99-16 HRA Resolution
Resolution 99-16
December 14, 1999
Commissioner Anderson introduced the following and moved its adoption:
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RESOLUTION APPROVING AN AMENDMENT TO THE
TAX INCREMENT FINANCING PLAN FOR THE GOLDEN HILLS
REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT
WHEREAS, the Housing and Redevelopment Authority in and for the City
of Golden Valley (hereinafter "HRA") has prepared an update to the existing tax
increment financing plan (herein, "the TIF Plan") for the Golden Hills Tax
Increment Financing District (the "District") entitled "1999 Administrative
Amendment to the Tax Increment Financing Plan for the Golden Hills TIF
District" (herein, "1999 Amendment"), which updates certain activities to be
undertaken within the district and the budget for the District; and,
WHEREAS, pursuant to Minnesota Statutes, Section 469.175, subdivision
4, 1999 Amendment may be approved and adopted by resolution of the Authority
since 1999 Amendment does not change the boundaries of the District or the
Project Area, does not increase the permitted amount of bonded indebtedness,
does not increase the aggregate amount of tax increment expenditures, does not
increase the portion of the tax increment to be retained by the Authority and
does not designate additional property to be acquired by the Authority.
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NOW, THEREFORE, BE IT RESOLVED, that Administrative 1999
Amendment to the Golden Hills Tax Increment financing Plan attached hereto is
hereby approved and adopted, and shall be forwarded to the City Council for
review and action.
William S. Joy es, . ctor
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Motion for the\adabtion of the foregoing resolution was seconded by
Commissioner~ken; 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.
Gloria Johnso I Chair
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City of Golden Valley, Minnesota
Housing and Redevelopment Authority of the City of Golden Valley, Minnesota
1999 Administrative Amendment to the
Tax Increment Financing Plan for the Golden Hills TIF District
Amendment Dated December 1, 1999
Approved by HRA on December 14, 1999
Approved by City Council on December 21,1999
The following text is added to the indicated sections of the Golden Hills TIF plan as a means of
clarifying and updating key information within the plan. Such modification does not change the
boundaries of the TIF district or project area, increase the amount of allowable bonded
indebtedness, increase the total budget or change any other aspect of the plan which would
statutorily require the City and/or HRA to follow the procedure set forth in M.S. 469.174-
469.179 for adoption of a new TIF plan.
Section 3 - Development Program
6. Projects Reflected in Amended Budget
Added Text
In connection with the Xenia A venue Extension Project, as identified in the
Redevelopment Plan, the City has acquired certain property adjacent to
Meadowbrook School. The School District and the HRA have negotiated and
executed a letter of intent relating to the construction of a multi-purpose
gymnasium and recreational facility on the property to be used by the City and the
School District. The facility will further the redevelopment of this portion of the
Redevelopment Area and enable to the City to provide an enhanced level of
community recreation services to the area. The construction of the facility will be
funded by a contribution of available tax increments fromthe Golden Hills Tax
Increment Financing District in an amount not to exceed $1,000,000, and by the
issuance of lease-purchase revenue bonds by the HRA, which will lease the
facility to the School District for rentals sufficient to retire the revenue bonds. A
copy of the letter of intent is attached to this Administrative Amendment as
Exhibit I.
Section 6 - Estimate of Costs
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Page 2
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Added Text
To reflect the costs ofthe proposed gymnasium and recreational facility to be developed
by the City and HRA in conjunction with the School District, and to update the costs of
the various projects described in the Redevelopment Plan through November 1, 1999
attached hereto as Exhibit II is an amended budget for the District.
Section 7 - Estimated Amount of Bonded Indebtedness
Added Text
A summary of actual bonded indebtedness for the TIF District is listed below. The
maximum amount of bonded indebtedness that can incurred to pay for the public costs
associated with the TIF District remains at $46,665,000 (as per the current TIF plan).
