8.1 SR 05-17-2021 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA RESOLUTION NO. __________ RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A TIF ASSISTANCE AGREEMENT AND RELATED DOCUMENTS BE IT RESOLVED by the City Council (the “City Council”) of the City of Elk River, Minnesota (the “City”), as follows: Section 1. Recitals. 1.01. The City has undertaken a program to promote economic development and job opportunities and promote the development and redevelopment of land which is underutilized within the City; 1.02. The City has previously established Development District No. 1 (the “Development District”) and adopted a Development Program therefor (the “Development Program”). The City has also established Tax Increment Financing (Redevelopment) District No. 27 (Delta Apartments Project) (the “TIF District”) within the Development District, and adopted a Tax Increment Financing Plan therefor (the “TIF Plan”); 1.03. The City proposes to enter into a TIF Assistance Agreement (the “Assistance Agreement”) with Stonewood Development LLC (or an affiliated entity, the “Developer”) in connection with the acquisition, construction and equipping by the Developer of an approximately 90-unit multifamily rental housing facility in two phases (the “Development”); 1.04. The Assistance Agreement has been prepared and presented to the City Council for its consideration, stating the terms and conditions described therein and the City’s assistance with the financing of certain costs of the Development; 1.05. The City has adopted a Tax Increment Financing Policy (the “Policy”) which limits the term of tax increment financing assistance for redevelopment tax increment financing districts for a period of 15 years; and 1.06. The Assistance Agreement deviates from the Policy by providing tax increment assistance to the Developer over a period of 20 years for each phase of the Development. Section 2. Approval of Development Documents. 2.01. The City finds that the Development requires a policy deviation from due to maximum 15 years due to exuberant circumstances that would require 20 years of assistance including, but not limited to, the following: (a) the Development site contains a blighted building and has long been vacant; (b) the removal of the blighted building and its redevelopment achieves of the goal of redeveloping a site that is an important gateway into the City; and (c) the City commissioned a Comprehensive Housing Market Study Update in 2018 which showed demand for additional market rate housing units.