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11-15-99 agendaCITY OF RICHFIELD MONDAY, NOVEMBER 15, 1999 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7=P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF REGULAR HRA MEETING OF OCTOBER 18, 1999 1. OATH OF OFFICE TO HRA COMMISSIONER RUSS SUSAG 2. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA • 3. PUBLIC HEARING AND CONSIDERATION OF ADOPTION OF THE BUSINESS SUBSIDY CRITERIA HRA LETTER NO. 72 ,• 4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTIONS AUTHORIZING BUSINESS SUBSIDY AGREEMENT FOR WOODLAKE CENTRE AND SECOND AMENDMENT FOR CONTRACT FOR PRIVATE REDEVELOPMENT WITH RICHFIELD STATE AGENCY HRA LETTER NO. 73 r 5. PUBLIC HEARING AND AUTHORIZATION REGARDING SALE OF 6915-13TH AVENUE TO ASCHE AND ASSOCIATES FOR RESIDENTIAL DEVELOPMENT HRA LETTER NO. 74 - 6. CONSIDERATION OF APPROVAL OF A SUPPLEMENT TO THE CONTRACT FOR PRIVATE REDEVELOPMENT WITH RICHFIELD SENIOR HOUSING, INC.; LYNDALE GATEWAY HRA LETTER NO. 75 7. CONSIDERATION OF A RESOLUTION CORRECTING TAX INCREMENT PARCELS INCLUDED IN THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT HRA LETTER NO. 76 r' 8. CONSIDERATION OF RESOLUTION FORGIVING REMAINING BALANCE ON 1990 INTERFUND LOAN TO THE RICHFIELD REDISCOVERED NEW CONSTRUCTION PROGRAM HRA LETTER NO. 77-- 9. PUBLIC HEARING AND ADOPTION OF THE 2000 HRA PROPOSED TAX LEVY AND BUDGET HRA LETTER NO. 78 10.AUTHORIZATION TO ISSUE COMPLETION CERTIFICATES TO STEVEN MARLIN GRANT HOMES, INC. FOR 7432 ALDRICH AND 7315 THOMAS AVENUES; AND TO JOHN B. MAHONEY CONSTRUCTION,- INC. -FOR 6512 BLOOMINGTON AVENUE HRA LETTER NO. 79 'r 11. EXECUTIVE DIRECTOR REPORT 12. CLAIMS AND PAYROLL ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. • 3 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 72 Agenda November 15, 1999 Issue Statement: Conduct a public hearing on general criteria for business subsidies. Background: A new Minnesota law that regulates business subsidies by local units .of government became effective August 1, 1999. Legal counsel has .drafted criteria that will be used as the basis for agreements between the Housing and Redevelopment Authority (HRA) and developers. The City Council will also be considering similar criteria and agreements. The law requires the City and HRA to hold public hearings prior to establishing the criteria. In September the HRA received a request from. Richfield State Agency (RSA), the developer of Woodlake Centre, to cooperatively explore ways to finance unanticipated but needed storm sewer improvements. Storm sewer capacity is sufficient for the development at 66th Street and Lyndale Avenue in the old McDonald's parking lot. However, it was recently discovered that there is insufficient capacity within existing Grand Avenue storm sewers to deliver the runoff to 66th Street and Lyndale. The developer's engineering firm, BRW, and the City's consultant, WSB, have recommended that the Grand Avenue sewer capacity be increased and also that a line running east to west along 66th Street be connected to the old McDonald's storm sewer which drains into Richfield Lake. The proposed sewer would provided sufficient capacity for aten-year storm and will be studied in the field during installation to improve overflow alternatives that minimize the chance of flooding. The estimated total project cost for the additional storm. sewer improvements is $142,900. The City has calculated its prorated share of cost of $35,000 based on established criteria. The City would use the storm sewer utility account to fund its share. It is proposed that $97,900 come from the HRA's Bonds of 1988. The remaining $10,000 would be funded by the developer. To consider the request, the HRA must first establish criteria. The criteria have been drafted by legal counsel to conform to the new law. A draft of the criteria has been attached which outlines the purpose, goals and objectives, specific criteria, and compliance and reporting requirements. Following the public hearing on the criteria, the criteria would be used to evaluate requests for assistance that exceed $25,000. When the request exceeds $100,000, a public hearing is required. Recommended Motion: Conduct a public hearing and adopt the business subsidy criteria. Basis of Recommendation: 1. Anew business subsidy law now regulates the procedures for approving the type of assistance being considered for Woodlake Centre. 2. Legal counsel has drafted criteria that complies with the law. 3. At their October 18, 1999 meeting the HRA set a public hearing date on this matter for November 15, 1999 and complied with the posting and notice requirements. Alternative Recommendation: 1. Continue the public hearing to gather more information. 2. Refuse to consider the matter. Discussion/Decision Mode: The improvements can be implemented once the criteria and supporting agreements are finalized and all statutory requirements have been met. Respectfully submitted, ~~.~~~ '~,Saman a Orduno ive Director SO:ds Attachments • HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE ADOPTION OF CRITERIA FOR PROVIDING BUSINESS SUBSIDIES WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City of Richfield, Minnesota, as part of its operations, provides economic assistance to individuals who are engaged in the development and redevelopment of land within the HRA's area of operation; and WHEREAS, pursuant to legislation enacted this year by the State of Minnesota, ("Business Subsidy Act"), the HRA is required to adopt criteria for awarding business subsidies prior to granting such assistance; and WHEREAS, the Business Subsidy Act further provides that the adoption of criteria must be preceded by a public hearing on the matter; and WHEREAS; a public hearing has been held after proper public notice. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. A public hearing on the adoption of business subsidy criteria has been held before the HRA on November 15, 1999 at 7:00 p.m. in the City Council Chambers at the Richfield City Hall located at 6700 Portland Avenue South, Richfield, Minnesota. 2. The Business Subsidy Criteria are adopted. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of November, 1999. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • ~ DRAFT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY BUSINESS SUBSIDY CRITERIA I. Purpose This document includes the criteria to be considered by the Richfield Housing and Redevelopment Authority ("Authority") to evaluate requests for business subsidies. It is the intent of the Authority in adopting-these criteria is to comply with Minnesota Statutes, Sections 116J.993-116J.995 (the "Act"). The Authority hereby adopts the definitions contained in the Act for application in the criteria. II. Goals and Objectives It is the Authority's intent to advance the following goals and objectives in granting business subsidies: a) All projects, by not later than the benefit date, must be consistent with Richfield's comprehensive plan and any other plan or guide for development of the community or a sub-area of the community. b) Business subsidies must be justified by evidence that the project cannot proceed without the benefit of the subsidy. If tax increment financing is used to grant a subsidy, the grantee must demonstrate compliance with all statutory requirements of the TIF Act, including the "but for" test. The grantee will be required to provide all documentation necessary for the Authority to make the requisite findings under the TIF Act and the Act. c) Grantees will be required to enter into an agreement with the Authority that is consistent with statutory requirements, including a commitment to continue the business at the site for a minimum of five years after the benefit date and compliance with the specific jobs and wages goals established for the project. III. Business Subsidy Criteria The Authority recognizes that every proposal is unique. Nothing in these criteria shall be deemed to be an entitlement or shall establish a contractual right to a subsidy. The Authority reserves the right to modify these criteria from time to time and to evaluate each project as a whole. The following criteria shall be utilized in evaluating a request for a business subsidy: a) Increase in tax base. While an increase in the tax base cannot be the sole grounds for granting a subsidy, the Authority believes it is a preferred condition for any subsidy. b) Jobs and Wages. It is Authority's intent that the grantee create livable wage jobs at the site. This may include jobs to be retained but only if job loss is imminent and demonstrable. JBD-169407 RC125-1 c) Economic Development. Projects should promote one or more of the following: 1) Encourage economic and commercial diversity within the community; 2) Contribute to the establishment of a critical mass of commercial development within an area; 3) Provide basic goods and services, increase the range of goods and services available or encourage fast-growing businesses; 4) Promote redevelopment objectives and removal of blight, including pollution cleanup; 5) Promote the retention or adaptive reuse of buildings of historical or architectural significance; 6) Promote additional or spin-off development within the community; 7) Encourage full utilization of existing or planned infrastructure improvements. IV. Compliance and Reporting Requirements. a) Any subsidy granted by the Authority will be subject to the requirement of a public hearing, if necessary, and must be approved by the Richfield city council b) It will be necessary for both the grantee and the Authority to comply with the reporting and monitoring requirements of the Act. ~~ • • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. sT 3 Agenda November 15,1999 Issue Statement: Conduct a public hearing on a business subsidy agreement to fund storm sewer improvements at Woodlake Centre, and authorize the related Second Amendment to the Contract for Private Redevelopment between the Housing and Redevelopment Authority and Richfield State Agency. 4 Background: In September the Housing and Redevelopment Authority (HRA) received a request from Richfield State Agency (RSA), the developer of Woodlake Centre, to cooperatively explore ways to finance unanticipated but needed storm sewer improvements. The HRA may only consider this request following the approval of business subsidy criteria which is an agenda item for the November 15 meeting. Storm sewer capacity is sufficient for the development at 66th Street and Lyndale Avenue in the old McDonald's parking lot. However, it was recently discovered that there is insufficient capacity within existing Grand Avenue storm sewers to deliver the runoff to 66th Street and Lyndale. With the parking ramp already in place, a direct line between the future central plaza area and the old McDonald's storm sewer is not available. The developer's engineering firm, BRW, and the City's consultant, WSB, have devised an alternative: increase the Grand Avenue sewer capacity and add a line running east to west along 66th Street that connects to the old McDonald's storm sewer which drains into Richfield Lake. The proposed sewer would provided sufficient capacity for aten-year storm and will be studied in the field during installation to improve overflow alternatives that minimize the chance of flooding. The estimated total project cost for the additional storm sewer improvements is $142,900. The City has calculated its prorated share of cost of $35,000 based on the City Engineer's determination of the City's responsibility within the proposed storm sewer system. The City would use the storm sewer utility account to fund its share. It is proposed that $97,900 come from the HRA's Bonds of 1988. The remaining $10,000 would be funded by the developer. A summary of TIF financial assistance provided to the project by the HRA follows: Eligible Project Cost Ramp Acquisition/Relocation Site Improvements (plaza, sidewalks and greenway) Affordability (12 of the rental "flats" at 70 % of median income) TOTAL Amount Contributed by HRA Actual Developer Cost $6,100,000 $7,966,000 $1,800,000 $2,392,561 $1,000,000 $1,666,241 $ 600,000 In-kind contribution $9,500,000 $12,024,802 All of the projected TIF has been provided to the developer by the HRA. However, as noted above, eligible project costs by the developer exceed TIF funds available. Thus, additional resources within the project are not available to cover unanticipated costs such as the necessary storm sewer improvements. A portion of the Bonds of 1988 could be made available for this item. (The 1999-00 budget proposes to expend those funds to establish a streetscape for Lyndale Gateway. However, the $97,900 could be used for this project while still providing adequate funds for the Lyndale streetscape.) The funds would be paid back over time with any excess increment generated by Woodlake Centre (favorable market conditions could result in a greater increment than projected). Ehlers, the HRA financial consultant, has evaluated the potential repayment and believes that a reasonable rate of appreciation returns the contribution over time. The second amendment to the redevelopment agreement with RSA, prepared by legal counsel, provides for the funding of the improvements and secures the return available. The assistance being proposed is now regulated by a new State law, and the HRA's business subsidy criteria. The HRA is required to determine that the proposed assistance meets a public purpose, that criteria has been established for providing business subsidies, and that there is an agreement for achieving the goals for the subsidy. This agreement takes the form of a Business Subsidy Agreement between Richfield State Agency and the HRA. Recommended Motion: 1. Conduct a public hearing and adopt a resolution, which authorizes a Business Subsidy Agreement for funding storm sewer improvements at Woodlake Centre; and 2. Adopt a resolution authorizing a second amendment to the Contract for Private Redevelopment for Urban Village to allow business subsidy agreements, and to provide the additional funding. Basis of Recommendation: 1. Developer construction costs have exceeded estimates and there are insufficient resources from within the project for unanticipated costs of this scale. 2. The proposed storm sewer improvement is needed and would have been an eligible expense if TIF resources were available. 3. Revenue from the Bonds of 1988 could be used for this project. 4. Potential exists for additional TIF based on reasonable increase in value after developer obligations, trust fund, and administrative costs of the HRA are paid. This additional TIF would be used to repay the expended Bond revenues. A representative from Ehlers, the HRA's financial consultant, will be available to discuss this matter at the HRA meeting. 5. The9developer has indicated a willingness to pay for up to a third of the improvement, $47,600. However, with an alternative funding source available to the HRA, a developer contribution of $10,000 leaves development funds available for cost overruns on the storm sewer or to cover part of the general construction costs and quality of finish that continue to exceed original estimates. 6. Business subsidy criteria has been established by the HRA to regulate the procedures for approving the type of assistance that the HRA is considering for Woodlake Centre. The City Council will also have to consider this matter. 7. Approval of a business subsidy agreement also requires that the Redevelopment Agreement coincides by authorizing the Second Amendment. Alternative Recommendation: 1. Seek additional resources from the City or developer. However, resources are limited. 2. Do not adopt an agreement or amend the contract for private redevelopment. However, the storm sewer improvements are required to prevent flooding. 3. Defer discussion of business subsidies to a future time and continue to evaluate funding options. Discussion/Decision Mode: The improvements can be implemented once the funding source and supporting agreements are finalized and all statutory requirements have been met. Respec fully submitted, ntha Orduno Executive Director SO:ds Attachment • HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE ADOPTION OF BUSINESS SUBSIDY AGREEMENT WITH RICHFIELD STATE AGENCY, INC. WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City of Richfield, Minnesota, as part of its operations, provides economic assistance to individuals who are engaged in the development and redevelopment of land within the HRA's area of operation; and WHEREAS, pursuant to legislation enacted this year by the State of Minnesota, ("Business Subsidy Act"), the HRA is required to enter into an agreement with any recipient of a business subsidy conforming to the requirements of the Business Subsidy Act prior to granting such assistance; and WHEREAS, the Business Subsidy Act further provides that the approval of such an agreement must be preceded by a public hearing on the matter in situations where the subsidy exceeds $100,000; and WHEREAS, Richfield State Agency, Inc. ("RSA") has requested that the HRA provide it with a business subsidy of approximately $97,900, to be used for certain utility work required in connection with RSA's Urban Village development; and WHEREAS, the HRA has evaluated the request based on Business Subsidy Criteria established by the HRA and ordered a public hearing concerning the matter. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. A public hearing on the approval of a business subsidy agreement with RSA has been held before the HRA on November 15, 1999 at 7:00 p.m. in the City Council Chambers at the Richfield City Hall located at 6700 Portland Avenue South, Richfield, Minnesota. 2. A business subsidy agreement in the amount of $97,000 is approved. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of November, 1999. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary HRA RESOLUTION NO. RESOLUTION APPROVING SECOND AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT URBAN VILLAGE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) and Richfield State Agency, Inc. ("Redeveloper") entered into a Contract for Private Redevelopment dated November 16, 1998 ("Contract"), describing the parties' respective responsibilities in redevelopment of the property described in Exhibit A of the Contract; and WHEREAS, in the Contract, the HRA agreed to provide certain tax increment financing assistance to the Redeveloper in order to make the redevelopment of the Redevelopment Property financially feasible; and WHEREAS, in order to implement a program of financial assistance that will make the redevelopment financially feasible, it is necessary to modify and amend the Contract; and WHEREAS, the Redeveloper and the HRA staff and consultants have prepared and presented to the Board a proposed amendment to the Contract and have fully informed the Board of its contents; and WHEREAS, the Board has reviewed the proposed Second Amendment, and is satisfied as to its form and content. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. The Second Amendment is hereby approved. 2. The Chairperson and Acting Executive Director are hereby authorized to take all actions and do all things necessary to carry out this approval. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of November, 1999. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary ! DRAFT NOT APPROVED BY HRA SUBJECT TO MODIFICATION BEFORE APPROVAL BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made and entered into as of this 15th day of November, 1999, by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a Minnesota public body corporate and politic, ("Grantor"), and RICHFIELD STATE AGENCY, INC. a Minnesota corporation, ("Grantee") WITNESSETH: 1. Grantor and Grantee are the parties to that certain instrument entitled Contract for Private Redevelopment dated November 16, 1998, and subsequently amended on September 20th, 1999 and November 15th, .1999 ("Contract"). 2. The November 15th, 1999 amendment to the Contract provides for financial assistance to the Grantee that constitutes a "business subsidy" for the purposes of the Business Subsidy Act (Chapter 243, Article 12, Laws 1999) ("Act"). 3. The Act requires that a business subsidy may not be provided until the parties have entered into a business subsidy agreement that complies with the requirements of the Act. 4. This Agreement is intended to constitute a business subsidy agreement for the purposes of the Act. NOW THEREFORE, in consideration of the mutual covenants contained herein and in the Contract, it is hereby stipulated and agreed by and between the parties hereto as follows. (a) Definitions. The terms used in this agreement shall have the meanings given them in the Contract and the Act unless a different meaning is clearly indicated. • (b) General Terms. The parties agree and represent to each other as follows: (1) The subsidy provided to the Grantee involves use of funds. currently available to the Grantor for the payment of costs incurred by the Grantee in performing certain utility work on the Redevelopment Property as more fully described in the Contract. The subsidy has an estimated value of $97,900. (2) The public purposes for the subsidy are as described in the Business Subsidy Criteria adopted by the Grantor. (3) The goals for the subsidy are:. to secure development of the Minimum Improvements on the Redevelopment Property; to maintain such improvements for at least 5 years as described in clause (6) below; and to create the jobs and wage levels in accordance with Section (c) hereof. (4) If the goals described in clause (3) are met, the Grantee shall have no obligation to repay the payments to the Grantee described in the Agreement (5) The subsidy is needed because site development costs make development of the Minimum Improvements financially infeasible without public assistance, all as determined upon approval of the TIF Plan. (6) The Grantee must continue operation of the Minimum Improvements for at least five years after the date of issuance of the certificate of completion. (7) The Grantee does not have a parent corporation. (c) Job and Wage Goals. Within two years after the date of issuance of the certificate of completion of the Minimum Improvements (the "Compliance Date"), the Grantee shall cause to be created at least five new full-time equivalent jobs on the Redevelopment Property (excluding any jobs previously existing in the State as of the date of this Agreement and relocated to this site) and shall cause the wages of the jobs created on the Redevelopment Property to be no less than $24,000, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Redeveloper's continuing obligations under sections (b)(6) and (e). The Grantor may, after a public hearing, extend the Compliance Date by up to a year, provided that nothing in this Section will be construed to limit the Grantor's legislative discretion regarding this matter. (d) Remedies. If the Grantee fails to meet the goals described in Section (b)(3), the Grantee shall repay to the Grantor upon written demand from the Grantor (a) a "pro rata share" of the amount of subsidy expended by the Grantor. The term "pro rata share" means percentages calculated as follows: if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the facility in accordance with Section (b)(6), 60 less the number of months of operation as the required facility (where any month. in which the facility is in operation for at least 15 days constitutes a month of operation), commencing on the date of the certificate of completion and ending with the date the facility ceases to be so operated as determined by the Grantor, divided