5. Public Hearing Regarding the Modification of TIF District No 2-1 and 2-2 r
C ITYOF
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CHANHASSEN
}, 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
Action by CitY Administrator
sr7tiorsec bw!}
MEMORANDUM
Rejected
• DatP / "7 e3
TO: Don Ashworth, City Manager Dete Submitted to Cammissifitt
FROM: Todd Gerhardt, Assistant City Manager 17 G, Dete Submitted to Coun4
/ -9 3
DATE: October 7, 1993
SUBJ: Public Hearing Regarding the Modification of TIF District No. 2 -1 and 2 -2;
Development District No. 2
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Attached for the City Council's consideration is the modification of TIF District No. 2 (see
Attachment No. 2). Under state statute, the City Council must hold a public hearing to solicit
citizen comments regarding the proposed modifications. The proposed changes consist of the
following:
1. The city proposing is to purchase 40 acres of land with the intent to resell 20 acres to
Independent School District (ISD) 112 for $320,000. On the remaining portion of the
property, the city is proposing to construct an indoor /outdoor park/recreational facility at
a cost of $2,300,000.
The roads and related public improvements are estimated to be $1,000,000. This cost .
would be equally split between the city and ISD 112.
2. The city is also proposing to purchase 14 acres of land that would be used for a park and
trail system on a site within TIF District No. 2 -1 for an approximate cost of $120,000.
The City Council should note that this is only an estimate. Once the city and seller come
to terms on the purchase price, the City Council would then, again, have to go through
the public hearing and modification process.
The proposed modification has been sent to both ISD 112 and Carver County for their review,
and no comments have been received from either agency (see Attachment No. 3).
The Planning Commission also reviewed the proposed modifications and have found them
consistent with the overall development of the community and the Comprehensive Plan.
.1
.1 Mr. Don Ashworth
October 7, 1993
1 Page 2
Recommendation
1 Staff would recommend that the City Council adopt the attached resolution (see Attachment No.
4) approving the modifications to Development District No. 2 and TIF District No. 2 -1 and 2 -2.
Attachment
1 1. Location map.
2. Modification Plans for District Nos. 2 -1 and 2 -2.
3. Letters to ISD 112 and Carver County.
' 4. Resolution
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FIGURE 1 % I
DEVELOPMENT LIFT STATION - A
DISTRICT NO. 2 1 1
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Development District No. 2
"m" T.I.F. District No. 2 -1
��•=■ T.I.F. District No. 2 -2 I
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MODIFIED DEVELOPMENT PROGRAM
DEVELOPMENT DISTRICT NO. 2
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and
MODIFIED TAX INCREMENT FINANCING PLAN,
TAX INCREMENT FINANCING DISTRICT NO. 2 -1
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CITY OF CHANHASSEN, MINNESOTA
1
October 11, 1993
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Prepared By:
HOLMES & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, MN 55402
- and -
' HOISINGTON GROUP, INC.
7401 Metro Blvd, #340
Edina, MN 55439
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44 f L� �4 V
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TABLE OF CONTENTS I
Page 1
I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT 1
NO. 2 1
A. Definitions. 1
B. Statutory Authority . 2
C. Statement of Objectives. 2
D. Environmental Controls . 3
E. Open Space to be Created. 3
F. Public Facilities to be Constructed. 3
G. Proposed Reuse of Property 3
H. Development District Financing. 3
I. Relocation 4
J. Administration of Development District 4
K. Description of Development District. 4 1
II. MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 2 -1 5
A. Statutory Authority . 5
B. Statement of Objectives. 5
C. Statement of Public Purpose 5
D. Development District Program 6
E. Description of TIF District. 6
F. Development District Contracts . 6
G. Classification of TIF District. 6
H. Modification of TIF Plan. 6
I. Use of Tax Increment. 6
J. Excess Tax Increment. 7
K. Limitation of Increment . 7
L. Limitation on Administrative Expenses . 8
M. Limitation on Boundary Changes. 8
N. Relocation 8
O. Parcels to be Acquired Within the TIF District. 8
P. TIF Account. 8 a
Q. Estimate of Project Costs. 8
R. Estimate of Bonded Indebtedness . 9
S. Original Tax Capacity. 9
T. Estimate of Captured Tax Capacity. 10
U. Duration of the TIF District. 10
V. Estimates of Impact on Other Taxing Jurisdiction. 10
W. Annual Financial Report. 10
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X. Assessment Agreements. 12
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. I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 2
I A. Definitions.
For the purposes of the modified Development District Program and modified
Tax Increment Financing Plan, the following terms shall have the meanings specified
1 below, unless the context otherwise requires.
"Administrative Expenses" means all expenditures of the City other than
I 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,
I 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,
1 fiscal consultants and planning or economic development consultants.
"City" means the City of Chanhassen, a municipal corporation under the laws
1 of the state of Minnesota;
"City Council" or "Council" means the Chanhassen City Council;
1
"City Development District Act" or "Act" means Minnesota Statutes, sections
469.124 through 469.134, as amended;
I "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
1 City;
"County" means Carver County, Minnesota;
I "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, and March 9, 1992. The Development District is again
1 being expanded as a result of this modification;
"Development Program" or "Program" means the Development Program for
I Development District No. 2, which adopted by the Council on October 10, 1988,
modified on May 22, 1989 and March 9, 1992, and which is hereby again being
modified;
I "Project Area" or "Project" means the property within modified Development
District No. 2, as described in the modified Development Program;
I "State" means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax increment
I 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, and March 9, 1992, and which is hereby being
modified again.
