The URL can be used to link to this page

10-09-12 HRA Agenda Packet AGENDA Regular Meeting of the Housing and Redevelopment Authority Golden Valley City Hail 7800 Golden Valley Road Council Chamber October 9, 2012 6:30 pm Paqes 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes - July 10, 2012 and Special Workshop - July 10 and 2-5 September 11, 2012 4. Appraval of Bills: Reimbursement of City Expenditures 6 City of Golden Valley $2,987,657.15 TOTAL $2.987,657.15 Bill Summarv: General Fund $1,24Q.00 Golden Hills Tax Increment Fund $2,986,000.00 Golden Hills Capital Project Fund $ 417.15 TOTAL 2 987,657.15 5. Receipt of September 2012 Financial Reports 7-10 6. Public Hearing - Adoption of Redevelopment Plan for Highway 55 West 11-49 Redevelopment Project Area and Tax Increment Financing District No. 1 (Renewal and Renovation) A. Resolution 12-05, Redevelopment Plan for Highway 55 West Redevelopment Project Area B. Resolution 12-06, Resolution Approving Tax Increment Financing Plan District No. 1 7. Adjournment This document is available in a(ternate formats upon a 72-hour request,Please call 7b3-593-8006 (TTY: 763-593-3968)to:make a request. Examples of alternate formats ' may include large print, electronic, Braille, audiocassette, etc. HOUSING' AND REDEVELOPMENT AUTHORITY July 10, 2012 Pursuant to due call and notice thereof, a regular meeting of the Housing and Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was held at 7800 Golden Valley Road in said City on July 10, 2012 at 6:30 pm, in the City Council Chambers. The following members were present: Chair Paula Pentel and Commissioners Joanie Clausen, Mike Freiberg, Shep Harris and DeDe Scanlon. Also present were HRA Director Thomas Burt, Assistant HRA Director Jeanne Andre, City Attorney Allen Barnard, Finance Director Sue Virnig and Administrative Assistant Lisa Wittman. Approval of Aqenda MOVED by Scanlon, seconded by Freiberg and motion carried unanimously to approve the agenda as submitted. Approval af Minutes -April 10, 2012 Reqular HRA Meetinq and Mav 8, 2012 Special Meetinq � MOVED by Freiberg, seconded by Scanlon and motion carried unanimously to approve the April 10, 2012 Regular HRA minutes and the May 8, 2012 Special HRA minutes as submitted. Approval of Bills MOVED by Scanlan, seconded by Glausen and motion carried unanimously to approue the bills as submitted. Receipt of June 2012 Financial Reports MOVED by Freiberg, seconded by Clausen and motion carried unanimously to receive and fi(e the June 2012 Financial Reports. Lease of HRA Propertv to D'Amico Caterinq —Amendment Extendinq Lease MOVED by Harris, seconded by Clausen and motion carried unanimously to extend the lease of HRA property to D'Amico catering. The meeting was adjourned at 6:36 pm. Paula Pentel, Chair ATTEST: Lisa Wittman, Administrative Assistant HOUSING AND REDEVELOPMENT AUTHORITY Special Workshop Meeting July 10, 2012 Pursuant to due call and notice thereof, a special workshop meeting of the Housing and Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was held at 7800 Golden Valley Road in said City on July 10, 2012 at 10:20 pm, in the City Council Conference room. The following members were present: Chair Paula Pentel and Commissioners Joanie Glausen, Mike Freiberg, Shep Harris and DeDe Scanlon. Also present were HRA Director Thomas Burt, Assistant HRA Director Jeanne Andre, City Attorney Ailen Barnard, Finance Director Sue Virnig, Director of Planning and Development Mark Grimes, City Planner Joe Hagebaom and Administrative Assistant Lisa Wittman. Possible HRA Focus Areas Chair Pentel reviewed the possible HRA focus projects that were sent to them as part of the agenda packet. She added that the goal of this exercise is to come to an agreement on areas they would like to focus on for development or redevelopment. She stated that she is interested in having housing at the northeast corner of Douglas Drive and TH 55. Commissioner Freiberg indicated an interest in developing the northeast corner of TH 55 and Douglas Drive, but did not suggest a use. Commissioner Clausen said she is interested in working with an existing business that could help bring in a new cammunity center or fitness center, not at any specific location. Commissioner Harris said he thinks the focus should continue to be on the I-394 Corridor and the Douglas Drive/TH 55 intersection along with other areas all along Highway 55. He stated that he would like to be more proactive in creating a marketing pian in order to attract business and housing to Golden Valley. He would also like to have a visitor's bureau and an action plan ready to go. Commissioner Scanlon said she would like to see clustered senior housing on Winnetka Avenue between Rhode Island south of TH 55. The Commissioners discussed future senior housing expectations and how existing senior housing facilities will need to adapt. Grimes said staff cQUld research what other cities have done and how they've helped seniors move into the next transition of housing. Burt stated that items will have to be prioritized and consideration needs to be given as to how projects will be funded. Pentel suggested they consider this item for a while longer and then get together with the Planning Commission possibly in September to have another discussian with them. Andre said in the meantime she would send the Commissioners some assignments regarding projects in other communities that could serve as a basis for further discussion. Staff will try and develop materials for a self-guided tour commissioners could visit during August. The meeting was adjourned at 10:55 pm. Housing and Redevelopment Authority July 10, 2012 Page 2 Paula Pentel, Chair ATTEST: Lisa Wittman, Administrative Assistant HOUSING AND REDEVELOPMENT AUTHORITY Special Workshop Meeting September 11, 2012 Pursuant to due call and notice thereof, a special workshop meeting of the Housing and Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was held at 7800 Golden Valley Road in said City on September 11, 2012 at 6:30 pm, in the City Council Conference room. The following members were present: Chair Paula Pentel and Commissioners Joanie Clausen, Mike Freiberg, Shep Harris and DeDe Scanlon. Also present were HRA Director Thomas Burt, Assistant HRA Director Jeanne Andre, Finance Director Sue Virnig, Directvr of Planning and Development Mark Grimes and Administrative Assistant Lisa Wittman. Public Improvements - Tiburon Proiect - 55 West Area Chair Pentel explained that the purpose of this workshop is to discuss whether or not the HRA is willing to support creating a tax increment renewal and renovation district to help fund the public improvements surrounding the proposed Tiburon apartment project on Olson Memorial Highway. Burt stated that there are several older and vacant properties in this area that are prime for redevelopment. He explained that a Tax Increment Finance (TIF) district for this area will help pay for sidewalks, street lights, bike lanes and improvements to the TH 55 slip ramp. He noted that this request has been initiated by staff and not the developer of the Tiburon project. The Commissioners reviewed a map of the proposed TIF area and discussed their concerns including other ways to pay for the possible public improvements, if creating this TIF District will affect the creation of TIF Districts in other areas, if creating this TIF district would have a negative impact on the City's debt load and if making the public improvements would spur further redevelopment in the area. After discussion, the consensus from the Commission was to move forward with th� proposed TIF district. Burt said he would bring this item to the next HRA meeting. The meeting was adjourned at 7 pm. Paula Pentel, Chair ATTEST: Lisa Wittman, Administrative Assistant ��'� �� Housing and Redevelapment Authority 763-593-8002/763-593-8109(fax} Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting Qctober 9, 2012 Agenda Item 4. Reimbursement of City Expenditures Prepared By Sue Virnig, Finance Director Summary As of September 30, 2012 the following expenditures were paid by the City on various check registers and need to be reimbursed by the HRA: Check City Expenditures: Amount Number 1000 Best & Flanagan (June Legal) $640.00 118852 1000 Best & Flanagan (July Legal) 400.00 112266 1000 Wilson Development (Globus reloca#ion)* 117.15 112628 1000 Best & Flanagan (August Legal)($300-Globus Deposit)* 500.00 112627 City of Golden Valley (Golden Hills Debt Service Payment) 2,986,0OO.OQ $2,987,657.15 HRA Expenditures: 9000 Genera) Fund $1,240.00 9160 Golden Hills Tax Increment Fund 2,986,000.00 9280 Golden Hills Capital Projects* 417.15 ---------------------------------� $2,987,657.15 *Asterisk items are reimbursed by deposits held for developers. Recommended Action Motion to approve reimbursing the City of Golden Valley$1,657.15 (check#4049) and a transfer from HRA to the City of Golden Valley on November 30 for$2,986,000 for expenditures incurred. ��Y ��^ ✓ Ho sin and Red velo ment Authorifi u � � r Y 763-593-8002/763-593-$109(fax) Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 9, 2012 Agenda Item 5. Receipt of September 2012 Financial Reports Prepared By Sue Virnig, Finance Director Summary Attached is the September 2012 Financial Reports for Housing and Redevelopment Authority (HRA) review. Staff will address questions from the HRA before or at the meeting. Attachments • HRA General Fund Budget Report (1 page) • HRA Tax Increment District Projections for Golden Hills Tax Increment Funds (1 page) • HRA 2012 Capital Project Funds Report (1 page) Recommended Action Motion to receive and file the September 2012 HRA Financial Reports. HRA of Golden Valley General Fund September 2012 Budget Report Percentage Of Year Completed 75% Over % Of 2012 July-Sept YTD (Under) Budget Revenue Budget Actual Actual Budget Received Transfer from TIF Funds: Golden Hills 159,000 0.00 159,000.00 0.00 100.00% interest Earnings (3) Q 0.00 0.00 0.00 Fund Balance 0 0.00 0.00 0.00 Totals $159,000 0.00 159,000.00 0.00 100.00% Over % Of 2011 July-Sept YTD (Under) Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1) $6,000 1,240.00 4,006.20 (1,993,80) 66.77% Audit 12,000 0.00 12,000.00 0.00 100.00% City Overhead (2) 140,000 0.00 140,000.00 0.00 100.00% Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00% Totals $159,000 1,240.00 156,006.20 (2,993.$0) 98.12% Notes: (1) Includes August to date billings from Best & Flanagan. (2) Transfers were made in June 2012. M Q l)NOI� CO O � d' N � N fN � � N (D c� O O N � � (D lf') � � 00 � 00 �- �N td') M ff} `�" �' 6F} O OQO O Oi`Of� M I�- O O f� f� O •- I� O 00 00 � tn O I�- I� O � 00 � N � N � N O 00 00 � � Cfl N 00 N O �- � O C7 M lf') � � � � f�- I'�- O CO N N �- I`+ tn � � � � N O� d' � � r- �N � 00 � Et} "' `'-� �} b9 00 OCflCO O Otf� O � O 'd' � O f� I� O �- �- �.C) I� O � O O I� I� O f� � I� M t.f) tf') M d' OMM � N00 � � N 00 � � N M N � � � N � � � O N 00 d' d' •..� •.��N N � O fA � b�} r- � � O �- r- O r- r- O N 0� f� 00 ONN O � I�- � � 6� r- N OCOCfl O � � N00 O � N � Od' � � I� C4Nt.f) '� M � l� ONN � ON �t' M d' T'- O �- (V N �- d' s- N � b"' r N CO � � .. �....� �- OQ M ff} `-'" Ef} r � � M N N � o a v � +� .n �.� � � cu a� c� m � � � .O U � U � ,�,, U R y C� C C� +L+ o C o Q�j y � �N V Q ^ � N � o � � M � � �� •� sN- � � � � � a � v � m � m � 'a � � °� o °� _ c m c ~ � � °� � _ �� = c m � � c u O a� � � � � � � � = t� r- ,�, o � tn i y � � � � � �j � V i L. � (t�� {,() � C r.• C i�.� � V �✓ � C C � • � � � X N X = � � � � U � (� � � � � p� � � C m = rn tn Q N � N � � � N N � � i C i = V � X � C �C� p — I— U cQ N 3 O cd Rf ca N C (9 = � � � N w � = � � H I— F- � '� o y � � � c"-'a nrY = °i c°n� m ¢ Qw a � � a� a� � � � d � � � � c4 � c U U � � � W � F�- W F- � N �NNF- m HRA Of Golden Valley Capital Project Funds 2012 Financial Report 9280 9250 Golden North Hills Wirth #3 Cash Balance @ 7/01/12 $286,378.24 $0.00 Add: Receipts: Interest Lease revenue 6.00 Increment on Deposit 0.00 Less: Expenditures: Gity of Golden Valley (1) 0.00 0.00 Transfer to TIF Cash Balance @ 09/30/12 $286,384.24 $0.00 (1) Breakdown an City Expenditures Memo �1�� C�� Housing and Redevelopment Authority 763-593-8Q02/763-593-8109 ifax} Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 9, 2012 Agenda Item 6 A. and B. Public Hearing-Adoption of Redevelopment Plan for Highway 55 West Redevelopment Project Area and Tax Increment Financing District No. 1 (Renewal and Renovation) Prepared By Jeanne Andre, Assistant Director, Housing and Redevelopment Authority Summary The Housing and Redevelopment Authority (HRA) and City Council have discussed making public improvements in the area of 7th Avenue North and Golden Valley Road between Boane Avenue North and Mendelssohn Avenue ta encourage revitalization of nearby private praperties. Consideration of ways to finance these desired public improvements has become more urgent given the recent rezoning of two parcels to high density residential and the proposed development of a 142-unit apartment at this site. The proposed new development particularly demands safer access to Highway 55 at Decatur Avenue North and improved pedestrian safety for the anticipated new residents. The proposed Highway 55 West Renewal and Renovation Area Plan (Redevelopment Plan) outlines the identifies the statutory authority, highlights current conditions in the project area, outlines anticipated improvements, and identifies goals, objectives, policies and administration for the proposed project area. The Highway 55 West Renewal and Renovation Tax Increment No. Financing Plan for District No. 1 (Financing Plan) outlines the anticipated income created by the new district and planned expenditures. A public hearing to present the Redevelopment Plan and Financing Plan is set for October 9, 2012. Following the hearing the Housing and Redevelopment Authority will consider adopting both plans and forwarding them to the City Council for consideration. Prior to consideration by the City Council, the Planning Commission must review the Plans to determine if they are in accord with the City's Comprehensive Plan. Hennepin County and School District 270 must also be allowed to comment on the Plans. If the Plans are forwarded by the HRA, the Council would hold another public hearing, probably in December, with the additional input from the Planning Commission, County and School District, before considering their adoption. If the Financing Plan is approved, state statutes allow the district to continue for 15 years. However the City could choose to close the district when increment covering the expenditures has been received. The Financing Plan creates an overall budget, but the City Council is still required to authorize each project to be financed by the TIF. Attachments • Resolution 12-05, Resolution Adopting the Redevelopment Plan for the Highway 55 West Redevelopment Project Area (13 pages) • Resolution 12-06, Resolution Adopting the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No. 1 (Renewal And Renovation) (24 pages) Recommended Action • Motion to adopt Resolution 12-05, Resolution Adop#ing the Redevelopment Plan for the Highway 55 West Redevelopment Project Area. • Motion to adopt Resolution 12-06, Resolution Adopting the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No. 1 (Renewal and Renovation). Resolution 12-05 October 9, 2012 Commissioner introduced the following and moved its adoption: RESOLUTION QF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, HENNEPIN COUNTY, MINNESOTA ADOPTING THE REDEVELOPMENT PLAN FOR THE HIGHWAY 55 WEST REDEVELOPMENT PROJECT AREA BE IT RESOLVED by Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota (the "Authority"), as follows: 1. Project Plan Review. The Authority has reviewed the Redevelopment Plan (the "Project Plan") for the Highway 55 West Redevelopment Project Area (the "Redevelopment Project") attached hereto. 2. Adoption. The Project Plan is hereby adopted, subject to approval by the Planning Commission and the City Council as provided in Section 4, based on the findings in Section 3 hereof. 3. Findin�s for Approval of ProLect Plan. The Authority hereby makes the following findings: 3.01. The Project Plan proposes that the Authority undertake certain redevelopment activities for the purpose of encouraging redevelopment of properties in the Redevelopment Project. 3.02. The land in the Redevelopment Project would not be made available for development without the financial aid to be sought since private developers could not economically develop the Redevelopment Project without the proposed redevelopment activities. 3.03. The Project Plan will afford maximum opportunity, cansistent with the needs af the City as a whole, for the redevelopment of the District by private enterprise. The redevelopment activities contemplated in the Project Plan would help to retard blight in the Redevelopment Project and provide an increase in employment and housing opportunities in the City and enhance the tax base of the City and overlapping taxing jurisdictions. 3.04. The redevelopment activities proposed by the Project Plan 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. 3.05. The Project Plan 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. 4. Transmittal. The Authority does hereby transmit the Project Plan to the Golden Valley Planning Commission to affirm the findings of the Authority in Section 3.04, and to Golden Valley City Council for approval after the same has been considered by the Council subsequent to a public hearing to be held in accordance with Minnesota Statutes, Chapter 469. 5. Filin . Following approval by the City Council, the Director is hereby authorized and directed to file the Project Plan with the Commissioner of the Minnesota pepartment of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4a. Paula Pentel, Chair ATTEST: Thomas D. Burt, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and her signature attested by the Executive Director. Redevelopment Plan for Highway 55 West Redevelopment Area Golden Valley, Minnesota Golden Valley Housing and Redevelopment Authority Approval: October 9, 2012 Planning Commission Review: Approved by the City Council: i TABLE OF CONTENTS Pa e s Introduction.........................................................................................................................3 Background..........................................................................................................................3 PublicImprovements...........................................................................................................3 Statement of Need and Public Purpose, Statutory Authorization ......................................4 Statementof Objectives......................................................................................................4 Itemized Goals and Objectives............................................................................................5 Policies ................................................................................................................................6 Boundaries ofthe Project Area and Redevelopment Opportunities..................................7 Definitions............................................................................................................................8 Administration of Redevelopment Project..........................................................................9 Maintenance and Operations..............................................................................................9 Paymentof Public Costs..................................................................................................9 Property Acquisition and Proposed Reuse .....................................................................9 Relocation .....................................................................................................................10 Environmental Controls; Land Use Regulations............................................................10 Park and Open Space to be Created.............................................................................10 Amendments.................................................................................................................10 Mapof the Project Area....................................................................................................11 - ii - Introduction In the 1970s the City took the initiative to create a mixed-use, walkable downtown centered at the historic village crossroads at Galden Valley Road and Winnetka Avenue. This area has many community resources, including retail destinations, restaurants, the library, the post office, and City Hall. Recently interest has grown in connecting the area west of Boone Avenue to this urban core. The goal is to