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11-16-98 agendaCITY OF RICHFIELD MONDAY, NOVEMBER 16, 1998 SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY/ CITY COUNCIL MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7 P.M. AGENDA CALL TO ORDER 1. CONDUCT STUDY SESSION REGARDING "THE LAKES AT LYNDALE"; RICHFIELD LAKE AREA PLAN HRA LETTER NO. 71 ADJOURNMENT REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS IMMEDIATELY FOLLOWS SPECIAL MEETING AGENDA APPROVAL OF MINUTES OF REGULAR HRA MEETING OF OCTOBER 19, 1998 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF ANALYSIS OF CONCEPTS FOR PRIVATE REDEVELOPMENT OF LYNDALE AVENUE SOUTH HRA LETTER NO. 72 3. CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH RICHFIELD STATE AGENCY, INC.; URBAN VILLAGE 0 HRA LETTER NO. 73 4. CONSIDERATION OF RESOLUTION REGARDING APPROVAL OF MODIFICATION TO REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA; ESTABLISHMENT OF URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; AND ADOPTION OF URBAN VILLAGE TAX INCREMENT FINANCING PLAN RELATED THERETO HRA LETTER NO. 74 5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 6820 RUSSELL AVENUE TO THOMAS J. MAUER CONSTRUCTION, INC. FOR RESIDENTIAL DEVELOPMENT HRA LETTER NO. 75 • 6. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7529 HUMBOLDT AVENUE AND ADJACENT PARCEL UNDER RICHFIELD REDISCOVERED PROGRAM HRA LETTER NO. 76 7. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7133 LYNDALE AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM HRA LETTER NO. 77 8. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF CANDLEWOOD HOTEL ADDITION PLAT HRA LETTER NO. 78 9. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION ADOPTING 1999 HRA BUDGET AND CERTIFYING 1999 TAX LEVY HRA LETTER NO. 79 10. EXECUTIVE DIRECTOR REPORT 11. CLAIMS AND PAYROLL ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702. HOUSING AND REDEVELOPMENT AUTHORITY is HRA Letter No. 79 Agenda November 16, 1998 Issue Statement: Public hearing and adoption of the 1999 HRA proposed property tax levy and budget. Background: At the August 17, 1998 meeting, the HRA adopted a preliminary levy according to the Truth-in-Taxation law. That levy was then forwarded to the City Council and adopted with the City's preliminary levy. The Truth-in-Taxation law does not require any further action by the HRA, nor does it require a public hearing on the final tax levy and/or budget. The HRA levy will be included as part of the City's final levy document which will be considered at the City's Truth-in-Taxation hearing on December 7, 1998. However, a public hearing on the proposed HRA 1999 budget and tax levy has been scheduled for November 16, 1998 to provide for public input. At the conclusion of the hearing, the HRA should adopt a final budget and. tax levy for..1999 to be forwarded to the City Council. The HRA budget resolutions are included with the budget document and represent official action on those items by the HRA. • Recommended Motion: Adopt the resolution adopting a 1999 HRA budget and property tax levy for 1999. Basis of Recommendation: 1. The HRA approved the Proposed 1999 Budget and Proposed 1999 HRA General Fund tax levy at its August 17 meeting. 2. The HRA should now take official action to finalize the HRA budget and tax levy. 3. Notice of the public hearing was published in the Richfield Sun Current. Alternative Recommendation: 1. The HRA could select another meeting date before December 7, 1998 to consider these items. However, there would be little time to publish a timely notice. Discussion/Decision Mode: It is recommended that the HRA take action on the HRA budget and property tax levy on November 16, 1998. Respectfully submitted, 0 f James D. Prosser Executive Director JDP:cak HRA RESOLUTION NO. RESOLUTION ADOPTING 1999 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 1999 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Housing and Redevelopment Authority General Fund of Richfield for the year 1999 in the amount of $1,111,250 is hereby ratified. Section 2. The estimated gross revenue of the Housing and Redevelopment Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 1999, and as the same are more fully detailed in the Executive Director's official copy of the budget for the year 1999, in the amount of $800,530 are hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 1998, payable in 1999 for the following purposes: . Housing and Redevelopment Authority $185,000 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1998. Thomas E. Harms, Chair ATTEST: Mike Sandahl, Secretary LJ • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 78 Agenda November 16, 1998 Issue Statement: Authorization to execute the Candlewood Hotel Addition plat. Background: Two properties, the Lampert and Soo Line parcels, were purchased by the HRA and redivided into two new parcels for sale to Candlewood Hotel Company and a future restaurant use. The purchase agreement with Candlewood and the conditional use permit require Candlewood to replat the property. Because the HRA still owns the northern parcel, currently being marketed for a future restaurant, HRA signatures are required on the plat. Recommended Motion: Approve a resolution authorizing the Chair and Executive Director to execute the Candlewood Hotel Addition plat. Basis of Recommendation: 1. A plat is required by the Candlewood conditional use permit. . 2. The HRA owns the northern parcel. 3. The HRA must sign the plat for it to be recordable. Alternative Recommendation: 1. Delay authorization. 2. Refuse the authorization. Discussion/Decision Mode: The City Council will conduct a public hearing on the plat on November 23, 1998. Respectfully submitted, James' Prosser Executive Director JDP:cak n U HRA RESOLUTION NO. i RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING EXECUTION OF CANDLEWOOD HOTEL ADDITION PLAT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") has properly created and is administering its Redevelopment District (the "District") pursuant to Minn. Stat. Chapter 469 in an effort to encourage the development and redevelopment of certain designated areas within the City of Richfield; and WHEREAS, among the development activities proposed to be assisted by the Authority in the District involve the development of commercial facilities; and WHEREAS, a plat has been prepared which encompasses land owned by the Authority; and WHEREAS, the Richfield City Council has required that the land be replatted as a condition of development of the property; and WHEREAS, the plat is being reviewed for completeness and accuracy by the go parties to the plat. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: That the Executive Directory and Authority Chairperson are authorized to execute the plat at the appropriate time. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1998 Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary 0 s i i ! 14Lia? ii;l•?i? loll, •!! _?? ??s?s:?I !f A?I?::F! i loop igZ will " 'Ili =11i E- f"?1 g w • Bill nd 8 _ all 1 1.1 por I I I . ? ? 2 W a a x z Q =Avr 1 M&A. r Mw vs an ors >n w O _.m F?^1+j , r-•sh' !rc_..!4R??.•o.s'}? -- r- r : • .. W N r m i 1 r I ;? f. ------------ rat usew •am i • ?` =wwmmv" V --- I . I 8 °"„' Fr1 r 1 --r •Kr---- r • ;ibi - .r r all I ? s ? _ >b e ? I Y • • i a ?£ + ter ? ??? s. s mill l _ $. s{'? _ •± t a rsrr I ?tt l_ f ? •f• l:t- e: ! sa r- B ? $ar? ???i a ?a ? ? ?`- =? Z r? ? ?a?i a lp ? ? ? ! ;rlyyt _ ¢ z A a S? W O .a .s t >l=? a ?lal 1 : t I O = 1 1H O8? a sep 5 5 l€ s sil ?? a IONS l it'll" it! I • ? F_" l'e l- ? ?_ ? sse ss? ail = ssi- sai a =- s{ e t !s a t i 41 V C l?l=??-ts = l??=??1? i? EI ? a ? • lit li = ? a= illa r is • j !s 11s10 Ali psi i it k €! 1i a ±t is #tlsis al 1IMiil ?i a ap irks #! s.' a a r lrrs ss 1 • • z 0 F-4 N A A w 1.0 z A O O W a A z 1 i I I I I I I I I U3 9" x 1 !01 e# ?b 4 o? 1 - - --- ?N-?Lalr n?sas llw va ern r? -, ?/1 a - ?// rr - ?/1 35:0 3111 lM-? _ - ri•10f • .11.10.0 S • - fr•ir1 , Ob"M - - 3 = s It Oil ? = 1 11 8 I - b a 4m ! w _? ?•. ! 0 r ?I ? s I 1 n ` 8 .Z r N ,? = 8 F ? 1.11.r0A ¦ ? T .V.. w ? ( ' s HI at 19 urocl ? 1` ?-' ` Oil ? M u•a1 -- 1!i/ as•Oit Im A 3 ml Ism ---- i .J! WON 3611t.M.0 i 1 ` I 1 1 1 • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 77 Agenda November 16, 1998 Issue Statement: Adoption of a resolution authorizing the purchase of 7133 Lyndale Avenue under the Richfield Rediscovered Program. Background: The property at 7133 Lyndale Avenue has been identified for purchase under the Richfield Rediscovered Program. The 885 sq. ft. house has been abandoned for some time. Public Safety has had several calls from neighbors due to the exterior neglect. The interior has extensive water damage and has been occupied by birds and rodents. The house and attached garage are on a 100 foot by 128 foot lot. The property has been in foreclosure and is now available for sale by the mortgage company for $64,900. The property's estimated market value in 1998 was $85,000. Recommended Motion: Adopt the resolution authorizing: 1. The purchase of the property at 7133 Lyndale Avenue for $64,900. 2. The Executive Director and HRA Chairperson to execute Purchase Agreement 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 owner has voluntarily indicated an interest in selling the property to the HRA. 4. Purchase has been negotiated based on a reduction of the estimated market value. Alternative Recommendation: Do not authorize acquisition. Discussion/Decision Mode: The purchase agreement is ready to be prepared in final form. Respectfully submitted, Jam . . Prosser Executive Director JDP:cak HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7133 LYNDALE 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 follows: 7133 Lyndale Avenue: Lots 15 and 16, Block 8, Augsburg Park Addition 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 a negotiated purchase price with the owner based on a reduction in the estimated market value; and WHEREAS, funds have been provided by the HRA and are available for acquisition. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. 1. The purchase price of 7133 Lyndale Avenue is approved at $64,900. 2. That the Chairperson and Executive Director are authorized to execute Purchase Agreements and other documents to effectuate purchases for the amounts set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1998. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary 0 HOUSING AND REDEVELOPMENT AUTHORITY • HRA Letter No. 76 Agenda November 16, 1998 Issue Statement: Adoption of a resolution authorizing the purchase of 7529 Humboldt Avenue and an adjacent parcel under the Richfield Rediscovered Program. Background: Two parcels of land are available for purchase under the Richfield Rediscovered Program from a Richfield resident. The parcels, located at 7529 Humboldt Avenue, are adjacent to each other and are remnants from 1-35W construction several years ago. Together, the parcels' total square footage is 4,084 sq. ft., significantly less than the 6,700 required for a newly platted lot, or the 5,000 sq. ft. which is allowed under a grandfathering provision for existing sites. The proposed plan would be to convey each parcel to the homeowners immediately east of each parcel. The larger 3,489 sq. ft. parcel, having the street address of 7529 Humboldt Avenue, would be conveyed to the owner of 7528 Girard Avenue. This conveyance would be particularly useful since the owner of 7528 Girard Avenue does not have a garage, and does not have sufficient frontage for driveway access from Girard Avenue. The smaller 595 sq. ft. parcel, with no street address assigned to it, would be conveyed to the owner of 7532 Girard Avenue. The current owner is the HRA. The HRA approved sale of the Girard Avenue lot in October to a builder/buyer team. Conveyance of each parcel would enhance the site use for each of the Girard Avenue owners, and would relieve the current parcel owners of undevelopable land. • Recommended Motion: Adopt the resolution authorizing: 1. The purchase of the parcels at 7529 Humboldt Avenue for $3,371.00 2. The Executive Director and HRA Chairperson to execute a purchase agreement and other documents to effectuate the purchase. Basis of Recommendation: 1. Funding for Richfield Rediscovered acquisitions is available. 2. The owner has voluntarily indicated an interest in selling the property to the HRA. 3. Purchase has been negotiated based on appraised values. 4. Acquisition and proper conveyance of the parcels would enhance the land use in the neighborhood. Alternative Recommendation: Do not authorize acquisition. Discussion/Decision Mode: The Purchase Agreement is ready to be prepared in final form. Resp c ully submitted, Jam s D. Prosser Executive Director JDP:cak HRA RESOLUTION NO. i RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7529 HUMBOLDT 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 properties being described as follows: 7529 Humboldt Avenue: Lot 17, Block 18, Irwin Shores Addition Address unassigned: That part of Lot 16, lying northeasterly of highway right-of- way, Block 18, Irwin Shores; and WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the properties meet all program requirements for acquisition; and WHEREAS, the HRA has caused an appraisal of the subject properties to be made by a qualified, independent professional real estate appraiser and has negotiated a purchase price with the owners based on stated values; and WHEREAS, funds have been provided by the HRA and are available for acquisition. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. 1. The purchase price for 7529 Humboldt Avenue and the adjacent parcel is approved at $3,371.00 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and other documents to effectuate 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 16th day of November, 1998. Thomas E. Harms, Chair ATTEST: 0 Michael Sandahl, Secretary v i O i I I I Ir.. 72 I i . it i 15 to (59) (56) I3 . 88 ?3 w ? 4 •\ I ? ` (sa) ?• (57) (8C) ? , 132.93 132.93 (79) -------- ------ (68) 132.94 21 4 (78) (69) 132.95 132.95 ------------------ 20 --- o S ? (70) , t tp ? ` (T7) (TI) 132. 7 132.97 (76)75 HUR44OLD a ! 132.96 7528 a 17 ••,b? 0 (75) (73) 142 >• ? 9 , ; (74) 133 7532 OOC NO 46W658 79ORM 40 '1 IV ................ ---------------- ---------------- is ?0 (44) (40) ? 34. 39 ? 34. 39 14 11 (43). (41) 134-4 ?34 4 i2 13 .9 (42) t 1t 24 AI (81) (99) 23 .1 2 (98) , R (82) IL Al OLA •1 22 3 134.44 131.44 21 (97) ` R 4 (84) 134.45 ?34. 1 6 R 9 9 5) (9 ) (8 IN, 4 134.46 (95) (86) 1 47 134.47 AVE c9'4) (87) 134.48 134.48 17 (93) R (88) NAB 1 16 9 (92) (89) 134, 134.% 60 15 P 10 (91) (90) a. 100 , 4• t9•?' ?6• loo ----------- -----, ------ ----- 1 1 x,45 I R -------------------------- HOUSING AND REDEVELOPMENT AUTHORITY • HRA Letter No. 75 Agenda November 16, 1998 Issue Statement: Public hearing and authorization to sell 6820 Russell Avenue to Thomas J. Mauer Construction Inc. for residential development. Background: The HRA acquired the property at 6820 Russell Avenue under the Richfield Rediscovered Program. It is proposed that the HRA sell 6820 Russell Avenue to Thomas J. Mauer Construction, Inc. for the development of a new single family home in accordance with a development agreement. The new home will be a three bedroom, two bath home with a minimum value of $145,000. The buyer is currently a resident in the Urban Village redevelopment area. Recommended Motion: Following a public hearing, adopt the resolution authorizing the sale of 6820 Russell Avenue to Thomas J. Mauer Construction, Inc. Basis of Recommendation: 1. Thomas Mauer Construction, Inc. is building under the program for the first time. They have provided evidence of experience, capability and financial security. 2. The HRA acquired 6820 Russell Avenue for the Richfield Rediscovered Program. 3. The terms of the development agreement have been negotiated and are in conformance with program guidelines. 4. Notice of public hearing on sale of the property was published on November 4, 1998 in the Sun-Current. Alternative Recommendation: Do not proceed with the development agreement with the recommended builder and direct staff to find another buyer. Discussion/Decision Mode: Closing would occur in November, with construction starting soon afterwards. The site clearance work is completed. Respectfully submitted, Jam D. Prosser Executive Director JDP:cak U HRA RESOLUTION NO. • RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6820 RUSSELL AVENUE TO THOMAS J. MAUER CONSTRUCTION, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property being described as follows: Address Legal Description 6820 Russell Avenue Lot 6 and the South 1/2 of Lot 5, Block 3 Tingdale Bros. Lincoln Hills Third Addition WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchaser of the described property has been identified and a development agreement negotiated as follows: Performance Address Sale Price Securi Builder 6820 Russell Avenue $36,000 $36,000 Thomas J. Mauer Construction WHEREAS, a public hearing has been held after proper public notice. . NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield: A public hearing has been held and 6820 Russell Avenue is authorized to be sold for $36,000 to Thomas J. Mauer Construction, Inc. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sales to Thomas J. Mauer Construction, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1998. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary 9 d 3 C Q d H H 3 O N O I? 0 C HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 74 Agenda November 16, 1998 Issue Statement: Consideration of a resolution regarding approval of a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area; establishment of the Urban Village Tax Increment Financing District; and adoption of the Urban Village Tax Increment Financing Plan related thereto. Background: The Urban Village is a comprehensive redevelopment proposal for the southeast quadrant of 66th Street and Lyndale Avenue. This area has been identified for redevelopment since 1975. Since 1982, the blocks which include the Richfield Bank and Trust offices, 14 single family homes and a chiropractic office to the east have been designated in the Comprehensive Plan to become a commercial use. Some development, bank expansion, and the addition of a medical clinic has occurred over the referenced years. In 1997 and 1998, the Richfield Lake area, adjacent pending freeway construction, and the commercial and housing areas north of 68th Street and west of the Soo Line were studied and a plan developed to act as a framework to counteract commercial decline and provide additional housing choices during the next 10 to 15 years. The recently approved Gramercy project and the Urban Village proposal are the current developments that benefit from the Richfield Lake planning, incorporating elements of the plan into the proposals. An executive plan summary and the complete Urban Village TIF Plan documents are attached which propose comprehensive redevelopment. Richfield State Agency (RSA) proposes to develop 8,000 sq. ft. of commercial space that connects the existing Richfield Bank and Trust with the existing medical clinic. A 600-car parking ramp will be located south of the office expansion. New housing choices are added to the community with the development of 78 units of assisted living along 67th Street and approximately 132 rental townhomes along Pleasant Avenue. Of the 21 parcels in the new district, four are currently in the LHN Tax Increment District and will need to be decertified from the LHN and newly certified into the Urban Village Tax Increment District along with the other new parcels. Although these four parcels will be removed from the LHN Tax Increment District, sufficient tax increment will continue to be generated in the LHN district in order to meet its financial obligations (see attached maps). Mark Ruff of Ehlers & Associates, Inc. will be present at the HRA meeting and discuss the "but for..." conditions and other elements of the attached plan documents. While some of the land is already owned by RSA, the HRA has committed a considerable amount of time since May 1998 to working with the 14 privately owned single family homes in the district. The HRA has used the Mediation Center to determine needs and provide information. Seven homeowners and the chiropractic office have indicated an interest in redevelopment. Interest has related directly to the estimated level of compensation. Information about acquisition, including independent appraisal information by BCL Appraisals, has been requested by and shared with the seven owners that requested it. RSA is being responsive to the homeowners that want 0 or need to sell. Negotiations are underway and would include fair market value offers based on the appraisals and payment in lieu of relocation. The owner of 301 West 66th Street accepted the RSA offer and, in September 1998, RSA purchased the home. If • an agreement with homeowners cannot be reached, RSA anticipates requesting that the HRA acquire the property through quick-take condemnation as these parcels are critical components of the development. RSA has requested public assistance to help offset the cost of the parking ramp, the development of the public plaza spaces, transit spaces, right-of-way improvements and to cover the acquisition of the single family homes. Approval of the plan documents will make it possible for the HRA to consider a Contract for Private Development at the November meeting. The current assessor's market value for the properties in the district is $8,779,500. The estimated market value of the project increases by $21,388,000. The projected gross annual increment is $777,500. Appendix D of the Tax Increment Plan provides additional, detailed cash flow information. In addition to this cash flow, it is recommended that the following sections of Plans be reviewed: • approves a modification to the Richfield Redevelopment Project Area Redevelopment Plan; • establishes the Urban Village Tax Increment Financing District; • approves the Urban Village Tax Increment Financing Plan; and • requests the City Council to hold a public hearing and approve the modified Redevelopment Plan and new Tax Increment Financing Plan. Basis of Recommendation: 1. The Comprehensive Plan and the draft Richfield Lake Master Plan support a comprehensive redevelopment approach. 2. RSA is working to meet the needs of the single family homeowners affected and relocated by the proposed development. 3. The Richfield Comprehensive Plan identifies this area for commercial use and high density housing. On October 27, the Planning Commission made a finding that the Tax Increment Financing Plan was consistent with the Richfield Comprehensive Plan. 0 Recommended Motion: Adopt the attached resolution which: 4. The redevelopment and tax increment plans meet the requirements of state law • and established procedures within Richfield. 5. The approval of the plan documents is consistent with approval of a Contract for Private Development with RSA at the HRA meeting. Alternative Recommendation: 1. Do not approve the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area; establishment of the Urban Village Tax Increment Financing District; or adoption of the Urban Village Tax Increment Financing Plan. 2. Delay approval of the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area; establishment of the Urban Village Tax Increment Financing District; or adoption of the Urban Village Tax Increment Financing Plan. 3. Seek alternatives to the proposed project. Discussion/Decision Mode: The City Council's public hearing is scheduled for November 23, 1998. The required PUD zoning process is scheduled for December 1998 and January 1999. RSA is planning a spring 1999 construction start. Resp tfully submitted, s) D. Prosser Ex c?ytive Director JDP:cak HRA RESOLUTION NO. • RESOLUTION APPROVING THE MODIFIED REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING THE TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON; AND RECOMMENDING APPROVAL OF THE PLANS BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: Section 1. Recitals. 1.01. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) adopted a redevelopment plan (the "Redevelopment Plan") for the area of the City generally known as the Richfield Redevelopment Area on May 17, 1993. 1.02. The City Council of the City of Richfield (City) held a public hearing on the Redevelopment Plan for the Richfield Redevelopment Project Area and approved the Plan on June 14, 1993. 1.03. A proposal to create a new redevelopment Tax Increment Financing District, to be heretofore known as the Urban Village Tax Increment Financing district, has necessitated modification of the Redevelopment Plan for the Richfield Redevelopment Project Area and the adoption of a Tax Increment Financing Plan (the "TIF Plan") for the Urban Village Tax Increment Financing District. 1.04. Except for the modification stated herein, the HRA reaffirms its findings and conclusions as approved in the original Plan dated May 17, 1993. 1.05. The HRA has caused to be prepared modification to the Redevelopment Plan and the TIF Plan for the Urban Village Tax Increment Financing District, both of which are contained in a document entitled, "Tax Increment Financing Plan for the Establishment of the Urban Village Tax Increment Financing District, within the Richfield Redevelopment Project Area" dated November 4, 1998 and on file with the HRA. Section 2. HRA Approval. 2.01. The HRA finds that the objectives of the HRA in encouraging development and redevelopment within the Richfield Project Area will be advanced by adoption of the modified Redevelopment Plan and adoption of the TIF Plan for the Urban Village Tax Increment Financing District. 2.02. The modified Redevelopment Plan and the TIF Plan are hereby approved and adopted by the HRA. Section 3. Further Proceeding. 3.01. The Executive Director of the HRA is hereby authorized and directed to transmit copies of the Modified Redevelopment Plan and the TIF Plan to the School is Board of Independent School District No. 280, Intermediate School District No. 287, and the Board of Commissioners of Hennepin County for review and comment and to notify said public bodies of the public hearing to be held on the Plans by the City. 3.02. The Richfield Planning Commission has reviewed the modified Redevelopment Plan and the TIF Plan and made a finding of consistency of the Plans with the City's Comprehensive Plan. 3.03. The HRA requests the City to hold the public hearing on the modified Redevelopment Plan and the TIF Plan required by Minn. Stat. Section 469.028 and Minn. Stat. Section 469.175, Subd. 3, as soon hereafter as its practicable and recommends that the modified Redevelopment Plan and the TIF Plan be approved by the City. 3.04. The HRA also intends to request that the City from time to time consider various other actions necessary to the implementation of the Redevelopment Plan and the TIF Plan and pledges its cooperation with the City in achieving the objectives of the Plan. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of November, 1998. Thomas E. Harms, Chair ATTEST: 0 Michael Sandahl, Secretary Ehlers and Associates Tax Increment Financing District Overview , , City of Richfield- Urban Village Tax Increment Financing District Proposed action: Establishment of Urban Village Tax IncrementFinancing District and the adoption of a plan. Redevelopment Plan: Modify the Redevelopment Program for the Richfield Redevelopment Project Area to include the projects proposed within the Urban Village Tax Increment District. Type of TIF District: A Redevelopment District Parcel Number: See attached parcel list Location: See the attached map Proposed development: To facilitate the construction of approximately 500-650 car parking ramp, approximately 78 units of assisted living, approximately 132 rental town house units and up to 80,000 sf of commercial space in the City of Richfield. Estimated annual tax increment: $787,904 Proposed uses: The TIF Plan contains the following budget. Land acquisition ........................ $2,000,000 Site Improvements ....................... 2,000,000 Public Improvements - public road .......... 7,000,000 Public Utilities - parkway ................. 2,000,000 Housing Trust Fund ...................... 2,000,000 Interest ................................ 8,750,000 Administrative Costs (up to 10%) ........... 2,500,000 TOTAL ............................. $26,250,000 Form of financing: The project will be financed by a special assessment bond issue and a pay-as-you-go note. Maximum duration: The duration of Urban Village Tax Increment Financing District will be 25 years from the date of receipt of the first increment. The date of receipt of the first tax increment will be approximately 2001. Thus, it is estimated that Urban Village Tax Increment Financing District would terminate after 2026, or when the Plan is satisfied. Administrative fee: Up to 10% of annual increment, if costs are justified. Fiscal Disparities: The City of Richfield will choose to calculate fiscal disparities by clause b. TIF District Overview LGA/HACA penalty: The City elects to make the annual local contribution to the project to exempt itself from the LGA-HACA penalty. Contribution for an redevelopment district is 5% of annual tax increment. The contribution can be made annually or in larger contribution throughoutthe life ofthe district. 3 Year Activity Rule At least one ofthe following activities must take place in the District within (§469.176 Subd. la) 3 years from the date of certification: ? bonds have been issued ? the authority has acquired property within the district ? the authority has constructed or caused to be constructed public improvements within the district The estimated date whereby this activity must take place is November, 2001. 4 Year Activity Rule If after four years from the date of certification of the District one of the (§ 469.176 Subd 6) following activities must have been commenced on each parcel in the District: ? demolition ? rehabilitation ? renovation ? other site preparation (not including utility services such as sewer and water) If the activity has not been started by the approximately November, 2002, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must (§ 469.1763 Subd 3) be expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: ? the revenues are actually paid to a third partywith respect to the activity ? bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party, the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of (i) the five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under §. 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund ? binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation ? costs with respect to the - ;tivity are paid and the revenues are spent to reimburse a pay for payment of the costs, including interest on unreimbursed costs. Any obligations in the Tax Increment District made after approximately November, 2003, will not be eligible for repayment from tax increments. The previous summary contains an overview of the basic elements of the proposed Tax Increment Financing Plan for the Urban Village Tax Increment Financing District. More detailed information on each of these topics can be found in the complete TIF Plan. • Page 2 • TIF District Overview The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Urban Village Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that Urban Village Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). Urban Village Tax Increment Financing District consists of 21 parcels, with plans to redevelop the area for commercial purposes. At least 70 percent of the area in the parcels in Urban Village Tax Increment Financing District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in Urban Village Tax Increment Financing District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F of the TIF Plan). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely throughprivate investment within the reasonablyforeseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment 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 Urban Village Tax Increment Financing District permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonablyforeseeable future: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. In order to facilitate the project, the developer must buy single family homes at a price higher than rental town house project will support. Further, since this is an urban setting, no land is available for parking. Therefore, the developer must build approximately 600 car parking ramp. Due to this high cost of redevelopment, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter as justification that he would not have gone forward without tax increment assistance ( see attachment in AppendixG of the TIF Plan). The increased market value of the site that could reasonable be expected to occur without the use of tar increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of constructing site improvements, a public ramp and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made redevelopmentinfeasible withouttax increment assistance. Therefore, the City reasonablydetermines that no other redevelopment of any kind is anticipated on this site without substantially similar assistance being pro, "ded to the development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of Urban Village Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in Urban Village Tax Increment Financing District,the total increased market value would be up to 52 1.828.175. The present value of tax increments from Urban Village Tax Increment Financing District is estimated to be $8,579,438. It is the Council's finding that no development with a market 0 Page 3 TIF District Overview value of greater than $4,469,236 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, public improvements, site improvements and public utilities in the general area of the Urban Village Tax Increment Financing District (see Cashflow in Appendix D of the TIF Plan). 3. Finding that the Tax Increment Financing Plan for Urban Village Tax Increment FinancingDistrict conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on October 27, 1998. The Planning Commission found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Urban Village Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. The project to be assisted by Urban Village Tax Increment Financing District 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. • • Page 4 • T1F District Overview PARCEL LIST OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND TAX THE URBAN VILLAGE INCREMENT FINANCING DISTRICT r? 49 Parcel Numbers Address 27-028-24-32-0125 6645 Harriet Avenue South 27-028-24-32-0123 6625 Lyndale Avenue South 27-028-24-32-0124 407 661 Street West 27-028-24-32-0126 6701 Lyndale Avenue South 27-028-24-32-0062 6709 Lyndale Avenue South 27-028-24-32-0045 6700 Garfield Avenue South 27-028-24-32-0011 301 600 Street West 27-028-24-32-0012 6614 Pleasant Avenue 27-028-24-32-0013 6620 Pleasant Avenue 27-028-24-32-0014 6621 Grand Avenue South 27-028-24-32-0015 6615 Grand Avenue South 27-028-24-32-0016 6607 Grand Avenue South 27-028-24-32-0017 6601 Grand Avenue South 27-028-24-32-0018 307 661 Street West 27-028-24-32-0028 6626 Pleasant Avenue 27-028-24-32-0029 6630 Pleasant Avenue 27-028-24-32-0030 6640 Pleasant Avenue 27-028-24-32-0031 6644 Pleasant Avenue 27-028-24-32-0032 6645 Grand Avenue South 27-028-24-32-0033 6635 Grand Avenue South 27-028-24-32-0034 6627 Grand Avenue South Page 5 • • TIF District Overview MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND TAX THE URBAN VILLAGE INCREMENT FINANCING DISTRICT Page 6 t t w B a 9 w V i s O C3 QLLI U Z W g J 5 cm mcwIs CHO JSIL mm HIlI Hut HILL HI9I RM Hot 1=== HUI HID, MIM o o 3AVLNd11IDd 3 ?? 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N! ??anrs?c IF; LVL OL §i i Draft as of November 4, 1998 Draft for HRA Approval MODIFIATION TO THE REDEVELOPMENT PROGRAM for the THE RICHFIELD REDEVELOPMENT PROJECT AREA and the TAX INCREMENT FINANCING PLAN for the establishment of URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT (a redevelopment district) J RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD HENNEPIN COUNTY STATE OF MINNESOTA Public Hearing: November 23, 1998 Adopted: Prepared by: r'_1 LA EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville, Minnesota 55113-1105 Phone: (651) 697-8500 Fax: (651) 697-8555 E-mail: info@ehlers-inc.com Web Site: www.ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) SECTION I - MODIFI CATIONO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA .......................................... . 1-1 Foreword ...... .......................................................... .1-1 Subsection B. 'Statement of Public Purpose .................................... . 1-1 Subsection F. Boundaries of the Richfield Redevelopment Project Area ............. . 1-1 Sub?ctionG. Parcels in Acquisition ......................................... . 1-1 :Subsection J. Development Activities in the Richfield Project Area ................ . 1-1 '' - SB CTION II TAX IN CREMENT FINANCING PLAN FOR -17HE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ................ . 2-1 Subsection 2-1. Foreword ................................................... . 2-1 Subsection 2-2. Statutory Authority ............................................ . 2-1 Subsection 2-3. Statement of Objectives ........................................ . 2-1 Subsection 2-4. Redevelopment Plan Overview .................................. . 2-1 Subsection 2-5. Legal Description of Property in Urban Village TIF District ........... . 2-2 Subsection 2-6. Classification of Urban Village Tax Increment Financing District ....... . 2-2 Subsection 2-7. Original Tax Capacity and Tax Rate .............................. . 2-3 Subsection 2-8. Estimated Captured Net Tax Capacity Value/Increment ................ . 2-4 Subsection 2-9. Property To Be Acquired ....................................... . 2-4 Subsection 2-10. Uses of Funds ................................................ . 2-5 Subsection 2-11. Sources of Revenue/Bonded Indebtedness ......................... . 