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HomeMy WebLinkAbout03-077 - ADMIN Resolution - City Council - 2003/07/07RESOLUTION NO. 03-077 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING THE WOLFE LAKE COMMERCIAL TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A 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 Board of Commissioners (the "Board") of the City of St. Louis Park (the "EDA") has heretofore established Redevelopment Project No. 1 and adopted a Redevelopment Plan therefor It has been proposed by the EDA and the City that the City adopt a Modification to the Redevelopment Plan for Redevelopment Project No 1 (the "Redevelopment Plan Modification") and establish the Wolfe Lake Commercial Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the, the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469 090 to 469.1082, Sections 469.124 to 469.134, and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration 1 02 The City has investigated the facts relating to the Plans and has caused the Plans to be prepared 1.03. The City has performed all actions required by law to be performed pnor to the establishment of the Distnct and the adoption and approval of the proposed Plans, including, but not limited to, notification of County of Hennepin and Independent School District No. 283 having taxing jurisdiction over the property to be included in the Distnct, 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. 1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and 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. 1.05 The City is not modifying the boundaries of Redevelopment Project No 1. Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public interest and accomplish certain objectives as specified in the Plans, which are hereby incorporated herein Resolution No. 03-077 -2- Section 3. 1 Findings for the Establishment of the Wolfe Lake Commercial Tax Increment Financing District. 3.01. The Council hereby finds that the Distnct 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 the District permitted by the TIF Plan, 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 or redevelopment of the District by pnvate enterpnse. 3.03. 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 each determination in writing, attached hereto as Exhibit A 3.04 The City elects to calculate fiscal dispanties for the Distnct in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the Distnct Section 4. Public Purpose 4.01. The adoption of the Plans conforms in all respects to the requirements of the Act. The Plans will help remove substandard buildings, facilitate redevelopment that will create new commercial uses, provide employment opportunities, and improve the tax base. The City expressly finds that any pnvate benefit to be received by the developer is incidental, as the tax increment assistance is provided solely to make the redevelopment financially feasible and thus produce the public benefits descnbed. Therefore, the City finds that the public benefits of the Plans exceed any private benefits. Section 5. Approval and Adoption of the Plans. 5.01. 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 Economic Development Coordinator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized 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. 5 03 The Auditor of Hennepin County (the "Auditor") is requested to certify the original net tax capacity of the Distnct, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the • Resolution No. 03-077 -3- City is authorized and directed to forthwith transmit this request to the Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued dunng the 18 months immediately preceding the adoption of this resolution 5.04 The Economic Development Coordinator is further authonzed and directed to file a copy of the Plans with the Commissioner of the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. Reviewed for Administration: ATTEST: 0 CityylC1erG k 9 . kt iepo Adopted by the City Council July 7, 2003 (Seal) Resolution No 03-077 i -4- RESOLUTION NO. 03-077 EXHIBIT A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the Wolfe Lake Commercial Tax Increment Financing Distnct, as required pursuant to Minnesota Statutes, Section 469 175, Subdivision 3 are as follows: 1 Finding that the Wolfe Lake Commercial Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469 174, Subd. 10(a)(1) The District consists of three full parcels and a portion of a fourth parcel, with plans to redevelop the area for commercial purposes At least 70 percent of the area in the parcels in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F of the TIF Plan.) 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 the Wolfe Lake Commercial Tax Increment Financing District permitted by the TIF 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 site is occupied by a substandard building, and is charactenzed by significant soil problems The proposed development requires demolition of the existing structure and construction of an approximately 10,000 square -foot commercial building on part of the site, and an approximately 55,000 square -foot office building on another portion of the site. The City has analyzed a proforma submitted by the developer, which, in the City's opinion, demonstrates that the cost of demolition, soil correction, and site improvements make the proposed redevelopment infeasible without the tax increment assistance provided under this plan. The developer has owned the property for some time, but has further represented to the City that it would not proceed with the redevelopment described above absent tax increment assistance. 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 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 TIF Plan• This finding is supported by the fact that the site is now occupied by a substandard building that has long been owned by the developer. The only way that the market value of the site would increase is through substantial redevelopment similar to that proposed in this plan. Any such redevelopment would need to address the same demolition, relocation and soil correction costs that confront the proposed developer. Therefore, the City concludes as fo llows: Resolution No. 03-077 -5- a The City's estimate of the amount by which the market value of the site will 0 increase without the use of tax increment financing is $0. b. If all development which is proposed to be assisted with tax increment were to occur in the Distnct, the total increase in market value would be up to $8,225,964 • c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $1,153,025. (See Appendix G in the TIF Plan) d Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $7,072,939 (the amount in clause b less the amount in clause c) without tax increment assistance. 3 Finding that the Tax Increment Financing Plan for the Wolfe Lake Commercial Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4 Finding that the Tax Increment Financing Plan for Wolfe Lake Commercial 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 the Distnct will result in the preservation and enhancement of the tax base, the redevelopment of substandard areas, improvement of public safety, and provide employment opportunities in the City.