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HomeMy WebLinkAboutResolution No. 2016-040 Establishing 66 West TIF District RESOLUTION NO. 2016-40 CITY OF EDINA HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA; ADOPTING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE SOUTHDALE 2 TAX INCREMENT FINANCING DISTRICT THEREIN; ESTABLISHING 66 WEST TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of Edina, Minnesota (the "City"), as follows: Section I. Recitals. 1.01. The Board of Commissioners of the Edina Housing and Redevelopment Authority (the "HRA") has heretofore established Southeast Edina Redevelopment Project Area and adopted a Redevelopment Plan therefor. It has been proposed by the HRA and the City that the City adopt a Modification to the Redevelopment Plan for Southeast Edina Redevelopment Project Area (the "Redevelopment Plan Modification"), adopt a Modification to the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District (the "TIF Plan Modification") therein„ and establish 66 West Tax Increment Financing District (the "District') therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification, the TIF Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.l 794, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The HRA and City have investigated the facts relating to the Plans and have caused the Plans to be prepared. 1.03. The HRA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Hennepin County and Independent School Districts No. 273 and 280 having taxing jurisdiction over properties included in the Districts, a review of and written comment on the Plans by the City Planning Commission, approval of the Plans by the HRA on April 5, 2016, and the holding of a public hearing upon published notice as required by law. 1.04. Certa;n written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The 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. 1.05. The City is not modifying the boundaries of Southeast Edina Redevelopment Project Area, but CITY OF EDINA 4801 West 50th Street•Edina,Minnesota 55424 www.EdinaMN.gov•952-927-8861 • Fax 952-826-0390 Resolution No. 2016-40 Page 2 Section 2. Findings for the Adoption and Approval of the Redevelopment Plan Modification. 2.01. The Council approves the Redevelopment Plan Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Redevelopment Plan; (b) the Redevelopment Plan, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Redevelopment Plan, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Adoption and Approval of the Southdale 2 TIF Plan Modification. 3.01 The Council hereby reaffirms the original findings for the District, namely that the when the District was established, it was established as an "economic development district" under Minnesota Statutes, Section. 469.174, subd. 12. 3.02. In addition, the City makes the following findings: (a) The TIF Plan Modification conforms to the general plan for development or redevelopment of the City as a whole. The reason for supporting this finding is that the TIF Plan Modification will generally complement and serve to implement policies adopted in the City's comprehensive plan. (b) The TIF Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Southeast Edina Redevelopment Project Area by private enterprise. The TIF Plan Modification will allow for the City to establish the District, and the development activities are necessary so that development and redevelopment by private enterprise can occur within Southeast Edina Redevelopment Project Area. (c) The City reaffirms the original findings of the Southdale 2 Tax Increment Financing District, namely that the development and redevelopment efforts, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and therefor the use of tax increment financing is deemed necessary. Section 3. Findings for the Establishment of the 66 West Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is a "housing district' under Minnesota Statutes, Section 469.174, Subd. I I of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future, that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Purpose. 4.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide housing opportunities, to Resolution No. 2016-40 Page 3 improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Plans. 5.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the HRA Executive Director. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the Edina Housing and Redevelopment Authority is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The Executive Director is further authorized and directed to file a copy of the Plans with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Dared: April 5, 2016 Attest: Debra A. Mangen, City Clerk James B. Hovland, Mayor Resolution No. 2016-40 Page 4 Council member '- lIA SO�) introduced the foregoing resolution and moved its adoption. The motion for the adoption of the resolution was duly seconded by Council member wfia k.bLtck and upon a vote being taken thereon, the followin voted in favor thereof: Council members: C" yd y (,t-��� r ala ry't and the following voted against the same: l 10 I STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of April 5, 2016, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of Debra A. Mangen, City Clerk Resolution No. 2016-40 Page 5 EXHIBIT A RESOLUTION NO. 2016-40 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for 66 West Tax Increment Financing District, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: I. Finding that 66 West Tax Increment Financing District is a housing district as defined in M.S., Section 469.174, Subd. I I. The 66 West TIF District consists of one parcel. The development will consist of approximately 39 units of affordable housing in the City. All or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 40 percent of the units/homes receiving assistance will have incomes at or below 60 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future:This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment and is intended for occupancy in part by low and moderate income persons. All of the units will be both rent and income restricted and require operating subsidy, which means that rental revenues are insufficient to make the project economically feasible without public assistance. The necessity of public assistance is true for most affordable rental housing developments in Minnesota. Due to the high cost of building affordable new housing in the City, this project is feasible only through assistance, in part, frorn tax increment financing. The affordable project also requires public assistance beyond tax increment. The developer has applied for and received an allocation of federal low income tax credits from the Minnesota Housing Finance Agency (MHFA). The City's expectation of providing assistance allowed this project to score high enough in the MHFA tax credit allocation system to receive the tax credits. Therefore, the tax increment assistance is also necessary in order to leverage the federal subsidy provided by low income tax credits. The developer has provided its project budget and financial projections (on file in City Hall) that demonstrate the need for tax increment assistance as described in this Plan. 3. Finding that the TIF Plan for 66 West Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for 66 West Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Southeast Edina Redevelopment Project Area by private enterprise. Through the implementation of the TIF Plan, the HRA and City will provide an impetus for residential development which is desirable or necessary for meeting housing needs of people with a variety of incomes and provide housing that would otherwise not be available.