2-5 Subsection 2-12. Definition of Tax Increment Revenues ............................ . 2-6 Subsection 2-13. Duration of Urban Village Tax Increment Financing District ........... . 2-6 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions ...................... . 2-7 Subsection 2-15. Modifications to Urban Village Tax Increment Financing District ....... . 2-7 Subsection 2-16. Administrative Expenses ....................................... . 2-8 Subsection 2-17. Limitation of Increment ........................................ . 2-9 Subsection 2-18. Use of Tax Increment .......................................... 2-10 Subsection 2-19. Notification of Prior Planned Improvements ....................... 2-10 Subsection 2-20. Excess Tax Increments ......................................... 2-11 Subsection 2-21. Requirements for Agreements with the Developer ................... 2-11 Subsection 2-22. Assessment Agreements ....................................... 2-11 Subsection 2-23. Administration of Urban Village Tax Increment Financing District ...... 2-12 Subsection 2-24. Financial Reporting Requirements ............................... 2-12 Subsection 2-25. Municipal Approval and Public Purpose ........................... 2-14 Subsection 2-26. Fiscal Disparities Election ....... ............................. 2-15 Subsection 2-27. Other Limitations on the Use of Tax Increment ..................... 2-16 Subsection 2-28. State Tax Increment Financing Aid ............................... 2-17 Subsection 2-29. County Road Costs ............................................ 2-18 Subsection 2-30. Economic Development and Job Creation .......................... 2-18 Subsection 2-31. Summary ................................................... 2-18 APPENDIX A - PROJECT DESCRIPTION ............................................. A-1 APPENDIX B - BOUNDARY' MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT IC I AREA AND U1BAN VILLAGE TAX INCREMENT FINANCING DISTRICT .......... B-1 APPENDIX C - LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN URBAN V I LLAOE TAX INCREMENT FINANCING DISTRICT ..................... C-1 APPENDTX D - ESTIMATED CASH FLOW FOR URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ...................................................... D-1 APPENDIX E - MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) ...... E-1 APPENDIX F- REDEVELOPMENT QUALIFICATIONS FOR URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ........................................... F-I APPENDIX G - BUT/FOR SUPPORTING DOCUMENTATION ........................... G-1 • 0 • SECTION I MODIFICATION tO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA Foreword The following teat represents a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. Ttiissniodification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area. Generally, the substantive changes include modifying the Redevelopment Plan for the Richfield Redevelopment Project Area to establish the Urban Village Tax Increment Financing District. For:further information, a review of the Redevelopment Plan for the Richfield Redevelopment Project Area, adopted June 14, 1993, is recommended. It is available in the Community Development Department at the City of Richfield. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Richfield Redevelopment Project Area. Subsection B. Statement of Public Purpose See also the State of Public purpose found in Section B of the Redevelopment Plan for the Richfield Redevelopment Project Area, dated June 14, 1993. Subsection F. Boundaries of the Richfield Redevelopment Project Area The boundary for the Richfield Redevelopment Project Area is not being modified. See Appendix B of the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District for.a map of the Richfield Redevelopment Project Area and the District. Subsection G. Parcels in Acquisition The HRA may acquire the parcels in the Tax Increment FinancingPlan for the Urban Village Tax Increment Financing District. However, it is anticipated that the developers will be responsible for acquisition. Subsection J. Development Activities in the Richfield Project Area The Redevelopment Plan for the Richfield Redevelopment Project Area is hereby modified to include redevelopment and development activities to facilitate the construction of the following projects: a. Parking facility b. Assisted living c. Rental townhomes d. Commercial space e. Public facilities f. Public utilities g. Public roadways and sidewalks • City of Richfield Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area 1-1 SECTIONH • TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT Subsection 2-1. ForeN ord - The City of Richfield ("City'% the Richfield Housing and Redevelopment Authority (the "HRA"), staff and consultants have prepared the following information to expedite the establishment of the Urban Village Tax Increment Financing District, a redevelopment tax increment financing district, located in the Richfield Redevelopment Project Area. Subsectiou 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 Urban Village Tax Increment Financing District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. Subsection 2-3. Statement of Objectives Urban Village Tax Increment Financing District currently consists of 21 parcels of land and adjacent and internal rights-of-way. Urban Village Tax Increment Financing District is created to facilitate construction of approximately 500-650 car parking ramp, approximately 78 units of assisted living, approximately 132 rental town house units and up to 80,000 sf of commercial space in the City of Richfield. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. 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 Urban Village Tax Increment Financing District and the Richfield Redevelopment Project Area. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired - Selected property located within Urban Village Tax Increment Financing District may be acquired by the City or HRA and is further described in this Plan. 2. Relocation - Complete relocation services are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the • necessary legal requirements, the City or HRA may sell to a developer selected City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-1 properties that they may acquire within Urban Village Tax Increment Financing is District or may lease land or facilities to a developer. 4. The City or HRA may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public streets work within Urban `tillage Tax Increment Financing District. Subsection 2-5. Legal Description of Property in Urban Village Tax Increment Financing District Urban Village Tax Increment Financing District encompasses all property and adjacent rights-of-way identified by the 21 listed below. Please see the map in Appendix B for further information on the location of Urban Village Tax Increment Financing. District. Parcel Numbers 27-028-24-32-0125 27-028-24-32-0123 27-028-24-32-0124 27-028-24-32-0126 27-028-24-32-0062 27-028-24-32-0045 27-028-24-32-0011 27-028-24-32-0012 27-028-24-32-0013 27-028-24-32-0014 27-028-24-32-0015 27-028-24-32-0016 27-028-24-32-0017 27-028-24-32-0018 27-028-24-32-0028 27-028-24-32-0029 27-028-24-32-0030 27-028-24-32-0031 27-028-24-32-0032 27-028-24-32-0033 27-028-24-32-0034 Address 6645 Harriet Avenue South 6625 Lyndale Avenue South 407 60 Street West 6701 Lyndale Avenue South 6709 Lyndale Avenue South 6700 Garfield Avenue South 30166' Street West 6614 Pleasant Avenue 6620 Pleasant Avenue 6621 Grand Avenue South 6615 Grand Avenue South 6607 Grand Avenue South 6601 Grand Avenue South 307 661' Street West 6626 Pleasant Avenue 6630 Pleasant Avenue 6640 Pleasant Avenue 6644 Pleasant Avenue 6645 Grand Avenue South 6635 Grand Avenue South 6627 Grand Avenue South Subsection 2-6. Classification of Urban Village Tax Increment Financing District The City and HRA, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.179, as Amended, inclusive, finds that Urban Village Tax Increment Financing District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one of the following conditions, reasonably distributed throughout the district, exists: . (1) parcels consisting of 70 percent of the area in the district are occupied by City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-2 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 in fi-equomiy 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 Y structural elements oracombinationofdeficiencies inessential utilities andfacilities, lightand 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 juste 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 anew structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost ofplumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the 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: ¦ Urban Village Tax Increment Financing District is a redevelopment district consisting of 21 parcels. ¦ An inventory of the parcels shows that at least 70 percent of the parcels in Urban Village Tax Increment Financing District are occupied as defined in the TIF Act. An inspection of the buildings located within Urban Village Tax Increment Financing District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix F) 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 Urban Village Tax Increment Financing District is based on the market values placed on the property by the assessor in 1998 for taxes payable 1999. Pursuant to M.S., Section 469.177, 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: 11 City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-3 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. chan-ei rn connection with previously issued building permits. In any year in,?N hieh the current Net Tax Capacity value of Urban Village Tax Increment Financing District declines below the ONTC, no value will be captured and no tax increment will be payable to the City or HRA. The original local tax rate for Urban Village Tax Increment Financing District will be the local tax rate for taxes payable 1999. The Original Tax Capacity and the Original Local Tax Rate for Urban Village Tax Increment Financing District appear in the table below. Original Tax Capacity Value $271,556 Percent Retained by City 100% Original Local Tax Rate 1.38585 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 Urban Village Tax Increment Financing District, within the Richfield Redevelopment Project Area, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The City and HRA request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 1999. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capacity upon Completion of Project PC) 840,091 Original Estimated Net Tax Capacity (ONTC) 271.556 Estimated Captured Tax Capacity (CTC) 568,535 Estimated Annual Tax Increment (CTC x Local Tax Rate) $787,90,'- Subsection 2-9. Property To Be Acquired The City or HRA may acquire any parcel within Urban Village Tax Increment Financing District including interior and adjacent street rights of way. 1. Any properties identified for acquisition will be acquired by the City or HRA only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public is streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District -24 development to accomplish the uses and objectives set forth in this plan. 0 - 2. The following are conditions underwhich 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 unJer consideration for Urban Village Tax Increment Financing District is a proposal to facilitate construction of approximately 500 to 650 car parking ramp, approximately 78 units of assisted living, approximately 132 rental town house units and up to 80,000 sf of commercial space. 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 Urban Village Tax Increment Financing District. To facilitate the establishment and development or redevelopment of Urban Village Tax Increment Financing District, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Urban Village Tax Increment Financing District is outlined in the following table. Uses of Funds Total Land Acquisition $2,000,000 Site Improvements 2,000,000 Public Improvements - public road 7,000,000 Public Utilities - parkway 2,000,000 Trust Fund 2,000,000 Interest 8,750,000 Administrative Costs (up to 10%) 2,500,000 TOTAL $26,250,000 Estimated costs associated with Urban Village Tax Increment Financing District are subjectto change among categories without a modification to this Plan. 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 Urban Village Tax Increment Financing District will be spent on activities related to development or redevelopment outside of Urban Village Tax Increment Financing District but within the boundaries of the Richfield Redevelopment Project Area, (including administrative costs, which are considered to be spent outside of Urban Village Tax. Increment Financing District) subject to the limitations as described in this Plan. Subsection 2-11. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, public utilities and site improvement costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City or HRA reserves the right to use other sources of revenue legally applicable to the Modification to the City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-5 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 will be financed by a special assessment bond issue and a pay-as-you-go note. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed without a modification to the Plan pursuant to applicable statutory requirements. This provision does not obligate the City or HRA to incur debt. The City or HRA will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City or HRA ma} also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or HRA or to reimburse the developer on a "pay-as-you-go" basis for eligible activities paid for by the developer. The estimated sourcesoffunds for Urban Village Tax Increment Financing District are contained in the table below. Sources of Funds Total Tax Increment Local Contribution $25,000,000 1,250,000 TOTAL $26,250,000 0 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 Urban Village Tax Increment Financing District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of Urban Village Tax Increment Financing District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of Urban Village Tax Increment Financing District will be 25 years from the date of receipt of the first increment by the City or HRA. The date of receipt by the City of Richfield of the first tax increment will be approximately 2001. Thus, it is estimated that Urban Village Tax Increment Financing District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2026, or when the Plan is satisfied. The City or HRA does reserve the right to decertify Urban Village Tax Increment Financing District prior to the legally required date. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-6 0 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 Urban Village Tax Increment Financing District. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding, the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred without the assistance of the Citypor HRA, the following estimated impact of Urban Village Tax Increment Financing District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 1997/1998 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Protect Completion to Enti Total Hennepin County 936,486,071 568,535 0.0607% I.S.D. No. 280 26,436,495 568,535 2.1506% City of Richfield 17,976,447 568,535 3.1627% EWPACT ON TAX RATES 1997/1998 Percent Potential Extension Rates of Total CTC Taxes Hennepin County 0.383860 27.70% 568,535 218,238 I.S.D. No. 280 0.643340 46.42% 568,535 365,761 City of Richfield 0.271250 19.57% 568,535 154,215 Other 0.087400 6.31% 568.535 49,690 Total 1.385850 100.00% 787,904 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1997/Pay 1998 rate. The total net capacity for the entities listed above are based on Pay 1998 figures. Urban Village Tax Increment Financing District will be certified under the actual 1998/1999 rates, which were unavailable at the time this Plan was prepared. Subsection 2-15. Modifications to Urban Village Tax Increment Financing District In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargem%rit of the geographic area of the Richfield Redevelopment Project Area or Urban Village Tax Increment Financing District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determinationwas not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City or HRA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City or HRA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-7 of the original plan. The geographic area of UrbariVillage Tax Increment Financing District may be reduced, but shall not be enlarged after five years folio, in&`the date of certification of the original net tax capacity by the county auditor. If a redevelopment distinct is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria ofM.S., Section 469.174, Subd 10, paragraph (a), clauses (1) to (5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the Richfield Redevelopment Project Area or Urban Village Tax Increment Financing District and (2) (A) the current net tax capacity of the parcel(s) eliminated from Urban Vil I age Tax Increment Financing District equals or exceeds the net tax capacity ofthose parcel(s) in Urban V I Ila,,e Tax Increment Financing District's original net tax capacity or (B) the City agrees that, nom ith standing M.S., Section 469.177, Subd. ],the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from Urban Village Tax Increment FinancingDistrict. The City or HRA must notify the County Auditor of any modification that reduces or enlarges the geographic area of Urban Village Tax Increment Financing District or the Richfield Redevelopment Project Area. Modifications to Urban Village Tax Increment Financing District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 2-16. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the City or HRA, other than: 1. amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineeringservices,directly connected with the physical development of the real property in the district; 2. relocation benefits paid to or services provided for persons residing or businesses located in the district; or 3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment maybe used to pay any authorized and documented administrative expenses for Urban Village Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Richfield Redevelopment Project Area, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with Urban Viiage Tax Increment Financing District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the City or HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-8 Subsection 2-17. Limitation of increment Pursuant to M.S., Section 469.176, Subd. 1(a), no tax increment shall be paid to the City or HRA for Urban Village Tax Increment Financing District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in Urban Village Tax Increment Financing District by the County Auditor unless within the three (3) year period: (a) bonds have been issued pursuant to M.S., Section 469.178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to M.S., Sections 4f 9.152 to 469.165, or (h) the City or HRA has acquired property within Urban Village Tax Increment Financing District, or (c) the City or HRA has constructed or caused to be constructed public improvements within Urban Village Tax Increment Financing District. The bonds must be issued, or the City or HRA must acquire property or construct or cause public improvements to be constructed by approximately November, 2001. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation ofproperty or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancing plan, the authority shall certify to the county auditor that the activity has commerced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision... For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or HRA or a property owner must improve parcels within Urban Village Tax Increment Financing District by approximately November, 2002. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-9 Subsection 2-18. Use of Tax Increment The City or HRA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in Urban V i I lage Tax Increment Financing District for the following purposes: 1. to pad the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay public redevelopment costs of the Richfield Redevelopment Project area pursuant to the M.S., Sections 469.001 to 469.047; 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; to pay principal and interest on any loans, advances or other payments made to the City or HRA or for the benefit of the Richfield Redevelopment Project Area by the developer; 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and interest on tax increment bonds or bonds issued pursuant to the Plan or pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, subd. 4. Tax increments generated in Urban Village Tax Increment Financing District will be paid by Hennepin County to the City of Richfield for the Tax Increment Fund of said Urban Village Tax Increment Financing District. The City or HRA will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City or HRA administration (up to 10 percent) and the costs of activities within the Richfield Redevelopment Project Area. Subsection 2-19. Notification of Prior Planned Improvements The City or HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of Urban Village Tax Increment Financing District enlargement with a listing of all properties within Urban Village Tax Increment Financing District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original value of Urban Village Tax Increment Financing District by the value of improvements for which a building permit was issued. Pursuant to M.S., Section 469.177, Subd 4, the City has reviewed the area to be included in Urban Village Tax Increment Financing District and found that two building permits have been issued for parcel number 27-028-24-32-0028 within the 18 months preceding November 23,1998. The increase in value anticipated due to these permits is $3,900. • City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District .2-10 Subsection 2-20. Excess Tax Increments 46 Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authoriz6d by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 4-5.61, Subd. 3, the City or HRA shall use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In.addilion, the City or HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in Urban Village Tax Increment Financing District or the Richfield Redevelopment Project Area. Subsection 2-21. Requirements for Agreements with the Developer The City or HRA will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City or HRA to demonstrate the conformance of the development with city plans and ordinances. The City or HRA may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. S, no more than 25 percent, by acreage, of the property to be acquired in Urban Village Tax Increment Financing District as set forth in the Plan shall at any time be owned by the City or HRA as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178, to which tax increments from property acquired is pledged, without the City or HRA having, prior to acquisition in excess of 25 percent of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City or HRA should the development or redevelopment not be completed. Subsection 2-22. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City or HRA may enter into an agreement in recordable form with the developer of property within Urban Village Tax Increment Financing District which establishes a minimum market value of the land and completed improvements for the duration of Urban Village Tax Increment Financing District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor,to be a reasonable estimate, the assessor may certify the minimum market value agreement. E City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-11 Subsection 2-23. Administration of Urban Village Tax Increment Financing District 40 Administration of Urban Village Tax Increment Financing Districtwill be handled by the HRA Director of the City of Richfield. Subsection 2-24. -Financial Reporting Requirements A. Filing with State Auditor, County Auditor, County Board and School Board: Pursuant to M.S., Section 469.1 5, Sabd. 5, the City or HRA must file an annual disclosure report for all tax increment financing districts, including Urban Village Tax Increment Financing District. The report shall be filed with the County Board, County Auditor, School Board, and the State Auditor on or before July I (August 1 beginning for reports to be filed in 1999) of each year. The report to be filed by the City or HRA shall include the following information: 1. the amount and source of revenue in the tax increment account; 2. the amount and purpose of expenditures from the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of Urban Village Tax Increment Financing District; 5. the captured net tax capacity retained by the City or HRA; 6. the captured net tax capacity shared with other taxing districts; 7. the tax increment received; and 8. any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City showing: 1. the tax increment received and expended in that year, 2. the original net tax capacity, 3. captured net tax capacity, 4. amount of outstanding bonded indebtedness, 5. the amount of Urban Village Tax Increment Financing District's increment paid to other governmental bodies, 6. the amount paid for administrative costs, 7. the sum of increments paid, directly or indirectly, for activities and improvements located outside of Urban Village Tax Increment Financing District, and 8. any additional information the City or HRA deems necessary. C. State Auditor filing for Urban Village Tax Increment Financing District: Pursuant to M.S., Section 469.175, Subd. 6, the City or HRA must annually submit to the State Auditor, on or before July 1 (August I beginning for reports to be filed in 1999), a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in Urban Village Tax Increment Financing District; 2. permit comparison and reconciliation with the City and HRH's accounts and financial reports; to 3. permit auditing of the funds expended on behalf of Urban Village Tax Increment Financing City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-12 District or that is funded in part or whole through the use of a development account funded 06 with tax increments from other tax increment districts or with public money; and 4. be consist6nt with generally accepted accounting principles. The financial report must also include the following: 1. the on ,final net tax capacity of Urban Village Tax Increment Financing District; 2. the captured net tax capacity of Urban Village Tax Increment Financing District, including the amount of any captured net tax capacity shared with other taxing districts; 3. the amount budgeted under the Plan, and the actual amount expended for, at least, the following categories (for the reporting period and for the duration of Urban Village Tax Increment Financing District): a. acquisition of land and buildings through condemnation or purchase; b. site improvements or preparation costs; c. installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d. administrative costs, including the allocated cost of the city; e. public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and 4. the total costs of the property to the City or HRA and the price paid the developers (for properties sold to developers); 5. the amount of increments rebated or paid to developers or property owners for privately financed improvements or other qualifying costs, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in Urban Village Tax Increment Financing District. D. State Auditor filing for all Tax Increment Financing Districts: Pursuant to M.S., Section 469.175, Subd. 6a, the City or HRA must also annually report to the State Auditor before or on July 1 (August 1 beginning for reports to be filed in 1999) of each year the following amounts for the entire City: 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar year; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on: (i) general obligation tax increment financing bonds and (ii) other tax increment financing bonds; and for each tax increment financing district within the City: I . the type of tax increment financing district; 2. the date on which the district is required to be decertified; 3. the amount of any payments and the value of in-kind benefits, such as physical improvements and the uses of building space, that are financed with revenues derived from increments and are provided to another governmental unit (other than the municipality) during the preceding calendar year; 4. the tax increment revenues for taxes payable in the current calendar year; 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of each district; and City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-13 6. any additional information that the State Auditor may require. Copies of this report must"also be provided to the county and school district boards. If the City fails to make a disclosure or submit a report containing the information required by Section 469.175 sudb. 5, 6 and 6a, the State Auditor will d1rectthe County Auditor to hold the distribution of tax increment from Urban Village Tax Increment Financing District. Subsection 2-25. Nlunicipal Approval and Public Purpose The reasons and facts supporting the findings for the adoption ofthe Tax Increment Financing Plan for Urban Village Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as fello.?s: Finding that Urban Village Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). Urban Village Tax Increment Financing District consists of 21 parcels, with plans to redevelop the area for commercial purposes. At least 70 percent of the area in the parcels in Urban Village Tax Increment Financing District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in Urban Village Tax Increment Financing District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably • be expected to occur solely through private investment within the reasonablyforeseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax incrementfinancing 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 Urban Village Tax Increment Financing Districtpermitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonablyforeseeablefuture: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. In order to facilitate the project, the developer must buy single family homes at a price higher than rental town house project will support. Further, since this is an urban setting, no land is available for parking. Therefore, the developer must build approximately 600 car parking ramp. Due to this high cost of redevelopment, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter as justification that he would not have gone forward without tax increment assistance (see attachment in Appendix G). The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of constructing site improvements, a public ramp and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made • redevelopment infeasible without tax increment assistance. Therefore, the City reasonably City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-14 determines that no other redevelopment of any kind is anticipated on this site without substantially similar assistance being provided to the development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of Urban Village TaxIncrement Financing District and the use of tax increments has been performed as described above., If all development which is proposed to be assisted with tax increment were to occur in Urban Village Tax Increment Financing District, the total increased market value would be up to $21,828,175. The present value of tax increments from Urban Village Tax Increment Financing District is estimated to be $8,579,438. It is the Council's finding that no development ,.vith a market value of greater than $4,469,236 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, public improvements, site improvements and public utilities in the general area of the Urban Village Tax Increment Financing District (see Cashflow in Appendix D). 3. Finding that the Tax Increment Financing Plan for Urban Village Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on October 27, 1998. The Planning Commission found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment FinancingPlan for Urban Village Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. • The project to be assisted by Urban Village Tax Increment Financing District 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 2-26. Fiscal Disparities Election Pursuant to MS., Section 469.177, Subd. 3, the City or HRA may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause a, (outside Urban Village Tax Increment Financing District) are followed, the following method of computation shall apply: (1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financingplan, to share with the local taxing districts is the retained captured net tax capacity of the authority. is (2) The county auditor shall exclude the retained captured net tax capacity of the authorityfrom City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-15 the net tax capacity of the local taxing districts in determining local taxing district tax rates. • The local tax rates so determined are to be extended against the retained captured net tax capacity (?f the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. I f the calcu lati on s pursuant to MS., Section 469.177, Subd. 3, clause b, (within Urban Village Tax Increment Financing District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6 Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereofwhich the authorityhas designated, in its tax incrementfrnancingplan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authorityfrom the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City or HRA shall submit to the County Auditorat the time ofthe request for certification which method of computation of fiscal disparities the City or HRA elected. The City of Richfield will choose to calculate fiscal disparities by clause b. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-27. Other Limitations on the Use of Tax Increment I . General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the Richfield Redevelopment Project Area pursuant to the M.S., Sections 469.001 to 469.047; . These revenues shall not be used to circumvent existing levy limit law. No revenues derived from City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2=16 tax increment shall be used for the acquisition, construction, renovation, operation or maintenance • of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision steal l not prohibit the use of revenues derived from tax increments forthe construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. 2. Poplin< Limitations. At least 75 percent of tax increments from Urban Village Tax Increment Financ i ng District must be expended on activities in Urban Village Tax Increment Financing District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of Urban Village Tax Increment Financing District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of Urban Village Tax Increment Financing District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from Urban Village Tax Increment Financing District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of Urban Village Tax Increment Financing District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or • credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, skyways and parking facilities for the site. The allocated administrative expenses of the City or HRA, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2-28. State Tax Increment Financing Aid Pursuant to M.S., Section 273.1399, fortax 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 Af.S.. Section 273.1399, Subd. 6, the City or HRA may choose an option to the LGA-HACA penalty. Urban Village Tax Increment Financing District is exempt from the LGA-HACA reduction if the City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-17 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 oreveloper 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 ofthe project described in this Plan, in an amount equal to 5 percent of annual tax increment for Urban Village Tax Increment Financing District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or HRA or other unit of government with unrestricted funds. Subsection 2-29. 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 2-30. Economic Development and Job Creation To the extent applicable, the City or HRA agrees to comply with M.S., Section 116J.991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in, _)bs and meet wage level goals in Minnesota within two years of receiving assistance (See Appendix E). Subsection 2-31. Summary The City of Richfield is establishing Urban Village Tax Increment Financing Districtto preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for Urban Village Tax Increment Financing District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55402-4100, telephone (612) 697-8500. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2-18 • • 1__ \ L-..J APPENDIX A PROJECT DESCRIPTION Urban V illage Tax increment Financing District is created to facilitate constructionof integrateddevelopment that will include housing, commercial and parking elements. The housing element contains a total of approximately 210 units consisting of approximately 132 rental apartments with underground parking and approximately 78 units of senior assisted living. The commercial element of the development consists of approximately 80,000 square feet of commercial space on three levels. McDonald's will be relocated to the corner of Lyn date and 671 Street. A 500 to 650 car parking ramp will also serve on-site and general public parking needs. In addition, it has been proposed that a corridor will connect the parking ramp and commercial uses. Transit. services are under consideration and an emphasis will be placed on maximizing green space and creating pedestrian paths consistent with the Richfield Lake area concept plan. APPENDIX A-I APPENDIX B BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND URBAN VILUAGE TAX INCREMENT FINANCING DISTRICT 0 A APPENDIX B-1 MOMS BCD Q? RLOZ ?CCD wal ?0? 