2. TIF, Modification No. 10 ca
CITYOF --
II
CHANHASSEN
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:' 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
I k (612) 937-1900 • FAX (612) 937-5739
Action by rity !.4-.0nIrtor
E�r T '..A/ ?'
IMEMORANDUM ticdA J—__ .___�T —
Re) e'er
TO: Don Ashworth, City Manager D t -/ .��Q-
IFROM: Todd Gerhardt, Assistant City Manager TG/k.
Dete St' ..... .a ncti
' DATE: April 19, 1990 ii-- s _9p
SUBJ: Public Hearing to Consider Amendment to the
Redevelopment Plan and Tax Increment District
IFinancing Plan, Modification No. 10
I As you are aware, at the April 18, 1990 Planning Commission
meeting, some concern was expressed regarding the proposed Hardee's
Restaurant (West 79th Street redevelopment) . It is my
I understanding that the Planning Commission was concerned about the
language used to describe this project and how it could potentially
bind future Planning Commissions/City Councils in approving a
Hardee's Restaurant. To modify the Planning Commission's concerns,
I staff is suggesting the following changes to define the proposed
projects be inserted on page 4:
I a. West Chanhassen Shopping Center. This is a large
shopping center which is to be constructed by a major
developer on the south side of West 78th Street between
I - Monterey Drive and County Road 17. It is proposed to
include two large retail anchors of approximately 130, 000
and 50, 000 square feet plus ancillary retail space of
80,000 square feet. The entire center will consist of
Iapproximately 260,000 square feet of retail floor area.
b. Redmond Products. This project will comprise
I approximately 370,000 square feet of computerized
warehouse space. It is proposed to be constructed at the
northeast corner of Lake Drive and Audubon Road.
Ic. Retail Space/Amoco/Car Valley Red-E-Mix. This
project will entail the construction of a new retail
space and the redevelopment of an existing Amoco station
I and car wash at the northeast corner of Highway 5 and
Great Plains Boulevard. The retail space will have
approximately 4,500 square feet and Amoco 1,000 square
Ifeet plus a 750 square foot drive-thru car wash. The
I
Mr. Don Ashworth
April 19, 1990
Page 2
existing car wash will be razed and replaced with a approximate
3,600 square foot facility plus 1,500 square feet of storage. The
' project also includes remodeling of the existing Hanus building and
acquisition and demolition of the Apple Valley Red-E-Mix plant.
' These proposed changes describe the projects in a general form and
would not lock each of the projects into a specific square footage
or use.
' The revenues generated from each of these projects would be used to
pay capital improvement and administrative costs in developing each
project (see page 7 for the outline of the proposed costs) .
' As you are also aware, the Minnesota State House of Representatives
is not looking favorably to the pre-1979 tax increment districts
(which this district is) . Approval of Modification No. 10 is
' crucial if the City Council/HRA would like to see the proposed
projects move ahead.
' Under state statute, the HRA must go through a three step process
to modify a tax increment district. The steps are as follows:
' 1. The Planning Commission must find the proposed plan
modification is consistent with the City's Comprehensive Plan
and zoning regulations.
Action: The Planning Commission approved Modification No. 10
to the plan on April 18, 1990.
' 2. The Housing and Redevelopment Authority must notify the county
and school district of the public hearing date and submit the
proposed plan modification for their review and comment.
' Action: Letters have been sent to both the school district
and the county stating that the public hearing has been set
for April 23, 1990 (see Attachment 3) .
' 3. The HRA must also approve the plan modification and request
the City Council to hold a public hearing and approve the plan
' modification.
Action: The HRA is expected to approve Modification No. 10 at
their April 19, 1990 meeting. Staff will update the Council
' on Monday evening as to the HRA's action.
