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5. Development Project for Development District No. 3 and a Tax Increment Financing Plan for Tax Increment District No. 3-1� -i i CITY OF S� CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 0 CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 Action a Ad i i s 6t TO: Don Ashworth, City Manager by ny m n wf Modi1le R*ct Submitted to CommissW FROM: Todd Gerhardt, Assistant City Manager Date Submitted to council DATE: June 3, 1994 3 SUBJ: Continuation of Public Hearing Regarding the Approval of Development District No. 3 and Tax Increment Financing District No. 3 -1 At our last city council meeting, this item was tabled until June 13, 1994 to allow the DataSery Company additional time to review the proposed Tax Increment Plan (see Attachment #1). RECOMMENDATION CO NDATION ' Staff recommends that the city council reopen the public hearing to ask for citizen comments and close the public hearing after comments have been heard. If the city council finds that the program for Development District No.3 and the plan for Tax Increment Financing Plan No. 3 -1 is in accordance with the overall development of the community, staff recommends that the council adopt the attached resolution. Attachments 1. City Council minutes dated May 23, 1994 2. Staff report dated May 19, 1994 with attachments C MEMORANDUM City Council Meeting - May 23, 19( 4 ' Roger Knutson: It's item 3. Mayor Chmiel: Yeah, that's what we're going to go on right now. PUBLIC HEARING: PREPARATION OF A DEVELOPMENT PROJECT FOR DEVELOPMENT DISTRICT #3 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT #3 -1. ' Public Present: Name Address Jim Paulette DataSery Incorporated ' Todd Gerhardt: Mr. Mayor, Honorable Council. What I'd like to do is give a short order overview of the creation of the new Development District #3 and Tax Increment District #3- 1 ... show the district boundaries. ' You'll notice that most of the district is located on the Banta Corporation property and the DataSery property. And then the remaining district falls north along State Highway 101. Included in the plan, City Council must find the creation of this district provides employment opportunities with the city, improves the city's overall tax base, both from the city and state level. It also gives you opportunities to implement relative portions of the ' Highway 5 corridor plan. Completion. The City's completion of Dell Road south of Highway 5 consistent with the planning and reconstruction of State Highway 101. Both the trail system and reconstruction of the road. That concludes my portion... ' Mayor Chmiel: As I mentioned previously, this is a public hearing and those wishing to address the issue this evening, please come up and state your name and your address and concerns that you may have or questions that you have that you'd like some answers to. So with that the public hearing is open. Please come forward. Jim Paulette: Mr. Mayor, members of the Council. My name is Jim Paulette. I'm ... manager representing DataSery Incorporated. We're included. We own 60 acres of property which is included in the proposed ' district. You may recall seeing us last Wednesday here at your informal meeting and we're also interested in a land use study which involves our property also. I just wanted to come here tonight to indicate that Todd Gerhardt did call me on April 4th to inform me that the City was interested in establishing the tax increment ' financing district which included our property. On April 11th we sent a letter to Todd indicating that we had some reservations about the project and that upon completion of a land use study that we are involved in now, that we would be interested in holding further discussions with the city about the establishment of the district. On April 19th Todd called again and we talked some more about the concept. And however we did not receive ' a copy of the proposal or the document until today. So we haven't had a chance to review the document yet. And we would like to request that the Council table this proposal until DataSery has had the opportunity to review the document and ideally until we've had a chance to respond formally to the Highway 5 corridor study. t If you have any questions. Mayor Chmiel: Are there any questions? ' Councilman Mason: Not at this time. City Council Meeting - May 23, 1994 Councilwoman Dockendorf: Well I have one Mr. Paulette. Last time seeing you was several months ago, I think. Jim Paulette: Yes. Councilwoman Dockendorf: And you were concerned about things moving too quickly and DataSery didn't have any plans yet. Have you come any further in your decision making about what exactly you want to do with that land? Jim Paulette: Yes we have. We've just presented a proposal that was put together by Ryan Construction and RLK Associates to our Executive Staff. And we are in the process of putting together a formal response to the city, which I suspect we'll have completed by the time you vote on the corridor study itself. Councilwoman Dockendorf: In terms of an expansion, is that what you're looking at? Jim Paulette: What we're looking at, as far as the study is concerned. Councilwoman Dockendorf: As far as what you want to do with your property. Jim Paulette: That's what we're in the process of doing now, correct. Councilwoman Dockendorf: Alright, thank you. Mayor Chmiel: Are there any other questions? Councilman Senn: You said something about you wanted to tie this to the Highway 5 corridor study. Jim Paulette: Right. In other words, what I'm trying to say is that, as I indicated before, we're coming very close to putting together a formal response to the Highway 5 corridor development study. I think there is some connection between the tax increment financing plan and also the study that we're completing. We would feel better if we had an opportunity to tie them together and make a decision after we've had a chance to review the document and prepare a formal response for the land use, or for the Highway 5 corridors Which I believe we're very close. I'm not saying it's October or anything. We're talking within a couple of weeks Councilman Senn: Well I'm having trouble following it because it seems to me if you're trying to relate to the Highway 5 plan, I mean what that is is that gets to your land use issues. Jim Paulette: Right. Councilman Senn: Now I'm taking a big leap and going from land use issues to tax increment issues. Jim Paulette: It's a matter of being able to discuss the two simultaneously and make a decision based on our discussions about both issues. Councilman Senn: I'm not sure how one affects the other but that's where I'm going with it. Jim Paulette: I'm not either and basically what I'm saying, I'm not either but we haven't had a chance to review 5 � -i City Council Meeting - May 23, 1994 this document and we don't know if there is an actual connection between the two but we'd like to have the opportunity to take a look. Mayor Chmiel: I guess I don't see either the tie in between the Highway 5 corridor study and the tax increment district. I think if you're saying that you and your company has not yet had an opportunity to review that, basically it would probably be to the benefit of your company by adopting that tax increment district for the particular area Todd, would you