HomeMy WebLinkAbout2021-52crTY oF CoLIIMBIA IIEIGHTS, MII\IIESOTA
RESOLUTION NO. 2O2I-52
RESOLUTION ADOPTING A MODIFICATION TO THE
DOWNTOWN CBD REVITALIZATION PLAII FOR THE
DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT
PROJECT, ESTABLISIIING THE ALATUS TIF DISTRICT
THEREIN, AND ADOPTING A TAX INCREMENT FINAIICING
PLANI THEREFOR
BE IT RESOLVED by the City Council (the "City Council") of the City of Columbia Heights, Minnesota
(the "City") as follows:
Section 1. Recitals.
1.01. The City and the Columbia Heights Economic Development Authority (the "Authority")
have previously approved a Downtown CBD Revitalization Plan (the "Revitalization Plan") for the
Downtown Central Business Redevelopment Project (the "Redevelopment Project") within the City,
pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes,
Sections 469.090 through 469.1081, as amended (together, the "Act").
1.02. The City and the Authority have determined to modiff the Revitalization Plan for the
Redevelopment Project and approve a tax increment financing plan (the "TIF Plan") for the Alatus TIF
District (the "TIF District"), a redevelopment district, pursuant to Minnesota Statutes, Sections 469.174
through 469.1794, as amended (the "TIF Act"), all as described in a plan document presented to the City
Council on the date hereof.
1.03. Pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF
District was presented to the commissioner of Anoka County, Minnesota (the "County") representing the
area to be included in the TIF District at least thirty (30) days before the publication of the notice of
public hearing.
1.04. Pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed TIF Plan and the
estimates of the fiscal and economic implications of the TIF Plan were presented to the Board of
Education of the Columbia Heights Public Schools and to the Board of Commissioners of the County at
least thirty (30) days before the date of the public hearing.
1.05. On June 7,2021, the Board of Commissioners of the Authority adopted a resolution
approving the modified Revitalization Plan and the TIF Plan and transmitted the modified Revitalization
Plan and the TIF Plan to the City Council for consideration.
1.06. The City Council has reviewed the contents of the modified Revitalization Plan and the TIF
Plan and on this date conducted a duly noticed public hearing thereon, at which the views of all interested
parties were heard.
Section 2. Findings for the Adoption and Approval of the Modified Revitalization Plan.
2.01. It is hereby found and determined that within the Redevelopment Project there exist
conditions of economic obsolescence, underutilization, and inappropriate uses of land constituting blight
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within the meaning of the Act. The findings stated in the modified Revitalization Plan are incorporated
herein by reference.
2.02. lt is further specifically found and determined that (D the land within the Redevelopment
Project would not be made available for redevelopment without the public intervention and financial
assistance described in the Revitalization Plan; (ii) the modified Revitalization Plan will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the
Redevelopment Project by private enterprise; and (iii) the modified Revitalization Plan conforms to the
general plan for the development of the City as a whole.
Section 3. Findings for the Establishment of the TIF District.
3.01, It is found and determined that it is necessary and desirable for the sound and orderly
development of the Redevelopment Project, and for the protection and preservation of the public health,
safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial
assistance to the TIF District and the Redevelopment Project.
3.02. It is further found and determined, and it is the reasoned opinion of the City, that the
development proposed in the TIF Plan could not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and 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 expected 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
TIF Plan.
3.03. The proposed public improvements to be financed in part through tax increment financing
are necessary to permit the City to realize the full potential of the TIF District and the Redevelopment
Project in terms of redevelopment of blighted property, development intensity, and tax base.
3.04. The TIF Plan conforms to the general plan for development of the City as a whole.
3.05. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City
as a whole, for the redevelopment of the TIF District and the Redevelopment Project by private
enterprise.
3.06. The TIF District is a redevelopment district under Section469.174, subdivision l0 of the
TIF Act.
3.07. Reasons and facts supporting all the above findings are set forth in the TIF Plan and in
EXHIBIT A attached to this resolution and are incorporated herein by reference. The City Council has
also relied upon reports and recommendations of its staff and consultants, as well as the personal
knowledge of members of the City Council, in reaching its conclusions regarding the TIF Plan.
Section 4. Public Purpose. The adoption of the modified Revitalization Plan and the TIF
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 additional market-rate, senior, and single-family housing
opportunities, to create job 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,
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any private benefits received by a developer are incidental and do not outweigh the primary public
benefits.
Section 5. Approvals: Further Proceedings.
5.01. The modified Revitalization Plan and the TIF Plan are hereby approved and adopted in
substantially the forms on file at City Hall and shall be placed on file in the office of the Director of
Community Development.
