HomeMy WebLinkAbout22-43 - ADMIN Resolution - Economic Development Authority - 2022/12/05
EDA Resolution No. 22-43
Resolution approving a modification to tax increment financing plan
for the Mill City 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 Mill City Tax Increment Financing District (the “TIF
District”), which is a redevelopment TIF District, within the Project Area, and adopted a Tax
Increment Financing Plan for the TIF District (the “TIF Plans”), pursuant 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 Authority
desires to amend the TIF Plan for the TIF District to provide for an administrative change to the
budget set forth therein (the “Amendment”);
Whereas, pursuant to Laws of Minnesota 2021, First Special Session, Chapter 14, Article
9, Section 5 (the “Special Law”), the City and the Authority are authorized to transfer tax
increment accumulated for housing and development purposes under Minnesota Statutes,
Section 469.1763, subdivision 2(b) or (d), to the Affordable Housing Trust Fund established by
the City.
Whereas, the Amendment does 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 Amendment. The Board of Commissioners finds
that the Amendment is 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 Amendment.
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
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EDA Resolution No. 22-43 2
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; (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; and (d) to assist
owner-occupied housing that meets the requirements of section 469.1761, subdivision 2. 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
expenditures as set forth in the Amendment. A summary of the modified intended uses for the
TIF District is attached as Exhibit A.
3. Approval of the Amendment. The Amendment is hereby approved in
substantially the form presented to the Authority and on file in the office of the Economic
Development Director. Authority staff, advisors and legal counsel are authorized and directed
to proceed with the implementation of the Amendment. Authority staff is hereby directed to
file a copy of this resolution and the Amendment 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 December 5, 2022
Karen Barton, executive director Margaret Rog, president
Attest:
Melissa Kennedy, secretary
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EDA Resolution No. 22-43 3
Exhibit A
City of St Louis Park, Minnesota
Mill City TIF District
TIF Plan Budget Summary
Original Amendment No. 1
March 20, 2000 December 2022
SOURCES
Tax Increment 11,500,000 11,500,000
Interest 100,000 100,000
TOTAL 11,600,000 11,600,000
USES
Land/Building Acquisition 1,000,000 1,000,000
Site Improvements/Preparation 2,200,000 2,200,000
Construction of Affordable Housing - 4,025,000
Utilties - -
Other Public Improvements 4,800,000 775,000
Administrative Costs (up to 10%)1,000,000 1,000,000
PROJECT COSTS TOTAL 9,000,000 9,000,000
Interest 4,300,000 2,600,000
PROJECT AND INTEREST COSTS TOTAL 13,300,000 11,600,000
DocuSign Envelope ID: 454D268E-2205-450E-B827-1AE9DCAE9088