01-20-98 agendaCITY OF RICHFIELD
TUESDAY, JANUARY 20, 1998
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF DECEMBER 15, 1997
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. ELECTION OF HOUSING AND REDEVELOPMENT AUTHORITY OFFICERS
FOR 1998
HRA LETTER NO. 1
3. DESIGNATION OF HOUSING AND REDEVELOPMENT AUTHORITY ACTING
EXECUTIVE DIRECTOR FOR 1998
• HRA LETTER NO. 2
4. DESIGNATION OF HOUSING AND REDEVELOPMENT AUTHORITY OFFICIAL
NEWSPAPER FOR 1998
HRA LETTER NO. 3
5. CONSIDERATION OF RESOLUTIONS DESIGNATING OFFICIAL
DEPOSITORIES FOR HOUSING AND REDEVELOPMENT AUTHORITY OF
RICHFIELD FOR 1998, INCLUDING APPROVAL OF COLLATERAL
HRA LETTER NO. 4
6. CONSIDERATION OF STATUS REPORT AND PRESENTATION OF NEW
DEVELOPMENT CONCEPT FOR 7600 BLOCK OF LYNDALE AVENUE
HRA LETTER NO. 5
7. CONSIDERATION OF CONTRACT WITH JULIANNE MANSHIP FOR FIFTH
YEAR OF COMMUNITY APARTMENT PROGRAM
0 HRA LETTER NO. 6
8. CONSIDERATION OF STATUS REPORT ON RICHFIELD FLORAL AND
NURSERY'S PROPOSED PURCHASE OF 817 EAST 66TH STREET
HRA LETTER NO. 7
9. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7520
COLFAX AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM
HRA LETTER NO. 8
10. CONSIDERATION OF RESOLUTIONS RELATED TO RICHFIELD
REDISCOVERED NEW CONSTRUCTION PROGRAM, CYCLE V
HRA LETTER NO. 9
11. CONSIDERATION OF APPLICATION TO MINNESOTA HOUSING FINANCE
AGENCY FOR 20 RENTAL ASSISTANCE FOR FAMILY STABILIZATION
VOUCHERS
HRA LETTER NO. 10
12. EXECUTIVE DIRECTOR REPORT
0 13. 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.
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. io
Agenda January 20, 1998
Issue Statement:
Consideration of making application to the Minnesota Housing Finance Agency (MHFA)
for 20 rental assistance for family stabilization vouchers (RAFS).
Background:
Community Need:
A focus of welfare reform has been providing opportunities for recipients to become
economically self sufficient. Barriers to self sufficiency are housing, daycare and
transportation costs. There are approximately 3,000 Minnesota Family Investment
Program (MFIP) clients currently living in the southwestern suburban Hennepin County
area. Approximately 161 MFIP clients are participating in a self sufficiency program
with Richfield Hennepin Technical College (HTC). It is anticipated this number will
increase to 500 by June 30, 1999. Of the 161 MFIP clients currently in the program,
approximately 30 clients live in Richfield. The majority of them are not receiving any
housing assistance. Some are on a waiting list for Section 8 but will have a three to five
year wait.
Rental Assistance for Family Stabilization (RAFS):
• RAFS is a 36-month transitional rental assistance program funded by the State of
Minnesota. Established in 1992, the RAFS program provides rental assistance of $250
per month to qualified families. (Those on MFIP must maintain a satisfactory rating in
the self sufficiency process).
Minnesota Family Investment Program (MFIP):
MFIP replaces the program formerly known as Aid to Families with Dependent Children
(AFDC). MFIP has many of the same components of the AFDC program, with a built in
self sufficiency component.
Richfield - Hennepin Technical College Employment and Training (HTC):
Established in 1978, HTC is located at 7145 Harriet Avenue and is a division of the
State College System. It offers job training and placement services to low-income
residents. In 1988 they began administration of PATHS/STRIDE, now known as MFIP.
Effect on Richfield Section 8 Department Staff/HRA:
The current staff of three could handle the administration of 20 RAFS vouchers without
diminishing the quality of service to 315 Section 8 clients and 300 applicants without
being a burden to staff.
Financial Benefits to the HRA:
• The HRA would receive $40 per unit in administrative fees for each family that
participates in RAFS. This per unit fee will cover all administrative costs. This would
potentially increase Section 8 funding by $9,600 per year.
Recommended Motion:
Authorize the submittal to MHFA of an application for 20 RAFS vouchers.
Basis of Recommendation:
1. Self sufficiency is a significant component of welfare reform.
2. A significant barrier to self sufficiency is housing costs.
3. The RAFS program will help current Richfield residents become economically self
sufficient by reducing their housing costs.
Alternative Recommendation:
Defer submitting an application for RAFS vouchers.
Discussion/Decision Mode:
The application deadline to MHFA is February 13, 1998.
Respectful y submitted,
James D. Prosser
Executive Director
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 9
Agenda January 20, 1998
Issue Statement:
Consideration of the proposed approval of Richfield Rediscovered New Construction
Program, Cycle V:
• Modification to Redevelopment Project Area A
• Modifications to Tax Increment Financing District Nos. A-1, A-2, A-3, and A-4
• Establishment of Tax Increment Financing District No. A-5 (a redevelopment district)
• Modification to Redevelopment Project Area B
• Modifications to Tax Increment Financing District Nos. B-1, B-2, B-3, and B-4
• Establishment of Tax Increment Financing District No. B-5 (a redevelopment district)
(An explanation of the above alpha-numeric system immediately follows this letter.)
Background:
Over the past several years, Richfield Rediscovered New Construction Program Plans
have been modified in order to provide for the clearance of small, substandard houses
and make available vacant lots for the construction of larger, market-rate, single family
homes in the community. The Richfield Rediscovered New Construction Program
continues the goals and objectives originally set forth at program inception in 1990.
The Cycle V program is specifically aimed at:
• providing a composite list of 82 qualifying, candidate properties for potential
acquisition;
• purchasing and demolishing nine substandard properties during 1998;
• • providing for the construction of at least nine new homes valued at an average of
$135,000 (the average value of new homes built in 1995 and 1996 was $146,000);
• generating land sale proceeds as a source of program revenue; and
• continuing to provide new, larger single family and townhome opportunities to
potential residents and to current residents who want to remain in Richfield.
Initial purchases in Cycle V will be made with Development Fund revenues. Later this
year an alternative funding program will be presented as Development Fund revenues
will no longer be available.
The Redevelopment Plans and Tax Increment Plans under the current proposal are
attached for review. The following is a summary of these plans. It is encouraged that
the maps, budgets, and cashflows contained within the plans be reviewed in
conjunction with this summary.
Modification of Redevelopment Project Area Plans for Project Areas A and B:
? Project boundary expansions to both project areas to include qualifying parcels that
lie near Crosstown Highway 62 for Project Area A and near Penn Avenue and 66th
Street for Project Area B.
? Identification of 46 scattered sites within Project Area A and 36 scattered sites within
Project Area B, for a total of 82 properties which are qualifying, substandard candidate
properties for acquisition and redevelopment.
Modification of Tax Increment Financing District Nos. A-1, A-2, A-3, and A-4 and Tax
Increment Financing District Nos. B-1, B-2, B-3, and B-4:
? A "housekeeping" measure to bring these specific plans into alignment with Hennepin
County's tax increment lists and the State Auditor's annual tax increment reports, as
well as simplify internal management of program properties.
Establishment of Tax Increment Financing District No. A-5 (a redevelopment district)
and Tax Increment Financing District No. B-5 (a redevelopment district):
? Creation of two new scattered-site, tax increment redevelopment districts (District A-5
within Project Area A, and District B-5 within Project Area B) whose terms are not to
exceed 25 years.
? Creation of two new lists of qualifying properties --- 46 properties for Tax Increment
District A-5 and 36 properties for Tax Increment District B-5 - - totaling 82 properties
from which to draw that could effectively provide for the construction of 85 new single
family, market rate homes (three double lots are included), depending on funding
sources.
? Establishment of new tax increment expenditure budgets.
In order to implement the proposed program, the attached resolutions must be adopted
by the HRA. Each resolution provides for the:
1) approval of the redevelopment plans, as modified;
2) approval of the establishment of the new tax increment financing districts and
adoption of the tax increment financing plans related thereto;
• 3) referral of these documents to the Planning Commission for review and comment at
with regard to conformity to the Comprehensive Plan of the City; and
4) referral of these documents to the City Council for consideration, public hearing, and
proposed approval.
Recommended Motion:
Adopt the three attached resolutions which:
A) Approves Modification to the Redevelopment Plan for Redevelopment Project
Area A; establishes Tax Increment Financing District No. A-5 (a redevelopment
district); and creates a Tax Increment Financing Plan for Tax Increment Financing
District A-5.
B) Approves Modification to the Redevelopment Plan for Redevelopment Project
Area B; establishes Tax Increment Financing District No. B-5 (a redevelopment
district); and creates a Tax Increment Financing Plan for Tax Increment Financing
District B-5.
C) Approves Modifications to the Tax Increment Financing Plans for Tax Increment
Financing Districts A-1, A-2, A-3, A-4, B-1, B-2, B-3, and B-4 (all redevelopment
districts).
D) Requests the Planning Commission to review the redevelopment plans and tax
increment financing plans and find the plans and property acquisitions and
dispositions to be in conformance with the Comprehensive Plan of the City at their
meeting of January 27, 1998.
0
E) Requests the City Council to hold a public hearing on February 23, 1998 and
consider the redevelopment plans and tax increment financing plans for final
approvals.
Basis of Recommendation:
1. The Richfield Rediscovered New Construction Program continues to be a-
successful program in the community which clears small, substandard houses and
provides vacant lots for the construction of larger, market-rate, single family homes
in the community.
2. Richfield Rediscovered is a proven redevelopment program yet requires the
modification of its plans from time to time in order to provide updated lists of
qualifying properties and tax increment budgetary considerations.
3. The Planning Commission is required to review the proposed plans and any
modifications thereto in order to make a finding with regard to the conformity of the
plans, land acquisition, and disposition to the Comprehensive Plan of the City.
4. The HRA's development consultant has prepared the plans in conjunction with legal
counsel's review and found them to be in compliance with existing law.
Alternative Recommendation:
1. Modify the proposed program.
2. Delay action until a future time.
• Discussion/Decision Mode:
The proposed modifications to existing plans and creation of new plans are being
processed to provide new updated candidate property lists for construction
opportunities for the 1998 construction season. The Cycle IV lists were approved in
1995. As in the past, the HRA will be requested from time to time to approve the
purchase of specific properties.
Respec Ily submitted,
#eciv?e Prosser
Director
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EXPLANATION OF ALPHA-NUMERIC ORGANIZATIONAL SYSTEM
RICHFIELD REDISCOVERED
The Richfield Rediscovered New Construction Program is organized alpha-numerically
because of its cyclical nature. The original program established two redevelopment
project areas, Project Area A and Project Area B. The properties which are purchased
during any given cycle become the tax increment district for that cycle. Cycle I
began when the program was initiated. Properties purchased from the approved plan
lists became the tax increment district for that cycle, thus the designation A-1 and B-1.
If the current proposed modification is approved, the properties purchased from the two
lists of potential candidates in the documents would be designated as Tax Increment
District A-5 and B-5.
The next two pages are copies of maps which appear in the plan documents. The first
map shows the A and B project areas (And also the two proposed areas of
enlargement). The second map identifies by dots the potential list of 82 candidates (46
in A and 36 B). All of the properties purchased as part of Cycle V will be designated A-
5 or B-5.
40 HRA RESOLUTION NO.
RESOLUTION MODIFYING REDEVELOPMENT PROJECT AREA "A"
AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN RELATED
THERETO; ESTABLISHING WITHIN REDEVELOPMENT PROJECT AREA "A",
TAX INCREMENT FINANCING DISTRICT NO. A-5 AND ADOPTING
THE TAX INCREMENT FINANCING PLAN RELATED THERETO; ALL RELATING TO
THE RICHFIELD REDISCOVERED NEW CONSTRUCTION PROGRAM
WHEREAS, it has been proposed that the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the "HRA") adopt the Modification
to the Redevelopment Plan for Redevelopment Project Area "A", establish Tax
Increment Financing District No. A-5, and adopt the Tax Increment Financing Plan
related thereto, (collectively, the "Program and Plan"), all related to the Richfield
Rediscovered New Construction Program, and all pursuant to and in conformity with
existing law, including Minnesota Statutes, Sections 469.001 through 469.047, and
Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modification
to the Program and Plan and presented for the HRA's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Program and Plan
and has caused the Program and Plan to be prepared; and
WHEREAS, the proposed developments as described in the Program and Plan,
in the opinion of the HRA, would not reasonably be expected to occur solely through
private investment within the reasonable foreseeable future and, therefore, the use of
tax increment financing is deemed necessary; and
WHEREAS, the HRA has performed all actions required by law to be performed
prior to the adoption of the Modification to the Program and Plan, but not limited to,
notification of Hennepin County and School District No. 280 having taxing jurisdiction
over the property to be included in Tax Increment Financing District No. A-5, notice of a
potential redevelopment district to the local county commissioner, a request for review
of and written comment on the Program and Plan by the City Planning Commission,
and a request that the City Council schedule a public hearing on the Program and Plan
upon published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield as follows:
1) The HRA hereby finds that Tax Increment Financing District No. A-5 is in the public
interest and is a "redevelopment district" under Minnesota Statutes, Section
469.174, subd. 10 (a)(1), and finds that the adoption of the proposed Program and
Plan will advance the HRA's and City's objectives of encouraging redevelopment
• within Redevelopment Project Area "A".
2) Conditioned upon the approval thereof by the City Council following its public
hearing thereon, the Program and Plan, as presented to the HRA on this date, are
hereby approved, established and adopted and shall be placed on file in the office of
the City Clerk.
3) Upon approval of the Program and Plan by the City Council, the staff, the HRA's
advisors and legal counsel are authorized and directed to proceed with the
implementation of the Program and Plan and for this purpose to negotiate, draft,
prepare and present to the HRA for its consideration all further plans, resolutions,
documents and contracts necessary for this purpose. Approval of the Program and
Plan does not constitute approval of any project or a Development Agreement with
any developer.
4) Upon approval of the Program and Plan by the City Council, the City Clerk is
authorized to forward a copy of the Program and Plan to the Hennepin County
Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes
469.175, subdivision 2.
Approved by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of January, 1998.
0
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
0
0 HRA RESOLUTION NO.
RESOLUTION MODIFYING REDEVELOPMENT PROJECT AREA "B"
AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN RELATED
THERETO; ESTABLISHING WITHIN REDEVELOPMENT PROJECT AREA "B",
TAX INCREMENT FINANCING DISTRICT NO. B-5 AND ADOPTING
THE TAX INCREMENT FINANCING PLAN RELATED THERETO; ALL RELATING TO
THE RICHFIELD REDISCOVERED NEW CONSTRUCTION PROGRAM
WHEREAS, it has been proposed that the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the "HRA") adopt the Modification
to the Redevelopment Plan for Redevelopment Project Area "B", establish Tax
Increment Financing District No. B-5, and adopt the Tax Increment Financing Plan
related thereto, (collectively, the "Program and Plan"), all related to the Richfield
Rediscovered New Construction Program, and all pursuant to and in conformity with
existing law, including Minnesota Statutes, Sections 469.001 through 469.047, and
Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modification
to the Program and Plan and presented for the HRA's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Program and Plan
and has caused the Program and Plan to be prepared; and
WHEREAS, the proposed developments as described in the Program and Plan,
in the opinion of the HRA, would not reasonably be expected to occur solely through
private investment within the reasonable foreseeable future and, therefore, the use of
tax increment financing is deemed necessary; and
WHEREAS, the HRA has performed all actions required by law to be performed
prior to the adoption of the Modification to the Program and Plan, but not limited to,
notification of Hennepin County and School District No. 280 having taxing jurisdiction
over the property to be included in Tax Increment Financing District No. B-5, notice of a
potential redevelopment district to the local county commissioner, a request for review
of and written comment on the Program and Plan by the City Planning Commission,
and a request that the City Council schedule a public hearing on the Program and Plan
upon published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield as follows:
1) The HRA hereby finds that Tax Increment Financing District No. B-5 is in the public
interest and is a "redevelopment district" under Minnesota Statutes, Section
469.174, subd. 10 (a)(1), and finds that the adoption of the proposed Program and
• Plan will advance the HRA's and City's objectives of encouraging redevelopment
within Redevelopment Project Area "B".
2) Conditioned upon the approval thereof by the City Council following its public
hearing thereon, the Program and Plan, as presented to the HRA on this date, are
hereby approved, established and adopted and shall be placed on file in the office of
the City Clerk.
3) Upon approval of the Program and Plan by the City Council, the staff, the HRA's
advisors and legal counsel are authorized and directed to proceed with the
implementation of the Program and Plan and for this purpose to negotiate, draft,
prepare and present to the HRA for its consideration all further plans, resolutions,
documents and contracts necessary for this purpose. Approval of the Program and
Plan does not constitute approval of any project or a Development Agreement with
any developer.
4) Upon approval of the Program and Plan by the City Council, the City Clerk is
authorized to forward a copy of the Program and Plan to the Hennepin County
Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes
469.175, subdivision 2.
Approved by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of January, 1998.
0
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
0
0 HRA RESOLUTION NO.
RESOLUTION MODIFYING WITHIN REDEVELOPMENT PROJECT AREA "A",
TAX INCREMENT FINANCING DISTRICTS A-1, A-2, A-3 AND A-4, AND ADOPTING
THE MODIFICATIONS TO THE TAX INCREMENT FINANCING PLANS RELATED
THERETO; MODIFYING WITHIN REDEVELOPMENT PROJECT AREA "B",
TAX INCREMENT FINANCING DISTRICTS B-1, B-2, B-3 AND B-4 AND ADOPTING
THE MODIFICATIONS TO THE TAX INCREMENT FINANCING PLANS RELATED
THERETO; ALL RELATED TO THE RICHFIELD REDISCOVERED
NEW CONSTRUCTION PROGRAM
WHEREAS, it has been proposed that the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the "HRA") modify the Tax
Increment Financing Plans (collectively, the "Modifications") for Tax Increment
Financing Districts A-1, A-2, A-3, A-4, B-1, B-2, B-3 and B-4 (the "Districts"), all related
to the Richfield Rediscovered New Construction Program, to clarify the budgets to meet
new formats for financial reporting for tax increment, clarify indebtedness, and identify
parcels which have been certified in each district, all pursuant to and in conformity with
existing law, including Minnesota Statutes, Sections 469.001 through 469.047, and
Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the
Modifications and presented for the HRA's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Modifications and
has caused the Modifications to be prepared; and
WHEREAS, the proposed developments, as described in the Modifications, in
the opinion of the HRA, would not reasonably be expected to occur solely through
private investment within the reasonable foreseeable future and, therefore, the use of
tax increment financing is deemed necessary; and
WHEREAS, the HRA has performed or will perform all actions required by law to
be performed prior to the adoption of the Modifications, but not limited to, notification of
Hennepin County and School District No. 280 having taxing jurisdiction over the
property included in the Districts, a request for review of and written comment on the
Modifications by the City Planning Commission, and a request that the City Council
schedule a public hearing on the Modifications upon published notice as required by
law.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield as follows:
1) The HRA is not modifying the boundaries of Tax Increment Financing Districts A-1,
• A-2, A-31 A-41 B-1, B-21 B-3 and B-4 nor modifying the boundaries of
Redevelopment Projects Area A and B.
