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10-27-1998i MAN PLANNING COMMISSION AGENDA October 27, 1998 7:00 p.m. Roll Call Approval of Minutes Regular Planning Commission meeting of September 22, 1998 and Planning Commission study session of October 13, 1998. Public Hearing ITEM #1 98 -CUP -7 6600 Oakland - Richfield HRA and Cornerstone Advocacy Services. Conditional use permit to allow structural changes to the existing home and conversion from a mixed commercial and residential use to a residential use. New Business ITEM #2 PC Letter #44 Finding of Consistency - Modification to Redevelopment Plan and ILN TIF Plan Modification ITEM #3 PC Letter #45 Findings of Tax Increment & Comprehensive Plan for Urban Village Old Business Liaison Reports School Board Community Services Advisory Commission HRA City Council Adjournment Auxiliary aids for individuals with disabilities are available upon request. requests must be made at least 96 hours in advance to the Administrative Service's Director at 861- 9702 ". Planning Commission Minutes Regular Meeting September 22, 1998 MEMBERS PRESENT: Chairperson Daniel Linnihan; Commissioners: Terry Ahlstrom, Brenda Bjorklund, Pamela Dmytrenko (arrived at 7:30 P.M.), David Gepner, Mitchell Hadley, Bill Kilian and Ken Meter. MEMBERS ABSENT: Roger Gordon COUNCIL LIAISON: Martin Kirsch, Mayor STAFF PRESENT: Julie Urban, Zoning Administrator The Planning Commission meeting was called to order by Chairperson Linnihan at 7:00 p.m. APPROVAL OF MINUTES M /Kilian S /Ahlstrom to approve the minutes of the regular Planning Commission meeting of August 25, 1998 and Study Session of September 8, 1998. Motion carried: 8 -0 M /Bjorklund S /Gepner to approve the minutes of the study session minutes of September 8, 1998. Motion carried: 8 -0 PUBLIC HEARINGS September 22, 1998 Page 2 98- CUP -10, 811 East 66th Street ITEM #1 Kham Lou Conditional Use Permit to allow a 48 -seat Restaurant Zoning Administrator presented the staff report explaining that the applicant is requesting a conditional use permit to locate a 48 -seat restaurant at 811 East 66th Street, the old Richfield Floral & Gardens space. In response to a question from Commissioner Meter, Ms. Urban explained that there was not excess parking available behind the restaurant building. Mr. Meter asked whether or not there were plans to make facade improvements. Ms. Urban stated that the owners had originally planned to make improvements when the new building was constructed but had to push the timing of the improvements back because of the cost of the new building. Commissioner Gepner clarified that shared parking is something that City standards recognize. In response to a question from Commissioner Bjorklund, Ms. Urban stated that there aren't plans to serve alcohol at this time. Ms. Urban recommended that, if the Commission, felt strongly that alcohol shouldn't be part of the conditional use permit approval, they should be clear about that in their recommendation. Discussion followed regarding the delivery problems the shopping area has been experiencing. Kham Lou, the applicant, stated that he anticipates having only two deliveries a week and will direct his drivers to the rear of the building. In response to a question from Commissioner Kilian, Mr. Lou explained that he anticipates 40 -50 percent of his business will be carry out. He also stated that he hoped to use new ventilation equipment in the facility. Maxine Hatfield, 6633 Chicago Avenue, explained that the delivery trucks can't get behind the building so they end up blocking the street. Ivis Anchor, 6600 Chicago, confirmed that trucks can't fit behind the building in the area that they are supposed to park. She also stated that the parking in front is tight too. Pat Harris and Nancy Grieman, owners of the commercial property, explained that because of changes in the front parking lot they are requiring all deliveries to take September 22, 1998 Page 3 place in the back. Ms. Harris stated that they've been working on the delivery scheduling to alleviate the bottleneck that currently occurs. Gary Grieman, owner of Richfield Blacktopping, explained that most of his trucks are gone during the day which the delivery trucks maneuver in the back. Dan Frege, manager of B&Ds Convenience Store, explained the types of trucks and frequency of deliveries that his store experiences. He stated that the pop company trucks have trouble pulling in and out of the back area. Commissioner Bjorklund expressed her concern about the parking situation and asked whether or not the owners had considered removing one or more of the buildings in the back to create more parking and delivery space. Ms. Harris explained that they were unable to build a basement under the new building due to high site and building construction costs so storage space is limited. Commissioner Ahlstrom asked whether or not the truck delivery problems were a recent issue or had existed for some time. Ms. Harris explained the background of the delivery issue. Hank Halverson, 6615 Columbus, stated that the apartment residents currently park on street which compounds the problem delivery trucks have maneuvering out of the back area. He stated his concern that if the parking lot fills up, there could be a problem with street parking. He pointed out that the lot could be congested at evening and noon time because of the peak periods for the convenience store and restaurant. M /Hadley, S /Kilian to close the public hearing. Commissioner Kilian stated that he supported adding a stipulation regarding no alcohol without an amended CUP and a stipulation that the owners and tenants would make a good faith attempt to work out delivery issue, keeping trucks and parking off the street and coordinating the scheduling. M /Kilian, S /Bjorklund to recommend approval conditional use permit. Commissioner Gepner raised the issue of the Comprehensive Plan pointing out that the Plan calls for single family, high density residential in this area. Commissioner Kilian suggested that the Plan does call for some neighborhood commercial in the area even if it's not in this exact location. Commissioner Gepner expressed his concern that the Commission would place a constraint on the man's business by restricting the service of alcohol. Commissioner September 22, 1998 Page 4 Kilian clarified that he was just suggesting that the applicant would have to reapply for a conditional use permit if he wanted to add alcohol. Motion carried: 8 -0 Commissioner Bjorklund recommended that the Commission take a look at alcohol and odor issues relating to restaurants at some time in the future. NEW BUSINESS ITEM #2 Annual Zoning Ordinance Review Zoning Administrator reviewed the staff report and went through the items that the Commission may want to consider changing in the Zoning Ordinance. The Commission directed staff to remove the requirement that variances be recorded since it is not required by state law. The Commission determined that adding distance between car wash exist doors and the property line would not have as much of an impact as other water /ice control measures. Ms. Urban stated that staff would continue to monitor the issue. The Commission agreed that changes should be made in the Ordinance language to require property owners to fill in abandoned curb cuts. The Commission discussed the differences related to post spacing for wood and chain link fences. They asked staff to return with appropriate language to address the discrepancy between the industry standard for chain link fences and the ordinance. The Commission expressed a willingness to consider treating recreational facilities with flexibility in the area of fences. The Commission stated that if staff felt written standards were necessary, they should return to the Commission with some suggestions. ITEM #3 Discussion of Annual Planning Commission Award September 22, 1998 Page 5 The Commission discussed the possible award criteria for a Planning Commission award to be given to new development. The Commission asked staff to bring back revised criteria based on their comments. The Commission expressed a desire to present the award at a City Council meeting so there would be more recognition given to the recipient. LIAISON REPORTS School Board: Commissioner Dmytrenko stated that the Board listened to the applicants for the open Board seat and that interviews would be next Monday. The Board would announce its choice on October 5. She stated that there would be a legislative forum on education issues for the four Richfield legislative candidates. Community Services Advisory Commission: Commissioner Ahlstrom stated that the Commission decided to try traffic calming measures for 70th Street that would switch 70th Street and 70 1/2 Street to one way streets for a trial period of six months. Garage Task Force: Commissioner Gepner explained that the task force chose a location at Trunk Highway 77 and 77th Street as the number one choice for the new maintenance facility. The current garage site was chosen as the backup site if issues with the Metropolitan Airports Commission couldn't be worked out for the first site. HRA: Commissioner Gepner described the Urban Village proposal being proposed by Richfield State Agency. He explained that the HRA had directed staff to begin negotiating a developer's agreement. City Council: Mayor Kirsch stated that the Council established assessments, continued the Gramercy items, set a public hearing for the 1999 budget, and reviewed playground equipment bids. September 22, 1998 Page 6 ADJOURNMENT The meeting was adjourned by unanimous consent at 9:30 p.m. Mitchell Hadley Planning Commission Secretary Planning Commission Minutes Study Session October 13, 1998 MEMBERS PRESENT: Chairperson Daniel Linnihan; Commissioners: Terry Ahlstrom, Brenda Bjorklund, Pamela Dmytrenko, David Gepner, Mitchell Hadley, Bill Kilian and Ken Meter. MEMBERS ABSENT: COUNCIL LIAISON Roger Gordon Martin Kirsch, Mayor STAFF PRESENT: John Stark, Community Development Manager Julie Urban, Zoning Administrator Mark Andrle, Community Development Technician The Planning Commission meeting was called to order by Chairperson Linnihan at 7:00 p.m. Study Session Items PC Letter #41 ITEM #1 PASSS Redevelopment Study Update Community Development Specialist Perry Thorvig reviewed the PASS Redevelopment Plan, where he presented several display boards that contained information about Richfield. The boards stated some of the good aspects of the PASSS area, what may need improvement, physical challenges, new news, what will happen if redevelopment takes place and the timing of the project. Mr. Thorvig presented a display which included photos of several buildings from around the area. Mr. Thorvig said the same type of display could be used during the open house to give people examples of the type of buildings that may be built. Mr. Thorvig added that the staff has expanded the mailing to the public by a few blocks and October 13, 1998 Page 2 suggested that the open house be held on two dates in November, one for the businesses and one for the residents. Commissioner Meter raised the issue of how the open houses would be structured to encourage participation by the residents and business owners. The Commission then discussed the purpose of the open house, the use of photos and other displays and how to encourage questions and input from the people at the open house. In response to Commissioner Meter's suggestion that stating the problems first would set a negative tone, the Commission reworded some of the display boards and rearranged the order. The Commissioners unanimously agreed to hold the open house for the residents on November 18, 1998 and the open house for the businesses on November 19, 1998. Both meetings will be from 4:30p.m. to 8:00 p.m. The location for the open house was not yet determined. PC Letter #42 ITEM #2 Urban Village Concept Presentation Developer Jan Susee, gave a presentation on the Urban Village Concept which is proposed for the southeast quadrant of 66th Street and Lyndale. Mr. Susee stated that the proposed Urban Village would include additional office /retail space, rental townhomes, assisted living apartments, a bank, a restaurant and health clinic. Mr. Susee added that most of the parking will be underground and in a parking lot for a total of 1060 parking spots. David Graham who is an architect for Elness, Swenson, Graham gave a presentation which went into the details of the proposed Urban Village. Mr. Graham stated that the Urban Village will be higher density, be pedestrian friendly, have more green space, will have a landscaped perimeter, have transit stops and will allow people to move through the village toward the center. Mr. Graham said the core of the Village will be surrounded with housing and will have activity around the clock. The Village will have more services and green spaces and will have a gateway which will create a sense of arrival for visitors. Mr. Susee said they have met with the home owners in the area and are looking for feedback on the project. October 13, 1998 Page 3 Commissioner Kilian questioned the accessibility for the residents south of the project and asked about the entrances on the townhomes. Mr. Graham said that there is a corridor on the inside of the townhomes but they have a front entrance facing the street. Mr. Graham added that the garage access is from the inside of the townhomes. Commissioner Meter said he liked the around the clock activity in the Village but asked what would keep the area pedestrian friendly and invite people to gather in the Village. Mr. Graham said landscaping and lighting will create an area where people would feel comfortable and that the development team would welcome suggestions for improvements. Commissioner Kilian said he didn't like the design of the McDonald's parking lot and felt it really didn't fit into to the Urban Village concept. Mr. Susee said McDonald's has a long term lease and are there to stay. Mr. Susee said the best solution they could come up with is to design an attractive building and limit their signage. Commissioner Meter said he didn't like the drive through being visible from Lyndale. Mr. Sewsey said the only other option they have is to place the drive through next to a residential area and he thought it would be best to have the drive through next to Lyndale. Larry Wozniczka, 6744 Wentworth, asked how snow would be removed from the area. Mr. Susee said they may haul some out but most will stay where it is plowed and shouldn't cause a problem. Mr. Susee added that they are working on the traffic questions in the south part of the project. Mr. Stark suggested that the spaces for the McDonald's be cut down and employees could park in the parking ramp. Mr. Stark added that the drive - through could be designed in a way to get people in and out faster than normal. Commissioner Ahlstrom asked about a time table if all goes well with the plans. Mr. Susee said ground breaking could start in March and the entire project should be done by the fall of 2000. ITEM #3 PC Letter #43 Planning Commission Award Criteria Zoning Administrator Julie Urban presented the Commission with some new ideas about names for the Planning Commission award. Ms. Urban then went over October 13, 1998 Page 4 some of the criteria to win the award and she said that the award would be presented to the winner at a City Council Meeting. The Commission then ranked the names Ms. Urban presented to them. Chairman Linnihan nominated Richfield Transmission for the award. The Commission agreed that Richfield Transmission should win the award for the first year. NEW BUSINESS Commissioner Kilian suggested that the enterprise facilitator, Rob Smolund, be invited to the next study session to give a presentation. ADJOURNMENT The meeting was adjourned by unanimous consent at 9:25 p.m. Mitchell Hadley Planning Commission Secretary C17ti' OF Planning Commission Letter RICHFIELD October 27, 1998 Agenda Section: Public Hearing Item #: 1 Case #: 98 -CUP -7 GENERAL INFORMATION Type of Request: Conditional use permit to allow expansion of the structure and continued use as residential property Applicant /Owner: Richfield Housing and Redevelopment Authority and Cornerstone Advocacy Services Location: 6600 Oakland Avenue Zoning: Existing Land Use: Proposed Land Use: Comp. Plan: References: Zoning C -2 (general commercial) Mixed use (commercial and residential) Residential Community Commercial see attached Citations section for excerpts) 526..27, subd. 21; 546.05, subds. 