like to? Todd Gerhardt: There's no question adopting this plan tonight will benefit the DataSery property. It has all the benefits to his property. Not approving it or delaying it, that's up to the Council. It has nothing to do with the Highway 5 corridor plan. Only if there's certain public improvements that you want to see accomplished in that area, you may use the increment that's available to the Council to fund certain public improvements. Dell Road, as I stated earlier, is one of those public improvements that you would look at upgrading and then TH 101. But other than that it has no ties into the Highway 5 corridor plan and is a benefit back to the property-.land write downs, public improvements ... Thai's all this plan calls for and that's all you can use those dollars for. ' Councilman Senn: And the Dell Road upgrade and the TH 101 upgrade are going to occur regardless of any land use decisions on that property, correct? Todd Gerhardt: That's correct. Those are safety issues. Mayor Chmiel: Now in relationship back to just to Dell Road for the south side of that. That road, if I'm not mistaken, is that not owned by, half by Eden Prairie and half by the City of Chanhassen? Todd Gerhardt: That is correct. Mayor Chmiel: And how do we tie that in with Eden Prairie? Todd Gerhardt: Well Eden Prairie has finished their half of the construction of that road and we have not completed our half—serve Chanhassen residents but we do have a lot of ability in maintaining our roadways. Right now it makes a very wicked jog to the left, if you're out there, and you cannot publically...assess those costs back to the DataSery people because there's no real benefit to that property for that. So the only ' mechanism we have is with the general fund dollars or to use tax increment...use tax increment. Jim Paulette: If I could just step back for a minute and maybe explain what I was getting at before. I guess our question is, upon completing our land use study we may decide that we do not want to develop that land for ' several years and if we do decide that, then it may not be in our best interest to establish this district now. And it may not make a difference but until our legal people have had a chance to review the document and understand it completely, we don't feel like we're ready to put our stamp of approval on it. Todd Gerhardt: It's an 11 year district, 9 years of which we can capture increment. ' Councilwoman Dockendorf: Is there an urgency to it Todd? Todd Gerhardt: No. The only thing, if you do decide to table it tonight, that you table it with a date to extend the date of the public hearing. So you have a date to extend that public hearing to. And that's the only thing ' that I would ask. If you do not extend it with a date, then we have to re- advertise. 1 6 City Council Meeting - May 23, 1994 Councilman Senn: Putting the district in place, and the eventual delay of development has no effect one way or the other on each other though, correct? Mayor Chmiel: Shouldn't. 1 Councilman Senn: No. I mean not even feasibly, or potentially. Councilman Wing: And if it's our desire to have this increment district, we might as well do it tonight and then that may affect their decisions to do what they're going to do accordingly. Or it might help them make decisions. But I think the recommendation is to go ahead with this. There's no relationship to any land use and I'm real comfortable with that. This is simply a collection district that we're going to create. Jim Paulette: There is a connection in that if you decided to approve it now, there is a possibility that the land use study may make the marketability of our land a somewhat distant opportunity for us. It's possible that we may not be able to develop the land in the manner in which it's laid out in the study in a year or two or three years. ' Councilman Wing: But TIF can only enhance that. Jim Paulette: It will help, correct. It will help. Councilman Wing: And if it was a total disaster, you may not get the financing. Or the assistance. I mean I can't see anything but positive here. ' Councilman Senn: And if you delay forever, the TIF's going to be gone anyway. Because that's got a sunset date on it then right? Mayor Chmiel: That's part of the given problem with it. Me, all I see is strictly positives for your company. Whether you're choosing to expand or not expand. And if you do expand, there are some TIF dollars that could be assisted to your company by creating some additional jobs within the community. So I just don't see any real ' pros and cons that, or anything that would really offset it that would be a disadvantage for your company. Jim Paulette: I think maybe then, looking at it from your perspective then, maybe the only thing that stands in , the way, I think really that maybe as a courtesy to DataServ, is just giving us the opportunity to review the document prior to the City Council voting on it. If that was a matter of a couple of weeks, that would still give us a chance to look at it. ' Mayor Chmiel: Well, I guess I wouldn't be objecting to that myself. But I would like to then put this back on Council agenda for June 13th and carry over the public hearing until that date. And then conclude with the review from your company. Councilman Senn: The only question I guess I'd like to ask is from staff's standpoint. Is there potentially any projects that could start in the interim in this area that would affect our ability to capture the increment? ' Todd Gerhardt: The only possibility would be the proposed daycare and expansion to the Press. Councilman Senn: But that's not 2 weeks. I'm just saying, is there something we don't, I mean not everything ' City Council Meeting - May 23, 1994 has to come before us I guess is what I'm saying. Is anyone planning an expansion or doing anything that would be potential increment? Todd Gerhardt: Not that I'm aware of. ' Councilman Senn: Okay. Mayor Chmiel: So with what I proposed, I would then make that a motion. Councilman Wing: Second that. ' Mayor Chmiel: There's a second. Any other discussion? Councilman Mason: A quick comment. I believe that I will be out of town on the 13th of June. I would like to go on record as saying that I would, if I were here, I would be voting for the TIF district_ Councilwoman Dockendorf. Do we need a 4/5? ' Councilman Mason: No. Just so my voice is heard. Thank you. Jim Paulette: Thank you very much. Mayor Chmiel moved, Councilman Wing seconded to table the public hearing on the approval of Development District No. 3 and Tax Increment Financing District No. 3 -1 until June 13, 1994 City Council 1 meeting. All voted in favor and the motion carried unanimously. AWARD OF BIDS: ' CHANHASSEN ES TATES 1ST AND 3RD ADDITION STREET RECO NSTRUCTION, PROJ NO. 93 -10. ' Charles Folch: Thank you Mr. Mayor, members of the Council. This past May 17th, bids were received and opened for the Chanhassen Estates 1st and 3rd street, drainage and reconstruction improvement project No. 93- 10. A total of 4 bids were received with the low bid being received by Brown & Cris at a total amount of $698,980.50, which is approximately 5% below the engineer's estimate. Brown & Cris has performed other ' projects within the city in the past and has a track record with the city. Therefore the city would recommend that the City Council award the