3. Consider Approval of Tax Increment District No. 4MEMORANDUM
CITY OF - 3
CHANHASSEN
-
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739 lldlMl Ad
6idotsed-- ✓..�l�Cl
TO: Don Ashworth, City Manager 1* Submitted to Commissiat
FROM: Todd Gerhardt, Assistant City Manager Oath submitted to Counc#
-.a- -Is' _
DATE: May 16, 1995
SUBJ: Public Hearing Regarding the Approval of Creating Tax Increment Financing
District No. 4 and the Redevelopment Plan
State statute requires that the city hold a public ring when considering establishment of a
new tax increment financing district. Staff has lete their review of the proposed
program and plan and has sent notice to both carver. County and School District 112 (see
Attachment #2). Staff has not received comments from either agency and does not expect to
receive any additional feedback. g
The purpose of this district is to assist wild` the redevelo
Instant Web facility, Frontier Center and'e`xpansion to t
redevelopment of this area would consist of a new facad
existing Country Suites Hotel (see Attachment #3). The
incurred:
Entertainment Center Redevelopment
Land Acquj,5,j4pri/Facade Improvements
Parking
rent of the bowling center, the old
Country Suites Hotel. The
boardwalk and expanding the
allowing costs are anticipated to be
$ 690,000
$ 470,000
Hotel /Conference Center Expansion
Conference Center Land Write -Down
Hotel Land Write -Down
Subtotal
Administrative Expenses
TOTAL
$
59,000
$
230.000
$
289,000
$
50.000
$ 1.799.000
1
Mr. Don Ashworth
May 17, 1995 ,
Page 2
The process being considered to pay for these improvements is a "pay as you go program."
Under this process, the redevelopers (Dan Dahlin, bowling center; Bob Copeland, movie
theater; Herb Bloomberg, Frontier Center) would construct/finance the improvements up front.
The HRA would then enter into a private redevelopment agreement with each of these parties,
establish a minimum market value for each development, then reimburse the redevelopers
their costs for the public improvements and interest (see Attachment #4 for cash flow
assumptions). Staff will be prepared to answer any questions regarding this information at
Monday night's meeting.
In making the decision to approve the district, the city council must find that the creation of a
new tax increment financing plan district is in the best interest of the community, specifically
in the following areas:
1. Provide employment opportunities within the city.
Estimated: 23 New Full Time
42 New Part Time
2. Improve the tax base of the city and the general economy of the city and state.
Estimated new taxes of $219,217.
3. Redevelop an area of blight that exists in downtown Chanhassen that has not been
utilized to its full potential.
RECOMMENDATION
Staff recommends that the city council open the public hearing after staff has completed an
oral presentation on why the city should consider establishing a new tax increment district.
The council should then ask for citizen comments and close the public hearing. If the council
finds that the program/plan for Redevelopment District No. 4 is in accordance with the
overall development of the community, staff recommends that the council adopt the attached
resolution (Attachment #5) approving the creation of the district.
ATTACHMENTS
1. Redevelopment Plan.
2. Letter to Carver County and School District 112.
3. Concept Plan for Redevelopment.
4. TIF Cash Flows.
5. Resolution.
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TAX INCREMENT FINANCING PLAN,
TAX INCREMENT FINANCING DISTRICT NO. 4
CITY OF CHANHASSEN, MINNESOTA
May 22, 1995
This document drafted by:
HOLMES & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337 -9300
RHB87299
CH130 -40
TABLE OF CONTENTS
Page
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT
NO. 4
Subsection A.
Definitions . . . . . . . . . . . . . . . . . . . . .
1
Subsection B.
Statutory Authority . . . . . . . . . . . .
2
Subsection C.
Statement of Objectives . . . . . . . . . . . . . . . .
. 2
Subsection D.
Statement of Public Purpose . . . . . . . . . . . . .
. 2
Subsection E.
Development District Program . . . . . . . . . . . .
. 3
Subsection F.
Description of TIF District . . . . . . . . . . . . . .
. 3
Subsection G.
Development District Contracts . . . . . . . . . . .
3
.
Subsection H.
Classification of TIF District . . . . . . . . . . .
. 3
Subsection I.
Modification of TIF Plan . . . . . . . . . . . . . . .
. 3
Subsection J.
Use of Tax Increment . . . . . . . . . . . . . . .
. 3
Subsection K.
Excess Tax Increment . . . . . . . . . . . . . . .
. 3
Subsection L.
Limitation on Increment . . . . . . . . . . . . .
. 4
Subsection M.
Limitation on Administrative Expenses . . . . . .
4
Subsection N.
Limitation on Boundary Changes . . . . . . . . . . .
. 4
Subsection O.
Relocation . . . . . . . . . . . . . . .
. 4
Subsection P.
Parcels to be Acquired within TIF District . . . . .
. 5
Subsection Q.
TIF Account . . . . . . . . . . . . . . . . . . .
. 5
Subsection R.
Estimate of Costs . . . . . . . . . . . . . . . .
. 5
Subsection S.
Estimate of Bonded Indebtedness . . . . . . . . . .
. 5
Subsection T.
Original TIF Capacity and Tax Increment . . . . . .
. 5
Subsection U.
Duration of the TIF District . . . . .
. 6
Subsection V.
Estimate of Captured Tax Capacity . . . . . . . .
6
Subsection W.
Estimated of Impact on Other Taxing Jurisdiction .
. 6
Subsection X.
Annual Reports . . . . . . . . . . . . . . . . . . . .
. 6
RHB87299
CH130 -40 /i\
1 TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT
NO. 4.
' A. Definitions
' For the purposes of the Tax Increment Financing Plan for Tax Increment
Financing District No. 4, the following terms shall have the meanings specified
below, unless the context otherwise requires:
' "Administrative expenses" means all expenditures of the Authority other than
amounts paid for the purchase of land or amounts paid to contractors or others
providing materials and services, including architectural and engineering services,
directly connected with the physical development of real property in the District,
relocation benefits paid to or services provided for persons residing or businesses
located in the District, or amounts used to pay interest on, fund a reserve for, or
sell at a discount bonds issued pursuant to section 469.178 of the TIF Act.
1 Administrative expenses includes amounts paid for services provided by bond
counsel, fiscal consultants and planning or economic development consultants.