4 and 6 Public Notice: Notice of the Planning Commission's consideration and public hearing was mailed to all property owners and occupants within 350 feet of the subject property. City Council: Planning Commission action would set a City Council public hearing date of November 9, 1998. ANALYSIS Proposal: The HRA is proposing to remodel the propel :y at 6600 Oakland Avenue. The existing commercial space would be removed. A small addition might be added to the residential structure to create additional first floor living space. The HRA would sell the property to Cornerstone Advocacy Services to use as transitional housing. Cornerstone Advocacy Services provides crisis intervention services to battered women and their children in south Hennepin County, including Richfield. Cornerstone's transitional housing program provides up to 24 months of supportive housing to clients. Transitional housing, coupled with supportive services, allows these families to work towards self - sufficiency, permanent housing, and stability in order to remain in the community. The property could continue to be used as residential property and be considered a nonconforming use if no changes were made to the building. Once changes are made to a structure that is occupied by a nonconforming use, the use has to be brought into conformance. In this case, the use can be brought into conformance through a conditional use permit. History: The HRA purchased the property at 6600 Oakland Avenue in 1997. At the time, Hat Trick Hockey was located in the northern portion of the building. The residential portion of the structure was occupied by the property owner. This summer, the HRA and Cornerstone received federal HOME funds from Hennepin County to purchase a home in Richfield. The State provided additional funds to pay for rehabilitation costs. Rehabilitation will include removing the retail space and its basement, painting the siding, roof replacement, landscaping, and a variety of interior improvements. Issues: Previous Proposal: The Planning Commission considered a conditional use permit for converting the property to residential at its June meeting. Although the land use proposal for the property has not changed, the nature of the proposed ownership has changed and may warrant additional discussion by the Planning Commission. Several efforts were made to sell the Oakland Avenue property to an investor remodeler. All of the remodelers contacted who had experience purchasing properties to remodel and sell were no longer interested in pursuing a project of this type. The remodeling industry has been very strong, and remodelers are not interested in tying up capital. In addition, the cost of either demolishing the retail space or converting it to living space is too high for a reasonable return on investment. Comprehensive Plan: The Comprehensive Plan designates this property as Community Commercial. The property is zoned general commercial (C -2), which is consistent with the Plan; however, single family residential is an allowable conditional use in the C -2 district. In addition, the property was purchased in May, 1997 under the former Comprehensive Plan which designated the property as Mixed Land Use. The Planning Commission determined that the purchase and sale of the property as residential was consistent with the Comprehensive Plan at that time. The Comprehensive Plan also calls for a comprehensive commercial development on this property and the commercial properties located along Portland Avenue. Absent a comprehensive redevelopment of this corner, it is appropriate to retain the residential use. C -a? ACTION TO BE TAKEN Recommendation: Recommend that the City Council approve the request for a conditional use permit at 6600 Oakland Avenue with the following stipulations: 1. That the commercial space be removed. 2. That the curb cut to and the pavement along 66th Street be removed. 3. That a conditional use permit resolution be recorded with the County. Basis: 1. The proposed expansion and remodeling will improve the property. The structure could continue to be used as a non - conforming residential use if no improvements were made to the property. 2. The existing commercial space and related parking is obsolete; it is appropriate to remove the commercial function from the property. 3. A community commercial development on this property would only be appropriate if coordinated with redevelopment of adjacent commercial parcels. Such redevelopment is unlikely at this time. 4. In May, 1997, the Planning Commission determined that the purchase and sale of the property by the HRA was consistent with the Comprehensive Plan. 5. Cornerstone Advocacy Services provides a valuable service to Richfield residents. 6. Bloomington homes are being used to meet Richfield needs. In April 1998, Cornerstone lost one of their single family dwelling units in Bloomington which they were leasing as part of the transitional housing program. Homes owned and managed by Cornerstone in Richfield and Bloomington have been well cared for and are assets in their neighborhoods. Also, ownership by Cornerstone provides more reliability than leasing. Alternative: Recommend that the City Council deny the request for a conditional use permit at 6600 Oakland Avenue with a finding of fact that the proposed use would have an adverse impact on surrounding properties or the City as a whole. 1-3 ZONING CODE: CITATIONS SECTION 526 - ZONING: COMMERCIAL DISTRICTS 526.27. Conditional uses. Subdivision 1. The uses listed in this subsection are conditional uses in the C- 2 District, and are subject to the conditional use permit provisions outlined in Section 546.05 of this code. Subd. 20. Single family dwellings that comply with the R -1 District provisions and requirements, as set out in Section 521.17 of this code. SECTION 546 - ZONING: ADMINISTRATION 546.05. Conditional use permits. Subdivision 1. Permit required. It shall be unlawful to engage in any use listed in this code as a conditional use without first obtaining a conditional use permit (CUP) from the City pursuant to this subsection. Subd. 4. Planniniz Commission review. After receipt of a completed application, a date shall be set for consideration before the Planning Commission. The Planning Commission may offer whatever public notice of its review it deems necessary. Following this consideration, the Planning Commission shall make a recommendation to the City Council regarding the application. Subd. 6. Conditions for issuance. The Council may not grant a conditional use permit unless it finds that all of the following conditions will be met: a) the proposed use is consistent with the goals, policies, and objectives of the City's Comprehensive Plan; b) the proposed use is consistent with any officially adopted redevelopment plans or urban design guidelines; c) the proposed use is or will be in compliance with the performance standards specified in Section 541 of this code; d) the proposed use will not have undue adverse impacts on governmental facilities, utilities, services, or existing or proposed improvements; e) the use will not have undue adverse impacts on the public health, safety, or welfare; and f) there is a public need for such use at the proposed location; and g) the proposed use meets or will meet all the specific conditions set by this code for the granting of such conditional use permit. 66TH STREET WALK REMOVE ASPHALT 70.00' AND CURB CUT a0.s' 28.7 1 now% — m I Iii DEMOLISH RETAIL SPACE N II I 0 0 N r RICHFIELD Ilk N j RENOVATE GARAGE 1iWiiiii 70.00' NORTH rLn SCALE: I"= 20' DATE: 10 -17 -98 A Q!1 6600 OAKLAND AVENUE CONDITIONAL USE PERMIT W Z W al Z a J Y a 0 I SITE PLAN 1 WZ J HQ Wa O cc 1 la d N I in O RICHFIELD Ilk N j RENOVATE GARAGE 1iWiiiii 70.00' NORTH rLn SCALE: I"= 20' DATE: 10 -17 -98 A Q!1 6600 OAKLAND AVENUE CONDITIONAL USE PERMIT W Z W al Z a J Y a 0 I SITE PLAN IN Planning Commission Letter CITti' OF RICHFIELD October 27, 1998 Agenda Section: New Business Item #: 2 Letter #: 44 GENERAL INFORMATION Type of Request: Consideration of a resolution finding that the Modification to the Redevelopment Plan and Interstate - Lyndale - Nicollet (ILN) Tax Increment Financing (TIF) Plan is consistent with the Richfield Comprehensive Plan. References: Chapter 469 of Minnesota State Statutes requires that the Planning Commission review Redevelopment and Tax Increment Financing Plans for consistency with the City's Comprehensive Plan. A written opinion must be provided within 30 days of the date review is requested. HRA: Planning Commission approval would facilitate the expenditure of these funds by the HRA in a timely manner. ANALYSIS Background: In 1988, the City issued $1.9 million in General Obligation Redevelopment Bonds to fund the then anticipated costs in the ILN area. At that time, the costs were related to public improvements, land acquisition and issuance costs. Approximately $1 million of bond proceeds remain in the fund. Due to the regulations for tax exempt bonds, the proceeds may only be expended on public improvements which are identified in a TIF plan. Since the ILN project area and TIF district were established prior to 1990, these proceeds may also be expended outside of the ILN TIF District. a -1 Proposal: The proposed modification to the Redevelopment Plan and ILN TIF Plan contemplates a budget modification to authorize the expenditure of the remaining bond proceeds for eligible public improvements anywhere within the Richfield Redevelopment project area. Currently, it is proposed that a portion of the proceeds be used for the City's portion of the 66th Street and I -35W bridge design expenses and public improvements involved with the future widening of Lyndale Avenue between 76th and 77th Street. The budget is also being clarified and updated for expenditure activity associated with the Shops at Lyndale, Meridian Crossings, and Candlewood Hotel project. The proposed Plan modification doesn't change the boundary of the redevelopment project or the tax increment district. It only identifies tax increment budget expenditure activity. Issues: The following Comprehensive Plan references support the use of the bond proceeds for the identified public improvements: Street and alley system guiding principles include: ONE -15 protecting residential neighborhoods by providing safe and efficient arterial and collector streets promoting safe and efficient travel throughout the City Specific Plan proposals include: ONE -15 increasing investment in maintenance and upgrading completing traffic safety and capacity improvements: 1. West 66th Street from Newton Avenue to I -35W Public transit guiding principles include the following: ONE -16 promoting safe and efficient transit travel The Plan for the Lyndale South area refers to the study that was conducted. The result of the study was for redevelopment of the 7600 block of Lyndale Avenue. This redevelopment will necessitate street improvements. The Lyndale Avenue bridge widening is also referenced in the plan Addenda -- Exhibit B -3). Changes to the road configuration in the 7600 block of Lyndale are required with the bridge widening and the addition of a double left turn lane at 77th Street. ACTION TO BE TAKEN Recommendation: Adopt the attached resolution finding that the proposed Modification to the Redevelopment Plan and ILN TIF Plan Modification is in conformance with the Comprehensive Plan. Basis: 1. Modifications to a TIF Plan and Redevelopment Plan require a finding of consistency by the Planning Commission. oC 2. Approximately $1 million of bond proceeds and estimated interest earnings remain unspent. The proceeds must be expended on qualified costs related to public improvements. 