Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
08-24-92 agenda
CITY OF RICHFIELD, MINNESOTA k MONDAY, AUGUST 24, 1992 • REGULAR CITY COUNCIL MEETING 7:00 P.M. COUNCIL CHAMBERS AGENDA INTRODUCTORY PROCEEDINGS CALL TO ORDER PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES OF (1) SPECIAL CITY COUNCIL MEETING OF AUGUST 10, 1992, AND (2) REGULAR CITY COUNCIL MEETING OF AUGUST 10, 1992 PRESENTATIONS 1. OPPORTUNITY FOR PERSONS TO ADDRESS THE COUNCIL ON ITEMS NOT LISTED ON THE AGENDA AGENDA APPROVAL 2. COUNCIL APPROVAL OF AGENDA CONSENT CALENDAR NOTE: CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND RECOMMENDED ACTIONS HAVE ALSO BEEN APPROVED. NO FURTHER COUNCIL ACTION IS NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY REQUEST THAT AN ITEM BE REMOVED FROM THE CONSENT CALENDAR AND PLACED ON THE REGULAR AGENDA FOR COUNCIL DISCUSSION AND ACTION. ALL ITEMS LISTED ON THE CONSENT CALENDAR ARE RECOMMENDED FOR APPROVAL. 3A. CONSIDERATION OF APPROVAL OF REQUEST FOR AMENDED OFF-STREET PARKING PERMIT AT CHURCH OF ST. RICHARD, 7540 PENN AVENUE C.L. 200 B. CONSIDERATION OF APPROVAL OF RESOLUTION REQUESTING HEARING TO DETERMINE PUBLIC GRADE CROSSING WHERE 77TH STREET WOULD INTERSECT THE RIGHT OF WAY AND TRACKS OF SOO LINE RAILROAD C.L. 201 C. CONSIDERATION OF APPROVAL OF REVISED SOUTHWEST FIRE MUTUAL AID ASSOCIATION AGREEMENT C.L. 202 D. ESTIMATE #1 PAYMENT FOR SITE REDEVELOPMENT OF JEFFERSON • PARK; VEIT & COMPANY, INC.; $20,278.26 E. FINAL PAYMENT FOR STORM SEWER IMPROVEMENT AT 69TH AND XERXES AVENUE; S.M. HENTGES & SONS, INC,; $5,000.00 PUBLIC HEARING k 4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING • REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN FOR RICHFIELD REDISCOVERED PROGRAM COUNCIL LETTER NO. 203 ADMINISTRATIVE REPORTS & OTHER BUSINESS 5. CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING DEFEASANCE OF $1,300,000 RECREATIONAL FACILITIES REVENUE BONDS OF 1979 COUNCIL LETTER NO. 204 6. CONSIDERATION OF SETTING DATE FOR SPECIAL BUDGET MEETING TO CONSIDER 1992 REVISED/1993 PROPOSED BUDGET AND PROPOSED PROPERTY TAX LEVY COUNCIL LETTER NO. 205 7. CONSIDERATION OF WHETHER TO HOLD A CITY COUNCIL STUDY SESSION ON SEPTEMBER 7, 1992 COUNCIL LETTER NO. 206 AIRPORT BUSINESS 8. AIRPORT STATUS REPORT CORRESPONDENCE 9. LEGISLATIVE REPORT COUNCIL CHOICE 10. COUNCIL DISCUSSION ITEMS 11. CLAIMS AND PAYROLLS 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. CITY OF RICHFIELD, MINNESOTA Council Letter No. 206 Agenda August 24, 1992 Issue Statement: Council consideration as to whether to hold a City Council Study Session on September 7, 1992. Background: The City Council regularly conducts a Study Session on the first Monday evening of each month. However, the first Monday in September 1992 is Labor Day which is a holiday and City offices will be closed. Recommended Motion: Cancel the City Council Study Session regularly scheduled for September 7, 1992. Basis of Recommendation: 1. September 7 is a holiday and City offices will be closed. 2. The holiday may cause a problem with a quorum for the Council. 3. The business can be carried over to the October 5 regularly scheduled City Council Study Session. Alternative Recommendation: 1. Reschedule the first City Council Study Session in September to September 8. Discussion/Decision Mode: This item has been placed on the August 24, 1992 City Council agenda so proper notification can be made if the Study Session is cancelled. Resp tfully submitted, en L. Devich Acting City Manager SLD:cak 0 • CITY OF RICHFIELD, MINNESOTA Council Letter No. 205 Agenda August 24, 1992 Issue Statement: Setting date for special budget meeting to consider the 1992 Revised/1993 Proposed budget and the proposed property tax levy. Background: City staff •is now working to prepare the 1992 Revised/1993 Proposed budgets. It is anticipated that the draft budget documents will be printed and distributed to Council Members on or before August 28, 1992. Once the draft budget documents have been distributed, City staff will present the proposed budget to the City Council prior to the adoption of the proposed 1993 budget and preliminary property tax levy. Truth-in-Taxation legislation mandates that each taxing authority adopt a proposed 1993 preliminary property tax levy for payable year 1993 and Truth-in-Taxation public hearing dates and submit them to the County Auditor on or before September 15, 1992. In order for Council Members and staff to complete an overview of the 1993 budget document prior to the City Council's submission of a proposed property tax levy by September 15, the following date and time is being suggested for a special budget meeting: Tuesday, September 1, 1992 at 7:00 p.m. The September 1 meeting will be similar to previous years' presentation held in an informal study session format. The City Council could then adopt the proposed property tax levy resolution at either the special meeting or at the September 14, 1992 regular City Council meeting. This would provide adequate time to submit the necessary documents to the County Auditor by September 15, 1992. Recommended Motion: Set the special budget meeting recommended in this letter and direct the City Clerk to give proper notice of the meeting. Basis of Recommendation: 1. The City Council must have its proposed 1993 budget and preliminary property tax levy for payable year 1993 for certification to the Hennepin County Auditor along with Truth-in-Taxation public hearing dates for the 1992 Revised/1993 Proposed budget and tax levy no later than September 15, 1992. 2. The budget review process scheduled for the above special meeting will give the City Council an overview of the budget prior to setting the proposed property tax levy and will comply with the City Charter. • 3. The tight scheduling of Truth-in-Taxation provides that the City receive its revenue informational for the ensuing year in August. Thus, there is a very tight timeline for completing a proposed budget, holding an information meeting on the budget with the City Council and passing a proposed levy before September 15. This proposed date would facilitate that process. Alternative Recommendation: 1. The Council could select another date for the budget review as long as adequate time exists to submit a preliminary property tax levy and budget to the County.Auditor by the September 15, 1992 deadline. Discussion/Decision Mode: The City Council should act on this matter at the August 24 City Council meeting to allow time for preparation and proper notice of the special budget meeting. Notice of the September 1, 1992 date has already been submitted to the Sun Current to allow a published notice on August 26 in the Sun Current newspaper. (2ev;?:77 fully submitted, ,wr? L. Devi ch Acting City Manager SLD:cak CITY OF RICHFIELD, MINNESOTA Council Letter No. 204 • Agenda August 24, 1992 Issue Statement: Adoption of resolution authorizing defeasance of $1,300,000 Recreational Facilities Revenue Bonds of 1979. Background: On April 4, 1979, the City of Richfield sold a $1,300,000 Recreational Facilities Revenue Bond issued to finance the construction of Rich Acres Golf Course. The bonds, which were issued under Minnesota Statutes Section 471.191, are scheduled to mature on November 1, 2000. Further, at the option of the City, all bonds maturing after November 1, 1993, are subject to redemption (callable) at a price of par and accrued interest. The net interest rate for the bond issue is 6.54%. The defeasance of the bond issue would require the City to place approximately $840,000 into an escrow account held by a suitable bank as escrow agent, dedicated to paying off the remaining principal and interest on the bonds. The escrow funds would be invested in direct obligations of the U.S. Treasury and would make regular principal and interest payments on the bonds until November 1, 1993 at which time the remaining bonds would be redeemed and retired. However, from the time the actual defeasance process takes place and the direct obligation • securities are purchased, any restrictions imposed upon the golf course operation by the covenants of the bond issue would become inoperative. The bond holder's security is unaffected however, and may actually be enhanced because of the pledge of the government securities. The scheduled date for the defeasance is September 1, 1992. In conjunction with the defeasance, the City staff, pursuant to Council direction and the auditor's recommendation is creating a Recreation Enterprise Fund which will encompass the Golf Course, Ice Arena, Swimming Pool and the Mini-golf operation, once the latter facility is operative. This Recreation Enterprise Fund will be included in the 1992 Revised/1993 Proposed budget document. It should be noted that while these operations are all included in one Enterprise Fund, each operation will still be treated separately for accounting purposes. The funds used to complete the defeasance will be derived from two sources: Golf Course Fund $250,000 Cable T.V./Program Fund (Loan) $600,000 The Golf Course now holds an adequate fund balance to contribute $250,000 to the defeasance. This amount includes a standing $130,000 debt service reserve required by the current bonds. This would leave the Golf Course with a comfortable balance to complete any scheduled capital improvements and contingency expenses. 5--1 The remaining $600,000 would be advanced as a loan from the Cable T.V./Program Fund which currently carries a fund balance in • excess of the $600,000. There are no immediate plans for those funds and a recommended repayment schedule attached to this Council Letter projects annual payments of $15,000 less than the Golf Course Fund's current annual debt obligations of approximately $115,000. The loan would utilize a 6.5% interest rate with a final payment in the year 2000. The cost of the defeasance would be as follows: Financial Advisor $3,000 Bond Counsel 1,000 Verification Accountant 1,500 Escrow Agent 1,000 Estimated Total 6 500 Recommended Motion: Adopt the attached resolution authorizing the defeasance of Recreational Facilities Revenue Bonds of 1979. Basis of Recommendation: 1. The City has been advised by the City's Auditor to combine a number of the City's recreational enterprise functions into a Recreation Enterprise Fund. 2. The defeasance of the Recreational Facilities Revenue Bonds • of 1979 removes the bond covenants which restrict the City's ability to fully integrate the Golf Course into such a fund. 3. There is adequate cash available in the Golf Course and Cable T.V./Program Funds to create funding necessary to achieve this defeasance. Alternative Recommendation: 1. Do not approve a defeasance of the Recreational Facilities Revenue Bonds of 1979. 2. Postpone or delay the defeasance of the bonds. However, a delay would likely mean additional cost in terms of the size of the escrow necessary to defease the bonds. This is driven by interest rates of the direct obligation securities. Discussion/Decision Mode: It is recommended that the Council take action on the August 24 City Council meeting to authorize the defeasance of the Recreational Facilities Revenue Bonds of 1979 in order to allow for a September 1, 1992 transaction date. Resp ctf lly su itted even Devic Acting City Manager SLD:ds 5-a • RESOLUTION NO. RESOLUTION RELATING TO GROSS REVENUE RECREATIONAL FACILITIES BONDS OF 1979: PROVIDING FOR THE DEFEASANCE.OF THE BONDS BE IT ENACTED by the City Council of the City of Richfield, Hennepin County, Minnesota (City) as follows: Section 1. Background: Findings. 1.01. The City has by Resolution 6059 (Resolution) issued and sold its $1,300,000 Gross Revenue Recreational Facilities Bonds of 1979, dated May 1, 1979 (Bonds) to provide financing for Rich Acres Municipal Golf Course, all pursuant to Minnesota Statutes, Chapter 475 and Laws 1979, Chapter 1 (Act). The Bonds maturing on November 1, 1994 and thereafter are subject to redemption and prepayment on November 1, 1993 (Redemption Date) and on any interest payment date thereafter at a price of par plus accrued interest. The outstanding principal balance of the Bonds is $795,000, The Bonds mature on November 1 in the years 1992 through 2000, both dates inclusive. 1.02. The City's staff, with the advice of its financial advisers, Evensen Dodge, Inc. (Financial Adviser), have determined that there exist and are available in various funds of the City monies which if invested in United States Special Local • Government Securities (SLGS) or other direct obligations of the United States Government will provide adequate funds to defease and provide for the payment of the principal and Interest on the Bonds at the times and in the amounts necessary. 1.03. It is found and determined that it is in the best financial interest of the City, its recreational program and Rich Acres Golf Course that the Bonds be defeased and provision made for their payment as authorized by the Act. 1.04. It is further found and determined that the Bonds are to be called for redemption and prepayment on November 1, 1993. Section 2. Escrow: Defeasanea. 2.01. To accomplish the defeasance of the Bonds there is established an escrow account (Escrow Account) with American National Bank and Trust Company, a suitable financial institution in the state whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500, 000. A form of escrow agreement (Escrow Agreement) has been presented to and reviewed by this Council. The form of the Escrow Agreement is approved. The Mayor and City Manager are authorized and directed to execute and deliver the Escrow Agreement on behalf of the City. 2.02. As of the date of execution of the Escrow Agreement (Transfer Date) there will be and are hereby transferred, pledged and appropriated to the Escrow Account the following monies (Funds) : (a) from the Golf Course Operating Fund, the sum of $250, 000; ,53 (b) from the CATV Program Fund the sum of $600,000. It is estimated that the sum total of the Funds herein appropriated, together with monies on hand in the debt service and reserve funds for the ,Bonds, is adequate when invested as herein provided to pay the principal of and interest on the Bonds on the Redemption Date. 2.03. The Funds are to be invested in SLGS or other direct obligations of the United States Government maturing or callable by. the City in such dates and bearing interest at such rates as may be required to provide, together with other funds in. the Escrow Account, to pay principal and interest on the Bonds prior to and on the Redemption Date. The Funds may be used only for the purposes stated in this section, except that any surplus funds remaining in the Escrow Account after the Redemption Date is to be transferred to the City for the purposes stated in Section 2.04. 2.04. The appropriation from the CATV/Program Fund is an advance to the Escrow Account for purposes of the defeasance of the Bonds and is to be repaid from the net revenues of the Golf Course Fund with interest at the rate of 6.50% per annum. The term "net revenues" has the meaning given by the Resolution. Repayments of the advance are to be made in annual installments commencing November 1, 1993 and ending November 1, 2000 In accordance with the schedule attached as Exhibit A. 2.05. On the Transfer Date all pledges, covenants and other rights granted by the Resolution to holders of the Bonds will cease and the gross revenues of Rich Acres Golf. Course will no longer be subject to the terms of the Resolution. Section 3. Purchase of Securities. 