HomeMy WebLinkAbout2016-005 EDARCommissioner Dan Ryan introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO. 2016-05
RESOLUTION APPROVING AN ADMINISTRATIVE AMENDMENT TO
BUDGET FOR TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 4 IN CONNECTION WITH
POOLING FOR AFFORDABLE HOUSING
WHEREAS, the Economic Development Authority of Brooklyn Center,
Minnesota ("EDA") has previously established Housing Development and Redevelopment
Project No. 1 (the "Project Area") and adopted a Redevelopment Plan therefor, as amended (the
"Redevelopment Plan"). The EDA has also established Tax Increment Financing (Soils
Condition) District No. 4 (the "TIF District") within the Project Area, and adopted a Tax
Increment Financing Plan therefor (the "TIF Plan"); and
WHEREAS, in connection with making an election to authorize certain
expenditures for affordable housing pursuant to Minnesota Statutes 469.1763, Subdivision 2(d),
the EDA desires to amend the TIF Plan as set forth in Exhibit A to provide for administrative
changes to the budget set forth therein (the "Amendment"); and
WHEREAS, the Amendment does not increase the total estimate tax increment
expenditures, the amount of bonded indebtedness, capitalized interest, or make any other
changes described in Minnesota Statutes, Section 469.175, subd. 4, that would require a new
public hearing.
NOW, THEREFORE, BE IT RESOLVED By the Board of Commissioners (the
"Board") of the Economic Development Authority of Brooklyn Center, Minnesota as follows:
1. Findings for the Adoption of the TIF Plan Amendment. The Board finds
that the TIF Plan Amendment is intended and, in the judgment of the Board, the
effect will be, to carry out the objectives of the redevelopment plan therefor (the
"Redevelopment Plan"), to create an impetus for redevelopment activities
associated with better utilizing blighted, polluted and underutilized land and
enhancing the tax base 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, to create an
impetus for the construction of decent, safe and sanitary housing for persons of
low and moderate income and to otherwise promote certain public purposes and
accomplish certain objectives as specified in the Redevelopment Plan, as
modified, and in the TIF Plan Amendment.
The Board hereby ratifies and confirms the findings made in connection with the
establishment of the TIF District.
EDA RESOLUTION NO. 2016-0
2.Election to Authorize Certain Expenditures for Affordable Housing. In
accordance with Minnesota Statutes 469.1763, Subdivision 2(d) the Board may
elect to increase by up to 10%, the permitted amount of expenditures for activities
located outside the geographic area of the district, provided that the expenditures
(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue
Code; (2) not exceed the qualified basis of the housing, as defined under section
42(c) of the Internal Revenue Code, less the amount of any credit allowed under
section 42 of the Internal Revenue Code; and (3) be used to: (i) acquire and
prepare the site of the housing; (ii) acquire, construct, or rehabilitate the housing;
or (iii) make public improvements directly related to the housing. The Board
hereby elects to authorize utilizing up to 30% of the tax increment from the TIF
District, less any amount utilized for administrative expenses, for such housing
expenditures as set forth in the TIF Plan Amendment.
3.Approval of the TIF Plan Amendment. The TIF Plan Amendment as set
forth in Exhibit A is hereby approved. The staff of the EDA and the EDA's
advisors and legal counsel are authorized and directed to proceed with the
implementation of the TIF Plan Amendment. The staff of the EDA is hereby
directed to file a copy of the TIF Plan Amendment with the County Auditor of
Hennepin County, the Office of the State Auditor and the Commissioner of
Revenue.
)
February 8, 2016
Date President
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
April Graves
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.
EDA RESOLUTION NO. 2016-05
EXHBIT A
Original Budge NewBudget
Soils/Environmental $3,207,950.00 Site improvements &$2,424,199.00
preparation
Geotechnical 1,000,000.00 Pooling for 1,863,373.00
Affordable Housing
Infrastructure 770,000.00 Administrative 120,000.00
Expenses
Acquisition 4,540,000.00
Demolition 140,000.00
Contingency 466,902.00
Groundwater Pumping 3,450,000.00 Interest 2,145,000.00
and Monitoring
Total $13,574,852.00 Total $6,552,572.00
TIF Revenues TIF Revenues $6,552,572.00