make better and safer connections for both pedestrians and vehicles and provide better access to transit stops. It is anticipated that public improvements that improve vehicle and pedestrian safety will promote private redevelopment in the area. Recent rezoning of two parcels at 9220 and 9130 Olson Memorial Highway to high-density housing is the immediate impetus to establish a new Highway 55 West Renewal and Renovation Area (Project Area). A developer has proposed the construction of a 142-unit apartment building, adding many new residents to the area and spurring the need to create improved transportation linkages. This Plan will define the geographic area of proposed improvements, outline existing conditions, identify possible improvements, and set goals and objectives and policies that will guide projeets as they are implemented. The proposed Renewal and Renovation Area includes parcels on the north and south side of Golden Valley Road west of Decatur Avenue North to 9400 Golden Valley Raad and parcels on the south side of 7th Avenue North between Boone Avenue North and Qecatur Avenue North (See Map, page 11). Background The Project Area has a wide range of land uses and building types, including 24 parcels and 21 buildings, from 12 to 86 years old. When parcels in the Project Area were originally developed, Golden Valley Road served as the primary east-west arterial roadway in the area, which originally contained farmsteads. In fact, a farmhouse built in 1926 still exists on the north side of Golden Valley Road. Commercial Uses, which included a bowling alley, restaurants and office uses devefoped over time. Single and multifamily housing now coexist with the commercial uses. When Olson Memorial Highway (Highway 55) was constructed in the 1960s, some of the existing uses ended up with frontage an both Highway 55 and Golden Valley Raad and the local street system was truncated. The unusual shaped lots, highway orientation and truncated Iocal street system create a challenge for development. The Valley Square Redevelopment Area east of the Project Area has been redeveloped with a mix of uses, but has a more urban pedestrian orientation that helps integrate the uses. The goal of the Project Area is to develop public improvements that will support the current range of land uses and encourage new development, including new high-density residential housing now proposed for the area. Public Improvements Public improvements proposed in the area include improvements to the Highway 55 access/exit to Decatur Avenue North, sidewalks and lighting to improve pedestrian safety, burial of overhead electrical lines, addition of regional storm water facilities, and sanitary sewer lining. These improvements are aimed to assist residents from the proposed 142-unit apartment move safely in 3 the area and to foster further development in the area by creating a safe neighborhood environment. Pedestrian safety will also support walking programs promoted by existing local businesses and connect residents and employees of businesses west of Boone Avenue to transit stops on Wisconsin Avenue or Winnetka Avenue. Statement of Need and Public Purpose, Statutory Authorization The Housing and Redevelopment Authority (HRA) finds there is a need for development within the City and the Project Area in order to provide employment and housing opportunities, to improve the local tax base, and to improve the general economy of the City and the State. The economic security of the people in the City depends upon proper development of property that meets any one of a number of conditions, including properties with values too low to pay for the public services required or rendered and properties where lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The HRA finds that in many cases, such property cannot be developed without public participation and assistance in various forms, including property acquisition and/or write-down; proper planning; the financing of development costs associated with clearance, grading, and soils correction; and the making of various other public and private improvements necessary for development. in cases where the development of property cannot be done by private enterprise alone, the HRA believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The HRA finds that in certain cases, property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. Overall Objectives The HRA seeks to achieve one or more of the following objectives with respect to the Project Area, as the Authority may deem appropriate and necessary: • promote and secure the prompt development of property within the Project Area, such property which is not now in its most productive use, in a manner consistent with the Comprehensive Plan of the City, thus realizing Comprehensive Plan, land use, and tax base goals • assist development in the Project Area through the acquisition or write-down of certain interests in property which is not now in productive use or in its highest and best use, to make or defray the cost of soil corrections or site improvements on said property, and to canstruct or reimburse for the construction of public improvements and other facilities on or for the benefit of said property, thereby promoting and securing the development of other land within the Project Area 4 • secure the increase and availability of rental housing property for individuals and families of low to moderate income within the Project Area • secure the increase of industrial and commercial property subject to taxation within the Project Area • promote and secure additional employment opportunities within the City and ta prevent the loss of existing employment opportunities, thereby preventing the loss of valuable human resources • To provide funding for an ongoing development strategy and to prioritize the use of available resources • implement and revise from time to time, as may be deemed necessary or desirable, a consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis • employ any of the powers of the Authority for the benefit of the Project Area in such cases and upon such terms as the Authority may deem appropriate • construct ar acquire facilities deemed desirable for the development of the Project Area Itemized Goals and Objectives To achieve its mission of structured redevelopment, this Plan has identified six goals with related objectives to encourage cohesive planning and structured renewal within the area. It then outlines policies that will help to achieve the goals and objectives. Goal 1—Improve vehicle and pedestrian access Objectives • Improved access/exit from Highway 55 to Decatur Avenue North • Added pedestrian and non-motorized transportation facilities • Improved connections to the Luce Line Regional Trail Goal 2— Redevelop obsolete properties Objectives • Blighted, functionally obsolete, and/or economically unsustainable buildings removed • New uses compatible with existing uses • Maximized development density along Highway 55 Goal 3—Create jobs and life-cycle housing Objectives • Increased high-paying jobs • Housing stock that is maintained or improved • Higher density housing 5 • Affordable, zero crime, housing • Commercial uses that serve the community Goal 4— Require design that is sustainable and aesthetically pleasing Objectives • Enhanced community identity through features that reflect Golden Valley • Visually attractive development that complements its surroundings • Buildings constructed with environmentally sustainable 'green building' practices (development that meets environmental criteria set forth by Leadership in Energy and Environmental Design (LEED) and the United States Department of Energy) • Active living criteria included in design • Undergrounded utilities • Signage and wayfinding features to connect the area to downtown Golden Valley and the Luce Line Trail Goal 5—Protect the environment Objectives • Wetlands that are protected and enhanced • Land free of soil and wetland contamination • Arborous environments • Natural features retained and native vegetation (re)established � Goal 6— Maintain a regional framework Objectives • Growth compatible with the Metropolitan Council development framework • Public infrastructure designed in cooperation with Hennepin County and the Minnesata Department of Transportation • Participation in grant programs available through Hennepin County, the Metropolitan Council and other agencies • A positive relationship with surrounding communities and governmental agencies • Continued participation in cooperative traffic management strategies • Improved transit options Policies land Use The City will study planned land uses to determine the need or desirability of individual parcel or area-wide comprehensive plan or zoning amendments to accommodate desired land uses. The City and HRA will assure that its review processes, zoning, and building regulations will promote desired development projects. The City will assure that new uses in the redevelopment area are compatible with existing development and the City's Land Use Plan. 6 The City and HRA will review existing properties in the area to cansider their long term viability and/or options for alternative uses. Land use plans will promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council's regfonal growth strategy. Financing The City and HRA will identify criteria to target redevelopment funds such as tax increment financing, tax abatements, Livable Communities, Community Development Block Grants and other funding made available by the Legislature or other agencies or governmental units. The City and HRA will consider providing public assistance to redevelopment projects that serve a substantial public purpose, remove blight, or mitigate contamination. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be paired with other funding options such as assessments, based on the Golden Valley Special Assessment Policy. The City will consider franchise fees and utility surcharges to underwrite the cost af utility and infrastructure upgrades. Design and Environmental Standards The City will promote best practices ta meet the highest environmental standards. The City and HRA will identify approaches and/or incentives to promote a corridor beautification program. This program will include both public and private components. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates of this plan. Transportation The City will work with Metropolitan Transit to monitor transportation needs of area residents and workers and identify ways to improve transportation services, including improving transit routes and working with area businesses to develop transportation management plans. Boundaries of the Project Area and Redevelopment Oppartunities The property within the City which constitutes the Project Area includes the property contained within the baundaries described below and is illustrated on the attached map. Area 1A South of Golden Valley Road, north of Highway 55, and west of Decatur Avenue North This area currently contains several small office buildings, the former bowling alley, and Valvoline Rapid Oil Change. This area is very visible from Highway 55. The Tiburon, a six-story, 142-unit apartment building is proposed to be constructed on the site of the former bowling alley and the 7 adjacent office building, which were recently rezoned to High-Density Residential. The remainder of the Area 1A could remain commercial or move to residential uses. Area 16 � South of Golden Valley Road and north of Highway 55,where it exits to Highway 169. This area is located directly north of the Highway 169/Highway 55 interchange and is zoned Commercial. National Camera Exchange is currently located at this site. It has relocated from another site in the Area and may wish to further expand in the future. Area 2 Narth of Golden Valley Road from Highway 169,east halfway to Decatur Avenue North Two office buildings,two single family homes, and a five-building apartment complex (Trentwood, 54 units) are located in this area. Trentwood is zoned medium-density residential and the rest of the parcels are zoned Business and Professional Offices. The easterly office building and single family homes are currently listed for sale. If the parcels are joined and redeveloped, residential or institutional uses on those properties would complement the existing and proposed residential development in the area. Alternately, if redeveloped as Business and Professional Offices, the site would relate to the office use to the west and north. Area 3 North of Golden Valley Road from Decatur Avenue North,west to the mid-block This area includes Red Lobster Restaurant and two fast food restaurants and is zoned Commercial. While this area is appropriate for continued long-term commercial and retail use, it may develop more densely in the future if the current uses end. Golden Valley Road serves as the frontage road for Highway 55 in this area. The road currently ends at Decatur Avenue North, with frontage road signage directing drivers north on Decatur Avenue and east on 7t"Avenue. It may be beneficial to realign the frontage road in this area to provide a continuous roadway and eliminate confusing turning movements. The current access to Highway 55 at Decatur does not provide standard,save vehicular movement. Area 4 North of Highway 55 west of Boone Avenue North, south of 7th Avenue,and east of Decatur Avenue North This area contains two restaurants, an automotive service shop, and a vacant parcel, all of which are zoned Commercial. With its highway visibility and proximity to the Boone Avenue/Highway 55 intersection, this area could redevelop into more intense uses, particularly if a number of the parcels are consolidated. Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the Housing and Redevelopment Authority of the City of Golden Valley. "C�" means the City of Golden Valley, Minnesota, also referred to as a "Municipalitv". 8 "Citv Council" means the City Council of the City. "County" means Hennepin County, Minnesota. "Governing Body" means the Board of Commissioners of the Authority. "HRA Act" means the Minnesota Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 through 469.047, both inclusive. "Land Use Re�ulations" means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the use or development of land in the Project Area, including but not limited to environmental, platting, zoning and building code laws, regulations and ordinances. "Proiect Area" means the geographic area of the Highway 55 West Redevelopment Project Area. "Public Costs" means the costs of land acquisition, public and site improvements, repayment of debt service on tax increment bonds, and other eligible costs as set forth in the Redevelopment Plan and Tax Increment Financing Plan(s). "Redevelopment Plan" means the Redevelopment Plan for the Project Area. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.179, both inclusive. "TIF District" means any tax increment financing district presently established or to be established in the future in the Project Area. "TIF Plan" means the respective tax increment financing plan for each TIF district located within the Project Area. Administration of Redevelopment Project Maintenance and Operations Maintenance and operation of the Project Area will be the responsibility of the HRA Director, who shall serve as administrator of the Project Area. Each year the administrator will submit to the Governing Body the maintenance and operation budget for the following year. The administrator will administer the Redevelopment Plan pursuant to the provisions of the HRA Act, provided, however, that such powers may only be exercised at the direction of the Governing Body. No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Governing Body. Payment of Public Costs It is anticipated that the Public Costs of the Project Area will be paid primarily from tax increments or proceeds of tax increment bonds. Such costs are identified in the TIF Plan(s) for the corresponding TIF District(s) located within the Project Area. The Authority reserves the right to 9 use other sources of revenue legaliy applicabie to the Project Area to pay for such Public Costs including, but not limited to, special assessments, federal or state funds, and investment income. Property Acquisition and Proposed Reuse The HRA may acquire property, or appropriate interest therein, within the Project Area as it �deems necessary or desirable to assist in the implementation of the Redevelopment Plan. The Redevelopment Plan contemplates that the HRA may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property, the Governing Body will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the HRA to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the HRA is a party. Relocation Any person or business that is displaced as a result of the Redevelopment Plan will be relocated in accordance with the provisions of the HRA Act and other applicable state law. Environmental Controls; Land Use Regulations All HRA actions, public improvements, and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations. Park and Open Space to be Created Park and open space created within the Project Area will be done so in accordance with the zoning and platting ordinances of the City. Amendments The HRA reserves the right to alter and amend the Redevelopment Plan subject to the provisions of state law regulating such action. 10 � o o ° °o ^ `� �� 0 � ':, � ��' �� -------��i��-�`��i .° d � � 0 o ^ ^ �g, � b m�o a.r�� N��. �r � c�� a�h. p J O� U�.Q � � �m o n¢d �' �w ;€�� ,� h?eQ 0 0 ° W � N O .s..... � .,;`�,X. N � � n 4'�'�:s. � � � Q R Q � Q � � � � a�� .�n�eaaQ �o � � �, � � t� �n� .�n�� , M Q � � �, R N �� O N �"'�^� t7 � N Q O � m � p y�+� � oNi v'°.°i f� O O � �rt � � � p� R � '�� i � a�� Q o �, M � � Q � � *, 0 � o � `� ° � � I�E a,nd' U ! U� Ni � �, . ° � � �, 3 'o `� V„ Q v M � � N L � � "' � � rn '�d ° o � � o � o � ^ � W O rn � � ° ° � 3 a � � � � ° � s � ��`�y � � o� o � � N .+°'" �:.� �� w, � � = W � � �u.N,. ,�;.�+. ' � N �,� �eG� � �o ��i •�,,, '� N M� � � � o o �x o �� N N N � p� O� o> � O �. � O � � � � �g��y q O�i l�� O N ,.� �O ,�, O � O O M � � � � M O) O Q � ^ 07i �F� N b �n�{ u�Q��a�t�� 11 Resolution 12-06 October 9, 2012 Commissioner introduced the following and moved its adoption: RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, HENNEPIN COUNTY, MINNESOTA, ADOPTING THE TAX INCREMENT FINANCING PLAN FOR HIGHWAY 55 WEST TAX INCREMENT FINANCING DISTRICT NO. 1 (RENEWAL AND RENOVATION) BE IT RESOLVED by Housing and Redevelopment Authority in and for the City of Galden Valley, Minnesota (the "Authority"), as follows: 1. Financinq Plan Review. The Authority has previously reviewed and approved the Redevelopment Plan (the "Project Plan") for the Highway 55 West Redevelopment Project Area (the "Redevelopment Project") and now has before it a Tax Increment Financing Plan (the "Financing Plan") for Tax Increment Financing (Renewal and Renovation) District No. 1 (the "District"). 2. Adoption. The Financing Plan is hereby adopted, subject to approval by the Planning Commission and the City Council as provided in Section 4, based on the findings in Section 3 hereof. 3. Findings for Approval of the Financing Plan. The Authority hereby makes the following findings: 3.01. The Financing Plan provides the means to finance certain public redevelopment costs of the Redevelopment Project, including the redevelopment activities described in the Financing Plan that benefit the District. The Financing Plan contains a statement of objectives for the improvement of the Redevelopment Project, a statement as to the development program for the District, and a statement of the property within the Redevelopment Project which the Authority intends to acquire. The Financing Plan alsa estimates the public redevelopment costs of the Redevelopment Project, 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 net tax capacity of taxable real property within the District, the captured net tax capacity of the District at completion, and the duration af the District. The Financing Plan also describes and identifies the development activities to be undertaken or expected to be undertaken in the District and all parcels to be included in the District. The Financing Plan further contains alternative estimates of the impact of the propased tax increment financing on the net tax capacities of all taxing jurisdictions in which the District is located. All the captured tax capacity is necessary for the objectives of the District. 