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2. Modification to Dev Dist 1 and TIF No. 2 liql‘r- .. . CITY OF c2. -i, i CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 I (612) 937-1900 • FAX (612) 937-5739 q ion by Ci Aa. ; , `Y m nis ratot Endcrsc -,_.Y 1)44)/4 IMEMORANDUM Rejectc TO: Don Ashworth, City Manager Date Subnit c� to c:, L;on IFROM: Todd Gerhardt, Assistant City Manager ' ------- Date 5..,:r..-;e;: t;. Lu!.e„ IDATE: March 8, 1990 3_i -90 SUBJ: Public Hearing for Modification to Development District No. II1 and TIF District No. 2 The City Council, at their January 22, 1990 meeting, established II March 12, 1990 as the public hearing date to receive public comments regarding the proposed plan modifications. The proposed modifications deal specifically with the reconstruction of Highways II 5 and 101 interchange and adopting the 1989 special legislation action. The money to be spent on this project would consist of land acquisition, public improvements construction and administrative costs. Notices have been sent to both Hennepin II County and the Chaska School District for their review and comments. II Under state statute the City Council must hold a public hearing to receive public comment and review the proposed changes. Staff has reviewed the proposed changes with the Planning Commission to I insure that the modification is consistent with the City's Comprehensive Plan. The Planning Commission unanimously approved the development program at their March 7, 1990 meeting. I Attached please find a resolution adopting the modified development program for Development District No. 1 and a Modified Tax Increment Financing Plan for Tax Increment District No. 2 for the Council's II consideration. It should also be noted that the efforts of Senator Schmitz, Representative Kelso and the Hennepin County Commissioners played an important role in the adoption of the special legislation IIto extend Development District No. 1 through 1992. RECOMMENDATION I Staff recommends approval of the resolution modifying the Development Program for Development District No. 1 and Tax Increment Financing District No. 2. II II 1 1 1 1 1 r r i 4114Plir i Mr. Don Ashworth March 8, 1990 Page 2 ATTACHMENTS ' 1. Proposed Plan Modification 2. Resolution Adopting Plan Modifications i i 1 1 1 1 i 1 1 1 1 1 1 1 1 1 MODIFIED DEVELOPMENT PROGRAM ' DEVELOPMENT DISTRICT NO. 1 ' and MODIFIED TAX INCREMENT FINANCING PLAN, TAX INCREMENT FINANCING DISTRICT NO. 2 1 i CITY OF CHANHASSEN, MINNESOTA March 12, 1990 I Prepared by: Holmes & Graven, Chartered , 470 Pillsbury Center Minneapolis, MN 55402 (612)337-9262 I II Table of Contents II Page Section I. Modified Development Program for Development IIDistrict No. 1 Subsection A. Definitions 1 Subsection B. Statutory Authority 2 I Subsection C. Statement of -Objectives 2 Subsection D. Environmental Controls 3 Subsection E. Open Space to be Created 4 II Subsection F. Public Facilities to be Constructed . 4 Subsection G. Proposed Reuse of Property 4 Subsection H. Development District Financing 4 II Subsection I . Administration of Development District4 Subsection J. Rehabilitation 5 Subsection K. Description of Development District . 5 I Section II. Modified Tax Increment Financing Plan for Tax Increment Financing District No. 2 II Subsection A. Statutory Authority 6 Subsection B. Statement of Objectives 6 Subsection C. Statement of Public Purpose 6 II Subsection D. Development District Program 7 Subsection E. Description of TIF District 7 Subsection F. Development District Contracts 7 Subsection G. Classification of TIF District 7 II Subsection H. Modification of TIF Plan 7 Subsection I . Use of Tax Increment 7 Subsection J. Excess Tax Increment 8 I Subsection K. Limitation on Increment 8 Subsection L. Limitation on Administrative Expenses 8 Subsection M. Limitation on Boundary Changes 8 Subsection N. Relocation 9 I Subsection O. Parcels to be Acquired within TIF District 9 Subsection P. TIF Account 9 II Subsection Q. Estimate of Costs 9 Subsection R. Estimate of Bonded Indebtedness . . . 9 Subsection S. Original Assessed Value 9 I Subsection T. Estimate of Captured Assessed Value . 10 Subsection U. Duration of TIF District 10 Subsection V. Alternate Estimates of Impact on Other Taxing Jurisdictions 10 IISubsection W. Annual Financial Report 11 I II 1 r SECTION I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT 1 DISTRICT NO. 1 A. Definitions , For the purposes of the modified Development District Program and modified Tax Increment Financing Plan, the following terms shall have the meanings specified below, unless the context otherwise requires: "City" means the City of Chanhassen, a municipal corporation under the laws of the state of Minnesota; "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; "City Development District Act" or "Act" means Minnesota Statutes, Sections 469. 