0 MOTH?YJpI L1 y.,,....?, o0o f NIDI HILL NaM Mgt MgI I HOC a ""I? t/1 AFC KID, HLtt '°"H? o Grow= Z W ahlAlo a? W W ??C Q ul W13Tt7JN THC&la?B -, ? I 1 wv?uula" ? 0 0 ?? alaLtjvJ LWO ? WSW EU W ,NDdno J NOGN2VG INOM?W s 5 V 0,aaA oo? ?Vwl 'Q')En''I/? o°°?? S3"fvT J om DOC ?C]C KVDWM WN43d DEC ?QC SNMU Imo, N; Z M N tl? CO?0 ?????C]C]CC] HILL IOC1p??00 C ?C]C70C] HUI H RP 2? NMI D ??O??? ,oI,H OC]C?CCO? OW1*0 o??oo??? F. DOCO??O IW cr.vvw O??00?0 Lawuuw C????C] III. CNE ?O?OB??OC7C] (we sN3maLs ?? C7??C]??O C70 CO????C AV13TOON TEKMVM ?o oo???D DD a ??O?CJ ? .WT. ==E ????o? ? iN%SV31d • oa ??eo ? asl?D E7 -4NV370mmi "Okaw ? a?oCO? kvsm aooo? ?aoo NOGHW8 JNOVQW abwlo OCR c?o°?o° iaT? .w O??O (? >? ?C]?O? u xcm C QoCOC II, ?C?DODO ?? „, C ?OC]C]0 DD NOINBJ O PO?OC] q? umm C?C?C]C W? Nam D TESSM C RMW3 SWCHL ???? HOC] NDkn NW8W o a ? g' c c? Li 0 APPENDIX C Is LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT Parcel Numbers Address 27-028-24-32-0125 6645 Harriet Avenue South 27-028-24-32-0123 6625 Lyndale Avenue South 27-028-24-32-0124 407 661 Street West 27-028-24-32-0126 6701 Lyndale Avenue South 27-028-24-32-0062 6709 Lyndale Avenue South 27-028-24-32-0045 6700 Garfield Avenue South 27-028-24-32-0011 301661 Street West 27-028-24-32-0012 6614 Pleasant Avenue 27-028-24-32-0013 6620 Pleasant Avenue 27-028-24-32-0014 6621 Grand Avenue South 27-028-24-32-0015 6615 Grand Avenue South 27-028-24-32-0016 6607 Grand Avenue South 27-028-24-32-0017 6601 Grand Avenue South 27-028-24-32-0018 307 661 Street West 27-028-24-32-0028 6626 Pleasant Avenue 27-028-24-32-0029 6630 Pleasant Avenue 27-028-24-32-0030 6640 Pleasant Avenue 27-028-24-32-0031 6644 Pleasant Avenue 27-028-24-32-0032 6645 Grand Avenue South 27-028-24-32-0033 6635 Grand Avenue South 27-028-24-32-0034 6627 Grand Avenue South • APPENDIX 11 C-1 APPENDIX D • ESTIMATED CASH FLOW FOR URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT • E APPENDIX D-1 • mme RI100, city a Pocta111d -wean Va." BASIC ASSUMPTIONS District New Redevelopment District Inflation Rate 0.0000% Pay As You Go Rate - Tax Exempt 5.50% Fiscal Disp. Contribution Ratio 18.6928% Tax Capacity Extension Rate 1.350000 EST PID NAME ADDRESS BASE MARKET VALUE PROPERTY TYPE BASE TAX CAPACITY USE 27-028.24-32-0125 R.SA 6615 Hama Aw S. 435,000 3.50% 15,225 Commerical 1,27-028.24.32-0123 R.SA. 6625 Lyrmele AM S. 4,537,000 3.50% 158,795 Commerical 27-028.24.32-0124 R.sA 40766itn/wast 2,167,000 3.50% 75,845 Commerical 27-028.24.32-0126 R.SA 6701 Lynda" Aw S. $72,000 1.00% 720 Single Fem. 27-028.24-32.0062 RAC. 6709 LyrXV" Ave S. $86,000 1.00% 954 Single I=. 27-028.24-32.0045 Strom 6700 Gam" Ave S. $82,000 1.00% 880 Single Fem. 27-028-24.32.0011 Johnson 301 66th St West $79,000 1.00% 824 Single I=. 27-028-24.32-0012 Kkerey 6614 Mamas Ave $76,000 1.00% 769 Single I=. 27-028-24.32.0013 Donate 6620 Pleasaa Ave $84,000 1.00% 917 Single Fam. 27-028.24.32.0014 Evans 6621 Grand AVe S. $94,000 1.00% 1,102 Single I -- 27-028.2432.0015 Moore 6615 Grand Ave S. $76,500 1.00% 778 Single Fun. 27-028.24.32-0016 Nkh.1son 6M7Grand AWS S. $96,000 1.00% 1,139 Single Pam. 27-0284432-0017 Z" 6601 Drag Ave S. $130,000 3.50% 4,550 C-,ic i 27-028.2432.0018 Alarte 30786th SIWest $74,000 1.001% 740 Single I=. 27-028-24-32-0028 Cokey 6626 Pteasaa Ave $100,000 1.00% 1,213 Single Faro. 27.028.2432-0029 Vargo 6830 Pleasaa/ve $106,000 1.00% 1,324 Single 1- 27-028-2432.0030 Pklad 6640 PININN Ave $80,000 1.00% 843 Single Fem. 27-028.24.32.0031 Martin 6614 PIeasaa Ma $95,000 1.00% 1,120 Single Fam. 27-028.24.32.0032 Souchaay 6615 Grand /w S. $117,000 1.001/6 1,527 Single Farm. 27-028-2432-0033 Gross 6836 Grand Aw S. $92,000 1.00% 1,065 Single Farm. PROJECT VALUE INFORMATION Taxes Market Tax Capacity Total Tax Phase Development Sq. Ft/ Per Vakre Total Minus Capacity Tax Market Type Uvts . Ft/tA3it S q. FtJUrdt Taxes Fs. Dis. Rate Value Pa abl Existing 271,556 0 N/A N/A I Ramp 600 $0.00 0 0 0 N/A 2001 2 Rental Housing 76 $2,446.88 $72,500.00 190,856 141,375 141,375 2.50% 5,655,000 2002 2 Commedcal 74,000 $4.00 $84.66 296,000 178,274 219,259 3.50% 6,264,550 2002 2 Cannaricat 4,000 $4.00 $84.66 16,000 9,636 11,852 3.50% 338,624 2001 3 Rental Housi 132 $2,446.88 $72,500.00 322,988 239,250 239,250 2.50% 9,570,000 2002 Torsi 825,844 840.091 611.736 21.828,175 Prepared by Pub" kv. - Please MOW 81 as 11101016. Pap I UNar3.WK4 tOA&W pry cl PAOO ld - Uem Vs." papa 2 • • TAX INCREMENT CASH FLOW BOOMN Period Arrwal Project Captured Semi-Annual AdtiNState Aud Trust Semi-Annual Semi-k"W Local Endng Period Bass Tax Tax Tax Gross Tax Payment Fund Net Tax Present Value - Match Yrs. Mlh. Yr. C d Capacity capacity Increment 10.25% 15.00% Increment 5.00% Yrs. Mth. Yr. 0.0 08-011998 271,556 271,556 0 0 0 0 0 0 0 0.0 02-011999 0.0 02-011999 271,556 271,556 0 0 0 0 0 0 0 0.0 08-011999 0.0 08-011999 271,556 271,556 0 0 0 0 0 0 0 0.0 02-012000 0.0 02-012000 271,556 271,556 0 0 0 0 0 0 0 0.0 08-012000 0.0 08.012000 271,556 271,556 0 0 0 0 0 0 0 0.0 02-012001 0.0 02-012001 271,556 281,192 9,636 6,505 (667) (976) 4,862 4,132 325 0.0 08-012001 0.0 08-012001 271,556 281,192 9,636 6,505 (667) (976) 4,862 8,153 325 0.0 02-012002 0.0 02-012002 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 239,050 19,188 0.5 08-012002 0.5 08-012002 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 463,766 19,188 1.0 02-012003 1.0 02-012003 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 682,469 19,188 1.5 08-012003 1.5 08-012003 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 895,318 19,188 2.0 02-012004 2.0 02-012004 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 1,102,471 19,188 2.5 08-012004 2.5 08-012004 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 1,304,079 19,188 3.0 02-012005 3.0 02-012005 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 1,500,291 19,188 3.5 08-012005 3.5 08-012005 271,556 840,091 568,535 383,761 (39,336) (57,664) 286,861 1,691,252 19,188 4.0 02-012006 4.0 02-012006 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 1,877,103 19,188 4.5 08-012006 4.5 08-012006 271,556 840,091 568,535 363,761 (39,336) (57,564) 286,861 2,057,979 19,188 5.0 02-012007 5.0 02-012007 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 2,234,014 19,188 5.5 08-012007 5.5 08-012007 271,556 840,091 668,635 383,761 (39,336) (57,664) 286,861 2,405,337 19,188 6.0 02-012008 6.0 02-012008 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 2,572,076 19,188 6.5 08-012008 6.5 08-012008 271,556 840,091 568,535 383,761 (39,336) (57,664) 286,861 2,734,352 19,188 7.0 02-012009 7.0 02-012009 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 2,892,284 19,188 7.5 08-012009 7.5 08-012009 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 3,045,990 19,188 8.0 02-012010 8.0 02-012010 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 3,195,582 19,188 8.5 08-012010 8.5 08-012010 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 3,341,170 19,188 9.0 02-012011 9.0 02-012011 271,556 840,091 568,635 383,761 (39,336) (57,564) 286,861 3,482,862 19,188 9.5 08-012011 9.5 08-012011 271,556 840,091 668,635 383,761 (39,336) (57,564) 286,861 3,620,761 19,188 10.0 02-012012 10.0 02-01 2012 271,556 840,091 568,535 383,761 (39,336) (57,664) 286,861 3,754,970 19,188 10.5 08-01 2012 10.5 08-01 2012 271,556 840,091 568,635 383,761 (39,336) (57,664) 286,861 3,885,687 19,188 11.0 02-01 2013 11.0 02-01 2013 271,556 840,091 568,535 383,761 (39,336) (57,664) 286,861 4,012,708 19,188 11.5 08-01 2013 11.5 08-012013 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,136,427 19,188 12.0 02-01 2014 12.0 02-012014 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,256,834 19,188 12.5 08-012014 12.5 08-01 2014 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,374,019 19,188 13.0 02-012015 13.0 02-01 2015 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,488,068 19,188 13.5 08-012015 13.5 08-01 2015 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,599,064 19,188 14.0 02-01 2016 14.0 02-01 2016 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,707,089 19,188 14.5 08-01 2016 14.5 08-01 2016 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 4,812,224 19,188 15.0 02-01 2017 15.0 02-012017 271,556 840,091 568,535 383,761 (39,336) (57,664) 286,861 4,914,644 19,188 15.5 08-01 2017 15.5 08-01 2017 271,556 840,091 568,635 383,761 (39,336) (57,564) 286,861 5,014,126 19,188 16.0 02-01 2018 16.0 02-01 2018 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,111,043 19,188 16.5 08-01 2018 16.5 08-01 2018 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,205,366 19,188 17.0 02-01 2019 17.0 02-01 2019 271,566 840,091 568,635 383,761 (39,336) (57,564) 286,861 5,297,164 19,188 17.5 08-01 2019 17.5 08-01 2019 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,386,606 19,188 18.0 02-01 2020 18.0 02-01 2020 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,473,456 19,188 18.5 08-01 2020 18.5 08-012020 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,558,079 19,188 19.0 02-01 2021 19.0 02-01 2021 271,556 840,091 568,535 383,761 (39,336) (57,664) 286,861 5,640,438 19,188 19.5 08-01 2021 19.5 08-01 2021 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,720,592 19,188 20.0 02-01 2022 20.0 02-01 2022 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 5,798,601 19,188 20.5 08-01 2022 20.5 08-01 2022 271,556 840,091 568,635 383,761 (39,336) (57,564) 286,861 5,874,522 19,188 21.0 02-01 2023 21.0 02-01 2023 271,556 840,091 668,535 383,761 (39,336) (57,564) 286,861 5,948,411 19,188 21.5 08-01 2023 21.5 08-01 2023 271,556 840,091 668,535 383,761 (39,336) (57,564) 286,861 6,020,323 19,188 22.0 02-01 2024 22.0 02-01 2024 271,556 840,091 668,535 383,761 (39,336) (57,564) 286,861 6,090,310 19,188 22.5 08-01 2024 22.5 08-01 2024 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 6,158,423 19,188 23.0 02-01 2025 23.0 02-01 2025 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 6,224,714 19,188 23.5 08-01 2025 23.5 08-01 2025 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 6,289,231 19,188 24.0 02-01 2026 24.0 02-01 2026 271,556 840,091 568,535 383,761 (39,336) (57,564) 286,861 6,352,021 19,188 24.5 08-01 2026 24.5 08-01 2026 271,556 840,091 568,535 383,761 39,336 57,564 286,861 6,413,130 19,188 25.0 02-01 2027 TOTALS 19,201,065 1,968,109 2,880,160 14,352,796 960,053 PRESENT VALUE 8,579,438 879,392 1,286,916 6,413,130 6,413,130 BUT / FOR ANALYSIS curare Ma" Vaiw . Est. 8,779, 500 Naw Mwk44 %W w . E•s. 21,828,175 0o«arrca 13,048,675 Prsswn Vak.or Tax Ir.-WA 8,579,438 Dlhararrca 4,469,236 Vaa,aLka toOm WitlraaTFlsLaaThan: 4,469,236, RItOP Prapaad by PWSOOrp arc. - Ptsasa r"aw a? am..V lorls. UDen3.WKt APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) • • APPENDIX E-1 NESpl9 Trade & , Economic Development February 27, 1998 To all Minnesota state and local government agencies: As you know, state and local governments are increasingly responding to the need to be more accountable with taxpayer dollars. This is especially true in the areas of economic development and business assistance. The legislatively-created Corporate Subsidy Reform Commission reviewed many of Minnesota's business subsidies and concluded that the reporting mechanisms should be improved to enhance accountability. The Department of Trade and Economic Development (DTED) created the Minnesota Business Assistance Forst in 1995 to assist state and local agencies in meeting the accountability measures contained in M.S. 116J.991. The form has been modified this year to respond to the Commission's recommendations. M.S. 1161.991 requires a business receiving state or local government assistance to create a net increase in jobs in Minnesota within two years of receiving assistance. The law also requires the business to meet wage level and job creation goals established by the funding agency. Until the wage and job goals are achieved, each government agency that works with these businesses is mandated to annually report the goals and any progress toward these goals to DTED. If the goals are not achieved, the business must repay the assistance to the governmental agency at the terms negotiated in the assistance agreement. "Business assistance" refers to any business grant or loan using state or local dollars in excess of $25,000 or any new business activity within a tax increment district. While not defined in statute, our interpretation is that this would include grants, loans, interest subsidies, tax increment financing (TIF) or any other public monies directly benefitting a business and given for economic development or job growth purposes. Please use the enclosed Minnesota Business Assistance Form for each business assistance agreement signed between July 1, 1995 and December 31, 1997. All financial assistance agreements signed during this period should be reported by April 15, 1998 regardless when the assistance was awarded, unless a form has been submitted indicating that the business has met the established wage and job creation goals. Moreover, each year you will receive anew form from DTED to be completed and returned. Each year's form should be submitted until all wage and job goals have been achieved: Please mail or fax your completed form(s) to DTED before April 15, 1998. The form does not need to be submitteA if assistance has not been provided to a business. Sincerely, Jay Nova Commissioner )00 Metro Square. 12 1 .-th Plare East, Stint Paul. Minnesota 11) I01-:' 146 1ISA 61-1-297-1291 • 800-637-1818 • Fax 612. 96-477! • ITN A Dl) 2;11(1-ti.'; •';i'"1 m%%%.dted.statc.mn.us ?ixANESor Q Trade adff6fnic Dew1ppmmr 1998 Minnesota Business Assistance Form* (Please return by April 15, 1998) Please type or print in dark ink. 1. Funding government agency name 2. Contact name 3. Agency street address 4. City 5. Zip code 6. Phone number (area code) 8. Type of government agency Regional State City County 7. Fax number (area code) - - - _ Other (Please indicate) 9. Name of business receiving assistance 10. Industry of recipient (SIC code) 11. Type of assistance (e.g. loan, TIF, grant, infrastructure, etc.) 12. Name of TIF district (if applicable) 13. Date of business assistance agreement 14. Date assistance fast provided 15. Date project (building/ machinery/etc.) was placed in service 16. Dollar value of business assistance For assistance agreements signed between July 1, 1995 and December 31, 1997, complete boxes 17 through 20 or boxes 21 through 24. For all agreements signed during 1998 and future years, the information in boxes 21 through 24 will be required. 17. Job creation goals for business receiving assistance 18. Average hourly wage level goals for business receiving assistance 19. Actual jobs created since business received assistance 20. Actual average hourly wage paid to employees hired since business received assistance Goals of business receiving assistance: (Please indicate Actual performance since project placed in service: (Please number of employees at each wage level and indicate the indicate number of employees at each wage level and indicate corresponding benefit level.) the corresponding benefit level.) 21. Job Creation Hourly Wage 22. Hourly Val 23. Job Creation Hourly Wage 24. Hourly Value Level of Voluntary Level of Voluntary Full-time Part-time (excl. benefits) Benefits ($) Full-time Part-time (excl. benefits) Benefits (S) less than $7.00 less than $7.00 $7.00 to $7.99 $7.00 to $7.99 $8.00 to $9.99 $8.00 to $9.99 $10.00 to $11.99 $10.00 to $11.99 $12.00 and higher _ $12.00 and higher If necessary, please attach additional documents. If necessary, please attach additional documents. 25. Last date actual wage and job creation levels documented 26. Date this Minnesota Business Assistance Form completed 27. Have all wage and job goals been achieved? U Yes -do not submit future forms for this project. ? No - lease submit this form in 1999. * Thu form replaces all previous forms. Please complete one form for each business assistance agreement your agency signed between July 1, 1995 and December 31, 1997 which provided .1;25,000 or more in public funds. • A form should be submitted annually for each assistance agreement until a submitted form indicates that all wage and job creation goals have been achieved Do not submit this form if your agency has not agreed to provide assistance to a business since July 1, 1995. (over) "W4NESOTI ?Q • 'Dade & Econonuc Development Please send completed form annually by April 15 to: Minnesota Business Assistance Form - AEO Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 East 7th Place St. Paul, Minnesota 55101 or fax report to: (612) 215-3841 For information, call: (612) 297-2335 or 1-800-657-3858 • Minnesota Statutes 116J.991: A business that receives state or local government assistance for economic development or job growth purposes must create a net increase in jobs in Minnesota within two years of receiving the assistance. The government agency providing the assistance must establish wage level and job creation goals to be met by the business receiving the assistance. A business that fails to meet the goals must repay the assistance to the government agency. Each government agency must report the wage and job goals and the results for each project in achieving those goals to the department of trade and economic development. The department shall compile and publish the results of the reports for the previous calendar year by June 1 of each year. The reports of the agencies to the department and the compilation report of the department shall be made available to the public. For the purposes of this section, "assistance" means a grant or loan in excess of $25,000, or tax increment financing. 0 APPENDIX F • REDEVELOPMENT QUALIFICATIONS FOR THE I IFr BAN VILLAGE TAX INCREMENT FINANCING DISTRICT The following is a draft of the redevelopment qualifications. Final redevelopment qualification finding will-be included at the public hearing. • APPENDIX F-I • • • p p O L L. L L L L L L L . L L L L L . 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L CV a APPENDIX G BUT/FOR SUPPORTING DOCUMENTATION To be added prior to the public hearing. c: APPENDIX G_1 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 73 Agenda November 16, 1998 Issue Statement: Approval of a Contract for Private Redevelopment with Richfield State Agency, Inc. (RSA); Urban Village. Background: RSA and City staff have been working on the concept of redeveloping the southeast quadrant of 66th Street and Lyndale Avenue. The quadrant includes the Richfield Bank and Trust office building, the adjacent medical clinic and a block of 14 homes and a Chiropractic office at 66th to 67th Street and Pleasant to Grand Avenues. The HRA has expressed interest in the proposal since April 1998 and on September 21 directed staff to prepare an exclusive rights agreement and a development agreement. The "Urban Village", the title given to the project, is a product of the Richfield Lake master planning process which began in February 1997 and the HRA's response in February 1998 to homeowners located in areas identified for possible change. The HRA sought development proposals to help determine whether an early acquisition program was warranted. RSA was one of five responding development teams and offered the most comprehensive mixed use development proposal. RSA's comprehensive proposal includes a mixture of new housing choices, retail, office and public space. The proposal adds up to 80,000 sq. ft. of additional office/retail space, 210 housing units (78 senior assisted housing, 132 rental townhome apartments), a 600 space parking ramp, the relocation of McDonalds to 67th Street and 40 Lyndale Avenue, two restaurants that may serve liquor, and a public plaza which connects these elements. A site plan is attached. Also attached to this letter is a proposed contract which has been under discussion between staff and representatives of RSA. Representatives of. RSA as well as HRA legal counsel will be at the HRA meeting on November 16 to facilitate review and discussion of the proposed contract by the HRA. (The contract is similar to that recently approved by the HRA with CSM for the Interchange West area.) Legal counsel has also met with HRA Chair, Thomas Harms, who will not be at the HRA meeting but provided feedback to legal counsel. The following is a summary of the major points/sections of the agreement: The 11 articles are delineated in the Table of Contents. Page one provides the basic assumptions on which the agreement is based. Article I "Definitions". Note especially the definitions for "development", "element", "minimum improvements", and "notes". RSA would be the redeveloper and be responsible for construction of the project and its conformance with the contract. The availability of tax increment financing (TIF) is critical to the undertaking of this project. i Approximately $10.3 million in eligible TIF costs have been identified. The available tax increment over 25 years is estimated to be $6,667,000 at zero percent inflation. At two percent inflation, $8,772,000 is available. The Hennepin County Assessors estimated market value today, $8,779,500, would increase by an estimated $21,388,000 upon the completion of development, based on the developer input reviewed and analyzed by Ehlers. Mark Ruff of Ehlers can respond to any questions the HRA may have. Article II "Representations". These are some basic statements for the HRA and the redeveloper. It also indicates that the establishment of a TIF district will be considered. Article 11.5 "Preconditions to Acquisition". A list which must be completed within 60 days of the date of the agreement. This section lays out the conditions which must be met prior to the HRA purchasing any property on behalf of RSA. (RSA is not precluded from purchasing property directly from owners.) If agreement is not reached, either party may terminate the agreement. Among other things, the agreement requires the redeveloper to complete a concept plan within 45 days from the date of this agreement and submit a schedule for the commencement and completion of each element of the project, as well as for the public improvements which would serve the development within 60 days of the date of this agreement. The Preconditions also require a personal protection and safety plan for the parking ramp and the use of a relocation consultant in the acquisition process. Article III "Site Assembly". It is the intent of the parties that the redeveloper purchase as much of the property directly as is possible. Within 120 days of the date of this agreement the developer must provide information on the status of the preconditions. 40 If the redeveloper and a property owner are unable to agree on price, the property owner may request mediation. If negotiations are not successful, the redeveloper may request that the HRA condemn the property. The redeveloper would be required to deposit with the HRA the estimated cost of all expenses which would be associated with this undertaking by the HRA. Also the redeveloper must indicate that they have taken all reasonable steps to purchase the property for which condemnation is being sought. This article also contains language which would make it possible for either the HRA or the redeveloper party to terminate the contract. The last section of this article (d) references "Reimbursement of Redeveloper's Expenses" utilizing the tax increment note. Article IV "Construction of the Minimum Improvements". The improvements must be in conformance with the concept plans and the redeveloper is responsible for the costs related to demolition/site clearance and soil correction. A certificate of completion would be issued by the HRA for each element of the development. Article V "Public Improvements". Note that this matter is addressed in Section 2.5 1(b). Article VI "Insurance". Requires the redeveloper to maintain insurance on the development throughout the term of the TIF notes. Article VII "Tax Increment". Is blank, as the items related to tax increment are addressed in other areas of the document. Article VIII "Financing". Addresses issues related to default and cures for default. The HRA is provided an opportunity to cure a default should it so elect. Also, in Section 8.5, the HRA agrees to subordinate its interest in the development if required to do so by a lender for an element of the development. The HRA would be asked to sign a 10 subordination agreement (a copy is attached). Article IX "Prohibitions Against Assignments and Transfer". Regulates the redeveloper in matters related to transfer of the property and assignment of this agreement. Section 9.4(a) gives the redeveloper the right to convey portions of the property to other entities (developers) who would then be responsible for construction of a particular element. The section also states that by so doing RSA remains fully obligated under the contract for that element. The obligation of RSA only terminates with the issuance of a certificate of completion by the HRA. Article X "Events of Default". Defines defaults and remedies. Section 10.5 discusses qualifications related to different entities undertaking different elements of the redevelopment. A default in one element can only give rise to a remedy for that element. For example, if an element is in default the HRA could withhold a TIF payment only under the note for that element. Failure to maintain the development in good repair for the term of the Note would be an example of default. Article XI "Additional Provisions". Addresses a variety of items such as conflict of interest, non-discrimination, and proper notice to the parties. An attachment to the contract is a limited revenue tax increment note. It is similar in . form to notes issued previously by the HRA. Under the terms of this "pay as you go" note, TIF assistance would be provided to the redeveloper according to a payment schedule for a period of up to 25 years. The note is payable only from the tax increment produced by the development and references the specific element of the development it refers to. If taxes are not paid, the HRA is not obligated to make payments under the note. Under Article 11.5, "Preconditions", the specific details of the notes will be worked out during the 60 day period following the approval of the agreement. Assessment Agreement, Exhibit D, is also attached. This agreement will be used for each element of the development and establishes a minimum market value for each element. Recommended Motion: 1. Discuss the proposed contract between the HRA and RSA Inc. 2. Adopt a motion which approves the attached resolution which approves the contract. Basis of Recommendation: 1. The HRA authorized staff to negotiate a contract with RSA. 2. The proposed contract is consistent with previous development contracts. 3. The interests of the HRA are protected. 4. RSA is a local interest that has assembled an experienced development team: Elness Swenson Graham Architects; contractors Frana and Sons; Lang Nelson Management to manage the assisted living facility; and Metes and Bounds to manage the retail and rental housing. 5. The proposal is financially sound based on the developer information analyzed by Ehlers on behalf of the HRA. 6. The use of tax increment is appropriate, helping to offset the cost of the parking ramp, public plaza spaces, transit spaces, right-of-way improvements, and the acquisition of the single family homes. 7. The proposal has been refined over a nine month period with significant public input. 8. The HRA requested input from the Planning Commission. A study session on October 13 received favorable feedback to the integrated redevelopment concept. On October 27, the Planning Commission determined that the proposed concept and the use of TIF is consistent with the Comprehensive Plan. Alternative Recommendation: 1. Reject the proposed contract. 2. Modify the proposed contract. 3. Delay action on the proposed contract. Discussion/Decision Mode: Land use and zoning considerations for the Planning Commission and City Council are anticipated in December 1998 and January 1999. Respec Ily submitted, AN James Prosser Execbt a Director JDP:cak 0 HRA RESOLUTION NO. RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH RICHFIELD STATE AGENCY, INC. (RSA) WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") is considering the establishment of a Redevelopment district (the "District") which would be known as Urban Village pursuant to Minn. Stat. Chapter 469 in an effort to encourage the development and redevelopment of certain designated areas within the City of Richfield; and WHEREAS, among the development activities proposed to be assisted by the Authority in the District are the development of office, retail, parking ramp, public plaza, housing and restaurants, and WHEREAS, there has been presented before the Authority a form of Contract for Private Redevelopment ("Contract") among the Authority and RSA setting forth the parties respective responsibility in developing the aforementioned facilities; and WHEREAS, the Authority has reviewed the Contract and finds that the execution of the same and the Authority's performance of its obligations thereunder are in the best interest of the Authority and its residents. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. That the Contract, as presented to the Authority, is hereby in all respects approved, subject to insubstantial modifications which may be subsequently approved by the Board Chair and the Authority's legal counsel. 2. That the proper Authority officers are hereby authorized to execute the Contract on behalf of the Authority and to carry out, on behalf of the Authority, the Authority's obligations thereunder. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th of November, 1998. Thomas E. Harms, Chair ATTEST: 0 Michael Sandahl, Secretary Richfield's vision for the future is to continue The Urban Village is a proposed redevelopment project for the southeast quadrant of Lyndale Avenue and 66th Street that adds new housing choices and new commercial space. Already part of the Richfield Lake master plan, this area comprises the Richfield Bank and Trust property and the block east of the bank, bordered by 66th/67th Streets and Pleasant/Grand Avenues. Whe Urban Village proposal provides 78,000 square feet of additional office/retail space, 210 housing units, a 600 space parking ramp, plus the relocation of the McDonalds to the to be known as the best place to live, work, learn and do business. One of the ways the ? vision is achieved is through redevelopment of commercial areas in decline and adjacent residential areas. corner of 67th and Lyndale. If the Pleasant/Grand block is included, townhome style apartments are proposed for that area. The developer, Richfield State Agency, submitted plans to the Richfield Housing and Redevelopment Authority (HRA) in April and again in September. The HRA will make a final decision about the proposal on November 16. The City Council and Planning Commission will also review the proposal because tax increment financing is requested to build the parking ramp. The City Council meets on November 23. URBAN VILLAGE For more information, PUBLIC MEETINGS: call Bruce Nordquist, 861-9777. Housing and Redevelopment Authority (HRA) - November 16 City Council - November 23 The Urban Hometown Looking to the Future f 0 Discussion Topics and Responses to Concerns Urban Village Development Proposal November 16, 1998 The HRA has reviewed the proposal in April and September, 1998. Two public open houses held in May and August 1998 have displayed the project as part of the Richfield Lake Master Plan process. Numerous meetings have been held with affected area residents within and adjacent to the project to help identify and resolve concerns in advance of the formal approval process. The following information summarizes responses to concerns. Acquisition of Property Since May, the Mediation Center and staff have been working with Pleasant/Grand single family owners to help identify the information needed to make a decision about redevelopment. In June, a survey indicated that eight of 15 property owners were interested in redevelopment. Interest seems to be directly related to level of compensation. Appraisals conducted by BCL for the HRA and shared with the homeowners indicated fair market values that are 10 to 20 percent above the 1998 assessors value for tax purposes. RSA has held joint and individual meetings with willing owners to offer these values as compensation with an additional 15 to 25 percent paid in lieu of relocation. One owner had to sell due to a job change and RSA has purchased that property. Some owners are reluctant to discuss the sale of property before the HRA takes an action on the development on November 16. Richfield Lake Master Plan The Urban Village concept is consistent with the objectives of the Master Plan: to provide new housing choices, attractive public spa: <es, transit integration and new retail. The closure of 67th Street is supported by a traffic analysis not previously available during the planning process. The Master Plan previously proposed that a parkway would be located at 67th Street. Housing Diversity The Metropolitan Council through the Livable Communities Program, 40 encourages more housing choices and less affordable choices in Richfield. Two housing choices not available in Richfield are being provided: Assisted living (a type of independent living for seniors that require some medical assistance) and market rate rental townhomes and apartments. The 1, 2, and 3 bedroom townhomes have projected rents in the year 2001 that range from $900 to $1,500. Using 1998 household income data, these rents would be affordable to senior, empty nestor and young professional households with annual incomes at 80 percent to 100 percent ($35,000 to $60,000) of the median income for the Metropolitan area. While not as affordable as Woodlake Village Townhome Condominiums or Lake Shore Drive Condominiums that were built in the area in the 1980's, they serve a desirable market niche similar to the Richfield Rediscovered single family program. RSA and staff are exploring how to provide even greater affordability to 10 percent of the apartments (13 units). Discussions with MHFA, Metropolitan Council, and HUD did not identify new public resources. RSA is proposing 12 units affordable to households at 70 percent of median ($30,000). By increasing the number of units to 138, RSA can provide six efficiencies, 3-one bedroom and 3-two bedroom units. Traffic RSA and the HRA have jointly contracted with BRW to evaluate traffic. Some initial conclusions of the work in progress are that the "cut through" traffic on 68th Street from Lyndale does not exist. Virtually all of the traffic on 68th Street has a neighborhood destination. To prevent cut through between 67th and 68th Street, the neighborhood south of 67th is satisfied that a proposed loop street concept will solve their concerns. The loop connects Pleasant and Grand Avenues (and an adjacent alley) and separates the neighborhood from the new development. Comprehensive Plan The commercial and residential area is designated regional commercial/office by the Comprehensive Plan. A mixed use development such as the Urban Village is allowed. The Planning Commission made this finding on October 27. Zoning The existing bank and clinic property are zoned PC-2. The residential Pleasant/Grand Avenue block would have to be rezoned to PC-2. The house at 6700 Garfield Avenue is owned by the bank and rented. This home would be rehabilitated and sold to a family for home ownership to retain the residential use. The single family homes at 6701 and 6709 Lyndale would be rehabilitated to remain single family homes in appearance and serve psychiatrist and chiropractic offices being relocated because of the development. The medical office in the house at 6645 Harriet would be located to 6701 Lyndale. Rezoning from residential to accommodate the medical office is required at 6709 Lyndale. 0 The adjacent neighbors find this approach favorable. Rezoning will coincide with 41 RSA acquisition of property. McDonalds Neighbors have raised issues of odor, traffic, and trash. The developer is identifying technologies to address odors and a trash management plan is being developed. Traffic concerns are improved by the neighborhood loop street and locating the drive-through as far away from the neighborhood as possible. Transit As part of the Richfield Lake Plan and as detailed plans for bus service are added at 66th Street and the 135W bridge, new connections are also sought at 66th Street and Lyndale Avenue. A bus shelter and pullout is included as part of the development. Planning Commission Findings The Planning Commission favorably received the concept plans at their October study session. The developer was challenged to reduce surface parking at McDonalds. The nature of this retailing and the expense precludes additional ramp parking. However, the closure of a portion of 67th Street adds more green space and pedestrian parkways than originally conceived. Environmental Assessment Worksheet (EAW) The scope of the development does not require this analysis. However, the developer has volunteered to pursue the assessment, which will be completed at the end of November and in time for the PUD/rezoning process that is scheduled. Cost of Services to New Development The amount of public right-of-way to maintain by the City is being reduced. The ramp, and plaza will be privately maintained. Private security is also provided. Medical sr;rvices on site at the assisted living facility offers an alternative to city emergency response. New construction will add fire suppression protection to the housing, ramp, and new office additions. Existing right-of-way, stop lights, and curb cuts are already in place to manage projected traffic. However, these may change as traffic analysis continues. 