3. Consider approving modification No 12 to redevelopment plan for Chanhassen downtown redev project 1
i 3
C ITYOF
• ‘ CHANHASSEN
690 COULTER DRIVE • P.O BOX 147 • CHANHASSEN, MINNESOTA 55317
I �f (612) 937 -1900 • FAX (612) 937 -5739
`tea Action by City Admin!stratot
/ Dwh
Ender Y _
1 MEMORANDUM End °� _
1111 TO: Don Ashworth, City Manager Deb. , tl „ ., -n
FROM: Todd Gerhardt, Assistant City Manager ,, Tc.ii
DATE: December 10, 1992
1 SUBJ: Public Hearing to Consider Approval of Modification No. 12 to the Redevelopment
Plan
1 Attached for your consideration is Modification No. 12 to the Redevelopment Plan and Tax
Increment Financing Plat for the Chanhassen Downtown Redevelopment Project. Under state
I statute, the City Council must hold a public hearing when considering a modification to the
redevelopment plan.
1 Both the Planning Commission and the HRA have approved the modified plan and found it to
be consistent with the City's overall Comprehensive Plan. Copies of this plan have also been
I sent to School District #112 and Carver County for their review (see Attachment #3).
Listed below is a summary of the proposed modifications to the plan:
1 1. Target Store: The HRA intends to purchase approximately 16 acres for development of
a Target Store and the creation of several outlots. The project will be located north of
I Highway 5 and south of West 78th Street. A portion of West 78th Street will be vacated
to accommodate the project. Target will occupy a site of slightly more than 10 acres.
I 2. Taco Shop /Apple Valley Red -E -Mix: These properties on Highway 5 will be redeveloped
with more attractive and appropriate land uses. Plans call for use of portions of these
sites for highway related amenities, including a rest stop or open space. Other portions
1 will be developed for highway - oriented commercial uses.
3. Conference Center/Recreational Center: The HRA intends to acquire property north of
1 the Soo Line Railroad in the vicinity of the Chanhassen Dinner Theatre, including the
FMG Warehouse, Chanhassen Bowling Center and Frontier Building. Plans call for
1
t sir�
1 PRINTED ON RECYCLED PAPER
1
Don Ashworth
December 10, 1992
Page 2
development of a multi - purpose conference center /recreation center/bowing facility.
Retail uses, including a cinema or restaurant, and a library may also be included.
4. The HRA is committed to certain additional expenditures which will be of mutual benefit
1 to the HRA, Carver County and School District #112.
RECOMMENDATION
Staff would recommend that the City Council adopt the following motion:
1 "The City Council approves the attached resolution approving Modification No. 12 to the
Redevelopment and Tax Increment Financing Plan for the Chanhassen Downtown Redevelopment
Project ."
ATTACHMENTS
1 1. Tax Increment Plan.
2. Resolution.
3. Letter to School District #112 and Carver County.
1
1
1
1
1
1
1
1
1
1
1
1
REDEVELOPMENT PLAN
AND
TAX INCREMENT FINANCING PLAN
FOR
DOWNTOWN CHANHASSEN REDEVELOPMENT AREA 1
1
CITY OF CHANHASSEN
MODIFICATION NO. 12
December 14, 1992
1
1
Prepared By:
HOLMES & GRAVEN, CHARTERED 1
470 Pillsbury Center
Minneapolis, Minnesota 55402
1
1
1
•
1
1 TABLE OF CONTENTS
Page
1 I. Redevelopment Plan 1
I A. Definitions 1
B. Project Area. 2
C. Project Area Redevelopment Objectives. 2
D. Proposed Project Area Redevelopment Activities. 3
I E. Project Area Plan 4
F. Project Area Financing 5
1 II. Tax Increment Financing Plan 6
A. Statutory Authority 6
B. Statement of Objectives 6
I C. Statement of Public Purpose 6
D. Relation to Redevelopment Plan 7
E. Boundaries of TIF District 7
I F. Description of Downtown Redevelopment Area 7
G. Development and Other Agreements 7
H. History and Classification of TIF District 8
I 1. Modification of TIF Plan 8
J. Use of Tax Increment 8
K. Excess Tax Increment 8
L. Duration and Modification of the TIF District 9
I M. Relocation 9
N. Properties to be Acquired Within the TIF District 9
O. Public Improvements Plans 9
I P. Estimate of Project Costs 9
Q. Original Tax Capacity. 10
R. Estimate of Captured Tax Capacity and Tax Increment 11
S. Estimate of Impact on Other Taxing Jurisdictions 10
1 T. Annual Report Regarding TIF 11
1
1
1
1
1
1
(i)
1
I. REDEVELOPMENT PLAN
A. DEFINITIONS. 1
For the purposes of the Redevelopment Plan and Tax Increment Financing
Plan, the following terms shall have the meanings specified below, unless the context 1
otherwise requires
"City" means the City of Chanhassen, a municipal corporation under the laws
of the state of Minnesota;
1
"Comprehensive Plan" means the City's Comprehensive Plan, including the
objectives, policies, standards and programs to guide public and private land use,
development, redevelopment and preservation for all lands and water within the
City;
"City Council" or "Council" means the Chanhassen City Council;
1
"County" means Carver County, Minnesota;