"Authority" means the Housing and Redevelopment Authority in and for the
City of Chanhassen, a public body corporate and politic under the laws of Minnesota;
"City" means the City of Chanhassen, a municipal corporation under the laws
of Minnesota;
"City Council" or "Council" means the Chanhassen City Council;
' "City Development District Act" or "Act" means Minnesota Statutes sections
469.124 through 469.134, as amended;
"Comprehensive Plan" means the City's objectives, policies, standards and
programs to guide public and private land use, development, redevelopment and
preservation for all lands and water within the community;
' "County" means Carver County, Minnesota;
"Development District Program" or "Program" means the Program for the
Downtown Chanhassen Redevelopment Project;
HRA Act means Minnesota Statutes sections 469.001 through 469.047, as
amended;
"Project" means the Downtown Chanhassen Redevelopment Project;
■ "State" means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax increment
bonds issued by the Authority or the City to finance the public costs associated with
the Project as stated in the Program or in the Plan for TIF District No. 4 or any
obligations issued to refund the Tax Increment Bonds;
"Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes
sections 469.174 through 469.179, as amended; and
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CH130 -40 1
"Tax Increment Financing District" or "TIF District" means Tax Increment
Financing District No. 4, which is being created and established within the Project
pursuant to the TIF Act; and
"Tax Increment Financing Plan" or "Plan" means the Plan for TIF District
No. 4, which will be adopted by the Authority on May 22, 1995.
B. Statutory Authority Pursuant to section 469.175, subd. 4 of the TIF
Act, the Authority is authorized to establish tax increment financing districts to
facilitate and provide financing for the development objectives articulated in the
Program. The Authority will operate the TIF District pursuant to the HRA Act and
TIF Act.
C. Statement of Objectives The Authority seeks to achieve the following
objectives through the establishment of TIF District No. 4;
1. provide employment opportunities within the community;
2. improve the tax base of Chanhassen and the general economy of
the City and State;
3. encourage development in areas of the community which have not
been utilized to their full potential;
4. implement relevant portions of the Comprehensive Plan.
The Authority's specific purpose in establishing TIF District No. 4 is to assist
several projects which are proposed in the Project's entertainment district, near the
Chanhassen Dinner Theater. The area to be incorporated into TIF District No. 4 is
currently located within the Project and the Authority's downtown TIF district. The
downtown TIF district was established as a tax increment district prior to August 1,
1979 and has operated as a "pre- 1979" TIF district. As such, it is subject to
termination after April 1, 2001 in accordance with the bond maturities of obligations
issued by the City or Authority prior to April 1, 1991. Too little time remains in the
life of the downtown TIF district to provide adequate assistance to the proposed
developments. In order to lengthen the time during which increment may be
collected and to provide sufficient assistance to induce the proposed development,
the Authority proposes to remove specified parcels from the downtown TIF district
and to incorporate them into TIF District No. 4.
D. State of Public Purpose In adopting the Plan for TIF District No. 4,
the Authority will make the following findings:
1. Anticipated development would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable
future and, therefore, the use of TIF is deemed necessarv:
2. The TIF Plan will afford maximum opportunity, consistent with
the sound needs of the community as a whole, for development of the TIF
District by private enterprise;
3. The TIF Plan conforms to general plans for development of
Chanhassen as a whole; and
4. The area included within TIF District No. 4 qualifies as a
redevelopment TIF district within the meaning of the TIF Act.
RHB87299
CH130 -40
The conclusions to be reached by the Authority regarding the above are based
upon the recommendations of city staff and the planning commission as well as
' the familiarity of members of the HRA with the properties involved and the
likelihood that those properties will develop within the reasonably foreseeable
future solely through private efforts . City staff members have reviewed the
properties and the conditions of the buildings located thereon, as well as
' reviewed the City's building permit files, and have determined that the area
qualifies as a redevelopment TIF district. Staff's findings in this regard are
contained in a report in the Authority's office which will be retained by the
' Authority for the life of TIF District No. 4.
E. Development District Program The plan for development of the City
outlined in the Program will continue to provide the basis of the City's efforts to
' develop portions of the community which have not and remain unlikely to be
developed solely through private efforts. The Plan for TIF District No. 4 is
consistent with the Program for the downtown Chanhassen project area.
F. Description of TIF District The property identification numbers of the
parcels within TIF District No. 4 are included as Exhibit A. A map of the boundaries
of TIF District No. 4 is attached hereto as Exhibit B. Exhibits A and B are
incorporated herein by reference.
G. Development District Contracts The City has not yet entered into a
' development contract with regard to the development of any property within TIF
District No. 4. Contracts regarding property within TIF District No. 4 will be
entered into in accordance with section 469.176, subd. 5 of the TIF Act.
' H. Classification of TIF District TIF District No. 4 qualifies as a
redevelopment TIF district, pursuant to section 469.174, subd. 10 of the TIF Act.
I. Modification of TIF Plan The Plan for TIF District No. 4 may be
modified by the Authority, provided that any enlargement of the geographic area of
the TIF District, increase in amount of bonded indebtedness to be incurred,
including a determination to capitalize interest on the debt if that determination was
' not a part of the original Plan, or to increase or decrease the amount of interest on
the debt to be capitalized, increase in the portion of the captured tax capacity to be
retained by the Authority, increase in total estimated tax increment expenditures or
designation of additional property to be acquired by the Authority shall be approved
upon the notice and after such discussion, public hearing and findings as required
for approval of the original Plan.
' J. Use of Tax Increment. Pursuant to section 469.176, subd. 4 of the TIF
Act, all revenues derived from - TIF District No. 4 shall be used in accordance with
the TIF Plan. The revenues shall be used to finance or otherwise pay the capital and
' administrative costs of development activities within the TIF district as identified in
the Program and Plan.
K. Excess Tax Increment Pursuant to section 469.176, subd. 2 of the TIF
' Act, in any year in which the increment exceeds the amount necessary to pay the
costs authorized by the TIF Plan, the Authority shall use the excess amount to do
any of the following, in the order determined by the Authority:
' 1. prepay the outstanding bonds or other obligations;
2. discharge the pledge of tax increment therefor;
' RHB87299
CH130 -40 3
3. pay into an escrow account dedicated to the payment of bonds or
other obligations; or
4. return the excess amount to the Carver County auditor who shall
distribute the excess amount to the City, the County and school district in
direct proportion to their respective tax capacity rates.
The Authority may also choose to modify the TIF Plan in order to provide for
other public improvements or assistance within the TIF District.
L. Limitation of Increment
1. No increment shall be paid to the Authority from TIF District No.
4 after three years from the date of certification of the original tax capacity
of the property in the TIF district by the county auditor unless within the
three year period (a) bonds have been issued pursuant to section 469.178 of
the TIF Act, or (b) the Authority has acquired property within TIF District
No. 4, or (c) the Authority has constructed or caused to be constructed
public improvements within TIF District No. 4.
