1996-023CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
• RESOLUTION NO. 96-23
RESOLUTION APPROVING A TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT
REDEVELOPMENT DISTRICT NUMBER 2-8 PURSUANT
TO MINNESOTA STATUTES, SECTIONS 469.174-.179.
WHEREAS, the Housing and Redevelopment Authority In and For the City of Hopkins
(the "Authority") and the City of Hopkins, Minnesota (the "City"), have the legal authority to
create redevelopment projects pursuant to Minnesota Statutes, Section 469.001 to 469.047,
inclusive.
WHEREAS, The Authority and the City have created the Authority's Redevelopment
Projects Numbers 1 and 2 (collectively, the "Project"); and
WHEREAS, pursuant to Minnesota Statutes, section 469.174 to 469.179, the Authority
and the City have the legal authority to create tax increment financing districts within
redevelopment projects to finance the public redevelopment costs of such redevelopment
projects; and
WHEREAS, the Authority has caused to be prepared a tax increment financing plan (the
``Tax Increment Plan") in connection with the proposed creation of its Tax Increment Financing
District Number 2-8 (the '`District"); and
WHEREAS, the creation of the Project and District allows the Authority to redevelop a
parcel of property containing substandard buildings and improvements and to assist in the
development of an approximately 24,000 square foot office/warehouse facility, thereby creating a
number of employment positions within the City and the State of Minnesota; and
WHEREAS, the authority has submitted a statemen~ of the fiscal impact ut~ creating the
District to the School Board of the affected school district and to the F3oard of Commissioners of
Hennepin County as required pursuant to IVlinnesota Statutes, section ~469.17~. subd. ?.
WHEREAS, the City Council leas held a public hearin~~ on the questions of approval of
the Tax Increment Plan as required by law.
NOW, THEREFORE, be it hereby resolved by the City Council of the City of Hopkins
(the "Council") as follows:
(a) The Council hereby adopts the municipal findings and reasons contained in the
Tax Increment Plan and finds and determines that the creation of the District is in
the public interest and to the benefit of the health, safety and welfare of the City.
(b) That the Tax Increment Plan has been reviewed by the City Council and the
City's Planning Commission and has been found to conform to the general plan
for the development of the City as whole.
(c) "That the Tax Increment Plan will afford maximum opportunity, consistent with
the sound needs of the City as a whole for the development of the Project and
District by private enterprise. The plan will allow the Authority to assist in the
development by private enterprise of property that is currently underutilized and
contains buildings and improvements that are substandard and in need of
substantial renovation or removal into an office/warehouse facility offering
employment opportunities within the City.
(d) That the District is a redevelopment tax increment financing district as defined in
Minnesota Statutes, section 469.174, subd. 10. The District contains one parcel of
property and that parcel is occupied by buildings and improvements. 100% of the
buildings on the parcel in the District are structurally substandard as defined in
Section 469.174, subd. 10.
(e) That the proposed development, in the opinion of the Council, would not occur
solely through private investment within the reasonably foreseeable future, that
the land in the Project would not be made available without the financial
assistance to be sought, 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 Tax Increment Plan. Due
to the high cost of land acquisition and preparation and the competition from other
states and municipalities to attract new industry, the use of tax increment to
induce private industry to undertake the proposed development in the City is
deemed to be necessary. [t is estimated that the development ~~ill result in an
increase in the market value of the site of approximately $637.0 ~~ more than its
present market value with the use of tax increment. The City has no reason to
believe that the site would be developed in the Foreseeable future resnltin~~ in an
increase in the market value without the use ol~ tax increment. Therefore, the
estimated increase in the market value ($637.0>>). minus the present value of the
tax increment to be generated ($353.976). is approximately $243.09 greater than
the increase in market value expected to occur without the use of tax increment
($0.00).
(t) The Council makes the election to make the local contribution defined in
Minnesota Statutes, Section 273.1399, subd. 6(d).
(g) The Tax Increment Plan is hereby approved and adopted by the Council in
substantially the form presented to the Council.
(h) The Authority is hereby authorized to file a copy of the and Tax Increment Plan
with the Minnesota Department of Revenue and to take all actions necessary to
implement the provisions of the Redevelopment Plan and Tax Increment Plan.
Approved by the City Council of the Citv ~ opkins this 19"' day of March, 1996.
Charles D. Redepenning, or
ATTEST; ~ ~ I~
ames A. Genellie, City Clerk