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05-18-98 agenda
CITY OF RICHFIELD MONDAY, MAY 18, 1998 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7 P.M. CALL TO ORDER AGENDA APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF APRIL 20, 1998 AND (2) SPECIAL MEETING OF APRIL 15, 1998 (NO QUORUM) 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF REPORT ON STATUS OF INTERCHANGE WEST REDEVELOPMENT STUDY AREA HRA LETTER NO. 29 • 3. CONSIDERATION OF RESOLUTION REGARDING APPROVAL OF MODIFICATION TO RICHFIELD REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN; ESTABLISHMENT OF GRAMERCY TAX INCREMENT FINANCING DISTRICT; AND ADOPTION OF GRAMERCY TAX INCREMENT FINANCING PLAN HRA LETTER NO. 30 4. CONSIDERATION OF EXCLUSIVE RIGHTS AGREEMENT WITH RYAN COMPANIES US, INC. FOR PENN AVENUE AND 66TH STREET REDEVELOPMENT AND TAX INCREMENT FINANCING PROJECT AREA (PASSS) HRA LETTER NO. 31 5. EXECUTIVE DIRECTOR REPORT 6. CLAIMS AND PAYROLL ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702. HOUSING AND REDEVELOPMENT AUTHORITY • HRA Letter No. 31 Agenda May 18, 1998 Issue Statement: Consideration of an Exclusive Development Rights Agreement with Ryan Companies US, Inc. for Penn Avenue and 66th Street Redevelopment and Tax Increment Financing Project Area (PASSS). Background: Ryan Companies US, Inc., located in downtown Minneapolis, has on a cursory basis examined the PASSS area. They are of the opinion, that with current market conditions, it has redevelopment potential. They are inclined to move to the next step, which would be a full feasibility study. They are seeking an Exclusive Rights Agreement for the area for a one year period to undertake the study. The attached agreement is very similar to that approved by the HRA and City Council for CSM for the Interchange West area. Also attached is a site analysis study schedule which lists some 32 events set within the proposed 12 month period. A process for providing information to the neighborhood during the feasibility study period will be formulated and implemented as well. The key features of the agreement are listed below: • • The parties acknowledge that in order for redevelopment to occur, Ryan may at some point need financial assistance from the HRA. • This agreement does not constitute approval of such financial assistance nor does it obligate the HRA to provide that assistance. • The term of the agreement is for a period of one year. • During the one year term of the agreement, the HRA will not provide financial assistance to any third party in connection with any proposed redevelopment. • The agreement may be terminated by either party with 30 days written notice. • Ryan will provide the HRA with written reports at least quarterly regarding the study's progress. • The City will also be a party to the agreement. Mr. Kent Carlson, Vice President at Ryan Companies, will be attending the HRA meeting. Recommended Motion: Direct the Executive Director and Chairperson to execute the attached Exclusive Development Rights Agreement with Ryan Companies US, Inc. for the undertaking of a redevelopment feasibility study for the area indicated on Appendix A of the Agreement, known as the Penn Avenue and 66th Street Redevelopment Project area, and present the Agreement to the City Council with a request that it be approved. Basis of Recommendation: • 1. Exploring redevelopment of this area is appropriate as it was established as a redevelopment and tax increment area by the HRA and City Council in 1989. 2. Ryan has demonstrated ability to initiate and complete large scale redevelopment projects. 3. Ryan has requested that the City be a party to the agreement as well. Alternative Recommendation: 1. Defer action until a further date. 2. Deny the request. Discussion/Decision Mode: If the HRA approves the Agreement, it will be presented to the City Council May 26. Respectfully submitted, James . Prosser Executive Director • JDP:cak 0 AGREEMENT THIS AGREEMENT is made and entered into this day of 1998, by and between the City of Richfield, Minnesota, a Minnesota municipal corporation ("City") and the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota a Minnesota public body corporate and politic ("HRA") (City and HRA hereinafter collectively referred to as "First Parties") and Ryan Companies US, Inc., a Minnesota corporation (hereinafter "Ryan"). RECITALS First: Ryan is interested in pursuing the redevelopment of that certain area identified on Appendix A (hereinafter the "Redevelopment Area"); Second: Ryan is proposing redevelopment within the Redevelopment Area which may include office, restaurant, limited retail, office showroom and residential uses (hereinafter the "Redevelopment")' Third: The First Parties wish to cooperate with Ryan's efforts with Redevelopment and are willing to proceed as described in this Agreement; Fourth: The parties acknowledge that Ryan will expend substantial time and . effort, and incur substantial expense in pursuing the Redevelopment; Fifth: Ryan is willing to undertake the above described activities with the reasonable assurance from the First Parties that they will support and cooperate with Ryan in its Redevelopment efforts. Sixth: The First Parties and Ryan have executed this Agreement to document their understanding with respect to the proposed Redevelopment. AGREEMENT NOW THEREFORE, in consideration of the premises and mutual obligation of the parties contained herein, each of them does hereby represent, covenant and agree with the other as follows: 1. Statement of Intent. It is the intention of the parties that Ryan will proceed with the development activities necessary to permit Redevelopment in a manner, and on terms and conditions, which are mutually acceptable to Ryan and the First Parties. The parties acknowledge that in order for • Redevelopment to be constructed, Ryan may at some point need financial and/or site assembly assistance from the First Parties. This Agreement does not, however, constitute either approval of such financial or site assembly assistance, nor does it obligate the First Parties to provide such assistance. 0 2. Undertaking by Ryan. Ryan intends to undertake and pursue certain activities with respect to the Redevelopment generally as outlined in the attached site analysis study schedule. Ryan's activities will include the following: site planning feasibility, development of plans for the Redevelopment, application for necessary government approvals, and such other activities as would be customary and necessary to permit the Redevelopment. 3. First Parties' Undertaking and Agreement. The First Parties agree to cooperate with Ryan in Ryan's undertakings, and specifically agree that during the term of this Agreement the First Parties will not (i) provide or enter into an agreement for provision of financial assistance to any third party in connection with any proposed development within the Redevelopment Area, or (ii) except as may be necessary in connection with the provision of public improvements, condemn or agree to proceed with the condemnation of any property within the Redevelopment Area to assist or facilitate development within such area by any third party. • 4. Term. The term of this Agreement shall be for a period of one (1) year, provided that, either party may terminate this Agreement as to all or any portion of the Redevelopment Area upon thirty (30) days written notice to the other, in the event that: (a) the City determines, in good faith, that Ryan is not diligently pursuing the Redevelopment with respect to the portions terminated, or (b) Ryan determines, in good faith, that the Redevelopment is not feasible with respect to the portions terminated. First Parties may also terminate the Agreement for failure of Ryan to meet its obligations under paragraphs 5D or 5E. Ryan will provide the First Parties with written reports at least quarterly regarding the status of its activities hereunder. Any such notice shall be deemed delivered if either actually delivered, or if faxed and mailed to the parties at the following addressees: Ryan Companies US, Inc. Attn: Kent Carlson 700 International Centre 900 Second Avenue South Minneapolis, MN 55402-3387 Phone: (612) 336-1200 Fax: (612) 337-5552 2 City of Richfield 6700 Portland Avenue South Richfield, MN 55423 Attn: City Manager Phone: (612) 861-9760 Fax: (612) 8618974 Richfield Housing and Redevelopment Authority 6700 Portland Avenue South Richfield, MN 55423 Attn: Executive Director Phone: (612) 861-9760 Fax: (612) 8618974 5. Miscellaneous. A. This Agreement constitutes the entire agreement between the parties relative to the proposed Redevelopment. Unless specifically described herein, no obligation shall be inferred or construed. B. As expansion of the foregoing, Ryan understands that further and separate action, for which no obligation is created hereunder, will be required before the First Parties are obligated to take various actions with respect to the Redevelopment. Those actions may include, without limitation: a) establishment of Project Area and Tax Increment District; b) agreement to provide tax increment or other financial assistance to the Redevelopment; C) zoning and subdivision approvals; d) acquisition of land within the Redevelopment Area by either voluntary purchase or condemnation (or both); and e) construction of public improvements to serve the Redevelopment. C. Ryan further understands that many of the actions which the First Parties may be called upon to take require the reasonable discretion and in some instances the legislative judgment of the First Parties, such actions may be made only following established procedures; and First Parties may not, by agreement, agree in advance to any specific decision in such matters. 3 D. Ryan hereby indemnifies, holds harmless and agrees to defend, the First Parties, their officers agents and employees from any claim or cause of action of whatever nature occasioned by or arising out of this Agreement or the first Parties performance thereunder. 0 By: E. Ryan agrees that it will pay all reasonable costs and expenses incurred by the First Parties relating to the preparation of this Agreement and all actions taken by the First Parties in furtherance of their obligations hereunder. Such payment shall be made to First Parties not later than 30 days following each request for payment accompanied with detail necessary to support such request. IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and year first above written. CITY OF RICHFIELD By: Its: Its: RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY By: _ Its: By: _ Its: RYAN COMPANIES US, INC. By: 0 Its: [H:CdAdmin: H RALTR:Att-Ryan] 4 APPENDIX A: PASSS REDEVELOPMENT PROJECT AREA AND PASSS TAX INCREMENT FINANCING DISTRICT E9 e : ? e z LJL0 I < - c2l Iq e o ---- Q i ?T O r a i i m •3 n o ST. W . _ E3 i d > > I i i ? a z z L 3 ? J ? ? oBo 94 TM ST. W . e, , o _- Bo ,B 0 0 0 Do 16 TM ST. W. ? G. B I ? O I I I i I ee TN s T. W. D I : '? < I 1 > o > _ < Z z 3 < 67 TM ST. W. 0 u TM sT. W. 19 I A-1 AMEVE IN)IWNT PROJECT AREA 'BOUNDARY TAX WREMENT DKTRiCT BOUNDARY S • • N_ ti n m H I ILI a ' M 0 [ 1 w J V, 0 y ~ o } j ? Y r H a ao ao m m co ? m rn o, m m m m m > CL a 3 m Ln j a.. W y ? 