2. If, after four years from the date of certification of the original
tax capacity of TIF District No. 4, no demolition, rehabilitation, or renovation
of property or other site preparation, including qualified improvement of a
street or right -of -way adjacent to a parcel but not installation of underground
utility service, including sewer or water systems, have been commenced on a
parcel located within TIF District No. 4 by the Authority or by the owner of
the parcel in accordance with the TIF Plan, no additional increment may be
taken from that parcel, and the original tax capacity of that parcel shall be
excluded from the original tax capacity of the TIF District. If one of these
activities subsequently commences, the Authority shall so certify to the
county auditor, and the tax capacity of the property as most recently certified
by the commissioner of revenue may be added to the TIF District.
3. No tax increment shall in any event be paid to the Authority from
TIF District No. 4 after 25 years from the date of receipt by the Authority of
the first increment.
M. Limitation on Administrative Expenses Pursuant to section 469.176,
subd. 3 of the TIF Act, administrative expenses are limited to 10 percent of the total
tax increment expenditures budgeted or actually incurred, whichever is less. Each
time the Authority increases the budget of TIF District No. 4, the amount of
increment allocated to administrative costs may be increased as long as the total of
administrative expenditures does not exceed 10 percent of the total budget of the
TIF District.
N. Limitation on Boundary Changes The geographic area of TIF District
No. 4 may be reduced, but cannot be enlarged after five years following the date of
certification of the original tax capacity by the Carver county auditor.
O. Relocation Although no relocation is anticipated, the Authority accepts
as binding its obligations under state law regarding relocation benefits and, if
necessary, will administer relocation services for families, individuals and
businesses displaced by public action.
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CH130 -40 4
MAY 18 '95 14 :54 HGLMES a GRAVEN
P.i
P. parcels to Be Ac uired Within the TIF District. The Authority intends
to acquire property wit n TIF District No. and to reset the land to the developer
' at a reduced cost .
Q. TIF Account. a T d by x the Authority in received with
ou zt on its official
' District No. 4 shall be segr ga
books and records.
R . Estimate of Pro . ect Costs . The following costs are authorized for
expenditure within TI District No. 4:
Entertainment Center Redevelopment
Land Acquisition/ Facade Improvements $ 690,000 0 000
'
Boardwalk/ Sidewalk Improvements 3 000
Parking Lot /Landscaping Improvements
Subtotal $1,460,000
Hotel /Conference Center Expansion
Converence Center Land Write -Down $ 59, 000
Hotel Land Write -Down 230,000
Subtotal $ 289, 000
i Administrative Expenses $ 50,000 -
TOTAL $1,799 000
S. Estimate of Bonded Indebtedness. The Authority intends to issue a
limited revenue note in an amount not to exceed $1,500,000 to finance the public
costs associated with the Entertainment Center Redevelopment and authorized by the
' Plan for TIF District No. 4.
T. Ori "nal Tax Capacity and Tax Increment. Pursuant to section 469.177,
subd. 1 of the TIF et, the original tax capacity for TIF District No. 4 is $135,037.
Each year the Carver county auditor will measure the increase or decrease in the
total tax capacity of property in the TIF district. Any year in which the tax
capacity of TIF District No. 4 exceeds $135,037, an increment will be payable to the
Authority. Any year in which the tax capacity is below $135,037, no value will be
captured and no increment will be payable to the Authority.
' Each year after the certification of the original tax capacity, the county
auditor will increase or decrease the original tax capacity of property within TIF
District No. 4 as a result of:
' 1. change in the tax exempt status of the property;
2. reduction or enlargement of the geographic boundaries of the TIF
' District; or
3. reduction of valuation by means of a court - ordered abatement,
stipulation agreement, voluntary abatement made by the assessor or auditor
' or by order of the Minnesota commissioner of revenue.
1
REB87299
cm3o -4o 5
U. Duration of the TIF District In accordance with section 469.176, subd.
1 of the TIF Act, the City wishes to retain its right to receive TIF payments until 25
years from the date of the receipt of the first increment.
V. Estimate of Captured Tax Capacity Pursuant to sections 469.175,
subd. 1 and 469.177, subd. 2 of the TIF Act, the estimated net captured tax
capacity of TIF District No. 4, will be $136,363 after January 2, 1997, for taxes
payable in 1998. The captured tax capacity was estimated in the following manner:
Tax Capacity on January 2, 1997 $271,400
Original Tax Capacity - $135,037
Captured Tax Capacity $136,363
Pursuant to section 469.177, subd. 2 of the TIF Act, it is found and declared
that all of the captured tax capacity generated by TIF District No. 4 is necessary to
finance or otherwise make permissible expenditures authorized by section 469.176,
subd. 4 of the TIF Act.
W. Estimated of Impact on Other Taxing Jurisdiction In is anticipated that
$204,220 in increment will be captured annually within TIF District No. 4. This
increment amount is based on the value of the development on January 2, 1997, for
taxes payable in 1998. For the purposes of estimating increment during the life of
TIF District No. 4, no inflation has been assumed in the value of the new
development. The composite tax capacity rate for the affected property is currently
149.763 percent. Applying the percentage of the total tax capacity rate attributable
to each taxing jurisdiction to the annual increment of $204,220 reveals the annual
"loss" of tax dollars by each jurisdiction if the projects would have occurred without
TIF. Although the Authority believes the actual impact on other taxing jurisdictions
is zero because development would not have occurred within the reasonably
foreseeable future without public intervention, the assumed amount of tax dollars
foregone by each jurisdiction is listed below:
Percent of Tax Increment Attributable
to Various Taxing Jurisdictions
Tax % of
Capacity Total Tax
Taxing Jurisdiction Rate Capacity
City of Chanhassen
Carver County
Independent School District No. 112
Other
TOTAL
25.834
17.2
47.033
31.4
71.221
47.5
5.675
3.9
149.763
100.0
Est. Tax
Loss ($)
$35,228
64,135
97,118
7,739
$204,220
X. Annual Reports Pursuant to section 469.175, subd. 6 of the TIF Act,
the Authority must file an annual financial report regarding TIF District No. 4. The
report shall be filed by July 1 of each year with the school board, the county board
and the state auditor. The report to be filed by the Authority shall include the
following information:
RHB87299
CH130 -40 6
1. the original tax capacity of TIF District No. 4;
2. the captured tax capacity of TIF District No. 4, including the
amount of any captured tax capacity shared with other taxing districts;
' 3. the outstanding principal amount of bonds issued or other loans
incurred to finance project costs in TIF District No. 4;
4. for the reporting period and for the duration of TIF District
' No. 4, the amount budgeted under the TIF Plan and the actual amount
expended for the following categories:
(a) acquisition of land and buildings through condemnation or
purchase;
(b) site improvement or preparation costs;
(c) installation of public utilities or other public improvements;
(d) administrative costs, including the allocated cost of the
Authority;
5. for properties sold to developers, the total cost of the property
' to the Authority and the price paid by the developer; and
6. the amount of tax exempt obligations, other than those reported
under clause (3) , which were issued on behalf of private entities for facilities
' located in TIF District No. 4.
