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RES 2010-99 - 14779RESOLUTION NO. 2010 - 99 RESOLUTION APPROVING AND ADOPTING A RESTATED HOUSING REPLACEMENT DISTRICT PLAN FOR HOUSING REPLACEMENT DISTRICT NO. 1 INCLUDING PHASES I -IV AND APPROVING AND ADOPTING PHASE V FOR 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 Restated Housing Replacement District Plan (the "Plan ") and adopt Phase V to Housing Replacement District No. 1 (the "District "), pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1799, inclusive, as amended and supplemented. This proposal is also pursuant to the original statutory authority provided by Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47 in which the Housing Replacement District Plan was originally approved and Housing Replacement District No. 1 was created. This original statutory authority was amended by Laws of Minnesota 1996, chapter 471, article 7, section 22, and Laws of Minnesota 1997, chapter 231, article 10, section 13, and Laws of Minnesota 2002, chapter 377, article 7, section 6, and Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota 2010, Chapter 216, Section 42. 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 Phase V to the District. 1.03. 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 Phase V to the District to achieve the City's and Authority's goal of acquiring blighted, undeveloped or underdeveloped parcels for redevelopment, rehabilitation and 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. Resolution No. 2010 -99 Page 2 2.03. The City Council hereby finds, determines, and declares that the Plan affords maximum opportunity consistent with the sound 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 ofthe Plan and Phases V to the District is intended and, in the judgment of this Authority, its effect will be to promote the public purposes and objectives specified in the Plan. Section 3. Annroval and Adobtion of the Plan. 3.01. The Restated Housing Replacement District Plan for Housing Replacement District No. 1 including Phases I -IV is hereby approved and adopted by the City Council of the City of Fridley. Section 4. Modification of the District. 4.01. Phase V to Housing Replacement District No. 1 is hereby approved and adopted 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, the Office of State Auditor and Anoka County. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 13TH DAY OF DECEMBER, 2010. � A f . SCOTT J. LUND, MAYOR ATTEST: DEBRA A. SKOG6N, CITY CLERK Resolution No. 2010 -99 EXHIBIT A Page 3 The reasons and facts supporting the findings for the proposed Restated Housing Replacement District Plan or Plan for Housing Replacement District No. 1 and the inclusion of Phase V and subsequent Phases 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(s) 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 in Phase V and subsequent phases 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 attached to this Exhibit and Exhibit I -A attached to the Plan. 2. Finding that the Restated 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 Restated 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 Restated 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. Resolution No. 2010 -99 SCBEDULE I Page 4 Because the private sector cannot economically develop or redevelop the parcels in Phase V and subsequent phases, 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. Phase V Subsequent Phases Estimated Market Value $100,000 $3,800,000 Less Original Market Value ($100,000) ($3,800,000) Increased Market Value $-0- $ -0- With tax increment assistance it is anticipated that the parcels in Phase V and subsequent phases will be acquired and any existing houses either rehabilitated or demolished and new housing constructed. Phase V Subsequent Phases Estimated Market Value $400,000 $15,200,000 Less Original Market Value $100,000 $3,800,000 Less Tax Increment PV $43,739 $1,662,097 Net Increased Market Value $256,261 $9,737,903 MMB: 4817 - 0527 -1560, v. 1