RES 20-35of
City of Elk River
ver City Council
Resolution 20- 35
A Resolution of the City Council of the City of Elk River finding parcel is
occupied by structurally substandard buildings.
WHEREAS, it has been proposed that the City of Elk River, Minnesota, (the "City") or
the Housing and Redevelopment Authority in and for the City of Elk River, Minnesota (the
"HRA"), create one or more tax increment financing districts within the City to be
designated as redevelopment districts or renewal and renovation districts as defined in
Minnesota Statutes, Section 469.174, Subd. 10 and Subd. 10a (the "TIF District"); and
WHEREAS, in order to create this type of TIF District, the City and the HRA must make
a determination that before the demolition or removal of any substandard building, certain
conditions existed; and
WHEREAS, under Minnesota Statutes, Section 469.174, subd. 10(d), the City and the
HRA are 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, in order to deem a parcel as being occupied by a structurally substandard
building, the City or the HRA must first pass a resolution before the demolition or removal
that the parcel was occupied by one or more structurally substandard buildings and that after
demolition and clearance the City or the HRA intended to include the parcel within the
proposed tax increment financing district; and
WHEREAS, on October 7`'', 2019, the Board of Commissioners of the HRA and the City
Council of the City adopted resolutions designating certain buildings within the City as
substandard prior to being demolished or removed in anticipation of creating a future
redevelopment or renewal and renovation tax increment financing district based on the "TIF
Analysis Findings for 326 Gates Ave NW, 414, 426 and 430 Main Street NW", dated
September 6, 2019 completed by LHB, Inc. ("LHB"); and
WHEREAS, subsequently LHB amended its report to include additional parcels; and
WHEREAS, there exists in the City on the additional parcel described in Exhibit A
attached hereto (the "Parcel") one structurally substandard building to be demolished or
removed (the "Substandard Building Condition"); and
WHEREAS, a parcel is deemed to be occupied by a structurally substandard building if
the Substandard Building Condition is met within three years of the filing of the request for
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certification of the parcel as part of the tax increment financing district with the county
auditor, and if certain other conditions are met; and
WHEREAS, the HRA intends to cause demolition of buildings located on the Parcel, and
the City or the HRA may in the future include the Parcel in a redevelopment or renewal and
renovation tax increment financing district; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows:
1. The Council has received from LHB the "Report of Inspection Procedures
and Results for Determining Qualifications of a Tax Increment Financing Redevelopment
District Main and Gates Redevelopment TIF District, Elk River, Minnesota", dated June 1,
2020 (the "Inspection Report"), finding that, based on an inspection of the buildings located
on the Parcel, 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 Board, the Board
finds that the buildings on the Parcel are structurally substandard to a degree requiring
substantial renovation or clearance and at least 15% of the area of the Parcel identified on
Exhibit A attached hereto are occupied within the meaning of Minnesota Statutes, Section
469.174, Subd. 10.
2. After the date of approval of this resolution, the buildings on the Parcel may
be demolished or removed by the City or the HRA, or such demolition or removal may be
financed by the City and the HRA, or may be undertaken by a developer under a
development agreement with the City or the HRA.
3. The City and the HRA intend to include the Parcel in a TIF District, and to
file the request for certification of such district with the Sherburne County auditor within 3
years after the date of demolition of the buildings on the Parcel.
4. Upon filing the request for certification of a new tax increment financing
district, the City or the HRA will notify the Sherburne County auditor that the original tax
capacity of the Parcel 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 and HRA staff and consultants are authorized to take any actions
necessary to carry out the intent of this resolution.
6. 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.
7. On April 6, 2020, the Council and the Board of Commissioners of the HRA
adopted amended interfund loan resolutions (collectively, the "Interfund Loan Resolution")
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authorizing the payment of certain costs by the HRA and the City, including the costs of
demolition of the buildings on the Parcel, in an amount not to exceed the greater of
$1,300,000 or the adopted and, if applicable, amended Tax Increment Financing Plan budget
for the TIF District pursuant to Minnesota Statutes, Section 469.178, Subd. 7. Payments of
principal of and interest on the Interfund Loan (as defined in the Interfund Loan
Resolution) shall be paid from Available Tax increment (as defined in the Interfund Loan
Resolution). This resolution supplements, but does not supersede, the Interfund Loan
Resolution.
Passed and adopted this 6t' day of July 2020.
ATTEST:
Tina Allard, City Clerk
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P 09 E R E 1 l i
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EXHIBIT A
PARCEL IDENTIFICATION NUMBERS
75-401-0150 — 406 Main Street
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