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HomeMy WebLinkAboutResolution No. 224-18 - DaysInn.SubstandardDetermination RESOLUTION FINDING A PARCEL TO BE OCCUPIED BY A STRUCTURALLY SUBSTANDARD BUILDING BE IT RESOLVED by the Common Council (the “Council”) of the City of Rochester, Minnesota (the “City”), as follows: 1. Recitals. a. It has been proposed that the City create a tax increment financing district in an area within the City’s area of operation to be designated a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subd. 10. b. In order to create this type of tax increment financing district, the City must make a determination that before the demolition or removal of substandard buildings, certain conditions existed. c. The conditions found by the City to exist throughout the proposed tax increment financing district (legally described as Lots 7-12, Block 37, Original Plat of the City of Rochester, Olmsted County, Minnesota (the “Property”)) are that parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. d. In order to deem a parcel as being occupied by a structurally substandard building, the City must first pass a resolution before the demolition or removal that the parcel was occupied by one or more structurally substandard buildings and that after demolition and clearance, the City intended to include the parcel within the proposed tax increment financing district. e. There exists in the City’s area of operation on each parcel or parcels in the Property one or more structurally substandard buildings to be demolished or removed (the “Substandard Building Condition”). f. A parcel is deemed to be occupied by a structurally substandard building if the Substandard Building Condition is met within three years of the filing of the request for certification of the parcel as part of the tax increment financing district with the county auditor; and if certain other conditions are met. 1 302030412v2 0947736 2. Findings. In satisfaction of Minnesota Statutes Section 469.174, Subdivisions 10(a)(1) and (d)(3), the City hereby finds: (a) the foregoing Recitals which by this reference are hereby incorporated into the Findings; and (b) that over 70% of the area of the Property contains improvements and is occupied by one or more structurally substandard buildings and that after demolition and clearance the City intends to include the Property within the proposed tax increment financing district. The substandard building on the Property is identified in a Redevelopment TIF District Assessment prepared by TSP Inc. and dated May 10, 2018. 3. Demolition Agreement. A Demolition Agreement between the City and MKDI, LLC, the owner of the Property, pursuant to which MKDI, LLC will demolish the substandard buildings located on the Property, at its sole expense, has been prepared and is on file with the City Clerk. The Demolition Agreement is hereby approved in substantially the form on file, and the Mayor and Clerk are authorized to sign the Demolition Agreement on behalf of the City. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS DAY OF , 2018. PRESIDENT OF SAID COMMON COUNCIL ATTEST: CITY CLERK APPROVED THIS DAY OF , 2018. MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Res15/DaysInn 2 302030412v2 0947736 EXHIBIT A LOCATION MAP 4 302030412v2 0947736