2) The HRA reaffirms the findings previously made with respect to Tax Increment
Financing Districts A-1, A-2, A-3, A-4, B-1, B-2, B-3 and B-4.
3) Conditioned upon the approval thereof by the City Council following its public
hearing thereon, the Modifications, as presented to the HRA on this date, are
hereby approved and adopted and shall be placed on file in the office of the City
Clerk.
4) Upon approval of the Modifications by the City Council and the Planning
Commission, the staff, the HRA's advisors and legal counsel are authorized and
directed to proceed with the implementation of the Modifications and for this
purpose to negotiate, draft, prepare and present to this Board for its consideration
all further plans, resolutions, documents and contracts necessary for this purpose.
5) Upon approval of the Modifications by the City Council, the City Clerk is authorized
to forward a copy of the Modifications to the Hennepin County Auditor and the
Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175,
subdivision 2.
Approved by the Housing and Redevelopment Authority in and for the City of
Richfield this 20th day of Janua , 1998.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
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•
AaL Draft as of January 14, 1998
Draft for HRA Review
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT NO. A-5
(a redevelopment district)
within
REDEVELOPMENT PROJECT AREA A
I•
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD
HENNEPIN COUNTY
STATE OF MINNESOTA
Public Hearing: February 23, 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.ehiers-inc.com
TABLE OF CONTENTS
(for reference purposes only)
SECTION I - MODIFICATION TO THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT AREA A ..................................... 1-1
Foreword .................................................................1-1
Subsection C. Description of Redevelopment Project Area .......................... 1-1
Subsection G. Acquisition and Relocation Activities ............................ 1-2
SECTION II - TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. A -5 ......................................................... A2-1
Subsection 2-1. Foreword .................................................. A2-1
Subsection 2-2. Statutory Authority ........................................... A2-1
Subsection 2-3. Statement of Objectives ....................................... A2-1
Subsection 2-4. Redevelopment Plan Overview .................................. A2-1
Subsection 2-5. Legal Description of Property in Tax Increment Financing District No. A-5 A2-2
Subsection 2-6. Classification of Tax Increment Financing District No. A-5 ........... A2-3
Subsection 2-7. Original Tax Capacity and Tax Rate ............................. A2-4
Subsection 2-8. Estimated Captured Net Tax Capacity Value/Increment .............. A2-4
Subsection 2-9. Property To Be Acquired ...................................... A2-5
Subsection 2-10. Uses of Funds ............................................... A2-5
Subsection 2-11. Sources of Revenue/Bonded Indebtedness ......................... A2-6
Subsection 2-12. Definition of Tax Increment Revenues ............................ A2-6
Subsection 2-13. Duration of Tax Increment Financing District No. A-5 ............... A2-7
• Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions .................... A2-7
Subsection 2-15. Notification of Prior Planned Improvements ............. . A2-8
Subsection 2-16. Administration of Tax Increment Financing District No. A-5 .......... A2-8
Subsection 2-17. Municipal Approval and Public Purpose .......................... A2-8
Subsection 2-18. Fiscal Disparities Election ..................................... A2-9
Subsection 2-19. State Tax Increment Financing Aid .............................. A2-9
Subsection 2-20. County Road Costs .......................................... A2-10
Subsection 2-21. Summary .................................................. A2-10
APPENDIX A - BOUNDARY MAPS OF REDEVELOPMENT PROJECT AREA A AND
TAX INCREMENT FINANCING DISTRICT NO. A-5 .............................. A-1
APPENDIX B - LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
TAX INCREMENT FINANCING DISTRICT NO. A-5 .............................. B-1
APPENDIX C - ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING
DISTRICT NO. A-5 .......................................................... C-1
APPENDIX D - REDEVELOPMENT QUALIFICATIONS FOR TAX INCREMENT FINANCING
DISTRICT NO. A-5 .......................................................... D-1
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SECTION I
?. MODIFICATION TO THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT AREA A
Foreword
The following text represents a Modification to the Redevelopment Plan for Redevelopment Project Area A.
This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan
for Redevelopment Project Area A. Generally, the substantive changes include modifying the boundaries of
Redevelopment Project Area A as specified below.
For further information, a review of the Redevelopment Plan for Redevelopment Project Area A, adopted July
16, 1990, is recommended. It is available from the City Clerk-Treasurer at the City of Richfield. Other
relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing
Districts located within Redevelopment Project Area A.
Subsection C. Description of Redevelopment Project Area
The modified boundary lines for Redevelopment Project Area A are as follows:
Beginning at the intersection of the southerly right-of-way line of East 62nd Street and the easterly right-of-
way line of 11th Avenue South, thence, in a line easterly more or less, along said southerly right-of-way line
to its intersection with the westerly right-of-way line of Bloomington Avenue South. Thence, southerly along
said westerly right-of-way line to its intersection with the southerly right-of-way line of East 63rd Street.
Thence, easterly along said southerly right-of-way line to its intersection with the easterly right-of-way line of
16th Avenue. Thence, southerly along said easterly right-of-way to its intersection with the northerly property
line of Lot 2, Block 1, Iverson's Second Addition. Thence, easterly along said northerly property line, as
extended, to its intersection with the westerly right-of-way line of 18th Avenue South. Thence, southerly along
said westerly right-of-way line to its intersection with the southerly right-of-way line of Diagonal Boulevard.
Thence, southwesterly more or less, along with said southerly right-of-way line to its intersection with the
southerly right-of-way line of East 73rd Street. Thence, westerly along said southerly right-of-way line to its
intersection with the easterly property line of Lot 5, Block 4, Henry Thernell Addition. Thence, southerly
along said easterly property line, as extended, to its intersection with the northerly right-of-way line of East
76th Street. Thence, westerly along said northerly right-of-way line to its intersection with the westerly
property line of Lot 4, Block 8, Sunset Terrace. Thence, northerly along said westerly property line, as
extended, to its intersection with the northerly property line of Lot 8, Block 8, Sunset Terrace. Thence,
westerly along said northerly property line, as extended, to its intersection with the easterly right-of-way line
of Lyndale Avenue South. Thence, northerly along said easterly right-of-way line to its intersection with the
southerly right-of-way line of West 74th Street. Thence, westerly along said southerly right-of-way to its
intersection with the easterly property line of Lot 26, Block 25, Irwin Shores. Thence, southerly along said
easterly property line, as extended, to its intersection with the northerly right-of-way line of West 76th Street.
Thence, westerly along said northerly right-of-way line to the intersection with the westerly right-of-way line
of Fremont Avenue South.
Thence, northerly along said westerly right-of-way line to its intersection with the northerly right-of-way line
of Humboldt Avenue South. Thence, northwesterly and northerly more or less, along said northerly right-of-
way line to its intersection with the southerly right-of-way line of West 73rd Street. Thence, easterly more or
• less, along said southerly right-of-way line to its intersection with the easterly right-of-way line of Lyndale
Avenue South. Thence, northerly more or less, along with said easterly right-of-way line to its intersection
Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area A 1-1
. with the southerly right-of-way line of West 68th Street. Thence, easterly along said southerly right-of-way
line to its intersection with the easterly right-of-way line of Pleasant Avenue South. Thence, northerly along
said easterly right-of-way line to its intersection with the northerly property line of Lot 7, Block 2, Ralph
Hollenbach's First Addition. Thence, easterly, along said northerly property line, as extended, to the easterly
right-of-way line of Wentworth Avenue South. Thence, southerly along said easterly right-of-way line to its
intersection with the northerly property line of Lot 6, Block 2, Oaklane Addition. Thence easterly along said
northerly property line, as extended, to its intersection with the westerly right-of-way line of Blaisdell Avenue
South. Thence, southerly along said westerly right-of-way line to its intersection with the southerly right-of-
way line of West 68th Street. Thence, easterly along said southerly right-of-way line to its intersection with
the easterly right-of-way line of Nicollet Avenue South. Thence, northerly along said, easterly right-of-way
line to its intersection with the northerly right-of-way line of East 67th Street. Thence, easterly along said
northerly right-of-way line to its intersection with the easterly right-of-way line of First Avenue South. Thence,
northerly along said easterly right-of-way line to its intersection with the southerly right-of-way line to its
intersection with the southerly right-of-way line of East 66th Street. Thence easterly along said southerly
right-of-way line to its intersection with the easterly right-of-way line of Stevens Avenue. Thence, northerly
along said easterly right-of-way line to its intersection with the southerly right-of-way line of East 62nd Street.
Thence easterly along said southerly right-of-way line to its intersection with the westerly right-of-way line
of Clinton Avenue Thence southerly, more or less along said westerly right-of-way line to its intersection
with the southerly fight-of-way line of East 65th Street Thence westerly along said southerly right-of-way
line to its intersection with the easterly right-of-way line of 3rd Avenue Thence southerly along said easterly
right-of-way line to its intersection with the southerly right-of-way line of East 66th Street. Thence, easterly
along said southerly right-of-way line to its intersection with the easterly right-of-way line of I Ith Avenue
South. Thence, northerly along said easterly right-of-way line to the point of beginning.
0 Subsection G. Acquisition and Relocation Activities
Acquisition
In furtherance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in
previous years to identify property for acquisition. In its sequential numbering system, this is Cycle V in the
housing program. As in the past, residential property owners were contacted and surveyed to determine (a.)
whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if
interested, within which time frame. Additional means of obtaining candidate properties were made by (a.)
property owners contacting the HRA requesting that their property be considered for the program and (b.)
referrals by the City's health and inspections department. Candidate properties were further evaluated for
program eligibility and inspected. The properties identified for acquisition under Cycle V of the program are
listed in Appendix A of the Tax Increment Financing Plan for Tax Increment Financing District No. A-5.
Relocation
The HRA accepts as binding its obligations under provisions of federal and state law (M.S., Chapter 117) for
relocation.
•
Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area A 1-2
• SECTION II
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. A-5
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 Tax Increment Financing
District No. A-5 ("District No. A-5"), a redevelopment tax increment financing district, located in
Redevelopment Project Area A.
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 District No. A-5. Other relevant
information is contained in the Modification to the Redevelopment Plan for Redevelopment Project Area A.
Subsection 2-3. Statement of Objectives
District No. A-5 currently consists of 46 parcels of land and adjacent and internal rights-of-way. District No.
• A-5 is created to facilitate the demolition of substandard houses and enable families to construct new houses
on the lots through a program known as Richfield Rediscovered, which is administered by the HRA. Currently
District A-5 consists of 46 lots with the potential for a total of 48 new homes to be constructed, including
double lots. Due to the voluntary nature and timing of the sale of the homes included in District A-5, it is
likely that some of the parcels will not be redeveloped or will be included in subsequent tax increment
financing districts. The budget for District No. A-5 found in Subsection 2-10 does assume that 48 new homes
are built. This plan is expected to achieve many of the objectives outlined in the Modification to the
Redevelopment Plan for Redevelopment Project Area A.
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 District No. A-5 and Redevelopment Project Area A.
Subsection 2-4. Redevelopment Plan Overview
Property to be Acquired - Selected property located within District No. A-5 may be
acquired by the City or HRA and is further described in this Plan.
2. 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 District No. A-5 or may lease land or facilities to a developer.
3. The City or HRA may perform or provide for some or all necessary acquisition,
construction, relocation, demolition, and required utilities and public streets work within
District No. A-5.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-1
Subsection 2-5. Legal Description of Property in Tax Increment Financing District No. A-5
District No. A-5 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 District No. A-5.
Property Address PID Number
634 Bloomington 26-028-24-11-0025
6437 Bloomington 26-028-24-14-0088
6507 Bloomington 26-028-24-14-0116
6508 Bloomington 26-028-24-13-0097
6220 Clinton 27-028-24-11-0001
6915 Clinton 27-028-24-44-0113
7316 Clinton** 34-028-24-14-0086
7027 Columbus 35-028-24-22-0001
7333 Emerson 33-028-24-13-0090
7537 Emerson 33-028-24-42-0132
7240 Garfield 34-028-24-23-0096
7301 Garfield 34-028-24-23-0129
6833 Grand 27-028-24-33-0070
7133 Lyndale ** 34-028-24-22-0055
• 7201 Nicollet 34-028-24-13-0100
6609 Oakland 26-028-24-32-0031
6833 Park 26-028-24-33-0086
6800 Pillsbury 27-028-24-34-0016
6816 Pleasant 27-028-24-33-0061
6820 Pleasant 27-028-24-33-0062
6833 Portland 26-028-24-33-0111
7300 Portland 34-028-24-14-0015
7304 Portland 34-028-24-14-0016
7415 Portland 35-028-24-32-0009
6608 Stevens 27-028-24-42-0073
6609 Second Avenue 27-028-24-42-0056
6616 Second Avenue 27-028-24-42-0064
7241 Second Avenue 34-028-24-13-0150
6228 Third Avenue 27-028-24-12-0005
6641 Fourth Avenue 27-028-24-41-0132
6620 Fifth Avenue 27-028-24-41-0028
6921 Twelfth Avenue 26-028-24-43-0098
6515 Thirteenth Avenue 26-028-24-13-0145
6915 Thirteenth Avenue 26-028-24-43-0064
6237 Fourteenth Avenue 26-028-24-12-0069
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-2
. Property Address
6326 Fourteenth Avenue
6329 Fourteenth Avenue
6349 Fourteenth Avenue
6408 Fourteenth Avenue
6537 Fourteenth Avenue
6928 Fourteenth Avenue
6945 Fourteenth Avenue
6217 Fifteenth Avenue
6245 Fifteenth Avenue
6324 Fifteenth Avenue
6408 Fifteenth Avenue
** Denotes double lot
PID Number
26-028-24-12-0140
26-028-24-12-0091
26-028-24-12-0087
26-028-24-13-0117
26-028-24-13-0087
26-028-24-43-0069
26-028-24-43-0013
26-028-24-12-0058
26-028-24-12-0052
26-028-24-12-0081
26-028-24-13-0053
Subsection 2-6. Classification of Tax Increment Financing District No. A-5
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 District No. A-5, to be established, is a
redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below:
(a) "Redevelopment district" means a --type of tax increment financing district consisting of
a project, or portions of a project, within which the authorityfinds by resolution that one
of the following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area in the district are occupied by
buildings, streets, utilities, or other improvements and more than 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
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
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-3
• prepared of the cost of repair and rehabilitation of the building. An interior inspection of the
property is not required, if the municipalityfinds that (1) the municipality or authority is unable
to gain access to the property after using its best efforts to obtain permission from the party that
owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion
that the building is structurally substandard...
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or other
improvements until 15 percent of the area of the parcel contains improvements.
In meeting the statutory criteria described above, the City and HRA rely on the following facts and findings:
¦ District No. A-5 is a redevelopment district consisting of 46 parcels.
¦ An inventory of the parcels shows that at least 70 percent of the area of District A-5 consists of parcels
in District No. A-5 are occupied as defined in the TIF Act. An inspection of the buildings located
within District No. A-5 finds that more than 50 percent of the buildings are structurally substandard as
defined in the T1F Act. (See Appendix D)
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 District No. A-5 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, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 1999) the amount by which the original value has increased or decreased as a result of:
1. change in tax exempt status of property;
2. reduction or enlargement of the geographic boundaries of the district;
3. change due to adjustments, negotiated or court-ordered abatements;
4. change in the use of the property and classification;
5. change in state law governing class rates; or
6. change in connection with previously issued building permits.
In any year in which the current Net Tax Capacity value of District No. A-5 declines below the ONTC, no
value will be captured and no tax increment will be payable to the City or HRA.
It is expected that the original local tax rate for District No. A-5 will be the local tax rate for taxes payable
1999. The estimate below is proposed payable 1998.
The Original Tax Capacity and the Original Local Tax Rate for District No. A-5 appear in the table below.
Original Tax Capacity Value $27,002
Percent Retained by City 100%
Original Local Tax Rate 1.37491
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
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A24
Captured Net Tax Capacity (CTC) of District No. A-5, within Redevelopment Project Area A, 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 2000. The project tax capacity listed is an estimate
of values when the project is completed.
Project Estimated Tax Capacit
upon Completion of Project (PIC) $89,280
Original Estimated Net Tax Capacity (ONTC) 27,002
Estimated Captured Tax Capacity (CTC) 62,278
Estimated Annual Tax Increment
(CTC x Local Tax Rate) $85,627
Subsection 2-9. Property To Be Acquired
The City or HRA may acquire any parcel within District No. A-5 including interior and adjacent street rights
of way. The parcels are listed in Subsection 2-5.
1. Any properties identified for acquisition will be acquired by the City or HRA only in order to
accomplish one or more of the following: carry out land acquisition, site improvements, clearance and/or
development to accomplish the uses and objectives set forth in this plan.
2. The following are conditions under which properties not designated to be acquired may be acquired:
• The City or HRA may acquire property by gift, dedication, condemnation or direct purchase from
willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisitions
will be undertaken only when there is assurance of funding to finance the acquisition and related costs.
Subsection 2-10. Uses of Funds
Currently under consideration for District No. A-5 is a proposal to facilitate the demolition of substandard
houses and enable families to construct new houses on the lots. The City and HRA have determined that it
will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of
the development or redevelopment of property in and around District No. A-5. To facilitate the establishment
and development or redevelopment of District No. A-5, 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
District No. A-5 over the life of the district is outlined in the following table.
Uses of Funds Per House Total
Land Acquisition
Site Preparation
(Demolition/Grading)
Interest
Administrative Costs (up to 10%)
65,000 $3,120,000
10,000 480,000
23,585 1,132,567
5,000 240,000
TOTAL $103,585 $4,972,567
Estimated costs associated with District No. A-5 are subject to change. The cost of all activities to be
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-5
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 District No. A-5 will be spent on activities related to
development or redevelopment outside of District No. A-5 but within the boundaries of Redevelopment Project
Area A, (including administrative costs, which are considered to be spent outside of District No. A-5) subject
to the limitations as de1cribed in this Plan.
