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HomeMy WebLinkAbout01-119 RESOLUTION 01-119 A RESOLUTION APPROVING IN CONCEPT THE USE OF TAX INCREMENT FINANCING TO FUND A SENIOR CITIZEN HOUSING PROJECT Motion By: ERICSON Second By: ZIESKA RECITALS WHEREAS, the City desires to provide senior housing which offers reduced rents for persons meeting federal income guidelines; and WHEREAS, the City has been approached by Mr. Harold Jesh representing Mesrs. Larry Gensmer and John Messenbrink d/b/a Eagle Creek Development LLC with a project to construct 54 rental senior housing units, 20% of which will be available to persons earning 50% or less of the median income (hereinafter "Project"); and WHEREAS, the aforementioned Project is known as CREEKSIDE ESTATES; 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 development of financially assisted senior housing, 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 collect 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 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. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 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 Creekside Estates. 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 Iegal, 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 final PUD plan for Creekside Estates. The City Council shall be the final arbiter of whether the Project, as designed, is compatibJe with the approved PUD 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 itsetf. 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. The staff and Ehlers and Associates are hereby directed to complete the financial analysis for this project, prepare the Tax Increment Financing Plan, notify the County and School District pursuant to statute and request that the City Council schedule a public hearing to consider this Tax Increment Financing request. 10. In the event the Developer chooses to proceed with any aspect of construction prior to consideration by the City Council of a tax increment financing plan, the Developer would be proceeding entirely at its sole financial risk. 11. Notwithstanding Paragraphs 1 through 10 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 15TM DAY OF OCTOBER, 2001. YES NO Mader X Mader Ericson X Ericson Gundlach X Gundlach ,¢ Petersen X Petersen,~.,~~~ Zieska X Zieska"~('~// R:\RESOLUTI~ADMIN RESt2001\01-119.DOC Fra n~l'~s, pity Manager