HomeMy WebLinkAbout01-24 RESOLUTION 01-24
A RESOLUTION APPROVING IN CONCEPT THE USE
OF TAX INCREMENT FINANCING TO FUND A SENIOR CITIZEN
HOUSING PROJECT AS PART OF THE
DOWNTOWN REDEVELOPMENT EFFORT
Motion By: ERICSON Second By: ZIESKA
RECITALS
WHEREAS, the City has undertaken a comprehensive study of the downtown area of the City of Prior
Lake ("City"); and
WHEREAS, pursuant to this study the City has developed and adopted a Downtown Redevelopment
Guide; and
WHEREAS, qualified senior housing is an integral part of the City's vision for the redevelopment of its
downtown; and
WHEREAS, the City has been approached by Messrs. Randy Simpson and Ken Beske (collectively
"Developer") with a project to construct 78 market-rate owner-occupied senior housing units
and 12,000 square feet of retail space (hereinafter "Project"); and
WHEREAS, the aforementioned Project is known as LAKEFRONT PLAZA; and
WHEREAS, the Developer maintains that the Project is not economically viable without the assistance of
public financing; and
WHEREAS, to encourage and facilitate the redevelopment of downtown the City is eager to work with
responsible developers on qualifying projects; and
WHEREAS, where appropriate and permissible the City is prepared to use available tax increment
financing tools, as provided by Minnesota statutes to facilitate development of qualifying
projects; and
WHEREAS, the City and Developer understand that the City's ability to establish a tax increment
financing district, the ability to collet tax increments and the operation of the property tax
system are controlled by the State Legislature and that the use and/or availability of tax
increment financing is subject to changes by the State Legislature during the 2001
legislative session, which changes are beyond the power or purview of the City Council;
and
WHEREAS, the Developer agrees to bear all risks associated with legislative changes or resulting from
statutory requirements which the Developer is unable to meet; and
WHEREAS, both the City and Developer understand that both time and costs are associated with the
preparation and evaluation of plans and related documents necessary to develop and
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
analyze the proposed Project and determine whether the Project meets the statutory
requirements and City criteria for the issuance of tax increment financing; and
WHEREAS, both the City and Developer wish to avoid the unnecessary expenditure of time and money
on projects that are not of interest to the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that:
1. The Recitals set forth above are incorporated herein as if fully set forth.
2. The Developer is encouraged to submit to the City an application for Tax Increment Financing for the
Project referred to as Lakefront Plaza. Along with the application the Developer will deposit with the
City the amount of $12,000 which monies will be used by the City solely to pay for legal, financial and
staff costs associated with the analysis, review and facilitation of the Project.
3. The Developer will design the Project to be compatible with the City's Downtown Redevelopment
Plan. The City Council shall be the final arbiter of whether the Project, as designed, is compatible
with the City's Downtown Redevelopment Plan. The Project shall also be designed to comply with all
applicable zoning, subdivision and other land use regulations of the City and other governmental
entities having jurisdiction.
4. The Developer will provide the City with a plan for financing the Project which includes a minimum
equity contribution by the Developer of 25% of the total Project costs.
5. The Developer must demonstrate to the City that it has the capacity to successfully complete the
Project and that the City's financial assistance is necessary for the proposed Project to occur.
6. All determinations regarding the suitability of the site for the proposed Project are the sole
responsibility of the Developer to determine for itself. The City makes no representations or
warranties that the site under consideration by the Developer is suitable or will sustain the proposed
Project.
7. The City will analyze the documents, plans, materials and data supplied by the Developer (the
"Application") and determine if the Project qualifies for TIF.
8. If the Project meets all the criteria discussed herein the City will negotiate a tax Increment Financing
Agreement with the Developer. The City Council will act reasonably in determining whether the
Project meets applicable criteria, including but not limited to financing, TIF statutory requirements
and zoning requirements.
9. Notwithstanding Paragraphs 1 through 8 above, nothing in this Resolution is intended to bind the
Council to provide the Developer with tax increment financing. This Resolution is intended to
demonstrate the City's interest in moving forward with the Developer.
PASSED AND ADOPTED THIS 27TH DAY OF FEBRUARY, 2001.
YES NO
Mader X Mader
Ericson X Ericson
Gundlach X Gundlach
P etersen X Petersen
Zieska X Zieska
~ing City~anager, City of Prior Lake
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