Review-Proposed Modification PlanPlanning Commission Report
August 11, 1986
Review Of The Proposed Modification Of The
Redevelopment Plan and Review Of The Proposed
Modification #4 Of The Tax Increment Finance Plan
For The Hopkins HRA Of Hopkins, MN
INTRODUCTION: The purpose of this report is to
review and recommend the modification of the
Redevelopment Plan and Modification #4 of the Tax
Increment Finance Plan for the Original Hopkins
CBD Redevelopment Tax Increment. District (North
Sector Project).
BACKGROUND: The staff is near completion of the
parking management system. The data available
will enable staff to determine future parking
needs. The determination of parking needs in
connection with a proposed redevelopment projects
can be a critical factor when negotiating a
development agreement that calls for the placement
of a parking structure near or at the site of
development. The modification of the plan will
allow the HRA /City to use tax increment financing
to finance a parking structure either in whole or
in part.
ANALYSIS: The modification of the tax increment
financing plan is a routine procedure for a City
to implement in order to facilitate
redevelopment. It is viewed as being less
controversial because the estimated impact upon
other taxing jurisdictions is slight even if one
or two parcels of property would have to be
acquired.
Specifically, the modification calls for the
structure to be a multi -level facility to be
located within the CBD. It may create an
additional 300 to 500 parking spaces. The
modification also identifies properties that have
been considered in the past by Staff for purchase
in order to facilitate a parking ramp. The plan
does not allow for further bonding for financing
the structure.
No. Item A
ALTERNATIVES:
1) Review and adopt the resolution.
2) Reject the modification.
RECOMMENDATION: Alternative number one, adopt the
resolution and recommend the modification.
Respectfully submitted,
`Yl .
Kevin G. Maas
Community Development Analyst
MODIFICATION #4 OF THE FINANCING PLAN FOR THE ORIGINAL HOPKINS
CBD
REDEVELOPMENT TAX INCREMENT DISTRICT (NORTH SECTOR PROJECT)
Modification #3 to the Hopkins CBD Redevelopment Project Boundary
8
Create Tax Increment District & Adopt Financing Plan For The CBD
South Sector Project
Modification Of The Financing Plan For The Original Hopkins
Redevelopment Tax Increment District (North Sector Project)
August 11, 1986
Prepared by:
AS ADDENDUM A TO THE DOCUMENT TITLED:
DATE: AUGUST 11, 1986
Dated: November 15, 1985
Hopkins Housing and Redevelopment Authority
1010 1st Street South
Hopkins, Minnesota 55343
ADDENDUM A - MODIFICATION ##d OF THE FINANCING PLAN FOR THE
ORIGINAL HOPKINS CBD REDEVELOPMENT TAX INCREMENT DISTRICT; (NORTH
SECTOR PROJECT)
III. MODIFICATION OF THE FINANCING PLAN FOR THE ORIGINAL HOPKINS
CBD REDEVELOPMENT ?AX INCREMENT DISTRICT;
(NORTH SECTOR PRO.. CT)
A. DESCRIPTION OF THE PROJECT (Modified)
B. LAND USE CHANGES
C. DEVELOPMENT PROGRAM (Modified)
ADDITIONS
D. STATUTORY AUTHORITY
E. PROBLEM ASSESSMENT
F. ESTIMATED COSTS
G. FINANCING
H. IMPACT UPON OTHER TAXING JURISDICTIONS
A. DESCRIPTION OF THE PROJECT
The Housing and Redevelopment Authority on behalf of the City of
Hopkins is proposing to utilize tax increment financing to
finance the construction of a parking structure (ramp). The site
will be located within the Hopkins Central Business District
(CBD) Redevelopment Tax Increment Finance District approved by
the City Council on December 7, 1976. The parking structure
proposed is to be multi -level facility and provide an additional
300 to 500 parking spaces. The municipal facility will be
part of the CBD's parking management system. Portions of the
system may be managed by private enterprise or by the City of
Hopkins.