124 through 469 .134, as amended; , "County" means Hennepin County or Carver County, Minnesota; "Development i District" means Development District No. 1 which was established on December 15,1980, pursuant to and in accordance with the City Development District Act, and which was expanded on September 21, 1987; "Development Program" or "Program" means the Development Program for Development District No. 1, which adopted by the Council on December 15, 1980, which was modified on August 3, 1981, on September 21, 1987 and which is hereby being modified again; "Project Area" or "Project" means the property within Development District No. 1, as described in the Development ' Program; "State" means the State of Minnesota; I "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued by the City to finance the public costs associated with Development District No. 1 as stated in the modified Program and in the Plan for Tax Increment Financing District No. 2 within Development District No. 1 or any obligations issued to refund the Tax Increment Bonds; 1 t I "Tax Increment Financing District" means Tax Increment ' Financing District No. 2, which was established on December 15 ,1980, pursuant to and in accordance with the TIF Act and which was expanded on August 3, 1981; ' "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, Sections 469.174 through 469. 179, inclusive, as amend- ed; and "Tax Increment Financing Plan" or "Plan" means the modified TIF Plan for TIF District No. 2 which was originally adopted by ' the Council on December 15, 1980, which was modified on August 3 , 1981, and on September 21, 1987, and which is hereby being modified again. B. Statutory Authority The City has determined that it is necessary, desirable and in the public interest to establish, designate, develop and administer a Development Program for Development District No. 1 in the City, pursuant to the provisions of the Act. The City ' has also determined that the funding of the necessary activities and improvements in Development District No. 1 shall be accomplished in part or in whole through tax increment financing in accordance with the TIF Act. In 1987 the City modified the boundaries of Development District No. 1 in order to expend tax increment generated by Tax Increment District No. 1 within the downtown area of the City. Although this modification does not involve expansion of the boundaries of Development District No. 1, the City intends to utilize tax increment from Tax Increment Financing District No. 2 to pay for some of the costs associated with intersection improvements at highways 5 and 101. C. Statement of Objectives The City seeks to achieve the following objectives through ' the modified Development Program: 1. promote and secure the prompt development of property l in Development District No. 1 in a manner consistent with the Comprehensive Plan and with minimal adverse impact on the environment, which property has been less productive because of the lack of proper utili- zation and lack of investment, thus promoting and securing the development of other land in the City; ' 2. promote and secure additional employment opportunities within Development District No. 1 and the City for residents of the City and the surrounding area, thereby improving living standards and preventing ' 2 I unemployment and the loss of skilled labor and other human resources in the City; 3. secure the increase of property subject to taxation by the City, county, school district, and other taxing jurisdictions in order to better enable such entities to pay for public improvements and governmental services and programs required to be provided by them; 4. secure the construction and provide moneys for the payment of the cost of public activities or improve- I ments in Development District No. 1, including intersection improvements to highways 5 and 101, which are necessary for the orderly and beneficial development of the Development District; and 5. promote the concentration of appropriate development within Development District No. 1 in order to maintain the area in a manner consistent with its significance to the City. Pursuant to the modified Program adopted by the City in July, 1981, tax increment has been expended within Development District No. 1 for roadway improvements, including completion of 184th Street to West 78th Street, construction of West 78th Street between 184th Street and 187th Avenue, construction of a local access road north of West 78th Street, completion of the service road south of highway 5, and construction of the Chanhassen portion of 184th Street. Installation of partial turn lanes and signals at highway 5 and 184th Street has been completed. Public utilities have been constructed within Development District No. 1 and drainage improvements have been made along the westerly boundary of the Development District. The 1987 modification expanded the boundaries of Development District No. 1 westerly generally along West 78th Street into the downtown Chanhassen area. Portions to the expanded Development District are also within the Chanhassen Downtown Redevelopment District, which was established in 1977 pursuant to Minnesota Statutes Section 469 .001 to 469 . 