Loading...
HomeMy WebLinkAbout09-136 - ADMIN Resolution - City Council - 2009/10/190 CITY OF ST. LOUIS PARK HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 09-136 RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND APPROVING A MODIFIED TAX INCREMENT FINANCING PLAN FOR THE ELMWOOD VILLAGE 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 Elmwood Village Tax Increment Financing District (the "TIF 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 "TIF Plan Modification" or together with the Redevelopment Plan Modification, the "Modifications") for the TIF 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 (the "County") and Independent School District No. 283 (the "School District") having taxing jurisdiction over the property included in the TIF District, a review of and written comment on the Plans by the City Planning Commission on August 5, 2009, approval of the Plans by the EDA on October 19, 2009, and the holding of a public hearing upon published notice as required by law. 410 1.04. The City is not modifying the boundaries of the Project Area. Resolution No. 09-136 -2- Section 2. Findings for the Modifications 2.01. The Council hereby reaffirms the original findings for the TIF District, namely that the when the TIF District was established, the Elmwood Village Tax Increment Financing District was established as an renovation and renewal tax increment financing district. In addition, the City makes the following findings: 2.02. It is found and determined, and it is the reasoned opinion of the City, that: (i) The proposed redevelopment described in TIF Plan Modification would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The major purpose of the TIF Plan Modification is to authorize additional expenditures for improvements of intersections of Highway 7, Wooddale Avenue and 36th Avenue. The development originally proposed for the TIF District has mostly occurred or in process under proposed contracts However, such redevelopment is threatened by current traffic congestion and pedestrian safety issues at the above-mentioned intersections. Such problems are confirmed by traffic studies for the last portion of the TIF District still to be developed, known as Wooddale Pointe. Without investment of public funds to ameliorate these current and future traffic issues, the City's long-term investment in redevelopment of both the property within the TIF District, and in the adjacent portions of Redevelopment Project No. 1, will be impaired. By addressing these issues through the development of a grade separated interchange, deterioration of existing redevelopment within the TIF District will be prevented, and future redevelopment efforts in the Project area --that would otherwise be rendered impossible by severe traffic problems --will be feasible. (ii) 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 proposed additional high-density developments after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan Modification. As noted above, redevelopment of most sites assisted by tax increment from the TIF District is completed or are in process. The City reaffirms the original findings that virtually no redevelopment of those sites would have occurred (or will be completed, in the case of Wooddale Pointe) without tax increment assistance, which means no higher market values would have been created. Further, without resolving the serious traffic issues existing within the TIF District, it is unlikely that any future high-quality development would occur, and therefore it is not expected that there would be any increase in the market value of sites within the Project area, which may be assisted to the extent permissible under pooling rules) absent the use of tax increment financing. Private developers would likely not be interested in developing sites for any use if these sites experience insufficient traffic flow, and would find such sites particularly ill-suited for mixed-use housing and retail purposes. Furthermore, without resolution of the traffic concerns, it is possible that the existing market value of existing developments within the TIF District could decline, as many of these existing developments are mixed-use facilities including a housing component, and potential residents might be reluctant to live in a location suffering from serious congestion. Resolution No. 09-136 -3- (iii) The TIF Plan Modification conforms to the general plan for the redevelopment of the Ciry as a whole. The TIF Modification was reviewed and commented upon by the City's Planning Commission on August 5, 2009, and was approved by the Commission on that same date. (iv) The TIF Plan Modification will afford maximum opportunity, C012SiStellt with the sound needs of the City as a whole, for the redevelopment of the Project by private enterprise. The TIF Plan Modification will allow the development of a grade separated interchange at Highway 7 and Wooddale Avenue which will alleviate traffic congestion issues in the area. The County is planning to construct a light rail corridor and station that will be located at the intersection of' Wooddale Avenue and West 36th Street to service existing and planned high density uses. Without improvements to existing traffic issues, traffic studies indicate that the Wooddale/ Highway 7 intersection will be nonfunctioning at the time light rail service begins. Completion of this major public improvement project will make the TIF District and surrounding Redevelopment Project Area more attractive to private developers of additional high-density development. 2.03. The Modifications do not change the classification or boundaries of the TIF District. The TIF District remains classified as a renewal and renovation district under Section 469.174, subd. l0a of the Act (as of the date of request for certification). 2.04. Laws of Minnesota 2009, Chapter 88, Article 5, Section 19 (the "Special Law") authorized the City and EDA to extend the duration of the TIF District by up to seven years (through 2029), if the Special Law is approved by the City, County, and School District. 2.05. The City Council has heretofore approved the Special Law and made the finding required by the Special Law by Resolution No. 09-114, approved August 17, 2009, and the School District has approved the Special Law on September 29, 2009. Contingent upon final approval by the County, the term of the TIF District is extended to 2029, 22 years after the receipt of the first tax increment. Section 3. Public Purpose 3.01. The adoption of the Modifications conforms in all respects to the requirements of the Act and will help fulfill a need to redevelop an area of the State which was originally characterized by blight and blighting conditions, will help finance critical transportation improvements, and protect and enhance redevelopment of the TIF District and the Project as described above. These public purposes and benefits exceed any benefits expected to be received by private developers, because most of the new expenditures described in the TIF Plan Modification represent investment in public infrastructure, and any developers receive direct assistance only in the amount needed to make the proposed development financially feasible. Resolution No. 09-136 -4- Section 4. Approval and Adoption of the Modifications; Filing 4.01. The Modifications are hereby approved, contingent upon approval of the Special Law by the County. The Modifications 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. Upon approval of the Special Law by the County, City staff is authorized to file the Modifications with the Commissioner of Revenue, the Office of the State Auditor and the Hennepin County Auditor. 4.03. City staff, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Modifications and for this purpose to negotiate, draft, prepare and present to this Council for its consideration all further modifications, resolutions, do- u -nts and contracts necessary for this purpose. Review d. fo Administration City Ma Attest: a er City Clerk Adopte the City Council October 19, 2009 Mayor