PUBLIC HEARINGS - Joe Huss, Finance Director
Title
APPROVING TAX INCREMENT FINANCING PLAN AND REDEVELOPMENT PLAN MODIFICATIONS AND DEVELOPMENT AGREEMENT (INFINITE CAMPUS)
Background
The attached resolution provides for an amendment to Blaine’s Economic Development Project Plan to expand the plan’s project area to include the Infinite Campus site at 109th and Lexington as well as approval of a Development Agreement with Infinite Campus (IC) that would provide financial assistance to expand Infinite Campus’ corporate headquarters in Blaine.
The project would double the size of the current 110,000 square-feet Infinite Campus facility and allow IC to add over 400 new employees. The proposed project includes an eight-story office tower, connecting auditorium, and a two-level parking structure.
The development would add roughly $20 million in taxable market value and the City/EDA would provide $800,000 in assistance pursuant to the EDA business subsidy policy.
The Blaine City Council will be holding a public hearing on this item later in the evening and, per the attached resolution, is subject to City Council’s adoption.
Recommendation
By motion, adopt the following resolution
Body
BE IT RESOLVED by the City Council (the “Council”) of the City of Blaine, Minnesota (the “City”), as follows:
Section 1. Recitals.
1.01 The Blaine Economic Development Authority (the “EDA”) has proposed to amend the Project Plan (the “Project Plan”) for the Blaine Economic Development Project (the “Project Area”) to expand the Project Area and modify Tax Increment Financing District Nos. 1-13, 1-16, 1-17 and 1-18 within the Project Area (the “TIF Districts”), and adopt modifications to the Tax Increment Financing Plans relating thereto (collectively the “TIF Plans” and, together with the Project Plan, the “Plans”); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047, 469.090 through 469.1082, 469.124 through 469.134, and 469.174 through 469.1794; all as reflected in that certain document, dated July 9, 2015, entitled “Amendment to Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-13, 1-16, 1-17 and 1-18” and presented for the Council’s consideration (the “Amendment”).
1.02 The Council has investigated the facts relating to the Amendment of the Plans and the expansion of the Project Area and area in which tax increments from the TIF Districts may be expended.
1.03 The City has performed all actions required by law to be performed prior to the adoption and approval of the Amendment of the Plans, including, but not limited to, 30 days’ prior notification of the County Auditor and School District Clerk and of the individual affected County Commissioner, a review of the Amendment of the Plans by the City Planning Commission, and the holding of a public hearing thereon following notice thereof published in the City’s official newspaper at least 10 but not more than 30 days prior to the public hearing.
1.04 Certain information and material (collectively, the “Materials”) relating to the Amendment of the Plans and to the activities contemplated therein have heretofore been prepared and submitted to the Council and/or made a part of the City or EDA files and proceedings on the Plans. The Materials include information and/or substantiation constituting or relating to (1) why the expenditure of available tax increments from Tax Increment Financing District No. 1-13 for parking improvements for the Development defined below meets the so-called “but for” test; and (2) the bases for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Materials, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein.
1.05 Infinite Campus, Inc. (the “Developer”) has proposed to construct an approximately 100,000 square foot office facility to be used as the Developer’s corporate headquarters, including an eight-story tower, auditorium and single-level parking structure (collectively, the “Development”) and has requested that the EDA provide tax increment assistance to pay a portion of the public redevelopment costs of the Development.
Section 2. Findings for the Expansion of the Project Area, the Modification of the TIF Districts and Adoption of Amendment of the Plans Therefor.
2.01 The Council hereby finds that: (a) the land within the Project Area would not be available for redevelopment without the financial aid to be sought under the 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 Area by private enterprise; and (c) the Redevelopment Plan conforms to the general plan for the development of the City as a whole.
2.02 The Council finds that the Project Area constitutes an area that is underused or inappropriately used, within the meaning of Minnesota Statues, Section 469.002, subd. 11 and Section 469.028, subd. 4.
2.03 The City Council hereby finds that the Amendment of the Plans is and, in the judgment of the City Council, the effect will be, to carry out the objectives of the Plans and to create an impetus for redevelopment activities associated with the construction of the Development in the City and otherwise promote certain public purposes and accomplish certain objectives as specified in the Plans.
2.04 The City Council hereby ratifies and confirms the findings made in connection with the establishment of the TIF Districts.
2.05 The City Council hereby makes the following additional findings:
(a) The City Council further finds that the proposed Development, in the opinion of City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being:
The costs of dense development with structured parking are higher than for less dense development that would not require structured parking and the Developer has represented that it could not proceed with the Development without tax increment and other assistance.
(b) The City Council further finds that the Amendment of the Plans conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being:
The Amendment of the Plans will generally complement and serve to implement policies adopted in the City’s comprehensive plan. The construction of the Development contemplated is or will be in substantial accordance with the existing zoning or any permitted exception for the property.
(c) The City Council further finds that the Amendment of the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the Project Area by private enterprise. The specific basis for such finding being:
The proposed Development to occur within the Project Area is commercial/office and is consistent with other uses in the area. The Development will increase the taxable market valuation of the City and will increase employment opportunities.
2.06 The provisions of this Section 2 are hereby incorporated by reference into and made a part of the Plans.
Section 3. Approval and Adoption of the Amendment of the Plans.
The Amendment of the Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, is hereby approved, ratified, established, and adopted.
PASSED by the City Council of the City of Blaine this 9th day of July, 2015.