3.01. The Financial Consultant is authorized and directed to arrange for the purchase of SLGS or other direct obligations of the United States Government in the amounts and of the nature contemplated by Section 2. The Mayor and City Manager are authorized and directed to execute the necessary contracts for the purchase of the government obligations. 3.02. The appropriate officers of the City and the Financial Consultant are authorized to execute all documents and certificates necessary to carry out the purposes of this. Resolution. Section 4. Redemption of Bonds. 1993. 4.01. The Bonds are called for redemption or prepayment on November 1, 4.02. The form of the Notice of Call for Redemption is attached to the Escrow Agreement. Ci . Passed by the City Council of the City of Richfield this 24th day of August, . 1992. Mayor, Martin M-Rch Attest : Clerk, Thomas Ferber 0 ss EXHIBIT A 11 u YEAR 1993 1994 1995 1996 1997 1998 1999 2000. PRINCIPAL 60,000.00 65,000.00 70,000.00 75,000.00 75,000.00 80,000.00 85,000.00 90,000.00 600,000.00 r INTEREST 39,000.00 35,100.00 30,8^5.00 26,325.00 21 ,.-,450.00 16,575.00 11,375.00 5,850.00 186,550.00 =trc:e=zc?= TOTAL DEBT SERVICE 99,000.00 100,100.00 100,875.00 101,325.00 96,450.00 96,575.00 96,375.00 95,850.00 786,550.00 =re=?cc==== $ALANCE $600,000.00 540,000.00 475,000.00 405,000.00 330,000.00 255,000.00 175,000.00 90,000.00 0.00 0 5-6 ESCROW AGREEMENT • GROSS REVENUE RECREATIONAL FACILITIES BONDS OF 1979 CITY OF RICHFIELD, MINNESOTA THIS AGREEMENT, made pursuant to Minnesota Statutes, Section 475.67, (Act) and executed by and between the City of Richfield, Hennepin County, Minnesota (City), and . J, Minnesota, a banking corporation whose deposits are insured by the Federal Deposit Insurance Corporation and whose capital and surplus is not less than $500,000 (Escrow Agent) WITNESSETH: That the parties hereto recite and, in consideration of the mutual covenants contained herein, covenant and agree as follows : 1. The City, in accordance with a resolution adopted by its governing body on August 24, 1992, entitled "Resolution Relating to Gross Revenue Recreational Facilities Bonds of 1979; Providing for the Defeasance of the Bonds; (Resolution), a certified copy of which has been filed with the Escrow Agent, has provided for the defeasance of certain outstanding general obligation bonds (Bonds) of the City, described in the Resolution. 2. The City has also, in accordance with the Resolutions appropriated the amount of $ for purchase of securities which are general obligations of the United States, securities whose principal and interest payments are guaranteed by the United States, or securities issued by agencies of the United States, as described in the schedule which is attached hereto, marked Exhibit A and made a part hereof, and has irrevocably deposited all such funds and securities with the Escrow Agent on the date of this Agreement. It is understood and agreed that the dates and amounts of payments of principal and interest due on the securities so deposited are as indicated in Exhibit A, and that the cash deposited and the principal and interest payments due on such securities are such as to provide the funds required to pay all principal and interest payable on the Bonds, on and prior to their respective maturity dates and at the Redemption Date. 3. The Escrow Agent acknowledges receipt of the cash and federal securities described in Exhibit A and agrees that it will hold such cash and federal securities in a special escrow account (Escrow Account) created by the Resolution in the name of the City, and will collect and receive on behalf of the City all payments of principal and interest on such securities and will remit from the Escrow Account to the paying agent (Paying Agent) for the Bonds the funds required from time to time for the payment of principal and interest on the Bonds to maturity. After payment of all Bonds, with interest accrued thereon, the Escrow Agent will remit any remaining funds in the Escrow Account to the City. 4. In and by the Resolution the City has called the Bonds for redemption and prepayment on November 1, 1993 (Redemption Date). Escrow Agent agrees that it will, prior to or at the Redemption Date, pay to the Paying Agent the amount necessary to pay the principal of and interest on the Bonds. Escrow Agent agrees that it will publish in Northwestern. Financial Review, 2850 Metro Drive, Suite 704, DJK40281 RC145-152 s-7 Bloomington, Minnesota 55425, or any other suitable financial paper described in • Minnesota Statutes, Section 475.60, Subdivision 1, the Notice of Redemption for the Bonds in the form set forth in Exhibit C. Publication of the notice must be made once no earlier than 60 days prior to the Redemption Date and no later than 45 days prior to the Redemption Date. City agrees to supply Escrow Agent with the names of any holders of the Bonds to be redeemed who have registered their names, addresses and serial numbers of their Bonds with the City and requested mailed notice of redemption and Escrow Agent agrees to provide such mailed notice, but published notice alone will be sufficient to effect the redemption of the Bonds. The cost of publishing and mailing notice is included in the compensation of the Escrow Agent provided for in paragraph 13. 5. Escrow Agent expressly waives any lien upon or claim against the moneys and investments in the Escrow Account. 6. If at any time it shall appear to the Escrow Agent that the money in the Escrow Account allocable for such use hereunder will not be sufficient to make any payment due to the holders of any of the Bonds, the Escrow Agent shall immediately notify the City. The City thereupon shall forthwith deposit in Escrow Account from funds on hand and legally available to it such additional funds as may be required to meet fully the amount to become due and payable. The City acknowledges its obligation to levy ad valorem taxes on all taxable property in the City to the extent required to produce moneys necessary for this purpose. Attached hereto as Exhibit B is a statement prepared by a certified public accountant, dated , 1992, demonstrating that such cash and securities are sufficient to comply with the requirements of the Act. 7. The City will not repeal or amend the Resolution. 8. On or before March 1, 1993, and on or before March 1 of each year thereafter until termination of the Escrow Account, the Escrow Agent will submit to the City a report covering all money it has received and all payments it has made or caused to be made hereunder during the preceding twelve months. Such report shall also list all obligations held in the Escrow Account and the amount of money on hand in.the Escrow Account on December 31 of each year. 9. It is recognized and agreed that title to the federal securities and cash held in the Escrow Account from time to time shall remain vested in the City but subject always to the prior charge and lien thereon of this Agreement and the use thereof required to be made by this Agreement. The Escrow Agent shall hold all such money and obligations in a special trust fund and account separate and wholly segregated from all other funds and securities of the Escrow Agent, and shall never commingle such money or securities with other money or securities; provided, however, that nothing herein contained shall be construed to require the Escrow Agent to keep the identical monies, or any part thereof, received for the Account on hand, but moneys of an equal amount (except to the extent such are represented by investments permitted under this Agreement) shall always be maintained on hand as funds held by the Escrow Agent as trustee, belonging to the City, and a special account shall at all times be maintained on the books of the Escrow Agent, together with such investments. In the event of the Escrow Agent's failure to account for any money or obligations held by it in the Escrow Account, such money and obligations DJK40281 RC1C145-15 152 shall be and remain the property of the City, and if for any reason such money or obligations cannot be identified, all other assets of the Escrow Agent shall be impressed with a trust for the amount thereof, and the City shall be entitled to a preferred claim upon such assets. It is understood and agreed that the responsibil- ity of the Escrow Agent under this Agreement is limited to the safekeeping and segregation of the funds and securities deposited with it in the Escrow Account, and the collection of and accounting for the principal and interest payable with respect thereto. 10. This Agreement is made by the City for the benefit of the holders of the Refunded Bonds, and is not revocable by the City, and the investments and other funds deposited in the Escrow Account and all income therefrom have been irrevocably appropriated for the payment of the Refunded Bonds and interest thereon in accordance with this Agreement. 11. This Agreement shall be binding upon and shall inure to the benefit of the City and the Escrow Agent and their respective successors and assigns. In addition, this Agreement shall constitute a third party beneficiary contract for the benefit of the holders of the Refunded Bonds and said third party beneficiaries shall be entitled to enforce performance and observance by the City and the Escrow Agent of the respective agreements and covenants herein contained as fully and completely as if said third party beneficiaries were parties hereto. Any bank into which the Escrow Agent may be merged or with which it may be consolidated or any bank resulting from any merger or consolidation to which it shall be a party or any bank to which it may sell or transfer all or substantially all of its corporate trust business shall, if the City approves, be the successor agent without the execution of any document or the performance of any further act. . 12. The Escrow Agent may at any time resign and be discharged of its obligations hereunder by giving to the Manager of the City written notice of such resignation not less than 60 days before the date when the same is to take effect, and by publication of a copy of such notice in a daily or weekly Minnesota newspaper published in a Minnesota City of the first class, or its metropolitan area, which circulates throughout the state and furnishes financial news as part of its service, not less than 30 days prior to such date; provided that the full costs of securing a successor shall be paid by the Escrow Agent; and provided further that the successor shall also serve as the Escrow Agent without cost to the City. Such resignation shall take effect upon the date specified in the notice, or upon the appointment and qualification of a successor prior to that date. In the event of such resignation, a successor shall promptly be appointed by the City, and the Manager of the City shall immediately give written notice thereof to the predecessor Escrow Agent and publish the same in the manner described in this paragraph 12. If, in a proper case, no appointment of a successor Escrow Agent is made within 45 days after the receipt by the City of notice of such resignation, the Escrow Agent or the holder of any Refunded Bond may apply. to any court of competent jurisdiction to appoint a successor Escrow Agent, which appointment may be made by the Court after such notice, if any, as the Court may prescribe. Any successor Escrow Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor agent and to the City a written acceptance of such appointment, and shall thereupon without any further act, deed or conveyance become fully vested with all moneys, properties, duties and obligations of its predecessor, but the predecessor shall DJK40281 RC1C145-15 152 5_f nevertheless pay over, transfer, assign and deliver all moneys, securities or other property held by it to the successor Escrow Agent, shall execute, acknowledge and • deliver such instruments of conveyance and do such other things as may reasonably be required to vest and confirm more fully and certainly in the successor Escrow Agent all right, title and interest in and to any property held by it hereunder. Any bank into which the Escrow Agent may be merged or with which it may be consolidat- ed or any bank resulting from any merger or consolidation to which it shall be a party or any bank to which it may sell or transfer all or substantially all of its corporate trust business shall, if the City approves, be the successor Escrow Agent without the execution of any document or the performance of any further act. 13. The Escrow Agent acknowledges receipt of the sum of $ as its sole compensation for its services under this Agreement. 14. Any notice, authorization, request or demand required or permitted to be given in accordance with the terms of this Agreement shall be in writing and sent by registered or certified mail addressed: If to the City: If to the Escrow Agent: • City of Richfield 6700 Portland Avenue Richfield, MN 55423 Attn : City Manager Attn: Corporate Trust Department 15. The exhibits which are part of this Agreement are as follows : Exhibit A Federal Securities Exhibit B Cash Flow and Yield Verification Report Exhibit C Notice of Call for Redemption IN WITNESS WHEREOF the parties hereto have caused this instrument to be duly executed by their duly authorized officers, in counterparts, each of which is deemed to be an original agreement, on this day of , 1992. CITY OF RICHFIELD, MINNESOTA By Its Mayor (SEAL) By Its Manager 4 RC1C145-15 152 5-/0 . (SEAL) By Its Corporate Trust Officer u 4 RC1C145-15 152 Sql EXHIBIT C • NOTICE OF CALL FOR REDEMPTION $1,300,000 Gross Revenue Recreational Facilities Bonds of 1979 City of Richfield Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Richfield, Hennepin County, Minnesota, there have been called for redemption and prepayment on NOVEMBER 1, 1993 all outstanding bonds of the City designated as Gross Revenue Recreational Facilities Bonds of 1979, dated May 1, 1979, having stated maturity dates of November 1 in the years 1994 through 2000, both inclusive, totalling $660,000 in principal amount, and with the following CUSIP numbers: Year CUSIP 1994 763325 1995 _ 763325 _ 1996 763325 _ 1997 763325 _ 1998 763325 • 1999 7633.25 2000 763325 The bonds are being called at a price of par plus accrued interest to November 1, 1993, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds and coupons for payment at the main office of American National Bank and Trust Company, in the City of St. Paul, Minnesota, on or before November 1, 1993. Dated: August 24, 1992. BY ORDER OF THE CITY COUNCIL By City Manager City of Richfield, Minnesota Further Information: .Evensen Dodge, Inc. 3800 Piper Tower Minneapolis, Minnesota 55402 RC145-152 4 CITY OF RICHFIELD, MINNESOTA Council Letter No.203 • Agenda August 24, 1992 Issue Statement: Public hearing and approval of Modification No. 1 to the Richfield Rediscovered redevelopment and tax increment financing (TIF) plans. Background: In April 1992, the City Council, at the request of the HRA, appropriated $500,000 for the continuation of the Richfield Rediscovered Program which will be known as Phase II. The proposed 1992 Richfield Rediscovered Program would accomplish the following: demolish approximately nine substandard homes on properties valued by the Hennepin County Assessor at $435,000; provide ten homes (one site is a double lot) valued at a minimum of approximately $1,080,000 and generate an estimated $270,000 in land proceeds. Tax increments generated by the new housing development over a 25 year period would provide the balance of the revenue to repay the $500,000. A Publicorp analysis indicates the Phase II program is feasible. Maintaining assumptions consistent with those in Phase I, the $500,000 is projected to be repaid in 25 years. Revenues could exceed expenditures by as much as $165,000. Phase I continues to . show a positive projected balance. To implement the program, the following items must be considered by the City Council: ? the redevelopment plan, and ? the tax increment financing plan. A summary of the plans are provided. The complete document follows the summary. During May and June, staff: ? contacted approximately 60 property owners that had indicated an interest in selling during the last year; ? identified approximately 46 of the 60 property owners that had a continued interest in selling at this time; ? inspected the 46 sites to determine program eligibility, identified approximately 32 eligible properties; and ? excluded the remaining 14 properties for various reasons, such as: being in good repair (4 homes), being a substantial home needing significant repair (3), withdrawing from • program participation (4), and sale for substantial rehabilitation (1). Two offered properties were not within the development district boundary. q'I The redevelopment and tax increment financing plan identifies the • 32 eligible properties. Given that the resources available from the HRA and City Council at this time are limited and approximately nine properties are anticipated for purchase (to make 10 redevelopment sites), 23 properties would remain. The HRA has implemented other new initiatives to help reduce the number of properties needing redevelopment. The estimated budget for the nine properties is as follows: Property Acquisition $435,500 Appraisals 2,925 Demolition/Site Clearance 45,000 Legal Expenses 002,700 $486,125 Contingency 013,875 $500,000 Recommended Motion: Adopt the attached resolution which approves the redevelopment plans A and B, and the TIF plans A-2 and B-2; identified as Modification No. 1. Basis of Recommendation: 1. Richfield Rediscovered is a proven redevelopment program. Qualifying redevelopment sites have been identified within • an area specified in a redevelopment plan originally approved in 1990. 