HomeMy WebLinkAboutCity Council Resolution 2019-305
C ITY OF P LYMOUTH
R ESOLUTION N O. 2019-305
R ESOLUTION A PPROVING THE P ROPOSED T ERMS OF T AX I NCREMENT F INANCING
A SSISTANCE R ELATED TO THE F OUR S EASONS M ALL R EDEVELOPMENT P ROJECT
WHEREAS, Plymouth Leased Housing Associates IV, LLLP, a Minnesota limited liability limited
partnership (“PLHA IV”), Plymouth Leased Housing Associates V, LLLP, a Minnesota limited liability limited
partnership (“PLHA V”), and an entity to be formed (“Launch”, and collectively, with PLHA IV and PLHA V, the
"Developers") have requested the City of Plymouth, Minnesota (the "City") to assist with the financing of
certain costs incurred in connection with the redevelopment of the Four Seasons Mall (the "Project"); and
WHEREAS, the portion of the Project to be undertaken by PHLA IV consists of the acquisition and
construction of an approximately 354,200 square-foot rentable apartment community that will consist of an
approximately 255-unit multifamily housing development for elderly heads of households, expected to be
known as Four Seasons Senior Apartments, located at 4108 Lancaster Lane North, in the City (the "Senior
Housing Facilities"); and
WHEREAS, the portion of the Project to be undertaken by PHLA V consists of the acquisition and
construction of an approximately 289,524 square-foot rentable apartment community that will consist of an
approximately 163-unit multifamily housing development for low- and moderate-income households,
expected to be known as Four Seasons Family Apartments, located at 4108 Lancaster Lane North, in the City
(the "Family Housing Facilities", and together, with the Senior Housing Facilities, the “Housing Facilities”);
and
WHEREAS, the portion of the Project to be undertaken by Launch consists of the acquisition and
construction of approximately 23,300 square-foot commercial facilities (the “Commercial Facilities”, and
together, with the Housing Facilities, the “Facilities”); and
WHEREAS, the proposed terms of the tax increment financing assistance have been submitted to the
City for approval.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA as follows:
1. The City Council approves the proposed terms of the tax increment financing assistance, as
presented in Exhibit A, attached hereto; and
2. The approval given to the proposed terms of the tax increment financing assistance is subject to
the approval of development agreements to be entered into with each of the Developers.
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APPROVED by the City Council on this 12th day of November, 2019.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I
compared the foregoing resolution adopted at a meeting of the Plymouth City Council on May 28, 2019 with the original
thereof on file in my office, and the same is a correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________day of
__________________, __________.
____________________________________
City Clerk
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EXHIBIT A
TERMS OF THE TAX INCREMENT FINANCING ASSISTANCE
I. For PHLA IV:
a. A Pay-As-You-Go TIF Note (the “Senior TIF Note”) shall be delivered to PHLA IV for the
Senior Housing Facilities, subject to the following terms:
i. The Senior TIF Note shall be payable from 75% of the available annual tax increment
derived from the Senior Housing Facilities, over an 18-year term;
ii. The principal amount of the Senior TIF Note shall not exceed $3,127,000; and
iii. The interest rate on the Senior TIF Note shall not exceed the lesser of 4.312% or the
interest rate incurred on the project financing per annum.
b. PHLA IV shall enter into a Minimum Assessment Agreement for the Senior Housing Facilities.
PHLA IV agrees that the Minimum Market Value of the Senior Housing Facilities shall be
$45,900,000 as of January 2, 2022, assuming construction would start in 2020, and be 100%
complete by 2021.
c. PHLA IV agrees that for a period of 20 years, commencing from the date of completion of
the Senior Housing Facilities, 100% of the units of the Senior Housing Facilities shall be
occupied by tenants whose average income shall not exceed 60% of the area median
income adjusted for household size.
d. Any grants (other than the DEED and Watershed grants) received by PHLA IV from any
public body shall reduce the amount of tax increment financing assistance for the Senior
Housing Facilities.
II. For PHLA V:
a. A Pay-As-You-Go TIF Note (the “Family TIF Note”) shall be delivered to PHLA V for the Family
Housing Facilities, subject to the following terms:
i. The Family TIF Note shall be payable from 75% of the available annual tax increment
derived from the Family Housing Facilities, over an 18-year term;
ii. The principal amount of the Family TIF Note shall not exceed $1,904,000; and
iii. The interest rate on the Family TIF Note shall not exceed the lesser of 4.306% or the
interest rate incurred on the project financing per annum.
b. PHLA V shall enter into a Minimum Assessment Agreement for the Family Housing Facilities.
PHLA V agrees that the Minimum Market Value of the Family Housing Facilities shall be
$29,340,000 as of January 2, 2022, assuming construction would start in 2020, and be 100%
complete by 2021.
c. PHLA V agrees that for a period of 20 years, commencing from the date of completion of the
Family Housing Facilities, 100% of the units of the Family Housing Facilities shall be occupied
by tenants whose average income shall not exceed 60% of the area median income adjusted
for household size.
d. Any grants (other than the DEED and watershed grants) received by PHLA V from any public
body shall reduce the amount of tax increment financing assistance for the Family Housing
Facilities.
III. For Launch:
a. Launch shall enter into a Minimum Assessment Agreement for the Commercial Facilities.
Launch agrees that the Minimum Market Value of the Commercial Facilities shall be
$3,728,000 as of January 2, 2022, assuming construction would start in 2020, and be 100%
complete by 2021.
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