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HomeMy WebLinkAboutResolution - 80-188 - Granting Approval of a Redevelopment Plan and a Tax Increment Financing Plan - RESOLUTION N0. R80-188 RESOLUTION GRANTING APPROVAL OF A REDEVELOPMENT PLAN AND A TAX INCREMENT FINANCING PLAN BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota ( the City) as follows: �s Section 1. Recitals. 1.1. By Resolution No. 80-112, adopted June 3 , 1980, this Council activated the Housing and Redevelopment Authority in and for the City of Eden Prairie (the Authority) pursuant to the Housing and Redevelopment Act, Minnesota Statutes, Sections• 462.411 to 462.711. Resolution No.80-112 was published on June 12 , 1980 in the Eden Prairie News Upon final effectiveness of Resolution No.80-112, the Finance Director-Clerk filed a certified copy thereof with the state .housing commission, as required by Minnesota Statutes, Section 462.425, Subdivision 4. The Mayor then appointed, 'with the approval of the governing body, five residents of the City to be Commissioners of the Authority. A certificate of appointment for each Commissioner has been -filed with the Finance Director-Clerk, and certified copies of said certificates have been transmitted to the state housing commission, as required by Minnesota Statutes, Section 462.425, Subdivision 7. - The Authority has met, and is empowered to transact business and exercise its powers as provided in the Housing and Redevelopment Act. 1. 2. The Authority has prepared a redevelopment plan for that part of the City consisting of the undeveloped land within and in the vicinity of the Major Center Area. The plan was immediately transmitted to the planning agency of the City, which has determined, at its - meeting on August 11, 1980, that the plan conforms to the general plan _for the development of the City embodied in the 1968 Comprehensive Guide Plan, as amended by the MCA Planned Unit Development, and the updated Guide Plan. The Authority has submitted the redevelopment plan to this Council for approval pursuant to Minnesota Statutes, Section 462.521, Subdivision 1._ On -October 7, 1980, this council conducted a public hearing on the desirability of approving the redevelopment plan. Notice of the public hearing was duly published as required by law in the Eden Prairie News, a newspaper of general circulation in the City, on September 18, 1980. 1. 3. Pursuant to the Minnesota Tax Increment Financing Act, Minnesota Statutes, Sections 273 .71 to 273.78, the Authority has submitted a tax increment financing plan to this Council for approval . The tax increment financing plan was prepared in conjunction with the redevelopment plan referred to in Subsection 1. 2 hereof and is the proposed method for financing the redevelopment projects to be undertaken pursuant to the redevelopment plan. The Authority has provided at its meeting on September 2, 1980, an opportuni&y for members of the Board of Commissioners for Hennepin County and of the Board of Education for Independent School District No . 272 to meet with the Authority and comment on the tax increment financing plan. Pursuant to Minnesota Statutes, Section 273.74, Subdivision 3, this Council conducted a public hearing on the desirability of approving the tax increment financing plan.of October 7, 1980, in conjuction with the public hearing conducted on the redevelopment plan. Notice of the public hearing was_ duly published as required by law in the Eden - Prairie News, a newspaper of general circulation in the City, on September 18, 1980. Section 2. Approval of Redevelopment Plan and Redevelopment Projects. On the basis of the redevelopment plan prepared by the Authority and the information elicited at the p.ublic hearing referred to in Subsection 1. 2 hereof, it is hereby found , determined and declared: 2.1 The redevelopment plan prepared by the Authority covers that part of the City within and in the vicinity of the Major Center Area. The redevelopment plan proposes that the inadequacy of local roadways in the area has hindered the development of open and undeveloped land therein, causing the area to be substandard and deterioriated within the meaning of the Housing and Redevelopment Act. The redevelopment plan proposes redevelopment projects consisting of the improvement and construction of roads, bridges and ramps in the area, _ including Valley View Road, Schooner Boulevard , U.S. Highway 169 and Mitchell Road, and the acquisition of necessary rights of way at a total cost now estimated to be $15 ,120 ,000, to stimulate development of the undeveloped . land in the area. The redevelopment projects are to be financed by the issuance of bonds, in a total principal amount now estimated to be $17,800,000, pursuant to the tax increment financing plan prepared by the Authority and incorporated in the redevelopment plan. Under the tax increment financing plan, tax increments derived from a tax increment financing district a a • I coterminous with the area covered by the redevelopment plan, together with special assessments Lif any) on property specially benefited by the redevelopment projects included in the plan, would be pledged for the payment of the bonds. 2. 2 In determining the -need to activate the Authority, this Council found by Resolution No$0-4112 that the local roads and thoroughfares within and in tTie vicinity of the Major Center Area are inadequate to handle the flow of traffic in the area. The Council further found that the inadequacy of these roadways has hindered development of the open and undeveloped land in the Major Center Area and contiguous areas. The open or undeveloped land composing most of sucli' area was determined to be blighted within the meaning of the Housing and Redevelop- ment Act by virtue of the physical characteristics of the ground and the present pattern of roadways which has hindered normal development by private enterprise. Such land, however , was found to be potentially useful and valuable for contributing to the welfare of the City. These findings are hereby ratified and confirmed and the specific findings underlying these conclusions are incorporated by reference herein. 2. 