3. Modification No. 13 to Redevelopment & Tax Increment Financing Plans for Downtown Chanhassen3
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739 , b C' Ad I Ls 4
TO: Don Ashworth, City Manager
on y ity f m n t
Endo rsed V a�U f�
Modified.
Rejecte
D. — l0 A
Bate Submitted to Commission
' FROM: Todd Gerhardt, Assistant City Manager T I —
Date Submitted to Council
' DATE: March 10, 1994
SUBJ: Public Hearing for Modification No. 13 of the Redevelopment Tax Increment
Financing Plan
' Attached for the city council's consideration is Modification No. 13 to the Redevelopment Tax
Increment Financing Plan. Under state statute; the city council must hold a public hearing
approving the proposed changes as outlined iri�the�Redevelopment Plan (see Attachment #1).
Both the HRA and Planning Commission have ;approved the modifications and found them to be
consistent with the overall development of the Downtown Plan.
;ter
The city council authorized the public hearing at their February 14, 1994 meeting and also asked
staff to give a breakdown of the costs for �the Hanus facility remodeling project (see Attachment
#2).
' Listed below are the ro osed modifications to the Redevelopment Plan:
P P p t an.
' TIF Plan for Downtown
1. Acquisition of land for the pedestrian= bridge.
2. Roadway rades for. L. man
y pg y Boulevard, Powers Boulevard, and .State Highway 101
(Joint Powers Agreement with Carver County).
3. Use tax increment dollars to build a pedestrian bridge.
i 4. Use tax increment dollars to build a parking lot, trails, and landscaping around the Hanus
facility and old Apple Valley Red -E -Mix sites.
5. Acquisition of the Willie Klein property for future Highway 101 right -of -way.
MEMORANDUM
Mr. Don Ashworth
March 10, 1994
Page 2
6. Acquisition of Donald McCarville property next to the Chanhassen Inn.
Changes to the Proiect Area Boundaries
1. Include State Highway 101 north of Highway 5 to Townline Road.
2 Include the area between Audubon Road to the east, State Highway 101 to the west, and
those lands north of Lyman Boulevard (see Attachment #3).
A copy of the plan has also been sent to School District 112 and Carver County for their review
and comment. Staff has not yet received any feedback to date from either of the two agencies
(see Attachment #4).
RECOMMENDATION
Staff recommends that the city council adopt the following motion:
"The city council adopts the attached resolution approving Modification No. 13 of the
Redevelopment Plan and TIF Plan for the Chanhassen Redevelopment Project." (See
Attachment #5)
ATTACHMENTS
1. Plan Modification No. 13
2. Hanus Facility cost breakdown
3. Project boundary maps
4. Letters to School District/Carver County
5. Resolution
REDEVELOPMENT PLAN
AND
TAX INCREMENT FINANCING PLAN
FOR
DOWNTOWN CHANHASSEN REDEVELOPMENT AREA
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE
CITY OF CHANHASSEN
MODIFICATION NO. 13
March 14, 1994
Prepared By:
HOLMES & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, Minnesota 55402
1
TABLE OF CONTENTS '
Page
Q
1
'
I. Redevelopment Plan . . . . . . . . . . . . . . . . . . . . . . . . .
. . . .
A.
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 1
B .
Project Area . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 2
'
C .
Project Area Redevelopment Objectives . . . . . . . . . . .
. . . . 2
D .
Proposed Project Area Redevelopment Activities . . . . . .
. . . . 3
E .
Project Area Plan . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 4
F .
Project Area Financing . . . . . . . . . . . . . . . . . . . . .
. . . . 5
II. Tax
Increment Financing Plan . . . . . . . . . . . . . . . . . . . .
. . . . 6
,
A.
Statutory Authority . . . . . . . . . . . . . . . . . . . . . .
. . . . 6
B .
Statement of Objectives . . . . . . . . . . . . . . . . . . . .
. . . . 6
C.
Statement of Public Purpose . . . . . . . . . . . . . . . . .
. . . . 7
'
D.
Relation to Redevelopment Plan . . . . . . . . . . . . . . .
. . . . 7
E.
Boundaries of TIF District
. . . . 7
7
F.
Description of Downtown Redevelopment Area . . . . . .
. . . .
'
G.
Development and Other Agreements . . . . . . . . . . . . .
7
H.
History and Classification of TIF District . . . . . . . . . .
. . . . 8
I.
Modification of TIF Plan . . . . . . . . . . . . . . . . . . . .
. . . . 8
J .
Use of Tax Increment . . . . . . . . . . . . . . . . . . . . .
. . . . 8
'
K .
Excess Tax Increment . . . . . . . . . . . . . . . . . . . . .
. . . . 9
L.
Duration and Modification of the TIF District . . . . . . . .
. . . . 9
M .
Relocation . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 9
'
N.
Properties to be Acquired Within the TIF District . . . . .
. . . . 9
O.
Public Improvements Plans . . . . . . . . . . . . . . . . . .
. . . 10
P.
Estimate of Project Costs . . . . . . . . . . . . . . . . . . .
. . . 10
'
Q.
Original Tax Capacity . . . . . . . . . . . . . . . . . . . . .
. . . 12
R.
Estimate of Captured Tax Capacity and Tax Increment . .
. . . 12
S.
Estimate of Impact on Other Taxing Jurisdictions . . . . .
. . . 12
T.
Annual Report Regarding TIF . . . . . . . . . . . . . . . .
