121007 EDA
~
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
December 10,2007
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Martin Opem Sr.
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
Commissioner Daniel Stauner
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of November 26,2007
4. Public Hearing! Resolution modifying the restated redevelopment plan for
redevelopment project no. 1 and the tax increment financing plans for tax increment
financing districts nos. 85-1, 85-2 and 86-1
:). Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 697
Item 4
MOTION
Item 4
EDA Meeting
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
November 26, 2007
City Hall
President Opem called the meeting of the Economic Development Authority
to order at 8:01 p.m.
Present:
Martin Opem Sr., President
Andy Hoffe; Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
Daniel Stauner, Commissioner
Staff Present:
Kirk McDonald, Director of Community Development
Curtis Jacobsen, Community Development Assistant
Valerie Leone, City Clerk
Steve Sondrall, City Attorney
Motion was made by ComJ;nissioner Nolte, seconded by Commissioner
Stauner, to approve the Regular Meeting Minutes of September 24, 2007. All
present voted in favor. Motion carried.
President Opem introduced for discussion Item 4, Motion authorizing
payment of $24;415.83 to Moss & Barnett for legal fees related to a cost
recovery claim against Unocal/Chevron (improvement project no. 697).
President Opem stated the payment of $24;415.83 will be the final payment to
Moss & Barnett. President Opem reported that the settlement from
Unocal/Chevron was $270,000 which was approximately 50% of the soil
contamination clean up costs. He noted the city paid approximately $70,000 in
legal fees related to the cost recovery claim, and the city was pleased with the
$270,000 settlement as the firm's original offer was only $3,000.
Mr. Steve Sondrall, city attorney, explained that Moss and Barnett wrote off
approximately $10,000 in prior legal fees and reduced their final bill by
$2,512.13.
Council Member Nolte asked that the city obtain any reports created by Mr.
Ken Olson, Liesch & Associates, or by Moss & Barnett as the material should
be considered city-owned documentation.
Mr. Sondrall stated he would contact Moss & Barnett and request any
documentation riot already on file with the city.
Motion was made by Commissioner Nolte, seconded by Commissioner
Stauner, authorizing payment of $24,415.83 to Moss & Barnett for legal fees
November 26,2007
ADJOURNMENT
EDA Meeting
Page 2
related to a cost recovery claim against Unocal/Chevron (improvement
project no. 697). All present voted in favor. Motion carried.
Motion was made by President Opem, seconded by Commissioner Nolte, to
adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:10 p.m.
Respectfully submitted,
~~
Valerie Leone, City Clerk
November 26, 2007
EDA
Request for Action
Originating Department
Approved for Agenda
Agenda Section
Community Development
By: Kirk Me Donald, City Manager
Curtis Jacobsen, CD Specialist By:
December 10, 2007
EDA
Item No.
4
Resolution modifying the restated redevelopment plan for redevelopment project no. 1 and the tax increment
financing lans for tax increment financinO' districts nos. 85-1, 85-2 and 86-1
Requested Action
Staff requests that the Authority approve a resolution on the modification of the restated redevelopment plan
to redevelopment project no. 1 and the tax increment financing (TIF) plans for tax increment financing
districts nos. 85-1, 85-2 and 86-1.
Policy/Past Practice
It is a past practice of the Authority to make occasional modifications to TIF plans as required by state la\v and
changing circumstances upon the advice of legal council.
Background
On October 22 the Council adopted a resolution calling for the public hearing that is scheduled for December
10, 2007. Upon advice from Krass Monroe it was determined that minor modifications were necessary to be
compliant with changes in state lavv and that these modifications have to be made following the same
procedure as was used when the dish-icts were originally set up. The purpose of these modifications are to get
the budgets for the TIF Districts into sync \.vith the actual operation of the TIF Districts.
Jim Casserly, Krass Monroe, will be in attendance to answer any questions you may have.
