01-731ORIGINAL
Council File # ���77�
Resolution #
Presented By
Referred To
Committee: Date
RESOLUTION APPROVING THE
2 ESTABLISfIMENT OF A HOUSING AND REDEVELOPMENT PROJECT AND
3 TAX INCREMENT FINANCING DISTRICT (OSCEOLA PARK PROJECT) AND
4 THE ADOPTION OF A REDEVELOPMENT PLAN AND
I�f:�l�[y7�i�►M11�1�7�[y1�Ce7�IC:l�ilY:i�1_3�]�T�7:7
6 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
7 Section 1. Recitals
8 1.01 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
9 "Authority") proposes to establish the Osceola Pazk Housing and Redevelopment Project Area (the 'Project
10 Area") and adopt a redevelopment plan therefar (the "Redevelopment Plan") pursuant to Minnesota Statutes,
11 Sections 469.001 to 469.047, as amended.
12 1.02 The AuthoriTy has asked the City Council to approve the creation of the Project Area and
13 Redevelopment Plan and, within the Project Area, approve the creation of a Tas Increment Financing District
14 as a housing taac increment fmancing district under Minnesota Statutes, Section 469.174, Subdivision 11 (the
15 "T� Increment Financing District"), and the adoprion of a Tax Increment Financing Plan therefor, a11
16 pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469179 (the "Tas Increment
17 Act").
18 1.03 The Authority has performed a11 actions required by law to be performed priar to the creation
19 of the Project Area and the Tas Increment Financing District and adopfion of a Redevelopment Plan and Tax
20 Increment Plan therefor, including, but not limited to, consultation with its plaui�iug commission, notification
21 of the Ramsey County Commissioner representing the azea of the County in which the Tax Increment
22 Financing District is located, and delivering a copy of the Tax Increment Financing Plan to Ramsey County
23 and Independent School District Number 625, which have taxing jurisdicfion over the property to be included
24 in the Tas Increment District. The Authority has requested that the City approve the adoption of the
25 Redevelopment Plan and TaY Increment Financing Plan and the creation of the Project Area and Tax
26 Increment Financing District following the holding of a public hearing upon published and mailed notice as
27 required by law.
ORIGINAL
o�.-�,
28 Section 2. Findings for the Creation of the Project Area and Taa� Increment Financing District (Osceola
29 Park Project) and Adoption of a Redevelopment Plan and Taac Increment Financing Plan therefor.
30 2.01 The City Council hereby finds that the creation of the Project Area and Tax Increment
31 Financing Dishict (Osceola Pazk Project) and adoption of the Redevelopment Plan and Taac Increment Plan
32 therefor, are intended and, in the judgment of the City Council, its effect will be, to carry out the objectives of
33 the Redevelopment Plan and to create an impetus for the construction of low and moderate income housing,
34 and will otherwise promote certain public purposes and accomplish certain objectives as specified in the
35 Redevelopment Plan and Tax Increment Financing Plan.
36 2.02 The City Council hereby fmds, in connection with the Redevelopment Plan that (a) the land in
37 the Redevelopment Project would not be made auailable for redevelopment without the financial aid to be
38 sought, (b) the Redevelopment Plan affords the masimum opportunity, consistent with the needs of the City
39 of Saint Paul as a whole, for the redevelopment of the area by private enterprise, and (c) the Redevelopment
40 Plan conforms to the general plan for the development of the City as a whole.
41 2.03 The City Council hereby fmds that T� Increment Financing District (Osceola Park Project)
42 qualifies as a"housing district" within the meaning of the Tax Increment Act for the following reasons:
43 The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 11, a"housing
44 districP' because it consists of a project or portions of a project or a portion of a project
45 intended for occupancy, in part, by persons or families of low and moderate income as defined
46 in Chapter 462A, TiUe II of the National Housing Act of 1934; the National Housing Act of
47 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of
48 1949, as amended; and any other similar present or future federal, state or municipal
49 legislation or the regulations promulgated under any of those acts. The fair market value of
50 the improvements which are constructed for commercial uses or for uses other than low and
51 moderate income housing will not consist of more than 20 percent of the total fair market
52 value of the planned improvements in the Tax Increment Financing District. The fair market
53 value of the improvements is determined using the cost of construction, capitalized income or
54 other appropriate method of estunating market value.
55 The project to be constructed in the Tax Increment Financing District will consist of
56 approximately 78 owner occupied housing units and the Developer will be required to comply
57 with any all income limits on purchasers nnposed by the TaY Increment Act, as such
58 requirements may be modified by special legislation for the Tax Increment Financing District.
59 It is anticipated that 100% of the planned improvements in the Tax Increment Financing
60 District will be for low and moderate income housing purposes..
61 2.04 The City Council hereby makes the following findings:
62 (a) The City Council further finds that the proposed development, in the opinion of the
63 City Council, wouid not occur solely through private inveshnent within the reasonably foreseeable
64 future and, therefore, the use of t� increment financing is deemed necessary. The specific basis for
65 such finding being:
66 The property on which housing development will occur would not be developed in the
67 reasonably foreseeable future since it is contaminated property. The Developer has
� .
70
71
72
73
74
75
76
77
78
.
:
.
OR4G{�IAL a�-n�
represented that it could not pzoceed with the development without tas increment
assistance.
(b) The City Council fiuther finds that the Ta�c Increment Financing Plan conforms to the
general pian for the development or redevelopment of the City as a whole. The specific basis for such
findmg being:
The Tax Increment Financing Plan will generally complement and serve to implement
policies adopted in the Ciry's comprehensive plan. The housing development
contemplated is in accordance with the existing zoning for the property.
(c) The City Council further finds that the Tax Increment Financing Pian will afford
masimum oppornuiity consistent with the sound needs of the City as a whole for the development of
the Tas Increment District by private enterprise. The specific basis for such finding being:
The proposed development to occur within the TaY Increment District is housing. The
development will increase the tasable market valuation of the City. The available
housing in the downtown azea of the City will expand by more than 78 owner occupied
units with the completion of the development contemplated by this Tax Increment
Financing Plan.
84 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
85 3(2), the City Council hereby finds that the increased market vahie of the property to be developed
86 within the Tax Increment District that could reasonably be expected to occur without the use of tax
87 increment financing is $0, which is less tf�an the market value estimated to result from the proposed
88 development (i.e., $10,971,835) after subtracring the present value of the projected tax increments for
89 the maximum duration of the Tas Increment District (i.e., $2,448,093). In making these findings, the
90 City Council has noted that the property has been undeveloped for many yeazs and would likely
91 remain so af tax increment financing is not available. Thus, the use of tas increment financing will be
92 a positive net gain to the City, the School District, and the County, and the tas increment assistance
93 does not exceed the benefit which will be derived therefrom.
94 2.05 The provisions of this Section 2 are hereby incorporated by reference into and made a part of
95 the Tax Increment Financing Plan.
96 Secfion 3. Creation of the Project Area and Tax Increment Financing District (Osceola Park Project) and
97 the Redevelopment Plan and Tas Increment Financing Plan therefar.
98 3.01 The creafion of the Project Area and Tas Increment Financing District (Osceola Pazk Project)
99 is hereby approved and the Redevelopment P1an and Tas Increment Financing Plan therefor aze hereby
100 adopted.
QR�GI�1�L
�o�
��—���
102 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and
103 legal counsel are authorized and directed to proceed with the implementation of the Project Area and the TaY
104 Increment District and the Redevelopment Plan and Tas Increment Financing Plan and for this purpose to
105 negotiate, draft, prepaze and present to the Boazd of Commissioners of the Authority for its consideration ali
106 fiitther plaus, resolutions, documents and contracts necessary for this purpose.
Requested by Department of:
Plannina & EconomiC Develonment
By:
�le/J�,�,
Fox
Adopted by Council: Date _C�� V p 1
J �
By:
AppYOVed by Mayor for Submission to Council
Adoption Certified by Council Secretary
aY _ �- 1� �1\�,
Approved by Mayor: Date �V �� ����-
BY� ��s� s �� �
/
/ �r�% /
DEPARTMENT/OFFICE/COUNCb: DATE INITIATED GREEN SHEET No.• 39320
PED/WestTeam Sf�518�(.��6 ' �����
CONTACi' PERSON & YHONE: IIVITt.4LmATE RVITTAI✓DATE
Joan Trulsen 66694 � 1 D�eAR�rn��r Dm. s crrr couxcu.
AS5IGN ? CTl'YAITORNEY CITYCLERK
MIJST BE ON COUNCII, AGENDA BY (DATE) NUMBER 3 FAIANCIAL SERV DIlL � I _ FINANCiAL SERV/ACCTG
�I/1S�O1 PUBLIC HEARING F�R 4 Mp'YOR(ORASST.)
