Loading...
HomeMy WebLinkAboutCC RES 96-061 RESOLUTION APPROVING 1996 AMENDMENTS TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND MAKING FINDINGS WITH RESPECT THERETO Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 103324 Box: 26 Folder: RES 1996 Document: CC RES 96-061 RESOLUTION APPROVING 1996 AMENDMENTS TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND MAKING FINDINGS WITH RESPECT THERETO CITY OF ST. ANTHONY • RESOLUTION NO. 9 6-0 61 RESOLUTION APPROVING 1996 AMENDMENTS TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND MAKING FINDINGS WITH RESPECT THERETO BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota as follows: 1. The Commissioners of the Housing and Redevelopment Authority of the City of St. Anthony, Minnesota (the "HRA") and the City of St. Anthony, Minnesota (the "City"), have previously approved Kenzie Terrace Redevelopment Plan, Chandler Place Redevelopment Plan, Highway Eight Redevelopment Plan, Redevelopment Plan for Redevelopment Project No. 2 and Redevelopment Plan for Redevelopment Project No. 3, together with certain amendments thereto (the "Redevelopment Plans") and redevelopment projects (the "Redevelopment Projects") to be undertaken pursuant thereto, and in order to finance the public redevelopment costs to be incurred by the City and the HRA in connection with certain of the Redevelopment Plans and Redevelopment Projects, the HRA and the City have approved Tax Increment Financing Plans (the "Financing Plans"), which establish two tax increment financing districts which are designated by the HRA as follows: Kenzie Terrace Tax Increment District (Hennepin County No. 1950) and •� Chandler Place Tax Increment District (Ramsey County No. 58) (the "Districts"). In 1995 the Board of Commissioners of the HRA and the City approved an amendment to the Redevelopment Plans and the Financing Plans which is entitled "Master Modification to Redevelopment Plans and Tax Increment Financing Plans" (the "Master Modification"). The Master Modification combines the areas subject to the Redevelopment Plans and expands the area subject to the Redevelopment Plans and authorizes the expenditure of tax increment revenues derived from the Districts to pay public redevelopment costs in the additional area made subject to the Redevelopment Plans by the Master Modification and costs related to construction of a community center designed to serve residents of the City. The HRA has approved an additional amendment to the Redevelopment Plans and Tax Increment Financing Plans which is entitled "1996 Amendments to.Master Modification to Redevelopment Plans and Tax Increment Financing Plans" (the "1996 Amendment") to expand the area subject to the Redevelopment Plans and amend the Financing Plans to authorize the additional expenditure of tax increment revenues derived from either of Districts to pay public redevelopment costs in the area subject to the Redevelopment Plans. 2. This Council on November 12, 1996, held a public hearing on the 1996 Amendment after notice of the public hearing was published in the official newspaper of the City not less than ten (10) days prior to the date of the hearing. At • such public hearing all persons desiring to be heard with respect to the 1996 Amendment were given an opportunity to express their views with respect thereto. • 3. This Council has previously found that the Kenzie Terrace Tax Increment District is a redevelopment district within the scope of Minnesota Statutes, Section 469.174, subdivision 10, and that the Chandler Place Tax Increment District is a housing district within the scope of Minnesota Statutes Section 469.174, subdivision 11, and the 1996 Amendment will not change such prior findings. The 1996 Amendment further serves the original goals and purposes of the City and HRA in approving the Redevelopment Plans, the Redevelopment Projects and the Financing Plans, by redeveloping property in the City and by providing needed facilities which will be of benefit to all residents of the City, including those residing in the area subject to the Redevelopment Plans, prior to the inclusion of the additional property by the 1996 Amendment. 4. Pursuant to Minnesota Statutes, Section 469.175, subdivision 4, it is hereby found that: (A) Kenzie Terrace Tax Increment District, is a redevelopment district, as defined in Minnesota Statutes, Section 469.174, subdivision 10, and Chandler Place Tax Increment District is a housing district, as defined in Minnesota Statutes, Section 469.174, subdivision 11, for the reasons set forth in previous findings by this Council, • and the 1996 Amendment does not alter these previous findings. (B) The proposed development to be undertaken in accordance with the Redevelopment Plans, as amended by the Master Modification and 1996 Amendment, in the opinion of this Council would not occur solely through private investment within the reasonably foreseeable future and therefor the use of tax increment financing is deemed necessary. (C) The Financing Plans, as amended by the Master Modification and 1996 Amendment, conforms to the general plan for the development of the City as a whole. (D) The Financing Plans, as amended by the Master Modification and the 1996 Amendment, will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the area subject to Redevelopment Plans by private