10-11-99 agenda• CITY OF RICHFIELD, MINNESOTA
MONDAY, OCTOBER 11, 1999
REGULAR CITY COUNCIL MEETING
7:00 P.M.
COUNCIL CHAMBERS
RICHFIELD CITY HALL
....AGENDA ,:
INTRODUCTORY PROCEEDINGS
CALL TO ORDER _.
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF MINUTES OF (1) REGULAR CITY COUNCIL MEETING OF
SEPTEMBER 27, -1999; AND (2) REGULAR CITY COUNCIL STUDY SESSION OF
OCTOBER 4, 1999
PRESENTATIONS
1. ACKNOWLEDGEMENT OF 1.999 GEORGE WARREN FULLER AWARD
PRESENTATION BY AMERICAN WATER WORKS ASSOCIATION TO JOHN
THOM, UTILITIES COORDINATOR FOR RICHFIELD PUBLIC WORKS
DEPARTMENT
COUNCIL LETTER N0.233
INDIVIDUALS WHO WISH TO ADDRESS THE COUNCIL ARE REQUESTED TO
PRINT THEIR NAME AND ADDRESS ON THE SPEAKER'S REGISTER FOR THE
RECORD.
2. OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT
ON THE AGENDA
AGENDA APPROVAL
3. COUNCIL APPROVAL OF AGENDA
CONSENT CALENDAR
• 4. CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE
ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT
• CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND
RECOMMENDED ACTIONS HAVE ALSO .BEEN APPROVED. NO FURTHER
COUNCIL ACTION IS NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY
REQUEST-THAT AN-ITEM BE REMOVED FROM THE CONSENT CALENDAR
AND PLACED ON THE REGULAR AGENDA FOR COUNCIL DISCUSSION AND
ACTION. ALL ITEMS LISTED ON THE CONSENT CALENDAR ARE
RECOMMENDED FOR APPROVAL.
A. CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING
---~ APPLICATION FOR-LIVABLE COMMUNITY-~DEMONSTRATION:~PROGRAM
PLANNING GRANT TO METROPOLITAN COUNCIL C.L.` 234
B. CONSIDERATION OF APPROVAL OF EXTENDING CONTRACT NO. A01384
WITH HENNEPIN COUNTY TO ALLOW CONTINUED ACCESS TO
PROPERTY INFORMATION SYSTEM °C.L. 235'
PUBLIC HEARINGS
5. CANCEL PUBLIC HEARING REGARDING REQUEST FOR CONDITIONAL USE
PERMIT FOR GAS STATION/CONVENIENCE STORE AT 1208 EAST 66TH
STREET
COUNCIL LETTER N0.236
6. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION MODIFYING
GRAMERCY AND URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT
PLANS; MODIFYING RICHFIELD REDEVELOPMENT PROJECT AREA PLAN;
ESTABLISHING RICHFIELD REDEVELOPMENT 1999 TAX INCREMENT
FINANCING DISTRICT; AND CREATING RICHFIELD REDEVELOPMENT 1999
TAX INCREMENT FINANCING DISTRICT PLAN
COUNCIL LETTER NO. 237
7. PUBLIC HEARING AND SECOND READING OF TRANSITORY ORDINANCE
APPROVING CAPITAL IMPROVEMENT PROJECT TO CONSTRUCT
RECREATION AND COMMUNITY CENTER, PURSUANT TO RICHFIELD CITY
CHARTER SECTION 8.04
COUNCIL LETTER N0.238
8. DISCIPLINARY HEARING AND CIVIL ENFORCEMENT FOR ALCOHOL
ESTABLISHMENTS IN RICHFIELD THAT RECENTLY UNDERWENT ALCOHOL
COMPLIANCE CHECKS, CONDUCTED BY RICHFIELD PUBLIC SAFETY STAFF,
AND FAILED CHECKS BY SELLING ALCOHOL TO UNDERAGE YOUTH
COUNCIL LETTER N0.239
PROPOSED ORDINANCE
9. CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF 6812
QUEEN AVENUE AND FIRST READING OF ORDINANCE AUTHORIZING SALE
OF PROPERTY TO HRA FOR NEW CONSTRUCTION
COUNCIL LETTER N0.240
RESOLUTION
10. CONSIDERATION OF COUNCIL CONFIRMATION OF MAYOR'S APPOINTMENT
OF HOUSING AND REDEVELOPMENT AUTHORITY COMMISSIONER
COUNCIL LETTER N0.241
AIRPORT BUSINESS
11. AIRPORT STATUS REPORT
CORRESPONDENCE
12. LEGISLATIVE REPORT
COUNCIL CHOICE
13. COUNCIL DISCUSSION ITEMS
14. CLAIMS AND PAYROLLS
15. 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.
/o
. CITY OF RICHFIELD, MINNESOTA
Council Letter No. 241
Agenda October 11, 1999
Issue Statement:
Council confirmation of Mayor's appointment of a Housing and Redevelopment
Authority Commissioner.
Background:
The term of HRA Commissioner Russ Susag will expire in October 1999.
Commissioner Susag was appointed to the HRA in 1993.
Under state law, the Mayor appoints HRA Commissioners subject to confirmation of the
City Council. The Mayor has indicated he will make an appointment to the HRA for a
five year term at the October 11, 1999 Council meeting.
Recommended Motion:
Confirm the Mayor's appointment of a Commissioner to the Housing and
Redevelopment Authority for a five year term which will expire in October 2004.
Basis of Recommendation:
An appointment needs to be made for a term which will expire in October 1999.
Alternative Recommendation:
Continue the appointment confirmation to a future Council meeting.
Discussion/Decision Mode:
This item has been scheduled for the October 11, 1999 Council meeting so the
appointment can be made to ensure a full complement of Commissioners on the
Housing and Redevelopment Authority. \
R pe ully submitted
S n L. evich
Acting City Manag r
SLD:cak
9
CITY OF RICHFIELD, MINNESOTA
• Council Letter No. 240
Agenda October 11, 1999
Issue Statement:
Consideration of a resolution authorizing acquisition of 6812 Queen Avenue and first
reading of an ordinance authorizing sale of the properly to the Housing and
Redevelopment Authority for new construction.
Background:
The Housing and Redevelopment Authority (HRA) has developed -sites under the New
Home program with affordable new housing for families for 20 years. The U.S.
Department of Housing and Urban Development (HUD) defines low income as at or
below 80 percent of the median income ($47,800 for a family of four). All homes
developed under this program have been sold to families meeting that definition. In
order to utilize federal funding for acquisition, HUD rules require that the City purchase
the property and subsequently transfer it to the HRA to re-sell at the appropriate time.
The City would use Community Development Block Grant (CDBG) funds for this
acquisition.
The existing property is a small one and one-half story house with several safety and
maintenance problems. The owner has moved out and the property is now vacant. The
property's 1999 tax value was $89,000. However, due to needed structural repairs,
several code compliance issues and updating, the owner is ready to sell for $70,000.
It is anticipated that the City could acquire the property by early November. Sale of the
property to the HRA could occur by December 17, 1999 if the transitory ordinance is
approved at the November 8 City Council meeting. The HRA would be responsible for
any holding or maintenance costs incurred at the property after acquisition by the City.
Construction would begin this spring after the property is transferred to the HRA.
Recommended Motion:
The City Council should take the following actions:
1. Adopt the attached resolution which authorizes the acting City Manager and Mayor
to:
A. Enter into a purchase agreement and take other actions necessary to acquire the
property at 6812 Queen Avenue from the owner for $70,000.
B. Enter into a sale agreement with the HRA and take other actions necessary to
transfer the property to the HRA for $1.00.
C. Schedule a public hearing and a second reading of the transitory ordinance for
November 8 to accomplish the sale to the HRA.
2. Give first reading to the attached transitory ordinance.
!'
Basis of Recommendation:
1. Funds have been budgeted for acquisition, clearance, and maintenance from
federal CDBG funds. The CDBG funds must be utilized for these purposes, and the
site must be redeveloped to provide a new home for an income-qualified, first-time
buying family.
2. The property is substandard and qualifies for acquisition. The property owner is
interested in selling the property through the voluntary acquisition program.
3. HUD rules require a process by which the City acquires the property and transfers
the property to the HRA. City-owned property requires the adoption of a transitory
ordinance to effectuate a sale.
4. The acquisition and disposition of the property is in conformance with the
Comprehensive Plan.
5. Staff is finalizing the preliminary work which would commit this site to a New Home
Program construction project in 2000.
6. The owner is ready to sell the property for $70,000, substantially below the
estimated market value of $89,000. The HRA has identified this property for the
New Home Program.
Alternative Recommendation:
The City can choose not to acquire the property. However, the property is currently
vacant. No better acquisition site has been identified for the HRA first-time buyer
project.
Discussion/Decision Mode:
The sale from the City to the HRA will require a pubic hearing and second reading of a
transitory ordinance scheduled for November 8, 1999.
Res ctf y submitt ,
.~
V
ve : D i
Acting City Manager
SLD:ds
~~
RESOLUTION NO.
RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY
LOCATED AT 6812 QUEEN AVENUE
WHEREAS, the City of Richfield, Minnesota (the "City)" proposes to sell real
property to the Housing and Redevelopment Authority (HRA) for $1.00 in furtherance of
HRA housing programs; and
WHEREAS, the City has considered the purchase of 6812 Queen Avenue with
CDBG funds on behalf of the Richfield HRA for $70,000. The property is further
described as:
Address: 6812 Queen Avenue South
Legal Description: Lot 4, Block 2, Tingdale Bros.' Lincoln Hills Third Addition
WHEREAS, pursuant to the City Charter, Section 13.04, the City is authorized to
sell its property following a public hearing for which notice was published not less than
ten days before such hearing.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota as follows:
1. The Acting City Manager and Mayor are authorized to take those actions
necessary to purchase 6812 Queen Avenue for $70,000.
2. The City shall hold a public hearing and second reading of the ordinance
regarding the sale of the land to the HRA on Monday, November 8, 1999.
3. The City Clerk is directed to publish notice of such hearing in the official
newspaper of the City and post notice of said hearing.
Octob
Martin J. Kirsch,
Adopted by the City Council of the City of Richfield, Minnesota this 11th day of
er, 1999.
~'- 3
TRANSITORY ORDINANCE NO.
AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE SALE, TRANSFER OR
OTHER DISPOSITION AND CONVEYANCE OF CERTAIN CITY OWNED REAL
PROPERTY LOCATED IN THE CITY OF RICHFIELD, COUNTY OF HENNEPIN,
STATE OF MINNESOTA (6812 QUEEN AVENUE)
The City of Richfield Does Ordain:
Section 1.
The following described real property located in the City of Richfield, County of
Hennepin, State of Minnesota, is hereby authorized to be sold, transferred or otherwise
disposed of and conveyed by the City as herein provided:
Lot 4, Block 2, Tingdale Bros.' Lincoln Hills Third Addition, Hennepin County,
Minnesota, and having the street address of 6812 Queen Avenue South,
Richfield, Minnesota.
Section 2.
The Mayor and Acting City Manager are hereby authorized to take all action as is
required to sell, transfer, or otherwise dispose of and convey the real property described
in the foregoing Section 1, including, by way of illustration and not limitation, the
execution of all documents, purchase agreements, deeds of conveyance, and other
instruments connected with such sale, transfer or disposition and conveyance.
Passed by the City Council of the City of Richfield, Minnesota this day of
.1999.
ATTEST:
Martin J. Kirsch, Mayor
Thomas P. Ferber, City Clerk
8
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 239
Agenda October 11, 1999
Issue Statement:
Disciplinary hearing and civil enforcement for alcohol establishments in Richfield that
recently underwent alcohol compliance checks, conducted by Richfield Public Safety
staff, and failed the checks by selling alcohol to underage youth.
