HomeMy WebLinkAbout20-19 - ADMIN Resolution - Economic Development Authority - 2020/07/06EDA Resolution No. 20-19
Resolution expressing support for the proposed use of tax increment financing
for a multifamily housing development by Project for Pride in Living
Whereas, the St. Louis Park Economic Development Authority (the “Authority”) and the
City of St. Louis Park, Minnesota (the “City”) have received a request to assist an entity to be
formed by Project for Pride in Living (the “Developer”) with certain costs of construction of an
approximately 60-unit affordable multifamily rental housing development in the City, to be
known as Union Park Flats (the “Project”); and
Whereas, a stated goal of the City’s Inclusionary Housing Policy is the creation of diverse
and affordable housing options for the community; and
Whereas, the success of the Developer’s application for low-income housing tax credits
from Minnesota Housing Finance Authority (“MHFA”) in connection with the Project is
predicated on local support of the proposal; and
Whereas, the Developer has requested that the Authority indicate its support of the use
of tax increment for the Project; and
Whereas, Authority staff has reviewed the proposal and recommends that the Board of
Commissioners support the use of tax increment financing assistance for the Project in an
amount not to exceed $600,000 should it be proven financially necessary in the event of a
subsequent funding shortfall confirmed by the City’s municipal advisor. Such assistance would
be provided through a pay-as-you-go note over a period of approximately 10 years.
Now therefore be it resolved that the Board of Commissioners supports the Project and
the use of tax increment financing for the Project; provided, however, that authorization of tax
increment financing for the Project is solely within the discretion of the City and of the Board of
Commissioners following all legally required proceedings pursuant to Minnesota Statutes,
Sections 469.174 to 469.1794, as amended, including (i) a public hearing and approval by the
City Council of the City; (ii) a determination, based on an analysis performed by the City’s
municipal advisor, that tax increment financing assistance is necessary for the Project; (iii)
verification of development financing need, based on an analysis performed by the City’s
municipal advisor, that substantiates that “but for” the use of tax increment financing, the
Project would be unable to proceed; and (iv) the negotiation of a development agreement
including (among other things) the conditions under which the City or the Authority will provide
financial assistance.
It is further resolved that the Board of Commissioners supports the Developer’s
application to MHFA for tax credits for the Project.
DocuSign Envelope ID: 9368CE2D-97C6-468C-BED0-FD078E57BF1A
EDA Resolution No. 20-19 2
Reviewed for Administration: Adopted by the Economic Development
Authority July 6, 2020
Thomas K. Harmening, executive director Rachel Harris, president
Attest:
Melissa Kennedy, secretary
DocuSign Envelope ID: 9368CE2D-97C6-468C-BED0-FD078E57BF1A