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HomeMy WebLinkAbout2022-034CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO.2022-34 RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT, ESTABLISHING THE 42ND AND JACKSON TAX INCREMENT FINANCING DISTRICT THEREIN, AND ADOPTING A TAX INCREMENT FINANCING PLAN 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 Central Business District Revitalization Plan (the "Revitalization Plan") for the Downtown Central Business District 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 469.1082, as amended (together, the "Act"). 1.02. The City and the Authority have determined to modify the Revitalization Plan for the Redevelopment Project and approve a Tax Increment Financing Plan (the "TIF Plan") for the 42nd and Jackson Tax Increment Financing District (the "TIF District"), a housing district with the Redevelopment Project, 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 Manager of Property Records and Taxation, as County Auditor, of the County (the "County Auditor") at least thirty (30) days before the date of the public hearing. 1.05. On March 7, 2022, 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 CL205-81-781097.vl within the meaning of the Act. The findings stated in the modified Revitalization Plan are incorporated herein by reference. 2.02. It is further specifically found and determined that (i) 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. 3.03. The proposed development to be financed in part through tax increment financing will provide the City with affordable housing. 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 housing district under Section 469.174, subdivision 11 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. 3.08. The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. 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 provide additional affordable housing opportunities in the City 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. 2 CL205-81-781097.v1 Section 5. Approvals; Further Proceeding. 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 Community Development Director. 5.02. The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County 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 certify the original net tax capacity of the TIF District, as described in the modified Revitalization Plan and the TIF Plan, and to certify 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 specify, 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 14' day of March, 2022, by the City Council of the City of Columbia Heights, Minnesota. Offered by: Jacobs Seconded by: Novistky Roll Call: All Ayes 4Myvo4rA"�" ATTEST: City ClerK CL205-81-781097,v1 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 42"d and Jackson Tax Increment Financing District (the "TIF District"), as required pursuant to Minnesota Statutes, Section 469.175, subd. 3 are as follows: 1. Finding that the TIF Plan conforms to the general plan for the development or redevelopment of the municipality as a whole. 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. 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. This proposed TIF District is a housing district, which will provide additional affordable housing in the City and meet the City's objectives for development and redevelopment. However, due to high costs of land acquisition, site and public improvements and utilities, the proposed housing project is feasible only through assistance, in part, from tax increment financing. In addition, decreased rental income from the affordable units will result in a cash flow insufficient to provide a sufficient rate of return, pay operating expenses, and service the debt related to this project. This funding gap will be payable, in part, through tax increment financing. The redeveloper was asked for and provided a letter and a proforma as justification that the redeveloper would not have gone forward without tax increment assistance. 3. Finding that the TIF Plan 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 District Redevelopment Project by private enterprise. The project to be assisted by the TIF District will result in increased availability of decent, safe and sanitary life -cycle affordable housing in the City. A-1 CL205-81-781097.v1