2h. Approve Master Joint Powers Agreement, Chaska/Carver County/Chanhassen, Carver County Road Construction �1
MEMORANDUM
CITY OF a-k.
CHANHASSEN -
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
Note: Hopefully the council has had an
opportunity to review this document
(included as a part of the December
packet). Approval is recommended.
bA 1 4 u DWA (1-4-94)
DATE: December 13, 1993
SUBJ: Master Joint Powers Agreement, Chaska/Carver County /Chanhassen, Carver
County Road Construction
Attached please find a copy of the "Master Agreement" describing how cost sharing would occur
' between Chaska/Chanhassen/Carver County to insure that county roads within eastern Carver
County are brought up to urban standards. Also enclosed is a detailed "cost estimate summary"
showing the detailed projects, when they are proposed to be completed, and how cost assignment
occurred. This agreement has been in the process of being developed over the past two years
and staff has attempted to insure that the city council received copies of the revised work
programs during our various work sessions this past year. The overall scope of the project
(approximately $16M in road improvements) has not significantly changed from when this item
was presented this past spring. Although I do not see this evening's action as being one of final
approval, I would hope. to obtain any final concerns of council members so that when this item
is presented on January 10 that it can be presented as a consent agenda item.
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Attorneys at Law
ROBERT A. ALSOP
RONALD H. BATTY
STEPHEN J. Bum
JOHN B. DEAN
MARY G. DO BBiNS
STEFAMIE N. G ALEY
CORRINE A. HE INE
JAMES S. HO LMES
DAVID J. KENNEDY
JOHN R. LARSON
WZUDIGTON H. LAW
CHARLES L LEFEVERE
October 12, 1993
HOLMES & GRAVEN
CHARTERED
JOHN M. LEFEYRE, JR.
ROBERT J. L NDALL
LAURA K. MOLLET
BARBARA L PORTWOOD
J AMES M. STROMMEM
JAMES J. TH OMSON, JR.
LARRY M. WERTHEIM
BONNIE L WIImNs
GARY P. WINTER
DAVID L GRAVEN (1939.1991)
OF OOUNSEL
ROBERT C. CARLSON
R OBERT L DAVIDSON
470 PNsbury Center, Minneapolis, Minnesota SSM
(612) 337 -9300
Fnaimile (612) 337 -9310
WRITER'S DIRECT DIAL
(612) 337 -9262
Mr. Don Ashworth
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
RE: County Road Improvement Agreement
Dear Don:
Enclosed is a revised draft of the captioned document which incorporates the changes
the parties agreed upon at our meeting on October 4, 1993. I am sending a redlined
version to you and to Dick Stoltz and Dave Pokorny to review the changes. Being
an optimist, I am also sending you six "clean" originals for execution. If the
Agreement is in proper form, please execute the originals and send them to the other
parties for similar action.
Sincerely,
Ronald H . Batty
RHB : ckr
cc: Dick Stoltz
Dave Pokorney
L�
CARVER COUNTY PUBLIC WORKS DEPARTMENT
M
November 19, 1993
To: Don Ashworth, Chanhassen City Manager
Dave Pokomey, Chaska City Administrator
Dick Stolz, Carver County Administrator
From: Roger Gustafson, County Engineer
MEETING REMINDER
HIGHWAY "MASTER AGREEMENT"
FRIDAY, DECEMBER 3, 1993
9:00 to 10:00 A.M.
CHASKA CITY HALL
Attachments:
1. Project Location Map - (November, 1993)
2. Agreement - (Draft of November 19, 1993)
• Exhibit A - Project Summary Sheet - (November 19, 1993)
• Exhibit B - Sample Project Agreement (November 19, 1993)
• Exhibit C - Cost Obligation Tabulation - (November 19, 1993)
3. 1993 -1998 CIP (Highway Projects) - (November 19, 1993)
Notes:
1.
2.
Projects -
RECEIVED
NOV 2 ,
3
CITY OF CHMI IAbblihl -'
* Construction start for CSAH 18 (rH 41 to TH 101) delayed from 1995 to 1996. '
* Construction start for CSAH 19 (Timberwood Drive) advanced from 1995 to 1994.
* Traffic signal for CSAH 19 and TH 5 intersection advanced from 1995 to 1994. '
* Construction of CSAH 17 (CSAH 14 to CSAH 18) removed from Highway 'Master '
Agreement list of projects.
* Traffic signal for CSAH 17 and CSAH 14 intersection removed from Highway 'Master
Agreement' list of projects.
Cost Obligations -
* Defers city payments by shifting county state aid obligations to earlier years of program. '
* Chanhassen obligation of $120,000 in 1997 (November 8 tabulation) shifted to 1995.
. N1
1997
1997 �•..�.
1997..
- : 7
6,
lk
1994
r
1994
1998-99
1997-98
-y
7.*
Z� A4
'
dill
1997 1994
1993
1993
P 1995
;;?77- 1994
7
1996 A
A NA.
1994
1998-99
1996 0
N
1998 CHANII
1993 llaM 1993
C
11;-SVA
/ _'' ' ./ _ �� �/, �_ w� -_- -. :•� f' .�- 998 A,
:A.- 1996
199.8 1993 -1 995
J f: V
"Y
'I 4&k-- it
4._
995
C
y (,C!-" ,
-' �'*. (`� A i CARVER COUNTY
- DEPARTMENT OF PUBLIC WORKS
1993-1998
COUNTY HIGHWAY
AND
1994 LOCAL MINOR ARTERIAL STREET
1996
. .......... CONSTRUCTION PROGRAM
1 ' CHANHASSEN, CHASKA. AND VICTORIA AREA
OF
CARV ER COUNTY
19
NOVEMBER, 1993
LEGEND
C Corridor
•
Tiatfic S;gnal Installation LOC41
000000000
Devekn"ent Di$V;ct bOundstY
NOVEMBER, 1993
Draft of November 19, 1993
AGREEMENT
THIS AGREEMENT is made this _ day of , 1993, by and among the
City of Chanhassen, a municipal corporation under the laws of Minnesota
(Chanhassen); the City of Chaska, a municipal corporation under the laws of
Minnesota ( Chaska) ; and the County of Carver, a municipal corporation under the
laws of Minnesota (Carver County) .
WITNESSETH :
WHEREAS, Chanhassen, Chaska and Carver County recognize the need for
certain highway improvements in eastern Carver County; and
WHEREAS, Chanhassen, Chaska and Carver County have developed a plan for
constructing the needed highway improvements, which plan is contained in a
document entitled "Eastern Carver County Transportation Study" (Study); and
WHEREAS, the Study identifies the traffic and highway needs from the present
through the year 2005 within the eastern portion of Carver County, including the
cities of Chanhassen and Chaska; and
WHEREAS, the parties are desirous of implementing the Study and reaching
agreement regarding the priority, timing and financing of the highway
I improvements; and
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WHEREAS, the parties intend this Agreement to be in furtherance of efforts
to construct the necessary highway improvements in the eastern portion of Carver
County.
NOW, THEREFORE, in consideration of their mutual premises and obligations,
the parties hereto agree as follows:
Section 1. Definitions For the purpose of this Agreement, the following
terms shall have the meanings given below unless a different meaning is clear from
the context:
I
' a) "Chanhassen" means the city of Chanhassen, Minnesota.
4
' b) "Chaska" means the city of Chaska Minnesota.
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c) "Cities" means, collectively, the cities of Chanhassen and Chaska.
d) "County" or "Carver County" means Carver County, Minnesota.
e) "County Road Improvement" or "Improvements" means those roads or
portions thereof to be constructed pursuant to this Agreement.
f) "Phase I Roads Improvements" means the county roads to be constructed
or reconstructed with funds that are currently available or expected to be available
for such projects according to current projections.
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g) "Phase II Road Improvements" means those county roads which are to
be constructed or reconstructed only if the parties are successful in securing
funding.
h) "Study" means the Eastern Carver County Transportation Study.
i) "Tax Increment" means tax increment revenues received by Chanhassen '
or Chaska from one of their tax increment financing districts and used to pay for the
cost of the County Road Improvements. ,
Section 2. Statutory Authorization and Warranties This agreement is made I
pursuant to Minnesota Statutes 1 471.59. Each party represents that it has the I
power to enter into this Agreement and that nothing in its ordinances, charters or ,
other regulatory agreements prohibits the fulfillment'of its obligations under this
i
Agreement. The parties further represent that this Agreement has been executed
on behalf of each party by the properly authorized person or persons and that this
Agreement constitutes a legally binding obligation of such party.
Section 3. County Responsibility for Road Improvements It shall be the
responsibility of Carver County to provide for the design of all County Road I
Improvements to be constructed pursuant to this Agreement. The County Road '
Improvements to be constructed pursuant to this Agreement are those contained in ,
Exhibit A attached hereto and identified as "Agreement Projects". The
Improvements constructed within the Cities will be of an urban design and provide-
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for off - roadway trails. The County may utilize its engineering staff or may hire
consulting engineers for this purpose. The County shall be responsible for
obtaining any permits, licenses or approvals necessary to construct the
Improvements. The Cities shall have the right to inspect and review the plans and
specifications for the County Road Improvements prior to each project being bid by
the County. The County shall be responsible for biding the projects according to
law. After receipt of the bids, but prior to award thereof, the Cities and the County
shall have the right to review the bids and to reject all bids. If Chanhassen or
Chaska or the County wish to reject all bids, the party so desiring may do so by
notifying the others in writing of its intent and all bids shall be rejected in
I'
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accordance with the law. The County and the Cities agree to construct the Phase
I Road Improvements (Exhibit A - Agreement Projects) prior to December 31, 1998,
unless an alternative date is agreed to by the County and the Cities.
Prior to construction of any County Road Improvement, the County and the
affected city or cities shall enter into an agreement specifically relating to such
work. The agreement shall be prepared by the County and shall be in the form
generally utilized by the County for such purposes. The form of such agreement will
be similar to that attached hereto as Exhibit B.
Section 4. Cities' Responsibility It shall be the responsibility of Chanhassen 1 , I
or Chaska or the Cities with regard to the construction of County Road
Improvements to acquire all permanent and temporary right of way necessary for the ,
Improvement and for trails and landscaping related thereto. Such acquisition shall ,
be done at the sole expense of the entity affected by the project, which cost's shall '
not be included in the costs to be shared among the parties. In the case of any
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County Road Improvements which involve land in both Cities, the Cities shall share
equally in the cost of right-of-way acquisition.
q Y g Y
Section 5. Financing of Phase I . The parties agree to finance the costs of the
#is 676, 6C0
Phase I Road Improvements in an amount estimated to be P"92-;U ff. The County '
shall use its general revenues and county state aid highway funds and any other 1
funds legally available to it for the purpose of meeting its financial obligations under '
this Agreement. The Cities intent to utilize Tax Increment and other funds legally
available to them to satisfy their obligations under this Agreement. The Cities agree
to take such actions as may be necessary or desirable to enable them to utilize Tax
Increment to meet their obligations under this Agreement. This obligation shall not,
however, extend to the doing of anything which is now or hereafter prohibited by
the tax increment financing act, Minnesota Statutes If 469.174 through 469.179. '
rI
The financial obligations of the parties are included as Exhibit C and are
incorporated herein by reference. .
Section 6.. Phase II Road Improvements The parties recognize the
desirability of implementing further road improvements within eastern Carver County
in fulfillment of the needs outlined in the Study. However, the parties cannot
presently commit to such financial obligations. The parties agree to examine further
funding options and to pursue those options in good faith, consistent with sound
public policy. Chanhassen agrees to continue to explore methods to increase its
available Tax Increment for purposes of the Phase II Road Improvement.
Notwithstanding anything else herein to the contrary, this Agreement commits the
parties only to the construction of the Phase I County Road Improvements.
Section 7. Miscellaneous This Agreement may be executed in any number of
originals, each of which shall be considered an original. This Agreement shall be
interpreted under the laws of the state of Minnesota. This Agreement may be
modified only in writing signed by all parties. For the purposes of any notice which
must be given pursuant to this Agreement, notice shall be sufficient if delivered
personally or by prepaid mail delivered to:
(a) As to the City of Chanhassen: 690 Colter Drive
Chanhassen, Minnesota 55317
Attn: City Manager
(b) As to the City of Chaska: One City Hall Plaza
Chaska, Minnesota 55318
Attn : City Manager
(c) As to Carver County: 600 East 4th Street
P. O. Box 12
Chaska, MN 55318 -2188
IN WITNESS WHEREOF the parties have caused this agreement to be executed
on the day first written above.
CITY OF CHANHASSEN CITY OF CHASKA
Don Chmiel, Mayor
Don Ashworth, City Administrator
Robert Roepke, Mayor
Dave Pokorney, City Administrator .
COUNTY OF CARVER
Chairman, Board of Commissioners
County Administrator
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1993, by Don Chmiel and Don Ashworth, the Mayor and City
Administrator, respectively, of the City of Chanhassen, a Minnesota municipal
corporation, on behalf of the City.
Notary Public
•o
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1993, by Robert Roepke and Dave Pokorney, the Mayor and City
Administrator, respectively, of the City of Chaska, a Minnesota municipal
corporation, on behalf of the City.
Notary Public
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1993 by and , the
Chairman of the Board of Commissioners and County Administrator, respectively,
of the County of Carver Minnesota municipal corporation, on behalf of the County.
Notary Public
"t
This document drafted by:
HOLMES & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, MN 55402
E
(612) 337 -9300
November 19, 1993
Pepe 1 of 1
EXHIBIT A
CARVER COUNTY DEPARTMENT OF PUBLIC WORKS - HIGHWAY DEPARTMENT
1993 -1998 EASTERN CARVER COUNTY HIGHWAY CONSTRUCTION PLAN PROJECTS
(Chanhassen, Chaska, and Victoria Mee)
IN
PROPOSED 1993 -1998 CAPITAL IMPROVEMENT PLAN (HIyhsray Projects)
t
Agteerrreri
Reed . merd I LenathlCowriSfadl Eslknate I Cotirly I Chen I Chaska I Vldorla I Other P ads
naoww/rudlon
s
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•
New Cand"Idion
CSA 11 (Vi ctoria Dri
CS 18 (06th SU eep to TH 5
0.
ION
900_000
CS_A 11 (Victoria DO- )
L ake Bavar to_C_SA_H_18 (8Qh Str�
0.8
199_9
40,000
CSAH 13 (Bavade noel)
C SAH 1 8 (8 6T h St reet) to TH 5
1.3
19_93
646,000
CSA14 13 (Rolling Act" Road)
TH 5 to T 7
1.2
1997
1,54_0
CSAH 14 (Pioneer TraIQ
TH 10 (north and south)
0.6
1994
500,000
CSAH 15 Sig ned CR 17 /Audubon R
TH 2 12 to Tnanble Dr ive
0.9
1993
1,195,200
CSAH 17 (Powers Botieverd)
CSAH 18 (Lyman Btvd) to TH 5
1.6
1994
3,59
CSAH 17 (Powers Boulevard)
TH S l0 0 M ile North
0.3
1993
674,400
CSAH t6 66th SI
CSA 11 (Victoria Dr to C SAH 13 (Bavaria Rd)
1.0
1998
250,000
MAN 18 (L Bo ulevard)
TH 41 to TH 101
3.0
1996
3,984.00a
CSAH 19 (Gapin Boulevard)
CSA 18 (L B" to TH 5
1
1994
1,460,800
CR 117 Audubon R
CSAH 14 ioneer Tr) to CSA 118 men B
1.3
1993
1,776,400
CSAH 10 (CR 111E ngler Bhd ExWskn)
CS AH 15 (Signed CR 17 1Audubon Rd to TH 212
0.4
1993
531.200
CSAH 10 111E Blyd Ext ensicn
B evedeRoa d to CR /0
1.S
1997
1,210.0_00
CSAH 11 (G wrrne y A%wm Extension)
CSAH 10 to LakeBmda
2.1
1996
1,035.000
CSAH 17 (CR 17)Powers Blvd Exlerakn)
CSAH 14 (Pione Tr) to CSAH 18 (L yman Blvd)
1.0
1998
780.000
66
TH 2112
--
235.000
- -
4 0.00 0
120.000
10.000
- --
-
60,000
Skyvhtw 6 Crad
166.000
385,000
_
1_5_0.0_00
1.15
720.000
._....
25.000
25,000
CSAH 11 rctods Drive
TH�est Irdersodkn
_
450.000
964.800
131,000
230,600
TH5
2,155.600
1,441,200
C SAH 13 (Rollin Acres RoaM
TH 7
1997
674,400
CSAH 14 loner Tra
TH lot
250,000
108,000
CSAH 14 (Pkxwar Trail)
CSA 15 (Si gned CR 17 /Aufiibon Rd)
--
0
3,585.600
396.400
CSAH 17 (CR 171Powers B lvd Exemio
794.200
666.600
_
1.57t..•IOD
-
200.0001
136.000
CSAH 17 (Powers Bot"veRI)
531.200
TH 2112
--
1 995
138.0
1.0
120.000
10.000
1
5 0 .0 M
865.000
Skyvhtw 6 Crad
166.000
19_98
_
1_5_0.0_00
60.000
720.000
1994
108.000
t New 0r� ! CSAH 10 (CR 11iEngNr Bhd Extension) Chaska Fktod 1*mbn Cherxret -- 1994 1.060.000 I �- 1.060,000 - - I L 1 0
CSAH 10 CR I 1AE2gLw Blvd Extension
TH 2112
--
1 995
138.0
CSAH 10 (Signed CR I IjEnglar Bust)
TH 41
11O
1
120,000
CSAH 10 (Sig CR 11kn olor Blvd)
Skyvhtw 6 Crad
166.000
19_98
343,000
CSAH 11 (Victaft Drive)
TH 5 (Eas Inl
1994
108.000
CSAH 11 rctods Drive
TH�est Irdersodkn
--
1997
131,000
CSAH 13 (Ro" Acres Road)
TH5
1997
132,000
C SAH 13 (Rollin Acres RoaM
TH 7
1997
132,000
CSAH 14 loner Tra
TH lot
1994
108,000
CSAH 14 (Pkxwar Trail)
CSA 15 (Si gned CR 17 /Aufiibon Rd)
--
1998
136,000
CSAH 14 (Pioneer Tralq
CSAH 17 (CR 171Powers B lvd Exemio
1996
136.000
CSAH 15 S ned CR 17 /Au dt*mn RcQ
TH 212 -
1995
136.000
CSAH 17 (Powers Bot"veRI)
781h Street
--
1993
138,00_0
CSA14 17 (Powers Boulevard)
C 1 BMd)
1998
136,000
CSAH 18 r�ne nBarAe ve rd)
TH 41
--
1994
136,
CSA 18 (L Bou
CR 117 (Audubon Rd
-
1998
1 36. 000
CSA 19 (Gepin Bo reveed) IT MS
- -- -
--
1995
138,000
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I
s
Total
Cotar�rhaas Apra�eoNu.�
4_
9
60.000
Is,876.t1[IO
11O
7.4=.SWI
_
60.000
17S.000
166.000
-- - -_
27.000
27.000
44,000
nFaWl
_54_.00D
87.000
66.000
66.000
44,000
84000
54.000
54.000
136.000
135.000
46.000
92.00_0
138.000
138.000
89.000
69_000
135.000
_
0
89.000
_69.000
•
I
•
I
t
• - 500.000
• 1_195.200 1
3.598.BWJ Air
10 674400: 0
3.964.000, 0
1.480.600
! 1.776.4001
I 531.2001 •
I
I -- ... 138.000 i •
I ,36.(Xi
0
I _136.000]
1 _ 138.000II
• 136.0001
I 136.0001 I
i 136.000; •
C _138.000I 1
23.407.800
1.381.aoo
Is,876.t1[IO
11O
7.4=.SWI
3.4a,44MI
647.000
nFaWl
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EXH I Ba =T.B.
