Res 2013-27
RESOLUTION NO. 2013-27
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING
PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. NOS. 6-7, 9, 11-13 AND
16-21 TO REFLECT INCREASED GEOGRAPHIC AREA, INCREASED PROJECT
COSTS AND INCREASED BONDING AUTHORITY WITHIN REDEVELOPMENT
PROJECT NO. 1, CREATING TAX INCREMENT FINANCING DISTRICT NO. 22 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 approve and adopt the proposed modifications to its Redevelopment Plan for
Redevelopment Project No. 1 (the “Project Area”) reflecting increased geographic area, increased
project costs and increased bonding authority, pursuant to and in accordance with Laws of
Minnesota 2008, Chapter 154, Article 9, Section 23, Laws of Minnesota 2008, Chapter 366, Article
5, Section 23 and Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1799,
inclusive, as amended and supplemented from time to time.
1.02. It has been further proposed by the Authority that the Council approve and adopt the
proposed modifications to the Tax Increment Financing Plans (the "Existing Plans") for Tax
Increment Financing Districts Nos. 6-7, 9, 11-13 and 16-21(the "Existing Districts") reflecting
increased project costs and increased bonding authority within the Project Area, pursuant to and in
accordance with Laws of Minnesota 2008, Chapter 154, Article 9, Section 23, Laws of Minnesota
2008, Chapter 366, Article 5, Section 23 and Minnesota Statutes, Sections 469.001 to 469.047 and
469.174 to 469.1799, inclusive, as amended and supplemented from time to time.
1.03. It has been further proposed by the Authority that the Council approve the creation of
proposed Tax Increment Financing District No. 22 (the “Proposed District”) and adopt the proposed
Tax Increment Financing Plan (the “Proposed Plan”) relating thereto, pursuant to and in accordance
with Laws of Minnesota 2008, Chapter 154, Article 9, Section 23, Laws of Minnesota 2008,
Chapter 366, Article 5, Section 23 and Minnesota Statutes, Sections 469.001 to 469.047 and
469.174 to 469.1799, 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 the Project Area and modified Existing Plans
for the Existing Districts reflecting increased geographic area, increased project costs and
increased bonding authority within the Project Area and the Proposed Plan for the Proposed
District, defining more precisely the property to be included, the public costs to be incurred, and
other matters relating thereto.
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1.05. The Council has performed all actions required by law to be performed prior to the
approval and adoption of the modifications to the Redevelopment Plan and Existing Plans and
the approval and adoption of the Proposed 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 approve and adopt the modifications to the Redevelopment Plan
and Existing Plans reflecting increased geographic area, increased project costs and increased
bonding authority within the Project Area, to create the Proposed District and to approve and
adopt the Proposed Plan relating thereto.
Section 2. General 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
Existing Plans and the Proposed Plan (collectively, the “Plans”) are necessary to assure the
development and redevelopment of the Project Area.
2.02. The Council hereby finds, determines and declares that the Plans 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 Plans afford maximum
opportunity consistent with the sound needs of the City as a whole for the development and
redevelopment of the Project Area 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 modification, approval and
adoption of the Plans 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 Plans.
2.05. 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 Plans and Exhibit A to this Resolution.
Section 3. Specific Findings for the Redevelopment District.
3.01. The Council hereby finds, determines and declares that the Redevelopment District
constitutes a “tax increment financing district” as defined in Minnesota Statutes, Section
469.174, Subd. 9, and further constitutes a “redevelopment district” as provided for in Laws of
Minnesota 2008, Chapter 154, Article 9, Section 23 and Laws of Minnesota 2008, Chapter 366,
Article 5, Section 23.
3.02. The Council hereby finds, determines and declares that the proposed development or
redevelopment in the Redevelopment District, in the opinion of this Council, would not
Resolution 2013-27 Page 3
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment financing is deemed necessary.