In addition, the Authority must report annually by March 1 to the Minnesota
1 commissioner of revenue the following amounts for the entire municipality:
(1) the total principal amount of nondefeased tax increment financing bonds
that are outstanding at the end of the previous calendar year; and
' (2) the total annual amount of principal and interest payment that are due
for the current calendar year on (i) general obligation tax increment financing
bonds, and (ii) other tax increment financing bonds.
The Authority must annually report to the commissioner of revenue the
following amounts for TIF District No. 4:
(1) the type of district, whether economic development, redevelopment,
housing, soils condition, mined underground space, or hazardous substance site;
' (2) the date on which the district is required to be decertified;
(3) the captured net tax capacity of the district, by property class as
specified by the commissioner of revenue, for taxes payable in the current calendar
year;
' (4) the tax increment revenues for taxes payable in the current calendar
year;
(5) whether the tax increment financing plan or other governing document
permits increment revenues to be expended (i) to pay bonds, the proceeds of which
' RHB67299
CH130 -40 7
were or may be expended on activities located outside of the district, (ii) for deposit '
into a common fund from which money may be expended on activities located outside
of the district, or (iii) to otherwise finance activities located outside of the tax ,
increment financing district; and
(6) any additional information that the commissioner of revenue may
require.
'
RHB87299
CH130 -40
E
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EXHIBIT A
Parcels included within TIF District No. 4. (P.I.D.)
' 25- 118 -00 -10
25- 118 -00 -20
25- 130 -07 -00
25- 195 -00 -20
25- 195 -00 -21
25- 119 -00 -30
25- 119 -00 -40
25- 195 -00 -30
25- 272 -00 -30
25- 272 -00 -20
25- 272 -00 -10
' RHH87299
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MAY 18 '95 14 :54 HOLMES & GRAVEN
Attarneys Q LXw
ROBERT A. ALSOP
RONALD H. BATTY
STEPHEN J. BUBUL
JOIIN B. DEAN
MARY G. DOBBINS
STEFANIE N. GALzy
CORRINE A. HEINE
JAMES S. HOLMES
DArnIJ. KENNEDY
JOHN R. I.ARSON
CLIARLES I.. LEFEVERE
JOHN M. LEFEVRE, JR.
ROBERT J. LINDALL
ROBERT C. L ONO
April 21, 1995
F.=
HOLMES & GRAVEN
CHARTERED
470 PilbtKory Center, MinpeapWir, MiRne3ota 55402
(612) 337 -9300
Faceimiie (612) 337.9314)
JAMES M. STROMMEF
JAMES J. THOMSON. JR.
LARRY M. WERTHEIM
BONNLE L. WILKINS
GARY P. WINTER
JOE Y. YANG
WRITER'S DIRECT DIAL
(612)397.4262
Commissioner Ursula Dirnler
Carver County Board of Commissioners
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
Re: Chanhassen HRA TIF District No. 4
Dear Commissioner Dimler:
DAVID I» GRAVEN (192A.t94t)
OP COUNSEL
ROBERT C. CARLSON
ROBERT L. DAVIDSON
WELLLNGTON H. LAw
T. JAY SALMIN
Pursuant to Minnesota Statutes, section 469.175, subd. 2a, this is to notify you regarding a
proposal by the Chanhassen HRA to establish a new redevelopment TIF district within your
district. The proposed TIF district will be located in downtown Chanhassen, near the Chanhassen
Dinner Theater complex. The HR-As purpose in establishing the new district is to provide
assistance to redevelop several properties adjacent to the Dinner Theater and to encourage an
expansion of a nearby hotel.
Enclosed for your convenience is a draft copy of the TIF Plan. The Plan contains a complete
description of the proposed project as well as a map clearly identifying the properties involved.
The Chanhassen city council will hold a public hearing on the proposed TIF district on May 22,
' 1995 at Chanhassen city hall beginning at 7:30 p.m. The HRA is interested in your comments
and would be happy to meet with you prior to the public hearing to discuss the matter. Please
call Todd Gerhardt, Chanhassen Assistant City Manager, at 937 -1940 if you would like to
schedule a meeting regarding this matter.
ely, `
Ronald H. Batty
' HRA Attorney
RHB/bjm
Enclosures
cc: Todd Gerhardt
CHI30 -SO
MAY 1S '95 1=155 HOLMES & GRAVEN
Attorneys at Law
ROBERT A. AL80P
RONALD H. BATTY
STEPHEN J. BURUL
JOHN B. DEAN.
MARY G. DOBBINS
ST17ANE N. GALEY
CORRINE A. HEINE
JAMES S. HOLmw
DAVID J. KENNEDY
JOHN R. LARSON
cHARLRR L. LMveRt:
JOIN M. LEFEvRE, JB.
ROBERT J. LINVALL
ROBERT C. LONG
I
April 21, 1995
Mr. Dick. Stolz
County Administrator
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
P. 10
HOLMES & GRAVEN
CHARTERED
410 PIA&Wry Canter. Minno0is, MWMMata $502
(612) 337 -9300
Fadmite (612) 337.9310
WRITER'S DIRECT DIAL
(612) 337.9262
JAMES M. STROMMM
JAMES J. THOMSON,
LARRY M. WERTREIM
Soma L. WILMNS
GARY P. 'WINTER
Joe Y. YANG
DAVID L. GRAVEN (1.020ir
OF COUNSEL
ROBERT C. t^ARLSON
ROBERT L. DA VIDSON
V?EAJNQTON H. LAW
T. JAY SALMEN
Re: Chanhassen HRA TIF District No. 4
Dear Mr. Stolz:
This is to notify the school district that the City of Chanhassen will conduct a public hearing on
the captioned matter at the regular city council meeting on May 22, 1995, starting at 7:30 p.m.
in the Chanhassen city hail. The HRA intends to create a new TIF district near the Chanhassen
Dinner Theater complex to assist with the xedevelopment of certain parcels in that area and to
encourage an expansion of a hotel.
Enclosed is a draft copy of the TIF Plan. A representative of the county is invited to attend the
public hearing or you may send written comments regarding this matter to Mr. Don Ashworth,
Chanhassen City Manager.
If you have any questions regarding this matter, please feel free to call Mr. Ashworth at
937 -1900 or myself at 337 -9262.
Sincerely,
Ronald H. Batty
HRA Attorney
RHB/bjm
Enclosures
cc: Todd Gerhardt
r ^ .H$3 ° l419
CHi30 -10
MAY 18 '95 14 :55 HOLMES & GRAVEN
AtUW11078 At Uw
ROBERT A. ALSOP
RONALD H. BATTY
STEPHEN J. BUBUL
JOHN R. DEAN
MARY G. DOBBINS
STEFANIE N. GALIV
CORRINE A. HEINE
JAMES S. HOLMES
DAVID J. KENNEDY
JOHN R. LARSON
CHARLzS L. LEPEVERE
JOHN M. LEFEVRR, JR.
