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96-8399r 74 RESOLUTION NO. 8399 RESOLUTION APPROVING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ESTABLISHING THE INTERCHANGE TAX INCREMENT FINANCING DISTRICT AND APPROVING AND ADOPTING THE TAX INCREMENT FINANCING PLAN RELATED THERETO, WITHIN THE RICHFIELD REDEVELOPMENTPROJECTAREA. BE IT RESOLVED by the City Council (the "Council") of the City of Richfield, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Richfield Housing and Redevelopment Authority (the "Authority") has heretofore established the Richfield Redevelopment Project Area (the "Redevelopment Project") and adopted the Redevelopment Plan with respect thereto and it has been proposed that the Authority establish within the Redevelopment Project the Interchange Tax Increment Financing District and approve and adopt the related Tax Increment Financing Plan therefor (the "TIF Plan") and the modification to the existing Redevelopment Plan therefor (the "Modification"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and 469.174 through 469.179, inclusive, as amended; all as reflected in the TIF Plan, and presented for the Council's consideration. 1.02. The Council has investigated the facts relating to the TIF Plan. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the Interchange Tax Increment Financing District and the adoption and approval of the proposed Modification and TIF Plan relating thereto, including, but not limited to, notification of Hennepin County and School District No. 280 and Intermediate School District No. 287 having taxing jurisdiction over the property to be included in the Interchange Tax Increment Financing District, a review of and written comment on the TIF Plan 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 It) relating to the TIF Plan 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 or Authority files and proceedings on the TIF Plan. The Reports include data, information and/or substantiation constituting or relating to (1) the "studies and analyses" on why the new Tax Increment District meets the so-called "but for" test; and (2) the bases 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 a part of this resolution to the same extent as if set forth in full herein. Resolution No. 8399 Page two Section 2. Findings for the Approval of the Modification and the TIF Plan. 2.01. The Council hereby finds that the Modification and the establishment of the Interchange Tax Increment Financing District and the TIP Plan, are intended and, in the judgement 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 TIF Plan, which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No. 1-3. 3.01. The Council hereby finds that the Interchange Tax Increment Financing District is a redevelopment district under Minnesota Statutes, Section 469.174, subd. 10 (a)( 1). 3.02. The Council further finds that the proposed redevelopment, in the opinion of the Council, 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 the district permitted by the TIF Plan, that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the Interchange Tax Increment Financing District by private enterprise. 3.03. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes, Section 273.1399, subd. 6(d), in order to qualify the Interchange Tax Increment Financing District for exemption from state aid losses set forth in Section 273.1399. 3.04. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.05. The City of Richfield elects to calculate fiscal disparities for this District in accordance with Minnesota Statutes, Section 469.177, subdivision 3, clause a, which means the fiscal disparities contribution would not be taken from within the District. Section 4. Approval of the Modification and TIF Plan. 4.01. The Modification and the TIF Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, is 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 TIF Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 4.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of the Interchange Tax Increment Financing District, as described in the TIF Plan, and to certify in each year Resolution No. 8399 Page three thereafter the amount by which the original net tax capacity has increased or decreased; and the City of Richfield is authorized and directed to forthwith 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 the Interchange 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 28th day of October, 1996 ATTEST: .~~ ;:?~ Thomas P. Ferber, City Clerk Page four EXHIBIT A RESOLUTION # 8399 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the Interchange Tax Increment Financing District as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the Interchange Tax Increment Financing District is a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1). The Interchange Tax Increment Financing District consists of 1 parcel of property, with development plans for retail facilities. An inventory of the parcel shows that at least 15 percent of the parcel is occupied as defined in the Act. An inspection of the buildings located within the Interchange Tax Increment Financing District finds that at least 50 percent of the buildings, riofiricluding outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance are structurally substandard as defined in the Act. 2. Finding that the proposed development, in the opinion of the Council, would not 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 the district permitted by the plan. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount of commercial/industrial property for expansion adjacent to the existing project, the incompatible land uses at close proximity, 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 the Interchange Tax Increment Financing District and the use of tax increments has been performed as described above. Such analysis is included in the TIF Plan and shows that the estimated market value of the proposed development (less the indicated subtractions) after discounting by the present value of the tax increment is significantly greater than the increase in the market value estimated to result from any other development that could be expected to occur without the use of tax increment after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. (See Cashflow in Appendix B in the Tax Increment Financing Plan for the Interchange Tax Increment Financing District). 3. Finding that the Interchange Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The site is appropriately zoned. The TIF Plan has been reviewed by the Planning Commission and been found to conform to the general development plan of the City. 4. Finding that the Interchange Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Richfield Redevelopment Project Area by private enterprise. The commercial development to be assisted by the Interchange Tax Increment Financing District will result in increased employment in the City and the State of Minnesota, eliminate a blighting influence, and add a high quality development to the City.