HomeMy WebLinkAbout4B, Resolution 2009-030, Accepting the 2009 Minnesota Laws, Ch. 88, Article 5�/�
EN HILLS
Re uest for Council Action
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Prepared By: Ron Moorse, City Administrator
James Lehnhoff, Council Meetin Date: November 9 2009
Community Development Director g '
Resolution 2009-030 accepting the 2009 Minnesota Laws, Ch. 88, Article 5, Section 16 relating to a
tax increment financing district in the City of Arden Hills
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation: �
Approve Resolution 2009-030 accepting the 2009 Minnesota Laws, Ch. 88, Article 5, Section 16 relating
to a tax increment financing district in the City of Arden Hills
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Supporting Documents:
1. November 9, 2009, Memo to the City Council
2. Resolution 2009-030, a Resolution approving 2009 Minnesota Laws, Ch. 88, Article 5, Section 16
relating to a tax increment financing district in the City of Arden Hills
3. 2009 Minnesota Laws, Chapter 88, Article 5, Section 16
�.� EN HILLS
MEMORANDUM
DATE: November 9, 2009
TO: Honorable Mayor and City Council Members
FROM: Ron Moorse, City Administrator
James Lehnhoff, Community Development Director
SUBJECT: Twin Cities Army Ammunition Plant (TCA.AP) Property
Special Tax Increment Financing (TIF) Legislation
Action Request
Approve Resolution 2009-030 accepting the 2009 Minnesota Laws, Ch. 88, Article S, Section 16
relating to a tax increment �nancing district in the City of Arden Hills
Back�round
At the conclusion of the 2009 Minnesota Legislative session, the Legislature passed and the
Governor approved the City's request for special Tax Increment Financing (TIF) legislation for
the Twin Cities Army Ammunition Plant (TCAAP) property. The approved legislation provides
the following flexibility from the standard TIF limitations:
• It is deemed to be a redevelopment district without meeting the blight test.
• The five-year rule is extended to 10 years.
• The duration limit of the district is increased from 25 years to 30 years.
• The city may elect to delay receipt of the �rst increment which sta�ts the duration running
by up to six years.
• The authority to create a district under the special law expires on Dec. 31, 2019.
In order to have the option of using this special TIF legislation at some point in the future, the
City, along with the School Board and County Board, must approve the special legislation. This
approval process would need to be completed before the start of the next regular legislative
session, which starts in January 2011. However, Mr. Bubul has suggested that if the City wants
City of Arden Hills
IlAhdocsllahlAHdatalPlanninglCommunity DevelopmentlTCAAPIPIanning - Post May 20091TIFI110909 - CCMemo - TCAAP Special TIF
Legislation approval. doc
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to accept the potential use of the TIF legislation, the process should be completed before the end
of 2009 to avoid any confusion over the expiration date and to avoid the possibility of the
legislation being repealed during the 2010 session.
While this special legislation had been crafted around the mixed use development concept
proposed by R:RLD, it could still be a powerful tool for a revised land use scenario. Obtaining
special TIF legislation requires a signi�cant amount of time and effort, and regaining it in the
future could be difficult. While the cost and time invested into this process was born by RRLD,
the City remains the benefactor of that effort. This special legislation could still be helpful in
achieving community goals, including advancing the cleanup process and adding other
community amenities. Any new land use scenario would require a critical review before TIF is
considered an option.
Approving the special TIF legislation is not an approval or implementation of the actual TIF
district. Furthermore, approving the special legislation does not guarantee that the City will
choose to apply the special TIF legislation. By approving the special TIF legislation, the City is
simply retaining the ability to use the special TIF legislation in the future if the City determines
that it would be appropriate for a particular proj ect. The City has been clear in saying that no
developer should automatically expect TIF of any kind.
At the September 14, 2009, work session, the City Council directed staff to bring this item before
the Council for consideration. If the resolution is approved by the City Council, staff will work
with the Ramsey County Board and Mounds View School District to gain their approval of a
similar resolution.
