3. Modification of Tax Increment Financing District No. 2-1MEMORANDUM
CITY OF 3
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth, City Manager
FROM: Todd Gerhardt, Assistant City Manager
DATE: September 14, 1994
SUBJ: Public Hearing on the Modification of Tax Increment Financing District 2 -1
In accordance with state law, the city council
modifications to a tax increment financing di;
city council adopted a resolution establishing
receive citizen comments.
i a public hearing when considering
their September 12, 1994 meeting, the
,r 26, 1994 as the public hearing to
Attached for the city council's consideration is the prolapsed modification of the plan for Tax
Increment Financing District No. 2 -1 asFrepared by Rod% Batty of Holmes and Graven Law
Firm (see Attachment #1). Staff has alto notified both (rver County and School District
112 (see Attachment #2). Staff hast received any objections to the modification of the
district.
The Planning Com
consistent with the
You should also ��var
bonding attorney i4wes
. ;.
are moving ahead and the
October 11, 1994 meeting
reviewed the proposed
Plan.
city to document that the frontage load
�iw,selling bonds to pay for them. The
Roadway improvements $1,000,000
(Frontage Road Phase I end at
school/city property line)
Recreational Facilities $2,300,000
Total $3,300,000
and found it to be
�uncil is that our
onal center
Gicil at their
the following:
' Don Ashworth
September 14, 1994
Page 2
This plan modification calls for including the second phase of the frontage road that will be
assessed to benefiting property owners along the roadway at an estimated cost of $2 million
' and an additional $20,000 for administrative expenses. The amendment to the plan also
authorizes the sale of bonds in the aggregate amount of $5,300,000 for the recreational center
and frontage road. The proposed fall and spring bonding costs are as follows:
Fall, 1994 Costs
' Frontage Road $1,000,000
(In front of the new elementary
and recreational center)
Recreational Center $1,182,000
Estimated Bonding Costs 58,000
$2,240,000
Spring, 1995 Estimated Costs
Phase II Frontage Road $1,942,000
(To be assessed against
benefiting property owner)
Recreational Center $1,118,000
Total $3,060,000
RECOMMENDATION
Staff would recommend that the City Council adopt the attached resolution (Attachment #4)
approving the modifications to Development District No. 2 and TIF District No. 2 and TIF
District No. 2 -1.
ATTACHMENTS
' 1. Location map.
2. Modified plan for District No. 2 -1.
3. Letters to ISD #112 and Carver County.
4. Resolution.
FIGURE 1
4/j�/ 1 1
SCHOOL SITE
J
0
(n
FIDURE 1
DEVELOPMENT
DISTRICT NO.2
Development District No. 2
T.I.F. District No. 2 -1
�■■�■ T.I.F. District No. 2 -2
No. 2
LIFT STATION
No. 2 -1
r- PARK
/SITE
No. 2 -2
mmmmm mm
El
0 1000' 2000' 3000'
MODIFIED TAX INCREMENT FINANCING PLAN,
TAX INCREMENT FINANCING DISTRICT NO. 2 -1
CITY OF CHANHASSEN, MINNESOTA
September 26, 1994
Prepared By:
HOLMES & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, MN 55402
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' -ter �,,.•� 1
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ITABLE OF CONTENTS
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MODIFIED
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
'
FINANCING DISTRICT NO. 2 -1 . •
A.
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B .
Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . .
'
C.
Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . .
D.
Statement of Public Purpose . . . . . . . . . . . . . . . . . . . . . .
E.
Development District Program . . . . . . . . . . . . . . . . . . . . .
F.
Description of TIF District. . . . . . . . . . . .
G.
Development District Contracts .
H.
Classification of TIF District. . . . . . . . . . . . . . . . . . . . .
I.
Modification of TIF Plan. . . . . . . . . . . . . .
'
J.
Use of Tax Increment. •
K.
Excess Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . .
'
L.
M.
Limitation of Increment . . . . . . . . . . . . . .
Limitation on Administrative Expenses.
N.
Limitation on Boundary Changes . . . . . . . . . . . . . . . . . . .
O.