00 M 0% a w % 00 % a 1f7 1?t CCf° fD ? ? h ? W cb a A h h ? ? ? ? ? 0? _ C pa a 8 8 ' pa o M (D D o M o M chi M o M 0 N 8 w oa o M m M . O ap t M 1 7 T N ? 01 O ? m 3 a E m ' E 2 rn v ? ? r r Q s m m $ $ 0 ffi E n ' _ e e m F N 4 a c c Q m j c m £ U c e G U. 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N N N N N N N N N N M M M --------------- --------------- ?"---'-?;:t;------- ¦---h::':3"---- o v? cn :ti} C co Cf) • O C N f --------------- -------------------------- cn m °D z N ----- - ---- - - '-------------------------------------------- ---------------------- - ---- Yr -------------------------------------- N :v:• c 0 •1:: i:C N m O A A N O --- - ---- - -------------------------------------------- -------------------- -- --------------------------------------------- - v O v A ---------------------------- '---...------------------------ '.......... --------------------------- ----------------------------------'----------------- N N N --------------- ------------------ ------------ ------------ N N D O w 3 .p = wl ---- 1 ------- ---------------------- -------- - --------------- la A A A A .7, 03 A N ---------------------------------'----------- ..------------- ---- " --'- ---'--------------------'--. --------------------------------.-_._-----.------------- N Uf U1 O HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 30 Agenda May 18, 1998 Issue Statement: Consideration of a resolution regarding approval of the Modification to the Richfield Redevelopment Project Area Redevelopment Plan (Redevelopment Plan); establishment of the Gramercy Tax Increment Financing District; and adoption of the Gramercy Tax Increment Financing Plan (Tax Increment Plan) related thereto. Background: The majority of the area south of 66th Street and west of Lyndale Avenue has been identified for redevelopment since 1975. In the late 1970's the HRA purchased property which subsequently provided a site for the Lake Shore Drive condominium. Since that time various proposals have been advanced for other portions of the area but none have moved beyond the conceptual stage. The Gramercy Park Cooperative provides an opportunity to not only develop another portion of the "southwest" quadrant but it can also provide the impetus for treating the balance of the area. Staff is continuing to explore possible concepts for the remaining area. Presented for consideration are plan documents which would help make it possible to achieve the long sought goal for this quadrant. The anticipated Phase I includes a 14 story, 218 unit limited equity cooperative for seniors and a new 8,000 sq. ft. VFW facility. Phase I would be built on the current VFW property and an adjacent parcel • owned by D. Hules, currently occupied by Labor Ready Temporary Services. Phase Il, which is still in the formative stage, is anticipated to occur on the remaining parcels in the district. A Phase II concept plan is likely to include: • approximately 44,000 sq. ft. of commercial space including a Lyndale Hardware store (existing or new); • approximately 62,000 sq. ft. of medical clinic and office; • a housing component, with a variety of unit types. Of the nine parcels in the new district, four are currently in the LHN Tax Increment District and will need to be decertified from LHN and newly certified in the Gramercy Tax Increment District along with the other new parcels. Although these four parcels will be removed from the LHN Tax Increment District, sufficient tax increment will continue to be generated in the LHN district in order to meet its financial obligations. (See attached maps.) Mr. Sid Inman of Ehlers & Associates Inc. will be present at the HRA meeting and discuss the "but for..." conditions and other elements of the attached plan documents. Gramercy Corporation has negotiated a purchase agreement with the VFW. They have made an offer to the owner of the adjacent parcel but have not yet reached an agreement. If an agreement cannot be reached, Gramercy is anticipating to request the HRA to acquire the property through quick-take condemnation, as this parcel is a critical component of Phase I. Gramercy Corporation has requested public assistance to help offset development costs, and to keep the per unit share cost at a reasonably affordable level. Approval of • the plan documents will make it possible for the HRA to consider a Contract for Private Development with Gramercy at the June meeting. The current assessor's market value, taxes payable 1998, of the two properties (VFW parcel and adjacent Hules parcel) is . $876,000. With the estimated market value for Phase I of the project at $22.6 million, the projected gross annual increment is $356,460. • One of the requirements of a redevelopment tax increment district created in 1990 or later is a local contribution payment, or match, to the project, in order to avoid state aid penalties. The match for the Gramercy Tax Increment District must be equal to 5% of the gross tax increment. Per the Department of Revenue, local contribution means "any financial assistance from a municipality to a TIF district to pay for project costs. It does not include expenditures for general government purposes or expenditures for improvements that the authority or municipality planned to incur absent the project." Potential local match contributions include, among other things, public improvements, land, and consultant expenditures. For the Gramercy project, the local contribution is estimated to be $17,822 annually. At this time for potential match "in kind" contributions appear to be limited. Any short fall will be covered by other funds available to the HRA. The above-referenced descriptive provides detail for the Gramercy project only. However, the proposed Redevelopment Plan and Tax Increment Plan provide detail for both Phase i, Gramercy, and Phase II, a mixed use concept. In its entirety, the project could produce up to $53.2 million at full build out. Currently, the assessor's market value, taxes payable 1998, is $2.9 million. Appendix C of the Tax Increment Plan provides additional, detailed cash flow information. In addition to this cash flow, it is recommended that the following sections of Plans be reviewed: Page Section Summa 1-1 Subsection J Development Activities in Project Area 2-1 Subsection 2-3 Statement of Objectives 2-1 Subsection 2-5 Property in the Redevelopment TIF District 2-2 Subsection 2-6 Classification of the Redevelopment TIF District 2-4 Subsection 2-10 Uses of Funds 2-5 Subsection 2-11 Sources of Revenue 2-12 Subsection 2-25 Municipal Approval and Public Purpose 2-28 Subsection 2-28 State Tax Increment Financing Aid Recommended Motion: 1. Adopt the attached resolution which: • approves a modification to the Richfield Redevelopment Project Area Redevelopment Plan; • establishes the Gramercy Tax Increment Financing District; • approves the Gramercy Tax Increment Financing Plan, all subject to a finding by the Planning Commission as to its conformance with the Comprehensive Plan; and • requests the City Council to hold a public hearing and approve the modified Redevelopment Plan and new Tax Increment Financing Plan. 2. Adopt a motion which directs staff to negotiate a Contract for Private Development with Gramercy, Corp. Basis of Recommendation: 1. Since the late 1970's, it has been the intention of the HRA to redevelop this area, with the purchase of three residential lots on Graham Avenue in 1977. 2. The Richfield Comprehensive Plan identifies this area for commercial use and high density housing. 3. The Redevelopment and Tax Increment Plans meet the requirements of state law and established procedures within Richfield. 4. The approval of the plan documents will make it possible to consider a Contract for Private Development with Gramercy Corp. at the June HRA meeting which would be the first step in the redevelopment of this area. Alternative Recommendation: 1. Do not approve the modification of the Richfield Redevelopment Project Area Redevelopment Plan; establishment of the Gramercy Tax Increment Financing District; or adoption of the Gramercy Tax Increment Financing Plan. 2. Delay approval of the modification of the Richfield Redevelopment Project Area Redevelopment Plan; establishment of the Gramercy Tax Increment Financing District; or adoption of the Gramercy Tax Increment Financing Plan. 3. Seek alternatives to the proposed project. Discussion/Decision Mode: HRA approval on May 18, 1998 would permit Planning Commission review on May 26, 1998, and the public hearing and City Council consideration on June 22, 1998. Gramercy is proposing to begin site clearance in November 1998 with project completion anticipated in the spring of 2000. • Respectf y submitted, James Prosser Execute Director JDP:cak .7 r PROPOSED GRAMERCY TIF DISTRICT -- - , . , _ • 0 Properties to be decertified B r 0 HRA RESOLUTION NO. RESOLUTION APPROVING THE MODIFIED REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING THE TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON; AND RECOMMENDING APPROVAL OF THE PLANS BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: Section. Recitals. 1.01. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) adopted a redevelopment plan (the "Redevelopment Plan") for the area of the City generally known as the Richfield Redevelopment Area on May 17, 1993. 1.02. The City Council of the City of Richfield (City) held a public hearing on the Redevelopment Plan for the Richfield Redevelopment Project Area and approved the . Plan on June 14, 1993. 1.03 A proposal to create a new redevelopment Tax Increment Financing District, to be heretofore known as the Gramercy Tax Increment Financing District, has necessitated modification of the Redevelopment Plan for the Richfield Redevelopment Project Area and the adoption of a Tax Increment Financing Plan (the "TIF Plan") for the Interchange Tax Increment Financing District. 1.04 Except for the modification stated herein, the HRA reaffirms its findings and conclusions as approved in the original Plan dated May 17, 1993. 