by 60; and (iv) if any more than one of clauses (i) through (iii) apply, the sum of the applicable percentages ,not to exceed 100%. Nothing is this Agreement shall be construed to limit the Grantor's remedies otherwise available to it under this Contract. In addition to the remedy described in this Section and any other remedies available. to the Grantor for failure to meet the goals stated in Section (b)(3), the Grantee agrees and understands that it may not receive a business subsidy from the Grantor or any grantor (as defined in the Act) for a period of five years from the date of the failure or until the Grantee satisfies its repayment obligations under this Section, whichever occurs first. (e) Reports. The Grantee must submit to the Grantor a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2000 and continuing until the later of (i) the date the goals stated in Section (b)(3) are met; (ii) 30 days after expiration of the five-year period described in Section (b)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section (d). The report must comply with Section 116J.994, subdivision 7 of the Act. The Grantor will provide information to the Grantee regarding the required forms. If the Grantee fails to timely file any report required under this section, the Grantor will mail the Grantee a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Grantee fails to provide a report, the Grantee must pay the Grantor a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this section is $1,000. (f) Approval. This Agreement shall not be effective until approved by the City Council, which approval. shall be conclusively evidenced by the .City Council resolution of approval being afFxed to this Agreement. • • IN WITNESS WHEREOF, the Grantor has caused this Agreement to be executed in its corporate name by its duly authorized officers; and the Grantee has caused this Agreement to be executed all as of the date first above written. THE HOUSING AND. REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By lts Chair And by Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) On this day of ,before me, a Notary Public within and for said county appeared and , to me personally known, who being by me duly sworn, did .say that they are respectively the Chair and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a Minnesota public body corporate and politic, on behalf of the corporation. Notary Public • RICHFIELD STATE AGENCY, INC. By: Its: STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of by the of Richfield State Agency, Inc. a corporation under the laws of Minnesota by and on behalf of said corporation. • Notary Public • SECOND AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made and entered into this day of 1999 by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"), and RICHFIELD STATE AGENCY, INC., a Minnesota corporation (the "Redeveloper"). WHEREAS, The HRA and the Redeveloper entered into a Contract for Private Redevelopment dated as of November 16, 1998, and amended by First Amendment dated September 20, 1999, (collectively the "Contract"), and WHEREAS, The Redeveloper has requested, and the HRA has agreed. to provide the Redeveloper with certain additional financial assistance to address redevelopment costs which could not have been previously anticipated, and WHEREAS, the parties desire to amend the Contract so as to provide for such additional assistance. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby represent, covenant and agree with the other as follows: 1. Article XI of the Contract is hereby amended by inserting therein the following new Section 11.8: Section 11.8. Business Subsidy Agreement. In addition to the assistance otherwise provided for in this Agreement, the Redeveloper shall also receive a Business Subsidy to cover the cost of certain utility relocation and resizing in the amount of $97,900. The Business Subsidy shall be paid in accordance with the provisions of a separate Business Subsidy Agreement to be entered into by the parties in accordance with the provisions of the Business Subsidy Act (Chapter 243, Article 12, .Laws, 1999) ("Act"). The Redeveloper's obligation to repay all or part of the Business Subsidy will be subject entirely to the terms of the Business Subsidy Agreement, except that the Redeveloper agrees that any Tax Increment remaining after the Taxable Note and the. Tax Exempt Note have been paid, shall be applied to repay any part of the Business Subsidy not previously repaid. 2. In all other respects the Contract remains unaltered and in full force and effect according to its terms. • IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA ey: Its Chair By: Its: Executive Director RICHFIELD STATE AGENCY, INC. By: Its: STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN .The foregoing instrument was acknowledged before me this day of 1999, by and , the Chairperson and Executive Director of The Housing .and Redevelopment Authority in and for the City of Richfield, Minnesota. Notary Public r~ r~ STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 1999, by the of Richfield State Agency, a Minnesota corporation, on behalf of the corporation. Notary Public Telephone (6121861-7355 O ~~~ ~. 8618305 INSURANCE SERVICES 6625 LYNDALE AVENUE SOUTH • RICHFlELD BANK BUILDING • RICHFlELD, Ad11NNEbSOTA,~554?139 9 9 cto er , Mr. Bruce Nordquist City of Richfield 6700 Portland Avenue Richfield MN 55423-2599 RE: Storm .Sewer Dear Bruce: As you are aware, we have been dealing with the issue of the storm sewer which must be installed on vacated Grand Avenue and along ...66th St~ezt. The present proposal from the City is that $35,000 of the approximately $140,000 cost will be paid by the City. We have requested through the HRA and the City that this matter be reviewed as to the cost- sharing. Mr. Atkinson and the other City officials have-cooperated with us in attempting to solve the problem but we do believe that. there should be additional City participation. According to BRW, the contribution of water to the storm sewer on Grand is approximately one-third the new development and two-thirds off- site.. On 66th. Street, the contribution from off-site may even. be greater,. We would ask that you consider a minimum cost-sharing on the same basis of"two-thirds by the City and one-third by the development. The necessity of ,the replacement of the storm-sewer came as somewhat of a surprise to everyone involved-with the development. It was not planned -for when the original. plans for the development of the site-were formed. There obviously was no budget made for these items and it further exacerbates a difficult budget situation at the site. As the developer, RSA is attempting to make the entire-site a special place. Each extra such as this causes cuts in other items. We have also noted. that the City has been much more involved with the 76th and Lyndale site as to street improvements. The paper reported that approximately $623,000 was made available to the development for . that site. To our knowledge, there have been no amounts made available. a`.G ::.iiY oit8 fvi SJilti'i. 4a`lLUaatB .Ci ui:i.ilur i~:u:3. it +:C.L.id :3@Cu: ivgi^.~l that some of those monies would be made available, particularly since a .Tot of the funds have been generated from the Lyndale HUB .tax increment district. While we recognize the necessity of the work, we would ask that the City participate at a greater level. We would be available to meet with -you or any of the City officials at your convenience. We will await. your further response. Yours very truly, RICHFIELD STATE AGENCY, INC. - BY ~~~\~~.~ S'~iven L'. Kirchner, sx\LTx\ Ricxz President S HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. ~I~ -~ Agenda November 15, 1999 Issue Statement: Public hearing and authorization to sell 6915-13th Avenue to Asche and Associates for residential development. Background: The Housing and Redevelopment Authority (HRA) acquired the property at 6915-13th Avenue under the Richfield Rediscovered Program. It is proposed that the HRA sell the 60 x 133 lot to Asche and Associates for the development of a new single family home. The new home would have three finished bedrooms, two baths, a double car garage, and would have an end value of approximately $140,000. It will have almost 1,700 finished sq. ft. The recommended motion requests that the HRA sell to a small developer, Asche and Associates. This developer builds or rehabilitates approximately one home per year, and has worked in other suburban communities. Recommended Motion: Following a public hearing, adopt the resolution authorizing the sale of 6915-13th Avenue to Asche and Associates. Basis of Recommendation: 1. Asche and Associates is building under the program for the first time. They have i~ provided evidence of financial ability. 2. The HRA acquired the site for the Richfield Rediscovered Program. 3. The terms of the development agreement has been negotiated and are in conformance with program guidelines. 4. Notice of public hearing on sale of the properties was published on November 3, 1999 in the Sun-Current. Alternative Recommendation: Do not proceed with the development agreement with the recommended builder and direct staff to find another buyer. Discussion/Decision Mode: Closing would occur in December with construction starting soon afterwards, weather permitting. The clearance work is completed. Re ully submitted, Samantha Orduno Executive Director SO:ds Attachments HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6915-13TH AVENUE TO ASCHE AND ASSOCIATES WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the-HRA, said real property being described as follows: Address Legal Description 6915-13th Avenue Lot 7, Block 2, Richlands Addition WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchaser of the described property has been identified and a development agreement negotiated as follows: Performance Address Sale Price Security Builder 6915-13th Avenue $35,000 $35,000 Asche and Associates ;,~ WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield: A public hearing has been held and 6915-13th Avenue is authorized to be sold for $35,000 to Asche and Associates. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sales to Asche and Associates. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of November, 1999. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary C s • W Z W Q H c+~ T T 0. v V • • ..~ W W .~ Z a J W W J Z 0 ~. W N • -d- I ~ - I ~ I I ~ _ I I I I , I I I HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. '75 Agenda November 15, 1999 Issue Statement: Consideration of a Supplement to the Contract for Private Redevelopment with Richfield Senior Housing, Inc.; Lyndale Gateway. Background: At the October 18 meeting, the Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment (Contract) with Twin City Christian Homes dba Richfield Senior Housing, Inc. (RSH). This contract related to RSH's development of a senior apartment building and attached offices on the east side of Lyndale Avenue between 76th and 77th Streets. At the time that the Contract was approved, there were several outstanding issues related to the construction of public improvements. Article V, Section 5.1(g) of the Contract states that the nature 'and cost allocation of the public improvements was to be resolved within 30 days. The Supplement to the Contract which is being considered addresses the previously unresolved public improvements issues. This supplemental agreement will be made available to the HRA prior to the meeting. Some of the terms included in this Supplement can be generalized as follows: • RSH will pay for half of the cost of removal of the Garfield Avenue curbs and roadway (it is anticipated that Ron Clark Construction will pay the other half). • RSH will pay for the reconstruction of the curb on the west side of Garfield Avenue. • The HRA will pay for the construction of the new asphalt roadway on Garfield Avenue by utilizing revenues from the Bonds of 1988. • The City will study the intersection of Lyndale Avenue and 76th Street and will make improvements as necessary. • The HRA will construct and pay for the "streetscape improvements" on the east side of Lyndale Avenue; this would include sidewalks, lighting, landscaping, benches, etc. (Similar treatment of the west side of Lyndale Avenue will be an element of the argeement with CSM.) Recommended Motion: Adopt a motion approving the proposed Supplement to the Contract for Private Redevelopment. Basis of Recommendation: 1. The HRA approved the associated Contract for Private Redevelopment on October 18, 1999. 