Recommendation
' To fulfill the last step, the HRA is requesting the City Council to
adopt a resolution approving Modification No. 10 to the
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Mr. Don Ashworth 11
April 19, 1990
Page 3 '
Redevelopment Plan and Tax Increment Financing Plan for the
Chanhassen Downtown Redevelopment Project. '
Attachments
1. Plan Modification No. 10 '
2. Resolution
3. Letters to Carver County and School District 112 ,
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ITAX INCREMENT FINANCING PLAN
FOR
IDOWNTOWN CHANHASSEN REDEVELOPMENT AREA
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ICITY OF CHANHASSEN
MODIFICATION NO. 10
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APRIL 23, 1990
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IPrepared By:
HOLMES & GRAVEN, CHARTERED
470 Pillsbury Center
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Minneapolis, Minnesota 55402
AND
IHOISINGTON GROUP, INC.
7300 Metro Boulevard
IEdina, Minnesota 55435
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Table of Contents
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Page
Tax Increment Financing Plan
Subsection A. Definitions 1 I
Subsection B. Statutory Authority 2
Subsection C. Statement of Objectives 2
Subsection D. Statement of Public Purpose 2
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Subsection E. Relation to Redevelopment Plan 3
Subsection F. Boundaries of TIF District 3
Subsection G. Description of Downtown Redevelopment Area 3
Subsection H. Development and Assessment Agreements 3
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Subsection I. History and Classification of TIF District 4
Subsection J. Modification of TIF Plan 4
Subsection K. Use of Tax Increment 5 I
Subsection L. Excess Tax Increment 5
Subsection M. Duration and Modification of the TIF District 5
Subsection N. Relocation 5
Subsection O. Properties to be Acquired within TIF District 5
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Subsection P. Public Improvement Plans 6
Subsection Q. Estimate of Project Costs 6
Subsection R. Original Tax Capacity 7
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Subsection S. Estimate of Captured Tax Capacity
and Tax Increment 8
Subsection T. Estimates of Impact on Other Taxing Jurisdictions 8
Subsection U. Annual Report Regarding TIF 9
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ITAX INCREMENT FINANCING PLAN
IA. Definitions
For the purposes of the Tax Increment Financing Plan, the following terms
Ishall have the meanings specified below, unless the context otherwise requires:
"City" means the City of Chanhassen, a municipal corporation under the
laws of the state of Minnesota;
I "Comprehensive Plan" means the City's Comprehensive Plan, including the
objectives, policies, standards and programs to guide public and private land use,
I development, redevelopment and preservation for all lands and water within the
City;
I "City Council" or "Council" means the Chanhassen City Council;
"County" means Carver County, Minnesota;
I "HRA Act" means Minnesota Statutes Sections 469.001 through 469.047;
"Housing and Redevelopment Authority" or "HRA" means the Housing and
I Redevelopment Authority in and for the City of Chanhassen, Minnesota, created
pursuant to Minnesota Statutes Sections 469.001 through 469.047;
I "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
I established by the City on December 19, 1977, in downtown Chanhassen and
expanded on December 18, 1978, to include the Chanhassen Lakes business park
south of T.H. 5, pursuant to Minnesota Statutes Sections 469.001 through 469.047;
I "State" means the State of Minnesota;
"Tax Increment Bonds" means any general obligation or revenue tax
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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;
I "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes
Sections 469.174 through 469.179, inclusive, as amended; and
I "Tax Increment Financing District" means the tax increment financing
district established within the downtown redevelopment area and the Chanhassen
Lakes business park area;
I "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. This marks the tenth formal modification of the
TIF Plan.
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B. STATUTORY AUTHORITY
Pursuant to the HRA Act, the City on December 19, 1977 created the ,
Project in the downtown portion of the City 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 that time by the HRA Act. Due to changed
circumstances and new development opportunities, it is now
appropriate for the HRA and City to amend the TIF Plan.
Accordingly, the City and HRA now wish to adopt a modified TIF
Plan which accurately reflects the current financial plan for the
Project, with particular emphasis on downtown Chanhassen.
However, adoption of an updated 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.
