HomeMy WebLinkAboutResolution No. 127-16 EDA TIF #52-1, DD #52RESOLUTION NO.
ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF OLMSTED
STATE OF MINNESOTA
RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT DISTRICT AND
ECONOMIC DEVELOPMENT PLAN THEREFOR, APPROVING A HOUSING TAX
INCREMENT FINANCING DISTRICT AND A TAX INCREMENT FINANCING PLAN
THEREFOR AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT
ASSISTANCE AGREEMENT
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Rochester
Economic Development Authority (the "EDA"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the EDA establish Economic Development District No.
52 (the "Development District"), adopt the Economic Development Plan for the Economic
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 Tax Increment Financing Plan for Housing Tax Increment
Financing District No. 52-1 (Valleyhigh Villas Project)," dated March 21, 2016, and presented
for the Board's consideration.
1.02. The Board 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 of Rochester, Minnesota (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 Board and/or made a part of the City and EDA files and
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proceedings on the Plans. The Reports include information constituting or relating to 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.
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 Board 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 Board 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 Board hereby makes the following additional findings in connection with the
TIF District:
(a) The Board further finds that the proposed development, in the opinion of
the Board, 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 TIF Plan conforms to the general plan for
the development or redevelopment of the City as a whole.
(c) The Board 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.
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2.04. The EDA 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 Board further finds that the Plans are intended and in the judgment of the
Board its effect will be to promote the public purposes and accomplish the objectives specified
therein.
2.07. The Plans, 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 and file the Plans with the Commissioner of Revenue and the Office of the State Auditor.
Section 3. Approval of Development Assistance Agreement.
3.01. The Owner has presented the EDA with a proposal for the construction of the
Development by the Owner and VV Roch LLC (the "Developer"), and there has been prepared
and presented to the Board for its consideration a certain Development Assistance Agreement
(the "Agreement") between the EDA, the Owner and the Developer, stating the Owner's and
Developer's responsibilities and the terms and conditions the EDA's assistance with the
financing of certain costs of the Development.
3.02. The Board hereby approves the Agreement in substantially the form presented to
the Board, together with any related documents necessary in connection therewith (collectively,
the "Development Documents") 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, and to carry out, on behalf of the EDA, the EDA's obligations thereunder; provided
however that this authorization by the EDA shall expire if the Agreement is not executed by the
Developer within 90 days after the date hereof.
3.03. The approval hereby given to the Development Documents includes approval of
such additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate and
approved by legal counsel to the EDA and by the officers authorized herein to execute said
documents prior to their execution; and said officers are hereby authorized to approve said
changes on behalf of the EDA. The execution of any instrument by the appropriate officers of
the EDA herein authorized shall be conclusive evidence of the approval of such document in
accordance with the terms hereof. In the event of absence or disability of the officers, any of the
documents authorized by this Resolution to be executed may be executed without further act or
authorization of the Board by any duly designated acting official, or by such other officer or
officers of the Board as, in the opinion of the City Attorney, may act in their behalf
3.04. Upon execution and delivery of the Development Documents, the officers and
employees of the EDA are hereby authorized and directed to take or cause to be taken such
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actions as may be necessary on behalf of the EDA to implement the Development Documents,
including without limitation the issuance of the Tax Increment Revenue Bond thereunder.
3.05. The Board hereby determines that the execution and performance of the
Development Documents will help realize the public purposes of the Act.
Section 4. Interfund Loans.
4.01. The Board 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
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 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 $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.
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PASSED AND ADOPTED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF
THE CITY OF
ROCHESTER, MINNESOTA, THIS DAY OF , 2016.
COUNCIL
ATTEST:
rr�lr 311Jr,1V 1 Vr 3 i11J l,vlvilvivly
CITY CLERK
APPROVED THIS DAY OF .2016.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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Board Member Wojcik moved the adoption of the foregoing resolution, which motion
was duly seconded by Board Member Campion, and upon vote being taken thereon, the
following Board Members voted in favor thereof. All
and the following Board Members voted against the same: None
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, 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 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 22 day of March, 2016.
Secretary
Rochester Economic Development Authority
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