C. DEVELOPMENT PROGRAM
1. Property to be Aquired - Certain parcels located within the
tax increment district may be aquired in order to facilitate
construction of the parking structure. Exact parcels will be
chosen when a final location is established. Parcels in
consideration may include:
2. Same
3. Same
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D. STATUTORY AUTHORITY
The proposed activities will be undertaken in order to eliminate
blighting influences which impede potential development within
the Redevelopment Area and to provide maximum opportunity for
redevelopment by private enterprise in a manner consistent with
the needs of the City of Hopkins as a whole and to encourage
private rehabilitation of structures within the area. To
accomplish financially feasible development or redevelopment the
Housing and Redevelopment Authority in and for the City_ of
Hopkins has been given certain powers pursuant to Minnesota
Statutes, 462.411 et seq. In addition, the Authority is not
prohibited in the use of of revenues derived from tax increments
for the construction or renovation of a parking structure,
pursuant to Minnesota Statutes, Section 273.75, Subd. 4,
limitation on use of tax increment.
E. PROBLEM ASSESSMENT
The City has not been able to interest developers in a
Redevelopment or Development project within the CBD because of
inadequate parking for the desired projects. The problems that
existed in 1976 still exist. Refer to Section II, Sudv. A - L,
of the Original Redevelopment Program. The improvements made
since the original plan did not succeed in adequate parking for
the current redevelopment and development plans.
F. ESTMATED COSTS
The proposed constructuion cost is etimated at $3,000 to $4,500
per parking space. Costs could exceed or depending upon the
availibility of materials. Maximum expenditures for a single
ramp will not exceed $ 3,000,000 in tax increment revenues.
G. FINANCING
The proposed parking structure will be financed by revenues
derived from tax increment in whole or in part. A portion of the
costs may be assessed pursuant to Minnesota Statutes, Chapter
429, Section 459.14. Additional financing techniques other than
tax increment and assessments will be considered by the HRA.
H. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
The proposed parking structure is anticipated not to have any
effect upon other taxing jurisdictions. A small impact would
result if any property was to be acquired for the parking
structure.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO: Z86 -2
A RESOLUTION RECOMMENDING APPROVAL
OF AN AMENDMENT TO THE REDEVELOPMENT' PLAN
FOR THE CENTRAL BUSINESS DISTRICT
ENTITLED "HOPKINS CBD REDEVELOPMENT PROGRAM"
WHEREAS it has been the intent and desire of the City of Hopkins
(the City) for many years to improve conditions in the Central Business
District and surrounding area, and
WHEREAS the Housing and Redevelopment Authority (the Authority)
and the City have previously approved a redevelopment plan for the Central
Business District of Hopkins, Minnesota entitled "Hopkins CBD Redevelopment
Program" (the Plan), and
WHEREAS such plan has been revised from time to time to facilitate
additional development and public improvements within the Central Business
District and surrounding area, and
WHEREAS the Authority has now submitted an amendment to the plan
entitled "Modification #4 Of The Financing Plan For The Original Hopkins CBD
Redevelopment Tax Increment District: (North Sector Project)" dated August 11,
1986, and has requested the written opinion of the Zoning and Planning Commission
on the Plan, all pursuant to Minnesota Statutes 462.515, and
WHEREAS, the Zoning and Planning Commission has now studied and con-
sidered said amendment to the Plan.
NOW, THEREFORE BE IT RESOLVED, by the Zoning and Planning Commission
of the City of Hopkins, that, having studied and considered the amendment to
the Plan, the Zoning and Planning Commission by this resolution, advises the
City Council, the Authority, and all interested persons, that it is the opinion
of the Zoning and Planning Commission that:
1. The Hopkins Zoning and Planning Commission finds the proposed
amendment to the plan consistent with the overall development
plan and goals for the City.
2. The Hopkins Zoning and Planning Commission finds the proposed
amendment consistent with changes proposed to the 1990 Compre-
hensive Plan.
3. The Hopkins Zoning and Planning Commission recommend to the
Hopkins City Council that the proposed amendment be adopted.
Adopted this 26 day of August, 1986.
James Folk, Chairman