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09-01-15 HRA Special Agenda Packet AGENDA Special Meeting of the Housing and Redevelopment Authority Golden Valley City Hall 7800 Golden Valley Road Council Chamber September 1, 2015 5:30 pm Paqes 1. Roll Call 2. Winnetka and Medicine Lake Road Project Area: 2-38 A. Approval of Tax Increment Financing (Redevelopment) District, Liberty Crossing, and Tax Increment Financing Plan 15-04 3. Highway 55 West Redevelopment Area: 39-72 A. Approval of Modification to Redevelopment Plan, and Tax Increment Financing District (Housing), Cornerstone Creek, and Tax Increment Financing Plan 15-05 4. Adjournment eity of �;P� �ZC�+�YZ ��1 � �I� +� RANC� U �� t�,. �,'� Housing and Redevelopment Authority 763 593 8002/763 593 8109(fax) Executive Summary For Action Golden Valley Special Housing and Redevelopment Authority Meeting September 1, 2015 Agenda Item 2. A. Approval of Tax Increment Financing District, Liberty Crossing, and Tax Increment Financing Plan Prepared By Marc Nevinski, Physical Development Director Summary The HRA is asked to consider approval of Tax Increment Financing (Redevelopment) District, Liberty Crossing, within the Winnetka & Medicine Lake Road Redevelopment Project Area and the tax increment financing plan. The district and project area are located at the southeast quadrant of Winnetka Avenue and Medicine Lake Road. Intuitive Investment proposes to redevelop industrial and commercial properties into multi-family housing in the form of an apartment building and townhomes. Tax increment will help to fund infrastructure improvements in the area to reduce flooding on Medicine Lake Road and in the DeCola Ponds sub-watershed district. LHB, Inc. has inspected the properties proposed for inclusion in the district, documented their condition, and found them to meet the "structurally substandard" and coverage ratio tests required for the establishment of a redevelopment TIF district, which can run for up to 25 years. HRA staff and the developer are currently discussing the design and configuration of the infrastructure, and the final plan and development agreement will determine how the increment is allocated. The HRA will review and consider the development agreement at a future date. On July 14, 2015 staff informed the HRA of the project and the intent to begin the establishment of a TIF district. The HRA also adopted at the same meeting Resolution 15-3 adopting Redevelopment Plan for the Winnetka and Medicine Lake Road Redevelopment Project Area. On July 31, 2015 the County and School district received the required impact letters. Public hearing notices were published in the SunPost on August 20, 2015. On August 24, 2015 the Planning Commission adopted Resolution 15-01 finding that the development was in conformance with the City's Comprehensive plan. The project received final PUD approval from the City Council on July 21, 2015. Attachments • Resolution Approving Tax Increment Financing District (Redevelopment), Liberty Crossing and the Tax Increment Financing Plan Therefor (2 pagesj • Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District Within , Winnetka & Medicine Lake Road Redevelopment Project Area (Liberty Crossing Project) draft dated July 30, 2015 (22 pages) • Redevelopment Plan for Winnetka & Medicine Lake Road Redevelopment Project (11 pagesj Recommended Action Motion to adopt Resolution Approving Tax Increment Financing District (Redevelopment), Liberty Crossing and the Tax Increment Financing Plan Therefor. Resolution 15-4 September 1, 2015 Commissioner introduced the following resolution and moved its adoption: RESOLUTION APPROVING TAX INCREMENT FINANCING DISTRICT (REDEVELOPMENT), LIBERTY CROSSING AND THE TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS, the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (the "Authority"), as follows: WHEREAS, it has been proposed that the Authority approve the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District (Redevelopment), Liberty Crossing, (the "DistricY'), within the Winnetka & Medicine Lake Road Redevelopment Project Area; all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended (the "Act")� , WHEREAS, the Authority has investigated the facts relating to the TIF Plan and has caused the TIF Plan to be prepared; and WHEREAS, the City Council of the City (the "Council"), has scheduled a public hearing on the TIF Plan to be held on September 1, 2015, in accordance with Minnesota Statutes, Chapter 469 (the "Public Hearing"). WHEREAS, all persons present were given the opportunity to be heard; NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. Adoption. The TIF Plan is hereby adopted based on the findings herein, subject to approval by the Council following the Public Hearing. Section 2. Findings. The Authority hereby makes the following findings: (a) the TIF District is a "redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10(a)(1); and (b) (i) the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future, (ii) 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 TIF Plan, (iii) the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole, and (iv) the TIF 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. Resolution 15-4 - Continued September 1, 2015 Section 3. Transmittal. The Authority does hereby transmit the TIF Plan to the Council for approval after the same have been considered by the Council subsequent to the Public Hearing. Section 4. Filing. Following approval by the Council, the City Clerk is hereby authorized and directed to file the TIF Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Steven T Schmidgall, Chair ATTEST: Marc Nevinski, Assistant Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Assistant Director. City of Golden Valley, Minnesota Golden Valley Housing and Redevelopment Authority Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District Within Winnetka & Medicine Lake Road Redevelopment Project Area (Liberty Crossing Project) Draft: July 30, 2015 Public Hearing: September 1, 2015 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street,Suite 300 St. Paul, MN 55101-2887 (651)223-3000 WWW.SPRINGSTED.COM TABLE OF CONTENTS Section Pa e s A. Definitions...................................................................................................................................................................................1 B. Statutory Authorization.............................................................................................................................................1 C. Statement of Need and Public Purpose...................................................................................................................1 D. Statement of Objectives............................................................................................................................................1 E. Designation of Tax Increment Financing District as a Redevelopment District.........................................................1 F. Duration of the TIF District........................................................................................................................................3 G. Property to be Included in the TIF District................................................................................................................3 H. Property to be Acquired in the TIF District................................................................................................................4 I. Specific Development Expected to Occur Within the TIF District..............................................................................4 J. Findings and Need for Tax Increment Financing......................................................................................................4 K. Estimated Public Costs............................................................................................................................................5 L. Estimated Sources of Revenue................................................................................................................................6 M. Estimated Amount of Bonded Indebtetlness............................................................................................................6 N. Original Net Tax Capacity.........................................................................................................................................6 0. Original Local Tax Rate............................................................................................................................................7 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment.......................................................7 Q. Use of Tax Increment..............................................................................................................................................8 R. Excess Tax Increment.............................................................................................................................................9 S. Tax Increment Pooling and the Five Year Rule.......................................................................................................9 T. Limitation on Atlministrative Expenses....................................................................................................................9 U. Limitation on Property Not Subject to Improvements-Four Year Rule...................................................................9 V. Estimated Impact on Other Taxing Jurisdictions...................................................................................................10 W. Prior Planned Improvements.................................................................................................................................11 X. DevelopmentAgreements.....................................................................................................................................11 Y. Assessment Agreements.......................................................................................................................................11 Z. Modifications of the Tax Increment Financing Plan...............................................................................................11 AA. Administration of the Tax Increment Financing Plan...........................................................................................12 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements....................................................................13 Map of the Tax Increment Financing District within the Project Area......................................................EXHIBIT I AssumptionsReport........................................................................................................................... ...EXHIBIT II Projected Tax Increment Report............................................................................................................EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report...................................................................... EXHIBIT IV Market Value Analysis Report............................................................................................................... EXHIBIT V Executive Summary TIF District Qualification Report....................................................:...................... EXHIBIT VI Housing and Redeve/opment Authority of the City of Golden Valley, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the Housina and Redevelopment Authoritv of the Citv of Golden Vallev. "Citv„ means the City of Golden Valley, Minnesota;also referred to as a"Municipalitv". "Citv Council"means the City Council of the City;also referred to as the'Governing Bodv". "County„means Hennepin County, Minnesota. "Redeveloqment Proiect Area" means the Winnetka & Medicine Lake Road Project Area in the City, which is describetl in the corresponding Redevelopment Plan, "Redevelopment Plan" means the Redevelopment Plan for the Winnetka&Medicine Lake Road Project Area. "Proiect Area" means the geographic area of the Redevelopment Project Area "School District" means Independent School District No.281, Minnesota. "State" means the State of Minnesota. "TIF AcY' means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. "TIF District" means Tax Increment Financing(Redevelopment) District the Liberty Crossing Project. "TIF Plan" means the tax increment financing plan for the TIF District(this document). Section B Statutory Authorization See"Statutory Authorization"on page 4 of the Redevelopment Plan for the Project Area. Section C Statement of Need and Public Purpose See"Statement of Need and Public Purpose"on page 4 of the Redevelopment Plan for the Project Area. Section D Statement of Objectives See"Statement of Objectives"on pages 4-5 of the Redevelopment Plan for the Project Area. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70%of the area of the district are occupietl by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50% of the buildings, not including outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed SPRINGSTED Page 1 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots;or other similar structures. (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities,or excessive or vacated railroad right-of-ways;or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02,subdivision 15, if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities;and (iii) have been removed or are unused, underused, inappropriately used,or infrequently used. (iv) A qualifying disaster area, as defined in subdivision 10b. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in(1)above. An executive summary of a report prepared by LHB, Inc.that details the qualifications is included in Exhibit VI. A copy of the entire report with supporting facts and documentation for this determination is on file with the City and is available to the public upon request. The full report will be retained by the City for the life of the TIF District. "Structurally substandard" is defined as buildings 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. Generally, a building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15%of the cost of constructing a new structure of the same size and type. A city may not find that a builtling is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence inclutles recent fire or police inspections,on-site property tax appraisals or housing inspections, exterior evidence of tleterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be matle and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2) the demolition or removal of the substandard building was performed or financed by the City, or was performed by a developer under a development agreement with the City, (3) the City found by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF district,and (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of(4)above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b)a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a retlevelopment district must be used to finance the cost of correcting conditions that allow designation as a retlevelopment district. These costs inclutle, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or SPRINGSTED Page 2 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City may be included in the qualifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the tlate of receipt of the first tax increment. The City anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be though the year 2043). Modification of this plan (see Section AA) shall not extend these limitations. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Pursuant to MN Statutes, Section 469.175, Subdivision 1(b),the City elects to delay receipt of first increment until 2017. Section G Property to be Included in the TIF District The TIF District is an approximately 10.86acre area of land located within the Development District. A map showing the location of the TIF District within the Project Area is shown in Exhibit I. The boundaries and area encompassed by the TIF District are describetl below: Parcel Number* Le al Descri tion 2911821220018 Lot 1, Block 1,Golden Valley VFW Post Number 7051,according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 1325613. 