City Council Resolution 03-22-2021CERTIFICATION
STATE OF MINNESOTA
COUNTY OF CARVER
I, Kim Meuwissen, Deputy Clerk of the City of Chanhassen, Minnesota, do hereby
certify that I have compared the foregoing copy of Resolution No' 2021-ll "Adopting A
Modification To The Development Plan For The Downtown Chanhassen
Redevelopment Project Area And Approving A Tax Increment Financing Plan For
Tax Increment Financing District No. 12." adopted by the Chanhassen City Council on
March 22,2021 with the original copy now on file in my office and have found the same to
be a true and correct copy thereof.
Witness my hand and official seal at Chanhassen, Minnesota, this 29fi day
of March, 2021.
wlssen.Clerk
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MI}i:{ESOTA
MOTION:Cem
RESOLUTION ADOPTING .4, MODIFICATION TO THE DEVELOPMENT PLAN
FOR THE DOWNTOWN CH.{NHASSEN REDEVELOPME:{T PROJECT AREA
AND APPROVING A TAX INCRE}TENT FINANCING PLA}i FOR TAX
INCREMENT FINAT.CING DISTRICT \.O. t2
BE IT RESOLVED b-r the Citl'Council (the "Council") of the Citl'of Chanhassen.
Minnesota (lhe "City''). as follous:
Section l. Recitals
1.01. The Board of Commissioners ofthe Chanhassen Economic Development Authoritl
(rhe -EDA") has hererofore established the Dounlo*n Chanhassen Redevelopment Project Area
(the -Project Area") and adopted the Reder elopment Plan therefor. It has been proposed b1 the EDA
that the Ciq' approve and rhe EDA adopt a Modification to the Redevelopment Plan for the Project
Area (the "Redevelopment Plan Modification") and a Tar lncrement Financing Plan (the "TlF
Plan") for the esrablishmenr ofTax lncrement Financing District No. ll (the -District") lherein (the
Redevelopment Plan Modilication and the TIF Plan are referred to collectivell herein as the
"Plans"): all pursuant to and in conformitl'uith applicable lau. including Minnesota Statutes.
Sections 469.090 ro,t69.l08l and Sections .169.17.1 to'169.179{. all inclusire. as amended. (the
"Act") all as reflected in the Plans. and presented for the Council's consideration.
1.02. The EDA and City har e investigated the facts relating to the Plans and have caused
the Plans to be prepared.
1.03. The EDA and Cirl'have performed all actions required b1'lau'to be pertbrmed prior
to the esublishmenr ofthe District and the adoplion and approval ofthe proposed Plans. including.
but not limited lo. nodficalion ofCaner Countl and Independent School District No. I l2 har ing
taxing jurisdiction over the propert!'to be included in the District. a revieu ofand nrinen comment
on rhe Plans by rhe CiR' Planning Commission. adoption of the Plans b1 the EDA on March 8.
2021. and rhe holding ofa public hearing upon published notice as required b1' lau.
I .04. Cenain *ritten repons lthe " Repons") relating lo the Plans and lhe activities
contemplated therein have heretofore been prepared b1'staffand consuhants and submitted to the
Council and/or made a part ofthe Citl files and proceedings on the Plans. The Reporrs include data.
information and/or substantiation constituling or relating to the basis tbr the other lindings and
determinations made in this resolution. The Council herebl'confirms. ratifies and adopts the
Reports, u'hich are herebf incorporated into and made as fulll a pan of this rcsolution to the same
extenl as ifset fonh in full herein.
DATE:@RESOLUTION:@
SECONDED B\': Rehm
3.01 . The Council herebl' finds that the District is in the public interest and is a "housing
district" under Minnesota Slatutes. Section 469.174. SuM. I I of the Acr.
3.02. The Council further finds that the proposed redel elopment would not occur solely
through private investment r,r'ithin the reasonabl) foreseeable future. that the TIF Plan conforms to
the gJneial plan for the development or redevelopment ofthe Cit-y as a u'hole: and that the-TlF Plan
r,riliafford maximum opportunig consistent uilh the sound needs of the City as a whole' for the
development or redevelopment ofthe District by private enterpris€'
3.03. The Council funher finds. declares and determines that the Ciq' made the above
findings stated in this Section and has set fonh the reasons and supporting facts for each
determination in *riting. anached hereto as Exhibit A.
3.04. The EDA elects to calculale hscal disparities for the District in accordance utth
Minnesota Sratutes. Section 469.177. Subd. 3. clause b. which means an1'fiscal disparities
contribution uould be taken from inside the Disrrict.
Section 4. Public
4.01. The appror.al ofthe Plans conforms in all respects to the requirements ofthe Act and
},ill help fulfill a need to develop an area ofthe City shich is alreadl built up. to provide housing
opportunities. to improve the ta.r base and to improve the general economy ofthe State and therebl'
serr es a public purpose. For the reasons described in Exhibit A. the Cig' believes these benefis
directty derile irom rhe tar increment assistance provided under the TIF Plan. A private developer
will receiye onl.v the assistance needed to make this development financialll feasible. As such. an-v
private benefirs received b1 a developer are incidental and do not outu'eigh the primary public
benefirc.
