[Ord. 1875]
The Pennsylvania Tax Increment Financing Act, 53 P.S. § 6930.1,
et seq., as amended (the "Act"), authorizes local taxing bodies to
cooperate in providing financing for public facilities and residential,
commercial and industrial development and revitalization in their
jurisdictions for the purposes of providing new employment opportunities,
arresting and alleviating substandard conditions, increasing the tax
base, and improving the general economy of the Commonwealth of Pennsylvania.
The Redevelopment Authority of the Borough of State College
(the "Authority"), has made a formal presentation to the Council of
this Borough regarding the establishment of a tax increment district
in this Borough and the tax increment financing of certain improvements
in and for or directly benefiting such proposed tax increment district,
which presentation has included a description of the proposed boundaries
of such tax increment district, the tentative plans for development
of the district, and an estimate of the general impact of the proposed
tax increment district on property values and tax revenues.
The Authority has submitted to the Council of this Borough a
recommendation as to the boundaries of the proposed tax increment
district, and has prepared and submitted the Project Plan (hereinafter
identified) to the Council of this Borough and to the governing bodies
of the municipalities (including the county) and school districts
that levy real property taxes within the boundaries of the proposed
tax increment district.
The findings and recommendations concerning the proposed tax
increment district have been incorporated in such Project Plan.
The Council of this Borough desires to create and to participate
in the Fraser Centre Tax Increment District and has given proper notice
to the County (hereinafter identified) and the School District (hereinafter
identified) of its intent and desire to create such tax increment
district, in compliance with the Act.
The Board of County Commissioners of such County has enacted
an ordinance, and the Board of School Directors of such School District
has adopted a resolution, agreeing to participate in, or opting not
to participate in, the tax increment district and have delivered copies
of such ordinance and such resolution, respectively, to the Council
of this Borough, copies of which are on file with the Secretary of
this Borough.
A public hearing on the creation of the proposed tax increment
district was duly convened and held on July 9, 2007, such date being
not less than 30 days following publication of a notice of such public
hearing in at least one newspaper of general circulation in this Borough
and the posting of a copy of such notice in the Borough offices, all
in compliance with the Act; and
At least three weeks have passed since the date on which said
public hearing was held.
The Council of this Borough has determined that it is in the
best interest of the health, safety and welfare of the citizens of
this Borough to create the proposed tax increment district and to
implement the tax increment financing and the project described in
such Project Plan; and
Any and all prerequisites to enactment of this Ordinance set
forth in the Act have been satisfied.
[Ord. 1875]
The following capitalized words and terms, when used in this
Ordinance, shall have the following meanings:
a.
ACT — The Tax Increment Financing Act of the Commonwealth of
Pennsylvania, 53 P.S. § 6930.1, et seq., as amended.
b.
AGREEMENT or TIF AGREEMENT — The Tax Increment Financing Agreement
to be made by and among the Authority, the County, the School District
and this Borough, with respect to the District and the use and application
of the Tax Increment Revenues, such Agreement to be in the form approved
in this Ordinance.
c.
AUTHORITY — The Redevelopment Authority of the Borough of State
College, or its lawful successor.
d.
BOROUGH — The Borough of State College, Centre County, Pennsylvania,
or its lawful successor.
e.
COUNTY — The County of Centre, Pennsylvania.
f.
DISTRICT or TIF DISTRICT — The Fraser Centre Tax Increment
District created pursuant to this Ordinance.
g.
DISTRICT CREATION DATE — The date as of which the District
shall come into existence, as specified in § 17-1004 of
this Ordinance.
h.
FINANCE OFFICER — The legally authorized agent of this Borough
responsible by law for receipt and disbursement of the tax revenues
of this Borough.
i.
PROJECT — The undertakings and activities of the Authority
in implementation of the Project Plan.
j.
PROJECT COSTS — Expenditures and costs incurred or to be incurred
for expenditures with respect to the Project that constitute "project
costs" within the meaning of the Act.
k.
PROJECT PLAN — The document prepared by or on behalf of the
Authority in compliance with the Act and entitled "Fraser Centre Tax
Increment District Project Plan," a copy of which is on file with
the Secretary of this Borough, as the same may be amended from time
to time in accordance with the Act.
l.
SCHOOL DISTRICT — State College Area School District, Centre
County, Pennsylvania, or its lawful successor.
m.
