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Home My WebLink About7C, Resolution 2010-043, Set Proposed TIF District Public Hearing Date - Presbyterian Homes Redevelopment� � �� L� Re uest for Council Action q � ....__ ................................................_.....__._..............................._................_..................._........_................................�........................_......__............_......................................_........................................... .....................�......___......_..y.._..._.......�......... .. .... .... .... . . Prepared By: Sue Iverson, Finance Director/�'reasurer � Council Meeting Date: August 30, 2010 � Resolution 2010-043: Set Proposed TIF District Public Hearing Date Presbyterian Homes Redevelopment Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Recommendation: 1. Motion to adopt Resolution 2010-043, a resolution calling for a public hearing by the City Council on the proposed adoption of a modification to the development program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4. Supporting Documents: 1. Memo from Sue Iverson, dated August 30, 2010. 2. Memo from Stacie Kvilvang, dated August 30, 2010. 3. Schedule of Events, as of August 18, 2010. 4. Resolution 2010-043. EN HILL S MEMORANDUM DATE: August 30, 2010 TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Finance Director/Treasurer SUBJECT: Proposed TIF District — Presbyterian Homes Redevelopment Background/Discussion: Presbyterian Homes has approached the city about its proposed redevelopment of portions of their facilities on their existing site. As a part of this redevelopment, the possibility of relocating the Arden Hills library to this site is also being explored. Presbyterian Homes is inquiring about the possibility of the City to offset some of the costs associated with this redevelopment by providing Tax Increment Financing (TIF) . The City has requested that Presbyterian Homes complete the required applications and pay the required fees and escrow deposits. Staff has been workin� with th� City's Fi�an�ial �onsultant �� btain estimates of the costs associated with this application and a timeline. Attached is a memo from Stacie Kvilvang, Ehlers & Associates, with her analysis of the proj ect, a proj ected timeline for creation of this �nancing district, and a resolution calling for a public hearing. Calling for the public hearing does not commit the City Council to provide TIF for the proj ect. The Council may stop the process at any time if it determines that it does not want to provide public assistance. This is a time sensitive project because of the proposed relocation of the Arden Hills library in order to obtain estimates and the feasibility of the proj ect to get information to the Ramsey County Board of Commissions. Since the Library Board is meeting on September 15th, the project will be part of the agenda for the Planning Commission on September 8th, the Financial Planning and Analysis Committee (FPAC) on September 9th, and staff hopes to update the City Council on the proj ect at either a worksession or the City Council meeting on September 13th. Staff Recommendation: Staff recommends adopting Resolution 2010-043, a resolution calling for a public hearing on the proposed adoption of a modi�cation to the development program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for Tax Increment Financing Dis�rict No. 4. E>::> >:�[ >. '<�:�` �� % �� % �� m Sue Iverson — Finance Director Stacie Kvilvang August 30, 2010 Proposed TIF District — Presbyterian Homes Redevelopment Presbyterian Homes has approached the City about its proposed redevelopment of portions of their facilities on their existing site. They have inquired about the possibility of the City providing Tax Increment Financing (TIF) to offset some of their costs associated with the redevelopment. Presbyterian Homes will be submitting a formal application to the City along with the required application fee of $2,000 (non refundable) and $10,000 escrow fee to cover costs. As stated in the application, to the extent that the $10,000 is not adequate to cover all costs associated with creation of the TIF district and development agreement, the developer is required to submit payment for these additional costs upon noti�cation from the City. At this time, it is estimated that the costs will range between $30,000 and $40,000 (excludes any estimate for legal costs associated with conduit financing requests). Based upon the existing site and qualifications required to create a district, we recommend that the City Council consider creating a renewal and renovation district, which has a sixteen (16) year term. Iii �i'C�.�Cp �� i��.1.�.i�� O�' �i11S ��J� �� d.IS�Y'IC�, �� C1�y I11US� �111C�.: 1. That 70 % of the area of the district is occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; 2. 20 percent of the existing structures are structurally substandard; and 3. 