3.03. The Council hereby finds, determines and declares that the increased market value of a
project not receiving tax increment assistance would be less than the increased market value of a
project receiving tax increment assistance after deducting the present value of projected tax
increments for the maximum duration of the Redevelopment District.
3.04. The Council hereby finds, determines and declares that the expenditure of tax increment
within the Redevelopment District serves primarily a public purpose.
3.05. 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 Plans and Exhibit B to this Resolution.
Section 4. Approvals and Adoptions.
4.01. The modifications to the Redevelopment Plan reflecting increased geographic area,
increased project costs and increased bonding authority within the Project Area are hereby
approved and adopted by the Council of the City.
4.02. The modifications to the Existing Plans reflecting increased project costs and increased
bonding authority within the Project Area are hereby approved and adopted by the Council of the
City.
4.03. The creation of the Proposed District within the Project Area and the adoption of the
Proposed Plan relating thereto are hereby approved by the Council of the City.
Section 5. Filing of Plans.
5.01. Upon its approval and adoption of the modified Redevelopment Plan for the Project Area,
the City shall cause said Redevelopment Plan to be filed with the Minnesota Department of
Revenue, the Office of the State Auditor, and Anoka County.
5.02. Upon its approval and adoption of the Redevelopment Plan for the Redevelopment District,
the City shall cause said Redevelopment District Plan to be filed with the Minnesota Department of
Revenue, the Office of the State Auditor, and Anoka County.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
6TH DAY OF MAY 2013.
______________________________
SCOTT J. LUND - MAYOR
ATTEST:
________________________________
DEBRA A. SKOGEN - CITY CLERK
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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. 2013-27 passed by the
City Council on the 6TH day of MAY 2013.
___________________________________
DEBRA A. SKOGEN - CITY CLERK
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EXHIBIT A – GENERAL FINDINGS
The reasons and facts supporting the findings for the modification of the Plans for the Project
Area, Existing Districts and Proposed Districts pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3, are as follows:
1. Finding that the assistance to be provided through the adoption and implementation
of the Plans is necessary to assure the development and redevelopment of the Project Area.
The tax increment assistance resulting from the implementation of the Plans is necessary for the
proposed project to proceed. Please refer to Exhibit XXIV-D of the Redevelopment Plan.
2. Finding that the Plans 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.
The Council has reviewed the Plans and has determined that they are consistent with the City's
comprehensive plan.
3. Finding that the Plans afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development and redevelopment of the Project Area by
private enterprise, and it is contemplated that the development or redevelopment thereof
will be carried out pursuant to development contracts with private developers.
Please refer to the attached Exhibit B for specific information relating to the Proposed District.
4. Finding that the approval and adoption of the Plans is intended and, in the
judgment of this Council, its effect will be to promote the public purposes and accomplish
the objectives specified in the Plans.
The tax increment that will be generated due to the approval and adoption of the Plans will assist
in financing the public improvements and eligible expenses as detailed in the Plans.
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EXHIBIT B – SPECIFIC FINDINGS FOR THE REDEVELOPMENT DISTRICT
In addition to the findings included in Exhibit A, the reasons and facts supporting the additional
findings for the Redevelopment Plan for the Redevelopment District pursuant to Minnesota
Statutes, Section 469.175, Subdivision 3, are as follows:
1. Finding that the Redevelopment District is a "redevelopment district" as defined in
Minnesota Statutes.
The parcels comprising the Redevelopment District (referred to as the Northstar Transit Station
District) are indentified in Laws of Minnesota 2008, Chapter 154, Article 9, Section 23 and Laws
of Minnesota 2008, Chapter 366, Article 5, Section 23 (the “Special Laws”).
Section 23(b) of the Special Laws provides as follows:
The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do no apply to the parcels
located within the Northstar Transit Station District, which are deemed eligible
for inclusion in a redevelopment tax increment district.
2. Finding that the proposed development or redevelopment, in the opinion of the
Council, would not reasonably be expected to occur solely through private investment
within the reasonably foreseeable future and, therefore, the use of tax increment financing
is deemed necessary.