Agreement No.
JOINT POWERS AGREEMENT
BETWEEN
CARVER COUNTY AND THE CITY OF CHANHASSEN
FOR
DESIGN AND CONSTRUCTION
OF
CSAH 17 (Signed CR 17/Powers Boulevard)
THIS AGREEMENT, made and entered into by and between the City of Chanhassen, a municipal
corporation, organized under the laws of the State of Minnesota, parry of the first part, hereinafter referred
to as 'City, and the County of Carver, Minnesota, a municipal corporation organized under the laws'of
the State of Minnesota, party of the second part, hereinafter referred to as 'County';
WITNESSETH:
WHEREAS, The County and the City have been involved in discussions and studies relating to the design
and construction of:
Carver County State Aid Highway 17 (Signed CR 17 /Powers Boulevard) between County State
Aid Highway 18 (Signed CR 18 /Lyman Boulevard Trail) and Trunk Highway 5, and
WHEREAS, County State Aid Highway (CSAH) 17 is under the jurisdiction of the County for purposes of
maintenance and improvements, and
WHEREAS, It is the desire of the City to assess a portion of the construction costs in accordance with its
street assessment policy to the property benefitted by the construction of said facilities, and
WHEREAS, It is the desire of both of the parties hereto to enter into a written document regarding the
construction of said CSAH 17;
NOW, THEREFORE, Pursuant to Minnesota Statutes 471.59 and in consideration of the mutual covenants
and promises hereinafter contained, it is agreed by and between the City and the County as follows:
11
Page 2
CSAH 17 Agreement No. '
Carver County and City of Chanhassen
2. Act as the contracting agency for the construction of the project in accordance with the
competitive bidding requirements of Minnesota Statutes 471.345 and 375.21.
3. Hire the engineering consultant firm of Bennett Ringrose Wolsfeld Jarvis, Inc. to provide
the necessary construction supervision, surveying, inspection and reporting services '
required for construction approval by the County, the City, and the Minnesota Department
of Transportation, Office of State Aid. Said services shall include keeping adequate
records to document the quality of construction and to substantiate pay quantities.
4. Obtain a Chanhassen . City Council Resolution approving the construction plans,
specifications and special provisions prior to advertising the project for bids.
S. Obtain a Chanhassen City Council Resolution restricting the parking of motor vehicles on '
CSAH 17 prior to advertising the project for bids.
6. Obtain written approval of the construction plans for the project from the Minnesota
Department of Transportation, Office of State Aid, prior to contract award. Obtaining this
approval prior to advertising the project for bids is preferred.
A. That this agreement shall apply only to the improvement of the following described portion of
County State Aid Highway in the.City:
CSAH 17 (Signed CR 17 /Powers Boulevard) between CSAH IS (Signed CR 18/Lyman
Boulevard) and Trunk Highway 5, and
Said improvement shall include a pedestrian trail along CSAH 17.
B. That said CSAH 17 is to be constructed, consistent with current State Aid Standards, as a divided
urban street section with concrete curb and gutter having a width adequate fogy accommodating
two driving lanes in each direction.
C. That the Carver County Engineer will be the project manager in charge of each portion of said
,
described highway as and when same is designed and constructed.
D. Prosecution of the work will be performed on the following basis:
'
The County will:
1. Hire the engineering consultant firm of Bennett Ringrose Wolsfeld Jarvis, Inc. to prepare
and complete the construction feasibility study; the soil investigations for both the
feasibility study and the design of the project; the construction plans, specifications, and
special provisions; the estimate of construction cost; the permanent and temporary right -
of -way, drainage, and slope acquisition descriptions; and the other tasks required to
complete the design of the project, acquire necessary permits and approvals from
reviewing agencies, and otherwise provide for the construction of the project.
2. Act as the contracting agency for the construction of the project in accordance with the
competitive bidding requirements of Minnesota Statutes 471.345 and 375.21.
3. Hire the engineering consultant firm of Bennett Ringrose Wolsfeld Jarvis, Inc. to provide
the necessary construction supervision, surveying, inspection and reporting services '
required for construction approval by the County, the City, and the Minnesota Department
of Transportation, Office of State Aid. Said services shall include keeping adequate
records to document the quality of construction and to substantiate pay quantities.
4. Obtain a Chanhassen . City Council Resolution approving the construction plans,
specifications and special provisions prior to advertising the project for bids.
S. Obtain a Chanhassen City Council Resolution restricting the parking of motor vehicles on '
CSAH 17 prior to advertising the project for bids.
6. Obtain written approval of the construction plans for the project from the Minnesota
Department of Transportation, Office of State Aid, prior to contract award. Obtaining this
approval prior to advertising the project for bids is preferred.
1
� Page 3
CSAH 17 Agreement No.
Carver County and City of Chanhassen
7. Obtain concurrence from the C' of Chanhassen in the award of a construction contr
r tact
for the project. The County shall not award the construction contract until the City
advises the County in writing of its concurrence therein.
8. Maintain the project open to inspection by the City's duly authorized representatives.
9. Obtain the written approval of the City for any change in orders or supplemental
agreements to the contract involving work in which the City is cost participating, prior to
the performance of such work.
The City will:
1. Prepare, appraise, and acquire at its expense all necessary permanent and temporary
right -if -way, drainage easements and slope easements for the construction of the project
(with the desired permanent right -of -way being a minimum of 150 feet in width); and
assign any and all interest to said permanent and temporary acquisitions therein to the
County.
2. Institute and diligently pursue the acquisition of said right -of -way and easements as soon
as practicable after the ordering of the project, or a portion thereof, and subsequent to
the 'public hearing' pursuant to M.S.A. Chapter 429 as above set forth.
r 3. Hold a public hearing on the making of such improvements pursuant to Minnesota
Statutes, Section 429, prior to the award of a contract for the project.
F. That the design, construction, and funding of underpasses and bridges to accommodate a
pedestrian trail or trails through CSAH 17 shall be the sole responsibility of the City; the County
shall have no funding obligation toward the structure or structures.
G. That the design, construction, and funding of traffic signals at any intersection along the
described portion of CSAH 17 is not a part of this agreement.
H. That the County adopted policy for the division of costs for improvements to County State Aid
Highways within a municipality, said Policy being adopted by the Carver County Board of
Commissioners on February 8, 1972, a copy of which is attached hereto (Exhibit A) and made a
part hereof for reference, shall not apply to the improvement of the hereinbefore described
highway (CSAH 17).
' I. That the County shall do all things necessary for the construction of said facilities except as set
forth in this agreement.
J. That the City shall, in applying its subdivision regulations to future development proposals
abutting the portions of road included in this agreement, require direct access to CSAH 17 via
public street intersection unless otherwise approved by the County.
Page 4
CSAH 17 Agreement No.
Carver County and City of Chanhassen
K The City agrees that the County shall be the sole owner of all accompanying documents including
the original construction plans ("as- built"), specifications, and survey notes.
L. The method of financing the improvement project shall be the prerogative of Carver County and
the City of Chanhassen. Funding of the project is subject to the following provisions: ,
1. UTILITY COSTS:
a. The City at its expense, if any, shall be responsible for the relocation and /or t
installation of "local" utilities included in the construction of the project. Said
•local" utilities including, but not limited to, storm sewer, watermain, sanitary '
sewer, electrical distribution and street lighting systems.
b. The City at its expense, if any, shall be responsible for the relocation of "private'
utilities. Said "private" utilities including, but not limited to, natural gas, telephone,
cable, and electrical facilities.
2. CONSTRUCTION COSTS:
r
a. The City will pay one - hundred (100) percent of the construction costs for CSAH
17 trail underpasses and bridges installed as part of the project.
C. The City will pay all other expenses included in the construction contract for the
project such as clearing and grubbing, grading, base, subgrade preparation, dust
'
control, storm sewer, concrete curb and gutter, bituminous trails, bituminous
pavement and traffic control up to a total amount of $4,000,000.00 (excluding trail
underpass and bridge structures). If the total cost to the City for all other
expenses included in the construction of the project exceeds $4,000,000.00
'
(excluding trail underpass and bridge structures), the County will pay to the City
fifty (50 %) percent of the portion of the City's total cost which is in excess of
$4,000,000.00 (excluding trail structures).
'
3. ENGINEERING COSTS: ,
a. The City will pay all engineering costs for CSAH 17 trail underpass and bridge
structures installed as part of the project. '
b. The City will pay all other engineering costs for the project.
h
Page 5
CSAH 17 Agreement No.
Carver County and City of Chanhassen
4. REIMBURSEMENTS:
a. During each month of the term of the construction project, the County will bill the
City for its sharb of the construction and engineering costs. The City will
reimburse the County within sixty (60) days for any balance due.
b. Upon completion and final acceptance of the project and receipt of a detailed
listing of the final actual construction and engineering costs, the City will
reimburse the County within sixty (60) days for any balance due. In the event the
' City deposit exceeds the actual final cost of the City share, the County will refund
within sixty (60) days such overpayment.
M. The parties to this agreement shall be liable for its own acts to the extent provided for by law and
hereby agree to indemnify, hold harmless and defend the other named party to this agreement,
its officers, agents, employees, and volunteer workers against any and all liability, loss, costs,
damages, expenses, claims or actions, including reasonable attorneys' fees with the other, its
officers, agents, employees, and volunteer workers may hereafter sustain, incur or be required
to pay, arising from, or related to the provisions of services hereunder by reason of any act or
omission of the party, its officers, agents, employees and volunteer workers in the execution,
performance, or failure to adequately perform its obligations.
N. It is hereby understood and agreed that any and all employees of the City and all other persons
employed by the City in the performance of the provisions of services hereunder shall not be
considered employees of the County and that any and all claims that may or might arise under
the Worker's Compensation Act of the State of Minnesota on behalf of said employees while so
engaged and any and all claims made by any third parties as a consequence of any act or
omission on the part of said City employees while so engaged in the performance of any of the
provisions of services hereunder shall in no way be the obligation of responsibility of the County.
O. It is hereby understood and agreed that any and all employees of the County and all other
persons employed by the County in the performance of the provisions of services hereunder shall
not be considered employees of the City and that any and all claims that may or might arise
under the Worker's Compensation Act of the State of Minnesota on behalf of said employees
while so engaged and any and all claims made by any third parties as a consequence of any act
or omission on the part of said County employees while so engaged in the performance of any
of the provisions of services hereunder shall in no way be the obligation or responsibility of the
Crty.
P. Pursuant to Minnesota Statute 168.06, Subd. 4, the County and the City agree that the County,
the City, the State Auditor, or any of their duly authorized representatives at any time during
normal business hours and as often as they may reasonably deem necessary, shall have access
to and the right to examine, audit, excerpt, and transcribe any books, documents, papers,
records, etc., which are pertinent to the accounting practices and procedures of the Contractor
1 and involve transactions relating to this Agreement.
The parties agree to maintain these records for a period of three years from the date of
termination of this Agreement.
t-n
Page 8
CSAH 17 Agreement No.
Carver County and City of Chanhassen
O. During the performance of this Agreement, the City and the County agree to the following:
No person shall, on the grounds of race, color, religion, age, sex, disability, marital status, public
assistance status, criminal record, creed or national origin be excluded from employment right
in, participation in, be denied the benefits of or be otherwise subjected to discrimination under
any and all applicable Federal and State laws against discrimination.
R. Each parry to this agreement reserves the right to withdraw from and cancel this agreement within
30 days from the opening of bids for the project in the event either or both parties consider any
or all bids unsatisfactory; the withdrawal from or cancellation of the agreement to be
accomplished by either or both parties within 30 days of opening of bids by serving a written
,
notice thereof upon the other.
S. Each parry agrees that any modification of this agreement will be in writing and will be signed by
the parties hereto.
T. Each party understands that the contracts for CSAH 17 is scheduled to be awarded in 1993 or
1994. In the event that the contract for CSAH 17 is not awarded in 1994, this agreement shall be
'
subject to renegotiation.
U. Each party agrees that any and all portions of the 1989 joint powers construction agreement
between the parties hereto that refer to the herein described portion of CSAH 17 shall be
,
considered null and void upon execution of this agreement.
IN TESTIMONY WHEREOF, The parties hereto have caused these presents to be executed.
City of Chanhassen, Minnesota County of Carver, Minnesota
Mayor, City of Chanhassen Date Chairman, Bd. of Commiss. Date
r
Attest: Attest:
City Clerk Date County Administrator Date
Approved As To Form: Approved As To Form:
City Attorney Date County Attorney Date
w■� � � � � .�r it � � �- r r � � � � � � i�
November 19, 1993
EXHIBIT C
Page 1 of 1
CARVER COUNTY DEPARTMENT OF PUBLIC WORKS — HIGHWAY DEPARTMENT
1993-1998 'MASTER AGREEMENT' COUNTY HIGHWAY CONSTRUCTION PLAN PROJECTS
(Chanhassen and Chaska Area)
IN
PROPOSED 1993 -1998 CAPITAL IMPROVEMENT PLAN (Highway Projects)
Year
Chanhassen
Chaska
Carver County
Other & Grant
Cities. County,
Grant 8
Other
Tax Increment District
Tax Increment District
Tax Increment District
State Aid
Levy
Total
Cost
Obligation
Cost
Obligation
Cost
Obligation
Cost
Obligation
Cost
Obligation
Cost
Obligation
Cost
Obligation
1 993
35,600
837,400
1 ,877,000
0
341.300
4,500
3.095.800
199
537,900
1,441,200
990 ,000
2,870,000
306,800
595,5
6,741,400
1995
0
602.900
35,600
700,00
493,500
172.00
2,004,000
1996
0
3,264,800
36 2,800
0
0
0
3,627,600
19
0
0
0
0
0
0
0
1995
0
0
0
0
408,000
0
408,000
199
0
0
0
0
0
2000
0
0
0
0
0
2001
0
0
0
0
0
2 002
0
0
0
0
0
2003
0
0
0
0
0
Subtotal
573,500
6.146,300
3.265,400
3.570,000
1,549,600.
772.000
15.876.800
Total 6,719,6100 3,265.410 5,119,600 772.000 15.876,800
TiFPRO56.WK1
MiaY— 4 -93 TUE 14:10
MEMO
TO: CHASKA AND CHANHASSEN CITY COUNCILS
CARVER COUNTY BOARD OF COMMISSIONERS
FROM: DON ASHWORTH, CHANHASSEN CITY MANAGER
ROGER GUSTAFSON, CARVER COUNTY ENGINEER
DAVID POKORNEY, CHASKA CITY ADMINISTRATOR
DICK STOLTZ, CARVER COUNTY ADMINISTRATOR
P. Cam+ 2
SUBJ: EASTERN CARVER COUNTY TRANSPORTATION PLAN, PHASE 1
DATE: MAY 4 1993
The purpose of our memo is to provide a general outline
summarizing our understandings concerning implementation of Phase
1 of the Eastern Carver County Highway Construction Plan. In
1990 the cities of Chanhassen, Victoria, Chaska and Carver County
jointly developed the Eastern Carver County Transportation Study.
The study identified future traffic /highway needs based on 2005
development forecasts. The plan concluded that a number of major
County highway improvements were necessary in Eastern Carver
County to meet these future demands. The recommended 1993 -2002
program for Eastern Carver County was estimated,to cost $50
million to implement.
Recognizing that the full project cannot be funded in the five
year planning period and, further, that even a minimum program
cannot be funded 100* by Carver County's existing resources, the
cities of Chaska and Chanhassen along with Carver County have
developed an alternative funding package and phasing strategies
for implementing the key elements of the Eastern Carver County
highway needs.
Based on our discussion the first phase of the project would
consist of the improvements which are shown on Map A.
Financing for these improvements would be through a combination
of County tax levy, County State Aid allocation, City tax
increment funds and other City resources. The costs to each of
the jurisdiction and their annual appropriation are summarized in
Table A.
1
j
I� J
1
1
MAY- 4 -93 TUE 14:10 P.03
Based on preliminary estimates the cost of constructing the Phase
i improvements will be $23.6 million financed from the following
sources:
1
1
Carver County Tax Levy $ 3
Carver County State Aid 7
City of Chaska 3,458,400
City of Chanhassen 7,439,800
Other 2 0 63,600
$23,559
TOTAL
Under Minnesota statutes local municipalities can use tax
increment funds for roadway projects within established
districts. in addition, the tax increment statute 469.175
authorizes the County to require the local authority to dedicate
available tax increments to pay for certain County road
improvements.
To implement the initial phase of these highway improvements the
in
cities of Chanhassen and Chaska along with Carver County agree
concept to an implementation and financing plan summarized by the
following key elements:
A. Carver County agrees to construct those roadways
identified in Map A in the 1993 -1998 timeframe.
B. Carver County would contract with engineering consulting
firms to prepare plans and specifications on these road
with representatives of each of the three
projects
participating governmental entities serving on a
coordinating committee for the projects. Those roads
constructed in the Chaska and Chanhassen areas will be an
urban design and include an off roadway trail. The final
design of the roadway will be reviewed and approved_by
each City.
C. The cities of Chaska and Chanhassen would assume
responsibility for acquiring the necessary right -of -way
for projects within their respective communities. For
projects along the joint border between the two
communities the cities would share equally the cost of
right -of -way acquisitions.
1
1
MAY- 4 -93 TUE 14 :11
P.04
Ll
D. Carver County would agree to contribute a total of
the which would be funded
$10,598,000 towards projects
through the following allocations:
County
'
State Aid County
Year Allocation Tax Lev Total
19 $ 760,000 414,900 1,774,900
1994 1 1 030,000 636,600 1,666,600
1995 2 1 820,000 598,500 3,418,500
1996 -0- 395,000 395,000
'
1997 1 214 0 000 1
1998 1 370 000 759,000 2 129,000
$3,018,000 $10, 98,000
7,580
E. The City of Chaska would agree to contribute $3,458,400
and
which will be financed from tax increment revenues
made in payments as follows: 1993 - $1,892,000;
1994 - $1,025,600; 1995 - $362,800; 1996 - $10,000;
1997 - $168,000.
F. Chanhassen would agree to contribute $7,439,800 which
and made in
will be financed from tax increment revenues
payments as follows: 1993 - $ 1,075,800;
- 0;
1994 - $3,679,200; 1995 - $1,964,800; 1996
1997 - $20,000; 1998 - $700,000.
G. Chanhassen will certify the amount of "Surplus
2001,
1
Increment," as defined by statute, in the years
2002, and 2003. The County Auditor will calculate the
amount of said surplus due to School District 112, Carver
County, and the City of Chanhassen. The City may retain
that portion of the City and County distribution solely
to make County road bond payments. Any remaining monies
shall be remitted proportionately to City -and County
based upon their respective original distribution.
It is understood that based on preliminary cost estimates, the
fund
combination of funding by the three agencies is adequate to
the projects identified on Map A. Further, it is understood that
the three parties would agree to execute joint agreements
details of these understandings along with specific
'
outlining the
contracts for joint participation in each of the individual
County projects. As part of its initial studies, the County will
prepare more detailed cost estimates for each of the segments.
The efforts to date by each of the parties clearly exhibit the
local
benefits of developing a cooperative attitudes among
This memo accurately reflects the discussions
'
government units.
we have had to date. it is recommended that the policy making
boards of each of the three agencies review the projects and
consider adopting in concept the plan as
financing plan and
outlined. If you have any questions or continents please feel free
to contact me at your convenience.
1
11
n
r]
1
1
CITY OF 5
CHANBASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 0 FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager �� I
DATE: April 1, 1993
SUBJ: Upgrading of County Roads in Eastern Carver County, Update Report
An Eastern Carver County Transportation Study was jointly funded and completed approximately
five years ago. That report showed that the county road system was not only failing, but would
become disastrous within the next ten year period. At that time, we began jointly meeting with
Victoria, Chaska, and Carver County officials to determine how we could jointly upgrade these
road systems so as to better serve all of the communities. The process recognized that
Chanhassen or Chaska are not an island unto themselves, but truly a part of a larger community
that recognizes the importance of moving kids to and from schools, to and from friends in
Chaska, to and from Chaska's Community Center, etc. We have, made tremendous strides
improving Highway 5 so as to provide access to and from our community. However, if the
county roads fail, we will not have accomplished our original purpose as we will be unable to
get our residents to or from Highway 5.
If our county roads are not upgraded, we will have lost not only the opportunity to move
vehicles, but we will also have lost the opportunity to move pedestrians. If you consider that
almost every one of our major corridors (Highway 101, CR 17, CR 117, Lyman Boulevard, CR
17 south of Lyman) are all roads having rural sections. The ditches are necessary to
accommodate water runoff, but are a significant barrier in our attempts to move pedestrians. It's
not until after these roadways are modified from "rural sections" to "urban sections" that you can
reasonably accommodate four lanes of traffic plus two 8 -10 ft. trails on either side. We can build
as many trails and walkways through our downtown, business park, and residential
neighborhoods; but until similar trails exist along our county roads, we will never be able to meet
the pedestrian needs of our own community, or the larger community to which most of our
citizens relate.
There is a third element involved with collector roadways (county roads/State Highway 101)
which is not often considered by our residents. That point is that these collector roads can either
act as barriers within the community (as currently exists), or as means by which each of our
neighborhoods can become linked and act as a part of the whole. Greenwood Shores, Lake
to PRINTED ON RECYCLED PAPER
Mayor and City Council
April 1, 1993
Page 2
Susan Hills, and Colonial Grove are currently isolated neighborhoods; and residents of those
areas find it difficult to relate to neighborhoods across the street from them or to the community
itself. This form of isolation doesn't need to occur, nor does a vehicle passing by. need to sense
this isolationism. For example, homeowners living within Saddlebrook have a feeling that they
have as much ownership to the Chaparral Park as the Chaparral homeowners themselves. For
the most part, that entire area is linked together as though it were one larger neighborhood
instead of the six or seven separate subdivisions which were originally approved. ..Kerber
Boulevard acts as a common link allowing vehicular traffic to pass from one block to another,
pedestrians to move from Western Hills Pond to the Chaparral Park to downtown, etc. Street
lighting exists along the entire roadway with the city having places to install the light standards,
street signs, etc. If this roadway would have been built as a rural section, each of those ;
neighborhoods would be standing in isolation in much the same way that Greenwood Shores,
Colonial Grove, and Saddlebrook currently exist.
As stated earlier, the city's in eastern Carver County and the county itself have been working for
the past several years in an effort to upgrade our county roads. On Wednesday evening I would
like to provide an overview of those work efforts, total costs, and the likelihood of being able
to achieve county road upgrades throughout our community. One major means by which this
goal may be achieved is through a special bill which Carver County is seeking to gain approval
for from the state legislature. Specifically, they are hoping to see Chanhassen's tax increment
district extended for four years after the year 2000, with the revenues generated fiom that
extension being pledged to county road construction. Our previous -tax increment plan had
included dollars for county construction, but the amount of that was relatively minor, i.e. $2 to
$3 million through the year 2000. 1 recognize that $2 to $3 million is not an insignificant
amount of money, however, the overall county road construction bill approximates $40 million.
Again, I would like to discuss what roadways the county has designated as priorities, potential
construction dates, costs, potential participation levels, etc.
CARVER COUNTY DEPARTMENT OF PUBLIC WORKS
COUNTY HIGHWAY
AND
LOCAL MINOR ARTERIAL STREET
CONSTRUCTION PROGRAM (1993 -2002)
CHANHASSEN, CHASKA, AND VICTORIA AREA
OF
CARVER COUNTY
MARCH, 1993
CARVER COUNTY
DEPARTMENT OF PUBLIC WORKS
1999.20U
COUNTY HIGHWAY
AND
LOCAL MINOR ARTERIAL STREET
CONSTRUCTION PROGRAM
CHANHASSEN. CHASKA. AND VICTORIA AREA
OF
CARVER COUNTY
LEGEND
am mo s oo m Corridor
��� Caridw
• i�Mic Sipirl brWb�ion Io�sYOn
• � � � � � � � � pwr�cpn.nl0hrfo19oindrr
MARCH. 1993
1993 -2002 CONSTRUCTION PROGRAM
COUNTY HIGHWAYS AND LOCAL MINOR ARTERIAL STREETS
CHANHASSEN, CHASKA, AND VICTORIA AREA
Area
Chanhassen
Chanhassen & Chaska
Chaska
Chaska & Victoria
Victoria
Victoria & Laketown
Laketown
Cost Estimate (1)
15,080,000
2,717,600
12,711,600
592,800
5,532,400
796,800
2,406,000
5
0
P}�
Total 39
(1) Estimates include professional service and construction costs
for highways, traffic /railroad signals, bridges, and trails. No utility
relocation, right —of —way acquisition, street lighting, and landscaping
costs are included in the estimates.
no w M" M M . M M M M ' M m m W M M W M
CARVER COUNTY
DEPARTMENT OF PUBLIC WORKS
STAGE ONE (1993.1995)
COUNTY HIGHWAY
AND
LOCAL MINOR ARTERIAL STREET
CONSTRUCTION PROGRAM (1993.2002)
CHANHASSEN. CHASKA, AND VICTORIA AREA
OF
CARVER COUNTY
GEN
mamwamm CanWa
sommmmoom CarowumonfileconsuLwAm Cam"
• T#aak Spnal but asoon LWAMM
••••••••a DwubpmemO"idBo�Wdr�
MARCH, 1993
STAGE ONE (1993 -1995)
1993 -2002 CONSTRUCTION PROGRAM
COUNTY HIGHWAYS AND LOCAL MINOR ARTERIAL STREETS
CHANHASSEN, CHASKA, AND VICTORIA AREA
Area
Chanhassen
Chanhassen & Chaska
Chaska
Chaska & Victoria
Victoria
Victoria & Laketown
Laketown
Cost Estimate (1
8,686,200
2,124,800
4,452,800
0
0
0
0
1�
r
Total 15,263,800
(1) Estimates include professional service and construction costs
for highways, traffic /railroad signals, bridges, and trails. No utility
relocation, right —of —way acquisition, street lighting, and landscaping
costs are included in the estimates.
F
MEMO
,
TO: CITY COUNCIL
A O FROM: DAVE POKORNEY
SUBJ: EASTERN CARVER COUNTY TRANSPORTATION PLAN IMPLEMENTATION
DATE: MARCH 12, 1993
In 1990 Chaska along with Chanhassen, Victoria, Waconia, Carver
Carver County
and Carver County jointly developed the Eastern
Transportation Study. This study identified future
traffic /highway needs based on 2005 development forecasts. The
of major County highway improvements
plan concluded that a number
were necessary in Eastern Carver County to meet these future
demands. The recommended 1993 -2002 program for the Chanhassen,
is in Map
Chaska, and Victoria area of Carver County summarized
The cost to implement this program is $50,000.00.
A. estimated
Recently, ently I have been meeting with representatives of Carver
County and Chanhassen to develop a joint strategy for
constructing and funding these highway improvements. The first
step in our process was to review resources available to the
improvements. Through the 1990 s it
County to fund the necessary
is forecast that Carver County will receive approximately $1.3
zillion annually in State Aid funds and may have the ability to
levy an additional $600,000 - 51,000,0 for highway purposes.
10
Consequently, County would have resources available over a
basis for highway improvements of
year period on a County wide
$20 -22 million not adjusted for inflation. Consequently, even if
the County were to allocate 100% of its resources it would be
full Eastern Carver County highway.needs.
unable to address
'
The second step in our review was to begin to prioritize the
projects. As a product of this review we identified those
initial priorities. As you will
project as shown on Map B as our
note from the map, the main emphasis in the Chaska area is
upgrading County Road 11 which will provide an alternative
through the community. At the present time the
north /south route
only north /south route continuous roadway is Hwy. 41, which is
is
closely approaching capacity. Further, with development that
occurring along County Road 17 both in Chaska and in Chanhassen,
obvious priority. The total costs for the
'
this project became an
projects in the first priority group is estimated to be
$10,656 As we discussed these groups of projects it became
clear that any improvement program needed to be coordinated so as
Road 17
to avoid an extended period of construction (i.e. County
being under construction through four continuous construction
seasons) and that a financing plan should be developed which
in timely
'
would allow the County to complete these improvements a
manner.
va
1
County
State Aid County
Year Allocation Tax Levy County Total
1993 -0- $ 959,000 $1,009,000
1999 $1,323,000 200,000 1
1995 1,780,000 1,127,000 2
' 1996 975,000 655,000 1
D. The City of Chaska would agree to contribute $900,000
per year of tax increment revenues from 1997 through
2001 towards financing of the project. It is
anticipated that Chaska would sell debt of approximately
$ which would be available for construction to the
' County in 1999. Prepayment of the $1.6 million debt
would come from Chaska's $900,000 commitment annually
beginning in 1997.
E. Chanhassen would agree to contribute $1,000,000 of tax
increment in 1993 and $900,000 annually of tax increment
revenues beginning in 1996 through 1999 or a $2.6
million contribution. Chanhassen would agree to an
additional contribution of $1.8 million in the 2000 -2002
timeframe if they are not required by State statute to
' cancel their tax increment districts prior to that
timeframe. If, though, the districts are cancelled
Carver County would agree to contributing an additional
' tax levy of $1.8 million generated in the 2000 -2002
timeframe. This additional County levy results from new
revenues accruing to the County as a result of
ca linc of the Chanhassen tax increment districts.
Under t: ^. s scenario a total of $12.969 million would be available
and co-,; -!C! f:J:,d the construction of up to $10.7 million of highway
inprove -,eats in the 1 93-95 timeframe.
C:,'- - js�y, a nu�;,ber of details relative to this concept need to
be worked out prior to consideration by each of the governing
' bodies. The purpose, though, of reviewing these discussions with
the Council at this time is to both update the Council on our
discussions and to solicit your comments and direction that I
' should proceed on the project. Key policy questions that the
Council needs to discuss are:
' A. Is there a need to begin to put a higher priority on
constructing the County road improvements within Eastern
Carver County?
' B. Are the priorities as outlined in Exhibit B appropriate?
C. Is the Council supportive of using a portion of its
undesignated tax increment revenues for the proposed
improvements?
D. Is the sharing of costs as proposed among the three
parties equitable and appropriate?
Y�
ALTERNATIVE ONE
1933 - 1995 .
HIGHWAY IMPROVEMENT PROGRAM
FOR
COUNTY HIGHWAY CORRIDORS
IN
• CHANHASSEN'AND CHASKA
EAST OF TRUNK HIGHWAY 41
LOGENO
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1'
1
1
ALTERNATIVE ONE
IM -1905 MIGMWAY DAPROVE1rtEKT kOCI(AIA FO R COUNTY MKWWAY CORRIDORS
W
CMANMASSEN AND CMASKA W= OF TRUNK MKiMWAY 41)
Cty
CSAw 14 (Pronee. Trsi! )
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2 Lanes Plural (Overlay)
ti
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0
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2.610.900
120A00/rr"
CSA1( 15 (OR 17 /Audub -
.aka OrM West b TM 6
a LOnas Urban Orvidad
0.6
ta6A00
60A00
060,000
1,1aSA00
No WHY te100sto% sem md" ton. Unanpn` and ow
I'. M S b Oa 6674 Nerer.
a Lonn Urban Divided
03
WA00
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PC=
667.000
126.000
CSAw 18 (Lyman swd;
TM A t b C:naska feral Limes
A1TM41
2 Rural Lanes Ovarle
Taft si I
0.6
OA
16A00
70=
120A00
70.000
166A00
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2 Ldnss Rursf rte
0.4
03T
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66.000
66.000
AM=
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2.6
J!"A0o
I 126=0
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It Lanai Rura1(Overla
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2 Utl s Lanes Urbsn
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a=
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Traffic Signal
C.D.
16,000
120.0001
106A00
CF. tt; (Go ITi
is to NOM Cillf Limts
0
subtotal
4.4
756.=
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6210.000
6 ago -=
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i
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AITM 212
2 LAMS Run Ovarte
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0.4
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16.000
22A00
0
ISO=
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ISO=
150AOC
116110A00
Iwm
CSAH a (Fronee Tra"
I CSAH 16 (CA 17) b East City Ltmis
2 Larm Rural (Overlay)
0.4
170A001111ue
40,000
do=
120A00/rr"
CSA1( 15 (OR 17 /Audub -
TM 212 bTru%w Dave
2 (U11 4) Lars Urban
OA
I93A00
T2AD0
000.000
12t6A00
No WHY te100sto% sem md" ton. Unanpn` and ow
c"so ata watu ad
At TM 212
TraMe sional
0.0
/6A00
0
IN=
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CSAw 18 (Lyman swd;
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A1TM41
2 Rural Lanes Ovarle
Taft si I
0.6
OA
16A00
70=
120A00
70.000
166A00
CA 117 (CA 17 /Audubon RG,
CsAM to (Pionaa• Tr) b 03 Mile NCRt
2 (Ult h LArtw Urban
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I 126=0
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T.W 1 11-81 1262A00 AW,OWI 8.775 1o.eba.tloo
R -O -W
100.000/mW
ODAXIM"
OOAMINIS
60.000 /mW
oaatnetim
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SWAG FN4
120AM"alt
TFPRO22.WKI
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, we taw' IaMs urban
120A00/rr"
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i
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c"so ata watu ad
R -O -W
100.000/mW
ODAXIM"
OOAMINIS
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I A00.OWIMW
1.100A00m"
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TFPRO22.WKI
• FROM: DAVE POKORNEY
MEMO
TO: DICK STOLTZ
SUBJ: COUNTY ROAD TAX INCREMENT FUNDING
DATE: NOVEMBER 30, 1992
Last week we discussed the need for Chaska to provide some
preliminary numbers relative to its potential future tax
increment contribution towards County roads. Our assumption is
that the present tax increment law which allows for the use of .
tax increment dollars to upgrade roads controlled by the County
will continue. As you are aware, Chaska's present redevelopment
plan has established a project for participation with Carver• -
County and budgets $1 million towards these improvements. As•I
have reviewed our tax increment cash flow projections it appears
that Chaska would be in a position to provide the following total
payments:
1997 -
$
400,000
1996 -
$
400,000
1999 -
$
400,000
2000 -
$
400,000
2001 -
$
400,000
2002 -
53,000400
Total
$5,000,000
In making these commitments I would do so with the understanding
that the following roadways would be upgraded':
Phase 2 of C.R. 17 upgrading 1994
Engler Road extended east of C.R. 17 to 212 1994
C.R. 17 upgraded north of Pioneer Trail 1995 -1996
Engler Road extended westerly 1997 -1996
C.R. 11 extended easterly to Jonathan Boulevard - 1996 -2000
As we discussed the City's preference would be that the County
develop a Five Year Capital Improvement Program to fund each of
these roadways during that timeframe and utilize our committed
cash flows to finance long term debt. After you have had a
chance to review these numbers, please feel free to contact me to
arrance a time to meet to discuss these projections further.
J
7
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J
MAP-2s-9s TUE 16:21 F- 0 1
D
ATTN: ��� Ch ka
J � �s
I �
PROJECT:
I CASE N0: TRANSMITTAL
I -
Ne are sending you: [) Drawings C3 Enclosed [] UPS
C3 Specifications C) Separate cover First Class
Shop Drawings C3 Our C) Your Messenger Air
Q D Facsimile
COPIES IDESCRIPTION DATED BY
I .
I
Co For Your Approval For Your Review /Comment E Approved C] NOT Approved
C] For Yo4r Infornation As Requested As Corrected Revise and Resubmi
I REMARKS
I
I
I
I
I Copies To
Sincerely ��
� V ty of Chaska M innesota; on City Hoti P18:4 53319.1962 612- 448 -2851 Phone 612. 448 -9300 FAX
MAR-2s-9
r
D RAFr �
March. 22, 1993 I
Mr. Don Ashworth Mr. Dick Stoltz
City Manager County Administrator '
Chanhassen City Hall Carver County Courthouse
P.O. Sox 147 600 East Fourth Street
Chanhassen, MN 55317 -0147 Chaska, MN 55318 '
Dear Don & Dick: ,
The psrpose of my letter is to provide a general outline
summarizing our understandings concerning implementation of Phase
,
1 of the Eastern Carver County Highway Construction Plan. In
1990 the cities of Chanhassen, Victoria, Chaska and Carver County
jointly developed the Eastern Carver County Transportation Study.