3. The approval of the plan documents will make it possible to access the unspent bond proceeds for planned public improvements within the boundaries of the Richfield Redevelopment project area. 4. The proposed public improvement to the bridge at 35W and 66th Street is consistent with the City's Comprehensive Plan. 5. The proposed public improvement to Lyndale Avenue between 76th and 77th Streets is consistent with the City's Comprehensive Plan and the Lyndale Avenue Redevelopment Plan. Alternative: Reject the attached resolution, finding that the proposed use of the subject property does not conform to the Comprehensive Plan. a -3 Minnesota State Statutes 469.027 Redevelopment plan. Any person may submit a redevelopment plan to an authority, or an authority may consider a redevelopment plan on its own initiative. An authority shall immediately transmit the plan to the planning agency of the city in which the area to be redeveloped is situated, for its study, or, if no planning agency exists, the plan shall be submitted to an agency indicated by the governing body of the city. An authority shall request the written opinion of the planning or other agency on all redevelopment plans submitted to it prior to approving those redevelopment plans, and the planning or other agency shall submit its written opinion within 30 days. 469.175 Subd. 3. Municipality approval.' A county auditor shall not certify the original net tax capacity of a tax increment financing district until the tax increment financing plan proposed for that district has been approved by the municipality in which the district is located. If an authority that proposes to establish a tax increment financing district and the municipality are not the same, the authority shall apply to the municipality in which the district is proposed to be located and shall obtain the approval of its tax increment financing plan by the municipality before the authority may use tax increment financing. The municipality shall approve the tax increment financing plan only after a public hearing thereon after published notice in a newspaper of general circulation in the municipality at least once not less than ten days nor more than 30 days prior to the date of the hearing. The published notice must include a map of the area of the district from which increments may be collected and, if the project area includes additional area, a map of the project area in which the increments may be expended. The hearing may be held before or after the approval or creation of the project or it may be held in conjunction with a hearing to approve the project. 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) that the proposed tax increment financing district is a redevelopment district, a renewal or renovation district, a mined underground space development district, a housing district, a soils condition district, or an economic development district; if the proposed district is a redevelopment district or a renewal or renovation district, the reasons and supporting facts for the determination that the district meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing and retained and made available to the public by the authority until the district has been terminated. 2) that the proposed development or redevelopment, in the opinion of the municipality, would not reasonably be expected to occur sc'ely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this clause do not apply if the district is a qualified housing district, as defined in section 273.1399, subdivision 1. 3) that the tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole. PLANNING COMMISSION CITY OF RICHFIELD, MINNESOTA RESOLUTION RESOLUTION OF THE RICHFIELD PLANNING COMMISSION FINDING THAT THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND - THE MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE ILN TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City Council for the City of Richfield, Minnesota, (the "City") has proposed to adopt a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and a Modification to the Tax Increment Financing Plan for the ILN Tax Increment Financing District collectively, the "Modifications ") and has submitted the Modifications to the Richfield Planning Commission (the "Commission ") pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, and WHEREAS, the Commission has reviewed the Modifications to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Modifications conform with the general plans for the development and redevelopment of the City as a whole. Adopted this 27th day of October, 1998. Chair ATTEST: Secretary N:\Minnsota\RICHFIEL\mods l 998 \p1an_comm.wpd 2-y a -5 Draft as of October 14, 1998 Draft for Planning Commission Review MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE ILN TAX INCREMENT FINANCING DISTRICT Housing and Redevelopment Authority in and for the City of Richfield City of Richfield, Minnesota Hennepin County, Minnesota J Public Hearing: November 9, 1998 Adoption: Prepared by: EHLERS AND ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville, MN 55113 Phone: (651) 697 -8500 Fax: (651) 697 -8555 019— TABLE OF CONTENTS provided for references purposes only) MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA ........................... Page 1 Introduction ............................... ............................... Pagel Statement of Public Purpose .................. ............................... Page 1 Statutory Authority ......................... ............................... Page 1 Statement of Goals and Objectives ............. ............................... Page 1 Estimated Public Costs ...................... ............................... Page 1 Boundary of the Richfield Project Area, Parcels in Acquisition, and Legal Description .. Page 1 MODIFICATION NO.6 TO TAX INCREMENT FINANCING PLAN FOR ILN TAX INCREMENT FINANCING DISTINCT .............................. Page 2 Introduction ............................... ............................... Page 2 Estimated Project Costs ..................... ............................... Page 3 BOUNDARY MAP OF RICHFIELD REDEVELOPMENT PROJECT AREA AND THE ILN TAX INCREMENT FINANCING DISTINCT . ............................... A-] c2 —r7 Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area November 9, 1998 Introduction The following text represents a modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. The Modified Redevelopment Plan represents a continuation of the goals and objectives set forth in the original Plan. Generally, the substantive changes to the current include the authority to spend tax increments generated from the ILN Tax Increment Financing District in the Rich field Redevelopment Project Area. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area dated June 14, 1993 or the most recent Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area dated June 22, 1998 is recommended. Statement of Public Purpose See also the Statement of Public Purpose found in Section B of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Statutory Authority See also the Statutory Authority found in Section C of the Redevelopment Plan for the Richfield Redevelopment Project Area, dated June 14, 1993. Statement of Goals and Objectives Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield Redevelopment Project Area, dated June 14, 1993. Estimated Public Costs This modification authorizes the HRA to expend tax increment from the ILN Tax Increment Financing District for qualified activities identified in the budget of the Modification to the ILN Tax Increment Financing Plan. Boundary of the Richfield Project Area, Parcels in Acquisition, and Legal Description The bounda -v for Richfield Redevelopment Project Area is not be '-ig modified. Cite of Richfield Modification to the Plan for the ILN Tax Increment Financing District Page 1 Modification No. 6 to Tax Increment Financing Plan for ILN Tax Increment Financing District November 9, 1998 Introduction The following text represents a modification to the Tax Increment Financing Plan for the ILN Tax Increment Financing District. The Modifications to the ILN Tax Increment Financing Plan represent a continuation of the goals and objectives set forth in the original Tax Increment Financing Plan. Generally, the substantive changes to the current Modification include the authority to spend tax increments-generated from the ILN Tax Increment Financing District in the Richfield Redevelopment Project Area on eligible development costs. For further information, a review ofthe Redevelopment Plan for Richfield RedevelopmentProject Area dated June 14, 1993 and the Tax Increment Financing Plan for the ILN Tax Increment Financing District adopted October 21, 1985 and modified on November 25, 1985, January 12, 1987, September 18, 1989, May 17, 1993, March 24, 1994 and October 21, 1996 is recommended. Boundaries of the ILN Tax Increment Financing District The boundary for ILN Tax Increment Financing District is not being modified. City of Richfield Modification to the Plan for the ILN Tax Increment Financing District Page 2 a- Estimated Project Costs This modification authorizes the HRA to expend tax increment from the ILN Tax Increment Financing District for qualified activities identified in the budget of any of the Tax Increment Financing Districts and the Richfield Redevelopment Project Area. The Shops at Lyndale and Meridian Crossing budgets listed below represent an update to the budget for project activities completed since the original budget was adopted. These budgets also reflect the maximum qualified costs as certified or to be certified by the developers and which may be paid through tax increment. Additional information is provided in the Contracts for Private Development by and between the developers and the HRA. The Candlewood Hotel Project budget reflects an increase in the budget to authorize additional project expenditures. The Public Improvements budget are dollars that are being reallocated for public improvements within the ILN Tax Increment Financing District and Richfield Redevelopment Project Area. City of Richfield Modification to the Plan for the ILN Tax Increment Financing District Page 3 Meridian Candlewood Hotel Sources of Funds Shops at Lyndale Crossings Project Public Improvements Tax increment revenue 30,000,000 52,000,000 1,300,000 0 Bond proceeds 0 0 1,000,000 Total Sources of Funds 30,000,000 52,000,000 1,300,000 1,000,000 Uses of Funds Land /building acquisition 15,000,000 26,000,000 1,105,000 0 Site imp. /prep. costs 0 65,000 0 Streets and sidewalks 0 0 900,000 Loan /note int. payments 12,000,000 20,800,000 0 0 Administrative costs 3,000,000 5,200,000 130,000 100,000 Bond deposit 0 0 0 Total Uses of Funds 30,000,000 52,000,000 1,300,000 1,000,000 City of Richfield Modification to the Plan for the ILN Tax Increment Financing District Page 3 2-10 APPENDIX A BOUNDARY MAP OF RICHFIELD REDEVELOPMENT PROJECT AREA AND THE ILN TAX INCREMENT FINANCING DISTRICT City of Richfield Modification to the Plan for the ILN Tax Increment Financing District A -1 I\ j Il' J1I Li h l BOB u LACER LPrCN c naw l II I'' II / 0 ° ' M N aY 0000p00 hCROWN 0 0000 0000 , 00 00000 000o E ,, 0O 0000 0000 EG" 0000, I=000 KwX 0000 000 amomJLAMS 0000 DOD A '"° °o 00000 WIG LMOLOT HUMBOLDT 000 OQ oo BERSON OUPW 0 I; 000 °"°" AX ODOD ® COLFAX WYAW C700D E]i BRYAW Aa001 I—f KAY GAR'JR bE • BE Q I 1 CARREL AYE E` BOOBOO L__J 0 °""° PLEASW p, OOO eoo 00 F NCQ1EfAME ST oo0oeeo 0 000eeo 0 00 2 OOOOBBOL.C C c a° OUNTON 0oB000O00 00 E , o, a ( OOe000 a AZ 000000 °O °O°o °°° s P======== 000000000 PAW COIANAM °°°0°° o COLLIAMM H 000000000 °°° B1OT P Ems'°` tam El I lu D000C 000000000 E; 0000 000000000 Im FF- ciao BLOONsarcm o0 0 0 000000 0M DOO u uuu A& o00 0 OOO nw o X000 MYTH 21Sr Sao STANDSH ZL, - Lo rz z mn n 6 0 0 r 3p i Z ;u 2 cl) O m g .9 9 1 I I -1( 3 Planning Commission Letter October 27, 1998 Agenda Section: New Business Item #: 3 Letter #: 45 GENERAL INFORMATION Type of Request: Consideration of a resolution finding that the Modification to the Redevelopment Plan and the Tax Increment Financing (TIF) Plan for the Urban Village Tax Increment Financing District are consistent with the Richfield Comprehensive Plan. Zoning: PC -2 (planned general commercial) Existing Land Use: Commercial and single family residential Proposed Land Use: Mixed Use Development Comp. Plan: Regional Commercial /Office and High Density Attached Single Family Residential References: Chapter 469 of Minnesota State Statutes requires that the Planning Commission review Redevelopment and Tax Increment Financing Plans for consistency with the City's Comprehensive Plan. A written opinion must be provided within 30 days of the date review is requested. HRA: Planning Commission approval would facilitate review of the modifications by the HRA on November 16, 1998. ANALYSIS Background: Richfield State Agency proposed a comprehensive redevelopment of the southeast quadrant of 66th Street and Lyndale Avenue to the BRA in April. The HRA expressed an interest in the RSA proposal and on September 21, 1998, directed staff to prepare a development agreement with Richfield State Agency. On October 13, 1998 the Planning Commission heard a presentation by RSA on the project concept. 3 -1 Proposal: The comprehensive proposal submitted by RSA includes a mixture of new housing choices, retail, office and public spaces. The proposal provides 73,000 square feet of additional office /retail space, 210 housing units and a 600 space parking ramp and includes the relocation of McDonald's to the corner of 67th and Lyndale. The housing types would include assisted living housing and townhome style apartments for the Pleasant/Grand block, if included. The project offers the following benefits: New housing choices, public spaces, transit integration and retail in an urban village context. Housing types filling two missing market pieces in Richfield: market rate rental townhomes and assisted living. TIF committed to the parking ramp. Local/neighborhood development team involved. Pleasant/Grand neighborhood has been an active participant and provided a purchase option given perceived changes to quality of life due to football field and pending redevelopment to the west. Consistent with Comprehensive Plan and draft Richfield Lake Master Plan. RSA is requesting tax increment financing for the project. A new 25 -year tax increment district would be created. Some properties are currently in the LHN tax increment district but will be dropped from the LHN and added to the Urban Village district. The current $8 million market value for the proposed site would increase to at least $30 million upon project completion. A completed project would generate $840,000 annually in property taxes. The amount of tax increment provided to the project would be approximately $6 million. Tax increment financing would support the parking ramp, land costs on the single family block, the park -like spaces and right -of -way improvements. The following Comprehensive Plan goals are met by the proposed development: Encourage and support the development of strong commercial districts that respect the values and standards of the citizens of Richfield. (ONE -7) Provide for high- density multiple dwellings within the redeveloped regional and community commercial areas. (ONE - 10) Increase the density of housing along arterials and collector streets and in mixed use development subareas to replace units lost over the last decade. (ONE -17) Provide for a more diverse housing stock by ... increasing the number of high- density [multiple] units. (ONE -17) k ACTION TO BE TAKEN Recommendation: Adopt the attached resolution finding that the Modification to the Redevelopment Plan and the Tax Increment Financing (TIF) Plan for the Urban Village Tax Increment Financing District are consistent with the Richfield Comprehensive Plan. Basis: I . The modification of the redevelopment plan requires a finding of consistency by the Planning Commission. 