1998-062CITY OF HOPKINS
NENNEPIN COUNTY
STATE OF MINNESOTA
Council member introduced the following resolution and moved its adoption:
RESOLUTION NO. 98-062
RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT
PLAN FOR REDEVELOPMENT PROJECT NO. 1; AND ESTABLISHING TAX
INCREMENT FINANCING DISTRICT N0.2-10 THEREIN AND ADOPTING THE
RELATED TAX INCREMENT FINANCING PLAN THEREFOR.
BE IT RESOLVED by the City Council (the "Council") of the City of Hopkins, Minnesota (the
"City"), as follows:
Section 1. Recitals.
1.01. The HRA has heretofore established Redevelopment Project No. 1 and adopted the
Redevelopment Plan therefor. It has been proposed that the City establish within Redevelopment Project
No. 1 Tax Increment Financing DistrictNo. 2-10 ("District No. 2-10") and adopt the related Tax Increment
Financing Plan therefor (the "Plan"); all pursuant to and in conformity with applicable law, including
Minnesota Statutes, Sections 469.001 through 469.047 and 469.174 through 469.179, all inclusive, as
amended, all as reflected in the Plan, and presented for the Council's consideration.
1.02. The Council has investigated the facts relating to the Plan.
1.03. The City has performed all actions required by law to be performed prior to the adoption and
approval of the proposed Plan, including, but not limited to, notification of Hennepin County and School
District No. 270 having taxing jurisdiction over the property to be included in District No. 2-10, a review
of and written comment on the Plan by the City Planning Commission, and the holding of a public hearing
upon published notice as required by law.
1.04. Certain written reports (the "Reports") relating to the Plan and to the activities contemplated
therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City
.files and proceedings on the Plan. The Reports include data, information and/or substantiation constituting
or relating to the bases for the other findings and determinations made in this resolution. The Council hereby
`confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this
resolution to the same extent as if set forth in full herein.
1.05 The Council recognizes that, pursuant to Minnesota Statutes, Section 469.177, Subd. 3,
clause b, there is a mandatory fiscal disparities contribution for DistrictNo. 2-10, an economic development
district.
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Section 2. Findings for the Adoption and Approval of the Plan.
2.01. The Council hereby finds that the Plan, is intended and, in the judgment of this Council, the
effect of such actions will be, to provide an impetus for development in the public purpose and accomplish
certain objectives as specified in the Plan, which is hereby incorporated herein.
Section 3. Findings for the Establishment of Tax Increment Financing District No. 2-10.
3.01. The Council hereby finds that Tax Increment Financing District No. 2-10 is in the public
interest and is an "economic development district" under Minnesota Statutes, Section 469.174, subd. 12.
3.02. The Council further finds that the proposed development would not occur solely through
private investment within the reasonably foreseeable future and that the increased market value on the site
that could reasonablybe expected to occur without the use of tax increment financing would be less than the
increase in the market value estimated to result from the proposed development after subtracting the present
value of the projected tax increments for the maximum duration of District No. 2-10 permitted by the Tax
Increment Financing Plan, that the Plan conform to the general plan for the development or redevelopment
of the City as a whole; and that the Plan will afford maximum opportunity consistent with the sound needs
of the City as a whole, for the development of District No. 2-10 by private enterprise.
3.03. The City elects to make a qualifying local contribution in accordance with Minnesota
Statutes, Section 273.1399, subd. 6(d), in order to qualify District No. 2-10 for exemption from state aid
losses set forth in Section 273.1399.
3.04. The Council further finds, declares and determines that the City made the above findings
stated in this Section and has set forth the reasons and supporting facts for each determination in writing,
attached hereto as Exhibit A.
Section 4. Approval and Adoption of the Plan.
4.01. The Plan, as presented to the Council on this date, including without limitation the findings
and statements of objectives contained therein, is hereby approved, ratified, established, and adopted and
shall be placed on file in the office of the Economic Development Director.
