RES 1995-66 - 0000292496
RESOLUTION NO. 66 - 1995
' RESOLUTION APPROVING AND ADOPTING A HOUSING
REPLACEMENT DISTRICT PLAN AND CREATING HOUSING
REPLACEMENT DISTRICT NO. 1
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 by the Housing and Redevelopment Authority in and
for the City of Fridley (the "Authority ") that the City Council approve
and adopt a Housing Replacement District Plan (the "Plan") and create
Housing Replacement District No. 1 (the "District "), pursuant to and in
accordance with Laws of Minnesota 1995, Chapter 264, Article 5, Sections
44 through 47, inclusive, as amended and supplemented from time to time.
1.02. The City Council has performed all actions required by law to be
performed prior to the approval and adoption of the Plan and the
creation of the District.
1.03. The City Council has approved its Resolution No. 43 - 1995, A Resolution
Approving the Special Laws Authorizing the Creation and the
Implementation of a Housing Replacement Program.
' 1.04. The City Council has determined that it is necessary and in the best
interests of the City and the Authority at this time to approve and
adopt the Plan and create the District to achieve the City's and
Authority's goal of acquiring blighted, undeveloped, or underdeveloped
parcels for redevelopment or rehabilitation, and for resale as market
rate housing.
Section 2. Findings,
2.01. The City Council hereby finds, determines, and declares that the
adoption and implementation of the Plan is necessary to assure the
development and redevelopment of market rate housing within the City.
2.02. The City Council hereby finds, determines, and declares that the Plan
conforms to the Comprehensive Plan of the City for the development and
redevelopment of the City as a whole.
2.03. The City Council hereby finds, determines, and declares that the Plan
affords maximum opportunity consistent with the needs of the City as a
whole for development and redevelopment within the District by private
enterprise.
2.04. The City Council hereby finds, determines, and declares that the
approval and adoption of the Plan and
the creation of the
District is
intended and, in the judgement of this
City 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 Plan.
it
97
Page 2 -- Resolution No. 66 - 1995
2.05. The City 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 Plan and
Exhibit A of this Resolution.
Section 3. Adoption and Approval of the Plan.
3.01. The Housing Replacement District Plan is hereby approved and adopted by
the City Council of the City of Fridley.
Section 4. Creation of the District.
4.01. Housing Replacement District No. 1 is hereby created by the City Council
of the City of Fridley.
Section 5. Filing of Plan.
5.01. Upon approval and adoption of the Plan, the City shall cause said Plan
to be filed with the Minnesota Department of Revenue.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD DAY OF
OCTOBER, 1995.
ATTEST:
wW4'j� 9 Y-'Z4
WILLIAM J. NEE - MAYOR
IPage 3 -- Resolution No. 66 - 1995
Ixti,1i:16dFA
The reasons and facts supporting the findings for the proposed Housing
Replacement District Plan for Housing Replacement District No. 1 as required
pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as
follows:
1. Finding that the proposed development or redevelopment, in the opinion
of the City Council, would not occur solely through private investment
within the reasonably foreseeable future and that the increased market
value of the site that could reasonably be expected to occur without the
use of tax increment financing would be less than the increase in the
market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the
maximum duration of the district permitted by the Plan.
These properties are vacant or contain vacant structures or blighted
structures. The costs of acquisition, demolition, and site preparation
of these sites exceeds their market values as buildable sites. See
Schedule 1.
2. Finding that the proposed Housing Replacement District Plan conforms to
the general plan for the development and redevelopment of the City as a
whole.
The Authority and the City have reviewed the proposed Housing
Replacement District Plan and have determined that it conforms to the
general plan for the development and redevelopment of the City.
3. Finding that the proposed Housing Replacement District Plan affords
maximum opportunity consistent with the sound needs of the City as a
whole for development and redevelopment within Housing Replacement
District No. 1 by private enterprise.
The City is attempting to have undeveloped, underdeveloped, and blighted
properties converted into buildable sites for moderately priced single
family housing. The Housing Replacement District Plan helps achieve
this housing and planning goal by offering these sites to private
developers for the construction of single family homes. These new homes
will greatly increase the market value of the individual sites and will
help prevent the spread of blighting influences in the neighborhoods in
which they are located.
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' Page 4 -- Resolution No. 66 - 1995
SCHEDULE 1
Because the private sector cannot
economically develop or redevelop these
parcels, it is assumed that they
will remain in their current condition. As a
result, there would be no increase
in the market value without the use of tax
increment assistance.
Estimated Market Value
$160,100
Less Original Market Value
($160,100)
Increased Market Value
$ - 0 - -
With tax increment assistance it
is anticipated that these parcels will be
acquired and existing houses either
rehabilitated or demolished and rebuilt.
Estimated Market Value
$585,000
Less Original Market Value
($160,100)
Increased Market Value
$424,900
Less Tax Increment PV
($ 52,268)
Net Increased Market Value
$372,632
1