Relocation. . . . . . . . . . . . . . . . . . . .
'
P.
Parcels to be Acquired Within the District:
Q.
•TIF
TIF Account.
R.
Estimate of Project Costs . . . . . . . . . . . . . . . . . . . . . .
S.
Estimate of Bonded Indebtedness . . . . . . . . . . . . . . . . . . .
T.
Original Tax Capacity. . . . . . . . . . . . . . . . . . . . . . .
U.
Estimate of Captured Tax Capacity . . . . . . . . . . . . . . . . . .
V.
Duration of the TIF District. . . . . . . . . . . . . .
W.
Estimates of Impact on Other Taxing Jurisdiction.
X.
Annual Financial Report . .
Y.
Assessment Agreements . . . . . . . . . . . . . . . . . . . . . . . .
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MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 2-1
'
A. Definitions.
For the purposes of the modified Tax Increment Financing Plan, the following
terms shall have the meanings specified below, unless the context otherwise
'requires.
"Administrative Expenses" means all expenditures of the City other than
amounts paid for the purchase of land or amounts paid to contractors or others
providing materials and services, including architectural and engineering services,
directly connected with the physical development of real property in the District,
' relocation benefits paid to or services provided for persons residing or businesses
located in the District, or amounts used to pay interest on, fund a reserve for, or
sell at a discount bonds issued pursuant to Section 469.178 of the TIF Act. Adminis-
trative expenses includes amounts paid for services provided by bond counsel,
' fiscal consultants and planning or economic development consultants.
"City" means the City of Chanhassen, a municipal corporation under the laws
' of the state of Minnesota;
City Council or Council " f 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 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;
"County" means Carver County, Minnesota;
' "Development District" means Development District No. 2 which was
established on October 10, 1988, pursuant to and in accordance with the Act, and
expanded on May 22, 1989, March 9, 1992, and October 11, 1993;
' "Development Program" or "Program" means the Development Program for
Development District No. 2, which adopted by the Council on October 10, 1988, and
' modified on May 22,1989; March 9, 1992, and October 11, 1993;
Project Area ' or Project ' means the property within modified Development
District No. 2, as described in the modified Development Program;
"State" means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax increment
bonds issued by the City to finance the public costs associated with Development
District No. 2 as stated in the Program and in the Plans for all Tax Increment
' Financing Districts within Development District No. 2 or any obligations issued to
refund the Tax Increment Bonds;
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"Tax Increment Financing District" means Tax Increment Financing District
No. 2 -1, established on October 10, 1988, pursuant to and in accordance with the
TIF Act and which was expanded on May 22, 1989;
' "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes,
sections 469.174 through 469.179, inclusive, as amended; and
"Tax Increment Financing Plan" or "Plan" means the TIF Plan for TIF District
No. 2 which was adopted by the Council on October 10, 1988, and which was modified
on May 22, 1989, October 22, 1990, March 9, 1992, and October 11, 1993 and which
Iis hereby being modified again.
B . Statutory Authority.
' Pursuant to section 469.175, subd. 4 of the TIF Act, the City has adopted the
Plan for TIF District No. 2 -1 and has established TIF District No. 2 -1 within
Development District No. 2. The City is hereby modifying the Plan for TIF District
' No. 2 -1 to provide authorization for additional public improvements and costs and
to authorize the sale of bonds to pay for the improvements. No additional land is
being included in TIF District No. 2 -1 as a result of this modification.
C. Statement of Objectives.
The City seeks to achieve the following objectives through the modified Plan
for TIF District No. 2 -1:
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 development in an area of the City which has not been
utilized to its full potential;
' 4. provide for roadway improvements;
5. provide for recreational facilities for residents of the community
' in coordination with other public entities in order to prevent
unnecessary duplication of facilities; and
6. implement relevant portions of the Comprehensive Plan.
D. Statement of Public Purpose.
' In adopting the modified Plan, the City Council intends to make the following
findings:
1. Anticipated development would not reasonably be expected to
occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of TIF is deemed
necessary;
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' 2. The modified TIF Plan will afford maximum opportunity, consis-
tent with the sound needs of the City as a whole, for development
of the District by private enterprise; and
' 3. The modified TIF Plan conforms to general plans for development
of the City as a whole.
