08-288Council File # 6g ' ���
Green Sheet # 3050733
RESOLUTTON
OF SAINT PAUL, MINNESOTA (,�.9
Presented By
RESOLUTION APPROVING THE
ESTABLISHMENT OF A TAX INCREMENT FINANCING DISTRICT
AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN
1 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City")
2 as follows:
3 Section 1. Recitals
4 1.01 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
5 (the "Authority") has heretofare estabiished the Riverfront Redevelopment Project Area (the
6 "Project Area") and has adopted a redevelopment plan therefor (the "Redevelopment Plan")
7 pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended.
8 1.02 The Authority has asked the City Council to approve the creation of the
9 Minnesota Building Tax Inarement Financing District as a housing taac increment financing
10 district under Minnesota Statutes, Section 469.174, Subdivision ll(the "Tax Increment
11 F3nancing DistricY'), and the adoption of a Ta�c Increment Financing Plan therefor, all pursuant to
12 and in accordance with Minnesota Statutes, Section 469.174 through 469.1'J99 (the "T�
13 Increment Act").
14 1.03 The Authority has performed all actions required by law to be performed prior to
15 the creation of the Taz� Increment Financing District and adoption of a Tax Increment Plan
16 therefor, including, but not limited to, notification of the Ramsey County Commissioner
17 representing the area of the County in which the Tas Increment Financing District is located, and
18 delivering a copy of the Tax Increment Financing Plan to Ramsey County and Independent
19 School District Number 625, which have taxing jurisdiction over the property to be included in
20 the Tax Increment Financing District. The Authority has requested that the City approve the
21 adoption of the Ta7c Increment Financing Plan and the creation of the Taic Increment Financing
22 District following the holding of a public hearing upon published and mailed nofice as required
23 by law.
24 Section 2. Findines for the Crearion of the Tas Increment Financing District and
25 Adontion of a Tax Increment Financing Plan Therefor.
26 2.01 The City Council hereby finds that the creation of the Taac Increment Financing
27 District and adoption of the TaY Increment Financing Plan therefor, aze intended and, in the
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28 judgment of the City Council, its effect will be, to carry out the objectives of the Redevelopment
29 Plan and to create an impetus for the consirucfion of low and moderate income housing, and wiil
30 otherwise promote certain public purposes and accomplish certain objectives as specified in the
31 Redevelopment Plan and TaY Increment Financing Plan.
32 2.Q2 The City Councii hereby finds that the crearion of the Tax Increment Financing
33 District and the adopfion of the Tas Increment Plan are intended, its effect will be, to carry out
34 the objectives of the Redevelopment Plan by creating an unpetus for the redevelopment of a
35 historic building and the development of housing facilities in the City and otherwise promote
36 public purposes and accomplish certain objectives as specified in the Redevelopment Plan and
37 Taac Increment Financing Plan.
38 2.03 The City Council hereby finds that the Tas Increment Financing District qualifies
39 as a"housing districY' within the meaning of the Taac Increment Act for the following reasons:
40 The District is, pursuant to Minnesota Statutes, Secfion 469.174, Subdivision i l,
41 a"housing districY' because it consists of a project or portions of a project or a
42 portion of a project intended for occupancy, in part, by persons or families of low
43 and moderate income as defined in Chapter 462A, Title II of the National
44 Housing Act of 1934; the National Housing Act of 1959; the United States
45 Housing Act of 193 7, as amended; Title V of the Housing Act of 1949, as
46 amended; and any other similaz present or future federal, state or municipal
47 legislation or the regulations promulgated under any of those acts. No more than
48 20 percent of the square footage of buildings that receive assistance from tax
49 increments will consist of commercial, retail or other nonresidenrial uses.
50 The project to be conshucted in the Tas Increment Financing District will consist
51 of approximately 137 units of rental housing. At least forty percent (40%) of the
52 units in the project that receives tarc increment financing assistance will be
53 initially rented and occupied by individuals whose family income is less than or
54 equal to sixty percent (60%) of inedian income.
55 2.04 The City Council hereby makes the following findings:
S6 (a) The City Council further finds that the proposed development, in the
57 opinion of the City Council, would not occur solely through private investment within the
58 reasonably foreseeable future and, therefore, the use of taac increment financing is deemed
59 necessary. The specific basis for such finding being:
60 The housing development will result in the renovation of an existing
61 historic building for low and moderate income housing units, which
62 renovation would not be undertaken in the reasonably fareseeable future.
63 The Developer has represented that it could not proceed with the
64 development without taY increment assistance.
65 (b) The City Council further finds that the Tax Increment Financing Plan
66 conforms to the general plan for the development or redevelopment of the City as a
67 whole. The specific basis for such finding being:
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T'he Tax Increment Financing Plan will generally complement and serve to
unplement policies adopted in the City's comprehensive plan. The
housing development contemplated is in accordance with the exisring
zoning for the property.
