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HomeMy WebLinkAbout25-035 - ADMIN Resolution - City Council - 2025/02/18 Resolution No. 25-035 Approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of the Terasă Tax Increment Financing District within the redevelopment project, and a tax increment financing plan therefore 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 the Terasă Tax Increment Financing District (the “TIF district”), a housing 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 2a of the TIF act, notice of the proposed TIF district was presented to the commissioner of Hennepin County, Minnesota (the “county”) representing the area to be included in the TIF district at least 30 days before the publication of the notice of public hearing; 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 Auditor/Treasurer of the county (the “county auditor”); and Whereas, on February 3, 2025, the city council held a duly noticed public hearing on the redevelopment plan modification and establishment of the TIF district, at which the views of all interested parties were heard; 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, the city council has investigated the facts relating to the plans and certain information and material (collectively, the “materials”) relating to the TIF plan and to the activities contemplated in the TIF district have heretofore been prepared and submitted to the city council and/or made a part of the city files and proceedings on the TIF plan. The materials include the tax increment application made, project pro forma financial statement, project sources and uses and other information supplied by Terasă, LLC (the “developer”) as to the activities contemplated therein, the items listed under the heading “Supporting Docusign Envelope ID: 1D2AB05E-3719-4AF9-8577-42C6497F2592 Documentation” in the TIF plan, and information constituting or relating to (1) why the assistance satisfies the so-called “but for” test and (2) the basis for the other findings and determinations made in this resolution. The council hereby confirms, ratifies and adopts the materials, 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, 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 therefore. 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, including without limitation the development of affordable housing and the provision of a range of housing options 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 of the project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF act be exercised by the city to provide financial assistance to the TIF district and the project. (b) The TIF district is a housing district within the meaning of section 469.174, subdivision 11 of the TIF act because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter Docusign Envelope ID: 1D2AB05E-3719-4AF9-8577-42C6497F2592 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. The Developer has represented that at least 20% of the rental housing units will be rented to and occupied by individuals or families whose income is not greater than 50% or less of area median income and that no more than 20% of the square footage of buildings in the development that receive assistance from tax increments will consist of commercial, retail, or other nonresidential uses. (c) 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 expected to occur solely through private investment within the reasonably foreseeable future. (d) The proposed development to be financed in part through tax increment financing is necessary to permit the city to realize the full potential of the project in terms of housing density, increased housing options in the city, and increased tax base. (e) 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 the development contemplated in the TIF district is in accordance with the existing zoning or approved zoning variances for the property. (f) 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 affordable housing units; eliminate and prevent blight and blighting factors within the project and city; and help develop an underutilized site in the city. In addition, the TIF plan will help the city and the Authority work towards the goals of providing more affordable housing units in the city. (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. (h) The city elects to retain all of the captured tax capacity to finance the costs of the TIF district and the project and elects to delay the receipt of the first increment as set forth in the TIF plan. Pursuant to Minnesota Statutes, Section 469.177, Subd. 3, the city elects to calculate fiscal disparities under clause (b) (inside). 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 that will create diverse housing opportunities and increase the number and availability of affordable housing units in the city, 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 Docusign Envelope ID: 1D2AB05E-3719-4AF9-8577-42C6497F2592 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. Approval of the TIF plan does not constitute approval of any project or a development agreement with any developer. (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. (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 February 18, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Docusign Envelope ID: 1D2AB05E-3719-4AF9-8577-42C6497F2592