Loading...
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. -9- 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 -10- 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. -11- 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 . -12- 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. -13- 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 -14- 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. -15- 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 -16- 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 -17- 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. -21- (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 REDEVELOPMENT PROJECT AREA "A" -25- H 1- ,- r ~.-..... - ~ ~ N N N v ~ N V) ^ C Q Y gyp, _ I. 10 ~O u) b 0 Of b -' ~ D~fZ i r- l .... I o~ZZ ~ ~, ~~ J( I1 (-ll~lC11 - ~ Iz JL_1G - 1.1 [= (_.-1I 4161 MOll3d ONOl - _ _ ~~~~~ ~[ - LL a 1 ~ _ ~ i__-~, L__ _- r "` 3AV aV030 -=_ r(. _. _]L ~L - ,_ l.- _..11._ . -. au -7( JL __l~ V181 ' VI LI C _ NOlONIW00lH ~- ~~ '~~ '~ 41 SI J~~.7G'111 ~~~.~rI_ ~~r'~~ji 41 bl -. 7~~L ~L_ _~JI I- V I Z I - f '"-'--- 1~, - VI II - _. _..__~ .._-.. ul of I'i J __- 101113 '~~I I 0 Y Ood OIHO ~. a snawmoo ~ ~ J Xavd I~ -1 _ ~-~ ONV lXVO '1~~ ~ IJ •.-. 3nV ONVl1a0d ~LL_::_~~_ VIS 11~1_~I 'ij ---~- ~--~' N Y/b lil~~~ i Q NO1NIl0 fll,r- II Dt£ y 0 ~~oo SN3n315 ' ~~0. U 1.1 (~ ~' 3AV 1311071N ~ - - O~ O 113051 V'1B l i l I C a Nla0M1N3M ~ ii OO Z ~ 1NVSV3ld I.II 0~' _ ~; oo~= f 1 V~ oNVao Iii ~~ `-~J Z ~ 131aavH 'li1 ^ Q = ol3ldavo Iil~ ~'. W '3n0 3lVONAI HOIa0l0 ~I ~ ~~d 1NVAa8 IIi11 ~~ ~ ° w rj Wa ~~ ,- a XVd,07 i~I 1 X leodna I ,'~~ ~- a W NOSa3W3 I \\\~,,~~C__~1-~~ 1NOW3ad ~_ =~~--' Oatla10 I ~~~~-~~ taloewnH II,i~~O~~ oNlnal I I~L~~, ~0 s3wvr ~~u~ril~ XONX ~ _ ~L~L~r~~~ NVOOI -~f. I~L~._JI Nvoaow ~r~~~~C~I NOlM3N i~`-'O~-~I _ _~ a3All0 r , 1(t 1y 3nV NN3d ~~U~ i_-JII~ N33n0 I 1135Sna II - II "I- NOldn I~r- ~~ -1 ~~~ I..1 1N37NIn ~_ -_.-~_~~ -Ji. _~ II NanerlsvM ~II~- :~~ ~I '3AV 53Xtl3x it ur _~~_~i,-_ _ 3 VI N YI ai ~ 30 N 1'n0 b ~ b u~i 0 u Z 2 ~~ 8 } r I,_ W z ~ o -- ~ ~S~ ~ V Ua o n ~ N N N N N W Z N e a r W r n n rY'- n r rm O1 0 _ _ u _lU_ _ - MOl lad DNOl ~L-J~ ~ ~._. _.~ ~ ~3nV x0033 ][--~~ JC ~[ ~ _ '~ , V1~1 11 I Ii l ~L~~~ l;i il_ ~l -J[').. --~!i' NOI~JNIW0019 ~[__ 11 li 7 I V,sl VI bl ]L(~~ ~L~Cr~~~Lr_=1I (;; 4101 m JL-1-_ ~~___~~JL__-1 ~i~ l0lll3 = ~~_ ~ ~_ UL- L--1 ~;~I snew'n o7 !' ~' Xavd I~ JNV lXVO V J(_1 __ - _ - - __~ _-.!I'" '3n7 ON VllaOd C-J~ t) L_~~1 4Jb ~ 7~~lOL- ~~ 1 NO1NIl3 W 7~~'~ __ D,£ ~ W 7U~I I JO DuZ ~ JL~~O ~~ ----_ t SN3n31S ? ~~~o-~_~ 3~ao ~ ,, ,_, a f-- O~OC I 3nV 1311O0IN ~ ~~~L- i~ ~ 1130SIV18 ~~~0 ~ -1~~1`7 H1aOM1N3M • ~O~ I -_..._J III Aan85llld _~~~~~~ .____ I_J_._.1._ II 1N VSV3ld "~~ r--~-~,-- ,) ll.--._._._._ _., j~r_~~ L_._._i- ~ ~ oNVao ~~~ I~j--/'I131aavH I ~ /7pL1 al3ldavo _ ul_"`~J"'' "3nv 3lVONAI _ -1 -- L~~ ~ H31a01V ~~ lO ~1=' 1NOAa8 a~„ ~ ~~UUUU_j I xvdlo3 ~~ ~C] - ~ I 1NOdno r- ~ ~ ~ F NOSa3W3 . ~~~ r - ~ 1NOW3a! Q y~ _- r - . 1 aavalo Q _ ~£. I - laloewnH N ~ >" I~,I ~~i ~~~- oNlnal W t: '~ ~ ~` 53wvr Q ~c. ~ I n~-~'1 NV~O, ~ ~[r_ [_; ~~_ ~~~_ ~~ Nvoaow JC_, [~ ~ ~~ ~ II NOl M3N 7f~_ f~ ~~ ~lyl a3A710 ~ ~~ L~O~~L~ C-~~il W rr !- 3AV NN3d - ~0'~ -- ~ji N33n0 C ~~--~~ ~~~~~ ll3SSOa W l--_~ ~L--Jl __ ~ ~ J_ L-- II~ StlwOHl S W 1I _Jr J~J ~LJ~) NOldn ~ II ~~ `~~ [ ~L.~I 1N37NIn ^ J ~ I ~I--"- NaneHSVM ~-_=~`~>~ '3AV 53Xa3X ~ N N ~ O to n r r n N H N N N N N N N ~ ~ V) N e m e or o r= r n n n ti 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 -42- 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. -43- 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 -44- 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. -45- 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 -46- 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. -47- 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, -48- 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. -49- (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. -50- 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 -51- 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. -53- .(Intentionally Left Blank) • • ~J -54- 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- ~o io .