Loading...
HomeMy WebLinkAboutRES 21-025 ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR REDEVELOPMENT PROJECT AREA NO 3 AND ESTABLISHING THE LOWRY GROVE TIF DISTRICT AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFORCITY OF ST. ANTHONY HENNEPIN COUNTY STATE OF MINNESOTA Council member W (%I W introduced the following resolution and moved its adoption: RESOLUTION 21-025 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR REDEVELOPMENT PROJECT AREA NO. 3; AND ESTABLISHING THE LOWRY GROVE TIF DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR 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 Council has heretofore established Redevelopment Project Area No. 3 (the "Project Area") and adopted the Development Program therefor. It has been proposed by the City and recommended by the St. Anthony Housing & Redevelopment Authority (the "Authority") that the City adopt a Modification to the Development Program (the "Development Program Modification") for the Project Area and establish the Lowry Grove TIF District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, (i) providing the proposed TIF Plan and the information on the fiscal and economic implications of the plan to the county auditor and the clerk of the school district board at least 30 days before a public hearing to be held by the City on the Program Modification and TIF Plan and (ii) publishing notice of the public hearing as required by the Act. 1.04. Certain written reports (the "Reports") relating to the Program and Plan 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 Program and Plan. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. 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. 4831-3967-3825\1 1.05. The City is not modifying the boundaries of the Project Area, but is however, modifying the Development Program therefor. 1.06. Pursuant to a resolution adopted on March 23, 2021, the Authority approved the Program and Plan and recommended that the City approve the Program and Plan. Section 2. Findings for the Adoption and Approval of the Development Program Modification 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under the Development Program; (b) the Development Program, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Development Program, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of Lowry Grove TIF District 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district' under Minnesota Statutes, Section 469.174, Subd. 10 of the Act. 3.02. The Council further finds that the proposed development 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 Program and Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment or development 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 (and also included in the TIF Plan). Section 4. Public Purpose. 4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will result in increased employment in the City and the State of Minnesota, will result in preservation and enhancement of the tax base of the State, and will result in the redevelopment of substandard properties and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make the development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. 4831-3967-3825\1 Section 5. Approval and Adoption of the Program and Plan. 5.01. The Program and Plan, 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 Manager. 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 Program and Plan 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 Auditor of Hennepin County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City 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. 5.04. The City Recorder is further authorized and directed to file a copy of the Program and Plan with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. TlIe motion for the adoption of the foregoing resolution was duly seconded by Council member cL , and upon a vote being taken thereon, the following voted in favor thereof: Intcoe,, �ti� k.v� J,)z-1S 0/-) and the following voted against the same: �Jkk, Dated: March 23, 2021 ATTEST: ��& ��2i Nic 1 Miller, City berk Reviewed for administration: Charlie Yunker, City Manager 4831-3967-3825\1 EXHIBIT A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Lowry Grove TIF District (the "District") as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a). The District consists of two parcels and vacant right-of-way, with plans to redevelop the area for the construction of approximately 489 units of apartments, of which Phase I will consist of a 135 -unit senior apartment with independent living, assisted living and memory care units. Phase II will consist of approximately 129 units of senior assisted living and Phase III will consist of approximately 225 units of market rate apartments. Parcels consisting of 70 percent of the area of 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 D of the TIF Plan.) 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 the District permitted by the TIF 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 the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, lack of adequate/updated utilities, environmental remediation costs and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The City has reviewed several development proposals for the area and all of them have requested TIF for the development. The developer for Phase I was asked for and provided a letter and a pro forma as justification that the developer would not have gone forward without tax increment assistance. 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 District permitted by the TIFPIan: This finding is justified on the grounds that the cost of land acquisition, demolition, environmental remediation, site and public improvements and utilities add to the total redevelopment cost. Historically, construction costs, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. 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. Therefore, the City concludes as follows: 4831-3967-3825\1 (a) The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. (b) If the proposed development occurs, the total increase in market value will be $80,666,000. (c) The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $28,242,769. (d) Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $52,423,231 (the amount in clause b less the amount in clause b without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project Area No. 3 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the redevelopment of substandard properties, increased tax base of the State, add a high-quality development to the City and increase the availability of safe and decent life -cycle housing in the City. 4831-3967-3825\I