"HRA Act" means Minnesota Statutes, sections 469.001 through 469.047, as 1
amended;
"Housing and Redevelopment Authority" or "HRA" means the Housing and
Redevelopment Authority in and for the City of Chanhassen, Minnesota, created
pursuant to the HRA Act;
"Redevelopment Plan" means the plan for redevelopment of the Project,
originally adopted by the City on December 19, 1977, and as subsequently modified;
"Redevelopment Project" or "Project" means the redevelopment project
established by the City on December 19, 1977, in downtown Chanhassen and
expanded on December 18, 1978, to include the Chanhassen Lakes business park
1 south of T . H . 5, pursuant to Minnesota Statutes, sections 469.001 through 469.047;
"State" means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax increment
bonds issued by the City to finance the public costs associated with the Project as
stated in the Redevelopment Plan and in the TIF Plan, or any obligations issued to
refund the Tax Increment Bonds;
"Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes,
1 sections 469.174 through 469.179, as amended; and
"Tax Increment Financing District" means the tax increment financing district
established within the downtown redevelopment area and the Chanhassen Lakes
business park area;
"Tax Increment Financing Plan" or "TIF Plan" means the plan by which the
HRA intends to assist development within the Project, which Plan was originally
adopted on December 19, 1977, and as subsequently modified. This marks the
twelfth formal modification of the TIF Plan.
88826558
08130 -5 1 1
1 B. PROJECT AREA.
The Chanhassen Downtown Redevelopment Project Area contains
' approximately 630 acres of land. One hundred seventy -five acres are located
north of STH 5 and .comprise what is generally recognized as downtown
Chanhassen. The remainder of the Project Area is south of STH 5 in the
Chanhassen Lakes business park. Together these areas comprise the Project
Area.
The Project Area is generally described as being bounded by Audubon
' Road on the west; STH 101 on the east; the north shore of Lake Susan as
extended westward to Audubon Road on the south and STH 5 and West 78th
Street on the north, but also includes lands north of West 78th Street that are
1 presently zoned for business and multi - family housing uses.
The Project Area officially includes all lands shown in Figure 1 of
' Modification No. 11, dated April 17, 1992, and described in Exhibit A of City
Council Resolution No. 77 -72, dated December 19, 1977, Exhibit B of City
Council Resolution No. 78 -73, dated December 18, 1978, and in Subsection A
Project Area of Modification No. 9, adopted in November, 1989.
No property is being added to the Project Area as a result of this
modification.
1 C. PROJECT AREA REDEVELOPMENT OBJECTIVES.
The HRA through this Redevelopment Plan seeks to achieve the
following objectives:
1. Diversify the tax base of the City by encouraging commercial and
1 industrial development which in turn will enhance employment
opportunities, create stability in the tax base and increase and
protect property values;
1 2. Encourage redevelopment of commercial and service - oriented
businesses to better serve the consumer needs of the community;
1 3. Remove structurally substandard buildings which cannot be
rehabilitated;
' 4. Acquire and remove buildings that are economically or
functionally obsolete or underutilized and acquire land that is
vacant or underutilized to facilitate redevelopment;
1 5. Eliminate blighting influences which impede potential development
in the area;
1 6. Provide redevelopment sites of the size and character necessary
to assure development of the area and strengthen the overall
economy and improve the sources of public revenue;
1 7. Promote industrial development, provide increased employment
opportunities and supplement the financial base of the
community;
88826558
1 0 130 -5 2
1
8. Provide land for publicly assisted housing; 1
9. Provide land for needed expansion of existing businesses in the
1 area;
10. Provide adequate street, utility and other public improvements
and facilities to enhance the area for both new and existing
development;
11. Achieve rehabilitation of buildings when economically feasible;
12. Accomplish the applicable goals of the City's Comprehensive
Plan;
13. Provide maximum opportunity, consistent with sound needs of
the City as a whole, for redevelopment by private enterprise;
14. Provide general design guidance in conjunction with suitable 1
development controls in order to enhance the physical
environment of the area;
15. Encourage and facilitate involvement of the community in
resolving neighborhood problems related to business, physical
structures and land use; and 1
16. Provide financial incentives as appropriate to stimulate growth
and private sector redevelopment efforts within the Project Area.
D. PROPOSED PROJECT AREA REDEVELOPMENT ACTIVITIES.
The stated objectives of the Redevelopment Plan are intended to be
accomplished through the following actions of the HRA:
1. Clearance and redevelopment; 1
2. Relocation of buildings and the inhabitants of buildings;
3. The provision of building sites for new and expanding
1
businesses;
4. Vacation of rights -of -way;
1
5. Dedication of new rights -of -way;
6. Land acquisition and leasing; 1
7. Soils corrections and land preparation;
8. A Special Assessment Reduction Program designed to stimulate
development within the Project Area;
9. New construction, or improvement of public streets and parking 1
lots;
88826558
C11130 -5 3 i
1 10. Installation or replacement of public facilities and utilities;
11. Financial subsidies to induce businesses to locate within the
1 Project Area; and
12. Landscaping and streetscape improvements .
1 E. PROJECT AREA PLAN.
Figure 2 of Modification No. 11, dated April 17, 1992 portrays the
1 overall plans for the Project Area. Plan highlights include the following:
1. The Chanhassen Lakes business park comprising 450 acres, fully
1 served by sewer, water and landscaped streets;
2. The downtown redevelopment area which is intended to be
redeveloped for a multiplicity of uses including convenience and
I specialty retail, services, entertainment, recreational, cultural,
office, institutional and multi - family residential and including
public parking to adequately serve new developments;
1 3. A linear open space system within the business park and
including parks on Lake Susan and in downtown Chanhassen;
1 4. The relocation of STH 101 to intersect with STH 5 at Dakota
Avenue and remove traffic from the downtown area by routing it
directly to STH 5 and new Market Boulevard;
I 5. The extension of Lake Drive from County Road 17 to STH 101 to
accommodate local traffic demands;
1 6. The realignment of West 78th Street at County Road 17 to provide
adequate stacking distance between West 78th Street and STH 5;
1 7. The widening of County Road 17 from Lake Drive to the northerly
line of the tax increment financing district and the creation of an
urban section in this Project Area;
I 8. The construction or reconstruction of public utilities within the
downtown redevelopment area to accommodate new development
I including the acquisition and construction of a major ponding
area with over a million cubic feet of storage to serve all of the
downtown area;
1 9. The construction of Market Boulevard from West 78th Street to
the southerly line of the tax increment financing district;
I 10. The construction of Lake Drive from Audubon to existing TH 101
and the upgrading of Audubon within the tax increment financing
district; and
1 11. Redevelopment of the area north of STH 5 extending from Great
Plains Boulevard easterly to realigned TH 101;
1
88826558
08130 -5 4
1
12. The development of a new park and the expansion of an existing 1
park;
13. Heritage preservation enhancements; 1
14. The meeting of public facility needs; and
15. Aesthetic improvements to Highway 5 to enhance the downtown 1
area's image and identity.
F. PROJECT AREA FINANCING.
The HRA has undertaken and intends to continue to develop plans for
public improvements and to make land available for redevelopment by private
parties within the Project Area. Previous Redevelopment Plans have contained
descriptions of new projects . New proposals proposed by the HRA at this time
are detailed in Subsection G of the accompanying modified Tax Increment
Financing Plan. The HRA intends to finance both public improvements and
redevelopment activities through a combination of special assessments and tax
increment financing. Special assessments levied within the Project Area may
be eligible for reimbursement through the HRA's Special Assessment
Reduction Program which is described in more detail in Subsection P of the
accompanying Tax Increment Financing Plan. Tax increment paid to the HRA
is pledged through a written agreement with the City for repayment of bonds
issued by the City to pay for public costs in the Project Area.
1
1
1
1
1
1
1
1
1
86826558
C11130 -5 5
1
1 II. TAX INCREMENT FINANCING PLAN
A. STATUTORY AUTHORITY.
' Pursuant to the HRA Act, the City on December 19, 1977 created the
Project in the downtown portion of Chanhassen north of Highway 5 and
established the area as a tax increment financing district. On December 18,
1978, the Project was expanded to include an additional 416 acres south of
Highway 5 and that area was also included as part of the TIF District. At the
time of the creation of the Project, the Redevelopment Plan was adopted by the
HRA and the City. The Redevelopment Plan contained details of the Project,
and included a brief discussion regarding the use of TIF. This constituted
the "statement of the method proposed for financing" the Project required at
1 that time by the HRA Act.
Due to changed circumstances and new development opportunities, the HRA
and City have chosen from time to time to amend the TIF Plan. The HRA and
the City now wish to adopt another modified TIF Plan which accurately reflects
the current financial plan for the Project, with particular emphasis on
downtown Chanhassen. This constitutes the twelfth modified TIF Plan.