Background:
On July 12, 1999, Richfield Public Safety staff conducted alcohol compliance checks at
13 establishments, assisted by three underage youths between 18-20 years of age.
These compliance checks were afollow-up to compliance checks that were conducted
by police in March and April 1999.
On July 12, 1999, the police division made arrangements for the minors to enter the
establishment with undercover police officers. In two instances, the youths were
successful in being served alcohol.
The businesses that made sales to underage youth on July 12, 1999 are as follows:
• Kenny's Market - 6708 Penn Avenue
• Phillips 66 -1120 East 78th Street
This is a second offense violation for Kenn 's Market and Philli s 66. The were fined
Y p Y
$500 and received a two day suspension of their license on April 26, 1999 as a result of
selling alcohol to a minor.
On July 15, 1999, Richfield Public Safety staff conducted a second round of alcohol
compliance checks at 12 establishments, assisted by three underage youths between
the ages of 18-20 years of age. Again, on that date, the police division made
arrangements for the minors to enter the establishment with an undercover police
officer. In three instances, the youth were successful in being served alcohol.
The businesses that made sates to underage youth on July 15, 1999 are as follows:
• SuperAmerica - 2913 West 66th Street
• Fred Babcock VFW - 6401 Lyndale Avenue
• Chi Chi's - 7717 Nicollet Avenue
This is a second offense violation for SuperAmerica. They were fined $500 and
received a two day suspension of their license on April 26, 1999 as a result of selling
alcohol to a minor. This is also a second offense violation for Chi Chi's. They were
fined $500 and received a two day suspension of their license on May 24, 1999 as a
result of selling alcohol to a minor. This is a first violation for the VFW.
~I
On July 16, 1999, Richfield Public Safety staff conducted a third and final round of
alcohol compliance checks at 13 establishments. They were assisted by one underage
youth, 18 years of age. Again, the police division made arrangements for the minor to
enter the establishments with an undercover police officer. In eight instances, the youth
was successful in being served alcohol.
The businesses that made sales to the underage youth on July 16, 1999 are as follows:
• Khan's Mongolian Barbeque - 500 East 78th Street
• American Legion - 6501 Portland Avenue
• Don Pablos - 980 West 78th Street
• Godfather's Pizza - 2 West 66th Street
• Rainbow Foods -140 West 66th Street
• Ketsana's Restaurant - 7545 Lyndale Avenue
• Champps - 790 West 66th Street
• Frenchman's -1400 East 66th Street
This is a second offense violation for Ketsana's Restaurant. They were fined $500 and
received a two day suspension of their license on April 26, 1999 as a result of selling
alcohol to a minor. This is a first violation for the other seven establishments.
At no time did any of the minors consume any of the alcohol. In some instances, the
alcohol establishment employee did not request any identification from the youth and, in
other cases, they were asked to produce identification. The youth presented their
personal valid ID's and at no time attempted to convince anyone that they were of legal
age. Many times the clerk looked at the LD. but seemed to struggle with doing She math
to determine their age, despite the fact that all underage ID's now state that the person
pictured is under 21 years of age. Establishments were visited at a variety of times,
busy or not busy, in an effort to determine if busy times produced more successful buys.
It doesn't appear to have made a difference at either time.
After each attempt, successful or unsuccessful, the officers identified themselves to the
clerk and issued them a citation if they failed. If the underage youths were unsuccessful
in securing alcohol, the officers congratulated the clerk for doing a good job. Those
employees that sold alcohol will be charged criminally in court. The action being taken
today is for civil enforcement and penalties against the businesses that hold a license to
sell alcohol within the City.
At an April 5, 1999 Study Session with the City Council, staff was directed to update
Resolution 8714, which specifies certain improper conduct of alcohol license holders
and delineates the progressive discipline that can be expected when violations occur.
In the past, this resolution has not included progressive discipline regarding the sale of
alcohol to minors. This is the resolution that is referenced each year at the time that
alcohol licenses are renewed. A copy of the resolution approved on April 26, 1999 has
previously been supplied to each establishment selling alcohol.
Ur~
• The fines being recommended at this time are intended to recover 100% of the costs for
conducting the compliance checks and to penalize the businesses punitively. It is
recommended that fines also be used by Public Safety police personnel to conduct two
additional compliance checks, within anine-month period, on all licensed
establishments. Any establishments found to be guilty of selling again on a second,
third or fourth check would receive progressive discipline in the way of license
suspensions and fines as outlined in a revised version of Resolution 8714. Public
Safety staff is also recommending that consideration be given to designating 15% of the
punitive fines for future alcohol and tobacco education efforts within the community.
Recommended Motion:
Staff recommends that the City Council take the following actions:
• Adopt a resolution suspending each of the first time violating establishments'
licenses to sell alcohol for two consecutive days.
• Levy a fine against each establishment in the amount of $500 for the. first violation.
• Each first time violating establishment will attend a mandatory meeting with the
Public Safety Director to present their individual establishment plans to ensure
eliminating any future actions of this kind.
• Each establishment admitting the first time violation is to attend an alcohol-sales and
awareness program presented by the Crime Prevention staff.
• Adopt a resolution suspending each of the second time violating establishments'
license to sell alcohol for five consecutive days. Staff is also proposing that the
Public Safety Director will select the five consecutive days that the second'#ime
. offenders' licenses will be suspended.
• Levy a fine against each establishment in the amount of $1500 for the second
violation.
• Second-.time violating establishments will be required to meet a second time with the
Public Safety Director.
• Each second time violator will conduct a mandatory alcohol and sales awareness
training session with all of their employees. This training will be provided by either a
private firm approved by Public Safety ofFcials, or by Public Safety staff, with all
costs to be paid by the establishment.
• For each establishment that requests a contested case hearing, adopt a resolution
referring the matter to an independent hearing examiner to be selected by the
Director of Public Safety.
Basis of Recommendation:
1. It is a violation of a Minnesota State Statute and City ordinance to sell alcohol to
underage youth.
2. Civil enforcement penalties taken in 1990 and in April 1999 by the City Council
against several establishments were severe. This was done to send a message to
the establishments and the community that the Council will not tolerate this type of
violation continuing in the community and that Richfield youth and their well-being
are highly valued.
8~3
3. Citizen representatives of the Richfield Advisory Board of Health support severe
actions against establishments in an effort to protect the youth of the community
and to send a message that youth and their well-being are a high priority in this
City.
Alternative Recommendation:
1. The Council may consider taking more or less severe action against the
establishments that sold alcohol to underage youth.
Discussion/Decision Mode:
The disciplinary hearing and staff recommendations for civil enforcement penalties for
alcohol establishments in Richfield that recently failed alcohol compliance checks
conducted by Richfield Public Safety staff are presented for Council action at this time.
submitted,
Acting City Manager
SLD:ds
Attachments
ff ~1
. CITY OF RICHFIELD
RESOLUTION NO.
RESOLUTION FOR CONTESTED CASE HEARING
WHEREAS, ("Licensee") holds an on-sale
liquor license from the City of Richfield; and
WHEREAS, on , 1999, the City of Richfield public safety
department conducted a compliance check of the Licensee's establishment; and
WHEREAS, during the compliance check, an employee of the Licensee sold
alcohol to a minor in violation of state law and city ordinances; and
WHEREAS, the Licensee appeared before the Richfield City Council on October
11, 1999, denied the violation and requested a contest case hearing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield as follows:
1. The Public Safety Director is authorized and directed to retain an independent
hearing examiner to preside over a contested case hearing concerning the
proposed disciplinary action against the Licensee's license.
2. The contested case hearing shall be conducted in accordance with Minnesota
Statutes, Sections 14.57 to 14.69.
3. The hearing examiner shall schedule a hearing date that is mutually convenient
to the Public Safety Department and the Licensee, to be held within 60 days of
the date of this resolution. The hearing examiner shall notify the Public Safety
Director and the Licensee of the scheduled hearing date.
Thomas Ferber, City Clerk
Martin J. Kirsch, Mayor
Passed by the City Council of the City of Richfield this 11th day of October 1999.
~=s
CITY OF RICHFIELD
RESOLUTION NO.
RESOLUTION SUSPENDING THE FOR
AND IMPOSING A CIVIL PENALTY
WHEREAS, ("Licensee") holds an
license from the City of Richfield; and
WHEREAS, on ,the City of Richfield public safety
department conducted a compliance check of the Licensee's establishment; and
WHEREAS, during the compliance check, an employee of the Licensee sold
alcohol to a minor with the civil penalty being imposed on ;and
WHEREAS, the Licensee appeared before the Richfield City Council on October
11, 1999 and admitted the violation; and
WHEREAS, the Licensee has stipulated to the suspension and penalty-imposed.
by this resolution.
S NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield as follows:
1. The Licensee's license is hereby suspended for a
period of two consecutive days, commencing on a date to be determined by the
Public Safety Director, but commencing no later than November 11, 1999.
2. A civil penalty of $500 is hereby imposed. On or before November 11, 1999, the
Licensee shall deliver a check or money order payable to the City of Richfield in the
amount of $500.
3. Meet with the Director of Public Safety by November 11, 1999 to present an action
plan to ensure future compliance, and attend an alcohol compliance and sales
awareness presentation conducted by Public Safety staff by November 11, 1999.
Passed by the City Council of the City of Richfield this 11th of October, 1999.
ATTEST:
Martin J. Kirsch, Mayor
Thomas P. Ferber, City Clerk
CITY OF RICHFIELD ~ -~
RESOLUTION NO.
RESOLUTION SUSPENDING THE FOR ;
AND IMPOSING A CIVIL PENALTY
WHEREAS, ("Licensee") holds an
license from the City of Richfield; and
WHEREAS, on ,the City of Richfield public safety
department conducted a compliance check of the Licensee's establishment; and
WHEREAS, during the compliance check, an employee of the Licensee sold alcohol
to a minor with the civil penalty being imposed on ;and
WHEREAS, this is a second violation of the sale of alcohol to a minor with the first
civil penalty being imposed on ;
WHEREAS, the Licensee appeared before the Richfield-City Council on October 11,
1999 and admitted the violation; and
WHEREAS, the Licensee has stipulated to the suspension and penalty imposed by
this resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
as follows:
1. The licensee's license is hereb sus ended fora eriod of five
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consecutive days, commencing on a date to be determined by the Public Safety Director,
but commencing no later than November 11, 1999.
2. Acivil penalty of $1500 is hereby imposed. On or before November 11, 1999, the
Licensee. shall deliver a check or money order payable to the City of Richfield in the:
amount of $1500.
3. Licensee must schedule mandatory alcohol compliance and sales awareness training for
all employees who are responsible for the service of alcohol to customers. This will
include all servers, bartenders and all managers and must be scheduled to occur no
later than November 11, 1999. This training will be provided at a location to be
determined by Public Safety staff and all costs associated with the training, to include
staff time .and materials, will be the responsibility of the Licensee.
4. Meet with the Director of Public Safety to review why the Licensee's action plan didn't
work and discuss opportunities for change and improvement on or before November 11,
1999.
Passed by the City Council of the City of Richfield this 11th day of October, 1999.
ATTEST:
Martin J. Kirsch, Mayor
Thomas P. Ferber, City Clerk
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 238
Agenda October 11, 1999
Issue Statement:
Public hearing and second reading regarding an ordinance to authorize a capital
improvement to construct a recreation and community center.
Background:
In the last year, a citizen task force has explored the potential of creating a recreation
and community center. In the course of that investigation a series of public meetings
was conducted wherein input from the general public was invited and received. The
work of the task force has culminated with a drawing and cost estimate of a proposed
facility which would meet the needs of a community recreation and community center
complex.
