08-706Council File # �A�Q(p
Green Sheet # _��S S'(_�
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
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RESOLUTIOI3 APPROVING THE
ESTABLTSHMENT OF A TA.X INCREMENT FINANCING DISTRICT
(2700 UNIVERSITY AVENLTE PROJECT) AND THE ADOPTTON OF A
TAX INCREMENT FINANCING PLAN THEREFOR — District 12
5 BE IT RESOLVED by the Ciry Council of the City of Saint Paul, Minnesota (the "City") as
6 follows:
7 Section 1. Recitals
8 1.01 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
9"Authority") has heretofore established the Emerald Park Redevelopment Project Area (the
10 "Redevelopment Pro}ect Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan").
11 1.02 The Authority has asked the City Council to approve the creation, within the
12 Redevelopment Project Area, of a TaY Increment Financing as a redevelopment tas increment financing
13 district under Minnesota Statutes, Section 469.174, Subdivision 10 (the "Tax Increment District"), and the
14 adoption of a Tax Increment Financing Plan therefor, all pursuant to and in accordance with Minnesota
15 Statutes, Section 469.174 through 469.1799 (the "Tax Increment Act").
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Presented by
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1.03 The Authority has performed a11 actions required by law to be performed prior ta the
creation of the T� Increment District and adoption of a Tax Increment Plan therefor, including, but not
limited to, notification of the Ramsey County Commissioner representing the area of the County in which
the Ta�c Increment Financing District is located, and delivering a copy of the Tax Increment Financing Plan
to Ramsey County and Independent School District Number 625, which have taxing jurisdiction over the
property to be included in the Tax Increment District. The Authority has requested that the City approve
the adoption of the Tax Increment Financing Plan and the creation of the Tas Increment District following
the holding of a public hearing upon published and mailed notice as required by law.
24 Section 2. Findines for the Creation of T� Increment Financin� District (2700 University
25 Avenue Proiect and Adoption of a Taz� Increment Financine Plan therefor.
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2.01 The City Council hereby finds that the creation of Tax Increment Financing District (2700
University Avenue Project) and adoption of the Taac Increment Plan therefor, are intended and, in the
judgment of the City Council, its effect will be, to carry out the objectives of the Redevelopment Plan and
to create an impetus for the redevelopment of a blighted area, and the construction of commercial and retail
facilities, including structured pazking, and will otherwise promote certain public purposes and accomplish
certain objectives as specified in the Redevelopment Plan and Tax Increment Financing Plan.
32 2.02 The City Council hereby finds that Tas Increment Financing District (2700 University
33 Avenue Project) qualifies as a"redevelopment districY' within the meaning of the TaY Increment Act for
34 the following reasons:
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The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision
10(a)(1), a'4edevelopment district." The Tax Increment Financing District contains one
pazcel. The pazcel is deemed to be occupied since it meets the requirements of Secrion
469.174, Subd. 10(a}(1) in that at least 70°Jo of the azea of the parcel was occupied by
build'vngs, streets, urilities, paved or gravel pazking lots or similar structures. In addition,
there was a single building located in the TaY Increment Financing District. That building
was deemed to be "structurally substandard" to a degree requiring substantial renovation or
cleazance. The "structurally substandazd" building was not in compliance with the building
code applicable to new buildings, and the costs of modifying such building to satisfy the
building code is more than 15 percent of the cost of constructing a new structure of the same
squaze footage and type on the site. The reasons and support facts for these determinations
aze set forth in a report dated December 1, 2005, prepared by Short Elliott Hendrickson,
Inc., a copy of which is on file with the Executive Director of the HRA. In accordance with
Minnesota Statues, Section 469.174, subd. 10(d), the building located in the Tax Increment
Financing District was demolished in August of 2006 by a developer pursuant to an
agreement with the HRA. Prior to the demolition, the HRA found that the building was
"shucturally substandard" within the meaning of the Tax Increment Financing Act.
2.03 The City Council hereby makes the following findings:
(a) The City Council further 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 tas increment financing is deemed necessary. The specific basis
far such finding being:
The property on which commercial and retail development will occur would not be
developed in the reasonably foreseeable future because of the presence of a
substandard building that needed to be demolished. The Developer has represented
that it would not proceed with the development without tas increment assistance.