enterprise. • -2- (E) The City confirms its election of the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, subdivision 3, clause (a) with respect to each of the Districts. Passed by the Council this 12th day of November, 1996. Qe4't'W&) Mayor Attest: le-4�1 ity C erk Reviewed for Administration: ity Manager • -3- • 1996 AMENDMENTS TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS • HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA MASTER MODIFICATION APPROVED JUNE 27, 1995 AMENDMENTS APPROVED NOVEMBER 12, 1996 • I. INTRODUCTION The Commissioners of the Housing and Redevelopment Authority of St. Anthony, Minnesota (the "HRA") and the City of St. Anthony, Minnesota (the "City"), have previously approved five Redevelopment Plans designated as Kenzie Terrace Redevelopment Plan, Chandler Place Redevelopment Plan, Highway Eight Redevelopment Plan, Redevelopment Plan for Redevelopment Project No. 2 (Ramsey County) and Redevelopment Plan for Redevelopment Project No. 3 (Ramsey County), together with certain amendments thereto (as so amended, the "Redevelopment Plans"), and have approved redevelopment projects (the "Redevelopment Projects") to be undertaken pursuant thereto, and in order to finance the public redevelopment costs to be incurred by the City and the HRA in connection with certain of the Redevelopment Plans and the Redevelopment Projects, the HRA and the City have approved tax increment financing plans (the "Financing Plans") which establish two tax increment financing districts designated by the HRA as follows: Kenzie Terrace Tax Increment District (Hennepin County No. 1950) and Chandler Place Tax Increment District (Ramsey County No. 58) (the "Districts"). In order to authorize the City and HRA to undertake certain activities designed to remove, prevent and reduce blight, blighting factors and the causes of blight in the City and provide facilities intended to serve all residents of the City, that the HRA on June 27, 1995 approved amendments to the Redevelopment Plans, the Redevelopment Projects and the Financing Plans designated as the Master Modification to the Redevelopment Plans and Tax Increment Financing Plans (the "Master Modification") which combined the areas subject to the Redevelopment Plans and included additional property in the area subject to the Redevelopment Plans and authorized tax increment revenue derived from any of the Districts to be utilized in any area subject to the Redevelopment Plans. The HRA has identified certain property in the City not presently included in any of the areas subject to the Redevelopment Plans which the HRA believes either presently contains blight or blighting factors or which because of age, obsolescence, market conditions and other factors is suspectable to blighting conditions. Such property is identified on Exhibit A hereto (the "Additional Property"). By this 1996 Amendment to the Master Modification the Commissioners of the HRA amend the Redevelopment Plans to include the Additional Property in the area subject to the Redevelopment Plans and amend the Financing Plans to authorize the additional expenditure of tax increment revenues derived from either of the Districts. The authorization on the expenditure of tax increment revenue from a District is subject to any limitations on such expenditures with respect to such District contained in the Minnesota Tax Increment Financing Act (Minnesota Statutes, Section 469.174 to 469.179). This 1996 Amendment to the Master Modification does not include the Additional Property in any of the Districts. • This 1996 Amendment to the Master Modification is approved by the • Commissioners of the HRA and the City pursuant to Minnesota Statutes, Chapter 469.029, subdivision 6, and Minnesota Statutes, Section 469.175, subdivision 4. II. STATEMENT OF NEED AND OBJECTIVES The inclusion of the Additional Property in the Redevelopment Plans will aid in the redevelopment of the Additional Property in a manner beneficial to the residents of the City and consistent with the objectives of the HRA as stated in Redevelopment Plans and which will meet the needs specified in Redevelopment Plans. III. ADDITIONAL EXPENDITURE OF TAX INCREMENT Additional expenditures of tax increment authorized by this 1996 Amendment to the Master Modification of the Redevelopment Plans and Tax Increment Financing Plans include costs associated with acquisition and rehabilitation and other public redevelopment costs associated with redevelopment activities related to the areas subject to the Redevelopment Plans. At this time the HRA has not specifically identified any property to be acquired by the HRA but the HRA reserves the right to acquire any property if it determines that such acquisition is desirable in connection with the redevelopment of such property. In addition, in connection with any redevelopment of the property the HRA may become a limited • partner in the owner of the property if it deems it desirable. The additional new expenditures of tax increment authorized hereby with respect to the development or redevelopment of certain property subject to the Redevelopment Plans are as follows: Expenditure Property/Activity Authorized Redevelopment of vacant property between Industrial Custom Products and Amoco Station on 37th Avenue North $ 233,000 Bridge work along Silver Lake Road between 37th Avenue