Attachment
• Resolution 2009-030, a Resolution approving 2009 Minnesota Laws, Ch. 88, Article 5,
Section 16 relating to a tax increment financing district in the City of Arden Hills
• 2009 Minnesota Laws, Chapter 88, Article 5, Section 16
City of Arden Hills
IlAhdocsllahlAHdatalPlanningl Community Developmentl TCAAPIPIanning - Post May 20091 TIFI110909 - CC Memo - TCAAP Special TIF
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EN ILLS
CITY 4F ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 2009-030
A RESOLUTION APPROVING 2009 MINNESOTA LAWS, CH. 88, ARTICLE 5,
SECTION 16 RELATING TO A TAX INCREMENT FINANCING DISTRICT
IN THE CITY OF ARDEN HILLS
BE IT RESOLVED By the City Council of the City of Arden Hills, Ramsey County,
Minnesota (the "City") as follows:
1. It is hereby determined that:
(a) 2009 Minnesota Laws, Chapter 88, Article 5, Section 16 (the "Special
Law") authorized the City to establish a redevelopment tax increment financing district
within the former Twin Cities Army Ammunition Plant site, subj ect to certain special
rules;
(b) the Special Law is effective upon approval by a maj ority vote of the City
Council, a maj ority vote of the Ramsey County Board of Commissioners (the "County
Board"), and a majority vote of the School Board of Independent School District No. 621
(the "School Board"), and filing a certificate with the Minnesota Secretary of State, all in
accordance with Minnesota Statutes, Sections 469.1782 and 645.021, subd. 3; and
(c) the City Council has determined that is in the best interest of the City and
its residents to approve the Special Law.
2. The Special Law is hereby approved in all respects.
3. Upon receipt of certified copies of resolutions approving the Special Law by the
County Board and the School Board, the City Clerk is authorized and directed to file with the
Secretary of State such resolutions along with a certified copy of this resolution and the
appropriate certificate in the form prescribed by the State attorney general.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 9TH DAY
OF NOVEMBER 2009.
ATTEST:
Stanley D. Harpstead, Mayor
Ronald J. Moorse, City Administrator
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
, and upon vote being taken thereon the following members voted in favor of the
motion:
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
2009 Minnesota Laws, Chapter 88, Article 5, Section 16
Sec. 16. CITY OF ARDEN HILLS• SPECIAL TA�X INCREMENT FINANCING
AUTHORITY.
Subdivision 1. Establishment. The city of Arden Hills mav establish within the
corporate boundaries of the city a redevelo�ment tax increment financin� district sub� ect
to the s�pecial rules under subdivision 2. The district must be located within the area
described in the TCAAP Boundar. Survey dated December 12, 2007, by W. Brown Land
.
urve.�n , Inc.
Subd. 2. Special rules. �a) If the citv elects to adopt the tax increment financing
plan in subdivision 1 for the district, the followin rules ap�ly to the district:
� 1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
(2) the five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to a ten-year period; and
�3) the duration limit under Minnesota Statutes, section 469.176, subdivision lb,
para�raph (a), clause�4), is extended to 30 years after recei�t of the first increment.
(b) Notwithstandin� Minnesota Statutes, section 469.175, subdivision 1, para�raph
(b), the city ma.��nate the �rst year in which it elects to receive an increment, up to six
years followin� the year of a�proval of the district. The city must make the desi ation
by written notice to the county auditor delivered by June 3 0 o f the .�� ear �rior to the
desi�nated year of �rst receipt.
Subd. 3. Expiration. The authority to a��rove a tax increment financin��lan to
establish a tax increment financin� district under this section ex�ires December 31, 2019.
EFFECTIVE DATE.This section is effective upon approval b. ��the governing bodX
of the city of Arden Hills and upon compliance by the citv with Minnesota Statutes,
sections 469.1782, subdivision 2, and 645.021, subdivision 3.
2009 Minnesota Session Laws
https://v�►�►uw.revisor.mn.gov/laws/?id=88&doctype=Chapter&year=2009&type=0