HomeMy WebLinkAbout23-25 - ADMIN Resolution - Economic Development Authority - 2023/11/20EDA Resolution No. 23 - 25
Approving a modification to the tax increment financing plan for the
4900 Excelsior Tax Increment Financing District
Whereas, the City of St. Louis Park, Minnesota (the “city”) and the St. Louis Park
Economic Development Authority (the “authority”) have established the 4900 Excelsior Tax
Increment Financing District (the “TIF district”), a redevelopment district within Redevelopment
Project No. 1 in the city, and the city and the authority have approved a tax increment financing
plan (the “TIF plan”) for the TIF district pursuant to the provisions of Minnesota Statutes,
Sections 469.174 through 469.1794, as amended (the “TIF act”); and
Whereas, the TIF district is administered by the authority; and
Whereas, pursuant to Section 469.1763, subdivision 2(d) of the TIF act, the authority
may elect to increase by up to ten percent (10%) the permitted amounts of expenditures for
activities located outside of the geographic area of the TIF district if such expenditures (a) are
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 of 1986, as amended
(the “code”); (b) do not exceed the qualified basis of the housing, as defined under
Section 42(c) of the code, less the amount of any credit allowed under Section 42 of the code;
and (c) are 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
Whereas, pursuant to Laws of Minnesota 2021, First Special Session, Chapter 14,
Article 9, Section 5 (the “special law”), in particular subdivision 1(c), the city and the authority
are authorized to transfer tax increment accumulated for housing and development purposes
under Section 469.1763, subdivision 2(b) or (d) of the TIF act, to the Affordable Housing Trust
Fund (the “trust fund”) established by the city; and
Whereas, the city and the authority have determined to amend the Budget (the
“budget”) set forth in the TIF plan to use up to 10% of the tax increment from the TIF district,
less any amount utilized for administrative expenses, and transfer such amount to the trust
fund for housing development purposes authorized by the special law; and
Whereas, pursuant to Section 469.175, subdivision 4(b) of the TIF act, a tax increment
financing plan may be modified without public hearing or the findings required to be made for
the original tax increment financing plan if the modification does not include (a) any reduction
or enlargement of the geographic area of the project or tax increment financing district; (b) an
increase in the amount of bonded indebtedness to be incurred; (c) a determination to capitalize
interest on debt if that determination was not a part of the original plan; (d) an increase in the
portion of the captured net tax capacity to be retained by the authority; (e) an increase in the
estimated cost of the project, including administrative expenses, to be paid or financed with tax
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increment from the district; or (f) the designation of additional property to be acquired by the
authority; and
Whereas, there has been presented before the board of commissioners of the authority
(the “board”) a proposed form of amendment to the TIF plan (the “amendment”), which
proposed amendment to the budget in the TIF plan does not increase the total estimated tax
increment expenditures, amount of bonded indebtedness, or capitalized interest and does not
make any other changes that require a new public hearing pursuant to Section 469.175,
subdivision 4 of the TIF act; and
Whereas, the proposed amendment is set forth in Exhibit A attached hereto; and
Whereas, the on the date hereof, the city council of the city will consider the proposed
amendment to the TIF plan; and
Now therefore be it resolved by the board of commissioners of the St. Louis Park
Economic Development Authority as follows:
1. The budget shall be amended as set forth in the amendment to the TIF plan.
2. The amendment to the TIF plan is hereby approved, subject to the approval of
the amendment by the city council. The board hereby transmits the amendment to the city
council for consideration.
3. Upon approval of the amendment to the TIF plan by the city council, staff of the
Authority are hereby authorized and directed to transmit a certified copy of this resolution to
the Auditor/Treasurer of Hennepin County, Minnesota, the Commissioner of Revenue of the
State of Minnesota, and the State Auditor, as required by Section 469.175, subdivision 4 of the
TIF act.
4. Authority staff, the authority’s advisors, and legal counsel are authorized and
directed to proceed with the implementation of the amendment to the TIF plan.
Reviewed for administration: Adopted by the Economic Development
Authority November 20, 2023
Karen Barton, executive director Nadia Mohamed, president
Attest
Melissa Kennedy, secretary
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