RES 21-37CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO.21-37
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.
2.02. The City hereby approves the Assistance Agreement substantially in accordance with
the terms set forth in the forms presented to the City Council, together with any related documents
necessary in connection therewith, including without limitation all documents, exhibits, certifications
or consents referenced in or attached to the Assistance Agreement, including without limitation the
tax increment revenue notes (collectively, the "Development Documents") and hereby authorizes city
staff and the Mayor and City Clerk to negotiate the final terms thereof and, in their discretion and at
such time as they may deem appropriate, to execute the Development Documents on behalf of the
City, and to carry out, on behalf of the City, the City's obligations thereunder when all conditions
precedent thereto have been satisfied.
2.03. The approval hereby given to the Development Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications thereof,
deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal
counsel to the City and by the officers authorized herein to execute said documents prior to their
execution; and said officers are hereby authorized to approve said changes on behalf of the City. The
execution of any instrument by the appropriate officers of the City herein authorized shall be
conclusive evidence of the approval of such document in accordance with the terms hereof. This
Resolution shall not constitute an offer and the Development Documents shall not be effective until
the date of execution thereof as provided herein.
2.04. In the event of absence or disability of the officers, any of the documents authorized
by this Resolution to be executed may be executed without further act or authorization of the City
Council by any duly designated acting official, or by such other officer or officers of the City Council
as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the
Development Documents, the officers and employees of the City are hereby authorized and directed
to take or cause to be taken such actions as may be necessary on behalf of the City to implement the
Development Documents when all conditions precedent thereto have been satisfied.
2.05. The City Council hereby determines that the execution and performance of the
Development Documents will help realize the public purposes of state laws, including Minnesota
Statutes, Sections 469.124 through 469.133 and Sections 469.174 through 469.1794, the
Development Program, and the TIF Plan.
Approved by the City Council of the City of Elk River this 17th day of May, 2021.
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