contract for Chanhassen Estates 1st and 3rd Additions to Brown & Cris in the ' amount of $698,980.50. Mayor Chmiel: Any questions? Councilman Wing: How are the lines of communication with this neighborhood? Is there any, when the assessment hearings come up, is it going to be a done deal on this or are they going to say where'd this come from and how did—and we didn't know it was going this far. Are they being, are there city information letters going out letting them know that this is ongoing. It is on the move and here's the cost. ' Charles Folch: Absolutely. Since the public hearing was held, I think 2 letters were sent, maybe 3 letters were 8 CITY OF CHANHASSEN 3 1 ' t � 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 •FAX (612) 937 -5739 ' Action by City MmJnlstnker Endo Ted A Modit;e TO: Don Ashworth, City Manager D acre ' FROM: Todd Gerhardt, Assistant City Manager We Submitted to Commission Date S���riCed to Council DATE: May 19, 1994 SUBJ: Public Hearing Regarding the Approval of Development District No. 3 and Tax Increment Financing District No. 3 -1 At their April 11, 1994 meeting, the city council authorized staff to hold a public hearing to consider establishing a new economic development /tax increment financing district on the Banta Corporation property (the Press facility and DataSery properties - -see Attachment #1). Staff has completed review of the program and plan and has sent notice to both Hennepin , County and the Eden Prairie School District (see Attachment #2). The only letter we received was from Hennepin County who stated that the plan was being reviewed by their Ways and Means Committee (see Attachment #3). Staff is not expecting any further feedback from either of the two agencies. The Planning Commission completed their review and recommended approval as the overall ' plans are consistent with the city's Comprehensive Plan and the overall development for the area being considered in the district boundaries. The Planning Commission did, however, add one condition, that the plan be amended to include land acquisition consistent with the Highway 5 Corridor Study. The City Council's Role ' Under Minnesota Statute, the city council must hold a public hearing to allow citizen comments on the proposed plan. Once comments have been received, the city council should then consider approving the new Development District Program and Tax Increment Financing Plan and the establishment of Tax Increment Financing District No. 3 -1. In making this ' decision, the city council must find that the creation of a new tax increment financing plan/district is in the best interest of the community, specifically in the following areas: 1. Provide employment opportunities within the city. ' 2. Improve the tax base of the city and the general economy of the city and state. MEMORANDUM Mr. Don Ashworth May 19, 1994 Page 2 3. Implement relevant portions of Chanhassen's Highway 5 Corridor Plan (landscaping, entry monuments , etc.). ' 4. Completion of the city's portion of Dell Road south of Highway 5. 5. Assist with the planning and reconstruction of State Highway 101 (trail system, reconstruction of the road, etc.). You will notice on page 8 of the proposed plan (Attachment #4), staff put together estimated project costs for each of the public improvements located in the district. Again, these are just estimates and the city council would still have to authorize each of the projects and award of the bids. Recommendation Staff recommends that the city council open the public hearing after staff has completed an oral presentation on why the city should consider establishing a new tax increment district. The council should then ask for citizen comments and close the public hearing after comments have been heard. If the city council should find that the program for Development District No. 3 and the plan for Tax Increment Financing No. 3 -1 is in accordance with the overall development of the community, staff recommends that the council adopt the attached resolution (see Attachment #5). Attachments ' 1. Public hearing notice /map. 2. Letters to Hennepin County and Eden Prairie School District. ' 3. Letter from Hennepin County. 4. Proposed Tax Increment Plan. 5. Resolution. J AFR 05 '94 16:54 HOLMES & GRAVEN P.4 NOTICE OF PUBLIC HEARING ADOPTION OF PROGRAM FOR DEVELOPMENT DISTRICT NO. 3 AND PLAN FOR TAX INCREMENT FINANCING , DISTRICT NO. 3 -1 CITY OF CHANHASSEN ' NOTICE IS HEREBY GIVEN, that the City Council of the City of Chanhassen will hold a public hearing on Monday, May 23, 1994 i at p.m. in the Council chambers at City Hall, 690 Coulter Drive. The purpose for District No. 3 of the hearing is to discuss adoption of a Program Development and a Plan for Tax Increment Financing District No. 3 -1. Copies of the Program and Plan are available for public inspection at Chanhassen City Hall during regular business hours. The following map shows the general boundaries of the proposed Development District and TIF District: ' Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. , Dated: , 1994 BY ORDER OF THE CITY COUNCIL t City Manager REB67650 CH130 -36 .. r•: . N1 N' ..i _ w �`w 1 \ 4=, HOLMES 8: GRAVEN Ho. 001 002 HQLMES & GRAVEN i CHARTERED A#ormys BI Law 470 Pillsbury CGabr, Minneapolis, Minnesota 3!403 Roam Roam C. Low ROBRRr A. A1JOt (6i2) 337.4300 LAURA K. MOLLCT ' IkOK"D H. RA rY 6TLJ'FW J. BUaUL Faoimtle (612) 337.4310 BARBARA L PORTWOOD JORF B. Dux JAKU M. SYIOMMEN NARY G. Dossms JA= J. TROXION, JR. BTBAMJi N. GAIEY LARRY M. WnTIMM , COARiMR A. BENZ Bohm L. WZ19X9 JAbaS A. ROOM WAITER'S DIRECT DIAL GARY P. WINTER DAVIDD J. KzNwzvY DAVID L,. GRAYiN (IlfJg JOHN LLARSON (612) 337 -9262 — WZ JNOTOx H. LAW Of COUNSEL ROURT C. CARIAON CKA" L 1AM1R>:R L DAVmaON L J010 M. LZFrYLL, JR. FROSERT J. L MDAt.L T. JAY T. JAY BALIUN , April 26, 1994 Dr. Gerald McCoy Independent School District #272 $100 School Road Eden Prairie, MN 55344 RE: City of Chanhassen - Tax Increment Financing District No. 3 -1 Dear Dr. McCoy: ' Enclosed is a revised copy of the TIF Plan for the captioned district which is intended to replace the version sent to you by cover letter dated April 22, 1994. ' This version makes minor corrections to the previous document, but makes no substantive changes thereto. Specifically, the budget and estimate of impact on other taxing jurisdictions has remained the same. The public hearing before the ' Chanhassen City Council is still scheduled for 7:00 p.m. or thereafter on Monday, May 23, 1994. Sincerely, ' Ronald H. Batty Special Counsel RHB : ckr ' Enclosure I A-1 '4C. P tYi eQ- ' 1 1 AnaarM71 Al Law RODUT A. AMP RONALD H. SAM us RPM J. SVSUL JOHN L DRAM WARY Q. Dollam MWAKM K GALIY Conn A. Hern j0m S. H O LM" DAVmJ. 