HomeMy WebLinkAboutResolution No. 174-18 1 - HarvestviewPlace.DevelopementAssistanceAgreement
EDARESOLUTION NO.______
COUNCIL RESOLUTION NO. ______
ROCHESTERECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF OLMSTED
STATE OF MINNESOTA
RESOLUTION APPROVING AN ECONOMICDEVELOPMENT DISTRICTAND
ECONOMIC DEVELOPMENT PLANTHEREFORANDAPPROVING A HOUSING TAX
INCREMENT FINANCING DISTRICT AND A TAX INCREMENT FINANCING PLAN
THEREFOR AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT
ASSISTANCE AGREEMENT
BE IT RESOLVED by the Board of Commissioners (the “Board”) of theRochester
Economic Development Authority(the“EDA”), as follows:
Section 1.Recitals.
1.01.It has been proposed that the EDA establish Economic Development DistrictNo.
65(the “Development District”),adopt the Economic Development Planfor the Development
District(the “Development Plan”), establish Housing Tax Increment Financing District No. 65-1
(Harvestview Place Project)within the Development District(the “TIF District”) and adopt a
Tax Increment Financing Plan therefor (the “TIF Plan” and, together with the Development Plan,
the “Plans”), all pursuant to and in conformity with applicable law, including Minnesota Statutes,
Sections 469.001 through 469.047, Sections 469.090 through 469.1082, Sections 469.174
through 469.1794 (the “TIF Act”), as amended (collectively, the “Act”); all as reflected in that
certain document entitled in part “Economic Development Planfor Economic Development
DistrictNo. 65of the Rochester Economic Development Authority and Tax Increment Financing
Plan for Housing Tax Increment Financing District No. 65-1(Harvestview Place Project),” dated
May 7, 2018, and presented for the Board’s consideration.
1.02.The Board has investigated the facts relating to the establishment of the
Development District, the adoption of the Development Plan, the establishment of the TIF
District and the adoption of the TIF Plan.
1.03.The City of Rochester, Minnesota (the “City”)or the EDAhas performed all
actions required by law to be performed prior to the adoption and approval of the TIF Plan,
including but not limited to notice to the County Commissioner representing the area of the
County to be included in the TIFDistrict, delivery of the TIF Plan to the County and School
Board and the holding of a public hearing thereon by the City following notice thereof published
in the City’s official newspaper at least 10 but not more than 30 days prior to the public hearing.
1.04.Certain written reports and other documentation (collectively, the “Reports”)
relating to the Plans, including the tax increment application made andother information
supplied by Harvestview Place, Limited Partnership, a Minnesota limited partnership(the
522148v3 RC110-75
“Developer”)as to the activities contemplated,therein have heretofore been assembled or
prepared by staff or others and submitted to the Boardand/or made a part of the City and EDA
files and proceedings on the Plans. The Reports include information constituting or relating to
(1) why the assistance satisfies the so-called “but for” test and (2)the bases for the other findings
and determinations made in this resolution. The Boardhereby confirms, ratifies and adopts the
Reports, which are hereby incorporated into and made as fully a part of this resolution to the
same extent as if set forth in full herein.
1.05.The TIF District is being established to facilitate the construction of an
approximately 60unit, four-story apartment building with elevator access, a community room,
an exercise room, underground and surface parking and an outdoor play area, with all related
improvements to be completed, owned and operated by the Developer(the “Development”).
Section 2.Findings for the Adoption and Approval of the Plans.
2.01.The Board hereby finds that the Development District is proper and desirable to
establish and develop within the City,its effect will be to carry out the objectives of the
Development Plan by creating an impetus for the development of low and moderate income
housing facilities and related structures in the City, and otherwise promote certain public
purposes and accomplish certain objectives as specified in the Plans.
2.02.The Board hereby finds that the TIF District is in the public interest and is a
“housingdistrict” within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11,
because:
The TIF District consists of a project or portions of a project intended for
occupancy, in part, by persons or families of low and moderate income as defined
in Chapter 462A, Title II of the National Housing Act of 1934, the National
Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V
of the Housing Act of 1949, as amended, and any other similar present or future
federal, state or municipal legislation, or the regulations promulgated under any of
those acts.The Developerhas represented that at least 40% of the units in the
Developmentwill be reserved for rental to persons whose annual income does not
exceed 60% of applicable area median income.No more than 20% of the square
footage of buildings that receive assistance from tax increments will consist of
commercial, retail or other nonresidential uses.
2.03.The Board hereby makes the following additional findings in connection with the
TIF District:
(a)The Board further finds that the proposed development, in the opinion of
theBoard, would not occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment financing is deemed necessary.
(b)The Board further finds that the TIFPlan conforms to the general plan for
the development or redevelopment of the City as a whole.
2
522148v3 RC110-75
(c)The Board further finds that the TIF Plan will afford maximum
opportunity consistent with the sound needs of the City as a whole for the development of
the TIFDistrict by private enterprise.
2.04.The EDAelects to retain all of the captured tax capacity to finance the costs of the
TIF District.
2.05.The provisions of this Section 2are hereby incorporated by reference into and
made a part of the TIFPlan.
