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06-28-1994CITY OF RIOFIFIELD 46 ft«nrnn mission June 28, 1994 7:00 p.m. -- Regular Meeting RORR CC EU Approve ®f Mmutso Regular meeting of May 24, 1994 and study session of June 14, 1994. ITEM #1 94 -CUP -3 305 West 77th Street - New Horizon Child Care - conditional use permit ITEM #2 94 -CUP -4 7132 Portland Ave So - Interfaith Hospitality Network - conditional use permit ITEM #3 94- APUD -1 6615 Lake Shore Drive - screening of balconies - amend final development plan. Nev : U intti ITEM #4 PC Letter #13 Modification to the Richfield Rediscovered Redevelopment and Tax Increment Financing Plans ICi : Utillletiti Uafieon Rep®nto School Board Community Services Advisory Commission HRA City Council AdHoc 135/1494 Traffic Committee Adju ur laent Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Service's Director at 861- 9702." PLANNING COMMISSION MINUTES MEMBERS PRESENT MEMBERS ABSENT COUNCIL LIAISON Regular Meeting May 24, 1994 Chairperson Daniel Linnihan; Commissioners: Pamela Dmytrenko, Michael Gallagher, William Snyder, Kristal Stokes, and Paul Wasko Timothy Erlander, Morris Nilsen II, and Thomas Scaglia Martin Kirsch, Mayor STAFF PRESENT: Byron Wallace, Community Development Director; Don Fondrick, Community Services Director; Bill Weaver, City Planner; and Shawn Drill, Zoning Administrator. The Planning Commission meeting was called to order by Chairperson Linnihan at 7:00 p.m. APPROVAL OF MINUTES M/Stokes, S/Wasko to approve the minutes of the regular Planning Commission meeting of March 22, 1994, and to approve the minutes of the special Planning Commission meeting of April 12, 1994. Motion carried: 6 -0 PUBLIC HEARINGS None. h, Planning Commission Minutes May 24, 1994 Page 2 NEW BUSINESS ITEM #1 PC Letter #12, 1996 -2000 Capital Improvement Program (CIP) Zoning Administrator Drill reviewed the staff report, stating that the CIP lists proposed capital improvements in order of priority, together with the cost estimates and method of financing. Mr. Drill reviewed the differences between Plan A and Plan B. He also noted that the 1995 Capital Improvement Budget (CIB) had not yet been approved by Council. Staff recommended approval of Plan A or Plan B, depending on which 1995 CIB plan is ultimately approved by Council. Don Fondrick, Community Services Director, was available to outline the CIP plans and answer questions. He stated that the plans were very similar except that Plan A delays implementation of certain projects for one year based on lack of funding. He said the Community Services Commission recommended approval of both plans depending on the 1995 CIB. Responding to Commissioner Snyder, Mr. Fondrick reviewed the Woodlake Nature Center project relating to storm water protection. Responding to Commissioner Wasko, Mr. Fondrick reviewed compliance with the Americans with Disabilities Act (ADA) for the proposed projects. M/Snyder, S /Gallagher to recommend approval of Plan A or Plan B depending on which 1995 CIB is approved, with a preference for Plan B. Motion carried: 6 -0 OLD BUSINESS Commissioner Stokes reviewed her participation in the Minnesota Design Team. She said the Team traveled to Clearwater for a weekend of long range planning events. She added the experience gave her several ideas for Richfield's comprehensive planning process. Discussion of progress on the Comprehensive Plan amendment followed. Planning Commission Minutes May 24, 1994 Page 3 Chairperson Linnihan stated that he would like to come up with a list of topics and schedule for future study sessions. He also stated that the June 14, 1994 study session topic would be on the comprehensive plan amendment. Mr. Wallace noted that the study session meetings should be posted in compliance with the Open Meeting Law. Chairperson Linnihan asked if the Planning Commission could review the point of sale inspection program. Mr. Wallace suggested that Jack Erskine, Public Safety Director, address the Planning Commission at some time in the future to discuss the issues related to the inspection program. Mr. Wallace reviewed the Chi =Chi's and Lutheran Brotherhood parking situation. LIAISON REPORTS School Board: Commissioner Dmytrenko reported on the school remodeling and renovation projects. She said bids were coming in lower than expected. She said the legislature approved a one time $500,000 payment to the school district to make up for loss of pupils because of the New Ford Town and Rich Acres buyout. She also reviewed the school board election. Community Services Advisory Commission: Commissioner Stokes reviewed the bus tour to review the CIB /CIP projects. She also reviewed a proposed street light utility. HRA: Mr. Wallace reviewed the CSM Proposal and other Phase II proposals. City Council: none. Ad Hoc Traffic Committee: Commissioner Snyder said that a meeting was scheduled for May 25 to review proposals for 76th Street west of I -35W. MAC buyout: Commission Gallagher reviewed the buyout process, stated that the hardship cases were all underway. He said for the most part, homeowners were happy with the purchase offers. Chairperson Linnihan announced that Commissioner Michael Gallagher has submitted a letter of resignation. He stated that it was a pleasure to work with Mike and thanked Mike for all of his hard work on the Commission. Commissioner Gallagher said he was moving to Bloomington. He expressed his gratefulness in getting to serve on the Commission, all thanked all members of the Planning Commission, City Council, and staff. He also said that Richfield was a great place to live. Planning Commission Minutes May 24, 1994 Page 4 ADJOURNMENT M/Gallagher, S /Snyder to adjourn the meeting (8:L5). Motion carried: 6 -0. Planning Commission Secretary PLANNING COMMISSION MINUTES Study Session June 14, 1994 MEMBERS PRESENT: Chairperson Daniel Linnihan; Commissioners: Pamela Dmytrenko, Timothy Erlander, William Snyder, Kristal Stokes, and Paul Wasko MEMBERS ABSENT: Morris Nilsen II and Thomas Scaglia COUNCIL LIAISON: None. STAFF PRESENT: Byron Wallace, Community Development Director; Bill Weaver, City Planner; and Shawn Drill, Zoning Administrator. The study session was called to order by Chairperson Linnihan at 7:05 p.m. ITEM #I Report to Planning Commission on Progress of the Comprehensive Plan Update Commissioner Stokes reviewed progress on the comprehensive plan update by the Steering Committee. She discussed membership and planned events for August. She also said that the plan is taking the shape of a process rather than simply a document. Commissioner Wasko stated that the Steering Committee hopes the result will be more like a "strategic plan ", with the comprehensive plan as an element of the overall plan. The Commissioners reviewed several handouts and photographs that were displayed in the Chambers, which were a result of earlier exercises to help define community strengths and weaknesses. ITEM #H Distribution of Sections 505, 508, and 510 of the Draft Zoning Code Mr. Drill handed out copies of the first three sections of the draft zoning code. Commissioners were asked to read over the materials and make any comments in the margins. The Commission will conduct a review of these sections in July. General discussion followed. Study session minutes June 14, 1994 Page 2 ITEM #III Review of proposed Study Session schedule and site plan lesson Chairperson Linnihan reviewed a proposed schedule and introduced the idea of having staff conduct a site plan lesson for Commissioners over the next 3 -4 months. There was consensus that the schedule and the site plan lesson would be helpful to accomplish the goals of the Commission. ADJOURNMENT The study session was adjourned by unanimous consent at 8:20 p.m. Timothy Erlander Planning Commission Secretary CITY OF R10HRELD Knnnm oommission Action Roqueft Item: #1 Agenda Section: Public Hearing Case: #94 -CUP -3 Date: June 28, 1994 GENERAL INFORMATION Petitioner: New Horizon Child Care Location: 305 East 77th Street (Assumption Church) Type of Request: Conditional Use Permit to allow a day care center for up to 120 children. Zoning: C -2 (general commercial) Land Use: Church Comp. Plan: Institutional References: (see attached Citations section for excerpts) Zoning Code: Section 520.15 - subds. 1 & 2, and Section 515.07 - subds. 1 & 2 specify that day care centers which provide service to more than 12 children are allowable in the C -2 district with a conditional use permit. ACTION Proposed Change: Establishment of a day care center for up to 120 children in the existing school wing of the church. Staff Recommendation: Approve the conditional use permit request with stipulations. HISTORY Public Notice: Notice of the Planning Commission's consideration and public hearing was mailed to all property owners within 350 feet of the subject property. Public Hearing: The Planning Commission will conduct a public hearing on June 28, 1994. City Council: Planning Commission action would set a City Council public hearing date of July 11, 1994. ANALYSIS Proposal: New Horizon currently operates a day care center at St. Richard's Church, 7540 Penn Avenue. A consolidation of Parish schools requires a relocation of the day care center. Under the proposal, New Horizon would trove into the school wing of Assumption Church, which is being vacated by the consolidation. Assumption's school had an enrollment of about 160 students during the 1993 -1994 school year. The request would allow up to 120 children, however, New Horizon anticipates starting out with around 60 children and gradually increasing over the next few years. Issues: Hours of operation would be from 6:30 a.m. to 6:00 p.m. M -F. RECOMMENDATIONS Recommended Action: Preferred: Recommend that the City Council approve the Conditional use permit for New Horizon Child Care at 305 East 77th Street with the following stipulations: 1. That the applicable State license be secured. 2. That all building and fires codes be met. Basis: 1. Adequate on -site parking is available. 2. Adequate play area would be provided per State licensing requirements. 3. The site complies with drainage and landscaping requirements. 4. The designated drop -off and pick -up area is located on -site, close to the entrance door. Alternative: Recommend that the City Council deny the conditional use permit with a finding of fact that the proposal would have an adverse impact on surrounding properties or the City as a whole. I I W W F N r- 1, 1 3nN3Ad ONZ i I it 0 EC51ZZ Z dNol Z P7 r W H- U) U 0 U) c Q W LO O M DO 9 k V OJ O C y d N YY r LMC W S H d' 0 z r N M 11 Y Bit pV% p L 1 V 7— ti r Ile 0 0 r J T' Q 0 s J o o o r W OC p O O ag G Q O Q r O dK J' J r 5 .46 ML. 0 WC V OJ O C y d N YY r LMC W S H d' 0 z r N M 11 TUN- 7-914 T U E 12:21 B U I L D I N G ENV INC P. 0 1 v- Es- Side- of LCAS d- an 50. Side c mil. . 0 i 6. GW aunt k 1 Ex6T 14fbs --c tT, gt.AcK f J\ Kivu Wi a ' f G'dIA 5ox 15 1 lr CITATIONS ZONING CODE: 520.15. C -2 general commercial district. Subdivision 1. Permitted uses. Unless otherwise provided in this code the uses listed in this subsection are permitted in the C -2 district. Subd. 2. A use permitted in an R, MR, R -1, MR -1, MR -2, or an MR -3 district upon compliance with the procedural requirements for such district provided that no one - family, two - family or multiple - family dwelling shall be constructed in this district without first obtaining a conditional use permit therefor in accordance with provisions of section 545. 515.07. Conditional uses. Subdivision 1. The uses listed in this subsection are conditional uses permitted in the R district. Subd. 2. Daycare centers for more than 12 persons licensed by the appropriate governmental authority, group family day care facilities licensed under Minnesota Rules, parts 9502.0315 to 9502.0445 serving more than 14 persons or as otherwise permitted by law. (Amended, Bill No. 1990- 17) CITY OF R10HRELD Knnnm oommission Action Rcquort Item: #2 Agenda Section: Public Hearing Case: #94 -CUP -4 Date: June 28, 1994 GENERAL INFORMATION Petitioner: Hope Presbyterian Church Location' 7132 Portland Avenue South Type of Request: Conditional Use Permit to allow an intermittent homeless shelter as an accessory use. Zoning: R- residential Land Use: Church Comp. Plan: Institutional ACTION Proposed Change: Approval of the conditional use permit would allow Hope Presbyterian Church to join the Interfaith Hospitality Network (IHN), which provides shelter to those in crisis situations for one week each quarter of the year. Staff Recommendation: Approve the conditional use permit request with stipulations. HISTORY Public Notice: Notice of the- Planning Commission's consideration and public hearing was mailed to all property owners within 350 feet of the subject property. Public Hearing: The Planning Commission will conduct a public hearing on June 28, 1994. City Council: On June 13, 1994, Council reviewed the proposed use and determined that it is subject to a conditional use permit. Planning Commission action would set a City Council public hearing date of July 11, 1994. ANALYSIS Proposal: Hope Presbyterian Church, 7132 Portland Avenue, is proposing to join the Interfaith Hospitality Network (IHN). The IHN is a program in which churches and synagogues host homeless families for one week each quarter of the year. The Program provides shelter and.a secure environment for those in crisis situations, as opposed to chronically homeless. In addition, the Program does not serve those actively abusing drugs or alcohol, those with severe mental illness, or those fleeing physical abuse. Social service agencies screen the families before referring them to the IHN. Issues: The families would be housed in classrooms of Hope Presbyterian's school addition, with only one family per room. There would be up to 16 people at a time. The stay would be from Sunday to Sunday. During weekdays, families would be at the Church from about 6:00 p.m to 7:00 a.m. the following day. Days would be spent either at work, school, the activity center, or looking for permanent housing. While at the Church, families Would have use of the Church facilities including the gym, showers, and courtyard. The Church would also provide meals for the families during their stay. The facility has been inspected by the Building, Fire, and Health Divisions. A few minor building improvements would be required to ensure the safety of the families in the IHN Program. Churches are permitted principal uses in the "R" district. Accessory homeless shelters within churches, however, are determined by Council to require a conditional use permit. RECOMMENDATIONS Recommended Action: Preferred: Recommend that the City Council approve the conditional use permit to allow Hope Presbyterian Church to operate an intermittent homeless shelter Interfaith Hospitality Network) with the following stipulations: 1. That the shelter be limited to operate no more than one week during each three month period (maximum four weeks per year). 2. That no more than 16 persons be served by the shelter at one time. 3. That the shelter not serve those actively abusing drugs or alcohol, those with severe mental illness, or those fleeing physical abuse. 4. That meals for those served by the shelter be prepared on -site. 5. That all building, fire, and health codes be met prior to operation. Basis" " 1. The shelter would provide secure housing on a short term basis for those in crisis situations. 2. It appears the shelter would not impose adverse impacts on the neighborhood or the City as a whole. 3. Minor building improvements (e.g., hard wired smoke detectors) are required prior to operation. Alternative: Recommend that the City Council deny the conditional use permit with a finding of fact that the proposed use would have an adverse impact on surrounding properties or the City as a whole. PROPOSED MASTER PLAN - GROUND LEVEL Hope Presbyterian Church, Richfield, Minnesota VI C. NARTHEX—' r LINKAGE YOUTH L SO VENTS MINISTRIES — IT Kk\ - 411 - f. A:wy S C4AGE R E CENTER FA cr 336 MTAL QMW t II ADULT EDUCATION/ MEETING ROOMS II ADMINISTRATIVE OFFICES ADULT EDUCATION/ MEETING ROOMS OUTREACH MINISTRIES ILL W L CITY OF R10HRELD. nnnm oommission Action Requert Item: #3 Agenda Section: Public Hearing Case: #94- APUD -1 Date: June 28, 1994 GENERAL INFORMATION Petitioner: lake Shore Drive Condominium Association Location: 6615 Lake Shore Drive Type of Request: Amend final development plan and conditional use permit Zoning: PMR (planned multi - family residential) Land Use: Condominium complex (1 I stories) Comp. Plan: Central business district References: (see attached Citations section for excerpts) Zonine Code: Sections 530.29 and 530.41 regulate the PUD amendment process. ACTION Proposed Change: Installation of balcony screening enclosures for those condominium owners who want it. Staff Recommendation: Approve the amendment to the final development plan and conditional use permit for Lake Shore Drive Condominiums with stipulations. HISTORY Public Notice: Notice of the Planning Commission's consideration and public hearing was mailed to all property owners within 350 feet of the subject property. Public Hearing: The Planning Commission will conduct a public hearing on June 28, 1994. City Council: Planning Commission action would set a City Council public hearing date of July 11, 1994. ANALYSIS Proposal: Lake Shore Drive Condominium Association is requesting to amend their approved site plan to allow screening of balconies for those owners who want it. About 10 owners are currently interested in having the screens installed.. Blanket approval is being requested, however, to allow all owners the option to screen their balconies without further PUD review. Last summer, the Planning Commission reviewed and approved a similar request from Woodlake Point Condominiums, 6500 Woodlake Drive. As a result of the success of the Woodlake Point project, Lake Shore Drive owners are requesting balcony screening as a means to improve their. building. The condominium owners believe screening will make their balconies more functional and enjoyable, eliminating pigeon and insect problems. RECOMMENDATIONS Recommended Action: Preferred: Recommend that the City Council approve the amended final development plan and conditional use permit to allow installation of balcony screening enclosures for those owners who want them, with the following stipulations: 1. That all screens comply with the specific installation criteria, as outlined in the application. 2. That blinds, drapes, shades, or other similar items not be hung on the screens. 8aSiS: 1. The screening enclosures would help to solve pigeon and insect problems, making balconies more functional and enjoyable . 2. The screening enclosures are designed to be identical looking and of high quality materials so they do not compromise the visual appearance of the building. The screening and frame would be mounted inside the balcony railing to maintain the rhythm of the facade. 3. The frame for the screening enclosure would be constructed of bronze colored anodized aluminum to match the existing window frames. 4. The frame would be rigidly attached to the balcony floor and would provide drain holes to dispose of trapped water. 5. The screens would not be operable, however, they would be removable with special tools. 6. The black fiberglass screening material would be tightly knit to prevent as much snow sift as possible. 7. Blanket approval would allow additional units to be screened in the future without further PUD review, however, all individual screening enclosures would require a building permit from the City prior to installation. Alternative: Recommend that the City Council deny the request with a finding of fact that the proposal would have an adverse impact on surrounding properties or the City as a whole. CITATIONS' ZONING CODE: 530.29. Compliance with the PUD plan and final development plan. Subdivision 1. Changes. The development of the PUD district shall be in substantial compliance with the approved PUD plan, the approved final development plan and any conditions imposed by the council. Compliance shall not be considered substantial if there is: a) more than ten percent change in floor area in any one structure; b) more than a ten percent change in the original approved separation of buildings; c) any change in the original approved setbacks from property lines; d) more than five percent change in the ground area covered by the building; or e) any change in the ratio of off - street parking and loading space to gross floor area in the building. Subd..2. Building permits. A building permit may not be issued for a structure within the PUD district until the director certifies that the structure conforms to the provisions of the PUD plan, the final development plan and any other conditions imposed by the council. Upon approval by the director, the building permit application along with the appropriate information required for building permits shall be submitted to the building official who shall process the building permit in conformance with the building code. 530.41. Amendment of conditional use permit. Amendment to a conditional use permit issued for land within a PUD district shall be by two- thirds vote of the council. The council may hold such hearings on a proposal to amend a conditional use permit as it may consider necessary; but at least one public hearing shall be held. The council may consider all factors considered in connection with rezoning the PUD district and issuing conditional use permits therefor as well as any other factors relevant to the public health, safety, morals, comfort, convenience or welfare and to the protection of property or improvements in the neighborhood. CITY OF R10HRELD nnnnm commission Item: #4 Agenda Section: New Business PC Letter: #13 Date: June 28, 1994 GENERAL INFORMATION Subject: The Richfield Housing and Redevelopment Authority (HRA) requests that the Planning Commission consider a modification to the Richfield Rediscovered Redevelopment and Tax Increment Financing Plans. Type of Request: Consideration of compliance with the City Comprehensive Plan for: 1) acquisition and disposition of Richfield Rediscovered property, and 2) Richfield Rediscovered Redevelopment and Tax Increment Financing Plans. References: Chapter 462 of the Minnesota State Statute requires that whenever any public agency acquires or sells property in the City, the Planning Commission must review the proposed acquisition or sale for consistency th the City's Comprehensive Plan. State Statute also requires Planning Commission review of Redevelopment and Tax Increment Financing Plans for consistency with the City's Comprehensive Plan. BACKGROUND Purpose: Richfield Rediscovered acquires substandard and obsolete housing followed by replacement with larger market rate housing units. New substandard properties, presently being offered by voluntary sellers are identified in Project Area A and Project Area B. Public Notice: Not required for a finding of this type. City Council: A public hearing is scheduled for July 25, 1994. ANALYSIS Issues: All sites identified in the Plans are presently zoned and used for single family residential purposes. The Planning Commission is being asked to determine whether the acquisition and*disposition as residential property is consistent with the Comprehensive Plan. RECOMMENDATION Recommended Action: Preferred: Adopt the attached resolutions which make a finding that: 1. The acquisition and disposition of property for Richfield Rediscovered is consistent with the Comprehensive Plan. 2. The Richfield Rediscovered Redevelopment and Tax Increment Financing Plan are consistent with the Comprehensive Plan. Basis: 1. Richfield Rediscovered is a proven redevelopment program. Qualifying redevelopment sites have been identified within the specified areas. 2. The Planning Commission is required to review the Plan Modification to determine consistency with the Comprehensive Plan. 3. The Comprehensive Plan designates all the identified sites as either single family" or "medium density buffer ". Both of these designations permit single family residential use. 4. There is a market of owners who wish to voluntarily sell their obsolete or substandard homes. 5. There is a builder and buyer market for new larger homes in Richfield. 6. A source of funding is available to implement the Program. 7. A cash flow analysis indicates that the Program continues to be self - supporting excluding staff costs which are covered by the New Home Program. 8. Existing staff resources are available to administer the Program. 9. Legal Counsel has reviewed the program and related documents and found them to be in compliance with existing laws. Alternative: Find that the Program and Plans are not consistent with the Comprehensive Plan. However, this would appear to require amending the Comprehensive Plan. RESOLUTION NO: RESOLUTION OF THE RICHFIELD PLANNING COMMISSION FINDING THAT THE ACQUISITION AND DISPOSITION OF PROPERTY IS IN COMPLIANCE WITH THE COMPREHENSIVE PLAN WHEREAS, the Planning Commission has reviewed the acquisition of property associated with the Richfield Rediscovered Housing Program Modification No. 3, which are located within Redevelopment Project Area "A" and Redevelopment Project Area "B ", as described in Attachment A and B, respectively, attached hereto and hereby made a part hereof, and WHEREAS, the Planning Commission has found that the acquisition and disposition of the property would serve a public purpose, and WHEREAS, the Planning Commission has found that the acquisition and disposition for single family residential purposes of the property would be consistent with the City's Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission finds the acquisition and disposition of the property described in Attachments A and B for single family residential use to be in conformance with the City's Comprehensive Plan. Passed this 28th day of June, 1994 by the Planning Commission of the City of Richfield, Minnesota. PLANNING COMMISSION CITY OF RICHFIELD, MINNESOTA Daniel Linnihan, Chairperson ATTEST: Timothy Erlander, Secretary ATTACHMENT A RICHFIELD REDISCOVERED HOUSING PROGRAM ACQUISITION PROPERTY LOCATED IN REDEVELOPMENT PROJECT AREA "A" MODIFICATION NO. 3 PROPERTY ADDRESS PID NUMBER 7216 -'1st Avenue South 34- 028 -24 -13 -0094 6616 - 2nd Avenue South* 27- 028 -24 -42 -0064 7416 - 4th Avenue South 34- 028 -24 -41 -0053 6900 - 13th Avenue South 26- 028 -24 -43 -0073 6321 - 14th Avenue South 26- 028 -24 -12 -0093 6500 - 14th Avenue South 26- 028 -24 -13 -0132 6928 - 14th Avenue South 26- 028 -24 -43 -0069 6404 - 15th Avenue South* 26- 028 -24 -13 -0052 6432 - 15th Avenue South 26- 028 -24 -13 -0059 6435 - 15th Avenue South 26- 028 -24 -13 -0043 6504 - 15th Avenue South 26- 028 -24 -13 -0076 7525 Aldrich Avenue South 33- 028 -24 -41 -0164 7344 Bryant Avenue South 33- 028 -24 -14 -0047 6825 Elliot Avenue South* 26- 028 -24 -34 -0085 6828 Elliot Avenue South 26- 028 -24 -34 -0135 7525 Girard Avenue South* 33- 028 -24 -42 -0094 7537 Girard Avenue South 33- 028 -24 -42 -0091 7025 Nicollet Avenue South* 34- 028 -24 -12 -0022 6820 Portland Avenue South 27- 028 -24 -44 -0006 7211 Portland Avenue South+ 35- 028 -24 -23 -0002 7520 Portland Avenue South 34- 028 -24 -41 -0021 6608 Stevens Avenue South* 27- 028 -24 -42 -0073 6625 Stevens Avenue South 27- 028 -24 -42 -0095 Property moved from Cycle II acquisition list to the Cycle III acquisition list. Double Lot. ATTACHMENT B RICHFIELD REDISCOVERED HOUSING PROGRAM ACQUISITION PROPERTY LOCATED IN REDEVELOPMENT PROJECT AREA "B" MODIFICATION NO. 3 PROPERTY ADDRESS PID NUMBER 1908 West 66th Street* 28- 028 -24 -23 -0125 6300 Aldrich Avenue South* 28- 028 -24 -11 -0041 6404 Humboldt Avenue South 28- 028 -24 -24 -0002 6440 Humboldt Avenue South 28- 028 -24 -24 -0009 6318 Knox Avenue South 28- 028 -24 -21 -0107 6821 Logan Avenue South 28- 028 -24 -34 -0050 6845 Newton Avenue South 28- 028 -24 -33 -0018 6320 Oliver Avenue South 28- 028 -24 -22 -0122 6539 Oliver Avenue South* 28- 028 -24 -23 -0092 7015 Penn Avenue South* 33- 028 -24 -22 -0003 7021 Penn Avenue South* 33- 028 -24 -22 -0004 6236 Pleasant Avenue South 27- 028 -24 -22 -0056 6824 Queen Avenue South 29- 028 -24 -44 -0024 6933 Queen Avenue South 29- 028 -24 -44 -0170 6645 Upton Avenue South* 29- 028 -24 -42 -0015 7332 Upton Avenue South+ 32- 028 -24 -13 -0059 Property moved from Cycle II acquisition list to the Cycle III acquisition list. Double Lot. RESOLUTION NO. RESOLUTION OF THE RICHFIELD PLANNING COMMISSION REGARDING MODIFICATION TO THE REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS RELATED TO THE RICHFIELD REDISCOVERED HOUSING PROGRAM WHEREAS, it is the intent of the Housing and Redevelopment Authority in and for the City of Richfield (the "HRA ") and the City of Richfield (the "City ") 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 house families seeking larger housing units with features popular in today's market; and WHEREAS, this type of housing would encourage existing residents seeking this type of housing to remain in Richfield and attract new residents as well; and WHEREAS, in order to realize these objectives, certain plans have been prepared for the HRA with the cooperation and assistance of the appropriate city departments, planning consultants, and fiscal consultants, all arising from an April 18, 1994 HRA directive and endorsement to proceed with the Richfield Rediscovered Housing Program (the "Housing Program "); and WHEREAS, in April, 1994 additional funds were provided to continue this Housing Program; and WHEREAS, on June 20, 1994, the HRA determined that certain modifications were necessary to the previously approved and created Redevelopment Project Area A and Redevelopment Project B and Tax Increment District A -2 and Tax Increment District B -2 Plans; and WHEREAS, in order to implement the continuation of the Housing Program to guide development, redevelopment, and new construction of single family residential housing within Redevelopment Project Area "A" (Project Area "A ") and Redevelopment Project Area "B" Project Area "B ") (collectively, the "Project Areas "), the HRA has prepared and approved Modification No. 3 to the Redevelopment Plans for Project Area "A" and Project Area "B ", made modifications to Tax Increment District A -2 and B -2, and approved the establishment of a new Tax Increment Financing District A -3 and Tax Increment Financing B -3'in Tax Increment Financing Plans for Tax Increment Financing District A -3 (Tax Increment District "A -3") and Tax Increment Financing District B -3 (Tax Increment District "B -2 ") (collectively, the "Plans ") pursuant to Minn. Stat. Sec. 469.001 - 469.047 (the "HRA Act ") and Minn. Stat. Sec. 469.174 - 469. 179, inclusive, as amended (the "TIT Act "); and Resolution No. Page 2 WHEREAS, the HRA has now transmitted the Plans to the Planning Commission of the City of Richfield (the "Planning Commission ") for its review, and has requested the written opinion of the Planning Commission on the Plans, all pursuant to the TIF Act; and WHEREAS, the Planning Commission has now reviewed and considered said Plans of the Housing Program and Tax Increment Financing Plans. NOW, THEREFORE, BE IT RESOLVED, the City Planning Commission having reviewed and considered the Plans, the Planning Commission, by this resolution, advises the City Council, the HRA and all interested persons, that it is the opinion of the Planning Commission that: 1. ' The Plans provide an outline for the development, redevelopment, and new construction of the single family residential homes within the Project Areas and are sufficiently complete to indicate the relationship of the Plans to the objectives of the City of Richfield as to appropriate land use within the Project Areas, and to indicate the general land uses and general standards of development, redevelopment, and new construction within the Project Areas. 2. The objectives and purposes of the Plans, specifically the recommendation to continue single family residential use within the context of the expanded Housing Program, conform to and are consistent with the general land use proposals and planning objectives of the City of Richfield's Comprehensive Plan. 3. The Planning Commission recommends the City Council hold public hearings to adopt and implement the Plans. Passed this 28th day of June, 1994 by the Planning Commission of the City of Richfield, Minnesota. PLANNING COMMISSION CITY OF RICHFIELD, MINNESOTA Daniel Linnihan, Chairperson ATTEST: Timothy Erlander, Secretary THE RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS Housing and Redevelopment Authority in and for the City of Richfield, Minnesota MAYOR Martin J. Kirsch CITY COUNCIL Michael Sandahl, Council Member At Large Susan Rosenberg, Ward I Russ Susag, Ward 2 Donald Priebe, Ward 3 HOUSING AND .REDEVELOPMENT AUTHORITY Thomas Harms, Chairperson Joan Helmberger, Vice - Chairperson Vern Luettinger, Secretary Russ Susag, Member Michael Sandahl, Member CITY MANAGER/EXECUTIVE DIRECTOR James D. Prosser PLANNING COMMISSION Daniel Linnihan, Chairperson Kristal Stokes, Vice Chairperson Timothy Erlander, Secretary Pamela Dmytrenko, Member Michael Gallagher, Member Morris Nilsen, A Member Thomas Scaglia, Member William Snyder, Member Paul Wasko, Member CITY STAFF Byron Wallace . Director, Community Development Bruce Palmborg Housing d Redevelopment Coordinator Katia Medvetsla Redevelopment Specialist Bruce Nordquist Housing Supervisor Pamela Rohne Housing Specialist CONSULTANTS John B. Dean Ronald L. Batty HRA Legal Counsel Holmes & Graven, Chartered Minneapolis, MN Sidney Inman Mark Ruff Publicorp, Inc. Minneapolis, MN NOTE TO READER The Richfield Rediscovered Housing Program (the "Housing Program ") is organized in cycles based on HRA acquisition and redevelopment activities. The original housing program, initially entitled the "Expanded New Home - Scattered Site Housing.Program ", established two redevelopment project areas, Project Area A and Project Area B. Within each project area, tax increment financing districts were created based on a list of properties which the HRA would contemplate to acquire and redevelop for the Housing Program. An alpha- numeric organizational system was implemented to the various tax increment districts and subsequent modifications. Redevelopment project areas are represented by an alphabetical letter, either an "A" or "B ", while tax increment financing districts are represented by an alpha- numeric combination. The alphabetical component represents the geographical project area and it's numerical component represents the cycle year for which a tax increment district was created. For example, "A -]" is representative of the list of tax increment parcels within redevelopment project area A during the first cycle year of the Housing Program. Subsequent'tax increment districts are be labeled as "A- 2" for the second cycle of parcels for the Housing Program, "A -3" for the third, and so on. This also holds true for redevelopment project area B. On June 14, 1993, the City Council approved the HRH's modification to the Housing Program of 1992. The purpose of this modification was to establish one project area, the Richfield Redevelopment Project Area, composed of various existing project areas and tax increment districts. By doing so, the Richfield Redevelopment Project Area would serve as an umbrella entity and provide greater efficiency in financing redevelopment activity costs while including areas outside of the HRH's operating area. In order to maintain a numerical system to the housing program's modifications, the June 14, 1993 modification is considered to be the second major modification to this housing program. The text contained within the. following modified housing program is, therefore, considered to be the modification. Goals and objectives of the overall housing program remain the same. Substantive changes to the housing program include the list of properties identified for acquisition and program implementation and a boundary change for Redevelopment Project Area B. The reader is encouraged to review the original housing program plans and modifications located within the following reference plans: Origin al.Richfield Redevelopment Housing Program formerly knows as the Master Plan for the Expanded New Home - Scattered Site Housing Program) for Redevelopment Project Area "A" and Tax Increment Financing District "A -1" and Redevelopment Project Area "B" and Tax Increment Financing District "B -l" Dated July 16, 1990 Richfield Rediscovered Housing Program Modification No. l to the Redevelopment Plan for Redevelopment Project Area "A" and Modification No. l to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A -l" and Tax Increment Financing Plan for Tax Increment Redevelopment District "A -2" Dated July 20, 1992 Richfield Rediscovered Housing Program Modification No. 1 to the Redevelopment Plan for Redevelopment Project Area "B" and Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B -1" and Tax Increment Financing Plan for Tax Increment Redevelopment District "B -2" Dated July 20, 1992 Richfield Redevelopment Project Plan and Tag Increment Financing Plan Dated June 14, 1993 The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 3 to the Redevelopment Plan for Redevelopment Project Area "A" Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A -2" Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" All Related to the Richfield Rediscovered Housing Program Dated: June 20, 1994 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 612) 861 -9760 Modification No. 3 to the Redevelopment Plan for Redevelopment Project Area "A" TABLE OF CONTENTS Part I. Richfield Rediscovered Housing Program Modification No. 3 Redevelopment Plan for Redevelopment Project Area "A" PART I - REDEVELOPMENT PLAN Original Plan Page Modification No. 3 Pa e A. Statement of Public Purpose l B. Statutory Authority l C. Descri tion of Redevelopment Project Area 2 D. Statement of Goals and Objectives 3 E. Develo ment Activities and Agreements 4 F. Pro osed Land Use 6 G. Ac uisition and Relocation Activities- 6 A -1 H. Environmental Considerations 7 I. Redevelopment Plan Modification 7 J. Administration of Redevelopment Project 7 A -i Part 1. Modification No. 3 Redevelopment Plan for Redevelopment Project Area "A" G. Acquisition and Relocation Activities 1. Acquisition As a means of comprehensively formulating Cycle III of the Richfield Rediscovered Housing Program, HRA staff identified property for acquisition in two ways. The first involved contacting and surveying residential property owners that have in the past expressed interest in the voluntary sale of their property. The second involved property owners contacting the HRA requesting that.their property be considered for the program. Properties that were considered candidates for the program were then further evaluated for program eligibility and inspected. The following properties are identified for acquisition under Cycle III of the program: PROPERTY.ADDRESS PID NUMBER 7216 - 1 st Avenue South 34- 028 -24 -13 -0094 6616 - 2nd Avenue South* 27- 028 -2442 -0064 6900 - 13th Avenue South 26- 028 -2443 -0073 6321 - 14th Avenue South 26- 028 -24 -12 -0093 6500 - 14th Avenue South 26- 028 -24 -13 -0132 6928 - 14th Avenue South 26- 028 -2443 -0069 6404 - 15th Avenue South* 26- 028 -24 -13 -0052 6432 - 15th Avenue South 26- 028 -24 -13 -0059 6435 - 15th Avenue South 26- 028 -24 -13 -0043 6504 - 15th Avenue South 26- 028 -24 -13 -0076 7525 Aldrich Avenue South 33- 028 -24 -41 -0164 7344 Bryant Avenue South 33- 028 -24 -14 -0047 6825 Elliot Avenue South* 26- 028 -24 -34 -0085 6828 Elliot Avenue South 26- 028 -24 -34 -0135 7525 Girard Avenue South* 33- 028 -24 -42 -0094 7537 Girard Avenue South 33- 028 -24 -42 -0091 7025 Nicollet Avenue South* 34- 028 -24 -12 -0022 6820 Portland Avenue South 27- 028 -24 -44 -0006 7211 Portland Avenue South+ 35- 028 -24 -23 -0002 7520 Portland Avenue South 34- 028 -24 -41 -0021 6608 Stevens Avenue South* 27- 028 -24 -42 -0073 6625 Stevens Avenue South 27- 028 -24 -42 -0095 Property moved from Cycle II acquisition list to the Cycle III acquisition list. Double Lot. A -1 Under Cycle III, the property listed in the following table (formerly part of the Cycle II property list) is hereby removed from the acquisition list for Redevelopment Project Area A. This property may be considered for future program acquisition. (Also note that this property is identified for removal from the list of properties for Tax Increment District "A -2 ") PROPERTY ADDRESS PID NUMBER 7416 - 4th Avenue South 34- 028 -24-41 -0053 6525 - 15th Avenue South 26- 028 -24 -13 -0110 7432 Aldrich Avenue South 33- 028 - 2441 -0026 6800 Portland Avenue South 27- 028 -24 -44 -0001 A -2 Modification No. I to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A -2" TABLE OF CONTENTS Part D. Richfield Rediscovered Housing Program Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A -2" PART I - TAX INCREMENT PLAN Original Plan Page Modification No. 1 Page A. Statutory Authority 7 B. Statement of Objectives 7 C. Develo ment Program 7 D. Description of Property in the Tax Increment Financing District 9 A -2 -1 E. Classification of the Tag Increment Financing District 9 F. Parcels in Acquisition 10 A -2 -1 G. Estimate of Costs 11 H. Estimated Amount of Obligated Funds 11 I. Sources of Revenue 11 J. Original Tax Capacity 12 K. Estimated Captured Tax Capacity 12 L. Duration of the District 12 M. Estimated Impact on Other Taxing Jurisdictions 13 N. Modifications of the Tax Increment Financing District 13 0. Limitation on Administrative Expenses 13 P. Limitation on Duration of Tax Increment Financing Districts 13 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement 13 R. Limitation of the Use of Tax Increment 14 S. Notification of Prior Planned Improvements' 14 T. Excess Tax Increment 15 U. Restrictions on Pooling; Five Year Limit 15 V. Assessment Agreements 17 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account 17 X. Annual Disclosure Requirements 18 Y. Assum tions 18. Z. Municipal Findings 18 A -2 -i A -2 -ii Modification PART D - TAX INCREMENT PLAN Original Plan No. 1 Page Page Appendix A: Ma - Redevelopment Project Area "A" 23 Appendix B: Property in the Tax Increment Redevelopment District "B -2" 25 A22endix A -2 -1 Appendix C: Estimate of Tax Increments 26 A endix D: Tax Increment Financing Budget 27 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions 28 A -2 -ii Part I. Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A -2" D. Description of Property in the Tax Increment Financing District The property listed within Appendix B is the final list of property which was acquired for program purposes. See "Section F. Parcels in Acquisition" below for properties removed from the acquisition list due to unresponsiveness or undesire to further participate in the program. F. Parcels in Acquisition The properties listed below (formerly part of the Cycle Il property list) have been identified for removal from the acquisition list and from Tff District "A -2 ". The removal of this property is a program objective under Cycle III of the Richfield Rediscovered Housing Program. This property may be considered for program acquisition at some future date and incorporated back into the Richfield Rediscovered Program under a separate program modification. PROPERTY ADDRESS PID NUMBER 7416 - 4th Avenue South 34- 028 -24 -41 -0053 6525 - 15th Avenue South 26- 028- 24 -13 =01 10 7432 Aldrich Avenue South 33- 028 -2441 -0026 6800 Portland Avenue South 27- 028 -24-44 -0001 A -2 -1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A -2" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY" 7112 - l st Avenue South 28- 028 -24 -12 -0096 1,431 6634 - 4th Avenue South 27- 028 -24-41 -0052 488 7245 - 12th Avenue South 35- 028 -24 -13 -0001 522 6225 - l4th Avenue South 26- 028 -24 -34 -0071 1,011 6844 - l4th Avenue South 26- 028 -2443 -0056 498 6310 - 15th Avenue South 26- 028 -24 -12 -0077 1,277 7500 Bryant Avenue South 33- 028 -2441 -0106 1,882 7520 Bryant Avenue South 33- 028 -24 -41 -0110 428 7528 Bryant Avenue South 33- 028 -24-41 -0112 441 6926 Chicago Avenue South 26- 028 -24 -33 -0028 410 7021 Nicollet Avenue South 34- 028 -24 -12 -0023 535 Original net tax capacity shown represents values of record for taxes payable in 1992, as stated in the 1992 plans. Appendix A -2 -1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" A -3-i PART I - TAX INCREMENT PLAN Page No. A. Statutory Authority A -3 -1 B. Statement of Objectives A -3 -1 C. Development Program A -3 -1 D. Description of Property in the Tax Increment Financing District A -3 -2 E. Classification of the Tax Increment Financing District A -3 -2 F. Parcels in Acquisition A -3 -3 G. Estimate of Costs A -3 -3 H. Estimated Amount of Obligated Funds A -34 I. Sources of Revenue A -3 -4 J. Original Tax Capacity A -3 -4 K. Estimated Captured Tax Capacity A -3-4 L. Duration of the District A -3 -5 M'. Estimated Impact on Other Taxing Jurisdictions A -3 -5 N. Modifications of the Tax Increment Financing District A -3 -5 O. Limitation on Administrative Expenses A -3 -5 P. Limitation on Duration of Tax Increment Financing Districts A -3 -5 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement A -3 -5 R. Limitation of the Use of Tax Increment A -3 -6 S. Notification of Prior Planned Improvements A -3 -6 T. Excess Tax Increment A -3 -6 U. Restrictions on Pooling; Five Year Limit A -3 -7 V. Assessment Agreements A -3 -9 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account A -3 -9 X. Annual Disclosure Requirements A -3 -9 Y. Assumptions A =3 -10 Z. Municipal Findings A -3 -10 A -3-i A -3 -ii PART I I - TAX INCREMENT PLAN Page No. Appendix A: Map - Redevelopment Project Areas "A" and "B" and and Tax Increment Financing Districts "A -3" and "B -3" Appendix A -3 -1 Appendix B: Property in the Tax Increment Redevelopment District "A -3" Appendix A -3 -3 Appendix C: Estimate of Tax Increments Appendix A -3 -4 Appendix D: Tax Increment Financing Budget Appendix A -3 -5 Appendix E: Estimate of Impacts.on Other Taxing Jurisdictions Appendix A -3 -6 A -3 -ii Part 13. Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "A -3 ") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "A" (Project Area "A ") for the Richfield Rediscovered 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 continue to seek and affirm the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "A ", dated July 16, 1990 as well as additional program objectives set forth in HRA Letter No. 13, dated April 20, 1992. C. ' Development Program 1. Description of Development Activities As with previous cycles of the housing program and so with Cycle III, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The HRA will assist prospective developers, builders, and buyers with development, redevelopment, new construction, and other related activities within the context of the modified Redevelopment Plan for Redevelopment Project Area "A ", this Tax Increment Plan, and other related guidelines. 2. Development Activities Covered by Contract At this writing, early negotiations for property acquisitions are proceeding between HRA staff and owners by two, Cycle III properties located in TIF District "A -3 ".. Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon HRA Board and City Council approval. A -3 -1 3. Other Development Not Under Contract Reasonably Expected to Occur in the Pr" oiect. Proposals from prospective developers, builders, and buyers will be required to be submitted to the HRA as part of the review process. The following activities may be expected to occur: I . 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 III of the Housing Program, a total of 38 properties have been identified for program participation and acquisition. Twenty -two (22) of the properties are located within Redevelopment Project Area "A" while the remaining sixteen (16) are within Redevelopment Project Area 'B ". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Area A and B each contain one (1) property with a double lot. Property subdivisions will be required for both lots in order to construct two homes on each site. Initial construction for Cycle III is anticipated to begin in the last quarter of 1994. Construction for each home is anticipated to be approximately 150 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 -3" 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 Tax Increment District "A -3" to be established within Project Area "A" is a redevelopment tax increment financing district as defined in Minn. Stat., Sec. 469.174, subd. 10. 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 -3 -2 A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle III" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division, for the duration of the tax increment district's life. F. Parcels in Acquisition The following property has been identified for acquisition in Cycle III of the Housing Program: PROPERTY ADDRESS PEI) NUMBER 7216 - 1st Avenue South 34- 028 -24 -13 -0094 6616 - 2nd Avenue South* 27- 028 -24-42 -0064 6900 - 13th Avenue South 26- 028 -24 -43 -0073 6321 - l4th Avenue South 26- 028 -24 -12 -0093 6500 - 14th Avenue South 26- 028 -24 -13 -0132 6928 - 14th Avenue South 26- 028 -2443 -0069 6404 - 15th Avenue South* 26- 028 -24 -13 -0052 6432 - l5th Avenue South 26- 028 -24 -13 -0059 6435 - 15th Avenue South 26- 028 -24 -13 -0043 6504 - 15th Avenue South 26- 028 -24 -13 -0076 7525 Aldrich Avenue South 33- 028 -24 -41 -0164 7344 Bryant Avenue South 33- 028 -24 -14 -0047 6825 Elliot Avenue South* 26- 028 -24 -34 -0085 6828 Elliot Avenue South 26- 028 -24 -34 -0135 7525 Girard Avenue South* 33- 028 -24 -42 -0094 7537 Girard Avenue South 33- 028 -24 -42 -0091 7025 Nicollet Avenue South* 34- 028 -24 -12 -0022 6820 Portland Avenue South 27- 028 -24 -44 -0006 7211 Portland Avenue South+ 35- 028 -24 -23 -0002 7520 Portland Avenue South 34- 028 -2441 -0021 6608 Stevens Avenue South* 27- 028 -24 -42 -0073 6625 Stevens Avenue South 27- 028 -2442 -0095 Property moved from Cycle II acquisition list to the Cycle III acquisition list. Double Lot. The tax increment district budget includes acquisition costs for land sale subsidy which will be offered to eligible developers, builders, and buyers 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. A -3 -3 H. Estimated Amount of Obligated Funds At the current time, an additional $700,000 of program revenue is available under Cycle III to continue the housing program. 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 an allocation from the development account. In addition to this allocation, 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. l and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "A =3" is based on the January 2, 1992 assessed value placed on the property by the county assessor. The OTC for the district is $14,523. (See Appendix B, Property Located in Tax Increment Financing District "A -3 ".) 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 increase 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 Tax Increment District "A -3" is within a range of 314 to $1,709 per home. The total CTC for the 23 new homes to be located within Redevelopment Project Area "A" ranges from $7,222 to $39,307. 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.) A -3 -4 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 BRA; 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., 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 my 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 A -3 -5 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 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 of 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 proceeding 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 A -3 -6 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 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 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 given: district: In accordance with Minn. Stat., Sec. 469.1763, the following terms have the meanings 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 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 A -3 -7 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 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. 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. A -3 -8 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 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. X. Annual Disclosure Requirements Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before March l 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; A -3 -9 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 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 Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle III" which will be on file at City Hall,_Community Development Department, Housing and Redevelopment Division , for the duration of the tax increment district's life. 2. The proposed activities listed in this plan, in the opinion of the ERA, 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 interested developers, builders, or buyers could not construct the aforementioned improvements; and without A -3 -10 the use of tax increments or other revenues authorized by this plan to assist with the financing of the activities, interested developers, builders, or buyers 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 the continuation of the Richfield Rediscovered Housing 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. A -3 -11 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "A" AND TAX INCREMENT FINANCING'DISTRICT "A -3" APPENDIX A MAP REDEVELOPMENT PROJECT AREAS "A" AND "B" AND TAX INCREMENT FINANCING DISTRICTS "A -3" AND "B -3" Appendix A -3 -1 O Z-£_`d xlpuaddd O O N ti -1 y ti -1 ti _• y y T. -1 N ti y XERXES 'AVE . 1 XERXES AVEf WASIIBURN 1 II III . I 1 II ) I I I I I I I I j I [ ' III I I I I II I ' wA SNBUR N VINCENT VINCENTTl UPTON, I II I II II iI II II it .._... I UP70N THOMAS 1 it Ili II II IP q I 1, IL_ - II C Irf TIIOYAS SIIERIDAN I' IL ___ _ _ _ II ,' __II: _. SIIERIOAH RUSSELL OuEEIi I I I RUSSELL IF IJ1 I, t jI . lf— _ ll II I Y II II1— _ JIII lIf I II I UN r_lq PE NN AVEAVE. – II — G - 11 OLIvER OLIVER jL— NEW 101/ I :II :.1 r ;_1 a tl II II` III I -_II'----1f- MORGAN YORGIN a LOG.N 1 LOGAN XNOX _ - II _l I I_1 _ Z II II. _ .II II__.II__Jf _ICS XNOX DAMES .. II... II _ -1f. II. _ - ill 1[ - 1L ll_ ,.YES Im TRYING C -! _ =- zr- -_.._ _ L.flLsolnllpn rl (JI l..1 i. CL IIUYe01 DT - - -' - ) HUMBOI D1 m GIRARO .,' ' I — _ _ `— ! /.. -. . . - -. 1 11 — II —_ (_ LL1L I / I GIRARO EREMONi i FREMONT EMERSON 11 { j n I I I =- -] j I j IfL L I EMERSON O DUPONT 1 UDUPNT R COLFAX I' COLFAX BRYANi I I'!II .._ --J7L jIIL_ I 11. ._ (/' \ J _1: I if_ I P II I JC— ° LLP a / / 111i c III eRrANr ALDRICN i -I 'S \b, I J -, I ALORICH I X71- i.___L__ I —I__! II . _ lTHOALE AVE II M - - /1' , LVHDALE AVE wanELD •,II GA Rr1EL0 HARRI[i —II Y, I• I r_' HARRIET GRAND VIII 1II ( II I .. _1f I- _. JLI lI I II GRANDmPLEASANT I.. J._ L- Ify_` II,_., .- I_' _ II IL I.- s_.IF - J .._.J 7 Yt =7 --- - 1r y` ' - - - HT t LEASAHt m PnLSeunr ' I `1C G_II_ll l`_ II 11 P"LSBUnt WENTWORTII WENT WORTH i w 1L1fL I I I I I ' '°__ ' 1III r L_.. =-_ lC f :_ -- _IIIf I — _.: I I — ._ ' - III I . ( I I II I 1f 1 = BLAISDELI ; IB. L1 AISDEL L f= f_- 1F 1 =0lIl HICOLLET AVE IL 1 ='L _ NICOLLET AVE STEVENS 1=17-D r - I [ STEVENS I . If _ —lI [ CI zAe Ira f — I _11,__,11___- II- _If III- II .- Imo: I I 1 / i,d CLINTON II ..= JUI - I[_1I _ g II,__ -II - -_ I. C'1 II^ -II CL IN TON Am if _J 1I1.___II I(.. __ II =lUf- j- w I ' SIA , - - -I I _I - I Icy — - - I Sob i7 _II :- IL 1F1. _: If. J. II ,.1 I _I __ PORTLAND AVEPORTLANDAVE GAILAHn r' — I (= 1L C I I moI I I11 ( = III ( IIlf = lllf I iJill: _ I OALAD _ PARK rARR COW YBUS L - r I• COL WBUS if CHIC 1 n1G1O f IIC -11( C - 11 I I II I II . C AG O ELLIOT ELLIOT IO1A II. II __ 1D1. It IA -; j U 1 [ I i - - - 1 IL`.- 1 : lI ffIL__... :- - - 71l1lI L! lf-._,_ . _ ._ 1I I_ C1 1 _ . p , -- rI _ -- jr L I . .. IIIIII I I II _ - ._.-. IIIIIIII rIf IL-.. lIIIII l rI II I J) 1II II [ [I lII I C= I .- _II= C l I L ] 1 1III CL I- 7Cl I _ II I I. IA ' BLOOMINGTON BLOOMINGTON ' Took II , Is u _ CEDAR AVE AVE -- -_= LONCr ELLO11l - - -- , __r___.rti -. -Y -- 11 1- - -_ Y i - 10N 1 LLOw A 191A Aa s o d - II I Il C —JL_l to1A p 2 I( D tI tl z; STAN01S11 0 ` III C O - --- - 231A 4 z APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A -3" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY" 7216 - 1st Avenue South 34- 028 -24 -13 -0094 1,265 6616 - 2nd Avenue South* 27- 028 -24-42 -0064 520 6900:- 13th Avenue South 26- 028 -2443 -0073 1,311 6321 - l4th Avenue South 26- 028 -24 -12 -0093 610 6500 - l4th Avenue South 26- 028 -24 -13 -0132 590 6928 - 14th Avenue South 26- 028 -24 -43 -0069 500 6404 - l5th Avenue South* 26- 028 -24 -13 -0052 470 . 6432 - l5th Avenue South 26- 028 -24 -13 -0059 520 6435 - 15th Avenue South 26- 028 -24 -13 -0043 600 6504 - 15th Avenue South 26- 028 -24 -13 -0076 570 7525 Aldrich Avenue South 33- 028 -2441 -0164 570 7344 Bryant Avenue South 33- 028 -24 -14 -0047 560 6825 Elliot Avenue South* 26- 028 -24 -34 -0085 1,380 6828 Elliot Avenue South 26- 028 -24 -34 -0135 530 7525 Girard Avenue South* 33- 028 -2442 -0094 550 7537 Girard Avenue South 33- 028 -24 -42 -0091 487 7025 Nicollet Avenue South* 34- 028 -24 -12 -0022 1,012 6820 Portland Avenue South 27- 028 -2444 -0006 628 7211 Portland Avenue South' 35- 028 -24 -23 -0002 650 7520 Portland Avenue South 34- 028 -24 -41 -0021 350 6608 Stevens Avenue South* 27- 028 -24 -42 -0073 360 6625 Stevens Avenue South 27- 028 -24 -42 -0095 490 TOTAL $14,523 Property moved from Cycle I1 acquisition list to the Cycle III acquisition list. Original tax capacity for taxes assessed in 1993 and payable in 1994 Double Lot Appendix A -3 -3 APPENDIX C ESTIMATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "A -3" Tax Increment Estimates and Calculations Lower Limit of Range Per Home) Upper Limit of Range Per Home) Construction Cost Land and Building) 85,000 160,000 x Sales Ratio 93% 93% Estimated Market Value 79,050 148,800 x Tax Capacity Ratio Class 1 A, Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance 720 141 720 1,536 New Tax Capacity 861 2,256 Original Net Tax Capacity (Avg.)* 547 547 Captured Net Tax Capacity 314 1,709 x Tax Capacity (Extension) Rate Taxes Payable in 1994 137.3190% 137.3190% Annual Tax Increment 431 2,347 x Number of New Program Homes 23 23 Total Gross Annual Tax Increment" 9,917 53,976 Assumes non - homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. Estimate of Ad Valorem Upper Limit of Range Lower Limit of Range Property Taxes Per Home) Per Home) Construction Cost Land and Building) 85,000 160,000 Estimated Market Value 79,050 148,800 x Tax Capacity Ratio Class 1 A; Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 720 720 2.00% of the balance 141 1,536 New Tax Capacity 861 2,256 x Tax Capacity (Extension) Rate Taxes Payable in 1994 137.3190% 137.3190% Annual Ad Valorem Property Taxes 1,182 3,098 x Number of New Program Homes 23 23 Gross Total Annual Ad Valorem Property Taxes ' 27,193 71,252 Appendix A -3-4 APPENDIX D BUDGET" TAX INCREMENT FINANCING DISTRICT "A -3" Line Item Amount Property A uisition 1,144,000 Appraisals 7,700 Demolition/Site Clearance 132,000 Legal Expenses 22,000 Total Gross Expenditures 1,305,700 This budget assumes acquisition of all 22 Cycle III properties located within Tax Increment Financing District "A -3 ". Appendix A -3 -5 APPENDIX E ESTIMATE OF IMPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "A -3" The purpose of analyzing impacts on taxing jurisdictions is to (a.) determine how tax increment assistance provided to a proposed redevelopment project impacts taxing jurisdictions; (b.) determine the level of impact as it relates to tax base, and (c) determine the amount of taxes a taxing entity would need to levy in order to increase their respective tax base by the amount the project brings in absent the project. If the 'But For" test were not met, construction would not occur. That is, without the creation and existence of the tax increment district, construction would not occur because the cost of developing the proposed project by a private developer would be prohibitive. Acceptable rates of return on project investment could not be met and risk would be too high. Development would not move forward. Construction would not occur without the assistance of the city. In light of this, the impact to taxing jurisdictions would be $0. Foregone would be the benefits of a new construction project, increased overall tax base, and other project objectives. The estimated impact of Tax Increment District "A -3" would be as follows if the project were built without tax increment financing: IMPACT ON TAX BASE The following table .displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1994 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix A -3 -6 Range of Captured Entity's Total Range of Captured Tax Capacity to Taxing Entity Net Tax Capacity Tax Capacity Entity Total Hennepin County 813,900,929 7,222 - 39,307 0.001% - 0.005% City of Richfield 16,794,256 7,222 - 39,307 0.043% - 0.234% School District 280 24,250,257 7,222 - 39,307 0.030% - 0.162% The following table .displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1994 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix A -3 -6 IMPACT ON TAX RATES Taxing Entity Current Tax Rate Range of Captured Tax Ca p aci Potential Taxes Hennepin County 37.441 7,222 - 39,307 2;704 - $14,717 City of Richfield 26.164 7,222 - 39,307 1,890 - $ 10,284 School District 280 66. 190 7,222 - 39,307 4,780 - $26,017 Other 7.524 7,222 - 39,307 543-$ 2,957 Total 137.319 7,222 - 39,307 9,917 - $53,976 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A -3 -7 The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No: 3 to the Redevelopment Plan for Redevelopment Project Area "B" Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B -2" Tax Increment Financing Plan for Tax Increment Redevelopment District "B-3" All Related to the Richfield Rediscovered Housing Program Dated: June.20, 1994 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 612) 861 -9760 Modification No. 3 to the Redevelopment Plan for Redevelopment Project Area "B" TABLE OF CONTENTS Part 1. Richfield Rediscovered Housing Program Modification No. 3 Redevelopment Plan for Redevelopment Project Area "B" PART I : REDEVELOPMENT PLAN Original Plan Page Modification No. 3 Page A. Statement of Public Purpose 33 B. Statutory Authority 33 C. Description of Redevelopment Project Area 34 B -1 D. Statement of Goals and Objectives 35 E. Develo ment Activities and Agreements 36 F. Proposed Land Use 38 G. Acquisition and Relocation Activities 38 B -2 H. Environmental Considerations 39 1. Redevelo ment Plan Modification 39 I Administration of Redevelopment Project 39 Part I. Modification No. 3 Redevelopment Plan for Redevelopment Project Area "B" C. Description of Redevelopment Project Area Pursuant to Minn. Stat.. Sec. 469.029, subd. 6, the boundary of Project Area "B" is being expanded in order to incorporate additional redevelopment opportunities. The new boundary for Project Area "B" encompasses all that real property within an area described as follows: Beginning at the intersection of the south right -of -way line of State Highway, No. 62 and the east right -of -way line of Oliver Avenue South, thence in a line easterly more of less, along said south right -of -way line to its intersection with the west right -of -way -line of Pleasant Avenue South. Thence southerly along said west right -of -way line to its intersection with the south right -of -way line of West 63rd Street. Thence westerly along said south right -of -way line to its intersection with the west right -of -way line of Aldrich Avenue South. Thence, southerly along said west right -of -way line to its intersection with the south property line of Lot 4, Block 2, Ray's Lynnhurst Second Addition. Thence, westerly along said south property line, as extended, to its intersection with the east property line of Lot 9, Block 2, Ray's Lynnhurst Second Addition. Thence, southerly along said east property line, as extended, to its intersection with the south property line of Lot 5, Block 2, Ray's Lynnhurst Section Addition. Thence, westerly along said south property line, as extended, to its intersection with the south right -of -way line of Mildred Drive. Thence, westerly more or less, along said south right -of -way line to its intersection with the east right -of -way of Emerson Avenue South. Thence, southerly along said east right -of -way line to its intersection with the north property line of Lot A, Silverwood Second Addition. Thence, easterly along said north property line, as extended, to its intersection with the east property line of Lot A, Silverwood Second Addition. Thence, southerly along said east property line, as extended, to its intersection with the south right -of -way line of West 66th street. Thence, westerly along said south right -of -way line to its intersection with the west right -of -way line of Humboldt Avenue South. Thence, southerly along said west right -of -way line to its intersection with the north right -of -way line of West 69th Street. Thence, westerly along said north right -of -way line to its intersection with the west right -of -way line of Irving Avenue South. Thence, southerly along said west right -of -way line to its intersection with the south right - of -way line of West 72nd Street. Thence, easterly along said south right -of -way line to its intersection with the west right -of -way line of Humboldt Avenue South. Thence, southerly along said west right -of -way line to its intersection with the north right -of -way line of West 73rd Street. Thence, westerly along said north right -of -way line to its intersection with the west right -of -way line of Penn Avenue South. Thence, southerly along said west right -of -way line to its intersection with the north right -of -way line of West 74th Street. Thence, westerly along said north right -of -way line to its intersection with the west right -of -way line of Sheridan Avenue South. Thence, southerly along said west right -of -way line to its intersection with the north right -of -way line of West 76th street. Thence, westerly along said north right -of -way line to its intersection with the east right -of -way line of Xerxes Avenue South. Thence, northerly along said east right -of -way line to its intersection with the south right -of -way line of West 66th Street. Thence, easterly along said south right -of -way line to its intersection with the east right -of -way line of Russell Avenue South. Thence, southerly along said east right -of -way line to its intersection with the north property line of Lot 23, Block 2, Tingdale Brothers Lincoln Hills. Thence, easterly along said north property line, as extended, to its intersection with the east property line of Lot 23, Block 2, Tingdale Brothers Lincoln Hills. Thence, southerly along said east property line, as extended, to its intersection with the south right -of -way line of West 67th Street. Thence, easterly along said south right -of -way line to its intersection with the east property line of Lot 24, Block 16, Tingdale Brothers Lincoln Hills. Thence, southerly along said east property line, as extended, to its intersection with the north right -of -way line of West 69th Street. Thence, easterly along said north right -of -way line to its intersection with the east right -of -way line of Penn Avenue South. Thence, northerly along said east right -of -way line to its intersection with the south right - of -way line of West 68th Street. Thence, easterly along said south right -of -way line to its intersection with the east right -of -way line of Oliver Avenue South. Thence, northerly more less, along said east right -of -way line to its intersection with the south property line of Lot 13, Block 11, Ray's Lynnhurst Addition. Thence westerly along said south property line, as extended, to the center line of the alley of Block 12, Ray's Lynnhurst Addition. Thence northerly along said centerline to the south right -of -way line of West 63rd Street. Thence easterly along said south right -of -way line to the east right -of -way line of Oliver Avenue South. Thence northerly along said east right -of -way line to the point of beginning. G. Acquisition and Relocation Activities 1. Acquisition As a means of comprehensively formulating Cycle III of the Richfield Rediscovered Housing Program, HRA staff identified property for acquisition in two ways. The first involved contacting and surveying residential property owners that have in the past expressed interest in the voluntary sale of their property. The second involved property owners contacting the HRA requesting that their property be considered for the program. Properties that were considered candidates for the program were then further evaluated for program eligibility and inspected. The properties which follow are identified for acquisition under Cycle III of the program. PROPERTY ADDRESS PEI) NUMBER 1908 West 66th.Street* 28- 028 -24 -23 -0125 6300 Aldrich Avenue South* 28- 028 -24 -11 -0041 6404 Humboldt Avenue South 28- 028 -24 -24 -0002 6440 Humboldt Avenue South 28- 028 -24 -24 -0009 6318 Knox Avenue South 28- 028 -24 -21 -0107 6821 Logan Avenue South 28- 028 -24 -34 -0050 6845 Newton Avenue South 28- 028 -24 -33 -0018 6320 Oliver Avenue South 28- 028 -24 -22 -0122 6539 Oliver Avenue South* 28- 028 -24 -23 -0092 7015 Penn Avenue South* 33- 028 -24 -22 -0003 7021 Penn Avenue South* 33- 028 -24 -22 -0004 6236 Pleasant Avenue South 27- 028 -24 -22 -0056 6824 Queen Avenue South 29- 028 -24 -44 -0024 6933 Queen Avenue South 29- 028 -24 -44 -0170 6645 Upton Avenue South* 29- 028 -2442 -0015 7332 Upton Avenue South+ 32- 028 -24 -13 -0059 Property moved from Cycle II acquisition list to the Cycle III acquisition list. Double Lot. Under Cycle III, the property listed in the following table (formerly part of the Cycle II property list) is hereby removed from the acquisition list for Redevelopment Project Area B. This property may be considered for future program acquisition. (Also note that this property is identified for removal from the list of properties for Tax Increment District "B -2 "). PROPERTY ADDRESS PID NUMBER 2916 West 71 1/2 Street 32- 028 -24 -12 -0072 6924 Newton Avenue South 28- 028 -24 -33 -0073 I: Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B -2" TABLE OF CONTENTS Part U. Richfield Rediscovered Housing Program Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B -2" PART I - TAX INCREMENT PLAN Original Plan Page Modification No. 1 Pa e A. Statutory Authority 7 B. Statement of Objectives 7 C. Develo ment Program 7 D. Description of Property in the Tax Increment Financing District 9 B -2 -1 E. Classification of the Tax Increment Financing District 9 F. Parcels in Acquisition 10 B -2 -1 G. Estimate of Costs 10 H. Estimated Amount of Obligated Funds 10 I. Sources of Revenue 11 J. Original Tax Capacity l I K. Estimated Captured Tax Capacity 12 L. Duration of the District 12 M. Estimated Impact on Other Taxing Jurisdictions 12 N. Modifications of the Tax Increment Financing District 12 O. Limitation on Administrative Expenses 12 P. Limitation on Duration of Tax Increment Financing Districts 13 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement 13 R. Limitation of the Use of Tax Increment 13 S. Notification of Prior Planned Improvements 14 T. Excess Tax Increment 14 U. Restrictions on Pooling; Five Year Limit 15 V. Assessment Agreements 16 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account 17 X. Annual Disclosure Requirements 17 Y. Assum tions 18 Z. Municipal Findings 18 mm Modification PART I1 - TAX INCREMENT PLAN Original Plan No. 1 Page Page Appendix A: Ma - Redevelopment Pro'ect Area "A" 23 Appendix B: Property in the Tax Increment Redevelopment District "B -2" 25 Appendix B -2 -1 Appendix C: Estimate of Tax Increments 26 A endix D: Tax Increment Financing Budget 27 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions 28 mm Part I. Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B -2" D. Description of Property in the Tax Increment Financing District The property listed within Appendix B is the final list of property which was acquired for program purposes. See "Section F. Parcels in Acquisition" below for properties removed from the acquisition list due to unresponsiveness or undesire to further participate in the program. F. Parcels in Acquisition The properties listed below (formerly part of the Cycle I1 property list) have been identified for removal from the acquisition list and from TIF District "B -2 ". The removal of this property is a program objective under Cycle III of the Richfield Rediscovered Housing Program. This property may be considered for program acquisition at some future date and incorporated back into the Richfield Rediscovered Program under a separate program modification. PROPERTY ADDRESS PID NUMBER 2916 West 71 I/2 Street 32- 028 -24 -12 -0072 6924 Newton Avenue South 28- 028 -24 -33 -0073 B -2 -1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B -2" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY" 6641 Oliver Avenue South 28- 028 -24 -32 -0045 1,254 6912 Oliver Avenue South 28- 028 -24 -33 -0053 655 7124 Washburn Avenue South 32- 028 -24 -12 -0073 530 Original net tax capacity shown represents values of record for taxes payable in 1992'. as stated in the 1992 plans. Appendix B -2 -1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B -3" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Tax Increment Financing Plan for . Tax Increment Redevelopment District "9-3" KBM PART I - TAX INCREMENT PLAN Page No. A. Statutory Authori B -3 -1 B. Statement of Objectives B -3 -1 C. Development Program B -3 -I D. Description of Property in the Tax Increment Financing District E. Classification of the Tax- Increment Financing District B -3 -2 F. Parcels in Acquisition B -3 -3 G. Estimate of Costs B -3 -3 H. Estimated Amount of Obligated Funds B -3 -3 1. Sources of Revenue B -3 -4 J. Original Tax Capacity B -3 -4 K. Estimated Captured Tax Capacity B -3-4 L. Duration of the District B -3 -5 M. Estimated Impact on Other Taxing Jurisdictions B -3 -5 N. Modifications of the Tax Increment Financing District B -3 -5 O. Limitation on Administrative Expenses B -3 -5 P. Limitation on Duration of Tax Increment Financing Districts B -3 -5 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement B -3 -5 R. Limitation of the Use of Tax Increment B -3 -6 S. Notification of Prior Planned Improvements B -3 -6 T. Excess Tax Increment B -3 -6 U. Restrictions on Pooling; Five Year Limit B -3 -7 V. Assessment Agreements B -3 -9 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account B -3 -9 X. Annual Disclosure Requirements B -3 -9 Y. Assumptions B -3 -10 Z. Municipal Findings B -3 -10 KBM B -3 -ii PART I - TAX INCREMENT PLAN Page No. Appendix A: Map - Redevelopment Project Areas "A" and "B" and and Tax Increment Financing Districts "A -3" and "B -3" Appendix B -3 -1 Appendix B: Property in the Tax Increment Redevelopment District "B -3" Appendix B -3 -3 Appendix C: Estimate of Tax Increments A endix B -34 Append ix D: Tax Increment Financing Budget Appen dix B -3 -5 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions I Appendix B -3 -6 B -3 -ii Part II. Tax Increment Financing Plan for Tax Increment Redevelopment District "B -3" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "B -3 ") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "B" (Project Area "B ") for the Richfield Rediscovered 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 continue to seek and affirm the goals and objectives set forth in. Part I of the Redevelopment Plan for Redevelopment Project Area "A ", dated July 16, 1990 as well as additional program objectives set forth in HRA Letter No. 13, dated April 20, 1992. C. Development Program 1. Description of Development Activities As with previous cycles of the housing program and so with Cycle III, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The HRA will assist prospective developers, builders, and buyers with development, redevelopment, new construction, and other related activities within the context of the modified Redevelopment Plan for Redevelopment Project Area "B ", this Tax Increment Plan, and other related guidelines. 2. Development Activities Covered by Contract At this writing, there are no executed development contracts for Cycle II properties located in TIF District "B -3 ". Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon HRA Board and City Council approval. B -3 -1 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project. Proposals from prospective developers, builders, and buyers 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 III of the Housing Program, a total of 38 properties have been identified for program participation and acquisition. Twenty -two (22) of the properties are located within Redevelopment Project Area "A" while the remaining sixteen (16) are within Redevelopment Project Area "B ". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Area A and B each contain one (1) property with a double lot. Property subdivisions will be required for both lots in order to construct two homes on each site. Initial construction for Cycle III is anticipated to begin in the last quarter of 1994. Construction for each home is anticipated to be approximately 150 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 -3" is identified in Appendix B. E. Classification of the Tax Increment Financing District The Richfield BRA 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 Tax Increment District "B -3" to be established within Project Area "A" is a redevelopment tax increment financing district as defined in. Minn. Stat., Sec. 469.174, subd. 10. 