HomeMy WebLinkAboutResolution No. 204-21 -D01 - EDA Resolution - Decertifying TIF District No. 52-1 Valleyhigh Villas
RESOLUTION
EDA RESOLUTION NO. ______
COUNCIL RESOLUTION NO. ______
Authorizing the Termination of a Development Assistance Agreement and
Decertifying Tax Increment Financing District No. 52-1.
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Rochester
Economic Development Authority (the “EDA”) and the Common Council (the “Council”)
of the City of Rochester, Minnesota (the “City”), as follows:
Section 1. Recitals.
1.01. The EDA has previously established Economic Development District No. 52
(the “Development District”), adopted the Economic Development Plan for the
Development District (the “Development Plan”), established Housing Tax Increment
Financing District No. 52-1 (Valleyhigh Villas Project) within the Development District (the
“TIF District”) and adopted 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 469.090 through 469.1082, and
Sections 469.174 through 469.1794 (the “TIF Act”), all as amended (collectively, the
“Act”); all as reflected in that certain document entitled in part “Economic Development
Plan for Economic Development District No. 52 of the Rochester Economic Development
Authority and Tax Increment Financing Plan for Housing Tax Increment Financing District
No. 52-1 (Valleyhigh Villas Project),” dated March 21, 2016.
1.02. The EDA entered into a Development Assistance Agreement dated as of
March 21, 2016 (the “Agreement”) with Valleyhigh Villas, Limited Partnership (the
“Owner”) and VV Roch, LLC (the “Developer”), pursuant to which the EDA offered certain
assistance in the form of a taxable tax increment revenue note (the “Note”) to reimburse
the Developer for certain costs associated with the construction of an approximately 139-
unit, four story senior housing apartment building with elevator access, an underground
parking garage, surface parking, multiple community rooms, an exercise room and unit
laundry with all related improvements to be completed, owned and operated by the
Developer (the “Project”) on certain property within the TIF District.
1.03. The Agreement provides that the Owner and the Developer must
commence construction of the Project on or before April 30, 2016, and complete
construction of the Project by June 1, 2017, and that failure to do so constitutes an event
of default which may result in termination of the Agreement.
1.04. The Owner and the Developer never commenced or completed
construction of the Project.
RC110-65-747427.v1
1.05. The EDA, the Owner and the Developer propose to (i) terminate the
Agreement, as well as all related documents, including without limitation the Note all as
set forth in that certain Termination of Development Assistance Agreement to be
executed by the EDA and the Developer (the “Termination Agreement”) and (ii) terminate
the TIF District.
Section 2. Agreement and Note Terminated; TIF District Decertified; Filing.
2.01. The City and the EDA hereby approves the Termination Agreement
substantially in accordance with the terms set forth in the form presented to the Board
and the Council together with any related documents necessary in connection therewith,
including without limitation the Note (collectively, the “Termination Documents”) and
hereby authorizes the President and Secretary of the EDA to negotiate the final terms
thereof and, in their discretion and at such time as they may deem appropriate, to execute
the Termination Documents on behalf of the EDA, and to carry out, on behalf of the EDA,
the EDA’s obligations thereunder when all conditions precedent thereto have been
satisfied.
2.02. The approval hereby given to the Termination Documents 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 authorized officers, any of the documents authorized
by this Resolution to be executed may be executed without further act or authorization of
the Council or the Board by any duly designated acting official, or by such other officer or
officers of the EDA as, in the opinion of counsel to the EDA, may act in their behalf
2.03. The TIF District is hereby deemed decertified as of the date hereof.
2.04. Staff is authorized and directed to transmit a copy of this resolution to
Olmsted County with a request to de-certify the TIF District, it being the intent of the EDA
that no further collection of tax increment from the TIF District will be distributed to the
EDA.
2.05. Staff is authorized and directed to transmit to Olmsted County for
redistribution to the appropriate taxing jurisdictions any tax increments from the TIF
District received by the EDA which remain after paying all remaining obligations and
expenditures authorized under the TIF Act.
2
RC110-65-747427.v1
PASSED AND ADOPTED BY THE BOARD OF COMMISSIONERS OF THE
ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY, THIS 20TH DAY OF
SEPTEMBER, 2021.
PRESIDENT OF SAID AUTHORITY
SECRETARY OF SAID AUTHORITY
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2021.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2021.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
3
RC110-65-747427.v1