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05-23-1995PLANNING COMMISSION MINUTFS 4 Regular Meeting April 25, 1995 MEMBERS PRESENT: Chairperson Daniel Linnihan; Commissioners: Timothy Erlander, David Gepner, Mitchell Hadley, Kevin Hansen, Dawn Postudensek, Kristal Stokes, and Paul Wasko MEMBERS ABSENT: Pamela Dmytrenko COUNCIL LIAISON: Martin Kirsch, Mayor STAFF PRESENT: Byron Wallace, Community Development Director; Julie Urban, Zoning Administrator The Planning Commission meeting was called to order by Chairperson Linnihan at 7:00 p.m. . APPROVAL OF MINUTES M /Erlander, S /Stokes to approve the minutes of the regular Planning Commission meeting of March 28, 1995. Motion carried: 7 -0 PUBLIC HEARINGS CASE 95 -CUP -2, 95 -FDP -1 ITEM #1 CSM Corporation Conditional Use Permit and Final Development Plan Architect Gary Tushie, from Tushie Montgomery & Associates, described Phase II of the CSM development. Tushie explained that slight changes have been made to the site design to address traffic flow concerns. An access was added Planning Commission Minutes April 25, 1995 Page 2 from the parking lot to Market Drive, and the restaurant was moved slightly to increase traffic flow at the south end of the parking lot. A traffic signal may also be added in the future at Emerson Avenue. Murray Kornberg, from CSM Corporation, explained that tenants for Phase II haven't been finalized yet. Two possible tenants are Don Pablo's Restaurant and Comp USA. Kornberg reported that demolition is tentatively set to begin in mid - June to July with businesses opening Thanksgiving week -end. Commissioner Wasko asked whether consideration had been made in the site design for alternative modes of transportation. Tushie responded that they hadn't considered bike pathways or storage in the plans but would do so. Community Development Director Wallace recommended . that the Commission approve the plan with the following provisos: 1) staff approve the sign and landscape plans, 2) Engineering approve a storm water drainage plan; and 3) the developer submit a landscape escrow. M /Stokes, S /Hadley to close the public hearing. Motion carried: 7 -0 M /Erlander, S /Stokes to recommend approval of the Final Development Plan with provisos. Stokes offered a friendly amendment requesting that the developer address the need for a bike storage area. Motion carried: 7 -0 CASE 95- ACUP -3, 7440 Penn Avenue ITEM #2 South Hennepin Technical College (PIE Program) Amend Conditional Use Permit Director Wallace reviewed the staff report describing the proposal by Hennepin Technical College (PIE Program) to expand the daycare at 7440 Penn Avenue to allow up to 60 children. Director Wallace recommended approval given the adequate parking and drop- off /pick -up space. Planning Commission Minutes April 25, 1995 Page 3 M /Stokes, S /Postudensek to close the public hearing. Motion carried: 7 -0 M /Erlander, S /Wasko to recommend approval to Amend the Conditional Use Permit. Motion carried: 7 -0 ADDITIONAL ITEMS Don Fondrick, Community Services Director, reviewed the Community Services Capital Improvement Plan which includes the budget for 1995, the proposed budget for 1996, and projected spending beyond 1996. NEW BUSINESS Director Wallace introduced Julie Urban as the new Zoning Administrator. Director Wallace explained that the Planning & Zoning Division will be reorganized effective May 1 with the following changes: the Zoning Administrator will report directly to the Director, the Graphics Technician will provide services to the entire Community Development Department, the City Planner position will be eliminated and consultants will be used to a greater extent. Director Wallace announced that he will be out of the office on medical leave for approximately a month beginning in mid -May. Commissioner Linnihan reported that the HRA has requested members of the Planning Commission to participate in a task force to look at potential plans for the 77th to 76th Street /Lyndale area. Commissioner Wasko mentioned that a state study is being conducted for GIS implementation in cities the size of Richfield. Funding may be available. OLD BUSINESS There was no old business. Planning Commission Minutes April 25, 1995 Page 4 LIAISON REPORTS School Board: Mayor Kirsch and Commissioner Hansen reported on the April 24 School Board meeting. Discussion at the meeting covered gang programs, progress of the building program, and development of a task force on social needs and concerns. The Superintendent candidates will be presented before the May 7 meeting. School Board elections are on May 16. Community Services Advisory Commission: Commissioners Stokes and Hansen reported on the recent meeting at which the Capital Improvement Program was discussed. There was also mention of a fourth municipal liquor store possibly being built next to Phase 11 of the CSM development on Lyndale Avenue. HRA: Community Development Director Wallace explained that the Planning Commission is invited to the May 16 HRA meeting to discuss the proposed Cloverleaf development. City Council: Community Development Director Wallace reported that the Zoning Ordinance was approved. Ad Hoc Traffic Committee: ADJOURNMENT The meeting was adjourned by unanimous consent at 8:55 p.m. imothy Erlander Planning Commission Secretary CITY OF R10HRELD nnm oommission 1_'r•5 < >.' \; \ \... Action Rcquclt Item: #1 Agenda Section: Public Hearing Case: #95 -CUP -3 Date: May 23, 1995 GENERAL INFORMATION Petitioner: Bixby's Bagel Co. Location: 2906 West 66th Street (Southdale Square) Type of Request: Conditional Use Permit to allow development of a restaurant/cafe in a C -2 zone. Zoning: C -2, General Commercial Land Use: Commercial Comp. Plan: Mixed land use References: (see attached Citations section for excerpts) Zoning Code: 520.17 (d) ACTION Proposed Change: Change existing use from a retail sports store to a restaurant/cafe. of Recommendation: Approve the conditional use permit request. 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 May 23, 1995, City Council: Planning Commission action would set a City Council public hearing date of June 12, 1995. ANALYSIS Proposal: Bixby's Bagel Co. proposes to lease the space in Southdale Square formerly occupied by Now Sports. Bixby's Bagels offers both take -out and sit -down food service. The restaurant will provide seating for 50 people. Issues: On -site parking is currently available in the Southdale Square parking lot. In addition, the restaurant's peak period of activity will occur from 6 a.m. to 9 a.m. before the other tenants of the mall are open for business and demand for parking increases. A Conditional Use Permit is required for all restaurants in a C -2 district. RECOMMENDATIONS Recommended Action: Preferred: Recommend that the City Council approve the Conditional Use Permit for Bixby's Bagel Co. at 2906 West 66th Street. Basis: 1. Adequate on -site parking is available. 