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HomeMy WebLinkAbout2015-024 EDAR Commissioner Dan Ryan introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2015-24 RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 6 THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR 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 within the Redevelopment Project and adopt the 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 the Board's consideration; and WHEREAS,the Board has investigated the facts relating to the Plans; and WHEREAS, the EDA 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 County to be included in TIF District No. 6, delivery of the Plans to the County and School Board and a review of the Plans by the Brooklyn Center Planning Commission; provided that that City Council will hold a public hearing thereon on the date hereof following notice thereof published in accordance with state law; 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 owned by SCA Properties, LLC, a Florida limited liability company (or an affiliate to be established, the"Developer"). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA"), as follows: EDA RESOLUTION NO. 2015-24 Section 1. Findings for the Adoption and Approval of the Plans. 1.01. The Board hereby 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 Board 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. 1.02. The Board 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. 1.03. The Board of Commissioners hereby makes the following additional findings in connection with TIF District No. 6: (a) The Board of Commissioners further finds that the proposed development, in the opinion of the Board of Commissioners, 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. (b) The Board of Commissioners further finds that the TIF Plan conforms to the general plan for the development or redevelopment of the EDA 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. EDA RESOLUTION NO. 2015-24 (c) The Board of Commissioners further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the EDA 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 a 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 facilities in the City. 1.04. The provisions of this Section 1 are hereby incorporated by reference into and made a part of the TIF Plan. 1.05. The Board further finds that the Plans are intended and in the judgment of the Board 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 Proj ect. Section 2. Approval and Adoption of the Plans; Policy on Interfund Loans and Advances. 2.01. 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 City Finance Director. Approval of the Plans does not constitute approval of any project or a development agreement with any developer. Subject to approval by the City Council following a public hearing, 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. 2.02. The Board hereby approves roves a policy on interfand loans or advances ("Loans") for TIF District No. 6, as follows: (a) 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. (b) The Loans may be advanced if and as needed from available monies in any fund or account of the EDA 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 the adopted and, if applicable, amended TIF Plan budget for TIF District No. 6. EDA RESOLUTION NO. 2015-24 (d) The maximum term of any Loan shall not exceed 26 years or such earlier date as the City Finance Director may specify in writing. (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 270.75 or 549.09 at the time a Loan, or any part of it, is first made, subject to the right of the EDA Finance Director to specify a lower rate (but not less than the EDA'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. October 26, 2015 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner 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.