:he study identified future traffic /highway needs based on 2005
'
development forecasts. The plan concluded that a number of-major
CCF3
County highway improvements were necessary in Eastern Carver
County to meeting these future demands. The recommended 1993-
'
2002 program for Eastern Carver County was estimated to cost $0
mil :ion to implement.
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five
'
Recognizing that the full project could not be funded in the
�„ +,, ;;�r•�
��4 a CT •irY
year panning period and, further, that even the minimum program
SO N RCC
cannot be funded 100% by Carver County's existing resources,'the
CSI,=
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cities of Chaska and Chanhassen along with Carver County have
'
developed an alternative funding package and phasing strategies
for implementing the key elements of the Eastern Carver County
' ��AV
higln needs. The first phase of the project would consist of
'
the following improvements which are also shown on Map A:
^
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MAP: -2Z -93 TUE 16 :22
P. IBS
Financing for these improvements would be through a combination
Of County tax levy, State Aid allocation, City tax increment
funds and other City resources. Under Minnesota statutes the
local municipalities can use tax increment funds for roadway
' projects within the districts. in addition, the tax increment
statute 469.175 authorizes the County to require the local
authority to dedicate tax increments to pay for certain County
road improvements.
To begin to implement the initial phase of these highway
improvements the cities of Chanhassen and Chaska along with
Carver County agree in concept to an implementation and financing
plan summarized by the following key elements:
' A. Carver County agrees to construct those roadways
identified in Table A in the 1993 -1995 timeframe.
E. Carver County would contract with engineering consulting
' firms to prepare plans and specifications on these road
projects with representatives of each of the three
participating governmental entities serving on a '
' coordinating committee for the projects.
C. The cities of Chaska and Chanhassen would assume
responsibility for acquiring the necessary right -of -way
for projects within their respective communities. For
projects along the joint border between the two
corrn►wnities the cities would share equally the cost of
total rig::t -of -way acquisitions.
D. Carver County would agree to contribute a total of
$6,569,000 towards the projects which would be funded
through the following allocations:
' County
State Aid County
Year Allocation Tax Levy Total
1, -0- $ 959 8 000 51
1994 $1, 323, 000 200,000 2
000
1995 1 1,127,000 2
1996 475,000 655,000 1 1 130,000
' E. The City of Chaska would agree to contribute $400,000 per
year of tax increment revenues from 1997 through 2001
towards financing of the project. The City of Chaska
would agree to sell bonds in 1994 in order to make a cash
payment to the County of approximately $1,516,000.
Repayment of this debt would come from Chaska's $400,000
annual commitment beginning in 1997.
F. Chanhassen would agree to contribute $1,000,000 of tax
increment in 3993 and $400,000 annually of tax increment
revenues beginning in 1996 through 1999. Chanhassen
would agree to sell debt in order to make a payment of
approximately $ in 1994 for construction of the
roads. As with Chanhassen the debt would be repaid from
its $400,000 annual tax increment contribution. '
G. Chanhassen would agree to an additional contribution of
$1.8 million in the 2000 -2002 timeframe if they are not '
required by State statute to cancel their tax increment
districts prior to that timeframe. If, though, the
districts are cancelled Carver County would agree to '
contribute an additional tax levy of $1.8 million
generated in the 2000 -2002 timeframe. This additional
County tax levy would result from new revenues accruing
to the County as a result of the'cancelling of the '
Chanhassen tax increment districts.
It :s understood that under this scenario a total of $12,969,000 '
would be available and could fund the construction of up to
$10,700,000 of highway improvements in the 0 93 -95 timeframe.
Further, it is understood that the three parties would agree to ,
execute a joint agreement outlining the details of these
understandings along with specific contracts for joint
participation in each of the individual County projects.
The efforts to date by each of the parties clearly exhibit the ,
benefits of developing a cooperative attitudes among local
government units. Hopefully, this draft accurately reflects the '
discussions we have had to date, and if you have any questions or
c;.mr-eats please feel free to contact me at your convenience.
Sincerely, '
Dave Pokorney
City Administrator '
DP:jai
c: Charles LeFevere, Holmes s Graven, 470 Pillsbury Center, '
Mpls., MN 55402
1
j�•I.L.".: 1 \. "-71� . ���K- ''�,�'�,r +7llrZl i �n���•��•i!!yC�• �.�.�'•
ALTERNATIVE ONE
1"3 - 1"S
WGIIWAY IMPROVEMENT PROGRAM
FOR
COUNTY HIGHWAY CORRIDORS
IN
C"ANFIASSEN C"ASKA
EAST OF TRUNK F*GHWAY-41
c
We" 10011000 oweftraslaw orpsowoo"
4p -j; Sl kwtaftv" mm am
Id
3
I-
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MR
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I
03/15/93 09:03 (RESDEPT ] FA
JM8 -4
t I
1
1 A bill for an act
2 relating to public financing for cleanup of polluted
3 lands and for manufacturing development; authorising
4 manufacturing tax increment financing districts;
5 modifying the computation of original tax capacity;
6 imposing a state tax on contaminated properties;
7 establishing a grant program for cleanup of polluted
8 lands; allowing use of tax increments for
9 environmental insurance and indemnifications
10 authorizing the cities of Minnetonka and Hopkins to
11 establish a tax increment financing districts;
12 establishing a dedicated account; appropriating money;
13 amending Minnesota Statutes 1992, sections 273.11,
14 subdivision 1, and by adding a subdivision; 275.065,
15 subdivision 3; 276.04, subdivision 2; 469.174,
16 subdivisions 19 and 20; 469.176, subdivision 4e;
17 469.177, subdivision 1; proposing coding for new law
18 in Minnesota Statutes, chapters 116, 270, and 469.
19 BE IT ENACTED BY TEE LEGISLATURE OF THE STATE OF MINNESOTA:
20 ARTICLE 1
21 CONTAMINATION TAX
22 Section 1. (270.91) (IMPOSITION; TAX RATE.)
23 A state tax is annually imposed on taxable real property in
24 this state equal to the following percentage of the
25 contamination value of the property:
26 (1) two percent for class 3 and 5 property under section
27 273.13; and
28 (2) one -half of the applicable class rate under section
29 273.13 for all other types of properties.
30 Sec. 2. (270.92) (DEFINITIONS.)
31 Subdivision 1. (SCOPE OF APPLICATION.) For purposes of
32 sections 1 to 8, the following terms have -the meanings given.
1
I I
11
Fi
L
1
7 7
�l
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
26
29
30
31
32
33
34
35
36
03/15/93 09:03 (RESDEPT ] FA JM8 -4
Subd. 2. (ASSESSMENT YEAR.] "Assessment year" means the
assessment year for purposes of general ad valorem property
taxes.
Subd. 3. (CONTAMINANT.) "Contaminant" means a harmful
substance as defined in section 115B.25, subdivision 7a.
Subd. 4. (CONTAMINATED MARKET VALUE.] "Contaminated market
value" is the amount determined under section 3.
Subd. S. (PRESENCE OF CONTAMINANTS.] "Presence of
contaminants on the property" includes the release or threatened
release, as defined in section 1159.02, subdivision 15, of
contaminants on the property.
Subd. 6. (RESPONSE ACTION PLAN.] "Response action plan"
means either a development action response plan, as defined in
section 469.174, subdivision 17, or a voluntary response action
plan under section 115B.175, subdivision 3 that has been
approved by the commissioner of the pollution control agency
under section 115B.17.
Sec. 3. (270.93] (TAX BASE; CONTAMINATION VALUE.]
(a) The contamination value of a parcel of property is the
amount of the market value reduction, if any, that is granted
for general ad valorem property tax purposes for the assessment
Year because of the presence of contaminants. These reductions
in market value include those granted by a court, by a board of
review, by the assessor upon petition or request of a property
owner, or by the assessor. Reductions granted by the assessor
are included only if the assessor reduced the property's market
value for the presence of contaminants using an appraisal method
or methods that are specifically designed or intended to adiust
for the valuation effects of the presence of contaminants. The
first $10,000 of a reduction for a parcel is excluded from
contamination value.
(b) Nothing in sections 1 to 8 shall be construed to affect
or change the manner or method that applies in valuing
properties under chapter 273 or otherwise for purposes of
imposing the general ad valorem property tax.
Sec. 4. (270.94] (EXEMPTION.)
ze
2
03/15/93 09:03 (RESDEPT ] FA JMB -4
1 (a) The tax imposed by sections 1 to 8 does not apply to
2 the contamination value of a parcel of property attributable to
3 contaminants that were addressed by a response action plan for
4 the property, if the commissioner of the pollution control
5 agency has certified that all the requirements of the plan have
6 been satisfied. This exemption applies beginning for the first
7 assessment.year after the commissioner of the pollution control
8 as ency certifies that the response action plan has been
9 completed.
10 4b) To qualify under this section, the property owner must
11 provide the assessor with a copy of the certification by the
12 commissioner of the pollution control agency of the completion
13 of the response action plan.
14 Sec. S. 1270.951 (PAYMENT; ADMINISTRATION.]
15 The tax imposed under sections 1 to 8 is payable at the
16 same time and manner as. the'regular ad valorem property tax.
17 The tax is subject to the penalty, interest, lien, forfeiture,
18 and any other rules for collection of the regular ad valorem
19 property tax. If a reduction in market value that creates
20 contamination value is granted after the ad valorem property tax
'21 has been paid, the contamination tax must be subtracted from the
22 amount to be refunded to the property owner.
23 Sec. 6. 1270.961 (DUTIES.)
24 Subdivision 1. (ASSESSORS.] Each assessor shall notify the
25 county auditor of the contamination value for each parcel of
26 property within the assessor's Jurisdiction. The assessor shall
27 provide notice of the contamination value to the property owner
28 by the later of (1) June 1 of the assessment year or (2) 30 days
29 after the reduction in market value is finally granted.
30 Subd. 2. (AUDITOR.] The county auditor shall prepare a
31 list of the contamination values for all property located in the
32 county. The commissioner shall prescribe the form of the
33 listinc. The auditor shall include the amount of the state
34 contamination tax on the contamination value for the assessment
35 Year on the regular ad valorem property tax statement under
36 section 276.04.
s`A
3
r
I -
1
F
u
03/15/93 09:03
(RESDEPT ) FA
JMS -4
1 Subd. 3. (TREASURER.) The county treasurer shall pay the
2 proceeds of the tax, less the amount retained by the count v for
3 the cost of administration undeir-; ection 8, to the commissioner
4 at the same times and in the same manner provided for the ad
5 valorem property tax settlements.
6 Subd. 4. (COURT ORDERED REDUCTIONS IN VALUE.) If a court
7 orders a reduction in market value for purposes of the ad
8 valorem property tax because of the presence of contaminants on
9 the property, the court shall include in its order an offset for
10 payment of the state tax on contaminated value under sections 1
11 to S.
12 Sec. 7. (270.97) (DEPOSIT OF REVENUES.)
13 The commissioner shall deposit all revenues derived from
14 the tax, interest, and penalties rezeived from the county in the
15 contaminated site cleanup and development account in the General
16 fund.
17 Sec. 8. (270.98) (LOCAL ADMINISTRATIVE COSTS.)
18 The county shall retain five percent of the total revenues
19 derived from the tax, including interest and penalties, as
20 compensation for administering the tax. The county board may
21 reimburse municipalities for the services provided by assessors
22 employed by the municipality in administering sections to 12.
23 Sec. 9. Minnesota Statutes 1992, section 273.11,
24 subdivision 1, is amended to read:
25 Subdivision 1. (GENERALLY.) Except as provided in
26 snbdi •i=ier:s- 67- 87-9T- k4T- and -64 this section or section 273.17,
27 subdivision 1, all property shall be valued at its market
28 value. The market value as determined pursuant to this section
29 shall be stated such that any amount under $100 is rounded up to
30 $100 and any amount exceeding $100 shall be rounded to the
31 nearest $100. In estimating and determining such value, the
32 assessor shall not adopt a lower or different standard of value
33 because the same is to serve as a basis of taxation, not shall
34 the assessor adopt as a criterion of value the price for which
35 such property would sell at a forced sale, or in the aggregate
36 with all the property in the town or district; but the assessor
4
03/15/93 09 :03 1 (RESDEPT ) FA JMS -4 1'.
1
shall value each article or description of property by itself,
2
and at such sum or price as the assessor believes the same to be
3
fairly worth in money. The assessor shall take into account the
4
effect on the market value of property of environmental factors
S
in the vicinity of the property. In assessing any tract or lot
6
of real property, the value of the land, exclusive of structures
,
7
and improvements, shall be determined, and also the value of all
8
structures and improvements thereon, and the aggregate value of
'
9
the property, including all structures and improvements,
10
excluding the value of crops growing upon cultivated land. In
'
11
valuing real property upon which there is a mine or quarry, it
12
shall be valued at such price as such property, including the
,
13
mine or quarry, would sell for a fair, voluntary sale,
14
cash. In valuing real property which is vacant, platted
15
property shall be assessed as provided in subdivision 14. All
16
17
property, or the use thereof, which is taxable under section
272.01, 2,
subdivision or 273.19, shall be valued at the market
18
value of such property and not at the value of a leasehold
19
estate in such property, or at some lesser value than its market
'
20
value.
21
Sec. 10. Minnesota Statutes 1992, section 273.11, is
'
22
amended by adding a subdivision to read:
23
Subd. 1S. (VALUATION OF CONTAMINATED PROPERTIES.I a In
24
determining the market value of property containing
25
contaminants, the assessor may not consider the effect of the
'
26
presence or possible presence of contaminants on the property's
27
market value, unless one of the following has occurred:
'
28
(1) there is a development response action plan for the
29
property that has been approved by the commissioner of the
,
30
pollution control agency;
31
(2) the property has been listed by the pollution control
32
agency on the permanent list of priorities under the
'
33
34
environmental response, compensation, and compliance account
by 1158.20;
'
established section or
35
(3) the contaminants are asbestos and the property owner
36
has in place an abatement _plan for enclosure, removal or
'
03/15/93 09:03 (RESDEPT J FA JM8 -4
1
encapsulation of the asbestos. To qualify under this clause the
2
Proyerty owner must - either have:: - entered into a binding contract
3
with a licensed contractor for completion of the work or have
4
obtained a license from the commissioner of health and begun the
'
5
6
work. The abatement plan must provide for completion of the
work
within a reasonable time period, as determined by the
7
assessor.
8
(b) To qualify under paragraph (a), the property owner must
9
provide the assessor with a copy of (1) the approved response
10
action plan, (2) documents establishing that the property has
11
been included on the list of priorities under the environmental
'
12
response, compensation, and compliance account, or (3) a coflv of
13
the asbestos abatement plan and contract for completion of the
14
work or the owner's license to perform the work.
15
c For purposes of this subdivision, "contaminants" and
16
"response action plan" have the meaninas given in section 2.
17
Sec. 11. Minnesota Statutes 1992, section 275.065,
18
19
subdivision 3, is amended to read:
Subd. 3.
(NOTICE OF PROPOSED PROPERTY TAXES.) (a) The
20
county auditor shall prepare and the county treasurer shall
'
21
deliver after November 10 and on or before November 24 each
22
year, by first class mail to each taxpayer at the address listed
23
on the county's current year's assessment roll, a notice of
24
proposed property taxes and, in the case of a town, final
25
property taxes.
26
(b) The commissioner of revenue shall prescribe the form of
27
the notice.
28
(c) The notice must inform taxpayers that it contains.the
29
amount of property taxes each taxing authority other than a town
30
proposes to collect for taxes payable the following year and,
'
31
for a town, the amount of its final levy. It must clearly state
32
that each taxing authority, other than a town or special taxing
33
district, will hold a public meeting to receive public testimony
34
on the proposed budget and proposed or final property tax levy,
35
or, in case of a school district, on the current budget and
36
tax levy. It must clearly state the time
proposed property and
6
03/15/93 09:03 (RESDEPT ] FA JMS -4
1
place of each taxing authority's meeting and an address where
2
comments will be received by mail.
3
(d) The notice must state for each parcel:
4
(1) the market value of the property as defined under
5
section 272.03, subdivision 8, for property taxes payable in the
6
following year and for taxes payable the current.year; and, in
'
7
the case of residential property, whether the property is
8
classified as homestead or nonhomestead. The notice must
9
clearly inform taxpayers to the market values
'
of the years which
10
apply and that the values are final values;
it
(2) by county, city or town, school district, the sum of
'
12
the special taxing districts, and as a total of the taxing
13
authorities, including special taxing districts, the proposed
14
or, for a town, final net tax on the property for taxes payable
15
the following year and the actual tax for taxes payable the
16
current year. In the case of a parcel where tax increment or
17
the fiscal disparities areawide tax applies, the proposed tax
'
18
levy on the captured value or the proposed tax levy on the tax
19
capacity subject to the areawide tax must each be stated
'
20
separately and not included in the sum of the special taxing
21
districts; and
22
(3) the increase or decrease in the amounts in clause (2)
'
23
24
from taxes payable in the current year to proposed or, for a
final the following
'
town, taxes payable year, expressed as a
25
dollar amount and as a percentage.
26
(e) The notice must clearly state that the proposed or
'
27
final taxes do not include the following:
26
(1) special assessments;
'
29
(2) levies approved by the voters after the date the
30
proposed taxes are certified, including bond referenda, school
31
district levy referenda, and levy limit increase referenda;
32
(3) amounts necessary to pay cleanup or other costs due to
'
33
a natural disaster occurring after the date the proposed taxes
34
are certified;
'
35
(4) amounts necessary to pay tort judgments against the
36
taxing authority that become final after the date the proposed
7
i
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1
taxes are certified; and
2
(5) any additional amount levied in lieu of a local sales
3
and use tax, unless this amount is included in the proposed or
'
4
final taxes and
5
(6) the contamination tax imposed on properties which
'
6
received market value reductions for contamination
7
(f) Except as provided in subdivision 7, failure of the
'
8
county auditor to prepare or the county treasurer to deliver the
9
notice as required in this section does not invalidate the
10
proposed or final tax levy or the taxes payable pursuant to the
11
tax levy.
'
12
13
(9) If the notice the taxpayer receives under this section
lists the
property as nonhomestead and the homeowner provides
14
satisfactory documentation to the county assessor that the
'
15
property is owned and has been used as the owner's homestead
16
prior to June 1 of that year, the assessor shall reclassify the
'
17
property to homestead for taxes payable in the following year.