1 wmzDY JOHN L LARioN WS URMON a. 1AW CRARLIM L LsFVM9 JOaN M. Wrap. JR RORL n J. UNDAL.L April 22, 1994 HOLMES & GRAVEN NO.001 HOLMES & GRAVEN CHART1 .6D 470 PU Mury C6099r, Minnupath, MlnDWU 65402 (612) 331.4300 raahnila (613) 337.4!10 W;aTER DD=T DIAL (612) 337 -9262 Dr. Gerald McCoy Independent School District #272 8100 School Road Eden Prairie, MN 55344 CIC� RO URT G LO LAMA L MOLM SAR&AaA L PoitmoOD JAS M. MOMMI:N Am J. THomsoN, ]R. LARRY M. Wu mum SONNLE L. WILMS GARY P. WwrLR DAVID L. G RAVV+ (1929.1991) CY COUNSEL ROU RT C. C"WON R0WZT L DA Vm60N T. JAY LUAW RE: City of Chanhassen - Tax Increment Financing District No. 3 -1 Dear Dr. McCoy: This is to notify Independent School District #272 that the city of Chanhassen will conduct a public hearing on the establishment of Tax Increment Financing District No. 3 -1. The hearing will be held by the city council on Monday, May 23, 1994 at 7:00 p.m. in the Chanhassen city hall. A representative of the district is invited to attend the meeting and to comment on TIF District No. 3-1 or you may submit written comments prior to the meeting. L 17 I P-, Enclosed is a draft copy of the Plan for TIF District No. 3 -1. If you have any questions regarding the Plan, please feel free to call me at 337 -9262 or the Chanhassen city offices at 937 -1900. Sincerely, Ronald H. Batty Special Counsel RHB : ckr Enclosure F KAY MITCHELL PHONE ,� c. CLERK TO THE BOARD ? %'� .. ,�, �,2 348 - 5433 BOARD OF HENNEPIN COUNTY COMMISSIONERS A -2400 GOVERNMENT CENTER MINNEAPOLIS, MINNESOTA 55487 -0240 April 26, 1994 Mr. Ronald H. Batty, Special Counsel HOLMES & GRAVEN Attorneys at Law 470 Pillsbury Center Minneapolis, MN 55402 RE: City of Chanhassen - Tax Increment Financing District No. 3 -1 Dear Mr. Batty: Your letter dated April 22, 1994 enclosing the above plan for review and advising of a public hearing on same, was received by the Hennepin County Board of Commissioners at their meeting today. The contents were noted, and Chairman Andrew directed that the matter be referred to the Ways and Means Committee. Sincerely, ` C-- Kay 4tchell Clerk of the Board jc DEVELOPMENT DISTRICT PROGRAM, DEVELOPMENT DISTRICT NO. 3 and TAX INCREMENT FINANCING PLAN, TAX INCREMENT FINANCING DISTRICT NO. 3 -1 CITY OF CHANHASSEN, MINNESOTA May 23, 1994 This document drafted by: HOLMES & GRAVEN, CHARTERED 470 Pillsbury Center Minneapolis, MN 55402 (612) 337 -9300 REB69060 CE130 -34 dl�Mt`" 'J TABLE OF CONTENTS Pace ri SECTION I. DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT ' NO. 3 Subsection A. Definitions . . . . . . . . . . . . . . . . . . . . . . . . 1 2 , Subsection B. Statutory Authority . . . . . . . . . . . . . . . . . . . 2 Subsection C. Statement of Public Purpose . . . . . . . . . . . . . . Subsection D . Statement of Objectives . . . . . . . . . . . . . . . . . 3 Subsection E. Environmental Controls . . . . . . . . . . . . . . . . . 3 Subsection F. Open Space to be Created . . . . . . . . . . . . . . . 3 Subsection G. Public Facilities to be Constructed . . . . . . . . . . Subsection H. Proposed Reuse of Property . . . . . . . . . . . . . 3 . 3 Subsection I. Development District Financing . . . . . . . . . . . . 3 Subsection J. Relocation . . . . . . . . . . . . . . . . . . . . . 3 Subsection K. Administration of Development District - . . . . 4 Subsection L. Legal Description and Map of Development District , SECTION II. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 -1 Subsection A. Statutory Authority . . . . . . . . . . . . . . . . . . . 5 ' Subsection B. Statement of Objectives . . . . . . . . . . . . . . . . . 5 Subsection C. Statement of Public Purpose . . . . . . . . . . . . . . 5 Subsection D. Development District Program . . . . . . . . . . . . . 6 Subsection E. Description of TIF District . . . . . . . . . . . . . . . 6 Subsection F. Development District Contracts . . . . . . . . . . . . 6 Subsection G. Classification of TIF District . . . . . . . . . . . . . . 6 Subsection H. Modification of TIF Plan . . . . . . . . . . . . . . . . 6 Subsection I. Use of Tax Increment . . . . . . . . . . . . . . . . . . 6 Subsection J. Excess Tax Increment . . . . . . . . . . . . . . . . . 6 Subsection K. Limitation on Increment . . . . . . . . . . . . . . . . 7 Subsection L. Limitation on Administrative Expenses . . . . . . . . 7 Subsection M. Limitation on Boundary Changes . . . . . . . . . . . . 7 Subsection N. Relocation . . . . . 7 Subsection O. Parcels to be Acquired within TIF District 7 Subsection P. TIF Account . . . . . . . . . . . . . . . . . . . . . . 8 8 Subsection Q. Estimate of Costs . . . . . . . . . . . . . . . . . . . , Subsection R. Estimate of Bonded Indebtedness . . . . . . . . . . . 8 Subsection S. Original TIF Capacity and Tax Increment . . . . . . . 8 Subsection T. Duration of the TIF District . . . . . . . . . . . . . . 9 Subsection U. Estimate of Captured Tax Capacity . . . . . . . 9 ' Subsection V. Estimated of Impact on Other Taxing Jurisdiction . . 9 Subsection W. Annual Reports . . . . . . . . . . . . . . . . . . . . . 10 PIM69060 / 08130 -34 \1� I� u SECTION I. DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 3 A. Definitions For the purposes of the Development Program for Development District No. 3 and the Tax Increment Financing Plan for Tax Increment Financing District No. 3 -1, the following terms shall have the meanings specified below, unless the context otherwise requires: "Administrative expenses" means all expenditures of the City other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of real property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178 of the TIF Act. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants and planning or economic development consultants. "City" means the City of Chanhassen, a municipal corporation under the laws of the state of Minnesota; "City Council" or "Council" means the Chanhassen City Council; "City Development District Act" or "Act" means Minnesota Statutes sections 469.124 through 469.134, as amended; "Comprehensive Plan" means the City's objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City; "County" means Hennepin County, Minnesota; "Development District" or "District" means Development District No. 3 in which Tax Increment Financing District No. 3 -1 will be located; "Development District Program" or "Program" means the Program for Development District No. 3 which will be adopted by the City Council on May 23, ' 1994; "Project" means Development District No. 3; "State" means the State of Minnesota; "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued by the City to finance the public costs associated with Development District No. 3 as stated in the Program and in the Plan for TIF District No. 3 -1 or any obligations issued to refund the Tax Increment Bonds; "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes sections 469.174 through 469.179, as amended; and "Tax Increment Financing District" or "TIF District" means Tax Increment Financing District No. 3 -1, which is being created and established within Development District No. 3 pursuant to the TIF Act; and ' REB69060 08130 -36 1 1 "Tax Increment Financing Plan" or "Plan" means the Plan for TIF District No. 3 -1, which will be adopted by the City Council on May 23, 1994. , B . Statutory Authority The City has determined that it is necessary, desirable and in the public interest to establish Development District No. 3, pursuant to the provisions of the Act. The City has also determined that the funding of the necessary activities and ' improvements in Development District No. 3 shall be accomplished in part or in whole through tax increment financing in accordance with the TIF Act. C . Statement of Public Purpose , It is found that there is a need for improvements in the infrastructure in the area of the City hereby established as Development District No. 3 to increase , employment opportunities, improve the tax base and improve the general economy of the City and