Title
Resolution Approving the Establishment of the Schmidt Brewery Redevelopment Project Area and the Schmidt Brewery Tax Increment Financing District and the Adoption of a Redevelopment Plan and Tax Increment Financing Plan, District 9
Body
WHEREAS, there has been submitted to and considered at this meeting of the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota ("Authority") a Redevelopment Plan (the "Redevelopment Plan") for the Schmidt Brewery Redevelopment Project Area (the "Redevelopment Project Area"); and
WHEREAS, the proposed Redevelopment Plan identifies conditions existing in the proposed Redevelopment Project Area, contains a statement of purpose and objectives, land uses and standards for development for carrying out a redevelopment project, and lists the redevelopment activities and techniques to be employed in carrying out these objectives, including provision for the elimination of conditions of blight and deterioration existing in identified neighborhood areas by private development and construction or rehabilitation of real property for housing with provision of off-street parking, new streets or other public improvements serving such areas; and
WHEREAS, the Saint Paul Planning Commission has reviewed the Redevelopment Plan for the Redevelopment Project Area and approved the same as being in the conformity with the Saint Paul Comprehensive Plan, the general plan for the development and redevelopment of the City as a whole; and
WHEREAS, the Redevelopment Plan will assist in the redevelopment of blighted, substandard and deteriorated or deteriorating areas as new low and moderate income housing resulting in the revitalization of neighborhood areas, will assist in the provision of off-street parking facilities to alleviate conditions of traffic congestion, street parking proliferation and air pollution, will preserve and enhance the tax base available to finance municipal services, and will provide housing and commercial opportunities, thereby achieving the purposes and objectives of Minnesota Statutes, Section 469.001 to 460.047 (the "HRA Act"); and
WHEREAS, it has been proposed that, within the Redevelopment Project Area, the Authority create the Schmidt Brewery Tax Increment Financing District (the "Tax Increment District"), as a housing tax increment financing district, and adopt a Tax Increment Financing Plan therefor (the "Tax Increment Financing Plan"), 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 a 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
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 and Approval of Redevelopment Project Area and Redevelopment Plan.
1.01 It is hereby found and determined that the undertakings and the site of the Redevelopment Project Area constitute a "redevelopment project" within the meaning of Minnesota Statutes, Section 469.002 Subdivision 14; that the land in the Redevelopment Project Area would not be made available for, nor would redevelopment be financially feasible without the public financial assistance proposed for the development; that the Redevelopment Plan will afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment of the Redevelopment Project Area by private enterprise; and that the Redevelopment Plan conforms to the Saint Paul Comprehensive Plan, and the general plan for the development of the City as a whole.
1.02 The Redevelopment Plan and the redevelopment project activities thereby proposed are hereby adopted and approved as necessities and in the public interest by removing conditions of blight and deterioration by preventing the spread of deteriorating conditions through redevelopment of cleared or renovated property, by preserving and enhancing the municipal tax base, by providing low and moderate income housing opportunities, and by providing necessary public improvements, serving the public safety, health, morals and general welfare of the residents of this City and State, by promoting the sound growth and development of neighborhoods and communities.
1.03 The Redevelopment Project Area is hereby established and the Redevelopment Plan is hereby adopted and approved by the Authority.
Section 2. Findings for the Creation of the Schmidt Brewery Tax Increment Financing 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 Financing 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 in the City, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Tax Increment Financing Plan.
Section 3. Creation of the Schmidt Brewery Tax Increment Financing District and Approval of the Tax Increment Financing Plan.
3.01 The creation of the Schmidt Brewery Tax Increment Financing 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.
3.02 The staff of the Authority and the Authority's advisors and legal counsel are authorized and directed to proceed with the creation of the Tax Increment District and implementation of the Schmidt Brewery Tax Increment Financing Plan therefor and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose.
3.03 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.
3.04 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 4. 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:
4.01 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.
4.02 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).
4.03 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.
4.04 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.
4.05 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.
4.06 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 5. Approving an HRA Budget Amendment. The Authority hereby approves the HRA budget as set forth in Attachment A.