0 F-7 • 0 DRAFT 11/6/98 CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND RICHFIELD STATE AGENCY, INC. 1998 This document was drafted by: Kennedy & Graven, Chartered (JBD) 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 E JBD-151646 RC125-182 TABLE OF CONTENTS ARTICLE I Definitions Exhibits Rules of Interpretation Section 1.1. Definitions .................................................................................................................2 Section 1.2. Exhibits ....................................................................................................................4 Section 1.3. Rules of Interpretation .............................................................................................. 4 ARTICLE II Representations - Section 2.1. Representations by the Redeveloper ........................................................................ 5 Section 2.2. Representations by HRA .......................................................................................... 5 ARTICLE 11.5 Preconditions Section 2.5.1 Initial Preconditions to Acquisition ......................................................................... 6 ARTICLE III Site Assembly Section 3.1. Statement of Intent .................................................................................................... 7 Section 3.2. Acquisition ................................................................................................................ 7 Section 3.3. Additional Limitations on HRA Obligation ............................................................. 10 ARTICLE IV Construction of Minimum Improvements Section 4.1. Agreement to Construct ............................................................................................ 14 Section 4.2. Demolition ................................................................................................................. 14 Section 4.3. Soil Correction - Contamination .............................................................................. 14 Section 4.4. Concept Plans ........................................................................................................... 14 Section 4.5. Commencement of Construction .............................................................................. 15 Section 4.6. Construction Reports ................................................................................................ 15 Section 4.7. Certificate of Completion ......................................................................................... 15 ARTICLE V Public Improvements Section 5.1. ...................................................................................................................................16 1BD-151646 RC 125-182 1 • • • f ARTICLE VI Insurance Section 6.1. Insurance ...................................................................................................................17 Section 6.2. Casualty - Proceeds ..................................................................................................17 Section 6.3. Subordination ............................................................................................................ 17 ARTICLE VII Tax Increment Section 7.1. [Blank] ....................................................................................................................... 18 ARTICLE VIII Financing Section 8.1. Limitations Upon Encumbrance ................................................................................ 19 Section 8.2. Copy of Notice of Default to Lender ....................................................................... 19 Section 8.3. Lender's Option to Cure Defaults ............................................................................. 19 Section 8.4. HRA's Option to Cure Default ..................................................................................19 Section 8.5. Subordination ........................................................................................................... 20 ARTICLE IX Prohibitions Against Assignment and Transfer Section 9.1. Representation as to Development ........................................................................... 21 Section 9.2. [Blank] ....................................................................................................................... 21 Section 9.3. Prohibition Against Transfer of Property and Assignment of Agreement ............... 21 Section 9.4. Qualifications ............................................................................................................ 22 Section 9.5. Information as to Stockholders or Partners ............................................................... 22 Section 9.6. Approvals .................................................................................................................. 22 Section 9.6. Release and Indemnification Covenants ................................................................... 22 ARTICLE X Events of Default Section 10.1. Events of Default Defined Individually Liable ........................................................ 25 Section 10.2. Remedies on Default ................................................................................................. 25 Section 10.2.1 Right to Develop the Project with Others ................................................................ 26 Section 10.3. No Remedy Exclusive ............................................................................................... 26 Section 10.4. No Additional Waiver Implied by One Waiver ....................................................... 27 ARTICLE XI Additional Provisions Section 11.1. Conflict of Interests; HRA Representatives Not Individually Liable ....................... 28 Section 11.2. Nondiscrimination ..................................................................................................... 28 Section 11.3. Provisions Not Merged With Deed ........................................................................... 28 Section 11.4. Notice of Status and Conformance ............................................................................ 28 JBD-151646 RC 125-182 11 Section 1 1.5. Notices and Demands ................................................................................................ 28 Section 1 1.6. Counterparts .............................................................................................................. 29 Section 1 1.7. Relocation Consultants .............................................................................................. 29 • 0 JBD-151646 RC125-182 111 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made and entered into this day of , 1998, is by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"), and RICHFIELD STATE AGENCY, INC. a Minnesota corporation, (the "Redeveloper"). WITNESSETH: WHEREAS, the City of Richfield and HRA have established the Richfield Redevelopment Project Area ("Project Area") under the authority of Minnesota Statutes, Chapter 469 (the "Act"), and in accordance with the provisions of this Agreement will undertake to modify the Project Area, and to establish within the modified Project Area the Urban Village Tax Increment Financing District ("TIF District") and to adopt a Tax Increment Financing Plan ("hereinafter defined as the "Tax Increment Plan") for the TIF District to facilitate the financing of public development and redevelopment costs in the Project Area; and WHEREAS, the HRA deems it to be in the public interest to facilitate and encourage redevelopment of the Project Area by a combination of public and private activity within the Project Area and in accordance with the Tax Increment Plan to be adopted by the City; and WHEREAS, the Redeveloper has proposed a development (hereinafter defined as the "Development") within such Project Area which the HRA believes will promote and carry out the objectives for which redevelopment is undertaken, will be in the vital best interests of the City, will promote the health, safety, morals, and welfare of its residents and will be in accord with the public purposes and provisions of the applicable state and local laws and requirements under which activities within the Project Area have been undertaken and are being assisted; and WHEREAS, the Redeveloper is willing, in accordance with the provisions of this Agreement, to purchase property within the Project Area such property being legally described in the attached Exhibit A(hereinafter defined as the "Redevelopment Property") and to develop the Redevelopment Property for and in accordance with this Agreement; and WHEREAS, consistent with the Tax Increment Plan, the HRA is willing to provide financial assistance in accordance with the provisions of this Agreement; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby represent, covenant and agree with the others as follows: • JBD-151646 RC 125-182 ARTICLE I 0 DEFINITIONS, EXHIBITS RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means the Economic Development Act, located at Minnesota Statutes, Chapter 469, as amended. "Agreement" means this Agreement, as the same may be from time time modified, amended, or supplemented. "Certificate of Completion" means the certification, in the form of the certificate contained in Exhibit B attached to and made a part of this Agreement, provided to the Redeveloper, pursuant to Section 4.7 of this Agreement. "City" means the City of Richfield. "Closing" means the date on which title to the portions of the Redevelopment Property which have been acquired by the HRA is transferred to the Redeveloper. 0 "Commencement of Construction" means excavation for the purpose of setting footings or foundation. "Completion of Construction" means the completion of construction of the Minimum Improvements except for tenant finish work. "Concept Plans" mean the plans, drawings and narrative descriptions for the Minimum Improvements. "Construction Contract means a contract or contracts which provides for completion of the Minimum Improvements. "County" means the County of Hennepin. "Development" means the Minimum Improvements to be constructed on various portions of the Redevelopment Property. The Development will consist of several separate and distinct elements. "Element" means a components of the Development which will be developed separately on a separate portion of the Redevelopment Property. "Event of Default" means an action by the Redeveloper. listed in Section 10.1 of this Agreement. 1BD-151646 2 RC125-182 "Minimum Improvements" means the improvements to be constructed by Redeveloper on the Redevelopment Property. The Minimum Improvements are expected to include a 600 vehicle parking ramp, 78 units of assisted living, 132 rental residential units including 30 townhouse units and up to 90,000 gross square feet of commercial space including two restaurants, and related public and private facilities and amenities all as more fully to be described in the Concept Plans. "Minnesota Environmental Policy Act" means the statutes located at Minnesota Statutes Sections 116D.01 et seq., as amended. "Minnesota Environmental Rights Act" means the statutes located at Minnesota Statutes Sections 116B.01 et seq., as amended. "National Environmental Policy Act" means the federal law located at 42 U.S.C. Section 4311 et seq., as amended. "Notes" means the Limited Revenue Tax Increment Notes to be executed and delivered in the form set forth on Exhibit B, pursuant to Sections 3.2(1) and 3.3. It is anticipated that a separate Note will be issued with respect to each Element of the Development. "Redeveloper" means Richfield State Agency, Inc., a Minnesota corporation. "Redevelopment Property" or "Property" means the real property described as such in - Exhibit A of this Agreement. "State" means the State of Minnesota. "Tax Increment" means that portion of the real property taxes which is paid with respect to the Redevelopment Property or portion thereof which constitutes an Element which is remitted to the Authority as Tax Increment pursuant to the Tax Increment Plan, after reduction (if any) of fiscal disparities' contributions which are mandated by state law to be made with respect to any parcel. "Tax Increment Act" means the statutes located at Minnesota Statutes Section 469.174 through 469.179, of the Economic Development Act. "Tax Increment Plan" means the tax increment financing plan adopted by the City in connection with the creation of the Tax Increment District and as such may be modified and amended from time to time. "Tax Official" means any City or county assessor; County auditor; City, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Unavoidable Delays" means unexpected delays which are the direct result of adverse weather conditions, shortages of materials, strikes, other labor troubles, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other judicial action, directly results in delays, or acts of any federal, state or local governmental unit other than those provided for under this Agreement or any other cause or force majeure beyond JBD-151646 3 RC 125-182 1 the control of Redeveloper which directly results in delays, provided, however, that adverse market conditions or tenant actions affecting the marketability or profitability of the Minimum Improvements, or the inability to secure financing of the Minimum Improvements shall not constitute Unavoidable Delays. Section 1.2. Exhibits. The following exhibits are attached to and made a part of this Agreement. A. Redevelopment Property Legal Description; B. Limited Revenue Tax Increment Notes ("Notes"); C. Certificate of Completion; and D. Assessment Agreement (It is anticipated that a separate Assessment Agreement will be entered into with respect to each Element of the Development. Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota; (b) The words "herein" and "hereof" and words of similar importance, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof, (c) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. r? 1BD-151646 4 RC 125-182 ARTICLE II REPRESENTATIONS Section 2.1. Representations by the Redeveloper. (01) The Redeveloper has the power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action. (02) If the conditions precedent to construction occur, . the Redeveloper reasonably believes that it has the capability to obtain necessary Equity and a Financial Commitment necessary for construction of the Minimum Improvements. (03) If the conditions precedent to construction occur, the Redeveloper will construct the Minimum Improvements described in the Concept Plans in accordance with the terms of this Agreement, the Redevelopment Plan and all local, state and federal laws and regulations. (04) The Redeveloper will exercise all reasonable efforts to obtain, in a timely manner, all required permits, licenses, and approvals and will meet in a timely manner, all lawful requirements of all local, state, and federal laws and regulations which must be obtained or met before the improvements may be constructed. (05) Redeveloper will comply in all material respects, with all applicable local, state and federal environment laws and regulations, will have obtained any and all necessary environmental reviews, licenses or clearances under, and will be in material compliance with the applicable requirements of the National Environmental Policy Act of 1969, the Minnesota Environmental Policy Act, and the Critical Area Act of 1973 and any other applicable environmental law or regulation. Redeveloper has not received notice or communication from any local, state or federal official indicating that the activities of Redeveloper may be or will be in violation of any environmental law or regulation. Redeveloper is not aware of any facts. the existence of which would cause the Redeveloper to be in violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act; Section 2.2. Representations by HRA. The HRA makes the following representations as the basis for the undertakings herein contained. (01) The HRA is authorized by law to enter into this Agreement and to carry out their obligations hereunder. (02) The HRA shall, without expense to it, cooperate in Redeveloper's efforts to obtain all federal, state, and regional agency land use, environmental or other regulatory approvals necessary to implement the Project. (03) The Project Area modification and TIF District will be considered for establishment in accordance with the procedures provided for by law. The HRA agrees to utilize its best efforts in the establishment of the modified Project Area and the creation of the District; however the Redeveloper agrees to release the HRA, its officers, agents and employees from any JBD-151646 5 RC 125-182 claims which it may have based upon failure to modify the Project Area, or to establish the District, including, without limitation any successful challenge to the modification or the District following their adoption. It is anticipated that, if adopted, the first tax increment (partial) will be initiated by the HRA in 2001. • JBD-151646 6 RC 125- 182 ARTICLE 11.5 PRECONDITIONS Section 2.5.1. Initial Preconditions to Acquisition. Not later than 60 days from the date of this Agreement, (45 days for the Concept Plans), unless such date is extended by the mutual written consent of the parties: Subdivision 1. The parties shall have reached written agreement on the following matters: (a) the Concept Plans, which will include agreement relative to the proposed subdivision of the Redevelopment Property and creation of the Elements of the Development; (b) the location and nature of all public improvements to be constructed to serve and benefit the Development, together with the timing and responsibility for their construction and cost and the phase out of existing public improvements; (c) the location, layout and design of any interior traffic circulation systems, including their interface with adjacent roadways, and the timing for construction of the same; (d) the landscape plan and the timing for installation of the same; (e) tree protection during construction (redeveloper to be responsible for the cost of a survey and protection plan.) (f) a schedule for commencement and completion of construction of each Element of the Development, and all public improvements to serve the Development; (g) the condition of the Redevelopment Property with respect to environmental contaminations and pollution; and the obligations and responsibilities of the parties with respect to remediation, if any; (h) the nature, location and cost of removal or relocation any utilities currently located on the Redevelopment Property which are required to be removed or relocated due to construction of the minimum improvements and the allocation and financing of the cost of such activities; and (i) the conditions for the release of Redeveloper following the assignment of an Element described in Section 9.4(b). (j) to the extent required by law, the number of new jobs and the average wages for the new jobs created by the Development. JBD-151646 7 RC 125-182 (k) the form of the Tax Increment Plan, which plan, following agreement as to form, shall have been considered and adopted by the City. (1) the program of mediation of matters described in Section 3.2(b) (m) the form and level of public assistance which is necessary in order to facilitate the development contemplated in the Concept Plan (The "But For" Analysis), and any amendments to this Agreement which might be necessary in connection with providing the assistance (n) the amount and nature of the local match; and contingencies to providing the local match (o) a plan for personal protection and safety for users of the parking ramps to be constructed as part of the Minimum Improvements. Subd.2. The following actions will have been taken (a) Not later than 10 days following the date of this Agreement the Redeveloper will have retained the services of a relocation consultant acceptable to the HRA. The relocation consultant will assist the Redeveloper in providing relocation services and information concerning relocation benefits to individuals and entities who will be displaced as a result of the Redeveloper" acquisition activities. The services and benefits to be provided by the Redeveloper shall conform to those which would be provided by the HRA if it were acquiring the properties. All fees and charges for the services of the consultant and all payments of relocation benefits shall be the sole obligation of the Redeveloper. The Redeveloper shall be responsible for timely notification of all affected persons concerning the services and benefits available to them and the process to follow to obtain such services and benefits. In the event that the parties are unable to reach agreement or take the required action on all the matters in the time described above or in the event that the Tax Increment Plan has not been adopted, either party may terminate this Agreement by written notice to the other party whereupon this Agreement shall, notwithstanding anything in Article X hereof to the contrary, be null and void, and the parties shall be relieved of any further obligations hereunder. • JBD-151646 RC 125-182 ARTICLE III SITE ASSEMBLY Section 3.1. Statement of Intent. It is the intention of the parties that the tracts of land which comprise the Redevelopment Property not currently owned by Redeveloper are to be acquired through a combination of direct acquisitions by the Redeveloper (including acquisitions which have been previously commenced by Redeveloper) and acquisitions by the HRA followed by conveyances to the Redeveloper. It is further the intention of the parties that, whenever possible, direct acquisition by the Redeveloper is preferred. It is further the understanding of the parties that in.the acquisition of the Redevelopment Property and related activities the HRA's obligation shall only be to proceed in good faith and to utilize its best efforts. Section 3.2. Acquisition. The Redeveloper agrees to continue and diligently pursue such acquisition activities following the execution of this Agreement. Not later than 120 days following execution, unless extended by the parties, the Redeveloper will provide the HRA with the following information together with supporting material. all of which shall be in writing and reasonably satisfactory to the HRA: (a) That it has taken reasonable steps to acquire all the Redevelopment Property and has complied with the provisions of Section 11.7. (b) That any owner who has requested mediation in accordance with the terms of a mediation program agreed to by the parties pursuant to Section 2.5.1(1) has been afforded the opportunity for mediation with respect to the purchase price to be paid for such owner's property. (c) That financing, whether in the form of Equity, Financial Commitments or otherwise, necessary for the acquisition of the Redevelopment Property and for the construction of the Development is in the reasonable judgment of the Redeveloper likely to be available. (d) That Redeveloper, based upon preliminary environmental reviews, including, without limitation, an EAW to be undertaken on the Redevelopment Property by Redeveloper, and other inspections of the Property, is not aware of any conditions, environmental or otherwise, that would prevent Redeveloper from proceeding with the acquisition and development of the Property. (e) A list of the properties with respect to which purchase agreements or options to purchase have been executed. (f) A list of lands with respect to which such agreements or options have not been executed. (g) A request that the HRA undertake condemnation activities, and the parcels to which such activities relate, together with a deposit deemed adequate by the HRA to cover the 40 fees and expenses of those retained by the HRA to provide legal, survey, appraisal, relocation and title services in connection with such acquisition. The request shall also include (i) an acknowledgment by the Redeveloper that if the HRA does approve the request, the Redeveloper's obligations pursuant to Section 3.3 shall be applicable; and (ii) the form of written JBD-151646 9 RC 125-182 agreement and security, reasonably acceptable to the HRA in the nature of the agreement described in Section 3.3. The request shall also include a statement of whether it is necessary for the HRA to proceed in accordance with Minnesota Statutes, § 117.042. Failure to make this statement as a part of the initial request does not preclude the Redeveloper from subsequently making it. (h) If the Redeveloper supplies the items contained in paragraphs (a)-(g) above, and if all of the preconditions contained in Section 2.5.1 have been met or the time for performance extended, the HRA agrees that it will, in good faith, and following a review and verification of the same, and following delivery to it of an agreement applicable to the Property in. the nature of the agreement described in Section 3.3, undertake the steps necessary to acquire fee simple title to the portions of the Property to which the request relates, and in accordance with Minnesota Statutes, § 117.042 to the extent requested. If the Redeveloper fails to supply the items contained in paragraphs (a) - (g) above within the time described above, either party may terminate this Agreement by written notice to the other whereupon this Agreement shall be null and void, and the parties will be relieved of further obligations hereunder. (i) The acquisition of the requested portions of the Property shall be discontinued at any time prior to the date that title and possession has passed to the HRA that any of the following occur: 1. The Redeveloper is in default of any of its obligations under this Agreement or the agreement contemplated in Section 3.3. It is understood that no notice or cure periods are applicable to Article III except as specifically stated herein. 0 2. The Redeveloper fails to make any payment or deposit with respect to the acquisition of the Property or the payment of relocation benefits therefore. 3. The HRA determines in the exercise of its reasonable judgment that the Redeveloper's obligation to pay for the acquisition of the Property, or to pay relocation benefits is not adequately secured, and the Redeveloper fails, with 30 days of a written request by the HRA to provide security deemed adequate by the HRA. 4. The HRA determines that, due to material adverse market conditions, material adverse soil or environmental conditions, title problems, or inability to obtain any governmental licenses or approvals necessary for the effective development of the Property, (including, without limitation, vacation of streets lying within she boundaries of the Redevelopment Property), following prompt and diligent efforts to obtain the same, proceeding with the Development on the Redevelopment Property is not economically or practically feasible. 5. Actions by governmental entities have in the reasonable judgment of the HRA have placed material physical limitations on the capacity of the Property to be developed as contemplated, and in accordance with the Concept Plan. 6. The costs of acquisition, including land, relocation, fees and other expenses to be paid by the Redeveloper exceed, $2,500,000, it being understood that the HRA shall have no obligation to pay or assist the Redeveloper in the payment of any such costs. JBD-151646 10 RC125-182 Use of the Minnesota Statutes § 117.042 procedure may be discontinued for the failure of the Redeveloper to make any payment to the HRA to cover a court deposit of the type and within the time period described in Section 3.3. The HRA shall, upon becoming aware of the reasons stated above and verifying the same with the Redeveloper, immediately discontinue its acquisition activities, and thereafter, the Redeveloper's sole obligation shall be to reimburse the HRA for the costs and expenses incurred by the HRA in connection with its acquisition activities, and to indemnify and save harmless the HRA and the City, their officers, agents and employees and to defend the same from any claim or cause arising out of or occasioned by the discontinuance of such acquisition activities, and the HRA's sole remedy shall be to obtain such reimbursement and indemnify from the Redeveloper. The HRA may utilize any security available to it in this Agreement as security for Redeveloper's obligations under this Paragraph, including, without limitation, security provided by Redeveloper under Section 33(b)(3), 3.2(g), and 3.2(x) and liens placed on the Redevelopment Property pursuant to Section 3.3(f). The HRA agrees that it will accept other security in lieu of the security described in the last paragraph if it determines, in the exercise of its reasonable judgment, such other security will furnish an adequate level of protection. 0) Redeveloper Liability. Notwithstanding anything herein to the contrary, in the event the Redeveloper shall fail or refuse to perform its obligations under this Agreement, then the HRA, upon written notice thereof to Redeveloper, may immediately discontinue its acquisition activities, and thereafter, the Redeveloper's sole obligation shall be: i) to reimburse the HRA for the costs and expenses incurred by the HRA in connection with its acquisition activities; ii) to indemnify and save harmless the HRA and the City and their officers, agents and employees and to defend the same from any claim or cause arising out of or occasioned by the discontinuance of such acquisition activities and the HRA's sole remedy shall be to obtain such reimbursement and indemnity from the Redeveloper. (k) Once the HRA has acquired title and possession to the Property (as requested), the Redeveloper shall be obligated unconditionally to comply with all of its obligations hereunder to acquire and develop the Property; and any limitations to the Redeveloper's liability contained in this paragraph shall not be applicable. The Redeveloper further agrees to indemnify and save harmless the HRA, the City and their officers, agents and employees from any claims or causes arising out of as occasioned by the failure or refusal of the Redeveloper, for any reason, to acquire the said Property following the transfer of title and possession to the HRA. (1) Reimbursement of the expenses incurred by the Redeveloper in connection with acquisition of the Property shall be made in accordance with and subject to the terms of a note or notes in substantially the form of the attached Exhibit B ("Notes"). Payment according to its terms will, except as expressly otherwise provided in this Agreement, constitute the sole and exclusive manner of reimbursement to the Redeveloper for its expenditures in connection with the Property. Section 3.3. Additional Limitations on HRA Obligation. JBD-151646 11 RC 125-182 (a) Not later than five days prior to any date on which the HRA is required to deposit any amount into court in order to obtain title and possession to portions of the Property or to make relocation benefit payments to persons entitled to such payments, Redeveloper shall deliver to the HRA funds payable to the HRA in the amount of any such deposit or payment. The HRA shall then have the right, and subject to the terms and conditions hereof, the obligation to use such funds to make such deposit or such payments. The HRA shall have no obligation to repay such funds received deposited or paid pursuant to this Agreement should the redevelopment covered by this Agreement not be completed for any reason, other than the failure of the HRA to perform its obligations hereunder. (b) The obligation of the HRA to make the deposit and obtain title to and possession of any of the parcels which make up the Property shall, unless waived in writing by the HRA, be specifically subject to the following: 1. Redeveloper is not in default of any provisions of this Agreement and all amounts due and payable as provided above in this Section have been paid. 2. Redeveloper has reviewed the condition of title as such is to be acquired by the HRA and notified the HRA in writing that such condition of title is satisfactory. 3. The Redeveloper has provided the HRA with an undertaking in the form of a written agreement, and with security all reasonably acceptable to the HRX-- which will assure payment by the Redeveloper of. 0 (i) any condemnation award for the Property in excess of the previously deposited sums; (ii) any relocation benefits which are not yet paid; (iii) [Blank] (iv) the obligation of Redeveloper provided for in 3.2(g); (vi) the obligations of Redeveloper provided for in 3.2(i); (vi) [Blank] (vii) [Blank]. Such undertaking and security is to remain in affect according to its terms, and in any event, until suitable and adequate substitute security is agreed to by the parties. 4. The Redeveloper has furnished the HRA with written notice, reasonably acceptable to the HRA, indicating that, based upon Redeveloper's own investigation it is satisfied in all respects with.the nature and condition of the Property, and accepts the same AS IS and WHERE IS. JBD-151646 12 RC 125-182 5. The HRA is satisfied that the Redeveloper has obtained, or will be obtaining, fee simple title to any portions of the Property which are not the subject of the condemnation. 6. Redeveloper has furnished the HRA with written evidence reasonably acceptable to the HRA that it has funds, whether in the nature of Equity or Financial Commitment or otherwise which are sufficient for construction of the Minimum Improvements. 7. [Blank] 8. Redeveloper has supplied the HRA with a signed written statement, reasonably satisfactory to the HRA, to the effect that, to the best of Redeveloper's knowledge, upon Closing, there will be no remaining matters which would affect the prompt commencement of construction of the Minimum Improvements and the continuation of construction to completion all in accordance with the schedule for commencement and completion of construction, described in Section 2.5.1. The statement must also acknowledge that the Redeveloper understands that the HRA is relying on the statement as a inducement to acquire and convey the Property. 9. [Blank] 0 10. [Blank] 11. The HRA has reviewed and approved the Concept Plan. 12. The parties have reached written agreement regarding the location and nature. and cost of any public improvements to be located on the Redevelopment Property. 13. The Redeveloper has furnished the HRA with an agreement acceptable to the HRA whereby the Redeveloper agrees to indemnify and save harmless the HRA, its officers, agents, and employees from any claim, cause, regulatory order or other obligation ensuing out of or occasioned by the existence of any contaminant, pollutant or hazardous substance in, on or under the Property. (c) Following the date on which the HRA has obtained title and possession of the Property it shall convey the same to the Redeveloper by quit claim deed. Such conveyance shall take place not later than 10 days following the date that the HRA has acquired the Property, and the Redeveloper has furnished the HRA with written evidence reasonably satisfactory that all the provisions of paragraph 3.3(b) above remain true; and all governmental approvals licenses and permits needed for commencement of construction of the Minimum Improvements have been obtained. The deed shall contain a restriction valid until the issuance of a Certificate of Completion for an Element which allows the Property to be developed only in accordance with the Concept Plans. 1BD-151646 13 RC 125-182 (d) Reimbursement of Redeveloper's Expenses. It is the intention of the parties that the funds which Redeveloper has expended in connection with and related to the acquisition of the Property should be reimbursed to the extent and in the manner hereinafter provided. It is further understood that Redeveloper would not otherwise have undertaken such expenditures absent reimbursement. Accordingly, at closing, the HRA shall execute and deliver to the Redeveloper a note or notes in substantially the form of the attached Exhibit B ("Note"). The Note shall be paid according to their terms and will constitute the sole and exclusive source of reimbursement to the Redeveloper for its expenditures. • ]BD-151646 14 RC125-182 ARTICLE IV CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 4.1. Agreement to Construct and Maintain. Subject to the acquisition of the Redevelopment Property, the Redeveloper agrees that it will construct the Minimum Improvements on each Element in accordance with the approved Concept Plans; and thereafter maintain and keep the same in good repair for the term of any Note issued for the Element on which the Minimum Improvements are located.. Section 4.2. Demolition. The Redeveloper shall, at its sole expense, raze and remove all structures on Redevelopment Property including any abandoned City utilities. Section 4.3. Soil Correction - Contamination. As between the parties hereto and the City, the Redeveloper shall have the sole responsibility and bear the cost necessary to make any necessary soil correction or to remedy or otherwise respond to the existence of any contamination or pollution in, on or under the Redevelopment Property. Neither the HRA nor the City has made any representations concerning the nature of soils, the suitability of such soils for the Minimum Improvements, the existence of contaminants or pollutants, or the cost of correcting any unsuitable soil conditions, contamination or pollution.. Section 4.4. Concept Plans. Within 45 days after execution of this Agreement by the - Redeveloper, the Redeveloper shall submit schematic Concept Plans including a marketing plan and tenant mix projections and the anticipated dates for commencement and completion of construction. The Concept Plans shall depict the Minimum Improvements and shall be in conformity with this Agreement. The HRA reserves the unrestricted right to reject the Concept Plans. Such Concept Plans shall, in any event, be deemed approved unless rejected in writing by the HRA, in whole or in part. Such rejection shall set forth in detail the reasons therefor, and shall be made within twenty (20) days after the date of their receipt by the HRA. If the HRA rejects the Concept Plans in whole or in part, the Redeveloper shall submit new or corrected Concept Plans within twenty (20) days after written notification to the Redeveloper of the rejection. The provisions of this Section relating to approval, rejection, and resubmission of corrected Concept Plans shall continue to apply until the Concept Plans have been approved by the HRA. If the Redeveloper desires to make any material change in the Concept Plans after their approval by the HRA, the Redeveloper shall submit the proposed 'change to the HRA for its approval. If the Concept Plans, as modified by the proposed change, conform to the requirements of this Section with respect to such previously approved Concept Plans, the HRA shall approve the proposed change and notify the Redeveloper in writing of its approval Such change in the Concept Plans shall, in any event, be deemed approved by the HRA unless rejected, in whole or in part, by written notice by the HRA to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made within twenty (20) days after receipt of the notice of such change. is Final construction plans and specifications shall be reviewed by the City Building Official in connection with issuance of building permits. No building permit may be issued if 1BD-151646 15 RC125-182 the final construction plans and specifications materially depart from the approval Concept Plans. 