the State. The purpose of Development District No. 3 is to foster development of an area of the City to achieve its full potential. In order to accomplish this purpose, the City intends to invest in specified highway , improvements. D. Statement of Objectives The City seeks to achieve the following objectives through the Development - District Program: 1. promote and secure the prompt development of property in Development ' District No. 3 in a manner consistent with the Comprehensive Plan and with minimal adverse impact on the environment, which property is currently less productive because of the lack of proper utilization and lack of investment, thus promoting and securing the development of other land in the City; 2. promote and secure additional employment opportunities within , Development District No. 3 and the City for residents of the City and the surrounding area, thereby improving living standards and human preventing unemployment and the loss of skilled labor and other resources in the City; 3. secure the increase of property subject to taxation by the City, County, school district and other taxing jurisdictions in order to better , enable such entities to pay for public improvements and governmental services and programs required to be provided by them; 4. secure the construction and provide moneys for the payment of the cost of those public roadway and other improvements in Development District No. 3 which are necessary for the orderly and beneficial development of the Development District; ' 5. promote the concentration of appropriate industrial uses and related development within Development District No. 3 in order to maintain the area in a manner compatible with its highest and best use; and 6. encourage development within the District which is aesthetically pleasing and which creates a positive visual image of the City. ' 8069060 ' CE130 -34 2 I E. Environmental Controls It is anticipated that no development within the Development District will present major environmental concerns. All City actions, public improvements and private development will be carried out in compliance with applicable environmental standards. F. Open Space to be Created Any open space within the Development District will be created in accordance with the development controls of the City and will be adequate for the needs of the residents of the City. G. Public Facilities to be Constructed Public facilities constructed within the Development District will be financially feasible and compatible with the City's long range development plans. Public improvements to be constructed within Development District No. 3 will include improvement of Dell Road, and improvement of portions of T. H. 101 and T. H. 5. All improvements are located within Hennepin county. H. Proposed Reuse of Property The City may acquire property within Development District No. 3 for a public improvement project to widen Dell Road south of Lake Drive East and in regard to the T.H. 101 and T.H. 5 projects. Property within the Development District will be reused in accordance with the City's ordinances and comprehensive Plan as well as with this Program and the Plan for TIF District No. 3 -1. I. Development District Financing Within Development District No. 3, the City will establish TIF District No. 3 -1 ' to finance the cost of development activities. Project costs for TIF District No. 3 -1 will be met through pledged increment. J. Relocation Although no relocation is anticipated in connection with any project within Development District No. 3, the City accepts its responsibility for providing for ' relocation pursuant to section 469.133 of the Act. If relocation is necessary, provisions will be made in accordance with Minnesota Statutes sections 117.50 through 117.56, inclusive. K. Administration of Development District Maintenance and operation of the public improvements is the responsibility of the Administrator of Development District No. 3. Each year the Administrator will submit to the City Council the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of section 469.131 of the Act; provided, however, that such powers may only be exercised at the direction of the City Council. No action taken by the Administrator shall be effective without authorization by the City Council. The City has not and does not anticipate the need to create an advisory board to advise the City Council on the planning, construction or implementation of the activities and improvements outlined in the Development Program. PM69060 CE130 -34 3 L. Legal Description and Map of Development District A map of the boundaries of Development District No. 3 is attached hereto as Exhibit B. MM69060 08130 -36 4 I I SECTION II. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 -1. A. Statutory Authority Pursuant to section 469.175, subd 4 of the TIF Act, the City is authorized to establish tax increment financing districts to facilitate and provide financing for the development objectives articulated in the Development District Program. At the time of the adoption of the Program for Development District No. 3, the City also intends to establish TIF District No. 3 -1 pursuant to the TIF Act. B . Statement of Objectives The City seeks to achieve the following objectives through the establishment of TIF District No. 3 -1; 1. provide employment opportunities within the City; P� 2. improve the tax base of the City and the general economy of the City and State; 3. encourage development in areas of the City which have not been utilized to their full potential; 4. provide funding for certain public roadway improvements which are essential for full development of the Project; and 5. implement relevant portions of the Comprehensive Plan. The City's specific objective in establishing TIF District No. 3 -1 is to provide for a road improvement project in the vicinity of an expanding industrial/ warehouse area and to assist the developer of a proposed 40,000 square feet industrial expansion with certain on -site improvements. The City wishes to improve three roadways which serve the District and which currently limit growth. These include Dell Road, which will be widened from two (2) lanes to four (4) lanes south of Lake Drive East and which provides immediate access to the industrial sites. Other planned roadway improvements involve T. H. 101 and T. H. 5, which provide remote access to TIF District No. 3 -1. All roadway improvements are located entirely within Hennepin County. C. State of Public Purpose In adopting the Plan for TIF District No. 3 -1, the City will make the following findings: 1. Anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of TIF is deemed necessary; 2. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project by private enterprise; and 3. The TIF Plan conforms to general plans for development of the City as a whole. 