HomeMy WebLinkAboutResolution 2001-72RESOLUTION NO. 2001-72
RESOLUTION ADOPTING A MODIFICATION TO TH'E DOWNTOWN
CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE
CBD REDEVELOPMENT PROJECT AND ADOPTING TI~. MODIFIED PLAN
FOR HOUSING REDEVELOPMENT TAX INCREMENT FINANCING
DISTRICT NO. 1 THEREIN.
BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights,
Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. The Board of Commissioners (the "Board") of the City of Columbia Heights Economic
Development Authority (the "EDA") has heretofore established the Central Business District (CBD)
Redevelopment Project and adopted the Downtown CBD Revitalization Plan therefore and established
Housing Redevelopment Tax Increment Financing District No. 1 and adopted the Tax Increment
Financing Plan therefore. It has been proposed that the City adopt a Modification to the Downtown CBD
Revitalization Plan (the "Downtown CBD Revitalization Plan Modification") for the CBD
Redevelopment Project and adopt a Modification to the Tax Increment Financing Plan (the "Tax
Increment Financing Plan Modification" or together with the Downtown CBD Revitalization Plan
Modification, the "Modifications") for Housing Redevelopment Tax Increment Financing District No. 1
(the "District "), all pursuant to and in conformity with applicable law, including Minnesota
Statutes, 469.090 through 469.1082, and Sections 469.174 to 469.179, inclusive as amended (the "Act"),
all as reflected in the Modifications, and presented for the Council's consideration.
1.02. The Council has investigated the facts related to the Modifications and has caused the
Modifications to be prepared.
1.03. The EDA and City have performed all actions required by law to be performed prior to
the adoption and approval of the proposed Modifications, including, but not limited to, notification of
Anoka County and Independent School District No. 13 having taxing jurisdiction over the property
included in the District, a review of and written comment on the Modified Plans by the City Planning
Commission, and the holding of a public hearing upon published notice as required by law.
1.04. Certain written reports (the "Reports") relating to the Modified Plans and to the activities
comemplated therein have heretofore been prepared by staff and made a part of the City and EDA files
and proceedings on the Modified Plans. The Reports include data, information and/or substantiation
constituting or relating to the bases 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 the CBD Redevelopment Project.
1.06. The City is not modifying the term of the District.
Section 2. Findings for the Approval of the Modifications
2.01. The Council hereby finds that the Modified Plans, are intended and, in the judgment of
this Council, the effect of such actions will be, to provide an impetus for development in the public
purpose and accomplish certain objectives as specified in the Modified Plans, which are hereby
incorporated herein.
Section 3. Findings for the Tax Increment Plan Modification
3.01. The Council hereby reaffirms the original findings for the District, namely that when the
District was established, it was established as a "redevelopment district" under Minnesota Statutes,
Section 469.174, Subd. 10 (afr0.
3.02. The Tax Increment 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 Tax Increment
Plan Modification will generally complement and serve to implement policies adopted in the City's
comprehensive plan.
3.03. The Tax Increment Plan Modification will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the development or redevelopment of the CBD Redevelopment
Project by private enterprise. The reason for supporting this finding is that the development activities are
necessary so that development and redevelopment by private enterprise can occur within the CBD
Redevelopment Project.
3.04. 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 therefore, the use if tax increment financing is deemed necessary.
3.05. The City of Columbia Heights elects to continue to calculate fiscal disparities for the
District in accordance with Minnesota Statutes, Section 469.177, subdivision 3, clause a, which means the
fiscal disparities contribution would be taken from outside the District.
Section 4. Public Purpose
4.01. The adoption of the Modifications conform in all respects to the requirements of the Act
and will help fulfill a need to develop an area of the State which is already built up, to improve the tax
base and to improve the general economy of the State and thereby serves a public purpose.
Section 5. Approval and Adoption of the Modifications; Filing.
5.01. The Modifications, 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 Deputy Clerk. Approval of the Modifications does
not constitute approval of any project or a development agreement with any developer.
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 Modifications 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-Anoka County is requested to certify the original net tax capacity of the
expansion parcels, as described in the Modifications, and to certify in each year thereafter the amount by
which the original net tax capacity has increased or decreased; and the City of Columbia Heights 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 Deputy Clerk is further authorized and directed to file a copy of the Modified Plans
with the Commissioner of Revenue.
Passed this 17th day of December 2001
Offered by:
Second by:
Roll Call:
Wyckoff
Williams
Ayes: Petersons, Szurek, Wyckoff, Williams, Nawrocki
Mayor Gary L Peterson
Attest:
Pal('icia Muscovitz~ Deputy City Clerk /
(Seal)
EXHIBIT A
RESOLUTION NO. 2001-72
The reasons and facts supporting the findings for the adoption of the Modified Plan for Housing
Redevelopment Tax Increment Financing District No. 1, as required pursuant to Minnesota Statutes, Section
469.175, Subdivision 3 are as follows:
1. Finding that Modified Housing Redevelopment Tax Increment Financing District No. 1 is a redevelopment
district as defined in M.S., Section 469.174, Subd. lO(a)(1).
The expansion of the District consists of 10 parcels, with plans for redevelopment of the housing stock in
the area. Thc expansion to the district is a scattered site expansion and each parcel in the expansion is
occupied by buildings, utilities, or other improvements of greater than 15percent and more than 50 percent
of the buildings on each parcel in the expansion of the district, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance (See Appendix D of the TIF plan).
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 and that the
increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the maximum
duration of Housing Redevelopment Tax Increment Financing District No. 1 permitted by the Plan.
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 redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the
high cost of acquisition and redevelopment on the parcels currently occupied by substandard buildings, the
limited amount of residential property for expansion adjacent to the existing properties, and the cost of
financing the proposed improvements, this project is feasible only through assistance, in part, from tax
increment financing.
The increased market value of the properties that could reasonable be expected to occur without the use of
tax increment financing would be less than the increase in market value estimated to result from the
proposed redevelopment after subtracting the present value of the projected tax increments for the
maximum duration of the TIF District permitted by the Plan: The City supported this finding on the
grounds that the cost of site acquisition and site improvements add to the total redevelopment cost.'
Historically, acquisition and site improvement costs in this area have made redevelopment infeasible
without tax increment assistance. The City reasonably determines that no other redevelopment of similar
scope is anticipated on these properties without substantially similar assistance being provided for
redevelopment.
A comparative analysis of estimated market values both with and without the inclusion of the additional
parcels within the District and the use of tax increments has been performed as described above. If all
development which is proposed, with respect to the expansion parcels, to be assisted with tax increment
were to occur in the District, the total increase in market value would be up to $1,620,000. The present
value of tax increments from the expansion parcels within the District is estimated to be $144,674. It is the
Council's finding that no development with a market value of greater than $819,126 would occur without
tax increment assistance in this district within 19 years. This finding is based upon evidence from general
past experience with the high cost of acquisition and site improvements in the general area of the District
(see Cashflow in Appendix C of the TIF Plan).
Finding that the Tax Increment Financing Plan for Housing Redevelopment Tax Increment Financing
District No. 1 conforms to the general plan for the development or redevelopment of the municipality as a
whole.
The Planning Commission reviewed the Plan and found that the Plan conforms to the general development
plan of the City.
Finding that the Tax Increment Financing Plan for Housing Redevelopment Tax Increment Financing
District No. 1 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for
the development or redevelopment of CBD Redevelopment Project by private enterprise.
The project to be assisted by the District will result in the renovation of substandard properties, increased
tax base of the State and add a high quality development to the City.
Through the implementation of the Plan, the City will increase the availability of safe and decent life-cycle
housing in the City.