. . . 12
'
Q
(i)
,
' I. REDEVELOPMENT PLAN
A. DEFINITIONS
' For the purposes of the Redevelopment Plan and Tax Increment Financing
Plan, the following terms shall have the meanings specified below, unless the context
otherwise requires:
"City" means the City of Chanhassen, a municipal corporation under the laws
of the state of Minnesota;
' "Comprehensive Plan" means the City's Comprehensive Plan, including the
objectives, policies, standards and programs to guide public and private land use,
' development, redevelopment and preservation for all lands and water within the
City;
"City Council" or "Council" means the Chanhassen City Council;
' "County" means Carver County, Minnesota;
' "HRA Act" means Minnesota Statutes sections 469.001 through 469.047, as
amended;
' "Housing and Redevelopment Authority" or "HRA" means the Housing and
Redevelopment Authority in and for the City of Chanhassen, Minnesota, created
pursuant to the HRA Act;
' "Redevelopment Plan" means the plan for redevelopment of the Project,
originally adopted by the City on December 19, 1977, and as subsequently modified;
' "Redevelopment Project" or "Project" means the redevelopment project
established by the City on December 19, 1977, in downtown Chanhassen and
expanded on December 18, 1978, to include the Chanhassen Lakes business park
south of T. H. 5, pursuant to Minnesota Statutes sections 469.001 through 469.047;
State means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax increment
bonds issued by the City to finance the public costs associated with the Project as
stated in the Redevelopment Plan and in the TIF Plan, or any obligations issued to
' refund the Tax Increment Bonds;
"Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes
sections 469.174 through 469.179, as amended; and
Tax Increment Financing District means the tax increment financing district
established within the downtown redevelopment area and the Chanhassen Lakes
business park area;
"Tax Increment Financing Plan" or "TIF Plan" means the plan by which the
HRA intends to assist development within the Project, which Plan was originally
adopted on December 19, 1977, and as subsequently modified. This marks the
thirteenth formal modification of the TIF Plan.
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B . PROJECT AREA
The Chanhassen Downtown Redevelopment Project Area contains
approximately 2,200 acres of land. One hundred seventy -five acres are
located north of T.H. 5 and comprise what is generally recognized as
downtown Chanhassen. The remainder of the Project Area is south of T.H.
5 in the Chanhassen Lakes business park and other areas. The Project Area
officially includes all lands shown in Figure 1 of this Modification No. 13.
Approximately 1,519 acres is being added to the Project Area as a result of
this modification in order to accommodate the Chanhassen/ Carver County road
construction projects detailed herein. This represents an expansion of the
Project Area but not of the tax increment financing district.
The Project Area is generally described as being bounded by Audubon
Road on the west, and then follow T. H. 5 west to Galpin Boulevard, then
north approximately five hundred (500) feet, then the line is extended due
east to Laredo Drive, then south to West 78th Street, then east to T.H. 101
which is the T.H. 5 , also including lands west of T.H. 101, then south of
T. H. 5 to the Lake Drive East and Dakota Avenue intersection, then east to
the old and current alignment of T. H. 101 south, but also including lands east
of T. H. 101 and Lyman Boulevard on the south.
C. PROJECT AREA REDEVELOPMENT OBJECT
The HRA through this Redevelopment Plan seeks to achieve the
following objectives:
1. Diversify the tax base of the City by encouraging commercial and
industrial development which in turn will enhance employment
opportunities, create stability in the tax base and increase and
protect property values;
2.
3.
4.
5.
6.
7.
8.
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Encourage redevelopment of commercial and service - oriented
businesses to better serve the consumer needs of the community;
Remove structurally substandard buildings which cannot be
rehabilitated;
Acquire and remove buildings that are economically or
functionally obsolete or under utilized and acquire land that is
vacant or under utilized to facilitate redevelopment;
Eli minate blighting influences which impede potential development
in the area; _
Provide redevelopment sites of the size and character necessary
to assure development of the area and strengthen the overall
economy and improve the sources of public revenue;
Promote industrial
opportunities and
community;
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development, provide increased employment
supplement the financial base of the
Provide land for publicly assisted housing;
I
' 9. Provide land for needed expansion of existing businesses in the
area;
10. Provide adequate street, utility and other public improvements
and facilities to enhance the area for both new and existing
development;
' 11. Achieve rehabilitation of buildings when economically feasible;
12. Accomplish the applicable goals of the City's Comprehensive
' Plan;
13. Provide maximum opportunity, consistent with sound needs of
' the City as a whole, for redevelopment by private enterprise;
14. Provide general design guidance in conjunction with suitable
' development controls in order to enhance the physical
environment of the area;
15. Encourage and facilitate involvement of the community in
resolving neighborhood problems related to business, physical
structures and land use; and
' 16. Provide financial incentives as appropriate to stimulate growth
and private sector redevelopment efforts within the Project Area.
D. PROPOSED PROJECT AREA REDEVELOPMENT ACTIVITIES
' The stated objectives of the Redevelopment Plan are intended to be
accomplished through the following actions of the HRA :
' 1. Clearance and redevelopment;
2. Relocation of buildings and the inhabitants of buildings;
3. The provision of building sites for new and expanding
businesses;
4. Vacation of rights -of -way;
5. Dedication of new rights -of -way;
6. Land acquisition and leasing;
' 7. Soils corrections and land preparation;
8. A Special Assessment Reduction Program designed to stimulate
development within the Project Area;
9. New construction, or improvement of public streets and parking
lots;
10. Installation or replacement of public facilities and utilities;
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11. Financial subsidies to induce businesses to locate within the '
Project Area; and
12. Landscaping and streetscape improvements. '
E. PROJECT AREA PLAN
Figure 2 of Modification No. 11, dated April 17, 1992 portrays the
overall plans for the Project Area. Plan highlights include the following:
1. The Chanhassen Lakes business park comprising 450 acres, fully '
served by sewer, water and landscaped streets;
2. The downtown redevelopment area which is intended to be ,
redeveloped for a multiplicity of uses including convenience and
specialty retail, services, entertainment, recreational, cultural,
office, institutional and multi- family residential and including ,
public parking to adequately serve new developments;
3. A linear open space system within the business park and
including parks on Lake Susan and in downtown Chanhassen;
4. The relocation of T.H. 101 to intersect with T.H. 5 at Dakota
Avenue and remove traffic from the downtown area by routing it ,
directly to T. H. 5 and new Market Boulevard;
5. The extension of Lake Drive from County Road 17 to T. H. 101 to
accommodate local traffic demands; '
6. The realignment of West 78th Street at County Road 17 to provide
adequate stacking distance between West 78th Street and T. H. I
5;
7.
The widening of County Road 17 from Lake Drive to the northerly
line of the tax increment financing district and the creation of an
'
urban section in this Project Area;
8.
The construction or reconstruction of public utilities within the
'
downtown redevelopment area to accommodate new development
including the acquisition and construction of a major ponding
area with over a million cubic feet of storage to serve all of the
downtown area;
'
9.
The construction of Market Boulevard from West 78th Street to
the southerly line of the tax increment financing district;
'
10.
The construction of Lake Drive from Audubon to existing T. H.
101 and the upgrading of Audubon within the tax increment
'
financing district; and
11.
Redevelopment of the area north of T. H. 5 extending from Great
Plains Boulevard easterly to realigned T.H. 101;
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I 12. The development of a new park and the expansion of an existing
park;
' 13. Heritage preservation enhancements;
14. The meeting of public facility needs; and
' 15. Aesthetic improvements to Highway 5 to enhance the downtown
area's image and identity.
' F. PROJECT AREA FINANCING
' The HRA has undertaken and intends to continue to develop plans for
public improvements and to make land available for redevelopment by private
parties within the Project Area. Previous Redevelopment Plans have contained
descriptions of new projects. New proposals proposed by the HRA at this time
' are detailed in Subsection G of the accompanying modified Tax Increment
Financing Plan. The HRA intends to finance both public improvements and
redevelopment activities through a combination of special assessments and tax
' increment financing. Special assessments levied within the Project Area may
be eligible for reimbursement through the HRA's Special Assessment
Reduction Program which is described in more detail in Subsection P of the
accompanying Tax Increment Financing Plan. Tax increment paid to the HRA
' is pledged through a written agreement with the City for repayment of bonds
issued by the City to pay for public costs in the Project Area.
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II.
TAX INCREMENT FINANCING PLAN
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A. STATUTORY AUTHORITY.
Pursuant to the HRA Act, the City on December 19, 1977 created the
Project in the downtown portion of Chanhassen north of Highway 5 and
established the area as a tax increment financing district. On December 18,
1978, the Project was expanded to include an additional 450 acres south of
Highway 5 and that area was also included as part of the TIF District. At the
time of the creation of the Project, the Redevelopment Plan was adopted by the
HRA and the City. The Redevelopment Plan contained details of the Project,
and included a brief discussion regarding the use of TIF. This constituted
the "statement of the method proposed for financing" the Project required at
that time by the HRA Act. The Project has also been expanded since 1978 and
is being enlarged by the adoption of a modified Redevelopment Plan concurrent
with the modified TIF Plan. This modification does not involve an enlargement
of the TIF district.
Due to changed circumstances and new development opportunities, the HRA
and City have chosen from time to time to amend the TIF Plan. The HRA and
the City now wish to adopt another modified TIF Plan which accurately reflects
the current financial plan for the Project, with particular emphasis on
downtown Chanhassen. This constitutes the thirteenth modified TIF Plan.
However, adoption of this modified TIF Plan does not constitute an election on
the part of the City or HRA to proceed with the Project under the TIF Act,
except to the extent required by section 469.179. The HRA and City intend
to continue to administer the Project as a TIF District created and certified
prior to August 1, 1979, to the extent permitted by law.
B. STATEMENT OF OBJECTIVES
The HRA and City seek to achieve the following objectives through the
modified TIF Plan:
1. Provide employment opportunities within the City;
2. Improve the tax base of the City and the general economy of the
City and State;
3. Encourage redevelopment of the Project Area which is an area of
Chanhassen which has not been utilized to its full potential;
4. Implement relevant portions of the City's Comprehensive Plan;
5. Assist in the acquisition of certain properties for the purpose of
constructing needed public improvements and promoting
redevelopment; and
6. Implement a program of special assessment reductions for
properties within the Project Area whose market values have
increased due to new construction since the creation of the TIF
District.
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C. STATEMENT OF PUBLIC PURPOSE
In adopting the modified TIF Plan and administering the Project, the
'
HRA and City have made the following findings:
1. Redevelopment of the Project would not reasonably be expected
to occur solely through private investment within the reasonably
'
foreseeable future and, therefore, the use of TIF is deemed
necessary;
2. The Redevelopment and TIF Plans will afford maximum
'
opportunity, consistent with the sound needs of the City as a
whole, for development of the Project by private enterprise; and
3. The Redevelopment and TIF Plans conform to general plans for
the development of the City as a whole.
D. RELATION TO REDEVELOPMENT PLAN
The City authorized the Project on December 19, 1977, and modified its
boundaries on December 18, 1978. Additional land was included within the
'
Project Area in connection with the adoption of Modification No. 7 to the TIF
Plan in 1987 and with Modification No. 11, dated April 17, 1992. This
'
Modification No. 13 adds additional property to the Project Area and is
illustrated in Figure 1 attached hereto.
E. BOUNDARIES OF TIF DISTRICT
Boundaries of the TIF District area are shown on Figure 1 of
Modification No. 11. The TIF District includes property in both the downtown
and Chanhassen Lakes business park areas. Legal descriptions of the
boundaries of the TIF District were included as exhibits to Resolution
Nos. 77 -72 and 78 -73, adopted by City Council on December 19, 1977 and
' December 18, 1978, respectively. The boundary of the TIF District will not
be changed as a result of this Modification No. 13.
F. DESCRIPTION OF DOWNTOWN REDEVELOPMENT AREA
' The downtown redevelopment area is the portion of the Project
originally created by the City in 1977. It consists of approximately 175 of the
' Project's total of 2,200 acres. The downtown redevelopment area is located
north of Highway 5 and a majority of it is west of Highway 101 ( Great Plains
Boulevard) . The area contains the retail and commercial core of the City,
including the Chanhassen Dinner Theater. Although the infrastructure and
' public facilities have been improved significantly in recent years, the
downtown redevelopment area is still characterized by the underutilization of
land.
G. DEVELOPMENT AND OTHER AGREEMENTS
' The HRA has negotiated numerous agreements with developers in the
past seeking to develop land within the downtown redevelopment area. Many
of these projects have been outlined and discussed in previous modifications.
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In addition to those matters, the following projects are the subject of current '
or upcoming negotiation:
1. Target Store The HRA intends to purchase approximately 16 '
acres for development of a Target Store and the creation of
several outlots. The project will be located north of Highway 5
and south of West 78th Street. A portion of West 78th street will ,
be vacated to accommodate the project. Target will occupy a site
of slightly more than 10 acres.
2. Taco Shop /Apple Valley Redimix These properties on Highway '
5 will be redeveloped with more attractive and appropriate land
uses. Plans call for use of portions of these sites for highway -
related amenities, including a rest stop or open space. Other '
portions will be developed for highway- oriented commercial uses.
3. Conference Center/ Recreational Center The HRA intends to
acquire property north of the Soo Line railroad in the vicinity of
the Chanhassen Dinner Theater, including the FMG Warehouse,
Chanhassen Bowling Center and Frontier Building. Plans call for
development of a multipurpose conference center/ recreation '
center /bowling facility. Retail uses, including a cinema or
restaurant, and a library may also be included.
H. HISTORY AND CLASSIFICATION OF TIF DISTRICT '
The TIF District was established by the HRA and City in late 1977 and
contained approximately 175 acres centered on what is now known as the '
downtown redevelopment area. The TIF District was expanded the following
year with the inclusion of approximately 455 acres in the area south of
Highway 5 known as the Chanhassen Lakes business park. For purposes of
classification, the TIF District is a pre -1979 TIF District and the HRA and
City intend to retain that designation except as required by section 469.179
of the TIF Act.
I. MODIFICATION OF TIF PLAN
This modification marks the thirteenth formal modification of the TIF ,
Plan. The TIF Plan may be modified again in the future by the HRA and City
as changing conditions warrant.
J. USE OF TAX INCREMENT '
All revenues derived from the TIF District shall be used in accordance ,
with the current modified TIF Plan. The revenues shall be used to finance or
otherwise pay the capital and administrative costs of development activities
within the Project Area as identified in the TIF Plan. Tax increment paid to
the HRA is pledged through a written agreement with the City for repayment '
of bonds issued by the City to pay for public costs in the Project Area.
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1 K. EXCESS TAX INCREMENT
In any year in which the increment exceeds the amount necessary to pay
' the costs authorized by the TIF Plan, the HRA shall use the excess amount to
do any of the following, in the order determined by the HRA:
' 1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment therefore;
' 3. Pay into an escrow account to the county auditor who shall
distribute the excess amount to the City, the County and the
school district in direct proportion to their respective tax
capacity rates or in accordance with any agreement between the
County and the City or the HRA.
In addition, the HRA and City may choose to modify the TIF Plan again
in order to provide for public improvements or other development costs within
the Project.
L. DURATION AND MODIFICATION OF THE TIF DISTRICT
The geographic area of the TIF District may be reduced but it cannot
be enlarged after August 1, 1984. As a TIF District established prior to
August 1, 1979, the TIF District will expire on August 1, 2009, except as the
provisions of section 469.176, subdivision 1(e) of the TIF Act may require
otherwise.
M. RELOCATION
The HRA accepts as binding its obligations under Minnesota Statutes
sections 117.50 through 117.56 for relocation and will administer relocation
services for families, individuals and businesses displaced by public action.
' N. PROPERTIES TO BE ACQUIRED WITHIN THE PROJECT AREA
Figure 3 of Modification No. 11 showed all properties which had been or
' were proposed to be acquired within the Project Area as a result of actions
described or authorized by the then- current TIF Plan. Several additional
parcels are scheduled for acquisition as a result of this Modification No. 13,
' including the following:
1. Part of Lot 3, Block 2, Frontier Development Park. This
' property is located west of the Chanhassen Inn between W. 79th
Street and T. H. 5. It is being acquired because it has been
designated as wetlands.
2. Right -of -way for Co. Rd. 17 from West 78th Street to Lyman
Blvd.
'
3. Right -of -way for Lyman Blvd. from T. H. 101 to Audubon Road.
4. Land necessary to accommodate pedestrian bridge over T.H. 5
and related trails.
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5 . Willie Kline property /right -of -way for future T.H. 101
alignment.
Acquisition for projects 2 and 3 above are being pursued in accordance with
the Chanhassen /Chaska /Carver County road funding project, whereby
'
Chanhassen and Chaska have agreed to assist Carver County in funding
certain road improvements. The designated improvements are one which have
been identified in the Eastern Carver County Transportation Study as having
,
high priority, but which Carver County is unable to afford solely on its
resources within the reasonably foreseeable future. The HRA and city have
agreed to fund a portion of these county road costs within the next five years
,
and will be reimbursed for such expenses by Carver County during the period
2001 through 2003 and thereafter if permitted by law. The properties
identified above for acquisition are shown on Figure 2.
O. PUBLIC IMPROVEMENTS PLANS
Substantial public improvements have been undertaken during the last
'
several years within the Project Area. Additional improvements are
contemplated at the present time or in the near future, including the road
improvements discussed above. All public improvements, including those
'
contemplated by the Chanhassen /Chaska /Carver County road funding
agreement, will be constructed in accordance with all requirements of law.
P. ESTIMATE OF PROJECT COSTS
'
Since the downtown redevelopment area is within an existing TIF
District, increment is currently being generated and administered by the
'
HRA. Increment generated by the TIF District has been collected by the HRA
since shortly after the creation and expansion of the TIF District and Project
in the late 1970s. Funds generated through tax increment have been used for
a variety of purposes, including land acquisition, relocation and public
improvements. The HRA commits itself to expend the portion of the increment
generated by the TIF District which is necessary to pay the outlined costs.
'
The HRA has participated a special assessment reduction program for
properties throughout the Project. Under the modified program in effect as
of the adoption of this Modification No. 13, benefitted properties are eligible
'
for reductions in assessments if there has been an increase in the assessed
value of the properties due to new construction. The amount of the reduction
for which a property owner is eligible is equal to one -half the tax increment
from the parcel (as determined by the auditor and adjusted for fiscal
'
disparities contributions) for the period commencing with the year in which
the HRA receives the first full year's increment through the year 2000.
However, the maximum reduction may not exceed the total special assessments
'
levied and outstanding against the parcel for qualifying public improvement
projects. Owners wishing to participate must enter into a special assessment
reduction agreement with the HRA.
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Under current state law, the HRA's activities within the Project Area
will be substantially curtailed beginning on April 1, 2001. The HRA intends
to seek adjustment of those restrictions from the Minnesota legislature and will
seek the support of Carver County and I. S.D. No . 112 in its efforts to secure
' special legislation for this purpose. If the HRA is successful in these efforts,
the HRA will initiate a discussion with the county and school district
regarding sharing increment during the period following April 1, 2001.
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'
In addition to project costs outlined in previous modifications, the
following are costs anticipated for upcoming projects:
'
Land Acquisition
Part of Lot 3, Block 2,
Frontier Development Park $ 35,000
Pedestrian bridge pads and
related trails 57,000
Willie Kline property /right -of
way for future T. H. 101 alignment 120,000
'
Public Improvements
'
Reconstruction of Co. Rd. 17
from West 78th Street to Lyman Blvd. 4,450,000
Reconstruction of Lyman Blvd.
'
from T. H. 101 to Audubon Road 2,000,000
Construction of Pedestrian Bridge 450,000
'
Highway entry monuments and landscaping
at intersections of T.H. 5 and Co. Rd.
17, Market Blvd., Dakota, and Great Plains 500,000
Administration 750,000
TOTAL $8,362,000
As detailed elsewhere in this Modifications No. 13, the HRA is committed to
'
certain expenditures which will be of mutual benefit to the HRA, Carver
County and I. S. D. No. 112. The HRA intends to expend $6,500, 000 on county
highway projects within the Project Area. The City has entered into an
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agreement with Carver County regarding these expenditures and
reimbursement for same by Carver County out of excess tax increment during
the years 2001 through 2003, or later, as permitted by law. The City will
continue to evaluate its overall financial commitment so as to allow "excess levy
distributions" to the school district as authorized by state law.
Under current state law, the HRA's activities within the Project Area
will be substantially curtailed beginning on April 1, 2001. The HRA intends
to seek adjustment of those restrictions from the Minnesota legislature and will
seek the support of Carver County and I. S.D. No . 112 in its efforts to secure
' special legislation for this purpose. If the HRA is successful in these efforts,
the HRA will initiate a discussion with the county and school district
regarding sharing increment during the period following April 1, 2001.
I
REB65365
CH130 -5
11
Q. ORIGINAL TAX CAPACITY I
The Tax Increment Financing District has been highly successful in
meeting the goals and objectives outlined in this Plan. With the completion of ,
all projects currently anticipated, over three million square feet of commercial
and industrial space will have been constructed. The current total tax
capacity of the Tax Increment District is $3,579,891 with a base tax capacity '
of $150,972.
R. ESTIMATE OF CAPTURED TAX CAPACITY AND TAX INCREMENT.
The HRA's estimate of captured tax capacity of the TIF district has
been outlined in previous modifications, most recently in Modification No. 12
adopted December 14, 1992. None of the new projects or expenditures ,
outlined in this modification will increase the estimated captured tax capacity
of the TIF district.
S. ESTIMATE OF IMPACT ON OTHER TAXING JURISDICTIONS. '
The HRA's estimates of the fiscal impact of various new improvements
within the TIF district have been outlined in each previous modification as ,
appropriate, including new projects discussed in Modification No. 12 adopted
on December 14, 1992. Since this modification does not relate to any new
private, taxable projects, there is no change in the HRA's estimate of the '
fiscal impact of the TIF district on taxing jurisdictions.
T. ANNUAL REPORT REGARDING TIF
'
Pursuant to section 469.175, subd. 6a of the TIF Act, the HRA must
report annually by March 1 to the Minnesota commissioner of revenue the
following amounts for the entire municipality:
1. the total principal amount of nondefeased tax increment financing
bonds that are outstanding at the end of the previous calendar
year; and
'
2. the total annual amount of principal and interest payments that
are due for the current calendar year on (i) general obligation
'
tax increment financing bonds, and (ii) other tax increment
financing bonds.
'
The HRA must also annually report to the commissioner of revenue the
following amounts for the TIF district.
1. the type of district, whether economic development,
r
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;
RM65365
CH130 -5 12
4. the tax increment revenues for taxes payable in the current
calendar year;
5. whether the tax increment plan or other governing document
permits increment revenues to be expended (i) to pay bonds, the
proceeds of which were or may be expended on activities located
outside of the district, (ii) for deposit into a common fund from
which money may be expended on activities located outside of the
district, or (iii) to otherwise finance activities located outside of
the tax increment district; and
6. any additional information that the commissioner of revenue may
require.
EM65365
CE130 -5 13
HANUS BUILDING IMPROVEMENTS
PROPOSED IMPROVEMENTS
1. Site Costs (Bid)
a. Parking Lot, Landscaping and Irrigation $159,820.00
b. Dumpster Screening 1,300.00
Subtotal Site $161,120.00
C. HRA benefit for pedestrian bridge/
landscaping on HRA property (- 58,500.00)
Total Site Improvements $102,620.00
2. Building Costs (Estimates)
a. Paint Exterior
$13,000.00
b. Metal Canopies
7,500.00
C. Metal Roof /Structure
71,000.00
d. Signage
15,000.00
Total Bt.ildina Improvements
$106,500.00
SCHEDULE
1. Site
May 15 to July 29
2. Building:
a. Bids
April
b. Construction
May /June
Attachment #2
I
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Hoisington Koegler Group Inc.
7300 metro Blvd. • Suite 525
Minneapolis, MN 55439 • (612)835.9960
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PLAN
CHANHASSEN. MINNESOTA
LEGEND
Tax Increment District
Existing Project Area
Proposed Project Area
,I , / .,
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....... . .
X*
......................
ry r
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e
....
.........
auu
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I
Hoisington Koegler Group Inc.
7300 metro Blvd. • Suite 525
Minneapolis, MN 55439 • (612)835.9960
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PLAN
CHANHASSEN. MINNESOTA
LEGEND
Tax Increment District
Existing Project Area
Proposed Project Area
,I , / .,
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....... . .
X*
......................
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......
21.
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Hoisington Koegler Group Inc.
7300 metro Blvd. • Suite 525
Minneapolis, MN 55439 • (612)835.9960
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PLAN
CHANHASSEN. MINNESOTA
LEGEND
Tax Increment District
Existing Project Area
Proposed Project Area
,I , / .,
r
....... . .
X*
ry r
e
..a
'N
auu
I
I
Hoisington Koegler Group Inc.
7300 metro Blvd. • Suite 525
Minneapolis, MN 55439 • (612)835.9960
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PLAN
CHANHASSEN. MINNESOTA
LEGEND
Tax Increment District
Existing Project Area
Proposed Project Area
,I , / .,
r
....... . .
X*
auu
I
I
Hoisington Koegler Group Inc.
7300 metro Blvd. • Suite 525
Minneapolis, MN 55439 • (612)835.9960
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PLAN
CHANHASSEN. MINNESOTA
LEGEND
Tax Increment District
Existing Project Area
Proposed Project Area
,I , / .,
I �
III
FIGURE 2
PROPERTY
ACQUISITION
i
LEGEND:
® PUBLIC IMPROVEMENT
REDEVELOPMENT
• —•— PROJECT AREA BOUNDARY
- - -- TAX INCREMENT DISTRICT
>=t vrl CHANHASSEN
C 2w . or NO' N DOWNTOWN
SCALE REDEVELOPMENT
PLAN
Hoisington Group Inc
CHANHASSEN, MINNESOTA
FEBRUARYIW
' Dr. Dave Clough
Superintendent
Independent School District No. 112
1700 Chestnut Street
' Chaska, MN 55318
RE: Modification No. 13, City of Chanhassen Redevelopment Plan and TIF Plan
' (Downtown Chanhassen Redevelopment Area)
Dear Superintendent:
' This is to notify I. S.D. No . 112 that the City of Chanhassen will conduct a public
hearing on Modification No. 13 of the Redevelopment Plan and TIF Plan for the
captioned Project at a city council meeting on Monday, March 14, 1994, at 7:30 p.m.
in the city hall. A representative of the school district is invited to attend the
meeting or you may send written comments to Mr. Don Ashworth, Chanhassen City
Manager.
Enclosed is a draft copy of modification No. 13 of the Redevelopment Plan and TIF
Plan. If you have any questions regarding the Plans, please feel free to call me at
337 -9262 or Mr. Ashworth at 937 -1900.
Sincerely,
i G�
onald H . Batty
Special County to the
City of Chanhassen
RHB : ckr
C -5
CH130 -5
HOLMES & GRAVEN
CHARTERED
Attorneys at Law
'
470 Pillsbury C4nter, MinneBpolfs, Minnesota 55402
ROBERT A. ALSOP
(612) 337 -9300
ROBERT C. LONG
RONALD H. BATTY
LAURA K. MOLLET
STEPHEN J. BUBUL
Facsimile (612) 337.9310
BARBARA L P ORTWOOD
'
JOHN B. DEAN
JAMES M. STROMMEN
MARY DOBBINS
JAMES J. THOMSON, JR.
STEFANIE N. GALEY
LARRY M. WERTHEIM
CORRINE A. HEINE.
BONNIE L WILKINS
JAMES S. HOLMES
WRITER'S DIRECT DIAL
GARY P. WINTER
DAVID J. KENNEDY
_
JOHN R. LARSON
337 -9262
DAVID L GRAVEN (1929.1991)
_
WELLINGTON H. LAw
OF COUNSEL
CHARLES L. LEFEVERE
ROBERT C. CARLSON
'
JOHN M. LEFEVRE, JR.
ROBERT L DAVIDSON
ROBERT J. LINDALL
T. JAY S ALMEN
February 10, 1994
' Dr. Dave Clough
Superintendent
Independent School District No. 112
1700 Chestnut Street
' Chaska, MN 55318
RE: Modification No. 13, City of Chanhassen Redevelopment Plan and TIF Plan
' (Downtown Chanhassen Redevelopment Area)
Dear Superintendent:
' This is to notify I. S.D. No . 112 that the City of Chanhassen will conduct a public
hearing on Modification No. 13 of the Redevelopment Plan and TIF Plan for the
captioned Project at a city council meeting on Monday, March 14, 1994, at 7:30 p.m.
in the city hall. A representative of the school district is invited to attend the
meeting or you may send written comments to Mr. Don Ashworth, Chanhassen City
Manager.
Enclosed is a draft copy of modification No. 13 of the Redevelopment Plan and TIF
Plan. If you have any questions regarding the Plans, please feel free to call me at
337 -9262 or Mr. Ashworth at 937 -1900.
Sincerely,
i G�
onald H . Batty
Special County to the
City of Chanhassen
RHB : ckr
C -5
CH130 -5
Mr. Dick Stolz
County Administrator
'
Carver County Courthouse
600 East Fourth Street
HOLMES & GRAVEN
Chaska, MN 55318
'
RE: Modification No. 13, City of Chanhassen Redevelopment Plan and TIF Plan
CHARTERED
(Downtown Chanhassen Redevelopment Area)
'
Attorneys at Law
This is to notify Carver County that the City of Chanhassen will conduct a public
'
hearing on Modification No. 13 of the Redevelopment Plan and TIF Plan for the
470 Pillsbury Center, Minneapolis, Minnesota 55402
captioned Project at a city council meeting on Monday, March 14, 1994, at 7:30 p.m.
ROBERT A. ALSOP
(612) 337 -9300
ROBERT C. LONG
RONALD H. BATTY
LAURA K. MOLLET
'
STEPHEN J. BUBUL
Facsimile (612) 337 -9310
BARBARA L PORTWOOD
'
JOHN B. DEAN
JAMES M. STROMMEN
'
MARY G. DOBBINS
JAMES J. THOMSON, JR.
STEFANIE N. GALEY
LARRY M. WERTHEIM
CORRINE A. HEINE
BONNIE L WILKINS
JAMES S. HOLMES
WRITER'S DIRECT DIAL
GARY P. WINTER
'
DAVID J. KENNEDY
DAVID L. CRAVEN (1929 -1991)
JOHN R. [ARSON
337 -9262
-
WELLINGTON H. LAW
OF COUNSEL
CHARLES L. LEFEVERE
ROBERT C. CARLSON
JOHN M. LEFEVRE, JR.
ROBERT L DAVIDSON
'
ROBERT J. LINDALL
T. JAY SALMEN
February 10, 1994
Mr. Dick Stolz
County Administrator
'
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
'
RE: Modification No. 13, City of Chanhassen Redevelopment Plan and TIF Plan
(Downtown Chanhassen Redevelopment Area)
'
Dear Mr. Stolz:
This is to notify Carver County that the City of Chanhassen will conduct a public
'
hearing on Modification No. 13 of the Redevelopment Plan and TIF Plan for the
captioned Project at a city council meeting on Monday, March 14, 1994, at 7:30 p.m.
in the city hall. A representative of the county is invited to attend the meeting or
'
you may send written comments to Mr. Don Ashworth, Chanhassen City Manager.
Enclosed is a draft copy of modification No. 13 of the Redevelopment Plan and TIF
Plan. If you have any questions regarding the Plans, please feel free to call me at
'
337 -9262 or Mr. Ashworth at 937 -1900.
Sincerely,
'
Ronald H. Batty
Special County to the
'
City of Chanhassen
RHB : ckr
RHB45018
CH130 -5 '
I CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
I RESOLUTION
I Date Resolution No.
I Motion By Seconded By
' RESOLUTION APPROVING MODIFICATION NO. 13 TO
THE REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN
FOR THE CHANHASSEN DOWNTOWN REDEVELOPMENT PROJECT
' BE IT RESOLVED By the City Council of the City of Chanhassen, Minnesota
as follows:
' Section 1. Recitals
1.01. The Housing and Redevelopment Authority in and for the City of
' Chanhassen (Authority) and the City Council of the City of Chanhassen (City)
approved a redevelopment project for the downtown Chanhassen area (Project) and
adopted a redevelopment plan and tax increment financing plan (Plan) for same on
November 29, 1977, and December 19, 1977, respectively.
' 1.02. Due to changes in the focus of the Plan and alterations in the
boundaries of the Project, the Plan has been the subject of twelve modifications since
' its adoption in 1977.
. 1.03. Changes and additions to the public and private improvements to be
' constructed in the Project have prompted the need for another modification to the
Plan.
1.04. In response to these changes, the Authority has authorized the
' preparation of a modified Plan, which is contained in a document entitled
Redevelopment Plan and Tax Increment Financing Plan for Downtown Chanhassen
Redevelopment Area, Housing and Redevelopment Authority in and for the City of
Chanhassen, Modification No. 13," dated March 14, 1994, and now on file with the
Authority.
1.05. The Authority on February 24, 1994, approved the modified Plan for the
Project and referred it to the Council for public hearing.
1.06. In accordance with Minnesota Statutes sections 469.174 through
' 469.179 (TIF Act), the modified Plan was referred to the Chanhassen planning
commission which on March 2, 1994, found that it conforms to and is not in conflict
with the general plan for redevelopment of Chanhassen as a whole.
1.07. Copies of the modified Plan have been forwarded to Independent School
District No. 112 and Carver County along with a notice of a public hearing to be held
by the City on March 14, 1994, as required by the TIF Act.
RHB30634
CH130 -5
1. 08. The City has fully reviewed the contents of the modified Plan and has '
this date conducted a public hearing thereon at which the views of all interested
persons were heard.
Section 2. Findings; Redevelopment Project
2.01. It is hereby found and determined that within the Project there exist '
conditions of economic obsolescence, physical deterioration, underutilization and
inappropriate uses of land.
2.02. It is further specifically found and determined that: '
a. the land in the Project would not be made available for
redevelopment without the public intervention and financial '
assistance described in the modified Plans;
b. the modified Redevelopment Plan for the Project will afford
maximum opportunity, consistent with the sound needs of
Chanhassen as a whole, for the redevelopment of the Project by
private enterprise;
C. the modified Redevelopment Plan conforms to the general
development plan of Chanhassen as set forth in the
comprehensive municipal plan.
2.03. The findings in this section are made in compliance with section
469.028, subdivision 2 of the Housing and Redevelopment Authorities Act (Act) for
the purpose of showing the City's intent to exercise, in conjunction with the
Authority, the powers granted to the City and the Authority by the Act.
Section 3. Findings; Tax Increment Financing District
3.01. It is found and determined that it is necessary and desirable to the
sound and orderly development and redevelopment of the Project and Chanhassen as
a whole, and for the protection and preservation of the public health, safety, and
general welfare, that the authority of the TIF Act be exercised by the Authority and
the City to provide public financial assistance within the Project.
3.02. It is further found and determined, and it is the reasoned opinion of the
Authority and the City, that the redevelopment proposed in the modified Plan could
not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that therefore the use of tax increment financing
is necessary.
3.03. The modified Plan conforms to the general plan for redevelopment of
Chanhassen as a whole.
3.04. The proposed public improvements to be financed largely through tax
increment financing are necessary to permit the Authority and the City to realize the
full potential of the Project in terms of development intensity, employment
opportunities and tax base.
RHB30634
CH130 -5
7
3.05. The modified Plan will afford maximum opportunity, consistent with the
sound needs of Chanhassen as a whole, for the redevelopment of the Project by
private enterprise.
' 3.06. Nothing contained herein constitutes an election on the part of the
Authority or City to proceed with the Project under sections 469.174 through 469.178
' of the TIF Act, except to the extent required by section 469.179.
Section 4. Adoption of Modification No. 13; Filing
' 4.01. The modified Plan is hereby approved and adopted. The modified Plan
incorporates by reference the original Plan and all subsequent amendments thereto,
except as the modified Plan explicitly or by reasonably necessary implication
' conflicts with the original Plan or any of the first twelve amendments thereto.
4.02. The geographic boundaries of the Project area have been expanded by
' this modification and are now as described in the modified Plan. The modified Plan
has not changed the boundaries of the TIF district.
4.03. The Authority is requested to file a copy of the modified Plan with the
' Minnesota department of revenue.
4.04. The City may at the appropriate time take action to issue and sell its
' general obligation bonds pursuant to the TIF Act to finance public redevelopment
costs identified in the modified Plan.
' 4.05. The city clerk is authorized and directed to transmit a certified copy
of this resolution to the Authority.
DATED: 1994
Donald Chmiel, Mayor
' ATTEST:
I Donald Ashworth, City Clerk/Manager
YES NO ABSENT
PM30634
c11130 -5 3
r
I March 14, 1994
' Dear City Council Members:
Thank you for responding to the issues regarding the Jessup
' property. We appreciate your decision to take action to
resolve this long standing problem.
' As Mr. Jessup has chosen to fill in the hole on his
property, it is obvious that he is not to building
and no more extensions of the variance are needed. in
addition to not extending the variance, we would like you to
address the following points:
1. Grade the property to the "pre- construction" condition
' to eliminate the drainage problems. This grading
should be done under the supervision and to the
satisfaction of the City Engineer. Currently the
filled property is bermed higher than it was before
excavation began. The bituminous curb on the street
side of the property should also be removed.
2. Clean up the property removing all trash, broken
building blocks, and other items currently stored on
the property. This was to be done last fall by order
of Chanhassen Public Safety, documented in a letter to
Mr. Jessup dated Sept. 20, 1993.
3. Ensure the erosion control fence is completely
surrounding the property and securely in place until
such time that he can seed or sod the entire property
to prevent environmental damage to the lake.
4. Set a deadline for these items to be completed.
I Again, we thank you for your time, respect and consideration
' Sincerely,
Don an Kitty Sitter
9249 Lake Riley Blvd.
Cl-