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HomeMy WebLinkAbout01-004 - ADMIN Resolution - City Council - 2001/01/16RESOLUTION NO. 01-004 RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING PLAN FOR THE EXCELSIOR BOULEVARD TAX INCREMENT FINANCING DISTRICT AND ESTABLISHING THE PARK COMMONS TAX INCREMENT FINANCING DISTRICT (WITHIN REDEVELOPMENT PROJECT NO. 1) AND ADOPTING ITS TAX INCREMENT FINANCING PLAN THEREFOR. 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. The City and the St. Louis Park Economic Development Authonty ("EDA") have heretofore established Redevelopment Project No. 1 and adopted the Redevelopment Plan therefor. The City and Authonty have determined a need to modify the Redevelopment Plan for Redevelopment Project No. 1 by (a) modifying the Tax Increment Financing Plan for the Excelsior Boulevard Tax Increment Financing Distnct and (b) establishing the Park Commons Tax Increment Financing Distnct within Redevelopment Project No. 1 and adopting its Tax Increment Financing Plan therefor (the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 through 469.1081 and 469.174 through 469.179, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The City council held a public heanng regarding establishment of the Park Commons Tax Increment Financing Distnct on October 18, 1999, but elected not to approve a resolution establishing the distnct pending finalization of agreements with a developer. 1.03. The Council has investigated the facts relating to the Plans and has caused the Plans to be prepared. 1.04. The City has performed all actions required by law to be performed pnor to the adoption and approval of the proposed Plans, including, but not limited to, notification of Hennepin County and School Distnct No. 283 having taxing jurisdiction over the property to be included in Park Commons Tax Increment Financing Distnct, notice of a potential redevelopment distnct to the local county commissioner, a review of and wntten comment on the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.05. Certain wntten reports and studies (the "Reports") relating to the findings made in this resolution been prepared by staff, consultants and the developer and submitted to the Council and/or made a part of the City files and proceedings. The Reports are listed in Subsection 2-25 of the Plans. The Council hereby adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. Section 2. Findings for Modification of the Excelsior Boulevard Tax Increment Distnct. Resolution No. 01-004 -2- 2.01. The City has determined a need to eliminate certain parcels from the Excelsior Boulevard Tax Increment Financing Distnct, for inclusion in the Park Commons Tax Increment Financing District. 2.02. The City has held the public hearing and other procedures required by law in order to eliminate the designated parcels from the Excelsior Boulevard Tax Increment Financing District. Section 3. Findings for the Establishment of Park Commons Tax Increment Financing Distnct. 3.01. The Council hereby finds that Park Commons Tax Increment Financing District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1). 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future 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 Park Commons Tax Increment Financing Distnct permitted by the Tax Increment Financing Plan, that the Plans conforms 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 or redevelopment of Park Commons Tax Increment Financing Distnct by pnvate enterprise. 3 03. The City elects to make a qualifying local contnbution in accordance with Minnesota Statutes, Section 273.1399, subd. 6(d), in order to qualify Park Commons Tax Increment Financing Distnct for exemption from state aid losses set forth in Section 273.1399. 3.04. The City elects to calculate tax increment from the Park Commons Tax Increment Financing Distnct according to Minnesota Statutes, Section 469.177, subd. 3(a), under which fiscal disparities contnbutions are made from outside the distnct. 3.05. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth The reasons and supporting facts for the findings in this resolution are set forth the Plans and are summanzed in Exhibit A, attached to this resolution. Section 4. Approval and Adoption of the Plans 4.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Community Development Director. 4.02. The staff of the City, the City's advisors and legal counsel are authonzed and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Resolution No. 01-004 -3- 4.03 City staff is authorized to file a copy of the Plans with the Hennepin County Director of Property Taxation together with (a) a request to certify the original net tax capacity of the Park Commons Tax Increment Financing Distnct, as described in the Plans, and (b) a request to eliminate the parcels from the Excelsior Boulevard Tax Increment Financing District that are so designated for elimination in Appendix B to the Plans; and (c) a List of all properties within Park Commons Tax Increment Financing District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. Staff is authorized to file such documents at any time after the date of this resolution that staff determines is appropnate and in the best interests of the City, and is further authorized and directed to take any other actions and file any other documents required by law in connection with the TIF Plans. Reviewed for Administration: City Manager Attest: 5ICClerk Adopted by the City Council January 16, 2001 / Mayor i Resolution No. 01-004 -4- EXHIBIT A RESOLUTION # 01-004 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Park Commons Tax Increment Financing Distnct as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that Park Commons Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). Park Commons Tax Increment Financing District consists of 38 parcels, with plans to redevelop the area for mixed use purposes. Parcels consisting of 91 percent of the area of Park Commons Tax Increment Financing Distnct are occupied by buildings, streets, utilities, or other improvements and more than 81 percent of the buildings in Park Commons Tax Increment Financing Distnct, not including outbuildings, are, or have been previously found to be, structurally substandard to a degree requinng substantial renovation or clearance. The information supporting these findings is file at the City with the Community Development Director and is summarized in Appendix F of the Plans. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future 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 Park Commons Tax Increment Financing District permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the proposed development consists of the comprehensive redevelopment of a 14 -acre site in the City. Redevelopment requires assembly of land, relocation, demolition, site improvements, and construction of public improvements for a mixed use housing and redevelopment that will become the "town center" for the City of St. Louis Park. Such redevelopment is possible only with substantial public assistance from vanous sources, including grants from the Metropolitan Council and the Department of Trade and Economic Development. In determining the need for tax increment financing, the City reviewed the entire project costs and the studies referenced in Section 2-25 of the Plans. Those studies show that financing for the project is clearly infeasible without the assistance provided in the Plans and from numerous other public financing sources. Resolution No. 01-004 -5- The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in 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 TIF District permitted by the Plan: Before demolition commenced, this site consisted of substandard commercial buildings and aging substandard homes. Any redevelopment of the area, even on a smaller scale, would require public intervention to finance the substantial costs of conversion to new land uses. Therefore, the City reasonably determined that without tax increment assistance, market values were likely to decline or remain stable at the best. Even if some alternative development proposal may have been possible, the proposed development will be one the largest commercial and housing developments in the City's history, and the increased value created under the Plans would far exceed any alternative development that is conceivable. To illustrate this point, a comparative analysis of estimated market values both with and without establishment of Park Commons Tax Increment Financing District and the use of tax increments is included in Appendix D of the Plans. If all development proposed to be assisted with tax increment were to occur in Park Commons Tax Increment Financing Distnct, the total increase in market value would be up to $72,493,775. The present value of tax increments from Park Commons Tax Increment Financing District is estimated to be $25,803,861. The Council reasonably concludes that no development with a market value of greater than $46,689,914 would occur without tax increment assistance in this distnct within the foreseeable future. 3. Finding that the Tax Increment Financing Plan for Park Commons Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on January 3, 2001. The Planning Commission found that the Plan conforms to the City comprehensive plan, contingent on approval of the plan amendment by the Metropolitan Council. 4. Finding that the Tax Increment Financing Plan for Park Commons Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Redevelopment Project No. 1 by private enterprise. The project to be assisted by Park Commons Tax Increment Financing Distnct will result in the most significant opportunity for pnvate redevelopment in the City's recent history, permitting construction of a major new housing and commercial area at a critical site on Excelsior Boulevard.