TAX INCREMENT or TAX INCREMENT REVENUES — Shall be deemed to
include all incremental real property tax revenues resulting from
an increase in the total market value of taxable real property situated
in the District, determined with reference to the aggregate market
value of all taxable real property located within the District as
of the District Creation Date, and shall include all payments in lieu
of real property taxes assigned to or agreed to be paid by governmental
entities or nonprofit organizations with respect to real property
situated in the District pursuant to agreements made after the District
Creation Date, but only to the extent such payments in lieu of real
property taxes are attributable to an increase in the market value
of such property over the market value thereof as of the District
Creation Date, all as more fully set forth in the Agreement.
n.
TAX INCREMENT FUND — The fund established by the Authority
with respect to the District and constituting the "tax increment fund"
within the meaning of the Act, into which the Authority shall pay
or cause to be paid all Tax Increments and any additional money received
pursuant to an appropriation from the County, the Borough or the School
District or from any other source, and from which the Authority shall
disburse money to pay Project Costs and to satisfy claims of holders
of TIF Bonds. Unless otherwise permitted by the Agreement, such fund
shall be established and maintained by the Authority with a bank,
bank and trust company, trust company or national banking association
appointed by the Authority to serve as depository.
o.
TIF BONDS — Bonds, notes or other obligations issued by the
Authority to finance Project Costs (or to retire bonds, notes or other
obligations previously issued for such purpose) and payable from Tax
Increment Revenues.
[Ord. 1875]
The District shall contain the following adjoining full units
of property assessed for real property tax purposes, all of which
are located within the Borough:
The parcels of land designated as Centre County Tax Parcel #36-012-,036,0000-,
36-012-, 038-,0000-, 36-012-,0039-,0000-, and 36-012-,040-,0000, and
surrounding streets and alleys.
[Ord. 1875]
The District is hereby created as of October 1, 2007.
The District shall continue in existence until such time as
all Project Costs and all tax increment bonds issued by the Authority
and payable from Tax Increment Revenues are fully paid or until that
date which is 20 years after the District Creation Date, as permitted
by the Act, whichever is earlier, unless an amendment shall be made
to the Project Plan in accordance with Section 5(a)(8) of the Act,
53 P.S. § 6930.5(a)(8), extending the term of existence
of the District.
The District shall not be dissolved as long as tax increment
bonds or notes for the District remain outstanding.
[Ord. 1875]
The District shall be identified and known as the "Fraser Centre
Tax Increment District."
[Ord. 1875]
The Council of this Borough makes the following findings:
a.
The District is a contiguous geographic area within an area which a planning commission (the State College Borough Planning Commission) has designated as a "redevelopment area" in accordance with the Pennsylvania Urban Redevelopment Law, 35 P.S. § 1701, et seq.
b.
The improvement of the area is likely to enhance significantly the
value of substantially all of the other real property in the District.
c.
The aggregate value of equalized taxable property of the District,
plus all existing tax increment districts within the Borough, does
not exceed 10% of the total value of equalized taxable property within
the Borough, nor does the same exceed 10% of the total value of equalized
taxable property within the County or the School District.
d.
The area comprising the District as a whole has not been subject
to adequate growth and development through investment by private enterprise
and is not reasonably anticipated to be adequately developed without
the adoption of the Project Plan.
e.
No individuals, families or small businesses will be displaced by
the creation of the District or the public works or improvements and
residential, commercial, or industrial development or revitalization
within the District contemplated by the Project Plan.
f.
The Project Plan conforms to the Borough's master plan.
g.
The Project Plan will afford maximum opportunity, consistent with
sound needs of the community as whole, for the rehabilitation or redevelopment
of the District by private enterprise.
h.
The District is a "blighted area" containing characteristics described
in Section 2 of the Urban Redevelopment Law (in particular, and without
limitation, defective design and arrangement of existing buildings,
and economically or socially undesirable land uses) and the Project
is necessary to eliminate such conditions.
[Ord. 1875]
The Council of this Borough hereby approves the Project Plan
for the District prepared by the Authority.
[Ord. 1875]
The Authority is hereby designated as the authority charged
with preparing, implementing, monitoring and directing the Project
Plan and as the Issuing Authority, as defined in the Act, for any
tax increment bonds or notes which may be necessary to finance Project
Costs for the District. The Authority is authorized to undertake any
and all methods of financing of Project Costs available pursuant to
Section 9 of the Act[1] and to cooperate with the private developer or developers
of the land in the District in the implementation of the Project Plan
and the contemplated financing.
[1]
Editor's Note: See 35 P.S. § 1709.