(c) The City Council further finds that the TaY Increment Financing Plan will
afford masimum opportunity consistent with the sound needs of the City as a whole for
the development of the Tas Increment Financing District by private enterprise. The
specific basis for such finding being:
The proposed development to occur witrun the Taa� Increment Financing
District is primarily low and moderate income housing. The development
will increase the taicable mazket valuation of the City. The available
housing in the City will expand by approximately 137 rental units with the
complefion of the development contemplated by the Talc Increment
Financing Plan.
(d) For purposes of compliance with Minnesota Statutes, Section 469.175,
Subdivision 3(2), the City Council hereby finds that the increased market value of the
property to be developed within the Talc 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., $8,998,216) after subtracting the present value of the projected taz� increments for
the ma7cimum duration of the Tas Increment Financing District (i.e., approximately
$1,056,685). In making these findings, the City Council has noted that the property has
been under urilized far many years and would likely remain so if tas increment financing
is not available. Thus, the use of tas increment financing will be a positive net gain to the
City, the School District, and the County, and the tax increment assistance does not
exceed the benefit which will be derived therefrom.
94 (e) To the extent required, the City elects to retain all of the captured taY
95 capacity to finance the costs of Tax Increme;nt Financing District. The City elects the
96 method of t� increment computation set forth in Minnesota Statutes, Section 469.177,
97 Subd.3(a).
98 2.06 The provisions of this Secrion 2 are hereby incorporated by reference into and
99 made a part of the Taac Increment Financing Plan.
] 00 Section 3. Creation of the Taaz Increment Financin¢ District and Approval of the TaY
101 Increment Financing Plan.
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3.01 The creation of the TaY Increment Financing District and the TaY Increment
Financing Plan are hereby approved.
104 3.02 The staff of the City, the staff of the Authority and the City's and Authority's
105 advisors and legal counsel are authorized and directed to proceed with the establishment of the
106 TaY Increment District and the Taac Increment Financing Plan and for this purpose to negotiate,
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107 draft, prepare and present to the Board of Commissioners of the Authority for its consideration
108 all fiuther pians, resolutions, documents and contracts necessary for this purpose.
109 Adopted by the City Council of the City of Saint Paul, Minnesota this 19�' day of
110 March, 2008.
Yeas � Nays � Absent � Reques�ed b}�,Dc�pai�t�ent of Plauning and Economic
Services
✓ I� By ' ��'
�, � Approved by
Adopted by Council: Date ��� y���)i� � B Y' —
Adoption Certified by Council Secretary Approved
BY � BY � —
Approve : Date Z� O �
By:
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Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
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DepartmenUoffice/cou�cil: Date Initiated:
PE P�Tmm�g&EconomicDcvclopmcm 04-MAR-OS Green Sheet NO: 3050733
�
Contact Person 8 Phune: Departrnent Sent To Person Initial/Date �
Diane Noldqui5t � 0 Planniug & Ewnomic DeveloDme� Al Cadson =�`/
266-6640 �—
Assign 7 Planning & Economic Developme� Depar[ment Director_
� Must Be on Council Agenda by (Date): Number Z 6N Aaornev Pete NcCall
79-MAR-O8 For — —
-' -- Routing y�3' Mavor's Office 9lavur(Assistant
Doc.Type: RESOLUTION(� � i �q� Order �-
_, __ _ __ �WIQ�lU (-� 3 f�' Council CitvCauncil-Thune
3 Ci Cierk � Citv Cterk
E-DocumentRequired: Y � � jnqnL�V� SnrVECC ) !�C ¢ �V � -!—
Document Contact: Diane Nordqmst � � ��--- —�� �
Contact Phone: 266-6640
Total # of Signature Pages _(Clip Aff Locatiotts foc Signaturej
Riblic Hearing and Adoption Of A Resolution Au[horizing the HRA to establvsh a new Tax Inaement Fivancing Dist�ict foc The �
Minnesota Bmlding. The developer is The Sand Company who wil] be developing 137 units of affordable rental housin� m The
Minnesota Buildmg.
RecommendaLons: Approve (A) or Reject (R). ; Personal Service Contracts Must Answer the Following Questions I,
Planning Commission I 1. Has this persoNfirm ever worked under a contract for this department? �,
CIB Committee Yes No '.
Civil 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
Initiating Problem, Issues, Opportunity (Who, What, Whe�, Where, Why):
� In April 2007, the HRA received an application for Tax Inaement Financing_
Advantages If Approved:
The developers wi]I be able to move forward with the development of 137 imits of affordable xenta] housing.
Disadvantages If Approved:
None
Disadvantages If Not Approved:
The project would not be able to move forward.
Transaction: $1,000,000.00
Funainy source: Tax Increment Financing
Financial Information: New Housing TTF Dist[ict
(E�cplain)
Cost/Revenue Budgeted: N
Activity Number.
�CVC'FICU �
MAR 0 6 2008
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March 4, 2005 2:18 PM Page 1