10-05-90 agendaHousing and Redevelopment Authority
HRA Letter No. 32
Agenda October 15, 1990
Issue Statement:
Adoption of resolution authorizing the purchase of property under
the Expanded New Home Program.
Background:
In July, 1990, the HRA and City Council approved the Expanded New
Home Program Redevelopment and Tax Increment Financing Plans.
The two basic objectives of the program are to:
1. Create a voluntary market for substandard poor quality
housing; and
2. Provide sites for new homes with features attractive
to families.
In September the purchase of six properties was approved by the
HRA. Eight qualifying properties have been voluntarily offered
to the HRA for purchase in October, 1990 at negotiated purchase
prices. The properties and the recommended purchase price are
listed in the attached resolution. Following acquisition, the
properties would be cleared by the HRA in preparation for the
construction of new single family homes.
• Recommended Motion:
Adopt the attached resolution which authorizes:
1. The purchase of the property at the prices indicated.
2. The Executive Director and HRA Chairperson to execute
purchase agreements.
Basis of Recommendation:
1. The properties meet program requirements for acquisition.
2. The properties were appraised by Ron Lachenmayer of BCL
Appraisals, Inc.
3. Purchase prices negotiated with sellers are based on the
appraisals.
4. The eight sellers have entered into purchase agreements at
the prices indicated in the resolution which total $411,850.
5. Funding for acquisition has been made available by the HRA
and City Council.
6. The owners have voluntarily indicated an interest in selling
their property to the HRA.
0
Alternative Recommendations:
• 1. Not authorize acquisition.
2. Delay acquisition.
Discussion/Decision Mode:
Authorization in October 1990 would facilitate site clearance and
new construction by year end.
Respectful submitted,
James Prosser
Executive Director
JDP:ds
•
0
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING PURCHASE OF REAL
- PROPERTY LOCATED AT
7129 1st Ave. So. 6401 Bloomington Ave. So
6612 2nd Ave. So. 6538 Bloomington Ave. So.
6321 Humboldt Ave. So. 6415 15th Ave. So.
6424 James Ave. So. 6407 15th Ave. So.
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 Expanded New
Home Program Redevelopment Project (Project) heretofore adopted
by the City of Richfield (City) and the HRA, said real properties
being described as follows:
Lot 17, Block 1, "Sheldon Blair's Wooddale"
j Lot 5, "Goodspeed's First Plat"
Lot 24, Block 4, "Ray's Lynnhurst"
Lot 7, Block 3, "Fairwood Park First Addition"
Lot 23, Block 11, "Nokomis Gardens Rearrangement of
Block 7-11 & 12, Girard Parkview"
Lot 8, Block 5, "Nokomis Gardens Rearrangement of
Block 1, 2, 3, 4 & 5, Girard Parkview"
Lot 17, Block 6, "Girard Parkview"
Lot 19, Block 6, "Girard Parkview"
WHEREAS, the HRA is authorized by Minnesota Statutes Section
469.012 to acquire real property within its area of operation;
and
WHEREAS, the properties meet all program requirements for
acquisition; and
WHEREAS, the HRA has caused appraisals of the subject
properties to be made by a qualified independent professional
real estate appraiser and negotiated purchase prices with the
owners; and
WHEREAS, funds have been provided by the City Council and
HRA and are available for acquisition.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. That purchase prices are approved as follows:
7129 1st Ave. So. $58,000
6612 2nd Ave. So. $46,200
6321 Humboldt Ave. So. $50,400
6424 James Ave. So. $46,250
6401 Bloomington Ave. So. $50,000
6538 Bloomington Ave. So. $48,000
6415 15th Ave. So. $56,000
6407 15th Ave. So. $57,000
2. That the Chairperson and Executive Director are authorized
to execute a Purchase Agreement for the amounts set forth
in this resolution.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield Minnesota this 15th day of October,
1990.
• Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 33
Agenda October 15, 1990
Issue Statement:
Public hearing on authorization of the sale of eight Expanded New
Home properties to Marv Anderson Homes, Inc.
Background
In September, 1990, the HRA authorized the selection of Marv
Anderson Homes, Inc. as the builder for the Expanded New Home
Program. Marv Anderson Homes of Bloomington, a division of Pulte
Home Corporation, provides 38 years of building experience, a
reputation for quality construction and service, and the ability
to meet the financial requirements of the program.
In September, 1990, the HRA authorized the sale of six properties
to Marv Anderson Homes for redevelopment with new single family
homes. Development Agreements for eight additional properties
have been negotiated with Marlin Grant, President of Marv
Anderson Homes. These properties are identified in the attached
resolution.
The objective of the development agreement is to achieve the
market rate sale of land and the construction of market rate
single family homes that exceed values which presently exist in
• fully developed neighborhoods. Marv Anderson and the HRA assume
reasonable development risks for this creative concept.
Development requirements also reflect the market rate theme and
have been kept to the minimum needed to meet the HRA's
objectives.
The development agreement requires:
- a minimum market price for eight development sites with
Marv Anderson paying an average of approximately $21,680
per property and a total of $173,440 has been preliminarily
set. Negotiations are continuing. A final resolution in
the attached format will be presented to the HRA at the
meeting with final sale prices for each parcel.
(A further provision provides additional land proceeds to
the HRA if homes with higher values than expected are sold
to the buyers.)
- performance within a timeframe secured by a cash set aside
by Marv Anderson of $33,147 per property or, $265,176
total. This amount equals the HRA writedown and demolition
costs. The HRA can draw on this escrow account if Anderson
fails to perform.
eight new homes with a total range of values approximating
$776,000 to $906,000 replacing substandard homes valued at
• a total of $411,850.
As in September, the development agreement will be contingent
• upon review and approval from Pulte Homes Corporation of the
agreements executed by Marv Anderson Homes. This is essentially
the same development agreement authorized by the HRA in
September.
A public hearing should be held which authorizes the sale of land
to Marv Anderson Homes. The Planning Commission has previously
made a finding that the acquisition and disposition of these
properties for residential purposes is consistent with the
comprehensive plan.
Recommended Motion:
Adopt the attached resolution which authorizes the Chairperson
and Executive Director to execute agreements which sell acquired
Expanded New Home Program sites for development of new single
family homes to Marv Anderson Homes, Inc.
Basis of Recommendation:
1. Marv Anderson Homes, Inc., is an experienced, quality
oriented, capable builder.
2. The HRA has authorized the purchase of properties for
development.
3. A development agreement has been negotiated and executed
• by Marv Anderson Homes, Inc., to initiate development.
4. Builder and HRA risks have been balanced with the intent
of minimizing HRA subsidy and ensuring development
performance.
5. Proper notice of public hearing has been published which
provides the opportunity for the HRA to consider the sale
of the identified properties to Marv Anderson, Inc.
Alternative Recommendation:
Do not proceed with a development agreement with Marv Anderson
Homes, Inc. and terminate or continue the public hearing to sell
the identified properties at a later time.
Discussion/Decision Mode:
Authorization of the sale of properties in October, 1990, would
facilitate site clearance and new construction by year end.
Approval of the agreement by the Pulte Corporation is expected to
be received by mid-November.
submitted,
Jam s' . Prosser
• Exe u ive Director
JDP:ds
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY LOCATED AT
7129 1st Ave. So. 6401 Bloomington Ave. So.
6612 2nd Ave. So. 6538 Bloomington Ave. So.
6321 Humboldt Ave. So. 6415 15th Ave. So.
6424 James Ave. So. 6407 15th Ave. So.
To Marv Anderson Homes, Inc., In Accordance With A Development
Agreement.
