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04-19-93 agendaCITY OF RICHFIELD MONDAY, APRIL 19, 1993 ' SPECIAL CITY COUNCIL MEETING HELD CONCURRENTLY WITH RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY - 7:00 P.M. - COUNCIL CHAMBERS AGENDA CALL TO ORDER 1. CONSIDERATION OF USE OF SOUTHERLY FIVE ACRES OF CLOVERLEAF SITE FOR PORTABLE CONCRETE BATCH MIXING PLANT FOR 77TH STREET PROJECT COUNCIL LETTER N0. 123 ~ - HRA LETTER N0. 12 2. CONSIDERATION OF AUTHORIZATION TO LEASE 6318 NICOLLET AVENUE TO 77TH STREET RELOCATES FOR ONE YEAR COUNCIL LETTER N0. 124 ' HRA LETTER N0. 13 3. RECEIPT OF DISCLOSURE STATEMENT AND DISCUSSION OF EMPLOYEE PARTICIPATION IN LOCAL BUSINESS COUNCIL LETTER N0. 125 HRA LETTER N0. 14 ADJOURNMENT REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING TO BEGIN IMMEDIATELY FOLLOWING COMPLETION OF CONCURRENT MEETING WITH CITY COUNCIL COUNCIL CHAMBERS AGENDA CALL TO ORDER APPROVAL OF MINUTES OF MARCH 15; 1993 HRA MEETING - 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF INITIATING A HOUSING PROGRAM WITH TWIN CITIES HABITAT FOR HUMANITY AND RESOLUTION AUTHORIZING ACQUISITION. OF 6225 14TH AVENUE AND 6310 15TH AVENUE HRA LETTER N0. 15 - 3. CONSIDERATION OF RESOLUTIONS: A) ESTABLISHING DEVELOPMENT ACCOUNT; AND B) REQUESTING CITY COUNCIL TO SCHEDULE PUBLIC HEARING ON ESTABLISHMENT OF RICHFIELD REDEVELOPMENT PROJECT AREA, MODIFICATIONS FOR CERTAIN REDEVELOPMENT PROJECT-AREAS AND .FOR CERTAIN TAX INCREMENT FINANCING DISTRICTS HRA LETTER. NO. 16 4. EXECUTIVE DIRECTOR REPORT 5. CLAIMS AND PAYROLL ADJOURNMENT {~ AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES AR$ AVAILABLE F-UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE. TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702.' • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 16 ,Agenda April 19, 1993 Issue Statement: Establishment of a development account and the Richfield Redevelopment Project Area. Background At the March meeting, the HRA was presented with the concept of a development account and pooling of tax increment projects. Publicorp representatives Sid Inman and Mark Ruff reviewed the.. financial feasibility and desirability of establishing an account and pooling. Staff presented a list of potential projects which, over a period of .years, could be initiated with the development .account. The HRA directed staff to proceed with the implementation of these concepts. The first attachment to this letter is a resolution which, if adopted by the HRA, would establish the development account. The resolution would establish the account with a deposit of 5600,000 (Section 1.05). In succeeding years, annual deposits and resulting program activities would be funded through the annual budget process. _ At the May meeting, staff .would present to the HRA projects from the list presented in March with a priority ranking appropriate for 1993. Additional input from the HRA at the April meeting would be helpful. A second concept presented at the March meeting was that of pooling the existing tax increment districts. The advantages of pooling include the following: 1) Projects with strong cash flows can support, if necessary, projects with a weaker cash flow. 2) Result in reduced expenses by lessening the need for bond sales and possibly the need for additional tax increment districts. 3) Provide credit enhancements for bonds if and when sold. The above advantages can be realized without lengthening the existing bond debt amortization schedules. Because of these advantages, most cities utilizing tax increment financing incorporate this pooling concept. The attached document includes the Redevelopment Plan For Richfield Redevelopment Project Area and modifications to all existing projects. Pooling would be established by placing all the existing redevelopment and tax increment districts in one redevelopment district, the proposed name of which is the Richfield Redevelopment Project Area. The boundary conforms to the existing redevelopment project boundary for Richfield Rediscovered and also includes existing projects and the southeast quadrant of Richfield. No existing project boundaries are being changed. The inclusion of this southeast area would be prudent for long range planning purposes. Note the maps in the redevelopment project area plan, pages A-2 and B-1. The Richfield Redevelopment Plan is. basically a compilation of previously .approved redevelopment glans (ILN, LHN, PASSS, CABA and RR A and B). Note the Table of Contents. • Page 3 is a Statement of Public Purpose and explains the basis for creating the Richfield Redevelopment Project Area. • Goals and Objectives are listed on pages 4-6. • Page 6 also lists anticipated public activities, and page 8 lists anticipated private development activities. • Pages 10-22 are the amendments to the existing redevelopment and tax increment areas which would effectuate pooling. • On page 12 is a proposed modification to the ILN Tax Increment _ District. The modification would delete from the tax increment district the Corporate Travel property on 76th Street and Girard Avenue. The Market Value has dropped from $3.6 million in 1985 to $1.6 million in 1993. (The plan identifies the value drop by use of tax capacity). It is unlikely that this property will return to its previous valuation. The project cash flow would benefit from this deletion. Amendments to each of the redevelopment plans and tax increment plans must be approved concurrently with the Richfield Redevelopment Project Area Plan to establish the Richfield Redevelopment Project to implement the pooling.' The resolution which follows, when adopted by the HRA, would request the City Council to hold a public hearing on the proposed plan amendments and the establishment of the Richfield Redevelopment Project Area. The proposed schedule for implementing the pooling concept is as follows: 4/19/93 HRA considers adoption of resolution requesting the City Council to schedule a hearing on June 14, 1993 for purposes of establishing the Richfield Redevelopment Project Area and amending the existing plans. 5/3/93 Council Study Session at which the Richfield Redevelopment Project Area is discussed. 5/10/93 Council meeting at which request of HRA for a public hearing on June 14 is presented for action. 5/17/93 HRA requested to .approve project plan modifications and Richfield Redevelopment Project Area Plan. 5/25/93 Planning Commission requested to make a finding with regards. to plan modifications and Richfield Redevelopment Project Area Plan and their compliance with the Comprehensive Plana 6/14/93 Council public hearing on plan amendments and Richfield Redevelopment Project Area Plan. Recommended Motion: Adopt a motion which approves: 1. the resolution establishing the development account; and 2. the resolution requesting the City Council to schedule a public hearing on the establishment of the Richfield Redevelopment Project Area and amending existing plans. Basis of Recommendation: 1. The development account would: a. provide a much needed revenue source to maintain and initiate needed programs. b. not impact the existing tax increment debt service schedules. c. .provide for initiation of programs during 1993 with a maximum funding level of $600,000 based on a priority ranking submitted to the HRA in May. d. offers an efficient administrative process when combined -with the annual budget process for funding programs. 2. Pooling of tax increment projects would: a. strengthen the cash flows of all existing tax increment projects with debt service. b. increase the possibility of credit enhancements for future projects which may require them. c. reduce operating expenses related to tax increment projects. 3. Neither of the proposals is in conflict with the five point policy adopted by the HRA several years ago (attached). Alternative Recommendation: 1. Modify the recommendations. 2. ..Delay proposed action. Discussion/Decision Mode: These proposals are presented for consideration in response to direction provided by the HRA to staff in March. Respect submitted, r James. rosser Execut' Director JDP:cak COUNCIL POLICIrS P7HEPd ISSUING TAX INCRT'I~9ENT BONDS 1. The multi-family project, home improvement center, Richfield Bank ,and Trust project and promotional department store .project be completed by separate developers. 2. The bond issue should be divided into stages. 3. Surety bonds for project completion must be retained from each developer. 4. Bonds rnust not be sold or land assembled until a definite fi:~ancial ccmmitment is obtained from the developer. 5. Speedy site assembly (property purchase relocation and demolition) must be completed . " ~ by the T3RA once a developer. is committed .to the project. HRA RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION APPROVING THE ESTABLISHMENT OF A DEVELOPMENT ACCOUNT AND SETTING FORTH THE PROCESS FOR FUNDING A DEVELOPMENT ACCOUNT BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: Section 1. Recitals. 1.01 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") has identified that there is an ongoing need within the City for redevelopment of property both within and outside of the boundaries of existing tax increment districts. 1.02 The HRA has determined that duration limits on its existing tax increment financing districts and the impediments to establishing new tax increment financing districts have encouraged the HRA to seek new financial tools to achieve its redevelopment objectives. 1.03 The HRA has conducted a study and determined that the establishment of a Development Account (the "Account") will offer an additional redevelopment mechanism to achieve its goals and objectives. 1.04 The HRA maintains a concern for other taxing jurisdictions' ability to maximize the existing and future property tax base. The HRA has determined that the use of the Account will provide an alternative method of redevelopment funding without the necessity to establish new tax increment financing districts while catalyzing increases in the property tax base within the City. 1.05 The HRA has completed a study and has identified $600,000 in interest income and land proceeds in its tax increment accounts that are not currently budgeted and are available for use in the Account for the fiscal year 1993. Section 2. HRA Approval. 2.01 The HRA finds that the objective of encouraging redevelopment within the existing redevelopment project areas will be advanced by establishment of the Account. 2.02 Staff is directed to formulate budget procedures for annual deposits to the Account. -, 2.03 The HRA approves the transfer of 5600,000 to the Account for fiscal year 1993. 2.04 Staff is directed to submit a list of potential projects for use of the initial 5600,000 of Account funds in fiscal year 1993. 2.05 Staff is directed as part of the annual budget process to identify the amount of interest and other funds that can be transferred to the Account. The annual recommendation will include an analysis to determine the sufficiency of tax increment account balances to meet current and future HRA obligations. Thomas E. Harms, Chairperson Larry Wozniczka, Secretary REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA and MODIFICATIONS TO THE LHN COMMERCIAL IMPROVEMENT PROGRAM for LHN REDEVELOPMENT PROJECT AREA ILN REDEVELOPMENT PLAN for ILN REDEVELOPMENT PROJECT AREA including the TAX INCREMENT FINANCING PLAN for ILN TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT PLAN for CABA REDEVELOPMENT PROJECT AREA including the TAX INCREMENT FINANCING PLAN for CABA TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT PLAN for PASSS REDEVELOPMENT PROJECT AREA including the TAX INCREMENT FINANCING PLAN for PASSS TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT PLAN for REDEVELOPMENT PROJECT AREA A including the TAX. INCREMENT FINANCING PLAN for A-1 TAX INCREMENT FINANCING DISTRICT and TAX INCREMENT FINANCING PLAN for A-2 TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT PLAN for REDEVELOPMENT PROJECT AREA B including the TAX INCREMENT FINANCING PLAN for B-1 TAX INCREMENT FINANCING DISTRICT and TAX INCREMENT FINANCING PLAN for B-2 TAX INCREMENT FINANCING DISTRICT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY in and for the CITY OF RICHFIELD, MINNESOTA HRA Adoption: May 17, 1993 City Council Adoption: June 14, 1993 MAYOR Martin Kirsch CITY COUNCIL Michael Sandahl Susan Rosenberg Russ Susag Donald Priebe HOUSING AND REDEVELOPMENT AUTHORITY Thomas Harms Russ Susag Joan Helmberger Vern Luettinger Larry Wozniczka PLANNING COMMISSION Robert Elliott Timothy Erlander Michael Gallagher Daniel Linnihan Morris Nilsen, II Thomas Scaglia William Snyder Kristal Stokes Paul Wasko CITY MANAGER/HRA EXECUTIVE DIRECTOR James Prosser COMMUNITY DEVELOPMENT DEPARTMENT Byron Wallace, Director Bruce Palmborg, Housing and Redevelopment Coordinator Kathy Jablonsky, Redevelopment Specialist HRA ATTORNEYS John Dean, Holmes & Graven Steven Bubul, Holmes & Graven HRA FINANCIAL CONSULTANTS Sidney Inman, Publicorp, Inc. Mark Ruff, Publicorp, Inc. TABLE OF CONTENTS Municipal Action Taken ............................................................................................ i Definitions .............................................................................................................. 1 Statement of Public Purpose ..................................................................................... 3 Statutory Authority .................................................................................................. 4 Statement of Goals and Objectives ............................................................................ 4 Estimated Public Costs ............................................................................................. 6 Boundary of Richfield Project Area ............................................................................. 7 Parcels in Acquisition and Relocation ......................................................................... 7 Environmental Considerations ................................................................................... 7 Proposed Land Use .................................................................................................. 7 Development Activity in Richfield Project Area ............................................................ 8 Administration and Maintenance of Richfield Project Area ............................................. 8 Richfield Project Area Modifications ........................................................................... 9 Modification to LHN Redevelopment Project Area ...................................................... 1 1 Modification to ILN Redevelopment Project Area and Tax Increment Financing Plan........ 12 Modification to CABA Redevelopment Project Area and Tax Increment Financing Plan.....14 Modification to PASSS Redevelopment Project Area and Tax Increment Financing Plan...16 Modification to Redevelopment Project Area A and Tax Increment Financing Plans......... 18 Modification to Redevelopment Project Area B and Tax Increment Financing Plans......... 20 Appendix A: Richfield Project Area Map and Description ...............................................A Appendix B: Tax Increment Districts and Project Areas Map ......................................... B MUNICIPAL ACTION TAKEN Richfield Redevelopment Project Area Based upon the statutory authority described in the Redevelopment Plan for Richfield Project Area attached hereto, the public purpose findings by the City Council of the City of Richfield and the Housing and Redevelopment Authority of the City of Richfield and for the purpose of fulfilling the City's redevelopment goals and objectives the City Council established Richfield Project Area pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.001 to 469.047, inclusive, as amended. The following municipal action was taken in connection therewith: June 14, 1993: The Redevelopment Plan for Richfield Redevelopment Project Area was adopted by the City Council MUNICIPAL ACTION TAKEN Lyndale-Hub-Nicollet (LHN) Redevelopment Project Area October 15, 1975: The Commercial Improvement Program for the LHN Redevelopment Project Area was adopted by the City Council. November 24, 1975: The Commercial Improvement Program for the LHN Redevelopment Project Area was modified by the City Council. March 26, 1979: The Commercial Improvement Program for the LHN Redevelopment Project Area was modified by the City Council. December 17, 1990: The Commercial Improvement Program for the LHN Redevelopment Project Area was modified by the City Council. June 14, 1993: The Commercial Improvement Program for the LHN Redevelopment Project Area was modified by the City Council. MUNICIPAL ACTION TAKEN Interstate-Lyndale-Nicollet (ILN) Redevelopment Project Area October 21, 1985: The Redevelopment Plan for the ILN Redevelopment Project Area and the Tax Increment Financing Plan for the ILN Tax Increment Financing District were adopted by the City Council September 18, 1989: The Redevelopment Plan for the ILN Redevelopment Project Area and the Tax Increment Financing Plan for the ILN Tax Increment Financing District were modified by the City Council. June 14, 1993: The Redevelopment Plan for the ILN Redevelopment Project Area and the Tax Increment Financing Plan for the ILN Tax Increment Financing District were modified by the City Council. MUNICIPAL ACTION TAKEN Cedar Avenue Business Areas (CABA) Redevelopment Project Area October 21, 1985: The Redevelopment Plan for the CABA Redevelopment Project Area and the Tax Increment Financing Plan for the CABA Tax Increment Financing District were adopted by the City Council. June 14, 1993: The Redevelopment Plan for the CABA Redevelopment Project Area and the Tax Increment Financing Plan for the CABA Tax Increment Financing District were modified by the City Council. MUNICIPAL ACTION TAKEN Penn Avenue and Sixty Sixth Street (PASSS) Redevelopment Project Area December 18, 1989: The Redevelopment Plan for the PASSS Redevelopment Project Area and the Tax Increment Financing Plan for the PASSS Tax Increment Financing District were adopted by the City Council. June 14, 1993: The Redevelopment Plan for the PASSS Redevelopment Project Area and the Tax Increment Financing Plan for the PASSS Tax Increment Financing District were modified by the City Council. MUNICIPAL ACTION TAKEN Redevelopment Project Area A July 23, 1990: The Redevelopment Plan for the Redevelopment Project Area A and the Tax Increment Financing Plan for the Tax Increment Financing District A-1 were adopted by the City Council. August 24, 1992: The Redevelopment Plan for the Redevelopment Project Area A and the Tax Increment Financing Plan for the Tax Increment Financing District A-1 were modified by the City Council and the Tax Increment Financing Plan for Tax Increment Financing District A-2 was adopted by the City Council. June 14, 1993: The Redevelopment Plan for the Redevelopment Project Area A and the Tax Increment Financing Plans for the Tax Increment Financing District A-1 and Tax Increment Financing District A-2 were modified by the City Council. MUNICIPAL ACTION TAKEN Redevelopment Project Area B July 23, 1990: The Redevelopment Plan for the Redevelopment Project Area B and the Tax Increment Financing Plan for the Tax Increment Financing District B-1 were adopted by the City Council. August 24, 1992: The Redevelopment Plan for the Redevelopment Project Area B and the Tax Increment Financing Plan for the Tax Increment Financing District B-1 were modified by the City Council and the Tax Increment Financing Plan for Tax Increment Financing District B-2 was adopted by the City Council. June 14, 1993: The Redevelopment Plan for the Redevelopment Project Area B and the Tax Increment Financing Plans for the Tax Increment Financing District B-1 and Tax Increment Financing District B-2 were modified by the City Council. A. Definitions. The terms defined below shall, for purposes of this Development Program, have the meanings herein specified, unless the context otherwise specifically requires: "CABA Redevelopment Project Area" means the Cedar Avenue Business Area Redevelopment Project Area as modified. "City" means the City of Richfield, a municipal corporation and political subdivision of the State of Minnesota designated as a home rule-charter city. "Comprehensive Plan" means the documents which contain the objectives, policies, standards and programs to guide public and private land use, development, development and preservation for all lands and water within the City. "Council" means the City Council of the City, also referred to as the governing body. (See "Governing Body" below). "County" means the County of Hennepin, Minnesota. "Governing Body" means the duly elected City Council. "HRA" means the Housing and Redevelopment Authority in and for the City of Richfield. '`HRA Act" means Minnesota Statutes, Section 469.001 to 469.047, as amended. "ILN Redevelopment Project Area" means the Interstate-Lyndale-Nicollet Redevelopment Project Area as modified. "LHN Redevelopment Project Area" means the Lyndale-Hub-Nicollet Redevelopment Project Area established by the Council as modified. "Municipality" means any city, however organized as defined in Minnesota Statutes Section 469.125, Subdivision 2. "PASSS Redevelopment Project Area" means the Penn Avenue and Sixty Sixth Street Redevelopment Project Area as modified. "Richfield Project Area" means the Richfield Redevelopment Project established by the Council on June 14, 1993. "Redevelopment Plans" means the Commercial Improvement Program for the LHN Redevelopment Project Area and the Redevelopment Plans for the ILN Redevelopment Project Area, the CABA Redevelopment Project Area, the PASSS Redevelopment Project Area, Redevelopment Project Area A and Redevelopment Project Area B. 1 "Redevelopment Project Areas" means the LHN Redevelopment Project Area, the ILN Redevelopment Project Area, the CABA Redevelopment Project Area, the PASSS Redevelopment Project Area, Redevelopment Project Area A and Redevelopment Project Area B. "Richfield Redevelopment Plan" means the Richfield Plan adopted by the City on June 14, 1993. "School District" means Independent School District No. 280. "State" means the State of Minnesota. "Tax Increment Financing Districts" means the LHN Redevelopment Project Area, the ILN Redevelopment Project Area, the CABA Tax Increment Financing District, the PASSS Tax Increment Financing District, Tax Increment Financing District A-1, Tax Increment Financing District A-2, Tax Increment Financing District B-1, and Tax Increment Financing District B-2. "Tax Increment Financing Plans" means the Commercial Improvement Plan for the LHN Redevelopment Project Area, the Tax Increment Financing Plan for the ILN Tax Increment Financing District, the Tax Increment Financing Plans for the CABA Tax Increment Financing District, the Tax Increment Financing Plan for the PASSS Tax Increment Financing District, the Tax Increment Financing Plan for Tax Increment Financing District A-1, the Tax Increment Financing Plan for Tax Increment Financing District A-2, Tax Increment Financing Plan for Tax Increment Financing District B-1, and the Tax Increment Financing Plan for Tax Increment Financing District B-2. "Tax Increment Financing Act" means the statutory provisions of Minnesota Statutes, Sections 469.174 - 469.179, inclusive, as amended. 2 B. Statement of Public Purpose. The HRA has found that public interest requires the replanning and rehabilitation of residential and commercial neighborhoods across the City to remedy conditions of underutilized land, to correct numerous traffic and pedestrian hazards, to improve substandard and unsafe housing units, to increase the property tax base, to increase employment, and to encourage the expansion of private enterprise. To these ends, the HRA and the Council from 1975 to 1990 established and modified from time to time six individual Redevelopment Project Areas to enhance the public interest and accomplish goals and objectives set forth in the Redevelopment Plans. Given the geographical separation of the Redevelopment Project Areas, the HRA finds cause to explore opportunities to more effectively address the public interest. These opportunities include developing a more efficient method of financing public costs and assisting in the development and redevelopment by private enterprise unimpeded by individual Redevelopment Project Areas' boundaries. The HRA finds that it is necessary to facilitate the flow of funds into areas of the City which are in need of public intervention but previously had little or no resources available. The HRA has also determined that there exists areas of the City not included in one of the Redevelopment Project Areas in which needs are not being served and for which funds are not currently available. These areas include buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use, or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals or welfare of the City. The HRA has further determined that the welfare of the City requires active promotion, attraction, encouragement and development of economically sound industry and commerce through government action for the purpose of preventing the emergence of blight and the occurrence of conditions requiring redevelopment. Therefore, the HRA has determined that the it is necessary to establish the Richfield Project Area which would encompass existing Redevelopment Project Areas as well as include portions of the City previously not included. Funds for redevelopment and development could therefore be targeted to specific needs without geographical barriers. Potential funding sources include, but are not limited to, tax increments, federal grants and loans, state grants and loans, interest earnings, land sale proceeds, development accounts, and other local resources. The establishment of the Richfield Project Area does not replace the existing Redevelopment Areas, does not include. the establishment of a new tax increment financing district, nor does it extend the duration of existing Tax Increment Financing Districts. Instead, the establishment of the Richfield Project Area will serve as an umbrella entity. Therefore, costs of financing redevelopment activities will be reduced and areas of the City previously outside the HRA's area of operation will be included. 