HomeMy WebLinkAboutResolution No. 095-17 - Establish.DevDistrict#56andTIF#56-1.RiverGlen
RESOLUTION NO. ______
ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY
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 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.
56 (the “Development District”), adopt the Economic Development Plan for the Development
District (the “Development Plan”), establish Housing Tax Increment Financing District No. 56-1
(River Glen Project) within the Development District (the “TIF District”) and adopt a Tax
Increment Financing Plan therefor (the “TIF Plan” and, together with the Development Plan, the
“Plans”), all pursuant to and in conformity with applicable law, including Minnesota Statutes,
Sections 469.001 through 469.047, Sections 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. 56 of the Rochester Economic Development Authority and Tax Increment Financing
Plan for Housing Tax Increment Financing District No. 56-1 (River Glen Project),” dated
February 22, 2017, 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 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 Village Capital Corporation, an Indiana corporation or an affiliate thereof (the
“Developer”) 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 proceedings on the Plans. The Reports include information constituting or relating to
(1) why the assistance satisfies the so-called “but for” test and (2) the bases for the other findings
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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 13 two-story garden-style buildings containing approximately 208-units, surface
parking, detached garages and a clubhouse with all related improvements to be completed,
owned and operated by the Developer (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
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 Developer 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. Interfund Loans.
3.01. 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 in an amount up to $523,037, interest in an amount
up to $700,000 and other project costs in an amount up to $4,007,335) 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 $5,230,372 outstanding at any time.
(d) All Loans shall mature not later than February 1, 2046 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).
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(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 BOARD OF COMMISSIONERS OF THE
ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY, THIS 22ND DAY OF
FEBRUARY, 2017.
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Board Member _______________________ moved the adoption of the foregoing
resolution, which motion was duly seconded by Board Member _______________________,
and upon vote being taken thereon, the following Board Members voted in favor thereof:
and the following Board Members voted against the same:
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 February 22, 2017, 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. 56 and Tax Increment Financing District No. 56-1 therein.
WITNESS My hand this ____ day of February, 2017.
_______________________________________
Secretary
Rochester Economic Development Authority
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