18
(h) in the case of class 4 residential property used as a
'
19
residence for lease or rental periods of 30 days or more, the
20
taxpayer must either:
'
21
(1) mail or deliver a copy of the notice of proposed
22
property taxes to each tenant, renter, or lessee; or
23
(3) post a copy of the notice in a conspicuous place on the
24
premises of the property.
25
The notice must be mailed or posted by the taxpayer by
'
26
November 27 or within three days of receipt of the notice,
27
28
whichever is later. A taxpayer may notify the county treasurer
the the
of address of taxpayer, agent, caretaker, or manager of
29
the premises to which the notice must be mailed in order to
'
30
fulfill the this
requirements of paragraph.
31
Sec. 12. Minnesota Statutes 1992, section 276.04,
'
32
subdivision 2, is amended to read:
33
Subd. 2. (CONTENTS OF TAX STATEMENTS.) (a) The treasurer
'
34
shall provide for the printing of the tax statements. The
35
commissioner of revenue shall prescribe the form of the property
36
tax statement and its contents. The statement must contain a
8
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1
tabulated statement of the dollar amount due to each taxing
2
authority from the parcel of real property for which a'
3
particular tax statement is prepared. The dollar amounts due
4
the county, township or municipality and school district must be
'
5
separately stated. The amounts due other taxing districts, if
6
any, may be aggregated. The amount of the state tax on
'
7
contamination value imposed under sections 270.91 to 270.98, if
8
any, must also be separately stated. The dollar amounts,
9
including the dollar amount of any special assessments, say be
'
10
rounded to the nearest even whole dollar. For purposes of this
11
section whole odd - numbered dollars spay be adjusted to the next
12
higher even - numbered dollar. The statement shall include the
13
following sentence, printed in upper case letters in boldface
,
14
print: 'TEE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY
15
TAX REVENUES. THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX
'
16
BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF
17
GOVERNMENT."
I
18
(b) The property tax statements for manufactured homes and
19
sectional structures taxed as personal property shall contain
'
20
the same information that is required on the tax statements for
21
real property.
'
22
(c) Real and personal property tax statements must contain
23
the following information in the order given in this paragraph.
24
The information must contain the current year tax information in
25
the right column with the corresponding information for the
26
previous year in a column on the left:
27
(1) the property's estimated market value as defined in
8;
28
section 272.03, subdivision
29
(2) the property's gross tax, calculated by multiplying the
30
property's gross tax capacity times the total local tax rate and
'
31
adding to the result the sum of the aids enumerated in clause
32
(3);
,
33
(3) a total of the following aids:
34
(1) education aids payable under chapters 124 and 124A;
35
(ii) local government aids for cities, towns, and counties
36
under chapter 477A; and
1
1
1
1
1
0
IJ
1
1
1
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1 (iii) disparity reduction aid under section 273.1398;
2 (4) for homestead residential and agricultural properties,
3 the homestead and agricultural credit aid apportioned to the
4 property. This amount is obtained by multiplying the total
5 local tax rate by the difference between the property's gross
6 and net tax capacities under section 273.13. This amount must
7 be separately stated and identified as "homestead and
8 agricultural credit." For purposes of comparison with the
9 previous year's amount for the statement for taxes payable in
10 1990, the statement must show the homestead credit for taxes
it payable in 1989 under section 273.13, and the agricultural
12 credit under section 273.132 for taxes payable in 1989=
13 (5) any credits received under sections 273.119; 273.123;
14 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
15 4738.10, except that the amount of credit received under section
16 273.135 must be separately stated and identified as "taconite
17 tax relief ";
18 (6) the net tax payable in the manner required in paragraph
19 (a); and
20 (7) any additional amount of tax authorised under sections
21 124A.03, subdivision 2a, and 275.61. These amounts shall be
22 listed as "voter approved referenda levies."
23 The commissioner of revenue shall certify to the county
24 auditor the actual or estimated aids enumerated in clauses (3)
25 and (4) that local governments will receive in the following
26 year. In the case of a county containing a city of the first
27 class, for taxes levied in 1991, and for all counties for taxes
28 levied in 1992 and thereafter, the commissioner must certify
29 this amount by September 1.
30 Sec. 13. (EFFECTIVE DATE.)
31 Sections 1 to 12 are effective beginning with taxes
32 assessed in 1994, payable in 1995 and apply to reductions in
33 market value in effect for the year regardless of when they were
34 granted.
35 ARTICLE 2
36 CONTAMINATION CLEANUP GRANTS
10
03/15/93 09:03 (RESDEPT ) FA JMS -4
1 Section 1. (116.401) (CREATION OF ACCOUNT.)
2 A contaminated site cleanup and development account is
3 created in the general fund. Money in the account may be used,
4 as appropriated by law, to make grants as provided in section 4
5 and to pay for the commissioner's costs in reviewing
6 applications and making grants.
7 Sec. 2. (116.402) (DEFINITIONS.)
8 Subdivision 1. (SCOPE OF APPLICATION.) For purposes of
9 sections 1 to 8, the following terms have the meanings given.
10 Subd. 2. (AGENCY.) "Agency" is the Minnesota pollution
11 control agency.
12 Subd. 3. (CLEANUP COSTS.) 'Cleanup costs" or "costs" mean
13 the cost of "removal," "remedy," or "remedial action" as those
14 terms are defined in section 11SB.02s environmental audits:
15 pollution tests; preparation and implementation of response
16
17
18 contamination.
19 Subd. 4. (COMMISSIONER.) "Commissioner" is the
20 commissioner of the pollution control agency.
21 Subd. S. (CONTAMINANT.) "Contaminant" means a harmful
22 substance as defined in section 11SS.25, subdivision 7a.
23 Subd. 6. (DEVELOPMENT AUTHORITY.) "Development authority"
24 includes a statutory or home rule charter city, housing and
25 redevelopment authority, economic development authority, and a
26 port authority.
27 Subd. 7. (METROPOLITAN AREA.) "Metropolitan area" means
28 the seven county metropolitan area, as defined in section
29 473.121, subdivision 2.
30 Subd. 8. (MUNICIPALITY.) "Municipality" means the
31 statutory or home rule charter city, town, or, in the case of
32 unorganized territory, the county in which the site is located.
33 Subd. 9. (RESPONSE ACTION PLAN.) "Response action plan"
34 means either a "development action response plan" that meets the
35 requirements of section 469.174, subdivision 17, or a "voluntary
36 response action plan" under section 1158.175, subdivision 3 that
E
1
E
III
I I
11 '
I1 03/15/93 09:03 (RESDEPT 1' M JM8 -4
1 12
1
has been approved by the commissioner under section 1158.17,
2
subdivision 14.
3
4
Sec. 3. 1116.4031 (GRANT APPLICATIONS.]
Subdivision
1. (APPLICATION REQUIRED.) To obtain a
5
contamination cleanup development errant, the development
'
6
authority shall apply to the commissioner. The governing body
7
of the municipality must approve, by resolution, the application.
'
8
Sub_d. 2. (REQUIRED CONTENT.] The commissioner shall
9
Prescribe and provide the application form. The application
'
10
must include at least the following information:
11
11) identification of the site;
'
12
. (2) the proposed or approved response action plan for the
13
site;
'
14
13) the results of encineerina and other tests showing the
15
nature and extent of the release of contaminants on site or the
16
17
threatened release of contaminants on to the sites
a detailed estimate, along with necessary supporting
18
evidence, of the total cleanup costs for the site;
19
15) an appraisal of the current market value of the
20
property, separately taking into account the effect of the
21
contaminants on the market value, prepared by a qualified
22
independent appraiser using accepted appraisal methodology;
23
(6) an assessment of the immediate or long term potential
24
hazard to the public health and safety resulting from a failure
25
to implement the response action plan;
26
(7) an assessment of the development potential or likely
'
27
use of the site after completion of the response action plan,
26
including any specific commitments from third parties to
29
construct improvements on the site;
30
(8) the manner in which the municipality will meet the
31
local match requirement; and
32
19) any additional information or material that the
'
33
commissioner prescribes.
34
Sec. 4. (116.404) (GRANTS.]
35
Subdivision 1. (AUTHORITY.) The agency may make a grant to
36
an applicant development authority to pay for up to one -half of
1 12
03/15/93 09:03 ,(RESDEPT ] !A JM8 -4
1 the cleanup costs for a qualifying site. The determination of
2 whether to make a grant for a qualifying site is within the sole
3. discretion of the agency, subject to the process provided by
4 this section and available unencumbered money in the
5 appropriation. The agency's decisions and application of the
6 priorities under section 5 are not subject to Judicial review,
7 except for abuse of discretion.
8 Subd. 2. (QUALIFYING SITES.] A site qualifies for a grant
9 under this section, if the following criteria are get:
10 (1) the site is not scheduled for funding under the
11 Environmental Response, Compensation, and Liability Act of 1988,
12 United States Code, title 42, section 9601, et seq.; the
13 environmental response, compensation, and compliance account
14 under section 11SS.20; the petroleum tank release cleanup act
15 under chapter 115C; the leaking underground storage tank trust
16 fund under United States Code, title 42, section 6691b; or
17 another state or federal funding source;
18 (2) the appraised value of the site after adjusting for the
19 effect on the value of the presence or possible presence of
20 contaminants using accepted appraisal methodology is less than
21 one - quarter of the estimated cleanup costs for the site; and
22 (3) if the proposed cleanup is completed, it is expected
23 that the site will be improved with buildings or other
24 improvements and these improvements will provide a substantial
25 increase in the property tax base within a reasonable period of
26 time or the site will be used for an important publicly owned or
27 tax exempt facility.
28 Sec. S. [116.405] (PRIORITIES.)
29 Subdivision 1. (PRIORITIES.) (a) The legislature expects
30 that applications for grants will exceed the available
31 appropriations and the agency will be able to provide grants to
32 only some of the applicant development authorities.
33 (b) If applications for grants for qualified sites exceed
34 the available appropriations, the agency shall make grants for
35 sites, that in the agency's iudgment, provide the highest return
36 in public benefits for the public costs incurred and that most
13
s
I to
i
1 14
'
03/15/93 09:03 (RESDEPT FA JMS -4
1
all the requirements provided by law. In making this judgment,
2
the agency shall consider the.folloving factors:
1
3
4
-1) the potential threat to public health and safety that
would be
reduced or eliminated by completion -of the proposed
5
response action plan;
6
(2) the potential increase in the property tax base of the
7
local taxing Jurisdictions, considered relative to the fiscal
'
8
needs of the Jurisdictions, that will result from developments
9
that will occur because of completion of the response action
'
10
plan;
it
13] the social value to the community of the cleanup and
'
12
redevelopment of the site, including the importance of
13
development of the proposed public facilities on the site;
t
14
(4) the probability that the site will be cleaned up
15
without use of government money in the reasonably foreseeable
16
17
future;
(5) the amount of cleanup costs for the site; and
18
19
(6) the amount of the commitment of municipal or other
local
resources to pay for the cleanup costs
2,0
The factors are not listed in a rank order of priority;
'
21
rather the agency may weigh each factor, depending upon the
22
facts and circumstances, as the agency considers appropriate
23
The agency may consider other factors that affect the net return
24
of public benefits for completion of the response action plan
'
25
The agency, notwithstanding the listing of priorities and the
26
goal of maximizing the return of public benefits, shall make
'
27
grants that distribute available moneys to sites both within and
28
outside of the metropolitan area. Unless sufficient
29
applications are not received for qualifying sites outside of
30
the metropolitan area, at least, .e percent of the grants must
'
31
be made for sites located outside of the metropolitan area.
32
Subd. 2. (PROCESS; LEGISLATIVE COMMISSION.] In making
33
grants, the commissioner shall establish regular application
34
deadlines in which grants will be authorized from all or part of
35
the available appropriations of money in the account Within 90
36
days after the application deadline, the commissioner shall
1 14
03/15/93 Od:03 (RESDEPT ] FA JM8 -4
1 submit to the legislative
commission on waste management the
2 proposed grants,
including the applications and any appropriate
3 supporting information, for review and comment. The commission
response costs for the site and (2) administrative costs for the
4 shall forward any
comments on the proposed grants within 60
district or subdistrict. The district or subdistrict must be
5 days. The agencv
after considering the commission comments
decertified when an amount of tax increments equal to no more
6 shall make grants within 30 days for the application cycle.
7 Sec. 6. (116.406] (LOCAL BATCH REOUIREKENT.]
8 (a) In order to Qualify for a grant under sections 1 to 8, '
9 the municipality must pay for at least one -half of the cleanup
10 costs as a local match. At least one -half of this local match'
11 must be paid from the municipality's general fund, a property
12 tax levy for that purpose, or other unrestricted money available
13 to the municipality (excluding tax increments). The rest of"the
14 local match may be paid with tax increments or any other money
15 available to the municipality. '
16 1b) If the development authority establishes a tax
17 increment financing district or hazardous substance subdistrict
18 on the site to pay for up to one -half of the local match
19 requirement, the district or subdistrict is not subject to the '
20 state aid reductions under section 273.1399. In order to
21 qualify for the exemption from the state aid reductions, the '
22 municipality must elect, by resolution, on or before the request
23
for certification is filed that all tax increments from the
24
district or subdistrict will be used exclusively to pay (1) for
25
response costs for the site and (2) administrative costs for the
26
district or subdistrict. The district or subdistrict must be
27
decertified when an amount of tax increments equal to no more
the response for
,
28
than one- cruarter of costs the site and the
29
administrative costs for the district or subdistrict have been
30
received.
r
31
Sec. 7. (116.407] (LIABILITY OR RESPONSIBLE PARTIES.]
32
Subdivision 1. (LIABILITY OF RESPONSIBLE PARTIES.] Nothing
'
33
in sections 1 to 8 limits the authority of the municipality, the
34
agency, the attorney general, and other appropriate state or
,
35
federal environmental regulators or authorized persons to
36
enforce state and fade ;al environmental laws against responsible
'
15
r1
03/15/93 09:03
(RESDEPT 1 FA JM8 -4
r
n
1 persons and nothing in sections 1 to 8 reduces or eliminates the
2 liability of responsible.= persons�..under chapter 1158 The
3 municipality shall exercise all reasonable efforts to recover
4 amounts due from responsible persons.
5 Subd. 2. (DISPOSITION OF RECOVERED AMOUNTS.) Amounts
6 recovered from responsible persons, net of the cost of recovery,
7 and all other amounts otherwise received by the municipality,
8 the aaencv, or the attorney general for the site shall be used
9 to reimburse the municipality and the account in proportion to
10 their respective payments for response costs. If tax increments
11 were used to pay part of the cost, the municipality shall
12 apportion its share of the amount recovered from responsible
13 persons to tax increments and to other sources of municipal
14 money relative to the respective amounts spent for response
15 costs for the site. The amount apportioned to tax increments
16 must be treated by the municipality and development authority as
17 an excess increment under section 469.176, subdivision 2.
18 Sec. B. 1116.4081 (RULE MAKING AUTHORITY.)
19 The agency may make administrative rules under the
20 administrative procedures act, chapter 14, to implement the
21 provisions of sections 1 to 8.
22 Sec. 9. (APPROPRIATION.)
23 $....... is appropri to the pollution control aaencv
24 from the contaminated site cleanup and development account in
25 the general fund to make grants under sections 1 to'8 and to pay
26 for the costs of administerina the grant proaram under sections
27 1 to S. This appropriation is for fiscal Year 1995 and remains
28 available and does not cancel.
29 ARTICLE 3
30 TAX INCREMENT FINANCING
31 Section 1. Minnesota Statutes 1992, section 469.174,
32 subdivision 19, is amended to read:
33 Subd. 19. (SOILS CONDITION DISTRICTS.) 1a) "Soils
34 condition district" means a type of tax increment financing
35 district consisting of a project, or portions of a project,
36 within which the authority finds by resolution that the
16
I
following conditions exist:
2
(1) less- than- 79- pereent -ef- the- pareeSs - in - the distriet -ere
3
eeeapied- bY- ba4idiags =- streetss-s;t4iitiesr-es - ether
4
improvements;
5
fit unusual terrain the presence of hazardous substances,
'
6
pollution or contaminants, or soil deficiencies for 80 percent
` 7
of the acreage in the district require substantial filling,
8
grading, removal or remedial action, or other physical
'
9
preparation for use;
'
10
f33 (2 the estimated cost of the physical preparation
11
under clause f3} JU, but excluding costs directly related to
12
roads as defined in section 160.01 and local improvements as
'
13
described in sections 429.021, subdivision 1, clauses (1) to
14
(7), (11), and (12), and 430.01, when- added -te- the -Esir- market
,.
15
value -of- the - land - upon- ine&uskon -in- the- distriet exceeds the
16
anticipated fair market value of the land upon before completion
'
17
of the preparation.
is
(b) An area does not qualify as a soils condition district
'
19
if it contains a wetland, as defined in section 1030.00S, unless
20
the development agreement prohibits draining, filling, or other
'
21
alteration of the wetland or other binding legal assurances for
22
preservation of the wetland are provided.
23
(c) If the district is located in the metropolitan area,
'
24
the proposed development of the district in the tax increment
be the land
'
25
financing plan must consistent with municipality's
26
use plan adopted in accordance with sections 473.851 to 473.872
27
and reviewed by the metropolitan council under seetion 473.175.
28
if the district is located outside of the metropolitan area, the .
29
proposed development of the district must be consistent with the
'
30
municipality's comprehensive municipal plan.
31
fdf- tie pareei- shaii- be- iaeiuded -in- the- distriet- erkiess -the
32
antheritY- has- eesseinded- a;s- agreesier,t -er- agreements -fer -the
33
deveiepmest- ef- at- ieest- 39- perees�t -ef- the - acreage- hsvis�q -tlse
'
34
nssnseni- soli -er- terrain- defieier�e - - lhe - agreement - mast
35
provide- reeenese -for- the- antherity -if- the- deseiepm -is -suet
'
36
eempietedr
17
'
5 .
03/15/93 09:03 -
(RESDEPT ] FA JMB 4
1
Sec. 2. Minnesota Statutes 1992, section 469.174,
2
subdivision 20, is amended to r*&A.,,.�
'
3
Subd. 20. (INTERNAL REVENUE CODE.) "Internal Revenue Code"
4
means the Internal Revenue Code of 1986, as amended through
'
5
December 31, 9988 1992
6
Sec. 3. Minnesota Statutes 1992, section 469.176,
'
7
8
subdivision 4e, is amended to read:
Subd. 4e.
