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14-096 - 12-02 - Tax Increment Financing Plan Resolution 14-96 December 2, 2014 Member Schmidgall introduced the following resolution and moved its adoption: RESOLUTION APPROVING MODIFICATION NO. 2 TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (RENEWAL AND RENOVATION) DISTRICT NO. 1 BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The City approved a redevelopment plan (the "Project Plan") and redevelopment project of the Housing and Redevelopment Authority of the City of Golden Valley (the "Authority"), under Minnesota Statutes, Sections 469.001 to 469.047, designated as the Highway 55 West Renewal and Renovation Project Area (the "Redevelopment Project") and a tax increment financing plan of the Authority under Minnesota Statutes, Sections 469.174 to 469.1799 (the "Act"), designated as the Tax Increment Financing Plan for Tax Increment Financing (Renewal and Renovation) District No. 1, as amended by an administrative modification adopted January 15, 2013 (as so modified, the "Financing Plan"). The Financing Plan established Tax Increment Financing District No. 1 (the "District"). 1.02. Pursuant to the Act, the Authority has adopted Modification No. 2 to the Financing Plan (the "Amendment" and together with the Financing Plan, the "Amended Financing Plan"). The Amended Financing Plan updates the development scenario and increases the budget of the District, and provides for other conforming changes, all as reflected in the Amended Financing Plan and presented for this Council's consideration. 1.03. Members of the Board of County Commissioners of Hennepin County and of the Board of Education of Independent School District No. 270 have been given an opportunity to meet with the City and comment on the Amended Financing Plan. Pursuant to Minnesota Statutes, Section 469.175, subdivisions 3 and 4, this Council on December 2, 2014, conducted a public hearing on the desirability of approving the Amended Financing Plan. Notice of the public hearing was duly published as required by law in the New Hope Golden Valley Sun Post, the official newspaper of the City, on November 20, 2014. The City not received written comments on the Amended Financing Plan from the county and the school district after providing the county and the school district board with information on the fiscal and economic implications of the Amended Financing Plan not less than 30 days before the date of the public hearing. 1.04. In addition to the notice and opportunity described in Section 1.03 hereof, the City delivered written notice to the member of the Board of County Commissioners of Hennepin County who represents the District. The notice contained a general description of the boundaries of the District, the proposed development activities to be undertaken therein, an offer by representatives of the City to meet and discuss the proposed District with the county commissioner and a solicitation of the commissioner's comments with respect to the District. Resolution 14-96 - Continued December 2, 2014 Section 2. Approval of Amended Financing Plan. On the basis of the Amended Financing Plan and the information elicited at the public hearing referred to in Section 1.03, it is hereby found, determined and declared: 2.01. The Amended Financing Plan provides the means to finance certain public redevelopment costs of the Redevelopment Project, including the redevelopment activities described in the Project Plan that benefit the District. The Amended 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 Amended Financing Plan also 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 of the District. The Amended 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 Amended Financing Plan further contains alternative estimates of 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. 2.02. 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 Amended 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 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 renovation district' within the meaning of Minnesota Statutes, Section 469.174, subdivision 10a. 2.03. The private redevelopment proposed to be encouraged in the Redevelopment Project pursuant to the Project Plan would not, in the opinion of this Council, 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 this Council, 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 Amended Financing Plan. The studies and analyses supporting these findings are identified in the Amended Financing Plan. Resolution 14-96 - Continued December 2, 2014 2.04. The Amended 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. 2.05. The Amended 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. 2.06. Upon review of the Amended Financing Plan, the information elicited at the public hearing and on the basis of the findings in Sections 2.01 through 2.05, this Council hereby approves the Amended Financing Plan. She and M. Harris, ayor ATTEST: Kristine A. Luedke, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Fonnest and upon a vote being taken thereon, the following voted in favor thereof: Schmidgall, Fonnest, Snope and Harris and the following voted against the same: Clausen whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the City Clerk.