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Amending the Redevelopment Plan for the Saint Paul Neighborhood Redevelopment Project Area, approving the establishment of the East Seventh Street and Bates Senior Housing Tax Increment Financing District, and approving tax increment financing plan thereof.
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WHEREAS, the City Council of the City of Saint Paul (the "Council") has the statutory responsibility under Minnesota Statutes, Section 469.028, to approve redevelopment plans and projects of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), after public hearing thereon; and
WHEREAS, the HRA has heretofore established the Saint Paul Neighborhood Redevelopment Project area (the "Project Area") and has adopted a redevelopment plan therefor (the "Redevelopment Plan") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended; and
WHEREAS, said Redevelopment Plan contains an identification of need and statement of objectives and program of the HRA for carrying out a redevelopment project, including property to be acquired, public improvements to be provided, development and redevelopment to occur, and sources of revenue to pay redevelopment costs of the Project Area; and
WHEREAS, the HRA has asked the Council to approve the Sixth Amendment of the Redevelopment Plan to enlarge the Project Area pursuant to and in accordance with Minnesota Statutes, Section 469.001 through 469.047 (the "HRA Act"); and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the Sixth Amendment to the Redevelopment Plan, including, but not limited to, consultation with the Planning Commission. The HRA has requested that the City approve the Sixth Amendment to the Redevelopment Plan following the holding of a public hearing upon published and mailed notice as required by law; and
WHEREAS, Minnesota Statutes, Section 469.175 requires that before a county auditor may certify a tax increment financing district created under Minnesota Statutes, Section 469.174 to 469.1794 (the "TIF Act") the governing body of the municipality must approve the tax increment financing plan after a public hearing thereon; and
WHEREAS, the HRA has asked the Council to approve the creation, within the Project Area as amended by the Sixth Amendment of the Redevelopment Plan, of the East 7th and Bates Senior Housing Tax Increment Financing District as a housing tax increment financingdistrict under Minnesota Statutes, Section 469.174, Subdivision 11 (the "TIF District") and the adoption of a Tax Increment Financing Plan therefor (the "TIF Plan"), all pursuant to and in accordance with the TIF Act; and
WHEREAS, the TIF District is being established to facilitate the construction of one, approximately 158,353 gross square foot, five-level building (including underground parking), consisting of approximately 113 units of rental housing for seniors (the "Housing Development"). In addition, a separate building will be constructed in the TIF District to be used as a grocery store with surface parking (the "Commercial Development"); and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the creation of the TIF District and adoption of the TIF Plan therefor, including, but not limited to, notification of the Ramsey County Commissioner representing the area of the County in which the TIF District is located, and delivering a copy of the TIF Plan to Ramsey County and Independent School District Number 625, which have taxing jurisdiction over the property to be included in the TIF District; and
WHEREAS, on this date, the City Council conducted a public hearing on the Sixth Amendment to the Redevelopment Plan and the TIF Plan, after published notice thereof; and
WHEREAS, at said public hearing the City Council heard testimony from all interested parties on the Sixth Amendment to the Redevelopment Plan and the TIF Plan; and
WHEREAS, the City Council has considered the documentation submitted in support of the Sixth Amendment to the Redevelopment Plan, the TIF District, and the TIF Plan and has taken into account the information and knowledge gained in hearings upon and during consideration of other matters relating to the developments proposed within the Project Area.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saint Paul as follows:
Section 1. Findings for the Approval of the Sixth Amendment of the Redevelopment Plan.
1.01 The City Council hereby finds that the Sixth Amendment of the Redevelopment Plan is intended and, in the judgment of the City Council, the effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for redevelopment and housing activities in the City and otherwise promote public purposes and accomplish certain objectives as specified in the Redevelopment Plan.
1.02 The City Council hereby finds that
(a) the land in the Project Area, as amended by the Sixth Amendment of the Redevelopment Plan, would not be made available for redevelopment without the financial aid to be sought;
(b) the Redevelopment Plan, as amended, will afford maximum opportunity, consistent with the needs of the City as a whole, for the redevelopment of the areas by private enterprise; and
(c) the Redevelopment Plan, as amended, conforms to the Saint Paul Comprehensive Plan and the general plan for the development of the City as a whole.
Section 2. Findings for the Creation of the TIF District and Adoption of a TIF Plan Therefor.
2.01 The City Council hereby finds that the creation of the TIF District and adoption of the TIF 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 construction of low and moderate income housing, and will otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan and TIF Plan.
2.02 The City Council hereby finds that the TIF District qualifies as a "housing district" within the meaning of the TIF Act for the following reasons:
The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 11, 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 under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential uses.
The Housing Development to be constructed in the TIF District will consist of approximately 113 units of rental housing for seniors. At least 40% of the units (i.e., 46 units) in the project that receive tax increment financing assistance will be rented to and occupied by individuals or families whose income is 60% or less of area median income. Less than 20% of the square footage of the Housing Development, the only building receiving tax increment assistance, is expected to be used for commercial, retail, or other nonresidential uses. The Commercial Development will not receive assistance from the tax increments.
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 tax increment financing is deemed necessary. The specific basis for such finding being:
The senior housing development will result in the acquisition and construction of an affordable housing development containing one building of 113 total housing units, including underground parking, which construction would not be undertaken in the reasonably foreseeable future. St. Paul Leased Housing Associates VI, LLC (the developer of the senior housing development) has represented that it could not proceed with the Housing Development without tax increment assistance.
(b) The City Council further finds that the TIF 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 TIF Plan will generally complement and serve to implement policies adopted in the City's comprehensive plan. The Housing Development contemplated is or will be in substantial accordance with the existing zoning or any permitted exception for the property.
(c) The City Council further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the TIF District by private enterprise. The specific basis for such finding being:
The proposed Housing Development to occur within the TIF District is primarily low and moderate income housing. The Housing Development will increase the taxable market valuation of the City. The available housing in the City will expand by approximately 113 rental units with the completion of the development contemplated by the TIF Plan.
(d) The City elects to retain all of the captured tax capacity to finance the costs of TIF District. The City elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subd. 3(a).
(e) The City elects to delay the receipt of the first increment until tax payable year 2017.
2.04 The provisions of this Section 2 are hereby incorporated by reference into and made a part of the TIF Plan.
Section 3. Approval of the Sixth Amendment of the Redevelopment Plan, Creation of the TIF District, and Approval of the TIF Plan.
3.01 The Sixth Amendment of the Redevelopment Plan, the creation of the TIF District, and the TIF Plan, are hereby approved.
3.02 The staff of the City, the HRA's Executive Director and the staff of the HRA, and the City's and HRA's advisors and legal counsel are authorized and directed to proceed with the establishment of the TIF District and the implementation of the Sixth Amendment of the Redevelopment Plan, the TIF Plan, and this Resolution. The HRA's Executive Director and Director, Office of Financial Services, are authorized and directed to negotiate, draft, prepare and present to the Board of Commissioners of the HRA for its consideration all further plans, resolutions, documents and contracts necessary for this purpose.