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HomeMy WebLinkAboutCC RES 03-082 A RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 3; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 3- 5 WITHIN REDEVELOPMENT PROJECT AREA NO. 3 AND APPROVING THE REMOVAL OF CERTAIN PARC Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 104571 Box: 31 Folder: RES 2003 Document: CC RES 03-082 A RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 3; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 3- 5 WITHIN REDEVELOPMENT PROJECT AREA NO. 3 AND APPROVING THE REMOVAL OF CERTAIN PARC . I CITY OF ST. ANTHONY • RESOLUTION NO. 03-082 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVLEOPMENT PROJECT AREA NO 3; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 3-5 WITHIN REDEVELOPMENT PROJECT AREA NO. 3 AND APPROVING THE REMOVAL OF CERTAIN PARCELS FROM THE HRA'S TAX INCREMENT FINANCING DISTRICT NO. 3-3 FOR INCLUSING IN DISTRICT NO. 3-5 AND ADOPTING A TAX INCREMENT FINANCING PLAN THREFOR BE IT RESOLVED by the City Council (the "Council") of the City of St. Anthony, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The City Council of the City of St. Anthony previously approved the establishment of Apache Tax Increment Financing District No. 3-3 (District No. 3-3) within Redevelopment Area No. 3 and approved the Tax Increment Financing Plan therefor and approved the establishment of Redevelopment Project No. 3 by the St. Anthony Housing and Redevelopment Authority (the "HRA") and approved the Redevelopment Plan for Redevelopment Project Area No 3. (the "Redevelopment Plan") therefor. The HRA has requested approval by the Council of(i) the tax increment financing plan for the HRA's proposed Tax Increment Financing District No. 3-5 ("District No. 3-5") to be located • within the HRA's Redevelopment Project Area No. 3 and (ii) the modification of the tax increment financing plan for District No. 3-3 providing for the removal of certain parcels from District No. 3-3 to be included within the newly established District No. 3-5 (collectively, the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 through 469.1081, 469.001 through 469.047, and 469.174 through 469.1799, all inclusive, as amended, (the "Act") and as reflected in the Plans that have been presented for the Council's consideration. 1.02. The HRA and Council have investigated the facts relating to the Plans and have caused the Plans to be prepared. 1.03. The HRA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Ramsey County and Independent School District No. 282 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. These reports include the Report prepared by LHB, the Environmental and Asbestos Reports prepared by Braun Intertec, report of the Northwest Quadrant Task Force and the Northwest Redevelopment Area Blight Analysis prepared by Dahlgren Shardlow and Uban Inc. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The City is modifying the boundaries of Redevelopment Project Area No. 3. • Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council, the effect of such actions will be: (i) to provide an impetus for the redevelopment of blighted, obsolete, substandard, or deteriorating areas of the City in order to remove or prevent such conditions; (ii) to increase employment opportunities in the City; and (iii) to provide such other facilities and improvements as shall further the objectives in the Plans and Minnesota Statutes 469.001 through 469.047 Section 3. Findings for the Establishment of Tax Increment Financing District No. 3-5. 3.01. The Council hereby finds that Tax Increment Financing District No. 3-5 is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10(a)(1). 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. • 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The Housing and Redevelopment Authority of St. Anthony elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. Section 4. Public Purpose. 4.01 The adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 5. ARnroval and Adoption of the Plans. 5.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Clerk. • 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans,resolutions, documents and contracts necessary for this purpose. 5.03 The City's staff shall take such action as is necessary to (i) cause the County Auditor of Ramsey County to decertify the above-mentioned parcels from District No. 3-3 and to no longer remit • tax increment from these parcels within District No. 3-3 to the City and HRA and(ii)notify the County Auditor of the reduction in the geographic area of District No. 3-3 caused by the decertification of such parcels. 5.04 The Auditor of.Ramsey County is requested to certify the original net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the Housing and Redevelopment Authority of St. Anthony is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.05. The City Clerk is further authorized and directed to file a copy of the Plans with the Commissioner of the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. Adopted this ?3 day of Sa ' v-n , 2003. C Mayor • ATTEST: (- City TTEST: (-City Clerk Reviewed for Administration: City Mar4fjer • . EXHIBIT A RESOLUTION # The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 3-5, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 3-5 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). The District consists of 24 parcels, with plans to redevelop the area for mixed-use redevelopment purposes. At least 70 percent of the area in the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F of the TIF plan). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax . increments for the maximum duration of Tax Increment Financing District No. 3-5 permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount of commercial property for expansion adjacent to the existing project, the incompatible land uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance (see attachment in Appendix G). The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: This finding is justified on the grounds that the cost of site and public improvements and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increment has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $126,326,500. The present value of tax increments from the District is estimated to be $18,971,728. It is the Council's finding that no development with a market value of greater than $107,354,772 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition and public improvements in the general area of the District (see Cashflow in Appendix D of the TIF Plan). 3. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 3-5 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the Plan and found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for District No. 3-5 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Redevelopment Project Area No. 3 by private enterprise. The redevelopment to be assisted by District No. 3-5 will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add high quality development to the City. In furtherance of these objectives, the HRA intends to enter into development agreements with private developers, which agreements • will obligate such developers to construct, operate, and maintain the facilities contemplated under the Redevelopment Plan for Redevelopment Project Area No. 3. Therefore, the planned redevelopment will be consistent with the sound needs of the City as a whole and will be accomplished, to the maximum extent possible, by private enterprise