Attachment(s)
€I Resolution
€I Krass .Monroe memo
€I TIF plan and budget 85-1
e TIP plan and budget 85-2
€I TIF Ian and bud O'et 86-1
Motion by
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Second by
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To: Cui.J2!1JC /'~ O? -0 cf
I:\RFA \PLANNING\PLAl'JNING\Q & R. EDA modification ofTIF districts.doc
Commissioner introduced the following resolution, the reading of
which was dispensed with by unanimous consent, and moved its adoption:
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION MODIFYING THE RESTATED REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO.1 AND THE TAX INCREMENT FINANCING
PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 85-1, 85-2 AND 86-1
BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the
New Hope Economic Development Authority (the "EDA"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the EDA approve and adopt the proposed
modification to the Restated Redevelopment Plan (the "Restated Plan") for
Redevelopment Project No. 1 (the "Project Area") reflecting increased project costs
within the Project Area, pursuant to and in accordance with Minnesota Statutes,
Sections 469.001 to 469.047,469.124 to 469.134 and 469.090 to 469.108, inclusive, as
amended and supplemented from time to time.
1.02. It has been further proposed that the EDA approve and adopt the
proposed modifications to the Tax Increment Financing Plans (the "Plans") for Tax
Increment Financing Districts Nos. 85-1, 85-2 and 86-1 (the "Districts") reflecting
increased project costs within the Districts and the Project Area, pursuant to and in
accordance with Minnesota Statutes, Sections 469.174 to 469.1799 and 469.090 to
469.108, and Laws of Minnesota 2003, Chapter 21, Article 10, Section 10, inclusive, as
amended and supplemented from time to time.
1.03. The EDA has caused to be prepared and has investigated the facts with
respect thereto a modified Restated Plan for the Project Area and modified Plans for the
Districts reflecting increased project costs within the Districts and the Project Area.
1.04. The EDA has performed all actions required by law to be performed prior
to the approval and adoption of the modifications to the Restated Plan for the Project
Area and the Plans for the Districts (collectively the "Plans").
1.05. The EDA hereby determines that it is necessary and in the best interests
of the City and the EDA at this time to approve and adopt the modifications to the Plans.
Section 2. Findinqs.
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted, and was signed by
the President and attested to by Executive Director.
Adopted by the Commissioners of the EDA this
day
2007.
President
ATTEST:
Executive Director
CERTIFICATION
I, , Executive Director of the New Hope
Economic Development Authority, County of Hennepin, State of Minnesota, do hereby
certify that the foregoing is a true and correct copy of Resolution No. adopted
by the EDA on the day of , 2007.
Executive Director
G:\WPDATA'N\NEW HOPE30\TIP,EDiI RESOLUTION.DOC
3
2.01. The EDA hereby finds that the assistance to be provided through the
adoption and implementation of the Plans is necessary to assure the development and
redevelopment of the Project Area.
2.02. The EDA hereby finds that the Plans conform to the general plan for the
development and redevelopment of the City as a whole in that they are consistent with
the City's comprehensive plan.
2.03. The EDA hereby finds that the Plans afford maximum opportunity
consistent with the sound needs of the City as a whole for the development and
redevelopment of the Project Area by private enterprise and it is contemplated that the
development and redevelopment thereof will be carried out pursuant to redevelopment
contracts with private developers.
2.04. The EDA hereby finds, determines and declares that the modification,
approval and adoption of the Plans is intended and in its judgment the effect will be to
promote the purposes and objectives specified in this Section 2 and otherwise promote
certain public purposes and accomplish certain objectives as specified in the Plans.
2.05. The EDA hereby finds, determines and declares that the expenditure of
tax increment within the Project Area serves a primarily public purpose.
Section 3. Approvals and Adoptions.
3.01. The modification to the Restated Plan reflecting increased project costs
within the Project Area is hereby approved and adopted by the Commissioners of the
EDA and is forwarded to the New Hope City Council for public hearing, review and
approval.
