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III.3. Elimination of Parcels from Tax Increment Financing District No. 2-11 CITY OF HOPKINS HRA Report 2024-07 To: Honorable Chair and HRA Members Mike Mornson, Executive Director From: Kersten Elverum, Director of Planning & Development Date: December 2, 2024 Subject: TIF District No. 2-11 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve Resolution 555 approving the elimination of parcels from Tax Increment Financing District No. 2-11 within Redevelopment Project No. 1 of the City of Hopkins. OVERVIEW City staff have been in conversations with Cargill representatives regarding property they own adjacent to Excelsior Crossings at 100 Jackson Avenue North. They are interested in selling the property for development but in researching the history it was found that the property is divided between two lots, one which is in the 2-11 TIF District, and one parcel that was outside. When tax parcels are in different taxing authorities (boundaries such as city boundaries, school districts, or in this case, a tax increment financing (TIF) district, the parcels can’t be combined. However, lot combination is necessary for the desired development to move forward. As vacant land that was not developed, the parcel that is within the District is not significantly contributing to the District and the other parcel cannot be added at this point, so to combine the lots for development to occur, the parcels must be officially removed from the District. Once certified, the lot combination can be accomplished as an administrative action by the City Planner. Following that, the owner can submit for land use approvals for development on the entire site. SUPPORTING INFORMATION • Resolution 555 Planning & Economic Development HOPKINS HOUSING AND REDEVELOPMENT AUTHORITY CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 555 RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM TAX INCREMENT FINANCING DISTRICT NO. 2-11 WITHIN REDEVELOPMENT PROJECT NO. 1 OF THE CITY OF HOPKINS. WHEREAS, on October 6, 1998, the City of Hopkins (the "City") created its Tax Increment Financing District No. 2-11 (the "TIF District") within its Redevelopment Project No. 1 (the "Project") by approval of a tax increment financing plan (the "TIF Plan) for the TIF District; ; and WHEREAS, the following properties, by property identification numbers as described in Exhibit A, were included in the TIF District; and WHEREAS, the City desires by this resolution to amend the TIF Plan to remove the above-described parcels from the TIF District, thereby reducing the size thereof; and WHEREAS, the total current net tax capacity of the parcels to be eliminated from the TIF District equals or exceeds the net tax capacity and, therefore this amendment to the TIF Plan is accomplished pursuant to Minnesota Statutes, Section 469.175, Subdivision 4, clause (e)(2)(A). NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Hopkins that the TIF Plan for the TIF District is hereby amended to remove the described parcels and the HRA Executive Director is authorized and directed to notify the County Auditor thereof pursuant to Minnesota Statutes, Section 469.175, Subdivision 4, clause (e). Adopted by the City Council of the City of Hopkins this 2nd day of December, 2024. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk