EDA A-1. Establishing TIF District 10
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
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Phone: 952.227.1100
Fax: 952.227.1110
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Web Site
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A
-,
TO:
Todd Gerhardt, Executive Director
Laurie Hokkanen, Assistant Executive Director~
FROM:
DATE:
April 2, 2010 6~ ;
Resolutions Approving the Elimination of Parcels from TIF #4,
Adopting a Modification to the Redevelopment Plan for the
Downtown Chanhassen Redevelopment Project Area, and
Establishing TIF District #10.
SUBJ:
PROPOSED MOTION
The EDA adopts the attached Resolutions (2).
BACKGROUND
As a part of the development of Chanhassen Station, the City signed a
redevelopment agreement with Bloomberg Companies. At that time we agreed to
create a Tax Increment Financing District (TIF). The purpose of the District is to
allow Bloomberg Companies to offset their Assessments for the road and utility
improvements occurring to facilitate Chanhassen Station and further development
of the property surrounding the Chanhassen Dinner Theatre.
In order to qualify as a redevelopment district, the City engaged LHB Architects
to determine qualifications. LHB did declare the parcels within the TIF to be
blighted. A copy of the full report is available upon request.
The first Resolution approves the elimination of parcels from TIF #4. When the
area was re-platted, a small portion of three of the new parcels are in TIF #4. It is
our desire to remove those parcels from TIF #4 and include them with TIF #10.
Staff estimates that this change will result in a loss of revenue to TIF #4 of
approximately 10%, however TIF #4 will still have sufficient revenue to pay its
debt.
The second Resolution approves a modification to the Redevelopment Plan for
the Downtown Chanhassen Redevelopment Project Area, and Establishes TIF
District #10.
Attachment #1: Tax Increment Financing District Overview, provides a summary
of the terms of the Tax IncrementFinancing District.
G:\Admin\LH\TIF\TIF #10 Chan Station\EDA Staff Report, adopt TIF 1O.doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
If the TIP District is implemented, the next step would be to enter into a Contract
for Private Redevelopment with Bloomberg Companies.
RECCOMENDA TION
Staff reccomends the EDA adopt the attached Resolutions.
ATTACHMENTS
1. Tax Increment Financing District Overview, prepared by Ehlers (see
Council Item)
2. Modification to the Redevelopment Plan for the Downtown
Redevelopment Project Area and the Modificacation to the Tax Increment
Financing Plan for the Tax Increment District No.4 and the Tax
Increment Financing Plan for the establishment of Tax Increment District
No. 10, prepared by Ehlers (see Council Item)
3. Resolution Adopting a Modification to the Redevelopment Plan for the
Downtown Chanhassen Redevelopment Project Area; and Establishing
Tax Increment Financing District No. 10 Therein Establishing a Tax
Increment Financing Plan Therefor.
4. Resolution Approving the Elimination of Parcels from Tax Increment
Financing District No.4, Located Within the Downtown Chanhassen
Redevelopment Project Area, in the City of Chanhassen.
G:\Admin\lH\TIF\TIF #10 Chan Station\EDA Staff Report, adopt TIF 10.doc
CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY
CITy OF CHANlIASSEN
CARVER AND HENNEPIN COUNTIES
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR THE DOWNTOWN CHANHASSEN REDEVELOPMENT PROJECT
AREA; ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 10
THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Chanhassen Economic Development Authority (the "EDA") and the City of Chanhassen (the "City") that
the EDA adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for
the Downtown Chanhassen Redevelopment Project Area (the "Project Area") and establish Tax Increment
Financing District No. 10 (the "District") and adopt a Tax Increment Financing Plan (the "TIP Plan")
therefor (the Redevelopment Plan Modification and the TIP Plan are referred to collectively herein as the
"Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections
469.090 to 469.1082, and Sections 469.174 to 469.1799, inclusive, as amended (the "Act"), all as
reflected in the Plans and presented for the Board's consideration; and
WHEREAS, the EDA has investigated the facts relating to the Plans and has caused the Plans to
be prepared; and
WHEREAS, the EDA has performed all actions required by law to be performed prior to the
adoption of the Plans. The EDA has also requested the City Planning Commission to provide for review
of and written comment on the Plans and that the Council schedule a public hearing on the Plans upon
published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
1. The EDA hereby finds that the District is in the public interest and is a "redevelopment
district" under Minnesota Statutes, Section 469.174, Subd. 10 (a)(1), and finds that the adoption of the
proposed Plans conform in all respects to the requirements of the Act and will help fulfill a need to
develop an area of the State of Minnesota which is already built up and that the adoption of the proposed
Plans will help in the preservation and enhancement of the tax base of the City and the State and thereby
serves a public purpose.