Subsection 2-.1L Sources of Revenue/Bonded Indebtedness
Acquisition and site preparation costs outlined in the Uses of Funds will be financed primarily through the
annual collection of tax increments. The City or HRA reserves the right to use other sources of revenue legally
applicable to the Modification to the Redevelopment Plan and the Plan, including, but not limited to, special
assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale
of land, other contributions from the developer and investment income, to pay for the estimated public costs.
The City or HRA reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan.
As presently proposed, the project may be financed by a bond issue or loans. Additional indebtedness may
be required to finance other authorized activities. The total principal amount of bonded indebtedness or other
indebtedness related to the use of tax increment financing will not exceed without a modification to the Plan
pursuant to applicable statutory requirements.
This provision does not obligate the City or HRA to incur debt. The City or HRA may issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The City or HRA
may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or
HRA.
The estimated sources of funds for District No. A-5 over the life of the district are contained in the table below.
Sources of Funds Per House Total
Tax Increment
Land Sales
Other Tax Increment/Grants
Local Contribution
$44,579 $2,140,666
30,000 1,440,000
26,778 1,284,864
2,229 107,033
TOTAL $103,585 $4,972,563
Subsection 2-12. Definition of Tax Increment Revenues
Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing
district include all of the following potential revenue sources:
1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under
M.S., Section 469.177;
2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority
with tax increments;
3. repayments of loans or other advances made by the authority with tax increments; and
4. interest or other investment earnings on or from tax increments.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-6
•
•
•
Subsection 2-13. Duration of Tax Increment Financing District No A-5
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of District No. A-5
must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of District No.
A-5 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 2000. Thus, it is estimated that
District No. A-5, includinb 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 District
No. A-5 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 District No. A-5. 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 District No. A-5 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 62,278 0.0067%
I.S.D. No. 280 26,436,495 62,278 0.2356%
City of Richfield 17,976,447 62,278 0.3464%
IMPACT ON TAX RATES
Hennepin County
I.S.D. No. 280
City of Richfield
Metro Area
Watershed
Other
Total
1997/1998 Percent
Extension Rates of Total CTC
0.384710 27.98% 62,278
0.632310 45.99% 62,278
0.276640 20.12% 62,278
0.056330 4.10% 62,278
0.006590 0.48% 62,278
0.018330 1.33% 62,278
1.374910 100.00%
Potential
Taxes
23,959
39,379
17,229
3,508
410
1,142
85,627
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the estimated 1997/Pay 1998 rate. The total net capacity for the entities listed above
are based on estimated Pay 1998 figures. District No. A-5 will be certified under the actual 1997/1998 rates,
which were unavailable at the time this Plan was prepared.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5
A2-7
Subsection 2-15. Notification of Prior Planned Improvements
The City or HRA shall, after due and diligent search, accompany its request for certification to the County
Auditor or its notice of District No. A-5 enlargement with a listing of all properties within District No. A-5
or area of enlargement for which building permits have been issued during the eighteen (18) months
immediately preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3.
The County Auditor shall increase the original value of District No. A-5 by the value of improvements for
which a building permit was issued.
Pursuant to M.S,'Section 469.177, Subd 4, the City is in the process of reviewing the area to be included
in District No. A-5 to determine if any building permits have been issued during the 18 months
immediately preceding approval of the Plan by the City and HRA.
Subsection 2-16. Administration of Tax Increment Financing District No. A-5
Administration of District No. A-5 will be handled by the Executive Director of the HRA of the City of
Richfield.
Subsection 2-17. Municipal Approval and Public Purpose
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for District
No. A-5 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows:
1. Finding that District No. A-5 is a redevelopment district as defined in M.S., Section 469.174, Subd.
10(a)(1)
District No. A-5 consists of 46 parcels, with plans to redevelop the area for residential purposes. At
least 70 percent of the District consists of parcels which are occupied by buildings, streets, utilities, or
other improvements and more than 50 percent of the buildings in District No. A-5, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See
Appendix D).
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that
the increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the
maximum duration of District No. A-5 permitted by the Plan.
Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings and
the cost of financing the proposed improvements, this project is feasible only through assistance, in part,
from tax increment financing.
A comparative analysis of estimated market values both with and without establishment of Tax
Increment Financing District No. A-5 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 District
No. A-5, the total increased market value would be up to $3,779,800. It is the Council's finding that
no development with a market value of greater than $2,771,701 would occur without tax increment
. assistance in this district within 25 years. This finding is based upon evidence from general past
experience with the high cost of acquisition and site improvements in the general area of District No.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5
A2-8
Ol A-5 (see Cashflow in Appendix Q.
3. Finding that the Tax Increment Financing Plan for District No. A-5 conforms to the general plan for
the development or redevelopment of the municipality as a whole.
The Plan will be reviewed by the Planning Commission on January 27, 1998 in order to find that the
Plan is in conformance with the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for District No. A-Swill afford maximum opportunity,
cmmsistent with the sound needs of the City as a whole, for the development or redevelopment of
Redevelopment Project Area A by private enterprise.
The project to be assisted by District No. A-5 will result in increased employment in the City and the
State of Minnesota, the renovation of substandard properties, increased tax base of the State and add
a high quality development to the City.
Additional findings are set forth in the Authorizing Resolution of the City.
Subsection 2-18. Fiscal Disparities Election
No commercial/industrial property is expected to be constructed in District No. A-5.
Subsection 2-19. 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. District No. A-5 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 District No. A-5, 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
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-9
Plan or other costs related to that development or redevelopment. The contribution may also be made in the
form of public improvements financed by the City or HRA or other unit of government with unrestricted funds.
Subsection 2-20. County Road Costs
Pursuant to M.S., Section' 469.175, Subd. la, the county board may require the City or HRA to pay for all or
part of the cost of county road improvements if the proposed development to be assisted by tax increment will,
in the judgement of the county, substantially increase the use of county roads requiring construction of road
improvements or other road costs and if the road improvements are not scheduled within the next five years
under a capital improvement plan or other county plan.
In the opinion of the City and HRA and consultants, the proposed development outlined in this Plan will have
little or no impact upon county roads. If the county elects to use increments to improve county roads, it must
notify the City or HRA within thirty days of receipt of this Plan.
Subsection 2-21. Summary
The City of Richfield is establishing District No. A-5 to preserve and enhance the tax base, redevelop
substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for
District No. A-5 was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota
55402-4100, telephone (612) 697-8500.
•
•
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. A-5 A2-10
•
APPENDIX A
BOUNDARY MAPS OF REDEVELOPMENT PROJECT AREA A AND
TAX INCREMENT FINANCING DISTRICT NO. A-5
•
•
APPENDIX
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APPENDIX B
LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
TAX INCREMENT FINANCING DISTRICT NO. A-5
Property Address PID Number
6345 Bloomington 26-028-24-11-0025
6437 Bloomington 26-028-24-14-0088
6507 Bloomington 26-028-24-14-0116
6508 Bloomington 26-028-24-13-0097
6220 Clinton 27-028-24-11-0001
6915 Clinton 27-028-24-44-0113
7316 Clinton** 34-028-24-14-0086
7027 Columbus 35-028-24-22-0001
7333 Emerson 33-028-24-13-0090
7537 Emerson 33-028-2442-0132
7240 Garfield 34-028-24-23-0096
7301 Garfield 34-028-24-23-0129
6833 Grand 27-028-24-33-0070
7133 Lyndale ** 34-028-24-22-0055
7201 Nicollet 34-028-24-13-0100
6609 Oakland 26-028-24-32-0031
6833 Park 26-028-24-33-0086
6800 Pillsbury 27-028-24-34-0016
6816 Pleasant 27-028-24-33-0061
6820 Pleasant 27-028-24-33-0062
6833 Portland 26-028-24-33-0111
7300 Portland 34-028-24-14-0015
7304 Portland 34-028-24-14-0016
7415 Portland 35-028-24-32-0009
6608 Stevens 27-028-24-42-0073
6609 Second Avenue 27-028-24-42-0056
6616 Second Avenue 27-028-24-42-0064
7241 Second Avenue 34-028-24-13-0150
6228 Third Avenue 27-028-24-12-0005
6641 Fourth Avenue 27-028-24-41-0132
6620 Fifth Avenue 27-028-24-41-0028
6921 Twelfth Avenue 26-028-24-43-0098
6515 Thirteenth Avenue 26-028-24-13-0145
6915 Thirteenth Avenue 26-028-24-43-0064
6237 Fourteenth Avenue 26-028-24-12-0069
APPENDIX B-1
•
•
Property Address
6326 Fourteenth Avenue
6329 Fourteenth Avenue
6349 Fourteenth Avenue
6408 Fourteenth Avenue
6537 Fourteenth Avenue
6928 Fourteenth Avenue
6945 Fourteenth Avenue
6217 Fifteenth Avenue
6245 Fifteenth Avenue
6324 Fifteenth Avenue
6408 Fifteenth Avenue
** Denotes double lot
APPENDIX
PID Number
26-028-24-12-0140
26-028-24-12-0091
26-028-24-12-0087
26-028-24-13-0117
26-028-24-13-0087
26-028-24-43-0069
26-028-24-43-0013
26-028-24-12-0058
26-028-24-12-0052
26-028-24-12-0081
26-028-24-13-0053
B-2
•
•
APPENDIX
APPENDIX C
ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING DISTRICT NO. A-5
C-1
CITY OF RICHFIELD, MINNESOTA
TAX INCREMENT FINANCING DISTRICT #A-5
T.I.F. CASH FLOW ASSUMPTIONS
. Interest Rate:
Tax Extension Rate: 6.000%
Inflation Rate: 1.37491 Pay 98 Estimate
0.0000%
BASE VALUE INFORMATION
Tax
MV Per Unit # Units Market Value Capacity
Various Parcels 58,700 46 2,700,200 WW2
Total
27,002
PROJECT VALUE INFORMATION
Type of Tax Increment District: Housing
Number of Units:
Class Rates: 48
Single Family <$75k 1.0000%
Single Family >$75k 1.8500%
Estimated Market Value On all Projects:
Estimated Total Market Value per Unit 6,480,000 Pay 00
Estimated Additonal Market Value Per Unit: 135,000
Estimated Tax Capacity: 7s,3oo
Estimated Taxes: 89,280 Pay 00
Estimated Taxes Per Unit: 122,752
Estimated Tax Increment: 2,557
Estimated Tax Increment Per Unit: 85,627
Estimated Land Sales 1,784
Estimated Land Sales Per Unit 1,440,000
30,000
BUT / FOR ANALYSIS
Current Market Value - Est.
New Market value -Est. 2 700 200
Difference 6,480,000
Present Value of Tax Increment 3,779,800
.
Difference 1,008'099
2
771
701
Value Likely to Occur Without TIF is Less Than: ,
,
•
Ehlers and Associates, Inc.
01/12/98 Page 1
CITY OF RICHFIELD, MINNESOTA
TAX INCREMENT FINANCING DISTRICT #A-5
•
Base
Project
C TAX INCREMENT CASH FLOW
PERIOD BEGINNING
Tax
Ta aptured Semi-Annual Admin. Semi-Annual Local Match Years
Yrs. Mth. Yr.
Capacity x
capacity Tax
Ca aci Gross Tax
Increment at
10
10%
I.
e
at
NDl
r.
em
RI
0.0 08-01 1998 27,002 27,002 p
0 . I c
reme
nt 5.00% Incr
ent Yrs.
Mth.
Y
0.5 02-01 1999 27,002 27,002
0
0 0 0 0 0.0 0.5 02-01 1999
1.0 08-01 1999 27,002 27,002 0
0 0 0 0.0 1.0
-01 1999
1.5 02-01 2000
2.0 08-01 2000
27,002
27
002
89,280
62,278
42,813
,324
(4,324) 0
38,489 0
2
141
02-01
0.0 1.5 02
2000
0
5
2.5 02-01 2001 ,
27,002 89,280
89
280 62,278
62
278 42,813 )
,324
(4
38,489 ,
2,141 .
2.0 08-01 2000
1.0 2.5 02-01 2001
3.0 08-01 2001
3
5 02 27,002 ,
89,280 ,
62,278 42.813
42,813 ,324324)
(4(4 ,
489
3838 2
141
: 1
.5
3.0
-
2001
.
-01 2002
4
0 08-01 2002 27,002 89,280 62,278 42,813 ,
,324
(4,324) ,
489
38
489 2:
141 02
01
2.0
3.5 02
-01 2002
.
4.5 02-01 2003 27,002
27
002 89,280 62,278 42.813 )
.324
(4 ,
38,489 21
14
2
141 2.5 4.0 08-01 2002
3
5.0 08-01 2003 ,
27,002 89,280
89
280 62,278
62
278 42,813 )
,324
(4
38,489 ,
2.141 .0 4.5 02-01 2003
3.5 5.0 08-01 2003
5.5 02-01 2004
6
0 08
01 27,002 ,
89,280 ,
62,278 42,813
42,813 )
,324
(4
324
(4 38
,489
38
4 2,141 4.0 5.5 02-01 2004
.
-
2004
6.5 02-01 2005 27,002 89,280 62,278 42,813 ,
;
(4,324 ,
89
38
489 2,141 4.5 6.0 08-01 2004
7.0 08-01 2005 27,002
27
002 89,280 62,278 42,813 )
,324
(4 ,
38,489 2,141
2
141 5.0 6.5 02-01 2005
7.5 02-01 2006 ,
27,002 89,280
89
280 62,278
62
278 42,813 )
,324
(4
38,489 ,
2,141 5.5 7.0 OS-01 2005
6.0 7.5 02-01 2006
8.0 08-01 2006
8
5 02
01 27,002 ,
89,280 ,
62,278 42,813
42.813 (4,324)
324
(4 38,489
38
48 2.141 6.5 8.0 08-01 2006
.
-
2007
9.0 08-01 2007 27,002 89,280 62.278 42,813 ,
(4,324) ,
9
38
489 2,141 7.0 8.5 02-01 2007
9.5 02-01 2008 27,002
27
002 89,280 62,278 42,813
(4,324 ,
38,489 2.141
2
141 7.5 9.0 08-01 2007
8
10.0 08-01 2008 ,
27,002 89,280
89
280 62,278
62
278 42,813
(4,324)
38,489 ,
2,141 .0 9.5 02-01 2008
8.5 10.0 08-01 2008
10.5 02-01 2009
11
0 08
0 27,002 ,
89,280 ,
62,278 42,813
42.813 ,324
(4
324)
(4 38,489
3 2.141 9.0 10.5 02-01 2009
.
-
1 2009
11.5 02-01 2010 27,002
27
00 89,280 62,278 42,813 ,
(4,32 8,489
38
489 2,141
2
141 9.5 11.0 08-01 2009
12.0 08-01 2010 ,
2
27,002 89,280
89
280 62.278
6 42,813 4
,32
4
(4 ,
38,489 ,
2,
141 10.0 11.5 02-01 2010
10
5
12
0
01
08
12.5 02-01 2011 27,002 ,
89,280 2,278
62
278 42,813
42
813 )
324
(4, 38
,489 2,
141 02-
2010
.0 .
.5 02.
11
12
-01 2011
13.0 08-01 2011
13
5 02
01 27,002 89,280 ,
62,278 ,
42,813 (4,324)
(4,324)
324 38,489
8
48 2,141 11.5 13.0 08-01 2011
.
-
2012
14
0 08-01 2012 27,002 89,280 62.278 42.813 ,
) ,
9
38
489 2,141 12.0 13.5 02-01 2012
.
14.5 02-01 2013
27,002
27
002
89,280
89
62,278
42,813
(4,324) ,
8,489 2,141
2
141 12.5 14.0 08-01 2012
13
0 1
15.0 08-01 2013
15.5 02-01 2014
,
27,002
27
002
,280
89,280
62,278
62,278
42,813
42.813
(4,324)
(4,324)
8,489
38
489 ,
2,141
2
141 .
4.5 02-01 2013
13.5 15.0 08-01 2013
16
0 08
01
,
89,280
62.278
42.813
(4
324) ,
38
489 , 14.0 15.5 02-01 2014
.
-
2014
16
5 02-01 2015
27.002
89,280
62,278
42.813 ,
(4,324) ,
8
489 2,141 14.5 16.0 08-01 2014
.
17.0 08-01 2015
27,002
27
002
89,280
62,278
42,813
(4,324) ,
38,489 2,141
2
141 15.0 16.5 02-01 2015
17.5 02-01 2016
,
27,002
89,280
89
280
62,278
6
42.813
(4,324)
38,489 ,
2,141 15.5 17.0 08-01 2015
16
0 17
5 02
18.0 08-01 2016
27,002
,
89,280
2,278
62
278
42.813
42
813
(4,324)
38,489
2,141 .
.
-01 2016
16.5 18.0 08-01 2016
18.5 02-01 2017
19
0 08
01
27,002
89,280 ,
62,278 .
42.813 (4.324)
(4
324) 38,489
38 2,141 17.0 18.5 02-01 2017
.
-
2017
19.5 02-01 2018
27,002
89,280
62.278
42.813 ,
(4,324) ,489
38
489 2,141 17.5 19.0 08-01 2017
20.0 08-01 2018
27,002
27
002
89,280
89
62,278
42,813
(4,324) ,
38,489 2,141
2
141 18.0 19.5 02-01 2018
18
5
20.5 02-01 2019
,
27,002
,280
89
280
62,278
62
278
42,813
(4,324)
8,489 ,
2,141 .
20.0 08-01 2018
19.0 20.5 02-01 2019
21.0 08-01 2019
21
5 02
01
27,002 ,
89,280 ,
62.278 42.813
42.813 (4.324)
(4
324) 38,489
38 2,141 19.5 21.0 08-01 2019
.
-
2020
22.0 08-01 2020
27,002
89,280
62,278
42.813 ,
(4,324) ,489
38
489 2,141 20.0 21.5 02-01 2020
22.5 02-01 2021
27,002
27
002
89,280
89
62,278
42.813
(4,324) ,
38,489 2,141
2
141 20.5 22.0 08-01 2020
21
0
23.0 08-01 2021
,
27,002
,280
89
280
62.278
62
278
42.813
(4,324)
38,489 ,
2,141 .
22.5 02-01 2021
21.5 23
0 08-01 2021
23.5 02-01 2022
24
0 08
01
27,002 .
89,280 .
62,278 42,813
42.813 (4,324)
(4
324) 38,489
38 2,141 .
22.0 23.5 02-01 2022
.
-
2022
24.5 02-01 2023
27,002
89,280
62,278
42.813 ,
(4.324) ,489
38
489 2,141 22.5 24.0 08-01 2022
25.0 08-01 2023
27,002
27
002
89,280
62,278
42.813
(4,324) ,
38,489 2,141
2
141 23.0 24.5 02-01 2023
2
25.5 02-01 2024
,
27,002
89,280
89
280
62,278
62
278
42,813
(4,324)
38,489 ,
2,141 3.5 25.0 08-01 2023
24.0 25
5 02-01 2024
26.0 08-01 2024
27,002 ,
89,280 .
62.278 42.813
42
813 (4,324) 38,489
2,141 .
24.5 26.0 08-01 2024
Totals .
4.324
2.140.666 216,207 38,489
1,924,459 21141
107.033 25.0 26.5 02-01 2025
Ehlers and Associates. Inc.
01/12/98
Page 2
9 APPENDIX D
REDEVELOPMENT QUALIFICATIONS FOR TAX INCREMENT FINANCING DISTRICT NO. A-5
Redevelopment qualifications are on file with the City of Richfield.
APPENDIX
D-1
Draft as of January 14, 1998
Draft for HRA Review
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT NO. B-5
(a redevelopment district)
within
REDEVELOPMENT PROJECT AREA B
•
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD
HENNEPIN COUNTY
STATE OF MINNESOTA
Public Hearing: February 23, 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.ehiers-inc.com
•
TABLE OF CONTENTS
(for reference purposes only)
DISTRICT NO. B-5 ......................................................... 132-1
Subsection 2-1. Foreword .................................................. 132-1
Subsection 2-2. Statutory Authority ........................................... 132-1
Subsection 2-3. Statement of Objectives ................. 132-1
SECTION I - MODIFICATION TO THE REDEVELOPMENT PLAN FOR
... ................................. . .
REDEVELOPMENT PROJECT AREA B . . . . .1-1
Foreword ..... ...........................................................1-1
Subsection C. Description of Redevelopment Project Area .......................... 1-1
Subsection G. Acquisition and Relocation Activities .............................. 1-2
SECTION 17 TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
Subsection 2-4.
Subsection 2-5.
Subsection 2-6.
Subsection 2-7.
Subsection 2-8.
Subsection 2-9.
Subsection 2-10.
Subsection 2-11.
Subsection 2-12.
Subsection 2-13.
Subsection 2-14.
Subsection 2-15.
Subsection 2-16.
Subsection 2-17.
Subsection 2-18.
Subsection 2-19.
Subsection 2-20.
Subsection 2-21.
Redevelopment Plan Overview .................................. 132-1
Legal Description of Property in Tax Increment Financing District No. B-5 B2-2
Classification of Tax Increment Financing District No. B-5 132-3
Original Tax Capacity and Tax Rate ............................. 132-4
Estimated Captured Net Tax Capacity Value/Increment .............. B2-4
Property To Be Acquired ...................................... 132-4
Uses of Funds ............................................... 132-5
Sources of Revenue/Bonded Indebtedness ......................... 132-5
Definition of Tax Increment Revenues ............................ 132-6
Duration of Tax Increment Financing District No. B-5 ............... 132-6
Estimated Impact on Other Taxing Jurisdictions .................... B2-6
Notification of Prior Planned Improvements ....................... B2-7
Administration of Tax Increment Financing District No. B-5 .......... 132-7
Municipal Approval and Public Purpose .......................... 132-8
Fiscal Disparities Election ..................................... 132-9
State Tax Increment Financing Aid .............................. B2-9
County Road Costs ........................................... B2-9
Summary .................................................. B2-10
APPENDIX A - BOUNDARY MAPS OF REDEVELOPMENT PROJECT AREA B AND
TAX INCREMENT FINANCING DISTRICT NO. B-5 ............................... A-1
APPENDIX B - LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
TAX INCREMENT FINANCING DISTRICT NO. B-5 ............................... B-1
APPENDIX C - ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING
DISTRICT NO. B-5 ........................................................... C-2
APPENDIX D - REDEVELOPMENT QUALIFICATIONS FOR TAX INCREMENT FINANCING
DISTRICT NO. B-5 ........................................................... D-1
0
SECTION I
MODIFICATION TO THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT AREA B
Foreword
The following text represents a Modification to the Redevelopment Plan for Redevelopment Project Area B.
This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan
for Redevelopment Project Area B. Generally, the substantive changes include modifying the boundaries of
Redevelopment Project Area B as specified below.
For further information, a review of the Redevelopment Plan for Redevelopment Project Area B, adopted July
16, 1910, is recommended. It is available from the City Clerk-Treasurer at the City of Richfield. Other
relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing
Districts located within Redevelopment Project Area B.
Subsection C. Description of Redevelopment Proiect Area
The modified boundary lines for Redevelopment Project Area B are as follows:
Beginning at the intersection of the south right-of-way line of State Highway, No. 62 and the east right-of-way
line of Oliver Avenue South, thence in a line easterly more of less, along said south right-of-way line to its
intersection with the west right-of-way-line of Pleasant Avenue South. Thence southerly along said west right-
of-way line to its intersection with the south right-of-way line of West 63rd Street. Thence westerly along said
south right-of-way line to its intersection with the west right-of-way line of Aldrich Avenue South. Thence,
southerly along said west right-of-way line to its intersection with the south property line of Lot 4, Block 2,
Ray's Lynnhurst Second Addition. Thence, westerly along said south property line, as extended, to its
intersection with the east property line of Lot 9, Block 2, Ray's Lynnhurst Second Addition. Thence, southerly
along said east property line, as extended, to its intersection with the south property line of Lot 5, Block 2,
Ray's Lynnhurst Section Addition. Thence, westerly along said south property line, as extended, to its
intersection with the south right-of-way line of Mildred Drive. Thence, westerly more or less, along said south
right-of-way line to its intersection with the east right-of-way of Emerson Avenue South. Thence, southerly
along said east right-of-way line to its intersection with the north property line of Lot A, Silverwood Second
Addition. Thence, easterly along said north property line, as extended, to its intersection with the east property
line of Lot A, Silverwood Second Addition. Thence, southerly along said east property line, as extended, to
its intersection with the south right-of-way line of West 66th street. Thence, westerly along said south right-of-
way line to its intersection with the west right-of-way line of Humboldt Avenue South. Thence, southerly
along said west right-of-way line to its intersection with the north right-of-way line of West 69th Street.
Thence, westerly along said north right-of-way line to its intersection with the west right-of-way line of Irving
Avenue South. Thence, southerly along said west right-of-way line to its intersection with the south right-of-
way line of West 72nd Street. Thence, easterly along said south right-of-way line to its intersection with the
west right-of-way line of Humboldt Avenue South. Thence, southerly along said west right-of-way line to its
intersection with the north right-of-way line of West 73rd Street. Thence, westerly along said north right-of-
way line to its intersection with the west right-of-way line of Penn Avenue South. Thence, southerly along
said west right-of-way line to its intersection with the north right-of-way line of West 74th Street. Thence,
westerly along said north right-of-way line to its intersection with the west right-of-way line of Sheridan
Avenue South. Thence, southerly along said west right-of-way line to its intersection with the north right-of-
way line of West 76th street.. Thence, westerly along said north right-of-way line to its intersection with the
east right-of-way line of Xerxes Avenue South. Thence, northerly along said east right-of-way line to its
Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area B 1-1
intersection with the south right-of-way line of West 66th Street. Thence, easterly along said south right-of-
way line to its intersection with the east right-of-way line of Russell Avenue South. Thence, southerly along
said east right-of-way line to its intersection with the north property line of Lot 23, Block 2, Tingdale Brothers
Lincoln Hills. Thence, easterly along said north property line, as extended, to its intersection with the east
property line of Lot 23, Block 2, Tingdale Brothers Lincoln Hills. Thence, southerly along said east property
line, as extended, to its intersection with the south right-of-way line of West 67th Street. Thence, easterly
along said south right-of-way line to its intersection with the east property line of Lot 24, Block 16, Tingdale
Brothers Lincoln Hills. Thence, southerly along said east property line, as extended, to its intersection with
the north right-of-way line of West 69th Street. Thence, easterly along said north right-of-way line to its
intersection with the east right-of-way line of Penn Avenue South. Thence, northerly along said east right-of-
way line to its intersection with the south right-of-way line of West 67th Street. Thence, easterly along said
south right-of-way line to its intersection with the east right-of-way line of Oliver Avenue South. Thence,
northerly along said east right-of-way line to its intersection with the south property line of Lot 13, Block 11,
Ray's Lynnhurst Addition. Thence westerly along said south property line, as extended, to the center line of
the alley of Block 12, Ray's Lynnhurst Addition. Thence northerly along said centerline to the south right-of-
way line of West 63rd Street. Thence easterly along said south right-of-way line to the east right-of-way line
of Oliver Avenue South. Thence northerly along said east right-of-way line to the point of beginning.
Subsection G. Acquisition and Relocation Activities
Acquisition
In furtherance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in
previous years to identify property for acquisition. In its sequential numbering system, this is Cycle V in the
housing program. As in the past, residential property owners were contacted and surveyed to determine (a.)
whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if
interested, within which time frame. Additional means of obtaining candidate properties were made by (a.)
property owners contacting the HRA requesting that their property be considered for the program and (b.)
referrals by the City's health and inspections department. Candidate properties were further evaluated for
program eligibility and inspected. The properties identified for acquisition under Cycle V of the program are
listed in Appendix A of the Tax Increment Financing Plan for Tax Increment Financing District No. B-5.
Relocation
The HRA accepts as binding its obligations under provisions of federal and state law (M.S., Chapter 117) for
relocation.
0
Richfield HRA Modification to the Redevelopment Plan for Redevelopment Project Area B 1-2
• SECTION II
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. B-5
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 Tax Increment Financing
District No. B'-5 ("District No. B-5"), a redevelopment tax increment financing district, located in
Redevelopment Project Area B.
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 District No. B-5. Other relevant
information is contained in the Modification to the Redevelopment Plan for Redevelopment Project Area B.
Subsection 2-3. Statement of Objectives
District No. B-5 currently consists of 36 parcels of land and adjacent and internal rights-of-way. District No.
B-5 is created to facilitate the demolition of substandard houses and enable families to construct new houses
• on the lots through a program known as Richfield Rediscovered, which is administered by the HRA. Currently
District B-5 consists of 36 lots with the potential for a total of 37 new homes to be constructed, including
double lots. Due to the voluntary nature and timing of the sale of the homes included in District B-5, it is
likely that some of the parcels will not be redeveloped or will be included in subsequent tax increment
financing districts. The budget for District No. B-5 found in Subsection 2-10 does assume that 37 new homes
are built. This plan is expected to achieve many of the objectives outlined in the Modification to the
Redevelopment Plan for Redevelopment Project Area B.
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 District No. B-5 and Redevelopment Project Area B.
Subsection 2-4. Redevelopment Plan Overview
1. Property to be Acquired - Selected property located within District No. B-5 may be
acquired by the City or HRA and is further described in this Plan.
2. 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 District No. B-5 or may lease land or facilities to a developer.
3. The City or HRA may perform or provide for some or all necessary acquisition,
construction, relocation, demolition, and required utilities and public streets work within
• District No. B-5.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 132-1
Subsection 2-5. Legal Description of Property in Tax Increment Financing District.No. B-5
•
District No. B-5 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 District No. B-5.
Property Address PID Number
6239 Aldrich 28-028-24-11-0020
6245 Aldrich 28-028-24-11-0019
6300 Aldrich 28-028-24-11-0041
7432 Aldrich 33-028-24-41-0026
7525 Aldrich 33-028-24-41-0164
6744 Blaisdell 27-028-24-31-0007
7436 Bryant 33-028-24-41-0048
7500 Colfax 33-028-24-41-0083
7520 Colfax 33-028-24-41-0088
6305 Girard 28-028-24-12-0027
6320 Girard 28-028-24-12-0033
6331 Girard 28-028-24-12-0022
6421 Girard 28-028-24-13-0008
7532 Girard 33-028-24-42-0074
6440 Humboldt 28-028-24-24-0009
6306 Irving 28-028-24-21-0126
6310 Irving 28-028-24-21-0075
•
6805 Irving 28-028-24-34-0008
6645 Knox 28-028-24-31-0032
6700 Oliver 28-028-24-32-0067
6855 Penn 28-028-24-33-0146
6817 Queen ** 29-028-24-44-0013
6913 Queen 29-028-24-44-0175
6924 Queen 29-028-24-44-0141
6933 Queen 29-028-24-44-0170
7227 Queen 32-028-24-14-0017
7332 Queen 32-028-24-14-0083
6813 Russell 29-028-24-44-0038
6817 Russell 29-028-24-44-0037
6820 Russell 29-028-24-44-0046
6824 Russell 29-028-24-44-0047
6917 Russell 29-028-24-44-0154
6608 Stevens 27-028-24-42-0073
6736 Upton 29-028-24-42-0132
7332 Upton 32-028-24-13-0059
6900 Vincent 29-028-24-43-0121
** Denotes double lot
0
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 132-2
•
Subsection 2-6. Classification of Tax Increment Financing District No. B-5
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 District No. B-5, to be established, is a
redevelopment district, pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below:
(a) "Redevelopment district" means a type of tax increment financing district consisting of
a project, or portions of a project, within which the authorityfinds by resolution that one
of the following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area in the district are occupied by
buildings, streets, utilities, or other improvements and more than 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.
0
(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
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 municipalityfinds that (1) the municipality or authority is unable
to gain access to the property after using its best efforts to obtain permission from the party that
owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion
that the building is structurally substandard...
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or other
improvements until 15 percent of the area of the parcel contains improvements.
In meeting the statutory criteria described above, the City and HRA rely on the following facts and findings:
¦ District No. B-5 is a redevelopment district consisting of 36 parcels.
¦ An inventory of the parcels shows that at least 70 percent of the area of District B-5 consists of parcels
in District No. B-5 are occupied as defined in the TIF Act. An inspection of the buildings located
within District No. B-5 finds that more than 50 percent of the buildings are structurally substandard as
defined in the TIF Act. (See Appendix D)
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 132-3
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 District No. B-5 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, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 1999) the amount by which the original value has increased or decreased as a result of:
1. change in tax exempt status of property;
2. reduction or enlargement of the geographic boundaries of the district;
3. change due to adjustments, negotiated or court-ordered abatements;
4. change in the use of the property and classification;
5. change in state law governing class rates; or
6. change in connection with previously issued building permits.
In any year in which the current Net Tax Capacity value of District No. B-5 declines below the ONTC, no
value will be captured and no tax increment will be payable to the City or HRA.
It is expected that the original local tax rate for District No. B-5 will be the local tax rate for taxes payable
1999. The estimate below is proposed payable 1998.
The Original Tax Capacity and the Original Local Tax Rate for District No. B-5 appear in the table below.
Original Tax Capacity Value $23,112
Percent Retained by City 100%
Original Local Tax Rate 1.37491
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 District No. B-5, within Redevelopment Project Area B, 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 2000. The project tax capacity listed is an estimate
of values when the project is completed.
Project Estimated Tax Capacity
upon Completion of Project (PTC) $68,820
Original Estimated Net Tax Capacity (ONTC) 23,112
Estimated Captured Tax Capacity (CTC) 45,708
Estimated Annual Tax Increment
(CTC x Local Tax Rate) $62,844
Subsection 2-9. Property To Be Acquired
The City or HRA may acquire any parcel within District No. B-5 including interior and adjacent street rights
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 132-4
of way. The parcels are listed in Subsection 2-5.
1. Any properties identified for acquisition will be acquired by the City or HRA only in order to
accomplish one or more of the following: carry out land acquisition, site improvements, clearance and/or
development to accomplish the uses and objectives set forth in this plan.
2. The following are conditions under which properties not designated to be acquired may be acquired:
The City or HRA may acquire property by gift, dedication, condemnation or direct purchase from
willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisitions
will be undertaken only when there is assurance of funding to finance the acquisition and related costs.
Subsection 2-10. Uses of Funds
Currently under consideration for District No. B-5 is a proposal to facilitate the demolition of substandard
houses and enable families to construct new houses on the lots. The City and HRA have determined that it
will be necessary to provide assistance to the. project for certain costs. The City has studied the feasibility of
the development or redevelopment of proper ty in and around District No. B-5. To facilitate the establishment
and development or redevelopment of District No. B-5, 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
District No. B-5 over the life of the district is outlined in the following table.
Uses of Funds Per House Total
Land Acquisition $65,00 $2,405,000
Site Preparation
(Demolition/Grading) 10,000 370,000
Interest 22,466 831,231
Administrative Costs (up to 10%) 5,000 185,000
TOTAL $102,466 $3,791,231
Estimated costs associated with District No. B-5 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 District No. B-5 will be spent on activities related to
development or redevelopment outside of District No. B-5 but within the boundaries of Redevelopment Project
Area B, (including administrative costs, which are considered to be spent outside of District No. B-5) subject
to the limitations as described in this Plan.
Subsection 2-11. Sources of Revenue/Bonded Indebtedness
Acquisition and site preparation costs outlined in the Uses of Funds will be financed primarily through the
annual collection of tax increments. The City or HRA reserves the right to use other sources of revenue legally
applicable to the Modification to the Redevelopment Plan and the Plan, including, but not limited to, special
assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale
of land, other contributions from the developer and investment income, to pay for the estimated public costs.
The City or HRA reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan.
As presently proposed, the project may be financed by a bond issue or loans. Additional indebtedness may
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 132-5
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 without a modification to the Plan
pursuant to applicable statutory requirements.
This provision does not obligate the City or HRA to incur debt. The City or HRA may issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The City or HRA
may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or
HRA.
The estimated sources of funds for District No. B-5 over the life of the district are contained in the table below.
Sources of Funds Per House Total
Tax Increment
Land Sales
Other Tax Increment/Grants
Local Contribution
$42,462 $1,571,110
30,000 1,110,000
27,880 1,031,560
2,123 78,555
TOTAL $102,466 $3,791,225
Subsection 2-12. Definition of Tax Increment Revenues
Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing
district include all of the following potential revenue sources:
1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under
M.S., Section 469.177;
2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority
with tax increments;
3. repayments of loans or other advances made by the authority with tax increments; and
4. interest or other investment earnings on or from tax increments.
Subsection 2-13. Duration of Tax Increment Financing District No. B-5
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of District No. B-5
must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of District No.
B-5 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 2000. Thus, it is estimated that
District No. B-5, 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 District
No. B-5 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 District No. B-5. 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 District No. B-5 would be as follows if the "but for" test was not met:
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 132-6
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 45,708 0.0049%
I.S.D. No. 280 26,436,495 45,708 0.1729%
City of Richfield 17,976,447 45,708 0.2543%
IMPACT ON TAX RATES
1997/1998 Percent Potential
Extension Rates of Total CTC Taxes
Hennepin County 0.384710 27.98% 45,708 17,584
I.S.D. No. 280 0.632310 45.99% 45,708 28,902
City of Richfield 0.276640 20.12% 45,708 12,645
Metro Area 0.056330 4.10% 45,708 2,575
Watershed 0.006590 0.48% 45,708 301
Other 0.018330 1.33% 45,708 838
Total 1.374910 100.00% 62,844
i The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the estimated 1997/Pay 1998 rate. The total net capacity for the entities listed above
are based on estimated Pay 1998 figures. District No. B-5 will be certified under the actual 1997/1998 rates,
which were unavailable at the time this Plan was prepared.
Subsection 2-15. Notification of Prior Planned Improvements
The City or HRA shall, after due and diligent search, accompany its request for certification to the County
Auditor or its notice of District No. B-5 enlargement with a listing of all properties within District No. B-5 or
area of enlargement for which building permits have been issued during the eighteen (18) months immediately
preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County
Auditor shall increase the original value of District No. B-5 by the value of improvements for which a building
permit was issued.
Pursuant to M.S., Section 469.177, Subd. 4, the City is in the process of reviewing the area to be included
in District No. B-5 to determine if any building permits have been issued during the 18 months
immediately preceding approval of the Plan by the City and HRA.
Subsection 2-16. Administration of Tax Increment Financing District No. B-5
Administration of District No. B-5 will be handled by the Executive Director of the HRA of the City of
Richfield.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 B2-7
• Subsection 2-17. Municipal Approval and Public Purpose
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for District
No. B-5 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows:
1. Finding that District No. B-5 is a redevelopment district as defined in M.S., Section 469.174, Subd.
0(a)(1).
District No. B-5 consists of 36 parcels, with plans to redevelop the area for residential purposes. At
least 70 percent of the District consists of parcels which are occupied by buildings, streets, utilities, or
other improvements and more than 50 percent of the buildings in District No. B-5, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See
Appendix D).
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that
the increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the
maximum duration of District No. B-5 permitted by the Plan.
Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings and
the cost of financing the proposed improvements, this project is feasible only through assistance, in part,
from tax increment financing.
A comparative analysis of estimated market values both with and without establishment of Tax
Increment Financing District No. B-5 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 District
No. B-5, the total increased market value would be up to $2,683,800 It is the Council's finding that no
development with a market value of greater than $1,943,921 would occur without tax increment
assistance in this district within 25 years. This finding is based upon evidence from general past
experience with the high cost of acquisition and site improvements in the general area of District No.
B-5 (see Cashflow in Appendix Q.
3. Finding that the Tax Increment Financing Plan for District No. B-5 conforms to the general plan for
the development or redevelopment of the municipality as a whole.
The Plan will be reviewed by the Planning Commission on January 27, 1998 in order to find the Plan
in conformance with the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for District No. B-5 will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development or redevelopment of
Redevelopment Project Area B by private enterprise.
The project to be assisted by District No. B-5 will result in increased employment in the City and the
State of Minnesota, the renovation of substandard properties, increased tax base of the State and add
a high quality development to the City.
Additional findings are set forth in the Authorizing Resolution of the City.
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 62-8
Subsection 2-18. Fiscal Disparities Election
No commercial/industrial property is expected to be constructed in District No. B-5.
Subsection 2-19. 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. District No. B-5 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 District No. B-5, subject to the limitations described above, in any year
in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of
either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this
Plan or other costs related to that development or redevelopment. The contribution may also be made in the
form of public improvements financed by the City or HRA or other unit of government with unrestricted funds.
Subsection 2-20. County Road Costs
Pursuant to M.S., Section 469.175, Subd. M, the county board may require the City or HRA to pay for all or
part of the cost of county road improvements if the proposed development to be assisted by tax increment will,
in the judgement of the county, substantially increase the use of county roads requiring construction of road
improvements or other road costs and if the road improvements are not scheduled within the next five years
under a capital improvement plan or other county plan.
In the opinion of the City and HRA and consultants, the proposed development outlined in this Plan will have
little or no impact upon county roads. If the county elects to use increments to improve county roads, it must
notify the City or HRA within thirty days of receipt of this Plan.
r1
L-A
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 62-9
Is Subsection 2-21. Summary
The City of Richfield is establishing District No. B-5 to preserve and enhance the tax base and redevelop
substandard areas.. The Tax Increment Financing Plan for District No. B-5 was prepared by Ehlers &
Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55402-4100, telephone (612) 697-8500.
E
Richfield HRA Tax Increment Financing Plan for Tax Increment Financing District No. B-5 62-10
0 APPENDIX A
BOUNDARY MAPS OF REDEVELOPMENT PROJECT AREA B AND
TAX INCREMENT FINANCING DISTRICT NO. B-5
0
•
APPENDIX A-1
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•
APPENDIX B
LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
TAX INCREMENT FINANCING DISTRICT NO. B-5
Property Address PID Number
6239 Aldrich 28-028-24-11-0020
6245 Aldrich 28-028-24-11-0019
6300 Aldrich 28-028-24-11-0041
7432 Aldrich 33-028-24-41-0026
7525 Aldrich 33-028-24-41-0164
6744 Blaisdell 27-028-24-31-0007
7436 Bryant 33-028-24-41-0048
7500 Colfax 33-028-24-41-0083
7520 Colfax 33-028-24-41-0088
6305 Girard 28-028-24-12-0027
6320 Girard 28-028-24-12-0033
6331 Girard 28-028-24-12-0022
6421 Girard 28-028-24-13-0008
7532 Girard 33-028-24-42-0074
6440 Humboldt 28-028-24-24-0009
6306 Irving 28-028-24-21-0126
6310 Irving 28-028-24-21-0075
6805 Irving 28-028-24-34-0008
6645 Knox 28-028-24-31-0032
6700 Oliver 28-028-24-32-0067
6855 Penn 28-028-24-33-0146
6817 Queen ** 29-028-24-44-0013
6913 Queen 29-028-24-44-0175
6924 Queen 29-028-24-44-0141
6933 Queen 29-028-24-44-0170
7227 Queen 32-028-24-14-0017
7332 Queen 32-028-24-14-0083
6813 Russell 29-028-24-44-0038
6817 Russell 29-028-24-44-0037
6820 Russell 29-028-24-44-0046
6824 Russell 29-028-24-44-0047
6917 Russell 29-028-24-44-0154
6608 Stevens 27-028-24-42-0073
6736 Upton 29-028-24-42-0132
7332 Upton 32-028-24-13-0059
6900 Vincent 29-028-24-43-0121
** Denotes double lot
APPENDIX
B-t
i APPENDIX C
ESTIMATED CASH FLOW FOR TAX INCREMENT FINANCING DISTRICT NO. B-5
•
APPENDIX C-2
CITY OF RICHFIELD, MINNESOTA
TAX INCREMENT FINANCING DISTRICT #B-5
T.I.F. CASH FLOW ASSUMPTIONS
Interest Rate:
Tax Extension Rate: 61
1.374937491 Pay 98 Estimate
Inflation Rate: 0.0000%
BASE VALUE INFORMATION
Tax
MV Per Unit # Units Market Value Capacity
Various Parcels 64,200 36 2,311,200 23,112
Total 23,112
PROJECT VALUE INFORMATION
Type of Tax Increment District: Housing
Number of Units: 37
Class Rates:
Single Family <$75k 1.0000%
Single Family >$75k 1.8500%
Estimated Market Value On all Projects: 4,995,000 Pay 00
Estimated Total Market Value per Unit 135,000
Estimated Additonal Market Value Per Unit: 70,800
Estimated Tax Capacity: 68,820 Pay 00
Estimated Taxes: 94,621
Estimated Taxes Per Unit: 2,557
Estimated Tax Increment: 62,844
Estimated Tax Increment Per Unit: 1,698
Estimated Land Sales 1,110,000
Estimated Land Sales Per Unit 30,000
BUT / FOR ANALYSIS_
Current Market Value - Est. 2,311,200
New Market Value - Est. 4,995,000
Difference 2,683,800
Present Value of Tax Increment 739,879
Difference 1,943,921
Value Likely to Occur Without TIF is Less Than: 1,943,921
Ehlers and Associates, Inc. 01/12/98
Page 1
CITY OF RICHFIELD, MINNESOTA
TAX INCREMENT FINANCING DISTRICT #B-5
•
I ]l
TAX INCREMENT CASH FLOW
Base Project Captured Semi-Annual Admin. Semi-Annual Local Match Years
PERIOD BEGINNING Tax Tax Tax Gross Tax at Net Tax at Of PER IOD EN DING
Yrs. Mth. Yr. Capacity Capacity Capacity Increment 10.10% Increment 5.00% Increment Yrs. Mth. Yr.
0.0 08-01 1998 23,112 23,112 0 0 0 0 0 0.0 0.5 02-01 1999
0.5 02-01 1999 23,112 23,112 0 0 0 0 0 0.0 1.0 08-01 1999
1.0 08-01 1999 23,112 23,112 0 0 0 0 0 0.0 1.5 02-01 2000
1.5 02-01 2000 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 0.5 2.0 08-01 2000
2.0 08-01 2000 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 1.0 2.5 02-01 2001
2.5 02-01 2001 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 1.5 3.0 08-01 2001
3.0 08-01 2001 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 2.0 3.5 02-01 2002
3.5 02-01 2002 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 2.5 4.0 08-01 2002
4.0 08-01 2002 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 3.0 4.5 02-01 2003
4.5 02-01 2003 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 3.5 5.0 08-01 2003
5.0 08-01 2003 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 1 4.0 5.5 02-01 2004
5.5 02-01 2004 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 4.5 6.0 08-01 2004
6.0 08-01 2004 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 5.0 6.5 02-01 2005
6.5 02-01 2005 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 5.5 7.0 08-01 2005
7.0 08-01 2005 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 6.0 7.5 02-01 2006
7.5 02-01 2006 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 6.5 8.0 08-01 2006
8.0 08-01 2006 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 7.0 8.5 02-01 2007
8.5 02-01 2007 23,112 88,820 45,708 31,422 (3,174) 28,249 1,571 7.5 9.0 08-01 2007
9.0 08-01 2007 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 8.0 9.5 02-01 2008
9.5 02-01 2008 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 8.5 10.0 08-01 2008
10.0 08-01 2008 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 9.0 10.5 02-01 2009
10.5 02-01 2009 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 9.5 11.0 08-01 2009
11.0 08-01 2009 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571. 10.0 11.5 02-01 2010
11.5 02-01 2010 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 10.5 12.0 08-01 2010
12.0 08-01 2010 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 11.0 12.5 02-01 2011
12.5 02-01 2011 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 11.5 13.0 08-01 2011
13.0 08-01 2011 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 12.0 13.5 02-01 2012
13.5 02-01 2012 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 12.5 14.0 08-01 2012
14.0 08-01 2012 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 13.0 14.5 02-01 2013
14.5 02-01 2013 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 13.5 15.0 08-01 2013
15.0 08-01 2013 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 14.0 15.5 02-01 2014
15.5 02-01 2014 23.112 68,820 45,708 31,422 (3,174) 28,249 1,571 14.5 16.0 08-01 2014
16.0 08-01 2014 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 15.0 16.5 02-01 2015
16.5 02-01 2015 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 15.5 17.0 08-01 2015
17.0 08-01 2015 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 16.0 17.5 02-01 2016
17.5 02-01 2016 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 16.5 18.0 08-01 2016
18.0 08-01 2016 23,112 68,820 45,708 31,422 (3,174) 28,249 1,5711 17.0 18.5 02-01 2017
18.5 02-01 2017 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 17.5 19.0 08-01 2017
19.0 08-01 2017 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 18.0 19.5 02-01 2018
19.5 02-01 2018 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 18.5 20.0 08-01 2018
20.0 08-01 2018 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 19.0 20.5 02-01 2019
20.5 02-01 2019 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 19.5 21.0 08-01 2019
21.0 08-01 2019 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 20.0 21.5 02-01 2020
21.5 02-01 2020 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 20.5 22.0 08-01 2020
22.0 08-01 2020 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 21.0 22.5 02-01 2021
22.5 02-01 2021 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 21.5 23.0 08-01 2021
23.0 08-01 2021 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 22.0 23.5 02-01 2022
23.5 02-01 2022 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 22.5 24.0 08-01 2022
24.0 08-01 2022 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 23.0 24.5 02-01 2023
24.5 02-01 2023 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 23.5 25.0 08-01 2023
25.0 08-01 2023 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 24.0 25.5 02-01 2024
25.5 02-01 2024 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 24.5 26.0 08-01 2024
26.0 08-01 2024 23,112 68,820 45,708 31,422 (3,174) 28,249 1,571 25.0 26.5 02-01 2025
Totals 1,571,110 (158,682) 1,412,428 78,555
Present Values 739,879 (74,728) 665,151
Ehlers and Associates, Inc.
01/12/98
Page 2
• APPENDIX D
REDEVELOPMENT QUALIFICATIONS FOR TAX INCREMENT FINANCING DISTRICT NO. B-5
Redevelopment qualifications are on file with the City of Richfield.
•
•
APPENDIX D-1
•
Draft as of January 14, 1998
Draft for HRA Review a
MODIFICATION TO THE TAX INCREMENT FINANCING PLANS
FOR
TAX INCREMENT FINANCING DISTRICTS
A-1, A-2, A-3, A-4, B-1, B-2, B-3 AND B-4
(redevelopment districts)
•
Richfield Housing and Redevelopment Authority
City of Richfield
County of Hennepin
State of Minnesota
Modifications Adopted by HRA:
Public Hearing on Modifications: February 23, 1998
Modifications Adopted by City Council:
0
Modification to the Tax Increment Financing Plan for
Tax Increment Financing District A-1
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District A-1. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District A-1 ("District A-I ") as originally
adopted by the City Council on July 23, 1990 and modified from time to time since that date. District A-1 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District A-1 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District A-1, and identification of
the parcels which have been certified in District A-I by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District A-1, increasing the total
amount of the budget for District A-1, nor increasing the total amount of indebtedness for District A-1. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District A-I
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in,the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District A-1 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
Below is a chart which includes the tax increment financing parcels included in District A-1. All of the parcels
included in District A-1 were listed in the original tax increment plan and are not modifications to District A-1.
-1:
It is not expected that additional parcels will be certified to Hennepin County to be included in District A
•
Property
Address PID
Number HRA TIF
District No. County
Project Number Date of TIF
Cert. Request Date of
County Certification
7320 5th Ave. 34-028-24-14-0041 A-1 1254 12/06/90 05/10/91
6425 15th Ave. 26-028-24-13-0046 A-1 1254 12/06/90 05/10/91
6518 15th Ave. 26-028-24-13-0079 A-1 1254 12/06/90 05/10/91
6401 Bloomington Ave. 26-028-24-14-0096 A-1 1256 12/05/91 07/07/92
1256 =1254 expansion Amend 3119193
6538 Bloomington Ave. 26-028-24-13-0102 A-1 1256 06/25/92 07/07/92
1256 =1254 expansion Amend 3119193
7129 1st Ave. 34-028-24-12-0085 A-1 1256 10/23/91 07/07/92
1256 =1254 expansion Amend 3119193
6612 2nd Ave. 27-028-24-42-0068 A-1 1256 03/24/92 07/07/92
1256 =1254 expansion Amend 3119193
6407 15th Ave. 26-028-24-13-0049 A-1 1256 06/08/92 0.0108695652
1256 =1254 expansion Amend 3119193
6415 15th Ave. 26-028-24-13-0047 A-1 1256 06/25/92 07/07/92
1256 =1254 expansion Amend 3119193
6501 15th Ave. 26-028-24-13-0115 A-1 1256 4/14/92 & 07/07/92
1256 =1254 expansion 06/11/92 Amend 3119193
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-1 Page 1
Section G. Estimate of Costs
The following is a clarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District A-1 but are being changed to meet new reporting requirements and
include all potential categories of costs.
Total including the
July 23, 1990 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $1,009,393 $770,669
Demolition/Site Clearance 114,950 110,000
Administration 16,326 60,000
Interest 200,000
Total Cost $1,140,669 $1,140,669
Section H. Estimated Amount of Obligated Funds.
In the original tax increment financing plan and resolution approved by the City Council on July 23, 1990,
$1,000,000 of inter-fund loan proceeds from the City's sanitary sewer fund, water fund, and the HRA's LHN
tax increment fund ($333,333 per fund) were authorized to finance the activities of District A-1 and Tax
Increment Financing District B-1. Given the relative size of the original budgets for each of the tax increment
districts and the actual number of parcels certified, it is estimated that the authority for loans to be incurred by
District A-1 was 60% of the total authority or $600,000.
Section I. Sources of Revenue.
Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
Total including the
Revenue July 23, 1990
Original Budget February 23, 1998
Modification
Tax Increments $820,175 $720,000
Interest Earnings 0 10,000
Land Sale 0 400,000
Other 0 10,669
Total $820,175 $1,140,669
•
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-1 Page 2
' Modification to the Tax Increment Financing Plan for
Tax Increment Financing District B-1
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District B-1. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District B-1 ("District B-1 ") as originally
adopted by the City Council on July 23, 1990 and modified from time to time since that date. District B-1 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District B-1 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District B-1, and identification of
the parcels which have been certified in District B-1 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District B-1, increasing the total
amount of the budget for District B-1, nor increasing the total amount of indebtedness for District B-1. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District B-1
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District B-1 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
•
Below is a chart which includes the tax increment financing parcels included in District B-1. All of the parcels
included in District B-1 were listed in the original tax increment plan and are not modifications to District B-1.
It is not expected that additional parcels will be certified to Hennepin County to be included in District B-1:
Property
Address PID
Number HRA TIF
District No. County
Project Number Date of TIF
Cert. Request Date of
County Certification
6315 Dupont Ave. subd: 28-028-24-11-0067 B-1 1255 12/06/90 5/10/91 & 7/12/91
1016 Mildred Drive 28-028-24-11-0081
1020 Mildred Drive 28-028-24-11-0082
6424 James Ave. 28-028-24-24-0046 B-1 1255 05/14/91 07/12/91
7145 James Ave. 33-028-24-21-0078 B-1 1255 12/06/90 5/10/91 & 7/12/91
7210 James Ave. chgn: 33-028-24-24-0071 13-1 1255 12/06/90 5/10/91 & 7/12/91
7223 James Ave. 33-028-24-24-0071
6813 Logan Ave.; chgn 28-028-24-34-0052 B-1 1255 05/14/91 07/12/91
6809 Logan Ave.
6313 Morgan Ave. 28-028-24-22-0079 B-1 1255 05/14/91 07/12/91
6321 Humboldt Ave. 28-028-24-12-0046 B-1 1257 03/30/92 07/07/92
Modification to the Tax Increment Financing Plan For Tax Increment Financing District B-1 Page 1
Section G. Estimate of Costs
The following is a clarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District B-1 but are being changed to meet new reporting requirements and
include all potential categories of costs.