3 C. Statutorv Authorit The statutory authority for the undertaking of a redevelopment project and the activities proposed in the redevelopment plan relating thereto is conferred upon the HRA pursuant to and in accordance with the HRA Act. Specifically, Minnesota Statutes, Section 469.027 establishes the requirements for the redevelopment plan preparation by an HRA prior to the undertaking of property acquisition, redevelopment, development and other related improvements. D. Statement of Goals and_ Obiectives. The HRA determines that the establishment of the Richfield Project Area and the modification of Redevelopment Project Areas and Tax Increment Financing Districts will provide the HRA with the ability to achieve certain public purpose objectives not otherwise obtainable in the foreseeable future without HRA intervention in the normal development process. The HRA and Council seek to achieve the following goals and objectives: Goals: 1. To provide a revenue base to meet the needs of Richfield. 2. To develop job opportunities for area residents. 3. To develop strategies to encourage revitalization. 4. To maintain a positive business environment. 5. To enrich the quality of life for residents through planning of the interrelationship of land use. 6. To recognize the needs of all segments of the populace through diversity in housing stock which is a major determinant of the living environment. Objectives: 1. To achieve a high level of design quality through use of design features such as landscaping to enhance the physical environment. 2. To better utilize vacant or underdeveloped land. 3. ~To improve vehicular circulation by providing a comprehensive system which provides good direct access to and from the commercial areas. To the extent practical, eliminate commercial traffic from residential streets and minimize vehicular circulation conflicts or congestion. 4. To achieve a balanced variety of commercial businesses. and services appropriate to the market area. 5. To provide increased employment opportunities. 4 6. To diversify the tax base of the community. 7. To eliminate or reduce the conflicts which result from incompatible land use relationships, especially between residential and non-residential. 8. To protect the single-family residences from the adverse effects of nearby commercial development, roadways and offstreet parking. 9. To utilize landscaping and/or screening between all single-family residential and commercial/office uses. Landscaping and/or screening should also be provided along major thoroughfares which border residential areas. 10. To eliminate unsightly and blighting elements such as exposed trash storage areas, overhead utility lines, poorly maintained and excessively large billboards or signs, and deteriorated structures. 11. To provide for the elimination of blight which is evidenced by irregular sized lots, inadequate streets, incompatible land uses, physical and functional obsolescence, and inadequate parking. 12. To encourage the sharing of parking facilities and to generally improve the parking and circulation in the area. 13. To provide public utilities and other public facilities of sufficient quality and size to support the future development in the area. 14. To provide for an expanded range of housing opportunities in the community, as appropriate. 15. To encourage open lines of communication between all the residents, businesses and city staff. 16. To provide maximum opportunity, consistent with the needs of the city for development by private enterprise. 17. To coordinate elements of the City's Comprehensive Plan with these project objectives. 18. Provide jobs within close proximity of the residential population and concurrently saving energy by reducing trip time to jobs. 19. Provide a retail service level required by the residents of the community. 20. Secure the increase of housing, commercial, and industrial property subject to taxation by the City, Independent School District No. 280, Intermediate School District No. 287, Hennepin County, City, and other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs required to be provided by them. 5 21. Encourage local business expansion, improvements, rehabilitation, and development, whenever possible and provide financial incentives for same. 22. Combine the elements of other City Plans with these project objectives. E. Estimated Public Costs. The anticipated public development activities in the Richfield Project Area to be undertaken by the HRA and City in order to support the private development activities include: 1. Property acquisition; 2. Site clearance; 3. Site improvements; 4. Activities in support of streetscape improvements; 5. Rehabilitation and renovation; 6. Public infrastructure improvements; 7. Parking facilities; B. Right-of-way improvements; 9. Vacation of right-of-ways; and 10. Dedication of new right-of ways. The establishment of Richfield Project Area does not concurrently include the establishment of a new tax increment financing district. Budgets for tax increments contained within the Tax Increment Financing Plans will be utilized for any current expenditures. The establishment of Richfield Project Area is intended to authorize the HRA to expend tax increments derived from the Tax Increment Financing Districts on any property within the Richfield Project Area. Revenue other than tax increments to be expended in the Richfield Project Area will be designated in the annual HRA appropriation and budget process. Because the establishment of the Richfield Project Area is not expected to increase the captured tax capacity of the Tax Increment Financing Districts beyond the scope of the Tax Increment Financing Districts, as modified, the impact on other taxing jurisdictions is SO at this time. The HRA is not requesting new authority to issue bonds at this time. If bonds are issued according to the Tax Increment Financing Plans, tax increments from each of the Tax Increment Financing Districts may be used for credit enhancement or for payment of debt service on the bonds. Administrative costs will be funded as revenue sources become available and out of existing balances. 6 F. Boundary of the Richfield Project Area. The map and description for the boundary for the Richfield Project Area is found in Appendix A. A map outlining the boundary of the Project Area, the Redevelopment Project Areas, and the Tax Increment Financing Districts is found in Appendix B. The HRA is intending to expend tax increment in any parcel or right-of-way located within or is a portion of the Richfield Project Area boundary. G. Parcels in Acauisition and Relocation. The HRA may acquire and reconvey the parcels identified in Redevelopment Plans and Tax Increment Financing Plans. The HRA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives. No additional parcels have been added to the list of properties to be acquired. The HRA accepts as binding its obligations under federal and state law for relocation and will administer relocation services for families, individuals and businesses to be displaced by public action if such services are requested or necessary. Prior to approval by the HRA of any development or development plan, it shall be satisfied that there is a feasible method for the temporary relocation of families and businesses to be displaced and that there are available or will be provided, in the project area or in other areas not less desirable in regard to public utilities and public commercial facilities and at rents or prices within the financial means of the families and businesses displaced from the project area, decent, safe and sanitary residences and buildings equal in number of such displaced families and businesses. H. Environmental Considerations. Prior to development and substantial financing of the public costs associated with the project, the HRA will have secured the necessary review of the Project by the Minnesota Pollution Control Agency, the Minnesota Environmental Quality Council, the Minnesota Department of Natural Resources and any other state, federal or local agencies and received the necessary permits or approvals from the affected agencies at the federal, state, and local levels of government, if such review and approval are identified as necessary by the HRA. t. Proposed Land Use. Property reused in the Richfield Project Area that is in a Tax Increment Financing District will continue to be governed by the Tax Increment Financing Plan as well as by the Comprehensive Plan. Land reuse outside a Tax Increment Financing District but within Richfield Project Area will be governed by the Comprehensive Plan, including any changes that are made thereto. The public improvements needed to bring about the new development or redevelopment any activities listed in Section E, "Estimated Public Costs", of this document. 7 J. Development Activity in Richfield Project Area. Any and all proposals by developers 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 upon disposition to the developer. The general requirements to be imposed upon the developer 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, sexual preference, creed, or national origin on the sale, lease, transfer, or occupancy of the property purchased from the HRA. Description of Private Development Activities The private development activities within the Richfield Project Area which are anticipated to occur include: 1. Property acquisition; 2. Site clearance; 3. Site improvements; 4. Activities in support of streetscape improvements; 5. Rehabilitation and renovation; 6. New construction; 7. Public infrastructure improvements; 8. Parking facilities; 9. Right-of-way improvements; 10. Vacation of right-of-ways; and 11. Dedication of new right-of-ways. 8 K. Administration and Maintenance of Richfield Project Area. Maintenance and operation of the public improvements will be the responsibility of the Executive Director of the HRA. Each year the Administrator will submit to the HRA the maintenance and operation budget for the following year and will submit the necessary documents to the appropriate state agencies. No action taken by the Administrator pursuant to the above mentioned powers shall be effective without authorization by the HRA. L. Modification to the Richfield Project Area. All redevelopment plan modifications will be processed in accordance with Minnesota Statutes, Section 469.029, Subdivision 6. 9 Modification #7 to LHN Commercial Improvement Program for the LHN Redevelopment Project Area June 14, 1993 Introduction The following text represents a modification to the LHN Commercial Improvement Program for the LHN Redevelopment Project Area to include references to the Redevelopment Plan for Richfield Redevelopment Project Area. The modified Commercial Improvement Program represents a continuation of the goals and objectives set forth in the original Program. Generally, the substantive changes include the authority to spend tax increments generated from any of the HRA's eight tax increment financing districts in the Richfield Redevelopment Project Area. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 and the Commercial Improvement Program for the LHN Redevelopment Project Area originally dated October 15, 1975 and last modified on December 17, 1990 is recommended. Statutory Authority Statement See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Map of Project Area List of Parcels, and Legal Description The boundary for LHN Redevelopment Project Area is not being modified. References to the area in which tax increments may be expended can be found Appendix A and Appendix B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Public Purpose Statement See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Public Costs and Financing This modification authorizes the HRA to expend tax increment from the LHN Redevelopment Project Area for qualified activities identified in the budget of any of the Tax Increment Financing Districts. 10 Modification #3 to Redevelopment Plan for ILN Redevelopment Project Area and Modification #3 to Tax Increment Financing Plan for ILN Tax Increment Financing District June 14, 1993 Introduction The following text represents a modification to the Redevelopment Plan for the ILN Redevelopment Project Area and the Tax Increment Financing Plan for the ILN Tax Increment Financing District to include references to the Redevelopment Plan for Richfield Redevelopment Project Area. The modifications to the ILN Redevelopment Plan and ILN Tax Increment Financing Plan represent a continuation of the goals and objectives set forth in the original Redevelopment Plan and Tax Increment Financing Plan. Generally, the substantive changes include the authority to spend tax increments generated from any of the HRA's eight tax increment financing districts in the Richfield Redevelopment Project Area. In addition, a reduction in the original net tax capacity of ILN Tax Increment Financing District is contemplated in this modification through the reduction in the size of the tax increment financing district. Because the original net tax capacity of the parcel is higher than the current tax capacity, the Tax Increment Financing Plan for the ILN Tax Increment is being formally modified. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 and the Redevelopment Plan for the ILN Redevelopment Project Area and Tax Increment Financing Plan for the ILN Tax Increment Financing District dated October 21, 1985 and September 18, 1989 is recommended. Modification No. 3 Redevelopment Plan for ILN Redevelopment Proiect Area Statutory Authority Statement See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Map of Project Area List of Parcels, and Leaal Description The boundary for ILN Redevelopment Project Area is not being modified. References to the area in which tax increments may be expended can be found Appendix A and Appendix B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Public Purpose Statement See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. 11 Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Modification No. 3 Tax Increment Financin Plan for ILN Tax Increment Financin District Statement of Goals and Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Estimated Project Costs This modification authorizes the HRA to expend tax increment from the ILN Tax Increment Financing District for qualified activities identified in the budget of any of the Tax Increment Financing Districts. Properties to be Included in the Tax Increment Financina District Pursuant to Minnesota Statutes, Section 469.175, Subdivision 4, the Tax lncrement Financing Plan is being modified to reduce the geographic area of the tax increment financing district. The parcel to be eliminated has a current net tax capacity of 582,900 and an original net tax capacity of 5179,850 for taxes payable in 1993. Because the original net tax capacity exceeds the current net tax capacity, the tax increment financing plan is being modified to reflect a reduction in the original net tax capacity of the ILN Tax Increment Financing District. The amount of annual tax increment contemplated in the Tax Increment Financing Plan for the ILN Tax Increment Financing District was approximately 52,211,000. Because the tax increment generated from the ILN Tax Increment District in 1993 is expected to be substantially less than originally disclosed in the tax increment financing plan (approximately 5200,000 in tax increment prior to the removal of the parcel and approximately 5325,000 in tax increment after the reduction in the original net tax capacity?, no additional impacts upon other taxing jurisdictions is contemplated in this modification. The parcel to be eliminated from the ILN Tax Increment Financing District is listed below: Parcel ID # 33-028-24-43-0019 The Executive Director of the HRA is authorized to notify the county auditor of the modification to the original net tax capacity of the ILN Tax Increment Financing District. 12 Modification #2 to Redevelopment Plan for CABA Redevelopment Project Area and Modification #2 to Tax Increment Financing Plan for CABA Tax Increment Financing District June 14, 1993 Introduction The following text represents a modification to the Redevelopment Plan for the CABA Redevelopment Project Area and the Tax Increment Financing Plan for the CABA Tax Increment Financing District to include references to the Redevelopment Plan for Richfield Redevelopment Project Area. The modified Redevelopment Plan and Tax Increment Financing Plan represent a continuation of the goals and objectives set forth in the original Redevelopment Plan and Tax Increment Financing Plan. Generally, the substantive changes include the authority to spend tax increments generated from any of the HRA's eight tax increment financing districts in the Richfield Redevelopment Project. Area. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 and the Redevelopment Plan for the CABA Redevelopment Project Area and Tax Increment Financing Plan for the CABA Tax Increment Financing District dated January 19, 1988 is recommended. Modification No. 2 Redevelopment Plan for CABA Redevelopment Project Area A. Statement of Public Purpose See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. C. Description of the Redevelopment Project Area The boundary for CABA Redevelopment Project Area is not being modified. References to the area in which tax increments may be expended can be found Appendix A and Appendix B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. D. Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. 13 Modification No. 2 Tax Increment Financing Plan for CABA Tax Increment Financing District A. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statement of Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. G. Estimate of Costs This modification authorizes the HRA to expend tax increment from the CABA Tax Increment Financing District for qualified activities identified in the budget of any of the Tax Increment Financing Districts. 14 Modification #7 to Redevelopment Plan for PASSS Redevelopment Project Area and Modification #1 to Tax Increment Financing Plan for PASSS Tax Increment Financing District June 14, 1993 Introduction The following text represents a modification to the Redevelopment Plan for the PASSS Redevelopment Project Area and the Tax Increment Financing Plan for the PASSS Tax Increment Financing District to include references to the Redevelopment Plan for Richfield Redevelopment Project Area. The modified Redevelopment Plan and Tax Increment Financing Plan represent a continuation of the goals and objectives Set forth in the original Redevelopment Plan and Tax Increment Financing Plan. Generally, the substantive changes include the authority to spend tax increments generated from any of the HRA's eight tax increment financing districts in the Richfield Redevelopment Project Area. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, .1993 and the Redevelopment Plan for the PASSS Redevelopment Project Area and Tax Increment Financing Plan. for the PASSS Tax Increment Financing District dated December 19, 1989 is recommended. Modification No. 1 Redevelopment Plan for PASSS Redevelopment Project Area A. Statement of Public Purpose See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area,. dated June 14, 1993. B. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. C. Description of the Redevelopment Project Area The boundary for PASSS Redevelopment Project Area is not being modified. References to the area in which tax increments may be expended can be found Appendix A and Appendix B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. D. Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. 15 Modification No. 1 Tax Increment Financing Plan for PASSS Tax Increment Financing District A. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statement of Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. G. Estimate of Costs This modification authorizes the. HRA to expend tax increment from the PASSS Tax Increment Financing District for qualified activities identified in the budget of any of the Tax Increment Financing Districts. 16 Modification #2 to Redevelopment Plan for Redevelopment Project Area A and Modification #2 to Tax Increment Financing Plan for Tax Increment Financing District A-1 and Modification #1 to Tax Increment Financing Plan for Tax Increment Financing District A-2 June 14, 1993 Introduction The following text represents a modification to the Redevelopment Plan for Redevelopment Project Area A and the Tax Increment Financing Plan for Tax Increment Financing District A-1 and the Tax Increment Financing Plan for Tax Increment Financing District A-2 to include references to the Redevelopment Plan for Richfield Redevelopment Project Area. The modified Redevelopment Plan and Tax Increment Financing Plans represent a continuation of the goals and objectives set forth in the original Redevelopment Plan and Tax Increment Financing Plans. Generally, the substantive changes include the authority to spend tax increments generated from any of the HRA's eight tax increment financing districts in the Richfield Redevelopmenfi Project Area. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 and the Redevelopment Plan for Redevelopment Project Area A and Tax Increment Financing Plans for Tax Increment Financing District A-1 and Tax Increment Financing District A-2 dated July 16, 1990 and July 20, 1992 is recommended. Modification No. 2 Redevelo ment Plan for Redevelo ment Project Area A A. Statement of Public Purpose See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. C. Description of the Redevelopment Project Area The boundary for Redevelopment Project Area A is not being modified. References to the area in which tax increments may be expended can be found Appendix A and Appendix B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. D. Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. 17 Modification No. 2 Tax Increment Financing Plan for Tax Increment Financing District A-1 A. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statement of Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. G. Estimate of Costs This modification authorizes the HRA to expend tax increment from the Tax Increment Financing District A-1 for qualified activities identified in the budget of any of the Tax Increment Financing Districts. W. Restrictions of Pooling Tax increments generated from Tax Increment Financing District A-1 may be expended outside the boundary of Tax Increment Financing District A-1 pursuant to Minnesota Statutes, Sections 469.1763 and 469.175, Subdivision 8. 18 Modification No. 1 Tax Increment Financing Plan for Tax Increment Financing District A-2 A. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statement of Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. G. Estimate of Costs This modification authorizes the HRA to expend tax increment from Tax Increment Financing District A-2 for qualified activities identified in the budget of any of the Tax- Increment Financing Districts. W. Restrictions of Pooling Tax increments generated from Tax Increment Financing District A-2 may be expended outside the boundary of Tax Increment Financing District A-2 pursuant to Minnesota Statutes, Sections 469.1763 and 469.175, Subdivision 8. 19 Modification #2 to Redevelopment Plan for Redevelopment Project Area B and Modification #2 to Tax Increment Financing Plan for Tax Increment Financing District B-1 and Modification #1 to Tax Increment Financing Plan for Tax Increment Financing District B-2 June 14, 1993 Introduction The following text represents a modification to the Redevelopment Plan for Redevelopment Project Area B and the Tax Increment Financing Plan for Tax Increment Financing District B-1 and the Tax Increment Financing Plan for Tax Increment Financing District B-2 to include references to the Redevelopment Plan for Richfield Redevelopment Project Area. The modified Redevelopment Plan and Tax Increment Financing Plans represent a continuation of the goals and objectives set forth in the original Redevelopment Plan and Tax Increment Financing Plans. Generally, the substantive changes include the. authority to spend tax increments generated from any of the HRA's eight tax increment financing districts in the Richfield Redevelopment Project Area. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 and the Redevelopment Plan for Redevelopment Project Area B and Tax Increment Financing Plans for Tax Increment Financing District B-1 and Tax Increment Financing District B-2 dated July 16, 1990 and July 20, 1992 is recommended. Modification No. 2 Redevelopment Plan for Redevelopment Project Area B A. Statement of Public Purpose See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statutory. Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. C. Description of the Redevelopment Project Area The boundary for Redevelopment Project Area B is not being modified. References to the area in which tax increments may be expended can be found Appendix A and Appendix B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. D. Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. 20 Modification No. 2 Tax Increment Financing Plan for Tax Increment Financing District B-1 A. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statement of Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. G. Estimate of Costs This modification authorizes the HRA to expend tax increment from Tax Increment Financing District B-1 .for qualified activities identified in the budget of any of the Tax Increment Financing Districts. W. Restrictions of Pooling Tax increments generated from Tax Increment Financing District B-1 maybe expended outside the boundary of Tax Increment Financing District B-1 pursuant to Minnesota Statutes, Sections 469.1763 and 469.175, Subdivision 8. 21 Modification No. 1 Tax Increment Financing Plan for Tax Increment Financing District B-2 A. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. B. Statement of Objectives See also the Statement of Goals and Objectives found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. G. Estimate of Costs This modification authorizes the HRA to expend tax increment from the CABA Tax Increment Financing District B-2 for qualified activities identified in the budget of any of the Tax Increment Financing Districts. W. Restrictions of Pooling Tax increments generated from Tax Increment Financing District B-2 may be expended outside the boundary of Tax Increment Financing District B-2 pursuant to Minnesota Statutes, Sections 469.1763 and 469.175, Subdivision 8. 22 APPENDIX A MAP AND DESCRIPTION OF RICHFIELD REDEVELOPMENT PROJECT AREA A-1 a~ ~- r a`wo o ~,. ti q ~ ~ V15 ~ rii rO ~ ~1.... '~ 2 f ~~ tat't ~~•'+'~ ~ ~• ` ` real lift [. ~a. ~~~ Msit scot L t. Q i rset rsit {~~ Lam" ~...j~~ tfyy'~tsfCQR xpt:3dttM~ft ,. ~ ~'1 ,~~( ~ ~ ~ t~r~( i rs4t ,µ ii y {~~'~~~ L-~~ ~~ r- tt a of !l r,~y Lam" ~ ~ G~{~`~ rr zt ~wtnoata Q r-~1 ~~~ ~~ ` r- of 11141 ~~ a~ Q ~Q~ , ,vrra ss £1 ~,~j ~ ~~ ~, ScwMtr~ iµ t1 ~ 7gAd p ~ Q ats ~ytT1iY~ i* ~ C ~~ 1 ~swrii .~Y C1R'w' ~ ~ ~ ~~ 5t131.3i' ..~ ~~ ]~ H '3rf ~~ t''; r- ~i ~i ~ Q ~1 ~~ lwodtfd >~~ ~ ~j ~Ci~ ~ti ~~ ~ t~C_.~ -3l~Y3'` 1~ ~S j k ~ 0 Y ~Q~~({ .j iaT'yYw-~ . l~~ F;l Y~ ~ ~ ~ ,~j ~~ s ~3Y0~ ~t =` `'fir/j,T ,• OM/A111 2!~ i ~ ! NY`s ~o>;'~b ~ ~ wY OK4~ ,3~Y xw~a 1~ , ~~ ' ~ ;i w~ • MY~ tw yr9110~ ~ , ~~ wr41M3113 xo,~w ~ ~ t ~ stwows ~1 13111'1° '~ ~~ ~ ~ 110ury . MAR ~I~-~ ~+^- _y ~ i~ ~s ~'ir ~" s yt e.. 111sA81+SYK' .f ice, ••+ltrr .= S's ~' ~' x, s 3 « w r '~ Legal Description of Richfield Redevelopment Project Area Boundary Starting at the intersection of the Richfield west city line and 66th Street, following east on 66th Street to Queen Avenue, thence north to 65th Street, thence west to the rear lot lines of the properties on the east side of Russell Avenue, thence north on said rear property lines to the north city line, thence east to Lyndale Avenue, thence south to 64th Street, thence east to First Avenue, thence south to 66th Street, thence east to 11th Avenue, thence north to the north city line, thence east to Bloomington Avenue, thence south to 63rd Street, thence east to 16th Avenue, thence south to the south border of Taft Park, thence east to 18th Avenue, thence north to 63rd Street, thence east to T.H. 77, thence south to the south city line, thence west to Interstate 35W, thence north to 73rd Street, thence west to Penn Avenue, thence south to 74th Street, thence west to Sheridan Avenue, thence south to 76th Street, thence west to the west city line, thence north to the point of beginning at 66th Street. A-3 APPENDIX B MAP OF RICHFIELD REDEVELOPMENT PROJECT AREA AND REDEVELOPMENT PROJECT AREAS AND TAX INCREMENT FINANCING DISTRICTS B-1 ~~ X 0 /Z a Q w ~~ x x __ ,L ~ ~ os . ~ : : ---s---~ ..1f `-' ~ ~. ~ Nf10Nr1f ~~~ ~ V G ~ ~.\ u "" n~r.~ f10117/W01 S~ ___ __._ ']MIlY10M Q ']M YrOYJ ~ L-~.-' - ~--J r 1 t 1 Q .... _ .111 NOt1N1 .• ~ •.•• • • I MO11NIw007 W to ..... ~ :. aoo .1.1 .1 - .•~,~•., s w .Ifi '~':Q'p4 A '• ~0~ rlfl ~ Q ,:• :•:• Q ~~ d •' 0~0 ~ n n ~ r1 11 ~ V '~'- • o ~ ~, ~ OOD ~ rlol o ~ .I GI . ODD lom] ~ I s W a Q ~' ~ lone] m H / • . , ~ ~ ofrolNO li e ~ :. ~ ,~ ~" .:•{ OOO 1 OOr01N0 ~/ W ; ~ ~ ~ ..•' 000 W N 1rnwn,oe .~ ~ ~ ` o~~ ~ 1nlwmm ~ ~. fe %rw ~w NYN ~ ~ .~:.: i i_ O ~ /Nr1%ro , I ~rl :.~. •.•~""•~•,. w « ;:.... 1 ']Ar owruYOr ~"' ~Ar aNr11Ya •• r V N MO1Nn7 MO1N117 L . Z O Z 1N]A]lf . ~ CEO `--~ LM]A]Lf ~ C .•::.• :. . •' ... .. © ']Ar 1711001N - ~ V a 11]anrlf I ~ ~ ` ~ '':~:•.ti;': 11]asnlf ~ ~p N1YOfIlN]M II O O ~ AYM11111 ~ 11 ~~ - - - .• AYnK1111 ' ^~1 ,wrsr]v r ~~~}f%fv ~: ":' .:~::: -'- tt..:.:: 1Nrfr]lr 41 .. J Z II ..... • Iii>'r:i ONrYf ~ C W ~ ONtYf Ij' 1 •~. :::~' • !`:i::>' 131YYrN 131YYtN ~ I ~ j`":' .: 'Ti're ~' ..:. ... .. siww : ii:•i:.;..... ; :;: ' -•~ -]Ar ]1rONA1 ~ L Q O W MOIYOIr ~ ;'•;:::': ', ::;:yk?• NOIYOIr • _ 1NrAYf I~ ''+vi v.•: •::,'..• 1NrAip W J ~ ~ :~::. %r,loo xr!'wo ,I ~'• ~ ~( ~ • ~ ~+ _ :::: 1NMn0 (Q Q > Z LIOIOU •'`~~~ -~t.ti =_ `` ` ~ :{:/ 1MORiW 11f~ ~'~ W ~ • :• r::•::• ~ A>~::>.:::: Q lOlofwnN ~.... lOlofwnN Q....:•:~'' •.•.• ~ ~ Nrool -' ~ •'•'•'~ ~~ Nrsol •:•:.•::•:•: •:•:' i NreYOw •' NrfYOw rte, ,•-•~~ v NO1M]N •• "~ ~••• ~• 8 i~~ NOlA7N ~ ..•... . N]]n0 :i;::•~.~:~~''"~':' • • s M :::::::::::: L"~JI jl N]]M 11]1fnY ::....::::::: ..... ~ • ~ ~ ~~•--.^•~~•~p ~ ~1.;:~:V::': '•. t 111]itf1Y NIOIY]Nf ~~5n~^C- • ~ "-"° ~ w ~ {Y~ ~ ••~ ~ ~• I~ Mr01Y]Nf frwONl r LuJ'ol : ~ ~ 5::: :•:::: :•: •:•:•:•: •: :•:•: •: :•:: ;~1r110N1 NOlYfI ~ ~~ I 0 « • • • I NOlYfI 1N7]NIA ~ ~~ ~ 1 M ~ ~ ..: ••• •••• 11N]ONIA . NYMNfrM 1 C ---~~~ •• C ~ ~ ~~.:•.~:.•• ••._ " NYf1/NCtM C b ~~ ~ G N ~ ~ K ~ op ~ N ~ ~ ~ ~ ~ ~ ~ ~~ 7 Z ! t ! w f C 2 t ~ t ~- a' ~ ` € ~ x ~ o h B-2 HRA RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY (NAND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION REaUESTiNG THE CITY COUNCIL OF THE CITY OF RICHFIELD TO CALL FOR A PUBLIC HEARING ON THE ESTABLISHMENT OF RICHFIELD REDEVELOPMENT PROJECT AREA, MODIFICATIONS FOR CERTAIN REDEVELOPMENT PROJECT AREAS AND FOR MODIFICATIONS FOR CERTAIN TAX INCREMENT FINANCING DISTRICTS BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield as follows: Section 1. Recitals. 1.01 The City Council (the "Council") of the City of Richfield, Minnesota (the "City") together with the Housing and Redevelopment Authority (the "HRA") in and for the City of Richfield, Minnesota, have established the Lyndale-Hub-Nicollet Redevelopment Project Area ("LHN Project Area"), the Interstate-Lyndale-Nicollet Redevelopment Project Area ("ILN Project Area") and the Interstate-Lyndale-Nicollet Tax Increment Financing District ("ILN District"), the Cedar Avenue Business Area Redevelopment Project Area ("CABA Project Area") and the Cedar Avenue Business Area Tax Increment Financing District ("CABA District"), the Penn Avenue and Sixty Sixth Street Redevelopment Project Area ("PASSS Project Area") and Penn Avenue and Sixty Sixth Street Tax Increment Financing District ("PASSS District"), Redevelopment Project Area A and Tax Incremenfi Financing District A-1 ("District A-1 ") and Tax increment Financing District A-2 ("District A-2"), and Redevelopment Project Area B and Tax Increment Financing District B-1 ("District B-1 ") and Tax Increment Financing District 6-2 ("District B-2"). 1.02 The Council and HRA have adopted and modified from time to time the Redevelopment Program and Plans and Tax Increment Financing Plans relating to each of the respective Project Areas and Districts. 1.03 Tax increments from each District and Project Area have historically been expended on eligible costs within the boundaries of each respective Project Area. 1.04 The HRA desires to expend tax increments among the Project Areas for eligible costs to achieve goals and objectives stated in each of the Redevelopment Plans and Program and Tax Increment Financing Plans. 1,05 The HRA has determined that the most efficient means possible to accomplish the goals and objectives would be to establish the Richfield Project Area encompassing areas. of the City located within the existing Project Areas and including additional portions of the City not previously located in an existing Project Area. 1.06 The HRA has determined that the establishment of the Richfield Project Area would not extend the termination dates of the Project Areas or Districts nor would result in the establishment of a new tax increment financing district. Section 2. HRA Aogroval. 2.01 The HRA requests that the Council call for a public hearing to be held on June 14, 1993, to consider the establishment of Richfield Redevelopment Project Area and the adoption of the Project Plan relating thereto; the modification to the Redevelopment Program and Plans and Tax Increment Financing Plans relating to: (a) the LHN Project Area (b) the ILN Project Area and ILN District (c) the CABA Project Area and CABA District (d) the PASSS Project Area and PASSS District (e) the Redevelopment Project Area A and District A-1 and District A-2 (f) the Redevelopment Project Area B and District B-1 and District B-2. 2.02 The HRA requests that the Council direct the Executive Director and staff to transmit the Redevelopment Project Plan and modified Redevelopment Program and Plans and Tax Increment Financing Plans to School Board of School District No. 280, School Board of School District 287, the County Board of Hennepin County and the Planning Commission of the City of Richfield according to Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as amended. Passed by the Housing and Redevelopment Authority of the City of Richfield, Minnesota this day of , 1993. ADOPTED: Thomas E. Harms, Chairperson ATTEST: Larry Wozniczka, Secretary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 15 Agenda April 19, 1993 Issue Statement: Authorization to initiate a housing program with the Twin Cities Habitat for Humanity (Habitat) and acquire 6225 14th Avenue and 6310 15th Avenue. Background: With encouragement from the HRA and within the context of the Richfield Rediscovered and New Home Programs, staff has been working with Habitat to develop a scattered site home ownership program. A potentially successful process has recently evolved. Two sites with housing in very poor condition are available for redevelopment. Habitat is interested in developing the site at 6225 14th Avenue as soon as possible. A target start date is June 1, 1993. The site at 6310 15th Avenue could follow after satisfactory progress with the first site. Representatives of Habitat, Ryan Karis, the staff construction manager,~and John Oehlke and Jim Lincoln, volunteers serving on the site selection committee, are available at the board meeting to discuss Habitat. Attachments to this letter further describe Habitat. Habitat is a faith-based developer of decent, affordable housing for families with very low incomes. Habitat builds new or renovates old and vacant single-family detached homes. Habitat utilizes volunteers, donated materials, donated funds, and properties either donated or acquired for $1. Through these methods, Habitat is able to sell its homes to families with very low incomes. Approximately 40,000 families in the Twin Cities pay 50% or more of their income for housing, according to 1990 Minnesota Housing Finance Agency figures. Often, "affordable" housing has meant too small, poorly maintained and unsafe. Habitat meets needs by providing home ownership opportunities that cost families no more than 30 percent of their annual income. The package of services: volunteer labor and donated materials, investment by the buyer of time and labor, and home ownership counseling services during and after project completion offer a permanent solution to .housing needs.. Habitat has experienced no defaults or foreclosures. The activities proposed for Richfield are coordinated through the Southside Chapter of Habitat. There are five chapters to Twin Cities Habitat. The Southside Chapter covers the southwest metro area, which includes Richfield. For this first project, experienced southside volunteers would constitute the core construction team. Richfield's Hope Presbyterian Church has already expressed an interest in supporting a project and would help establish a local base of support for future projects. The two subject properties were identified by the HRA in 1992 for acquisition through the Richfield Rediscovered program, affordable homes initiative. A price of 536,000 has been negotiated to purchase 6225 14th Avenue. Sufficient Richfield Rediscovered monies are available for the HRA to acquire and develop the 14th Avenue property. A price of 545,000 has been negotiated to purchase 6310 15th Avenue. CDBG funds anticipated to be available in July, as authorized by the City Council, would be utilized to acquire and develop the 15th Avenue property. The HRA would acquire the 15th Avenue property from the City and then sell to Habitat. If Habitat is not prepared to develop the 15th Avenue property when the HRA is able to sell, a development in cooperation with Vo- Tech could be considered. In each transaction, a development agreement between the HRA and Habitat is required and a public hearing must be held prior to the HRA authorizing the sale to Habitat. Recommended Motion: It is recommended that the HRA: 1. Adopt the attached resolution which authorizes the Chair and Executive Director to take those actions necessary to acquire the properties at 6225 14th Avenue for 536,000 and 6310 15th Avenue for 545,000. 2. a) authorize staff to finalize plans and a development agreement and schedule a public hearing for the May HRA meeting for the purpose of selling 6225 14th Avenue to Habitat, and b) authorize the Executive Director to request the City Council to consider the purchase of 6310 15th to sell to the HRA to initiate a Habitat or other affordable housing initiative. Basis of Recommendation: 1. The properties meet program requirements for acquisition and are identified in the plans previously approved by the HRA. 2. Funding for acquisition is available. 3. The owners have voluntarily indicated an interest in selling their property to the HRA. 4. The Planning Commission has found the acquisition and disposition of these properties for single family housing to be consistent with the Comprehensive Plan. 5. Twin Cities Habitat for Humanity, an experienced and capable non-profit developer, is interested in a Richfield program. 