07-23-90 agendaoC.
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 176
Agenda, July 23, 1990
Issue Statement:
Presentation of McGruff Good Achievement Award to Brent Wolf.
Background:
On April 20, 1988, Brent .Wolf witnessed a sexual assault in
Veterans Park. Brent was walking on the paths when he heard some
screams and saw movement in the grass. Noticing .that a young
female was apparently being assaulted, he shouted at the
assailant which scared him off.
Brent then went and aided the victim to include escorting her
home.
Brent's quick action saved the victim from further harm.-
Recommended Motion:
Mayor and Public Safety Director present Brent Wolf with McGruff
Achievement Award.
Respectf ly submitted,
Jame Prosser
City anager
JDP:lmv
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 177
Agenda July 23, 1990
Issue Statement:
Consideration of a resolution proposing an amendment to the City
Charter regarding filing dates for municipal elective office.
Bachround
Minnesota Statute 205.13 Subdivision 1 states that "not more than
ten nor less than eight weeks, in the case of a City, before the
municipal primary, or before the municipal general election if
there is no municipal primary, an individual who is eligible and
desires to become a candidate for an office to be voted for at
the election shall file an affidavit of candidacy with the
municipal clerk."
This provision specifically overrides local charter provisions
regarding filing dates except that "the filing dates in this
subdivision do not apply to any home rule Charter City whose
charter provides for earlier filing dates."
It would be desirable to have City Charter Section 4.04 amended
as follows•
"The name of any registered voter of the city shall be printed
upon the ballot as a candidate for office whenever a petition
signed by at least ten registered voters has been filed with the
City Clerk in a candidates behalf Aet-mere-tkaA-elg~it-xe~-less
tHax-s#x-Weeks-be€ewe-tY~e-mxAle#gal-p~#mary-eleetler~-date
grevldeet-l.x-SeetieA-4-8g:=' within the time period provided by
State Iaw for such .filings.
This would assure that the City's filing dates will stay
consistent with State Statute. The City Charter was amended to
be consistent with an existing Statute in June, 1987. However,
•in August, 1987 the statute again was changed by the legislature.
~In order to remain the same as State Statute without constantly
amending the Charter, it would be preferable to reference the
Statute regarding filing dates.
Recommended Motion:
Adopt the attached resolution referring the proposed amendment to
the City Charter regarding the filing dates for municipal
elective office to the Charter Commission for review and
recommendation.
Basis for Recommendation:
1. The filing period in the Richfield City Charter is
inconsistent with the filing period provided by state law.
2. State law specifically overrides the local charter
provision.
3. State law has regarding filing dates has been amended
several times recently, therefore, it is desirable to
reference the statute to remain consistent with the most
recent statutes.
Alternative Recommendation:
__ _ _ ---
1. The City Council could decide not to refer the proposed
Charter. amendment to the Charter Commission for review and
allow the Charter to remain unchanged.
2. The City Council could propose alternative filing dates
earlier than those stated in the statutes.
Discussion/Decision Mode:
This matter has been scheduled for consideration on July 23,
1990. Action is requested to allow for Charter Commission review
and City Council consideration of the proposed amendment.
Respe ully submitted,
Jame Prosser
City nager
SA-~
RESOLUTION NO.
A RESOLUTION PROPOSING AN AMENDMENT
TO THE CITY CHARTER
WHEREAS, the Richfield City Code provides in Section 4.04
for the filing of nomination petitions for municipal elective
offices not more than eight nor less than six weeks before the
municipal primary election; and
WHEREAS, Section 205..13, subd. 1 of Minnesota Statutes
provides. for the filing of affidavits of candidacy .for municipal
offices not more than ten nor less than eight weeks before the
municipal primary; and
WHEREAS, the filing period in the Richfield Code is
inconsistent with the filing period provided for by state law;
and
WHEREAS, statute overrides local charter provisions
regarding filing dates except when a home rule charter city
provides for earlier filing dates;
WHEREAS, the Richfield City Council finds that it is in the
interest of the City to conduct its elections in conjunction with
county, state, and federal elections and be consistent with the
Minnesota State Election Laws;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield as follows:
1. That the following proposed amendment to the City
Charter be referred to the Charter Commission for review and
recommendation:
Section x.04 Nominations by Petition. All candidates for
elective office provided for by this charter shall be nominated
'by petition.. The name of any registered voter of the City shall
be printed upon the ballot as a candidate for an office whenever
a petition signed by at least ten registered voters has been
filed with the City Clerk in a candidates behalf aet-mere-~Hax
e#g~it-Ae~-less-~I~aA-s#x-Weeks-be€e~e-tl~e-msA#e#ga#-g~#xta~Y
elee~#eA-elate-g~ev#ded-#A-Seed#eA-4:8~: within the time period
provided by State law for such filings No registered voter
shall sign petitions for more candidates for any office than the
number of persons to be chosen for that office at the election;
should a signer do so, .the signer's signature shall be void as to
the petition or petitions last filed. Each petition presented
shall be accompanied by a five dollar ($5.00) filing fee.
2. That if the Charter Commission recommends approval of
the proposed amendment, the Council requests that the Charter
Commission further recommend that the Council enact the proposed
Charter amendment by ordinance.
~ ~ ~ ~
PASSED by the City Council of the City of Richfield,
Minnesota this 23rd day of July, 1990.
ATTEST:
Steven J. Quam Mayor
Thomas P. Ferber City Clerk
sa
CITY OF RICHFIELD, MINNESOTA
Council Letter No. x'78
Agenda July 23, 1990
Issue_Statemen__t
Authorization to execute a point cooperation agreement with
Hennepin County to continue participation in the Community
Development Block Grant program (CDBG).
Bac ground
The Joint Cooperation Agreement which the .City executed in 1987
with Hennepin County and 43 other communities to continue the
Urban Hennepin County CDBG program expires on October 1, 1990.
To continue the program, it is necessary to execute a new
agreement for the next three years.
The agreement is for the federal fiscal years 1991, 1992. and
1993. The agreement is necessary for the County to qualify as an
urban County and participate in the program. An agreement is
also necessary to allow Richfield to continue to receive
approximately $160,000 a year from this program. If the City
Council elects not to execute this agreement, Richfield cannot
participate in the program for the next three years.
The agreement is similar to the one previously executed in 1987.
The new agreement incorporates the amendments that were appended
to the last agreement. Also included are several changes to
accommodate new requirements directed by HUD, such as emphasizing-
affirmative action to further fair housing and clarifying the
relationship between cooperating communities and the County as
subrecipient and recipient.
Of most significance is the elimination of the discretionary
account. The unexpended funds which made up the account will now
be added to the annual basic grant and programmed for use along
with the development of the annual program. This change reflects
the general improvement in expenditure rate and simplifies
program administration.
Recommended Motion:
Adopt the resolution authorizing the Mayor and City Manager to
execute the Joint Cooperation Agreement with Hennepin County to
continue participation in the CDBG Program.
Basis of Recommendation:
This is a valuable program to the City of Richfield as it
provides annual funding for:
1. New Home Program
2. Deferred Rehabilitation Loans
3. .Sliding Fee Day Care
s~-~
4. H.O.M.E.
Alternative Recommendation:
Not execute the agreement which would result. in the loss of CDBG
funds for the next three years.-
Discussion/Decision Mode:
A decision on this matter is necessary at the July 23, 1990
Council meeting to permit processing and submission by August 11,
1990. County staff has indicated that if the executed agreement
is not received by August 17, 1990, the City of Richfield cannot
continue to participate in the program after the expiration of
the current agreement on October 1.
Respectf ly submitted,
James Prosser
City ager
JDP:ds
5~3-Z
RESOLUTION NO.
RESOLUTION. AUTHORIZING EXECUTION OF A
JOINT COOPERATION AGREEMENT WITH
HENNEPIN COUNTY TO CONTINUE PARTICIPATION
IN THE URBAN HENNEPIN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
WHEREAS, the City of Richfield, Minnesota and the County of
Hennepin have in effect a Joint Cooperation Agreement, County
Contract No. 70489, for the purposes of qualifying as an Urban
County under the United States Department of Housing and Urban
Development Community Development Block Grant program; and
WHEREAS,. the City and the County wish to terminate the
current Agreement and execute a new Joint Cooperation Agreement,
County Contract No. A05020, to reconstitute Urban Hennepin County
for purposes. of the Community Development Block Grant program;
and
WHEREAS, the City wishes to defer its status as a
Metropolitan City and remain a participant in the Urban Hennepin
County Community Development Block Grant program.
BE IT RESOLVED, that the current Joint Cooperation Agreement
between the City and the County, county Contract No. 70489, be
terminated effective September 30, 1990; and
BE IT FURTHER RESOLVED, that the City defer its status as a
Metropolitan City for the purposes of participating in the Urban
Hennepin County community Development Block Grant program; and
BE IT LASTLY RESOLVED, that the Mayor and City Manager be
authorized and directed to execute the new Joint Cooperation
Agreement between the City and the County, County Contract No.
A05020, to be effective October 1, 1990.
Passed by the City Council of the City of Richfield this
:23rd day of July, 1990.
ATTEST:
Steven J. Quam, Mayor
Thomas Ferber, City Clerk
S t3-3
Contract No. ~C~,~~~; Q
JOINT COOPERATION AGREEMENT
THIS AGREEMENT made and entered into by and between the COUNTY OF
HENNEPIN, Sta~e of Minnesota, hereinafter referred to as "COUNTY," and the
CITY OF _ IClI ~~~ hereinafter referred to as "COOPERATING
UNIT," said parties to this Agreement each being governmental units of the
State of Minnesota, and is made pursuant to Minnesota Statutes, Section
471.59;
YITNESSETH;
COOPERATING UNIT and COUNTY agree that it is desirable and in the
interests of their citizens that COUNTY secure Community Development Block
Grant funds as ari Urban County within the provisions of the Act as herein
defined and, therefore,. in consideration of the mutual covenants and promises
contained in this Agreement, the parties mutually agree to the following terms
and conditions.
I. DEFINITIONS
The definitions. contained in 42 USC 5302 of the Act and 24 CFR Part 570.3
of the Regulations are incorporated herein by reference and made a part
hereof, and the terms defined in this section have the meanings given them:
A. "Act" means Title I of the Housing and Community Development Act of
1974 as amended (42 U.S.C. 5301 et.sea.).
B. "Regulations" means the rules and regulations promulgated pursuant
to the Act, including but not limited to 24 CFR Part 570.
C. "HUD" means the United States Department of Housing and Urban
Development.
D. "Cooperating Unit" means any city or town in Hennepin County which
has entered into a cooperation agreement which is identical to this
Agreement, as well as Hennepin County. which is a party to each
Agreement.
E. "Statement of Objectives and Projected Use of Funds" means the
document bearing that title or similarly required statements or
documents submitted to HUD for authorization to expend the annual
grant amount and which is developed by the COUNTY in conjunction
with COOPERATING UNITS as part of the Community Development Block
Grant program.
F. "Metropolitan City" means any city located in whole or in part in
Hennepin County which is certified by HUD to have a population of
50,000 or more people.
-~-y
II. URPOSE
The purpose of this Agreement is to authorize COUNTY and COOPERATING UNIT
to cooperate to undertake, or assist in undertaking, community renewal and
lower income housing activities, specifically urban renewal and publicly
assisted housing and authorizes COUNTY to carry out these and other eligible
activities for the benefit of eligible recipients who reside within the
corporate limits of the COOPERATING UNIT which will be funded from annual
Community Development Block Grants from Fiscal Years 1991, 1992 and 1993.
III. AGREEMENT
A. The term of this Agreement is for a period commencing on the
effective date of October 1, 1990, terminating no sooner than the
end of the program year covered by the Statement of Objectives and
Projected Use of Funds for the hasic grant amount for the Fiscal
Year 1993 as authorized by HUD subsequent to the effective date and
for such additional time as may be required for the expenditure of
funds granted to the County for such period.
B. Notwithstanding any other provision of this Agreement, this Agree-
ment shall be terminated at the end of the three-year program period
during which HUD withdraws its designation of COUNTY as an Urban
County under the Act.
C. .This Agreement shall be executed by the appropriate officers of
~_' COOPERATING UNIT and COUNTY pursuant to authority granted them by
their respective governing bodies, and a copy of the authorizing
resolution and executed Agreement shall be filed promptly by the
COOPERATING UNIT in the Hennepin County Office of Planning and
Development, and in no event shall the Agreement be filed later than
August 17, 1990.
D. COOPERATING UNIT and COUNTY shall take all actions necessary to
assure compliance with the urban county's certification required by
Section~~104(b) of the Title I of the Housing and Community Develop-
ment. Act of 1974, as amended, including Title VI of the Civil Rights
Act of 1964, the Fair Housing Act, Title VIII of the Civil Rights
Act of 1968, Section 109 of Title I of the Housing and Community
Development Act of 1974, and other applicable laws.
IV. ACTIVITIES
COOPERATING UNIT agrees that awarded grant funds will be used to under-
take and carry out within the terms of this Agreement certain projects
involving one or more of the essential activities .eligible for funding under
the Act. COUNTY agrees and will assist COOPERATING UNIT in the undertaking of
such essential activities by providing the services specified in this Agree-
ment. The parties mutually agree to comply with all applicable requirements
of the Act and the Regulations and other relevant Federal and/or Minnesota
statutes or regulations in the use of basic grant amounts. Nothing in this
Article shall be construed to lessen or abrogate COUNTY's responsibility to
assume all obligations of an applicant under the Act, including the develop-
ment of the Statement of Objectives and Projected Use of Funds pursuant to 24
CFR 570.300 et.seq,,
2
J 1~
A. COOPERATING UNIT further specifically agrees as follows:
1. COOPERATING UNIT will in accord with a COUNTY established
schedule prepare and provide to COUNTY, in a prescribed form,
an annual request for the use of Community Development Block
Grant Funds consistent with this Agreement, program regulations
and the Urban Hennepin County Statement of Objectives.
2. COOPERATING UNIT acknowledges that, pursuant to 24 CFR 570.501
(b), it is subject to the same requirements applicable to
subrecipients, including the requirement for a written Sub-
recipient Agreement set forth in 24 CFR 570.503. The Sub-
recipient Agreement will cover the implementation requirements
for each activity funded pursuant to this Agreement and shall
be duly executed with and in a form prescribed by COUNTY.
3. COOPERATING UNIT acknowledges that it is subject to the Same
subrecipient requirements stated in 2. above in instances where
an agency other than itself is undertaking an activity pursuant
to this Agreement on behalf of COOPERATING UNIT. In such
instances a written Third Party Agreement shall be duly
executed between the agency and COOPERATING UNIT in s form
prescribed by COUNTY.
4. COOPERATING UNIT shall implement all activities funded for each
annual program pursuant to this Agreement within eighteen (18)
~:
months of the authorization by HUD to expend the basic grant
amount.
(a) Funds for all activities not implemented within eighteen
(18) months shall be added to the next annual basic grant
amount received by COUNTY and allocated according to the
•' procedures set forth in and comply with all conditions of
this Agreement.
(b) Implementation period extensions may be granted upon
request in cases where the authorized activity has been
initiated and/or subject of a binding contract to proceed.
5. COOPERATING UNIT shall use funds provided pursuant to Section
V, of this Agreement to undertake no more than. three (3) grant
funded activities administered by the COOPERATING UNIT. Each
activity shall have a budget of at least seventy-five hundred
dollars ($7,500), or the total amount of the planning alloca-
tion of COOPERATING UNIT if less than seventy-five hundred
dollars ($7,500). A COOPERATING UNIT may assign less than
seventy-five hundred dollars ($7,500) to an activity when the
activity is one that is pzogrammed by at least one other
COOPERATING UNIT and administered by only one COOPERATING UNIT
on behalf of the others, provided that the .total activity
budget is at least seventy-five hundred dollars ($7,500),
3
5 ~~- ~
6. COOPERATING UNIT will take. actions necessary to accomplish the
community development program and housing assistance goals as
contained in the Urban Hennepin County Housing Assistance Plan.
7. COOPERATING UNIT shall ensure that all programs and/or activi-
ties funded in part or in full by grant funds received pursuant
to this Agreement shall be undertaken affirmatively with regard
to fair housing, employment and business opportunities for
minorities and women. It shall in implementing all programs
and/or activities funded by the basic grant amount comply with
all applicable Federal and Minnesota Laws, statutes, rules and
regulations with regard to civil rights, affirmative action and
equal employment opportunities and Administrative Rule issued
by the COUNTY.
8. COOPERATING UNIT that does not affirmatively further fair
housing within its own ,jurisdiction or that impedes action by
COUNTY to comply with its fair housing certification shall be
prohibited from receiving CDBG funding for activities.
9. COOPERATING UNIT shall participate in the citizen participation
process as established by COUNTY in compliance with the
requirements of the Housing and Community Development Act of
1974, as amended.
10. COOPERATING UNIT shall comply with all of the administrative
guidelines of the COUNTY now in effect or as hereafter promul-
gated.
11. COOPERATING UNIT shall prepare, execute, and cause to be filed
all documents protecting the interests of the parties hereto or
any other party of interest as may be designated by the COUNTY.
B. .COUNTY further specifically agrees as follows:
1. COUNTY shall prepare and submit to HUD and appropriate review-
ing agencies on an annual basis all plans, statements and
program documents necessary for receipt of a basic grant amount
under the Act.
2. COUNTY shall provide, to the maximum extent feasible, technical
assistance and coordinating services to COOPERATING UNIT in the
preparation and submission of the request for funding.
3. COUNTY shall provide ongoing technical assistance to 000PERAT-
ING UNIT to 'aid COUNTY in fulfilling its responsibility to HUD
for accomplishment of the community development program and
housing assistance goals.
4. COUNTY shall upon official request by COOPERATING UNIT agree to
administer local housing rehabilitation grant programs funded
pursuant to the Agreement, provided that COUNTY shall receive
twelve percent (128) of the allocation by COOPERATING UNIT to
the activity as reimbursement for costs associated with the
administration of COOPERATING UNIT activity.
4
5 b-~
,5. COUNTY may, as necessary for clarification and coordination of
program administration, develop and implement Administrative
Rules consistent with the Act, Regulations and HUD administra-
tive directives.
V. ALLOCATION OF BASIC GRANT AMOUNTS
Basic grant amounts received by the COUNTY under the Act shall be
allocated as follows:
A. COUNTY shall retain ten percent (108) of the annual ,basic grant
amount for the undertaking of eligible activities.
B. The balance of the basic grant amount shall be apportioned by COUNTY
to COOPERATING UNITS in accordance with the formula stated in part C
of this section for the purpose of allowing the COOPERATING UNITS to
make requests for the use of funds so apportioned. The allocation
is for planning. purposes only and is not a guarantee of funding.
C. Each COOPERATING UNIT will use as a target for planning purposes an
amount which bears the same ratio to the balance of the basic grant
amount as the average of the ratios between:
1. The population of COOPERATING UNIT and the population of all
COOPERATING UNITS.
2. The extent of poverty in COOPERATING UNIT and the extent of
poverty in all COOPERATING UNITS.
3. The extent of overcrowded housing by units in COOPERATING UNIT
and the extent of overcrowded housing by units in all 000PERAT-
ING UNITS.
4. In determining the average of the above ratios, the ratio
involving the extent of poverty shall be counted twice.
D. It is the intent of this section that said planning allocation
utilize the same basic elements for allocation of funds as are set
forth in 24 CFR 570.4. The COUNTY shall develop these ratios based
upon data to be furnished by HUD. The COUNTY assumes no duty to
gather such data independently and assumes no liability for any
errors in the data furnished by HUD.
E. In the event COOPERATING UNIT does not request its planning alloca-
tion, or a portion thereof, the amount not requested shall be added
to the next annual basic grant amount received by COUNTY and
allocated according to the procedures set forth in and comply with
all conditions of this Agreement.
VI. FINANCIAL MATTERS
A. Reimbursement to the COOPERATING UNIT for expenditures for the
implementation of activities funded under the Act shall be made
upon receipt by the COUNTY of Summary of Project Disbursement form
and Hennepin County Warrant Request, and supporting documentation.
5
S~3-B
B. All funds received by COUNTY under the Act as reimbursement for
payment to COOPERATING UNITS-for expenditure of local funds for
activities funded under the Act shall be deposited in the County
Treasury.
C. COOPERATING UNIT and COUNTY shall maintain financial and other
records and accounts in accordance with requirements of the Act and
Regulations. Such records and accounts will be in such form as to
permit reports required of the County to be prepared therefrom and
to permit the tracing of grant funds and program income to final
expenditure.
D. COOPERATING UNIT and COUNTY agree to make available all records and
accounts with respect to matters covered by this Agreement at all
reasonable times to their respective personnel and duly authorized
federal officials. Such records shall be retained as provided by
law, but in no event for a period of less than three years from the
last receipt of program income resulting from activity implementa-
tion. COOPERATING UNIT and COUNTY shall perform all audits as may
be required of the 'basic grant amount and resulting program income
as required under the Act and Regulations.
E. COOPERATING UNIT shall inform COUNTY of any income generated by the
expenditure of CDBG funds it has received and shall pay to COUNTY
all program income generated except as derived from activities with
an approved revolving account. When program income is generated by
an activity Lhat is only partially assisted with CDBG funds, the
income shall be prorated to reflect the percentage of CDBG funds
used.
1. COUNTY will retain ten percent (108) of all program income paid
to COUNTY to defray administration expenses.
2. The remaining ninety percent (908) of the program income paid
to COUNTY shall be credited to the grant authority of 000PERAT-
ING UNIT whose project generated the program income and shall
be used for fundable and eligible CDBG activities consistent
with this Agreement.
3. COOPERATING UNIT is authorized to retain program income derived
from projects with an approved revolving account provided such
income is used only for eligible activities in accordance with
all CDBG requirements as they may apply.
4. COOPERATING UNIT shall maintain appropriate records and make
reports to COUNTY as may be needed to enable COUNTY to monitor
and report to HUD on the use of any program income.
5. Any program income that is on hand or received subsequent to
.the closeout or change in status of COOPERATING UNIT shall be
paid to COUNTY.
b
5 B-9
F. Should an approved activity be determined to represent an ineligible
expenditure of grant funds, the COOPERATING UNIT responsible shall
reimburse the COUNTY for such ineligible expense.
1. All reimbursements for ineligible expenditures shall be added
to the next annual basic grant amount received by COUNTY and
allocated according to the procedures set forth in and comply
with all conditions of this Agreement unless decreed otherwise
by a Federal regulatory body or by final determination of a
court of competent jurisdiction.
2. When it is determined by the COUNTY that grant. funds have been
expended on an eligible activity and through no fault of the
COOPERATING UNIT the project fails or is no longer eligible,
the return of grant funds shall be reallocated in the same
manner as program income in Section VI.E. of this Agreement
unless decreed otherwise by a Federal regulatory body or by
final determination of a court of competent jurisdiction.
VII. REAL PROPERTY ACQUISITION OR IMPROVEMENT
The following provisions shall apply to real property acquired or
improved in whole or in part using CDBG funds.
A. COOPERATING UNIT shall promptly notify COUNTY of any modification or
change in the use of real property from that planned at the time of
acquisition or improvement including disposition and comply with
24 CFR 570.505.
B. COOPERATING UNIT shall reimburse COUNTY the greater of the actual
sale proceeds or an amount equal to the current fair market value
(less any portion thereof attributable to expenditures of non-CDBG
funds) of property acquired or improved with CDBG funds that is sold
or transferred for a use which does not qualify under the CDBG
regulations.
C. Program income generated from the disposition or tzansfer of
property prior to or subsequent to the closeout, change of status or
termination of this Agreement shall be treated as stipulated in
Section VI, paragraph E of this Agreement.
VIII. METROPOLITAN CITIES
Any metropolitan city executing this Agreement shall defer their entitle-
ment status and become part of Urban Hennepin County.
7
sg- ~ o
IX. EXECUTION
COOPERATING UNIT, having signed this Agreement, and the Hennepin County
Board of Commissioners having duly approved this Agreement on
_ , 19 and pursuant to such approval and the proper County official
having signed this Agreement, the parties hereto agree to be bound by the
provisions herein set forth.
Upon Proper execution, this COUNTY OF HENNEPIN, STATE OF MINNESOTA
Agreement will be legally
valid and binding. gy;
~ Chairman of its County Board
__ _
-' ~ „ nd:
'~~ ~~~ / ~ Deputy/Associate County Administrator
•'Assistant County Attorney _
~ ~~? Attest:
Date: ~ ~'~ -" ~" Deputy County Auditor
APPROVED AS TO EXECUTION: CITY OF
By:
Assistant County Attorney Its
Date: And:
Its
CITY MUST CHECK ONE:
The City is organized pursuant to:
_ Plan A _ Plan B _ Charter
8
5C
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 1.79
Agenda July 23, 1990
Issue Statement:
Purchase in excess of $5,000 for tee signs at Rich Acres Golf
Course.
Bachround
The City Council policy resolution on purchasing provides that
when the purchase of merchandise, materials, equipment or
construction exceeds the amount of 55,000, authority to purchase
shall be submitted to the City Council for consideration.
A variety of tee signs .were investigated by staff. Materials
ranged from redwood to cedar to rosewood granite. Because of the
difference in materials and displays on the signs themselves,
price comparisons are not on an equal basis. The Community
Services Commission reviewed the tee signs and felt the rosewood
granite signs would: be a good addition to the course and
recommended they be purchased.
Quotations for 18 tee signs were received from four companies:
Vendor note
Teemaster $10,800
Cyclex Granite 511,844
Pro Line Goif Corp. 512,510
Golf Graphics 513,500
The tee signs quoted by Pro Line Golf Corporation at a unit price
of 5695 are 12" x 30" rosewood granite in 6" x 12" cedar beam and
include a 10" x 12" sponsor plaque. Sponsorships are presently
being solicited with ten sponsors currently committed for
payment. These signs are of the same high quality that is used
at the Tournament Players Clubs (TPC) courses, meeting
Professional Golf Association standards, around the country.
Recommended Motion:
Approve the purchase of tee signs produced by Pro Line Golf
Corporation in the amount of 512,510 plus shipping.