2. That Contract stipulated that an agreement on the nature and cost allocation of the public improvements was to be resolved within 30 days. Alternative Recommendation: 1. Do not approve the Supplement and amend the Contract to allow more time to reach resolution on the public improvements issues. 2. Approve the supplement with modifications. Discussion/Decision Mode: The City of Richfield's Public Works Director and City Attorney have reviewed the terms of this proposed supplement. submitted, Orduno Director SO:ds • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. "7 (p Agenda November 15, 1999 Issue Statement: Consideration of a resolution correcting the list of parcels to be included in the Richfield Rediscovered 1999 Tax Increment Financing District. Background: On September 20, 1999, the Housing and Redevelopment Authority (HRA) approved the establishment of the Richfield Rediscovered 1.999 Tax Increment Financing District (the "TIF District") and creation of the Tax Increment Financing Plan (the "Plan") related thereto. Subsequently, the City Council held a public hearing and approu~d the establishment of the District and Plan on October 11, 1999. In preparation for parcel certification by the County, it was discovered that the .incorrect parcel list was attached to the Pfan. Certain parcels listed within the Plan were already certified by the County under previously established Plans. The following parcels currently need to be deleted from the Plan before certification is requested from the County: Address 6915 13th Avenue 7133 Lyndale Avenue 7025 Nicollet Avenue 6855 Penn Avenue PID Number 26-028-24-43-0064 34-028-24-22-0055 34-028-24-12-0022 28-028-24-33-0146 As parcels are being eliminated, and not added to the Plan, and because the net tax capacity of the eliminated parcels has not changed since the approval date, this action will not require a formal public hearing or further notice to the County or School District. However, the City Council will be requested to also adopt a resolution correcting the parcel list at their meeting of November 22, 1999. The corrected Plan is attached for your reference. The new parcel list is shown on page 4-2. The map at Appendix A has also been corrected to reflect the elimination of the four referenced parcels. Recommended Motion: Adopt a resolution, which corrects the tax increment parcel list for the Richfield Rediscovered 1999 Tax Increment Financing District. Basis of Recommendation: 1) The HRA approved the establishment of the Richfield Rediscovered 1999 Tax Increment Financing District and Plan relating thereto on September 20, 1999. 2) The City Council held a public hearing and approved the establishment of the Richfield Rediscovered 1999 Tax Increment Financing District and Plan relating thereto on October 11, 1999. 3) The Tif Plan requires correction to the parcel list before the County Auditor may certify the parcels. 4) The HRA's development consultant, Ehlers and Associates, in conjunction with legal counsel, Kennedy & Graven, Chartered, have reviewed the issue and determined that no public hearing or further notice to the County or School District is required to undertake this Plan clarification. Alternative Recommendation: 1. Delay action until a future time. Discussion/Decision Mode: The proposed correction to the parcel list will be acted upon by the City Council on November 22, 1999. Approval of the resolutions by both the HRA and City Council will allow the tax increment parcels to be certified by the County Auditor so that parcels may be made available for purchase, site clearance, and new, single family home construction opportunities. • Respec ully submitted, a tha Orduno Executive Director SO:ds Attachment • HRA RESOLUTION NO. RESOLUTION CORRECTING THE LIST OF PARCELS TO BE INCLUDED IN THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT WHEREAS, on September 20, 1999, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") approved the Tax Increment Financing Plan (the "Plan") for the Richfield Rediscovered 1999 Tax Increment Financing District (the "District") within the Richfield Redevelopment Project Area (the "Project Area"); and WHEREAS, as of the date hereof, the District has not been certified with the County Auditor of Hennepin County; and WHEREAS, the Plan included certain parcels that the HRA did not intend to include in the District; and WHEREAS, the HRA desires by this resolution to correct the Plan, as approved by the HRA on September 20, 1999, by deleting the following parcels: Address 6915 13th Avenue 7133 Lyndale Avenue 7025 Nicollet Avenue 6855 Penn Avenue PID Number 26-028-24-43-0064 34-028-24-22-0055 34-028-24-12-0022 28-028-24-33-0146 WHEREAS, aside from the above-described amendment, the HRA desires the Plan, as corrected to be certified with the County Auditor of Hennepin County as otherwise approved on September 20, 1999. NOW, THEREFORE, BE IT RESOLVED by the HRA that the HRA's staff and Ehlers &Associates, Inc. shall be authorized to take such action as is necessary to cause the County Auditor of Hennepin County to certify the Plan as corrected herein. Approved by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, this 15th day of November, 1999. Attest: Michael Sandahl, Secretary Thomas E. Harms, Chair l.~ Draft as of October 28, 1999 Draft for HRA Review MODIFICATION TO THE REDEVELOPMENT PLAN FOR 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; AND THE TAX INCREMENT FINANCING PLAN FOR THE ESTABLISHMENT OF RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING. DISTRICT. (a redevelopment district) • RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD HENNEPIN COUNTY STATE OF MINNESOTA Public Hearing: October 11, 1999 Adopted: October 11, 1999 HRA Review Clarification: November 15, 1999 City Council Review Clarification: November 22, 1999 Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville, Minnesota 55113-1105 Phone: (651) 697-8500 Fax: (651) 697-8555 E-mail: info@ehlers-inc.com Web Site: www.ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) SECTION I - MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECTAREA ...................... 1-1 Foreword ........................................................:...........1-1 Subsection C. Description of Redevelopment Project Area ......................... 1-1 Subsection G. Acquisition and Relocation Activities . ........... .............. 1-2 SECTIONII - MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT .......................... 2-,1 Foreword ....................................... ........... ...............2-1 SECTIONIII - MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ..................... 3-1 Foreword ............................................... ....................3-1 SECTIONIV -TAX INCREMENT FINANCING PLAN FOR RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT . ..................................... 4-1 Subsection 4-1. Foreword ................................................. . 4-1 Subsection 4-2. Statutory Authority ......................................... . 4-1 Subsection 4-3. Statement of Objectives ......................................... 4-1 Subsection 4-4. Redevelopment Plan Overview .................... .... ........ 4-1 Subsection 4-5. Subsection 4-6. Legal Description of Property. in Richfield Rediscovered 1999........... Classification of Richfield Rediscovered 1999 TIF District ............. 4-2 4-3 Subsection 4-7. Original Tax Capacity and Tax Rate ..........:.................... 4-4 Subsection 4-8. Estimated Captured Net.Tax Capacity Value/Increment ................ 4-5 Subsection 4-9. Property To Be Acquired ...................................:.... 4-5 Subsection 4-10. Uses of Funds ................................................. 4-5 Subsection 4-11. Sources of Revenue/Bonded Indebtedness .......................... 4-6 Subsection 4-12. Definition of Tax Increment Revenues ............................. 4-7 Subsection 4-13. Duration of Tax Increment Financing Richfield Rediscovered 1999 ...... 4-7 Subsection 4-14. Estimated Impact on Other Taxing Jurisdictions ...................... 4-7 Subsection 4-15. Notification of Prior Planned Improvements ........................ 4-8 Subsection 4-16. Administration of Tax Increment Financing Richfield Rediscovered 1999 . 4-8 Subsection 4-17. Municipal Approval and Public Purpose ............................ 4-8 Subsection 4-18. Fiscal Disparities Election ....................................... 4-9 Subsection 4-19. State Tax Increment Financing Aid ................................ 4-9 Subsection 4-20. County Road Costs ............................................ 4-10 .Subsection 4-21. Summary ...................................................4-10 APPENDIX A -BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE RICHFIELD REDISCOVERED 1999 TIF DISTRICT ...................... A-1 APPENDIX B -LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT .. B-1 APPENDIX C -ESTIMATED CASH FLOW FOR THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT .......................................... C-1 REDEVELOPMENT QUALIFICATIONS FOR THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT ........................................ D-1 • • SECTIONI MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA Foreword The following text represents a Modificationto the RedevelopmentPlan for Richfield Redevelopment Project Area. This modification represents a continuation ofthe goals and objectives set forth in the Redevelopment Plan for Richfield Redevelopment Project Area. Generally, the substantive changes include modifying the boundaries of Richfield Redevelopment Project Area as specified below. For further information, a review of the RedevelopmentPlan for Richfield Redevelopment Project Area, adopted July 16, 1990, is recommended. It is available in the Community Development Department ofthe City of Richfield. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Richfield Redevelopment Project Area. Subsection C. Description of Redevelopment Project Area The modified boundary lines for Richfield Redevelopment Project Area are as follows: Beginning at the intersection of the north city boundary line of Richfield and the center line of Trunk Highway 77, thence southerly along said line to its intersection with the southern city boundary.. Thence,. westerly, along said city boundary, to its intersection with the center line of Penn Avenue.. Thence, northerly; along said center line to its intersection with the center line- of 78d' Street. Thence, westerly more or less along said center line to its intersection with the center line of Thomas Avenue.: Thence, northerly along said: center line to its intersection with the center line of 77~' Street: Thence, easterly along said center line to its:. intersection with the center line of Sheridan .Avenue.. Thence, northerly along. said center line to its intersection with the center line of 76d' Street. Thence, easterly along said center line to its intersection with the center line of Knox Avenue. Thence, southerly along said center line to its intersection with the north lot line of Tract A, Registered Land Survey No. 1037. Thence, easterly along said lot line to its intersection with the center line of Interstate 35W. Thence, northerly along said center line to its intersection with the center line of 73rd Street. Thence, westerly along said center line to its intersection with the center line of Penn Avenue. Thence, southerly along said center line to its intersection with the center line of 74d' Street. Thence, westerly along said center line to its intersection with the center line of Sheridan Avenue. Thence, southerly along said center line to its intersection with the center line of 76`~ Street. Thence, westerly along said center line to its intersection with the center line of Xerxes Avenue. Thence, northerly along said center line. to its intersection with the center line of West 66d' Street. Thence, easterly along said center line to its intersection with the center line of Queen Avenue. Thence, northerly, more or less, along said center line to its intersection with the north line of 65d' Street. Thence, westerly along said north line to its intersection with the west lot line of Lot 2, Block 1, Harry Tickner's Subdivision. Thence, northerly along said lot line, as extended, to the south right-of--way line of Trunk Highway 62. Thence, easterly along said south right-of- way line to its intersection with the center line ofthe west roadway of Pleasant Avenue. Thence, southerly along said center line to its intersection with the center line of 63rd Street. Thence, westerly along said center line to its intersection with the center line of Harriet Avenue. Thence, southerly along said center line to its intersection with the center line of 64-1/2 Street. Thence, easterly along said center line to its intersection. with the west lot line of Lot 2, Block 6, Lyndale Oaks Addition. Thence, southerly along said lot line to the north line of Hauser's Second Addition. Thence, easterly along said north line to its intersection with the Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area A 1-1 east line of Pleasant Avenue. Thence, continuing easterly along the north boundary of PID No. 27-028-24- 24-0005 and PID No. 27-028-24-24-0004 to its intersection with the east line of Pillsbury Avenue. Thence, northerly along said east line to the south block line of Block 6, Rearrangement of Nicollet Homes Second Addition. Thence, continuing east along said south block .line of Lot 6, through the south lot line of Lot 7 and to the middle of Block 8, Rearrangement of Nicollet Homes Second Addition. Thence, northerly along the east lot lines of Lots 6, 7, 8, 9, and 10, Block 8, Rearrangement of Nicollet Homes Second Addition to its intersection with the center line of 64~' Street. Thence, easterly along the said center line to its intersection with the west line of Lot 15, Block 8, Town's Edge Addition. Thence, southerly along said west line past Lots 14, 13, 12 and 11, Block 8, Town's Edge Addition to its intersection with the east line of First Federal Richfield Addition. Thence, southerly more or less along said east line to the center line of 65`'' Street. Thence, easterly along said center line to the enter line of 1st Avenue. Thence, southerly along said center line to the center line of 66~' Street. Thence, easterly along said center line to the center line of 11 ~ Avenue. Thence, northerly along said center line to its intersection with the south right-of--way line of Trunk Highway 62. Thence, easterly along said south right-of--way to its intersection with the north city boundary line of Richfield. Thence, easterly to point of beginning. Subsection G. Acquisition and Relocation Activities Acquisition In furtherance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in previous years to identify property for acquisition. As in the past, residential property owners were contacted and surveyed to determine (a.) whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional. means of obtaining. candidate properties were made by (a.) property owners contacting the HRA requesting that their property be considered for the program and (b.) refenrals by the City's health and inspections department. Candidate properties were further evaluated for program eligibility and inspected. The properties identified for acquisition are listed in Appendix A of the Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District. Relocation The HRA accepts as binding its obligations under provisions of federal and state law (M.S., Chapter f l ~ for relocation. • Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area A 1-2 SECTIONII MODIFICATION TD THE TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT Subsection 2-1.Foreword The City of Richfield ("City"), the Richfield Housing and Redevelopment Authority (the "HRA"), staffand consultants have prepared the following information to expedite a modification to the Tax Increment FinancingPlan forthe Gramercy Redevelopment Tax Increment FinancingDistrict("the GramercyDistrict"), a redevelopment tax increment financing district, located in the Richfield Redevelopment Project Area.. The following Modification represents a modification to the budget to allow for additional expenditures and the issuance of debt for the purpose of supporting the Richfield Rediscovered activity. The primary activity will take place in the Richfield Rediscovered 1999 Tax Increment Financing District, to be created on October 11, 1999. This plan is being amended to incorporate modifications to the following sections. Subsection 2-10. Uses of Funds The budget for Gramercy is amended as follows: Richfield Original Redis. Uses of Funds Gramercy Project 2 Proiect 3 Total 1999 As Amended Land Acquisition $1,425,000. $2,903,520 $4,277,537 $8,606,057 $1,820,000 $10,426,057 Demo./Relocation $85,000 $755,000 $800,000 $1,640,000 $280,000 $1,920,000 Rehabilitation: $1,120,000 $1,120,000 Site Work $623,093 $360,000 $400,000 $1,383,093. $1,383,093 Utilities/Roads/Walks $98,850 $750,000 $800,000 $1,648,850 $1,648,850 Permits $872,000 $500,000 $600,000 $1,972,000 $1,972,000 Interest $14,000,000 $1,500,000 $15,500,000 Admin.(up to 10%) 3 250 000 $107.586 57 586 TOTAL $3,103,943 $5,268,520 $6,877,537 $32,500,000 $4,827,586 $37,327,586 Subsection 2-11. Sources of RevenueBonded Indebtedness The City intends to issue bonds for this activity. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $37,400,00 without a modification to the Plan pursuant to applicable statutory requirements. The sources of funds for the Gramercy District are amended as follows: • Richfield HRA Modification to the Tax Increment Financing Plan for the Gramercy Tax Increment Financing District 2-I r • s Sources of Funds Tax Increment Local Contribution Land Sales Other Tax Increment TOTAL Original Total Richfield Redisc. 1999 Amended Total $30,875,000 $1,075,860 $31,950,860 $1,625,000 $53,793 $1,678,793 $840,000 $840,000 $2,857,927 $2,857,927 $32,500,000 $4,827,580 $37,327,580 Richfield I-IRA Modification to the Tax Increment Financing Plan for the Gramercy Tax Increment Financing District 2-2 • SECTION Ill MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT • • Subsection 3-1.Foreword. The City of Richfield ("City"), the Richfield Housing and Redevelopment Authority (the "HRA"), staff and consultants have prepared the following information to expedite a modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District, a redevelopment tax increment financing district, located in the Richfield Redevelopment Project. Area. The following Modification represents a modification to the budget to allow for additional expenditures and the issuance of debt for the purpose of supporting the Richfield. Rediscovered activity. The primary activity will take place in the Richfield Rediscovered 1999 Tax Increment Financing District, to be created on October 11, .1999. This plan is being amended to incorporate modifications to the following sections. Subsection 3-10. Uses of Funds The budget for Urban Village is amended as follows: Uses of Funds Original Total Land Acquisition Site Improvements Demo./Relocation $2,000,000 2,000,000 Public Improvements - public road Public Utilities -parkway Trust Fund Rehabilitation Interest Admin (un to I O%) TOTAL 7,000,000 2,000,000 2,000,000 8,750,000 2.500.000 $26,250,000.0 Subsection 3-11. Sources of Revenue/Bonded Indebtedness $280,000 $1,120,000 $1,500,000 10$ 7.586 $4,827,586 $7,000,000 $2,000,000 $2,000,000 $1,120,000 $10,250,000 $2,607,586 $31,077,586 The City intends to issue bonds for this activity. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax .increment financing will not exceed $31,100,000 without a modification to the Plan pursuant to applicable statutory requirements. The sources of funds for Urban Village Tax Increment Financing District are amended as follows:. Richfield IiRA Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District Richfield Redis. 1999 $1,820,000 As Amended $3,820,000 $2,000,000 $280,000 3-1 5~ • Sources of Funds Tax Increment Local Contribution Land Sales Other Tax Increment TOTAL Original Total $25,000,000 $1,250,000 $26,250,000 Richfield Redisc. 1999 $1,075,860 $53,793 $840,000 $2.857.927 $4,827,580 Amended Total $26,075,860 $1,303,793 $840,000 .$2.857,927 $31,077,580 Richfield HRA Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District 3-2 . SECTIONIV TAX INCREMENT FINANCING PLAN FOR RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT. Subsection 4-1.Foreword The City of Richfield ("City"), the Richfield Housing and Redevelopment Authority (the "HRA"), staff and consultants have prepared the following information to expedite the establishment of the Richfield . Rediscovered 1999 Tax Increment Financing District ("Richfield Rediscovered 1999"), a redevelopmenttax increment financing district, located in Richfield Redevelopment Project Area. Subsection 4-2.Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City and HRA have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.001 through 469.047, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This Section contains the Tax Increment Financing Plan (the "Plan") for 1ZichfieldRediscovered -1999.Other- relevant information is contained in .the Modification to the Redevelopment Plan for Richfield Redevelopment Project Area. Subsection 4-3.Statement of Objectives • Richfield Rediscovered 1999 consists of28 parcels of land and adjacentand internalrights-of-.way. Richfield Rediscovered 1999 is created to facilitate the demolition of substandard houses and enable home buyers to construct new houses on the lots through a program known as Richfield Rediscovered, which is administered , by the HRA. The funding, as currently proposed, allows for the potential construction of up to 28 new homes. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for Richfield Redevelopment Project Area. The activities contemplated in the present Modification to the Redevelopment Plan and the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to .occur over the life of Richfield Rediscovered 1999 and Richfield Redevelopment Project Area. Subsection 4-4.Redevelogment Plan Overview Property to beAcquired -Selected property located within RichfieldRediscovered 1999 may be acquired by the City or HRA and is further described in this Plan. 2. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City or HRA may sell to a developer selected properties that they may acquire within Richfield Rediscovered 1999. 3. The City or HRA may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public streets work Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-I within Richfield Rediscovered 1999. • Subsection 4-S.Legal Description of Property in Richfield Rediscovered 1999 Richfield Rediscovered 1999 encompasses all property and adjacent rights-of--way identified by the parcels listed below. Please see the map in .Appendix A for further information on the location of Richfield Rediscovered 1999. PID Number Address 6220 Clinton Avenue 27-028-24-11-0001 6608 Stevens Avenue 27-028-24-42-0073 6625 3`d Avenue 27-028-24-41-0084 6637 5~' Avenue 27-028-24-41-0015 6800 Pillsbury Avenue 27-028-24-34-0016 6744 Blaisdell Avenue 27-028-24-31-0007 6833 Park Avenue 26-028-24-33-0086 6833 Grand Avenue 27-028-24-33-0070 7036 1s1 Avenue 34-028-24-12-0015 7241 2nd Avenue 34-028-24-13-0150 7316 Clinton Avenue 34-028-24-14-0086 7301 Garfield Avenue 34-028-24-23-0129 7544 2"d Avenue 34-028-24-42-0104 7333 Emerson Avenue 33-028-24-13-0090 6928 14~'Avenue 26-028-24-43-0069 6315 Newton Avenue 28-028-24-22-0097 6310 Irving Avenue 28-028-24-21-0075 6306 Irving Avenue 28-028-24-21-0126 6320 Girard Avenue 28-028-24-12-0033 6645 Knox Avenue 28-028-24-31-0032 6800 Logan Avenue 28-028-24-33-0001 6912 Penn Avenue 29-028-24-44-0161 6933 Queen Avenue 29-028-24-44-0170 6833 Penn Avenue 28-028-24-33-0045 6929 Queen Avenue 29-028-24-44-0171 6901 12d' Avenue 26-028-24-43-0082 6945 Clinton Avenue 27-028-24-44-0108 7615 Pillsbury Avenue 34-028-24-34-0045 Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-2 Subsection 4-6.Classification of Richfield Rediscovered 1999 Tax Increment Financing District The City and HRA, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.179, as amended, inclusive, finds that Richfield Rediscovered 1999, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authorityfinds by resolution that one of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, or other improvements and more than SO percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or (2) The property consists of vacant,. unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities or excessive or vacated railroad rights-of--way. (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements oracombination ofdeficiencies in essential utilities andfacilities,7ightand ventilation, fire protection including adequate egress, layout and condition of .interior. partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c) A building is not structurally-substandard if it is in compliance with the building code applicable to new buildings or-could be modified to satisfy the building code at a cost of less than 1 S percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence,-such as the size, type, and age of the building, the average cost ofplumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... (e) For purposes of this subdivision, aparcel is not occupied by buildings, streets, utilities or other improvements until 1 S percent of the area of the parcel contains improvements. (~ For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire are of the district must satisfy paragraph (a). In meeting the statutory criteria described above, the City and I-IlZA rely on the following facts and findings: Richfield I-IRA Tax Increment Financing Plan for Richfteld Rediscovered 1999 Tax Increment Financing District 4-3 ^ Richfield Rediscovered 1999 is a redevelopment district consisting of 28 parcels. ^ An inventory of the. parcels shows that at least 70 percent of the area ofRichfield Rediscovered 1999 consists of parcels in Richfield Rediscovered 1999 that are occupied as defined in the TIF Act. An inspection ofthe buildings located within Richfield Rediscovered 1999 finds that more than 50 percent ofthe buildings are structurally substandard as defined in the TIF Act. Because Richfield Rediscovered 1999 is a scattered site redevelopment district, each parcel qualifies individually. (See Appendix D) Subsection 4-7.Original Tax Capacity and Tax Rate Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for Richfield Rediscovered 2000 is based on the market values placed on the property by the assessor in 1999 for taxes payable 2000. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 1999) the amount by which the .original value has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court-ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in connection with. previously issued building permits. In any year in which the current Net Tax Capacity value ofRichfield Rediscovered 1999 declines below the -- ONTO, no value will be captured and no tax increment will be payable to the City or I-IRA. It is expected that the. original local tax rate for Richfield Rediscovered 1999 will be the local tax rate for taxes payable 2000. The estimate below is payable1999. The Original Tax Capacity and"the Original-Local Tax Rate for Richfield Rediscovered 1999 appear in the table below. Original Tax Capacity Value $4,550 Percent Retained by City 100% Original Local Tax Rate 1.50904 Subsection 4-8.Estimated Captured Net Tax Capacity Value/Increment Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of Richfield Rediscovered 1999, within Richfield Redevelopment Project Area, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The City and HRA request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2001. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capaci upon Completion of Project (P~C) $48,538 Richfield I3RA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-4 Original Estimated Net Tax Capacity (ONTC) 4.550 Estimated Captured Tax Capacity (CTC) 43,988 Estimated Annual Tax Increment (CTC x Local Tax Rate) $66,380 Subsection 4-9. Property To Be Acquired The City or HRA may acquire any parcel within Richfield Rediscovered 1999 including interior and adjacent street rights of way. The parcels are listed in Subsection 2-5. Any properties identified for acquisition will be acquired by the City or I-IRA :only in order to accomplish one or more of the following: carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. 2. The following are conditions under which properties not designated to be acquired maybe acquired: The City or HRA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken only when there isassurance offending tofinance-the acquisition and related costs. Subsection 4-10. Uses of Funds Currently under consideration for Richfield Rediscovered 1.999 is a proposal to facilitate the acquisition and demolition of substandard houses and enable home buyers to construct new houseson the lots.. The City.and HRA have determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property. in and around Richfield Rediscovered 1999. To facilitate the establishment and development or redevelopment of Richfield Rediscovered 1999, this Plan authorizes. the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Richfield Rediscovered 1999 over the life of the district is outlined in the following table. Uses of Funds Totat Land Acquisition $1,820,000 Site Preparation/Demolition/Grading 280,000 Rehabilitation 1,120,000 Interest 1,500,000 Administrative Costs (up to 10%) 107,586 TOTAL $4,827,580 Estimated costs associated with Richfield Rediscovered 1999 are subject to change. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within Richfield Rediscovered 1999 will be spent on activities related to development or redevelopment outside of Richfield Rediscovered 1999 but within. the boundaries of Richfield Redevelopment Project Area, (including administrative costs, which are considered Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-5 to be spent outside of Richfield Rediscovered 1999) subject to the limitations as described in this Plan. Subsection 4-11. Sources of RevenueBonded Indebtedness Acquisition and site preparation costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City or HRA reserves the right to use other sources of revenue legally applicable to the Modification to the Redevelopment Plan and the Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale. of land, other contributions from the developer and investment income, to pay for. the estimated public costs. The City or HRA reserves the right to incur bonded indebtedness or other indebtedness as a result ofthe Plan. As presently proposed, the project may be financed by a bond issue or loans. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use oftax increment financing will not exceed $4,827,580 without a modification to the Plan pursuant to applicable statutory requirements. This provision does not obligate the City or HRA to incur debt. The City or I-IRA may issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City or I-IIZA may also finance the activities to be undertaken pursuant to the Plan-through loans from funds of the City or HRA. The estimated sources of funds for Richfield Rediscovered 1999 over the life of the district are contained in- the table below. _. Sources of Funds Total Tax Increment $1,075,860 Land Sales 840,000 Other Tax Increment 2,857,927 Local Contribution 53,793 TOTAL $4,827,580 Subsection 4-12. .Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Subsection 4-13. Duration of Tax Increment Financing Richfield Rediscovered 1999 Richfield I-IRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-6 Pursuant to M.S.> Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration. of Richfield Rediscovered 1999 must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of Richfield Rediscovered 1999 will be 25 years from the date of receipt of the first increment by the City or HRA-..The date of receipt by the City of Richfield of the first tax increment will be approximately 2001. Thus, it is estimated that Richfield Rediscovered 1999, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2026, or when the Plan is satisfied. The City or HRA does reserve the right to decertify Richfield Rediscovered 1999 prior to the legally required date. Subsection 4-14. .Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes construction which would have occurred without the creation of Richfield Rediscovered 1999. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding, the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred without the assistance ofthe City or HRA, the following estimated impact of Richfield Rediscovered`1999 would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 1998/1999 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Project Completion to Entity Total Hennepin County . 925,993,876 43,988 0.0048% I:S.D. No. 280 24,774,702 43,988 0.1776% City of Richfield 17,777,731 43,988 0.2474% IMPACT ON TAX RATES _ 1998/1999 Percent Potential Extension Rates of Total CTC Taxes Hennepin County 0.409940 27.17% 43,988 18,032 LS.D. No. 280 0.721270 47.80% 43,988 31,727 City of Richfield 0.285940 18.95% 43,988 12,578 .Metro 0.060350 4.00% 43,988 2,655 Other 0.031540 2.09% 43,988 1,387 Total 1.509040 100.00% 66,380 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1998/Pay 1999 rate. The total net capacity for the entities listed above are based ` on Pay 1999 figures. Richfield Rediscovered 1999 w ill be certified under the actua l 1999/200 rates, which were unavailable at the time this Plan was prepared. Subsection 4-15. Notification of Prior Planned Improvements The City or HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of Richfield Rediscovered 1999 enlargement with a listing of all properties within Richfield I-IItA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-7 Richfield Rediscovered 1999 or area. of enlargement for which building permits have been issued during the • eighteen (18) months immediately preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original value of Richfield Rediscovered 1999 by the value of improvements for which a building permit was issued. Pursuant to M.S., Section 469.177, Subd 4, the City is in the process of reviewing the area to be included in Richfield Rediscovered 1999 to determine if any building permits have been issued during the 18 months immediately preceding approval of the Plan by the City and HRA. Subsection 4-16. Administration of Tax Increment Financing Richfield Rediscovered 1999 Administration of Richfield Rediscovered 1999 will be handled by the Executive Director of the HRA of the City of Richfield. ' Subsection 4-17. Municipal Approval and Public Purpose 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 28 parcels, withplansto 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 Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-8 • 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. 