Total including the
July 23, 1990 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $425,007 $350,881
Demolition/Site Clearance 48,400 48,400
Administration 6,874 31,000
Interest 50,000 _
Total Cost $480,281 $480,281
0 District B-1 was 40% of the total authority or $400,000.
Section H. Estimated Amount of Obligated Funds.
In the original tax increment financing plan and resolution approved by the City Council on July 23, 1990,
$1,000,000 of inter-fund loan proceeds from the City's sanitary sewer fund, water fund, and the HRA's LHN
tax increment fund ($333,333 per fund) were authorized to finance the activities of District B-1 and Tax
Increment Financing District A-1. Given the relative size of the original budgets for each of the tax increment
districts and the actual number of parcels certified, it is estimated that the authority for loans to be incurred by
Section 1. Sources of Revenue.
Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
Total including the
July 23, 1990 February 23, 1998
Revenue Original Budget Modification
Tax Increments $452,775 $278,281
Interest Earnings 0 1,000
Land Sale 0 200,000
Other 0 1,000
Total $452,775 $480,281
•
Modification to the Tax Increment Financing Plan For Tax Increment Financing District B-1
Page 2
Modification to the Tax Increment Financing Plan for
Tax Increment Financing District A-2
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District A-2. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District A-2 ("District A-2") as originally
adopted by the City Council on July 20, 1992, and modified from time to time since that date. District A-2 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District A-2 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District A-2, and identification of
the parcels which have been certified in District A-2 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District A-2, increasing the total
amount of the budget for District A-2, nor increasing the total amount of indebtedness for District A-2. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District A-2
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District A-2 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
w
Below is a chart which includes the tax increment financing parcels included in District A-2. All of the parcels
included in District A-2 were listed in the original tax increment plan and are not modifications to District A-2.
It is not expected that additional parcels will be certified to Hennepin County to be included in District A-2:
Property
Address PID
Number HRA TIF
District No. County
Project Number Date of TIF
Cert. Request Date of
County Certification
7500 Bryant Ave. 33-028-24-41-0106 A-2 1258 11/06/92 07/08/93
7520 Bryant Ave. 33-028-24-41-0110 A-2 1258 06/15/93 07/08/93
6634 4th Ave. 27-028-24-41-0052 A-2 1258 02/09/93 07/08/93
6926 Chicago Ave. 26-028-24-33-0028 A-2 1267 07/25/95 3!7/96 and
6844 141h Ave. 26-028-24-43-0056 A-2 1267 03/18/96 07/12/96
7245 12th Ave. 35-028-24-13-0001 A-2 1260-1258e 05/25/94 07/12/94
7528 Bryant Ave. 33-028-24-41-0112 A-2 1260-1258e 07/15/93 07/12/94
7112 1st Ave. 34-028-24-12-0096 A-2 1260-1258e 10/07/93 07/12/94
6225 14th Ave. 26-028-24-12-0071 A-2 1260-1258e 07/15/93 07/12/94
6310 15th Ave. 26-028-24-12-0077 A-2 1260-1258e 08/23/93 07/12/94
7021 Nicollet Ave. 34-028-24-12-0023 A-2 1260-1258e 06/16/94 07/12/94
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-2 Page 1
Section G. Estimate of Costs
• The following is a clarification of the budget for public costs as original ly adopted. The HRA and City are
not increasing the budget for District A-2 bu t are being changed to meet new reporting requirements and
include all potential categories of costs.
Total including the
July 20, 1992 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $1,074,225 $800,000
Demolition/Site Clearance 105,000 105,000
Administration 5,000 40,000
Interest 239,225
Total Cost $1,184,225 $1,184,225
Section H. Estimated Amount of Obligated Funds.
It was anticipated that $500,000 of funds from the HRA's general fund/development account would be
available on a long-term basis for financing the net public costs. The $500,000 amount was the anticipated
net costs after land sale proceeds had been received by the HRA.
Section I. Sources of Revenue.
• Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
Total including the
July 20, 1992 February 23, 1998
Revenue Original Budget Modification
Tax Increments $493,850 $493,850
Interest Earnings 0 50,000
Land Sale 0 590,375
Other 0 50,000
Total $493,850 $1,184,225
•
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-2 Page 2
Modification to the Tax Increment Financing Plan for
Tax Increment Financing District B-2
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District B-2. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District B-2 ("District B-2") as originally
adopted by the City Council on July 20, 1992, and modified from time to time since that date., District B-2 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District B-2 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District B-2, and identification of
the parcels which have been certified in District B-2 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District B-2, increasing the total
amount of the budget for District B-2, nor increasing the total amount of indebtedness for District B-2. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District B-2
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District B-2 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
CJ
Below is a chart which includes the tax increment financing parcels included in District B-2. All of the parcels
included in District B-2 were listed in the original tax increment plan and are not modifications to District B-2.
It is not expected that additional parcels will be certified to Hennepin County to be included in District B-2:
Property PID HRA TIF County Date of TIF Date of
Address Number District No. Project Number Cert. Request County Certification
6641 Oliver Ave. 28-028-24-32-0045 B-2 1259 12/30/92 07/08/93
7124 Washburn Ave. 32-028-24-12-0073 B-2 1261-1259exp 10/05/93 07/12/94
6912 Oliver Ave. 28-028-24-33-0053 B-2 1261-1259exp 10/05/93 07/12/94
Section G. Estimate of Costs
The following is a clarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District B-2 but are being changed to meet new reporting requirements and
include all potential categories of costs.
Modification to the Tax Increment Financing Plan for Tax Increment Financing District B-2 Page I
Total including the
July 20, 1992 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $532,575 $412,575
Demolition/Site Clearance 55,000 55,000
Administration 5,000 25,000
Interest 100,000
Total Cost $592,575 $592,575
Section H. Estimated Amount of Obligated Funds.
It was anticipated that $500,000 of funds from the HRA's general fund/development account would be
available on a long-term basis for financing the net public costs. The $500,000 amount was the anticipated
net costs after land sale proceeds had been received by the HRA.
Section I. Sources of Revenue.
Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
Total including the
• July 20, 1992 February 23, 1998
Revenue Original Budget Modification
Tax Increments $279,500 $279,500
Interest Earnings _ 0 10,000
Land Sale 0 293,075
Other 0 10,000
Total $279,500 $592,575
C7-A
Modification to the Tax Increment Financing Plan for Tax Increment Financing District B-2 Page 2
Modification to the Tax Increment Financing Plan for
Tax Increment Financing District A-3
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District A-3. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District A-3 ("District A-3") as originally
adopted by the City Council on June 20, 1994, and modified from time to time since that date. District A-3
is a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District A-3 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District A-3, and identification of
the parcels which have been certified in District A-3 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District A-3, increasing the total
amount of the budget for District A-3, nor increasing the total amount of indebtedness for District A-3. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District A-3
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District A-3 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
. parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
•
Below is a chart which includes the tax increment financing parcels included in District A-3. All of the parcels
included in District A-3 were listed in the original tax increment plan and are not modifications to District A-3.
It is not expected that additional parcels will be certified to Hennepin County to be included in District A-3:
Property
Address PID
Number HRA TIF
District No. County
Project Number Date of TIF
Cert. Request Date of
County Certification
6625 Stevens Ave. 27-028-24-42-0095 A-3 1262 01/10/95 07/19/95
6500 14th Ave. 26-028-24-13-0132 A-3 1262 12/20/94 07/19/95
6828 Elliot Ave. 26-028-24-34-0135 A-3 1262 11/02/94 07/19/95
7525 Girard Ave. 33-028-24-42-0094 A-3 1262 11/21/94 07/19/95
7537 Girard Ave. 33-028-24-42-0091 A-3 1262 08/31/94 07/19/95
7416 4th Ave.subd: 34-028-24-41-0053 A-3 1262 09/30/94 07/19/95
7412-4th Ave. (Lot A) 34-028-24-41.0137 not certified
7416-4th Ave. (Lot B) 34-028-24-41-0138 09/30/94
6404 15th Ave. 26-028-24-13-0052 A-3 1262 11/21/94 07/19/95
6432 15th Ave. 26-028-24-13-0059 A-3 1268 04/12/96 07/12/96
7344 Bryant Ave. 33-028-24-14-0047 A-3 1270 08/27/96 06/30/97
Amends 1262 & 1268
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-3 Page I
Section G. Estimate of Costs
The following is a clarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District A-3 but are being changed to meet new reporting requirements and
include all potential categories of costs.
Total including the
June 20, 1994 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $1,204,050 $1,000,000
Demolition/Site Clearance 138,000 138,000
Administration 23,000 100,000
Interest 127,050
Total Cost $1,365,050 $1,365,050
Section H. Estimated Amount of Obligated Funds.
It was anticipated that $700,000 of funds from the HRA's general fund/development account would be
available on a long-term basis for financing the net public costs. The $700,000 amount was the anticipated
net costs after land sale proceeds had been received by the HRA.
Section I. Sources of Revenue.
Due to new reporting requirements of sources of revenue, th e original tax increment plan is being modified
to include all sources of funds, not only tax increments whic h are funding the majority of the public costs.
Total including the
June 20, 1994 February 23, 1998
Revenue Original Budget Modification
Tax Increments $1,379,400 $1,045,350
Interest Earnings 0 10,000
Land Sale 0 300,000
Other 0 10,000
Total $1,379,400 $1,365,350
•
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-3 Page 2
Modification to the Tax Increment Financing Plan for
Tax Increment Financinla District B-3
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District B-3. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District B-3 ("District B-3") as originally
adopted by the City Council on June 20, 1994, and modified from time to time since that date. District B-3 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District B-3 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District B-3, and identification of
the parcels which have been certified in District B-3 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District B-3, increasing the total
amount of the budget for District B-3, nor increasing the total amount of indebtedness for District B-3. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District B-3
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District B-3 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
Below is a chart which includes the tax increment financing parcels included in District B-3. All of the parcels
included in District B-3 were listed in the original tax increment plan and are not modifications to District B-3.
It is not expected that additional parcels will be certified to Hennepin County to be included in District B-3:
Property PID HRA TIF County Date of TIF Date of
Address Number District No. Project Number Cert. Request County Certification
6404 Humboldt Ave. 28-028-24-24-0002 B-3 1263 12/14/94 07/19/95
6821 Logan Ave. 28-028-27-34-0050 B-3 1263 11/15/94 07/19/95
6236 Pleasant Ave. 27-028-24-22.0056 B-3 1263 09/30/94 07/19/95
6645 Upton Ave. 29-028-24-42-0015 B-3 1266-1263ex 07/19/95 03/07/96
Section G. Estimate of Costs
The following is aclarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District B-3 but are being changed to meet new reporting requirements and
include all potential categories of costs.
Modification to the Tax Increment Financing Plan for Tax Increment Financing District B-3 Page I
Total including the
June 20, 1994 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $827,600 $693,600
Demolition/Site Clearance 84,000 84,000
Administration 16,000 50,000
Interest 100,000
Total Cost $927,600 $927,600
0
Section H. Estimated Amount of Obligated Funds.
It was anticipated that $700,000 of funds from the HRA's general fund/development account would be
available on a long-term basis for financing the net public costs. The $700,000 amount was the anticipated
net costs after land sale proceeds had been received by the HRA.
Section I. Sources of Revenue.
Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
June 20,1994
Revenue Original Budget
Tax Increments $979,875 $787,600
Interest Earnings 0 10,000
Land Sale 0 120,000
Other 0 10,000
Total $979,875 $927,600
•
Modification to the Tax Increment Financing Plan for Tax Increment Financing District B-3
Total including the
February 23, 1998
Modification
Page 2
Modification to the Tax Increment Financing Plan for
Tax Increment Financing District A-4
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District A-4. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District A-4 ("District A-4") as originally
adopted by the City Council on May 15, 1995, and modified from time to time since that date. District A-4 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District A-4 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District A-4, and identification of
the parcels which have been certified in District A-4 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District A-4, increasing the total
amount of the budget for District A-4, nor increasing the total amount of indebtedness for District A-4. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District A-4
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential list of properties to be included in District A-4 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
Below is a chart which includes the tax increment financing parcels included in District A-4. All of the parcels
included in District A-4 were listed in the original tax increment plan and are not modifications to District A-4.
It is not expected that additional parcels will be certified to Hennepin County to be included in District A-4:
Property
Address PID
Number HRA TIF
District No. County
Project Number . Date of TIF
Cert. Request Date of
County Certification
7216 1st Ave. 34-028-24-13-0094 A-4 1264 07/25/95 07/12/96
7415 3rd Ave. 34-028-24-41-0008 A-4 08/18/97 IN PROCESS
6812 13th Ave. 26-028-24-43-0022 A-4 1264 07/25/95 07/12/96
6820 Portland 27-028-24-44-0006 A-4 11/18/97 IN PROCESS
7429 Dupont Ave. 33-028-24-41-0076 A-4 1264 07/25/95 07/12/96
7025 Nicollet Ave. 34-028-24-12-0022 A-4 11107/97 IN PROCESS
7037 Oakland Ave. subd: 35-028-24-22-0042 A-4 1264 08/23/95 07/12/96
7033 Oakland 35-028-24-22-0125
7037 Oakland 35-028-24-22-0126
Section G. Estimate of Costs
The following is a clarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District A-4 but are being changed to meet new reporting requirements and
include all potential categories of costs.
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-4 Page I
Total including the
May 15, 1995 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $2,408,100 $2,054,100
Demolition/Site Clearance 276,000 276,000
Administration 46,000 100,000
Interest 300,000
Total Cost $2,730,100 $2,730,100
Section H. Estimated Amount of Obligated Funds.
It was-anticipated that $750,000 of funds from the HRH's general fund/development account would be
available on a long-term basis for financing the net public costs. The $750,000 amount was the anticipated
net costs after land sale proceeds had been received by the HRA.
Section I. Sources of Revenue.
Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
Total including the
May 15, 1995 February 23, 1998
Revenue Original Budget Modification
Tax Increments $2,740,373 $2,460,100
Interest Earnings 0 10,000
Land Sale 0 250,000
Other 0 10,000
Total $2,740,373 $2,730,100
Modification to the Tax Increment Financing Plan for Tax Increment Financing District A-4 Page 2
Modification to the
Tax Increment Financing Plan for
Tax Increment Financing District B-4
February 23, 1998
The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing
District B-4. The modification to the Tax Increment Financing Plan represents a continuation of the goals and
objectives set forth in the Redevelopment Plan for Redevelopment Project Area "A" ("Project Area A") and
the Tax Increment Financing Plan for Tax Increment Financing District B-4 ("District B-4") as originally
adopted by the City Council on May 15, 1995, and modified from time to time since that date. District B-4 is
a redevelopment tax increment financing district which provides funding sources for the Richfield Housing
and Redevelopment Authority (the "HRA") to acquire structurally substandard single family homes, demolish
the homes, and resell the lots for construction of a new homestead property. District B-4 is allowed to collect
tax increments from the new homes for up to 25 years. Generally, the substantive changes in the current
modification to the Tax Increment Financing Plan include the clarification of budgets to meet new formats for
financial reporting for tax increment, clarification of the indebtedness for District B-4, and identification of
the parcels which have been certified in District B-4 by address, parcel identification numbers, and Hennepin
County project number. This modification is not increasing the size of District B-4, increasing the total
amount of the budget for District B-41 nor increasing the total amount of indebtedness for District B-4. For
further information, a review of the Tax Increment Financing Plan for Tax Increment Financing District B-4
is recommended. They are available from the Richfield HRA.
Section D. Description of Property in the Tax Increment Financing District
Due to the nature of the Richfield Rediscovered program, the parcels which were included in the original tax
increment financing plan was a potential.list of properties to be included in District B-4 rather than a definitive
list of properties to be certified. Certification of properties was requested only when the HRA acquired the
parcel. Because the acquisition of parcels occurred over a multi-year period, Hennepin County certified the
individual parcels with separate county project numbers or as a modification/expansion to the original tax
increment plan.
Below is a chart which includes the tax increment financing parcels included in District B-4. All of the parcels
included in District B-4 were listed in the original tax increment plan and are not modifications to District B-4.
It is not expected that additional parcels will be certified to Hennepin County to be included in District B-4:
Property
Address PID
Number HRA TIF
District No. County
Project Number Date of TIF
Cert. Request Date of
County Certification
6320 Oliver Ave. 28-028-24-22-0122 B-4 1265 06/30/96 07/12/96
2819 W. 70-1/2 St. 32-028-24-12-0068 B-4 1265 07/12/96
6601 Logan Ave. 28-028-24-31-0061 B-4 1265 07/25/95 07/12/96
6845 Newton Ave. 28-028-24-33-0018 B-4 1265 through 07/12/96
2916 W. 71-1/2 St. 32-028-24-12-0072 B-4 1269 8/2/1996 and 06/30/97
6824 Queen Ave. 29-028-24-44-0024 B-4 01/06/98 IN PROCESS
6318 Knox Ave. 28-028-24-21-0107 B-4 1272 06/26/97 07/08/97
Amends 1265 & 1269
Section G. Estimate of Costs
The following is a clarification of the budget for public costs as originally adopted. The HRA and City are
not increasing the budget for District B-4 but are being changed to meet new reporting requirements and
Modification to the Tax Increment Financing Plan for Tax Increment Financing District B-4 Page 1
include all potential categories of costs.
Total including the
May 15, 1995 February 23, 1998
Cost Category Original Budget Modification
Property Acquisition $1,308,750 $1,033,750
Demolition/Site Clearance 150,000 150,000
Administration 25,000 100,000
Interest 200,000
Total Cost $1,483,750 $1,483,750
Section H. Estimated Amount of Obligated Funds.
It was anticipated that $750,000 of funds from the HRA's general fund/development account would be
available on a long-term basis for financing the net public costs. The $750,000 amount was the anticipated
net costs after land sale proceeds had been received by the HRA.
Section I. Sources of Revenue.
Due to new reporting requirements of sources of revenue, the original tax increment plan is being modified
to include all sources of funds, not only tax increments which are funding the majority of the public costs.