ROBERT J. LINDALL
ROBERT C. LONG
April 21, 1995
Superintendent David Clough
Chaska School District No. 112
110600 'Village Road
Chaska, MN 55318
pApbgile (612) 337 -4310
WRITER'S DIRECT DIAL
(612) 337 -4262
Re: Chanhassen HRA TTF District loo. 4
Dear Superintendent Clough:
P.'3
JAMES M. SrROMMEN
JAMES J. THOMSON, ]A.
LARRY M. WERTHEII1t
BONNIE L. WILKINS
GARY P. WINTER
JOE Y. YANG
DAVID L. GRAVEN (19594001)
OF COUNSEL
ROBERT C. CARLSON
RORZRT L. DAVIDSON
WSLLINCTON H. LAW
T. JAY SALMEN
This is to notify the school district that the City of Chanhassen will conduct a public hearing on
the captioned matter at the regular city council meeting on May 22, 1995, starting at 7:30 p.m.
in the Chanhassen city hall. The HRA intends to create a new TIF district near the Chanhassen
Dinner Theater complex to assist with the redevelopment of certain parcels in that area and to
encourage an expansion of a hotel.
Enclosed is a draft copy of the TIF Plan. A representative of the school district is invited to
attend the public hearing or you may send written comments regarding this matter to Mr. Don
Ashworth, Chanhassen City Manager.
If you have any questions regarding this matter, please feel free to call Mr. Ashworth at
937 -1900 or myself at 337 -9262.
Sincerely,
7?"t't azt
Ronald H. Batty
HRA Attorney
RHB/bjm
Enclosures
cc: Todd Gerhardt
HOLMES & GrRAvEN
CHARTERED
470 PhWwry Center, M101*40al4w, MIAR0014 $542
(612) 337.9300
CH130 -40
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I.
OS11fJ95 MAY 16 5 04 21FM EHLER I` S Y o ASS e aa s n tertefment Center - NO LGA LOSS F ' =/5 Page t'
T.I.F. CASH FLOW ASSUMPTIONS
Inflation Rate'
100.0000%
Pay -As- You -Go Interest Rate:
9.000%
Tax Extension Rate:
1.491763 Pay 95
Fiscal Disparities Rate:
0.00%
School District No. 112 Basic Rate
38.53%
School District No. 112 Sales Ratio:
91.20%
L.G.A. as a Percent of Tax Increment:
28.32%
LGA Investment Rate:
4.000%
p THIS CASH FLOW ASSUMES USING ALL THE 10% ADMINISTRATION TO COVER ANY L.G.A. LOSS.
Class Rate.
Cll
4.6000% Pay 94
PROJECT VALUE INFORMATION
Type of Tax Increment District, New Redevelopment District
PID
BASE VALUE INFORMATION
Tax
Market
Date
Total Market
Total
Current
Tax Capaci Tax Capacity
Value •
Value
Tax Cap acity
Taxes_
27,4488
25- 118 -00 -10 Conf. Center
114,700
5,276
_
7,871
Pay 95
25 118 - 00 - 20 Hotel
35,782
1,646
2,455
Pay 95
25- 130 -07 -00 Retail Phase 1
974,300
44,818
66,858
Pay 95
25- 195 -00 -20 Bowling
3.00% 1
53,600
79,958
Pay 95
25- 195 -00 -21 Bowling
137,000
6,302
9,401
Pay 95
25- 195 -00 -30 Movie
378,400
17,406
25,966
Pay 95
25- 272 -00 -30 Outlot C
0
0
0
Pay 95
25 272 - 00 - 20 Outlot B
0
0
0
Pay 95
25- 272 -00.10 Outlot A
0
_ 0
M ._0 .
Pay 95
146,952
2,840,182
129,048_
192,514
Class Rate.
Cll
4.6000% Pay 94
PROJECT VALUE INFORMATION
Type of Tax Increment District, New Redevelopment District
PID
Total
Tax
Market
Date
Date
Tax
Taxes _ C apaci�
Tax Capaci Tax Capacity
Value •
- Assessable
Payable
25- 118 -00 -10 Conf. Center
27,4488
18,400
400,000
1996
1997
25- 118.00 -20 Hotel
89,207
59,800
1,300,000
1996
1997
25- 130 -07.00 Retail Phase 1
96,070
64,400
1,400,000
1997
1998
25- 195 -00 -20 Bowling
137,242
92,000
2,000,000
1996
1997
25- 195.00 -21 Bowling
17,406
41,400
23,994
35,793
25- 272 -00 -30 Outlot C
25- 195 -00 -30 Movie
61,759
41,400
900,000
1996
1997
25- 272 -00 -30 Outlot C
0
0
25- 272 -00 -10 Outlot A
0
0
25- 272 -00 -20 Outlot B
0
T otal
1.29,Q48
_.278,000__
146,952
25- 272 -00 -10 Outlot A
Total
41.1,727
276,Q00
6,000.000
TAX INCREMENT INFORMATION
Base
Project
Captured
Tax
Tax Capaci Tax Capacity
Tax Capacity
Increment
25- 118 -00 -10 Conf. Center
5,276
18,404
13,124
19,578
25- 118 -00 -20 Hotel
1,646
59,800
58,154
86,752
25- 130 -07.00 Retail Phase 1
44,818
64,400
19,582
29,212
25. 195 -00 -20 Bowling
59,902
92,000
32,098
47,883
25- 195 -00 -21 Bowling
0
0
0
0
25- 195 -00 -30 Movie
17,406
41,400
23,994
35,793
25- 272 -00 -30 Outlot C
0
0
0
0
25- 272 -00.20 Outlot B
0
0
0
0
25- 272 -00 -10 Outlot A
0
0
0
0
T otal
1.29,Q48
_.278,000__
146,952
219.217
t I Oa -o2
Preparod+bv PubLrnm Inv
Q`�1sis5 MAY 16
'95 04 :21PM EHLERS &_, ASSOCIATES , ntertalnment Omer -NO LGA LOSS
P. 3 /5
T AX INCREMENT T OTA L FL
7PER10D
Base
Project
Captured
Semi - Annual
Adm1n.
Net
BEGINNING
Tax
Tax
Tax
Gross Tax
at
Tax
L.G.A.
L.G.A,
PERIOD ENDING
YIS M
Yr
C_ a aci _ Capacity .
Cap 2Lty I ncrement
_ 10.00%
Incre
Phase I
28.32%
Yrs. Mth.
Yr.
