HomeMy WebLinkAboutResolution - 96-213 - Redevelopment Project No. 5 & Tax Increment Financing District No.13 (Eden Prairie Mall Expansion) - 12/17/1996 CITY OF EDEN PRAIRIE
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO. 96-213
A RESOLUTION CREATING REDEVELOPMENT PROJECT NO. 5 AND APPROVING
THE REDEVELOPMENT PLAN RELATING THERETO AND CREATING TAX
INCREMENT FINANCING DISTRICT NO. 13 AND APPROVING THE TAX
INCREMENT FINANCING PLAN RELATING THERETO.
BE IT RESOLVED by the City Council (the "Council") of the
City of Eden Prairie, Minnesota (the "City") , as follows:
Section 1. Recitals .
1. 01 . It has been proposed and approved by the Housing and
Redevelopment Authority In and For the City of Eden Prairie,
Minnesota (the "Authority") that *the Council approve the creation
of proposed Redevelopment Project No. 5 and approve and adopt
the proposed Redevelopment Plan relating thereto, 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 and approved by the
Authority that the Council approve the creation of proposed Tax
Increment Financing District No. 13 and approve and adopt the
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. 03 . The Authority has caused to be prepared, and this
Council has investigated the facts with respect thereto, the
proposed Redevelopment Plan for Redevelopment Project No. 5 and
the proposed Tax Increment Financing Plan for Tax Increment
Financing District No. 13, defining more precisely the property
to be included, the public costs to be incurred and other matters
relating thereto.
1. 04 . The Authority and the Council have performed all
actions required by law to be performed prior to the approval and
adoption of the proposed Redevelopment Plan and proposed Tax
Increment Financing Plan.
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1. 05 . The Council hereby determines that it is necessary
and in the best interests of the City and the Authority at this
time to create Redevelopment Project No. 5 and to approve and
adopt the proposed Redevelopment Plan relating thereto and to
create proposed Tax Increment Financing District No. 13 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 Redevelopment Plan and Tax Increment
Financing Plan are necessary to assure the development and
redevelopment of Redevelopment Project No. 5 .
2 . 02 ., The Council hereby finds, determines and declares
that the Redevelopment Plan and 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 Redevelopment Plan and 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. 5 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 Redevelopment
Plan and Tax Increment Financing Plan are 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 Redevelopment Plan and Tax Increment
Financing Plan.
2 . 05 . The Council hereby finds, determines and declares
that proposed Tax Increment Financing District No. 13 constitutes
a "tax increment financing district" as defined in Minnesota
Statutes, Section 469 . 174 and further that Tax Increment
Financing District No. 13 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. 13, in the opinion of the
Council, would not occur solely through private investment within
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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 Redevelopment Plan, Tax Increment Financing
Plan, and Exhibit A of this Resolution.
Section 3 . Creation of Proposed Redevelopment Project No. 5
and Adoption of the proposed Redevelopment Plan.
3 . 01. The creation of proposed Redevelopment Project No. 5
and the adoption of the proposed Redevelopment Plan relating
thereto are hereby approved by the Council of the City "of Eden
Prairie.
Section 4 . Creation of Proposed Tax Increment Financing
District No. 13 and Adoption of the Proposed Tax Increment
Financing Plan.
4 . 01. The creation of proposed Tax Increment Financing
District No. 13 within Redevelopment Project No. 5 and the
adoption of the proposed Tax Increment Financing Plan relating
thereto are hereby approved by the Council of the City of Eden
Prairie.
Section 5 . Election of City Contribution.
5 . 01. The Council hereby elects to make a qualifying local
contribution equal to 5 . 000-. of the tax increment generated from
Tax Increment Financing District No. 13, pursuant to 1995
Minnesota Laws, Chapter 264, Article 5, Section 6, subdivision
6 (d) , as amended by 1996 Minnesota Laws, Chapter 471, Article 7,
Section 3 .
Section 6 . Filing of Plans.
6 . 01. Upon approval and adoption of the Redevelopment Plan
and Tax Increment Financing Plan (collectively the "Plans") , the
City shall cause said Plans to be filed with the Minnesota
Department of Revenue.
Adopted by the Council of the City this 17th day of
December, 1996.
The motion for the adoption of the foregoing resolution was
duly seconded by Council Member , and upon vote
being taken thereon, the following voted in favor thereof:
and the following voted against the same:
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Whereupon said resolution was declared duly passed and adopted,
and was signed by the Mayor and attested to by the City Clerk.
M r
ATTEST:
City Cr
k
CERTIFICATION
I, ��hn Fmn e- the duly qualified Clerk of the City
of Eden Prairie, County of Hennepin, Minnesota, hereby certify
that the foregoing is a true and correct copy of Resolution
No. L?6-.1/3 and passed by the City Council on the 17th day of
December, 1996 .
City Clerk
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EXHIBIT A TO RESOLUTION NO. q6 1�
The reasons and facts supporting the findings for the Tax
Increment Financing Plan (the "TIF Plan") for Tax Increment
Financing District No. 13 (the "TIF District") as required
pursuant to Minnesota Statutes, Section 469 .175, Subdivision 3,
are as follows:
1. Finding that the proposed tax increment financing district
is a "redevelopment district" as defined in Minnesota Statutes,
Section 469 . 174, subdivision 10.
The TIF District consists of two parcels of land which qualify as
a redevelopment district under Minnesota Statutes, Section
469.174, subdivision 10. Each parcel contains a building which
is "structurally substandard" as defined in the above cited
Statute. Furthermore, it would cost more than 15% of the cost of
constructing a new structure of the same square footage and type
on the site to bring the existing buildings into compliance or to
modify them to meet the building codes applicable to new
buildings.
