98-07 HRA Resolution
Resolution 98-7
September 8, 1998
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Commissioner Bakken introduced the following resolution and moved its
adoption:
RESOLUTION APPROVING REVISION OF THE REDEVELOPMENT PLAN
AND TAX INCREMENT FINANCING PLAN
FOR THE GOLDEN HILLS REDEVELOPMENT PROJECT
BE IT RESOLVED by the Housing and Redevelopment Authority (the
"Authority") in and for the City of Golden Valley, Minnesota (the "City") as
follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority modify the Redevelopment
Plan and Tax Increment Financing Plan (the "Plans") by updating actions taken
to date to fulfill the Plans, by outlining actions yet to be taken and by revising the
budget for the Project, pursuant to and in accordance with Minnesota Statutes,
Sections 469.001 to 469.047, inclusive, as amended.
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1.02. The Authority has investigated the facts and has caused to be
prepared a proposed revision of the Plans (the "Revised Plans") for the Golden
Hills Redevelopment Project setting forth the information specified in Section
1.01.
1.03. The Authority hereby determines that it is necessary and in the best
interest of the HRA at this time to adopt the Revised Plans (attached as Exhibit
A), contingent upon their review by the Planning Commission, and to request
that the City Council (the "Council") of the City hold a public hearing relating to
the Revised Plans.
Section 2. Approval of the Revised Redevelopment Plan and Tax
Increment Financing Plan.
2.01. The Revised Plans presented to the Authority on this date are
hereby approved and adopted.
2.02 The Revised Plans, as approved and adopted by the Authority on
this date, shall be forwarded to the Council with the request that the Council hold
a public hearing relating to the adoption of the Revised Plans, and that said
Revised Plans shall be placed on file in the office of the City Clerk.
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Resolution 98-7 (Con't.)
September 8,1998
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Section 3. Filing of Revised Plans.
3.01. The Authority shall cause the Revised Plans, as finally approved
and adopted, to be filed with the Minnesota Department of Revenue.
ATTEST:
CI.v .
Motion for th a optIon of the foregoing resolution was seconded by
Commissione eSuer; and upon a vote taken thereon, the following voted in
favor thereof: Anderson, Bakken, Johnson, LeSuer and Micks, and the following
voted against the same: none, whereupon said resolution was declared duly
passed and adopted, signed by the Chair and her signature attested by the
Director.
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Resolution 98-7
EXHIBIT A
September 8, 1998
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DRAFT
GOLDEN HILLS
REDEVELOPMENT PLAN
ORIGINAllY ADOPTED IN 1984
-- HRA Approval Date (No Resolution): September 10, 1984
-- City Council Approval Date (Resolution 84-120): October 16, 1984
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AMENDED IN 1998
-- HRA Approval Date (Resolution 98-xx): xxx, 1998
-- City Council Approval Date (Resolution 98-xx): xxx, 1998
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Resolution 98-7
EXHIBIT A
September 8, 1998
GOLDEN HILLS REDEVELOPMENT PLAN
Part I: OVERVIEW
Area Location and Extent
The Golden Hills redevelopment area (Exhibit A) abuts Golden Valley.'s southerly
city limits for almost a mile between Trunk Highway 100 on the east and Colorado
Avenue on the west. Except for a small "panhandle" at Highway 100, the area lies
entirely north of 1-394. As established in 1984, the northerly boundary of Golden
Hills generally ran behind a row of single family houses and a nursing home on
Circle Down and then jogged north to follow Laurel Avenue west from Turners
Crossroad. That original redevelopment area included about 91 acres of land.
The main purpose of this 1998 plan amendment is to expand Golden Hills by
drawing in additional land area lying between Turners Crossroad and the Soo Line
Railroad, extending northward to a point just beyond Glenwood Avenue. Because
of a 1997 boundary adjustment between Golden Valley and neighboring St. Louis
Park, a thirty-foot-wide strip of land running from Xenia to Colorado Avenue is also
being added to Golden Hills at this time. Total land area as amended is about
129.5 acres.
Golden Hills incorporates a Tax Increment Financing (TIF) district. The
boundaries of the TIF district are contiguous with the boundaries of the original
Golden Hills .redevelopment area except that the district excludes the portion of
the redevelopment area lying south of 1-394. The newly added land in the
redevelopment area will not become part of the TIF district.
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Resolution 98-7
EXHIBIT A
September 8, 1998
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Resolution 98-7
EXHIBIT A
September 8, 1998
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Background
One of the reasons for establishing the Golden Hills redevelopment area was to
provide a means foi"addressing issues and opportunities arising in connection
with plans to upgrade old Trunk Highway 12 (now 1-394) to interstate highway
status. Golden Valley opposed the highway upgrade for many years, but began
positioning itself for dealing effectively with the accompanying land use impacts
once the decision to construct 1-394 became inevitable.
The City's first step was to enact a construction moratorium along the entire
Highway 12 corridor from September 1979 to September 1980 while waiting for
the final 1-394 design plans. Following a period of background research and
documentation, Golden Valley's 1982 comprehensive plan update identified part
of the highway corridor as a "study area" due to "signs of deterioration within the
area and potential for redevelopment in conjunction with anticipated upgrading of
Highway 12 to 1-394." Another moratorium from April 1984 to April 1985 allowed
the HRA to establish the Golden Hills redevelopment area, Golden Hills TIF
district, and related plan documents for both.
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The original Golden Hills redevelopment plan examined then-existing land use
conditions, determined appropriate long-term land use categories, and established
more specific redevelopment uses that corresponded to the land use categories.
The plan also defined the area to be covered by the Golden Hills TIF district,
provided an outline for development or redevelopment within the TIF district, and
connected proposed development or redevelopment to local land use objectives.
Because the redevelopment plan indicated general land uses appropriate to
replace the "study area" designation in the comprehensive plan, it was considered
a base for amendment of the comprehensive plan and the related City zoning
map. All of those elements have been retained with the current Golden Hills plan
amendment, except for such changes as necessary or desirable to bring the plan
up to date.
The original Golden Hills plan anticipated programming of redevelopment activities
over a period of five to ten years. A real estate market decline in the late 1980's
resulted in several years of unsuccessful marketing attempts on the part of the
HRA and unfeasible proposals by interested developers. The situation was
exacerbated by temporary access and circulation disruptions while the new
interstate highway was under construction. With 1-394 complete and the real
estate market going strong again, the redevelopment plan for Golden Hills is back
on track, delayed by several years but still providing a valid blueprint for
successful revitalization of this area.
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Resolution 98-7
EXHIBIT A
September 8, 1998
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Findings in Support of Redevelopment
To use the redevelopment powers authorized for local H~'s under state law, a
city must first make certain "findings" about any area proposed for redevelopment.
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For the Oriainal RedeveloDment Area
Findings for the original Golden Hills area were outlined in summary form in the .
body of City Council Resolution 84-120, adopted on October 16.1984. They were
spelled out more fully within the redevelopment plan itself, and consist of the
following statements:
· Land in the Golden Hills Redevelopment District would not be made
available for redevelopment without public financial aid. Provision of
redevelopment lands in the Golden Hills Redevelopment District
requires removal of deteriorated and obsolete buildings, clearance of
overdeveloped parcels, correction of soil conditions on vacant land, and
assembly of existing lots into redevelopment parcels of appropriate size
and configuration. Assembly and development of property requiring
clearance or soil correction is not economically feasible for private
developers without public subsidy.
· Redevelopment plans for the Golden Hills Redevelopment District afford
maximum opportunity for redevelopment by private enterprise. The
Golden Hills Redevelopment Plan encourages private redevelopment in
the area and promotes cooperation or participation of existing
landowners in redevelopment projects. Several current property owners
in the Golden Hills Redevelopment District are in contact with the City
concerning cooperation with the HRA in assembly and redevelopment
of land or sale of property to the HRA for assembly and redevelopment
by developers. The role contemplated by the HRA in redevelopment
includes acquisition, assembly, and clearance of parcels, with sites
subsequently transferred to private developers, thus involving private
enterprise in the construction phase of redevelopment in all cases.
· The Golden Hills Redevelopment Plan conforms to the adopted City of
Golden Valley Comprehensive Plan. The Comprehensive Plan,
adopted November 16. 1982, designates the Golden Hills area as a
study area for potential redevelopment activity. The Golden Hills
Redevelopment Plan outlines redevelopment uses which reflect
appropriate long-term land uses for the area. Long-term land use
designations shall be incorporated into the Comprehensive Land Use
Plan Map in an amended City of Golden Valley Comprehensive Plan.
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With the current amendment to the Golden Hills plan, the HRA finds each of the
above points still valid as generally applied to the redevelopment area.
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Resolution 98-7
EXHIBIT A
September 8, 1998
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For the Added Redevelopment Area
A recent traffic study by SEH, Inc., revealed a need for improved north/south
access into and through Golden Hills to accommodate and. facilitate the full extent
of redevelopment activity contemplated in the plan. The existence ot excess
railroad right-at-way located just north of the Golden Hills Central Area offers an
opportunity to provide such improved access by expanding overall area
boundaries and undertaking certain additional activities as outlined later in this
amended plan. With regard to the newly added area, the HRA finds the following:
· Land in the Golden Hills Redevelopment District would not be made
available for redevelopment without public financial aid. Completion of
redevelopment activities requires improved north/south access. The
provision of such access requires close coordination with the railroad
company and substantial public investment in order to acquire the
necessary right-ot-way and design and build the new road.
· Redevelopment plans tor the Golden Hills Redevelopment District afford
maximum opportunity for redevelopment by private enterprise.
· The Golden Hills Redevelopment Plan conforms to the City of Golden
Valley Comprehensive Plan. The Golden Hills plan contemplates no
redevelopment activities that would alter long-range uses identified in
the land use element of the comprehensive plan. The transportation
element of the comprehensive plan has been amended to reflect the
new road corridor, which is being incorporated into a new land use plan
map as part of a general land use element update currently underway.
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Redevelopment Objectives
Specific redevelopment uses and activities are identified in Part II of this plan.
Broader objectives are identified in seven categories as follows:
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General
· Create an attractive 1-394 corridor for the City of Golden Valley in the
vicinity of Turners Crossroad.
· Reverse deterioration and degradation of current Trunk Highway 12
frontage in the area of Turners Crossroad.
· Stimulate and coordinate area redevelopment not possible without
public subsidy to private development.
· Provide for orderly physical and economic growth of the area through
controlled development and redevelopment.
. Strengthen and increase area tax base.
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Resolution 98-7
EXHIBIT A
September 8, 1998
Coordination With '-394 Proiect
· Take advantage of the incentive that 1-394 construction provides for
upgrading land use as a catalyst to further area redevelopment.
· Coordinate the upgrading of land uses and area redevelopment with the
conversion of Highway 12 to interstate status.
· Minimize public costs of 1-394 right-of-way acquisition and
redevelopment site acquisition through joint MnDOT/HRA purchases.
· Coordinate redevelopment time schedules with 1-394 project time
schedules in order to minimize construction period inconvenience.
· Integrate 1-394 acquisition parcel remnants into redevelopment sites.
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Bliaht Removal
Remove and replace dilapidated, deteriorated, and vacant buildings
which constitute a blight on the area.
Remove and replace, or rehabilitate and upgrade, obsolete and code
deficient buildings which have a blighting influence on the area.
Redevelop or upgrade properties which are unsightly due to lack of
aesthetic amenities including landscaped yards, paved parking areas,
and curb-separation between pavement and landscaping, or due to
loading docks facing the street.
Remove buildings that are overcrowded on small lots, resulting in
inadequate parking, nonconforming landscaped yard areas, and lack of
space for normal business expansion.
Clear and assemble overdeveloped small lots into larger redevelopment
sites allowing space for adequate parking, required landscaped yards,
and anticipated business expansion.
Eliminate unsightly land uses, including unscreened outside storage of
equipment or materials, which constitute a blight on the area and
adversely impact land value and marketability of surrounding properties.
Replace deleterious and inappropriate land uses incompatible with
surrounding land uses and detrimental to area property values.
Develop or redevelop underutilized properties with potential for greater
contribution to the tax base and economic welfare of the community.
Develop vacant and potentially useful land blighted by virtue of difficult
physical character of the ground, including poor soil conditions.
Eliminate or correct undesirable soil or topographic characteristics,
including poor soil conditions, to allow development of affected property.
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Resolution 98-7
EXHIBIT A
September 8, 1998
. RedeveloDment Land Use
· Achieve the highest and best use of Golden Valley properties bordering
1-394 in the vi.cinity of Turners Crossroad.
· Assemble redevelopment sites to accommodate more intense land uses
directly adjacent to 1-394.
· Provide desired expansion space for the Golden Hills Shopping Center~
· Assemble redevelopment sites to accommodate industrial operations
with future expansion potential.
· Rearrange area land uses to result in more functional and
complementary land use relationships.
Private Investment
· Minimize public redevelopment costs by encouraging private
redevelopment of the area and by promoting cooperation or
participation of existing land owners in redevelopment efforts.
· Encourage upgrading by owners and tenants of existing commercial
and industrial buildings and properties not targeted for redevelopment.
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Circulation
· Redesign local traffic circulation patterns and intersections in order to
eliminate existing traffic hazards and points of traffic congestion,
including inadequate frontage road separations from 1-394 ramps.
. Reorient building fronts to adjust to changes in street frontages resulting
from the 1-394 project.
Relocation
. Provide nearby sites and opportunities for expansion to existing
businesses displaced by redevelopment but still compatible with
designated redevelopment uses in the area.
· Minimize potential hardships created by relocation of conflicting or
incompatible land uses.
The current plan amendment does not require the addition of any new
redevelopment objectives. The HRA's aims for the expanded area are already
encompassed by one or more statements in the General, Blight Removal,
Redevelopment Land Use, Private Investment, Circulation, and Relocation
categories above.
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Resolution 98-7
EXHIBIT A
September 8, 1998
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Part II: REDEVELOPMENT PLAN COMPONENTS
Golden Hills is divided for planning purposes into five sub-areas (Exhibit B).
Included in the originally-established boundaries are the West Area, the Central
Area, the East Area, and the South Area. The current plan amendment adds a
Xenia Avenue Extension Area. The following pages describe each sub-area in
turn, outlining land use characteristics and summarizing planned and completed
redevelopment activities. A substantial amount of additional documentation on
initial property conditions can be found in the original Golden Hills plan and in
other records maintained by the HRA.
West Area
Although serious redevelopment activities did not get off the ground in the West
Area until the 1990's, it is now closer to being completely rebuilt than any of the
other five Golden Hills sub-areas. Construction on the last of its redevelopment
sites is expected to be finished by the year 2000. (Exhibit C)
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Boundaries and Size
Bounded on the west by Colorado Avenue, on the south by the adjusted city
Iimits/l-394 fence line, on the east by the Soo Line railroad, and on the north by
Laurel Avenue.
Approximately 31.7 acres in size.
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Initial Land Use Characteristics (1984)
. Large scale outside asphalt and gravel processing operations resulting in
noise, dust, and odors in addition to visual blight.
. Widespread, and sometimes large scale, unscreened outdoor storage of
equipment, materials, and junk, often on unpaved surfaces or deteriorating
paved surfaces with weedy overgrowth.
. Widespread zoning nonconformities, including commercial use of industrial
structures, inadequate on-site parking, inadequate or nonexistent landscaped
areas, and structures too big for sites.
. Increasing building and fire code violations, structural decline, and building
vacancy.
. Most of area never platted, some parcels with no direct street access, several
parcels of inadequate size or poor configuration for optimized site use,
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Exhibit C: Golden Hills West Area
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Resolution 98-7
EXHIBIT A
September 8, 1998
· Many parcels encumbered by numerous overlapping public and private
easements for a variety of access and utility purposes.
· Limited number of structurally sound buildings on sites r:Dostly conforming with
building, fir~, and zoning codes.
Known/AnticiDated 1-394 ImDacts (1984)
. Minimal, if any, permanent right-of-way acquisitions.
· 5ubstantiallimiting of highway access, with nearest access point at Xenia
Avenue, requiring careful attention to planning for local traffic circulation
between West and Central Areas.
Planned Characteristics
Mix of large scale office, office/warehouse, office/ industrial, light industrial, and
related service uses. Higher-density office development preferred adjacent to
1-394. Lower-impact, lower-density uses along Laurel Avenue, with adequate
buffering to protect residential neighborhood to the north. Provision of adequate
access and circulation system.
Activities Com Dieted or Underway to Date
. Acquisition and clearance of all previously-existing West Area properties.
. Platting of all previously-existing parcels to establish appropriate development
sites with clear title, and to reserve rights-of-way for improved street system.
. Minor adjustment of Golden Valley/51. Louis Park city limits.
. Construction of regional storm water detention pond.
. Construction of redesigned internal street system.
. Remediation of soil and groundwater pollution generated by former uses.
· Holiday Inn Express development - 83-unit motel, now expanded to 109 units,
with plans for additional future expansion.
. CyberOptics development - 91,000 square foot office/industrial facility.
Current Action Plan CornDonents
. Completion of any necessary soil corrections as part of site development work.
. Development of 70,000 to 80,000 square foot office/industrial facility on site
north of Golden Hills Drive.
. Development of 65,000 to 90,000 square foot office/industrial facility or office
building on site south of Golden Hills Drive.
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Resolution 98-7
EXHIBIT A
September 8, 1998
Central Area
This sub-area was the earliest focus of activity in Golden Hills, with proposals
under consideration for today's Colonnade office tower as soon as the
redevelopment plan was in place. Redevelopment efforts lost steam as the real
estate market took a downturn in the late 1980's, but market recovery and the
completion of 1-394 have combined to make the area very attractive to developers
once again. (Exhibit D)
Boundaries and Size
Bounded on the west by the Soo Line railroad, on the south by the adjusted city
limitsll-394 fence line, on the east by Turners Crossroad, and on the north by
Laurel Avenue.
Approximately 42.7 acres in size.
Oriainal land Use Characteristics (1984)
. Mix of industrial, commercial, and hospitality/service uses, not always correctly
zoned.
· Numerous other zoning nonconformities, including inadequate on-site parking,
inadequate or nonexistent landscaped areas, structures too big for sites, and
unscreened outdoor storage of equipment or materials.
. Increasing building and fire code violations, structural decline, and building
vacancy.
. Traffic congestion on Turners Crossroad approaching Highway 12.
. Very limited east-west circulation options.
. No part of area ever platted, extreme variation in parcel sizes, several parcels
of inadequate size or poor configuration for optimized site use.
Known/Anticioated 1-394lmoacts (1984)
. 1-394 interchange at Xenia Avenue with associated detachment of local
frontage road segment, requiring significant right-of-way acquisition.
. Change in north/south traffic circulation patterns, and associated change in
orientation of some building "fronts" due to highway approach route shifting
from Turners Crossroad to Xenia Avenue.
. Reduced traffic congestion, but potential negative impacts on businesses
abutting highway, due to detached location of new frontage ro.ad.
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Exhibit D: Golden Hills Central Area
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Resolution 98-7
EXHIBIT A
September 8, 1998
Planned Characteristics
Mix of medium to high density office, service, and light industrial uses. Highest
densities and greatest emphasis on office uses immediately adjacent to 1-394.
Structured parking encouraged in order to maximize site density without
compromising green space. Provision of improved access and circulation system.
Some existing buildings may be suitable for retention with aesthetic and code
compliance improvements.
Activities Com Dieted or Underway to Date
. Construction of missing Laurel Avenue segment.
. MnDOT construction of. 1-394 access elements.
. HRA acquisition of excess 1-394 right-of-way remnants.
· Minor adjustment of Golden Valley/St. Louis Park city limits.
· Colonnade office development - 409,000 square feet of office and related
service uses in 15-story-high building with associated parking ramp.
Current Action Plan ComDonents
. Minor acquisition of additional Xenia Avenue right-of-way between detached
frontage road (Golden Hills Drive) and Laurel Avenue, plus completion of road
and signalization work to accommodate new development.
· Acquisition of properties in block bounded by Xenia Avenue, 1-394, the
railroad tracks, and Golden Hills Drive.
· Potential acquisition of properties lying north of Golden Hills Drive on both
sides of Xenia Avenue.
. Completion of development on Colonnade block.
. Development of 200,000 to 300,000 square foot office building with associated
parking deck and related service uses at southwest quadrant of Xenia/Golden
Hills Drive.
. Potential cooperation with owner of Olympic Printing on expansion/upgrading
or demolitionlredevelopment of printing facility at northwest quadrant of
Xenia/Golden Hills Drive, or redevelopment of the site by others.
. Development of 130,000 to 230,000 square foot office building on the block
northeast of the Xenia/Golden Hills Drive intersection.
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Resolution 98-7
EXHIBIT A
September 8, 1998
East Area
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When Golden Hills was first established, and again in the late 1980's, there was
some discussion of possibly expanding the East Area to taRe in some or all of the
residential neighborhood to the north, but the idea had little serious potential.
There has been almost no redevelopment activity in this sub-area to date, partly
due to the impact of the adjacent 1-394 construction process. (Exhibit E)
Boundaries and Size
Bounded on the west by Turners Crossroad, on the south by the city limits/l-394
fence line, on the east by the Highway 100/1-394 interchange, and on the north by
the nursing home and row of single family lots lining the south side of Circle Down.
Approximately 9.6 acres in size.
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Oriainal Land Use Characteristics (1984)
· Golden Hills strip shopping center (source of redevelopment area name) and
other commercial or service uses on poorly differentiated individual land
parcels.
