Loading...
99-8775r 32 RESOLUTION NO. 8775 RESOLUTION MODIFYING THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN RELATING THERETO; MODIFYING THE TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; MODIFYING THE TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; ESTABLISHING WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA, RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT AND ADOPTING THE TAX INCREMENT FINANCING PLAN RELATED THERETO; ALL RELATING TO THE RICHFIELD REDISCOVERED NEW CONSTRUCTION PROGRAM BE IT RESOLVED, by the City Council (the "Council") ofthe City of Richfield, Minnesota (the "City") as follows: Section 1. Recitals 1.01 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") has heretofore adopted the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area, Modification to the Tax Increment Financing Plan for the Gramercy Tax Increment Financing District, Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District, established the Richfield Rediscovered 1999 Tax Increment Financing District, and adopted the Tax Increment Financing Plan related thereto, (collectively, the "Plans"), all related to the Richfield Rediscovered New Construction Program, and all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.001 through 469.047, and Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Plans and presented for the Council's consideration for proposed approval. 1.02 The Council has investigated the facts relating to the Plans. 1.03 The City or HRA has performed all actions required by law to be performed prior to the adoption and approval of the Plans, including, but not limited to, notification of Hennepin County and School District No. 280 having taxing jurisdiction over the property to be included in Gramercy, Urban Village, and Richfield Rediscovered 1999 Tax Increment Financing Districts, notice of the modifications and proposed redevelopment district to the local county commissioner, a request for review of and written comment on the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04 Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information, and/or substantiation constituting or relating to (1) the "studies and analyses" on why the new Richfield Rediscovered 1999 Tax Increment Financing District meets the so-called "but for" test; and (2) the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies, and adopts the Reports, which are hereby incorporated into and made as fully apart of this resolution to the same extent as if set forth in full herein. Section 2. Findinos for the Adoption of the Modified Plans for Richfield Redevelopment Proiect Area, Gramercv Tax Increment Financing District. and Urban Villaoe Tax Increment Financing District 2.01 The Council hereby finds that the Modified Plans are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for redevelopment in the public purpose and accomplish certain objectives as specified in the Plans, which are hereby incorporated herein. Section 3. Findinos for the Establishment of Richfield Rediscovered 1999 Tax Increment Financing District 3.01 The Council hereby finds that Richfield Rediscovered 1999 Tax Increment Financing District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10(a)(1). 3.02 The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value on the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Richfield Rediscovered 1999 Tax Increment Financing District permitted by the Tax Increment Financing Plan; that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs for the City as a whole, for the development of Richfield Rediscovered 1999 Tax Increment District by private enterprise. 3.03 The City elects to make a qualifying contribution in accordance with Minnesota Statues, Section 273.1399, subd. 6(d) in order to qualify Richfield Rediscovered 1999 Tax Increment District for exemption from state aid losses set forth in Section 273.1399, subd. 6(c). Section 4. Approval and Adoption of the Plans 4.01 The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Clerk. 4.02 The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiated, draft, prepare, and present to this Council for its consideration all further plans, resolutions, documents, and contract necessary for this purpose. 4.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of Richfield Rediscovered 1999 Tax Increment Financing District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City of Richfield is authorized and directed to forwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within Richfield Rediscovered 1999 Tax Increment Financing District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. Adopted by the City Council of the City of Richfield, Minnesota this 11th day of October, 1999. ATTEST: -I~ p~_ Thomas P. Ferber, City Clerk Exhibit A The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Richfield Rediscovered 1999 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that Richfield Rediscovered 1999 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). Richfield Rediscovered 1999 consists of 33 parcels, with plans to redevelop the area for residential purposes. The Council generally believes that each of the parcels in the District are occupied by buildings, streets, utilities, or other improvements and the buildings in Richfield Rediscovered 1999, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. Because Richfield Rediscovered 1999 is a scattered site redevelopment district, each parcel qualifies individually. These findings are based upon general information about buildings of similar age and construction because building owners did not consent to interior inspections at this time. Prior to a parcel being certified with Hennepin County, an interior inspection will be conducted to confirm that the redevelopment district criteria have been met. (See also Appendix D) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Richfield Rediscovered 1999 permitted by the Plan. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing Richfield Rediscovered 1999 and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in Richfield Rediscovered 1999, the total increase in market value would be up to $1,960,000. It is the Council's finding that no development with a market value of greater than $1,478,866 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition and site improvements in the general area of Richfield Rediscovered 1999 (see Cashflow in Appendix C). 3. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan will be reviewed by the Planning Commission on September 28, 1999 in order to find that the Plan is in conformance with the general development plan of the City. Exhibit A-1 4. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Richfield Redevelopment Project Area by private enterprise. The project to be assisted by Richfield Rediscovered 1999 will result in the redevelopment and renovation of substandard properties, increased tax base of the State and add a high quality development to the City.