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Richfield Minnesota (HRA) desires to develop certain
real property pursuant to and in furtherance of the Expanded New
Home Program Redevelopment Project (Project) heretofore adopted
by the City of Richfield (City) and the HRA, said real properties
being described as follows:
Lot 17, Block 1, "Sheldon Blair's Wooddale"
Lot 5, "Goodspeed's First Plat"
• Lot 24, Block 4, "Ray's Lynnhurst"
Lot 7, Block 3, "Fairwood Park First Addition"
Lot 23, Block 11, "Nokomis Gardens Rearrangement of
Block 7-11 & 12, Girard Parkview"
Lot 8, Block 5, "Nokomis Gardens Rearrangement of Block
1, 2, 3, 4 & 5, Girard Parkview"
Lot 17, Block 6, "Girard Parkview"
Lot 19, Block 6, "Girard Parkview"
WHEREAS, the HRA is authorized to sell real property within
its area of operation after public hearing; and,
WHEREAS, a developer, Marv Anderson Homes, Inc.,
Bloomington, has been identified as the purchaser of the
described property, in accordance with a development agreement;
and,
WHEREAS, the public hearing has been held after proper
public notice; and,
• WHEREAS, the Planning commission has made a finding that the
disposition of the property for residential purposes is
consistent with the comprehensive plan.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. A public hearing has been held and the following properties
are sold to Marv Anderson Homes, Inc., in accordance with a
development agreement with the HRA:
7129 lst Avenue South $
6612 2nd Avenue South $
6321 Humboldt Avenue South $
6424 James Avenue South $
6401 Bloomington Avenue South $
6538 Bloomington Avenue South $
6415 15th Avenue South $
6407 15th Avenue South $
0
2. That the Chairperson and Executive Director are authorized
to execute the Development Agreement with Marv Anderson,
Homes, Inc.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 15th day of October,
1990.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No.34
Agenda October 15, 1990
Issue Statement:
Adoption of resolution establishing just compensation and
authorizing the purchase of 7645 Aldrich Avenue.
Background:
In the fall of 1985, the Interstate Lyndale Nicollet (ILN)
Redevelopment and Tax Increment Financing Plan (Plan) was
approved. The purpose of the Plan was to establish a long range
strategy for redevelopment of the area. The Plan, in accordance
with statutory authority, authorized the HRA to undertake site
assembly activities. An integral part of the Plan provided for
separation of the residential and commercial uses through the
upgrading of 77th Street.
The City Council has authorized the expenditure of Municipal
State Aid (MSA) revenues for purchase of property west of Lyndale
Avenue. MSA funds are derived from state gasoline tax revenues.
Minnesota Department of Transportation (MNDOT) makes the funds
available to cities. The funds may be used for a variety of
activities related to construction of new roads and maintenance
• of existing roads. In this situation, the money is being used to
purchase right-of-way and pay relocation benefits. Site
clearance and road construction will be dealt with later.
To implement the upgrading of 77th Street, it is necessary to
purchase 16 homes. To date, 12 homes have been purchased.
MNDOT rules prescribe the process to be followed when purchasing
property. The property was appraised by Mark Hoffman of Chase-
Brackett Company, a firm which has done appraisals for the HRA in
the past. A certified review appraiser, Mr. Don Hennessy,
reviewed the appraisal report and concurs with the analysis and
the value conclusion for the property. He has recommended
setting just compensation at the value indicated in the
resolution, $65,000. The property is a single family home; wood
shake exterior; about 41 years of age; unfinished basement; two
bedrooms, bath, living and kitchen/dinette on the first floor.
The owner would also be eligible for relocation benefits as
required by state statute and MNDOT procedures.
Recommended Motion:
Adopt the attached resolution which sets just compensation and
authorizes staff to negotiate and purchase the property at the
value indicated. Authorize the Executive Director and HRA
Chairperson to execute a purchase agreement in the amount of just
compensation.
C7
Basis of Recommendation:
1. The property has been identified for acquisition in the
approved Plan.
2. MSA funds are available for the acquisition.
3. The owner has voluntarily indicated an interest in
receiving an offer to purchase.
