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HomeMy WebLinkAbout09-06-23 RESOLUTION 09 -06 -23 • EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, MINNESOTA HELD: June 9, 2009 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Oak Park Heights, Washington County, Minnesota, was duly called and held on the 9th day of June, 2009, at 7:00 p.m. The following members of the Council were present: Councilmembers Abrahamson, McComber, Swenson, Runk, Mayor Beaudet and the following were absent: None MemberMcComber introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING (RENEWAL AND RENOVATION) DISTRICT NO. 1 -1 (OAKGREEN PROJECT) WITHIN DEVELOPMENT DISTRICT NO. 1 AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS: • A. It has been proposed that the City of Oak Park Heights, Minnesota the "City") p p Y g ( Y ) establish Municipal Development District No. 1 (the "Development District ") and adopt the proposed development program therefor and establish Tax Increment Financing (Renewal and Renovation) District No. 1 -1 (Oakgreen Project) ( "TIF District No. 1 -1 ") therein and approve and adopt the proposed tax increment financing plan therefor under the provisions of Minnesota Statutes, Sections 469.174 to 469.1799 (the "Act "); and B. The City Council has investigated the facts and has caused to be prepared a proposed development program for Municipal Development District No. 1 (the "Development Program "), and has caused to be prepared a proposed tax increment financing plan for TIF District No. 1 -1 therein (the "TIF Plan"); and C. The City has performed all actions required by law to be performed prior to the establishment of Municipal Development District No. 1 and TIF District No. 1 -1 therein, and the adoption of a proposed Development Program and TIF Plan therefore, including, but not limited to, notification of Washington County and Independent School District No. 834 having taxing jurisdiction over the property to be included in TIF District No. 1 -1 and the holding of a public hearing upon published and mailed notice as required by law; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Oak Park Heights as follows: • 23275150 1. Development District No. 1. There is hereby established in the City Municipal Development District No. 1, the initial boundaries of which are fixed and determined as described in the Development Program. 2. Development Program. The Development Program for the Development District, a copy of which is on file in the office of the City Administrator, is adopted as the development program for the Development District. 3. Tax Increment Financing Plan. The TIF Plan is adopted as the tax increment financing plan for TIF District No. 1 -1, and the City Council makes the following findings: (a) TIF District No. 1 -1 is a renewal and renovation district as defined in Minnesota Statutes, Section 469.174, Subd. 10a, the specific basis for such determination being, as set forth in the inspection and coverage reports of LHB, Inc. (the "Inspection Reports "), that (i) 70% of the area of the proposed district is occupied by improvements (meaning at least 15% of the area of a parcel is occupied by "buildings, streets, utilities, paved or gravel parking lots, or other similar structures "); (ii) 20% of the buildings, not including outbuildings, are structurally substandard, as defined in the statute, to a degree requiring substantial renovation or clearance and (iii) 30% of the other buildings have other conditions that would require substantial renovation or clearance to eliminate. The proposed development involves the acquisition of six single family homes for demolition to allow construction of (i) an approximately one 48 unit residential building approximately 80,000 square feet and (ii) an approximately 120 unit assisted living facility approximately 107,000 square feet which will provide for the health, safety and • general well being of the residents of the City and in addition will provide affordable, safe, decent, sanitary living for senior residents of the City and will help prevent the emergence of blight and result in the preservation and enhancement of the tax base of the State. (b) The proposed development in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future. The reasons supporting this finding are that: (i) Anchobaypro, Inc. (the "Developer ") has represented to the City that private investment will not finance these development activities because of prohibitive costs. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within Development District No. 1. (ii) A comparative analysis of estimated market values both with and without establishment of TIF District No. 1 -1 and the use of tax increments has been performed as described above. Such analysis is found in Section 4.09 and Exhibit V of the TIF Plan, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of TIF District No. 1 -1 and the use of tax increments. (c) In the opinion of the City Council, the increased market value of the site • that could reasonably be expected to occur without the use of tax increment financing would be 23275150 2 less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of TIF District No. 1 -1 permitted by the TIF Plan. The reasons supporting this finding are that: (i) The estimated amount by which the market value of the site will increase without the use of tax increment financing is $0 and a small amount attributable to appreciation in land value; (ii) The estimated increase in the market value that will result from the development to be assisted with tax increment financing is $18,300,700 (from $1,299,300 to $19,600,000); and (iii) The present value of the projected tax increments for the maximum duration of the district permitted by the tax increment financing plan is $1,675,401. The projected gross tax increments for the maximum duration of the district permitted by the tax increment financing plan is $2,897,237. (d) The TIF Plan for TIF District No. 1 -1 conforms to the general plan for renewal and renovation of the City of Oak Park Heights as a whole. The reasons for supporting this finding are that: (i) TIF District No. 1 -1 is properly zoned with the issuance of a Conditional Use Permit; and • (ii) The TIF Plan will generally compliment and serve to implement policies adopted by the City. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City of Oak Park Heights as a whole, for the renewal and renovation of Development District No. 1 by private enterprise. The reasons supporting this finding are that: The development activities are necessary so that renewal and renovation by private enterprise can occur within Development District No. 1. 4. Public Purpose. The adoption of the Development Program for Development District No. 1, and the adoption of the TIF Plan for TIF District No. 1 -1 therein conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up to provide employment opportunities and provide for the health, safety and general well being of the residents of the City and in addition provide safe, decent, sanitary housing for the senior residents of the City, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. 5. Certification. The Auditor of Washington County is requested to certify the original net tax capacity of TIF District No. 1 -1 as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Administrator is authorized and directed to forthwith • transmit this request to the County Auditor in such form and content as the Auditor may specify, 23275150 3 together with a list of all properties within TIF District No. 1 -1 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. 6. Filing. The City Administrator is further authorized and directed to file a copy of the Development Program and TIF Plan for TIF District No. 1 -1 with the Commissioner of Revenue. 7. Administration. The administration of Development District No. 1 is assigned to the City Administrator who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate. 8. TIF Development Agreement. The City Administrator and the City Attorney e further authorized and directed to negotiate a final Development Agreement with the are p g Developer of the Oakgreen Project. Unless and until a Development Agreement is completed, the TIF Plan and District shall not be Certified to the State of Minnesota, Washington County or other final authority. The TIF Development Agreement shall contain, at a minimum, the following general provisions: (a) No TIF funds shall be paid to the Developer until all public and common area improvements, including all trails, infrastructure is installed for all aspects of the Oakgreen Project (Carriage Homes and the Assisted Living Facility) are completed. (b) No TIF funds shall be paid to the Developer until all required lands along • Oakgreen Ave are transferred to City ownership consistent with the City's General Development Agreement. (c) The City may first retain up to 20 percent of all TIF proceeds generated in each year for administrative costs or other permissible expenses. (d) The Developer shall not receive more than 80 percent of available TIF proceeds generated in each year of the District; actual final percentages of TIF proceeds paid to the Developer shall be subject to final negotiation between the City and the Developer (e) The Developer shall provide documentation demonstrating financial capability for completing all elements of Oakgreen Project. The motion for the adoption of the foregoing resolution was duly seconded by member Swenson and upon vote being taken thereon, the following voted in favor thereof: Abrahamson, McComber, Runk, Swenson and the following voted against the same: Mayor Beaudet 23275150 4 I Adopted by the City council of the City of O k Heights, Minnesota, this 9th day of June, 2009. a or j T y' dministrator • 0 2327515v3 5 STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF OAK PARK HEIGHTS I, the undersigned, being the duly qualified and acting Administrator of the City of Oak Park Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the establishment of Development District No. 1 and TIF District No. 1 -1 therein in the City. WITNESS my hand this d y f une, 2009. it dmi or i 23275150 6