Total including the
May 15, 1995 February 23, 1998
Revenue Original Budget Modification
Tax Increments $2,052,994 $1,263,775
Interest Earnings 0 10,000
Land Sale 0 200,000
Other 0 10,000
Total $2,052,994 $1,483,775
Modification to the Tax Increment Financing Plan for Tax Increment Financing District B-4 Page 2
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 8
Agenda January 20, 1998
Issue Statement:
Adoption of a resolution authorizing the purchase of 7520 Colfax Avenue under the
Richfield Rediscovered Program.
Background:
The property at 7520 Colfax Avenue is a 936 square foot house with no basement
which is in need of significant updating. It has been well maintained for some time
however, all systems are in need of updating, including heating, plumbing and electrical
systems. Due to the increasing property values in Richfield, even the small, outdated
properties command a higher value. The property was appraised at $71,000 by BCL
Appraisals; however, $69,000 was agreed upon as a sale price. The owners are
elderly and have signed up for senior cooperative housing in another community.
Although their new residence will not be completed until fall 1998, the owners would like
the assurance of knowing the sale can proceed.
Recommended Motion:
Adopt the resolution authorizing:
1. The purchase of the property at 7520 Colfax Avenue for $69,000.
2. The HRA Chairperson and Executive Director to execute purchase agreements and
• other documents to effectuate the purchase.
Basis of Recommendation:
1. The property meets program requirements for acquisition.
2. Funding for Richfield Rediscovered acquisition is available.
3. The owners have voluntarily expressed interest in selling the property to the HRA.
4. The purchase has been negotiated below appraised values.
Alternative Recommendation:
Do not authorize acquisition.
Discussion/Decision Mode:
The purchase agreement is ready to be prepared in final form.
Respectfully submitted,
Jame D. Prosser
Executive Director
• JDP:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 7520 COLFAX AVENUE
FOR THE RICHFIELD REDISCOVERED PROGRAM
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to purchase certain real property pursuant to and in
furtherance of the Richfield Rediscovered Redevelopment Project (Project) heretofore
adopted by the City of Richfield (City) and the HRA, said real property being described
as Lot 6, Block 22, Irwin Shores Addition; and
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, the property meets all program requirements for acquisition; and
WHEREAS, the HRA has caused an appraisal of the subject property to be
made by a qualified, independent professional real estate appraiser and has negotiated
a purchase price; and
WHEREAS, funds have been provided by the HRA and are available for
. acquisition.
NOW, THEREFORE, BE IT RESOLVED, by the Richfield Housing and
Redevelopment Authority:
1. The purchase price for 7520 Colfax Avenue is approved at $69,000.
2. The Chairperson and Executive Director are authorized to execute a
Purchase Agreement or other documents to allow purchase for the
amount set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of January, 1998.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 7
Agenda January 20, 1997
Issue Statement:
Consider a status report on Richfield Floral and Nursery's proposed purchase of 817
East 66th Street.
Background:
In March 1997 the HRA selected Richfield Floral and Nursery as the purchaser of the
vacant parcel at East 66th Street and Elliot Avenue. At that time they planned to begin
construction in the summer of 1997. Then in September 1997, Richfield Floral and
Nursery came before the HRA to give a status report, request approval of some minor
modifications to their building plans and to ask for a reduction in the price of land which
had been set at $65,200. At that time, the HRA agreed to the plan changes but did not
support the reduction in land price. Richfield Floral and Nursery made these requests
because the bids for the project came in far higher than anticipated and they were
having difficulty securing financing. At that time they indicated that they would delay
construction until spring 1998 because the bidding climate may be more favorable.
Since then, staff has been told that further building refinements have been made in an
effort to reduce costs. They have also been exploring a variety of financing options with
• several banks and are again in the process of obtaining new bids. At this writing the
bids have not been received and therefore financing has not been secured. Pat Harris
of Richfield Floral and Nursery recently indicated that they should have new bids and
an answer to their financing question by the end of January.
Recommended Motion:
Direct staff to communicate to Richfield Floral and Nursery representatives the
necessity of presenting to the HRA in February the modified plans and a letter from a
lender indicating the availability of financing.
Basis of Recommendation:
1. In September the HRA directed staff to continue working with Richfield Floral and
Nursery with the understanding that the project would not begin until spring 1998.
2. Richfield Floral and Nursery has made considerable efforts to advance the project.
3. By the end of January, Richfield Floral and Nursery is expecting new bids on the
project and subsequently an answer on their financing.
Alternative Recommendation:
1. Direct staff to continue discussions with Richfield Floral and Nursery without
performance standards.
•
2. Request staff to identify other potential developers and report to the HRA on
interest.
Discussion/Decision Mode:
Over the past several months staff has received several inquiries about the availability
of the site. The most recent of these was from a local Montessori school currently
operating in St. Peter's Church, Richfield. They are losing their lease due to
school/class expansion and want to build their own building in Richfield. Given the level
of interest in the site, finding an appropriate and desirable alternate developer may not
be difficult.
Respectfully submitted,
Jam D. Prosser
Executive Director
JDP:cak
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter N0.6
Agenda January 20, 1998
Issue Statement:
Consideration of a proposal to continue the Community Apartment Program (CAP) for a
fifth year.
Background:
At the August HRA meeting, a status report on the CAP program was presented by
representatives of Project for Pride in Living and Affordable Suburban Housing for the
fourth year of the program. It was decided to contract with these two organizations for
an additional three months or until November 30, 1997. Staff would then visit the
marketplace and evaluate current consultants along with others which may be
appropriate to administer the program. Accordingly, staff and the president of the
Richfield Managers Apartment Association (RAMA) interviewed potential consultants:
• Affordable Suburban Housing and Project for Pride in Living
• Minnesota Multi-Housing Association
• Community Action for Suburban Housing
• NHD Property Management Company
• Julianne Manship Consulting
• • CommonBond Communities
• Edward McDonald, Consulting
The interview committee has recommended Julianne Manship; she is uniquely qualified
for this position. For approximately four years, she has been employed by the City of
West St. Paul as Neighborhood Development Director. Her job there has been to
establish and facilitate neighborhood associations . Prior to this position, she worked
as a crime prevention specialist for the West St. Paul Police Department. She is also a
consultant with Connections for Communities and assists community leaders in building
citizen participation. She would resign her position with West St. Paul if retained as .
CAP consultant. The experience of the past four years with CAP suggests that it would
now be appropriate to focus on relationship building between apartment residents and
residents of the single family community and as well as the broader community.
Attached is the contract which has been used previously. The work program is
attached as Exhibit A. The contract would be for 12 months, ending in January 1999.
The contract would be for $50,000 plus prior approved expenses, such as mileage,
postage, etc.
Recommended Motion:
Approve the execution of a contract with Julianne Manship for a fifth year of the CAP
program, beginning February 1, 1998.
Basis of Recommendation:
1. CAP is a program which benefits the community.
2. The program needs to focus clearly on relationship building.
3. Julianne Manship has several years of successful experience focusing on
relationship building.
4. HRA funds are available.
Alternative Recommendation:
1. Delay approval
2. Direct staff to interview other potential consultants.
Discussion/Decision Mode:
The program has been without personnel since November 30, 1997.
Respectfully submitted,
Jam D. Prosser
• Executive Director
JDP:cak
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HRA January 20, 1998
Attachment
PROFESSIONAL SERVICE AGREEMENT
COMMUNITY APARTMENT PROGRAM
THIS AGREEMENT made and entered into by and between the Housing and
Redevelopment Authority in and for the City of Richfield, STATE OF MINNESOTA,
hereinafter referred to as the HRA, and Julianne Manship Consulting, hereinafter
referred to as JMC.
WITNESSETH:
WHEREAS, the HRA wishes to purchase the services of JMC; and
WHEREAS, there are funds available for the purchase of these services.
NOW, THEREFORE, in consideration of the mutual undertakings and
agreements hereinafter set forth, the HRA and JMC agree as follows:
1. TERMS AND COST OF THE AGREEMENT
JMC agrees to furnish services to the HRA to pursue those outcomes
(objectives) within the identified time period as indicated on the attached "Exhibit
• A" dated January 9, 1998. The total cost of this Agreement shall not exceed
$50,000 plus prior approved expenses. All reports, memos, and other data
produced by JMC become the property of the HRA.
2. PAYMENT FOR SERVICES
Invoices for services performed by JMC may be submitted monthly. Payment for
services shall be made directly to JMC by check. Invoices shall be of sufficient
detail for the HRA to determine the activity and personnel for which payment is
being made. Payment shall be made within 30 days of receipt of an invoice by
the HRA.
3. INDEPENDENT CONTRACTOR
JMC shall select the means, method, and manner of performing the
services herein in consultation with the HRA. Nothing is intended or should be
construed in any manner as creating or establishing the relationship of
copartners between JMC and the HRA or as constituting JMC as the agent,
representative, or employee of the HRA for any purpose or in any manner
whatsoever. JMC is to be and shall remain an independent contractor with
respect to all services performed under this Agreement. JMC represents that it
• has or will secure at its own expense all personnel required in performing
services under this Agreement. Any and all personnel of JMC or other persons
while engaged in the performance of any work or services required by this
Agreement shall have no contractual relationship with the HRA, and shall not be
considered employees of the HRA. Any and all claims that may or might arise
under the Unemployment Compensation Act or the Worker's Compensation Act
of the State of Minnesota on behalf of said personnel, arising out of
employment or alleged employment, including, without limitation, claims of
discrimination against JMC, its officers, agents, contractors, or employees shall
in no way be the responsibility of the HRA. JMC shall defend, indemnify, and
hold the HRA, its officers, agents, and employees harmless from any and all
such claims irrespective of any determination of any pertinent tribunal, agency,
board, commission, or court. Such personnel or other persons shall neither
require nor be entitled to any compensation, rights, or benefits of any kind
whatsoever from the HRA, including, without limitation, tenure rights, medical
and hospital care, sick and vacation leave, Worker's Compensation,
Unemployment Insurance, disability, severance pay, and PERA.
4. NONDISCRIMINATION
The HRA operates in accordance with the City of Richfield's policies against
discrimination. No person shall be excluded from or denied the benefits of any
service performed or contemplated under the terms of this Agreement on the
grounds of race, color, creed, religion, age, sex, disability, marital status, public
assistance status, ex-offender status, or national origin; and no person who is
protected by applicable Federal or State laws against discrimination shall be
otherwise subjected to discrimination. JMC shall (1) furnish all information and
reports which may be required by the City's Affirmative Action Policy, and (2) it
shall comply with the City's Equal Employment Opportunity/Affirmative Action
Policies with regard to employment and contracting.
5. INDEMNITY AND INSURANCE
JMC agrees to defend, indemnify, and hold the HRA, its officers, and
employees harmless from any liability claims, damages, costs, judgments, or
expenses, including reasonable attorney fees, resulting directly or indirectly from
an act or omission (including without limitation professional errors or omissions)
of JMC, its agents, employees, or assignees in performance of the services
provided by this contract, and against all loss by reason of the failure of JMC to
fully perform in any respect, all obligations under this contract.
6. DATA PRIVACY
JMC agrees to abide by all applicable State and Federal laws and regulations
concerning the handling and disclosure of private and confidential information
concerning individuals and/or data including but not limited to information made
non-public by such laws or regulations.
7. RECORDS - AVAILABILITY
. JMC agrees that the HRA, the State Auditor, or any of their duly authorized
representatives at any time during normal business hours and as often as they
may reasonably deem necessary, shall have access to and the right to examine,
2
12. NOTICES
i
0
Any notice or demand which must be given or made by a party hereto under the
terms of this Agreement shall be in writing.
Notices shall be sent as follows:
To the HRA;
Bruce Palmborg
Community Development Director
City Hall
6700 Portland Avenue South
Richfield, MN 55423
To JMC;
Julianne Manship
Julianne Manship Consulting
2329 Legion Avenue
Lake Elmo, MN 55042
JMC having signed this contract, and the HRA having duly approved this
contract on January 20, 1998, and pursuant to such approval and the proper
HRA officials having signed this contract, the parties hereto agree to be bound
by the provisions herein set forth beginning February 1, 1998 for a period of
twelve months or until terminated as provided above.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
STATE OF MINNESOTA
By:
Executive Director
By:
Chairperson
JULIANNE MANSHIP CONSULTING
By:
Its
Attest
Attest
Attest
4
audit, excerpt, and transcribe any books, documents, papers, records, etc.,
which are pertinent to the accounting practices and procedures of JMC and
involve transactions relating to this Agreement. Records shall be retained for
. three years from date of final payment with respect to the project.
8. NON-ASSIGNMENT
JMC shall not assign, subcontract, transfer, or pledge this contract and/or the
services to be performed hereunder, whether in whole or in part, without the prior
written consent of the HRA.
9. MERGER AND MODIFICATION
a) It is understood and agreed that the entire Agreement between the parties is
contained herein and that Agreement supersedes all oral agreements and
negotiations between the parties relating to the subject matter hereof. All
items referred to in this Agreement are incorporated or attached and are
deemed to be part of this Agreement.
b) Any material alterations, variations, modifications, or waivers of provisions of
this Agreement shall only be valid when they have been reduced to writing as
an amendment to this Agreement signed by the parties hereto.
10. DEFAULT AND CANCELLATION
a) If JMC fails to perform any of the provisions of this Agreement or so fails to
administer the work as to endanger the performance of the Agreement, this
shall constitute a default. Unless the default is excused, the HRA, may upon
written notice, immediately cancel the Agreement in its entirety.
b) The HRH's failure to insist upon strict performance of any provision or to
exercise any rights under this Agreement shall not be deemed a
relinquishment or waiver of the same, unless consented to in writing. Such
consent shall not constitute a general waiver or relinquishment throughout the
entire term of the Agreement.
c) This Agreement may be canceled without cause by either party upon twenty
(20) days written notice.
11. CONTRACT ADMINISTRATION
In order to coordinate the services of JMC with the activities of the HRA so
as to accomplish the purpose of this contract, Bruce Palmborg shall manage this
contract on behalf of the HRA and serve as liaison between the HRA and JMC.
In addition, from time to time, meetings shall be held between JMC and the
a Community Apartment Program Team. JMC may also report directly to the
HRA Board of Commissioners.
3
Exhibit A
Page 1 of
0 January 9, 1998
TO: Bruce Paimborg, Community Development Director; City of Richfield
RE: Proposed approach and engagement agreements for the management and operation of Richfield's
Community Apartment Program
Our Mutual Objective
To build an inclusive sense of community in the City of Richfield.
Overview of the Approach
The City of Richfield has, initiated this engagement in order to foster changes in attitudes,
perceptions, and day-to-day working relationships between the communities of apartment and single
family residents. Surrounding these communities, are a complex mix of individuals with a stake in
this outcome. Meaningful change over time requires developing clarity and a personal sense of
ownership of those who are stakeholders in any objective.
As an independent contractor in support of this objective, I will be making contact with a
broad cross-section of the community. The Stakeholders' will be invited to participate in a
movement toward building a sense of community. The plan or "road map" to that outcome will be
developed by those who participate in the collaboration. My role will be to bring about the
facilitation and development of this plan. And, to provide leadership; encouraging an interactive
communication link which can guide the participants to the goal of the CAP team ("...encourage
strong, stable, vital apartment communities.") At the same time stakeholders' self-interests may
reveal additional objectives, which will be included as goals in their "community vision."
Approach methods to support the CAP objectives
1. To help apartment and non-apartment residents recognize the rich diversity that each has to offer to
community life.
Methods:
o Fostering a focus on the positive; highlighting similarities, celebrating
successes, inviting cross-participation.
' Identifiable stakeholder groups include: city staff, city council
members, HRA staff, school board members, businesses, single family home
owners, rental property owner/managers and residents, members of the faith
communities, civic groups.
Julianne Manship Consulting
2329 Legion Avenue, Lake Elmo, MN 55042 (612) 777-8331
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Page 2 of 3
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2. To initiate a program that establishes a "sense of community" within apartment communities and
links apartment communities to the single-family home community.
Methods:
0 Invite stakeholders to submit their program ideas through facilitated meetings.
The structure of the program is built from group participation. Success is
recognized as not just the work of one group, one person; everyone has a
part.
Specific activities:
- Discovering, recruiting interested stakeholders through interviews, focus
groups, media, etc.
-The City of Richfield is positioned in this as the generator of the invitation
and offers support as a partner to the stakeholders.
-Develop stronger links between stakeholders.
-Establishing media contacts to publicize the invitation to participate.
-Listening, encouraging and affirming the community building process of the
stakeholders.
3. To assist owners/managers and apartment residents in creating a partnership to build a safe, vital
apartment community.
Method:
0 a To work in close cwperation with the police department and crime prevention
specialists to:
-Assess how the Crime Free Multi-Housing program is advancing.
-Make recommendations with staff regarding any changes.
a Encourage other partnerships within rental properties (e.g.; family night,
social events, resident councils, etc.)
4. To assist owners and managers in utilizing the hest management practices available.
Method:
o Work with RAMA; establishing their needs.
-Invite success stories among RAMA and other city coalitions.
-Encourage leadership and independence among RAMA members within the
cooperative relationship with the City.
o Work with crime prevention staff; where do we see areas of possible
improvement?
-Affirm what is done well.
Julianne Manship Consulting
2329 Legion Avenue, lake Elmo, MN SSQ42 (612) 777-8331
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Page 3 of 3
•
Key Assumptlonc regarding client responsibilities
A successful contract expects a balance in responsibilities between the client (HRA1 and the
consultant. In support of that, the client agrees:
o The City staff and HRA will support the concept of a community vision. Such support may
include:
-Attendance at public meetings; e.g., focus groups, kick-off events, discussions, etc.,
when appropriate.
O To introduce and promote the consultant to the Richfield city staff and other stakeholders,
where necessary.
o To foster a positive point of view, and assist in dealing with any resistance which may arise in
pursuit of this contract's objectives.
O To form a review committee who will attend regularly scheduled project review and status
report meetings, chaired by the consultant. Materials provided for review will include, any
of.,
- Activities performed to date
- Stakeholders involved
- Comments from the community
- Insights gained
- Challenges or issues
Any required City response
- Recommendations
- Intended strategies, activities for next reporting period
o To allow the use of its facilities and supporting audio/visual equipment (when available).
o To cover (with prior approval) any expenses beyond the consulting fee, including:
-Printing, duplication, mailing, long distance telephone.
-Mileage incurred in performance of this contract, as measured from I.ake Elmo.
Time line
This contract has a duration of 12 months, and will be begin February 1, 1998; pending approval by
HRA prior to January 31, 1998.
