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HomeMy WebLinkAbout93-029 f . RESOLUTION NO, 93-29 RESOLlITION RELATING TO DEVELOPMENT DIS1RICT NO.1, TAX INCREMENT FINANCING DIS1RICT NO.3; ADOPTING AN AMENDMENT TO THE DEVELOPMENT PROORAM AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR AND THE EXEClITION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITII BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota (the "City"), as follows: Section 1. Recitals. . 1.01. The City, pursuant to Minnesota Statutes, Sections 469.124 to 469.134, as amended, has designated a developmenr district within the City, denominated Development District No. I (the "Development District"), adopted a development program therefor (as amended to date, the "Original Development Program"), and has established two tax increment fmancing districts therein. Officers of the City and Ehlers and Associates, Inc. have prepared an amendment to the Original Development Program for the Development District, denominated the Modified Development Program for Development District No.1 (as so amended, the "Development Program"), which authorizes additional development activities within the Development District. The Development Program has been transmitted to the planning agency of the City, which has determined that the Development Program conforms to the general plan for the development of the City. Pursuant to Minnesota Statutes, Section 469.126, the adoption of the Development Program is for the consideration of this Council. On April 26, 1993, this Council conducted a public hearing on the desirability of adopting the Development Program. Notice of the public hearing was duly publishedasrequiredby-Iaw in New Brighton Bulletin ,the official newspaper of the City, on 4/14 ,1993. 1.02. Pursuant to the Minnesota Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.179, as amended (the "Act"), officers of the City and Ehlers and Associates, Inc. have prepared a tax increment financing plan (the "Plan"), which is now before this Council for approval. The Plan was prepared in conjunction with the amendment to the Original Development Program referred to in Section 1.01 and is the proposed method for financing the development activities currently proposed to be undertaken pursuant to rhe Development Program. The proposed tax increment fmancing district (the "District") comprises certain property within the Development District as described in the Plan. 1.03. Members of the Board of County Commissioners of Ramsey County and of the Board of Education of Independent School District No, 621 have been given an opportunity to meet with the City and comment on the Plan. Pursuant to Minnesora Statutes, Section 469.175, Subdivision 3, this Council on April 26, 1993, conducted a public hearing on the desirability of approving the Plan, in conjunction with rhe public hearing conducted on the proposed ~~e1j?!2mel1hProgrf,l\ ~9:tice of the public hearing was duly published 'IS required by law in the e 19 on u e ~lfhe official newspaper of the City, on - 4 /14 ,1993. Section 2. AdoDtion of Develo,pment Prol:l'am. On the basis of the proposed Development Program prepared by officers of the City and the information elicited from consultation with the planning agency and at the public hearing referred to in Section 1.01, it is hereby found, determined and declared: . . . . . 2.01. The Council hereby determines and declares that there is a need for new development in that part of the City comprising the District to provide employment opportunities, to improve the tax base and to improve the general economy of the state, The Development Program proposes that the City pay for the costs of the acquisition of certain property and the construction and installation of certain site and utility improvements to encourage the construction of a low and moderate income rental housing project in the District. The Council hereby fmds that the proposed Development Program would improve the Development District by encouraging private development of property therein, thereby increasing employment opportunities and the tax base of the City and overlapping taxing jurisdictions. It is in the best interests of the City to adopt the Development Program. 2.02. Upon review of the Development Program, the information elicited from the planning agency and at the public hearing, and on the basis of the findings made in Section 2.01, this Council hereby adopts the Development Program and orders that the Development Program be placed on file in the office of the City Clerk Section 3. Approval of Tax Increment Financinl! Plan for the District. On the basis of the Plan and the information elicited at the public hearing referred to in Section 1.03, it is hereby found, determined and declared: 3,01. The Plan provides the means to finance certain capiral and administrative costs of the Development District, including the acquisition and improvement of the property located in the District. The Plan contains a statement of objectives for the improvement o(the Development District, a statement as to the development program for the District and a statement of the property within the Development District which the City intends to acquire. The Plan also estimates the capital and administrative costs of the Development District, including the amount of administration expenses, the amount of bonded indebredness to be incurred, the sources of revenues to finance or otherwise pay public costs of the District, the most recent net tax capacity of taxable real property within the District, the captured net tax capacity of the District at completion and the duration of the District. The Plan also describes and identifies the development activities to be undertaken or expected to be undertaken in rhe District. The Plan further contains an estimate of the impact of the proposed tax increment financing on the net tax capacities of all taxing jurisdictions in which the District is located. All the captured tax capacity is necessary for the objectives of the District. 