11-28 Resolution No. 11439RESOLUTION NO. 11439
RESOLUTION ADOPTING A MODIFICATION TO THE TAX INCREMENT
FINANCING PLAN FOR THE CEDAR AVENUE TAX INCREMENT
FINANCING DISTRICT WITHIN THE RICHFIELD REDEVELOPMENT
PROJECT AREA
BE IT RESOLVED by the City Council (the "Council") of the City of Richfield, Minnesota (the
"City"), as follows:
Section 1. Recitals.
1.01. The Board of Commissioners (the "Board") of the Richfield Housing and Redevelopment
Authority (the "HRA") has heretofore established Richfield Redevelopment Project Area and adopted the
Redevelopment Plan therefor and established the Cedar Avenue Tax Increment Financing District and
adopted the Tax Increment Financing Plan therefor. It has been proposed that the City adopt a
Modification to the Tax Increment Financing Plan (the "Modification") for the Cedar Avenue Tax
Increment Financing District (the "District"), all pursuant to and in conformity with applicable law,
including Minnesota Statutes, Sections 469.001 to 469.047, and Sections 469.174 to 469.1794, inclusive
as amended (the "Act"), as well as Minnesota Laws 2005, Chapter 152, Article 2, Section 25 (the "2005
Special Law") and Minnesota Laws 2017, First Special Session, Chapter 1, Article 6, Section 18, (the
"2017 Special Law") all as reflected in the Modifications, and presented for the Council's consideration.
1.02. The Council has investigated the facts related to the Modification and has caused the
Modification to be prepared.
1.03. The City has performed all actions required by law to be performed prior to the adoption
and approval of the proposed Modification, including, but not limited to, notification of Hennepin
County and Independent School District No. 280 having taxing jurisdiction over the property included in
the District, and the holding of a public hearing upon published notice as required by law.
1.04. The City is not modifying the boundaries of the Richfield Redevelopment Project Area.
1.05. The City is modifying the boundaries by removing parcels for inclusion in Tax Increment
Financing District No. 2017-1 (The Chamberlain).
1.05. The City is extending the duration of the District pursuant to the 2017 Special Law.
Section 2. Decertification of Parcels from the Cedar Avenue Tax Increment Financing District
2.01. On September 26, 2006, the HRA created the District pursuant to the 2005 Special Law
within the Richfield Redevelopment Project Area by approval of the Tax Increment Financing Plan for
the District.
2.02. The City desires by this resolution to amend the Tax Increment Financing Plan for the
District to remove the parcels listed in Exhibit A from the District, thereby reducing the size thereof.
2.03. The City has determined that the current net tax capacity (pay 2017) of the parcels
proposed to be eliminated from the District is $29,465. Since the current tax capacity is lower than the
frozen tax capacity of $33,779, the City has undergone the full public hearing process pursuant to
Minnesota Statutes 469.175, Subdivision 4.
2.04. The City resolves that the Tax Increment Financing Plan for the District is hereby
amended to remove the described parcels and the Community Development Director is authorized and
directed to notify the County Auditor thereof pursuant to Minnesota Statutes, Section 469.175,
Subdivision 4, clause (b).
Section 3. Extension of the Duration of the Cedar Avenue Tax Increment Financing District
3.01. The date of receipt by the City of the first increment was in July, 2008.
3.02. The 2017 Special Law extends the duration of the District an additional ten years (for a
total of 35 years from the first receipt of increment).
3.03. The City has approved the Special Law in accordance with Minnesota Statutes, §645.021.
3.04. The City resolves that the Tax Increment Financing Plan for the District is hereby
amended to extend the duration of the District. Thus, it is estimated that the District, including any
modification to the Tax Increment Financing Plan for the District, would terminate on December 31,
2043, or when the Tax Increment Financing Plan is satisfied. The City reserves the right to decertify the
District prior to the legally required date.
Section 4. Findings for the Tax Increment Plan Modification
4.01. The Council hereby reaffirms the original findings for the District, namely that the when
the District was established, it was established as an a "redevelopment district" under Minnesota Statutes,
Section 469.174, Subdivision 10.
In addition, the City makes the following findings:
The Modification conforms to the general plan for development or redevelopment of the
City as a whole. The reason for supporting this finding is that the Modification reaffirms
the original finding that the District will generally complement and serve to implement
policies adopted in the City's comprehensive plan.
II. The Modification will afford maximum opportunity, consistent with the sound needs of
the City as a whole, for the development or redevelopment of the Richfield
Redevelopment Project Area by private enterprise. The reason for supporting this finding
is that the City reaffirms that the development activities contemplated during the
establishment of the District were necessary so that development and redevelopment by
private enterprise can occur within Richfield Redevelopment Project Area.
III. The development and redevelopment efforts, in the opinion of the City, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and therefor the use of tax increment financing is deemed necessary.
Section 5. Public Purpose
5.01. The adoption of the Modification conforms in all respects to the requirements of the Act
and will help fulfill a need to develop an area of the State which is already built up and that the adoption
of the proposed Modification will help provide employment opportunities in the State and in the
preservation and enhancement of the tax base of the City and the State because it will discourage
commerce and industry from moving their operations to another state or municipality and thereby serves a
public purpose.
Section 6. Approval and Adoption of the Modification, Filing_
6.01. The Modification is hereby approved, and shall be placed on file in the office of the
Community Development Director. Approval of the Modification does not constitute approval of any
project or a development agreement with any developer.
6.02. The staff of the City are authorized to file the Modification with the Commissioner of
Revenue, the Office of the State Auditor and the Hennepin County Auditor.
6.03. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Modification and for this purpose to negotiate, draft, prepare and
present to this Council for its consideration all further modifications, resolutions, documents and contracts
necessary for this purpose.
Council Member Regan Gonzalez introduced the foregoing resolution and moved its adoption.
The motion for the adoption of the foregoing resolution was duly seconded by Council Member
Howard, and upon a vote being taken thereon, the following voted in favor thereof. Mayor Elliott,
Council Member Howard, Council Member Trautmann, Council Member Garcia, and Council Member
Regan Gonzalez.
and the following voted against the same: None.
Dated: November 28, 2017
Pat Elliott, Mayor
ATTEST:
I qL "I
Elizabeth VanHoose, City Clerk
(Seal)
EXHIBIT A
The following parcels are being removed from the Cedar Avenue Tax Increment Financing District for
inclusion in Tax Increment Financing District No. 2017-1 (the Chamberlain).
Parcel Number
Frozen Tax Capacity
Pay 17 Tax Capacity
Difference
26-028-24-41-0067
0
0
0
26-028-24-41-0068
0
0
0
26-028-24-41-0069
0
0
0
26-028-24-41-0070
0
0
0
26-028-24-41-0071
0
0
0
26-028-24-41-0072
2370
0
(2370)
26-028-24-41-0073
0
0
0
26-028-24-41-0074
2460
0
(2460)
26-028-24-41-0075
0
0
0
26-028-24-41-0076
0
0
0
26-028-24-41-0077
1784
0
(1784)
26-028-24-41-0080
0
0
0
26-028-24-41-0081
0
0
0
26-028-24-41-0082
0
0
0
26-028-24-41-0083
0
0
0
26-028-24-41-0084
0
0
0
26-028-24-41-0085
0
0
0
26-028-24-41-0086
0
0
0
26-028-24-41-0087
0
0
0
26-028-24-41-0096
0
0
0
26-028-24-41-0097
8425
9350
925
26-028-24-41-0098
8425
9350
925
26-028-24-41-0099
8425
9350
925
26-028-24-41-0100
0
0
0
26-028-24-41-0101
0
0
0
26-028-24-41-0102
0
0
0
26-028-24-41-0103
0
0
0
26-028-24-41-0104
0
0
0
26-028-24-41-0105
1890
1415
(475)
26-028-24-41-0106
0
0
0
26-028-24-41-0107
0
0
0