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HomeMy WebLinkAbout22-089 - ADMIN Resolution - City Council - 2022/06/06Resolution No. 22-089 Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of Beltline Station Tax Increment Financing District No. 2 within the redevelopment project, and a tax increment financing plan therefor 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 “Project”) within the City and have adopted a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for Beltline Station Tax Increment Financing District No. 2 (the “TIF District”), a renewal and renovation district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of Hennepin County, Minnesota (the “County Auditor”); and Whereas, on the date hereof, the Board of Commissioners of the Authority (the “Board”) approved the Redevelopment Plan Modification and the TIF Plan for the TIF District; and Whereas, certain written reports (the ''Reports") relating to the Redevelopment Plan Modification and the TIF Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the City Council and/or made a part of the City files and proceedings on the Redevelopment Plan Modification and the TIF Plan. The Reports, including the renewal and renovation qualification report prepared by LHB, Inc. on March 31, 2022 and planning documents, include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The City Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein; and Whereas, the City Council has reviewed the contents of the Redevelopment Plan 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; and DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Resolution No. 22-089 2 Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota as follows: Section 1. Findings for the Redevelopment Plan Modification for the Project. (a) The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the City Council reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The purposes and development activities set forth in the proposed Redevelopment Plan Modification are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole; and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification and the TIF Plan, including without limitation the development of a range of housing and promoting transit oriented development within the City. Section 2. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development and redevelopment of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF A ct be exercised by the City to provide financial assistance to the TIF District and the 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 exp ected 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 development to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the Project in terms of removal and/or renovation of substandard properties, housing density, transit-oriented development, increased housing options in the City, and increased tax base. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Resolution No. 22-089 3 (d) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan , as the development contemplated in the TIF Plan has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved . (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 Project by private enterprise because it will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life -cycle housing within the City; result in additional availability of housing units; eliminate and prevent blight and blighting factors within the Project and City; and help develop an underutilized site with substandard buildings in the City. (f) The TIF District is a renewal and renovation district under Section 469.174, subdivision 10a of the TIF Act. (g) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon the Reports, the reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (h) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 3. 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 and redevelopment that will create diverse housing opportunities, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that any private benefit 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 4. Approvals; Further Proceedings. (a) The TIF Plan for the TIF District and the Redevelopment Plan Modification are 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 County Auditor 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. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Resolution No. 22-089 4 (c) The County Auditor 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 the Redevelopment Plan Modification 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 June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5