047. Projects within the area added to Development District No. 1 in 1987 which the City funded with excess increment from TIF District No. 2 included the signalization of the highway 5 - 184th Street intersection and land acquisition and site improvements for a commercial development within the downtown area. D. Environmental Controls I It is anticipated that no development within the Development District will present major environmental concerns. I 3 11 All City actions, public improvements and private development will be carried out in a manner which will comply with ' applicable environmental standards. E. Open Space to be Created IAny open space within the Development District will be created in accordance with the development controls of the City. ' F. Public Facilities to be Constructed All public facilities constructed within the Development District have been and will be financially feasible and compatible with the City' s long range development plans. Public improvements constructed to date within Development District No. 1 1 include roadway improvements on 187th Avenue, West 78th Street, 184th Street, the access road north of West 78th Street, the service road south of highway 5, signalization improvements at highway 5 and 184th Street and drainage improvements along ' the western boundary of the District . Public utilities have been constructed to all portions of the District. The City has also expended funds for signalization improvements and turn 1 lanes at highway 5 and 184th Street as well as land acquisition and site improvements in connection with a commercial development on West 78th Street. Public improvements which will be implemented as a result of this modification include improvements to highway 101 north of highway 5. G. Proposed Reuse of Property 1 It is not anticipated that any additional property will be acquired by the City within Development District No. 1 for use ' in connection with a private development. The City will acquire property in connection with roadway improvements. The property the City intends to acquire for roadway improvements is described in Exhibit A attached hereto. H. Development District Financing Within Development District No. 1, the City has created Tax Increment Financing District No. 2. Roadway improvement costs which will be incurred in Development District No. 1 will be paid through the use of tax increment generated from TIF District No. 2. I . Relocation. The City accepts its responsibility for providing for relocation pursuant to Section 469.133 of the Act. If relocation is necessary, provisions will be made in accordance with Minnesota Statutes, Sections 117.50 through 117 .56, inclu- sive. 4 J. Administration of Development District. Maintenance and operation of the public improvements to be ' constructed within Development District No. 1 will be the responsibility of the Administrator of Development District No. 2. Each year the Administrator will submit to the City Council the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of Section 469. 131 of the Act; provided, however, that such powers may only be exercised at the direction of the City Council. No action taken by the Administrator shall be effective without authorization by the City Council. The City has not previously created and does not anticipate the need to create an advisory board to advise the City Council on the planning, construction or implementation of the activities and improvements outlined in the modified Development District Program. I K. Description of Development District. A description and a map of the boundaries of Development , District No. 2 were included with the modified Program and Plan adopted in 1987, which are hereby incorporated by reference. No additional property is being added to Development District No. 1 by this modification. I I I 11 5 1 SECTION II. MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 2 1 A. Statutory Authority. Pursuant to Section 469 . 175, Subd. 4 of the TIF Act, the City has adopted the Plan for TIF District No. 2 and has ' established TIF District No. 2 within Development District No. 1. TIF District No. 2 was established on December 15, 1990 , and would have ceased to exist with the receipt of increment by the City in 1989. However, special legislation enacted by the Minnesota legislature in 1989 extended the duration of the TIF District through 1992 with the limitation that increment received during the years 1990 through 1992 may only be used in connection with improvements to state trunk highways 101 and 5 within Development District No. 1 or to pay administrative costs of the TIF district. B. Statement of Objectives. ' In addition to the objectives outlines in Section I, subdi- vision C hereof, the City seeks to achieve the following objec- tives through the modified Plan for TIF District No. 2: ' 1. provide employment opportunities within the City; 2. improve the tax base of the City and the general Ieconomy of the City and state; 3. encourage development in an area of the City which has ' not been utilized to its full potential; 4. provide for roadway improvements to those portions of highways 5 and 101 within Development District No. 1; and 5. implement relevant portions of the Comprehensive Plan. C. Statement of Public Purpose. ' In adopting the modified Program and Plan, the City Council intends to implement the provisions of the TIF Act enacted by the state legislature in 1989 specifically relating to TIF ' District No. 2. The purpose of this modification to the Plan for TIF District No. 2 is to amend the budget for the TIF District with regard to highway improvement costs and to extend the life of the TIF District through 1992. I 1 6 D. Development District Program. The City created Development District No. 1 at the same time as creation of TIF District No. 2. A modified Program has been drafted to describe development