CR 99-116 Supervalue Freezer Warehouse-Amending Base Value of TIF District 2-11
--- -----~---~--------~-- ---------- ----------- - - - ----- --- ~------------ - -----~
/ '\
CITY OF
~<I>~
June 30, 1999 HOPKINS Council Report 99-116
0
SUPERV ALU FREEZER W AREHOUSE--AMENDING
BASE VALUE OF TIF DISTRICT 2-11
ProDosed Action
Staff recommends approval of the following motion: Adopt Resolution 99-053, requesting that
the Hennepin County Auditor adiust the original net tax capacity of the Hopkins Housing and
Redevelopment Authority's Tax Increment Financing District 2-11. adding the assessor's
estimated improvement value as of Jan~ary I, 2000, for the SuperValu freezer warehouse proiect
at 101 Jefferson Avenue South. Building Permit No. 99008. dated 1/13/99, subject to HRA
approval.
Overview
On October 6, 1998, the City Council approved Resolution 98-061, establishing Tax Increment
District 2-11. This district was created as part of the overall process to facilitate SuperValu's
redevelopment of the Hennepin County Public Works site. This tax increment district includes all
of the SuperValu property east and west of Highway 169 (except for the perishable warehouse
site just east of 11 th Avenue).
0 At the same time the Council took action on the establishment of TIF District 2-11, approval was
also given to SuperValu for construction ofa 35,000 square-foot addition to their freezer facility
at 101 Jefferson A venue South. Since the above action, there has been a question raised as to the
logic of collecting increment from a project that was proposed prior to the establishment of the
TIP district and was completed without any tax increment assistance. To address this issue, staff
is now recommending that the assessor's estimate of the value of this improvement be added to
the base value of Tax Increment District 2-11. The effect of this action would be to have the
property taxes generated from this new improvement distributed to the different taxing
jurisdictions rather than being provided to the City as tax increment.
Issues to Consider
.. What are the specifics of this action?
.. What is the impact of this action?
SUDDortim! Documents
.. Resolution 99-053
.. Site Map
0
Council Report 99-116, June 30, 1999 - Page 2
0
Issues to Consider
. What are the specifics of this action?
Under state statute, cities are not allowed to place what are identified as IIpreviously planned
improvements" in a tax increment district. These are improvements for which a building
permit has been issued before establishment of the tax increment district. In the case of the
subject SuperValu warehouse project, the building permit was issued on 1/13/99. Tax
Increment District 2-11, in which this property is located, was approved by the City on
October 6, 1998; therefore, in accordance with the strict definition of the statute, this would
not be considered a previously planned improvement. In reality, however, this project was
being considered several months prior to the establishment of the TIP district. The actual
CUP application was submitted to staff on August 31, with the conditional use permit being
approved by the City Council on October 6.
. What is the impact of this action?
The impact of the subject action will be to have the increased taxes that are generated from
0 the subject warehouse project be distributed to the different taxing jurisdictions rather than
having it all come to the City as tax increment. This will not create any problems concerning
the development agreement that was executed between the HRA and SuperValu. This matter
has been reviewed with representatives ofSuperValu, and they concur with the action as
proposed.
Alternatives
The City Council has the following alternatives regarding this issue:
1. Approve the action as recommended by staff. This will result in less tax increment being
generated in Tax Increment District 2-11; however, the City will receive approximately 20
percent of these taxes.
2. Do not undertake action to readjust the tax increment base. This will result in all of the
tax increment generated from the subject SuperValu property coming to the City in the
form of tax increment.
3. Continue the item for additional information.
0
CITY OF HOPKINS, MINNESOTA
0 Hernnepin County, Minnesota
RESOLUTION NO. 99-053
BEING A RESOLUTION REQUESTING THAT THE
HENNEPIN COUNTY AUDITOR ADJUST THE ORIGINAL
NET TAX CAPACITY OF THE HOPKINS HOUSING AND
REDEVELOPMENT AUTHORITY'S TAX INCREMENT
FINANCING DISTRICT NUMBER 2-11
WHEREAS, the Housing and Redevelopment Authority in and for the City of Hopkins,
Minnesota (the "Authority") and the City of Hopkins (the "City"), have the legal
authority to create redevelopment projects pursuant to Minnesota Statvtes. Section
469.001 to 469.047, inclusive, and to create tax increment fmancing districts
within such redevelopment projects pursuant to M;nne$ot, Statutes. Sections
469.174-.179, inclusive.
