HomeMy WebLinkAbout22-04 - ADMIN Resolution - Economic Development Authority - 2022/03/21EDA Resolution No. 22-04
Resolution decertifying the Wayzata Boulevard Tax Increment
Financing District and approving termination of Purchase and
Development Agreement
Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park
Economic Development Authority (the “Authority”) previously established the Wayzata
Boulevard Tax Increment Financing District (the “TIF District”), a redevelopment district within
Redevelopment Project No. 1 (the “Project”) in the City; and
Whereas, the TIF District is administered by the Authority; and
Whereas, pursuant to the terms of the Purchase and Redevelopment Contract, dated
October 15, 2018 (the “Contract”), between the Authority and SLP Park Ventures LLC, a Minnesota
limited liability company (the “Redeveloper”), the Authority agreed to grant tax increment
financing assistance to the Redeveloper in the form of a tax increment revenue note (the “TIF
Note”) to reimburse the Redeveloper for certain public redevelopment costs in connection with
the acquisition of property within the TIF District (the “Redevelopment Property”) and the
construction thereon of a hotel and multifamily housing (the “Minimum Improvements”) within
the TIF District; and
Whereas, the Contract provided that payments of principal and interest on the TIF Note
would commence upon receipt by the Authority of tax increment from the Minimum
Improvements to be constructed on the Redevelopment Property; and
Whereas, the Redeveloper has not commenced construction of the Minimum
Improvements as of the date hereof, and has notified the Authority that it will not construct the
Minimum Improvements as set forth in the Contract; and
Whereas, the Authority intends to decertify the TIF District and terminate the Contract and
finds that such decertification and termination are in the best interest of the Authority and City,
because such actions will allow the creation of a housing tax increment financing district
encompassing the Redevelopment Property in which a multifamily housing development is
contemplated, thereby increasing housing options for City residents; and
Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park
Economic Development Authority as follows:
1. The Authority hereby approves the decertification of the TIF District and the
termination of the Contract.
2. The execution of the Termination of Purchase and Redevelopment Agreement with
the Redeveloper as presented to the Board of Commissioners is hereby in all respects approved,
subject to modifications that do not alter the substance of the transaction and that are approved
by the President and Executive Director, provided that execution of the Contract by such officials
shall be conclusive evidence of approval. Authority staff and officials are authorized to take all
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EDA Resolution No. 22-04 2
actions necessary to terminate the Contract including without limitation execution of any
documents necessary to terminate the Contract.
3. Authority staff is authorized and directed to transmit a copy of this resolution to
the Taxpayer Services Division Manager, as County Auditor, of Hennepin County, Minnesota (the
“County Auditor”) with instructions to decertify the TIF District as of the date hereof, it being the
intent of the City and Authority that any tax increment derived from the TIF District and collected
after the date hereof should be redistributed by the County Auditor to the taxing jurisdictions
within the TIF District as described below.
4. The TIF District has not generated any tax increment as of the date hereof, but if
any tax increment derived from the TIF District is generated and received by the Authority after
the date hereof, Authority staff is directed to return such tax increment to the County Auditor for
distribution to the taxing jurisdictions within the TIF District.
Reviewed for Administration: Adopted by the Economic Development
Authority March 21, 2022
Karen Barton, executive director Margaret Rog, president
Attest:
Melissa Kennedy, secretary
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