2911821220012 The West 374 feet of the North 205 feet of the South 860 feet of the Northwest Quarter of the Northwest Quarter of Section 29,Township 118, Range 21,except the West 33 feet thereof, according to the United States Government Survey thereof, Hennepin County, Minnesota. Together with an easement for ingress antl egress over the following tlescribed property:The North 30 feet of the North 655 feet of the South 860 feet of that part of the northwest Quarter of the Northwest Quarter of Section 29,Township 118, Range 21, lying West of the East 704 feet thereof,except the West 374 feet of the North 205 feet of the South 860 feet of the Northwest Quarter of the Northwest Quarter of Section 29, Township 118, Range 21,as shown in deetl Document No. 2476007; And together with an easement for private roadway as evidenced by Document No. 1287516. Bein Re istered land as is evidenced b Certificate of Title No. 1305335. 2911821220015 Lot 2, Block 1, McTac Atldition according to the recorded plat thereof, Hennepin County, Minnesota. 2911821220014 Lot 1, Block 1, McTac Addition,according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 689295. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. SPRINGSTED Page 3 Housing and Redeve/opment Authority of the City of Golden Valley, Minnesota Section H Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District; however, the City may undertake the acquisition of property for the installation of public utilities within the TIF District. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of the existing Liberty Crossing site, into a 247-unit apartment and townhome tlevelopment. The redevelopment will also include corresponding public improvements for stormwater mitigation purposes,and other extraordinary costs associated with the redevelopment of the site. The City anticipates using tax increment to reimburse the Developer for a portion of the TIF eligible project costs occurred in the development of the Facility. Included in the projected eligible costs to be reimbursed are costs associated with demolition of existing buildings, site work, public and private utility improvements including stormwater management infrastructure, and other eligible improvements associated with the project. Additionally,the City anticipates using tax increment to finance public improvements and site work on property located within the Redevelopment Project Area, along with related administrative expenses. Construction of the project is expected to begin in 2016,and be completed by 2017. The development is projected to be 100%assessed and on the tax rolls as of January 2, 2018 for taxes payable in 2019. At the time this document was prepared there were no signed construction contacts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District,the City makes the following fintlings: (1) The TIF District qualifies as a redevelopment district; See Section E of this document for the reasons and facts supporting this fintling. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expectetl to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposetl development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur.� The tlevelopment includes the construction of a 247-unit apartment and townhome development along with public improvements for stormwater mitigation. A key component to the redevelopment is the reimbursement of eligible expenses through tax increments. The Developer has indicated they would not undertake the proposed development without the financial assistance. Without the assistance the City has no reason to expect that significant reinvestment in the site would occur without assistance similar to that provided in this plan. Therefore the City has no reason to believe the development would occur but-for the use of tax increment assistance. SPRINGSTED Page 4 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota To summarize the basis for the City's flndings regarding alternative market value, in accordance with Minnesota Statutes,Section 469.175,Subd.3(d),the City makes the following determinations: a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 (except for a small amount for annual appreciation of land value) b. If the proposed development to be assisted with tax increment occurs in the District,the total increase in market value would be approximately$52,898,562, including the value of the building(See Exhibit V). c. The present value of tax increments from the District for the maximum duration of the tlistrict permitted by the TIF Plan is estimated to be$8,954,046(See Exhibit V) d. Even if some development other than the proposed development were to occur, the Council fintls that no alternative would occur that would produce a market value increase greater than $43,944,516(the amount in clause b less the amount in clause c)without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole,for development of the TIF District by private enterprise. Factual basis: The proposed tlevelopment is the construction of 247-unit apartment and townhome redevelopment, in the Development District that is expected to create substantial new tax base for the City and the state. The development clearly meets the City's housing and redevelopment goals of creating additional housing;additionally,the development meets the agency's goal of the removal of blight. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The City does not elect the method of tax increment computation set fo�th in Minnesota Statutes, Section 469.177, Subdivision 3(b); therefore subdivision 3(a) shall apply which indicates the original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions(see method(a)in Section P). Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. TIF Bud et $7,913,693 Interest 9,193,746 Administrative Ex enses 1,900,824 Count Administrative Ex enses 44 321 Total $19,052,584 The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. The City reserves the right to spend available tax increment outside of the TIF District boundaries but within the Project Area. SPRINGSTED Page 5 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section L Estimated Sources of Revenue Tax Increment revenue Net of OSA Reduction $19,052,584 Interest on invested funtls 0 Bond roceeds 0 Loan roceeds 0 Grants 0 Other 0 Total $19,052,584 The City anticipates using future tax increments for reimbursement of public costs incurred from Section K. As increments are collected from the TIF District in future years, a portion of these tax increments will be reserved by the City as reimbursement for public costs incurred (primarily for public infrastructure improvements), either through internal funding or general obligation or revenue debt. The City also reserves the ability to provide financial assistance to the proposed development through the use of pay-as-you-go financing. With pay-as-you-go financing, as tax increments are collected from the TIF District in future years, a portion of these tax increments, if utilized, will be distributed to the developer as reimbursement for eligible costs incurred related to the redevelopment of the site. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the TIF District to pay for such costs including, but not limitetl to,special assessments, utility revenues,federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The City may consitler issuing tax increment bonds to finance all or a portion of the estimated public costs, and reserves the right to issue such bonds in an amount not to exceed $19,052,584(total estimated public costs). Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive,this value is based on the current assessment year. The Authority intends to file the request for certification after to July 1, 2015. Therefore, the original net tax capacity will be the net tax capacity as of January 2, 2015. The Estimated Market Value of all property within the TIF District as of January 2, 2015,for taxes payable in 2016, is $4,103,000, and is classified as commercial property. Upon redevelopment the site will be classified as rental property. Therefore, the estimated tax capacity is $51,288, following the reclassification of the property to rental, which is estimated to be the original net tax capacity of the TIF District. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements;or SPRINGSTED Page 6 Housing and Redevelopment Authority of the City of Go/den Va/ley, Minnesota . (4) changes in property classification rates. Section 0 Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years,the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original local tax rate of the TIF District. At the time this document was preparetl,the sum of all local tax rates that apply to the property in the TIF District,for taxes levied in 2015 and payable in 2016, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating tax increment generated by the TIF District, the final local tax rates for taxes levied in 2014 and payable in 2015, is 144.811%as shown below. 2014/2015 Taxinq Jurisdiction Local Tax Rate City of Golden Valley 54.626% Hennepin County 46.398% ISD#281 33.226% Other 10.561% Total 144.811% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that development will be initiated in 2016, and completed in 2017 creating a total tax capacity for the TIF District of $348,810 as of January 2, 2016. The captured tax capacity as of that tlate is estimated to be $297,523 and the first-year of tax increment is estimated to be $430,845 payable in 2017. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF Plan assume that rental class rates will remain constant at 1.25%. The projections also assume a 2%annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either(a)be determined before the application of fiscal disparity or (b)exclude the protluct of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the City elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method(a)to method (b) above. »The City elects method(a),or M.S. Section 469.177, Subdivision 3(a). SPRINGSTED Page 7 Housing and Redevelopment Authority of the City of Golden Va/ley, Minnesota The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100%of the captured net tax capacity of the TIF District. Such amount shall be known as the retained capturetl net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipatetl life of the TIF District. The City has determined that it will use 100%of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District(see Section T); (2) pay principal antl interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a;or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be usetl primarily and regularly for conducting the business of a municipality,county, school district,or any other local unit of government or the State or fetleral government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. SPRINGSTED Page 8 1 Housing and Redevelopment Authority of the City of Go/den Valley, Minnesota Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan,the City shall use the excess tax increments to: (1) prepay any outstantling tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds;or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five-Year Rule At least 75%of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25%of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay tlebt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: � (1) actually paid to a thirtl party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issuetl and soltl to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year periotl or a reasonable temporary period or are deposited in a reasonably required reserve or replacement funtl. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district;or (4) used to reimburse a party for payment of eligible costs(including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 75% of the tax increments must be used to pay outstanding bonds or make contractual payments obligatetl within the first five years. When outstanding bonds have been defeased antl sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The City anticipates that tax increments will be spent outside of the TIF District (including a portion for allowable administrative expenses)for eligible redevelopment pooling expenditures. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid forthe purchase of land; SPRINGSTED Page 9 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (2) amounts paid for materials and services, including architectural antl engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bontls issued pursuant to section 469.178;or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause(1)to(3). Administrative expenses include amounts paitl for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of(a) 10%of the total tax increment expenditures authorized by the TIF Plan or(b) 10%of the total tax increments receivetl by the TIF District. Section U Limitation on Property Not Subject to Improvements-Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel locatetl within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year,evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Autlitor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed tlevelopment would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes,Section 469.175, Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the life of the TIF District is estimated to be $19,052,584 2. To the extent the project in the TIF District generates any public cost impacts on City-provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the TIF District upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion capturetl by the TIF District. SPRINGSTED Page 10 Housing and Redevelopment Authority of the City of Golden Va/ley, Minnesota 3. The amount of tax increments over the life of the TIF District that would be attributable to School District levies, assuming the School District's share of the total local tax rate for all taxing juristlictions remained the same, is estimated to be$4,387,293. 4, The amount of tax increments over the life of the TIF District that would be attributable to County levies, assuming the County's share of the total local tax rate for all taxing juristlictions remained the same is estimated to be$6,126,576 5. No additional information has been requested by the County or School District that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The City shall accompany its request for certification to the County Auditor(or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a redevelopment district, more than 25%of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledgetl), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not be completed. The City anticipates entering into an agreement for development, and may acquire property for the purposes of undertaking public infrastructure and utility improvements within the TIF District. Section Y Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is locatetl. Any modification or premature termination of this agreement must first be approved by the City,County and School District. The City does anticipate entering into an assessment agreements. SPRINGSTED Page 11 Housing and Redeve/opment Authority of the City of Golden Valley, Minnesota Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Development District or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the City; increase in the total estimated public costs;or designation of property to be acquiretl by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District;and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF DistricYs original net tax capacity, or the City agrees that the TIF DistricYs original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan,the following actions shoultl occur on an annual basis: (1) prior to July 1,the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Autlitor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certifietl shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be motlified by any approved enlargement or reduction of the TIF District; SPRINGSTED Page 12 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will file the TIF Plan, and any subsequent amendments thereto,with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175,subdivision 4A. The City will comply with all reporting requirements for the TIF District under Minnesota Statutes,Section 469.175,subdivisions 5 and 6. SPRINGSTED Page 13 Exhibit 1 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT)DISTRICT Within Winnetka&Medicine Lake Road Redevelopment Project Area � �Project Aren . a,..a; ; �� g TiF Disbict �-� .