4. Applicable MNDOT procedures are being followed.
Alternative Recommendation:
Not authorize negotiations and purchase.
Discussion/Decision Mode:
If the dwelling is purchased by the HRA, the owner is desirous of
having the closing as soon as possible so that he could move
before winter.
Respectfu ly submitted,
James D. Prosser
Execu ve Director
JDP:ds
is
0
HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION ESTABLISHING JUST COMPENSATION AND
AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT
7645 ALDRICH AVENUE SOUTH
WHEREAS, the Richfield Housing and Redevelopment Authority
(HRA) desires to purchase certain real property pursuant to and
in furtherance of the ILN Redevelopment Project (Project)
heretofore adopted by the City of Richfield (City) and the HRA,
said real properties being described as follows:
Lot 8, Glenn's Addition, County of Hennepin
WHEREAS, the HRA in and for the City of Richfield, is
authorized by Minnesota Statutes Section 469.012 to acquire real
property within its area of operation; and
WHEREAS, the Project identifies the location of this
property as the site for public improvements to be constructed by
the city; and
WHEREAS, the HRA
• the city to permit the
WHEREAS, the HRA
properties to be made
real estate appraiser
is acquiring these properties on behalf of
a installation of public improvements; and
has caused appraisals of the subject
by a qualified independent professional
to determine its fair market value; and
WHEREAS, a Certified Review Appraiser has reviewed the
appraisal reports, and has prepared a written report setting
forth his opinion as to fair market value; and
WHEREAS, the funds are available from the Municipal State
Aid (MSA) made available by the state to the city.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1. That just compensation is determined to be $65,000.
2. That the Executive Director is authorized and directed to
commence negotiations for the purchase of said real
property.
3. That the Chairman and Executive Director are authorized to
execute a Purchase Agreement for the amount of just
compensation set forth in this resolution.
4. That the Executive Director is hereby directed to notify
in writing the owners of subject properties as soon as
possible that the HRA intends to acquire his/her property.
5. That the conveyance of title to said real properties to
• the city at the appropriate time is hereby authorized.
Passed by the Housing and Redevelopment Authority this 15th
day of October, 1990.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary
•
41
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 35
Agenda October 15, 1990
Issue Statement:
Approval of modification Number 1 to the Cedar Avenue Business
Area (CABA) redevelopment plan and tax increment plan (plans).
Background:
Early in 1988, the CABA plans were approved by the HRA and City
Council. The plans provided assistance to CDP to redevelop the
old Cedar Avenue liquor store site. Tax increment assistance was
provided on a "pay as you go" basis.
It is proposed to amend the plans to accomplish two objectives:
to repay the Cedar Liquor Fund and to make a voluntary
distribution of the available tax increment to the taxing
jurisdictions including the school district. A modification
Summary appears on page 1-1. To easily track the proposal, the
amendment contains three appendices each of which are sources and
distribution statements for taxes payable 1990 (Appendix D-1,
page D-1-1), taxes payable 1991 (Appendix D-2, page D-2-1) and
taxes payable 1992-97 (Appendix D-3, page D-3-1). The appendices
differ in the distribution funds. In years 1990 and 1991, the
• Cedar Liquor Fund is reimbursed and money is distributed to the
taxing jurisdictions. With a lesser payment due the Liquor Fund
in 1991, a TIF District No. 1252 Fund line is added to the
distributions. The increment not distributed will be collected
with the intention of paying the CDP assistance in full prior to
1997. A distribution to the HRA is also included in the same
amount as in the original plan. The modification, however,
delays the initial payment from 1990 to 1991.
If projections are correct, all the payments to CDP could be made
by 1993 or 1994 rather than 1997.
Recommended Motion:
Adopt the attached resolution which 1) approves the modification
subject to a finding by the Planning Commission as to its
conformance with the Comprehensive Plan and 2) requests the City
Council to hold a hearing and approve the modification.