' However, adoption of this modified TIF Plan does not constitute an election on
the part of the City or HRA to proceed with the Project under the TIF Act,
except to the extent required by section 469.179. The HRA and City intend
to continue to administer the Project as a TIF District created and certified
prior to August 1, 1979, to the extent permitted by law.
' B . STATEMENT OF OBJECTIVES.
The HRA and City seek to achieve the following objectives through the
modified TIF Plan:
1. Provide employment opportunities within the City;
2. Improve the tax base of the City and the general economy of the
City and State;
3. Encourage redevelopment of the Project Area which is an area of
1 Chanhassen which has not been utilized to its full potential;
4. Implement relevant portions of the City's Comprehensive Plan;
5. Assist in the acquisition of certain properties for the purpose of
constructing needed public improvements and promoting
redevelopment; and
6. Implement a program of special assessment reductions for
properties within the Project Area whose market values have
increased due to new construction since the creation of the TIF
District.
C. STATEMENT OF PUBLIC PURPOSE.
In adopting the modified TIF Plan and administering the Project, the
HRA and City have made the following findings:
88826558
1 08130 -5 6
1
1. Redevelopment of the Project would not reasonably be expected
1
to occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of TIF is deemed
necessary;
1
2. The Redevelopment and TIF Plans will afford maximum
opportunity, consistent with the sound needs of the City as a
whole, for development of the Project by private enterprise; and
3. The Redevelopment and TIF Plans conform to general plans for
the development of the City as a whole.
1
D. RELATION TO REDEVELOPMENT PLAN.
The City authorized the Project on December 19, 1977, and modified its
boundaries on December 18, 1978. Additional land was included within the
Project Area in connection with the adoption of Modification No. 7 to the TIF
Plan in 1987 and with Modification No. 11, dated April 17, 1992. This
Modification No. 12 does not add any property to the Project Area.
E. BOUNDARIES OF TIF DISTRICT.
1
Boundaries of the TIF District area are shown on Figure 1 of
Modification No. 11. The TIF District includes property in both the downtown
• and Chanhassen Lakes business park areas. Legal descriptions of the
boundaries of the TIF District were included as exhibits to Resolution
Nos . 77 -72 and 78 -73, adopted by City Council on December 19, 1977 and
December 18, 1978, respectively. The boundary of the TIF District will not
be changed ed as a result of this Modification No. 12.
F. DESCRIPTION OF DOWNTOWN REDEVELOPMENT AREA. 1
The downtown redevelopment area is the portion of the Project
originally created by the City in 1977. It consists of approximately 175 of the
Project's total of 630 acres. The downtown redevelopment area is located
north of Highway 5 and a majority of it is west of Highway 101 (Great Plains
Boulevard) . The area contains the retail and commercial core of the City,
including the Chanhassen Dinner Theater. Although the infrastructure and
public facilities have been improved significantly in recent years, the
downtown redevelopment area is still characterized by the underutilization of
land.
G. DEVELOPMENT AND OTHER AGREEMENTS.
The HRA has negotiated numerous agreements with developers in the
past seeking to develop land within the downtown redevelopment area. Many
of these projects have been outlined and discussed in previous modifications.
In addition to those matters, the following projects are the subject of current
or upcoming negotiation:
1. Target Store. The HRA intends to purchase approximately 16
acres for development of a Target Store and the creation of
several outlots. The project will be located north of Highway 5
and south of West 78th Street. A portion of West 78th street will
R8826558
08130 -5 7
1
be vacated to accommodate the project. Target will occupy a site
of slightly more than 10 acres.
2. Taco Shop /Apple Valley Redimix. These properties on Highway
5 will be redeveloped with more attractive and appropriate land
uses . Plans call for use of portions of these sites for highway-
related amenities, including a rest stop or open space. Other
1 portions will be developed for highway- oriented commercial uses .
3. Conference Center /Recreational Center. The HRA intends to
acquire property north of the Soo Line railroad in the vicinity of
the Chanhassen Dinner Theater, including the FMG Warehouse,
Chanhassen Bowling Center and Frontier Building. Plans call for
development of a multipurpose conference center /recreation
center /bowling facility. Retail uses, including a cinema or
restaurant, and a library may also be included.
1 H. HISTORY AND CLASSIFICATION OF TIF DISTRICT.
The TIF District was established by the HRA and City in late 1977 and
contained approximately 175 acres centered on what is now known as the
downtown redevelopment area. The TIF District was expanded the following
year with the inclusion of approximately 455 acres in the area south of
Highway 5 known as the Chanhassen Lakes business park. For purposes of
1 classification, the TIF District is a pre -1979 TIF District and the HRA and
City intend to retain that designatioh except as required by section 469.179
of the TIF Act.
