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2017 06-14 Planning Commission Packet (2)
CITY OF EDINA MEMO Economic Development/ HRA k tPhone 952-826-0407 • Fax 952-826-0390 • www.EdinaMN.gov p © ® 4111 E c) Housing and Redevelopment Authority Established 1974 Date: June 14, 2017 To: Chair and Members of the Edina Planning Commission From: Bill Neuendorf, Economic Development Manager Re: Transfer of Property— 4416 Valley View Road and 5146 Eden Avenue The City of Edina owns two properties that are currently vacant and tax-exempt. In the future, it is desirable that these properties be redeveloped and re-used in a manner that makes a positive contribution to their neighborhoods and the city. The Edina Housing and Redevelopment Authority (HRA) was established in 1974 with the intention of actively guiding redevelopment in the city. Minnesota Statutes provide HRA's with broader abilities regarding redevelopment of properties than is generally available for cities. It is advantageous for the ownership of these properties to be transferred from the City to the HRA. The first step in the transfer process is review by the Planning Commission. Minnesota Statute 462.356 requires that the Planning Commission render an opinion regarding the compliance with the Comprehensive Plan if the ownership of the properties is transferred from the City to the HRA. It is the opinion of staff, that the mere transfer of ownership does not conflict with any of the provisions of Edina's Comprehensive Plan. Information about each property is summarized below to support this conclusion. 4416 Valley View Road BACKGROUND • 0.25 acres • Purchased in 2002 for redevelopment purposes • Formerly a gas station/service station/rental facility • Vacant since the original building was demolished in 2004 • Designated as "neighborhood commercial" in Comprehensive Plan City of Edina• 4801 W. 50th St. • Edina, MN 55424 PC Resolution 2017-02 Transfer of Properties—Staff memo June 14,2017 Page 2 • Guided for small-scale (2-3 story) mixed use, commercial or multi-family residential in 2015 Small Area Plan ANTICIPATED REDEVELOPMENT • Request for Proposal issued summer 2016 identified two interested parties, but no action taken • Two interested developers expressed willingness to work together to proposed redevelopment that is compatible with Small Area Plan • No formal proposal submitted, but developers suggest small-scale (2-3 story) multi-family residential in keeping with Small Area Plan • On June 6, 2017 Edina HRA (acting on the real estate interests of the City) authorized staff to negotiate a real estate transaction for future consideration • If real estate terms are reached, the developer will be required to go through the City's standard development review process, including review by the Planning Commission • Land ownership by the Edina HRA will facilitate negotiations to better achieve redevelopment goals 5146 Eden Avenue BACKGROUND • 3.3 acres • Purchased in 1962 as the location of the City's second Public Works facility • Vacant since 2013 when a larger facility was constructed and the old building demolished • Designated as "mixed use center" usage in the Comprehensive Plan • Suggested use public/residential/transit in 2012 Grandview Framework Plan ANTICIPATED REDEVELOPMENT • Preliminary studies (2014/2015) indicated that mixed-use is possible at this site— although a new public facility is expensive; no action was taken on these preliminary studies • No specific proposal in mind at this time, although private developers continue to express interest in the site • Staff intends to renew the land use conversation in late 2017 or 2018 • Community input regarding the preferred uses on the site will be reviewed and updated to inform and guide specific land uses proposed for the site • Issuance of a Request for Proposal or negotiated sale and redevelopment is anticipated • Land ownership by the Edina HRA will facilitate negotiations to better achieve redevelopment goals In conclusion, staff finds no conflict with the transfer of ownership and recommends that the Planning Commission approve Resolution 2017-02. PC Resolution 2017-02 Transfer of Properties—Staff memo June 14,2017 Page 3 5146 Eden Avenue 3.3 acres with 3 parcels "—we" Hennepin County Property Map Date:618!2017 % 4 . ti„:„. - ."t \ i rt _ 0„dilmil = f � i4 4" I Saoa — 11.10. Nil myr �,'� ltieilhittiksh, ----. ,... ; . t, 7 0 . :i 1 r, �r rf ,jt a A a r � r .;y. #' , fl 1 it f 4� .w ' ii Ni • 1 a [t t+ 4:14*,..k 1 '�id;" , F' ! s rT if r i, f, s 1 inch=200 feet PARCEL ID:2811721310016 Comments: OWNER NAME:Vil Of Edina Proposed ownership transfer from City to HRA PARC EL ADDRESS:5146 Eden Ave,Edina MN 55436 PARCEL AREA:2.92 acres, 126,996 sq ft AT-B:Torrens SALE PRICE: SALE DATA: SALE CODE: This data(i)is furnished'AS IS'with no representation as to completeness or ASSESSED 2016,PAYABLE 2017 accuracy;(ii)is furnished w ith no warranty of an y kind;and(iii)is notsuitab le PROPERTY TYPE:Residential for legal.engineering or surveying purposes. HOMESTEAD Non-Homestead Hennepin County shall not be liable fo r any MARKET VALUE: $0 damage,injury or loss resulting from this data. TAX TOTAL: $0.00 COPYRIGHT @HENNEPIN COUNTY 2017 ASSESSED 2017,PAYABLE 2018 PROPERTY TYPE:Vacant Land-industrial HOMESTEAD: Non-homestead MARKET VALUE $0 PC Resolution 2017-02 Transfer of Properties—Staff memo June 14,2017 Page 4 4416 Valley View Road 0.25 acres with 2 parcels "t '"'° Hennepin County Property Map Date:6/8/2017 __ r, _ , rt.. . ..440/1 ro.p,,,,,,,:, ., ... ... .TN. --$.4 tkv- r,Alorf .A•rz, . .11;7' Wl".7.'71. ,t.. rill, 11 ,... ... r: remilir-- , '1 la iliti .::,,' , i ,..e-- If A .4* y ..r 'y n A rx 4 ". -iori:: 14,' ,, , ir _ ., , .. , ,. _., .,_ . r -4 , • 7'' At yrs ' - M1 r 16 111. t • _ rill , ,tr r l ' * 1 inch=1D0teet PARCEL ID: 1902824430061 Comments: OWNER NAME City Of Edina Proposed ownership transfer from City to HRA PARCELADDRESS:4416 Valley View Rd,Edina MN 55424 PARC EL AR EA:0.1 acres,4,147 sq ft A-T-B:Torrens SALE PRICE: SALE DATA: SALE CODE: This data(1)is furnished'AS IS'with no representation as to completeness or ASSESSED 2016,PAYABLE 2017 accuracy.