Basis of Recommendation:
1. The present signs are ten years old and in disrepair.
2. The Pro Line tee signs are of the same high quality used at
TPC courses around the country.
3. Sponsorships are being sold to defer the cost of the tee
signs.
4. There are sufficient funds in the Golf Course Fund to cover
the initial purchase expense prior to sponsorship.
5C-~
Alternative Recommendation:
1. The Council could choose to continue with the existing tee
signs although. they are in disrepair and need replacing.
2. The Council could select another vendor. However, the
quality of other signs does not meet the standards of the
Rich Acres Golf Course or the City of Richfield.
3. The Council could direct staff to look for alternatives,
but staff has spent considerable time in research and feels
this is the best choice for current and future needs.
Discussion,Decision Mode:
This item is scheduled for the July 23, 1990 regular City Council
meeting. Staff is asking for approval at this time in order to
have the design work started on the tee signs.
Respec ly submitted,
James Prosser
City M ager
JDP/cjk
SD
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 180
Agenda July 23, 1990
Issue Statement:
Purchase in excess of $5,000 for base and .blacktop at Veterans
Memorial Park of Richfield.
' Backctround:
The City Council policy resolution on purchasing provides that
when the purchase of merchandise, materials, equipment or
construction exceeds the amount of $5,000, authority to purchase
shall be submitted to the City Council for consideration.
The Veterans Memorial Park of Richfield Park improvement budget,
which includes the picnic area and play feature, contains monies
to construct paths connecting the park shelter, parking lot,
playfeature, floating boardwalk, drinking fountain and satellite
lavatories to the existing bike/hike paths at Veterans Memorial
Park of Richfield.
Staff received three quotations as follows for base and
blacktopping to be used on those connecting paths:
Vendor Unit Price Estimated Total
Bituminous Roadways, Inc. $16.67/Sq. Yd. $20,004
Barber Construction Co., Inc. $15.19/Sq. Yd. $18,228
Plehal Blacktopping, Inc. $ 7.25/Sq. Yd. S 8,?00
Recommended Motion:
Approve a purchase order in the sum of $8,700 to Plehal _
Blacktopping, Inc. for the paths at Veterans Memorial- Park of
Richfield.
'Basis of Recommendation:
1. The project is needed to provide access to the play feature
and other amenities at Veterans Memorial Park of Richfield.
2. Plehal Blacktopping, Inc. submitted the low quotation for the
work.
3. There is funding for this work under the same budget that
funded the new play feature.
Alternative Recommendation:
Council could choose to delay the project; however, the funding
is available for the 1990 construction season and the facilities
to be connected by the path have been constructed.
J ~.= - I
Discussion/Decision Mode:
Staff is requesting approval at this time in order to facilitate
timely installation of the blacktopping while the. weather is
amenable to this type of construction.
Respectfu ly submitted,
James, Prosser
City l~fanager
JDP/reb
b
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 181
Agenda July 23, 1990
Issue Statement:
Public hearing to consider specially assessing the
Lyndale/HUB/Nicollet (LHN) area for current maintenance services
for the period of January 1 through December 31, 1991 - City
Project No. 862.
Background:
The City Council has scheduled a public hearing for July 23, 1990
to consider the establishment of a special assessment district
for current maintenance service costs in the LHN redevelopment
area. Notice of this public hearing was mailed~to all owners of
commercial property in the area and published in the official
newspaper as required by law.
The higher level of maintenance proposed to be provided in the
area includes the trimming and watering of trees and plants,
operation of a special street lighting system, removal of snow
and ice from sidewalks and performance of other specialized
maintenance functions.
The estimated maintenance cost for the period January 1 through
December 31, 1991 is 545,374. All commercial properties would be
assessed on the basis of area, with each square foot of
assessable property to be assessed equally, for the costs
incurred in the maintenance of common areas such as street
islands, the civic plaza and sidewalks. There is an agreement
between the City and the businesses that the business shall
maintain the property behind the curb. In the event the City
must perform this maintenance, the particular business is
assessed for the cost of the special, individual maintenance of
direct benefit to the given property.
For comparison purposes, the following is provided related to the
'LHN maintenance special assessments for current services:
Year Estimated Actual
1985 535,726.00
1986 552,900 540,110.00
1987 549,936 $45,694.16
1988 $50,142 544,405.24
1989 540,614 $43,151.19
1990 541,570
1991 $45,374
Recommended Motion:
Following the close of the public hearing, adopt the resolution
ordering the LHN maintenance work for the period January 1, 1991
through December 31, 1991 (City Project No. 862) to be done and
the costs to be specially assessed.
Basis of Recommendation:
1. Notice of proposed assessment has been published in the
official newspaper.
2. Each affected property owner has been notified of the
proposed assessment.
3. Continued maintenance service for this commercial area is
recommended in order to sustain the current standards for
landscaping and maintenance which have been successful over
the past years.
Alternative Recommendation:
None.
Discussion/Decision Mode:
A public hearing has been scheduled for the July 23, 1990 City
Council meeting.
Respectful submitted,
James D rosser
City Ma er
Attachment
JDPjreb
b-L
RESOLUTION N0.
RESOLUTION ORDERING UNDERTAKING OF CURRENT SERVICE PROJECT
LYNDALE/HUB/NICOLLET (LHN) MAINTENANCE
JANUARY 1 THROUGH DECEMBER 31, 1991
CITY PROJECT NO. $62
WHEREAS, pursuant to ordinance, the City Council of the City
of Richfield did establish a special assessment district and did
propose that certain current services be undertaken by the City
in the Lyndale/HUB/Nicollet (LHN) Redevelopment Area
approximately bounded by 64th .Street, First Avenue, 67th Street
and Emerson Avenue and that the cost of such services be
specially assessed against benefited property, and
WHEREAS, the City Council of the City of Richfield did also
by such resolution set the date of public hearing on the
undertaking of such current service project and the levying of
special assessment to bear the cost thereof, and
WHEREAS, following due notice, such public hearing was held
on July 23, 1990 at which time all interested parties desiring to
be heard were given an opportunity to be heard.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield, Minnesota, as follows:
1. That the following examples of current services of the
City shall be undertaken by the City within the LHN Redevelopment
Project Area,. which area constitutes the special assessment
district with.the exception of single family, two family and
multifamily residential properties, with the cost of such
services to be specially assessed against the benefited property
within the district:
a. Snow, ice or rubbish removal;
b. .Weed elimination;
c. Elimination or removal of public health or safety
hazards from private property, excluding and structure
included under the provisions of Minnesota Statutes
Section 463.15 to 463.26;
d. Installation and repair of water service .lines;
e. Street sprinkling or other dust treatment of streets;
f. Trimming and care of trees and the removal of unsound
trees;
~D - :>
g. Repair of sidewalks, crosswalks and other pedestrian
walkways;
h. Operation of the street lighting system;
i. Maintenance of landscaped areas and other public
amenities on or adjacent to street right-of-way;
j. Maintenance of civic plaza;
k. Snow removal and other maintenance of streets;
1. Painting and repair of wood furniture; and
m. General maintenance, including repairs and replacement.
2. The work to be .performed may be by day labor, by City
force, by contract or by any combination thereof.
3. The designated period of the project shall be from
January 1 through December 31, 1991. Costs of the project shall
be collected in the manner provided in the. Richfield Ordinance
Code.
Passed by the City Council of the City of Richfield, Minnesota,
this 23rd day of July, 1990.
Steven J. Quam Mayor
ATTEST:
Thomas P. Ferber City Clerk
CITY OF RICHFIELD, .MINNESOTA
Council Letter No. 182
Agenda July 23, 1990
Issue Statemen_t_:
Public hearing to consider specially assessing the
Interstate/Lyndale/Nicollet (ILN) area for current maintenance
services for the period of January 1 through December 31, 1991 -
City Project No. 863.
Bachround
The City Council has scheduled a public hearing for July 23, 1990
to consider the establishment of a special assessment district
for current maintenance service costs in the ILN redevelopment
area, that area approximately bounded by Lyndale Avenue, the
railroad tracks, 77th Street and 78th Street including that
property known as Hennepin County Property Identification Number
34-028-24-33-0073. Notice of this public hearing was mailed to
all owners of multiple residential and commercial property in the
area and published in the official newspaper as required by law.
The higher level of maintenance proposed to be provided in the
area includes landscape maintenance of common properties through
tree trimming, mowing, fertilizing and edging; irrigation,
maintenance.; painting and repair of wood furniture; trash removal
and general maintenance through repair and replacement of lights,
sidewalks, curbs, furniture and plantings; and performance of
other specialized maintenance functions. These items are extra
services provided directly to the ILN project area and do not
include services provided to the entire City.
The estimated maintenance cost for the period January 1 through
December 31, 1991 is $7,475. All multiple residential and
commercial properties would be assessed on the basis of area,
with each square foot of assessable property to be assessed
equally, for the costs incurred in the maintenance of common
areas.
For comparison purposes, the following is provided related to ILN
maintenance special assessment for current services:
1988 Actual 57,001.47
1989 Estimated 57,254
1989 Actual 56,135.54
1990 Estimated $7,514
1991. Estimated $7,475
Recommended Motion:
Following the close of public hearing, adopt the resolution
ordering the ILN maintenance work for the period January 1
through December 31, 1991 (City Project No. 863) to be done and
the costs to be specially assessed.
~- ~
Basis of Recommendation:
1. Notice of proposed assessment has been published in the
official-newspaper.
2. Each affected property owner has been notified of the
proposed assessment.
3. Continued maintenance service for this area is recommended in
order to sustain the current standards for landscaping and
maintenance which have been successful over the past years in
another redevelopment area.
Alternative Recommendation:
1. Council may choose to establish a set rate and limit the
maintenance performed to that dollar amount. However, due to
variables such as weather and accidents, staff believes the
redevelopment area could suffer if maintenance were to be
limited.
2. Council may choose to have individual property owners perform
maintenance of the common areas. This may, however, involve
the City to a great extent to work out the details of the
maintenance program. The special assessment as proposed does
provide the coordination which may not be available through
.this possible alternative.
Discussion/Decision Mode:
A public hearing has been scheduled for the July 23, 1990 City
Council meeting.
Respectfully submitted,
James Prosser
City Manager
Attachment
JDP/reb
~ Z
RESOLUTION N0.
RESOLUTION ORDERING THE UNDERTAKING OF CURRENT SERVICE PROJECT
FOR INTERSTATE/LYNDALE/NICOLLET (ILN) MAINTENANCE
JANUARY 1, 1991 THROUGH DECEMBER 31, 1991
CITY PROJECT NO. 863
WHEREAS, pursuant to ordinance, the City Council of the City
of Richfield did establish a special assessment district and did
propose that certain current services be undertaken by the City
in the Interstate/Lyndale/Nicollet (ILN) Redevelopment Area, the
boundaries of which approximate Lyndale Avenue, 78th Street, the
railroad tracks and 77th Street including the property known as
Hennepin County Property Identification Number 34-028-24-33-0073,
and that the cost of such services be specially assessed against
benefited property, and
WHEREAS, the owner of each multiple residential and
commercial property within the area proposed to be assessed for
the service described in said resolution was mailed a copy of the
required notice, and
WHEREAS, ten days mailed notice of the hearing and one
publication of the required notice .was given at least two weeks
in advance as required by law, and
.WHEREAS, the public hearing was held on July 23, 1990 at
which. time all interested parties desiring to be heard were given
an opportunity to be heard.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield, Minnesota, as follows:
1. That the following examples of current services of the
City shall be undertaken by the City within the ILN district,
which area constitutes the special assessment district, with the
cost of such services to be specially assessed against benefited
multiple residential and commercial property within the district:
Landscape maintenance of common properties; including, but
not limited to, tree trimming, mowing, fertilizing, edging;
Irrigation maintenance;
Painting and repair of wood furniture;
Trash removal and general maintenance; including, but not
limited to, repairs and replacement of lights, sidewalks,
curbs, furniture, plantings.
2. That the work to be performed may be by day labor, by
City force, by contract or by any combination thereof.
7-3
3. That the designated period of the project shall be from
- January 1 through December 31, 1991. Costs of the project shall
be collected in the manner provided in the Richfield Ordinance
Code.
Passed by the City Council of the City of Richfield, Minnesota,
this 23rd day of July, 1990.
Steven J. Quam Mayor
ATTEST:
Thomas P. Ferber City Clerk
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 183
Agenda July 23, 1990
Issue Statement•
Public hearing to consider specially assessing current
maintenance services for City alleys for the period of January 1
through December 31, 1991, City Project No. 864.
Bachround
On June 11, 1990, the City Council scheduled a public hearing for
July 23, 1990 concerning the 1991 alley maintenance project.
In order to implement the alley maintenance policies previously
passed by the City Council, it is necessary for the Council to
initiate this specific alley maintenance project. The
maintenance functions to be financed through special assessments
include such work as rough grading, cleaning and sweeping, cold
patching and snow plowing. Because the vast majority of alleys
have now been paved., the primary maintenance function is
anticipated to be snow plowing. Some of the alleys resurfaced in
the early 1980's have also reached the time when concrete joint
sealing needs to be done.
Community Services Department personnel estimate the cost of this
project far the period January 1 through December 31, 1991 to be
521,000. The amount of special assessment could vary according
to the amount of work necessary on each .individual alley. The
costs for the repair of an alley will be charged to the property
owners abutting the alley. $7.50 per average fifty foot lot is
the estimate for sweeping and a normal winter of snow plowing.
$3.25 per average fifty foot lot is an estimate of the costs to
continue a concrete joint sealing maintenance program on a paved
alley as a part of routine maintenance. .Estimates of additional
costs on those alleys not of concrete has been about $23 per
average fifty foot lot. Costs have varied depending on the
amount of patching required in a particular alley.
For comparison purposes, the following is provided related to
alley maintenance special assessment for current services:
Year
1985
1986
1987
1988
1989
1990
1991
Estimated
$23,600
$ 7, 000
$17,000
$20,000
$20,000
$21,000
Actual
$15,141.97
$11,834.29
S 9,977.18
$ 8,453.93
517,725.98
Recommended Motion:
Following the close of the public hearing, adopt the attached
resolution ordering City Project No. 864, 1991 Alley Maintenance
project and special assessment of current services.
J-1
Basis of Recom__mendation:
1. Notice of the proposed assessment was published in the
official City newspaper.
2. Each property owner within the area proposed to be assessed
was mailed a notice as required by State law.
3. It has been the Council policy for nine years to assess for
alley maintenance.
_Al_ternative Re_c_o_m_mend__ation:
None.
Discussion Decision Mode:
The current alley maintenance .project will lapse at the end of
the year. A new project should be established by January 1, 1991
so the Council may defer the decision to a future meeting before
the end of the year if desired.
Respectfully submitted,
James ~ Prosser
City Manager
Attachment
JDP/e j a
~j'Z.
RESOLUTION N0.
RESOLUTION ORDERING THE UNDERTAKING OF
CURRENT SERVICES PROJECT FOR ALLEY MAINTENANCE
JANUARY 1, 1991 THROUGH DECEMBER 31, 1991
CITY PROJECT NO. 864
WHEREAS, a resolution of the City Council adopted the 11th
day of June, 1990, faxed a date for a public hearing on the
proposed maintenance of the following alleys:
Number Surrounding Avenues Surrounding Streets
1001 Xerxes - Washburn 66th - 67th
1002 Xerxes - Washburn 67th - 68th
1003 Xerxes - Washburn 68th - 69th
-1004 Xerxes - Washburn 69th - 70th
1005 Washburn - Vincent 66th - 67th
1006 Washburn - Vincent 67th - 68th
1007 Washburn - Vincent 68th - 69th
1008 Washburn - Vincent 69th - 70th
1009 Vincent - Upton 66th - 67th
1010 Vincent - Upton 67th - 68th
1011 Vincent - Upton 68th - 69th
1012 Vincent - Upton 69th - 70th
1013 Upton - Thomas 66th - 67th
1014 Upton - Thomas 68th - 69th
1015 Upton - Thomas 69th - 70th
1016 Thomas - Sheridan 66th - 67th
1017 Thomas - Sheridan 67th - 68th
1018 Thomas - Sheridan 68th - 69th
1019 Thomas - Sheridan 69th - 70th
1020 Sheridan - Russell 66th- 67th
1021 Sheridan - Russell 67th - 68th
1022 Sheridan - Russell 68th - 69th
1023 Sheridan - Russell ~ 69th - 70th
1024 Russell -Queen 66th - 67th
• 1025 Russell - Queen 67th - 68th
• 1026 Russell - Queen 68th - 69th
1027 Russell - Queen 69th - 70th
1028 Queen - Penn 66th - 67th
1029 Queen - Penn 67th - 68th
.1030 Queen - Penn 68th - 69th
1031 Queen - Penn 69th - 70th
2001 Penn - Oliver 63rd - 64th
2002 Oliver - Newton 63rd - 64th
2004 Morgan - Logan 63rd - 64th
2005 Logan - Knox 63rd - 64th
2007 James - Irving 63rd - 64th
2008 Irving - Humboldt 63rd - 64th
2009 Humboldt - Girard 63rd - 64th
2010 Girard - Fremont (35W) 63rd - 64th
2011 Girard - Fremont (35W) 64th - 65th
2012 Girard - Fremont (35W) 65th - 66th
$-3
f~
2013 Fremont (35W) - Emerson 64th - 65th
2014 Fremont (35W) - Emerson 65th - 66th
2015 Dupont -.Colfax 63rd - Mildred
2016 Colfax - Bryant 63rd - Mildred
2017 Bryant - Aldrich 63rd - Mildred
2019 Graham.- Lyndale 66th - Lk Shr Dr
2020 Aldrich - Lyndale 75th - 76th
2021 Aldrich - Lyndale 76th - 77th
3002 Lyndale - Garfield 68th - 69th
3003 Augsburg - Garfield 70th - 71st
3004 Augsburg - Garfield 71st - 72nd
3005 Lyndale - Garfield 72nd - 73rd
3006 Lyndale - Garfield 73rd - 74th.
3007 Garfield - Harriet 71st - 72nd
3008 Garfield - Harriet 72nd - 73rd
3009 Garfield - Harriet. 73rd - 74th
3011 Harriet - Grand 67th - 68th
3012 Harriet - Grand 68th - 69th
3013 Harriet - Grand 72nd - 73rd
3014 Harriet - Grand 73rd - 74th
3015 Grand - Pleasant 68th - 69th
3016 Grand - Pleasant 72nd - 73rd
3018 Wentworth - Blaisdell 67th - 68th
3020 Blaisdell - Nicollet 72nd - 73rd
3021 Blaisdell - Nicollet 73rd - 74th
3022 Blaisdell - Nicollet 74th - 75th
3023 Blaisdell - Nicollet 75th - 76th
3024 Nicollet - 2nd Avenue 68th - 69th
3025 Nicollet - 1st Avenue 70th - 71st
3026 Nicollet - 1st Avenue 71st - 72nd
3027 Nicollet - 1st Avenue 72nd - 73rd
3028 ist - Stevens 71st - 72nd
3029 1st - Stevens 72nd- 73rd
3030 Stevens - 2nd Avenue 71st - 72nd
3031 Stevens - 2nd Avenue 72nd - 73rd
3032 2nd - 3rd Avenue 66th - 67th
3033 2nd - 3rd Avenue 71st - 72nd
3034 2nd - 3rd Avenue 72nd - 73rd
3035 3rd - Clinton 66th - 67th
3036 3rd - Clinton 73rd - 74th
3037 Clinton - 4th Avenue 66th - 67th
3038 Clinton - 4th Avenue 73rd - 74th
3039. 4th - 5th Avenue 66th - 67th
3040 4th - 5th Avenue 73rd - 74th
4001 13th - 14th Avenue 65th - 66th
4002 14th - 15th Avenue 62nd - 63rd
4004 15th - Bloomington 62nd - 63rd
4005 15th - Bloomington 65th - 66th
40.06 Bloomington - 16th Avenue 65th - 66th
4007 Cedar - Longfellow 63rd - 64th
4008 Cedar - Longfellow 64th - 65th
4009 Cedar - Longfellow 65th - 66th
4012 22nd - Standish 65th - 66th
4013 13th - 14th Avenue 66th - 67th
g - ~I
WHEREAS, the owner of each parcel within the area proposed
to be assessed for the current maintenance services described in
said resolution was mailed a copy of the required notice, and
WHEREAS, ten days mailed notice and at least two weeks
advance publication of the required notice was given as required
by law, and
WHEREAS, the public hearing was held on this 23rd day of
July, 1990, at which time all persons desiring to be heard were
given an opportunity to be heard.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield, Minnesota, as follows:
1. Such alley maintenance is hereby ordered as proposed by
resolution adopted June 11, 1990.
2. The work to be performed may be by day labor, by City
force, by contract or by any combination thereof.
Passed by the City Council of the City of Richfield, Minnesota,
this 23rd day. of July, 1990.
Steven J. Quam Mayor
ATTEST:
Thomas P. Ferber City Clerk
'~
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 184
Agenda July 23, 1990
Issue Statement:
Public hearing to adopt the special assessment roll for City
Project No. 844, 1989 Lyndale/Hub/Nicollet (LHN) maintenance for
the period January 1, 1989 through December 31, 1989.
Backaround•
The Council has scheduled a public hearing to be held July 23,
1990 on the assessment for the cost of current maintenance
services performed in the LHN Redevelopment Area for the period
January 1 through December 31, 1989. City staff has calculated
the proper amounts to be assessed against every assessable lot,
piece or parcel of land specially benefited. The proposed
assessment was properly filed with the City Clerk, notice was
duly published, and notices were mailed to the owner of each
parcel described in the assessment roll.
The cost of current maintenance services for this period totaled
$43,151.T9. The 1988 total for this work was $44,405.24.
Estimated 1990 costs for the current maintenance services is
$44,560.
The current maintenance services for this period included, but
were not necessarily limited to, one or more of the following,
including labor, equipment and materials:
1. Landscaping, including tree trimming;
2. Sidewalk sweeping in the summer;
3. Snow removal in the winter;
4. Sidewalk deicing;
5. Painting and repair of wood furniture;
6. Trash removal;
7. General maintenance, including repairs and replacement
8. Irrigation maintenance.
The City ordinance provides that special assessments for current
services may be certified to the County Auditor for collection
along with taxes. It is the staff recommendation that such
payments be due and payable within the first year, rather than in
installments. The adopted assessment roll for the period January
1 through December 31, 1989 would be certified with the County
Auditor by October 10, 1990. The City has the right to charge
interest on the amount assessed in that the-City provided the
funds initially for the current services. It is the
4i
recommendation of City staff that the interest rate be
established at eight percent. Payment may be made by the
assessed owner before November 15, 1990, in order to avoid
interest payments. Payments made after that date would include
the interest payment.
Recom_men_ded Motion:
Approve the attached resolution adopting the assessment on City
Project No. 844, LHN Maintenance for the period January 1 through
December 31, 1989.
Basis of Recommendatio_n_:
1. Notice of the assessment has been published in the official
City newspaper as required by state statute.
2. Each affected property owner has been notified as required by
law.
Alternative Recommendation:
None.
Discussion/Decision Mode:
The City Council may make changes as deemed necessary in the
assessment roll as a result of the public hearing by adding the
phrase "and has amended such proposed assessment as it deems
dust." The assessment roll must. be submitted to Hennepin County
by October 10, 1990 so the Council can defer the decision .one
meeting if it deems necessary.
Respec ally submitted,
James D Prosser
City ager
:Attachment
JDP/reb _
q-2
RESOLUTION NO.
RESOLUTION ADOPTING ASSESSMENT ON CITY PROJECT NO.~ 844
LHN MAINTENANCE FOR THE PERIOD .JANUARY 1 - DECEMBER 31, 1989
WHEREAS, pursuant to proper notice duly given as required by
law, the Council has met and passed upon all objections to the
proposed assessment for current services related to maintenance
of the Lyndale/Hub/Nicollet (LHN) Redevelopment Area, which is
approximately bounded by 64th Street, First Avenue, 67th Street
and Emerson Avenue in the City of Richfield.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield, Minnesota as follows:
1. Such proposed assessment roll, in the total amount of
$43,151.19, is hereby accepted and shall constitute the special
assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the
proposed current services in the amount of assessment levied
against it.
2. Such assessment shall be payable before or during 1990
and shall bear interest at the rate of eight percent from the
date of adoption of this assessment resolution.
~ - 3. The owner of any property so assessed may, at any time
prior to certification of the assessment to the county auditor,
pay the whole of the assessment on such property to the city's
Assessing Division and he may, at any time thereafter, pay to the
.:;ty's Assessing Division the entire amount of the assessment
remaining unpaid, with interest accrued to December 31 of the
year in which payment is made. Such payment must be made before
November 15 or interest will be charged through December 31 of
the succeeding year.
4. The city clerk shall forthwith transmit a certified
:duplicate of this assessment roll to the county auditor to be
extended on the proper tax lists of the county and such
assessment shall be collected and paid over in the same manner as
other municipal taxes.
Passed by the City Council of the City of Richfield,
Minnesota this 23rd day of July, 1990.
Steven J. Quam Mayor
ATTEST:
Thomas P. Ferber City Clerk
~o
CITY OF RICHFIELD, MINNESOTA
Council .Letter No. 185
Agenda July 23, 1990
Issue Statement:
Public hearing to adopt the special assessment roll for City
Project No. 846, Interstate/Lyndale/Nicollet (ILN) Maintenance
for the period January 1, 1989 through December 31, 1989.
Background•
The Council has scheduled a public hearing to be held July 23,
1990 on the assessment for the cost of current maintenance
services performed in the ILN Redevelopment Area for the period
January 1 through December 31, 1989. City staff has calculated
the proper amounts to be assessed against every assessable lot,
piece or parcel of land specially benefited. The proposed
assessment was properly filed with the City Clerk, notice was
duly published, and notices were mailed to the owner of each
parcel described in the assessment roll.
The cost of current maintenance services for this period totaled
56,135.54. The estimated cost for 1989 ILN maintenance was
57,254. .Actual cost of ILN maintenance in 1988 was 57,001.47.
