07-929Council File # 67� ! �
GreenSheet# 3044070
RESOLUTION ��
SAINT PAUL, MINNESOTA
Presented
RESOLUTION APPROVING THE
ESTABLISHMENT OF A TAX INCREMENT FINANCING DISTRICT
AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN
PUBLICHEARING DISTAICT IS
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
Section 1. Recitals.
1.01 The Housing and Redevelopment Authority of the Ciry of Saint Paul, Minnesota (the "Authoriry") has
heretofore established the Shepard Davern Redevelopment Project Area (the "Project Area") and has adopted a
redevelopment plan therefore (the "Redevelopment Plan") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as
amended.
1.02- The Authority has asked the City Council to approve the creation of the High]and Pointe Lofts TaY Increment
Financing District as a housing tax increraent financing district under Minnesota Statutes, Section 469.174, Subdivision 11
(the "Ta�c Increment Financing District"), and the adoption of a Ta� Increment Financing Plan therefore, all pursuant to and
in accordance with Minnesota Statutes, Section 469.174 through 469.1799 (the "Tax Increment AcY').
1.03 The Authority has performed all actions requued by law to be performed prior to the creation of the Tax
Increment Financing District and adoption of a Tas Tncrement Plan therefore, including, but not limited to, notification of the
Ramsey County Commissioner representing the area of the County in which the Tax Increment Financing District is located,
and delivering a copy of the Ta�c Increment Financing Plan to Ramsey County and Independent School District Number 625,
which have taYing jurisdiction over ffie property to be included in the Tax Increment Financing District. The Authority has
requested that the City approve the adoption of the Tax Increment Financing Plan and the creation of the Tas Increment
Financing District following the holding of a public heazing upon published and mailed notice as required by law.
Section 2. FindinQS for the Creation of the Tax Increment Financinr Dish�ict and Adootion of a TaY Increment
Financine Plan Therefore.
2.01 The Ciry Council hereby finds that the creation of the Tax Increment Financing District and adoption of the
Tas Increment Financing Plan therefore, are intended and, in the judgment of the City Council, its effect will be, to cany out
the objectives of the Redevelopment Plan and to create an impetus for the conshuction of low and moderate income housing,
and will otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan
and Tax Increment Financing Plan.
2.02 The City Council hereby finds that the creation of the Ta�c Increment Financing District and the adoption of
the Tax Tncrement Plan are intended, its effect will be, to carry out the objectives of the Redevelopment Plan by creating an
impetus far the redevelopment of blighted shuctures and the development of housing facilities in the City and otherwise
promote public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment
Financing Plan.
2.03 The City Council hereby finds that the Tax Increment Financing District qualifies as a"housing districY'
within the meaning of the Tax Tncrement Act for the following reasons:
The Disirict is, pursuant to Minnesota Statutes, Section 469.174, Subdivision I 1, a"housing district" because it consists
of a project or portions of a project or 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 or the regulations promulgated
s��r x'r - - -.. -- . _ -
� Green Sheet Green Sheet
Green Sheet Green Sheet Green Sheet Green Sheet �
e�-�a�
pE ��a��B��nomicDevelopment
ConWd Person & Phone:
Joan Tiutsen
6-6694
Must Be on Council Agenda by (Date): '
03-0CT-07
Doc. Type: PUBLIC HEARING (RESOLUI
E-Document Required: Y
Document Contact: Joan Trulsen
Contact Phone: 6-6694
17-SEP-07
�
A55ign
Number
For
Roufing
Order"
ToYal # of Signature Pages _(Ciip All Locations for Signature)
Green Sheet NO: 3044070
0 lannin & Economic Develo me Acctin eam I,eader �
I lannm & Economic Develo me De artment D"uector �
2 i Afkorne
3 inanciatServices Director
4 or's OfSce Ma or/Aasistant
5 oanN
6 i Clerk Ci Clerk
Sienatures on resolution approving the establishment of a Tax Increment Financing Distric[ and the adoption of a Tax Iacrement
FinancingPlan ;4. T^2 �.�^�. -pL �� �,
iaanons: Approve (A) or F
Planning Commission
CIB Committee
1. Has this person/firm ever worked under a contract for this department?
Yes No
Civil Service Commission 2. Has this person/film ever been a city employee?