' The conclusion summarized in paragraph 1 of this subdivision will be adopted
by the City upon approval of this modification and is one which has been reached by
the City Council following consultation with the planning commission and city staff.
The conclusion has also been reached based upon the personal knowledge of members
of the City Council regarding the property and development trends within the City.
E. Development District Program.
The City created Development District No. 2 at the same time as creation of
TIF District No. 2 -1. The Program was modified on May 22, 1989, March 9, 1992 and
October 11, 1993. This modification of the Plan for TIF District No. 2 -1 does not
include a modified Development District Program . The modified Plan is consistent
with the Program as last modified on October 11, 1993.
' F. Description of TIF District.
A description and a map of the boundaries of TIF District No. 2 -1 were
included with the modified Plan adopted on May 22, 1989. No additional property
is being added to TIF District No. 2 -1 as a result of this modification.
G . Development District Contracts.
The City will act in accordance with section 469.176, subd. 5 of the TIF Act
and no more than 10 percent, by acreage, of the land within TIF District No. 2 -1 will
be acquired by the City with bond proceeds without having concluded an agreement
for development or redevelopment of the property.
H. Classification of TIF District.
TIF District No. 2 -1 is an economic development TIF district, pursuant to
' section 469.174, subd. 12 of the TIF Act, for which certification was requested prior
to May 1, 1990. No property is being added to the TIF District as a result of this
modification.
' I. Modification of TIF Plan.
The Plan for TIF District No. 2 -1 is being modified at this time to authorize
additional expenditures for road improvements. Another purpose for this
modification is to authorize the City to sell bonds in the full amount of the authorized
expenditures. The Plan for TIF District No. 2 -1 may be modified again in the future
by the City, provided that any reduction or enlargement of 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 assessed value to be retained
by the City, increase in total estimated tax increment expenditures or designation
of additional property to be acquired by the City shall be approved upon the notice
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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. 2 -1 shall be used in accordance with this modified TIF Plan. The
revenues shall be used to finance or otherwise pay the capital and administrative
costs of development activities within the Development District as identified in the
modified Development Program and TIF Plan.
K. Excess Tax Increment.
Pursuant to section 469.176, subd. 2 of the TIF Act, in any year in which tax
increment exceeds the amount necessary to pay the costs authorized by the modified
TIF Plan, the City shall use the excess amount to do any of the following, in the
order determined by the City:
1. prepay any outstanding bonds;
2. discharge the pledge of tax increment therefor;
3. pay into an escrow account dedicated to the payment of bonds;
or
4. return the excess amount to the Carver 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.
' In addition, the City may choose to modify the TIF Plan again in order to
provide for other public improvements within the Development District.
L. Limitation of Increment.
1. No increment shall be paid to the City from TIF District No. 2 -1
after three years from the date of certification of the original tax
capacity of the taxable real property in the TIF District by the
county auditor unless within the three year period (a) bonds
have been issued pursuant to section 469.178 of the TIF Act, or
(b) the City has acquired property within TIF District No. 2 -1,
or (c) the City has constructed or caused to be constructed
public improvements within TIF District No. 2 -1. ,
2. If, after four years from the date of certification of the original
tax capacity of TIF District No. 2 -1, no demolition,
rehabilitation, or renovation of property or other site
preparation, including 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. 2 -1 by the
City, or by the owner of the parcel in accordance with the TIF
Plan, no additional increment may be taken from that parcel, and
the original tax capacity of that parcel shall be excluded from
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the original tax capacity of the TIF District. If these activities
subsequently commence, the City shall so certify to the county
auditor, and the tax capacity of the property as most recently
certified by the commissioner of revenue may be added to the
TIF District. The City shall submit to the county auditor
evidence that the required activity has taken place for each
parcel in -TIF District No. 2 -1. The evidence shall be submitted
by February 1 of the fifth year following the year in which the
parcels were certified as included within TIF District No. 2 -1.
