1996-067RESOLUTION NO. 96-67
CITY OF HOPKINS
COUNTY OF HENNEPIN
STATE OF MINNESOTA
follows:
RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT
PROJECT NO. 1, ESTABLISHING TAX INCREMENT FINANCING DISTRICT N0.2-9,
MODIFYING TAX INCREMENT FINANCING DISTRICT NO. 1-1, MODIFYING TAX
INCREMENT FINANCING DISTRICT N0.2-1, AND MODIFYING TAX INCREMENT
FINANCING DISTRICT NO. 2-4, AND APPROVING AND ADOPTING THE TAX
INCREMENT FINANCING PLANS RELATED THERETO, LOCATED WITHIN
REDEVELOPMENT PROJECT NO. 1 .
BE TT RESOLVED by the City Council (the "Council") of the City of Hopkins, Minnesota (the "City"), as
Section 1. Recitals.
1.01. It has been proposed that the City modify the Redevelopment Plan for Redevelopment Project No.
1, establish Tax Increment Financing District No. 2-9, modify Tax Increment Financing District No. 1-1, modify Tax
Increment Financing District No. 2-1, and modify Tax Increment Financing District No. 2-4, and approve and adopt
the Tax Increment Financing Plans relating thereto, located within Redevelopment Project No. 1, all pursuant to and
in accordance with Minnesota Statutes, Sections 469.001 through 469.047, inclusive; and Minnesota Statutes,
Sections 469.174 through 469.179, inclusive; and
1.02. The Council has investigated the facts and has caused to be prepared a Modified Redevelopment Plan
for Redevelopment Project No. 1, the proposed Tax Increment Financing Plan for Tax Increment Financing District
No. 2-9, a modified Tax Increment Financing Plan for Tax Increment Financing District No. 1-1, a modified Tax
Increment Financing Plan for Tax Increment Financing District No. 2-1, and a modified Tax Increment Financing
Plan for Tax Increment Financing District No. 2-4 (the "Plans").
1.03. The City has performed all actions required by law to be performed prior to the modification of
Redevelopment Project No. 1, the establishment of Tax Increment Financing District No. 2-9, the modification of
Tax Increment Financing District No. 1-1, the modification of Tax Increment Financing District No. 2-1, and the
modification of Tax Increment Financing District No. 2-4, and the adoption of the Plans relating thereto, including,
but not limited to, notification of Hennepin County and School District No. 270 having taxing jurisdiction over the
property to be included in Tax Increment Financing District No. 2-9, Tax Increment Financing District No. 1-1, Tax
Increment Financing District No. 2-1, and Tax Increment Financing District No. 2-4, a review by the City Planning
Commission of the proposed Plans and the holding of a public hearing upon published notice as required by law.
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Section 2. Findings for the Modification of the Redevelopment Plan for Redevelopment Project No.
1, the Establishment of Tax Increment Financing District No. 2-9, the Modification of Tax
Increment Financing District No. 1-1, the Modification of Tax Increment Financing District
No. 2-1, and the Modification of Tax Increment Financing District No. 2-4, and the
Approval of the Tax Increment Financing Plans relating thereto.
2.01. The Council hereby finds that Tax Increment Financing District No. 2-9 is a redevelopment district.
2.02. The Council hereby finds that the modification of the Redevelopment Plan for Redevelopment
Project No. 1, the establishment of Tax Increment Financing District No. 2-9, the modification of Tax Increment
Financing District No. 1-1, the modification of Tax Increment Financing District 2-1, and the modification of Tax
Increment Financing District 2-4, and the approval of the Tax Increment Financing Plans relating thereto, are
intended and, in the judgement of this Council, the effect of such actions will be, to provide an impetus for
redevelopment consistent with the public purposes and objectives specified in the Plans.
2.03. The Council further finds that the proposed development, in the opinion of the Council, would not
occur solely through private investment within the reasonably foreseeable future 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 the district permitted by the plan and, therefore, the use
of tax increment financing is deemed necessary; that the Plans conform to the general plan for the development or
redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound
needs of the City as a whole, for the development of Tax Increment Financing District No. 2-9 by private enterprise.