4. The area included within TIF District No. 3 -1 qualifies as an economic development TIF district within the meaning of the TIF Act. The conclusions to be reached by the City Council regarding the above will be based upon the recommendations of city staff and the planning commission as REB69060 CE130 -3a 5 well as the familiarity of members of the City Council with the properties ' involved and the likelihood that those properties will develop within the reasonably foreseeable future solely through private efforts. D. Development District Program At the time of the establishing of TIF District No. 3 -1, the City also intends to adopt a Program for Development District No. 3. The plan for development of the City outlined in the Program will continue to provide the basis of the City's efforts to develop portions of the community which , have not and remain unlikely to be developed solely through private efforts. This Plan for TIF District No. 3 -1 is consistent with the Program for Development District No. 3. ' E. Description of TIF District The property identification numbers of the four parcels within TIF District No. 3 -1 are included as Exhibit A. A map of the boundaries of TIF District No. 3 -1 is attached hereto as Exhibit B. ' F. Development District Contracts The City has not yet entered into a development contract with regard to the development of any property within TIF District No. 3 -1. Contracts regarding property with TIF District No. 3 -1 will be , entered into in accordance with section 469.176, subd 5 of the TIF Act. G. Classification of TIF District TIF District No. 3 -1 qualifies as an , economic development TIF district, pursuant to section 469.174, subd. 11 of the TIF Act. _ H. Modification of TIF Plan The Plan for TIF District No. 3 -1 may be ' modified by the City, provided that any enlargement of the geographic area of the TIF District, increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on the debt if that determination was not a part , of the original Plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the City, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the City shall be approved upon the notice and ' after such discussion, public hearing and findings as required for approval of the original Plan . I. Use of Tax Increment. Pursuant to section 469.176, subd 4 of the TIF ' Act, all revenues derived fr6 TIF District No. 3 -1 shall be used in accordance with the TIF Plan. The revenues shall be used to finance or otherwise pay the capital and administrative costs of development activities within the Project as identified in the ' Program and Plan. J. Excess Tax Increment Pursuant to section 469.176, subd 2 of the TIF ' Act, in any year in which the increment exceeds the amount necessary to pay the costs authorized by the TIF Plan, the City shall use the excess amount to do any of the following, in the order determined by the City: ' 1. prepay the outstanding bonds or other obligations; 2. discharge the pledge of tax increment therefor; , 3. pay into an escrow account dedicated to the payment of bonds or other obligations; or MONO ' CH130 -34 6 4. return the excess amount to the' Hennepin County auditor who shall distribute the excess amount to the City, the County and school district in direct proportion to their respective tax capacity rates. The City may also choose to modify the TIF Plan in order to provide for other public improvements within the Project. K. Limitation of Increment 1. No increment shall be paid to the City from TIF District No. 3 -1 after three years from the date of certification of the original tax capacity of the property in the TIF district by the county auditor unless within the three year period (a) bonds have been issued pursuant to section 469.178 of the TIF Act, or (b) the City has acquired property within TIF District No. 3 -1, or (c) the City has constructed or caused to be constructed public improvements within TIF District No. 3 -1. 2. If, after four years from the date of certification of the original tax capacity of TIF District No. 3 -1, no demolition, rehabilitation, or renovation of property or other site preparation, including qualified improvement of a street or right -of -way adjacent to a parcel but not installation of underground utility service, including sewer or water systems, have been commenced on a parcel located within TIF District No. 3 -1 by the City, or by the owner of the parcel in accordance with the TIF Plan, no additional increment may be taken from that parcel, and the original tax capacity of that parcel shall be excluded from the original tax capacity of the TIF District. If one of these activities subsequently commences, the City shall so certify to the county auditor, and the tax capacity of the property as most recently certified by the commissioner of revenue may be added to the TIF District. 3. No tax increment shall in any event be paid to the City from TIF District No. 3 -1 after nine years from the date of receipt by the City of the first increment or 11 years from the date of approval of the Plan, whichever occurs first. ' L. Limitation on Administrative Expenses Pursuant to section 469.176, subd 3 of the TIF Act, administrative expenses are limited to 10 percent of the total tax increment expenditures budgeted or actually incurred, whichever is less. Each ' time the City increases the budget of TIF District No. 3 -1, the amount of increment allocated to administrative costs may be increased as long as the total of administrative expenditures does not exceed 10 percent of the total budget of the TIF District. M. Limitation on Boundary Changes The geographic area of TIF District No. 3 -1 may be reduced, but cannot be enlarged after five years following the date ' of certification of the original tax capacity by the Hennepin county auditor. N. Relocation Although no relocation is anticipated, the City accepts as binding its obligations under state law regarding relocation benefits and, if ' necessary, will administer relocation services for families, individuals and businesses displaced by public action. ' O. Parcels to Be Acquired Within the TIF District It is not anticipated that the City will acquire any property within TIF District No. 3 -1, except such RHH69060 CH130 -34 7 1 easements or other interests in property as may be necessary to complete the improvements of Dell Road, T. H. 101 and T. H. 5 anticipated by this Plan. I . P. TIF Account The tax increment received with respect to the TIF District No. 3 -1 shall be segregated by the City in a special account on its official books and records. Q. Estimate of Project Costs The following costs are authorized for i expenditures within TIF District No. 3 -1: Roadway Improvements , Dell Road $ 200,000 T. H. 101 2,000,000 T. H. 5 660,000 ' Subtotal $ 2,860,000 Special Assessment Reduction Program 615,000 Administrative Expenses 220,000 , TOTAL $ 3,695,000 All of the costs authorized by this Plan will be for improvements located ' entirely within Hennepin county. R. Estimate of Bonded Indebtedness. The City may choose to sell bonds in an amount not to exceed $3,080,000 to finance the public costs authorized by the ' Plan for TIF District No. 3 -1. The City may sell general obligation bonds to finance construction of Dell Road, T.H. 101 and T.H. 5 . The City may also enter into a "pay -as- you -go" revenue obligation with the developers of industrial facilities to reduce their special assessment obligations. S. Original Tax Capacity and Tax Increment Pursuant to section 469.177, , subd. 1 of the TIF Act, the original tax capacity for TIF District No. 3 -1 is $464,348. Each year the Hennepin county auditor will measure the increase or decrease in the total tax capacity of property in the TIF district. Any year in which the tax capacity of TIF District No. 3 -1 exceeds $464,348, an increment will be ' payable to the City. Any year in which the tax capacity is below $464,348, no value will be captured and no increment will be payable to the City. Each year after the certification of the original tax capacity, the county auditor will increase or decrease the original tax capacity of property within TIF District No. 3 -1 as a result of: I. change in the tax exempt status of the property; ' 2. reduction or enlargement of the geographic boundaries of the TIF ' District; or 3. reduction of valuation by means of a court - ordered abatement, stipulation agreement, voluntary abatement made by the assessor or auditor , or by order of the Minnesota commissioner of revenue. t 86869060 CH130 -34 8 , �I Percent of Tax Increment Attributable to Various Taxing Jurisdictions Tax % of Total Capacity Tax Est. Tax Taxing Jurisdiction Rate Capacity Loss ($) City of Chanhassen Hennepin County Eden Prairie School District ' Other REB69060 CH130 -34 25.536 37.441 62.635 6.176 TOTAL 131.788 E 19.4 28.4 47.5 4.7 100.0 104,824 153,454 256,657 25,395 540,330 In addition, the auditor will adjust the original tax capacity of the property within TIF District No. 3 -1 in compliance with the requirements of section 469.177, subd. 1(f) of the TIF Act. ' T. Duration of the TIF District In accordance with section 469.176, subd 1 of the TIF Act, the City wishes to retain its right to receive TIF payments until nine years from the date of the receipt of the first increment, or 11 years from the date of approval of the Plan, whichever first occurs. U. Estimate of Captured Tax Capacity Pursuant to sections 469.175, subd. 1 and 469.177, subd. 2 of the TIF Act, the estimated net captured tax ' capacity of TIF District No. 3 -1, will be $410,000 after January 2, 1995, for taxes payable in 1996. The captured tax capacity was estimated in the following manner ' Tax Capacity on January 2, 1995 $ 874,348 Original Tax Capacity -464,348 Captured Tax Capacity 410,000 Pursuant to section 469.177, subd. 2 of the TIF Act, it is found and declared that all of the captured tax capacity generated by TIF District No. 3 -1 is necessary ' to finance or otherwise make permissible expenditures authorized by section 469.176, subd. 4 of the TIF Act. _ ' V. Estimated of Impact on Other Taxing Jurisdiction In is anticipated that $540,330 in increment will be captured annually within TIF District No. 3 -1. This increment amount is based on the value of the development on January 2, 1995, for taxes payable in 1996. For the purposes of estimating increment during the life of TIF District No. 3 -1, no inflation has been assumed in the value of the new development. The composite tax capacity rate for the affected property is currently 131.788 percent. Applying the percentage of the total tax capacity rate attributable to each taxing jurisdiction to the annual increment of $540,330 reveals the annual "loss" of tax dollars by each jurisdiction if the projects would have occurred without TIF. Although the City believes the actual impact on other taxing jurisdictions is zero because development would not have occurred within the reasonably foreseeable ' future without public intervention, the assumed amount of tax dollars foregone by each jurisdiction is listed below: �I Percent of Tax Increment Attributable to Various Taxing Jurisdictions Tax % of Total Capacity Tax Est. Tax Taxing Jurisdiction Rate Capacity Loss ($) City of Chanhassen Hennepin County Eden Prairie School District ' Other REB69060 CH130 -34 25.536 37.441 62.635 6.176 TOTAL 131.788 E 19.4 28.4 47.5 4.7 100.0 104,824 153,454 256,657 25,395 540,330 I. � W. Annual Reports. Pursuant to section 469.175, subd 6 of the TIF Act, ' the City must ile an annual financial report regarding TIF District No. 3 -1. The report shall be filed by July 1 of each year with the school board, the county board and the state auditor. The report to be filed by the City shall include the following information: 1. the original tax capacity of TIF District No. 3 -1; , 2. the captured tax capacity of TIF District No. 3 -1, including the amount of any captured tax capacity shared with other taxing districts; 3. the outstanding principal amount of bonds issued or other loans ' incurred to finance project costs in TIF District No. 3 -1; 4. for the reporting period and for the duration of TIF District ' No. 3 -1, the amount budgeted under the TIF Plan and the actual amount expended for the following categories: (a) acquisition of land and buildings through condemnation or ' purchase; (b) site improvement or preparation costs; (c) installation of public utilities or other public improvements; (d) administrative costs, including the allocated cost of the ' City; 5. for properties sold to developers, the total cost of the property to the City and the price paid by the developer; and 6. the amount of tax exempt obligations, other than those reported under clause (3) , which were issued on behalf of private entities for facilities ' located in TIF District No. 3 -1. In addition, the City must report annually by March 1 to the Minnesota ' commissioner of revenue the following amounts for the entire municipality: (1) the total principal amount of nondefeased tax increment financing bonds that are outstanding at the end of the previous calendar year; and ' (2) the total annual amount of principal and interest payment that are due for the current calendar year on (i) general obligation tax increment financing bonds, and (ii) other tax increment financing bonds. The City must annually report to the commissioner of revenue the following amounts for TIF District No. 3 -1: (1) the type of district, whether economic development, redevelopment, housing, soils condition, mined underground space, or hazardous substance site; ' (2) the date on which the district is required to be decertified; (3) the captured net tax capacity of the district, by property class as ' specified by the commissioner of revenue, for taxes payable in the current calendar year; R069060 10 CE130 -34 (4) the tax increment revenues for taxes payable in the current calendar year; (5) whether the tax increment financing plan or other governing document permits increment revenues to be expended (i) to pay bonds, the proceeds of which were or may be expended on activities located outside of the district, (ii) for deposit into a common fund from which money may be expended on activities located outside of the district, or (iii) to otherwise finance activities located outside of the tax increment financing district; and (6) any additional information that the commissioner of revenue may require. PM69060 08130 -34 11 EXHIBIT A Parcels Included within TIF District No. 3 -1. 07- 116 -22 -21 -0002 07- 116 -22 -34 -0008 07- 116 -22 -34 -0009 07- 116 -22 -33 -0027 MM69060 CE130 -34 12 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA Date Resolution No. ' Motion By Seconded By RESOLUTION ADOPTING A DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 3 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 -1 BE IT RESOLVED By the City Council (the Council) of the City of ' Chanhassen, Minnesota (the City) as follows: Section 1. Recitals 1.01. It has been proposed that the City establish Development District No. 3 pursuant to Minnesota Statutes §§ 469.124 through 469.154 and create Tax Increment Financing District No. 3 -1 pursuant to Minnesota Statutes §§ 469.174 ' through 469.179 within Development District No. 3. 