05-549Council File # 0 � �%-/
Resolution #
Green Sheet # ���� 0 �
Presented By
Re£erred To
RESOLUTION
CITY OF AINT PA , MINNESOTA ��
RESOLUTION APPROVING THE
ESTABLISHMENT OF A TAX INCREMENT FINANCING DISTRICT
THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN
AND THE AMENDMENT OF A REDEVELOPMENT PLAN
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as
follows:
10 Section 1. Recitals
11 1.01 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
12 "Authority") has heretofore established the West Midway - South St. Anthony Pazk Redevelopment
13 Project Area (the "Project Area") and has adopted a redevelopment plan therefor (the "Redevelopment
14 Plan") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended.
15 1.02 The Authority has asked the City Council to approve the amendment of the
16 Redevelopment Plan and the creation of the Cazleton Lofts Tax Increment Financing District as a
17 housing tax increment financing district under Minnesota Statutes, Section 469.174, Subdivision 11
18 (the "Tax Increment Financing District"), and the adoption of a Taac Increment Financing Plan therefor,
19 all pursuant to and in accordance with Minnesota Statutes, Section 469174 through 469.1799 (the
20 "Tax Increment Act").
21 1.03 The Authority has performed all actions required by law to be performed prior to the
22 amendment of the Redevelopment Pian and the creation of the Tas Increment Financing District and
23 adoption of a TaY Increment Plan therefor, including, but not limited to, notification of the Ramsey
24 County Commissioner representing the area of the County in which the Tax Increment Financing
25 District is located, and delivering a copy of the Tax Increment Financing Plan to Ramsey County and
26 Independent School District Number 625, which have ta��ing jurisdiction over the property to be
27 included in the Tax Increment Financing District. The Authority has requested that the City approve
28 the amendment of the Redevelopment Plan and the adoprion of the Tax Increment Financing Plan and
29 the creation of the Tas Increment Financing District following the holding of a public hearing upon
30 published and mailed notice as required by law.
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31 Section 2. Findings for the Creation of the TaY Increment Financing District and Adoption
32 of a T� Increment Financme Plan Therefor and the Amendment of the Redevelopment Plan.
33 2A1 The City Council hereby finds that the amendment of the Redevelopment Plan, the
34 creation of the TaY Increment Financing District and adoption of the Tax Increment Financing Plan
35 therefor, are intended and, in the judgment of the City Council, its effect wili be, to carry out the
36 objectives of the Redevelopment Plan and to create an impetus for the construction of low and
37 moderate income housing, the reuse of historic buildings and will otherwise promote certain public
38 purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment
39 Financing Plan.
40 2.02 The City Council hereby fmds that the amendment of the Redevelopment Plan, the
41 creation of the Tax Increment Financing Distdct and the adoption of the Tax Increment Plan are
42 intended, its effect will be, to carry out the objectives of the Redevelopment Plan by creating an
43 impetus for the redevelopment of blighted structures and the development of housing facilities in the
44 City and otherwise promote public purposes and accomplish certain objectives as specified in the
45 Redevelopment Plan and Tax Increment Financing Plan.
46 2.03 The City Council hereby fmds, in connection with the amendment of the
47 Redevelopment Plan that (a) the land in the Redevelopment Project would not be made available for
48 redevelopment without the financial aid to be sought, (b) the amendment of the Redevelopment Plan
49 affords the maacimum opportunity, consistent with the needs of the City of Saint Paul as a whole, for
50 the redevelopment of the area by private enterprise, and (c) the amendment of the Redevelopment Plan
51 conforms to the general plan for the development of the City as a whole
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2.04 The City Council hereby finds that the Tax Increment Financing District qualifies as a
"housing district" within the meaning of the Tax Increment Act for the following reasons:
The District is, pursuant to Minnesota Statutes, Secrion 469.174, Subdivision 11, a
"housing district" because it consists of a project or portions of a project ar a 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 ar the regulations promulgated under any of those
acts. The fair market value of the improvements which aze conshucted for commercial
uses or for uses other than low and moderate income housing will not consist of more
than 20 percent of the total fair market value of the planned improvements in the Tax
Increment Financing District. The fair mazket value of the improvements is determined
using the cost of construction, capitalized income or other appropriate method of
estnnating market value.
The project to be consriucted in the Tax Increment Financing District will consist of
approximately 171 units of rental housing and related pazking facilities which at least
twenty percent (20%) will be initially rented and occupied by individuals whose family
income is less than or equal to fifiy percent (50%) of inedian income, and the mazket
value of improvements for other than low and moderate income housing or commercial
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properry will be less than twenty percent (20%) of the total fair mazket value of the
planned improvements.
It is anticipated that not less than 80% of the planned unprovements in the Tax
Increment Financing District will be for low and moderate income housing purposes.
