HomeMy WebLinkAboutResolution No. 280-11 cam+ 'i
CITY OF ROCHESTER
COUNTY OF OLMSTED
STATE OF MINNESOTA
RESOLUTION NO. ,�W-1�
RESOLUTION APPROVING A
TAX INCREMENT FINANCING DISTRICT
AND A TAX INCREMENT FINANCING PLAN THEREFOR
BE IT RESOLVED by the Common Council (the "Council") of the City of Rochester,
Minnesota(the "City"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Rochester Economic Development Authority (the
"EDA") establish Economic Development District No. 38 (the "Development District"); and
establish Tax Increment Financing District No. 318-1 within the Development District and adopt a
Tax Increment Financing Plan therefor(the"Plan"); all pursuant to and in conformity with
applicable law, including Minnesota Statutes, Sections 469.090 through 469.1082 and Sections
469.174 through 469.1799, as amended; all as reflected in that certain document entitled in part
"Economic Development District No. 38 of the Rochester Economic Development Authority,
Minnesota and Tax Increment Financing District and Plan No. 38-1," dated June 6,2011, and
presented for the Council's consideration.
• 1.02. The Council has investigated the facts relating to the Plan.
1.03. The EDA has performed all actions required by law to be performed prior to the
adoption and approval of the Plan, including but not limited notice to the County Commissioner
representing the area of the County to be included in the Tax Increment Financing District No.
38-1, delivery of the 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 newsp aper 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 WVE, Limited Partnership (the"Company") and to the activities contemplated therein, have
heretofore been assembled or prepared by staff or others and submitted to the Council and/or
made a part of the City and EDA files and proceedings on the Plan. The Reports include data,
information and/or substantiation constituting or relating to (1)the "studies and analyses" on
why the new Tax Increment District meets the so-called"but for"test and (2)the bases for the
other findings and determinations made in this resolution. The Council hereby confirms, ratifies
and adopts the 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.
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Section 2. Findings for the Adoption and Approval of the Plan.
• 2.01. The Council hereby finds that Tax Increment Financing District No. 38-1 is in the
public interest and is a"housing district"within the meaning of Minnesota Statutes, Section
469.174, Subdivision 11,because the proposed project is an approximately 47 unit multi-family
rental housing development(the "Development"), of which not less than 40% of the rental units
will be available for persons whose incomes do not exceed 60% of area median income, all as
represented by the Company. Such tax increment assistance as may hereafter be approved by the
EDA for the Development shall be used solely to finance the Development, as required by
Minnesota Statutes, Section 469.176, Subdivision 4d, and the Development shall without
limitation be required to meet the applicable income limitations provided in Minnesota Statutes,
Section 469.1761.
2.02. The Common Council hereby makes the following additional findings in
connection with the Tax Increment District:
(a) The Common Council further finds that the proposed development, in the
opinion of the Common Council,would not occur solely through private investment
within the reasonably foreseeable future and,therefore, the use of tax increment financing
is deemed necessary. The specific basis for such finding being:
The property on which the housing project will occur would not be
developed in the reasonably foreseeable future because it is
designed for low income residents that cannot afford market level
rents. The land assembly and redevelopment costs are higher than
normal for a project of this size. The developer has represented
that it could not proceed with the housing project without tax
increment assistance.
(b) The Common Council further finds that the Tax Increment Financing Plan
conforms to the general plan for the development or redevelopment of the City as a
whole. The specific basis for such finding being:
The Tax Increment Financing Plan will generally compliment and
serve to implement policies adopted in the City's comprehensive
plan. The housing development contemplated on the property is in
accordance with the existing zoning for the property.
(c) The Common Council further finds that the Tax Increment Financing 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. The
specific basis for such finding being:
The proposed development to occur within the Tax Increment
Financing District is low income housing and is in an area targeted
for redevelopment by the City. The development will increase the
taxable market valuation of the City, and the available low income
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housing in the city will be expanded by approximately 47 units of
rental housing.
. (d) For purposes of compliance with Minnesota Statutes, Section 469.175,
Subdivision 3(2),the City Council hereby finds that the increased market value of the
property to be developed within the Tax Increment District that could reasonably be
expected to occur without the use of tax increment financing is $0,which is less than the
increased market value estimated to result from the proposed development(i.e.,
$2,820,000) after subtracting the present value of the projected tax increments for the
maximum duration of the Tax Increment Financing District(i.e., approximately
$536,000). In making these findings,the City Council has noted that the property has not
been redeveloped for many years and would likely remain so if tax increment financing is
not available. Thus,the use of tax increment financing will be a positive net gain to the
City,the School District, and the County, and the tax increment assistance does not
exceed the benefit which will be derived therefrom.
2.03. The provisions of this Section 2.02 are hereby incorporated by reference into and
made a part of the Tax Increment Financing Plan.
2.04. The Council further finds that the Plan is intended and in the judgment of the
Council its effect will be to promote the public purposes and accomplish the objectives specified,
in the Tax Increment Financing Plan for the TIF District.
Section 3. Approval and Adoption of the Plan.
• 3.01. The Plan, as presented to the Council 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 City Clerk. EDA staff
shall, in writing,request the Olmsted County Auditor to certify the new TIF District.
3.02. The Council hereby approves a policy on interfund loans or advances ("Loans")
for this Tax Increment District, as follows:
(a) The authorized tax increment eligible costs (including without limitation
out-of-pocket administrative expenses)payable from the 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 general fund or other City fund designated by the City Finance Director. Loans
may be structured as draw-down or"line of credit" obligations of the lending Rmd(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 Tax Increment District.
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(d) The maximum term of any Loan shall not exceed the lesser of the
statutory duration limit of the Tax Increment 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,TIF 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 270.75 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 maintain all necessary or applicable data on the Loans.
PASSED AND ADOPTED BY THE COMMON CIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS 6TH DAY OF , 2011.
PRESIDENT OF SAID COMMON COUNCIL
ATTEST:
CITY CL
Approved this 71rf day of June, 2011.
MAYOR OF SAID CITY
(Seal of the City of
Rochester,Minnesota)
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