10 Section 4.5. Commencement and Completion of Construction. The Redeveloper shall commence and complete construction of the Minimum Improvements in accordance with the time schedule agreed upon by the parties pursuant to Section 2.5.1(e). The Redeveloper shall not be considered in breach of, or default in its obligations with respect to the commencement and completion of construction of the Minimum Improvements, if the occurrence of an Unavoidable Delay requires extension of the time or times for performance of the Redeveloper with respect to construction of the Minimum Improvements provided, that the Redeveloper shall, within fifteen (15) days after the beginning of any such Unavoidable Delay, have notified the HRA thereof in writing, and of the cause or causes thereof, and further provided that the excused delay in performance may not exceed the duration of the Unavoidable Delay, and further provided that such excused delay may not operate to relieve Redeveloper of its obligation to complete within the time period provided for in the Assessment Agreement. Section 4.6. Construction Reports. During construction the Redeveloper shall make reports at such times and in such detail as may be reasonably requested by the HRA concerning the progress of construction. Section 4.7. Certificate of Completion. Promptly after notification by the Redeveloper of completion of the Minimum Improvements for each Element contemplated by the Concept Plans, the HRA shall inspect the construction to determine whether the Minimum Improvements for such Element are completed substantially in accordance with the terms of this Agreement. If the HRA is satisfied, and if all relevant final approvals have been obtained from the City on matters of platting, zoning, off street parking signage, drainage and landscaping for the portion of the Redevelopment Property to which the Certificate relates, it will furnish the Redeveloper with a Certificate of Completion for such Element. Such certification by the HRA shall, except as further provided in this Section 4.7, be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement, and in the Deed with respect to the obligations of the Redeveloper to construct the Minimum Improvements with respect to the Element for which the certificate relates. The certification provided for in this section shall be in recordable form. If the HRA shall refuse or fail to provide the Redeveloper a certification in accordance with the provisions of this Section 4.7, the HRA shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of this Agreement, or are otherwise in default, and what measures or acts it will be necessary, in the reasonable opinion of the HRA, for the Redeveloper to take or perform in order to obtain such certification. JBD-151646 16 RC125-182 ARTICLE V PUBLIC IMPROVEMENTS Section 5.1. Matters pertaining to public improvements shall be addressed in the separate agreement of the parties provided for in Section 2.5.1(b). 1-1 • 1BD-151646 17 RC125-182 ARTICLE VI INSURANCE Section 6.1. Insurance. Prior to Closing on any portion of the Redevelopment Property, the Redeveloper shall provide evidence of insurance, for that portion, covering property, casualty, workers compensation, fire, indemnity, general liability, employer's liability and such other coverages and in such amounts as the HRA shall reasonably require. The Redeveloper further agrees that notwithstanding any provision in this Article to the contrary, it will keep and maintain in full force and effect throughout the term of Notes, insurance policies insuring the Minimum Improvements against casualty loss in the amount at least equal to the greater of- (i) their replacement value, or (ii) the amount of any mortgage indebtedness. • • JBD-151646 18 RC125-182 ARTICLE VII TAX INCREMENT Section 7.1. The HRA has determined that it will be necessary to provide assistance to the Development in the form of Tax Increment for certain costs. The level of such assistance and the specific qualifying costs and activities will be determined in accordance with the process outlined in Section 2.5.1, and in the Tax Increment Financing Plan. It is understood that all forms of Tax Increment assistance will be payable solely by, and according to the terms of the Notes issued by the HRA to the Redeveloper under this agreement. Section 7.2. Notwithstanding any provision in this Agreement to the contrary, the HRA shall not be obligated to provide assistance in the form of Tax Increment or otherwise for any purpose if the Redeveloper does not acquire title to and possession of all of the separate tracts which comprise the Redevelopment Property within six months from the date of this Agreement, or such later date as the parties may mutually agree in writing. • • JBD-151646 19 RC 125-182 ARTICLE VIII FINANCING Section 8.1. Limitations Upon Encumbrance. Prior to the completion of the Minimum Improvements, as certified by the HRA pursuant to Section 4.7 of this Agreement, neither the Redeveloper nor any successor in interest to the Redevelopment Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Redevelopment Property or any part thereof, -whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attached to the Redevelopment Property or any part thereof, except only for the purpose of obtaining funds to the extent necessary for developing the Minimum Improvements. Section 8.2. Copy of Notice of Default to Lender. Prior to the issuance of a Certificate of Completion, whenever the HRA shall deliver any notice or demand to the Redeveloper with respect to any breach or default by the Redeveloper in its obligations under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to each holder ("Holder") known to the HRA of any mortgage or other financing agreement authorized by this Agreement by sending such notice to last known address of the Holder as shown in the records of the HRA. Section 8.3. Lender's Option to Cure Defaults. After any breach or event of default referred to in Section 10.1 hereof, each Holder shall (insofar as the rights of the HRA are concerned) have the right for a period of ninety (90) days, at the Holder's option, to cure or remedy such breach or event default to the extent that it relates to the part of the Redevelopment Property covered by its financing and to add the cost thereof to the debt and the lien of its financing, provided, that if the breach or event of default is with respect to construction of the Minimum Improvements, nothing contained in this Section or any other section of this Agreement shall be deemed to permit or authorize such Holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Minimum Improvements (beyond the extent necessary to conserve or protect such Improvements or construction already made) without first having expressly assumed the Redeveloper's obligations described in Section 10.2 hereof by written agreement reasonably satisfactory to the HRA to complete the Minimum Improvements or the part thereof to which the lien or title of such holder relates, provided further, however, that the HRA will not unreasonably withhold its consent to any changes in the Minimum Improvements which are requested by th.e Holder if the requested changes do not alter the basic design of the Minimum Improvements or result in a decrease of the Market Value below the amounts estimated by the parties as set forth in section 4.4. (It being understood that such consent shall in no way act to bind or influence the power of the City, in the exercise of its governmental authority not to approve any proposed changes or alterations to the Minimum Improvements. Any such Holder who shall perform the Redeveloper's obligations under Section 4.6 hereof, relating to the Redevelopment Property or applicable part thereof, shall be entitled, upon written request made to the HRA, to a certification by the HRA to such effect in the manner provided in Section 4.8 of this Agreement. Section 8.4. HRA's Option to Cure Default. Prior to the issuance of a Certificate of Completion, if the Redeveloper is in default under any financing authorized pursuant to Article VIII of this Agreement, the Holder, prior to exercising any of its remedies, shall notify the HRA JBD-151646 20 RC 125-182 in writing by sending it a copy of any notice of default sent to the Redeveloper. If, within thirty (30) days after receipt of said notice, the HRA cures the default, then the Holder shall pursue none of its remedies under the financing based upon the said default of the Redeveloper. Section 8.5 Subordination. In order to facilitate the obtaining of construction or permanent financing for an Element by the Redeveloper, the HRA agrees to consent to the assignment of this Agreement (to the extent applicable to such financed Element) and a note or notes, and to subordinate its rights under this Agreement to the Mortgage evidencing any such construction or permanent financing; but only if the HRA determines in the exercise of its reasonable judgment it is in its best interest to do so. • • JBD-151646 21 RC125-182 ARTICLE IX PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 9.1. Representation as to Development. The Redeveloper represents and agrees that its undertaking pursuant to the Agreement are, and will be used, for the purpose of development of the Redevelopment Property and not for speculation in land holding. The Redeveloper further recognizes that, in view of (a) the importance-of the development of the Redevelopment Property to the general welfare of the -community; and (b) the substantial financing and other public aids that have been made available by the City and the HRA, for the purpose of making such development possible; that the qualifications and identify of the Redeveloper are of particular concern to the community and the HRA. Any significant change with respect to the identify of the Redeveloper or the purchase of Redeveloper's interest by any other party or parties is for practical purposes a transfer or disposition of the property then owned by the Redeveloper, the Redeveloper further recognizes that it is because, of such qualifications and identify that the HRA is entering into this Agreement with the Redeveloper and, in so doing, is further willing to accept and rely on the obligations of the Redeveloper for the faithful performance of all undertakings and covenants hereby then to be performed. Section 9.2. [Blank]. Section 9.3. Prohibition Against Transfer of Property and Assignment of Agreement. For the foregoing reasons, the Redeveloper represents and agrees that: (01) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to making the Minimum Improvements under the Agreement, and any other purpose authorized by the Agreement, prior to the completion of construction of the Minimum Improvements the Redeveloper (except as so authorized) has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA. (02) The HRA shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in the Agreement by the Redeveloper (or, in the event the transfer is of or relates to part of the Redevelopment Property, such obligations to the extent that they relate to such part); (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successors and assigns, and expressly for the benefit of the HRA, have expressly assumed all of the obligations of the Redeveloper under the Agreement and agreed to be subject to the terms of the Redevelopment Plan (or, in the event the transfer is of or relates. to part of the Redevelopment Property, such obligations„ conditions, and restrictions to the extent that they relate to such part); provided, that the fact that any transferee of, or any other successor in interest whatsoever the JBD-151646 22 RC 125-182 reason, shall have assumed such obligations or agreed, shall not (unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA) relieve or except such transferee or successor of or from such obligations, conditions, or restrictions, or deprive or limit the HRA or with respect to any rights or remedies or controls with respect to the Redevelopment Property or the construction of the Minimum Improvements; it being the intent of this, together with other provisions of the Agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property or any part thereof, of any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or_ practically, to deprive or limit the HRA of or with respect to any rights or remedies or controls provided in or resulting from the Agreement with respect to the Property and the construction of the Minimum Improvements that the HRA would have had, had there been no such transfer or change; (iii) there shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfer, and if approved by the HRA its approval shall be indicated to the Redeveloper in writing. (03) Certain Transfers Exempted. Notwithstanding the prohibitions against transfer contained in this section, and the rights granted the HRA under Section 9.5, the Redeveloper shall have the right to transfer ownership interests in the Redeveloper among the current shareholders, and to transfer ownership interest in the Redeveloper, this Agreement, or the Redevelopment Property to family members of Stanley Kirchner or to entities controlled by Stanley Kirchner or his family members, for tax and/or estate planning purposes, or due to the death or incapacity of Stanley Kirchner. Such transfer shall be subject to the provisions of Section 9.3(04). (04) In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by the Agreement or otherwise with respect to the construction of the Minimum Improvements, or from any of its obligations with respect thereto. The HRA may, however, in its reasonable discretion exercised in accordance with the standards and requirements of Section 9.3(02) relieve Redeveloper if they present a transferee or assignee acceptable to the HRA. Section 9.4. Qualifications. Notwithstanding anything in this Article IX to the contrary, the Authority and Redeveloper acknowledge and agree as follows: (a) The Development will be comprised of several Elements, some of which may be developed and constructed by others. The Redeveloper intends and shall have the right to convey certain portions of the Redevelopment Property to other entities before construction of an Element thereon. The HRA consents to such transfers, provided that notwithstanding any assumption by such transferees of the Redeveloper's obligations hereunder, the Redeveloper will remain fully obligated under this Agreement with respect to the Element so transferred, and nothing in this paragraph will be deemed to constitute approval or release of the Redeveloper as described in this Article. The Redeveloper will be released from its obligations with respect to such transferred Elements upon compliance with and subject to the terms of paragraph (b) below. JBD-151646 23 RC125-182 (b) Upon issuance of the Certificate of Completion for any Element of the Minimum Improvements, the Redeveloper may transfer or assign the subject Element and/or the 40 Redeveloper's rights and obligations under this Agreement with respect to such Element without the prior written consent of the City or the Authority; provided that: (i) the transferee or assignee is bound by all the Redeveloper's obligations hereunder with respect to the Element transferred. The Redeveloper shall submit to the Authority written evidence of any such transfer or assignment, including the transferee or assignee's express assumption of the Redeveloper's obligations under this Agreement. If the Redeveloper fails to provide such evidence of transfer and.assumption, the Redeveloper shall remain bound by all obligations with respect to the subject Element under this Agreement; and (ii) upon compliance with clause (b)(i) above (whether the transfer occurred before or after issuance of the Certificate of Completion), the Redeveloper shall be released from its obligations under this Agreement with respect to the Element transferred, but only to the extent provided for in that separate agreement described in Section 2.5.1(h). (iii) the release of Redeveloper's obligations shall not include a release of Redeveloper's obligations under Section 33(b) unless the HRA reasonably determines that equally sufficient security is being obtained from the transferee. Section 9.5. Information as to Stockholders or Partners. In order to assist in the effectuation of the purposes of this Article IX of this Agreement, the Redeveloper agrees that-- during the period between the execution of the Agreement and completion of the Minimum Improvements as certified by the HRA, (a) the Redeveloper will promptly notify the HRA of any and all changes whatsoever in the ownership of stock or partnership interests, legal or beneficial which in the aggregate exceed ten percent (10%) of the issued stock or partnership interests in Redeveloper, or of any other act or transaction involving or resulting in any change in the ownership or stock or partnership interests of such Redeveloper or in the relative distribution thereof, which in the aggregate exceeds ten percent (10%) of the issued stock or partnership interests of Redeveloper, and (b) Redeveloper shall, at such time or times as the HRA may request, furnish the HRA with a complete statement, subscribed and sworn to by the President, general partner, or other executive officer of Redeveloper, setting forth all of the stockholders or partners of Redeveloper and the extent of their respective holdings„ and in the event any other parties have a beneficial interest in such stock or partnership interest, their names and the extent of such interest, all as determined or indicated by the records of Redeveloper, by specific inquiry made by any such officer, of all parties who on the basis of such records own ten percent (10%) or more of the stock or partnership interest of Redeveloper, and by such other knowledge or information as such officer shall have. Section 9.6. Approvals. Any approval required to be given by the HRA under this Article IX of this Agreement may be denied only in the event that the HRA reasonably determines that the performance of the obligations of Redeveloper under this Agreement will be materially impaired by the action for which approval is sought. At the HRA's request, the Redeveloper shall provide to the HRA's attorney for privileged review on behalf of the HRA financial information as to any proposed general partners, or controlling stockholders of proposed assignees or transferees, and financial information as to any such partnership or corporation. JBD-151646 24 RC 125-182 Section 9.6. Release and Indemnification Covenants. (a) The Redeveloper releases from and covenants and agrees that the Authority and the City and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the Authority and the City and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct of the following named parties, the Redeveloper agrees to protect and defend the Authority and the City and the governing body members, officers, agents, servants and employees thereof, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (c) Except where arising from the negligent act or omission of the following named parties, the Authority and the City and the governing body members, officers, agents, servants and employees thereof shall not be liable for any damage or injury to the persons or property of the Redeveloper or its officers, agents, servants or employees or any other person who may be about the Redevelopment Property, Minimum Improvements due to any act of negligence of any person. (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority in the individual capacity thereof. • JBD-151646 25 RC125-182 ARTICLE X EVENTS OF DEFAULT Section 10.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events: (01) Failure by the Redeveloper to pay when due any payments required to be paid or performing any actions required to be performed under this Agreement, or under the agreement contemplated in Section 2.5.1 or Article III. (02) Subject to Unavoidable Delay, failure by the Redeveloper to observe and substantially perform any covenant, conditions, obligation, or agreement on its part to be observed or performed hereunder. (03) If the Redeveloper shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of creditors, or shall consent to the appointment of a receiver of themselves or of the whole or any substantial part of the Redeveloper Property. (04) If the Redeveloper shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws. (05) If the Redeveloper, on a petition in bankruptcy filed against them, be adjudicated a bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of Redeveloper, a receiver of Redeveloper or of the whole or substantially all of its property, or approve a petition filed against Redeveloper seeking reorganization or arrangement of Redeveloper under bankruptcy laws, and such adjudication, order, or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof. (06) If the Redeveloper is in default under any mortgage in favor of the HRA and fails to cure any such default within thirty (30) days after written demand from the HRA to do so. (07) If the real estate taxes are not paid when due. Section 10.2. Remedies on Default. Whenever any Event of Default referred to in Section 10.1 of this Agreement occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, but only after at least thirty (30) days notice to the Redeveloper and its failure to cure (unless a different cure period is provided with respect to specific defaults under this Agreement) or such longer cure period if reasonably required and the actions to cure have been taken within such 30-day period, find the Redeveloper in default (Default) and take any one or more of the following actions: (01) Suspend its performance under the Agreement until it receives assurances from the Redeveloper or mortgagee reasonably deemed adequate by the HRA, that the Redeveloper will cure the default and continue performance under the Agreement. JBD-151646 26 RC 125-182 (02) Cancel pursuant to Minnesota Statutes Section 559.21, and rescind the Agreement, in which case the 30 day cure period shall commence with notice of cancellation. (03) Withhold the Certificate of Completion if the Event of Default relates to the failure of the Redeveloper to complete the improvements as provided in this Agreement. (04) Subject to the limitations stated in Article III take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement or covenant of the Redeveloper under this Agreement. Provided, however, that any exercise by the HRA, its successors or assigns, of its right or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any mortgage authorized by this Agreement and (b) any rights or interests provided in this Agreement for the protection of the Holder of such mortgages. Notwithstanding any provision in this Section to the contrary, it is understood that with respect to a default which relates to an Element, the HRA's remedies under this Agreement following conveyance of the Redevelopment Property to the Redeveloper, and except for the security described I Section 3.2(b)(3), shall be limited to i) the cancellation of any Note issued with respect to that Element and ii) if prior to the Commencement of Construction of the Element, the return of title to the portion of the Redevelopment Property which contains tale - Element. Redeveloper agrees to reconvey such portion upon default and following failure to cure; and agrees that until the issuance of a Certificate of Completion for that Element, and without the consent of the HRA, the HRA's right to, reconveyance its interest in the land reconveyed shall be free and clear of any liens, encumbrances or other interests. The transfer of such portion of the Redevelopment Property to the HRA shall not discharge the Redeveloper's obligation under Sections 3.20) and 3.3(b) with respect to that parcel. Section 10.2.1. Right to Develop the Project with Others. In the event that this Agreement is terminated by the HRA prior to the closing on any phase upon any breach by the Redeveloper, or in the event the HRA forecloses on any lien provided for in this Agreement, the HRA shall have the further right to proceed with the redevelopment of the portion of the Redevelopment Property to which the termination relates or any part thereof with any contractor or any other individual or entity selected by the HRA. The HRA shall have the right to obtain and use, at no cost to them, all plans, specifications, studies, reports and other data prepared by the Redeveloper or at the Redeveloper's direction for such portion of the Redevelopment Property. It is expressly agreed that the consideration for rights conferred upon the City and the HRA under this Section 10.2.1 including business opportunity and other valuable consideration are independently adequate to create a binding obligation under this Section 10.2.1 and that such obligation shall survive the cancellation, rescission, or termination of this Agreement. Section 10.3. No Remedy Exclusive. Except as provided in Article III, no remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. Except as provided in Section 10.4 of this Agreement, no delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or JBD-151646 27 RC 125-182 shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Redeveloper to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article X. Section 10.4. No Additional Waiver Implied by One Waiver. In the event any obligation contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 10.5 Qualifications. Notwithstanding anything herein to the contrary, the HRA and Redeveloper acknowledge and agree as follows: (a) The parties anticipate that certain Elements of the Development will be transferred to other entities in accordance with Section 9.4 hereof and that the Redeveloper will retain ownership and control of other Elements. The Redeveloper will remain obligated with regard to all Elements unless release in accordance with Section 9.4. (b) Nevertheless, a default with respect to one Element will not give rise to any remedies hereunder with respect to any other Element. (c) Consistent with subsection (a) above, upon a default with respect to an Element, the HRA shall, among its remedies, have the authority to withhold payments. under the Note issued with respect to such Element, until such default is cured but shall not be entitled to withhold payments under any Note issued with respect to any other Element for which there is no uncured event of default. (d) Unless otherwise released from its obligations under this Agreement, this Section is a limitation of the remedies available to the HRA, and not as a limitation on the right to pursue the Redeveloper for a default. • JBD-151646 28 RC125-182 ARTICLE XI ADDITIONAL PROVISIONS Section 11.1. Conflict of Interests; HRA Representatives Not Individually Liable. No member, official, or employee of the HRA shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the HRA shall be personally liable to the Redeveloper, or . any successor in interest, in the event of any default or breach by the HRA or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. Section 11.2. Nondiscrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and nondiscrimination, shall be considered a part of this Agreement as though fully set forth herein. Section 11.3. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to be or shall be merged by reason of any Deed transferring any interest in any part of the Property and any such Deed shall not be deemed to affect or impair the provisions of this Agreement. Unless otherwise indicated in this Agreement, the provisions of this Agreement shall be binding upon the successors and assigns of the parties hereto. Section 11.4. Notice of Status and Conformance. The HRA agrees that from time to time, upon not less. than ten (10) days' prior written notice by Redeveloper, to execute, acknowledge and deliver, without charge, to Redeveloper or to any person designated by Redeveloper, a statement in writing certifying, to the extent true, that this Agreement is unmodified, the principal amount of any obligation herein created then unpaid, that the HRA has not received any notice of default, that to the knowledge of the HRA has not received any notice of default, that to the knowledge of the HRA no event of default exists hereunder (or if any such event of default does exist, specifying the same and stating that the same has been cured, if such be the case), that the HRA to its knowledge, has no claims against the Redeveloper hereunder, and any other information reasonably requested by the Redeveloper. It is the intention of this Section 11.4 to provide a mechanism for obtaining estoppel certificates which may be requested by Redeveloper's mortgagee. Section 11.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered it if is dispatched by. registered or certified mail, postage prepaid, return receipt requested, or delivered personally: As to the HRA: Housing and Redevelopment Authority 6700 Portland Avenue South Richfield, MN 55423 Attention: Executive Director As to the Redeveloper: Richfield State Agency, Inc. 6625 Lyndale Avenue South J BD-151646 29 RC 125-182 Richfield, MN. 55423 Attention: Steven Kirchner or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other. Section 11.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 11.7. Redeveloper Deposit. The parties acknowledge that the Redeveloper has previously deposited $ with the HRA to reimburse the HRA for costs incurred by it in connection with the preparation of this Agreement and the establishment of the District. Any portion of the deposit which is not needed for that purpose will be returned to the Redeveloper within 15 days following the Closing; or termination of this Agreement for failure to close. It is understood that the deposited amount is not a limitation on the Redeveloper's obligation to reimburse for such costs, and the Redeveloper shall pay the HRA for any such costs in excess of the deposit within 30 days of written request to do so. • is • JBD-151646 30 RC125-182 IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the 0 day and year first above written. STATE OF MINNESOTA ) ) SS COUNTY OF ) THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA By: - Its: By: Its: Executive Director RICHFIELD STATE AGENCY, INC. By: _ Its: The foregoing instrument was acknowledged before me this day of , 1998, by and , the Chairperson and Executive Director of The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1998, by , the of , a Minnesota , on behalf of the • Notary Public JBD-151646 31 RC125-182 EXHIBIT B Example UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD LIMITED REVENUE TAX INCREMENT NOTE [ELEMENT DESIGNATION] The Housing and Redevelopment Authority in and for the City of Richfield (the "Authority"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Richfield State Agency, Inc.(the "Owner"), to the extent and in the manner hereinafter provided, the original principal amount of this Note, being $ (the 'Principal Amount"), together with interest thereon accrued from the date of this Note, at the rate of interest of % per annum (the "Stated Rate"), in the amount and on the dates (the "Scheduled Payment Dates") set forth on the Payment Schedule attached as Schedule A hereto and in the amounts stated thereon (the "Scheduled Payments"). Unpaid interest accruing from the date of this Note, shall be added to principal on a semi annual basis on each August 1 and February 1 until February 1, Any payments on this Note shall be applied first to accrued interest and then to the Principal Amount in respect of which such payment is made. Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at it postal address within the United States which shall be designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the Authority, which has been issued by the Authority to aid in financing a "project," as defined in Minnesota Statutes, § 469.174, of the Authority within and for the benefit of the Tax Increment Financing District ("District"). THE NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF RICHFIELD, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE AUTHORITY, THE CITY OF RICHFIELD, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. The Scheduled Payment of this Note due on any Scheduled Payment Date is payable solely from and only to the extent that the Authority shall have received as of such Scheduled JBD-151646 RC 125-182 B-1 Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment means: Seventy-five Percent (75%) of the tax increment received from the real estate described in Schedule B the Element for years beginning with and ending in , after first deducting therefrom i) any amount needed to make a previously due but unpaid Scheduled Payment to Owner; and ii) any amount required to make a payment due but not otherwise paid to the Authority under Section 33(b) of the Development Contract. For purposes of this Note, a "Payment Date" shall mean each of the Scheduled Payment Dates set forth on Schedule A attached hereto. To the extent that on any Payment Date the Authority is unable to make a full Scheduled Payment due to insufficient Available Tax Increment (which insufficiency is not due to a failure of the Owner to pay full real estate taxes payable on the Element), such deficiency shall be deferred and paid along with future Scheduled Payments but only to the extent of Available Tax Increment. This Note shall terminate upon the earlier of i) the date when the Redeveloper has been fully reimbursed according to the terms hereof; or ii) February 1, The Authority's obligation to make any payments under this Note shall be suspended and the Authority shall have no obligation and incur no liability to make any payments hereunder immediately upon the occurrence of an Event of Default with respect to the Element under the Contract for Private Development, dated , 1998, (the "Development Contract") between the Authority and the Owner, subject to the notice and cure provisions of Section 9.2 thereof, and limited only to defaults which relate to the Element. This Note shall not be payable from or constitute a charge upon any funds of the Authority or the City of Richfield and the Authority shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increments, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the Authority or the City of Richfield or of any other public body, and neither the Authority or the City of Richfield nor any director, commissioner, council member, board member, officer, employee or agent of the Authority or the City of Richfield, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by the Owner without the prior written consent of the Authority; provided that the Owner may pledge the payments hereunder to a lender or assign the payments hereunder to a subsequent purchaser of the Development, but only with prior written notice thereof to the Authority. The Owner may also, without prior notice to or consent of the Authority transfer or assign the Note or the right to receive payments under the Note to a wholly-owned subsidiary of the Owner. This Note may be prepaid in full at any time at the option of the Authority; and may also be prepaid at the request of the Owner, but in either instance only if the Authority first J B D-151646 RC125-182 B-2 determines that sufficient tax increment is or will be generated to permit such prepayment, and the parties agree upon the actual prepayment amount. 0 This Note is issued pursuant to proper action of the Authority by Resolution and the Owner is entitled to the benefits thereof, which Resolution is incorporated herein by reference. IT IS HEREBY CERTIFIED AND RECITED that any acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law and that this Note, together with all other indebtedness of the Authority or the City of Richfield outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority or the City of Richfield to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the Board of Commissioners of the Authority has caused this Note to be executed by the manual signatures of the Chairperson and the Executive Director of the Authority and has caused this Note to be dated '199-. Chairperson Executive Director JBD-151646 Rc1 i5-1 sz B-3 SCHEDULE A SCHEDULED PAYMEN DATES I PAYMENTS I PAYSCHEDULED MENT DATES I S PAYMENTS 1BD-151646 RC 125-182 B-4 4 EXIIIBIT D Example ASSESSMENT AGREEMENT [ELEMENT DESIGNATION] THIS AGREEMENT, made on or as of the day of , 19_1 and between the Housing and Redevelopment Authority in and for the City of Richfield, a public body, corporate and politic (the "Authority") and a Minnesota (the 'Redeveloper"). WTTNESSETH, that WHEREAS, on or before the date hereof the Authority and Redeveloper have entered into a Contract for Private Redevelopment dated , 1998 (the "Redevelopment Contract"), pursuant to which the Authority is to facilitate development of certain property in the City of Richfield hereinafter referred to as the "Property" and legally described in Exhibit A hereto; and WHEREAS, pursuant to the Redevelopment Contract the Redeveloper is obligated to construct certain improvements upon the Property (the " Element"); and WHEREAS, the Authority and Redeveloper desire to establish a minimum market value for the Property and the Element constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the Authority and the Assessor for Hennepin County (the "Assessor") have reviewed the preliminary plans and specifications for the Element and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for the Property described in Exhibit A, together with the Element thereon, for ad valorem tax purposes, shall be $ as of January 2, 19 notwithstanding the progress of construction of such Element by such date. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the earlier of the following: (a) The date of receipt by the Authority of the final payment from Hennepin County of Tax Increments from TIF District No. ; (b) The date when the Note, as defined in the Redevelopment Contract has been fully paid or defeased in accordance with their terms. The event referred to in Sections 2(b) of this Agreement shall be evidenced by a certificate or affidavit executed by the Authority. 0 JBD-151646 D-1 RC 125-182 3. This Agreement shall be promptly recorded by the Authority. The Redeveloper shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Redevelopment Contract between the Authority and the Redeveloper. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this . Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the Element, or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 9. Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. JBD-151646 D-2 RC 125-182 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) By: By: Its Chairperson Its Executive Director On this day of , 1998, before me, a notary public within and for Hennepin County, personally appeared and to me personally known who by me duly sworn, did say that they are the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield (the "Authority") named in the foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was signed and sealed on behalf of said Authority pursuant to a resolution of its governing body; and said and acknowledged said instrument to be the free act and deed of said Authority. Notary Public • • • JBD-151646 D-3 RC 125-182 0 CSM INVESTORS, INC. STATE OF MINNESOTA ) ) SS. COUNTY OF ) By: Its: On this day of , 19before me, a notary public within and for County, personally appeared , the of CSM a Minnesota and acknowledged the foregoing instrument on behalf of the Notary Public • • 1BD-151646 D-4 RC125-182 L CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the values assigned to the land and improvements are reasonable. County Assessor for the County of Hennepin STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 19 by , the County Assessor of the County of Hennepin. Notary Public • is • JBD-151646 D-5 RC 125-182 EXHIBIT A of ASSESSMENT AGREEMENT Legal Description of Property JBD-151646 D-6 RC125-182 • • • HOUSING AND REDEVELOPMENT AUTHORITY is HRA Letter No. 72 Agenda November 16, 1998 Issue Statement: Analysis of concepts for private redevelopment of Lyndale Avenue South. Background: At the October 19, 1998 HRA meeting, three development firms (Boisclair, CSM and TOLD) presented their proposals for the redevelopment of Lyndale Avenue South between 76th and 77th Streets. The HRA determined that there was insufficient information regarding the tax increment financing requested by each of the proposed developments and the increment which they would be expected to generate. The HRA directed that the developers provide staff with the information and funds needed in order to conduct a TIF analysis. Boisclair has since withdrawn their proposal to construct a mix of market rate housing and retail at the site. A brief description of each of the remaining proposals is as follows: CSM CSM has revised their development concept which was presented at the October 19, 1998 HRA meeting. The current CSM site plan shows a 98-room TownePlace Hotel on the west side of Lyndale, as well as a commercial building with 22,000 sq. ft. of retail space on the first floor and 23,500 sq. ft. of office space on the second floor. On the east side of Lyndale, CSM is proposing 149 units of senior apartments and 26,700 sq. ft. of office space. A new element in the CSM proposal is the inclusion of 32 townhomes on the west side of Aldrich Avenue and 32 townhomes on the east side of Garfield Avenue. TOLD The TOLD development concept addresses the east side of Lyndale Avenue. The project would consist of a 14,000 sq. ft. single user retail building on the southern half of the block and a three story, 44,000 sq. ft. office building to its north. Summary of Staff Analysis The staff has conducted an analysis for each of the proposed projects (Attachment A). Some of the primary conclusions of this analysis are: • The CSM proposal includes both sides of Lyndale Avenue, with a total development of 9.2 acres and 465,000 sq. ft. of floorspace; while TOLD's concept includes the east side of Lyndale only, with 60,000 sq. ft. of floorspace on a 2.7 acre site. • The two concepts include nearly the same number of surface parking spaces. • • Both projects would have a similar net increase of traffic; with the TOLD concept • resulting in a 55% increase in traffic generation and a 59% increase for the CSM proposal . • The CSM concept seems to be more consistent with the Lyndale Gateway Plan. • Either proposal would require some degree of gap financing. • The CSM proposal, without the townhome element, would represent the least amount of gap financing needed for the greatest amount of development (requiring $2 million in gap financing for both sides of Lyndale versus a combined gap of $2.7 million for a development including the west portion of the CSM proposal and the TOLD development on the east side). Recommended Motion: Select the preferred proposal with provisions 1 through 5, listed below, and direct staff to negotiate a contract for private development: 1. The homeowners on Garfield Avenue should be given the choice of either remaining or having their property acquired by the developer. 2. Explore the necessity of improvements to Garfield Avenue to accommodate traffic growth. 3. The development shall not include access onto Aldrich Avenue. • 4. The project shall not include development on the west side of Aldrich Avenue. 5. The developer should work with staff to eliminate or improve some of the design characteristics which are inconsistent with the Lyndale Gateway Plan. 6. Staff shall work with the developer to identify sources for the necessary gap financing. Basis of Recommendation: 1. The Lyndale Avenue South area has been designated a plan study area in the comprehensive plan. 2. The Lyndale Gateway Redevelopment Plan and Strategy has recommended redevelopment of Lyndale Avenue South, particularly for the area between 76th and 77th Streets. This plan contains very specific design considerations for the area. 3. On October 19, 1998, the HRA heard presentations from three development firms which were proposing private redevelopment of Lyndale Avenue South. 4. The HRA asked each development firm to submit specific information regarding the economic feasibility of their proposal so that one concept might be selected at the November 19, 1998 HRA meeting. • Alternative Recommendation: Accept either concept as proposed. 2. Accept the TOLD proposal for the east side of Lyndale Avenue and the CSM proposal for the west side of Lyndale Avenue. 3. Reject all proposals. 4. Designate one proposal for further analysis. Discussion/Decision Mode: The HRA indicated at their October meeting that a definitive decision should be made at the November HRA meeting regarding the redevelopment of this area in order to satisfy the concerns of its residents. Respectfully submitted, 9Y James D. Prosser Executive Director JDP:cak 0 0 • 0 Attachment A Staff Analysis of Lyndale Avenue South Development Proposals The HRA staff has investigated a number of characteristics of both of the proposed developments. These characteristics include development size and density, parking, traffic, conformance to existing plans and an evaluation of each of the potential uses. There has also been an analysis done to determine the costs of acquisition, clearance and public improvements for the site and the tax increment which each of the proposed developments would be expected to generate in order to absorb these costs. Development Size and Density The current commercial land usage on Lyndale Avenue South between 76th and 77th Streets is 6.05 acres containing 70,793 square feet of commercial and office space. The current density is 11,701 square feet per acre. The following table shows that the total site area for the CSM concept is more than three times the size of the TOLD proposal and has a greater variety of uses. The CSM development also uses the land more efficiently with more than twice the density of the TOLD proposal. Total Land Usage 9.21 acres 2.73 acres Total Building Area 464,855 sq. ft. 59,500 sq. ft. Retail 22,000 sq. ft. 15,500 sq. ft. Office x:: 50,200 sq. ft. 44,000 sq. ft. Hotel:: 56,427 sq. ft. (98 rooms) - Tovvnhomes 112,800 sq. ft. (64 units) - Senior Housing : 223,428 sq. ft. (149 units) - Donsity: 50,427 sq. ft. per acre 21,795 sq. ft. per acre Parking The development proposed by CSM includes approximately twice the number of total parking spaces. The number of surface spaces in the CSM concept, however, is only slightly greater than the TOLD concept due to CSM's use of underground parking. * not including parking for 64 townhouses. Traffic Generation The following U.S. Department of Transportation trip generation figures were used to estimate current and future traffic in the Lyndale Avenue South area. Use Retail office Hotel Townhouse Senior Housing Trip Generation 29.59 / 1000sf 14.81 / 1000sf 9.34 / unit 4.88 / unit 3.33 / unit Based on these figures, the current traffic and future increases in the Lyndale Avenue South area are estimated as follows: ....................................................... .............................. ...................... ....................... ....................... ................................... ................................. ....................... ....................... .............................................................. ............................................................ »Side of Lyilc ale West East West East East Trip s`Per Day 1,242 717 2,070 1,047 1,111 Tripspei Aere 324 338 407 Both the CSM and TOLD concepts would generate a higher amount of traffic than existing development. The TOLD development would create a 55 percent increase in traffic on the east side of Lyndale, while the CSM concept would generate 46 percent more traffic than is currently experienced on the east side of Lyndale and an overall increase of 59 percent for the entire project area. The traffic associated with the development on the east side of Lyndale in the CSM plan is accessed exclusively by Garfield Avenue. Garfield Avenue is not currently designed to accommodate this level of traffic. CSM's proposal for commercial development on the west side of Lyndale would have two way access onto both Lyndale and Aldrich Avenues. Right-in and right-out access on 77th Street is shown. It is assumed that the bulk of this traffic would use Lyndale Avenue. The site plan presented by TOLD shows two-way access onto both Lyndale Avenue and 76th Street with right-in and right-out access onto 77th Street. Assuming an equal amount of use of each entrance and exit point, an increase of 444 vehicles per day onto both Lyndale Avenue and 76th Street, and 222 vehicles per day on 77th Street might be expected. Again, however, it is presumed that Lyndale Avenue will actually receive the bulk of this increase. Lyndale Avenue, between 76th and 77th Streets, has a current traffic count of 13,500 vehicles per day. Portions of Lyndale Avenue in Richfield currently accommodate up to 17,500 vehicles per day. The traffic generated by either of these projects, therefore, could be absorbed by Lyndale Avenue. The Minnesota Department of Transportation (MnDOT) has scheduled improvements to 0 the intersection of the I-494 bridge at 77th Street in 2001. These improvements will also help accommodate additional growth on Lyndale Avenue given projected levels of service as follows: Level o Service Without Improvements Level ,o Service After linprovements 77th and Lyndale D C 494 and Lyndale/south C C 494 and Lyndale/north C B 76th and Girard (35W) B B While Lyndale Avenue would be able to accommodate additional traffic, Aldrich and Garfield Avenues are currently designed as residential streets. Commercial traffic on these streets should be avoided by any future development in this area. If such development occurs, it should be in conjunction with street improvements and the consideration of adjacent residents. Plan Consistency The City of Richfield Comprehensive Plan 1997 - 2007 currently shows the Lyndale Avenue South area as a "plan study" area, meaning that a specific development plan is being prepared for the area. The specific development plan for this area is The Lyndale Gateway Redevelopment Plan and Strategy, which was completed in 1996. The Design Guidelines from this plan are included as Attachment B. Some of the guidelines are shown in the following table: Create qn inviting and consistentstreetscape potentially no Establish gateway treatments at major nodes yes minimal Create gathering spaces- no no Configure parking so buildings &` public spaces are the focus yes no Create continuity; a unified character of the area yes no Buildings should address the street no no Avoid formula architecture; prohibit franchise style buildings ? no Develop compact, mixed use, village environment potentially no Create a 40' buffer adjacent to residential areas 16' - 26' 15' Allow only a single vehicular access to Lyndale Avenue yes yes Develop taller'buildings wzthan'tle drstrict yes yes While it would be difficult to secure a development for the Lyndale Gateway which would meet all of the design guidelines, it is important that any development achieve most of the criteria and generally achieve the spirit of the plan. The TOLD concept has several inconsistencies with the plan. Chief among them are the parking lot location adjacent to Lyndale Avenue, rather than behind the building, and a site design which is not oriented toward the pedestrian nor creating a gateway to Lyndale Avenue South. The primary plan inconsistency with the CSM concept is the lack of building facades/entrances oriented toward Lyndale Avenue. Overall, the CSM concept appears to conform better to the plan than does the TOLD proposal. Neighborhood Impacts In a neighborhood survey (see Attachment C), residents living on the east side of Garfield Avenue and the west side of Aldrich Avenue provided their input concerning the impact of Lyndale Avenue redevelopment on their properties and lifestyles. The general consensus of those living on Aldrich Avenue was that access onto Aldrich from the development was undesirable. The majority of respondents living on Garfield Avenue stated that they would prefer to relocate if commercial development occurred. There were several concerns about the development, with most pertaining to: traffic, noise, crime, and diminished property value. The staff has evaluated the two proposals in regards to these neighborhood concerns. The development proposal by TOLD does not have direct access to Aldrich Avenue, but additional buffering would be needed adjacent to residential uses. The CSM proposal, however, has access onto both Aldrich and Garfield Avenues. The staff recommendation would be that, if the CSM proposal were accepted, the access shown on Aldrich Avenue be eliminated and the existing single family housing on Aldrich remains in place. It would further be recommended that the homeowners on Garfield Avenue would have the choice of either remaining or having their property acquired and possibly be developed upon. 01 Evaluation of Uses Among the two proposals, there are eight different types of uses, each having merits and deficiencies. Staff has tried to identify some issues regarding each potential type of use. ?enror Pros: There has been a need demonstrated in the community for housing to lousing accommodate the aging population. The need was evidenced by a presentation given at the City Council study session on November 2. Among the primary conclusions of this presentation were that after 2010, the elderly population will experience considerable growth because baby boomers will begin reaching 65 years of age and that the elderly will soon represent 17 to 18 percent of Richfield's population. Another positive aspect of the proposed senior housing is that it is high density but will generate comparatively low traffic volume. Cons: Some concern has been raised that elderly housing might not achieve the active character which is sought for the area. There is also concern about disproportionate migration of elderly population into Richfield as a result of additional senior housing. Pros: The proposed hotel is part of the Marriott franchise, which is considered a high I Stay Hotel; quality product. • ..................................... Cons: Office Pros: The Lyndale Gateway Plan identifies small office building space as an appropriate use. Cons: Office space should be confined to upper levels along Lyndale Avenue, allowing retail uses at the street level. Single Use Pros: An established market. Retail Cons: The users of these type of structures usually have a prototype floor-plan and are generally inflexible to design modifications. The single use retail identified in the TOLD plan has two drive through lanes and parking fronting the building - which is inconsistent with the Lyndale Gateway Plan. If the user vacates the building, it may be structurally obsolescent for future uses. Multi Use Pros: This is the type of use which is deemed most desirable in the Lyndale Gateway Retail Plan, and may be the most vibrant and pedestrian oriented type of use. Cons: Small retail has the highest incidence of business failure. Towi-dlo;lees Pros: Townhomes, at the periphery of the development, may buffer single family dwellings from commercial uses on Lyndale Avenue. Cons: The townhomes proposed by CSM enter all of their traffic onto Aldrich and Garfield Avenues. The Lyndale Gateway Plan created a vision which included many different types of uses. While each of the individual uses in the CSM concept has their own merits and detriments, the overall mix seems to achieve this vision. 0 • Economic Feasibility of Proposals Preliminary information provided by Publicorp, Inc. forecasts the potential tax increment for each of the developments. The following is a summary of these findings: ..................................................................... ... .. .. .. ..................................................................................................... ................................................ .. ........::.:.................:.............. :..... East and West Side of Lyndale West Only East Only With Townhomes No Townhomes No Townhomes 25 Year Net'lncrement'? $17.7 million $14.6 million $7.5 million $5.1 million at Prese.nt Value $5.5 million $4.5 million $2.3 million $1.6 million A factor of the economic feasibility of each of the proposals is whether there are sufficient funds to offset the costs of preparing the land for development. The following table compares these costs and the available funds. • :.:. :.:. ........ .. .. > ... East _and West Side of Ey? oale West Only East Only With Townhomes No Towr homes ...,No Townhomes Pre-Development Cost* $9.9 million $6.5 million $3.6 million $3 million Present Value of Increment ` $5.5 million $4.5 million $2.3 million $1.6 million Gap Financing Necessary $4.4 million $2 million $1.3 million $1.4 million * Acquisition, relocation, site clearance & contingency. Either proposal would require some degree of gap financing. There are several sources of gap finicing, such as existing bond proceeds and land sale revenues. The CSM proposal, without the townhome element, would represent the least amount of gap financing needed for the greatest amount of development. Attachment B Lyndale Gateway Redevelopment Plan Design Guidelines • • • In order to achieve the intent of the Concept Plan and generate development that supports the guiding principles the Planning Commission recommends the following design guidelines. While development may not exactly follow the patterns shown in the Concept Plan, plans must be consistent with the design guidelines. Guidelines have been developed for public spaces, sites, buildings and land use. Derr/op : consisirnt strretrgpe ghMV* the iederr/opvnient airs to ddynr i& Anft to establish J S4MMtantsease Of& &Vft and m Orate a hair "dw stiret enrironnwnt /brpede:bians and can • Use pedestrian scale streetlights at a regular interval at all streets within the redevelopment area • Provide pedestrian amenities (benches and trash receptacles) at logical locations along Lyndale Ave • Require ornamental fences and plantings to screen parking areas from street views • Plant street trees at a regular hterval on all streets within the redevelopment area • Plant other plantings to create highlights at pedestrian oriented spaces, building entries and other focal areas • Establish a method of maintaining streetscape improvements that is common for all properties in ..e district Mark the entries to the iederelopnwnt am to rein/one its idenbfty as a datrict Establish markers on both sides of Lyndale Avenue at 76th Street and 74th Street Establish markers on 76th Street at the southeast comer of 76th Street and Aldrich Avenue, and at Design Guidelines the northwest comer of 76th Street and Garfield Avenue Grate Spam brut air not buiidinjs or pw>irinj ores to aratr iMrirest in brie pattrnts of *Mpmrntand to provide p/urs Jbrptldestnins aw-'/rom A=ysb?w& • Create small 'pocket plazas' between or beside buildings that could be used for outdoor restaurants, eating areas or gathering spaces, and to create links between parking areas and the street; develop these spaces to make them feel like an extension of the street (similar paving, lights, benches) ' Encourage the development of a farmers market that could use portions of larger parking areas at off-peak parking times Establish sidewalks 9VJWMVusl?' &VWh brw d4bler to provide for unintemvpbed pecan, do kdm • Provide sidewalks exclusively for pedestrian use along Lyndale Avenue • Extend walks from Lyndale Avenue along 76th Street and 74th Street to the limits of the district Extend walks south of 77th Street to the main entries of the Shops at Lrxwe and the Hampton Inn Close 7S* SftW between EPA&* Armes and A(dda&Arrnar to esm*m& 6*oww al for "s/ait cuts•thiv,10 t& ?eiPhboirGood Reroute the alley to reach Aldrich Avenue • Use the right-of-way to allow for more intense development or to create additional parking The'rxd * GatewaY AF Jul, B. /996 P4ge /9 • • • MakePUb/a transdtsn essendWAVtOfdie so/ution • Design and locate stops and shelters as integral elements of the project • Create connections which make public transit eminently useable by shoppers, employees, and neighborhood residents Idn Conigivre and bate psnbing to dnstnr dnt bud/dings amain as dw Jbcvs ofdw district • Discourage parking in front of buildings, except where that parking might occur on the street • Place parking behind or beside buildings • Prohibit parking areas at street intersections • Make access to parking areas prominent and visible from the street Create a bw*r between die rrdeve%prnrnt area and adjacent homes to mitigate an/• negstire mflaences of commerrh/acbrides m die dht ict • Provide a 40 foot wide bermed and landscaped buffer strip with a five foot high fence (colored chain link) at the area south of 76th Street and at the northeast comer of 76th Street and Lyndale Avenue Require a 15 foot wide landscaped buffer strip with a similar fence at all other areas Establish a method of maintaining the integrity of the buffer that is common for all properties in the district Create meand panfring deman areas to accommodsu expected • Encourage the development of uses that creatively share parking by time of day amongst a variety of uses in 6rde to reduce the total amount of land dedicated to parking Maximize density in the district by discouraging the development of excess parking Combine access points from Lynda/e Avenue in order to reduce poundal conflicts • Allow a single access at Lyndale Avenue between 77th Street and 76th Street Require 150 feet between access points at Lyndale Avenue and all other redevelopment parcels • Prevent access to parking areas from alleys: restructure alley access to serve only residential uses Dlevr* crandmAybwn sru to site which wi//s//ow die btAngs to br die l8cns of &* d&W& • Establish a common palette of materials for use at all sites within the district (planting, lighting, paving) Establish standards for site development that assure consistency through the district Limit the use of free-standing signs and pylon signs: encourage signs that are an- integral part of the buildings Dbw kP a sw&d duractrr for the built envdronnunt m rrndbr= die ,sense ofa compkto d emfp/irssming the dmmcYrr ofa com mrcW vd//age rstherAm a shopping cenur • Establish compatibility between buildings through similar massing, scale, bulk, and detail • Allow for individual expression from building to building, to reflect the character of a district of individual shops and businesses rather than a strip center Require developers to demonstrate how a Proposed building will be created that considers neighboring buildings Establish a characur dust is mole about bpi/d%W and die street thin parking sirs Place buildings at the street frontage at all locations within the district • Create buildings that address the street, with front doors to the public space at the street as well as access from parking areas • Use elements that are pedestrian in scale, as opposed to those that are meant to relate to automobiles and highways The Lyndale Gateway • /u/, 8, /996 Pdge20 Avoid "formula "archit WrO in order to achieve a design that betterrellects the community • Prohibit corporate colors, franchise patterns and buildings that are designed as signs; encourage creative design that relies on "found" character rather than introduced character • Require detail that is integral to the building, not elements that are applied to a standard building shell (such as dock, towers or "plastic" awnings) Perelop buildings dot relate to tie district and people on a// sides, not just the public side eliminate a "back door" appearance of other commerria/arias • Avoid large, blank wall surfaces; encourage windows, doors or other means of articulating large facades • Make building entries the highlight of the structure so it becomes obvious that the development is related to pedestrians • Integrate mechanical systems into the design of the building • Provide trash storage areas that are completely enclosed and incorporated as a part of the building • Require that signs be incorporated into the building facade, windows or awnings; do not allow signs that extend more than 12" beyond the plane of the building facade or signs that extend beyond the roof line 'Dere/op taller bui/dings at sonx arras within dW district to emphasise itr role as a gateway and to provide focus at the center of the district • Allow two or three story buildings at the intersection of 76th Street and Lyndale Avenue and in areas south of ;-6th Street Require 6* use Of high quality building materials and methods to create a stock of buildings that is enduring • Utilize materials that are durable, easily maintained and attractive at dose distances (from the sidewalk, for example); and materials that have an attractive pattem. texture and quality detailing Encourage the use of brick, stone or high quality precast concrete; metals that are matte finish and neutral in color, with visible comer trim when used for exterior walls Require the use of transparent glass at the majority of street level windows; prohibit the use of mirrored glass at street level Encourage canvas awnings; prohibit awnings of nylon or other synthetic materials, as well as those awning structures meant to be illuminated from within Crrate compact maned use deve/opnxnt in the Vernacular Of in urban ri//age • Allow higher intensity development which integrates employment, shopping, living, entertainment, transit, public spaces and facilities Make all new development compatible with the extant neighborhood 0 The Lynda/e Gateway • July B, /996 P4ge2/ U Attachment C South Lyndale Survey Results Purpose of Survey In September of 1998, a survey was sent to the property owners on the east side of Garfield and the west side of Aldrich. They were offered the opportunity to respond to three possible development patterns on the blocks between 76th and 77th Streets from Aldrich to Garfield. The purpose of the survey was to determine if people preferred one pattern more than another, and if they wanted to stay or move if new development occurred across the street from them. If people wanted to stay, they were asked what they wanted to buffer the new use. The three development patterns that the residents were asked to evaluate were as follows: Development Pattern One Buildings of one to three stories tall are built close to Lyndale Avenue with parking behind the buildings. The parking would be screened from Aldrich/Garfield Avenue by a landscaped buffer yard and cars could not access the parking from Aldrich/Garfield Avenues. Development Pattern Two The same as above, however, cars could access the parking lot from Aldrich/Garfield Avenues. Development Pattern Three Buildings of one to three stories tall are built back from Lyndale Avenue with parking placed in front of the buildings. The buildings would be close to Aldrich/Garfield Avenues. There would be a landscaped buffer yard between the street and the back of the building, and cars could not access the parking lot from Aldrich/Garfield Avenues. Survey Results There are seven properties on the Aldrich frontage and seven along the east side of Garfield. Four of the Aldrich Avenue property owners and five Garfield Avenue property owners responded to the survey. Aldrich Results It appears that Development Pattern One was preferred. Two of the four respondents liked this scenario. One respondent liked number three and one had no preference. There is no clear preference about staying or moving if development occurs. If development did occur, people did want a fence in addition to landscaping and screening of parking lots. 40 People expressed the following concerns: 0 • "Losing neighbors on both sides of Aldrich." • "Single home neighborhoods in Richfield being eaten up for commercial buildings and high rises, etc." • "Dust, dirt, noise, sewer work problems especially if a berm, wall and landscaping were not done first, before excavation." • "The type of buildings that attract the vandalism crowd." • "Litter on the street in front of houses." • "Keeping the big, old trees across the street." • "Lots of traffic trying to get to those stores or offices, etc., via Aldrich, not realizing there is no access. That already happens (several cars a day drive down and turn around in our driveways, I presume, to get to the shops on 77th)." • "Intensification of conflicts between residential and commercial." • "Getting paid what is the value of my house prior to any neighborhood changes if the values would be lowered by changes, plus some for cost of moving. (Would like) insurance against loss of value due to new construction across street." Other comments and questions: Respondents took the opportunity to make other comments. These comments are recited verbatim as received from property owners along Aldrich Avenue. Respondent A: "Inform us about all meetings where we can give input. Also, keep us updated each time a step forward in the process is made (e.g. approving a concept, selecting a developer, etc.)" "Replacing the current businesses with housing will: • reduce the traffic in that area on Lyndale, which is currently a real problem. • keep the "neighborhood" feeling. • reduce the need for large amounts of parking and therefore, the removal of house on Aldrich." "The final decision-making body should include a minimum of two residents (from two households) from the 7600 block of Aldrich who are willing to work with the City of Richfield concerning redevelopment and who will assist in keeping all residents on the block informed of changes." 0 Respondent B: "Why has there not been a plan to install common storefronts and removing a couple of buildings for parking space, thus leaving businesses and neighborhoods intact? This has worked well in other areas." "How would this project be financed? If with tax increment financing, it is my understanding Richfield would not benefit from taxes for 20 years." "How many years would remaining residents have to endure the noise, dust and dirt, eye sore and sewer work before this project would be completed? "We have taken great pride in remodeling and maintaining every part and aspect of our home and yard. If this development materializes and we decide to sell, there is no doubt our home and those of our neighbors (west side of Aldrich) will be greatly reduced in value." "We have serious questions about remaining in Richfield, as we see residents being squeezed out in the name of "progress." "One of the most disturbing aspects of all this is the lack of communication with respect and sensitivity for affected residents. Yes, we did attend meetings re: this issue, but as usual, opportunity for input seems a sham as decisions are already made. This fosters a general feeling of mistrust." Respondent C: "It would appear that some important considerations have been neglected. (a) Habitable location is prime purpose of community of Richfield. (b) Business/Service areas are established in the hope of providing salable commodity and function in accord with the demands and needs of the resident group. Modern transportation and communication has extended their scope to other locales. (c) Expansion of business and service areas at the expense of the prime purpose of residence with due consideration seems to be at current fault and not acceptable." Garfield Results There is no consensus on which development pattern is preferred. Two property owners had no preference. There were two votes for Pattern One and two for Pattern Three. Pattern two received no endorsements. (One owner preferred either 1 or 3. This preference is reflected in the tally above.) Three of the five respondents on the Garfield frontage said that they would like to move if . redevelopment occurs on the block west of them. (One resident visited the Community Development office and said that, "Everybody, except for one resident, would like to move.") 0 The following concerns were expressed about possible new development: • "More traffic." • "Cars blocking my driveway." • "Multi-story buildings across from our home. Also, would not like all the noise." • "Value of home going down in price." • "Crime rate higher." • "Could not sell house." (by someone who wants to stay.) Other comments and questions: Respondents took the opportunity to make other comments and ask questions. These comments and questions are recited verbatim as received from property owners along Garfield Avenue. Respondent A "Keep me informed on all counts." Respondent B "Yes, I need to know if I choose to stay, will that bring the value down? Also, will they relocate me if we have to move? I would like to add that I'm a first time buyer (with low interest rate) and how would that affect me if I have to relocate?" 0 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 71 Agenda November 16, 1998 Issue Statement: Conduct a study session with the City Council regarding "The Lakes at Lyndale"; the Richfield Lake Area Plan. Background: The first agenda item for the November 16 meeting is a report by planning consultants Fred Hoisington and Michael Schroeder of Hoisington Koegler. The purpose of this meeting is to allow the City Council and HRA to be presented the report and offer feedback. The Planning Commission and Community Services Commission have recently had a similar opportunity. The Richfield Lake Area Plan (RLAP) began in February 1997 with the first public information meeting. Driven by the impact of proposed improvements to 1-35W and the Crosstown, the City recognized the need to take a proactive approach to planning for the downtown Richfield area and initiated the RLAP planning process. The Lakes at Lyndale embraces the importance of Wood Lake and Richfield Lake as major assets to a changing downtown area. The plan, over a 10 to 15 year period, creates more and varied housing opportunities, upgrades commercial/retail properties, and provides fuller enjoyment of Wood Lake, Richfield Lake and the proposed Soo Line trail. The attached RLAP Master Plan provides a framework for guiding future development in the area. The main objectives of the plan are to: 1. Proactively work with MnDOT on its Interstate-35W improvement project ensuring that Richfield does not suffer a net loss in housing and the project is compatible with the community. 2. Take advantage of opportunities to provide more and varied housing; retaining current residents and competing with developing suburbs to attract new residents. 3. Use redevelopment to provide new commercial investment and upgrade commercial/retail in the area. 4. Take advantage of the aesthetic and recreational opportunities provided by improved access and design that complements Richfield Lake amenities and makes it a place where residents enjoy spending their free time. 5. Improve existing neighborhood cut through traffic problems. Integrate transit opportunities. 6. Improve the appearance of the community's gateways and the distinction between Richfield and Minneapolis at the city line to reflect the pride residents have in their neighborhood and community. 7. Involve the community in the planning process, generating ideas, feedback and review; ensuring that the process results in a plan that has grown out of a high level of community participation. 