°n ~ i ~ I .o -- ~ Q ~ 8 _ I ,~ ril Z I F Ga. o ~ H51ovuZZ II ]~ If [ 1 ~ U ., g~ _z ' U~UC_ aJ a ~ ~ r Z is IZ -- -J, I N N t~ N N N N N N W 41 oz 0U[__I C_^. o z __ ~ ~ ~ ~_ _ 4161 O ~ °r r m n me r r r r re [ =1C 7~_~[~ __ i 1 _ MOll3dONOl !L a1 = "F ~- '1 _-~ ~ 3AV av030 I1 ( 1 ~j II ~-- 4191 ~ -~° ..:-]( 11[ :- 11 ._1L-~ )U 4191 ~ 1[_~C ]L-7UL_ - NO1pNIW0019 ~- ~~ ]G: Il[ --l[ UL:__7 _„ - l 4161 ~~~1!]r-'~I[ __. ..]C JI-_.. U~C]C~C_:11f1UL-11 J I I -- - CUC~~ VI I I I _.~--~_-~- - --- ~_ C. 1 Yt 01 I I - - I ~_a 101113 ~~ z 1 ~=~-. OpvpiHp Iii ~ " - snewmop ,~ ~ J _ 1~ ~j Xavd -~ ' --yCU ONVlxvO IIIL._.l_L L.~~. UJ_ -U~C~~ '3AV ONVl1a0d ~7 ~ 4, s il~i~ ~= 1 _ ~~ Q NO1NIlp I ~~~ ___-- `-~~ w „£ ~ U-U~UC~I~ -~UCU °C DU __~U~ Q ~ SN3A3'S ~I _ _ OO __.- U~C N ~ '3AV 13llOpIN 1 OO I41,~JI~ ~ ~ ll3p SlvlB ~~I ~~ ~-_:~ Hla0M1N3M ~ ~I ~~ ~ ~~ TO Aan9Sllld II ~~~- - y ~ 1NVSV3ld '~1 - - J Z ~ 131aavli I~ it 0^ C`~ ~~ ~~~ U ~ _ ~ I O '~~ ~j ~ U 'J Q pl3ldavo' III ~ a,~ '3AV 3lvONAI ~ ~`}~ ]~_'~ Z HOIaOIV~, ~~ ~ ~ ~N~, ~/.dF'~ Q 1NVAtlB II I'1 - ° m D `\IUY~ , I a XVd,pp iI x II JGi: _ ~,,. NOSa3W3 ~~ ~- ~----=- pavalp II UGr~~_~LUUJ ~C rJl \ 1O108WnH ~ I~u UU ONIAaI ~~ 53wvr LU~U]t-JL~ .-11 ~l__ _ NvOOI __~UUU~ U ~[~_~ Nvoaow ]~UU U~UU`/ ,II NOlM3N ~~~~~ ]I .~ L ___] L .. 1I~- 1 ,, U~ a3All0 Il~r ,L. ._4i-1L._J U_][ ~ ~- 3AV NN3d u r (~ _ _ N33f1p ~]J IIIrv-y~, ,~U~ 1135Sna I~L_-UI~L~I- ~~-~1 Nv01a3H5 I II__.-~I~~I JC __ ~ [~~~~f SVWOHl ~__ - ~-~[I~ 1L /l~i._-1 If ~l _Jl _~f Noldit bf -- .__.1 [_ 1~~', J' ; yy Is---]C ]E=lf 1N30NIA j `` Nang NSVM III[ _. l[ -11-... 11'~ ~~ ~l _~_ 1 '3AV S3Xa3x iuC- :~, _][ li, _, I ~-.J(. ~ (..`_".-. N N brit N N N N N S 2 ~ ~ ~ tip t~D ~D b N b Imo N N N O C U _ ~~--- ~ - ~ MOll3dhHOl ___ -- u l(1 - i 3AV av030 41 BI - ~ v~ ( (~ j J ~~ 4191 ][ 1. -_. ]l-_~Cl~~l__1~U~ U ---III NOl'JNIWOOIB I II - ._. ~~~ VI SI -: _ L_I . U[ _ =~C~L _~V__l ~L l - l I i V121 ~~ ~ m JU(~~~[UUU _~[UU[U _ I~ ii lOlll3 Q UI IUU UCUU[U - _-~; it OpVJiHp ~L~fU(U~ -UU~Ur~ ] II''I snewmo~ < ..U[~U~ i U[U ULU ~ ~ Xavd - ~i ~ F u ONV lxvO V __-=][UUCP --- --- J -- [- ~ _l '3AV ONVl1a0d ~ UU O~ ~ CU ~ U\iiI vls G J -- V 1 b UOfUUUUL-_ I IINO1NIlp Z. _UfUU~ J`~ ~~l ~ W ~DE~[~U[U [U -= PI £ w ~~O]~=(~~~~ I'--~ I SN3A31S Z Uf rlp~~L-JI~~1 -_ I-_ _-~ ~~~~L-~Ut-1~. U ~ 'SI 4 1 ~'" 3AV 1311001N ~. ~~~- ~~~ ~- 1~~I--~v~I1II 1130 SIV18 ~~~~ (-~lU `, HLaOM1N3M • _~ -~~- ]Cr~r,~~ 1 -- ]~U1) Aanesllld :_:_-._._~~~~uU._.