B . Statutory Authority.
The City has determined that it is necessary, desirable and in the public
interest to establish, designate, develop and administer a Development Program for
Development District No. 2 in the City, pursuant to the provisions of the Act. The
City has also determined that the funding of the necessary activities and
improvements in Development District No. 2 shall be accomplished in part or in whole
through tax increment financing in accordance with the TIF Act.
C . Statement of Objectives .
The City seeks to achieve the following objectives through the Development 1
Program:
1. promote and secure the prompt development of property in
Development District No. 2 in a manner consistent with the
Comprehensive Plan and with minimal adverse impact on the
environment, which property is currently less productive
because of the lack of proper utilization and' lack of investment,
thus promoting and securing the development of other land in the
City;
2. promote and secure additional employment opportunities within
Development District No. 2 and the City for residents of the City
and the surrounding area, thereby improving living standards
and preventing unemployment and the loss of skilled labor and
other human resources in the City;
3. secure the increase of property subject to taxation by the City, 1
county, school district, and other taxing jurisdictions in order
to better enable such entities to pay for public improvements and
governmental services and programs required to be provided by
them;
4. secure the construction and provide moneys for the payment of
the cost of public activities or improvements in Development
District No. 2, including the construction of public recreational
facilities, which are necessary for the orderly and beneficial
development of the Development District; and 1
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5. promote the concentration of appropriate development within
Development District No. 2 in order to maintain the area in a
I manner consistent with its significance to the City.
D . Environmental Controls .
It is anticipated that no development within the Development District will
present major environmental concerns . All City actions, public improvements and
private development will be carried out in a manner which will comply with applicable
environmental standards.
E. Open Space to be Created.
The open space expected to be created within the Development District will be
in accordance with the development controls of the City.
F. Public Facilities to be Constructed.
The City proposes to construct water and sanitary sewer within the
Chanhassen Business Center area. The City also intends to develop a park and an
adjacent recreational facility for use by city residents in conjunction with a new
school proposed to be constructed by Independent School District No. 112. These
will occupy a 40 -acre site in the southeast quadrant of Co. Rd. 19 and Arboretum
Boulevard within Development District No. 2. The City will purchase land for a
second park within TIF District No. 2 -2. All public facilities constructed within the
Development District will be financially feasible and compatible with the City's long
111 range development plans .
G . Proposed Reuse of Property .
1 Property will be acquired in the future for construction of the public
improvements, parks and the recreational facilities associated with a new school
discussed in Section F above. All proposals for the use of property to be acquired
' by the City must be consistent with Development Program objectives and financially
feasible. Prior to acquisition of any property for reuse by a private developer, the
City Council may require a development contract and other guarantees to ensure that
sufficient tax increment or other funds will be available to repay the cost associated
with the property acquisition. Appropriate restrictions regarding the reuse and
redevelopment of property shall be incorporated into any development contract to
which the City is a party.
H. Development District Financing.
The City has created two TIF Districts within Development District No. 2.
Public improvement costs incurred in Development District No. 2 will be paid through
the pledge of tax increment from TIF District No. 2 -1 and TIF District No. 2 -2.
1 I .
Relocation.
The City anticipates that no relocation will be necessary but accepts its
responsibility for providing for relocation pursuant to section 469.133 of the Act.
If relocation is necessary, provisions will be made in accordance with Minnesota
Statutes, sections 117.50 through 117.56, inclusive.
1.
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J. Administration of Development District.
Maintenance and operation of the public improvements will be the
responsibility of the Administrator of Development District No. 2. Each year the
Administrator will submit to the City Council the maintenance and operation budget
for the following year. The Administrator will administer the Development District
pursuant to the provisions of section 469.131 of the Act; provided, however, that
such powers may only be exercised at the direction of the City Council. No action
taken by the Administrator shall be effective without authorization by the City
Council. 1
The City does not anticipate the need to create an advisory board to advise the
City Council on the planning, construction and implementation of the activities and
improvements outlined in the Development District Program.
K . Description of Development District.
Land is being added to Development District No. 2 as a result of this
modification. Figure 1 is a map of the new boundaries of the Development District
as they will appear after adoption of this modification. 1
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1 II. MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 2 -1
A. 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. No
additional land is being included in TIF District No. 2 -1 as a result of this
modification.
B . Statement of Objectives.
In addition to the objectives outlines in Section I, subdivision C of the
modified Development Program, 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 water and sanitary sewer 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.
C. Statement of Public Purpose.
I Ins 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;
1 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 .
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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.
D. Development District Program. 1
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 and March 9, 1992.
This modification of the Plan for TIF District No. 2 -1 includes a modified
Development District Program as well.
E. Description of TIF District. 1
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.
F. Development District Contracts. 1
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.
G. Classification of TIF District. J
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.
