Res 1997-33 00044
RESOLUTION NO. 33 - 1997
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 AND 14 TO REFLECT
INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT NO.
1, AND CREATING TAX INCREMENT FINANCING DISTRICT NO. 15
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
and 14 (the "Existing TIF Districts") 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 by the Authority that the Council
create proposed Tax Increment Financing District No. 15 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. 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 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 proposed Tax Increment
Financing District No. 15, defining 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.
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Page 2 -- Resolution No. 33 - 1997
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 proposed Tax Increment
Financing District No. 15 and to approve and adopt the proposed Tax
Increment Financing Plan relating thereto.
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 proposed Tax Increment Financing District No. 15,
by the City 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 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. 15 constitutes a "tax increment
financing district" as defined in Minnesota Statutes, Section 469. 174,
Subdivision 9, and further constitutes a type of "economic development
district" as defined in Minnesota Statutes, Section 469. 174,
Subdivision 12 .
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Page 3 -- Resolution No. 33 - 1997
2 . 06. The Council hereby finds, determines and declares that the
proposed development or redevelopment in proposed Tax Increment
Financing District No. 15, 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.
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.
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 proposed Tax Increment Financing District No.
15 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 10 . 00% of the tax increment generated from Tax
Increment Financing District No. 15, as set forth in Minnesota
Statutes 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.
0C C'mil
Page 4 -- Resolution No. 33 - 1997
I
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
28TH DAY OF APRIL, 1997 .
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N NCY` RGlie -
MAYOR
ATTEST:
DILI. O . (1/Yrk,
WILLIAM A. CHAMPA - CITY f CLERK
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Page 5 -- Resolution No. 33 - 1997 �C�1�
EXHIBIT A
The reasons and facts supporting the findings for the Tax Increment
Financing Plan (the "TIF Plan") for Tax Increment Financing District
No. 15 (the "TIF District") as required pursuant to Minnesota
Statutes, Section 469. 175, Subdivision 3, are as follows:
1. Finding that the TIF District is an "economic development
district" as defined in Minnesota Statutes.
The TIF District consists of two parcels of land which qualify as an
"economic development district" under Minnesota Statutes, Section
469. 174, Subdivision 12 .
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 and site
preparation for the construction of a warehousing and transloading
facility. Because of the substantial costs of acquisition, public
improvements, soil correction and preparation of the site for unusual
weight bearing supports, 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.
The project to be developed (an approximate 57, 980 square foot
warehousing and transloading facility) is located within the proposed
TIF District and is estimated to provide approximately 24 new
employment opportunities within five years. In addition, the project
will increase the City's tax base by approximately $854, 700.
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Page 6 -- Resolution No. 33 - 1997
SCHEDULE 1 TO EXHIBIT A
I . REDEVELOPMENT WITHOUT TIF ASSISTANCE:
With 25% coverage of land by building,
an approximate 43, 560 square foot building
could be constructed.
Estimated Market Value for Sales
Transaction @ $35. 00/square foot $ 1, 524, 600
Original Market Value $ 304, 900
Increased Market Value $ 1, 291, 700
II. REDEVELOPMENT WITH TIF ASSISTANCE:
With 33% coverage of land by building,
an approximate 57, 980 square foot building
could be constructed. Because the tax
increment assistance will finance extensive
site corrections, a larger building can be
constructed.
Estimated Market Value for Sales
Transaction @ $35. 00/square foot $ 2, 029, 300
Original Market Value $ 304, 900
Increased Market Value $ 1, 724, 400
Less Present Value of the Tax Increment
Generated at 8 . 5%, 9 tax increment years
(see attached Exhibit 1) $ 256, 874
Net Increased Market Value $ 1, 467, 526