. Two-building apartment complex containing 24 dwelling units.
. Vacant land with poor soil conditions.
. Numerous zoning nonconformities, including inadequate on-site parking,
inadequate or nonexistent landscaped areas, structures too big for sites, and
unscreened outdoor storage of equipment or materials.
. Increasing building and fire code violations and structural decline.
. Traffic congestion on Turners Crossroad approaching Highway 12.
Known/Anticipated 1-394 Impacts (1984)
· Significant right-of-way acquisitions along south side of commercial properties.
· Substantial limiting of highway access to commercial properties with shift of
access route from Turners Crossroad to Xenia Avenue.
Planned Characteristics
Continued commercial use, including office or service facilities, with continued
medium density residential use an acceptable alternative for existing apartment
site. Provision of adequate buffering to protect adjacent residential neighborhood
to the north.
.
15
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Exhibit E: Golden Hills East Area
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Resolution 98-7
EXHIBIT A
September 8, 1998
Activities Comoleted or Underway to Date
. . MnDOT construction of 1-394 project elements.
· Acquisition of former Emergency Veterinary Clinic prop~.rty.
· HRA-assisted turn-back of excess 1-394 right-of-way to owners of Golden Hills
Shopping Center.
Current Action Plan Comoonents
· Improvement or redevelopment of Golden Hills Shopping Center, incorporating
former Emergency Veterinary Clinic property and excess 1-394 right-of-way
into a Planned Unit Development with office, hotel, restaurant, and/or retail
uses served by adequate and well-located public access and parking.
South Area
.
This sub-area constitutes one end of a large redevelopment site that spans the
Golden Valley/S1. Louis Park city limits. For many years, the entire site has been
held by a developer whose long-range plans include eventual demolition of
existing buildings and construction of a new office park. Discussions between the
. developer and both cities have been intermittent but generally ongoing since the
establishment of Golden Hills. (Exhibit F)
Boundaries and Size
Bounded on the west and south by the city limits, and on the east and north by the
Highway 100/1-394 interchange.
Approximately 7.1 acres in size.
Oriainal Land Use Characteristics (1984)
. Office uses in three buildings on poorly differentiated land parcels.
. Parking area for restaurant building located in S1. Louis Park.
· Moderate zoning nonconformities, including inadequate on-site parking and
inadequate or nonexistent landscaped areas.
Known/Anticioated 1-394lmoacts (1984)
. Minimal, if any, permanent right-of-way acquisitions.
· Substantial limiting of highway access, with nearest access point at Xenia
Avenue (known as Park Place on S1. Louis Park side of 1-394).
.
17
Resolution 98-7
EXHIBIT A
September 8, 1998
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18
Resolution 98-7
EXHIBIT A
September 8, 1998
.
Planned Characteristics
Continued office use as part of larger, medium to high den~ity office park.
Activities ComDleted or Underway to Date
. 1-394 frontage road system is in place.
Current Action Plan ComDonents
· Coordination of redevelopment process with St. Louis Park, including possible
detachment and annexation between cities.
Xenia Avenue Extension Area
.
This new sub-area of Golden Hills, as its name implies, will allow for the extension
of Xenia Avenue northward from Laurel Avenue to a new terminus at Turners
Crossroad north of Glenwood Avenue. The street extension will alleviate a
hazardous intersection at Glenwood Avenue and Turners Crossroad as well as
simplifying the poorly-defined north/south access route between the Central Area
and the rest of Golden Valley. (Exhibit G)
Boundaries and Size
Bounded on the west by a westerly branch of the Soo Line railroad, on the south
by Laurel Avenue, on the east by Turners Crossroad, and on the north by
Glenwood Avenue and an easterly branch of the Soo Line Railroad.
Approximately 38.3 acres in size.
Oriainal Land Use Characteristics (1998)
. Mix of low to high density residential uses, not always correctly zoned, plus a
church campus and City fire station.
. Unplatted and oversized single-family residential parcels, resulting in inefficient
use of available land; two parcels with no street access.
· Rarely-used spur segment of Soo Line Railroad located in close proximity to
alternate branch of same line, with associated excess railroad right-of-way.
.
Planned Characteristics
Medium to high density residential use except for church campus, City fire station,
and possible expansion of adjacent school campus. Some land may be reserved
for regional storm water detention pond to serve adjacent Central Area.
19
Exhibit G: Golden Hills
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Resolution 98-7
EXHIBIT A
September 8,1998
.
Activities Comoleted or Underway to Date
· Preliminary design study for Xenia Avenue alignment.
. Acquisition of two single family properties.
. Acquisition of excess railroad right-of-way.
.
Current Action Plan Comoonents
· Partial or complete acquisition of other parcels as necessary to provide
adequate Xenia Avenue extension corridor or to accomplish other
redevelopment purposes.
. Construction of Xenia Avenue extension.
· Construction of regional storm water detention pond, if determined to be
feasible and in the best interests of the Golden Hills area.
· Partial closure of access to and from Turners Crossroad, limiting it to
neighborhood use.
· Potential sale of excess land to Independent School District 270 for use by
Meadowbrook School.
· Sale, and incorporation into appropriate adjacent sites, of any excess land not
needed for public improvements or other redevelopment purposes.
.
21
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Part III: IMPLEMENTATION
..
Plan Amendment
The Golden Hills Redevelopment Plan may be amended from time to time as
required for adjustment to changing conditions. Approval of any such amendment
must be undertaken in accordance with applicable provisions of state law.
A plan amendment may be made at any time before or after the lease or sale of
property within the redevelopment area as long as both the HRA and City Council
take formal action to approve the amendment following notice and public hearing
as required for adoption of the original plan.
Where the HRA determines that a change in the plan is necessary, and further
determines that such change does not alter or affect overall redevelopment area
boundaries, nor does it depart substantially from the general land uses
established in the plan, such change shall not constitute an amendment to the
approved Golden Hills Redevelopment Plan and shall not require City Council
approval.
Relocation
The HRA will provide relocation benefits and assistance to owners and tenants
displaced by Golden Hills redevelopment activities. To ensure full compliance
with applicable state and federal statutes and regulations, the HRA will secure the
services of qualified relocation experts to carry out the relocation work. Relocation
personnel will conduct interviews with each affected owner or tenant to determine
relocation needs, and will be conveniently available to any affected owner or
tenant for the purpose of providing information regarding owner and tenant rights
relative to relocation services and compensation.
Financing of Activities
Costs incurred by the Golden Valley HRA in its Golden Hills redevelopment
activities fall into several categories. These include land acquisition, building
demolition, business and household relocation, environmental remediation, public
improvements such as streets and utilities, and administrative costs. The original
22
Resolution 98-7
EXHIBIT A
September 8, 1998
.
redevelopment plan identified four funding sources that might be used to cover
certain types of costs: tax increment financing, joint acquisition of properties
between MnDOT and the HRA, Community Development Block Grants, and sale
of land to developers. To varying extent, as discussed in th~ following
paragraphs, most of those four sources are still available today.
Tax Increment Financina (TIF)
The Golden Hills redevelopment area includes a formally designated TIF district.
The TIF mechanism allows Golden Valley's HRA to finance its activities
throughout the redevelopment area from taxes generated by "captured" increases
in taxable value. In most cases financing occurs in the form of tax increment
bonds issued at the onset of any given redevelopment project. The detailed TIF
plan required by state law is contained in a companion document to this
redevelopment plan, but a brief explanation of TIF may be helpful here.
.
The taxable valuation of a TIF district is "frozen" when the district is created. Over
the life of the district, taxes on this base valuation continue to be collected and
distributed among all authorized taxing jurisdictions as usual. As redevelopment
activities generate increased valuation for properties within the district, taxes on
the amount of valuation over and above the base valuation are disbursed directly
to the HRA on an annual basis. These captured moneys are known as tax
increment. The debt service on the bonds issued to finance the redevelopment
activities is repaid from the annual tax increment. Tax increment not needed for
debt service on the bonds can be used to directly finance additional
redevelopment expenditures. When the TIF district expires, taxes on total current
valuation are once again collected and distributed among all authorized taxing
jurisdictions just as they were before the creation of the district.
Joint ACQuisition
Certain properties in Golden Hills were so situated as to be candidates for both
HRA redevelopment activities and MnDOT 1-394 right-of-way. During the 1-394
final design and acquisition stages, the HRA worked with MnDOT to identify such
properties and acquire them jointly, with MnDOT retaining possession of the
portion of each affected property needed for highway purposes and the HRA
taking the remainder for assembly into suitable redevelopment sites. This
coordinated approach allowed the two agencies to share costs for appraisals,
relocation, site clearance, and other related activities in addition to actual land and
building purchase costs. Now that 1-394 is finished, this funding source has
terminated; however, the HRA and MnDOT continue to cooperate on such
activities as fine-tuning the highway right-of-way limits to maximize the
redevelopment potential of adjacent sites.
.
23
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Community DeveloDment Block Grants (CDBG)
The City of Golden Valley receives an annual allocation of federal COBG money
by way of Hennepin County. Those funds can be used for r~development
activities that serve to eliminate urban blight. Through the late 1970's and the
1980's, Golderl Valley's HRA put COBG money into all three of the City's
redevelopment areas. By the late 1980's, increasing regulatory strings on the use
of COBG funds and ongoing federal debate over the future of the entire program
caused the City to divert its annual allocation to other purposes, but the possibility
of using COBG money in Golden Hills remains open today. -
Sale of Land to DeveloDers
In order to promote redevelopment in accordance with the Golden Hills plan, the
HRA's practice is to sell assembled sites to developers at values approximating
the prevailing market rate for vacant land. Although the income from such land
sales does not cover all HRA costs of acquisition, clearance, and site preparation,
land sales are a source of income contributing to financing of ongoing HRA
activities.
24
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.
.
Resolution 98-7
Wisconsin Office:
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005-5935
(414) 782-8222
EXHIBIT A
September 8, 1998
Tax Increment Financing Plan for
Golden Hills Redevelopme,nt
Tax Increment Financing District
Home Office:
85 East Seventh Place
Suite 100
St. Paul, MN 55101-2887
(651) 223-3000
Minneapolis Office:
88 South Sixth Street
Suite 900
Minneapolis, MN 55402-1800
(612) 333-9177
Iowa Office:
100 Court Avenue
Suite 204
Des Moines, IA 50309-2200
(515) 244-1358
Washington Office:
1850 K Street NW
Suite 215
Washington, D.C. 20006-2200
(202) 466-3344
Kansas Office:
7211 West 98th Terrace
Suite 100
Overland Park, KS66212-2257
(913) 345-8062
Resolution 98-7
Table of Contents
EXHIBIT A
September 8, 1998
.
