EDA Res 16-001 Oppidan TIFECONOMIC DEVELOPMENT AUTHORITY OF
THE CITY OF SHOREWOOD
RESOLUTION NO. 16 -001
APPROVING A REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 2, A TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 2 AND A CONTRACT FOR PRIVATE
DEVELOPMENT BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF
SHOREWOOD AND KTJ 285, LLC
BE IT RESOLVED by the Board of Commissioners (the "Board ") of the Economic
Development Authority of the City of Shorewood, Minnesota (the "Authority "), as follows:
Section 1. Recitals.
1.01. The Authority finds that there is a need for redevelopment within the City to
remedy blight and blighting conditions, prevent the spread of blight, promote the health, safety
and welfare of City residents, and encourage related development and redevelopment in order to
protect and improve the tax base and general economic vitality of the City. The Authority has
caused to be prepared a document entitled "Redevelopment Plan for Redevelopment Project No.
2" (the "Redevelopment Plan "), pursuant to Minnesota Statutes, Sections 469.001 through
469.047 and Sections 469.090 through 469.1082, inclusive, as amended (collectively, the "Act ").
1.02. The Authority has determined a need to create Tax Increment Financing District
No. 2 (the "TIF District "), a redevelopment district, within Redevelopment Project No. 2
pursuant to the Act and Minnesota Statutes Sections 469.174 through 469.1794, as amended (the
"TIF Act "). The Authority has proposed using tax increment financing in order to facilitate the
development of a 105 unit rental housing facility containing independent, assisted living and
memory care units for seniors (the "Housing Facility "), which will be located within the proposed
TIF District. To this end, the Authority has caused to be prepared a document entitled
"Economic Development Authority for the City of Shorewood, Minnesota, Tax Increment
Financing Plan for Tax Increment Financing District No. 2 a Redevelopment District (Oppidan
Senior Housing Project" (the "TIF Plan ").
1.03. The Redevelopment Plan and the TIF Plan have been reviewed by the Common
Council of the City of Shorewood, Minnesota (the "Council ") and in accordance with the TIF
Act, the Council found that the TIF Plan conforms to the general plan for the development and
redevelopment of the City of Shorewood, Minnesota (the "City ") as a whole.
1.04. Notice of the Authority's intent to establish the TIF District was delivered to the
County Commissioner who represents the site at least 30 days before publication of the notice of
public hearing.
1.05. A copy of the draft TIF Plan, including estimates of the fiscal and economic
implications of the TIF District, was provided to Independent School District No. 276 and
Hennepin County at least 30 days before the date hereof.
1.06. The Board of the Authority has fully reviewed the contents of the TIF Plan and the
Redevelopment Plan.
1.07. On the date hereof, the Common Council of the City conducted a public hearing
with respect to the TIF Plan and the Redevelopment Plan, at which the views of all interested
persons were heard.
1.08. There has also been presented before the Authority a Contract for Private
Development (the "Contract ") between the Authority and KTJ 285, LLC, setting forth the
parties' respective responsibilities in developing the Housing Facility.
1.09. The Board of the Authority has reviewed the Contract and finds that the execution
of the same and the Authority's performance of its obligations thereunder are in the best interests
of the City and its residents.
Section 2. Findings; Redevelopment Project No. 2.
2.01. The Authority finds that there is a need for redevelopment within the City and the
Project Area to remedy blight and blighting conditions, prevent the spread of blight, promote the
health, safety and welfare of City residents, and encourage related development and
redevelopment in order to protect and improve the tax base and general economic vitality of the
City. More specifically, the Authority has identified that development of the property included in
the Project is necessary to further development and housing goals.
2.02. The Authority specifically finds that: (a) the land within the Project Area would
not be available for redevelopment without the financial aid to be sought under this
Redevelopment Plan; (b) the Redevelopment Plan will afford maximum opportunity, consistent
with the needs of the City as a whole, for the development of the Project by private enterprise;
and (c) that the Redevelopment Plan conforms to the general plan for the development of the
City as a whole.
Section 3. Finding TIF District No. 2.
3.01. It is found and determined that it is necessary and desirable for the sound and
orderly development of the Redevelopment Project and the City as a whole, and for the
protection and preservation of the public health, safety, and general welfare, that the authority of
the Act be exercised by the Authority to provide public financial assistance to the TIF District
and the Redevelopment Project.
3.02. It is further found and determined, and it is the reasoned opinion of the Authority,
that the development proposed in the TIF Plan for the TIF District could not reasonably be
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expected to occur solely through private investment within the reasonably foreseeable future and
the increased market value of the site that could reasonably be expected to occur without the use
of tax increment financing would be less than the increase in market value estimated to result
from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the TIF District permitted by the TIF Plan, all as
described in the TIF Plan.
3.03. The Plan for the TIF District conforms to the general plan of development of the
City as a whole.
3.04. The Plan for the TIF District will afford maximum opportunity, consistent with
the sound needs of the City as a whole, for the development of the TIF District and the
Redevelopment Project by private enterprise.
3.05. The TIF District is a redevelopment district under Section 469.174, Subdivision
10 of the Act, based on the findings described in the TIF Plan, which are incorporated herein by
reference, and other records on file with the Authority.
3.06. Additional reasons and facts supporting the Findings under this Section are stated
in the TIF Plan. The Authority has also relied upon the reports and recommendations of its staff
and consultants as well as the personal knowledge of members of the Board in reaching its
conclusions regarding the TIF District.
Section 4. Findings; Contract for Private Development.
The Contract, as presented to the Authority, is hereby in all respects approved, subject to
modifications that do not alter the substance of the transaction and that are approved by the Chair
of the Board and the Executive Director; provided that execution of the Contract by such officials
shall be conclusive evidence of their approval.
Section 5. Further Approvals; City Approval.
5.01. Based on the foregoing, the Authority hereby approves the Redevelopment Plan
for Redevelopment Project No. 2, and the TIF Plan for Tax Increment Financing District No. 2
located within Redevelopment Project No. 2, pursuant to and in accordance with the Act and the
Tax Increment Act.
5.02. The Authority requests that the Common Council of the City of Shorewood (the
"Council ") approve the Redevelopment Plan for Redevelopment Project No. 2, and the TIF Plan
for Tax Increment Financing District 2 located within Redevelopment Project No. 2, and the
Contract.
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Adopted by the Board of Commissioners of the Shorewood Economic Development
Authority this 14 th day of July, 2016.
Scott y, Presi en
William S/JoynW Executive Director