NE and Silver Lane 100,000 Streetscape within City 250,000 $ 583,000 In addition, the amount of additional expenditures for certain items set forth in Article III of the Master Modification are amended as follows: • -2- • Expenditure Increase Authorized in New (Decrease) from Master Expenditure Master Property/Activity Modification Amount Modification Old Clark Station/Redevelopment $ 30,000 $ 40,000 $ 10,000 Bowling Alley Redevelopment 60,000 40,000 (20,000) St. Anthony Shopping Center Area 35,000 60,000 25,000 Vacant Lots on Silver Lake Road 60,000 75,000 15,000 Apache Plaza Redevelopment 300,000 820,000 520,000 Community Center 3,000,000 3,100,000 100,000 Lowrey Grove Development 500,000 -0- (500,000) Autumn Woods Senior Project (KFC and approximately 10 homes) 500,000 1,300,000 800,000 Net Increase in Expenditures $950,000 The additional expenditures authorized by the 1996 Amendment to the Master Modification total $1,533,000. The use of tax increment derived from the Districts to pay the costs described above is hereby authorized. Such costs may be paid directly from tax increment derived from the Districts, or may be paid indirectly from tax increment derived from the Districts, by the payment of debt service on a loan or loans made by the City to the HRA or by the HRA to finance such cost. Any such loan made by the City or HRA will be repaid, with interest, from the tax increment derived from the Districts. Other than the loan or loans from the City or the HRA, it is not expected that any obligations will be issued by the City or HRA to finance such costs. IV. FISCAL AND ECONOMIC IMPLICATIONS OF ADDITIONAL EXPENDITURES It is estimated fiscal and economic implications of the additional expenditures of tax increment revenue derived from the Districts authorized by this Master Modification will be as follows: The local governmental units other than the City which are authorized by law to levy ad valorem property taxes in the area where the Districts are located are Independent School District No. 282, Hennepin County, Ramsey County, the HRA, and various metropolitan area authorities, including the Metropolitan Council, the Metropolitan Transit Commission, the Metropolitan Airports Commission and the Metropolitan Mosquito Control District (the local government units). • -3- After the establishment and during the continuation of the Districts, as a result of the Redevelopment Projects and the implementation of the Redevelopment Plans and the improvements in the Districts there has been an increase in the tax capacity of the taxable property in the Districts. If the tax increments derived from the Districts are not applied to pay the additional expenditures described herein, certain of the Districts would terminate earlier than would otherwise be the case assuming ad valorem taxes are paid with respect to the taxable property in the Districts in the anticipated amounts. Upon such termination such increased tax capacity would be available for taxation by the local governmental units. However, as a result of the Master Modification and this 1996 Amendment thereto such increase in tax capacity will not be available for taxation by the local governmental units until a later date with respect to certain of the Districts. Offsetting such later termination of the Districts will be an increase in tax capacity to certain property which is not located in a tax increment financing district as a result of redevelopment of such property. Such increase in tax capacity will be available for taxation by the City and the local governmental units. V. DETERMINATIONS IN ORIGINAL FINANCING PLAN The determinations made in the Financing Plans with respect to • designation of the Kenzie Terrace Tax Increment District as a redevelopment district and the designation of the Chandler Place Tax Increment District as a housing district, the impact of the establishment of the Districts and the implementation of the Redevelopment Plans and undertaking of the Redevelopment Projects and the captured tax capacity of the Districts upon the redevelopment thereof are not affected by this Master Modification and such determinations remain in full force and effect following the adoption of this Master Modification. VI. ADDITIONAL AMENDMENTS TO PLAN The City and the HRA reserve the right to further alter the Master Modification and to further amend or modify the Redevelopment Plans and the Financing Plans by their joint action, subject to the provisions of state law regulating such action. VII. ORIGINAL PLAN The Redevelopment Plans and the Financing Plans, except to the extent provisions thereof are explicitly amended or supplemented by the Master Modification and this 1996 Amendment thereto shall remain in and be in full force and effect. -4- • EXHIBIT A ADDITIONAL PROPERTY SUBJECT TO REDEVELOPMENT PLANS Vacant property between Industrial Custom Products and Amoco Station on 37th Avenue North Bridge work along Silver Lake Road between 37th Avenue NE and Silver Lane Streetscape with the City • • V Ks [IUCMTON •w.rr• • ST. ANTHONY TIF DISTRICT w Areas in established TIF Districts. � n m K 1 A caCMNCL a Areas in addition to areas in the TIF Districts where funds from the TIF District can be expanded. 7 t will 0 LVAMUL. TrM r.R.000 o� Fp� 0 u I 7! Y • f T MTw I YO r IA+o.I MINNt1POUf It G\ rwi•r• i F 1y� i N � � ® I'I