6. Community support for a Habitat project is evident. Alternative Recommendation: 1. Do not authorize acquisition. 2. Do not authorize finalizing a development with Twin. Cities Habitat for Humanity. Discussion/Decision Mode: The development agreement and development plans will be presented to the HRA in May for consideration. If the HRA concurs, a June 1993 start is envisioned at 6225 14th Avenue. Respect; ly submitted, Ja Prosser Exec t`ve Director JDP:cak RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AUTHORIZING THE ACQUISITION OF 6225 14TH AVENUE AND 6310 15TH AVENUE WHEREAS, the Housing and Redevelopment Authority in ,and for the City of Richfield, Minnesota (HRA) desires to purchase certain real property pursuant to and in furtherance of the Richfield Rediscovered Redevelopment Project (Project) heretofore adopted by the City of Richfield (City) and the HRA, said real properties being described as follows: 6225 14th Avenue; Lot 20, Block 1, Nokomis Gardens Rearrangement of Block 1, 2, 3, 4, and 5 Girard Parkview Addition; 6310 15th Avenue; Lot 3, Block 2, Nokomis Gardens Rearrangement of Block 1, 2, 3, 4, and 5 Girard Parkview Addition; and WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the properties meet all program requirements for acquisition; and WHEREAS, funds have been provided by the City Council and HRA through the Richfield Rediscovered and.New Home Programs and are available for acquisition; and WHEREAS, the Planning Commission has made a finding that acquisition and disposition of these parcels for residential purposes is consistent with the Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. That purchase prices are approved as follows: Address 6225 14th Avenue 6310 15th Avenue Appraised Value $36,000 545, 000 2. That the Chair and Executive Director are authorized to take those actions necessary to purchase the property at. 6225 14th Avenue from the seller and 6310 15th Avenue from the City. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield this 19th day of April, 1993. Thomas E. Harms, Chairperson ATTEST: Lawrence Wozniczka, Secretary EXHIBIT A A TYPICAL NEW CONSTRUCTION BUDGET FOR HOMES DEVELOPED BY HABITAT Amount of Estimated Value Estimated Item Cash Paid of Donation Total Value Vacant Lot $ 1 $19,999 $20,000 Architects S 250 S 1,750 S 2,000 Permits & Fees S 1,000 S 0 $ 1,000 Materials $17,000 513,000 $30,000 Labor,. Unskilled S 0 515,000 515,000 Labor, Skilled 514,700 $ 0 $14,700 Legal Fees $ 49 $ 451 S 500 Insurance S 1,000 $ 0 $.1,000 Total 534,000 550,200 $84,200 EXHIBIT 'B 11 Twin Cities Habitat forHumanity Habitat for Humanity wants to Qliminate substandard housing throughout the world! Habitat for Humanity was founded 17 years ago in Americus, Georgia for just this purpose. Since then it has grown tremendously and Habitat for Humanity affiliates are now creating simple, decent, affordable housing in more than 750 cities and towns in the United States and 38 countries around the world. Habitat volunteers have built nearly 20,000 homes worldwide! _ • Twin Cities Habitat for Humanity began operating in the Twin Cities 8 years ago. In our first seven years, 60 low-income families received the opportunity to purchase their.own homes. Last year alone, Twin Cities Habitat completed eighteen homes and started eight more! in the months ahead, we hope to repeat our 1992 successes and work on creating 30 more homes for families-in-need. Twin Cities Habitat for Humanity obtains properties as donations from private individuals and congregations. Both St. Paul and Minneapolis make available to Twin Cities Habitat, for a cost of $i .00, vacant, boarded-up homes. These comprise a majority of homes we can.rehabilitate for $20,000 on average. Twin Cities Habitat builds new homes for an average cost of $35,000. The families to whom Twin Cities Habitat sells homes have an average annual gross income of $i 2,000. This income level precludes these families from obtaining traditional mortgages, and therefore lessens the chance for them to own their home. Habitat for Humanity exists for these families. Habitat for Humanity believes families need more than charity to break out of poverty -they need capital. 'The most effective way for the poor to acquire capital is to enable them to own their homes. For several generations, home ownership has been the primary means whereby families in the United States have been able to secure a better future for themselves. In the Twin Cities and around the country, Habitat for Humanity does what no other organization la able to do: create good,. quality homes which families living at or.near the poverty level can afford to own. Each family selected to purchase a home from Twin Cities Habitat for Humanity invests themselves in the Habitat program by working 250 hours on their own house and 100 hours on another Habitat home. Twin Cities Habitat then sells them the home without charging any interest. Home payments are scheduled so monthly payments do not exceed $265 • $300. Habitat for Humanity supporters in the 7-county metro area include more than 3,000 volunteers, 4,000 individual and business donors, and 250 congregations. There is always room within Habitat for additional people to join the company of generous citizens who share the belief that all people deserve a decent home in which to live. Because so much of our work is done by volunteers, Twin Cities Habitat is able to keep administrative and fund-raising costs at a. minimum. For every dollar donated to our work, more than 88 cents goes to help families in need: Everyone who makes a gift to Twin Cities Habitat receives our quarterly newsletter, Habitat Herald which keeps you updated on a!1 our building activityl P.O. $ox 7053 Minneapolis, MN 55407-0053 612-332-3372 (Office) 612-332-0640 (Fax) l~ R`' 1~ ~ ~ ~ a x~ ~ ~' ~' u ~' vti ~~ ~ ~ ~x ~ ~ ~ O w Q rfi + a '~ V ~ ~ ~ ~ ~ ~ Z ~a ~ ~ A N 4 /^~ i~'~ s CITY OF RICHFIELD, MINNESOTA Council Letter No. 125 HRA Letter No. 14 Agenda April 19, 1993. Issue Statement: Receipt of disclosure statement and discussion of employee participation in local business. Background• Kaye Wallace, spouse of Community Development Director Byron Wallace, has indicated interest in operating the new Baskin- Robbins ice cream store at the HUB. Minnesota Statutes require that an employee of a Housing and Redevelopment Authority disclose financial interest or possible conflict and that such statement be entered into the minutes of the HRA meeting. The City Council should also be aware of the financial interest. Byron Wallace may have a financial obligation in the sublease and franchise. Byron Wallace may assist in the operation of the franchise business operation during non-Richfield City Hall business hours, however, Kaye Wallace would be responsible for the operation of the business on a daily basis. The portion of the HUB shopping center that includes the Baskin- Robbins has not benefited from any tax increment financing. Attached is a report from the Assistant City Attorney reviewing applicable state law, City code and charter provisions relating to conflict of interest policies. The basic conclusions of the report are that there are no statutory provisions or charter provisions restricting the purchase and operation of the business. There are provisions that provide for disclosure of interest if the business would, at some future time, become involved in a contractual relationship with the City or HRA. The attached disclosure is provided for that reason. Recommended Motion: HRA: The HRA should receive the disclosure statement and enter it into the minutes of the .meeting. City Council: The City Council should take notice of the disclosure. Basis for Recommendation: The legal opinion of the Assistant City Attorney is attached. Also attached is the disclosure statement that is consistent with the requirements as outlined. Alternative Recommendation: 1. The Council and the HRA may decide to impose additional restrictions regarding an employee's and employee's immediate family operating a business within the City. 2. The City Council may also decide to: • Amend the City Charter to include employees as well as public officials. • Adopt a disclosure policy for City employees similar to -those requirements imposed on HRA employees. • Adopt a policy similar to the requirements of State Statute but which broaden the proscribed conflicts to include those that affect personal as well as financial interest. This type of policy would reach situations where City officials or employees have decision making powers over matters that would affect close, personal family ties. It should be noted that the proposed operation of the Baskin- Robbins by Kaye Wallace would not conflict with any of these proposed changes included in Alternative 2. Discussion/Decision Mode: This matter will be presented at the concurrent City Council/HRA meeting of April 19, 1993. Respect lly submitted, Jame Prosser City anager/ Executive Director JDP:cak DISCLOSURE STATEMENT In response to Section 469.009 of the Minnesota Statutes as outlined in an opinion letter. dated April 6, 1993 from Corrine Heine,. Assistant City Attorney, I am submitting-this disclosure statement as Community Development Director and an employee of the HRA. 1. My wife, Kaye Wallace, is interested in operating the Baskin- Robbins ice cream store in the Hub Shopping Center located in the LHN Redevelopment Area. 2. The proposal being considered is a two year lease of the facility as a sublessee, and franchisee of Baskin-Robbins with an.option to renew for two years with a further purchase option of the equipment. 3. Baskin-Robbins is responsible for. obtaining all approvals before turning the facility over to a sublessee. The policy of Baskin-Robbins is to continue as the property lessee for so long as it is used as a Baskin-Robbins store. 4. Documents related to the sublease, franchise and operations would have to be signed by both of us and would be our joint responsibility. 5. Kaye would be the manager of the business and no part of the business could or would be operated out of City Hall in any way. Nor would I take any part in operations during normal City business hours.. 6. There is no conflict of interest that I am aware of. No financial assistance has been received by us or Baskin- Robbins from the City, HRA or anyone else affected. There are no contracts in existence or contemplated between the HRA or City and the business other than a normal license or review as any other such business. I am unaware of any plan by the HRA or City to purchase the real estate. There are no financing plans pending or contemplated that would affect this property. A payment would be made to Baskin-Robbins equivalent to the proportionate share of real estate taxes .paid by Baskin-Robbins to the HUB, part of which are taxes levied by the City and HRA. 7. If a potential conflict of interest should ever arise over any action or issue, it would immediately be referred to the City Manager who would ensure that another employee would be assigned to handle the matter. Submi ed April f'f 1993 l~ ~/;~ Byro J. - Wa lace Community Development Director APR 16 '93 10x23 HOLMES & GRAVEN l~IEMC3RANDUII~ Td: ~'im. Prosser City Manager FROG: Corrine Heixle .Assistant City Attorney DATE; April 16, .1988 RE; Conflict of Ynterest Question Issue P.2 ~3yron Wallace, the l~ireetor of Community Development, {.subsequently referred to ' as 'Employee") has asked wheth$r City ordina,c.cas or palicfes ar state law wauid prevent him from purchasing a business located in the City of Richfield. The busixxesg wauid be jointly awned by Employee and his spouse but would be operated by the spouse . The purchase of the business does Hat require any approvals by the Comt~aunity Development Departmeri.t, and at this time, Employee knows of no Future Head far any zoning or other approval by his department. The business does require s restaurant license and health inspections, which wauid'be pro~rided by the City. Employee is not involved in and does not supervise licensing or inspection. The business is also located in an HRA redevelopment area, and Employee's duties da include working for the HRA. 5'umm~y Conclusion The Employee's purchase of the business does not constitute an. immediate coziflaiat . of interest, and the Employee is Hat prohibited from purchasing the business and continuing in the City's employ. The potential for future conflicts of interest does exist. Should those conflicts arise, state statutes prohibit the Employee from taking part in any IiRA decision or action that would substantially affect the Employee's financial interest, and the Employee is required tv disclose that interest. The common law, rather than a statute, prohibits the Ecnplayse from participating in a City decision that substantially affects the Employee's Financial. interest. As a practice! .matter, that eamman law prohibition should prompt disclosure by the Employee of any potential conflict. Yf adequate disclosure ig made, ha~nrever, and the Employee is sheltered from any