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02-574�i���11�1�L Presented By Referred To Council File # �e1� 5�� Resolution # Green Sheet # � l'� � g g g RESOLUTION CITY OF SAINT PAUL, MINNESOTA 1�` Committee: Date RESOLUTION APPROVING THE 3 AMENDMENT OF THE TAX INCREMENT FINANCING PLAN 4 FOR THE OSCEOLA PARK TAX INCREMENT FINANCING DISTRICT 6 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") 7 as follows: 8 Section 1. Recitals 9 1.01. On July 11, 2001, the Housing and Redevelopment Authority of the City of Saint 10 Paul, Minnesota (the "Authority") established the Osceola Pazk Housing and Redevelopment 11 Project Area (the "Redevelopment Project Area") and adopted a redevelopment plan therefor (the 12 "Redevelopment Plan"). 13 1.02. On July 11, 2001, the City Council approved the creation, within the 14 Redevelopment Project Area, of the Osceola Park Tax Increment Financing District (the "Tax 15 Increment DistricY') and the adoption of a Tax Increment Financing Plan therefor (the "Taac 16 Increment Plan"), all pursuant to and in accordance with Minnesota Statutes, Section 469.174 17 through 469.179 (the "Tax Increment Act"). 18 1.03. The Authority has determined that it is necessary to amend the Tax Increment 19 Plan to reflect that the development has been revised from an owner occupied housing 20 development to a low and moderate income rental housing development (the "Amended Plan"). 21 The Authority has performed all actions required by law to be perforxned prior to the amendment 22 of the Tax Increment Plan, including, but not limited to, notification of Ramsey County and 23 Independent School District Number 625, which have taxing jurisdiction over the property 24 included in the TaY Increment District, and has requested that the City approve the Amended 25 Plan following the holding of a public hearing upon published and mailed notice as required by 26 law. 27 Section 2. Findings for the Amendment of the Tas Increment Financing Plan. 28 2.01. The City Council hereby finds that the Tax Increment Plan for the Osceola Park 29 Tax Increment Financing District as amended on June 26, 2002 (the "Amended Plan") is ORiGINAL o�--s�y, 1 intended and, in the judgment of the City Council, its effect will be, to carry out the objectives of 2 the Redevelopment Plan and to create an impetus for the construction in the City of affordable 3 and mixed income housing, will increase employment and otherwise promote certain public 4 purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tas 5 Increment Financing Plan, as amended. 6 2.02. The City Council hereby reaffirms its previous findings that the Osceola Pazk TaY 7 Increment Financing District dated June 26, 2002, qualifies as an "housing district" within the 8 meaning of the Taa� Increment Act for the following reasons: 9 The District is, pursuant to Minnesota Statutes, Section 469.174, 10 subdivision 11, a"housing district" because it consists of a project or 11 portions of a project or a portion of a project intended for occupancy, in 12 part, by persons or families of low and moderate income as defined in 13 Chapter 462A, Title II of the National Housing Act of 1934; the National 14 Housing Act of 1959; the United States Housing Act of 1937, as amended; 15 Title V of the Housing Act of 1949, as amended; and any other similar 16 present or future federal, state or municipal legislation or the regulations 17 promulgated under any of those acts. The fair market value of the 18 improvements which are constructed for commercial uses or for uses other 19 than low and moderate income housing will not consist of more than 20 20 percent of the total fair market value of the planned improvements in the 21 Tas Increment Financing District. The fair market value of the 22 improvements is determined using the cost of construction, capitalized 23 income or other appropriate method of estimating market value. 24 The project to be constructed in the Tax Increment Financing District will 25 consist of approximately 8'1 rental housing units, and at least 20% of the 26 units will be occupied by individuals whose family incomes are 50% or 27 less than area median gross income. 28 29 30 31 2.03. It is anticipated that 100% of the planned improvements in the Tax Increment Financing District will be far low and moderate income housing purposes. The City Council hereby reaffirms the following findings: 32 (a) The City Council further finds that the proposed development, in the 33 opinion of the City Council, would not occur solely through private investment within the 34 reasonably foreseeable future and, therefore, the use of tax increment financing is deemed 35 necessary. The specific basis for such finding being: 36 37 38 39 40 The properiy on which housing development will occur would not be developed in the reasonably foreseeable future since it is contaminated property. The Developer has represented that it could not proceed with the development without tas increment assistance. 41 (b) The City Council further finds that the Tax Increment Financing Plan, as aRiG��.