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05-15-95 agendaCITY OF RICHFIELD MONDAY, MAY 15, 1995 CONCURRENT HOUSING AND REDEVELOPMENT AUTHORITY/ CITY COUNCIL/PLANNING COMMISSION MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA CALL TO ORDER CONSIDERATION OF MERIDIAN CENTER DEVELOPMENT CONCEPT APPROVAL FOR CLOVERLEAF SITE; TOLD DEVELOPMENT COMPANY HRA LETTER NO. 25 ADJOURNMENT REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING IMMEDIATELY FOLLOWS CONCURRENT MEETING COUNCIL CHAMBERS AGENDA CALL TO ORDER APPROVAL OF MINUTES OF REGULAR HRA MEETING OF APRIL 17, 1995 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 6318 NICOLLET AVENUE HRA LETTER NO. 26 3. CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF RICHFIELD REDISCOVERED COMPLETION CERTIFICATES TO: • MARLIN GRANT HOMES, INC. FOR 6828 ELLIOT AVENUE, 6404 15TH AVENUE, 6500 14TH AVENUE AND 7525 GIRARD AVENUE • ROCK PORT HOMES INC. FOR 6404 HUMBOLDT AVENUE • SUSSEL HOMES INC. FOR 6625 STEVENS AVENUE ' • PARSLEY BUILDERS FOR 6821 LOGAN AVENUE HRA LETTER NO. 27 4. CONSIDERATION OF RESOLUTION APPROVING MODIFICATIONS TO RICHFIELD REDEVELOPMENT PROJECT PLAN RELATED TO RICHFIELD REDISCOVERED HOUSING PROGRAM CONSISTING OF: • MODIFICATION N0.4 TO REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREAS A AND B; • MODIFICATION NO. 1 TO TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT REDEVELOPMENT DISTRICTS "A-3" AND "B-3"; • TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT REDEVELOPMENT DISTRICTS "A-4" AND "B-4"; AND • REQUESTING RICHFIELD CITY COUNCIL TO CONDUCT PUBLIC HEARING RECOMMENDING APPROVAL OF .PLANS HRA LETTER NO. 28 5. CONSIDERATION OF RESOLUTIONS REGARDING RIGHT OF ENTRY; CSM, PHASE HRA LETTER N0.29 6. CONSIDERATION OF AUTHORIZATION TO SOLICIT-BIDS TO TRANSFORM EXISTING HOME AT 7424 FIFTH AVENUE HRA LETTER NO. 30 7. CONSIDERATION OF MIDPOINT REPORT ON "TOGETHER WE CAN" FROM JOHN SZARKE AS PART OF COMMUNITY APARTMENT PROGRAM HRA LETTER NO. 31 8. EXECUTIVE DIRECTOR REPORT 9. CLAIMS AND PAYROLL ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861-9702. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 31 Agenda May 15, 1995 Issue Statement: Midpoint report on "Together We Can" from Mr. John Szarke as a part of the Community Apartment Program. Background: On February 28, 1995, the HRA retained the services of Mr. John Szarke. He was hired to formulate "Together We Can", an apartment resident self-sufficiency program. Recommended Motion: Accept and discuss a presentation regarding the attached interim report. Basis of Recommendation: 1. The report in Exhibit A indicates the contacts Mr. Szarke has made as a result of data gathering. Resource utilization has been extensive. 2. Mr. Szarke has met often with a working group consisting of Camillo DeSantis, Mike Welsh (Bloomington-Richfield Family Services), Laura Klein (CAP), Bill Schatzlein (CAP), Denny Johnson (staff) and Bruce Palmberg (staff). 3. This report will be utilized as a frame work to prepare aself-sufficiency strategy for presentation to the HRA in August. Alternative Recommendation: 1. Postpone the report presentation. 2. Direct the report to be modified. Discussion/Decision Mode: To present strategy in August, it is important that the direction for that strategy be established as soon as practical. Respectfully submitted, James rosser Executive Director JDP:ds "Together We Can" Midpoint Report May 15, 1995 John Szarke Research that I have completed so far is included in Exhibit A. During the past two months, I have also met on four occasions with an advisory group consisting of Bruce Palmborg, Dennis Johnson, Camillo DeSantis, Mike Welsh, Laura Klein, and Bill Schatzlein. I am grateful for their valuable input. This midpoint report confirms that there is a great need for developing an economic self-sufficiency program in Richfield. I have included some observations about poverty within block groups in three different tracts in Richfield; Block Group 2 of 248.02; Block Group 1 of tract 249.02 and Block Group 1 of tract 249.03 (Exhibit B). These block groups in the selected tracts have a high percentage of renters as is indicated in the following 1990 census information: RICHFIELD TRACT TRACT TRACT CITY 248.02 249.02 249.03 CHARACTERISTIC, 1990 BG 2 BG 1 BG 1 Total population 35170 1415 1121 848 of households that own 67% 18% 64% 45% % of households that rent 33% 82% 36% 55% Children in Poverty in Richfield 1. In the City of Richfield, 9% of children were in poverty in 1989. Poverty among children was 2 to 3 times higher in the selected block groups of tract areas than in Richfield as a whole. 2. The targeted block groups had the following percentages: a. In Block Group 2 of tract 248.02, 30% of the children lived in poverty (72 children in poverty). b. In Block Group 1 of tract 249.02, 20% of the children lived in poverty (41 children in poverty). c. In Block Group 1 of tract 249.03, 24% of the children lived in poverty (56 children in poverty). 3. It is also significant that poverty is higher in single parent households (mostly female headed) in Richfield, 27% of all single parent families with children under 18 were in poverty in 1989. 60% of single parent families with children under age 5 were in poverty in 1989. During the next few months, I will be focusing on the following possibilities that may be recommended in the August report as ways of assisting individuals within a "pilot group" of apartment residents become economically self-sufficient. If the City of Richfield HRA acquires Sage Apartments, some of the residents in Sage could be in this "pilot group." 1. Recommendations to establish a "Service Team." The purpose would be for agencies and/or institutions to more easily collaborate and cooperate in their joint effort of effectively and efficiently serving apartment residents. (See Exhibit C) 2. Recommendations to develop a "Mentor Program." The purpose of mentors would be to provide emotional support to apartment residents, help them set goals and action plans and refer them to available resources. Mentors might also provide assistance to apartment residents in developing leadership skills, employment interviewing skills, etc. Mentors would probably be volunteers who would need screening, training and supervision. 3. Recommendations to improve communications and information to apartment residents. Examine ways of improving communications and providing timely information to apartment residents. One step might be to deliver to a pilot group the same City of Richfield information and communications updates that are currently sent to private homes (Your City, Leisure Services Brochure, etc.). Another recommendation may include the publication of a resource booklet of available services often needed by individuals seeking economic self sufficiency. The next steps will be: • Identify a pilot "service team" and dialogue with. them about their potential role in serving a pilot group of apartment residents seeking to become economically self-sufficient. • Identify potential mentors and dialogue with them about their role in serving a "pilot group" of apartment residents seeking economic self-sufficiency. • Investigate the steps necessary to provide better communication and information to apartment residents. • Present action plans and recommendations for implementation. a. Develop mission statement. b. Develop goals, strategies, action steps, and evaluation methods. c. Recommend needed personnel to coordinate or administer this program. "Together We Can" Exhibit A Midpoint Report John Szarke May 15,1995 Resources for my research include: 1. Demographic Economic and Social Trends Affecting People of Richfield South Hennepin Regional Planning Agency (SHrPA) 1993. 2. Family Needs: A Survey of Low Income Tenants in Bloomington and Richfield (SHrPA) 1993. 3. Richfield's Renters Study, September 1994, Decision Resources. 4. Family Self-Sufficiency: Linking Housing, Public Welfare and Human Services National Association of Housing and Redevelopment Officials. 5. Partnerships for Success: A Mentoring Program Manual. 6. The Community Collaboration Manaul, National Assembly. 7. South Hennepin Family Services Collaborative (Draft SHrPA), 1995. 8. Department of Housing and Urban Development, Self Sufficiency Program Guidelines, 1991 9. Child Care: A Profile of Needs in South Hennepin County, (SHrPA), 1993. 10. The job Gap Study, Jobs Now Coalition, January, 1995. 11. Northwest Hennepin Human Services Council 1994 Annual Report. 12. Apartment Program, Northwest Human Services Council. 13. Putting Children First, Report of the Child Care Task Force Commission on the Economic Status of Women, February, 1991 14. A Woman's Place: A Guide to Women's Legal and Economic Rights in Minnesota Commission on the Economic Status of Women, November, 1991 Individuals I have met with include: • Jeanne Massey, Senior Planner/Director, South Hennepin Regional Planning Agency. • Sue Gunder, Self-Sufficiency Coordinator, Catholic Charities. • Dave Greeman, Project Coordinator at Northwest Human Service Planning Council. • Kate Sweetzer, Jewish Vocational Services, St. Louis Park. • Mike Brinda, Neighborhood Employment Network, Minneapolis Mayor's Office. • John Vittera, Mobile Job Bank. (Funded by McKnight Foundation) • Richfield Human Services Planning Council. • Betsy Christianson, representing the Richfield Health Board. • Mike Welsh, Bloomington/Richfield Family Center Program Coordinator. • Laura Klein, Coordinator Community Initiative Program, Project for Pride in Living. • Roger Heil, Metropolitan Transit Commission. • Betty Hayes, Refugee Resettlement Coordinator, Lutheran Social Services. Annette Hoyhtye and staff at Community Resource Center in Brooklyn Park. • Karen Kingsley and staff at Community Action Suburban Hennepin (CASH). • Arlene Dixon and Mary Schwenke, (Highland Management Company). • Ann Fendorf, West Seventh Community Center's Self-Sufficiency Director, St. Paul. Census Block Group Names in Richfield ~ Exhibit B 0241.00:4 0241.00:5 `•'• 0244.00:3 247.00:5 02 1 00:1 0247.00:1 ~ 0 49.01:2 . 0244.00:2 0249.01:1 c 0241.00:3 0241.00:2 0244.00:1 242 00:4 0247.00:2 0249.02:3 . •:~:~:~ ' '' . 0242.00:1 247.00:4 ~ • 24 9 1)2~1•:~: 02 2.00:5 0247 00 3 ~ •:' . •'•' ~ ~~ •'•'• ".? 0245.00:1 . : -- :: • 2 0245.00:2 °o 0242 00 . : 0242 00:3 N 0249.02:2 •. •~ ~ . ~ 0248.01:1 ~?' : 248 01:3 . ^ 0243.00:3 0248.01:2 :: 0243 00:1 ~'• . 0 0246.00:3 0246.00:4 46.00:1 0248 02:1 f'1 .... ::;:::~,;,:;:;~ a . •:•:•.o•.•:•: 248.02:3 0 :::; ~~:::::~ 0243.00:2 ~ :::•' ';:;:':';':':~' ` 0248 02;2 :'` : :;.;.:o.;.;. 0246.00 :2 . . • . Block Groups Tracts Federal Poverty Guideline Family Povert, Line 1 person $6,310 2 people $8,076 3 people $9,885 4 people $12,674 5 people $14,990 The poverty line is argued to be too low because it is based on estimates of families' basic needs in 1963. Income is adjusted for inflation, but not in changes in work norms, lifestyles and family structures, all of which impact basic needs. Child care for example would be considered a basic need today that was not in 1963.. It is estimated that the poverty line today would have to be about 50 percent higher to be comparable, in terms of minimum consumption needs, to the standard set in 1963 (Ruggles, 1990). Exhibit C "Together We-Can" May 15, 1995 A pilot "Service Team" would be comprised of a representative(s) from agencies or institution(s) most commonly needed by individuals seeking economic self-sufficiency such as: family services, counseling, emergency assistance, public health, education, and employment counseling. The "Service Team" members could also assist apartment residents in connecting with other needed resources. Some of the available resources include the following (resources funded or partially funded by the City of Richfield are marked by an *): Bloomington/Richfield Family Center Community Education Hennepin Technical Bloomington Public Health * Cornerstone Advocacy Services * Storefront/ Youth Action * VEAP (Volunteers Enlisted to Assist People) * South Hennepin Regional Planning Agency * Park and Recreation * Public Safety * Greater Minneapolis Day Care * Senior Community Services * Senior Linkage Line * Senior Home Owners Repair Program * Share A Home-Lutheran Social Services HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 30 Agenda May 15, 1995 Issue Statement: Authorization to solicit bids to transform the existing home at 7424 Fifth Avenue. Background: The HRA purchased the referenced property in late November 1994 envisioning a transformation project. Working with a residential designer selected by the Richfield Visions Committee to promote good design in Richfield Homes, staff has formulated a preliminary scope of work and house design which would transform the property. A copy of the initial design work is attached. The proposed project takes a two bedroom home with. limited potential and transforms the home to accommodate: • a modern kitchen and adjacent main floor family room, • the addition of 1-1/2 bathrooms (to make a total of 2 1/2), • the addition of a master suite, • the addition of two bedrooms (to make a total of 4), • improved storage, • an attached double garage, • improved basement livability, • complimentary landscaping and outdoor family areas. Each item represents a type of project a Richfield homeowner might consider. When combined together, these items transform the home and become a resource to the HRA - an idea house - to promote good design and remodeling. The idea house would be available to compliment the remodeling fair and other events envisioned for later 1995 and through the spring of 1996. The home would be sold after its usefulness as an education and marketing tool is completed. Staff has reviewed the scope of work sufficiently with remodelers to discover: • Remodelers want to remodel, not buy, own, build and sell property as in Richfield Rediscovered. • The estimated cost of remodeling, $90,000 to $100,000 is too large a contract for a remodeler when they also have to buy the property, assume interim ownership responsibility and provide a performance security, and sell the home after completion. . Recommended Motion: Authorize a formal bidding process to secure bids and negotiate a contract to transform the home at 7424 Fifth Avenue. Basis of Recommendation: 1. The HRA has acquired 7424 Fifth Avenue to remodel. 2. The HRA is required to conduct a formal public bidding process with a contract of $90,000 to $100,000. 3. When acceptable bids are obtained and presented to the HRA, the overall financial feasibility of the project will also be discussed. Six transformation projects undertaken by homeowners in 1994 have demonstrated that the concept is feasible and salable. The property at 7424 Fifth Avenue could be an extraordinary education and marketing opportunity. Alternative Recommendation: 1. Modify the proposal 2. Defer action on a proposal at-this time. Discussion/Decision Mode: Staff would finalize a plan and scope of work and conduct a formal bidding process to finalize a remodeling contract by July 1995. Respectfully submitted, Jame .Prosser Executive Director JDP:cak Taa rt $3r7T~rn Ed~C£SS .t i~.~~N Ft~o~Ct~1C~Pr ~ 03C '' . Z ~~ 1 ~,jE~zLL~CEp'~" . . ." ~ _ G~ r+c S _ t.~t3.~ :" ~ .. ~ : . _ - - _ :.; .. , .~ _ 1VEW" )Nscx.a~a FitaSi" toOT,'~t6 ~\ - 'C` \ ' ) .j .. .. _, - 4 ~~oNc S;~aF•s.uAtrK ~EMac)E $r~.k .~ ~ ~_ .i ~ .. l'u c~~ ikT ~ j .~:rsrr~.i~ ~fl~ ft ~ , g'~lc.iivb ~ STf~~RS )) ' . ~ . . . . >. l - L _ .. ,t I i ~ - t: ~-~~.-~ -4L°irfrlZidc - - GJT'.t- ~ - . PiT ~REBv+cA ': ~Ro rr Gatirc - - R~n,:~u~ a.[ ANO JNSTt1LL f~~'iA~~~. ... •~dr'i1Ylv*a'~... WAt1.5 .. ~ ~C.oNG SLJl1{3 1 '~ ~ ~ .,. ,~ ~. 2; l mil`, ~ - .~._..- _ ... .. ~ -- ~ . HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 29 Agenda May 15, 1995 Issue Statement: Consideration of resolutions in support of right of entry, CSM, Phase II. Background• There is reason to believe that there maybe extensive soil contamination to the Phase II area. The soil of Richfield Mitsubishi maybe contaminated with tetrachlorethene. In recent weeks this chemical was discovered in the soil on the north side of 77 1/2 Street in the vicinity of the property previously occupied by Don's Appliance. Previous to occupancy by Don's, the property was used as part of a car dealership business. The chemical may have percolated to the soils on the Mitsubishi site. The current owner of the site has refused entry for purposes of environmental testing. There is also a basis to believe that the soil east of Mitsubishi maybe contaminated. The source may be a property which at one time was a dry cleaning establishment. The potential for extensive contamination is due to the prevailing direction of ground water flow, to the south and southeast. Recommended Motion: Adopt the attached resolutions which will help establish the need for the court to issue an order granting the HRA the right to enter the property. Basis of Recommendation: 1. There is a basis for believing that the soil is contaminated. 2. The Mitsubishi property owner is refusing access. 3. State law provides an orderly process to gain entry once a need is established. 4. If the soil is contaminated, it could be a costly liability which would affect the property value for acquisition purposes. Alternative Recommendation: 1. Delay consideration. 2. Refuse to act. Discussion/Decision Mode: District court has provided legal counsel the opportunity to submit documentation until May 17, 1995. Respectf submitted, . James rosser Executiv Director JDP:ds Feldmann/Mitsubishi Property Only May 15, 1995 Commissioner introduced the following resolution and moved its adoption: Housing and Redevelopment Authority In and for the City of Richfield Resolution No. Resolution Authorizing Entry for Environmental Testing WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield ("HRA") is a public body corporate and politic under the laws of the State of Minnesota, as amended, and is authorized by Minn. Stat. § 469.012 to acquire real estate by exercising the power of eminent domain under and pursuant to Minn. Stat., Ch. 117; WHEREAS, pursuant to Minn. Stat. § 117.041, Subd. 2., ". a political subdivision by resolution may enter property for _ purposes of investigation, monitoring, testing, surveying, boring, or other similar activities necessary or appropriate to identify the existence and extent of a release or threat of release of a hazardous substance, pollutant, or contaminant if: (1) The political subdivision has reason to believe the acquisition of the property may be required pursuant to an eminent domain proceeding; (2) The political subdivision has reason to believe that a hazardous substance, pollutant, or contaminant is present on the property or the release of a hazardous substance, pollutant, or contaminant may have occurred or is likely to occur on the property; and (3) Entry on the property for environmental testing is rationally related to health, safety, or welfare concerns of the political subdivision in connection with eminent domain proceedings." WHEREAS, the HRA-has commenced eminent domain proceedings to acquire the real estate described on Exhibit A attached hereto ("Subject Property"); RJL88423 RC125-95 1 Feldmann/Mitsubishi Property Only WHEREAS, said eminent domain proceedings (Hennepin Co. Dist. Court File No. CD2364) were commenced on behalf of the HRA pursuent to HRA Board of Commissioners Resolution No. 541, dated February 28, 1995 to implement the provisions of the HRA's Interstate- Lyndale-Nicollet Redevelopment Plan. WHEREAS, included within the Subject Property as Parcels 7 and 8 is certain real estate located at 901 West 77-1/2 Street and 920 West 78th Street, the equitable owners of which are Terry D. Feldmann and Feldmann Holding Corporation (collectively, "Feldmann") and the tenant of which is Richfield Motors, Inc., DBA Richfield Mitsubishi ("Mitsubishi") ("Feldmann/Mitsubishi Property"). WHEREAS, HRA is contractually obligated to squire the Subject Property pursuant to a contract for private redevelopment between the HRA and CSM Corporation ("CSM") to enable redevelopmemt of the Subject Property as Phase II of-GSM's Shops at Lyndale Project; WHEREAS, attached hereto as Exhibit B is an excerpt from a letter dated May 3, 1994 to Murray Kornberg of CSM from RE/SPEC, Inc. which describes the possibility that the Feldmann/Mitsubishi Property may have been affected by a release of tetrachlorethene from a dry cleaning facility upgradient from the Feldmann/Mitsubishi Property. Upon information and belief, tetrachlorethene is a hazardous substance. Exhibit B also indicates that a portion of the Feldmann/Mitsubishi Property has not been investigated for possible contamination from the dry cleaner or other sources and that the Minnesota Pollution Control Agency's assurances of non-association were applicable only to Feldmann Holding Corporation, Vivian Swanson and Richfield Mitsubishi. Thus., it is incumbent upon a buyer of the Feldmann/Mitsubishi Property to independently investigate the Feldmann/Mitsubishi Property to confirm that it is free of contamination which could result in liability to remediate any condition which may exist on the Feldmann/Mitsubishi Property; WHEREAS, attached hereto as Exhibit C is a letter dated April 28, 1995 to Murray Kornberg of GSM, from Kevin Pierson, Senior Project Manager for RElSPEC, Inc., indicating that RE/SPEC, Inc. has discovered evidence of contamination on the property located at 908 to 918 West 77~ Street ("Don's Appliance Property"), the property located immediately .northerly of and across West 77-1/2 Street from the Feldmann/Mitsubishi Property. At this time it appears most likely that the source of the newly discovered contamination on the Don's Appliance Property was the activities of Terry Feldman Imports, which occupied the Don's Appliance Property from approximately 1985 through 1991; RJL88423 RC125-95 2 Feldmann/Mitsubishi Property Only WHEREAS, attached hereto as Exhibit D is City of Richfield Permit No. 12461 authorizing the installation of a used oil storage tank on the Don's Appliance Property at the request of "Terry Feldman's", the owner; WHEREAS, Terry Feldman's Imports was also apparently a previous occupant of the Feldmann/Mitsubishi Property. By its. terms, the no-action letter previously obtained by Feldman and Richfield Mitsubishi with respect to the Feldmann/Mitsubishi Property is not sufficiently broad to protect the HRA (if it purchases the Feldmann/Mitsubishi Property} or CSM (if it purchases the property from HRA) and the no-action letter does not embrace all of the Feldmann/Mitsubishi Property. The protection afforded by the no-action letter previously obtained by Feldman is only as good as the information which was available to the MPCA at the time MPCA provided the no-action letter. The information available to MPCA at the time of the no-action letter was inadequate in that it did not include the information described in Exhibit C and it did not include tests for that part of the Feldmann/Mitsubishi Property lying south of the building now located on the Feldmann/Mitsubishi Property. The prevailing direction of ground water flow is southerly. to south easterly in the immediate area of the Feldmann/Mitsubishi Property so that any contaminants, pollutants or hazardous substances which may have been released from within the building now located on the Feldmann/Mitsubishi Property and which contaminated the groundwater, if any, would likely have flowed to the portion of the Feldmann/Mitsubishi Property which has not previously been tested. WHEREAS, the provisions of Minn. Stat. § 115.B.03, Subd. 5. provide limited protection to a condemnor of polluted property and the condemnor's purchasers. However, because of the limited scope of the protection provided by that provision,- CSM and HRA staff recommend that the HRA investigate the extent of possible contamination of the Feldmann/Mitsubishi Property prior to the transfer of title and possession of the Feldmann/Mitsubishi Property to HRA, for the following reasons, among others: (a) even if HRA and CSM, as redeveloper of the Feldmann/Mitsubishi Property, are held to be immune from liability for cleanup of the Feldmann/Mitsubishi Property as a "responsible person", it is not clear from section 115B.03, Subd. 5 that CSM's tenants, mortgagees, or purchasers will enjoy the same protection from liability; (b) because HRA or CSM may still be obliged to cleanup contamination found on the Feldmann/Mitsubishi Property, even though they are not found to be a responsible person under Section 115B.03, Subd. 5 (e.g., in order to satisfy a tenant, RJL88423 RC125-95 3 Feldmann/Mitsubishi Property Only mortgagee or purchaser), HRA and CSM wish to know the extent of the contaminating conditions so as to know the cost of cleanup to which they may be exposed in the event they accept title to the Feldmann/Mitsubishi Property. (c) The objective of HRA and CSM is to construct new structures on the