__I-J_._.1._I!11NV5V3ld- U ~~ ~ r i_J 1131aavH L1Gnr~J --- ~~ ~~ /~I pl3ldavs ~~~~_~''ll ~('q~ '3AV 3ltlON AI C~ ~ 1 L-J~ ~'~ HOIaO Iv I` J~ 1NVAae Y ~ U r ICI XVd IOp ~a UUU U III °o x 1NOdno a a ~ ~1J ~n ~~_~,~ 3 -~ NOSa3W3 UU~ '~ 1NOW3ad aU~ UU[ _ , ~~_~ . 1 pavaio Q ~- __- _ _ ]~ I _ _ _ _ lploewnH N 1~~~~~ 3>tv9 j .__._7- BSE__ 7 ~ ~ -~. ~~ rl ~\~ pN1Aal Q J, U[- ~ U ~ _ _ ~ '~ xoNXr Q I - __ - ---~II (Cr~]CUU- C ~ [[( _ ~C -_] L.~ III __~11 U___ I_~_. ~ ~ L_U [_U~.. I:~I a3A 110N F ~C ]1--.J CUU _]U~LU CJJ, .3AV NN3d W ~l N33n0 C- _-~[ _~L - ~G,N ICI c I I - ~ I 113S5na W [ _]C C_~._ ~ Nv 01a3H5 W _-~J _1f _7 1 _1L ~ ~ C ~[.---- i SVwoHl W _ ~ ---~~I Noldn ^ ~~...~ ~~ I~ ~ ;~_ ~~ ~~ __.~ ~l. I' 1N3pNIA .] ~ I CCALM i r~ \/ - I~rla,a~?1 ~~~ NtlnBHSVM T- ~.-- ~`~'- 3AV 53xa3X N N N N N N N N N N FO N p~ O ~ ~ r n n r ~ r 1D 1' m r r r r 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 L4t~ R ems. A~.. ~ r, 8]17 OVPONI AVENUE 50VTH BI OOMIN GTON,MINN. 55170 I ~ LANO SURVEYORS tee-708. --~ ~ -- ~ ~We ~ENN ~ /ine o ~ SFS'%./ A V~ o~~_N/~tri /~ <f Sic. 33 _ - Jc- w w ~' ' ~ ExG EF Ti oiV -- _ . ~ ~=-~ -- -- _~ -- _ ~ ; # $ ~ ~ ~ Ali 4~ oo ~ ~ s h 30,00 a~ as 30 ~ ~c ~ h ° ~ ,/ ~~° 1 ~; TI ~o a°el , ~- i Y .fl ". 0.' 4~7 ~~,. i ~ ~y ~ ]~ -, ~ ro /~~ L a ~ ~ .Y ~I i .~ ~ ~ ~ 0 ,Z/r./ewy ~ N ~ ( ~ is a ~ ~ ° ~ ' P ~ ,~ ("~ ilA 2~ ~ i , 1 r ~ ~.y ~I l ti ~ ~ lr ~ 0 ( j ~ \ ~ ~ ° ~~ 3 I - ~ ~ ~ I ~ \ 1 V,1 ~ ~~ o 4 ' ` r . ~~~ 00 I .. 3 ~ nx I~f iy , ~ N iP r ~ s ~ IN ~ ~i --- IA ' ' I ~. / J ~ p '~ ~ A rrvBWaY 1 ~i V l ~ ppy , ~~ I \~ * ~ i~J "" ~ __ ' .__._r - _~ 0 (~ "t ~ 6 1 wi - - i ~~ ~°~~-- I - Z6 ~~ mrpryl~YtiHiHNMr'>+n~ '~ ~ 11~ ~.].. -~ ~ _' .. lV ~ `r,, ± .A .` „ ~ p 1 ~ ~ , - .~. 1 ~ I p .p 1'Q i' Nip<~r.~ C.,~»7 ~'RI s r . ) r" Iw. -. --- - - -~- -- - - - - N rtr5 0$ •s ~~a~ S ll~ ~* _ •~OZ.oO- _a fefeG ---,` :\:4 +• S~ ~` ~ 1 t 4 F , + ~~~ 1•D li i1 . rf/~ ~ ~) .. - .. 2, Y yr M '1 T^ - r Iw A ~ - 111 Ite fara9e floor 1~~_°_ w.~.a.~ _ f wr// ~. rfS- 6 37s \ ~ .,~~~.. . •. ~• ~asem~n* floor h ~ ~ '• q I~ 5orvs`v far: 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 "' '! i aka„ 'y 'I. !I ~Z OQ J w °' ~ W Z ~' 'W O wa ap r ~ o t~ N ~~ W W ac F- N IO N ~~ N W 3 I i ,OE 3nH3nv aanno 0 ` ~' 3wi ls~ N «Z • W ~ ~ J ~ i Q U ~ -- -- 3wllOl - - -- ~~ /1 ~ I '/I~:~ r 1 ~ ~ ~ IN I r ~ ~ ^ \` ~ _ O_ 0 ~ -~ I I I ~\ __ r / ~ ~ ~ I~ ' J J ~O 0 :~~ ~ ~ ~ i •, 9 Z 0 ~ I ~ I ,o I , S Z I 1 ~ ~ ~ ~ ~ \' ~' ~ ~__ -- 3w1101 -_ ~ ~ M i ~ H1f10S 3f1N3Ad NN3d H O W Z O W ~` ~ U z o Z J W a T o N • M N ~ N y~ N = N N ~ ~ l i s r • 10 r V N~~ -r- t ~ y {ii ~ tl C2 ~^-~I G ~ G -~ > .u f •.zi ~_~ ~: ~ U z 1112 L ~__ ._ J~I ~ W ~ 1~ , I^J I N N N N N M N M M ~_ I ~ 11102 -~• ~• I i ~ _ 7nt Yt03C ~~ --~`'-_ _. ~,~!«' - - - _ 7J x. _ _ _ _ w0„71ON0, r ~- -- I~~~ _j~ ~ 7n/ Yt03. 111 t: f ~I~_I~~~~~~~~,1 ~,~ -_-. ~I Ii '/•'I Y1 tll NO10NIw001i ! ' ~---' --- -- --~- N017M:wOQp 2 I tl I 11. =~_=__~~~' _~ ~ ~ _-- `-~=-_ •121 ,I~`J `-~ J I~J__J.__._ _~_I__J~II I'!,1 111 n YI OI it ~ ~_ I, G ~ y __ -: ~J __. ~ ~ 101„7 Oat~IN7 II ~ i_i`_' _-__•-_ 1^_ 1. IIi ~ J 1 ~ ~ ^~~.---~- .~ ,.---1~ ~ OIt OIM~ LMwflIO~ ~---_~_ I I,. ~I TniwnlOC rwr ~'"'~ _I-- -- _•= .= it ,;'! r-' I, =1=--,~ I rrte 7At OMt,lYOe ~ ~_I ~___I• Y1t MO1M110 __~iI~~I~ 'i 'p: -Y2 ~~i I ~ I_ ~_'~ tri I I' 1 {M7n71( I11j~ CN3A71S 111'",~\ I ~ I~~. I _~..~~ /. J- I ~ ~ 7At 17„OOIN 9170fev,f 1 l' ~~`_~ _~~ ~~ 1 ~ t,70flt,i 1:' NtY01111N7M i 11 ~ ~•311b' NN3d ~~.___,~ NU OMIN7M LYnlt„Ir I~;': !~ 1 I _-_1.1 AYnrs„le 1MKt7,r -rc,~ i I +~.~.~.~. r..::: 1Mtit3,d f I:i 171YYtN I .~.-.~ ~__ ' 131YY tW I'~ I I c~ ~ .1j O,71srtD '7At 7,tONA, «SIY010 Ill ~~ :;~"•' ~-- C iNtw«Q ~It ~.: ~' • w ..::::: ~'1.-~~. NOIrO,t .. M n I '~ u ~. ...... ~~ I' li MOL )w) II \~ .~-~ ~ 1~5. ~~ R. ..' ~ '-1^' Al 1MOdn0 aM1Arl ••• ' s7wtr •• "" so«a I ~ 1 1 MtaO, MtaYOw !~~I~~-~~ J~~~ I^i 1 ~' II MOl M7M ~'~--1~~ •1'• I~ F3 I_~I~,J, I~ + -+ MOl r17M 1 Y7All0 '7At MM71 ~~:_JC-~~~I---~~^J .._...~~' _~'`J~,~,J~ ~~~~,'1 '7AI MM7d M77n0 11 ~~ ~r~~ ~.~'~~~ _r~~ler~ i ~, w77no Mt01Y7N(. -____ ~L_ rl.~'._.--.•-.~. _ _'~'.~11..~~1 ~i 1,7t(nY- ~~~ L ~(~~ '_~~_ _` _~~_ .