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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.