Feldmann/Mitsubishi Property and the objective of CSM is to rent, mortgage, and, potentially, sell the Feldmann/Mitsubishi Property, including those improvements. It is the experience of CSM and HRA staff and counsel that tenants, buyers and lenders will be much less willing to occupy, loan funds to or purchase a property which has a history of contamination, especially if the contamination has never been remediated, without the protection provided in Minn. Stat Section 1158.03. The greater the amount of contamination, the greater the risk of lack of market acceptance which CSM and HRA will incur. It is important for CSM and HRA to know the extent of this risk before either of them accepts title to the Feldmann/Mitsubishi Property. HRA's attorneys have requested the right to transfer title and possession of the Subject Property to HRA effective as of May 31, 1995. (d) Pursuant to Minn. Stat. § 117.195 it is possible for the HRA to discontinue the condemnation proceeding with respect to a parcel of property prior to the transfer of title and possession of that property to the HRA. It is essential for HRA and CSM to know the extent of contamination on the Feldmann/Mitsubishi Property prior to the passage of title to the HRA in order to permit HRA to discontinue the condemnation proceeding with respect to the Feldmann/Mitsubishi Property if the extent of contamination on the Feldmann/Mitsubishi Property is such that HRA or CSM would wish to avoid accepting title and possession of the property. WHEREAS, in a given case, it is possible that the extent of contamination of a property may be so great as to pose a threat to health and safety. In such a case, it would be undesirable for HRA to become obligated to accept the transfer of title and possession of the property before knowing the full extent of the contamination (i.e., whether levels of contaminants are present which would cause a threat to health and safety). WHEREAS, it is impractical for HRA to rely solely upon the provisions of Section 115B.03, subd. 5 in protecting itself .from liability because CSM may refuse to accept title from HRA if, by undertaking various construction activities on the Feldmann/Mitsubishi Property, HRA or CSM could arguably become so associated with the contaminating conditions that HRA or CSM could RJI,88423 RC125-95 4 Feldmann/Mitsubishi Property Only lose their protection from liability under Section 115B.03, Subd. 5. WHEREAS, HRA's attorneys have requested that. the owner of the Feldmann/Mitsubishi Property permit the HRA and its consultants. to enter the Feldmann/Mitsubishi Property for the purpose of performing soil borings and related sampling and testing to attempt to determine whether soil located upon the Feldmann/Mitsubishi Property or groundwater beneath the property may have been contaminated by a release from within or outside the Feldmann/Mitsubishi Property; WHEREAS, the owner of the Feldmann/Mitsubishi Property has so far refused to grant the HRA and its consultants permission to undertake such activities upon the Subject Property; WHEREAS, the HRA may incur liability under state or federal law for conditions of contamination present on the Feldmann/ Mitsubishi Property if the HRA does not attempt in a reasonably prudent manner to investigate conditions present on the Feldmann/ Mitsubishi Property prior to acquisition of the Feldmann/Mitsubishi Property; WHEREAS, the HRA desires to be as well informed as possible concerning the extent of any possible contamination present on the Feldmann/Mitsubishi Property prior to concluding negotiations concerning the possible purchase price-for the Feldmann/Mitsubishi Property and prior to commencement of eminent domain proceedings in the event that the HRA is unable to obtain a voluntary acquisition of the Feldmann/Mitsubishi Property. NOW, THEREFORE, be it resolved by the Board of Commissioners of the HRA in and for the City of Richfield as follows: A. The Board of Commissioners hereby finds that acquisition of the Feldmann/Mitsubishi Property in eminent domain proceedings has previously been determined by this Board to be required and hereby affirms that determination. B. The HRA has reason to believe that a hazardous substance, pollutant, or contaminant is present on the Feldmann/Mitsubishi Property or the release of a hazardous substance, pollutant or contaminant may have occurred or is likely to occur on the Feldmann/Mitsubishi Property. C. Entry upon the Feldmann/Mitsubishi Property for environmental testing is rationally related to health, safety, or RJL88423 RC125-95 5 Feldmann/Miteubiahi Property Only welfare concerns of the HRA in connection with possible eminent domain proceedings. D. The Owner of the Feldmann/Mitsubishi Property has refused to consent to the entry of the HRA and its consultants upon the property for environmental testing. The HRA's Attorney is directed to apply for a court order authorizing the entry and the removal of any sample or portion from the FeldmannlMitsubishi Property, giving notice of the court hearing concerning the HRA's request for the order to the Owner of the FeldmannlMitsubishi Property or its attorney. The notice shall also give the Owner the option of requesting an equal amount of any sample or portion taken from the Feldmann/Mitsubishi Property and a copy of any data obtained or report issued. E. The notice to the owner shall also state that the HRA's Executive Director and the HRA Attorney are directed to require that HRA employees or consultants who enter the Feldmann/Mitsubishi Property are to do no unnecessary damage to the Feldmann/Mitsubishi Property and that they shall restore the Feldmann/Mitsubishi Property to substantially the same condition in which it was found. If said employees or consultants remove a sample or portion of the Feldmann/Mitsubishi Property for investigation, monitoring, or testing, or if they obtain any data or issue any report, they shall give the Owner of the Feldmann/Mitsubishi Property an equal amount of the sample or portion and a copy of any data or report, if requested by the Owner of the Feldmann/Mitsubishi Property, and they shall permit the Owner of the Feldmann/Mitsubishi Property to perform independent investigation, monitoring, or testing of the sample or gortion. G. Results of testing performed on the Feldmann/Mitsubishi Property shall be included in any environmental assessment worksheet or environmental impact statement which the HRA is required to prepare under Minn. Stat., Ch. 116D. Dated: May 1995. Chair ATTEST: Secretary RJL88423 RC125-95 Feldmann/Mitsubishi Property Only The motion for the adoption of the foregoing Resolution was duly seconded by Commissioner , and upon vote being taken thereon, the following voted in favor thereof: And the following voted against same: Whereupon said Resolution was declared duly passed and adopted. RJL88423 ,, RC125'95 EXHIBIT A Parcels 1 and 14 (Torrens Certificate Nos. 786331 and 802981)(PID Nos. 33-028-24-44-0082 and -0078): Description of Property to be Taken: That part of Lot 1, lying West of the East 10.5 feet thereof, and the East 10.34 feet of Lot 2, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota and The west 10 feet, 6 inches of Lot 10 and all of Lot il, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Also the east 10.5 feet of Lot 1, Block 1, STRAND-BOWEN SECOND ADDITION all in Hennepin County Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield Property Address: Richfield Name 900 and 815, and 818 77-1I2 Street West, Daniel Adelmann, Trustee of the Robert F. Adelmann Trust David Adelmann, Trustee of the Robert F. Adelmann Trust TOP LINE CYCLE,. INC., a Minnesota corporation Nature of Interest Fee Owner Fee Owner Tenant Mark Turnberq, d/b/a Weekend Tenant Freedom Lawn & Garden Equipment, a/k/a Weekend Freedom Sports & Garden Equipment Fee owners named in Parcel 2 of .this Exhibit A Fee owners and mortgagees named in Parcel 13 of this Exhibit A City of Richfield County of Hennepin CAH89209 RC125-95 Party Wall Agreement Document No. 601923 Party Wall Agreement Document No. 555892 Special assessments; utility easement Real estate .taxes A-1 Exhibit A (cont'd) Parcel 2 (Torrens Certificate No. 661709 )(PiD No. 33-028-24-44- 0083 Description of Property to be Taken: Lot 3 and that part of Lot 2 lying west of the East 10.34 feet thereof, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurte- nant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield Property Address: 902 77-1/2 Street West, Richfield Name Kevin Louis Deborah Louis Fee owners named in Parcel 1 of this Exhibit A Fee owners and mortgagee named in Parcel 3 of this Exhibit A Ridge Door Sales & Service, Inc., a Minnesota Corporation City of Richfield Hennepin County Nature of Interest Contract for Deed vendee Contract for Deed vendee Party Wall Agreement Document No. 601923 Party Wall Agreement Document No. 609801 Tenant Special assessments Real estate taxes C11H87209 RC125-95 A-2 Exhibit A (cont'd) Parcel 3 (Torrens Certificate No. 675728)(PID No. 33-028-24-44- 0084 Description of Property to be Taken: Lots 4 and 5, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 904 77-1/2 Street West, Richfield Name Nature of Interest Wayne A. Bebeau Fee owner Richard J. Henchal Fee owner Sandra A. Henchal Inchoate interest Brooklyn Park Bank, acquired by and now known as Marquette Bank Brooklyn Park Fee owners named in Parcel 2 of this Exhibit A CSM Investors, Inc., a Minnesota corporation Marilyn L. Bebeau Timothy Hennessey, d/b/a Sunset Auto Detail City of Richfield Hennepin County Mortgagee Party Wall Agreement Document No. 609801 Party Wall Agreement Document No. 609802 Possible claimant Contract for deed vendee Special assessments Real estate taxes CAH87209 RC125-95 A- 3 Exhibit A (cont'd) Parcels 7 and 8 (Torrens Certificate Nos. 393 No_s_._33-028-24-44-0088 and -0089): Description of Property to be Taken: and 52662: Lots 1, 2, 3 and 4, Block 2, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota and Lots 5 to 11, inclusive, Block 2, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minneso- ta Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurte- nant easements, EXCEPTING that part of Colfax Avenue South as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies southerly of the center line of West 77 1/2 Street as dedicated in said plat, AND ALSO EXCEPTING-that part of the southerly half of West 77 1/2 Street as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies westerly of the northerly extension of the west line of Lot 5, Block 2, in said plat. SUBJECT, however, to the rights of the State of Minnesota in certain access restrictions created by Final Certificates filed June 19, 1963 as Document No. 733619; SUBJECT ALSO to an easement in favor of Northern States Power Company dated November 26, 1965, filed November 29, 1965 as Document No. 829621; SUBJECT ALSO to existing street and utility easements in favor of the City of Richfield. Property Address: 901 77-1/2 Street West and 920 78th Street West, Richfield Name Nature of Interest Louis D. Hunt Fee owner (Cert. 393104) June J. Hunt Inchoate interest (Cert. 393104) Vivian L. Swanson Fee owner (Cert. 526623) Terry D. Feldmann Contract for deed vendee (Cert. 393104) Spouse of Terry D. Feldmann, Inchoate interest if any (Cert. 393104) Feldmann Holding Corporation, Contract for deed vendee a Minnesota corporation (Cert. 526623) CAH87209 RC125-95 A- 4 Exhibit A (cont'd) Name Nature of Interest Community Bank, N.A., merged Mortgagee (Cert. 526623) with Bank Midwest, Inc., National Association, which. then merged with Truman National Bank and Trust Company and which is now known as Bank Midwest, National Association Richfield Motors, Inc., a Tenant Minnesota corporation, d/b/a Richfield Mitsubishi State of Minnesota Snow fence easement City of Richfield Special assessments Hennepin County Real estate taxes CAH87209 RC125-95 A- 5 Exhibit A (cont'd) Parcels 9 and 10 (Torrens rtificate Nc t2 and 733908)(P -0074 Description of Property to be Taken :_ Lots 1 and 2, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 3 and 4, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to an easement in favor of U.S. West Communications, Inc. dated December 16, 1992, filed December 28, 1992 as Document No. 2329224; SUBJECT ALSO to existing street and utility easements in favor of the City of Richfield Property Address: 800 and 804 77-1/2 Street West, Richfield Name Nature of Interest Anthony B. Doherty Fee owner Spouse of Anthony B. Doherty, if any Fee owners and mortgagees named in Parcel 11 of this Exhibit A Doherty Furniture & Carpet Co., a Minnesota corporation d/b/a Doherty's Home Furnishings City of Richfield Hennepin County CAH87209 RC125-95 Inchoate interest Party Wall Agreements Document Nos. 500398 and 500400 Tenant Special assessments Real estate taxes A-6 Exhibit A (cont'dj Parcels it and 12 (Torrens Certificate Nos. 542041 and 685006)( ID Nos. 33-028-24-44-0075 and -00761: Description of Property to be Taken: Lots 5 and 6, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 7 and 8, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurte- nant easements. SUBJECT, however, to existing, street and utility easements in favor of the City of Richfield. Property Address: 808 and 812 77-1/2 Street West, Richfield Name Nature of Interest Adelmann and Schulz, a part- Fee owner nership consisting of Robert F. Adelmann and Wilfred O. Schulz First Western Bank - Richfield Mortgagee Summit State Bank of Rich- Mortgagee field, which has been acquired by and is now known as Firstar Bank of Minnesota, National Association First Western Bank, acquired by and now known as Firstar Bank of Minnesota, National Association Mortgagee and financing state- ment creditor Fee owners named in Parcels 9 and 10 of this Exhibit A Fee owners named in Parcel 13 of this Exhibit A CAH87209 RC125-95 Party Wall Agreement Document Nos. 500398 and 500- 400 Party Wall Agreement Document No. 711441 A-7 Exhibit A (cont'd) Name Nature of Interest Boran General Trading, Inc., a Tenant Minnesota corporation, d/b/a Boran's General Trading and Boran's General Trading Co., a/k1a Boran's General Trading Company, Inc. Curtis Rosequist dlbla Curtis Tenant TV, a/k/a Curtis TV Sales & Service Thomas Carlson, d/b/a C and S Tenant Service Steven H. Krohn, d/b/a Quality Tenant Computer Service John M. Lebahn, d/b/a Quality Tenant Computer Service Doherty Furniture & Carpet Tenant Co., a Minnesota corporation, d/b/a Doherty's Home Furnish- ings City of Richfield Special assessments Hennepin County Real estate taxes CA$87209 RC125-95 pl- S Exhibit A (cont•d) Parcel 1 0077): Certificate No. 7 10. 33-028-24-44- Description of Property to be Taken:_ Lot 10, except the west 10 feet 6 inches thereof and all of Lot 9, Block 1, STRAND-BOWEN ADDITION. TO RICHFIELD, Hennepin County, Minnesota. Together with the easements appurtenant for party wall purposes over the west 1 foot of Lot 8, Block 1 as shown in Document No. 556318 and over the East 6 inches of the west 10.5 feet of Lot 10, as shown in Document No. 555892, all as referred to in deed Document No. 718808, Files of Registrar of Titles. Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements.. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 816 77-1/2 Street West, Richfield Name Nature of Interest Robert F. Adelmann Fee owner Lorraine Adelmann Fee owner Daniel Adelmann, as Trustee of the Robert F. Adelmann Trust David Adelmann, as Trustee of the Robert F. Adelmann Trust Fee owners and mortgagees named in Parcel 12 of this Exhibit A Fee owners named in Parcel 14 of this. Exhibit A Business Furniture Brokers, Tenant Inc., a Minnesota corporation, d/b/a The Business Furniture• Store, Inc. • City of Richfield Hennepin County CA887209 AC125-95 Fee owner Fee owner Party Wall Agreement Document No. 711441 Party Wall Agreement Document No. 555892 Special assessments Real estate taxes A-9 Exhibit A (cont'd) Parcels 15, 16, 17, 18 and 19 (Torrens Certificate Nos. 271328, 386122, 388592, 533220, and 533221)(PID Nos. 33-028-24-44-0081, - 0080, -0099, -0100, and -0101): Lots 8, 9, 10 and 11, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 4, 5, 6 and 7 and the west 1 foot of Lot 3, Block 2, STR.AND- BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 1 and 2; and Lot 3 except the west 1 foot thereof, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and That part of the vacated Aldrich Avenue South adjoining Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD lying between the Westerly extensions across it of the South line of West 77-1/2 Street and the North line of Market Drive as extended to the West line of STRAND'S SECOND ADDITION TO RICHFIELD, according to the plat thereof on file or of record in the office of the Register of Deeds, Hennepin County, Minnesota and Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to the rights of the State of Minnesota in certain access restrictions created by Final Certificates filed June 19, 1963 as Document No. 733619; SUBJECT ALSO to existing street and utility easements in favor of the City of Richfield Property Addresses: 819, 811, 809, 803, 801, 725, 723, and 719 77-1/2 Street West Name Robert F. Adelmann Lorraine Adelmann Nature of Interest Fee owner (Parcels 15-18); contract for deed vendee (Parcel 19) Inchoate interest C?,H87209 AC125-95 A-10 Exhibit A (cont'd) Name Jens H. Andersen Ruth H. Andersen First Sank National Association Fee owner named in Parcel 20 of this Exhibit A Richfield Plumbing Co., a Minnesota corporation Great Northern I., Inc., d/bIa The Drapery Place Hagen Office Equipment, Inc., dlb/a Hagen Micro Age Richard C. Ott, d/b/a R P M Automotive Paul J. Krinke, d/b/a R P M Automotive Lael Letecki, d/b/a Classic Car Care Richfield Motors, Inc., a Minnesota corporation, d/b/a Richfield Mitsubishi TOP LINE CYCLE, INC., a Minnesota corporation State of Minnesota City of Richfield Hennepin County CAH87209 RC125-95 Nature of Interest Fee owner (Parcel 19) Fee owner (Parcel 19) Mortgagee (Parcel 17) Party Wall Agreement Document No. 556547 Tenant Tenant Tenant Tenant Tenant Subtenant Tenant Possible leasehold Snow fence easement (Parcels 15, 16 and 17) Special assessments Real estate taxes A-11 Exhibit A (cont'd) Parcel 20 (Torrens Certificate No. 781024)(PID No. 33-028-24-44- 0097): . Description of Property to be Taken: Lot 4, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: Name 715 77-1/2 Street West, Richfield F & D Properties, a partnership consisting of Dayle R. Erickson and Fred C. Talbot Fee owners and mortgagee named in Parcel 18 of this Exhibit A Fee owners named in Parcel 21 of this Exhibit A Borofka Huth Bedrooms, Inc., d/b/a PM Sleep Center City of Richfield. Hennepin County Nature of Interest Fee owner Party Wall Agreement Document No. 556547 Party Wall Agreement Document No. 444542 Tenant Special assessments Real estate taxes CAH87209 RC125-95 A-12 Exhibit A (cont'd) Parcel 21 (Torrens Certificate Nos. 225502 and 228498)(PID No. 33-028-24-44-0096): Description of Property to be Taken: Lots 2 and 3, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, .vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 705 77-1/2 Street West, Richfield Name Nature of Interest Robert F. Adelmann Lorraine Adelmann Fee owners named in Parcel 22 of this Exhibit A Fee owner named in Parcel 20 of this Exhibit A Twin City Tire, Incorporated Naegele Outdoor Advertising, Inc. Fee owner Inchoate interest Party Wall Agreement Document No. 475734 Party Wall Agreement Document No. 444542 Tenant Sign lease Borofka Huth Bedrooms, Inc. City of Richfield Hennepin County CJ,H87209 RC125-95 Sign lease Special assessments Real estate taxes A-13 Exhibit A (cont'd) Parcel 0095): Certificate No. 3412681(PID No. 33-028-24-44- Description of Property to be Taken: Lot 1, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 701 77-1/2 Street West, Richfield Name Nature of Interest Lula H. Kerssen Spouse of Lula H. Kerssen, if any Fee owners named in Parcel 21 of this Exhibit A Greg Njoes d/b/a Richfield Flowers City of Richfield Hennepin County Fee owner Inchoate interest Party Wall Agreement Document No. 475734 Tenant Special assessments Real estate taxes CAH87209 RC125-95 A-14 Exhibit A (cont'd) 24 and 25 (Torrens Certificate Nos. 691007, 69100 PID Nos. 33-028-24-44-0092, -0093, and -0094): Description of Property to be Taken: Lots 10 and 11, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lot 9, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lot 8, except the easterly 6 inches thereof, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 718 and 712 77-1/2 Street West, Richfield Name Nature of Interest William T. Horner Fee owner Janis M. Horner Fee owner First Security State Bank Mortgagee and assignee of leases and rents Fee owners named in Parcel 26 Party Wall Agreements of this Exhibit A Document Nos. 433420 and 483425 Genuine Parts Company, a Tenant Georgia corporation d/b/a NAPA Auto Parts PREFERRED MECHANICAL SERVICES Tenant CORPORATION, d/b/a Preferred Heating and Air Conditioning Company City of Richfield Special assessments Hennepin County C71H87209 RC125-95 Real estate taxes A-15 Exhibit A (cont'd) Parcel 0091): cate No. 245518 Description of Property to be Taken: -..~..-~a-Qa_ Lots 6, 7 and the easterly 6 inches of Lot 8, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 708 77-1/2 Street West, Richfield Name Nature of Interest Keith C. James Fee owner Mary Anne James Fee owners and mortgagee named in Parcels 24 and 25 of this Exhibit A THE AMMONIA HOUSE, INC., a Minnesota corporation City of Richfield Hennepin County Fee owner Party Wall Agreement Document Nos. 433420 and 483425 Tenant Special assessments Real estate taxes CAH87209 RC125-95 A-16 Exhibit A (cont~d) Parcel A (No PID No.)(Affects Torrens Certificate No. 759625): Description of Property to be Taken: That part of West 77th Street as dedicated in the plat of STRAND- BOWEN SECOND ADDITION, which lies westerly of the northerly extension of the west line of the easterly 4.5 feet. of Lot 8, Block 1, of said plat. Said property is adjacent to and abutting the following described land: All of Lot 8, except the Easterly 4.5 feet thereof; Lots 9 to 11, inclusive, Block 1, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota SUBJECT, however, to existing street and utility easements in favor of .the City of Richfield. Property Address: None. Adjacent to 918-914 77-1/2 Street West, Richfield Name Nature of Interest CSM Investors, Inc., a Fee owner Minnesota corporation Adelmann - Schulz Partnership, Possible claimant a Minnesota general partnership City of Richfield Street easement Hennepin County Real estate taxes CAH87209 RC125-95 A-17 '~~ ~ ~ ~ RSf(MPO)/302-006/04.94114 .,:- _ JL~..i.i ~ tnic. S RESEARCU SPEt.UUSI'S Kapul ~~~~, Souch Dakota • AlhuqueryLe \ta• tiir:,;v P:rtrc. Squth I>aknta. • Minneapoi~s, ~tiit,neoc May 3, 1994 Mr. Marra Kornber CSM Corporation F 2561 Territorial Road St. Paul, Mist SS 114-1.50(1 RE: Regulatory File Reviews for Richfield, Minnesota Redevelopment Project RFJSPEC Report No. 511 Dear Mr. Kornberg; The purpose of this report is to summarize RElSPEC, Inc.'s (RE/SPEC review of select Minnesota Pollution Control Agency {ti1PCA) and Hennepin County Environmental Management Department (HC} Files re arding sites at and in the vicinity of the Richfield redevelopment project (the SITE). The SITE is an area bounded by Lyndale Avenue to the east, Market Drive to the south, Emerson Avenue to the west and West 77th Street to the north. Tha SITE does not include the Conoco service station located at the southwest comer of the Lyndale Avenue/West 77th Street intersection, Environmental Data Resources, Inc. (EDR) initially searched various state and federal environmental regulatory data bases ca identify listed sites of known or potential environmental concern at or in the vicinity of the SITE (EDR report dated March 22, 1994). The EDR data base search was performed according to the requirements of an ASTM standard Phase I Environmental Site Assessment (ASTivI Practice E 1527-93, sec. 7.2.1.1).. Based primarily on their proximity to the SITE, available public information on saveral EDR- identified MPCA and HC sites was reviewed for additional information by RE/SPEC. Select portions of referenced reports, key figun;s and key correspondence from these riles are included as attachments to this report. MPCA Leaking Underground Storage Tank Sites Rich~elrt Mitsubishi, 920 West 78th Street, Richfield (on-SITE) S L lf eaksite #SS12, discovered ~i92, closed 6/93 ' One. 550-gallon used oil underground storage tank (UST) and two, SSO-gallon new motor oil USTs were reportedly located inside [he nonhern ponion of the existing Richfield hitsubishi building. A UST- release was reported to the MPCA in July, 1992, when Applied Engineering found indications of contamination in hand auger barings placed near the USTs. Additional soil barings advanced by Twin City Testing Corporation (1'CT) in late 19y3 sufficiently demonstrated to the MPCA than the petroleum release from the USTs did not signit"icantly impact the environment. Htzwever, groundwater samples collected in two soil borings found tevachl~roerhene to be present in concentrations of 150 and 210 parts per billion (ppbl, abo~~e the Minnesota Depanment of Health's (MDH) Recommended ~~llowabie Limit (RAL} of ' PPr Tetrachloroethene is a solvent commonly associated with dry cleaning or vapor degreac_irrg • Based on a "surficial inquiry", TCT concluded that the source of the tetraehloroethere appeared to be from an off-sico source. G f'uu ltrC !)fhc. S:uu a+t!, aftl~!i I1Cl• tlinnc.,,ta 55! L-ti'.S • {613) ~!?6•~?"