3.02. The modifications to the Plans for the Districts reflecting increased project
costs within the Districts and the Project Area are hereby approved and adopted by the
Commissioners of the EDA and are forwarded to the New Hope City Council for public
hearing, review and approval.
Section 4. Filing of Plans.
4.01. Upon approval and adoption of the Plans, the EDA shall cause said Plans
to be filed with the Minnesota Department of Revenue, the Office of the State Auditor
and Hennepin County.
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner , and upon vote being taken thereon the following
voted in favor thereof:
2
KRASS
MONROE
James R. Casserly
j casserly@krassmonroe.com
Direct 952.885.1296
MEMORANDUM
To: City of New Hope
Attn: Kirk McDonald, City Manager
Attn: Curtis Jacobsen, Community Development Specialist
Attn: Julie Linnihan, Finance Manager
From: James R. Casserly, Esq.
Date: December 4, 2007
Re: Modification to Tax Increment Finance Districts 85-1, 85-2 and 86-1
Our File No.1 0048-30
In our review of New Hope's Tax Increment Financing Reports to the Office of State
Auditor, we noted that the budgets for these three districts should be modified to reflect
past and current expenses and potential future expenses.
These modifications are necessary to more easily track EDA revenues and expenses.
Because the City has an integrated program with a single project area, the expenses
are authorized. However, for reporting purposes, the OSA wants to track revenues and
expenses by each tax increment financing district. As a result, it is necessary to modify
the budgets of these three individual districts to more clearly match the actual and
projected revenues and expenses.
Please note that the adoption of these resolutions do not:
1. Authorize any specific expense;
2. Authorize the issuance of any debt; or
3. Extend the duration of any district.
Modifying a TIF district budget requires the same formality as adopting the original
budget. As a result, the City is holding a public hearing and both the EDA and the City
must adopt resolutions authorizing the changes.
8000 Norman Center Drive, Suite 1000
Minneapolis, Minnesota 55437-1178
TEL 952.885.5999 FAX 952.885.5969
www.krassmonroe.com
Again, these changes are required to maintain integrity in the accounting and reporting
systems. These modifications also continue the City's policy of treating its
redevelopment activities in an integrated and coordinated manner.
Let me know if you need any further information, and I plan on attending the public
hearing to answer any questions that may arise.
JRC/al
G:\WPDATA\N\NEW HOPE\30\COR\lv1CDONALD JACOBSEN L1NNIHAN JRC 1.DOC
DECEMBER 10, 2007
MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 85-1
I. INTRODUCTION
On November 12, 1985, the City of New Hope (the "City") and the Housing
and Redevelopment Authority in and for the City of New Hope (the "HRA") adopted a
Redevelopment Plan, created Redevelopment Project No. 85-1, adopted a Tax
Increment Financing Plan (the "TIF Plan") and created Tax Increment Financing
District No. 85-1 (the "TIF District"). The Redevelopment Plan, Redevelopment
Project No. 85-1, TIF Plan and TIF District were transferred on August 10, 1989, from
the HRA to the New Hope Economic Development Authority (the "EDA"). The
Redevelopment Plan and TIF Plan were subsequently modified on October 11, 1993
to reflect increased geographic area, increased project costs and increased bonding
authority.
On July 25, 1994 the Redevelopment Plan was included in an amendment
called the Master Modification to the Redevelopment Plans and the Tax Increment
Financing Plans (the "Master Modification"). This Master Modification combined the
area within Redevelopment Project No. 85-1 with the areas of the EDA's other
redevelopment projects. At this time the TIF Plan was also modified to reflect
increased geographic area, increased project costs and increased bonding authority.
The Master Modification and the TIF Plan were further modified on October 9, 1995,
February 24, 1997, April 28, 1997, July 27, 1998, June 28, 1999 and September 9,
2002 to reflect increased geographic area, increased project costs and increased
bonding authority.