76 2.05 The City Council hereby makes the following fmdings:
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(a) The City Council fiirther finds that the proposed development, in the opinion of
the City Council, would not occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of ta�c increment fmancing is deemed necessary. The
specific basis for such fmding being:
The housing development will result in the reuse of historic buildings which
would not be xedeveloped in the reasonably foreseeable future. The Developer
has represented that it could not proceed with the development without tax
increment assistance.
(b) The City Council fiuther finds that the Tas Increment Financing Plan conforms
to the general plan for the development or redevelopment of the City as a whole. The specific
basis for such finding being:
The Tax Increment Financing Plan will generally complement and serve to
implement policies adopted in the City's comprehensive plan. The housing
development contemplated is in accordance with the existing zoning for the
properry.
(c) The City Council further finds that the Tas Increment Financing Plan will afford
m�imum opportunity consistent with the sound needs of the City as a whole for the
development of the Tax Increment Financing District by private enterprise. The specific basis
for such finding being:
The proposed development to occur within the T� Increment Financing District
is primazily low and moderate income housing. The development will increase
the t�able market valuation of the City. The available housing in the midway
area of the City will expand by approximately 171 rental units with the
completion of the development contemplated by this Tax Increment Financing
Plan.
(d) For purposes of compliance with Minnesota Statutes, Section 469.175,
Subdivision 3(2), the City Councii hereby finds that the increased mazket value of the property
to be developed within the Tax Increment Financing District that could reasonably be expected
to occur without the use of tax increment financing is $0, which is less than the mazket value
increase estimated to result from the proposed development (i.e., $17,394,400) after subtracting
the present value of the projected t� increments for the maxnnum duration of the T�
Increment Financing District (i.e., approximately $3,500,000). In making these findings, the
City Council has noted that the property has been under utilized for many years and would
likely remain so if tas increment fmancing is not available. Thus, the use of tax increment
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111 financing will be a positive net gain to the City, the School District, and the County, and the taac
112 increment assistance does not exceed the benefit which will be derived therefrom.
113 (e) The City elects to retain all of the captured tax capacity to finance the costs of
114 TaY Increment Financing District. The City elects the method of taY increment computation set
115 forth in Minnesota Statutes, Section 469.177, Subd. 3(a).
116 2.06 The provisions of this Section 2 are hereby incorporated by reference into and made a
117 part of the T� Increment Financing Plan.
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Section 3. Creafion of the Tax Increment Financing District and Apnroval of the Tax
Increment Financing Plan and Amendment of the Redeveloroment Plan.
3.01 The creation of the T� Increment Financing District, the amendment of the
Redevelopment Plan and the Tax Increment Financing Plan are hereby approved.
3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors
and legal counsel are authorized and directed to proceed with the implementation of the amendment to
the Redevelopment Plan and the establishment of the Tas Increment District and the Tax Increment
Financing Plan and far this purpose to negotiate, draft, prepare and present to the Board of
Commissioners of the Authority for its consideration all fiu•ther plans, resolutions, documents and
contracts necessary for this purpose.
l�u
Adopted by Council: Date .,�ttir�R lS a00
Adoption Certified by Council
Secretary
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Approved
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Requested by Department of:
Plannina & Economic Development
B � �,
Approved by Financial Services
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BY� a ,
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Form Approved by City Attorney
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
PE — p���ng&EconomicDevelopment J 02JUN-05 I Green Sheet NO: 3026683
Co�act PersOn & PhOn¢' �w�n�sem �n io re�aus�
Diane Nordquist 0 lanoin¢ & Economic Develou I Al Carison �
�� A55ign 1 � lanoin2 & Economic De eloo Deoartment D'vector i
Must Be on Council enda by (Date): Number 2 i Attorne I Ci Attornev
For
� O � Routing 3 inancial Services � Oflice Financial Servi
Order 4 avor's Oflice I MavodAssistant I
5 'N Clerk Ctitv Clerk i
ToYai # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Public Hearing and Adoprion of a Resolution Authorizing the HRA to establish a new Taac Increment Financing Distdct for Cazleton
Place Lofts. The developers aze the Johnson Brothers and Dominium Development & Acquisitions who will be developing 171 units
of affordable rental housing located along University Ave. neaz Raymond.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Civil Service Commission
Personal Service Contracts Must Answer the Foilowing Questions:
1. Has this person/firm ever worked under a contrad for this departmenY?
Yes No
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
curzent city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): �
On Apri127; 2005, ffie HRA approved a Resolution authorizing prepazation of a Tax Increment Financing Plan, Development Agreement
and Housing P=ogram for the Cazleton Place Project.
AdvanWqes If Approved:
The developers will be able to move forwazd with the development of 171 units of affoxdable rental housing.
Disadvantaqes If Approved:
None.
Disadvantages If Not Approved:
The project would not be able to move forwazd.
v Transaction: � 3�400000 Cast/Revenue Budgeted:
Fundinq source: Tax Increment Financinc nctivi�v Numner:
Financiai Information: New Housing TIF' Dishict.
(Explain)
RECENED
JUN 0
MAYOR'S OFFICE
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