~ • f;1~ iG13) ~?Sh~~?-(,! KS I(MPO)/302-006/04-941 l4 The MPCA issued a elosurt; Irtttr for the pCtroleun~ component of the LIST release on June I, 1993. However, due to the presence of non-petroleum contaminants, the site was referred to the MPCA's Site Response Section for continued administration. In November, 1993, Richfield Tvlitsubishi was inviecd to partioipstc in the Site RCSponse Section's- Voluntary Investigation and Cleanup program (VIC). The VIC program is designed to provide technical oversight by the MPCA during voluntarily investigations and cleanups of non-petroleum contamination, usually with the goal of achieving some limit of liability from the state. VIC project mansger Mr. Jonathan Smith was contacted by telephone on April 28, 1994. Mr_ Smith stated that Richfield hiir„cubishi had entered the VIC program. According to Mr. Smith, Richfield Mitsubishi had installed four groundwater monitoring wells on their site during the petroleum investigation releasz (this information was not present in the file during our review). The monitoring wells reportedly demonstrated that groundwater flow beneath the site was generally southerly, and that tetrachloroethene concentrations were highest in wells placed near the north property boundary. Low levels (below RALs) of trichloroethcne and cis I,2 dichloroctltene were also detected in groundwater samples. Two soil borings had. also been placed near a dry cleaning facility located within one block north of the Mitsubishi facility. Mr. Smith stated that tetrachloroethene was encountered in the two sail borings placed near the dry cleaner, and that the dry cleaner appeared to be a "hot spot" (a point source of contamination}. 4n April 26, 15194, the MPCA issued Richfield Mitsubishi a limited off-site source determination letter, stating, in part, that''...the MPCA staff has concluded that the site is not the source of the Identified Releace (the tetrachlorocthene;, trichloroethcne and cis 1,2 dichloroethene detected in groundwater] and the contamination originates from an off-site source." The letter continues "The MPCA Commissioner is hereby issuing a determination to take no further action under I~1tnn Stat. l 158.01 to 1158.1$ against [he Companies [Richfield Mitsubishi, Feldman Holding Corporation and Vivian L. Swanson} with respect ro the Identified Release." The letter includes the limitation that "It should be noted that only a portion of the site was investigated, specifically the upgradient area. Because the downgradient portion of the site, particularly downgradient of chc Richfield Mitsubishi Building, has not been investigated, the presence, ahsence andlc,r source of any on-site release other than the Identified Release has not been determined." Mr. Smith concluded by stating that the dry ~ani.ng bt_siness will soon be requested to investigate their property as a potential source of the observed solvent contamination. Toral Petroleum, 7645 Lpndale Avenue South, Richfreld ~1/8 mile northeast, UST Leaksite #6123, discovered 3/93, active file A UST release was reported in March, 1993. at the Total Petroleum service station located on the northeast corner of the Lyndale Avenue/West 77th Street intersection. The UST release was discovered when Braun Intertec advanced soil borings at the site as pan of a pre-aquisition assessment for the City of Richfield. Total Petroleum then contracted EnecoTech Midwest, Inc., (EnecoTech) to complete a Remedial Investigation (RI) of the site. The EnecoTech Ri included the placement of four groundwater monitoring wells, two of which were placed tt~ the south of the service station, across West 77th Street. ' EnecoTech summarized the findings of their RI in a March 1, 1993 letter to the MPCA. EnecoTech found that hydrocarbon impacts to soil were limited to on-site soils in the vicinity of the USTs and to ot'f-site soils immediately above the water table at 36 to 3$ feet below grade. Groundwater was determined to flow south-southe:~st~erly bcrcath the service station. Two rounds of groundwater samp;e analy's'is (9/22/93 and 1 i/24/93) demonstrated a maximum henzene concentration of 370 parts per hiilion (ppb) in MVV-l, located centrally on the Total Petroleum site (the current RAL for ben2ene is lU ppb). No free product was reported in any of the monitoring wells. 2 04/28/95 11:16 FAZ 612 646 2404 CSY CORPORATION X002/005 From REiSP6C Inc. ~L_:/ Ivir. Murray ICornbcrg CSM Investors, Ina. 2561 Territorial Road St. Paul, MN 55114 Subject: Phase ii FSA Preliminary Results Richfield R,edeveloptucat RE/SPEC X302^32 Dear Mr_ Kornberg: ~~ EXHIBIT Hapld riiy, sw,d, Axku~ • Altruque yyue, New Mexico Pierne, South pakoc+ . Miru~eapoiis, Minr~aora Apri128,-1995 As requested in our telephone conversation on April 27, 1995, REISPF,,C has prepared the following preluninary summary of the additional assessment completed at the referenced site. 'The focus of the additional assessment was to further assess the extent of tetraehlotoethene (PCE~ impacts previously detected at the west end of the strip mall from 90$ to 918 West 77 1/2 Street in Richfield, IvtN. The additional assessment included collection of soil and groundwater samples for analysis of PCE from 24 Geoprobe locations on the exterior of the building, and two one-foot-deep borings located adjacent to flaor drains inside the buildings. The sampling locations are depicted on the attached Figures I and 2. A sample of scdlraeat ?irotn within the MCS floor drain and a water sample from the former Don's Appliance sewer-lln~e oillwattr separator were also submitted for PCE analysis. The Geoprobe assessment Was conducted from A.pri13-S, 1995. On April 7, 1995, an underground storaga tank (UST) .was removed from the north aide of the Dona Appliance Store. One eat`cavation~ottom sample at seven and oac half feet below grade and two one-foot-below-grade sidewall samples arcre collected and submitted for PCB analysis. A sample of the sludge from within the UST was also submitted for PCB analysis, even though there wan no indication of a release from the UST. The results of the soil sample analyses are posted on Figure 1, with the sample depth and corresponding PCE concentration in pazts-per-billion (ppb) being posted adjacent to the sampling point. The posted values are those obtained using the gas chromatograph in the Geoprobe's mobile laboratory. The vetoes contained in parentheses are the results of confirmation samples that ware submitted to a Minnesota certified Iabaratory. For Geoprobe sampling point GP-11, the Geoprobc analytical results should be disregarded, since there was a reporting anomaly associated with the Geogrobe analytical results. PF~7hE No. 612 X86 9763 I Apr. 28 1955 9:'S6Fafh P82 6 Pinr Ztee Drive, Suite 260, Ardrn Htils, Minnesvt3 55112-3745 • (6t2)186~9'f'/1 • PAX (6)3) 486~976~ U4/LO/bJ 11.10 CAA O1L o9v ~yvr Frain i RE/SPEC Inc. Richfield Assessment Results April 28, 1995 Page ~ PFiQ~E No. :612 486 9761 Apr. 28 1995 9:59AM P03 The greatest soil impacts were det;cacd in the 0-2 foot depth interval of GP-15 and GP-201ocated 0o the north of the former dry cleaners, PCB concentrations ranging from 14,000 ppb to $5,000 ppb are indicative of a surfacx release iu this area. The next most significant detections were pCE concentrations of 1,100 ppb in DP-16, located to the north of Aon's Appliance, and 630 ppb that was collected adjacent to the floor drain in Don's Appliancx. 'lhe satnpie collected adjacent tv the floor drain inside Don's Appliancxi does not appear to be attributable to an off-site source. Grout water analytical results are shown on Figure 2. Past assessment in the area fndicated that PCl/ had apparently been released from the sewer line near the intersection of Went 77th Street and Colfax Avenue. The results of the most recent assessment appear to concur with the past findings. There appears w be a slgt~ificant PCB groundwater plume migrating southwest from the intersection of West 77th Street and Colfax Avenue. However, these does appear to be an overlapping plume, of less magnitude. that appears to originate from the portly side of the former dry cleaners, migrating southwest. The results of the sludge sample from within the U5T apd the water Sample from the oiUwater separator associated with Don's Appliance aze also shown on Figure 2. The sludge sample oonrained X0,000 ppb of PCE, indicating that former operations that used the UST (thought to be Feldmarm Imports) also used PCB. Water from within the oil/water separator contained 7.1 ppb of PCE that is in excess of the 7.0 ppb groundwater cleanup criteria. A detailed final report of the assessment results in being prepared and will be available soon. If you have any questions, I may be contacted at 486-9771. Sincerely. Rl//SPEC Inc. 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(~ "'p. a 2 C ~:.~.~ D ~ ; H to _- a ~ -?~ ~ m ~ 1 m m° :.. p . : O ~ > ~ ~ ~ ~ ~ 'c ~ r ~ O a r ~ ~ ~ A . •' ss m '~ ~ ~ ~Y m fv r n m m e m ..j ~ ~} Yip„ . m _ ~ a~ • f k ~ ~ ~ : ~ ~ ~ oar _~~ . ~ . °D -~ n c ,+ Z Z N A Pf K w ~ O ~ ~ ~ . - Q Q. f... 0 0 °o .ice EXHIBIT ' ~ D i All Properties May 15, 1995 Commissioner resolution and moved its adoption: introduced the following Housing and Redevelopment Authority In and for the City of Richfield Resolution No. Resolution Authorizing Entry for Environmental Testing WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield ("HRA") is a public body corporate and. politic under the laws of the State of Minnesota, as amended, and is authorized by Minn. Stat. § 469.012 to acquire real estate by exercising the power of eminent domain under and pursuant to Minn. Stat., Ch. 117; WHEREAS, pursuant to Minn. Stat. § 117.041, Subd. 2., ". . _, a political subdivision by res to ution may enter property for purposes of investigation, monitoring, testing, surveying, boring, or other similar activities necessary or appropriate to identify the existence and extent of a release or threat of release of a hazardous substance, pollutant, or contaminant if: (1) The political subdivision has reason to believe the acquisition of the property may be required pursuant to an eminent domain proceeding; (2) The political subdivision has reason to believe that a hazardous substance, pollutant, or contaminant is present on the property or the release of a hazardous substance, pollutant, or contaminant may have occurred or is likely to occur on the property; and (3) Entry on the property for environmental testing is rationally related to health, safety, or welfare concerns of the political subdivision in connection with eminent domain proceedings." WHEREAS, the HRA has commenced eminent domain proceedings to acquire the real estate described on Exhibit A attached hereto ("Subject Property"); RJL88523 RC125-95 1 All Properties WHEREAS, said eminent domain proceedings (Hennepin Co. Dist. Court File No. CD2364) were commenced on behalf of the HRA pursuent to HRA Board of Commissioners Resolution No. 541, dated February 28, 1995 to implement the provisions of the HRA's Interstate- Lyndale-Nicollet Redevelopment Plan; WHEREAS, included within the Subject Property as Parcels 7 and 8 is certain real estate located at 901 West 77-1/2 Street and 920 West 78th Street, the equitable owners of which are Terry D. Feldmann and Feldmann Holding Corporation (collectively, "Feldmann") and the tenant of which is Richfield Motors, Inc., DBA Richfield Mitsubishi ("Mitsubishi") ("Feldman/Mitsubishi Property") WHEREAS, HRA is contractually obligated to aquire the Subject Property pursuant to a contract for private redevelopment between the HRA and CSM Corporation ("CSM") to enable redevelopmemt of the Subject Property as Phase II of CSM's Shops at Lyndale Project; WHEREAS, attached hereto as Exhibit B is an excerpt from a letter dated May 3, 1994 to Murray Kornberg of CSM from RE/SPEC, Inc. which describes the possibility that the Feldmann/Mitsubishi Property may have been affected by a release of tetrachlorethene from a dry cleaning facility upgradient FROM the Feldmann/Mitsubishi Property. Upon information and belief, tetrachlorethene is a hazardous substance. Exhibit B also indicates that a portion of the Feldmann/Mitsubishi Property has not been investigated for possible contamination •from the dry cleaner or other sources and that the Minnesota Pollution Control Agency's assurances of non-association were applicable only to Feldmann Holding Corporation, Vivian Swanson and Richfield Mitsubishi. Thus, it is incumbent upon a buyer of the Subject Property to independently investigate the Subject Property to confirm that it is free of contamination which could result in liability to remediate any condition which may exist on the Subject Property; WHEREAS, attached hereto as Exhibit C is a letter dated April 28, 1995 to Murray Kornberg of CSM, from Kevin Pierson, Senior Project Manager for RE/SPEC, Inc., indicating that RE/SPEC, Inc. has discovered evidence of contamination on the property located at 908 to 918 West 77~ Street ("Don's Appliance Property"), the property located immediately northerly of and across West 77-1/2 Street from the Feldmann/Mitsubishi Property. At this time it appears most likely that the source of the newly discovered contamination on the Don's Appliance Property was the activities of Terry Feldman Imports, which occupied the Don's Appliance Property from approximately 1985 through 1991; RJL88523 RC125-95 2 All Properties WHEREAS, attached hereto as Exhibit D is City of Richfield Permit No. 12.461 authorizing the installation of a used oil storage tank on the Don's Appliance Property at the request of "Terry Feldman's", the .owner; WHEREAS, it is possible that a release on the Don's Appliance Property or the Feldmann/Mitsubishi Property or other source may have migrated to other portions of the Subject Property; WHEREAS, Terry Feldman's Imports .was also apparently a previous occupant of the Subject Property. By its terms, the no- action letter previously obtained by Feldman and Richfield Mitsubishi with respect to the Subject Property is not sufficiently broad to protect the HRA (if it purchases the Subject Property) or CSM (if it purchases the property from HRA) and the no-action letter does not embrace all of the Feldman/Mitsubishi Property. The protection afforded by the no-action letter previously obtained by Feldman is only as good as the information which was available to the MPCA at the time MPCA provided the no-action letter. The information available to MPCA at the time of the no-action letter was inadequate in that it did not include the information described in Exhibit C and it did not include tests for that part of the Subject Property lying south of the building now located on the Subject Property. The prevailing direction of ground water flow is southerly to south easterly in the immediate area of the Subject Property so that any contaminants, pollutants or hazardous substances which may have been released from within the building now located on the Subject Property and which contaminated the groundwater, if any, would likely have flowed to the portion of the Subject Property which has not previously been tested; WHEREAS, the provisions of Minn. Stat. § 115.B.03, Subd. 5. provide limited protection to a condemnor of polluted property and the condemnor's purchasers. However, because of the limited scope of the protection provided by that provision, CSM and HRA staff recommend that the HRA investigate the extent of possible contamination of the Subject Property prior to the transfer of title and possession of the Subject Property to HRA, for the following reasons, among others: (a) even if HRA and CSM, as redeveloper of the Subject Property, are held to be immune from liability for cleanup of the Subject Property as a "responsible person", it is not clear from section 115B.03, Subd. 5 that CSM's tenants, mortgagees, or purchasers will enjoy the same protection from liability; (b) because HRA or CSM may still be obliged to cleanup contamination found on the .Subject Property, even though they RJI,88523 RC125-95 3 All Properties are not found to be a responsible person under Section 1158.03, Subd. 5 (e.g., in order to satisfy a tenant, mortgagee or purchaser), HRA and CSM wish to know the extent of the contaminating conditions so as to know the cost of cleanup to which they may be exposed in the event they accept title to the Subject Property. (c) The objective of HRA and CSM is to construct new structures on the Subject Property and the objective of CSM is to rent, mortgage, and, potentially, sell the Subject Property, including those improvements. It is the experience of CSM and HRA staff and counsel that tenants, buyers and lenders will be much less willing to occupy, loan funds to or purchase a property which has a history of contamination, especially if the contamination has never been remediated, without the protection provided in Minn. Stat Section 1158.03. The greater the amount of contamination, the greater the risk of lack of market acceptance which CSM and HRA will incur. It is important for CSM and HRA to know the extent of this risk before either of them accepts title to the Feldman/Mitsubishi Property. HRA's attorneys have requested the right to transfer title and possession of the Subject Property to HRA effective as of May 31, 1995. (d) Pursuant to Minn. Stat. § 117.195 it is possible for the HRA to discontinue the condemnation proceeding with respect- to a parcel of property prior to the transfer of title and possession of that property to the HRA. It is essential for HRA and CSM to know the extent of contamination on the Subject Property prior to the passage of title to the HRA in order to permit HRA to discontinue the condemnation proceeding with respect to the .Subject Property if the extent of contamination on the Subject Property is such that HRA or CSM would wish to avoid accepting title and possession of the property. WHEREAS, in a given case, it is possible that the extent of contamination of a property may be so great as to pose a threat to .health and safety. In such a case, it would be undesirable for HRA to become obligated to accept the transfer of title and possession of the property before knowing the full extent of the contamination (i.e., whether levels of contaminants are present which would cause a threat to health and safety); WHEREAS, it is impractical for HRA to rely solely upon the provisions of Section 1158.03, subd. 5 in protecting itself from liability because CSM may refuse to accept title from HRA if, by undertaking various construction activities on the Subject Property, HRA or CSM could arguably become so associated with the RJL88523 RC125-95 4 All Properties contaminating conditions that HRA or CSM could lose their protection from liability under Section 115B.03, Subd. 5; WHEREAS, representatives of CSM or HRA have requested that the various owner. of the Subject Property permit the HRA and its consultants to enter the Subject Property for the .purpose of performing soil borings and related sampling and testing to attempt to determine whether soil located upon the Subject Property or groundwater beneath the property may have been contaminated by a release from within or outside the Subject Property or the Don's Appliance Property or any other property; WHEREAS, the owners of several parcels of the Subject Property have so far refused to grant the HRA and its consultants permission to undertake such activities upon their respective portions of the Subject Property; WHEREAS, the HRA may incur liability under state or federal law for conditions of contamination present on the Subject Property if the HRA does not attempt in a reasonably prudent manner to investigate conditions present on the Subject Property prior- to acquisition of the Subject Property; WHEREAS, the HRA desires to be as well informed as possible concerning the extent of any possible contamination present on the Subject Property prior to concluding negotiations concerning the possible purchase prices for the Subject Property and prior to commencement of eminent domain proceedings in the event that the HRA is unable to obtain a voluntary acquisition of the various portions of the Subject Property; NOW, THEREFORE, be it resolved by the Board of .Commissioners of the HRA in and for the City of Richfield as follows: A. The Board of Commissioners hereby finds that acquisition of the Subject Property in eminent domain proceedings has previously been determined by this Board to be required and hereby affirms that determination. B. The HRA has reason to believe that a hazardous substance, pollutant, or contaminant is present on various portions of the Subject Property or the release of a hazardous substance, pollutant or contaminant may have occurred or is likely to occur on various portions of the Subject Property. C. Entry upon the Subject Property for environmental testing is rationally related to health, safety, or welfare concerns of the HRA in connection with possible eminent domain proceedings. RJZ,88523 RC125-95 5 All Properties D. If an Owner of a parcel of the Subject Property refuses to consent to the entry by the HRA and its consultants upon the property for environmental testingj. 