0,4 06.01
1995
129,048
129,048
0
0
0
0
0.00%
0 0.0 02 -01
19'9
'
0,002-01
1996
129,046
129,048
0
0
0
0
0.00%
0 0.0 08 -01
1996;
0.008-01
1996
129,048
129,048
0
0
0
0
0.00%
0 0.002-01
1997
0.0 02 -01
1997
129,048
256,418
127,369
95,003
9,500
85,502
0.00%
0
0-008-01
19971
0,001-01
1997
129,048
256,418
127,369
95,003
9,500
65,502
0,00%
0
0.502-01
1998
0.502-01
1998
129,048
276,000
146,952
109,609
10,961
98,648
0.00%
0
1.008-01
1998
11008-01
1998
129,048
276,000
146,952
109,609
10,961
98,648
0.00%
0
1.502-01
1999
1.602-01
1999
129,048
276,000
146,952
109,609
10,961
98,648
0100%
0
2.008-01
1999
2-008-01
1999
129,048
276,000
146,952
109,609
10,961
98,648
0.00%
0
2.502-01
2000
'
2.502-01
2000
129,048
276,000
146,952
109,609
10,961
98,648
0.00%
0
3.008-01
2000
3.008-01
2000
129,048
276,000
146,952
109,609
10,961
98,648
0,00%
0
3.502-01
2001
3.5 02 -01
2001
129,048
276,000
146,952
109,609
10,961
98,648
0.00%
0
4.008-01
2001
4,0 01 *11
2001
129,048
276,000
146,952
109,609
10,961
96,648
6.25%
1,940
4.502-01
2002
4.5 02 -01
2002
129,048
276,000
146,952
109,609
10,961
98,648
6.25%
1,940
5.008-01
2002
5.0 08 -01
2002
129,048
276,000
146,952
109,609
10,961
98,648
12.50%
3,880
5.502-01
2003
5.502-01
2003
129,048
276,000
146,952
109,609
10,961
98,648
12.50%
3,880
6.0 08 -01
2003
6,1011-01
2003
129,046
276,000
146,952
109,609
10,961
98,648
18.75%
5,820
6.502-01
2004
6-502-01
2004
129,048
276,000
146,952
109,609
10,961
98,648
18.75%
5,820
7,008-01
2004
7.0 08 -01
2004
129,048
276,000
146,952
109,609
10,961
98,648
25.00%
7,760
7.502-01
2005
7.502-01
2005
129,048
276,000
146,952
109,609
10,961
98,648
25.00%
7,760
8.0 08 -01
2005
'
8,1101-01
8.502-01
2005
2006
129,048
129,048
276,000
276,000
146,952
146,952
109,609
109,609
10,961
10,961
98,648
98,648
31,25%
31.25%
9,701
9,701
8.502-01
9.0 08 -01
2006
2006
9,008-01
2006
129,048
276,000
146,952
109,609
10,961
98,648
37,50%
11,641
9.5 02 - 01
2007
9.502-01
2007
129,048
276,000
146,952
109,609
10,961
98,648
37,50%
11,641
10-008-01
2007
10.0 08 -01
10.5 02 -01
2007
2008
129,048
129,048
276,000
276,000
146,952
146,952
109,609
109,609
10,961
10,961
98,648
98,648
43.75%
43.75°
13,581
13,5811
10.502-01
11,0 08 -01
2008
2008
11-008-01
2008
129,048
276,000
146,952
109,609
10,961
98,648
50.00%
15,5211
11.5 02 -01
2009
11.5 02 -01
2009
129,048
276,000
146,952
109,609
10,961
98648-
50.00%
15,521
1 12,0 08 -01
2009
12.0 08 -01
2009
129.048
276,000
146,952
109,609
10,961
98,648
56.25%
17,461
12.502-01
2010
12.5 02 -01
2010
129,048
276,000
146,952
109,609
10,961
98,648
56.25%
17,461
13.0 08 -01
2010
13.0 08 -01
2010
129,048
276,000
146,952
109,609
10,961
98,648?
62.50%
19,401
13.5 02.01
2011
13.5 02 -01
2011
129,048
276,000
146,952
109,609
10,961
98,648
62.50%
19,401
14.008-01
20111
14.008-01
2011
129,048
276,000
146,952
109,609
10,961
98,648
68.75%
21,341
14.502-01
20121
'
14-502-01
2012
129,048
276,000
146,952
109,609
10,951
98,648
68.75%
21,341
15.008-01
2012 j
15,008-01
15.5
2012
129,048
276,000
146,952
109,609
10,961
98,648
75.00%
23,281
15.502-01
2013
02 -01
16.008-01
2013
129,048
276,000
146,952
109,609
10;961
98,648
75.00%
23,281 I
16.0 08 -01
20131
2013
129,048
276,000
146,952
109,609
10,961
98,648
81,25%
25,2221
16.502-01
2014'
' 16.5
02 -01
2014
129,048
276,000
146,952
109,609
10,961
98,646
81.25%
25,222
17,0 08 -01
2014,
f
17.0 08.01
2014
129,048
276,000
146,952
109,609
10,961
98,648
67.50%
27,162
17.5 02 -01
2015]
17-502-01
2015
129,048
276,000
146,952
109,609
10,961
98,648
87.50%
27,162
18.008-01
201$
I !
18.0 08 -01
2015
129,048
276,000
146,952
109,609
10,961
98,648
93.75%
29,102
18,502-01
2016
1
18.5 02.01
2016
129,048
276,000
146,952
109,609
10,961
98,648
93.75%
29,102
19.008-01
2016
19.0 08 -01
2016
129,048
276,000
146,952
109,609
10,961
98,648
100.00%
31,042
19.5 02 01
2017
19.5 02 -01
2017
276,00o
276,000
0
0
0
0
100.00%
0
20.008-01
20171
20.0 08 -01
2017
276,000
276,000
0
0
0
0
100.00%
0
20,502-01
2018'
20.5 02 -01
2018
276,000
276,000
0
0
0
0
100.00%
0
21.008-01
20181
21.0 08 -01
2018
276,000
276,000
0
0
0
0
100.00%
0
21.502-01
20191
21.5 02 -01
2019
276,000
276,000
0
0
0
0
100.00%
0
22.008-01
2019
22.0 08 -01
2019
276,000
276,000
0
0
0
0
100.00%
0
22.502-01
20211
22.502-01
2020
276,000
276,000
0
0
0
0
100.00%
0
23,008-01
2020
23.0 08 -01
2020
276,000
276,000
0
0
0
0
100.00%
0
23.5 02 -01
2021;
23.5 02 -01
2021
276,000
276,000
0
0
0
0
100.00%
0
24.008-01
2021
24.008-01
2021
276,000
276,000
0
0
0
0
100.00%
0
24-502-01
2022'
24.5 02.01 ,
2022
276,000
276.0
0
0
0
0
100.00%
0.