Paae( s)
SECTION 1.................................................................................................................................. 1-1
Statutory Authority ................................................................:.............................................. 1-1
-
SECTION 2..................................................................................................................................2-1
Statement of Objectives ........................................................................................................ 2-1
General.... .......... .............. ................. ......... ............................ ...... ........ .................. ................ ..........2-1
Coordination with 1-394 Project......................................................................................................2- I
Blight Removal... ............ .............. ..... ....... ............. ...... ........... ............ ............ ...... ............ ... ........ ....2-2
Redevelopment Land Use....... ......... ...... ......... .......... ............. ......... ... ...... ........... .... ... ............... .......2-2
Private Investment ....... .................. .......... ....... ............ ......... .................... .......... .... .......... .... ....... .....2-3
Circulation ... .......... .................. ............. ........... .......... ..... ........... .... ............. ............. .... ........ ..... .......2-3
Relocation....... ....... ..... ..... ........ ..... ........ ............... ...... ... ........ .................. ........ ............ .... ....... .... ......2-3
SECTION 3.................................................................................................................................. 3-1
Development Program.......................................................................................................... 3-1
I. Phase I.................................................................................................................................... 3-1
2. Phase II .................................................................................................................................. 3-2
3. Phase III .................................................................................................................................3-3
4. Phase IV ................................................................................................................................. 3-3
5. General. ............ ........ ........................... .... ...... ............... ............ .............. .............. ....... ........... 3-4
6. Projects Reflected in Amended Budget ................................................................................. 3-4
SECTION 4........................................ ............................... .... ....................................................... 4-1
.
Description of Property in the Golden Hills Redevelopment
Tax Increment Financing District ..................................................................................... 4-1
SECTION 5.......................................... ........ ................................................................ ................ 5-1
Classification of the Tax Increment Financing District ....................................................... 5-1
SECTION 6.................. ............. ................................................................... ................................ 6-1
Estimate of Costs ..................................................................................................................6-1
Amended Budget As Adopted: October _ 1998: .................................................................... 6-3
SECTION 7...................................... .......................... ....................... ........................................... 7-1
Estimated Amount of Bonded Indebtedness.......................................................................... 7-1
Section A . ...... ............ .................... ............ ............. ...... ................... ..... ......................... ...... ....... ..... 7-1
Section B - Amended Budget ......................................................................................................... 7-1
SECTION 8............. ............... .......... ........................................ .................................................... 8-1
Sources of Revenues ............................................................................................................. 8-1
SECTION 9................ .......................................... ..... ........................... ................. ....................... 9-1
Original Assessed Value .......................................................................................................9-1
SECTION 10............................. ........................... ...................................................................... 10-1
Estimated Captured Assessed Value................................................................................... 10-1
SECTION 11.............................................................................................................................. 11-1
.
Duration of the District ......................................................................,................................ 11-1
SECTION 12.............................................................................................................................. 12-1
Estimated Impact on Other Taxing Jurisdictions ............................................................... 12-1
~ SPRINGSTED
REPORTSIMNIGOLDHIL7,TIF
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Table of Contents
SECTION 13................. .......................................................................... ................................... 13-1
Modifications of the Tax Increment Financing District ..........;.......................................... l3-1
SECTION 14............................................................................ ... ................ ............................... 14-1
Limitation on Administrative Expenses .............................................................................. 14-1
SECTION 15................................................................................................... ........................... 15-1
Limitation on Duration of Tax Increment Financing Districts........................................... 15-1
SECTION 16.......................................................................... .................................................... 16-1
Limitation on Qualification of Property in Tax Increment District
Not Subject to Improvement ............................................................................................ 16-1
SECTION 17..................................................... ...................................... ................................... 17-1
Limitation on the Use of Tax Increment ............................................................................. 17-1
SECTION 18........ ...................................................................................................................... 18-1
Notification of Prior Planned Improvements ..................................................................... 18-1
SECTION 19.................. .......................................................... .................................................. 19-1
Excess Tax Increments ....................................................................................................... 19-1
SECTION 20...................................................... .................................................................... .... 20-1
Requirement for Agreements with the Developer ................................................................20-1
SECTION 21.................. ..... ................................. ....................................... ..... .......................... 21-1
Assessment Agreements ......................................................................................................21-1
SECTION 22............... ................................. ...... ........ ......... ............ ................. ....... ............. ....... 22-1
Administration of the Tax Increment District
and Maintenance of the Tax Increment Account .............................................................22-1
SECTION 23......... ....................... .......................... ........................................... .......................... 23-1
Annual Disclosure Requirements ....................................................................................... 23-1
~ SPRINGSTED
Pageii
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Resolution 98-7
EXHIBIT A
September ~e~fibt 1
STATUTORY AUTHORITY
The Housing and Redevelopment Authority of the City of Golden Valley (the "HRA") and the
City of Golden Valley (the "City") have previously adopted the Golden Hills Redevelopment Plan
for the development and redevelopment of property described therein and in Section D hereof.
The Redevelopment Plan describes a redevelopment project, as defined by Minnesota
Statutes, Section 462.421, Subd. 13, to be undertaken by the HRA and the City within the
project area to be financed primarily by one or more tax increment financing districts to be
created within the project area and the sale of tax increment bonds to be repaid by the
increments generated by said districts. The City of Golden Valley is authorized to establish a
tax increment district within the project area pursuant to Minnesota Statutes, Section 273.71-78.
The district created herein is hereinafter sometimes referred to as the "Golden Hills
Redevelopment Tax Increment Financing District."
~ SPRINGSTED
Page 1-1
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Section 2
STATEMENT OF OBJECTIVES
Objectives of the Cify of Golden Valley in undertaking the Golden Hills Redevelopment Project,
to be accomplished through tax increment financing, are outlined as follows in the Golden Hills
Redevelopment Plan adopted by the Golden Valley City Council on October 16, 1984:
General
1. Improvement of currently unsightly Trunk Highway 12 frontage to create an attractive City
of Golden Valley 1-394 corridor in the vicinity of Turner's Crossroad.
2. Reversal of deterioration and degradation of current Trunk Highway 12 frontage in the
area of Turner's Crossroad.
3. Stimulation and coordination of area redevelopment not possible without public subsidy to
private investment.
4. Provision for orderly physical and economic growth of the area through controlled
development and redevelopment.
5. Strengthening and increase of the area tax base.
Coordination with 1-394 Project
6. Taking advantage of the incentive for upgrading of land use provided by 1-394 freeway
construction as a catalyst to further redevelopment of the area.
7. Coordination of upgrading of land uses and redevelopment of the area with upgrading of
Trunk Highway 12 to 1-394 status.
8. Minimizing of public costs of 1-394 right-of-way acquisition and redevelopment site
acquisition through joint MnDOT and City of Golden Valley HRA purchase of properties.
9. Coordination of redevelopment time schedules with 1-394 construction time schedules in
order to minimize construction period inconvenience.
10. Integration of remnant parcels resulting from 1-394 project right-of-way acquisition into
redevelopment parcels.
~ SPRINGSTED
Page 2-1
Resolution 98-7 EXHIBIT A September B 1998
Golden Hills Redevelopment Tax Increment Financlrig District
. Blight Removal
11. Removal and replacement of dilapidated, deteriorated and vacqnt buildings which
constitute a blight on the area.
12. Removal and replacement or rehabilitation and upgrading of obsolete buildings and
buildings with code deficiencies which have a blighting influence on the area.
13. Redevelopment or upgrading of properties which are unsightly due to lack of aesthetic
amenities including landscaped yards, paved parking area, and curb separation of
landscaped and paved area, or due to location of loading docks on building street front.
14. Removal of buildings which are overcrowded on small lots resulting in inadequate parking,
nonconforming inadequate landscaped yard areas, and lack of space for normal business
expansion.
15. Clearance and assembly of overdeveloped small lots into larger scale redevelopment
sites allowing space for adequate parking, required landscaped yards, and anticipated
business expansion.
16. Elimination of unsightly land uses, including unscreened outside storage of equipment and
materials, which constitute a blight on the area and surrounding areas and adversely
impact land values and marketability of surrounding properties.
.
17. Elimination and replacement of deleterious and inappropriate land uses incompatible with
surrounding land uses and detrimental to surrounding property values.
18. Redevelopment or development of underutilized properties which. have potential for
greater contribution to the tax base and economic welfare of the community.
19. Development of vacant land blighted by virtue of difficult physical character of the ground,
including poor soils conditions, resulting in stagnant and unproductive condition of land
potentially useful.
20. Elimination or correction of difficult physical character of the ground, including poor soils
conditions, allowing development of vacant land and making the land useful and valuable.
Redevelopment land Use
21. Realization of highest and best use of properties bordering 1-394 in the vicinity of Turner's
Crossroad in the City of Golden Valley.
22. Provision of assembled redevelopment sites to accommodate more intense land uses
appropriate directly adjacent to the 1-394 freeway.
.
23. Provision of desired expansion space for the commercial center located to the east of
Turner's Crossroad.
~ SPRINGSTED
Page 2-2
.
.
.
Resolution 98-7 EXHIBIT A September 8, 1998
Golden Hills Redevelopment Tax Increment Financing District
24. Provision of assembled redevelopment sites to accommodate industrial operations with
future expansion potential.
25. Rearrangement of land uses in the area resulting in more functional and complementary
land use relationships.
Private Investment
26. Minimizing of public redevelopment costs by encouraging private redevelopment in the
area and by promoting cooperation or participation of existing landowners in
redevelopment projects.
27. Encouragement of upgrading by owners and tenants of existing commercial and industrial
buildings and properties not targeted for redevelopment.
Circulation
28. Redesign in conjunction with the 1-394 project of local traffic circulation patterns and
intersections in order to eliminate existing traffic hazards and points of traffic congestion,
including inadequate separation of frontage road intersections from Trunk Highway 12
intersections.
29. Reorientation of building-fronts to adjust to changes in street frontages resulting from the
1-394 project.
Relocation
30. Provision of relocation sites and opportunities for expansion to existing businesses
within the redevelopment area which are displaced by redevelopment and which are
compatible with designated redevelopment uses for the area.
31. Minimizing of potential hardships created by relocation out of the area of conflicting or
incompatible land uses.
Fj SPRINGSTED
Page 2-3
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Section 3
DEVELOPMENT PROGRAM
The Golden Hills Redevelopment Project, to be financed with tax increment financing,
encompasses an area of approximately 83 acres located to the north of proposed 1-394,
currently Trunk Highway 12, in the vicinity of Turner's Crossroad. The total project is
scheduled for accomplishment in four phases as follows:
1. Phase I
The Phase I project area, consisting of approximately 18 acres, is the portion of the tax
increment financing district located between Turner's Crossroad and Xenia Avenue
South.
A.
Current Land Use
Existing land uses include a vacant former restaurant building, a print shop in a
former residential structure, and a veterinary hospital, all fronting on the Trunk
Highway 12 service road. A convenience food store and gasoline station are
located in two separate buildings on a small parcel to the north and fronting on
Turner's Crossroad. A multi-tenant office warehouse building and two single
occupant office warehouse buildings occupy the remainder of the area to the
north.
