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Resolution Approving the Establishment of a Tax Increment Financing District and Approving a Tax Increment Plan and Approving an HRA Budget Amendment and Approving a Development Agreement (Pioneer Endicott Redevelopment Project), District 17, Ward 2
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1.01 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 therefore (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, it has been proposed that, within the Redevelopment Project Area, the Authority create the Pioneer Endicott 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 (Pioneer Endicott Redevelopment Project) (the "Tax Increment Financing Plan") therefore, 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 therefore, 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; and
WHEREAS, the Authority desires to enter into a development agreement with RCTG Development LLC or its assigns ("Developer") whereby the Authority will issue a tax increment note to the Developer for payment of certain eligible costs from tax increment related to the Project ("Development Agreement");
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 therefore.
The Board of Commissioners hereby finds that the creation of the Tax Increment District and the adoption of the Tax Increment Plan therefore 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 to otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment Financing Plan. The Board of Commissioners further finds in its opinion that the proposed development by the Developer would not occur solely through private investment within the reasonably foreseeable future and therefore the use of tax increment financing is deemed necessary because the property on which the proposed development will occur has not been developed or occupied for several years.
Section 2. Creation of Tax Increment District and Approval of the Tax Increment Financing Plan Therefore; Other Authorizations.
2.01 The creation of the Tax Increment District and the adoption of the Tax Increment Financing Plan therefore, 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 therefore 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.
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.
Section 5. Approving Development Agreement.
5.01 The Authority hereby approves the Development Agreement in substantially the form submitted, and the Authority Chair or Commissioner, Authority Executive Director, and Director, Office of Financial Services, are hereby authorized and directed to execute the Development Agreement on behalf of the Authority.
5.02 The Executive Director of the Authority is hereby authorized to negotiate and agree to amendments or revisions to the Development Agreement which do not substantially change the rights or obligations of the Authority and are approved by the City Attorney.
5.03 The Executive Director, staff and legal counsel of the Authority are directed and authorized to take all actions necessary to implement this Resolution and the Executive Director is authorized to execute any further documents and instruments in connection therewith.