H. Modification of TIF Plan. 1
The Plan for TIF District No. 2 -1 is being modified at this time to authorize
expenditures for park and recreation facilities to be developed in cooperation with
Independent School District No. 112. 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 and after such discussion, public hearing and
findings as required for approval of the original Plan. 1
I. Use of Tax Increment.
Pursuant to section 469.176, subd. 4 of the TIF Act, all revenues derived from 1
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.
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J. 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;
I 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.
K . Limitation of Increment .
1. No increment shall be paid to the City from TIF District No. 2-1
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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
1 (b) the City has acquired property within TIF District No. 2 -1,
or (e) the City has constructed or caused to be constructed
public improvements within TIF District No. 2 -1.
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
1 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
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.
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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.
L . Limitation on Administrative Expenses.
Pursuant to section 469.176, Subd. 3 of the TIF Act, Administrative Expenses
are limited to 10 percent of the total tax increment expenditures. 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. u
M. 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. ,
N. Relocation.
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.
O. 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.
P. TIF Account . 1
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 .
Q. 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.
The following are estimates of additional costs to be incurred as a result of this
fourth modification:
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I Land Acquisition (40 acres) $ 920,000
Resale of 20 acres to I.S.D. No . 112 (320,000)
1 Roads and related public improvements 1,000,000
I Recreational facilities 2,300,000
Administration expenses 100,000
1 TOTAL $ 4,000,000
I 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
I 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
1 added value.
The amount of the reduction for which a property owner is eligible is equal to
I 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.
I 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
1 agreement with the City.
R. Estimate of Bonded Indebtedness.
1 The City has previously sold bonds to pay for the improvements to Audubon
Road. The City intends to sell additional tax increment bonds in the amount of
$680, 000 to pay for the improvements authorized by this modification.
I S . Original Tax Capacity.
I 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
I 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.
1 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 1. change in the tax exempt status of the property;
1 2. reduction or enlargement of the geographic boundaries of the TIF
District;
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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. 1
T. 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 fourth
modification does not involve the addition of property to the TIF District, the City
has not revised its estimate of captured tax capacity. 1
U. 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 .
V. Estimates of Impact on Other Taxing Jurisdiction.
The City included its estimate of the impact of TIF District No. 2 -1 in the 1
original Plan adopted on October 10, 1988, and the modified Plan adopted on May 22,
1989. Since this fourth 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 the TIF
District No. 2 -1 on other taxing jurisdictions.
W. Annual Financial Report. 1
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; r
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;
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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
1 amount expended for the following categories:
a. acquisition of land and buildings through condemnation or
I purchase;
b. site improvement or preparation costs;
I 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
1 to the City and the price paid by the developer; and
6. the amount of tax exempt obligations, other than those reported
I under clause (3) , which were issued on behalf of private entities
for facilities located in TIF District No. 2 -1.
1 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
I bonds that are outstanding at the end of the previous calendar
year; and
I 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 .
;11 The City must annually report to the commissioner of revenue the following
amounts for TIF District No. 2 -1:
1 1. the type of district, whether economic development,
redevelopment, housing, soils condition, mined underground
I space, or hazardous substance site;
2. the date on which the district is required to be decertified;
1 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;
1 4. the tax increment revenues for taxes payable in the current
calendar year;
1 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
1 district, (ii) for deposit into a common fund from which money
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may expended ex ended on activities located outside of the district, or
(iii) to otherwise finance activities located outside of the tax
increment district; and 1
6. any additional information that the commissioner of revenue may
require.
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X. Assessment Agreements.
Pursuant to section 469.177, subdivision 8 of the TIF Act, the City may, upon 1
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
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CH13-11
CH130 -11 12
FIGURE 1
I „ / R {_
.ur mfs
111 t,
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1
_-)'. f.G No.2 -1 111 la RENAISSANCE
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10
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FIGURE 1
DEVELOPMENT
I S LIFT STATION
11 DISTRICT NO. 2
11 c;
• IN Development District No. 2
il
""'•••"" T.I.F. District No. 2 -1
1 aMsWO all III T.I.F. District No. 2 -2
0 1000' 2000' 3000'
I
1 .
t
I
1
1
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1
MODIFIED TAX INCREMENT FINANCING PLAN, •
TAX INCREMENT FINANCING DISTRICT NO. 2 -2 1
CITY OF CHANHASSEN, MINNESOTA 1
October 11, 1993 1
•
1
1
1
1
Prepared By:
HOLMES & GRAVEN, CHARTERED 1
470 Pillsbury Center
Minneapolis, MN 55402
-and - 1
HOISINGTON GROUP, INC.
7401 Metro Blvd, #340
Edina, MN 55439
1
1
1
I TABLE OF CONTENTS
1 Paze
I I. MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 2 -2
I A. Definitions. 1
B. Statutory Authority. 2
C. Statement of Objectives. 2
Statement of Public Purpose 2 I D.