3. This Council hereby finds that the land included in• the redevelopment plan would not be made available for redevelopment without the financial aid to be sought pursuant to the plan. The specific findings underlying this conclusion are the following: (a) ...Vacant and undeveloped land within and in the vicinity of the Major Center Area has not been developed to the extent expected by the City, despite the major thoroughfares serving the area, including Interstate 494, U.S. Highways 169 and 212 and State Highway 5, and despite the substantial development interest that has been shown in the area. (b) Development by private enterprise of the open and undeveloped land within the area would be materially enhanced by the improvement of local roads and thoroughfares to provide local access from the major federal and state highways serving the area. (c) The improvement of local roads and thoroughfares, specifically the acquisition of necessary rights of way and the improvement and construction of roads, bridges and ramps in the area, by their very nature require the expenditure of public funds to be feasible. (d) Federal and state funding is not available for the undertaking of the public improvements proposed by the redevelopment plan. (e) Tax increment financing would provide a fair and just method of recouping from the area the costs of public improvements to the area. (f) Improvement of local roads and thoroughfares would materially enhance the development of the open and undeveloped land within the area by private enterprise. 2.4 This Council hereby finds that the redevelopment plan will afford in the redevelopment area covered by the plan maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the area by private enterprise. The specific findings underlying this conclusion are the following: (a) In 1973, the City Council adopted the MCA Planned Unit Development as an official amendment to its .1968 Comprehensive Guide Plan to provide for high density commercial, industrial and residential development within the area covered by the redevelopment plan. (b) . High density commercial, industrial and residential development is dependent to agreater degree than other land uses on the provision of adequate access through efficient local thoroughfares so as to provide attractive locations convenient for customers, residents and the delivery and shipping of products. (c) The area covered by the redevelopment plan is the area of the City in which the Authority, this Council and the planning agency for the City, as evidenced by the Comprehensive Guide Plan, desire the high density commercial , industrial and residential growth of the City to take place. (d) It is infeasible for private enterprise to construct public improvements of the cost and magnitude proposed by the redevelopment plan. (e) The redevelopment projects to be undertaken pursuant to the redevelopment plan will provide maximum opportunity for development by private enterprise by making the land more accessible to major thoroughfares in the area and to existing commercial and residential developments nearby. 2.5 This Council `hereby finds that the redevelopment plan conforms to the general plan for the development of the City as a whole. The specific findings underlying this conclusion are the following: (a) The redevelopment plan incorporates the 1968 Comprehensive Guide Plan, as amended by the MCA Planned Unit Development, as the guide for permitted land uses in the area covered by the redevelopment plan. (b) The 1968 Comprehensive Guide Plan, as amended by the MCA Planned Unit Development, has been approved by this Council and establishes general objectives for the future -use of land in the City.. . (c) The redevelopment projects to be undertaken pursuant to the redevelopment plan would not alter existing or proposed land uses as prescribed by the Comprehensive Guide Plan, but would involve only the acquisition of necessary rights of .way incidential to the construction or improvement of roads, bridges and ramps in the area. 2. 6 Based on our review of the redevelopment plan, the information elicited at the public hearing and _ the findings made in Subsections 2.1 to 2.5 hereof, this Council hereby approves the redevelopment plan as submitted by the Authority and authorizes the Authority to proceed with the redevelopment projects outlined in the plan. The Council finds that the redevelopment plan provides for the elimination of the conditions making the vacant and undeveloped land in the area covered by the redevelopment plan blighted within the meaning of the Housing and Redevelopment Act so as to make the land useful and valuable for contributing to the public health, safety and welfare of the City and its inhabitants. This Council also determines that the acquisition of the various rights of way as part of the redevelopment projects to be undertaken pursuant to the redevelopment . plan is necessary to carry out the redevelopment plan. The Council hereby declares that the redevelopment projects outlined in the redevelopment plan constitute "redevelopment projects" within the meaning of Minnesota Statutes, Section 462.421, Subdivision 13. Section 3. Approval of Tax Increment Financing Plan. On the basis of the tax increment financing plan and the information elicited at the public hearing referred to in Subsection 1.3 hereof, it is hereby found, determined and declared : 3.1. The Authority has prepared in conjunction with the redevelopment plan* approved in Section 2 hereof a tax increment financing plan to finance the redevelopment projects -to be undertaken pursuant to the redevelopment plan. The proposed tax increment financing district is coterminous with the area covered by the redevelopment plan. The tax increment financing plan contains a statement of objectives for the improvement of the district, a statement as to the development program for the district and a statement of the property within the district which the Authority intends to acquire. The plan also estimates the cost of the district, the amount of bonded indebtedness to be incurred, the sources of • revenues to finance or otherwise pay public costs of the district, the most recent assessed value of taxable real property within the district, the captured assessed value of the district at completion and the duration of the district. The tax increment financing plan further contains an estimate by the Authority of the impact of the proposed tax increment financing on the assessed values of all taxing jurisdictions in which the district is located. The plan further states that all the captured assessed value is necessary for the objectives of "the district. 