The current maintenance services for this period included, but
were not necessarily limited to, one or more of the following,
including labor, equipment and materials:
1. Landscape maintenance of common properties, including
mowing, fertilizing, edging;
2. Irrigation maintenance;
3. Trash removal and general maintenance.
The City ordinance provides that special assessments for current
services may be certified to the County Auditor for collection
•along with taxes. It is staff recommendation that such payments
be due and payable within the first year, rather than in
installments. The adopted assessment roll for the period January
1 through December 31, 1989 would be certified with the County
Auditor by October 10, 1990. The City has the right to charge
interest on the amount assessed in that the City provided the
funds initially for the current services. It is the
recommendation of City staff that the interest rate be
established at eight percent. Payment may be made by the
assessed owner before November 15, 1990, in order to avoid
interest payments. Payments made after that date would include
the interest payment.
Recommended Motion:
Approve the attached resolution adopting the assessment on City
Project No. 846, ILN Maintenance for the period January 1 through
December 31, 1989.
i~-
Basis of Recommendation:
1. Notice of the assessment has been published in the official
City newspaper as required by state statute.
2. Each affected property owner has been notified as required by
law.
Alternative Recommendation:
None- ---- -------
Discussion/Decision Mode:
The City Council may make changes as deemed necessary in the
assessment roll as a result of the public hearing by adding the
phrase "and has amended such. proposed assessment as it deems
just." The assessment roll must be submitted to Hennepin County
by October 10, 1990 so the Council can defer the decision one
meeting if it deems necessary.
Respect ly submitted,
Jame Prosser
City anager
Attachment
JDP/reb
iL-z
RESOLUTION NO.
RESOLUTION ADOPTING ASSESSMENT ON CITY PROJECT NO. 846
ILN MAINTENANCE FOR THE PERIOD JANUARY 1 - DECEMBER 31, 1989
WHEREAS, pursuant to .proper notice duly given as required by
law, the council has met and passed upon all objections to the
proposed assessment for current services related to maintenance
of the Interstate/Lyndale/Nicollet (ILN) Redevelopment Area,
which is approximately bounded by Lyndale Avenue, 78th Street,
the railroad tracks and 77th Street including that property known
as Hennepin County Property Identification No. 34-028-24.-,33-0073
in the City of Richfield.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield, Minnesota as follows:
1. Such proposed assessment roll in the total amount of
$6,135.54, is hereby accepted and shall constitute the special
assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the
proposed current services in the amount of assessment levied
against it.
2. Such assessment shall be payable before or during 1990
and shall bear interest at the rate of eight percent from the
date of~adoption of this assessment resolution.
~~
3. The owner of any property so assessed may, at any time
prior to certification of the assessment to the County Auditor,
pay the whole of the assessment on such property to the City's
Assessing Division and he may, at any time thereafter, pay to the
City's Assessing Division the entire amount of the assessment
remaining unpaid, with interest. accrued to December 31 of the
year in which payment is made. Such payment must be made before
November 15 or interest will be charged through December 31 of
the succeeding year.
4. The City Clerk shall forthwith transmit a certified
duplicate. of this assessment roll to the County Auditor to be
extended on the proper tax lists of the county and such
assessment shall be collected and paid over in the same manner as
other municipal taxes.
Passed by the City Council of the City of Richfield,
Minnesota this 23rd day of July, 1990.
Steven J. Quam Mayor
ATTEST:
Thomas P. Ferber City Clerk
CITY OF RICHFIELD, MINNESOTA
Council Letter No.186
Agenda July 23, 1990
Issue Statement:
Public hearing to adopt the special assessment roll for City
Project No. 845, 1989 alley maintenance for the period January 1,
1989 through December 31, 1989.
Backaround•
The City Council has scheduled a public hearing for July 23, 1990
on the assessment for the cost of current maintenance services on
alleys for the period 3anuary 1 through December 31, 1989. The
City staff has calculated the proper amounts to be assessed
against every assessable lot, piece or parcel of land specially
benefited.
The proposed assessment was properly filed with the City Clerk,
notice was duly published and notices were mailed to the owner of
each parcel described in the assessment roll.
The cost of current maintenance services January 1 through
December 31, 1989 totaled $17,725.98 and included labor, material
and equipment related to alley patching, snowplowing and joint
cleaning. Due to the length of the list, the assessment roll is
not included in the Council packet, but a copy of the assessment
roll for alley maintenance January 1 through December 31, 1989
will be available for Council reference and review at the July
23, 1990 City Council public hearing.
The cost of maintenance services in 1988 totaled $8,453.93. The
1989 estimated cost was $20,000 which included initiation of a
concrete joint sealing maintenance program. The estimated cost
of maintenanc~•services for 1.990 is $20,000.
City staff will be available at the hearing to answer questions
about the special assessment that may not have been raised prior
to the hearing. The public hearing provides an opportunity for
all interested persons to present their objections, if any, to
such proposed assessment.
The City ordinance provides that special assessments for current
services may be certified to the County Auditor for collection
along with current taxes. It is recommended that the
certification adopted by the City Council provide that payments
be due and payable within the first year, rather than in
installments. The City has the right to charge interest on the
amount assessed in that the City provided the funds initially for
the current services. It is the recommendation of staff that the
interest rate be established at eight percent, the maximum
permitted by law. A property owner may make payment before
November 15, 1990 in order to avoid interest payments. Payments
made after that date, up to December 31, 1991 would include the
interest charges.
Recommended Motion:
Following the public hearing, it is recommended that the City
Council adopt the attached resolution, adopting the assessment
roll of City Project No. 845, alley maintenance for the period
January 1, 1989 through December 31, 1989.
Basis of Recommendation:
1. Notice of the assessment has been published in the official
City newspaper as required by state statute.
2. Each affected property owner has been notified as required by
law.
Alternative Recommendation:
None.
Discussion Decision Mode:
The City Council may make changes as deemed necessary in the
assessment roll as a result of .the public hearing by adding the
phrase "and has amended such proposed assessment. as it deems
just." The assessment roll-must be submitted to Hennepin County
by October 10, 1990 so the Council can defer the decision one
meeting if it deems necessary.
Respect ully submitted,
James Prosser
City anager
Attachment
JDP/reb
I~-2
RESOLUTION NO.
RESOLUTION ADOPTING ASSESSMENT ON CITY PROJECT NO. 845
ALLEY MAINTENANCE FOR THE PERIOD JANUARY 1 - DECEMBER 31, 1989
WHEREAS, pursuant to proper notice duly given as required by
law, the council has met and passed upon all objections. to the
proposed assessment far- current services related to maintenance
of the following alleys in the City of Richfield:
Number Surrounding Avenues Surroundin g Streets
1001 Xerxes - Washburn 66th - 67th
1002 Xerxes - Washburn 67th - 68th
1003 Xerxes - Washburn 68th - 69th
1004 Xerxes - Washburn 69th - 70th
1005 Washburn - Vincent 66th - 67th
1006 Washburn - Vincent 67th - 68th
1007 Washburn - Vincent 68th - 69th
1008 Washburn - Vincent 69th- 70th
1009 Vincent - Upton 66th - 67th
1010 Vincent - Upton 67th - 68th
1011 Vincent - Upton 68th - 69th
1012 Vincent - Upton 69th - 70th
1013 Upton - Thomas 66th - 67th
1014 Upton - Thomas 68th - 69th
1015 Upton - Thomas 69th - 70th
1016 Thomas - Sheridan 66th -- 67th
1017 Thomas - Sheridan 67th - 68th
:018 Thomas - Sheridan 68th - 69th
1019 Thomas - Sheridan 69th - 70th
1020 Sheridan - Russell 66th - 67th
1021 Sheridan - Russell 67th - 68th
1.022 Sheridan - Russell 68th - 69th
1023 Sheridan - Russell 69th - 70th
1024 Russell - Queen 66th - 67th
1025 Russell - Queen 67th - 68th
1026 Russell - Queen 68th - 69th
1027 Russell - Queen 69th - 70th
1028 Queen - Penn 66th - 67th
1029 Queen - Penn 67th - 68th
1030 Queen - Penn 68th - 69th
1031 Queen - Penn 69th - 70th
2.001 Penn - Oliver 63rd - 64th
2002 Oliver - Newton 63rd - 64th
2004 Morgan - Logan 63rd - 64th
2005 Logan - Knox 63rd - 64th
2007 James - Irving 63rd - 64th
2008 Irving - Humboldt 63rd - 64th
2009 Humboldt - Girard 63rd - 64th
2010 Girard - Fremont (35W) 63rd - 64th
2011 Girard - Fremont (35W) 64th - 65th
2012 Girard - Fremont (35W) 65th - 66th
2013 Fremont (35W) - Emerson 64th - 65th
I I -3
2014 Fremont (35W) - Emerson 65th - 66th
2015 Dupont - Colfax 63rd - Mildred
2016 Colfax - Bryant 63rd - Mildred
2017 Bryant - Aldrich 63rd - Mildred
2019 Graham - Lyndale 66th - Lk Shr Dr
2020 Aldrich - Lyndale 75th - 76th
2021 Aldrich - Lyndale 76th - 77th
3002 Lyndale - Garfield 68th - 69th
3003 Augsburg - Garfield 70th - 71st
3004 Augsburg - Garfield 71st - 72nd
3005 Lyndale - Garfield 72nd - 73rd
3006 Lyndale - Garfield 73rd - 74th
3007 Garfield - Harriet 71st - 72nd
3008 Garfield - Harriet 72nd - 73rd
3009 Garfield - Harriet 73rd - 74th
3011 Harriet - Grand 67th - 68th
3012 Harriet - Grand 68th - 69th
3013 .Harriet - Grand 72nd - 73rd
3014 Harriet - Grand 73rd - 74th
3015 Grand - Pleasant 68th - 69th
3016 Grand - Pleasant 72nd - 73rd
3018 Wentworth - Blaisdell 67th - 68th
3020 Blaisdell - Nicollet 72nd - 73rd
3021 Blaisdell - Nicollet 73rd - 74th
3022 Blaisdell - Nicollet 74th - 75th
3023 Blaisdell - Nicollet 75th - 76th
3024 Nicollet - 2nd Avenue 68th - 69th
3025 Nicollet - 1st Avenue 70th - 71st
3026 Nicollet - 1st Avenue 71st - 72nd
3027 .Nicollet - 1st Avenue 72nd - 73rd
3028 1st - Stevens 71st - 72nd
3029 1st - Stevens 72nd - 73rd
3030 Stevens - 2nd Avenue 71st - 72nd
3031 Stevens - 2nd Avenue 72nd - 73rd
3032 2nd - 3rd Avenue 66th - 67th
3033 2nd - 3rd Avenue 71st - 72nd
3034 2nd - 3rd Avenue 72nd - 73rd
_ 3035 3rd - Clinton 66th - 67th
3036 3rd -.Clinton 73rd - 74th
3037 Clinton - 4th Avenue 66th - 67th
3038 Clinton - 4th Avenue 73rd - 74th
3039 4th - 5th Avenue 66th - 67th
3040 4th - 5th Avenue 73rd - 74th
4001 13th - 14th Avenue 65th - 66th
4002 14th - 15th Avenue 62nd - 63rd
4004 15th - Bloomington. 62nd - 63rd
.4005 15th - Bloomington 65th - 66th
4006 Bloomington - 16th Avenue 65th - 66th
4007 Cedar - Longfellow 63rd - 64th
4008 Cedar - Longfellow 64th - 65th
4009 Cedar - Longfellow 65th - 66th
4012 22nd - Standish 65th - 66th
4013 13th - 14th Avenue 66th - 67th
i~-~
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield, Minnesota:
1. Such proposed assessment roll, in the total amount of
$17,725.98 is hereby accepted and shall constitute the special
assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the
proposed current services in the amount of the assessment levied
against it.
2. Such assessment shall be payable before or during 1990
and shall bear interest at the rate of eight percent from the
date of adoption of this assessment resolution.
3. The owner of any property so assessed may, at any time
prior to certification of the assessment to the county auditor,
pay whole or part of the assessment on such property to the
city's Assessing Division and he may, at any time thereafter, pay
to the City's Assessing Division the entire amount of the
assessment remaining unpaid, with interest accrued to December 31
of the year in .which payment is made. Such .payment must be made
before November 15 or interest will be charged through December
31 of the succeeding year.
4. The city clerk shall forthwith transmit a certified
duplicate of this assessment roll to the county auditor to be
extended on the property tax lists of the county, and such
assessments shall be collected and paid over in the same manner
as other municipal taxes.
Passed by the City Council of the City of Richfield,
Minnesota this 23rd day of July, 1990.
Steven J. Quam Mayor
'ATTEST:
Thomas P. Ferber City Clerk
IZ
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 187
Agenda July 23, 1990
Issue Statement•
Public hearing on adoption of the assessment roll for removal of
diseased trees from private property. for the period January 1,
1989 through December 31, 1989.
Bachround
The City Council has scheduled a hearing to be held on Monday,
July 23, 1990, for the assessment of the cost for removal of
diseased trees from private property during the period January 1,
1989 through December 31, 1989. City staff has calculated the
proper amounts to be assessed against every assessable lot, piece
or parcel of land specially benefited. The proposed assessment
was properly filed with the City Clerk, notice was duly published
and notices were mailed to the owner of each parcel described in
the assessment roll.
The cost of diseased tree removal from private property for this
period totaled $17,519.45.. City ordinance provides that special
assessments for current_ services may be certified to the County
Auditor for collection along with taxes. This certification may
provide that the assessment be completely paid in the first year
or in annual installments. It is the staff recommendation that
such payments be due and payable over a three-year period.
The adopted assessment roll for the period January 1, 1989
through December 31, 1989 would be certified with the County
Auditor by October 10, 1990. The City has the right to charge
interest on the amount assessed in that the City provided the
funds for the initial expense. It is the staff recommendation
that the interest rate be established at eight percent, the
maximum allowed by state law. Payment may be made by the
assessed owner before November 15, 1990 in order to avoid
interest payments. Payments made after that date would include
:the interest payment.
City staff will be available at the hearing to answer questions
about the special assessment that may not have been raised prior
to the hearing. The public hearing provides an opportunity for
all interested persons to present their objections, if any, to
such proposed assessment.
Recommended Motion:
Following the public hearing, approve the attached resolution
adopting the assessment for removal of diseased trees from
private property for the period of January 1, 1989 through
December 31, 1989. It is further recommended that such payments
be due and payable over a three-year period.
I2-4
Ba__sis of Recommendation:
1. Each affected property owner has been notified of the
proposed assessment as required by law.
2. Notice of the assessment has. been published in the official
city newspaper as required by State Statute.
Alternate Recommendation:
None.
Discussion Decision_Mode:
Council may make any changes deemed necessary in the assessment
roll as a result of the hearing by adding the phrase," and has
amended such proposed assessment as it deems just."
Respect ly submitted,
James b.~ Prosser
City M~nager
Attachment
JDP/reb
Z-Z
RESOLUTION N0.
RESOLUTION ADOPTING ASSESSMENT ON REMOVAL OF DISEASED TREES
FROM PRIVATE PROPERTY FOR THE PERIOD OF
JANUARY 1, 1989 TO DECEMBER 31, 1989
WHEREAS, pursuant to proper notice duly given as required by
law, the City Council has met and passes upon all objections to
the proposed assessment for current services related to removal
of diseased trees from the following private property in the City.
of Richfield:
PROPERTY ADDRESS
6236 Bloomington Avenue
6311 15th Avenue
2020 West 68th Street
7329 Colfax Avenue
7626 Nicollet Avenue
7401 Dupont Avenue
6314 14th Avenue
6505 Irving Avenue
6520 23rd Avenue
6435 Oliver Avenue
6344 Irving Avenue
6512 22nd Avenue
400-402 West 64th Street
6627 15th Avenue
6500 22nd Avenue
7326 Stevens Avenue
6644 Pleasant Avenue
7419 Pillsbury Avenue
7513 Aldrich Avenue
6708 1st Avenue
6704 Russell Avenue
6420 17th Avenue
6945 18th Avenue
2500 West 66th Street
6325 22nd Avenue
'7016 Columbus Avenue
7414 18th Avenue
6317 21st Avenue
6434 Humboldt Avenue
6812 Emerson Avenue
682920th Avenue
6600 Columbus Avenue
6449 Girard Avenue
6305 Bloomington Avenue
6629 Lynwood Boulevard
6633 Lynwood Boulevard
Property Identification Number
26-02824-12-0049
26-02824-12-0117
28-02824-32-0103
33-02824-14-0051
34-02824.-34-0006
33-02824-41-0082
26-02824-12-0138
28-02824-24-0147
25-02824-24-0117
28-02824-23-0075
28-028.24-21-0007
25-02824-24-0012
27-02824-22-0075
26-02824-42-0011
25-02824-24-0014
34-02824-13-0033
27-02824-32-0031
34-02824-31-0045
33-02824-41-0166
27-02824-42-0013
29-02824-41-0095
26-02824-14-0016
26-02824-44-0073
29-02824-14-0059
25-02824-21-0019
35-02824-22-0012
35-02824-41-0008
25-02824-21-0041
28-02824-24-0008
28-02824-42-0090
25-02824-33-0011
26-02824-32-0004
28-02824-13-0011
26-02824-11-0031
28-02824-41-0031
28-02824-41-0032
NOW, THEREFORE, HE IT RESOLVED by the City Council of the
City of Richfield, Hennepin County, Minnesota, as follows:
i z-3
1. Such proposed assessment roll, in the amount of
$17,519.45, is hereby accepted and shall constitute the special
assessment against the lands named herein, and each tract of land
therein included is hereby found to be benefited by the proposed
current services in the amount of the assessment levied against
it.
2. Such assessment shall be payable in no more than three
annual installments and shall bear interest at the rate of eight
percent from the date of adoption of this assessment resolution.
3. The owner of any property so assessed may, at any time
prior to certification of the assessment to the county auditor,
pay the whole of the assessment on such property to the city's
Assessing Division, and he may at any time thereafter, .pay to the
city's Assessing Division the entire amount of the assessment
remaining unpaid, with interest accrued to December 31 of the
succeeding year.
4. The City Clerk shall forthwith transmit a certified
duplicate of this assessment roll to the county auditor to be
extended on the proper tax lists of the county and such
assessments shall be collected and paid over in the same manner
as other municipal taxes.
Passed by the City Council of the City of Richfield, Minnesota,
this 23rd day of July, 1990.
Steven J. Quam
ATTEST:
Mayor
`Thomas P. Ferber City Clerk
~3
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 188
Agenda July 23, 1990
Issue Sta_tement•
Public hearing and adoption of a resolution approving the
Expanded New Home Program Redevelopment Plans and Tax Increment
Financing Plans and providing an interim source of funding.
Background:
On July 16, 1990, the HRA approved the Expanded New Home Program
redevelopment and tax increment financing plans (Plans). They
also requested the City Council to schedule a public hearing on
the plans, to approve the plans and provide interim funding.
Prior to action. by the HRA, the Planning Commission on June 26,
1990, found the plans and proposed acquisition and disposition of
property by the HRA to be in conformance with the Comprehensive
Plan.
It is now appropriate for the City Council to act to establish
the program. .This letter and the attachments provide a basis for
action and program description. The attachments include:
City Council Resolution;
HRA Capital Improvement Fund Status Report;
Time and Activity Schedule;
Summary of Housing Conditions; and,
Redevelopment and Tax Increment Plans
The complete redevelopment and tax increment plans follow.
The expanded New Home Program is being proposed at the request of
both the HRA and City Council. The Hennepin Technical College
(Vo-Tech) New Home Program has operated for ten years. However,
the limited availability of funding and Vo-Tech students has made
it possible to remove only about one or two substandard garage or
cottage .houses a year and produce one or two new homes per year.
*Objectives•
The two basic objectives of the Expanded New Home Program are to:
1) provide families and individuals living in a substandard
poor quality environment an opportunity to move to
standard housing by establishing a cash market for their
existing housing;
2) provide an opportunity for Richfield to house families
seeking larger housing units with features popular in
today's market. This housing would encourage existing
residents seeking this type of housing to remain in
Richfield and attract new residents as well.
13-~
*Financing_
Financing of program activities would be provided by three
sources; 1) City funds, 2) proceeds of sale from developers, and
3) tax increment.
The HRA would utilize City funds to purchase a property. A few
minutes after completing the purchase, the property would be sold
to a developer. The difference between the purchase price paid
by the HRA and sale price paid by the developer would be returned
to the City by the HRA through the tax increment (TIF) over a
period of up to 25 years.
- Estimated start up funding from
City to purchase up to 27 properties $1,620,950
- Estimated. proceeds of sale from developers $ 797,500
- Estimated net amount to be repaid by TIF S 823,450
The TIF of $823,450 would be paid over a period of 23 years with
an average annual increase of 2$ in market value of the homes
constructed. At the 15th year, the outstanding balance would be
$343,011; in the 20th year the balance would be $115,532; and in
the 23rd year the balance would be $0. If the market value
remained unchanged over 25 years, the TIF would fall short by
$117,713. Note however, that a Hennepin County analysis
indicates that over the last five years, single family home
values in Richfield have cumulatively increased approximately 10$
(average of 2$ per year), and over the last ten years, values
cumulatively increased 47$ (average of 4.7~ per year). If
property appreciation is greater than that required for repayment
of funds borrowed, interest would be paid on loaned City funds.
Staff has examined potential funding sources. There are
virtually no funds available from organizations outside the City.
CDBG funds are too limiting, both in terms of dollars available
and restrictions on the use of the funds. The HRA Capital
:Improvement Program Fund is fully committed to supporting
existing programs. (See attached summary.)
It is proposed that interim financing be spread against four
funds; Sewer Utility Fund, Water Utility Fund, General Fund, and
LHN Tax Increment Fund. Each fund would provide up to $250,000
of financing. The loans would carry an interest rate determined
by current market value. Each fund has a balance, a portion of
which can be utilized without jeopardizing outstanding existing
obligations of the fund. The use of a portion of the balance of
each of these funds to provide interim financing for the Expanded
New Home Program has been evaluated by the City Attorney, the
City's fiscal consultant and the City Auditor. From a legal and
fiscal point of view, this concept is sound.
13 -2
An additional comment related to financing. The 1990 legislative
session has tied Local Government Aid (LGA) to the amount of tax
increment generated by a newly established redevelopment tax
increment district. Beginning in the 6th year and continuing
through the 25th year of the TIF district, LGA is reduced in an
increasing amount. An analysis of this impact indicates that in
1996 the LGA reduction would approximate $600. It would peak in
2001 and continue at approximately $8,000 annually through the
25th year of the district. The total cumulative dollar reduction
is estimated at $109,000. The present value of the $109,000
would approximate $19,000.
*ACguisition•
All property•purchased by the HRA would be required to meet the
following criteria:
- Voluntarily offered for sale;.
- Owner-occupied or vacant so as to avoid relocation payment;
- Substandard as to condition and/or obsolete as to design;
- A developer has agreed to purchase from the HRA;
- Value determined by appraisal report, offer to owner
based on the appraised value, and authorization by HRA to
purchase.
*Redevelopment•
Only competent•experienced developers would be selected. It is
likely that approximately five or six developers would be
selected to construct up to 29 houses; each being responsible for
approximately five homes.
A developer's agreement would establish the construction
schedule, minimum value of property after construction ($110,000
'to $140,000), developers willingness to sign an Assessment
Agreement and provide the HRA access to the property to demolish
the substandard and/or obsolete house.
*Marketinv•
Developers.would be responsible for marketing the new homes. At
this time, staff has already collected a listing. of 11 households
which have expressed an interest in purchasing a new home.
Further, families with children enrolled in Richfield schools may
offer a significant market. (The houses they would vacate may be
suitable for new families moving into the community). To that
end on March 5, 1990, the Richfield Board of Education adopted a
motion in support of the proposed program and the use of TIF.
i3-3
- Recommended Motion:
Adopt the attached resolution which:
1. Approves the Redevelopment and TIF Plans A and B, and,
A-1 and B-1 respectively.
2. Provides interim financing.
Basis of Recommendation:
1. The proposal is consistent .with the concept presented in
January, 1990.
2. The Planning Commission found the Plans and proposed
acquisition and relocation to be in conformance with the
Comprehensive Plan on June 26th, 1990.
3. The HRA approved the Plans on July 16, 1990 and requested
City Council support..
4. Monies are available in the sewer., water and general funds
as well as the LHN Tax Increment Fund.
5. There is a market of voluntary willing owners who wish to
sell their substandard and/or obsolete homes.
6. There is evidence of a market for new larger contemporary
housing.
7. Conversations with Mr. Merlin Grant, President of Marvin H.
Anderson Construction Company and board member of the MN
Builders Association, indicate the program should be
marketable to developers.
8. Many of the program elements have been used previously in
both redevelopment and housing programs.
9. Existing staff resources are available to administer the
program and can be funded from the current HRA New Home
Program._
10. Legal counsel has reviewed the program and related documents
and found them to be in compliance with existing law.
11. On March 5, 1990, the Richfield School Board adopted a
resolution in support of this program concept.
12. The notice of public hearing was published in the Richfield
Sun-Current, July 11, 1990.
Alternative Recommendation:
1. Modify the proposed program.
2. Delay action until a future time.
13 -`~
3. Terminate any additional activity on the proposal.
Discussion Decision Mode:
An objective of this program is to make it possible for
developers to initiate construction in late 1990. To do so, it
is necessary to adopt the proposed resolution on July 23, 1990.
(See attached schedule.)
Respe t£ lly submitted,
~~
Jame Prosser
Cit~nager
JDP:ds
I J-~
CITY OF RICHFIELD
RESOLUTION NO.
RESOLUTION APPROVING THE REDEVELOPMENT PLANS
AND TAX INCREMENT FINANCING PLANS FOR THE
EXPANDED NEW HOME - SCATTERED SITE HOUSING PROGRAM
BE IT RESOLVED by the City Council of 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 (Authority) has identified
the Expanded New Home - Scattered. Site Housing Program
project areas (Project) within the city as being in need
of development, redevelopment, and construction of new
single family homes in order to provide families and
individuals living in a substandard, poor quality
environment an opportunity to move to standard housing by
establishing a cash market for their existing housing and
to provide an opportunity for Richfield to accommodate
families currently residing in Richfield or elsewhere who
are seeking larger housing units with features popular in
today's market.