C. 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; 1
2. Improve the tax base of the City and the general economy of
the City and State;
3. Encourage redevelopment of downtown Chanhassen which is an
area that 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 1
of constructing needed public improvements and promoting
redevelopment; and
6. Implement a program of special assessment reductions for
properties within the downtown area whose market values
have increased due to new construction since the creation of '
the TIF District.
D. STATEMENT OF PUBLIC PURPOSE '
In adopting the modified TIF Plan and administering the Project, the
HRA and City have made the following findings:
1. Redevelopment of the Project would not reasonable be
expected to occur solely through private investment within the
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reasonably foreseeable future and, therefore, the use of TIF is
deemed necessary;
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2. The Redevelopment and TIF Plans will afford maximum
opportunity, consistent with the sound needs of the City as a
I whole, for development of the Project by private enterprise;
and
I 3. The Redevelopment and TIF Plans conform to general plans
for the development of the City as a whole.
E. RELATION TO REDEVELOPMENT PLAN
IThe City authorized the Project on December 19, 1977, and modified
its boundaries on December 18, 1978. Additional land was included
I within the Project Area with the adoption of modification No. 7 in
1987. This modification No. 10 will describe development activities
planned or authorized within the Project since the adoption of
I Modification No. 9 in November, 1989. A map of the Project area is
included in Figure 1.
F. BOUNDARIES OF TIF DISTRICT
IBoundaries of the TIF District were shown on Figure 1 of
modification No. 9. The TIF District includes property in both the
I downtown area and Chanhassen Lakes business park. 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 was not changed as a result of
modification No. 9 nor will it be changed as a result of this
modification No. 10.
IG. DESCRIPTION OF DOWNTOWN REDEVELOPMENT AREA
I 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
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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
I improved significantly in recent years, the downtown redevelopment
area is still characterized by the underutilization of land.
IH. DEVELOPMENT AND ASSESSMENT AGREEMENTS
Historically, the HRA has negotiated agreements with developers
seeking to develop land within the downtown redevelopment area.
I The projects which are the subject of current or upcoming
negotiation include the following:
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a) West Chanhassen Shopping Center. This is a large shopping
center which is to be constructed by a major developer on the
south side of West 78th Street between Monterey Drive and
County Road 17. It is proposed to include two large retail
gQProxlvt&-Vcy . anchors of4130,000 and 50,000 square feet plus ancillary retail '
space of 80,000 square feet. The entire center will consist of
approximately 260,000 square feet of retail floor area. 4e
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b) Redmond Products. This project will comprise4370,000 square A1Y I
feet of computerized warehouse space. It is proposed to be
constructed at the northeast corner of Lake Drive and
Audubon Road.
Rck.I Space.
c) Heepilees/Amoco/Car Wash/Apple Valley Ready Mix. This
project will entail the construction of a new A!Iardees
restaurant and the redevelopment of an existing Amoco
station and car wash at the northeast corner of Highway 5 and
Great Plains Boulevard. AiisedssI,kwill have approximately ec-k.I 5 fAc
4,500 square feet and Amoco 1,000 square feet plus a 750
square foot drive through car wash. The existing car wash will
be razed and replaced with x3,600 square foot facility plus awro*„„{cly
1,500 square feet of storage. The project also includes
remodeling of the existing Hanus Building and acquisition and
demolition of the Apple Valley Ready Mix plant.
d) Old Bank. This will entail the acquisition of the old '
Chanhassen State Bank building which is now used for other
purposes, demolition of the existing building and preparation
of the site for another use.
e) Business Park Lots. Land writedowns are intended to
stimulate the development of two lots within the Chanhassen
Business Park. A third lot will entail a land writedown to
accommodate the relocation of the existing building at the end
of Monterey Drive.
HISTORY AND CLASSIFICATION OF TIF DISTRICT
The TIF District was established by the HRA and City in late 1977 '
and contained approximately 175 acres centered on what is now
known as the downtown redevelopment area. THe TIF District was
expanded the following year with the inclusion of approximately 455 '
acres in the area south of Highway 5 known as the Chanhassen Lakes
business park. For purposes of classification, the TIF District is a
pre-1979 TIF District and the HRA and City intend to retain that
designation except as required by Section 469.179 of the TIF Act.