On December 8, 2003 the Redevelopment Plan (as included in the Master
Modification) was restated, the Master Modification (including Redevelopment Project
No. 85-1) was redesignated as Redevelopment Project No.1 (the "Project Area") and
the TIF Plan was modified to reflect increased geographic area, increased project
costs and increased bonding authority. The Restated Redevelopment Plan and TIF
Plan were modified again to reflect increased geographic area, increased project
costs and increased bonding authority on April 26, 2004, May 10, 2004, June 14,
2004 and August 23, 2004.
The TIF District was originally created as a redevelopment district with a
termination date of December, 2012.
II. DESCRIPTION OF MODIFICATION
The City and EDA are proposing to modify Exhibit I-A of the Restated
Redevelopment Plan to reflect estimated revenues and costs of $3,700,000 for this
TIF District as shown on the attached Exhibit A.
III. STATEMENT OF NEED FOR MODIFICATION AND OBJECTIVES
The City and EDA have created an integrated tax increment financing program
whereby all tax increment financing districts (the "District" or "Districts") are located
within a single project area called Redevelopment Project No.1 (the "Project Area").
This Project Area is governed by a single Redevelopment Plan. When a new District
is created within the Project Area, the budgets of all existing Districts are modified to
include the expenses of the newly created District. In order to assist the City, EDA
and Office of the State Auditor identify the source of revenues for eligible
expenditures, the City and EDA are modifying this TIF Plan for this TIF District.
IV. ORIGINAL TIF PLAN DETERMINATION AND NO NEW IMPACT
The determinations made in the original TIF Plan, except as herein amended,
shall remain in full force and effect. In addition to the original determinations, the
EDA at this time (i) anticipates no impact on City services due to the modification of
the TIF District, (ii) has no plans to issue general obligation debt for project costs, and
(iii) anticipates there will be no impact on its borrowing costs due to the modification
of the TI F District.
G:\\VPDATA\N\NEW HOPE\30\TlF\85.J TIFPLAN MODIFICATION.DOC
Source of Funds
Tax Increment Revenue
Investment Earnings
Bond Proceeds
Loan Proceeds
Special Assessments
Sales/Lease Proceeds
Loan/Advance Repayments
Grants
Other
Transfers In
Total Source of Funds
Use of Funds
Land/building acquisition
Site Improvements/preparation costs
Installation of public utilities
Public Parking facilities
Streets and sidewalks
Public park facilities
Social, recreational or conference facilities
Interest reduction payments
Bond principal payments
Bond interest payments
Loan principal payments
Loan/note interest payments
Administrative costs
Other
Transfers out
Total Use of Funds
TIF budgets. New Hope - 12-10.07.xls
1- A - 8
TIF No. 85-1
Cumulative
Modified
Budget
12/10/2007
$ 3,000,000
150,000
400,000
50,000
100,000
------------------
$ 3,700,000
$ 800,000
900,000
200 J 000
633,104
400,000
400,000
300,000
66,896
------------------
$ 3,700,000
o
DECEMBER 10, 2007
MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 85-2
I. INTRODUCTION
On December 23, 1985, the City of New Hope (the "City") and the Housing
and Redevelopment Authority in and for the City of New Hope (the "HRA") adopted a
Redevelopment Plan, created Redevelopment Project No. 85-2, adopted a Tax
Increment Financing Plan (the "TIF Plan") and created Tax Increment Financing
District No. 85-2 (the "TIF District"). The Redevelopment Plan, Redevelopment
Project No. 85-2, TIF Plan and TIF District were modifjed on June 22, 1987 to reflect
increased geographic area, increased project costs and increased bonding authority
and were subsequently transferred from the HRA to the New Hope Economic
Development Authority (the "EDA") on August 1 0, 1989.
On July 25, 1994 the Redevelopment Plan was included in an amendment
called the Master Modification to the Redevelopment Plans and the Tax Increment
Financing Plans (the "Master Modification"). This Master Modification combined the
area within Redevelopment Project No. 85-2 with the areas of the EDA's other
redevelopment projects. At this time the TIF Plan was also modified to reflect
increased geographic area, increased project costs and increased bonding authority.