ROUTING
oitDElt Retum to Joan Tnilsen, 1100 CHA
TOTAL # OF SIGNATURE PAGES �1_(CLIP AI,L LOCATIONS FOR SIGNA'CURE}
ACiTON REQUESTFD:
City Council to hold a Public Hearing on a resolution approving the establishment of a Housing and
Redevelopment Project and Taz� Increment Financing District (Osceola Park Project) and the adoption of a
Redevelopment Plan and Tas Increment Financing Plan.
RECOMMENDAT[ONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRACTS M[JST ANSWER THE FOLLOWING
QUESTIONS:
A PLANNSNG COMMISSION 1. Aas this personlfinn ever woiked undec a conhact foc this departcnent?
CIB COMMITT'EE d Yes No
CNIL SERVICE COMMISSION 2. Has this person/firm ever been a ciry employee?
Yes d No
3. Does this person/fimi possess a skill not nmmally possessed by any current city employee?
d Yes No
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSOE, OPPORTUNITP(Who, What, When, Where, Why):
On May 9�', 2001, The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota requested the City
Council to hold a Public Hearing and approve the creation of the Osceola Park Project Area and Redevelopment Plan; and,
the creation bf a Taac Increment Financing District as a housing tax increment financing district; and, the ad�q�ki6TE&� Tax
Increment Financing Plan. � �� � ! 4
� � ��47
ADVANTAGES IF APYROVED:
Ta�c Increment Financing will provide funds for the debt service on a note which will help finance the construction of an 78
unit Senior Condominium Project in Dish 9.
DISADVANTAGES IF APPROVED:
None
DLSADVANTAGES IF NOT APPROVED:
The for-sale housing units will not be developed
TOTAL AMOUNI' OF TRANSACTION: $ COST/REVENIJE BUDGETED:
FUNDING SOURCE: ACTIVITY N[TMBER:
FINANCiAL INFORMATION: (EXPI.AIN)
M�\Users\7RULSEMOueola Prq'�gree�sha[ wpd
Page 1 of 1
n�•'1�1
Nancy Anderson - July 11 City Council Meeting
FYom: Jenny Wolfe
To: Anderson, Nancy
Date: 7/3/2001 1:47 PM
Subjeet: July 11 City Council Meeting
CC: McCall, Peter; Trulsen, Joan
Nancy,
I am responding to your voice mail about my request for special action on Green Sheet #39320
regazding establishment of a TIF district, etc. for the Osceola Park Condomuuum Project.
The HI2A has a companion item on their July 11 meeting, whereby they wili need to recess prior to the
City Council Public Hearing later that afternoon to adopt the City Council item with Green Sheet
#39320. Once the Public Hearing is closed and the City Council resolution is adopted, the HRA needs
to reconvene to pass their resolution. Please let me laiow if you need fiuther informarion
Jenny Wolfe, PED
6-6555
file:llC:\WINDOWS\TEMP\GW}00003.HTM 7!3(2001
ORIGINAL
Council File # ���77�
Resolution #
Presented By
Referred To
Committee: Date
RESOLUTION APPROVING THE
2 ESTABLISfIMENT OF A HOUSING AND REDEVELOPMENT PROJECT AND
3 TAX INCREMENT FINANCING DISTRICT (OSCEOLA PARK PROJECT) AND
4 THE ADOPTION OF A REDEVELOPMENT PLAN AND
I�f:�l�[y7�i�►M11�1�7�[y1�Ce7�IC:l�ilY:i�1_3�]�T�7:7
6 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
7 Section 1. Recitals
8 1.01 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
9 "Authority") proposes to establish the Osceola Pazk Housing and Redevelopment Project Area (the 'Project
10 Area") and adopt a redevelopment plan therefar (the "Redevelopment Plan") pursuant to Minnesota Statutes,
11 Sections 469.001 to 469.047, as amended.
12 1.02 The AuthoriTy has asked the City Council to approve the creation of the Project Area and
13 Redevelopment Plan and, within the Project Area, approve the creation of a Tas Increment Financing District
14 as a housing taac increment fmancing district under Minnesota Statutes, Section 469.174, Subdivision 11 (the
15 "T� Increment Financing District"), and the adoprion of a Tax Increment Financing Plan therefor, a11
16 pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469179 (the "Tas Increment