1.02 On July 16, 1990, the Authority adopted a Redevelopment
Plan for Project Area "A", Redevelopment Plan for Project
Area "B", Tax Increment Financing Plan for Tax Increment
District "A-1" and Tax Increment Financing Plan for Tax
Increment District "B-1", all relating to the Expanded New
Home - Scattered Site Housing Program (collectively,
Plans), which call for public and private expenditures to
encourage development, redevelopment, and new construction
of single family homes within the project areas.
.1.03 The Plans, dated July 16, 1990, are on file with the city
clerk.
1.04 In accordance with the Housing and Redevelopment
Authorities Act and Tax Increment Financing Act
(collectively, Acts), the Plans were referred to the
Richfield planning commission which on June 26, 1990,
found that they conformed to and were not in conflict with
the general plan for redevelopment of the city as a whole.
1.05 The Authority on July 16, 1990, approved the Plans and
referred them to the city council for public hearings to
be held by the City as required by the Acts.
1.06 Copies of the Plans have been forwarded to the school
boards of Independent School District No. 280,
Intermediate School District No. 287, and the board of
13-~
commissioners of Hennepin County along with the
Authority's estimate of the fiscal impact on other taxing
jurisdictions of establishing the TIF districts, and
notice of public hearings on the Plans to be held by the
City as required by the Acts.
1.07 This council has fully reviewed the contents of the Plans
and has this date conducted public hearings thereon which
the views of all interested persons were heard.
Section 2. Findings; Redevelopment Projects.
2.01 It is hereby found and determined that within the Project
there exist conditions of physical deterioration, economic
obsolescence, and unsafe, unsanitary and other poor
housing used or intended to be used for living. which are
injurious to the health, safety, morals and welfare of the
citizens of this community.
2.02 It is further specifically found and determined that:
a.) The property in the Project would not be made
available for redevelopment without the public
.intervention and financial assistance described
in the Plans;
( b.) The Redevelopment Plans for the Project will
t afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the
redevelopment of the Project by private
enterprise; and
c.) The Redevelopment Plans conform to the general
development plan of the City as set forth in the
comprehensive municipal plan.
2.03 The findings in this section are made in compliance with
Section 469.08, subdivision 2 of the Housing and
Redevelopment Authorities Act for the purpose of showing
the City's intent to exercise, in conjunction with the
Authority, the powers granted to the City and the
Authority by the Act.
Section 3. Findings; Tax Increment Financing Districts
3.01 The tax increment financing districts hereby established
in the Project are redevelopment tax increment financing
districts within the meaning of section 469.174, subd.
10(a)(1) of the TIF Act.
3.02 It is found and determined that it is necessary and
desirable to the sound and orderly development and.
redevelopment of the Project and the City as a whole, and
for the protection and preservation of the public health,.
13 -~
safety, and general welfare, that the authority of the TIF
Act be exercised by the Authority and the City to provide
public financial assistance within the Project.
3.03 It is further found and determined, and it is the reasoned
opinion of the Authority and the City, that the
redevelopment proposed in the Plans could not reasonably
be expected to occur solely through private investment
within the reasonably foreseeable future and that
therefore the use of tax increment. financing is necessary.
3.04 The TIF Plans conform to the general plan for
redevelopment of the City as a whole.
3.05 The proposed public improvements to be financed largely
through tax increment financing are necessary to permit
the City to realize the full potential of the Project in
terms of development intensity, employment opportunities
and tax base.
3.06 The TIF Plans will afford maximum opportunity, consistent
with the sound needs of the City as a whole, for the
redevelopment of the Project by private enterprise.
Section 4. Project and District Established; Certification;
FiiinQ,
4.01 The Plans are hereby approved and adopted.
4.02 The geographic boundaries of the Redevelopment Project
Areas and the TIF Districts are as described in the Plans,
which documents are hereby adopted by reference.
4.03 A copy of the. staff report and findings, which was the
basis upon which the Authority and City concluded that the
tax increment financing districts qualified as
redevelopment tax increment financing districts, shall be
retained by the Authority for the duration of the TIF
districts.
4.04 The Authority is requested to file a copy of the Plans
.with the Minnesota commissioner of trade and economic
development as required by the TIF Act.
4.05 The HRA intends to request that the City assist from time
to time in financing the public redevelopment costs
identified in the TIF Plans by a loan payable from capital
proceeds from land sale and tax increment from the TIF
Districts, and other revenues.
4.06 The HRA intends to pay interest on the borrowed funds if
the cash flow from the TIF Districts is sufficient after
the payment of principal.
13- 8
4.07 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.
4.08 The city clerk is authorized and directed to transmit a
certified copy of this resolution to the Authority.
Passed this 23rd day of July, 1990, by the City Council of the
City of Richfield, Minnesota.
Steven J. Quam, Mayor
ATTEST:
Thomas P. Ferber, City Clerk
t
i 3 -9
HRA
Capital Improvement Fund
Status
The HRA Capital Improvement Fund was established in 1984 as part
of the annual HRA budget. The monies in the fund were provided
largely by LHN land sale proceeds and interest earnings. The
fund was established to deal with decreasing revenues from
federal and state governments and increasing needs of the
community.
The objectives of the fund were to provide:
1) additional revenues to administer housing programs
2) "front end" monies for redevelopment activities.
The fund makes it possible for Richfield to successfully operate
several programs. The New Home Program, Rehabilitation Program
and Section 8 Program have been supported by this fund.
For redevelopment projects, the fund has supported all_the
activities which must be completed prior to initiating
development activities with a redeveloper. For example, this
fund provided "front end" monies for the ILN, PASSS, CABA and
70th and Penn projects.
Initially, the thought was that the "front end" costs would be
paid back by land. sale or bond issue proceeds within the
projects. However, development deals in the last few years yield
very little, if any, cash from developers "up front". Changes in
state law severely restrict the ability of the HRA to recover the
"front end" costs through bond issues. Thus, this fund also
provides financial support to redevelopment projects after a
developer has committed to a project.
Capital Fund Use 1984 through 1989
Housing $ 310,000
Redevelopment $ .560,000
Projected Expenditures 1990
Housing $ 14,000
Redevelopment $ 130,000
Projected Balance 12/31/90 $1,024,000
For the HRA to continue to administer housing programs and to
support redevelopment project activities, it is important to
minimize the expenditure of the principal of this fund to
maximize the interest earning potential. Historically, the
interest earnings have ranged from $80,000 to $95,000.
~ 3--~
Expanded New Home Program
Activity
HRA Meeting
Review
Procedural Manual
Redevelopment Plan
Tax Increment Finance Plan (TIF)
Developer's Agreement
Request of Planning Commission
Find Redevelopment and TIF
Plans in Conformance with
Comprehensive Plan including
acquisition and disposition of
real estate
Planning Commission Meeting
Findings regarding Plan Conformance
(See above)
HRA Meeting
Proposal to approve
Redevelopment and TIF Plans,
funding request and
Procedural Manual and request
City Council to hold public
hearing and approve Plans.
Public Bidding for Demo
Notice of Public Hearing published
City Council public hearing on
Redevelopment and TIF Plans and
consideration of proposal to approve
the Plans and funding arrangement.
Order Appraisals
Select Developers
HRA Authorization
Purchase Property
Sell Property
Developer Agreement
Special HRA Meeting
- Construction Start
(120 day construction period
per house).
Time Frame
June 18, 1990
June 26, 1990
July 16, 1990
July 11, 1990
July 23, 1990
Begin July 24, 1990
Aug. - Sept., 1990
Sept. - Dec., 1990
Sept. 10
Last quarter. of
1990 continuing
into 1991
13-II
Expanded New Home Program
Summary of Housing Conditions
During a recent eight day period, staff has had an opportunity to
inspect and evaluate properties offered to the HRA.
Over half of the homes inspected are located on the back of the
lot or have other insufficient setbacks. The average size of the
homes inspected was 690 square feet. This is significantly
smaller than the average Richfield home at 930 square feet.
Property conditions vary widely. Some houses are vacant and not
habitable. Other homes are in substandard condition and/or
obsolete in design and use. Below are examples of specific
conditions noted:
Uninhabitable Structures
- Collapsed roof causing extensive water damage, animal and
insect infestation, mold and fungus growing on carpet and
walls.
- Essential structural support members rotted causing threat of
collapse in portion of house.
- No subfloor under kitchen sink area, only dirt. This is
unsanitary and neither weather or rodent proof.
- A bathroom area created in a back hallway. The shower area
consists of plastic sheeting fastened to the wall with duct
tape. An uncleanable plywood sub floor is also not moisture
resistant anc~ there is no bathroom sink.
Substandard Structures
,- Space heaters as the only source of heat causing insufficient
heat distribution. Properties with space heaters are not
eligible fo~c FHA, VA or conventional mortgage financing.
- Siding, trim and soffit areas with extensive deterioration and
rot. A significant amount of trim and siding would have to be
replaced just to provide a nailing surface for vinyl or
aluminum siding.
- Improper construction framing methods have caused sagging
floors, buckling walls, and functional problems with doors and
windows. Joists are undersized and over spanned, joists and
beams have been cut and not supported, and joists which
were embedded in the concrete foundation are now rotting.
- Hazardous electrical and plumbing system problems; plumbing not
vented allowing sewer gases into the house; flexible waste and
13-13
- a savings can be realized, minimal closing costs and no
realtor fees result by participating in the HRA program.
- owners are tired of substandard and inefficient housing
and "want out".
- the homes are the least desirable in the market place and
owners would prefer to rent the substandard dwelling to
someone else than stay.
H90-3-0129
13-1 ~
Expanded New Home Program
Redevelopment and Tax Increment Plans
Summary
Rather than starting at the beginning of the Plan documents, the
first paragraph below is intended to explain the basic concept of
the Plans.
The Expanded New Home Program activities will be conducted from
within two large redevelopment projects known as Redevelopment
Project Area "A" and Redevelopment Project Area "B" (see page 34
or 68 for map both of which are the same). Each redevelopment
project area will have a tax increment district, Tax Increment
Redevelopment District "A-1" and Tax Increment Redevelopment
District "B-1" respectively. Each district will be composed of
parcels purchased by the HRA. They are located on the maps, page
34 or 68 and listed on pages 16 and 50. The same properties are,
also listed on pages 35 and 69. The only parcels which could
become part of district "A-1" and "B-1", would be those listed.
No property will be purchased which is not listed. Although all
the owners of property listed expressed interest in selling, it
is likely that negotiations will not be satisfactorily concluded
with all the owners. Thus, not all property listed will be
purchased.
In project "A", there are 19 properties listed and project "B"
lists 8 for a total of 27. However, two of the parcels are
double lots. Twenty-seven properties are listed but 29 new
houses may be constructed.
The balance of the Plan documents are similar to those previously
reviewed and approved by the HRA and City Council for other
projects such as the ILN and PASSS. A few of the more
significant features of the documents. are briefly identified as
follows.
Because the activities in each project area are the same, the
documents for Redevelopment Project Area "A" and "B" are the same
except the "Description of the Redevelopment Project Area"
(boundary description); and "Acquisition and Relocation
Activities " (list of properties to be considered for purchase).
The documents for Tax Increment Redevelopment Districts "A-1" and
"B-1" are the same except for "Parcels in Acquisition" (list of
properties to be considered for purchase), "Original Tax
Capacity", "Estimated Captured Tax Capacity" and the
"Appendices".
Objectives are listed on page 14 of the "A" document. They are
the same in all documents.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR.
THE CITY OF RICHFIELD, MINNESOTA
MASTER PLAN
EXPANDED NEW HOME -SCATTERED SITE
HOUSING PROGRAM
FOR
REDEVELOPMENT PROJECT AREA "A"
AND
TAX INCREMENT FINANCING DISTRICT "A-1 "
~3EDEVELOPMENT PROJECT AREA "B"
AND
TAX INCREMENT FINANCING DISTRICT "B-1 "
DATED: JULY 16, 1990
PREPARED BY:
The City of Richfield
Department of Community Development
Housing and Redevelopment Division
6700 Portland Avenue South
Richfield, MN 55423
(612) 86i-9760
MAYOR
STEVEN J. QUAM
CITY COUNCIL
Edwina Garcia
Martin Kirsch
Ivan Ludeman
Michael Sandahl
HOUSING AND REDEVELOPMENT AUTHORITY
Thomas Harms, Chair
Edwina Garcia
Joan He/mberger
Ivan Ludeman
Vern Luettinger
CITY MANAGER/EXECUTIVE DIRECTOR
James D. Prosser
PLANNING COMMISSION
Thomas Ohnesorge, Chair
Nancy Edwardson
Michael Gallagher
Robert Nelson
Morris Nilsen, Jr.
Lorraine Prind/e
Thomas Scaglia
William Snyder
David Sumnicht
CITY STAFF
Byron Wallace
Director, Community Development
John Dean
HRA Attorney
Ronald Batty
HRA Attorney
Bruce Palmborg
Housing & Redevelopment Coordinator
Bruce Nordquist
Housing Supervisor
Catherine Jones
Housing Specialist
Kathy Jablonsky
Redevelopment Specialist
Diane Nordquist
Community Development Technician
The Housing and Redevelopment Authority
in and for
The City of Richfield, Minnesota
Redevelopment Plan
for
Redeye/opment Project Area "A"
and
Tax Increment Financing Plan
for
Tax Increment Redevelopment Disfrict "A-1 "
of the
Expanded New Home -Scattered Site
Housing Program
Dated: July 16, 1990
TABLE OF CONTENTS
Part 1.
Redevelopment Plan
for
Redevelopment Project Area "A"
PAGE
A. Statement of Public Purpose 1
B. Statutory Authority 1
C. Description of Redevelopment Project Area. 2
D. Statement of Goals and Objectives 3
E. Development Activities and Agreements 4
F. Proposed Land Use 6
G. Acquisition and Relocation Activities 6
H. Environmental Considerations 7
I. Redevelopment Plan Modification. 7
J. Administration of Redevelopment Project 7
Part ll.
Tax Increment Financing Plan
for
Tax Increment Redevelopment District "A-1 "
,A. Statutory Authority 9
B. Statement of Objectives 9
C. Development Program 9
D. Description of Property in the
Tax Increment Financing District 10
E. Classification of the Tax Increment
Financing District 10
F. Parcels In Acquisition- 12
G. Estimate of Costs 12
H. Estimated Amount of Obligated Funds. 13
(i)
I. Sources of Revenue 13
J. Original Tax Capacity 13
K. Estimated Captured Tax Capacity 14
L. Duration of the District 14
M. Estimated Impact on Other Taxing Jurisdictions. 14
N. Modifications of the Tax Increment
Financing District 14
0. Limitation on Administrative Expenses 14
P. Limitation on Duration of Tax Increment
Financing Districts 15
Q. Limitation on Qualification of Property in
Increment District not Subject to Improvement. 15
R. Limitation of the Use of Tax Increment 15
S. Notification of Prior Planned Improvements 16
T. Excess Tax Increments 16
U. Restrictions on Pooling; Five-Year Limit. 17
V. Assessment Agreements 18
W. Administration of the Tax .Increment Financing District
and Maintenance of the Tax Increment Account 19
X. Annual Disclosure Requirements. 19
Y. Assumptions 20
Z. Municipal Findings 20
Appendix A: Map: Redevelopment Project Area "A". 25
Appendix B: Property in the Tax Increment
Redevelopment District "A-1" 27
Appendix C: Estimate of .Tax Increments . 28
Appendix D; Tax Increment Financing Budget. 29
Appendix E: Estimate of Impacts on Other
Taxing Jurisdictions 30
(ii)
Part i.
Redevelopment Plan
for
Redevelopment Project Area "A"
A. Statement of Public Purpose
It is found that there is not in this city a sufficient
supply of .adequate safe and sanitary dwelling accommodations;
that in certain areas thereof there exist substandard conditions,
unsafe and unsanitary housing-and buildings and structures used
or intended to be used for living; which by reason of
sociological and technological changes, dilapidation,
obsolescence, overcrowding, and faulty arrangement or design of
building and improvements, lack of public facilities,
ventilation, light and sanitary facilities, or deleterious land
use, or obsolete layout, or any combination of these and other
factors are injurious to the health, safety, morals and welfare
of the citizens of this state; cause an increase and spread of
crime, juvenile delinquency and disease, inflict blight upon the
economic value of large areas; threaten the source of public
revenues while decentralizing communities to areas improperly
planned and not related to public facilities; and require
citizens to occupy unsafe, unsanitary and overcrowded dwellings.
Therefore, in order to respond to public interest and protect
the overall economic stability of the housing area, redevelopment
of neighborhoods is required to create an economic environment
which fosters the growth of a healthy residential base and
encourages private enterprise to engage in redevelopment and new
construction to be implemented in accordance with a comprehensive
community plan. The Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota (HRA) and the City Council
of the City of Richfield, Minnesota (City) have determined that
public intervention is necessary in Redevelopment Project Area
"A" (Project Area "A") of the Expanded New Home - Scattered Site
Housing Program (Housing Program) in order to achieve goals and
objectives for the area.
B. Statutory~Authority
The statutory authority for the undertaking of a
redevelopment project in Project Area "A" and the activities
proposed in the redevelopment plan relating thereto is conferred
upon the HRA pursuant to and in accordance with the Housing and
Redevelopment Authorities Act, Minn. Stat., Sec. 469.001 to
469.047, inclusive, as amended. Specifically, Minn. Stat., Sec.
469.027 establishes the requirements for redevelopment plan
preparation by an HRA prior to undertaking property acquisition,
redevelopment, development and other related improvements.
-1-
C. Description of the Redevelopment Project Area
In order to guide development and redevelopment. in Project
Area "A", the HRA has created this redevelopment plan.. Pursuant
to Minn. Stat., Sec. 469.002, subd. 12, the proposed project
meets the definition of a redevelopment project, defined in Minn.
Stat., Sec. 469.002, subd. 14, and will henceforth, be referred
to ws the. redevelopment project. The boundary for Project Area
"A"encompasses all that real property within an area described
as follows:
Beginning at the intersection of the southerly right-of-way.
line of East 62nd Street and the easterly right-of-way line
of 11th Avenue South, thence, in a line easterly more or
less., along said southerly right-of-way line to its
intersection with the westerly right-of-way line of
Bloomington Avenue South. Thence, southerly along said
westerly right-of-way line to its intersection with the
southerly right-of-way line of East 63rd Street. Thence,
easterly. along said. southerly right-of-way line to its
intersection with the easterly right-of-way line of 16th
Avenue. Thence, southerly along said easterly right-of-way
to its intersection with the northerly property line of Lot
2, Block 1, Iverson's Second Addition. Thence, easterly
along said northerly property line, as extended, to its
intersection with the westerly right-of-way line of 18th
Avenue South. Thence, southerly along said westerly right-
. of-way line to its .intersection with the southerly right-
of-way line of Diagonal Boulevard. Thence, southwesterly
more or less, along said southerly right-of-way line to its
intersection with the southerly right-of-way line of East
73rd Street. .Thence, westerly along said southerly right-
of-way line to its intersection with the easterly property
line of Lot 5, Block 4, Henry Thernell Addition. Thence,
southerly along said easterly property .line, as extended,
to its intersection with the northerly right-of-way line of
East 76th Street. Thence, westerly along said northerly
.right-of-way line to its intersection with the westerly
property line of Lot. 4, Block 8,` Sunset Terrace. Thence,
northerly along said westerly property line, as extended,
to its intersection with the northerly property line of Lot
8, Block 8, Sunset Terrace. Thence, westerly along
northerly property line, as extended, to its intersection
with the easterly right-of-way line of Lyndale Avenue
South. Thence, northerly along said easterly right-of-way
line. to its intersection with the southerly right-of-way
line of West 74th Street. Thence, westerly along said
southerly right-of-way to its intersection with the
easterly property line of Lot 26, Block 25, Irwin Shores.
Thence, southerly along said easterly property line, as
extended, to its intersection with the northerly right-of-
way line of West 76th Street. Thence, westerly along said
northerly right-of-way line to the intersection with the
westerly right-of-way line of Fremont Avenue South.
-2-
Thence, northerly along said westerly right-of-way line to
its intersection with the northerly right-of-way line of
Humboldt Avenue South. Thence, northwesterly and northerly
more or less, along said northerly right-of-way line to its
intersection with the southerly right-of-way line. of West
73rd Street. Thence, easterly more or less, along said
southerly right-of-way line to its intersection with the
easterly right-of-way line of Lyndale Avenue South.
Thence, northerly more or less, along said easterly right-
of-way line to its intersection with the southerly right-
of-way line of West .68th Street. Thence, easterly along
said southerly right-of-way line to its intersection with
the easterly right-of-way line of Pleasant Avenue South.
Thence, northerly along said easterly right-of-way line to
its intersection with the. northerly .property line of Lot 7,
Block 2,-Ralph Hollenbach's First Addition. Thence,
easterly along said northerly property line, as extended,
to the easterly right-of-way line of Wentworth Avenue
South. Thence, southerly along said easterly right-of-way
line to its intersection with the northerly property line
of Lot 6, Block 2, Oaklane Addition. Thence, easterly
along said northerly property line, as extended, to its
intersection with the westerly right-of-way line of
Blaisdell Avenue South. Thence southerly along said
westerly right-of-way line to its intersection with the
southerly right-of-way line of West 68th Street. Thence,
easterly along said southerly right-of-way line to its
intersection with the easterly right-of-way line of
Nicollet Avenue South. Thence, northerly along said
easterly right-of-way line to its intersection with the
northerly right-of-way line of East 67th Street. Thence,
easterly along said northerly right of way line to its
intersection with the easterly right-of-way line of First
Avenue South. Thence, northerly along said easterly right-
of-way line to its intersection with the southerly right-
of-way line of -East .66th Street. Thence, easterly along
said southerly right-of-way line to its intersection with
the easterly right-of-way line of 11th Avenue South.
Thence, northerly along said easterly right-of-way line to
the point of beginning.
(Also refer to Appendix A, Map: Project Area "A".)
D. .Statement of Goals and Objectives
The HRA determines that it is necessary, desirable, and in
the public interest to undertake a redevelopment project in the
City pursuant to the provisions of Minn. Stat., Chapter 469, as
amended. The HRA determines that the funding of the necessary
activities and improvements in the redevelopment project area
shall be accomplished through the use of tax increment financing
and other revenue sources available to the HRA and City.
-3-
The following goals and objectives are intended to serve as a
basis for guiding activities in the redevelopment project area:
1. To develop strategies to encourage development and
redevelopment of single family homes.
2. To maintain a positive environment within the .residential
community. ,
3. To enrich the quality of life for residents through
planning.
4. To recognize the needs of all segments of the populace
through diversity in housing stock which is a major
determinant of the living environment.
5. To achieve a high level of design quality to enhance the
physical environment.
6. To achieve a balanced variety of housing stock
.appropriate to the market area.
7. To enhance the residential tax base of the community.
$. To protect the surrounding residences from the adverse
effects of dilapidation and. deterioration.
9. To eliminate unsightly, blighting, deteriorated, and
substandard structures..
10. To provide an expanded range of housing opportunities of
sufficient quality and size through development,
redevelopment and new construction.
11. To provide maximum opportunity, consistent with the needs
of the city for development by private enterprise.
12. To coordinate .elements of the City's Comprehensive Plan
with these project objectives.
E. Development Activities and Agreements
The objectives of this redevelopment plan will be
accomplished pursuant to the .authority granted to the HRA by the
Housing and Redevelopment Authorities Act, Minn. Stat., Sec.
469.001, et sea• The following activities are appropriate for
the area.
Description of Anticipated Public Development Activities
The anticipated public development activities in the
redevelopment project area to be undertaken by the HRA and City
-4-
in order to support the private development activities include:
1. Property acquisition;
2. On-site clearance;
3. On-site improvements;
4. Remedial site environmental activities; and
5. Adjacent public improvements and utilities which service
site.
Description of Anticipated Private Development Activities
The private development activities within the project area
which are anticipated to occur include:
1. Property acquisition;
2. On-site clearance;
3. On-site improvements;
4. New construction;
5. Remedial site environmental activities; and
6. Adjacent public improvements and utilities which service
site.
Any and all proposals for development and redevelopment will
be reviewed by the HRA and City, when appropriate, to determine
conformance with the redevelopment plan and applicable municipal
ordinances and. codes. Property acquired by the HRA will be
subject to a contract for sale to 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, creedP or national origin on the sale, lease,
transfer, or occupancy of the property purchased from the
HRA.
-5-
F. Proposed Land Use
The current land uses in the redevelopment project area
include the following:
- Single family residential;
- Apartment;
- Duplex;
- Commercial;
- Parks;
- .Schools;
- Vacant;
- Public; and
- Quasi-public (e.g. churches, cemetery, nursing homes,
private schools, and service organizations).
New uses will be restricted to single family residential.
G. Acquisition and Relocation Activities
1. Acquisition
As a means of comprehensively formulating an expanded New
Home Program, HRA staff recently undertook the following
tasks to identify property for acquisition:
a. Analysis of residential property tax records with
estimated. property values less than or .equal to
$55,000;
b. Survey residential property owners to gauge interest
in the new program and identify potential sellers and
time frame for voluntary acquisition;
c. Evaluation of survey results including identification
of sellers indicating desire for immediate program
participation and voluntary sale of property; and
d. Evaluation of properties for program eligibility.
The following property has been identified for
acquisition for Cycle_I of :the program:
PID NUMBER ADDRESS
26-028-24-11-0024 6351 Bloomington Ave. So.
26-028-24-12-0083 6332 - 15th Ave. So.
26-028-24-12-0087 6349 - 14th Ave. So.
26-028-24-12-0114 6325 - 15th Ave. So.
26-028-24-13-0046 6425 - 15th Ave. So.
~,
~J
•
-6-
26-028-24-13-0047 6415 - 15th Ave. So.
26-028-24-13-0049 6407 - 15th Ave. So.
26-028-24-13-0051 6400 - 15th Ave. So.
26-028-24-13-0079 6518 - 15th Ave. So.
26-028-24-13-0102 6538 Bloomington Ave. So.
26-028-24-13-0115 6501 - 15th Ave. So.
26-028-24-14-0096 6401 Bloomington Ave. So.
26-028-24-14-0116 6507 Bloomington Ave. So.