5.02. The City Council authorizes and directs the Authority to file a request for certification of the
TIF District with the Manager of Property Records and Taxation, as Coun[r Auditor, of the County (the
"Coungr Auditor") and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue and the
Office of the State Auditor as required by the TIF Act.
5.03. The County Auditor is requested to certifo the original net tax capacity of the TIF District,
as described in the modified Revitalization Plan and the TIF Plan, and to certiff in each year thereafter
the amount by which the original net tax capacity has increased or decreased. The City Council hereby
authorizes and directs the Authority to forthwith transmit this request to the County Auditor in such form
and content as the County Auditor may specifu, together with a list of all properties within the TIF
District for which building permits have been issued during the eighteen (18) months immediately
preceding the adoption of this resolution.
5.04. The City's staff, advisors, and legal counsel are authorized and directed to proceed with the
implementation of the modified Revitalization Plan and the TIF Plan and to negotiate, draft, prepare, and
present to the City Council for its consideration all further plans, resolutions, documents, and contracts
necessary for this purpose.
Approved this 14ft day of June, 2021,by the City Council of the City of Columbia Heights, Minnesota.
Offered by: Jacobs
Seconded by: Murzyn, Jr
RollCall: All Ayes
Simu
ATTEST:
Nicole Tingley, City Secretary
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EXHIBIT A
FINDINGS OF FACT
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (the
"TIF Plan") for the Alatus TIF District (the "TIF District"), as required pursuant to Minnesota Statutes,
Section 469.175, subd. 3 are as follows:
1. Finding that the TIF District is a redevelopment district as defined in Minnesota Statutes,
Section 469.174, subd. l0(a)(1).
The TIF District consists of two parcels and vacant right-of-way with plans to redevelop the area for a
mixed-use development including approximately 300 market-rate apartment units, 120 senior apartment
units, 26 single-family homes, and 80,000 square feet of retail space. At least 70 percent of the area of
the parcels in the TIF District is occupied by buildings, streets, utilities, paved or gravel parking lots or
other similar structures and more than 50 percent of the buildings in the TIF District, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See
Appendix D of the TIF Plan.)
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 and that
the increased market value of the site that could reasonably be expected to occur without the use of tm
increment financing would be less than the increase in the market value estimated to result from the
proposed development afier subtracting the present value of the projected tax increments for the
maximum duration of the TIF District permitted by the TIF 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 proposed redevelopment meets the City's objectives for redevelopment, but due to the high costs
of redevelopment on the parcels currently occupied by a substandard building, including costs associated
with remediation and demolition, replacement costs of a regional storm water pond, and the cost of
financing the improvements, this project is feasible only through assistance, in part, from tax increment
financing. In addition, the City previously approved and established a different tax increment financing
district on the site of the TIF District, but the proposed project was abandoned. The developer was asked
for and provided a letter and a proforrna as justification that the developer would not have gone forward
without tax increment assistance.
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 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 TIF District permitted by the TIF Plon: This finding is justified on the grounds that the costs of
acquisition, demolition, environmental remediation, site and public improvements, and utilities add to the
total redevelopment cost. Historically, these have made redevelopment of any kind on these parcels
infeasible without tax increment assistance. Therefore, the City reasonably determines that no other
redevelopment of similar scope can be anticipated on this site without substantially similar assistance
being provided to the development.
Therefore, the City concludes as follows:
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a. The City's estimate of the amount by which the market value of the entire TIF District will
increase without the use of tax increment financing is $0.
b. If the proposed development occurs, the total increase in market value will be $114,972,660 (see
Appendix B of the TIF Plan). [NOTE: Appendix C says $114,973,6601
c. The present value of tax increments from the TIF District for the maximum duration of the
district permitted by the TIF Plan is estimated to be $56,790,125 (see Appendix B of the TIF Plan).
d. Even if some development other than the proposed development were to occur, the City Council
finds that no alternative would occur that would produce a market value increase greater than
S58,182,535 (the amount in clause b less the amount in clause c) without tax increment assistance.
[NOTE: Appendix C says $58,183,5351
3. Finding that the TIF Plan conforms to the general planfor the development or redevelopment of
the municipality as awhole.
The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general development
plan of the City, including the proposed 2040 Comprehensive Plan.
4. Finding that the TIF Plan will afford maximum opportunity, consistent with the sound needs of
the City as a whole, for the development or redeyelopment of the Downtown Central Business
Redevelopment Project by private enterprise.
The project to be assisted by the TIF District will result in increased availability of safe and decent
life-cycle housing in the City, increased employment in the City and the State of Minnesota (the "State"),
the renovation of substandard properties, additional market-rate housing opportunities, and increased tax
base of the State, and will add a high-quality development to the City.
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