3. 2. This Council hereby finds that generally throughout the proposed tax increment financing district the land to be included therein is not predominantly occupied (as that requirement is defined in Minnesota Statutes, Section 273 .73, Subdivision 10(b) ) by buildings, streets, utilities or other improvements, but that at least 80 percent of the total acreage of such land will have a fair market value upon inclusion within the district which, when added to the estimated cost of preparing the land for use through the undertaking of the redevelopment projects pursuant to the redevelopment plan, exceeds its anticipated fair market value after completion of said preparation. This finding is based, among other things, on the information furnished by the memo of Robert Martz, — dated September 16, 1980 to- the City Council (attached). Thus,„- ---the proposed tax increment financing district qualifies as=a--- "redevlopment district" within the meaning of i'linnesota Statutes, Section 273.73, Subdivision 10. 3 .3. This Council hereby finds that the redevelopment projects to bQ. _undertaken pursuant to the redevelopment plan would not, in the opinion of this Council, occur solely through private investment within the reasonably forseeable future and that therefore the use of tax increment financing is deemed necessary. The specific findings underlying-this conclusion are the following: (a) The redevelopment projects to -be . undertaken pursuant to the redevelopment plan involve the construction and improvement of public roads, bridges and ramps. (b) The cost and magnitude of these redevelopment projects make their undertaking and financing solely through private investment -infeasible and unforseeable. • (c) State and federal funding of the redevelopment projects is unavailable and thus funding by the City is necessary. (d) This Council finds tax increment financing to be the most fair- and equitable vehicle available to the City to finance the redevelopment projects and thus deems tax increment financing to be necessary therefor . 3 .4. This Council hereby finds_ that the tax increment financing plan conforms to the general plan for the redevelopment of the City as a whole. The specific findings underlying this conclusion are the following: (a) For the reasons expressed in Subsection 2. 5, this Council found that the redevelopment plan conformed to the general plan- for the development of the City as a whole. (b) The tax increment financing plan provides financing for the redevelopment projects to be undertaken pursuant to the redevelopment plan. Because the redevelopment plan conforms to the general plan for the development of the City Sas a whole, the tax increment financing plan will conform as well. 3.5. This Council hereby finds that the tax increment financing plan will afford maximum opportunity, consistent with' the sound needs of the City as a whole, for the redevelopment of the district by R�ivate enterprise. The specific findings underlying this conclusion are the followiftg: (a) For the reasons expressed in Subsection 2.4, this Council found that the redevelopment plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the area covered by the redevelopment plan. - (b) The tax increment financing district proposed by the tax increment financing plan is coterminous with the area covered by the redevelopment plan. ' Because the tax increment financing plan provides a method for financing the redevelopment projects to be undertaken pursuant to the redevelopment plan and because the redevelompent plan will afford maximum opportunity for the redevelopment of the tax increment financing district by private enterprise, the tax increment financing plan will afford maximum opportunity as well. 3.6 . Based on our review of the tax increment financing plan, the information elicited at the public hearing and the findings in Subsections 3.1 to 3.5 hereof, this Council hereby approves the tax increment financing plan submitted by the Authority for the establishment of a tax increment financing district in the City, the _ district, as a redevelopment district within the meaning of the Tax Increment Financing Act, to have a duration up to 25 years after the date of receipt by the Authority of the first tax increment. 3.7. The City is empowered by Minnesota Statutes, Section 273.74, Subdivision 3(e) and Section 273 .76, Subdivision 3, to elect alternative methods of tax increment computation for "commercial-industrial " property" within the district subject to the area-wide tax imposed pursuant to the Minnesota Fiscal Disparities Act, Minnesota Statutes, Chapter 473F. This Council hereby elects the method of computation set fortn in Minnesota Statutes, Section 273._76, Subdivision 3(b) . . Y . Section 4. Notification and Implementation. The Finance Director-Clerk is ere y aut orize an directed to give written notice to the Authority of the approval by this Council of the redevelopment plan and the redevelopment projects to be undertaken thereunder . The Council further -authorizes the Authority to request that the County Auditor of Hennepin County certify the original assessed value of the tax increment financing district as described in the tax increment financing plan (and submit with the request a statement that this Council has made the election as described in Subsection 3.7 hereof) . The Authority is authorized to file the tax increment financing plan with the state planning agency as required by Minnesota Statutes , Section 273.74, Subdivision 2. i j Mayor I Attest: • 7ance" ector-Clerk i • MEMORANDUM September 16, 1980 To: Council Members *W ��� From: Robert N. Martz, City Assessor After making an evaluation of the tax increment project the following was found to be true: Generally throughout the proposed tax increment financing district the land to be included therein is not predominantly occupied (as that requirement is defined in Minnesota Statutes, Section 273.73, Subdivision 10 (b)) by buildings, streets, utilities or other im- provements, but that at least 80 percent of the total acreage of such land will have a fair market value upon inclusion within the district which, when added to the estimated cost of preparing the land -for use through the undertaking of the redevelopment projects pursuant to the redevelopment plan, exceeds its anticipated fair market value after completion of said preparation.