2. The project will provide continued use of currently vacant retail space. Alternative: Recommend that the City Council deny the request with a finding of fact that the proposed use would have an adverse impact on surrounding properties or the City as a whole. CITATIONS ZONING CODE: 520.17. Conditional uses. The following uses are permitted in the C -2 district only upon the procurement of a conditional use permit pursuant to section 545. a) undertaking establishments; b) drive -in business where people are served in automobiles; c) automobile camps and courts; e) other business uses which are determined by the council to be of the same general character as the uses enumerated in this section and which will not be obnoxious or detrimental to the area in which they would be located. W y oH O a: w .I a A 8 7z T w cr- Q Z D ap JJ W CC vz. 0- LNR w N N 9 N V E 3; v N Q p N Co to m 4 a Y Q N Q cc Qi L co L_ V U'3N cc C O 7 O O 0 to c4 r N C' lf7 CD f` CD CA O r C4 6 qf Q m S 3nmw 1N33NIA O a: w .I a A 8 7z T w cr- Q Z D ap JJ W CC vz. 0- LNR w n / 5 anmRAv 5aum m w qq W W H N b b W1:1 a Lil J a Q w J z a a O N uj U LO cj _2? o t1I r m J G li Q c c LU a cs > z N Co N O a C c U C-4 cr niitoiiTr; n / 5 anmRAv 5aum m w qq W W H N b b W1:1 a Lil J a Q w J z a a O N uj U LO cj _2? o t1I r m J G li Q c c LU a cs > z N Co N O a C c U C-4 cr IR 0 uj cl I 0 in 53 di 93 Jit FO IR 0 uj cl I 0 in 53 o' DD DD 0 0 D ol D D Q o 10 z- CITY OF R10HRELD Pwmm oommission Letter Item: #2 Agenda Section: New Business PC Letter: #6 Date: May 23, 1995 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 with 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 10, 1995 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 Plans 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. 4, 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 23rd day of May, 1995 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.4 PROPERTY ADDRESS PID NUMBER 6345 - Bloomington Ave. 26- 028 -24 -11 -0025 6437 - Bloomington Ave. 26 -028 -24 -14 -0088 7429 - Dupont Ave. ++ 33 -028 -24-41 -0076 7037 - Oakland Ave So. 35- 028 -24 -22 -0042 6629 - Portland Ave. 26 -028 -24 -32 -0045 7216 - 1st Ave.* 34 -028 -24 -13 -0094 6616 - 2nd Ave.* 27- 028 -24-42 -0064 7241 - 2nd Ave. 34- 028 -24 -13 -0150 6812 - 13th Ave. 26 -028 -24-43 -0022 6237 - 14th -Ave. 26 -028 -24 -12 -0069 6349 - 14th Ave. 26- 028 -24 -12 -0087 6438 - 15th Ave. 26- 028 -24 -13 -0061 6533 - 15th Ave. 26 -028 -24 -13 -0108 6320 - 16th Ave. 26 -028 -24 -11 -0017 6400 - 16th Ave. 26 -028 -24 -14 -0076 7525 - Aldrich Ave So.* 33- 028 -24-41 -0164 7537 - Emerson Ave So. 33- 028 -24-42 -0132 6833 - Grand Ave So. 27 -028 -24 -33 -0070 7300 - Portland Ave So. 34- 028 -24 -14 -0015 7304 - Portland Ave. So. 34- 028 -24 -14 -0016 7520 - Portland Ave So.* 34 -028 -24-41 -0021 6609 - 2nd Ave So. 27- 028 -24-42 -0056 6914 - 13th Ave So. 26- 028 -24-43 -0076 6329 - 14th Ave So. 26- 028 -24 -12 -0091 6408 -14th Ave So. 26- 028 -24 -13 -0117 6432 - 15th Ave So.* 26- 028 -24 -13 -0059 506 - E. 67th St. 27- 028 -24-41 -0014 6507 - Bloomington Ave. 26- 028 -24 -14 -0116 6600 - Columbus Ave. 26- 028 -24 -32 -0004 7025 - Nicollet Ave.* 34- 028 -24 -12 -0022 6620 - 5th Ave. 27- 028 -24-41 -0028 PROPERTY ADDRESS PID NUMBER 6915- 13th Ave. 26 -028 -24-43 -0064 6326 - 14th Ave. 26- 028 -24 -12 -0140 6928 - 14th Ave.* 26 -028 -24-43 -0069 6217 - 15th Ave. 26 -028 -24 -12 -0058 6220 - 15th Ave. 26 -028 -24 -12 -0060 6508 - Bloomington Ave 26 -028 -24 -13 -0097 7027 - Columbus Ave So. 35 -028 -24 -22 -0001 7329 - Girard Ave So. 33 -028 -24 -13 -0057 6816 - Pleasant Ave So. 27 -028 -24 -33 -0061 6820 - Pleasant Ave So. 27 -028 -24 -33 -0062 6820 - Portland Ave So.* 27 -028 -24-44 -0006 7415 - 3rd Ave So. + 34- 028 -24-41 -0088 6945 - 14th Ave So. 26- 028 -24-43 -0013 6525 - 15th Ave. So. 29 -028 -24 -13 -0110 6428 - 16th Ave So. 26 -028 -24 -14 -0081 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Double lot. Early acquisition. ATTACHMENT B RICHFIELD REDISCOVERED HOUSING PROGRAM ACQUISITION PROPERTY LOCATED IN REDEVELOPMENT PROJECT AREA "B" MODIFICATION NO.4 PROPERTY ADDRESS PID NUMBER 6318 - Knox Ave. ++ 28 -028 -24 -21 -0107 6421 - Girard Ave. 28 -028 -24 -13 -0008 6929 - Queen Ave. 29 -028 -24-44 -0171 2819 - W. 70 1/2 St. ++ 32- 028 -24 -12 -0068 6305 - Girard Ave So. 28- 028 -24 -12 -0027 6813 - Russell Ave So. 29 -028 -24-44 -0038 6736 - Upton Ave So. 29- 028 -24-42 -0132 6300 - Aldrich Ave.* 28 -028 -24 -11 -0041 7432 - Aldrich Ave. 33 -028 -24 -41 -0026 6320 - Girard Ave So. 28- 028 -24 -12 -0033 6440 - Humboldt Ave So.* 28 -028 -24 -24 -0009 6306 - Irving Ave So. 28- 028 -24 -21 -0126 6310 - Irving Ave So. 28- 028 -24 -21 -0075 6645 - Knox Ave So. 28- 028 -24 -31 -0032 6601 - Logan Ave So. 28- 028 -24 -31 -0061 6539 - Oliver Ave So.* 28- 028 -24 -23 -0092 6824 - Queen Ave So.* 29- 028 -24-44 -0024 6825 - Queen Ave So. 29- 028 -24-44 -0008 6913 - Queen Ave So. 29- 028 -24-44 -0175 6933 - Queen Ave So.* 29 -028 -24-44 -0170 2916 - W. 71 1/2 St. 32 -028 -24 -12 -0072 1908 - W. 66th St. 28- 028 -24 -23 -0125 6845 - Newton Ave. 28- 028 -24 -33 -0018 6320 - Oliver Ave. 28- 028 -24 -22 -0122 7332 - Upton Ave. + 32- 028 -24 -13 -0059 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Double lot. Early acquisition. 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 May 22, 1995 HRA directive and endorsement to proceed with the Richfield Rediscovered Housing Program (the "Housing Program "); and WHEREAS, on May 22, 1995, 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 Districts relating thereto; and WHEREAS, in order to implement the continuation of the Housing Program to guide development, redevelopment, and new construction of single family residential housing with 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. 4 to the Redevelopment Plans for Project Area "A and Project Area "B ", made modifications to Tax Increment Districts A -3 and B -3, and approved the establishment of new Tax Increment Financing Districts A -4 and B -4 in the Tax Increment Financing Plans relating thereto, (collectively, the "Plans'), all pursuant to Minn. Stat. Sec. 469.001 - 469.047 (the "'HRA Act ") and Minn. Stat. Sec. 469.174 - 469.179, inclusive, as amended (the 'TIF Act"); and 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 Resolution No. Page 2 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 23rd day of May, 1995 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 1995 REDEVELOPMENT PLANS 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 1 Russ Susag, Ward 2 Donald Priebe, Ward 3 ROUSING 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 David Gepner, Member Mitchell Hadley, Member Kevin Hansen, Member Dawn Postudensek, Member Paul Wasko, Member CITY STAFF Byron Wallace Director, Community Development Bruce Palmborg Housing & Redevelopment Coordinator Katia Medvetski Redevelopment Specialist Bruce Nordquist Housing Supervisor Pamela Rohne Rehabilitation Specialist CONSULTANTS John B. Dean Ronald L. Batty HR,4 Legal Counsel Holmes & Graven, Chartered Minneapolis, AN Sidney Inman Mark Ruff Publicorp, Inc. Minneapolis, MN NOTE TO READER The text contained