HomeMy WebLinkAbout2021-164 CCRI Y OF 151k &L Y IN ur�IN I ni��
COUNTY OF HENNEPIN
STATE OF MINNESOTA
DEVELOPMENT AND REDEVELOPMENT PROJECT NO, 1, ESTABLISHING TAX
NCREMENT FINANCING DISTRICT NO, 9 THEREIN AND APPROVING A TAX
NCREMENT FINANCING PLAN THEREFOR
)f Brooklyn Center, Minnesota (the "EDA") modify the Redevelopment Plan for its Housing and
Zedevelopment Project No. 1 (the "Redevelopment Project"); establish Tax Increment Financing
District No. 9* Crest Apartments (a housing district) ("TIF District No. 9") within the
Zedevelopment Project; and adopt the related Tax Increment Financing Plan (the "TIF Plan")
herefor; all pursuant to and in conformity with applicable law, including Minnesota Statutes,
'ect'ons 469.174 to 469.1794,
1 as amended (the "TIF Act"), Minnesota Statutes, Sections 469.001
o 469.047 and Sections 469.090 to 469, 1081, all inclusive, as amended, (collectively, and together
,vith the TIF Act, the "Act"), and all as reflected in that certain document entitled in part
'Modification of the Redevelopment Plan for Housing Development and Redevelopment Project
o. I and Tax Increment Financing Plan for Tax Increment Financing District No. 9e Crest
kpartments (a Housing District)," dated December 13, 2021 (collectively, the "Plans"), presented
76r consideration by the City Council (the "Council") of the City of Brooklyn Center, Minnesota
'he 4�CiV5);
ni ismation and material �coilectively, the Materials relating to the I Ir Plan and to the activities
,ontemplated in TIF District No. 9 have heretofore been prepared and submitted to the Council
md/or made a part of the City files and proceedings on the TIF Plan. The Materials include the
ax increment application, project pro fortna financial statement, project sources and uses and other
nformation supplied by Aeon, a Minnesota nonmmprofit corporation (or one or more limited
)artnershi s or other entities to be formed thereby or affiliated therewith, the "Developer") as to
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he activities contemplated therein, the items listed under the heading "Supporting
Documentation" in the TIF Plan, and information constituting or relating to (1) why the assistance
atisfies the so,,,called "but for" test and (2) the bases for the other findings and determinations
nade in this resolution. The Council hereby confirms, ratifies and adopts the Materials, which are
iereby incorporated into and made as fully a pall of this resolution to the same extent as if set forth
n full herein,*
WHEREAS, the City has perforined all actions required by law to be performed prior to
ommissioner representing the area of the County to be included in TIF District No. 9, delivery
a
)f the Plans to Hennepin County and Independent School District No. 281 (Robbinsdale), and the
-iolding of a public hearing by the City thereon following notice thereof published in accordance
,vith state laws,
WHEREAS, the Council has considered the documentation submitted in support or I tv
District No, 9 and the Plans and has taken into account the information and knowledge gained in
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iearings upon and during consideration of other matters relating to the -proposed development;
WHEREALS, IN District No. 7 is being est is e LO CI ILat.Q C; auqu 31 1011 0 au
ipproximately 122�unit rental housing facility located at 6221 Shingle Creek Parkway in the City,
he rehabilitation thereof to include, among other things, one additional unit, and the construction
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)f an approximately 48�unit addition and related amenities to be located on the same property in
rIF District No. 9 (the "Development") to be constructed by the Developer.
f Brooklyn Center, Minnesota (the "City"), as follows:
ind the Redevelopment Plan is not being modified other than to incorporate the establishment of
FIF District No. 9 therein and therefore the Council reaffirnis the findings and determinations
)riginally made in connection with the establishment of the Redevelopment Project area and the
idoption of the Redevelopment Plan therefor. The Council hereby finds thats (a) the land within
he Project Area would not be available for redevelopment without the financial aid to be sought
mder the Plans; (b) the Plans will afford maximum opportunity, consistent with the needs of the
ity as a whole, for the development of the Project Area by private enterprise; and (c) the Plans
,onform to the general plan for the development of the City as a whole, and otherwise promotes
,ertain public purposes and accomplishes certain objectives as specified in the Plans, including
,vithout limitation the development of affordable housing. The purposes and development
ictivities set forth in the Redevelopment Plan, as modified, are hereby expanded by to include all
levelopment and redevelopment activities occurring within the TIF District.
1 Al �M 0 41 1� -k -r, r10 +-ka+ TTV T-)Iqf-r1ptNTn 0 Iq I" flip ifkllp i-nfprpQt n-ncl liz q
Musing disuict within the meaning o Lune;!)ULa LULLIWS, CC 011 1 V 1,31ull
)ecause it consists of a project or portions of a project intended for occupancy, in part, by persons
)r families of low and moderate income as defined in Chapter 462A, Title 11 of the National
Jousing 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. No more than 20% of the square footage of buildings that receive assistance from tax
ncrements will consist of commercial, retail or other nonresidential uses.