J. MODIFICATION OF TIF PLAN
This modification marks the tenth formal modification of the TIF ,
Plan. The TIF Plan may be modified again in the future by the HRA
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and City as changing conditions warrant. Any reduction of
I geographic area of the TIF District, increase in amount of bonded
indebtedness to be incurred, increase in the portion of the captured
assessed value to be retained by the HRA or designation of additional
property to be acquired by the HRA shall be approved upon
Iappropriate notice and hearing by the HRA and City.
K. USE OF TAX INCREMENT
IAll revenues derived from the TIF District shall be used in
accordance with the current modified TIF Plan. The revenues shall
I be used to finance or otherwise pay the capital and administrative
costs of development activities within the Project as identified in the
TIF Plan.
IL. EXCESS TAX INCREMENT
In any year in which the increment exceeds the amount necessary to
I pay the costs authorized by the TIF Plan, the HRA shall use the
excess amount to do any of the following, in the order determined by
the HRA:
I1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment therefore;
I3. Pay into an escrow account to the county auditor who shall
distribute the excess amount to the City, the County and the
I school district in direct proportion to their respective tax
capacity rates.
In addition, the HRA and City may choose to modify the TIF Plan
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again in order to provide for public improvements or other
development costs within the Project.
IM. DURATION AND MODIFICATION OF THE TIF DISTRICT
The geographic area of the TIF District may be reduced but it cannot
I 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.
IN. RELOCATION
I The HRA accepts as binding its obligations under Minnesota Statute,
Sections 117.50 through 117.56 for relocation and will administer
relocation services for families, individuals and businesses displaced
Iby public action.
O. PROPERTIES TO BE ACQUIRED WITHIN THE TIF DISTRICT
I In addition to those properties identified for acquisition in previous
modifications, several parcels within the downtown redevelopment
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area will be acquired for construction of public improvements or for
conveyance to developers at a reduced cost. Figure 2 shows all
properties which have been or will be acquired within the Project as a
result of actions described or authorized by the modified and TIF
Plan.
P. PUBLIC IMPROVEMENTS PLANS
Substantial public improvements have been undertaken during the last
several years within the Project. Additional improvements are
contemplated at the present time or in the near future and were
depicted on Figure 6 in modification No. 9.
Q. ESTIMATE OF PROJECT COSTS
Table 1 of modification No. 9 was a summary of the costs which have
been incurred by the HRA to support development activities within
the Project, including costs incurred since the adoption of
modification No. 7 in 1987. 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. 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 HRA receives the first full year's increment, or such other
three year period as may be agreed upon by the HRA 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 HRA.
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1 The HRA has also participated in a loan program with the developers
of the Heritage Park housing site within the downtown redevelopment
I area. Under the program, assistance was made available through tax
increment revenue during the early years of the project. When the
project begins to generate additional revenue, the developer will
I repay the HRA for its earlier assistance. Repaid funds will be
available to the HRA for other project costs in the future.
Certain expenditures within the Project were funded through general
I tax increment revenues available to the District. Acquisition of
several properties were financed in this manner rather than through
discrete bond sales because of the length of time generally necessary
I to acquire property within the Project through negotiation or
condemnation. In some instances, administrative expenses were
incurred and paid by the HRA in connection with such acquisitions
I which could have been accounted for in a bond sale. Administrative
costs for the years 1987 through 1989 were documented by the HRA,
but were not among the costs paid for by bonds authorized by
modification No. 9. Administrative costs in the operating budget of
I the HRA include costs which could have been and typically are among
those paid for out of bond proceeds.