within the following modified housing program maintains the goals and objectives set forth in earlier program editions. Substantive changes to the current housing program include an updated list of properties identified for acquisition and program implementation as well as changes in the budget, calculation of tax increment, and estimate of impacts to various taxing jurisditions. The reader is encouraged to review the original housing program plans and prior plan modifications. The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "A" Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" Tax Increment Financing Plan for Tax Increment Redevelopment District "A -4" All Related to the Richfield Rediscovered Housing Program Dated: May 15, 1995 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 612) 861 -9760 TABLE OF CONTENTS Part L Richfield Rediscovered Housing Program Modification No. 4 Redevelopment Plan for Redevelopment Project Area "A" PART I - REDEVELOPMENT PLAN Original Plan Page Modification No. 4 Page A. Statement of Public Purpose 1 B. Statutory Authori 1 C. Descri tion of Redevelopment Project Area 2 D. Statement of Goals and Objectives 3 E. Develo ment Activities and Agreements 4 F. Proposed Land Use 6 G. Ac uisition and Relocation Activities 6 A -1 H. Environmental Considerations 7 L Redevelo ment Plan Modification 7 J. Administration of Redevelopment Project 7 A -i Part L Modification No. 4 Redevelopment Plan for Redevelopment Project Area "A" G. Acquisition and Relocation Activities 1. Acquisition In furthereance of the Richfield Rediscovered Housing Program, BRA staff maintained standards set forth in prevous years to identify property for acquisition. In its sequential numbering system, this is Cycle IV in the housing program. As in the past, residential property owners were contacted and surveyed to determine (a.) whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional means of obtaining candidate properties were made by. a.) property owners contacting the HRA requesting that their property be considered for the program and (b) referrals by the city's health and inspections department. Candidate properties were further evaluated for program eligibility and inspected. The following properties are identified for acquisition under Cycle IV of the program: PROPERTY ADDRESS PID NUMBER 6345 - Bloomington Ave. 26 -028 -24 -11 -0025 6437 - Bloomington Ave. 26 -028 -24 -14 -0088 7429 - Dupont Ave. ++ 33 -028 -24-41 -0076 7037 - Oakland Ave So. 35-028 -24 -22 -0042 6629 - Portland Ave. 26 -028 -24 -32 -0045 7216 - 1 st Ave.` 34 -028 -24 -13 -0094 6616 - 2nd Ave.* 27 -028 -24-42 -0064 7241 - 2nd Ave. 34 -028 -24 -13 -0150 6812 - 13th Ave. 26 -028 -24-43 -0022 6237 - 14th Ave. 26 -028 -24 -12 -0069 6349 -14th Ave. 26 -028 -24 -12 -0087 6438 -15th Ave. 26 -028 -24 -13 -0061 6533 - 15th Ave. 26 -028 -24 -13 -0108 6320 - 16th Ave. 26 -028 -24 -11 -0017 6400 -16th Ave. 26 -028 -24 -14 -0076 7525 - Aldrich Ave So.* 33 -028 -24-41 -0164 7537 - Emerson Ave So. 33 -028 -24 -42 -0132 6833 - Grand Ave So. 27 -028 -24 -33 -0070 7300 - Portland Ave So. 34 -028 -24 -14 -0015 7304 - Portland Ave. So. 34- 028 -24 -14 -0016 7520 - Portland Ave So.* 34- 028 -24-41 -0021 6609 - 2nd Ave So. 27- 028 -24-42 -0056 6914 -13th Ave So. 26- 028 -24-43 -0076 kv i PROPERTY ADDRESS PID NUMBER 6329 - 14th Ave So. 26 -028 -24 -12 -0091 6408 - 14th Ave So. 26 -028 -24 -13 -0117 6432 -15th Ave So.* 26-028 -24 -13 -0059 506 - E. 67th St. 27 -028 -24 -41 -0014 6507 - Bloomington Ave. 26 -028 -24 -14 -0116 6600 - Columbus Ave. 26 -028 -24 -32 -0004 7025 - Nicollet Ave.* 34 -028 -24 -12 -0022 6620 - 5th Ave. 27 -028 -24-41 -0028 6915 -13th Ave. 26 -028 -24-43 -0064 6326 -14th Ave. 26 -028 -24-12 -0140 6928 -14th Ave.* 26 -028 -24-43 -0069 6217 -15th Ave. 26 -028 -24 -12 -0058 6220 -15th Ave. 26 -028 -24 -12 -0060 6508 - Bloomington Ave 26 -028 -24 -13 -0097 7027 - Columbus Ave So. 35 -028 -24 -22 -0001 7329 - Girard Ave So. 33 -028 -24 -13 -0057 6816 - Pleasant Ave So. 27 -028 -24 -33 -0061 6820 - Pleasant Ave So. 27 -028 -24 -33 -0062 6820 - Portland Ave So.* 27 -028 -24-44 -0006 7415 - 3rd Ave So. + 34 -028 -24-41 -0088 6945 - 14th Ave So. 26 -028 -24-43 -0013 6525 - 15th Ave. So. 29 -028 -24 -13 -0110 6428 - 16th Ave So. 26 -028 -24 -14 -0081 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Double lot. Early acquisition. Under Cycle IV, the property fisted in the following table (formerly part of the Cycle III property fist) 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 fist of properties for Tax Increment District "A-3") PROPERTY ADDRESS PID NUMBER 6900 -13th Ave. 26 -028 -24-43 -0073 6321 - 14th Ave. 26 -028 -24 -12 -0093 6435 - 15th Ave. 26 -028 -24 -13 -0043 6504 - 15th Ave. 26 -028 -24 -13 -0076 6825 - Elliot Ave. 26 -028 -24 -34 -0085 7211 -Portland Ave. + 35 -028 -24 -23 -0002 6608 - Stevens Ave. 27 -028 -24-42 -0073 Double lot. A -2 Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" TABLE OF CONTENTS Part 11 Richfield Rediscovered Housing Program Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" A. Statuto Authority 7 Modification PART I - TAX INCREMENT PLAN Original Plan No. 1 C. Develo ment Program Page Page A. Statuto Authority 7 B. Statement of Objectives 7 C. Develo ment Program 7 D. Description of Property in the Tax Increment Financing District 9 A -3 -1 E. Classification of the Tax Increment Financing District 9 F. Parcels in Acquisition 10 A -3 -1 G. Estimate of Costs 11 H. Estimated Amount of Obligated Funds 11 L Sources of Revenue 11 J. Ori inal Tax Capacity 12 K. Estimated Captured Tax Capacity 12 L. Duration of the District 12 M. Estimated Impact on Other Taming 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 -3-i A -3 -ii Modification PART II - 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 "A -3" 25 Appendix A -3 -1 Appendix C: Estimate of Tax Increments 26 Appendix D: Tax Increment Financing Budget 27 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions 28 A -3 -ii Part L Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A -3" 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 III property list) have been identified for removal from the acquisition list and from TIF District "A -3 ". The removal of this property is a program objective under Cycle IV 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. Double lot. PROPERTY ADDRESS PID NUMBER 6900 -13th Ave. 26 -028 -24-43 -0073 6321 - 14th Ave. 26 -028 -24 -12 -0093 6435 - 15th Ave. 26 -028 -24 -13 -0043 6504 -15th Ave. 26 -028 -24 -13 -0076 6825 - Elliot Ave. 26 -028 -24 -34 -0085 7211 - Portland Ave. + 35 -028 -24 -23 -0002 6608 - Stevens Ave. 27 -028 -24-42 -0073 A -3 -1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A -31' PROPERTY PIDI ORIGINAL NET ADDRESS NUMBER TAX CAPACITY'S 7416 = 4th Ave. 34 -028 -24-41 -0053 680 6500 -14th Ave. 26 -028 -24 -13 -0132 590 6404 -15th Ave. 26 -028 -24 -13 -0052 470 7344 - Bryant Ave. 33 -028 -24 -14 -0047 560 6828 - Elliot Ave. 26 -028 -24 -34 -0135 530 7525 - Girard Ave. 33 -028 -24-42 -0094 550 7537 - Girard Ave. 33 -028 -24 -42 -0091 487 6625 - Stevens Ave. 1 27 -028 -24-42 -0095 490 Original net tax capacity shown represents values of record for taxes payable in 1994, as stated in the 1994 plans. Appendix A -3 -1 Tax Increment Financing Plan for Tax Increment Redevelopment District "A -4" TABLE OF CONTENTS i 14 Richfield Rediscovered Housing Program Tax Increment Financing Plan for Tax Increment Redevelopment District "A4" A-4-i PART I - TAX INCREMENT PLAN Page No. A. Statutory Authori A-4 -1 B. Statement of Objectives A-4 -1 C. Development Program A4-1 D. Description of Property in the Tax Increment Financing District A-4 -2 E. Classification of the Tax Increment Financing District A-4 -2 F. Parcels in Acquisition A-4 -3 G. Estimate of Costs A-4-4 H. Estimated Amount of Obligated Funds A-4-4 L Sources of Revenue A-4-4 J. Original Tax Capacity A-4 -5 K. Estimated Captured Tax Capacity A-4 -5 L. Duration of the District A-4 -5 M. Estimated Impact on Other Taxing Jurisdictions A4-5 N. Modifications of the Tax Increment Financing District A-4 -6 O. Limitation on Administrative Expenses A-4 -6 P. Limitation on Duration of Tax Increment Financing Districts A-4 -6 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement A4-6 R. Limitation of the Use of Tax Increment A4-7 S. Notification of Prior Planned Improvements A4-7 T. Excess Tax Increment A4-7 U. Restrictions on Pooling; Five Year Limit A4-8 V. Assessment Agreements A4-9 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account A4-10 X. Annual Disclosure Requirements A4-10 Y. Assumptions A4-11 Z. Municipal Findings A4-11 A-4-i A-4 -ii PART I I - TAX INCREMENT PLAN Page No. Appendix A: Ma - Redevelopment Project Areas "A" and "B" Appendix A4-1 Appendix B: Property in the Tax Increment Redevelopment District "A -4" Appe ndix A4-3 Appendix C: Estimate of Tax Increments Appendix A4-5 Appendix D:` Tax Increment Financing Budget Appendix A4-6 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions Appe ndix A4-7 A-4 -ii Part II. Tax Increment Financing Plan for Tax Increment Redevelopment District "A4" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "A4") 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 IV, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The BRA 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 acquisition is proceeding between HRA staff and owners for one property. Early acquisition has already occurred on one property. Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon BRA Board and City Council approval. A-4 -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 W of the Housing Program, a total of 71 properties have been identified for program participation and acquisition. Forty six (46) of the properties are located within Redevelopment Project Area "A" while the remaining 25 are within Redevelopment Project Area "B ". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Areas A and B each contain one property with a double lot. Property subdivisions will be required for these lots in order to construct two homes on each site. Initial construction for Cycle W is anticipated to begin in the summer of. Construction for each home is anticipated to be approximately 120 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 "A4" 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 accordancewith Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended, find that Tax Increment District "A4" 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-4 -2 A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle IV" 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 TIF District A4, Cycle IV of the Housing Program: PROPERTY ADDRESS PID NUMBER 6345 - Bloomington Ave. 26 -028 -24 -11 -0025 6437 - Bloomington Ave. 26 -028 -24 -14 -0088 7429 - Dupont Ave. + 33- 028 -24-41 -0076 7037 - Oakland Ave So. 35 -028 -24 -22 -0042 6629 - Portland Ave. 26 -028 -24 -32 -0045 7216 -1 st Ave.* 34 -028 -24 -13 -0094 6616 - 2nd Ave.* 27 -028 -24-42 -0064 7241 - 2nd Ave. 34 -028 -24 -13 -0150 6812 -13th Ave. 26 -028 -24-43 -0022 6237 - 14th Ave. 26 -028 -24 -12 -0069 6349 - 14th Ave. 26-028 -24 -12 -0087 6438 - 15th Ave. 26 -028 -24 -13 -0061 6533 -15th Ave. 26 -028 -24 -13 -0108 6320 - 16th Ave. 26 -028 -24 -11 -0017 6400 - 16th Ave. 26 -028 -24 -14 -0076 7525 - Aldrich Ave So.* 33 -028 -24-41 -0164 7537 - Emerson Ave So. 33 -028 -24-42 -0132 6833 - Grand Ave So. 27 -028 -24 -33 -0070 7300 - Portland Ave So. 34 -028 -24 -14 -0015 7304 - Portland Ave. So. 34 -028 -24 -14 -0016 7520 - Portland Ave So.* 34 -028 -24-41 -0021 6609 - 2nd Ave So. 27 -028 -24-42 -0056 6914 - 13th Ave So. 26- 028 -24-43 -0076 6329 - 14th Ave So. 26 -028 -24 -12 -0091 6408 -14th Ave So. 26 -028 -24 -13 -0117 6432 - 15th Ave So.* 26 -028 -24 -13 -0059 506 - E. 67th St. 27 -028 -24-41 -0014 6507 - Bloomington Ave. 26 -028 -24 -14 -0116 6600 - Columbus Ave. 26 -028 -24 -32 -0004 7025 - Nicollet Ave.* 34 -028 -24 -12 -0022 6620 - 5th Ave. 27 -028 -24-41 -0028 A-4 -3 PROPERTY ADDRESS PID NUMBER 6915 - 13th Ave. 26-028 -24 -43 -0064 6326 - 14th Ave. 26-028 -24-12 -0140 6928 -14th Ave.* 26-028- 2443 -0069 6217 -15th Ave. 26-028 -24 -12 -0058 6220 - 15th Ave. 26 -028 -24 -12 -0060 6508 - Bloomington Ave 26 -028 -24 -13 -0097 7027 - Columbus Ave So. 35-028 -24 -22 -0001 7329 - Girard Ave So. 33 -028 -24 -13 -0057 6816 - Pleasant Ave So. 27 -028 -24 -33 -0061 6820 - Pleasant Ave So. 27 -028 -24 -33 -0062 6820 - Portland Ave So.* 27 -028 -24-44 -0006 7415 - 3rd Ave So. + 34 -028 -24-41 -0088 6945 - 14th Ave So. 26 -028- 2443 -0013 6525 - 15th Ave. So. 29 -028 -24 -13 -0110 6428 - 16th Ave So. 26 -028 -24 -14 -0081 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Double lot. Early acquisition. 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, $750,000 of program revenue is anticipated to be alloted to Cycle IV in order to continue with 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. L 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. A-4-4 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. 1 and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "A4" is based on the January 2, 1994 assessed value placed on the property by the county assessor. The OTC for the district is $29,550. (See Appendix B, Property Located in Tax Increment Financing District "A4".) 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-4" is within a range of 429 to $1,694 per home. The total CTC for the full build -out of 46 potential new homes to be located within Redevelopment Project Area "A" ranges from $19,734 to $77,924. 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.) 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. A-4 -5 N. Modifications of the Tax Increment Financing District All tax increment plan modifications will be processed in accordance with Mum. 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 BRA 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 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 BRA 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 A-4 -6 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 Mm. 