Fee
Consultant Fee: $50,000, invoiced and payable in equal monthly installments, due in
30 days.
Expenses: At actual cost, with prior approval.
Julianne Mansho Consulting
2329 Legion Avenue, Lake Elmo, MN 55042 (612) 777-8331
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 5
Agenda January 20, 1998
10 Issue Statement:
Consideration of a status report and presentation of a new development concept for the
7600 block of Lyndale Avenue.
Background:
In August the HRA directed staff to work exclusively with the Main Street Partners to
refine their plan. Their plan was selected over two others because it:
• Appeared to work financially (with roughly 16 years of TIF).
• Involved local ownership.
• Most closely met the objectives of the Lyndale Gateway Study.
At that time it was reported that DataSource Hagen was no longer involved in the
project and that the developer was seeking other tenants for the upper floors of the
multi-story building proposed for the east side of Lyndale (the first floor was to be retail).
Other plan elements included one and two story retail/office buildings on the west side
of Lyndale and townhomes on the east side of Garfield and the west side of Aldrich.
In October the HRA directed staff to continue working with the group for three months
with a stipulation that, if at the end of that time a redevelopment agreement was not in
place the HRA could either provide additional time or direct staff to discontinue
discussions and seek other developers. A development agreement has not been
discussed because the developer has been unable to find tenants.
Recently Gary Tushie, project architect and spokesman for the group indicated to staff
that a new concept and has been developed and that professional developers, not the
local partnership would be involved. A copy of the new site plan is attached (elevation
drawings have not been prepared).
The new concept features the following components:
• A 23,000 sq. ft. single story retail building to be built by CSM.
• A 150 unit 4 story senior apartment by Twin Cities Christian Homes (TCCH).
• 27,000 sq. ft. of office space on the ground floor of the south half of the apartment
building.
• A 93 room Townplace by Marriott hotel to be built by CSM.
(There are no townhomes proposed in this concept.)
The apartments would be congregate and geared toward "older" seniors. TCCH would
like to keep 40% of the units affordable to people making 60% of the median household
income. (60% of median income is approximately $20,000.) The Townplace hotel is
Marriott's extended stay product. According to the developer this particular hotel does
• not need to be immediately adjacent to a freeway but only needs to be in close
proximity to a freeway interchange.
Senior apartments and a hotel are both departures from earlier plans and from the
Lyndale Gateway Study which has been the benchmark against which previous
proposals were measured. The Lyndale Gateway Study called for two story buildings
with neighborhood oriented retail on the first floor and office space on the second floor.
To date the market has not responded favorably to vertically integrated development as
envisioned in the Lyndale Gateway Study. Such developments require the right mix of
uses and the right developer. So far that mix has not presented itself. Staff still
believes such a mix could be found and would be desirable. However the amount of
time needed to find such a developer is unknown.
A preliminary analysis prepared by the City's financial consultant and based on data
provided by the developers indicates the proposed project is economically feasible.
Further, the proposed users are reportedly ready to proceed. Should the HRA direct
staff to further evaluate the proposal, the following points should be considered:
• Building design - this is an urban corridor and the buildings need to reflect that. The
idea behind the Lyndale Gateway Study was to have a unified, main street-like
development pattern. As such, off-the-shelf or "franchise" architecture should be
avoided. The buildings should have custom designed exteriors which relate to and
are complimentary of one another. The primary building materials should be brick or
a combination of brick and other appropriate materials. Vinyl and wood lap siding
are not appropriate materials for this location.
• Relationship to neighborhood - On the west side of Lyndale Avenue the plan calls
for a 25 ft. to 45 ft. wide landscaped buffer area between Aldrich Avenue and the
• parking lot. Access to the parking lot would be from 77th Street and Lyndale
Avenue only. As a result, traffic on Aldrich would actually decrease.
The plan for the east side of Lyndale Avenue has no such buffer. Moreover, access
to the apartment and office parking comes exclusively from Garfield Avenue. Traffic
volumes would increase dramatically. A traffic study may be warranted to determine
if this traffic pattern could function properly without adversely impact the existing
neighborhood.
• Financial - TCCH is a nonprofit developer. They take no development fees and they
own and manage their projects. Their goal is to keep rents as affordable as
possible and at the same time to provide a high quality living environment. To do
this they have, in other projects (Minnetonka and Shoreview), required TIF and
significant land write downs.
The initial financial analysis indicates that the project will work (with some level of
TIF assistance). However, until TCCH prepares a detailed proforma to determine
the cost of the project and the range of rents, it will not be known if the TIF
generated by the project will be sufficient.
• Ownership - CSM would develop and own the buildings on the west side of Lyndale
Avenue while TCCH would develop and own those of the east. There would no
longer be an element of local ownership. The area property owners who were
. involved in the Main Street partnership would sell their property to the developers
and would then assist the developers in their attempts to secure purchase
agreements with the other owners.
• Townhomes - The townhome component has been dropped because of a
questionable physical fit (too many and too large/tall a unit for the area) and
because they negatively impact the economics of the project. The reason they were
previously added to the east side of Garfield Avenue was because of the recognized
negative impact of the traffic from the then proposed office building. Given that this
proposal would have similar traffic impacts, it maybe appropriate to revisit the
thought of constructing townhomes along the east side of Garfield Avenue.
Recommended Motion:
Direct staff to further evaluate both the design and financial aspects of the current
proposal and to report back to the HRA in March.
Basis of Recommendation:
1. The Main Street Partners made a good faith attempt to secure tenants for the
previously approved plan but despite this effort have been unable do so.
2. The new concept plan, while not meeting all the goals of the Lyndale Gateway
Study meets many of them.
3. The findings of the 1996 Senior Housing Market Analysis support the construction
of this type of senior project.
4. The new concept has the support of the area property owners who were involved in
the Main Street partnership and involves two professional developers who are
reportedly prepared to move ahead.
5. The concept is in the preliminary stages and requires further evaluation of both the
financial and the design aspects.
Alternative Recommendation:
Direct staff to discontinue discussions with this group and to establish a set of
development criteria for the area and seek other developers.
Discussion/Decision Mode:
Representatives of the developers will be in attendance at the January 20, 1998 HRA
meeting to review and discuss the status of the proposal.
Respectfully submitted,
Jame . Prosser
Executive Director
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HOUSING AND REDEVELOPMENT AUTHORITY
Council Letter No. 4
Agenda January 20, 1998
Issue Statement:
Resolutions designating official depositories for the HRA of Richfield for 1998, including
the approval of collateral.
Background:
In accordance with Minnesota Statutes Section 475.66 and 118.005, the HRA of
Richfield must annually establish financial institutions which have pledged the
necessary collateral over and above the amount of federal insurance, as public
depositories. The Firstar Bank is pledging collateral in the amount of $1,625,000. This
collateral pledge means that the HRA's deposits up to this amount are secured with the
depository. In addition to this collateral pledge, HRA funds are protected by the Federal
Deposit Insurance Corporation in the amount of $100,000, making the total protection
afforded by this depository for HRA funds equal to $1,725,000. A resolution naming the
Firstar Bank as the 1998 official depository for the Richfield Housing and
Redevelopment Authority is attached to this letter.
In 1996, Firstar Bank has a community reinvestment rating of "satisfactory." Within
Richfield, Firstar Bank has supported remodeling programs and made various cash
• donations in support of City and HRA programs.
A resolution must be provided annually, designating certain savings and loan
associations and banks as official depositories for investment of certain HRA funds.
With approval of these official depositories, the HRA will be able to invest funds in these
institutions, not exceeding the federal insurance of $100,000. All designated
depositories have received a community reinvestment rating of "satisfactory" or better in
1996.
Finally, a resolution is also attached which designates certain financial institutions as
depositories for the investment of HRA Funds for 1998. These institutions, such as
investment brokerage firms offer government securities in the manner required by law.
These financial institutions include Richfield Bank and Trust Co., Piper Jaffray
I, Dain Bosworth, Norwest Investment Services, and Juran & Moody, Inc.
Recommended Motion:
It is recommended that the HRA adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in any of the
depositories beyond the level of insurance coverage of the pledged collateral.
U
Basis for Recommendation:
1. It is recommended that the HRA adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in any of the
depositories beyond the level of insurance coverage of the pledged collateral.
2. The HRA has worked with the institutions recommended in the past and has found
to have a good working relationship with these institutions.
Alternative Recommendation:
The HRA could solicit other financial institutions for official depositories, but past
relationships with the depositories recommended have proven satisfactory for the HRA.
Discussions/Decision Mode:
Action of the HRA is desirable at January 20, 1998, HRA meeting so that the HRA may
invest funds in the approved financial institutions for the year 1998 immediately.
Respectf y submitted,
James 14rosser
Executive Director
• JDP:cak
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HRA RESOLUTION NO.
RESOLUTION DESIGNATING THE FIRSTAR BANK A DEPOSITORY
• OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR
RICHFIELD FOR THE YEAR 1998 AND APPROVING COLLATERAL
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 475.66 and 118.005, the
Firstar Bank-Richfield be, and hereby is designated a depository of the funds of the
Housing and Redevelopment Authority, and subject to the following terms and
conditions:
The said depository shall not be required to give bonds or other securities for
such deposits provided that the total sum thereof shall not at any time exceed in any
depository the sums for which its deposits are insured under the Acts of Congress of
the United States relating to insurance of bank deposits; but not in case such deposits
in any such depository shall at any time exceed such insured sum, said depository shall
immediately furnish bonds or other security for such excess according to law, approved
by the Housing and Redevelopment of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all
time deposits, at or after the end of the period for which the same shall be deposited,
on demand.
• BE IT FURTHER RESOLVED, that there shall be maintained a general account
in which shall be deposited all monies. Checks on this account shall be signed by the
following officers or their facsimile signatures:
THOMAS E. HARMS, CHAIRMAN
JAMES D. PROSSER, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that there shall be a daily interest savings
account. All withdrawals from said account will be for transfers to the general checking
account.
BE IT FURTHER RESOLVED, that collateral in the amount of $1,625,000,
deposited for safekeeping at the Firstar Bank - Milwaukee, Wisconsin is hereby
approved.
Passed by the Housing and Redevelopment Authority of Richfield, Minnesota
this 20th day of January, 1998.
Thomas E. Harms, Chair
• ATTEST:
Michael Sandahl, Secretary
HRA RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1998
WHEREAS, the Housing and Redevelopment Authority of Richfield has money
which is available for investment; and
WHEREAS, different financial institutions offer different rates of return on
investments; and
WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase
U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the
manner required by law from the institution offering the highest rate to the Housing and
Redevelopment Authority providing greater flexibility in the investment program and
maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
financial institutions be designated as additional depositories for Housing and
Redevelopment Authority funds for 1998.
2. The following financial institutions designated as depositories for Housing and
Redevelopment Authority funds:
Richfield Bank and Trust Company
Dain Bosworth, Inc.
Norwest Investment Services
Piper, Jaffrey & Hopwood
Juran & Moody, Inc.
3. The Treasurer and Finance Manager are hereby authorized to deposit
Housing and Redevelopment Authority funds in any or all of the depositories herein
designated. Such deposits may be made and withdrawn from time to time by the
Treasurer or Finance Manager's his best judgment and the interests of the Housing and
Redevelopment Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the investment of
these funds.
Passed by the Housing and Redevelopment of Richfield, Minnesota this 20th day
of January, 1998.
Thomas E. Harms, Chair
ATTEST:
0
Michael Sandahl, Secretary
HRA RESOLUTION NO.
• RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN
ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT
OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1998
WHEREAS, pursuant to Minnesota Statutes, Section 475.66 and 118.005,
municipal funds may be deposited in any Savings and Loan Association which has its
deposits insured by the Federal Savings and Loan Insurance Corporation; and
WHEREAS, the amount of said deposits may not exceed the Federal Savings
and Loan Insurance Corporation insurance covering such deposits which insurance
amount is presently $100,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in
Savings and Loan Associations and Banks would provide greater flexibility in the
Housing and Redevelopment Authority's investment program and maximize interest
income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
. 1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 1998.
2. The following Savings and Loan Associations and Banks are hereby
designated as additional depositories for Housing and Redevelopment
Authority funds:
Norwest Bank Minnesota, NA
6445 Nicollet Avenue South
Richfield, Minnesota 55423
Richfield Bank & Trust Company
6625 Lyndale Avenue South
Richfield, Minnesota 55423
Twin City Federal Banking and Savings
3330 West 66th Street
Edina, Minnesota 55435
3. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investment of the
Housing and Redevelopment Authority funds and that such designation is not
• exclusive nor does it preclude the deposit of any Housing and
Redevelopment Authority funds in other officially designated depositories of a
Housing and Redevelopment Authority.
4. The Treasurer and Finance Manager are hereby authorized to deposit
Housing and Redevelopment Authority funds in any or all of the depositories
herein designated up to the amount of $100,000, or such other amount as
may be subsequently permitted by law, such deposits to be in the form of
demand accounts for Public Unit Savings Certificates purchased by the
Housing and Redevelopment Authority of Richfield, payable to the Housing
and Redevelopment Authority of Richfield on the signatures of the Treasurer
or Finance Manager.
Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this 20th
day of January, 1998.
Thomas E. Harms, Chair
ATTEST:
E
Michael Sandahl, Secretary
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 3
Agenda January 20, 1998
Issue Statement:
Designation of official newspaper for 1998.
Background:
The Richfield Sun-Current, published by Minnesota Sun Publications, has been the
City's and HRA's official newspaper for many years.
Attached is a copy of a letter from Minnesota Sun Publications requesting that they be
designated the official newspaper for the City of Richfield for 1998. The 1998 legal
advertising rate structure for legals is as follows:
1 Column Width
$ 1.24 per line for first insertion (1997 rate was $1.20)
$ .60 per line for- subsequent insertions (same as 1997 rate)
The City will submit legal notices to the Sun Newspaper via modem, therefore qualifying
for a 10% rate discount.
Recommended Motion:
Designate the Richfield Sun-Current as the official newspaper of the Richfield HRA for
the year 1998.
Basis for Recommendation:
• 1. The paper is delivered to nearly all residences in the City, thereby providing City-
wide coverage of legal notices to residents.
2. The paper has served well as the official newspaper for many years.
3. The paper has expressed a desire to continue to provide this service.
4. The cost for legal publications is reasonable.
Alternative Recommendation:
Not make a designation and request the City Clerk's office to check into using another
publication, such as the Minneapolis Star Tribune, however, this would be much more
costly.
Discussion/Decision Mode:
The HRA publishes legal notices on a frequent basis, there, this item has been placed
on the January 20, 1998 HRA agenda so that a designation can be made for 1998.
Respectfully submitted,
James Arosser
Executive Director
0 JDP:cak
December 15, 1997
MINNESOTA
UN City of Richfield
PUBLICATIONS Attention: Tom Ferber
Sun-Current Sun-Post
Sun-Sailor 6700 Portland Avenue South
Richfield, MN 55423
Dear Mr. Ferber:
The Sun-Current would like to be considered for designation as the legal
newspaper for the City of Richfield for the year 1998.
Communicating with the people of your community is the primary factor for a city
when selecting a legal publication. In a survey conducted this year, it was found
that 90% of our readers read the Sun-Current regularly. Combined with the highest
penetration of households and the source of local news for Richfield, we offer the
best vehicle to reach your community.
The rate structure for legals effective January 1, 1998 will be:
1 column width $ 1.24 per line for first insertion
$ .60 per line for subsequent insertions
Discounts are available depending on format sent.
Notarized affidavits on each of your publications will be provided with no additional
charge. The deadline for regular length notices is 2 p.m. the Wednesday prior to
publication. For notices that are six pages or more in length, the deadline is an extra
24 hours in advance.
Please notify us of your decision and we will send you details on deadlines,
discounts and transmission specifications. If you require more information to make
your decision, please contact me or Meridel Hedblom, our Legal Representative, at
896-4809.
We appreciate your considering the Sun-Current as the official newspaper for
Richfield in 1998. It has been a pleasure serving you and we looking forward to
working together in reaching your community in this coming year.
Sincerely,
is
Doug Dance
Publisher
'Source: Pulse Research, Inc. April 1997.
7831 East Bush Lake Road • Bloomington, MN 55439 • (612) 896-4700
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 2
Agenda January 20, 1998
Issue Statement:
Designation of Acting Executive Director of the Housing and Redevelopment Authority
for 1998.
Background:
On January 12, 1998 the City Council appointed the Director of Administrative Services
to serve as the Acting City Manager in the absence of the City Manager.
Since the City Manager also serves as the Executive Director of the HRA, it is
recommended that the Administrative Services Director, Steven Devich, be designated
by the HRA as the Acting Executive Director of the HRA to serve in that capacity during
the absence of the Executive Director.
Recommended Motion:
The HRA designate Steven L. Devich, Administrative Services Director, as the Acting
Executive Director of the HRA for 1998.
Basis of Recommendation:
1. Designation of an Acting Executive Director is a normal business action of the HRA
similar to the designation of depositories and the official newspaper.
• 2. The Administrative Services Director has been designated as the Acting Executive
Director in the past.
3. The Administrative Services Director serves as the Acting City Manager, filling other
similar responsibilities for the City Manager in the Manager's absence.
Alternative Recommendation:
1. Make no designation of Acting Executive Director.
2. Make the designation of Acting Executive Director to another individual or position.
Discussion/Decision Mode:
Designation of the Acting Executive Director is a matter that would normally be
considered at the first business meeting of each year.
Respectfully submitted,
James Prosser
Executive Director
0 JDP:cak
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No 1
Agenda January 20, 1998
Issue Statement:
Election of officers for the Housing and Redevelopment Authority for 1998.
Background:
The bylaws of the Richfield Housing and Redevelopment Authority provide that the
HRA hold an annual election in January of each year. The bylaws further provide that
the Chair, Vice Chair and Secretary of the HRA be elected at this meeting.
Officers for the years 1996 and 1997 are as follows:
1996
Thomas Harms, Chair
Joan Helmberger, Vice Chair
Vern Luettinger, Secretary
Recommended Motion:
Elect officers for the HRA for 1998.
1997
Thomas Harms, Chair
Joan Helmberger, Vice Chair
Michael Sandahl, Secretary
Basis of Recommendation:
The bylaws of the HRA require that such an election be held at the annual meeting in
January of each year.
Alternative Recommendation:
Do not hold the election. However, this.would be in contradiction to the HRA bylaws.
Discussion/Decision Mode:
The item has been scheduled for the January 20, 1998 HRA meeting in accordance
with the HRA bylaws.
Respectfully submitted,
James . Prosser
Executive Director
JDP:cak
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