III. 1. Adoption of a Modification to the HRA's Spending Plan for TIF Disticts 1-2, 2-9 and 2-11December 20, 2022 HRA Report 2022-013
AMENDMENT TO TIF SPENDING PLAN
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Amended TIF Spending Plan.
This motion is contingent upon the Hopkins City Council also approving the Amended Spending Plan
following a public hearing.
Overview
The proposed amendment is to update the Spending Plan to reflect commitments made for Enclave’
proposed redevelopment of 1106 Mainstreet. On September 21, 2021, both the City’s HRA and the City
Council approved a TIF Spending Plan (the Plan) pursuant to special general legislation approved in 2021
to use unobligated TIF funds to promote construction of private developments and job creation. The Plan
originally outlined two major redevelopment projects for funding:
Trilogy’s proposed three-phase redevelopment located at 1009 Hill Street and 8594 and 8490
Excelsior Boulevard consisting of multifamily housing, commercial space and underground parking.
Total of $1,370,000 approved ($685,000 each for Phase I and Phase II); and
Alatus’ proposed redevelopment located at 325 Blake Road consisting of multifamily market rate
and affordable housing, sr. cooperative, town homes; underground and structured parking, and
commercial space. Total of $3,750,000 approved.
Since approval in 2021, the City and HRA have approved $1,250,000 in funding for Enclave’s
redevelopment proposed at 1106 Mainstreet consisting of multifamily housing, commercial space and
underground parking. Because this project was not originally listed in the Plan, it was determined the
Plan should be modified to include it, add language to allow any future projects not yet identified if funding
is still available and hold a new public hearing at the City Council.
After approval, staff will forward the Plan to the State, and make the transfers to a separate fund as
required by statute by the end of the year. The dollars will then be provided to the developments pursuant
to the various approved agreements prior to December 31, 2025.
Primary Issues to Consider
The amendment reflects obligations previously committed and allows for some flexibility if additional funds
are available.
Supporting Information
• Amended Spending Plan for TIF District 1-2, 2-9 and 2-11
___________________________
Kersten Elverum
Director of Planning & Development
Financial Impact: $0 Budgeted: __________ Source: _____________________
Related Documents (CIP, ERP, etc.): _______________________________________
Original Adoption Date:
HRA Adoption Date: September 21, 2021
CITY Adoption Date: September 21, 2021
Modified Adoption Date:
HRA Adoption Date: December 20, 2022
CITY Adoption Date: December 20, 2022
Hopkins Housing and
Redevelopment Authority
City of Hopkins,
Hennepin County, Minnesota
SPENDING PLAN
TIF District 1-2 (Entertainment District)
TIF District 2-9 (Oaks of Main)
TIF District 2-11 (Super Valu)
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Prepared by:
Ehlers
3060 Centre Pointe Drive
Roseville, Minnesota 55113
SPENDING PLAN
FOR TIF DISTRICTS 1-2 (ENTERTAINMENT DISTRICT), 2-9 (OAKS OF MAIN), AND
2-11 (SUPER VALUE)
I. PURPOSE
The Hopkins Housing and Redevelopment Authority (the “Authority”) administers
the Tax Increment Financing Districts listed above (the “TIF Districts”) in the City of
Hopkins, Minnesota (the “City”), and proposes to adopt a Spending Plan for the TIF
Districts in accordance with Minnesota Statutes, Section 469.176 Subd. 4n (the “Act”).
The purpose of the Spending Plan is to develop or redevelop sites, lands or
areas within the City in conformity with the City’s Comprehensive Plan or other City
plans or objectives by using available tax increments from the TIF Districts to provide
improvements, loans, interest rate subsidies, or assistance in any form to private
development consisting of the construction or substantial rehabilitation of buildings and
ancillary facilities, which will create or retain jobs in this state, including construction
jobs.
II. PLAN
The Authority is authorized as follows:
(a) To use available tax increments from the TIF Districts to provide
improvements, loans, interest rate subsidies, or assistance in any form to private
development consisting of the construction or substantial rehabilitation of buildings and
ancillary facilities (the "Projects") in financing assistance to further the goals in the City’s
Comprehensive Plan or other City plans or objectives, if doing so will create or retain
jobs in the state, including construction jobs, that the private development will
commence before December 31, 2025 (unless a later commencement date is
authorized by law); and that such construction would not have commenced before
December 31, 2025 without the assistance under this Spending Plan. Preference for
financing assistance will be for acquisition, environmental remediation, demolition, soil
corrections, site preparation, underground parking, public improvements, utilities, roads
and affordable housing. Identified redevelopments include but are not limited to the
following:
Trilogy’s proposed three-phase redevelopment located at 1009 Hill Street
and 8594 and 8490 Excelsior Boulevard consisting of multifamily housing,
commercial space and underground parking;
Alatus proposed redevelopment located at 325 Blake Road consisting of
multifamily market rate and affordable housing, sr. cooperative, town
homes; underground and structured parking, and commercial space; and
Enclave redevelopment proposed at 1106 Mainstreet consisting of
multifamily housing, commercial space and underground parking.
The Authority retains the right to finance other projects other than those identified
as they arise and dollars remain available under the Spending Plan. The Projects shall
commence and dollars incur redevelopment costs prior to December 31, 2025 (unless a
later commencement date is authorized by law) and constitute Projects that would not
commence by such date without the assistance provided pursuant to this Spending
Plan.
(b) To amend the budget set forth in the Tax Increment Financing
Plans for the TIF Districts as necessary to provide for the assistance authorized by this
Spending Plan.
(c) To take any other action necessary and authorized under the Act in
connection with the construction or substantial rehabilitation of facilities of the type
described in clause (a) above.
The assistance provided pursuant to this Plan shall be subject to Minnesota
Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Law”), if applicable,
and shall be subject to the City’s Business Subsidy Policy.
This Spending Plan authorizes, but does not obligate, the Authority to spend
Unobligated Tax Increment. Any obligation to provide assistance under this Spending
Plan must be evidenced by a contact approved by the Board of Commissioners of the
Authority, entered into with a private party who otherwise meets the requirements of this
Spending Plan and the Act.
The City and the Authority may amend this Spending Plan at any time in
accordance with the procedures for approval of the Spending Plan under the Act.
Authority staff are authorized and directed to maintain a copy of this Spending
Plan with the records of the Authority for the TIF Districts and to file a copy of the
Spending Plan with the Office of the State Auditor.
City of Hopkins
By _________________________________________________
Its Mayor
Hopkins Housing and Redevelopment Authority
By __________________________________________________
Its President