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273960 N�HITE - CITV CLERK BLUE - MAVOR E �ITY OF SAINT PAIIL Councii ��3960 CANARV - DEPARTMEN T ����y/�i File N 0. ouncil Resolution Presented By Referred To Committee: Date Out of Committee By Date RESOLUTION APPROVING AMENDATORY AGREEMENT FIXING SUM TO BE PAID BY HRA IN LIEU OF TAXES ON REDEVELOPMENT PROPERTY RESOLVED upon request of the HRA, Resolution No. 79-10/10-4 , adopted October 10, 1979 , and the recommendation of the Ma.yor, the Amendatory Agreement amending the Agreement On Payment In Lieu Of Taxes On Exempt Redevelopment Property dated December 27, 1973 between the City and HRA fixing the sum to be paid in lieu of taxes at one percent (1�) of rentals received, is hereby approved on behalf of the City for execution on its behalf by the proper City officers. COUNC[LMEN Requested by Department of: Yeas � Nays Plannin an Economic Develo ment , Hunt In Favor Levine � � �`°-�� _ __ Against BY � Showalter Adopted bT�ouncil: Date n�T '� �0 979 Form Approved by City Attorney Certified P� - y Counci cret BY � � ° B5' - � �_2 �9`�9 Approve Mayor for Submission to Council t�l d by A7avor: D �� n •� BY — gY � �y'�'������� PuauS��o N OV 1 0 1979 AMENDATORY AGREEMENT ������ AGREEMENT ON PAYMENT IN LIEU OF TAXES ON LEASED EXEMPT REDEVELOPMENT PROPERTY � THIS AMENLIATORY AGREEMENT entered into this day of , 19 , by and between the CITY OF SAINT PAUL, a municipality organized and existing under the laws of the State of Minnesota (City) and the IiOUSING AND REDEVELOPMENT AUTfiORITY OF TIiE CITY OF SAINT PAUL, MINNESOTA, an authority organized and existing under the laws of the State of Minnesota (HRA) . WITNESSETH: • WHEREAS, pursuant to provision of Minnesota Statutes, Section 272. 68, Subdivision 4, the parties entered into an Agreement On Payment In Lieu Of Taxes On Leased Exempt Redevelopment Property dated December 27, 1973; and WHEREAS, said Agreement fixed a percentage of rents as the certain sum to be paid in lieu of taxes (PILOT) on property .owned by the HRA for redevelo ment ' p purposes and leased to former occupants based on the 8RA's obligation to assist in their relocation, the existence of Federal financial assistance of at least two-thirds ' of proj ect costs; and WHEREAS, the costs of property management and maintenance �xceeded tiie total of gross rents received by the HRA in the first six months of 1979 , which costs and the PILOT payments are fully borne by the HRA since the discontinuance of categorical Federal financial aid to redevelopment projects; and WFiEREAS, the ability of the HRA to fix or increase rents reserved, being the fair and marketable rental value of the property after the public acquisition which by reason of the certainty that «.�,��:�- .�, . . 2. '� ; '��.z"�'�r� the lessee' s possession will be for a limited time , changes in the redevelopment area within which the property is located and other factors negatively affecting its rental value, is limited by the fact that the fair and reasonable rental value of the use of such property is substantially less after the HRA's acquisition than before; and WiiEREAS, in view of the increasing costs of property mainte- nance and management, the loss of Federal financial aid in meeting triese costs, the legal and practical constraints upon increasing rentals , and the continuing legal obligation of the HRA, notwith- standing these circumstances, under provision of Minnesota Statutes, Section 462.531, and the Federal Uniform Relocation Assistance Act, 84 Stat. 1894, to provide temporary relocation of families and nusinesses to be displaced by such property acquisition, it appears ne cessary that the HRA agree with the City to the payment of a lesser certain sum as a PILOT payment. , i�IOW THEREFORE, IT IS HEREBY MUTUALLY AGREED by the parties effective upon the date of this Amendatory Agreement that the . provision of Section I, of their Agreement On Payment In Lieu Of Taxes On Leased Exempt Redevelopment Property dated December 27, 1973, is hereby amended to provide that the sum payable to the Ramsey County Tax Department in lieu of taxes shall be one percent (1$) of the rental received. . . , p��r�y�''�� 3. IN WITNESS WHEREOF, the parties have caused this Amendatory Agreement to be executed as of the date first above written. CITY OF SAINT PAUL APP.ROVED AS TO FORM � By Mayor Assistant City Attorney By Director, Department o Planning and Economic Development By • Director, Department o inance and Management Services HOUSING AND REDEVELOPMENT AUTHORITY � OF THE CITY OF SAINT PAUL, MIYNESOTA �� � By , Executive Director BY . Assistant ecretary RESOLIITION N0. 79=10/10-4 -�������'� � RESOLUTION REQUESTING AMENDMENT OF AGREEMENT ON - PAYMEiJT IN LIEU OF TAXES (PILOT) ON LEASED EXEMPT REDEVELOPMENT PROPERTY kc:::i::•. WHEREAS , pursuant to authorization of Minn. Stat. Section 272. 68, Subdivision 4, the City of Saint Paul and HRA entered into an Agreement dated December 27 , 1973 , fixing PILOT payments by HRA at 20� of rentals received from lease of property acquired for redevelopment purposes , unless amended by future agreement between the parties; and WHEREAS, the HRA Board is in receipt of a report which discloses that the PILOT percentage was agreed upon at a time when property manage- ment and maintenance costs were shared on a three-fourths Federal , one-fourth local (Project Minn. R-20) , or a two-thirds Federal, one-third local (all othe r categorical grant projects) , which Federal paxticipation is no longer available; and WHEREAS, said staff report further discloses that the increasing costs of property management and maintenance, borne 100� by HRA, for the period January 1, 1979 through June 30 , 1979 , exceeded gros� rents received before taxes , and that the ability to fix rentals is limited by legal, practical and policy considerations; and WHEREAS, these changed circumstances support the staff recommenda- tion that negotiations be entered into with the City of Saint Paul � for amendment of the PILOT Agreement reducing and fixing the sum, if any, �:::::, to be paid in lieu of taxes at an amount reflecting such changed ���=� circumstances. 110W THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that the staff is hereby authorized and directed to open discussions with the City of Saint Paul looking toward amendment of the Agreement On Payment In Lieu Of Taxes On Leased Exempt.Redevelopment Property, reducing or eliminating such payments in accordance with the terms of the Agreement and the authority of Minn. Stat. Section 272. 68 , Subdivision 4. �:::��`:: �:-:�_`: �:::::_:.