27-028-24-42-0068 6612 - 2nd Ave. So.
33-028-24-42-0014 7435 Emerson Ave. So.
34-028-24-i1-0079 7039 - 5th Ave. So.
34-028-24-12-0085 7129 - 1st Ave. So.
34-028-24-13-0094 7216 - 1st Ave. So.
34-028-24-14-0041 7320 - 5th Ave. So.
2. Relocation
The HRA accepts as binding its obligations under
provisions of federal and state law (Minn. Stat., Sec. 117.50
through 117.56) for relocation.
H. Environmental Considerations
Generally, the. redevelopment project area is developed. All
.proposed public and private development resulting from this plan
will be evaluated against existing environmental regulations.
I. Redevelopment Plan Modification
All redevelopment plan modifications will be processed in
accordance with Minn. Stat., Sec. 469.029, subd. 6.
J. Administration of Redevelopment Project
The redevelopment project and related housing program will be
administered by the Richfield Housing and Redevelopment
Authority.
-7-
(Intentionally Left Blank)
-8-
Part l/.
Tax Increment Financing Plan
for
Tax Increment Redevelopment District "A-1 "
A. Statutory Authority
The statutory authority for the undertaking of a tax
increment financing district (TIF District "A-1") in
Redevelopment Project Area "A" (Project Area "A") for the
Expanded New Home -.Scattered Site Housing Program (Housing
Program) and the activities proposed in the tax increment plan
relating thereto is conferred upon the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (HRA),
pursuant to and in accordance with the Tax Increment Financing
Act, Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended.
B. Statement of Objectives
The HRA and the City seek to achieve the goals and objectives
set forth in Part I of the Redevelopment Plan.
C. Development Program
1. Description of Development Activities
On January 16, 1990, the HRA adopted a motion directing
staff to proceed with the formulation of an expanded New Home
Program. In order to gauge interest in the new program and
initially identify residential property for program
participation, the following tasks were undertaken:
a. Analysis. of residential property tax records with
estimated property values less than or equal to
$55,000;
b. Survey residential property owners to gauge interest
in the new program and identify potential sellers and
time frame for voluntary acquisition;
c. Evaluation of survey results including identification
of sellers indicating desire for immediate program
participation and voluntary sale of property; and
d. Evaluation of properties for program eligibility.
A comprehensive, integrated approach for acquisition,
site clearance, and new construction has been formulated and
will be provided through program guidelines. .The HRA will
assist prospective developers with development,
redevelopment, new construction, and other related activities
within the context of this Plan, the Redevelopment Plan and
other related guidelines.
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2. Development Activities Covered by Contract
Currently, there are no development contracts.
3. Other Development Not Under Contract Reasonably Expected
to Occur in the Project.
Proposals from prospective developers will be required to
be submitted to the HRA as part of the review process. The
following .activities. may be expected to occur:
1. Property .Acquisition;
2. On-site clearance;
3. On-site improvements;
4. New construction;
5. Remedial site environmental activities; and
6. Adjacent public improvements and utilities which
service site.
For Cycle I of the Housing Program, a total of 27
properties have been identified for program participation and
acquisition. Nineteen of the properties are located within
Redevelopment Project Area "A" while the remaining eight are
within Redevelopment Project.Area "B". (Refer to Appendix A
for map of Redevelopment Project. Areas.) Redevelopment
Project Area B contains two properties with double lots. With
property subdivisions, two additional homes will be
constructed. Initial construction for Cycle I is anticipated
to begin toward the end of the last quarter of calendar year
1990, with construction for each home to run approximately .
120 days. Timing of construction is contingent upon
favorable market conditions, reasonable time period for
processing applications and availability of funding revenue.
D. Description of Property in the Tax .Increment Financing
District
Property located within TIF District "A-1" is identified in
Appendix B.
E. Classification of the Tax Increment Financing District
The Richfield HRA and City Council, in determining the need
for a tax increment financing district in accordance with Minn.
Stat., Sec. 469.`174 to 469.179, inclusive, as amended, find that
the district to be established within Project Area "A" is a
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redevelopment tax increment financing district as defined in
Minn. Stat., Sec. 469.174, subd. 10:
It has been ascertained that parcels consisting of 70
percent of the area of the district are occupied by
buildings, streets, utilities or other improvements and
more than 50 percent of the buildings, not including
outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance.
""Structurally substandard" shall mean containing
defects in structural elements or a combination of
deficiencies in essential utilities and facilities,
light and ventilation, fire protection including
adequate egress, layout and condition of interior
partitions, or similar factors, which defects or
deficiencies are of sufficient total significance to
justify substantial renovation or clearance."
"A building is not structurally substandard if it is in
compliance with the building code applicable to new
buildings or could be modified to satisfy the building
code at a cost of less than 15 percent of the cost of
constructing a new structure of the same square footage
and type on the site. The municipality may find that a
building is not disqualified as structurally
substandard under the preceding sentence on the basis
of reasonably available evidence, such as the size,
type., and age of the building, the average cost of
plumbing, electrical, or structural repairs, or other
similar reliable evidence. If the evidence supports a
reasonable conclusion that the building is not
disqualified as structurally substandard, the
municipality may make such a determination without an
interior inspection or an independent expert appraisal
of the cost of repair and rehabilitation of the
building."
Since the tax increment parcels within the scattered site
program are non-contiguous, each parcel has been examined by
staff against the statutory definitions of structurally
substandard and other blight definitions. Each structure has
qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the
tax increment financing district meets the requirements of a
redevelopment tax increment financing district. A detailed
account of property examination for eligibility are enumerated
within a document entitled "Expanded New Home - Scattered Site
Housing Program: Blight Qualification Survey" which will be on
file at City Hall for the duration of the tax increment
district's life.
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F. Parcels in Acquisition
The following property has been ide ntified for acquisition:
PIN NUMBER ADDRESS
26-028-24-11-0024 6351 Bloomington Ave. So.
26-028-24-12-0083 6332 - 15th Ave. So.
26-028-24-12-0087 6349 - 14th Ave. So.
26-028-24-12-0114 6325 - 15th Ave. So.
26-028-24-13-0046 6425 ..- 15th Ave. So.
26-028-24-13-0047 6415 - 15th Ave. So.
26-028-24-13-0049 6407 - 15th Ave. So.
26-028-24-13-0051 6400 - 15th Ave. So.
26-028-24-13-0079 6518 - 15th Ave. So.
26-028-24-13-0102 6538 Bloomington Ave. So.
26-028-24-13-0115 6501 - 15th Ave. So.
26-028-24-14-0096 6401 Bloomington Ave. So.
26-028-24-14-0116 6507 Bloomington Ave. So.
27-028-24-42-0068 6612 - 2nd Ave. So.
33-028..-24-42-0014 7435 Emerson Ave. So.
34-028-24-11-0079 7039 - 5th Ave. So.
34-02.8-24-12-00.85 7129 - 1st Ave. So.
34-028-24-13-0094 7216 - 1st Ave. So.
34-028-24-14-0041 7320 - 5th Ave. So.
The tax increment district budget includes acquisition costs
for subsidy purposes which will be offe red to developers as
development incentives.
G. Estimate of Costs
The estimate of public costs associ ated with the tax
increment district are outlined in the
D budget listed in Appendix
.
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H. Estimated Amount of Obligated Funds
At the current time, approximately $1 million is available to
implement this program. Repayment of these funds will be through
the use of tax increment financing and other sources of revenue
available to the HRA and City.
An estimate of the amount of bonded indebtedness for
redevelopment is expected to be $0. The term of the issues is 0
years including 0 years of capitalized interest with an
anticipated taxable interest. rate of 0$. The amount of
capitalized interest is estimated to be $0.
I. Sources of Revenue
The primary source of revenue to be used to finance public
costs associated with proposed developments in the redevelopment
project area is tax increment. In addition to the tax increment
revenue, other sources of revenue potentially available to the
HRA and City .may be utilized.
J. Original Tax Capacity
Pursuant to Minn. Stat., Sec. 469.175, subd. 1 and Sec.
469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF
District "A-1" is based on the January 2, 1990 assessed value
placed on the property by the county assessor. The OTC for the
district is $17,730. (See Appendix B, Property Located in Tax
Increment Financing District "A-1".) Each year the office of the
county auditor will measure the amount of increase or decrease in
the total net tax capacity of the tax increment district to
calculate the tax increment payable to the redevelopment district
fund. In any~year in which there is an increase in total net tax
capacity in the tax increment district above the original net tax
capacity, a tax increment will be payable. In any year in which
the total net--tax capacity in the tax increment district declines
below the original net tax capacity, no tax capacity will be
captured and no tax increment will be payable.
The coup*y auditor shall certify in each year after the date
the original net tax capacity was certified, the amount the OTC
has increased or .decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of
the district; or
3. Change due to stipulations, adjustments, negotiated or
court-ordered abatements.
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K. Estimated Captured Tax Capacity
Pursuant to Minn. Stat., Sec. 469.175, subd: 1 and Minn.
Stat., Sec. 469.177, subd. 2, the estimated captured net tax
capacity (CTC) of the tax increment district is within a range of
$849 to $1,677 per home. The total CTC for 19 new homes .within
the project area ranges from $16,131 to $31,863. As a result of
the improvements to be constructed, it is expected that the
estimated captured net tax capacity will be available for the
housing program. It is also anticipated that this amount will be
captured not more than 25 years. (See Appendix C, Estimate. of
Tax Increments).
L. Duration of the District
.Pursuant to Minn. Stat., Sect. 469.176, subd. 1, the maximum
duration of a redevelopment tax increment district is 25 years.
The HRA elects to capture 100$ of the tax increments for the
duration of the district.
M. Estimated Impact on Other Taxing Jurisdictions.
Refer to Appendix E, Estimate of impacts on Other Taxing
Jurisdictions.
N. Modifications of the Tax Increment Financing District
All tax increment plan modifications will be processed in
accordance with Minn. Stat., Sec. 469.175, subd. 4.
The modifications pertaining to the necessary processing
include any reduction or enlargement of the geographic area of
the project or tax increment financing district; increase in
amount of bonded indebtedness to be incurred,. including a
determination of .capitalized interest. on debt if•that
determination was not a part of the original plan, or to increase
or decrease .the amount of interest on the debt to be capitalized;
increase in the portion of the captured tax capacity to be
retained by the HRA; increase in total estimated tax increment
expenditures or designation of additional property to be acquired.
by the HRA shall be approved upon the notice and after the
discussion, public hearing and findings required for approval of
the original plan. The geographic area of a tax increment
district may be reduced, but shall not be enlarged after .five
years following the date of certification of the original tax
capacity by the County Auditor.
O. Limitation on Administrative Expenses
In accordance with Minn. Stat., Sec. 469.174,. subd. 14, and
Minn. Stat., Sec. 469.176, subd. 3, for districts for which
certification was requested after June 30, 1982, no tax increment
shall be used to pay any administrative expenses for a project
which exceed ten percent of the total tax increment expenditures
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authorized by the tax increment financing flan or the total tax
increment expenditures for the project, whichever is less.
P. Limitation on Duration of Tax Increment Financing Districts
Pursuant to Minn. Stat., Sec. 469.176, subd. 1, the HRA must
issue bonds, or acquire property, or construct or cause public
improvements to be constructed within three years of the date of
certification of the tax increment district by the county
auditor.
Q. Limitation on Qualification of Property in Tax Increment
District Not Subject to Improvement
Pursuant to Minn. Stat., Sec. 469.176, subdivision 6, "if,
after four years from the date of certification of the original
net tax capacity of the tax increment. financing district..., no
demolition, rehabilitation or renovation of property or other
site preparation, including qualified improvement of a street
adjacent to a parcel but not installation of utility service
including sewer or water systems, has been commenced on a parcel
located within a tax increment financing district by the HRA or
by the owner of the parcel in accordance with the tax increment
financing plan, no additional tax increment may be taken from
that parcel, and the. original net tax capacity of that parcel
shall be excluded from the original net tax capacity of the tax
increment financing district. If the HRA or the owner of the
parcel subsequently commences demolition, rehabilitation or
renovation or other .site preparation on that parcel including
qualified improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the HRA shall
certify to the county auditor that the activity has commenced,
and the county auditor shall certify the net tax capacity thereof
most recently certified by the commissioner of revenue and add it
to the original net tax capacity of the tax increment financing
district."
.R. Limitation on the Use of Tax Increment
All revenues derived from tax increment shall be used in
accordance with the tax increment financing plan. The revenues
shall be used to finance or otherwise pay public redevelopment
costs pursuant to Minn. Stat., 469.001 to 469.047, inclusive, as
amended. These revenues shall not be used to circumvent existing
levy limit law. No revenues derived from tax increment shall be
used for the construction or renovation of a municipally owned
building used primarily and regularly for conducting the business
of the municipality. This provision shall not prohibit the use
of revenues derived from tax increments for the construction or
renovation of a parking structure, a commons area used as a
public park or a facility used for social, recreational or
conference purposes and not primarily for conducting the business
of the municipality.
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Pursuant to Minn. Stat., Sec. 469.17.6, subd. 4j, at least 90
percent of the revenues derived from tax increments from a
redevelopment district must be used to finance the cost of
correcting conditions-that allow designation of a redevelopment
district under section 469.174. These costs include acquiring
properties containing structurally substandard buildings or
improvements, acquiring adjacent parcels necessary to provide a
site of sufficient size to permit development, demolition of
structures, clearing of the land, and installation of utilities,
roads, sidewalks, and parking facilities for the site. The
allocated administrative expenses of the authority may be
included in the qualifying costs.
S. Notification of Prior Planned Improvements
Pursuant to Minn. Stat., Sec. 469.17.7, subd. 4, the HRA will
review and search property files for properties to be included in
the tax increment district and. to identify those properties for
which building permits have been issued during the 18 months
immediately preceding approval of the tax increment financing
plan by the City.
T. Excess Tax Increments
Pursuant to Minn. Stat., Sec. 469.176, subd. 2, ,in any year
in which the tax increment exceeds the amount necessary to pay
the costs authorized by the tax increment plan, including the
amount necessary. to cancel any .tax levy as provided in Minn.
Stat., Sec. 475.61, subd. 3, the HRA shall use the excess amount
tos
1. Prepay the outstanding bonds;
2. Discharge the pledge of tax increment therefor;
3. Pay into an escrow account dedicated to the payment of
such bond;.
4. Repay any loans including interest on these loans; or
5. Return the excess to the county auditor for
redistribution to the respective taxing jurisdictions in
proportion to their tax capacity rates.
The amounts distributed to a city or county must be
deducted from the levy .limits of the governmental unit
for the following year. In calculating the levy limit
base for later years, the amount deducted must be treated
as a local government aid payment.
For the purpose of this tax increment financing plan, excess
tax increment means that increment received in any year which is
in addition to the amount needed to satisfy the HRA's current
financial obligations or commitments,. as specified in the tax
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increment financing budget listed in Appendix D, or which is in
addition to that which is placed in a separate account for the
purpose of accumulating funds needed to satisfy those financial
obligations or commitments in the future.
U. Restrictions on F®oling; Five-Year Limit
In accordance with Minn. Stat., Sec.. 469.1763, the following
terms have the meanings given:
"Activities" means acquisition of property, clearing of land,
site preparation, soils correction, removal of hazardous waste or
pollution, installation of utilities, construction of public or
private improvements, and other similar activities, but only to
the extent that tax increment revenues may be spent for such
purposes under other law. Activities do not include allocated
administrative expenses, but do include engineering,
architectural, and similar costs of the improvements in the
district.
"Third party" means an entity other than (1) the person
receiving the benefit of assistance financed with tax increments,
or (2) the municipality or the development authority or other
person substantially under the control of the municipality.
Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect
to expenditures outside the district:
(a) For each tax increment financing district, an amount
equal to at least 75 percent of the revenue derived from tax
increments paid by properties in the district must be expended on
activities in the district or to pay bonds, to the extent that
the proceeds of the bonds were used to finance activities in the
district or to pay., or secure payment of, debt service. on credit
enhanced bonds. Not more than 25 percent of the revenue derived
from tax increments paid by properties in the district may be
expended, through a development fund or otherwise, on activities
•outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on
credit enhanced bonds. The revenue derived from tax increments
for the district that are expended on costs under section
469.176, subdivision 4h, paragraph (b), may be deducted first
before calculating the percentages that must be expended within
and without the district.
Pursuant to Minn. Stat., Sec. 469.173, subd. 3 with respect
to the five-year rule:
(a) Revenues derived from tax increments are considered to
have been expended on an activity within the district under
subdivision 2 only if one of the following occurs:
(1) before or within five years after
certification of the district, the revenues
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are actually paid to a third party with
respect to the activity;
(2) bonds,. the proceeds of which must be used
to-finance the activity, are issued and sold
to a third party before or within five years
after certification and the revenues are spent
to repay the bonds;
(3) binding contracts with a third party are
entered into for performance of the activity
before or within five years after
certification of the district and the revenues
are spent under the contractual obligation; or
(4) costs with respect to the activity are
paid before or within five years after
certification of the district and the revenues
are spent to reimburse a party for payment of
the GOStS.
(b) For purposes of this subdivision, bonds include
subsequent refunding bonds if one of two tests is met: (1) the
proceeds of the original refunded bonds were spent on activities
within five years after the district was certified or (2) the
original refunded bonds are issued within five years after the
district was certified and the proceeds are expended on
activities within a reasonable temporary period within the
meaning of the use of .that term under section 148(c)(1) of the
Internal Revenue :Code.
Pursuant to Minn. Stat., Sec. 469.173, subd. 4 with respect
to use of revenues for decertification:
Beginning with the sixth year following-certification of the
district, 75 percent of the revenues derived from tax increments
paid by properties in the district that remain after the
-expenditures permitted under subdivision 3 must be used only to
pay outstanding bonds, as defined in subdivision 3, paragraph
(a), clause (2), and paragraph (b) or contracts, as defined in
subdivision 3, paragraph (a), clauses (3) and (4). When the
outstanding bonds have been defeased and when sufficient money
.has been set aside to pay contractual obligations as defined in
subdivision 3, paragraph (a), clauses (3) and (4), the district
must be decertified and the pledge of tax increment discharged.
V. Assessment Agreements
Pursuant to Minn. Stat., Sec. 469.177, subd. 8, the HRA may
enter into an agreement in recordable form with a developer or
redeveloper of property within the tax increment district which
establishes a minimum market value of the land and completed
improvements. for the duration of the tax increment district. The
assessment agreement shall be presented to the county assessor
-18-
who shall review the plans and specifi~:~;: ;•7ns for the
improvements to be constructed, review Market value
previously assigned to the land upon wh<._ ~°he improvements are
to be constructed and so long as .the mia-~_a. , ~°= market .value
contained in the assessment agreement appea~:~s in the judgment of
the assessor, to be a reasonable estimate, the assessor may
certify the minimum market value agreement.
W. Administration of the Tax Increment District and Maintenance
of the Tax Increment Account
Administration of the tax increment district will be the
responsibility of the Richfield Housing and Redevelopment
Authority.
The tax increment received as a result of .increases in the
net tax capacity of the tax increment district will be maintained
in a special account separate from all other HRA and municipal
accounts and expended only upon sanctioned activities identified
in the tax increment financing plan.
X. Annual Disclosure Requirements
Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before
March 1 of each year, the HRA must annually report to the
commissioner of revenue the following:
1. Total principal amount of nondefeased tax increment
financing bonds that are outstanding at the end of the
previous calendar year; and
2. Total annual amount of principal and interest payments
that are due for the current calendar year on (i) general
obligation tax increment financing bonds, and (ii) other
tax increment financing bonds.
Also in accordance with this requirement the HRA must
.annually report to the commissioner of revenue the following
amounts for the tax increment financing district:
1. Type of district;
2. Date on which the district is required to be decertified;
3. Captured. net tax capacity of the district, by property
class as specified by the commissioner of revenue, for
taxes payable in the. current calendar year;
4. Tax increment revenues for taxes payable in the current
calendar year;
5. Whether the tax increment financing plan or other
governing document permits increment revenues to be
expended (i) to pay .bonds, the proceeds of which were or
-19-
may be expended on activities located outside of the
district, (ii) for deposit into a common fund from which
money may be expended on activities located outside of
the district, or (iii) to otherwise finance activities
located outside of the tax increment financing district;
and
6. Any additional information that the commissioner of
revenue may require..
Y. Assumptions
It was necessary to make certain assumptions regarding
income, costs and timing of the tax increment financing district.
These assumptions are based on discussions with the HRA, City,
and County staff, and consultants..
Z. Municipal Findings
Pursuant to Minn. Stat., Sec. 469.175, subd. 3, before or at
the time of approval of the tax increment financing plan, the
municipality shall make the following findings and shall set
forth in writing the reasons and supporting facts for each
determination:
1. The Tax Increment Financing District is a
redevelopment district pursuant to Minn. Stat., .
'Sec. 469.174, subd. 10. It has been determined
that parcels consisting of 70 percent of the area
of the district are occupied by buildings, streets,
utilities or other improvements and more than 50
percent of the buildings, not including-
outbuildings, are structurally substandard to a
degree requiring substantial renovation or
clearance.
Specifically, staff has examined each parcel
against the statutory definitions of structurally
substandard and other blight definitions due to the
non-contiguous nature of the tax increment parcels.
Each structure has qualified under Minn. Stat.,
Sec. 469.174, subd. 10. Thus, the tax increment
financing district meets the requirements of a
redevelopment tax increment financing district. A
detailed account of property examination for
eligibility are enumerated within a document
entitled "Expanded New Home - Scattered Site
Housing Program: Blight Qualification Survey"
which will be on file at City Hall for the duration
of the tax increment district's life.
2. The proposed activities listed in this plan, in the
opinion of the HRA, would not reasonably be
expected to occur solely-through private investment
-20-
within the reasonably foreseeable future.
Therefore, the use of tax increment financing is
deemed necessary since the proposed development
requires certain necessary planning, property
assembly and other improvements without which
prospective developers could not construct the
aforementioned improvements; and without the use of
tax increments or other revenues authorized by this
plan to assist with the financing of the
activities, prospective developers would not
proceed with redevelopment in the redevelopment
project area.
3. The tax increment financing plan conforms to the
general plan for the development of the City as a
whole as it will result in an expanded New Home
Program for the development, redevelopment, new
construction and other related improvements of
residential homes for which there is limited
sources of revenue available.
4. The tax increment financing plan will afford
maximum opportunity, consistent with the sound
needs of the City as a whole, for the development
by private enterprise as it will enable the HRA to
provide the necessary redevelopment for the
project area and City, as a whole, in a planning
manner suitable to both the public and private
sectors.
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(Intentionally Left Blank)
•
~~
U
-22-
APPENDICES
Expanded New Home -Scattered Site
Housing Program
Redevelopment Project Area "A"
and
Tax Increment Financing District "A-1 "
-23-
(Intentionally Left Blank)
•
-24-
APPENDIX A
MAP
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-25-
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APPENDIX B
PROPERTY LOCATED IN
TAX INCREMENT FINANCING DISTRICT "A-1"
ORIGINAL NET
PIN NUMBER ADDRESS TAX CAPACITY*
26-028-24-11-0024 6351 Bloomington Ave. So. $ 547
26-028-24-12-0083 6332 - 15th Ave. So. $ 1,506
26-028-24-12-0087 6349 - 14th Ave. So. $ 1,458
26-028-24-12-0114 6325 - 15th Ave. So. $ 1,611
26-028-24-13-0046 6425 - 15th Ave. So. $ 1,347
26-028-24-13-0047. 6415 - 15th Ave. So. $ 520
26-028-24-13-0049 6407 - 15th Ave. So. $ 541
26-028-24-13-0051 6400 - 15th Ave. So. $ 513
26-028-24-13-0079 6518 - 15th Ave. So. $ 1,362
26-028.-24-13-0102 6538 Bloomington Ave. So. $ 501
26-028-24-13-0115 .6501 - 15th Ave. So. $ 444
26-028-24-14-0096 6401 Bloomington Ave. So. $ 466
26-028-24-14-0116 6507 Bloomington Ave. So. $ 541
27-028-24-42-0068 6612 - 2nd Ave. So. $ 519
.33-028-24-42-0014 7435 Emerson Ave. So. $ 469
34-028-24-11-0079 7039 - 5th Ave. So. $ 528
34-0,28-24-12-0085 7129 - 1st Ave. So. $ 1,602
34-028-24-13-0094 7216 - 1st Ave. So. $ 1,584
34-028-24-14-0041 7320 - 5th Ave. So. ~ 1,671
Total $ 17,730
*Original Net Tax Capacity for taxes payable in 1990.
-27-
APPENDIX C
ESTIMATE OF TAX INCREMENTS
FOR
TAX INCREMENT FINANCING DISTRICT "A-1"
....... RANGE .......
A. VALUE OF NEW CONSTRUCTION Per Home Per Home
Construction Cost .(Land & Bldg) $110,000 $140,000
x Sales Ratio 92.OOg 92.00$
Estimated Market Value $101,200 5128,800
B. TAX INCREMENT VALUE
Estimated Market Value $101,200 $128,800
x Tax Capacity Ratio
(Class lA; Prop. Type R-Hmstd)
1.00$ $68,000 $ 680 $ 680
2.00$ $32,000 640 640
3.00$ Balance 36 864
New Tax Capacity $ 1,356 $ 2,184
- Original Net Tax Capacity (Avg.) - ---_(507) ----(507)
Captured Net Tax Capacity $ 849 $ 1,677
x Tax Capacity Rate (1990) 102.964$ 102.964
Annual Tax Increment $ 874 S 1,729
x 19 Homes $ 16,609 $ 32,807
C. ESTIMATE -0F NET AD VALOREM PROPERTY TAXES
Estimated Market Value $101,200 $128,800
x Tax Capacity Ratio
(Class lA; Prop. Type R-Hmstd)
1.00$ $68,000 $ 680 $ 680
2.00$ $32,000 $ 640 $ 640
3.00$ Balance $ 36 $ 864
New Tax Capacity $ 1,356 $ 2,184
x Tax Capacity Rate 102.964$ 102.964
Net Ad Valorem Taxes (per home) $ 1,396 $ 2,249
x 19 Homes $ 26,528 $ 42,726
-28-
APPENDIX D
BUDGET
TAX INCREMENT FINANCING DISTRICT "A-1"
Property Acquisition (Incl. Appraisals) $ 1,009,393
Demolition/Site Clearance $ 114,950
Legal Expenses $ 16,326
TOTAL GROSS EXPENDITURE $ 1,140,669
-29-
APPENDIX E
ESTIMATE OF IMPACTS ON OTIiER
TAXING JURISDICTIONS
TAX INCREMENT FINANCING DISTRICT "A-1"
The impact of the use of tax increment tax dollars for
project costs is estimated in Table I for each taxing
jurisdiction. This estimate is based on development activities
discussed in .this plan. The figures do not include possible tax
increments derived from changes in tax capacity rates, tax
capacity ratios, or inflation factors.
