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88-7402R/L RESOLUTION NO. 7402 THE CITY OF RICHFIELD, MINNESOTA Resolution approving the Cedar Avenue Business Area Redevelopment Project, Establishing of a Tax Increment' Financing Economic Development District Located Within The Redevelopment Project; and Approving the Redevelopment Plan and Tax Increment Financing Plan Relating Thereto Be It Resolved By the City Council (the "Council") of the City of Richfield, Minnesota (the."City") as follows: Section 1. Background The City finds as follows: 1.01 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") on .its own initiative has prepared a Redevelopment Plan (the "Redevelopment Plan") for the Cedar Avenue Business Area Redevelopment Project (the "Redevelopment-Project") in accordance with Minnesota Statutes, Sections 46.9.001 to 469.047, inclusive, (the "Redevelopment Act"), and has prepared a Tax Increment Financing Plan (the "Tax Increment Plan") for the Tax Increment Economic Development District (the "Tax Increment District") located within the Redevelopment Project, in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, (the "Tax Increment Financing Act"). 1.02 The Redevelopment Plan and Tax Increment Plan, dated January l9, 1988 are now on file with the City Clerk. 1.03 The Redevelopment Plan a been, in accordance. with the Acts, Commission by which action taken on commented on the Redevelopment Plan has found that they conform to and general plan for the development or a whole. L.04 The HRA the undertaking of the Tax Increment Tax Increment Plan Council for public Acts. nd Tax Increment Plan have referred to the City Planning January 19, 1988, has and Tax Increment Plan and are not in conflict with the redevelopment of the City as by resolution of January 19, 1988 has approved the Redevelopment Project, establishment of district, approved the Redevelopment Plan and relating thereto, and referred them to this hearing and consideration as provided by the 1.05 This Council on the date hereof conducted the required public hearing at which the views of all interested parties were heard. Copies of the Redevelopment Plan and Tax Increment Plan have been forwarded to the school boards of Independent School District No. .280 and Hennepin Technical Institute (Intermediate District No. 287), and the County Board of Commissioners of Hennepin County as required by the Tax Increment Act. Resolution 7402 -2- 1.06 This Council has fully reviewed the contents of the Redevelopment Plan and Tax. ncrement Plan. Section 2. FindinQS; Redevelopment Project. 2.01 It is hereby found and determined that within the. Redevelopment Project: a) the public interest requires the replanning, reconstruction, and rehabilitation of neighborhoods; b) that in order to protect the overall economic stability of the community, particularly its commercial areas, it is necessary to redevelop and emedy conditions of underutilized land; and c) that in order to cteate an economic environment which fosters the growth of a healthy commercial base and facilitates the redevelopment of land, ~t is~necessary to encourage private enterprise to engage in red velopment to be constructed in accordance with a comprehensive community plan. 2.02 It is further specifically found and determined that: a) the land in the Redevelopment Project would not be made available for redevelopment without the public intervention and financial aid described in the Redevelopment Plan and Tax Increment Plan; ~ b) the Redevelopment Flan for. the Redevelopment Project will afford maximum opportunity, consistent with the sound needs of the City as a whole, for~the redevelopment of the Redevelopment Project by pr vate enterprise; c) the Redevelopment Plan conforms 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 469.028, Subdivision 2 of the Redevelopment Act for the purpose of showing the City's intent to exercise, in conjunction with the HRA, tt~e powers granted to the City and the HRA by that Act in order to achieve the objectives of that Act. Section 3. Findin Development District. Tax Increment Financina Econom 3.01. It is found and desirable to the sound and ~ of the Redevelopment Projec protection and preservation general welfare, that the a~ Financing Act be exercised l public financial assistance determined that it is necessary and irderly development and redevelopment and the City as a whole, and for the of the public health, safety, and. ~thority of the Tax Increment iy the .HRA and the City to provide to the Redevelopment Project. Resolution 7402 -3- 3.02. It is further found and determined that the Tax Increment Financing District is an economic development district pursuant to Minnesota~Statutes, Section 469.174, subdivision 12. It has been determined that the proposal for development consists of a Redevelopment Project which tfi a HRA finds to be in the public interest because it will result in increased employment in the municipality and it will result in preservation and enhancement of the tax base of the municipality. This wit=1 be achieved through the construction of a commercial, corporate office building and related parking structure on underutilized land. 3.03. It is further found and determined, and it is the reasoned opinion of the HRA and this Council, that the proposed development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary since the proposed development requires certain necessary land acquisitions and assembly and other improvements without which the developer could not construct the commercial development project; and without the use of tax increment as a source of revenue to assist with the financing of the land acquisition, assembly and other improvements, the .developer would not construct this development in the City. .3.04. The proposed public improvements to be financed through tax increment financing are necessary to permit the City to realize the full potential of the Redevelopment Project in terms of development intensity, employment opportunities and tax base. 3.05. -The tax increment financing plan conforms to the general plan for the development of the City as a whole as it will result in the new construction of a commercial structure. The Planning Commission of the City has submitted its written comments to this Council to that effect. 3.06. The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Redevelopment Project by private enterprise as it will enable the HRA to provide the necessary commercial development for the City and a suitable site for this development. 3.07. The City elects clause (b) of Minnesota Statutes, Section 469.177, subdivision 3, relative to the assessed value within the Tax Increment District for contribution to the fiscal disparity pool. 3.08. The Tax Increment Financing Plan for the Redevelopment Project will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the Redevelopment Project by private interprise._ Resolution 7402 Section 4. R Establishment and velopm~nt~P roval:l Cer -4- and Tax Increment Distri ion_ and Filing. 4.01. Redevelopment Pan relating to the Redevelopment. Project is hereby approved. 4.02. The Tax Increment District located within the Redevelopment Project is hereby established. The Tax Increment Plan relating to the Tax In~rement District is hereby approved. 4.03. The geographic '~oundaries of the Redevelopment Project and the Tax Increme t District are not coterminous as each is described in the Re evelopment Plan and Tax Increment Plan which document is adop~ed herein by reference. 4.04. The HRA is requ sued to transmit a certified copy of this resolution together wi h a copy of the Redevelopment Plan and Tax Increment Plan and a copy of the HRA resolution approving the Plans to the Director of Property Taxation of Hennepin County with a request that the on final assessed value of the property within the Tax Increment Oi~trict be certified to the HRA pursuant to Section 469.177,1 subdivision 1 of the Tax Increment Act. The HRA is further requested to file a copy of the Redevelopment Plan and Tax increment Plan with the Minnesota Department of Trade and Economic Development as required by the. Tax Increment Act. 4.05. The Clerk is authorized and directed to transmit a certified copy of the resolution to the HRA. Passed by the City Council of the City of Richfiel¢,this 22n ATTEST: ~~~~ ! ` e Thomas Ferber, City Clerk even ~. Qua 0 yor bruary, 1988,