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HomeMy WebLinkAbout20-082 - ADMIN Resolution - City Council - 2020/05/18Resolution No. 20-082 A Resolution approving a modification to the development program for Redevelopment Project No. 1, the establishment of Parkway Residences Tax Increment Financing District; and the adoption of a Tax Increment Financing Plan for the TIF District Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Redevelopment Project”) within the City, pursua nt to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1081, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a modification to the Development Program (the “Program Modification”) for the Redevelopment Project and a tax increment financing plan (the “TIF Plan”) for the establishment of Parkway Residences Tax Increment Financing District (the “TIF District”), a redevelopment district, within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), as described in a plan document presented to the City Cou ncil of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.174, subdivision 2 of the TIF Act, the proposed Program Modification and TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Board of Commissioners of Hennepin County, Minnesota (the “County”) at least 30 days prior to the date hereof; and Whereas, the City Council has reviewed the contents of the Program Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard. Now, therefore, be it resolved as follows: Section 1. Findings for the Program Modification for the Redevelopment Project . (a) It is hereby found and determined that within the Redevelopment Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (b) It is further specifically found and determined that (i) the land within the Redevelopment Project would not be made available for redevelopment without the public intervention and financial assistance described in the Program Modification; (ii) the Program Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the Redevelopment Project by private enterprise; and (iii) the Program Modification conforms to the general plan for the development of the City as a whole. Section 2. Findings for the Establishment of the TIF District. DocuSign Envelope ID: 98DE16B5-5C32-4BC4-8387-A024915687A2 Resolution No. 20-082 2 (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Redevelopment Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Redevelopment Project. (b) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and 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 expected 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. (c) 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 TIF District and the Redevelopment Project in terms of housing density, elimination of blight and blighting factors, and increased tax base. (d) The TIF Plan conforms to the general plan for development of the City as a whole, as the development has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved by ordinance. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Redevelopment Project by private enterprise because it will enable the construction of diverse housing options, retain naturally occurring affordable housing units, and eliminate blight and blighting factors within the Project and City. (f) The TIF District is a redevelopment district under Section 469.174, subdivision 10 of the TIF Act. (g) Reasons and facts supporting all the above findings are set forth in Appendix C of the TIF Plan and are incorporated herein by reference. The City Council has also relied upon reports and recommendations of its staff and consultants, as well as the personal knowledge of members of the City Council, in reaching its conclusions regarding the TIF Plan. Section 2. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development that will create diverse housing opportunities and retain naturally occurring affordable housing units, eliminate blighting factors, and improve the tax base. The City expressly finds that any private b enefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 3. Approvals; Further Proceedings. DocuSign Envelope ID: 98DE16B5-5C32-4BC4-8387-A024915687A2 Resolution No. 20-082 3 (a) The TIF Plan for the TIF District is hereby approved and adopted in substantially the form on file at City Hall. (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the Taxpayer Division Services Manager of the County and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. (c) The Taxpayer Division Services Manager of the County is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Reviewed for administration: Adopted by the City Council May 18, 2020 Thomas K. Harmening, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk DocuSign Envelope ID: 98DE16B5-5C32-4BC4-8387-A024915687A2