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HomeMy WebLinkAboutResolution 97-58 KESOLUTION 97-58 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION ESTABLISHING WITHIN THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT HOUSING TAX INCREMENT FINANCING DISTRICT NO. 2 AND ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN THEREFOR. 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 City has heretofore established the Central Business District Redevelopment Project and adopted the Redevelopment Plan therefor. It has been proposed that the City establish within the Central Business District Redevelopment Project Housing Tax Increment Financing District No. 2 ("Housing District No. 2") and adopt the related Tax Increment Financing Plan therefor (the "Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047; 469.090 through 469.1081; and 469.174 to 469.179, all inclusive, as amended, all as reflected in the Plan, and presented for the Council's consideration. 1.02. By resolution approved January 8, 1996, the City transferred the control, authority and operation of the Project from the Columbia Heights Housing and Redevelopment Authority ("HRA") to the Columbia Heights Economic Development Authority (the Authority). 1.03. The Council has investigated the facts relating to the Plan. 1.04. The City has performed all actions required by law to be performed prior to the adoption and approval of the proposed Plan, including, but not limited to, notification of Anoka County and School District No. 13 having taxing jurisdiction over the property to be included in Housing District No. 2, notice of a potential housing district to the local county commissioner, a review of and written comment on the Plan by the City Planning and Zoning Commission, and the holding of a public hearing upon published notice as required by law. 1.05. Certain written reports (the "Reports") relating to the Plan and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City files and proceedings on the Plan. The Reports include data, information and/or substantiation constituting or relating to (1) the "studies and analysis" on why the new Housing District No. 2 meets 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 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. 1.06. By resolution dated October 21, 1997, the Authority approved the TIF Plan and referred it to the Council for public hearing and consideration. Section 2. Finding8 for the Adoption and Approval of the Plan. 2.01. The Council hereby finds that the Plan, is 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 Plan, which are hereby incorporated herein. Section 3. Findings for the Establishment of Housing Tax Increment Financing District No. 2. 3.01. The Council hereby finds that Housing Tax Increment Financing District No. 2 is in the public interest and is a "housing district" under Minnesota Statutes, Section 469.174, subd. 11. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value on 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 District No. 2 permitted by the Tax Increment Financing Plan, that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of Housing District No. 2 by private enterprise. 3.03. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes, Section 273.1399, subd. 6(d), in order to qualify Housing District No. 2 for exemption from state aid losses set forth in Section 273.1399 subd. 6(c). 3.04. 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. Approval and Adoption of the Plan. 4.01. The Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, is hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Executive Director of the Authority. 4.02. The geographic boundaries of Housing District No. 2 are described in the Plan therefor and are incorporated herein by reference. 4.03. The staffofthe City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 4.04. The Auditor of Anoka County is requested to certify the original net tax capacity of Housing District No. 2, as described in the Plan, and to certify in each year therea~er 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 Housing District No. 2, for which building permits have been issued during the 18 months immediately preceding the adoption of. this resolution. The motion for the adoption of the foregoing resolution was made by Council member Ruettimann, and duly seconded by Council member Peterson, and upon a vote being taken thereon, the following voted in favor thereof: All Ayes and the following voted against the same: None. Dated: October 27, 1997 Carole Blowers, Secretary Pro Tem Or ~e'ph'SturdeVant EXHIBIT A RESOLUTION # 97-58 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Housing Tax Increment Financing District No. 2. ("Housing District No. 2") as required pursuant to Minnesota Statutes, Section 469-175, Subdivision 3 are as follows: Finding that Housing District No. 2 is a "housing district" as defined in Minnesota Statutes, Section 469.174, Subdivision 11. Housing District No. 2 consists of 1 parcel. The development will consist of a senior rental apartment building whose residents will meet one of the following income limitations: At least 20% of the units will be occupied by persOns with incomes at 50% or less of median gross income ($20,050 for households with 1 person or $22,900 for households with 2 people in 1997); At least 40% of the units will be occupied by persons with incomes at 60% or less of median gross income, ($24,060 for households with 1 person or $27,480 for households with 2 people in 1997); or At least 50% of the units will be occupied by persons with incomes at 80% or less of median gross income ($30,450 for households with 1 person or $34,800 for households with 2 people in 1997). The market value of non-assisted housing or commercial property will be less than 20 percent of the total fair market value of the planned improvements. Finding that the proposed development, in the opinion of the Council, wouM 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 the district permitted by the plan. Due to the high cost of building affordable new housing in the City and the cost of financing the proposed public improvements, this project is feasible only through assistance, in part, from tax increment financing. A comparative analysis of estimated market values both with and without establishment of Housing Tax Increment Financing District No. 2 and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in Housing District No. 2, the total increased market value would be up to $2,400,000. It is the Council's finding that no development with a market value of greater than $1,564,031 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition, site improvements and public utilities in the general area of Housing District No. 2. Finding that Housing District No. 2 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning and Zoning Commission on October 7, 1997. The Planning and Zoning Commission found that the Plan conforms to the general development plan of the City. Finding that Tax Increment Financing Plan for Housing District No. 2 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Central Business District Redevelopment Project by private enterprise. Through the implementation of the Plan, the City or Authority will provide an impetus for affordable senior residential development, desirable or necessary for increased population with the City.