HomeMy WebLinkAbout96-48 - ADMIN Resolution - City Council - 1996/04/016
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RESOLUTION NO. 96-48
CITY OF ST. LOUIS PARK
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION MODIFYING REDEVELOPMENT PROJECT NO. 1, ESTABLISHING THE
VICTORIA PONDS REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND
APPROVING AND ADOPTING THE REDEVELOPMENT PLAN AND TAX INCREMENT
FINANCING PLAN RELATED THERETO.
BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"),
as follows:
Section 1. Recitals.
1.01. It has been proposed that the City modify the Redevelopment Plan for Redevelopment Project No. 1,
establish the Victona Ponds Redevelopment Tax Increment Financing District and approve and adopt the Redevelopment
Plan and Tax Increment Financing Plan relating thereto, located within Redevelopment Project No. 1, all pursuant to and
in accordance with Minnesota Statutes, Sections 469.124 to 469.134, inclusive, as amended, and Minnesota Statutes,
Sections 469.174 to 469.179, inclusive, as amended.
1.02. The Council has investigated the facts and has caused to be prepared the modified Redevelopment Plan
for Redevelopment Project No. 1 and the proposed Tax Increment Financing Plan for the Victoria Ponds Redevelopment
Tax Increment Financing District (the "Plans").
1.03. The City has performed all actions required by law to be performed pnor to the modification of
Redevelopment Project No. 1 and the establishment of the Victona Ponds Redevelopment Tax Increment Financing
District and the adoption of the Plans relating thereto, including, but not limited to, notification of Hennepin County and
School District No. 283 having taxing jurisdiction over the property to be included in the Victoria Ponds Redevelopment
Tax Increment District, a review by the City Planning Commission of the proposed Plans and the holding of a public
hearing upon published notice as required by law.
Section 2.
Findings for the Modification of the Redevelopment Plan for Redevelopment Project No. 1
the Establishment of the Victona Ponds Redevelopment Tax Increment Financing District
and the Approval of the Redevelopment Plan and Tax Increment Financing Plan relating
thereto.
2.01. The Council hereby finds that the Victona Ponds Redevelopment Tax Increment Financing Distnct
is a redevelopment tax increment district.
2.02. The Council hereby finds that the modification of the Redevelopment Plan for Redevelopment Project
No. 1 and the establishment of the Victona Ponds Redevelopment Tax Increment Financing District and the approval
of the Redevelopment Plan and Tax Increment Financing Plan relating thereto, are intended and, in the judgement of this
Council, the effect of such actions will be, to provide an impetus for redevelopment in the public purpose and accomplish
certain objectives as specified in the Plans.
2.03. The Council further finds that the proposed development in the Victoria Ponds Redevelopment Tax
Increment Financing District as proposed, in the opinion of the Council, would not occur solely through private
investment within the reasonably foreseeable future and that the increased market value on 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 plan, therefore, the use of tax increment financing is deemed
necessary; that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and
that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the
development of the Victona Ponds Redevelopment Tax Increment Financing District by private enterprise.
2.04. The City elects to make a qualifying Local contnbution in accordance with Minnesota Statutes, Section
273.1399, subd. 6(d), in order to qualify the Victoria Ponds Redevelopment TIF District for exemption from state aid
losses set forth in Section 273.1399.
2.05. The Council further finds, declares and determines that the City made the above findings stated in
Section 2 and has set forth the reasons and supporting facts for each determination in writing, attached hereto a Exhibit
A.
Section 3. Approval of the Plans: Certification: Filing,
3.01. The establishment of the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment
Financing Plan for the Victoria Ponds Redevelopment Tax Increment Financing District are hereby approved and
adopted, and shall be placed on file in the office of the Economic Development Director. Approval of the
Redevelopment Plan and the Tax Increment Financing Plan does not constitute approval of any project or a
Redevelopment Agreement with any developer.
3.02. The City staff of the City are authorized to request certification of the Victoria Ponds Redevelopment
Tax Increment District from Hennepin County and to file the Plans with the State Department of Revenue.
3.03. The City staff of the City, the City's advisors and legal counsel are authorized and directed to proceed
with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this Council for its
consideration all further plans, resolutions, documents and contracts necessary for this purpose.
ATTEST:
Reviewed by administration:
Adopted b the City Council April 1, 1996
ivayor
Approved as to form and execution:
Z(4
City Attorney
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EXHIBIT 06-48
RESOLUTION #
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the
Victoria Ponds Redevelopment Tax Increment Financing District ("the District") as required pursuant to Minnesota
Statutes, Section 469.175, Subdivision 3 are as follows:
1. Finding that The Victoria Ponds Distract is a redevelopment district as defined in Minnesota Statutes, Section
469174, Subdivision 10.
The Victoria Ponds District consists of 4 parcels of property. The Victoria Ponds District consists of vacant,
unused, under used, inappropnately used, or infrequently used railyards, rail storage facilities or excessive or
vacated railroad rights-of-way
2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private
investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is
deemed necessary 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 distract permitted by the plan.
Due to the high cost of redevelopment on parcels currently occupied by substandard buildings, the limited
amount of commercial/industrial property for expansion adjacent to the existing project, the incompatible land
uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only
through assistance, in part, from tax increment financing.
A comparative analysis of estimated market values both with and without establishment of the Victona Ponds
Redevelopment Tax Increment Financing Distnct and the use of tax increments has been performed as
descnbed above. Such analysis is included in the Tax Increment Financing Plan and shows that the estimated
market value of the proposed development after discounting by the present value of the tax increment is
significantly greater than the increase in the market value estimated to result from any other development that
could be expected to occur without the use of tax increment after subtracting the present value of the projected
tax increments for the maximum duration of the district permitted by the plan. (See Cashflow in Appendix C
in the Tax Increment Financing Plan for the Victona Ponds Redevelopment Tax Increment Financing District).
3. Finding that the Tax Increment Financing Plan for the Victoria Ponds Distnct conforms to the general plan
for the development or redevelopment of the municipality as a whole.
The Tax Increment Financing Plan has been reviewed by the Planning Commission and been found by
resolution passed on March 6, 1996 to not be in conflict with the comprehensive plan of the City.
4. Finding that the Tax Increment Financing Plan for The Victoria Ponds Distnct will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment
Project No 1 by private enterprise.
The proposed development to be assisted by the Victona Ponds Redevelopment Tax Increment Financing
Distnct will result in redevelopment, as high quality development, housing development, and increased
employment and tax base within the City of St. Louis Park.
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