2.04. The Council further finds, declares and determines that the City has made the findings based on the
reasons and supporting facts set forth in Attachment A attached hereto, and in the Plans.
2.05 The City elects to make a qualifying local contribution in accordance with Minnesota Statutes,
Section 273.1399 Subd. 6(d), and therefore anticipates that the Tax Increment Financing District will be exempt from
state aid loss.
Section 3. A~nroval of the Plans.
3.01. The modifications to the Redevelopment Plan for Redevelopment Project No. 1, the establishment
of the Tax Increment Financing Plan for Tax Increment Financing District No. 2-9, the modification of the Tax
Increment Financing Plan for Tax Increment Financing District No. 1-1, the modification of the Tax Increment
Financing Plan for Tax Increment Financing District No. 2-1, and the modification of the Tax Increment Financing
Plan for Tax Increment Financing District No. 2-4, are hereby approved and adopted, and shall be placed on file in
the office of the City Manager.
3.02 Tax Increment Financing District No. 2-4 is hereby decertified. The parcel to be included within
Tax Increment Financing District No. 2-9 shall be deleted from Tax Increment Financing District No. 2-4.
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3.03. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with
the implementation of the Plans and for this purposed to negotiate, draft, prepare and present to this Council for its
consideration all further plans, resolutions, documents and contracts necessary for this purpose.
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: September , 1996
ATTEST:
(Seal)
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ATTACHMENT A
RESOLUTION #96-67
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plans for Tax
Increment Financing Districts Nos. 2-9, 1-1, 2-1, and 2-4 as required pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 2-9 is a redevelopment district as defined in Minnesota Statutes,
Section 469.175, Subd. 10.
District No. 2-9 consists of 1 parcel of land and adjacent and internal rights-of-way The District qualifies as a
redevelopment district as defined in Minnesota Statutes, section 469.174, subd. 10, based on the findings as found in
Exhibit C in the Tax Increment Financing Plan for Tax Increment Financing District No. 2-9.
Tax Increment Financing District No. 1-1, Tax Increment Financing District No. 2-1 and Tax Increment Financing
District No. 2-4 are existing tax increment financing districts. The modifications to Tax Increment Financing Districts
Nos. 1-1 and 2-1 involve changes in the project budgets and clarification of project activities. The modification to Tax
Increment Financing District No. 2-4 involves decertifying the District. The modifications do not change the
qualification under the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 through 469.179.
2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private
investment within the reasonably foreseeable future 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 the district permitted by the plan.
Due to the high cost of redevelopment on parcels currently occupied by substandard buildings and the cost of financing
the proposed improvements, the projects contemplated in the Plans are feasible only through assistance, in part, from
tax increment financing. This analysis is based on city and staff analysis of property within the districts.
A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing
District No. 2-9 and the use of tax increments has been performed as described above. Such analysis is contained in
Appendix C of the Tax Increment Financing Plan for Tax Increment Financing District No. 2-9 and indicates that the
increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated
market value of the site absent the establishment of Tax Increment Financing District No. 2-9 and the use of tax
increments (See Appendix C).
3. Finding that the Tax Increment Financing Plans conform to the general plan for the development or redevelopment
of the municipality as a whole.
The site is appropriately zoned. The Tax Increment Financing Plans for Tax Increment Financing District No. 2-9, Tax
Increment Financing District No. 1-1, Tax Increment Financing District No. 2-1, and Tax Increment Financing District
No. 2-4 have been reviewed by the Planning Commission and been found to conform to the general development plan
of the City.
4. Finding that the Tax Increment Financing Plans will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for the development of Redevelopment Project No. 1 by private enterprise.
The establishment of Tax Increment Financing District No. 2-9 and the modifications of Tax Increment Financing
Districts Nos. 1-1, 2-1 and 2-4 will result in the facilitation of development and redevelopment in the City by private
enterprise. Without the assistance that will be made available as a result of the actions being taken by the City, private
enterprise has not, and in the opinion of the Council, would not undertake the redevelopment of Tax Increment Financing
District No. 2-9.
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