12-103 - 12-18 - adopt tax increment financing plan - hwy 55 west - district #1 - renewal and renovation Resolution 12-103 December 18, 2012
Member Pentel introduced the following and moved its adoption:
RESOLUTION OF 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 the City Council of the City of Golden Valley, Minnesota (the
"City"), as follows:
1. Financing Plan Review. The City 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. Approval. The Financing Plan is hereby appraved, as provided in Section 4,
based on the findings in Section 3 hereof.
3. Findin sq for Approval of the Financing Plan. The City 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
statemenfi of objectives for the improvement af the Redevelopment Proj�ct, 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 also
estimates the public redevelapment 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 of
the District. The Financing Plan also describes and identifies the development activities to
be undertaken or expected to be undertaken in the District and atl parcels to be included in
the District. The Financing Plan further contains alternative estimates ofi the impact of the
proposed 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 districY' 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 structurally substandard; and 3Q% of the other
Resolution 12-103 - Continued Qecember 18, 2012
buildings require substantial renovation or clearance to remove existing canditions, such as
inadequate street layout, incompatible uses or land use relationships, overcrowding of
buildings on the land, excessive dwelling unit density, obsolete buildings nat suitable for
improvement or conversion, or other identified hazards to the health, safety, and general
well-being af the City. The foregoing conditions are reasonably distributed throughout the
geographic area af 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 redevelapment proposed to be encouraged in the Redevelopment
Project pursuant to the proposed Praject Plan would not, in the opinion of the City,
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 City, 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 subtraeting 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 whale. 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 as determined by the
Planning Commission an November 26, 2012.
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 af the City and overlapping
taxing jurisdictions.
4. Transmittal and Public Hearinq. The Financing Plan was transmitted to the
Golden Valley Planning Commission to affirm the findings in Section 3.Q4, and to Hennepin
County and School District 270 for review and comment, and a notice of public hearing
published priar the December 18 public hearing, all in accordance with Minnesota Statutes,
Chapter 469.
5. Filinq. The Director is hereby authorized and directed to file the Financing Plan
with the Commissioner of the Minnesota Department ofi Revenue and the Office of the
State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4a.
Shepar M. Harris, M or
Resolution 12-103 - Continued December 18, 2p12
ATTEST:
✓V
Susan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Scanlon
and upon a vote being taken thereon, the following voted in favor thereof: Glausen,
Freiberg, Harris, Pentel and Scanlon; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and his signature attested by the City Clerk.