17 Act").
18 1.03 The Authority has performed a11 actions required by law to be performed priar to the creation
19 of the Project Area and the Tas Increment Financing District and adopfion of a Redevelopment Plan and Tax
20 Increment Plan therefor, including, but not limited to, consultation with its plaui�iug commission, notification
21 of the Ramsey County Commissioner representing the azea of the County in which the Tax Increment
22 Financing District is located, and delivering a copy of the Tax Increment Financing Plan to Ramsey County
23 and Independent School District Number 625, which have taxing jurisdicfion over the property to be included
24 in the Tas Increment District. The Authority has requested that the City approve the adoption of the
25 Redevelopment Plan and TaY Increment Financing Plan and the creation of the Project Area and Tax
26 Increment Financing District following the holding of a public hearing upon published and mailed notice as
27 required by law.
ORIGINAL
o�.-�,
28 Section 2. Findings for the Creation of the Project Area and Taa� Increment Financing District (Osceola
29 Park Project) and Adoption of a Redevelopment Plan and Taac Increment Financing Plan therefor.
30 2.01 The City Council hereby finds that the creation of the Project Area and Tax Increment
31 Financing Dishict (Osceola Pazk Project) and adoption of the Redevelopment Plan and Taac Increment Plan
32 therefor, are intended and, in the judgment of the City Council, its effect will be, to carry out the objectives of
33 the Redevelopment Plan and to create an impetus for the construction of low and moderate income housing,
34 and will otherwise promote certain public purposes and accomplish certain objectives as specified in the
35 Redevelopment Plan and Tax Increment Financing Plan.
36 2.02 The City Council hereby fmds, in connection with the Redevelopment Plan that (a) the land in
37 the Redevelopment Project would not be made auailable for redevelopment without the financial aid to be
38 sought, (b) the Redevelopment Plan affords the masimum opportunity, consistent with the needs of the City
39 of Saint Paul as a whole, for the redevelopment of the area by private enterprise, and (c) the Redevelopment
40 Plan conforms to the general plan for the development of the City as a whole.
41 2.03 The City Council hereby fmds that T� Increment Financing District (Osceola Park Project)
42 qualifies as a"housing district" within the meaning of the Tax Increment Act for the following reasons:
43 The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 11, a"housing
44 districP' because it consists of a project or portions of a project or a portion of a project
45 intended for occupancy, in part, by persons or families of low and moderate income as defined
46 in Chapter 462A, TiUe II of the National Housing Act of 1934; the National Housing Act of
47 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of
48 1949, as amended; and any other similar present or future federal, state or municipal
49 legislation or the regulations promulgated under any of those acts. The fair market value of
50 the improvements which are constructed for commercial uses or for uses other than low and
51 moderate income housing will not consist of more than 20 percent of the total fair market
52 value of the planned improvements in the Tax Increment Financing District. The fair market
53 value of the improvements is determined using the cost of construction, capitalized income or
54 other appropriate method of estunating market value.
55 The project to be constructed in the Tax Increment Financing District will consist of
56 approximately 78 owner occupied housing units and the Developer will be required to comply
57 with any all income limits on purchasers nnposed by the TaY Increment Act, as such
58 requirements may be modified by special legislation for the Tax Increment Financing District.
59 It is anticipated that 100% of the planned improvements in the Tax Increment Financing
60 District will be for low and moderate income housing purposes..
61 2.04 The City Council hereby makes the following findings:
62 (a) The City Council further finds that the proposed development, in the opinion of the
63 City Council, wouid not occur solely through private inveshnent within the reasonably foreseeable
64 future and, therefore, the use of t� increment financing is deemed necessary. The specific basis for
65 such finding being:
66 The property on which housing development will occur would not be developed in the
67 reasonably foreseeable future since it is contaminated property. The Developer has
� .
70
71
72
73
74
75
76
77
78
.
:
.
OR4G{�IAL a�-n�
represented that it could not pzoceed with the development without tas increment
assistance.
(b) The City Council fiuther finds that the Ta�c Increment Financing Plan conforms to the
general pian for the development or redevelopment of the City as a whole. The specific basis for such
findmg being:
The Tax Increment Financing Plan will generally complement and serve to implement
policies adopted in the Ciry's comprehensive plan. The housing development
contemplated is in accordance with the existing zoning for the property.
(c) The City Council further finds that the Tax Increment Financing Pian will afford
masimum oppornuiity consistent with the sound needs of the City as a whole for the development of
the Tas Increment District by private enterprise. The specific basis for such finding being:
The proposed development to occur within the TaY Increment District is housing. The
development will increase the tasable market valuation of the City. The available
housing in the downtown azea of the City will expand by more than 78 owner occupied
units with the completion of the development contemplated by this Tax Increment
Financing Plan.
