11-1098r HRA RESOLUTION NO. 1098
RESOLUTION APPROVING A SPENDING PLAN FOR CERTAIN
TAX INCREMENT FINANCING DISTRICTS LOCATED WITHIN
THE RICHFIELD REDEVELOPMENT PROJECT AREA
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield (the
"HRA") and the City of Richfield (the "City") have previously established the Interchange Tax
Increment Financing District and the Lyndale Gateway Tax Increment Financing District
(collectively, the "TIF Districts") within the Richfield Redevelopment Project Area and adopted
tax increment financing plans therefor, pursuant to Minnesota Statutes, Sections 469.001 to
469.047, as amended, and Sections 469.174 to 469.1799, as amended; and
WHEREAS, Minnesota Statutes, Section 469.176, Subd. 4m, (the "Temporary TIF
Authority Act") authorizes the HRA to spend available tax increment from any existing tax
increment financing district, notwithstanding any other law to the contrary, to provide
improvements, loans, interest rate subsidies, or assistance in any form to private development
consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the
following conditions exist:
(1) Such assistance will create or retain jobs in the State of Minnesota, including
construction jobs;
(2) Construction commences before (a) July 1, 2011, for low- and moderate-income
housing developments; (b) January 1, 2012, for market rate housing developments; and (c) July
1, 2012, for all other private developments;
(3) The construction would not have commenced before that date without the
assistance;
(4) Tax increments under the spending plan are spent by December 31, 2012; and
(5) The City Council of the City approves a written spending plan after conducting a
duly noticed public hearing that specifically authorizes the HRA to take such actions; and
WHEREAS, the HRA proposes to adopt a spending plan for the TIF Districts in
accordance with the Temporary TIF Authority Act in substantially the form submitted to the
Board of the HRA (the "Spending Plan") to utilize existing tax increment revenues from the TIF
Districts in order to stimulate construction or rehabilitation of private development in a way that
will also create or retain jobs; and
WHEREAS, the assistance authorized under the Spending Plan expressly includes, but
is not limited to, assistance to The Cornerstone Group, Inc. (the "Developer"), a Minnesota
corporation to finance the costs of redeveloping the Lyndale Garden Center, located at 6400
Lyndale Avenue South in the City, which costs shall include the acquisition of the property, the
remediation of environmental contaminants and the substantial rehabilitation of the existing
building so that it is suitable for commercial use; and
WHEREAS, the HRA Board has on this date held a public hearing regarding the business
subsidy provided under the Spending Plan, pursuant to Minnesota Statutes, Sections 116J.993 to
1161995 (the "Business Subsidy Act"); and
WHEREAS, on August 9, 2011, the City Council of the City will hold a public hearing
regarding the Spending Plan, for which notice was published in a newspaper of general
circulation in the City at least once, not less than ten days nor more than 30 days prior to the
hearing, and at which hearing all persons will be given the opportunity to be heard; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota as follows:
1. The Spending Plan is hereby approved in substantially the form on file in City Hall.
2. The HRA makes all the findings set forth in the Spending Plan, which are
incorporated herein by reference.
3. Following the public hearing and approval of the Spending Plan by the City Council
of the City, HRA staff and consultants are hereby authorized to take actions necessary to carry
out the terms of the Spending Plan.
4. The HRA hereby approves a business subsidy of up to $650,000 to the
Developer as described in the Spending Plan, contingent on the HRA and Developer entering
into an agreement regarding the terms and conditions of such business subsidy which is
mutually agreeable to both parties.
5. At its meeting on August 15, 2011, the HRA will consider approving an
agreement with the Developer providing for assistance to the Developer under the Spending
Plan.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 25th day of July, 2011.
.� � _.
• anne M. Sandahl, Chair
ATTEST:
-1'b® fake-a t i1
J an Helmberger, S?L ecret1