TABLE I
TIF DIST. TIF DIST.
MOST RECENT ORIGINAL WITHIN
TAX CAPACITY NET TAX TAXING
(TAXES 1990) CAPACITY JURISDICTION
TAXING JURISDICTION
City of Richfield S 23,421,750 $ 17,730 0.0757$ ~'
Hennepin County 1,034,463,652 17,730 0.0017$
School Distr. ##280 33,115,397. 17,730 0.0535$
Vo-Tech. School 661,852,490 17,730 0.0027$
Water Shed #3 270,526,740 17,730 0.0066$
Miscellaneous:
Met Council* 51,034,298,323 $ 17,730 0.0017$
Regional Transit Bd. 1,034,298,323 17,730 0.0017$
Mosquito Control .1,011,958;,476 17,730 0.0018$
Hennepin Parks 704,425,509 17,730- 0.0025$
Regional Railroad 1,034,463,652 17,730 0.0017$
Park Museum 1,034,463,652 17,730 0.0017$
*Portion within Hennepin County only.
Considering all of .the taxing jurisdictions, it can be seen
from Table I above that the city, school, and county districts
will retain 99$ of each respective district available for normal
growth of tax base or valuation.
Applying the percentage of the total tax capacity rate
(taxes payable in 1990) levied by each taxing jurisdiction to the
projected captured tax capacity resulting from the new program
-30-
reveals the annual use of tax dollars for project costs as it
affects each taxing jurisdiction. Based on the analysis in
Appendix C, Estimate of Tax Increment, Table II represents the
amount of increment which is attributed to each taxing body.
TABLE II
..............RANGE MINIMUM...............
$ TAX TAX INCREMENT
TAX CAPACITY CAPACITY TO WITHIN TAXING
RATE TOTAL RATE JURISDICTION
TAXING JURISDICTION
City of Richfield 20.556$ 20.0$ S 3,316
Hennepin County 27.916 27.1 4,503
School Distr. #280 47.638 46.2 7,685
Vo-Tech. School 1.103 1.1 178
Water Shed #3 0.120 0.1 19
Miscellaneous** 5.631 5.5 908
Total 102.964$ 100.0$ $16,609
..............RANGE MAXIMUM...............
$ TAX TAX INCREMENT
TAX CAPACITY CAPACITY TO WITHIN TAXING
RATE TOTAL RATE JURISDICTION
TAXING JURISDICTION
City of Richfield 20.556$ 20.0$ $ 6,550
Hennepin County 27.916 27.1 8,895
School Distr. #280 47.638 46.2 15,179
Vo-Tech. School 1.103 1.1 351
water Shed #3 0.120 0.1 38
Miscellaneous** 5.631 5.5 1,794
Total 102.964$ 100.0$ 532,807
The tax increments derived from prospective development in
the tax increment district would not be available to any of the
taxing jurisdictions were it not for public intervention by the
HRA. The increase in tax capacity value due to development will
be delayed for application to the tax capacity rate levy for the
duration of the tax increment district. This new tax capacity
value could eventually permit a levy decrease. If it could be
assumed that the captured tax capacity was available for each
taxing jurisdiction, the use of tax dollars for project costs
-31-
represented as tax increments may be determined. This
determination is .facilitated by estimating how much the levy for
property outside of the tax increment district would have to be
adjusted to .compensate for the temporary ..use of new development
tax dollars in each taxing jurisdiction.
Table III represents the additional tax capacity rate that
would be required to be levied by each taxing jurisdiction to
compensate for the use of the project's tax increment tax dollars
for project costs.
...... ............... ......................... .........
TABLE III
............ .MINIMUM IMPACT..............
ADJUSTED ADJUSTED TAX INCREMENT
TAX CAPACITY TAX CAPACITY WITHIN TAXING
VALUE* RATE JURISDICTION
TAXING JURISDICTION
City of Richfield $ 23,404,020 0.142 $ 3,316
Hennepin County 1,034,445,922 0.004 4,503.
School Distr. #280 33,097.,667 0.232 7,685
Vo-Tech. School 661,834,760 0.000 178
Water Shed #3 270,509,010 0.000 19
Miscellaneous** 1,034,445,922 0.0.01 908
..............'MAXIMUM IMPACT....... ......
ADJUSTED ADJUSTED TAX INCREMENT
TAX CAPACITY TAX CAPACITY WITHIN TAXING
VALUE* RATE JURISDICTION
TAXING JURISDICTION
City of Richfield $ 23,404,020 0.280 $ 6,550
Hennepin County. 1,034,445,922 0.009 8,895
School Distr. #280 33,097,667 0.459 15,179
Vo-Tech. School 661,834,760 0.001 35.1
Water Shed #3 270,509,010 0.000 38
Miscellaneous** 1,034,445,922 0.002 1,794
*Tax increment. distri ct .tax capacity value subtracted from
taxing jurisdiction tax capacity.
**Miscellaneous value based on Hennepin County tax capacity.
-32-
The Housing and Redevelopment Authority
in and for
The City of Richfield, Minnesota
Redevelopment Plan
for
Redevelopment Project Area "B"
and
Tax Increment Financing Plan
for
Tax Increment Redevelopment District "B-1 "
of the
Expanded New Home -Scattered Site
Housing Program
Dated: July 16, 1990
•
r~
U
TABLE OF CONTENTS
Part 1.
Redevelopment Plan
for
Redevelopment Project Area "B"
A. Statement of Public Purpose
B. Statutory Authority
C. Description of Redevelopment Project Area.
D. Statement of Goals and Objectives
E. Development Activities and Agreements
F. Proposed Land Use
G. Acquisition and Relocation Activities
H. Environmental Considerations
I. Redevelopment Plan Modification.
J. Administration of Redevelopment Project
Part ll.
Tax Increment Financing Plan
for
Tax Increment Redevelopment District "B-1 "
PAGE
33
33
34
35
36
38
38
39
39
39
A. Statutory Authority ~ 41
B. Statement of Objectives 41
C. Development Program 41
D. Description of Property in the
Tax Increment Financing District 42
E. Classification of the Tax Increment
Financing District 42
F. Parcels In Acquisition 44
G. Estimate of Costs 44
H. Estimated Amount of Obligated Funds. 44
(iii)
I. Sources of Revenue 44
J. Original Tax Capacity 45
K. Estimated Captured Tax Capacity 45
L. Duration of the District 45
M. Estimated Impact on Other .Taxing Jurisdictions. 45
N. Modifications of the Tax Increment.
Financing District 46
0. Limitation on Administrative Expenses 46
P. Limitation on Duration of Tax Increment
Financing Districts 46
Q. Limitation on Qualification of Property in
Increment District not Subject to .Improvement.. 46
R. Limitation of the Use of Tax Increment 47
S. Notification of Prior Planned Improvements 47
T. Excess Tax Increments 48
U. Restrictions on Pooling; Five-Year Limit. 48
V. Assessment Agreements 50
W. ~ Administration of the Tax Increment Financing District
and Maintenance of the Tax Increment Account 50
X. Annual Disclosure Requirements. 51
Y. Assumptions 51
Z. Municipal Findings 51
Appendix A: Map:. Redevelopment Project Area."B". .~ 57
Appendix B: Property in the Tax Increment
Redevelopment District "B-1" 5g
Appendix C: Estimate of Tax Increments . 60
Appendix D: Tax Increment Financing Budget. 61
Appendix E: Estimate of Impacts on Other
Taxing Jurisdictions 62
•
(iv)
Part 1.
Redevelopment Plan
for
Redevelopment Project Area "B"
A. Statement of Public Purpose
It is found that there is not in this city a sufficient
supply of adequate safe and sanitary dwelling accommodations;
that in certain areas thereof there exist substandard conditions,
unsafe and unsanitary housing and buildings and structures used
or intended to be used for living; which by reason of
sociological and technological changes, dilapidation,
obsolescence, overcrowding, and faulty arrangement or design of
,building and improvements, lack of public facilities,
ventilation, light and sanitary facilities, or deleterious land
use, or obsolete layout, or any combination of these and other
factors are injurious to the health, safety, morals and welfare
of the citizens of this state; cause an increase and spread of
crime, juvenile delinquency and disease, inflict blight upon the
economic value of large areas; threaten the source of public
revenues while decentralizing communities to areas improperly
planned and not related to public facilities; and require many
citizens to occupy unsafe, unsanitary and overcrowded dwellings.
Therefore, in order to respond to public interest and protect
the overall economic stability of the housing area, redevlopment
of neighborhoods is required to create an economic environment
which fosters the growth of a healthy residential base and
encourages private enterprise to engage in redevelopment and new
construction to be implemented in accordance with a comprehensive
community plan. The Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota (HRA) and the City Council
of the City of Richfield, Minnesota (City) have determined that
public intervention is necessary in Redevelopment Project Area
"A" (Project Area "B") of the Expanded New Home - Scattered Site
Housing Program (Housing Program) in order to achieve goals and
objectives for the-area.
B. Statutory Authority
The statutory authority for the undertaking of a
redevelopment project- in Project Area "B" and the activities
proposed in the redevelopment plan relating thereto is conferred
upon the HRA pursuant to and in accordance with the Housing and
Redevelopment Authorities Act, Minn. Stat., Sec. 469.001 to
469.047, inclusive, as amended. Specifically, Minn. Stat., Sec.
469.027 establishes the requirements for redevelopment plan
preparation by an HRA prior to undertaking property acquisition,
redevelopment, development and other related improvements.
-33-
C. Description of the Redevelopment Project Area
In order to guide development and redevelopment in Project
Area "B", the HRA has created this redevelopment plan. Pursuant
to Minn. Stat., Sec. 469.002, subd. 12, the proposed project
meets. the definition of a redevelopment project, defined in Minn.
Stat., Sec. 469.002, subd. 14, and will henceforth, be referred
to as the redevelopment project.. The boundary for Project Area
"B" encompasses all that real property within an area described
as follows:
Beginning at the intersection of the southerly right-of-way
dine of State Highway, No. 62 and the easterly right-of-way
line of Oliver Avenue South, thence in a line.-easterly more
or less, along said southerly right-of-way line to its
intersection with the westerly right-of-way line of Lyndale
Avenue South. Thence, southerly along said westerly right-
of-way line to its intersection with the southerly right-
of-way line of West. 63rd Street. Thence, westerly along
said southerly-right-of-way line to .its. intersection with
the westerly right-of-way line of Aldrich Avenue South.
Thence, southerly along said westerly right-of-way line to
it intersect-ion with the southerly property line of Lot 4,
Block, 2, Ray`s Lynnhurst Second Addition. Thence,
westerly along said southerly property line, as extended to
its intersection with the easterly property line of Lot 9,
Block 2, Ray's Lynnhurst Second Addition. Thence,
southerly along. said. easterly property line, as extended,
to its intersection. with the southerly property line of Lot
5, Block 2, Ray's .Lynnhurst Second Addition. Thence,
westerly along said southerly property line, as extended,
to its intersection with the southerly right-of-way line of
Mildred Drive. Thence, westerly more or less., along said
southerly right-of-way line to its intersection with the
easterly right-of-way line of Emerson Avenue South.
Thence, southerly along said easterly right-of-way line to
its intersection. with the northerly .property line of Lot A,
Silverwood Second Addition. Thence, easterly. along. said
northerly property line, as extended,. to its intersection
with the easterly property line of Lot A, Silverwood Second
Addition. Thence, southerly along said easterly property
line, as extended, tots intersection with the southerly
right-of-way. line of West 66th Street. Thence, westerly .
along said southerly right-of-way line to its intersection
with the westerly right-of-way line of Humboldt Avenue
South.- Thence, southerly along-said westerly right-of-way
line to its intersection with the northerly right-of-way
line of West 69th Street. Thence, westerly along said
northerly right-of-way line. to-its intersection with the
westerly right-of-way line of Irving Avenue South. Thence,
southerly along said westerly. right-of-way line to its.
intersection with the southerly .right-of-way line of West
72nd Street. Thence, easterly along said southerly right-
of-way line to its intersection with the westerly right-of-
-34-
way line of Humboldt Avenue South. Thence, southerly along
said westerly.right-of-way line to its intersection with
the northerly right-of-way line of West 73rd Street.
Thence, westerly along said northerly right-of-way line to
its intersection with the westerly right-of-way line of
Penn Avenue South. Thence, southerly along said westerly
right-of-way line to its intersection with the northerly
right-of-way line of West 74th Street. Thence, westerly
along said northerly right-of-way line to its intersection
with the westerly right-of-way line of Sheridan Avenue
South. Thence, southerly along said westerly right-of-way
line to its intersection with the northerly right-of-way
line of West 76th Street. Thence, westerly along said
northerly right-of-way line to its intersection with the
easterly right-of-way line of Xerxes Avenue South. Thence,
northerly along said easterly right-of-way line to its
intersection with the southerly right-of-way line of West
66th Street. Thence, easterly along said southerly right-
of-way line to its intersection with the easterly right-of-
way line of Russell Avenue South. Thence, southerly along
said easterly right-of-way line to its intersection with
the northerly property line of Lot 23, Block 2, Tingdale
Brothers Lincoln Hills. Thence, easterly along said
northerly property line, as extended, to its intersection
with the easterly property line of Lot 23, Block 2,
Tingdale Brothers Lincoln Hills. Thence, southerly along
said easterly property line, as extended, to it
intersection with the southerly right-of-way line of West
67th Street. Thence, easterly along said southerly right-
of-way line to its intersection with the easterly property
line of Lot 24, Block 16, Tingdale Brothers Lincoln Hills.
Thence, southerly along said easterly property line, as
extended, to its intersection with the northerly right-of-
way line of West 69th Street. Thence, easterly along said
northerly right-of-way line to its intersection with the
easterly right-of-way line of Penn Avenue South. Thence,
northerly along said easterly right-of-way line to its
intersection with the southerly right-of-way line of West
68th Street. Thence, easterly along said southerly right-
of-way line to its intersection with the easterly right-of-
way line of Oliver Avenue South. Thence, northerly more of
less, along said easterly right-of-way line, as extended,
to the point of beginning.
(Also refer to Appendix A, Map: Project Area "B".)
D. Statement of Goals and Objectives
The HRA determines that it is necessary, desirable, and in
the public interest to undertake a redevelopment project in the
City pursuant to the provisions of Minn. Stat., Chapter 469, as
amended. The HRA determines that the funding of the necessary
activities and improvements in the redevelopment project area
shall be accomplished through the use of tax increment financing
and other revenue sources available to the HRA and City.
-35-
The following goals and objectives are intended to serve as a
basis for guiding activities in the redevelopment project area:.
1. To develop s rategies to encourage development and
redevelopment of single family homes.
2. To maintain a positive. environment within the residential
community..
3. To enrich the quality of life for residents through
planning.
4. To recognize the needs of all segments of the populace
through diversity in housing stock which is a major
determinant of the living environment.
5. To achieve a high. level of design quality to enhance the
physical environment.
6. To achieve a balanced variety of housing stock
appropriate to the market area.
7. To enhance the residential tax base of the community.
8. To protect the surrounding residences from the adverse
effects of dilapidation and deterioration..
9. To eliminate unsightly, blighting, deteriorated, and
substandard structures.'
l0. To provide an expanded range of housing opportunities of
sufficient quality and size through development,
redevelopment and new consttruction.
11. To provide maximum opportunity, consistent with the needs
of the city for development by private enterprise.
12. To coordinate elements of the City's Comprehensive .Plan
with these project objectives.
E. Development Activities and Agreements
The objectives of this redevelopment plan will be
accomplished pursuant to the authority granted to the HRA by .the
Housing and Redevelopment Authorities Act, Minn. Stat., Sec a
469.001, et seer.: The. following activities are appropriate for
the area.
Description of Anticipated Public Development Activities
The anticipated public development activities in the
redevelopment project area to be undertaken by the HRA and City
-36-
in order to support the private development activities include:
1. Property acquisition;.
2. On-site clearance;
3. On-site improvements;
4. Remedial site environmental activities; and
5. Adjacent public improvements and utilities which service
site.
Description of Anticipated Private Development Activities
The private development activities within the project area
which are anticipated to occur include:
1. Property acquisition;
2. On-site clearance;
3. On-site improvements;
4. New construction;
5. Remedial site environmental activities; and
6. Adjacent public improvements and utilities which service
site.
Any and all proposals for development and redevelopment will
be reviewed by the HRA and City, when appropriate, to determine
conformance with the redevelopment plan and applicable municipal
ordinances and codes. Property acquired by the HRA will be
subject to a contract for sale to 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, creed, or national origin on the sale, lease,
transfer, or occupancy of the property purchased from the
HRA.
-37-
F. Proposed Land Use
The current land uses in the redevelopment project area
include the following:
- Single family residential;.
- Apartment;
- Duplex;
- Commercial;
- Parks;
- Vacant; and
- Quasi-public{e.g. churches, cemetery, nursing homes,
private schools, and service organizations.).
New uses will be restricted to single family residential.
G. Acquisition and Relocation Activities
1. Acquisition
As a means of comprehensively formulating an expanded New.
Home Program- HRA staff recently undertook the following
tasks to identify property for. acquisition:
a. Analysis of residential property tax records with
estimated property values less than or equal to
$55,000;
b. Survey residential property owners to gauge interest
in the new program and identify. potential sellers and
time frame for voluntary acquisition;
c. Evaluation of survey results. including identification
of~sellers indicating desire for immediate program
participation and .voluntary sale of property; and.
d. Evaluation of properties for program eligibility.
The following property has been identified for
acquisition for Cycle I of the program:
PID NUMBER ADDRESS
28-028-24-11-0041 6300 Aldrich Ave. So.
28-028-24-11-0067 6315 Dupont Ave. So.
28-028-24-12-0046 6321 Humboldt Ave. So.
28-028-24-22-0079 6313 Morgan Ave. So.
28-028.-24-24-0046 6424 James Ave. So.
28-028-24-34-0052. 6813 Logan Ave. So.
-38-
33-028-24-21-0078 7145 James Ave. So.
33-028-24-24-0071 7210 James Ave. So.
2. Relocation
The HRA accepts as binding its obligations under
provisions of federal and state law (Minn. Stat., Sec. 117.50
through 117.56) for relocation.
H. Environmental Considerations
Generally, the redevelopment project area is developed. All
proposed public and private development resulting from this plan
will be evaluated against existing environmental regulations.
I. Redevelopment Plan Modification
All redevelopment plan modifications will be processed in
accordance with Minn. Stat., Sec. 469.029, subd. 6.
J. Administration of Redevelopment Project
The redevelopment project and related housing program will be
administered by the Richfield Housing and Redevelopment
Authority.
-39-
(Intentionally Left Blank)
•
~~.J
-40-
Part II.
Tax Increment Financing Plan
for
Tax Increment Redevelopment District "B-1"
A. Statutory Authority
The statutory authority for the undertaking of a tax
increment financing district (TIF District "B-1") in
Redevelopment Project Area "B" (Project Area "B") for the
Expanded New Home - Scattered Site Housing Program (Housing
Program) and the activities proposed in the tax increment plan
relating thereto is conferred upon the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (HRA),
pursuant to and in accordance with the Tax Increment Financing
Act, Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended.
B. Statement of Objectives
The HRA and the City seek to achieve the goals and objectives
set forth in Part I of the Redevelopment Plan.
C. Development Program
1. Description of Development Activities
On January 16, 1990,. the HRA adopted a motion directing
staff to proceed with the formulation of an expanded New Home
Program. In order to gauge interest in the new program and
initially identify residential property for program
participation, the following tasks were undertaken:
a. Analysis of residential property tax records with
estimated property values less than or equal to
$55,000;
b. Survey residential property owners to gauge interest
in the new program and identify potential sellers and
time frame for voluntary acquisition;
c. Evaluation of survey results including identification
of sellers indicating desire for immediate program
participation and voluntary sale of property; and
d. Evaluation of properties for program eligibility.
A comprehensive, integrated approach for acquisition,
site clearance, and new construction has been formulated and
will be provided through program guidelines. The HRA will
assist prospective developers with development,
redevelopment, new construction, and other related activities
within the context of this Plan, the Redevelopment Plan and
other related guidelines.
-41-
2. Development Activities Covered by Contract
Currently,. there are no development: contracts.
3. Other Development Not Under Contract Reasonably Expected
to Occur in the Project.
Proposals from prospective developers will be required to
be submitted to the HRA as part of the review process. The
following activities may be expected to occur:
1. Property Acquisition;
2. On-site clearance;
3. On-site improvements.;
4. New. construction;
5. Remedial site environmental activities; and
6. Adjacent public .improvements and utilities which.
service .site.
For Cycle I of the Housing Program, a total of 27
properties have been identified for program participation and
acquisition. Nineteen of the properties are located within
Redevelopment Project Area "A" while the remaining eight are
within Redevelopment Project Area "B". (Refer to Appendix A
for map of Redevelopment Project Areas.) Redevelopment
Project Area B contains two properties with double lots.-With
..property subdivisions, two additional homes will be
constructed. Initial construction for Cycle I is anticipated
to begin toward the end of the last quarter of calendar year
1990, .with construction for .each home to run approximately
120 days. Timing of construction is contingent upon
favorable market conditions, reasonable time period for
processing applications and availability of funding revenue.
D. Description of Property in the Tax Increment Financing
District
Property located within TIF District "B-l" is identified in
Appendix B.
E. Classification of the Tax Increment Financing. District
The Richfield HRA and City Council, in determining the need
for a tax increment financing district in accordance with Minn.
Stat., Sec. 469.174 to 469.179, inclusive, as amended,. .find that
the district to be established within Project Area "B" is a
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redevelopment tax increment financing district as defined in
Minn. Stat., Sec. 469.174, subd. 10:
It has been ascertained that parcels consisting of 70
percent of the area of the district are occupied by
buildings, streets, utilities or other improvements and'
more than 50 percent of the buildings, not including
outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance.
""Structurally substandard" shall mean containing
defects in structural elements or a combination of
deficiencies in essential utilities and facilities,
light and ventilation, fire protection including
adequate egress, layout and condition of interior
partitions, or similar factors, which defects or
deficiencies are of sufficient total significance to
,justify substantial renovation or clearance."
"A building is not structurally substandard if it is in
compliance with the building code applicable to new
buildings or could be modified to satisfy the building
code at a cost of less than 15 percent of the cost of
constructing a new structure of the same square footage
and type on the site. The municipality may find that a
building is not disqualified as structurally
substandard under the preceding sentence on the basis
of reasonably available evidence, such as the size,
type, and age of the building, the average cost of
plumbing, electrical, or structural repairs, or other
similar reliable evidence. If the evidence supports a
reasonable conclusion that the building is not
disqualified as structurally substandard, the
municipality may make such a determination without an
interior inspection or an independent expert appraisal
of the cost of repair and rehabilitation of the
building."
Since the tax increment parcels within the scattered site
program are non-contiguous, each parcel has been examined by
staff against the statutory definitions of structurally
substandard and other blight definitions. Each structure has
qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the
tax increment financing district meets the requirements of a
redevelopment tax increment financing district. A detailed
account of property examination for eligibility are enumerated
within a document entitled "Expanded New Home - Scattered Site
Housing Program: Blight Qualification Survey" which will be on
file at City Hall for the duration of the tax increment
district's life.
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F. Parcels in Acquisition
The following property has: been identified for acquisition:
PIN NUMBER
28-028-24-11-0041
28-028-24-11-0067
28-028-24-12-0046
28-028-24-22-.0079
28-028-24-24-0046
28-028-24-34-0052
33-028-24-21-0078
ADDRESS
6300 Aldrich Ave. So.
6315 Dupont. Ave. So.
6321 Humboldt Ave. So.
6313 Morgan Ave. So.
6424 James Ave. So.
6813 Logan Ave. So.
7145 James Ave. So.
33-028-24-24-0071 7210 James Ave. So.
The tax increment district budget includes acquisition costs
for subsidy purposes which will be offered to developers as
development: incentives.
G. Estimate of Costs
The estimate of public costs associated with the tax
increment district are outlined in the budget listed in Appendix
D.
H. Estimated_Amount of Obligated Funds
At the current time, approximately $1 million is available to
implement this program. Repayment of these funds will be through
the use of tax increment financing and other sources of revenue
'available to the HRA and City.
An .estimate of the amount of bonded indebtedness for
redevelopment is expected to be $0. The term of the issues is 0
years including 0 years. of capitalized interest with an
anticipated taxable interest rate of 0$. The amount of
capitalized interest is estimated to be $0.
I. Sources of Revenue
The primary source of revenue to be used to finance public
costs associated with proposed developments in-the redevelopment
project area is tax increment. In addition to the tax increment
revenue, other sources of revenue potentially available to the
HRA and City may be utilized.
r
r
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J. Original Tax Capacity
Pursuant to Minn. Stat., Sec. 469.175, subd. 1 and Sec.
469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF
District "B-1" is based on the January 2, .1990 assessed value
placed on the property by the county assessor. The OTC for the
district is $6,415. (See Appendix B, Property Located in Tax
Increment Financing District "B-1".) Each year the office of the
county auditor will measure the amount of increase or decrease in
the total net tax capacity of the tax .increment district to
calculate the tax increment payable to the redevelopment district
fund. In any year in which there is an increase in total net tax
capacity in the tax increment district above the original net tax
capacity, a tax increment will be payable. In any year in which
the total net tax capacity in the tax increment district declines
below the original net tax capacity, no tax capacity will be
captured and no tax increment will be payable.