(HAZARDOUS SUBSTANCE SUBDISTRICTS.) The
9
additional tax increment received by the municipality from a
'
10
hazardous substance subdistrict as a result of a reduction in
11
original net tax capacity pursuant to section 469.174,
'
12
subdivision 7, paragraph (b), or as a result of the extension of
13
the period for collection of tax increment from a hazardous
'
14
substance site or subdistrict provided for in subdivision 1,
15
paragraph (g), may be used only to pay or reimburse the costs
'
16
of: (1) removal actions or remedial actions with respect to
17
hazardous substances or pollutants or contaminants or petroleum
16
releases affecting or which may affect the designated hazardous
19
substance site; (2) pollution testing, demolition, and soil
'
20
21
compaction correction necessitated by the development response
action plan for the designated hazardous substance sitef and (3)
'
22
23
purchase of environmental insurance or deposits to a guaranty
fund, liability
relating only to or response costs for land in
24
the subdistrict; and (4) related administrative and legal costs,
25
including costs of review and approval of development response
26
action plans by the pollution control agency and litigation
'
27
expenses of the attorney general.
28
Sec. 4. (469.1764) (MANUFACTURING DISTRICT.)
29
Subdivision 1. (AUTHORIZATION.) An authority may establish
30
manufacturing districts within which the powers of tax increment
31
financing as provided in sections 469.174 to 469.179 may be
32
exercised. Except as otherwise provided in this section, =the
33
provisions of sections 469.174 to 469.179 apply to the district.
34
Subd. 2. (DISTRICT.) For the purposes of exercising tax
35
_increment financing powers under this section, "manufacturing
36
district means a district that is an economic development
18
I
district and the development authority, by resolution, elects to
2
have the provisions of this section apply. The election must be
3
made on or before the first request for certification of the
4
district is made. The election is irrevocable.
S
Subd. 3. (EXEIKPTION.j Section 273.1399 does not apply to a
'
6
district established under this section.
7
Subd. 4. [EDUCATION AID REDUCTION.] For each school
'
8
district in which a manufacturing district is located, the
9
commissioner of education shall estimate the increase in state
10
education aid resulting from the use of tax increment financina
11
in the manufacturina district on an annual basis. The
12
commissioner shall reduce the amount of state education aid to
'
13
be paid to the school district by the amount of the estimate.
14
Subd. 5. (APPROVAL.) The authority may not use tax
,
15
increment financing in a manufacturina district until the tax
16
increment financing plan is approved by the county and the
,
17
school district in which the manufacturina district is proposed
18
to be located. Modification of a tax increment financina plan
,
19
must also be approved by the county and school district.
20
Subd. 6. (POOLING PROHIBITED.) Except for costs incurred
'
21
under section 469.176, subdivision 4h, or for other .
22
administrative expenses, all revenue derived from tax increments
,
23
paid by properties in a manufacturina district must be spent on
24
25
activities in the district or to pay bonds, to the extent that
the the bonds finance
'
proceeds of were used to activities in the
26
district.
27
Sec. S. (469.17651 (GUARANTY FUND.)
'
28
Subdivision 1. (AUTHORITY TO ESTABLISH-1 An authority may
29
establish and maintain a guaranty fund or funds. Money in the
,
30
guaranty fund is available, under the terms and conditions that
31
the development authority establishes, to indemnify or hold
32
harmless a person from liability for remediation costs under a
33
state or federal environmental law, regulation, rulinqp order or
'
34
decision.
35
Subd. 2. (ELIGIBLE PERSON.] The authority may agree to
'
36
pledge money in the Guaranty fund to indemnify a person whose
19
'
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03/15/93 09:03 (RESDEPT ) FA JM8 -4
1 liability arises out of use, ownership, occupancy, or financing
2 of a Property in the subdistrict or district.
3 Subd. 3. (TER The authority shall
MS`
4 determine by resolution or by agreement with the person the
. .5 terms and conditions under which money in the guaranty fund will
6 be used to indemnify or hold harmless the person. The authority
7 may not agree to indemnify a person from liability for
8 contamination caused by the person. The maximum amount that may
9 be paid from the guaranty fund with respect to properties within
10 a subdistrict or district is one -half of the remediation and
11 removal costs. The maximum duration of an indemnification
12 agreement is .. years. An indemnification agreement is subiect
13 to any other restrictions provided by this section or other law.
14 Subd. 4. (FUNDING.) ta) Revenues derived from tax
15 increments and any other money available to the authority may be
16 deposited in the guaranty fund. The municipality may
17 appropriate money to the authority to be deposited in the
18 guaranty fund.
19 1b) If a guaranty fund is established that applies to
20 property located in more than one tax increment financing
21 district or subdistrict, the authority shall establish separate
22 accounts for each subdistrict and district. The authority shall
23 deposit all revenues derived from tax increments from a
24 subdistrict or district in the account for that subdistrict or
25 district, except the following amounts may be deposited in a
26 general or other account: (1) the portion of revenue derived
27 increments from a district, subject to section 469.1763, that
28 may be spent on activities outside of the district or (2) up to
29 2S percent of the revenues derived from increments from
30 districts that are not subject to section 469.1763 and which may
31 be deposited in the guaranty fund under the applicable tax
32 increment financing plans. investment earnings of money in an
33 account must be credited to that account.
34 (c) The only money which may be Pledged to indemnify or
35 hold harmless a person from liability are amounts either in the
36 account for the subdistrict or district in which the property
20
25
26
03/15/93 09:03 (RESDEPT ) rA JM8 -4
'
1
out of which the liability arose is located or in an account not
2
dedicated to a specific subdistrict or district.
3
Subd. S. (LIABILITY LIMITED.) The authority and
'
4
municipality is liable under a guaranty fund agreement only to
'
5
the extent funds are available in the guaranty fund account or
6
accounts available for the property.
'
7
Subd. 6. (DEPOSITORY.) The authority shall provide for the
8
guaranty fund to be held by or maintained with a financial
9
institution or corporate fiduciary eligible for the deposit of
'
10
11
public money or eligible to act as a trustee or fiduciary for
obligations issued
,
36
under chapter 475.
'
12
Subd. 7. (rINAL DISPOSITION OF FDNDSA At the and of the
13
period of the indemnification, all unencumbered money in the
'
14
guaranty fund for the subdistrict or district must be treated as
15
an excess increment and distributed under the provisions of
,
16
section 469.176, subdivision 2(a)(4). If the municipality
17
contributed money to the account, other than revenues deribed
'.
18
from increments, the authority may deduct and pay to the
19
municipality a proportionate share of the unencumbered money in
'
20
the account before the money is distributed as an excess
21
increment. The proportionate share is determined based on the
'
22
amount of contributions of non - increments to the account
23
relative to total contributions, including increments, to the
24
account.
r
25
26
Sec. C Minnesota Statutes 1992, section 469.177,
1, is
'
subdivision amended to read:
27
Subdivision 1. (ORIGINAL NET TAX CAPACITY.) (a) upon or
28
after adoption of a tax increment financing plan, the auditor of
'
29
any county in which the district is situated shall, upon request
30
of the authority, certify the original net tax capacity of the
31
.tax increment financing district as described in the tax
32
increment financing plan and shall certify in each year
33
thereafter the amount by which the original net tax capacity has
34
increased or decreased as a result of a change in tax exempt
'
35
status of property within the district, reduction or enlargement
36
of the district or changes pursuant to subdivision 4.
'
21
1
fl
1
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1 (b) In the case of a mined underground space development
2 district the countp`audtor shall certify the original net tax
3 capacity as zero, plus the net tax capacity, if any, previously
4 assigned to any subsurface area included in the mined
5 underground space development district pursuant to section
6 272.04.
7 (c) For districts approved under section 469.175,
8 subdivision 3, or parcels added to existing districts after May
9 1, 1988, if the classification under section 273.13 of property
10 located in a district changes to a classification that has a
11 different assessment ratio, the original net tax capacity of
12 that property must be redetermined at the time when its use is
13 changed as if the property had originally been classified in the
14 same class in which it is classified after its use is changed.
15 (d) The amount to be added to the original net tax capacity
16 of the district as a result'of previously tax exempt real
17 property within the district becoming taxable equals the net tax
18 capacity of the real property as most recently assessed pursuant
19 to section 273.18 or, if ,that assessment was made more than one
20 year prior to the date of title transfer rendering the property
21 taxable, the net tax capacity assessed by the assessor at the
22 time of the transfer.' If substantial taxable improvements were
23 made to a parcel after certification of the district and if the
24 property later becomes tax exempt, in whole or part, as a result
25 of the authority acquiring the property through foreclosure or
26 exercise of remedies under a lease or other revenue agreement or
27 as a result of tax forfeiture the amount to be added to the
28 original net tax capacity of the district as a result of the
29 property again becoming taxable is the amount of the parcel's
30 value that was included in original net tax capacity when the
31 parcel was first certified. The amount to be added to the
32 original net tax capacity of the district as a result of
33 enlargements equals the net tax capacity of the added real
34 property as most recently certified by the commissioner of
35 revenue as of the date of modification of the tax increment
36 financing plan pursuant to section 469.175, 4.
22
03/15/93 09:03 (R.ESDEPT j FA JM8 -4 I
1 (e) For districts approved under section 469.175,
2 subdivision'3, or parcels added to existing districts after May
3 1, 1988, if the net tax capacity of a property increases because
4 the property no longer qualifies under the Minnesota
5 agricultural property tax law, section 273.111; the Minnesota
6 open space property tax law, section 273.112; or the
7 metropolitan agricultural preserves act, chapter 4733, or
8 because platted, unimproved property is improved or three years
9 pass after approval of the plat under section 273.11,
10 subdivision 1, the increase in net tax capacity must be added to
11 the original net tax capacity.
12 (f) Each year the auditor shall also add to the original
13 net tax capacity of each economic development district an amount
14 equal to the original net tax capacity for the preceding year
15 multiplied by the average percentage increase in the market
16 value of all property included in the economic development
17 district during the five years prior to certification of the
18 district.
19 (g) The amount to be subtracted from the original net tax
20 capacity of the district as a result of previously taxable real
21 property within the district becoming tax exempt, or a reduction
22 in the geographic area of the district, shall be the amount of
23 original net tax capacity initially attributed to the property
24 becoming tax exempt or being removed from the district. If the
25 net tax capacity of property located within the tax increment
26 financing district is reduced by reason of a court- ordered
27 abatement, stipulation agreement, voluntary abatement made by
28 the assessor or auditor or by order of the commissioner of
29 revenue, the reduction shall be applied to the original net tax
30 capacity of the district when the property upon which the*
31 abatement is made has not been improved since the date of
32 certification of the district and to the captured net tax
33 capacity of the district in each year thereafter when the
34 abatement relates to improvements made after the date of
35 certification. The county auditor may specify reasonable form
36 and content of the request for certification of the authority
23
11
■
it
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03/15/93 09:03 (RESDEPT j FA JM8 -4
1
and any modification thereof pursuant to section 469.175
2
subdivision 4.
'
3
(h) If a parcel of property contained a substandard
4
building that was demolished or removed and if the authority
5
elects to treat the parcel as occupied by a substandard building
6
under section 469.174, subdivision 10, paragraph (b), the
'
7
8
auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of
9
10
the parcel, or (2) the estimated market value of the parcel for
the in
year which the building was demolished or removed, but
it
applying the class rates for the current year..
'
12
Sec. 7. Minnesota Statutes 1992, section 469.177,
13
subdivision 8, is amended to read:
14
Subd. S. (ASSESSMENT AGREEMENTS.] An authority slay enter
15
into a written assessment agreement with any person establishing
16
a minimum market value of land, existing improvements, or
17
improvements to be constructed in a district, if the property is
18
owned or will be owned by the person. The minimum market value
19
established by an assessment agreement may be fixed, or increase
I
20
or decrease in later years from the initial minimum market
21
value. If an agreement is fully executed before July l'of an
'
22
23
assessment year, the market value established by the agreement
be
must used by the county or local assessor as the taxable
24
25
market value of the property for that assessment. Agreements
executed July
on or after 1 of an assessment year become
26
effective for assessment purposes in the following assessment
27
ey ar. An assessment agreement terminates on the earliest of the
28
date on which conditions in the assessment agreement for
29
termination are satisfied, the termination date specified in the
30
agreement, or the date when tax increment is no longer paid to
31
the authority under section 469.175, subdivision 1. The
32
assessment agreement shall be presented to the county assessor,
33
or city assessor having the powers of the county assessor, of
34
the jurisdiction in which the tax increment financing district
'
35
and the property that is the subject of the agreement is
36
located. The assessor shall review the plans and specifications
24
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1 for the improvements to be constructed, review the market value
2' previously assigned to the land upon which the improvements are
3 to be constructed and, so long as the minimum market value
4 contained in the assessment agreement appears, in the judgment
5 of the assessor, to be a reasonable estimate, shall execute the
6 following certification upon the agreement:
7 The undersigned assessor, being legally responsible
8 for the assessment of the above described property,
9 certifies that the market values assigned to
10 the land and improvements are reasonable.
it The assessment agreement shall be filed for record and
12 recorded in the office of the county recorder or the registrar
13 of titles of each county where the real estate or any part
14 thereof is situated. After the agreement becomes effective for
15 assessment purposes, the assessor shall value the property under
16 section 273.11, except that the market value assigned shall not
17 be less than the minimum market value established by the
18 assessment agreement. The assessor may assign a market value to
19 the property in excess of the minimum market value established
20 by the assessment agreement. The owner of the property may
21 seek, through the exercise of administrative and legal remedies,
22 a reduction in market value for property tax purposes, but no
23 city assessor, county assessor, county auditor, board of review,
24 board of equalisation, commissioner of revenue, or court of this
25 state shall grant a reduction of the market value below the
26 minimum market value established by the assessment agreement
27 during the term of the agreement filed of record regardless of
28 actual market values which may result from incomplete
29 construction of improvements, destruction, or diminution by any
30 cause, insured or uninsured, except in the case of acquisition
31 or reacquisition of the property by a public entity. Recording
32 an assessment agreement constitutes notice of the agreement to
33 anyone who acquires any interest in the land or improvements
34 that is subject to the assessment agreement, and the agreement
35 is binding upon them.
36 An assessment agreement may be modified or terminated by
25
E
1
1
1
1
1
F
1
1
1
1
1
1
1
1
1
1'
1
1
IL
1
F
L
03/15/93 09:03 (RESDEPT ) FA JMS -4
1 mutual consent of the current parties to the agreement.
2 Modification or termination of an assessment aareement must be
3 approved by the governing bodies of the municipality, the
4 county, and school district in which the property is located A
5 document modifying or terminatioa an aareement, includina
6 records of the municipality, county, and school district
7 app roval, must be filed for record. The assessor's review and
8 certification is not-required if the document terminates an
9 agreement. A change to -an agreement not fully executed before
10 July 1 of an assessment year is not effective for assessment
it purposes for that assessment year. A person may seek a
12 reduction in market value or tax through the exercise of any
13 administrative or legal remedy to the extent that the market
14 value or tax sought to be reduced was established by an
15 agreement that has been modified or prematurely terminated In
16 no event may a reduction be sought for a year other than the
17 current taxes payable year.
is Sec. 8. (MINNETONKA; SOILS DISTRICT.)
19 Subdivision 1. (AUTHORITY.) The city of Minnetonka may
20 create a soils condition tax increment financing district with
21 or without a hazardous substance subdistrict, covering all or
22 any portion of the followina described property in the city of
23 Minnetonka, county of Hennepin, state of Minnesota:
24 All that part of the east half of the northeast quarter of
25 section 14; township 117 north, ranee 22 west, lying north of
26 the Great Northern Railway right of way;
27 The east half of the southeast quarter of section 11,
28 township 117 north, range 22 west; and
29 Lots 1, 2, 3, 4, 5, and 10, Block 1, and Lots 1 3, and
30 6, Block 2, Golden Acres Addition.
31 This district and a subdistrict may be created under
32 Minnesota Statutes 1992, section 469.175 if the governing body
33 of the city finds, by resolution, that establishment of the
34 district and a subdistrict will facilitate environmental
35 response and reduce the likelihood of litigation. Except as
36 otherwise provided in t� section, the provisions of Minnesota
26
03/15/93 09:03 (RESDEPT I FA JM8 -4 1,
1
Statutes 1992, section 469.174 to 469.179 apply to the district
3. (LIMITS ON SPENDING INCREMENTS; POOLING
2
and a subdistrict. The city may issue bonds or other
RULES.] (a)
3
obligations payable, in whole or in part, from increment derived
35
4
from the district and a subdistrict. The reauest for
'
5
certification of the district and a subdistrict must be filed
section. Ovenues derived from tax increments from
6
with the county auditor before December 1, 1995. The city may
7
defer receipt of the first increment from the district or from a
8
subdistrict for up to three years following certification.
'
9
Minnesota Statutes 1992, sections 469.174, subdivision 7.
10
aarragraph (c) and subdivision 19, clause (a)(3); and section
11
469.176, subdivisions 1, paragraph (d)i 4b; 4e; 5; and 7, do not
12
apply to this district and subdistrict. Nothing in this section
'
13
affects the liability of persons for costs or damages associated
14
with the release of hazardous substances, the city's right to
'
15
pursue responsible parties or reimbursement under applicable
16
insurance contracts, or the city's liability under Minnesota
17
Statutes 1992, section 1158.04, subdivision 4. The powers
18
granted are in addition to other powers of the city.
19
Subd. 2. (QUALIFICATION RULES.] Before creating a district
20
or subdistrict under this section, the governing body of the
21
city of Minnetonka must find that the response costs related to
22
23
the district and subdistrict and deposits to the indemnification
fund for
'
or premiums the purchase of private environmental
24
insurance necessary to develop the site exceed the estimated
25
fair the land in the district
'
market value of and subdistrict
26
after completion of all necessary response activities and
27
provision of indemnification under the plan. This finding is in
,
28
addition to the findings required under Minnesota Statutes 1992,
29
section 459.174, subdivision 19, clauses (a)(1) and (2) in the
,
30
case of the district, and the findings required under Minnesota
31
Statutes 1992, section 469.174, subdivision 7 in the case of the
32
subdistrict.
33
Subd.
3. (LIMITS ON SPENDING INCREMENTS; POOLING
,
34
RULES.] (a)
The provisions of Minnesota Statutes 1992, section
35
469.1763,
do.not apply to the district and a subdistrict created
'
36
under this
section. Ovenues derived from tax increments from
27
'
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1 28
1
the district and subdistrict may be spent only on:
2
(1) response " _casts:_relatedo:<to:_:the area contained in the
3
district and subdistrict including the activities outside of the
'
4
subdistrict or the district but within the project, to the
'
5
6
extent necessary to prevent contaminants moving to or from the
contaminated
parcels;
7
12) deposits to an indemnification fund or the - purchase of
'
8
environmental insurance, relating only to liability or
9
additional response costs for contaminated parcels located in
'
10
the district; and
11
(3) administrative expenses and costs permitted under
'
12
Minnesota Statutes 1992, section 469.176, subdivisions 3 and 4h,
13
including costs of review and approval of development response
14
actions Plans by the commissioner of the pollution control
15
agency and litigation expenses of the attorney general, y � al, if any.
