HomeMy WebLinkAboutResolution No. EDA22-003 040-22 D04 - EDA Resolution - Rescinding Approval of Tax Increment Financing District No. 66-1 and Development Agreement
EDA RESOLUTION NO. ____
CITY COUNCIL RESOLUTION NO. ____
Rochester Economic Development Authority
County of Olmsted, State of Minnesota
Rescinding Approval of the Development Assistance Agreement and Rescinding
Approval of Tas Increment Financing Distirct No. 66-1.
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. Pursuant to Resolution No. 241-18 (the “First City Resolution”) and
Resolution No. EDA18-004 (the “First EDA Resolution”), both dated July 2, 2018, the City
and the EDA, respectively, have previously established Economic Development District
No. 66 (the “Development District”), adopted the Economic Development Plan for the
Development District (the “Development Plan”), established DMC Redevelopment Tax
Increment Financing District No. 66-1 (Bloom Riverfront) 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 469.001 through 469.047,
Sections 469.090 through 469.1082, Sections 469.174 through 469.1794 (the “TIF Act”),
and Minnesota Statutes, Sections 469.40 to 469.47 (the “DMC 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. 66 of the Rochester Economic
Development Authority and Tax Increment Financing Plan for DMC Redevelopment Tax
Increment Financing District No. 66-1 (Bloom Riverfront),” dated July 2, 2018.
1.02. Pursuant to Resolution No. 358-18 (the “Second City Resolution”) and
Resolution No. EDA18-010 (the “Second EDA Resolution”), dated October 15, 2018, the
City and the EDA, respectively, approved the execution of a Development Assistance
Agreement (the “Development Agreement”) with Bloom International Realty LLC, a
Delaware limited liability company (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 925,673 square foot, two-tower, skyway connected structure with
structured parking, approximately 181 hotel rooms, approximately 215 independent,
assisted living and memory care apartment units and approximately 132 owner occupied
condominium housing units with retail on the street and skyway levels (the “Project”) to
be located 14 2nd Street SE, 50 3rd Street SE, and 11 4th Street SE within the
Development District.
1.03. The Second City Resolution and the Second EDA Resolution provided that
the authorization given under such resolutions would expire if the Developer had not, by
July 31, 2019, (i) executed the Development Agreement, (ii) obtained a footing and
foundation permit and commenced construction of the foundation of the Project, and (iii)
EDA RESOLUTION NO. ____
CITY COUNCIL RESOLUTION NO. ____
delivered to the City and EDA evidence satisfactory to the City and EDA that the
Developer had sufficient financing to complete the Project.
1.04. The Development Agreement was never executed by the City or the EDA.
The Developer never commenced or completed construction of the Project.
1.05. The Developer executed a Purchase Agreement with the City (the
“Purchase Agreement”) dated August 6, 2018, whereby the Developer agreed to buy
certain real property from the City located in the Development District. The Purchase
Agreement expired on December 31, 2018.
1.06. The EDA never certified the TIF District.
1.07. The EDA and the City propose to (i) rescind the First EDA Resolution and
the First City Resolution approving the Development District, the TIF District and the
Plans, and (ii) rescind the Second EDA Resolution and the Second City Resolution
approving the Development Agreement and all related documents.
Section 2. Approval of Development Agreement Rescinded; Approval of TIF
District Rescinded; Filing.
2.01. The First City Resolution and the First EDA Resolution approving the
Development District, TIF District and the Plans are hereby rescinded as of the date
hereof.
2.02. The Second City Resolution and the Second EDA Resolution approving the
Development Agreement, and all related documents, are hereby rescinded as of the date
hereof.
PASSED AND ADOPTED BY the Board of Commissioners of the Rochester Economic
Development Authority of Rochester, Minnesota,
this ______Day of Feburary, 2022.
PRESIDENT OF SAID AUTHORITY
SECRETARY OF SAID AUTHORITY
EDA RESOLUTION NO. ____
CITY COUNCIL RESOLUTION NO. ____
BE IT RESOLVED by the Common Council of the City of Rochester, MN that the
Council does concur with and authorize this designation.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2022.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2022.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)