activities planned or authorized within the Development District and is included as Section I of this modified Plan. E. Description of TIF District. A description and a map of the expanded boundaries of TIF 1 District No. 2 was included with the modified Plan adopted in 1987. The map and description are hereby adopted by reference. No additional property is being added to TIF District No. 2 as a result of this modification. F. Development District Contracts. I The City has previously entered into development contracts for properties within TIF District No. 2 pursuant to Section 469.176, Subd. 5 of the TIF Act. Additional development contracts are anticipated with respect to the improvements for highway 101 north and highway 5. G. Classification of TIF District. TIF District No. 2-1 is an economic development TIF district, pursuant to Section 469.174, Subd. 12 of the TIF Act, although its duration has been extended through the receipt of increment payable in 1992 as a result of special legislation adopted in 1989 . H. Modification of TIF Plan. The Plan for TIF District No. 2 is being modified by the City, in order to amend the budget and note the extension of the duration of the TIF District. No additional modifications are anticipated except as they may relate to the road improvements on highways 5 and 101. I. Use of Tax Increment. , Pursuant to Section 469.176, Subd. 4 of the TIF Act, all revenues derived from TIF District No. 2 shall be used in accor- dance with the modified TIF Plan. The revenues shall be used to finance or otherwise pay the capital and administrative costs of development activities within the Development District as ' identified in the modified Program and modified TIF Plan. Increment received by the City during the years 1990 through 1992 shall be used only to pay for roadway improvements on highways 5 and 101 or to pay the administrative costs of the TIF district. 11 7 11 II J. Excess Tax Increment. I Pursuant to Section 469.176 , Subd. 2 of the TIF Act, in any year in which the increment exceeds the amount necessary to pay the costs authorized by the TIF Plan, the City shall use the I excess amount to do any of the following, in the order determined by the City: prepay the outstanding bonds; Ii. 2. discharge the pledge of tax increment therefor; I 3. pay into an escrow account dedicated to the payment of bonds; or II 4. return the excess amount to the Hennepin county or Carver county auditor who shall distribute the excess amount to the City, the county, and the school district in direct proportion to their respective tax IIcapacity rates. K. Limitation of Increment. Increment paid to the City during the years 1990 through 1992 shall only be used to pay for the costs of roadway I improvements to those portions of state trunk highways 5 and 101 which are within Development District No. 1 or to pay for the administrative costs of this District. 11 L. Limitation on Administrative Expenses. Pursuant to Section 469.176, Subd. 3 of the TIF Act, admin- I istrative expenses are limited to 10 percent of the total tax increment expenditures. Administrative expenses mean all expenditures of the City other than amounts paid for the II purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of real property in the District, relocation I benefits paid to or services provided for persons residing or businesses located in the District, or amounts used to pay interest on, fund a reserve for , or sell at a discount bonds I issued pursuant to Section 469.178 of the TIF Act. Adminis- trative expenses includes amounts paid for services provided by bond counsel, fiscal consultants and planning or economic development consultants. IIM. Limitation on Boundary Changes. I The geographic area of TIF District No. 2 may be reduced, but it cannot be enlarged after five years following the date of certification of the original tax capacity by the Hennepin II county auditor. This modification does not include an expansion of the boundaries of TIF District No. 2. 1 8 N. Relocation. The City accepts as binding its obligations under state law for relocation and will administer relocation services for families, individuals and businesses displaced by public action. O. Parcels to be Acquired Within the TIF District . It is anticipated that property will be acquired by the City within Development District No. 1 in connection with the improvements to highway 101 north of highway 5. A description of the parcels is attached hereto as Exhibit A. ' P. TIF Account. The tax increment received during the years 1990 through , 1992 with respect to TIF District No. 2 shall be segregated by the City in a special account on its official books and records and held for payment of costs associated with improvements to highways 5 and 101 and to pay the administrative costs of the TIF district. Q. Estimate of Project Costs. The estimated budgeted amounts for the original TIF District were included in the Plan adopted on December 15, 1980. Additional amounts were shown in the modified Plan adopted on September 21, 1987 . The following represent additional amounts which will be expended within Development District No. 1 as a result of this modification: Land Acquisition $1,820,000 Public Improvements (highway 101 north of highway 5) $1,500,000 Administrative Expenses 180,000 ' Total $3, 500,000 R. Estimate of Bonded Indebtedness. ' No bonds will be sold to pay for the costs anticipated in this modified Plan. , S. Original Tax Capacity. The original tax capacity of TIF District No. 2 was established in 1980 upon certification of the TIF District . The tax capacity of the property added to the TIF district in 1981 was established at that time. No additional property is being , added to TIF District No. 2 as a result of this modification. I 9 Each year since the certification of the original tax capacity, the county auditor has increased or decreased the original tax capacity of property within TIF District No. 2 as a result of: ' i. change in the tax exempt status of the property; 2. reduction or enlargement of the geographic boundaries of the TIF district; 3 . reduction of valuation by means of a court-ordered abatement, stipulation agreement, voluntary abatement ' made by the assessor or auditor or by order of the Minnesota commissioner of revenue; or 4 . any change in tax classification under Minnesota Statutes Section 273.13 of property after it has been added to the TIF district. ' In addition, each year the auditor has added to the original tax capacity of TIF District No. 2 an amount equal to the original tax capacity for the preceding year multiplied by ' the average percentage increase in tax capacity of all property within the TIF district during the preceding five years. ' T. Estimate of Captured Tax Capacity. The captured tax capacity of property within TIF district No. 2 was established in 1980 when the District was created and ' in 1981 when it was expanded to its current boundaries. Those tax capacities estimates are hereby incorporated by reference. There will be no change in the captured tax capacity as a result ' of this modification. U. Duration of the TIF District. In accordance with Section 469 .176, Subd. 1 of the TIF Act, the City should have expected to receive TIF payments through 1989. However, special legislation adopted in 1989 extended the ' duration of TIF District No. 2 through 1992. The City hereby asserts its right and intent to collect increment from TIF District No. 2 through 1992. ' V. Estimates of Impact on Other Taxing Jurisdiction. It is anticipated that $3,100,000 in increment will be cap- tured from property within TIF District No. 2 during the years 1990 through 1992. The City, county and school district would have shared this increment according to their respective tax ' capacity rates had not the duration of TIF District No. 2 been extended. The shares of the increment for the three year period from 1990 to 1992 are estimated to be as follows: 1 10 II e II Taxing Jurisdiction Three Year Increment City of Chanhassen $ 644,800 II Hennepin County 933,100 Independent School District II No. 112 1,426 ,000 Other 96 ,100 TOTAL $3,100 ,000 I W. Annual Financial Report . Pursuant to Section 469. 175, Subd. 6 of the TIF Act, the I City must file an annual financial report regarding TIF District No. 2. The report shall be filed by July 1 of each year with II the school board, the county board and the state auditor . The report to be filed by the City shall include the following information: 1. the original tax capacity of TIF District No. 2; II 2 . the captured tax capacity of TIF District No. 2, including the amount of any captured tax capacity shared with other taxing districts; 3 . the outstanding principal amount of bonds issued or II other loans incurred to finance project costs in TIF District No. 2; 4. for the reporting period and for the duration of TIF 1 District No. 2, the amount budgeted under the TIF Plan and the actual amount expended for the following II categories: a) acquisition of land and buildings through condem- nation or purchase; b) site improvement or preparation costs; c) installation of public utilities or other public 1 improvements; d) administrative costs, including the allocated I cost of the City; 5. for properties sold to developers, the total cost of II the property to the City and the price paid by the developer; and 6. the amount of tax exempt obligations, other than those 1 reported under clause ( 3) , which were issued on behalf of private entities for facilities located in TIF District No. 2. II 11 I 1 In addition, the City 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 payment that are due for the current calendar year on ( i) general obligation tax increment financing bonds, ' and ( ii) other tax increment financing bonds. The City must annually report to the commissioner of revenue the following amounts for TIF District No. 2: ' 1. 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 financing plant 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 financing district; and ' 6. any additional information that the commissioner of revenue may require. ' CH130-011 1 11 12 1 . I EXHIBIT A 1 The following properties located within Development District No. 1 will be I acquired by the City in connection with public improvement projects: 25-0133200 I 25-0132200 18-116-22210002 I 25-1750010 25-1750020 25-1750030 25-0122300 I 25-6860031 25-1800560 25-1970010 I I 1 I I I I I I I I I CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ' Date Resolution No. Motion By Seconded By RESOLUTION ADOPTING A MODIFIED ' DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 2 BE IT RESOLVED By the City Council (the "Council") of the City of ' Chanhassen, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. On December 15, 1980, the City adopted a Development Program ("Program") and established Development District No. 1, pursuant to and in ' accordance with Minnesota Statutes Section 469.124 through 460.134. The City modified the Program on August 3, 1981 and September 21, 1987. ' 1.02. The City established Tax Increment Financing District No. 2 and adopted a Tax Increment Financing Plan ("Plan") for same on December 15, 1980, pursuant to and in accordance with Minnesota Statutes Sections 469.174 through 469.179. The City modified the Plan on August 3, 1981 and September 21, 1987. 