't'he HRA's Attorney is directed to apply for a court order authorizing the entry and the removal of any sample or portion from the particular parcel of the Subject Property, giving notice of the court hearing concerning the HRA's request for the order to the Owner of that property, or its attorney. E. The notice to the owner shall also state that the HRA's Executive Director and the HRA Attorney are directed to require that HRA employees or consultants who enter the Subject Property are to do no unnecessary damage to the Subject Property and that they shall restore the Subject Property to substantially the same condition in which it was found. If said employees or consultants remove a sample or portion of the Subject Property for investigation, monitoring, or testing, or if they obtain any data or issue any report, they shall give the Owner of that portion of the Subject Property an equal amount of the sample or portion and a copy of any data or report, if requested by the Owner of the Subject Property, and they shall permit the Owner of that portion of the Subject Property to perform independent investigation, monitoring, or testing of the sample or portion. G. Results of testing performed on the Subject Property shall be included in any environmental assessment worksheet or environmental impact statement which the HRA is required to prepare under Minn. Stat., Ch. 116D. Dated: May , 1995. Chair ATTEST: Secretary The motion for the adoption of the foregoing Resolution was duly seconded by Commissioner , and upon vote being taken thereon, the following voted in favor thereof: RJL88523 RC125-95 6 All Properties And the following voted against same: Whereupon said Resolution was adopted. declared duly passed and RJL88523 RC125-95 7 EXHIBIT A Parcels 1 and 14 (Torrens Certificate Nos. 786331 and 802981)(PID Nos. 33-028-24-44-0082 and -00781: Description of Property to be Taken: That part of Lot 1, lying West of the East 10.5 feet thereof, and the East 10.34 feet of Lot 2, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota and The west 10 feet, 6 inches of Lot 10 and all of Lot il, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Also the east 10.5 feet of Lot 1, Block 1, STRAND-BOWEN SECOND ADDITION all in Hennepin County Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements~in favor of the City of Richfield Property Address: 900 and 815, and 818 77-1/2 Street West, Richfield Name Daniel Adelmann, Trustee of the Robert F. Adelmann Trust David Adelmann, Trustee of the Robert F. Adelmann Trust TOP LINE CYCLE, INC., a Minnesota corporation Mark Turnberg, d/b/a Weekend Freedom Lawn & Garden Equipment, a/k/a Weekend Freedom Sports & Garden Equipment Fee .owners named in Parcel~2 of this Exhibit A Fee owners and mortgagees named in Parcel 13 of this Exhibit A Nature of Interest Fee Owner Fee Owner Tenant Tenant Party Wall Agreement Document No. 601923 Party Wall Agreement Document No. 555892 City of Richfield County of Hennepin CAH87209 RC125-95 Special assessments; utility easement Real estate taxes A-1 Exhibit A (cont'd) Parcel 0083): Torrens Certificate No. 661709 )lPID No. 33-028-24-44- Description of Property to be Taken: Lot 3 and that part of Lot 2 lying west of the East 10.34 feet thereof, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurte- nant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield Property Address: 902 77-1/2 Street West, Richfield Name Nature of Interest Kevin Louis Contract for Deed vendee Deborah Louis Contract for Deed vendee Fee owners named in Parcel 1 Party Wall Agreement of this Exhibit A Document No. 601923 Fee. owners and mortgagee named Party Wall Agreement in Parcel 3 of this Exhibit A Document No. 609801 Ridge Door Sales & Service, Tenant Inc., a Minnesota Corporation City of Richfield Hennepin County C11H87209 RC125-95 Special assessments Real estate taxes A-2 Exhibit A (cont'd) Parcel 3 (Torrens Certificate No. 675728)(PID No. 33-028-24-44- 0084 Description of Property to be Taken: Lats 4 and 5, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield.. Property Address: Name Wayne. A. Bebeau Richard J. Henchal Sandra A. Henchal 904 77-1/2 Street West, Richfield Nature of Interest Fee owner Brooklyn Park Bank, acquired by and now known as Marquette Bank Brooklyn Park Fee owners named in Parcel 2 of this Exhibit A CSM Investors, Inc., a Minnesota corporation Marilyn L. Bebeau Timothy Hennessey, d/b/a Sunset Auto Detail City of Richfield Hennepin County CAH87209 RC125-95 Fee owner Inchoate interest Mortgagee Party Wall Agreement Document No. 609801 Party Wall Agreement Document No. 609802 Possible claimant Contract for deed vendee Special assessments Real estate taxes A-3 Exhibit A (cont'd) Parcels 7 and 8 (Torrens Certificate Nos. 393104 and 526623)(PID Nos. 33-028-24-44-0088 and -0089): Description of Property to be Taken: Lots 1, 2, 3 and 4, Block 2, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota and Lots 5 to 11, inclusive, Block 2, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minneso- ta Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurte- nant easements, EXCEPTING that part of Colfax Avenue South as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies southerly of the center line of West 77 1/2 Street as dedicated in said plat, AND ALSO EXCEPTING that part of the southerly half of West 77 1/2 Street as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies westerly of the northerly extension of the west line of Lot 5, Block 2, in said plat. SUBJECT, however, to the rights of the State of Minnesota in certain access restrictions created by Final Certificates filed June 19, 1963 as Document No. 733619; SUBJECT ALSO to an easement in favor of Northern States Power Company dated November 26, 1965, filed November 29, 1965 as Document No. 829621; SUBJECT ALSO to existing street and utility easements in favor of the City of Richfield. Property Address: Name Louis D. Hunt June J. Hunt Vivian L. Swanson Terry D. Feldmann 901 77-1/2 Street West and 920 78th Street West, Richfield Spouse of Terry D. Feldmann, if any Feldmann Holding Corporation, a Minnesota corporation CAH87209 RC125-95 Nature of Interest Fee owner (Cert. 393104) Inchoate interest (Cert. 393104) Fee owner (Cert. 526623) Contract for deed vendee (Cert. 393104) Inchoate interest (Cert. 393104) Contract for deed vendee (Cert. 526623) A-4 Exhibit A (cont'd) Name Nature of Interest Community Bank, N.A., merged Mortgagee (Cert. 526623) with Bank Midwest, Inc., National Association, which then merged with Truman National Bank and Trust Company and which is now known as Bank Midwest, National Association Richfield Motors, Inc., a Tenant Minnesota corporation, d/b/a Richfield Mitsubishi State of Minnesota Snow fence easement City of Richfield Special assessments Hennepin County Real estate taxes CAR87209 RC125-95 A' S Exhibit A (cont'd) Parcels 9 and 10 (Torrens Certifica Description of Property to be Taken: 7 Lots 1 and 2, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 3 and 4, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to an easement in favor of U.S. West Communications, Inc. dated December 16, 1992, filed December 28, 1992 as Document No. 2329224; SUBJECT ALSO to existing street and utility easements in favor of the City of Richfield Property Address: 800 and 80477-1/2 Street West, Richfield Name Nature of Interest Anthony B. Doherty Fee owner Spouse of Anthony B. Doherty, if any Inchoate interest Fee owners and mortgagees named in Parcel 11 of this Exhibit A Doherty Furniture & Carpet Co., a Minnesota corporation d/b/a Doherty's.Home Furnishings City of Richfield Hennepin County CAH87209 RC12S-95 Party Wall Agreements Document Nos. 500398 and 500400 Tenant Special assessments Real estate taxes A-6 Exhibit A (cont'd) is 11 and 12 (Torrens Certificate s. 33-028-24-44-0075 and -0076): Description of Property to be Taken: . 542041 and 685006)(P- Lots 5 and 6, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 7 and 8, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurte- nant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 808 and 812 77-1/2 Street West, Richfield Name Nature of Interest Adelmann and Schulz, apart- Fee owner nership consisting of Robert F. Adelmann and Wilfred O. Schulz First Western Bank - Richfield Mortgagee Summit State Bank of Rich- Mortgagee field, which has been acquired by and is now known as Firstar Bank of Minnesota, National Association First Western Bank, acquired by and now known as Firstar Bank of Minnesota, National Association Mortgagee and financing state- ment creditor Fee owners named in Parcels 9 and 10 of this Exhibit A Fee owners named in Parcel 13 of this Exhibit A CAH87209 RC125-95 Party Wall Agreement Document Nos. 500398 and 500- 400 Party Wall Agreement Document No. 711441 A-7 Exhibit A (cont'd) Name Nature of Interest Boran General Trading, Inc., a Tenant Minnesota corporation, d/b/a Boran's General Tradinq and Boran's General Tradinq Co., a/k/a Boran's General Trading Company, Inc. Curtis Rosequist d/b/a Curt's Tenant TV, a/k/a Curt's TV Sales & Service Thomas Carlson, d/b/a C and S Tenant Service Steven H. Krohn, d/b/a Quality Tenant Computer Service John M. Lebahn, d/b/a Quality Tenant Computer Service Doherty Furniture & Carpet Tenant Co., a Minnesota corporation, d/b/a Doherty's Home Furnish- ings City of Richfield Special assessments Hennepin County Real estate taxes CA987204 RC125-95 A- 8 Exhibit A (cont'd) Parcel 13 (Torrens Certificate No. 770962)(PID No. 33-028-24-44- 0077 Description of Property to be Taken: Lot 10, except the west 10 feet 6 inches thereof and all of Lot 9, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County., Minnesota. Together with. the easements appurtenant for party wall purposes over the west 1 foot of Lot 8, Block 1 as shown in Document No. 556318 and over the East 6 inches of the west 10.5 feet of Lot 10, as shown in Document No. 555892, all as referred to in deed Document No. 71880.8, Files of Registrar of Titles. Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 816 77-1/2 Street West, Richfield Name Nature of Interest Robert F. Adelmann Fee owner Lorraine Adelmann Fee owner Daniel Adelmann, as Trustee of the Robert F. Adelmann Trust David Adelmann, as Trustee of the Robert F. Adelmann Trust Fee owners and mortgagees named in Parcel 12 of this Exhibit A Fee owners named in Parcel 14 of this Exhibit A Fee owner Fee owner Party Wall Agreement Document No. 711441 Party Wall Agreement Document No. 555892 Business Furniture Brokers, Tenant Inc., a Minnesota corporation, d/b/a The Business Furniture Store, Inc. City of Richfield Hennepin County Special assessments Real estate taxes CAH87209 RC125-95 A- 9 Exhibit A (cont'd) 15, 16, 17, 18 and 19 (Torrens Certificate Nos. 271328, %snnrn.~ ~ea.~nn _-a e~»~t ~ inrn u..e 4Z-A7A-24-dd-f1f1Q1 _ - -0099. -0100, and -0101)_: Lots 8, 9, 10 and 11, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 4, 5, 6 and 7 and the west 1 foot of Lot 3, Block 2, STRAND- BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lots 1 and 2; and Lot 3 except the west 1 foot thereof, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and That part of the vacated Aldrich Avenue South adjoining Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD lying between the Westerly extensions across it of the South line of West 77-1/2 Street and the North line of Market Drive as extended to the West line of STRAND'S SECOND ADDITION TO RICHFIELD, according to the plat thereof on file or of record in the office of the Register of Deeds, Hennepin County, Minnesota and Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to the rights of the State of Minnesota in certain access restrictions created by Final Certificates filed June 19, 1963 as Document No. 733619; SUBJECT ALSO to existing street and utility easements in favor of the City of Richfield Property Addresses: 819, 811, 809, 803, 801, 725, 723, and 719 77-1/2 Street West Name Robert F. Adelmann Lorraine Adelmann Nature of Interest Fee owner (Parcels 15-18); contract for deed vendee.. (Parcel 19) Inchoate interest CAH87209 RC125-95 A-10 Exhibit A (cont'd) Name Jens H. Andersen Ruth H. Andersen First Bank National Association Fee owner named in Parcel 20 of this Exhibit A Richfield Plumbing Co., a Minnesota corporation Great Northern I., Inc., d/b/a The Drapery Place Hagen Office Equipment, Inc., d/b/a Hagen Micro Age Richard C. Ott, d/b/a R P M Automotive Paul J. Krinke, d/b/a R P M Automotive Lael Letecki, d1b/a Classic Car Care Richfield Motors, Inc., a Minnesota corporation, d/b!a Richfield Mitsubishi TOP LINE CYCLE, INC., a Minnesota corporation State of Minnesota City of Richfield Hennepin County Nature of Interest Fee owner (Parcel 19) Fee-owner (Parcel 19) Mortgagee (Parcel 17) Party Wall Agreement Document No. 556547 Tenant Tenant Tenant Tenant Tenant Subtenant Tenant Possible leasehold Snow fence easement (Parcels 15, 16 and 17) Special assessments Real estate taxes CA887209 RC125-95 A-11 Exhibit A (cont'd) Parcel 20 (Torrens 0097): ificate No. 781024)(PID No. 33-_02.8-24-44_- Description of Property to be Taken: Lot 4, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, .and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 715 77-1/2 Street West, Richfield Name Nature of Interest F & D Properties, a Fee owner partnership consisting of Dayle R. Erickson and Fred C. Talbot Fee owners and mortgagee named in Parcel 18 of this Exhibit A Fee owners named in Parcel 21 of this Exhibit A Borofka Huth Bedrooms, Inc., d/b/a PM Sleep Center City of Richfield Hennepin County Party Wall Agreement Document No. 556547 Party Wall Agreement Document No. 444542 Tenant Special assessments Real estate taxes CAH87209 RC125-95 A-12 Exhibit A (cont'd) 1 21 (Torrens Certificate Nos. 225502 and 228498)(PID ~8-24-44-0096): Description. of Property to be Taken: Lots 2 and 3, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: '705 77-1/2 Street West, Richfield Name Nature of Interest Robert F. Adelmann Fee owner Lorraine Adelmann Inchoate interest Fee owners named in Parcel 22 Party Wall Agreement of this Exhibit A Document No. 475734 Fee owner named in Parcel 20 of this Exhibit A Twin City Tire, Incorporated Naegele Outdoor Advertising, Inc. Party Wall Agreement Document No. 444542 Tenant Sign lease Borofka Huth Bedrooms, Inc. City of Richfield Hennepin County CAH87209 AC125-95 Sign lease Special assessments Real estate taxes A-13 Exhibit A (cont'd) 22 yens Certificate ID No. 33-028-24-44- Description of Property to be Taken: Lot 1, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 701 77-1/2 Street West, Richfield Name ~ Nature of Interest Lula H. Kerssen Fee-owner Spouse of Lula H. Kerssen, if any Fee owners named in Parcel 21 of this Exhibit A Greg Njoes dlbla Richfield Flowers City of Richfield Hennepin County CAH872Q9 RC125-95 Inchoate interest Party Wall Agreement Document No. 475734 Tenant Special assessments Real estate taxes A-14 Exhibit A (cont'dj Parcels 23, 24 and 2 ificate Nos. 691007, 69100 092. -0093, and -0094): Description of Property to be Taken: Lots 10 and il, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lot 9, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lot 8, except the easterly 6 inches thereof, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: 718 and 712 77-1/2 Street West, Richfield Name Nature of Interest • William T. Horner Fee owner Janis M. Horner First Security State Bank Fee owners named in Parcel 26 of this Exhibit A Fee owner Mortgagee and assignee of leases and rents Party Wall Agreements Document Nos. 433420 and 483425 Genuine Parts Company, a Tenant Georgia corporation d/b!a NAPA Auto Parts PREFERRED MECHANICAL SERVICES Tenant CORFORATION, d/b/a Preferred Heating and Air Conditioning Company City of Richfield Special assessments Hennepin County Real estate taxes C7-887209 RC125-95 A-15 Exhibit A (cont'd) 26 is Certificate No . ; 518)(PID No. 33-028-24-44- Description of Property to be Taken: Lots 6, 7 and the easterly 6 inches of Lot 8, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: Name Reith C. James Mary Anne James Fee owners and mo: in Parcels 24 and Exhibit A THE. AMMONIA HOUSE, INC., a Minnesota corporation City of Richfield Hennepin County CAH87209 RC125-95 708 77-1/2 Street. West, Richfield Nature of Interest Fee owner .Fee owner rtgagee named Party Wall Agreement 25 of this Document Nos. 433420 and 483425 Tenant Special assessments Real estate taxes A-16 Exhibit A (cont~d) Parcel A (No PID No.)(Affects Torrens Certificate No. 759625): Description of Property to be Taken: That part of West 77th Street as dedicated in the plat of STRAND- BOWEN SECOND ADDITION, which lies westerly of the northerly extension of the west line of the easterly 4.5 feet of Lot 8, Block 1, of said plat. Said property is adjacent to and abutting the following described land: All of Lot 8, except the Easterly 4.5 feet thereof; Lots 9 to 11, inclusive, Block 1, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota SUBJECT, however, to existing street and utility easements in favor of the City of Richfield. Property Address: None. Adjacent to 918-914 77-1/2 Street West, Richfield Name Nature of Interest CSM Investors, Inc., a Fee owner Minnesota corporation Adelmann - Schulz Partnership, Possible claimant a Minnesota general partnership City of Richfield Street easement Hennepin County Real estate taxes CAH87209 xci2s-9s A-17 S AESEAIICtt SPEt.tAtlSl'S Mr. Murray Kornberg CSM Corporation 2561 Territorial Road St. Paul, MN SS 114-1.504 ~~.• ~' 4- - ~_ ~ _' -.. ~s yr RS f (MPO)l302-006/04.94! 14 Itap~d Ci!?. South Dakota • ,~I-~uquerquc.. \co• ~tcz,;:~ P:rtre, t,~uth 1)ak~iti- • Minneapolis. ~tinne:oc. May 3. 1994. RE: Regulatory Fiie Reviews for Richfield, Minnesota Redevelopment Project RFJSPEC Report No. 511 Dear Mr. Kornberg; The purpose of this report is to summarize RE/SPEC, Int.'s (RE/SPEC) review of select Minnesota Pollution Control Agency (41PCA) and Hennepin County Environmental Management Department (HC) files regarding sites at and in the vicinity of the Richfield redevelopment project (the STTE). The SITE is an area bounded by Lyndale Avenue to the east, Market Drive to the south, Emerson Avenue to the west and West 77th Street to the north. The S1TE does not include. the Conoco service station located at the southwest corner of the Lyndale Avenue/West 77th Street intersection. Environmental Data Resources, Inc. (EDR) initially searched various state and federal environmental regulatory data bases to identify listed sites of known or potential environmental concern at or in tha vicinity of the SITE (EDR report dated March 22, 1994). The EDR data base seatch was performed according to the requirements of an ASTM standard Phase 1 Environmental Site Assessment (ASTM Practice E 1527-93, sec. 7.2.1.1). Based primarily on their proximity to the SITE, available public information on several EDR- identified MPCA and HC sites was reviewed for addirional informauon by REJSPEC. Select portions of referenced reports, key figures and key correspondence from these files are included as attachments to this report. MPCA Leaking Underground Storage Tank Sites Rech~elrt Mitsubishi, 920 West 78th Street, Richfteld (on-SITE) d 6%93 l d 7 r ose iscovered /92, c US Leaksite # S512, ' One, 550-gallon used oil underground storage tank (UST) and two, S50-gallon new motor oil USTs were reportedly located inside the northern portion of the existing Richfield Mitsubishi building. A UST release was repotted to the MPCA in July, 1992, when Applied Engineering found indications of contamination in hand auger borings placed near the USTs. Additional soil barings advanced by 'Twin City Testing Corporation (Z'CT) in late 1993 sufficiently demonstrated to the MPCA that the petroleum release from the USTs did not significantly impact the environment. However, groundwater samples collected in two soil borings found tetrachloroethene to be present in concentrations of 150 and 210 parts per billion (ppb}, above rile Minnesota Department of Health's (MDH) Recommended Allowable Limit (RAL} of 7 ppr. Tetrachloroethene is a solvent .commonly associated with dry cleaning or vapor degrea~ltl~ Based on a "surficia] inquiry", TCT concluded that the source of the tetrachloroether.~ 4ppcarea to be from an off-sits; source. G!'inc Itcc !)ri~c. Suuc ain, :~ra_n Ili!!• ~tinnc.,,ci 55!Z~ ti',i • tGl2) ~!I(,.g^-i • f',~X IGl_'1 +~r,.`)-t;~ KS1(MtaO)/302-00610'4-~?41 l4 The MPCA issued a ctosurc; letter for the petroleum component of the UST release on June I, 1993. However, ciuC to the presence of non-potrolc.um contaminants, the site was referred to the MPCA's Site Response Section for continued administration. In November, 1993, Richfield )/litsubishi was invited to partioipstt in the Site Response Section's Voluntary Investigation and Cleanup program (VIC). The VIC Pro~,ram is drsil;nrd to provide technical oversight by the MPCA during voluntarily investigations and cleanups of non-petroleum contamination,. usually with the goal of achieving some limit of liability from the state. VIC project mansgger Mr. ]onathan Smith was contacted by telephone on April 28, 1994. Mr. Smith stated that R.ichficid 141itsubishi had entered the' VIC program. A~carding to Mr. Smith, Richfield Mitsubishi had installed f~~ur groundwater monitoring wells on their site during the ppetroleum investigation releasC (this information was not present in the file during our review). The monitoring wells reportedly demonstrated that groundwater flow beneath the site was generally southerly, and that tetrachloroethene concentrations were highest in wells placed near the north property boundary. Low levels (below RALs) of trichloroethene and cis I,2 dichlorocthene were also detected in groundwater samples. Two soil borings had also been placed near a dry cleaning facility [orated within nnc block north of the Mitsubishi facility. Mr. Smith stated that tetrarhhroethene was enrc~untered in the two sail borings placed near the dry cleaner, and that the dry cleaner appeared to he a "hot spot" (a point source of contamination}. t)n Apri126, 1994, the MPCA issued Richfield Mitsubishi a limited off-site source determination letter, stating, in part, that "...the MPCA staff has concluded that the site is not the source of the Identified Relea.5e (the tetrachloroctheno, triehloroethene and cis 1,2 dichloroethene detected in groundwater] and the contamination originates from an off-site source." The letter continues "The MPCA Commissioner is hereby issuing a determination to take no further action under Ivlrnn Star. l iSB.t)1 to 115B.1$ against the Companies [Richfield Mitsubishi, Feldman Holding Corporation and Vivian L. Swanson] with respect to the Identified Release." The letter includes the limitation that "It should be noted that only a portion of the site was investigated, specifically the upgradient area. Because the downgradient portion of the site, particularly downgradient of the Richfield Mitsubishi Building, has not been investigated, the presence, absence and/or source of any on-situ release other Than the Identified Release has not been determined." Mr. Smith concluded by stating that the dry ~aning bc.siness will soon be requested to investigate their property as a potential source of the observed solvent contamination. Total Petroleum, 7645 L~fndale Avenue South, Richfield -!/8 -nite rrorrheaar, UST Leaksite X6123, discovered 3/93, active flee A UST release was reported in March, 1993, at the Total Petroleum service station located on the northeast corner of the Lyndaltr Avenue/West 77th Street intersection. The UST release was discovered when Braun Intertec advanced soil borings at the site as part of a pre-aquisition a.SSessment for the Ciry of Richfield. Total Petroleum then contracted EnecoTech Midwest, Inc., (EnecoTech) to complete a Remedial Investigation {RI) cif the site. The En~caT'ech Rl included the plaeemettt of four groundwater monitoring wells, two of which were placed a~ the south of the service station, across West 77th Street. ' EnecoTech summarized the findings of their RI in a March 1, 1993 letter to the MPCA. EnecoTech found that hydrocarbon impacts to soil were limited to on-site soils in the vicinity of the USTs and to off-site soils immediately above the water table at 36 to 38 feet below grade. Groundwater was determined to flow south-southeasterly bcreath rite service station. Two rounds of groundwater samp~e anal~'srs (9122/93 and 11124/93) demonstrated it maximum henzene coneentrati~~n of 3?4 parts per Killian (ppb) in MVIW-1, located centrally on the Total Petroleum site (the current R.AI. for benzene is iU pph). No free product was reported in any of the monitoring wells. 2 04/28/95 11:18 FAZ 612 648 2404 CSY CORPORATION 0002/005 From REiSPEC Inc. PFiOPE Nlo. :612 X86 9761 Apr. 28 1995 9: S6Ari P82 Ivir. Murray Kornberg CSM Investors, Inc. 2561 Territorial Road St. Paul, MN 55114 RapW Ctty, South 1?aka~ • Albuqut qque, Niew Mexico Pkrrc, South Dakota • bL'nnatpol4, Minnesota Apri128, 1995 Subject: Phase II ESA Preliminary Results Richfield Redevelopaaeat lZB/SPBC X302-32 Dear Mr. Kornberg: As requested in our telephone conversation 'on April 27, 1995, RPJSPEC has prepared the following preluninary summary of the additional assessment oomplexd at the refcrcnixd site. The focus of the additional assessment was to further assess the exunt of tttrachlorcethene t;PC~ impacts previously detected at the west end of the strip mall from 908 to 918 West 77 1/2 Street in Richfield, MN. The additio>al assessment included collection of soil and groundwater samples for analysis of PCE from 24 t3eoprobe locations an the eaterior of the building, and two one-foot-deep borings located adjacent to floor draiffi inside the buildings. The sampling locations are depicted on the attached Figures I and ~. A sample of sediment from within the MCS floor drain and a water sample froth the former Don's Appliance sewer-line oil/water separator were also submitted for PCE analysis. The. Geoprobe assessment was conducted from Apri13-3, 1995. . On A,pri17, 1995, an underground storage tank (US'1~ was removed from the north side of the Don's Appliance Store. One excavation bottom sauiplG at seven and one half icet below grade and two one-foot below-grade sidewall samples were collected and submitted for PCB analysis. A sannple of the sludge from withiu the UST was also submitted for PCB analysis, even though there was no indication of a release from the UST. The results of the soil sample analyses are posted on Figure i, with the sample depth and corresponding 1;`CE concentration in parts per-billion (ppb) being posted adjacent to the sampling point. 'The posted values are those obtained using the gas chromatograph in the Gcoprobe's mobile laboratory. The values contained in parentheses are the results of confirmation samples that acre submitted to a Minnesota certified laboratory. For Geoprobe sampling paint CJP-11, rho Cieoprobe analytical results should be disregarded. si>2ce there was a reporting ar>tiomaly associated with the Geogrobe analytical rtsuits. 6 Putt: 7tee ptive, Suicc 280, Arden HUIs, Mitmebvta SS> 12-3745 (6t7J (86977! PAx C6~2) t86~9761 From : REiS'PEC Inc. PF~E No. :612 ~6 9761 Apr. 28 1995 9: 59AM P83 Richfield Asxessment Results April 28, 1995 ~c ~ . The greatest soil impacts were detaxed in the 0-2 foot depth interval of GP- I S wild CAP-20 located 0o the north of the farmer dry cIcancrs. PCB concentrations ranging from 14,000 ppb to 85,000 ppb are indicative of a surface release iu this arcs. The next most significant detections were PCE co~ncentratioas of i, lib ppb in DP-16, Located to the north of Don's Appliance, and 630 ppb that was collected adjacent to the floor drain in Don's Appliance. Tha satuple coLleetad ad~Cent to the floor drain Inside Don's Appliancx does not appear to be atbributabie to an off-site source. Groundwater analytical results are shown on Figure 2. Past assessment in the area indicated that PCl/ had appazently been released from the sewer line near the fnursection of West ?7th Street and Colfax Avezlue. The results of the most recent assessment appear to eont~r with tha past findings. There appears to be a significant PCl3 groundwater plume migrating southwest from fire intersection of West 77th Street and Colfax Avetlue. However, there does appear to be an overlapping plume, of less magnitude, that appears to originate from the nortL side of the former dry cleaners, migrating southwest. ' The results of the sludge sample from within ttte UST and die water sample from the oillwater sepazator associated with Don's Applian~x are also shown on Figure 2. The sludge sample contained 20,000 ppb of PCB, indkating that former operations that used the UST (thought to be Feldmann Imports) also used PCB. Water from within the oiUwater separator contained 7.1 ppb of PCE that is in excess of the 7.0 ppb groundwater cleanup criteria. A detailed final report of the assessment results in being prcparod and will be available soon. If you have any questions, I may be contacted at 486-9771. Siaccrciy, R~/SPEC Inc. 