1.05 The HRA has caused to be prepared modification to the Redevelopment Plan and the TIF Plan for the Gramercy Tax Increment Financing District, both of which are contained in a document entitled, "Tax Increment Financing Plan for the Establishment of the Gramercy Tax Increment Financing District, within the Richfield Redevelopment Project Area" dated May 18, 1998, and on file with the HRA. Section 2. HRA Approval. 2.01. The HRA finds that the objectives of the HRA in encouraging development and redevelopment within the Richfield Project Area will be advanced by adoption of the modified Redevelopment Plan and adoption of the TIF Plan for the Gramercy Tax Increment Financing District. 0 HRA Resolution No. 2.02. The modified Redevelopment Plan and the TIF Plan are hereby approved and adopted by the HRA, subject to review by the Richfield Planning Commission. Section 3. Further Proceeding. 3.01. The Executive Director of the HRA is hereby authorized and directed to transmit copies of the Modified Redevelopment Plan and the TIF Plan to the School Board of Independent School District No. 280, Intermediate School District No. 287, and the Board of Commissioners of Hennepin County for review and comment and to notify said public bodies of the public hearing to be held on the Plans by the City. 3.02. The HRA requests that the Richfield Planning Commission review the modified Redevelopment Plan and the TIF Plan and comment regarding the consistency of the Plans with the City's Comprehensive Plan. 3.03. The HRA requests the City to hold the public hearing on the modified Redevelopment Plan and the TIF Plan required by Minn. Stat. Section 469.028 and Minn. Stat. Section 469.175, Subd. 3, as soon hereafter as is practicable and recommends that the modified Redevelopment Plan and the TIF Plan be approved by the City. 3.04 The HRA also intends to request that the City from time to time consider various other actions necessary to the implementation of the Redevelopment Plan and the TIF Plan and pledges its cooperation with the City in achieving the objectives of the Plan. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of May, 1998. Thomas E. Harms, Chair ATTEST: 0 Michael Sandahl, Secretary N y O O a ILU it 4< uj 2 -CL 0 I Au fl 'LU -o? Hj tu 575 aaES FISgNV1S ONLZ 1912 4410' H161 '3AV bVG3J 0 H1BI H1Ll HIM HIS H1Vl H1El \ H1Ll? H t t ? ? I H101 .LOM3 OOVOIHO 7' Snewnloo MbVd ONVDWO 3AV ONVllaod _ His NOI dN E ONZ 7 SN3A31S Isl I M,V =00IN L? T30SM19 H1aOMiN3M Aanasllld 1NVSt/3ld OWdO 131aifOH ???• OI3IdlNe 3AV 3lvUNAI HJISON I \ tTNAaB XVd10J 1NOdn0 NOSa3W3 L- L iNOw3ad ? owdle C??Cr ? ice- f 1 10T06wnH ??-+L--J?^^JL ONIAW S3W XONM ?;i ' iL_: : Y ---r NVOOI \ I Ml080w C[ NOIM3N J a3nno - ??C? !? 3AV NN3d _ N33no i TT3ssna NK3RBH3 J ; L^` SVWOHI NOldn j 1N37NIA I Nan93VM 3AV S3Xa3X u t C-=?? l i ° x x ? ?' S m ffi C? O O O? O r N of r r ? r r r r r r 3AV ddURO H1Bi ? Z H19l H1o1 b ?l-_?J{L--JC?? ?C-?-7 ? HIPt HIU 77 C?L._JoC?C? Hill H101 www?a4 C?? ?JCr?_?C?CJC? 101113 OOVJIHJ _ Sn8Wmoo V Hard o y ICL H. E Q L' aaE x ONZ N X SN3A31S FN 7Cz:? --? E?12 C? I_J rL N IN 1N W N ? N r x x x c c ° ° 17305M8 '? C laOA N3M (6 Aan9S111d L LJ IWSV31d oNaae 1318WH _ D a??ade - 3AV3iVaNAI Howo 441I1I IwAMB ' I I "JIOJ Ir-?I' 1 1NOdn0 L/ NOSa313 1NOW3aj ? Daaale 10106WnH eNlAal o O savftr C) XONN wool 0 1 M/eaow M ?JJJ N-. a3All0 O 3AV NN3d r N N33n0 i 1l3SSna O it NVOROHS T L SdWOHl II :i NOldn i iN3JNIA O N!lfI85VM 3Avs3Xa3x C) O 0 r r ,- r A Draft as of May 14, 1998 Draft for HRA Approval TAX INCREMENT FINANCING PLAN for the establishment of THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT (a redevelopment district) within THE RICHFIELD REDEVELOPMENT PROJECT AREA RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD HENNEPIN COUNTY STATE OF MINNESOTA Public Hearing: June 22, 1998 Adopted: Prepared by: • EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville, Minnesota 55113-1105 Phone: (612) 697-8500 Fax: (612) 697-8555 E-mail: info@ehlers-inc.com Web Site: www.ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) SECTION I - MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA ........................................... 1-1 Foreword ...................... ..............................................1-1 Subsection B. Statement of Public Purpose ...................................... 1-1 Subsection F. Boundaries of the Richfield Redevelopment Project Area ............... 1-1 Suhsection G. Parcels in Acquistion ........................................... 1-1 uh??c?ion J. Development Activities in the Richfield Project Area .................. 1-1 SECTION H - TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT ................... . 2-1 Subsection 2-1. Foreword ................................................... . 2-1 Subsection 2-2. Statutory Authority ............................................ . 2-1 Subsection 2-3. Statement of Objectives ........................................ . 2-1 Subsection 2-4. Redevelopment Plan Overview ................................... . 2-1 Subsection 2-5. Property in the Gramercy Redevelopment TIF District ................ . 2-2 Subsection 2-6. Classification of the Gramercy RedevelopmentTIF District ............. . 2-2 Subsection 2-7. Original Tax Capacity and Tax Rate .............................. . 2-3 Subsection 2-8. Estimated Captured Net Tax Capacity Value/Increment ............... . 2-4 Subsection 2-9. Property To Be Acquired ....................................... . 2-4 Subsection 2-10. Uses of Funds ................................................ . 2-4 Subsection 2-11. Sources of Revenue/Bonded Indebtedness .......................... . 2-5 Subsection 2-12. Definition of Tax Increment Revenues ............................. . 2-6 Subsection 2-13. Duration of the Gramercy Redevelopment TIF District ................ . 2-6 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions ..................... . 2-6 Subsection 2-15. Modifications to the Gramercy Redevelopment TIF District ............ . 2-7 Subsection 2-16. Administrative Expenses ....................................... . 2-7 Subsection 2-17. Limitation of Increment ........................................ . 2-8 Subsection 2-18. Use of Tax Increment .......................................... . 2-9 Subsection 2-19. Notification of Prior Planned Improvements ........................ . 2-9 Subsection 2-20. Excess Tax Increments ......................................... 2-10 Subsection 2-21. Requirements for Agreements with the Developer .................... 2-10 Subsection 2-22. Assessment Agreements ........................................ 2-10 Subsection 2-23. Administration of the Gramercy Redevelopment TIF District ........... 2-11 Subsection 2-24. Financial Reporting Requirements ................................ 2-11 Subsection 2-25. Municipal Approval and Public Purpose ........................... 2-12 Subsection 2-26. Fiscal Disparities Election ...................................... 2-14 Subsection 2-27. Other Limitations on the Use of Tax Increment ...................... 2-15 Subsection 2-28. State Tax Increment Financing Aid ............................... 2-16 Subsection 2-29. County Road Costs ............................................ 2-16 Subsection 2-30. Economic Development and Job Creation .......................... 2-17 Subsection 2-31. Summary .................................................... 2-17 0 APPENDIX A - BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT A-1 APPENDIX B - LEGAL DESC'tIPTION OF PROPERTY TO BE INCLUDED IN THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT .... B-1 APPENDIX C - ESTIMATED CASH FLOW FOR THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT .......................................... C-1 APPENDIX D MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) ....... D-1 APPENDIX E - REDEVELOPMENT QUALIFICATIONS FOR THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT .................... E-1 • • SECTION I MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA Foreword The following text represents a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area. Generally, the substantive changes include modifying the Redevelopment Plan for the Richfield Redevelopment Project Area to establish the Gramercy Redevelopment Tax Increment Financing District. Yof further information, a review of the Redevelopment Plan for the Richfield Redevelopment Project Area, adopted June 14, 1993, is recommended. It is available in the Community Development Department at the City of Richfield. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Richfield Redevelopment Project Area. Subsection B. Statement of Public Purpose See also the State of Public purpose found in Section B of the Redevelopment Plan for the Richfield Redevelopment Project Area, dated June 14, 1993. Subsection F. Boundaries of the Richfield Redevelopment Project Area 10 The boundary for the Richfield Redevelopment Project Area is not being modified. See Appendix A of the Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District for a map of the Richfield Redevelopment Project Area. Subsection G. Parcels in Acquistion The HRA may acquire the parcels in the Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District. However, it is anticipated that the developers will be responsible for acquisition. Subsection J. Development Activities in the Richfield Project Area The Redevelopment Plan for the Richfield Redevelopment Project Area is hereby modified to include redevelopment and development activities to facilitate the construction of the following projects: a. A senior housing cooperative b. A VFW facility c. A housing component d. Commercial/retail space e. A medical facility • City of Richfield Modification to the Development Program for Development District No. 1 1-1 SECTION II TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY REDEVELOPMENT 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 the establishment of the Gramercy Redevelopment Tar Increment Financing District ("the Gramercy District"), a redevelopment tax increment financ irna district, located in the Richfield Redevelopment Project Area. Subsection 2-2. 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 the Gramercy District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. Subsection 2-3. Statement of Obiectives is The Gramercy District currently consists of 9 parcels of land and adjacent and internal rights-of-way. The Gramercy District is created to facilitate construction of a senior cooperative housing project, a new facility for the VFW club, medical offices and clinic, hardware store, retail store, and additional housing options in the City of Richfield. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area, as well as bring to fruition plans for redeveloping this area since the late 1970's and early 1980's. 