30 percent of the other buildings require substantial renovation or clearance to remove exiting conditions In order to comply with the �rst condition, only 15 percent of each parcel in the district needs to be occupied. Since this district is going to be comprised of one parcel, 15 percent of that parcel needs to be occupied by the above referenced items (which is the case). For purposes of determining compliance with item #2, a building is considered to be structurally substandard if the cost to bring it lnto compliance with current building code costs more than 15 percent to construct a new structure of the same square footage and type on the site. We recommend that the City contract with a third-party entity to cornplete the required inspections to make the above referenced �ndings and complete a report for the City. It is estimated that the cost to have the inspection and accompanying report completed with be approximately $6,000 (included in the estimate above). �� i�;, i��l ��1 � �m11 �� ' LEADERS IN PUBLIC FINANCE �� -��`µ�� : �� µ�� k��i��r��t��r��r��a��r� Sue Iverson Proposed TIF District — Presbyterian Homes Redevelopment August 30, 2010 Page 2 In order to meet timelines for some components of the redevelopment, the City Council needs to set a public hearing date for the creation of the district. From the public hearing date we "back" into a timeline which outlines the various steps and actions that are required to be completed prior to the public hearing. Attached is a proposed schedule of events to create a renewal and renovation district. The first action required is for the City Council to set a public hearing date on the proposed TIF district and development. Setting the public hearing date does not commit the City Council to provide Presbyterian Homes TIF. If at any time during the proposed schedule the City Council determines it does not want to provide public assistance to the proj ect, the process stops and no further action is required (i. e. you don't need to take action to "unset" the public hearing). Please contact me at 651-697-8506 with any questions. SCHEDULE OF EVENTS CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF THE TAX INCREMENT FINANCING PLAN FOR TA►X INCREMENT FINANCING DISTRICT NO. 4 (a renewal and renovation district) (as of August 18, 2010) August 30, 2010 City Council calls for a public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed Establishment of the Tax Increment Financing Plan for Tax Increment Financing Dis�rict No. 4. By September 23, 2010 LHB reviews buildings for redevelopment quali�cations and provides initial report to City. September 8, 2010 Proj ect information (property identification numbers and legal descriptions, detailed proj ect description, maps, but/for statement, and list of sources and uses of funds) for drafting necessary documentation sent to Ehlers. Ehlers confirms with the City whether building permits have been issued on the property to be included in the TIF Dis�rict. N/A Proj ect information submitted to the County Board for review of county road impacts if necessa�y* (at least 45 days prior to public hearing). *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. September 24, 2010 Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers will fax and mail on or befo�e September 24, 2010.J September 27, 2010 Ehlers conducts internal review of the Program and Plan. October 13, 2010 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [New Brighton-Shoreview-Arden Hills Bulletin publication deadline: October 7, 2010. — Ehlers will submit notice, map, and instructions on or befor�e October 7, 2010, via email to legals@lillienews.com.J October 6, 2010 Planning Commission reviews the Program Modification and TIF Plan to determine if they are in compliance with City's comprehensive plan and adopts a resolution approving the Program and Plan. � ENLERS LEADERS IN FUQLIC FI�VANCE SCHEDULE QF EVENTS - PAGE TWO CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF THE TAX INCREMENT FINANCING PLAN FOR TA�X INCREMENT FINANCING DISTRICT NO. 4 (a renewal and renovation district) October, 2010 LHB provides final report. October 25, 2010 City Council holds a public hearing at 7:00 P.M. on the Modi�cation to the Development Program for Development Dis�rict No. 1 and the Establishment of Tax Increment Financing District No. 4 and passes resolution approving the Program and Plan. �Ehler�s will email Council packet information to the City on October 18, 2009.J By December 31, 2010 Ehlers files Program and Plan with the l�IN Department of Revenue, Of� ce of the State Auditor, and Ramsey County. An action under subdivision 1, paragraph(a), contesting the validity of a determination by an authority under section 469.175, subdivision 3, must be commenced within the later of: (1) 180 days after the municipality's approval under section 469.175, subdivision 3; or (2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177, subdivision1. � ENLER S LEADERS IN FUf3LIC FINANCE EN HILLS CITY OF ARDEN HILLS COUNTY OF RAIVISEY STATE OF MINNESOTA RESOLUTION NO. 2010-043 RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ADOPTION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4. BE IT RESOLVED by the City Council (the "Council") for the City of Arden Hills, Minnesota (the "City"), as follows: Section l. Public Hearin�. This Council shall meet on October 25, 2010, at approximately 7:00 p.M., to hold a public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4, which are referred to collectively herein as the "Program and Plan", all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134, and Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and Section 2. Notice of Public Hearin�Filin� of Modifications. City staff is authorized and directed to work with Ehlers &�ssociates, Inc., to prepare the Program and Plan and to forward documents to the appropriate taxing jurisdictions includin� 1Zarns�y �ounty and Independent School District No. 621. The City Adminlstrator is authorized and directed to cause notice of the hearing, together with an appropriate map as required by law, to be published at least once in the of�cial newspaper of the City not later than 10, nor more than 30, days prior to October 25, 2010, and to place a copy of the Program and Plan on file in the City Administrator's office at City Hall and to make such copy available for inspection by the public. Dated: August 30, 2010 Adopted: Stan Harpstead, Mayor ATTEST: Pat Klaers, City Administrator