Basis for Recommendation:
1. The modification would permit repayment to the Cedar Liquor
Fund.
2. Excess increment would be distributed to the taxing
jurisdictions, including the Richfield School District.
3. The amount of assistance paid to CDP is not being altered.
0
Alternative Recommendation:
• 1. Not approve the modification.
2. Delay approval of the modification.
Discussion/Decision Mode:
Approval on October 17, would permit Planning Commission review
October 23, and a City Council hearing on November 26 and
implementation in December when the tax increment receipts are
received.
tf_44y submitted,
James,,D. Prosser
Executive Director
JDP:ds
HRA RESOLUTION NO.
• RESOLUTION APPROVING MODIFICATION
NO. 1 TO THE REDEVELOPMENT PLAN
AND TAX INCREMENT FINANCING PLAN FOR THE
CEDAR AVENUE BUSINESS AREA PROJECT;
REQUESTING THE RICHFIELD CITY COUNCIL TO
CONDUCT A PUBLIC HEARING THEREON:
RECOMMENDING APPROVAL OF THE PLANS
BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota (HRA) adopted a redevelopment
plan (Redevelopment Plan) and a tax increment financing plan (TIF
Plan) for the area of the City generally known as the Cedar
Avenue Business Area (Project Area) on January 19, 1988.
1.02. The city council of the City of Richfield (City) held
a public hearing on the Redevelopment Plan and TIF Plan and
approved the Plans on February 22, 1988.
1.03. Changes in the distribution of tax increment revenue
is generated by the Project Area have necessitated modification of
the Plans.
1.04. Except for the modification stated herein the HRA
reaffirms its findings and conclusions as approved in the
original Plan dated January 19, 1988.
1.05. The HRA has caused to be prepared a modified
Redevelopment Plan and TIF Plan which are contained in a document
entitled "Modification No. 1 to the Redevelopment Plan for the
CABA Redevelopment Project Area and Tax Increment Financing Plan
for the Tax Increment Economic Development District all relating
to the Cedar Avenue Business Area Redevelopment Project", dated
October 15, 1990, and on file with the HRA.
Section 2. HRA Approval.
2.01. The HRA finds that the objectives of the HRA in
encouraging development and redevelopment within the Project Area
will be advanced by adoption of the modified Redevelopment Plan
and TIF Plan.
2.02. The modified Redevelopment Plan and TIF Plan are
hereby approved and adopted by the HRA, subject to review by the
Richfield planning commission.
0
Section 3. Further Proceeding.
3.01. The executive director of the HRA is hereby
authorized and directed to transmit copies of the Redevelopment
Plan and TIF Plan modification to the school board of Independent
School District No. 280, Intermediate School District No. 287,
and the board of commissioners of Hennepin County for review and
comment and to notify said public bodies of the public hearing to
be held on the Plans by the City.
3.02. The HRA requests that the Richfield planning
commission review the Redevelopment Plan and TIF Plan
modification and comment regarding the consistency of the Plans
with the City's comprehensive plan.
3.03. The HRA requests the City to hold the public hearing
on the modified Plans required by Minn. Stat. Section 469.028 and
Minn. Stat. Section 469.175, Subd. 3, as soon hereafter as is
practicable and recommends that the modified Plans be approved by
the City.
3.04. The HRA also intends to request that the City from
time to time consider various other actions necessary to the
implementation of the Plans and pledges its cooperation with the
City in achieving the objectives of the Plans.