On August 23, 1999 the City Council authorized staff to conduct a bond referendum
election in conjunction with the November 2 school board election.. The referendum
was for potential authorization to issue General Obligation Bonds for a new community
and recreation center facility. The Richfield Community and Recreational Task Force
formally recommended that the proposed facility be funded with General Obligation
Bonds at the conclusion of their year-long study.
During the planning process, the City worked with architectural consultants Short Elliot
Hendrickson (SEH) to assist with the proposal development. When this feasibility study
was approved by the City Council in August 1998, staff and the City Council
acknowledged that the planning process would be held to a budget of less than $75,000
to remain in compliance with the Richfield City Charter, Section 8.04. SEH has
provided information regarding the likely cost of the project which is now estimated to be
approximately $9.5 million, which includes engineering and design costs. If the funding
mechanism of the General Obligation Bonds is approved, the design and engineering
costs for the facility would represent approximately $600,000 of this cost, exceeding the
$75,000 threshold and requiring this ordinance.
The attached transitory ordinance reflects the City Charter requirement pursuant to
Section 8.04 and includes an estimate of the project costs as well as estimated design
and engineering costs.
Staff has completed a preliminary draft of an operating budget for the new community
center (attached). Ehlers and Associates has reviewed the preliminary budget and has
provided their reaction (attached).
Recommended Motion:
Conduct a public hearing and second reading of an ordinance to authorize expenditures
for the planning and construction of a recreation and community center pursuant to
Richfield Charter, Section 8.04.
7-i
Basis of Recommendation:
1. A task force comprised of community residents has recommended the City Council
consider the construction of a community and recreation center.
2. The City Council has considered a request to seek public approval of General
Obligation Bond financing for the construction of a community and recreation center
to be determined by the voters on November 2, 1999.
3. City Charter, Section 8.04 requires that a project in excess of $500,000 and $75,000
worth of planning and engineering services must be considered. by City ordinance
pursuant to Charter Section 8.04.
4. Consideration of first reading of this ordinance with respect to this project was held
on September 13.
Alternative Recommendation:
1. Do not pass the ordinance on this reading.
2. Defer the public hearing and second reading for a date other than October 11.
Discussion/Decision Mode:
Staff is requesting that the City Council hold this public hearing and second reading at
the October 11 meeting, well in advance of the referendum vote.
R c ully submitted,
n L. Devich
Acting City Manager
SLD:ds
~_~.
TRANSITORY ORDINANCE NO.
AN ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT TO
CONSTRUCT A RECREATION AND COMMUNITY CENTER, PURSUANT TO
RICHFIELD CITY CHARTER SECTION 8.04
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Background: findings.
1.01. Section 8.04 of the Richfield City Charter requires that any capital improvement on
City-owned property that has an estimated cost exceeding $500,000.00 or expenditures
for design or engineering costs exceeding $75,000.00 must be approved by ordinance
after a public hearing.
1.02. It is proposed that the City Council approve a capital improvement project on City
owned property located at Veteran's Memorial Park, 6401 Portland Avenue, in the city of
Richfield.
1.03. The capital improvement project consists of amulti-purpose recreation and
community center (the "Recreation and Community Center Project").
1.04. The estimated construction cost of the capital improvement, including design and
engineering costs, is $9,500,000. The estimated design and engineering portion is
$600,000.
1.05. A public hearing was held on October 11, 1999 after due notice as required by
Section 8.05 of the Richfield City Charter. A public hearing approving the bond
referendum election for the project was held on August 23, 1999, with due notice
published in the City's official newspaper.
1.06. The Council finds .and determines that it is in the best interests of the City and its
inhabitants that the Recreation and Community Center Project be approved. On August
23, 1999, the Richfield Community and Recreational Center Task Force reported their
findings after a year of study and dialogue with the citizens of Richfield.
Sec. 2. Approval: effective date.
2.01. The Recreation and Community Center Project is approved, and planning, design
and construction of the Project may proceed according to the procedures required by law.
2.02. The purpose of this Ordinance is to comply with the requirements of Section 8.04 of
the Richfield City Charter. This Ordinance shall not be construed to require that the City
proceed with the Project; nor does it vest any rights in the Project to any individual or
entity. The City Council reserves the right to abandon the Project or to modify elements of
the Project, if the Council deems abandonment or modification to be in the public interest.
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• 2.03. This ordinance is effective 30 days following its publication.
Adopted by the City Council of the City of Richfield, Minnesota this 11th day of October,
1999.
Martin J. Kirsch, Mayor
ATTEST:
Thomas P. Ferber, City Clerk
•
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~ EHLEaS
ASSOCIATES tN~ M E M O R A N D U M
TO: Jim Topizhofer, City of Richfield
FROM: Mark Ruff-Ehlers & Associates
DATE: September I3, 1999
RE: Community Center Projected Operating Revenues and Expense
As requested, we have reviewed the City staffs projected community center operating revenues and
expenditures. The purpose of the revenue was to determine whether or not the Ciry staff s estimates can be
achieved given the e:cperience of other cities' facilities and the unique facets of the proposed Richfield
facilit)~. The methodology of our review was to primarily rely upon the staffestimates, but also compare the
estimates to other projects with which we are familiar. We have assisted three other Minnesota cities with
plans for financinb community centers in the past year alone.
Samnuary
It is our opinion that the revenue and expense estimates are achievable, if the City Council is intentional
about pricing the services. of the facility to maximize revenues. Many cities aze not intentional about
maximizing revenues, therefore, most of the city-owned communitycenters in this area do not pay for ! 00%
of the operating expenses with operating revenues. Examples of maximizing revenues include:
/ Requiring market rate payments for ancillary services such as child care, lockers, banquets, and
meeting rooms. .
/ Pricing programs to recognize the costs of labor adequately such as fees for swimming Iessons.
•~ Eliminating programs which may initially be popular but decline In numbers over time such as
certain fitness classes.
/ Designing the facility to maximize revenues and m inimi~e variable costs. Design issues include the
most efficient HVAC systems, surfaces in the pool and floors which aze easily maintained, and
centralized control points which require fewer stafl'to be on•site. Labor cosu are approximately
60% of the operating budget and could easily increase faster than revenues over time.
/ Incorporating a marketing budget and capital replacement budget in the operating costs which allows
for proper exposure for the facility and new equipment to maintain the "novelty" of the facility.
Operatieg Expenses
Operating expenses are more easily comparable to other facilities than operating revenues. The Staff
estimates for expenses seem to mirror comparable facilities such as Shoreview and Maplewood. We also
utilized a per square foot analysis for the non-staff costs based upon nation-wide surveys and found the
estimates to be slightly higher than average.
Operating Revenues
. ?he projections for operating revenues for the facility assume that the facility has reached stabilized use.
~ -~
Most other facilities have found that it requires at least one to t<vo years after opening to reach a stabilized
use level.
The revenue projections appearreasonable forthe numbecof user expected through memberships and daily.
passes. The ancillary services are aggressively priced, with the exception of the banquet facility. We would
recommend that the City review the banquet projections with the food and beverage consultant it has utilized
on other projects... The consultant in the past has recommended a lease arrangement with a major food
service firm which would slightly increase risk to the City but would also increase the revenue potential.
Conclusion
Projecting revenues and expenses for a new and unique public facility does contain at least a 15% to 25%
margin for error. Much of the variation depends upon the market for the facility, the design and policy
decisions of the City related to pricing for the facility. The location for Richfield's facility and the
opportunity for significant banquet facility revenue does give the City the opportunity to achieo•e a level of
operating revenues which will meet operating expenses.
from the desk of
Mask Rxf j`'
Vice President
Fblen f+Associates, Inc.
3060 Centre Points Drive
Roseville,1111Y SS113
Pbone: (6S1) 697.8SOS
Fax: (dSl) 697-SSSS
EMaib mark~eblers-inc.com
CITY OF RICHFIELD MINNESOTA `~
Council Letter No. 237
Agenda October 11, 1999
Issue Statement:
Public hearing and consideration of a modification to the Gramercy and Urban Village
Tax Increment Financing District Plans; modification to the Richfield Redevelopment
project area plan; establishment of the Richfield Redevelopment 1999 Tax Increment
Financing District; and creation of the Richfield Redevelopment 1999 Tax Increment
Financing District Plan.
Background:
Since 1990, the Richfield Rediscovered New Construction Program has provided the
vehicle for the purchase and clearance of small, substandard houses and availability of
vacant lots for the construction of larger, single family homes. The demand for this new
housing continues. Over time, however, the dynamics of the program has changed
such that a new approach to funding was required in order to sustain the program. To
that end, the Housing and Redevelopment Authority (HRA) and City Council has
recently completed actions to provide funding for the next several years. The new 1999
program cycle is specifically aimed at:
• Providing a composite list of 33 qualifying candidate properties for acquisition;
• Purchasing and demolishing approximately 28 substandard properties- (including
seven early acquisition properties) over a four year period (or approximately seven
per year);
• Providing for the construction of approximately seven new homes per year valued at
an average market value of $135,000. (This proposed modification incorporates
those recent actions of the HRA and City Council with regards to financing and
updates the list of candidate properties that could be purchased by the program.);
• Generating land sale proceeds in the average amount of $30,000 per lot as a
source of program revenue;
• Providing a revenue source for 30 to 40 housing renovations under the
transformation housing element of the program;
• Utilizing the 15 percent housing trust fund revenue source from the Gramercy and
Urban Village tax increment projects;
• Issuing general obligation tax increment revenue bonds in an amount not to exceed
$4,827,586 (over a four year period) with an initial bond issue of $1.7 million; and
• Re-evaluating future bonding options after two years.
The Redevelopment Plans and Tax Increment Plans under the current proposal are
attached for review (Exhibits B and C). The following is a summary of these plans. It is
l.!/
encouraged that the maps, budgets, and cashflows contained within the plans be
• reviewed in conjunction with this summary.
Modification of Richfield Redevelopment Project Area Plan:
• Project boundary expansion to incorporate the contours of the former Richfield
Rediscovered Project Areas A and B. (The two separate project areas under the
program in the past will no longer be used due to funding strategy under the 1999
cycle.) Additional information is located in Appendix A of the Modification to the
Redevelopment Plan, attached Exhibit B, six pages from the end of the document.
• Identification of 33 scattered sites within the project area which are qualifying,
substandard candidate properties for acquisition and redevelopment. Additional
information is located in Appendix B of the Modification to the Redevelopment Plan,
attached Exhibit B, five pages from the end of the document.
Modification to the Gramercy Tax Increment Financing Plan:
Budget modification to allow for additional expenditures and the issuance of new debt
for the purpose of supporting the Richfield Rediscovered activity. (Permits use of the
housing trust fund revenues associated with the Gramercy co-op.)
Modification to the Urban Village Tax Increment Financing Plan:.
Budget modification to allow for additional expenditures and the issuance of new debt
for the purpose of supporting the Richfield Rediscovered activity. (Permits use of the
• housing trust fund revenues associated with this project.)
Establishment of the Richfield Rediscovered 1999 Tax Increment Financina
District (redevelopment district,:
• Creation of a new scattered-site, tax increment redevelopment district consisting of
33 parcels within the modified Richfield Redevelopment Project Area whose term is
not to exceed 25 years.
• Provision for the acquisition, demolition, and construction of 28 new single family,
market-rate homes based on the current funding level.
• Establishment of new tax increment sources and uses budgets.
• Provision for bonding capacity not to exceed the budgeted amount of $4,827,586.
In order to implement the proposed program, the attached resolution is proposed for
adoption by the City.
