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HomeMy WebLinkAboutResolution No. 097-22 EDA22-006 Structurally Substandard Determination on the former Michael's Restaurant at 15 S Broadway Ave and Demolition and Development Agreement with BGD5 Development, LLC EDA RESOLUTION NO. EDA22-006 EDA D1 (L01) CITY COUNCIL RESOLUTION NO. 097-22 Rochester Economic Development Authority County of Olmsted, State of Minnesota Finding a Parcel to be Occupied by a Structurally Substandard Building. 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: 1. Recitals. a. It has been proposed that the EDA create a tax increment financing district in an area within the EDA’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 EDA must make a determination that before the demolition or removal of substandard buildings, certain conditions existed. c. The conditions found by the EDA to exist throughout the proposed tax increment financing district (legally described as Lots 2,3 and S ½, Lot 4, Block 32, 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 EDA 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 EDA intend to include the parcel within the proposed tax increment financing district. e. There exists on each parcel or parcels in the Property one or more structurally substandard buildings to be demolished or removed (the “Building”). f. A parcel is deemed to be occupied by a structurally substandard building if it is occupied by a substandard building 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. 2. Findings. a. In satisfaction of Minnesota Statutes Section 469.174, Subdivisions 10(a)(1) and (d)(3), the Council and the Board hereby find: (a) the foregoing Recitals which by this reference are hereby incorporated into EDA RESOLUTION NO. CITY COUNCIL RESOLUTION NO. the Findings; and (b) that over 70% of the area of the Property contains improvements and is occupied by one or more structurally substandard building and that after demolition and clearance the EDA and the Council intend to include the Property within a proposed tax increment financing district. b. The Building is identified in a Redevelopment TIF District Assessment prepared by CRW Architects and dated August 8, 2018 (the “CRW Report”). c. Based on representations of the owner of the property, BGD5 Development LLC, a Minnesota limited liability corporation (the “Owner”), there have been no improvements made to the Building since the completion of the CRW Report and the condition of the Building has continued to deteriorate. 3. Development and Demolition Agreement. A Development and Demolition Agreement between the EDA and the Owner (the “Agreement”), pursuant to which the Owner will demolish the Building, at its sole expense, has been prepared and is on file with the EDA Secretary. The Agreement is hereby approved in substantially the form on file, and the President and Secretary are authorized to sign the Agreement on behalf of the EDA. PASSED AND ADOPTED BY the Board of Commissioners of the Rochester Economic th Development Authority of Rochester, Minnesota, this 18Day of April, 2022. EDA RESOLUTION NO. CITY COUNCIL RESOLUTION NO. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS___4th_______DAY OF___April____, 2022. ATTEST: CITY CLERK APPROVED THIS__6th___DAY OF_______ April______, 2022. _____________ MAYOR OF SAID CITY