2. The proposed planned unit development concept is consistent with the Comprehensive Plan designation for the area of Regional Commercial - Office. 3. The Regional Commercial -Office designation encourages mixed use developments with commercial uses and multiple family housing. 4. The tax increment financing will be used to pay for the parking ramp and extensive landscaping. Alternative: Reject the attached resolution, finding that the proposed use of the subject property does not conform to the Comprehensive Plan. 3_3 Minnesota State Statutes 469.027 Redevelopment plan. Any person may submit a redevelopment plan to an authority, or an authority may consider a redevelopment plan on its own initiative. An authority shall immediately transmit the plan to the planning agency of the city in which the area to be redeveloped is situated, for its study, or, if no planning agency exists, the plan shall be submitted to an agency indicated by the governing body of the city. An authority shall request the written opinion of the planning or other agency on all redevelopment plans submitted to it prior to approving those redevelopment plans, and the planning or other agency shall submit its written opinion within 30 days. 469.175 Subd. 3, Municipalityapproval. A county auditor shall not-certify the original net tax capacity of a tax increment financing district until the tax increment financing plan proposed for that district has been approved by the municipality in which the district is located. If an authority that proposes to establish a tax increment financing district and the municipality are not the same, the authority shall apply to the municipality in which the district is proposed to be located and shall obtain the approval of its tax increment financing plan by the municipality before the authority may use tax increment financing. The municipality shall approve the tax increment financing plan only after a public hearing thereon after published notice in a newspaper of general circulation in the municipality at least once not less than ten days nor more than 30 days prior to the date of the hearing. The published notice must include a map of the area of the district from which increments may be collected and, if the project area includes additional area, a map of the project area in which the increments may be expended. The hearing may be held before or after the approval or creation of the project or it may be held in conjunction with a hearing to approve the project. 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) that the proposed tax increment financing district is a redevelopment district, a renewal or renovation district, a mined underground space development district, a housing district, a soils condition district, or an economic development district; if the proposed district is a redevelopment district or a renewal or renovation district, the reasons and supporting facts for the determination that the district meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing and retained and made available to the public by the authority until the district has been terminated. 2) that the proposed development or redevelopment, in the opinion of the municipality, would not reasonably be expected to occur solely through private investment within the rew-onably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this clause do not apply if the district is a qualified housing district, as defined in section 273.1399, subdivision 1. 3) that the tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole. PLANNING COMMISSION CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. RESOLUTION OF THE RICHFIELD PLANNING COMMISSION FINDING THAT THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE TAX INCREMENT FINANCING PLAN FOR URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City Council for the City of Richfield, Minnesota, (the "City ") has proposed to adopt a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and a Tax Increment Financing Plan for Urban Village Tax Increment Financing District (collectively, the "Program and Plans ") and has submitted the Program and Plans to the Richfield Planning Commission (the "Commission ") pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, and WHEREAS, the Commission has reviewed the Program and Plans to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Program and Plans conform with the general plans for the development and redevelopment of the City as a whole. Adopted this 27th day of October, 1998. Daniel Linnihan, Chair ATTEST: Mitchell Hadley, Secretary 3-q I Draft as of October 21, 1998 Draft for Planning Commission Review z MODIFICATION TO THE REDEVELOPMENT PROGRAM Nfor the IN THE RICHFIELD REDEVELOPMENT PROJECT AREA and the TAX INCREMENT FINANCING PLAN for the establishment of URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT a redevelopment district) M999A RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD HENNEPIN COUNTY STATE OF MINNESOTA Public Hearing: November 23, 1998 A iopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville, Minnesota 55113 -1105 Phone: (651) 697 -8500 Fax: (651) 697 -8555 E -mail: info @ehlers - inc.com Web Site: www.ehlers - inc.com TABLE OF CONTENTS for reference purposes only) Subsection 2 -21. X 2 -11 SECTION I - MODIFICATION %TO THE REDEVELOPMENT PLAN FOR Assessment Agreements ........ ............................... 0 REDEVELOPMENT PROJECT AREA ............ ............................... 1 -1 Foreword..: 1 1 Subsection B: . ' 'Statement of Public Purpose ...... ............................... 1 -1 rte Subsection;F. Boundaries of the Richfield Redevelopment Project Area .............. 1 -1 Subsection`G. Parcels in Acquisition ........... ............................... 1 -1 Subsection J. Development Activities in the Richfield Project Area ................. 1 -1 Subsection 2 -28. State Tax Increment Financing Aid ............................... 2 -17 SECTION II - TAX INCREMENT FINANCING PLAN FOR County Road Costs ............. ............................... THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ................. 2 -1 Subsection 2 -1. Foreword ........................ ............................2 1 Subsection 2 -2. Statutory Authority ............. ............................... 2 -1 Subsection 2 -3. Statement of Objectives .......... ............................... 2 -1 Subsection 2 -4. Redevelopment Plan Overview .... ............................... 2 -1 Subsection 2 -5. Legal Description of Property in Urban Village TIF District ............ 2 -2 Subsection 2 -6. Classification of Urban Village Tax Increment Financing District ........ 2 -2 Subsection 2 -7. Original Tax Capacity and Tax Rate ............................... 2 -3 Subsection 2 -8. Estimated Captured Net Tax Capacity Value /Increment ................ 2 -4 Subsection 2 -9. Property To Be Acquired ......... ............................... 2 -4 Subsection 2 -10. Uses of Funds .................. ............................... 2 -5 Subsection 2 -11. Sources of Revenue /Bonded Indebtedness .......................... 2 -5 Subsection 2 -12. Definition of Tax Increment Revenues ............................. 2 -6 Subsection 2 -13. Duration of Urban Village Tax Increment Financing District ............ 2 -6 Subsection 2 -14. Estimated Impact on Other Taxing Jurisdictions ...................... 2 -7 Subsection 2 -15. Modifications to Urban Village Tax Increment Financing District ........ 2 -7 Subsection 2 -16. Administrative Expenses ......... ............................... 2 -8 Subsection 2 -17. Limitation of Increment .......... ............................... 2 -9 Subsection 2 -18. Use of Tax Increment ........... ............................... 2 -10 Subsection 2 -19. Notification of Prior Planned Improvements ....................... 2 -10 Subsection 2 -20. Excess Tax Increments .......... ............................... 2 -11 Subsection 2 -21. Requirements for Agreements with the Developer ................... 2 -11 Subsection 2 -22. Assessment Agreements ........ ............................... 2 -11 Subsection 2 -23. Administration of Urban Village Tax Increment Financing District ...... 2 -12 Subsection 2 -24. Financial Reporting Requirements ............................... 2 -12 Subsection 2 -25. Municipal Approval and Public Purpose ........................... 2 -14 Subsection 2 -26. Fiscal Disparities Election .... ............................... . 2 -15 Subsection 2 -27. Other Limitations on the Use of Tax Increment ..................... 2 -16 Subsection 2 -28. State Tax Increment Financing Aid ............................... 2 -17 Subsection 2 -29. County Road Costs ............. ............................... 2 -18 Subsection 2 -30. Economic Development and Job Creation .......................... 2 -18 Subsection 2 -31. Summary ........................ ...........................2 18 APPENDIX A - PROJECT DESCRIPTION .............. ............................... A -1 APPENDIX B - BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT .......... B -1 APPENDIX C - LECAL-DESCRIPTION OF PROPERTY TO BE INCLUDED IN URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ..................... C -1 APPENDIX1 - ESTIMATED CASH FLOW FOR URBAN VILLAGE TAX INCREMENT t , FINANCING DISTRICT ....................... ............................... D -1 APPENDIX'E - MINNESOTA BUSINESS ASSISTANCE FORM MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) ...... E -1 APPENDIX F- REDEVELOPMENT QUALIFICATIONS FOR URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT ............ ............................... F -1 APPENDIX G - BUT /FOR SUPPORTING DOCUMENTATION ........................... G -1 SECTION I MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA Foreword d The following text represents a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area: This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area. Generally, the substantive changes include.ri bdifying the Redevelopment Plan for the Richfield Redevelopment Project Area to establish the Urban Village Tax Increment Financing District. For-further information, a review of the Redevelopment Plan for the Richfield Redevelopment Project Area, adopted June 14, 1993, is recommended. It is available in the Community Development Department at the City of Richfield. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Richfield Redevelopment Project Area. Subsection B. Statement of Public Purpose See also the State of Public purpose found in Section B of the- Redevelopment Plan for the Richfield Redevelopment Project Area, dated June 14, 1993. Subsection F. Boundaries of the Richfield Redevelopment Project Area The boundary for the Richfield Redevelopment Project Area is not being modified. See Appendix B of the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District for a map of the Richfield Redevelopment Project Area and the District. Subsection G. Parcels in Acquisition The HRA may acquire the parcels in the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District. However, it is anticipated that the developers will be responsible for acquisition. Subsection J. Development Activities in the Richfield Project Area The Redevelopment Plan for the Richfield Redevelopment Project Area is hereby modified to include redevelopment and development activities to facilitate the construction of the following projects: a. Parking facility b. Assisted living C. Rental townhomes d. Commercial space e. Public facilities f. Public utilities g. Public roadways and sidewalks City of Richfield Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area 1 -1 SECTION II TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT Subsection 2 -1. Foreword' The City of Richfield (City "), the Richfield Housing and Redevelopment Authority (the "HRA "), staff and consultants have prepar6'd the following information to expedite the establishment of the Urban Village Tax Increment,F,inancing'District, a redevelopment tax increment financing district, located in the Richfield Redevelopment"Project Area. Subsection2 -2. Statutory Authority A „f- Withlri the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City and HRA have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.001 through 469.047, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act” or "TIF Act "), to assist in financing public costs related to this project. This Section contains the Tax Increment Financing Plan (the "Plan ") for Urban Village Tax Increment Financing District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. Subsection 2 -3. Statement of Objectives Urban Village Tax Increment Financing District currently consists of 21 parcels of land and adjacent and internal rights -of -way. Urban Village Tax Increment Financing District is created to facilitate construction of approximately 500-650-car parking ramp, approximately 78 units of assisted living, approximately 132 rental town house units and up to 80,000 sf of commercial space in the City of Richfield. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. The activities contemplated in the present Modification to the Redevelopment Plan and the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Urban Village Tax Increment Financing District and the Richfield Redevelopment Project Area. Subsection 2 -4. Redevelopment Plan Overview Property to be Acquired - Selected property located within Urban Village Tax Increment Financing District may be acquired by the City or HRA and is further described in this Plan. 2. Relocation - Complete relocation services are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City or HRA may sell to a developer selected City of Richfield Tar Increment Financing Plan for Urban Village Tax Increment Financing District 2 -1 properties that they may acquire within Urban Village Tax Increment Financing District or may lease land or facilities to a developer. 4. The Cityor HRA _may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public streets work within Ur`ban.Village Tax Increment Financing District. Subsection 2 -5. ' L'egal Description of Property in Urban Village Tax Increment Financing District Urban Viii; ge.,Tax Increment Financing District encompasses all property and adjacent rights -of -way identified bythe' xxx 1 listed below. Please see the map.in Appendix B for further information on the location of,Urban ;Village Tax Increment Financing District. f! Parcel Numbers Address 27- 028 -24 -32 -0125 6645 Harriet Avenue South 27- 028 -24 -32 -0123 27- 028 -24 -32 -0124 27- 028 -24 -32 -0126 27- 028 -24 -32 -0062 27- 028 -24 -32 -0045 27- 028 -24 -32 -0011 27- 028 -24 -32 -0012 27- 028 -24 -32 -0013 27- 028 -24 -32 -0014 27- 028 -24 -32 -0015 27- 028 -24 -32 -0016 27- 028 -24 -32 -0017 27- 028 -24 -32 -0018 27- 028 -24 -32 -0028 27- 028 -24 -32 -0029 27- 028 -24 -32 -0030 27- 028 -24 -32 -0031 27- 028 -24 -32 -0032 27- 028 -24 -32 -0033 27- 028 -24 -32 -0034 6625 Lyndale Avenue South 407 66" Street West 6701 Lyndale Avenue South 6709 Lyndale Avenue South 6700 Garfield Avenue South 301 66'h Street West 6614 Pleasant Avenue 6620 Pleasant Avenue 6621 Grand Avenue South 6615 Grand Avenue South 6607 Grand Avenue South 6601 Grand Avenue South 30766 h Street West 6626 Pleasant Avenue 6630 Pleasant Avenue 6640 Pleasant Avenue 6644 Pleasant Avenue 6645 Grand Avenue South 6635 Grand Avenue South 6627 Grand Avenue South Subsection 2 -6. Classification of Urban Village Tax Increment Financing District The City and HRA, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 io 469.179, as amended, inclusive, findsthat Urban Village Tax Increment Financing District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authorityfinds by resolution that one of the following conditions, reasonably distributed throughout the district, exists: 1) parcels consisting of 70 percent of the area in the district are occupied by City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -2 buildings, streets, utilities, or other improvements and more than 50percent of the buildings, not including outbuildings, are structurally substandard to a degree requiringsubsiantial renovation or clearance; or 2) The property' consists of vacant, unused, underused, inappropriately used, or r, infrequently used railyards, rail storagefacilities or excessive or vacated railroad rights =of -way. r b) i,For purposes of this subdivision, "structurally substandard" shall mean containing defects in strucl ral elements or a combination ofdeficiencies in essential utilities andfacilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of suf cient total significance to justify substantial renovation or clearance. c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost ofconstructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost ofplumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or other improvements until 15 percent of the area of the parcel contains improvements. In meeting the statutory criteria described above, the City and HRA rely on the following facts and findings: Urban Village Tax Increment Financing District is a redevelopment district consisting of 21 parcels. An inventory of the parcels shows that at least 70 percent of the parcels in Urban Village Tax Increment Financing District are occupied as defined in the TIF Act. An inspection of the buildings located within Urban Village Tax Increment Financing District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix F) Subsection 2 -7. Original Tax Capacity and Tax Rate Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for Urban Village Tax Increment Financing District is based on the market values placed on the property by the assessor in 1998 for taxes payable 1999. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 1999) the amount by which the original value has increased or decreased as a result of: City of Richfield Tax Increment Financing Plan for Urban Village Tar Increment Financing District 2 -3 I . change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to,adjustments, negotiated or court- ordered abatements; 4. change in' the use of the property and classification; 5. change1n s\te law'governing class rates; or 6. change,i)&connection with previously issued building permits. In any year in,which the"'current Net Tax Capacity value of Urban Village Tax Increment Financing District declines below the:ONTC, no value will be captured and no tax increment will be payable to the City or h V HRA.. The'original local tax rate for Urban Village Tax Increment Financing District will be the local tax rate for taxes payable 1999. The Original Tax Capacity and the Original Local Tax Rate for Urban Village Tax Increment Financing District appear in the table below. Original Tax Capacity Value $271,556 Percent Retained by City 100% Original Local Tax Rate 1.38585 Subsection 2 -8. Estimated Captured Net Tax Capacity Value/Increment Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of Urban Village Tax Increment Financing District, within the Richfield Redevelopment Project Area, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The City and HRA request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 1999. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capacity upon Completion of Project (PTC) 840,091 Original Estimated Net Tax Capacity (ONTC) 271,556 Estimated Captured Tax Capacity (CTC) 568,535 Estimated Annual Tax Increment CTC x Local Tax Rate) 787,904 Subsection 2 -9. Property To Be Acquired The City or HRA may acquire any parcel within Urban Village Tax Increment Financing District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City or HRA only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and /or City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 24 development to accomplish the uses and objectives set forth in this plan. The following are conditions under which properties not designated to be acquired may be acquired: The City or HRA may'acquire property by gift, dedication, condemnation or direct purchase from willing sellers; in, order to achieve the objectives of this tax increment financing plan. Such N. acquisitions will.be,6ndertaken only when there is assurance of funding to finance the acquisition and Sub'sectio`n 2 -10:" Uses of Funds Cu r "rentlyunder consideration for Urban Village Tax Increment Financing District is a proposal to facilitate construction of approximately 500 to 650 car parking ramp, approximately 78 units of assisted living, approximately 132 rental town house units and up to 80,000 sf of commercial space. The City and HRA have determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibility of the development or redevelopment of property in and around Urban Village Tax Increment Financing District. To facilitate the establishment and development or redevelopment of Urban Village Tax Increment Financing District, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Urban Village Tax Increment Financing District is outlined in the following table. Uses of Funds Total Land Acquisition 2,000,000 Site Improvements 2,000,000 Public Improvements - public road 7,000,000 Public Utilities - parkway 2,000,000 Housing Trust Fund 2,000,000 Interest 8,750,000 Administrative Costs (up to 10 %) 2,500,000 TOTAL $26,250,000 Estimated costs associated with Urban Village Tax Increment Financing District are subjectto change among categories without a modification to this Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within Urban Village Tax Increment Financing District will be spent on activities related to development or r: °.:levelopment outside of Urban Village Tax Increment Financing District but within the boundaries of the Richfield Redevelopment Project Area, (including administrative costs, which are consideredto be spent outside of Urban Village Tax Increment Financing District) subject to the limitations as described in this Plan. Subsection 2 -11. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, public utilities and site improvement costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City or HRA reserves the right to use other sources of revenue legally applicable to the Modification to the City of Richfield Tax Increment Financing Plan for Urban village Tax Increment Financing District 2 -5 Redevelopment Plan and the Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, to pay for the estimated public costs. The City or HRA reserves the right to incur bonded indebtedness or other indebtedness as a result of the Plan. As presently proposed; the,project will be financed by a special assessment bond issue and a pay -as- you -go note. Add itionaF,indebted6ess may be required to finance other authorized activities. The total principal amount of bonded; indebtedness or other indebtedness related to the use of tax increment financing will not exceed withouvii modification to the Plan pursuant to applicable statutory requirements. This provisiori,does not obligate the City or HRA to incur debt. The City or HRA will issue bonds or incur other debt 6nly upon the determination that such action is in the best interest of the City. The City or HRA may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or.HRA or to reimburse the developer on a "pay -as- you -go" basis for eligible activities paid for by the developer. The estimated sourcesof funds for Urban Village Tax Increment Financing District are contained in the table below. Sources of Funds Total Tax Increment 25,D00,000 Local Contribution 1,250,000 TOTAL 26,250,000 Subsection 2 -12. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenuesderived from a tax increment financing district include all of the following potential revenue sources: 1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Subsection 2 -13. Duration of Urban Village Tax Increment Financing District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of Urban Village Tax Increment Financing District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of Urban Village Tax Increment Financing District will be 25 years from the date of receipt of the first increment by the City or HRA. The date of receipt by the City of Richfield of the first tax increment will be approximately 2001. Thus, it is estimated that Urban Village Tax Increment Financing District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2026, or when the Plan is satisfied. The City or HRA does reserve the right to decertify Urban Village Tax Increment Financing District prior to the legally required date. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -6 Subsection 2 -14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on otheitaxing jurisdictions assumes construction which would have occurred without the creation of Urban--Village -Tax Increment Financing District. If the construction is a result of tax increment financing;, the impact is $0 to other entities. Notwithstanding, the fact that the fiscal impact on the other taxing junsdictoris is $0 due to the fact that the construction would not have occurred without the assistance of the City)or'HRA, the following estimated impact of Urban Village Tax Increment Financing District would be`as %follows if the "but for" test was not met: r IMPACT ON TAX BASE 1997/1998 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Project Completion to Entity Total Hennepin County 936,486,071 568,535 0.0607% I.S.D. No. 280 26,436,495 568,535 2.1506% City of Richfield 17,976,447 568,535 3.1627% IMPACT ON TAX RATES The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1997 /Pay 1998 rate. The total net capacity for the entities listed above are based on Pay 1998 figures. Urban Village Tax Increment Financing District will be certified under the actual 1998/1999 rates, which were unavailable at the time this Plan was prepared. Subsection 2 -15. Modifications to Urban Village Tax Increment Financing District In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of the Ricl field Redevelopment Project Area or Urban Village Tax Increment Financing District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determ i nation was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City or HRA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City or HRA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -7 1997/1998 Percent Potential Extension Rates of Total CTC Taxes Hennepin County 0.383860 27.70% 568,535 218,238 I.S.D. No. 280 0.643340 46.42% 568,535 365,761 City of Richfield 0.271250 19.57% 568,535 154,215 Other 0.087400 6.31% 568,535 49,690 Total 1.385850 100.00% 787,904 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1997 /Pay 1998 rate. The total net capacity for the entities listed above are based on Pay 1998 figures. Urban Village Tax Increment Financing District will be certified under the actual 1998/1999 rates, which were unavailable at the time this Plan was prepared. Subsection 2 -15. Modifications to Urban Village Tax Increment Financing District In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of the Ricl field Redevelopment Project Area or Urban Village Tax Increment Financing District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determ i nation was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City or HRA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the City or HRA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -7 of the original plan. The geographic area of Urban'Village Tax Increment Financing District may be reduced, but shall not beC . enlarged after five years, following the date of certification of the original net tax capacity by the county auditor. If redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district-meets the criteria of M.S., Section 469.174, Subd. 10, paragraph (a), clauses (1) to (5), must be documented In writing and retained. The requirements of this paragraph do not apply if (1) the only modu5cati6n is elimination of parcel(s) from the Richfield Redevelopment Project Area or Urban Village Tax Increment Financing District and (2) (A) the current net tax capacity of the parcel(s) eliminated from Urban Village Tax Increment Financing District equals or exceeds the net tax capacity ofthose parcel(s) in Urban Village Tax Increment Financing Districts original net tax capacity or (B) the City agrees that, notwiths ending M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from Urban Village Tax Increment Financing District. The City or HRA must notify the County Auditor of any modification that reduces or enlarges the geographic area of Urban Village Tax Increment Financing District or the Richfield Redevelopment Project Area. Modifications to Urban Village Tax Increment Financing District in the form of budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 2 -16. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the City or HRA, other than: 1. amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and eng i neeri ngsery ices, d i rectly connected with the physical development of the real property in the district; 2. relocation benefits paid to or services provided for persons residing or businesses located in the district; or 3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment maybe used to pay any authorized and documented administrative expenses for Urban Village Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Richfield Redevelopment Project Area, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with Urban Village Tax Increment Financing District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to the City or HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -8 Subsection 2 -17. Limitation of Increment Pursuant to M.S., Section 469.176, Subd. 1(a), no tax increment shall be paid to the City or HRA for Urban Village Tax Increment Financing District after three (3) years from the date of certification of the Original Net Tax Capacity value ',of the taxable property in Urban Village Tax Increment Financing District by the County Auditor unless within the three (3) year period: a) bonds have been issued pursuant to M.S., Section 469.178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to M.S., Sections 469. "152 to 469.165, or l ( b),:"` the City or HRA has acquired property within Urban Village Tax Increment A %" Financing District, or c) the City or HRA has constructed or caused to be constructed public improvements within Urban Village Tax Increment Financing District. The bonds must be issued, or the City or HRA must acquire property or construct or cause public improvements to be constructed by approximately November, 2001. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation ofproperty 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 authority 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 that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority 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 incrementfrnancing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision... For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or HRA or a property owner must improve parcels within Urban Village Tax Increment Financing District by approximately November, 2002. City of Richfield Tax Increment Financing Plan for Urban Village Tar Increment Financing District 2 -9 Subsection 2 -18. Use of Tax Increment The City or HRA hereby deteimines that it will use 100 percent of the captured net tax capacity of taxable property located in Urban- Village,Tax Increment Financing District for the following purposes: 1. to pay ta principal of and interest on bonds used to finance a project; 2. to frian e, or otherwise pay public redevelopment costs of the Richfield Redevelopment f Project' Area pursuant to the M.S., Sections 469.001 to 469.047; 3. tto pay for project costs as identified in the budget; to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5" to pay principal and interest on any loans, advances or other payments made to the City or HRA or for the benefit of the Richfield Redevelopment Project Area by the developer; J 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and interest on tax increment bonds or bonds issued pursuant to the Plan or pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in Urban Village Tax Increment Financing District will be paid by Hennepin County to the City of Richfield for the Tax Increment Fund of said Urban Village Tax Increment Financing District. The City or HRA will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City or HRA administration (up to 10 percent) and the costs of activities within the Richfield Redevelopment Project Area. Subsection 2 -19. Notification of Prior Planned Improvements The City or HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of Urban Village Tax Increment Financing District enlargement with a listing of all properties within Urban Village Tax Increment Financing District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original value of Urban Viliage Tax Increment Financing District by the value of improvements for which a building permit was issued. Pursuant to M.S., Section 469.177, Subd. 4, the City has reviewed the area to be included in Urban Village Tax Increment Financing District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the Plan by the City and HRA. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -10 Subsection 2 -20. Excess Tax Increments Pursuant to M.S., Section,-469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs - authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 475:61, Subd. 3, the City or HRA shall use the excess amount to do any of the following: f! \` 1. /_{ prepay any outstanding bonds; 2.,:` {discharge the pledge of tax increment therefor; 3`' \; pay into an escrow account dedicated to the payment of such bonds; or 4."?\ return the excess to the County Auditor for redistribution to the .respective taxing Nv jurisdictions in proportion to their local tax rates. j{ f In,addition, the City or HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in Urban Village Tax Increment Financing District or the Richfield Redevelopment Project Area. Subsection 2 -21. Requirements for Agreements with the Developer The City or HRA will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City or HRA to demonstrate the conformance of the development with city plans and ordinances. The City or HRA may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in Urban Village Tax Increment Financing District as set forth in the Plan shall at any time be owned by the City or HRA as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178, to which tax increments from property acquired is pledged, without the City or HRA having, prior to acquisition in excess of 25 percent of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City or HRA should the development or redevelopment not be completed. Subsection 2 -22. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City or HRA may enter into an agreement in recordable form with the developer of property within Urban Village Tax Increment Financing District which establishes a minimum market value of the land and completed improvements for the duration of Urban Village Tax Increment FinancingDistrict. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements 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. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -11 Subsection 2 -23. Administration of Urban Village Tax Increment Financing District Administration of Urban Village Tax Increment Financing Districtwill be handled by the HRA Director of the City of Richfield ;" Subsection 2 -24. Financial Reporting Requirements A. Filing with StatejAuditor, County Auditor, County Board and School Board: Pursuant to M.S., Section 469:175; Subd. 5, the City or HRA must file an annual disclosure report for all tax increment financing districts, including Urban Village Tax Increment Financing District. The report shall be filed with.the,County Board, County Auditor, School Board, and the State Auditor on or before July 1 (August I ,beginning for reports to be filed in 1999) of each year. The report to be filed by the City or HRA shall include the following information: 1. the amount and source of revenue in the tax increment account; 2. the amount and purpose of expenditures from the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of Urban Village Tax Increment Financing District; 5. the captured net tax capacity retained by the City or HRA; 6. the captured net tax capacity shared with other taxing districts; 7. the tax increment received; and 8. any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City showing: 1. the tax increment received and expended in that year, 2. the original net tax capacity, 3. captured net tax capacity, 4. amount of outstanding bonded indebtedness, 5. the amount of Urban Village Tax Increment Financing District's increment paid to other governmental bodies, 6. the amount paid for administrative costs, 7. the sum of increments paid, directly or indirectly, for activities and improvements located outside of Urban Village Tax Increment Financing District, and 8. any additional information the City or HRA deems necessary. C. State Auditor filing for Urban Village Tax Increment Financing District: Pursuant to M.S., Section 469.175, Subd. 6, the City or HRA must annually submit to the State Auditor, on or before July 1 (August 1 beginning for reports to be filed in 1999), a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in Urban Village Tax Increment Financing District; 2. permit comparison and reconciliation with the City and HRA's accounts and financial reports; 3. permit auditing of the funds expended on behalf of Urban Village Tax Increment Financing City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -12 District or that is funded in part or whole through the use of a development account funded with tax increments from other tax increment districts or with public money; and 4. be consistent, with generally accepted accounting principles. The financial report mu's't also - include the following: 1. the ..original net tax capacity of Urban Village Tax Increment Financing District; 2. ', "the captured net tax capacity of Urban Village Tax Increment Financing District, including i ,the-dmount of any captured net tax capacity shared with other taxing districts; 3'" the amount budgeted under the Plan, and the actual amount expended for, at least, the following categories ( for the reporting P eriod and for the duration of Urban Village Tax Increment Financing District): a. acquisition of land and buildings through condemnation or purchase; b. site improvements or preparation costs; C. installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d. administrative costs, including the allocated cost of the city; e. public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and 4. the total costs of the property to the City or HRA and the price paid the developers (for properties sold to developers); 5. the amount of increments rebated or paid to developers or property owners for privately financed improvements or other qualifying costs, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in Urban Village Tax Increment Financing District. D. State Auditor filing for all Tax Increment Financing Districts: Pursuant to M.S., Section 469.175, Subd. 6a, the City or HRA must also annually report to the State Auditor before or on July 1 (August I beginning for reports to be filed in 1999) of each year the following amounts for the entire City: 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar year; and 2. the 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; and for each tax increment financing district within the City: 1. the type of tax increment financing district; 2. the date on which the district is required to be decertified; 3. the amount of any payments and the value of in -kind benefits, such as physical improvements and the uses of building space, that are financed with revenues derived from increments and are provided to another governmental unit (other than the municipality) during the preceding calendar year; 4. the 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 outside of each district; and City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -13 any additional information that the State Auditor may require. Copies of this report must'also be provided to the county and school district boards. If the City fails to make a disclosure orsubrriita report containing the information required by Section 469.175 sudb. 5, 6 and 6a, the State Auditor willdirect1he County Auditor to hold the distribution of tax increment from Urban Village Tax Increment,Financing District. The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Urban Village.:Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1: Finding that Urban Village Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). Urban Village Tax Increment Financing District consists of 21 parcels, with plans to redevelop the area for commercial purposes. At least 70 percent of the area in the parcels in Urban Village Tax Increment Financing District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in Urban Village Tax Increment Financing District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonablyforeseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Urban Village Tax Increment Financing District permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely throughprivate investment within the reasonablyforeseeablefuture: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. In order to facilitate the project, the developer must buy single family homes at a price higher than rental town house project will support. Further, since this is an urban setting, no land is available for parking. Therefore, the developer must build approximately 600 car parking ramp. Due to this high cost of redevelopment, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter as justification that he would not have gone forward without tax increment assistance( see attachment in Appendix G). The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF Districtpermitted by the Plan: The City supported this finding on the grounds that the cost of constructing site improvements, a public ramp and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. Therefore, the City reasonably City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -14 determines that no other redevelopment of any kind is anticipated on this site without substantially similar assistance being provided to the development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of Urban Village Tax, crement Financing District and the use of tax increments has been performed as described above" If all development which is proposed to be assisted with tax increment were to occunin Urban Village Tax Increment Financing District, the total increased market value would be up,tb 21,828,175. The present value of tax increments from Urban Village Tax Increment Financing District is estimated to be $8,579,438. It is the Council's finding that no development wit -a market value of greater than $4,469,236 would occur without tax.increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition, public improvements, site improvements and public utilities in the general area of the Urban Village Tax Increment Financing District (see Cashflow in Appendix D). 