3. No tax increment shall in any event be paid to the City from TIF
District No. 2 -1 after eight years from the date of receipt by the
City of the first increment or 10 years from the date of approval
of the original TIF Plan, whichever occurs first.
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. Each time the City
increases the budget of TIF District No. 2 -1, the amount of tax increment money
allocated to Administrative Expenses may be increased as long as the total of
Administrative Expenses does not exceed 10 percent of the total budget of the TIF
District.
rN. Limitation on Boundary Changes.
The geographic area of TIF District No. 2 -1 may be reduced, but cannot be
enlarged after five years following the date of certification of original tax capacity
by the Carver county auditor. This modification does not include an expansion of
the boundaries of TIF District No. 2 -1.
O. Relocation.
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Although no relocation is anticipated, the City accepts as binding its
obligations under state law for relocation and will administer relocation services for
families, individuals and businesses displaced by public action.
P. Parcels to be Acquired Within the TIF District.
It is not anticipated that any property within TIF District No. 2 -1 will be
acquired in connection with the development proposals outlined in this modified TIF
Plan. Funds will be used to acquire property for two parks and for community
recreational facilities to be constructed in connection with a new school site. The
parks and recreational facilities will be located within Development District No. 2 but
outside TIF District No. 2 -1.
Q. TIF Account.
The tax increment received with respect to TIF District No. 2 -1 shall be
segregated by the City in a special account on its official books and records and held
by a trustee for the benefit of holders of bonds issued to finance development
activities.
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R. Estimate of Project Costs.
The estimated budgeted amounts for the original TIF District were included
in the Plan adopted on October 10, 1988. Additional expenditures were authorized
by the TIF Plan modification approved on May 22, 1989, October 22, 1990 and March
9, 1992 and October 11, 1993.
The following are estimates of additional costs to be incurred as a result of this
fifth modification:
' Roads and related public improvements 2,000,000
Administration expenses 20,000
TOTAL $ 2,020,000
' The City has also initiated a special assessment reduction program for
properties throughout the TIF District. Under the program, 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. Properties assessed at a
rate of less than $30,000 per acre qualify for a reduction equal to seven percent of
the value added to the property through new construction. Properties assessed at
a rate of $30, 000 per acre or more qualify for a reduction equal to 12 percent of the
added value.
The amount of the reduction for which a property owner is eligible is equal to
the tax increment from the parcel (as determined by the auditor and adjusted for
fiscal disparities contributions) for a three year period following construction and
commencing with the year in which the City receives the first full year's increment,
or such other three year period as may be agreed upon by the City and owner.
' 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 City.
S. Estimate of Bonded Indebtedness.
The City has previously sold bonds to pay for the improvements to Audubon
Road and for land acquisition for recreational facilities. The City intends to sell
' additional tax increment bonds in an amount not to exceed $5,300,000 in 1994 and
1995 to pay for the improvements authorized by this and previous modifications.
T. Original Tax Capacity.
Pursuant to section 469.177, subd. 1 of the TIF Act, each year the Carver
county auditor will measure the increase or decrease in the total tax capacity of the
property. Any year in which there is an increase in total tax capacity of property
within the TIF District, an increment will be payable to the City. Any year in which
the total tax capacity is below the original tax capacity of all property within TIF
District No. 2 -1, no increment will be payable to the City.
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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. 2 -1 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;
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;
or
4. any change in tax classification under Minnesota Statutes,
section 273.13 of property after it has been added to the TIF
' District.
In addition, each year the auditor shall add to the original tax capacity of TIF
District No. 2 -1 an amount equal to the original tax capacity for the preceding year
multiplied by the average percentage increase in tax capacity of all property within
the TIF District during the preceding five years.
U. Estimate of Captured Tax Capacity.
The City's estimate of captured tax capacity within TIF District No. 2 -1 was
contained in the modified Plan adopted on May 22, 1989. Since this fifth modification
does not involve the addition of property to the TIF District, the City has not
revised its estimate of captured tax capacity.
' V . Duration of the TIF District.