1 I. MODIFICATION OF TIF PLAN.
This modification marks the twelfth formal modification of the TIF Plan.
The TIF Plan may be modified again in the future by the HRA and City as
changing conditions warrant.
1 J. USE OF TAX INCREMENT.
All revenues derived from the TIF District shall be used in accordance
with the current modified TIF Plan. The revenues shall be used to finance or
otherwise pay the capital and administrative costs of development activities
within the Project Area as identified in the TIF Plan. Tax increment paid to
the HRA is pledged through a written agreement with the City for repayment
1 of bonds issued by the City to pay for public costs in the Project Area.
K. EXCESS TAX INCREMENT.
1 In any year in which the increment exceeds the amount necessary to pay
the costs authorized by the TIF Plan, the HRA shall use the excess amount to
1 do any of the following, in the order determined by the HRA:
1. Prepay any outstanding bonds;
1 2. Discharge the pledge of tax increment therefore;
xEBze55e
CE130 -5 8
1
1
3. Pay into an escrow account to the county auditor who shall
distribute the excess amount to the City, the County and the
school district in direct proportion to their respective tax
capacity rates. 1
In addition, the HRA and City may choose to modify the TIF Plan again
in order to provide for public improvements or other development costs within ,
the Project.
L. DURATION AND MODIFICATION OF THE TIF DISTRICT.
The geographic area of the TIF District may be reduced but it cannot 1
be enlarged after August 1, 1984. As a TIF District established prior to
August 1, 1979, the TIF District will expire on August 1, 2009, except as the
provisions of section 469.176, subdivision 1(e) of the TIF Act may require
otherwise.
M. RELOCATION. ,
The HRA accepts as binding its obligations under Minnesota Statutes,
sections 117.50 through 117.56 for relocation and will administer relocation
services for families, individuals and businesses displaced by public action.
N. PROPERTIES TO BE ACQUIRED WITHIN THE TIF DISTRICT.
Figure 3 of Modification No. 11 shows all properties which have been or
will be acquired within the Project Area as a result of actions described or
authorized by the TIF Plan. No additional property is scheduled for
acquisition as a result of this Modification No. 12.
O. PUBLIC IMPROVEMENTS PLANS. 1
Substantial public improvements have been undertaken during the last
several years within the Project Area. Additional improvements are
contemplated at the present time or in the near future.
P. ESTIMATE OF PROJECT COSTS.
Since the downtown redevelopment area is within an existing TIF
District, increment is currently being generated and administered by the
HRA. Increment generated by the TIF District has been collected by the HRA
since shortly after the creation and expansion of the TIF District and Project
in the late 1970s. Funds generated through tax increment have been used for
a variety of purposes, including land acquisition, relocation and public
improvements. The HRA commits itself to expend the portion of the increment
generated by the TIF District which is necessary to pay the outlined costs.
The HRA has also initiated a special assessment reduction program for
properties throughout the Project. 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.
1
RR826558
CB130 -5 9
I
I
1 Properties assessed at a rate of $30,000 per acre or more qualify for a
reduction equal to 12 percent of the added value.
I 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
I construction and commencing with the year in which the HRA receives the
first full year's increment, or such other three year period as may be agreed
to by the HRA and owner. However, the maximum reduction may not exceed
the total special assessments levied and outstanding against the parcel for
I qualifying public improvement projects. Owners wishing to participate must
enter into a special assessment reduction agreement with the HRA.
In addition to project costs outlined in previous modifications, the
following are costs anticipated for upcoming projects:
1 Land Acquisition
Taco Shop $ 313,000
Apple Valley Redimix 1,000,000
I James Property 490, 000
Burdick Property 2,736,000
Bowling Center 850,000
I Bloomberg Property 1,200,000
Subtotal 6,589,000
1 Administration 300,000
TOTAL $ 6,889,000
1 The HRA is committed to certain additional expenditures which will be of
mutual benefit to the HRA, Carver County and I.S.D. No. 112. The HRA
I intends to expend $500,000 per year during the period 1996 through 2000 on
county highway projects within the Project Area. During the same period the
HRA is committed to redistributing a similar amount through a voluntary
agreement with I . S. D. No. 112 regarding increment produced as a result of
I school referenda adopted after the date of certification of the tax increment
financing district.
I Under current state law, the HRA's activities within the Project Area
will be substantially curtailed beginning on April 1, 2001. The HRA intends
to seek adjustment of those restrictions from the Minnesota legislature and will
seek the support of Carver County and I. S. D. No. 112 in its efforts to secure
I special legislation for this purpose. If the HRA is successful in these efforts,
the HRA will initiate a discussion with the county and school district
regarding sharing increment during the period following April 1, 2001.