84 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
85 3(2), the City Council hereby finds that the increased market vahie of the property to be developed
86 within the Tax Increment District that could reasonably be expected to occur without the use of tax
87 increment financing is $0, which is less tf�an the market value estimated to result from the proposed
88 development (i.e., $10,971,835) after subtracring the present value of the projected tax increments for
89 the maximum duration of the Tas Increment District (i.e., $2,448,093). In making these findings, the
90 City Council has noted that the property has been undeveloped for many yeazs and would likely
91 remain so af tax increment financing is not available. Thus, the use of tas increment financing will be
92 a positive net gain to the City, the School District, and the County, and the tas increment assistance
93 does not exceed the benefit which will be derived therefrom.
94 2.05 The provisions of this Section 2 are hereby incorporated by reference into and made a part of
95 the Tax Increment Financing Plan.
96 Secfion 3. Creation of the Project Area and Tax Increment Financing District (Osceola Park Project) and
97 the Redevelopment Plan and Tas Increment Financing Plan therefar.
98 3.01 The creafion of the Project Area and Tas Increment Financing District (Osceola Pazk Project)
99 is hereby approved and the Redevelopment P1an and Tas Increment Financing Plan therefor aze hereby
100 adopted.
QR�GI�1�L
�o�
��—���
102 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and
103 legal counsel are authorized and directed to proceed with the implementation of the Project Area and the TaY
104 Increment District and the Redevelopment Plan and Tas Increment Financing Plan and for this purpose to
105 negotiate, draft, prepaze and present to the Boazd of Commissioners of the Authority for its consideration ali
106 fiitther plaus, resolutions, documents and contracts necessary for this purpose.
Requested by Department of:
Plannina & EconomiC Develonment
By:
�le/J�,�,
Fox
Adopted by Council: Date _C�� V p 1
J �
By:
AppYOVed by Mayor for Submission to Council
Adoption Certified by Council Secretary
aY _ �- 1� �1\�,
Approved by Mayor: Date �V �� ����-
BY� ��s� s �� �
/
/ �r�% /
DEPARTMENT/OFFICE/COUNCb: DATE INITIATED GREEN SHEET No.• 39320
PED/WestTeam Sf�518�(.��6 ' �����
CONTACi' PERSON & YHONE: IIVITt.4LmATE RVITTAI✓DATE
Joan Trulsen 66694 � 1 D�eAR�rn��r Dm. s crrr couxcu.
AS5IGN ? CTl'YAITORNEY CITYCLERK
MIJST BE ON COUNCII, AGENDA BY (DATE) NUMBER 3 FAIANCIAL SERV DIlL � I _ FINANCiAL SERV/ACCTG
�I/1S�O1 PUBLIC HEARING F�R 4 Mp'YOR(ORASST.)
ROUTING
oitDElt Retum to Joan Tnilsen, 1100 CHA
TOTAL # OF SIGNATURE PAGES �1_(CLIP AI,L LOCATIONS FOR SIGNA'CURE}
ACiTON REQUESTFD:
City Council to hold a Public Hearing on a resolution approving the establishment of a Housing and
Redevelopment Project and Taz� Increment Financing District (Osceola Park Project) and the adoption of a
Redevelopment Plan and Tas Increment Financing Plan.
RECOMMENDAT[ONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRACTS M[JST ANSWER THE FOLLOWING
QUESTIONS:
A PLANNSNG COMMISSION 1. Aas this personlfinn ever woiked undec a conhact foc this departcnent?
CIB COMMITT'EE d Yes No
CNIL SERVICE COMMISSION 2. Has this person/firm ever been a ciry employee?
Yes d No
3. Does this person/fimi possess a skill not nmmally possessed by any current city employee?
d Yes No
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSOE, OPPORTUNITP(Who, What, When, Where, Why):
On May 9�', 2001, The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota requested the City
Council to hold a Public Hearing and approve the creation of the Osceola Park Project Area and Redevelopment Plan; and,
the creation bf a Taac Increment Financing District as a housing tax increment financing district; and, the ad�q�ki6TE&� Tax
Increment Financing Plan. � �� � ! 4
� � ��47
ADVANTAGES IF APYROVED:
Ta�c Increment Financing will provide funds for the debt service on a note which will help finance the construction of an 78
unit Senior Condominium Project in Dish 9.