E. Development District Program 3
F. Description of TIF District. 3
G. Development District Contracts . 3
I H. Classification of TIF District 3
I. Modification of TIF Plan. 3
J. Use of Tax Increment. 4
I K. Excess Tax Increment. 4
L. Limitation of Increment. 4
M. Limitation on Administrative Expenses. 5
N. Limitation on Boundary Changes. 5
I O. Relocation 5
P. Parcels to be Acquired Within the TIF District. 5
Q. TIF Account. 5
I R. Estimate of Project Costs 6
S. Estimate of Bonded Indebtedness. 6
T. Original Tax Capacity. 6
I U. Estimate of Captured Tax Capacity 7
V. Duration of the TIF District 7
W. Estimates of Impact on Other Taxing Jurisdiction. 7
X. Annual Financial Report. 8
1 Y. Assessment Agreements . 9
1
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1
1
1
1
1 (i)
1
I. MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 2 -2
A. Definitions. 1
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" 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 1
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,
expanded on May 22, 1989 and March 9, 1992, and which is again being expanded; 1
"Development Program" or "Program" means the Development Program for
Development District No. 2, which adopted by the Council on October 10, 1988,
modified on May 22, 1989 and March 9, 1992, and which is again being modified;
"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 1
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;
1
cai3o -11 1
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i "Tax Increment Financing District" means Tax Increment Financing District
No. 2 -2, which establishing pursuant to and in accordance with the TIF Act on March
1 9, 1992;
"Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes,
sections 469.174 through 469.179, inclusive, as amended; and
I "Tax Increment Financing Plan" or "Plan" means the TIF Plan for TIF District
No. 2 -2 which was adopted on March 9, 1992 and is hereby being modified.
1 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 -2 and established TIF District No. 2 -2 within
Development District No. 2.
1 C. Statement of Objectives.
The City seeks to achieve the following objectives through the modified Plan
I for TIF District No. 2 -2:
1. provide employment opportunities within the City;
1 2. improve the tax base of the City and the general economy of the
City and state;
I 3. encourage development in an area of the City which has not been
utilized to its full potential;
I 4. provide for additional water and sanitary sewer improvements;
5. provide park facilities for residents of the community; and
I 6. implement relevant portions of the Comprehensive Plan.
1 D. Statement of Public Purpose.
In adopting the TIF Plan, the City Council intends to make the following
I findings:
1. Anticipated development would not reasonably be expected to
occur solely through private investment within the reasonably
I foreseeable future and, therefore, the use of TIF is deemed
necessary;
I 2. The TIF Plan will afford maximum opportunity, consistent with
the sound needs of the City as a whole, for development of the
District by private enterprise; and
1 3. The TIF Plan conforms to general plans for development of the
City as a whole.
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Ra828376
1 ca13o -11 2
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The conclusion summarized in paragraph 1 of this subdivision will be adopted I
by the City upon approval of the modified TIF Plan 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 on October 10, 1988, at the same
I
time as TIF District No. 2 -1 was established. The Program was modified on May 22,
1989 and March 9, 1992, and is being modified again at this time. This modified Plan
for TIF District No. 2 -2 is consistent with the modified Program for Development
I
District No. 2.
F. Description of TIF District. I
A map of the boundaries of TIF District No. 2 -2 was included in the original
Plan adopted on March 9, 1992. No additional property is being added to TIF
District No. 2 -2 as a result of this modification. 1
G . Development District Contracts.
The City has not entered into any development contracts for properties within
1
TIF District No. 2 -2. If necessary, contracts regarding property within the TIF
District will be entered into 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 -2
III
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. 1
TIF District No. 2 -2 is an economic development TIF district, pursuant to
section 469.174, subd. 12 of the TIF Act.
1
I. Modification of TIF Plan.
The City proposes to purchase property to be used for a park on a site within 1
TIF District No. 2 -2. The purpose of this modification is to amend the budget to
provide for this expenditure. The Plan for TIF District No. 2 -2 may again be
modified 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
II
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
I
City shall be approved upon the notice and after such discussion, public hearing and
findings as required for approval of the original Plan.
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CH130 -11 3 - 1
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i J. Use of Tax Increment.
I Pursuant to section 469.176, subd. 4 of the TIF Act, all revenues derived from
TIF District No. 2 -2 shall be used in accordance with the modified TIF Plan. The
revenues shall be used to finance or otherwise pay the capital and administrative
I costs of development activities within the Development District as identified in the
modified Development Program and TIF Plan.
K. Excess Tax Increment.
I 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 TIF
I Plan, the City shall use the excess amount to do any of the following, in the order
determined by the City:
I 1. prepay any outstanding bonds;
2. discharge the pledge of tax increment therefor; .
1 3. pay into an escrow account dedicated to the payment of bonds;
or
I 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
I capacity rates.
In addition, the City may choose to modify the TIF Plan in order to provide for
other public improvements within the Development District.
1 L. Limitation of Increment.
I 1. No increment shall be paid to the City from TIF District No. 2 -2
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
I have been issued pursuant to section 469.178 of the TIF Act, or
(b) the City has acquired property within TIF District No. 2 -2,
or (c) the City has constructed or caused to be constructed
1 public improvements within TIF District No. 2 -2.
2. If, after four years from the date of certification of the original
I tax capacity of TIF District No. 2 -2, 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 -2 by the
City, or by the owner of the parcel in accordance with the TIF
I 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 these activities
I subsequently commence, the City shall so certify to the county
auditor, and the tax capacity of the property as most recently
I RHB28376
CH130 -11 4
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certified by the commissioner of revenue may be added to the I,
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 -2. 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 -2.
I
3. No tax increment shall in any event be paid to the City from TIF
District No. 2 -2 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 TIF Plan, whichever occurs first.
M. Limitation on Administrative Expenses. 1
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
I increases the budget of TIF District No. 2 -2, 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. 1
N. Limitation on Boundary Changes.
The geographic area of TIF District No. 2 -2 may be reduced, but cannot be
I
enlarged after five years following the date of certification of original tax capacity
by the Carver county auditor. No additional property is being added to TIF District
No. 2 -2 as a result of this modification. 1
0. Relocation.
Although no relocation is anticipated, the City accepts as binding its I
obligations under state law for relocation and will administer relocation services for
families, individuals and businesses displaced by public action.
I
P. Parcels to be Acquired Within the TIF District.
The City will acquire property within TIF District No. 2 -2 for a park. These
I
properties are identified on Figure 1.
Q. TIF Account.
III
The tax increment received with respect to TIF District No. 2 -2 shall be
segregated by the City in a special account on its official books and records and held 111 by a trustee for the benefit of holders of bonds issued to finance development
activities .
R . Estimate of Project Costs. 1
The original Plan for TIF District No. 2 -2 identified estimated costs totalling
$1,890,000 for specified public improvements. The following is an estimate of
additional costs to be incurred in connection with the modifed Plan for TIF District
No. 2 -2:
1
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CH130 -11 5 1
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Land park uisiton for ark $ 115,000
q
1 Administration 5 , 000
TOTAL $ 120,000
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.
1 S. Estimate of Bonded Indebtedness.
The City does not intend to sell tax increment bonds to pay for the costs
1 authorized by this modified TIF Plan.
T . Original Tax Capacity.
1 The original tax capacity of the land included within TIF District No. 2 -2 was
$3,676. 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
1 District No. 2 -2, no increment will be payable to the City.
Each year after the certification of the original tax capacity, the county
auditor will increase or decrease the original tax capacity of property within TIF
' District No. 2- as a result of:
1. change in the tax exempt status of the property;
1 2. reduction or enlargement of the geographic boundaries of the TIF
District;
1 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 or
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4. any change in tax classification under Minnesota Statutes,
section 273.13 of property after it has been added to the TIF
District. 1
In addition, each year the auditor shall add to the original tax capacity of TIF
District No. 2 -2 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.
1
The City's estimate of captured tax capacity within TIF No. 2 -2 was contained
in the original Plan adopted on March 9, 1992. Since this first modification does not
involve the addition of any property to the TIF District, the City has not revised its
estimate of the captured tax capacity.
V. Duration of the TIF District.
1
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 TIF Plan, whichever
occurs first.
W. Estimates of Impact on Other Taxing Jurisdiction. 1
•
The City included its estimate of the impact of TIF District No. 2 -2 in the
original Plan adopted March 9, 1992. Since this modification does not involve 1
additing any property to TIF District No. 2 -2, the City has not changed its estimate
of the fiscal impact of TIF District No. 2 -2 on other taxing jurisdications.
1
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 -2. 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
1. the original tax capacity of TIF District No. 2 -2;
2. the captured tax capacity of TIF District No. 2 -2, 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 -2;
4. for the reporting period and for the duration of TIF District No.
2 -2, the amount budgeted under the TIF Plan and the actual
amount expended for the following categories:
1
a. acquisition of land and buildings through condemnation or
purchase; 1
RHH28376
CH130 -11 7 1
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b. site improvement or preparation costs;
1 c . installation of public utilities or other public
improvements;
I d. administrative costs, including the allocated cost of the
City;
1 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
I under clause (3), which were issued on behalf of private entities
for facilities located in TIF District No. 2 -2.
I 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
1 bonds that are outstanding at the end of the previous calendar
year; and
I 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
I financing bonds.
The City must annually report to the commissioner of revenue the following
amounts for TIF District No. 2 -2:
1 1. the type of district, whether economic development,
redevelopment, housing, soils condition, mined underground
1 space, or hazardous substance site;
2. the date on which the district is required to be decertified;
1 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;
1 4. the tax increment revenues for taxes payable in the current
calendar year;
1 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
I 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
1 increment district; and
6. any additional information that the commissioner of revenue may
I require.
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CH130 -11 8
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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 I
duration of TIF District No. 2 -2. 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 I
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
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RHBZ8376 r
• CH130 -11 9
1 FIGURE 1
1 r ,.. j( __ BOULEVA
I
SCHOOL SITE
I IOW
No. 2 -1 1*
1 J F r °
1 C1 1 ir,,� I�
' AENA,SSAN�E i _
:r1 NO' V PARK '
! L : x , SITE
'6 /44. !TA am
\ 4)
No 2-2 , 0 V % -, ‘ ‘
I --=-.---J \ C
I r — ,\ 7
_, . 1 No. 2 Z CC
i „; . - �O ---.4
, „-);
lir \J _...—
FIGURE 1
DEVELOPMENT ��
II LIF STATION -
DISTRICT NO. 2 AL
t;
1 S1 � Development District No. 2
"""' T.I.F. District No. 2 -1
1 mmi.."■ T.I.F. District No. 2 -2
O 1000' 2000' 3000'
1
HOLMES & GRAVEN
CHARTERED
Attorneys at Law JOHN M. LEFEVRE, JR.
