HomeMy WebLinkAbout1990-03-26_SPECIAL MEETINGSAGENDA
SPECIAL JOINT MEETING
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
AND EDINA CITY COUNCIL _
MARCH 26, 1990
7:00 P.M.
(Convene Joint HRA /Council Meeting)
ROLLCALL
I. PUBLIC HEARING - 1990 AMENDMENT TO 50TH AND FRANCE REDEVELOPMENT PLAN
A. Resolution Approving 1990 Amendment to 50th &- 'France Redevelopment
Plan and Requesting the Approval of the City Council (HRA)
B. Resolution Approving 1990 Amendment to 50th & France Redevelopment
Plan and Making Findings With Respect Thereto and Pledging Tax
Increment to Certain Outstanding Bonds of the City (Council)
II. ADJOURNMENT
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REPORT/RECOMMENDATION
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To: CITY COUNCIL AND HRA
From:
GORDON L. HUGHES
ASSISTANT CITY MANAGER
Date: MARCH 26, 1990
Subject:
AMENDMENT TO 50TH &
FRANCE REDEVELOPMENT PLAN
Recommendation:
Agenda Item # -I--
Consent ❑
Information Only ❑
Mgr. Recommends ❑
To HRA
❑
To Council
Action ❑
Motion
[�
Resolution
~❑
Ordinance
El
Discussion
Adopt attached Resolutions approving amendment to the 50th & France
Redevelopment Plan.
Info /Background:
Attached is the proposed amendment to the 50th & France Redevelopment Plan.
The effect of this proposed plan amendment is two -fold:
1. The amendment would allow the use of tax increments to finance
the public improvement project at 50th & France which is
estimated to cost $3,000,000.
2. The proposed amendment would allow the pooling of tax increments
from the 50th & France Redevelopment District and the Southeast
Edina Redevelopment District. This amendment would permit, but
not obligate the City to use pooled increments from one district
to the other. '
Notice of the March 26,.1990, public hearing was given to Hennepin County
Board of Commissioners and the Board of Education for the Edina School
District on February 23, 1990. They have also been provided with copies of
the proposed amendment.
r
Commissioner introduced the following
resolution and moved its adoption:
RESOLUTION APPROVING 1990 AMENDMENT TO
50TH & FRANCE REDEVELOPMENT PLAN AND
REQUESTING THE APPROVAL OF THE CITY COUNCIL
BE IT RESOLVED, by The Housing and Redevelopment Authority of
Edina, Minnesota (the "HRA"), as follows:
I. Proposed Amendment. The HRA has approved a redevelopment
plan, as defined in Minnesota Statutes, Section 469.002, subdivision 16, designated as
the 50th & France Redevelopment Plan (the "Redevelopment Plan "), and a
redevelopment project to be undertaken pursuant thereto, as defined in Minnesota
Statutes, Section 469.002, subdivision 14 (the "Redevelopment Project "), and that in
order to finance the public redevelopment costs to be incurred by the I-IRA in
connection with the Redevelopment Plan and -the Redevelopment Project, the
Redevelopment Plan established a tax increment financing district, as defined in
Minnesota Statutes, Section 469.1' , subdivision 9 (the "District ") which is
designated by Hennepin County as Tax Increment Financing District No. 1200. It has
been proposed that the HRA approve an amendment to the Redevelopment Plan
which is entitled "1990 Amendment to the 50th & France Redevelopment Plan"
(the "1990 Amendment ") to authorize the expenditure of tax increment to finance
additional public improvements in the area subject to the Redevelopment Plan, to
expand the area subject to the Redevelopment Plan to include the area subject to the
Southeast Edina Redevelopment Plan of the HRA (the "Southeast Edina
Redevelopment Plan ") and to authorize the expenditure of tax increment revenue
derived from the District to pay for public redevelopment costs incurred and to be
incurred by the HRA and the City of Edina in connection with the Southeast Edina
Redevelopment Plan and redevelopment projects undertaken pursuant thereto and
to pay debt service on bonds issued and to be issued to finance such public
redevelopment costs.
2. A1212roval of 1990 Amendment. The 1990 Amendment has been
presented to this Board and is ordered placed on file in the office of the Executive
Director of the HRA. The 1990 Amendment is hereby approved. As stated in the
1990 Amendment, the 1990 Amendment further serves the original goals and
purposes of the City and HRA in approving the Redevelopment Plan and the.
Southeast Edina Redevelopment Plan which is of benefit to all residents of the City.
3. Pledge Agreement, The officers of the HRA are authorized to enter
into an agreement or agreements with the City to evidence the pledge of tax
increments from the District to pay debt service on bonds or other obligations issued
and to be issued by the City to finance public redevelopment costs of the Southeast
Edina Redevelopment Plan.
4. Presentation to City Council. The 1990 Amendment hereby
approved shall be presented to the City Council for a public hearing thereon
pursuant to Minnesota Statutes, Section 4669.029, subdivision 6 and Section 469.175,
subdivision 4.
Dated the 26th day of March, 1990.
Attest:
Executive Director
2
Chairman
Member introduced the following resolution and
moved its adoption:
RESOLUTION APPROVING 1990 AMENDMENT TO
50TH & FRANCE REDEVELOPMENT PLAN AND
MAKING FINDINGS WITH RESPECT THERETO AND
PLEDGING TAX INCREMENT TO CERTAIN
OUTSTANDING BONDS OF THE CITY
BE IT RESOLVED by the City Council of the City of Edina, Minnesota as
follows:
1. The Commissioners of the Housing and Redevelopment Authority
of Edina, Minnesota (the "HRA "), and the City of Edina, Minnesota (the "City "),
have previously approved the Redevelopment Plan (the "Redevelopment Plail ")
and a Redevelopment Project (the "Redevelopment Project") to be undertaken
pursuant thereto, and in order to finance the- public redevelopment costs to be
incurred by the City and the HRA in connection with the Redevelopment flan and
the Redevelopment Project, the Redevelopment Plan established a tax increment
financing district (the "District ") which is designated by Hennepin County as Tax
Increment Financing District No. 1200. The Board of Commissioners of the HRA
has approved an amendment to the Redevelopment Plan which is entitled "1990
Amendment to the 50th & France Redevelopment Plan" (the 1990 Amendment ").
The 1990 amendment authorizes additional public improvements to be constructed
in the area subject to the Redevelopment Plan, expands the area subject to the
Redevelopment Plan to include the area subject to the Southeast Edina
Redevelopment Plan of the HRA (the "Southeast Edina Redevelopment Plan ") and
authorizes the expenditure of tax increment revenues derived front the District to
pay the costs of such public improvements and to pay for public redevelopment'
costs incurred and to be incurred by the 14RA and the City in connection with the
Southeast Edina Redevelopment Plan and redevelopment projects undertaken
pursuant thereto and to pledge tax increment revenue from the District to the
payment of debt service on bonds heretofore and hereafter issued by the City to
finance such costs. +
2. This Council on March 26, 1990, held a public hearing on the 1990
Amendment after notice of the public hearing was published in the official
newspaper of the City not less than ten (10) days prior to the date of the hearing. At
such public hearing all persons desiring to be heard with respect to the 1990
Amendment were given an opportunity to express their views with respect thereto.
3. The 1990 Amendment is hereby approved. The 1990 Amendment
serves to meet the goals and objectives of the Redevelopment Plan and the
Southeast Edina Redevelopment Plan. Pursuant to Minnesota Statutes, Section
469.175, subdivision 4, and for the reasons set forth in the Redevelopment Plan, as
amended by the 1990 Amendment and the Southeast Edina Redevelopment Plan it
is hereby found that:
(A) The proposed development to be undertaken in accordance
with the Redevelopment Plan, as amended by the 1990 Amendment
and the Southeast Edina Redevelopment Plan, in the opinion of this
Council would not occur solely through private investment within the
reasonably foreseeable future and therefor the use of tax increment
financing is deemed necessary.
(B) The Redevelopment Plan, as amended by the 1990
Amendment, conforms to the general plan for the development of the
City as a whole.
(C) The Redevelopment Plan, as amended by the 1990
Amendment, will afford maximum opportunity Consistent with the
sound needs of the City as a whole for the development of the area
subject to the Redevelopment Plan and the Southeast Edina
Redevelopment Plan.