4. Finding that the Tax IncrementFinancing 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 renovation of substandard properties, increased tax base of the State and add a high quality development to the City. Additional findings are set forth in the Authorizing Resolution of the City. Subsection 4-18. Fiscal Disparities Election No commercial/industrial property is expected to be constructed in Richfield Rediscovered 1999. Subsection 4-19. State Tax Increment Financing Aid PursuanttoM.S.,Section273.1399,fortaxincrementfinancingdistrictsforwhichcertificationwasrequested after April 30,1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (RAGA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of the tax increment financing district. Pursuant to M.S., Section 273.1399, Subd. 6, the City or HRA may choose an option to the LGA-RAGA penalty. Richfield Rediscovered 1999 is exempt from the LGA-RAGA reduction if the City or HRA elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year, the City or HRA must make a qualifying local contribution to the project of a certain percentage. The local contribution for a redevelopment district is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the City or HRA must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the City or HRA, such as the general fund, a property tax levy, or a federal or state grant-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes. The City elects to make the annual local contribution to the project to exempt itself from the LGA- • HACA penalty. The City or HRA will pay for costs of the project described in this Plan, in an amount equal Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-9 to 5 percent of annual-tax increment for Richfield Rediscovered 1999, subject to the limitations described • above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or HRA or other unit of government with unrestricted funds. Subsection 4-20. County Road Costs Pursuant to M.S., Section 469.175, Subd. la, the county board may require the City or HRA to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the City and HRA and consultants, the proposed development outlined in this Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City or I-IRA within thirty days of receipt of this Plan. Subsection 4-21. Summary The City of Richfield is establishing Richfield Rediscovered 1999 to preserve and enhance., the tax. base, redevelop substandard areas, and provide employment opportunities in the City.. The--Tax Increment Financing Plan for Richfield Rediscovered 1999 was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota55402-4100, telephone (651) 697-8500. Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-10 APPENDIX A BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT • APPENDIX A-1 W W S ~ ~ ~ ~ ~ ~ ~ ~~ aaez HslaNVls i ~~ ~ ~ Hl6l Mo„~NO, anvavmo H18L HLL L H19L No~Nlwooie H1SL H14L HLEL H1ZL F{LLL H1AL lOlll3 OJb"JIH~ Sn9~1Y110~ M~`dd QJt/DMO '3/~V QJb''llaOd H15 H14 NO1NIl~ aaE dNZ SN3/~3 LS 1SL '3Atl13110'JIN ,~SIVIB ~uaonnirrrdM ~anesrlld ~vsv~d ONb'LI~J 131LRJVH 4-131da`d~J '3I~V 31N4N,ll Holaa-ro ~~aa xd~o~ .wodna Nosa~ 1NWV3ad Oab'aIJ 1A'IOSNnH ~Nlnal s3nror xow, Nb~JOI Nv~aow No~nn~N aanno ~~~~~~ ~ ~ ~ ~ ~ ~ 00o a' 0~~ ~~~~~0~~ 0~~~~Ob ~~~0~ L~~~~~~~~ Q~^0~ ~~~~0~~~~a~ 00~ I ~~~DO~ ~~~~~0 ~~~~~~~0~~~ ~ ~o~ ~~0 ~o~o~~~o ago ~u~~00~000 ~ ~ n 00~~ 000~~ 00~~~0~0000 ~ ~_ o 0~~~ 0~0~~0 0 0 ~ 0 ~ 0~~~ 0 ~ ~ 0 ~~ 0 ~0 0 0 0 0 ~~~~ 000 3 r~ 00~ ~O~ ~ ~ Q 3 O ~0~ O~0 ~ ~ ~~®000 ~ ~~~0~~ ~o o~~~ooo o ooooo~ °~ i ° o ^o ~o ~' 00000 0 q ~~00~~ °o ~ ~ ~ a~oo~ aoooo aooo° ~ ~~~~ 0 0 000 ~~~~ ~ ~0~~ DDDOOD~oo~ ~ ®0~~000~ ~~0 ~0~0 0000 ~lo~oo ~ ~OO~C~~000 O - ~[~~C~0~0 D ~~ 3 ~~~~ ~~~ ~a ~~~ ~~~ sewa-u ~ ~~ (~ ~ ~ ~ ^ Nolan ~ OD -~~~~ Nan9StrM ~ ~~ ~~~~ one s3XZ13X : ti n I `-~ ~-~~i I i i ~Z ~ ~` ~3nv avaao HlBL ~ HILL ~ H19L O No~wuoo~e '~ HLSI H14L - Hl£L . - H1Zl HILL ~ lom3 ca m ~ O`Jb"JIH~ ~ ~ N Sn8Wnl0~ NLMd dNb''Dlb'O '31~b'QNV1L210d ~ ~ ~ ~~ C fus .~ ~ H14 ~~~ ~ ~ ~_ ~ ~ ~ ~ C ~C ~C 1.SL ~ ~ ~ 3/~V13110'JIN ¢ ¢. TH4SMl8 Cv~7 ~U ~ FuacMn-rrdM > > Aaneszlld ~ ~ ~ N 1Ndsv3ld ~ ~ i- aNYa`J ~ ~ ~ =y-- ~~ L ~~ '3NH 37b'ON,II U V ~ -e H~IaO,t7 ~ a .wd~ae ... xv~oo • .. ~lodna • Nosa~ • 1NOVU3ad • r^. 14109Nf1H ~JNV~aI ~'' s~ror xoNx Nb~JOI to Nv~aow No~M3N L aanno ~ Q- anvNN3d j~ N33n0 8 ~ssna ~ gO N`d01a3HS ~ (~ ~`~ sdwoHi ~.~ Nolan ~ ~rrd~ln ~+• •- NanBSVM 3/~HS3Xa3X ~~ p ~ ~~ • O T ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~i ~ ~ ~ ffi ~ ~ ~ APPENDIX B LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE RICHFIELD: REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT Address PID Number 6220 Clinton Avenue 27-028-24-11-0001 6608 Stevens Avenue 27-028-24-42-0073 6625 3`d Avenue 27-028-24-41-0084 6637 5~' Avenue 27-028-24-41-0015 6800 Pillsbury Avenue 27-028-24-34-0016 6744 Blaisdell Avenue 27-028-24-31-0007 6833 Park Avenue 26-028-24-33-0086 6833 Grand Avenue 27-028-24-33-0070 7036 ls` Avenue 34-028-24-12-0015 7241 2"d Avenue 34-028-24-13-0150 7316 Clinton Avenue 34-028-24-14-0086 7301 Garfield Avenue 34-028-24-23-0129 7544 2"a Avenue 34-028-24-42-0104 7333 Emerson Avenue 33-028-24-13-0090 6928 14~' Avenue 26-028-24-43-0069 6315 Newton Avenue 28-028-24-22-0097 6310 Irving Avenue 28-028-24-21-0075 6306 Irving Avenue 28-028-24-21-0126 6320 Girard Avenue 28-028-24-12-0033 6645 Knox Avenue 28-028-24-31-0032 6800 Logan Avenue 28-028-24-33-0001 6912 Penn Avenue 29-028-24-44-0161 6933 Queen Avenue 29-028-24-44-0170 6833 Penn Avenue 28-028-24-33-0045 6929 Queen Avenue 29-028-24-44-0171 6901 12~'Avenue 26-028-24-43-0082 6945 Clinton Avenue 27-028-24-44-0108 7615 Pillsbury Avenue 34-028-24-34-0045 • APPENDIX B-1 APPENDIX C ESTIMATED CASH FLOW FOR THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT APPENDIX C-1 09/08/99 Page 2 CITY OF RICHFIELD, MINNESOTA TAX INCREMENT FINANCING DISTRICT -RICHFIELD REDISCOVERED TAX INCREMENT CASH FLOW C • Base Project Captured Semi-Annual Admin. Semi-Annual Local Match Years PERIOD BEG INNING Tax Tax Tax .Gross Tax at Net Tax at Of PERIOD EN DING Yrs. Mth. Yr. Ca acit Ca aci Ca aci Increment 10.25% Increment 5.00% Increment Yrs. Mth. Yr. 0.0 08-01 1999 4,550 4,550 0 0 0 0 0 0.0 0.5 02-01 2000 0.5 02-01 2000 4,550 4,550 0 0 0 0 0 0.0 1.0 08-01 2000 1.0 08-01 2000 4,550 4,550 0 0 0 0 0 0.0 1.5 02-01 2001 1.5 02-01 2001 4,550 12,135 7,585 5,723 (587) 5,136 286 0.5 2.0 08-01 200.1 2.0 OS-01 2001 4,550 12,135 7,585 5,723 (587) 5,136 286 1.0 2.5 02-01 2002 2.5 02-01 2002 9,100 24,269 15,169 11,445 (1,173) 10,272 572 1.5 3.0 08-01 2002 3.0 08-01 2002 9,100 24,269 15,169 11,445 (1,173) 10,272 572 2.0 3.5 02-01 2003 3.5 02-01 2003 13,650 36,404 22,754 17,168 (1,760) 15,408 858 2.5 4.0 08-01 `2003 4.0 08-01 2003 13,650 36,404 22,754 17,168 (1,760) ...15,408 858 3.0 .4.5 02-01 2004 4.5 02-01 2004 18,200. 48,538 30,338 22,891 (2,346) 20,544 1,145 3.5 5.0 08-01 2004 5.0 08-01 2004 18,200 48,538 30,338 22,891. (2,346) 20,544 1,145 4.0 5.5 02-01 2005 5.5 02-01 2005 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 4.5 6.0 08-01 2005 6.0 08-01 2005 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 5.0 fi.5 02-01 2006 6.5 02-01 2006 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 5.5 7.0 08-01 2006 7.0 08-01 2006 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 6.0 7.5 .02-01 2007 7.5 02-01 2007 18,200 48,538 30,338 22,891 {2,346) 20,544 1,145 6.5 8.0 OS-01 2007 8.0 08-01 2007 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 7.0 8.5 02-01 2008 8.5 02-01 2008 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 7.5 9.0 08-01 2008 9.0 08-01 2008 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 8.0 9.5 02-01 2009 9.5 02-01 2009 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 8.5 10.0 :08-01 2009 10.0 08-01 2009 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 9.0 10.5 02-01 2010 10.5 02-01 2010 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 9.5 11.0 08-01 2010 11.0 08-01 2010 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 10.0 11.5. 02-01 .2011 11.5 02-01 2011 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 10.5 12.0 08-01 2011 12.0 OS-01 -2011 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 11.0 12.5 02-01 2012. 12.5 02-01 2012 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 11.5 13.0 08-01 2012 13.0 OS-01 2012 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 12.0 13.5 02-Ot 2013. 13.5 02-01 2013 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 12.5 14.0. 08-01 2013 14.0 08-01 2013 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 13.0 14.5 02-01 2014 14.5 02-01 2014 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 13.5 15.0 08-01 2014 15.0 08-01 2014 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 14.0 15.5 02-01 2015 15.5 -02-01 2015 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 14.5 16.0 08-01 2015 16.0 08-Ot 2015 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 15.0 16.5 02-01 2016 16.5 02-01 2016 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 15.5. 17.0 08-01 2016 17.0 OS-01 2016 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 16.0 17.5 02-01 2017 17.5 02-01 2017 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 16.5 18.0 08-01 2017 18.0 08-01 2017 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 17.0 18.5 02-01 2018 18.5 02-01 2018 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 17.5 19.0 08-01 2018 19.0 08-01 2018 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 18.0 19.5 02-01 2019 19.5 02-01 2019 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 18.5 20.0 08-01 2019 20.0 08-01 2019. 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 19.0 20.5 02-01 2020-.. 20.5 02-01 2020 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 19.5 21.0 08-01 2020 21.0 08-01 2020 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 20.0 21.5 02-01 2021 21.5 02-01 2021 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 20.5 22.0 OS-01 2021 22.0. 08-01 2021 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 21.0 22.5 02-01 2022 22.5 02-01 2022 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 21.5 23.0. 08-01 2022 23.0 08-01 2022 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 22.0 23.5 02-01 2023 23.5 02-01 2023 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 22.5 24.0 08-01 2023 24.0. 08-01 2023 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 23.0 24.5 02-01 2024 24.5 02-01 . 2024 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 23.5 25.0 08-01 2024 25.0 08-01 . 