470 Pillsbury Center, Minneapolis, Minnesota 55402 ROBERT J. LINDALL
ROBERT A. ALSOP (612) 337.9300 LAURA K. MOLLET
RONALD H. BATTY BARBARA L PORTwoOD
STEPHEN J. BUBUL Facsimile (612) 337.9310 JAMES M. STROMMEN
JOHN B. DEAN JAMES J. THOMSON, JR.
LARRY M. WERTHEIM
ST EFANI L N N. FA S BONNIE L WILKINS
N. GALALEY
CORRINE A. HEINE GARY P. WINTER
JAMES S. HOLMES WRITER'S DIRECT DIAL DAVID L GRAVEN (19294991)
DAVID J. KENNEDY (612) 337 -9262
JOHN R. LARSON OF COUNSEL
WELLINGTON H. LAW ROBERT C. CARLSON
CHAILES L. LEFEVERE ROBERT L. DAVIDSON
September 8, 1993
1
1
Mr. Dick Stolz
County Administrator
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
RE: Fourth Modification of Tax Increment Financing District No. 2 -1; First
Modification of Tax Increment Financing District No. 2 -2; and Modification of
Program for Development District No. 2
Dear Mr. Stolz:
This is to notify Carver County that the City of Chanhassen will conduct a public
1
hearing on the captioned matters at the regular city council meeting on October 11,
1993, starting at 7:30 p.m. in the Chanhassen city hall. Enclosed are draft copies
of the three modified plans. A representative of the county is invited to attend the
meeting or you may send written comments regarding this matter to Mr. Don
Ashworth, Chanhassen City Manager.
If you have any questions regarding these matters, please feel free to call me at 337-
9262.
Sincerely, 1
I t Ronald H. : atty 1
RHB : ckr
Enclosures
1
fr/Pc/1'''''
1
HOLMES & GRAVEN
II CHARTERED
Attorneys at Law JOHN M. LEFEVRE, R.
470 Pillsbury Center, Minneapolis, Minnesota 55402 ROBERT J. LINDALL
ROBERT A. ALSOP (612) 337-9300 LAURA K. MOLLET
I BARBARA L PORTWOOD
RONALD H. BATTY Facsimile (612) 337.9310 JAMES M. STROMMEN
STEPHEN J. MAUL lofts J. THOMSON, JR.
JOHN N &DEAN AM MARY G. LARRY M. WERTHEIM
N. GALE BONNIE L WQ.KINS
I STEFANIE N. GALEY
CORRINE A. HEINE GARY P. WINTER
JAMES S. HOLMES WRITER'S DIRECT DIAL DAVID L. GRAVEN (1929-1991)
DAVID J. KENNEDY ( 612) 337 -9262 -
JOHN R. LARSON OF COUNSEL
I WELLINGTON H. LAW ROBERT C. CARLSON
CHARLES L. LEFEVERE ROBERT L. DAVIDSON
1
September 8, 1993
1
1
Mr. Robert J. Ostlund
I Director of Administrative Services
and Personnel
Chaska School District #112 .
1 1700 Chestnut Street
Chaska, MN 55318
RE: Fourth Modification of Tax Increment Financing District No. 2 -1; First
I Modification of Tax Increment Financing District No. 2 -2; and Modification of
Program for Development District No. 2
1 Dear Mr. Ostlund:
This is to notify the school district that the City of Chanhassen will conduct a public
I hearing on the captioned matters at the regular city council meeting on October 11,
1993, starting at 7:30 p.m. in the Chanhassen city hall. Enclosed are draft copies
of the three modified plans. A representative of the school district is invited to
attend the meeting or you may send written comments regarding this matter to Mr.
I Don Ashworth, Chanhassen City Manager.
If you have any questions regarding these matters, please feel free to call me at 337-
, 9262.
Sincerely,
.-Wt /4+/'
Ronald H. c atty
1 RHB : ckr
Enclosures
1
1
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA '
RESOLUTION
Date Resolution No.
Motion By Seconded By '
RESOLUTION ADOPTING A MODIFIED DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 2,
MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 2 -1 AND
MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 2 -2
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 for
Development District No. 2 and a Tax Increment Financing 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. On March 9, 1992, the City adopted a Tax Increment Financing Plan for
Tax Increment Financing District No. 2 -2.
1.03. The Program for Development District No. 2 was modified on May 22, '
1989 and March 9, 1992.
1.04. The Plan for Tax Increment Financing District No. 2 -1 was modified on
May 22, 1989, October 22, 1990 and March 9, 1992.
1.05. It has been proposed that the City again expand the boundaries of
Development District No. 2 and modify the Plans for Tax Increment Financing
District Nos. 2 -1 and 2 -2 in order to authorize financing of additional public
expenditures within Development District No. 2. 1
1.06. The Council has investigated the facts and has caused to be prepared
a modified Development Program for Development District No. 2 and modified Plans
for Tax Increment Financing District Nos. 2 -1 and 2 -2, describing the additional
actions to be undertaken by the City to aid the development of property within
Development District No. 2.
1.07. The City has performed all actions required by law to be performed
prior to the enlargement of Development District No. 2 and the modification of the
Plans for Tax Increment Financing District Nos. 2 -1 and 2 -2, including, but not
limited to, notification of Carver County and Independent School District No. 112;
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1 a review by the City planning commission of the modified Development Program for
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Development District No. 2 and the modified Tax Increment Financing Plans for Tax
I Increment Financing District Nos . 2 -1 and 2 -2 for their consistency with the general
plans for development of the City; and holding a public hearing regarding the
modified Program and Plans upon such notice as is required by law.