(i)is furnished with no warranty of an y kind;and(i i)is notsuitab le PROPERTY TYPE:Vacant Land-Commercial br legal,engineering or surveying purposes. HOMESTEAD:Non-Homestead Hennepin County shall not be liable b r any MAP KET VALUE $0 damage,injury or loss resulting from this data. TAX TOTAL: $0.00 COPYRIGHT 6/HENNEPIN COUNTY 2017 ASSESSED 2017,PAYABLE 2018 PROPERTY TYPE:Vacant Land-commercial HOMESTEAD: Non-homestead MARKET VALUE: $0 CITY OF EDINA HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2017-02 RESOLUTION APPROVING TRANSFER OF PROPERTY WHEREAS, the City of Edina is the owner of vacant property located at 5146 Eden Avenue and 4416 Valley View Road as legally described in the attached Exhibit "A" (the "Subject Property"); and WHEREAS, the 5146 Eden Avenue property is designated as Mixed Use Center usage in the City's Comprehensive Plan; and WHEREAS, the 4416 Valley View Road property is designated as Neighborhood Commercial usage in the City's Comprehensive Plan; and WHEREAS, the City adopted the Grandview Framework Plan on April 17, 2012 to provide direction and guidance for future redevelopment in the immediate area, including the 5146 Eden Avenue property; and WHEREAS, the City updated the Comprehensive Plan on April 7, 2015 to include the Wooddale/Valleyview Small Area Plan to guide future redevelopment in the immediate area, including the 4416 Valley View Road property; and WHEREAS, the City of Edina established the Edina Housing and Redevelopment Authority ("HRA") in 1974 in order to facilitate the redevelopment and re-use of properties located in the Southeast Edina Redevelopment Project Area; and WHEREAS, the City of Edina has proposed to transfer ownership of the Subject Property to the Edina HRA in order to facilitate the redevelopment and re-use of these vacant properties; and 1 192674v1 —.eh, WHEREAS, Minnesota Statute 462.356 requires the Planning Commission to render an opinion before ownership of property is transferred from a municipality to a housing and redevelopment authority. NOW THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Edina: 1. The Planning Commission finds that the transfer of the Subject Property to the Edina HRA is in compliance with the Comprehensive Plan. PASSED AND ADOPTED this 14th day of June, 2017 by the Planning Commission of the City of Edina, Minnesota. CITY OF EDINA PLANNING COMMISSION BY: JoAnn Olsen, Chair Todd Thorsen, Secretary 2 I92674v1 EXHIBIT "A" LEGAL DESCRIPTIONS OF SUBJECT PROPERTY 5146 Eden Avenue Lots 2, 3, 4, 5, 6, 7, 8, 9, and 10; the East 90 feet of Lots I I to 19 inclusive; all in Block 2, "Grand View Heights". That part of Government Lot 8, Section 28, Township I I7, Range 21, lying North of the center line of Eden Avenue and East of a line drawn parallel to the main track of the Minneapolis, Northfield and Southern Railway from a point on the North line of said Government Lot 8 distant 582 feet East from the Northwest corner of said Government Lot 8. AND 4416 Valley View Road Lots 8 and 9, Block 21, "Fairfax, Hennepin County, Minnesota." 3 192674v1 U. k •u ' CITY' OFAtPtt MEMO Economic Development/ HRA la� � Phone 952-826-0407• Fax 952-826-0390• www.EdinaMN.gov I;}' • o Housing and Redevelopment Authority Established 1974 Date: June 14, 2017 To: Chair and Members of the Edina Planning Commission From: Bill Neuendorf, Economic Development Manager Re: Proposed 50th & France 2 Tax Increment Financing District The Edina Housing and Redevelopment Authority (HRA) has recommended that the City of Edina consider a new Tax Increment Financing (TIF) District to advance community goals in a portion of the 18.3 acre 50th and France commercial area. The City Council has scheduled a Public Hearing to consider this proposal on June 20, 2017. Input from the Planning Commission (regarding compatibility with the Comprehensive Plan) is being solicited in advance of the City Council's Public Hearing. Specifically, the Planning Commission is asked to confirm that the proposed project anticipated in the TIF Plan is generally in compliance with Edina's Comprehensive Plan. Note that this limited scope is established in the MN TIF Statutes 469. Specific details regarding the use of tax increment funds are evaluated by the Edina City Council and Edina Housing and Redevelopment Authority (not the Planning Commission). The proposed creation of a new Tax Increment Financing District is done in accordance with Section 469 of the Minnesota Statutes and is based on the following activities and findings: • Parcels are located within the boundaries of the Southeast Edina Redevelopment Project Area, • Future land use of the area is identified as "mixed use center" in 2008 Edina Comprehensive Plan (pages 4-25 to 4-29), • Guided development densities in the updated Comprehensive Plan are 75 units per acre and 1.5 floor-to-area ratio, • Identified as "potential area of change" in Comprehensive Plan (pages 4-30 to 4-33), and Tax Increment Financing was the public finance tool that was originally used in 1974 to fund redevelopment in the 50th and France commercial area. The proposed "50th and France 2" TIF District is a follow up to the original TIF District that was de-certified in 2009. While the original District successfully encouraged new private investment, creation of two public parking ramps and several street improvements, a new TIF District is necessary to support new investment that can deliver new residential and commercial uses, improved parking and new public realm elements. City of Edina • 4801 W. 50th St. • Edina, MN 55424 50th&France 2 TIF District—Staff memo June 14,2017 Page 2 ' The proposed TIF District includes 9 parcels on Market Street (formerly W. 49-1/2 Street) that are reasonably anticipated to be redeveloped in the near future. The remaining 134 parcels in the 50th and France commercial area are excluded from this new TIF District. Boundary maps are attached and included in Appendix B of the TIF Plan. All of the parcels proposed to be included in the TIF District are currently owned by the Edina HRA and are either tax-exempt or vacant. The projects identified in the TIF Plan (Appendix A) were reviewed and approved by the Planning Commission on April 5, 2017. They generally consist of: I) Expansion of existing North Parking Ramp to include new public parking stalls (increase from 262 to 573 total) and the addition of approximately 10,000 square feet of commercial space on the street level; and 2) Demolition of existing Center Ramp and construction of a mixed-use project that consists of 110 residential units and approximately 22,500 square feet of commercial space designed around a new public plaza and woonerf. Two levels of underground parking will be provided — one level for the exclusive use of apartment residents, the other level available for use by the general public. The street level outdoor spaces (sidewalks, woonerf and plaza) will be available to the general public. While the North Parking facility would continue to be tax-exempt, the new residential and new commercial elements would be added to the tax rolls. The land uses and density anticipated in the TIF Plan are consistent with the limits recommended by the Planning Commission on April 5, 2017 and approved by the City Council on April 18, 2017. Maximum Identified in Redevelopment Anticipated Updated Comprehensive Plan in TIF Plan Guided Land Use Mixed Use Center Mixed Uses (Residential, Commercial, Public) Residential Density 75 units per acre 72 units per acre (1 10 units/ 1.53 acres) Floor-to-Area 1.5 FAR 1.50 FAR Ratio* *As noted in the April 5, 2017 Staff Report (page I I), residential density is a more accurate measure of density for this type of mixed use project. On May 9, 2017, in accordance with Minnesota Statutes, other taxing agencies, such as Hennepin County and Edina School District#273, have been notified of the potential creation of this redevelopment district. To date, no comments have been received regarding this proposal. The Draft TIF Plan for the proposed 50th and France 2 TIF District is attached for your review and consideration. In accordance with Minnesota Statute governing the use of TIF, the Plan Commission is requested to confirm that the proposed TIF Plan is in compliance with Edina's Comprehensive Plan. The attached resolution expresses such confirmation in the format previously requested by the Planning Commission and is recommended to be approved. 