05-24-2022 Resolution No. 11980Resolution No. 11980 1
RESOLUTION NO. 11980
RESOLUTION APPROVING A MODIFICATION TO THE TAX
INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE
TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED by the City Council (the “City Council”) of the City of Richfield,
Minnesota (the “City”), as follows:
Section 1. Recitals.
1.01. The City and the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the “Authority”) previously established, and the Authority administers, the
Urban Village 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
increment from the district; or (vi) the designation of additional property to be acquired by the
authority.
Resolution No. 11980 2
1.06. There has been presented before the City Council 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 16, 2022, the Board of Commissioners of the Authority approved the
Amendment to the TIF Plan and transmitted the Amendment to the City Council for
consideration.
Section 2. Amendment to TIF Plan.
2.01. The Budget shall be amended as set forth in the Amendment to the TIF Plan,
and such Amendment is hereby approved.
2.02. 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.
2.03. City staff, the City’s advisors, and legal counsel are authorized and directed to
proceed with the implementation of the Amendment to the TIF Plan.
Adopted by the City Council of the City of Richfield, Minnesota this 24 th day of
May, 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk