RES 1992-01 - 000033311
RESOLMON .
RESOLUTION MDDIFYM THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1 TO REFLECT nczamm
GEOGRAPHIC AREA AND INaREASED PROIECT COSTS AM
MODIFYING Tr v X INCREMENT FI r• / t FOR TAX
INCREMENT FI r• / DISTRICTS W. 1 THROUGH • 11 TO
REEMECT INCREASED ••• 7 COSTS WITHIN REDEVELOPMENT
• •d ] • U FBMUMaSHING, PROPOSED TAX / 'M• 71 171
FINANCING DISTRICT NO. 12 AND APPROVING AND ADOPTIM THE
PROPOSED YTAX INCREMENT F/ /• / 71 / - G THERETO
BE IT RESOLVED by the City Council (the "Council ") of the City of Fridley,
Minnesota (the "City "), as follows:
Section 1. Recitals
1.01. It has been proposed and approved by the Housing and Redevelopment
Authority (the " Authority ") that the Council modify the Modified Redevelopment
Plan for Redevelopment Project No. 1 to reflect increased project costs and
increased geographic area, pursuant to and in accordance with Minnesota
Statutes, Sections 469.001 to 469.047, inclusive, as amended and supplemented
from time to time.
1.02. It has been further proposed and approved by the Authority that the
Council modify the Modified Tax Increment Financing Plans for Tax Increment
' Financing Districts No. 1 through No. 11 to reflect increased project costs
within Redevelopment Project No. 1, pursuant to Minnesota Statutes, Section
469.174 through 469. 179, inclusive, as amended and supplemented from time to
time.
1.03. It has been further proposed and approved by the Authority that the
Council approve the establishment of proposed Tax Increment Financing District
No. 12 and approve and adopt the proposed Tax Increment Financing Plan relating
thereto pursuant to and in accordance with Minnesota Statutes, Section 469.174
to 469. 179, inclusive, as amended and supplemented from time to time.
1.04. The Authority has caused to be prepared, and this Council has investigated
the facts with respect thereto, a Modified Redevelopment Plan for Redevelopment
Project No. 1 to reflect increased project costs and increased geographic area;
Modified Tax Increment Financing Plans for Tax Increment Financing Districts No.
1 through No. 11 to reflect increased project costs and geographic area within
Redevelopment Project No. 1; and a proposed Tax Increment Financing Plan for
proposed Tax Increment Financing District No. 12, defining more precisely the
property to be included, the public costs to be incurred and other matters
relating thereto.
1.05. The Authority and
to be performed prior t o
Plan for Redevelopment
Plans for Tax Incremen
I proposed Tax Increment
District No. 12.
the Council have performed all actions required by law
the approval and adoption of the Modified Redevelopment
Project No. 1, of the Modified Tax Increment Financing
t Financing Districts No. 1 through No. 11, and of the
Financing Plan for proposed Tax Increment Financing
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Page 2 — Resolution No. 1 -1992
' 1.06. The Council hereby determines that it is necessary and in the best
interests of the City and the Authority at this time to approve and adopt the
Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased
project costs and increased geographic area; to approve and adopt the Modified
Tax Increment Financing Plans for Tax Increment Financing Districts No. 1
through No. 11 to reflect increased project costs within Redevelopment Project
No. 1; and to approve and adopt the proposed Tax Increment Financing Plan for
proposed Tax Increment Financing District No. 12.
Section 2. Findings
2.01. The Council hereby finds, determines, and declares that the assistance to
be provided through the adoption and implementation of the Modified
Redevelopment Plan, Modified Tax Increment Financing Plans, and proposed Tax
Increment Financing Plan are necessary to assure the development and
redevelopment of Redevelopment Project No. 1.
2.02. The Council hereby finds, determines, and declares that the Modified
Redevelopment Plan, Modified Tax Increment Financing Plans, and proposed Tax
Increment Financing Plan conforms to the general plan for the development and
redevelopment of the City as a whole in that they are consistent with the City's
comprehensive plan.
2.03. The Council hereby finds, determines, and declares that the Modified
' Redevelopment Plan, Modified Tax Increment Financing Plans, and proposed Tax
Increment Financing Plan afford maximum opportunity consistent with the sound
needs of the City as a whole for the development and redevelopment of
Redevelopment Project No. 1 by private enterprise and it is contemplated that
the development and redevelopment thereof will be carried out pursuant to
redevelopment contracts with private developers.
2.04. The Council hereby finds, determines, and declares that the approval and
adoption of the Modified Redevelopment Plan for Redevelopment Project No. 1; of
the Modified Tax Increment Financing Plans for Tax Increment Financing Districts
No. 1 through No. 11; and of the Tax Increment Financing Plan for Tax Increment
Financing District No. 12 by the City is intended and, in the judgement of this
Council, its effect will be to promote the purposes and objectives specified in
this Section 2 and otherwise promote certain public purposes and accomplish
certain objectives as specified in the Modified Redevelopment Plan, Modified Tax
Increment Financing Plans, and proposed Tax Increment Financing Plan.
2.05. The Council hereby finds, determines, and declares that proposed Tax
Increment Financing District No. 12 constitutes a "tax increment financing
district" as defined in Minnesota Statutes, Section 469.174, Subdivision 9, and
further constitutes a type of "redevelopment district" as defined in Minnesota
Statutes, Section 469.174, Subdivision 10.
2.06. The Council hereby finds, determines, and declares that the proposed
development or redevelopment in proposed Tax Increment Financing District No.
' 12, in the opinion of the Council, would not occur solely through private
investment within the reasonably foreseeable future and, therefore, the use of
tax increment financing is deemed necessary.
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Page 3 — Resolution No. 1 - 1992
1 2.07. The Council hereby finds, determines, and declares that the City made the
above findings stated in this Section 2 and has set forth the reasons and
supporting facts for each determination in the Modified Redevelopment Plan, the
Modified Tax Increment Financing Plans, and proposed Tax Increment Financing
Plan and Exhibit A of this Resolution.
Section 3. Modification of the Modified Redevelopment Plan for
Redevelopment Project No. 1
3.01. The modification of the Modified Redevelopment Plan for Redevelopment
Project No. 1 to reflect increased project costs and increased geographic area
is hereby approved and adopted by the Council of the City of Fridley.
Section 4. Modification of the Modified Tax Increment Financing Plans for
Tax Increment Financing Districts No. 1 through No. 11
4.01. The modifications of the Modified Tax Increment Financing Plans for Tax
Increment Financing Districts No. 1 through No. 11 to reflect increased project
costs within Redevelopment District No. 1 are hereby approved and adopted by the
Council of the City of Fridley.
Section 5. Approval of the Tax Increment Financing Plan and Establishment
of Proposed Tax Increment Financing District No. 12
' 5.01. The establishment of proposed Tax Increment Financing District No. 12
within Redevelopment Project No. 1 and the proposed Tax Increment Financing Plan
relating thereto are hereby approved and adopted by the Council of the City of
Fridley.
Section 6. Filing of Plans
6.01. Upon approval and adoption of the Modified Redevelopment Plan, the
Modified Tax Increment Financing Plans and the proposed Tax Increment Financing
Plan (collectively the "Plans "), the City shall cause said Plans to be filed
with the Commissioner of Revenue.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 6TH DAY OF
JANUARY, 1992.
21 i ••
ATTEST:
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EXHIBIT A TO FdWTI CK M. 1 - 1992
The reasons and facts supporting the findings for the proposed Tax Increment
Financing Plan for proposed Tax Increment Financing District No. 12 as required
pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows:
1. Finding that proposed Tax Increment Financing District No. 12 is a
"redevelopment district" as defined in Minnesota Statutes, Section 469.174,
Subdivision 10.
Proposed Tax Increment Financing District No. 12 consists of four parcels of
land which qualify as a redevelopment district under Minnesota Statutes, Section
469.174, Subdivision 10. The district contains a structure of approximately
135,000 square feet. The structure was previously used by Totino's Pizza for
the manufacture of its food products. This facility was closed months ago and
substantial effort has been made to sell the building. The building is
essentially a single purpose building with numerous partitions. It has seven
different ceiling heights and was expanded several times as Totino's business
expanded. The building needs extensive repair and reconstruction to make it
usable. The developer (McGlynn Bakeries, Inc.) has estimated the rehabilitation
costs to be approximately $4, 800,000 which is substantially more than the
present value of the building.
2. Finding that the proposed development or redevelopment, in the opinion of
the Council, would not occur solely through private investment within the
reasonably foreseeable future and, therefore, the use of tax increment financing
is deemed necessary.
City staff has reviewed the available costs for the development including the
costs of rehabilitating the existing structure. Due to these high costs, the
prof ect would not proceed in the reasonably foreseeable future without the
City's assistance.
3. Finding that the proposed Tax Increment Financing Plan conforms to the
general plan for the development or redevelopment of the municipality as a
whole.
The Planning Commission of the City of Fridley has reviewed the proposed Tax
Increment Financing Plan for proposed Tax Increment Financing District No. 12
and has determined that the proposed Tax Increment Financing Plan for proposed
Tax Increment Financing District No. 12 conforms to the comprehensive plan of
the City.
4. Finding that the proposed
Increment Financing District No.
with the sound needs of the City
of Redevelopment Project No. 1
developed (industrial /commercial
' Increment Financing District No.
Exhibit A to Resolution No. 1 -
The rehabilitation will elimina
toTax Increment Financing Plan for proposed Tax
12 will afford maximum opportunity, consistent
as a whole for the development or redevelopment
by private enterprise. The project to be
facility) will be located within proposed Tax
12 and will consist of the
1992 rehabilitation of the existing building.
a blighted influence, increase the tax base
5
Page 2 — Exhibit A to Resolution No. 1 - 1992
by approximately $2,000,000 in market value, and provide additional job
opportunities. This project will enable the State of Minnesota to preserve or
retain 314 jobs and create 116 new jobs for McGlynn. The City of Fridley can
anticipate 200 jobs within the initial opening of the rehabilitated facility.
When McGlynn has fully completed its first phase of setting up its production
for retail outlets, the number of employees should increase to approximately
250. In addition, there should be an annual increase of 5 to 10 positions at
the Fridley facility with the potential of adding another 200 jobs.