The Master Modification and the TIF Plan were further modified on October 9, 1995,
February 24, 1997, April 28, 1997, July 27, 1998, June 28, 1999 and September 9,
2002 to reflect increased geographic area, increased project costs and increased
bonding authority.
On December 8, 2003 the Redevelopment Plan (as included in the Master
Modification) was restated, the Master Modification (including Redevelopment Project
No. 85-2) was redesignated as Redevelopment Project No.1 (the "Project Area") and
the TIF Plan was modified to reflect increased geographic area, increased project
costs and increased bonding authority. The Restated Redevelopment Plan and TIF
Plan were modified again to reflect increased geographic area, increased project
costs and increased bonding authority on April 26, 2004, May 10, 2004, June 14,
2004 and August 23, 2004.
The TIF District was originally created as a redevelopment district with a
termination date of December, 2012.
II. DESCRIPTION OF MODIFICATION
The City and EDA are proposing to modify Exhibit I-A of the Restated
Redevelopment Plan to reflect estimated revenues and costs of $16,420,000 for this
TIF District as shown on the attached Exhibit A.
III. STATEMENT OF NEED FOR MODIFICATION AND OBJECTIVES
The City and EDA have created an integrated tax increment financing program
whereby all tax increment financing districts (the "District" or "Districts") are located
within a single project area called Redevelopment Project NO.1 (the "Project Area").
This Project Area is governed by a single Redevelopment Plan. When a new District
is created within the Project Area, the budgets of all existing Districts are modified to
include the expenses of the newly created District. In order to assist the City, EDA
and Office of the State Auditor identrfy the source of revenues for eligible
expenditures, the City and EDA are modifying this TIF Plan for this TIF District.
IV. ORIGINAL TIF PLAN DETERMINATION AND NO NEW IMPACT
The determinations made in the original TIF Plan, except as herein amended,
shall remain in full force and effect. In addition to the original determinations, the
EDA at this time (i) anticipates no impact on City services due to the modification of
the TIF District, (Ii) has no plans to issue general obligation debt for project costs, and
(iii) anticipates there will be no impact on its borrowing costs due to the modification
of the TIF District.
G:\WPDA T A\N\NEW HOPEI30\TIF\85.2 TlF PLAN MODIFICA TION.DOC
-i
Source of Funds
Tax Increment Revenue
Investment Earnings
Bond Proceeds
Loan Proceeds
Special Assessments
Sales/Lease Proceeds
Loan/Advance Repayments
Grants
Other
Transfers In
Total Source of Funds
Use of Funds
Land/building acquisition
Site Improvements/preparation costs
Installation of public utilities
Public Parking facilities
Streets and sidewalks
Public park facilities
Social, recreational or conference facilities
Interest reduction payments
Bond principal payments
Bond interest payments
Loan principal payments
Loan/note interest payments
Administrative costs
Other
Transfers out
Total Use of Funds
TIF budgets - New Hope - 12-10-07.xls
1- A - 9
TIF No. 85-2
Cumulative
Modified
Budget
12/10/2007
$ 10,500,000
1,050,000
3,000,000
600,000
250,000
420,000
600,000
--------------------
$ 16,420,000
$ 3,500,000
5,000,000
200,000
430,572
3,000,000
1,000,000
1,050,000
2,000,000
239,428
--------------------
$ 16,420,000
o
DECEMBER 10, 2007
MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 86-1
I. INTRODUCTION
On June 23, 1986, the City of New Hope (the "City") and the Housing and
Redevelopment Authority in and for the City of New Hope (the "HRA") adopted a
Redevelopment Plan, created Redevelopment Project No. 86-1, adopted a Tax
Increment Financing Plan (the ''TIF Plan") and created Tax Increment Financing
District No. 86-1 (the "TIF District"). The Redevelopment Plan, Redevelopment
Project No. 86-1, TIF Plan and TIF District were transferred on August 10, 1989, from
the HRA to the New Hope Economic Development Authority (the "EDA").
