Adopt Resolution #22-129 Making Certain Findings With Respect to Substandard Buildings

The purpose of this case is to adopt findings documenting substandard buildings at 6336 Hwy 10 NW for the purposes of possible creation of a future Redevelopment TIF District.  These actions are consistent with the approach outlined by the EDA at the September 12, 2019 meeting.  

Background:
In July of 2019, City Staff contracted with LHB to get an objective, professional opinion on the probability of this area qualifying as a Redevelopment TIF District (25 years) or Renewal and Renovation TIF District (15 years). As a brief summary of TIF Districts, all existing taxes are paid and distributed to the appropriate taxing entities (City of Ramsey, Anoka County, Anoka Hennepin School District). New taxes generated by new investment (increment) that would not have occurred without the assistance (the 'but for' test) are still collected, but captured within the geographic boundaries of the District and used for eligible costs such as public infrastructure, site improvements, and land acquisition.
 
LHB Staff visited the site and put together the attached reference map identifying the probability of a building being substandard. The analysis is preliminary in nature and each building would need an inspection of the inside of the building, but the current analysis does give a good idea of what buildings might qualify for a TIF District. Based on the preliminary information it appears likely that a Redevelopment District (25 Years) could be created in this area.

At the September 12, 2019 EDA meeting, the EDA authorized staff to begin work with LHB to conduct inspections of buildings that have a high probability when opportunities present themselves.  Hwy 10 planning /design actions are underway and Anoka County has commenced negotiations for partial and full acquisitions of parcels in the area identified on the Reference TIF Probability Map.  6336 Hwy 10 has been acquired by Anoka County, so there is a need to act swiftly to be able to consider the building for the future TIF District.  In order to qualify a building(s) for a future TIF District, the inspection needs to be completed before the demolition and findings of fact need to be adopted by the City Council.   This building along with other buildings in the general area will require inspections in the near future to keep up with County partial and full acquisitions related to Hwy 10.

This case is not committing the City Council to the creation of a future Redevelopment TIF District, it is only setting the groundwork to do so at a later date (within 3 years) if the Council decides to move forward.

N/A

The TIF Analysis for Findings for 6336 Highway 10 has been completed by LHB. All qualifying buildings (2) on site have been confirmed as substandard and would be allowed to be considered as part of a future Redevelopment TIF District.  A copy of the report is attached to this case.  A Resolution Making Certain Findings with Respect to Substandard Buildings is needed to the adopted by the City Council to complete the TIF eligibility process. This Resolution has been reviewed by Ehlers and TAFT and satisfies the state statutory requirement.

This resolution also gives the City Council the flexibility to use part of the 4M of funds committed to the Hwy 10 project to be spent on the demolition costs associated with 6336 Hwy 10.  The City Council is not bound to use funds on this cost, it only gives flexibility to do so if chooses.  Future discussion on how best to allocate the 4M for the Hwy 10 project will likely be discussed at a future work session.  Eventually a JPA will be entered into with Anoka County outlining where the City contribution will be allocated. Subsequent resolutions could be presented to the City Council in the future for Substandard Findings of other parcels in the area and costs associated with acquisition or demolition of these parcels to allow these parcels to be eligible for entry into the TIF District.

The funding source for the demolition costs is to be determined at a later date. The cost of the demolition will only be known after Anoka County completes the demolition.  Possible funding sources could include:

1) Part of 4M city contribution to Hwy 10 Gateway Project
2) EDA unencumbered funds
3) Other Funding Sources

Staff wants to emphasize that this action does not bind the City Council to pay for the demolition costs; it just gives the City the option to do so.

Alternatives Include:
1) Adopt Resolution #22-129 Making Certain Findings With Respect to Substandard Buildings (as presented)
2) Adopt Resolution #22-129 Making Certain Findings With Respect to Substandard Buildings (with changes)
3) Something else

Staff recommends Adoption of Resolution #22-129 Making Certain Findings With Respect to Substandard Buildings (as presented)

Motion to Adopt Resolution #22-129 Making Certain Findings With Respect to Substandard Buildings (as presented)