Development activities proposed to occur in the Redevelopment District includes Transit
Oriented Development (“TOD”) including land acquisition, demolition of buildings, remediation
of the Site and the construction of approximately 134,192 square feet of office/warehouse,
300,000 square feet of office, 16,000 square feet of retail, 396 rental housing units and 366
owner occupied housing units.
City and HRA staff have reviewed the estimated development costs and the available methods of
financing and have determined that tax increment assistance is necessary to make TOD
economically feasible and to allow redevelopment to proceed at this time and in the foreseeable
future.
3. Finding that the increased market value of a project not receiving tax increment
financing assistance would be less than the increased market value of a project receiving
tax increment financing assistance after deducting the present value of the projected tax
increments for the maximum duration of the Redevelopment District.
The original market value of the Redevelopment District is approximately $70.0 M. City staff
has determined that without tax increment assistance only the property adjacent to I-694 would be
developed within the foreseeable future with an increased market value of approximately $14.0 M.
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City staff has further determined that with tax increment assistance and with an emphasis on TOD it
is possible to construct approximately 134,192 square feet of office/warehouse, 300,000 square
feet of office, 16,000 square feet of retail, 396 rental housing units and 366 owner occupied
housing units. After deducting the original market value of $70.0 M from the estimated market
value of $208.0 M, City staff has further determined that the increased market value that could
reasonably be expected to occur from a project receiving tax increment assistance would be
approximately $138.0 M.
City staff has further determined that the total amount of tax increment generated over the 26 year
term of the Redevelopment District approximates $94.0 M. Assuming the same term and a present
value rate of 5.0%, the present value of $94.0 M approximates $46.0 M. After deducting the
present value of the tax increment ($46.0 M) from the increase in estimated market value occurring
as a result of utilizing tax increment assistance ($138.0 M), the net increase in estimated market
values approximates $92.0 M.
City staff has further determined that the increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing ($14.0 M) is less than the increased
market value of the site occurring with the use of tax increment financing after subtracting the
present value of the projected tax increments for the maximum duration of the Redevelopment
District ($92.0 M). Further information supporting this Finding is attached as Schedule 1.
4. Finding that expenditure of tax increment serves a primarily public purpose.
The expenditure of tax increment is not intended as a private benefit and any such benefit is
incidental. Public benefits resulting from the proposed project include (i) an increase in the State
and City tax bases, (ii) the acquisition and redevelopment of property which is not now in its
highest or best use, (iii) demolition and removal of existing substandard and blighted structures,
(iv) remediation of contaminated property, and (v) development of infrastructure to facilitate
TOD.
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SCHEDULE 1 TO EXHIBIT B – NUMERICAL “BUT FOR”
ESTIMATED MARKET VALUE INCREASE FOR A DEVELOPMENT PROJECT
WITHOUT TIF ASSISTANCE
Without tax increment assistance the freeway parcels would be developed within the foreseeable
future for approximately 268,000 square feet of office/warehouse.
Estimated Market Value ........................................................................ $ 84.0 M
Original Market Value .......................................................................... $ 70.0 M
Increased Market Value......................................................................... $ 14.0 M
ESTIMATED MARKET VALUE INCREASE FOR A DEVELOPMENT PROJECT
WITH TIF ASSISTANCE
With tax increment assistance it is proposed that approximately 134,192 square feet of
office/warehouse, 300,000 square feet of office, 16,000 square feet of retail, 396 rental housing
units and 366 owner occupied housing units will be constructed.
Estimated Market Value ........................................................................ $ 208.0 M
Original Market Value .......................................................................... $ 70.0 M
Increased Market Value......................................................................... $ 138.0 M
Less: Present Value of the Tax Increment
generated at 5.0% for the duration
of the Proposed Redevelopment District ................................... $ 46.0 M
Net Increased Market Value .................................................................. $ 92.0 M
MMB: 4848-0870-5555, v. 1