1 Q. ORIGINAL TAX CAPACITY.
I The Tax Increment Financing District has been highly successful in
meeting the goals and objectives outlined in this Plan. With the completion of
all projects currently anticipated, over three million square feet of commercial
I and industrial space will have been constructed. The current total tax
RE1326558
CE130 -5 10
1
1
capacity of the Tax Increment District is $3,579,891 with a base tax capacity
of $150,972.
R. ESTIMATE OF CAPTURED TAX CAPACITY AND TAX INCREMENT.
The estimated tax capacity of the Target store and adjacent outlots
discussed in Section G of this Modification No. 12 will be $429,700 after
completion. The original tax capacity for the property involved is $9,900.
The estimated captured tax capacity is $419,800. Based upon current tax
capacity rates, the above captured tax capacity should produce a yearly
increment of approximately $480,000 after completion of the Target store. 1
S. ESTIMATE OF IMPACT ON OTHER TAXING JURISDICTIONS.
The composite tax capacity rate for the property is currently 114.349 1
percent. Applying the percentage of the total tax capacity rate attributable
to each taxing jurisdiction to the annual increment of $480,000 reveals the
annual "loss" of tax dollars by each jurisdiction if the Target project would
have occurred without TIF. Although the City and HRA believe the actual
impact on other taxing jurisdictions is zero because development would not
have occurred within the reasonably foreseeable future without public
intervention, the assumed amount of tax dollars foregone by each jurisdiction
is listed below:
ESTIMATED TAX INCREMENT ATTRIBUTABLE
TO VARIOUS TAXING JURISDICTIONS
TAX ESTIMATED '
TAXING CAPACITY TAX LOSS
JURISDICTION RATE ($)
City of Chanhassen 24.1 $ 101,164
Carver County 35.23 147,884 ,
Independent School District No. 112 51.604 216,617
Others 3.415 14,335 i
TOTAL 114.349 $ 480,000
T. ANNUAL REPORT REGARDING TIF.
1
Pursuant to section 469.175, subd. 6a of the TIF Act, the HRA must
report annually by March 1 to the Minnesota commissioner of revenue the
following amounts for the entire municipality:
1. the total principal amount of nondefeased tax increment financing 111 bonds that are outstanding at the end of the previous calendar
year; and
RH826558 1
CH130 -5 11
1
2. the total annual amount of principal and interest payments that
are due for the current calendar year on (i) general obligation
tax increment financing bonds, and (ii) other tax increment
financing bonds.
The HRA must also annually report to the commissioner of revenue the
' following amounts for the TIF district.
1. the type of district, whether economic development,
redevelopment, housing, soils condition, mined underground
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;
4. the tax increment revenues for taxes payable in the current
calendar year;
5. whether the tax increment plan or other governing document
permits increment revenues to be expended (i) to pay bonds, the
proceeds of which were or may be expended on activities located
outside of the district, (ii) for deposit into a common fund from
•
which money may be expended on activities located outside of the
district, or (iii) to otherwise finance activities located outside of
the tax increment district; and
6. any additional information that the commissioner of revenue may
require.
1
1
1
1
1
1
RH826558
CH130 -5 12
1
- - f 1 — ' • 7 * - • -- - :—/
4 - .. \ 0
.___
1 . ° \ ••, - (17 – i t i l . :I ,
7 ...... .
Ilk\
. . 1 1 111\ I I /
L
•
I !
• Nil ' \ •
.. fi • •
.. . g • N r /, I I g
• • 11! 5 i .: . i . ' ! ? II
(! I
z l I/ 1
- 0 . 8 '
i _ , U 1 k! c a 'a% PI
1 ( f » i i' o° 1
s / 'I ' LT 1 0
NZ_ ( - ; ' [ , __ ._1_
. i Fl – I -2.‘-'-Thf 1 I - I
N.. / . i Ai 1 ... .:_.- I
k„ kl ,O. !RI -,A ip
\ .. -..t, • f ,$ 11 )_ . A. 1 ' !I
. • g ' i W
'- .
• I goo , • y' ` �
. ri.„ ji l 5011 Iri tit I 1 z 1 It I I , ...# 4 Elli V7
1
I CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
1 RESOLUTION
1 Date Resolution No.
I Motion By Seconded By
RESOLUTION APPROVING MODIFICATION NO. 12 TO
I THE REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN
FOR THE CHANHASSEN DOWNTOWN REDEVELOPMENT PROJECT
I BE IT RESOLVED By the City Council (the Council) of the City of
Chanhassen, Minnesota (the City) as follows:
Section 1. Recitals.
