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
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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. 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.
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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
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ATTEST:
City ClerK
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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 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.
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