• Passed by the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota this 15th day of October, 1990.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
<CDAdmin>HRALTR-CABA
0
/. J
d'
0
The Housing and Redevelopment Authority
In and for
The City of Richfield, Minnesota
Modification No. 1
to the
Redevelopment Plan
for the
CABA Redevelopment Project Area
and
Tax Increment Financing Plan
for the
• Tax Increment Economic Development District
All Relating to the
The Cedar Avenue Business Area
Redevelopment Project
Dated; October 15, 1990
0
MAYOR
STEVEN J. QUAM
CITY COUNCIL
Edwina Garcia
Martin Kirsch
Ivan Ludeman
Michael Sandahl
HOUSING AND REDEVELOPMENT AUTHORITY
Thomas Harms, Chair
Edwina Garcia
Joan Helmberger
Ivan Ludeman
Vern Luettinger
0
CITY MANAGER/EXECUTIVE DIRECTOR
James D. Prosser
CITY STAFF
Byron Wallace
Community Development Director
John Dean
Holmes & Graven, Chartered
City Attorney
Ronald Batty
Holmes & Graven, Chartered
HRA Attorney
Bruce Palmborg
Housing & Redevelopment Coordinator
Kathy Jablonsky
Redevelopment Specialist
TABLE OF CONTENTS
Part 1.
Redevelopment Plan
Original
Plan
Page
A. Statement of Public Purpose. 6
B. Statutory Authority 6
C. Description of Redevelopment Project Area. 6
D. Statement of Goals and Objectives 7
E. Development Activities and Agreements 8
F. Proposed Land Use 10
G. Acquisition Relocation, and Rehabilitation
Activities 10
H. Environmental Considerations 11
0. Redevelopment Plan Modification. . 11
J. Administration of Redevelopment Project 12
Part If.
Tax Increment Financing Plan
A. Statutory Authority
B. Statement of Objectives.
C. Development Program. .
D. Description of Property in the
Tax Increment Financing District.
E. Classification of the Tax Increment
Financing District.
F. Parcels To Be Acquired
G. Estimate of Costs.
41* Estimated Amount of Obligated Funds..
Modification
No. 1 Plan
Page
13 ---
14 ---
14 ---
15 ---
. 15 ---
. 16 ---
16 ---
. 16 ---
(i)
Original Modification
.
Plan No. 1 Plan
Page Page
I. Sources of Revenue. 16 ---
J. Original Assessed Value. 17 ---
K. Estimated Captured Assessed Value. 18 ---
L. Duration of the District. 18 ---
M. Estimated Impact on Other Taxing
Jurisdictions 18 ---
N. Modifications of the Tax Increment
Financing District. 18 ---
0. Limitation on Administrative Expenses. 19 ---
P. Limitation on Duration of Tax Increment
Financing Districts. 19 ---
Q. Limitation on Qualification of Property
in Increment District Not Subject To
Improvement. 19 ---
R Li
i
i •
. m
tat
on of the Use of Tax Increment. 20 ---
S. Notification of Prior Planned Improvements. 20 ---
T. Excess Tax Increments. 21 ---
U. Assessment Agreements. 21 ---
V. Administration of the Tax Increment Financing
District and Maintenance of the Tax Increment
Account 22 ---
W. Annual Disclosure Requirements.. 22 ---
X. Assumptions. 22 ---
Y. Municipal Findings. 22 ---
Appendix A: Map 1: Redevelopment Pro j ect
Boundary and Area 26 ---
Appendix B: Map 2: Property in the Tax Increment
District Boundary and Area 28 ---
Appendix C. Estimate of Tax Increments 30 ---
00
Appendix D: uses of Tax Increment Revenue
Appendix D- 1: uses of Tax Increment Revenue
for Taxes Payable 1990
Appendix D-2: Uses of Tax Increment Revenue
for Taxes Payable 1991
Appendix D-2: uses of Tax Increment Revenue
for Taxes Payable 1992-1997
Appendix E. Estimate of Total Annual Taxes
Appendix F. Tax Increment Financing Budget
Appendix G: Estimate of Impacts on Other
Taxing Jurisdictions
Other:
Summary of Modification No. 1
•
•
Original
Plan
Page
33
34
35
36
Modification
No. 1 Plan
Page
D-1-1
D-2-1
D-3-1
1-1
(1111
SUMMARY FOR MODIFICATION NO. 1
• TO THE TAX INCREMENT FINANCING PLAN
On January 19, 1988, the Richfield Housing and Redevelopment
Authority authorized the Cedar Avenue Business Area (CABA)
Redevelopment Project and approved the Redevelopment Plan and Tax
Increment Financing Plan relating thereto. After a public
hearing on this matter on February 22, 1988, the City Council
approved the project and adopted the Redevelopment Plan and Tax
Increment Financing Plan.