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N A O ~ rt y w rf ~ -'• • O ~ to rt w 0 ac o 0 ° tV 0 0 :~~ i t..~ .EXHIBIT HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 28 Agenda May 15, 1995 Issue Statement: Proposed approval of Richfield Rediscovered Housing Program, dated May 15, 1995: • approval of Modification No. 4 to the Redevelopment Plans for Redevelopment Project Areas "A" and "B"; • modification No. 1 to the Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-3" and "B-3"; and • Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-4" and "B-4". Background: During late winter and spring 1995, staff undertook the following: Contacted approximately 165 property owners that have residential property valued, at less than $58,000 by the assessor to determine their interest in selling. Inspected at the owners request 36 sites to determine program eligibility. Initiated more detailed inspections and appraisals of approximately 15 properties in preparation for possible purchase. The proposed 1995-96 Richfield Rediscovered Program would accomplish the following: • Purchase and demolish 12 to 15 substandard homes. • Provide 12 to 15 new homes valued in a range of $110, 000 to $160,000. • Generate land proceeds which returns approximately one-half of the HRA's appropriation after the initial year. Land proceeds and subsequent tax increment related to the 1995-96 program would support HRA remodeling and transformation activities. • Provide a new construction relocation resource for New Ford Town ,and Rich Acres residents.. To date, four new homes have been purchased by New Ford Town and Rich Acres residents. Currently three additional families-are exploring new construction. The Redevelopment Plans and Tax Increment Financing Plans under the proposed modification are attached for review. The text of the modifications for the 1995-96 Program, known as Cycle 4, are essentially the same as past modifications. The reason modifications must be made is to alter the list of properties which may be purchased. Some property previously identified is deleted because it is no longer available; other property newly identified is added. Pages A-1 through A-3 and B-1 _ through B-2 is a composite list of all property from which those to be purchased would be taken. As the financial resources available from the HRA are limited, approximately 12 to 15 properties may be purchased. Therefore, the balance of properties remain as qualifying candidates for acquisition when additional funding becomes available. Most of east Richfield is encompassed in Redevelopment Project Area "A". Most of west Richfield is encompassed in Redevelopment Project Area "B". For easy readability, the page numbering of each section is prefixed by the type of modification. For example, the modification to the Redevelopment Plan for Redevelopment Project Area "A" is page numbered A-1, A-2, etc. while .the page numbering for modification to the Tax Increment Financing Plan for Tax Increment District A-4 is paged numbered A- 4-1, A-4-2, etc. The "Note to Reader" at the beginning of the plans provides additional information with regard to plan structure. To implement the program, the attached resolution must be adopted by the HRA. That resolution: 1. approves the Redevelopment Plans; 2. the Tax Increment Financing Plans; and 3. refers these documents to the Planning Commission and City Council for their consideration. If the HRA approves the modification, the Planning Commission on May 23, 1995 would be requested to consider resolutions which find the redevelopment plans and tax increment financing plans as well as the proposed acquisition and disposition of property by the HRA to be in conformance with the Comprehensive Plan for the City. In as much as these plan documents are very similar to those of previous program cycles, a favorable response may be forthcoming. Following a public hearing to be scheduled for June 26, 1995, the City Council would consider approving the redevelopment plans and tax increment finance plans. Recommended Motion: Adopt the attached resolution which: A. Approves Modification No. 4 to the Redevelopment Plans for Redevelopment Project Areas "A" and "B"; .Modification to the Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-3" and "B-3"; Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-4" and "B-4"; and by reference also approves a modification to the Richfield Redevelopment Project Plan and Tax Increment Plan all subject to review and approval by the Planning Commission. B. Requests the Planning Commission to review the redevelopment plans and tax increment financing plans and find the plans and property acquisition and disposition to be in conformance with the Comprehensive Plan of the City. C. Requests the City Council to: 1. Hold a public hearing on June 26, 1.995 at which time the modified redevelopment plans, modified tax increment plans, and new tax increment plans will be considered; and 2. Approve the plans by adopting a resolution to be provided. Basis of Recommendation: 1. To be successful, the momentum of Richfield Rediscovered must be continued. 2. Richfield Rediscovered is a proven redevelopment program. 3. The Planning Commission is required to review the 1995 plans and make a finding as to whether proposed acquisition and disposition of the properties identified would be in conformance with the Comprehensive Plan. 4. There is a market of property owners who wish to voluntarily sell their substandard and/or obsolete homes. 5. There is a builder and buyer market for new, larger, contemporary housing. 6. Funding sources are available to continue the program. 7. Existing staff resources are available to administer the program. 8. Legal counsel has reviewed the program and related documents and found them to be in compliance with existing law Alternative Recommendation: 1. Modify the proposed program. 2. Delay action until a future time. 3. Terminate any additional activity on the proposal. Discussion/Decision Mode: This modification is in part being processed to provide new construction opportunities for New Ford Town and Rich Acres residents and also to make it possible for other interested buyers to initiate construction during 1995. At a forthcoming' meeting the HRA will be requested to approve the purchase of specific property. Respe u submitted, s Jam .Prosser Executive Director JDP:ds RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION APPROVING MODIFICATION TO RICHFIELD REDEVELOPMENT PROJECT PLAN, CONSISTING OF MODIFICATION N0.4 TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREAS A AND B, MODIFICATION NO.1 TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT REDEVELOPMENT DISTRICTS "A-3" AND "B-3", AND TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT REDEVELOPMENT DISTRICTS "A-4" AND "B-4", ALL RELATED TO THE RICHFIELD REDISCOVERED HOUSING PROGRAM; REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON; 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 (the "HRA") adopted redevelopment plans for Redevelopment Project A and Redevelopment Project B (the "Redevelopment Plans") and tax increment financing plans for Tax Increment Financing District "A-1"and Tax Increment Financing District "B-1"-(the ""TIF Plans") for the Richfield Rediscovered Housing Program (the "Project") on July 16, 1990. The Redevelopment Plans and TIF Plans are known collectively as the "Plans". 1.02 The HRA adopted Modification No. 1 to the Redevelopment Plan for Redevelopment Project Area "A" and Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Financing District No. "A-1" and a new tax increment financing plan for Tax Increment Redevelopment District No. "A-2" on July 20, 1992. 1.03 The HRA adopted Modification No. 1 to -the Redevelopment Plan for Redevelopment Project Area "B" and Modification No. 1 to the tax increment financing plan for Tax Increment Redevelopment District "B-1" and a new tax increment financing plan for Tax Increment Redevelopment District No. "B-2" on July 20, 1992. 1.04 On May 17, 1993 the HRA adopted a Redevelopment Plan for the Richfield Redevelopment Project Area, which consisted, in part, of the Project and which Redevelopment Plan contained Modification No. 2 to the Plans. 1.05 The HRA adopted Modification No. 3 to the Redevelopment Plan for Redevelopment Project Area "A" and Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Financing District No. "A-2" and a new increment financing plan for Tax Increment Redevelopment District No. "A-3" on June 20, 1994. 1.06 The HRA adopted Modification No. 3 to the Redevelopment Plan for Redevelopment Project Area "B" and Modification No. 1 to the tax increment financing plan for Tax Increment Redevelopment District "B-2" and a new tax increment financing plan for Tax Increment Redevelopment District No. "B-3" on June 20, 1994. • 1.07 Additional property acquisitions have occurred and will continue to occur thereafter and have necessitated the consideration of this Modification No. 4 to the Plans, consistent with the plan to modify the Plans annually with the addition of new properties. 1.08 The HRA has caused to be prepared modified Plans which are contained in a document entitled "The Richfield Rediscovered Housing Program, Redevelopment Plans and Tax Increment Financing Plans" dated May 15, 1995, 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 Project will be advanced by adoption of Modification No. 4 to the Plans. 2.02 The Modification No. 4 to the Plans is hereby approved and adopted by the HRA, subject to review and approval by the Richfield Planning Commission. Section 3. Further Proceeding. 3.01 The Executive Director of the HRA is hereby authorized and directed to transmit copies of the Modification No. 4 of the Plans to the school board of Independent School District No. 280 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 Modification No. 4 to the Plans by the City. 3.02 The HRA requests that the Richfield Planning Commission review Modification No. 4 and comment regarding the consistency of the modified Plans with the City's comprehensive plan. 3.03 The HRA requests the City to hold the public hearing on Modification No. 4 to the Plans required by Minnesota Statutes, section 469.028 and Minnesota Statutes, section 469.175, subd. 3 as soon hereafter as is practicable and recommends that the modified Plans be approved by the City. 3.04 The HRA intends to request that the City from time to time consider various other actions necessary. to the implementation of the Modified Plans and pledges its cooperation with the City in achieving the objectives of the Modified Plans. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of May, 1995. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary THE RICHFIELD REDISCOVERED HOUSING PROGRAM 1995 REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS Housing and Redevelopment Authority in and for the City of Richfield, Minnesota MAYOR Martin J. Kirsch CITY COUNCII. Michael Sandahl, Council Member At Large Susan Rosenberg, Ward 1 Russ Susag, Ward 2 Donald Priebe, Ward 3 HOUSING AND REDEVELOPMENT AUTHORITY Thomas Harms, Chairperson .loan Helmberger, Vice-Chairperson Vern Luettinger, Secretary Russ Susag, Member Michael Sandahl, Member CITY MANAGER/EXECUTIVE DIRECTOR .lames D. Prosser PLANNING COlVIlVIISSION Daniel Linnihan, Chairperson Kristal Stokes, Vice Chairperson Timothy Erlander, Secretary Pamela Dmytrenko, Member David Gepner, Member Mitchell Hadley, Member Kevin Hansen, Member Dawn Postudensek, Member Paul Wasko, Member CITY STAFF Byron Wallace Director, Community Development Bruce Palmborg Housing & Redevelopment Coordinator Katia Medvetski Redevelopment Specialist Bruce Nordquist Housing Supervisor Pamela Rohne Rehabilitation Specialist CONSULTANTS John B. Dean Ronald L. Batty HRA Legal Counsel Holmes & Graven, Chartered Minneapolis, MN Sidney Inman Mark Ruff Publicorp, Inc. Minneapolis, MN NOTE TO READEtt The text contained within the following modified housing program maintains the goals and objectives set forth in earlier program editions. Substantive changes to the current housing program include an updated list of properties identified for acquisition and program implementation as well as changes in the budget, calculation of tax increment, and estimate of impacts to various taxing jurisditions. The reader is encouraged to review the original housing program plans and prior plan modifications. The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "A" Modification No. 1 to the Taz Increment Financing Plan for Taz Increment Redevelopment District "A-3" Taz Increment Financing Plan for Taz Increment Redevelopment District "A-4" All Related to the Richfield Rediscovered Housing Program Dated: May 15, 1995 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 (612) 861-9760 Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "A' TABLE OF CONTENTS Part L Richfield Rediscovered Housing Program Modification No. 4 Redevelopment Plan for Redevelopment Project Area "A" PART I -REDEVELOPMENT PLAN Original Plan Pa a Modification No. 4 Pa e A. Statement of Public Pu ose 1 - - - B. Statuto Autbori 1 - - - C. Descri tion of Redevelo merit Project Area 2 - - - D. Statement of Goals and Ob'ectives 3 - - - E. Develo went Activities and A reements 4 - - - F. Pro osed Land Use 6 - - - G. Ac uisition and Relocation Activities 6 A-1 H. Environmental Considerations 7 - - - L Redevelo went Plan Modification 7 _ _ _ J. Administration of Redevelo merit Project 7 - - - A-i Part L Modification No. 4 Redevelopment Plan for Redevelopment Project Area "A" G. Acquisition and Relocation Activities 1. Ac uisition In furthereance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in prevous years to identify property for acquisition. In its sequential numbering system, this is Cycle IV in the housing program. As in the past, residential property owners were contacted and surveyed to determine (a.) whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional means of obtaining candidate properties were made by (a.) property owners contacting the HRA requesting that their property be considered for the program and (b.) referrals by the city's health and inspections department. Candidate properties were further evaluated for program eligibility and inspected. The following properties are identified for acquisition under Cycle IV of the program: PROPERTY ADDRESS PID NUMBER 6345 -Bloomin ton Ave. 26-028-24-11-0025 6437 -Bloomin ton Ave. 26-028-24-14-0088 7429 - Du ont Ave. ++ 33-028-24-41-0076 7037 -Oakland Ave So. 35-028-24-22-0042 6629 -Portland Ave. 26-028-24-32-0045 7216 - 1st Ave.* 34-028-24-13-0094 6616 - 2nd Ave.* 27-028-24-42-0064 7241 - 2nd Ave. 34-028-24-13-0150 6812 - 13th Ave. 26-028-24-43-0022 6237 - 14th Ave. 26-028-24-12-0069 6349 -14th Ave. 26-028-24-12-0087 6438 -15th Ave. 26-028-24-13-0061 6533 -15th Ave. 26-028-24-13-0108 6320 -16th Ave. 26-028-24-11-0017 6400 -16th Ave. 26-028-24-14-0076 7525 -Aldrich Ave So.* 33-028-24-41-0164 7537 -Emerson Ave So. 33-028-24-42-0132 6833 -Grand Ave So. 27-028-24-33-0070 7300 -Portland Ave So. 34-028-24-14-0015 7304 -Portland Ave. So. 34-028-24-14-0016 7520 -Portland Ave So.* 34-028-24-41-0021 6609 - 2nd Ave So. 27-028-24-42-0056 6914 -13th Ave So. 26-028-24-43-0076 A-1 PROPERTY ADDRESS PID NUMBER 6329 -14th Ave So. 26-028-24-12-0091 6408 -14th Ave So. 26-028-24-13-0117 6432 -15th Ave So.* 26-028-24-13-0059 506 - E. 67th St. 27-028-24-41-0014 6507 -131oomin ton Ave. 26-028-24-14-0116 6600 -Columbus Ave. 26-028-24-32-0004 7025 - Nicollet Ave.* 34-028-24-12-0022 6620 - 5th Ave. 27-028-24-41-0028 6915 - 13th Ave. 26-028-24-43-0064 6326 -14th Ave. 26-028-24-12-0140 6928 - 14th Ave. * 26-028-24-43-0069 6217 -15th Ave. 26-028-24-12-0058 6220 -15th Ave. 26-028-24-12-0060 6508 -Bloomin ton Ave 26-028-24-13-0097 7027 -Columbus Ave So. 35-028-24-22-0001 7329 -Girard Ave So. 33-028-24-13-0057 6816 -Pleasant Ave So. 27-028-24-33-0061 6820 -Pleasant Ave So. 27-028-24-33-0062 6820 -Portland Ave So.* 27-028-24-44-0006 7415 - 3rd Ave So. + 34-028-24-41-0088 6945 -14th Ave So. 26-028-24-43-0013 6525 -15th Ave. So. 29-028-24-13-0110 6428 -16th Ave So. 26-028-24-14-0081 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. Early acquisition. Under Cycle IV, the property listed in the following table (formerly part of the Cycle III property list) is hereby removed from the acquisition list for Redevelopment Project Area A. This property may be considered for future program acquisition. (Also note that this property is identified for removal from the list of properties for Tax Increment District "A-3 "). PROPERTY ADDRESS PID NUMBER 6900 - 13th Ave. 26-028-24-43-0073 6321 - 14th Ave. 26-028-24-12-0093 6435 - 15th Ave. 26-028-24-13-0043 6504 - 15th Ave. 26-028-24-13-0076 6825 -Elliot Ave. 26-028-24-34-0085 7211 -Portland Ave. + 35-028-24-23-0002 6608 -Stevens- Ave. 27-028-24-42-0073 +Double lot. A-2 Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A-3" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Modification No. l Taz Increment Financing Plan for Taz Increment Redevelopment District "A-3" PART I -TAX INCREMENT PLAN Original Plan Pa a Modification No. 1 Pa e A. Statuto Authori 7 _ _ _ B. Statement of Ob'ectives 7 _ _ _ C. Develo meat Pro ram 7 _ _ _ D. Description of Property in the Taz Increment Financin District 9 A-3-1 E. Classification of the Taz Increment Financin District 9 - - - F. Parcels in Ac uisition 10 A-3-1 G. Estimate of Costs 11 - - - H. Estimated Amount of Obli ated Funds 11 - - = I. Sources of Revenue 11 - - - J. Ori final Taz Ca aci 12 _ _ _ K. Estimated Ca tured Taz Ca aci 12 - - - L. Duration of the District 12 - - - M. Estimated Im act on Other Tazin Jurisdictions 13 - - - N. Modifications of the Taz Increment Financin District 13 - - - O. Limitation on Administrative Ez enses 13 - - - P. Limitation on Duration of Taz Increment Financing Districts 13 - - - Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement 13 - - - R Limitation of the Use of Taz Increment 14 - - - S. Notification of Prior Planned Im rovements 14 - - - T. Ezcess Taz Increment 15 - - - U. Restrictions on Poolin ;Five Year Limit 15 - - - V. Assessment A reements 17 - - - W. Administration of the Taz Increment Financing District and Maintenance of the Taz Increment Account 17 - - _ X. Annual Disclosure Re uirements 18 _ _ _ Y. Assum tions 1 g _ _ _ Z. Munici al Findin s 1 g _ _ _ A-3-i Modification PART II -TAX INCREMENT PLAN Original Plan No. l Pae Pae A endig A: Ma - Redevelo meat Pro'ect Area "A" 23 - - - Appendig B: Property in the Taz Increment Redevelopment District "A-3" 25 A endix A-3-1 A endia C: Estimate of Taz Increments 26 - - - A endiz D: Taa Licrement Financin Bud et 27 - - - Appendia E: Estimate of Impacts on Other Tazing Jurisdictions 28 - - - A-3-ii Part L Modification No. 1 Tag Increment Financing Plan for Tag Increment Redevelopment District "A-3" D. Description of Property in the Tag Increment Financing District The property listed within Appendix B is the final list of property which was acquired for program purposes. See "Section F. Parcels in Acquisition" below for properties removed from the acquisition list due to unresponsiveness or undesire to further participate in the program. F. Parcels in Acquisition The properties listed below (formerly part of the Cycle III property list) have been identified for removal from the acquisition list and from TIF District "A-3"..The removal of this property is a program objective under Cycle IV of the Richfield Rediscovered Housing Program. This property maybe considered for program acquisition at some future date and incorporated back into the Richfield Rediscovered Program under a separate program modification. PROPERTY ADDRESS PID NUMBER 6900 -13th Ave. 26-028-24-43-0073 6321 -14th Ave. 26-028-24-12-0093 6435 - 15th Ave. 26-028-24-13-0043 6504 -15th Ave. 26-028-24-13-0076 6825 -Elliot Ave. 26-028-24-34-0085 7211 -Portland Ave. + 35-028-24-23-0002 6608 -Stevens Ave. 27-028-24-42-0073 +Double lot. A-3-1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A-3" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY* 7416 = 4th Ave. 34-028-24-41-0053 $ 680 6500 -14th Ave. 26-028-24-13-0132 $ 590 6404 -15th Ave. 26-028-24-13-0052 $ 470 7344 - B ant Ave. 33-028-24-14-0047 $ 560 6828 -Elliot Ave. 26-028-24-34-0135 $ 530 7525 -Girard Ave. 33-028-24-42-0094 $ 550 7537 -Girard Ave. 33-028-24-42-0091 $ 487 6625 -Stevens Ave. 27-028-24-42-0095 $ 490 *Original net tax capacity shown represents values of record for taxes payable in 1994, as stated in the 1994 plans. Appendix A-3-1 Taz Increment Financing Plan for Taz Increment Redevelopment District "A-4" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Taz Increment Financing Plan for Taz Increment Redevelopment District "A-4" PART I -TAX INCREMENT PLAN Page No. A. Statuto Authori A-4-1 B. Statement of Ob'ectives A-4-1 C. Develo ment Pro ram A-4-1 D. Descri tion of Pro a in the Taz Increment Financin District A-4-2 E. Classification of the Taz Increment Financin District A-4-2 F. Parcels in Ac uisition A-4-3 G. Estimate of Costs A-4-4 H. Estimated Amount of Obli ated Funds A-4-4 L Sources of Revenue A-4-4 J. Ori final Taz Ca aci A-4-5 K. Estimated Ca tured Taz Ca aci A-4-5 L. Duration of the District A-4-5 M. Estimated Im act on Other Tazin Jurisdictions A-4-5 N. Modifications of the Taz Increment Financin District A-4-6 O. Limitation on Administrative Ez enses A-4-6 P. Limitation on Duration of Taz Increment Financin Districts A-4-6 Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement A-4-6 R Limitation of the Use of Taz Increment A-4-7 S. Notification of Prior Planned Im rovements A-4-7 T. Ezcess Taz Increment A-4-7 U. Restrictions on Poolin ;Five Year Limit A-4-8 V. Assessment A reements A-4-9 W. Administration of the-Taz Increment Financing District and Maintenance of the Taz Increment Account ~ A-4-10 X. Annual Disclosure Re uirements A-4-10 Y. Assum tions A-4-11 Z. Munici al Findin s A-4-11 A-4-i PART I I -TAX INCREMENT PLAN Page No. A endig A: Ma - Redevelo ment Pro'ect Areas "A" and "B" A endix A-4-1 Appendix B: Property in the Tag Increment Redevelopment District "A-4" A endix A-4-3 A endix C: Estimate of Tag Increments A endix A-4-5 A endig D:~ Taa Increment Financin Bud et A endix A-4-6 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions A endix A-4-7 A-4-ri Part II. Tax Increment Financing Plan for Tax Increment Redevelopment District "A-4" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "A-4") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "A" (Project Area "A") for the Richfield Rediscovered Housing Program (Housing Program) and the activities proposed in the tax increment plan relating thereto is conferred upon the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA}, pursuant to and in accordance with the Tax Increment Financing Act, Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended. B. Statement of Objectives The HRA and the City continue to seek and affirm the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "A", dated July 16, 1990 as well as additional program objectives set forth in HRA Letter No. 13, dated Apri120, 1992. C. Development Program 1. Description of Development Activities As with previous cycles of the housing program and so with Cycle IV, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The HRA will assist prospective developers, builders, and buyers with development, redevelopment, new construction, and other related activities within the context of the modified Redevelopment Plan for Redevelopment Project Area "A", this Tax Increment Plan, and other related guidelines. 2. Development Activities Covered by Contract At this writing, early negotiations for property acquisition is proceeding between HRA staff and owners for one property. Early acquisition has akeady occurred on one property. Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon HRA Board and City Council approval. A-4-1 3. Other Develoument Not Under Contract Reasonably Eauected to Occur in the Pr_ oiect. Proposals from prospective developers, builders, and buyers will be required to be submitted to the HRA as part of the review process. The following activities may be expected to occur: 1. Property Acquisition; 2. On-site clearance; 3. On-site improvements; 4. New construction; 5. Remedial site environmental activities; and 6. Adjacent public improvements and utilities which service site. For Cycle IV of the Housing Program, a total of 71 properties have been identified for program participation and acquisition. Forty six (46) of the properties are located within Redevelopment Project Area "A" while the remaining 25 are within Redevelopment Project Area "B". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Areas A and B each contain one property with a double lot. Property subdivisions will be required for these lots in order to construct two homes on each site. Initial construction for Cycle IV is anticipated to begin in the summer of. Construction for each home is anticipated to be approximately 120 days. Timing of construction is contingent upon favorable market conditions, reasonable time period for processing applications and availability of funding revenue. D. Description of Property in the Taz Increment Financing District Property located within TIF District "A-4" is identified in Appendix B. E. Classification of the Taz Increment Financing District The Richfield HRA and City Council, in determining the need for a tax increment financing district in accordance with Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended, find that Tax Increment District "A-4" to be established within Project Area "A" is a redevelopment tax increment financing district as defined in Minn. Stat., Sec. 469.174, subd. 10. Since the tax increment parcels within the scattered site program are non-contiguous, each parcel has been examined by staff against the statutory definitions of structurally substandard and other blight definitions. Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. A-4-2 A detailed account of property examination for. eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle N" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division, for the duration of the tax increment district's life. F. Parcels in Acquisition The following property has been identified for acquisition in TIF District A-4, Cycle IV of the Housing Program: PROPERTY ADDRESS PID NUMBER 6345 -Bloomin ton Ave. 26-028-24-11-0025 6437 -Bloomin ton Ave. 26-028-24-14-0088 7429 - Du ont Ave. ~ 33-028-24-41-0076 7037 -Oakland Ave So. 35-028-24-22-0042 6629 -Portland Ave. 26-028-24-32-0045 7216 - 1st Ave.* 34-028-24-13-0094 6616 - 2nd Ave.* 27-028-24-42-0064 7241 - 2nd Ave. 34-028-24-13-0150 6812 -13th Ave. 26-028-24-43-0022 6237 -14th Ave. 26-028-24-12-0069 6349 -14th Ave. 26-028-24-12-0087 6438 - 15th Ave. 26-028-24-13-0061 6533 -15th Ave. 26-028-24-13-0108 6320 - 16th Ave. 26-028-24-11-0017 6400 - 16th Ave. 26-028-24-14-0076 7525 -Aldrich Ave So.* 33-028-24-41-0164 7537 -Emerson Ave So. 33-028-24-42-0132 6833 -Grand Ave So. 27-028-24-33-0070 7300 -Portland Ave So. 34-028-24-14-0015 7304 -Portland Ave. So. 34-028-24-14-0016 7520 -Portland Ave So.* 34-028-24-41-0021 6609 - 2nd Ave So. 27-028-24-42-0056 6914 - 13th Ave So. 26-028-24-43-0076 6329 - 14th Ave So. 26-028-24-12-0091 6408 -14th Ave So. 26-028-24-13-0117 6432 - 15th Ave So.* 26-028-24-13-0059 506 - E. 67th St. 27-028-24-41-0014 6507 -Bloomin ton Ave. 26-028-24-14-0116 6600 -Columbus Ave. 26-028-24-32-0004 7025 - Nicollet Ave.* 34-028-24-12-0022 6620 - 5th Ave. 27-028-24-41-0028 A-4-3 PROPERTY ADDRESS PID NUMBER 6915 -13th Ave. 26-028-24-43-0064 6326 -14th Ave. 26-028-24-12-0140 6928 -14th Ave. * 26-028-24-43-0069 6217 -15th Ave. 26-028-24-12-0058 6220 -15th Ave. 26-028-24-12-0060 6508 - Bloomin ton Ave 26-028-24-13-0097 7027 -Columbus Ave So. 35-028-24-22-0001 7329 -Girard Ave So. 33-028-24-13-0057 6816 -Pleasant Ave So. 27-028-24-33-0061 6820 -Pleasant Ave So. 27-028-24-33-0062 6820 -Portland Ave So.* 27-028-24-44-0006 7415 - 3rd Ave So. + 34-028-24-41-0088 6945 - .14th Ave So. 26-028-24-43-0013 6525 -15th Ave. So. 29-028-24-13-0110 6428 -16th Ave So. 26-028-24-14-0081 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. Early acquisition. The tax increment district budget includes acquisition costs for land sale subsidy which will be offered to eligible developers, builders, and buyers as development incentives. G. Estimate of Costs The estimate of public costs associated with the tax increment district are outlined in the budget listed in Appendix D. H. Estimated Amount of Obligated Funds At the current time, $750,000 of program revenue is anticipated to be alloted to Cycle IV in order to continue with the housing program. An estimate of the amount of bonded indebtedness for redevelopment is expected to be $0. The term of the issues is 0 years including 0 years of capitalized interest with an anticipated taxable interest rate of 0%. The amount of capitalized interest is estimated to be $0. I. Sources of Revenue The primary source of revenue to be used to finance public costs associated with proposed developments in the redevelopment project area is an allocation from the development account. A-4-4 In addition to this allocation, other sources of revenue potentially available to the HRA and City may be utilized. J. Original Tag Capacity Pursuant to Minn. Stat., Sec. 469.175, subd. 1 and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "A-4" is based on the January 2, 1994 assessed value placed on the property by the county assessor. The OTC for the district is $29,550. (See Appendix B, Property Located in Tax Increment Financing District "A-4".) Each year the office of the county auditor will measure the amount of increase or decrease in the total net tax capacity of the tax increment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total net tax capacity in the tax increment district above the original net tax capacity, a tax increment will be payable. In any year in which the total net tax capacity in the tax increment district declines below the original net tax capacity, no tax capacity will be captured and no tax increment will be payable. The county auditor shall certify in each year after the date the original net tax capacity was certified, the amount the OTC has increase or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; or 3. Change due to stipulations, adjustments, negotiated or court-ordered abatements. K. Estimated Captured Tag Capacity Pursuant to Minn. Stat., Sec. 469.175, Subd. 1 and Minn. Stat., Sec. 469.177, subd. 2, the estimated captured net tax capacity (CTC) of Tax Increment District "A-4" is within a range of $429 to $1,694 per home. The total CTC for the full build-out of 46 potential new homes to be located within Redevelopment Project Area "A" ranges from $19,734 to $77,924. As a result of the improvements to be constructed, it is expected that the estimated captured net tax capacity will be available for the housing program. It is also anticipated that this amount will be captured not more than 25 years. (See Appendix C, Estimate of Tax Increments.) L. Duration of the District Pursuant to Minn. Stat., Sect. 469.176, subd. 1, the maximum duration of a redevelopment tax increment district is 25 years. The HRA elects to capture 100% of the tax increments for the duration of the district. M. Estimated Impact on Other Taxing Jurisdictions Refer to Appendix E, Estimate of Impacts on Other Taxing Jurisdictions. A-4-5 N. Modifications of the Taz Increment Financing District All tax increment plan modifications will be processed in accordance with Minn. Stat., Sec. 469.175, subd. 4. The modifications pertaining to the necessary processing include any reduction or enlargement of the geographic area of the project or tax increment financing district; increase in amount of bonded indebtedness to be incurred, including a determination of capitalized interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; increase in the portion of the captured tax capacity to be retained by the HRA; increase in total estimated tax increment expenditures or designation of additional property to be acquired by the HRA shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment district may be reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity by the County Auditor. O. Limitation on Administrative Ezpenses In accordance with Minn. Stat., Sec. 469.174, subd. 14, and Minn. Stat., Sec. 469.176, subd. 3, for districts for which certification was requested after June 30, 1982, no tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Taz Increment Financing Districts .Pursuant to Minn. Stat., Sec. 469.176, subd. 1, the I-iRA must issue bonds, or acquire property, or construct or cause public improvements to be constructed within three years of the date of certification of the tax increment district my the county auditor. Q. Limitation on Qualification of Property in Taz Increment District Not Subject to Improvement Pursuant to Minn. Stat., Sec. 469.176, subdivision 6, "if, after four years from the date of certification of the original net tax capacity of the tax increment financing district..., no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the HRA 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 the tax increment financing district. If the HRA or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the HRA shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof most recently A-4-6 certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district." R Limitation of the Use of Taz Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minn. Stat., 469.001 to 469.047, inclusive, as amended. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. Pursuant to 1Vfinn. Stat., Sec. 469.176, subd. 4j, at least 90 percent of the revenues derived from tax increments from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of a redevelopment district under section 469.174. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority may be included in the qualifying costs. S. Notification of Prior Planned Improvements Pursuant to Minn. Stat., Sec. 469.177, subd. 4, the HRA will review and search property files for properties to be included in the tax increment district and to identify those properties for which building permits have been issued during the 18 months immediately proceeding approval of the tax increment financing plan by the City. T. Ezcess Taz Increments Pursuant to Minn. Stat., Sec. 469.176, subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minn. Stat., Sec. 475.61, subd. 3, the HRA shall use the excess amount to: 1. Prepay the outstanding bonds; 2. Discharge the pledge of tax increment therefor; 3. Pay into an escrow account dedicated to the payment of such bond; 4. Repay any loans including interest on these loans; or 5. Return the excess to the county auditor for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rates. A-4-7 The amounts distributed to a city or county must be deducted from the levy limits of the governmental unit for the following year. In calculating the levy limit base for later years, the amount deducted must be treated as a local government aid payment. For the purpose of this tax increment financing plan, excess tax increment means that increment received in any year which is in addition to the amount needed to satisfy the I3RA's current financial obligations or commitments, as specified in the- tax increment financing budget listed in Appendix D, or which is in addition to that which is placed in a separate account for the purpose of accumulating funds needed to satisfy those financial obligations or commitments in the future. U. Restrictions on Pooling; Five-Year Limit given: In accordance with Minn. Stat., Sec. 469.1763, .the following terms have the meanings "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues maybe spent for such purposes under other law. Activities do not include allocated administrative expenses, but do include engineering, architectural, and similar costs of the improvements in the district. "Third Party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the municipality or the development authority or other person substantially under the control of the municipality. district: Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect to expenditures outside the (a) For each tax increment financing district, an amount equal to at least 75 percent of the revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of the revenue derived from tax increments paid by properties in the district may be expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic area of the project except to pay, or secure payment of, debt service on credit enhanced bonds. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), maybe deducted first before calculating the percentages that must be expended within and without the district. A-4-8 Pursuant to Minn. Stat., Sec. 469.173, subd. 3 with respect to the five-year rule: (a) Revenues derived from tax increments are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs: (1) before or within five years after certification of the district, the revenues are actually paid to a third party with respect to the activity; (2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification and the revenues are spent to repay the bonds; (3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation; or (4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs. (b) For purposes of this subdivision, bonds include subsequent refunding bonds if one of two tests is met: (1) the proceeds of the original refunded bonds were spent on activities within five years after the district was certified or (2) the original refunded bonds are issued within five years after the district was certified and the proceeds are expended on activities within a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code. Pursuant to Minn. Stat., Sec. 469.173, subd. 4 with respect to use of revenues for decertification: Beginning with the sixth year following certification of the district, 75 percent of the revenues derived from tax increments paid by properties in the district that remain after the expenditures permitted under subdivision 3 must be used only to pay outstanding bonds, as defined in subdivision 3, paragraph (a), clause (2), and paragraph (b) or contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4). When the outstanding bonds have been defeased and when sufficient money has been set aside to pay contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and (4), the district must be decertified and the pledge of tax increment discharged. V. Assessment Agreements Pursuant to Minn. Stat., Sec. 469.177, subd. 8, the HRA may enter into an agreement in recordable form with a developer or redeveloper of property within the tax increment district which establishes a minimum market value of the tax increment district. The assessment A-4-9 agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the mazket value previously assigned to the land upon which the improvements aze to be constructed and so long as the minimum market value contained in the assessment agreement appeazs in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tag Increment District and Maintenance of the Tag Increment Account Administration of the tax increment district will be the responsibility of the Richfield Housing and Redevelopment Authority. The tax increment received as a result of increases in the net tax capacity of the tax increment district will be maintained in a special account separate from all other HRA and municipal accounts and expended only upon sanctioned activities identified in the tax increment financing plan. X. Annual Disclosure Requirements Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before Mazch 1 of each yeaz, the I3RA must annually report to the commissioner of revenue the following: 1. Total principal amount of nondefeased tax increment financing bonds that aze outstanding at the end of the previous calendaz year; and 2. Total annual amount of principal and interest payments that are due for the current calendar yeaz on (i) general obligation tax increment financing bonds, and (ii) other tax increment financing bonds. Also in accordance with this requirement the HRA must annually report to the commissioner of revenue the following amounts for the tax increment financing district: 1. Type of district; 2. Date on which the district is required to be decertified; 3. Captured net tax capacity of the district, by property class as specified by the commissioner of revenue, for taxes payable in the current calendaz yeaz; __ 4. Tax increment revenues for taxes payable in the current calendaz yeaz; 5. Whether the tax increment financing plan or other governing document permits - increment revenues to be expended (i) to pay bonds, the proceeds of which were or maybe expended on activities located outside of the district, (ii) for deposit into a common fund from which money maybe expended on activities located outside of the A-4-10 district, or (iii) to otherwise finance activities located outside of the tax increment financing district; and 6. Any additional information that the commissioner of revenue may require. Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment•financing district. These assumptions are based on discussions with the HRA, City, and County staff, and consultants. Z. Municipal Findings Pursuant to Minn. Stat., Sec: 469.175, subd. 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: The Tax Increment Financing District is a redevelopment district pursuant to Minn. Stat., Sec. 469.174, subd. 10. It has been determined that parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities or other improvements and more than 50. percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. Specifically, staff has examined each parcel against the statutory definitions of structurally substandard and other blight definitions due to the non-contiguous nature of the tax increment parcels. Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. A detailed account of property examination for eligibility are enumerated within a document entitled Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle IV" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division ,for the duration of the tax increment district's life. 2. The proposed activities listed in this plan, in the opinion of the HRA, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Therefore, the use of tax increment financing is deemed necessary since the proposed development requires certain necessary planning, property assembly and other improvements without which interested developers, builders, or buyers could not construct the aforementioned improvements; and without the use of tax increments or other revenues authorized by this plan to assist with the financing of the activities, interested developers, builders, or buyers would not proceed with redevelopment in the redevelopment project area. 3. The tax increment financing plan conforms to the general plan for the development of the City as a whole as it will result in the continuation of the Richfield Rediscovered Housing Program for the development, redevelopment, new construction and other A-4-11 related improvements of residential homes for which there is limited sources of revenue available. 4. The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the HRA to provide the necessary redevelopment for the project area and City, as a whole, in a planning manner suitable to both the public and private sectors. A-4-12 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "A" AND TAX INCREMENT FINANCING DISTRICT "A-4" APPENDIX A REDEVELOPMENT PROJECT AREAS "A" AND "B" Appendix A-4-1 N N N 1~II nl m a ~n b ~O N N D,£Z I ~ II ~~ HSIONtl15 PII ZZ ~- Is 1Z C_ 4102 4161 MOll3d9NOl i~ 3Atl aV03] `~"'T~ 1!_- 41 81 ~ 41 L1 4191 ~ -' N019NIWOOlB -- 41 SI 41 b1 ~~1I~ 41 £1 ~C 41 21 41 I1 I 4101 II LOIll3 '~ 09tl OIHO II snewnloJ ~ Natld I I O NV lXVO ' ~ II 3AV ONtlllaOd IS 41S I I 41b NO1NIlJ ~ C DBE DIIZ I C SN3A315 Isl ----~~ '3AV 1311OO1N ~ „3061V,6 I,~ CC I HLaOM1N3M i; ^~ AanBSTld LNVSV3ld 1~ -'-- -'- 11 - ONtla9 II i3laatlH II I ~ - I al3ldatlo ~~ I 3AV 3lVONAI I~~ HJlaaltl ~II ~- I` 1NVAa8 I'I ~~- xtldloa ; ~[ 1NOdn0 II '\\ NOSa3W3 ~ \\~. ` 1NOW3ad ~~ aatlalo I ~~ loloewnH , ~~ oNlnal ~ ~~ s3wtlr J xONX i_~ N tl'JOl ; ._ Ntl OaOW NO1M3N ~ =~~ a3All0 II I ~I 3Atl NN3d N33n0 I 1135Sna ~V/I~-- -J NVOla3HS i ~ --- -- ~ ~I stlwoHl ' f ----_ ~~ NOldn '~` ~' 1N3JNIA l ~-- -~I NanBHStlM ,111~I II 3nv 53xa3x - _ ~ V1 IA 2 c ~ ~D ~0 I ~i. . 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A~ ~ ~ ~ _ LL WZ ~ >' ~ U ~ Zz ~ Va _W n 1~il N N 1~il ai Z Z C W ': rte- ~ n tim S a -_-_-__.~~Q_,_______ MO113d9N01 - ~;~ I 3AV aV030 I__J ~ -- 41 B I II-JI ` C: ~~ ---- 1 VI LI 1' ~~ JI' 4191 ~,~1^ 11 N019NIWOOIB ~~~ II~ VI SI I('~/I 11 41 bl 0~~~/ ~~ VI £1 U~~ il~ 4121 OO~ li1 41 II ~~~ III lOlll3 uc~~ _ ;II ~~~ ;III O9VOIH0 ~~O II snewnlo0 ~~~ II II Xatld -. ~ - L.lll ONV lXVO ~~~ ~ i i V SV ONVllaOd I~ VI b I ~~ f -- NO1 NIl7 __ D,£ ~~ r~ DI'2 ~~I C~ ) SN3A31S 1^' 1 3AV 1311O~IN ~L_ ~J ~~ 1130S1V18 (~'~~ NLaOM1N3M 1_.-__~~~ AanBSllid ---- -1_-..1._ r------f: 1 LNVSV3ld II ONtlaO ---._~~ r- 1 131aatlH c ~~ J II Ol31daV0 C] / i, '3nV 3lVONAI ~® ~ HOIaOItl ~L- C~ - ~ 1NtlAae ~ C~r~ ~ Xtld,UJ ~C C]I ~II 1NOdn0 '- III NOSa3W3 ~~ % LNOW3ad ~ i' aatlalo r ___--_ ~ laloewnH ~~~ \ ~~ 9N1na1 s3war _ _ n_ - \'~ XONX 7 NVOOI C_ 7~1t.._._.__ ~ Ntl9aOW _~ ~LJ ~I NO1M3N ~~~ ~ a3All0 3AV NN3d ~~~ II N33n0 1 ~ I ll3ssna I NVOIa3HS .- JL - ~ ~ stlwollt NOldn --.~~-~ ~' ~~ I LN30NIA mil; -"-"~~"'..- ~~,.~ NanBHSVM _ I ~r~ -_-~~-~ 3AV 53Xa3X N N N NQ O v h b n m - r r r Pa z7A Qi Qi Qi Qi H U W ti a A PG W U H A a a W H f~ I x U H u'1 t!l N N N 41 ~~/1 N VI N Y~1 IF/1 N t0 tD ID N ~ ~ I- h 1~ r r APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A-4" PROPERTY ADDRESS ' PID NUMBER ORIGINAL NET TAX CAPACITY** 6345 -Bloomin ton Ave. ~ 26-028-24-11-0025 $ 550 6437 -Bloomin ton Ave. 26-028-24-14-0088 $ 520 7429 - Du ont Ave. ~' 33-028-24-41-0076 $ 540 7037 -Oakland Ave So. 35-028-24-22-0042 $ 660 6629 -Portland Ave. 26-028-24-32-0045 $ 590 7216 -1st Ave.* 34-028-24-13-0094 $1,265 6616 - 2nd Ave." 27-028-24-42-0064 $ 530 7241 - 2nd Ave. 34-028-24-13-0150 $ 490 6812 -13th Ave. 26-028-24-43-0022 $ 570 6237 - 14th Ave. 26-028-24-12-0069 $ 580 6349 - 14th Ave. 26-028-24-12-0087 $ 580 6438 - 15th Ave. 26-028-24-13-0061 $ 590 6533 - 15th Ave. 26-028-24-13-0108 $ 1,242 6320 - 16th Ave. 26-028-24-11-0017 $ 1, 380 6400 - 16th Ave. 26-028-24-14-0076 $ 550 7525 -Aldrich Ave So." 33-028-24-41-0164 $ 590 7537 -Emerson Ave So. 33-028-24-42-0132 $ 580 6833 -Grand Ave So. 27-028-24-33-0070 $ 430 7300 -Portland Ave So. 34-028-24-14-0015 $ 560 7304 -Portland Ave. So. 34-028-24-14-0016 $ 560 7520 -Portland Ave So." 34-028-24-41-0021 $ 350 6609 - 2nd Ave So. 27-028-24-42-0056 $ 580 6914 - 13th Ave So. 26-028-24-43-0076 $ 550 6329 -14th Ave So. 26-028-24-12-0091 $ 490 6408 -14th Ave So. 26-028-24-13-0117 $ 570 6432 - 15th Ave So.* 26-028-24-13-0059 $ 530 506 - 67th St. E. 27-028-24-41-0014 $ 550 6507 -Bloomin ton Ave. 26-028-24-14-0116 $ 580 6600 -Columbus Ave. 26-028-24-32-0004 $ 1,725 7025 - Nicollet Ave.* 34-028-24-12-0022 $ 989 6620 - 5th Ave. 27-028-24-41-0028 $ 560 6915 - 13th Ave. 26-028-24-43-0064 $ 480 6326 -14th Ave. 26-028-24-12-014.0 $ 470 Appendix A-4-3 PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY* 6928 -14th Ave. * 26-028-24-43-0069 $ 500 6220 -15th Ave. 26-028-24-12-0060 $ 519 6508 - Bloomin ton Ave 26-028-24-13-0097 $ 630 7027 -Columbus Ave So. 35-028-24-22-0001 $ 610 7329 -Girard Ave So. 33-028-24-13-0057 $ 690 6816 -Pleasant Ave So. 27-028-24-33-0061 $ 470 6820 -Pleasant Ave So. 27-028-24-33-0062 $ 650 6820 -Portland Ave So.'` 27-028-24-44-0006 $ 630 7415 - 3rd Ave So.' 34-028-24-41-0088 $ 680 6945 -14th Ave So. 26-028-24-43-0013 $ 640 6525 - 15th Ave. So. 29-028-24-13-0110 $ 600 6428 -16th Ave So. 26-028-24-14-0081 $ 600 * Property moved from Cycle III acquisition list to the Cycle IV acquisition list. **Original tax capacity for taxes assessed in 1994 and payable in 1995. +Double lot. Appendix A-4-4 APPENDIX C ESTIlVIATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "A-4" Tax Increment Estimates and Calculations Lower Limit of Range (Per Home) Upper Limit of Range (Per Home) Construction Cost and and Buildin $ 92,000 $160,000 x Sales Ratio 93% 93% Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class 1 A; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance $ 720 $ 271 $ 720 $ 1,536 New Taz Ca aci $ 991 $ 2,256 - Ori 'nal Net Tax Ca aci Av . * $ 562 $ .562 Ca tured Net Taz Ca aci $ 429 $ 1,694 x Tax Capacity (Extension) Rate Taxes Pa able in 1995 .140.669% 140.669% Annual Taz Increment $ 603 $ 2,383 x Number of Potential New Pro am Homes 46 46 Total Gross Annual Taz Increment** $ 27,738 $109,618 *Assumes non-homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. Estimate ofAd Valorem Lower Limit of Range Upper-Limit of Range Pro er Taxes (Per Home) (Per Home) Construction Cost Land and Buildin $ 92,000. $160,000 Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class 1 A; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value $ 720 $ 720 2.00% of the balance $ 271 $ 1,536 New Taz Ca aci $ 991 $ 2,256 x Tax Capacity (Extension) Rate Taxes Pa able in 1994 140.669% 140.669% Annual Ad Valorem Pro a Tazes $ 1,394 $ 3,173 x Number of Potential New Pro am Homes 46 46 Gross Total Annual Ad Valorem Pro a Tazes $ 64,124 $145,958 Appendix- A-4-5 APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "A-4" Line Item Per Pro Gross Amount* Pro e A uisition $52,000 $ 2,392,000 A sisals $ 350 $ 16,100 Demolition/Site Clearance $ 6,000 $ 276,000 Le al Ex enses $ 1,000 $ 46,000 Total $59,350 $ 2,730,100 *This budget assumes potential acquisition of x1148 Cycle IV properties located within Tax Increment Financing District "A-4". Note that program revenue allocation of $750,000 allows for the acquisition of 13 properties on average. Appendix A-4-6 APPENDIX E ESTIlVIATE OF IlVIPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "A-4" The purpose of analyzing impacts on taxing jurisdictions is to (a.) determine how tax increment assistance provided to a proposed redevelopment project impacts taxing jurisdictions; (b.) determine the level of impact as it relates to tax base; and (c.) determine the amount of taxes a taxing entity would need to levy in order to increase their respective tax base by the amount the project brings in absent the project. If the "But For" test were not met, construction would not occur. That is, without the creation and existence of the tax increment district, construction would not occur because the cost of developing the proposed project by a private developer would be prohibitive. Acceptable rates of return on project investment could not be met and risk would be too high. Development would not move forward. Construction would not occur without the. assistance of the city. In light of this, the impact to taxing jurisdictions would be $0. Foregone would be the benefits of a new construction project, increased overall tax base, and other project objectives. The estimated impact of Tax Increment District "A-4" would be as follows if the project were built without tax increment financing: IMPACT ON TAX BASE Range of Captured Entity's Total Range of Captured Net Tag Capacity Tagin Enti Net Tag Ca aci Net Tag Ca aci to Enti Total Cit of Richfield 21,056,158 19,734 - 77,924 0.094 - 0.370 Henne in Count 966,907,816 19,734 - 77,924 0.002 - 0.008 School District 280 21,056,158- 19,734 - 77,924 0.094 - 0.370 The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix A-4-7 IMPACT ON TAX RATES Tazing Entity Current Taz Rate Range of Captured Taz Ca aci Potential Tazes Ci of Richfield 26.626 19,734 - 77,924 $ 5,254 - 20,748 Henne in Coun 37.454 19,734 - 77,924 $ 7,391 - 29,186 School District 280 67.327 19,734 - 77,924 $13,286 - 52,464 Other 6.357 19,734 - 77,924 $ 1,254 - 4,954 Total 140.669 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A-4-8 The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "B" Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B-3" Tax Increment Financing Plan for Tax Increment Redevelopment District "B-4" All Related to the Richfield Rediscovered Housing Program Dated: May 15, 1995 Prepared By: The City of Richfield. Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, NIN 55423 (612) 861-9760 Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "B" TABLE OF CONTENTS Part L Richfield Rediscovered Housing Program Modification No. 4 Redevelopment Plan for Redevelopment Project Area "B" PART I -REDEVELOPMENT PLAN Original Plan Pa a Modification No. 4 Pa e A. Statement of Public Pu ose 33 - - - B. Statuto Authori 33 - - _ C. Descri tion of Redevelo ment Project Area 34 - - - D. Statement of Goals and Ob'ectives 35 - - - E. Develo went Activities and A reements 36 - - - F. Pro osed Land Use 38 _ _ _ G. Ac uisition and Relocation Activities 38 B-1 H. Environmental Considerations 39 - - - I. Redevelo ment Plan Modification 39 - - - J. Administration of Redevelo ment Project 39 _ _ _ B-i Part I. Modification No. 4 Redevelopment Plan for Redevelopment Project Area "B" G. Acquisition and Relocation Activities 1. Acquisition In fixrthereance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in prevous years to identify property for acquisition. In its sequential numbering system, this is Cycle IV in the housing program. As in the past, residential property owners were contacted and surveyed to determine (a.) whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional means of obtaining candidate properties were made by (a.) property owners contacting the HRA requesting that their property be considered for the program and (b.) referrals by the city's health and inspections department. Candidate properties were further evaluated for program eligibility and inspected. The following properties are identified for acquisition under Cycle IV of the program: PROPERTY ADDRESS PID NUMBER 6318 -Knox Ave. ~+ 28-028-24-21-0107 6421 -Girard Ave. 28-028-24-13-0008 6929 -Queen Ave. 29-028-24-44-0171 2819 - W. 701 /2 St. ~+ 32-028-24-12-0068 6305 -Girard Ave So. 28-028-24-12-0027 6813 -Russell Ave So. 29-028-24-44-0038 6736 - U ton Ave So. 29-028-24-42-0132 6300 -Aldrich Ave.* 28-028-24-11-0041 7432 -Aldrich Ave. 33-028-24-41-0026 6320 -Girard Ave So. 28-028-24-12-0033 6440 -Humboldt Ave So.* 28-028-24-24-0009 6306 -Irvin Ave So. 28-028-24-21-0126 6310 -Irvin Ave So. 28-028-24-21-0075 6645 -Knox Ave So. 28-028-24-31-0032 6601 - Lo an Ave So. 28-028-24-31-0061 6539 -Oliver Ave So.* 28-028-24-23-0092 6824 -Queen Ave So." 29-028-24-44-0024 6825 -Queen Ave So. 29-028-24-44-0008 6913 -Queen Ave So. 29-028-24-44-0175 B-1 PROPERTY ADDRESS PID NUMBER 6933 -Queen Ave So.* 29-028-24-44-0170 2916 - W. 71 1 /2 St. 32-028-24-12-0072 1908 - W. 66th St. 28-028-24-23-0125 6845 -Newton Ave. 28-028-24-33-0018 6320 -Oliver Ave. 28-028-24-22-0122 7332 - U ton Ave. + 32-028-24-13-0059 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. "Early acquisition. Under Cycle IV, the property listed in the following table (formerly part of the Cycle III property list) is hereby removed from the acquisition list for Redevelopment Project Area B. This property may be considered for future program acquisition. (Also note that this property is identified for removal from the list of properties for Tax Increment District "B-3 "). PROPERTY ADDRESS PID NUMBER 7015 -Penn Ave. 33-028-24-22-0003 7021 -Penn Ave. 33-028-24-22-0004 B-2 .Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B-3" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Modification No. l Tag Increment Financing Plan for Tag Increment Redevelopment District "B-3" PART I -TAX INCREMENT PLAN Original Plan Pae Modification No. 1 Pae A. Statuto Authori ~ - - - B. Statement of Ob'ectives ~ - - - C. Develo went Pro ram ~ - - - D. Description of Property in the Tag Increment Financin District 9 B-3-1 E. Classification of the Tag Increment Financin District 9 - - - F. Parcels in Ac uisition 10 B-3-1 G. Estimate of Costs 10 - - - H. Estimated Amount of Obli ated Funds 10 - - - L Sources of Revenue 11 - - - J. Ori final Tag Ca aci 11 - - - K. Estimated Ca tared Tag Ca aci 12 - - - L. Duration of the District 12 - - - M. Estimated Im act on Other Tagin Jurisdictions 12 - - - N. Modifications of the Tag Increment Financin District 12 - - - O. Limitation on Administrative Eg enses 12 - - - P. Limitation on Duration of Tag Increment Financing Districts 13 - - - Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement 13 - - - R. Limitation of the Use of Tag Increment 13 - - - S. Notification of Prior Planned Ln rovements 14 - - - T. Excess Tag Increment 14 - - - U. Restrictions on Poolin ;Five Year Limit 15 - - - V. Assessment A reements ~ 16 - - - W. Administration of the Tag Increment Financing District and Maintenance of the Tag Increment Account 17 - - - X. Annual Disclosure Re uirements 17 - - - Y. Assam tions 18 - - - Z. Munici al Findin s 18 - - - B-3-i Modification PART II -TAX INCREMENT PLAN Original Plan No. 1 Pa a Pa e A endig A: Ma - Redevelo ment Pro'ect Area "B" 23 - - - Appendig B: Property in the Tag Increment Redevelopment District "B-3" 25 A endix B-3-1 A endig C: Estimate of Tag Increments 26 - - - A endig D: Tag Increment Financin Bud et 27 _ _ _ Appendix E: Estimate of Impacts on Other Taxing Jurisdictions 28 _ _ _ B-3-ii Part L Modification No. 1 Taz Increment Financing Plan for Taa Increment Redevelopment District "B-3" D. Description of Property in the Taz Increment Financing District The property listed within Appendix B is the final list of property which was acquired for program purposes. See "Section F. Parcels in Acquisition" below for properties removed from the acquisition list due to unresponsiveness or undesire to further participate in the program. F. Parcels in Acquisition The properties listed below (formerly part of the Cycle III property list) have been identified for removal from the acquisition list and from TIF District "B-3". The removal of this property is a program objective under Cycle IV of the Richfield Rediscovered Housing Program. This property maybe considered for program acquisition at some future date and incorporated back into the Richfield Rediscovered Program under a separate program modification. PROPERTY ADDRESS PID NUMBER 7015 -Penn Ave. 33-028-24-22-0003 7021- Penn Ave. 33-028-24-44-0004 B-3-1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-3" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY* 6404 = Humboldt Ave. 28-028-24-24-0002 $ 660 6821 - Lo an Ave. 28-028-24-34-0050 $ 580 6236 -Pleasant Ave. 27-028-24-22-0056 $ 600 6645 - U ton Ave. 29-028-24-42-0015 $ 1,219 *Original net tax capacity shown represents values of record for taxes payable in 1994, as stated in the 1994 plans. Appendix B-3-1 Taz Increment Financing Plan for Taz Increment Redevelopment District "B-4" TABLE OF CONTENTS Part IL Richfield Rediscovered Housing Program Tax Increment Financing Plan for Tax Increment Redevelopment District "B-4" PART I -TAX INCREMENT PLAN Page No. A. Statuto Authori B-4-1 B. Statement of Ob'ectives B-4-1 C. Develo ment Pro ram B-4-1 D. Descri tion of Pro a in the Tax Increment Financin District B-4-2 E. Classification of the Tax Increment Financin District B-4-2 F. Parcels in Ac uisition B-4-3 G. Estimate of Costs B-4-4 H. Estimated Amount of Obli ated Funds B-4-4 I. Sources of Revenue B-4-4 J. Ori final Tax Ca aci B-4-4 K. Estimated Ca tured Tax Ca aci B-4-4 L. Duration of the District B-4-5 M. Estimated Im act on Other Taxin Jurisdictions B-4-5 N. Modifications of the Tax Increment Financin District B-4-5 O. Limitation on Administrative Ex enses B-4-5 P. Limitation on Duration of Tax Increment Financin Districts B-4-5 Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement B-4-6 R Limitation of the Use of Tax Increment B-4-6 S. Notification of Prior Planned Im rovements B-4-6 T. Excess Tax Increment B-4-7 U. Restrictions on Poolin ;Five Year Limit B-4-7 V. Assessment A reements B-4-9 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account B-4-9 X. Annual Disclosure Re uirements B-4-9 Y. Assum tions B-4-10 Z. Munici al Findin s B-4-10 B-4-i PART I -TAX INCREMENT PLAN Page No. A endiz A: Ma - Redevelo ment Pro'ect Areas "A" and "B" A endix B-4-1 Appendiz B: Property in the Taz Increment Redevelopment District "B-4" A endix B-4-3 A endiz C: Estimate of Taz Increments A endix B-4-4 A endiz D: Taz Increment Financin Bud et A endix B-4-5 Appendiz E: Estimate of Impacts on Other Tazing Jurisdictions A endix B-4-6 B-4-ii Part II. Taz Increment Financing Plan for Taa Increment Redevelopment District "B-4" A. Statutory. Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "B-4") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "B" (Project Area "B") for the Richfield Rediscovered Housing Program (Housing Program) and the activities proposed in the tax increment plan relating thereto is conferred upon the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), pursuant to and in accordance with the Tax Increment Financing Act, Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended. B. Statement of Objectives The HRA and the City continue to seek and affirm the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "B", dated July 16, 1990 as well as additional program objectives set forth in HRA Letter No. 13, dated Apri120, 1992. C. Development Program 1. Description of Development Activities As with previous cycles of the housing program and so with Cycle IV, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The HRA will assist prospective developers, builders, and buyers with development, redevelopment, new construction, and other related activities within the context of the modified Redevelopment Plan for Redevelopment Project Area "B", this Tax Increment Plan, and other related guidelines. 2. Development Activities Covered by Contract At this writing, there are no early negotiations for property acquisitions proceeding between HRA staff and owners for one property. Early acquisitions have already occurred on two properties. Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon HRA Board and City Council approval. B-4-1 3. Other Develoument Not:Under Contract Reasonably Egaected to Occur in the Proi ect• Proposals from prospective developers, builders, and buyers will be required to be submitted to the HRA as part of the review process. The following activities may be expected to occur: 1. Property Acquisition; 2. On-site clearance; 3. On-site improvements; 4. New construction; 5. Remedial site environmental activities; and 6. Adjacent public improvements and utilities which service site. For Cycle IV of the Housing Program, a total of 73 properties have been identified for program participation and acquisition. Forty six (46) of the properties are located within Redevelopment Project Area "A" while the remaining 25 are within Redevelopment Project Area "B". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Areas A and B each contain one property with a double lot. Property subdivisions will be required for these lots in order to construct two homes on each site. Initial construction for Cycle IV is anticipated to begin in the summer of. Construction for each home is anticipated to be approximately 120 days. Timing of construction is contingent upon favorable market conditions, reasonable time period for processing applications and availability of funding revenue. D. Description of Property in the Tag Increment Financing District Property located within TIF District "B-4" is identified in Appendix B. E. Classification of the Tag Increment Financing District The Richfield HRA and City Council, in determining the need for a tax increment financing district in accordance with Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended, find that Tax Increment District "B-4" to be established within Project Area "B" is a redevelopment tax increment financing district as defined in 1Vfinn. Stat., Sec. 469.174, subd. 10. Since the tax increment parcels within the scattered site program are non-contiguous, each parcel has been examined by staff against the statutory definitions of structurally substandard and other blight definitions. Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. B-4-2 A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle IV" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division, for the duration of the tax increment district's life. F. Parcels in Acquisition The following property has been identified for acquisition in TIF District B-4, Cycle N of the Housing Program: PROPERTY ADDRESS PID NUMBER 6318 -Knox Ave. ~" 28-028-24-21-0107 6421 -Girard Ave. 28-028-24-13-0008 6929 -Queen Ave. 29-028-24-44-0171 2819 - W. 70 1 /2 St. ~" 32-028-24-12-0068 6305 -Girard Ave So. 28-028-24-12-0027 6813 -Russell Ave So. 29-028-24-44-0038 6736 - U ton Ave So. 29-028-24-42-0132 6300 -Aldrich Ave.* 28-028-24-11-0041 7432 -Aldrich Ave. 33-028-24-41-0026 6320 -Girard Ave So. 28-028-24-12-0033 6440 -Humboldt Ave So.* 28-028-24-24-0009 6306 -Irvin Ave So. 28-028-24-21-0126 6310 -Irvin Ave So. 28-028-24-21-0075 6645 -Knox Ave So. 28-028-24-31-0032 6601 - Lo an Ave So. 28-028-24-31-0061 6539 -Oliver Ave So.* 28-028-24-23-0092 6824 -Queen Ave So.* 29-028-24-44-0024 6825 -Queen Ave So. 29-028-24-44-0008 6913 -Queen Ave So. 29-028-24-44-0175 6933 -Queen Ave So.* 29-028-24-44-0170 2916 - W. 71 1 /2 St. * 32-028-24-12-0072 1908 - W. 66th St.* 28-028-24-23-0125 6845 -Newton Ave. 28-028-24-33-0018 6320 -Oliver Ave. 28-028-24-22-0122 7332 - U ton Ave. + 32-028-24-13-0059 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. Early acquisition. The tax increment district budget includes acquisition costs for land sale subsidy which will be offered to eligible developers, builders, and buyers as development incentives. B-4-3 G. Estimate of Costs The estimate of public costs associated with the tax increment district are outlined in the budget listed in Appendix D. H. Estimated Amount of Obligated Funds At the current time, $750,000 of program revenue is anticipated to be alloted to Cycle IV in order to continue with the housing prQg xlness for redevelopment is expected to be An estimate of the amount of bonded indeht~ $0. The term of the issues is 0 years including 0 years of capitalized interest with an anticipated taxable interest rate of 0%. The amount of capitalized interest is estimated to be $0. L Sources of Revenue The primary source of revenue to be used to finance public costs associated with proposed developments in the redevelopment project area is an allocation from the development account. In addition to this allocation, other sources of revenue potentially available to the HRA and City maybe utilized. J. Original Tag Capacity Pursuant to Minn. Stat., .Sec. 469.175, subd. 1 and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "B-4" is based on the January 2, 1994 assessed value placed on the property by the county assessor. The OTC for the district is $17,126. (See Appendix B, Property Located in Tax Increment Financing District "B-4".) Each year the office of the county auditor will measure the amount of increase or decrease in the total net tax capacity of the tax increment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total net tax capacity in the tax increment district above the original net tax capacity, a tax increment will be payable. In any year in which the total net tax capacity in the tax increment district declines below the original net tax capacity, no tax capacity will be captured and no tax increment will be payable. The county auditor shall certify in each year after the date the original net tax capacity was certified, the amount the OTC has increase or decreased as a result of• 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; or 3. Change due to stipulations, adjustments, negotiated or court-ordered abatements. K Estimated Captured Tag Capacity Pursuant to Minn. Stat., Sec. 469.175, Subd. 1 and Minn. Stat., Sec. 469.177, subd. 2, the estimated captured net tax capacity (CTC) of Tax Increment District "B-4" is within a range of B-4-4 $395 to $1,660 per home. The total CTC for the full build-out of 25 potential new homes to be located within Redevelopment Project Area "B" ranges from $9,875 to $41,500. As a result of the improvements to be constructed, it is expected that the estimated captured net tax capacity will be available for the housing program. It is also anticipated that this. amount will be captured not more than 25 years. (See Appendix C, Estimate of Tax Increments.) L. Duration of the District Pursuant to Minn. Stat., Sect. 469.176, subd. 1, the maximum duration. of a redevelopment tax increment district is 25 years. The HRA elects to capture 100% of the tax increments for the duration of the district. M. Estimated Impact on Other Taxing Jurisdictions Refer to Appendix E, Estimate of Impacts on Other Taxing Jurisdictions. N. Modifications of the Taz Increment Financing District All tax increment plan modifications will be processed in accordance with Minn. Stat., Sec. 469.175, subd. 4. The modifications pertaining to the .necessary processing include any reduction or enlargement of the geographic area of the project or tax increment financing district; increase in amount of bonded indebtedness to be incurred, including a determination of capitalized interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; increase in the portion of the captured tax capacity to be retained by the HRA; increase in total estimated tax increment expenditures or designation of additional property to be acquired by the HRA shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment district maybe reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity by the County Auditor. O. Limitation on Administrative Ezpenses In accordance with Minn. Stat., Sec. 469.174, subd. 14, and Minn. Stat., Sec. 469.176, subd. 3, for districts for which certification was requested after June 30, 1982, no tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total. tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Taz Increment Financing Districts Pursuant to Minn. Stat., Sec. 469.176, subd. 1, the HRA must issue bonds, or acquire property, or construct or cause public improvements to be constructed within three years of the date of certification of the tax increment district my the county auditor. B-4-5 Q. Limitation on Qualification of Property in Taz Increment District Not Subject to Improvement Pursuant to Minn. Stat., Sec. 469.176, subdivision 6, "if, after four years from the date of certification of the original net tax capacity of the tax increment financing district..., no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the I-IRA or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment maybe taken from that parcel, and the original net tax capacity of the tax increment financing district. If the HRA or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the HRA shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district." R Limitation of the Use of Taz Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minn. Stat., 469.001 to 469.047, inclusive, as amended. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. Pursuant to Minn. Stat., Sec. 469.176, subd. 4j, at least 90 percent of the revenues derived from tax increments from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of a redevelopment district under section 469.174. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority may be included in the qualifying costs. S. Notification of Prior Planned Improvements Pursuant to Minn. Stat., Sec. 469.177, subd. 4, the HRA will review and search property files for properties to be included in the tax increment district and to identify those properties for B-4-6 which building permits have been issued during the 18 months immediately proceeding approval of the tax increment financing plan by the City. T. Excess Taz Increments Pursuant to Minn. Stat., Sec. 469.176, .subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minn. Stat., Sec. 475.61, subd. 3, the HRA shall use the excess amount to: 1. Prepay the outstanding bonds; 2. Discharge the pledge of tax increment therefor; 3. Pay into an escrow account dedicated to the payment of such bond; 4. Repay any loans including interest on these loans; or 5. Return the excess to the county auditor for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rates. The amounts distributed to a.city or county must be deducted from the levy limits of the governmental unit for the following year. In calculating the levy limit base for later years, the amount deducted must be treated as a local government aid payment. For the purpose of this tax increment financing plan, excess tax increment means that increment received in any year which is in addition to the amount needed to satisfy the HRA's current financial obligations or commitments, as specified in the tax increment financing budget listed in Appendix D, or which is in addition to that which is placed in a separate account for the purpose of accumulating funds needed to satisfy those financial obligations or commitments in the future. U. Restrictions on Pooling; Five-Year Limit given: In accordance with Minn. Stat., Sec. 469.1763, the following terms have the meanings "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues may be spent for. such purposes under other law. Activities do not include allocated administrative expenses, but do include engineering, architectural, and similar costs of the improvements in the district. "Third Party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the municipality or the development authority or other person substantially under the control of the municipality. B-4-7 Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect to expenditures outside the district: (a) For each tax increment financing district, an amount equal to at least 75 percent of the revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of the revenue derived from tax increments paid by properties in the district may be expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic azea of the project except to pay, or secure payment of, debt service on credit enhanced bonds. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating the percentages that must be expended within and without. the district. Pursuant to Minn. Stat., Sec. 469.173, subd. 3 with respect to the five-yeaz rule: (a) Revenues derived from tax increments aze considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs: (1) before or within five years after certification of the district, the revenues aze actually paid to a third party with respect to the activity; (2) bonds, the proceeds of which must be used to finance the activity, aze issued and sold to a third party. before or within five yeazs after certification and the revenues are spent to repay the bonds; (3) binding contracts with a third party aze entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation; or (4) costs with respect to the activity aze paid before or within five yeazs after certification of the district and the revenues aze spent to reimburse a party for payment of the costs. (b) For purposes of this subdivision, bonds include subsequent refunding bonds if one of two tests is met: (1) the proceeds of the original refunded bonds were spent on activities within five yeazs after the district was certified or (2) the original refunded bonds aze issued within five yeazs after the district was certified and the proceeds aze expended on activities within a reasonable temporary period within the meaning of the use of that term under section 148(c}(1) of the Internal Revenue Code. Pursuant to Minn. Stat., Sec. 469.173, subd. 4 with respect to use of revenues for decertification: B-4-8 Beginning with the sixth year following certification of the district, 75 percent of the revenues derived from tax increments paid by properties in the district that remain after the expenditures permitted under subdivision 3 must be used only to pay outstanding bonds, as defined in subdivision 3, paragraph (a), clause (2), and paragraph (b) or contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4). When the outstanding bonds have been defeased and when sufficient money has been set aside to pay contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and (4), the district must be decertified and the pledge of tax increment dischazged. V. Assessment Agreements Pursuant to Minn. Stat., Sec. 469.177, subd. 8, the HRA may enter into an agreement in recordable form with a developer or redeveloper of property within the tax increment district which establishes a minimum market value of the tax increment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements aze to be constructed and so long as the minimum mazket value contained in the assessment agreement appeazs in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tag Increment District and Maintenance of the Tag Increment Account Administration of the tax increment district will be the responsibility of the Richfield Housing and Redevelopment Authority. The tax increment received as a result of increases in the net tax capacity of the tax increment district will be maintained in a special account separate from all other HRA and municipal accounts and expended only upon sanctioned activities identified in the tax increment financing plan. X. Annual Disclosure Requirements Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before March 1 of each yeaz, the HRA must annually report to the commissioner of revenue the following: 1. Total principal amount of nondefeased tax increment financing bonds that aze outstanding at the end. of the previous calendar year; and 2. 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. - Also in accordance with this requirement the HRA must annually report to the commissioner of revenue the following amounts for the tax increment financing district: B-4-9 1. Type of district; 2. Date on which the district is required to be decertified; 3. Captured net tax capacity of the district, by property class as specified by the commissioner of revenue, for taxes payable in the current calendar year; 4. 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 (i) to pay bonds, the proceeds of which were or may be expended on activities located outside of the district, (ii) for deposit into a common fund from which money may be expended on activities located outside of the district, or (iii) to otherwise finance activities located outside of the tax increment financing district; and 6. Any additional information that the commissioner of revenue may require. Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment financing district. These assumptions are based on discussions with the HRA, City, and County staff, and consultants. Z. Municipal Findings Pursuant to Minn. Stat., Sec. 469.175, subd. 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: 1. The Tax Increment Financing District is a redevelopment district pursuant to Minn. Stat., Sec. 469.174, subd. 10. It has been determined that parcels consisting of 70 .percent of the area of the district are occupied by buildings, streets, utilities or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. Specifically, staff has examined each parcel against the statutory definitions of structurally substandard and other blight definitions due to the non-contiguous nature of the tax increment parcels. Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. A detailed account of property examination for eligibility are enumerated within a document entitled Richfield - Rediscovered Housing Program: Blight Qualification Survey -Cycle IV" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division ,for the duration of the tax increment district's life. B-4-10 2. The proposed activities listed in this plan, in the opinion of the HRA, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Therefore, the use of tax increment financing is deemed necessary since the proposed development requires certain necessary planning, property assembly and other improvements without which interested developers, builders, or buyers could not construct the aforementioned improvements; and without the use of tax increments or other revenues authorized by this plan to assist with the financing of the activities, interested developers, builders, or buyers would not proceed with redevelopment in the redevelopment project area. 3. The tax increment financing plan conforms to the general plan for the development of the City as a whole as it will result in the continuation of the Richfield Rediscovered Housing Program for the development, redevelopment, new construction and other related improvements of residential homes for which there is limited sources of revenue available. 4. The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will .enable the HRA to provide the necessary redevelopment for the project area and City, as a whole, in a planning manner suitable to both the public and private sectors. B-4-11 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "B" AND TAX INCREMENT FINANCING DISTRICT "B-4" APPENDIX A REDEVELOPMENT PROJECT AREAS "A" AND "B" Appendix A-4-1 N N m v~ £z HSION VIS v~ zz Is iZ 410z 41 61 MOll3d9NOl 3AV atlO30 41 81 ~ - 41L1 41 91 '_ NOlONIWOOlB - 41 51 Y 41 b1 - 41 £1 41 Z1 4111 4101 II 101113 ~I OOtl OIHO II snewnlo~ ,~ Xatld ONtl lxtlO I '3AV ONVl1a0d IS 415 1 41 b Ij NO1NIll ` C P~£ y '~Z , I SN3A31S Is1 '3AV 13llOOIN ~ 1 1130SItllB II f H1aOM1N3M II AanBSllld III LNVStl3ld ~q~ III oNVa9 II 131aatlH 11 I1 al31dav9 I1 j ~3ntl 3lVONAI ~0. 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HOIaOItl ~\~ ~ r~ ~~ ~~~ I 1NVAa9 ~ ~ ~ ~ a __ I xvdloa ~b°_.,I~ ~ ° w ~ ~r~ __ ~~ II 1NOdn0 o a I O Y ~ ~L-~ ~~~ M 3 ~ - NOSa3w3 ~'\ - i Jt~l- \ __/ ~ :. - r_- / -~~ aaval9 ~l - -h_ =~_--- - - - -~ "~ LaloewnH 3AIa0 3aoN5 ^.__.--.__.- __-JOVSIL -- -:-- __ -~ '~ s3wvr sal ~ _ i ~ (~ XONN ~~I____.-~I__-J ~_ ~~_ I I ~ 7 Ntl901 __~~' (~-~i ii` ii ii ~i _ ~-~ c ~C~`- - ,~ Ntl9a0w II `_IL.____.ll..__._11_-._ LL ~ L~CJ /~I a3AIlON ( rr 3AV NN3d .-. (~ 1(-__- 1 I. _~l_.._= -71-- _ I_~~ ~U~ _~i.. _ : ~ ~ _ I~ I I ll3ssna ~~ ~(_ _ r1 1 I--- - Ir-= o -- ~ -.]I 1C ;(_ -tl___I II. I I! -IL_JL- ~U stlwoHl - _ -_ _ _- -..__ .. .. I NOldn ~~ ll. II -I~ I ~ ~I (I ~ L..- .1 L_. L .~~~' 1 30NIA N I u I~ I- NanellsvM ~3Atl S3Xa3x H n ~ w u~i ~ u~i u~i u~i ~ ~ r ~ r ~ o 3 N N m IA N m N m m m m mm x p r ` .`n a v~ m r m m o o-' - n~ .M a m m n m 1 o1O m m m m m m N r r r r r r r r r r r Qi Qi fYi Qi H U W ti P4 a Q ~i W U H W a W H w x U H x In ~, APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-4" PROPERTY ADDRESS " PID NUMBER ORIGINAL NET TAX CAPACITY** 6318 -Knox Ave. ++ 28-028-24-21-0107 $ 580 6421 -Girard Ave. 28-028-24-13-0008 $ 540 6929 -Queen Ave. 29-028-24-44-0171 $ 600 2819 - W. 701/2 St. ~+ 32-028-24-12-0068 $1,449 6305 -Girard Ave So. 28-028-24-12-0027 $ 590 6813 -Russell Ave So. 29-028-24-44-0038 $ 590 6736 - U ton Ave So. 29-028-24-42-0132 $ 620 6300 -Aldrich Ave.* 28-028-24-11-0041 $ 560 7432 -Aldrich Ave. 33-028-24-41-0026 $ 579 6320 -Girard Ave So. 28-028-24-12-0033 $ 560 6440 -Humboldt Ave So.* 28-028-24-24-0009 $1,196 6306 -Irvin Ave So. 28-028-24-21-0126 $ 590 6310 -Irvin Ave So. 28-028-24-21-0075 $ 560 6645 -Knox Ave So. 28-028-24-31-0032 $ 690 6601 - Lo an Ave So. 28-028-24-31-0061 $1, 020 6539 -Oliver Ave So.* 28-028-24-23-0092 $ 432 6824 -Queen Ave So.* 29-028-24-44-0024 $ 380 6825 -Queen Ave So. 29-028-24-44-0008 $ 760 6913 -Queen Ave So. 29-028-24-44-0175 $ 580 6933 -Queen Ave So.* 29-028-24-44-0170 $1,030 2916 - W. 71 1 /2 St. 32-028-24-12-0072 $ 600 1908 - W. 66th St. 28-028-24-23-0125 $ 490 6845 -Newton Ave. 28-028-24-33-0018 $ 680 6320 -Oliver Ave. 28-028-24-22-0122 $ 590 7332 - U ton Ave. + 32-028-24-13-0059 $ 860 * Property moved from Cycle III acquisition list to the Cycle IV acquisition list. **Original tax capacity for taxes assessed in 1994 and payable in 1995 +Double lot. Appendix A-4-3 APPENDIX C ESTIMATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "B-4" Tax Increment Estimates and Calculations Lower Limit of Range (Per Home) Upper Limit of Range (Per Home) Construction Cost and and Buildin $ 92,000. $160,000 x Sales Ratio 93% 93% Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class 1 A; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance $ 720 $ 271 $ 720 $ 1,536 New Tag Ca aci $ 991 $ 2,256 - Ori ' -Net Tax Ca aci Av . * $ 596 $ 596 Ca tared Net Tag Ca aci $ 395 $ 1,660 x Tax Capacity (Extension) Rate Taxes Pa able in 1995 140.669% 140.669% Annual Tag Increment $ 556 $ 2,335 x Number of Potential New Pro am Homes 25 25 Total Gross Annual Tag Increment~* $13,891 $ 58,378 *Assumes non-homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. Estimate of Ad Valorem Lower Limit of Range Upper Limit of Range Pro er Taxes (Per Home) (Per Home) Construction Cost and and Buildin $ 92,000 $160,000 Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class lA; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value $ 720 $ 720 2.00% of the balance $ 271 $ 1,536 New Tag Ca aci $ 991 $ 2,256 x Tax Capacity (Extension) Rate Taxes Pa able in 1994 140.669% 140.669% Annual Ad Valorem Pro a Taxes $ 1,394 $ 3,173 x Number of Potential New Pro am Homes 25 25 Gross Total Annual Ad Valorem Pro a Tages $ 34,851 $ 79,325 Appendix A-4-4 APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "B-4" Line Item Per Pro Gross Amount* Pro e A uisition $52,000 $ 1,300,000 A sisals $ 350 $ 8,750 Demolition/Site Clearance $ 6,000 $ 150,000 Le al Ex enses $ 1,000 $ 25,000 Total $59,350 $ 1,483,750 *This budget assumes potential acquisition, of all 25 Cycle IV properties located within Tax Increment Financing District "B-4". Note that program revenue allocation of $750,000 allows for the acquisition of 13 properties on average. Appendix A 4-5 APPENDIX E ESTIlVIATE OF IlVIPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "B-4" The purpose of analyzing impacts on taxing jurisdictions is to (a.) determine how tax increment assistance provided to a proposed redevelopment project impacts taxing jurisdictions; (b.) determine the level of impact as it relates to tax base; and (c.) determine the amount of taxes a taxing entity would need to levy in order to increase their respective tax base by the amount the project brings in absent the project. If the "But For" test were not met, construction would not occur. That is, without the creation and existence of the tax increment district, construction would not occur because the cost of developing the proposed project by a private developer would be prohibitive. Acceptable rates of return on project investment could not be met and risk would be too high. Development would not move forward. Construction would not occur without the assistance of the city. In light of this, the impact to taxing jurisdictions would be $0. Foregone would be the benefits of a new construction project, increased overall tax base, and other project objectives. The estimated impact of Tax Increment District "B-4" would be as follows if the project were built without tax increment financing: IlVIPACT ON TAX BASE Range of Captured Entity's Total Range of Captured Net Tag Capacity Tagin Enti Net Tag Ca aci Net Tag Ca aci to Enti Total Ci of Richfield 21,056,158 13,891 - 58,378 0.066 - 0.277 Herne in Coun 966,907,816 13,891 - 58,378 0.001 - 0.006 School District 280 21,056,158 13,891 - 58,378 0.066 - 0.277 The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. _ Appendix A-4-6 IlVIPACT ON TAX RATES Tazing Entity Current Taa Rate Range of Captured Taa Ca aci Potential Tages Ci of Richfield 26.626 13,891 - 58,378 $ 3,699 - 15,544 Henne in Coun 37.454 13,891 - 58,378 $ 5,203 - 21,865 School District 280 67.327 13,891 - 58;378 $ 9,352 - 39,304 Other ~ 6.357 13,891 - 58,378 $ 883 - 3,711 Total 140.669 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A-4-7 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 27 Agenda May 15, 1995 Issue Statement: Authorization to issue Richfield Rediscovered completion certificates to: • Marlin Grant Homes Inc. for 6828 Elliot Avenue, 6404 15th Avenue, 6500 14th Avenue and 7525 Girard Avenue; • Rock Port Homes Inc. for 6404 Humboldt Avenue; • Sussel Homes Inc. for 6625 Stevens Avenue; and • Parsley Builders for 6821 Logan Avenue. Background: The HRA authorized development of the above referenced properties. The development agreements provide for the issuance of a certificate of completion when construction is completed. (A sample certificate is attached.) Except for exterior concrete and driveway work and final grading and landscaping, the homes are completed and occupied. Staff is holding escrows to ensure completion prior to the actual release of each certificate. Recommended Motion: Authorize the Chair and Executive Director to execute the completion certificates in accordance with the attached resolution which includes verification by staff of final site work and total completion. Basis of Recommendation: 1. Construction is essentially completed and a certificate of occupancy has been issued by the Inspection Division for each house. Final grading and landscape, driveway, and concrete work is weather dependent and anticipated to occur by late May or early June. 2. The builders have performed in accordance with the construction agreement and have requested the issuance of the completion certificate, including the release of performance security. Alternative Recommendation: Do not issue the certificates of completion at this time. Discussion/Decision Mode: This matter will be presented at the May 15, HRA meeting Respectful submitted, Jam .Prosser Executive Director JDP:ds RESOLUTION NO. RESOLUTION RELATING TO THE ISSUANCE OF A COMPLETION CERTIFICATE FOR THE RICHFIELD REDISCOVERED PROPERTIES 6828 ELLIOT AVENUE, 6404 15TH AVENUE, 6500 14TH AVENUE, 7525 GIRARD AVENUE, 6404 HUMBOLDT AVENUE, 6625 STEVENS AVENUE, AND -6821 LOGAN AVENUE WHEREAS, IN 1994 the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) entered into a contract for the construction of single family homes as follows: Address Builder Performance Security 6828 Elliot Avenue 6404 15th Avenue 6500 14th Avenue 7525 Girard Avenue 6404 Humboldt Avenue 6625 Stevens Avenue 6821 Logan Avenue Marlin Grant Homes Marlin Grant Homes Marlin Grant Homes Marlin Grant Homes Rockport Homes Inc. Sussel Homes Inc. Parsley Builders $27,500 $26, 000 $29,000 $30,000 $30,000 $26,500 $30,000 WHEREAS, the construction at the site is essentially completed except for weather related landscaping, grading, concrete and driveway work which will be verified by staff prior to the release of the certificate; and WHEREAS, the referenced performance security can be released since other security is retained until all site work is done. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that: Upon the field verification of completion by staff the completion certificates for the above referenced properties can be issued. 2. The performance security can be released for the property. Passed by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of May. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that .has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and date ,filed as Document No. with respect to construct of the approved construction plans and is released and forever discharged from its obligations to construct under such above- referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By By Its Chairperson Its Executive Director STATE OF MINNESOTA ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this 199 , by day of and the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 19 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 26 Agenda May 15, .1995 Issue Statement: Public hearing and considertion of sale of 6318 Nicollet Avenue. Background: The rehabilitation project at 6318 Nicollet Avenue was completed in early 1993. On April 19, 1993 the HRA authorized the property to be leased to a 77th Street relocatee. The individual has moved to a permanent location and the property has been prepared for sale. A two member, income qualified family has been selected as purchaser for the two bedroom home. They meet all the requirements stated in Attachment A. HRA authorization to sell the property is required prior to final processing. The home is being sold for $80,0.00. The purchasers are making a down payment of $4,000. They have applied for a mortgage in the amount of $76,000. Project cost are covered by the down payment and first mortgage. No second mortgage will be made, since the initial purchase price is already affordable. The HRA will pay up to two and a half points for mortgage discounting and the cost of title insurance (approximately $200) at closing. If at any time during final processing the family is found ineligible by the lender, the purchase agreement is void and earnest money released. At this time, however, the lender has qualified the purchaser through the preliminary processing. Recommended Motion: It is recommended that following the public hearing, the HRA adopt the attached resolution which authorizes the disposition. of the HRA owned property at 6318 Nicollet Avenue. Basis of Recommendation: 1. A qualified family has been identified as a purchaser and meets program requirements. 2. A purchase agreement cannot be processed further by the lender without HRA authorization of sale. 3. A public hearing notice has been published in the Sun-Current which allows the HRA to consider the sale at the May meeting. 4. It has been determined that the sale for residential purposes in consistent with the Comprehensive Plan. Alternative Recommendation: Do not adopt the resolution. However, this would cause a delay in the sale of property and would increase HRA holding costs. Discussion/Decision Mode: Authorization of the sale is required at the May 15 meeting so that the buyers can finalize mortgage financing for a prompt closing. Respectful submitted, 3 f Jams ~. Prosser Exec ive Director JDP:ds RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA ' RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6318 NICOLLET AVENUE SOUTH WHEREAS, the Housing and Redevelopment Authority (HRA), owns certain real property located at 6318 Nicollet Avenue, legally described as: Lot 4, Block 8, Nicollet Homes Addition; and WHEREAS, the HRA acquired the property so that the South Hennepin Technical College (Vo-Tech) could rehabilitate the family home at 6318 Nicollet Avenue, to be sold by the HRA to a moderate income family; and WHEREAS, construction work is completed; and WHEREAS, the tenant has moved out and the property has been prepared for sale; and WHEREAS, the Ruud family has been identified as qualified purchasers for 6318 Nicollet Avenue, and WHEREAS, the conditions of sale include a total sales price of $80,000, a first mortgage of $76,000 payable to the lender'and a $4,000 down payment; and WHEREAS, the sale of 6318 Nicollet Avenue may be authorized by the HRA following a public hearing which considers the disposition of the property; and WHEREAS, that hearing has been held following proper publication of notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that the HRA Chairperson and Executive Director are authorized to execute the purchase agreement and other required documents so that the disposition of HRA owned property at 6318 Nicollet Avenue occurs as presented herein. Passed by the Housing. and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of May, 1995 Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary NEW HOME PROGRAM ELIGIBILITY REQUIREMENTS FOR HOME BUYERS ATTACHMENT A Have a 2-4 member family (a family is defined as persons related by blood, marriage or operation of law). Be a first time home buyer (or have not owned in 3 years). Have the following maximum annual income depending upon family size: Famil, S~ize_ Maximum Income 2 $ $32,150 3 $ $35,900 4 $ $39,900 The income is 80% of the metropolitan area median income, an accepted CDBG program income level. Have the ability to make monthly payments on a mortgage, pay the required downs payment, and pay buyer-required closing costs. Agree to be subject to a lien by the HRA for the difference between the initial sales prices (the first mortgage plus down payment) and the actual value. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 25 Agenda May 15, 1995 Issue Statement: Consideration of Meridian Center development concept approval for the Cloverleaf site, TOLD Development Company. Background: The HRA owns the Cloverleaf site which has approximately seven acres remaining for development. Mr. Ralph Robinson of TOLD Development Company of Maple Grove has had a continuing interest in developing the site for office use. Mr. Robinson will present a concept to the HRA on May 15. That concept envisions two office buildings and a parking structure. Phase I would approximate seven stories and include some 135,000 square feet. Phase II would approximate eleven stories and some 210,000 square feet. Recommended Motion: Approve the development concept of Meridian Center for Cloverleaf site from TLD Development Company. Basis of Recommendation: 1. Mr. Robinson has recently completed a market study which indicates that "the timing of Meridian Center is critical." A May 1, 1995 editorial, attached, in the MN Real Estate Journal concurs in this assessment. 2. Before the concept can be marketed to potential users, Mr. Robinson needs concurrence on this concept. 3. Members of both .the City Council and Planning Commission have been invited to attend the HRA meeting to hear the presentation. 4. The HRA has two. leases on the site proposed for development by TOLD. One with Naegele, which expires October 31, 1997, may be canceled with 60,day notice. The other lease is with Shafer Contracting, which expires December 31, 1995, and may be canceled with a 90 day notice. 5. Revenues available from a transaction with TOLD could be utilized to assist with upgrading the Lyndale Avenue commercial frontage. 6. The proposal is consistent with the objectives of the HRA for this site. Alternative Recommendation: 1. Direct staff to solicit proposals from other developers. 2. Decide to not pursue development at the time. Discussion/Decision Mode: Mr. Robinson has expressed the necessity of bringing the concept to the market place now. Respectfully submitted, Jams .Prosser Executive Director JDP:ds ~~ ~. ~ ~ ~ - _ z ~ - -~ ~ ~ r rl 1. ~ ~ N ~ r r 7~ v L r^~ ~ C ~ r Y ~~ r ~ ~ J _ fG G ~ ~` .~ ~ C' ~ -, r r ^~ J. r ~, . , ~ _ -- r T T. ~. _ - ~ ~ ~ ~ `~J Z ~y _ _ ~ n - m r r N (. - ~ ~r Y n C d r - T v ,. r r G QG ~ - v _ "_ -- O__ ~' _ r G_ G - O n ~: v Tr N r'a N - r -= G r N - ~ C %' - _ ... C7 G ~ r= r' ~ t"i .-.. r .-. ? -^ r r r C' ~ ~.~ ~, to n _, _ ~ ~ [~ G (~ .~ Q. n • 1 "" S r ~- `-+ I ~ ~ ~ C' ~ C ~ Q" f0 ~ ...c ..} :ZC ~ }mil S ("' ~ ~ ~ r 7. 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