In accordance with section 469.176, subd. 1 of the TIF Act, the City may
continue to receive TIF payments until eight years from the date of the receipt of the
first increment or 10 years from the date of the approval of the original TIF Plan,
whichever occurs first.
W. Estimates of Impact on Other Taxing Jurisdiction.
The City included its estimate of the impact of TIF District No. 2 -1 in the
' original Plan adopted on October 10, 1988, and the modified Plan adopted on May 22,
1989. Since this fifth modification does not involve adding any property to TIF
District No. 2 -1, the City has not changed its estimate of the fiscal impact of TIF
District No. 2 -1 on other taxing jurisdictions.
X. Annual Financial Report.
Pursuant to section 469.175, subd. 6 of the TIF Act, the City must file an
annual financial report regarding TIF District No. 2 -1. The report shall be filed by
July 1 of each year with the school board, the county board and the state auditor.
The report to be filed by the City shall include the following information:
1. the original tax capacity of TIF District No. 2 -1;
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2.
the captured tax capacity of TIF District No. 2 -1, including the
amount of any captured tax capacity shared with other taxing
districts;
3.
the outstanding principal amount of bonds issued or other loans
incurred to finance project costs in TIF District No. 2 -1;
'
4.
for the reporting period and for the duration of TIF District No.
2 -1, the amount budgeted under the TIF Plan and the actual
amount expended for the following categories:
a. acquisition of land and buildings through condemnation or
purchase;
b. site improvement or preparation costs;
1
C. installation of public utilities or other public
improvements;
d. administrative costs, including the allocated cost of the
'
City;
5.
for properties sold to developers, the total cost of the property
to the City and the price paid by the developer; and
6.
the amount of tax exempt obligations, other than those reported
under clause (3) , which were issued on behalf of private entities
for facilities located in TIF District No. 2 -1.
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In addition, the City must report annually by March 1 to the Minnesota
commissioner of revenue the following amounts for the entire City:
1. the total principal amount of nondefeased tax increment financing
bonds that are outstanding at the end of the previous calendar
year; and
2. the total annual amount of principal and interest payment that are
due for the current calendar year on (i) general obligation tax
increment financing bonds, and (ii) other tax increment
financing bonds.
The City must annually report to the commissioner of revenue the following
amounts for TIF District No. 2 -1:
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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;
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4. the tax increment revenues for taxes payable in the current
calendar year;
5. whether the 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
Irequire.
Y. Assessment Agreements.
Pursuant to section 469.177, subdivision 8 of the TIF Act, the City may, upon
entering into a development agreement pursuant to section 469.176, subdivision 5
of the TIF Act, execute an agreement in recordable form with the developer which
' establishes a minimum market value of the land and completed improvements for the
duration of TIF District No. 2 -1. The agreement shall be presented to the Carver
county assessor who shall review the plans and specifications for the improvements
to be constructed, review the market value previously assigned to the land upon
which the improvements are to be constructed and so long as the minimum market
value contained in the agreement appears in the judgment of the assessor to be a
reasonable estimate, the assessor may certify the minimum market value agreement.
1
' RD
CH130 -11 0 -11 9
SEP 14 '94 10:06 HOLMES & GRAVEN
i .
HOLMES & GRAVEN
CHARTERED
470 PjWWry Ceater, Minaapdte. MIADMIA 35402
(612)337.0300
Famiatlle (612) 337.9310
WRITER'S DIRECT DIAL
(613) 337-9363
Re: Fifth Modification of Tarr Increment Financing District No. 2.1
Dear Mr. Stolz:
P.2
Roam C. LONG
LAURA K. MOLLET
BARBARA L. AORTw000
JAMES M. SraoMMEN
JAMES J. THOMSON, JR.
LARRY M. WERTMIM
BONNIE L. WILKINS
GARY P. WINTER
DAVID L. GRAVEN (1939.19AI)
OP COUNSEL
ROBERT C. CARLSON
ROBERT L. DAVIDSON
T. JAY SALMSN
This is to notify Carver County that the City of Chanhassen will conduct a public hearing on the
captioned matter at the regular city council meeting on September 26, 1994, starting at 7:30 p.m.
in the Chanhassen city hall. The purpose of the modification is to authorize additional
expenditures for roadway improvements and recreational facilities and to authorize the sale of
bonds in the aggregate amount of all authorized expenditures. No land is being added to TIF
District No. 2 -1 as a result of this modification.