Modification No. 1 to the CABA Redevelopment Plan and Tax
Increment Financing Plan is being undertaken to reflect two
changes since the original Plan approval.
The first amendment to the 1988 Plan involves the repayment of an
interim loan. As a means of providing an interim source of
funding for the project, the City borrowed the HRA funds from the
Cedar Liquor Fund. A portion of the outstanding loan balance was
repaid with land sale proceeds resulting from the sale of the
project parcel (Cedar Avenue Liquor Store parcel) to the
developer. Modification No. 1 reflects the repayment of the
outstanding balance of this loan. Repayment will occur in 1990
and 1991 with tax increment revenue generated from the district
during this tax period.
The second amendment to the 1988 Plan involves the City's
• voluntary payment of tax increment revenue to the School District
in 1990. This payment is based on the 1989/1990 tax capacity
rate applicable to the School District's voter approved 1988
special excess levy referendum.
The text which follows represents only the aforementioned
amendments. To understand the redevelopment project activities
originally proposed and the proposed modification, it is
encouraged that the original Plan, dated January 19, 1988, be
reviewed.
1-1
APPENDIX D-1
USES OF TAX INCREMENT REVENUE •
FOR TAXES PAYABLE 1990
BACKGROUND INFORMATION
Actual Actual
1990 Net 1990
Tax Capacity Tax Increment
Current Net Tax Capacity
for Taxes Payable 1990 $ 327,140 $ 336,836
Less:
Fiscal Disparity Contributionl $ 51,826 $ 53,362
Certified Base Value2 $ 18,489 $ 19,037
Net Tax Capacity Available $ 256,825 $ 264,437
DISTRIBUTION OF 1990 TAX INCREMENT REVENUE
Tax Increment $ Total
Developer3 $ 106,250 40.18%
4 •
Richfield HRA $ 0 0%
School District #2805 $ 13,612 5.15%
Taxing Jurisdictions:6
City of Richfield $ 14,254
Richfield HRA 352
Hennepin County 19,836
School Distr. #280 33,849
Vo-Tech. School 784
Water Shed #3 85
Miscellaneous 4,001
$ 73,161 27.66%
Cedar Avenue Liquor Fund? 71.414 27.01%
Total Tax Increment $ 264,437 100.00%
•
D-1-1
Footnotes to Appendix D-1•
• 1Fiscal disparity contribution for taxes payable 1990 equals
15.824$ of net tax capacity value.
2Base value as certified in 1988 and adjusted to commercial
property status from original exempt status.
3Annual payment of $106,250 to Developer as assisstance as
per original 1/19/88 Plan.
4Until the Cedar Avenue Liquor Fund is repaid, the HRA will
forego any reimbursement for administrative expenses from tax
increment revenue.
5Voluntary tax increment payment to the School District
based on a 5.3$ tax capacity rate for taxes payable 1990 in
accordance with the approved excess levy referendum of 1988.
6Voluntary distribution of tax increment to taxing
jurisdictions according to respective tax capacity rates for
taxes payable 1990. Distribution is discretionary and contingent
upon availability of increment.
70utstanding 1990 loan balance for interim project funds of
$84,898.11. Repayment to Cedar Avenue Liquor Fund in 1990 to be
$71,414.00.