The county auditor shall certify in each year after the date
the original net tax capacity was certified, the amount the OTC
has increased or decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of
the district; or
3. Change due to stipulations, adjustments, negotiated or
court-ordered abatements.
K. Estimated Captured Tax Capacity
Pursuant to Minn. Stat., Sec. 469.175, subd. 1 and Minn.
Stat., Sec. 469.177, subd. 2, the estimated captured net tax
capacity (CTC) of the tax increment district is within a range of
$931 to $1,759 per home. The total CTC for ten new homes within
the project area ranges from $9,310 to $17,590. As a result of
the improvements to be constructed, it is expected that the
estimated captured .net tax capacity will be available for the
housing program. It is also anticipated that this amount will be
captured not more than 25 years. (See Appendix C, Estimate of
Tax Increments).
L. Duration of the District
Pursuant to Minn. Stat., Sect. 469.176, subd. 1, the maximum
duration of a redevelopment tax increment district is 25 years.
The HRA elects to capture 100$ of the tax increments for the
duration of the district.
M. Estimated Impact on Other Taxing Jurisdictions
.Refer to Appendix E, Estimate of Impacts on Other Taxing
Jurisdictions.
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N. Modifications of the Tax Increment Financing District.
All. tax increment plan modifications will be processed in
accordance with Minn. Stat., Sec. 469.175, subd. 4.
The modifications pertaining to the necessary processing
include any reduction or; enlargement of the geographic area of
the. project or tax increment financing district; increase in
amount of bonded indebtedness to be incurred, including a
determination of capitalized interest on debt if that
determination .was not a part of the original plan, or to increase
or decrease the amount of interest on the. debt to be capitalized;
increase in the portion of the captured tax capacity to be
retained by the HRA; increase in total estimated tax increment
expenditures or designation of additional property to be acquired
by the HRA shall be approved upon the notice and after the
discussion, public hearing and findings required for approval of
the original plan. The geographic area of a tax increment
district may be reduced, but shall not be enlarged after five
years following the date of certification of the original tax
capacity by the County Auditor.
O. Limitation on Administrative Expenses
In accordance with Minn. Stat., Sec. 469.174, subd. 14, and
Minn. Stat., Sec. 469.176, subd. 3, for districts for which
certification was requested after June 30, 1982, no tax increment
shall be used to pay any .administrative expenses for a project
.which exceed ten percent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures for the project, whichever is less.
P. Limitation on Duration of Tax Increment Financing Districts
Pursuant to Minn. Stat., Seca 469.176, subd. 1, the HRA must
.issue bonds, or acquire property, or construct or cause public
improvements_to be constructed within three years of the date of
.certification of the tax increment district by the county
auditor.
Q. Limitation on Qualification of Property in Tax Increment
District Not Subject to Improvement
Pursuant to :Minn. Stat., Sec. 469.176, subdivision 6, "if,
after four years from the date of certification of the original
net tax capacity of the tax increment financing district..., no
demolition, rehabilitation or renovation of property or other
site preparation, including qualified improvement of a street
adjacent to a parcel but not installation of utility service
including sewer or water systems, has. been commenced on a parcel
located within a tax increment financing district by the HRA or
by the owner of-the parcel in accordance with the tax increment
financing plan, no additional tax increment may be taken from
that parcel, and-the original net tax capacity of that parcel
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shall be excluded from the original net tax capacity of the tax
increment financing district. If the HRA or the owner of the
parcel subsequently commences demolition, rehabilitation or
renovation or other site preparation on that parcel including
qualified improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the HRA shall
certify to the county auditor that the activity has commenced,
and the county auditor shall certify the net tax capacity thereof
most recently certified by the commissioner of revenue and add it
to the original net tax capacity of the tax increment financing
district."
R. Limitation on the Use of Tax Increment
All revenues derived from tax increment shall be used in
accordance with the tax increment financing plan. The revenues
shall be used to finance or otherwise pay public redevelopment
costs pursuant to Minn.. Stat., 469.001 to 469.047, inclusive, as
amended. These revenues shall not be used to circumvent existing
levy limit law. No revenues derived from tax increment shall be
used for the construction or renovation of a municipally owned
building used. primarily and regularly for conducting the business
of the municipality. This provision shall not prohibit the use
of revenues derived from tax increments for the construction or
renovation of a parking structure, a commons area used as a
public park or a facility used for social, recreational or
conference purposes and not primarily for conducting the business
of the municipality.
Pursuant to Minn. Stat., Sec. 469.176, subd. 4j, at least 90
percent of the revenues derived from tax increments from a
redevelopment district must be used to finance the cost of
correcting conditions that allow designation of a redevelopment
district under section 469.174. These costs include acquiring
properties containing structurally substandard buildings or
improvements, acquiring adjacent parcels necessary to provide a
site of sufficient size to permit development, demolition of
structures, clearing of the land, and installation of utilities,
roads., sidewalks, and parking facilities for the site. The
allocated administrative expenses of the authority may be
included in the qualifying costs.
S. Notification of Prior Planned Improvements
Pursuant to Minn. Stat., Sec. 469.177, subd. 4, the HRA will
review and search property files for properties to be included in
the tax increment district and to identify those properties for
which building permits have been issued during the 18 months
immediately preceding approval of the tax increment financing
plan by the City.
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T. Excess Tax Increments
Pursuant to Minn. Stat. .Sec. 469.176 S
ubd. 2, in any year
in which the tax increment exceeds the amount necessary to pay
the costs authorized by the: tax increment plan, including the
amount necessary to cancel any tax levy as provided in Minn.
Stat., Sec. 475.61, subd. 3, the HRA shall use the excess amount
to:
1. Prepay the outstanding bonds;
2. Discharge the pledge of tax increment therefor;.
3. Pay into an escrow account dedicated to the payment of
such bond;
4. Repay any loans including interest. on these loans; or
5. Return the excess to the county auditor for
redistribution to the respective taxing jurisdictions in
proportion to their tax capacity rates.
The amounts distributed to a city or county must be
deducted from the levy limits of the governmental unit for
the following year. In calculating the levy limit base.
.for later years, the amount deducted must be treated as a
local government air payment.
For the purpose of this tax increment financing plan, excess
.tax increment means that increment received in any year which is
in addition to the amount needed to satisfy .the HRA's current
financial obligations or commitments, as specified in the tax
increment financing budget listed in Appendix D, or which is in
addition to that which is placed in a separate account for `the
purpose of accumulating funds needed to satisfy those financial
obligations or commitments in the future..
.U. Restrictions on Pooling; Five-Year Limit.
In accordance with. Minn. Stat., Sec. 469..1763, the following
terms have the meanings given:
"Activities "means acquisition of property, clearing land,
site preparation, soils correction, removal of hazardous waster
or pollution, installation of utilities, construction of public
or private improvements, and other similar activities, but only
to_the extent that tax increment revenues may be spent for such
purposes under other law. .Activities do not include allocated.
administrative expenses, but do include engineering,
architectural, and similar costs of the improvements in the.
district.
"Third party" means an entity other than (1) the person
.receiving the benefit of assistance financed with tax increments,
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or (2) the municipality or the development authority or other
person substantially under-the control of the municipality.
Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect
to expenditures outside the district:
(a) For each tax increment financing district, an amount
equal to at least 75 percent of the revenue derived from tax
increments paid by properties in the district must be expended on
activities in the district or to pay bonds, to the extent that
the proceeds of the bonds were used to finance activities in the
district or to pay, or secure payment of, debt service on credit
enhanced bonds. Not more than 25 percent of the revenue derived
from tax increments paid by properties in the district may be
expended, through a development fund or otherwise, on activities
outside of'the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on
credit enhanced bonds. The revenue derived from tax increments
for the district that are expended on costs under section
469..176, subdivision 4h, paragraph (b), may be deducted first
before calculating the percentages that must be expended within
and without the district.
Pursuant to Minn. $tat., Sec. 469.173, subd. 3 with respect
to the five-year rule:
(a) Revenues derived from tax increments are considered to
have been expended on an activity within the district under
subdivision 2 only if one of the following occurs:
(1) before or within five years after
certification of the district, the revenues
are actually paid to a third party with
respect to the activity;
(2) bonds, the proceeds of which must be used
to finance the activity, are issued and sold
to a third party before or within five years
after certification and the revenues are spent
to repay the bonds;
(3) binding contracts with a third party are
entered into for performance of the activity
before or within five years after
certification of the district and the revenues
are spent under the contractual obligation; or
(4) costs with respect to the activity are
paid before or within five years after
certification of the district and the revenues
are spent to reimburse a party for payment of
the costs.
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(b) For purposes of this subdivision, bonds include subsequent •
refunding bonds if one of two tests is met: (1) the proceeds of
the original refunded bonds were spent on activities within five
years after the district was certified or (2) the original
refunded bonds are issued within five years after the district
was certified and the proceeds are expended on activities within
a reasonable temporary .period within the meaning of the use of
that term under section 148(c)(1) of the Internal Revenue Code.
Pursuant to Minn. Stat., Sec. 469.173, subd. 4 with respect
to use of revenues for decertification:
Beginning with the sixth year following certification of the
.district, 75 percent of the revenues derived from tax .increments
paid by properties in the district that remain after the
expenditures permitted under subdivision 3 must be used only to
pay outstanding bonds, as defined in subdivision 3, paragraph
(a), clause (2), and paragraph (b) or contracts,. as defined in
subdivision 3, paragraph (a), clauses (3) and (4). When the
outstanding bonds have been defeased and when sufficient money
has been set aside to pay contractual obligations as defined in
subdivision 3, paragraph (a), clauses (3) and (4), the district
must be decertified. and the pledge of tax increment discharged.
V. Assessment Agreements
Pursuant to Minn. Stat., Sec. 469.177, subd. 8, the HRA may
enter into an agreement in recordable form with the developer of
property within the tax increment district which establishes a
minimum market value of the land and completed improvements for
the duration of the tax increment district. 'The assessment
agreement shall be presented. to the county assessor who shall
review the plans and specifications for the improvements to be
constructed, review the market value previously assigned to the
land upon which the improvements are to be constructed and so
long as the minimum-market value .contained in the .assessment
agreement appears in the judgment of the assessor, to be a
reasonable estimate, the assessor may certify the minimum market
value. agreement.
W. Administration of the .Tax Increment District and Maintenance
of the Tax Increment Account
Administration of the tax increment district will be the
responsibility of the Richfield Housing and Redevelopment
Authority.
The tax increment received as a result of_increases in the
net tax capacity of the tax increment district will be maintained
in a special account separate from .all other HRA and. municipal
accounts and expended only upon sanctioned activities.identified
in the tax increment financing plan.
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X. Annual Disclosure Requirements
Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before
March 1 of each year, the HRA must annually report to the
commissioner of revenue the following:
1. Total principal amount of nondefeased tax .increment
financing bonds that are outstanding at the end of the
previous calendar year; and
2. Total annual amount of principal and interest payments
that are due for the current calendar year on (i) general
obligation tax increment financing bonds, and (ii) other
tax increment financing bonds.
Also in accordance with. this requirement the HRA must
annually report to the commissioner of revenue the following
amounts for the tax increment financing district:
1. Type of district;
2. Date on which the district is required to be decertified;
3. Captured net tax capacity of the district, by property
class as specified by the commissioner of revenue, for
taxes payable in the current calendar year;
4. Tax increment revenues for taxes payable in the current
calendar year;
5. Whether the tax increment financing plan or other
governing document permits increment revenues to be
expended (i) to pay bonds, the proceeds of which were or
may be expended on activities located outside of the
district, (ii) for deposit into a common fund from which
.money may be expended on activities located outside of
the district, or (iii) to otherwise finance activities
located outside of the tax increment financing district;
and
6. Any additional information that the commissioner of
revenue may require.
Y. Assumptions
It was necessary to make certain assumptions regarding
income, costs and timing of the tax increment financing district.
These assumptions are based on discussions with the HRA, City,
and County staff, and consultants.
Z. Municipal Findings
Pursuant to Minn. Stat., Sec. 469.175, subd. 3, before or at
the time of approval of the tax increment financing plan, the
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municipality shall make the following findings and shall set •
forth in writing the reasons and supporting facts for each
determination:
1. The Tax-Increment Financing District is a
redevelopment district pursuant to Minn. Stat.,
Sec. 469.174, subd. 10. It has been determined
that parcels consisting of 70 percent of the area
of the district are occupied by buildings, streets,
utilities or other improvementsand more than 50
.percent of the buildings, not including
outbuildings, are structurally substandard to a
degree requiring substantial renovation or
clearance.
Specifically, staff has examined each parcel
against the .statutory definitions of structurally
substandard and other blight definitions due to the
non-contiguous nature of the tax. increment. parcels.
Each structure has qualified under Minn. Stat.,
Sec.. .469.174, subd. 10. Thus, the tax increment
financing district meets the requirements of a
redevelopment tax increment financing district. A
detailed account of property examination for
eligibility are enumerated within a document
entitled "Expanded New Home - Scattered Site
Housing Program: Blight Qualification Survey"
which will be on file at City Hall for the duration
of the tax increment district's life..
2. The proposed activities listed in this plan, in the
opinion of the HRA, would not reasonably be
expected to occur solely through private investment
.within the reasonably foreseeable future.
Therefore, the use of tax increment financing is
deemed necessary since the proposed development
`requires certain necessary planning., .property.
assembly and other improvements without which
prospective developers could not construct the
aforementioned improvements; and without the use of
tax increments or other revenues authorized by this
plan to with the financing of the activities,
prospective developers would not proceed with
redevelopment in the redevelopment project area.
3. The tax increment financing plan conforms to the
general plan for the development of the City as a
.whole as it will result in an expanded New-Home
Program for the .development, redevelopment, new
.construction and other. related improvements of
residential homes for which there is limited
sources of .revenue available.
-52-
4. The tax increment financing plan will afford
maximum opportunity:; consistent with the sound
-needs of the City as a whole, for the development
by private enterprise as it will enable the HRA to
provide the necessary redevelopment for the
project area and City, as a whole, in a planning
manner suitable to both the public and private
sectors.
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.(Intentionally Left Blank)
•
•
~J
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APPENDICES
EXPANDED NEW HOME -SCATTERED S/TE
HOUSING PROGRAM
REDEVELOPMENT PROJECT AREA "B"
AND
TAX INCREMENT FINANCING DISTRICT "B-1 "
-55-
(Intentionally.Left Blank)
-56-
•
C,
APPENDIX A
MAP
REDEVELOPMENT PROJECT AREA "B"
-57-
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APPENDIX B
PROPERTY LOCATED IN
TAX INCREMENT FINANCING DISTRICT "B-1"
ORIGINAL NET
PIN NUMBER ADDRESS TAX CAPACITY*
28-028-24-11-0041 6300 Aldrich Ave. So. $ 518
28-028-24-11-0067 6315 Dupont Ave. So. $ 511
28-028-24-12-0046 6321 Humboldt Ave. So. $ 1,443
28-028-24-22-0079 6313 Morgan Ave. So. $ 459
28-028-24-24-0046 6424 James Ave. So. $ 524
28-028-24-34-0052 6813 Logan Ave. So. $ 666
33-028-24-21-0078 7145 James Ave. So. $ 1,800
33-028-24-24-0071 7210 James Ave. So. S 494
Total $ 6,415
*Original Net Tax Capacity for taxes payable in 1990.
-59-
APPENDIX C
ESTIMATE OF TAX INCREMENTS
FOR
TAX INCREMENT FINANCING DISTRICT "B-1"
. ...... RANGE .. .....
A. VALUE OF NEW CONSTRUCTION. Per Home Per Home
Construction Cost (Land & Bldg) $110,000 5140,000
x Sales Ratio 92.00$ 92.00$
Estimated Market Value 5101,200 5128,800
B. TAX INCREMENT.VALUE
Estimated Market Value $101,200 5128,800
x Tax Capacity Ratio
(Class lA; Prop. Type R-Hmstd)
1.00$ $b8,000 $ 680 $ 680
2,00$ $32,000 640 640
3.00$ Balance 36 864
New Tax Capacity S 1,356 S 2,184
- Original Net Tax Capacity (Avg.) (425) (425)
Captured Net Tax Capacity $ 931 $ 1,759
x Tax Capacity Rate (1990) 102.964$ 102.964$
Annual Tax Increment $ 959 S 1,811
x 10 Homes S 9,586 $ 18,111
C. ESTIMATE OF NET AD VALOREM PROPERTY TAXES
Estimated Market Value $101,200 $128,800
x Tax Capacity .Ratio
(Class lA; Prop. Type R-Hmstd)
1.00$ 568,000 $ 680 $ 680
2.00$ 532,000 $ 640 $ 640
3.00$ Balance $ 36 $ 864
New Tax Capacity $ 1,356 $ 2,.184
x Tax Capacity Rate 102.964$ 102.964$
Net Ad Valorem Taxes (per home) $ 1,396 $ 2,249
x 10 Homes $ 13,960 S 22,490
•
•
-60-
APPENDIX D
BUDGET
TAX INCREMENT .FINANCING DISTRICT "B-1"
Property Acquisition (Incl. Appraisals) $ 425,007
Demolition/Site Clearance $ 48,400
Legal Expenses $ 6,874
TOTAL GROSS EXPENDITURE $ 480,281
-61-
APPENDIX E
ESTIMATE OF IMPACTS ON OTHER
TAXING JURISDICTIONS
TAX INCREMENT FINANCING DISTRICT "B-1"
.The impact of the use of tax increment tax dollars for
project costs is estimated in Table I for-each taxing.
jurisdiction. This-estimate is based on development activities
discussed in this plan. The figures do not include possible tax
increments derived from changes in tax capacity rates, tax
capacity ratios, or inflation factors.
TABLE I
TIF DIST. TIF DIST.
MOST RECENT ORIGINAL WITHIN
.TAX CAPACITY NET TAX TAXING
(TAXES 1990) CAPACITY JURISDICTION
TAXING JURISDICTION.
City of Richfield S 23,421,750 $ 6,415 0.0274$
Hennepin County 1,034,463,652 6,.415 0.0006$
School Distr. #280.- 33,115,397 6,415 0.0194$
Vo-Tech. School 661,852,.490 6,415 0.0010$
Water Shed #3 270,526,740 6,415 0.0024$
Miscellaneous:
.Met Council* $1,034,298,323 $ 6,415 0.0006$
Regional: Transit Bd. 1,034,298,323 6,415 0.0006$
Mosquito Control 1,011,958,476 6,415 0..0006$
Hennepin Parks 704,425,509 6,415 0.0009$
Regional Railroad 1,034,4.63,652 6,415 0.0006$
Park Museum 1,034,463,.652 6,415 0.0006$
*Portion within Hennepin County only.
Considering all of the taxing jurisdictions, it can be seen
from Table I above that the city, school, and county districts
will retain 99$ of each respective district available for normal
growth of tax base or valuation.
Applying the percentage of the total tax capacity rate
(taxes payable in 1990) levied by each taxing jurisdiction to the-
projected captured tax capacity resulting from the new program
C,
-62-
reveals the annual use of tax dollars for project costs as it
affects each taxing jurisdiction. Based on the analysis. in
Appendix C, Estimate of Tax Increment, Table II represents the
amount of increment which is attributed to each taxing body.
TABLE II
......... ...RANGE MINIMUM ...............
$ TAX TAX INCREMENT
TAX CAPACITY CAPACITY TO WITHIN TAXING
RATE TOTAL RATE JURISDICTION
TAXING JURISDICTION
City of Richfield 20.556$ 20.0$ $ 1,914
Hennepin County 27.916 27.1 2,599
School Distr. #280 47.638 46.2 4,435
Vo-Tech. School 1.103 1.1 103
Water Shed #3 0.120 0.1 11
Miscellaneous** 5.631 5.5 524
Total 102.964$ 100.0$ $ 9,586
.... .........RANGE MAXIMUM...............
$ TAX TAX INCREMENT
TAX CAPACITY CAPACITY TO WITHIN TAXING
RATE TOTAL RATE JURISDICTION
TAXING JURISDICTION
City of Richfield 20.556$ 20.0$ S 3,616
Hennepin County 27.916 27.1 4,910
School Distr. #280 47.638 46.2 8,380
Vo-Tech. School 1.103 1.1 194
Water Shed #3 0.120 0.1 21
Miscellaneous** 5.631 5.5 990
Total 102.964$ 100.0$ $18,111
The tax increments derived from prospective development in
the tax increment district would not be available to any of the
taxing jurisdictions were it not for public intervention by the
HRA. The increase in tax capacity value due to development will
be delayed for application to the tax capacity rate levy for the
duration of the tax increment district. This new tax capacity
value could eventually permit a levy decrease. If it could be
assumed that the .captured tax capacity was available for each
taxing jurisdiction, the use of tax dollars for project costs
-63-
represented as tax increments may. be determined. This
determination is facilitated by estimating how much the levy for
property outside of the tax increment district would have to be
adjusted to compensate for the temporary use of new development
tax dollars in each taxing jurisdiction.
Table III represents the additional tax capacity rate that
would be required to be levied by each taxing jurisdiction to
compensate for the use of the project's tax increment tax dollars
for project costs.
TABLE III
...... ,M INIMUM IMPACT ... .....'....
ADJUSTED ADJUSTED TAX INCREMENT
TAX CAPACITY TAX CAPACITY WITHIN TAXING
VALUE* RATE JURISDICTION
TAXING JURISDICTION
City of Richfield $ 23,415,335 0.082 $ 1,914
Hennepin County. 1,034,457,237 .0.003 2,599
.School Distr. #280 33,108,982 0.134 4,435
Vo-Tech. School. 661,846,075 0.000 103
Water Shed #3 270,520,325 0.000 it
.Miscellaneous** 1,034,457,237 .. 0.001 524
TAXING JURISDICTION
L..J
..............MAXIMUM IMPACT..............
ADJUSTED ADJUSTED
TAX CAPACITY TAX CAPACITY
VALUE* RATE
TAX INCREMENT
WITHIN TAXING
.JURISDICTION
'City of Richfield $ 23,415,335 0.154 $ 3,616
Hennepin County 1,034,457,237 0.005 4,910
School Distr. #280 33,108,982 0.253 8,380
Vo-Tech. School 661,846,075 0.000 194
Water Shed #3 270,520,325 0.000 21
Miscellaneous** 1,034,457,237 0.001 990
*Tax increment distr ict tax capacity value subtracted from
taxing jurisdiction tax capacity.
**Miscellaneous value based on Hennepin County tax capacity.
•
-64-
i ~{
City of Richfield, Minnesota
Council Letter No.189
Agenda July 23, 1990
Issue Statement•
Public hearing on a preliminary plat to allow a subdivision of
the vacant lot at 7201 Penn Avenue South.
Back~c round:
Applicant John Oksness is requesting a preliminary plat in order
to subdivide the vacant parcel at 7201 Penn Avenue South into two
lots. The subdivision would allow the applicant to construct an
attached twinhome and sell each unit separately on an individual
lot.
On June 11, 1990, the City Council granted lot area and zero lot
line setback variances contingent upon the following:
• Approval of the subdivision request for this property.
• Submittal and approval of an acceptable drainage plan.
• The proposed structure be a one story rambler style
dwelling that is compatible with the character of the
neighborhood.
The property is zoned R-residence district.
Recommended Motion:
Continue this hearing to August 13, 1990 to allow the applicant
to provide an adequate drainage plan.
Basis of Recommendation:
1. The preliminary plat is consistent with the plan submitted
to and reviewed by the Council at the variance hearing on
June I1, 1990.
-2. The Planning Commission recommended denial of the plat by a
- 5-3 vote based on adverse impact to the neighborhood,
drainage problems and a twinhome being at odds with the
single family area. A number of neighbors appeared at the
hearing and voiced objections. Subsequent to the meeting,
the petitioner met with the neighboring property owners,
changed the design and location of the property and developed
a berm and Swale system to handle water on his property. At
subsequent hearings, the neighbors did not object but still
raised concerns over drainage.
3. At the variance hearing, there was substantial discussion
relating to drainage of this parcel and within the context
of the neighboring properties. Staff was instructed to
have this available at the subdivision hearing.
i~-~
4. The City Engineer's office has not approved the drainage
plan. The drainage plan does not show the height of
the berm or level of the swale on the south and east sides
of the property nor does it provide adequate information
or Engineer's opinion as to the effect of the berm and Swale
on the properties to the east and south.. The petitioners
have been notified of their deficiency.
Alt__ernative _Recommendation
1. Approve the preliminary plat subject to a condition that
the drainage plan tae approved by staff before a building
permit is issued.
2. Deny the preliminary plat if a finding of fact determines
that the proposal would have an adverse impact on the
surrounding properties.
Discussion Decision Mode:
A public hearing is scheduled at 7:00 P.M. on July 23, 1990 in
the City Council Chambers of Richfield City Hall, 6700 Portland
Avenue South.
Notice of public hearing was published in the Sun-Current and
mailed to property owners within 350 feet of the property.
Respectfu y submitted,
I
James D.~Prosser
City MaVnager
JDP:ds
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JOHN OKSNESS
~iF~CPIP710~: that. part rf tha North R reds of the SH 1/4 of the NW 1/4 of Section 3,
township 7R north, Range 9a, West of Lhe 4th Principal Meridian lying. West of Uliver- venue,
described as follows: RP.ginninu at a paint in the North line of said SW 1I4 of the 1f 114.
133.73 feet west of the West line of Oliver Avenue; thence continuing Nest pn said A North
tine to the West. line of the SW 1/4 of NW 1/4; thence Seuth alone said West line. 132" eet;
thence East parallel to the North line of said quarter-quarter 163.7 feet, more oi• less to a
point 133.7 feet IJest of the West. line of Uliver Avenue; thence North to point of be9inainy.
Except therefrom the West 33 feet and subject to Road Easement over the North 30 feet.
We hereby certify that this is a true and correct representation pt a survey of-.the
boundaries of the land aboee described and of the location of all buitd"jags, if arty, thereon
and all visible encroachments, if any, from or on said land. Dated this 2nd day
-of July 19 90 "'
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CITY OF RICHFIELD, MINNESOTA
Council Letter No. 190
Agenda July 23, 1990
Issue Statement•
Consideration of public hearing and second reading of an
ordinance amendment to incorporate into Section 416 provisions of
state law regarding the regulation of noncommercial signs in
state general election years.
