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12/12/1988 CONF MTG - 5044-��,�-� � � CtTY OE fRlDLEY �. 2. 3. 4. 5. �:� 7. � ? CITY Oz' FRIL�T_.�EY CONFERENCE MEETING DECEMBER 12, 1988 7:00 P.M. Return of School Districts Referendum Levy's Light Rail Transit Alternatives Update Regarding the Senior Citizen Survey 13th Paycheck Consideration of Pending l�ssessments and Deposit of Funds Advance Approval of Claims Boarman & Associates to Discuss Council Bench 1989 Capital Improvements Planr.ing Process 9. Other � �� + •�- ;,• ... :� l�BIrtORANDIIM �� W. � �� • � � CITY � � FliCM: �': nQi�: .�:► -�. . • �- ,. ' � «- . �-,:. • ; '�:�/' Ii i� •1• : �: �• � •i-i• :�'�:� i� 1 - • �ffiER 9, 1988 ferend�un levies�� , infornati� � the return of I have been wnr �O�Ol districts that reside in the City of F�idley. based on his review of the i'tua ion I ha e� �,��' aur bond vouncil, ar�d r'eocnrnner�dation of the bor�d vau�cil was to �� the financial in�act. Zhe of Fridley ar�d each particular sc��iool district to identg�which lev� ar�d which districts w�ere applicable to the State Statute. �� tatute is involved, ��t Pr� �a� � aPPlication of the determine its ap�licability tc� the refuixi iss� �ch levY bY district to Attached yau will firid a sinnna�, of the d411ars that are as�sociated with the PaY�nt clause in each one of the sc�ool districts agreements. An ite�m that will be difficuZt for the sc��l ��.1� �� t � increme.nt districts, a000�ing to bo�� oouncil ar+e not Pre-1979 tax �ega�ing these refur�ds o� 1 ' aPPlic�ble to the Statute 1988 modificatioa� to the tax � refer+ex�dtm�s. Zhe langua9e that t�ras u�sed in the 1979 districts arrl ��nt act did not specifically include the pre- authori . our feelin9 is, � is no�t P�per statuto tY to incltrle these in the reftu�d pror�ess. Attached letter I es reoeived f�n Mr. O'Meara that reviews this situati ardWStates his apinion in this ��1 �� tter. I an► sure that this particular issue will be up�etting c�ertified before May #14 1988� falls �„�� tion that ariy district It was staff's reo�er�ation, at this poirit, to o�- with�bor�de Statute. apinion of the Statute ar�d reoa�e„r� to the HI2A to omit the c�ncil s fi-nm the calculations. C�enter CitY �nt Zhe attached a�� ,,,�re ci�velqaed in acaoo�aryoe �tutes, ar�d as svch, are betw,eet� the �"n� M��so�ta State � a9rae�nent defines �001 �'�i� �� City of Fridley. cabli tions � � different parties to the aclr'e�ent ar�d also the 9� behalf of the I�2A. The agrae�t defines for earh partiwlar school district which tax irx�,ement districts are located within its boundaries ar�d also defines the firk-�ncial cabligati� that exists in each district. � Zhe last sec�tio�n d�scribes the prooess in which the gaYments to the sc�iool districts are derived. Each particular tax in�t district within the City is review�ed for its applicability to the law. The atta tO Y�, reviews by �ol district each tax � I have provicied that pextain to it. It is staff's �t district arid the levies °Qv'ii� at�d the I�2A's de.sire �atioa�s to �r t�i.th borxi cau�cu � s the issue of re-1979 � that the Certter City area be left aut i�ecause of district as P distric�ts ar�d for the amou�,s to be paid to earh sc:twol six�wn oai the attach¢netYt. Atta� ( i , �p �@ F OG � .� 8 i i 1 1� � � ' 1 I I I O 1 I .� � � I � � i � i w .�+ � � ��' .� � � I I � � i �I I 7 � 1 I I I i 1 1 •rl I � I I A � I � AI � �+ i � � � �, � � � N 1 �i 1 n ' � I i i r i e� I � I � I 1 1 I 1 1 � � � � i � e � i � i iA O i �O i t� N � 0� I � I � I U'1 I K1 I �O W O N �o ♦ N ch �O � � � �� M � ri � i � i �� i �� ii � � � � i �o �o il � i I rl 1 N t� I Q 1 � � I � I \� I � 1 � � I I N O� � n � O� I � ; �p I � I � i � � � 00 � o� i .� i ri N 1� i� � N �p P'� I .-1 1 N A[� I C� I !� I+f � � N i � � t � I I 1 � � � �0�� .� n o r� c� o� � a � rl �i U p7 �� Q �w �� N��D i! i! :! � � Z � i �� i �� i � � Ai a'�o a� �� 1 \N � � A � m 1�'Q7 10 N M I � ' O� I O� � � I t 1 � � � � 800N0 � e'�� i OSa�S ' N' b � 00�00 I.f 1 000�0�0 1 O� 1 e�f I �-1 �-1 1 fV 1 �O 1 M 1�O I rn o i e+� i i� �n � v� � n i � N 1 M I �� I N I N 1 1 1 I 1 I N N N N 1i,\NNN \�Y'1�11�A zz zz�� NU'f.il+0 MC7Mt�f O� O� O .� v�Orup� a r b O � rl � � � � � �� UU � � � � � �� .-IrIN�� M �t it iR i� � � Z � � i �� i�� i u� � � �c N � � �� 1 N N � a A N�.-It�O f�1 fh M l'7 C�TO.i o� o rr �pc�i an�DO ♦ ri � � � � � �� UU�� m � �� .-1 .i N � m • � iY it � � � � � on � r � �p� N O� �o � s � � Q � °� 3�f 1 • 11 I � 11 1 �O II I N ii i ii � u i u 8 I U1 11 O 1 e-1 11 1 N I I I rl II 1 ~ 1� � �� gg$g i$ i v�i ii 0000 1 O 1 .-1 11 I I N II I 1 N II I 1 II M � � � � zzzz N �D �A O� � LL7 � .-1 lh.�0 o �o v a� �ff�MN � � rl � �p E PqAUCM9 � � � � .a ��a� eh cn u� n �titili .� rl � � T. Z �� .� � � �o � � F N N � .�, ,� � � � � � � a� a c � � % .., � m A �u N .� • � � � w� �0 � � � � E � m � � � � � � � V] � M � � F � � .,, � a �� a n a� � � o 4 F� -•�i � ��+i � � �a Q O � � � � �! ''i U O �� Q W �� s � � 0 � � � ° � ,, � � � rl 1� � ri �� W .i 4 �m i � � � m �7 � � .. � .N.. � 4 T.A�ti OFFICES BKIGGS A�D MO1�GA� PEOFESSIONAL ASSOCIATION L800 FIEST NATIONAI. BANH BiIILDING SAINT PAIIL, MIIQNESOTA 66101 TELEPHONE �612) 261-1216 TELECOPIEE �919; Q22 - 40'71 INCLUDIN6 1'HE FOBMEE FIHM OF LE� ITT, PALMEB, BOWE2v, EOTMAN & SHABE December 8, 1988 DELIVERY VIA MESSENGER Rick Pribyl Finance Director City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: First Draft of Tax Increment/School Referendum Levy Agreements Between the City of Fridley and Independent School District Nos. 11, 13, 14, and 16, Respectively Dear Rick: This letter covers the first drafts of the above-referenced agreements. Determining what this new 1988 law (Minnesota Statutes, Section 469.177, Subdivision 10) on the subject requires or even allows is �not a simple task, especially where you have a number of districts, bond issues, and separate referendum levies. In my experience so far in this area, school districts have understandably assumed that the law simply entitles. them to receive the tax increment attributable to the their referendum levies. That is not the case. To do a proper analysis, it is necessary to take each tax increment district, de�ermine whether or not there are bonds outstanding against that district and when they were issued, and then track through the statute for each of the different referendum levies involved. It is entirely possible, in fact it is often the case, that one levy is eligible to be paid against a district and a different levy will not be. A point that is often missed is that this law applies only to school referendum levies which were approved after the tax P270 M\ WORLD TEADE CEtiTEB 2P00 FIPSi HAiIO2�AL BANH BL:ILDIA'G 9400 IDS CEN7'EE SAINT PALZ, MI27\ESOI'A 86101 SAIN? PAIII„ MINNESpTA 6!SIOI MINNEAPOLIS, MINNESOTA 65402 1918) 2B1-1216 161P1 QB1-1215 191E1 338-0691 __ .._ .. ... _. . . BRIGGS AivD MORGAN Rick Pribyl Page Two December 8, 1988 increment financing district was certified. That provision alone excludes from consideration a number of the referendum levies we are dealing with, as reflected in the enclosed agreements. Even if you pass that initial hurdle, you then have to track through the Subdivision to find out which of the three scenarios fits (and it is possible that none of them applies, leading to further exclusions). I have found that the only way to analyze these scenarios is to prepare a scorecard which lists the tax increment districts, their dates of certification, the dates of approval of the various referendum levies, and the dates of issuance of the bonds. You might want to make some copies of the Exhibit A to these agreements and use that as a basis for checking whether you agree with my conclusions. I suspect that it may take the interested parties some time to convince themselves that these conclusions are correct, especially if they had more expansive expectations. There is one other area of subtlety here that involves the Fridley School District and only your TIF District No. 1. That tax increment district is what we call a pre-1979 tax increment district, meaning that it was certified prior to August 1, 1979, which is the original effective date of the Tax Increment Financing Act. That tax increment district was not created or certified pursuant to the Tax Increment Financing Act but pursuant to old, no longer effective, provisions of the HRA Statute. Unless specific actions are taken, these pre-1979 tax increment districts are referred to as "existing projects" under the Tax Increment Act and they are not generally subject to the provisions of the Tax Increment Act, including this new school referendum levy Subdivision. The provision of the Tax Increment Acts which governs these existing projects is Section 469.179 and it says very explicitly the Tax Increment Act does not apply to those pre-1979 tax increment districts except as expressly provided in the Tax Increment Act, unless an authority elects to proceed with the district under the Tax Increment Act or, and this is a new provision in 1988, if the redevelopment activity is expanded after May l, 1988, beyond the scope of activity set forth in the redevelopment plan. I am assuming, and the agreement for the Fridley School District 4 BBIGGS dxD MOBGAN Rick Pribyl Page Three December 8, 1988 reflects that assumption that you have not brought TIF District No. 1 generally under the Tax Increment Act. As you read this Subdivision 10 you will see by its terms that it applies to all tax increment financing districts "for which certification was requested before May 1, 1988," and you may assume from that language that your TIF District No. 1(which was certified on May 11, 1979) was meant to be included. In our opinion, that is not correct; that is not an "express" provision which subjects pre-1979 tax increment districts to this new Subdivision 10. Normally, and a case of this occurred in the 1988 amendments to the Tax Increment Act as well, when the Legislature wants to make certain that a provision of the Tax Increment Act applies to pre-1979 districts, it will expressly say something like "whether or not certified before or after August l, 1979." We interpret the date in Subdivision 10 to simply be a demarcation between pre- and post-May 1, 1988, tax increment districts which are otherwise subject to the Tax Increment Act. Therefore, unless you have brought TIF District No. 1 within the Tax Increment Financing Act (and this would require the preparation of a financing plan now), it is simply not subject to the provisions of this Subdivision or the payment to any school district of referendum levies. In preparing the enclosed agreements, I have followed the information and direction you have given me in that you want to present to the HRA and to the City Council agreements which allow for the payment of tax increment to the school districts to the extent permitted by this law. In some cases payment of increment from certain tax increment districts is mandatory. The City could, if it chose, agree to give less than all of the maximum allowable where the particular levy increment is subject to agreement between the City and the School District under clause (3) of the Subdivision. I have in addition added a necessary caveat that we have a number of bond issues outstanding and have made a number of promises respecting the use of various tax increments to pay the debt service on them. These promises must be kept and to the extent that abiding by the terms of any of these agreements would cause us not to be able.to keep those promises, that portion of the money otherwise payable to the school district would � BRIGGS exn MORGAN Rick Pribyl Page Four December 8, 1988 be made to the bondholders instead. This has immediate application for TIF District No. 6(Lake Pointe), given the difficulties encountered on that project, and while the proposed agreement with the applicable school district (ISD No. 13), Columbia Heights, does generally provide for payment of the increment attributable to its 1986 referendum levy, the provision goes on to say that from a practical standpoint we don't expect any increment to be available to pay to the school district in the foreseeable future, especially after we first honor the pledges we have made to use such increment first to pay the Limited Revenue Note and the 1985 and 1986 G.O. Bonds, respectively. Please to you in otherwise. JPO : cf Enclosures let me know if I can be of any further assistance this regard, by way of clarification, amendment, or Yo s y truly, /�,.`' ___---- James P. O'Meara � h R }; AGREEMENT This Agreement is dated as of , 198 , is by and between the City of Fridley, Minnesota, and Independent School District No. 11, and provides as follows: l. Definitions. As used in this Agreement, the following terms have the following meanings, respectively: "City" means the City of Fridley, Minnesota. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. � "School District" means the Anoka School District, Independent School District No. 11. "Project" means Housing and Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. "1985 Revenue Bonds" me�ns the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August 1, 1986. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. j Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 8 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "Subdivision" means Laws of Minnesota 1988, Chapter 719, Article 12, Section 24 (a copy of which is attached hereto as Exhibit B), to be codified in the Tax Increment Act as Minnesota Statutes, Section 469.177, Subdivision 10. 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) A portion of TIF District No. 3 is located within the boundaries of the School District. (c) None of the property within TIF District Nos. 1, 2, 4, 5, 6, 7, and 8 is located within the boundaries of the School District . (d) It is the purpose of this Agreement to provide for payment of certain tax increments to the School District pursuant to and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and agreements heretofore made respecting the -2- application of tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February l, 1999. (cy The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 from tax increments Nos. 1 through 6, principal maturity 1, 2000. (e) The 1986 f rom tax increments Nos. 1 through 6, principal maturity l, 2000. G.O. Bonds are payable derived from TIF District and the final scheduled of those Bonds is February G.O. Bonds are payable derived from TIF District and the final scheduled of those Bonds is February (f) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds were outstanding on May 1, 1988, and are outstanding on the date of this Agreement. 4. Representations of the School District. (a) On October 5, 1982, the electorate of the School District approved a continous -3- � 6.0 mill levy payable 1983 is hereinafter Levy". first effective for the 1982 property taxes. This levy referred to as the "1983 tb) On October 6, 1987, the electorate of the School District approved a 6.0 mill continuous levy first effective for the 1987 payable 1988 property taxes. This levy is hereinafter collectively referred to as the "1987 Levy". 5. Pavment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, beginning with such tax increments relating to the 1987 payable 1988 property taxes, as follows: TIF District No. 3. Since the 1987 Levy was approved after the most recent issue of bonds to which increment from TIF District No. 3 is pledged, pursuant to clause (3? of the Subdivision, the tax increment from TIF District No. 3 which is attributable to the 1987 Levy shall be paid to the School District. Since the 1982 Levy was approved prior to the most recent issue of bonds to which increment from TIF District No. 3 is pledged, the Subdivision does not apply to the 1982 Levy with respect to this District. 6. Further Agreements. Nothing in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. -4- r IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. � CITY OF FRIDLEY, MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 11 School Board Chair Superintendent -5- EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project No. 1 of the Fridley HRA TIF District Name 1 Center City 2 Moore Lake 3 North Area 4 Johnson Printing/ Skywood Mall 5 Paschke Lake Pointe Winf ield Shorewood Independent Certification School Date District No. 5/11/79 14 7/31/81 13/14 5j19/62 11/16 1/20/84 3/15/84 12/24/85 10/22/86 1OJ24/86 13/14 16 13 16 14 EXHIBIT B Ch. 719, Art. 12 LAWS of MINNESOTA for 1988 1996 Sec. 24. Minnesota Statutes 1987 Supplement, section 469.177, is amended by adding a subdivision to read: Subd. 10. PAYMENT TO SCHOOL FOR REFERENDU;�i LEVY. 'The ro�•isions of this subdivision a°nly to tax increment financine districts and ro'�cts for which certi6cation was rc uested before May 1, 19gg, that are located in a school district in which the voters ha�•e apDroved new millaee or an increase in mi�ilaae after the tax increment financin¢ district was certified � if there are no outstandina bonds on Mav 1j 1988, to which incrcment from the district is led ed or� if the referendum is a roved after Mav 1, Iggg, and there are no bonds outstandinQ at the time the referendum is approved, that were issued before May 1, I9gg, or � if the refcrendum increasinrt the mill rate was a roved after the most recent issue of bonds to which increment trom the district is lep dQed' If clause � or � a lies the authoritv must annua�lv p� to the school district an amount of increment e uai to the increment that is attributable to the increase in the milt rate under the referendum. If clause � a lies uFOn a roval � a maioritv vote of the overnin body of the munici- ap litv and the school board, the authoritv must �ay to the school district an amount of increment e ual to the increment that is attributable to the increase in the mill rate under the referendum. The amounts of these increments may be ex endcd and must be treated � the school district in the same manner as rovided for the revenues derived from the referendum le�; a roved � the voters. S�c. 25. Minnesota Statutes 1987 Supplement, section 469.179, is amended to read: 469.179 EjCISTII�'G PROJECTS, Subdivision 1. EXETiPTION. The provisions of'sections 469.174 to 469.178 shall not affect any project tor which tax increment cenification was requested pursuant to law prior to August 1, 1979, or any project carried on by an authority pursuant to section 469.033, subdivision 5, with respect to which the governing bodZ has by resolution designated properties for inclusion in the . district prior to August 1, 1979, except: (1) as otherwise expressly provided in sections 469.174 to 469.178; or (2) as an authority elects to proceed with an ezisting district, under the provisions of sections 469.174 to 469.178; or (3) �#ef err5" err�sfgert�e�a e€' �he geegre�#ie srea e#' en e.�st�rrg �e.,t 3��„ ��ee +� � s�e�! s�btee� }ke �� ' ��9; s�e� be seee+t�kshe� +R �+esst fe �e fer�y e� �� e�f e� t�e eR}efge- subdivision 2; or �9 ��9 �� as rovided in �4� � � � �� Y�e � �� section 469.177, subdivision 3, clause (b), shall apply to all development districts created pursuant to Minne- sota Statutes 1978, chapter 472A, or any special law, prior to August 1, 1979. New Iangaa;e is todinted by underline, deledons by str+keeyf, B-1 EXHIBIT B 1997 LAWS of MINNESOTA for 1988 Ch. 719, Art. 12 Subd. 2. APPLICATION TO EkISTI1G DISTRICT'S. If the develonmcnt or ndevelopment acti��it within the rp oiect or district of a tax increment financin rD OI�CI ccrtified prior to Au ust j 1979, is extended be��_ond the sco of activit set fonh in the district's redeveloument plan under h4innesota Stat- utes, chavter 462• or Minncsota Statutes, chavtes 472A, if a�plicabie, af'ter May 1 1988, the authorit must with r� to the new activit conform to the orovisions of scctions 469.174 to 469.178 w�th the followin exceotions. � Section 469.175, subdivision ,31 paraAraphs � and �, shall not aaviy Furthermore, the provisions of section 473F.02, subdivision j shall continue to an�ly to the entiro district, if aavlicable. b� Section 469.177. subdivision j shall not aaulv. Sec. 26. CITY OF VIRGII�`IA TAX INCREMENT FINMCING DLS- TRICT; Pa►RCEIS INCLUDED. Redevelopment tax increment financin district No. 1 in enterorise zone development district No. 3 in the c� of Vi inia is deemed for all purvoses under Minnesota Statutes, sections 469.174 to 469.179 to includ� the foilowln ap rcels of real ro rt as of June 12. 1984: � Parcel No. 90-124-245 _� 79.2' of Lot i and all of L.ot j Block 3 Olcott Addition; � Parcel r'o. 90-125-247 _ I.ot 3 Block 3j Olcott Addition; and � Parcel No. 90-125-270 : I.ot � Blcek 3, Olcott Addition. S�c. 27. ORIGINAL ASSESSED VALUE. The ori 'nal assessed value of the ap rcels of real ro ert described in sections 24 to 26 is deemed for all puraoses under Minnesota Statutes, scctions 469.174 to 469.179 to be the oriAinal asscssed value of those ap scels as af June 12, 1984. � Sec. 28. CAPTURED ASSESSED VALUE. The captured assessed value of the a� rcels of real ro ert described in sactions 24 to 26 is deemcd for all purposes under Minnesota Statutes, sections 469.174 to 469.179 to be the increased assessed value of those a� rcels com�uted in th� manner vrescribed bv Minnesota Statutes, section 469.177, and in accord- ance wzth sections 26 to 28. Sx. 29. TRAI�'SITION RULES. � The provisions of sections j 6 10, and 14 do not apP1Y to pmnosed tax increment financin districts for which the authoritv called for a public hearin in a resolution dated March 23• ,1987, and for which a public hearin was held on ADriI 28, I987. The provisions of Minnesota Statutes 1987 Supvlement, I�ew langu�e is indiated by underline, deletions by sl�eeui. B-2 e tiy ,. r AGREEMENT This Agreement is dated as of , 198 , is by and between the City of Fridley, Minnesota, and Independent School District No. 13, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively:� ��City�� Minnesota. "HRA" Authority Minnesota. means the City of Fridley, means the Housing and Redevelopment in and for the City of Fridley, "School District" means the Columbia Heights School District, Independent School District No. 13. "Project" means Housing and Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. "1985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May l, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August 1, 1986. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 8 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "Subdivision" means Laws of Minnesota 1988, Chapter 719, Article 12, Section 24 (a copy of which is attached hereto as Exhibit B), to be codified in the Tax Increment Act as Minnesota Statutes, Section 469.177, Subdivision 10. 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) TIF District No. 6 is located entirely within the boundaries of the School District, and a portion of TIF District Nos. 2 and 4 are located within the boundaries of the School District. (c) None of the property within TIF District Nos. 1, 3, 5, 7, and 8 is located within the boundaries of the School District. ( d) It i s the purpose of thi s Agreement to provide for payment of certain tax increments to the School District pursuant to and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and -2- agreements heretofore made respecting the application of tax increments from the TZF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 from tax increments Nos. 1 through 6, principal maturity 1, 2000. (e) The 1986 from tax increments Nos. 1 through 6, principal maturity l, 2000. G.O. Bonds are payable derived from TIF District and the final scheduled of those Bonds is February G.O. Bonds are payable derived from TIF District and the final scheduled of those Bonds is February (f) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds were outstanding on May 1, 1988, and are outstanding on the date of this Agreement. 4. Ret�resentations of the School District. (a) On October 5, 1981, the electorate of the School District approved a 5.0 mill =c� continuous levy first effective for the � 1981 payable 1982 property taxes. This levy is hereinafter referred to as the "1981 Levy". (b) On September 23, 1986, the electorate of the School District approved a 7.0 mill continuous levy first effective for the 1986 payable 1987 property taxes. This levy is hereinafter referred to as the "1986 Levy". 5. Payment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, beginning with such tax increments relating to the 1987 payable 1988 property taxes, as f ollows : (a) TIF District No. 6. Since the 1981 Levy was approved before the date of certifica�tion of TIF District No. 6, the Subdivision does not apply to that Levy with respect to this District, and no tax increments attributable to said Levy from this District are payable to the School District. Since the 1986 Levy was approved after the most recent issue of bonds to which tax increment from TIF District No. 6 is pledged, pursuant to clause (3) of the Subdivision, the tax increment from TIF District No. 6 which is attributable to said Levy shall be paid to the School District; provided, however, that the City does not beli.eve that TIF District No. 6 will generate sufficient tax increment in the foreseeable future which, after the necessary first use of such increment as may be generated to honor the pledges made pursuant to the Tax Increment Obligations (particularly the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds) in accordance with paragraph 6 of this Agreement, will allow payment to the School District of any tax increment from TIF District No. 6 pursuant to this paragraph 5(a). • -- '4- (b) TIF District No. 4. Since the 1981 Levy was approved prior to the date of certification of TIF District No. 4, the Subdivision does not apply to that Levy with respect to this District. Since the 1986 Levy was approved after the most recent issue of. bonds to which increment from TIF District No. 4 is pledged, pursuant to clause (3) of the Subdivision, the tax increment from TIF District No. 4 which is attributable to said Levy shall be paid to the School District. (c) TIF District No. 2. Since the 1981 Levy was approved prior to the most recent issue of bonds to which increment from TIF District No. 2 is pledged, the Subdivision does not apply to that Levy with respect to this District. Pursuant to clause (3) of the Subdivision, the tax increment from TIF District No. 2 which is attributable to the 1986 Levy shall be paid to the School District. 6. Further Agreements. Nothing in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. -5- � � IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY, MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 13 School Board Chair Superintendent Q� � EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project No. 1 of the Fridley HRA TIF District 1 z 3 4 5 Name Center City Dioore Lake North Area Johnson Printing/ Skywood Mall Paschke 6 Lake Pointe 7 Winf ield g Shorewood Independent Certification School Date District No. 5/11/79 14 7/31/81 13/14 5/19/82 11/16 1/20/84 3/15/84 12/24/85 10/22/86 10/24/86 13/14 16 13 16 14 EXHIBIT B Ch. 719, Art. 12 LAWS of MINNESOTA for 1988 1996 Sec. 24. Minnesota Statutes 1987 Supplement, section 469.177, is amended by adding a subdivision to read: Subd. 10. RAl':�1ENT TO SCHOOL FOR REFEREIDUM LEVY. T'h� Dmvisions of this subdivision a°nlv to tax increment financinQ districts and ro'ects for which ccrtification w_as r� uested bcfore Mav is 19gg, that are located in a school district in which the voters have a roved new millaQC or an increase in mi'llaae after the tax increment financinA district was certified ,{� if there are no outstandinR bonds on Mav 11 l9gg, to which increment from the district is lep deed• or � if the referendum is a roved after Mav 1, 1 ggg, and there are no bonds outstandinQ at the time the referendum is a roved that were issued before I�4ay � 19gg, or � if the referendum increasinrt the mill rate was a roved after the most recent issue of bonds to which increment from the district is lep daed• If clause � or � a lies the authoritv must annuallv a+ to the schoo! district an amount of increment eQUal to the increment that is attributable to the increase in the mill rate under the referendum. If clause �3j a lies unon a roval � a maioritY vote of the overnin body of the munici- ap litv and the school board, the authoritv must p� to the school district an amount of increment e ual to the increment that is attributable to the increase in the mili rate under the referendum. The amounts of these increments may be ez ended and must be treated � the school district in the same manner as rovided for the revenues derived from the refcrendum 1� aa�roved � the voters. Sec. 25. Minnesota Statutes 1987 Supplement, section 469.179, is amended to read: 469.179 EXISTING PROJECTS. Subdi��sion I. E7�AtPTION. The provisions of sections 469.174 to 469.178 shall not af%ct any project fbr which tax increment certification was requcsted pursuant to law prior to August i, 1979, or any project carried on by an authority pursuant to section 469.033, subdivision 5, with respect to which the governing bodZ has by resolution designated properties for inclusion in the . district prior to August I, 1979, except: (1) as othecx:ise expressly provided in sections 469.174 to 469.178; or (2) as an authority elects to proceed with an ezisting district, under the provisions of sections 469.174 to 469.178; or �3) ��7' r�}e�ge�+e�}s e4' �he geeg� eres e€ ee� e�g t�e��c +nere- �E � � �� e �9t �; -i-4�9; s�e�! �e aeee+��4�s}�e� i� neeer�e�ree +� e� s�ta� se�}eet �he �epe�y e�e� es e fes�t e€' �he enlaf�e- �� 46�-�4 �e 469�-�8 as rovided in subdivision 2; or �4� � �� e i� �i-48& section 469.177, subdivision 3, clause (b), shall apply to all development districts created pursuant to Minne- sota Statutes 1978, chapter 472A, or any special law, prior to August 1, 1979. New lanpuape is indinted 6y underline, deletions 6y ��, B-1 EXHIBIT B 1997 LAWS of MINNESOTA for 1988 Ch. 719, Art. l2 Subd. 2. APPLICATTON TO E\ISTIIG DISTRICTS. If the develovment or redevelonment activit within the rp oject or district of a tax increm�nt financin rn oieci ccnified orior to Au¢ust l, 1979, is extended bevond the sco of activit set fonh in the district's redevelovment plan under t�4innesota Stat- utes, chavter 462• or Minnesota Statutes, chaptcr 472A, if avalicable, after May 1� 1988, the authorit must with regard to the new activit conform to the pro�isions of sections 469.174 to 469.178 with the followin excentions. � Section 469.175, subdi��ision 3, parattravhs � and �5,), shall not apvly. Furthermore, the provisions of s�ction 473F.02, subdivision 3, shall continue to anvly to the entire district, if avvlicable. �b Scction 469.177, subdivision j shall not �vlv. Sec. 26. CI'TY OF VIRGII�'IA TAX INCREMENT FINAIvCING DLS- TRICT; PARCELS INCLUDED. Redevelopment tax increment financin district No. 1 in enterprise zone development district No. 3 in the cit of VirRinia, is deemed for all pu oses under Minnesota Statutes, sections 469.174 to 469.179 to include the to1loW�n an rcels of real rp openy as of June 12. 1984: � Parcel No. 90-124-245 :� 79.2' of Lot 1 and ail of Lot j Block 3, Olcott Addition; � Parcel A'o. 90-125-247 : Lot 3� Block j Olcott Addition; and �3,� Parcel No. 90-125-270 _ Lot 4, Block 31 Oicott Addition. Sec. 27. ORIGINAL ASSFSSED VALL'E. The ori�inal assessed value of the parcds of real proverty described in sections 24 to 26 is deemed for all vuraoses under Minnesota Statutes, sections 469.174 to 469.179 to be the ori inal assessed value of those ap rcels as of June 12. 1984. � Sec. 28. CAP'I'URED ASSESSED VALUE. The ca�tur�d assessed value of the parcels of real ro ert described in sections 24 to 26 is deemed for all purposes under Minnesota Statutes, sections 469.174 to 469.179 to be the increased assessed value of those ap rcels comnuted in the manner nrescribed bv Minnesota Statutes, section 469.177, and in accord- ance w�th sections 26 to 28. Sx. 29. TRAI�STITON RUI.ES. � The pro�zsions of s�ctions 3 6, 10• and 14 do not apD1Y to ro sed tax increment financin districts for w•hich the authoritv called for a public hearin in a resolution dated March 23• 1987, and for which a public hearin was held on April 28. 1987. The provisions of r4innesota Statutes 1987 Suvvlement, T�w lan�uage is indinted b� underline, deleoons by stri�eeat. B-2 w� AGREEMENT This Agreement is dated as of , 198 , is by and between the City of Fridley, Minnesota, and Independent School District No. 14, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively: ��City�� Minnesota. "HRA" Authority Minnesota. means the City of Fridley, means the Housing and Redevelopment in and for the City of Fridley, "School District" means the Fridley School District, Independent School District No. 14. "Project" means Housing and Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. "1985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment tlote, dated December 20, 1985. � "�1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August l, 1986. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. t Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 8 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "Subdivision" means Laws of Minneso�a 1988, Chapter 719, Article 12, Section 24 (a copy of which is attached hereto as Exhibit B), to be codified in the Tax Increment Act as Minnesota Statutes, Section 469.177, Subdivision 10. 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) TIF District Nos. 1 and 8 are located entirely within the boundaries of the School District, and a portion of TIF District Nos. 2 and 4 are located within the boundaries of the School District. (c) None of the property within TIF District Nos. 3, 5, 6, and 7 is located within the boundaries of the School District. ( d) It i s the purpose of thi s Agreement to provide for payment of certain tax increments to the School District pursuant to and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and -2- � agreements heretofore made respecting the application of tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. (e) The 1986 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled princip�l maturity of those Bonds is February l, 2000. (f) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds were outstanding on May l, 1988, and are outstanding on the date of this Agreement. None of the tax increment expected to be received from TIF District Nos. 7 and 8 has been pledged to the payment of bonds as of the date of this Agreement. -3- t (g) TIF District No. 1 was certified prior to August 1, 1979, and neither the City nor the HRA has taken any action the effect of which would, pursuant to Section 469.179 of the Tax Increment Act, cause said District to become generally subject to the provisions of the Tax Increment Act. 4. Representations of the School District. (a) On September 20, 1983, the electorate of the School District approved a 6.5 mill levy extending for 5 years and covering the 1984 payable 1985 through the 1988 payable 1989 property taxes. This levy is hereinafter referred to as the "1983 Levy". (b) On September 23, 1986, the electorate of the School District approved a 2.0 mill continuous levy first effective for the 1986 payable 1987 property taxes. This levy is hereinafter referred to as the "1986 Levy". (c) On September 29, 1987, the electorate of the School District approved (i) a 7.0 mill continuous levy first effective for the 1987 payable 1988 property taxes and (ii) a continuous additional 6.5 mill levy first effective for the 1988 payable 1989 property taxes. These levies are hereinafter collectively referred to as the "1987 Levies". 5. Payment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, beginning with such tax increments relating to the 1987 payable 1988 property taxes, as follows: (a) TIF District No. 8. Since the 1987 Levies were approved after the date of certification of TIF District No. 8, and since on May 1, 1988, there were not bonds outstanding to which increment from -4- � TIF District No. 8 was pledged, the tax increments from TIF District No. 8 which are attributable to the 1987 Levies are automatically payable and shall be paid to the School District pursuant to clause (1) of the Subdivision. Since the 1983 Levy and the 1986 Levy were approved prior to the date of certification of TIF District No. 8, the Subdivision does not apply to those Lenies with respect to this District, and no tax increments attributable to said Levies f rom this District are payable to the School District. (b) TIF District No. 4. Since the 1983 Levy was approved prior to the date of certification of TIF District No. 4, the Subdivision does not apply to that Levy with respect to this District. Since the 1986 Levy and the 1987 Levies were approved after the most recent issue of bonds to which increment from TIF District No. 4 is pledged, pursuant to clause (3) of the Subdivision, the tax increment from TIF District No. 4 which is attributable to said Levies shall be paid to the School District. (c) TIF District No. 2. Since the 1983 Levy was approved prior to the most recent issue of bonds to which increment from TIF District No. 2 is pledged, the Subdivision does not apply to that Levy with respect to this District. Pursuant to clause (3) of the Subdivision, the tax increment from TIF District No. 2 which is attributable to the 1986 Levy and the 1987 Levies shall be paid to the School District. (d) TIF District No. 1. If TIF District No. 1 should in the future become generally subject to the Tax Increment Financing Act, then the tax increment received after such time which is attributable to the 1983 Levy, the 1986 Levy, and the 1987 Levies shall be paid to the School District. 6. Further Agreements. Nothing in this Agreement is intended or shall be� applied in such a manner as -5- � to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY� MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 14 School Board Chair Superintendent Q:� EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project No. 1 of the Fridley HRA TIF District 1 � 5 Name Center City Moore Lake North Area Johnson Printing/ Skywood Mall Paschke Lake Pointe Winf ield Shorewood Independent Certification School Date District No. 5/11/79 14 7/31/81 13/14 5/19/82 11/16 1/20/84 3/15/84 12/24/85 10/22/86 10/24/86 13/14 16 13 16 14 EXHIBIT B Ch. 719, Art. 12 LAWS of MINNESOTA for 1988 1996 Sec. 24. Minnesota Statutes 1987 Supplement, section 469.177, is amended by adding a subdivision to read: Subd. 10. PAYMENT TO SCHOOL FOR REFERENDUM LEYY. The provisions of this subdivision analv to tax increment financinA districts and ro'ects for which cenification was re uested betore Mav 1� 1 ggg, that are located in a schooi district in which the voters have a roved new millaAe or an increase in millaae atler the taz increment financine district was certified � if there are no outstandinA bonds on Mav j Iggg, to which increment from the district is led ed or � if the referendum is a roved after May j i 9gg, and there are no bonds outstandinQ at the time the referendum is aaaroved, that were issued beforo May I, 19gg, or � if the referendum increasinQ the mill rate was a roved after the most recent issue of bonds to which increment trom the district is led ed. If clause � or � a lies the authoritv must annuallv � to the school district an amount of increment e ual to the increment that is attributable to the increase in the mill rate under the referendum. If clause � a lies u on a roval � a maioritv vote of the overnin bodv of the munici- ap litY and the school board, the authoritv must pa� to the schooi district an amount of increment e ual to the increment that is attributable to the increase in the mili rate under the referendum, The amounts of these increments maY be ezaended and must be treated � the school district in the same manner as rovided for the revenues derived from the refcrendum I� a roved � the voters. Sec. 25. Minnesota Statutes 1987 Supplement, section 469.179, is amended to read: 469.179 EXISTING PROJECI'S, Subdivision 1. EXEMFTION. The provisions of sections 469.174 to 469.178 shall not affect any project for which tax increment certification was requested pursuant to law prior to August l, 1979, or any project carried on by an suthority pursuant to section 469.033, subdivision S, with respect to which the governing bodZ has by resolution designated properties for inclusion in the district prior to August 1, 1979, except: (1) as otherwise ezpressly provided in sections 469.174 to 469.178; or (2) as an authority elects to proceed with an existing district, under the provisions of sections 469.174 to 469.178; or �{3) N+e� e� e�}�e+�en�s e�' tfie gee��ie erea ef e� e�iy�+�g te� �+erti neeer�e�ee w;� e� y}�} �}he �� -; �9; she�l be eeeemp4t� ;R r+e�� e �he �ern�s e� �� 8s e res�� e€ �#►e en}e� subdivision 2; or �� g �� as rovided in �4� � � "� �� e�ebk M �989; section 469.177, subdivision 3, clause (b), shall apply to all development districts created pursuant to Minne- sota Statutes 1978, chapter 472A, or any special law, prior to August 1, 1979. New langoa�e [� in�jnted by underline, ddetions by st�4lceeuf. B-1 EXHIBIT B 1997 LAWS of MINNESOTA for 1988 Ch. 719, An. 12 Subd. 2. APPLICATION TO E.�ISTING DISTRICI'S. If the develonment or redcvetoament activit within the rp oiect or district of a tax increment 5nancin rp oiect certified �rior to Au�ust 1, 1979, is extended be��ond the sco e of acti��t set forth in the district's redevelooment plan under Minnesota Stat- utcs, chavter 462• or Minnesota Statutes, cha ter 472A, if an�licablc, after T� I, 1988, the authorit must with r_eAard to the new activit conform to the provisions of sections 469. f 74 to 469.178 W�th the fol{owin exceptions. � Section 469.175 subdivision 31 paraAravhs � and ,�, shall not annlv Furthennore, the ,pro��isions of section 473F.02, subdivision 3, shall continue to aPAIY to the entire district, if a� i�p •cable• �b Scction 469.177, subdivision 3, shall not anvlv Sec. 26. CTTY OF VIRGINIA TAX Il\CREA'IENT FINMCING DIS- TRICT; PARCELS INCLUDED. Redevelo�ment tax increment financin district No. 1 in entervrise zone develoamcnt district No. 3 in the c� of Virt�inia, is decmed for all purvoses under I�4innesota Statutes, sections 469.174 to 469.179 to include the follow�n ap rcels of real ro rtv as of June l2. 1984: � Parccl No. 90-124-245 -� 79.2' of Lot 1 and all of L,ot 2 Block 3 Olcott Addition; + � Parcel I�o. 40-125-247 : Lot 3j Block j Olcott Addition; and � Parcei No. 90-125-270 _ Lot j Block j Olcott Addition. Sec. 27. ORIGINAI. ASSESSED VALUE. The ori�inal assessed value of the ap rcels of real rQ oUertv described in sections 24 to 26 is deemed for all vurposes under Minncsota Statutes, sections 469.174 to 469.179 to be the ori inal asscssed value of those ap rcels as of June 12. 1984. � Scc. 28. GAPTURED ASSESSED VALUE. The captured assessed value of the ap rcels of real ro ert described in sections 24 to 26 is deemed for all purpo5e5 under Minnesota Statut�s sections 469. l74 to 469.179 to be the increased assessed value of those ap rcels comouted in the manner prescribcd bv Minnesota Statutes, section 469.177, and in accord- ance with sections 26 to 28. Sec. 29. TRAI�SITION RULFS. � The provisions ot scctions 3, 6 10, and 14 do not 8Dply to rp ovosed tax increment financin districts for w•hich the authoritv cailed for a�ublic hearin in a resolution dated March 23• 1987, and for which a vublic hearin v.�as held on April 28. 1987. 1'he provisions of Minnesota Statutes 1987 Supplement, I�ew Isnanage is indinted Dy underline, deletions b�• s4neice�eu+. B -' 2 _ _ _ AGREEMENT This Agreement is dated as of , 198 , is by and between the City of Fridley, Minnesota, and Independent School District No. 16, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively:� "City" means the City of Fridley, Minnesota. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "School District" means the Spring Lake Park School District, Independent School District No. 16. "Project" means Housing and Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. "1985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Tncrement Refunding Bonds, Series 1986, dated as of August 1, 1986. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. ► Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 8 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "Subdivision" means Laws of Minnesota 1988, Chapter 719, Article 12, Section 24 (a copy of which is attached hereto as Exhibit B), to be codified in the Tax Increment Act as Minnesota Statutes, Section 469.177, Subdivision 10. 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) TIF District Nos. 5 and 7 are located entirely within the boundaries of the School District, and a portion of TIF District No. 3 is located within the boundaries of the School District. (c) None of the property within TIF District Nos. l, 2, 4, and 8 is located within the boundaries of the School District. ( d) It i s the purpose of thi s Agreement to provide for payment of certain tax increments to the School District pursuant to and in accordance with the provision of to the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and -2- Y agreements heretofore made respecting the application of tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. (e) The 1986 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. ( f) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds were outstanding on May 1, 1988, and are outstanding on the date of this Agreement. None of the tax increment expected to be received from TIF District Nos. 7 and 8 has been pledged to the payment of bonds as of the date of this Agreement. -3- 4. Representations of the School District. (a) On October 8, 1981, the electorate of the School District approved a 5.0 mill continuous levy first effective for the 1981 payable 1982 property taxes. This levy is hereinafter referred to as the "1981 Levy". (b) On February 27, 1986, the electorate of the School District approved a 6.0 mill continuous levy first effective for the 1986 payable 1987 property taxes. This levy is hereinafter referred to as the "1986 Levy". 5. Payment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, beginning with such tax increments relating to the 1987 payable 1988 property taxes, as follows: (a) TIF District No. 7. Since the 1981 Levy and the 1986 Levy were approved prior to the date of certification of TIF District No. 7, the Subdivision does not apply to those Levies with respect to this District, and no tax increments attributable to said Levies from this District are payable to the School District. (b) TIF� District No. 5. Since the 1981 Levy was approved prior to the date of certification of TIF District No. 5, and since the 1986 Levy was approved prior to the most recent issue of bonds to which increment from TIF District No. 5 is pledged, the Subdivision does not apply to either the 1981 Levy or the 1986 Levy with respect to this District. (c) TIF District No. 3. Since the 1981 Levy was approved prior to the date of certification of TIF District No. 3, and since the 1986 Levy was approved prior to the most recent issue of bonds to which -4- increment from TIF District the Subdivision does not the 1981 Levy or the 1986 to this District. No. 3 is pledged, apply to either Levy with respect 6. Further Agreements. Nothing in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY, MINNESOTA Mayor ty Manager INDEPENDENT SCHOOL DISTRICT NO. 16 School Board Chair uperintendent -5- , EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project 210. 1 of the Fridley HRA TIF District 1 2 . 3 4 5 6 7 8 Name Center City Moore Lake North Area Johnson Printing/ Skywood Mall Paschke Lake Pointe Winf ield Shorewood Independent Certification School Date District No. 5/11/�9 14 7/31/81 13/14 5/19/82 11/16 1/20/84 3/15/84 12/24/85 10/22/86 10/24/86 13/14 16 13 16 14 EXHIBIT B Ch. 719, Art. 12 LAWS of MINNESOTA for 1988 1996 Sec. 24. Minnesota Statutes 1987 Supplement, section 469. t 77, is amended by adding a subdivision to read: Subd. 10. PAYMENT TO SCHOOL FOR REFEREIDU:IZ LEVY. 7'he provisions of this subdivision a°nly to tax increment financin¢ districts and ro'ects for which certification was re uested before Mav 1, i9gg, that are located in a school district in which the voten ha�•e a roved new milla�e or an inerease in m�'llaQe after the tax incr_ement financinQ district w_as cenified � if there are no outstandin¢ bonds on Mav j 19gg, to which increment f'rom the district is led ed or � if the reterendum is a roved after Mav j 1988, and there are no bonds outstandinR at the time the refer_ endum is ap�roved, that were issued before Mav j 19gg, or � if the referendum increasinR the mill rate dwas a roved after the most recent issue of bonds to which inerement from the istrict is led ed. If clause � or � a lies the authoritv must annuailv p� to the school district an amount of increment e ual to the increment that is attributable to the increase in the mill rate under the referendum. If clause � a lies unon a roval � a maiority vote of the overnin bodv of the munici- aP IitY and the school board, the authoritv must p� to the school district an amount of increment e ual to the increment that is attributable to the increase in the mill rate under the referendum. The amounts of these increments may be ex ended and must be treated � the school district in the same manner as rovided for the revenues derived from the refcrendum 1� a roved � the voters. Sec. 25. Minnesota Statutes 1987 Supplement, section 469.179, is amended to read: 469.179 EXISTIIVG PROJECI'S. Subdivision 1. EJ�AIPTTON. The pro�7sions of sections 469.174 to 469.178 shall not affect any project for which tax increment certification was requcsted pursuant to law prior to August l, 1979, or any project carried on by an suthority pursuant to section 469.033, subdivision 5, with respect to which the governing bodZ has by resolution designated propenies for inclusion in the district prior to August 1, 1979, except: (I) as otherwise expressly provided in sections 469.174 to 469.178; or (2) as an authority elects to proceed with an existing district, under the provisions of sections 469.174 to 469.178; or (3) 4�e�E sfry efl}s�ger�efl.t.y e�' �he ge�egre�r�e es�es e€ er� e�sst+ng te�c 'reefe- e�eeer�eree +Mfh er� �}} �� he �� ' }�9; s�e�1 be eeea� +tt +ner�� 4e t�he ��" e�e� es a fessr�t e4' t�te en}efge- � � �'� �� fa �S as rovided in subdivision 2; or �4� � � "� ��s �e�e�fe i� -k�S9; section 469.177, subdi�•ision 3, clause (b), shall apply to all development districts created pursuant to Minne- sota Statutes 1978, chapter 472A, or any special law, prior to August I, 1979. New language is indinted by underline, deleNons by st�eer4, B-1 EXHIBIT B �gg7 LAWS of MINNESOTA for 1988 Ch. 719, An. 12 Subd. 2. APPLICATION TO E�ISTI:�G DISTRICIS. If the development or redevelopment acti�•it within the rv oiect or district of a tax increment financin rD OjeC{ cenified nrior to Au ust j 1979, is extcnded be�•ond the sco of acti��tv set fonh in the district's redevelopment nlan under Minnesota Stat- utcs, ch� 461,•or Minnesota Statut�s chavter 472A, if a iDp iCable, after M1 j 1988, the authority must with re ard to the new activitv conform to the provisions of stctions 469.174 to 469.178 with the followinq exceotions. � Section 469.175, subdivision j panRraphs � and �, shall not aanty. Furthermore, the nro��sions of section 473F.02, subdivision j shall continue to apDly to the cntiro district, if aoalicable. b� Section 469.177, subdivision j shall not av�lv. Sec. 26. CITY OF VIRGITIA TA.�C INCREME:VT FINAIVCING DIS- TRICT; PARCEIS I:�CLUDED. Redevelooment tax increment financin district No. 1 in enterprise zone devetooment district h`o. 3 in the cit of Vir inia is deemed for all ourposes under Minnesota Statutes, sections 469.174 to 469.179 to include the followzn an rcels of real proverty as of June 12, 1984: � Parcel No. 90-124245 :� 79.2' of Lot 1 and all of Lot j Block 3 Olcott Addition; � Parcel I�'o. 90-125-247 _ Lot 3 Block 3, Olcott Addition; and � Parcel No. 90-125-270 _ Lot 4j Block j Olcott Addition. Sec. 27. ORIGI:VAI. ASSFSSED VALUE. 1'he ori 'nal ass�ssed value of the aD fa1S of real ro ert described in sections 24 to 26 is deemed for all puruoses under A4innesota Statutes, sections 469.174 to 469.179 to be th� ori inal asscssed valuc of those av rcels as of June 12• 1984. . Sec. 28. CAP►VRED ASSESSED VALUE. The captured assessed value of the ap rceis of real so ert described in soctions 24 to 26 is deemed for all Qurvoses under I�4innesota Statutes, sections 469.174 to 469.179 to be the increased assessed value of those a�rcels computed in the manner oracribed � Minnesota Statutes, section 469.177, and in accord- ance w�th sections 26 to 28. Sec. 29. TRAI�SITION RLJLFS. � The vro�zsions of s�ctions j j 10, and 14 do not avvly to ro sed tax increment financin districts for W�hich the authoritv called for a public hearin in a resolution dated March 23, 1957, and for which a vublic hearin was held on April 28. 1987. The orovisions of 2.4innesota Statutes 1987 Sunnlement l�ew langua{�e is indicated by underline, deledoas b�• �ceeuk B-2 � ro � ,� • To: William Burns, City Manager �• FROM: DATE: Jock Robertson, Community Development Director John Flora, Public Works Director December 8, 1988 REGARDING: Light Rail Transit (LRT) Study Status and Policy Options Background The Minnesota Legislature recently delegated responsibility for LRT planning and operations to metropolitan counties. Anoka County responded by creating a Regional Railroad Authority to study route options for what is known as the Northeast Corridor. This corridor connects downtown Minneapolis with southern Anoka County (see Figure 1). Currently, no decision has yet been made to build an LRT. To assist the process, the Authority has established three advisory committees to plan and evaluate LRT. The three advisory committees and the Fridley representatives appointed by the City Council are: 1. 2. 3. Corridor Advisory Committee (CAC), citizens/business people, Scott Lund, former Jaycee President. � Technical Advisory Committee (TAC), city staff, John Flora, Public Works Director. Intergovernmental Advisory Committee (IAC), elected officials, Steve Billings, Councilmember. Current Issues The Authority faces three major policy issues: 1. 2. 3. Should a northeast corridor LRT be developed? If developed, where will the system be located? Will the system be high speed or local? LRT December 8, 1988 Page 2 The cities of Minneapolis, Columbia Heights, Fridley, Spring Lake Park, Blaine and Coon Rapids are impacted by these policy decisions. The first issue will only be considered when Hennepin County decides to proceed with an LRT. The evolvinq study appears to support a regional system which will connect with other regional lines in downtown�Minneapolis. The level of service will be somewhere between a high speed, long distance rail system to the north, such as San Francisco's BART, and a local system in Minneapolis, such as the old Twin City Rapid Transit System, which ran trolleys with automobile traffic and stopped at every street corner. The LRT system right-of-way being studied here attempts to separate transit from automobile traffic and provide stops averaging every half mile in Fridley and Columbia Heights. These stations will provide some combinations of: 1. Walkup access 2. Drop-off/pick-up access 3. Transfer with feeder bus lines 4. Park and ride facilities In the interim, work proceeds on the second and third issues; where to locate the line and the stops? This should be played out as a mix of automobile, bus and LRT in the Anoka County Transportation Plan update currently in progress. At this time, the TAC and the CAC have narrowed the range of LRT route alternatives to Central Avenue and University Avenue, including potential combinations which would connect the most attractive portions of each alignment. Location decisions should theoretically take into account: 1. Aesthetics, including both visual and audible 2. Right-of-way and land use impacts. 3. Service area characteristics. 4. Economic development impacts Aesthetically, some questions have been raised about possible negative impacts of LRT. From the videos and films of similar systems in Portland, Calgary and San Diego, it appears that the proposed system is quiet and attractive. The high level of noise and visual blight associated with systems such as the old Twin City street cars or the Chicago elevated are in fact not present with the proposed •LRT system. LRT December 8, 1988 Page 3 University Avenue N.E. from Northtown Shopping Center at Highway 10 south to 27th Avenue N.E. in Minneapolis provides the most available right-of-way with the least amount of traffic constraints. The east edge between the frontage road and the northbound lane is the most favorable location. However, Central Avenue N.E. south of I-694 provides greater accessibility for population, work trips and non-work trips (see Figure 2) and better right-of-way characteristics in Minneapolis (Figure 3). The Columbia Heights City Council currently has some reservations about LRT using Central Avenue through their "downtown", apparently because some street parking would be displaced. Conversely, in NE Minneapolis the southerly end of University Avenue right-of-way is more constrained than that on Central Avenue. A rail spur several blocks west of University Avenue may be available as an alternate alignment. Recommendation Figure 4 summarizes an analytical comparison of the two alternative routes. The most important conclusion is that the potential negatives associated with the University Avenue route can be solved by crossovers to Central Avenue, creating a University/Central hybrid route. On the other hand, negatives associated with an exclusive Central Avenue route cannot be avoided. whatever Columbia Heights and Minneapolis decide, it seems advantageous for the City of Fridley to favor one of several University/Central hybrids which avoid Moore Lake and serve our Center City development (see Figures 5- 8). This would provide us the service and economic development benefits which the consultants' research has shown to occur with this type of facility. The LRT planning process appears to be headed toward the same conclusion. The CAC and TAC are currently reviewing a hybrid system which appears to satisfy most of the right-of-way, service and economic issues identified to date (see Fi ure 8). If the City Council has reservations or problems with� his direction, a position should be established and City representatives informed. In addition, the Planning Commission is concerned that it has been bypassed in this process so far. We recommend that the Council and the Planning Commission be briefed on the progress of the Anoka- Hennepin County Regional Transportation Committee to date. They should have the opportunity to identify concerns or issues to be addressed by City representatives. J LR/ dn M-88-363 � ' - • � ;i '� �..Y ', S`..�. , �r;. �: :. ,:s: — .. _. . ----.-----. . . 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O V �.- r ev E .-- C � O .� � M d Q d' .y b N C C �•- i � � c w �o �o o .- v � c .r � rn t� a� Z .a� .r - +, ¢ c a� v� c v� a � u �.r > o N L Z 1� � Y O � U � O � � � � U CC Sd� N � � � u c� u b A �c�O � E E � � � Z 2 Z � � � b A4 Ac� E E E ... ..� �. Z Z Z � � � t� t� V E E � Z Z Z a�°i � ++ Q > A � N � � � i .�+ Z � t y � r � O � 3 'r' � � � � r d OG OC �- � .-+ 4- r 1 N C uf O N �� W � > a o .� � � � a � E GC CO � .-r � N 2 o .. T b 3 1 � � v O �O 1 Q t�-Ei H � � � N � � CC A N � t� O L +� d r pG �f �1 N {.� i� C 0) �L �It N L � L � r b iO C C/ H L� C � r C N �L O +► � � � O 'Q L� L � C Q li N G�. F- J J Figure 3 � C � L � a 6. O 'O W � � C 07 a a� � C t�i • N u� .�- C� �.. .r i� N tl-� d N O � N N � �-1 N u� a� o c L r a �c � c� �o � a o � �. ro Q N t�. L d � t i�+ �..� •r i� N Y- N Z � �..i w � O 3 O r � i0 O � .-� .G O � � i� - a � r. � `� L N � L � � N � c� V- � O � � � L � N r r A1 N � L �O t0 N � H O .- Y d i0 O Q 3 N � = vf O � � A Z * 0 CRITERIA ALTERNATIVES UNIVERSITY AVE. CENTRAL AVE. Aesthetics/Environment Visually more compat- ible with urban design of University Ave. Corridor. Right-of-Way and Land Use Compatibility (Figure 3) Access/Service Area (Figure 2) Economic Stimulus Greater right-of-way problems in Minne- apolis, but possible to correct by using I-694 or 37th Ave. crossover to Central Ave (see Figures 5-8). Less area of access south of I-694 but possible to correct by using I-694 or 37th Ave. crossover to Central (see Figures 5 and 6). Helps Fridley Center City development. More Fridley busi- nesses on this route. Moore Lake crossing visually less com- patible with lake and park setting, and will require environmental studies. Moore Lake crossing will require fill- ing. Greater area of accesses south of I-694. Helps Moore Lake Commons develop- ment. Fewer Fridley businesses on this route. --------------------------------------------------------------------- NET EFFECT More positives. 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HE) �.P..,.. _ �� __lf .;; u:;, `:SCa� � �'� � .._ --... u�tir ` ��` • . �;, .;AYTHONY :;y. ��f�+ _ �i• ' �`` �� L '� -� �^ •, .� ��' ," = 4r I �, f/� - - � � . - i _ _.,} v rr ' �� j 3% � � - •.L •.1 • � �° i .=' aN ' •.. • • . i� )' • —1 •'.� ..�—`T �r � 1 i : - - _ - -� � M 1 N N � O L I 5 , # ,� .� R4' EVlLLF.Ii . � y� ' .� ,:..- .a s . � f .: ._ _ L � : � � ' i` x;, _ � —T--�r+7r'.: � K ,�, .., J � : �' Y- \,• r sit ♦ � �I'.:DE JAL - � ' , G.iL:SFt VALLEF. � `� • � _. , y a•, ._ .:� , ...� . . . _ . , . . - .n 2 ` ..� �- ..�. , • �� il.\ w ��., ` ,�. . : � �... ,- ::. � � t tS� ; ' � .:. ; .-s � , ` 'FF�� + ..._ , , . � .' , '\ :. . � � .. ., � . o. ..` ,� � �.,, . , , 4 �. .... , - . . . � g . . .« . _ ' T •'' � ',' , i 4 � � • ��t'�. _.. � , � FALC O �t ....,y C ;,, J \ �. H ILN't.. .. .... : �"► � : ..- . - �� :�,� (�.� • . f�rr �� ' ` - \ ��44, �� . ,` � t � 1 T,T i!e :-;�`�� ---.: _ :.y� ,.� ~ � %,,, 1 -,�,�� ... t { � � � R:� \ � �•`';s-_ ��.:. -1 . � � _ . . , . ...,, , : ,':.: . , , ( ..._ � : �.: ._ � . . -.1_ _ - . �:.�. , ' . .i __.. . • _5., ' _ � , "'� ,�,s'`' ! E: � �?'{'. ��!—� "' �- �. �� r� � `=� i :.� . :. ► Northeast Corridor Study Potentiat Major Comprehensive LRT System Plan Travel Destinations Anolra Cor�nty/flen»epin County Regio�al Ra!l�oad Autboritics I-694 Crossover Fgure 5 _ o , 2 ��es ��, �ctc�� ,._- � .. _�_ __ _, _.._ .._.. __-- --- --------- - . . _ _ . -."��1 v��m_, `• ' � .. �_ � � - � �� ."C 1: .�b.1r�. � - . M ;�,�„� � `^�, � l _ � � .. r• �� , . �. �.::: ' � Rl�/�� ,,.:,;;; � .i_ �.>` ' . �i.= _, :"'.`. , . . � � � � � � � t^�800�� t': �`� ; -� �,v �� . � � � � ..� :•=% , ' � - , :� ��:_ - �°'—��'� Ip , ;;,r.,FU:i�1E - �� _ �� \ 'i'�� _ �3 � INDUS ��L P RK '' � - OSAI �` � au►i�E \7 � .325��" �'�� .�\� .\\ :�RAPID:. 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' �� \ �.. r� :� • � ..x••� , . • ... ��' .., _ _ Y ' � • i' �'� �. . ., � 5=' ( _ � !'" �CJ��,�' � �: ? . � .�y: . . : . . �� . .., � ,� �� , . . _ �L1. \� __ k.L,H. � .�, , e . :� � \ H�.( TS � Y�.. {';�'��..�--�_ ' " y — * 'C'..rf , ��,-`�" -{,.; ~'1 �'.. v� � •'�1 ' `��:- � . , . f .- . .. � . .. . .• ' _ ` . : . � • �x�: _�... . :. yC,. , J +, �, ,c ( �..,l.r . . ��.�: . ` � �l _ �- -> 'T— 1 � � i � . L ..� . . . .:; � , . � , ` tJt ..� � .. , �"'�{� . . `. .� � ` . ~ ~ '�` �j ` �� a,� 1 ^,��I'�� ci h::: ��•.�. �. ..:.�it ' � i� __. �� 1��-�'� c ��.� , ;: Northeast Corridor Study Potential Major Comprehensive LRT System Plan Travel Destinations Anoka Cor�nry/Ilerinepin Counly Regiana! Rallroad Aulbori[ies Figure 8 0 1 2 Miles North �'�,�1�' �. � � UIYOF fRIDLEY C0�IIIMUNI'i'Y DEVELOPMENT' TO: FROM: DATE: REGARDING: Backc�round DEPART'1VlENT M EMO RAN D l.iM � � ,�.. William Burns, City Manager Jock Robertson, Community Development Director Barbara Dacy, Planning Coordinator December 7, 1988 Senior Housing Study and Survey As a result of the City Council conference meeting on October 31, 1988„ staff was directed to prepare an outline and cost estimates for �� study to determine the demand and housing preference of low to moderate income seniors for senior housing. The City Council conc]Luded that the results of this study would provide better info�:�mation regarding senior housing demand in Fridley and would be able to guide the HRA in analyzing requests for financial assi::tance for senior housing projects. Propc>sal We cc►ntacted four private consulting firms and two universities to detez-mine a range of costs and survey methods to complete the stud�►. We also consulted Hal Freshley, from the Aging Department of tt�e Metropolitan Council, and Rod Johnson, from the Department of Hc�using and Urban Development, to gain their recommendations regai-ding survey methods and recommended consultants. We r�acommend Health Planning and Management Resources, Inc. to condL�ct the senior housing study because of its experience with senic�r housing projects in the metropolitan area (Dakota County and c�ther cities) and also because of its comprehensive approach to accomplish the study's objectives. Attached for Council consi.deration is the proposal from Health Planning and Management Resou:rces, Inc.. • The consultant proposes to complete the study in two phases. The first. phase will consist of an analysis of demographic and socio- econc�mic data, an inventory of existing senior housing and services in trie area, and preparation of preliminary demand projections. The s�econd phase consists of a mail survey to selected households follc�wed by two focus groups with Fridley seniors. The consultant will prepare a written report and will present the findings of the study� to the City Council and HRA. The consultant estimates nine weeks� will be necessary to complete the study. � Senior Housing Report December 6, 1988 Page 2 The process to determine the sample households is described by the consultant in its letter included in the attached proposal. The consultant has also included an example of a survey used in the City of Lakeville (this was for a non-subsidized project). The consultant will modi�fy the survey questions in order to address the objectives of the City's study. It has been the consultant's experience that a mail survey is more effective than a phone survey (Hal Freshley from the Metropolitan, Council confirmed this approach). A mail survey to seniors tends to generate a higher response rate than a phone survey. Seniors can complete the mail survey at their leisure instead of being interrupted by an unknown phone caller. Using focus groups as a survey technique is highly recommended by the Metropolitan Council and other consultants in the senior housing industry. Two focus group meetings are proposed with 8 to 12 seniors participating. The consultant notes in the proposal that the results of the focus group will produce "more qualitative data regarding preferenced and perceived needs for senior housing including specific design, cost and service considerations". The focus groups can also clarify the behavior indicated in the mail survey. The consultant has submitted a proposed draft of the consultant contract which stipulates a fee not to exceed $8,500 plus the cost of printing and postage for the mail survey and expenses such as mileage and report duplication. Printing and postage costs are estimated at $2,000 for a 1,000 household sample. Should the Council request a larger sample size, the contract can be written to specify a fee not to exceed an amount equal to the printing and postage costs of the survey. The HR.A, at the December 8, 1988 meeting, will discuss funding up to $10,000 of the study costs. The City Council could be responsible for costs beyond $10,000. We will report to the City Council the results of the HRA action regarding funding this study. Patricia McCullough and Mary Whelan from Health Planning will be present at the meeting to answer questions. Attachments: Senior Housing Study Outline Proposed Letter of Agreement (Contract) City of Lakeville Study Proposal from Health Planning and Management Resources, Inc. BD/dn M-88-367 n 0 SENIOR HOUSING STUDY GOAL: To detenaine the demand and housing preference of low to moderate income seniors (including persons aged 55 and over) for senior housing OBJECTIVES: 1. To determine demographic characteristics a. Number of households b. Persons/household c. Housing type d. Housing cost e. Age f. Income/occupation g. Health status/special needs 2. To determine willingness to live in "assisted" housing 3. To determine willingness to live in Fridley or elsewhere 4. To determine housing type preference 5. To conduct a brief inventory of service needs 6. To maintain data base in format which can easily be updated 7. To evaluate the impact of other senior housing projects in the immediate area. STUDY METHOD: Health Planning and Management Resources, Inc. will use the following 'tools to accomplish the study objectives: 1. Analyze existing demographic data 2. Conduct a mail survey to Fridley residents aged 55 and over 3. Conduct up to two focus group sessions STUDY RESULTS: • 1. The consultant will prepare a written report interpreting the results of both the mail survey and focus groups. 