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2. TIF, Modification No. 10 ca CITYOF -- II CHANHASSEN 1 ... 4 p , :' 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 I 1 I 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 , 1 1 1 I I I I I I I ITAX INCREMENT FINANCING PLAN FOR IDOWNTOWN CHANHASSEN REDEVELOPMENT AREA I ICITY OF CHANHASSEN MODIFICATION NO. 10 I APRIL 23, 1990 I I I IPrepared By: HOLMES & GRAVEN, CHARTERED 470 Pillsbury Center I Minneapolis, Minnesota 55402 AND IHOISINGTON GROUP, INC. 7300 Metro Boulevard IEdina, Minnesota 55435 I 1 Table of Contents I 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 I 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 I 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 I Subsection P. Public Improvement Plans 6 Subsection Q. Estimate of Project Costs 6 Subsection R. Original Tax Capacity 7 I 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 I I I I 1 I I I 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 I 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. I I I 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 2 I I reasonably foreseeable future and, therefore, the use of TIF is deemed necessary; I 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 I 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: I 3 I 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 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 . . . • • . . . 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 4 I I 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 I 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 1 5 I I 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. 6 I 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. I 7 I I 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 I 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. I Based upon current tax capacity rates, the above captured tax capacity should produce a yearly increment of approximately I $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 $1,351,415 reveals the annual "loss" of tax dollars by each jurisdiction if the projects would have occurred without TIF. I Although the City and HRA believe the actual impact on other taxing jurisdictions is zero because development would not have occurred within the reasonably foreseeable future without public intervention, I the assumed amount of tax dollars foregone by each jurisdiction is listed below: PERCENT OF TAX INCREMENT ATTRIBUTABLE I TO VARIOUS TAXING JURISDICTIONS TAX ESTIMATED I TAXING CAPACITY TAX LOSS JURISDICTION RATE ($) 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 1 TOTAL 100.179 $1,351,415 I I 8 1 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) 9 1 I,__ \ `,__ I _ "rH- 1T_YP ', 1! ' 4 --I I 4 ) /'-'-'.. - -If-:3 - ....._: ,/ ) iF-71 . [---0-1_1 [-.. 1_ .1111 .'-r-:.. .. , ./1- ( , , _o_. __________]r;:?:b;',1]Latt-i-4.- Li_Int-----1-frin' I aL-1-..Li-L;21_:Ili --1. .. 7,/,7 lii ilil 11.lil 11 Arial l ` `\ `__.--i_^-� .____� -zT- s-.I _ _ MAN NO.111 _ wcsr rsm sr ____ .-Ws+rss s -- ---- 1 �1��_j �-1 : 7 r ,� A • a •• I k/ ---I --( 1 1 1 / "').. ' '- - ,' "' - or-i):5-F___ • .,' v J-- i �;__ s _ ,� �•n S? . 40 .. ' so • -�__-�—_ ni no\ __ "'�7,. _ ..., --\' ‘,$\\__ __ ,-- -- - 'N‘ i —)i 1 \ CNHASSEN� SINESS PA••K OP. rr. ' S1 \ /I[1 :7--- -- \......_ \_____/:+CV !.---1.0) • or IN -d . \ - /17-'Z'A , i '\ / e " I / LAKE SUSAN ? �' , FIGURE I 3 -- LEGEND I 1 i-- jI CHANHASSEN --- PROJECT AREA BOUNDARY DOWNTOWN PROJECT AREA TAX INCREMENT DISTRICT }��MILE 99. n REDEVELOPMENT APLAN fr" Co Z ,_, CA C0 HolsIngton Group Inc 1-. 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CHANHASSEN,MINNESOTA MARCH 1590 APR 19 '90 13.04 HOLMES & GRAVEN P.2 • I 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 x 1 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 • qr I 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 • 1 1 1 1 1 I I 3 1 II . .._d __ _.:.1 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 i 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