Recommended Motion:
Hold the public hearing and consider the adoption of the following resolution:
Resolution modifying the Richfield Redevelopment Project Area and adopting the
modification to the Redevelopment Plan related thereto; modifying the Tax Increment
Financing Plan for the Gramercy Tax Increment Financing District; modifying the Tax
Increment Financing Plan for the Urban Village Tax Increment Financing District;
~~
establishing within the Richfield Redevelopment Project Area the Richfield
• Rediscovered 1999 Tax Increment Financing District and adopting the Tax Increment
Financing Plan related thereto, all relating to the Richfield Rediscovered New
Construction Program.
Basis of Recommendation:
1. The Richfield Rediscovered New Construction Program continues to be a successful
program which clears small, substandard .houses and provides vacant lots for the
construction of larger single family homes in the community.
Acting Executive Director
2. Richfield Rediscovered is a proven redevelopment program yet'requires the
modification of its plans from. time to time in order to provide updated lists of
qualifying properties, tax increment budgetary considerations and funding
opportunities.
3. The HRA approved the proposed plans and modifications on September 20, 1999
and requested the City Council to hold a public hearing and approve the same.
4. The Planning. Commission reviewed the proposed plans and modifications on
September 28, 1999 and has made an affirmative finding with regard to the
conformity of the plans, land acquisition, and disposition to the Comprehensive Plan
of the City.
• 5. The HRA's development consultant, Ehlers and Associates, Inc., has prepared the
plans in conjunction with legal counsel's review and found them to be in compliance
with existing law.
Alternative Recommendation:
1. Modify the proposed program.
2. Delay action until a future time.
Discussion/Decision Mode:
The proposed modifications to existing plans and creation of new plans are being
processed to provide updated candidate property lists for construction opportunities for
the two to four years under a proposal which provides bonding capabilities for the
program.
Re ectf Ily subm' d,
i
' ~~
. De
. SLD:ds
Attachments
63
. RESOLUTION NO.
RESOLUTION MODIFYING THE RICHFIELD REDEVELOPMENT PROJECT AREA
AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN
RELATING THERETO; MODIFYING THE TAX INCREMENT FINANCING PLAN FOR
THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; MODIFYING THE TAX
INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT
FINANCING DISTRICT; ESTABLISHING WITHIN THE RICHFIELD
REDEVELOPMENT PROJECT AREA, RICHFIELD REDISCOVERED 1999 TAX
INCREMENT FINANCING DISTRICT AND ADOPTING THE TAX INCREMENT
FINANCING PLAN RELATED THERETO; ALL RELATING TO THE
RICHFIELD REDISCOVERED NEW CONSTRUCTION PROGRAM
BE IT RESOLVED, by the City Council (the "Council") of the City of Richfield,
Minnesota (the "City") as follows:
Section 1. Recitals
1.01 The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "HRA") has heretofore adopted the Modification to the .Redevelopment
Plan for the Richfield Redevelopment Project Area, Modification to the Tax Increment
. Financing. Plan for the Gramercy Tax Increment Financing District, Modification to the
Tax Increment Financing Plan for the Urban Village Tax Increment Financing District,
established the Richfield Rediscovered 1999 Tax Increment Financing District, and
adopted the Tax Increment Financing Plan related thereto, (collectively, the "Plans"), all
related to the Richfield Rediscovered New Construction Program, and all pursuant to
and in conformity with existing law, including Minnesota Statutes, Sections 469.001
through 469.047, and Sections 469.174 to 469.179, inclusive, as amended, all as
reflected in the Plans and presented for the Council's consideration for proposed
approval
1.02 The Council has investigated the facts relating to the Plans.
1.03 The City or HRA has performed all actions required by law to be
performed prior to the adoption and approval of the Plans, including, but not limited to,
notification of Hennepin County and School District No. 280 having taxing jurisdiction
over the property to be included in Gramercy, Urban Village, and Richfield
Rediscovered 1999 Tax Increment Financing Districts, notice of the modifications and
proposed redevelopment district to the local county commissioner, a request for review
of and written comment on the Plans by the City Planning Commission, and the holding
of a public hearing upon published notice as required by law.
. 1.04 Certain written reports (the "Reports") relating to the Plans and to the
activities contemplated therein have heretofore been prepared by staff and submitted to
(a-`1
the Council and/or made a part of the City files and proceedings on the Plans. The
Reports include data, information, and/or substantiation constituting or relating to (1)
the "studies and analyses" on why the new Richfield .Rediscovered 1999 Tax Increment
Financing District meets the so-called "but for" test; and (2) the basis for the other
findings and determinations made in this resolution. The Council hereby confirms,
ratifies, and adopts the Reports, which are hereby incorporated into and made as fully
apart of this resolution to the same extent as if set forth in full herein.
Section 2. Findings for the Adoption of the Modified Plans for Richfield
Redevelopment Project Area. Gramercy Tax Increment Financing District, and Urban
Village Tax Increment Financing District
2.01 The Council hereby finds that the Modified Plans are intended .and, in the
judgment of this Council, the effect of such actions will be, to provide an impetus for
redevelopment in the public purpose and accomplish certain objectives as specified in
the Plans, which are hereby incorporated herein.
Section 3. Findings for the Establishment of Richfield Rediscovered 1999 Tax
Increment Financing District
3.01 The Council hereby finds that Richfield Rediscovered 1999 Tax Increment
Financing District is in the public interest and is a "redevelopment district" under
Minnesota Statutes, Section 469.174, subd. 10(a)(1).
3.02 The Council further finds that the proposed development would--not occur
solely through private investment within the reasonably foreseeable future and that the
increased market value on the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the increase in the market value
estimated to result from the proposed development after subtracting the present value
of the projected tax increments for the maximum duration of Richfield Rediscovered
1999 Tax Increment Financing District permitted by the Tax Increment Financing Plan;
that the Plans conform to the general plan for the development or redevelopment of the
City as a whole; and that the Plans will afford maximum opportunity consistent with the
sound needs for the City as a whole, for the development of Richfield Rediscovered
1999 Tax Increment District by private enterprise.
3.03 The City elects to make a qualifying contribution in accordance with
Minnesota Statues, Section 273.1399, subd. 6(d) in order to qualify
Richfield Rediscovered 1999 Tax Increment District for exemption from
state aid losses set forth in Section 273.1399, subd. 6(c).
Section 4. Approval and Adoption of the Plans
. 4.01 The Plans, as presented to the Council on this date, including without
limitation the findings and statements of objectives contained therein, are hereby
(~_~
approved, ratified, established, and adopted and shall be placed on file in the office of
the City Clerk.
4.02 The staff of the City, the City's advisors and legal counsel are authorized
and directed to proceed with the implementation of the Plans and to negotiated, draft,
prepare, and present to this Council for its consideration all further plans, resolutions,
documents, and contract necessary for this purpose.
4.03 The Auditor of Hennepin County is requested to certify the original net tax
capacity of Richfield Rediscovered 1999 Tax Increment Financing District, as described
in the Plans, and to certify in each year thereafter the amount. by which the original net
tax capacity has increased or decreased; and the City of Richfield is authorized and
directed to forwith transmit this request to the County Auditor in such .form and content
as the Auditor may specify, together with a list of all properties within Richfield
Rediscovered 1999 Tax Increment Financing District, for which building permits have
been issued during the 18 months immediately preceding the. adoption of this
resolution.
Adopted by the City Council of the City of Richfield, Minnesota this 11th day of
October, 1999.
Martin J. Kirsch, Mayor
ATTEST:
141' lL~
Exhibit A
The reasons and facts supporting, the fmdings for the adoption of the Tax Increment Financing Plan for
Richfield Rediscovered 1999 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows:
1. Finding that Richfield Rediscovered 1999 is a redevelopment district as defined in M.S., Section
469.174, Subd. 10(a) (1).
Richfield Rediscovered 1999 consists of 33 parcels, with plans to redevelop the area for
residential purposes. The Council generally believes that each of the parcels in the District are
occupied by buildings, streets, utilities, or other improvements and the buildings in Richfield
Rediscovered 1999, not including outbuildings, are structurally substandard to a degree requiring
substantial renovation or clearance. Because Richfield Rediscovered 1999 is a scattered site
redevelopment district, each parcel qualifies individually. These findings are based upon general
information about buildings of similar age and construction because building owners did not
consent to interior inspections at this time. Prior to a parcel being certified with Hennepin
County, an interior inspection will be conducted to confirm that the redevelopment district
criteria have been met. (See also Appendix D)
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably
be expected to occur solely through private investment within the reasonably foreseeable future
and that the increased market value of the site that could reasonably be expected to occur
without the use of tax increment financing would be less than the increase in the market value..
estimated to result from the proposed development after subtracting the present value of the
projected tax increments for the maximum duration of Richfield Rediscovered 1999 permitted by
the Plan.
Due to the high cost of redevelopment on the parcels currently occupied by substandard
buildings and the cost of fmancing the proposed improvements, this project is feasible only
through assistance, in part, from tax increment fmancing.
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 fording that no development with a market value
of greater than $1,478,866 would occur without tax increment assistance in this district within 25
years. This finding is based upon evidence from general past experience with the high cost of
acquisition and site improvements in the general area of Richfield Rediscovered 1999 (see
Cashflow in Appendix C).
3. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 conforms to the
general plan for the development or redevelopment of the municipality as a whole.
The Plan will be reviewed by the Planning Commission on September 28, 1999 in order to find
that the Plan is in conformance with the general development plan of the City.
r~
~~
Exhibit A-1
4. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 will afford
maximum opportunity, consistent with the sound needs of the City as a whole, for the
development or redevelopment of Richfield Redevelopment Project Area by private enterprise.
The project to be assisted by Richfield Rediscovered 1999 will result in the redevelopment and
renovation of substandard properties, increased tax base of the State and add a high quality
development to the City.
Exhibit B
•
Draft as of September 15, 1999
Draft for City Council 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:
Prepared by:
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, Minnesota 55113-1.105
Phone: (651) 697-8500
Fax: (651) 697-8555
E-mail info@ehlers-inc.com
Web Site: www.ehlers-inc.com
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TABLE OF CONTENTS
(for reference purposes only)
SECTION I -MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA ...................... 1-1
Foreword ......... ...................................................... .1-1
Subsection C. Description of Redevelopment Project Area ......................... 1-1
Subsection G. Acquisition and Relocation Activities .............................. 1-2
SECTION II - 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 FINANCINGDISTRICT ..................... 3-1
Foreword .............................................. .....................3-1
SECTION IV -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. Legal Description of Property in Richfield Rediscovered 1999 .......... 4-2
Subsection 4-6. Classification of Richfield Rediscovered 1999 TIF District ............. 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
1~ ~[
REDEVELOPMENT QUALIFICATIONS FOR THE RICHFIELD REDISCOVERED 1999 TAX
INCREMENT FINANCING DISTRICT .......................................... D-1
•
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SECTION I
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 Redevelopment Plan for Richfield Redevelopment Project Area,
adopted July 16, 1990, is recommended. It is available in the Community Development Department of the
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 ofPenn Avenue. Thence, northerly;
along said center line to its intersection with the center line of 78`'' 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 76`'' 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 73~a 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 74`'' 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 66`'' 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 65`'' 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 of the west roadway of Pleasant Avenue. Thence, southerly
along said center line to its. intersection with the center line of 63`d 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. 2?-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`h Street.
Thence, easterly along said center line to the center line of ls` 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.) referrals 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 I1 ~
for relocation.
