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Resolution Approving the Establishment of a Tax Increment Financing District and Approving an Amended and Restated Tax Increment Plan and Approving an HRA Budget Amendment (Penfield Redevelopment Project)
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WHEREAS the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“Authority”) 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 of 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 within the Project Area; and
WHEREAS, the City Council of the City of Saint Paul, Minnesota (the “City”), on June 21, 2006, and the HRA, on June 28, 2006, approved the creation of a redevelopment tax increment financing district and adopted a tax increment financing plan therefor but the HRA did not file a request for certification of the original net tax capacity of such redevelopment tax increment financing district and the redevelopment project has changed substantially since such tax increment financing plan was adopted; and
WHEREAS, it has been proposed that, within the Redevelopment Project Area, the Authority create the Penfield Tax Increment Financing District (the “Tax Increment District”), as a redevelopment tax increment financing district, and adopt an Amended and Restated Tax Increment Financing Plan (Penfield Redevelopment Project) (the “Tax Increment Financing Plan”) therefor, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1799 (the “Tax Increment Act”); and
WHEREAS, the Authority has investigated the facts and has caused to be prepared the Tax Increment Financing Plan for the Tax Increment District; and
WHEREAS, the Authority has performed all actions required by law to be performed prior to the creation of the Tax Increment District and adoption of a Tax Increment Financing Plan therefor, including, but not limited to, notification of the Ramsey County Commissioner representing the area of the County in which the Tax Increment District is located and transmitting 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; and
WHEREAS, the City Council has heretofore held public hearings on the adoption of the Tax Increment Financing Plan and the Redevelopment Plan and the establishment of the Tax Increment District and the Redevelopment Project and made the findings required by the Tax Increment Act and the HRA Act and approved the establishment of the Redevelopment Project and Tax Increment District and the adoption of the Redevelopment Plan and Tax Increment Financing Plan;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Authority, as follows:
Section 1. Findings for the Creation of Tax Increment District and Adoption of a Tax Increment Financing Plan therefor.
The Board of Commissioners hereby finds that the creation of the Tax Increment District and the adoption of the Tax Increment Plan therefor are intended and, in the judgment of the Board of Commissioners, the effect will be, to carry out the objectives of the Redevelopment Plan by creating an impetus for the redevelopment of blighted structures and the development of rental housing facilities in the City, including commercial space and related structured parking, and to otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment Financing Plan.
Section 2. Creation of Tax Increment District and Approval of the Tax Increment Financing Plan Therefor; Other Authorizations.
2.01 The creation of the Tax Increment District and the adoption of the Tax Increment Financing Plan therefor, are hereby approved and the Tax Increment Financing Plan shall be placed on file in the office of the Executive Director of the Authority.
2.02 The Authority’s Executive Director and staff of the Authority and the Authority’s advisors and legal counsel are authorized and directed to proceed with the establishment of the Tax Increment District and implementation of the Tax Increment Financing Plan therefor and this Resolution. The Authority’s Executive Director and Director, Office of Financial Services are authorized and directed to negotiate and execute all documents, notes and contracts necessary to accomplish these actions.
2.03 The staff of the Authority is hereby directed to file a copy of the Tax Increment Financing Plan with the County Auditor of Ramsey County and to request the County Auditor to certify the original tax capacity of the Tax Increment District. The proposed site of the project is currently exempt from property taxes and the HRA expects to make improvements while the property is tax exempt but the HRA expects that the property will ultimately become taxable. In accordance with Minnesota Statutes, Section 469.177, Subdivision 1(c), staff is directed to request that the County Assessor separately assess the estimated market value of the improvements made to the tax exempt property after the date hereof and before the parcel becomes taxable. Such separately assessed improvements will be excluded from the original net tax capacity of the Tax Increment District.
2.04 The staff of the Authority is also directed to file a copy of the Tax Increment Financing Plan and Redevelopment Plan with the Commissioner of Revenue within 60 days after the latest of: (a) the filing of the request with the County Auditor to certify the Tax Increment District and (b) the date of approval of the Tax Increment Financing Plan by the City and the Authority.
Section 3. Approval and Adoption of Policy on Interfund Loans and Advances. The Authority hereby approves a policy on interfund loans or advances (“Loans”) for the Tax Increment District, as follows:
3.01 The authorized tax increment eligible costs (including without limitation out-of-pocket administrative expenses) payable from the Tax Increment District, as its Tax Increment Financing Plan is originally adopted or may be amended, may need to be financed on a short-term and/or long-term basis via one or more Loans, as may be determined by the Executive Director from time to time.
3.02 The Loans may be advanced if and as needed from available monies in any fund or account of the Authority designated by the Executive Director. Loans may be structured as draw-down or “line of credit” obligations of the lending fund(s).
3.03 Neither the maximum principal amount of any one Loan nor the aggregate principal amount of all Loans may exceed the adopted and, if applicable, amended Tax Increment Financing Plan budget for the Tax Increment District.
3.04 The maximum term of any Loan shall not exceed the lesser of the statutory duration limit of the Tax Increment District or such earlier date as the Executive Director may specify in writing. All Loans may be pre-paid, in whole or in part, whether from tax increment revenue, TIF bond proceeds or other eligible sources.
3.05 The outstanding and unpaid principal amount of each Loan shall bear interest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178, Subdivision 7), which is the greater of the rates specified under Sections 270.75 or 549.09 at the time a Loan, or any part of it, is first made, subject to the right of the Executive Director to specify a lower rate.
3.06 Such Loans within the above guidelines are pre-approved. The Loans need not take any particular form and may be undocumented, except that the Executive Director shall maintain all necessary or applicable data on the Loans.
Section 4. Approving an HRA Budget Amendment. The Authority hereby approves the HRA budget as set forth in Attachment A.