Loading...
HomeMy WebLinkAbout2015-163 CCR Member Kris Lawrence-Andersoiintroduced the following resolution and moved its adoption: RESOLUTION NO. 2015-163 RESOLUTION APPROVING A MODIFICATION TO THEREDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. I AND ESTABLISHING A TAX INCREMENT FINANCING DISTRICT THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR (TIF District No. 6 — Affordable Senior Housing) WHEREAS, it has been proposed that the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA") modify the Redevelopment Plan for its Housing and Redevelopment Project No. 1 (the "Redevelopment Project"); and establish Tax Increment Financing District No. 6 ("TIF District No. 6) within the Redevelopment Project and adopt the related Tax Increment Financing Plan (the "TIF Plan") therefor (collectively, the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and Sections 469.174 through 469.1794, as amended; all as reflected in that certain document entitled in part "Modification to Redevelopment Plan for Housing Development and Redevelopment Project No. 1 and Tax Increment Financing Plan for Tax Increment Financing District No. 6 (Housing District)," dated October 26, 2015, and presented for consideration by the City Council (the "Council") of the City of Brooklyn Center, Minnesota(the "City"); and WHEREAS, the Council has investigated the facts relating to the Plans; and WHEREAS, the City has performed all actions required by law to be performed prior to the adoption and approval of the Plans, including but not limited notice to the County Commissioner representing the area of the Count to be included in TIF District No. 6, delivery p g Y of the Plans to the County and School Board, a review of the Plans by the Brooklyn Center Planning Commission, and the holding of a public hearing by the City thereon following notice thereof published in accordance with state law; and WHEREAS, the Council has considered the documentation submitted in support of TIF District No. 6 and the Plans and has taken into account the information and knowledge gained in hearings upon and during consideration of other matters relating to the proposed development; and WHEREAS, The TIF District is being established to facilitate the acquisition, construction and equipping of an approximately 164 unit senior rental housing facility and related amenities (the"Development"); and WHEREAS, the Development will be constructed by SCA Properties, LLC, a Florida limited liability company(or an affiliate to be established, the "Developer"). RESOLUTION NO. 2015-163 NOW, THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the City of Brooklyn Center, Minnesota(the "City"), as follows: Findings for the Adoption and Approval of the Plans. 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 establishment of TIF District No. 6 therein 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. The Council hereby finds that TIF District No. 6 is in the public interest and is a"housing district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portion 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. 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. The Development to be constructed in the TIF District will consist of approximately 164 units of senior rental housing. At least 20% of the units (i.e., 33 units) will be rented to and occupied by individuals or families whose income is not greater than 50% or less of area median income or at least 40% of the units (i.e., 66 units) will be rented to and occupied by individuals or families whose income is not greater than 60% or less of area median income. The Council hereby makes the following additional findings in connection with TIF District No. 6: The Council further finds that the proposed development, in the opinion of the 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 construction of the Development would not be undertaken in the reasonably foreseeable future. The property has remained undeveloped for several years despite previous efforts to redevelop the property. The Developer has represented that it could not proceed with the Development without the tax increment assistance to be provided to the Developer. RESOLUTION NO. 2015-163 The Council further finds that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: The TIF Plan will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The development contemplated on the property is in accordance with the existing zoning for the property. The Planning Commission has reviewed the Redevelopment Plan, and approved the same as being in conformity with the City's comprehensive plan and the general plan for the development and redevelopment of the City as a whole. The Council 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 TIF District No. 6 by private enterprise. The specific basis for such finding being: The proposed development to occur within TIF District No. 6 is primarily low and moderate income senior housing. The development will increase the taxable market valuation of the City, and the available low and moderate income senior housing in the City. The provisions of this Section 1 are hereby incorporated by reference into and made a part of the TIF Plan. The Council further finds that the Plans 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 for TIF District No. 6 and the Redevelopment Plan for the Redevelopment Project. Approval and Adoption of the Plans; Policy on Interf ind Loans and Advances. The Plans, as presented to the Council 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 Finance Director. Approval of the Plans does not constitute approval of any project or a development agreement with any developer. The Business and Development Director is hereby directed to request, in writing, the Hennepin County Auditor to certify the new TIF District No. 6 and to file the Plans with the Commissioner of Revenue and the Office of the State Auditor. The Council hereby approves a policy on interfund loans or advances ("Loans") for TIF District No. 6, as follows: RESOLUTION NO. 2015-163 The authorized tax increment eligible costs (including without limitation out-of- pocket administrative expenses in an amount up to $57,000) payable from the 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. The Loans may be advanced if and as needed from available monies in the City's general fund or other City fund designated by the City Finance Director. Loans may be structured as draw-down or"line of credit" obligations of the lending fund(s). 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 TIF District No. 6. The maximum term of any Loan shall not exceed the lesser of 26 years or such earlier date as the City Finance Director may specify in writing. 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 270.75 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). 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 maintain all necessary or applicable data on the Loans. �! �t/� October 26, 2015 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Lin Myszkowski and upon vote being taken thereon,the following voted in favor thereof: Tim Willson, April Graves, Kris Lawrence-Anderson, Lin Myszkowski, Dan Ryan and the following voted against the same: whereupon said resolution was declared duly passed and adopted.