Enclosed is a draft copy of the modified 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 cal Mr. Ashworth at 937-
1904 or myself at 337 -9262.
Sincerely,
Ronald H. Ratty
RHR/lmb
Enclosures
cc: Todd Gerhardt
RH675163
CH130 -11
Attorne" at 1A'
ROBERT A. ALSO?
RONALD H. BATTY
STEPHLN J. BUBUL
JOHN B. DEAN
MARY G. DolMs
STEFANIE N. GALEY
CORRINE A. HEISE
JAMES S. HOLMES
DAVID J. KENNEDY
JOHN R. LARSON
WELLtNOTON H. LAW
CHARDS L. LEFEME
JOHN M. LBFEVRE, 3R.
ROBERT J. LINDALL
August 26, 1994
Mr. Dick Stolz
County Administrator
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
HOLMES & GRAVEN
CHARTERED
470 PjWWry Ceater, Minaapdte. MIADMIA 35402
(612)337.0300
Famiatlle (612) 337.9310
WRITER'S DIRECT DIAL
(613) 337-9363
Re: Fifth Modification of Tarr Increment Financing District No. 2.1
Dear Mr. Stolz:
P.2
Roam C. LONG
LAURA K. MOLLET
BARBARA L. AORTw000
JAMES M. SraoMMEN
JAMES J. THOMSON, JR.
LARRY M. WERTMIM
BONNIE L. WILKINS
GARY P. WINTER
DAVID L. GRAVEN (1939.19AI)
OP COUNSEL
ROBERT C. CARLSON
ROBERT L. DAVIDSON
T. JAY SALMSN
This is to notify Carver County that the City of Chanhassen will conduct a public hearing on the
captioned matter at the regular city council meeting on September 26, 1994, starting at 7:30 p.m.
in the Chanhassen city hall. The purpose of the modification is to authorize additional
expenditures for roadway improvements and recreational facilities and to authorize the sale of
bonds in the aggregate amount of all authorized expenditures. No land is being added to TIF
District No. 2 -1 as a result of this modification.
Enclosed is a draft copy of the modified 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 cal Mr. Ashworth at 937-
1904 or myself at 337 -9262.
Sincerely,
Ronald H. Ratty
RHR/lmb
Enclosures
cc: Todd Gerhardt
RH675163
CH130 -11
J
G
Attorney$ at Lrvr
ROBERT A. A1SOP
RONALD H. RATTY
8TEPMN J. RUBUL
JOIN B. DEAN
MARY G. DOMINS
STEFA -P419 N. GALEY
CORRINE A. HEINE
JAMES S. HOLMES
DAVID I KENNEDY
JOHN R LUWiON
WELLINGTON H. LAW
CHARL1s I1 L&FEVERe
JOWN M. LEFEVA1t,JR.
IiOSERT J. LINVALL
August 26, 1994
HOLMES & GRAVEN
470 Pillsbury Ctlltsr, Minnetpdit, lVtWp- tt $5402
(612)337 -9300
Superintendent David Clough
Chaska School District No. 112
110600 Village Road
Chaska, MN 55318
PSAWMMS (612) 337 -9310
vMTER'S DIRECT DIAL
(413) 337493
Re: Fifth Modification of Tax Increment Financing District No. 2 -1
Dear Superintendent Clough:
goBEAT C. LANG
!Auto IL MOLUT
SAASARA L.PORTWOOD
JAMES M. SrROMMEN
JAMES J. TROMSON, JR.
LARRY M. WP.AT1IXIM
BONNIE L. WILKINS
GARY P. WINTER
DANA L. GRAVEN (1929-1991)
OP couNSP1.
ROBERT C. CAIIJON
ROBERT L. DAVIDSON
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 September 26, 1994, starting at 7.30
p.m. in the Chanhassen city hall. The purpose of the modification is to authorize additional
expenditures for roadway improvements and recreational facilities and to authorize the sale of
bonds in the aggregate amount of all authorized expenditures. No land is being added to TIF
District No. 2 -1 as a result of this modification.