Actual
New Issuance
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Par Amount - 1985 Bonds
Principal Paid - 1985 Bonds
Principal Refunded - 1985 Bonds
Additional Issuance - 1991 Bonds
Par Amount - 1991 Bonds
Principal To Pay - 1991 Bonds
Principal Refunded - 1991 Bonds
Additional Issuance - 1997 Bonds
Par Amount - 1997 Bonds
Total Actual New Issuance
$6,700,000
1,705,000
$4,995,000
115,000
$5, 110,000
1,675,000
$3,435,000
55,000
$3,490,000
$6,700,000
115,000
55,000
$6,870,000
Par Amount - 1997B Bonds (Taxable)
Par Amount - 1997C Bonds
Par Amount - I999A Bonds (Taxable)
Par Amount - 1999C Bonds
Par Amount - 19990 Bonds (Taxable)
$6,875,000
2,350,000
4,540,000
6,510,000
11,150,000
Total Actual Issuance
$
38,295,000
Section 8 - Sources of Revenue
Added Text
An updated Projected Cash Flow Schedule for the TIF District is shown in Exhibit III of
this amendment. Existing cash balances from the district along with future tax increment
collections should be adequate to pay scheduled project costs and debt service over the
life of the TIF district, including the proposed contribution of up to $1,000,000 from the
existing cash balance to the proposed City-School District recreational facility.
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November 29, 1999
EXHIBIT I
Dr. Michael Kremer, Superintendent
Independent School District No. 270 (Hopkins)
1001 Highway 7
Hopkins, MN. 55305
RE: Letter of Intent regarding gymnasium / multi-use facility construction at
Meadowbrook School in Golden Hills Redevelopment Area
Dear Dr. Kremer:
As part of the City/HRA Xenia Ave. Project, the City of Golden Valley
acquired a parcel of vacant land directly across Old Turner's Crossroad from
Meadowbrook School. The City is in the process of vacating that portion of
Turner's Crossroad lying between Meadowbrook School and the City's
additional parcel of land.
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The City, at the request of the HRA and the School District, will develop a
multi-purpose gymnasium-type building on the additional parcel for use by
the School District, and the community at large through the City's Recreation
Department. The building will be based upon plans and specifications to be
prepared by the School District, and approved by the City and the HRA. The
current estimated cost of the facility is approximately $4,000,000.
The HRA will make a cash contribution, of tax increment monies from the
Golden Hills Tax Increment District, towards the construction cost of the
building at the time construction is authorized. The formula to determine the
HRA's contribution will be based on the percentage of the facility used by the
HRNCity or community at large, and the percentageoftime the facility is
used by the HRA/City or community at large.
The School District will enter into a lease with the HRA/City for its use of the
facility, and the HRA/City will issue lease revenue bonds to finance the
balance of the construction costs. At specified points in time during the
period of the School District's lease with the City, the School. District shall
have the opportunity to purchase the land and all or a share of the building
from the City. The purchase will be subject to the continuing right to partial
use of the facility by the HRA/City, for community recreation programs.
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Letter of Intent (Page 2)
The parties currently intend to begin construction of the project in the spring
of 2000.
Very truly yours,
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
GOLDEN VALLEY
By
Gloria Johnson
Its Chair
By
William S. Joynes
Its Director
CITY OF GOLDEN VALLEY
By
Mary E. Anderson
Mayor
By
William S. Joynes
City Manager
INDEPENDENT SCHOOL DISTRICT 270
(HOPKINS)
By
Dr. Michael Kremer
Its Superintendent
By
Ron Davis
Its Chair
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EXHIBIT II
I Amended Budget ]
Xenia Ave. Central Area Less:
Extension Restated
(Outside TIF Southwest Northwest Northeast Other Remaining Original Remaining Amended
District) Project Project PrniAr.t Proiects Budaet Rllrfn..t Runnet Budaet
Sm.m:.u
Bond ProceedslTax Increment 6,510,000 11,150,000 0 4,540,000 1,000,000 (2,609,864) 25,575,000 499,864 46,665,000
land Sale Proceeds 0 2,875,000 0 1,415,000 0 0 5,700,000 0 9,990,000
Municipal State Aid (MSA) 0 0 0 0 0 0 0 0 0
Interest Earnings 0 0 0 0 0 0 1,461,370 0 1,461,370
6,510,000 14,025,000 0 5,955,000 1,000,000 (2,609,864) 32,736,370 499,864 58,116,370
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land/Building Acquisition 2,070,000 8,200,000 0 3,600,000 0 0 19,989,116 0 33,859,116
Site Improvements (Demolition) 2,835,000 400,000 0 650,000 0 0 1,635,753 0 5,520,753
Installation of Public Utilities 420,000 1,500,000 0 100,000 0 0 2,750,854 0 4,770,854
Administration & Legal 303,950 1,260,000 0 434,400 0 (156,446) 2,239,190 50,000 4,131,094
Relocation 204,000 1,500,000 0 500,000 0 (200,000) 3,053,989 100,000 5,157,989
Engineering/Environmental 550,000 1,000,000 0 0 0 0 0 0 1,550,000
Bond Issuance Costs 66,260 165,000 0 79,600 0 (100,000) 442,615 50,000 703,475
Capitalized Interest 0 0 0 591,000 0 (2,153,418) 2,624,853 299,864 1,362,299
Pedestrian Crossing 0 0 0 0 0 0 0 0 0
Joint City/School Dist. Rec. Facility 0 0 0 0 1,000,000 0 0 0 1,000,000
Contingency 60,790 0 0 O' 0 0 0 0 60,790
Total Uses 6,510,000 14,025,000 0 5,955,000 1,000,000 (2,609,864) 32,736,370 _ 499,864 58,116,370
Budget6d.xls
Prepared by: Springsted Incorporated (12/8/99)
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EXHIBIT III
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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
United Xenia Ave.!