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 Mum. 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 amount necessary to cancel any tax levy as provided in Mmn. Stat., Sec. 475.6 1, 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. A-4 -7 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 IMA!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: 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 expensee;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 district: 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 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. A-4 -8 Pursuant to Mm. 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. 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 A-4 -9 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 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; 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 A-4-10 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 NImn. 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 Nffim. 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 IV" 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 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 A-4 -11 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-4 -12 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "A" AND TAX INCREMENT FINANCING DISTRICT "A -4" APPENDIX A REDEVELOPMENT PROJECT AREAS "A" AND "B" Appendix A-4 -1 N w In tA o iV m vt P, £z f r HSIONVIS PU zz Is IZ 1-1 VI OZ 4161 L C 0113!91401 F IL 3AV UV033 41 81 41 it I 4191 = Fu N019NIw0016 -- =C 411.1 D==E 41 b1 = = F- V1 £1 = = L VI ZI L 4111 I .._.. %- VI OI I1 101113 II 0 W 09v 71143 I Y u a snewnlo3 Xavd ( f ONVlMVO i ' " 1111 I j- ' 3AV 01,111111.d I1 1 f -/ -- 413 NOl N Ili i l-- J IIILLIL_.dd I P•£ , OLC puz SN3A31S =r 111 OL 3AV 131103114 1130SIvle 111 I H1tlOM1N3M 'I OAtlnesllle 114 VSV 3ld I'L ONVa9 III i31atl3H II 01313aV9 3AV 31VONAI 1L l Mealy 1NVAae W X v3lOJ 1NOdn0 a NOSa3043 U_1NOw3ai -- OtlVtl H 8 1- 1ol MAUI IF--'] Fz=l C 53w IF IL XONX ^ Nv9ol01 Ny 9a0w —1 F- 1 ___71 E_ N0lM3N :Z CJC_ a3A 33AVNN3d N33n0 ll3ssna NV01113HS NOLdn 1N33NIA NaneHSVM . ICI II (I 3.w 53xtl3x ... .. 2 nI m m 1. I 1C M N N n0 w zz z LL OU Uz a W A h N N N N ii zz 0 o c c c c c W n w w w n n wQ M0113JON01 3AV 8VO33 1C'I JLJn `•.. 1 YIAI IC LolllOjI .191 J j ; I 4191 waole 1 V141 41 31 VI £1 VI zl J OOO j;, tll 11 lr =_ DO I V 1 01 09v31N0 snewnlo3 NIIVd ONVIMvo 3AV ONV11aOd 11110 0 I 1401"113 P•£ 31=1j0 D = PVZ S1413A31S 3AV 131103IN 1130SIVIR H1tlOMj F=== CJO I ,HnesllIdac= =- 1NVSV31d J II ON V a9 1 3AV 31vONAI C HOC CJII i 1„ Aae XVll03 1NOdn0 NOStl31413 iNow3a3 oavals laloewnN C% w 9NIANI S3wvr XONXI _._ l, -. - f •-- .-.- . NV901 I _ r Nv9ao w - E j .. lI 14101 01031141 N3AIl0 J, '3AV NN3d 1133no I =-1i r 1113ssna L ' 1f NVOIa3HS SVwoHI I Il..: IrL__J7IIL__ 1(=1 Noldn LN33NIA munGHSVM 3AV S3Xtl3X AO w w w N N N N YI N N VI N P m n O P o ,P V• n n n n a A d U) Qi H U W ti cz a W W 0 U F-4 A W P4 A W 1-tl W x U H Lr l C L APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A4" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY• • 6345 - Bloomington Ave. 26 -028 -24 -11 -0025 550 6437 - Bloomington Ave. 26 -028 -24 -14 -0088 520 7429 - Dupont Ave. + 33-028 -24 -41 -0076 540 7037 - Oakland Ave So. 35-028 -24 -22 -0042 660 6629 - Portland Ave. 26 -028 -24 -32 -0045 590 7216 -1st Ave.* 34 -028 -24 -13 -0094 1,265 6616 - 2nd Ave.* 27 -028 -24-42 -0064 530 7241 - 2nd Ave. 34 -028 -24 -13 -0150 490 6812 - 13th Ave. 26 -028- 2443 -0022 570 6237 - 14th Ave. 26 -028 -24 -12 -0069 580 6349 -14th Ave. 26 -028 -24 -12 -0087 580 6438 - 15th Ave. 26 -028 -24 -13 -0061 590 6533 - 15th Ave. 26 -028 -24 -13 -0108 1,242 6320 - 16th Ave. 26-028 -24 -11 -0017 1,380 6400 - 16th Ave. 26 -028 -24 -14 -0076 550 7525 - Aldrich Ave So.* 33 -028 -24-41 -0164 590 7537 - Emerson Ave So. 33 -028 -24-42 -0132 580 6833 - Grand Ave So. 27 -028 -24 -33 -0070 430 7300 - Portland Ave So. 34 -028 -24 -14 -0015 560 7304 - Portland Ave. So. 34- 028 -24 -14 -0016 560 7520 - Portland Ave So.* 34 -028 -24-41 -0021 350 6609 - 2nd Ave So. 27 -028 -24-42 -0056 580 6914 - 13th Ave So. 26 -028 -24-43 -0076 550 6329 - 14th Ave So. 26 -028 -24 -12 -0091 490 6408 - 14th Ave So. 26 -028 -24 -13 -0117 570 6432 - 15th Ave So.* 26- 028 -24 -13 -0059 530 506 - 67th St. E. 27 -028 -24-41 -0014 550 6507 - Bloomington Ave. 26 -028 -24 -14 -0116 580 6600 - Columbus Ave. 26 -028 -24 -32 -0004 1,725 7025 - Nicollet Ave.* 34 -028 -24 -12 -0022 989 6620 - 5th Ave. 27 -028 -24-41 -0028 560 6915 -13th Ave. 26 -028 -24-43 -0064 480 6326 -14th Ave. 26 -028 -24 -12 -0140 470 Appendix A-4 -3 PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY *" 6928 -14th Ave.* 26 -028 -24-43 -0069 500 6220 -15th Ave. 26 -028 -24 -12 -0060 519 6508 - Bloomington Ave 26 -028 -24 -13 -0097 630 7027 - Columbus Ave So. 35 -028 -24 -22 -0001 610 7329 - Girard Ave So. 33 -028 -24 -13 -0057 690 6816 - Pleasant Ave So. 27 -028 -24 -33 -0061 470 6820 - Pleasant Ave So. 27 -028 -24 -33 -0062 650 6820 - Portland Ave So.* 27 -028 -24-44 -0006 630 7415 - 3rd Ave So.' 34 -028 -24 -41 -0088 680 6945 - 14th Ave So. 26 -028 -24-43 -0013 640 6525 - 15th Ave. So. 29 -028 -24 -13 -0110 600 6428 - 16th Ave So. 26 -028 -24 -14 -0081 600 Property moved from Cycle HI acquisition list to the Cycle IV acquisition list. Original tax capacity for taxes assessed in 1994 and payable in 1995. Double lot. Appendix A-4-4 APPENDIX C ESTIMATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "A -4" Tax Increment Estimates and Calculations Lower Limit of Range Per Home) Upper Limit of Range Per Home) Construction Cost and and Building) 92,000 160,000 x Sales Ratio 93% 93% Estimated Market Value 85,560 148,800 x Tax Capacity Ratio Class IA, Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance 720 271 720 1,536 New Tax Capacity 991 2,256 Original Net Tax Capacity Av . * 562 562 Captured Net Tax Capacity 429 1,694 x Tax Capacity (Extension) Rate Taxes Payable in 1995 140.669% 140.669% Annual Tax Increment 603 2,383 x Number of Potential New Program Homes 46 46 Total Gross Annual Tax Increment *" 27,738 109,618 Assumes non - homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. Estimate ofAd Valorem Lower Limit of Range Upper Limit of Range Pro er Taxes Per Home) Per Home) Construction Cost Land and Building) 92,000 160,000 Estimated Market Value 85,560 148,800 x Tax Capacity Ratio Class IA, Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 720 720 2.00% of the balance 271 1,536 New Tax Capacity 991 2,256 x Tax Capacity (Extension) Rate Taxes Payable in 1994 140.669% 140.669% Annual Ad Valorem Property Taxes 1,394 3,173 x Number of Potential New Program Homes 46 46 Gross Total Annual Ad Valorem Property Taxes 64,124 145,958 Appendix A-4 -5 APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "A -4" Line Item Per Property Gross Amount* Property A uisition 52,000 2,392,000 Appraisals 350 16,100 Demolition/Site Clearance 6,000 276,000 Legal Expenses Is 