05-16-2022 HRA Resolution No. 1434HRA Resolution No. 1434 1
HRA RESOLUTION NO. 1434
RESOLUTION APPROVING A MODIFICATION TO THE TAX INCREMENT FINANCING
PLAN FOR THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT
FINANCING DISTRICT
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota (the “Authority”), as follows:
Section 1. Recitals.
1.01. The City of Richfield, Minnesota (the “City”) and the Authority previously
established, and the Authority administers, the Interchange West and Lyndale Gateway Tax
Increment Financing District (the “TIF District”) within the Richfield Redevelopment Project in the
City. The City and the Authority approved a tax increment financing plan (the “TIF Plan”) for the
TIF District pursuant to the provisions of Minnesota Statutes, Section 469.174 through
469.1794, as amended (the “TIF Act”).
1.02. Pursuant to Section 469.1763, subdivision 2(d) of the TIF Act, the Authority may
elect to increase by up to ten percent (10%) the permitted amounts of expenditures for activities
located outside of the geographic area of the TIF District if such expenditures (a) are used
exclusively to assist housing that meets the requirement for a qualified low-income building, as
that term is used in Section 42 of the Internal Revenue Code of 1986, as amended (the “Code”);
(b) do not exceed the qualified basis of the housing, as defined under Section 42(c) of the Code,
less the amount of any credit allowed under Section 42 of the Code; and (c) are used to
(i) acquire and prepare the site of the housing; (ii) acquire, construct, or rehabilitate the housing;
or (iii) make public improvements directly related to the housing.
1.03. Pursuant to Laws of Minnesota 2021, First Special Session, Chapter 14,
Article 9, Section 5 (the “Special Law”), in particular subdivision 1(b), the City and the Authority
are authorized to transfer tax increment accumulated for housing and development purposes
under Minnesota Statutes, Section 469.1763, subdivision 2(b) or (d), to the Affordable Housing
Trust Fund established by the City.
1.04. The City and the Authority have determined to amend the budget (the “Budget”)
set forth in the TIF Plan to use up to ten percent (10%) of the tax increment from the TIF District,
less any amount utilized for administrative expenses, and transfer such amount to the City’s
Affordable Housing Trust Fund for housing development purposes authorized by the Special
Law.
1.05. Pursuant to Section 469.175, subdivision 4(b) of the TIF Act, a tax increment
financing plan may be modified without public hearing or the findings required to be made for
the original tax increment financing plan if the modification does not include (i) any reduction or
enlargement of the geographic area of the project or tax increment financing district; (ii) an
increase in the amount of bonded indebtedness to be incurred; (iii) a determination to capitalize
interest on debt if that determination was not a part of the original plan; (iv) an increase in the
portion of the captured net tax capacity to be retained by the authority; (v) an increase in the
estimated cost of the project, including administrative expenses, to be paid or financed with tax
HRA Resolution No. 1434 2
increment from the district; or (vi) the designation of additional property to be acquired by the
authority.
1.06. There has been presented before the Board a proposed form of amendment to
the TIF Plan (the “Amendment”). The proposed Amendment to the Budget in the TIF Plan does
not increase the total estimated tax increment expenditures, amount of bonded indebtedness, or
capitalized interest and does not make any other changes that require a new public hearing
pursuant to Section 469.175, subdivision 4 of the TIF Act.
1.07. On May 24, 2022, the City Council of the City will consider the proposed
Amendment to the TIF Plan.
Section 2. Amendment to TIF Plan.
2.01. The Budget shall be amended as set forth in the Amendment to the TIF Plan.
2.02. The Amendment to the TIF Plan is hereby approved, subject to the approval of
the Amendment by the City Council. The Board hereby transmits the Amendment to the City
Council for consideration.
2.03. Upon approval of the Amendment to the TIF Plan by the City Council, the
Executive Director of the Authority is hereby authorized and directed to transmit a certified copy
of this resolution to the Taxpayer Services Division Manager, acting as the county auditor of
Hennepin County, Minnesota, the Commissioner of Revenue of the State of Minnesota, and the
State Auditor, as required by Section 469.175, subdivision 4 of the TIF Act.
2.04. Authority staff, the Authority’s advisors, and legal counsel are authorized and
directed to proceed with the implementation of the Amendment to the TIF Plan.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 16th day of May, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary