HomeMy WebLinkAboutResolution No. 282-11 ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF OLMSTED
• STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT DISTRICT
AND TAX INCREMENT FINANCING DISTRICT AND APPROVING TAX
INCREMENT FINANCING PLAN AND DEVELOPMENT AGREEMENT
BE IT RESOLVED by the Board of Commissioners (the `Board") of the Rochester
Economic Development Authority, 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. 38-1 within the Development District(the "Tax
Increment 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 Board's consideration.
• 1.02. The Board has investigated the facts relating to the Development District, Tax
Increment District and 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 and EDA 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 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 Board 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 Board 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 and Approval of Economic Development District No. 38.
2.01. The Board hereby approves the establishment of Economic Development District
• No. 38 pursuant to Minnesota Statutes, Section 469.101. The Authority finds that the economic
development district is proper and desirable to establish and develop within the City
Section 3. Findings for the Adoption and Approval of the Plan.
3.01. The Board hereby fords 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.
3.02. The Board hereby makes the following additional findings in connection with the
Tax Increment 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 Tax Increment Financing Plan conforms
to the general plan for the development or redevelopment of the City as a whole.
(c) The Board 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.
(d) For purposes of compliance with Minnesota Statutes, Section 469.175,
Subdivision 3(2),the Board 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 Board 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.
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3.03. The provisions of Section 3.02 are hereby incorporated by reference into and
made a part of the Tax Increment Financing Plan.
3:04. The Board further finds that the Plan is intended and in the judgment of the Board
its effect will be to promote the public purposes and accomplish the objectives specified in the
Tax Increment Financing Plan for the TIF District.
3.05. The Plan, 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.
Section 4. Approval of Development Agreement.
4.01. WVE, Limited Partnership (the "Company")has presented the EDA with a
proposal for the construction within the Development District of a certain housing development,
and there has been prepared a certain Development Agreement(the "Agreement")between the
EDA and the Company, stating the terms and conditions of such development and the EDA's
and the Company's responsibilities respecting the assistance thereof,has been presented to the
Board for its consideration.
4.02. The Board hereby approves the Agreement substantially in the form presented to
the Board 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, with such
• additions and modifications as those officers may deem desirable or necessary, as evidenced by
their execution thereof.
4.03. Upon execution and delivery of the Agreement,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 Agreement,including without limitation the
issuance of the TIF Note thereunder.
4.04. The Board hereby determines that the execution and performance of the
Agreement will help realize the public purposes of the Act. .
Section 5. Interfund Loans.
5.01. The Board 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.
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(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 Tax Increment District.
(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 BOARD OF COMMISSIONERS OF THE
ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA, THIS 6TH DAY
OF DUNE, 2011.
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Councilmember Staver moved the adoption of the foregoing
resolution, which motion was duly seconded by Councilmember Hruska ,
and upon vote being taken thereon,the following Councilmembers voted in favor thereof:
President Dennis Hanson, Councilmembers Ed Hruska, Sandra Means, Randy Staver
and the following Councilmembers voted against the same:
Councilmembers Mark Bilderback, Bruce Snyder, Michael Wojcik
whereupon said resolution was declared duly passed on adopted.
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SECRETARY'S CERTIFICATE
I, the undersigned, being the duly qualified and acting Secretary of the Rochester
Economic Development Authority, Minnesota, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes of a duly called and regularly held
meeting of the Board of Commissioners held on June 6, 2011, with the original minutes thereof
on file in my office and I further certify that the same is a full, true, and correct transcript thereof
insofar as said minutes relate to the tax increment and related actions referenced therein with
respect to the. EDA's Economic Development District No. 38 and Tax Increment Financing
District No. 38-1 therein.
WITNESS My hand this 7rel day of June, 2011.
Secr ary
Rochester Economic Development Authority,
Minnesota
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