Central Central Joint Properties Duke Tume(s
Annual Existing Area Area MEPC Interest City-SID 1991 TIF 1997 TIF 1997 1997 1998 1999 1999 Annual Ending
Collect Period Tax United Prop Duke Tax Eamings @ Rae. Refunding Refunding Tax-Exempt Taxable TIF Bonds TIF Bonds TIF Bonds Surplus Cash
Year Ending Increment TIF TIF Increment 4.50% Facility Bonds Bonds Bonds Bonds NE SW Bonds (Deficit) Balance (a)
(1) (2) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
1998 2/1/99 2,732,085
1999 2/1/00 2,680,719 0 0 0 122,944 0 711,280 0 154,870 487,865 307,317 0 0 1,142,331 3,874,416
200Cl 2/1/01 2,680,719 0 0 87,000 174,349 1,000,000 0 676,919 152,845 484,865 283,678 980,059 403,428 (1,039,726) 2,834,689
2001 2/1/02 2,680,719 781,653 508,534 87,000 127,561 0 0 679,577 280,795 931,865 623,678 984,048 522,743 162,761 2,997,450
2002 2/1/03 2,680,719 781,653 1,017,068 87,000 134,885 0 0 680,715 278,145 936,365 628,448 1,685,848 888,943 (397,139) 2,600,312
2003 2/1/04 2,680,719 781,653 1,017,068 87,000 117,014 0 0 680,350 280,190 933,195 626,548 1,689,085 892,780 (418,694) 2,181,618
2004 2/1105 2,680,719 781,653 1,017,068 87,000 98,173 0 0 683,277 281,659 937,883 623,063 1,682,445 889,648 (433,362) 1,748,255
2005 2/1/06 2,680,719 781,653 1,017,068 87,000 78,671 0 0 664,528 282,536 934,767 628,155 1,690,165 889,723 (444,763) 1,303,493
2006 2/1/07 2,680,719 781,653 1,017,068 87,000 58,657 0 0 0 277,861 934,128 626,185 1,692,325 892,713 201,885 1,505,378
2007 2/1/08 2,680,719 781,653 1,017,068 87,000 67,742 0 0 0 282,851 935,607 627,435 1,688,325 893,310 206,654 1,712,032
2008 2/1/09 2,680,719 781,653 1,017,068 87,000 77,041 0 0 0 281,924 933,845 626,565 1,688,085 891,445 221,617 1,933,649
2009 2/1/10 2,680,719 781,653 1,017,068 87,000 87,014 0 0 0 280,287 938,410 628,545 1,690,815 892,048 223,349 2,156,998
2010 2/1/11 2,680,719 781,653 1,017,068 87,000 97,065 0 0 0 277,919 938,960 623,025 1,689,975 889,785 243,841 2,400,839
32,168,627 7,816,530 9,662,146 957,000 1,241,117 1,000,000 711,280 4,065,366 3,111,882 10,327,755 6,852,642 17,161,175 8,946,566 (331,246)
(a) Cash balance on 2/1/99 equals 1998 year-end balance provided by City less 2/1/99 debt service.
.w~ by: Springsted Incorporated (12/8/99)
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