8. Realize the kind of redevelopment success on this project that Richfield has experienced elsewhere in the community. The plan contains information on the process, establishes guiding principles and design guidelines, and lays out a master plan for the area to be implemented over the ensuing ten years. After previously holding three joint study sessions with the City Council, HRA, Planning Commission and Community Services Commission, the Council and Commissions are being given the opportunity to solely discuss the draft plan and provide feedback. Recommended Motion: Accept the report and the work provided by Hoisington Koegler to develop the RLAP Master Plan. Basis of Recommendation: 1. The Richfield Lake Area study is one of several studies in the community that focuses on maintaining the vitality of Richfield through the use of redevelopment. 2. Planning provides the opportunity to evaluate the Richfield Lake area as a community asset for replacing lost housing, improving housing choices, commercial investment, recreational enhancement an improved gateways and transportation functions. 3. The Richfield Lake area process has been developed to ensure information is routinely provided; feedback is sought and received; and the neighborhoods and community believe they have been provided a high level of information and opportunities to participate. Alternative Recommendation: Modify the report, seeking more information. Discussion/Decision Mode: The plan will be printed and bound in a final form by the end of December, as scheduled. Copies will be distributed to the City Council, HRA and Commissions. Respectfully submitted, James Prosser Execut ? Director JDP:cak 0 r The Lakes at Lyndale The Richfield Lake Area Plan DRAFT W. - ove?nber :i, x.998 • Includes: The Framework The Challenge The Process The Vision and Guiding Principles The Concept Plan The Master Plan The Design Guidelines The Next Steps Appendix 0 l 4 CONTENTS: PART ONE: The Framework - What is this place? page 1:1 Study area site Analysis Map Existing Land Use Map PART TWO: The Challenge -What's at risk and why do the study`? page 2:1 Problem Statement Plan Objectives PART THREE: The Process - How it happened page 3:1 Public Involvement PART FOUR: The Vision and Guiding Principles page 4:1 PART FIVE: The Concept Plan page 5:1 PART SIX: The Master Plan page 6:1 The Master Plan Map Land Use The Lake Gateways, Streetscapes and Identity Public and Pedestrian Places Transit Traffic Quieting PART SEVEN: The Design Guidelines page 7:1 District Structure Public Places Site development Buildings PART EIGHT: Implementation and Next Steps page 8:1 Staging Flexibility Traffic Analysis APPENDIX: Newsletters [not included] Public meeting summaries 0 Y t PART ONE: The Framework -What is this place? Existing Conditions Richfield is located in the center of regional activity. The airport and three highways cut into its boundaries, and have resulted in a loss of housing stock. In addition to lost units, changes in demographics and market preferences have created a need for different housing types. With the impact of future highway improvements, the degradation of Richfield Lake, and uncertainty about the future of the area, the Lakes at Lyndale Area is showing signs of private disinvestment. Richfield cannot continue to be a great place to live, work, and do business if it does not plan for the future and a community developed plan will insure that changes are the ones the city wants - the ones that keep the community vital. The Lakes at Lyndale can become a great place to live, work, and do business by creating more and varied housing opportunities, upgrading commercial/retail properties, and providing fuller enjoyment of Richfield Lake. ? 49 The Framework 1:1 • • • \ ?l L ?OCr o..t.nn Ni.t W.> 6Z r \ °, \f Ir ? I ?n I 1 Mtt?r ld 1 1 Lr.%rr •..nu..M 6tis. 9tn.t 4w >w. rvwna ..tt wnwr...v,. er,.ny trt Wr .uwew.y .. W wrMW vwt.yM-d- ?'rK Orrna Lr. r i .rrw rript pwNy a .Itrn. NtWt N <4a'u b rty br.y, ru.r..art.yuwwtRryr tyww..trrr. n... ?••-}? '? 1 , 1 p . Wit. ,.w,....,?..t.,,......r?.-. www..t.r ux+tL?+vu rs W tw.rw drYy., 1 ':'t4de.w?nt.intaW.rJtMW W.Ira rrmr?Lr....rr ?au ta.a- a.r tW wr.w dww MMtW .+... ?Mn.wry.a.a N.wl- ?w?..W.t ryretN hwMwlr Ri<I [l.tt Latr . :WI+ dlt. >r.nwr.. Mbnl? w AMW Wwtrrr.wryr TN Wt..rrctr.-Mwary - wcf. '{?yI .r.t>aTSro.wt !yam Irr 4s O?tF .. w iinp.t?t w. W?a - Jow arolPw hwt? N. ,tr rw WYm W ?ArW V 4<M.r.... W)J.dLa lw. ? w.11 W.ra w>r<... rr.rAn a...ri r.?arp IrV ui..r O.M ro.u d 46th W.<t fwy.b f1..rr N WrV wroY irrt. w ..Y .IIr W..L wn. tNyY nfrrw4 tr. .b.tM .Y s..t. • .yrn t y^I'ryn.wrr t..r.? d W ttaw.a W. W wImY M.MwW.. mrsnp ? ?•, ?llw. W1.: ??.Yi•>?da I.t hr> .•rws-n.a• rc?o. ' .o*+rr la? rr? .1.ft ir. day taY. R E[<1 r++•W W r.?tW ? I?.y I w wrdW..?' / wry rwtwr ya..ry?yts?Ry Y.oJ 6.tr ?ya..!>...r w.q..rru Md W 4.rW /71 ? <WatW r wi.?t y.r rry dWwrpr d0.ry ary se....nra The Framework 1:2 SITE ANALYSIS OF THE LAKES AT LYNDALE STUDY AREA Existing conditions June 3. 1998 W ?Mwe.. Iwp rq. ?'M r.r?. Y.1.... h.ry a>.a s.«et ??? ?? wnrr a r...rrn. dr. w,nr, u..w, rn ..wy rw..rr t. w m.. t.a.ry the ?w..+.t IrarvrW rw4 Ghtl I wr ,..t..~... rct w .w d.. ronr.+sa r.?.N'`'t w.a u.t w awtrr d w } y?a.tt St..<t nrw v«.w. a.<r p.wt a.w... rµ rr,n M M4M..., h.ttv.wn ? ? ?.qr ?d? .r.a.yr r w..q ? tN .dwpw rW.r.,y .wtya..vyv.rwv.- rnrwW?Morw.d?. er.t / Lr'ar. M.r r..n. rm.un... n.y.L K..w w / Nar.aawaiwrctwt? w ?? NV.J a .t W:.a..r<n? d 66N 8n.a v t ?/%?L1.u.r lw? . w a.dq...r <n..... ru..i ? J ? M w .r.ry. ? • son r W w.wrtty • '% P'•.w.. art r.u V W .N..t.I.rrr W ha w.Hwt W Maa.t rIN //??, ?jy ? ? - n I ? tN .wr<wtw d F6q Sth.t w. ' tw w 4 P'.•atr nrr wrt.n.. ..ty ...t. n.re.w .a. rw. Ir a aih S.rt ..ryae,N...t w M.wttrw .e.. M A.....twVtipr ra. M"'r`^a'?^.ua. vu..oisrw ? tk.1a tw rs. i• 0 im' "' 400' 800' LEGEND Single-Family Commercial Parks xoeta Multi-Family Insitutional Lakes Existing Land Use City of Richfield Lakes at Lyndale Area ® Hoising[on Koegler Croup Inc. 49 February 13, 1997 PART TWO: The Challenge - 40 What's at risk and why do the study? Problem Statement Richfield cannot continue to be a great place to live work, and do business if it Issues: does not provide residents with modern housing, shops, businesses, and . Population decline recreational opportunities. Keeping neighborhoods vital will mean planning . Loss of housing ahead to avoid declining property values, disinvestment and deterioration. • Demographic and market changes The Lakes at Lyndale area faces highway plans that initially threaten a net loss of • Private disinvestment housing. Richfield recognizes the need to not only retain residents but also • Lack of lifecycle housing provide more housing and a greater variety of housing to meet resident's needs. • Need for a sense of place/identity Investment in commercial/retail property along Lyndale has stagnated, • Poor pedestrian discouraging reinvestment in adjacent residential properties. The Lakes at accessibility Lyndale neighborhood features community gateways but there is little visible evidence of strong, immediate investments as you enter the community through Opportunities: • Underutilized land them. Finally, the existing Richfield Lake trails, park and recreational . Highway improvements opportunities have not offered residents the full enjoyment of the lake. as catalyst • New tax base • Create a sense of place The Mission • Natural amenities • Create a transit center • Grow population To make the Lakes at Lyndale area, and as a result the community as a whole, an • Intensify development even better place to live, work, and do business by providing more and varied with lifecycle housing • Improve housing and housing opportunities, upgrading commercial/retail properties, and providing retail mix fuller enjoyment of Richfield Lake. . Improve pedestrian accessibility The Objectives of this Plan are to: 1. Proactively work with MnDOT on its Interstate-35W improvement project, ensuring that Richfield does not suffer a net loss of housing and the project is compatible with the community. 2. Take advantage of opportunities to provide more and varied housing in the Lakes at Lyndale area to continue to retain current residents and compete with developing suburbs to attract new residents. 3. Use redevelopment to provide new commercial investment and upgrade commercial/retail in the area. 4. Take advantage of the aesthetic and recreational opportunities provided by Richfield Lake, making it a place where residents enjoy spending their free time. 5. Work to solve existing neighborhood cut-through traffic problems and improve transit opportunities. The Challenge 2:1 6. Improve the appearance of the community's gateways and the distinction 40 between Richfield and Minneapolis at the city line to reflect the pride residents have in their neighborhood and community. 7. Involve the community in the planning process, generating ideas, feedback and review, ensuring that the process results in a plan that has grown out of a high level of community participation. 8. Realize the kind of redevelopment success on this project that Richfield has experienced elsewhere in the community. • rI The Challenge 2:2 PART THREE: The process The Lakes at Lyndale planning process began with identifying the problems and opportunities of the area. This included reviewing population changes, housing and business conditions, highway plans, the "health" of Richfield Lake, and a site analysis of the physical character of the area. In developing the Vision and Guiding Principles it was important to involve the potentially affected interests (PAI); the residents, business owners, and others. This was done through public workshops and newsletters. As the plan developed from concept possibilities to draft master plan, the PAIs were involved through public workshops, open houses and newsletters. The final draft master plan and design guidelines represent the vision and commitment the city and its residents have for the Lakes at Lyndale area as a continuing great place to live, work and do business. Key Steps in the Process- Involving the Community February 18, 1997 Public Information meeting March 1, 1997 Public working session to develop a 2010 Vision for Lakes at Lyndale April 1997 2010 Lakes at Lyndale Vision & Guiding Principles developed for review and comment, published in newsletter update June 3, 1997 Public meeting/working session to receive feedback on alternative concepts July 1997 Newsletter update July 29, 1997 Public working session to receive feed back on composite planning concept September 1997 Newsletter Update October 1997 Special mailing: introducing a vision for a changed area November 5, 1997 Public meeting to review Composite Plan March 1998 Newsletter Update May 28, 1998 Open House to review Draft Master Plan and Site Details June 1998 Newsletter Update August 13, 1998 Second Open House to review updated Draft Master Plan and Site Details Informing the Community Open Houses & Public Meetings: February 18, 1997 March 1, 1997 June 3, 1997 July 29, 1997 November 5, 1997 May 28, 1998 August 13, 1998 Study Sessions with the City Council, HRA, Planning Commission, & Community Services Commission: March 17, 1997 August 18, 1997 November 17, 1997 June 15, 1998 November 10, 1998 November 16, 1998 Project Newsletters: April 1997 July 1997 September 1997 March 1998 Special mailing: October 1997 "Your City "Articles May 1998 July 1998 Web Site: Special Neighborhood Meetings: Were scheduled as necessary The Process 3:1 0 PART FOUR: The Vision and Guiding Principles The Vision Statement - 2010 "What Does This Place Want To Be?" This is not the same Lakes at Lyndale area that existed in 1997. It is a "place" that it is recognizably different in use, intensity and appearance than its surroundings. It has a focus, a center, and a place for people throughout the community to gather. It is a community to those of us who live here and the center of community for those of us who live elsewhere in Richfield. There is a real sense of community here. The area functions better with transit that is balanced between cars and pedestrians. Even buses seem to have a place. And natural patterns have been recognized and restored. The true character of the area shows through in the way buildings and public spaces come together. Reinvestment has resulted in expanded business opportunities and greater value for the entire Richfield community. Most important, the Lakes at Lyndale community now has a focus on us, its people. One of the really good qualities of the Lakes at Lyndale area is that it feels different from the moment we enter. Portals announce our arrival, recalling features of the area that are unique to Lakes at Lyndale. Uses are mixed and in close proximity to one another often varying within a single building. Streets 40 have become the public spaces, linking uses with the lives of residents and unifying the area with elements familiar to Richfield. Cars are welcome, but in the Lakes at Lyndale area, we want to walk rather than drive. Here we experience the connection between the elements that make the place feel whole. The lakes are the centerpieces of the Lakes at Lyndale area and the natural patterns they paint unify the community. New buildings are marked by their relationship to natural systems, and wildlife of all kinds continue to thrive here. The lakes are not only a respite from the activity of the Lakes at Lyndale area, but their character radiates along streets, walkways and parks, bringing nature closer to everyone's front door. Lakes at Lyndale is a place for families and an enclave for seniors. It has the qualities of a small town, where we walk to work and school, where we wave from our front porches and chat over the fence, where we recognize those we pass on the street, where we play together in the park as families, and where we meet casually with friends in shops and businesses. A .lot has been accomplished in the Lakes at. Lyndale area by working together to solve its problems and focusing on the strengths of the community. The vision we shared was built on the idea that the Lakes at Lyndale area is a special "place" and that only together could we make the vision a reality. Many things have changed, but that we are now the highlight of the Lakes at Lyndale area is the most significant. The Vision statement & Guiding Principles 4:1 Guiding Principles "What Does This Place Wash To Be?" A Place for Walking - Emphasis should be placed on making it easier and Guiding Principles in safer to walk around and through the Lakes at Lyndale area. Summary: The Lakes at Lyndale area is a place where walking should be part of everyday A Place for Walking life, health and recreation, walking to shop, to bank, to church, to Wood Lake and around Richfield Lake. It is a place with lots of people but a harsh Lakes as a Natural environment for walking. Certainly, the distances are short enough were it not Centerpiece for congested traffic and very wide streets. Greater emphasis must be placed on making it safer and easier to move around and through the area on foot while A Place for Investment creating pedestrian linkages into the neighborhoods that surround the Lakes at A Place Respected by Lyndale area. Highways Lake as a Natural Centerpiece -The Richfield Lake water quality should be A Place for Living improved and the lake should remain a good place to stroll, gather and observe A Competitive Place wildlife. Richfield Lake evidences decades of abuse. No longer a lake with fresh clean Visually connected with a water, it is a wetland, a receptacle for nutrients and silt. On the other hand, not Distinct Identity many areas of Richfield have even a remnant of a lake. This is why Richfield A Place to Redevelop and Lake is such a valuable and unique resource. It is the single most important Create Value natural unifying element and it will always be there for the community to walk around and view, whether or not it is reborn as a lake or continues to manifest Lake as a Community itself as a wetland. We must demonstrate more reverence for the lake in the Asset S future than in the past. We must maintain it as a great place to stroll, to protect A Transit Hub and observe wildlife and gather. More importantly we must improve the quality of its water, as well as that of Wood Lake, if we are to pass the enjoyment of it A Place to Gather along to future generations. A Mixed Use Community A place for Investments - Reinvestment will be important to maintaining the area's character by improving the quality of housing and businesses. The character of the Lakes at Lyndale area is dependent on maintaining the quality of much of its existing housing and business stock. This means reinvestment, spending small amounts of private money now rather than large amounts of public money later to increase building capital and tax capacity. A Place Respected by Highways - Ways must be found to mitigate the highway impacts on the community. The interstate highway system is an asset to the region though the burden of noise and traffic must be born by the neighborhoods, like Lakes at Lyndale, that border it. We must identify the elements that will enhance compatibility and, thus, turn a liability into an asset. Bridges must become gateways and ways must be found to minimize the barrier the highways represent while mitigating the potential "highway" effects on the Lakes at Lyndale community. • The Vision Statement & Guiding Principles 4:2 A Place for Living - The area has the potential to satisfy some market niches and to realize a net increase in housing while investing in existing housing. A significant part of the total population of the Lakes at Lyndale area lives in three large high-rise seniors' housing developments. Seniors are very valuable resources for the Lakes at Lyndale area both socially and economically. They substantially gravitate from the larger Richfield community making Lakes at Lyndale a melting pot for socio-economic diversity. On the other hand, there are lots of other constituencies that have relatively few housing choices available to them in Richfield and the Lakes at Lyndale area, unlike anywhere else in the City, has the potential to satisfy some niche markets while providing significant support for local businesses. We must recognize the potential to realize a net increase in housing while reinvesting in the housing stock that is to remain. A Competitive Place - Recognizing the importance of ongoing renewal in the area will be important in remaining competitive with other suburbs in retaining and attracting residents No community will be a desirable place to live, work, shop or play unless people have a reason to want to be here. There are lots of other choices. Making them want to be part of the Lakes at Lyndale area requires a constant effort to improve housing, recreation, services to residents and aesthetics. We must recognize the importance of ongoing renewal if we are to maintain a place that is competitive with other suburbs in attracting people. Visually Connected with a Distinct Identity - The identity of the area should be sewn throughout the fabric of the community using landscaping, lighting, building design and focal points. The Lakes at Lyndale area has developed as a lot of individual disconnected pieces that do not tie together. It has no identity that is uniquely its own though it is truly a unique place. As it develops it must draw on its inherent strengths, reflect the character of its setting and the spirit of its people, follow the patterns of the larger landscape, and build on its heritage. Identity must begin at the edges where it clearly declares its uniqueness and then sews that character throughout as the fabric of small town community life using landscaping, lighting, building design and focal points as the connecting tissue. A Place to Redevelop and Create Value - If the Lakes at Lyndale area is to be enriched in character and value, it will be important to identify and transplant those uses that do not contribute to the overall well-being of the Lakes at Lyndale community. Not everything in the Lakes at Lyndale area functions very well or can be expected to create long-term value for the Richfield community. We must recognize that these elements often have negative effects beyond their boundaries. While the long-term viability of all businesses and residents must be of paramount concern, this does not depend on all of them remaining exactly where they are. If the Lakes at Lyndale area is to be enriched in character and value, it will be important to identify and surgically transplant those uses that do not and will not be able to contribute to the overall well being of the Lakes at Lyndale community. 1"] The Vision Statement & Guiding Principles 4:3 Lake as a Community Asset - Although the Lakes at Lyndale area will be used to mostly by immediate residents, it must be thought o 'as a community asset and function as a community center. The Lakes at Lyndale area is a community center serving the needs of the entire City and beyond. As such, Lakes at Lyndale itself must be thought of as a community asset and, though it will be used mostly by the immediate residents, it must reinforce the role and function of the Lakes at Lyndale area as a community center. It should be passive in character but readily available to adjacent neighborhoods and those utilizing the adjacent commercial services. A Transit Hub - It is important to think about ways to move people in and through the area and better balance a commitment of land resources to moving people as well as cars. It is very difficult to maneuver into and through the Lakes at Lyndale area by any means other than the automobile. If you do not have access to an auto or are unable to walk easily, it becomes very difficult to partake of what the Lakes at Lyndale area has to offer. We must begin to think about other ways to move people in and out and through the area and better balance our commitment of land and resources to moving people as well as cars. A Place to Gather - The Lakes at Lyndale area should be a place to meet and interact socially. It should be an active and vital place filled with people. The Lakes at Lyndale area must be a primary focus for community life while providing visual, physical and natural connections to other important elements that enrich the life of its people. This should be a place for people to meet, to interact socially, and to celebrate together the true meaning of and enjoyment of community. It will be important to the safety and enjoyment of the people who live or otherwise use the Lakes at Lyndale area to have this be an active and vital place tilled with people. A Mixed Use Community - One of the area's principle strengths is its diverse land use consisting of housing, institutions, businesses, recreation and open space. A mixture of uses should be maintained that work together to enhance the sense of community. One of the Lakes at Lyndale area's principle strengths is its diverse land use consisting of housing, institutions, businesses, recreation and open space. These are elements that support one another and create an urban living environment that is rich in experience and fulfills the spirit of community living. The challenge will be to maintain a mixture of uses that work together to enhance the sense of community. • The Vision Statement & Guiding Principles 4:4 0 PART FIVE : The Concept Plan The Concept Plan begins to give form to the guiding principles to the Lakes at Lyndale area. The plan represents locations and patterns for new housing, commercial, transit, circulation patterns for cars and pedestrians, important gateway and identity elements, and important connections to Richfield Lake. This plan was used to test the big picture ideas with the community without getting bogged down with details. The plan was first presented at the July 29, 1997 meeting and alter much public input and consequential revisions, it evolved to the plan that appeared in the March 1998 Richfield Lake Area Newsletter. The Composite Plan as printed in the March 1998 Richfield Lake Area Newsletter Richfield Lake: • Wild, natural with improved water quality • Small, garden-like gathering places, • Park-like connection between the lakes 0 Housing: • New housing choices for residents • Senior housing or other multi-unit housing options Commercial. • Parkway to improve circulation and business access • Pedestrian pathways with pockets of nature • Pedestrian connections between sidewalks and storefronts Gateways: • Gateways reflect the character of the lake • Improved appearance of Lyndale Gateway • ® Special Streetscapa Enhanced Streetscape ' ' Main Street Parkway pedestrian IinWtrail Gateway Special pedestrian feature X Enhanced Intersection JP Special Landscaping 0 Trallie Ouieling Measure Transition to commercial LAKES AT LYNDALE AREA Tc or mixed use DRAFT CONCEPT PLAN TT Transition to townhomes by Hoisington Koegler Group, Inc. Public Transit location option The Concept Plan 5:1 Transit: • Integrated transit stops • Improved service LAKES AT LYNDALE AREA DRAFT CONCEPT PLAN • PART SIX : The Master Plan Introduction. The Lakes at Lyndale is intended to be a place with a distinctive identity and a character all its own within the larger Richfield community. It is also intended to provide the larger Richfield community with an identity and a focus for civic and social affairs. The Lakes at Lyndale is intended to be an urban village where people live, shop, work, play, and are entertained; where a good supply of life-cycle housing is available to accommodate the ever-changing needs of Richfield residents. The Lakes at Lyndale area is intended to be a small town place where residents have the opportunity to walk, gather, and enjoy nature and transit options are available. It is intended to be a central place where the larger Richfield community can come together; an urban place and yet a place where nature and wildlife abound; a personal place; a village. Land Use in the Master Plan The Core The core is the area located inside the parkway, which is intended to consist of higher intensity mixed-land use. While many existing uses and businesses will remain, several will be replaced by new housing, retail, office, restaurants, and entertainment facilities. In the core, buildings are intended to be taller, not unlike those that already exist in the Lakes at Lyndale area. Parking is intended to be relatively unobtrusive, located in parking ramps and garages, not at street edges or at major intersections. Here buildings and people, not cars, are the focus though cars must certainly be accommodated in support of businesses. Buildings command the more highly visible street locations, thus defining pedestrian ways while creating opportunities for visibility directly into shop windows. Within the core, land uses are intended to be mixed, both vertically and horizontally, with housing being an integral part of commercial and office buildings. This will provide opportunities to share parking and reduce overall parking demand while creating patterns of use that both send and receive people and reduce travel demand. The emphasis in the core is to be on moving people conveniently from place to place within while making connections with the larger community that is beyond. North Lyndale Gateway The Lyndale north gateway is intended to have a complimentary but different character than the core. Within this area the intensity of development will be somewhat lower than the core and building heights will be variable. Parking is acceptable either in front or at the rear of buildings though building masses, not parking lots, should frame intersections. (Refer to Master Plan Map) The Master Plan 6:1 In the 6200 and 6300 blocks of north Lyndale, mixed retail/commercial and Is offices are intended to frame the street. In the 6400 block, housing over retail/restaurants are intended to be positioned to maximize resident views to Richfield Lake. These are intended to accommodate buildings of comparable heights to the area's existing housing developments. On the east side of the 6400 block commercial development and parking expansion is intended. Neighborhoods and Housing Four-single-family neighborhoods surround the core and the north gateway. With few . exceptions (Wood Lake Village) these neighborhoods have a grid- street pattern reflective of traditional neighborhood design. The master plan refers to these areas as "existing housing". Tlus means that they are. to remain as single-family neighborhoods and that measures will be taken by the City to reduce external influences which may tend to erode livability. Neighborhood conservation is intended to be employed within three of the four neighborhoods that surround the core and the north gateway. The fourth neighborhood, the neighborhood that wraps around the north and west sides of Richfield Lake, is the most vulnerable to outside influence, in particular highway influences. It is intended that this latter area be continually monitored for signs of incipient blight and neighborhood neglect. While the City has an adequate supply of affordable housing, it does not have a diverse stock that is able to meet the needs of its own residents. It is the intent of the plan to provide housing at Lakes at Lyndale that responds to the market while freeing up family housing elsewhere in the City. Approximately 30 single-family homes and 270 apartments are expected to be replaced by 1,400 future units for a net increase of approximately 1,100 new units consisting of townhomes, apartments, condominiums, and other forms of housing to satisfy the life-cycle needs of Richfield residents. New housing in the Lakes at Lyndale area is intended to satisfy the needs of professionals and empty nesters, sans children, providing a more convenient urban lifestyle. While the population at Lakes at Lyndale is intended to age more rapidly, the remainder of the City is intended to grow younger as housing is freed-up for families within established single-family neighborhoods. The Lakes The intent of the master plan is to maintain the present character and quality of Richfield and Wood Lakes as wildlife resource areas. Its further intent is to improve the water quality of the lake system by intercepting virtually the entire flow of surface run-off to Richfield Lake and treating it before it is released to Richfield Lake and subsequently Wood Lake. While Richfield Lake is intended to be managed to maintain the present diversity of wildlife and protect its existing character as a place to walk and observe wildlife, it is not intended to be maintained either as is or as part of the Wood Lake Nature Center. Since Richfield Lake is continually losing water surface The Master Plan 6: 2 area to eutrophication, it will be necessary to manage the lake and intervene in . this natural succession process just to maintain its present character. Periodically, the lake will need to be dredged to maintain about the current size of open water surface area. Richfield Lake is not without problems in its present state. In addition to poor water quality, attributable to surface run-off, it also has a somewhat larger goose population that tends to conflict with human use of the resource. It is intended that trails be designed, and in some cases, elevated and that vegetated trail edges be established to minimize the overuse of the trails by geese. Many of the conflicts that exist can be resolved by prudent design. Ponding is intended to be provided at the edges of the lake beyond the perimeter of the trail system as receptacles for storm drainage. Water quality within these basins will not be of top quality but they will allow for the settlement of silt before the water overflows into Richfield Lake. These are intended to be wet ponds because they offer the greatest potential for water quality enhancement. They are intended to be integrally designed and vegetated and periodically dredged to maintain a much higher quality of water within the lake system. While the lake is intended to remain as a wildlife resource, it is intended to have multiple access points to accommodate adjacent residents and others that wish to use the trail system. While some of the adjacent uses may have an overview of the lake, it is intended that the lakes edges remain natural and that there be a sense of enclosure and non-interference for those seeking enjoyment of the • wildlife atmosphere. Since the new outfall from Richfield Lake to Wood Lake is overly obtrusive, it is intended that this facility be landscaped to minimize its impact. Trees are also intended to be planted at key locations at the periphery of the wildlife area. Identity, Gateways and Streetscape The district is intended to have an identity that is garden-like in character. The identity begins at the district's entries at I-35W and the garden bridge, and extends throughout the district along its public ways leading to more intimate urban garden spaces including linear, plaza, and roof gardens. Sketch of 35W Garden Bridge at 661h Street The Plan's structure is built on the Garden Village theme. Care and order are to be evident in the built patterns. Structures will be at a pedestrian scale, made of quality materials with surfaces of warm brick, wood and glass. Plants, ranging from street trees to colorful annual flowers will be used to enliven and soften the urban edges. Like a garden, the district will have many inviting paths, leading to opportunities to meet neighbors, shop, eat, or stroll over to the lakes. The Master Plan 6: 3 • Entry gathering gardens and linear entry gardens are used at strategic locations to define the district core and provide a unifying character within the district. The gathering gardens are small plazas just off the streets sidewalk where people can stop and rest, meet with neighbors, watch activities in the district. The garden would consist of garden-like structures such as benches, perennial and annual garden beds, paths, and may include overhead trellis structures or other focal points. The linear gardens would make use of the boulevards along the street to plant colorful perennials and annuals in low raised planters. These short lengths of garden may also include district signs to define the area and welcome visitors. [sketch of entry gathering garden and linear entry garden to be included] Streetscaoe Lyndale Avenue and 66`h Street intersect in the heart of the district, creating an opportunity for an exciting and active center for the area. These regional routes • are intended to offer motorists and pedestrians inviting paths into the district where buildings and their entries are at the street, creating a district center. Dressed up with unique district lighting, plantings and other amenities, the streets and sidewalks will create the identity of a livable community, where the streets are community places for people to walk, shop and meet with neighbors. The plan intends for pedestrian corridors to lead off the street into inviting courtyards and entries. [sketch of streetscape amenities to be included] The Master Plan 6. 4 Parkways The Lakes at Lyndale area includes a parkway system that delineates the edges of the core. The master plan intends that the parkway serves two roles, first as an alternative access to the backside of core businesses and second as a minor bypass (eastbound West 66`h Street to southbound Lyndale Avenue, for example) for traffic that has no destination within the core. The intent is to create a true parkway character with narrow streets and park-like boulevards that reduces the need for the significant widening of West 66"' Street and Lyndale Avenue while attractively defining the edge of the core. Most of the street system needed to establish parkways already exists in West 65`h street and Lakeshore Drive. These serve the intended parkway function though both routes are wide streets. Because of its park-like edges, only Lakeshore Drive has the intended parkway "feel". The segment of Pleasant Avenue from 65`h to 67`h streets, and 67"' Street are also intended to be components of the parkway system, but they do not serve an essential traffic function, (except for access to the RSA Urban Village). There is virtually no demand for a north bound Lyndale Avenue to eastbound West 66`h Street bypass according the traffic analysis. These segments are still important parkway components with Pleasant Avenue having a recreational trail / linear park focus and West 67`h street, east of Harriet Avenue, serving as a park and trail /connection to the regional trail. Of particular concern is the further widening of 66`h Street and Lyndale Avenue which already represent forinidable barriers to pedestrian crossings. • The traffic analysis indicates that at full development of the Lakes at Lyndale, west 66"' Street and Lyndale Avenue will be able to handle the projected core area traffic volumes with additional turn lanes and signal timing modifications. Public and Pedestrian Places Public and Pedestrian Spaces. The master plan is organized around a system of pedestrian ways and public spaces to balance walking and gathering with auto and transit accessibility. It includes different options for improving pedestrian access including skyways and street-level walkways to provide safe crossings at Lyndale Avenue and West 66`h Street. In the core commercial/retail areas, landscaped pedestrian ways separate people on foot from cars and small gathering spaces are located within each block offering quiet refuge from street noise. Many of these pedestrian spaces will be privately owned and integrated with new development. Section sketch of inner block pedestrian way 0 INNER BLOCK PEDESTNIANWAY The Master Plan 6: 5 Richfield Lake will be the only large public space within the Lakes at Lyndale community. Virtually all other spaces are intended to be smaller more intimate places that are conducive to small gatherings, not large events. The RSA Urban Village on the southeast corner of 66th Street and Lyndale Avenue is a good example of private space which serves a public purpose but is an integral part of the new development. The most significant element of the Lakes at Lyndale plan is the pedestrian system, which is intended to connect all of the quadrants of Lyndale Avenue and 66`h Street. The master plan makes the corner of 66`h Street and Lyndale Avenue the focus of the district by creating and linking plaza spaces on each quadrant of the intersection, making this both the visual and pedestrian center of the district. From there, pedestrianways extend along the major streets and penetrate into development sites along the streets. Each represents an opportunity to create urban garden spaces that will complement adjacent business activity. The three existing parks, Richfield Lake, Little Bobs and Garfield Parks, are intended to continue to be important elements of the Lakes at Lyndale area. It is intended that a much stronger park-like connection be established between Richfield and Wood Lakes by expanding the boulevard and landscaping Rae Drive as a pedestrian linkage between the lakes. This will create a more natural, identifiable and inviting way for pedestrians to enjoy the wildlife characteristics of both lakes. It is also the plan's intent to reconfigure Garfield Park as a neighborhood park while leaving Little Bobs Park pretty much as is. Whether or not all three parks should continue to have playground elements as their focus should be decided by the Community Services Commission, with neighborhood input, and based on ever-changing demographics. Transit Transit takes on ever greater importance at Lakes at Lyndale in the future. A transit stop located on West 66"' Street, just east of Lyndale Avenue, offers safe and secure shelters which are integrated with other active uses or businesses that facilitate the public's use and acceptance of transit. The shelters are integrated with pedestrian ways and, in particular, skyways to make them more readily accessible, safe, secure and attractive. A transit station is intended to be located on 66"' Street west of Lyndale Avenue. It too, is intended to be integrated with active uses. It is also intended that transit be given a high level of visibility to maximize its use by residents and visitors. While some of the seniors housing communities provide resident transit service, it is intended that public transit play an increasing role in reducing both travel and parking demand over time. To satisfy current transit needs, Metro Transit is proposing to build high-speed express bus pullouts at the new 66`h Street and I- 35W bridge to link Richfield to the larger region, in particular to downtown Minneapolis. The above described transit stops are also intended to The Master Plan 6: 6 accommodate existing Metro Transit service providing connections to Southdale, the Mall of America and regional express bus service. None of these will appreciably reduce travel demand through or to Lakes at Lyndale. West 661h Street is the only east/west transit route within the City of Richfield. 