2018-063 City of Hopkins Finding Parcels are Occupied by a Structurally Substandard Building and Meet the Requirements of a Redevelopment TIF District Under Minnesota Statutes, Secoind 469.174, SubD.10 CITY OF HOPKINS
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2018-063
RESOLUTION OF THE CITY OF HOPKINS FINDING PARCELS
ARE OCCUPIED BY A STRUCTURALLY SUBSTANDARD
BUILDING AND MEET THE REQUIREMENTS OF A
REDEVELOPMENT TIF DISTRICT UNDER MINNESOTA
STATUTES, SECTION 469.174, SUBD. 10
WHEREAS, it has been proposed that the City Council for the City of Hopkins, Minnesota, (the
"City"),create a tax increment financing district in an area within the City to be designated a redevelopment
district as defined in Minnesota Statutes, Section 469.174, Subd. 10 (the "TIF District"); and
WHEREAS, in order to create this type of TIF District, the City must make a determination that
before the demolition or removal of any substandard buildings, certain conditions exist; and
WHEREAS, the conditions found by the City to exist throughout the proposed TIF District are
that parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities,
paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not
including outbuildings, are structurally substandard to a degree requiring substantial renovation or
clearance; and
WHEREAS, in order to deem a parcel as being occupied by a structurally substandard building,
the City must first pass a resolution before the demolition or removal that the parcel was occupied by one
or more structurally substandard buildings and that after demolition and clearance the City intended to
include the parcel within the proposed tax increment financing district; and
WHEREAS, there exists in the City on the parcel at 325 Blake Road, Hopkins, MN, PID # 19-
117-21-14-0002 (collectively, the "Parcel") one structurally substandard building to be demolished or
removed (the "Substandard Building Condition"); and
WHEREAS, a parcel is deemed to be occupied by a structurally substandard building if the parcel
was occupied by a substandard building or met the criteria of Minnesota Statutes, section 469.174,
Subd. 10(e)within three years of the filing of the request for certification of the parcel as part of the district
with the county auditor, in addition to other requirements as are required by law.
NOW,THEREFORE,BE IT RESOLVED by the City Council for the City of Hopkins that:
1. The Council has received from LHB, Inc.the"Report of Inspection Procedures and Results
for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District —
Hopkins Cold Storage Redevelopment TIF District",dated June 9,2017 (the"Inspection Report"),finding
that, based on an inspection of the building located on the Parcel, such building was determined to be
substandard under the definition set forth in the Minnesota Statutes, Sections 469.174 to 469.1794, as
amended (the"TIF Act"). Based on the Inspection Report and other information available to the Council,
the Council finds that the building on the Parcel is structurally substandard to a degree requiring substantial
renovation (i.e. 100% of the buildings in the proposed TIF District) or clearance and at least 15% of the
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area of the Parcel identified on Exhibit A attached hereto contains improvements including one structurally
substandard building and therefore more than 70% of the area of the proposed TIF District is occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures as required by the TIF
Act.
2. After the date of approval of this resolution,the buildings on the Parcels may be demolished
or removed by the City, or such demolition or removal may be financed by the City, or may be undertaken
by a developer under a development agreement with the City.
3. The City intends to include Parcels in a redevelopment TIF District, and to file the request
for certification of such district with the Hennepin County auditor within 3 years after the date of demolition
of the building on the Parcels.
4. Upon filing the request for certification of a new tax increment financing district, the City
will notify the Hennepin County auditor that the original tax capacity of the Parcel must be adjusted to
reflect the greater of(a) the current net tax capacity of the parcel, or(b) the estimated market value of the
Parcel for the year in which the building was demolished or removed,but applying class rates for the current
year, all in accordance with Minnesota Statutes, Section 469.174, Subd. 10(d).
5. City staff and consultants are authorized to take any actions necessary to carry out the intent
of this resolution.
Adopted by the City Council of the City of Hopkins this 17th day of July, 2018.
d441 '
Molly 7Cummings,Malr
ATTEST:
Amy I omeier, City Clerk
(Seal)
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PARCEL AND PROPOSED TIF DISTRICT
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