2. Data generated from the study will be on a computer file. 3. The consultant will present the findings of the study to the HRA and City Council. . ESTIMATED COST: Study - $ 7,500 2 focus groups - 1,000 Printing & postage - 2,000-4,000 TOT,AL $10,500-12,500 Health Planning & Management Resources, inc. LETTER OF AGREEMENT HEALTH PLANNING & MANAGEMENT RESOURCES, INC. _ AND THE CITY OF FRIDLEY, MINNESOTA Health Planning 8� Management Resources, inc. (HP8�MR) agrees to perform the work defined in Proposal for Consulting Assistance for thg C� of Frid�ev, Minnesota, dated December 2, 1988. All work performed by HP&MR is the property of the City of Fridley and can be used in any manner desired after completion of the consulting engagement. This includes the survey instrument that is used. Fees for performing the work will be $8,500 and paid according to the fo{{owing schedule: Initiation of contract Completion of Phase I Mailing of survey & focus group completion Completion of final plan $2,000.00 $2, 500.00 $2, 500.00 $1, 500.00 Expenses will be billed as incurred and include postage, printing of survey and envelopes for mailing, computer analysis, mileage at $.30 per mile, and duplicating of reports. The postage will be directly dependent on the number of pieces of mail that are sent for the survey. Other expenses are anticipated not to exceed $600.00, assuming that a maximum of 8 copies of all reports are delivered. Patricia A. McCullough Health Planning & Management Resources, Inc. William Burns, City Manager City of Fridley Prime Professional Center 4970 Uncoln Drive Edina, Minnesota 55436 612-935-6077 Date Date � � � 874T - 208th St. P.O. Box 957 Dear Friends, Cit of Lakeville Y Lakeville, Minnesota 55044-8012 (612) 469-4431 The Dakota County Housing and Redevelopment Authority has been requested by the �ity of Lakeviile to pursue the development of senior retirement F�ousing in Downtown Lakeville. The site for the planned housing will be one block west of City Hall, north of Upper 208th Street and one block west of Holyoke Avenue. As part of the planning process, we feel it is necessary to survey area residents to get feedback regarding housing needs and preferences of senior citizens. The enclosed survey contains a variety of questions related to the design and development of senior retirement housing. In addition, other questions attempt to identify.the level of interest among area residents in the planned retirement housing in Downtown Lakeville. Your response is important to our results whether or not you are interested in retirement housing. After you have completed the survey, please return it in the addressed, postage paid envelope we have enclosed. Your survey will be sent to a market research firm that is analyzing the results. If you desire, you may fill in your name on the final page. This is totally optional. If you include your name, you will be put on a mailing list for announcements and progress reports on the retirement housing development. Your response on the survey witl be kept confidential, and your name will not be included in the survey results. Thank you for your help. Si rely, uane Zaun, ayor ity of Lakeville SENIOR RETIREMENT HOUSING SURVEY 1. What is your zip code? 2. How old are you? Are you: (1) Male (2) 3. Are you: (1) Married (2) Single (3) Widowed 4. Please list the age and sex of any additional persons living with.you. Age Sex Age �2� �4� Female Sex 5. Are you currently: (1) Retired (2) Worki�g fult-time (3) Working part-time 6. Where are you currently living? (1) In a house you own (2) In an apartment with rent based on your income (3) (4) � 7. Do you drive a car? (1) Yes (2) No In an apactment with no special rent programs for lower income Other - please explain How many cars do you own? THE FOLLOWING �UESTIONS ARE ABOU'F SENIOR RETIREMENT HOUSING. WE ARE CONSIDERING HOUSING THAT WOULD NOT BE SUBSIDIZED BY THE GOVERNMENT AND WOULD NOT BE LtMITED TO LOW INCOME FOR ENTRANCE. TO ASSIST 1N OUR PLANNING, WE ARE INTERESTED IN YOUR OPINION REGARDING THE TYPE OF SERVICES AND FEATURES THAT SHOULD BE AVAILABLE IN HOUSING FOR SENIORS. 8. Please circle how important it would be for you to have the following special features included in senior retirement housing Not Don't � nti I ir Im ortant Know 1) Garage parking 4 3 2 1 2 Laundry rooms on each floor 4 3 2 1 3 Laundry facilities in each apartment 4 3 2 - 1 4 Security system 4 3 2 1 (5) Space for outdoor gardening 4 3 2 1 (6) Extra stora e outside of apartment 4 3 2 1 �) Workshop%�craft rooms 4 3 2 1 ) Outdoor activity areas 4 3 2 1 (9 Guest room for ovemight family 4 3 2 1 10 Informal lounge areas 4 3 2 1 11 Library 4 3 2 1 12 Bathtub facilities in apartment 4 3 2 1 13 Shower facil'�ies in apartmerrt 4 14 Exercise room/whirlpool 4 15) Community room with kitchen 4 (16) Patios/balconies 4 3 2 1 3 2 1 3 2 1 3 2 1 , � � � � � � � � � � L � � � � � � � � Please circle how important it would be for you to have the following services availabie in senior retirement housing. (1) 24-hour emergency call system (2) Housekeeping serv�ces (3) Laundry services � (4) Daily meal served in dining room 5) Planned activity and social programs 6) Scheduled transportation �; Beauty/barber shop Convenience store (9) Coffee shop (10) Organized volunteer program (11) Health care services, e.g., visiting nurse (12) Assistance with your personal care, e.g., bathing nti I 4 4 4 4 4 4 ir 3 3 3 3 3 3 Not rt nt 2 2 2. 2 2 2 4 3 2 4 3 2 Don't Know 1 1 1 1 1 1 10. The fees that are charged for an apartment are determined by the size of the apartment. Please check the type of living unit you feel you would need to be comfortable should you ever live in senior ret�rement housing. . � (1) One bedroom (3) Two bedroom (2) One bedroom with den (4) Three bedroom or two bedroom with den 11. Please check the response that describes your feelings about the height of an apartment building. (1) One story building (2) Two to three story building (with elevators) (3) Four to five story building (with elevators) (4) Six or more story building (with elevators) Acce t� Not Acce t�able L 1 � � � � � � 12. The site that has been chosen for the planned senior retirement housing is one block west of Holyoke Avenue, north of Upper 208th Street in Downtown Lakeville (one block west of City Hall). Please indicate your level of acceptance of this site. (1) Very acceptable (2) Acceptable (3) Not acceptable (4) Don't know Please give us your comments related to the site. � 13. How much would you be willing/able to pay for monthly fees (which includes all utilities except telephone) for an apartment in a sernor retirement building that had all of the features you desired? $ � � � 14. � � � � � � � THE FOLLOWtNG FOUR QUESTIONS ARE RELATED TO YOUR PRESENT FINANCIAL STATUS. WE ARE ASKING THESE �UESTIONS SO THAT WE CAN DETERMINE WHAT OLDER PERSONS CAN AFFORD TO PAY FOR HOUSING. If you own the housing unit in which you are currently living, what is the approximate fair market value? (1) Up to $34,999 (3) $50,000-$64,999 (5) $80,000-$99,999 (2) $35,000-$49,999 (4) $65,000-$79,999 (6) $100,000 and over 15. What is the approximate annual household income (for all wage eamers in your household) from all sources, including salaries, social security, pensions, and investment income? (1) Up to $9,999 (3) $15,000-$19,999 (5) $25,000-$29,999 (2) $10,000-$14;999 (4) $20,000-$24,999 (6) $30,000 and over 16. What are your approximate total m nth household expenses including mortgage/rent, property taxes, food, home repairs and upkeep and utilities. (1) Up to $249 . (3) $500 to $749 (5) $1,000 to $1,249 (2) $250 to $499 (4) $750 to $999 (6) $1,250 and over L 17. Excluding your home, what are your approximate current financial assets? � (1) Under $5,000 (3) $15,000-$29,999 (5) $50�000-$74,999 (2) $5�000-$14,999 (4) $30,000-$49�999 (6) -� $75,000 and over � � �� 18. What are the primary reasons why you wouid consider moving into retirement housing? � Select 3, indicating your first reason with a"1 "� your second reason with a"2", and your third reason wrth a'3". 19. 20. 21. 1 Personal security 2 Health 3) Eliminate housekeeping/ home maintenance �4 Recreational activities 5; Companionship (6) Other: Would you consider moving into the planned senior retirement apartments in Downtown Lakeville if they included�the features that you desire? (1 Yes, definitely (3) No, not interested (2� Maybe/sometime in the future If you checked 'Yes` or "Maybe/sometime in the future', please answer the following two questions. � Please estimate how long it may be before you would consider moving. (1) Less than 1 year (3) Over 3 years (2) Between 1 to 3 years (4) Don't know, depends on circumstances in my life If you own your home, please check the statement which best describes your situation. (1) (2) (3) I would not move into senior housing until I sell my home. If I am not able to sell my home, I could move into senior housing while it is still up for sale. � Other (Please explain): Please feel free to expand on any of your answers above, or include any comments you have about the need for housing for senior at�zens in our local community. If you would like to be kept informed of the progress in our pianning, please give us your name and address. Name Address THANK YOU FOR YOUR TIME AND FOR SHARING YOUR OPINION