4.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementatian of the Plan and to negotiate, draft, prepare and present to this Council for
its consideration all further plans, resolutions, documents and contracts necessary for this purpose.
4.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of
District No. 2-10, as described in the Plan, and to certify in each year thereafter the amount by which the
original net tax capacity has increased or decreased; and the City of Hopkins is authorized and directed to
forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify,
together with a list of all properties within District No. 2-10, for which building permits have been issued
during the 18 months immediately preceding the adoption of this resolution.
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The motion for the adoption of the foregoing resolution was duly seconded by Council member
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Dated: October 6, 1998
ATTEST:
~ '
ity Clerk
(Seal)
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1;XH1t311 A
RESOLUTION # 98-062
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax
Increment Financing District No. 2-10, ("District No. 2-10") as required pursuant to Minnesota Statutes, Section
469.175, Subdivision 3 are as follows:
Finding that the District No. 2-10 is an economic development district as defined in M. S., Section 469.174,
Subd. 12.
Tax Increment Financing District No. 2-10 is a contiguous geographic area within the City's
RedevelopmentProject No. 1, delineated in the Plan, for the purpose of financing economic development
in the City through the use of tax increment. District No. 2-10 consists of a portion of Redevelopment
Project No. 1 not meeting requirements for other types of tax increment financing districts, which is in the
public interest because it will facilitate construction of an office/warehouse which will discourage
commerce, industry, or manufacturing from moving their operations to another state or municipality; it will
increase employment in the state, and preserve and enhance the tax base of the state.
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonablyforeseeablefutuce and that the
increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the maximum
duration of District No. 2-10 permitted by the Plan.
The proposed development, in the opinion of the Ciry, would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future: This finding is supported by the fact
that the development proposed in this plan is an office/warehouse facility that meets the City's objectives
for economic development. The cost of site and public improvements makes development of the facility
infeasible without City assistance. The developer was asked for and provided a letter and a proforma as
justification that the prof ect would not have gone forward without tax increment assistance (see attachment
in Appendix E).
The proposed development will occur on property formerly used as a municipal solid waste disposal site.
Such use has created soil conditions on the property that will necessitate the utilization of costly and
extraordinary building methods to build on such property.
The increased market value of the site that could reasonable be expected to occur without the use of tax
incrementfinancing would be less than the increase in market value estimated to resultfrom the proposed
development after subtracting the present value of the projected tax increments for the maximum duration
of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of
site and public improvements add to the total development cost. Historically, site development costs in
this area have made development infeasible without tax increment assistance. Therefore, the City
reasonably determ fines that no other development of any kind is anticipated on this site without substantially
similar assistance being provided to the development. Accordingly, the increased market value anticipated
without tax increment assistance is $0.
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A comparative analysis of estimated market values both with and without establishment of Tax Increment
Financing District No. 2-10 and the use of tax increments has been performed as described above. If all
development which is proposed to be assisted with tax increment were to occur in District No. 2-10, the
total increased market value would be up to $2,776,440. The presentvalue of tax increments from District
No. 2-10 is estimated to be $482,750. It is the Council's finding that no developmentwith a market value
of greater than $2293,690 would occur without tax increment assistance in this district within 9 years.
This finding is based upon evidence from general past experience with the high cost of site and public
improvements in the general area of District No. 2-10 (see Cashflow in Appendix C).
Finding that the Tax Increment Financing Plan for District No. 2-10 conforms to the general plan for the
development or redevelopment of the municipality as a whole.
The Plan was reviewed by the Planning Commission on September 29, 1998. The Planning Commission
found that the Plan conforms to the general development plan of the City.
Finding that the Tax Increment Financing Plan for District No. 2-10 will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development ofRedevelopmentProject No.
1 by private enterprise.
The project to be assisted by District No. 2-10 will result in increased employment in the City and the State
of Minnesota, increased tax base of the State, and add a high quality development to the City.
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