1.03. In 1989, the Minnesota legislature adopted special legislation extending the duration of Tax Increment Financing District No. 2 from 1989 to 1 1992 on the condition that all increment collected in the years 1990 through 1992 be used for improvements to highway 101 north of highway 5 or on the administrative expenses of the district. ' 1.04. The Council has caused to be prepared a modified Program for Development District No. 1, and a modified Tax Increment Financing Plan for Tax Increment Financing District No. 2, detailing the expenditures during 1990 through ' 1992 authorized by special legislation. 1.05. The City has performed all actions required by law to be performed prior to the adoption of a modified Program and the adoption of a modified Plan, including, but not limited to, notification of Hennepin County and Independent School District No. 112; a review by the City planning commission of the modified ' Program and the modified Plan for their consistency with the general plans for development of the City; and holding a public hearing regarding the modified Program and the modified Plan upon such notice as is required by law. I . 1 t I 1.06. The modified Program and modified Plan are contained in a document entitled "Modified Development Program, Development District No. 1 and Modified Tax Increment Financing Plan, Tax Increment Financing District No. 2, City of Chanhassen, Minnesota," dated March 12, 1990, and on file in the office of the City Manager. 1.07. The City Council has fully reviewed the contents of the modified Program and modified Plan and has on this date conducted a public hearing thereon at which the views of all interested persons were heard. Section 2. Findings Related to the Modification of Development District Program for Development District No. 1. I 2.01. The Council hereby finds that the modification of the Program for Development District No. 1 is intended, and in the judgment of the Council, its effect will be to provide an impetus for additional development in the City, and I otherwise promote the public purpose and objectives specified in the modified Program. 2.02. The Council also finds that the modified Program will afford I maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. 2.03. It is further found and determined that, in accordance with the I findings of the planning commission, the modified Program conforms to the general plan for development of the City as set forth in the City's comprehensive plan. Section 3. Findings Related to the Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 2. 3.01. It has been and remains the opinion of the Council that development of the properties included within the boundaries of Tax Increment Financing District No. 2 would not reasonably be expected to occur solely through private I investment within the reasonably foreseeable future and that the use of tax increment financing has been necessary. 3.02. The Council finds that the modified Plan for Tax Increment Financing I District No. 2 conforms to the general plan for development of the City, based upon the recommendations of the planning commission. I 3.03. The Council further finds that the modification of the budget of Tax Increment Financing District No. 2 is intended to comply with special legislation adopted by the Minnesota legislature in 1989 regarding the extension of the I duration of Tax Increment Financing District No. 2 and the use of increment generated during such period. Section 4. Adoption of Modified Development Program and Tax Increment I Financing Plan. 4.01. The modified Development Program for Development District No. 1 I and the modified Tax Increment Financing Plan for Tax Increment Financing District No. 2 are hereby approved and adopted. 1 2 1 . AO I 4.02. The boundaries of an Development District No. 1 p c and Tax Increment Financing District No. 2 are described in the modified Program and modified Plan I and incorporated herein by reference. No property has been added to either Development District No. 1 or Tax Increment Financing District No. 2 as a result of adoption of the modified Program and modified Plan. 1 4.03. The City Manager is authorized and directed to transmit a certified copy of this resolution together with a copy of the modified Program and modified I Plan to Hennepin County and to file a copy of the modified Program and modified Plan with the Minnesota Commissioner of Trade and Economic Development. Passed this 12th day of March, 1990, by the City Council of the City of IChanhassen, Minnesota. IDonald J. 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