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Resolution (i) Authorizing a HOME Loan, (ii) Approving an HRA Budget Amendment, (iii) Approving the Establishment of the Hamline Station West Tax Increment Financing District and (iv) Adopting a Tax Increment Financing Plan Therefor
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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 Authority 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;
WHEREAS, the Authority has investigated the facts and has caused the Tax Increment Financing Plan (the "Tax Increment Financing Plan") for the Hamline Station West Tax Increment Financing District (the "Tax Increment District") to be prepared; and
WHEREAS, the City Council of the City of Saint Paul, Minnesota (the "City"), on June 5, 2013, held a public hearing, approved the creation of the Tax Increment Financing District, within the Project Area, as a housing tax increment financing district, and adopted the Tax Increment Financing Plan therefor, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794 (the "Tax Increment Act"); 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, Project for Pride in Living, Inc. (as referred to herein, together with any affiliate thereof which owns or develops the Project described below, the "Developer") has represented that it could not proceed with the development of the Project without tax increment assistance; and
WHEREAS, the Developer has also requested the Authority to provide a HOME Loan in the amount of $550,000 to finance a portion of the costs of the Project, as defined below (the "HOME Loan"); and
WHEREAS, for the reasons stated in the Developer's request, the Authority finds cause to waive its policy on the fee for the Developer of the Project; and
WHEREAS, the Developer has also requested the Authority approve and enter into a development agreement with the Developer at a later date; and
BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authority") as follows:
Section 1. Findings for the Creation of Tax Increment Financing District and Adoption of a Tax Increment Financing Plan.
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, its effect will be, to carry out the objectives of the Redevelopment Plan by creating an impetus for the development of low and moderate income housing facilities and related structures in the City, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Tax Increment Financing Plan.
The project to be constructed in the Tax Increment Financing District will consist of approximately 57 units of rental housing (the "Project"). At least 40% of the units (i.e., 23 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. The development consists of one approximately 86,796 gross square foot, five level building (including underground parking) of which the commercial portion will comprise approximately 14,249 gross square feet which is less than one level and not more than 20% of the square footage of the building.
Section 2. Creation of Tax Increment Financing District and Approval of Tax Increment Financing Plan.
2.01 The creation of the Tax Increment Financing District and the adoption of the Tax Increment Financing Plan, 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 implementation of the Tax Increment Financing Plan 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 Countyand to request the County Auditor to certify the original tax capacity of the Tax Increment Financing District.
2.04 The staff of the Authority is also directed to file a copy of the Tax Increment Financing 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. Approval of HOME Loan; Execution of Documents. The Board of Commissioners hereby approves the HOME Loan in connection with the Project. Upon receipt of an executed HOME loan agreement, promissory note, mortgage, declaration and any other documentation required by and subject to the approval of the Saint Paul City Attorney (the "HOME Documents"), the Chair or Commissioner and Executive Director of the Authority and the Director, Office of Financial Services of the City are authorized and directed to execute the HOME Documents, in the name and on behalf of the Authority. Any other Authority documents and certificates necessary to the transaction described above may be executed by one or more appropriate officers of the Authority, including but not limited to the Executive Director. Copies of all of the documents necessary to the transaction herein described shall be delivered, filed and recorded as provided herein and in the HOME Documents.
Section 5. Future Amendments. The authority to approve, execute and deliver future amendments to the HOME Documents entered into by the Authority in connection with the HOME Loan and consents required under the HOME Documents is hereby delegated to the Executive Director and Director, Office of Financial Services, subject to the following conditions: (a) such amendments or consents to not materially adversely affect the interests of the Authority; (b) such amendments or consents do not contravene or violate any policy of the Authority, and (c) such amendments or consents are acceptable in form and substance to the counsel retained by the Authority to review such amendments. The authorization hereby given shall be further construed as authorization for the execution and delivery of such certificates and related items as may be required to demonstrate compliance with the agreements being amended and the terms of this Resolution. The execution of any instrument by the Executive Director and Director, Office of Financial Services shall be conclusive evidence of the approval of such instruments in accordance with the terms hereof. In the absence of the Executive Director or Director, Office of Financial Services, any instrument authorized by this paragraph to be executed and delivered may be executed by the officer of the Authority or the City of Saint Paul authorized to act in their place and stead.
Section 6. Approving an HRA Budget Amendment. The Authority hereby approves the HRA budget as set forth in Attachment A.