11 It is intended that a circulator bus service be developed to service the 76`h and 77`h Street corridors and the Lakes at Lyndale Area. This would be coordinated with existing services, all of which would focus on a proposed new transit station within the district. Future transit is intended to include a timed-transfer service which integrates the new circulator service with existing express and. cross-town services. New circulator service within the district which connects neighborhoods to the district should produce a reduction in auto travel demand over time. f j • ?i neite ' •1 1 ALTUI?Lx r II G 66th Street sM!!r F STREETLEVEL LAN Traffic Quieting i t N 66th Streel SKYWAY LEVEL PLAN The primary measures intended to be implemented in the Lakes at Lyndale neighborhoods (other than those that are already in place) is traffic quieting, insuring that non-residential traffic does not use and abuse neighborhood streets. While careful consideration must be give to what and where such devices may be applied, alternatives intended to be considered include throating, speed humps (not bumps), traffic diverters and similar devices. Prior to the installation of traffic quieting measures, the extent of the problem must be established by the monitoring of traffic volume and speed. Generally • speaking, measures are not needed if residential street volumes are less than 500 vehicles per day, provided speed is not a problem. While residential traffic Example of an integrated transit shelter (plan and perspective) The Master Plan 6: 7 volumes are considered acceptable at 1,000 vehicles per day, volumes of this magnitude which are internal to neighborhoods are not desired. Of course, unique circumstances may warrant traffic quieting at lesser volumes. Emerson Avenue and 63rd Street are already carrying approximately 900 vehicles per average day and warrant immediate consideration. The neighborhood south of 67`h Street on the east side of Lyndale Avenue has the potential to be impacted by growing traffic volumes attributable to new development in the Lakes at Lyndale area. Here it is intended that looped streets be employed within the present 67th street right-of-way to connect Grand and Pleasant Avenues and the alley. This will result in reduced traffic volumes through the neighborhood while providing ample maneuvering capabilities for emergency vehicles and snowplows. 49 U The Master Plan 6: 8 / 0 / LYNI/'Yp AVE )r ? f r ? r •n O ? m ? Ail a a 3 v t .? r JA1 .. r•, 1 » I _ - _ - • GRAND AVE • .... ::,,. ?','. ., n C f _ • _ C f ?F. 61 'Y'f rl ?? a ICI il o W ? rA WJ ,y _ A E? ' ? { Y 3 ? C ?qr C Q q t, q q w • Y C ,V9 O ¦ 0 V) V W 9 V q 01 1`0 q y F- tN F- F- m h- • Ji Sri .. • •- ? ? ? C4 t I`t I ?.IJ3 --,r.'1?.? LA j 1 ".? M1 I ff U IL ts:x_ M' L J . , i 1 - - u1 owl - • I _ _ _ ? ? -. , .::'?'_'f?!? ? W_ _ 400 n 44, \ 4. _.. \ -??. •,_. .. as wraw - 71 -. _ i;` i 40 PART SEVEN: The Design Guidelines In looking at the Lakes at Lyndale area as it is today, you can see some of the major forces that shaped the district. One of the major forces includes Lyndale and 66`h Street. As the automobile became the transportation mode of choice, the roads were widened and parking lots spread out in front of the commercial buildings. The pedestrian environment took second place, and pedestrians were left with un-crossable intersections and seas of parking lots to cross in order to get to business entries. Another force that shaped the district is the Lakes. New high-rise residential apartments became desirable places to live as they offered views of the lake's natural amenities, and trails around the lakes offered pedestrians a refuge from the busy, pedestrian hostile street environment. As these and many other forces shaped the Lakes at Lyndale area, citizens, business owners and city officials began to wonder how they might control these forces in the future in order to improve the livability of the district. The Vision statement and Guiding Principles where created to guide these and any future forces such that the Lakes at Lyndale area would develop into a place they desired. While the Vision Statement and Guiding Principles are the goals of the Lakes at Lyndale area, the design guidelines are detailed directions to be used in the development of district structure, public spaces, redevelopment sites and buildings in order to achieve the Vision. • The Design Guidelines are a written set of intentions and directives that need to be followed in order to create the kind of district the Vision Statement and Guiding Principles describe. The Draft Master Plan can be used as an example for the general configuration of redevelopment within each block. Actual redevelopment will vary somewhat from the master plan, but the Design Guidelines must be followed to insure continuity within the district and consistency with the community vision. Guidelines have been developed for district structure, public spaces, redevelopment sites, and buildings. 0 Design Guidelines 7:1 1.0 District Structure 1.1 Land Use and Buildings Intent: Create a higher intensity of mixed-use development that creates an attractive and convenient place to live, shop, and visit. • Allow higher intensity development that integrates employment, shopping, living, entertainment, transit, and public spaces and facilities. This intensity of mixed-use encourages an active pedestrian district, where many opportunities can be created for social interaction and neighborly gatherings • Encourage a variety of uses to attract people throughout the day and night • Increase the number of lifestyle housing opportunities within the district • New development within the core should respect adjacent residential neighborhoods, through implementing traffic quieting measures, odor and noise buffers, and creating pedestrian connections if deemed necessary. • Develop taller buildings at the corners of 661b and Lyndale to create a focal point at the center of the district. • Building height should respect existing residential views. • Building corners are prominent features within the district and should take advantage of the potential for district highlights. Incorporate exciting entrances and small plazas to invite activity. 1.2 Streets and District Identity Intent: Streets in the district should have identity and help identify locations within the district. As a public space, they should offer pleasant circulation for motorists and pedestrians, create identity for the district and provide opportunities for casual encounters among residents. • The district identity should build on the Garden Village theme. Care and order should be evident in the patterns. Structures should be at pedestrian scale, made of quality materials with surfaces of warm brick, wood and glass. Plants, ranging from street trees to colorful annual flowers should be used to enliven and soften the urban edges. Like a garden, the district should have many inviting paths, leading to opportunities to meet neighbors, shop, eat, or stroll over to the lakes. • Lyndale Avenue and 66`h Street are the main crossroads of the district and special streetscape amenities should be applied. • District identity should culminate at the intersection of Lyndale and 66th through increased building mass, active building uses with entrances on street, and small corner plazas with pedestrian amenities 1.0 District Structure Design Guidelines 7:2 • Develop the parkway loop as a pleasant circulation route within the district for pedestrians, bicyclists and motorists, as a connection to the lakes, as a definable edge to the district core, and to service businesses. • Buildings and district activities should spill onto the street and become part of the identity people see as they pass through and circulate within the district. • Locate Identity features at important intersections at the edges and within to mark the district and to build on its character. • Provide public spaces along the street for resting, entering buildings and stopping to chat with friends 1.2 Transit Intent: Provide a pleasant transportation alternative to the automobile such that less space need be devoted to parking surfaces, driving lanes, and traffic congestion may be reduced. • A transit stop on both sides of 66`'' Street east of Lyndale Avenue as a safe and secure shelter, integrated with another active use or business. • A transit station on 66`'' street west of Lyndale Avenue as a safe and secure shelter, integrated with other active uses or businesses. • Shelters are to be integrated with pedestrian ways to make them more readily accessible. • The transit stop and station are to be architecturally integrated and • attractive community features. • Create additional transit shelters as needed such that they reflect the character of the district and are part of a visible pedestrian corridor. 1.3 Pedestrian and Public Spaces Intent: Make it safe and pleasant to walk around and through the district such that walking becomes a viable option for residents and visitors of the district • Provide continuous sidewalks along all streets with safe pedestrian crossings at each corner, combine and limit curb cuts that interrupt the sidewalk and create unsafe conditions. • Provide pedestrian paths from the street to the main entrance of each building • Set up a network of interior pedestrian routes that interconnect parking, residential, office and retail, such that each site is part of the district pedestrian system (refer to master plan for pedestrian ways) • Provide small gathering places along the pedestrian routes for people to rest and socialize • Provide skyway connections between all four quadrants of 66"' Street and Lyndale Avenue that have entries integrated with active businesses, residences or parking structures E Design Guidelines 7:3 0 LJ i 1.4 Richfield Lake Intent: Richfield Lake should be maintained as a natural area, with water quality improvement measures, improved pedestrian connections, and expansion of'tree canopy into the district. • Large expanses of continuous impervious surfaces such as parking lots should be prohibited. Encourage parking structures and tree shaded smaller lots to reduce water-warming surfaces. • Create a system of surface water channels and ponds around Richfield Lake to filter run off and collect sedimentation • Preserve and enhance vegetative buffer around Richfield Lake to filter surface water before it reaches the lake • Create improved pedestrian access to the Lake • Create greenways of tree plantings reaching from the lake up into the district along 65"' Street and within blocks. • Improve the views and appearance of pedestrian entrances to Richfield Lake, remedy erosion problem areas, address accumulating litter, and vegetate edges of trail to limit goose issues. 2.0 Public Spaces 2.1 66th Street and Lvndale Avenue StreetscaDe Intent: Develop an attractive and consistent streetscape along Lyndale Avenue and 661" Street within the redevelopment area to establish a strong district identity and an inviting street environment for pedestrians and motorists. • Secure a 100 foot R.O.W. along 661 Street from Lakeshore Drive to Pleasant Avenue. This will insure 72 feet for roadway (four driving lanes, one turning lane and an 8 foot median), and 14 feet for a boulevard and sidewalk on both sides of the street. • Secure a 100 foot R.O.W. along Lyndale Avenue from Lakeshore Drive to 64m Street. This will insure 72 feet for roadway (four driving lanes, one turning lane and an 8 foot median), and 14 feet for a boulevard and sidewalk on both sides of the street. Design Guidelines 7:4 2.0 Public Spaces Sections showing street and sidewalk widths through 66th Street and Lyndale Avenue (Design Guideline 2.1) • Create a buffer between the street and sidewalk using an eight-foot boulevard for street trees, lampposts, and other street furniture. • Create safe crossings of 6611' and Lyndale at intersections with pedestrian `islands' on 8 foot medians. Incorporate some kind of buffer on the median (i.e. bollards) • Create a plaza with an identity feature at each corner of Lyndale Avenue and 6611, Street as an inviting place for people to gather. (Suggested features include: a clock at the southwest corner, incorporating existing sculpture at northeast corner, and using common unifying planters in each plaza.) Refer to the Street & Pedestrian Improvement Guide for details on the following design guidelines: • Place pedestrian scale streetlights at even intervals along Lyndale Avenue and 661 Street. • Plant street trees at even intervals along Lyndale Avenue and 661h Street. • Provide pedestrian amenities such as benches and waste receptacles within the "core" and in other high pedestrian use areas. • Require low screening of parking lots from the street and sidewalk. 0 0 Design Guidelines 7:5 i I svuiEni special sheetscape 9reenways identity elements r-- I I• ? i i if i Plan of Streetscape & Identity Features (Design Guideline 2.1) I• Plan of Streetscape and Identity Features ?.v parkway enhanced street'malnstreef Design Guidelines 7:6 Street and Pedestrian Way Improvement Guide 0 is • Lighting Plant Materials Dimensions and Materials and Character nhance Pedestrian Street tree 30-40ft Components • 100ft ROW, 72ft • The cross streets of the business Streetseapas Lighting spacing in decorative roadway with 8-20ft area core are brightly lit and active. Spacing 60-80 ft, grates, use White Ash median, (depending on • Small gathering places are present Height 12-18ft, • Parking screening of turn lanes) at building entrances along street. Ft candles .9fc height 22-28" using 14 foot wide paved • Garden identity is present in Uniformity ratio 2:1 plantings and or brick pedestrian area, 6 ft for planters, street trees, and street and metal fencing walkway, 8 ft for street amenities such as benches, necessary along any amenities such as pedestrian lighting and material use. pedestrian corridors benches, trees, lighting, Double lamp light posts offer shop displays bri hter effect special Pedestrian Street tree 50 ft • 6 ft sidewalks with 8 ft • Sidewalks, street trees and lighting Streetscapes Lighting : spacing in grass grass boulevards lead people to the district core and Spacing 100-150ft, boulevard, unify the area Height 12 18ft, Use White Ash Ft candles .9fc Uniformity ratio 4:1 Parkways Pedestrian/Street Street tree every 35ft • Designed for 25 mph • Narrow, tree lined roadway, Lighting: • Large, tightly formed speed. offering slow, but continuous Spacing 105-140 ft, shade tree such as • Road width of 26 feet circulation around business core Height 18-20ft, Little leaf Linden Limit on street Singular lamp light posts create a Ft candles .5fc parking, additional lanes lower level lighting effect Uniformity ratio 6:1 and curb cuts. • Boulevards with raised planters • 6 foot sidewalk, 8 ft add to district garden identity and boulevard, 8 ft create gateways bituminous trail on park side of roadway Pedsfrtaf#<f< Walkway • Perennials supported • 12-14 ft sidewalks • Perennials supported by colorful ;;:;:{Nay&i f#It» Lighting: by colorful annuals in • Raised planters annuals in raised planters, hanging 6vks'; ;;; Spacing varies raised planters, and • Benches baskets to give corridors a cared-for Height varies, 12- hanging baskets , Area with tables and and garden-like look 18ft pole or building chairs for shared • Use of rich textures and warm mounted, lower outdoor eating colors with building detailing and path and wall lights p windows facing the corridors. Use of acceptable wood for seating elements Ft candles .5fc Use of'color, lighting and detail Uniformity ratio 2:1 accentuated at building entrances and pedestrian gathering areas Greenways,l ; Pedestrian . A mix of trees, shrub • 6 ft sidewalk • The identity of the Lakes should be (links to Lake] ''; Lighting: and perennials are brought into the district core through Spacing 100-150 ft, appropriate along creating tree corridors that reach to Height 12 18ft, these corridors Lyndale and 66 h, and incorporating Ft candles :5fc pedestrian ways from the business Uniformity ratio 4:1 core to the Lake's trail system Parking Lots General Lighting: • Parking screening of • Sufficient trees must • Shoebox type pole lighting fixture Spacing varies, height 30 - 38" using be planted to achieve • Single or double lamp per pole Height 25 30ft, plantings and/or brick 60% shade of lot in 10 • Dark bronze finish Ft candles 1.Ofc and metal fencing to years Uniformity ratio 2:1 achieve 50 % opacity Pedestrian in all seasons is connections from street necessary along to building entries must pedestrian corridors be provided Design Guidelines 7:7 V 2.2 Parkways Intent: Develop the parkway loop as a pleasant circulation route within the district for pedestrians, bicyclists and motorists, as a connection to the lakes, and as a definable edge to the district core, and as access to businesses. • Plant additional vegetation , where appropriate for buffering neighborhoods from businesses, enhancing natural areas, and creating garden-like amenities along the parkway. • The parkway should be built for a design speed of 25mph. • Site automotive circulation should be designed with shared entries and exits between sites to help minimize curb cuts • Consider traffic quieting techniques along the parkway if speeding motorists become a problem. • Create safer mid-block pedestrian crossings on Lakeshore Drive and 651 street to provide better pedestrian access to the lakes. Consider raised pedestrian crossings with signage. • Create safe crosswalks at road intersections to provide a continuous pedestrian and bicyclist route. • n LJ Refer to the Street & Pedestrian Improvement Guide for details on the following design guidelines: • Build 6-foot sidewalks with a typical minimum 8-foot boulevard separation from the street (see sections) • Plant street trees at .e 40 ?q .?n Men M °°? eaw«ad w r w A 5) 6711 7 strest/Padcway i ?ou?p • Provide pedestrian NO; POW scale lighting at regular intervals along parkway loops. • Build a multi-use separated 8 foot trail along the parkway loop. Link to regional trail, planned along Pleasant 6) Railroad Parkway south Avenue. even intervals along Lakeshore Drive, Along 651 from the 661h intersection to Pleasant Avenue, along Pleasant Avenue from 651h to 67th, along 6711 from Lyndale Avenue to Pleasant Avenue. Design Guidelines 7:8 2.3 Entry markers Intent: Mark the entries to the Lakes at Lyndale area redevelopment district with features of a garden theme to reinforce its identity as a district Refer to District Plan of Streetscape and Identity Features for locations: • Develop Entry gardens as small gathering places at the northwest corner of Lyndale Avenue and Lakeshore Drive and at the southwest corner of Lyndale Avenue and 641 Street. • Entry gardens should be created with a definable space and structure using garden elements such as wooden trellis work, colorful perennials and annual plantings, places to sit, and paths. Soft lighting should be incorporated at these sites to extend their use and identity into the night. • Develop linear entry gardens along Lyndale Avenue at Lakeshore Drive, 65`h, 60 and Crosstown 62. • Develop linear entry gardens along 66h Street at Lakeshore Drive, Pleasant Avenue, and Nicollet Avenue. • Linear entry gardens are raised low planters along the boulevard that incorporate the district name and colorful annuals to mark the garden district. • 2.4 Gathering places Intent : Create Public gathering places of varying size and type to encourage people to meet and spend time in the district • A public gathering place overlooking Richfield Lake should be part of any redevelopment along the east side of the Lake. While a few public connections to the lake are encouraged, the natural edge surrounding the lake should be maintained and enhanced to preserve its wildlife habitat and scenic value. • Create small plazas at each corner of 6611 and Lyndale Avenue to invite pedestrian activity at the core of the district. Require buildings to front the plazas with access at the corner. • Encourage outdoor gathering spaces adjacent to sidewalks especially adjacent to entries of restaurants, cafes and other active businesses or residents. • Provide safe comfortable stopping places along pedestrian ways for pausing and resting. These areas may include benches, drinking fountains, and display windows. • All public areas should be designed to encourage use. Characteristics that encourage frequent use include easy access, location on a pedestrian corridor, safety and visibility, sunny exposure, locations at building entries. i Design Guidelines 7:9 • 2.5 Pedestrian ways Intent Establish continuous walkways within the district to provide safe, pleasant and uninterrupted pedestrian circulation and access to all businesses. • Use the Draft Master Plan's pedestrian routes as a guide for walkways within each block as new site development occurs to insure a continuous coherent pedestrian system. • Encourage new site developers to provide pleasant pedestrian corridors and gathering areas within each block as a refuge from the busy streets. • When overhead pedestrian crossings are created they should be designed to create an identity and gateway to the core. Skyways should have transparency to offer visibility. Skyways should be used to connect active business areas, parking ramps and residential complexes. • Unsafe pedestrian situations, such as curb cuts, right turn lanes, uneven paving and limited visibility need to be limited and addressed where unavoidable. 3.0 Site Development 3.0 Site Development 3.1 Parkin Intent : Configure and locate parking to insure that buildings and pedestrian i areas are the focus of the district. Use Draft Master Plan as guide to parking within each block • Minimize parking areas in front of buildings, (i.e. between the building and the street). Exception for block on west side of Lyndale Avenue where new mixed-use development relates to the lake and parking in front allows views of tree canopy around lake from Lyndale Avenue. • Encourage underground and structured parking within each block to achieve a higher intensity of use. • Place parking behind buildings, with minimal parking alongside. • Prohibit parking lots at street corners • Make access to parking areas visible from the street Refer to the Street & Pedestrian Improvement Guide for details on the following design guidelines: • Lighting and landscaping should be consistent throughout the district • Parking areas should be screened from the sidewalk i Design Guidelines 7:10 3.2 Building position on site • Intent : Insure that buildings help form the pleasant and useable spaces that build the character of the district and contribute to the public spaces of the street and sidewalk. • Encourage extension of buildings that connect the interior activities of the building with the street. Examples may include awnings, door details, special paving, temporal signage and planters. • Use elements that are pedestrian in scale, as opposed to those that are meant to relate to motorists. (i.e. prohibit use of large, tall signs) 11 0 Design Guidelines 7:11 Building Setback and Lot Coverage Guide • LA_ _r 7--f' G r i i 3.3 Cohesion between sites Intent : Use the Draft Master Plan as a guide in redeveloping each block such that parking, street access, pedestrian walkways and uses are coherent and effective. • Encourage the development of uses that creatively share parking by time of day among a variety of uses in order to reduce the total amount of land dedicated to parking • Minimize curb cuts and vehicle access to Lyndale and 661 to avoid traffic problems and pedestrian hazards. 0 Control the use of freestanding signs and pylon signs. Require freestanding signs to be scaled to be readable from both a motorist and pedestrian point of reference, (from within 200ft) - no tall pylon signs. Encourage signs that are an integral part of the buildings. • Lighting and landscaping should have consistency throughout the district. Refer to Street and Pedestrian Improvement Guide Design Guidelines 7:12 Building Setback Zones a 3.4 Consideration of adjacent residential neighbors Intent : Establish buffers that address traffic, odor and noise that may effect adjacent residents • The creation of the parkway will provide a buffer between single family residential and businesses. Additional plantings, fencing and limited access can be used to increase the buffer in areas where deemed necessary. • Require businesses to have maintenance schedule to upkeep buffers, including regular collection of litter from grounds and planted buffers.. • Discourage use of residential streets for short cutting by incorporating traffic quieting measures where appropriate. • Provide pedestrian connections to the pedestrian corridors of the redeveloped district if desired by the neighborhood 4.0 Buildings 4.0 Buildings 4.1 Character/materials/stile Intent : Buildings should help form the character and identity of the district and should be of quality design and materials • Prohibit typical corporate franchise designs that could be found "anywhere", instead require building design that relates more to the district, using quality materials such as masonry brick, with large areas of glass for visibility and activity at street level. • Prohibit large, blank wall surfaces; require windows, doors and other means of articulating large surfaces. Require vertical articulation on exterior walls at intervals of at least 20ft along the length of visible walls. • Incorporate public use spaces such as entrances, display windows, and benches along building edges to connect buildings to pedestrian walkways. • Require buildings to incorporate warm colored brick in exterior construction. • Require at least 50% window surfaces for all street level walls • Require integrated mechanical systems into the form of the building, not as appendages. • Require trash storage areas to be enclosed and incorporated into buildings. • Building layouts should offer a mixture of uses and flexibility of uses over time. Design Guidelines 7:13 • 4.2 Relationship/position/entries Intent: Buildings should support the identity of the district, support pedestrian use and have a strong relationship to the street Refer to Building Setback and Lot Coverage Guide for building position on site • Place buildings at the street frontage within the core of the district • Create buildings that address the street, with front doors to the public space at the street as well as access from parking areas. • Buildings should have their primary axis orientation perpendicular or parallel to the street it fronts, (no twisted buildings). • Entries should have pedestrian connections to street sidewalks. is 0 Design Guidelines 7:14 0 PART EIGHT: Next Steps Development Staging The master plan is a guide for future development. It is not carved in stone. The staging of development is also intended to provide guidance but will not likely occur exactly as proposed. In other words, specific projects will occur only when they are found to be feasible and they will likely be spread over the next 20 or so years. In some cases, there is an imminent and recognizable need or opportunity for redevelopment within the Lakes at Lyndale area. In others, the master plan will only serve as a guide to development to make sure that developer and landowner proposals are consistent with the master plan. Areas of highest priority are those located in the southeast and southwest quadrants of 66th Street and Lyndale Avenue. The RSA Urban Village is in final planning stages and is intended to be under construction as early as 1999. The Gramercy Housing Co-op and the VFW projects will also begin in 1999. The City is also in the process of seeking solutions for post office congestion and the decline of commercial development at 63rd Street and Lyndale Avenue. The important thing is that some considerable amount of the development within the Lakes at Lyndale area will occur in response to development proposals from developers and landowners and will not be. initiated by the City. What this means is that developments could occur out of sequence wherever there is a proposal that is financially feasible. o Flexibility While this master plan is intended to establish patterns for the redevelopment of the Lakes at Lyndale area so that the resultant development in all of the projects within it will relate one to another, the plan is also intended to have a high degree of flexibility. For example, the plan indicates that a cinema should be located in the northeast quadrant of 66th Street and Lyndale Avenue because of its marque value. While this is an important principle, a cinema could occur in several other locations within the Lakes at Lyndale area and not violate the basic principles of the plan. There may be proposals from existing landowners which can be found to be consistent with the overall Lakes at Lyndale area Plan. The important thing is that there needs to be an entertainment component somewhere in the Lakes at Lyndale area. Its location can vary. Also, regarding flexibility, the intensity of development and the height of buildings is entirely dependent on project feasibility. It is intended that there be a high degree of flexibility in building height and intensity to allow feasible projects to be built. The intensity of development must, however, be balanced with the traffic capacity of streets. On the other hand, the urban design principles of this plan are not intended to be violated. Buildings should have a relationship with the street, as intended by the plan, and parking should be a use that is highly supportive of but not particularly visible in the plan. Also important is the future use of Lakes at Lyndale for rather passive wildlife interpretation purposes. The plan does not intend to allow flexibility to permit more active uses of the surface or edges of the lake. Principles are not intended to be flexible because they will change the very character of the district. Implementation measures are intended to be flexible so long as they conform to the principles. ;text Steps 8:1 11 11 ti 4, Traffic Solutions A traffic analysis was completed for the Lakes at Lyndale area to determine the capacity of the existing roadway system and its ability to carry future traffic volumes. The study provides general conclusions for the future and more specific responses due to the Urban Village development proposal at the south east quadrant of 66"' Street and Lyndale Avenue. The study identified several key issue areas as follows: 1) the 66"' Street and Lyndale Avenue intersection, 2) potential conflicts in turning movements at the Richfield Bank and Trust Company entrance to Lyndale Avenue and 3) increases in traffic on residential streets south of 67 h Street. In general, the density of development will have to be balanced carefully with the intensity of development to minimize significant congestion. The identified areas presently function adequately. Grand and Pleasant Avenues carry approximately 500-vehicle trips per day in the area south of 67"' Street, well within. accepted residential street expectations. The intersection of 66"' Street and Lyndale Avenue currently functions at the borderline between level of service "C" and "D" during peak traffic hours. "D" service represents an acceptable level of congestion. This is an acceptable level of intersection operation. Current turning movements in and out of McDonalds, Grand Avenue and the Richfield Bank and Trust have not produced a significant crash history. Potential problems exist at all such locations as the development of the Lakes at Lyndale area evolves. In the post-development scenario, the increase in traffic volumes on Grand and Pleasant Avenues can be dealt with in a number of ways. While the projected volumes, post- development, are within acceptable residential street volume parameters, (less than 1,000 ADT) they will be higher than at present. The preferred solution is one that creates a loop-street within the existing 67"' Street right-of-way and connects Grand to Pleasant Avenues. This will reduce traffic to lower levels than at present. Because of the substantial reduction in through traffic, it will also minimize the perceived speed problem on these two streets. The intersection of West 66"' Street and Lyndale Avenue is a more difficult problem. At full development of the Lakes at Lyndale area, the intersection will operate at a level of service F. This assumes no improvements to the intersection. In addition to the level of service problem, there will be insufficient space to accommodate northbound Lyndale Avenue to westbound 66 h Street left-turns which could have a direct impact on the existing Richfield Bank and Trust and Lyndale Hardware left-turns at intermediate points between 66th Street and 67th Streets. Alternative solutions are being evaluated. c: Next Steps 8:2 tr -1 Wti The following chart represents the options that are available to address the level of service (congestion) problem at the 66 Street and Lyndale Avenue intersection: Potential Street Level of Comments bn rvement Actions Service No change F Unacceptable congestion during PM peak hour Right-turn lanes only E Ri ht-turn lanes can simply be added Dual left-turn lanes D Requires additional right-of-way and the shifting of the roadway to center it within the right-of-way Signal timing E Assumes change from protected to protected/ permitted signal timing Reduce land use intensity ? May impact project feasibility and community objectives to increase urban density of the core Combination -- D Adequately resolves congestion Right-turn lanes plus problem at 66"' Street and Lyndale signal timing on Avenue north/south legs of L ndale Avenue * Ifjust one and no other actions are taken. While the intersection level of service can be fairly readily solved, accommodating existing left-turn movements for existing businesses along Lyndale Avenue south of 66"' Street is more problematic. There does not appear to be a solution which would protect left-turns for both Richfield Bank and Trust and Lyndale Hardware except on an interim basis. None of the above actions appear to accommodate left-turn movements at intermediate locations. There is not sufficient room to accommodate three-left-turns at 66th Street, Richfield Bank and Trust/Lyndale Hardware and 67th Street. Potential solutions are as follows: 1) Permanent-rebuild of Lyndale Avenue, lose the intermediate left-turns and orient all access to 67"' Street where adequate left-turning movements can be accommodated. This would provide a minimum of 270 feet of protected left-turn lane for northbound Lyndale to westbound 66th Street and 120 feet of left-turn capacity at 67"' Street with an adequate taper in between; 2) Interim- would be a solution that allows left-turns to continue to be made into Richfield Bank and Trust with a protected left-turn lane but leave the lesser volume left-turn lane to Lyndale Hardware to be made from an unprotected lane. So long as crash problems do not result, this interim solution could continue. When the west side of Lyndale is redeveloped, all access would focus on 67°i Street and the interim left-turn lane to the west would be eliminated. All would be done in conjunction with signal timing adjustments for the north and south approaches of Lyndale Avenue and additional right-turn lanes at all four intersection corners. 0 Next Steps 8:3