HomeMy WebLinkAboutResolution No. 2011-107 CITY OF COLUMBIA HEIGHTS
RESOLUTION 2011 -107
RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN
CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE
CBD REDEVELOPMENT PROJECT AND ESTABLISHING THE CITY -WIDE
SCATTERED SITE HOUSING TAX INCREMENT FINANCING DISTRICT
THEREIN AND ADOPTING A TIF 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 Board of Commissioners of the Columbia Heights Economic Development Authority
(the "EDA ") has heretofore established CBD Redevelopment Project and adopted a Downtown Central
Business District (CBD) Revitalization Plan therefor. It has been proposed by the EDA and the City that
the City adopt a Modification to the Downtown Central Business District (CBD) Revitalization Plan for
CBD Redevelopment Project (the "Downtown Central Business District (CBD) Revitalization Plan
Modification ") and establish the City -Wide Scattered Site Housing Tax Increment Financing District (the
"District ") therein and adopt a TIF Plan (the "TIF Plan ") therefor (the Downtown Central Business
District (CBD) Revitalization 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
469.090 through 469.1082 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act ") all as
reflected in the Plans, and presented for the Council's consideration.
1.02. The EDA and City have investigated the facts relating to the Plans and have caused the
Plans to be prepared.
1.03. The EDA 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 Anoka County and Independent School District No. 13 having taxing
jurisdiction over the property to be included in the District, a review of and written comment on the Plans
by the City Planning Commission on October 4, 2011, approval of the Plans by the EDA on October 10,
2011, 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 City is not modifying the boundaries of the CBD Redevelopment Project, but is
however, modifying the Downtown Central Business District (CBD) Revitalization Plan therefor.
Section 2. Findin.s for the Ado•tion and A•.roval of the Downtown Central Business District
(CBD) Revitalization Plan Modification.
2.01. The Council approves the Downtown Central Business District (CBD) Revitalization
Plan Modification, and specifically finds that: (a) the land within the Project area would not be available
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for redevelopment without the financial aid to be sought under this Downtown Central Business District
(CBD) Revitalization Plan; (b) the Downtown Central Business District (CBD) Revitalization 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 Downtown Central Business District
(CBD) Revitalization Plan, as modified, conforms to the general plan for the development of the City as a
whole.
Section 3. Findings for the Establishment of the City -Wide Scattered Site Housing Tax Increment
Financing District.
3.01. The Council hereby finds that the City Wide Scattered -Site Housing Tax Increment
Financing District is in the public interest and is a "housing district" under Minnesota Statutes, Section
469.174, Subd. 11 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 Plans conform to the general plan for
the development or redevelopment of the City as a whole; and that the Plans 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 deteithines 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 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 or home owner will
receive only the assistance needed to make this development financially feasible. As such, any private
benefits received by a developer or home owner 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 Deputy Clerk.
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 Anoka 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 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.
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5.04. The Deputy Clerk 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.
Offered By: Schmitt
Second By: Diehm
Roll Call: Ayes: Peterson, Diehm, Schmitt Nay: Nawrocki Absent: Williams
Passed this 10 Day of October, 2011
Mayor, Gary Peter-on
ATTEST:
\ CT✓ tir /a.tA
(Patricia Muscovitz MC cJ
City Clerk
(Seal)
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EXHIBIT A
RESOLUTION 2011 -107
The reasons and facts supporting the findings for the adoption of the TIF Plan for the City -Wide Scattered Site
Housing Tax Increment Financing District, as required pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3 are as follows:
I. Finding that the City - Wide Scattered Site Housing Tax Increment Financing District is a housing district as
defined in M.S., Section 469.174, Subd. 11.
The City -Wide Scattered Site Housing TIF District consists of 23 parcels. The development will consist of
single - family owner- occupied housing. All or a portion of which will receive tax increment assistance and
will meet income restrictions described in M.S. 469.1 761. At least 95% of the houses assisted with tax
increment will be initially sold to and occupied by persons with no more than 100% of median income for a
family of two and 115% of median income for families of three or more; or, if any units are rented, the
tenants will meet the rental income limits under Section 469.1761. Median income for owner - occupied
housing is the greater of the statewide median or the county median. For Anoka County, the median
income is $82,700 and the statewide median is $72,900 (year 2011). Therefore, the family of three or more
could earn up to $95,105 (115% of $82,700) and still qualify to live in the homes. 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 main purpose of the TIF plan is to encourage the redevelopment of foreclosed homes and the
development or redevelopment of for -sale housing that is affordable to personas who meet income
guidelines. The private sector has not invested in these homes and thus they have deteriorated to an extent
that they are inhabitable and require demolition and or /extensive rehabilitation. Due to the costs associated
with acquisition of a parcel with a home on it, environmental remediation, demolition, site improvements
and other qualifying improvements, makes the redevelopment of these housing units infeasible without
City assistance. The EDA and City have determined that it will be necessary to provide assistance to the
project(s) for various District costs, including a land write down and repayment of an interfund loan(s).
3. Finding that the TIF Plan for the City -Wide Scattered Site Housing 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 the City Wide Scattered Site 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 CBD Redevelopment Project by private enterprise.
Through the implementation of the TIF Plan, the EDA or City will provide an impetus for residential
development, which is desirable or necessary for increased population and an increased need for life -cycle
housing within the City.
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