2. The Planning Commission on July 28, 1992 reviewed the modified redevelopment and tax increment finance plans and found the plan and proposed acquisition and disposition of property to be in conformance with the Comprehensive Plan. 3. The HRA on July 20, 1992 approved Modification No. 1 to the Richfield Rediscovered redevelopment and tax increment financing plans. 4. There is a market of 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. A source of funding is available. 7. A cash flow analysis indicates that the program continues to be self supporting excluding staff costs which are covered by the New Home Program. 8. Existing staff resources are available to administer the • program. q-0- 9. Legal counsel has reviewed the program and related documents and found them to be in compliance with existing law. 10. Proper notice of the public hearing was published on August 12, 1992. 11. Hennepin County and the Richfield School District have been notified of the public hearing as required by 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: An objective of this program is to make it possible for developers to-initiate construction in late 1992. To do so, it is necessary to adopt the proposed resolution on August 24, 1992. 2ve c fully submitted, L. evi.c Acting City Manager SLD:ds 40 q-3 CITY OF RICHFIELD RESOLUTION NO. RESOLUTION APPROVING THE REDEVELOPMENT PLANS AND TAX INCREMENT. FINANCING PLANS FOR THE RICHFIELD REDISCOVERED PROGRAM BE IT RESOLVED by the City Council of the City of Richfield, Minnesota (City) as follows: Section 1. Recitals. 1.01 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (Authority) has previously identi- fied areas within the City as being in need of development, redevelopment and construction of new single family homes in order to provide families and individuals living in a substandard, poor quality environment an opportunity to move to standard housing by establishing a cash market for their existing housing and to provide an opportunity for Richfield to accommodate families currently residing in Richfield or elsewhere who are seeking larger housing units with features popular.in today's market. 1.02 The Authority has previously adopted, and the City has previously approved, a Redevelopment Plan for Project Area "A", a Redevelopment Plan for Project Area "B", a Tax Increment Financing Plan for Tax Increment District "A-1" and a Tax Increment Financing Plan for Tax Increment District "B-111, all relating to the Richfield Rediscovered Program (previously, Expanded New Home-Scattered Site Housing Program) (Project), which plans collectively call for public and private expenditures to encourage develop- ment, redevelopment and new construction of single family homes within the project areas. 1.03 The Authority has adopted a modified Redevelopment Plan for Project Area "A", a modified Redevelopment Plan for Project Area "B", a modified Plan for Tax Increment District "A-11', a modified Plan for Tax Increment District "B-111, a Tax Increment Financing Plan for Tax Increment Financing District "A-2" and a Tax Increment Financing Plan for Tax Increment District "B-2" (collectively, Plans), dated July 20, 1992, which Plans are on file with the Authority. 1.04 In accordance with the Housing and Redevelopment Authori- ties Act and Tax Increment Financing Act (collectively, Acts), the Plans were referred to the Richfield planning commission which on July 28, 1992 found that they conform • PM39940 RC125-41 to and are not in conflict with the general plan for redevelopment of the City as a whole. 1.05 The Authority on July 20, 1992 approved the Plans and referred them to the City Council for a public hearing to be held by the City as required by the Acts. 1.06 Copies of the Plans have been forwarded to the board of independent School District No. 280, and to the board of commissioners of Hennepin County along with the Authority's estimate of the fiscal impact on other taxing jurisdictions of establishing Tax Increment Financing District "A-2" and Tax Increment Financing District 11S-21'. Notice of public hearings on the Plans to be held by the City was also sent to the school district and county as required by the Acts. 1.07 This Council has fully reviewed the contents of the Plans and has this date conducted a public hearing thereon at which the views of all interested persons were heard. Section 2. Findings; Redevelopment Projects; Modified Plans. 2.01 it is hereby found and determined that within the Project there exist conditions of physical deterioration, economic obsolescence and unsafe, unsanitary and other poor housing used or intended to be used for living which are injurious to the health, safety, morals and welfare of the citizens of this community. 2.02 It is further specifically found and determined that: a.) The property in the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Plans; b.) The modified Redevelopment Plans for the Project will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the Project by. private enterprise; and c.) The modified Redevelopment Plans conform to the general redevelopment plan of the City as set forth in the comprehensive municipal plan. 2.03 The findings in this section are made in compliance with Section 469.08, subdivision 2 of the mousing and Redevelop- ment Authorities Act for the purpose of showing the City's intent to exercise, in conjunction with the Authority, the powers granted to the city and the Authority by the Act. 88839940 80125-41 2 q,5 • Section 3. Findings; Tax Increment'Financina Districts "A 1" and 118 1", Modified Plans. 3.01 It is hereby found that the modified Plans for Tax Incre- ment Financing Districts "A-1" and "B-1" are necessary to permit.development and improvement of the Project Areas to their full potential. 3.02 The modified Plans for Tax Increment Financing Districts "A-1" and "B-1" are consistent with the modified Plans for the Project Areas. 3.03 The modified Plans for Tax Increment Financing Districts "A-11' a d " " n B-1 are consistent with the general plans for the development of the Cit as h y a w ole. Section 4. Findings, Tax Increment Financina Districts "A-211 and 4.01 Tax Increment Financing Districts "A-2" and "B-211, which are hereb est blis y a hed in the Project Areas, are redevelop- ment Tax Increment Financing Districts withi n the meaning of Section 469.174, subd. 10(a)(1) of the TIF Act. 4.02 It is found and determined that it is necessary and desirable to the sound and orderly develo ment a d p n redevel- opment of the Project Areas and the City as a whole and for the , protection and preservation of the public health, safety and general welfare that th e authority of the TIF Act be exercised by the Authority and the Cit to b y provide pu lic financial assistance within the Project Areas. 4.03 It is further found and determined, and it is the reasoned opinion of the Authority and th e City, that the redevelop- ment proposed in the Plans for Tax Increment Financing District " - " " s A 2 and B-2" could not reasonably be expected to occur solely through private investment within the reasonable foreseeable future and that therefore the use of tax i ncrement financing is necessary. 4.04 The Plans for Tax Increment Financing Districts "A-2" and "B-2" conform to the general plan for redevelopment of the City as a whole. 4.05 The proposed public improvements to be financed largely through tax increment financing are ne cessary to permit the City to realize the full potential of the Project Areas i ter n ms of development intensity, employment opportunities and tax base. Section 5. Plans Modified. Districts Established- Certifica- tion; Fil? nQ ,? , . 5.01 The Plans are hereby approved and adopted. RM39940 r k RC125-41 3 4-(o r? LJ 5.02 The geographic boundaries of Redevelopment Project Areas "A" and "B" and the TIP districts are as described in the Plans, which documents are hereby adopted by reference. No changes have been made in the geographic boundaries of the Project Areas or in Tax Increment Financing Districts "A-1" or "a-1" as a result of the Plans hereby approved. 5.03 A copy of the staff report and findings, which was the basis upon which the Authority and City concluded that Tax Increment Financing Districts "A-2" and "B-2" qualified as redevelopment tax increment financing districts shall be retained by the Authority for the duration of the TIP districts. . 5.04 The Authority is requested to file a copy of the Plana with the Minnesota commissioner of revenue as required by the TIF Act. 5.05 The Authority intends to request that the City assist from time to time in financing the public redevelopment costs identified in the TIF Plans by a loan payable from capital proceeds from land sale and tax increment from the TIF districts, and other revenues. 5.05 The Authority intends to pay interest on the borrowed funds if the cash flow from the TIF districts is sufficient after the payment of principal. 5.07 The Authority also intends to request that the City from time to time consider various other actions necessary to the implementation of the Plans and pledges its cooperation with the City in achieving the objectives of the Plans. 5.09 The City Clerk is authorized and directed to transmit a certified copy of this resolution to the Authority. Passed this day of , 1992 by the City Council of the City of Richfield, Minnesota. ATTEST: Thomas P. Ferber, City Clerk RM39940 RC12S-41 Mar in Kirsch, Mayor 4 • ACTIVITY HRA Meeting Review Redevelopment Plan Tax Increment Finance Plan (TIF) Expanded Program Elements Request of Planning Commission Find Redevelopment and TIF Plans in conformance with Comprehensive Plan including acquisition and disposition of real estate RICHFIELD REDISCOVERED; 1992 TIME AND EVENTS SCHEDULE TIME FRAME July 20, 1992 Request City Council to hold public hearing and approve Plans 0 Planning Commission Meeting Findings regarding Plan Conformance (See above) HRA Meeting July 28, 1992 August 17, 1992 Authorize entering into agreements to purchase with sellers, contingent on City Council Public Hearing and plan approval City Council Public hearing on Redevelopment and TIF Plans and consideration of proposal to approve the Plans. HRA Authorization Purchase Property Sell Property Developer Agreement Construction Start (120 day construction period per house). August 24, 1992 Starting in October, 1992 and continuing until sites are purchased and sold Last quarter of 1992 continuing into 1993 y-g Richfield Rediscovered • Redevelopment and Tax Increment Plans Summary The activities will be conducted from within two redevelopment projects known as Redevelopment Project Area "A" and Redevelopment Project Area "B" (see page 24 in document A or page 24 in document B for a map both of which are the same. These areas were established in 1990.) Each redevelopment project area will have a tax increment district, Tax Increment Redevelopment District "A-2" and Tax Increment Redevelopment District "B-2" respectively. Each district will be composed of any of the 32 parcels on which redevelopment takes place. They are listed on pages 3 and 10 in "A" documents (20 parcels) and pages 3 and 10 in the "B" documents (12 parcels). The only parcels which could become part of district "A-2" and "B-2", would be those listed. No property will be purchased by the HRA which is not listed. Although all the owners of property listed expressed interest in selling, it is likely that negotiations will not be satisfactorily concluded with all the owners. Thus, not all property listed will be purchased. The balance of the Plan documents are similar to those previously reviewed and approved by the HRA and City Council for this program. A few of the more significant features of the documents are briefly identified as follows. • Because the activities in each project area are the same, the documents for Redevelopment Project Area "A" and "B" are the same except the "Description of the Redevelopment Project Area" (boundary description); and "Acquisition and Relocation Activities" (list of properties to be considered for purchase). The documents for Tax Increment Redevelopment Districts ".A-2" and "'B-2" are the same except for "Parcels in Acquisition" (list of properties to be considered for purchase), "Original Tax Capacity", "Estimated Captured Tax Capacity" and the "Appendices". Objectives are listed on page 7 of the "A" document. They are the same in all documents. The budgets for each project area appear in the Appendices and total $1,142,900 for project "A-2" page 27. The budget assumes the HRA would purchase all 20 properties in the plan. However, only four would be purchased in Phase II. For project "B-2", the budget totals $633,900 on page 27. However, only five of the 12 properties would be purchased in Phase II. The proposal is to create two TIF redevelopment districts with a 25 year life. The increment captured by the two districts would be that generated from the property on which new homes were constructed. No bonds would be issued. A perusal of the Table of Contents in plan document "A" pages i-v and plan document "B" pages i will reveal a full listing of all topics. ?