I In addition to project costs outlined in previous modifications, the
following are costs anticipated for upcoming projects:
Land Acquisition
$6,710,000
Site Improvements 200,000
Demolition 200,000
I Public Improvements
Library 900,000
Court Yard 100,000
I Engineering and Contingency 1,271,250
Administration 500,000
iTOTAL $9,881,250
R. ORIGINAL TAX CAPACITY.
IChanhassen's tax increment district has been highly successful in
meeting the goals and objectives outlined in this Plan. Over one
I million square feet of industrial/office space currently exists with
new construction anticipated to produce nearly two million square
feet of commercial/industrial space. The current total tax capacity
of the Tax Increment District is $2,221,929 with a base tax capacity
I of $150,972. Estimates show taxes to be generated from Rosemount
at $823,000 per year and Empak at $183,000. Modification No. 9
contained additional details regarding the values of anticipated
I development and all such estimates are hereby incorporated by
reference to this modification No. 10.
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S. ESTIMATE OF CAPTURED TAX CAPACITY AND TAX INCREMENT
Modification No. 9 contained an estimate of the captured tax I
capacity generated by new projects discussed in that modification.
With regard to the projects discussed in Section H of this
modification No. 10, the estimated tax capacity is $1,352,000 after
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completion of the projects. The aggregate original tax capacities for
the properties involved is $3,000. The estimated captured tax
capacity is $1,349,000.
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Based upon current tax capacity rates, the above captured tax
capacity should produce a yearly increment of approximately
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$1,351,415 after completion of all projects.
T. ESTIMATE OF IMPACT ON OTHER TAXING JURISDICTIONS
. With regard to the new projects outlined in this modification No. 10, 1
it is anticipated that $1,351,415 in increment will be captured
annually. This increment amount is based on the value of the I
projects after completion. For the purpose of estimating increment,
no inflation has been assumed in the value of the new development.
The composite tax capacity rate for the new property is currently
I100.179 percent. Applying the percentage of the total tax capacity
rate attributable to each taxing jurisdiction to the annual increment
of $1,351,415 reveals the annual "loss" of tax dollars by each
jurisdiction if the projects would have occurred without TIF.
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Although the City and HRA believe the actual impact on other taxing
jurisdictions is zero because development would not have occurred
within the reasonably foreseeable future without public intervention, I
the assumed amount of tax dollars foregone by each jurisdiction is
listed below:
PERCENT OF TAX INCREMENT ATTRIBUTABLE
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TO VARIOUS TAXING JURISDICTIONS
TAX ESTIMATED I
TAXING CAPACITY TAX LOSS
JURISDICTION RATE ($)
City of Chanhassen 21.124 $ 284,878
Carver County 30.077 405,695
Independent School District No. 112 46.052 621,110 I
Others 2.926 39,461
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TOTAL 100.179 $1,351,415
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U. ANNUAL REPORT REGARDING TIF
' Pursuant to Section 469.175, Subd. 6a of the TIF Act, the HRA must
report annually by March 1 to the Minnesota commissioner of revenue
the following amounts for the entire municipality:
' 1. the total principal amount of nondefeased tax increment
financing bonds that are outstanding at the end of the previous
calendar year; and
2. the total annual amount of principal and interest payments
that are due for the current calendar year on (i) general
' obligation tax increment financing bonds, and (ii) other tax
increment financing bonds.
The HRA must also annually report to the commissioner of revenue
the following amounts for the TIF district.
1. the type of district, whether economic development,
' redevelopment, housing, soils condition, mined underground
space, or hazardous substance site;
' 2. the date on which the district is required to be decertified;
3. the captured net tax capacity of the district, by property class
' as specified by the commissioner of revenue, for taxes payable
in the current calendar year;
4. the tax increment revenues for taxes payable in the current
' calendar year;
5. whether the tax increment 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.
CH130-005(2)
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I I *
FIGURE 2
LEGEND:
-- PROJECT AREA BOUNDARY DOWNTOWN
REDEVELOPMENT
PLAN
scaLe
, PUBLIC IMPROVEMENT
----
PROPERTY N
. REDEVELOPMENT TAX INCREMENT DISTRICT
ACQUISITION
HoisIngton Group Inc.
