Res 2001-23 RESOLUTION NO. 23-2001
A RESOLUTION AMENDING THE HOUSING REPLACEMENT DISTRICT PLAN FOR
HOUSING REPLACEMENT DISTRICT NO. 1 TO INCLUDE PHASE III.
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 Council amend the Housing Replacement District Plan
(the"Plan") for Housing Replacement District No. 1 (the"District")to include Phase III,
pursuant to Laws of Minnesota 1995, Chapter 264,Article 5, Sections 44 through 47,
inclusive, as amended and supplemented from time to time.
1.02. The Council has performed all actions required by law to be performed prior to the approval
and adoption of an amended Plan.
1.03. The Council has determined that it is necessary and in the best interests of the City and the
Authority at this time to amend the Plan for the District to include Phase III in order to
further 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 Council hereby finds,determines, and declares that the adoption and implementation
of the amended Plan is necessary to assure the development and redevelopment of market
rate housing within the City.
2.02. The Council hereby finds,determines, and declares that the amended Plan conforms to the
comprehensive plan of the City for the development and redevelopment of the City as a
whole.
2.03. The 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 Council hereby finds, determines,and declares that the approval and adoption of the
amended Plan 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 Plan.
2.05. 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 Plan and in the attached Exhibit A.
Resolution No. 23-2001 Page 2
Section 3. Approval and Adoption of an Amended Plan.
3.01. The amended Plan reflecting the addition of Phase III is hereby approved and adopted by
the Council of the City of Fridley.
Section 4. Filing of Plans.
4.01. Upon approval and adoption of the amended 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
7TH DAY OF MAY,2001.
.,c . 1_0% .1k
SCO rI. ID - 4 ' YOR
ATTEST:
i
IL Lii//L.
DEBRA A. SKO EN-Cdr Y CLERK
Resolution No. 23-2001 Page 3
EXHIBIT A
The reasons and facts supporting the findings for the amended Plan for the District, as required
pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows:
1. Finding that the proposed development or redevelopment in Phase III,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 sites 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 increment for the maximum duration permitted by the
Plan.
The properties located in Phase III are consistent with the criteria set forth in Section 1.5. of
the Plan. In addition,the costs of acquisition, demolition and site preparation of these
properties exceeds their market values as buildable sites(see Schedule 1).
2. Finding that the amended 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 amended Plan and have determined that it
conforms to the general plan for the development and redevelopment of the city.
3. Finding that the amended Plan affords maximum opportunity consistent with the sound
needs of the City as a whole for development and redevelopment with the District by
private enterprise.
The City is attempting to convert undeveloped,underdeveloped and blighted properties into
buildable sites for moderately priced single family housing. The 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.
Resolution No. 23-2001 Page 4
SCHEDULE 1 TO EXHIBIT A
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(including value of exempt parcels) $321,604
Less Original Market Value(incl.value of exempt parcels) ($321,604)
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 $ 1,225,000
Less Original Market Value ( 243,247)
Increased Market Value 981,753
Less Tax Increment Present Value ( 116,553)
(See attached Exhibit 1)
Net Increased Market Value $ 865,200