I 1.01. The Housing and Redevelopment Authority in and for the City of
Chanhassen (Authority) and the City Council of the City of Chanhassen (City)
I approved a redevelopment project for the downtown Chanhassen area (Project) and
adopted a redevelopment plan and tax increment financing plan (Plan) for same on
November 29, 1977, and December 19, 1977, respectively.
1 1.02. Due to changes in the focus of the Plan and alterations in the
boundaries of the Project, the Plan has been the subject of eleven modifications since
its adoption in 1977.
I 1.03. Changes and additions to the public and private improvements to be
constructed in the Project has prompted the need for another modification to the
1 Plan.
1.04. In response to these changes, the Authority has authorized the
I preparation of a modified Plan, which is contained in a document entitled
"Redevelopment Plan and Tax Increment Financing Plan for Downtown Chanhassen
Redevelopment Area, City of Chanhassen Modification No. 12," dated December 14,
1992, and now on file with the city clerk.
I 1.05. In accordance with Minnesota Statutes, sections 469.174 through
469.179 (TIF Act), the modified Plan was referred to the Chanhassen planning
I commission which on , 1992, found that it conforms to and is not in
conflict with the general plan for redevelopment of the City as a whole.
1.06. The Authority on , 1992, approved the modified Plan for
the Project and referred it to the Council for public hearing and consideration as
provided by the TIF Act.
I 1.07. Copies of the modified Plan have been forwarded to Independent School
District No. 112 and Carver County along with a notice of a public hearing to be held
by the Council on December 14, 1992, as required by the TIF Act.
1 RIi1330634 1_4 - 2
C13130-5 4__ ,
��
1
1.08. The Council has fully reviewed the contents of the modified Plan and
has this date conducted a public hearing thereon at which the views of all interested
persons were heard.
Section 2. Findings Redevelopment Project.
2.01. It is hereby found and determined that within the Project there exist 111 conditions of economic obsolescence, physical deterioration, underutilization and
inappropriate uses of land.
2.02. It is further specifically found and determined that: 1
a. the land in the Project would not be made available for
redevelopment without the public intervention and financial
assistance described in the modified Plans;
b . the modified Redevelopment Plan for the Project will afford
maximum opportunity, consistent with the sound needs of the
City as a whole, for the redevelopment of the Project by private
enterprise;
c. the modified Redevelopment Plan conforms to the general
development plan of the City as set forth in the comprehensive
municipal plan. 1
2.03. The findings in this section are made in compliance with section
469.028, subdivision 2 of the Housing and Redevelopment Authorities Act for the
purpose of showing the City's intent to exercise, in conjunction with the Authority,
the powers granted to the City and the Authority by the Act.
Section 3. Findings; Tax Increment Financing District.
1
3.01. It is found and determined that it is necessary and desirable to the
sound and orderly development and redevelopment of the Project and the City as a
whole, and for the protection and preservation of the public health, safety, and
general welfare, that the authority of the TIF Act be exercised by the Authority and
the City to provide public financial assistance within the Project.
3.02. It is further found and determined, and it is the reasoned opinion of the
Authority and the City, that the redevelopment proposed in the modified Plan could
not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that therefore the use of tax increment financing
is necessary.
3.03. The modified Plan conforms to the general plan for redevelopment of the
City as a whole.
3.04. The proposed public improvements to be financed largely through tax
increment financing are necessary to permit the City to realize the full potential of
the Project in terms of development intensity, employment opportunities and tax
base. 1
1
88830634
08130 -5 2
1
1
1 3.05. The modified Plan will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the redevelopment of the Project by private
enterprise.
3.06. Nothing contained herein constitutes an election on the part of the
Authority or City to proceed with the Project under sections 469.174 through 469.178
of the TIF Act, except to the extent required by section 469.179.
Section 4. Adoption of Modification No. 12; Filing.
4.01. The modified Plan is hereby approved and adopted. The modified Plan
incorporates by reference the original Plan and all subsequent amendments thereto,
except as the modified Plan explicitly or by reasonably necessary implication
conflicts with the original Plan or any of the first eleven amendments thereto.
4.02. The geographic boundaries of neither the Project area nor the TIF
District are affected by this modification and are as described in the Plan, as
previously modified.
4.03. The Authority is requested to file a copy of the modified Plan with the
Minnesota commissioner of trade and economic development as required by the TIF
Act.
4.04. The City may at the appropriate time take action to issue and sell its
general obligation bonds pursuant to the TIF Act to finance public redevelopment
costs identified in the modified Plan.
1 4.05. The city clerk is authorized and directed to transmit a certified copy
of this resolution to the Authority.
1 DATED: , 1992
' Donald Chmiel, Mayor
ATTEST:
1
Donald Ashworth, City Clerk /Manager
YES NO ABSENT
1
1
RHB30634
1 CH130 -5 3
HOLMES & GRAVEN I
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
I
JOHN B. DEAN JAMES J. THOMSON, JR.