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 the Gramercy District and the Richfield Redevelopment Project Area. Subsection 2-4. Redevelopment Plan Overview Property to be Acquired - Selected property located within the Gramercy District may be acquired by the City or HRA and is further described in this Plan. 2. Relocation - Complete relocation services are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developers 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 the Gramercy District or may lease land or facilities to a developer. 4. The City or HRA may perform or provide for some or all necessary acquisition, City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-1 construction, relocation, demolition, and required utilities and public streets work within 10 the Gramercy District. Subsection 2-5. Propertv in the Gramercy Redevelopment Tax Increment Financing District The Gramercy District 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 the Gramercy District. Parcel Numbers 28-028-24-41-0015 28-028-24-41-0016 28-028-24-41-0017 27-028-24-32-0009 27-028-24-32-0010 27-028-24-32-0006 27-028-24-32-0117 27-028-24-32-0115 27-028-24-32-0005 Address 6617 Lake Shore Dive 6638 Lake Shore Drive 6639 Lake Shore Drive 710 Lake Shore Drive 6624 Lyndale Avenue 6718 Lyndale Avenue 709 Graham Avenue 6616 Lyndale Avenue 6630 Lyndale Avenue Subsection 2-6. Classification of the Gramercy Redevelopment 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 the Gramercy District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: i (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the alithority finds 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 50 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 of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 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 of plumbing, electrical, or structural repairs or City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-2 other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain uccc ss to iue property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or other improvements until 15 percent of the area of the parcel contains improvements. In meetinb the statutory criteria described above, the City and HRA rely on the following facts and findings: ¦ The Gramercy District is a redevelopment district consisting of 9 parcels. ¦ An inventory of the parcels shows that at least 70 percent of the parcels in the Gramercy District are occupied as defined in the TIF Act. An inspection of the buildings located within the Gramercy District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix E) Subsection 2-7. 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 the Gramercy District is based on the market values placed on the property by the assessor in 1998 for taxes payable 1999. • Pursuant to M.S., Section 469.177, Suubds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 1999) the amount by which the original value has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to adjustments, negotiated or court-ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in connection with previously issued building permits. In any year in which the current Net Tax Capacity value of the Gramercy District declines below the ONTO, no value will be captured and no tax increment will be payable to the City or HRA. The original local tax rate for the Gramercy District will be the local tax rate for taxes payable 1998. The Original Tax Capacity and the Original Local Tax Rate for the Gramercy District appear in the table below. Original Tax Capacity Value $84,482 Percent Retained by City 100% Estimated Original Local Tax Rate 1.38585 • City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-3 9 Subsection 2-8. 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 the Gramercy District, within the Richfield Redevelopment Project Area, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The City and HRA request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 1999. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capacit upon Completion of Project (PIC) 1,045,848 Original Estimated Net Tax Capacity (ONTC) 84,482 Estimated Captured Tax Capacity (CTC) 961,366 Estimated Annual Tax Increment (CTC x Local Tax Rate) $1,332,309 Subsection 2-9. Property To Be Acquired The City or HRA may acquire any parcel within the Gramercy District including interior and adjacent street rights of way. 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: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. 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 2-10. Uses of Funds Currently under consideration for the Gramercy District is a proposal to facilitate construction of a senior cooperative housing project, VFW facility and mixed use commercial/housing component. The City and HRA have determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around the Gramercy District. To facilitate the establishment and development or redevelopment of the Gramercy District, 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 the Gramercy District is outlined in the following table. 0 City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-4 1-1 Uses of Funds Total Laud Acquisition, Site Improvements, Public Improvements and Public Utilities* $15,250,000 Interest 14,000,000 Administrative Costs (up to 10%) 3,250,000 TOTAL $32,500,000 *Final budget will be done prior to the public hearing. Fstimated costs associated with the Gramercy District are subject to change. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the Gramercy District will be spent on activities related to development or redevelopment outside of the Gramercy District but within the boundaries of the Richfield Redevelopment Project Area, (including administrative costs, which are considered to be spent outside of the Gramercy District) subject to the limitations as described in this Plan. Subsection 2-11. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, relocation, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City or HRA reserves the right to use other sources of revenue legally applicable to the Modification to the Redevelopment 16 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 will be financed by a pay-as-you-go note. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $31,000,000 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 will 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 or to reimburse the developer on a "pay-as-you-go" basis for eligible activities paid for by the developer. The estimated sources of funds for the Gramercy District are contained in the table below. Sources of Funds Total Tax Increment Local Contribution $30,875,000 1,625,000 TOTAL $32,500,00 • City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-5 Subsection 2-12. Definition of Tax Increment Revenues Pursuant to M.S., Section 409.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority v i t h taxi increments; rc l),t ments of loans or other advances made by the authority with tax increments; and 4, interest or other investment earnings on or from tax increments. Sub,,cciiiui 2-13. Duration of the Gramercy Redevelopment Tax Increment Financing District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the Gramercy District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of the Gramercy District 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 1999. Thus, it is estimated that the Gramercy District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2024, or when the Plan is satisfied. The City or HRA does reserve the right to decertify the Gramercy District prior to the legally required date. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes construction which would have occurred without the creation of the Gramercy District. 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 the Gramercy District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 1997/1998 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Project Completion to Entity Total Hennepin County 936,486,071 961,366 0.1027% I.S.D. No. 280 26,436,495 961,366 3.6365% City of Richfield 17,976,447 961,366 5.3479% IMPACT ON TAX RATES 1997/1998 Percent Potential Extension Rates of Total CTC Taxes Hennepin County 0.383860 27.70% 961,366 369,030 I.S.D. No. 280 0.643340 46.42% 961,366 618,485 City of Richfield 0.271250 19.57% 961,366 260,771 Other 0.087400 6.31% 961,366 84,023 City of Richfield Tax Increment Financing Plan for the Gramerc y Redevelopment Tax Increment Financing District 2-6 Total 1.385850 100.00% 1,332,309 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1997fPay 1998 rate. The total net capacity for the entities listed above are based on Pay 1998 figures. The Gramercy District will be certified under the actual 1997/1998 rates. Subsection 2-15. Modifications to the Gramercy Redevelopment Tax Increment Financing District In a, cOrdance with M.S., Section 469.175, Subd. 4, any: I . reduction or enlargement of the geographic area of the Richfield Redevelopment Project Area or the Gramercy District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City or HRA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City or HRA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of the Gramercy District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, paragraph (a), clauses (1) to (5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the Richfield Redevelopment Project Area or the Gramercy District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the Gramercy District equals or exceeds the net tax capacity of those parcel(s) in the Gramercy District's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the Gramercy District. The City or HRA must notify the County Auditor of any modification that reduces or enlarges the geographic area of the Gramercy District or the Richfield Redevelopment Project Area. Modifications to the Gramercy Redevelopment Tax Increment Financing District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 2-16. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the City or HRA, other than: 1. amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district; 2. relocation benefits paid to or services provided for persons residing or businesses located in the district; or 3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-7 to M.S., Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic deg, d(?pnient consultants. Tax increment maybe used to pay any authorized and documented administrative exp.;ases for the Gramercy District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Richfield Redevelopment Project Area, whichever is less. Pursuant to M. S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the Gramercy District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the City or HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. Subsection 2-17. Limitation of Increment Pursuant to M.S., Section 469.176, Subd. 1(a), no tax increment shall be paid to the City or HRA for the Gramercy District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the Gramercy District by the County Auditor unless within the three (3) year period: (a) bonds have been issued pursuant to M.S., Section 469.178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165, or (b) the City or HRA has acquired property within the Gramercy District, or (c) the City or HRA has constructed or caused to be constructed public improvements within the Gramercy District. The bonds must be issued, or the City or HRA must acquire property or construct or cause public improvements to be constructed by approximately July, 2000. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-8 authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the comity auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original i(i i,7x capacity of the tax increment financing district. The county auditor must enforce the pn)vi,i,,,ns of this subdivision... For purposes of this subdivision, qualified improvements (4'a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or HRA or a property owner must improve parcels within the Gramercy District by approximately July, 2001. Subsection 2-18. Use of Tax Increment The City or HRA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the Gramercy District for the following purposes: 1. to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay public redevelopment costs of the Richfield Redevelopment Project Area pursuant to the M.S., Sections 469.001 to 469.047; 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to the City or HRA or for the benefit of the Richfield Redevelopment Project Area by the developer; 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and interest on tax increment bonds or bonds issued pursuant to the Plan or pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the Gramercy District will be paid by Hennepin County to the City of Richfield for the Tax Increment Fund of said the Gramercy District. The City or HRA will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City or HRA administration (up to 10 percent) and the costs of public improvement activities outside the Gramercy District. Subsection 2-19. 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 the Gramercy District enlargement with a listing of all properties within the Gramercy District 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. City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-9 . The County Auditor shall increase the original value of the Gramercy District by the value of improvements for which a building permit was issued. Pursuant to M.S., Section 469.177, Subd. 4, the City has reviewed the area to be included in the Gramercy District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the Plan by the City and HRA. Subsection 2-20. Excess Tax Increments Pursuant to M.S.. Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 475.61, Subd. 3, the City or HRA shall use the excess amount to do any of the fnl l o"vi ng: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the City or HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Gramercy District or the Richfield Redevelopment Project Area. Subsection 2-21. Requirements for Agreements with the Developer The City or HRA will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City or HRA to demonstrate the conformance of the development with city plans and ordinances. The City or HRA may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the Gramercy District as set forth in the Plan shall at any time be owned by the City or HRA as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178, to which tax increments from property acquired is pledged, without the City or HRA having, prior to acquisition in excess of 25 percent of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City or HRA should the development or redevelopment not be completed. Subsection 2-22. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City or HRA may enter into an agreement in recordable form with the developer of property within the Gramercy District which establishes a minimum market value of the land and completed improvements for the duration of the Gramercy District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-10 Subsection 2-23. Administration of the Gramercy Redevelopment Tax Increment Financing District Administration of the Gramercy District will be handled by the Community Development Director of the City of Richfield. Subsection 2-24. Financial Reporting Requirements A. Filing with State Auditor, County Auditor, County Board and School Board: Pursuant to M.S., Section 469.175. Subd. 5, the City or HRA must file an annual disclosure report for all tax increment financing districts, including the Gramercy District. The report shall be filed with the County Board, County Auditor, School Board, and the State Auditor on or before July 1 of each year. The report to be filed by the City or HRA shall include the following information: 1. the amount and source of revenue in the tax increment account; 2. the amount and purpose of expenditures from the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of the Gramercy District; 5. the captured net tax capacity retained by the City or HRA; 6. the captured net tax capacity shared with other taxing districts; 7. the tax increment received; and any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City showing: 1. the tax increment received and expended in that year, 2. the original net tax capacity, 3. captured net tax capacity, 4. amount of outstanding bonded indebtedness, 5. the amount of the Gramercy District's increment paid to other governmental bodies, 6. the amount paid for administrative costs, 7. the sum of increments paid, directly or indirectly, for activities and improvements located outside of the Gramercy District, and 8. any additional information the City or HRA deems necessary. C. State Auditor filing for the Gramercy District: Pursuant to M.S., Section 469.175, Subd. 6, the City or HRA must annually submit to the State Auditor, on or before July 1, a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in the Gramercy District; 2. permit comparison and reconciliation with the City and HRA's accounts and financial reports; 3. permit auditing of the funds expended on behalf of the Gramercy District or that is funded in part or whole through the use of a development account funded with tax increments from other tax increment districts or with public money; and 4. be consistent with generally accepted accounting principles. The financial report must also include the following: City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-11 I . the original net tax capacity of the Gramercy District; 2. the captured net tax capacity of the Gramercy District, including the amount of any captured net tax capacity shared with other taxing districts; 3. the amount budgeted under the Plan, and the actual amount expended for, at least, the following categories (for the reporting period and for the duration of the Gramercy District): a. acquisition of land and buildings through condemnation or purchase; b. site improvements or preparation costs; C. installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d. administrative costs, including the allocated cost of the city; e. public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and 4. the total costs of the property to the City or HRA and the price paid the developers (for properties sold to developers); 5. the amount of increments rebated or paid to developers or property owners for privately financed improvements or other qualifying costs, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in the Gramercy District. D. State Auditor filing for all Tax Increment Financing Districts: Pursuant to M.S., Section 469.175, Subd. 6a, the City or HRA must also annually report to the State Auditor before or on July 1 of each year the following amounts for the entire City: 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar year; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on: (i) general obligation tax increment financing bonds and (ii) other tax increment financing bonds; and for each tax increment financing district within the City: 1. the type of tax increment financing district; 2. the date on which the district is required to be decertified; 3. the amount of any payments and the value of in-kind benefits, such as physical improvements and the uses of building space, that are financed with revenues derived from increments and are provided to another governmental unit (other than the municipality) during the preceding calendar year; 4. the tax increment revenues for taxes payable in the current calendar year; 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of each district; and 6. any additional information that the State Auditor may require. Subsection 2-25. Municipal Approval and Public Purpose The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the Gramercy District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Gramercy District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-12 The Gramercy District consists of 9 parcels, with plans to redevelop the area for residential and commercial/retail purposes. At least 70 percent of the area in the parcels in the Gramercy District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in the Gt-ain wi, v 1 district, not including outbuildings, are structurally substandard to a degree requiring substantial i,:nuvation or clearance (See Appendix E). 