23-049 (06-20) Adopt TIF District Valley Square RedevelopmentDocuSign Envelope ID: E7CC782F-D8C6-4800-B52F-0248235080AA
RESOLUTION NO. 23-049
A RESOLUTION ADOPTING A TAX INCREMENT FINANCING PLAN FOR A TAX INCREMENT
(RENEWAL AND RENOVATION) DISTRICT WITHIN VALLEY SQUARE REDEVELOPMENT PROJECT
AREA
WHEREAS, The City Council in and for the city of Golden Valley (the "City") established
the Housing and Redevelopment Authority in and for the City of Golden Valley (the "HRA") to
promote development and redevelopment within the community; and
WHEREAS, The HRA has all the powers and authority of a housing and redevelopment
authority under Minnesota Statutes, sections 469.001 through 469.047 (the "HRA Act");
WHEREAS, In response to a proposal to redevelop the properties generally located east
of Wisconsin Avenue North, south and west of Golden Valley Road and north of Golden Valley
Drive on which exist one structurally substandard building and one building in need of substantial
renovation or clearance, the HRA determined to establish a tax increment financing district; and
WHEREAS, The HRA and the City investigated the facts and caused to be prepared a tax
increment financing plan (the "TIF Plan") for Tax Increment Financing (Renewal and Renovation)
District within Valley Square Redevelopment Project Area (the "TIF District"), describing the
assistance which may be provided to encourage redevelopment within the Redevelopment
Project Area; and
WHEREAS, All actions required by law to be performed prior to the adoption of the TIF
Plan and establishment of the TIF District have been performed, including a finding by the City's
Planning Commission on May 22, 2023 that the TIF Plan is consistent with the City's
comprehensive plan and approval of the TIF Plan by the HRA at its meeting on June 20, 2023; and
WHEREAS, The HRA and the City notified Hennepin County and Independent School
District No. 270 of the public hearing on the TIF Plan to be held before the City Council on June
20, 2023; and
WHEREAS, The TIF Plan is contained in a document entitled "Tax Increment Financing Plan
for Tax Increment Financing (Renewal and Renovation) District within Valley Square
Redevelopment Project Area", prepared by Baker Tilly Municipal Advisors, LLC dated May 16,
2023 and on file at Golden Valley city hall; and
WHEREAS, The City Council has fully reviewed the contents of the TIF Plan and has on
June 20, 2023, conducted a public hearing thereon at which the views of all interested persons
were received orally or in writing.
NOW, THEREFORE, the City Council finds and determines:
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It is necessary and desirable for the sound and orderly development of the Redevelopment
Project Area and of the community as a whole, and for the protection and preservation of the
public health, safety, and general welfare, that the authority of the TIF Act be exercised by the
HRA and the City to establish the TIF District.
It is the reasoned opinion of the City, that the redevelopment proposed in the TIF Plan for the TIF
District could not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value of the land within the TIF
District 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
redevelopment, after subtracting the present value of the projected tax increments for the
maximum duration of the TIF District, and that therefore the use of tax increment financing is
necessary to assist the project.
The expenditures proposed to be financed through tax increment financing are necessary to
permit the HRA and the City to realize the full potential of the Project Area in terms of
development intensity, diversity of uses and tax base and to facilitate the redevelopment of land
to provide additional market rate and affordable housing, all of which is consistent with the City's
comprehensive plan.
The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a
whole, for redevelopment of the Redevelopment Project Area by private enterprise. One
principal building within the TIF District is structurally substandard, the second building is in need
of substantial renovation or clearance and parcels representing 100% of the area within the TIF
District are improved within the meaning of Minnesota Statutes, section 469.174, subd. 10.
The TIF Plan conforms to the general plan for the development and redevelopment of Golden
Valley as a whole. The developer's plans to add housing and increase the mix of uses in the Valley
Square Redevelopment Project Area is fully consistent with the City's comprehensive plan.
The City has relied upon the written representations made by the developer, review of the
developer's proforma and other financial information by Baker Tilly Municipal Advisors, LLC, the
opinions and recommendations of City staff, and the personal knowledge of the members of the
City Council in reaching its conclusions regarding the TIF Plan and the establishment of the TIF
District. The City also reviewed a Property Condition Assessment report prepared by LHB dated
March 31, 2023.
The TIF District is a renewal and renovation tax increment financing district within the meaning
of Minnesota Statutes, section 469.174, subd. 10a. In preparing its report, LHB reviewed the
property to be included within the TIF District regarding the condition of the principal buildings
located thereon. The report, which was prepared after an interior and exterior inspection of the
buildings, establishes that one building is structurally substandard, the second building requires
substantial renovation or clearance and that parcels representing 100%of the area are improved.
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Accordingly, that the TIF District qualifies as a renewal and renovation tax increment district. A
copy of this report will be retained at city hall for the duration of the TIF District.
Additional reasons and supporting facts regarding the findings required by Minnesota Statutes,
section 469.175, subd. 3 are included in Section 1 Findings and Need for Tax Increment Financing
of the TIF Plan and are hereby incorporated into this resolution as if fully set forth herein.
NOW THEREFORE, BE IT RESOLVED, BY THE CITY OF GOLDEN VALLEY, MINNESOTA that
the TIF Plan for the TIF District is hereby approved, as adopted by the HRA. The TIF District is
hereby established.
NOW THEREFORE, BE IT FURTHER RESOLVED, BY THE CITY OF GOLDEN VALLEY,
MINNESOTA that The Executive Director of the HRA is authorized and directed to instruct Baker
Tilly Municipal Advisors, LLC to transmit a certified copy of this resolution together with a
certified copy of the TIF Plan to Hennepin County with a request that the original tax capacity of
the property within the TIF District be certified to the HRA pursuant to Minnesota Statutes,
section 469.177, subd. 1 and to file a copy of the TIF Plan with the Minnesota Department of
Revenue.
Passed by the City of Golden Valley, Minnesota this day of June 20, 2023.
-- DocuSigned
Spa M
Shepard M. Harris, Mayor
ATTEST:
r— DocuSigned by:
LC2F66C0073F D
Theresa J. c yma, City Clerk
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