RES 1995-92A - 00002980154
RESOLUTION NO. 92A - 1995
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT 140. 1 AND THE TAR INCREMENT
FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS
NOS. 1, 2, 3, 6, 7, 9, 10, 11, 12, AND 13 TO REFLECT
INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT
NO. 1, AND CREATING TAR INCREMENT FINANCING DISTRICT
NO. 14 AND ADOPTING A TAR INCREMENT FINANCING PLAN
RELATING 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 by the Housing & Redevelopment Authority (the
"Authority ") that the City Council modify, approve, and adopt a Modified
Redevelopment Plan relating to Redevelopment Project No. 1 to reflect
increased project costs, 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 by the Authority that the City Council
modify, approve, and adopt Modified Tax Increment Financing Plans for
Tax Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9, 10, 11, 12, and
13 (the "Existing TIF Districts ") 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 by the Authority that the City Council
create proposed Tax Increment Financing District No. 14 and approve and
adopt a 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 City Council has
investigated the facts with respect thereto, a Modified Redevelopment
Plan for Redevelopment Project No. 1 and Modified Tax Increment
Financing Plans for the Existing TIF Districts to reflect increased
project costs within Redevelopment Project No. 1 and a proposed Tax
Increment Financing Plan for proposed Tax Increment Financing District
No. 14, defining more precisely the property to be included, the public
costs to be incurred, and other matters relating thereto.
1.05. The City Council has performed all actions required by law to be
performed prior to the modification, approval, and adoption of the
Modified Redevelopment Plan, the Modified Tax Increment Financing Plans,
and the proposed Tax Increment Financing Plan.
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IPage 2 -- Resolution No. 92A - 1995
1.06. The City Council hereby determines that it is necessary and in the best
interests of the City and the Authority at this time to modify, approve,
and adopt the Modified Redevelopment Plan and the Modified Tax Increment
Financing Plans to reflect increased project costs within Redevelopment
Project No. 1 and to create proposed Tax Increment Financing District
No. 14 and to approve and adopt the proposed Tax Increment Financing
Plan relating thereto.
Section 2. Findings.
2.01. The City 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 City Council hereby finds, determines, and declares that the
Modified Redevelopment Plan, Modified Tax Increment Financing Plans, and
proposed Tax Increment Financing Plan conform 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 City 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 City Council hereby finds, determines, and declares that the
approval and adoption of the Modified Redevelopment Plan for
Redevelopment Project No. 1, the Modified Tax Increment Financing Plans
for the Existing TIF Districts, and the proposed Tax Increment Financing
Plan for proposed Tax Increment Financing District No. 14, by the City
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 Modified Redevelopment Plan, Modified Tax
Increment Financing Plans, and proposed Tax Increment Financing Plan.
2.05. The City Council hereby finds, determines, and declares that proposed
Tax Increment Financing District No. 14 constitutes a "tax increment
financing district" as defined in Minnesota Statutes, Section 469.174,
Subdivision 9, and further constitutes a type of "economic development
' district" as defined in Minnesota Statutes, Section 469.174, Subdivision
12.
1
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Page 3 -- Resolution No. 92A - 1995
2.06. The City Council hereby finds, determines, and declares that the
proposed development or redevelopment in proposed Tax Increment
Financing District No. 14, in the opinion of the City Council, would not
occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment financing is
deemed necessary.
2.07. 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 Modified
Redevelopment Plan, the Modified Tax Increment Financing Plans, and
proposed Tax Increment Financing Plan and Exhibit A of this Resolution.
Section 3. Modification. Approval. and Adoption of Modified Redevelopment
Plan.
3.01. The modification to the Redevelopment Plan relating to Redevelopment
Project No. 1 reflecting increased project costs is hereby approved and
adopted by the City Council of the City of Fridley.
Section 4. Modification. Approval, and Adoption of Modified Tax Increment
Financing Plans.
4.01. The modifications to the Tax Increment Financing Plans for the existing
TIF districts reflecting increased project costs within Redevelopment
Project No. 1 are hereby approved and adopted by the City Council of the
City of Fridley.