•
Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area A 1-2
la`i3
SECTIONII
• MODIFICATION TO 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"), staff and
consultants have prepared the following information to expedite a modification to the Tax Increment
FinancingPlan for the 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 1.999 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 $95;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 $3,357,586
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 2-1
(~-I'}
•
Sources of Funds
Tax Increment
Local Contribution
Land Sales
Other Tax Increment
TOTAL
Original Total
$30,875,000
$ I ,625,000
$32,500,000
Richfield Redisc. 1999
$1,075,860
$53,793
$840,000
$2,857,927
$4,827,580
Amended Total
$31,950,860
$1,678,793
$840,000
$2,857,927
$37,327,580
Richfield HRA Modification to the Tax Increment Financing Plan for the Gramercy Tax Increment Financing District 2-2
lcrl~
•
•
SECTION III
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 Richfield Redis. 1999 As Amended
Land Acquisition $2,000,000 $1,820,000 $3,820,000
Site Improvements 2,000,000 $2,000,000
Demo./Relocation $280,000 $280,000
Public Improvements - 7,000,000 $7,000,000
public road
Public Utilities -parkway 2,000,000 $2,000,000
Trust Fund 2,000,000 $2,000,000
Rehabilitation $1,120,000 $1,120,000
Interest 8,750,000 $1,500,000 $10,250,000
Admin u to 10% 2,500,000 $107,586 $2,607,586
TOTAL $26,250,000.0 $4,827,586 $31,077,586
Subsection 3-11. Sources of Revenue/Bonded 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 $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 I3RA Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District 3-1
~-rto
Sources of Funds
Tax Increment
Local Contribution
Land .Sales
Other Tax Increment
TOTAL
•
Original Total Richfield Redisc. 1999 Amended Total
$25,000,000 $1,075,860 $26,075,860
$1,250,000 $53,793 $1,303,793
$840,000 $840,000
$2,857,927 $2,857,927
$26,250,000 $4,827,580 $31,077,580
Richfield HRA Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District 3-2
~ r~
SECTION IV
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 IncrementFinancing 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 Richfield Rediscovered 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 of 32 parcels of land and adjacent and 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.Redevelopment Plan Overview
1. Property to beAcquired -Selected property located withinRichfieldRediscovered
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
l.Q'""~ O
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
6220 Clinton Avenue
6608 Stevens Avenue
6625 3`d Avenue
6637 5`h Avenue
6800 Pillsbury Avenue
6744 Blaisdell Avenue
6833 Park Avenue
6833 Grand Avenue
7036 151 Avenue
7241 2"" Avenue
7316 Clinton Avenue
7301 Garfield Avenue
7544 2"d Avenue
7333 Emerson Avenue
6928 14`h Avenue
6915 13`h Avenue
7133 Lyndale Avenue
7025 Nicollet Avenue
6315 Newton Avenue
6310 Irving Avenue
6306 Irving Avenue
6320 Girard Avenue
6645 Knox Avenue
6800 Logan Avenue
6912 Penn Avenue
6933 Queen Avenue
6855 Penn Avenue-
6833 Penn Avenue
6929 Queen Avenue
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District
Address
27-028-24- I 1-0001
27-028-24-42-0073
27-028-24-41-0084
27-028 24-41-0015
27-028-24-34-0016
27-028-24-31-0007
26-028-24-33-0086
27-028-24-33-0070
34-028-24-12-0015
34-028-24-13-0150
34-028-24-14-0086
34-028-24-23-0129
34-028-24-42-0104
33-028-24-13-0090
26-028-24-43-0069
26-028-24-43-0064
34-028-24-22-0055
34-028-24-12-0022
28-028-24-22-0097
28-028-24-21-0075
28-028-24-21-0126
28-028-24-12-0033
28-028-24-31-0032
28-028-24-33-0001
29-028-24-44-0161
29-028-24-44-0170
28-028-24-33-0146
28-028-24-33-0045
29-028-24-44-0171
4-2
6901 12`h Avenue 26-028-24-43-0082
6945 Clinton Avenue 27-028-24-44-0108
7615 Pillsbury Avenue 34-028-24-34-0045
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 authority frnds 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 or a combination ofdefrciencies inessential utilities andfacilities, light and
ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors, which defects or defrciencies are of suff cient total significance
to justify substantial renovation or clearance.
(c) A building is not structurally substandard fit 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 frnds 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) Forpurposes of this subdivision, a parcel is not occupied by buildings,. streets, utilities or other
improvements until l S percent of the area of the parcel contains improvements..
(~ For districts consisting of two or more noncontiguous areas, each area must qual ~ as a
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-3
U/~~
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 HRA rely on the following facts and findings:
^ Richfield Rediscovered 1999 is a redevelopment district consisting of 32 parcels.
^ An inventory of the parcels shows that at least 70 percent of the area of Richfield 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 SO 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.
2.
3.
4.
5.
6.
change in tax exempt status of property;
reduction or enlargement of the geographic boundaries of the district;
change due to adjustments, negotiated or court-ordered abatements;
change in the use of the property and classification;
change in state law governing class rates; or
change in connection with previously issued building permits.
In any year in which the current Net Tax Capacity value of Richfield Rediscovered 1999 declines below the
ONTC, no value will be captured and no tax increment will be payable to the City or HRA.
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 payable 1999.
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
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-4
!O ~Ou
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 c6mpleted.
Project Estimated Tax Capacityty
upon Completion of Project (PTC) $48,538
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.
1. Any properties identified for acquisition will be acquired by .the City or HRA 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 may be 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 is assurance of funding to finance the acquisition and
related costs.
Subsection 4-10. Uses of Funds
Currently under consideration for Richfield Rediscovered 1999 is a proposal to facilitate the acquisition and
demolition of substandard houses and enable home buyers to construct new houses on the lots. The City and
HRA have determined that itwill 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 Total
Land Acquisition $1,820,000
Site Preparation/Demolition/Grading 280,000
Rehabilitation 1,120,000
Interest 1,500,000
Administrative Costs (up to LO%) 107,586
TOTAL $4,827,580
Estimated costs associated with Richfield Rediscovered 1999 are subject to change. The cost of all activities
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-5
~~~
t~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
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 inthe 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 of the Plan.
As presently proposed, the project maybe 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 HRA 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 HRA
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
Land Sales
Other Tax Increment
Local Contribution
$1,075,860
840,000
2,857,927
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:
L 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;
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-6
~~
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
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 of the City or HRA,
the following estimated impact of Richfield Rediscovered 1999 would be as follows if the "but for" testwas
not met:
IMPACT ON TAX BASE
1998/1999 Estimated Captured
Total Net Tax Capacity (CTC) Percent of CTC
Tax Capacity Upon Proiect Completion to Enti , 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 will be certified under the actual 1999/200 rates, which
were unavailable at the time this Plan was prepared.
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-7
lD ~~
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 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 ofRichfield Rediscovered 1999 will be handled bythe Executive Director ofthe HRA ofthe
City of Richfield.
Subsection 4-17. Munic_pal 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 32 parcels, with plans to redevelop the area for residential
purposes. The Council generally believes that each of the parcels in the District are occupied by
buildings, streets, utilities, or other improvements and the buildings in Richfield Rediscovered 1999,
not including outbuildings, are structurally substandard to a degree requiring substantial renovation
or clearance. Because Richfeld 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 reasonablyforeseeable future and that
the increased market value of the site that could reasonably be expected to occur without the use of
tax increment frnancing 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
Richfield I-IR.4 Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-8
~~a~
Increment Financing Richfield Rediscovrred 1999 and the use of tax increments has been performed
as described above. If all development which is proposed to be assisted with tax increment were to
.occur in Richfield Rediscovered 1999, the total increase in market value would be up to $1,960,000
It is the Council's finding that no development with a market value. of greater than $1,478,866 would
-occur without tax increment assistance in this district within 25 years. This finding is based upon
evidence from general past experience with the high cost of acquisition and site improvements in the
general area of Richfield Rediscovered 1999 (see Cashflow in Appendix C).
3. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 conforms to the
general plan for the development or redevelopment of the municipality as a whole.
The Plan will be reviewed by the Planning Commission on September 28, 1999 in order to find that
the Plan is in conformance with the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development or
redevelopment of Richfield Redevelopment Project Area by private enterprise.
The project to be assisted by Richfield Rediscovered 1999 will result in the 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
Pursuant to M.S., Section 273.1399, fortax incrementfinancing districts for which certification was requested
after Apri130,1990, 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
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-9
lO O~~
general government purposes.
The City elects to make the annual local contribution to the project to exempt itself from the LGA-
HACApenalty. The City or HRA will pay for costs ofthe project described in this Plan, in an amount equal
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 ofthe City's net tax capacity. Such contribution
maybe inform 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 HRA 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, Minnesota 55402-4100, telephone (651) 697-8500.
•
Richfield HRA Tax Increment Financing Plan for Richfield Rediscovered 1999 Tax Increment Financing District 4-10
~-a~
APPENDIX A
BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND
THE RICHFIELD REDISCOVERED .1999 TAX INCREMENT FINANCING DISTRICT
•
APPENDIX A-1
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•
.-
APPENDIX B
LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
~ ~~9
• THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT
Address PID Number
6220 Clinton Avenue 27-028-24-I 1-0001
6608 Stevens Avenue 27-028-24-42-0073
6625 3`d Avenue 27-028-24-41-0084
6637 5`h 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 15` 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"d Avenue. 34-028-24-42-0104
7333 Emerson Avenue 33-028-24-13-0090
.6928 14"' Avenue 26-028-24-43-0069
• 6915 13`'' Avenue 26-028-24-43-0064
7133 Lyndale Avenue 34-028-24-22-0055
7025 Nicollet Avenue 34-028-24-12-0022
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.
6855 Penn Avenue. 28-028-24-33-01.46
.6833 Penn. Avenue 28-028-24-33-0045
6929 Queen Avenue 29-028-24-44-0171
6901 12`h 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
C
•
APPENDIX C j„ ,.~ 3~
ESTIMATED CASH FLOW FOR THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT
FINANCING DISTRICT
APPENDIX
C-1
ny~ <
~-~31
CITY OF RICHFIELD, MINNESOTA
TAX INCREMENT FINANCING DISTRICT -RICHFIELD REDISCOVERED
TAX INCREMENT CASH FLOW
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 acit 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-Ot 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 2001
2.0 08-01 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 OS-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 OS-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 OS-01 2005 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 5.0 6.5 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 08-01 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 OS-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 OS-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 08-01 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 OS-01 2012
13.0 08-01 2012 18,200 48,538 30,338 22,891. (2,346) 20,544 1,145 12.0 13.5 02-01 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 OS-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 08-01 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 OS-01 2016
17.0 08-01 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 02-01 201.8
18.5 02-01 2018 18,200 48,538 30,338 22,891 (2,346) 20,544 1,145 17.5 19.0 OS-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 3Q338 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 OS-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 08-01 2021
22.0 OS-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 OS-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 08-01 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 Assodates, Inc.
Plani.wk4
uaiuni~ rage i
CITY OF RICHFIELD, MINNESOTA ~-~3 Q~.
TAX INCREMENT FINANCING DISTRICT -RICHFIELD REDISCOVERED
T.LF. 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 Totali 48,538 (7 a year for four years)
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.
Difference 3,780,000
1,960,000
Present Value of Tax Increment 481,134
Difference .1,478,866
Value Likel to Occur WRhout TIF is Less Than: 1,478,866
•
Ehlers and Associates, Inc. PIanl.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 properly 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.
Exhibit C
~`3~ ~
•
Ehlers and Associates
Tax Increment Financing District Overview
City of Richfield:
The Modification to the Redevelopment Plan for the Richfield
Redevelopment Project Area; Modification to the Tax Increment
Financing Plans for the Gramercy and Urban Village Tax Increment
Financing Districts; Establishment of Rihfield Rediscovered 1999 Tax
Increment Financing District
Proposed action: 1. Modify the boundaries of the Richfield Redevelopment
Project Area to include the projects proposed within the Tax
Increment District and adopt the Modification to the
Redevelopment Plan
2. Adopt the modification to the TIF Plan for the Gramercy Tax
Increment Financing District.
