HomeMy WebLinkAbout20-24 - ADMIN Resolution - Economic Development Authority - 2020/10/05EDA Resolution No. 20-24
Resolution approving a modification to tax increment financing
plans for the Eliot Park Tax Increment Financing District in
connection with pooling for affordable housing
Whereas, the City of St. Louis Park (the “City”) 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 Eliot Park Tax Increment Financing District (the “TIF
District”), a redevelopment TIF District, within the Project Area, and adopted a Tax Increment
Financing Plan for the TIF District (the “TIF Plan”), pursua nt 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 A uthority
desires to amend the TIF Plan for the TIF District 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 Board of Commissioners
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 Board of Commissioners hereby ratifies and confirms the findings made in
connection with the establishment of the TIF District.
2. Election to authorize certain expenditures for affordable housing. In
accordance with Section 469.1763, Subdivision 2(d) of the TIF Act, the City and 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) make public improvements directly related to the housing.
The Board of Commissioners hereby elects to authorize utilizing up to 35% of the tax increment
from the TIF District, less any amount utilized for administrative expenses, for such housing
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EDA Resolution No. 20-24 2
expenditures as set forth in the Amendments. A summary of the modified intended uses for the
TIF District is attached as Exhibit A.
3. Approval of the amendments. The Amendments are hereby approved in
substantially the form presented to the Authority and on file in the office of the Economic
Development Coordinator. 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 Taxpayer Services
Division of Hennepin County, the Office of the State Auditor and the Commissioner of Revenue.
Reviewed for administration: Adopted by the Economic Development
Authority October 5, 2020
Thomas K. Harmening, executive director Rachel Harris, president
Attest:
Melissa Kennedy, secretary
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EDA Resolution No. 20-24 3
Exhibit A
City of St Louis Park, Minnesota
The Eliot TIF District
TIF Plan Budget Summary
Original Amendment No. 1
May 6, 2013 October 2020
SOURCES
Tax Increment 9,825,365 9,825,365
Interest 982,537 982,537
TOTAL 10,807,902 10,807,902
USES
Land/Building Acquisition 1,000,000 100,000
Site Improvements/Preparation 2,000,000 745,740
Construction of Affordable Housing 3,400,000
Public Utilties 500,000 250,000
Other Qualifying Activities 1,904,624 908,884
Administrative Costs (up to 10%)982,537 982,537
PROJECT COSTS TOTAL 6,387,161 6,387,161
Interest 4,420,741 4,420,741
PROJECT AND INTEREST COSTS TOTAL 10,807,902 10,807,902
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