Section 5. ADpro val and Adootion of the Plans
5.01 . The Plans. as presenred to rhe Council on this date. including without limitation the
frndings and statemenrs of objectives contained therein. are herebrv approved. ratified. established.
and adopted and shall be placed on file in the office of the CommuniS' Development Dir€ctor.
l .O5 The Citl is not modifying the boundaries of the Project Area but is. however'
modi$'ing the Redevelopment Plan to include activities related to the Disrict.
Section 2. Findinqs for the Adootion and Aooroval ofthe Plans'
2.01 . The council hereby finds thar the Plans are intended and- in the judgment of this
Council. the effect ofsuch actions will be. to provide an impetus for development in the public
interest and accomplish cenain objectives as specified in the Plans. which are hereby incorporated
herein.
Section 3. Findines for the Establisbment of the District
ATTEST:
Lawie Hoklianen. Citl' I\lanager tsc R1an. Mayor
YES
5.02. The staff of the City. the City's advisors and legal counsel ate authorized and directed
to proceed uith the implementation ofthe Plans and to negotiate. draft. prepare and present to this
Council for its consideration all further plans. resolutions. documents and conlracts necessary for
this purpose.
5.03 The Auditor of Carver County is requested to cenify the original net tax capacity of
the District. as described in the Plans. and to certili' in each 1'ear thereafter lhe amount by which the
original net tax capaciry has increased or decreased: and the EDA is authorized and directed to
forth*ith ransmit this requesr ro the Countl' Auditor in such form and contenl as the Auditor ma-v
specifu, together uith a lisr of all prcp€nies \ ithin the District, for which building permits have been
issued during the I 8 months immediatell preceding the adoption of this resolution.
5.M. The EDA Executive Director is further authorized and directed to file a cop;- of the
Plans u'ith the Commissioner of the Minnesota Depanment of Revenue and the Oflice of the State
Auditor pursuant to Minnesota Statutes .169.1 75. SuM. 4a.
Passed and adopted b1' the Chanhassen Citl' Council rhis 22d da) of March. 2021 .
R]'an
Campion
McDonald
Rehm
Schuben
\o ABSETT
EXHIBIT A
RESOLT'TIOI'i NO. 2021-l I
The reasons and facts supportinB the findings tbr the approval of the Tax Incremenl Financing
plan (TlF Plan) lbr Tax lncremenr Financing District No. 12. as required pursuant to Minnesota
Statutes. Section -169.175. SuMir ision 3 are as lbllous:
l. Finding that Tux Incremenr Financing District itio. 12 is o housing distict as detined in
M.5.. Secrion J69. 111, Subd. I l.
Cl{lii 6: :U8-r lH \:
A-l
Tar Increment Financing District No. 12 consists ofone (l) parcel and its intemal and adjacent
rights-of-way. The development uill consist of a ne$ l lGunit mixed-income senior housing
apartment faciliry in the citl'. all or a ponion of which will receive ta\ increment assisEnce and
x-ill meet income reslriclions described in M.S..169.1761. At least 40 percent ofthe unils reteiving
assistance r,rill hare incomes at or below 60 percent of area median income.
2. Finding that the proposed detelopment. in the opinion of the CiD' Council. t'ould not
reasonoh\' he expectel to occur solell through private inteslment vithin the reusonobl]'
.for e s e e u b I e .litt ur e.
This finding is supported by the lhct that the development pmposed in this plan is a housing district
that meets lhe Cit!.'s objectives for development and redevelopment and is intended for occupancy.
in paA. b1. lou and moderate-income persons. Al least 4fflo of the assisted housing units are
intended to be income restricted. Due to decreased rental income from affordable units. lhere is
insuflicient cash flou to prolide a sutlicient rate of retum. pa) operaling expenses and sen'ice lhe
debt necessaq.to develop the housing. This lear,es a gap in the funding for the projecr and makes
this housing development feasible onll through assistance. in pan. from tar incremenl financing.
The necessitl of public assistance is true for most affordable housing developme in Minnesota.
The der.eloper uas asked lbr and provided a letter and a proforma outlining project source and
uses as well as projected rcnt. !'acanc) and financing assumptions. Ciq' staff and the City's
adyisors revier,red rhe inlbrmation and have determined the project is not feasible ruithout the
proposed assistance due anticipated rent levels and market retums not supporting rhe development
cosls for the site. Based on the revie'\,r. the Citl does not expecl that a development ofthis type
*'ould occur in the reasonabll foreseeable fuiure but-lbr the use of ta\ increment assistance.
). Finling thut ,he TIt- Plun.[or Tur Increnent Financing District l'o. 12 co4forms to the
generul plun .[or the devlopment or redetelopmenl of the municipaliq' as a thole.
The Planning Commission reviesed the TIF Plan on March 2. l0l I and approved a
recommendation lo the Cit) Council that the TIF Plan conforms to the general plan for
derelopment or redevelopment of the Cit1.
4. l'iruling rhat rhe TIF Plun .for Tar lncrement Financing Disrrict .\o. 12 ttill aford
ntatimum opportmtill', t'onsistent v'ilh lhe soun.l needs of the Cih' as a v'hole,.for lhe detelopment
or redevelopment of the Dov'ntot'n Chanhassen Redetelopment Project Area ht prit'ote
enterprise.
Through rhe implementation of the TIF Plan. the Citl *ill provide an impetus lbr
residential dJvelopmeni *'hich is desirable and necessar) for providing for an increased
population and increased need for life-c1'cle housing r*'ithin the Citv'
t .&i'n rtsol\f,o: I Q02l - l I doc\
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