3. Adopt the modification to the TIF Plan for the Urban Village
Tax Increment Financing District
2. EstablishmentofRichfieldRediscovered 1999 Tax Increment
Financing District and the adoption of a plan.
Gramercy Modifications The Modification includes a modification to the budget to
allow for additional expenditures and the issuance of debt for
the purpose of supporting the Richfield Rediscovered activity
Urban Village Modifications The Modification includes a modification to the budget to
allow for additional expenditures and the issuance of debt for
the purpose of supporting the Richfield Rediscovered activity
Type of TIF District Richfield A "Scattered Site" Redevelopment District
Rediscovered 1999 ("RR1999")
Parcel Numbers for RR1999: See attached parcel list
Locations: See the attached map
Proposed development: 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.
Estimated annual tax increment: $66,380
°3~
T1F District Overview
Proposed uses: 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
Form of financing: As presently proposed, the project may be financed by a bond
issue or loans.
Maximum duration: 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 ofthe
Plan for subsequent phases or other changes, would terminate
after 2026, or when the Plan is satisfied.
Administrative fee: Up to 10% of annual increment, if costs are justified.
Fiscal Disparities: No commercial/industrial property is expected to be constructed
in Richfield Rediscovered 1999.
. LGA/HACA penalty: The City elects to make .the annual local contribution to the
project to exempt itself from the LGA-RAGA penalty.
Contribution for an redevelopment district is 5% of annual tax
increment. The contribution can be made annually or in larger
contribution throughout the life of the district.
r:
Page 2
~ -3~
TIF District Overview
3 Year Activity Rule At least one of the following activities must take place in the District
0469.176 Subd. 1 a) within 3 years from the date of certification:
^ bonds have been issued
^ the authority has acquired property within the district
^ the authority has constructed or caused to be constructed public
improvements within the district
The estimated date whereby this activity .must take place is October,
2002.
4 Year Activity Rule If after four years from the date of certification of the District one of the
(~ 469.176 Subd 6) following activities must have been commenced on each parcel in the
District:
^ demolition
^ rehabilitation
^ renovation
^ other site preparation (not including utility services such as sewer and
water)
If the activity has not been started by the approximately October, 2003,
no additional tax increment may be taken from that parcel until the
commencement of a qualifying activity.
5 Year Rule Within 5 years ofcertification revenues derived from tax increments must
(~ 469.1763 Subd 3) be expended or obligated to be expended. Tax increments are considered
to have been expended on an activity within the District if one of the
following occurs:
^ the revenues are actually paid to a third party with respect to the
activity
^ bonds, the proceeds of which must be used to finance the activity, are
issued and sold to a third party, the revenues are spent to repay the
bonds, and the proceeds of the bonds either are reasonably expected
to be spent before the end of the later of (i) the five year period, or (ii)
a reasonable temporary period within the meaning of the use of that
term under §. 148(c)(1) of the Internal Revenue Code, or are
deposited in a reasonably required reserve or replacement fund
^ binding contracts with a third party are entered into for performance
of the activity and the revenues are spent under the contractual
obligation
^ costs with respect to the activity are paid and the revenues are spent
to reimburse a pay for payment of the costs, including interest on
unreimbursed costs.
Any obligations in the Tax Increment District made after approximately
October, 2004, will not be eligible for repayment from tax increments.
The previous summary contains an overview of the basic elements of the proposed Tax Increment
Financing Plan for the Richfield Rediscovered 1999 Tax Increment Financing District. More detailed
information on each of these topics can be found in the complete TIF Plan.
•
Page 3
~ .-3~
TIF District Overview
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:
Finding that Richfield Rediscovered 1999 is a redevelopment district as defined in M.S.,
Section 469.174, Subd. 10(a) (1).
Richfield Rediscovered 1999 consists of 33 parcels, with plans to redevelop the area for
residential purposes. The Council generally believes that each ofthe 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 oftax increments has been
performed as described above. If all development which is proposed to be assisted with tax
increment were to occur in Richfield Rediscovered 1999, the total increase in market value
would be up to $1,960,000 It is the Council's finding that no development with a market
value of greater than $1,478,866 would occur without tax increment assistance in this district
within 25 years. This finding is based upon evidence from general past experience with the
high cost of acquisition and site improvements in the general area of Richfield Rediscovered
1999 (see Cashflow in Appendix C).
3. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 conforms to
the general plan for the development or redevelopment of the municipality as a whole.
The Plan will be reviewed by the Planning Commission on September 28, 1999 in order to
find that the Plan is in conformance with the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 will afford
maximum opportunity, consistent with the sound needs of the City as a whole, for the
development or redevelopment ofRichfieldRedevelopmentProjectArea byprivate enterprise.
Page 4
~-38
C~
TIF District Overview
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.
•
•
'sue
TIF District Overview
PARCEL LIST OF THE RICHFIELD REDISCOVERED 1999
TAX INCREMENT FINANCING DISTRICT
PID Number
6220 Clinton Avenue
6608 Stevens Avenue
6625 3`d Avenue
6637 5`h Avenue
6800 Pillsbury Avenue
6744 Blaisdell Avenue
6833 Park Avenue
6833 Grand Avenue
7036 15` Avenue
7241 2"d Avenue
7316 Clinton Avenue
7301 Garfield Avenue
7544 2"d Avenue
7333 Emerson Avenue
6928 14~'' Avenue
6915 13`" Avenue
7133 Lyndale Avenue
7025 Nicollet Avenue
6315 Newton Avenue
6310 Irving Avenue
6306 Irving Avenue
6320 Girard Avenue
6645 Know Avenue
6800 Logan Avenue
6912 Penn Avenue
6933 Queen Avenue
6855 Penn Avenue
6833 Penn Avenue
6929 Queen Avenue
6901 12"' Avenue
6945 Clinton Avenue
7615 Pillsbury Avenue
Address
27-028-24-11-0001
27-028-24-42-0073
27-028-24-41-0084
27-028-24-41-0015
27-028-24-34-0016
27-028-24-31-0007
26-028-24-33-0086
27-028-24-33-0070
34-028-24-12-0015
34-028-24-13-0150
34-028-24-14-0086
34-028-24-23-0129
34-028-24-42-0104
33-028-24-13-0090
26-028-24-43-0069
26-028-24-43-0064
34-028-24-22-0055
34-028-24-12-0022
28-028-24-22-0097
28-028-24-21-0075
28-028-24-21-0126
28-028-24-12-0033
28-028-24-31-0032
28-028-24-33-0001
29-028-24-44-0161
29-028-24-44-0170
28-028-24-33-0146
28-028-24-33-0045
29-028-24-44-0171
26-028-24-43-0082
27-028-24-44-0108
34-028-24-34-0045
MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA, GRAMERCY TIF DISTRICT,
Page 6
TIF District Overview ~ -
MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA, GRAMERCY TIF DISTRICT,
URBAN VILLAGE TIF DISTRICT AND RICHFIELD REDISCOVERED 1999
TAX INCREMENT FINANCING DISTRICT
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5
• CITY OF RICHFIELD, MINNESOTA
Council Letter No. 236
Agenda October 11, 1999
Issue Statement:
Cancel a public hearing regarding a request for a conditional use permit for a gas
station/convenience store at 1208 East 66th Street.
Background:
The Planning Commission reviewed a conditional use permit application for a gas
station/convenience store at their meeting on September 28, 1999. The Commission
decided that it needed additional information on the application before making a
recommendation to the City Council. A notice of the City Council public hearing was
published; therefore, it should be cancelled.
Recommended Motion:
Cancel the public hearing regarding a request for a conditional use permit to allow a gas
station/convenience store at 1208 East 66th Street.
Basis of Recommendation:
1. The Planning Commission. requested additional information on the application
before making a recommendation. They will review the additional information on
October 26.
• 2. City Council review of a zoning application is scheduled for the meeting immediately
following the Planning Commission review in order to process applications in a
timely fashion and meet the required 60-day review period. Staff will extend the
review period if it expires before the Planning Commission makes a
recommendation.
Alternative Recommendation:
Continue the public hearing to a date certain.
Discussion/Decision Mode:
The public hearing is cancelled. The hearing will be rescheduled when the Planning
Commission has finished its review of the application.
Re ec ully submitted,
J~
St . Devich
Acting City Manager
SLD:cak
•
y~
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 235
Agenda October 11, 1999
Issue Statement:
Council authorization to extend Contract No. A01384 with Hennepin County to allow
continued access to the property information system.
Background:
Since September 19, 1978 Hennepin County and the City have had a contractual
agreement which provides the City with access to the County's real estate tax
information. From 1978 through October 1989, the City had access to the County's real
estate data via a leased Hennepin County data terminal and printer. In November
1990, the City Council approved the purchase of the Hennepin County data terminal,
software and printer when the County announced that it was getting out of the leasing
business. After purchase of the equipment, the City entered into a contract with
Hennepin County to provide continued access to County data with the City's owned
equipment.
The current contract has provided the City with an extremely economical way to access
Hennepin County real estate, municipal and district- court data. The contract is not
automatically renewable and must be renewed each year by the City and County. The
• City has now received information from Hennepin County announcing the fees for the
contract year 2000 and is asking if the City is interested in renewing this contractual
agreement. The Council action here would be to take advantage of the renewal.
Recommended Motion:
Authorize the City Manager to extend Contract No. A01384 with Hennepin County for
access to the property information system for the period beginning January 1, 2000 and
ending December 31, 2000.
Basis of Recommendation:
1. The. current contract with Hennepin County expires as of December 31, 1999.
2. The contract is a necessary part of the City of Richfield's ability to deliver property
and court data to the public through the on-line connection to Hennepin County
records.
3. The County has announced that 2000 inquiry fees will be charged at the rate of
$.0180 per transaction, which is a slight decrease from the fee charged in 1999
($.0191).
4. The network support charge will remain at $25 per month per workstation. The LAN
connections will be billed at $45. The telephone line charge will remain at $74.60
(plus appropriate tax) per month, subject to rate increases/decreases in phone line
charges.
~--I ~ ~l
5. The contract with Hennepin County is a very economical way for the City to access
and to provide this data to the public.
Alternative Recommendation:
The City could elect not to renew this contract with Hennepin County. However, if this
contract is not renewed, the City would lose its on-line access to County properly tax
and court records.
Discussion/Decision Mode:
Action on this item needs to be taken sometime prior to the end of 1999. However,
since City staff finds no problem with the arrangement proposed by Hennepin County, it
is preferred that the agreement be signed and returned to Hennepin County as soon as
possible.
Efully submitted
/ '~
L. Devich
Acting City Manager
• SLD:ds
•
Hennepin County
RECFI~T~ ~~~
~~T ~~ ', 1a9~
An ;tgE~loper~~ ,~
-~ ~~
September 29, 1999
James Prosser
City of Richfield
6700 Portland Avenue
Richfield, MN 55423
Dear James Prosser:
Contract Number:
A01384
Hennepin County intends to extend the above referenced contract through the year 2000. Attached is a revised
Exhibit A which includes any change in the rates and the connections and charges specific to your contract. The
new rates will go into effect on January 15` and remain in effect until December 31, 2000.
The Network Support Charge remains at $25.00 ($19.00 Basic Service plus $6.00 Host Access) per month for each
connection. LAN connections are billed at $45.00 ($19.00 Basic Service plus $26.00 LAN Access). The
transaction rate has gone down by a small amount and will be billed at $.0180. The telephone or frame relay
charges (if applicable) will remain the same as the current year but will be adjusted accordingly to new rate
increase/decreases imposed by the telephone company. .