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. B-3-2 A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle III" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division, for the duration of the tax increment district's life. F. Parcels in Acquisition The following property has been identified for acquisition in Cycle III of the Housing Program: PROPERTY ADDRESS PID NUMBER 1908 West 66th Street* 28- 028 -24 -23 -0125 6300 Aldrich Avenue South* 28- 028 -24 -11 -0041 6404 Humboldt Avenue South 28- 028 -24 -24 -0002 6440 Humboldt Avenue South 28- 028 -24 -24 -0009 6318 Knox Avenue South 28- 028 -24 -21 -0107 6821 Logan Avenue South 28- 028 -24 -34 -0050 6845 Newton Avenue South 28- 028 -24 -33 -0018 6320 Oliver Avenue South 28- 028 -24 -22 -0122 6539 Oliver Avenue South* 28- 028 -24 -23 -0092 7015 Penn Avenue South* 33- 028 -24 -22 -0003 7021 Penn Avenue South* 33- 028 -24 -22 -0004 6236 Pleasant Avenue South 27- 028 -24 -22 -0056 6824 Queen Avenue South 29- 028 -24-44 -0024 6933 Queen Avenue South 29- 028 -24-44 -0170 6645 Upton Avenue South* 29- 028 -24 -42 -0015 7332 Upton Avenue South' 32- 028 -24 -13 -0059 Property moved from Cycle II acquisiton list to the Cycle III acquisiton list. Double Lot. The tax increment district budget includes acquisition costs for land sale subsidy which will be offered to eligible developers, builders, and buyers 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, an additional $700,000 of program revenue is available under Cycle III to continue the housing program. B -3 -3 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. A projected cash flow of the overall program reveals that interim program funding could potentially be repaid with interest if sufficient tax increment receipts are available and housing values appreciate. 1. 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 an allocation from the development account. In addition to this allocation of revenue, other sources of revenue potentially available to the BRA and City may be utilized. J. Original Tax Capacity Pursuant to Minn. Stat., Sec. 469.175; subd. I and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "B -3" is based on the January 2, 1992 assessed value placed on the property by the county assessor. The OTC for the district is $1 1,446. (See Appendix B, Property Located in Tax Increment Financing District "B -3 ".) 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 increase 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. l and Minn. Stat., Sec. 469.177, subd. 2, the estimated captured net tax capacity (CTC) of Tax Increment District 'B -3" is within a range of 284 to $1,679 per home. The total CTC for the 17 new homes to be located within Redevelopment Project Area "B" ranges from $4,828 to $28,543. 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.) B -3-4 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 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., 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 my 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 B -3 -5 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 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 of 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 l8 months immediately proceeding 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 to: I . 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 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 given: district: In accordance with Minn. Stat., Sec. 469.1763, the following terms have the meanings 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. l 763, subd. 2 with respect to expenditures outside the 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 3 -7 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 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. 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. B -3 -8 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 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 or 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; 0: • 4. Tax increment revenues for taxes payable in the current calendar year; 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 municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: 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 Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle III" which will be on' file at City.Hall, Community Development Department, Housing and Redevelopment Division, 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 interested developers, builders, or buyers could not construct the aforementioned improvements; and without B -3 -10 the use of tax increments or other revenues authorized by this plan to assist with the financing of the activities, interested developers, builders, or buyers 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 the continuation of the Richfield Rediscovered Housing 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. B -3 -11 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "B" AND TAX INCREMENT FINANCING DISTRICT "B -3" APPENDIX A REDEVELOPMENT PROJECT AREAS "A" AND "B" AND TAX INCREMENT FINANCING DISTRICTS "A -3" AND "B -3" Appendix B -3 -1 t; N C CI ZZ E 1 4 LAj z v'cz. :) L1,.0 IISIONVIS V, zz u ° r LU1. =JL 11 N — W ED - 711..._._1 = I V102 c - i E < s _ W Fo Lo MOl 1310"01 _ I I{ II__ . I - _ .- ___ _ _ _ _ MO- I1310N01 rI. 1 -- 1i :.. _ — I II. _ - - ;: u.u1 - - JAV YrO33 3nv tiv037 11 _ ---- rj 4I e1' III II II II I 4111 I 91 019NIwoo19 U I III lf- 4i„ l 1GJl"II' _.Il _ II U:.II ......... 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NNN0VV 10O0Mtl1 oI NML1M7« w tl3M,0 Y3A110 IF if i°11 = -:_ II_- 3AV NN3d p , _.. 1• 7AV NM3d N33n0 111 I{,— If r -i I I - j -__- II_ fell II N33n0N ntl I _ --_I1.- - _,1 I ..JI • II_ .. g `_ l I l,3 iS nY Nv01tl 311E 1-A - - rii 1 -- ' J• MV Oltl 3115 6W.0.11SwOl I 1:ir I . ... II fvn0111 NOLdn I I - -. II 5 p JI . II_ I III I! IL__ . IL u .. I ___ Il_ _ No,dn JI_ l"3 NIA I IN3iN1A MtlnBNfVM J I II II. I II II II II 1i •' I II I ^ ±I I NYnB11SYM JAY S3%tl3% ^ • - I I _. —.. ..- 3M 53xtl3a I INO Vl b b YI b N j~ N rn r V! - 1. 0 Appe,. ndix B -3 -2 APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B -3" PROPERTY ADDRESS PEI) NUMBER ORIGINAL NET TAX CAPACITY " 1908 West 66th Street* 28- 028 -24 -23 -0125 486 6300 Aldrich Avenue South* 28- 028 -24 -11 -0041 550 6404 Humboldt Avenue South 28- 028 -24 -24 -0002 660 6440 Humboldt Avenue South 28- 028 -24 -24 -0009 1;196 6318 Knox Avenue South 28- 028 -24 -21 -0107 550 6821 Logan Avenue South 28- 028 -24 -34 -0050 580 6845 Newton Avenue South 28- 028 -24 -33 -0018 630 6320 Oliver Avenue South 28- 028 -24 -22 -0122 560 6539 Oliver Avenue South* 28- 028 -24 -23 -0092 975 6236 Pleasant Avenue South 27- 028 -24 -22 -0056 600 7015 Penn Avenue South' 33- 028 -24 -22 -0003 605 7021 Penn Avenue South* 33- 028 -24 -22 -0004 605 6824 Queen Avenue South 29- 028 -24-44 -0024 380 6933 Queen Avenue South 29- 028 -24 -44 -0170 1,030 6645 Upton Avenue South* 29- 028 -24 -42 -0015 1,219 7332 U ton.Avenue South+ 32- 028 -24 -13 -0059 820 TOTAL $11,446 Property moved from Cycle II acquisition list to the Cycle III acquisition list. Original tax capacity for taxes assessed in 1993 and payable in 1994 Double Lot Appendix B -3 -3 APPENDIX C ESTIMATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "B -3" Tax Increment Estimates and Calculations Lower Limit of Range Per Home) Upper Limit of Range Per Home) Construction Cost and and. Building) 85,000 160,000 x Sales Ratio 93% 93% Estimated Market Value 79,050 148,800 x Tax Capacity Ratio Class 1 A; Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance 720 141 720 1,536 New Tax Capacity 861 2,256 Original Net Tax Capacity Av . * 577 577 Captured Net Tax Capacity 284 1,679 x Tax Capacity (Extension) Rate Taxes Payable in 1994 137.3190% 137.3190% Annual Tax Increment 390 2,306 x Number of New Program Homes 17 17 Total Gross Annual Tax Increment " 6,630 39,195 Assumes non - homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. Estimate ofAd Valorem Upper Limit of Range Lower Limit of Range Pro er Taxes Per Home) Per Home) Construction Cost Land and Building) 85,000 160,000 Estimated Market Value 79,050 148,800 x Tax Capacity Ratio Class 1 A; Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 720 720 2.00% of the balance 141 1,536 New Tax Capacity 861 2,256 x Tax Capacity (Extension) Rate Taxes Pa able in 1994 137.3190% 137.3190% Annual Ad Valorem Property Taxes 1,182 3,098 x Number of New Program Homes 17 17 Gross Total Annual Ad Valorem Property Taxes 20,099 52,665 . Appendix B -3 -4 APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "B -3" Line Item Amount Property A uisition- 822,000 Appraisals 5,600 Demolition/Site Clearance 84,000 Le al Ex enses 16,000 Total Gross Expenditures 937,600 This budget assumes acquisition of all 16 Cycle III properties located within Tax Increment Financing District "B -3 ". _ Appendix B -3 -5 APPENDIX E ESTIMATE OF IMPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "B -3" The purpose of analyzing impacts on taxing jurisdictions is to (a.) determine how tax increment assistance provided to a proposed redevelopment project impacts taxing jurisdictions; (b.) determine the level of impact as it relates to tax base; and (c) determine the amount of taxes a taxing entity would need to levy in order to increase their respective tax base by the amount the project brings in absent the project. If the 'But For" test were not met, construction would not occur. That is, without the creation and existence of the tax increment district, construction would not occur because the cost of developing the proposed project by a private developer would be prohibitive. Acceptable rates of return on project investment could not be met and risk would be too high. Development would not move forward. Construction would not occur without the assistance of the city. In light of this, the impact to taxing jurisdictions would be $0. Foregone would be the benefits of a new construction project, increased overall tax base, and other project objectives. The estimated impact. of Tax Increment District "B -3" would be as follows if the project were built without tax increment financing: IMPACT ON TAX BASE The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1994 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix B -3 -6 Range of Captured Entity's Total Range of Captured Tax Capacity to Taxing Entity Net Tax Capacity Tax Capacity E!I Total Hennepin County 813,900,929 4,828 - 28,543 0.001% - 0.004% City of Richfield 16,794,256 4,828 - 28,543 0.029% - 0.170% School District 280 24,250,257 4,828 - 28,543 0.020% - 0.118% The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1994 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix B -3 -6 IMPACT ON TAX RATES Taxing Entity Current Tax Rate Range of Captured Tax Ca aci Potential Taxes Hennepin County 37.441 4,828 - 28,543 1,808 - $10,687 City of Richfield 26.164 4,828 - 28,543 1,263 - $ 7,468 School District 280 66.190 4,828 - 28,543 3,196 - $18,893 Other ' 7.524 4,828 - 28,543 363-$ 2,148 Total 137.319 4,828 - 28,543 6,630 - $39,195 In addition, the-impact on the school district does not include the effect of state aid for education upon school district funding. Appendix B -3 -7