16
(b) After sufficient revenues derived from tax increments
17
have been received to pay all remediation costs, deposits to an
18
19
indemnification fund or insurance premiums, and administrative
and
other qualifying costs, the district and subdistrict must be
20
21
decertified. Minnesota Statutes 1992, section 469.176
subdivision 1,
paragraphs (e) and (a) apply to the district and
22
subdistrict, except to the extent limited by this section.
'
23
Subd. 4. (DEFINITION.) For purposes of this section,
24
"r means activity constituting "respond" or "response"
'
25
as those terms are defined in Minnesota Statutes section
26
115B.02. Response costs include activities, including
27
installation of public infrastructure, necessary to respond.
28
Subd. 5. (STATE AID REDUCTION.) The state aid reductions
29
under Minnesota Statutes, section 273.1399, do not apply to the
30
district or a subdistrict established under this section, if the
'
31
city elects to pay and pays 25 percent of the response costs and
32
de]2osits to the indemnification fund out of its general fund, a
33
property tax levy for that purpose, or other unrestricted city
34
money (other than tax increments). The city must elect this
35
36
option at the time of certification of the district and must
notify the
commissioner of revenue of its election. The
1 28
27 subdistrict. '
28 Subd. 2. (PRESERVATION OF RIGHTS.] Nothing in this section
29 affects the liability of persons for costs or damages associated
30 with the release of hazardous substances, or the city's right to
31 pursue responsible parties or to secure reimbursement tinder
32 applicable insurance contracts, or the city's liability under
33 Minnesota Statutes, section 11SB.04, subdivision 4. The powers
34 granted are in addition to other powers of the city.
35 Subd. 3. (QUALIFICATION RULES.] Before creation of a
36 subdistrict under subdivision 1, the city of Hopkins shall
29
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1
election is irrevocable.
2
Sec. 9. (CITY OF HOPKINS; HAZARDOUS SUBSTANCE
3
SUBDISTRICT.)
4
Subdivision 1. (AUTHORIZATION.] Pursuant to Minnesota
5
Statutes, section 469.175, subdivision 7, the city of Hopkins or
6
its housino and redevelopment authority may create one or more
,
7
hazardous substance subdistricts within tax increment financing
8
district No. 2 -5, or within any new tax increment financing
9
district encompassing any parcels located within township 117N,
10
range 22W, section 25 in the area bounded on the north by CSAH
'
11
No. 3; on the south by the Chicago and Northwestern Railroad
12
right -of -way; on the west by the city of Hopkins /city of
13
Minnetonka boundary; and on the east by the existing parcel
14
occupied by the city of Hopkins Well No. 1 Building. The city
15
its housing issue bonds
,
or and redevelopment authority may or
16
other oblieations payable in whole or in part from increment
17
derived from the subdistrict or district upon a finding by city
t
18
resolution that establishment of the subdistrict will facilitate
19
environmental remediation and further the obiectives of the tax
20
increment financing plan for the district. The request for
21
certification of the subdistrict must be filed with the county
22
auditor before December 1, 1995. The city may defer receipt of
23
the first increment from a subdistrict for up to three years
'
24
following certification. Minnesota Statutes, sections 469.174,
25
subdivisions 7, paragraph (c), and 16; and 469.176, subdivisions
'
26
1, paragraphs (d) and (a), 4e, 6, and 7, do not apply to the
27 subdistrict. '
28 Subd. 2. (PRESERVATION OF RIGHTS.] Nothing in this section
29 affects the liability of persons for costs or damages associated
30 with the release of hazardous substances, or the city's right to
31 pursue responsible parties or to secure reimbursement tinder
32 applicable insurance contracts, or the city's liability under
33 Minnesota Statutes, section 11SB.04, subdivision 4. The powers
34 granted are in addition to other powers of the city.
35 Subd. 3. (QUALIFICATION RULES.] Before creation of a
36 subdistrict under subdivision 1, the city of Hopkins shall
29
03/15/93 09:03 (RESDEPT ] FA JM8 -4
1 determine that the existence of pollution or contamination of
2 parcels within the subdistrict materially impairs the ability of
3 the owners of the parcel's to '664 sell, lease, or finance
4 all or any portion of the parcels
5 In addition, the city shall, following review by the
6 pollution control agency, prepare and adopt a report which
7 delineates the maximum amount of money to be reserved for
6 eligible expenditures.
9 Subd. 4. (ELIGIBLE EXPENDITURES.] Revenue derived from tax
10 increments from the subdistrict may be spent only ons
11 (1) costs of investigating and remediatiog the pollution or
12 contamination in the area contained in the subdistrict,
13 including activities outside of the subdistrict to the extent
14 necessary to prevent pollutants or contaminants moving to or
15 from the subdistrict;
16 (2) deposits to an indemnification fund to be used to
17 indemnify existing or future owners, purchasers, lessees, or
18 mortgagees of any parcel in the subdistrict against
19 environmental liability and costs associated with the
2; investigation and remediation of pollution or contamination in
21 the subdistrict, or the purchase of environmental insurance
22 relating only to liability or remediation costs for parcels
23 located in the subdistrict;
24 (3) administrative expenses and costs, including those
25 permitted under Minnesota Statutes, section 469 176, subdivision
26 4h, and costs of preparation, review, and approval of any
27 response action plan or partial response action plan by the
28 pollution control agency; and
29 (4) costs of actions, including litigation, to recover
30 investigation and remediation costs incident to the subdistrict
31 from responsible persons.
32 Sub_ d_5. (DECERTIFICATION.) After sufficient revenues
33 derived from tax increments have been received to pay all
34 investigation and remediation costs, deposits to an
35 indemnification fund, insurance premiums, and administrative and
36 other guaiifying costs, and in all events not more than 20 years
30
03/15/93 09:03 (RESDEPT ) FA JM8 -4
1
from the date of receipt by the city of the first tax increment
2
from the subdistrict, the subdistrict must be decertified.
3
Subd. 6. (REDISTRIBUTION.) When the city has received
4
sufficient tax increment funds to pay all eligible expenditures,
5
any funds received must be applied by the city in the manner of
6
excess tax increments under Minnesota Statutes, section 459.176,
7
subdivision 2, and the Hennepin county auditor shall increase
8
the original net tax capacity of the parcels in the subdistrict
9
to the original net tax capacity that would prevail had no
10
reduction been made.
11
Subd. 7. (DEFINITIONS.) For purposes of this section,
,
12
"remediation" means activity constituting removal, remedy,
13
remedial action, or response as those terms are defined in
14
Minnesota Statutes, section 1159.02, including activities to
15
develop and implement a response action plan approved by the
16
pollution control agency under Minnesota Statutes, section '
17
1158.17, subdivision 14, or a partial response action plan
'
18
approved by the pollution control agency under Minnesota
19
Statutes, section i1SB.175. Remediation costs include
'
20
activities necessary to accomplish remediation, including
21
installation of public infrastructure.
22
Subd. 8. (STATE AID REDUCTION.] The state aid reductions
23
under Minnesota Statutes, section 273.1399, do not apply to a
if the elects
'
24
subdistrict established under this section, city
25
to pay and pays 25 percent of the response costs and deposits to
26
the indemnification fund out of its General fund, property tax
27
levy for that purpose, or other unrestricted city money (other
28
than tax increments). The city must elect this option at the
'
29
time of certification of the district and must notify the
30
commissioner of revenue of its election. The election is
'
31
irrevocable.
32
Sec. 10. [INVER GROVE HEIGHTS.]
,
33
Subdivision I. (EXTENSION OF TIP DISTRICT.) Tax increment
34
financing district number 3 -2, established by the city of Inver
35
v i hts on A ril 30 1992 under Laws 1990 chapter
Grove FIe g p � ter 604; p
36
article 7, section 30, subdivision 2, continues in effect until
'
31
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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03/15/93 09:03 IRESDEPT ) FA JM8 -4
1 the earlier of (1) May 1, 2004 or (2) when all costs provided
2 for in the tax an relating to the district
3 have been paid. In no event may the city receive more than
4 eight years of tax increments for the district and all tax
5 increments received after May 1, 2002, in excess of the amount
6 of local government aid lost by the city under Minnesota
7 Statutes, section 273.1399 as a result of such tax increments,
8 shall be used only to pay or reimburse capital costs of public
9 road and bridge improvements.
10 Subd. 2. (BOND AMMORIZATION.) If the city of Inver Grove
11 Heights, the Minnesota department of transportation, and Dakota
12 county agree to the planning, design, construction and
13 reconstruction of state, county and city highway, street•and
14 bridge improvements that serve, amona other areas, the area of
15 tax increment financing district number 3 -2, the city council
16 may, by resolution, authorize, sell and issue general obligation
17 bonds of the city in a principal amount not to exceed $4,000,000
18 to finance part of the cost of the improvements to be paid for
19 by the state under the agreement. The city shall issue the
20 bonds only if and to the extent it estimates they -are necessary
21 to pay costs of the improvements coming due for which state
22 funds are not immediately available but will be received by the
23 city under the agreement. The city shall pledge the state
24 moneys to the payment of the bonds and after it receives the
25 moneys shall pay the bonds as soon as practicable. The bonds
26 shall be issued and secured under Minnesota Statutes, chapter
27 475, except no election is required to authorize their issuance.
28 Sec. 11. (EFFECTIVE DATE.)
29 Sections 1, 3, and 5 are effective for districts and
30 subdistricts for which requests for certification are made after
31 August 1, 1993.
32 Sections 2 and 4 are effective the day following final
33 enactment.
34 Sections 6 and 7 are effective July 1, 1993 and apply to
35 all districts, regardless of when the request for certification
36 was made, including districts for which the request for
32
03/15/93 09:03 (RESDEPT I PA JMB -4
1 certification was made before August 1, 1979. Section 7 applies
2 only to modifications of assessment agreements made after August
3 1, 1993.
4 Section 8 is effective upon compliance by the city of
5 Minnetonka with Minnesota Statutes, section 645.021, subdivision
6 3.
7 Section 9 is effective upon compliance by the city of
8 Ropkins with Minnesota Statutes, section 645.021, subdivision 3.
9 Section 10 is effective the day following final enactment
10 without the approval of any local government.
33
1
l
PROPOSED SPECIAL LEGISLATION
FOR CARVER COUNTY
Sec. 11. [Carver County.]
Subdivision 1.
[EXTENSION OF TIF DISTRICT.] The tax increment
financing district established by the housing and redevelopment authority in and for
the city of Chanhassen and approved by the city on December 19, 1977 within the
downtown and Chanhassen lakes business park areas continues in effect until the
earlier of (1) December 31, 2004 or (2) when all costs provided for in the tax
Increment financing plan relating to the district have been paid. All tax increments
received after April 1, 2001, in excess of the amount needed to pay bonds issued
before April 1, 1990, shall be used only to pay or reimburse capital costs of public
road improvements.
Subd. 2. [BOND AUTHORIZATION.] If Carver county and the cities of
Chanhassen and Chaska agree to the planning, design, construction and
reconstruction of county and city highway and street improvements that serve,
among other areas, the area of the tax increment financing district established on
December 19, 1977, the city council may, by resolution, authorize, sell and issue
general obligation bonds of the city to finance part of the cost of the improvements
to be paid for by the county under the agreement. The city shall issue the bonds
only if and to the extent it estimates they are necessary to pay costs of the
improvements coming due for which county funds are not immediately available but
will be received by the city under the agreement. The city shall pledge the county
moneys to the payment of the bonds and after it receives the moneys shall pay the
bonds as soon as practicable. The bonds shall be issued and secured under
Minnesota Statutes, chapter 475, except no election is required to authorize their
issuance.
1t�50687
C8130 -26
MkP 19 1 9B 11:59 HOLMES & GRAVEN
P.2
i WWO RANDUM
TO: Don Ashworth, City Manager
FRROW Bon Batty, ERA Attorney
DATE: March 18 1993
RE; County Road Funding Project
At our meeting on March 1S, 1993 with Carver County Administrator `Dick
Stoltz, Carver County Fngineer�Roger Gustafson and Chaska City Administrator '
, Dave PoKorney, several questions arose regarding the application of the tax son and
chalk increment
a a to fund certain efforts
oad ryojec Car I have r those e matters sa and offer the
Chask I
following comments .
1. How will tax lneremeni oe a m vex- • •. - - -
Chanhassen's downtown IF district? As a pre -1 TIF st ct, hanhassen's
is exempt the tax increment statute. from When the
downtown district generally
statute was adopted in 1979, all pre - existing districts were given a 80 year life. The
ago to force an earlier and date under
legislature amended the statute several years
that no increment may be expended
,
certain conditions. The statute now provides
from a -1979 district after April 1 2001 except to meet debt service on obligations
pre
Incurred prior to April 1, 1990. In no case may the district continue after August
I 2009.
The effect of the above provision is that after April 1, 2001 the
downtown district will only be able to spend the increment necessary to meet pre -
April 1, 1990 debt. However, I believe that the county auditor will be required to
district in 2001 and thereafter
remit to the HRA the full increment generated by the
until all pre -April 1, 1990 debt has been paid. I do not believe that the auditor may
legally attempt to determine how much increment will be necessary to meet pre -1990
debt and retain the difference.
There are several reasons which compel this conclusion. To have the auditor
retain any portion of the increment would be to have him or her attempt to enforce
statute with regard to the past -2001 limitations. There is no
the tax increment
statutory authority for the auditor to play this role. The burden of complying with
the statute rests on the ERA. Secondly, the statute clearly gives the ERA the
do increment in excess of that needed to meet
authority to determine what to with
immediate debt service. This includes the right to prepay bonded indebtedness.
would interfere with the HRA's ability to exercise this
'
Retaining any increment
power.
If the ERA chooses to return any increment to the county in 2001 or
must be characterized as excess increment. The statute
thereafter. that money
rovides that excess increment must be redistributed by the county auditor
city, school district and county in proportion to their respective tax capacity rates.
from the redistribution are the minor taxing jurisdictions. Also, since the
Excluding
district will still be in existence until all debt obligations have been satisfied, there
should be no change in its status vie a vis fiscal disparities. Not until all obligations
�pSD51!
Ci1�C�36 2
11'"'11' -. J.' � iL VV • IVL ILV M VI -1 Yc
have been satisfied will the district be de- certified and be subject to fiscal
disparities. Holmes & Graven has taken the position that the post April 1, 2001
limitation on the expenditure °df increment' not apply to increment previously
collected and on hand on that date. In other words, any funds, including
' increment, collected but unspent by that date may to be spent after April 1, 2001
notwithstanding the above limitations.
C
n
2. May a TIF authors VOlUn"LarUY Sauuss w = o%fiy yW - __ -- --- -__ - --
subd. la ? . he TI statute authorizes a county to 'squire a .- IF authority - to
dedicate tax increment to pay for certain county road improvements. The provision
was effective for soils condition districts requesting certification after May 1, 1988.
In 1990 the legislature expanded the scope of the provision to include all tax
inerement'districts requesting certification after May 1, 1990. The provision clearly
does not apply to Chanbassen's downtown tax increment district. As noted, the TIF
statute exempts pre -1979 tax increment districts from the statute, except as
specifically provided. One of those exceptions Jr. that a TIF authority may elect to
bring a pre -1979 district under the provisions of the tax increment statute.
Arguably, the ERA could choose to subject the downtown district to the provision
regarding payment for county roads. However, there is some question whether that
provision allows an a -la -carte selection of particular provisions or whether it is
meant to allow only an all or nothing choice .
Tax increment districts created during the period between 1979 and 1988 are
not given similar explicit authority. However, an argument could be made to permit
this since paying for county road improvements is now the law and clearly not
contrary to public policy. The hesitancy I have with such a position is a practical
one. Having acquiesced in a county's attempt to make a pre -1988 district subject to
the county road provision, it may be difficult for a TIF authority to resist a future
effort by a county to subject it retroactively to some less desirable amendment -
Despite this probable statutory authority, there are at least two easier ways
to accomplish the goal of having the ERA contribute towards the cost of county
roads. The simplest is to have Chanhassen pay for most of or all of the costs of the
road segments located within the project areas in return for the county picking up
most of or all of the costs of segments outside of the districts. A second way to
accomplish the goal is to amend the boundaries of the project area. while it has not
been possible.to expand the downtown TIF district since August 1, 1984, there is no
restriction on expanding the project area. The HRA did just that with modification
no. 11 adopted in April 1992. It would be possible to expand the project area to
include other road segments and thus allow the tax increment money to be spent on
those segments. This could even include overlapping the downtown district with
Development District No. 2.
=5052:
02,00 -26
2
S°
1 �•�
W
Post 2000 Tax increment and Amounts
Potentially Available for County Road Construction
i�
Post 20M Scheduled Debt Payments
Fund
Description
2001
2(()2
309
Tax Increment Borr�, of 1990
184,130
1,440,305
> Bonds of 1989
1,003,200
723,600
318
Tax Increment Bonds of 19
80
315
Tax Increment Bonds of 1987
530,000
517
Improvement Bonds of 1987
230,500
218,500
320
Improvement Bonds of 1988
,550
53,450
Total $2.111.480 52.435.85:
Estimated Increment Available 1br County Roars Consttvct
Conservative
Description :0,
Total Estimated Tax ltrcrement !6.OM
Scheduled Debt from Above* ~ 3.OM
Special Levy Dist. to School 1.OM
Total
2(103 2004 2001 -03
1.434,390
Total
2001 -03
t
206,000 ,
$1.640,3%) !� `„ Z 57
2004
6.0 6.OM
2.3M .6M
tlm 1.2M
3.9 31 G y,'!
Net Availabl -Co. Road CAMV
sz.9p1 32A M
Opt imistic
Total EstimatV incretnent M
Scheduled De. om Above* ( . M ZAM
Special Levy Dist. to School M M . M
Net Available - Co. Road Const.
