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HRA - 14-06 - 11-12 - approving modification no 2 to tax increment financing plan for tax increement financing (renewal and renovation) district no 1 Resolution 14-6 November 12, 2014 Commissioner Harris introduced the following resolution and moved its adoption: RESOLUTION APPROVING MODIFICATION NO. 2 TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (RENEWAL AND RENOVATION) DISTRICT NO. 1 BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (the "Authority"), as follows: WHEREAS, the Authority has previously adopted a redevelopment plan (the "Project Plan") and redevelopment project under Minnesota Statutes, Sections 469.001 to 469.047, designated as the Highway 55 West Renewal and Renovation Project Area (the "Redevelopment Project") and a tax increment financing plan of the Authority under Minnesota Statutes, Sections 469.174 to 469.1799, designated as the Tax Increment Financing Plan for Tax Increment Financing (Renewal and Renovation) District No. 1, as amended by an administrative modification adopted January 15, 2013 (as so modified, the "Financing Plan"). The Financing Plan established Tax Increment Financing (Renewal and Renovation) District No. 1 (the "TIF District"). WHEREAS, it has been proposed that the Authority approve Modification No. 2 to the Financing Plan (the "Amended Financing Plan") to account for a delay in scope and timing of the proposed private development and to increase the budget of the TIF District, all as reflected in the Amended Financing Plan and presented for the Authority's consideration; WHEREAS, the Authority has investigated the facts relating to the Amended Financing Plan and has caused the Amended Financing Plan to be prepared; WHEREAS, the City Council of the City of Golden Valley, Minnesota (the "City Council"), has scheduled a public hearing on the Amended Financing Plan to be held on December 2, 2014, in accordance with Minnesota Statutes, Chapter 469 (the "Public Hearing"); NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. Adoption. The Amended Financing Plan is hereby adopted based on the findings herein, subject to approval by the City Council following the Public Hearing. Section 2. Findings. The Authority hereby makes the following findings: (a) The District consists of a contiguous geographic area within a "projecY' as defined in Minnesota Statutes, Section 469.174, subdivision 8, and is a proper "tax increment financing district" within the meaning of Section 469.174, subdivision 9. Based on the information in Amended Financing Plan and representations of the developer, the District contains the following conditions: Parcels consisting of 70% of the area of the District are occupied by buildings, streets, utilities, paved ar gravel parking lots, or other similar structures; 20% of the buildings are structurally Resolution 14-6 - Continued November 12, 2014 substandard; and 30% of the other buildings require substantial renovation or clearance to remove existing conditions, such as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the Gity. The foregoing conditions are reasonably distributed throughout the geographic area of the District. Therefore, the District qualifies as a "renewal and renovation district" within the meaning of Minnesota Statutes, Section 469.174, subdivision 10a. (b) The private redevelopment proposed to be encouraged in the Redevelopment Project pursuant to the proposed Project Plan would not, in the opinion of the Authority, reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. Furthermore, in the opinion of the Authority, the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Amended Financing Plan. The studies and analyses supporting these findings are identified in the Amended Financing Plan. (c) The Amended Financing Plan conforms to the general plan for the development or redevelopment of the City as a whole. The redevelopment activities are compatible with the City's zoning ordinances and other related regulations and encourage efficient use of existing infrastructure as set forth in the City's Land Use Plan. (d) The Amended Financing Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. The redevelopment activities contemplated in the Project Plan would help to retard blight in the Redevelopment Project and provide an increase in employment and housing opportunities in the City and enhance the tax base of the City and overlapping taxing jurisdictions. Section 3. Transmittal. The Authority does hereby transmit the Amended Financing Plan to the City Council for approval after the same have been considered by the City Council subsequent to the Public Hearing. Section 4. Filinq. Following approval by the City Council, the Secretary is hereby authorized and directed to file the Amended Financing Plan with the Commissioner of Revenue and the Office of the State Auditor as required by Minnesota Statutes, Section 469.175, subdivision 4a. Resolution 14-6 - Continued November 12, 2014 ���',- � ' ,��� Steven T Schm dgall, Chair ATTEST: ��� Thomas D. Burt, Executive Director The motion for the adoption of the foregoing resolution was seconded by Gommissioner Fonnest and upon a vote being taken thereon, the following voted in favor thereof: Fonnest, Harris, Schmidgall and Snope; and the following voted against the same: Clausen, whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Executive Director.