HomeMy WebLinkAbout22-45 - ADMIN Resolution - Economic Development Authority - 2022/12/05EDA Resolution No. 22-45
Resolution approving a spending plan for certain tax increment
financing districts located in the City of St. Louis Park
Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park
Economic Development Authority (the “Authority”) as follows:
Section 1. Recitals.
1.01. The City of St. Louis Park, Minnesota (the “City”) and the Authority have previously
established the following tax increment financing districts located within the City and adopted
tax increment financing plans therefor, pursuant to Minnesota Statutes, Sections 469.001
through 469.047, as amended, and Minnesota Statutes, Sections 469.174 through 469.1794, as
amended (the “TIF Act”): the West End Tax Increment Financing District, the Victoria Ponds Tax
Increment Financing District, the Zarthan and 16th Street Tax Increment Financing District, the
Wolfe Lake Commercial Tax Increment Financing District, the Mill City Tax Increment Financing
District, the Park Commons Tax Increment Financing District, the Aquila Commons Tax Increment
Financing District, and the 4900 Excelsior Tax Increment Financing District (collectively, the “TIF
Districts”).
1.02. Section 469.176, subdivision 4n of the TIF Act (the “Temporary TIF Authority Act”)
authorizes the Authority to spend available tax increment from any existing tax increment
financing district, notwithstanding any other law to the co ntrary, to provide improvements,
loans, interest rate subsidies, or assistance in any form to private development consisting of
construction or substantial rehabilitation of buildings and ancillary facilities, if the following
conditions exist:
(1) Such assistance will create or retain jobs in the State of Minnesota, including
construction jobs;
(2) Construction commences before December 31, 2025;
(3) The construction would not have commenced before the dates specified above
without the assistance;
(4) Tax increments under the spending plan are spent by December 31, 2025; and
(5) The City Council of the City approves a written spending plan (after a duly noticed
public hearing) that specifically authorizes the Authority to take such actions.
1.03. The Authority has proposed to apply available tax increments from the TIF Districts
for various uses in accordance with the Temporary TIF Authority Act, and to that end has caused
to be prepared a spending plan for the TIF Districts (the “Spending Plan”).
1.04. The assistance authorized under the Spending Plan expressly includes but is not
limited to assistance for private development that provides for job creation, including
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construction jobs, and the development of various mixed-use developments located in the City
as described in more detail in the Spending Plan.
1.05. The City and the Authority expect to transfer unobligated tax increment in
accordance with the Temporary TIF Authority Act from each of the TIF Districts in the following
estimated amounts, subject to final adjustment by the City Finance Director upon receipt of tax
increment for such TIF Districts through December 31, 2022:
1.06. Assistance authorized and provided under the Spending Plan may constitute a
business subsidy as described in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended
(the “Business Subsidy Act”), which will require that the Board conduct a public hearing prior to
providing such financial assistance to a developer.
1.07. On the date hereof, the City Council will conduct a public hearing regarding the
Spending Plan in accordance with the Temporary TIF Authority Act and consider a resolution
approving the Spending Plan.
Section 2. Approval.
2.01. The Board of Commissioners further finds the Spending Plan is intended and, in the
judgment of the Board of Commissioners, its effect will be, to create an impetus for development
and redevelopment activities in the City, including, but not limited to, developing or redeveloping
blighted or underutilized sites, lands or areas within the City, providing necessary public
improvements for private development in the City, helping provide a range of housing options in
the City, supporting transit oriented development, and otherwise promoting certain public purposes
and accomplishing certain objectives as specified in the Spending Plan. The Board of Commissioners
finds that the projects described in the Spending Plan would not commence by December 31, 2025
without assistance as permitted by the Temporary TIF Authority Act and that assistance will
stimulate private development and the creation or retention of jobs in the state, including
construction jobs. The Board of Commissioners makes all the findings set forth in the Spending Plan,
which are incorporated herein by reference.
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2.02. The Board of Commissioners finds that the tax increments from the TIF Districts to
be transferred under the Spending Plan are not needed to pay obligations of the TIF Districts due
within the six months following such transfer and are not improperly retained, received, spent, or
transferred.
2.03. The Spending Plan is hereby approved and adopted and the Spending Plan shall be
placed on file in the office of the Economic Development Manager of the City. The Board of
Commissioners authorizes transferring all tax increments from the TIF Districts under the Spending
Plan to a segregated account by December 31, 2022 in the estimated amounts set forth above
provided that such amounts may be adjusted by the Finance Director upon final determination of
the unobligated tax increment based on receipt of tax increment through December 31, 2022 and
spending tax increments under the Spending Plan by December 31, 2025 for projects which
commence construction by December 31, 2025.
2.04. The Authority’s staff, advisors and legal counsel are authorized and directed to
identify potential uses which are in accordance with the Spending Plan for projects that are likely to
result in the most efficient and effective use of the identified funds, to proceed with the
implementation of the Spending Plan and to negotiate, draft, and prepare all further plans,
resolutions, documents and contracts necessary for this purpose for future approval and
determination of the necessary findings under the law by the Board of Commissioners.
2.05. The Board shall conduct a public hearing prior to providing financial assistance to
a developer or redeveloper under the Spending Plan if in the opinion of counsel to the Authority
such assistance constitutes a business subsidy under the Business Subsidy Act.
Section 3. Effective Date. This resolution shall be effective upon approval.
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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