2. Findin^ ihoi ilw proposed development, in the opinion of the City Council, would not reasonably be expect, '?l in , ( iu- solely through private investment within the reasonably foreseeable fiiture and that the inci c(o(? l market value of the site that could reasonably be expected to occur without the use of ta.x iii, i, )tent financing would be less than the increase in the market value estimated to result from i1i, Proposed development after subtracting the present value of the projected tax increments for the )wl.?imum duration of the Gramercy District permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a senior housing cooperative that meets the City's objectives for redevelopment. The HRA currently owns certain the property of the VFW facility and the mixed-use commercia/retail and housing component, but the cost of site and public improvements and acquisition of the other properties in the district by the developer makes the proposed development infeasible without City assistance. The developer of the senior housing cooperative and VFW facility has submitted a pro forma on file in City Hall demonstrating the need for the assistance, and the developer has certified to the City that financing for the project would not be available but for the tax increment assistance to be provided under this plan. The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of site and public improvements and acquiring the property adds to the total redevelopment cost. Since the late 1970's/early 1980's the HRA has intended to redevelop the subject site area. The majority of the area south of 66th Street and west of Lyndale Avenue has been identified for redevelopment since 1975. In the late 1970's the HRA purchased property which subsequently provided a site for the lake Shore Condominiums Since that time various proposals have been advanced for other portions of the area but none have moved beyond the conceptual stage. Historically, site development costs in this area have made development infeasible without tax increment assistance. Therefore, the City reasonably determines that no other development of any kind is anticipated on this site without substantially similar assistance being provided to the housing development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of the Gramercy Redevelopment Tax Increment Financing District 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 the Gramercy District, the total increased market value would be up to $50,335,744. The present value of the tax increment from the Gramercy District is estimated to be $12,110,673. It is the Council's finding that no development with a market value of greater than $38,225,071 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 public and site improvements in the general area of the Gramercy District (see the but/for analysis in the cashflow in Appendix Q. City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-13 3. Finding that the Tax Increment Financing Plan for the Gramercy District conforms to the general plan for the redevelopment of the municipality as a whole. The Plan will be approved by the Planning Commission on May 26, 1998. It is anticipated that the Planning Commission will find that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for the Gramercy District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or plc clopnent of the Richfield Redevelopment Project Area by private enterprise. i he project to be assisted by the Gramercy District will result in the renovation of substandard properties, increased tax base of the State, the addition of a high quality development to the City and provide certain housing components to the City which do not exist. Additional findings are set forth in the Authorizing Resolution of the City. Subsection 2-26. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City or HRA may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause a, (without the Gramercy District) are followed, the following method of computation shall apply: (1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. If the calculations pursuant to M.S., Section 469.177, Suubd. 3, clause b, (within the Gramercy District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-14 the current tax capacity, the difference between the original net tax capacity and the current 40 net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing distri( is i c ilae retained captured net tax capacity of the authority. (2) The c, ,m i l r auditor shall exclude the retained captured net tax capacity of the authority from the nei r«x capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax ,,<,nerated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City or HRA shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the City or HRA elected. The City of Richfield will choose to calculate fiscal disparities by clause a. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Is Subsection 2-27. Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the Richfield Redevelopment Project Area pursuant to the M.S., Sections 469.001 to 469.047; These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the acquisition, construction, renovation, operation or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. 2. Pooling Limitations. At least 75 percent of tax increments from the Gramercy District must be expended on activities in the Gramercy District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the Gramercy District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the Gramercy District. 0 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the Gramercy District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-15 the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the Gramercy District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. S. Redevelopmew District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of rede% elopr ent and renewal and renovation districts under M.S., Section 469.174 Subd. 4j. These 0,1s ink Jude, but are not limited to, acquiring properties containing structurally substandard buildings or i n[>rovements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City or HRA, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2-28. State Tax Increment Financing Aid Pursuant to M.S., Section 273.1399, for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA) 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-HACA penalty. The Gramercy District is exempt from the LGA-HACA reduction if the City or HRA elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year, the City or HRA must make a qualifying local contribution to the project of a certain percentage. The local contribution for a redevelopment district is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the City or HRA must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the City or HRA, such as the general fund, a property tax levy, or a federal or state grant-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes. The City elects to make the annual local contribution to the project to exempt itself from the LGA- HACA penalty. The City or HRA will pay for costs of the project described in this Plan, in an amount equal to 5 percent of annual tax increment for the Gramercy District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or HRA or other unit of government with unrestricted funds. is Subsection 2-29. County Road Costs City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-16 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 c ouncy, substantially increase the use of county roads requiring construction of road improvements or other r,,,id costs and if the road improvements are not scheduled within the next five years under a capital improv,,mcut 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 2-30. Economic Development and Job Creation To the extent applicable, the City or HRA agrees to comply with M.S., Section 1161991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in jobs and meet wage level goals in Minnesota within two years of receiving assistance (See Appendix D). Subsection 2-31. Summary The City of Richfield is establishing the Gramercy District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for the Gramercy District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55402-4100, telephone (612) 697-8500. • r? ?J City of Richfield Tax Increment Financing Plan for the Gramercy Redevelopment Tax Increment Financing District 2-17 0 APPENDIX A BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT • 0 APPENDIX A-1 N t/1 N .w N N N ° O 2 2 x Z Z o rn rn aaeL HSpM/1S ONZL ??? 18LZ ??? _ _ _ (Q +LLOL ??? y m w `w N y y ??? -? "m L ??? a MOT3d9NOl 3AV dKMD 0O0 3AV aVO30 H191 ???? H19t ` \ Z HILL ?? ????r?r =O H 9L ?} H19L ??.???L????E]?? ' NOlONIW00'iB A1019MdD1N78 HiSI ???? ?O???LJ? H1SL HLVL ?????? u? H1VL. ????????????????? H19L H191? ??????????????? .. HILL ??^ ??? ^??^? ? H1Ll i I u! _.J H13L HiD, ??1?_1'' ?????? H10L R? Loma smnnioo I_?????????'-???? F snewmoo U ???????U? Xatle '? +L-? NWd (n ??????r???L? - ONmroo Q 3AV ONJNl?1 Od ??????L??? 3AV aNd7laod HIP H1S Ni9? ????11?,??II???II?? I?^1 r? HIS O Q U ' -N01NnO ??????IJ?? I ` NO1NIl a aa9 ?? ?????????? oa9 m C > iIL?-?iL IL??II ONL G) 0 SN3AMS ?? ?? ''?'' ?{I???????? {I SN3A31S LSt ?I ' ' '?L_J:_J???? ` 151 'fl '3AV 13770OIN ? ???????r i?? .a ` T3wrele 11 O ?i??????uJ? T305MB D a0M1N3M H1aOM1Na.M ?Jll-J L_-= ? ? V lC lu AWIMI-Nd !El 111.111d ? L? J ???D? ??? W \I -? aNaa9 Owd 131aaVH ??? ?L.---???0?O? 131awH ?aC7? ?L?O ?? Ot3L3 8 3AV ONAI ?? D an3 I??? WWO I 3AV3TtlONAI HOIaOIV f? ?`?????? tow %Vd1A0.7 J I I'??•y7?'t?,?I ? ? i ?L^?;I '! I I xvilOJ 1NOdn0 1++odna ]uu NOSa3W3 \\?? I'`_----L?L?}\ y\-I?\???? NOSa3W3 1NOY13ad \ \J??1 ?--Y \ `???Vl?l 1NOW3aj / owalO ?? ?G??, --??I I? ?/ ZIaamo CD lmoewnH ??^?I???????;;? ??-J? ?? toloewnH LL OMAN ONlnal O s3WVr ~?'?-?!u?J--1??????? .? / s3hw C) XOHN XONN O Nvoaow ?J! J???I?fI??? ?L-- rrdOaow M wool woo, NO1M3N ,~ ?C??????1-??? ?? N01M3N ??j ??i?I?'????? ?!? ?? O a3An0 a3Arto '? 73Atl Nt8d CD N33110 N33R0 O T3ssna I-msna NM71a3HS 1^ u I I ?? II NtlOla3HS O SM'IOHl S?OHJL NOldn I`? \`--"-?`?IJ?? ?? 