DISADVANTAGES IF APPROVED:
None
DLSADVANTAGES IF NOT APPROVED:
The for-sale housing units will not be developed
TOTAL AMOUNI' OF TRANSACTION: $ COST/REVENIJE BUDGETED:
FUNDING SOURCE: ACTIVITY N[TMBER:
FINANCiAL INFORMATION: (EXPI.AIN)
M�\Users\7RULSEMOueola Prq'�gree�sha[ wpd
Page 1 of 1
n�•'1�1
Nancy Anderson - July 11 City Council Meeting
FYom: Jenny Wolfe
To: Anderson, Nancy
Date: 7/3/2001 1:47 PM
Subjeet: July 11 City Council Meeting
CC: McCall, Peter; Trulsen, Joan
Nancy,
I am responding to your voice mail about my request for special action on Green Sheet #39320
regazding establishment of a TIF district, etc. for the Osceola Park Condomuuum Project.
The HI2A has a companion item on their July 11 meeting, whereby they wili need to recess prior to the
City Council Public Hearing later that afternoon to adopt the City Council item with Green Sheet
#39320. Once the Public Hearing is closed and the City Council resolution is adopted, the HRA needs
to reconvene to pass their resolution. Please let me laiow if you need fiuther informarion
Jenny Wolfe, PED
6-6555
file:llC:\WINDOWS\TEMP\GW}00003.HTM 7!3(2001
ORIGINAL
Council File # ���77�
Resolution #
Presented By
Referred To
Committee: Date
RESOLUTION APPROVING THE
2 ESTABLISfIMENT OF A HOUSING AND REDEVELOPMENT PROJECT AND
3 TAX INCREMENT FINANCING DISTRICT (OSCEOLA PARK PROJECT) AND
4 THE ADOPTION OF A REDEVELOPMENT PLAN AND
I�f:�l�[y7�i�►M11�1�7�[y1�Ce7�IC:l�ilY:i�1_3�]�T�7:7
6 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
7 Section 1. Recitals
8 1.01 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
9 "Authority") proposes to establish the Osceola Pazk Housing and Redevelopment Project Area (the 'Project
10 Area") and adopt a redevelopment plan therefar (the "Redevelopment Plan") pursuant to Minnesota Statutes,
11 Sections 469.001 to 469.047, as amended.
12 1.02 The AuthoriTy has asked the City Council to approve the creation of the Project Area and
13 Redevelopment Plan and, within the Project Area, approve the creation of a Tas Increment Financing District
14 as a housing taac increment fmancing district under Minnesota Statutes, Section 469.174, Subdivision 11 (the
15 "T� Increment Financing District"), and the adoprion of a Tax Increment Financing Plan therefor, a11
16 pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469179 (the "Tas Increment
17 Act").
18 1.03 The Authority has performed a11 actions required by law to be performed priar to the creation
19 of the Project Area and the Tas Increment Financing District and adopfion of a Redevelopment Plan and Tax
20 Increment Plan therefor, including, but not limited to, consultation with its plaui�iug commission, notification
21 of the Ramsey County Commissioner representing the azea of the County in which the Tax Increment
22 Financing District is located, and delivering a copy of the Tax Increment Financing Plan to Ramsey County
23 and Independent School District Number 625, which have taxing jurisdicfion over the property to be included
24 in the Tas Increment District. The Authority has requested that the City approve the adoption of the
25 Redevelopment Plan and TaY Increment Financing Plan and the creation of the Project Area and Tax
26 Increment Financing District following the holding of a public hearing upon published and mailed notice as
27 required by law.
ORIGINAL
o�.-�,
28 Section 2. Findings for the Creation of the Project Area and Taa� Increment Financing District (Osceola
29 Park Project) and Adoption of a Redevelopment Plan and Taac Increment Financing Plan therefor.
30 2.01 The City Council hereby finds that the creation of the Project Area and Tax Increment
31 Financing Dishict (Osceola Pazk Project) and adoption of the Redevelopment Plan and Taac Increment Plan
32 therefor, are intended and, in the judgment of the City Council, its effect will be, to carry out the objectives of
33 the Redevelopment Plan and to create an impetus for the construction of low and moderate income housing,
34 and will otherwise promote certain public purposes and accomplish certain objectives as specified in the