3.02. The District consists of a contiguous geographic area within a "project" as defined in Minnesota Statutes, Section 469.174, subdivision 8, and is a proper "tax increment financing district" within the meaning of Section 469.174, subdivision 9. Based on the information in the Financing Plan and representations of the developer, the District contains the following conditions: Parcels consisting of 70% of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; 20% of the buildings are structuraNy substandard; and 30% of the other buildings require substantial renovation or clearance to remove existing conditions, such as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the City. The foregoing conditions are reasonably distributed throughout the geographic area of the District. Therefore, the District qualifies as a "renewal and reno- vation district" within the meaning of Minnesota Statutes, Section 469.174, subdivision 10a. 3.03. The private redevelopment proposed to be encouraged in the Redevelopment Project pursuant to the proposed Project Plan would not, in the opinion of the Authority, 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. Furthermore, in the opinion of the Authority, 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 fram the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Financing Plan. The studies and analyses supporting these findings are identified in the Financing Plan. 3.04. The Financing Plan conforms 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. 3.05. The Financing Plan will 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 redevelopment activities contemplated in the Project Plan would help to retard blight in the Redevelopment Project and provide an increase in employment and housing opportunities in the City and enhance the tax base of the City and overlapping taxing jurisdictions. 4. Transmittai. The Authority does hereby transmit the Financing Plan to the Golden Valley Planning Commission to affirm the findings of the Authority in Section 3.04, and to Golden Valley City Council for approval after the same has been considered by the Council subsequent to a public hearing to be held in accordance with Minnesota Statutes, Chapter 469. 5. Filin . Following approval by the City Council, the Director is hereby authorized and directed to file the Financing Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4a. Paula Pentel, Chair ATTEST: Thomas D. Burt, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and her signature attested by the Executive Director. City of Golden Valley, Minnesota Golden Vailey Housing and Redevelopment Authority Tax Increment Financing Plan for Tax Increment Financing (Renewal and Renovation)District Within Highway 55 West Redevelopment Project Area (Highway 55 TIF Renewal and Redevelopment Project) Dated: October 5, 2012 (Draft) Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM TABLE OF CONTENTS Section Pa e s A. Definitions.......................................................................................................:......................................................1 B, Statutory Authorization..........................................................................................................................................1 C. Statement of Need and Public Purpose.................................................................................................................1 D. Statement of Objectives........................................................................................................................................1 E. Designakion of Tax Increment Financing District as a Renewal and Renovation District.......................................1 F, Duration of the TIF District.....................................................................................................................................3 G. Property to be Included in the TIF District..............................................................................................................3 H. Property to be Acquired in the TIF District.............................................................................................................3 I. Specific Development Expected to Occur Within the TIF District..........................................................................4 J. Findings and Need for Tax Increment Financing...................................................................................................4 K, Estimated Public Costs..........................................................................................................................................5 L. Estimated Sources of Revenue..................................................................................................................:..........6 M. Estimated Amount of Bonded Indebtedness..........................................................................................................6 N. Original Net Tax Capacity..............:.......................................................................................................................6 0. Original Local Tax Rate.........................................................................................................................................6 P. Projected Retainetl Captured Net Tax Capacity and Projected Tax Increment.....................................................7 Q. UseofTax Increment............................................................................................................................................8 R. Excess Tax Increment...........................................................................................................................................9 S. Tax Increment Pooling and the Five Year Rule........................................................................................•..,..,.•..•.9 T. Limitation on Administrative Expenses..................................................................................................................9 U. Limitation on Property Not Subject to Improvements-Four Year Rule..................................................:............10 V. Estimated Impact on Other Taxing Jurisdictions..................................................................................................10 W. PriorPlannedimprovements...............................................................................................................................11 X. DevelopmentAgreements...................................................................................................................................11 Y. AssessmentAgreements.....................................................................................................................................11 Z, Modifications of the Tax Increment Financing Plan.............................................................................................12 AA, Administration af the Tax Increment Financing Plan............................................................................................12 AB. Filing TIF Plan,Financial Reporting and Disclosure Requirements.....................................................................13 Map of the Tax Increment Financing District and Renewal and Redevelopment Project Area................EXHIBIT I AssumptionsReport...............................................................................................................................EXHIBIT II Projected Tax Increment Repo�t............................................................................................................EXH18lT III Estimated Impact on OtherTaxing Jurisdictions Report........................................................................EXHIBIT IV Market Value Analysis Report................................................................................................................EXHIBIT V Redevelopment District Findings....................................................................................:......................EXHIBIT VI Housing and Redevelopment Authority of the City of Golden Vall�y, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they a re used indicates a different meaning: "Authoritv"means the Housing and Redevelopment Authority of the City of Golden Valley. "City„means the City of Golden Valley,Minnesota;also referred to as a"Municipality", "City Council" means the City Council of the Goltlen Valley; also referred to as the'Governing Bod�. "Coun "means Hennepin County, Minnesota. "Redevelopment Proiect Area" means the Highway 55 West Redevelopment Project Area in the City, which is described in the corresponding Redevelopment Plan. "Redevelopment Plan"means the Redevelopment PI an for the Highway 55 West Project Area. "Project Area"means the geographic area of the Redevelopment Project Area. "School DistricY'means Independent School District No, 270, Minnesota. "State"means the State of Minnesota. "TIF AcY'means Minnesota Statutes,Sections 469.174 through 469,1799, both inclusive, "TIF DistricY'means Tax Increment Financing(Renewal and Redevelopment)District No, . "TIF Plan"means the tax increment financing plan for the TIF District(this docu ment). Section B Statutory Authorization See Section B"Statutory Authorization"on page 2 of the Redevelopment Plan for the Project Area. Section C Statement of Need and Public Purpose See Section C"Statement of Need and Public Purpose"on page 3 of the Redevelopment Plan for the Project Area. Section D Statement of Objectives See Section D "Statement of Objectives"on page 2 of the of the Redevelopment Plan for the Project Area. Section E Designation of Tax Increment Financing District as a Renewal and Renovation District Renewal and Renovation districts are a type of tax increment financing district in which the following conditions exists; 1) i) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; ii) 20 percent of the buildings are structurally substandard;and iii) 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as; inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not SPRINGSTED Page 1 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community, 2) the conditions described in clause(1)are reasonably distributed throughout the geographic area of the district For purposes of determining whethe� a building is structurally substandard, whether parcels are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures, or whether noncontiguous areas qualify,the provisions of subd ivision 10, paragraphs(b)through(fl,apply. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above,as well as the entire area must also qualify as a whole, The TIF District qualifies as a renewal and renovation district in that it meets all of the criteria listed in (1) and (2) above. An executive summary of a report prepared by LHB Corporation that tletails the qualifications is included in Exhibit VI, A copy of the entire report with supporting facts and documentation for this determination is on file with the Authority and is available to the public upon request. The full report will be retained by the Authority for the life of the TIF District. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. Generally, a building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15°/a of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an intenor inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following contlitions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2) the demolition or removal of the substandard building was performetl or financed by the City, or was performed by a developer under a development agreement with the City, (3) the City fountl by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF district,and (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of(4)above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b)a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots;or other similar structures, At least 90 percent of the tax increment from a renewal and renovation district must be used ko finance the cost of correcting conditions that allow designation as a redevelopment district, These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of lantl, removal of hazardous substances or SPRINGSTED Page 2 Housing and Redeve/opment Authority of the City of Go/den Valley, Minnesota remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the Authority may be included in the qualifying costs, Section F Duration of the TIF District Renewal and Renovation districts may remain in existence 15 years from the date of receipt of the first tax increment. The Authority anticipates that the TIF District will remain in existence the maximum duration allowed by law(projected to be through the year 2030). Modifications of this plan (see Section Z) shall not extend these limitations. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority, The Authority has elected to delay receipt of increment for a period of one year; therefore, the anticipated first collection year will be 2015. The Authority reserves the right to allow the TIF District to remain in exiskence the maximum duration allowed by law(projected to be through the year 2030), and anticipates that the TIF District may be active for the maximum duration allowed (see Section P). However the Authority will decertify the TIF District as early as possible should the projected increment be received in a shorter time period than originally projected, All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Section G Property to be Included in the TIF District The TIF District is an approximate 4,46-acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I, The boundaries and area encompassed by the TIF District are described below: Parcel Number Le al Descri tion 31-118-21-32-0009 THAT PART OF NW 1/4 OF SW 114 LYING E OF W 749 $/10 FT THOF AND W OF E 291.14 FT THOF N OF STATE HWY NO 55 AND S OF WATERTOWN ROAD 31-118-21-32-0008 W 211 14/100 FT OF E 291 14/100 FT OF THAT PART OF NW 1/4 OF SW 1l4 LYING S OF MPLS WATERTOWN ROAD AND N 0 F STATE HWY NO 55 31-118-21-32-0007 E 80 FT OF THAT PART OF NW 114 OF SW 114 LYING S OF MPLS WATERTOWN ROAD AND N OF STATE HWY NO 55 31-118-21-31-0001 THE W 115 FT OF THAT PART OF NE 1l4 OF SW 114 LYING NLY OF STATE HWY NO 55 ANQ SLY OF 6TH AVE N 31-118-21-31-0002 THE E 115 FT OF W 230 FT OF THAT PART OF NE 114 OF SW 1I4 LYING NLY OF STATE HWY NQ 55 AND SLY OF 6TH AVE N 31-118-21-31-0040 REGISTERED LAND SURVEY N0. 0030 HENNEPIN COUNTY, M INNESOTA TRACTS S&W The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of a currently blighted site by the construction of a 142-unit market rate apartment project. Proposed to be constructed as a result of the apartment project are public improvements SPRINGSTED Page 3 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota proposed for the area to include improvements to the Highway 55 access/exit to Decatur Avenue North, sidewalks and lighting to improve pedestrian safety, burial of overhead electrical lines, regional storm water facilities and sanitary sewer lining. These improvements are necessary to facilitate the redevelopment of the blighted site, by facilitating a safer pedestrian neighborhood and removing costs prohibitive to the redevelopment of the project area, The Authority anticipates using tax increment revenues to finance a portion of the eligible public costs related to redevelopment of the project area,as well as related administrative expenses. The Authority anticipates development commencing in 2013 for the apartment portion of the project. The public improvements are slated to be undertaken in conjunction with the apartment project. It is likely that multiple projects will occur within the District, although it is assumed that all project costs eligible for TIF assistance will have been initiated by 2016. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the Authority makes the following findings: (1) The TIF District qualifies as a renewal and renovation district; The City of Golden Valley retainetl the services of LHB ta inspect and evaluate property within the proposed Tax Increment Financing District to be established by the Authority. The purpose of the evaluation was to determine if the proposed district met the statutory requirements for coverage and if the buildings met the qualifications required for a Renewal and Renovation District. These findings are described more completely in Section E and Exhibit VI. (2) The proposed development, in the opinion of the Authority, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and 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. Factual basis: Proposed deve%pment not expected to occur.� The proposed redevelopment consists of the acquisition and demolitionlrenovation of substandard buildings,and the undertaking of necessary public improvements within the proposed TIF District boundaries in the City of Golden Valley for development of new market rate apartments. The cost of acquisition and demolitionlrenovation of the existing buildings coupled with the cost of the public improvements, make the total cost of this effort significantly higher than reasonably incurred for similar developments on a clean site. The Authority anticipates undertaking the public improvements necessary to provide for an area safe for both pedestrian and vehicle traffic, and to remove costs prohibitive to the redevelopment of the project area. No higher ma�ket value expected.� If the proposed redevelopment did not go forward, for the same reasons described above, no large scale altemative redevelopment of the project site would likely occur. The currently blighted building is now closed and vacated, and it is highly unlikely that significant improvements would be made, It is conceivable that the existing buildings could be rehabilitated and reopened, but even if that occurred, the result would be only a modest increase in market value compared to the significant value growth created by the proposed redevelopment. In short,there is no basis for expectation that the area would redevelop or be renovated in any significant way purely SPRINGSTED Page 4 Housing and Redevelopmenf Authority of the City of Goiden Valley, Minnesota by private action without public subsidy given the improvements necessary for the development of the project area. To summarize the basis for the Authority's findings regarding altemative market value, in accordance with Minnesota Statutes,Section 469,175,Subd,3(d),the Authority makes the following determinations; a. The Authority's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from$0 to some modest amount based an small scale renovation or redevelopment that could be possible without assistance; any estimated values would be too speculative to ascertain. b, If the proposed development to be assisted with tax increment occu�s in the District,the total increase in market value would be approximately$25,905,935, including the value of the building (See Exhibit II). c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be$3,229,283(See Exhibit� d, Even if some development other than the proposed development were to occur, the Authority finds that no altemative would occur that would produce a market value increase greater than $22,676,652(the amount in clause b less the amount in clause c)without tax increment assistance, (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the Authority as a whole,for development of the Project Area by private enterprise, Factual basis: The anticipated redevelopment of the project site may include the construction of a new 142-unit market rate apartment building,and the redevelopment of project area consistent with the City's design goals. (4) The TIF Plan conforms to general plans for development of the Authority as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building Acquisition, Demolition, Special Assessments,Public Utilities, Site $3,034,633 Improvements/Preparation Costs, and other Eli ible Im rovement Costs Bond/Note Interest Pa ments 2,289,264 Administrative ex enses 591,544 Other Ex enditures Total $5,915,441 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased, The estimated cost of capitalized interest is included in the loan interest payment amount. The Authority reserves the right to spend available tax increment outside of the TIF District boundaries and within the project area, SPRINGSTED Page 5 Housing and Redevelopment Authorify of the City of Golden Valley, Minnesota Section L Estimated Sources of Revenue Tax Increment revenue $5,915,441 Interest on invested funds Bond roceeds Loan roceeds Grants Other Total $5,915,441 The Authority anticipates using future tax increments for reimbursement of public costs incurred from Sectio� K. As increments are collected from the TIF District in future years, these taxes will be reserved by the Authority as reimbursement for public costs incurred, either through internal funding or general obligation or revenue debt, The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law, The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority anticipates issuing tax increment bonds to finance a portion of the estimated public costs of the TIF District, to intemally loan funds to the TIF District from allowable Authority andlor City in an amount not to exceed $3,641,560(eligible costs+20%allowance for cost of issuance), Section N Original Net Tax Capacity The County Autlitor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31,inclusive, this value is based on the current assessment year. The Estimated Market Value of all the land within the TIF District as of January 2, 2012, for kaxes payable in 2013, is $3,457,000 and the original net tax capacity of the TIF District is $53,240. This assumes a portion of the property is reclassified to rental, and the remaining area continues to be classified commerciallindustrial. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements;or (4) changes in property classification rates. Section 0 Original Local Tax Rate SPRINGSTED Page 6 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original local tax rate of the TIF District. At the time this document was prepared, the sum of the final local tax rates that apply to property in the TIF District, for taxes levied in 2012 and payable in 2013, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District, For purposes of estimating the tax increment generated by the TIF District, the sum of the final local tax rates for taxes levied in 2011 and payable in 2012, is 143.443%as shown below. 2011/2012 Taxing Jurisdiction Local Tax Rate City of Golden Valley 55,796% Hennepin County 48.231% ISD#27Q 29.270°/a Other 10.146% Total 143.443% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the apartment project will be 75%completed by December 31, 2013, creating an initial tax capacity for the TIF District of $210,271 as of January 2, 2014, The captured tax capacity as of that date is estimated to be$157,031 and the first-year of tax increment is estimated to be $225,250 payable in 2015. The first full year of increment is projected to be in $307,091 in taxes payable 2016. A complete schedule of estimated tax inerement from the TIF District is shown in Exhibit IV, The estimates shown in this TIF Plan assume that commercial class rates remain at 1.5% for the first$150,000 of estimated market value and 2,0% of the market value above $150,000; and that rental class rates remain at 1.25%. The projections also assume a 3%annual increase in market values. Each year the County Auditor shall determine the current net tax capaciry of all property in the TIF District, To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity, In subsequent years, the current net tax capacity shall either(a)be determined before the application of fiscal disparity or(b)exclude the product of any fiscal tlisparity increase in the TIF District (since the original net tax capacity was certified)times the appropriate fiscal disparity ratio. The method the Authority elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method(a) to method(b) above. »The Authority elects method(a),or M.S. Section 469.177,Subdivision 3(a). The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. SPRINGSTED Page 7 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36%of the annual tax increment generated by the TI F District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District(see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated pubiic costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the Counry Board under M,S, Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement, Tax increments shall not be used to circumvent levy limitatians applicable to the Authority, Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county,school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes, This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer,or other beneficiary of assistance,to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair ma�ket rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: SPRINGSTED Page 8 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds;or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District, The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 75%of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance khe estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area,except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs(including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the T IF District,at least 75%of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The Authority does not currently anticipate that tax increments will be spent outside the TIF District(except allowable administrative expenses), but such expenditures are expressly authorizetl in this TIF Plan, Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connectetl with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; SPRINGSTED Page 9 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178;or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause(1)to(3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of(a) 10%of the total tax increment expenditures authorized by the TIF Plan or(b) 10%of the total tax increments received by the TIF District. Section U Limitation on Property Not Subject to Improvements-Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualifietl improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year,evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The Counry Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions wiil occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the tlistrict is estimated to be $5,936,814. 2. To the extent the project in the TIF District generates any public cost impacts on city-provitled services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the district upon the ability to issue other debt for general fund purposes,such costs will be levied upon the taxable net tax capacity of the Authority,excluding that portion captured by the District. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school districYs share of the total local tax rate for all taxing jurisdictions remained the same,is estimated to be$1,211,426. 4. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$1,996,183, SPRINGSTED Page 10 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota 5. No additional infarmation has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The City shall accompany its request for certification to the County Auditor(or notice of district enlargement), with a listing of all praperties within the TIF District for which building permits have been issued during the 18 months immetliately preceding approval of the TIF Plan. The County Autlitor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued, There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a renewal and renovation district, more than 25% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pletlged), then prior to such acquisition, the Authority must enter into an agreement for the development of the prope�ty. Such agreement must provide recourse for the Authority should the development not be completed. The Authority does not anticipate acquiring any property located within the TIF District, or entering into an agreement for development., However, the Authority does reseNe the right to acquire property and enter into an agreement if deemed necessary. Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shal! be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Authority does not anticipate entering into an assessment agreement; however, it does reserve the right to enter into an assessment agreement for future projects if deemed necessary. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs;or designation of property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if; SPRINGSTED Page 11 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (1) the only modification is elimination of parcels from the TIF District;and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF DistricYs original net tax capacity, or the Authority agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District, The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting #he TIF Plan, and a listing of any prior planned improvements. The Authority shall also sentl the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District, The amount of tax increment may change due to development anticipated by the TIF Plan, other development,inflation of property values,or changes in property classification rates or formulas, In administenng and implementing the TIF Plan,the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District,or for modification of an existing TIF District, before July 1, the reques#shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District The amount certified shall reflect any changes that occur as a result of the following; (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes,then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements SPRINGSTED Page 12 Housing and Redevelopment Aufhority of the Gity of Golden Valley, Minnesofa The Authority will file the TIF Plan,antl any subsequent amendments thereto, with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes,Section 469,175,subdivision 4A. The Authority will comply with all reporting requirements for the TI F District under Minnesota Statutes,Section 469.175,subdivisions 5 and 6. SPRINGSTED Page 13 Exhibit 1 MAP OF TAX INCREMENT FINANCING(Renewal and Renovation)DISTRICT Within Highway 55 West Redevelopment Project Area � asa 900 , 888 9z5 I ' � 9Q5 93 870 850 923 � 85t � y� '� 815 9r0.5 I 840 I B00 � 830 H0� I 840 �' I � . ` 7}0 BJS � 742 7�7 � � 708 896 890 676 � 7a5 682 880 _' 870 � 730 610 f Ln � 707 � � 662 � � 201 '�B!07 (� k '� 672 'f0 103f02 � e� 09 — ��'� /�\�@ � ?' � ? I 92<p y.�Q � � B900 8B5^ �. LS 9300 �� 9000 8806 �. � \ 93 93'0 9200 92•�r `I 9'1f0 ry�{ B00 � VQPCt�� Ua��P'�Rf_f M.717.t��Y�R . ' 8685�� r "— 4�6,tltA7�q.Rl f0�lilil��q.R I 89a'1'l�.97Y.72/q.1t� ' . � �,00 P°'°„1.,..�.b.ti 9307 �8.2fl.7/tq.}L y.30 .. � � t/,�M.Ol�9.R � , � � .. ' . 9I10 I .. . � .. . � � ..��Q(�, � BB'S ,Y �/ ♦ �y $9i. � ��,�p��•�C�� " �I; � �CnL'�}f'`4�J <99 Q� a40 , R�� .. 895a 89a5 �• . •' �.,� � _ . ,� . � 903' d33 �' 433 � i34 88�r S. ...,...,�.«,...,..�,.�•.-- �g� .. �� ._... ' � � a7a 423 � <7< � ...,,�...._... ,.;..,...'- i21 °j Ry, � � a;6 3J7 � 010 B918 8920 89•2 415 p'(�� yJ o08 � 3�5 ^di / .