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HomeMy WebLinkAbout2013-134 CCR Member Dan Ryan introduced the following resolution and moved its adoption: RESOLUTION NO. 2013-134 RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1 AND A MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 3, AND ADOPTING A MODIFIED TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the City Council (the "Council") of the City of Brooklyn Center, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The Brooklyn Center Economic Development Authority (the "EDA") has heretofore established the Housing Development and Redevelopment Project No. 1 (the "Project Area") and has adopted a redevelopment plan therefor (the "Redevelopment Plan") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended, and established therein Tax Increment Financing District No. 3, created as a redevelopment tax increment financing district under Minnesota Statutes, Section 469.174, Subdivision 10 (the"TIF District"). 1.02. In connection with amending the budget for the TIF District and acquiring certain land for redevelopment, the EDA has asked the Council to approve the Modification to Redevelopment Plan Housing Development and Redevelopment Project No. 1 (the "Redevelopment Plan Modification") and the Modification No. 4 to Tax Increment Financing Plan (A Redevelopment District) (Earle Brown Farm Project), dated November 12, 2013, and presented for the Council's consideration (the "TIF Plan Modification") for the TIF District, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.1794(the"Tax Increment Act"). 1.03. The EDA and the City have performed all actions required by law to be performed prior to the Redevelopment Plan Modification and the adoption and approval of the TIF Plan Modification, including, but not limited to, notification of the Hennepin County Commissioner representing the area of the County in which the TIF District is located, and delivering a copy of the TIF Plan Modification to Hennepin County and Independent School District Districts Nos. 286 (Brooklyn Center), 281 (Robbinsdale), 011 (Anoka-Hennepin), 279 (Osseo), which have taxing jurisdiction over the properties included in the TIF District. The EDA has requested that the City approve the Redevelopment Plan Modification and the TIF Plan Modification following the holding of a public hearing upon published and mailed notice as required by law. 1.04. The Council has investigated the facts relating to the Redevelopment Plan Modification and the TIF Plan Modification. RESOLUTION NO. 2013-134 Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council finds that the boundaries of the Project Area are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the TIF Plan Modification and therefore the Council reaffirms the findings and determinations originally made in connection with the establishment of the Redevelopment Project area and the adoption of the Redevelopment Plan therefor. 2.02. The Council finds that the Redevelopment Plan Modification and the TIF Plan Modification are intended and, in the judgment of the Council, the effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for redevelopment and housing activities associated with better utilizing blighted and underutilized land, enhancing the tax base of the City and providing decent, safe and sanitary housing for residents of the City, in an effort to provide an ongoing benefit to residents in the City and to those who frequent the area in the City and to otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan, as modified, and in the TIF Plan, as modified. 2.03. The Council hereby ratifies and confirms the findings made in connection with the establishment of the TIF District. 2.04. The City Council hereby makes the following additional findings in connection with the TIF Plan Modification: (a) The City Council further finds that the development of the parcels to be acquired by the City, in the opinion of the City 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 property to be acquired would not be developed in the reasonably foreseeable future due to current economic conditions and extensive redevelopment costs including demolition and site remediation costs. And the City faces the need for housing for seniors and other persons and families of low and moderate income which is currently unmet by private development. The project creates a need and opportunity better utilize blighted and underutilized land, to provide decent, safe and sanitary housing for persons of low and moderate income, to enhance the tax base in the City, and to provide maximum opportunity for development of private enterprise consistent with the needs of the City, which are public redevelopment costs that would not be financed by the private sector, particularly due to extensive redevelopment costs including demolition, site remediation and inadequate infrastructure. (b) The Council further finds that the TIF Plan Modification conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: RESOLUTION NO. 2013-134 The TIF Plan Modification will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The public redevelopment contemplated by the TIF Plan Modification is in accordance with the City's comprehensive plan. (c) The Council further finds that the TIF Plan Modification 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 development anticipated to occur within the TIF District and on the parcels to be acquired includes commercial development and housing for persons of low and moderate income consistent with other development in the area and in areas targeted for redevelopment and activities will include land acquisition and acquisition of any necessary right of way, transportation and land use studies, demolition and site preparation, and construction of public utilities and improvements necessary for private redevelopment which will reduce blight and increase the taxable market valuation of the City. 2.05. The provisions of this Section 2 are hereby incorporated by reference into and made a part of the Tax Increment Financing Plan. 2.06. The Council further finds that the TIF Plan Modification and the Redevelopment Plan Modification are intended and in the judgment of the Council their effect will be to promote the public purposes and accomplish the objectives specified in the TIF Plan and the Redevelopment Plan. Section 3. Approval of the TIF Plan Modification and Redevelopment Plan p� p Modification; Interfund Loans. 3.01. The Redevelopment Plan Modification and the TIF Plan Modification are hereby approved. 3.02. The staff of the EDA and the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Redevelopment Plan Modification and the TIF Plan Modification. 3.03. 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, as 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 or the Business and Community Development Director from time to time. RESOLUTION NO. 2013-134 (b) The Loans may be advanced if and as needed from available monies in the City's or the EDA's general fund or other City or EDA fund designated by the City Finance Director or the Business and Community Development Director. (c) Neither the maximum principal amount of any one Loan nor the aggregate principal amount of all Loans may exceed the adopted and, if applicable, amended TIF Plan budget for the TIF District. (d) The maximum term of any Loan shall not exceed the lesser of the statutory duration limit of the TIF District or such earlier date as the City Finance Director or the Business and Community Development Director may specify in writing. All Loans may be prepaid, in whole or in part, whether from tax increment revenue, TIF 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 Section 270.75 or 549.09 of the Statutes at the time a Loan, or any part of it, is first made, subject to the right of the City Finance Director or the Business and Community Development Director to specify a lower rate (but not less than the City's or the EDA's then-current average investment return for similar amount and term). November 12 2013 a Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kris Lawrence-Anderson and upon vote being taken thereon,the following voted in favor thereof: Tim Willson, Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2013-134 CITY CLERK'S CERTIFICATE I,the undersigned, being the duly qualified and acting City Clerk of the City of Brooklyn Center, 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 City Council of said City held on November 12, 2013, 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 tax increment and related actions referenced therein with respect to the Economic Development Authority of the City of Brooklyn Center, Minnesota's Housing and Redevelopment Project No. 1 and Modification of Tax Increment Financing District No. 3 therein. WITNESS My hand this 13 day of November, 2013. City Clerk Brooklyn Center, Minnesota