2.5.008-01
202
Totals
Present values
__ _
4,355,1
1,743,4
435,513
3,919
49
279,873
1,569,
262 ,158
t I Oa -o2
Preparod+bv PubLrnm Inv
05/16/95 MAY 16 '95 04: 22PM EHLEPS R ASSOCIATES
airy or unannassen - Entortainmenl Confer - NO LGA LOSS
0.006
0.002
0.0 08
0.0 02
0.0 0$
0.5 02
1,008
1.502-
2.008-
2.502-
3.0 08
3.502-
4.0 08-
4.502
5.008-
5.502-
6.0 08-
6.5 02
7.0 08-
7.5 02
8.0 08-
8.5 02-
9.008
9.502-
10.008-0
10-502-0
11.0 08 -0
11,502-0
12.008-o
12.5 02 - 0
13.0 08 -0
13.502-o
14.008-0
14.5 02 -
15.008-01
15.5 02 -0
16.008-01
16.502-01
17.0 08 -01
17.5 02 -01
18.0 08.01
18.5 02 -01
19.0 08 -01
19.502-01
20.008-01
20.5 02 -01
21-008-01
21.5 02 -01
22.0 08 -01
22.502-01
23.0 08 - 01
23.5 02 -01
24.0 08 -01
24.5 02 -01
P. 4/5
Pa
_ T
T AX INCREME PRO C FL
BEGINNING T
Conf. Center H
Hotel R
Retail 6
6owfing M
Movle C
Conf. Center H
Hotel B
Balance
Ith. Yr. I
Inc I
Tax T
Tax T
Tax T
T
58.7 33_ Paymen 2
-41 1995 0
0 p
p
230,000 I
Increment Y s, Mt h. DIN Yr .
01 1996 p
p p
p 0
0 0
0 0
0 0
0 0
0 0
0 0.0 02.01 1
199
-01 1996 0
0 p
p 0
0 0
0 0
0 0.008-01 1
199
01 1997 9
9,789 4
43,376 0
0 2
23,840 1
17,836 0
(9,789) (
(38,$33) 4
0 0.002-01 1
1997
0 2
23,941 1
17,896 (
CA 100 -02
05/16i55 MAY 16 '95 04 : 23PM EHLERS _& ASSOCIATES P.5/5 5/5
ntortainmeni Center - NO LGA LOSS
F ago <
L. G. A C ASH FLOW
1 100 -02
PERIOD BEGINNING
Beg,
Interest
Admin.
L.G.A-
Ending
PERIOD ENDING
Yrs- M th-
Yr.
B alance
4. 00%
P_ ffinen
Payment
Balance
Y Mth.
Yr.
0-066-01
1995
0
0
0
0
0
0.002-01
_
19961
0.0 02 -01
1996
0
0
0
0
0
0 -0 08 -01
1;796]
0.008-01
1996
0
0
0
0
0
0.002-01
1 997 j
'
0.0 02 -01
1997
0
0
9,500
0
9,500
0.0 08 -01
1997
0,008-01
1997
9,500
190
9,500
0
19,191
0.5 02 -01
1998'
0,502-01
1998
19,191
384
10,961
0
30,535
1.0 08 -01
1998
100801
1998
30,535
611
10,961
0
42,107
1.502-01
1999
'
1.5 02 -01
1999
42,107
$42
10,961
0
53,910
2.008-01
1999
2.0 08 -01
1999
53,910
1,078
10,961
0
65,949
2.502-01
2000
2.502-01
2000
65,949
1,319
10,961
0
78,229
3 -0 08 -01
2000
3.008-01
2000
78,229
1,565
10,961
0
90,754
3.502-01
2001
'
3.502-01
2001
90,754
1,815
10,961
0
103,530
4.008-01
2001
4.0 08 -01
2001
103,530
2,071
10,961
(1,940)
114,621
4.502-01
2002
4.502-01
2002
114,621
2,292
10,961
(1,940)
125,934
5.008-01
2002
5.008-01
2002
125,934
2,519
10,961
(3,880)
135,534
5.5 02 -01
2003
'
5.5 02 -01
2003
135,534
2,711
10,961
(3,880)
145,325
6.008-01
2003
6,008-01
2003
145,325
2,906
10,961
(5,820)
153,372
6.502-01
2004
6.5 02.01
2004
153,372
3,067
10,961
(5,820)
161,580
7.0 08 -01
2004
7.008-01
2004
161,580
3,232
10,961
(7,760)
168,012
7.502-01
2005
'
7.502-01
2005
168,012
3,360
10,961
(7,760)
174,572
8.0 08 -01
2005
8.008-01
2005
174,572
3,491
10,961
(9,701)
179,324
8.5 02 -01
2006
8.502-01
2006
179,324
3,586
10,961
(9,701)
184,171
9,003-01
20061
9.008-01
2006
184,171
3,683
10,961
(11,641)
187,174
9.502-01
2007+'
'
9.502-01
2007
187,174
3,743
10,961
(11,641)
190,238
10.0 08 -01
20071
10-008-01
2007
190,238
3,805
10,961
(13,581)
191,423
10.502-01
2008'
10.502-01
2008
191,423
3,828
10,961
(13,581)
192,631
11.0 08 -01
2008
'
11,008-01
2008
192,631
3.853
10,961
(15,521)
191,924
11.502-01
20091
11.5 02 -01
2009
191,924
3,838
10,961
(15,521)
191,202
12.008-01
2009
12.008-01
2009
191,202
3,824
10,961
(17,461)
188,526
12.502-01
2010 1
12,502-01
2010
188,526
3,771
10,961
(17,461)
185,796
13.008-01
2010?
13.0 03 -01
2010
185,796
3,716
10,961
(19,401)
181,072
13.502-01
20111
13.502-01
2011
161,072
3,621
10,961
(19,401)
176,253
14.0 08 -01
2011
14-008-01
2011
176,253
3,525
10,961
(21,341)
169,$98
14.502-01
2012
14.502-01
2012
169,398
3,388
10,961
(21,341)
162,405
15-008-01
2012
15,008-01
2012
162,405
3,248
10,961
(23,281)
153,333
15.502-01
2013
15-502-01
2013
153,333
3,067
10,961
(23,281)
144,079
16.008-01
20131
16.0 08 -01
2013
144,079
2,882
10,961
(25,222)
132,699
16.502-01
20141
16.5 02 -01
2014
132,699
2,654
10,961
(25,222)
121,093
17.008-01
20141
17.008-01
2014
121,093
2,422
10,961
(27,162)
107,314
17 -5 02 -01
2015]
17.502-01
2015
107,314
2,146
10,961
(27,162)
93,259
18.008-01
2015
18-008-01
2015
93,259
1,865
10,961
(29,102)
76,983
18.502-01
2016,
18.5 02-01
2016
76,983
1,540
10,961
(29,102)
60,382
19.0 08 -01
201 Ell I
19-008-01
2016
60,382
1,208
10,961
(31,042)
41,509
19.502-01
20171
19.502-01
2017
41,509
$30
0
0
42,339
20.008-01
2017+
20.008-01
2017
42,339
647
0
0
43,186
20.5 02.01
2018,
20.5 02 -01
2018
43,186
864
0
0
44,049
21.008-01
20181
21.0 08 -01
2018
44,049
861
0
0
44,930
21-502-01
2019'
21.50201
2019
44,930
899
0
0
45,829
22.0 08 -01
2019!
22.0 08 -01
2019
45,829
917
0
0
46,746
22.502-01
2020
22.5 02 -01
2020
46,746
935
0
0
47,681
23.008-01
20201
23.0 08 -01
2020
47,681
954
0
0
48.634
23.5 02 -01
2021
23.5 02.01
2021
48,634
973
0
0
49,607
24.008-01
2021
OF
24.008-01
2021
49,607
992
0
0
50,599
24.502-01
2022
24.5 02 -01
2022
50,599
1 012
0
0
51,611
25.
2022
T otals
112,
_4 35,513 .,,
4( 96,6
1 100 -02
MAY 16 '95 14:51 HGLMES & GRAVEN
CITY OF CHANHASSEN
P..
CARVER AND HENNEPIN COUNTIES, MINNESOTA
Date Resolution No.
Motion By Seconded By
RE SOLUTION ADOPTING A
TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING
DISTRICT NO. 4
BE IT RESOLVED By the City Council of the City of Chanhassen, Minnesota as follows:
Section 1, Recitals.
1.01, The Mousing and Redevelopment Authority in and for the city of Chanhassen (the
"Authority ") and the city council of the city of Chanhassen (the "City ") approved a
redevelopment project for the downtown Chanhassen area (the "Project ") and adopted a
redevelopment plan and tax increment financing plan (the "Project Plans ") for same on November
29, 1977, and December 19, 1977, respectively.
1.02. Due to changes in the focus and alterations in the boundaries of the Project, the
Project Plans have been the subject of numerous modifications since their adoption in 1977.
1.03. In light of recent development proposals and the limited duration of the downtown
Chanhassen tax increment financing district, it has been proposed to remove selected properties
from the downtown tax increment financing district (the "Deleted Properties ") and to include
them in a new tax increment financing district to be called Tax Increment Financing District No.
4 ( "TIF District No. 4 ").
1.04. The Authority has investigated the facts and has caused to be prepared a tax
increment financing plan (the "Plan") describing the specific acts to be taken to assist
development within TIF District No. 4, which tax increment district remains within the
boundaries of the Project. The Plan is contained in a document entitled "Tax Increment
Financing Plan, Tax Increment Financing District No, 4, Housing and Redevelopment Authority
in and for the City of. Chanhassen ", dated May 22, 1995 and on file at city hall.
1.05. The City has performed all actions required by law to be performed prior to the
establishment of TIF District No. 4 and the adoption of the Plan relating thereto, including, but
not limited to, notification of Carver County and Independent School District No. 112; a review
by the City planning commission of the Plan for its consistency with the general plans for
RHB8 8975
CH150 -40C -�
MAY 18 '95 14:52 HOLMES & GRAVEN
'
P.4
' development of the City; approval of the Plan by the Authority; and holding a public hearing
before the city council regarding the Plan upon such notice as is required by law.
1„06. The city council has fully reviewed the contents of the Plan and has on this date
conducted a public hearing thereon at which the views of all interested persons were heard.
Section 2. Findings Related to the Establishment of Tax Increment Financing District
No. 4
' 2.01. It is the opinion of the city council that development of the properties included
within TIF District No. 4 would not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future due to the lack of an adequate public
investment and that the use of tax increment financing is therefore necessary.
'
2.02. The council finds that the Plan for TIF District No. 4 conforms to the general plan
for development of the City, based upon the recommendations of the planning commission.
2,03. The council finds that the Plan for TIF District No. 4 will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for development of the
Project by private enterprise.
intended,
2.04. The council further finds that the establishment of TIF District No. 4 is
and in the judgment of the city council, its effect will be to promote the public purposes and
'
accomplish the objectives specified in the Plan.
2.05. The City has caused a study to be conducted by the building official of the area
'
to be included within TIF District No. 4. The building official has verified that parcels
containing at least 70 percent of the area of TIF District No. 4 are improved and that more than
50 percent of the buildings thereon are substandard. The report has been reviewed by the city
No. 4.
council and shall be retained on file at city hall for the duration of the TIF District
2.06. The council has relied upon the opinions and recommendations of its staff and
planning commission and the personal knowledge of the members of the council in reaching its
conclusions regarding the creation of TIF District No. 4.
2.07.The council hereby finds that Tax Increment Financing District No. 4 is
redevelopment tax increment financing district within the meaning of Minnesota Statutes §
'
469.174, Subd. 10.
Section 3. Deletion of Properties- A roval of Tax Increment Financing Plan;
Establishment of Tax Increment Financing District No. 4
3.01 The City hereby approves and endorses the actions by the Authority to remove the
'
Deleted Properties from the downtown tax increment financing district and to have the Carver
coanty auditor adjust the original tax capacity of said district accordingly.
RHB88975 2
CH130 -40
MAY 18 '95 14:52 HOLMES R GRAVEN
P.
3.02. The Plan for TIF District loo. 4 is hereby approved and adopted. TIF District No.
4 is hereby established.
3.03. The boundaries of TIF District No. 4 are described in the Plan and are
incorporated herein by reference.
3.04. The City elects to be governed by Minnesota Statutes § 469.177, Subd. 3(a), with
regard to fiscal disparities for TIF District No. 4.
3.05. The City Manager is authorized and directed to transmit a certified copy of this
resolution together with a certified copy of the Plan to the auditor of Carver County with a
request that the original tax capacity of the property within TIF District No. 4 be certified to the
Authority and the City pursuant to Section 469.177, Subd. 1 of the Tax Increment Financing Act
and to file a copy of the Plan with the Minnesota commissioner of revenue.
3.06. The City may, at the appropriate time, take action to issue and sell its general
obligation bonds pursuant to the Tax Increment Financing Act to finance the costs identified in
the Plan for TIF District No. 4.
3.07. The City Manager is authorized to transmit a copy of this resolution to the
Authority.
DATED: May 22, 1995
ATTEST:
Donald mie , Mayor
15onal3 Ashworth, City Clark/Manager
RHB88975
CH13G -0 3