HomeMy WebLinkAboutResolution - 2013-53 - Modification to Redevelopment Project No. R and Amending TIF Plan for TIF District No. 13 - 06/04/2013 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO. 2013-53
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR REDEVELOPMENT PROJECT NO. 5; AND ADOPTING AN
ADMINISTRATIVE AMENDMENT TO THE TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT)
DISTRICT NO. 13
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. The Board of Commissioners (the "Board") of the Housing and Redevelopment
Authority in and for the City of Eden Prairie, Minnesota (the "HRA") has heretofore established
Redevelopment Project No. 5 and adopted the Redevelopment Plan therefor.It has been proposed by
the HRA that the City adopt a Modification to the Redevelopment Plan for Redevelopment Project
No. 5 (the"Redevelopment Plan Modification")and adopt an administrative amendment to the Tax
Increment Financing Plan (the "TIF Plan Amendment") for Tax Increment Financing
(Redevelopment)District No. 13(the "District")(the Redevelopment Plan Modification and the TIF
Plan Amendment are referred to collectively herein as the"Plans");all pursuant to and in conformity
with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections
469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and
presented for the Council's consideration.
1.02. The HRA and City have investigated the facts relating to the Plans and have caused
the Plans to be prepared.
1.03. The HRA and City have performed all actions required by law to be performed prior
to the adoption and approval of the proposed Plans, including, but not limited to, a review of and
written comment on the Redevelopment Plan Modification by the City Planning Commission,
approval of the Plans by the HRA on the date hereof, and the holding of a public hearing on the
Redevelopment Plan Modification upon published notice as required by law.
Section 2. Findings for the Adoption and Approval of the Plans
2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this
Council, the effect of such actions will be, to provide an impetus for development in the public
interest and accomplish certain objectives as specified in the Plans, which are hereby incorporated
herein.
Section 3. Findings for the Modification of the Redevelopment Plan
3.01. This Council hereby finds that the proposed Redevelopment Plan Modification would
improve the Redevelopment Project by retarding blight, encouraging private redevelopment of
property therein,thereby increasing employment and housing opportunities and the tax base of the
City and overlapping taxing jurisdictions.
3,02. This Council hereby finds that the Redevelopment Plan, as modified by the
Redevelopment Plan Modification, will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development of the District by private enterprise.
3.03. This Council hereby finds that the redevelopment activities proposed by the
Redevelopment Plan,as modified by the Redevelopment Plan Modification,conform to the general
plan for the development or redevelopment of the City as a whole. The redevelopment activities are
compatible with the City's zoning ordinances and other related regulations and encourage efficient
use of existing infrastructure as set forth in the City's Land Use Plan. It is in the best interests of the
City to approve the Redevelopment Plan Modification.
3.04. Upon review of the Redevelopment Plan Modification,the information elicited from
the planning agency and at the public hearing,and on the basis of the findings made in Sections 3.01
to 3.03,this Council hereby approves the Redevelopment Plan Modification.
Section 4. Findings for the Modification of Tax Increment Financing District(Redevelopment)
No. 13
4.01. The Council hereby finds that the District,as modified by the TIF Plan Amendment,
is in the public interest and is a"redevelopment district"under Minnesota Statutes,Section 469.174,
Subd. 10 (a)(1). At least 70 percent of the area of the parcels in the District are occupied by
buildings, streets,utilities,paved or gravel parking lots or other similar structures and more than 50
percent of the buildings in the District,not including outbuildings,are structurally substandard to a
degree requiring substantial renovation or clearance.
4.02. The TIF Plan Amendment amends the TIF Plan by making a line item revision to the
budget. At the time of the creation of the District and adoption of the TIF Plan,this Council found
that the proposed redevelopment would not occur solely through private investment within the
reasonably foreseeable future and that the increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing would be less than the increase in the
market value estimated to result from the proposed development after subtracting the present value
of the projected tax increments for the maximum duration of the District permitted by the TIF Plan,
that the TIF Plan conformed to the general plan for the development or redevelopment of the City as
a whole; and that the TIF Plan would afford maximum opportunity consistent with the sound needs
of the City as a whole, for the development or redevelopment of the District by private enterprise.
The TIF Plan Amendment does not alter the findings made by this Council at the creation of the
District and adoption of the TIF Plan.
Section 5. Public Purpose
5.01. The adoption of the Plans conforms in all respects to the requirements of the Act and
will help fulfill a need to develop an area of the City which is already built up, to provide
employment opportunities,to improve the tax base and to improve the general economy of the State
and thereby serves a public purpose. The City believes these benefits directly derive from the tax
increment assistance provided under the TIF Plan and the TIF Plan Amendment. The developer will
receive only the assistance needed to make this development financially feasible. As such, any
private benefits received by the developer are incidental and do not outweigh the primary public
benefits.
