HomeMy WebLinkAboutEDA Resolution No. 2021-08COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2021-08
RESOLUTION APPROVING TERMINATION OF CONTRACT FOR PRIVATE
REDEVELOPMENT AND DECERTIFICATION OF CENTRAL VALU CENTER TAX
INCREMENT FINANCING DISTRICT
BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights
Economic Development Authority (the "Authority") as follows:
Section 1. Recitals.
1.01. The City of Columbia Heights (the "City") previously established the Central
Valu Center Tax Incrernent Financing District (the "TIF District"), a redevelopment TIF District,
within Downtown Central Business Redevelopment Project in the City and approved a Tax
Increment Financing Plan ("TIF Plan") for the TIF District. The TIF District is administered by
the Authority.
1.02. Pursuant to the terms of the Contract for Private Redevelopment between the
Authority and Hy-Vee, Inc. (the "Redeveloper"), dated October 24,2016, as amended by a First
Amendment thereto dated as of June 4, 2018 (as so amended, the "Agreement"), the Authority
agreed to grant tax increment financing assistance to the Redeveloper in the form of a tax
increment revenue note (the "TIF Note") to reimburse the Redeveloper for certain Public
Redevelopment Costs in connection with the construction of certain restaurant, retail, and office
improvernents (the "Minimum Improvements") on certain property (the "Redevelopment
Property") within the TIF District. The Agreanent provided that payments of principal and
interest on the TIF Note would commence upon receipt by the Authority of tax incrernent {iom
the Minimum Improvements to be constructed on the Redevelopment Property.
1.03. Despite an extension of the required dates of commencement and completion of
construction of the Minimum Improvonents, the Redeveloper has not commenced construction
of the Minimum knprovements as of the date hereof, and has notified the Authority that
Redeveloper will not construct the Minimum Improvernents and has requested that the parties
terminate the Agreement and decertifu the TIF District.
1.04. The Authority agrees that decertification of the TIF District and termination of the
Agreement are in the best interest of the Authority and City, because such actions will allow the
creation of a new redevelopment tax increment financing district encompassing the Property in
which a mixed-use housing and retail development is contemplated, thereby increasing housing
options for City residents.
Section 2. TIF District ed: Apreem ent Terminatedl Filins.
2.01. The Authority hereby approves decertification of the TIF District and termination
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ATTEST:
of the Agreement.
2.02. Authority staff is authorized and directed to transmit a copy of this Resolution to
the Manager of Property Records and Taxation, as County Auditor, of Anoka County (the
"County Auditor") with instructions to decertift the TIF District as of the date hereof, it being
the intent of the City and Authority that any tax increment derived from the TIF District and
collected after the date hereof should be redistributed by the County Auditor to the taxing
jurisdictions within the TIF District as described below.
2.03. The TIF District has not generated any tax increment as of the date hereof, but if
any tax increment derived fiom the TIF District is generated and received by the Authority after
the date hereof, Authority staffis directed to retum such tax increment to the County Auditor for
distribution to the taxing j urisdictions within the TIF District.
Adopted by the Board of Commissioners of the Columbia Heights Economic Developmort
Authority this 7th day ofJune, 2021 .
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