Enclosed is a draft copy of the modified 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,
1900 or myself at 337 -9262.
Sincerely,
A001
Ronald H. Batty
RHB/lmb
Enclosures
cc: Todd Gerhardt
RHB ?5:63
CF.130 -11
please feel free to call Mr. Ashworth at 937-
i
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date Resolution No.
Motion By Seconded By
' RESOLUTION ADOPTING A MODIFIED TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 2 -1
BE IT RESOLVED By the City Council (the Council) of the City of
Chanhassen, Minnesota (the City) as follows:
Section 1. Recitals.
1.01. On October 10, 1988, the City adopted a Development Program (the
"Program ") for Development District No. 2 and a Tax Increment Financing Plan (the
"Plan ") for Tax Increment Financing District No. 2 -1 therein, all pursuant to and
' in accordance with Minnesota Statutes, sections 469.124 through 469.134 and
Minnesota Statutes, sections 469.174 through 469.179.
' 1.02. The Program for Development District No. 2 was modified on May 22,
1989, March 9, 1992 and October 11, 1993.
1.03. The Plan for Tax Increment Financing District No. 2 -1 was modified on
' May 22, 1989, October 22, 1990, March 9, 1992 and October 11, 1993.
1.04. It has been proposed that the City again modify the Plan for Tax
Increment Financing District No. 2 -1 in order to authorize financing of additional
public expenditures within Development District No. 2.
1.05. The Council has investigated the facts and has caused to be prepared
a modified Plan for Tax Increment Financing District No. 2 -1, describing the
additional actions to be undertaken by the City to aid the development of property
within Development District No. 2.
1.06. The City has performed all actions required by law to be performed
prior to the modification of the Plan for Tax Increment Financing District No. 2 -1
including, but not limited to, notification of Carver County and Independent School
District No. 112; a review by the City planning commission of the modified Plan for
Tax Increment Financing District No. 2 -1 for its consistency with the general plans
for development of the City; and holding a public hearing regarding the modified
1 Plan upon such notice as is required by law.
1.07. The modified Plan is contained in a document entitled "Modified Tax
Increment Financing Plan, Tax Increment Financing District No. 2 -1, City of
Chanhassen, Minnesota" which is dated September 26, 1994 and on file in the office
of the City Manager.
1
1
C
i
1. 08. The City Council has fully reviewed the contents of the modified 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 Modification of the Plan for Tax Increment
Financing District No. 2 -1.
2.01. It is the opinion of the Council that development of the properties
included within the boundaries of Tax Increment Financing District No. 2 -1 would
not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future due to the lack of an adequate access road and that the
use of tax increment financing is therefore necessary.
2.02. The Council finds that the modified Plan for Tax Increment Financing
District No. 2 -1 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 modified Plan for Tax Increment Financing
District No. 2 -1 will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for development of the Development District by private
enterprise.
2.04. The Council further finds that the authorization for additional public
expenditures and other changes reflected in the modified Plan for Tax Increment
Financing District No. 2 -1 is intended, and in the judgment of the Council, their
effect will be to promote the public purposes and accomplish the objectives specified
in the modified Plan.
Section 3. Approval of the Modified Tax Increment Financing Plan.
3.01. The modified Tax Increment Financing Plan for Tax Increment Financing
District Nos. 2 -1 is hereby approved and adopted.
3.02. The modification of the budget and other matters related to Tax
Increment Financing District No. 2 -1 is described in the modified Tax Increment
Financing Plan therefor and are incorporated herein by reference. This modification
of the Plan for Tax Increment Financing District No. 2 -1 does not involve the
addition of any property to the tax increment district.
3.03. The City Manager is authorized and directed to file a copy of the
modified Tax Increment Financing Plan with the Minnesota commissioner of revenue.
DATED: September 26, 1994
'
ATTEST:
Donald Ashworth, City Clerk /Manager
2
Donald Chmiel, Mayor