Section 6. Approval and Adoption of the Plans
6.01. The Plans, as presented to the Council on this date, including without limitation the
findings and statements of objectives contained therein, are hereby approved,ratified,established,
and adopted and shall be placed on file in the office of the City Clerk.
6.02. The staff of the City,the City's advisors and legal counsel are authorized and directed
to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this
Council for its consideration all further plans,resolutions,documents and contracts necessary for this
purpose.
6.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of
the District,as described in the Plans,and to certify in each year thereafter the amount by which the
original net tax capacity has increased or decreased; and the Eden Prairie Housing and
Redevelopment Authority is authorized and directed to forthwith transmit this request to the County
Auditor in such form and content as the Auditor may specify,together with a list of all properties
within the District,for which building permits have been issued during the 18 months immediately
preceding the adoption of this resolution.
6.04. The City Clerk is further authorized and directed to file a copy of the final Plans with
the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor
pursuant to Minnesota Statutes 469,175, Subd. 4a.
ADOPTED by the Eden Prairie City Council on June 4, 2013.
a n c y;ry-f a--L W, V— n Ma y
ATTEST: SEAL
Ka$een Porta, City Clerk
EXHIBIT A
CITY COUNCIL RESOLUTION NO.2013-53
The reasons and facts supporting the findings for Resolution Adopting the Modification 1othe Redevelopment
Plan for Redevelopment Project No. 5 are au set forth below:
FINDING 3.Ol. The Redevelopment Plan Modification would improve the Redevelopment Project hy
retarding blight, encouraging private redevelopment of property therein, thereby increasing employment and
housing opportunities and the tax base of the City and overlapping taxing jurisdictions.
The City Council Finds: The improvements contemplated in area included in the Redevelopment
Project Area by the amendment enable and were key to the development of property in the southeast quadrant of
Crosstown Highway and Shady (}uk Road. The proposed development ufup to four office towers housing
approximately 6,000 employees required the improvement of roads serving the area. The development
maximizes the use of property that has been vouumt and undeveloped and iucnuumsm o,up|uymoeot in the City
which will likely spur the need for more housing opportunities for the employees working at the site.
FINDING 3.02. The Redevelopment Plan, as modified by the Redevelopment Plan Modification, will
afford nooxioounm opportunity, consistent with the needs of the City as u whole, for the redevelopment of the
District byprivate enterprise.
The City Council Finds: The Redevelopment Plan, as modified by the Redevelopment Plan
&4odifioudon, continues to afford maximum opportunity,consistent with the needs of the City uuu whole,for the
redevelopment of the District by private enterprise. At the time of the oreo1imo of the District and adoption of
tbcTIR Hun, the Council found that the Redevelopment Plan would afford maximum opportunity, consistent
with the needs of the City as o whole, for the redevelopment of the District by private sokerpdms. The
amendment ofthe Redevelopment Plan by enlarging the geographic area of the Redevelopment Project Area
does not alter the finding made by this Council at the creation of the District and the adoption of the TIF Plan.
The finding remains unaffected hy the enlargement ofthe geographic area. The redevelopment of the District
by private enterprise is enhanced in its ouutuinub/|ity by private development within the Redevelopment Project
Area and the additional employment opportunities provided within the Project Area.
FINDING 3.O3. The redevelopment activities proposed hvthe Redevelopment Plan, amnmod|fied6vthe
Rodrvs}opnosn1 p|un Modification, conform to the general plan for the development or redevelopment ofthe
City as a whole. The redevelopment activities are uonnpudbkc with the Cihy`m zoning ordinances and other
related regulations and encourage efficient use of existing infrastructure as set forth in the City`m Land Use P|uo,
The City Council Finds: The proposed improvements in the area added by the amendment were
considered by the Planning Commission adu meeting held on Muy\3, 2013. The Planning Commission found
that the modification to the redevelopment plan conform to the general plan for the development or
redevelopment of the City umuwhole.
FIQI)DN{} 3.04. The Redevelopment Plan, as modified by the Redevelopment P|uu Modification,
provides an outline for the development or redevelopment ofthe area and is sufficiently complete to indicate its
relationship bndefiuite local objectives aoto appropriate land uses and to indicate general |uud uses and general
standards of development orredevelopment.