'L_l? N01dn 1N30NIA I :?i -'?J i' 1fLi.7NIA 7 ?! Q IJ rte- NanesvM N8nesvm 3AV Sax- ] 3AV S3Xa3X x x x x x = x c r° ° x x x x x 0 APPENDIX B LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT Parcel Numbers Address 28-028-24-41-0015 6617 Lake Shore Dive 28-028-24-41-0016 6638 Lake Shore Drive 28-028-24-41-0017 6639 Lake Shore Drive 27-028-24-32-0009 710 Lake Shore Drive 27-028-24-32-0010 6624 Lyndale Avenue 27-028-24-32-0006 6718 Lyndale Avenue 27-028-24-32-0117 709 Graham Avenue 27-028-24-32-0115 6616 Lyndale Avenue 27-028-24-32-0005 6630 Lyndale Avenue • • APPENDIX B-1 0 APPENDIX C ESTIMATED CASH FLOW FOR THE GRAMERCY REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT E • APPENDIX C-1 05/14/98 City of Richfield - Lyndale Ave Project - VFW Site Page 1 • • BASIC ASSUMPTIONS District: New Redevelopment District Inflation Rate 0.0000% Pay As You Go Rate 7.50% Fiscal Disp. Contribution Ratio 18.6928% Tax Capacity (Extension) Rate 1.350000 EST BASE MARKET PROPERTY PID NAME VALUE TYPE C, 28-028-24-42.0015 Lynch 84,000 1%-1.85% 28-028-24-42.0016 Lake Shore Condo 0 1%-1.85% 28-028-24-42-0017 Davies 106,000 1%-1.85% 27-028-24-32-0009 VFW 800,000 1%-1.85% 27-028-24-32-0010 Hules 76,000 1%-1.85% 27-028-24-32-0006 Triple S 319,000 4.00% 27-028-24-32-0117 Richfield HRA 0 4.00% 27-028-24-32-0005 Trestman 302,000 4.00% 27-028-24-32-0115 Lyndale Hardware 1,208,000 4.00% Total 2,895,000 Note 1 - Tax Exempt Property May Be Assigned A Value At Time Of Certification. Note 2 - Assumes The Current Commercial Class Rate Changed TO Residential. BASE USE TAX 0 Note 1 Single Fam. 1,324 Note 2 Single Fam. 14,163 Note 2 Single Fam. 769 Single Fam. 10,810 Comm. 0 Note 1 Comm. 10,130 Comm. 46.370 Comm. Phase Development Type Sq. Ft./ Units PROJECT VALUE INFORMATION Taxes Tax Capacity Per Total Minus S q. Ft./Unit Taxes Fis. Dis. Total Tax Capacity Tax Rate Market Value ayable 1 Housing 218 51,607.31 350,393 259,550 259,550 1%- 1.7% 22,000,000 2001 1 VFW 8,000 $2.67 21,322 15,794 19,425 3.50% 600,000 2001 1 Commerical 34,000 $4.00 136,000 81,909 100,741 3.50% 2,878,307 2001 1 Commerical 40,000 $5.00 200,000 120,455 148,148 3.50% 4,232,804 2001 1 Commerical 22,000 $5.00 110,000 66,250 81,481 3.50% 2,328,042 2001 1 Housing 25,000 $4.00 100,000 60,228 74,074 3.50% 2,116,402 2001 1 Housing 90 $1,446.43 130,179 96,429 96,429 1.90% 5,075,188 2001 1 Housing 14 S8,336.25 116,708 86,450 86,450 1.90% 4,550,000 2001 1 Commerical 42 55,771.25 242,393 179,550 179,550 1.90% 9,450,000 2001 TOTALS 1,406,993 966,615 1,045,848 53,230,744 Assumes a averaqe Value Or nomes to ue a wv,a ?. RI100- Prepared by Publicorp Inc. - Please review all assumptions. Plan-1.wk4 05114/98 City of Richfield - Lyndale Ave Project - VFW Site Page 2 u • BUT / FOR ANALYSIS Current Market Value - Est. 2,895,000 New Market Value - Est. 53,230,744 Difference 50,335,744 Present Value of Tax Increment 12,110,673 Difference 38,225,071 Value Likely to Occur Without TIF is Less Than: 38,225,071 R1100- Prepared by Publicorp Inc. - Please review all assumptions. Plan-1.wk4 TAX INCREMENT CASH FLOW Beginning Period Annual Project Captured Semi-Annual Admin State Aud. Semi-Annual Local Ending Period Base Tax Tax Tax Gross Tax Payment Payment Net Tax Match Yrs. Mth. Yr. Capacity Capacity Capacity Increment 10.00% 0.25% Increment 5.00% Yrs. Mth. Yr. 0.0 08-01 1998 84,482 84,482 0 0 0 0 0 0 0.0 02-01 1999 0.0 02-01 1999 84,482 84,482 0 0 0 0 0 0 0.0 08-01 1999 0.0 08-01 1999 84,482 84,482 0 0 0 0 0 0 0.0 02-01 2000 0.0 02-01 2000 84,482 84,482 0 0 0 0 0 0 0.0 08-01 2000 0.0 08-01 2000 84,482 84,482 0 0 0 0 0 0 0.0 02-01 2001 0.0 02-01 2001 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 0.5 08-01 2001 0.5 08-01 2001 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 1.0 02-01 2002 1.0 02-01 2002 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 1.5 08-01 2002 1.5 08-01 2002 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 2.0 02-01 2003 2.0 02-01 2003 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 2.5 08-01 2003 2.5 08-01 2003 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 3.0 02-01 2004 3.0 02-01 2004 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 3.5 08-01 2004 3.5 08-01 2004 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 4.0 02.01 2005 4.0 02-01 2005 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 4.5 08-01 2005 4.5 08-01 2005 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 5.0 02-01 2006 5.0 02-01 2006 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 5.5 08-01 2006 5.5 08-01 2006 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 6.0 02-01 2007 6.0 02-01 2007 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 6.5 08-01 2007 6.5 08-01 2007 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 7.0 02-01 2008 7.0 02-01 2008 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 7.5 08-01 2008 7.5 08-01 2008 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 8.0 02-01 2009 8.0 02-01 2009 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 8.5 08-01 2009 8.5 08-01 2009 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 9.0 02-01 2010 9.0 02-01 2010 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 9.5 08-01 2010 9.5 08-01 2010 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 10.0 02-01 2011 10.0 02-01 2011 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 10.5 08-01 2011 10.5 08-01 2011 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 11.0 02-01 2012 11.0 02-01 2012 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 11.5 08-01 2012 11.5 08-01 2012 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 12.0 02-01 2013 12.0 02-01 2013 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 12.5 08-01 2013 12.5 08-01 2013 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 13.0 02-01 2014 13.0 02-01 2014 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 13.5 08-01 2014 13.5 08-01 2014 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 14.0 02-01 2015 14.0 02-01 2015 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 14.5 08-01 2015 14.5 08-01 2015 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 15.0 02-01 2016 I 15.0 02-01 2016 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 15.5 08-01 2016 15.5 08-01 2016 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 16.0 02-01 2017 16.0 02-01 2017 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 16.5 08-01 2017 16.5 08-01 2017 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 17.0 02-01 2018 17.0 02-01 2018 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 17.5 08-01 2018 17.5 08-01 2018 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 18.0 02-01 2019 18.0 02-01 2019 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 18.5 08-01 2019 18.5 08-01 2019 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 19.0 02-01 2020 19.0 02-01 2020 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 19.5 08-01 2020 19.5 08-01 2020 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 20.0 02-01 2021 20.0 02-01 2021 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 20.5 08-01 2021 20.5 08-01 2021 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 21.0 02-01 2022 21.0 02-01 2022 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 21.5 08-01 2022 21.5 08-01 2022 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 22.0 02-01 2023 22.0 02-01 2023 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 22.5 08-01 2023 22.5 08-01 2023 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 23.0 02-01 2024 23.0 02-01 2024 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 23.5 08-01 2024 23.5 08-01 2024 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 24.0 02-01 2025 24.0 02-01 2025 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 24.5 08-01 2025 24.5 08-01 2025 84,482 1,045,848 961,366 648,922 64,892 1,622 584,030 32,446 25.0 02-01 2026 TOTALS 32,446,103 3,244,610 81,115 29,201,493 1,622,305 'RESENT VALUE 12,110,673 1,211,067 30,277 10,899,606 0 APPENDIX D MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) • APPENDIX D-1 N E S O T9 Trade & Economic Development February 27, 1998 To all Minnesota state and local government agencies: As you know, state and local governments are increasingly responding to the need to be more accountable with taxpayer dollars. This is especially true in the areas of economic development and business assistance. The legislatively-created Corporate Subsidy Reform Commission reviewed many of Minnesota's business subsidies and concluded that the reporting mechanisms should be improved to enhance accountability. The Department of Trade and Economic Development (DIED) created the Minnesota Business Assistance Form in 1995 to assist state and local agencies in meeting the accountability measures contained in M.S. 1167.991. The form has been modified this year to respond to the Commission's recommendations. M.S. 1167.991 requires a business receiving state or local government assistance to create a net increase in jobs in Minnesota within two years of receiving assistance. The law also requires the business to meet wage level and job creation goals established by the funding agency. Until the wage and job goals are achieved, each government agency that works with these businesses is mandated to annually report the goals and any progress toward these goals to DTED. If the goals are not achieved, the business must repay the assistance to the governmental agency at the terms negotiated in the assistance agreement. "Business assistance" refers to any business grant or loan using state or local dollars in excess of $25,000 or any new business activity within a tax increment district. While not defined in statute, our interpretation is that this would include grants, loans, interest subsidies, tax increment financing (TIF) or any other public monies directly benefitting a business and given for economic development or job growth purposes. Please use the enclosed Minnesota Business Assistance Form for each business assistance agreement signed between July 1, 1995 and December 31, 1997. All financial assistance agreements signed during this period should be reported by April 15, 1998 regardless when the assistance was awarded, unless a form has been submitted indicating that the business has met the established wage and job creation goals. Moreover, each year you will receive anew form from DTED to be completed and returned. Each year's form should be submitted until all wage and job goals have been achieved. Please mail or fax your completed form(s) to DTED before April 15, 1998. The form does not need to be submitte if assistance has not been provided to a business. Sincerely,` Jay Nova Commissioner iOO Metro Square, 12 1 -Ih Place Fast, Saint Paul. Minnesota ii 11) 1 •' 146 1ISA 612-297- 1291 • 800-(ii.--{iii?{ • fax O1_-296-4 :.' • I fl,' ADD 8()()-()2-,- 1 -121) %%i?%?At ed.stit Iv.mn.us • • ?%21NESOp9 QQ4 -Trade &- Econornlc Development 1998 Minnesota Business Assistance Form* (Please return by April 15, 1998) Please type or print in dark ink. 1. Funding government agency name 2. Contact name 3. Agency street address 4. City 5. Zip code 6. Phone number (area code) 8. Type of government agency Regional -State County City 7. Fax number (area code) - _ - Other (Please indicate) 9. Name of business receiving assistance 10. Industry of recipient (SIC code) 11. Type of assistance (e.g. loan, TIF, grant, infrastructure, etc.) 12. Name of TIF district (if applicable) Date of business 13 14. Date assistance first 15. Date project (building/ 16. Dollar value of business . assistance agreement provided machinery/etc.) was assistance placed in service -L _. 11 1M' _...l..,s r...vnn r-r th-.nr. 20 At bo- 2t For assistance agreements signed between iuty ?, rr» anu L. c LLI?. 'J ., .771, a,-...t •... ^w - . °°? b-. 21 For h 7d For all aorerments signed during 1998 and future years, the information in boxes 21 through 24 will be required. 