2. The EDA further finds that the Plans will afford maximum opportunity, consistent with
the sound needs for the City as a whole, for the development or redevelopment of the Project Area by
private enterprise in that the intent is to provide only that public assistance necessary to make the private
developments financially feasible.
3. The boundaries of the Project Area are not being expanded.
4. The reasons and facts supporting the findings in this resolution are described in the Plans.
5. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as presented to the EDA on this date, are hereby approved, established and adopted
and shall be placed on file in the office of the City Manager.
6. Upon approval of the Plans by the City Council, the staff, the EDA's advisors and legal
counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose
to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions,
documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval
of any project or a Development Agreement with any developer.
7. Upon approval of the Plans by the City Council, the City Manager is authorized and
directed to forward a copy of the Plans to the Minnesota Department of Revenue and the Office of the
State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a.
8. The City Manager is authorized and directed to forward a copy of the Plans to the Carver
County Auditor and request that the Auditor certify the original tax capacity of the District as described in
the Plans, all in accordance with Minnesota Statutes 469.177.
Approved by the Board of Commissioners of the Chanhassen Economic Development Authority
this 12th day of April, 2010.
Thomas A. Furlong, Chair
ATTEST:
Todd Gerhardt, Executive Director
CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM TAX
INCREMENT FINANCING DISTRICT NO. 4 (CARVER COUNTY TIF
DISTRICT NO. 28), LOCATED WITHIN THE DOWNTOWN CHANHASSEN
REDEVELOPMENT PROJECT AREA, IN THE CITY OF CHANHASSEN.
WHEREAS, on May 22, 1995, the City of Chanhassen (the "City) established Tax Increment
Financing District No.4 (the "TIP District") within its the Downtown Chanhassen Redevelopment Project
Area; and
WHEREAS, the Chanhassen Economic Development Authority (the "EDA") IS the
administrative authority for the TIP District; and
WHEREAS, the TIP District, in part, included the following parcel numbers, which were
previously certified in the TIP District (the "Parcels"):
Old Parcel Numbers:
25-0130700
25-2830030
The old parcel numbers have been retired due to a new plat and split.
New Parcel Numbers:
25-1680040
25-1680060
25-2830031
WHEREAS, the EDA desires by this resolution to cause the elimination of the Parcels from the
TIP District thereby reducing the size of the TIP District; and
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
EDA as follows:
1. The tax increment financing plan ("TIP Plan") for the TIP District is hereby modified to
remove the Parcels from the TIP District, effective for taxes payable in 2011.
2. Upon approval of a similar resolution by the City, staff are authorized and directed to
attach a copy of this resolution to the TIP Plan for the TIP District in City files, file a copy of this
resolution with Carver County along with instructions to adjust the records for the TIP District
accordingly, and file a copy of the resolution with the Commissioner of Revenue and the Office of the
State Auditor.
Approved by the Board of Commissioners of the Chanhassen Economic Development Authority
this 12th day of April, 2010.
Thomas A. Furlong, Chair
ATTEST:
Todd Gerhardt, Executive Director