USER, BEING A MUNICIPALITY, MUST FURNISH TO THE COUNTY A COPY OF THE ACTION OF
USER'S GOVERNING BODY AUTHORIZING THIS CONTRACT EXTENSION. HOWEVER, IF AN
OFFICIAL OF USER IS AUTHORIZED BY STATUTE OR CHARTER TO APPROVE A CONTRACT OF THIS
AMOUNT AND NATURE THEN THIS LETTER SIGNED BY SUCH OFFICIAL AUTHORIZING THE
EXTENSION MUST BE RETURNED TO THE COUNTY. (Such official must attach to this letter a copy of
his/her statutory or charter authority to approve the contract.)
As authorized by paragraph G.1 of the contract, and noting the above requirements, please indicate below your
intention to extend or not to extend this contract through 2000 and return this document to the attention of Jean
at the address below as promptly as
x * x xPLEASE INDICATE YO
It IS our intention to extend this contract through the year 2000.
It is.NOT our intention to extend this contract through the year 2000
require this service.
SIGNATURE: DATE:
TITLE: -
~**** _I
. We no longer
INFORMATION TECHNOLOGY DEPARTMENT
A-leve1015 Hennepin County Government Center
Minneapolis, Minnesota 55487-0005
FAX: (612) 348-4663
~P-3
Page 2
If you have any questions about this notice, please call Jean Myers at 348-6666. for assistance.
Sincerely,
~~~~.
Sandra L. Vargas
County Administra or
cc: IT Operations, Jean Myers
attachment
•
1/1.1-11-1777 lYJ•JO ~ i~u~i .n. ~... vi ~... .. ..... ._. .. _.__ ~_
EXHIBIT A TO CONTRACT NO. A01384 ~ ~
. s
City of Richfield
2000
I. COUNTX will provide inquiry-only acces3 to the following information oyatcnn3-
Proneriv Information System: Access to this system will permit viewing of current real estate tax
lnlOrnlatiOll, includung legal descriptions,. valuations, special assessments and oQ1er puUlic data
retained in the Property Information Systems.
Subject in I'rucess System: Access to this system will permit inquiry into the Municipal Court
System. Information to be obtained includes case-related information concerning offense,
disposition, participants, scheduling and other public data contained in the Subject in Process
System.
Document Recording.System: Access to this system will pernnit viewing of current information on
documents filed with the County Recorder (Abstract) and Registrar of Titles (Tarrens) retained in
the Document Recording System since January 3, 7.988.
Civil Automated Tracking System (CATS}: Access to this system wilt permit viewing of index and
case status information; including familyi and unlawful detainer matters appearing in the District
Court. The system will identify the tale-by-case type and will provide information on filing and
appearance activities, including whether or not the case is closed. There is also an attorney table
which. provides infornnation on all known attorneys on a case.
Sheriff Warrant System: Access to this system will permit inquiry into the Sheriff`s Warrant
System (Warrant System). This inquiry will be by name search and will provide warrant
rwlataci infnrmation, inchiding warrant numlwr, clatp, r~ffense and othez' public data
• contained in the Warrant Systern."
"In addition to the terms and conditions of Contract No. A013S4, of which thie $xhibit A
fortns a part, it is also specifically agreed that access to and use of the Warrant Systenn will
be governed by and subject to the following.
A. It is planned that mobile digital terminals will also be utilizir>,g the Warrant System, and
the reasonable possibility exists that a great number of such mobile digital terminal accesses
could result in t11r ovrrlua~liltg at-tl sluwing duwxl of ttte computerized criminal justtce
system of the County, which includes the Warrant System. In the event such overloading
should occur, the County, through the Hennepin County Sheriff (Sheriff), reserves the right
to suspend and/or allocate access m the Warrant System as follows:
1. If the Sheriff believes that due to said overloading there is the immediate need
to reduce access to the Warrant System, he may, upon oral notification to User, suspend
and/or apportion User's Warrant Systemaccess for a period not to exceed 144 hours from
the tirile of said notice, provided that the Sheriff shall immediately send to User a written,
communication verifying and reiterating the contents of such oral notice. The Sheriff may
utilize as many 144-hour suspension/allocation periods as he may deem the circumstances
reasonably require, provided that said oral and corresponding written notices aze given for
each such period.
2. In addition to the right of the Sheriff to immediately suspend and/or apportion
Warrant System access because of system overloading, as aforesaid, the Sheriff for said
Ul,1-11-1777 1U•.~7 rrwn n~.a...+ ~~ ~•~~•~,~~•-• ~• "-" "'-
overloading may also suspend and/or apportion Warrant System access for indefinite or
• specific time peziods, as he may deem appropriate; provided that any snrh guspPnsiRn nr
allocation period shall not commence earlier than five (5} days following the date of receipt
by User of written notice from the Sheriff, which notice shall specify the date of
commencement of any such suspension and/or allocntion, the details thereof, and, in the
case of a specific time period, the date of its termination; provided further that for
suspensions and/ or allocations of an indefinite period, the Sheriff may recommence User's
access to the Warrant 3ystetti by giving to Ueer written >:iotificatioit of tlir sa~xte.
3. The Sheriff shall monitor the circumstances surrounding the overload and/,or
the problems which caused the same and shall cancel any aforesaid suspension or allocation
period and recomrrtertce User's Warrant System access, giving User prompt notice of the
same, whenever in his judgment the circumstances permit and/or such problems have been
adequately resolved- !f the Sheriff determines that the circumstances do not permit
restoration of full access, the Sheriff may restore such access as he determines appropriate
until such time as he determines that restoration of full access is feasible, provided that
written notice of any such determination shall be promptly given to User.
4. The Sheriff may utilise any one or a combination of the aforesaid
suspension/allocation alternatives. for as many times as he deems necessary in order to
achieve the herein stated purpose.
5. The rights of the Sheriff hereunder respecting the alleviation of overloading are
in addition to and not in limitation of similar rights of the County provided for in said
Contract No. AO'1384. However, in addition to any said rights of the County, the CRSITtty, in
an effort to alleviate averloadirtg problems which i determines to be contributed to by
User's access, may terminate User's Warrant System access through a particular telephone
line and require User - if User still desires Warrant System access - to install and use a new
dedicated line, with User paying the entire costs of such arrangement.
6. User ;,hall have no claim whataocver against the County, the Sheriff or their
officers, employees, agents or contractors respecting any aspect of any decision regarding
whether or not to suspend, allocate or terminate, as aforesaid.
7. The term "oral notification", as herein used, shall mean the oral communication
of the pertinent information to-the Police Chief of the City of Richfield or any one of Itis
police captains or the on-duty shift supervisor. Said information may be given to any of the
aforenamed persons either in person or by telephone at the following telephone number:
881-2333. User may Change said telephone number by giving advance written notice of the
new telephone number to the 5heritt.
8. For purposes of the herein provisions, the term °Sheriff" shall mean the Sheriff
or hisdesignee.
B. In cooperation with the efforts of -the County to avoid intensifying problems associated
with the overcrowding of the Hennepin County Adult Detention Center (HCADC), User
hereby warrants and agrees that unless and until its Warrant System access is completely
terminated, as hereinabove provided in accordance with the termination or cancellation
provisions of the herein contract (No. A07.384},and not merely suspended as hereinabove
set forth, User shall continue its current practice of detaining and transporting to a suburban
court from said HCADC all misdemeanants who are arrested Rr rau~cl to hP arrested 1'y
~~.ti
Ul.1-11-1777 1'U.•..J7 rfCUl7. nl.a.~ ~~ u~r~.i a-ui. •.~ ~,. v.,r ~...- ....
Richfield Police -whether or not as a result of information obtained from said Warrant
System -and who are unable to secure release from Custody.
~g.lo
C. User agrees that all name matches or "hits" on warrant inquiries must be verified
telephonically by the Hennepin County Sheriff's Warrant Division before any enforcement
action or detention shall occur. Such verification shall include the ascertainment that the
warrants aze currently on file. and active within said Warrant Division, in particular whether
ur nut each warrant leas tteeu exec:utea yr ~cutc.rllttd. Usrr also agt'~s Qtat all cvnditiotts, i.e.,
nightcapped, etc., respecting each wazrant are appropriately observed."
D. User shall be solely responsible for selecting obtalnii~g, installing, maintatning, repairing
modifying and/or replacing any equipment used to access or attempt to access said Warrant
Files. Any such equipment shall herein after be referred to as "User Equipment". At User's
request, the County will furnish tv User information concerning equipment which the
County reasonably believes to be compatible with the County's computer system. I't wili be
the User'sxesponsibility to verify with the seller, manufacturer, distributor, etc. of the
equipment the accuracy of the information so furnished by the County and also to obtain
from any such entity any additional necessary information- The furnishing of such
information shalt in no manner be construed as an expression of the County's guarantee or
warranty of the. equipment's quality or performance or its compatibility with said computer
system. The County shall incur no liability whatsoever with respect to the furnishing or
content of said information or with respect to-the equipment's quality, performance or
incompatibility. Information so received from the County shall not preclude User from
acquiring other equipment which User believes to be compatible with the computer system,
l+rovictP~1 that the county chali in nn .mariner l+e liable with respect to any resulting
incompatibility or in any other respect whatsoever.
User Eully understands and agrees that the County may chance, modify and f or replace
said computer system, any components. thereof indudiutg, without limitation, any related
software or wiring or cabling, thus, perhaps necessitating replacement of, changes to,
and/or modification of User Equipment to access Said Computer system told that in tiny
such event the County will in no manner be liable for the costs in any respect associated
with User's equipment but that User shalt bear the full costs thereof.
E. Although User's access to public information under said Contract No. A01384 is
ordinarily restricted to County business hours, wazrant. system access will be available to
User 24 hours a day, 7 days a week, except for scheduled and non-scheduled downtime.
F. Contractor agrees to abide by the provisions of the Minnesota Government Data
Practices Act and all other applicable state and federal taws, rules and regulations relating to
data privacy or confidentiality, and as any of .the same may be aQnended. Contractor agrees
to defend and hold the County, its officers, agents and employees harmless from any claims,
liabilities, losses and damages in any manner resulting from:
1. Contractor's unlawful disclosure and/or use of such protected data, and/or
2. the County's authorization of User to access said Warrant System
II. Usage Charge
A File Inquiry fee of $.0180 per transaction will be charged monthly for each inquiry to the
system.
•
Vl.l 11 1JJJ 1V ~V . .~.+.. ..... ..+ .... ~. .. .. -- -- --- ---
•
III. Networlc Support Charec
X81
The USER will be charged $300.00 monthly ($25.00 each-$19.00 basic and $6.00 host) for 12
wv-•kslations crnutected to I Iennepin County's teltprocessing network. The USER will be charged
an additional $25.00 for each additional connection.
IV. Prame Relay
1. For purposes of the aforementioned contract{including this exhibitj, the term "telephone
line(sj" includes without limitation any and all lines, cabling, communication circuits,.
and Jor data circuits in connection with the frame relay circuit and related equipment
andJor software.
2. User understands and agrees that the County will not be responsible in an manner for
accessing and linking any portion of User's frame relay circuit with lines andJor
connections awned or used by the County.
3. User understands and agrees that User, Logic andJor other person -not the County - will
a. provide, mair-tain, diagnose and correct problems of, and support such frame relay
and its access link
b. be responsible for the installation and configuration of the IBM 3270 emulation
software;
c, be responsible for the configuration of members wide area network to support the
bridging protocols required for access to the County;
d.. diagnose and correct problems with the8270 emulation sofriv'are; provided that the
County when rcquc~ted by U:,cr will render such assistance as the County deems it
reasonably can; such assistance shall be rendered only from County premises
consistent with the terms and conditions of said contract No. A013$4; and
e. notify the County of ptanried outages that wilt affect User.