B.
Proposed Reuse of Land
Major portions of properties fronting on the current Highway 12 service road are
included in Minnesota Department of Transportation (MnDOT) acquisition plans
for 1-394 right-of-way.
A redevelopment site approximately seven acres in area is scheduled for
acquisition, clearance, and transfer to a development partnership for
redevelopment. The redevelopment site includes a remnant of the restaurant
property. the multi-unit office warehouse building, one of the two single tenant
office warehouse buildings. and the gas station and convenience food store
property.
The City of Golden Valley Housing and Redevelopment Authority (HRA) on
April 9, 1985 passed a resolution jointly designating Turner Development
Corporation and United Suites of America as developers of the site. Planned land
uses include a thirteen-story 259,000 square foot office building and an
eleven-story 300-suite hotel with a parking ramp sized to accommodate the
combined office and hotel uses.
The Phase I project schedule calls for land acquisition in 1985,' construction start
in 1986. and project completion by the end of 1987.
Fj SPRINGSTED
Page 3-1
Resolution 98-7 EXHIBIT A September 8, 1998
Golden Hills Redevelopment Tax Increment Financing District
. 2. Phase II
The Phase 11 project area, consisting of approximately 16.5 acres, is the portion of the
tax increment financing district located to the east of Turner's Crossroad.
A. Current Land Use
The Phase 11 project area is dominated by the Golden Hills Shopping Center to the
northeast of the intersection of Turner's Crossroad with Trunk Highway 12. Intruding
into the shopping center property are a gasoline station on the corner of the frontage
road with Turner's Crossroad and a veterinary clinic on the corner of the alley behind
the shopping center with Turner's Crossroad. Buildings to the east of the shopping
center along the Trunk Highway 12 frontage road include a Bridgeman Ice Cream
Store and Golden Hills Drug Store housed in the same building on one parcel, a
medical/dental clinic on the next parcel to the east, and a real estate office at the
intersection of Trunk Highway 12 with Trunk Highway 100. Between the clinic and
real estate office is an area of vacant land which remains undeveloped due to poor
soils conditions. To the northeast of the shopping center is the Mayfair Manor
Apartment Complex consisting of two apartment buildings.
B.
Proposed Reuse of Land
.
MnDOT plans for 1-394 construction include removal of the gasoline station and
portions of properties fronting on current Trunk Highway 12.
Phase 11 redevelopment project plans call for creation of one major redevelopment
parcel approximately 7.5 acres in area. The redevelopment parcel is assembled
from remnant parcels following 1-394 right-of-way acquisition to the east of the
shopping center and from Mayfair Manor Apartment property.
First priority for reuse of redevelopment lands will be expansion of the Golden Hills
Shopping Center to the east with additional retail and restaurant space. Plans call for
height of up to four stories with office use included on upper levels above retail use.
For planning purposes, additional new construction is expected to include
approximately 35,000 square feet of additional retail space, 10,000 square feet of
additional restaurant space, and 60,000 square feet of office space.
The Golden Valley HRA on March 12, 1985 heard proposals from two potential
developers for the Phase II redevelopment project.
The Phase 11 project schedule calls for land acquisition in 1986, construction start in
1987, and project completion by the end of 1988.
.
~ SPRINGSTED
Page 3-2
Resolution 98-7 EXHIBIT A September 8, 1998
Golden Hills Redevelopment Tax Increment Financing District
. 3. Phase III
The Phase III project area, consisting of approximately 17.5 acres, is the portion of the tax
increment financing district located between Xenia Avenue South and the railroad line.
A. Current Land Use
Parcels fronting on the Trunk Highway 12 service road between Xenia Avenue South
and the railroad fine include a furniture wholesaler, a tire service store, the Breck
School Ice Arena, a vacant former farmhouse, and two small office buildings on
small lots. The remainder of the Phase III area is occupied by four single occupant
office warehouse or office manufacturing users on relatively large lots.
B. Proposed Reuse of Land
A redevelopment site of at least four acres in area is contemplated for acquisition,
clearance, and transfer to a developer for redevelopment. The redevelopment site
includes properties fronting on the Trunk Highway 12 service road to the west of the
furniture wholesaler. The furniture wholesale operation and other light industrial uses
to the north are not included in preliminary redevelopment project planning, but may
be included in a redevelopment project as necessary for project scale.
.
For planning purposes, redevelopment use consists of approximately 160,000
square feet of office space. Anticipated building height is four to six stories.
Incorporation of a restaurant into the office complex is a possibility.
The Phase III project schedule calls for land acquisition in 1987, construction start in
1988, and project completion by the end of 1989.
4. Phase IV
The Phase IV project area, consisting of approximately 31 acres, is the portion of the tax
increment financing district located to the west of the railroad line.
A. Current Land Use
Current land use in the Phase IV project area consists primarily of industrial uses.
Properties fronting on the Trunk Highway 12 service road to the west of the railroad
line include a building belonging to the railroad and five other buildings all crowded
on parcels of inadequate size. Two major users of property in terms of acreage are
Phillippi Equipment Company and the Bury and Carlson asphalt plant, both of which
utilize large areas for unscreened storage of equipment and materials.
B.
Proposed Reuse of Land
.
Almost the entire area west of the railroad line is included in the Phase IV
redevelopment project area for acquisition, clearance and transfer to developers for
redevelopment. Anticipated redevelopment uses include office development along
~ SPRINGSTED
Page 3-3
.
.
.
Resolution 98-7 EXHIBIT A September 8,1998
Golden Hills Redevelopment Tax Increment Financing District
the future 1-394 frontage with light industrial uses to the north. For planning
purposes, redevelopment uses include 80,000 square feet of office building and
250,000 square feet of office/warehouse building construGtion. Inclusion of multiple
family residential construction in the northern portion along Laurel Avenue is a
suggestton under consideration.
The Phase IV project schedule calls for land acquisition in 1987, construction start in
1988, and project completion by the end of 1989.
5. General
The redevelopment parcels to be assembled in Phases I-IV, in whole or in part by land
acquisition by the HRA, are identified on maps contained in the Redevelopment Plan,
which is incorporated herein by reference.
6. Projects Reflected in Amended Budget
See Golden Hills Redevelopment Plan - Part II: Redevelopment Plan Components
(specifically the sections titled West Area and Xenia Avenue Extension Area).
~ SPRINGSTED
Page 3-4
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Section 4
DESCRIPTION OF PROPERTY IN THE GOLDEN HILLS
REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT
The Golden Hills Redevelopment Taxlncrement Financing District, which includes a large
portion of the project area described in the Redevelopment Plan, which project area description
is incorporated by reference, includes Trunk Highway 12 frontage in the City of Golden Valley
from Colorado Avenue on the west to Trunk Highway 100 on the east. To the west of Turner's
Crossroad, the Golden Hills Tax Increment Financing District extends north to Laurel Avenue
covering an area bounded by the City of Golden ValleylCity of St. Louis Park municipal
boundary line on the south, Colorado Avenue on the west, Laurel Avenue on the north and
Turner's Crossroad on the east. To the east of Turner's Crossroad, the Golden Hills Tax
Increment Financing District includes all parcels fronting directly on Trunk Highway 12 from the
Golden Hills Shopping Center to the real estate office property at the intersection with Trunk
Highway 100, also the shopping center parking area to the north of the Golden Hills Shopping
Center and the Mayfair Manor Apartment property to the northeast of the Golden Hills Shopping
Center.
Included as Exhibits IV, V, and VI are a map of the Golden Hills Redevelopment Tax Increment
Financing District, a legal description of the boundaries of the District, and a listing of the
Hennepin County property identification numbers of all parcels within the District.
~ SPRINGSTED
Page 4-1
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Section 5
CLASSIFICATION OF THE TAX INCREMENT FINANCING DISTRICT
The tax increment financing district will be classified as a redevelopment district pursuant to
Minnesota Statutes, Section 273.73, Subd. 10, which defines a redevelopment district as:
"A type of tax increment financing district consisting of a project, or portions of a project, within
which the Authority finds by resolution that one of the following conditions, reasonably
distributed throughout the district, exists:
(1) 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other
improvements and more than 50 percent of the buildings, not including outbuildings, are
structurally substandard to a degree requiring substantial renovation or clearance; or
(2) 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other
improvements and 20 percent of the buildings are structurally substandard and an
additional 30 percent of the buildings are found to require substantial renovation or
clearance in order to remove such existing conditions 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
community; or
(3) Less than 70 percent of the parcels in the district are occupied by buildings, streets,
utilities or other improvements, but due to unusual terrain or soil deficiencies requiring
substantial filling, grading or other physical preparation for use at least 80 percent of the
total acreage of such land has a fair market value upon inclusion in the redevelopment
district which, when added to the estimated cost of preparing that land for development,
excluding costs directly related to roads as defined in section 160.01 and local
improvements as described in section 429.02 1, subdivision 1, clauses I to 7, 11 and 12,
and section 430.01, if any, exceeds its anticipated fair market value after completion of
said preparation; provided that no parcel shall be included within a redevelopment district
pursuant to this paragraph (3) unless the Authority has concluded an agreement or
agreements for the development of at least 50 percent of the acreage having the unusual
soil or terrain deficiencies, which agreement provides recourse for the Authority should the
development not be completed; or
(4) The property consists of underutilized air rights existing over a public street, highway or
right-of-way; or
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Page 5-1
.
.
.
Resolution 98-7 EXHIBIT A Se.otember 8 1998
Golden Hills Redevelopment Tax Incremenr F-7nancing D/s1rict
(5) The property consists of vacant, unused, underused, inappropriately used or infrequently
used rail yards, rail storage facilities or excessive or vacated railroad rights-ot-ways.
For purposes of this subdivision, "structurally substandard" shad mean containing defects
in structural elements or a combination of deficiencies in essential utilities and facilities,
light and ventilation, fire protection including adequate egress, layout and condition of
interior partitions, or similar factors, which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance. "Parcel" shall mean a tract or
plat of land established prior to the certification of the district as a single unit for purposes
of assessment."
The property within the Golden Hills Tax Increment Financing District has been inspected by
officials of the City, and based upon such inspection, it is determined that the district will
constitute a redevelopment district pursuant to subsections (2) above, to wit:
70 percent of the parcels in the district are occupied by buildings, streets, utilities or other
improvements and 20 percent of the buildings are structurally substandard and on
additional 30 percent of the buildings are found to require substantial renovation or
clearance in order to remove such existing conditions as: inadequate street layout,
incompatible uses or land use relationships, overcrowding of buildings on the land,
obsolete buildings not suitable for improvement being of the community.