4. Pledge of Tax Increment. The City has previously issued and there is
presently outstanding the following bonds to finance public redevelopment costs
incurred by the City and I-IRA pursuant to the Southeast Edina Redevelopment flan
(the "Bonds "):
Original
Principal
Title Dated Amount
a. G.O. Tax Increment October 1, 1981 $ 4,500,000
Bonds, Series 1981
b. G.O. Tax Increment August 1, 1986 $ 4,000,000
Bonds, Series 1986A -
C. G.O. Tax Increment October 1, 1988 $10,175,000
Bonds, Series 1988
d. G.O. Taxable Tax October 1, 1988 $ 5,100,000
Increment Bonds,
Series 1988
2
e. G.O. Taxable Tax
Increment Bonds,
Series 1989
f. G.O. Tax Increment
Bonds, Series 1989
g. G.O. Tax Increment
Refunding Bonds,
Series 1989
April 1, 1989 $ 5,300,000
April 1, 1989 $ 8,425,000
November 1, 1989 $12,970,000
The City hereby pledges to the Bonds tax increment revenue derived from the
District received by the City from the HRA to pay the Bonds. The officers of the City
are hereby authorized to enter into an agreement or agreements with the HRA to
evidence such pledge of the tax increment revenue from the District to the payment
of debt service on the Bonds.
Passed by the Council this 26th day of March, 1990.
Mayor
Attest:
City Clerk
The motion for the adoption of the foregoing resolution was duly
seconded by Member
following voted in favor thereof:
and upon vote being taken thereon, the
and the following voted against the same.
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor, whose signature was attested by the City Clerk.
3
i
1990 AMENDMENT TO THE _.
50TH & FRANCE REDEVELOPMENT PLAN
of
THE HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
Table of Contents
I. Introduction
A. Recitals and St.at.ement. of Authority
B. Definitions
II. Description of Improvements
III. Financing of Improvements
IV. Statement of Need and Objectives
V. Use of Tax_Increment for Payment of Public Redevelopment
Costs of Southeast. Edina Redevelopment Plan-
Vi. Estimate of Fiscal and Economic Impact of 1990 Amendment.
A. Present. Status of District.
B. If .Costs of Improvements and Public Redevelopment.
Costs of the Southeast Edina Redevelopment. Plan Not
Paid For With Tax Increment.
C. If Costs of Improvements and Public Redevelopment.
Costs of the Southeast. Edina Redevelopment. Plan Paid
With Tax Increment.
VII. Duration of District.; Captured Tax Capacity at Completion
VIII. Additional Amendments to Plan
IX. Original Plan
I. INTRODUCTION
A. Recitals and Statement. of Authority. The
Commissioners of, the HRA and the City Council have previously
approved the 50th & France Redevelopment. Plan, which established
a tax _ ^crement financing district as defined in Minnesota
Statutes, Section 469.174, subdivision 9, and has approved
amendments to the Redevelopment Plan. It. has been proposed
that (i) the HRA construct additional public improvements in
the area subject to the Redevelopment. Plan and finance all
or a portion of the cost of such public improvements with tax
increments, (ii) additional property be included in the area
subject to the Redevelopment. Plan, and (iii) public
redevelopment costs incurred and to be incurred by the City
and HRA in connection with the development and redevelopment
of such additional property be paid from tax increments. This
1990 Amendment supplements and amends the 50t.h & France
Redevelopment Plan to authorize the expenditure of tax increment
revenues to finance such public improvements and to expand
the area included in the Redevelopment. Plan and permit the
expenditure of tax increment from the 50th and,France
Redevelopment. Plan area with respect to improvements to such
additional property included in the Redevelopment Plan. This
1990 Amendment does not enlarge the tax increment financing
district established by the 50th & France Redevelopment Plan.
This 1990 Amendment is established by action of the
Commissioners of the HRA and the City Council of the City,
pursuant to Minnesota Statutes, Sections 469.001 to 469.047,
and Section 469.175, subdivision 4, and this 1990 Amendment
is approved by such bodies pursuant. to Minnesota Statutes,
Sections 469.001 to 469.047, and Section.469.175, subdivision
4.