3.02. This Council hereby finds that the District is a geographic area within a "project" as defmed in Minnesota Statutes, Section 469.174, Subdivision 8, and is a proper tax increment financing district within the meaning of Section 469.174, Subdivision 9. The Council further fmds that the establishment of the District is in the public interest because the project to be undertaken therein is intended for occupancy, in part, by persons or families of low and moderate income, as defined in federal housing statutes, and no part of the project consists of commercial or other uses. Therefore, the District qualifies as a "housing district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11. The income limitations of Section 469.1761 of the Act are applicable to tenants in the project, because the District is not located in a targeted area as defined in Minnesota Sratutes, Section 462C.02, Subdivision 9, clause (e). 3.03. This Council hereby fmds that the proposed low and moderate income rental housing project to be encouraged pursuanr to the Development Program would not. in the opinion of this Council, occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is deemed necessary. No developer has -3- ~ . . . . expressed an interest in developing the unimproved land that comprises the District. Without tax increment financing of the costs of the land acquisition and site and utility improvements proposed by the Development Program, private investment would not develop the District within the reasonably foreseeable future. 3.04. This Council hereby fmds that the Plan conforms to the general plan for the development of the City as a whole. Under the general plan for the development of the City the District is zoned R - 3 , permitting the uses proposed by the Development Program. 3.05. This Council hereby finds that the Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. The development activities contemplated in the Development Program would provide an opportunity for a significant increase in employment opportunities in the City and enhance the tax base of the City. 3.06, Upon review of the Plan, rhe information elicited at the public hearing and on the basis of the fmdings in Sections 3.01 to 3.05, this Council hereby approves the Plan and the establishment of the District as a tax increment financing district in the City. to be denominated "Tax Increment Financing District No.3." Section 4. ~. The City Clerk is hereby authorized and directed to me the Plan and the Development Program with the Commissioner of Revenue as required by Minnesota Statutes, Section 469.175, Subdivision 2. Section 5. Imnlementation of DeveloDment Pro~am and Approval of Documents. The Council authorizes and directs officers of the City to proceed with implementation of the Developmenr Program, and to negotiate, draft, prepare and present to this Council for its consideration all funher plans, resolutions, documents and contracts necessary for this purpose. In this regard, there has been presented to this Council: (I) a draft of a Contract for Private Development in Development District No. I (the "Contract for Development") proposed to be entered into between the City and Cottage Lifestyles Incorporated (the "Company"), pursuant to which the City would agree to finance the acquisition of the project site and certain site and utility improvements relating thereto by reimbursing the Company for such costs from available tax increment revenues from the District. and the Company would agree to undenake development of the rental housing project; and (2) a draft of a Declaration of Covenants (the "Declaration") to be executed by the Company and to implement the income requirements of Section 469.1761 of the Act. The forms of the Contract for Development and the Declaration are hereby approved and the Mayor and the City Administrator are hereby authorized and directed to execute the Contract for Development on behalf of the City, with such modifications and amendments thereof and deletions . therefrom as the Mayor or the City Attorney shall approve. The execution of the Contract for -4- . . . . . , ,. "Development by such officers of the City, or other appropriate officers acting in their capacities in the events of their absence or disability, shall be conclusive evidence of the approval of and authorization by the City and this Council of the Contract of Development so executed and of the Declaration. ~M I/It-- Mayor Anes!: 4~~~ -5- I, . . . CERTIFICATE AS TO RESOLUTION I. the undersigned, being the duly qualified and acting recording officer of the City of Arden Hills. Minnesota (the "City"). hereby certify that the attached resolution is a true copy of Resolution No. ~ntided: "RESOLUTION RELATING TO DEVELOPMENT DISTRIcr NO.1, TAX INCREMENT FINANCING DISTRIcr NO.3; ADOPTING AN AMENDMENT TO TIm DEVELOPMENT PROGRAM AND APPROVING A TAX INCREMENT FINANCING PLAN TIIEREFOR AND TIm EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION TImREWITIf' (the "Resolution"). on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a meeting on April 26, 1993, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. WITNESS my hand officially this -2Q. day of April. 1993. ~U~ , City . mSlrator "