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.
Due to the substantial costs for demolition, relocation,
acquisition, rehabilitation, remediation and other public costs
associated with this project, the project would not be
financially feasible without City assistance. Additionally, the
City has projected that the increase in market value resulting
from the proposed development with tax increment assistance less
the present value of the tax increment generated would be greater
than the increase in market value resulting from development
without tax increment assistance (see attached Schedule 1 to
Exhibit A) .
3 . Finding that the TIF Plan conforms to the general plan for
the development or redevelopment of the municipality as a whole.
The Planning Commission, the Housing and Redevelopment Authority
in and for the City, and the City Council of the City of Eden
Prairie have reviewed the TIF Plan for the TIF District and have
determined that the TIF Plan conforms to the comprehensive plan
of the City.
4 . Finding that the TIF Plan for TIF District will afford
maximum opportunity, consistent with the sound needs of the City
as a whole for the development or redevelopment of Redevelopment
Project No. 5 by private enterprise.
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The project to be developed consists of the construction of a new
Dayton' s department store, the relocation of the existing Sears
department store to a new building, the construction of
approximately 285, 000 additional square feet to the existing
shopping center, the construction of a new 14 to 16 screen
theater, the relocation and remodeling of a new food court with
approximately 10 vendors and 700 seats, the construction of two
full service restaurants, the construction of an approximate 80
foot by 185 foot ice rink with supporting facilities including
approximately 500 seats, the overall renovation and upgrading of
the mall, and the construction of approximately 5, 000 square feet
for City use. Upon completion of the project, the City' s tax
base will increase by approximately $71, 000, 000 . The
rehabilitation of the Eden Prairie Center by private enterprise
is consistent with City goals and needs and in particular those
specified for Redevelopment Project No. 5 .
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SCHEDULE 1 TO EXHIBIT A
RESOLUTION NO. Cj(0 3
Without TIF Assistance:
(1) the Sears department store
would remain the same
(ii) there would be no new
Daytons department store
(iii) The Mall stores would not be
rehabilitated
Increased Market Value Without TIF Assistance $15, 000,000
With TIF Assistance:
(i) the Sears department store
would be relocated
(ii) a Daytons department store
would be constructed
(iii) the Mall stores would be
rehabilitated
Increased Market Value with
TIF Assistance $70, 922, 040
Less Present Value of Tax
Increment (See Page II-D-4) $23 ,595 ,181
Net Increased Market Value with TIF Assistance $47,326,859
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PRESENT VALUE ANALYSIS
Period Tax Semi Annual Cumulative
Ending Increment Balance Balance
06/01/96 0 0 0
12/01/96 - 0 0 0
06/01/97 0 0 0
12/01/97 0 0 0
06/01/98 0 0 0
12/01/98 0 0 0
06/01/99 156,732 122,804 122,804
12/01/99 156,732 116,956 239,760
06/01/2000 1,458,747 1,036,704 1,276,464
12/01/2000 1,458,747 987,337 2,263,801
06/01/2001 1,524,518 982,718 3,246,519
12/01/2001 1,524,518 935,922 4,182,441
06/01/2002 1,590,290 929,809 5,112,250
12/01/2002 1,590,290 885,533 5,997,783
06/01/2003 1,656,061 878,245 6,876,028
12/01/2003 1,656,061 836,423 7,712,451
06/01/2004 1,721,833 828,231 8,540,682
12/01/2004 1,721,833 788,791 9,329,474
06/01/2005 1,787,604 779,926 10,109,400
12/01/2005 1,787,604 742,787 10,852,186
06/01/2006 1,853,376 733,444 11,585,630
12/01/2006 1,853,376 698,518 12,284,148
06/01/2007 1,853,376 665,255 12,949,403
12/01/2007 1,853,376 633,576 13,582,979
06/01/2008 1,853,376 603,406 14,186,385
12/01/2008 1,853,376 574,672 14,761,058
06/01/2009 1,853,376 547,307 15,308,365
12/01/2009 1,853,376 521,245 15,829,609
06/01/2010 1,853,376 496,424 16,326,033
12/01/2010 1,853,376 472,784 16,798,817
06/01/2011 1,853,376 450,271 17,249,088
12/01/2011 1,853,376 428,829 17,677,918
06/01/2012 1,853,376 408,409 18,086,327
12/01/2012 1,853,376 388,961 18,475,287
06/01/2013 1,853,376 370,439 18,845,726
12/01/2013 1,853,376 352,799 . 19,198,525
06/01/2014 1,853,376 335,999 19,534,524
12/01/2014 1,853,376 319,999 19,854,523
06/01/2015 1,853,376 304,761 20,159,284
12/01/2015 1,853,376 290,249 20,449,533
06/01/2016 1,853,376 276,427 20,725,960
12/01/2016 1,853,376 263,264 20,989,224
06/01/2017 1,853,376 250,728 21,239,952
12/01/2017 1,853,376 238,788 21,478,740
06/01/2018 1,853,376 227,417 21,706,158
12/01/2018 1,853,376 216,588 21,922,746
06/01/2019 1,853,376 206,274 22,129,020
12/01/2019 1,853,376 196,452 22,325,472
06/01/2020 1,853,376 187,097 22,512,568
12/01/2020 1,853,376 178,187 22,690,756
06/01/2021 1,853,376 169,702 22,860,458
12/01/2021 1,853,376 161,621 23,022,079
06/01/2022 1,853,376 153,925 23,176,004
12/01/2022 1,853,376 146,595 23,322,600
06/01/2023 1,853,376 139,615 23,462,214
12/01/2023 1,853,376 132,966 23,595,181
86,513,101 23,595,181 23,595,181
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