3. Finding that the Tax Increment Financing Plan for Urban village Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on October 27, 1998. The Planning Commission found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Planfor Urban village Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. The project to be assisted by Urban Village Tax Increment Financing District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. Additional findings are set forth in the Authorizing Resolution of the City. Subsection 2 -26. Fiscal Disparities Election Pursuant to MS., Section 469.177, Subd. 3, the City or HRA may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause a, (outside Urban Village Tax Increment Financing District) are followed, the following method of computation shall apply: 1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. 2) The county auditor shall exclude the retained captured net tax capacity ofthe authorityfrom City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -15 the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of. the authority as well as the net tax capacity of the local taxing districts. The tax generated by'the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment: of the authority. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within Urban Village Tax Increment Financing District) -are followed, the following method of computation shall apply: 1), . %The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial- industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authorityhas designated, in its tax incrementfinancing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. 2) The county auditor shall exclude the retained captured net tax capacity of the authorityfrom the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City or HRA shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the City or HRA elected. The City of Richfield will choose to calculate fiscal disparities by clause b. According to M.S., Section 469.177, Subd. 3: c) The method ofcomputation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its eler'ion from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2 -27. Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the Richfield Redevelopment Project Area pursuant to the M.S., Sections 469.001 to 469.047; These revenues shall not be used to circumvent existing levy limit law. No revenues derived from City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -16 tax increment shall be used for the acquisition, construction, renovation, operation or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovaticn.df a parking structure, a commons area used as a public park or a facility used for social, recreafional or conference purposes and not primarily for conducting the business of the municipality Pooling.Lirriitations. At least 75 percent of tax increments from Urban Village Tax Increment Financing District must be expended on activities in Urban Village Tax Increment Financing District o to`pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of Urban Village Tax Increment Financing District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of Urban Village Tax Increment Financing District. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from Urban Village Tax Increment Financing District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of Urban Village Tax Increment Financing District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, skyways and parking facilities for the site. The allocated administrative expenses of the City or HRA, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2 -28. State Tax Increment Financing Aid Pursuant to M.S., Section 273.1399, fortax increment financing districts forwhich certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of the tax increment financing district. Pursuant to M.S., Section 273.1399, Subd 6, the City or HRA may choose an option to the LGA -HACA penalty. Urban Village Tax Increment Financing District is exempt from the LGA -HACA reduction if the City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -17 City or HRA elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year, the City or HRA must make a qualifying local contribution to the project of a certain percentage. The local contribution for a redevelopment district is 5 percent. The maxim um'.local contribution for all districts in the City in any year is limited to two percent of the City's ;net tax capacity, after which point the City or HRA must make an additional contribution equal tothe lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for,thai year. r The amount,of the -local contribution must be made out of unrestricted money of the City or HRA, such as the' enelal` fund a roe tax levy, a federal or state rant -in -aid which may be spent for generalg, , t propertym' Y, g Y P g government purposes. The local contribution may not be made, directly or indirectly, with tax increments or,develop'er payments. The local contribution must be used to pay project costs and cannot be used for general,government purposes. The City elects to make the annual local contribution to the project to exempt itself from the LGA- HACA penalty. The City or HRA will pay for costs of the project described in this Plan, in an amount equal to 5 percent of annual tax increment for Urban Village Tax Increment Financing District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or HRA or other unit of government with unrestricted funds. Subsection 2 -29. County Road Costs Pursuant to M.S., Section 469.175, Subd. la, the county board may require the City or HRA to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvementsare not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the City and HRA and consultants, the proposed development outlined in this Plan will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City or HRA within thirty days of receipt of this Plan. Subsection 2 -30. Economic Development and Job Creation To the extent applicable, the City or HRA agrees to comply with M.S., Section 116J.991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in jobs and meet wage level goals in Minnesota within two years of receiving assistance (See Appendix E). Subsection 2 -31. Summary The City of Richfield is establishing Urban Village Tax Increment Financing District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan for Urban Village Tax Increment Financing District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55402 -4100, telephone (612) 697 -8500. City of Richfield Tax Increment Financing Plan for Urban Village Tax Increment Financing District 2 -18 APPENDIX A PROJECT DESCRIPTION Urban Village Tax Increment Financing District is created to facilitateconstructionofintegrateddevelopment that will include: housing; commercial and parking elements. The housing element contains a total of approximately -210 units consisting of approximately 132 rental apartments with underground parking and approximately 7, 8 units of senior assisted living. The commercial element of the development consists of approximately,80,000 square feet of commercial space on three levels. McDonald's will be relocated to the corner. ofLyndale and 67" Street. A 500 to 650 car parking ramp will also serve on -site and general public parking needs. In addition, it has been proposed that a corridor will connect the parking ramp and commercial uses. Transit services are under consideration and an emphasis will be placed on maximizing green'space and creating pedestrian paths consistent with the Richfield Lake area concept plan. APPENDIX A -1 APPENDIX B BOUNDARY MAPS -OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT APPENDIX g_I i z w c3 ao z w LLI z 5 U a HSOWu oCNZZ OCCis:z tuaz tus: 1 === 0 rust rue: tus: Ntst — Kitt tut: till) : E3 o oovotc , eraNnim o Qldd (-- - HIS e 3 tu. W=ssNA a DOC ist 3mJ 3TIMN JU TBM WIG Pl AdIGSTTld IKYALNam INIOSVTU o m 1311bw aULWw iwAkm T-1 EU Nl75i O o OilltlD a'oev. ONMI 000 YON5t 7 ; SVKOW oo°n Nooses OD M S = Ol- p — m COO 3v tMS rust Rut HEI 00 rust oCO a t DoCOO tort 000CO oCOCO CCOO N, OCOC° d oCOCO LoCOO d oC a c tu= ACCa C oC ML. N o oo GdC COCO cre COC 00000D ,BOSWIS a CCOCO a Ali,FST,d CrE31AWOO HDRCW Wima000° N r CO INWEEW advwjD lacevm s3wI NIIrtJmOI O OOL Ne-Am NaLNUN C ° u3rm NMM 3 tl1l8d C C TEE" NoaRBS 1 OC U Inn o F=2 ° D Qco z criN N Cs 0 EP a D 00 7 I 5 y I a Z APPENDIX C LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN URBANNILLAGE TAX INCREMENT FINANCING DISTRICT Paicel,Numbers Address 27- 028 -24 -32 -0125 6645 Harriet Avenue South 27.- 028 -24 -32 -0123 6625 Lyndale Avenue South 27- 028 -24 -32 -0124 27- 028 -24 -32 -0126 27- 028 -24 -32 -0062 27- 028 -24 -32 -0045 27- 028 -24 -32 -0011 27- 028 -24 -32 -0012 27- 028 -24 -32 -0013 27- 028 -24 -32 -0014 27- 028 -24 -32 -0015 27- 028 -24 -32 -0016 27- 028 -24 -32 -0017 27- 028 -24 -32 -0018 27- 028 -24 -32 -0028 27- 028 -24 -32 -0029 27- 028 -24 -32 -0030 27- 028 -24 -32 -0031 27- 028 -24 -32 -0032 27- 028 -24 -32 -0033 27- 028 -24 -32 -0034 407 66`h Street West 6701 Lyndale Avenue South 6709 Lyndale Avenue South 6700 Garfield Avenue South 301 66`h Street West 6614 Pleasant Avenue 6620 Pleasant Avenue 6621 Grand Avenue South 6615 Grand Avenue South 6607 Grand Avenue South 6601 Grand Avenue South 30766 h Street West 6626 Pleasant Avenue 6630 Pleasant Avenue 6640 Pleasant Avenue 6644 Pleasant Avenue 6645 Grand Avenue South 6635 Grand Avenue South 6627 Grand Avenue South APPENDIX C -1 APPENDIX D ESTIMATED CASH FLOW FOR URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT w f y APPENDIX D -1 10mSms Cay d 11kNteM - t.saan Vteape Pape 1 PID BASIC ASSUMPTIONS District New Redevelopment District Inflation Rate 0.0000% Pay As You Go Rate - Tax Exempt 5.50% Fiscal Dip. Contnb bon Ratio 18.6928% Tax Capacity (Extension) Rate 1.350000 EST PID NAME ADDRESS BASE TAX CAPACITY BASE MARKET PROPERTY VALUE TYPE BASE TAX CAPACITY USE 27 -028.24.32.0125 R.SA 664514mrW AVe S. 435,000 3.50% 15,225 Commerical 27.028-24-32 -0123 RSA 6625Lr k"A..s. 4,537,000 3.50% 158,795 Commerical 27 -028. 24.32.0124 RSA 407 Wrel West 2,167,000 3.50% 75,845 Commerical 27. 028.24.32 -0126 RSA 67011ymale Me S. 72,000 1.00% 720 Single Fam, 27 -028.24.32 -0062 R.I.C. 67091yn b" Ave S. 86,000 1.00% 954 Single Fam. 27-028-24 -32 -0045 Sim. 67000an1eU Ave S. 82,000 1.0016 880 Single Fam. 27- 028.24 - 32.0011 J,h 30166th SO Wes 79,000 1.00% 824 Single Fam. 27. 028.24.32.0012 limey 6614 Pleasant Ave 76,000 1.00% 769 Single Fam. 27. 028.24.32.0013 Dawn 6620 Pleasant Ave 84,000 1.00% 917 Single Fam. 27-028.24.32 -0014 E- 6621 alma Ave S. 94,000 1.00% 1,102 Single Fam. 27- 028 - 24.32.0015 M,.. 6615 Grand Ave S. S76,500 1.00% 778 Single Fam. 27. 028 -24 -32 -0018 NkhUem 66x7 Gram Ave S. 96,000 1.001/6 1,139 Single Fam. 27- 028 -24 -32 -0017 zlaa 6601 Qx me S. 130,000 3.50% 4,550 Commerical 27. 028 -24 -32 -0018 AWre 30766th S1 Wee 74,000 1.00% 740 Single Fam. 27. 028 -24.32 -0028 Ockey 6626 Pi-ve A- 5100,000 1.00% 1,213 Single Fam. 27- 028 -24- 32.0029 v*9. 6630 PleasrN AV. 106,000 1.00% 1,324 Single Fam. 27. 028.24 -32 -0030 Pklmn 6640 P16-0 Av. 560,000 1.00% 843 Single Fam. 27-028.24.32 -0031 Mamn 6644 Pleasant Ave 95,000 1.00% 1,120 Single Fam. 27- 028 -24 -32 -0032 Su harry 6645 Q AVe S. 117,000 1.00% 1,527 Single Fam. 27.028. 24.32.0033 C.- 6MS Crud Av. S. 92,000 1.00% 1,065 Single Fam. 27- 028 -24 -32 -0034 Tuansle 6627 Gram AV. S. 101,000 1.00% 1,231 Single Fam. Tolal 8,779,500 271,556 Phase I Development Typ, Sq. Ft/ units Taxes Per 5 . FUUnit PROJECT VALUE INFORMATION Market Tax Capacity Valve Total Mi- 5 . Ft /Unit Taxes Fla. Dis, Total Tax Capacity Tax Rate Market Valve Pa ad Existing 271,556 0 N/A N/A 1 Ramp 600 0.00 0 0 0 N/A 2001 2 Rental H-sing 78 2,446.88 572,500.00 190,856 141,375 141,375 2.50% 5,655,000 2002 2 Commerical 74,000 4.00 84.66 296,000 178,274 219,259 3.50% 6,264,550 2002 2 Commerical 4,000 4.00 84.66 16,000 9,636 11,852 3.50% 338,624 2001 3 Rental Hosing 132 52,446.88 72,500.00 322,988 239,250 239,250 2.50% 9,570,000 2002 T OTAL 825,844 640,091 611,736 21,828,175 111100 Prepare0oy Pualkx"nc.. Pl.as.ravlowallassmplk . U-3.WK4 toNSNa CRY ,$ "iam - v tnn V" Pape 2 BUT / FOR ANALYSIS Curran Mahal value . Ed. 8,779, 500 TAX INCREMENT CASH FLOW 21,828,175 Omer- 13,048,675 Beprlrinp Period Amual Project Captured Semi- ArvMal AArirVState Audi Trust Selri•Arinual Semi - Annual Local Encinp Period Base Tax Tax Tax Gross Tax Payment Fund Net Tax Present Value Match Yrs. Mih. Yr. Capacity Capacity Capacity Increment 10.25: 15.00: Increment 5.00% Ym. Mth. Yr. 0.0 08- 011998 271,556 271,556 0 0 0 0 0 0 0 0.0 02- 011999 0.0 02 -011999 271,556 271,556 0 0 0 0 0 0 0 0.0 08. 011999 0.0 08- 011999 271,556 271,556 0 O 0 0 0 0 0 0.0 02- 012000 0.0 02- 012000 271,556 271,556 0 0 0 0 0 0 0 0.0 08- 012000 0.0 08- 012000 271,556 271,556 0 0 0 0 0 0 0 0.0 02 -01 2001 0.0 02- 012001 271,556 281,192 9,636 6,505 667) 976) 4,862 4,132 325 0.0 08- 012001 0.0 08 -01 2001 271,556 281,192 9,636 6,505 667) 976) 4,862 8.153 325 0.0 02 -01 2002 0.0 02- 012002 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 239,050 19,188 0.5 08- 012002 0.5 08 -012002 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 463,766 19,188 1.0 02- 012003 1.0 02 -012003 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 682,469 19,188 1.5 08 -012003 1.5 08- 012003 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 895.318 19,188 2.0 02- 012004 2.0 02 -012004 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 1,102,471 19,188 2.5 08- 012004 2.5 08- 012004 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 1,304,079 19,188 3.0 02- 012005 3.0 02- 012005 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 1,500,291 19,188 3.5 08-012005 3.5 08- 012005 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 1,691,252 19,188 4.0 02- 012006 4.0 02. 