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HomeMy WebLinkAbout08-049 - ADMIN Resolution - City Council - 2008/04/07RESOLUTION NO. 08-049 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND ADOPTING A TAX INCREMENT FINANCING PLAN FOR VICTORIA PONDS TAX INCREMENT FINANCING DISTRICT THEREIN. 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 St. Louis Park Economic Development Authority (the "EDA") has heretofore established Redevelopment Project No. 1 (the "Project") and adopted the Redevelopment Plan therefor and established the Victoria Ponds Tax Increment Financing District (the "District ") and adopted the Tax Increment Financing Plan therefor. It has been proposed that the City adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for the Project and adopt a Modification to the Tax Increment Financing Plan (the "Tax Increment Plan Modification" or together with the Redevelopment Plan Modification, the "Modifications") for the District, all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, inclusive as amended (the "Act"), all as reflected in the Modifications, and presented for the Council's consideration. 1.02. The Council has investigated the facts related to the Modifications and has caused the Modifications to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the adoption and approval of the proposed Modifications, including, but not limited to, notification of Hennepin County and Independent School District No: 283 having taxing jurisdiction over the property included in the District, and the holding of a public hearing upon published notice as required by law. 1.04. The City is not modifying the boundaries of the Project. Section 2. Findings for the Modifications 2.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the Act be exercised by the City to provide public financial assistance to the Project. 2.02. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the Modifications could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is necessary. 2.03. The proposed public improvements to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the Project in terms of the redevelopment of underdeveloped, environmentally contaminated property. Resolution No. 08-049 -2- 2.04. The Tax Increment Plan Modification conforms to the general plan of development of the City as a whole. 2.05. The Tax Increment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the Project by private enterprise. 2.06. This modification does not change the classification or boundaries of the District. The District remains classified as a redevelopment district under Section 469.174, subd. 10(a)(2) of the Act (as of the date of request for certification). 2.07. Reasons and facts supporting the above findings are set forth in Exhibit A hereto. The Council has also relied upon the reports and recommendations of its staff and consultants as well as the personal knowledge of members of the Council in reaching its conclusions regarding the Modifications. Section 3. Public Purpose 3.01. The adoption of the Modifications conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 4. Approval and Adoption of the Modifications; Filing. 4.01. The Modifications are hereby approved, and shall be placed on file in the office of the City Clerk. Approval of the Modifications does not constitute approval of any project or a development agreement with any developer. 4.02. The staff of the City are authorized to file the Modifications with the Commissioner of Revenue, the Office of the State Auditor and the Hennepin County Auditor. 4.03. The staff of the City, the City's advisors and legal counsel are authorized and di : to proceed with the implementation of the Modifications and for this purpose to negotiate, aft, pre • are and present to this Council for its consideration all further modifications, resolutions, ocumen and contracts necessary for this purpose. Revi ed o Administration Ci Attest: City Clerk Adopt by the City Council April 7, 2008. r (8(4 Resolution No. 08-049 -3- EXHIBIT A Statement of Facts Supporting Findings The reason for the Tax Increment Plan Modification is solely to provide budgetary authority to utilize the increased tax increments expected to be generated through the life of the District, and to modify the budget to reflect actual project activity to date and expected project activity until decertification. The specific development to be assisted is an office building on environmentally contaminated land within the Project. The redeveloper has requested that the EDA reimburse land acquisition costs for the office building property. The City has determined that the land acquisition costs have been properly incurred by the redeveloper. The cost of acquisition, if assumed by the redeveloper in addition to the extraordinary costs of environmental mitigation necessary to redevelop the property, would impair the redeveloper's ability to lease or sell the office building at a fair market value. Therefore, the City believes that, absent the tax increment assistance for the land acquisition, redevelopment of this property would be unlikely to occur in the reasonably foreseeable future.