~ SPRINGSTED
Page 5-2
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Section 6
ESTIMATE OF COSTS
Tne estim:::ttes totar public rese':elopment costs 'l:i11 be pais fr:em the proceeds of mbllti~le bond
issues, laRs sole r.ovenbles, aRs interost inGeme. It is estimates the. net puelic r:esevelapment
cost '::i11 be $27,150,000, ans '::i11 be e>Ependes iR feblr phases o':er a three year perios from
1985 throblgh 1987.
The total estimated Gosts ans SOblrse ef funss is sho'lm hereafter by Phase ans by ye3r.
PH/\SE I
lansl\CGlblisitioR
Relocation
DemolitioR
1985
$~,ee3,200
~25,000
198e
1987
$
450,500
3e~, 110
212,000
37,100
53,000
55,8~0
55,840
$
8blrying Po'....er lines
Street LifiJhting
Str~ot CeRstr-t:lstioR
Reme'le Rail liRe
ReGORstrblst Tblrner's Crossrooss
CentiRgeRGies (5 If>
Administration 8. Legal (5%)
Capitalizes IRterest
Bond OisGeblnt
Less: Land Sale Re':enue
IRter~st Earnings
224,720
178,e50
20, 170
20, 170
254,~10
25~,~10
1,380,880
100,000
(327,900)
(200,000)
$e,550,000
(1,228,390)
(4<13,710)
Net Estimates Cest (Ph3se 1)
$
$
PH.^.SE II
Land /\cGll::lisitien
ReleGatian
Demelitian
Bblrying Pe'Ner Lines
Street lighting
Str~et Canstrblctien
CaRtingeRcies (5%)
AdmiRistration 8. Legal (5%)
1985
198e
$~.~07,900
385,8~0
137,800
1987
$
$
2~e,575
246,575
$5, ~24,e90
4~8,OOO
72,800
177,099
3~,800
3~,800
$757,~00
Sblbtotal (8y Phase)
~ SPRINGSTED
Page 6-1
.
.
.
Resolution 98-7 EXHIBIT A September 8, 1998
Golden Hills Redevelopment Tax Increment Financing District
PH:\SE III
Land .^.cquisitiQn
Releo:ltien
Demelition _
81::1rying Pewer lines
Strl:let Lighting
Reaa Imf')rlJ'/ement
Contingencies (5%)
AdministratieR &. Legal (5%)
Less: Re':onue from l::ma Sales
SlJbtetal (By Phase)
PH/\SE IV
Land /\squisitien
Reloc:atien
Demelitien
Burying Pewer Linos
Street Lighting
Street CQnstrl::lctien
Utility Ex-tensien
Contingensies (5%)
Administratien &. Legal (5%)
less: Re'.'enl::le frem Lana Sales
Subtotal (By Phase)
Subtotal (/\11 Phases)
Bond Diss91::1nt
C3f')italizea InteFast
Less: Interest Earnings
Net I!!stimated Costs
1Q85
198e
1Q87
$1,611,680
151,200
1 Q1 ,500
<HI 8,000
72,800
5e, 000
12e,550
12e,550
(700,000)
$2,08~,280
1Q85
1Q8e
1Q87
$7,238,500
1,808,800
583,500
~48,000
72,800
134,400
56,000
517,000
517,000
(3,000,000)
$8,376,000
$11,227,680
208,000
2,Q1Q,000
(~54,e80)
$13,900,000
$13,QOO,000
$8,550,000
$5, 424 ,eQO
100,000
1,407,000
(231,6QO)
$8,700,000
$8,700,000
~ SPRINGSTED
Page 6-2
Resolution 98-7 EXHIBIT A September 8, 1998
Golden Hills Redevelopment Tax Increment Financing District
. Amended Budget As Adopted: October 1998 :
Plus: Plus: Plus: Plus: Equals:
- Original Xenia Ave. Central Area
Budget as Extension
Restated (Outside
For State TIF Southwest Northwest Northeast Amended
TIF Forms District) Project Project Project Budget
Sources
Tax Increment $27,150,000 $7,821,090 $ 7,162,460 $ 0 $3,789,900 $45,923,450
Land Sale
Proceeds 5,700,000 75,000 3,375,000 0 1,273,500 10,423,500
Municipal State
Aid (MSA) 0 0 0 0 0 0
Interest Earnings 886,370 0 0 0 0 886,370
Total Sources $33.736.370 $7.896.090 $10.537.460 $ 0 $5.063.400 $57.233.320
Uses
Land/Building
Acquisition $17,921,280 $2,130,000 $ 6,488,600 $ 0 $3,094,000 $29.633,880
Site
Improvements
(Demolition) 1,276,910 1,150,000 700,000 0 350,000 3,476,910
Installation of
Public Utilities 2,691,270 3,000,000 500,000 0 100,000 6,291,270
Administration
. & Legal 2,239,190 0 868,860 0 404,400 3,512,450
Relocation 3,221,340 200,000 1,000,000 0 500,000 4,921,340
Bond Issuance
Costs 679,500 170,000 155,000 0 90,000 1,094,500
Capitalized
Interest 5,706,880 0 825,000 0 525,000 7,056,880
Cosntruction
of New Fire
Station 0 900.000 0 0 0 900,000
Contingency 0 346.090 0 0 0 346,090
Total Uses $33,736.370 -0- $5,063.400 $57.233.320
$7.896.090 $10.537.460 $1.iii.i9i
.
B SPRINGSTED
Page 6-3
.
.
.
Resolution 98-7
EXHIBIT A
September 8,1998
Section 7
ESTIMATED AMOUNT OF BONDED INDEBTEDNESS
Section A
It is estimated that it will be necessary to issue up to $27,150,000 of general obligation tax
increment bonds to pay the net public redevelopment costs. That total amount is expected to be
provided through the sale of three separate issues as follows:
October 1, 1985
October 1, 1986
October 1, 1987
$ 6,550,000
6,700,000
13,900,000
$27,150,000
The actual date for sale of the bonds, their terms and estimated interest rates will be adjusted
as necessary by the Authority to insure the timely availability of capital funds to defray the
public redevelopment costs.
A possible structuring of these three proposed issues, together with a projected total of debt
service payments, is attached as Exhibits lA-D.
Section B - Amended Budget
It is estimated that it will be necessary to issue up to $18,755,000 of additional general
obligation tax increment bonds to pay the net public redevelopment costs for projects reflected
in the amended budget. That total amount is expected to be provided through the sale of three
separate issues as follows:
December 1, 1998
April 1, 1999
April 1, 1999
$ 3780000 - ~J>>" .At~.
7:815:000 - .><~/; Ave.
7,160,000 - ..t>~e.
$18,755,000
The actual date for sale of the bonds, their terms and estimated interest rates will be adjusted
as necessary by the Authority to insure the timely availability of capital funds to defray the
public redevelopment costs.
A possible structuring of these three proposed issues, together with a projected total of debt
service payments, is attached as Exhibits .r-.JZZ'"
FJ SPRINGSTED
Page 7-1
.
.
.
Resolution 98-7
EXHIBIT A
September 83eJfiE\\ 8
SOURCES OF REVENUES
4'
ol~.~&rD
Sources of revenues to fund the total redevelopment cost ill include revenue from land sales,
estimated at $5,700,000; interest income during constructio , estimated at $886,370; and tax
increments to be derived from properties within the redevel pment district. The total tax
increment required for the payment of net public redevelo ent costs will be that amount
required for debt service on an estimated $~1,1 i99980 of general obligation tax increment
bonds, and the total amount actually required will depend upon the total amount of debt
incurred, the timing of the sales and the interest rate required to sell the bonds.
It is expected that tax increments required to pay the redevelopment cost will be available in the
following amounts by year:
1988
1989
1990
1991-2002
$ 714,856
2,581,024
3,279,880
3,733,714
It is estimated that the total cumulative tax increment required for debt service on bonds will be
$45,692,720.
A schedule of projected tax increment revenue is attached as Exhibit 11.
&~~:r ..zr /$ .;,n ~#?.s/S ~ .?A'c.~N/-c/
CISA/~IV r~.e ~,., -'J:#s x:P/i/j/e.~
//1 d~~ ~..#'/"'p'l-C~ /4d/~'/#~"
Q."tM'~P/ ,~d
~ SPRINGSTED
Page 8-1
.
.
.
Resolution 98-7
EXHIBIT A
September 8, 1998
Section 9
ORIGINAL ASSESSED VALUE
Pursuant to Minnesota Statute 273.76, Subd. I and Subd. 4, the original assessed value for the
Golden Hills Redevelopment Tax Increment Financing District is $6,522,778. The original value
includes the assessed value placed on the property by Hennepin County as of January 2, 1984
with adjustments required by Minnesota Statute 273.76, Subd. 4.
~ SPRINGSTED
Page 9-1
Resolution 98-7
EXHIBIT A
Septem~~tt~10
. ESTIMATED CAPTURED ASSESSED VALUE
.
.
Pursuant to MinnesoJa Statutes, Section 273.76, Subd. 1, the estimated captured value will
total $38,737,100, based on completion of initial improvements to private property planned
within the district. The estimated captured value will be available on the following schedule:
January 2, 1987
January 2, 1988
January 2, 1989
January 2, 1990
$ 7,416,600
26,778,000
34,028,600
38,737,100
A schedule of the composition and timing on this estimated captured value is attached as
Exhibit 111.
~ SPRINGSTED
Page 10-1
Resolution 98-7
EXHIBIT A
Septembe~lftW111
. DURATION OF THE DISTRICT
.
.
The duration of the !3olden Hills Redevelopment Tax Increment Financing District may be
twenty-five (25) years from the date of receipt of the first tax increment, which is expected to be
received in July, 1988. Therefore the district may remain in place until July, 2013. However, it is
expected that any public redevelopment costs required to finance the public redevelopment
may be fully recovered and paid prior to that time. Unless additional redevelopment costs are
incurred over and above the type and level outlined in this tax increment financing plan, it is the
intention of the Authority to terminate the district upon final payment of all initial redevelopment
costs, after which time the tax proceeds from the captured valuation will become available to all
taxing jurisdictions within the district.
~ SPRINGSTED
Page 11-1
Resolution 98-7
EXHIBIT A
SeptembES~tl~12
. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
.
.
The impact of foregojng potential taxes generated by private investment within the tax
increment district over the period of tax increment collection can be estimated by calculating the
increase in mill rates needed to generate an equivalent amount of taxes as those potentially
generated by the new development within the tax increment district. The estimated impact on
other taxing jurisdictions in which the tax increment district is located is presented in the
following table.