35 Redevelopment Plan and Tax Increment Financing Plan.
36 2.02 The City Council hereby fmds, in connection with the Redevelopment Plan that (a) the land in
37 the Redevelopment Project would not be made auailable for redevelopment without the financial aid to be
38 sought, (b) the Redevelopment Plan affords the masimum opportunity, consistent with the needs of the City
39 of Saint Paul as a whole, for the redevelopment of the area by private enterprise, and (c) the Redevelopment
40 Plan conforms to the general plan for the development of the City as a whole.
41 2.03 The City Council hereby fmds that T� Increment Financing District (Osceola Park Project)
42 qualifies as a"housing district" within the meaning of the Tax Increment Act for the following reasons:
43 The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 11, a"housing
44 districP' because it consists of a project or portions of a project or a portion of a project
45 intended for occupancy, in part, by persons or families of low and moderate income as defined
46 in Chapter 462A, TiUe II of the National Housing Act of 1934; the National Housing Act of
47 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of
48 1949, as amended; and any other similar present or future federal, state or municipal
49 legislation or the regulations promulgated under any of those acts. The fair market value of
50 the improvements which are constructed for commercial uses or for uses other than low and
51 moderate income housing will not consist of more than 20 percent of the total fair market
52 value of the planned improvements in the Tax Increment Financing District. The fair market
53 value of the improvements is determined using the cost of construction, capitalized income or
54 other appropriate method of estunating market value.
55 The project to be constructed in the Tax Increment Financing District will consist of
56 approximately 78 owner occupied housing units and the Developer will be required to comply
57 with any all income limits on purchasers nnposed by the TaY Increment Act, as such
58 requirements may be modified by special legislation for the Tax Increment Financing District.
59 It is anticipated that 100% of the planned improvements in the Tax Increment Financing
60 District will be for low and moderate income housing purposes..
61 2.04 The City Council hereby makes the following findings:
62 (a) The City Council further finds that the proposed development, in the opinion of the
63 City Council, wouid not occur solely through private inveshnent within the reasonably foreseeable
64 future and, therefore, the use of t� increment financing is deemed necessary. The specific basis for
65 such finding being:
66 The property on which housing development will occur would not be developed in the
67 reasonably foreseeable future since it is contaminated property. The Developer has
� .
70
71
72
73
74
75
76
77
78
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OR4G{�IAL a�-n�
represented that it could not pzoceed with the development without tas increment
assistance.
(b) The City Council fiuther finds that the Ta�c Increment Financing Plan conforms to the
general pian for the development or redevelopment of the City as a whole. The specific basis for such
findmg being:
The Tax Increment Financing Plan will generally complement and serve to implement
policies adopted in the Ciry's comprehensive plan. The housing development
contemplated is in accordance with the existing zoning for the property.
(c) The City Council further finds that the Tax Increment Financing Pian will afford
masimum oppornuiity consistent with the sound needs of the City as a whole for the development of
the Tas Increment District by private enterprise. The specific basis for such finding being:
The proposed development to occur within the TaY Increment District is housing. The
development will increase the tasable market valuation of the City. The available
housing in the downtown azea of the City will expand by more than 78 owner occupied
units with the completion of the development contemplated by this Tax Increment
Financing Plan.
84 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
85 3(2), the City Council hereby finds that the increased market vahie of the property to be developed
86 within the Tax Increment District that could reasonably be expected to occur without the use of tax
87 increment financing is $0, which is less tf�an the market value estimated to result from the proposed
88 development (i.e., $10,971,835) after subtracring the present value of the projected tax increments for
89 the maximum duration of the Tas Increment District (i.e., $2,448,093). In making these findings, the
90 City Council has noted that the property has been undeveloped for many yeazs and would likely
91 remain so af tax increment financing is not available. Thus, the use of tas increment financing will be
92 a positive net gain to the City, the School District, and the County, and the tas increment assistance
93 does not exceed the benefit which will be derived therefrom.
94 2.05 The provisions of this Section 2 are hereby incorporated by reference into and made a part of
95 the Tax Increment Financing Plan.
96 Secfion 3. Creation of the Project Area and Tax Increment Financing District (Osceola Park Project) and
97 the Redevelopment Plan and Tas Increment Financing Plan therefar.
98 3.01 The creafion of the Project Area and Tas Increment Financing District (Osceola Pazk Project)
99 is hereby approved and the Redevelopment P1an and Tas Increment Financing Plan therefor aze hereby
100 adopted.