50th&France 2 TIF District-Staff memo June 14,2017 Page 3 50th and France Commercial Area 18.3 acres with 143 parcels— established in 1974 r W. (�1!�--- ---J . \'Fy. 49 1 h _ i —lr 1 1 El C-1—P #\ 1 1 NIA_ NI ���Z N3 ,., si C3t9 �.lt' ._ r�_fS:�a s7_�L�J--}.S`' .,... � � td 5- 1I � I� f N1r 1101 N7 NS e N II N 101-1 11: IL _L -11 � . ! ` 1117 ; _ W. 43 1f�:. :4vr:6, �� Ed rt7:18 1 N 20112 2 11.23 N 1 S 11Z7 _ 5 r. 1 1126 111;71- S l3 ' [_ _ ,tt 15 — ,! it i ate.,. N25 'f, � i I t �..�. dam- 1a L t a tN 10 _ NV __-- —i;—_ LjrF:.3'�}'L':..,'-iF-^:O �V.�S Lf i� ��` g IA 1 ..,Lis, r,-11 $+� SICt SII E`� I — Lc } _-I S6� S 712AT1I 1� SZ 0 . u 5:5 c_i r .. S 15 512 4. _ : ""' :1314 .1'. t 51i1 '�-tarill - 5:1 :::---. .____ -------- 55 S i5A - --"NN . * i S !71 , ..t „-1-•--. \ '. S15 0 50 100 200ii. E. aTy„ti� - r- =.5,–:.."vr _ x t-1-----4----17----7--:=1 _-4 1B PROJECT BOUNDARY s:. ,... [M:.os,<, 1 _ 14— 5 �y ! S21 0 �1 a 50th&France 2 TIF District-Staff memo June 14,2017 Page 4 Proposed TIF District 2.9 acres with 9 parcels r ,�!>� J ',,Y‘,,, .�. 1 _d k I. S n r f,,401.... t F k gt : E ' .1802824140u34i �18028241400300. 2 ;. # 1802824140035 kwa 18028241400_b ,y • p Y^yr sir. • w ' �I rr * r f MARKET STMT 4 t' %%19 p vi1Al FT ', t,E t r • r� ti • 6 ti ? ''%111;,1802824140032, Laing' 1s.f �_iliPW180282414003F. 180282414003_ to180224140120�g02824140123 1802824�40023-i' P 1 Q� a .v LI sA- P.' r t Z r- _ j r P - lilia r� `, 1 -7-417'-r! -� I-. 2ilI r i r t'M r . _ • I� I . r • rY .141 •rr r ' , r 1„t:.' e, C• ('.. '�.t : r •9y ► �r P r iiimiii r d i"- '' ! . i r" r i1 li ..,. ,. .w --- pp j 'r • .1 r -X `t _` '619 Wit' 1-: '--i---,:r77,,,,,,,71; `-.�� ►_..rte 1' . ' .. ., usg, t. nips .. ^ 7 ' sir w ` /" rs.., r,, '-‘,„,,t,- - ---. J r �'t ft-4 �CC� 1 rte tra " �r,� r. r • ' �" r • City of Edina 50th and France 2 Tax Increment Financing Redevelopment District OtrA'>>i N ®�,Y 50th and France 2 TIF District s "kms Engineering Dept. May,2017 X W 0I CO a o n Jn N N ;11Q. ISg `�� ti▪l E ii I 1,�I 1 la m \ Z 0. I1 bd I13 //y \ eY Z p CUu L . a LL 06 p m Y d N ill—d2-11 CU \\\\\\\\\\\\\\\\NN,\\\\\\\\\ \in s_ '� I I/� EEE •J i-1 \ I \ W g 72.5• 1 C Iif ¢ = o - $ / N • • _ i r4 s 1 I e.e�," 1 e 1 0 9_ _ " CCI _ a I UI I_p I In \• ai I I bOZ , 4�I I 7SII D 0 4 f• 1-- I r \� �\ Ia iL + en .i — 1 . �' '1 1 } .Vi i.aV ri C .I 1 I I O _ R i YF o .� - .335 i o. ft W. I -- -- 1 0 III Cd I, N I 1 If 1 ll p ' r I s _. 4.-+ \\ . [ 1 : 1 , , z 1'01, .z, '9 • -I''.99 J ' c \4 ; 1 ' N C9f (^I ll II o ,__o.. ..„ ' t. W P .3 I p " IL•`, lb O▪CU \ l 5 o I — w1- I Ik0- o I 8 _ ;I 5 \ 1 `'-1 ae/ 1 zoi.zc 'ze'— 1 t 6 \N I ,, 1 CC CU . g lit I v— I td 0I°- \\\\\\\\\\ \\\\\1\\\'s L 1 1.---' Ern CI. ; � g .0 6 3 4-+ €s = C # Q PLANNING COMMISSION CITY OF EDINA, MINNESOTA RESOLUTION NO. 2017-01 RESOLUTION OF THE CITY OF EDINA PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA AND A TAX INCREMENT FINANCING PLAN FOR THE 50th AND FRANCE 2 REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City Council will be considering the establishment of a new Tax Increment Financing District to enable redevelopment of properties at 3925, 3930, 3936, 3940, and 3944 Market Street (formerly W. 49-1/2 Street) with a new mixed-use project; and WHEREAS, Minnesota Statutes require notification of and input from several entities, including the Planning Commission as part of the process of establishing a new Tax Increment Financing District; and WHEREAS, the proposed redevelopment of the properties consists of 110-unit apartment building and approximately 32,500 square feet of mixed commercial elements centered around a public plaza with both public and private underground parking and additional above-ground public parking; and WHEREAS, the City Council approved the preliminary rezoning of the properties and modification of the Comprehensive Plan to allow these uses on April 18, 2017; and WHEREAS, the Edina Housing and Redevelopment Authority and the City of Edina (the "City") have proposed to adopt a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area (the "Redevelopment Plan Modification") and a Tax Increment Financing Plan for the 50th and France 2 Redevelopment Tax Increment Financing District (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans") and have submitted the Plans to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans, guided land use, floor to area ratio, and density as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plans conform to the general plans for the development and redevelopment of the City as a whole. Dated:June 7, 2017 Chair ATTEST: Secretary ■ M ■ ■ As of May 31, 2017 Draft for Planning Commission Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area and the 4e } Tax Increment Financing Plan for the establishment of the 50th and France 2 Tax Increment Financing District (a redevelopment district) within the Southeast Edina Redevelopment Project Area Edina Housing and Redevelopment Authority City of Edina Hennepin County State of Minnesota Public Hearing: June 20,2017 Adopted: Preteparievd by: oEsHLEeRS&ASStOaCIATES3, INC. n EHIERs 306 651-697-8500 ffax:e651-697 -8555inwww.ehlers Ino cam Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-1 Foreword 1-1 Section 2 -Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-1 Subsection 2-1. Foreword 2-1 Subsection 2-2. Statutory Authority 2-1 Subsection 2-3. Statement of Objectives 2-1 Subsection 2-4. Redevelopment Plan Overview 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements 2-4 Subsection 2-9. Budgeted Sources of Revenue/Bonds to be Issued 2-6 Subsection 2-10. Uses of Funds 2-7 Subsection 2-11. Fiscal Disparities Election 2-7 Subsection 2-12. Business Subsidies 2-8 Subsection 2-13. County Road Costs 2-9 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions 2-10 Subsection 2-15. Supporting Documentation 2-12 Subsection 2-16. Definition of Tax Increment Revenues 2-12 Subsection 2-17. Modifications to the District 2-12 Subsection 2-18. Administrative Expenses 2-13 Subsection 2-19. Limitation of Increment 2-13 Subsection 2-20. Use of Tax Increment 2-14 Subsection 2-21. Excess Increments 2-15 Subsection 2-22. Requirements for Agreements with the Developer 2-15 Subsection 2-23. Assessment Agreements 2-15 Subsection 2-24. Administration of the District 2-16 Subsection 2-25. Annual Disclosure Requirements 2-16 Subsection 2-26. Reasonable Expectations 2-16 Subsection 2-27. Other Limitations on the Use of Tax Increment 2-16 Subsection 2-28. Summary 2-17 Appendix A Project Description A-1 Appendix B Map of the Southeast Edina Redevelopment Project Area and the 50`h and France 2 TIF District B-1 Appendix C Description of Property to be Included in the District C-1 