Impact on Tax Rate
Entitv
1984/85
Assessed Value
Captured
Valuation
Percent of
District to Entity
Hennepin County
City of Golden Valley
ISO 270 (Hopkins)
ISO 287 (Vo-Tech)
Metropolitan Council
Metropolitan Transit District
$8,044,844,074
251,532,811
603,213,947
5,064,024,055
15,160,850,205
13,944,295,586
$38,737,100
38,737,100
38,737,100
38,737,100
38,737,100
38,737,100
.004815
.154004
.064217
.007649
.002555
.002778
Captured Value Impact on Mill Rate
1984/85 Mill Rate
Entitv Mill Rate Potential Taxes(a) Increase(b)
Hennepin County 29.262 $1,133,525 .14
City of Golden Valley 16.886 654,1 14 2.60
ISO 270 (Hopkins) 42.567 1,648,922 2.73
ISO 287 (Vo-Tech) 1.490 57,718 .01
Other(c) 5.181 200,696 Varies With Unit
(a) Represents potential tax income if the current mill rate was applied to the maximum anticipated
captured value to be available for taxes collected in 199 1.
(b) Represents mill rate increase necessary on the current assessed value of each entity to recover
potential taxes frpm the maximum anticipated captured value in 1991.
(c) Includes special districts of Metropolitan Council, Metropolitan Transit, Metropolitan Mosquito Control,
County Park Museum, and Hennepin County Regional Railroad Authority.
~ SPRINGSTED
Page 12-1
Resolution 98-7
EXHIBIT A
SeptembeBtctlWJl13
. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT
.
.
In accordance with !\t1innesota Statutes, Section 273.74, Subd. 4, any reduction or enlargement
of the geographic area of the project or tax increment financing district, increase in amount of
bonded indebtedness to be incurred, including a determination to capitalize interest on the debt
if that determination was not a part of the original plan, or to increase or decrease the amount
of interest on the debt to be capitalized, increase in the portion of the captured assessed value
to be retained by the Authority, increase in total estimated tax increment expenditures or
designation of additional property to be acquired by the Authority shall be approved upon the
notice and after the discussion, public hearing and findings required for approval of the original
plan. The geographic area of a tax increment financing district may be reduced, but shall not be
enlarged after five years following the date of certification of the original assessed value by the
County Auditor. The tax increment financing district may therefore be expanded until 1990.
Fj SPRINGSTED
Page 13-1
Resolution 98-7
EXHIBIT A
SeptembeS@cfifii 14
. LIMITATION ON ADMINISTRATIVE EXPENSES
.
.
In accordance with lVIinnesota Statutes, Section 273.73, Subd. 13 and Minnesota Statutes,
Section 273.75, Subd. 3, administrative expenses means all expenditures of an authority other
than amounts paid for the purchase of land or amounts paid to contractors or others providing
materials and services, including architectural and engineering services, directly connected with
the physical development of the real property in the district, relocation benefits paid to, or
services provided for persons residing or businesses located in the district, or amounts used to
pay interest on, fund a reserve for, or sell at a discount, bonds issued pursuant to Section
273.77. Administrative expenses include amounts paid for services provided by bond counsel,
financial consultants, and planning or economic development consultants. No tax increment
shall be used to pay any administrative expenses for a project which exceeds ten percent of the
total tax increment expenditures authorized by the tax increment financing plan or the total tax
increment expenditures for the project, whichever is less.
~ SPRINGSTED
Page 14-1
Resolution 98-7
EXHIBIT A
SeptemberSedfiilt 15
. LIMITATION ON DURATION OF TAX INCREMENT FINANCING
DISTRICTS
-
Pursuant to Minnesota Statutes, Section 273.75, Subd. 1, "no tax increment shall be paid to an
authority three years from the date of certification by the County Auditor unless within the
three-year period (1) bonds have been issued pursuant to Section 273.77 or in aid of a project
pursuant to any other low, except revenue bonds issued pursuant to Chapter 474, prior to the
effective date of the Act; or (2) the Authority has acquired property within the district . . ." The
Authority must therefore issue bonds, or acquire property, or construct or cause public
improvements to be constructed by 1988 or the Office of the County Auditor may dissolve the
tax increment financing district.
.
.
~ SPRINGSTED
Page 15-1
Resolution 98-7
EXHIBIT A
SeptembSS@CfRflf 16
. LIMITATION ON QUALIFICATION OF PROPERTY IN TAX INCREMENT
DISTRICT NOT SUBJECT TO IMPROVEMENT
Pursuant to Minnesota Statutes, Section 273.75, Subd. 6, "if, after four years from the date of
certification of the original assessed value of the tax increment financing district. . ., no
demolition, rehabilitation or renovation of parcel or other site preparation including improvement
of a street adjacent to a property but not installation of utility service including sewer or water
systems, has been commenced on a parcel located within a tax increment financing district by
the Authority or by the owner of the parcel in accordance with the tax increment financing plan,
no additional tax increment may be taken from that parcel and the original assessed value of
that parcel shall be excluded from the original assessed value of the tax increment financing
district. If the Authority or the owner of the parcel subsequently commences demolition,
rehabilitation or renovation or other site preparation on that parcel, including improvement of a
street adjacent to that parcel, in accordance with the tax increment financing plan, the Authority
shall certify to the County Auditor in the annual disclosure report that the activity has
commenced. The County Auditor shall certify the assessed value thereof as most recently
certified by the Commissioner of Revenue and add it to the original assessed value of the tax
increment financing district."
.
.
~ SPRINGSTED
Page 16-1
Resolution 98-7
EXHIBIT A
SeptembeSi.ctmB 17
. LIMITATION ON THE USE OF TAX INCREMENT
.
.
All revenues derived from tax increment shall be used in accordance with the tax increment
financing plan. The revenues shall be used to finance or otherwise pay public redevelopment
costs pursuant to Minnesota Statutes, Chapter 462. These revenues shall not be used to
circumvent existing levy limit low. No revenues derived from tax increment shall be used for the
construction or renovation of a municipally owned building used primarily and regularly for
conducting the business of the municipality; this provision shall not prohibit the use of revenues
derived from tax increments for the construction or renovation of a parking structure, a
commons area used as a public park or a facility used for social, recreational or conference
purposes, and not primarily for conducting the business of the municipality.
~ SPRINGSTED
Page 17-1
Resolution 98-7
EXHIBIT A
Septembes@cf~ 18
. NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS
.
.
Pursuant to Minnesqta Statutes, Section 273.76, Subd. 4, the Authority has reviewed and
searched the properties to be included in the tax increment district and has identified those
properties for which building permits have been issued during the 18 months preceding
approval of the tax increment district financing plan, and has attached as Exhibit VII a list of
such properties for which permits have been issued. It has been assumed in computing the
estimate of original value that the County Auditor shall increase the original value by the
assessed value of the improvements for which the permits were issued.
During the search of the properties, it was determined that no building permits have been
issued during the three-month period preceding approval of the tax increment financing plan.
~ SPRINGSTED
Page 18-1
Resolution 98-7
EXHIBIT A
SeptembeS@cfiDW 19
. EXCESS TAX INCREMENTS
.
.
Pursuant to Minnes()ta Statutes, Section 273.75, Subd. 2, in any year in which the tax
increment exceeds the amount necessary to pay the costs authorized by the tax increment
plan, the Authority, in any order it shall determine, shall use the excess amount to:
I. Prepay the outstanding bonds;
2. Discharge the pledge of tax increment therefore;
3. Pay into an escrow account dedicated to the payment of such bonds;
4. Return the excess to the County Auditor for redistribution to the respective taxing
jurisdictions in proportion to their mill rate.
~ SPRINGSTED
Page 19-1
Resolution 98-7
EXHIBIT A
SeptemberSectiBft 20
. REQUIREMENT FOR AGREEMENTS WITH THE DEVELOPER
.
.
Pursuant to Minnesota Statutes, Section 273.75, Subd. 5, no more than 25 percent by acreage
of the property to be acquired by the Authority in the district shall be owned by the Authority as
a result of acquisition with the proceeds of bonds issued pursuant to section 273.77 without the
Authority having prior to acquisition of in excess of 25 percent of the acreage, concluded an
agreement for the redevelopment of the property acquired and which provides recourse for the
Authority should the redevelopment not be completed.
The Authority will have such an agreement for the redevelopment of the property.
~ SPRINGSTED
Page 20-1
Resolution 98-7
EXHIBIT A
SeptembershcWBi 21
. ASSESSMENT AGREEMENTS
.
.
Pursuant to Minnes9ta Statutes, Section 273.76, Subd. 8, the Authority may, upon entering into
a redevelopment agreement pursuant to Minnesota Statutes, Section 273.75, Subd. 5, enter
into an agreement in recordable form with the redeveloper of property within the tax increment
financing district which establishes a minimum market value of the land and completed
improvements for the duration of the tax increment district. The assessment agreement shall be
presented to the City Assessor who shall review the plans and specifications for the
improvements to be constructed, review the market value previously assigned to the land upon
which the improvements are to be constructed and so long as the minimum market value
contained in the assessment agreement appears in the judgment of the Assessor, to be a
reasonable estimate, the Assessor may certify the minimum market value agreement.
The Authority may negotiate such assessment agreements on portions of the development
which are expected to take place within the tax increment financing district.
~ SPRINGSTED
Page 21-1
Resolution 98-7
EXHIBIT A
Septembes@cfMl22
. ADMINISTRATION OF THE TAX INCREMENT DISTRICT AND
MAINTENANCE OF THE TAX INCREMENT ACCOU~T
Administration of the tax increment financing economic redevelopment district will be by the
Authority, through an agreement with the City Manager's Office.
The tax increment received as a result of increases in the assessed value of the tax increment
district will be maintained in a special account separate from all other accounts and expended
only upon sanctioned activities identified in the finance plan.
.
.
~ SPRINGSTED
Page 22-1
Resolution 98-7
EXHIBIT A
SeptembeBtcti\Wl 23
. ANNUAL DISCLOSURE REQUIREMENTS
Pursuant to Minnesota Statutes, Section 273.74, Subd. 5, an authority must file an annual
disclosure report for all tax increment financing districts. The report shall be filed with the school
board, county board and the Minnesota Department of Energy and Economic Development.
The report shall include the following information:
1. The amount and source of revenue in the account;
2. The amount and purpose of expenditures from the account;
3. The amount of any pledge of revenues, including principal and interest on any outstanding
bonded indebtedness;
4. The original assessed value of the district;
5. The captured assessed value retained by the Authority;
6. The captured assessed.value shared with other taxing districts;
7. The tax increment received.
. The Authority will maintain the necessary records and submit the required reports.
.
~ SPRINGSTED
Page 23-1
Resolution 98-7
..z
EXHIBIT A
September 8,1998
Projected Bond Cash Flow Report
. City of Golden Valley, Minnesota
Tax Increment Financing (Redevelopment District) District No. 1503
Golden Hills TIF Project ~..