participation in. the action or decision, the Eraplayee may awn and operate the business in the City and remain $ City employee. f - Analysis A. ~aeral matters. Conflicts of interest era prohibited both by statute and at cowman law. There axe a number of statutes that relate to conflicts of interest. Many' of those statutes, however, do Hat apply to the instant case. For example, several statutes ors restricted in .scope to ether persons (e. g. , city counci3. members or ecanamic development officers, Minn. Scat. ~# 412.311 and 468.088) . This situation dace not involve 8 CaunCll znsmber ar economic development officer. Uther statutes are re$t~ieted to specific tra7-~se.etion6 (e.g., M31~.. $'tat. ~ 47..87 proh3laits a, p'ublio CM$51388 RC160-2 2 i .APR 16 '93 10:23 HOLMES & GRAVEN P.3 official from participating in the making of any contract) . This s~ituatian does not involve the making of a contract by the City ar HRA. These statutes arise out of ca~a~non law principles, and those principles are ' broader than the specific language of the statutes . That broad principle is that "a [person] cannot serge 'two masters," and that principle extends from council uxembers and oammissioneers, to department heads, to hourly employees. The statutes and case law focus primarily an council members, because those persons are mast often the decision-makers on public matters, but the common law principle applies to public servants at every level. i The discussion below focuses an those statutes and carnmon law' principles that apply to this particular situation. The same statutes, and other statutes, may apply in athex oixcumstances {e,g., public contracts, or conflicts in~ralving council members} . H . Statutes applica'bie to HRA eu~layees . Section 489.008 is the conflicts of interest statute for housing and redevelop- ment authorities. Unlike some other conflicts statutes, Section 468.009 governs not only elected or appointed officials but also employees. The significant. requirements of the statute are sexmmarized below: 1. ]~sclosure regwtred. The statute requires that, "[before taking axe. action or making a decision which could substantially affect the catrmissioner's or an employee's financial interests", the employee miust disclose the. potential conflict. Minn. Stet. 4 469.OQ9, subd. ~ (emphasis added) . loo disclosure is requ#t`ed, however, if the effect on the employee of the decision or act will be no greatex than an other metabera of the same business, professioxt or occupation. Tf the act or decision. does have potential for a substa~etial financial effect, the employee u~ust prepare a written statement that describes the matter requiring action ar decision. and the nature of the potential canf'Lict of interest. The statement must be submitted to the HRA board ~ and entered upon the minutes at the next HRA meeting. The statement must be submitted not inter than. one tweek after the employee becomes aware of the potential conflict of interest. An employee who knowingly fails to submit a required statement or subtrits a false or incomplete statement is guilty of a grass misdemeanor. ' 2. Nonp$rtidpation,. Tf an employee has a potential conflict of interest, . the employee's superior must immediately assign the matter to another employee who does not have a potential conflict of interest. Minn. Stet. ~ 469.1309, subd. 2. The employee is only prohibited from participating in the action or decision; the e~npiayee ig not prohibited from holding public employment if a potential conflict arises . A. knowing violation of this provisions is a grass misdemeanor. 8 . Contracts prolu'bited. HRA commissioners and employees are prohibited from taking part ii~t any manner in making any sale, lease, or coz~.traot in ~svhieh the eommissianer or employee has a. personal financial interest. Minn. Stet. ~ 469.009, subd. 3. {This provision has no immediate application to th4s circumstance, but the HRA does accasian~liy CA85I3$$ AC160-2 ~, APR Z6 '93 1:24 HOLMES & GRAVEN P.4 purchase property, and it could apply in the future.) ~Iiolation of this provisions is a gross misdemeanor 4. Na fence jump. Far ons year after termination of employment, an HRA employee {or commissioner) may not appear personally (ar as an attorney or agent for another) before a evurt ar agency in connection with any proceeding, claim, etc. , in which the HRA is substantially interested, if the subject matter of the proceeding, claim, etc. is one in which the employee took any action or made a decision within the year pr%ar to termination . lk~inn . Stet . ~ 469 , 009, subd . ~ . In effect, the ~, statute creates a two-year ban an switching sides with respect to acticsns or decisions made while employed by the HR,A. 5. Finandlal assistance. An HRA employee or commissioner ma'y' receive financial assistance once only from each program established by the HR.A~ to provide finnancial assistance or fi~nanaing far real prop~±rty {other than rental assistance prag~ms) . Nl~inn. Stet. ~ 489.409, subd. §. This statute does not preclude the Emplaye$ from purchasing a business in the City of Richfield, because the Employee's purchase does not require. any decision ar approval by the Employee in his capacity as an HRA employee. Yt is possible, however, that future HRA decisions ar actions could raise potential conflicts . If the Employee becomes aware of a potential conflict, the disclosure and non-participation requirements of ~ 489.449 will kick i~a.. I3 . Statutes gov'ern' City employees . ~ ~ There is no statute comparable to Section 469.009 that governs city employees. ~, Section 471.87 prohibits government entities from entering into contracts in which a "public official" who has has a personal financial interest, if the offidal has authority to participate in the ma~.ng of the contract. As interpreted by the courts, the statute prohibits the making of such a contract, regardless of wrhether the interested public official participates in the decision. TypicaIly, the cases decided under this statute have involved council members; it is uncertain whether the statute would be extended to department heads or other employees, who generally do not have authority to make contracts. Regardless of how that issue would be resolved, the statute does not apply to this circumstance, because the Employee's business does not contract with-the City or HRA. As an aside, it should be noted that Section 471.88 contains exceptions to the prohibition in Section X71.87. However, it is not necessary to discuss those exceptions hers, because the instant question doss not involve a City or HRA contract. I C. City Charter provisions. The City has adapted a code of ethics which contains requirements substan- tially similar to thrssa 9.n Section 471.87 and Seotfan 469.008. Ssctic~~ .12.04 of the City Charter prohibits a public official from entering into any Contract with the City that is prohibited by law. Section 12.05 of the City Charter mirrors the disclosure ~equiremer~ts of Section X69.009 for "ja]ny public official who in the discharge of said offiais.lls dutiQ~ Ynrotixld b® required to take a~2 action or make 8 deciS3Gn which CA85i388 aci6o-z 3 APR 16 '93 10 25 HOLMES & GRAVEN P.5 would substa~,tially affect such official's financial interest ..." Although Section 12.05 xequires disclosure, it does not specify what should be done after disclosure is made. That is, it does not expressly prohibit the public official with a potential. conflict from participating in the dew's on; however, that prohibition is implied. The mare fundamental issue is whether Chapter 12 of the City Charter applies tc~ the Employee . It does net . Section 12.41 of the City Charter defines a "public affi~ciat" to include "a11 sleeted officials, the City Manager, and all members of boards or commissions, as are authorized under this Charter" ]lastly, avers if Chapter 12 did apply to department heads and emplo~'ees, the instant circumstance does not came within Section 12.05. At the present time, the Employee is not involved in his official capacity in an action ar decision that would substantially affect the Employee's financial interest in the business he is buying. Poter~tfal conflicts may arise in the future, but even then, Chapter 3.2 w~auld net apply because of its ~restrictive definition of "public affiaial." ]~. Common law priudples. Even without statutory cr charter provisions, however, in my opinion, under the common law, a City ar l~ilt,A employee may not take part in a decision or action which could substantially affect the employee's personal axe financial interest. Where a potential conflict exists, therefore, the Employee should disclose the conflict so that an employee without a disqualifying interest can bs assigvned to the task. If the Employee does participate in the deci,sian or action, thane is a risk that the decision or action could be invalidated . E. Adoption of more restrictive policies. You have asked whether the City and HRA may adept conflict-of-interest policies that impale more restrictions an City and HR,A officials and e~aployees thaw are currently imposed under the City Charter or the statutes discussed above. ~'he answer ~to your question is: yes, the City axYd HRA may impose reasonable restric- tivns on employees' aetivlties that create the potential for a conflict of interest ar that create an appearance of impropriety. The need for and scope of such policies is a policy issue for the City Council and HRA Beard to decide. For the purpose of guiding discussion, however, I have - listed some options for the Council and $aard to consider. . 1. Amending the City Charter to cover employees as weA as "public officials . " 2. Adopting a policy for City employees with requirements similar to those imposed an HRA employees by Minn. Stet. ~ 469.009. ~ 3. Adopting a policy similar to the requirements of ~ 4fi9.449 but which broadens the prescribed conflicts to include thane that affect personal as well as financial interests . This type ofl policy would reac]~ situaw bona where City officials or employees have decision making pav~rers over naa~.tters that would affect close personal {e. g. , family ties. ' Conf3iets-of-interest$ policies serve a vaiua'ble purpose, but they also ixlvOlve a delicate baI,az~.ee . The polity should be restrictive enough to prevent abuse and i GA8S1398 ' RC160~2 APR 16 '93 10.25 HOLMES & GRAVEN P.6 i j '; instill public confidence in the deeisiax~-making process, but not sa restrictive that it discourages public employment ar employee participation ix~ the City's cammerc~al and civic affairs . caasisas 5 iiCibO-T CITY OF RICHFIELD, MINNESOTA Council Letter No. 124 HRA Letter No. 13 Agenda April 19, 1993 Issue Statement: Authorization to lease 6318 Nicollet Avenue to a 77th Street relocatee for one year. Background• A residential relocatee at 7646 Lyndale Avenue has brought the construction process for Phase I to a halt as of Wednesday, April 14, 1993. MnDOT will not approve advertising for construction contractors until the relocatee signs a "Waiver of 90 Day Relocation Rights." The relocatee will not sign the waiver until an acceptable relocation has been identified. Despite extraordinary efforts by our relocation consultant, the relocatee has been unwilling to accept a wide variety of options. The only option that he has been willing to accept is a one year lease on 6318 Nicollet. 6318 Nicollet is a rehabilitated, two bedroom, single family house that has been offered for sale as part of the Richfield Rediscovered Program. Renting the house would take the property off the "For Sale" market for one year. Recommended Motion: City Council: 1. The City Council request the HRA to utilize the property at 6318 Nicollet as a relocation resource for the relocatee for a period of-one year. HRA: 1. The HRA authorize the leasing of 6318 Nicollet to the subject relocatee for one year at 5650 per month under the following terms: • A security deposit equal to one month's rent will be paid at the beginning of the lease term. • HRA insure the property for liability and property damage. • The relocatee to have option of purchasing own insurance for personal properties. • No pets. • Yard maintenance to be responsibility of relocatee. • Term of lease: one year maximum. After the one year lease expires, the relocatee would find permanent housing elsewhere. The property would then be offered for sale by the HRA ,under the normal program terms. Basis for Recommendation: 1. Despite extraordinary efforts, this is the only housing the relocatee has been willing to accept as suitable replacement housing. A summary of the relocation process is attached. It is clear that every reasonable effort has been made to provide other acceptable alternatives on a timely basis. 2. If the relocatee does not sign the Waiver of Relocation Rights, letting of the project contract could be delayed two months. 