(- 9 The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 1 To The Redevelopment Plan for Redevelopment Project Area "A" Modification No. 1 To The Tax Increment Financing Plan for Tax Increment Redevelopment District "A-1 " Tax Increment Financing Plan for Tax Increment Redevelopment District "A-2" All Related To The Richfield Rediscovered Housing Program Dated: July 20, 1992 PREPARED BY. The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 (612) 861-9760 /b • MAYOR MARTIN J. KIRSCH CITY COUNCIL William Bullock Ivan Ludeman Michael Sandahl Kristal Stokes E HOUSING AND REDEVELOPMENT AUTHORITY Thomas Harms, Chair Joan He/mberger Ivan Ludeman Vern Luettinger Larry Wozniczka CITY MANAGER/EXECUTIVE DIRECTOR James D. Prosser 'f-// • PLANNING COMMISSION William Snyder, Chair Nancy Edwardson Robert Elliott Timothy Erlander Michael Gallagher Danial Linnihan Morris Nilsen, ll Thomas Scaglia David Sumnicht CITY STAFF • Byron Wallace Director, Community Development John Dean HRA Attorney Ronald Batty HRA Attorney Bruce Palmborg Housing & Redevelopment Coordinator Bruce Nordquist Housing Supervisor Catherine Jones Housing Specialist Kathy Jablonsky Redevelopment Specialist • TABLE OF CONTENTS Part 1. Modification No. 1 Redevelopment Plan for Redevelopment Project Area "A" Note To Reader A. Statement of Public Purpose B. Statutory Authority C. Description of Redevelopment Project Area. D. Statement of Goals and Objectives E. Development Activities and Agreements F. Proposed Land Use G. Acquisition and Relocation Activities H. Environmental Considerations I. Redevelopment Plan Modification. J. Administration of Redevelopment Project Original Modification Plan NO. 1 Page No. Page No. --- (vi) 1 --- 1 --- 2 --- 3 --- 4 1 6 2 6 2 7 --- 7 --- 7 --- (i) TABLE OF CONTENTS Part Il. Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A-1 " Original Modification Plan No.1 Page No. Page No. A. Statutory Authority 9 B. Statement of Objectives 9 --- C. Development Program 9 --- D. Description of Property in the Tax Increment Financing District 10 5 E. Classification of the Tax Increment Financing District 10 --- F. Parcels In Acquisition 12 5 G. Estimate of Costs 12 --- H. Estimated Amount of Obligated Funds. 13 --- I. Sources of Revenue 13 --- J. Original Tax Capacity 13 --- K. Estimated Captured Tax Capacity 14 L. Duration of the District 14 --- M. Estimated Impact on Other Taxing Jurisdictions. 14 --- N. Modifications of the Tax Increment Financing District 14 --- 0. Limitation on Administrative Expenses 14 --- P. Limitation on Duration of Tax Increment Financing Districts 15 --- • (ii) Original Modification 0 Plan No.1 Page No. Page No. Q. Limitation on Qualification of Property in Increment District not Subject to Improvement. 15 --- R. Limitation of the Use of Tax Increment 15 --- S. Notification of Prior Planned Improvements 16 --- T. Excess Tax Increments 16 --- U. Restrictions on Pooling; Five-Year Limit. 17 V. Assessment Agreements 18 --- W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account 19 --- X. Annual Disclosure Requirements. 19 --- Y. Assumptions 20 --- Z. Municipal Findings 20 --- Appendix A: Map: Redevelopment Project Area A 25 --- Appendix B: Property in the Tax Increment Redevelopment District "A-1" 27 6 Appendix C. Estimate of Tax Increments. 28 --- Appendix D: Tax Increment Financing Budget. 29 --- Appendix E. Estimate of Impacts on Other Taxing Jurisdictions 30 --- . (iii) Table of Contents Part Ill. Tax Increment Financing Plan for Tax Increment Redevelopment District "A-2" Page No. A. Statutory Authority 7 B. Statement of Objectives 7 C. Development Program 7 D. Description of Property in the Tax Increment Financing District 9 E. Classification of the Tax Increment Financing District 9 F. Parcels In Acquisition 10 G. Estimate of Costs 11 H. Estimated Amount of Obligated Funds. 11 I. Sources of Revenue 11 J. Original Tax Capacity 12 K. Estimated Captured Tax Capacity 12 L. Duration of the District 12 M. Estimated Impact on Other Taxing Jurisdictions. 13 N. Modifications of the Tax Increment Financing District 13 0. Limitation on Administrative Expenses 13 P. Limitation on Duration of Tax Increment Financing Districts 13 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement. 13 R. Limitation of the Use of Tax Increment 14 • • • (iv) Ll-l(, Page No. S. Notification of Prior Planned Improvements 14 T. Excess Tax Increments 15 U. Restrictions on Pooling; Five-Year Limit. 15 V. Assessment Agreements 17 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account 17 X. Annual Disclosure Requirements. 18 Y. Assumptions 18 Z. Municipal Findings 18 APPENDICES. 21 Appendix A: Map: Redevelopment Project Area "A" and "B" and Tax Increment Financing Districts "A-2" and "B-2". 23 Appendix B: Property in the Tax Increment Redevelopment District "A-2" 25 Appendix C. Estimate of Tax Increments. 26 Appendix D: Tax Increment Financing Budget. 27 Appendix E. Estimate of Impacts on Other Taxing Jurisdictions 28 (v) 41--17 NOTE TO READER The following text represents modification to the Richfield Rediscovered Housing Program, formerly known as the Expanded New Home - Scattered Site Housing Program. Changes to the Redevelopment Plan for Redevelopment Project Area "A" and Tax Increment Financing Plan for Tax Increment Financing District "A-1" are identified under the section titled Modification No. 1 to the Redevelopment Plan for Redevelopment Project Area "A" (Redevelopment Plan) and Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A-1" (Tax Increment Plan). Only those areas of the Redevelopment Plan and Tax Increment Plan requiring revision are incorporated in this first modification. The Tax Increment Financing Plan for Tax Increment District "A-2" (Tax Increment Plan) represents a new plan, not a modification. The modified Redevelopment Plan and the new Tax Increment Plan both represent a continuation of the goals and objectives set forth in the original Redevelopment Plan and Tax Increment Plan. Generally, the substantive changes to the housing program under the modification and new Tax Increment Plan include broadening the opportunity for program participation and identifying additional acquisition property. To understand all of the program modifications and proposed activities, a review of the original Redevelopment Plan, Tax Increment Plans, and other related documents, dated July 16, 1990, is recommended. • (vi) y,J v Part 1. Modification No. 1 Redevelopment Plan for Redevelopment Project Area "A" E. Development Activities and Agreements The objectives of this redevelopment plan will be accomplished pursuant to the authority granted to the HRA by the Housing and Redevelopment Authorities Act, Minn. Stat., Sec. 469.001, et seq. The following activities are appropriate for the area. Description of Anticipated Public Development Activities The anticipated public development activities in the redevelopment project area to be undertaken by the HRA and City in order to support the private development activities include: 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. Description of Anticipated Private Development Activities The private development activities within the project area which are anticipated to occur include: 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. -1- Any and all proposals for development and redevelopment will be reviewed by the HRA and City, when appropriate, to determine conformance with the redevelopment plan and applicable municipal ordinances and codes. Property acquired by the HRA will be subject to a contract for sale to an interested developer, builder, or buyer. The general requirements to be imposed upon an interested developer, builder, or buyer by the contract for sale are: 1. To redevelop the property purchased in accordance with this redevelopment plan; 2. To commence and complete the construction of improvements on the property within specified periods of time; 3. Not to resell the property before improvements are made without the prior consent of the HRA; and 4. Not to discriminate on the basis of age, race, color, sex, creed, or national origin on the sale, lease, transfer, or occupancy of the property purchased from the HRA. F. Proposed Land Use The current land uses in the redevelopment project area include the following: - Single family residential; - Apartment; - Duplex; - Commercial; - Parks; - Schools; - Vacant; - Public; - Quasi-public (e.g. churches, cemetery, nursing homes, private schools, and service organizations); and - Water. New uses will be restricted to single family residential. G. Acquisition and Relocation Activities 1. Acquisition As a means of comprehensively formulating Cycle II of the Richfield Rediscovered Housing Program, HRA staff recently undertook the following tasks to identify property for acquisition: a. Survey residential property owners that have, expressed interest in the voluntary sale of their property in Cycle II of the Richfield Rediscovered Housing Program. 7 • • -2- t1-2v b. Evaluate properties for program eligibility. The following property is identified for acquisition for Cycle II of the program: ADDRESS PID NUMBER 7500 Bryant Ave. 33-028-24-41-0106 7520 Bryant Ave. 33-028-24-41-0110 7528 Bryant Ave. 33-028-24-41-0112 6926 Chicago Ave. 26-028-24-33-0028 6608 Stevens Ave. 27-028-24-42-0073 6616 - 2nd Ave. 27-028-24-42-0064 6844 - 14th Ave. 26-028-24-43-0056 7112 - 1st Ave. 34-028-24-12-0096 7245 - 12th Ave. 35-028-24-13-0001 7525 Girard Ave. 33-028-24-42-0094 64634 4th A - ve. 27-028-24-41-0052 7021 Nicollet Ave. 34-028-24-12-0023 6310 - 15th Ave. 26-028-24-12-0077 6225 - 14th Ave. 26-028-24-12-0071 6825 Elliot Ave. 26-028-24-34-0085 6404 - 15th Ave. 26-028-24-13-0052 6525 - 15th Ave. 26-028-24-13-0110 7432 Aldrich Ave. 33-028-24-41-0026 6800 Portland Ave. 27-028-24-44-0001 7416 - 4th Ave. 34-028-24-41-0053 7025 Nicollet Ave. 34-028-24-12-0022 • -3- For Cycle II program purposes, the following Cycle I property is remov ed from the acquisition list. This property may be consider ed for program acquisition at some future date. ADDR ESS PID NUMBER 6351 Bloomington Ave. 26-028-24-11-0024 6332 15th Ave. 26-028-24-12-0083 6349 14th Ave. 26-028-24-12-0087 6325 15th Ave. 26-028-24-12-0114 6400 15th Ave. 26-028-24-13-0051 6507 Bloomington Ave. 26-028-24-14-0116 7435 Emerson Ave. 33-028-24-42-0014 7039 5th Ave. 34-028-24-11-0079 7216 1st Ave. 34-028-24-13-0094 • • -4- y z2 Part It. Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A-1 " D. Description of Property in the Tax Increment Financing District The property listed within Appendix B has been identified for removal from TIF District "A-1". This property may be considered for acquisition at some time in the future. F. Parcels in Acquisition The following property has been identified for removal from the acquisition list. This property may be considered for acquisition at some time in the future. PIN NUMBER ADDRESS 26-028-24-11-0024 6351 Bloomington Ave. So. 26-028-24-12-0083 6332 - 15th Ave. So. 26-028-24-12-0087 26-028-24-12-0114 26-028-24-13-0051 26-028-24-14-0116 33-028-24-42-0014 34-028-24-11-0079 34-028-24-13-0094 • 6349 - 14th Ave. So. 6325 - 15th Ave. So. 6400 - 15th Ave. So. 6507 Bloomington Ave. So. 7435 Emerson Ave. So. 7039 - 5th Ave. So. 7216 - 1st Ave. So. -5- APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A-1" The following property, known as Cycle I property and listed within the Tax Increment Finaning Plan for Tax Increment Financing District "A-2", is hereby removed from Tax Increment Financing District "A-1". The removal of this property is a program objective under Cycle II of the Richfield Rediscovered Housing Program, known as the Expanded New Home - Scattered Site Housing Program under the original Plan. This property may be considered for acquisition at some future date. ORIGINAL NET PIN NUMBER ADDRESS TAX CAPACITY* 26-028-24-11-0024 6351 Bloomington Ave. So. $ 547 26-028-24-12-0083 6332 - 15th Ave. So. $ 1,506 26-028-24-12-0087 6349 - 14th Ave. So. $ 1,458 26-028-24-12-0114 6325 - 15th Ave. So. $ 1,611 26 028 24 13 - - - -0051 6400 - 15th Ave. So. $ 513 26-028-24-14-0116 6507 Bloomington Ave. So. $ 541 33-028-24-42-0014 7435 Emerson Ave. So. $ 469 34-028-24-11-0079 7039 - 5th Ave. So. $ 528 34-028-24-13-0094 7216 - 1st Ave. So. $ 1,584 Total $ 8,757 *Original Net Tax Capacity for taxes payable in 1990. • -6- Part Ill. Tax Increment Financing Plan for Tax Increment Redevelopment District "A-2" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "A-2") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "A" (Project Area "A") for the Richfield Rediscovered Housing Program formerly known as the Expanded New Home - Scattered Site 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 seek to achieve the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "A", dated July 16, 1990. In addition to these goals and objectives, program objectives set forth in HRA Letter No. 13, dated April 20, 1992, are as follows: - Create a voluntary market for the purchase and removal of substandard, poor quality housing. - Provide sites for new homes by working closely with a qualified builder/buyer team. - Provide a continuing program presence which maintains the interest and market momentum already achieved. - Provide a financial structure which generates a sufficient cash flow to pay off principal and provide interest payments if funds are available. C. Development Program 1. Description of Development Activities On January 16, 1990, the HRA adopted a motion directing staff to proceed with the formulation of the Expanded New Home Program. On April 20, 1992, the HRA passed a motion to authorize continuation of this program, currently named the Richfield Rediscovered Housing Program. A survey of purchasers of new homes involved in the original housing program (Cycle I) provided information on the success -7- 41 of the program. The following observations were made with respect to Cycle I and addressed in HRA Letter No. 13: a. The program has met the needs of various buyers which include young families, empty nesters, singles, move- up buyers, and first-time home buyers. b. The permanent bedroom count added to the housing supply in the city is 25. c. Relatively few school-aged children are involved with the newly acquired housing units. Therefore, confidence exists that the increase in dwelling unit size will result in a new increase in school-aged children when all the new units are occupied. d. During the first quarter of 1992, approximately 60 sellers and 15 buyers have indicated interest in participating in a continued program. Sellers, builders, and buyers continue to contact HRA staff to indicate program interest and participation. As with Cycle I of the program and so with Cycle II, a comprehensive, integrated approach for acquisition, site clearance, and new construction was formulated and 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 Currently, there are no development contracts. 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project. 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; • -8- Z?j > ?- 5. Remedial site environmental activities; and 6. Adjacent public improvements and utilities which service site. For Cycle II of the Housing Program, a total of 32 properties have been identified for program participation and acquisition. Twenty one (21) of the properties are located within Redevelopment Project Area "A" while the remaining eleven (11) are within Redevelopment Project Area "B". (Refer to Appendix A for map of redevelopment project areas and tax increment parcels.) Redevelopment Project Area A contains one property with a double lot. A property subdivision will be required in order to construct two homes on site. Initial construction for Cycle II is anticipated to begin in the last quarter of 1992. 