�` _._ . :�c �__ �S :c-s �� ` �y , �cae..r.�;�. r f/d s`, :s._ Cser ti� _a.. _.-_ , 'F-.q � ]f00 _�� `'.. 'r`�� .- _r.. ,l''� V fI =�JO _ . �f'� �_,�Z � _LEC ; E--.,.e.�, � . � i _wa i Sat _+._ 1�4 M1� .'�fi, ��1� . .. ... . ..._ .._ .. . ... ...��t' *�ro =soo j' _... �oea �ss> � ' '" ;yA �'. _�x =3� =xe ,i :aa�o :ix I __ I �� :-'�x ve N • ______. \ . ..0.� �� " _" \ 3u ,'9G�i - - $��'.. \ � �j .. _. .. _ , .. _�l �s6 L . �' --cc Qi _u � _1?D �1'�l �13a _��0 � �� li'/J�fl.'V'�'�'Cd �' �. ' S �� ' � _•�C _. 4 ;�.:•-8 � ' .L .. �� +:� KC � .1Q? . 1 ?iY � -":C � � Q - � :•=5 � . J �, 7/.00 � . _ � -e.�� ra.o -�:+o --.: --__ -�.z -a+� re�ro >em -c+c -cv -cao Q, '�ro vac r,oc � »u Winnetka Meights v� � � �'�'" �, .�. ,o., n�. a., 1 ' � _�, -u, �_ _wC '� �, =� ; � � _ , . _ , } _ _ _ j � � �o :o�. ' �:, ro:, aoro ro_, ' 1 av�c :v_' =c.o �..2- ;�-v :c.s �.'o � 1�'�` -�-� _-.. =ao• :�o =a�• tw --- i.,:� :�.�.- =ac.� =a=c i►.rere 'ro.ro�s e_. Tax Increment Financing A..Q� (Redevelopment) District ��6�"�"�"b within Winnvtica a�fd Medicine Lske Rd �°`:'`�D`�""'�>1°GN""� am Rrdevelopmee�t Pro)ect Area SPRINGSTED Page 14 Exhibit ll �� Assumptions Report �� City of Golden Vailey,Minnesota Tax Increment Financing(Redevelopment)District TIF Projections at�34.881 M-Full Tenn Liberly Crossing Project Type of Tax Incremerrt Fnancing District Redevelopmerrt Maximum Duration of TIF District 25 years from 1st mcrement Projected Certification Request Date � 09/01/15 Decertification Date � 12/31/43 (26 Years of Increment) 2015J2016 Base Estimated Martcet Value � $4,103,000 Original Net Tax Capacity $51,288 Assessmerrt/Cdlectian Year 2016/2017 2017/2fl18 2018/2019 2019V2020 Base Est�nated Ma�icet Value $4,103,000 $4,103,000 $4,103,000 $4,103,000 Estimated Increase in Value-New Cor�struction 0 23,801,800 31,336,096 32,044,878 Total Est�nated Market Vakae 4,103,000 27,904,800 35,439,096 36,147,878 Tot�Net Tax Capacity $51,288 �348,810 E442,989 $451,848 City of Golden VaUey 54.626% Hennepin CouMy 46.398% ISD#281 33.226% Otfier 10.561°� Local Tax Capacihr Rate 144_81196 2014/2015 Fiscal Dispa�ities Corrtribution From TIF District 0.0000°/a Administrative Retainage Percerrt(ma�amum = 10°r6) 10.00% PooG�g Percent 0.00°/a Present Value Date 8�Rafie 09/01h5 5.00% PVAmourrt $7,913,693 Notes Projections assume no future changes to classification rates and current tax rates remain constant Projections are based on 247 Units with total vakie of$34.881 M and a 2%market value inflator. Value assumption is reflectiv�e of buiding and hand va�e combined. Projections assume commencment of constructan in 2016,with project completion�2017, with the first receipt of partial T�in 2018. County Acim�exper�ses assume 2°�annual inflation in cost estimabe. SPRINGSTED Page 15 Exhibit lll Projected Tax Increment Report City oi Golden Valley,MlnnesoW Tax Increment Financing(Redeveiopment)District TIF ProJectlons at E34.881M•Full Tertn Liberty Crossing Project Less: Refained Times: Less: Less: Less: P.V. Pnnual Total Total Orginal Captured Tax Mnual StateAud. SubtoWl Counly Admin. Mnual Mnual Period Market Net Tax Net Ta�c Net Tax Capacity Gross Tax Deduction Net Tax Admin Retainage Net Net Rev.To Ending Value CapacRy Capacity Capacity Rate Increment 0.360% Increment Retainage 10.00% Revenue 09/01/15 1 2 3 4 ' 5 6 7 8 9 10 11 12 5.00% 12/31/16 4,103,000 51,288 51,288 0 144.811% 0 0 0 0 0 0 0 12/31/17 4,103,000 51,288 51,288 0 144.811% 0 0 0 0 0 0 0 12/31/18 27,904,800 3A8,810 51,288 297,523 144.811% 430,645 1,551 429,294 1,146 42,815 385,333 327,495 12/31/19 35,439,096 442.989 51.288 391,701 144.811% 567,226 2,042 565.184 1.348 56.384 507.452 410,747 12/31/20 36,147,878 451,848 51,288 400,561 144.811% 580,056 2,088 577,968 1,375 57,659 518.934 400,039 12/31/21 36,870,835 460,885 51,288 409,598 144.811% 593,143 2,135 591,008 1,402 58,961 530.645 389,588 1Z31/22 37,608,252 47Q103 51.288 418.816 144.817% 606,491 2,183 604,308 7,430 60,288 542.590 379,388 12/31/23 38,360,417 479,505 51.288 428218 144.811% 620,106 2,232 617,874 1,459 61,641 554,774 369,435 12/31/24 39,127,626 489,095 51,288 437,808 144.811% 633,994 2,282 631,712 1,488 63,022 567,202 359,725 1Z31/25 39,910,178 498,877 51,288 447,590 144.811% 648,159 2,333 645,626 1,518 64.431 579,877 35Q251 1Z31/26 40,708,382 508,855 51,288 457.567 144.811% 662,608 2,385 66Q223 1,548 65,867 592,808 341.011 12/31/27 41,522,549 519,032 57,288 467,744 744.811% 677,345 2.438 674,907 1,579 67,333 605,995 331,997 1Z31/26 42,353,000 529,413 51,288 47$125 144.811% 692,378 2,493 669,685 1,611 68,827 619,447 323,207 12/31l29 43200,060 540.001 51,288 488,713 144.811% 707,711 2,548 705,163 1,643 70,352 633,168 314,634 12/31/30 44,O6A,061 550.801 51,288 499,513 144.811% 723,350 2,604 720,746 1,676 71,907 647,163 306,275 12/31/31 44,945,343 561,817 51,288 510,529 144.811% 739.303 2.661 736.642 1.710 73.493 661.439 298.125 12/31/32 45,844,250 573.053 51.288 521,766 144.811% 755.574 2,720 752,854 1.744 75.111 675,999 290,178 1Z31/33 46,761,135 564,514 51288 533227 144.811% 772,171 2,780 769,391 1,779 76,761 690,851 282,432 1Z31/34 47.696.357 596,204 51,288 544,917 144.811% 789.100 2.841 786.259 1.814 78.444 706,001 274.882 12/31/35 48,650284 608,129 51288 556,841 144.811% 806.367 2,903 803,464 1.850 80.161 721,453 267.522 iZ31/36 49,623,290 620,291 51,288 569,004 144.811% 823,980 2,966 821,014 1,887 81,913 737,214 260,349 12/31l37 50,615,756 632,697 51,288 581,409 144.811% 841,945 3,031 838,914 1,925 83,699 753,290 253,358 iZ31/38 51,628,071 645,351 51,288 594,063 144.811% 860269 3,097 857,172 t,964 85,521 769,687 246,546 1Z31/39 52,660,632 658,258 5t,288 606,970 144.811% 878,960 3J64 875,796 2,003 87,379 786,414 239,908 12/31/40 53,713,845 671,423 51266 620,136 144.611% 898,025 3,233 894,792 2,043 89,275 803,474 233,441 12/31/41 54,788,122 684,852 51,288 633,564 144.811% 917,470 3,303 914,167 2,084 91208 820,875 227,139 12/31/42 55,883,884 698,549 51,288 647,267 144.811% 937,305 3,374 933,931 2,126 93,181 838,624 221,000 12/31/43 57,001,562 712,520 51,288 661,232 144.811% 957,537 3,447 954,090 2,168 95,192 856,730 215,021 $19.121418 $68.834 $79.052.584 $44,322 $1.900,825 $17.107,439 $7.913.693 SPRINGSTED Page 16 Exhibit IV EsiNr�abd on Olher Taxin Juds�ctloos Re ort � Cily oi Golden Vaiey,Minnesofa � Taz Merernent Financing(RedevelopnenQ Distriet � 7�Projecbons at 534.881M-FuN Term � LibeAy Cross�g Project wrtnow Project or TF Dishict V1fAh Prolect aM TF District Final Projected Hypothetical 2014/20t5 � 2014l2015 Retsined New FlypoMrotical F�qoUrcticd Tax Generoted Taxahle � 20142015 Taxable Captured Taxabk Adjusted Decrease In by Retained Ta�g Net Ta�c Locd Net Taz Net Tarz NN Tax Locd Local C�tured ,kirisdiction CaascilY(1) Taz Ra�e CapacN(1) + CapaciN = �c�Y Ta�c Rate(') Tax Ra�(') NT.C.C) cay�rcow��v�y sz,�ss.z�s' sa.szs� �z.�sa,z�s' sssi.r3z sz,su,a4a ss.s2sx, �.�o�% as�.szs �iennepin CouMy 1,354,6G4,575� 46.398% 1,354,654.575 661,232 1.355,315.807 46.375% 0.023% 306,649 ISD#281 96.257.343� 33.226'K 96.257.343 661,232 96,912.575 32999% 0.72796 218,202 Other(2) — � 10.561% — 661,232 — 10_561% — — ToWs 144.811% 143.�61% 1.350% • SfalemeM 1: M the projeckd Refained Captured Nel Tax Capacily of the TF Datrict was hypotheticaly available�each of the ta�dng jurisdiclions above.the result would be a lower bcd tnz rate(see Fypotheticd Adjushd Tex Rele above) which would produce lhe same amaunt of tawes br each taxing jurisdic6on. In such a case,the fital bcal tax rafe wauld decrease by 1.350%(see Fypothetical Decrease n Local Tax Rate above). The hypoU�elical�c tlat the Refaired Captured Nat Tax Capxity of the i1F Dishict wald ga�era6a i�ako chown abotie. Sq6emeM� Since the projec�d Retained Captured Net Tax Capacity of the TF pistrict is noi arailable to the tapng juradicGons, then there is no inpact on tasses leuied or bcal lax rates_ (1) Taxable net ta�c aapacity=btal net tax capacRi[yY-captured T1F-fiscal disparity cakrbution�if appicable. (2) The impact on these ta�drg prisdictior�s is negigi6le since they represeM oriy 729%of the rotal tax r�e. SPRINGSTED Page 17 Exhibit V Market Value Analysis Re ort � City of Golden Valley,Minnesota � Tax Increment Financing(Redevelopment)District � TIF Projections at i34.881M -Full Term � Liberty Crossing Project Assumptions Present Va�e Date � 09/01/15 P.V_ Rate-Gross T.I_ � 5.00% Increase a�EMV With TIF District � $52,898,562 Less: P.V of Gross Tax Increment 8,954,046 Subtotal $43,944,516 Less: Increase in EMV Without TIF 0 Difference $43,944,516 Annual Present Gross Tax Value @ Year Increment 5.009�0 1 � 2018 � 430,845 370,670 2 2019 � 567,226 464,765 3 2020 � 580,056 452,645 4 2021 � 593,143 440,816 5 2022 � 606,491 429,273 6 2023 � 620,106 418,009 7 2024 � 633,994 407,020 8 2025 � 648,159 396,299 9 2026 662,608 385,841 10 2027 677,345 375,641 11 2028 692,378 365,693 12 2029 707,711 355,992 13 2030 723,350 346,532 14 2031 739,303 337,309 15 2032 755,574 328,317 16 2033 772,171 319,551 17 2034 789,100 311,007 18 2035 806,367 302,678 19 2036 823,980 294,561 20 2037 841,945 286,651 21 2038 860,269 278,942 22 2039 878,960 271,431 23 2040 898,025 264,113 24 2041 917,470 256,983 25 2042 937,305 250,037 26 2043 957,537 243,270 $19,121,418 $8,954,046 SPRINGSTED Page 18 Exhibit VI PART 1 - EXECUTIVE SUMMARY PURPOSE OF EVALUATION LI�13�vas hired b�' thc Cit�� of Golden 1�alley to inspect and e�-aluate the propertics�vithin a '1"ax IncYement Financin�;Redevelopment District ("TIF District") proposed to be established by tlic Cin�. '1'he proposed"1'I1�District is bounded b�-1�ledicu7e Lake Road, Rhode Island A�-enue Nort11, and \�'innetka Avenue North (Diagram 1). '1'he purpose of LI�B's work is to determine whether tl�e proposed '1'I1� District meets the statutor�� reyuirements for coverage, and whether four (�) buildings on four (4) parcels,locatcd �vithin the proposed TIF District, meet the qualifications required for a Rede�-elopment District. •'�'� : - - .-� ��r � ��x. .,., . ��;; - - . ,�,; .�-4,.., t t�� ' s�!r' ��..�-� � �- �s'�! � _�i - t � � �. ;. u � `� � � �` " � �' �,,,., � �"�, �� i� � t �� ' �� _ � i ��y � � — �€ �, �• L �>. � -, ' �, ,�;, �' ' � ' .�w �. ..r L,�.;. ,,�«•: � f ��;��' r"_'""' .�� ' � €E •, �� ':;,, � s + �, w , � • �rp,- 7 ' ? .�� .,,.��; --e�. —'C'�?'7:+'t'3".° �5 "' _ �d�� z`��.� � . ��4�� '"�fr�.. A ♦ ... �� _ � �.'�"�,+ � f ' •. _ - ^ �' �Y„ , .� � � j. ¢;e �;" ��`�''`x""�- '�'" � �" �[� � :�"� ��' � �� j �: � � � �. � _�� .'ry • .+�. Diagram 1-Proposed TIF District SCOPE OF WORK The proposed"1"IF District consists of four (-F) parcels ��ith four (�) structures. Four (4) buildings were inspected on March 11, 2015. Building Code, Condition Dcficiencj� and Contest�nal��sis SPRINGSTED Page 19 Exhibit VI Reports for the buildings that were inspected are located in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutor��criteria for a Redevelopment District under Minnesota Statutes, Section 4(9.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement. • 100 percent of the buildings are structurall�- substandard which is abo�re the 50 percent requirement. • The substandard buildings are reasonabljr distributed. SPRINGSTED Page 20 Redevelopment Plan for Winnetka & Medicine Lake Road Redevelopment Project location: Southeast Quadrant of Winnetka Avenue and Medicine Lake Road Golden Valley, Minnesota 1 REVIEW AND APPROVAL DATES Golden Valley HRA Approval: July 14, 2015 Planning Commission Review: Approved by the City Council: TABLE OF CONTENTS Pa e s Introduction.................................................................................................................3 Project Area Boundaries.............................................................................................3 Background..................................................................................................................3 Redevelopment Opportunities..................................................................................3 PublicImprovements..................................................................................................4 Statement of Need and Public Purpose, Statutory Authorization........................4 Statementof Objectives.............................................................................................4 Itemized Goals and Objectives..................................................................................5 Policies..........................................................................................................................6 LandUse................................................................................................................6 Financing................................................................................................................7 Transportation......................................................................................................8 Definitions.....................................................................................................................8 Administration of Redevelopment Project..............................................................8 Maintenance and Operations..........................................................................8 Payment of Public Costs....................................................................................8 Property Acquisition and Proposed Reuse....................................................8 Relocation............................................................................................................9 Environmental Controls; Land Use Regulations.............................................9 Park and open Space to be Created.................................................................9 Amendments.......................................................................................................9 Mapof the Project Area............................................................................................10 2 Introduction In the 1960's the area southeast of the intersection of Medicine Lake Road and Winnetka Avenue North was developed with a variety low density commercial and industrial oriented uses. Overtime, development patterns in the region have become more urban in form, real estate markets have changed and development patterns have resulted in flooding in the area. Recently, encouraged by interest from the private sector, the City of Golden Valley has taken the initiative to re-guide and rezoned many of the parcels to accommodate new higher density residential land uses and address the flooding issues in the area. � This document serves as the Redevelopment Plan for the area, to be known as the Winnetka& Medicine Lake Road Redevelopment Project. It defines the geographic area of proposed improvements, outlines existing conditions, discusses anticipated redevelopment, and sets goals, objectives and policies that will guide projects as they are implemented. Project Area Boundaries The Redevelopment Plan Project Area extends from Medicine Lake Road south to 23�d Avenue North and from Winnetka Avenue east to the Canadian Pacific Railroad tracks. Parcels