B. Definitions. Each of the words and terms defined
in this Section shall for all purposes of this 1990 Amendment.,
have the meanings given to them in this Section:
"Additional Property" means the area presently
included in the Southeast. Edina Redevelopment. Plan, which is
generally located in the extreme southeast corner of the
corporate limits of the City.
Minnesota." City" means the City of Edina, Hennepin County,
"District. means the existing tax increment financing.
district created by the Plan and designated by Hennepin County
as number 1200.
"HRA" means the Housing and Redevelopment Authority
of Edina, Minnesota.
W
"Improvements" means the additional public
improvements proposed to be undertaken in the Plan Area as
described in Section II hereof.
"1990 Amendment." means this 1990 Amendment to the
50th & France Redevelopment Plan.
"Original Plan" means the 50th & France Redevelopment
Plan, as heretofore amended and supplemented by the HRA and
the City Council pursuant to law.
"Plan" means the Original Plan as supplemented and
amended by this 1990 Amendment and as further supplemented
and amended from time to time by the HRA and City Council.
the Plan. "Plan Area" means the area in the City subject. to
"Southeast. Edina Redevelopment. Plan" means the
Southeast. Edina Redevelopment. Plan, as heretofore amended and
supplemented by the HRA and City Council.
"Tax Increment "'means tax increment payable to the
HRA from the District in accordance with Minnesota Statutes,
Section 469.042.
II. DESCRIPTION OF IMPROVEMENTS
The Improvements include the following public
improvements in the Plan Area:
Sidewalk Renovation
Additional Parking Facilities
Street.scaping
The t'ot'al cost of the Improvements (including administrative
expenses of the City and HRA) is estimated to be $3,080,000.
III. FINANCING OF IMPROVEMENTS
The use of Tax Increment to pay the costs of the
Improvements is hereby authorized. Such costs may be paid
directly from Tax Increment, or may be paid indirectly from'
Tax Increment, by the payment of debt service on bonds to
be issued.by the City to finance such cost, or by the payment .
of debt service on a loan or loans made by the City to the
HRA to finance such cost. Any such bonds issued by the City
or loan made by the City will be repaid, with interest, from
the Tax Increment. It. is presently intended that the City
will issue bonds pursuant to Minnesota Statutes, Section
469.178, subdivision 2, to finance the Improvements in the
aggregate principal amount of approximately $3,080,000.
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Other than the bonds, it is not expected that any obligations
will be issued by the City or HRA to finance the costs of
the Improvements. Any portion of the costs of the Improvements
not paid from Tax Increment. will be paid from special assessments
levied upon benefited properties.
IV. STATEMENT OF NEED AND OBJECTIVES
Because of a recent legislative change eliminating
the capture of state paid homestead credit as tax increment,
the tax increment to be derived from the tax increment financing
districts established by the HRA and designated by Hennepin
County as number 1201, 1203 and 1249, may not be sufficient
to pay the public redevelopment costs incurred and to be
incurred by the HRA and City in connection with the Southeast
Edina Redevelopment Plan. The inclusion of the Additional
Property in the area subject to the Plan will aid in the
redevelopment of the Additional Property in accordance with
the Southeast Edina Redevelopment Plan and in a manner beneficial
to the residents of the City and consistent with-the objectives
of the HRA as stated in the Southeast Edina Redevelopment
Plan all of which will meet the needs specified in the Southeast
Edina Redevelopment Plan. The Southeast Edina Redevelopment
Plan and the tax increment financing plan for the tax increment
financing districts designated by Hennepin County as number
1203 and 1249 are incorporated herein. by reference.
V. USE OF TAX INCREMENT FOR PAYMENT OF PUBLIC REDEVELOPMENT
COSTS OF SOUTHEAST EDINA REDEVELOPMENT PLAN
The use of Tax Increment to pay for public
redevelopment costs incurred and to be incurred by the HRA
and City in connection with the Southeast Edina Redevelopment.
Plan and redevelopment projects undertaken pursuant thereto
is hereby authorized. The City has issued and there is presently
outstanding the following bonds to finance such public
redevelopment costs:
a.
b.
c.
d.
