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Presented By
Referred To
Committee: Date
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5 RESOLUTION APPROVING TI� AMENDMENT OF TF� REDEVELOPMENT
6 PLAN FOR THE NEIGHBORHOOD REDEVELOPMENT PROJECT AREA,
7 TE� CREATION OF A REDEVELOPMENT TAX INCREMENT
8 FINANCING DISTRICT AND Tf� ADOPTION OF A TAX INCREMENT
9 FINANCING PLAN Tf�REFOR
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13 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
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Section 1 R i s.
1.01. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authorit}�')has
asked the City to approve (a) an amendment to the Redevelopment Plan for the Neighborhood
Redevelopment Project Area to e�and its boundaries; (b) the creation of a Redevelopment Taa� Increment
Financing District covering the property commonly referred to as 1919 University (the "Redevelopment
District"), and (c) the adoption of a Tas Increment Financing Plan therefor, all pursuant to and in accordance
with Minnesota Statutes, Sections a69.001 through 469.047, both inclusive, as amended, and Minnesota
Statutes, Sections 469.174 to 469179, both inclusive, as amended.
1.02. The Authority has performed all actions required by law to be performed prior to the amendment of the
Redevelopment Plan and the creation of the Redevelopment District and the adoption of a Ta�c Increment Plan
therefor, including, but not limited to, notifica6on of Ramsey County, the County Commissioner representing
the portion of the County in which the District is proposed to be created and Independent School District
Number 625, and has requested that the City approve the adoption of the Ta�c Increment Financing Plan and
the creation of the Redevelopment District following the holding of a public hearing published and mai3ed
notice as required by law.
Section 2. Fin ings for the Amendment of the Redevelo.�ment plan for the Neighborhood Redevelo�ment
Project Area and the Creation of a Redevelo}�ment Taac Increment Financing District and ado�rion of a Tar
Increment Financin�Plan therefor.
38 2.01. The City Councii hereby finds that the amendment of the Redevelopment Plan for the Neighborhood
39 Redevelopment Project Area and the creation of a Redevelopment T� Increment Financing District and
40 adoption of a Tax Increment Plan therefor, are intended and, in the judgment of the Authoriry, its effect will
41 be, to redevelop 1914 University, provide an impetus for the development, to increase the t� base and
42 employment and otherwise promote certain pubiic purposes and accomplish certain objectives as specified in
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Council File #
Green Sheet # ���`" `
RESOLtfTION
CITY OF SAINT PAUL, MINNESOTA
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43 the Redevelopment Plan, as modified, and Tax Increment Financing Plan. �� ���"-'
44 2.02. The City Council hereby finds that the Tax Increment Financing District qualifies as a"district" within
45 the meaning of M'innesota Statutes, Section 469.174, Subdivision 10, for the following reasons:
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Parcels occupied by buildings make up more than 70% of the District; more than 50% are stntcturally
substandard to the degree of substantial renovation and the buiiding does not currently comply with the
building codes and will require much greater cost than 15% of the cost of a new building to bring it up
to code.
The reasons and supporting facts are based on contractors estimates.
54 2.03. The City Council hereby makes the following additional findings:
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(a) The City Council further finds that the proposed development, in the opinion of the
Authoriry, would not occur solely through private investment within the reasonably foreseeable future
and, therefore, the use of tazi increment financing is deemed necessary. The specific basis for such
finding being:
(b) The City Council further finds that the T� Increment F'inancing 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 Ta�c Increment Financing Plan will generally compliment and serve to implement policies
adopted in the City's comprehensive plan. The development contemplated to occur on the
property is in accordance with the existing zoning for the property.
(c) The City Council further finds that the Taac Increment Financing Plan will afford
maYimum opportunity consistent with the sound needs of the City as a whole for the development of the
Redevelopment Taac Increment District by private enterprise. The specific basis for such finding being:
(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 Taac Increment District that could reasonably be expected to occur without the use of t� increment
financing is $0, which is less than the market value estimated to result from the proposed development
after subtracting the present value of the projected tas increments for the maximum duration of the TaY
Increment District. In making these findings, the City Council has noted that the property has been
undeveloped for many yeazs and would likely remain so lf t� increment financing is not available.
Consequently, the City Council reasonably expects that the increase in the market value of the property
in the Tax Increment District, without the aid of tax increment financing, would be $0. In addition,
based on cunent estimates, it appears that the market value of the future development will be at least
$2,350,000 with tas increment financing. The �pected present value of the tax increment over 25
years, which is the ma3cimum duration of the Taac Increment District as set forth in the Tax Increment
Financing Plan is substantially less than $2,350,000. Thus, the use of ta�c 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.
2.04. The provision of this Section 2 are hereby incorporated by reference into and made a part of the
90 Tax Increment Financing Plan.
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92 Section 3. Amendment of Redevelonment Plan for the Neighborhood Projst Area and the Creation
93 of a Redevelo�pment Ta�t Increment Financing District therein and the Tax Increment Financin��lan therefor
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95 3.01. The amendment of the Redevelopment Plan for the Neighborhood Project A.rea and the creation
96 of the Redevelopment Taac Increment Financing Plan therefor, are hereby approved.
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98 3.02. The Redevelopment District is exempt from the reduction in staze aid because the City and
99 Authority have elected to make the qualifying local contribution pwsuant to lvfinnesota Statutes, Section
100 273.1399, subdivision (d).
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3.03. The staff of the City and the Authority and their advisors and legal counsel are authorized and
directed to proceed with the implementation of the Redevelopment Tax Increment Financing District and the
T� Increment Financing Plan therefor.
Requested by Department of:
Adopted by Council: Date I�f�� ��
Adoption Certified by Council Secretary
By:
Approved b�r: � . Date /
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Form Appr ved by City Attorney
By: ;�
Approved by Mayor for Submission to
Council A j
By: � U V �-I'"
DEP�RiMENTIOFFICECOUNCIL
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CONTACf ERSON 8 PHONE
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T RE PAGES
GREEN SHEET
CRYATTORNEY �'
BUDGET DIRECTOR
MAVOR (OR ASSISTANn
(CLIP ALL LOCATIONS FOR SIGNATUR�
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Approva (A) m Raject (R)
_ PLANNING CAMMISSIQN _ CIVIL SERVICE COMMISSION
_ CIB CAMM7TTEE _
_ SSAFf _
_ DISTRICTCOURT _
SUPPORTS WHICH COUNCIL O&IECTIVE�
PERSONAL SERVICE CONTRACTS MUST ANSWER THE F04LOWING QUESTIONS:
7. Has this personRirm ever worked under a contract for this tlepartment?
YES NO
2. Has this pereonRirm ever been a city employeel
YES NO
3. Does this persoMirm possess a skill not normalry possessetl by eny current city employee?
YES NO
Esplain all yes answers on separate sheet and attech to green sheet
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fF NOT APPflOVED'
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70TAL AMOUNT OF TRANSACTION $
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_ COST/REVENUE BUDGETED (CIqCLE ONE) YES NO
FUNDIfdG SOURCE
FlNANCIAL INFORFnAT10N (E%PLAIN)