containing DeCola Ponds A, B and C are also included in the Project Area.The map in Exhibit A illustrates the boundaries of Project Area which includes private parcels and public lands and rights of way.The Project Area matches the boundaries of a proposed tax increment financing redevelopment project area where up to twenty five percent of the TIF proceeds could be spent, most likely for infrastructure improvements. Background The Project Area was originally low lands. Aerial photographs from 1945 show wetlands and agricultural land uses.The area began to develop in the 1960's with low density commercial and industrial uses. Wetlands were filled and portions of the area remained low. Overtime, the existing development has trended towards obsolesce and investment in the buildings has diminished. A recent study by LHB Inc.found a number of buildings to be "substandard" under Minnesota TIF statutes. Currently the area includes a small auto repair shop, two restaurants (a walk-up and a sit down style), a multi-tenant building owned by the local VFW club, a small car wash, a newly developed drug store, a vacant industrial building, and self-storage facility.The east side of the Project Area includes a multi-family housing development and Pennsylvania Park, which includes two flood storage ponds.To the south, is an additional pond and a single family neighborhood. Flooding in the area is common, although it is not in a federally mapped flood plain. A study is currently nearing completion that will document the cause of the flooding and identify specific measures to reduce the flooding in the area by creating more flood storage. A proposed multi- family development project provides an opportunity to construct and fund additional flood storage in the area. 3 Redevelopment Opportunities In early 2015, a developer proposed redeveloping four parcels within the Project Area with townhomes and a large apartment building. If completed, the redevelopment would utilize approximately fifty percent of the land within the Project Area. Other redevelopment opportunities may emerge over time on small individual parcels or a combination of parcels within the Project Area. Public Improvements Public improvements proposed for the Project Area include the development of additional flood storage to reduce flooding in the DeCola Ponds sub-watershed area and ensure that the Medicine Lake Road and Winnetka Avenue intersection remain passable to emergency vehicles during a flood event. Flood storage may include the construction of underground vaults,the creation of new open storage or the expansion of existing open storage, and the construction of conveyance swale or pipe to move water at a controlled rate through the area. Additionally, removal of some portions of Rhode Island Avenue North may occur to reduce storm water runoff and provide flood storage and conveyance. Finally,trail connections in the area, particularly from redeveloped areas to existing parkland. Statement of Need and Public Purpose, Statutory Authorization The Housing and Redevelopment Authority (HRA) finds there is a need for development within the City and the Project Area in order to provide housing opportunities,to improve the local tax base, address public infrastructure needs, and to improve the general economy of the City and the State. The economic security of residents depends upon proper development of property that meets any one of a number of conditions, including properties with values too low to pay for the public services required or rendered and properties where lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The HRA finds that in many cases, such property cannot be developed without public participation and assistance in various forms, including property acquisition and/or write-down; proper planning; the financing of development costs associated with clearance, grading, and soils correction; and various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone, the HRA believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The HRA finds that in certain cases, property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. Statement of Objectives The HRA seeks to achieve one or more of the following objectives with respect to the Project Area, as the Authority may deem appropriate and necessary: 4 • Promote and secure the prompt development of property within the Project Area, such property which is not now in its most productive use, in a manner consistent with the Comprehensive Plan of the City,thus realizing Comprehensive Plan land use, and tax base goals. • Assist development in the Project Area through the acquisition or write-down of certain interest in property which is not now in productive use or in its highest and best use, to make or defray the cost of soil corrections or site improvements on said property, and to construct or reimburse for the construction of public improvements and other facilities on or for the benefit of said property and the public, thereby promoting and securing the development of other land within the Project Area. • Secure the increase and availability of rental housing property for individuals and families of low to moderate income within the Project Area. • Secure the increase of industrial and commercial property subject to taxation within the Project Area. • Promote and secure additional employment opportunities within the City and to prevent the loss of existing employment opportunities, thereby preventing the loss of valuable human resources. • To provide funding for an ongoing development strategy and to prioritize the use of available resources. • Implement and revise from time to time, as may be deemed necessary or desirable, a consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis. • Employ any of the powers of the Authority for the benefit of the Project Area in such cases and upon such terms as the Authority may deem appropriate. • Construct or acquire facilities deemed desirable for the development of the Project Area. Itemized Goals and Objectives To achieve its mission of structured redevelopment,this Plan has identified the following goals with related objectives for this Project Area to encourage cohesive planning and structured renewal within the area. It then outlines policies that will help to achieve the goals and objectives. Goal 1— Redevelop obsolete properties Objectives: • Redevelop blighted, functionally obsolete and/or economically unsustainable buildings. • Establish new uses compatible with existing uses. • Spur reinvestment in the broader area through new development and an expanded market. 5 Goal 2—Create additional flood storage in the DeCola Ponds sub-watershed Objectives: • Use redevelopment to create and fund the construction of additional flood storage in the Project Area. • Ensure new development, at a minimum, does not reduce existing flood storage. • Minimize the impact of flooding on private properties and structures. Goal 3— Expand housing opportunities Objectives: • Increase housing choices and options within Golden Valley. • Promote quality, sustainable and green construction and development. • Require amenities as part of new development that improve quality of life for residents. Goal 4— Protect the environment Objectives: • Ensure wetlands are protected and enhanced. • Reduce or eliminate soil and wetland contamination. • Preserve quality vegetation and reduce or eliminate invasive or disease-susceptible species. Goal 5— Maintain a regional framework Objectives: • Plan for growth compatible with the Metropolitan Council development framework. • Design public infrastructure in cooperation with other public agencies. • Participate in grant programs available through Hennepin County, the Metropolitan Council and other agencies. • Develop and maintain positive relationships with surrounding communities and governmental agencies. • Continue participation in cooperative traffic management strategies. • Improve transit options. Policies Land Use The City will study planned land uses to determine the need or desirability of individual parcels or area-wide comprehensive plan or zoning amendments to accommodate desired land uses. The City and HRA will assure that its review processes, zoning and building regulations will promote desired development projects. The City will assure that new uses in the redevelopment area are compatible with existing development and the City's Land Use Plan. The City and HRA will review existing properties in the area to consider their long term viability and/or options for alternative uses. 6 Land use plans will promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council's regional growth strategy. Financing The City and HRA will identify criteria to target redevelopment funds such as tax increment financing, tax abatements, Livable Communities, Community Development Block Grants, Hennepin County and other funding made available by the Legislature,other agencies or governmental units. The City and HRA will consider providing public assistance to redevelopment projects that serve a substantial public purpose, remove blight, or mitigate contamination. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be paired with other funding options such as assessments based on the Golden Valley Special Assessment Policy. The City will consider franchise fees and utility surcharges to underwrite the cost of utility and infrastructure upgrades. Design and Environmental Standards The City will promote best practices to meet the highest environmental standards. The City and HRA will identify approaches and/or incentives to promote a corridor beautification program.This program will include both public and private components. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates of this plan. Transportation The City will work with Metro Transit to monitor transportation needs of area residents and workers and to identify ways to improve transportation services, including improving transit routes and working with area businesses to develop transportation management plans. Definitions The terms defined in the section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the Housing and Redevelopment Authority of the City of Golden Valley. "C�" means the City of Golden Valley, Minnesota, also referred to as a "Municipality". "Citv Council" means the City Council of the City. "County" means Hennepin County, Minnesota. "Governin� Bodv" means the Board of Commissioners of the Authority. 7 "HRA Act" means the Minnesota Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 through 469.047, both inclusive. "Land Use Re�ulations" means all federal, state and local laws, rules, regulations,ordinances and plans relating to or governing the use or development of land in the Project Area, including but not limited to environmental, platting, zoning and building code laws, regulations and ordinances. "Proiect Area" means the geographic area of the Winnetka & Medicine Lake Road Redevelopment Project Area. "Public Costs" means the costs of land acquisition, public and site improvements, repayment of debt service on tax increment bonds, and other eligible costs as set forth in the Redevelopment Plan and Tax Increment Financing Plan(s). "Redevelopment Plan" means the Redevelopment Plan for the Project Area. "State" means the State of Minnesota. "TIF Act" means Minnesota Statures,Section 469.174 through 469.1799, both inclusive. "TIF District" means any tax increment financing district presently established or to be established in the future in the Project Area. "TIF Plan" means the respective tax increment financing plan for each TIF district located within the Project Area. Administration of Redevelopment Project Maintenance and Operations Maintenance and operation of the Project Area will be the responsibility of the HRA Director,who shall serve as administrator of the Project Area. Each year the administrator will submit to the Governing Body the maintenance and operation budget for the following year. The administrator will administer the Redevelopment Plan pursuant to the provision of the HRA Act, provided,that such powers may only be exercised at the direction of the Governing Body. No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Governing Body. Payment of Public Costs It is anticipated that the Public Costs of the Project Area will be paid primarily from tax increments or proceeds of tax increment bonds. Such costs are identified in the TIF Plan(s)for the corresponding TIF District(s) located within the Project Area.The Authority reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such Public Costs including, but not limited to, special assessments,federal or state funds,and investment income. Property Acquisition and Proposed Reuse The HRA may acquire property or appropriate interest therein within the Project Area as it deems necessary or desirable to assist in the implementation of the Redevelopment Plan. 8 The Redevelopment Plan contemplates that the HRA may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property,the Governing Body will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the HRA to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the HRA is a party. Relocation Any person or business that is displaced as a result of the Redevelopment Plan will be relocated in accordance with the provisions of the HRA Act and other applicable law. Environmental Controls; Land Use Regulations All HRA actions, public improvements, and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations. Park and Open Space to be Created Park and open space created within the Project Area will be done so in accordance with the zoning and platting ordinances of the City. Amendments The HRA reserves the right to alter and amend the Redevelopment Plan subject to the provisions of state law regulating such action. 9 Exhibit A Redevelopment Plan Project Area QPro�ect Area �tttfi� -�l��'-�t}---- _ssc --� - ,'S "57 , '� ' �� . 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''�'' I �': Winnetka 8 `;�::°�` -_==�` e Medicine Lake Rd -"��°°�==-:,�°.��°rs°"`�°'�` o^cre:r��^ez��*0�6,l Iaw.�onorop�aonr�:0!:! �- �� Redevelopment Plan =-�e•sc.ae'ca.+ty+aarorrw�ea Project Area �'�.« 10 Winnetka & Medicine Lake Road Redevelopment Plan Project Area Parcels PID# BLDG# STREET NAME CITY ZIP 2911821220001 2550 WINNETKA AVE N GOLDEN VALLEY 55427 2911821220002 7825 MEDICINE LAKE RD GOLDEN VALLEY 55427 2911821220005 2911821220006 2400 RHODE ISLAND AVE N GOLDEN VALLEY 55427 2911821220012 2480 WINNETKA AVE N GOLDEN VALLEY 55427 2911821220014 2430 WINNETKA AVE N GOLDEN VALLEY 55427 2911821220015 2485 RHODE ISLAND AVE N GOLDEN VALLEY 55427 2911821220017 2300 WINNETKA AVE N GOLDEN VALLEY 55427 2911821220018 7751 MEDICINE LAKE RD GOLDEN VALLEY 55427 2911821220019 2500 WINNETKA AVE N GOLDEN VALLEY 55427 2911821230002 11 cit�y o�f olden E � t� � aNt� � ��., �,.'