Yes No J
3. Does this persoNfittn possess a skill not normal y possessed by arty
current city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiating Probiem, Issues, Opportunity (Who, What, When, Where, Why):
The City Council is asked to approve the creation of the Highland Pointe Lokfrs Tax Increment Financing District as a housing taz
increment financing district under Minnesota Statutes, Section 469, Subdivision 11 and the adoption of a Tas Increment Financing
Plan.
Advantages If Approved: ,
121 unit apar[ment btilding can be constructed at Daven and West Seventh St.
DisadvanWges If ApQroved:
None
Disadvantages If Not Approved:
Project can not proceed
� �'�: CostlRevenue Budgeted;
Tratrsaction;
Funding Source: Activity Number:
Financial infortnation: �� �p���,�„�+ j � q �p`, sr�� � y r� �� 1Ea.Y� Y'p�/��
(Expfain) 3 � �
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September 17, 2007 1:77 PM Page 1
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under any of those acts. No more than 20 percent of the squaze footage of buildings that receive assistance from tax
increments will consist of commercial, retail or other nonresidential uses.
The project to be constructed in the Tax Increment Financing Disaict will consist of approximately 121 units of renta]
housing and related pazking faciliries which at least twenty percent (20%) of the units will be initially rented and
occupied by individuals whose family income is less than or equal to fifty percent (50%) of inedian income.
2.04 The City Council hereby makes the following findings:
a) The City Council fwther 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
tax increment fmancing is deemed necessary. The specific basis for such finding being:
The housing development will result in the conshuction of low and moderate income housing uniu which
would not be constructed 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 further finds that the Ta�c Increment Financing PIan conforms to the general plan
for the development or redevelopment of the City as a whole. The specific basis for such finding being:
The Ta�c 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 property.
(c) The City Council further finds that the Tax Increment Financing Plan will afford maximum
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 Ta� Increment Flnancing District is primazily low and moderate
income housing. The development will increase the taxable market valuation of the City. The available housing
in the City will expand by approximately 121 rental units with the complerion of the development contemplated
by this Tax Increment Financing Plan.
(d) For purposes of compliance with Minnesota Statutes, Section 469175, Subdivision 3(2), the Ciry
Council hexeby finds that the increased market 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., $19,894,680) after
subtracting the present value of the projected tax increments for the maximum duration of the Tax Increment Financing
District (i.e., approximately $2,320,932). In making these fmdings, the City Council has noted that the property has
been under utilized for many years and would likely remain so if tax increment financing is not available. Thus, the use
of tax increment Pmancing wi116e a positive net gain to the City, the School District, and the County, and the tas
increment assistance does not exceed the benefit which will be derived therefrom.
(e) The City elects to retain all of the captured tax capacity to finance the costs of Tax Increment
Financing Dishict. The City elects the method of tax increment computation set forth in Minnesota Statutes, Section
469.177, Subd. 3(a).
2.06 The provisions of this Section 2 are hereby incorporated by reference into and made a part of the Tax
Increment Financing Plan.
Section 3. Creation of the Tax Increment Financina District and Approval of the Tax Increment Financine Plan
3.01 The creation of the Tax Increment Financing District and the Tas Increment Financing Plan aze hereby
approved.
6�-9�-�I
107 3A2 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal counsel aze
108 authorized and directed to proceed with the establishment of the Tax Increment District and the Tax Increment Financing
109 Plan and for this purpose to negotiate, draft, prepaze and present to the Boazd of Commissioners of the Authority for its
1 10 consideration all further p]ans, resolutions, documenu and conhacu necessary for this purpose.
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Form Approv� City . � � a`�
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Adoption Certified by CounciLSecretary
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By:
Approve or: ate D 7
By:
Form App�b} A� or for S i'on t ounc'
By:
� oved by the Office of inancial Services �
Adopted by Council: Date �pf//'3lo�IJ07