Title
G.O. Tax Increment.
Bonds, Series 1981
G.O. Tax'Increment
Bonds, Series 1986A
G.O. Tax Increment.
Bonds, Series 1988
G.O. Taxable Tax
Increment Bonds,
Series 1988
Dated
October 1, 1981
August 1, 1986
October 1, 1988
October 1, 1988
-3-
Original
Principal
Amount.
$ 4,500,000
$ 4,000,000
$10,175,000
$ 5,100,000
e. G.O. Taxable April 1, 1989 $ 51300,000
Tax Increment. Bonds,
Series 1989
G.O. Tax Increment
Bonds, Series 1989
g. G.O. Tax Increment.
Refunding Bonds,
Series 1989
April 1, 1989
November 1, 1989
$ 8,425,000
$12,970,000
In addition, the City may issue additional tax
increment bonds to finance public redevelopment costs to
be incurred by the HRA and City in connection with the Southeast
Edina Redevelopment Plan as described in the Southeast Edina
Redevelopment Plan and the tax increment financing plan for
the tax increment financing districts designated by Hennepin
County as numbers 1203 and 1249.
The HRA and City will pledge Tax Increment to the
payment of the outstanding bonds issued above and may pledge
such Tax Increment to the payment of the additional tax increment
bonds.
VI. ESTIMATE OF FISCAL AND ECONOMIC IMPACT OF 1990 AMENDMENT
The estimate of the HRA of the fiscal and economic
impact of the 1990 Amendment is as follows:,
A. Present. Status of District. The adjusted original
net tax capacity of the District. is $318,546. The current
net tax capacity of the District for taxes payable in 1990
is $1,290,610. This results in a captured tax capacity of
the District for taxes payable in 1990 of $972,064. Property
within the District has a total tax capacity rate c�f
approximately .94 for taxes payable in 1990. This tax capacity
rate will produce Tax Increment in the amount of approximately
$913,740 from taxes payable in 1990.
B. •If Costs of Improvements and Public Redevelopment.
Costs of the Southeast Edina Redevelopment. Plan Not Paid
For With Tax Increment. If no cost of the Improvements or
public redevelopment costs of the Southeast Edina Redevelopment.
Plan (or bonds issued with respect thereto) is paid for with
Tax Increment and no other additional expenditures of Tax
Increment. are hereafter approved by the HRA, it. is estimated
that using a 2% inflation rate, all presently outstanding
bonds and loans payable from the Tax Increment. to be derived
from the District will be paid in full (or funds will be
on hand sufficient to pay such bonds or loans in full) by
1994. At such time the District will be terminated by the
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f
HRA and the captured tax capacity of the District will be
available for taxation by the various taxing jurisdictions.
C. If Costs of Improvements and Public Redevelopment
of the Southeast Edina Redevelopment Plan Paid With Tax
Increment. If all of the costs of the Improvements are paid
from Tax Increment. and any excess Tax Increment not needed
to pay the costs of the Improvements or the outstanding bonds
and loans presently payable from the Tax Increment, is used
to pay public redevelopment costs of the Southeast Edina
- Redevelopment Plan (or bonds heretofore or hereafter issued
with respect thereto) the District may stay in existence
until August 1, 2009. Which results in the captured tax
capacity of the District not being available for taxation
by.t.he various taxing jurisdictions during the additional
period the District stays in existence.
VII. DURATION OF DISTRICT; CAPTURED TAX CAPACITY AT COMPLETION
It is estimated that the-District will remain in
existence until August 1, 2009 as permitted by Minnesota
Statutes, Section 469.176, subdivision 1. The property in
the District is fully developed, and it is not expected that
significant additional private improvements will be constructed
in the District during its remaining duration. Therefore,
the present captured tax capacity represents the captured
tax capacity at completion.
VIII. ADDITIONAL AMENDMENTS TO PLAN
The City and the HRA reserve the right to further
amend or modify the Plan by their joint action, subject to
the provisions of state law regulating such action.
IX•. ORIGINAL PLAN
The Original Plan except to the extent and provisions
thereof are explicitly amended or supplemented by this 1990
Amendment shall remain in and be in full force and effect.
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