Background
The Minnesota State Legislature passed the following statute
amendment during the 1990 Legislative Session:
Sec. 30.(211H.045) NONCOMMERCIAL SIGNS EXEMPTION.
"In any municipality with an ordinance that regulates the
size of noncommercial signs, notwithstanding the provisions
of that ordinance, all noncommercial signs of any size may
be posted from August 1 in a state general election year
until ten days following the state election."
This section will supersede certain provisions of Section 416 of
the Richfield City Code in state general election years.
First reading of the proposed ordinance amendment was conducted
_ at the July 9, 1990 City Council meeting. The City Council
directed the City Attorney to redraft the proposed ordinance
amendment to include the specific statute dates.
Therefore, the City Attorney has drafted the attached ordinance
amendment for incorporation into the Richfield City Code.
Recommended Motion:
Approve second reading of ordinance amendment to Chapter IV
Section 416, "Regulation of Signs", adding Section 416.13 "Effect
of State Law".
-Basis for Recommendation:
1. The Minnesota State Legislature adopted a statute which
supersedes local ordinances at certain times.
2. The City Attorney has drafted an ordinance amendment
regarding this statute for incorporation into the Richfield
City Code.
Alternative Recommendation:
1. Do not approve second reading of this ordinance amendment.
2. Ask the City Attorney to prepare a different draft ordinance
amendment.
Discussion Decision Mode:
The City Council has scheduled a public hearing and second
reading for the attached ordinance amendment at the July 23, 1990
City Council meeting.
Respec y submitted,
James Prosser
City M alter
JDP:ds
i 5-z
BILL NO. 1990
AMENDMENT TO CHAPTER IV,
SEC`T'ION 416 OF TAE RICHFIELD
CITY CODE OF 1987
THE CITY OF RICHFIELD DOES ORDAIN:
Section 416 of the Code entitled "Regulation of Signs" is hereby amended by
adding thereto the following new subsection:
416.13. Effect of State Law. Notwithstanding any provisions of
this section to the contrary, all noncommercial suns of any size
may be osted from AuPust 1 in a state general election year until
ten 10 days following the state election.
Passed by the City Council of the City of Richfield, 14innesota this 23rd day
of July, 199 0.
CITY OF RICHFIELD
B3'
Steven J. Quam - 1~4ayor
ATTEST:
Thomas P. Ferber, City Clerk
RC145-038
icy
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 191
Agenda July 23, 1990
Issue Statement:
Consideration for the -first reading approval of amendments to
gender neutralize the City Charter.
Background:
The Charter Commission is appointed to make recommendations for
changes to the City Charter. The Charter Commission recently
undertook the task of amending the Charter to delete any specific
gender .references. Their recommendation is provided to the City
Council for first reading and consideration at this meeting.
The City Attorney has incorporated the recommended changes in
ordinance form.
Recommended Motion:
Approve first reading of Charter amendment ordinance and refer
the Attorney's draft of ordinance incorporating Charter amendment
to Charter Commission for review and approval.
B_a_sis of Recommendation:
1. Charter Commission request.
2. It is appropriate to have a gender neutral City Charter.
Alternative Recommendation:
1. The City Council could elect not to approve the City Charter
amendments. This would have no legal impact upon the City.
It is appropriate symbolically to have a gender neutral
charter.
2. The Charter Commission could also request a change by
referendum.
Decision/Discussion Mode:
This matter is scheduled for first reading consideration on
July 23. Second reading would be scheduled for September 10.
Resp ully submitted,
Jam D. Prosser
City Manager
JDP:tlm
~~-l
CITY CHARTER OF RICHFIELD
CHAPTER 1
NAMES, BOUNDARIES, P0~4'ERS, AND GENERAL PROVISIONS
Sec. 1.01. Name and Boundaries. The Village of Richfield, in the County
of Hennepin, and Stage of Minnesota, shall, upon taking effect of this charter,
continue to X~e a municipal corporation, under the name and style of the City of
Ricriiield, and witty the same boundaries as now are or hereafter may be
established.
Sec. 1.02. Powers of the City. The City shall have all powers which it
may now or riereafter be possible for a municipal corporation in this Stage go
exercise in harmony with the constitutions of this State and of the United
Stages. It is the intention of this charter tYiat every power which the people
of the City might lawfully confer upon themselves, as a municipal corporation,
by specific enumeration in this charter sriall be deerned to nave been so
conferred by the provisions of this section. This charter shall be construed
lit~rallp in favor of the City, and the specific rriention of particular powers in
the Charter shall not be construed as limiting, in any way, the generality of the
power herein sought to be conferred.
Sec. 1.03 Charger and Public Act. This Charter shall be a public act and
need not be pleaded or proved in any case. It shall take effect thirty (30~
days from and afger its adoption by the vogers.
~ rte. ran
CITY CHARTER CITY OF R ICHF IELD
~~-Z
BILL NO.
AN ORDINANCB AMENDING THE CITY
CHARTER OF THB CITY OF RICHFIELD
City of Richfield Does Ordain:
The City Charter of Richfield is hereby amended in the following respects:
I. Section 2.04 is amended to read as follows:
Sec. 2.04. Incompatible Offices. No member of the Council shall be
appointed City Manager, nor shall any member hold any paid municipal office of
employment under the City; and until one year after the expiration of the
member's term as Mayor or eetrnei-ltrra~er Council Member, no former member shall
be appointed to any paid appointive office or employment under the City which
were increased during Iris the Council Member's term in office
II. Seetian 2..05 is amended to read ss follows:
Sec. 2.05. Vacancies in Council. A vacancy in the Council shall be
deemed to exist in case of the failure of any person elected thereto to qualify on or
before the date of the second regular meeting of the new Council, or by reason of
death, resignation, removal from office, removal from the City, continuous
absence from the City for more than three months, or conviction of a felony of any
such person. whether before or after Iris qualification, or by reason of the failure of
any counciltrra~n member without good cause to perform any of the duties of the
membership in the Council for a period of three months. In each such case the
Council shall, by resolution, declare a vacancy to exist and shall forthwith appoint
an eligible person to fill the same until the next regular municipal election, when
the office shall be filled for the unexpired term. If the Council shall be unable to
agree on an appointee to fill the vacancy within thirty (30) days, the Mayor shall
appoint a person to fill sash vacancy.
III. Section 2.06 is amended to read as follows:
Sec. 2.06. The Mayor. The Mayor shall be the presiding officer of the
Council, except that the Council shall choose from its members a president pro
tem who shall hold office at the pleasure of the Council and shall serve as
president in the Mayor's absence and as Mayor in case of the Mayor's disability or
absence from the City. The Mayor shall have a vote as a member of the Council:
i~t and shall exercise all powers and perform all duties conferred and imposed upon
Iri~r ththe office by this Charter, the ordinances of the City and the laws of the
State. ~e The Mayor shall be recognized as the official head of the City for all
ceremonial purposes, by the courts for the purpose of serving civil process, and by
the governor for the purpose of martial law. I•Ie The Mayor shall study the
operation of the City Government and shall report to the Council any neglect,
dereliction of duty, or waste on the part of any officer or department in the City.
In time of public danger or emergency ~ the Mayor may, with the consent of the
Council, take command of the police, maintain order and enforce the law.
c~ -3
IV. Section 3.01 is amended to read as follows:
Sec. 3.01. Council meetings. On the first business day of January
following a regular municipal election, the Council shall meet at the usual place
and time for the holding of Council meetings. At this time the newly elected
Members of the Council shall assume their duties. Thereafter the Council shall
meet at such times each month as may be prescribed by ordinance or resolution.
The Mayor or any two Members of the Council may call special meetings of the
Council upon at least twelve hours notice to each Member of the Council. Such
notice shall be delivered personally, to each Member --1 '-`` -` `=- or be left at
the Member's usual place of residence with some responsible person. All meetings
of the Council shall be public, and any citizen shall have access to the minutes and
records thereof at all reasonable times.
V. Section 3.02 is amended to read as follows:
Sec.. 3.02. Secretary of the Council. The City Clerk shall act as
secretary of the Council: -~-Ie and shall keep a journal of Council proceedings .and
such other records and perform such other duties as may be required by this
Charter or as the Council may require. The Council may choose such other
officers and employees as may be necessary to serve at its meetings. In the
absence of the City Clerk, the Council may designate any other official or
employee of the City (except the City Manager or a Member of the City Council)
to act as secretary of the Council.
VI. Section 4.05 is amended to read as follows:
Sec. 4.05. Nomination Petitions. We, the undersigned registered
voters of the City of Richfield, hereby nominate , whose
residence is for the office of
to be voted for at the primary election to be held on the
day of , 19_, and/or the regular municipal
election to be held on the day of
certify that we are
nomination petitio
.elected thereto.
Name
qualified. registered
ns of candidates for
19_, and we individually
voters and that we have not signed more
this office than there are persons to be
Street and Number
being duly sworn, deposes and says that he
or she is the circulator of the foregoing petition paper containing
signatures, and that the signatures appended thereto were made in his or her
presence and are the signatures of the persons whose names they purport to be.
Signed:
2
i ~ - ~-
Subscribed and sworn to before me this day of , 19_
Notary Public
This petition, if lound insufficient by the City Clerk, shall be addressed to
at
(address).
I hereby indicate my willingness to accept the office of
if elected.
Signed:
VII. Section 4.06 is amended to read as follows:
Sec. 4.06. Withdrawal of Candidate. Any person whose name has been
presented in the manner provided for in the foregoing section as a candidate may,
not later than 12 O'clock noon on the day after the last day for filing,. cause his or
her name to be withdrawn from the nomination by filing with the City Clerk a
request to do so in writing, and no name so withdrawn shall be printed upon the
ballot.
VIII. Section 5.06 is amended to read as follows:
Sec. 5.06. Piling of Petition and Action Thereon. All the signature
papers shall be filed in the office of the City Clerk as one instrument. Within five
' days after the filing of that petition, the City Clerk shall ascertain by examination,
the number of registered voters whose signatures are appended thereto and
whether this number is at least five percent o! the total number of registered
voters at the time of the last regular election. if i'!C-'f3Tf~s the petition is found to
be insufficient or irregular, ~ the City Clerk shall at once notify one or more of
the sponsoring committees of that fact certifying the reasons for his the findings.
The committee shall then be given thirty (30) daps in which to file additional
signature papers and to correct the petition in all other particulars. If at the end
of that period the. petition is found to be still insufficient or irregular,-~~
it shall be filed by the City Clerk in the
City Clerk's office and each member of the committee shall be notified of that
fact by the City Clerk. The final findings of the insufficiency of irregularity of a
petition shall not prejudice the filing of a new petition for the same purpose, nor
shall it prevent the Council from referring the ordinance to the voters at the next
regular or special election.
IA. Section 6.01 is amended to read as follows:
Sec. 6.01. The City Manager. The City Manager shall be the chief
executive and head of the administrative branch of the City Government:-~Fe and
shall be chosen by the council solely on the basis of his training, experience, and
administrative qualifications. ~Fe The City Manager need not be a resident of the
City or State at the time of his appointment, but during his tenure of office, he
3
1(o-S
shall reside within the City. The City Manager shall be appointed for an indefinite
period and may be removed by the council at any time; but after ha-har-aerred
servin as Manager for one year, ht the Manager may demand written charges and
a public hearing before the date of lris final removal takes effect. Written charges,
if demanded, shall be furnished a reasonable time before the public hearing. After
such hearing, if one is demanded, the council shall have unlimited discretion either
to reinstate the Manager or make his removal final. Pending such hearing and
removal, the council may suspend the Manager from office. The council may
designate some properly qualified person to perform the duties of the Manager
during i~ the Manager's absence, disability, suspension, or while the office of the
Manager is vacant.
R. Section 6.02 is amended to read as follows:
Sec. 8.02. Powers and Duties of the City Manager.
Sub. 1. Subject to the provisions of this Charter, any council
regulations consistent therewith, and any other applicable laws, the City Manager
shall control and direct the administration of the City's affairs. ~t The City
Mana er shall have the powers and duties set forth in the following subdivisions:
Sub. 2. ire The City Manager shall see that this Charter and the laws,
ordinances, and resolutions of the City are enforced.
Sub. 3. The City Manager shall appoint and remove, upon the basis of
merit and fitness and subject to applicable civil service provisions, if any, the City
~` Clerk, all heads of departments and all subordinate officers and employees in the
departments. The Director of Public Safety, having administrative and supervisory
control over the police and fire divisions of the Department of Public Safety, is not
under the jurisdiction of the police and fire civil service commission of the City.
Appointments or removal of department heads shall be made final only upon a
majority vote of the Council. (Bill 1981-35) 12/28/81
Sub. 4. l~ The City Manager shall eaercise control over all
departments and divisions of the City Administration created by this Charter or be
the Council
• Sub. 5. liit .The City Manager shall recommend to the Council for
adoption such measures as he or she may deem necessary for the welfare of the
people and the efficient administration of the City's affairs.
Sub. 6. lie The City Manager shall attend all meetings of the Council
with the right to take part in the discussion, but not to vote; but ht may not attend
any meetings at which the Council is considering his or her dismissal.
Sub. ?. ~t The City Manager shall keep the Council fully advised as to
the financial condition and needs of the City, and he shall prepare and submit to
the Council. the annual budget.
4
Ilp-~
Sub. 8. l;Ie The City Manager shall prepare and submit to the Council
for adoption an administrative code incorporating the details o! administrative
procedure, and from time to time Ae shall suggest amendments to such code.
Sub.. 9. ~e The City Manager shall perform such other duties as may
be prescribed by this Charter or by law or required of-~i~ra by ordinance or
resolutions adopted by the Council.
RI. Section 7.05 is amended to read as follows:
Sec. ?.05. Preparation and Submission of Annual Budget. The City
Manager shall, at a special budget meeting of the Council on or before the first
Tuesday of September, submit to the Council a budget and an explanatory budget
message in a form and manner as prescribed in Section 7.06. For such purpose and
at such date as he or she shall determine, the City Manager shall obtain from the
head of each department the character, object, and details of proposed
expenditures together with such other supporting data as he or she -may request,
including an estimate of all capital projects or capital expenditures which each
department head considers should be undertaken in his or -her department for the
budget year and the next five years. In preparing the budget the City Manager
shall review the estimates, shall hold hearings thereon, and may revise estimates as
he or she may deem advisable.
XII. Section 7.06 is amended to read as follows:
Sec. ?.06. Form of Annual Budget. The budget shall provide a complete
financial plan of all funds for the budget year, which shall include: (a) A budget
message, (b) A general summary, (c) Detailed estimates of all anticipated revenues
applicable to proposed expenditures, and {e~ ~ All proposed expenditures. The
proposed expenditures shall not exceed the proposed revenues. The expenditures
for general and special revenue funds shall be by organization unit or activity and
shall .be in parallel columns opposite the character and major or minor object of
expenditure showing the amount of such expenditure for the last completed fiscal
year, the amount estimated for the current budget year, and the proposed
expenditures for the ensuing budget year. In funds other than general and special
revenue, the proposed expenditures shall be presented in an understandable manner
according to the discretion of the City Manager. The City Manager shall submit a
detailed statement of revenues in columns for the general and special revenue
funds for the last -completed fiscal year, the amount established for the current
budget-year, .and the amount estimated for the next budget year. Such detail shall
include the source of miscellaneous revenues, the amount of surplus of prior year
revenues, and the amount raised by property taxes. Revenues for self-supporting
and other funds shall be presented in an understandable manner according to the
discretion of the City Manager. The explanatory budget message may. be separate
but still accompanying the budget, and be in the form and contents as follows:
Budget Message -Current Operations: The budget message submitted by
the City Manager for the Council shall be explanatory of the budget, shall contain
an outline of the. proposed financial policies of the City for the budget year, and
shall describe in connection therewith the important features of the budget plan.
S
~-~
It shall set forth the reasons for the major changes from the previous year In cost
and revenue items and shall explain any major changes in financial policy.
Budget Message -Capital Improvements: As part of the budget message
with relation to proposed expenditures for capital projects stated in the budget, the
City Manager shall include a statement of pending capital projects and proposed
new capital projects, relating to the respective amounts proposed to be raised
therefor by appropriations in the budget and the respective amounts, if any,
proposed to be raised therefor by the issuance of bonds during the budget year.
Budget Message -Capital Program: The City Manager shall also include in
the message, or attached thereto, a capital program of proposed capital projects
for the five fiscal years next succeeding the budget year, prepared by the planning
commission, if such there be, together with lti~ the City Manager's comments
thereon and any estimates of costs prepared by the department of public works or
other office or department. For the use of the planning commission in preparing
such capital program, copies of the departmental estimates of capital
SOMETHING IS MISSING HERE -PAGE WAS CUT OFF
XIII. Section 7.0$ is amended to read ss follows:
Sec. 7.08. Enforcement of the. Budget. The City Manager shall strictly
enforce the provisions of the budget as specified in the resolution. ~Fe The City
Manager shall not authorize or approve any expenditure unless an appropriation has
been made in the budget resolution and there is an available unencumbered balance
of the appropriation sufficient to pay the liability to be incurred. No officer or
employee of the City shall place any orders or make any purchase except for the
purpose authorized in the budget. Any obligation incurred by any person in the
employ of the City for any purpose not in the approved budget or for any amount in
excess of the amount appropriated in the budget resolution or in eacess of available
monies in any fund , of the City may be considered a personal obligation upon the
person incurring the expenditure.
XIV. Subdivision 5 of Section 7.12 is amended to read as follows:
` Sub. 5. Discretionary Fund. A Discretionary Fund is established for
payment of reasonable and necessary expenses, not otherwise payable by the City,
incurred by the Mayor and Council~rrett Members for the benefit of the City and its
people. Appropriations to and expenditures from this fund shall not exceed ;500
per year. The Council may by resolution establish the purpose and procedures for
the making of disbursements from this fund, but disbursements made without
previous Council authorization shall be subject to audit and allowance by the
Council. (Bill 1968-16) 11/25/68
XV. Section 12.03 is amended to read as follows:
Sec. 12.03. No public official shall directly or indirectly receive, or agree
to receive, any compensation, gift, reward, or gratuity in payment for the
performance of his or her official duties except as may be provided by law.
i~-~
XVI. Section 13.02 is amended to read ss follows:
See. 13.02. Oath of Oflice. Every officer of the City shall, before
entering upon the duties of i~ office, take and subscribe an oath of office in
substantially the following form: "I do solemnly swear (or affirm) to support the
Constitution of the United States and of this State and to discharge faithfully the
duties devolving upon me as (Mayor, Counciltrra~ Member, City Manager, etc.) of
the City of Richfield to the best of my judgment and ability."
XVII. Section 13.03 is amended to read as follows:
Sec.13.03. Official Bonds. The City Manager, the City Clerk, the City
Treasurer, and such other officers of employees of the City as may be provided !or
by ordinance shall each, before entering upon the duties o! his or her respective
office or employment, give a corporate surety bond to the. City in such form and in
such amount as may be fixed by the Council as security for the faithful
performance of his or her official duties and the safekeeping of the public funds.
Such bonds may be either individual or blanket bonds in the discretion of the
Council. They shall be approved by the City Council, and approved. as to form by
the City Attorney, and filed with the City Clerk. The premiums on the bonds shall
be paid by the City.
This ordinance shall be effective ninety days after its publication, subject to the
provisions of Minnesota Statutes, Section 410.12, Subd. 7.
Passed by the City Council of the City of Richfield this day of
1990.
Steven J. Quam Mayor
ATTEST:
omas P. Ferber City Clerk
RC160-1
7
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July 20, 1990
Mr. James D. Prosser
City iVlanager
City of Richfield
6700 Portland Ave. S.
Richfield, ?17N 55423
HOLMES & GRAVEN ~ (o-~
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Re: Attached Charter Amendment
Dear Jim:
Enclosed please find my draft of the proposed Charter amendment which
essentially is intended to gender neutralize the Charter. I have generally followed
the language contained in the charter commission draft with the following
modifications:
1. The word "shall" is deleted from the proposed change to Section 3.01
2. Additional language is added to the proposed amendment to Section
5.06
3. Additional language is added to the proposed amendment to Section
7.06
4. The amendment proposed by the commission to Section 2.03 is not
necessary. That section contains an error. The referendum which was
adopted on _11/6/84 did contain the word "the". Consequently, in the next
draft of the charter, that word can be added without further action by the
council.
5. The proposed changes to Section 4.04 were essentially made by
ordinance in 1987.
My recommendation is that the council give first reading to the attached ordinance
at its 7/23/90 meeting. The council should then refer the ordinance back to the
charter commission for its review. After review by the commission and if the
commission recommends that the amendments be by ordinance, the eounc~ can
schedule the second reading and give the notice required by law. I note that a
icy-io
separate amendment to Section 4.04 is also currently being proposed. I would
suggest that the second reading on that amendment be coordinated with the
attached amendment in order to reduce publication costs.
As a final comment, I note that the proposed amendment from the' charter
commission capitalizes terms such as Council, Council Member, Mayor, City
Manager, etc. throughout the charter. (Even for sections which do not directly
relate to the gender amendments.) Although I have preserved those changes in the
gender sections, it would be advisable, prior to second reading, to determine how
nouns should be treated. You will recall that in the ordinance recodification, only
proper nouns, e.g., *,Zinnesota and Richfield, are capitalized.
Respectfully yours,
~.
B. Dean
JBD:sg
Enclosure
RC160-1
i~
City of Richfield, Minnesota
Council Letter No. 192
Agenda, July 23, 1990
Issue Statement•
First hearing on consideration of an amendment to the zoning
ordinance increasing lot coverage in residential areas.
Bachround
A zoning ordinance provision, which restricts lot coverage to 25$
of a residential lot, has been the topic of several variance
applications in the recent past. The City Council, in granting
the variances, has requested the Planning Commission to review
the standards. The Planning Commission has extensively reviewed
the issue and has found the provision to be unduly restrictive
and prevents many homeowners from upgrading their homes by adding
the space necessary to make such homes more livable.
Recommended Motion:
Approve first reading of an amendment to the Zoning Ordinance
increasing lot coverage for residential uses to 35$ for lots of
ug to 7,000 square feet and the larger of 25$, or 2,500 square
foot coverage, for lots over 7,000 square feet and 35$ coverage
of the rear yard for accessory buildings. -The public hearing and
second reading will be scheduled for the August 13, 1990 City
Council meeting.
Basis of Recommendation:
1. The Planning Commission unanimously recommended approval
of the amendment.
2. The City Council expressed concern when granting variances
that the existing requirement is unduly restrictive. The
proposal would allow all but one of the six variance requests
that the Council has granted over the last three years.
:3. The lot coverage variances that were granted do not appear
to have negatively impacted the neighboring properties.
4. A housing goal of the City is to expand the availability of
larger homes.
5. Much of the existing housing was built in the post World War
II period and the lot size and housing type does not meet the
current market demand. This is especially evident in the
scarcity of move up type larger family homes. Similarly, a
two car garage would be considered a necessity for a new
home. Many lots in the. City are only 6750 square feet and
the ordinance prevents the addition of desirable and
necessary features.
6. The City Building Inspector suggested that it is difficult to
meet the existing standards and also meet market
i~-i
expectations. He stated that many homeowners approach the
City to expand their .homes only to be told that it is not
allowable without a variance.
7. If the City were to discourage housing upgrade, it might
result in long term deterioration of the housing stock in
the City.
8. Setback provisions retain necessary control and have more of
an obvious effect on neighboring properties than lot coverage
controls. Similarly, a two car garage rather than a one car
garage provides greater storage and the opportunity for less
visual clutter of motor vehicles in driveways.
9. Surveys have indicated that the City has a reputation for
being a starter home community with families moving out of
the City when they want to move up to a larger home.
10. The proposed amendment gives more latitude to those
homeowners most severely impacted while keeping overall
control.
Alternative Recommendation:
1. The City Council could decide not to adopt the amendment on
the basis that the existing provision has been effective in
controlling the use of property.
2. The City Council could modify the amendment setting a
different lot coverage limitation.
3. The City Council could refer the amendment back to the
Planning Commission with instructions.
DiscussionlDecision Mode:
The next Council meeting which will allow the property legal
notice to be published for the public hearing and second reading
is August 13, 1990.
Respec ully submitted,
James Prosser
City Hager
JDP:ds
s
i~-2
B[LL NO. -
AMENDMENT TO SECTION 515, OP
APPENDIX D TO THE RICHPIELD CITY CODE
City of Richfield Does Ordain:
Section 515 of Appendix n to the Richfield City Code entitled "Zoning:
residence districts" is hereby amended by amending subdivision 4 of subsection
515.09 thereof to read as follows:
Subd. 4. Lo_t__c_o~ve__r_a~_e_. leer res~en#tel dseg; maxfmdm }e# Beverage ,he}l be
95 %; of ether uses; 59%: Ne necessary ba~i~ngs may eeetipy mere #han a89~
of the afea ei' any fear hard.
Maximum lot coverages:
Residential uses:
Lots of 7x000 square feet
or Iess
Lots of over 7,000 square feet
nt}1AP ILCP_C_
Accessory buildings in rear
yard area:
35%
the greater of
257 or 2,500 sq. ft.
50%
3595 of
rear yard areas
Passed by the City Council of -the City of Richfield, Minnesota this day of
1990.
teven . Quam Mayor
ATTEST:
Thomas P. Ferber City Clerk.
RC 160-5
ig
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 193
Agenda July 23, 1990
Issue Statement:
Appointment to the Community Services Commission.
Background:
A vacancy on this Commission has resulted due to a resignation.
The vacancy was advertised in the Richfield Sun Current.
Applicants were interviewed on July 23, 1990.
Background•
Appoint a member to fill the term on the Community Services
Commission.
Basis of Recommendation:
1. In order to assure a quorum for future meetings, the
appointment should be made at this time.
Alternative Recommendation:
1. Defer the appointment to a later Council meeting.
Discussion/Decision Mode:
This item has been placed on the July 23, 1990 Council agenda for
,,~ Council consideration. The appointment will begin immediately.
Respe ~ly submitted,
James Prosser
City nager
JDP:cak