HomeMy WebLinkAbout19-16 - ADMIN Resolution - Economic Development Authority - 2019/12/02St. Louis Park Economic Development Authority
EDA Resolution No. 19-16
Resolution approving a modification to Tax Increment Financing
Plans for the Ellipse on Excelsior 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 and the St. Louis Park Economic
Development Authority (the “Authority”) have 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 Are a, 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 Authority
and City desire 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 Authority 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 Authority 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 Authority 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)
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EDA Resolution No. 19-16 2
make public improvements directly related to the housing. The Authority hereby elects to
authorize utilizing up to 35% of the tax increment from the TIF Districts, less any amount
utilized for administrative expenses, for such housing expenditures as set forth in the
Amendments.
3. Approval of the Amendments. Subject to approval by the City, the Amendments
are hereby approved in substantially the form presented to the Authority and on file in the
office of the Economic Development Director. Authority staff, advisors and legal counsel are
authorized and directed to proceed with the implementation of the Amendments. Authority
staff is hereby directed to file a copy of this resolution and the Amendments with the Co unty
Auditor of Hennepin County, the Office of the State Auditor and the Commissioner of Revenue.
Reviewed for administration: Adopted by the Economic Development
Authority December 2, 2019
Thomas K. Harmening, executive director Steven Hallfin, president
Attest:
Melissa Kennedy, secretary
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