1, O
2, L
* Includes 10% Administrative Fee
f�
N � � � ill• ■� � ,�1► ��
March 22, 1993
Total
2001 -04
2 , Z
o
Total
2001 -04
s7.OM $11.2M
7:OM
.7M \
1.2M
sue. $
s
� illy �■ � � � �
I
I
MEMO
T0: CITY COUNCIL
A e 'FROM: DAVE POKORNEY
SUBJ: EASTERN CARVER COUNTY TRANSPORTATION PLAN IMPLEMENTATION
' DATE: MARCH 12, 1993
t In 1990 Chaska along with Chanhassen, Victoria, Waconia, Carver
and Carver County jointly developed the Eastern Carver County
Transportation Study. This study identified future
' traffic /highway needs based on 2005 development forecasts. The
plan concluded that a number of major County highway improvements
were necessary in Eastern Carver County to meet these future
demands. The recommended 1993 -2002 program for the Chanhassen,
' Chaska, and Victoria area of Carver County is summarized in Map
A. The estimated cost to implement this program is $50,000.00.
Recently, I have been meeting with representatives of Carver
County and Chanhassen to develop a joint strategy for
constructing and funding these highway improvements. The first
' step in our process was to review resources available to the
County to fund the necessary improvements. Through the 1990's it
is forecast that Carver County will receive approximately $1.3
million annually in State Aid funds and may have the ability to
' levy an additional $800,000- 51,000,000 for highway purposes.
Consequently, County would have resources available over a 10
year period on a County wide basis for highway improvements of
' $20 -22 million not adjusted for inflation. Consequently, even if
the County were to allocate 100% of its resources it would be
unable to address full Eastern Carver County highway.needs.
The second step in our review was to begin to prioritize the
projects. As a product of this review we identified those
project as shown on Map B as our initial priorities. As you will
note from the map, the main emphasis in the Chaska area is
upgrading County Road 17 which will provide an alternative
north /south route through the community. At the present time the
only north /south route continuous roadway is Hwy. 41, which is
closely approaching capacity. Further, with development that is
occurring along County Road 17 both in Chaska and in Chanhassen,
' this project became an obvious priority. The total costs for the
projects in the first priority group is estimated to be
$10,668,000. As we discussed these groups of projects it became
clear that any improvement program needed to be coordinated so as
' to avoid an extended period of construction (i.e. County Road 17
being under construction through four continuous construction
seasons) and that a financing plan should be developed which
would allow the County to complete these improvements in a timely
manner.
1
County
�•
State Aid County
Year Allocation Tax Levy County Total
1993 -0- $ 959,000 S1 009, 000
'
1994 $1,323,000 200,000 1,523,000
1995 1,780,000 1,127,000 2,907,000
1996 475,000 655,000 1,130,OOOf
'
D. The City of Chaska would agree to contribute $400,000
per year of tax increment revenues from 1997 through
2001 towards financing of the project. It is
,
anticipated that Chaska would sell debt of approximately
$ which would be available for construction to the
County in 1994. Prepayment of the $1.6 million debt
'
would come from Chaska's $400,000 commitment annually
beginning in 1997.
E. Chanhassen would agree to contribute $1,000,000 of tax
'
increment in 1993 and $400,000 annually of tax increment
revenues beginning in 1996 through 1999 or a $2.6
million contribution. Chanhassen would agree to an
'
additional contribution of $1.8 million in the 2000 -2002
timeframe if they are not required by State statute to
cancel their tax increment districts prior to that
'
timeframe. If, though, the districts are cancelled
Carver County would agree to contributing an additional
tax levy of $1.8 million generated in the 2000 -2002
timeframe. This additional County levy results from new
,
revenues accruing to the County as a result of
cancelling of the Chanhassen tax increment districts.
'
Under this scenario a total of $12.969 million would be available
and could fund the construction of up to $10.7 million of highway
improvements in the 1 93 -95 timeframe.
'
Obviously, a number of details relative to this concept need to
be worked out prior to consideration by each of the governing
bodies. The purpose, though, of reviewing these discussions with
'
the Council at this time is to both update the Council on our
discussions and to solicit your comments and direction that I
should proceed on the project. Key policy questions that the
Council needs to discuss are:
A. Is there a need to begin to put a higher priority on ,
constructing the County road improvements within Eastern
Carver County?
B. Are the priorities as outlined in Exhibit B appropriate? '
C. Is the Council supportive of using a portion of its
undesignated tax increment revenues for the proposed ,
improvements?
D. Is the sharing of costs as proposed among the three I
parties equitable anN appropriate?
r, r ■r r r r r r r r r .rr � r r� r� rr
ALTERNATIVE ONE
1933 - 1995
HIGHWAY IMPROVEMENT PROGRAM
FOR
COUNTY HIGHWAY CORRIDORS
IN
• CHANHASSEN'AND CHASKA
EAST OF TRUNK HIGHWAY 41
EG D
Censtwftn WAwn*uc6on Cm kfw
aw an an • Oveday 6 Shoulder P*ft Canldor
• Tiarc Signal IrotaMatlon Loeallon
• • • Development Distdd 9owwary
?�N� •::� ; i•t�h k I r� -. i� dal�f�'F:�I'!.I'�i�...... �fSIM��MI����f1�711A InflAl� �ltt . n ��'E`l�A�f +��' � i +. . , f ' s • e�•i'.r �'
�a � •� 1 � r. � „� •air � l �;tb � �f,� .,.: ••:�• ��'� f •.y1�-1�:�1 <•�.
: i•
ALTERNATIVE ONE
1903 - 1995 HIGHWAY IMPROVEMENT PROGRAM FOR COUNTY HIGHWAY CORRIDORS �•
IN
r CFIANHASSEN AND CMASKA (EAST OF TRUNK HIGHWAY 41)
City
CSAH 14 ioneer Tral
Wesl Oty Umb b TH 101
2 Lanes Rural Over
13
Caatbtltntafe (1)
a
Corridor
$agmarlt
Oaacr" m
LIMrrpth
60A001mile
.
I
Chaska
Tesmehip
12 Ult 4 Lanes Urban
1.0
170.000
CSAH 17 Powers Bh
CSAH 18 n) b Lake Drive West
4 Lena Urban Divided
1.1
316.000
110.000
Prat fen R -O -W
Corm
Tow
Chm.thassen
CSAH 14 ioneer Tral
Wesl Oty Umb b TH 101
2 Lanes Rural Over
13
290A001miia
65.000 65.000
A.
163.000
13DA00#111h
Two travel lane rural
60A001mile
7106c Signal
16.000 /mlla
Chaska
JCR 117 (CA 17 /Audubon Rd 10.3 M North of CSAH 14 to CSAH 16
12 Ult 4 Lanes Urban
1.0
170.000
CSAH 17 Powers Bh
CSAH 18 n) b Lake Drive West
4 Lena Urban Divided
1.1
316.000
110.000
2.000.000
2.510.000
!.Ake
Drive West to TH S
4 Lanes Urban Divided
04
14SAM
50.000
050.000
1.14S.000
N 5 to 02 Mile North
4 Lanes Urban Divided
OA
67.000
30.000
570.000
667.000
CSAH 14 (Pioneer Trait)
CSAH 1S (CR 17) b East City LNWU
2 Lanes Rural (Overla
0.4
40.000
40.000
CSAH 18 (L man Blvd)
TH 41 to TC S W Railroad
2 Lanes Rural Over
004
55.000
SCOW
CSAH IS (OR 17 /Audubon Rd)
TH 212 b Thimble Drive
2 (Ult 4) Lanes Urban
04
153AO0
72.000
600.000
121SA00
CSAH 16 L min Blvd)
CR 17 b 025 M Est N Audubon Rd
2 Lams Rural Owr
0.5
0.0
16.000
70A00
70.000
188.000
CSAH 18 (Lyrnan Blvd)
TH 41 b TC 5 W Railroad
2 Lenes Rural (Overlay)
11.0
O.S
145.000
$"ADD
70.000
At TH 41
Trade Signa
0.01
18.000
120.000
186.000
CSAH 10 (CA 117 /13slpn Blvd)
CSAH 18 (L Bhd) to TH S
2 Ult 4 Lanes Urban
1.1
187.000
66.000
1210.000
1.465.000
At TH S
Traffic Signal
OA
16.000
S/ A00
120.000
1 138.000
406.000
CA 117 (Gslpin Blvd)
TH S b North City LWit;
326.000
120.000
2.960.000
2.034.000
O
Subtolal
6.4
756.000
278.000
5210.000
6ANA100
Chartamen
ICSAM 18 (Lyrnam Blvd; - ;TC S W RR b CR 17 12
Lanes Rural (overla
0.6
1.1
290A001miia
65.000 65.000
A.
ISO=
13DA00#111h
Two travel lane rural
60A001mile
7106c Signal
16.000 /mlla
Chaska
JCR 117 (CA 17 /Audubon Rd 10.3 M North of CSAH 14 to CSAH 16
12 Ult 4 Lanes Urban
1.0
170.000
60.000
1.100mol 1.150Aw
2 UII 4 Lanes Urban
0.4
68.000
52.000
440.000
540.000
Subtotal
1.6
170.000
60.000
1.166.000 1.495.000
Chaska
CSAH 10 (CR 11/En sir Blvd)
TH 41 to CSAH 1S MR 17 /Audubon Rd)
2 Lanes Rur.9 Overla
1.1
290A001miia
Two (ult four) travel lanes urban
150.000
ISO=
13DA00#111h
Two travel lane rural
60A001mile
7106c Signal
16.000 /mlla
No utility relocation, adrninit tration. irnendng. and oiner
costs are kldtrded
60.000/wis
600AOONnih
CSAH 10 (CR 11/Engler Blvd)
CSAH 1S (OR 17 1Audubo to TH 212
2 UII 4 Lanes Urban
0.4
68.000
52.000
440.000
540.000
At TH 212
Traffic Signal
0.0
18.000
0
120.000
136.000
CSAH 14 (Pioneer Trait)
CSAH 1S (CR 17) b East City LNWU
2 Lanes Rural (Overla
0.4
40.000
40.000
CSAH IS (OR 17 /Audubon Rd)
TH 212 b Thimble Drive
2 (Ult 4) Lanes Urban
04
153AO0
72.000
600.000
121SA00
AtTH212
Trost Signal
0.0
16.000
0
120.000
188.000
CSAH 16 (Lyman Blvd)
TH 41 b Chaska East Lirrft
2 Rural Lanes (Overlay)
O.S
70.000
70.000
At TH 41
Trade Signa
0.01
18.000
120.000
186.000
CA 117 (CR 17 /Aud6lbon Rd)
CSAH 14 (Pioneer Tr) b 03 Mile North
2 (U1t 4) LArm Urban
OA
S/ A00
24.000
320.000
406.000
amww
3.6
326.000
120.000
2.960.000
2.034.000
(1) COST Estimate
'
Professional Servioe
Four Gave; lens: urban divided
290A001miia
Two (ult four) travel lanes urban
171,000/mile
Two travel lanes urban
13DA00#111h
Two travel lane rural
60A001mile
7106c Signal
16.000 /mlla
No utility relocation, adrninit tration. irnendng. and oiner
costs are kldtrded
T6W
'
11-61 I 466.000 8.775.000 10.666.000
R -O -W
Consirue5on
IwA00/mile
1 000AOghn56
'
60=11fttte
1.100ADGgNN
60.000/wis
600AOONnih
60.0o0/m8e
SOOA00/mih
--
120AOONaoh
T6FPRO22.WK1
r
u
• MEMO
TO: DICK STOLTZ
• FROM: DAVE POKORNEY
' SUBJ: COUNTY ROAD TAX INCREMENT FUNDING
DATE: NOVEMBER 30, 1992
Last week we discussed the need for Chaska to provide some
' preliminary numbers relative to its potential future tax
increment contribution towards County roads. Our assumption is
that the present tax increment law which allows for the use of
tax increment dollars to upgrade roads controlled by the County
will continue. As you are aware, Chaska's present redevelopment
plan has established a project for participation with Carver
County and budgets $1 million towards these improvements. As I
' have reviewed our tax increment cash flow projections it appears
that Chaska would be in a position to provide the following total
payments:
' 1997 - $ 400,000
1998 - $ 400,000
1999 - $ 400,000
2000 - $ 400,000
2001 - $ 400,000
2002 - $3,000,000
' Total $5,000,000
In making these commitments I would do so with the understanding
' that the following roadways would be upgraded:
Phase 2 of C.R. 17 upgrading 1994
' Engler Road extended east of C.R. 17 to 212 1994
C.R. 17 upgraded north of Pioneer Trail 1995 -1995
Engler Road extended westerly 1997-1998
C.R. 11 extended easterly to Jonathan Boulevard - 1998 -2000
As we discussed the City's preference would be that the County
develop a Five Year Capital Improvement Program to fund each of
these roadways during that timeframe and utilize our committed
cash flows to finance long term debt. After you have had a
chance to review these numbers, please feel free to contact me to
arrange a time to meet to discuss these projections further.
MAR- 2.3 -93 TUE 16:21
P.01 I
DATE: AW>
ro:
ATTN:
PROJECT:
CASE NO:
TRANSMITTAL
We are sending you: D Drawings
D Enclosed
L] UPS
E:J Specifications
C] Separate cover First Class
D Shop Drawings
C3 our D Your
Messenger 9 Express
C7
D facsimile
COPIES (DESCRIPTION
DATED
By
[� For Your Approval For Your Review /Comment Approved t] NOT Approved
D For Your Information As Requested As Corrected 0 Revise and Resu t
REMARKS
Copies To
Sincerely
,c ity Ot Chaska Min nesotaI One City Hell Plaza 55319 .1962 612 -448 -2851 Phone 612.448.9300 F
I MAR-2Z-9Z TUE 16:21 P.0:2
1
D RApr
March 22, 1993
Mr. Don Ashworth
City Manager
Chanhassen City Hall
P.O. Box 147
Chanhassen, MN 55317 -0147
Mr. Dick Stoltz
County Administrator
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
r
L 7
Dear Don & Dick:
The purpose of my letter is to provide a general outline
summarizing our understandings concerning implementation of Phase
1 of the Eastern Carver County Highway Construction Plan. In
1990 the cities of Chanhassen, Victoria, Chaska and Carver County
jointly developed the Eastern Carver County Transportation Study.
The study identified future traffic /highway needs based on 2005
development forecasts. The plan concluded that a number of major
County highway improvements were necessary in Eastern Carver
County to meeting these future demands. The recommended 1993 -
2002 program for Eastern Carver County was estimated to cost $50
million to implement.
Recognizing that the full project could not be funded in the five
year p=anning period and, further, that even the minimum program
cannot be funded 100% by Carver County's existing resources, the
cities of Chaska and Chanhassen along with Carver County have
developed an alternative funding package and phasing strategies
for implementing the key elements of the Eastern Carver County
highway needs. The first phase of the project would consist of
the following improvements which are &lac shown on Map A:
COS:
'
^SRS
:4S
%
. .
-� ?'
:i...
• P :v'•
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•
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ft+i4
CSAH
0
P.^.N Ps �i
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V •� �.
CSA�
:9
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YYAV :C .ei :`:
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.lba� /LP,11
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':?
/:R '�
?.L.=::2 :'2 LVIA�
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h *Y . 'C
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sh;:., ae :�
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CR •I ''' 7
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':•
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a :qrs:
i338,C "v "v
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fi�Y 212 &
tsa... :a
•i4•'•a•
5138.000
r.AA.
:O
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A: HWY 4:
MAR -23 -9Z TUE 16:22
R. es
Financing for these improvements would be through a combination
of County tax levy, State Aid allocation, City tax increment
funds and other City resources. Under Minnesota statutes the
local municipalities can use tax increment funds for.roadway
projects within the districts. In addition, the tax increment
statute 469.175 authorizes the County to require the local
authority to dedicate tax increments to pay for certain County
road improvements.
To begin to implement the -initial phase of these highway
improvements the cities of Chanhassen and Chaska along with
Carver County agree in concept to an implementation and financing
plan summarized by the following key elements:
A. Carver County agrees to construct those roadways
identified in Table A in the 1993 -1995 timeframe.
B. Carver County would contract with engineering consulting
firms to prepare plans and specifications on these road
projects with representatives of each of the three
participating governmental entities serving on a
coordinating committee for the projects.
C. The cities of Chaska and Chanhassen would assume
responsibility for acquiring the necessary right -of -way
for projects within their respective communities. For
projects along the joint border between the two
communities the cities would share equally the cost of
total right -of -way acquisitions.
D. Carver County would agree to contribute a total of
$6,569,000 towards the projects which would be funded
through the following allocations:
E. The City of Chaska would agree to contribute $400,000 per
year of tax increment revenues from 1997 through 2001
towards financing of the project. The City of Chaska
would agree to sell bonds in 1994 in order to make a cash
payment to the County of approximately $1,516,000.
Repayment of this debt would come from Chaska's $400,000
annual commitment beginning in 1997.
1 1 ,
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0
1
1
County
State Aid
County
Year
Allocation
Tax Levy
Total
1993
-0-
s 959
$1
1994
$1,323
200,000
1, 523, 000
1995
1,780
1,127,000
2407400
1996
475,000
655,000
1
E. The City of Chaska would agree to contribute $400,000 per
year of tax increment revenues from 1997 through 2001
towards financing of the project. The City of Chaska
would agree to sell bonds in 1994 in order to make a cash
payment to the County of approximately $1,516,000.
Repayment of this debt would come from Chaska's $400,000
annual commitment beginning in 1997.
1 1 ,
n
0
1
1
MArC -2� r'� TUE 1 b :22 P. 04
F. Chanhassen would agree to contribute $1,000,000 of tax
increment in 1993 and $400,000 annually of tax increment
revenues beginning in 1996 through 1999. Chanhassen
would agree to sell debt in order to make a payment of
' approximately $ in 1994 for construction of the
roads. As with Chanhassen the debt would be repaid from
its $400,000 annual tax increment contribution.
G. Chanhassen would agree to an additional contribution of
$1.8 million in the 2000 -2002 timeframe if they are not
required by State statute to cancel their tax increment
districts prior to that timeframe. If, though, the
districts are cancelled Carver County would agree to
contribute an additional tax levy of $1.8 million
' generated in the 2000 -2002 timeframe. This additional
County tax levy would result from new revenues accruing
to the County as a result of the'eanceliing of the
Chanhassen tax increment districts.
'. It is understood that under this scenario a total of $12,969
would be available and could fund the construction of up to
$10,700,000 of highway improvements in the *93 -95 timeframe.
Further, it is understood that the three parties would agree to
execute a joint agreement outlining the details of these
' understandings along with specific contracts for joint
participation in each of the individual County projects.
The efforts to date by each of the parties clearly exhibit the
benefits of developing a cooperative attitudes among local
government units. Hopefully, this draft accurately reflects the
discussions we have had to date, and if you have any questions or
' comments please feel free to contact me at your convenience.
Sincerely,
' Dave Pokorney
City Administrator
t
DP: jai
c: Charles
Mpls., MN
LeFevere, Holmes & Graven, 470 Pillsbury Center,
55402
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