1 1.08. The modified Development Program and Tax Increment Financing Plan
are contained in documents entitled "Modified Development Program, Development
District No. 2 and Modified Tax Increment Financing Plan, Tax Increment Financing
I District No. 2 -1, City of Chanhassen, Minnesota ", and "Modified Tax Increment
Financing Plan, Tax Increment Financing District No. 2 -2, City of Chanhassen,
Minnesota ", both of which are dated March 9, 1992 and on file in the office of the
I City Manager.
1.09. The City Council has fully reviewed the contents of the modified
I Development Program and Tax Increment Financing Plans and has on this date
conducted a public hearing thereon at which the views of all interested persons were
heard.
1 Section 2. Findings Related to the Expansion of Development District No. 2
2.01. The Council hereby finds that the expansion of Development District
I No. 2 is intended, and in the judgment of the Council, its effect will be to provide
an impetus for additional industrial development in the City, increase employment,
and otherwise promote the public purposes and objectives specified in the modified
Development Program.
I 2.02. It is further found and determined that:
I a) The land added to Development District No. 2 would not be made
available for development without the public intervention and financial
assistance described in the modified Development Program and Tax
I Increment Financing Plans;
b) The modified Development Program will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the
I development of the District by private enterprise; and
c) In accordance with the findings of the planning commission, the
I modified Development Program conforms to the general plan for
development of the City as set forth in the City's comprehensive plan.
1 Section 3. Findings Related to the Modification of the Plans for Tax
Increment Financing District Nos. 2 -1 and 2 -2.
3.01. It is the opinion of the Council that development of the properties
I included within the boundaries of Tax Increment Financing District Nos. 2 -1 and 2 -2
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
I the use of tax increment financing is therefore necessary.
3.02. The Council finds that the modified Plans for Tax Increment Financing
1 District Nos. 2 -1 and 2 -2 conform to the general plan for development of the City,
based upon the recommendations of the planning commission.
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3.03. The Council finds that the modified Plans Pl ns for Tax Increment Financing
District Nos . 2 -1 and 2 -2 will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for development of the expanded District by private
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enterprise.
3.04. The Council further finds that the authorization for additional public
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expenditures and other changes reflected in the modified Plans for Tax Increment
Financing District Nos . 2 -1 and 2 -2 are 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 Tax Increment Financing Plans and Development
District Program.
Section 4 . Approval of the Modified Development Program and Tax Increment
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Financing Plans .
4.01. The modified Development Program for Development District No. 2 and
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the modified Tax Increment Financing Plans for Tax Increment Financing District
Nos. 2 -1 and 2 -2 are hereby approved and adopted.
4.02. The expanded boundaries of Development District No. 2 and the
modification of the budget and other matters related to Tax Increment Financing
District Nos. 2 -1 and 2 -2 are described in the modified Development Program and
modified Tax Increment Financing Plans therefor and are incorporated herein by
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reference. This modification of the Plans for Tax Increment Financing District Nos.
2 -1 and 2 -2 does not involve the addition of any property to either tax increment
district.
4.03. The City Manager is authorized and directed to file a copy of the I
modified Development Program and modified Tax Increment Financing Plans with the
Minnesota commissioner of trade and economic development. 1
DATED: October 11, 1993
Donald Chmiel, Mayor
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ATTEST:
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Donald Ashworth, City Clerk /Manager
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I , CITYOF
1 CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
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(612) 937 -1900 • FAX (612) 937 -5739
Action by aty Adm
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MEMORANDUM • orctorsert_ r ir�d__
cter
1 TO: Don Ashworth, City Manager Date Q 5 -
Date Submitted to Commisilii
FROM: Sharmin Al -Jaff, Planner I
Date Sumfl�Q to
DATE: October 6, 1993 a ' f ' 3
SUBJ: Senior Linkage Line Contract Approval
At the September 27, 1993, City Council meeting, staff recommended the City Council approve
I entering into a contact with Carver County and Senior Linkage Line /Senior Services to operate
the Senior Linkage Line. Action was tabled on this item because it was not published in the
I Villager. Staff has published this item in the October 7, 1993, issue.
A question was also raised regarding the support of the Senior Commission for this service. The
I Senior Commission lobbied strongly in favor of the Linkage Line and attended all public
meetings at the county level to get this greatly needed service implemented. They are strongly
in support of the contract.
I A third issue of concern was expense to the city. Our direct costs are minimal and have already
been absorbed by the senior budget. As outlined in the staff report dated September 21, 1993,
1 the City will provide the following:
* Local promotion of the program through city newsletter, local paper, flyers, etc.
I * A computer to install the information on, which is part of the Senior Center.
* Telephone equipment, which is part of the Senior Center.
* Staff/Volunteer Time. The city committed to staffing the phone from 9:00 a.m. to 12:00
1 * noon, Monday through Friday by using volunteers through the Senior Center.
Office space, which is available in the Senior Center.
1 * Note: All these facilities and equipment are dual purpose and are otherwise available to
support Senior Center functions. The city will not incur an additional cost for housing
this service.