� Housing and Redevelopment Authority 763 593 8002/763 593 8109(fax) Executive Summary For Action Golden Valley Special Housing and Redevelopment Authority Meeting September 1, 2015 Agenda Item 3. A. Approval of Modification to Redevelopment Plan, Tax Increment Financing District (Housing), Cornerstone Creek, and Tax Increment Financing Plan Prepared By Marc Nevinski, Assistant Director Summary The HRA is asked to consider approval of a modification to the Highway 55 West Redevelopment Project Area Tax Increment Financing District (Housing), Cornerstone Creek and the Tax Increment Financing Plan. Project is located along Golden Valley Road in the existing Highway 55 West Redevelopment Area. CDHC Cornerstone Creek LLC is proposing to construct a 45 unit affordable, permanent, and supportive housing project to serve developmentally disabled adults. The project will be located on parcels currently addressed as 9300 and 9310 Golden Valley Road. Assistance with the project in the form of a tax increment financing district (housing) has been requested to help develop the project and maintain rents at an affordable rate for the tenants. Cornerstone Creek Housing TIF District will be a 25 year district. The rental units must be occupied by residents earning less than 50%of the county median income and the income limits will apply for the duration of the district and 80% or more of the project must be used for residential purposes. The City Council approved Resolution 14-46 on May 20, 2014 expressing its intent to create and administer a tax increment financing district for the project. On July 14, 2015 staff informed the HRA of the project and the intent to begin the establishment of a TIF district. On luly 31, 2015 the County and School district received the required impact letters. Public hearing notices were published in the SunPost on August 20, 2015. On August 24, 2015 the Planning Commission adopted resolution 15-02 finding that the development was in conformance with the City's Comprehensive plan. The project received final PUD approval from the City Council on August 18, 2015. Attachments Resolution Approving a Modification to the Redevelopment Plan for Highway 55 West Redevelopment Project Area, and Tax Increment Financing District (Housing), Cornerstone Creek, Within Highway 55 West Redevelopment Project Area and The Tax Increment Financing Plan Therefor (2 pages) Tax Increment Financing Plan for Tax Increment Financing (Housing) District Within Highway 55 West Redevelopment Project Area (Cornerstone Creek Project) draft dated July 31, 2015 (19 pages) Redevelopment Plan for Highway 55 West Redevelopment Area (11 pages) Recommended Action Motion to adopt Resolution Approving a Modification to the Redevelopment Plan for Highway 55 West Redevelopment Project Area, and Tax Increment Financing District (Housing), Cornerstone Creek, Within Highway 55 West Redevelopment Project Area and The Tax Increment Financing Plan Therefor. Resolution15-5 September 1, 2015 Commissioner introduced the following resolution and moved its adoption: RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HIGHWAY 55 WEST REDEVELOPMENT PROJECT AREA, AND TAX INCREMENT FINANCING DISTRICT (HOUSING), CORNERSTONE CREEK, WITHIN HIGHWAY 55 WEST REDEVELOPMENT PROJECT AREA AND THE TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority (the "Authority") of the City of Golden Valley, Minnesota (the "City"), as follows: WHEREAS, the City and the Authority have 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 Redevelopment Project Area (the "Project Area"); WHEREAS, it has been proposed that the Authority approve a modification to the Project Plan (the "Project Plan Modification") and the Tax Increment Financing Plan (the "TIF Plan", and together with the Project Plan Modification, the "Plans") for Tax Increment Financing District (Housing), Cornerstone Creek, within Highway 55 West Redevelopment Project Area (the "District"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794, all inclusive, as amended (the "AcY'); WHEREAS, the Authority has investigated the facts relating to the Plans and has caused the Plans to be prepared; and WHEREAS, the City Council of the City (the "Council"), has scheduled a public hearing on the Plans to be held on September 1, 2015, in accordance with Minnesota Statutes, Chapter 469 (the "Public Hearing"). NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. Adoption. The Plans are hereby adopted based on the findings herein, subject to approval by the Council following the Public Hearing. Section 2. Findings. The Authority hereby makes the following findings: (a) (i) the land within the Project Area would not be available for redevelopment without the financial aid to be sought under the Project Plan; (ii) the Project Plan, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise; and (iii) that the Project Plan, as modified, conforms to the general plan for the development of the City as a whole; Resolution 15-5 - Continued September 1, 2015 (b) the TIF District is a "housing district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11; and (c) (i) the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future, (ii) the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole, and (iii) the TIF 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. Section 3. Transmittal. The Authority does hereby transmit the Plans to the Council for approval after the same have been considered by the Council subsequent to the Public Hearing. Section 4. Filing. Following approval by the Council, the Secretary is hereby authorized and directed to file the Plans with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Steven T Schmidgall, Chair ATTEST: Marc Nevinski, Assistant Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Assistant Director. City of Golden Valley, Minnesota Golden Valley Housing and Redevelopment Authority Tax Increment Financing Plan for Tax Increment Financing (Housing) District Within Highway 55 West Redevelopment Project Area (Cornerstone Creek Project) Draft: July 31, 2015 Public Hearing: September 1, 2015 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651)223-3000 www.springsted.com TABLE OF CONTENTS Section Pa e s A. Definitions.................................................................................................................... 1 B. Statutory Authorization................................................................................................. 1 C. Statement of Need and Public Purpose....................................................................... 1 D. Statement of Objectives............................................................................................... 1 E. Designation of Tax Increment Financing District as a Housing District........................ 1 F. Duration of the TIF District and the Three Year Rule................................................... 2 G. Property to be Included in the TIF District.................................................................... 2 H. Property to be Acquired in the TIF District................................................................... 3 I. Specific Development Expected to Occur Within the TIF District................................. 3 J. Findings and Neetl for Tax Increment Financing ......................................................... 4 K. Estimated Public Costs................................................................................................ 4 L. Estimated Sources of Revenue.................................................................................... 5 M. Estimated Amount of Bontled Indebtedness................................................................ 5 N. Original Net Tax Capacity............................................................................................ 5 0. Original Tax Capacity Rate.......................................................................................... 6 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment........... 6 Q. Use of Tax Increment................................................................................................... 6 R. Excess Tax Increment.................................................................................................. 7 S. Tax Increment Pooling and the Five Year Rule............................................................ 7 T. Limitation on Administrative Expenses......................................................................... 8 U. Limitation on Property Not Subject to Improvements-Four Year Rule........................ 8 V. Estimated Impact on Other Taxing Jurisdictions.......................................................... 8 W. Prior Planned Improvements........................................................................................ 9 X. Development Agreements............................................................................................ 9 Y. Assessment Agreements............................................................................................. 9 Z. Modifications of the Tax Increment Financing Plan...................................................... 10 AA. Administration of the Tax Increment Financing Plan.................................................... 10 AB. Financial Reporting and Disclosure Requirements...................................................... 11 Map of the Tax Increment Financing District....................................................................................... EXHIBIT I AssumptionsReport ........................................................................................................................... EXHIBIT II Projected Tax Increment Report......................................................................................................... EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report..................................................................... EXHIBIT IV Market Value Analysis Report............................................................................................................. EXHIBIT V Projected Pay-As-You Go Report....................................................................................................... EXHIBIT VI Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the Housing and Redevelopment Authority of the City of Golden Valley. "C�means the City of Golden Valley, Minnesota;also referretl to as a"Municipalitv". "Citv Council" means the City Council of the Golden Valley; also referred to as the'Governina Bodv". "Countv„ means Hennepin County, Minnesota. "Redevelopment Proiect Area" means the Highway 55 West Redevelopment Project Area in the City, which is described in the corresponding Redevelopment Plan. "Redevelopment Plan" means the Redevelopment Plan for the Highway 55 West Project Area. "Proiect Area" means the geographic area of the Redevelopment Project Area. "School DistricY' means Intlepentlent School District No. 270, Minnesota. "State"means the State of Minnesota. "TIF AcY' means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive. "TIF District" means the Tax Increment Financing (Housing) District the Cornerstone Creek Project. "TIF Plan" means the tax increment financing plan for the TIF District(this document). Section B Statutory Authorization See"Statutory Authorization"on page 4 of the Redevelopment Plan for the Project Area. Section C Statement of Need and Public Purpose See"Statement of Need and Public Purpose"on page 4 of the Redevelopment Plan for the Project Area. Section D Statement of Objectives See "Statement of Objectives"on pages 4-5 of the of the Retlevelopment Plan for the Project Area. Section E Designation of Tax Increment Financing District as a Housing District Pursuant to the TIF Act,the Authority seeks to create the Cornerstone Creek TIF District and adopt a TIF Plan for the TIF District. The Authority will review the TIF Plan prior to City atloption. The proposed TIF District is a housing district under Minnesota Statutes, Section 469.174, Subtl. 11 of the TIF Act. Housing districts are a type of tax increment financing district that consist of a project intended for occupancy, in part, by persons or families of low and moderate income. Low and moderate income is defined in federal, state, and municipal legislation. A project does not qualify if more than 20% of the square footage of buildings that receive assistance from tax increments consist of commercial, retail or other nonresidential use. SPRINGSTED Page 1 Housing and Redeve/opment Authority of the City of Go/den Va/ley, Minnesota In addition, housing districts are subject to various income limitations and requirements for resitlential property. For owner occupied residential property,95%of the housing units must be initially purchased and occupied by intlividuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(fl of the Internal Revenue Code. For residential rental property, the property must satisfy the income requirements for a qualifietl residential rental project as defined in section 142(d)of the Internal Revenue Cotle. The TIF District meets the above qualifications for these reasons: 1. The planned improvements consist of the following: a. Approximately 45 total units,for which the following will apply: 0 45-unit service enriched affortlable housing rental units for adults with developmental disabilities will be occupied by persons with incomes no greater than 50%of county median income 2. At least 80%of the proposed development will be used for residential purposes. 3. The Authority will require in the development agreement that the income limitations for the rental units in the apartment building will apply for the duration of the TIF District. Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined in section 469.174, subd. II and 469.176 of the TIF Act. The cost of public improvements directly relatetl to the housing projects and the allocated administrative expenses of the Authority may be included in the cost of a housing project. The Authority anticipates using tax increment revenues to finance a portion of the extraordinary costs associated with providing the affordable housing units. Section F Duration of the TIF District and the Three Year Rule Housing districts may remain in existence 25 years from the date of receipt of the first tax increment. Modifications of this plan(see Section Z)shall not extend these limitations. The Authority reserves the right to allow the TIF District to remain in existence for the maximum duration allowed by law(projected to be through the year 2043), and anticipates the TIF District may be active for the maximum duration allowed (see Section P). All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Pursuant to Minnesota Statutes, Section 469.175, subd. 1(b), the Authority specifies 2018 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the Authority may collect increment from the district through December 31, 2043(see Section P). Section G Property to be Included in the TIF District The TIF District will consist of approximately 2.24 acres of land locatetl within the Project Area. A map showirig the approximate location of the TIF District is shown in Exhibit I. The TIF District will encompass an area that is a portion of two existing parcels for which the PID numbers are provitled below, additionally a legal description describing the new parcel that will comprise the TIF District is describetl below: SPRINGSTED Page 2 Housing and Redeve/opment Authority of the City of Golden Val/ey, Minnesota Parcel Number Legal Description* 31.118.21.32.0004 That part of the Northwest Quarter of the Southwest Quarter, Section 31,Township 118, Range 21 described as follows: Beginning at a point of the North line of the Southwest Quarter of said Section 31 distant 484 feet East from the Northwest corner of said Southwest Quarter;thence East along said North line a distance of 101 feet;thence South parallel with the West line of said Southwest Quarter to the center line of 6th Avenue North (old County Road No.6)as described in County Commissioners Proceedings dated April 27, 1925;thence Westerly along said center line to a line tlrawn South, parallel with the West line of said Southwest Quarter,from the point of beginning;thence North along the 31.118.21.32.0005 last described parallel line to the point of beginning. The West line of the above described tract of land is marketl by Judicial Landmarks set pursuant to Torrens Case No. 12495. That part of the Southwest Quarter of the Northwest Quarter, Section 31,Township 118, Range 21 described as follows: Beginning at a point of the South line of saitl Southwest Quarter of the Northwest Quarter distant 585 feet East from the Southwest corner of said Southwest Quarter of the Northwest Quarter;thence North, parallel with the West line of said Southwest Quarter of the Northwest Quarter to the North line of the South 16.50 feet of said Southwest Quarter of the Northwest Quarter;thence West along said North line to a point 836 feet West, measured along said North line,from the East line of said Southwest Quarter of the Northwest Quarter;thence South, parallel with said East line to said South line;thence East along said South line 110.75 feet, more or less,to a point of beginning. *These properties are in fhe process of being replatted. The legal descripfion idenfified reflecfs the boundaries of the portions of 31.118.21.32.0004 and 31.118.21.32.0005 that will be included in the TIF Disfrict following the replatting of the property. A new parcel number for fhe yet to be creafed parcel is not yet available. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The proposed development within the TIF District is expected to consist of approximately 45-unit service enriched affordable housing rental units for adults with developmental disabilities. The Authority anticipates using tax increment to finance eligible costs associated with development of the project as well as related administrative expenses.At least 20%(28 units)of the units will be occupied by residents with incomes at or below 50%of the area median income in order to comply with the statutory requirements of a Housing TIF District. The Authority anticipates using a portion of the increment to finance other eligible affordable housing projects within the City, as well as any related administrative costs of the district and projects. The Authority anticipates that construction will commence on the project in 2015 and be fully constructed by the end of 2016 and be 100% assessed and on the tax rolls as of January 2, 2017 for taxes payable in 2018. SPRINGSTED Page 3 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota At the time this document was prepared there were no signed construction contracts with regards to the above described development. The Authority intends to enter into a development agreement with a tleveloper for the housing development described in this section. In addition, the Authority may use Tax Increment from the TIF District in the future to provide financial assistance for the development of affordable housing within the Project which meets the income requirements set forth in Section 469.1761 of the Tax Increment Act. Section J Findings and Need for Tax Increment Financing In establishing the TIF District,the Authority makes the following findings: (1) The TIF District qualifies as a housing district; See Section E of this document for the reasons and facts supporting this finding, (2) The proposed development, in the opinion of the Authority, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development is expected to consist of approximately 45-units of service enriched affordable housing project for adults with developmental tlisabilities.The Authority's finding that the proposed development would be unlikely to occur solely through private investment within the reasonably foreseeable future is based on an analysis of the project pro forma and other material submitted to the Authority by the developer. These documents have intlicated that the reduction in annual revenues due to the lower rents associated with providing affordable housing units will result in returns that are below market,thereby making this housing development infeasible without public assistance. Therefore, the developer has indicated in the TIF application and in communications with the Authority that the development as proposed would not move forward without tax increment assistance. (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole;antl The reasons and facts supporting this fintling are that the Planning Commission of the City has found the TIF plan consistent with the general plan for development of the city as a whole and will generally complement antl serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the development of the Project Area by private enterprise. The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Buildin ac uisition $687,975 Bond/Note Interest 676,170 Administrative ex enses 151,571 Count Administrative ex enses 20,000 Total $1,535,716 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($1,535,716) is not increased. The SPRINGSTED Page 4 Housing and Redevelopment Authority of fhe City of Golden Valley, Minnesota Authority also reserves the right to fund any of the identified costs with any other legally available revenues, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Tax Increment revenue Net of OSA Reduction $1,535,716 Interest on invested funds 0 Other 0 Total $1,535,716 The Authority anticipates providing financial assistance to the proposed development through the use of a pay-as- you-go note. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred(see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds(as defined in the TIF Act)securetl in whole or part with tax increment from the TIF District is $1,535,716. The Authority currently plans to finance the improvements antl affordable housing costs in the form of one or more pay-as-you go revenue notes, but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceetl the maximum permittetl under Section 469.178,subd. 7 of the TIF Act. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2015, for taxes payable in 2016, is estimated to be$410,980. Upon establishment of the TIF District, and subsequent classification of property as rental property, it is estimated that the original net tax capacity of the TIF District will be approximately$3,082. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements;or (4) changes in property classification rates. SPRINGSTED Page 5 Housing and Redevelopment Authority of the City of Go/den Valley, Minnesota Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years,the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original tax capacity rate of the TIF District. At the time this document was prepared,the sum of all local tax rates that apply to the property in the TIF District,for taxes levietl in 2015 and payable in 2016, was not yet available. Then this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating tax increment generated by the TIF District, the final local tax rates for taxes levied in 2014 and payable in 2015, is 141.925%as shown below. 2014/2015 Taxinp Jurisdiction Local Tax Rate City of Goltlen Valley 54.626% Hennepin County 46.398% ISD#270 30.340% Other 10.561% Total 141.925% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the capturetl net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriatetl to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100°/a of the remaining tax increment generated by the TIF District for any of the following purposes: (1) Pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District(see Section T); (2) pay principal and interest on one or more pay-as-you-go notes,tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; SPRINGSTED Page 6 Housing and Redevelopment Authority of the City of Go/den Valley, Minnesota (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issuetl to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1 a;or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless the county board involvetl waives this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment derived from the TIF District must be used solely to finance the cost of housing projects (including administrative expenses and public improvement costs) as defined in Section 469.174, Subdivision 11 of the Tax Increment Act and subject to the requirements set forth in Section 469.1761 of the Tax Increment Act. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county,school district,or any other local unit of government or the State or federal government. Further, tax increments may not be usetl to finance: a commons area used as a public park; facilities used for social or recreational purposes (whether public or private); or publicly-ownetl facilities used for conference purposes; providetl that tax increment may be used for a privately owned conference facility, and for parking structures whether public or privately ownetl and whether or not they are ancillary to one of the othennrise prohibited uses described above. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment Beginning with the sixth year after certification of the TIF District, any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds;or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule As permittetl under Minnesota Statutes, Section 469.1763,subdivision 2(b)and subdivision 3(a)(5),any expenditures of increment from the TIF District to pay the cost of a "housing project" as defined in Minnesota Statutes, Section 469.174, subd. 11 will be treated as an expenditure within the district for the purposes of the "pooling rules" and the SPRINGSTED Page 7 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota "five year rule". The Authority does not currently anticipate that tax increments will be spent outside the TIF District (except allowable administrative expenses), but such expentlitures are expressly authorized in this TIF Plan. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural antl engineering services directly connectetl with the proposed development within the TIF District; (3) relocation benefits paid to, or services provitled for, persons or businesses residing or located within the TIF District; or (4) amounts used to pay interest on,fund a reserve for,or sell at a discount,tax increment bontls. Administrative expenses include amounts paid for services provided by bond counsel,fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of(a) 10%of the total tax increment expenditures authorized by the TIF Plan or(b) 10%of the total tax increments received by the District. Section U Limitation on Property Not Subject to Improvements- Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjustetl accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year,evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities,the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projectetl retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes,Section 469.175, Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $1,541,254. SPRINGSTED Page 8 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota 2. To the extent the proposed project in the Cornerstone Creek TIF District generates any public cost impacts on City provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not anticipate issuing general obligation tax increment bonds attributable to the District, but reserves the right to finance certain project costs with this method. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remainetl the same, is estimated to be$329,480. 4. The amount of tax increments over the life of the tlistrict that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$503,863. 5. No adtlitional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposetl for the district. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which builtling permits have been issued tluring the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project eontaining a housing district, more than 10%of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds(to which tax increment from the property is pledged),then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. The Authority anticipates entering into an agreement for development, but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with any person, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presentetl to the County or City Assessor who shall review the plans antl specifications for the improvements to be constructed, review the market value previously assigned to the lantl, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the Authority,County and School District. The Authority anticipates entering into an assessment agreement. SPRINGSTED Page 9 Housing and Redevelopment Authority of the City of Go/den Valley, Minnesota Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated capital and administrative costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District;and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF DistricYs original net tax capacity, or the Authority agrees that the TIF DistricYs original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Filing and Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue antl the Office of the State Auditor. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of lantl and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan,the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to ensure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; SPRINGSTED Page 10 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (c) if the TIF District is classified as an economic development tlistrict, then the original net tax capacity shall be increased by the amount of the annual atljustment factor; and (d) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section AB Financial Reporting and Disclosure Requirements The Authority will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. SPRINGSTED Page 11 Exhibit I MAP OF TAX INCREMENT FINANCING(Housing)DISTRICT Within Highway 55 West Redevelopment Project Area i sa� � ezo B3C � ' 850 I �; _ _ I ezo Q ProJect Area �Q _ — ,to ', �TIF Distnct �� m�5 �� ": � �C �os ssc cso sez seo s�s Q� � s�s > '� io. �,., 6�0 � ..Q �30 �,5 � L 6_0 'z: �, �8 �, � b �2 ,�,~ 660 711 fP18 � � � ,U�tv'.n1bt'L'�•:fl�Sb•�0�'SYGtiyCi ��. 659 .'0' .0,� , �� ' V o��Bd�b9y�24p''A�,`Sdy#1�a�t152yN� �.. U�162b b�0 6,�Atr�bb��t1�'AE�6b�.0 656 2�u^ 5� ,•v-L^' � � �' 209P08 pp� � � ve > 9?40 9140 '�,., ', �, t'� �� '�',. . �I e&15 ��. ��. � . , , '�.. gypD ' '. � O HX'i j �C`�: I 9326 9210 9� 9770 �`� 9� i � I ggpb a ' Golden Valley Rd ' _ ' � -- � _ �aSHwY 5 � s3�� '' -_ , s,ao scvo �' _. ( i 9300 913;", � 9;_0 } I Rd Z �rs I o��a�Nvey S�conea9e. ,� �, �I Nlem �s; �*5' _ > � � . I .. ...,,>.�Y�', Ots�� .. . 9037 ( s33 Z� S33 Q <3i �, BBtf � .....� I ...�. .._ _ ..L I 973f � �:, 123 .� �21 �.�� "- .� . � � �� 91�7 I 121 � - .... . ( Q. ---_ '� �7 B.. , � I 9N7 3i7 C "��.89.'B 8920 89t2��1}5 �� I '� . � .. ..�5 �� . . � ��, 1l�lally St � �8 ��}} /'9201 .. 9f13 339 � „6 � �JU , .+ �1��'� 3 #1�94�? �f ' W h'^`i r9• Yq1 �` . ,h � . � . �F.�ur. � I � — . . . . . _..__ .