Northeast Scenario - ~,n., ~,e~ '/ (/IS
Annual Annual
Period Taxable Capitalized Net Annual Cumulative
Ending Principal Rate Interest P&I Interest Revenue Balance Balance
(1 ) (2) (3) (4) (5) (6) (7) (8) (9)
02/01/99 0 5.70% 39,625 39,625 39,700 0 75 75
02/01/00 0 5.80% 237,748 237,748 237,700 0 (48) 27
02/01/01 0 5.90% 237,748 237,748 237,800 0 52 79
02/01102 190,000 5.95% 237,748 427,748 0 561,847 134,099 134,178
02/01/03 200,000 6.00% 226,443 426,443 0 561,847 135,404 269,582
02/01/04 210,000 6.10% 214,443 424,443 0 561,847 137,404 406,986
02/01/05 220,000 6.15% 201,633 421,633 0 561,847 140,214 547,200
02/01/06 240,000 6.20% 188,103 428,103 0 561,847 133,744 680,944
02/01/07 460,000 6.25% 173,223 633,223 0 561,847 (71,376) 609,568
02/01/08 515,000 6.30% 144,473 659,473 0 561,847 (97,626) 511,942
02/01/09 545,000 6.35% 112,028 657,028 0 561,847 (95,181 ) 416,761
02/01/10 580,000 6.40% 77,420 657,420 0 561,847 (95,573) 321,188
02/01/11 620,000 6.50% 40,300 660,300 0 561,847 (98,453) 222,735
02/01/12 0 6.55% 0 0 0 0 0 222,735
02/01/13 0 6.60% 0 0 0 0 0 222,735
. (]3,780,O~ $2,130,935 $5,910,935 $515,200 $5,618,470 $222,735
Bond Issue Summary Purpose I Amount I %
Dated Date 12/01/98 Eligible Project Costs $3,177,287 84.06%
Bond Years 33,635.00 Capitalized Interest 515,200 13.63%
Average Maturity 8.90 Underwriters Discount 56,700 1.50%
Costs of Issuance 30,813 0.82%
Annual Interest $2,130,935 Other 0 0.00%
Discount 1.50% $56,700 Other 0 0.00%
Net Interest Cost $2,187,635
Net Interest Rate 6.504% Total Bond Issue $3,780,000 100.00%
.
Prepared by: Springsted Incorporated (printed on 911/98 at 2:37 PM)
TiCne
Resolution 98-7
I
EXHIBIT A
Projected Bond Cash Flow Report
syptember 8, ,ggg2Z"
.
f Golden Valley
Xenia Avenue Extension
G.O. Bonds, Series 1999
Annual Annual
Period Tax-Exempt Capitalized Net Annual Cumulative
Ending Principal Rate Interest P&I Interest Revenue Balance Balance
(1) (2) (3) (4) (5) (6) (7) (8) (9)
02101/00 550,000 3.80% 274,788 824,788 0 0 (824,788) (824,788)
02101/01 535,000 3.90% 308,845 843,845 0 0 (843,845) (1,668,633)
02101/02 555,000 4.00% 287,980 842,980 0 0 (842,980) (2,511,613)
02101/03 580,000 4.05% 265,780 845,780 0 0 (845,780) (3,357,393)
02101/04 605,000 4.10% 242,290 847,290 0 0 (847,290) (4,204,683)
02101/05 625,000 4.20% 217.485 842,485 0 0 (842.485) (5,047,168)
02101/06 655,000 4.25% 191,235 846,235 0 0 (846,235) (5,893,403)
02101/07 680,000 4.30% 163,398 843,398 0 0 (843,398) (6,736,801 )
02101/08 710,000 4.35% 134,158 844,158 0 0 (844,158) (7,580,959)
02101/09 740,000 4.40% 103,273 843,273 0 0 (843,273) (8,424,232)
02101/10 775,000 4.45% 70,713 845,713 0 0 (845,713) (9,269,945)
02101/11 805,000 4.50% 36,225 841,225 0 0 (841,225) (10,111,170)
02101/12 0 4.60% 0 0 0 0 0 (10,111,170)
02101/13 0 4.65% 0 0 0 0 0 (10,111,170)
02101/14 0 4.70% 0 0 0 0 0 (10,111,170)
07,815,OO~ $2,296,170 $10,111,170 $0 $0 ($10,111,170)
Bond Issue Summary Purpose I Amount I %
. Dated Date 04/01/99 Eligible Project Costs $7,652,532 97.92%
First Interest Date 02101/00 Capitalized Interest 0 0.00%
Bond Years 53,077.50 Underwriters Discount 117 ,225 1.50%
Average Maturity 6.79 Costs of Issuance (Adm.) 45,243 0.58%
Other 0 0.00%
Annual Interest $2,296,170 Other 0 0.00%
Discount 1.50% $117,225
Net Interest Cost $2,413,395 Total Bond Issue $7,815,000 100.00%
Net Interest Rate 4.547%
.
Prepared by: Springsted Incorporated (printed on 9/1/98 at 2:40 PM)
Xenia
Resolution 98-7
#~
EXHIBIT A
September 8, 1998
Projected Bond Cash Flow Report
I
.
City of Golden Valley, Minnesota
Tax Increment Financing (Redevelopment District) District No. 1503
Golden Hills TIF Project
Southwest Scenario .. ~~
Annual Annual
Period Taxable Capitalized Net Annual Cumulative
Ending Principal Rate Interest P&I Interest Revenue Balance Balance
(1 ) (2) (3) (4) (5) (6) (7) (8) (9)
02/01/99 0 5.70% 0 0 0 0 0 0
02/01/00 0 5.80% 374,515 374,515 374,600 0 85 85
02/01/01 0 5.90% 449,418 449,418 449,400 0 (18) 67
02101/02 60,000 5.95% 449,418 509,418 0 507,666 (1,752) (1,685)
02101/03 570,000 6.00% 445,848 1,015,848 0 1,015,332 (516) (2,201 )
02/01/04 600,000 6.10% 411,648 1,011,648 0 1,015,332 3,684 1 ,483
02/01/05 640,000 6.15% 375,048 1,015,048 0 1,015,332 284 1,767
02/01/06 680,000 6.20% 335,688 1,015,688 0 1,015,332 (356) 1,411
02/01/07 815,000 6.25% 293,528 1,108,528 0 1,015,332 (93,196) (91,785)
02/01/08 865,000 6.30% 242,590 1,107,590 0 1,015,332 (92,258) (184,043)
02/01/09 920,000 6.35% 188,095 1,108,095 0 1,015,332 (92,763) (276,806)
02/01/10 975,000 6.40% 129,675 1,104,675 0 1,015,332 (89,343) (366,149)
02101/11 1,035,000 6.50% 67,275 1,102,275 0 1,015,332 (86,943) (453,092)
02/01/12 0 6.55% 0 0 0 0 0 (453,092)
02/01/13 0 6.60% 0 0 0 0 0 (453,092)
. ~7,160,OOO--> $3,762,746 $10,922,746 $824,000 $9,645,654 ($453,092)
Bond Issue Summary Purpose I Amount 1 %
Dated Date 04/01/99 Eligible Project Costs $6,184,414 86.37%
Bond Years 59,516.67 Capitalized Interest 824,000 11.51%
Average Maturity 8.31 Underwriters Discount 107,400 1.50%
Costs of Issuance 44,186 0.62%
Annual Interest $3,762,746 Other 0 0.00%
Discount 1.50% $107,400 Other 0 0.00%
Net Interest Cost $3,870,146
Net Interest Rate 6.503% Total Bond Issue $7,160,000 100.00%
.
Prepared by: Springsted Incorporated (printed on 9/1/98 at 2:37 PM)
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.! Annual
5tcollect Period
en Year Ending
(1) (2)
1997 2/1/98
1998 2/1/99
1999 2/1/00
2000 2/1/01
2001 211/02
2002 2/1/03
2003 2/1/04
2004 211/05
<( 2005 211/06
I- 2006 2/1/07
- 2007 2/1/08
!:!:! 2008 2/1/09
J: 2009 2/1110
>< 2010 2/1111
W
.or,
City of Golden Valley, Minnesota
Projected Cash Flow Schedule - Existing Increment & Bonds
Existing Increment & Bonds + Central Area Project Increment and Bonds
Golden Hills Tax Increment Financing DIstrict (County TIF #1503)
Revenues
Expenses
Central
Existing Area MEPC Interest MnDOT 1991 TIF 1997 TIF 1997 1997 1998 1999 1999 Annual Ending
Tax Tax Tax Eamings @ Bldg& Refunding Refunding Tax-Exempt Taxable TIF Bonds TIF Bonds Xenia Ave. Surplus Cash
Increment Increment Increment 4.50% HRA Adm. Bonds Bonds Bonds Bonds NE SW Bonds (Deficit) Balance (a)
(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
2,144,512
2,448,013 0 0 96,503 560,000 707,080 0 174,623 564,342 39,625 0 0 498,846 2,643,358
2,154,251 0 0 118,951 0 711,280 0 154,870 487,865 237,748 374,515 824,788 (517,863) 2,125,495
2,154,251 0 87,000 95,647 0 0 676,919 152,845 484,865 237,748 449,418 843,845 (508,741 ) 1,616,753
2,154,251 1,069,513 87,000 72,754 0 0 679,577 280,795 931,865 427,748 509,418 842,980 (288,865) 1,327,889
2,154,251 1,577,179 87,000 59,755 0 0 680,715 278,145 936,365 426,443 1,015,848 845,780 (305,111) 1,022,778
2,154,251 1,577,179 87,000 46,025 0 0 680,350 280,190 933,195 424,443 1,011,648 847,290 (312,661) 710,118
2,154,251 1,577,179 87,000 31,955 0 0 683,277 281,659 937,883 421 ,633 1,015,048 842,485 (331,599) 378,518
2,154,251 1,577,179 87,000 17,033 0 0 664,528 282,536 934,767 428,103 1,015,688 846,235 (336,393) 42,125
2,154,251 1,577,179 87,000 1,896 0 0 0 277,861 934,128 633,223 1,108,528 843,398 23,188 65,313
2,154,251 1,577,179 87,000 2,939 0 0 0 282,851 935,607 659,473 1,107,590 844,158 (8,309) 57,004
2,154,251 1,577,179 87,000 2,565 0 0 0 281,924 933,845 657,028 1,108,095 843,273 (3,169) 53,834
2,154,251 1,577,179 87,000 2,423 0 0 0 280,287 938,410 657,420 1,104,675 845,713 (5,652) 48,182
2,154,251 1,577,179 87,000 2,168 0 0 0 277,919 938,960 660,300 1,102,275 841 ,225 (80) ~102
28,299,030 15,264,124 957,000 550,615 560,000 1,418,360 4,065,366 3,286,505 10,892,097 5,910,935 10,922,746 10,111,170 (2,096,410)
(a) Cash balance on 211/98 equals 1997 year-end balance provided by City ($2,700,000) less 2/1/98 debt service on 1991 TIF Refunding Bonds ($555,488).
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Prepared .ingsted Incorporated (9/1/98)
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