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HomeMy WebLinkAboutResolution No. 104-15104-15 EDA D2 • ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF OLMSTED f.�9*6125IQQ1-91061Y.1 RESOLUTION NO. 104-15 RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT DISTRICT AND ECONOMIC DEVELOPMENT PLAN THEREFOR, APPROVING A TAX INCREMENT FINANCING DISTRICT AND A TAX INCREMENT FINANCING PLAN THEREFOR AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT BE IT RESOLVED by the Board of Commissioners (the "Board") of the Rochester Economic Development Authority (the `EDA"), as follows: Section 1. Recitals. 1.01. It has been proposed that the EDA establish Economic Development District No. 45 (the "Development District"), adopt the Economic Development Plan for the Economic Development District (the "Economic Development Plan"), establish Tax Increment Financing District No. 45-1 within the Development District (the "TIF District") and adopt a Tax Increment Financing Plan therefor (the "TIF Plan" and, together with the Economic Development Plan, the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, 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 Plan for Economic Development District No. 45 of the Rochester Economic Development Authority and Tax Increment Financing Plan for Tax Increment Financing District No. 45-1," dated March 2, 2015, 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 Economic 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 EDA has 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 TIF District, delivery of the TIF Plan to the County and School Board and the holding of a public hearing by the City thereon 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 Plan, including the tax increment application made and other information supplied by Ashland Village Limited Partnership, a Minnesota limited partnership (the "Owner") as to the activities contemplated therein, have heretofore been assembled or prepared by staff or others and submitted to the Board and/or made a part of the City and EDA files and proceedings on the Plan. The Reports include information constituting or relating to the bases for the other findings • and determinations made in this resolution. The Board hereby confirms, ratifies and adopts the 457406v1 RC110-47 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. 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 Economic 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 "housing district" 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 development proposed to be constructed in the TIF District is an approximately 49 unit rental housing facility (the "Development"), and the Owner . has represented that at least 40% of the units will 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 the Board of Commissioners, 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 TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole. (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 Tax Increment Financing District by private enterprise. 2.04. The EDA elects to retain all of the captured tax capacity to finance the costs of the TIF District. • 2.05. The provisions of this Section 2 are hereby incorporated by reference into and made a part of the TIF Plan. 2 4574060 RC11047 . 2.06. The Board further finds that the Plans are intended and in the judgment of the Board its 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 District and file the Plans with the Commissioner of Revenue and the Office of the State Auditor. Section 3. Approval of Development Agreement. 3.01. The Owner has presented the EDA with a proposal for the construction by the Owner and AV Roch, LLC (the "Developer") of the Development, and there has been prepared and presented to the Board for its consideration a certain Development Assistance Agreement (the "Agreement") between the EDA, the Owner and the Developer, stating the Owner's and 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 Agreement substantially in the form presented to the Board, together with any related documents necessary in connection therewith (collectively, the "Development Documents") 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. • 3.03. The approval hereby given to the Development 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 officers, any of the 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 Increment Revenue Bond thereunder. 3.05. The Board hereby determines that the execution and performance of the Development Documents will help realize the public purposes of the Act. 3 457406v1 RC110-47 • • • Section 4. Interfund Loans. 4.01. The Board hereby approves a policy on interfund loans or advances ("Loans") for the TIF District, as follows: (a) The authorized tax increment eligible costs (including without limitation out-of-pocket administrative expenses) payable from the TIF District, as its TIF Plan 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's or EDA's general fund or other City or EDA fund 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 the adopted and, if applicable, amended TIF Plan budget for the TIF District. (d) The maximum term of any Loan shall not exceed the lesser of the statutory duration limit of the TIF District or 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 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.40 or 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. PASSED AND ADOPTED BY THE ROCHESTER ECONOMIC DEVELOPMENT 2015. BOARD OF COMMISSIONERS OF THE AUTHORITY, THIS 2ND DAY OF MARCH, 2 457406v1 RC110-47 • Board Member Wojcik moved the adoption of the foregoing resolution, which motion was duly seconded by Board Member Campion, and upon vote being taken thereon, the following Board Members voted in favor thereof: • • All and the following Board Members voted against the same: None whereupon said resolution was declared duly passed on adopted. PASSED AND ADOPTED BY THC ECONOMIC DEVELOPMENTAUTHIORITV OF THE CITY OF ROCHESTER, MINNESOTA, THIS 2nd DAY OF MARCH , 2015, z 6o�� AQ PRESIDENT i ATTEST:�- CITY CLERK APPROVED THIS 3rd DAY OF MARCH , 2015, MAYOR OF SAID CITY 5 457406v1 RC IOA7