~ Itt OIY7NS «Oldn ___.~~ I _ __ __ i M70NlA ~c_~' _ . _ _ y~ 1r--~,-~~ !I lM7~MIA '7At t7)Y7t '~u....~...~-.. ~.. ..~a ..~~...a_--~.4vc-:_r ~>s. ..~ ^1 It I 7At (7a Y31t k i T N N M M M N N N N M N M M M N M N M Nt. • N pt M N g ., 720 ~ PENN AVENUE SOUTH C-1 NEIGHBORHOOD BUSINESS MR MULTIPLE DWELLING ~~;~~ MR-1 TWO FAMILY RESIDENCE ~ o ~o..~~ MR-2 3-16 FAMILY RESIDENCE a R SINGLE FAMILY RESIDENCE - -- - ZONING - .~ ' C O O O G --- o n H ST. 7201 PENN AVENUE SOUTH LAND -USE ~~ ~ 1 t --- ~ ~ • ~ ~ _~~ ' ~ ~ 1 ~ 1 ~~~ ~y-~ COMMERCIAL ' APARTMENT .•.•. • DUPLEX .. .~ D SINGLE FAMILY RESIDENCE x ® OUASI PUBLIC PUBLIC SCHOOL <~` PARK Y~f //,~ VACANT 7201 PENN AVENUE SOUTH ~y-~ COMPREHENSIVE DEVELOPMENT PLAN o Gf 00 ooc ooc no 000 00 •. --~ o 0 70TH ST. ~ ' ~ • ~ ~ °o°oo ~~~ ~~ R .~-w ' o OO _T_ i i ' o ~ ~ ~ ~ °°ooo __ ~ • ~~ _~- ~o-,~n cr °°000 - - o o MEDIUM DENSITY BUFFER .,o c oooc ^c0 'o 0 °° °~.,~:.~~,..'~~..',~'. MULTIPLE RESIDENCE 000 (~ 00 ~O ° ~ SINGLE FAMILY RESIDENCE r.0c°o INSTITUTIONAL O.U O G C+„ 00000 ~ r PARK dr OPEN SPACE 0 oco D C O O°O° O O 000° C°G° 71ST ST. o°o° 00 °d°o yo o° ~oooc ~°ooo °ooo co °oooo ~oooo .r Y~ (~ ~5 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 Attorne,s ^t Lew ~toRFRr A..41.tior IT. D.BAFRTtiCHI 1\ALD H. B4TT1 M11AR\ J. BkF\DEN Srt:rHF\ J. BI R( I Rt)Rt:RT (~. CARI ti0\ CHKF5T1\F M. (HALF J(IH\ B. Dt A• ROBt.RT J. Dula MARS G. D(IRRI\ti Jt:FFRF\ t:\(; tiTFtA\IF \. (;AI F\ D.A\m 1.. GRA\t• JAA1 t.~ ti. Hol Mtn D,aInJ. i~F\\t n\ JOH\ N. LAR\o\ NEL11\cTO\ H. LA\+ July 20, 1990 Mr. James D. Prosser City iVlanager City of Richfield 6700 Portland Ave. S. Richfield, ?17N 55423 HOLMES & GRAVEN ~ (o-~ fHARTt:kkD /70 Pillsbur, ('enter, Minneapolis, Minnesnt~ SS/02 IF12) 337.930U JI l.lt A. LAN LLR F~csimik 1612) 337-9310 fNARLt.ti 1.. Lf.Ft:\ t:Rt J4H\ M. LEFt\ NE. Jk. R(IRtkT J. LI\DA1.1. l.Al kA K. MULI.tI DAVt.f k. Vt.LSU\ BANR4N41.. POKINObD K'kITt:R'ti DIRt:CT DIAI. MAkt FRA\(t~ Sh.u.A JAMB M. SlkbstMf \ STt\t.\ M.1AILf.\ 337-9207 JAMt_ti J. 1 HUM~II\, JN. I.ARR\ n1. Ht.kT llflM BU\\It 1.. NILKI\ti at (ul Est I kORt.kT L. U~N IUti(1\ 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