HomeMy WebLinkAbout2006.08.07 RESO 2006-0045RESOLUTION 200645
RESOLUTION MAKING CERTAIN FINDINGS WITH RESPECT TO A
SUBSTANDARD BUILDING (THE END ZONE)
WHEREAS, the City of Hugo (the "City') intends to undertake a redevelopment project
in the City (the "Redevelopment Project");
WHEREAS, a part of the Redevelopment Project involves the demolition and clearance
of certain blighted buildings (the "Buildings") described on Exhibit A attached hereto located on
a certain parcel also described on Exhibit A attached hereto (the "Parcel");
WHEREAS, the City intends to create a tax increment financing district including the
Parcel as a "redevelopment district";
WHEREAS, the deteriorated condition of the Buildings creates a health and safety
concern necessitating the demolition of the Buildings prior to the creation of a tax increment
financing district;
WHEREAS, Minnesota Statutes, Sections 469.174 to 469.179 (the "Tax Increment Act")
provides that a City may create a tax increment financing district (a "TIF District") as a
"redevelopment district" if the City finds by resolution that parcels consisting of 70% of the area
of the TIF District are occupied by buildings, streets, paved or gravel parking lots or other
similar structures, and more than 50% of the buildings, not including out buildings, are
structurally substandard to a degree requiring substantial renovation or clearance;
WHEREAS, Minnesota Statutes, Section 469.174, subdivision 10(d), provides, among
other things, that a parcel may be deemed to be occupied by a structurally substandard building if
(1) the parcel was occupied by a substandard building within three years of the filing of the
request for certification of the parcel as part of the TIF District with the county auditor; (2) the
substandard building was demolished or removed by the City, the demolition or removal was
financed by the City or was done by a developer under a development agreement with the City;
and (3) the City found by resolution, before the demolition or removal, that the parcel was
occupied by a structurally substandard building and that after demolition and clearance the City
intended to include the parcel within the district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo,
Minnesota, as follows:
1. At least 15% of the area of the Parcel is occupied by the Buildings or other
buildings, streets, paved or gravel parking lots or other similar structures.
2. The Buildings are "structurally substandard" within the meaning of Minnesota
Statutes, Section 469.174, Subdivision 10. The reasons and supporting facts for this
determination are on file with the staff of the City.
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3. The Developer intends to demolish the Buildings and the City intends to
subsequently include the Parcel in a redevelopment tax increment district established pursuant to
Minnesota Statutes, Section 469.174, subdivision 10, which TIF District, if established, shall be
established within three years of the date hereof.
4. The Mayor and City Administrator are hereby authorized and directed to execute
a Development Agreement with the Developer in substantially the form submitted to the City
Council to provide for the demolition of the Building.
5. Upon filing the request for certification of the tax capacity of the Parcel as part of
the TIF District, the City will notify the county auditor that the original tax capacity of the Parcel
must be adjusted as provided in Minnesota Statutes, Section 469.177, Subdivision 1, paragraph
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Passed and adopted by the City Council of the City of Hugo, Minnesota, this 7th day of
August, 2006.
ATTEST:
City Cl ary Ann Creager 77
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EXHIBIT A
Description of Building:
There are four buildings on the parcel, a bar/restaurant, two motels, and a residential
dwelling.
Description of Parcel:
29.031.21.22.001
1884551vl A-1