V. User Premises
City of Richfield Assessor
6700 Portland Avenue South
Richfield, MN 55423-2549
City of Richfield Police Department
67UU Portland Avenue South
Richfield, MN 554.23-2599
•
TOTRL P.05
4A
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 234
Agenda October 11, 1999
Issue Statement:
Consideration of a resolution of support for the City's submission of an application for a
Livable Communities Demonstration Program planning grant to the Metropolitan
Council.
Background:
City staff has prepared a Livable Communities application requesting a $112,000
planning grant from the Metropolitan Council to conduct a study to develop a
community-based transit system in Richfield. The study would focus on transit issues
and challenges within Richfield's two housing dense, east/west transportation corridors
(66th Street and 76th/77th Street) and how to create critical linkages to existing and
proposed housing, employment and commercial nodes within Richfield and nearby
regional centers.
The demonstration project to plan for acommunity-based transit system is more fully
described on the attached summary (Exhibit A) that was submitted as part of the
application package. A resolution supporting the submission of the application is
required for the application to be considered.
The grant funds would be used for outside consultants to collaborate with Community
Development and Public Works staff on the transit strategy. A transit planning
consultant takes a lead role; coordinating consultants that administer a transit needs
survey, identifying financial resources to pay for transit services, and providing design
services for transit shelter design and placement. Funding is anticipated to be awarded
in January 2000, and the project would proceed over the next 18 months to two years.
Recommended Motion:
Authorize a resolution to apply for a Livable Communities planning grant and support
the Community-Based Transit System demonstration project.
Basis of Recommendation:
1. The process of conducting a transit study of the east/west corridors within Richfield
will provide the database necessary to lead to the development of acommunity-
based, redevelopment-oriented transit system that will better serve the needs of
Richfield residents and employees.
2. The City does not have prompt, effective, efficient transit services that link housing,
employment and retailing within the primary east/west corridors. ~'
Alternative Recommendation:
1. Decide to delay consideration to another year.
r~
U
~A-~
2. Choose not to support participation.
Discussion/Decision Mode:
The application was submitted to the Metropolitan Council on October 1, 1999 to meet
the application deadline. However, the submittal is contingent on a favorable finding by
the City Council before October 15.
pe ully submitted,
~~
St . Devich
cting City Manager
SLD:ds
Attachment
~{~=~
RESOLUTION NO.
RESOLUTION AUTHORIZING APPLICATION FOR THE
LIVABLE COMMUNITIES DEMONSTRATION PROGRAM
WHEREAS, the City of Richfield is a participant in the Livable Communities Act's
Housing Incentives Program for 1999 as determined by the Metropolitan Council, and is
therefore eligible to make application for funds under the Livable Communities
Demonstration Account; and
WHEREAS, the City has identified a proposed project within the City that meets
the Demonstration Account's purpose(s) and criteria; and
WHEREAS, the City has the institutional, managerial and financial capability to
ensure adequate project administration; and
WHEREAS, the City certifies that it will comply with all applicable laws and
regulations as stated in the contract agreements; and
WHEREAS, the City Council of Richfield, Minnesota, agrees to act as legal
sponsor for the project contained in the Demonstration Account application submitted
on October 1, 1999.
NOW, THEREFORE, BE IT RESOLVED that the Acting City Manager is hereby
authorized to apply to the Metropolitan Council for this funding on behalf of the City of
Richfield, Minnesota and to execute such agreements as are necessary to implement-
the project on behalf of the applicant.
Adopted by the City Council of the City of Richfield, Minnesota this 11th day of
October, 1999.
Martin J. Kirsch, Mayor
ATTEST:
Thomas P. Ferber, City Clerk
•
Exhibit A
~A- 3
.J A Plan. for Community-Based Transit in Richfield
~~ October 1, 1999
Background
One of the challenges first-ring suburbs face today is creating transit connections within
and beyond their boundaries that are efficient, accessible and user-friendly and which
provide the necessary linkages to housing, jobs and services. Yet another challenge is
interrelating redevelopment sites with transit to encourage increased ridership and
provide safe transit options. Funding and implementing transit solutions can be
successful in densely developed office corridors. However, planning is required to
determine how this will occur in primarily residential corridors with less office/retail
density. Richfield is proposing to develop acommunity-based transit system that is
responsive to the needs of the community and region and which incorporates transit as
a critical element in redevelopment planning.
Richfield has two, housing dense, mixed use East/West corridors experiencing
significant change and "growth as the city seeks to revitalize through redevelopment..
These corridors are 66t Street and 76t" and 77t" Streets. Not only are they a crucial link
between east and west Richfield, which is bisected by Interstate 35W, but they also
contain Richfield's highest density housing and major redevelopment areas. The
current transit options within these corridors are underutilized and inadequately linked to
jobs, housing and services, both in Richfield itself and regionally. A brief description of
the two corridors is helpful in understanding the transit challenges and opportunities that
exist.
The 66t" Street corridor runs parallel to Crosstown 62 on the north side of the City. It is
the main thoroughfare through Richfield's downtown area and provides a connection to
Southdale regional shopping center on the west end and airport service nodes on the
east. Major bridge improvements are planned or underway at the intersections of 66tH
Street and Interstate 35W and 66t"Street and TH 77 (Cedar Ave.) to improve traffic
capacity and safety. A transit transfer station will be constructed at the 35W overpass,
providing an important element in the future transit system created along this corridor.
There are over 4,167 housing units (1,848 apartment units) located directly on or within
'/4 mile walking distance of 66t" Street. The housing represents a mix of single. family
and low to mid density multi-family units. Most of the housing is considered affordable.
Along with housing, there are a number of retail sites scattered within the corridor,
including the HUB retail center and the greater Richfield downtown. Many of the City's
parks and recreational facilities are located along this corridor, most notably Richfield
Lake, Wood Lake Nature Center and Veterans Memorial Park. Because the park is the
site of the community's indoor ice sheets, public swimming pool and Farmers' Market, it
is a popular destination. It is also the proposed site of a possible new community/multi-
purpose center.
~~ ,.
The City is focusing its efforts on three major redevelopment planning areas within the
66t" Street corridor. West to east they are: Penn Avenue Sixty-Sixth Street (PASSS),
Lakes at Lyndale (66t" Street &Lyndale Avenue) and the Cedar Avenue Mitigative
Area. Two projects are currently under construction within the Lakes at Lyndale area:
Gramercy Park, a 160-unit senior cooperative housing development and Woodlake
Centre, a mixed use development project, which will provide 78 senior-assisted living
units, 138 units of rental townhomes and apartment flats and 90,000 square feet of
additional retail and office space.
One mile to the south, 77t" Street has been rebuilt into a more efficient alternative
frontage route for traffic and businesses located along Highway 494. It is also the
primary non-freeway connection between Edina's Centennial Lakes development and
the Southdale regional mall and, within two years, to the Mall of America. This corridor
is a high density housing area with more than 1,485 apartment units and 98 single
family homes located directly on 76t"/77t" Street. Within'/4 mile, 1,342 single family and
1,087 multi-family- units exist. Most of the housing is also affordable housing.
Significant commercial and office redevelopment has occurred in recent years within the
77"Street corridor: Meridian Crossings office towers, recently completed., have more
than 1,400 onsite employees and the Shops at Lyndale has over 230,700 square feet of
retail space. A mixed use redevelopment project is planned for the Lyndale Gateway
area (77t" and Lyndale), incorporating 160 units of affordable senior rental apartments
with 40 additional condominium housing units, and retail and office opportunities. The
Interchange West site, encompassing 41 acres, is presently being evaluated fora scope..
of development. equivalent to or greater than that at Meridian Crossings and the Shops
at Lyndale. Redevelopment of the 52-block Cedar Avenue Mitigative area is underway
as soon as funding is in place from state and federal sources.
Of particular significance in planning transit services for both corridors are the potential
connections they offer to the proposed light-rail stations at the Mall of America, the
airport and Veteran's Administration Hospital and to the regional transit transfer stations
already under construction along Interstate 35W in Richfield and Bloomington.
The Challenge
Given the high density, residential nature of these two corridors and the substantial
redevelopment occurring, the City recognizes the need to provide an integrated transit
system to improve connectivity. Further transit-oriented development cannot be
pursued without a plan. Richfield's challenge is to develop a highly responsive
East/West transit system within the identified, primarily residential corridors. The task,
specifically, is to plan for a system and identify how it would be funded, recognizing that
the system primarily serves a high density residential corridor that needs improved
connections along the corridors and linkages to major employment, retailing, and
services within or just outside the City's boundaries. Richfield's transit plan must look
beyond the traditional business community for its support. Although businesses would
2
y~-~
be encouraged to participate in and to contribute. to the transit system, it is unlikely they
would be willing to subsidize a system created to primarily serve the needs of residents.
The Opportunity
Richfield is proposing to conduct a study, funded through the Metropolitan Council's
Livable Communities Demonstration Program, to develop acommunity-based transit
system. The study would identify the needs of a transit system, the funding sources
required to implement it and the key public infrastructure components that must be
added. Three key elements of the study would include a survey to determine
transportation destinations and needs; a service plan to respond to inter-community and
regional transit issues; and a financial plan to fund the system.
Once the type of transit service to best serve the East/West corridors is determined, the
community-based transit system would then be developed to meet the following goals:
• link regional centers to high density housing, redevelopment areas and established
retail/commercial/office nodes within Richfield;
• provide connections to proposed light-rail stations and regional transit transfer
stations;
• provide connections for other alternative forms of transportation, such as bicycling;
• upgrade housing-dense areas to be transit-friendly;
• require developers to incorporate appropriate transit'elements into their projects
through a transit management plan;
• provide sufficient information to compel the Metropolitan Transit to implement transit
solutions; and
• modify existing transit routes to better meet transit needs.
It is Richfield's hope that the concept and process of conducting a transit study of its two
East/West corridors will not only benefit the community by providing. information critical
to creating acommunity-based transit system, but serve as a model for other
communities to look comprehensively as they seek to improve or enhance their internal
and external transit options.
3
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 233
Agenda October 11, 1999
Issue Statement:
Acknowledgement of 1999 George Warren Fuller Award presentation by the American
Water Works Association (AWWA) to John Thom, Utilities Coordinator for the Richfield
Public Works Department.
Background:
George Warren Fuller Awards are presented annually on recommendation of the
sections to members of the American Water Works Association for their distinguished
service to the water supply field in commemoration of the sound engineering skill, the
brilliant diplomatic talent, and the constructive leadership which characterized the life of
George Warren Fuller. Each state selects one award recipient from its membership.
The Minnesota Chapter of the AWWA announced John Thom as the George Warren
Fuller award recipient at a recent meeting.
The formal ceremony or presentation of a certificate of award is made a part of the
AWWA Annual Conference and Exposition. Each awardee automatically becomes a
member of the George Warren Fuller Award Society. John Thom will formally receive
the award at the 2000 National AWWA Conference.
Recommended Motion:
Congratulate John Thom, Utilities Coordinator for the Richfield Public Works
Department, for being selected as the Minnesota recipient of the George Warren Fuller
Award as presented by the American Water Works Association.
Basis of Recommendation:
1. The George Warren Fuller Award is the most prestigious award presented by the
American Water Works Association.
2. Each state annually selects one award recipient.
Alternative Recommendation:
None.
Discussion/Decision Mode:
Public Works Director Michael Eastling will be present to provide information about the
American Water Works Association and the George Warren Fuller Award. John Thom,
Operations Coordinator for the Richfield Public Works Department, will be present to
receive acknowledgement of and congratulations for his receipt of the award, which will
be presented officially at the 2000 AWWA National Conference.
Res~6e,~tf~lly submitted,
.~-
. to . Devic
Acting City Manager
SLD:ds