� � 9201 339 0� � 893 B92 9v7 9'3 8909 d�t 325 �Boundary of Hwy 55 West Redevelopment Project Area � Boundary of Renewal and Renovation TIF District � � � SPRINGSTED Page 14 Exhibit 11 Assum tions Re ort City of Golden Valley, Minnesota Tax Increment Financing(Renewal & Renovation)District Highway 55 TIF District Scenario A-$18.5M EMV Type of Tax Increment Financing District Renewal&Renovation Maximum Duration of TIF District 15 years from 1st increment Projected Certification Request Date 12/04/12 Decertification Date 12/31/30 (16 Years of Increment) 2012l2013 Base Estimated Market Value $3,457,000 Original Net Tax Capacity $53,240 Assessment/Collection Year 2012/2013 2013/2014 2014/2015 2015/2016 Base Estimated Market Value $3,457,000 $3,457,000 $3,457,000 $3,457,000 Increase in Estimated Market Value 0 0 12,562,500 17,126,875 Total Estimated Market Value 3:457,000 3,457,0�0 16,019,500 20,583,875 Total Net Tax Capacity $53,240 $53,240 $210,271 $267,326 City of Goiden Valley 55.796°/o Hennepin County a8.231% ISO#27Q 29.27Q% Other 10.146% Local Tax Capacity Rate 143.443% 2011l2012 Fiscal Disparities Contribution From TIF District 0.0000% Administrative Retainage Percent(maximum= 10%) 10.00% Pooling Percent 0.00% Bonds Note(Pav-As-You-Go) Bonds Dated 12/04/12 Note Dated 12/04/12 Bond Issue @ 0.00%(NIC) $0 Note Rate 6.00% Eligible Project Costs $0 Note Amount $2,999,500 Present Value Date&Rate 12/04/12 6.00% Notes Projections assume no future changes to tax and classification rates. Assumptions are based on a 3%market value inflator. Projections are based on a total post development estimated market value of$18.5M. SPRINGSTED O O p � N �" M Ln V' W lh OD aD M � f0 W 4� O o O O O O O O O O t7 � � d' e0 1� oD tO M N V �n I� aD W � M F- N c0 M O o0 a0 c0 O M f� N aD �f1 M N N c'� lO � j � o c'7 V' W c] 07 M W � � ll� O (O N a0 ? O Q � G N V � I�. N O O T O� OD OD a� 1� I� (O (O (D [�7 a C 0... O N r- N N N N N '- �". � �". � � �- �- � � O = a � N � � � r Y..� Z � � � � X O O O ln fO 00 OD t'7 � I� N t`7 4D I� O 1+ tf1 00 O O O O O O O O O O f� � �y � a0 'Q N N M V N O> N .- � Q !`] V' OI W � � (h (O '- O� 01 N OJ (O OD C� O N (O C u7 00 � > �- u) o'i N o 01 W aD ao W Oi O .- (V d' fD f") > O h aQ � O O � N M � N f� OD 01 O N � C d � � N N N N c`� th c'� M c'� ch M c�1 M M V V M C Z � v � Q O O O V Of I� fV (O Q� N lO N � N SD (O � M O O O O O O O O O O V' 7 a1 .- f0 C7 t+') 1� t+7 0] tD N N N N M o0 V' N � �fI N � �� V N f0 f� 0I � M f0 O� N � �o N O N C7 � N lD 1� OD 01 N M V' (D � �� G po � N r1 M M M M M M M M M C V' tY 'Q � � � J Q � O `�' � r O Q O 01 N N O Ol O M � R N � (O c�1 O O O O O O O O O O O C M a0 t0 N �f1 O� N (D N 'Q N �O u1 t'1 � � p V � tD C� M I� M M (O N N N N M 00 V N � ? V V V ln f0 I� 01 c- M t0 Q� N Ln N � O V N O N f°1 7 N (O I� a0 01 N M V (O c � � � N ('7 M CI M M M M M M M V d' V' ? � �? � � Z � v tA Q � O O 4 O �- (O Q1 M o7 Y N O O O N f0 O (O V N O O O O O O O O O O M .- O � I� O C� W N (D O � W M t� N I`� I� .� C ao r .- N N N M c'� V' 'Q V tn u1 W (O M � � o yQ � O � r �- .- � .- �- r � � � r r r � � J Y � M W �a y � o a 0 0 0 o v c-i n v r� r� v v v �n co rn v co 0 0 0 0 0 0 0 0 0 o v N W O � (O ('� O aD 00 �- G� O OD (") I� O X N O M � N tD O (O (O O (O I� O W � N W N C ll) 1� {O N N N (O f0 1� 0I O N N 1� O d' �U � F" � N O N th V �n (D h aD O N C1 N (D l`7 E N f`7 M ('� M M M ("1 P1 M V V 'C V O V' �? C �Nq N n tn Q � U � � C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o q o 0 o a o 0 0 0 07 M M M l`7 P/ N1 ('7 M M lh M ch th (7 M a� c] C7 M M !`7 D7 th M M M th M � V � V' V V V' V V' V V V V ? � � a' � C � � V V' d' � � � V V' O v v v v, v v, v v c v v v, a v a v v v v v v v v v v v c v, v � 'u al ri ri ri �n c�i �n oi oi r�i oi oi c� ri ri c� co ci vi c� c� vi c�i oi ri c� vi ri c� vi � � Q� � v v v v v v v v v v c v v v v v c v v v � v v � v v c v c � � � .� .- � � '- .- � .- � � � .- '- � .- .- r .- .-. .- � .- .- U O O O (O 01 � I� (D � O � a0 V V' N N N V' o O p O O O O O O O c'� W O N c`') N 00 c'� � � M � V' c`') O> N II � � O O lD '- 01 Ql �-- 1D N � {`7 1� M N ('7 OD y � � h V O f� C� O GO tn C� 01 I� SO LD � M C � F U N N N M 7 V � t0 1� 1� 00 Ot O N � a a N �- N N N N N N N N N N N N M M M � (j Z U v 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �° 0 c> � � a o � N J � � � 0 � C O - a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i6 v v v v v v v v v v v v v v v v v v v ? T N N N N N N N N N N N N N N N N N N N . � � f6 x "' M t`7 C7 C� c+l c7 P') c� t7 t7 Pl o') [7 C� M o7 C7 M M C 4i C � U 4J ln N N N N N Y� N N In N N 1fJ 1n N V) N N H � N 'm .«. 0.... N 'C ot} J O Z V O m d � � � � c o 0 0 .- �o rn v n �o v o rn m v v u� u� c� v o 0 0 0 0 0 0 0 0 0 y+ N y 'ct' V V f� N V !D � Of N I� M M I� tn a0 I� M (O C = � x T N N N N c'� 1`- o') '- V' W N ? V1 Of 1�] V (O O � .� t`7 ch th O h th O I� V aD (D d' N O 01 aD h I� � �" � _ � Q � N (y � N � N N N N N N l7 M M C7 {`7 {`�] � C) M M W � � � ~ � a rV� C1 y C W Z U h C � � N � v/ X > i� � oo � F�' CI C LL � � C] � N tD ` GO 01 O N c] V' N (O i� 00 � O N f7 d' N (O i� aD m O � I"' � � � � � � N N N N N N N N N N t`7 t� t\ M {` (\ f\ (` ` M � y�i� .6 '6 � �(1 � �- '- e- '- '- '- '- �- � � � '- a- �- � � �^ �- '- '- '- �- e- � a � E 1n Q �p � Ol (`7 0') l`") M f'� (h ('� M M c'� M M !`') M ('7 f7 t7 0') {`') C] t'7 c'� f7 (`') c7 C� P') ch (7 U � U � p C � � � N (V N N N t� N (� N N (� t� (�J t1J N N N N (� � [� (� N f� f� (� N N (� � � . � .- � � .-- .- � � � .- � .- � .- '- '- � .-- .- '- � .- '- .- �- r � r- C� p c 3 � Q a �j .O � x � � a v � = u� � � V' M U � � � � V fq N '� � I ' C N a0 (O V � � lp � U � � � � � 0 N N a -F�r T X� � V Z � z � � �' � � x o 0 0 o n' W � c �. V N O (�Q � �, � o � � � L N U (0 O O O O N O a' J S 0 F- 0 0 0 0 o y U -O " T � (D � I� > � O . � � � N (D O jp � ' 'N t N J � L�fi V N � � � � @ � � N � p � � N O T Q N N Q.,' (0 .�- .�. � S H � � 0 X � 01 � �0 C F. � X � (0 a0 N O a N O U N N � �- � id N N .L.. V Ln OD M � (0 7 .L. � � O ,�,+ •� N X O CO O O L d N t0 F" a0 N 00 2� a N T O N � � L z ~ Z � N � � U .� � � @ � � � > y � L L U . p f6 . U p O a fl. u3i �y o �, 'i+ II �+ = C o o c 10 L � �n N C1 • '�S � Q N N N N � N C � � U y � � w, -o .8 .a ao ao ao ao 3 v o � w •� ai ai '� = c� c� � � a� � @ ri ri ri ri � �u �0 m N .p m 3 � •L U .0 > � • N N N N U :� � � lq 7 C a+ W N t0 V (h M M (�7 � N N x � U X � � otf N � p � @ � �y � w x ' N N u. '� m c T � O � a � UZCj � � �cnm rn � m m � � y � � � � .E o -o � � ° F' f6 C ~ � + p x J 7 C N � � d � � � � C a � � w 41 � � � Q � � � � � . 3 �, N ��. � 'p C1 N � N N X e' �` u� rn I � p � � .�3 � � .a \ c 3 � o � m oo v n �` — � N a `� cn � O �V � � N � I- •V (O I�. I� N N p V O U � C�, p O LL M C1 O C = U� N ~ Z@ N N � U � x � F- F- U C Q. � 1L � � X O �-' V N � � t1.Q � U +� � 3 o �a� w Z o °-' c c r s a a� m � -o � y d � o 0 0 0 o Z d O T•� > > y p, d v= N E V N N � N N � � � �L�, (0 N O. @ y � "' � f0 � tn OD � O f�') = N N (0 U N tl. � W �( V N � IY tn V' N V N > N v U � .@-. ~ •-• � � � J � U o m o m � c � c� ~ � N F- � � � � I- 'm o � c C V! h N � U � Q u- '� C N p Z � � f0 N L 1"' � � � �,'p � .�, �? � � 0 (O CO o0 U � N U N tn O� f� ' '4 N p` � > N C � � V; Q N � Q U � O � � • � � � � � .7 'D N � a .N Q. N a � x @ r� r; .o o; o aUi v a� � � . O F- Z fy N ry � Ll X 3 � C '�' ._,,, � C N (� � y .,�, V � 'N � C � ._.. N L O N C N � V = w 3 3 � in w � N m •� i- N 4 � a+ ++ �� 0�1 G1 N � 'X � � U � Q ,di � N ^ � � N LU ''� c�i � F �•v � � � x w � x =o � T � o � �N > � � � z � � -� a � � � a � C O X N V� O C � � F^^ I"' N N �p C L U = � O � '� :� Exhibit V Market Value Analysis Report City of Golden Valley, Minnesota Tax Increment Financing (Renewal 8� Renovation) District Highway 55 TIF District Scenario A-$18.5M EMV Assumptions Present Value Date 12/04/12 P.V. Rate -Gross T.I. 6.00°/a Increase in EMV With TIF District $25,905,935 Less: P.V of Gross Tax Increment 3,229,283 Subtotal $22,676,652 Less: Increase in EMV Without TIF 0 Difference $22,676,652 Annual Present Gross Tax Value @ Year Increment 6.00% 2014 0 0 1 2015 225,250 191,063 2 2016 307,091 245,738 3 2017 316,304 238,783 4 2018 325,793 232,025 5 2019 335,567 225,459 6 2020 345,634 219,078 7 2021 356,003 212,877 8 2022 366,6$3 206,852 9 2023 377,684 200,998 10 2024 389,014 195,310 11 2025 4Q0,684 189,782 12 2Q26 412,705 184,411 13 2027 425,Q86 179,191 14 2028 437,839 174,120 15 2029 450,974 169,192 16 2030 464,503 164,404 $5,936,814 $3,229,283 SPRINGSTED Exhibif VI RENEWAL AND RENOVATION QUALIFICATIONS FOR THE DISTRICT EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Golden Valley to inspect and evaluate the properties within a Tax Increment Financing Renewal and Renovation District ("TIF DistricY') proposed to be established by the City. The proposed TIF District is located in the City of Golden Valley, bounded by Golden Valley Road on the North, Highway 55 on the South, and Decatur Avenue North on the West (Diagram 1). The purpose of LHB's work is to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether five buildings on seven parcels, located within the proposed TIF District, meet the qualifications required for a Renewal and Renovation D istrict. F ,.. .,.� �� ; � }. � h, , s .. �, a � � �: � " � � � � � � �. _ , ��; � � ,. . <r u :�� £ -,,.. .: .. . ,� . : . ,.<., ; ��. �' ` . �a_� ��Z � . '��. n x�:, :� ,�id// t, _ �� ,. .' ,,. . . _ �, - , r, y Diagram 1 —Proposed TIF District SCOPE OF WORK The proposed TIF District consists of six (6) parcels and a section of public road, with five (5) commercial buildings. All five of the buildings received a curbside visual inspection. Three buildings in the proposed TIF District received an on-site interior and exterior inspection. Building code and Condition Deficiency reports for each building inspected by LHB are located in Appendix B. SPRINGSTED Exhibit VI CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Renewal and Renovation District under Minnesota Statutes, Section 469.174, Subdivision 10a, it is our professional opinion that the proposed TIF District qualifies as a Renewal and Renovation District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement. • 20 percent of the buildings are structurally substandard which meets the 20 percent requirement. • 50 percent of the other buildings require substantial renovation or clearance which is above the 30 percent requirement. • The substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District. SPRINGSTED