QR�GI�1�L
�o�
��—���
102 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and
103 legal counsel are authorized and directed to proceed with the implementation of the Project Area and the TaY
104 Increment District and the Redevelopment Plan and Tas Increment Financing Plan and for this purpose to
105 negotiate, draft, prepaze and present to the Boazd of Commissioners of the Authority for its consideration ali
106 fiitther plaus, resolutions, documents and contracts necessary for this purpose.
Requested by Department of:
Plannina & EconomiC Develonment
By:
�le/J�,�,
Fox
Adopted by Council: Date _C�� V p 1
J �
By:
AppYOVed by Mayor for Submission to Council
Adoption Certified by Council Secretary
aY _ �- 1� �1\�,
Approved by Mayor: Date �V �� ����-
BY� ��s� s �� �
/
/ �r�% /
DEPARTMENT/OFFICE/COUNCb: DATE INITIATED GREEN SHEET No.• 39320
PED/WestTeam Sf�518�(.��6 ' �����
CONTACi' PERSON & YHONE: IIVITt.4LmATE RVITTAI✓DATE
Joan Trulsen 66694 � 1 D�eAR�rn��r Dm. s crrr couxcu.
AS5IGN ? CTl'YAITORNEY CITYCLERK
MIJST BE ON COUNCII, AGENDA BY (DATE) NUMBER 3 FAIANCIAL SERV DIlL � I _ FINANCiAL SERV/ACCTG
�I/1S�O1 PUBLIC HEARING F�R 4 Mp'YOR(ORASST.)
ROUTING
oitDElt Retum to Joan Tnilsen, 1100 CHA
TOTAL # OF SIGNATURE PAGES �1_(CLIP AI,L LOCATIONS FOR SIGNA'CURE}
ACiTON REQUESTFD:
City Council to hold a Public Hearing on a resolution approving the establishment of a Housing and
Redevelopment Project and Taz� Increment Financing District (Osceola Park Project) and the adoption of a
Redevelopment Plan and Tas Increment Financing Plan.
RECOMMENDAT[ONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRACTS M[JST ANSWER THE FOLLOWING
QUESTIONS:
A PLANNSNG COMMISSION 1. Aas this personlfinn ever woiked undec a conhact foc this departcnent?
CIB COMMITT'EE d Yes No
CNIL SERVICE COMMISSION 2. Has this person/firm ever been a ciry employee?
Yes d No
3. Does this person/fimi possess a skill not nmmally possessed by any current city employee?
d Yes No
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSOE, OPPORTUNITP(Who, What, When, Where, Why):
On May 9�', 2001, The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota requested the City
Council to hold a Public Hearing and approve the creation of the Osceola Park Project Area and Redevelopment Plan; and,
the creation bf a Taac Increment Financing District as a housing tax increment financing district; and, the ad�q�ki6TE&� Tax
Increment Financing Plan. � �� � ! 4
� � ��47
ADVANTAGES IF APYROVED:
Ta�c Increment Financing will provide funds for the debt service on a note which will help finance the construction of an 78
unit Senior Condominium Project in Dish 9.
DISADVANTAGES IF APPROVED:
None
DLSADVANTAGES IF NOT APPROVED:
The for-sale housing units will not be developed
TOTAL AMOUNI' OF TRANSACTION: $ COST/REVENIJE BUDGETED:
FUNDING SOURCE: ACTIVITY N[TMBER:
FINANCiAL INFORMATION: (EXPI.AIN)
M�\Users\7RULSEMOueola Prq'�gree�sha[ wpd
Page 1 of 1
n�•'1�1
Nancy Anderson - July 11 City Council Meeting
FYom: Jenny Wolfe
To: Anderson, Nancy
Date: 7/3/2001 1:47 PM
Subjeet: July 11 City Council Meeting
CC: McCall, Peter; Trulsen, Joan
Nancy,
I am responding to your voice mail about my request for special action on Green Sheet #39320
regazding establishment of a TIF district, etc. for the Osceola Park Condomuuum Project.
The HI2A has a companion item on their July 11 meeting, whereby they wili need to recess prior to the
City Council Public Hearing later that afternoon to adopt the City Council item with Green Sheet
#39320. Once the Public Hearing is closed and the City Council resolution is adopted, the HRA needs
to reconvene to pass their resolution. Please let me laiow if you need fiuther informarion
Jenny Wolfe, PED
6-6555
file:llC:\WINDOWS\TEMP\GW}00003.HTM 7!3(2001