Res 2000-110 RESOLUTION NO. 110-2000
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT
PROJECT NO. 1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICTS NOS. 1,2,3,6,7, 9, 10, 11, 12, 13, 14, 15 AND 16 TO REFLECT
INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT NO. 1,AND
CREATING TAX INCREMENT FINANCING DISTRICT NO. 17 AND ADOPTING A TAX
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 and Redevelopment Authority(the"Authority")that the 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 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, 13, 14,
15 and 16(the "Existing TIF Districts")to reflect increased project costs within Redevelopment Project No.
1, pursuant to Minnesota Statutes, Section 469.174 through 469.1791, inclusive, as amended and
supplemented from time to time.
1.03. It has been further proposed by the Authority that the Council create proposed Tax Increment
Financing District No. 17 (the"Proposed TIF District")and approve and adopt a proposed Tax Increment
Financing Plan relating thereto,pursuant to and in accordance with Minnesota Statutes, Section 469.174 to
469.1791,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 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 the Proposed TIF District, defming more precisely
the property to be included,the public costs to be incurred, and other matters relating thereto.
1.05. The 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.
Page 2 -Resolution No. 110-2000
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 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 the Proposed TIF District and approve and adopt the proposed Tax Increment Financing Plan relating
thereto.
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Resolution No. 110-2000 Page 2
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 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 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,the Modified Tax Increment Financing Plans for the
Existing TIF Districts and the proposed Tax Increment Financing Plan for the Proposed TIF District 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 the Proposed TIF District 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 the Proposed TIF District, in the opinion of this 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 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,the 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 Council of the City of Fridley.
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Resolution No. 110-2000 Page 3
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 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 the Proposed TIF District 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. Election of City Contribution.
6.01. The Council hereby elects to make a qualifying local contribution equal to 5.00%of the tax increment
generated from the Proposed TIF District, as set forth in Minnesota Statutes, Section 273.1399.
Section 7. Filing of Plans.
7.01. Upon approval and adoption of the Modified Redevelopment Plan,Modified Tax Increment Financing
Plans and 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 COUNCIL OF THE CITY THIS 11TH DAY OF DECEMBER,2000.
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c. . SON-MAYOR
ATTEST:
6)4
DEBRA SKOG N-Cl/IrIERK
CERTIFICATION
I,Debra Skogen,the duly qualified Clerk of the City of Fridley,County of Anoka,Minnesota,hereby certify
that the foregoing is a true and correct copy of Resolution No. passed by the City Council on the
11th day of December,2000.
DEBRA SKOGEN-CITY CLERK
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Resolution No. 110-2000 Page 4
EXHIBIT A
The reasons and facts supporting the findings for the Tax Increment Financing Plan(the"TIF Plan")for Tax
Increment Financing District No. 17(the"TIF District")as required pursuant to Minnesota Statutes, Section
469.175, Subdivision 3, are as follows:
1. Finding that the TIF District is a"redevelopment district" as defined in Minnesota Statutes.
The TIF District consists of nine parcels of land which qualify as a"redevelopment district"under Minnesota
Statutes, Section 469.174,subd. 10. Parcels comprising at least 70 percent of the area of the TIF District are
occupied by improvements. All buildings located within the TIF District were deemed blighted, as
evidenced by reports on file with the Authority.
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.
The redevelopment project consists of the acquisition,relocation,remediation,utility and street relocation
and site preparation for the construction of a 28 unit, owner-occupied townhouse facility. Because of the
substantial costs of acquisition,demolition,remediation,public improvements,and site preparation,it would
not be economically feasible for the redeveloper to proceed with this project without the Authority's
assistance.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 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.
Development of the townhouse facility will improve the currently underutilized property that is located in
a highly visible area of the City along University Avenue and will provide a buffer between existing
commercial and single-family, residential areas within the neighborhood. In addition, the project will
increase the City's tax base by approximately$4,000,000.
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Resolution No. 110-2000 Page 5
Exhibit A
REDEVELOPMENT WITHOUT TIF ASSISTANCE
The TIF District includes nine parcels. Due to their
size and zoning several parcels would have to be
combined to create buildable sites. Under this
scenario, four duplex units and one small
commercial building(7,500 square feet)could
be constructed.
Estimated Market Value $1,262,000
Original Market Value $501,578
Increased Market Value $760,422
II. REDEVELOPMENT WITH TIF ASSISTANCE
The TIF District includes the same nine parcels,
all of which would be combined and re-platted into
a single development site. Under this scenario
twenty-eight new units of owner-occupied housing
could be constructed with a projected market
value of$4,480,000.
Estimated Market Value $4,480,000
Original Market Value $501,578
Increased Market Value $3,978,422
Less Present Value of the Tax Increment
Generated at 7.50%for 25 tax increment
Years. (See attached Exhibit 1) $715,645
Net Increased Market Value $3,262,777
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