1.02. The Council has investigated the facts and has caused to be prepared ' a development district program (the "Program ") describing the public assistance needed within Development District No. 3 and a tax increment financing plan (the "Plan ") describing the specific acts to be taken to assist development within the boundaries of Tax Increment Financing District No. 3 -1. ' 1.03. The City has performed all actions required by law to be performed prior to the establishment of Development District No. 3 and Tax Increment ' Financing District No. 3 -1 and the adoption of a Program and Plan relating thereto, including, but not limited to, notification of Hennepin county and the Eden Prairie school district; a review of the Program and Plan by the planning commission for ' their consistency with the general plans for development of the City; and holding a public hearing regarding the Program and Plan upon such notice as is required by law. ' 1.04. The Program and Plan are contained in a document entitled "Development District Program, Development District No. 3 and Tax Increment Financing Plan, Tax Increment Financing District No. 3 -1, City of Chanhassen, ' Minnesota," dated May 23, 1994, and on file in the office of the City Manager. 1.05. The Council has fully reviewed the contents of the Program and the Plan ' and has on this date conducted a public hearing thereon at which the views of all interested persons were heard. RESOLUTION Section 2 . Findings Related to Establishment of Development District No. 3 ' 2.01. The Council hereby finds that the establishment of Development District No. 3 is intended, and in the judgment of the Council, its effect will be to provide an impetus for commercial development in the city, increase employment, and otherwise promote the public purposes and objectives specified in the Program. 2.02. It is further found and determined that: a) The land in the Development District No. 3 would not be made available for development without the public intervention and financial assistance , described in the Program and Plan; b) The Program will afford maximum opportunity, consistent with the sound needs of the city as a whole, for the development of the District by private enterprise; and c) In accordance with the findings of the planning commission, the Program conforms to the general plan for development of the city as set forth in the city's comprehensive plan. ' Section 3. Findings Related to Establishment of Tax Increment Financing District No. 3 -1 3.01. It is the opinion of the Council that development of the properties S included within Tax Increment Financing District No. 3 -1 would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future due to the lack of an adequate public investment and that the use ' of tax increment financing is therefore necessary. 3.02. The Council finds that the Plan for Tax Increment Financing District ' No. 3 -1 conforms to the general plan for development of the City, based upon the recommendations of the planning commission. 3.03. The Council finds that the Plan for Tax Increment Financing District ' No. 3 -1 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the District by private enterprise. , 3.04. The Council further finds that the establishment of Tax Increment Financing District No. 3 -1 is intended, and in the judgment of the Council, its effect will be to promote the public purposes and accomplish the objectives specified in the , Program and Plan. 3.05. The Council has relied upon the opinions and recommendations of its ' staff and planning commission and the personal knowledge of the members of the council in reaching its conclusions regarding the creation of Tax Increment Financing District No. 3 -1. 3.06. The City Council hereby finds that Tax Increment Financing District , No. 3 -1 is an economic development tax increment financing district within the meaning of Minnesota Statutes § 469.174, Subd. 12. 1 I ATTEST: Section 4. Approval of Development District Program and Tax Increment Financing Plan; Establishment of Tax Increment Financing District No. 3 -1 4.01. The Program for Development District No. 3 and the Plan for Tax Increment Financing District No. 3 -1 are hereby approved and adopted. Tax Increment Financing District No. 3 -1 is hereby established. 4.02. The boundaries of Development District No. 3 and Tax Increment Financing District No. 3 -1 are described in the Program and Plan therefor and are incorporated herein by reference. 4.03. The City elects to be governed by Minnesota Statutes 1469.177, Subd. 3(a), with regard to fiscal disparities for Tax Increment Financing District No. 3 -1. 4.04. The City Manager is authorized and directed to transmit a certified copy of this resolution together with a certified copy of the Plan to the auditor of Hennepin county with a request that the original tax capacity of the property within Tax Increment Financing District No. 3 -1 be certified to the City pursuant to Section 469.177, Subd. 1 of the Tax Increment Financing Act and to file a copy of the Program and the Plan with the Minnesota department of revenue. 4.05. The City may, at the appropriate time, take action to issue and sell its general obligation bonds pursuant to the Tax Increment Financing Act to finance the costs identified in the Plan for Tax Increment Financing District No. 3 -1. DATED: May 23, 1994 Donald Chmiel, Mayor Donald Ashworth, City Clerk /Manager 1 '�4 14:15 DH H:: flhi r12 'E^ . 1 June 13, 1994 7 J Honorable Mayor Don Chmiol & Council Members City of Chanhassen 690 Coulter Drive P.O. Box 147 Chanhassen, MN 553174147 RE: r 1`11 PG_1H 6L1.SOUTH C onimny 1 2125.Te nology C*e E P rairie, Minnesota i /Yt �tyq� Establishment of a Tax Increment Financing District Datasery Chanhassen Property Dear Mayor Chmiel and Council Members: Thank you for providing Datasery the opportunity to review the tax increment financin discussed this evening. After reviewing the proposal and discussing it with Todd Gerhardt, Data sery in g wishes to convey to you Our approval. Upon passage of the proposal, we look forward to several years of productive efforts in cooperation with the City of Chanhassen. From our review and our meeting with Mr. Gerhardt, we are informed that City revenue from the TIF Plan will be used for various public improvements. Datasery respectfully proposes that when the City detern nes which public improvements to fund with its portion of the TIF funds generated from development on the Datasery site, it consider funding certain public Improvements at that site. Datasery has discussed these proposals with Mr. Gerhardt, and they are as follows: 1- Landscaping the boulevard; . Creating asphalt Paths that will connect with trails; existing and proposed Chanhassen park 3• Connecting developments on the sit$ to both the NSP Bluff Creek g3 load center and the NSP Westgatei64 load center; 4. Upgrading pine utlCrties; and 5 C r a ti a pond and connecting this'pond to the City's existing pond Thank you for your consideration of those proposals. if you have ah this letter, please feel free to contact me at 829 -6553. y y questions about the contents of Sincerely, DAT INC. Jim Paulet Faciaties Manager 3819 cc: Todd Gerhardt