The City Council Finds: The amendment to the Redevelopment P1uu enlarges the geographic area of
the Redevelopment Project Area No. 5. The improvements proposed to be constructed in the area ofthe
amendment provide the necessary infrastructure toachieve |oou| objectives of the development ofthe land in the
southeast quadrant of Crosstown Highway and Shady (]uk Road. The proposed development of this land has
been agreed to brAw000 the City and the owner and memorialized in u development agreement setting out the
general and specific land use and general and mpcc|fiostandards for the development of the property.
APPENDIX A
CITY RESOLUTION 2013-53
AND
HRA RESOLUTION 2013-03
Supporting Statement by Janet Jeremiah, Director of Community Development and Robert Ellis,
Director of Public Works for the City of Eden Prairie.
Janet Jeremiah states that I am the Director of Community Development for the City of Eden
Prairie. Robert Ellis states that I am the Director of Public Works for the City of Eden Prairie. In
our capacity as Directors of the our respective City of Eden Prairie Departments, we have both
been involved in the amendment of the Redevelopment Plan Redevelopment Project Area No. 5
which enlarges the geographic area of the Redevelopment District. We have also both been
involved in and led our respective departments in the City's efforts for the development of
property in the southeast quadrant of Crosstown Highway and Shay Oak Road and the amended
Project Area in general. In support of the Findings to be made by the City Council and the HRA
for the Redevelopment Plan Modifications we provide the following statement based upon our
knowledge and experience with this Redevelopment Plan and development in the City generally.
FINDING 3.01. The Redevelopment Plan Modification would improve the Redevelopment
Project by retarding blight,encouraging private redevelopment of property therein,thereby increasing
employment and housing opportunities and the tax base of the City and overlapping taxing jurisdictions.
SUPPORTING STATEMENT: The improvements contemplated in area included in the
Redevelopment Project Area by the amendment enable and were key to the development of property in
the southeast quadrant of Crosstown Highway and Shady Oak Road. The proposed development of up to
four office towers housing approximately 6,000 employees required the improvement of roads serving the
area. The development maximizes the use of property that has been vacant and undeveloped and
increases employment in the City which will likely spur the need for more housing opportunities for the
employees working at the site.
FINDING 3.02. The Redevelopment Plan,as modified by the Redevelopment Plan Modification,
will afford maximum opportunity, consistent with the needs of the City as a whole,for the redevelopment
of the District by private enterprise.
SUPPORTING STATEMENT: The Redevelopment Plan, as modified by the Redevelopment
Plan Modification,continues to afford maximum opportunity,consistent with the needs of the City as a
whole,for the redevelopment of the District by private enterprise. At the time of the creation of the
District and adoption of the TIF Plan,the Council found that the Redevelopment Plan would afford
maximum opportunity,consistent with the needs of the City as a whole, for the redevelopment of the
District by private enterprise. The amendment of the Redevelopment Plan by enlarging the geographic
area of the Redevelopment Project Area does not alter the finding made by this Council at the creation of
the District and the adoption of the TIE Plan. The finding remains unaffected by the enlargement of the
geographic area. The redevelopment of the District by private enterprise is enhanced in its sustainability
by private development within the Redevelopment Project Area and the additional employment
opportunities provided within the Project Area.
FINDING 3,03. The redevelopment activities proposed by the Redevelopment Plan, as modified
by the Redevelopment Plan Modification,conform to the general plan for the development or
redevelopment of the City as a whole. The redevelopment activities are compatible with the City's
zoning ordinances and other related regulations and encourage efficient use of existing infrastructure as
set forth in the City's Land Use Plan.
SUPPORTING STATEMENT: The proposed improvements in the area added by the amendment
were considered by the Planning Commission at a meeting held on Mayl3,2013. The Planning
Commission found that the modification to the redevelopment plan conform to the general plan for the
development or redevelopment of the City as a whole.
FINDING 3.04. The Redevelopment Plan,as modified by the Redevelopment Plan Modification,
provides an outline for the development or redevelopment of the area and is sufficiently complete to
indicate its relationship to definite local objectives as to appropriate land uses and to indicate general land
uses and general standards of development or redevelopment.
SUPPORTING STATEMENT: The amendment to the Redevelopment Plan enlarges the
geographic area of the Redevelopment Project Area No. 5. The improvements proposed to be constructed
in the area of the amendment provide the necessary infrastructure to achieve local objectives of the
development of the land in the southeast quadrant of Crosstown Highway and Shady Oak Road. The
proposed development of this land has been agreed to between the City and the owner and memorialized
in a development agreement setting out the general and specific land use and general and specific
standards for the development of the property.
Dated: June 3, 2013
Janet Jeremiah, eirector of Community Development
Robert Ellis, Director of Public Works