Section 5. Creation of Tax Increment Financing District and Adoption of Tax
Increment Financing Plan.
5.01. The creation of proposed Tax Increment Financing District No. 14 within
Redevelopment Project No. 1 and the proposed Tax Increment Financing
Plan relating thereto are hereby approved and adopted by the City
Council of the City of Fridley.
Section 6. Election of City Contribution.
6.01. The City Council hereby elects to make a qualifying local contribution
equal to 10.00% of the tax increment generated from Tax Increment
Financing District No. 14, pursuant to 1995 Minnesota Laws, Chapter 264,
Article 5, Section 6, Subdivision 6(d).
Section 7. Filing
of Plans.
7.01. Upon approval
and adoption of the Modified
Redevelopment Plan, Modified
'
Tax Increment
(collectively
Financing Plans and proposed
the "Plans "), the City shall
Tax Increment Financing Plan
cause said Plans to be filed
with the Commissioner of Revenue.
�I
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Page 4 -- Resolution No. 92A - 1995
PASSED AND ADOPTED BY THE CITY COUNCIL
OF THE CITY OF FRIDLEY THIS
11TH DAY OF
DECEMBER, 1995.
I
CA
WILLIAM J.
MAYOR
I�
ATTEST:
WILLIAM A. CHAMPA - CITYICLERK
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IPage 5 -- Resolution No. 92A - 1995
Exhibit A
The reasons and facts supporting the findings for the Tax Increment Financing
Plan (the "TIF Plan ") for Tax Increment Financing District No. 14 (the "TIF
District ") as required pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3, are as follows:
1. Finding that the TIF District is an "economic development district" as
defined in Minnesota Statutes.
The TIF District consists of two parcels of land which qualify as an "economic
development district" under Minnesota Statutes.
2. 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, therefore, the use of tax
increment financing is deemed necessary.
The site has significant soil correction and utility relocation problems which
have prevented its development to date. Because of these extensive costs, the
Developer is requesting TIF Assistance in order to proceed with the project as
currently proposed. Without TIF Assistance, it is not economically feasible
' to correct the problems on the entire site and to construct the 88,000 square
foot facility. In its current state, the western portion of the site requires
very extensive soil correction work, while the eastern portion requires a
lesser degree of correction work. However, because of the contox-r of the east
end and because of compliance with City building requirements, this portion of
the site could only accommodate an approximate 20,000 square foot facility.
City staff has determined that the increased market value realized from a
project receiving no TIF Assistance would be considerably less than the
increased market value (less the present value of tax increment receipts) from
a project utilizing TIF Assistance (see attached Schedule).
3. Finding that the TIF Plan conforms to the general plan for the
development or redevelopment of the municipality as a whole.
The Authority and the City Council have reviewed the TIF Plan and determined
that it conforms to the future land use plan of the City.
4. Finding that the TIF Plan will afford maximum opportunity, consistent
with the sound needs of the City as a whole for the development or
redevelopment of Redevelopment Project No. 1 by private enterprise.
The project to be developed (an approximate 88,000 square foot
office /manufacturing /warehouse facility) is located within the proposed TIF
District and will provide approximately 80 to 150 additional employment
opportunities. In addition, the project will increase the City's tax base by
' approximately $1,984,664.
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' Page 6 -- Resolution No. 92A - 1995
Schedule 1 to Exhibit A
I. Redevelopment without TIF Assistance:
Estimated Market Value *
$ 674,260
Original Market Value
$ 223,200
Increased Market Value
$ 451,060
* 20,000 square feet of building only @
$22.553 /square foot plus
current market value of land
II. Redevelopment with TIF Assistance:
Construction of an office /manufacturing /warehouse facility
Estimated Market Value *
$2,521,564
Original Market Value
$ 536,900
Increased Market Value
$1,984,664
'
Less Tax Increment Present Value
$ 351,639
8.508, 11.5 years
Net Increased Market Value
$1,633,025
* 88,000 square feet of building only @
$22.553 /square foot plus
current market value of land