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HomeMy WebLinkAboutResolution No. 531-05 S CITY OF ROCHESTER COUNTY OF OLMSTED • STATE OF MINNESOTA RESOLUTION NO. RESOLUTION APPROVING DEVELOPMENT PROGRAM AND TAX INCREMENT FINANCING PLAN BE IT RESOLVED by the Common Council (the "Council") of the City of Rochester, Minnesota(the "City"), as follows: Section l: Recitals. 1.01. It has been proposed that the City establish Development District No. 32 (the "Development District"); adopt the Development Program for the Development District.(the "Program"); and establish within the Development District, Tax Increment Financing District No. 32-1 (the "TIF District") and adopt a Tax Increment Financing Plan therefor(the "Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 through 469.134 and 469.174 through 469.179; all as reflected in that certain document entitled in part "Development District No. 32 of the City of Rochester, Minnesota," dated October 17, 2005, and presented for the Council's consideration. • 1.02. The Council has investigated the facts relating to the Program and the Plan. 1.03. The City has performed all actions required by law to be performed prior to the adoption and approval of the Program and Plan,including but not limited to 30 days prior notification of the County Auditor, School District Clerk and the individual County Commissioner, a review of the Program and Plan by the Rochester Planning and Zoning Commission, and the holding of a public hearing 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 Program and Plan, including the tax increment application made and other information supplied by or on behalf of Lumber One, Avon, Inc. (the "Company"), the Rochester Area Foundation and/or the Greater Minnesota Housing Fund,have heretofore been assembled or prepared by staff or others and submitted to the Council and made a part of the City files and proceedings on the Program and Plan. The Reports include data, information and/or substantiation constituting or relating to (1)the "studies and analyses" on why the new TIF District meets the "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. • 1807759vl l Section 2. Findings for the Adoption and Approval of the Program and Plan. • 2.01. The Council hereby finds that the TIF District is in the public interest and is a housing district, as defined in Minnesota Statutes, Section 469.174, Subdivision 11, because the single-family, owner-occupied housing project (the "Project") to be assisted with the tax increment consists of housing units intended for purchase by persons or families meeting the applicable income requirements, including without limitation the "first homes" income limits. 2.02. The Council further finds that,based in part upon the nature of the subject properties and the intended development thereof and costs associated therewith(and based also upon the applicable income limits under the "first homes"program),the proposed Project would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary; that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole because the property is properly zoned for the intended uses, and the anticipated development is in furtherance of long range plans of the City for the area; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the Project and the development of the TIF District by private enterprise because they will enable the City to provide and finance suitable and necessary affordable housing inducements. 2.03. The Council further finds that the TIF District is a "qualified housing district" as defined in Section 469.174, Subdivision 29 because the development consists of single-family home ownership units and 95 percent of the homes will be purchased by purchasers whose • income is at or below 85 percent of median gross income for a family of the same size as the purchaser. Median gross income is the greater of(a) area median income or(b) statewide median gross income as determined by the Secretary of the Housing and Urban Development. 2.04. The Council further finds that the Program and Plan are intended and in the judgment of the Council their effect will be to promote the public purposes and accomplish the objectives specified in the Tax Increment Financing Plan for the TIF District and the Development Program for the Development District. Section 3. Approval and Adoption of the Program and Plan; Polite on Interfund Loans and Advances. 3.01. The Program and 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. City 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 1807759v1 2 I 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 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. 1807759vl 3 j PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER,MINNESOTA, THIS l74nDAY OF 2005. 4WSID;�ENTF SAID COMMON COUNCIL ATTEST: CITY:CLERK,ISXP > Approved this LZkiday of , 2005. (Seal of the City of Rochester)Minnesota) MAYOR OF SAID CITY Councilmember ` t)Gy 1 G)(-; moved the adoption of the foregoing resolution,which motion was duly seconded by Councilmember MCCGr n-e) ) , and upon vote being taken thereon, the following Councilmembers voted in favor thereof: l�rnX ydb r oC)Wck�r-b' 'rr ��an Y p-C-C' n�11 YYl.ar C►a T�fcD kx San,dre��'�� and the following Councilmembers voted against the same: �e n� whereupon said resolution was declared duly passed on adopted. 1807759vl 4