HomeMy WebLinkAbout19-152 - ADMIN Resolution - City Council - 2019/12/02Resolution No. 19-152
Resolution approving a modification to Tax Increment Financing
Plans for the Wolfe Lake Commercial Tax Increment Financing
District in connection with Pooling for Affordable Housing
Whereas, the City of St. Louis Park (the “City”) has previously established
Redevelopment Project No. 1 (the “Project Area”) and adopted a Redevelopment Plan therefor,
as amended (the “Redevelopment Plan”). The City has also established the Ellipse on Excelsior
Tax Increment Financing District (a redevelopment district) and the Wolfe Lake Commercial Tax
Increment Financing District (together, the “TIF Districts”) within the Project Area, and adopted
a Tax Increment Financing Plan for each of the TIF Districts (the “TIF Plans”), pursuant to
Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”);
Whereas, in connection with making an election to authorize certain expenditures for
affordable housing pursuant to Section 469.1763, Subdivision 2(d) of the TIF Act, the City
desires to amend the TIF Plans for the TIF Districts to provide for administrative changes to the
budgets set forth therein (the “Amendments”);
Whereas, the Amendments do not increase the total estimated tax increment
expenditures, amount of bonded indebtedness, or capitalized interest, or make any other
changes that would require a new public hearing pursuant to Section 469.175, subd. 4 of the
TIF Act.
Now, therefore, be it resolved as follows:
1. Findings for the Adoption of the Amendments. The Council finds that the
Amendments are intended to carry out the objectives of the Redevelopment Plan for the
Project Area, to create an impetus for the construction of decent, safe and sanitary housing for
persons of low and moderate income by better utilizing blighted, polluted and underutilized
land and enhancing the tax base of the City, and to otherwise promote certain public purposes
and accomplish certain objectives as specified in the Redevelopment Plan, as modified, and in
the Amendments.
The Council hereby ratifies and confirms the findings made in connection with the
establishment of the TIF Districts.
2. Election to Authorize Certain Expenditures for Affordable Housing. In accordance
with Section 469.1763, Subdivision 2(d) of the TIF Act, the City may elect to increase by up to
10% the permitted amount of expenditures for activities located outside the geographic area of
any tax increment financing district, provided that the expenditures (a) be used exclusively to
assist housing that meets the requirement for a qualified low-income building, as that term is
used in section 42 of the Internal Revenue Code; (b) not exceed the qualified basis of the
housing, as defined under section 42(c) of the Internal Revenue Code, less the amount of any
credit allowed under section 42 of the Internal Revenue Code; and (c) be used to: (i) acquire
and prepare the site of the housing; (ii) acquire, construct, or rehabilitate the housing; or (iii)
make public improvements directly related to the housing. The Council hereby elects to
authorize utilizing up to 35% of the tax increment from the TIF Districts, less any amount
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Resolution No. 19-152 2
utilized for administrative expenses, for such housing expenditures as set forth in the
Amendments.
3. Approval of the Amendments. The Amendments are hereby approved in
substantially the form presented to the City and on file in the office of the Economic
Development Director. City staff, advisors and legal counsel are authorized and directed to
proceed with the implementation of the Amen dments. City staff is hereby directed to file a
copy of this resolution and the Amendments with the County Auditor of Hennepin County, the
Office of the State Auditor and the Commissioner of Revenue.
Reviewed for administration: Adopted by the City Council December 2, 2019
Thomas K. Harmening, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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