11-1100r HRA RESOLUTION NO. 1100
RESOLUTION APPROVING A FUNDING AGREEMENT
AND A BUSINESS SUBSIDY AGREEMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (the "Authority") 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 Authority 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 certain conditions are met; and
WHEREAS, at its meeting on July 25, 2011, the Authority approved a spending
plan for the TIF Districts in accordance with the Temporary TIF Authority Act (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, on August 9, 2011, the City Council of the City held a public hearing
regarding the Spending Plan and approved the Spending Plan; and
WHEREAS, the assistance authorized under the Spending Plan expressly
includes, but is not limited to, assistance to Lyndale Gardens, LLC, a Minnesota limited
liability company (the "Developer") 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 (the "Project"); and
WHEREAS, the Board of the Authority has been presented with a Funding
Agreement, between the Authority and the Developer (the "Funding Agreement"),
pursuant to which the Authority will provide $650,000 of the funds available under the
Spending Plan to the Developer to complete the Project under certain terms and
conditions; and
WHEREAS, the Authority Board has on this date held a public hearing regarding
the business subsidy provided to the Developer pursuant to the Funding Agreement,
pursuant to Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy
Act"); and
WHEREAS, the Board of the Authority has been presented with a Business
Subsidy Agreement, between the Authority and the Developer (the "Business Subsidy
Agreement"), which sets forth the terms and conditions of the business subsidy
provided to the Developer pursuant to the Funding Agreement; and
WHEREAS, the Authority has reviewed the Funding Agreement and the Business
Subsidy Agreement and finds that the execution of the same and the Authority's
performance of its obligations thereunder are in the best interest of the City and its
residents; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The Funding Agreement presented to the Authority and on file with the
Community Development Director is hereby in all respects approved, subject to
modifications that do not alter the substance of the transaction and that are approved by
the Chairperson and Executive Director; provided that execution of such document by
such officials shall be conclusive evidence of approval.
2. The Business Subsidy Agreement presented to the Authority and on file with
the Community Development Director is hereby in all respects approved, subject to
modifications that do not alter the substance of the transaction and that are approved by
the Chairperson and Executive Director; provided that execution of such document by
such officials shall be conclusive evidence of approval.
3. The Chairperson and Executive Director are hereby authorized to execute
the Funding Agreement and the Business Subsidy Agreement on behalf of the Authority
and to carry out on behalf of the Authority the Authority's obligations thereunder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 15th day of August, 2011.
a.4m4-e— N.)41
Su a M. Sandahl, Chair
ATTEST:
i nJ Helmber g er, Secretary