� Sowces� PmtDafe�7:28-'2C1i Tax Increment Financing (Housing) District �i��S"""""°�"�' e -crr�r6dain vnrky ro.ae uner la�r.a within Highway 55 West Redevelopment Project Area SPRINGSTED Page 12 Exhibit ll ��sumpdo� lieport � Cily of Golden VaNey,Mnnesofa Tax Increment Flnandng(Housing)Dlstrict Comerst�orK Creek Tax CreditHousing Project-4d Classbicatlon TIF Projectlons-S5�8M EMV Type of Tax hcremerrt Financ�g District Fbusing A�dmum Duratian aF TF District 25 years from 1st increment Projectied Cenification Request Dete � 09�01115 Decertifica�ion Date � 12f31143 (2S Yeers of hcr�ment) 2015r1016 Base Estimated�Aarket Value � �41Q980 O�inal t�Tax Capacily 53.06� /lss�ssmerrt/Ca�ectian Yeer 2016/2017 2017/2018 201812A19 2019� Base Estimabed I�rket Value s410,980 i410,980 s410,980 s410,980 Estim�ed hcre�se in Value-Wew Consfiicfion � 0 � 5,569,OaD � 5,569,020 � 5,5�,020 Tartal Estimated I�rket Value � 41(1,980 � 5,980,000 � 5,980,000 � 5,98�.000 Tafial Net Tmc Capac�y $3.082 544,850 344,85(l 544,850 City af Galden Valey 54.626% Hennepin Courrty �.398% ISD#270 30.340% OtF�er � 10_561% Local Ta�c CApecity Rat+e 141.9'�i96 201412015 Fiscal Disparities Cartributi�on From TF District 0.0000% Administratire RetainaQe P�ercent(ma�dmum= 1096) 10.0096 Poding Per�erR 0.00% Bands Nobe(Pay,As-Ya�{'�o) Bands D�ed NA Note D�ed 09I3Q/15 Band Rate NA Nnt,e R�e 5.0096 Bond Amourrt NA Note Amourn �687�,975 Pnesent Vek�e Date 8�Ra�te � 0�101/15 5_00%PV Amaurrt a769,785 Notes Prajections assume no future changes to cla�ssific�ian rates and currertt ta�c r�es rema�constard. Prajections ar�e based on a market velue of a5.98k1 Pr+elimnary value assumptions provided by Hennepin Courtty Assessar's office. Value assumption used is re�llective of combir�d buid�g and land value. Base value as.sump�tions is based on current value,and a 0%M1/�flator is assumed. Projections assume cammencment of construction�2015,with pr�ject completion in 2016, but a delay of first receipt to 2018 to coinc ide w ith i�l value_ Projections are based an un�s at 4D re�tai class rate. Counly Admn expenses assume 2%annual in�ion in cost�ate_ SPRINGSTED Page 13 Exhibit lll Projected Tax Increment Report City of Golden Valley,Minnesota Tax increment Financing(Housing)District Comerstone Creek Tax Credit Housing Project-4d Classification TIF Projections-s5.98M EMV Less: Relained Times: Less: Less: Less: Mnual Total Total Original Captured Tax Mnual State Aud. Subtolal County Admin. Mnual Period Market Nel Tax Net Tax Net Tax Capacity Gross Tax Deduction Net Tax Admin Retainage Net Ending Value Capacity Capaciry Capacity Rate Increment 0.360% Increment Retainage 10.00% Revenue 1 2 3 4 � 5 6 7 8 9 10 11 12 12/31/16 410,980 3,082 3,082 0 141.925% 0 0 0 0 0 0 12/31/17 410,980 3,082 3,082 0 141.925% 0 0 0 0 0 0 12/31/18 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 594 5,847 52,625 12/31/19 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 606 5,846 52,614 12/31/20 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 618 5,845 52,603 12/31/21 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 630 5,844 52,592 12/31/22 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 643 5,842 52,581 12/31/23 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 656 5,841 52,569 12/31/24 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 669 5,840 52,557 12/31/25 5,980,000 44,850 3,082 41,768 141.925°/ 59,279 213 59,066 682 5,838 52,546 12/31/26 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 696 5,837 52,533 12/31/27 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 710 5,836 52,520 12/31/28 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 724 5,834 52,508 12/31/29 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 739 5,833 52,494 12/31/30 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 753 5,831 52,482 12/31/31 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 768 5,830 52,468 12/31/32 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 784 5,828 52,454 12/31/33 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 799 5,827 52,440 12/31/34 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 815 5,825 52,426 12/31/35 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 832 5,823 52,411 12/31/36 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 848 5,822 52,396 12/31/37 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 865 5,820 52,381 12/31l38 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 883 5,818 52,365 12/31/39 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 900 5,817 52,349 12/31/40 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 918 5,815 52,333 12/31/41 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 937 5,813 52,316 12/31/42 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 955 5,811 52,300 12/3t/43 5,980,000 44,850 3,082 41,768 141.925% 59,279 213 59,066 975 5,809 52,282 $1,541,254 $5,538 $1,535,716' $20,001 $151,572 $1,364,145 SPRINGSTED Page 14 Exhibit IV Eatlmaled Yn d on OflKr Tu Jwfsdicb��s Re � Cly of Golden Va�ey,�nesoh � Tax Increment Flnane1n91H��9)Dlstrlct Cortkrsfone Creek Tu C�edR Housing ProJect-4d CI��Bcatlon � 7f ProJeetla�s-i5_88M E W VNihaR Prajectorl'F D'strict VNth P�ajectand TFDistrict Fnel Prajec6ed Hypatheti�,� 2014/2D15 � 201N1D15 Relained Pkw Fiypotl�eficel F1�rpaB�etieal TmcOenereted Taxehle " 201�15 Taotehle Cap4� Taxable At�us�ed Decre�se h by Refeined Tmdng Net Taoc Locai Net Tax Net Taot Net Tau Lacel Local CapWred Jurisdiction CaDeciN(1) T�c Ra6e CaPecilY(1) + ('.aDaciM = CaPac� Tax Ra�e Cl T�Ft�e C) PLT.C.C) CilyoiG�IdenValt,�r 32,153,216� 54.6�96 3Z153,216� 541,768 32,194,964 54.Ci,FiB96 0.0'71% 22,786 �nepin County 1,354,654,515� 4&3B8% 1,354,6r.�4.515 41,768 1,�4,896,283 4&38796 0.0019L 19,37'9 SSD#�270 96,251,343� 30_340'K 96�251,343 41.768 9fi�.93,111 30_32796 0.01396 12,66T oa�R> — ' �o.ss��c — a�,�se — �o.ss�x� — — Tatals 141_929% 141.840% 0.089f6 -sc.�wk�: nmepn,jectedRe�eneac.a�mredHetrazcapecnyame�oistriccwasnypomencarya�erewe�oeacna tt�e tmdng jurisdictions ehae.the res�wald be a larrer loc�tmc r�e(see I-ypaU�e4cel Hcfjusted T�c li�e ebae) which waWd produce the seme anourR af Tmces far eaeh t�ng jurisdi�tim. h such a case.ttie to1�bcal tex r�e wa/d decrease by 0_08596(see F ypotl�tical Decre�se in Local Taoc Re6e abae� The hypafheticel imc that Uie Refained Ceptured Net Tax Gepecily dthe TF District wa�d ge�ate is also shown abare Sta�nert 2 Since the prajected Refeined CepWred Net Tax Capecily dthe TF D6trict 6 nat ereieWe tothe imunp jurisdictions, ttien tfter8 k rlo YnpeC't on ta��s leried ar loCel ielt r�_ (1) Taxable r�et tax capactY=tofal net tau capacity-captured T1F-fiscal disparily cartribution.if appfice6le- R) rne:npact m v�ese tmdng pr�sdicriora is negigm�e since ttiey repe�rk a+Y 7_aa96 a me taml rmc raf� SPRINGSTED Page 15 Exhibit V Market Value Ana is R � Cityof Golden Valley� Mimesota � Tax Incnement F�anci�g(Flaising)District � Comerstone Creek Tax Credit Housing Project-4d Classification � T�Projections-55.98M EY1/ ASsumptions Pr+esent Value Date � 09/01/15 P_V_Rate-Gross T_L � 5_00% Increase in EMV With TF District � $5,569,020 Less=P_V of Gross Tax Increment 769,785 Subbotal $4,799,235 Less:Inctease in EMV Without T� 0 Diffenence 34,799,235 Annual Pr�esent Grass Tax Value� Yean c�rement 5_0096 1 � 2018 � 59,279 51,000 2 2019 � 59,279 48,571 3 2020 � 59,279 46,258 4 2021 � 59,279 44,055 5 2022 � 59,279 41,958 6 2023 � 59,279 39,960 7 2024 � 59,279 38,057 8 2025 � 59,279 36,244 9 2U26 � 59,279 34,519 10 2027 � 59,279 32,875 11 2028 � 59,279 31,309 12 2029 � 59,279 29,818 13 2U30 � 59,279 28,399 14 2U31 � 59,279 27,046 15 2032 � 59,279 25,758 16 2033 � 59,279 24,532 17 2034 � 59,279 23,364 18 2035 � 59,279 22,251 19 2036 � 59,279 21,191 20 2U37 � 59,279 20,182 21 2038 � 59,279 19,221 22 2039 � 59,279 18,306 23 2040 � 59,279 17,434 24 2041 � 59,279 16,604 25 2042 59,279 15,813 26 2043 59,279 15,060 51,541,254 5769,785 SPRINGSTED Exhibit VI �' Prolec�d Pir-�►s-You�o NoUe Report 1 c�qr arca�aen va�e�1�nne�at. T�i�aaneM F7�■nci9(Nwa�g�Disl�t Car��eC�ed[ibtC�Haudng Praject-�d C�caron 7f RoJee�ons-�1 EW Nole Dai: 09t�H5 Pble Rei: 5��% /rrlout i687.975 G1m��a li�p�id SanElb�uei lasi rlrlael AcCnlsd Wel B�s � Dde � Rlnc�d Hsest P 31 Dus risast t�eYa�e , O��B (11 � � [31 � [4) � (51 � A'a1 p1 171 687.973.OD �01H7 OAO QOD OAO �16,980.56 16,9��6 QOD 667,975.OD �01H7 ODO Q00 ODO 63,1999Ci 6i,1�93 Q� 661,975.� �01H8 O.AO Q00 OAD �,3�31 �,38931 Q� 687,975.� 09iOtH8 O.OD �,312.50 �,31250 97,558� T1,216.19 �,3129D 687,975.OD 0801H9 O.OD �,31250 �,31250 �,416S1 Q133A7 ffi,312.50 687,973.� m101H9 O.OD �,3�7.00 �,3Q7.00 79�32�6 .rii.�5116 �.307.OD 68�.975.OD 0801lA O.OD ��307.00 �,307AD 70�2{J83 �3.917+83 �,30/.OD 687.97ra0D OBIOU�! 0:00 �,301.50 8'a,30f ar0 61.117Z1 34,815J1 �,301.50 687,975i.OD �0121 OAO �,301-50 �'i.30150 �.�15.OB Z5,71359 75,301.9D 681.975.OD aB10i121 OAO ��9&00 �6A0 +Ct�1297 16,616.97 ��96.OD 687.97sOD 0209ft2 OAO �'+?�.00 �6AD 3:i.816+36 7.S1D.36 ��960D 687.975.OD ae�ovtz �.s�o.n a�.�tara 2r�oso a�at9.r3 om zs�o.m sec�� 01f�i 9,13D39 17.180.11 ��.50 17.18D.11 O:OD ��9D 677,2Td.84 �IWl13 9,�2b6 16�31.8b �,�84.50 16�Ci1JB5 0!00 �,�1,� 6Q,921.19 02D124 9,586.47 16b�98�03 ffi284ar0 16�698A3 0!OD ��61.90 fi68,,334T2 OBI01l�4 9,8�.13 16,468,37 �,278ar0 16,45837 OAO �,278�� W$514.�H �01l�i 14066b4 16Z1286 �.Z7850 1G,�12.86 ODO �� 638,41696 OBIW2ri 1Q311.78 15;J61.22 ��73AD 15961?2 ODO ffi�T3,OD fi�137.17 �Otf� 10;5BBSl 15.7Qi�3 �T3A0 15,700A3 0.00 ��T�,00 617,567.W � 10,8a.31 15,4�19 �'i266ar0 15r439.19 0.00 ��,50 606,7,QT9 �OV'D 11.OW99 15.168,51 ��B6a''0 15.16851 OAD ��Bfi9D 596�,6423D OBI01l� 11,36894 14,891.06 �,260A0 14r891 A6 0:00 ��OD 58�2Td36 �011� 11,65i.17 14,60&83 ��6DA0 14rB06J83 0!OD ��0.0D STL6�19 �O'I!ffi 11,93850 14,315.50 �Z54A0 14,315�0 0!00 ��54.� 5�,681.M Ob01f19 12�3696 14A17.04 ��rtAO 14017D4 ODO ��54� 518,441.T3 OB101l19 1ZSi698 13.711.12 ��it7!00 13,711.12 OAO �p.00 536,908.86 0�01ld0 1�81828 13.397-72 �'iyp!00 13.�7.T2 ODO �47•� a''Zi.O�a'7 OBI01ldD 13,,16451 13076��9 ��41A0 13,W6A9 0.00 �41_OD 50Bi,896.06 �0tl31 13,�i�62 12,747.38 �,241A0 1�747.38 0.00 �41-OD �96,�W1.44 �IM131 13,8Zi.96 12,41Q04 75,434A0 12410A4 ODO �140D �82.577-48 �10'Il32 14.18956 12.064.44 �'+�34.00 12A6444 ODD �Z31�OD �4W.92 �01l32 14,51G90 11.71020 ��?7A0 11,710� 0:00 �,�9-OD �153,891.12 �01ld3 1�,,879.72 11,347.28 8's�27A0 11�4728 ODO �,2a-OD 438,011.dD �01l33 15,214.71 10�75.29 �AO 10�29 0:00 ffi 2�OD 4Zi`7'B6.B9 0801l34 15,Gt593 10�94.17 �.27DA0 10,591.17 0.00 �,�Q00 �08,1,0:� 09i01l34 16,009A8 10�Ofi5'L ffir213.00 t0�i.52 0.00 ��'13.00 3�131.38 Oa01ld6 1G�OB.72 9,Bai28 ffi�13D0 9r80Gi28 ODO �2130D 375.721� �O'Il�S 16,812A6 9,3.90.04 8'i�ar0 9,390A4 0.00 �'i�06.9D 358,90� am�o�r�c n,z�n a.�r3 zr�o6�o a�rs.r3 0:0o zs�oe�o ��.�s.� OBI01fd6 17,6B6A9 8,541.91 �.198.00 8,54191 O,DD �.198.OD 32�.Q�.34 02�D1f37 18,OIIA9 8,1�.51 �.19BA0 8,10QS1 0:00 �,198.OD 306�9?2� �101l37 18,542.�3 7�618�07 �i,1�ar0 7�6�BA7 0!00 �,1�� 281,3�.42 0201ld8 19,00698 7.184.51 �,19D50 7.184.51 OAO �,1�.� �374_�i OBIVtl�B 19,473.14 6,7�.36 �,182ar0 6,TOB.36 0.00 �,18250 248,901?9 �O'ifd9 19,98997 622253 ai,182ar0 6,222.53 0.00 �,1829D 2�.941.32 �10'Il3B 2Q,�97 S,Tli53 �,174.50 5,7Zi53 0.00 �,171.5D 208,�� 01N0 2Q9GL24 5�'12.26 �,174'.iD 5�1226 0.00 ffi,17� 187,5ffi11 �IWNO 21.47830 4,C�,2D �i,1�.50 4f8820 0:00 �i,19i.50 166,OIa81 �0'U41 2z0152.5 4,15125 �,166.b0 4.15125 ODD �,1�'i� 111,Qi1�� 09i0'I/41 22,�1-14 3,SOQ86 �,158A0 3�60D.86 ODD �,158�OD 121.477.42 02�09/42 23,121:06 3AC�'i94 �.158A0 3piCi694 0!OD �.158.OD 98r36�a� �01/42 7.i,691:OB 2.�-91 �.1�:00 2,/5B91 OAO �,1�OD 7�,66�9 OaQ1M3 24,�3.37 1rBfi�'i63 �.1�A0 1rBB6b3 OAO �,150.0D �q381.9D �101H3 24r881,IEi 1�.56 �,141 AO 1�59'.i6 0�0 �'i,141.00 Z5�500!45 �01M4 Z5�500,�5 637.51 8'i.13796 631b1 OAO �,13756 Q� �87,975 iQ6.1Bti.96 S1,3G4.14196 s1.180,63699 SfiO4.,6895 s1,3G4.14156 9u�a Ta�t i1Clae�t 304 Tdr N�t Rwaws SI�64.145.OD SPRINGSTED Redevelopment Plan for Highway 55 West Redevelopment Area Gofden Valley, Minnesota Golden Valley Housing and Redevelopment Authority Approval:October 9,2012 Planning Commission Review: Approved by the City Council: f TABLE OF CONTENTS Pa e s Introdudian.........................................................................................................................3 Background..........................................................................................................................3 PubiicImprovements...........................................................................................................3 Statement of Need and Pubiic Purpose,Statutory Autharization......................................4 5tatemerrtof Objectives......................................................................................................4 ItemizedGoals and Objectives............................................................................................5 Policies ................................................................................................................................6 Boundaries of the Proje�Area and Redevelopment�pportunitie�es..................................7 Definitians............................................................................................................................8 Administration of Redevelopment Project..........................................................................9 Maintenanceand Operations..............................................................................................9 Paymentof Pubiic Casts..................................................................................................9 Property Acquisitfan and Proposed Reuse.....................................................................9 Relocation .....................................................................................................................10 Environmental Controls; Land Use Regulations............................................................10 Parkand Open Space to be Created.............................................................................10 Amendments.................................................................................................................10 Mapof the Project Area....................................................................................................11 -II - Introduction In the 1970s the City took the initiative to create a mbced-use,walkable downtown centered at the historic village crossroads at Golden Valley Road and Winnetka Avenue.This area has rnany community resources,induding retail destinations,restaurants,the library,the post office,and City Hall. Recently interest has grown in cannecting the area west af Boone Avenue to this urban core. The goal is to make better and safer connections for both pedestrians and vehicles and provide better access to transit stops. it is anticipated that pubiic improvemerrts that improve vehicle and pedestrian safety wtll promote private redevelopment in the area. Recent rezoning of two pa�cels at 9220 and 9130 Olson Memoriai Highway to high-density housing is the immediate impetus to estabiish a new HJghway 5S West Renewa!and Renovotion Area (Project Area).A developer has Qroposed the constructio�of a 142-unit apartment building,adding many new residents to the area and spurri�g the need to create improved transportation linlcages. This Plan wil)define the geograpfiic area of proposed improvements,outline existing conditions, identify posstble improvements,and set goals and objectives and policies that wil)guide p�ojects as they are implemented.T#�e proposed Renewal and Renavation Area includes parcels on the north and south side of Galden Valley Road west of Oecatur Avenue North to 9400 Golden Valley Raad and parcels an the south side of 7�'Avenue North between Boone Avenue Nerth and Decatur Avenue North(See Map,page 11). Bacicground The Project Area has a wide range of land uses and building types,including 24 parcels and 21 buildings,ftom 12 to 86 years old.When parcels in the Project Area were originally developed, Golden Valley Road served as the primary east-west arterial roadway in the area,which ariginally contained farmsteads. In fact,a farmhouse built in 1928 stil!exists on the north side of Golden Valley Road.Commercial Uses,which inciuded a bowling alley, restaurarrts and office uses developed over time.Single and muRtfamily housing now coexist with the commercial uses. When Olson Memoriai Highway(Highway 55)was constructed in the 1960s, some of the existing uses ended up with frontage on both Hi�hway 55 and Golden Valley Road and the iocal street system was truncated.The unusual shaped lots,highway orientation and truncated Iocal street system create a challenge for developmer�t. The Valiey Square Redevelopment Area east of the Project Area has been redeveloped wlth a mix of uses,but has a more urban pedestrian orientation that helps integrate the uses.The goal of the Project Area is to develop public improvemeryts that will support the cur�ent range af land uses and encourage new development, including new high-density residential housing now proposed for the area. Public lmprovement�s Public improvements proposed in the area include improveme�ts to the Nighway 55 access/exit to Decatur Avenue North,sidewalks and lighting to improve pedestrian safety,bu�ial of overhead etectrical lines,addition of regional storm water facillties,and sanitary sewer lining.These improvements are aimed to assist�sidents from the proposed 142-unit apartment move safely in 3 the area and to foster further development in the area by creating a safe neighborhood environment. Pedestrtan safety will also support walking prog�ams promoted by existing locai businesses and connect�esidents and employees of businesses west of Boone Avenue to transit stops on Wisconsin Avenue or Winnetka Avenue. Statement of Need and Pubiic Purpose,Statutory Authorization 7he Housing and