2024 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 24.0 25.5 02-01 2025 25.5 02-01 2025 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 24.5 26.0 OS-01 '2025 26.0 08-01 2025 18,200 48,538 30,338 22,891 2,346 20,544 1,145 25.0 26.5 02-01 2026 Totals 1,075,860 110,276 965,584 53,793 Present Values 481,134 49 316 431 818 Ehlers and Associates, Inc. Plant.wk4 09/08/99 Page 1 CITY OF RICHFIELD, MINNESOTA TAX INCREMENT FINANCING DISTRICT -RICHFIELD REDISCOVERED T.I.F. CASH FLOW ASSUMPTIONS Interest Rate: 6.000% Tax Extension Rate: 1.50904 Estimate Inflation Rate: 0.0000% BASE VALUE INFORMATION Tax _ MV Per Unit # Units Market Value Capacity Various Parcels 65,000 28 1,820,000 18,200 Total 18,200 PROJECT VALUE INFORMATION Type of Tax Increment District: Housing Number of Units: 28 Class Rates: Single Family <$76k 1.0000% Single Family>$76k 1.6500% Estimated Market Value On all Projects: 3,780,000 (7 a year for four years) Estimated Total Market Value per Unit 135,000 Estimated Tax Capacity Per Unit: 1,734 Estimated Tax Capacity Total: 48,538 (7 a year for fouryears) Estimated Taxes: 73,246 Estimated Taxes Per Unit: 2,616 Estimated Tax Increment: 11,445 Estimated Tax Increment Per Unit: 409 BUT /FOR ANALYSIS Current Market Value -Est. 1,820,000 New Market Value -Est. 3,780,000 Difference 1,960,000 Present Value of Tax Increment 481,134 Difference 1,478,866 Value Likel to Occur Without TIF is Less Than: 1,478,866 • Ehlers and Associates, Inc. Plant.wk4 APPENDIX D REDEVELOPMENT QUALIFICATIONS- FOR THE RICHFIELD. REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT The HRA staff has .provided the opportunity for property owners to allow access to the property in order to undertake an interior inspection. Each property has been reviewed to determine property substandardness in accordance with M.S., Section 469.174, Subd. 10. All findings are on file for review at the City of Richfield, Community Development Department. • APPENDIX D-1 g HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. '7~' Agenda November 15, 1999 Issue Statement: Approval of a resolution forgiving the remaining balance on a 1990 interfund loan from the LHN tax increment fund to the Richfield Rediscovered New Construction Program. Background: In -1990, when the Richfield Rediscovered New Construction Program (formerly known as the Expanded New Home Program) was established, the Housing and Redevelopment Authority (HRA) and City Council determined that three sources of revenue would be provided as an interfund loan to initiate the program. The three sources were the Sewer Utility Fund, Water Utility Fund, and Lyndale-Hub Nicollet (LHN) Tax Increment Fund. The total amount borrowed from the funds was $762,550. Each fund provided one-third of the necessary revenue, or approximately $254,183.33. As of December 31, 1998, the total amount paid back to the funds has been $388,255.79. The recent approval by the HRA for the Richfield Rediscovered 1999 New Construction Program proposed the City. issuing a variable rate demand general obligation bond to further fund the program. In their financial analysis, the HRA's development consultant, Ehlers & Associates, Inc., proposed that future tax increments generated from the 1999 cycle of new homes be pledged to pay debt service on the bonds. Ehlers also proposed that old Richfield Rediscovered parcels generating increment would contribute toward debt service on the bonds as well as debt service on the interfund loans for the Sewer and Water Utility Funds. In order to allow more funds to flow to new Richfield Rediscovered projects, the LHN Tax Increment Fund would no longer be repaid. Since the LHN district was able to pool its revenue to Richfield Rediscovered for eligible project costs, it was proposed under the bond funding strategy that the remaining balance, or $124,763.39, on this interfund loan be forgiven. The City's auditor's, HLB Tautges Redpath, Ltd., recommends that before the LHN interfund loan is forgiven, the HRA and City Council adopt a resolution which ratifies this decision. Therefore, attached is a resolution for your consideration. Recommended Motion: It is recommended the HRA adopt a resolution that forgives the remaining balance on a 1990 interfund loan from the LHN Tax Increment Fund to the Richfield Rediscovered New Construction Program. Basis of Recommendation: 1. The LHN Tax Increment Fund has the ability to pool its revenue to other projects for eligible project costs. C~ 2. The HRA and City Council were already presented with the financing strategy for Richfield Rediscovered 1999 which included this element in order to better cashflow the program. 3. This is a very appropriate use of the LHN funds. Alternative Recommendation: 1. Do not allow the forgiveness of the remaining balance on the interfund loan. 2. Defer this item to another HRA meeting for consideration. 3. Propose an alternative solution to cashflow the Richfield Rediscovered 1999 New Construction Program. Discussion/Decision Mode:. Forgiving the remaining balance of the interfund loan will allow the Richfield Rediscovered 1999 New Construction Program to maintain its cashflow and meet its obligations related to funding the new cycle. Respectfully submitted, .z~'~8~ aman a Orduno ive Director SO:ds Attachments ~J HRA RESOLUTION NO. RESOLUTION FORGIVING THE REMAINING BALANCE ON A 1990 INTERFUND LOAN FROM THE LHN TAX INCREMENT FUND TO THE RICHFIELD REDISCOVERED 1999 NEW CONSTRUCTION PROGRAM WHEREAS, in 1990, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") established the. Richfield Rediscovered New Construction Program, formerly known as the Expanded New Home Program (the "Program"); and WHEREAS, the HRA together with the City Council (the "Council") provided $762,550 in interfund loans from the Sewer Utility Fund, Water Utility Fund, and LHN Tax Increment Fund (the "Funds") to initiate the Program; and WHEREAS, as of December 31, 1998, $388,255.79 has been paid back to the Funds by the Program; and WHEREAS, a new funding strategy for the continuation of the Program has recently been approved by the HRA and Council; and WHEREAS, the funding strategy contemplates to forgive the remaining balance. on a portion of the Funds, or $124,763.39 to the LHN Tax Increment Fund; and WHEREAS, forgiving the remaining balance on a portion of the Funds will allow the Program to meets it's debt service obligations, as proposed and approved. NOW, THEREFORE, BE IT RESOLVED by the HRA that the HRA's staff, the HRA's development consultant, Ehlers &Associates, Inc., and the City's auditor's, HLB Tauges Redpath, Inc. shall be authorized to take such action as is necessary to cause the forgiveness of the remaining balance of the 1990 interfund loan from the LHN Tax Increment Fund in the amount of $124,763.39. Approved by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, this 15th day of November, 1999. Thomas E. Harms, Chair Attest: Michael Sandahl, Secretary • 9 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 78 Agenda November 15, 1999 Issue Statement: Public hearing and adoption of the 2000 HRA proposed tax levy and budget. Background: At the August 16, 1999 meeting, the HRA adopted a preliminary levy according to the Truth-in-Taxation law. That levy was then forwarded to the City Council and adopted with the City's preliminary levy. The Truth-in-Taxation law does not require any further action by the HRA, nor does it require a public hearing on the final tax levy and/or budget. The HRA levy will be included as part of the City's final levy document which will be considered at the City's Truth-in-Taxation hearing on December 6, 1999. However, a public hearing on the proposed HRA 2000 budget and tax levy has been scheduled for November 15, 1999 to provide for public input. At the conclusion of the hearing, the HRA should adopt a final budget and tax levy for 2000 to be forwarded to the City Council. The HRA budget resolutions are included with the budget document and represent official action on those items by the HRA. Recommended Motion: Adopt the resolution adopting a 2000 HRA budget and property tax levy for 2000. Basis of Recommendation: 1. The HRA approved the Proposed 2000 Budget and Proposed 2000 HRA General Fund tax levy at its August 16, 1999 meeting. 2. The HRA should now take official action to finalize the HRA budget and tax levy. 3. Notice of the public hearing was published in the Richfield Sun Current. Alternative Recommendation: 1. The HRA could select another meeting date before December 6, 1999 to consider these items. However, there would be little time to publish a timely notice. Discussion/Decision Mode: It is recommended that the HRA take action on the HRA budget and property tax levy on November 15, 1999. Res II submitted, Sa ha Orduno Executive Director SO:ds HRA RESOLUTION NO. RESOLUTION ADOPTING 2000 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2000 TAX LEVY NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Housing and Redevelopment Authority General Fund of Richfield for the year 2000 in the amount of $1,242,820 is hereby ratified. Section 2. The estimated gross revenue of the Housing and Redevelopment Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2000 and as the same are more fully detailed in the Executive Director's official copy of the budget for the year 2000, in the amount of $1,134,390 are hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 1999, payable in 2000, for the following purposes: Housing and Redevelopment Authority $195,250 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of November, 1999. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary ~~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 7G Agenda November 15,1999 Issue Statement: Authorization to issue Completion Certificates to Steven Marlin Grant Homes, Inc. for 7432 Aldrich and 7315 Thomas Avenues, and John B. Mahoney Construction, Inc. for 6512 Bloomington Avenue. .Background: The HRA authorized development of the above referenced properties for single family new construction. The development agreements provide for the issuance of a Certificate of Completion when construction is completed. (A sample certificate is attached as Exhibit A.) The homes have been completed, and the builders have requested the release of Letters of Credit and the Certificates of Completion upon completion and closing. Staff is anticipating these requests and wants to respond in a timely manner upon verification of completion. Recommended Motion: Authorize the Chair and Executive Director to execute the Certificates of Completion in accordance with the attached resolution. Basis of Recommendation: 1. Construction has been completed and the Inspections Division has issued the Certificates of Occupancy. 2. The builders have performed in accordance with construction agreements and will seek the issuance of Certificates of Completion. Alternative Recommendation: Do not issue Certificates of Completion at this time. Discussion/Decision Mode: This matter will be presented at the November 15, 1999 HRA meeting. submitted, Orduno Director SO:ds Attachment i HRA RESOLUTION NO. RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATES OF COMPLETION FOR NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 7432 ALDRICH, 7315 THOMAS AND 6512 BLOOMINGTON AVENUES WHEREAS, the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) entered into contracts with Steven Marlin Grant Homes, Inc. and John B. Mahoney Construction, Inc.; and WHEREAS, the new homes are located at 7432 Aldrich, 7315 Thomas, and 6512 Bloomington Avenues; and WHEREAS, performance securities in the amount of $35,000 and $38,500 can be released to Steven Marlin Grant Homes, Inc. and $27,000 can be released to John B. Mahoney Construction, Inc. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, 1. The Certificates of Completion for 7432 Aldrich, 7315 Thomas, and 6512 Bloomington Avenues can be issued. 2. The performance securities can be released when the Completion Certificates are issued. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of November, 1999. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • Exhibit A CERTIFICATE OF COMPLETION The undersigned hereby certifies that (Builder) has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and {Builder) dated (Dated .filed (Date) as Document No. (Number) with respect to construction of the Improvements at (Address) ,legally described as (Legal Description) , in accordance with the approved construction. plans and is released and forever discharged from its obligations to construct under such above-referenced Article. Dated: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Executive Director • STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 19 , by and the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, MN 55423 [H:CdAdmin:Housing:Fomt:Cert-Coml