3. Delay in initiating construction would likely cause serious problems. If the relocatee does not sign a waiver, he would be eligible to remain in the. current apartment until May 28, 1993. Assuming a worst case situation, an uncooperative relocatee, a holdover could result and the City would need to obtain an unlawful detainer and could not legally terminate occupancy until 20 days later, or about June 18, 1993. Construction would then not be permitted to begin until two to three months later. With an August or later construction start time, two alternatives are available: delay construction until 1994 or start construction with the risk of very poor, and probably unacceptable, road conditions during the winter. 4. The City Council has previously directed staff to undertake special effort to initiate construction in this calendar year. The timeframe for construction letting has been compressed from the normal 30 month process to approximately 12 months. 5. Staff and consultants have conscientiously followed relocation procedures. The need to look at this unconventional relocation choice is a result of efforts .beyond the City's control. MnDOT and Federal Highway Administration (FHWA) must approve the acquisition of property before offers to purchase can be made and the relocation can formally begin. The acquisition of this property and several others were submitted to MnDOT for review and approval on October 26, 1992. Although a December 1992 approval had been expected, it was not provided until February 23, 1993 despite concerted efforts of staff to expedite this process. 6. The suggested rental price of 5650 per month is approximately 5100 less than an informal estimate of the market rent for this property determined by appraiser. The tenant's income and relocation payment will support a payment of 5650 per month. The rent received should be sufficient to provide a payment in lieu of taxes and repainting walls and replacing floor coverings if necessary. Alternative Recommendation: ~~ 1. Staff has explored the possibility of reviewing other alternatives with MnDOT which would permit advertising to proceed and delay relocation to a later date. MnDOT has stated that this is not acceptable. 2. The project could proceed without the acquisition of-the relocatee's parcel if the City would agree to not seek MnDOT/FHWA funding for expenses relating to this property. Costs related to the property, including acquisition, relocation, demolition and retrofitting of the wall of the adjoining building to remain is approximately $250,000. 3. Direct staff to find an alternative relocation resource. As recounted in the attached summary, significant efforts have already been expended to locate suitable alternative housing. It is most likely that our efforts would not be successful and the project would be delayed and result in increased cost to the City and residents. Discussion/Decision Mode: This matter will be presented at the concurrent City Council/HRA meeting of April 19, 1993. Res~ec~fj{zlly submitted, Jam s Prosser Cit anager/ Exe tive Director JDP:cak SUMMARY OF RELOCATION EFFORTS The relocatee was first visited by Mr. John Connors of Conworth Inc., in October 1992 to begin the process of establishing a working relationship and in anticipation of MnDOT approval of property purchase December 1992. It took the relocatee a long time to accept the project. Initially, an appearance was made before the City Council to protest the project and request a redesign so that a property purchase would not be necessary. Subsequently, the relocatee protested to MnDOT. Eligibility for relocation benefits is established at the time an offer is made to purchase a property. MnDOT/FHWA funding are not available until a property is approved for purchase.. Activity prior to the approval would have resulted in the City losing cost participation in the acquisition and relocation expenses and construction costs for this property. Devising a relocation strategy for this person has been difficult. Mr. Connors and the two other relocation consultants in his office have a total of 55 years of relocation experience and considerable experience in relocating single elderly people. Extraordinary measures have been taken and will be recounted at the meeting by Mr. John Connors. A psychologist was consulted. The ministers at the relocatee's church were asked to intervene and refused. A member of the church, who works in real estate, was consulted but to no avail. Other family members have not been able to help. The regulations are interpreted to require a minimum of three referrals. The referrals must be similar in size and location to the unit from which the person is being moved. It must be affordable. As April 14, Mr. Connors had evaluated 12 potential referrals and personally toured five of them with the relocatee. Although the five units seemed to meet almost all of the relocatee's criteria, they were consistently rejected. Referrals were obtained from private listing companies, advertisements in the Richfield Sun-Current and Bloomington Sun-Current and through an advertisement placed by Conworth in the Star Tribune under Housing Wanted. In anticipation of MnDOT completing a plan review on Wednesday, April 14, a "brainstorming" session was held on Friday, April 9. Attention focused on the 77th Street houses east of Portland Avenue owned by the City. They are vacant and readily available. However, they will be removed this year forcing the relocatee to relocate twice in less than a year. Previous attempts to relocate, which involved interim moves, were rejected by the relocatee. Then the focus shifted to the Vo-Tech houses on Nicollet Avenue. The 6318 Nicollet site seemed to be the more desirable of the two properties. The relocatee stated that he thought about it, prayed about it and consulted with a close friend and agreed to accept the house if formally offered.. As of this writing, 6318 Nicollet is the only property the relocatee has indicated a willingness to move. It can be ready for occupancy on Tuesday, April 20. The relocatee could be in residency on or before April 23. HISTORY OF 77TH STREET - MnDOT RIGHT OF WAY APPROVAL PROCESS 11/91 Federal funding approval. 2/92 City authorized for Federal reimbursement for staff time spent on project - engineering and right-of-way support. MnDOT staff informs City staff that project development is a three year process. City Council goal setting established 77th Street as a top priority. One year process developed by City staff. 6/92 Engineering consultant selection process completed - BRW/OSM team can now begin reimbursable work. 8/92 City staff requested and received an exception from MnDOT and Federal Highway Administration (FHWA) t0 allow a variance in their project development procedures. which allows City to begin to purchase most of right-of-way before final construction limits are established. At least six months time is saved. 10/26/93 Final right-of-way (ROW) plan including all easements and the property at 7646 Lyndale is submitted for MnDOT approval. Expect a two month turn around; approval by Jan. 1. Review is delayed at MnDOT District office. 12/17/93 Repeated phone calls result in District approval of final ROW plan and plan transmittal to MnDOT Central office for final review. MnDOT District staff direct City staff to make all plan status inquiries through the District office.. 1/30/93 Repeated inquiries first through District and finally directly to Central office reveal that final right-of-way plan has been misplaced at MnDOT Central office. Central office staff had mistakenly been reviewing the previously approved preliminary. ROW plan instead of the final ROW plan. 2/5/93 City staff meet with senior MnDOT officials to establish workable interagency communication links for project. 2/24/93 MnDOT officials inform City of final right-of-way plan approval one week after 2/17/93 approval given. City staff has since been trying to recover two months lost time in a time sensitive purchase process. MnDOT CONSTRUCTION PLAN APPROVAL PROCESS 1/93-4/93 In order to expedite review, City sends plans directly to MnDOT division offices with review authority (signals, hydraulics, structure) despite MnDOT request that plan be reviewed sequentially by each division. Result is an accelerated review above concerns of process by MnDOT staff. 4/5/93 MnDOT Director of State Aid Division agrees to a variance in contract advertising procedure which allows the City to advertise one month earlier than normal. 4/14/93 Construction plans ready for advertising. SCHEDULE OF EVENTS FOR THE CONTRACT FOR 77TH STREET ROADWAY CONSTRUCTION PROJECT April 14-21 Finalize PS&E April 21 MnDOT authorizes project. April 30 First ad in construction bulletin May 7, 14 Second and third advertisement May 24 Bid opening, May 30 Special City Council Meeting to recommend award to low bidder. May 31-June 14 MnDOT Equal Employment Opportunity office reviews bid for compliance with Disadvantaged Business Enterprise (DBE) requirements. This stop frequently causes delay. June 21 Following notice by MnDOT, City deposits local share with MnDOT. June 21 Contract sent to various State agencies for approval. Contract form approved. Contractor will normally start work at this time. July 19 Notice of approval of contract by State agencies. July 20 Latest date contractor can mobilize for work assuming no snags in contract preparation. CITY OF RICHFIELD, MINNESOTA Council Letter No.123 HRA Letter No.12 Agenda April 19, 1993 Issue Statement: Consideration of use of the southerly five acres of the Cloverleaf site for a portable concrete batch mixing plant for the 77th Street Project. Background: Seventy-seventh Street will be paved with concrete. The quantity of concrete needed is sufficient to justify the use of an on-site batch plant.. The plant would introduce cost and operational efficiencies into the process. An open site of approximately five acres with relatively convenient access is needed. The City's consultants have identified only one potentially suitable location, the southerly five acres of the Cloverleaf site. Staff is continuing discussion for use of Metropolitan Airports Commission (MAC) property as an alternative site. An update on these negotiations will be available at the meeting. The items which warrant consideration include: 1. Lease - the successful contractor would sign a lease yet to be drafted. Issues included in the lease are environmental controls, waiver of liability, term and hours of operation. 2. Rent - typically a use such as this would not pay rent. The use of the property would be viewed as an "in kind" contribution by the community to support the project. An appraiser familiar with the site and market rents informally valued the use of the property for this purpose at 5138,800 per year or $11,600 per month. 3. Term - a site would be needed for three years, 1993-95. Ideally the lease would permit such a term. An alternative would be one construction season at a time renewable based on performance criteria established by the City and/or HRA. 4. Particulate matter - BRW, the project consultant, has indicated that when such a plant has operated at other locations it has met MN Pollution Control Agency emission requirements. 5. Noise - the operating noise levels would exceed those permitted by the City's noise ordinance given the proximity of a residential zone some 800 feet to the northeast. Another alternative being investigated is the use of power from NSP instead of using gas engines. BRW has indicated a portion of the screenwall could be constructed prior to initiating operation of the batch plant. The screenwall would mitigate the noise to an ordinance acceptable level. The ordinance does contain a provision for a variance which could be granted by the City Council upon application. 6. Restoration - the site would be restored to its previous condition within a reasonable time period once the operation ceased. 7. The low land and wooded areas - use of the southerly five acres would not impact the west central low land nor the northerly oak trees. Recommended Motion: City Council: Request the Richfield Housing and Redevelopment Authority to allow the use of the Cloverleaf site for the purpose of a concrete batch plant for the exclusive use of mixing concrete for the 77th Street Project. HRA: Allow the use of the for one year for use depending on potenti~ become available .for the MAC site will be southerly five acres of the Cloverleaf site as a concrete batch plant. However, 31 extra contract costs, should MAC property the City's use as a concrete batch plant, used instead of the Cloverleaf site. Basis of Recommendation: 1. The use of the site would introduce cost efficiencies into the project. 2. Trucks would be less likely to intrude into the commercial and residential areas. 3. The 77th Street project will benefit the site by improving access and providing adequate storm water drainage such that a future development project will not have to bear the multi .million dollar cost of construction of the storm sewer. Alternative Recommendation: 1. Refuse to support the proposal. 2. Delay consideration. 3. Modify the proposal. Discussion/Decision Mode: The project will soon be bid. The project specifications must identify the availability of the site as it will impact bid prices. Respect lly submitted, Jame Prosser City nager/ Executive Director JDP:cak