I There is one minor issue with the ro am that can be labeled as technicality rather p gr an a ed ate cal ty ath tha n a
I problem. The county agreed to reimburse the city for items outlined under County
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Don Ashworth
October 6, 1993
Page 2
Commitments. This means that bills would have to be paid out of a city -fund before it gets
reimbursed for the amount. The problem occurs in that funds are being disbursed from the senior
1 account to pay these costs. While they will be reimbursed by Carver County, public agency
accounting practices do not allow these funds to be redeposited back into this account. Rather,
the reimbursement must be put into the City's general fund. Thus, without some correction, the
1 senior account will be running a technical deficit. We are having our Finance Department look
into the math and hope to be able to address the issue.
1 Attached you will find a copy of the contract between the city, county, and Senior Linkage
Line /Senior Resources that will be used to implement the program. It has already been endorsed
by the county. Staff is seeking City Council approval to enter into the contract on behalf of the
city.
RECOMMENDATION
Staff recommends that the City Council direct staff to enter into a contact with Carver County
1 and Senior Linkage Line /Senior Services to operate the Senior Linkage Line.
ATTACHMENT
1 1. Staff report dated September 21, 1993, and copy of the contract between the city, county,
and Senior Linkage Line /Senior Resources.
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City CounciI Meeting - September 27, 1993
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Mayor Chmiel: There's also an item here that I believe Mr. Whitehill is here on. Item 2(g). Is there
anything that you'd like to address on this one Cliff? 1
Cliff Whitehill: Mr. Mayor. I came here for an entirely different reason. I received no notice
whatsoever. Purely by accident I saw this...
Mayor Chmiel: Okay.
Cliff Whitehill: No notice whatsoever. Anyone in Colonial Grove. 1
Mayor Chmiel: You hadn't received anything at all?
Cliff Whitehill: Nothing.
Mayor Chmiel: Okay. My suggestion would be then we pull item 2(g) and move that to a meeting
within 2 weeks. Okay. Can I have a motion to move this from today and move it to October the 1 lth
meeting.
Councilman Mason: So moved.
Councilwoman Dockendorf: Second. i
Councilman Mason moved, Councilwoman Dockendorf seconded to table approval of the
Findings of Facts for Colonial Grove Homeowners Association Recreation, Beachlot Use Permit
until the October 11, 1993 City Council meeting. All voted in favor and the motion carried. •
Mayor Chmiel: We'll move right along now with the balance of the agenda. We have Visitor
Presentations. I'm looking for.
Councilman Senn: Don before you do, just a question. In this packet there's a 1(k) but nowhere on
the agenda is there a 1(k). Is that a separate item we're going to address or what?
Councilwoman Dockendorf: You're absolutely right. I saw that too.
Councilman Mason: Contract approval of Senior Linkage Line.
Paul Krauss: That was to be on a Consent Agenda. I'm not sure where the number came from. 1
Councilman Senn: Well it wasn't listed on the Consent Agenda but there's an informational packet.
Paul Krauss: Yeah. The last item was (j) so it must have been (k) didn't...
Mayor Chmiel: Yeah, that was for the Senior Linkage and somehow that was left off. 1
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City Council Meeting - September 27, 1993
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Councilwoman Dockendorf: Can we put it on?
Don Ashworth: I believe that was the intent.
Councilwoman Dockendorf: Without having it part of notification? Published.
Mayor Chmiel: Well this is where we're going to be providing local promotion of a program through
city newsletter, local papers, flyers, etc. Computer install the information on which is part of the
Senior Center. Telephone equipment is also part of the Senior Center. Staff volunteer time. City
committed to staffing the phones from 9:00 to 12:00 noon on Monday thru Friday by using volunteers
through the Senior Center and office space which is available for the senior center. And there's
another commitment by the Council as well for that.
Councilman Senn: The main thing I was just wondering, I guess I saw the item in here. There wasn't
anything in the newspaper about it. There's nothing in here really saying whether our Senior
Commission has seen it, endorsed it. Thinks it's the best thing or not the best thing.
1 Mayor Chmiel: Is there a time?
Don Ashworth: We've been operating it as a. pilot program. Delaying it for 2. I was going to say, if
the Council considers that an item, in all likelihood will not generate public participation. You could
waive your rules and pass it. If there's a question as to whether or not the Commission has approved
it, we can easily table the item for 2 weeks.
Paul Krauss: I can speak to that. Yeah, the Senior Commission was very actively involved with this.
This was kind of a ground breaking agreement we had with Carver County where we actually
cooperated with a Division of Senior Services together. And in fact the County signed off on this.
The Senior Commission's well aware of it and was very supportive of it. I don't know that it's
terribly pressing. I mean there's no public hearing specifically that's necessary. We have been
operating on a defacto...agreement but if you wanted to wait a couple of weeks, it probably doesn't
hurt anything either.
Mayor Chmiel: I don't see any real problem with laying this over for 2 weeks. Unless there's some
other concerns by Council. Okay.
Councilman Senn: I guess I would really like to see something from the Senior Commission as part
of the staff report if we could.
Mayor Chmiel: Move to October the 1lth agenda with some indication by the Senior Commission as
acceptance of what is being proposed. Okay.
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