On July 25, 1994 the Redevelopment Plan was included in an amendment
called the Master Modification to the Redevelopment Plans and the Tax Increment
Financing Plans (the "Master Modification"). This Master Modification combined the
area within Redevelopment Project No. 86-1 with the areas of the EDA's other
redevelopment projects. At this time the TIF Plan was also modified to reflect
increased geographic area, increased project costs and increased bonding authority.
The Master Modification and the TIF Plan were further modified on October 9, 1995,
February 24, 1997, April 28, 1997, July 27, 1998, June 28, 1999 and September 9,
2002 to reflect increased geographic area, increased project costs and increased
bonding authority_
On December 8, 2003 the Redevelopment Plan (as included in the Master
Modification) was restated, the Master Modification (including Redevelopment Project
No. 86-1) was redesignated as Redevelopment Project NO.1 (the "Project Area") and
the TIF Plan was modified to reflect increased geographic area, increased project
costs and increased bonding authority. The Restated Redevelopment Plan and TIF
Plan were modified again to reflect increased geographic area, increased project
costs and increased bonding authority on April 26, 2004, May 10, 2004, June 14,
2004 and August 23, 2004.
The TIF District was originally created as a redevelopment district with a
termination date of December, 2012.
II. DESCRIPTION OF MODIFICATION
The City and EDA are proposing to modify Exhibit I-A of the Restated
Redevelopment Plan to reflect estimated revenues and costs of $8,545,000 for this
TIF District as shown on the attached Exhibit A.
Ill. STATEMENT OF NEED FOR MODIFICATION AND OBJECTIVES
The City and EDA have created an integrated tax increment financing program
whereby all tax increment financing districts (the "District" or "Districts") are located
within a single project area called Redevelopment Project NO.1 (the "Project Area").
This Project Area is governed by a single Redevelopment Plan. When a new District
is created within the Project Area, the budgets of all existing Districts are modified to
include the expenses of the newly created District. In order to assist the City, EDA
and Office of the State Auditor identify the source of revenues for eligible
expenditures, the City and EDA are modifying this TIF Plan for this TIF District.
IV. ORIGINAL TIF PLAN DETERMINATION AND NO NEW IMPACT
The determinations made in the original TIF Plan, except as herein amended,
shall remain in full force and effect. In addition to the original determinations, the
EDA at this time (i) anticipates no impact on City services due to the modification of
the TIF District, (ii) has no plans to issue general obligation debt for project costs, and
(iii) anticipates there will be no impact on its borrowing costs due to the modification
of the TIF District.
G:\WPDATA\.N\NEW HOPE\30\TIF\86.i TIF PL^.N MODIFICATION. DOC
Source of Funds
Tax Increment Revenue
Investment Earnings
Bond Proceeds
Loan Proceeds
Special Assessments
Sales/Lease Proceeds
Loan/Advance Repayments
Grants
Other
Transfers In
Total Source of Funds
Use of Funds
Land/building acquisition
Site Improvements/preparation costs
Installation of public utilities
Public Parking facilities
Streets and sidewalks
Public park facilities
Social, recreational or conference facilities
Interest reduction payments
Bond principal payments
Bond interest payments
Loan principal payments
Loan/note interest payments
Administrative costs
Other
Transfers out
Total Use of Funds
TIF budgeis - New Hope - 12-10-07.xls
I-A-10
TIF No. 86-1
Cumulative
Modified
Budget
12/10/2007
$ 5,200,000
780,000
1,765,000
800,000
$ 8,545,000
$ 500,000
1,900,000
500,000
671,905
1,765,000
1,323,750
520,000
1,341,912
22,433
------------------
$ 8,545,000
o