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 Tax Increment Financing District Property located within TIF District "A-2" is identified in Appendix B. E. Classification of the Tax 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-2" 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 detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle II" 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. • -9- ?a7 F. Parcels in Acquisition The following property has been identified for acquisition in Cycle II of the Housing Program: ADDRESS PID NUMBER 7500 Bryant Ave. 33-028-24-41-0106 7520 Bryant Ave. 33-028-24-41-0110 7528 Bryant Ave. 33-028-24-41-0112 6926 Chicago Ave. 26-028-24-33-0028 6608 Stevens Ave. 27-028-24-42-0073 6616 - 2nd Ave. 27-028-24-42-0064 6844 - 14th Ave. 26-028-24-43-0056 7112 - 1st Ave. 34-028-24-12-0096 7245 - 12th Ave. 35-028-24-13-0001 7525 Girard Ave. 33-028-24-42-0094 6634 - 4th Ave. 27-028-24-41-0052 7021 Nicollet Ave. 34-028-24-12-0023 6310 - 15th Ave. 26-028-24-12-0077 6225 - 14th Ave. 26-028-24-12-0071 6825 Elliot Ave. 26-028-24-34-0085 6404 - 15th Ave. 26-028-24-13-0052 6525 - 15th Ave. 26-028-24-13-0110 7432 Aldrich Ave. 33-028-24-41-0026 6800 Portland Ave. 27-028-24-44-0001 7416 - 4th Ave. 34-028-24-41-0053 7025 Nicollet Ave. 34-028-24-12-0022 is removed from the considered for acquisition at some future date. For Cycle II program purposes,'the following Cycle I property 9 acquisition list. This property may be -10- Ll- - ? ') ? -. 5/ • ADDRESS 6351 Bloomington Ave. 6332 15th Ave. 6349 14th Ave. 6325 15th Ave. 6400 15th Ave. 6507 Bloomington Ave. 7435 Emerson Ave. 7039 5th Ave. 7216 1st Ave. PID NUMBER 26-028-24-11-0024 26-028-24-12-0083 26-028-24-12-0087 E • 26-028-24-12-0114 26-028-24-13-0051 26-028-24-14-0116 33-028-24-42-0014 34-028-24-11-0079 34-028-24-13-0094 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, an additional $500,000 is available under Cycle II to continue the housing program. Repayment of these funds will be through the use of tax increment financing and other sources of revenue, if any, available to the HRA and City. 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. A projected cashflow analysis of the overall program reveals that interim program funding could potentially be repaid with interest if sufficient tax increment receipts are available, and housing values appreciate. 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 tax increment. In addition to the tax increment -11- revenue, other sources of revenue potentially available to the HRA and City may be utilized. J. Original Tax 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-2" is based on the January 2, 1992 assessed value placed on the property by the county assessor. The OTC for the district is $15,074. (See Appendix B, Property Located in Tax Increment Financing District "A-2".) 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 increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; or 3. Change due to stipulations, adjustments, negotiated or court-ordered abatements. K. Estimated Captured Tax 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 the tax increment district is within a range of $135 to $782 per home. The total CTC for 21 new homes within the project area ranges from $2,835 to $16,422. 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. • -12- y 3e M. Estimated Impact on Other Taxing Jurisdictions Refer to Appendix E, Estimate of Impacts on Other Taxing Jurisdictions. N. Modifications of the Tax 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. 0. Limitation on Administrative Expenses 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 Tax 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 by the county auditor. 0. Limitation on Qualification of Property in Tax 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 -13- _--_31 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 that parcel shall be-excluded from 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 on the Use of Tax 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 which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the City. • • • -14- T. Excess Tax 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 In accordance with Minn. Stat., Sec. 469.1763, the following terms have the meanings given: "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, -15- or (2) the municipality or the development authority or other person substantially under the control of the municipality. 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 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), 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-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. -16- fir, 3 ?1 (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 land and completed improvements for the duration 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 are to be constructed and so long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tax Increment District and Maintenance of the Tax 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. -17- X. Annual Disclosure Requirements Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before March 1 of each year, the HRA must annually report to the commissioner of revenue the following: 1. Total principal amount of nondefeased tax increment financing bonds that are 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: 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 -18- 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 II" 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, formerly known as the Expanded New Home - Scattered Site Housing Program for the development, redevelopment, new construction and other related improvements of -19- 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. • • -20- APPENDICES Richfield Rediscovered Housing Program Redevelopment Project Area "A" and Tax Increment Financing District "A-2" • • -21- 5,7 (Intentionally Left Blank) 0 • -22- /-/-, qo 0 APPENDIX A MAP REDEVELOPMENT PROJECT AREA "A" AND "B" AND TAX INCREMENT FINANCING DISTRICTS "A-2" AND "B-2" • • -23- k L G K K Z 2 t ? t ! t NswNVlc ?O? •,': [ I UCH O JIM - : ------ ? '31v won _ ufI' L.???? - r1/1? P-J000000? O??UCI - lots, ? rill Y1`1 *lot p? Zi OLD ?oO No il"00uf OOOL?OC? 4191 O?oO L? 000 1411 ©© 00 ----- 00 DO OCIC?lOO o X1 00 f." N,1.NIwKU, rl to r,„ M ?OOO0oo0 O1 00[ 41 .1t. 71 000 ? O[ ? o ? ..:1 r ? d 0?0 i 4101li on r''? i IS r. 01 101T1 'I O Q) o0J ?? N c avawa I C O < 000 ,1 j 101117 09va1Na wwrifl 61 ,. oom o00 NNW --? 0?0 Coo I d tMwMDa YYq a Cr-?C] ONVIMO I r :._ 000 71M ONlflllwr 1 '1M ONIr11Y0/ /'?\ ICJ ?' tlf !.1 NOIM11a 01?? O 0o O .,. NI'V3 .f D DO O "` Cl) a 0 N3 7N3A71t N3 _ O O ???0? O N 1 ? ) __ lJ? B ? ? ' fN3A71f I h?-?i - II - '3AV 131103101 r r??[ ? T3GttVts I I ao O 1 O?B 0 N1YOw1N3w 1. O - 0 000 C_1 'aAV 1711WIN T30tIV1O wi>jowaM3w iY L-J L-y_5 U ! U ?+ AYwMTI? JNIII O _ ------ QO •?.c'+A-- ©('?O? ?OI i II . - r v - - _ El VfV714 i d OQ r._. ON11Y9 l r I ?- -'- AYf1Khy 1NVM-W ON?Yf r J C?! -"771 i ? -? 131YYYN 11 ?1 ?? ?BBGJ i 0 1711Y19 ?I l\II 1 1 I ' P LNYYVN 0171IYYf I '3Af 71fOMAl \ ® 1 1r01v Na 1NVAVV I [ III • i ??/ ? O 1 Nu19a 11 n 7AV 71VOMA1 1NVAM :viwa NK 1M 0 \ 04 NOf l O n 1110odna Y w3 1rNNUr1 ? - mosmana j _ -- - ' amms - ' DIMAd , 10106"AN u[?f'STr1 -u? sN1AY1 ^ I - --- ???? nwvr :J000 I - *ovrro lOioswnN fN1AY1 1 // p ??JIGS I? q /?? W i NOUN -- - 000 '- - -- OOC70 -- »o0ouo00c- l slave :9NY O 1111101 n on N11r9w ooCn oo°O° INIrOYGN .?+ f? o o NCIA43" 7AV NM 31 _- 'I .. 1 ?UU _JLJLJI? NOlw7N Y7A1lp ' ? I_ 1, N33n0 OJl Nv01N7Nf ?P m I? -jC 0 f.w9N1 LJ 7AV MN7/ M3311D «.a ?t fvw.Nl Al V/ r m0Adn N J LNnMIA (`' .. _ JL___J I _J ?'?I Q I' Ij. /?(L? _?7I _ I f ) YYMMifw rtf ? if '/ ( - I ?? I ? M01ln 1033N1A MYMNCVw r? O O Y? ---1I•-'? O '7AV t7 %Y all ?....._.....:. I.. _.{i: ... F d a - ` S M F K IA G Nr N M G M M S 3AV 63%Y3% ELI W ?? Z i ^ Y ? = S .= w w : X w R 1 m - -24- y_ y-Z? APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A-2" ORIGINAL NET ADDRESS PID NUMBER TAX CAPACITY 7500 Bryant Ave. 33-028-24-41-0106 $ 1,882 7520 Bryant Ave. 33-028-24-41-0110 428 7528 Bryant Ave. 33-028-24-41-0112 441 6926 Chicago Ave. 26-028-24-33-0028 410 6608 Stevens Ave. 27-028-24-42-0073 360 6616 2nd Ave. 27-028-24-42-0064 514 6844 14th Ave. 26-028-24-43-0056 498 7112 1st Ave. 28-028-24-12-0096 1,431 7245 12th Ave. 35-028-24-13-0001 522 7525 Girard Ave. 33-028-24-42-0094 565 6634 4th Ave. 27-028-24-41-0052 488 7021 Nicollet Ave. 34-028-24-12-0023 535 6310 15th Ave. 26-028-24-12-0077 1,277 6225 14th Ave. 26-028-24-34-0071 1,011 6825 Elliot Ave. 26-028-24-34-0085 606 6404 15th Ave. 26-028-24-13-0052 482 6525 15th Ave. 26-028-24-13-0110 595 7432 Aldrich Ave. 33-028-24-41-0026 497 6800 Portland Ave. 27-028-24-44-0001 610 7516 4th Ave. 34-028-24-41-0053 679 7025 Nicollet Ave. 34-028-24-12-0022 1,243 TOTAL $15,074 -25- APPENDIX C ESTIMATE OF TAX I NCREMENTS FOR TAX INCREMENT FINANCING DISTRICT "A-2" ... .... RANGE ....... A. VALUE OF NEW CONSTRUCTION P er Home Per Home Construction Cost (Land & Bldg) $ 85,000 $120,000 x Sales Ratio 92.50% 92.50% Estimated Market Value -- $ ------- 78,625 --------- $111,000 B. TAX INCREMENT VALUE Estimated Market Value $ 78,625 $111,000 x Tax Capacity Ratio (Class 1A; Prop. Type R-Hmstd) 1.00% $72,000 $ 720 $ 720 2.00% $43,000 133 780 2.50% Balance 0 0 New Tax Capacity $ 853 $ 1,500 - Original Net Tax Capacity (Avg.) (718) (718) Captured Net Tax Capacity $ 135 ---- $ 782 x Tax Capacity Rate (1992) 120.944$ 120.944% Annual Tax Increment -- $ ------- 163 --------- $ 946 x 21 Homes - Total Annual Tax $ 3,429 $ 19,861 Increment C. ESTIMATE OF AD VALOREM PROPERTY TAXES Estimated Market Value $ 78,625 $111,000 x Tax Capacity Ratio (Class 1A; Prop. Type R-Hmstd) 1.00% $72,000 $ 720 $ 720 2.00% $43,000 $ 133 $ 780 2.50% Balance $ 0 $ 0 New Tax Capacity -- $ ------- 853 --------- $ 1,500 x Tax Capacity Rate 120.944% 120.944% Annual Ad Valorem Taxes (per home) -- $ ------- 1,032 --------- $ 1,814 x 21 Homes - Total Annual Ad $21,672 $ 38 094 Valorem Taxes , -26- Z/, 4/L? APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "A-2" Property Acquisition $ 1,067,400 Appraisals $ 6,825 Demolition/Site Clearance $ 105,000 Legal Expenses $ 5,000 TOTAL GROSS EXPENDITURE $ 1,184,225 *This budget reflects the purchase by the HRA of all 21 Cycle II properties located within Tax Increment Financing District "A-2". 0 -27- -// cLr APPENDIX E ESTIMATE OF IMPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "A-2" The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District "A-2". If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred without the assistance of the City, the estimated impact of Tax Increment Financing District "A-2" would be as follows if the "but for" test (see Section Z. Municipal Findings, page 18 of the Plan) was not met: IMPACT ON TAX BASE ENTITY'S TOTAL NET TAX CAPACITY ..............RANGE MINIMUM............... CAPTURED % OF CAPTURED TAX TAX CAPACITY TO CAPACITY ENTITY TOTAL ENTITY City of Richfield Hennepin County School Distr. #280 $ 23,097,324 1,004,056,028 21,745,830 $ 2,835 0.0123 2,835 0.0003 2,835 0.0130 ENTITY City of Richfield Hennepin County School Distr. #280 ..............RANGE MAXIMUM............... ENTITY'S CAPTURED % OF CAPTURED TOTAL NET TAX TAX CAPACITY TO TAX CAPACITY CAPACITY ENTITY TOTAL $ 23,097,324 $ 16,422 0.0711 1,004,056,028 16,422 0.0016 21,745,830 16,422 0.0755 The estimates listed in the following table tax capacity when all construction is completed. and tax capacities are the payable 1992 figures jurisdictions. Tax Increment Financing District display captured The tax rates for all "A-2" is • C] • -28- y ?fG anticipated to be certified under rates for payable 1993 or later as the acquisition of property progresses. The tax rate increase column is the estimate of the amount the tax rate of each jurisdiction would theoretically have to increase to raise the taxes listed in the potential taxes column. In addition, the impact on School District No. 280 does not included the effect of state aids for education upon school district funding. IMPACT ON TAX RATES ..............MINIMUM IMPACT.............. CURRENT CAPTURED POTENTIAL TAX RATE TAX RATE TAX CAPACITY TAXES INCREASE ENTITY City of Richfield 0.22953 $ 2,835 $ 651 0.028 Hennepin County 0.34327 $ 2,835 $ 973 0.001 School Distr. #280 0.57013 $ 2,835 $ 1,616 0.074 Miscellaneous 0.05996 $ 2,835 $ 170 0.000 ..............MAXIMUM IMPACT.............. CURRENT CAPTURED POTENTIAL TAX RATE TAX RATE TAX CAPACITY TAXES INCREASE ENTITY City of Richfield 0.22953 $ 16,422 $ 3,769 0.163 Hennepin County 0.34327 $ 16,422 $ 5,637 0.006 School Distr. #280 0.57013 $ 16,422 $ 9,363 0.431 Miscellaneous 0.05996 $ 16,422 $ 985 0.001 • -29- ?' e E The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 1 To The Redevelopment Plan for Redevelopment Project Area "B" Modification No. 1 To The Tax Increment Financing Plan for Tax Increment Redevelopment District "B-1 " Tax Increment Financing Plan for Tax Increment Redevelopment District "B-2" All Related To The Richfield Rediscovered Housing Program Dated: July 20, 1992 PREPARED BY. The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 (612) 861-9760 Y,vt • MAYOR MARTIN J. KIRSCH CITY COUNCIL William Bullock Ivan Ludeman Michael Sandahl Kristal Stokes • HOUSING AND REDEVELOPMENT AUTHORITY Thomas Harms, Chair Joan He/mberger Ivan Ludeman Vern Luettinger Larry Wozniczka CITY MANAGER/EXECUTIVE DIRECTOR James D. Prosser 0 V-Ll? • PLANNING COMMISSION William Snyder, Chair Nancy Edwardson Robert Elliott Timothy Erlander Michael Gallagher Danial Linnihan Morris Nilsen, ll Thomas Scaglia David Sumnicht CITY STAFF • Byron Wallace Director, Community Development John Dean HRA Attorney Ronald Batty HRA Attorney Bruce Pa/mborg Housing & Redevelopment Coordinator Bruce Nordquist Housing Supervisor Catherine Jones Housing Specialist Kathy Jablonsky Redevelopment Specialist 0 ( / - J-Z) TABLE OF CONTENTS Part 1. Modification No. 1 Redevelopment Plan for Redevelopment Project Area "B" Note To Reader A. Statement of Public Purpose B. Statutory Authority C. Description of Redevelopment Project Area. D. Statement of Goals and Objectives E. Development Activities and Agreements 10F. Proposed Land Use G. Acquisition and Relocation Activities H. Environmental Considerations I. Redevelopment Plan Modification. J. Administration of Redevelopment Project 1-1 Original Modification Plan No.1 Page No. Page No. --- (vi) 33 --- 33 --- 34 --- 35 --- 36 1 38 2 38 2 39 --- 39 --- 39 --- (i) TABLE OF CONTENTS Part ll. Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B-1 " Original Modification Plan No.1 Page No. Page No. A. Statutory Authority . B. Statement of Objectives C. Development Program . D. Description of Property in the Tax Increment Financing District E. Classification of the Tax Increment Financing District F. Parcels In Acquisition G. Estimate of Costs H. Estimated Amount of Obligated Funds. 1. Sources of Revenue J. Original Tax Capacity K. Estimated Captured Tax Capacity L. Duration of the District . M. Estimated Impact on Other Taxing Jurisdictions. N. Modifications of the Tax Increment Financing District 0. Limitation on Administrative Expenses P. Limitation on Duration of Tax Increment Financing Districts . 41 --- 41 --- 41 --- 42 5 42 --- 44 5 44 --- 44 --- 44 --- 45 --- 45 --- 45 --- 45 --- 46 --- 46 --- 46 --- • • • (ii) Q. Limitation on Qualification of Property in Increment District not Subject to Improvement. R. Limitation of the Use of Tax Increment S. Notification of Prior Planned Improvements T. Excess Tax Increments U. Restrictions on Pooling; Five-Year Limit. V. Assessment Agreements W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account X. Annual Disclosure Requirements. Y. Assumptions Z. Municipal Findings _5 Original Modification Plan No.1 Page No. Page No. 46 --- 47 --- 47 --- 48 --- 48 --- 50 --- 50 --- 51 --- 51 --- 51 --- Appendix A: Map: Redevelopment Project Area A 57 --- Appendix B: Property in the Tax Increment Redevelopment District "B-1" 59 6 Appendix C: Estimate of Tax Increments. 60 --- Appendix D: Tax Increment Financing Budget. 61 --- Appendix E. Estimate of Impacts on Other Taxing Jurisdictions 62 --- 0 (iii) A5?4---s"3 Table of Contents Part Ill. Tax Increment Financing Plan for Tax Increment Redevelopment District "B-2" Page No. A. Statutory Authority 7 B. Statement of Objectives 7 C. Development Program 7 D. Description of Property in the Tax Increment Financing District 9 E. Classification of the Tax Increment Financing District 9 F. Parcels In Acquisition 10 G. Estimate of Costs 10 H. Estimated Amount of Obligated Funds. 10 I. Sources of Revenue 11 J. Original Tax Capacity 11 K. Estimated Captured Tax Capacity 12 L. Duration of the District 12 M. Estimated Impact on Other Taxing Jurisdictions. 12 N. Modifications of the Tax Increment Financing District 12 0. Limitation on Administrative Expenses 12 P. Limitation on Duration of Tax Increment Financing Districts 13 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement. 13 R. Limitation of the Use of Tax Increment 13 (iv) Page No. S. Notification of Prior Planned Improvements 14 T. Excess Tax Increments 14 U. Restrictions on Pooling; Five-Year Limit. 15 V. Assessment Agreements 16 W. Administration of the Tax Increment Financing District .and Maintenance of the Tax Increment Account 17 X. Annual Disclosure Requirements. 17 Y. Assumptions 18 Z. Municipal Findings 18 APPENDICES. 21 Appendix A: Map: Redevelopment Project Area "A" and "B" and Tax Increment Financing Districts "A-2" and "B-2". 23 0 Appendix B: Property in the Tax Increment Redevelopment District "B-2" 25 Appendix C: Estimate of Tax Increments. 26 Appendix D: Tax Increment Financing Budget. 27 Appendix E. Estimate of Impacts on Other Taxing Jurisdictions 28 0 (v) 4 -S,s, NOTE TO READER The following text represents modification to the Richfield Rediscovered Housing Program, formerly known as the Expanded New Home - Scattered Site Housing Program. Changes to the Redevelopment Plan for Redevelopment Project Area "B" and Tax Increment Financing Plan for Tax Increment Financing District "B-1" are identified under the section titled Modification No. 1 to the Redevelopment Plan for Redevelopment Project Area "B" (Redevelopment Plan) and Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B-1" (Tax Increment Plan). Only those areas of the Redevelopment Plan and Tax Increment Plan requiring revision are incorporated in this first modification. The Tax Increment Financing Plan for Tax Increment District "B-2" (Tax Increment Plan) represents a new plan, not a modification. The modified Redevelopment Plan and the new Tax Increment Plan both represent a continuation of the goals and objectives set forth in the original Redevelopment Plan and Tax Increment Plan. Generally, the substantive changes to the housing program under the modification and new Tax Increment Plan include broadening the opportunity for program participation and identifying additional acquisition property. To understand all of the program modifications and proposed activities, a review of the original Redevelopment Plan, Tax Increment Plans, and other related documents, dated July 16, 1990, is recommended. • • • (vi) _11 s-e, 0 Part L Modification No. 1 Redevelopment Plan for Redevelopment Project Area "B" E. Development Activities and Agreements The objectives of this redevelopment plan will be accomplished pursuant to the authority granted to the HRA by the Housing and Redevelopment Authorities Act, Minn. Stat., Sec. 469.001, et seq. The following activities are appropriate for the area. Description of Anticipated Public Development Activities The anticipated public development activities in the redevelopment project area to be undertaken by the HRA and City in order to support the private development activities include: 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. Description of Anticipated Private Development Activities The private development activities within the project area which are anticipated to occur include: 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. -1- S7 Any and all proposals for development and redevelopment will be reviewed by the HRA and City, when appropriate, to determine conformance with the redevelopment plan and applicable municipal ordinances and codes. Property acquired by the HRA will be subject to a contract for sale to an interested developer, builder, or buyer. 'The general requirements to be imposed upon an interested developer, builder, or buyer by the contract for sale are: 1. To redevelop the property purchased in accordance with this redevelopment plan; 2. To commence and complete the construction of improvements on the property within specified periods of time; 3. Not to resell the property before improvements are made without the prior consent of the HRA; and 4. Not to discriminate on the basis of age, race, color, sex, creed, or national origin on the sale, lease, transfer, or occupancy of the property purchased from the HRA. F. Proposed Land Use The current land uses in the redevelopment project area include the following: 0 - Single family residential; - Apartment; - Duplex; - Commercial; - Parks; - Vacant; - Quasi-public (e.g. churches, cemetery, nursing homes, private schools, and service organizations); and - Water. New uses will be restricted to single family residential. G. Acquisition and Relocation Activities 1. Acquisition As a means of comprehensively formulating Cycle II of the Richfield Rediscovered Housing Program, HRA staff recently undertook the following tasks to identify property for acquisition: a. Survey residential property owners that have expressed interest in the voluntary sale of their property in Cycle II of the Richfield Rediscovered Housing Program. -2- ,//, ? Y' b. Evaluate properties for program eligibility. The following property is identified for acquisition for Cycle II of the program: ADDRESS PID NUMBER 6641 Oliver Ave. 28-028-24-32-0045 6924 Newton Ave. 28-028-24-33-0073 6539 Oliver Ave. 28-028-24-23-0092 7124 Washburn Ave. 32-028-24-12-0073 6645 Upton Ave. 29-028-24-42-0015 1908 West 66th St. 28-028-24-23-0125 2916 West 71 1/2 St. 32-028-24-12-0072 6300 Aldrich Ave. 28-028-24-11-0041 6912 Oliver Ave. 28-028-24-33-0053 7015 Penn Ave. 33-028-24-22-0003 7021 Penn Ave. 33-028-24-22-0004 For Cycle II program purposes, the following Cycle I property is being removed from the acquisit ion list. This property may be considered for acquisition at some future date. ADDRESS PID NUMBER 6300 Aldrich Ave.* 28-028-24-11-0041 *Subject property at 6300 Ald rich Avenue is being moved to the Cycle II acquisition list. • -3- y- 5-7 (Intentionally Lett Blank) E • • -4- 2/, V/ " 0 Part lI. Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B-1 " D. Description of Property in the Tax Increment Financing District The property listed within Appendix B has been identified for removal from TIF District "B-1". This property is being moved to TIF District "B-2". Also see Appendix B for additional descriptive program information. F. Parcels in Acquisition The following property has been identified for removal from the acquisition list. This property is hereby moved to the Cycle II acquisition list. See Appendix B for additional descriptive program information. PIN NUMBER ADDRESS 28-028-24-11-0041 6300 Aldrich Ave. So. • -5- y 61 APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-1" The following property, known as Cycle I property within the Tax Increment Finaning Plan for Tax Increment Financing District "B- 2", is removed from Tax Increment Financing District "B-1". The removal of this property is a program objective under Cycle II of the Richfield Rediscovered Housing Program, known as the Expanded New Home - Scattered Site Housing Program under the original Plan. The property will be part of TIF District "B-2" and the related acquisition list. ORIGINAL NET PIN NUMBER ADDRESS TAX CAPACITY* 28-028-24-11-0041 6300 Aldrich Ave. So. $ 518 • *Original Net Tax Capacity for taxes payable in 1990. -6- l`_ G y • Part Il. Tax Increment Financing Plan for Tax Increment Redevelopment District "B-2" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "B-2") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "B" (Project Area "B") for the Richfield Rediscovered Housing Program formerly known as the Expanded New Home - Scattered Site 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 seek to achieve the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "B", dated July 16, 1990. In addition to these goals and objectives, program objectives set forth in HRA Letter No. 13, dated April 20, 1992,.are as follows: - Create a voluntary market for the purchase and removal of substandard, poor quality housing. - Provide sites for new homes by working closely with a qualified builder/buyer team. - Provide a continuing program presence which maintains the interest and market momentum already achieved. - Provide a financial structure which generates a sufficient cash flow to pay off principal and provide interest payments if funds are available. C. Development Program 1. Description of Development Activities On January 16, 1990, the HRA adopted a motion directing staff to proceed with the formulation of the Expanded New Home Program. On April 20, 1992, the HRA passed a motion to authorize continuation of this program, currently named the Richfield Rediscovered Housing Program. -7- 4-1, 4 3 A survey of purchasers of new homes involved in the original housing program (Cycle I) provided information on the success of the program. The following observations were made with respect to Cycle I of the program and addressed in HRA Letter No. 13: a. The program has met the needs of various buyers which include young families, empty nesters, singles, move- up buyers, and first-time home buyers. b. The permanent bedroom count added to the housing supply in the city is 25. c. Relatively few school-aged children are involved with the newly acquired housing units. Therefore, confidence exists that the increase in dwelling unit size will result in a new increase in school-aged children when all the new units are occupied. d. During the first quarter of 1992, approximately 60 sellers and 15 buyers have indicated interest in participating in a continued program. Sellers, builders, and buyers continue to contact HRA staff to indicate program interest and participation. As with Cycle I of the program and so with Cycle II, a comprehensive, integrated approach for acquisition, site clearance, and new construction was formulated and 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 Currently, there are no development contracts. 3. Other Development Not Under Contract Reasonablv Expected to Occur in the Project. 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; -8- ? /, G ?j 4. New construction; 5. Remedial site environmental activities; and 6. Adjacent public improvements and utilities which service site. For Cycle II of the Housing Program, a total of 32 properties have been identified for program participation and acquisition. Twenty one (21) of the properties are located within Redevelopment Project Area "A" while the remaining eleven (11) are within Redevelopment Project Area "B". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Area A contains one property with a double lot. A property subdivision will be required in order to construct two homes on site. Initial construction for Cycle II is anticipated to begin in the last quarter of 1992. 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 Tax Increment Financing District Property located within TIF District "B-2" is identified in Appendix B. E. Classification of the Tax 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-2" to be established within Project Area "B" 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 detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle II" 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. • -9- ?40 I--' F. Parcels in Acquisition The following property has been identified for acquisition in Cycle II of the Housing Program: ADDRESS 6641-Oliver Ave. 6924 Newton Ave. 6539 Oliver Ave. 7124 Washburn Ave. 6645 Upton Ave. 1908 West 66th St. 2916 West 71 1/2 St. 6300 Aldrich Ave. 6912 Oliver Ave. 7015 Penn Ave. 7021 Penn Ave. PID NUMBER 28-028-24-32-0045 28-028-24-33-0073 28-028-24-23-0092 32-028-24-12-0073 29-028-24-42-0015 28-028-24-23-0125 32-028-24-12-0072 28-028-24-11-0041 28-028-24-33-0053 33-028-24-22-0003 33-028-24-22-0004 For Cycle II Program purposes, the following Cycle I property is removed from the acquisition list. This property is hereby moved to the Cycle II acquisition list. ADDRESS 6300 Aldrich Ave. PID NUMBER 28-028-24-11-0041 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, an additional $500,000 is available under Cycle II to continue the housing program. Repayment of these funds will be through the use of tax increment financing and other sources of revenue, if any, available to the HRA and City. • • • -10- Gj G An estimate of the amount of bonded indebtedness redevelopment is expected to be $0. The term of the years including 0 years of capitalized interest with anticipated taxable interest rate of 0%. The amount capitalized interest is estimated to be $0. for issues is 0 an of A projected cash flow of the overall program reveals that interim program funding could potentially be repaid with interest if sufficient tax increment receipts are available and housing values appreciate. 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 tax increment. In addition to the tax increment revenue, other sources of revenue potentially available to the HRA and City may be utilized. J. Original Tax 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-2" is based on the January 2, 1992 assessed value placed on the property by the county assessor. The OTC for the district is $9,530. (See Appendix B, Property Located in Tax Increment Financing District "B-2".) 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 increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; or 3. Change due to stipulations, adjustments, negotiated or court-ordered abatements. • -11- ???7 K. Estimated Captured Tax Capacity 9 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 the tax increment district is within a range of $79 to $845 per home. The total CTC for 11 new homes within the project area ranges from $869 to $9,295. 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 Tax 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. 0. Limitation on Administrative Expenses 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 -12- authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Tax 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 by the county auditor. 0. Limitation on Qualification of Property in Tax 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 that parcel shall be excluded from 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 on the Use of Tax 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. -13- ?s . 