CHANHASSEN,MINNESOTA
MARCH 1590
APR 19 '90 13.04 HOLMES & GRAVEN P.2
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C1Tt OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date Resolution No.
Motion By Seconded By
RESOLUTION APPROVING MODIFICATION NO. 10 TO -
THE TAX INCREMENT FINANCING FLAN FOR THE
CHAANRASSEN DOWNTOWN REDEVELOPMENT PROJECT i
BE IT RESOLVED By the City Council of the City of Chanhassen, Minnesota
as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of
Chanhassen (Authority) and the City Council of the City of Chanhassen (City)
approved a redevelopment projr.,ry Zr o 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 nine modifications since
its adoption in 1977.
1.03. Changes in the nature of the public and private improvements to be
constructed in the Project has prompted another modification to the Plan.
1.04. In response to these changes, the Authority has authorized the
preparation of a modified Plan, which is contained in a document entitled "Tax 1
Increment Financing Plan for Downtown Chanhassen Redevelopment Area, City of
Chanhassen Modification No. 10," dated April 23, 1990, and now on file with the
city clerk. I
1.05. In accordance with the Minnesota Statutues Section 469.174 through
469.179 (TIF Act), the modified Plan was referred to the Chanhassen planning
commission which on April 18, 1990, 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 April 19, 1990, approved the modified Plan for the
Project and referred it to the city council for public hearing and consideration as
provided by the TIF Act. •
11 APR 19 '90 13:04 HOLMES & GRAVEN P.3
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1.07. Copies of the modified Plan has been forwarded to Independent School
' District No. 112 and Carver County along with a notice of a public hearing to be
held by the City as required by the TIP Act.
1.05. This 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; Tax Increment Financing District.
2.01.' 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, and the authority of the TIP Act be exercised by the Authority
' and the City to provide public financial assistance within the Project.
2.03. 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.
2.03. The modified Plan conforms to the general plan for redevelopment of
the City as a whole.
' 2.04. 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.
2.05. 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.
' 2.06. 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 3. Plan Adoption: Filing.
3.01.' The modified Plan is hereby approved and adopted. Said 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 nine amendments thereto.
3.02. The geographic boundaries of the Project and the TIP District are not
affected by this modification and are as described in the modified Plan, which
document is hereby adopted by reference.
' 3.03. 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.
2
APR 19 '90 13:05 HOLhES & GRAVEN P.4
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3.04. The City may at the appropriate time take action to issue and sell its
general obligation bonds pursuant to the TIP Act to finance public redevelopment
costs identified in the modified Plan.
3.00. The city clerk is authorized and directed to transmit a certified copy 1
of this resolution to the Authority.
Passed this 23rd day of April, 1990, by the City Council of the City of ,
Chanhassen, Minnesota.
Donald J. Chmiel, Mayor '
ATTEST:
Donald Ashworth, City Clerk/Manager
CH130-00S e
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HOLMES & GRAVEN
CHARTERED `MAR 2 6 1993
1 Attorneys at Law 470 Pillsbury Center,Minneapolis,Minnesota 55402 CITY OF CHANHASSEN
IROBERT A.ALSOP (612)337-9300 DAVID J.KENNEDY
PALL D.BAERTSCHI Facsimile(612)337-9310 JOHN R.CARSON
RONALD H.BATTY" WELLINGTON H.LAW
MARY J.BRENDEN JULIE A.LAWLER
STEPHEN J.BLBUI. CHARLES L.LEFEVERE
ROBERT C.CARLSON JOHN M.LEFEVRE.JR.