(b) The City Council fiuther finds that the Tax 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 compliment and serve to
implement policies adopted in the City's comprehensive plan. The commercial and
retail development contempiated is or will be in accordance with the zoning for the
property.
(c) The City Council further finds that the T� 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 District by private enterprise. The specific basis for such finding being:
The proposed development to occur within the TaY Increment District is commercial
and retail and will increase the availability of these facilities in the area. The
development will increase the t�able market valuation of the City.
ag.�a�
74 (d) For purposes of compiiance with Minnesota Statutes, Section 469.175, Subdivision
75 3(2), the City Council hereby fmds that the increased mazket value of the property to be developed
76 within the Tas Increment District that could reasonably be expected to occur without the use of t�
77 increment financing is $0, which is less than the mazket value estimated to result from the proposed
78 development (i.e., $18,745,622 after subtracting the present value of the projected tas increments
79 for the m�unum duration of the Tas Increment District (i.e., $3,498,197). In making these
80 findings, the City Council has noted that the properry has been undeveloped for many years and
81 would likely remain so if tax increment fmancing is not available. Thus, the use of taY increment
82 financing will be a posifive net gain to the City, the School District, and the County, and the taY
83 increment assistance does not exceed the benefit which will be derived therefrom.
84 2.04 The provisions of this Section 2 aze hereby incorporated by reference into and made a part
85 of the Tax Increment Financing Plan.
86 Section 3. Creation of Tax Increment Financing District (2700 Universitv Avenue Projectl and
87 the Tax Increment Financint Plan therefor.
88 3.01 The creation of Tax Increment Financing District (2700 University Avenue Project) is
89 hereby approved and the TaY Increment Financing Plan therefor is hereby adopted.
90 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and
91 legal counsel are authorized and directed to proceed with the implementation of the Tax Increment District
92 and the Tax Increment Financing Plan and for this purpose to negotiate, draft, prepare and present to the
93 Boazd of Commissioners of the Authority for its consideration all fiuther plans, resolutions, documents and
94 contracts necessary for this purpose.
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Bostrom
Carter
Harris
R e ent of:
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By:
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Adopted by Council: Date �]uf�a .��JIJ� Appr�d by�Ia�pr for�5�}ssio}�to Council
Adoption Certified by Council Secreta[� g
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Approved �+fi : Date �
By:
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�� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
6$ �0�
PE — Plamiug & Ecouomic Development
ContaM P¢rson 8 Phone:
Joan Tnilsen
6E694
Must Be on Council Agenda by
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Doa Typ • PUBLIC HEARING
E-Document Required: Y
�ocumentConWct: JoanTrulsen
19-JUN-0B
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Assign
Number
For
Routing
Order
ConWct Phone: 6-6694 I I
Total # of Signature Pages _(Clip All Locations for Signature)
Green Sheet NO: 3055812
0 lanniu & Economic Develo me �_�_9
1 lannin & Bwnomic Develo me De ar�ent Director �
2 " Attome
3 a or's Office Ma odAssisfant
4 onncil
5 ' Clerk Ci Clerk
Signatures on City Council Resoludon approving a TIF District Plan for 2700 University Avenue. District 12
idations: Approve (A) or Reject (ft�: Personal Service Gontrects Must Answer the Following Questions:
Planning Commission 1. Has this personffirtn ever worked under a contract for this department?
CIB Committee Yes No
CivG Service Commission 2. Has this perso�lfirtn ever hee� a city employee?
Yes No
3. Does this personlfirtn possess a ski11 not �ortnally possessed by any
current city employee?
Yes No
Explain all yes answer5 on separate sheet and aMach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why1:
Wellington Management proposes to construct a four story retail and office building at University and Berry with the help of
appmximately $2.4M indTiF pay-go note. The inccement financing will be received over 25 years.
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Advantages If Approved:
Project can begin in 2008
Disadvantages If Approved:
None
Disadvantages If Not Approved:
Project will not be constructed.
Trensaction:
Funding Source:
Financial lnformation:
(Explain)
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CostlRevenue Budgeted: RR? �-c�{-�{ SL
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June 19, 2008 10;36 AM Page 1