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HomeMy WebLinkAbout2017-77CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA Council member Buesgens introduced the following resolution and moved its adoption: RESOLUTION NO. 2017-77 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR THE DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT PROJECT, ESTABLISHING THE 47TH AND GRAND 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 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 the Downtown Central Business Redevelopment Project (the "Project ") and adopted a Development Program therefor. It has been proposed that the City adopt a Modification to the Development Program (the "Development Program Modification ") for the Project, establish the 47th and Grand Tax Increment Financing District (the "District ") therein and adopt a Tax Increment Financing Plan (the "TIF Plan ") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan "); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1081 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act ") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The EDA and City have investigated the facts relating to the Program and Plan and have caused the Program and Plan 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 Program and Plan, 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 Program and Plan by the City Planning Commission, approval of the Program and Plan by the EDA on July 10, 2017, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports ") relating to the Program and Plan 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 Program and Plan. 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 Project, but is modifying the Development Program therefor. Section 2. Findings for the Adoption and Approval of the Development Program Modification. 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project would not be available for redevelopment without the financial aid to be sought under this Development Program Modification; (b) the Development Program Modification 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 Development Program Modification conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of the 47th and Grand Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is a "housing district" under 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 Program and Plan conform to the general plan for the development or redevelopment of the City as a whole, and that the Program and Plan 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 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. Public Puroose. 4A 1. The adoption of the Program and Plan 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 will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Program and Plan. 5.01. The Program and Plan, 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 Columbia Heights Community Development Director. 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 Program and 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. 5.03 The Auditor of Anoka County (the "County Auditor ") is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the EDA is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the County 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 Columbia Heights Community Development Director is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Section 469.175, Subd. 4a of the TIF Act. The motion for the adoption of the foregoing resolution was duly seconded by Mayor Schmitt, and upon a vote being taken thereon, the following voted in favor thereof: Buesgens, Schmitt, Williams and Murzyn, Jr. and the following voted against the same: Novitsky Dated: July 10, 2017 Mayor (Seal) ATTEST: City Clerk EXHIBIT A RESOLUTION NO. 2017 -PZ05 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (the "TIF Plan ") for the 47th and Grand Tax Increment Financing District (the TIF District "), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: Finding that the TIF District is a housing district as defined in M.S., Section 469.174, Subd. 11. The TIF District consists of three parcels. The development will consist of 173 units of affordable rental housing, all or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S., Section 469.1761. 100 percent of the units /homes 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. 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 development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment, but that due to the high cost of building new affordable housing in the City, the cost of financing the proposed public improvements, and the insufficiency of rents in an affordable housing development to provide a sufficient financial return, the project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. 3. Finding that the TIF Plan for the TIF 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 TIF District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Downtown Central Business Redevelopment Project by private enterprise. Through the implementation of the TIF Plan, the EDA or City will provide an impetus for affordable residential development, which is desirable or necessary for increased population and an increased need for life -cycle rental housing within the City.