0
D-1-2
APPENDIX D-2
USES OF TAX INCREMENT REVENUE
FOR TAXES PAYABLE 1991
BACKGROUND INFORMATION
Estimated
1991 Net
Tax Capacity
Estimated Net Tax Capacity1 $ 327,140
Less:
Fiscal Disparity Contribution2 $ 51,826
Certified Base Value3 $ 18,489
Net Tax Capacity Available $ 256,825
DISTRIBUTION OF 1991 TAX INCREMENT REVENUE
Tax Increment
Developer4 $ 106,250
Richfield HRA5 $ 9,362
School District #2806 $ 13,612
Taxing Jurisdictions? $ 73,161
Cedar Avenue Liquor Fund8 $ 13,484
TIF District No. 1252 Fund9 $ 48,568
Total Tax Increment $ 264,437
Estimated
1991
Tax Increment
$ 336,836
$ 53,362
$ 19,037
$ 264,437
$ Total
40.18$
3.54%-
5.15%
27.66%-
5.10%
18.37%
100.00%
r?
L
•
E
D-2-1
? a
Footnotes to Appendix D-2:
1Estimated net tax capacity is based on tax increment of
$264,437 for taxes payable 1990.
2Fiscal disparity contribution is based upon the level
payable for 1990 taxes, or 15.842% of net tax capacity.
3Base value as certified in 1988 and adjusted to commercial
property status from original exempt status.
4Annual payment of $106,250 to Developer as assisstance as
per original 1/19/88 Plan.
5Annual payment to the HRA for administrative expenses as
authorized in original 1/19/88 Plan.
6Voluntary tax increment payment to the School District
based on a 5.3% tax capacity rate for taxes payable 1990 in
accordance with the approved excess levy referendum of 1988.
7Voluntary distribution of tax increment to taxing
jurisdictions will be in accordance with respective tax capacity
rates for taxes payable 1991. Distribution is discretionary and
contingent upon availability of increment.
8The payment of $13,484 to the Cedar Avenue Liquor Fund
. represents a final payment. Interim project loan is deemed
satisfied.
9Revenues and expenditures pertaining to the CABA TIF
District will be handled through TIF District No. 1252 Fund.
D-2-2
APPENDIX D-3
USES OF TAX INCREMENT REVENUE
FOR TAXES PAYABLE 1992-1997
BACKGROUND INFORMATION
Estimated
1992-1997
(Represented as Annual Figures) Tax Capacity
Estimated Net Tax Capacity1 $ 327,140
Less:
Fiscal Disparity Contribution2 $ 51,826
Certified Base Value3 $ 18,489
Net Tax Capacity Available $ 256,825
DISTRIBUTION OF 1992-1997 TAX INCREMENT REVENUE
Tax Increment
Developer4 $ 106,250
Richfield HRA5 $ 9,362
School District #2806 $ 13,612
Taxing Jurisdictions? $ 73,161
TIF District No. 1252 Fund8 $ 62,052
Total Tax Increment $ 264,437
Estimated
1992-1997
Tax Increment
$ 336,836
$ 53,362
$ 19.037
$ 264,437
Total
40.18%
3.54$
5.15%
27.66%
23.47%
100.00%
171
•
E
D-3-1
s'
Footnotes to Appendix D-3:
1Estimated net tax capacity is based on tax increment of
$264,437 for taxes payable 1990.
2Fiscal disparity contribution is based upon the level
payable for 1990 taxes, or 15.842% of net tax capacity.
3Base value as certified in 1988 and adjusted to commercial
property status from original exempt status.
4Annual payment of $106,250 to Developer as assisstance as
per original 1/19/88 Plan. Total, assistance for the life of the
CABA TIF district of eight years will be $850,000.
5Annual payment to the HRA for administrative expenses as
authorized in original 1/19/88 Plan.
6Voluntary tax increment payment to the School District
based on a 5.3% tax capacity rate for taxes payable 1990 in
accordance with the approved excess levy referendum of 1988.
7Voluntary distribution of tax increment to taxing
jurisdictions will be in accordance with respective tax capacity
rates for taxes payable 1992-1997. Distribution is discretionary
and contingent upon availability of increment.
• 8Revenues and expenditures pertaining to the CABA TIF
District will be handled through TIF District No. 1252 Fund.
r
D-3-2