�� o�._S� 42 amended, conforms to the general plan for the development or redevelopment of the City 43 as a whole. The specific basis for such finding being: 44 The Tas Increment Financing Plan will generally compliment and serve to 45 implement policies adopted in the City's comprehensive plan. The 46 housing development contemplated is in accordance with the existing 47 zoning for the property. 48 (c) The City Council fiuther finds that the Tas Increment Financing Plan, as 49 amended, will afford maximum opportunity consistent with the sound needs of the City 50 as a whole for the development of the Taa� Increment District by private enterprise. The 51 specific basis for such finding being: 52 The proposed development to occur within the Tas Increment District is 53 housing. The development will increase the tasable market valuation of 54 the City. The available housing in the W. 7th Street area of the City will 55 expand by more than 87 rental housing units with the completion of the 56 development contemplated by this Tax Increment Financing Plan. 57 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, 58 Subdivision 3(2), the City Council hereby finds that the increased mazket value of the 59 property to be developed to the property added by the Second Amendment to the Tas 60 Increment District that could reasonably be expected to occur without the use of tax 61 increment financing is $-0- , which is less than $3,524,218, which is the market value 62 estimated to result from the proposed development (i.e., $4,430,710) less the present 63 value of the projected tax increments for the maximum duration of the Tax Increment 64 District (i.e., $906,492). In making these fmdings, the City Council has noted that the 65 property has been undeveloped far many years and would likely remain so if tax 66 increment financing is not a�ailable. Thus, the use of taac increment financing will be a 67 positive net gain to the City, the School District, and the County, and the tax increment 68 assistance does not exceed the benefit which will be derived therefrom. 69 2.04. The provisions of this Section 2 are hereby incorporated by reference into and 70 made a part of the Amended Plan. 71 Section 3. Approval of Amendment of the Tax Increment Financing Plan. 72 3.01. The Tax Increment Plan for the Osceola Pazk Tas Increment Financing District as 73 amended by an Amended and Restated Taac Increment Financing Plan dated June 26, 2002, is 74 hereby approved and the Amended Plan is hereby adopted. 75 3.02. The staff of the City, the staff of the Authority and the City's and Authority's 76 advisors and legal counsel are authorized and directed to proceed with the implementation of the 77 TaY Increment District and the Amended Plan and for this purpose to negotiate, draft, prepare 78 and present to the Board of Commissioners of the Authority for its consideration all further 79 plans, resolutions, documents and contracts necessary for this purpose. 80 3.03. The staff of the Authority is hereby directed to file a copy of the Tax Increment 81 Financing Plan, as amended, with the County Auditor of Ramsey County and the Commissioner ORIGINqL 0}_5�� 82 of Revenue and to request the County Auditor to certify the original tas capacity of the properry 83 in the Tas Increment Financing District. Requested by Department of: Plannin4 & EconamiC DevelopmenC � By' Form Approved by C' y AttornC� By: Adopted by Council: Date _���p c3.�� a.� � Approved by Fina Services Adoption Certified by Council Secretary (��, �} , ��L�y� ,„ A p �^i{.-tX 4 �=�- c-fh. By: J��`'' �- . BY. � � � —Z.XX�t/ Approved by Mayor for Sul6tnission to Covncil , ,,,�7_ d� Approved by Mayor: te Y� 4 By: � DEPARTMENT/OFFICE/COUNCIL: . DATE INITIATED GREEN SHEET NO.'IOIHc4H ��' S� PED/W. Team 6/14/02 ' CONTACT PERSON & PRONE: � [MT�TE INII7AI.mATE Joan Trulsen 66694 1 DEPARTMENT DIIi- CITY COUNCIL MIJST BE ON COIJIVCII. AGENDA BY (DATE) ASSIGN Z CITY ATTORNEY� _ CITY CLERK NUMBER � �ANCIALSERVDIR FINANCIALSERV/ACCTG June 26 , ZOO2 FOR 4 MAYOR(ORASST.) _CIVILSERVICECOMMISSION ROUTING PUBLIC HEt1RING o�Ex TOTAL q OF SIGNATURE PAGES _1_(CLIP ALL LOCATIONS FOR S[GNA'I'IJRE) ncriorv �QvESren: City Council to hold a Public Hearing on a resolution amending the Tas Increment Financing Plan for the Osceola Park Taac Increment Financing district RECOMMENDATIONS: Approve (A) or Reject (R) PERSONAL SERV[CE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNING COMMISSION 1. Has this person/firm ever worked under a contract for this deparhnent? CIB COMMI'I7'EE Yes No CML SERVICE COMMISSION 2. Has this person/firm ever been a ciTy employee� Yes No 3. Does this person/firm possess a skill not normally possessed by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet iNl'CIATING PROBLEM, ISSUE, OPPORTUNI77 (Who, What, When, Where, Why): Resolution approving the amendment of the tax increment financing plan for the Osceola Park Taac Increment Financing District. The project was originally proposed as a 78 unit senior home ownership condo and has been changed to an 87 unit senior rental project. �°-° 1 ADVANTAGES IF APPROVED: � Project can move forward — DISADVANTAF,ES IF AP� D: _�� c��C e2�BQ7� ���z s. None � � � � � `Z��� DISADVANTAGES IF NOT APPROVED: `, .:4 1 Project will not receive TIF financing TOTAL AMOUNT OF TRANSACTION: $ COST/REVENUE BUDGETED: FUNDING SOURCE: ACTIVITY NUMBER: FINANCIAL INFORMATION: (EXPLAIN) m �os«oia r�o�u�Fly�e�n�.e,� .