Res 1997-103 CU 79
RESOLUTION NO. 103 - 1997
A RESOLUTION AMENDING THE HOUSING REPLACEMENT
DISTRICT PLAN FOR HOUSING REPLACEMENT DISTRICT
NO. 1 TO INCLUDE PHASE II
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 its Housing Replacement District Plan (the "Plan") for
Housing Replacement District No. 1 (the "District") to include Phase
II, 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 II 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
judgment 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.
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Page 2 -- Resolution No. 103 - 1997
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.
Section 3. Approval and Adoption of an Amended Plan.
3.01. The amended Plan reflecting the addition of Phase II 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 COUNCIL OF THE CITY THIS 24TH DAY OF
NOVEMBER, 1997 .
2 CY, / J.!'G', SON - MAYOR
ATTEST: vv
I t. It
Q . L
WILLIAM A. CHAMPA - CIT CLERK
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Page 3 -- Resolution No. 103 - 1997 C�� r
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
II, 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
increment for the maximum duration permitted by the Plan.
The properties located in Phase II 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.
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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 $121, 359
Less Original Market Value ($121, 359)
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 $ 475, 000
Less Original Market Value ($121, 359)
Increased Market Value $353, 641
Less Tax Increment Present Value ($ 40, 505)
(See attached Exhibit 1)
Net Increased Market Value $ 313, 136