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HomeMy WebLinkAbout1997-013 EDAR1 Commissioner Kay Lasman introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 97 -13 RESOLUTION MODIFYING TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 03 BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority in and for the City of Brooklyn Center, Minnesota "Authority as follows: Section 1. Recitals. 1.01. The City of Brooklyn Center "City approved the creation of Tax Increment Financing District No. 03 "TIF District and a Tax Increment Financing Plan "TIF Plan for that district, by Resolution No. 94 -273 approved December 19, 1994, all in accordance with Minnesota Statutes, Section 469.174 to 469.176 (the "TIF Act 1.02. Under Section 469.175, Subd. 4, of the TIF Act, the Authority is authorized to modify the TIF Plan without the notice and approval procedures required for approval of the initial plan if the modification does not involve reduction or enlargement of the geographic area of the district, increase in the amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the Authority, increase in total estimated tax increment expenditures or designation on additional property to be acquired by the Authority. 1.03. The Authority has determined a need to modify the categories of tax increment expenditures without increasing the total estimated budget or total bonded indebtedness in the TIF Plan. Section 2. TIF Plan Modified 2.02. The Estimate of Public Costs set forth in Section G of the TIF Plan is hereby modified as follows: Qualified Costs Land Acquisition a. Commercial $6,000,000 b. Industrial 7,000,000 Public Improvements a. Streetscape 4,500,000 b. Public Works /Stormwater 3,500,000 Demolition and Relocation 1,000,000 Site Preparation 1,000,000 1 EDA RESOLUTION NO. 97 -13 Administrative, Legal, Engineering and Consulting Fees 2,900,000 Housing Development Account 5,000,000 Property Acquisition of Multi- Family Units Rehabilitation of Multi- Family Units Acquisition of Blighted Single Family Housing Rehabilitation of Blighted Senior Housing Contingency 1.000.000 Total Estimated Project Costs: $31,900,000 Any funds to be expended for off -site improvements outside the boundaries of District No. 03 but within the boundaries of Housing Development and Redevelopment Project No. 1 would be less than 25 percent of total tax increment generated by District No. 03, including administrative costs, provided that tax increment deposited in the housing development account may be spent on eligible housing activities located anywhere in the City, as provided in the Special Act. H. ESTIMATED AMOUNT OF LOAN /BONDED INDEBTEDNESS It is anticipated that the City or Authority may issue a revenue bond, general obligation bond, or other type of obligation in one or more series to finance public costs. The original principal amount of all indebtedness is not expected to exceed $29,000,000, with additional increments to be paid to capitalized and other interest determined at the time of issuance. I. SOURCES OF REVENUE The major source of revenue to be used to finance public costs associated with the public development projects in Housing Development and Redevelopment Project No. 1 is tax increment generated as a result of the taxation of the land and improvements in District No. 03. Tax increment financing refers to a funding technique that utilizes increases in valuation and the property taxes attributable to new development to finance, or assist in the financing, of public development costs. Additional sources of revenue may include, but are not limited to, investment income and land sales. This does not preclude the City, the Authority, or the developer from using other funds, at its discretion, to pay such costs. Notwithstanding anything to the contrary in this Section, amounts listed above may vary among categories, provided that aggregate expenditures will not exceed the total listed above. 2.03. Authority staff are authorized and directed to attach a copy of this resolution to the TIF Plan in the Authority's files for the TIF District, and to transmit a copy of the resolution to the Department of Revenue. 1 1 EDA RESOLUTION NO. distno3. res April 28, 1997 Date 97 -13 Presid� The motion for the adoption of the foregoing resolution was duly seconded by commissioner Kathleen Carmody and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kathleen Carmody, Kay Lasman, and Robert Peppe; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.