[Ord. 1875]
This Borough hereby allocates to the Authority 87% of all Tax
Increment Revenues of this Borough received from the District Creation
Date until that time, after the completion of all improvements specified
as part of the Project in the Project Plan and any amendments thereto
made in accordance with the Act, when the Authority has received aggregate
Tax Increment Revenues allocated to it by the participating local
government units in an amount equal to the aggregate of all expenditures
made or monetary obligations incurred for Project Costs, including
the payment of all TIF Bonds.
[Ord. 1875]
The Finance Officer of this Borough shall pay over to the Authority,
or shall cause to be paid over to the Authority, in each case for
deposit in the Tax Increment Fund, on each settlement date provided
by law for the payment of real property taxes levied by this Borough,
out of all such taxes which have been collected and all payments in
lieu of taxes which have been received, that portion which represents
the Tax Increment Revenues which have been allocated by this Borough
to the Authority. The Finance Officer of this Borough is also authorized
to pay over to the Authority for deposit into the Tax Increment Fund
any additional moneys which the Council of this Borough from time
to time may appropriate for the purpose of the payment of Project
Costs, including payment of the TIF Bonds, and any moneys received
by this Borough from time to time from any other sources to the extent
such moneys are intended or restricted for payment of Project Costs,
including payment of the TIF Bonds.
[Ord. 1875]
From and after the District Creation Date and to the fullest
extent permissible by law, any taxable property situated within the
District which may be eligible for tax abatement under the Local Economic
Revitalization Tax Act (LERTA), if any, shall not be entitled to receive
the benefit of such LERTA abatements. The appropriate officers of
this Borough are hereby directed to notify any such property owners
of the termination of LERTA tax abatements.
[Ord. 1875]
This Borough shall enter into the Agreement with the Authority
and the other local government units participating in the District
for the purposes of, among other things, confirming the appointment
of the Authority as the entity charged with preparing and implementing
the approved Project Plan and issuing the TIF Bonds; confirming the
allocation of Tax Increment Revenues to the Authority; setting forth
the manner in which such allocated Tax Increment Revenues shall be
paid to the Authority and applied by the Authority; and setting forth
such further terms and provisions as may be deemed necessary or desirable
for the implementation of the Project Plan, the issuance and sale
of the TIF Bonds and the security of the TIF Bonds; provided that
nothing in the Agreement shall constitute a pledge of the full faith,
credit or taxing power of this Borough for the payment of Project
Costs or the principal of or interest on the TIF Bonds.
The Agreement shall be for the duration of the term of the District
and shall be substantially in the form submitted to the Council of
the Borough.
The Agreement shall be executed and delivered on behalf of this
Borough by the President of Borough Council, and is hereby authorized
and directed to execute and to deliver the Agreement in substantially
the form approved in the preceding paragraph of this Ordinance, together
with such changes thereto as such officer, following consultation
with the Solicitor of this Borough, may approve, such officer's execution
and delivery of the Agreement to constitute conclusive evidence of
his or her approval of any such changes. The Secretary of this Borough
is hereby authorized and directed to attest execution of the Agreement
by the President of Borough Council and to affix the Official Seal
of this Borough upon the Agreement.
[Ord. 1875]
The President of Council, and the Secretary of this Borough
are hereby each authorized to execute and to deliver on behalf of
this Borough such other instruments, documents and certificates as
the Authority or any other party to the issuance, sale and delivery
of the TIF Bonds may reasonably request. Each such instrument, document
and certificate shall be in such form and have such content as the
officer of this Borough executing the same, following consultation
with the Solicitor of this Borough, may approve, such officer's execution
and delivery of the same to constitute conclusive evidence of such
approval.
[Ord. 1875]
The Authority may propose, and the Council of this Borough may
adopt, by Ordinance or in such other manner as shall be permitted
by law, such amendments to the Project Plan and District as are deemed
advisable, but only in accordance with the Act.
[Ord. 1875]
Any reference in this Ordinance to any officer of this Borough
shall be deemed to refer to his or her duly qualified successor in
office, if applicable.
[Ord. 1875]
This Borough approves, ratifies and confirms all action heretofore
taken by its officers, its designated representative or representatives,
and other persons on its behalf in connection with the undertakings
herein contemplated, to the extent not inconsistent with this Ordinance.
[Ord. 1875]
In the event any provision, section, sentence, clause or part
of this Ordinance shall be held to be invalid, such invalidity shall
not affect or impair any remaining provision, section, sentence, clause
or part of this Ordinance, it being the intent of the Council of this
Borough that such remainder shall be and shall remain in full force
and effect.
[Ord. 1875]
All ordinance or resolutions and parts of ordinances or resolutions
that are inconsistent with this Ordinance are hereby repealed.
