Res 1997-36 RESOLUTION NO. 36 - 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, 14 AND 15 TO
REFLECT INCREASED PROJECT AREA AND INCREASED PROJECT
COSTS WITHIN REDEVELOPMENT PROJECT NO. 1, AND CREATING
TAX INCREMENT FINANCING DISTRICT NO. 16 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 area and 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
and 15 (the "Existing TIF Districts") to reflect increased project area
and 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. 16 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 area and increased project costs within Redevelopment Project
No. 1 and a proposed Tax Increment Financing Plan for proposed Tax
Increment Financing District No. 16, 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.
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 area and increased project
(may
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Page 2 -- Resolution No. 36 - 1997
costs within Redevelopment Project No. 1 and to create proposed Tax
Increment Financing District No. 16 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. 16, 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. 16 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. 16, 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
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Page 3 -- Resolution No. 36 - 1997
2.08. 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 modifications to the Redevelopment Plan relating to
Redevelopment Project No. 1 reflecting increased project area and
increased project costs are 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 area and 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. 16
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 Tax Increment
Financing District No. 16, 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.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY THIS 28TH DAY OF APRIL,
1997 .
N NC JOR N ON 1 OR
ATTEST:
OtU.WILLIAM A. CHAMPA - CITY
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Page 4 -- Resolution No. 36 - 1997
EXHIBIT A
The reasons and facts supporting the findings for the Tax Increment
Financing Plan (the "TIF Plan") for Tax Increment Financing District No.
16 (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 five parcels of land which qualify as a
"redevelopment district" under Minnesota Statutes, Section 469. 174,
Subdivision 10.
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 renovation of
"Dick' s Tire" to a Goodyear Tire and Service Center. The current
facility is outdated, in substandard condition, and in need of
renovation, including roof, floors, ceilings and electrical and
mechanical systems. Contemporaneously, a new retail center will be
constructed on adjacent property consisting of two parcels with houses
to be acquired and demolished and a vacant lot. The redeveloper could
not proceed without TIF Assistance as it is not economically feasible to
do so. City staff has determined that the increased market value
realized from a project receiving no TIF Assistance would be less than
the increased market value (less the present value of tax increment
receipts) from a project utilizing TIF Assistance (see attached Schedule
1) .
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 (rehabilitation of existing 8, 640 square foot Dick's Tire
facility and construction of 7, 980 square foot retail center) is located
within the proposed TIF District and could potentially provide
approximately 15 to 20 additional employment opportunities. In
addition, the project will increase the City's tax base by approx.
$524, 400.
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Page 5 -- Resolution No. 36 - 1997
SCHEDULE 1 TO EXHIBIT A
I. REDEVELOPMENT WITHOUT TIF ASSISTANCE:
The TIF District includes two small
vacant parcels, two single family
residences and an 8, 640 square foot
vacant commercial building. Under
this scenario only the commercial
building would be rehabilitated.
Estimated Market Value $ 564, 900
Original Market Value $ 426, 300
Increased Market Value $ 138, 600
II . REDEVELOPMENT WITH TIF ASSISTANCE:
The TIF District includes the same two
vacant parcels, two single family
residences and 8, 640 square foot vacant
commercial building. Under this scenario
a new 7, 800 square foot commercial center
would be constructed in addition to the
rehabilitation of the vacant commercial
building.
Estimated Market Value $ 950, 700
Original Market Value $ 426, 300
Increased Market Value $ 524, 400
Less Present Value of the Tax Increment
Generated @ 8 .50%, 26 tax increment years
(See attached Exhibit 1) $ 262, 000
Net Increased Market Value $ 262, 400