RES 17-35City of Elk River, Minnesota
City Council
Resolution 17 - -iq
A Resolution of the City Council of the City of Elk River Designating Certain
Buildings within Development District No. I as Structurally Substandard
WHEREAS, under Minnesota Statutes, Section 469.174, subd. 10(d), the City of Elk River,
Minnesota (the "City") is authorized to deem parcels as occupied by structurally substandard
buildings despite prior demolition or removal of the buildings, subject to certain terms and
conditions as described in this resolution; and
WHEREAS, the City intends to cause demolition of buildings located on the property
located in the City identified in Exhibit A (collectively, the "Designated Property"), and may in the
future include the Designated Property in a redevelopment or renewal and renovation tax increment
financing district as defined in Minnesota Statutes, Sections 469.174, Subd. 10 and Subd. 10a,
respectively.
BE IT RESOLVED by the City Council of the City of Elk River, Minnesota (the
"Council"), as follows:
1. The Council has received from LHB, Inc. the "TIF District #24 Elk River, Minnesota
Property Condition Assessment Summary Sheet", for inspections on May 5 and May 16, 2017 (the
"Inspection Report"), finding that, based on an inspection of the buildings located on the
Designated Property, such buildings were determined to be substandard under the definition set
forth in the Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"). Based
on the Inspection Report and other information available to the Council, the Council finds that the
buildings on the Designated Property are structurally substandard to a degree requiring substantial
renovation or clearance.
2. After the date of approval of this resolution, the buildings on the Designated Property
may be demolished or removed by the City, or such demolition or removal may be financed by the
City, or may be undertaken by a developer under a development agreement with the City.
3. The City intends to include Designated Property in one or more redevelopment or
renewal and renovation tax increment financing districts pursuant to the TIF Act (the "TIF
District"), and to file the request for certification of such district with the Stearns County auditor
within 3 years after the date of building demolition on the Designated Property.
4. Upon filing the request for certification of a new tax increment financing district, the City
will notify the Stearns County auditor that the original tax capacity of the Designated Property must
be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the estimated
market value of the parcel for the year in which the building was demolished or removed, but
applying class rates for the current year, all in accordance with Minnesota Statutes, Section 469.174,
subd. 10(d).
5. City staff and consultants are authorized to take any actions necessary to carry out
the intent of this resolution.
501550v11SB EL185-52
6. The City hereby authorizes City staff and consultants to negotiate the terms of a
development agreement with a developer in connection with the demolition of some or all of the
buildings on the Designated Property (the "Development Agreement") and the Mayor and City
Clerk are authorized to execute the Development Agreement on behalf of the City, and to carry out,
on behalf of the City, the City's obligations thereunder.
7. The City authorizes expenditure of available tax increments and other available funds
to pay the costs of such demolition or removal, in such amounts as determined necessary for such
purpose by the City's Finance Director, in accordance with the City's resolution authorizing
interfund loans to be repaid from the TIF District adopted May 15, 2017.
Approved by the City Council of the City of Elk River this 19th day of June, 2017.
ATTEST:
Tina Allard, City Clerk
501550A ASB EL185-52
EXHIBIT A
Affected Properties
Parcel ID # Address
75-403-0030
706 Quinn Ave NW
75-403-0020
634Quinn Ave NW
75-403-0010
620 Quinn Ave NW
75-410-0745
1234 6th St NW
75-410-0705
1214 6th St NW
75-410-0710
1206 6th St
75-410-0720
623 Proctor Ave NW
75-410-0725
633 Proctor Ave NW
501550v1 JSB ELI 85-52