1,000 46,000 Total 59,350 2,730,100 This budget assumes potential acquisition of all 48 Cycle IV properties located within Tax Increment Financing District "A-4 ". Note that program revenue allocation of $750,000 allows for the acquisition of 13 properties on average. Appendix A-4-6 APPENDIX E ESTIMATE OF IMPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "A4" 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 "A4" would be as follows if the project were built without tax increment financing: EWPACT ON TAX BASE The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 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 A4-7 Range of Captured Entity's Total Range of Captured Net Tax Capacity Taxing Entity Net Tax Capacity Net Tax Capacity to Entity Total City of Richfield 21,056,158 19,734 - 77,924 0.094 - 0.370 Hennepin County 966,907,816 19,734 - 77,924 0.002 - 0.008 School District 280 21,056,158 19,734 - 77,924 0.094 - 0.370 The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 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 A4-7 EWPACT ON TAX RATES Taxing Entity Current Tax Rate Range of Captured Tax Capacity Potential Taxes City of Richfield 26.626 19,734 - 77,924 5,254 - 20,748 Hennepin County 37.454 19,734 - 77,924 7,391 - 29,186 School District 280 67.327 19,734 - 77,924 13,286 - 52,464 Other 6.357 19,734 - 77,924 1,254 - 4,954 Total 140.669 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A4-8 The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "B" Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B-3" Tax Increment Financing Plan for Tax Increment Redevelopment District "114" All Related to the Richfield Rediscovered Housing Program Dated: May 15, 1995 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 612) 861 -9760 TABLE OF CONTENTS Part L Richfield Rediscovered Housing Program Modification No. 4 Redevelopment Plan for Redevelopment Project Area "B" A. Statement of Public Purpose 33 Modification PART I - REDEVELOPMENT PLAN Original Plan No. 4 C. Descri tion of Redevelopment Project Area Page Page A. Statement of Public Purpose 33 B. Statuto Authority 33 C. Descri tion of Redevelopment Project Area 34 D. Statement of Goals and Objectives 35 E. Development Activities and Agreements 36 F. Proposed Land Use 38 G. Ac uisition and Relocation Activities 38 B -1 H. Environmental Considerations 39 L Redevelo ment Plan Modification 39 J. Administration of Redevelopment Proiect 39 17 Part L Modification No. 4 Redevelopment Plan for Redevelopment Project Area "B" G. Acquisition and Relocation Activities 1. Acquisition In furthereance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in prevous years to identify property for acquisition. In its sequential numbering system, this is Cycle IV in the housing program. As in the past, residential property owners were contacted and surveyed to determine (a.) whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional means of obtaining candidate properties were made by a.) property owners contacting the HRA requesting that their property be considered for the program and (b.) referrals by the city's health and inspections department. Candidate properties were further evaluated: for program eligibility and inspected. The following properties are identified for acquisition under Cycle IV of the program: PROPERTY ADDRESS PI[) NUMBER 6318 - Knox Ave. ++- 28 -028 -24 -21 -0107 6421 - Girard Ave. 28 -028 -24 -13 -0008 6929 - Queen Ave. 29 -028 -24-44 -0171 2819 - W. 70 1/2 St. ++ 32 -028 -24 -12 -0068 6305 - Girard Ave So. 28 -028 -24 -12 -0027 6813 - Russell Ave So. 29 -028 -24-44 -0038 6736 - Upton Ave So. 29 -028 -24-42 -0132 6300 - Aldrich Ave.* 28 -028 -24 -11 -0041 7432 - Aldrich Ave. 33 -028 -24-41 -0026 6320 - Girard Ave So. 28 -028 -24 -12 -0033 6440 - Humboldt Ave So.* 28 -028 -24 -24 -0009 6306 - Irving Ave So. 28 -028 -24 -21 -0126 6310 - Irving Ave So. 28 -028 -24 -21 -0075 6645 - Knox Ave So. 28 -028 -24 -31 -0032 6601 - Logan Ave So. 28 -028 -24 -31 -0061 6539 - Oliver Ave So.* 28 -028 -24 -23 -0092 6824 - Queen Ave So.* 29 -028 -24-44 -0024 6825 - Queen Ave So. 29 -028 -24-44 -0008 6913 - Queen Ave So. 29 -028 -24-44 -0175 my PROPERTY ADDRESS PID NUMBER 6933 - Queen Ave So.* 29 -028 -24-44 -0170 2916 - W. 71 1/2 St. 32 -028 -24 -12 -0072 1908 - W. 66th St. 28 -028 -24 -23 -0125 6845 - Newton Ave. 28 -028 -24 -33 -0018 6320 - Oliver Ave. 28 -028 -24 -22 -0122 7332 - Upton Ave. + 32 -028 -24 -13 -0059 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Double lot. Early acquisition. Under Cycle IV, the property listed in the following table (formerly part of the Cycle III 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 -3 PROPERTY ADDRESS PID NUMBER 7015 - Penn Ave. 33 -028 -24 -22 -0003 7021 - Penn Ave. 33 -028 -24-22 -0004 LI-IN Modification No. 1 to the Tax Increment Financing Plan for Tax Increment Redevelopment District "B-3" TABLE OF CONTENTS Part K Richfield Rediscovered Housing Program Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B -3" 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 B -3 -1 E. Classification of the Tax Increment Financing District 9 F. Parcels in Acquisition 10 B -3 -1 G. Estimate of Costs 10 H. Estimated Amount of Obligated Funds 10 L Sources of Revenue 11 J. Original Tax Capacity 11 K. Estimated Captured Tax Capacity 12 L. Duration of the District 12 M. Estimated Impact on Other T ing Jurisdictions 12 N. Modifications of the Tax Increment Financing District 12 0. 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. Assumptions 18 LL] Z. Munici al Findings 18 B -3 -i B -3 -ii Modification PART II - TAX INCREMENT PLAN Original Plan No. 1 Page Page Appendix A: Ma - Redevelopment Project Area "B" 23 Appendix B: Property in the Tax Increment Redevelopment District "B-3" 25 Appendix B -3 -1 Appendix C: Estimate of Tax Increments 26 Appendix D: Tax Increment Financing Budget 27 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions 28 B -3 -ii Part L Modification No. 1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B-3" 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 III property list) have been identified for removal from the acquisition list and from TIF District "B -3 ". The removal of this property is a program objective under Cycle IV 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 7015 - Penn Ave. 33 -028 -24 -22 -0003 7021- Penn Ave. 33 -028 -24-44 -0004 B -3 -1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-3" PROPERTY ADDRESS PIED NUMBER ORIGINAL NET TAX CAPACITY" 6404: Humboldt Ave. 28- 028 -24 -24 -0002 660 6821 - Logan Ave. 28 -028 -24 -34 -0050 580 6236 - Pleasant Ave. 27 -028 -24 -22 -0056 600 6645 - Upton Ave. 29 -028 -24 -42 -0015 1,219 Original net tax capacity shown represents values of record for taxes payable in 1994, as stated in the 1994 plans. Appendix B -3 -1 Tax Increment Financing Plan for Tax Increment Redevelopment District "B-4" TABLE OF CONTENTS Part IL Richfield Rediscovered Housing Program Tax Increment Financing Plan for Tax Increment Redevelopment District "B-4" B-4 -i PART I - TAX INCREMENT PLAN Page No. A. Statutory Authority B-4 -1 B. Statement of Objectives B-4 -1 C. Development Program B-4 -1 D. Description of Property in the Tax Increment Financing District B-4 -2 E. Classification of the Tax Increment Financing District B-4 -2 F. Parcels in Acquisition B-4 -3 G. Estimate of Costs B4-4 H. Estimated Amount of Obligated Funds B-44 L Sources of Revenue B44 J. Original Tax Capacity B44 K. Estimated Captured Tax Capacity B44 L. Duration of the District B-4 -5 M. Estimated Impact on Other Taxing Jurisdictions B4-5 N. Modifications of the Tax Increment Financing District B4-5 O. Limitation on Administrative Expenses B-4 -5 P. Limitation on Duration of Tax Increment Financing Districts B-4 -5 Q. Limitation on Qualification of Property in Increment District not Subject to Improvement B4-6 R. Limitation of the Use of Tax Increment B-4 -6 S. Notification of Prior Planned Improvements B4-6 T. Excess Tax Increment B-4 -7 U. Restrictions on Pooling; Five Year Limit B4-7 V. Assessment Agreements B4-9 W. Administration of the Tax Increment Financing District and Maintenance of the Tax Increment Account B4-9 X. Annual Disclosure Requirements B4-9 Y. Assumptions B4-10 Z. Municipal Findings B4-10 B-4 -i B-4 -ii PART I - TAX INCREMENT PLAN Page No. Appendix A: Ma - Redevelopment Project Areas "A" and "B" Appendix B-4 -1 Appendix B: Property in the Tax Increment Redevelopment District "B-4" Appendix B-4 -3 Appendix C: Estimate of Tax Increments Appendix B4-4 Appendix D:' Tax Increment Financing Budget App endix B-4 -5 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions Appendix B-4 -6 B-4 -ii Part II. Tax Increment Financing Plan for Tax Increment Redevelopment District "B-4" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District 'B4") 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 "B ", 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 IV, 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 early negotiations for property acquisitions proceeding between HRA staff and owners for one property. Early acquisitions have already occurred on two properties. 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-4 -1 3. Other Development Not Under Contract Reasonably Expected to Occur in the Proiect. 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 IV of the Housing Program, a total of 73 properties have been identified for program participation and acquisition. Forty six (46) of the properties are located within Redevelopment Project Area "A" while the remaining 25 are within Redevelopment Project Area "B ". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Areas A and B each contain one property with a double lot. Property subdivisions will be required for these lots in order to construct two homes on each site. Initial construction for Cycle IV is anticipated to begin in the summer of. Construction for each home is anticipated to be approximately 120 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 "B4" 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 "B4" to be established within Project Area "B" 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-4 -2 A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey - Cycle IV" 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 TIF District B-4, Cycle IV of the Housing Program: PROPERTY ADDRESS PIED NUMBER 6318 - Knox Ave. ++ 28-028 -24 -21 -0107 6421 -Girard Ave. 28-028 -24 -13 -0008 6929 - Queen Ave. 29 -028 -24-44 -0171 2819 - W. 70 1/2 St. ++ 32 -028 -24 -12 -0068 6305 - Girard Ave So. 28 -028 -24 -12 -0027 6813 - Russell Ave So. 29 -028 -24-44 -0038 6736 - Upton Ave So. 29-028-24-42-0132 6300 - Aldrich Ave.* 28 -028 -24 -11 -0041 7432 - Aldrich Ave. 33 -028 -24-41 -0026 6320 - Girard Ave So. 28 -028 -24 -12 -0033 6440 - Humboldt Ave So.* 28 -028 -24 -24 -0009 6306 - Irving Ave So. 28 -028 -24 -21 -0126 6310 - Irving Ave So. 28 -028 -24 -21 -0075 6645 - Knox Ave So. 28 -028 -24 -31 -0032 6601 - Logan Ave So. 28 -028 -24 -31 -0061 6539 - Oliver Ave So.* 28 -028 -24 -23 -0092 6824 - Queen Ave So.* 29 -028 -24-44 -0024 6825 - Queen Ave So. 29 -028 -24-44 -0008 6913 - Queen Ave So. 29 -028 -24-44 -0175 6933 - Queen Ave So.* 29 -028 -24-44 -0170 2916 - W. 71 1/2 St.* 32 -028 -24 -12 -0072 1908 - W. 66th St.* 28 -028 -24 -23 -0125 6845 - Newton Ave. 28 -028 -24 -33 -0018 6320 - Oliver Ave. 28 -028 -24 -22 -0122 7332 - Upton Ave. + 32 -028 -24 -13 -0059 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Double lot. Early acquisition. 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. B-4 -3 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, $750,000 of program revenue is anticipated to be alloted to Cycle IV in order to continue with the housing prpg xiness for redevelopment is expected to be An estimate of the amount of bnndPJ .ind lvf 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. L 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. 1 and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "B4" is based on the January 2, 1994 assessed value placed on the property by the county assessor. The OTC for the district is $17,126. (See Appendix B, Property Located in Tax Increment Financing District "114".) 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 "B4" is within a range of B-4-4 395 to $1,660 per home. The total CTC for the full build -out of 25 potential new homes to be located within Redevelopment Project Area `B" ranges from $9,875 to $41,500. 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.) L. Duration of the District Pursuant to Mm. 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 Taming 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 Mnn. 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. B-4 -5 Q. Limitation on Qualification of Property in Tax Increment District Not Subject to Improvement Pursuant to Mum. 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 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 BRA 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 amount necessary to cancel any tax levy as provided in Muni. 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: 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. B-4 -7 Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect to expenditures outside the district: 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 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: B-4 -8 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. 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 1 of each year, the HRA must annually report to the commissioner of revenue the following: 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: mm 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; 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: The Tax Increment Financing District is a redevelopment district pursuant to Nfum. 