ICHRISTINE M.CHAI.E ROBERT J.LINDALL
ROBERT L.DAVIDSON WRITER'S DIRECT DIAL LAURA K.MOI.LET
JOHN B.DEAN DANIEL R.NELSON
ROBERT J.DEIKE 337-9262 BARBARA L.PORTWOOD
MARY G.DOBBINS
JEFFREY ENG MARY"FRANCES SKAI.A
STEFANIE N.GALES' JAMES M.STROMMEN
DAVID L.GRAVEN STEVEN M.TALLEN
CORRINE A.HEINE JAMES J.THOMSON,JR.
JOHN G.HOESCHLER LARRY M.WERTHEIM
' JAMES S.HOLMES BONNIE L.WILKINS
March 23, 1990
I
I Mr. Dick Stolz
County Administrator
Carver County Courthouse
600 East Fourth Street
I
Chaska, MN 55318
Re: Modification No. 10, City of Chanhassen Redevelopment Plan and TIF Plan
1 (Downtown Chanhassen Redevelopment Area)
Dear Mr. Stolz:
IThis is to notify Carver County that the City of Chanhassen will conduct a public
hearing on the modificiation No. 10 of the Redevelopment Plan and TIF Plan for the
I captioned Project at the regular City Council meeting on April 23, 1990, at 7:30
p.m. in the City Hall. A representative of the County is invited to attend the
meeting or you may send written comments to Don Ashworth, Chanhassen City
Administrator.
IEnclosed is a draft copy of modification No. 10 of the Redevelopment Plan and TIF
Plan. If you have any questions regarding the Plan, please feel free to call me at
1 337-9262 or Mr. Ashworth at 937-1900.
S'ncerely,
TudJ' " - r
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Ronald H. Batty
I Special Counsel to the
City of Chanhassen
RHB:rsr
Enclosure
CH130-005
I
I /4Atineal 414,3
I
HOLMES & GRAVEN
CHARTERED
Attorneys at Law 470 Pillsbury Center,Minneapolis,Minnesota 55402
ROBERT A.ALSOP (612)337-9300 DAVID J.KENNEDY
PAUL D.BAERTSCHI Facsimile(612)337-9310 JOHN R.LARSON
RONALD H.BATTY WELLINGTON H.LAW
MARY J.BRENDEN JULIE A.LAWLER
STEPHEN J.Bt Bl L CHARLES L.LEFEVERE
ROBERT C.CARLSON JOHN M.LEFEVRE,JR.
CHRISTINE M.CHAI.E ROBERT J.LINDALL
ROBERT L.DAVIDSON WRITER'S DIRECT DIAL
JOHN B.DEAN DAE K. NELI.ET LSON
ROBERT J.DEIKE 337-9262 BARBARA L.PORTWOOD
MARY G.DOBBINS
JEFFREY ENG MARY FRANCES SKALA
JEFFREY E N.DALES' JAMES M.STROMMEN
DAVID L.GRAVEN STEVEN M.TALLEN
CORRINE A.HEINE JAMES J.THOMSON,JR.
JOHN G.HOESCHLER LARRY M.WERTHEIM
JAMES S.HOLMES BONNIE L.WILKINS
March 23, 1990 ,
Superintendent I
Independent School District No. 112
1700 Chestnut Street
Chaska, MN 55318 1
Re: Modification No. 10, City of Chanhassen Redevelopment Plan and TIF Plan
(Downtown Chanhassen Redevelopment Area)
Dear Superintendent:
This is to notify the School District that the City of Chanhassen will conduct a 1
public hearing on the modificiation No. 10 of the Redevelopment Plan and TIF Plan
for the captioned Project at the regular City Council meeting on April 23, 1990, at
7:30 p.m. in the City Hall. A representative of the School District is invited to '
attend the meeting or you may send written comments to Don Ashworth,
Chanhassen City Administrator.
Enclosed is a draft copy of modification No. 10 of the Redevelopment Plan and TIF '
Plan. If you have any questions regarding the Plan, please feel free to call me at
337-9262 or Mr. Ashworth at 937-1900.
erely,
/ I CWY y
Ronald H. Batty
Special Counsel to the
City of Chanhassen '
RHB:rsr
Enclosure I
CH130-005
i