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HomeMy WebLinkAboutResolution No. 2018-120 TIF Modification Southdale& Add W 76th Street TIF Dist CITY OF EDINA HENNEPIN COUNTY STATE OF MINNESOTA Councilmember introduced the following resolution and moved its adoption: RESOLUTION NO. 2018-120 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA; ADOPTING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE SOUTHDALE 2 TAX INCREMENT FINANCING DISTRICT THEREIN; AND ESTABLISHING THE WEST 76T" STREET 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") have heretofore established the Southeast Edina Redevelopment Project Area (the "Project Area") and adopted the Redevelopment Plan therefor. It has been proposed by the HRA and the City that the City adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for the Project Area, adopt a Modification to the Tax Increment Financing Plan (the "TIF Plan Modification") for the Southdale 2 Tax Increment Financing District (the "Southdale 2 District") therein, and establish the West 76`h Street Tax Increment Financing District (the "West 76`x' Street 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 469.1794, all inclusive, as amended, (the "Act") and Minnesota Session Laws — 2017, 1" Special Session, Chapter I — H.F. No. 1, Article 6, Section 16 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, Independent School District No. 280 and Independent School District No. 273 having taxing jurisdiction over the property to be included in Resolution 2018-120 Page 2 the Southdale 2 and West 76`h Street Districts, a review of and written comment on the Plans by the City Planning Commission on November 14, 2018, approval of the Plans by the HRA on November 15, 2018, and the holding of a public hearing upon published notice as required by law. 1.04. Certain 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 Council recognizes that, pursuant to Minnesota Statutes, Section 469.177, Subd. 3, clause b, there is a mandatory fiscal disparities contribution for the Southdale 2 District, an economic development district. 1.06. The City is not modifying the boundaries of the Project Area, but is modifying the Redevelopment Plan therefor to include activities related to the Southdale 2 and West 76`h Street Districts. 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 Southdale 2 District, namely that it is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12 of the Act. 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 Plan 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. (c) The City reaffirms 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. Resolution 2018-120 Page 3 Section 4. Findings for the Establishment of the West 76`h Street Tax Increment Financing District. 4.01. The Council hereby finds that the West 76`h Street District is in the public interest and is a "housing district" under Minnesota Statutes, Section 469.174, Subd. I I of the Act and Minnesota Session Laws — 2017, I S` Special Session, Chapter I — H.F. No. 1, Article 6, Section 16. 4.02 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 redevelopment or development of the West 76`h Street District by private enterprise. 4.03. 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 5. Public Purpose. 5.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop and area of the City which is already built up, to provide housing opportunities, to 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 the development financially feasible. As such, any private benefits received by a mall owner are incidental and do not outweigh the primary public benefits. Section 6. Approval and Adoption of the Plans. 6.01. 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. 6.02. 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. 6.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of the West 76`' Street 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 West 76`h Street District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 6.04. The Executive Director is further authorized and directed to file a copy of the Plans with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Resolution 2018-120 Page 4 Theotion f the adoption of the foregoing resolution was duly seconded by Council member9('( Q_ , and upon a vote being taken thereon, the following voted in favor thereof: r i e)�Ce f l g W ej) g=u-Ah and the following voted against the same: V'\a VlC�. Dated: November 20, 2018 AT-TEST: i De ra A. M g ity rk James B. Hovland, Mayor (Seal) 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 City Council Minutes is a true and correct copy of the Resolution duly adopted by the Edina City Council at its regular meeting of November 20, 2018, and as recorded in the Minutes of said regular meeting. WITNESS, my hand and seal of said City this day of 2018. City Clerk Resolution 2018-120 Page 5 EXHIBIT A RESOLUTION NO. 2018-120 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the West 76th Street Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: I. Finding that the West 76th Street Tax Increment Financing District is a housing district as defined in M.S., Section 469.174, Subd. 11. The West 76th Street Tax Increment Financing District (the "District") consists of one parcel within the City's the Southeast Edina Redevelopment Project Area. All or a portion of which will receive tax increment assistance and will meet income restrictions described in the Act and Minnesota Session Laws 2017, Chapter I, H.F. No. I, Article 6, Section 16. At least 20 percent of the units 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. This finding is supported by the fact that the development proposed in the TIF Plan is a housing district that meets the City's objectives for redevelopment and is intended for occupancy by low and moderate- income persons. Due to the high cost of building affordable new housing in the City, this project is feasible only through assistance, in part, from tax increment financing. All of the proposed housing units are intended to be both rent and income restricted, and affordable rental revenues alone are insufficient to make the project economically feasible without public assistance. The necessity of public assistance is true for most affordable housing developments in Minnesota. The affordable project also requires public assistance beyond tax increment. The developer has applied for public grants and an allocation of federal low-income housing tax credits from the Minnesota Housing Finance Agency (MHFA). The City's tax increment assistance is necessary in order to leverage the potential federal subsidy. The developer has provided the City its estimated project budget and financing projections. City staff and the City's advisors reviewed the information and have determined the information demonstrates the need for tax increment assistance as described in the TIF Plan. 3. Finding that the TIF Plan for the West 760, Street 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 on November 14, 2018 and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for the West 760, Street Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the 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 and necessary for meeting housing needs of people with a variety of incomes and provide housing that would otherwise not be available.