13-1148r HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
HRA RESOLUTION NO. 1148
RESOLUTION CALLING PUBLIC HEARING ON AMENDED AND
RESTATED BUSINESS SUBSIDY AGREEMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (the "Authority") and the City of Richfield (the "City") have previously
established the Interchange Tax Increment Financing District and the Lyndale Gateway
Tax Increment Financing District (collectively, the "TIF Districts") within the Richfield
Redevelopment Project Area and adopted tax increment financing plans therefor,
pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended, and
Sections 469.174 to 469.1799, as amended; and
WHEREAS, Minnesota Statutes, Section 469.176, Subd. 4m (the "Temporary
TIF Authority Act") authorizes the expenditures of available tax increment from any
existing tax increment financing district, notwithstanding any other law to the contrary, to
provide improvements, loans, interest rate subsidies, or assistance in any form to
private development consisting of construction or substantial rehabilitation of buildings
and ancillary facilities, if certain conditions are met; and
WHEREAS, at its meeting on July 25, 2011, the Authority approved a spending
plan for the TIF Districts in accordance with the Temporary TIF Authority Act (the
"Spending Plan") to utilize existing tax increment revenues from the TIF Districts in
order to stimulate construction or rehabilitation of private development in a way that will
also create or retain jobs; and
WHEREAS, the assistance authorized under the Spending Plan expressly
included assistance to Lyndale Gardens, LLC, a Minnesota limited liability company (the
"Developer") to finance the costs of redeveloping the Lyndale Garden Center, located at
6400 Lyndale Avenue South in the City, which costs include the acquisition of the
property, the remediation of environmental contaminants and the substantial
rehabilitation of the existing building so that it is suitable for commercial use (the
"Project"); and
WHEREAS, on August 15, 2011, the Board of the Authority approved a Funding
Agreement, between the Authority and the Developer (the "Funding Agreement"),
pursuant to which the Authority provided $650,000 of the funds available under the
Spending Plan to the Developer to help finance the Project; and
WHEREAS, on August 15, 2011, the Board of the Authority also approved a
Business Subsidy Agreement, between the Authority and the Developer (the "Business
Subsidy Agreement"), which set forth the terms and conditions of the business subsidy
provided to the Developer pursuant to the Funding Agreement; and
WHEREAS, on the date hereof, at the request of the Developer, the Board of the
Authority approved the execution of the First Amendment to Funding Agreement (the
"First Amendment to Funding Agreement"), which amends the scope of the Project to
include both the acquisition and substantial rehabilitation of the Lyndale Garden Center
(as described in the Funding Agreement), or in the alternative, the demolition of the
Lyndale Garden Center and the construction of an approximately 30,000 square foot
retail building which is expected to house a cooperative grocery store; and
WHEREAS, the Developer has requested that the Business Subsidy Agreement
be amended and restated to incorporate the new scope of the Project and to extend the
timeframe to complete the Project; and
WHEREAS, Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the
"Business Subsidy Act") requires a public hearing when the goals of the original Business
Subsidy Agreement are changed and approval by the City Council for such amendments;
and
WHEREAS, the Authority has determined to call a public hearing with respect to
the amended and restated Business Subsidy Agreement on March 18, 2013; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The Executive Director is authorized and directed to publish a notice for
publication in the official newspaper of the Authority setting a, public hearing before the
Authority Board on Monday, March 18, 2013, at or after 7:00 p.m. at City Hall on the
proposed amended and restated Business Subsidy Agreement. The notice, attached as
EXHIBIT A, shall be published in the newspaper at least 10 days prior to the public
hearing, and shall be in substantially the form attached hereto.
2. The Executive Director is authorized and directed to take all other actions
necessary to bring the amended business subsidy before the City Council for approval.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of February, 2013.
iA44 4d
M. Sands I Chair
Su ne ,
ATTEST:
Doris Rubenstein, Secretary