MARY G. DOBBINS LARRY M. WERTHEIM
STEFANIE N. GALEY BONNIE L WILK Ns
CORRINE A. HEINE GARY P. WINTER
JAMES S. HOLMES WRITER'S DIRECT DIAL DAVID L. GRAVEN (1929-1991)
DAVID J. KENNEDY 337 -9262
JOHN R. LARSON O F COUNSEL
WELLINGTON H. LAW ROBERT C. CARLSON
CHARLES L. LEFEVERE ROBERT L. DAVIDSON
November 20, 1992
Mr. Dick Stolz I
County Administrator
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
RE: Modification No. 12, City of Chanhassen Redevelopment Plan and TIF Plan
(Downtown Chanhassen Redevelopment Area)
1
Dear Mr. Stolz:
This is to notify Carver County that the City of Chanhassen will conduct a public I
hearing on Modification No. 12 of the Redevelopment Plan and TIF Plan for the
captioned Project at a city council meeting on Monday, December 14, 1992, at 7:30 I
p.m. in the city hall. A representative of the county is invited to attend the meeting
or you may send written comments to Mr. Don Ashworth, Chanhassen City
Administrator.
Enclosed is a draft copy of modification No. 12 of the Redevelopment Plan and TIF
Plan. Your attention is especially directed to Section P of the TIF Plan regarding
anticipated expenditures.
I
As you are aware, the county must be given 30 days notice of the public hearing or
waive that requirement by submitting written comments regarding the TIF Plan. The
City regrets that it was unable to give 30 days notice as is its usual practice in such
matters. Because of the need to adopt the Plan modification prior to the end of the
year and the fact that the Chanhassen city council will meet only once in December,
I the City requests that the county waive the statutory notice requirement by
submitting written comments prior to that date.
If you have any questions regarding the Plan, please feel free to call me at 337 -9262 I
or Mr. Ashworth at 937 -1900.
- -1y,
i
°PA S onald H. Batty
Special County to the
I
City of Chanhassen RECEIVE
RHB:ckr - - NOV 2 4 1992
. 7:' /
R>5845018 /// ; _�_ ; ` --/ CITY Ut t;hhivthASSEN
CH130 -5 1
I HOLMES & GRAVEN
CHARTERED
I 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
I STEPHEN J. BUBUL Facsimile (612) 337-9310 JAMES M. STROMMEN
JOHN B. DEAN JAMES J. THOMSON, JR.
MARY G. DOBBINS LARRY M. WERTHEIM
STEFANIE N. GALEY BONNIE L. WILKINS
CORRINE A. HEINE GARY P. WINTER
I JAMES S. HGLMES WRITER'S DIRECT DIAL DAVID L. GRAVEN (1929 -1991)
DAVID J. KENNEDY 337 -9262 oFCOUNSEI
JOHN R. LARSON
WELLINGTON H. LAW ROBERT C. CARLSON
I CHARLES L. LEFEVERE ROBERT L. DAVIDSON
November 20, 1992
1 Superintendent
Independent School District No. 112
1700 Chestnut Street
1 Chaska, MN 55318
RE: Modification No. 12, City of Chanhassen Redevelopment Plan and TIF Plan
1 (Downtown Chanhassen Redevelopment Area)
Dear Superintendent:
t This is to notify I. S.D. No . 112 that the City of Chanhassen will conduct a public
hearing on Modification No. 12 of the Redevelopment Plan and TIF Plan for the
captioned Project at a city council meeting on Monday, December 14, 1992, at 7:30
I p.m. in the city hall. A representative of the school district is invited to attend the
meeting or you may send written comments to Mr. Don Ashworth, Chanhassen City
Administrator.
1 Enclosed is a draft copy of modification No. 12 of the Redevelopment Plan and TIF
Plan. Your attention is especially directed to Section P of the TIF Plan regarding
I anticipated expenditures.
As you are aware, the school district must be given 30 days notice of the public
hearing or waive that requirement by submitting written comments regarding the TIF
I Plan. The City regrets that it was unable to give 30 days notice as is its usual
practice in such matters. Because of the need to adopt the Plan modification prior
to the end of the year and the fact that the Chanhassen city council will meet only
I once in December, the City requests that the school district waive the statutory
notice requirement by submitting written comments prior to that date.
If you have any questions regarding the Plan, please feel free to call me at 337 -9262
I or Mr. Ashworth at 937 -1900.
Sin rely,
1 `,A;.
nald H. Ba y
I Special County to the
City of Chanhassen
RHB : ckr
i
112133450113
1 CH130 -5