17. Job creation goals for business receiving assistance 18. Average hourly wage level goals for business receiving assistance 19. Actual jobs created since business received assistance 20. Actual average hourly wage paid to employees hired since business received assistance Goals of business receiving assistance: (Please indicate Actual performance since project placed in service: (Please number of employees at each wage level and indicate the indicate number of employees at each wage level and indicate corresponding benefit level.) the corresponding benefit level.) Job Creation Hourly Wage 22. Hourly Val 21 23. Job Creation Hourly Wage 24. Hourly Value . Level of Voluntary Level of Voluntary Full-time Part-time (excl. benefits) Benefits ($) Full-time Part-time (excl. benefits) Benefits ($) less than $7.00 less than $7.00 $7.00 to $7.99 $7.00 to $7.99 $8.00 to $9.99 $8.00 to $9.99 $10.00 to $11.99 $10.00 to $11.99 $12.00 and higher $12.00 and higher If necessary, please attach additional documents. If necessary, please attach additional documents. 25. Last date actual wage and job creation levels documented 26. Date this Minnesota Business Assistance Form completed 27. Have all wage and job goals been achieved? Yes - do not submit future forms for this project. ? No - lease submit this form in 1999. * This form replaces all previous forms. Please complete one form for each business assistance agreement your agency signed between July 1, 1995 and December 31, 1997 which provided $25,000 or more in public funds. A form should be submitted annually for each assistance agreement until a submitted form indicates that all wage and job creation goals have been achieved. Do not submit this form if your agency has not agreed to provide assistance to a business since July 1, 1995. (over) ?1IANESOp Trade & Economic Development Please send completed form annually by April 15 to: Minnesota Business Assistance Form - AEO Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 East 7th Place St. Paul, Minnesota 55101 or fax report to: (612) 215-3841 For information, call: (612) 297-2335 or 1-800-657-3858 0 Minnesota Statutes 116J.991: A business that receives state or local government assistance for economic development or job growth purposes must create a net increase in jobs in Minnesota within two years of receiving the assistance. The government agency providing the assistance must establish wage level and job creation goals to be met by the business receiving the assistance. A business that fails to meet the goals must repay the assistance to the government agency. Each government agency must report the wage and job goals and the results for each project in achieving those goals to the department of trade and economic development. The department shall compile and publish the results of the reports for the previous calendar year by June 1 of each year. The reports of the agencies to the department and the compilation report of the department shall be made available to the public. For the purposes of this section, "assistance" means a grant or loan in excess of $25,000, or tax increment financing. 0 0 APPENDIX E REDEVELOPMENT QUALIFICATIONS FOR THE GRAMERCY REDEVELOPMENT TAX T\ CREMENT FINANCING DISTRICT Each property, has been reviewed to determine property substandardness in accordance with M.S., Section 469.174, Sabel. 10. All findings are on file for review at the City of Richfield, Community Development Department r? • APPENDIX E-1 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 29 Agenda May 18, 1998 Issue Statement: Consider a report on the status of the Interchange West redevelopment study area. Background: In June 1997, the HRA and the City entered into a six moth exclusive rights agreement with CSM for the purpose of CSM undertaking a feasibility study regarding the redevelopment of the area known as the Interchange West. The area is bounded by Penn and Knox Avenues and by 76th and 78th Streets. In December 1997, CSM was given an additional six months to continue the study. CSM has prepared two draft redevelopment options. Option A involves redevelopment of the existing commercial areas and the removal of ten homes along 77th Street. Option B involves redevelopment of the entire area, including all the homes south of 76th Street. Copies of each are attached. A major question when evaluating the possible redevelopment of this area has been whether the entire residential area south of 76th Street should be included. Over the past several months, a process, designed to answer that question, was undertaken. That process has been driven largely by a liaison group from the neighborhood, with the assistance of Nancy Welsh of the Mediation Center. Ms. Welsh has been acting as the public process facilitator for this project since December 1997. Through a series of neighborhood informational meetings, homeowners have been: • Kept informed about the status of the study and CSM's activities. • Given detailed information about the levels of compensation they could expect from CSM should a development occur. • Presented with the opinions of two local real estate agents regarding the implications of living near a large commercial development. • Briefed on quality of life issues such as increased traffic and possible crime resulting from hotels and restaurants. (The crime issue was presented, at the request of a resident, by a Bloomington police officer who works the "strip" and is familiar with the types of activities which sometimes accompany such uses.) • Given the opportunity to ask questions of City staff, a relocation consultant and CSM representative. • Asked to participate in an initial survey, designed to measure their opinions about redevelopment, and a follow-up survey of similar design, which was recently completed. The initial survey showed 50 percent favored a redevelopment that would include both the commercial and the residential areas. Thirty-six percent favored a redevelopment that would impact a minimal number of homes and separate the commercial area with a buffer. Fourteen percent were either undecided or said do nothing at all. A follow-up survey, following another informational meeting, showed that 70 percent now favor a redevelopment that would include both the commercial and residential areas, and 30 percent favored a redevelopment that would impact a minimal number of homes. Ten households did not return the survey. Of those ten, three had not returned the initial survey either. Three of these homes would be impacted under either redevelopment option, and two are absentee owners. Refer to the attached memo dated May 7 from Nancy Welsh for more information on the survey results. As has been pointed out to the area residents, the results of this survey will be one of the factors considered by the HRA and the City Council when evaluating redevelopment proposals. The survey results are not the only factor but they are one of the more critical ones. Recommended Motion: Listen to a presentation from members of the liaison group and Nancy Welsh, and direct the developer to present a status report and plan for redevelopment of the entire area to the HRA on June 15. Basis of Recommendation: 1. A detailed process, designed to measure opinion about redevelopment, was established and undertaken by the home owners over the past few months. 2. The result of that process is a survey which indicates that 70 percent of the respondents favor redevelopment of both the commercial and residential areas. 3. The exclusive rights agreement between CSM, the HRA, and the City expires in June. 4. Redevelopment of the entire area is consistent with the City's Comprehensive Plan. Alternative Recommendation: • Receive a presentation from members of the liaison group and Nancy Welsh. Discussion/Decision Mode: Members of the liaison group, along with Nancy Welsh, will be at the May 18 HRA meeting to make a brief presentation about the process, the survey, and the survey results. It is the desire of the liaison group that the HRA provide the developer with as much direction as possible based on the information available at this time. A representative of CSM will also be at the May 18 HRA meeting to answer questions. Because negotiations are still in process with the automobile dealerships, the status report will not be available until June. If warranted, the HRA may be requested at the June HRA meeting to authorize staff to negotiate a developer's agreement with CSM. Respectf y submitted, James arosser Executiv Director JDP:cak 0 a 4k O F= a O NVJOI NVONOW NOIAUN 4 z .Z O LL H.Lnos D V1 z Y Q C7 3nN3AV XONN F-A L ;F O I- _ z a ? pQ R c? 0 m U LL LL O O D m W U LL LL O i Z W la I3e2 W IZW= 4422 icoLold cc jW ZW= at) #i i 3 x 1 Hinos 3nN3AV m O I -- CL O NVJOI NVJHOW NO1M3N • x O:f w, 10 t?im Li I u m J W • f3 1 Q A 5is8)ptvo()q- I = t g yeA jWWO - IL two ?umZ p_ WSW x,,111 IL W ? ZDV W? Aim Y" I i Illllllil` HJAOS 3nN3AV XONH n n_ _ 31 h 0 J O W F S H _ ©© IQ W J I m V LL LL O O O O O D J W V Q O Q ZI-a? S Z® HJJMS 3nN3AV NN3d N T E R 0 MEMO O F F I C E L _j To: Homeowners Living South of 76th Street From: Nancy A. Welsh Subject: Results of Follow-Up Questionnaire in Interchange West Area Date: May 7, 1998 Thanks so much to all of you who completed the follow-up questionnaire in the Interchange West area. In this memorandum, I will summarize the results and discuss next steps. questionnaires. Three of these homeowners live in homes that would be removed under Option A. Two are homeowners who do not occupy these homes. Results. I received a total of 57 questionnaires. Ten homeowners did not return their Members of the Liaison Group met with me to count the questionnaires. The results were: PREFERRED OPTION NUMBER OF HOMEOWNERS Prefer Option A--Redevelopment of existing commercial area, with a 17 limited number of homes removed along 77th Street. Prefer Option B--Redevelopment of commercial and residential areas, 40 with all homes south of 76th Street removed. No Response 10 Based on the preferences of those who responded to the survey, it now appears that 70% of the homeowners who live south of 76th Street in the Interchange West area prefer Option B-- redevelopment of the commercial and residential areas. At the informational meeting on April 16, some of you asked that I separate out the responses received from homeowners whose homes would be removed under Option A. Two of the 17 homeowners who preferred Option A fit in this category. Five of the 40 homeowners who preferred Option B fit in this category. Importantly, whether you include or exclude the responses of these homeowners, 70% of those who responded to the survey preferred Option B. Next Steps. The Richfield HRA will meet on May 18 at 7:00 p.m. in the Council Chambers at City Hall. Two members of the Liaison Group and I will present the results of this questionnaire and the earlier questionnaire and information about the process which has been used. Murray Kornberg from CSM also will be present to answer any questions of the Richfield HRA. There will be only limited opportunity for comments at this meeting, but you should feel free to attend.