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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 2 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. 3 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: / W/1 � ✓i u• I r• • f a• 4 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.