012006 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 1,877,103 19,188 4.5 08. 012006 4.5 08- 012006 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 2,057,979 19,188 5.0 02- 012007 5.0 02- 012007 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 2,234,014 19,188 5.5 08- 012007 5.5 08- 012007 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 2,405,337 19,188 6.0 02- 012008 6.0 02- 012008 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 2,572,076 19,188 6.5 08 -012008 6.5 08 -01 2008 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 2,734,352 19,188 7.0 02.01 2009 7.0 02- 012009 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 2,892,284 19,188 7.5 08- 012009 7.5 08- 012009 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 3,045,990 19,188 8.0 02- 012010 8.0 02- 012010 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 3,195,582 19,188 8.5 08 -01 2010 8.5 08- 012010 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 3,341,170 19,188 9.0 02 -01 2011 9.0 02- 012011 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 3,482,862 19,188 9.5 08- 012011 9.5 08- 012011 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 3,620,761 19,168 10.0 02 -01 2012 10.0 02 -01 2012 271,556 840.091 568,535 383,761 39,336) 57,564) 286,861 3,754,970 19,188 10.5 08 -01 2012 10.5 08.01 2012 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 3,885,587 19,188 11.0 02 -01 2013 11.0 02 -01 2013 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,012,708 19,188 11.5 08 -01 2013 11.5 08- 012013 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,136,427 19,188 12.0 02 -01 2014 12.0 02 -01 2014 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,256,834 19,188 12.5 08.01 2014 12.5 08 -01 2014 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,374,019 19,188 13.0 02 -01 2015 13.0 02 -01 2015 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,488,068 19,188 13.5 08 -01 2015 13.5 08- 012015 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,599,064 19,188 14.0 02.01 2016 14.0 02. 012016 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,707,089 19,188 14.5 08 -01 2016 14.5 08 -01 2016 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,812,224 19,188 15.0 02 -01 2017 15.0 02 -01 2017 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 4,914,544 19,188 15.5 08 -01 2017 15.5 08- 012017 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,014,126 19,188 16.0 02 -01 2018 16.0 02- 012018 271,556 840,091 568,535 383,761 39,336) 57,564) 286,851 5,111,043 19,188 16.5 08 -01 2018 16.5 08 -01 2018 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,205,366 19,188 17.0 02 -01 2019 17.0 02- 012019 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,297,164 19,188 17.5 08- 012019 17.5 08- 012019 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,386,506 19,188 18.0 02 -01 2020 18.0 02- 012020 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,473,456 19,188 18.5 08 -01 2020 18.5 08 -01 2020 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,558,079 19,188 19.0 02 -01 2021 19.0 02- 012021 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,640,438 19,188 19.5 08 -01 2021 19.5 08 -01 2021 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,720,592 19,188 20.0 02 -01 2022 20.0 02 -01 2022 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,798,601 19,188 20.5 08.01 2022 20.5 08 -01 2022 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,874,522 19,188 21.0 02 -01 2023 21.0 02 -01 2023 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 5,948,411 19,188 21.5 08 -01 2023 21.5 08 -01 2023 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 6,020,323 19,188 22.0 02.01 2024 22.0 02 -01 2024 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 6,090,310 19,188 22.5 08 -01 2024 22.5 08 -01 2024 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 6,158,423 19,188 23.0 02 -01 2025 23.0 02 -01 2025 271,556 40,091 568,535 383,761 39,336) 57,564) 286,861 6,224,714 19,188 23.5 08 -01 2025 23.5 08 -01 2025 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 6,289,231 19,188 24.0 02 -01 2026 24.0 02 -01 2026 271,556 840,091 568,535 383,761 39,336) 57,564) 286,861 6,352,021 19,188 24.5 08 -01 2026 24.5 08 -01 2026 271,556 840,091 568,535 383,761 39,336 57,564 286,861 6,413,130 19,188 25.0 02 -01 2027 TOTALS 19,201,065 1,968,109 2,880,160 14,352196 960,053 PRESENT VALUE 8,579,438 879,392 1,286,916 6,413,130 6,413,130 BUT / FOR ANALYSIS Curran Mahal value . Ed. 8,779, 500 Now Markel VWue . Ed. 21,828,175 Omer- 13,048,675 Presoro'Mue tl Tax Inc-A 6,579,436 Dalwsrx:e 4,469,236 Value Mary bOC WmkN T F is Less Thin: 4,469,236 Rlloa Prepwed by Pualltq sn.. Please review M a MVIrm. lAaalr3,WK4 MINNESOTA MINNESOTA DEPA , RTMENT APPENDIX E BUSINESS ASSISTANCE FORM OF TRADE AND ECONOMIC DEVELOPMENT) APPENDIX E-I r\, tAN ESOT9 Trade & Econoimc Development February 27, 1998 To all Minnesota state and local government agencies: As you know, state and local governments are increasingly responding to the need to be more accountable with taxpayer dollars. This is especially true in the areas of economic development and business assistance. The legislatively - created Corporate Subsidy Reform Commission reviewed many of Minnesota's business subsidies and concluded that the reporting mechanisms should be improved to enhance accountability. The Department of Trade and Economic Development (DIED) created the Minnesota Business Assistance Form in 1995 to assist state and local agencies in meeting the accountability measures contained in M.S. 116J.991. The form has been modified this year to respond to the Commission's recommendations. M.S. 1161991 requires a business receiving state or local government assistance to create a net increase in jobs in Minnesota within two years of receiving assistance. The law also requires the business to meet wage level and job creation goals established by the funding agency. Until the wage and job goals are achieved, each government agency that works with these businesses is mandated to annually report the goals and any progress toward these goals to DTED. If the goals are not achieved, the business must repay the assistance to the governmental agency at the terms negotiated in the assistance agreement. Business assistance" refers to any business grant or loan using state or local dollars in excess of 25,000 or any new business activity within a tax increment district. While not defined in statute, our interpretation is that this would include grants, loans, interest subsidies, tax increment financing (TIF) or any other public monies directly benefitting a business and given for economic development or job growth purposes. Please use the enclosed Minnesota Business Assistance Form for each business assistance agreement signed between July 1, 1995 and December 31, 1997. All financial assistance agreements signed during this period should be reported by April 15, 1998 regardless when the assistance was awarded, unless a form has been submitted indicating that the business has met the established wage and job creation goals. Moreover, each year you will receive a new form from DTED to be completed and returned. Each year's form should be submitted until all wage and job goals have been achieved. Please mail or fax your completed form(s) to DTED before April 15, 1998. The form does not need to be submitte if assistance has not been provided to a business. t Sincerely, Jay Nova Commissioner 00 Metro Square. 1 ! 1 ,-th I'lace fast, Saint Paul, %linnesota 15) 101 -_' I46 USA ti 12-297- 1 _91 - 800-ti )-• is -)8 - Fax h 12-196-41-712) - I'll ,'I I)I) 800.627- ' ;i "1 AIed.sIaw.ntn.us r1NESOZ. Trade & - Economic Development 1998 Minnesota Business Assistance Form* Please return by April 15, 1998) Please type or print In dark ink. I. Funding government agency name 2. Contact name 3. Agency street address 4. City 5. Zip code 6. Phone number (area code) 8. Type of government agency City _County _Regional _State Other (Please indicate) 7. Fax number (area code) 9. Name of business receiving assistance 10. Industry of recipient (SIC code) 11. Type of assistance (e.g. loan, TIF, grant, infrastructure, etc.) 12. Name of T1F district (if applicable) 13. Date of business assistance agreement 14. Date assistance first provided 15. Date project (building/ machinery/etc.) was placed in service 16. Dollar value of business assistance For assistance agreements signed between July 1, 1995 and December 31, 1997, complete boxes 17 through 20 or boxes 21 through 24. For all agreements signed during 1998 and future years, the information in boxes 21 through 24 will be required. 17. Job creation goals for business receiving assistance 18. Average hourly wage level goals for business receiving assistance 19. Actual jobs created since business received assistance 20. Actual average hourly wage paid to employees hired since business received assistance Goals of business receiving assistance: (Please indicate Actual performance since project placed in service: (Please number of employees at each wage level and indicate the indicate number of employees at each wage level and indicate corresponding benefit level.) the corresponding benefit level.) 21. Job Creation Hourly Wage 22. Hourly Value 23. Job Creation Hourly Wage 24. Hourly Value Level of Voluntary Level of Voluntary Full -time Part-time (excl. benefits) Benefits ($) Full -time Part -time (excl. benefits) Benefits ($) less than $7.00 less than $7.00 7.00 to $7.99 7.00 to $7.99 8.00 to $9.99 8.00 to $9.99 10.00 to $11.99 10.00 to $11.99 12.00 and higher 12.00 and higher If necessary, please attach additional documents. If necessary, please attach additional documents. 25. Last date actual wage and job creation levels documented 26. Date this Minnesota Business Assistance Form completed 27. Have all wage and job goals been achieved? U Yes -do not submit future forms for this project. No - please submit this form in 1999. This form replaces all previous forms. Please complete one form for each business assistance agreement your agency signed between July 1, 1995 and December 31, 1997 which provided $25,000 or more in public funds. A form should be submitted annually for each assistance agreement until a submitted form indicates that all wage and job creation goals have been achieved. Do not submit this form if your agency has not agreed to provide assistance to a business since July 1, 1995. over) ANESop Q Trade & Economic Development Please send completed form annually by April 15 to: Minnesota Business Assistance Form — AEO Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 East 7th Place St. Paul, Minnesota 55101 or fax report to: 612) 215 -3841 For information, call: 612) 297 -2335 or 1-800-657-3858 Minnesota Statutes 116J.991: A business that receives state or local government assistance for economic development or job growth purposes must create a net increase in jobs in Minnesota within two years of receiving the assistance. The government agency providing the assistance must establish wage level and job creation goals to be met by the business receiving the assistance. A business that fails to meet the goals must repay the assistance to the government agency. Each government agency must report the wage and job goals and the results for each project in achieving those goals to the department of trade and economic development. The department shall compile and publish the results of the reports for the previous calendar year by June 1 of each year. The reports of the agencies to the department and the compilation report of the department shall be made available to the public. For the purposes of this section, "assistance" means a grant or loan in excess of $25,000, or tax increment financing. APPENDIX F REDEVELOPMENT QUALIFICATIONS FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT The following is aLdraft of the redevelopment qualifications. Final redevelopment qualification frnding will be included at the public hearing. APPENDIX F -1 h NN M o v A h n cu 0 F- O ti O toa 0 cD a a 0 0 C 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0 0 0 0 0 0 h c c c c c c c c c c c c c c c oh do F- a a> c x a x m ac ax x c x x c c c y x x x x x x c x c c c xScxxxSW— W W W W W W W W— W W - -- W Z 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o o o o o o o 0 0 0 0 o N N OO)— o coOQ)(AMC'MMooN(oo LLLL N CO --T N It M M1'T M M M N CM M O O M N c O U 9 Q> r M r r r r- — .- — — — — M O Cn O N r C p F- 3 O C' 0 0 0 o 0 0 0 0 o 0 1.-0 o 1.-* - 0- 0 0( 0 0 0rHUNONhOco O h O) 0 0 ooh co •-' O O h OC N LL N r- N N N M M 2 c w y E O UsV o M o N N N h O M 0 O Cl 0 0 0 0 0 0 M O N f0 4) b. 3 N 7 M O M Co co Co h M Co O O O O O o o v M O o' 0 CD CD O O O N CD O O O h h o O N M A O O S Q d c) 0 CD 0 0 0 0 0 h M CD CD O O h h O Nr (o O r- — N O h r a C W U c 3 O H Z .R e - 0 -R e OR0000000000000000000 0 0 S O R o O h O (D (D (0 00 r 00 M O M CO N CO O— CO o N— N M M M M CN - N o M O O Q 0 Z d 0 R 41 D N O N O O LO 00 co O co LO It O M 0 0 0 M N O t0 p M O h N M 0 O h M N h h h (D h 0 00 d co O p O Q N CD 00 (D It O O (D 00 h O N h CD N O N N O N N N - O N N (M N O O M O Z c N N 4) 04 O Co r t C V, U d aC a, 4) v c t=.`.N a w H L. N Q) O CA Cn N N N h O M o 0 O o o cM O 0 o M Nr O c M o M (D (D (D h M (o O O O O O CV) O o It M O P rj O t y D (0 (0 O C-) O N CD r O O O h h CD O O N CO O 0 0 h Q) O) M h h O (o O00000MCo (D O F- C 3N c C= t t 0 a c O m t c c IL3 a as d S c 9 W c c W e 4) 4) A D E L N M 7 O Co h co 0) O r- N M ct O CD h CO CA O N NaC4141 0 0 0 0 0 0 0 0 0 a-- r' r r - O O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 a! 4! O E C c. a) 0999999900099000999999 0 0 0 Q.*. y V% c c 0 0 0 0 o o o o o 0 0 o 0 o 0 o 0 0 0 0 0 o d 00000C:lC 0 C 0C 0C 00000 fL C O M 6 1. 0O0O000LO0O0 O0 0 0 OO(nO(nto V a O VF- V a0rnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrn h NN M o v A h n cu 0 F- O ti O toa 0 cD a a APPENDIX G QT TTMOR SUPPORTING DOCUMENTATION wing. APPENDIX G_1