Appendix D Estimated Cash Flow for the District D-1 Appendix E Minnesota Business Assistance Form E-1 Appendix F Redevelopment Qualifications for the District F-1 Appendix G Findings Including But/For Qualifications G-1 Section 1 -Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area Foreword The following text represents a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. This modification represents a continuation ofthe goals and objectives set forth in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. Generally,the substantive changes include the establishment of 50th and France 2 Tax Increment Financing District. Section 1 - Municipal Action Taken Based upon the statutory authority described in the Redevelopment Plan attached hereto,the public purpose findings by the City Council and for the purpose of fulfilling the City's development objects as set forth in the Redevelopment Plan, the City Council has created, established and designated the Southeast Edina Redevelopment Plan pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.001 to 469.047. The original and amended Southeast Edina Redevelopment Plan documents and amendments have designated the Southeast Edina Redevelopment Plan as a redevelopment project and also a tax increment financing plan for tax increment districts created prior to 1988.The Centennial Lakes Tax Increment Financing District was created in 1988 pursuant to Tax Increment Financing Plan 88-1, which was subsequently renamed the Centennial Lakes Tax Increment District and referred to by Hennepin County as District#1203 and#1249. For purposes of clarification,this modification will refer to the Southeast Edina Redevelopment Plan as the Southeast Edina Redevelopment Project Area Plan pursuant to Minnesota Statutes 469.002. The following municipal action has been taken with regard to the Southeast Edina Redevelopment Project Area Plan: September 29, 1977: The Housing and Redevelopment Authority of Edina (the "HRA") approved the Southeast Edina Redevelopment Plan. October 5, 1981:The Southeast Edina Redevelopment Plan was amended to identify project costs and bonded indebtedness incurred to finance those costs. May 6, 1985: The HRA and the City approved an amendment to the Southeast Edina Redevelopment Plan which includes the establishment of an interest reduction program and enlarges the project area to include the "1985 Project Area." August 19, 1985: The HRA and the City approve d the First Amendment to the 1985 Amendment to the Southeast Edina Redevelopment Plan to enlarge the 1985 Project Area and to authorize the issuance of additional bonds to acquire land within the enlarged 1985 Project Area. 1987: The HRA and City approved the 1987 Amendments to the Southeast Edina Redevelopment Plan to enlarge the project area to include the 1987 Project Area. 1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan provides and Interest Reduction Program in the amount of $2,500,000 to assist in the financing and construction of housing units, and authorizes the HRA and City to incur bonded indebtedness. February 21, 2012:The HRA and City expand the Southeast Edina Project Area as can be seen in Appendix A. Edina Housing and Redevelopment Authority Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-1 February 18, 2014: The HRA and City establish the Pentagon Park Tax Increment Financing District. March 2, 2016:The HRA and City establish the Grandview 2 Tax Increment Financing District. April 5, 2016: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District and establish the 66 West Tax Increment Financing District. (AS MODIFIED JUNE 20,2017) June 20, 2017: The HRA and City are establishing the 50th and France 2 Tax Increment Financing District. For further information,a review of the Redevelopment Plan for the Southeast Edina Redevelopment Project Area is recommended. It is available from the HRA Executive Director at the City of Edina. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Southeast Edina Redevelopment Project Area. Edina Housing and Redevelopment Authority Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-2 Section 2 - Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District Subsection 2-1. Foreword The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina(the "City"), staff and consultants have prepared the following information to establish the 50th and France 2 Tax Increment Financing District(the"District"),a redevelopment tax increment financing district,located in the Southeast Edina Redevelopment Project Area. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur or to promote a greater degree of development that allows City objectives to be fulfilled. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("MS.'), Sections 469.001 to 469.047, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive,as amended(the"Tax Increment Financing Act" or"TIF Act"),to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area,adopted September 29, 1977,and modified from time to time. Subsection 2-3. Statement of Objectives The District currently consists of nine parcels of land and adjacent and internal rights-of-way.As a part of the City's vision for the 50th and France Commercial Area, the District is being created to facilitate the redevelopment of existing HRA-owned property which is determined to be underutilized and consisting of obsolete structures, vacant areas, and outdated and inadequate public infrastructure. The proposed redevelopment contains new construction of approximately 110 unit apartment building and 32,500 square feet of commercial elements in the City. Please see Appendix A for further description of the anticipated project. The HRA is considering an agreement with Edina Market Street LLC as the developer at the time of preparation of this TIF Plan. Redevelopment activities are proposed to begin in 2017 with completion in 2019. This TIF Plan is expected to achieve many of the objectives outlined in Subsection 3-4 of the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Southeast Edina Redevelopment Project Area and the District. Subsection 2-4. Redevelopment Plan Overview Pursuant to the Redevelopment Plan and authorizing state statutes,the HRA or City is authorized to undertake the following activities within the District: 1. Property to be Acquired-The HRA or City currently owns nine parcels of property within the District and is further described in this TIF Plan. 2. Relocation- Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-1 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements,the HRA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The HRA or City may perform or provide for some or all necessary acquisition,construction, relocation, demolition,and required utilities and public street work within the District. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The HRA or City currently owns the property to be included in the District. Subsection 2-6. Classification of the District The HRA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district"means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings,streets, utilities,paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; (3) tank facilities,or property whose immediately previous use was for tank facilities,as defined in Section 115C, Subd. 15, if the tank facility: (i) have or had a capacity of more than one million gallons; (ii) are located adjacent to rail facilities;or (iii)have been removed, or are unused, underused, inappropriately used or infrequently used;or (4) a qual ming disaster area, as defined in Subd. 10b. M.S., Section 469.174, Subd. 10(a)(1) continued: (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation,fire protection including adequate egress, layout and condition of interior partitions,or Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-2 similar factors,which defects or deficiencies are of sufficient total significance to juste substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that(1)the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property;and(2)the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are met: (1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph(e)were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement ofparagraph(e)and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by§469.177, subdivision 1,paragraph (f). (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities,paved or gravel parking lots or other similar structures unless 15 percent of the area of M.S., Section 469.174, Subd. 10(a)(1) continued: the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph(a)to be included in the district, and the entire area of the district must satisfy paragraph (a). Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-3 In meeting the statutory criteria the HRA and City rely on the following facts and findings: • The District is a redevelopment district consisting of nine parcels. • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets,utilities,paved or gravel parking lots or other similar structures. • An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act.(See Appendix F). Pursuant to M.S., Section 469.176, Subd. 7,the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 2 73.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S.,Section 469.1 76,Subd. lb., the duration of the District will be 25 years after receipt of the first increment by the HRA or City(a total of 26 years of tax increment collection). The HRA or City elects to receive the first tax increment in 2021, which is no later than four years following the year of approval of the District. Thus,it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2046,or when the TIF Plan is satisfied.The HRA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S.,Section 469.174,Subd. 7 and M.S.,Section 469.177,Subd. 1,the Original Net Tax Capacity (ONTC)as certified for the District will be based on the market values placed on the property by the assessor in 2016 for taxes payable 2017. Pursuant to M.S., Section 469.177, Subds. 1 and 2,the County Auditor shall certify in each year(beginning in the payment year 2021)the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments,negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity(NTC)value of the District declines below the ONTC,no value will be captured and no tax increment will be payable to the HRA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2017, assuming the request for certification is made before June 30,2017. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity(CTC)of the District,within the Southeast Edina Redevelopment Project Area, Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-4 upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The HRA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures,beginning in the tax year payable 2021.The Project Tax Capacity(PTC)listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion(PTC) $1,558,128 Original Estimated Net Tax Capacity(ONTC) $72,509 Fiscal Disparities Contribution $147,572 Estimated Captured Tax Capacity(CTC) $1,338,047 Original Local Tax Rate 1.18213 Pay 2017 Estimated Annual Tax Increment(CTC x Local Tax Rate) $1,581,746 Percent Retained by the HRA 100% Tax capacity includes a 3%inflation factor for the duration of the District.The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be$744,171. Pursuant to M.S., Section 469.1 77, Subd. 4,the HRA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4,with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen(18)months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S.,Section 469.175,Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Budgeted Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are calculated in Appendix D and are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $28,519,768 Interest $2,851,977 TOTAL $31,371,745 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or City reserves the right to incur bonds or other indebtedness to help achieve the objectives of the TIF Plan. As currently proposed,the projects within the District will be financed by a pay- as-you-go note issued to reimburse the Developer for the funding of qualified redevelopment costs. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-5 does not obligate the HRA or City to incur debt. The HRA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The HRA or City may issue bonds(as defined in the TIF Act)secured in whole or in part with tax increments from the District in a maximum principal amount of$16,372,045. Such bonds may be in the form of pay-as- you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Further information can be found in Appendix D. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the redevelopment and construction of approximately 110 housing units and 32,500 square feet of retail space. The HRA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The HRA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table below. These estimates establish the maximum amount permitted to be expended,but the City/HRA is not obligated to expend this full amount. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $6,100,000 Site Improvements/Preparation $1,600,000 Utilities $1,900,000 Other Qualifying Improvements $3,920,068 Administrative Costs(up to 10%) $2,851,977 PROJECT COST TOTAL $16,372,045 Interest $14,999,700 PROJECT AND INTEREST COSTS TOTAL $31,371,745 The project cost utilizing tax increment,including financing costs(interest)listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan as permitted by M.S.Section 469.175,Subd. 4.The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2,no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of the Southeast Edina Redevelopment Project Area,(including administrative costs,which are considered to be spent outside of the District)subject to the limitations as described in this TIF Plan. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2.6 Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b,(within the District)are followed,the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity,there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of(A)the local taxing district tax rates or(B)the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City chooses to calculate fiscal disparities by clause b. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies M.S.Section 1161993 to 116J.995 defines a business subsidy as a "grant,contribution ofpersonal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease or other obligation,or any preferential use ofgovernmentfacilities given to a business." Also included in the definition are many forms of economic assistance. Some forms of assistance, such as tax increment, are specifically excluded from business subsidy requirements.Pursuant to M.S., Section 1161993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than$150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-7 (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 1161552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts,provided that the assistance is equal to or less than 50%of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers'compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes ofa principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of$150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration;and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The HRA will comply with M.S., Sections 1161.993 to 1161995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. la,the county board may require the HRA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will,in the judgment of the county,substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. The county roads in the vicinity of the District include France Avenue (County Road 17) and 50th St. W (County Road 21). The HRA and the City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. If the county elects to use increments to improve Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-8 county roads,it must notify the HRA or City within forty-five days of receipt of this TIF Plan. In the opinion of the HRA and City and consultants,the proposed development outlined in this TIF Plan will have little or no impact upon county roads,therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However,the HRA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that,therefore,the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for"test was not met: IMPACT ON TAX BASE IF"BUT FOR"NOT MET 2016/Pay 2017 Estimated Captured Total Net Tax Capacity(CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Hennepin County 1,573,060,731 1,338,047 0.0851% City of Edina 116,854,423 1,338,047 1.1451% Edina ISD No. 273 97,015,332 1,338,047 1.3792% IMPACT ON TAX RATES IF"BUT FOR"NOT MET Pay 2017 Percent Potential Extension Rates of Total CTC Annual Rate Taxes Hennepin County 0.440870 37.29% 1,338,047 589,905 City of Edina 0.282710 23.92% 1,338,047 378,279 Edina ISD No. 273 0.347980 29.44% 1,338,047 465,614 Other 0.110570 9.35% 1,338,047 147,948 Total 1.182130 100.00% 1,581,746 The estimates listed above display the captured tax capacity (CTC) when all construction anticipated in Appendix A is completed. The tax rate used for calculations is the actual Pay 2017 rate as obtained from Hennepin County. The total net capacity for the entities listed above are based on actual Pay 2017 figures. The District will be certified under the actual Pay 2017 rates,assuming the request for certification is made prior to June 30,2017. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is$28,519,768; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-9 (2) Probable impact of the District on City-provided services and ability to issue debt. Based upon input from the Edina Police Department,an impact of the District on police protection is not expected.The City Police Department does track all calls for service including property-type calls and crimes. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic and additional overall demands to the call load.The City does not expect that the proposed development,in and of itself,will necessitate new capital investment. Based upon input from the Edina Fire Department, the probable impact of the District on fire protection is not expected to be significant. The City expects costs of inspection and that the development to generate a minor increase in EMS calls, depending on the occupancy mix of the residential units. Typically new buildings compliant with building and fire codes generate few fire calls, if any,and are of superior construction beneficial to the mission of the Fire Department. Based upon input from the Edina Engineering Department, the impact of the District on public infrastructure is expected to be moderate. The redevelopment is not expected to require additional infrastructure to address its impact to traffic movement in the area. Aging parking infrastructure will be replaced with a pedestrian plaza and pedestrian-oriented woonerf,offset by public investment of $11 million in parking infrastructure expansion to the District's North Ramp. The operating costs from changes in configuration of the publicly maintained spaces resulting from the redevelopment are anticipated to remain neutral or slightly reduced. Based on the approved development plans, costs associated with street maintenance, sweeping, plowing, lighting and sidewalks are also expected to be neutral. The current infrastructure for sanitary sewer,storm sewer and water will be able to handle additional volume generated from the proposed development. The development in the District is expected to contribute an estimated$740,350 in combined City and Metropolitan Council sanitary sewer(SAC)and water(WAC)connection fees. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies.M.S. Section 469.175 Subd. 2(b)requires the TIF Plan to calculate "the estimated amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for a taxing jurisdictions remained the same."The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same,is$8,396,220. The amount is calculated by multiplying the total estimated increment of$28,519,768 by the percent of the total tax rate attributable to the school district(based on the Pay 2017 tax rate)of 29.44%. (4) Estimated amount of tax increment attributable to county levies.M.S., Section 469.175 Subd. 2(b) requires the TIF Plan to calculate "the estimated amount of tax increments over the life of the District that would be attributable to county levies,assuming the county's share of the total local tax rate for all taxingjurisdictions remained the same."The amount of tax increments over the life of the District that would be attributable to county levies,assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same,is$10,635,021.The amount is calculated by multiplying the total estimated increment of$28,519,768 by the percent of the total tax rate attributable to the county(based on the Pay 2017 tax rate)of 37.29%; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-10 information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. At this time,no requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause(b)(2)and the findings that are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the HRA and City's findings: • Redevelopment Qualifications Report: Stantec Consulting,April 2017. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S.,Section 469.174,Subd. 25,tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes,as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease ofproperty,tangible or intangible,to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993. Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4,any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements ofM.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt ifthat determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the Authority; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the Authority, shall be approved upon the notice and after the discussion,public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S.Section 469.175 Subd.4(f),the geographic area of the District may be reduced,but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged,the reasons and supporting facts for the determination that Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-11 the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in writing and retained. The requirements of this paragraph do not apply if(1) the only modification is elimination of parcel(s)from the District and(2)(A)the current net tax capacity of the parcel(s)eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or(B)the HRA agrees that, notwithstanding M.S., Section 469.177, Subd. 1,the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s)eliminated from the District. The HRA or City must notify the County Auditor of any modification to the District.Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the HRA or City,other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4. Amounts used to pay principal or interest on,fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.1 78; or 5. Amounts used to pay otherf nancial obligations to the extent those obligations were used to finance costs described in clauses (1) to(3). Administrative expenses also include amounts paid for services provided by bond counsel,fiscal consultants, and planning or economic development consultants.For districts for which certification was requested after July 31,2001,pursuant to M.S.,Section 469.176,Subd. 3,tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments,as defined by M.S., Section 469.174, Subd. 25, clause(1), from the District,whichever is less. Pursuant to M.S., Section 469.1 76, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofMS.,Section 469.176,Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11,the County Treasurer shall deduct an amount(currently 0.36 percent) of any increment distributed to the HRA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-12 Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certO,to the county auditor that the activity has commenced and the county auditor shall cert the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district.For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and(3)substantial reconstruction or rebuilding of an existing street. The HRA or City or a property owner must improve parcels within the District by approximately June 2021 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance,or otherwise pay public redevelopment costs of the the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance,or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans,advances or other payments made to or on behalf of the HRA or City or for the benefit of the Southeast Edina Redevelopment Project Area by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165,and/or M.S., Sections 469.178. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-13 These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the HRA for the Tax Increment Fund of said District. The HRA or City will pay to the developer(s)annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, other qualifying improvements, and administration. Remaining increment funds will be used for HRA or City administration(up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21. Excess Increments Excess increments,as defined in M.S., Section 469.176, Subd. 2,shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. Pursuant to M.S., Section 469.176, Subd. 2, "The authority shall annually determine the amount of excess increments for a district, if any. This determination must be based on the tax increment financing plan in effect on December 31 of the year and the increment and other revenues received as of December 31 of the year. The authority must spend or return the excess increments under paragraph(c)within nine months after the end of the year." In addition,the HRA or City may,subject to the limitations set forth herein,choose to modify the TIF Plan in order to finance additional public costs in the Southeast Edina Redevelopment Project Area or the District. Subsection 2-22. Requirements for Agreements with the Developer The HRA or City will review any proposal for private development within the District to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan,and any other drawings or narrative deemed necessary by the HRA or City to demonstrate the conformance of the development with City plans and ordinances. The HRA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the HRA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged,unless prior to acquisition in excess of 25 percent of the acreage,the HRA or City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA or City should the development or redevelopment not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177,Subd. 8,the HRA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-14 value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed,review the market value previously assigned to the land upon which the improvements are to be constructed and,so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the HRA Executive Director. Subsection 2-25.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the HRA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor,County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act,in establishing the District,the determination has been made that the anticipated development would not reasonably be expected to 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 TIF Plan.In making said determination, reliance has been placed upon written representation made by the developer to such effects,and upon HRA and City staff's awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D,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 the District and the use of tax increments. Subsection 2-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition,construction,renovation,operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county,school district,or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-15 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds,to the extent that the proceeds of the bonds were used to finance activities within said district or to pay,or secure payment