HomeMy WebLinkAboutResolution No. 123-16 - ValleyhighVillas.EstabDevelopDist#52 andTIF#52-1RESOLUTION NO.
CITY OF ROCHESTER
COUNTY OF OLMSTED
STATE OF MINNESOTA
RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT DISTRICT AND
ECONOMIC DEVELOPMENT PLAN THEREFOR AND APPROVING A HOUSING 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. 52 (the "Development District"), adopt
the Economic Development Plan for the Development District (the "Economic Development
Plan"), establish Housing Tax Increment Financing District No. 52-1 (Valleyhigh Villas Project)
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
469.001 through 469.047, 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. 52 of the
Rochester Economic Development Authority and Housing Tax Increment Financing Plan for
Tax Increment Financing District No. 52-1 (Valleyhigh Villas Project)," dated March 21, 2016,
and presented for the Council's consideration.
1.02. The Council 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 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
thereon by the City 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 Plans, including the tax increment application made and other information
supplied by Valleyhigh Villas, 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 Council and/or made a part of the City and EDA files and
proceedings on the Plans. The Reports include information constituting or relating to the bases
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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.
1.05. The TIF District is being established to facilitate the construction of an
approximately 139-unit, four story senior housing apartment building with elevator access, an
underground parking garage, surface parking, multiple community rooms, an exercise room and
unit laundry with all related improvements to be completed, owned and operated by the Owner
(the "Development").
Section 2. Findings for the Adoption and Approval of the Plans.
2.01. The Council 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 Council 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 Owner has represented that at least 40% of the units in the
Development 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 Council hereby makes the following additional findings in connection with
the TIF District:
(a) The Council further finds that the proposed development, in the opinion of
the 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 Development will result in the construction of low and moderate
income housing units which would not otherwise be constructed in the
reasonably foreseeable future. The rents for affordable housing projects
do not provide a sufficient return on investment to stimulate new
development. The Owner has represented that it could not proceed with
the Development without tax increment assistance.
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(b) The Council further finds that the TIF 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 TIF Plan will generally complement 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 Council 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 TIF District by private enterprise. The specific basis for such finding being:
The proposed Development to occur within the TIF District is the
construction by private enterprise of primarily low and moderate income
multi -family workforce housing. The development will increase the
taxable market valuation of the City. The available multi -family
workforce housing in the City will expand by approximately 139 rental
units with the completion of the Development and help fulfill the need
for such housing in the City.
2.04. The City 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.
2.06. The Council further finds that the Plans are intended and in the judgment of the
Council its effect will be to promote the public purposes and accomplish the objectives specified
therein.
Section 3. Approval and Adoption of the Plans; Policy on Interfund Loans and
Advances.
3.01. The Plans, 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. Upon
approval by the EDA, City 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.
3.02. The Council 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
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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 $2,550,712 outstanding at any time.
(d) All Loans shall mature not later than February 1, 2045 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 revenue 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 COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS 21ST DAY OF MARCH, 2016.
PRESIDENT OF SAID COMMON COUNCIL
ATTEST:
CITY CLERK
Approved this day of March, 2016.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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Councilmember moved the adoption of the foregoing
resolution, which motion was duly seconded by Councilmember ,
and upon vote being taken thereon, the following Councilmembers voted in favor thereof:
and the following Councilmembers voted against the same:
whereupon said resolution was declared duly passed on adopted.
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CITY CLERK'S CERTIFICATE
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Rochester, 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 Common Council
of said City held on March 21, 2016, 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 actions referenced therein with respect to the EDA's Economic Development
District No. 52 and Tax Increment Financing District No. 52-1 therein.
WITNESS My hand this day of March, 2016.
City Clerk
Rochester, Minnesota
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