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 which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the City. T. Excess Tax 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 -14- C//, 76) 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 In accordance with Minn. Stat., Sec. 469.1763, the following terms have the meanings given: "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. 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 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), 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-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 -15- 1/ 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 land and completed improvements for the duration of the tax increment district. The assessment agreement shall be presented to the county assessor -16- y, 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 are to be constructed and so long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tax Increment District and Maintenance of the Tax 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 year, the HRA must annually report to the commissioner of revenue the following: 1. Total principal amount of nondefeased tax increment financing bonds that are 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: 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 -17- ? /, 73 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 II" 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 -18- 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 formerly known as the Expanded New Home -Scattered Site 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. • -19- l/ ;7J--- (Intentionally Lett Blank) E • -20- 74 • APPENDICES Richfield Rediscovered Housing Program Redevelopment Project Area "B" and Tax Increment Financing District "B-2" r? • -21- (Intentionally Left Blank) • • • -22- V,-7 f 0 • • APPENDIX A MAP REDEVELOPMENT PROJECT AREA "A" AND "B" AND TAX INCREMENT FINANCING DISTRICTS "A-2" AND "B-2" -23- CV tl k C K ? k G ? M22 0? . ' Mt10MWlt . 2= JL_ JC? _ o r j L if, JCS o L t c K c ?; Y01131OM01 _ _ _ _ _ - \' _ i10'111If W, a 311f Yro70 '3AW MO)9 Nel IL -J viol 411,1 Ll I ?OO ??O?V Q UJ? - ?, rl 41i ? ? "" oo o oononoo I wou»IwODIe o®oo o0o .16S L ?J r's' ©© oo --- Do ? OO rl Y/91 ooC??o 0 Uoo Y991 49 91 lag[ ?000000C? ?0C7[ 4-J 4121 4421 o0 0 o00 ;' 4111 „„ , -t j 4101 I1 -' oLJnU a ?o? i? 4101 ; l 101113 u o©^ 0) N oo1'?? ?'I 101113 Y OOr0Y13 I ? Duo ? ? oL_o i1 r1 r Q "/y j anewnlm II ?0?7 7r' OoO yJj mo? w sM -I ?OO C ??OO?i ? J r Yrw NNW -. a - ? =O CR a o00 e"r,rWO I r iI ? e6 -- ?? i 0».,rro 'a" DMr11NOJ ' ?o? '2M eMr1Law 1 0.6 tie o 1 ' ??? j t-_ M. I OoCI = BO ' 41. ? NOl» 000 00113 ?JD ?1 b ?o 00o .8 ` a O © ?? ?? f 3171E iM7A71s O? I -_ I I ( ul O oU ?L-?_I I? MI .-' BOA '? W ?y T '>Ar 1)11o01w I? ?• lt]oar'w M)1i 001 ANnGS1ld lYnuTIJ I I - - - - --? aNnetl - - 4 0 JL5- 0 q 1 //????? Q y v . ? _ r._. 1Mrfr3 . aerfr7,1 4 DOWNS I i' I o»rYt L JE::30_ R- 131YYr» 1 ^ 1 l>frriN ? ? B? "? w ? ?J 0131JYr0 I1? U ? II Ol)1Jrre II ? gp??? 1® ?F 11 sAr )1rOMA, ?/ • _ 7Ar 21rOMA1 NOIY01r ?? ?,\?? ?J I r1 ?B? NOIYOIr aMWAYO ? i ? 1,1 ? /Y ? 1NWAM XtJ100 I?' + '• ?+ O o I XrJ107 awano n ? lOOrno IF _ o rr^ 0003 0YLu1 M.__ DYWYIO leloewnN L- 1 OMIAYI 1, eNIAYI t7wrf o??Ot,L- 1^-_,JL _ ?L _ I )MVP O:sc; - oooo oooo? l n ?: , ??JCS O 00? 0000 oO MYOYOw ^^rr??1?1 Yr OrOw 0001143" -1 r,?I? J1?? 4Z on LJ ? n ? Ej=E © o 00 /^ryf? Ir?? I J .' _ U 03All0 - r)A110 1 ''77 ? ?--ll _ `Jl JL U _J?l-JD ? JL ' '3AW »M3 1LJLJI 46Y--IJII ('? f ^ h y 1 7AW MM3I N33n0 63)n0 113finY - IL'1I4` o . [a I?..? 1? 111)ifnY »r01N3Mf `'- J\ )L -- ?? --?r r 1' Nr01Y3Mt .? J. frwOMl J Q rF I? erwOMl C U ? YYf" YYI `R \{ j W O '"•- J Rollin __ -??: I ~r' I NO1.0 r? O ( ? 1M33MIA _ .J1,-_J J? ` m 1 nl -.. /r J I J'- ' 1»33MIA \ ` NYMMirN NYMNtr1i O ?~? ` AN i3X11131. !. .._._...... ?.. ..?i: - L. 3Ar L3XY7X 8 P? . ?=J « 1^ K G r >w m a6 « « >n « G G >n !r F F D = t t ? r = ?????? JJJ g m ? 1 J 0 -24- V, ft) APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-2" ADDRESS 6641 Oliver Ave. 6924 Newton Ave. 6539 Oliver Ave. 7124 Washburn Ave. 6645 Upton Ave. 1908 West 66th St. 2916 West 71 1/2 St. 6300 Aldrich Ave. 6912 Oliver Ave. 7015 Penn Ave. 7021 Penn Ave. PID NUMBER 28-028-24-32-0045 28-028-24-33-0073 28-028-24-23-0092 32-028-24-12-0073 29-028-24-42-0015 28-028-24-23-0125 32-028-24-12-0072 28-028-24-11-0041 28-028-24-33-0053 33-028-24-22-0003 33-028-24-22-0004 TOTAL ORIGINAL NET TAX CAPACITY $ 1,254 676 1,092 530 1,462 450 595 546 655 1,135 1,135 $ 9 , 530 -25- ?i APPENDIX C ESTIMATE OF TAX I NCREMENTS FOR TAX INCREMENT FINANCING DISTRICT "B-2" ... .... RANGE ....... A. VALUE OF NEW CONSTRUCTION Per Home Per Home Construction Cost (Land & Bldg) $ 90,000 $130,000 x Sales Ratio 92.50% 92.50% Estimated Market Value -- $ ------- 83,250 --------- $120,250 B. TAX INCREMENT VALUE Estimated Market Value $ 83,250 $120,250 x Tax Capacity Ratio (Class 1A; Prop. Type R-Hmstd) 1.00% $72,000 $ 720 $ 720 2.00% $43,000 225 860 2.50% Balance 0 131 New Tax Capacity $ 945 $ 1,711 - Original Net Tax Capacity (Avg.) (866) (866) Captured Net Tax Capacity -- $ ------- 79 --------- $ 845 x Tax Capacity Rate (1992) 120.944% 120.944% Annual Tax Increment -- $ ------- 96 --------- $ 1,022 x 11 Homes - Total Annual Tax $ 1,051 $ 11,242 Increment C. ESTIMATE OF AD VALOREM PROPERTY TAXES Estimated Market Value $ 83,250 $120,250 x Tax Capacity Ratio (Class 1A; Prop. Type R-Hmstd) 1.00% $72,000 $ 720 $ 720 2.00% $43,000 $ 225 $ 860 2.50% Balance $ 0 $ 131 New Tax Capacity -- $ ------- 945 -- $ ------- 1,711 x Tax Capacity Rate 120.944% 120.944% Annual Ad Valorem Taxes (per home) -- ------- $ 1,143 -- $ ------- 2,069 x 11 Homes - Total Annual Ad $ 12,572 $ 22,763 Valorem Taxes • -26- • APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "B-2" Property Acquisition $ 529,000 Appraisals $ 3,575 Demolition/Site Clearance $ 55,000 Legal Expenses $ 5,000 TOTAL GROSS EXPENDITURE $ 592,575 • • *This budget reflects the purchase by the HRA of all 11 Cycle II properties located within Tax Increment Financing District "B-2". -27- APPENDIX E ESTIMATE OF IMPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "B-2" The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District "B-2". If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred without the assistance of the City, the estimated impact of Tax Increment Financing District "B-2" would be as follows if the "but for" test (see Section Z. Municipal Findings, page 18 of the Plan) was not met: IMPACT ON TAX BASE ENTITY'S TOTAL NET TAX CAPACITY ..............RANGE MINIMUM............... CAPTURED % OF CAPTURED TAX TAX CAPACITY TO CAPACITY ENTITY TOTAL ENTITY City of Richfield Hennepin County School Distr. #280 $ 23,097,324 1,004,056,028 21,745,830 $ 869 0.0038 869 0.0001 869 0.0040 ENTITY ..............RANGE MAXIMUM............... ENTITY'S CAPTURED % OF CAPTURED TOTAL NET TAX TAX CAPACITY TO TAX CAPACITY CAPACITY ENTITY TOTAL City of Richfield $ 23,097,324 $ 9,295 Hennepin County 1,004,056,028 9,295 School Distr. #280 21,745,830 9,295 The estimates listed in the following table tax capacity when all construction is completed. and tax capacities are the payable 1992 figures jurisdictions. Tax Increment Financing District 0.0402 0.0009 0.0427 display captured The tax rates for all "B-2" is • • -28- y ?y anticipated to be certified under rates for payable 1993 or later as the acquisition of property progresses. The tax rate increase column is the estimate of the amount the tax rate of each jurisdiction would theoretically have to increse to raise the taxes listed in the potential taxes column. In addition, the impact on School District No. 280 does not included the effect of state aids for education upon school district funding. IMPACT ON TAX RATES ..............MINIMUM IMPACT.............. CURRENT CAPTURED POTENTIAL TAX RATE TAX RATE TAX CAPACITY TAXES INCREASE ENTITY City of Richfield 0.22953 $ 869 $ 199 0.009 Hennepin County 0.34327 $ 869 $ 298 0.000 School Distr. #280 0.57013 $ 869 $ 495 0.023 Miscellaneous 0.05996 $ 869 $ 52 0.000 ..............MAXIMUM IMPACT.............. CURRENT CAPTURED POTENTIAL TAX RATE TAX RATE TAX CAPACITY TAXES INCREASE ENTITY City of Richfield 0.22953 $ 9,295 $ 2,133 0.092 Hennepin County 0.34327 $ 9,295 $ 3,191 0.003 School Distr. #280 0.57013 $ 9,295 $ 5,299 0.244 Miscellaneous 0.05996 $ 9,295 $ 557 0.001 • -29- 3c CITY OF RICHFIELD, MINNESOTA • Council Letter No. 202 Agenda August 24, 1992 Issue Statement: Consideration of approval of revised Southwest Fire Mutual Aid Association Agreement. Background: The purpose of the Fire Mutual Aid Agreement is to allow participating municipalities to share firefighting equipment and personnel in the case of emergencies. This agreement is meant to replace the current document which is still in effect. The proposed agreement allows for the expansion of resource sharing in non-emergency situations (such as fire investigators, fire inspectors, fire safety educators, training, etc.). The participating government units include: Bloomington, Chanhassen, Eden Prairie, Edina, Golden Valley, Hopkins, MAC, Minnetonka, Plymouth, Richfield, St. Louis Park, V.A./Ft. Snelling, and Wayzata. Recommendation: Staff recommends that the agreement be approved and that the • Mayor and City Manager be authorized to execute the agreement on behalf of the City of Richfield, subject to legal review by the City Attorney. Basis of Recommendation: 1. The current agreement contains some dated language specifying the City's insurance coverage on their employees and other items that are no longer appropriate. 2. The current agreement does not address some of the new directions that the fire service is taking. There is a cost savings to the City by the sharing of non-emergency resources and sharing of extra ordinary services which do not fall into the traditional scope of fire fighting. 3. The proposed new agreement also addresses the issues of fees for service and cost of supplies. It is the intent to allow cities to be reimbursed by a third party for the expenses incurred while giving.extra ordinary service. 4. The City Attorneys of Bloomington and Minnetonka have been active in the creation of this document, and feel it is legally appropriate. Representatives from all 13 jurisdictions that are currently part of the Southwest Mutual Aid Association have also spent considerable time drafting this document. Staff concludes that the proposed agreement contains the tools needed to operate fire departments in today's environment. 3C--/ • Alternative Recommendation: None. Discussion/Decision Mode: Recommendation to approve and sign the Southwest Mutual Aid Agreement presented for Council consideration at this time. Res c fully s mitted, 4n L. c Acting City Manager SLD:ds CJ Y-? -q-2, SOUTHWEST MUTUAL AID ASSOCIATION 30--a JOINT AND COOPERATIVE AGREEMENT FOR USE OF FIRE PERSONNEL AND EQUIPMENT 1. PURPOSE This agreement is made pursuant to Minnesota Statutes Section 471.59, which authorizes the joint and cooperative exercise of powers common to contracting parties, The parties wish to create a regional Mutual Aid Association, hereafter called the Southwest Mutual Aid Association, for the purpose of making equipment, personnel and facilities available to each other upon request. This agreement is intended to give each party the authority to send its equipment and personnel into the other communities and to provide for a Operating Committee to administer this agreement. II. DEFINITION OF TERMS For the purposes of this Agreement, the terms defined in this section shall have the meanings given them below. Subd. 1. "Assistance" includes fire personnel and equipment, fire investigators, fire inspectors, fire educators, fire instructors, training personal and associated equipment and facilities. Subd. 2. "Emergency" means a sudden and unforeseen situation requiring immediate action. ° Subd. 3. "Party" means a governmental unit which is a party to this Agreement. Subd. 4. "Requesting official" means the person who is responsible for requesting assistance from others. Subd. 5. "Requesting party" means a party which requests assistance from other parties. Subd. 6. "Responding official" means the person who is responsible to determine whether and to what extent that party should provide assistance to a requesting party. Subd. 7. "Responding party" means a party which provides assistance to a requesting party Subd. 8. "Specialized Activities" means non-emergency assistance to include but not be limited to: fire investigators, fire inspectors, fire educators, fire instructors, training personal and associated equipment and facilities. Subd. 9. "Extraordinary Services" means emergency assistance that includes activities beyond the normal scope of fire fighting, such as hazardous materials incidents, high level rescue, or dive rescue. 0 3? -3 III. PARTIES The parties to this Agreement are listed on attached Exhibit A and constitute the membership the Southwest Mutual Aid Association. Upon the adoption of a resolution by its Ogoverning body, an executed copy of this Agreement shall be forwarded by the member party to the Secretary of Southwest Mutual Aid Association together with a certified copy of the resolution authorizing the Agreement. Other entities may become a party to this agreement by complying with the conditions provided in the Association rules and by applying to and receiving approval of all member parties. The member party's acceptance of a new member shall be established by the adoption of a resolution approving an amended Exhibit A. Any party may withdraw at any time upon thirty days written notice to the other members. IV. PROCEDURE Subd. 1. Whenever, in the opinion of 2 requesting official, there is a need for assistance from other parties, such requesting official may, in his/her discretion, call upon the responding official of any other party to furnish assistance to and within the boundaries of the requesting party. It is the intention of the parties to this contract to cooperate in the event of an emergency by making the necessary assistance available to a requesting party without undue delay. Subd. 2. Upon the receipt of a request for assistance from a party, the responding official may authorize and direct the Fire Department Rersonnel under his/her control to provide assistance to the requesting party. Whether the responding party provides such assistance to the requesting party and, if so, to what extent such assistance is provided shall be determined solely • by the responding official (subject to such supervision and direction as may be applicable to him/her within the governmental structure of the party by which he/she is employed). Failure to provide assistance will not result in liability to a party. Subd. 3. When a responding party provides assistance under the terms of this Agreement, it may in turn request assistance from other parties as "backup" during the time that it is providing assistance outside its boundaries. Subd. 4. Whenever a responding party has provided assistance to a requesting party, the responding official may at any time recall such assistance or any part thereof to the responding party, if.the responding official in his/her best judgment deems this necessary to provide for the best interests of his/her own community. Such action will not result in liability to any party. Subd. 5. The requesting party shall be in command of the emergency scene. The personnel and equipment shall be under the direction and control of the requesting party until the responding official withdraws assistance. Subd. 6. A responding party shall be responsible for its own personnel, equipment, and for injuries or death to any such personnel or damage to any such equipment, except that unused equipment shall be returned to the responding party by the requesting party when circumstances permit this to be done. Responding personnel shall be deemed to be performing their regular duties for the responding party. Insurance coverage and any financial compensation shall be the responsibility of the responding party. Each party waives the right to sue any other party for any workers compensation benefits paid to it's own employee or volunteer even if the injuries were caused wholly or partially by the negligence of any other party, it's officers, employees, or volunteers. 