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HomeMy WebLinkAboutResolution No. 121-24 - EDA - Resolution - Substandard Buildings and Development and Demolition Agreement - Stack Downtown EDA RESOLUTION NO. CITY COUNCIL RESOLUTION NO. Rochester Economic Development Authority County of Olmsted, State of Minnesota Finding Parcels to be Occupied by Structurally Substandard Buildings. 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 EDA has received a Redevelopment TIF District Eligibility Assessment prepared by Christopher Colby Architect and dated May 31, 2024 (the “CCA Report”) for the property legally described as Lots 7, 8, 9, 10, 11, 12, 13, 15, and 16, Block 33, Northern Addition, Olmsted County, Minnesota (the “Property”). d. Based on the CCA Report, the conditions found by the EDA to exist throughout the proposed tax increment financing district consisting of 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. e. 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. f. There exists on each parcel or parcels in the Property one or more structurally substandard buildings to be demolished or removed (the “Buildings”). g. 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. RC110-55-957136.v2 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 the Findings; and (b) based on the CCA Report, that parcels consisting of over 70% of the area of the Property are occupied by improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance and that after demolition and clearance the EDA and the Council intend to include the Property within a proposed tax increment financing district. b. Based on representations of the owner of the property, Stack Downtown Investments LLC a Minnesota limited liability corporation (the “Owner”), there have been no improvements made to the Buildings since the completion of the CCA Report and the condition of the Buildings continue 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 Buildings, 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 17Day of June, 2024. PRESIDENT OF SAID AUTHORITY SECRETARY OF SAID AUTHORITY RC110-55-957136.v2 BE IT RESOLVED by the Common Council of the City of Rochester, MN that the Council does concur with and authorize this designation. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2024. ___________________________________ PRESIDENT OF SAID COMMON COUNCIL ATTEST: __________________________ CITY CLERK APPROVED THIS _____ DAY OF ______________________, 2024. ___________________________________ MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) RC110-55-957136.v2