Redevelopment Authority(HRA)flnds there is a need for development within the City and the Project Area in order to provide employment and housing opportunities,to improve the Iocal tax base,and#o imprave the general economy of the City and the State.Tl�e economic secuNty of the people in the City depends upon proper development of property that meets any one of a number of conditions,including properties with values too law to pay for the public services required or rendered and propertfes where lack of use or improper use has�esulted in stagnant o�unproductive land that could atherwise contribute to the public health,safety,and welfare. The HRA fiinds that in many cases,such property cannot be develo�ed without public participation and assistance in various forms,including property acquisition and/or write-duwn;proper planning; the financing of development costs associatet!with clearance,grading,and soils correction;and the making of various otfier public and private improvements necessary fer development. In cases where the development of property c�nnot be done by private enterprise alone,the HRA believes it to be in the public interest to consider the exercise of its powers,to advance and spend public money, and to provide the means and impetus for such development. The HRA finds tfiat in certain cases, properry withtn the Project Area wouid or may not be available for development without the specific flnancial aid to be sought,that the Redevelopment Plan will afford maximum opportunity,consis#ent with the needs of the City as a who�e,for the development of the Project Area by private enterprise,and that the Redevelopmerrt Plan conforms to tfie general plan for the development of the Ciiy as a whole. Overall Objectives The HRA seeks to achieve one or more of the following objettives with respect to the Project Area, as the Autho�ity may deem appropriate and necessary: • promote and secure the prompt development of property wkhin the Project Area,such property which is not now in its most productive use,in a manner consistent with the Comprehensive Plan cf the City,thus realizing Comprehensive Plan,land use,and tax base goafs • assist developmeM in the Projed Area through the acquisition or write-down of certain interests in property which is reot now in productive use or in ns highest and best use,to make or defray the cost of soil corrections or site impravements on said properly,and to construct or reimburse for the cons�truction of public improvements and other facilities on or for the benefit af said property,thereby promoting and securing the development of other tand within the Project Area 4 • secure the increase and availabillty of rerrtal housing property for individuals and famllies of low to maderate income within the ProJect Area • secure the increase of industrial and cammercial property subjed to taxatfon within the Project Area � promote and secure additional empioyment opportunities withln the City and to prevent the loss of existing employment opportunities,thereby preventing the loss of valuable human resources • Ta provide funding for an ongoing development strategy and to priaritize the use of available resources • implement and revise fram time to time,as may be deemed necessary or desirable,a consolidated and unified Redevelopment Plan and to finance the associated developmeM costs on an area-wide basis • employ any of the powers of the Autho�ity fo�the benefit of the Project Area in sach cases and upon such terms as the Authorfty may deem approprlate • canstnact or acquire facilities deemed desirable for the development of the Project Area Itemized Goals and Objectives To achieve its misslan of structured redevelopment,this Plan has identified six goals with related objectives to encourage cohesive planning and structured renewal within the area.!t then outlines policies that wEll help to achieve the goais and abjectives. Goal 1—lmprove vehide and pedestHan acc�ess Objectives • Improved acxess/exit from Highway 5S to Decatur Avenue North • Added pedest�ian and non-motorized transportation facilities • Improved connectians to the Luce Line Regio�al Trail Goai 2—Redevelop obsolete properties Ob)ecdves � Blighted,functionally obsolete,and/ot economically unsustai�able buildings removed • New uses oompatible with existing uses • Maximized devetopmerrt density alang Highway 55 Goai 3—Create jobs and Iife-cycle housing Objectires • Inc�eased high-paying jobs � Housing stock that is maintained or improved • Higher density housing 5 • Affordabie,zero crime, housing • Commerciai uses that serve the communtty Goal 4—Require desig�that is austainable and aesthetically pl�sing Objectives • Enhanced community identity through features that reflect Golden Valley � Visually attractive development that complements its su�round�gs • Buildings constructed wlth envlronmentally sustainable'green building'practices (development that meets environmental rxite�ia set forth by Leadership in Energy and Environmental Design (LEED)and the United States Departrreent of Energy) • Active living criteria included in design • Undergrounded utilities • Signage and wayfinding features ta connect the area to downtown Golden Valley and the Luce Line Trail Goal 5—Protect the environmerrt o6jecctves • Wetlands that are protected and enhanced � Land free of soil and wetland contaminatian • Arborous environments • Natural features retafned and native vegetation(re)established • Gosi 6—Maintain a regionaf framework oaject�ves • Growth compatible wfth the Metropolitan Council development framework • Public infrastructure designed tn cooperation with Hennepin County and the Minnesota Department cf Transportatfon • Participation in grant programs available through Hennepin County,the Metropolitan Council and other agencies • A positive relationship with surrounding communities and governmental agencies • Continued participation in caoperative treftic managem�t strategies • Improved transit options Policies Land Use The City will study planned land uses to determine the need or desirab�lity of individual parcel or area-wide comprehensive plan or zoning arr�endments to accommodate desired land uses, The City and HRA will assure that its review processes,zoning,and building regulatfons wiil promote desired development projects. The City wiU assure that new uses in the redevelopment area are compatible with existing development and the C'rt�s I.and Use Plan. 6 The C'ity and HRA wili review existing properties in the area to consider their long term viability andJor options for afternative uses. Land use plans will promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council's regiona)growth strategy. Financtng The City and HRA will identify criterla tfl targe#redevelopment funds such as tax increment flnancing,tax abatements,Livable Communities,Community Development Biock Grants and other funding made available by the Legislature or other agencies or governmental units. The City and HRA will consider providing public assistance to redevelopment projects that serve a substantlal public purpose,remove blight,or mitigate contaminatien. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be pafred wlth other funding aptions such as assessments, based on the Golden Valley Special Assessment Policy. The City will cansider franchise fees and utility surcharges to undervv�ite the cost of utility and infrastructure upgrades. Design and Environmer�ta!Standanls The C'�ty wili promote best practices to meet the highest environmental standards. The City a�d HRA will identify approaches and/or incentives to promote a corridor beautification program.This program will include both public and private componerits. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates of this plan. Transportation The City wii!work wfth Metropol'�tan Transft to monitor transportation needs of area residents and workers and identify ways to improve transportation services,including improving transit routes and working with area businesses to devebp transportation managemerrt plans. Boundaries of the Project Area and Redevelopmer�t Opportun(tles The property within the City which canstitutes the Project Area includes#he property contained within the boundaries described below and is iNustrated on the attached map. Area �► South of Golden Valiey Road, north of Highway 55,and west of Decatur Avenue North This area currerrtly cantains several small office buildings,the former bowling alley,and Valvoline Rapid Dil Change.This area is very visible from Highway 55.The Tiburon,a six-story, 142-unit apartment building is proposed to be constructed on the slte of the former bowling alley and the 7 adjacerrt office building,which were recently rexoned to High-Dens'rty Residential.The remainder of the Area 1A could remain commercial or move to residentiat uses. Area iB South of Goiden Valley Road and north of Highway 55,where it exits to Highway 169. This area is located directly north ofthe Highway 169/Highway 55 interchange and is zoned Commercial. National Camera Exchange 1s currently located at this site. It has relocated from another site in the Area and may wish to further expand in the future. Area 2 North vf Golden Valley Road from Highway 169,east hsf�ray to Decatur Avenue North Two office buildings,two single family homes,and a five-building apartment campiex(Trentwood, 54 units)are located in this area.Trentwood is zoned medlum-density residential and the rest of the parcels a�e zoned Business and Professional Offices.The easterly ofRce building and single family homes are currently listed for sale.if the parcels are joined and redeveloped,residentiai or institutional uses on those properties v�rould complement the existing and prcposed�esidentiai development in the area.Alternately,if redeveloped as Business and Professional Offices,the site wouW relate to the afFice use to the west and north. Ar�3 North of Golden Valley Road from Decatur Ave�ue North,west to the mid-block This area includes Red Lobster Restaurant a�►d two fast food restaurants and is zoned Commercial. While this area is appropriate for cvntinued long-term commerclal and retail use,it may develop more densely in the future if the currerrt uses end. Goiden Valley Road serves as the frontage�oad for Highway 55 in this area.The road curreMly ends at Decatur Avenue North,with frontage road signage directing drivers north on Decatur Avenue and east on 7�'Avenue.It may be beneficial to realign the frontage road in this area to provide a continuous roadway and eliminate confusing turning movemer�ts.The current access to Highway 55 at Decatu�does not provide standard,save vehicular movement. Area 4 Nath of Highway 55 west af Boone Avenue North,south of 7�'Avenue,�nd east of Decatur Avenue North This area contains two restaurants,an automotive service shop,and a vacant parcel,all of which are zoned Commercial.With Its higfiway visibility and proximity to the Boone Avenue/Highway 55 intersection,this area could redevelop lnta more intense uses,particularly if a number of the parcels are consolidated. Definitions The terms defined in this section have the meanings given herein,uniess the context in which they are used indicates a difFerent meaning: "Autt�o�itv"means the Housing and Redevelopment Authority of the City of Golden Vailey. " i,�"means the City of Golden Valley,Minnesota, aiso refened to as a RMun(ciaalit�'. 8 "Citv Council"means the Uty Council of the City. "Coun "means He�nepin Cour�ty, Minnesota. "Governina Bodv"means the Board of Commissioners of the Authority. "HRA Act"means the Minnesota Municipa)Housing and Redevelopment Act,Minnesota Statutes, Sections 469.001 through 469.047,both incluslve. "Land Use Reaulations"means afl federal,state and local laws,rules, regulations,ordinances and plans relating to or governing the use ar development of land in the Project Area,including but not limited to environmental,piatting,zaning and building code laws,regulations and ordinances. "Proiect Area"means the geographic area of the Highway 55 West Redevelopment Project Area. "Public Costs"means the casts of land acquisition,public and site improvements,repayment of debt service on tax increment bonds,and other eNgible costs as set forth in the Redevelopment Plan and Tax increment Financing Plan(s). "Redevelooment Plan"means the Redevelopment Plan fo�the Project Area. "State" means the State of Minnesota. "TIF Act"means Minnesota Statutes,Sectians 459.174 through 469.179, both inclusive. "TfF istrict" means any tax increment financing district p�esently established or to be established in the future in the Project Area. "TIF Plan"means the respective tax increment flnancing plan for each TIF district located within the P�oject Area. Administratfon of Redevelopment Project Malntenance and Operations Maintenance and operation of the Project Area will be the responsibility of the HRA Director, who shall serve as administratar of the Pro}ect At�ea. Each yea�the administrator will submit to the Governing Body the maintenance and operation budget for the following year. The adml�istrator will administer the Redevelopment Plan pursuant to the provisians of the HRA Act,provided,however,that such powers may only be exercised at the direction of the Gaverning Body. No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Governing Bady. Payme�nt of Ptd��c C�sts It is anticipated that the Publtc Costs of the Project Area will be paid primarily from tax increments or proceeds of tax incremerit bonds.Such costs are identified in the TIF Plan(s)fo�the corresponding TIF District(sj located within the Project Area. The Authority reserves the right te 9 use other sources of revenue legally applicabie to the Project Area to pay for such Public Costs inciuding, but not limited to,special assessments,federal or state funds,and investment income. Properly Aoquisitian and Proposed Reuse The HRA may acquire property,or appropriate interest therein,within the ProJect Area as it deems necessary or desi�able to assist in the implementatian of the Redevelopment Plan. The Redevelopment Pfan contemplates that the HRA may acqufre property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property,the Governing Body wlll reQuire the execution of a binding devebprnent agreement with respect thereto and evidenoe that tax increments or other funds will be available to repay the Public Costs associated wlth the proposed acquisition. It is the intent of the HRA to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the HRA ls a party. Relocation Any person or business that is displaced as a resuft of the Redevelopment Plan wili be relocated in accordance with the provisions of the HRA Ad and other applicable state law. En�ironmental Controis;Land Use Regulations All HRA actions,public improvemerrts,and private develapment shall be carried out in a manner consistent with existing environmentai controls and all applicable l.and Use Regulations. Park and Open Spaoe to be Gested Park and open space created within the Project Area wil)be done so in accordance with the zoning and platting ordinances of the City. Amendments The HRA reserves the right to alter and amend the Redevelopment Plan subject to the provisions of state law regulating such action. 10 � o � o o ^ � �� $ LL � � 0 0 � �, a �� ,,��'(' �;i.��%�: � _._..---� — � a ^ � o Q ^ � �g^ R � � � cS � �RR m '� �`�. r�� o `3 84 _ � � e��p �S�� p�p � N O .,w�V �7 n n � � �D ? � N � O �,a,_ � $ � R el. ? p ? p O � an� .�n;�� 'o �, � � �:� an� .�n��a '� � Q � a �, � N 1w"a q a �� O oD ty � N Of p � m N� � p � � pNi o`""°° ^ O O � J � � � � � S r�'� � N �+ � � � ` v� � � '�'� � v o � � � � v v m � 0 � o a � � °° �, � anbr u � u� a � � � � a 3 �0 N �,1�,,,, Q Q � � � h L � � � � � � � � � w � � � � h � � p � � o a � p � � ; � � s a 01 � Q �' � �► M � Ob ,v � � b � N �' � �� /+� � b � ir. O � �{ � b � � `� � i�^ � O Lt O �' � � � N � p�i O�i ONi �p±'�'_ ,� O �� r"w �fi �D � 1� N h � � h s y� p� a A,1� ^O N •,,^."�+�� O p � O �,..,r O O � O� � � M O� <'NI rn 0 O p � ^ � Oi N b A SS��Lt��. 11