The Develonment to be constructed in TIF District No. 9 will consist of approximately 171
inits (i.e., 69 units) will be rented to and occupied by individuals or families whose income is not
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)reater than 60% or less of area median income and that no more than 20% of the square footage
)f buildings that receive assistance from tax increments will consist of commercial, retail or other
'dent'al uses.
ionresi I
1.03. The Council hereby makes the following additional findings in connection with I ir
:)istrict No. 9 o
a) Ine Council furi er finds LRUL the proposed development, in the opinion o
he Council, would not occur solely through private investment within the reasonably
oreseeable future and, therefore, the use of tax increment financing is deemed necessary.
Fhe specific basis for such finding being:
P
e reasonably foreseeable future. The rents for affordable housing
rojects do not provide a sufficient return on investment to stimulate
ew development. The Developer has represented that it could not
roceed with the Development without the tax increment assistance
o be provided to the Developer. The Developer has provided the
ity its estimated Development proforma outlining project sources
nd uses as well as projected rent, vacancy and financing
ssumptions. City staff and the City's advisors reviewed the
.iformation and have determined the Development is not feasible
Vithout the proposed assistance due to anticipated rent levels and
arket returns not supporting the development costs. Based on the
eview, the City does not expect that a development of this type
ould occur in the reasonably foreseeable future but for the use of
ax increment assistance,
he development or redevelopment of the City as a whole. Me specific basis for such
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nding being.
L r-PTU DI I -F fk�
ity and will generally complement and serve LO imp ement po icies
dopted in the City's comprehensive plan. The development
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ontemplated on the property is in accordance with the existing
i i
oning for the property, as modified in accordance with an approved
lanned unit development agreement,
c) The Council further finds that the TIF Plan will afford
IF District No. 9 by private enterprise. The specific basis for such finding beingo
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The proposed Development to occur within TIF District No. 9 is the
ncome multi4amily rental housing. The Development will increase
e taxable market valuation of the City, and the number of available
ow and moderate income multi4amily housing units in the City,
'hrough the implementation of the TIF Plan, the City will provide
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n impetus for residential development, which is desirable or
ecessary tor increased population and an increased need tor
orkforce, life cycle, and affordable housing within the City,
1 9 Uff Me City e1eCLS Me method of Lax increment computation seL WIL11 in ivinineSOLa
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Section 469.177, Subdivision 3(b). The City elects to retain all of the captured tax
Aatutes,
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apacity to finance the costs of TIF District No. 9 and the Redevelopment Project and elects to
clay the recei t of the first increment until tax payable year 2024.
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i pail of the TIF Plan and the findings set forth in Appendix C to the TIF Plan are hereby
ncorporated by reference into and made a pail of this Resolution,
ouncil their effect will be to promote the public purposes and accomplish the objectives specified
n the TIF Plan for TIF District No. 9 and the Redevelopment Plan for the Redevelopment Project.
Advances,
)n this date, including without limitation the findings and statements of objectives contained
-herein, are hereby approved, ratified, established, and adopted and shall be placed on file in the
a
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)ffice of the Finance Director. Approval of the Plans does not constitute approval of any project
)r a development agreement with any developer. The Business and Development Director is
a 0 a
iereby directed to request, in writing, the Hennepin County Auditor to certify the new TIF District
14o. 9 and to file the Plans with the Commissioner of Revenue and the Office of the State Auditor,
IF District No. 9, as follows:
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�U Fu� " 111 11 0 1 IV �F "F
[p to $1,514,751 and other development costs in an amount up to $4,697,782) payable
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om TIF District No. 9, as provided in the TIF Plan as originally adopted or as it may be
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mended, may need to be financed on a shortAerm and/or longAerm basis via one or more
oans, as may be determined by the City Finance Director from time to time.
(b) The Loans mav be advanced if and as needed from available monies in the
e structured as draw -down or "line of credit" obligations of the lending fund(s),
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(c) Neither the maximum principal amount of any one Loan nor the aggregate
(d) All Loans shall mature not later than February 1, 2050 or such earlier date
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r in part, whether from tax increment revenue, tax increment revenue bond proceeds or
ther eligible sources.
e) Ine outstanding and unpaid principal amount ot each Loan shall bear
nterest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178,
ubdivision 7), which is the greater of the rates specified under Sections 270C.40 or 549.09
I the time a Loan, or any pall of it, is first made, subject to the right of the City Finance
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irector to specify a lower rate (but not less than the City's then�current average
rivestment return for similar amount and term).
b V �.V_v 6
ot take any particular form and may be undocumented, except that the City Finance
)irector shall specify the principal amount and interest rate and maintain all necessary or
[pplicable data on the Loans.
.nember Ryan
Butler, Elliott, Lawrence�Anderson, Ryan
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ind the following voted against the same,
None
vhereupon said resolution was declared duly passed and adopted.
I y ULhK& �� UhK I it, IUA I h
, the undersigned, being the duly qualitied and acting City Clerk ot the UlLy of.Brooklyn
enter, iv-LlnnesOLa, Liu HERE-D Y CER-1-IF Y that I ave care Y collipalu u aLLau %� an
Mg011ig uzulaC 0 1111 a "I my
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