WHEREAS, pursuant to a Tax Increment Financing Plan (the "Tax Increment Plan'') the
Authority and the City created Tax Increment Financing District No.2-II (the
0 "District") within the Authority's Redevelopment Project No.1; and
WHEREAS, at the request of the Authority, the Hennepin County Auditor has certified the
original net tax capacity of the District pursuant to Minnesota Statutes, Section
469.177; and
WHEREAS, at the time of the City Council's approval of the Distric.t. the City Council also
granted conditional use permit approval for the construction of certain
improvements by the owner of a parcel of property within the District; and
WHEREAS, the improvements that are the subject of said conditional use permit approval will
generate tax increment not expected to be collected by the City and Authority
when the District was created; and
WHEREAS, the Authority and City did not intend to use the tax increment generated from said
improvements and has detennined to request the Hennepin County Auditor to add
the value of the improvements to the original net tax capacity of the District so
that taxes generated from such improvements will be distributed among the
various taxing jursidictions.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City that, subject
to approval by the Board of Commissioners of the Authority, staff of the Authority are
0 authorized to request that the Hennepin County Auditor adjust the original net tax capacity of the
District by adding the assessor's estimated improvement value as of January 1, 2000, for the
- - -
-- -
.
0 SuperValu freezer warehouse project at 101 Jefferson Avenue South, Building Permit No.
99008, dated January 13, 1999.
DATED: ,1999
Mayor
A TrEST:
I
Clerk I
I
0
0
TOTAL P.03
u_ ~__~
-- '---L I '
:-I-D ;~~f JJ. ;1 '\~.
=(,-L u- ,/1 ~
. --r J' r ,T, .....!/ ~
O \\ ~ ~ >>hJ :'l/ em 0' -1rr-~
. _ ' -- I - \\. I ~ II ~-III - . -..,.
, ,[ / .^ tt- .~ b}'"
~~CEliTU l '.. ", - i ~--- ~/' - .;.
"-./ ~ -
'- ~ - ' , ~ 'I
_' ~ _ 11~ AI t [lJ i i~ dJ rJh. ~, ,,= · 1111fT1l
- . ~ 8Jl i' · ~J:D:. ,~~ ~~ % 1J - ,
m....... -=- . ~ ~ ~.r:t::.-<, ~'J~ ,~ R'-4 r' . .
~ . I -t 11 ....-'~ /'( ~/Ih '~1 TT ~~
U ~i---.... _ . _ --"'1' '( ~ -\ -...." 1 - "'>7".-fl. I I ' J,.
J!~ -r- r-~ ~~ . ') \-;'
JJ=i L- = ~ ~ ,-~ :\L.::\>-\./ J\ I rJ I- ;- l. ;;0- ~
fi t =: ~ '=' to>- == _ ~ _ ',:.A?;-....u _~ /J Y 1.. R-2 · . .. R-~~ '"
~Rn L- ::-: 1-1- = I-'H _ = I.. ~ '\~~.1~ W ~ 1" - .......... "\11 t=I._ -
'1 _. _ ~ = _ ~ -- l - l-'7 i- ~ 1== I
J= :":;.:::l -I- :::=::i =C:i c:JC:l::......... . .N I.....:l ' - - -
1=181= ~~ EE ~t; EE:;r= ~~ -:z:::tf::t:.-r, .,1_1 t. '- _ ===t- . :::;:,
~R.E..:l ~ \ ~ ~,I..L - CO ~ '.-a;; f!Ji.
~!t.~ .~- c_~~ "R~ W [j-/~~.!u./~
" __ 1----1 ~ .J~)' r-o~t.: r)(. , l
JfJ ::::J t:;~ L....JTI ~ ~ ~ - '~- >-1-,-'1'-. ~ ~ ,'- ~"'" ~~
~ ']:: .......j:: (::1= I ~ ~ ~ r---r- ~ r = /U' a
~ I- f-I- 1-1- ::: - ' - -"
L'j: r-!:::~ I=!::: =- ~ -t- . ,-' .
F'~<:- =1= ==- "'I:;::::: ,w ' ~ ~I-2 I/~'" B-3 R
Fi I- V ~ ~ =~ t= t= ~ )oJ' \ /' ~ 'fl.1
~y ~I ~ ~ _== _I- _<- ~ . ~: ,,>- - ~ ~ J., ...J \,
. -,i, . l::r ~ J : '" - - pP k n;fR-4 F
~jw I-lb F, f ~~]I 'hV;" ~\' ~~ ~ ~f"1
~. R~ ~ I I ~ . ,'" -~ rPI-~ -, ~------ """ ...-.
JfUW . . I'.W \I I-
-tr"W " "" nr.. I .... - ~ ~~~~ ~:, ~. ~::
b-....c; :: _ rl- ~ : ,;;'"~ i-::: ~ >- I- -- I- - I-
nil - ~, - >- L..J,.. :::: I- r:: -!S;;S~ "-:' ~ t =
t;:::t:: ',I " 1-11-,:: b J '" ~ >- ==
~:: 10 1:::= c~ '::.B\.. ~~ r. == = 1-=
-'~Urnrr _H I L-~f::::j!"'-\J ~_~ I ::;::l .... ......c 1--
--r.: I a: ';,:..., ~ ~:;i:l: IT-'2 ' , IB - u:..oo.. - - ·
lii'!J1 '/. .....:.~...' ~ - - .- - -.,
I . .....,..... ' .--. - --
,; ~.-;..~..__.., MAIt..I:" ~
_ . ~ l,-.' . I' . I I "O~"'.. ~ . --
III ~___ --d '-- SCHOO" = -I- -
::-::::.:::' .: . ---+
- __________~ ~ - - - - I
Jt~~~: ~~. ~ g~._._-~~ E~=--~IIII
:::J~ 4'~ ~ ....
~ 1-2 ~ {' I ~ = >-- - =.
r E:~__ '~~II-
~ , :::: ~= --I-~-! II--
v; == -I- ~ - == j:: E -i I--
~ I == =
h h . == ,n '
~ I . "- ::: ~r
~ I ...~ c=to ' 1:;;: ~= -j " Ii
~~ '. =~, ...." It ,'I 1111 ,Iilr
;.- w~ =;=___- i\Tl", '
II . CD'''.
_ === 1-----; _ l::' ~ I
n i= ~ =::::. _ ,.. ~, REVISIONS
rg~_- R-j! =~~ ~ ~~' BY OJ
~~ _ ~::lCt: Ie: B I ' ' . . 78-453 101
~i- g/. " 7f1-L"i7 7/
"...-/-1 - .' I \ . . 81-<178 5
~_.. 1-_ _~ .... , 125 8/3
U" '-- _L.--_ . -
rC~ __ r-'--- I . . -,
I , II~ '- I:::S! _0-' I,i L 19 : V I .NO.=-~ 28
0, -l _ >-- L- f-- _ .' . ii ' lI6.. AI
III -I- >-- f-- -- ' . .
~I/'I _ _."- I- =-: ,.' . . !..-! 7
I ' _ _ if ' / , . . 8. 1 '1/
,; I,,:::; I..~ t:: II 1~;'/:-I(i";0'1. ' ~! Ii a ~ .8 .57'1 I,{
, " ' ~ ---'1/'-"1141/(/:/' II -raf 271
I ~'/' " Mil/:. 1~;;1I' . ~. . ~ 5/1
W,' . u'i-'l.h '" I 'III . . ?n
_ 1':< ,~'~;~l/iil,#' ~~ 1: ""2-
F -"/11 ....;j I 'II~' 1'1;:
, /11, /, "//'1//
I