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 1V" 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. B-4 -10 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 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-4 -11 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "B" AND TAX INCREMENT FINANCING DISTRICT 9111-4" G m vlfz HSIONVLS P- Z2 It Iz 4102 4161 M01,3JONOI 3AV av033 VI el VI LI 41 91 NOIONIw0019 -- 4: 1; 4 bl Vl fl L 41 Z I L— VI II 4101 I1 J 101113 OOV3IN3 II snewmo3 XUVd I I ONVIXVO 3AV ONVllaOd VIS 41 t, I NOINII3 DIf Q4 Z , CSN3AUS III 3AV 131103IN r 1130S1a10 I { I L I H1aOM1N3M I Aanesllld II CIII LNVSV3ld r - r ONY89 III 31tlavH I - 0131JaVO I {I 11I1 3AV 31VONAI 1( 1131 tl01v iNVAae I' vJ103 I I 1NOdn0 II \- NOStl3W3 I , 1NOWJbJ -- aavtllo I . 1010ewniH L — ON IAaIII S3nar IONX — NVOOI - I NVO40" NO1M3N - a3AIl0 III 3AV NN3d + N3 no 1l3SSna I'— INv01a3H5 S V W 0111 NOldn I- - -- 1N3JNIA NanBHSVM 3AV S3Xa3X pGt - - -• I N Z o O m m G G o e o m C zZ L U. wz o u. 0 F- _ U V = CLW G G G G G uh G LL'zz c o c c c W N n h h h h M1 M1 Q M0113i9N01 3AV UV033 11r r1 1I1I.Jn .. YI LI 4191 N019NIWOOIe 41 GI I I VI btJOO JC CCC II VI ZI 111Cr C OC ;; I 4111 J F.-_D "101 r 1; 1011l3 OOV3IH3 JU OCrJ' i snewnlo3 Xtlad ONV'IXVO 3AV ONVIltlOd 419 MI I— Yl b NOINI,3 JCJ C I 7y o42 1F C SN3A31S i ®CSC C Of IFZZ== C 1 3AV 1311031N LC]OC C1U ITAOSIVIG N1tlOMlmaLN3M L— Aanes rC O C1C llld I CA 1Na SV3ld L - --- ' ONVtlo 131tla VH 1 3AV 3lVONAI NVAd V iNVAa e I ACC_ CJIr j XVAIOD INOdn J J_I ^I - 1NOdna LJL 1 NoStl3w3 1NOw rt aavaiol9 n \ 9NIAW S3nvr XONX E-7j NVOOI 1... ---- NV9aow jl ....... I NO1M3N C CIC LC] 11 * 3AV 3AV NN3d N33n0 13ssntl MV01143MS SVWOHI NOldn NaneHSVM 3AV S3Xtl3X N m N N VI d n n h 0 h n n G N Vhf N G N u• G N N G G L L _ O vl O G m m O A Qi Qi H U W PG P64 W a W 9 V N H A W A 1- W H 4 x U H a+ Il, APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "13-4" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY ** 6318 - Knox Ave. ++ 28 -028 -24 -21 -0107 580 6421 - Girard Ave. 28 -028 -24 -13 -0008 540 6929 - Queen Ave. 29 -028 -24-44 -0171 600 2819 - W. 701/2 St. ++ 32 -028 -24 -12 -0068 1,449 6305 - Girard Ave So. 28 -028 -24 -12 -0027 590 6813 - Russell Ave So. 29 -028 -24-44 -0038 590 6736 - Upton Ave So. 29 -028 -24-42 -0132 620 6300 - Aldrich Ave.* 28 -028 -24 -11 -0041 560 7432 - Aldrich Ave. 33 -028 -24-41 -0026 579 6320 - Girard Ave So. 28-028-24-12-0033 560 6440 - Humboldt Ave So.* 28 -028 -24 -24 -0009 1,196 6306 - Irving Ave So. 28 -028 -24 -21 -0126 590 6310 - Irving Ave So. 28 -028 -24 -21 -0075 560 6645 - Knox Ave So. 28 -028 -24 -31 -0032 690 6601 - Logan Ave So. 28 -028 -24 -31 -0061 1,020 6539 - Oliver Ave So.* 28 -028 -24 -23 -0092 432 6824 - Queen Ave So.* 29 -028 -24-44 -0024 380 6825 - Queen Ave So. 29 -028 -24-44 -0008 760 6913 - Queen Ave So. 29 -028 -24-44 -0175 580 6933 - Queen Ave So.* 29 -028 -24-44 -0170 1,030 2916 - W. 71 1/2 St. 32 -028 -24 -12 -0072 600 1908 - W. 66th St. 28 -028 -24 -23 -0125 490 6845 - Newton Ave. 28 -028 -24 -33 -0018 680 6320 - Oliver Ave. 28 -028 -24 -22 -0122 590 7332 - Upton Ave. + 32 -028 -24 -13 -0059 860 Property moved from Cycle III acquisition list to the Cycle IV acquisition list. Original tax capacity for taxes assessed in 1994 and payable in 1995 Double lot. Appendix A-4 -3 APPENDIX C ESTIMATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "B-4" Tax Increment Estimates and Calculations Lower Limit of Range Per Home) Upper Limit of Range Per Home) Construction Cost and and Building) 92,000 160,000 x Sales Ratio 93% 93% Estimated Market Value 85,560 148,800 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 720 271 720 1,536 New Tax Capacity 991 2,256 Original Net Tax Capacity Av . * 596 596 Captured Net Tax Capacity 395 1,660 x Tax Capacity (Extension) Rate Taxes Payable in 1995 140.669% 140.669% Annual Tax Increment 556 2,335 x Number of Potential New Program Homes 25 25 Total Gross Annual Tax Increment ** 13,891 58,378 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 Lower Limit of Range Upper Limit of Range Proper& Taxes Per Home) Per Home) Construction Cost (Land and Building) 92,000 160,000 Estimated Market Value 85,560 148,800 x Tax Capacity Ratio Class 1A; Property Type R- Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance 720 271 720 1,536 New Tag Capacity 991 2,256 x Tax Capacity (Extension) Rate Taxes Payable in 1994 140.669% 140.669% Annual Ad Valorem Property Taxes 1,394 3,173 x Number of Potential New Pro am Homes 25 25 Gross Total Annual Ad Valorem Property Taxes 34,851 79,325 Appendix A-4-4 APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "B-4" Line Item Per P:2o= Gross Amount* Property A uisition 52,000 1,300,000 Appraisals 350 8,750 Demolition/Site Clearance 6,000 150,000 Legal Expenses 1,000 25,000 Total 59,350 1,483,750 This budget assumes potential acquisition. of all 25 Cycle IV properties located within Tax Increment Financing District `B-4 ". Note that program revenue allocation of $750,000 allows for the acquisition of 13 properties on average. Appendix A-4 -5 APPENDIX E ESTIMATE OF IMPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "B-4" 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-4" 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 1995 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-4 -6 Range of Captured Entity's Total Range of Captured Net Tax Capacity Taxis Enti Net Tax Capacity Net Tax Capacity to Enti Total City of Richfield 21,056,158 13,891 - 58,378 0.066 - 0.277 Hennepin County 966,907,816 13,891 - 58,378 0.001 - 0.006 School District 280 21,056,158 13,891 - 58,378 0.066 - 0.277 The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 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-4 -6 EVIPACT ON TAX RATES Taxing Entity Current Range of Captured Potential Hennepin County Tax Rate Tax Ca aci Taxes City of Richfield 26.626 13,891 - 58,378 3,699 - 15,544 Hennepin County 37.454 13,891 - 58,378 5,203 - 21,865 School District 280 67.327 13,891 - 58,378 9,352 - 39,304 Other 6.357 13,891 - 58,378 883- 3,711 Total 140.669 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A-4 -7 CITY OF R10FIFIELD nflnnm commission Item: #3 Agenda Section: New Business PC Letter: #7 Date: May 23, 1995 GENERAL INFORMATION Subject: 1996 Capital Improvement Budget (CIB) and 1997 -2001 Capital Improvement Program (CIP). References: 1996 CIB Summary and Proposed 1997 -2001 CIP (attached). BACKGROUND moues: On April 25, 1995, the Planning Commission held a study session with the Community Services Director to discuss the 1996 CIB and 1997 -2001 CIP. On May 9, 1995 the Planning Commission attended a bus tour to review the capital improvement projects. Each year, the City Manager makes a recommendation to the City Council regarding the CIB for the upcoming year. The City has not yet approved the 1996 CIB. The CIP lists the capital improvements in order of priority, together with the cost estimates and the proposed method of financing. The Planning Commission is responsible for reviewing the CIP and making a recommendation to the City Council. RECOMMENDATION Recommended Action: Recommend approval of the 1997 -2001 CIP Plan. 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