3e-y Subd. 7. Specialized activities of a non-emergency nature may be requested and/ or provided by the parties to this Agreement. 'Subd. 8. No charge shall be made to a party for assistance rendered under this agreement except that a party providing assistance shall be paid for the cost of supplies. A party providing assistance may charge for time and materials for extraordinary services as provided for in the association rules. V. OPERATING COMMITTEE The association shall have an Operating Committee to administer this agreement. Subd. 1. The Chief of each party's Fire Department, or designee, shall be the party's representative to the Association Operating Committee. Subd. 2. It is the responsibility of the Operating Committee to establish rules, policies, and standards and to take other necessary or prudent action to administer this Agreement. Subd. 3. The Operating Committee shall meet periodically, but not less than quarterly to conduct the business of the Association. . Subd. 4. The Operating Committee shall, in conjunction with the parties, designate for each jurisdiction the responding and requesting officials. Subd. 5. The Association is not a separate legal entity. The Operating Committee shall have no authority to own property, enter into contracts, or to receive and expend funds except for routine administrative expenses. VI. RECIPROCAL DEFENSE AND INDEMNIFICATION The requesting party agrees to indemnify and defend against any claims brought or actions filed against the responding party or any officers, employees, or volunteers of the responding party for injury or death to any third person or persons, or damage to the property of third persons, arising out of the performance and provision of assistance in responding to a request for assistance by the requesting party pursuant to this Agreement. _ The intent of the indemnification requirement of this section is to impose on each requesting party a limited duty to defend and indemnify any responding party for claims arising within the requesting party's jurisdiction subject to the limits of the liability under Chapter 466, Minnesota Statutes: The purpose of creating these reciprocal duties to defend and indemnify is to simplify the defense of liability claims by eliminating conflicts among defendants, and to permit liability claims against multiple defendants from a single occurrence to be defended by a single attorney. Under no circumstances, however, shall a party be required to pay, on behalf of itself and other parties, any amounts in excess of the limits on liability established in Chapter 466, Minnesota Statutes, applicable to only one party. The limits of liability for some or all parties may not be added together to determine the maximum amount of liability for any party. • VII. EFFECTIVE DATE This agreement shall be effective upon execution by all of the parties listed on the attached Exhibit A. • JOINT SERVICES AGREEMENT FIRE EDUCATION DISPLAY 1. Parties. The parties to this agreement are the members of the Southwest Mutual Aid Association (the "Association"), as may be now constituted or hereafter revised. Any party which joins the Association after the execution of this agreement shall automatically be a party to this agreement. 2. Background. The Association has obtained a fire education display in the form of a small house on a movable trailer (the "display"). This agreement is intended to clarify ownership and use of the display and responsibility for scheduling, maintaining, and storing the display. 3. Ownership. The City of Minnetonka shall own the display and be responsible for obtaining property damage insurance covering the value of the display. 4. Use. All members of the Association shall have the opportunity to use the display without charge, in accordance with reasonable scheduling requirements. • 5. Operations. The Operating Committee of the Association shall be responsible for all decisions regarding the use and operation of the display, including its disposition. The Operating Committee shall designate which members have the responsibility for scheduling, maintaining and storing the display. 6. Costs. If a party incurs costs for performing a responsibility under paragraphs 3 or 5 of this agreement which are beyond the costs that the party would otherwise incur, the party may submit an invoice to the Association Secretary for reimbursement of those costs. The costs may be paid out of normal Association dues or the Secretary may separately invoice each member for an equal-share-of those costs. Each Association member shall pay the invoice within 35 days after the invoice date. ?. Disposition. If the Operating Committee decides to dispose of the display, any funds received shall be placed in the Association's general fund or disbursed equally to all Association members, as determined by the Operating Committee. The City of Minnetonka agrees to relinquish ownership of the display if the Operating Committee decides to dispose of the display. • • FIRE DISPLAY AGREEMENT Page 2 8. Indemnification. Each party agrees to defend and indemnify all other parties for any claims resulting from incidents which occurred while the display was in the party's possession, subject to the limits of lability under Minnesota Statutes Chapter 466. Under no circumstances shall a party be required to pay, on behalf of itself and other parties, any amounts in excess of the limits on liability for that party under Chapter 466. The limits of liability for some or all of the parties may not be added together to determine the maximum amount of liability for any party. 9. Waiver of Subrogation. Each party waives the right to sue any other party for any worker's compensation benefits paid to its own employee or volunteer even if the injuries were caused wholly or partially by the negligence of any other party, its officers, employees, or volunteers. 10. Termination. Any party which terminates its membership in the Association shall automatically be terminated as a party to • this agreement effective the same date. In addition, any party may terminate its participation in this agreement by giving 90 days advance written notice to the Association Secretary. 11. Change in Ownership. If the City of Minnetonka or a subsequent owner wishes to divest itself of ownership, it may give 90 days advance written notice to the Association Secretary that its ownership will cease. The Association Operating Committee may seek another member to assume ownership. The City of Minnetonka, or a subsequent owner, may transfer ownership of the display to any other member without approval from the other Association members or an amendment to this Agreement. Any party which assumes ownership shall also assume the rights and :obligations of the -City of Minnetonka pursuant to paragraphs 3, 6, and 7. If no other party wishes to assume ownership, the Operating Committee shall either dispose of the display or make other satisfactory arrangements. 12. Effective Date. This agreement shall be effective upon execution by all of the parties listed on the attached Exhibit A. Each party shall execute a separate signature page and forward that page to the Association Secretary. Upon receipt of all executed signature pages, the Secretary shall send a copy of the fully executed agreement to each member. 0 c--7 SOUTHWEST FIRE LEA EXHIBIT A E City of Bloomington: City of Plymouth: Bloomington Fire Dept. Plymouth Fire Dept. 2215 Old Shakopee Rd. 3400 Plymouth Blvd. Bloomington, MN 55431 Plymouth, MN 55447 Direct: 881-4062 550-5121 881-5811 City of Chanhassen: City of Richfield: Chanhassen Fire Dept. Richfield Dept.of Pub.Safety 7610 Laredo Dr., Box 97 6700 Portland Ave. Chanhassen, MN 55317 Richfield, MN 55423 934-9191 861-9800 City of Eden Prairie: City of St. Louis Park: Eden Prairie Fire Dept. St. Louis Park Fire Dept. 7801 Mitchell Rd. 5005 Minnetonka Blvd: Eden Prairie, MN 55344 St. Louis Park, MN 55416, 937-9881 924-2594 City of Edina: City of Wayzata: Edina Fire Dept. Wayzata Fire Dept. 6250 Tracy Ave. 600 Rice St. Edina, MN 55436 Wayzata, MN 55391 927-8865 473-0234 City of Golden Valley: Golden Valley Fire Dept. Metropolitan Airport Commission: 7800 Golden Valley Rd. M.A.C. Fire Dept. Golden Valley, MN 55427 6307 34th Ave. S. 593-8065 Minneapolis, MN 55440 726-5353 City of Hopkins: Emergency: 726-1177 Hopkins Fire Dept. 1010 1st St. S. V.A. Fort Snelling Hopkins, MN 55343 Fire Dept.1138 Bldg. 70 938-8885 One Veterans Drive Minneapolis, MN 55417 City of Minnetonka: 725-2017 725-2000#4501 Minnetonka Fire Dept. Emergency: 726-1166 14550 Minnetonka Blvd. Minnetonka, MN 55345 939-8598 7-16-92 • • 0 CITY OF RICHFIELD, MINNESOTA Council Letter No. 201 Agenda August 24, 1992 56 Issue Statement: Resolution to request the Commissioner of Transportation for an additional crossing of the Soo Line Railroad at 77th Street. Background: City staff recently requested Soo Line Railroad officials for an additional crossing of the tracks for the new 77th Street. Soo Line officials denied our request. Railroads typically deny these requests on the general principal that more crossings cause more problems for them. The next step is to request the Commissioner of Transportation for permission to cross the tracks. If the City Council approves the attached resolution requesting a public grade crossing, the Commissioner will designate a hearing officer who will schedule a hearing. The railroad and the City will be invited to plead their cases. The railroad will likely be looking to trade the additional crossing for closure of another. It is possible that the 78th Street frontage road crossing would possibly be closed with the 1494 improvements; however, the City can make no guarantees at this time. The rail line is low volume, averaging less than one train a day, and is being considered for abandonment. Recommended Motion: Approve the attached resolution. Basis of Recommendation: 1. The crossing is needed to accomplish the 77th Street plan. 2. The frontage road crossing could be closed in conjunction with the 1494 improvements. 3. This rail line is being considered for abandonment. Alternative Recommendation: None. Discussion/Decision Mode: This item is on the consent calendar of the August 24, 1992 City Council agenda. Action is requested at this time to allow for timely consideration of the railroad crossing request and not delay the design and construction of the 77th Street project. Res rc, tfully submitted, L. Devich /- Acting '4 City Manager SLD:cak Attachment 365- l RESOLUTION NO. RESOLUTION REQUESTING HEARING TO DETERMINE PUBLIC GRADE CROSSING WHERE 77th STREET WOULD INTERSECT THE RIGHT OF WAY AND TRACKS OF THE SOO LINE RAILROAD BE IT RESOLVED that the Richfield City Council hereby makes request for the Commissioner of the Minnesota Department of Transportation to hold a hearing to determine whether or not a public grade crossing should be established where 77th Street would intersect the right-of-way and tracks of the Soo Line Railroad. This request is made in accordance with Minnesota Statute 219.072. Passed by the City Council of the City of Richfield, Minnesota, this 24th day of August, 1992. Martin J. Kirsch Mayor • ATTEST: Thomas P. Ferber City Clerk 3? CITY OF RICHFIELD, MINNESOTA Council Letter No.200 Agenda August 24, 1992 Issue Statement: Request for an amended off-street parking permit at the Church of St. Richard, 7540 Penn Avenue. Background: The Church •of St. Richard effort to identify future effort recognized the los street parking spaces due Intersection Project that has recently conducted a planning property improvements.. This planning of several presently available on- to the Penn Avenue-76th Street will take place next year. In anticipation of the loss of on-street parking, the church is requesting to increase off-street parking. The proposal includes adding one large parking lot on the west side of the church property and two smaller parking areas adjacent to the existing parking lot. The proposal would add 123 new parking spaces, giving the site a total of 432 parking spaces. The proposal includes installation of curb and gutter, dividing islands, storm sewer catch basins and lighting. In addition, the entrance along 76th Street would be widened and the bus driveway along Penn Avenue would be removed. The church would also install landscaping and berming to screen the new parking area. However, because the right-of-way acquisition line has not yet been determined, it was impractical to require a landscape plan at this time. With the exception of new lighting, the existing north parking lot will not be altered. Recommended Motion: Approve the amended off-street parking permit and site plan for the Church of St. Richard with the following stipulations: 1. That landscape screening be provided along 76th Street within one year of completion of the Penn Avenue-76th Street Intersection Project, and that the plan be approved by the City Planner to ensure compliance with City landscape guidelines. 2. That the City utility department reserves the right to require a further reduction in size of the restricter in the on-site storm water system if there is a significant increase in flooding on 76th Street as a result of this project. • Basis of Recommendation: 1. The proposal would bring the Church into conformity with parking standards. 519-1 • 2. The proposal would improve traffic circulation and pedestrian safety in the area. 3. The proposed drainage and lighting plans have been reviewed and approved by City staff. 4. Handicapped parking availability exceeds the Federal requirements. 5. The church has agreed to provide the required landscaping after the roadway improvements have been completed. 6. The fire lane plan has been approved by the Fire Marshal. • Alternative Recommendation: The City Council may deny the amended off-street parking permit with a finding that the proposal would have an adverse impact on adjacent properties. Discussion/Decision Mode: Consideration of this item is scheduled on the consent calendar of the August 24, 1992 City Council meeting. Respe tfu ly subm'tted, Devich Acting City Manager SLD:cak U ;?A-,9- V r? Z x ? ???.! W ? f as' 9 a ? "' y O f y oil ?Q S ? 3 ? I F? . r __ f a a dY? ^ty? I . t } 3 ? ? tD I - W ig 3 ; _ ?,- ?. a -- ---_• '.' f -',„-_ . l L 1 lad ` :: s wT#w. PI 4 A ; }111 ` '' ? •.'? .? • Y t :;};:? ? ' Y C) z (Li W QQ N 20 z 9 n J Z p ZV1? Z- p 42 ;' 31r '?\\S ?fl ???i I' o 'Y i i { ?•s;? ? a?n O • ? + ? ? y , i $$ ?Y •?f ?S'.7 $3q S? I I 1 r ? ;8 ?i1 i'? 1 `6C 7, 1, K ••a•ve' 9${ dI7 $? i s s?fs $ Sill +??.kal! ?I! •• •la?? 9. ? i 7 ? ? ? tit«• ix --+.r--?Z -+i c ! eee ? •? ?I I I: N •? v ' ? ?' ? jr ? a? ? ? I 4 1 7 r?j • iv 1 • s $ I 3' tia 5 I ' c.y o ,p,F ? ? :? 9 = L I I •? ? m _ • l • E?t I 1!;? I .. a i Y o _ t ? aft a, '? ? _ . , ? I - •_ _ •• •-. y ? Tn . i ? 10 22 at y 4 ? ?i t"si ... :7 ? ? ? •? I ;1 4 1 ? b •