IV.6. Resolution Approving Laws of Minnesota 2023, Chapter 64, Article 8, Section 2, Relating to Tax Increment Financing District 2-11; Elverum
CITY OF HOPKINS
City Council Report 2023-138
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Kersten Elverum, Director of Planning & Development
Date: December 19, 2023
Subject: Approve Special TIF Law for 2-11
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve Resolution 2023-051 Approving Laws of Minnesota 2023,
Chapter 64, Article 8, Section 2, Relating to Tax Increment Financing District 2-11
OVERVIEW
The City of Hopkins established redevelopment Tax Increment Financing (TIF) District
No. 2-11 in 2003. Due to market conditions, development did not occur within the
allowed timelines under State Statute and the City of Hopkins pursued legislation to
provide additional four years to realize qualified expenditures. In 2008, this request was
granted through special legislation, but with an additional restriction on the use of funds
outside of the district, often referred to as “pooling.” The pooling limits were capped at
20% rather than the 25% allowed in all other redevelopment districts.
Recently, the City of Hopkins went back to the Legislature and requested that the
percent of funds that could be spend outside of the district not be restricted to 20% but
to revert back to the 25% allowed under general TIF law. The State of Minnesota
approved a special law providing that up to 25% of the total tax increment from the TIF
District can be expended outside the TIF District for housing or redevelopment activities
as provided in Laws of Minnesota 2023, Chapter 64, Article 8, Section 2.
In the past, TIF pooling from this District has been used to right-size development
assistance for Ovation Apartments and Hallon 1&2. With the reversion back to
standard pooling limits, the City of Hopkins may be able to capture some additional
funds to use towards redevelopment efforts before the District expires in 2029. In order
to accept the special legislation and authorize its use, the City Council must pass a
resolution and file a certificate with the State of Minnesota.
SUPPORTING INFORMATION
• Resolution 2023-051
• Exhibit A
Planning & Development
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2023-051
APPROVING LAWS OF MINNESOTA 2023, CHAPTER 64,
ARTICLE 8, SECTION 2, RELATING TO TAX INCREMENT
FINANCING DISTRICT 2-11
WHEREAS, the City of Hopkins, Minnesota (the “City”) has duly established Tax
Increment Financing District No. 2-11 (the “TIF District”) within the Project Area in
accordance with Minnesota Statutes, Sections 469.174 through 469.1794, as amended
(the “TIF Act”) and the Housing and Redevelopment Authority in and for the City of
Hopkins, Minnesota administers such TIF District; and
WHEREAS, the Legislature of the State of Minnesota passed a special law
providing that the duration of the TIF District may be extended for up to four additional
years, providing that up to 25% of the total tax increment from the TIF District can be
expended outside the TIF District for housing or redevelopment activities and providing
that up to 28% of the total amount of increment may be spent on activities located
outside the area of the TIF District, all as provided in Laws of Minnesota 2023, Chapter
64, Article 8, Section 2 (the “2023 Special Law”); and
WHEREAS, pursuant to Minnesota Statutes, Section 645.021, subdivisions 2
and 3, the 2023 Special Law is effective upon approval by a majority vote of the
governing body of the City and the filing of a certificate, including a copy of this
resolution, in the form prescribed by the Minnesota Attorney General with the Minnesota
Secretary of State, as set forth in Exhibit A; and
WHEREAS, the City Council of the City has determined that it is in the best
interest of the City and its residents to approve the Special Law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hopkins, Minnesota, as follows:
1. The 2023 Special Law is approved.
2. The City Clerk, as the chief clerical officer of the City, is hereby authorized
and directed to file the certificate and a copy of this resolution, as approved, with the
Minnesota Secretary of State as required by Minnesota Statutes, Section 645.021,
subdivision 3.
3. City staff are authorized and directed to take any additional action
necessary to implement the 2023 Special Law.
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Adopted by the City Council of the City of Hopkins, Minnesota this 19th day of
December, 2023.
Patrick Hanlon, Mayor
ATTEST:
Amy Domeier, City Clerk
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EXHIBIT A
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