of,debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended,through a development fund or otherwise, on activities outside of the District except to pay,or secure payment of,debt service on credit enhanced bonds. For purposes of applying this restriction,all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph(2)above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under MS.,Section 469.176Subd.4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances,pollution,or contaminants,acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land,the removal of hazardous substances or remediation necessary for development of the land,and installation of utilities,roads,sidewalks,and parking facilities for the site. The allocated administrative expenses of the HRA or City,including the cost of preparation of the development action response plan,may be included in the qualifying costs. Subsection 2-28. Summary The Edina Housing and Redevelopment Authority is establishing the District to preserve and enhance the tax base,redevelop substandard areas,and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers&Associates,Inc.,3060 Centre Pointe Drive,Roseville,Minnesota 55113, telephone(651)697-8500. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-16 Appendix A Project Description In 2016, the HRA released a request for development proposals seeking to revitalize and redevelop an underutilized section of the 50th and France Commercial Area consisting of HRA-owned property and aging public infrastructure. As a result,the HRA accepted the proposal of Edina Market Street LLC to work toward a purchase agreement for a portion of the land in the District and redevelop the site to compliment the City's re-investment of an estimated$11 million expansion to the city-owned North Parking Ramp. The 50th and France 2 Tax Increment District is a significant redevelopment effort of the City of Edina. The redevelopment cost is estimated to be in excess of$74 million. The project focuses on revitalizing the site of the City's underutilized property consisting of substandard vacant commercial property and aging public parking structure. The redevelopment envisions new construction of 110 unit apartment building and 32,500 square feet of mixed commercial elements supplemented with a public plaza and public underground parking. The redevelopment is expected to start as early as the close of 2017 and occur over the next two years reaching initial occupancy in 2019. Tax Increment from the District will be utilized alongside potential funding from the Metropolitan Council and Hennepin County to provide financing for the estimated$74 million private redevelopment project. The HRA proposes to issue a pay-as-you-go TIF Note to the developer to reimburse qualifying costs necessary to facilitate the redevelopment. commission - the project Note to Planningdated to be consistent it by bydescription will be uP the final plans submitted for final considerate the Edina City Council. Appendix A-1 Appendix B Map of the Southeast Edina Redevelopment Project Area and the 50th and France 2 TIF District Appendix B_1 h; IJ..n . . . ,;_ i 1.1‘,.....,,,,c ..h ., : -. ' ---7' r-' ---------r- -- -- i , -, '. 1 t.f.' 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' , 4 1o 'i r.......""1":"'...} �. �!� • 4,Alic ■ Iii al A a ■ IC w' i5 1 6E -P Mb r 1� gs e t , . City of Edina 50th and France 2 Tax Increment Financing Redevelopment DWistrictE 1r1A. owr�� 1/� 50th and France 2 TIF District Engineering Dept. '"�w�;;�T'D' May,2017 ® /y Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Owner 18-028-24-14-0023 3925 49 '/2 St. W. Edina HRA 18-028-24-14-0026 3930 49 '/2 St. W Edina HRA 18-028-24-14-0030 3936 49 '/2 St. W. Edina HRA 18-028-24-14-0032 Unassigned Edina HRA 18-028-24-14-0034 3940 49 '/2 St. W. Edina HRA 18-028-24-14-0035 3944 49 'h St. W. Edina HRA 18-028-24-14-0036 Unassigned Edina HRA 18-028-24-14-0120 Unassigned City th Edina Edina HRA 18-028-24-14-0123 Unassigned Edina HRA Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 m d t0 N d d N N N N N .Zif d N .. 0.. m (0 . a ' ' , 0- c r E-O.-N - m` e2 x O Q 0 a E C, V O Q wi 000 0 0 e e 00 Dee m o 000th (N 0t° Ot00 c > O N O O N N-n N O N O N O O LL O O -NN,- 00 �� ,-.-,- N ``I to aaa aao d F- tVo o d a C N N N N N a a N [0 .c. . . > D 0 W W W UJWWLIJLLJQQ 0 m m g C d -LC, to t u E E a �_ 0U 0 O O x ffH N � r m y E N N ^ E o C-3 t to E E E E E E E E d a D a ax a 13 ° 9rc `FOd F 0 _ ¢ aWWWWWWWWQ E N v S ° m Ut- = '° ° 0 �° „,,r-r..1., n n n n n m m o me z 0000000000 _ W �2 oO a'_0000 N00 `ry�p�pN NNN N NNN N x200 U 00(000 00 . 0C> TT T TT c T ET66-0 ig tn"oot-0oom } .m mmmmmmmmm a xa� 0U�.3'-� mmvmm mg. aaaaaaaaa z w is 76 o 0;6. 20.,,6,E MI-0 ,‘5 o d ...“x N N EO m d W v z 162- ,_-65T3- ,_ « ._72- ,. 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Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix E-1 Appendix F Redevelopment Qualifications for the District To be added to prior to the public hearing Appendix F-1 Appendix G Findings Including But/For Qualifications To be added to prior to the public hearing But-For Analysis Current Market Value 12,760,300 New Market Value-Estimate 52,538,830 Difference 39,778,530 Present Value of Tax Increment 11,896,262 Difference 27,882,268 Value Likely to Occur Without TIF is Less Than: 27,882,268 Appendix G-1 PLANNING COMMISSION CITY OF EDINA, MINNESOTA RESOLUTION NO. 2017-01 RESOLUTION OF THE CITY OF EDINA PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA AND A TAX INCREMENT FINANCING PLAN FOR THE 50th AND FRANCE 2 REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City Council will be considering the establishment of a new Tax Increment Financing District to enable redevelopment of properties at 3925, 3930, 3936, 3940, and 3944 Market Street (formerly W. 49-1/2 Street) with a new mixed-use project; and WHEREAS, Minnesota Statutes require notification of and input from several entities, including the Planning Commission as part of the process of establishing a new Tax Increment Financing District; and WHEREAS, the proposed redevelopment of the properties consists of 110-unit apartment building and approximately 32,500 square feet of mixed commercial elements centered around a public plaza with both public and private underground parking and additional above-ground public parking; and WHEREAS, the City Council approved the preliminary rezoning of the properties and modification of the Comprehensive Plan to allow these uses on April 18, 2017; and WHEREAS, the Edina Housing and Redevelopment Authority and the City of Edina (the "City") have proposed to adopt a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area (the "Redevelopment Plan Modification") and a Tax Increment Financing Plan for the 50th and France 2 Redevelopment Tax Increment Financing District (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans") and have submitted the Plans to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans, guided land use, floor to area ratio, and density as described in the comprehensive plan for the City. 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