2.06.TheBoardfurther finds that the Plans are intended and in the judgment of the
Boardits effect will be to promote the public purposes and accomplish the objectives specified
therein.
2.07.The Plans, as presented to the Board on this date, including without limitation the
findings and statements of objectives contained therein, are hereby approved, ratified,
established, and adopted and shall be placed on file in the office of the Executive Director of the
EDA. EDA staff shall, in writing, request the Olmsted County Auditor to certify the new TIF
Districtand file the Plans with the Commissioner of Revenue and the Office of the State Auditor.
Section 3.Approval of Development Assistance Agreement.
3.01.The Developerhas presented the EDA with a proposal for the construction of the
Development by Developer,and there has been prepared and presented to the Board for its
consideration a certain Development Assistance Agreement (the “Agreement”) between the EDA
andthe Developer, stating the Developer’s responsibilities and the terms and conditions the
EDA’s assistance with the financing of certain costs of the Development.
3.02.The Board hereby approves the Agreementin substantially the form presented to
the Board, together with any related documents necessary in connection therewith (collectively,
the “DevelopmentDocuments”)and hereby authorizes the President and Secretary, in their
discretion and at such time, if any, as they may deem appropriate, to execute the same on behalf
of the EDA, and to carry out, on behalf of the EDA, the EDA’s obligations thereunder; provided
however that thisauthorization by the EDA shall expire if the Developer hasnot (i) executed the
Agreement, (ii) obtained a footing and foundation permit and commenced construction of the
foundation of the Improvements, and (iii) delivered to the EDA evidence satisfactory to the EDA
that the Developer has sufficient financing to complete the Improvementswithin 180 days of the
date hereof. Priorto the expiration of such 180 period, the Developer may request an extension
from the Board of Commissioners of the EDA.
3.03.The approval hereby given to the DevelopmentDocuments includes approval of
such additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate and
approved by legal counsel to the EDA and by the officers authorized herein to execute said
documents prior to their execution; and said officers are hereby authorized to approve said
changes on behalf of the EDA. The execution of any instrument by the appropriate officers of
the EDA herein authorized shall be conclusive evidence of the approval of such document in
accordance with the terms hereof. In the event of absence or disability of the officers, any of the
3
522148v3 RC110-75
documents authorized by this Resolution to be executed may be executed without further act or
authorization of the Board by any duly designated acting official, or by such other officer or
officers of the Board as, in the opinion of the City Attorney, may act in their behalf
3.04.Upon execution and delivery of the Development Documents, the officers and
employees of the EDA are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the EDA to implement the Development Documents,
including without limitation the issuance of the Tax IncrementRevenue Notethereunder.
3.05.The Board hereby determines that the execution and performance of the
Development Documents will help realize the public purposes of the Act.
Section 4.Interfund Loans.
4.01.The Board hereby approves a policy on interfund loans or advances (“Loans”) for
theTIFDistrict, as follows:
(a)The authorized tax increment eligible costs (including without limitation
out-of-pocket administrative expensesin an amount up to $69,242, interest in an amount
up to $615,597and other project costs in an amount up to $700,000) payable from the
TIF District, as its TIFPlan is originally adopted or may be amended, may need to be
financed on a short-term and/or long-term basis via one or more Loans, as may be
determined by the City Finance Director from time to time.
(b)The Loans may be advanced if and as needed from available monies in the
City’sor EDA’s generalfund or other Cityor EDAfund designated by the City Finance
Director. Loans may be structured as draw-down or “line of credit”obligations of the
lending fund(s).
(c)Neither the maximum principal amount of any one Loan nor the aggregate
principal amount of all Loans may exceed $1,384,839outstanding at any time.
(d)All Loansshall mature not later than February 1, 2046or such earlier date
as the City Finance Director may specify in writing. All Loans may be pre-paid, in whole
or in part, whether from tax increment revenue, tax increment revenue bond proceeds or
other eligible sources.
(e)The outstanding and unpaid principal amount of each Loan shall bear
interest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178,
Subdivision 7), which is the greater of the rates specified under Sections 270C.40or
549.09 at the time a Loan, or any part of it, is first made, subject to the right of the City
Finance Director to specify a lower rate (but not less than the City’s then-current average
investment return for similar amount and term).
(f)Such Loans within the above guidelines are pre-approved. The Loans
need not take any particular form and may be undocumented, except that the City
Finance Director shall specify the principal amount and interest rate and maintain all
necessary or applicable data on the Loans.
4
522148v3 RC110-75
PASSED AND ADOPTED BY THE BOARD OF COMMISSIONERS OF THE
TH
ROCHESTERECONOMIC DEVELOPMENT AUTHORITY, THIS 7DAY OFMAY,2018.
PRESIDENT OF SAID AUTHORITY
SECRETARY OF SAID AUTHORITY
APPROVED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER,
TH
MINNESOTA, THIS THIS 7DAY OF MAY, 2018.
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: _________________
CITY CLERK
APPROVED THIS ______ DAY OF MAY, 2018.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
5
522148v3 RC110-75