050911 EDACITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
May 9, 2011
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Daniel Stauner
1. Call to order
2. Roll call.
3. Approval of regular meeting minutes of June 28, 2010
4. A resolution modifying the restated redevelopment plan and tax increment
financing plans for redevelopment project no. 1 and tax increment financing
districts nos. 85 -1, 85 -2, 86 -1, 02 -1, 03- 1(special law), 04-1 (special law), 04 -2, 08 -1
and 08 -1a (hazardous substance subdistrict); creating tax increment financing
district no. 11 -1 (special law), and adopting a tax increment financing plan relating
thereto.
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes June 28, 2010
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 9:16 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Daniel Stauner, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Jason Quisberg, City Engineer
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Stauner, seconded by Commissioner
Elder, to approve the Regular Meeting Minutes of March 28, 2010. All
present voted in favor. Motion carried
BUSINESS SUBSIDY President Hemken introduced for discussion Item 4, Resolution adopting an
POLICY updated business subsidy policy for the Economic Development Authority in
Item 4 and for the city of New Hope.
EDA RESOLUTION Commissioner Stauner introduced the following resolution and moved its
2010 -03 adoption: "RESOLUTION ADOPTING AN UPDATED BUSINESS
Item 4 SUBSIDY POLICY FOR THE ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE." The motion for the adoption of
the foregoing resolution was seconded by Commissioner Elder, and upon
vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Hoffe, Lammle, Stauner; and the following voted against the same:
None; Abstained: None; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the president which was
attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Lammle, seconded by Commissioner
Stauner, to adjourn the meeting. All present voted in favor. Motion carried
The New Hope EDA adjourned at 9:17 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 1 June 28, 2010
11
Request for Action
Originating Department
Approved for Agenda
Agenda Section
Community Development
May 9, 2011
EDA
Item No.
By: Curtis Jacobsen, Director of CD
By: Kirk McDonald, City Ma nager
4
Resolution modifying the restated redevelopment plan and tax increment financing plans for redevelopment
project no. 1 and tax increment financing districts nos. 85 -1, 85 -2, 86 -1, 02 -1, 03- 1(special law), 04- 1(special
law), 04 -2, 08 -1 and 08 -1a (hazardous substance subdistrict); creating tax increment financing district no. 11 -1
and adopting a tax increment financing plan relating thereto.
Requested Action
The EDA is requested to approve the resolution creating tax increment financing district no. 11 -1 and
adopting a tax increment financing plan relating thereto.
Policy /Past Practice
It is a past practice of the EDA to consider /approve providing financial assistance such as TIF Districts for
redevelopment projects in the city.
Background
At the March 21, Council work session, staff and TIF financial consultants updated the Council on the city's current and
proposed TIF districts. At that time, the Council was agreeable to the creation of TIF District 11 -1 for the Bass Lake Road
Apartments site. The city's TIF consultants advised that this TIF District must be created by June of this year if the city
is to recover its acquisition and demolition costs for the Bass Lake Road apartments. This process was initiated
in late March. As discussed at the March work session, any proposed development or density identified in the
plan is flexible and can be altered in the future.
In 2003, the state legislature approved special legislation in TIF law due to the difficulty in accomplishing
redevelopment in the Bass Lake Road/Winnetka Avenue area. The special law provides the city with greater
flexibility with TIF. This s ecial legislation expires after December 31, 2013.
Motion by 4 Second by
To: h A J l l-- ( i
I: \ RFA \ COMM DEV \ Public Hearin s \ Q & R -EDA TIF District Eublic hearin 5- 9- 2011.doc
Request for Action
May 9, 2011
Page 2
When the city acquired the five parcels that housed the former Bass Lake Road Apartments and demolished
the buildings in June of that year, that started the clock ticking toward the statutory timeline that is being met
bu the Council's actions tonight. Legislation allows the city three years after demolition to create and
implement a TIF District in order to recover costs. That deadline will come due in June of 2011, hence
requiring action by the Council. The city has outlined the need for tax increment to help finance this project in
the attached "but for" analysis.
As required, a TIF plan has been created to identify the parcels' potential for redevelopment. This is used as a
standard from which to begin analysis and is in no way considered a commitment to the development
proposal as stated in the plan. The state recognizes that redevelopment is difficult and plans will change over
time.
An outline of the next steps is attached. Notice has been sent to Hennepin County of the city's intent to create
the district.
Anytime a modification is made to the city's TIF plan, including the creation of a new district, the entire
Redevelopment Plan and Tax Increment Financing Plan for the city must be modified, hence the long title of
the resolution.
Attachment(s)
0 Resolution
NEW HOPE ECONOMIC DEVELOPMENT AUTH•
COUNTY OF
STATE OF •
V4 * [* d1 9
A RESOLUTION MODIFYING THE RESTATED REDEVELOPMENT PLAN AND
TAX INCREMENT FINANCING PLANS FOR REDEVELOPMENT PROJECT NO. 1
AND TAX INCREMENT FINANCING DISTRICTS NOS. 85 -1, 85 -2, 86 -1, 02 -1, 03-
1(SPECIAL LAW), 04- 1(SPECIAL LAW), 04 -2, 08 -1 AND 08 -1A (HAZARDOUS
SUBSTANCE SUBDISTRICT); CREATING TAX INCREMENT FINANCING
DISTRICT NO. 11 -1 (SPECIAL LAW), AND ADOPTING A TAX INCREMENT
FINANCING PLAN RELATING THERETO.
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
modifications to the Restated Redevelopment Plan (the "Plan ") for Redevelopment
Project No. 1 (the "Project Area ") reflecting increased project costs and increased
bonding authority 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 "Existing TIF
Plans ") for Tax Increment Financing Districts Nos. 85 -1, 85 -2, 86 -1, 02 -1, 03-
1(Special Law), 04- 1(Special Law), 04 -2, 08 -1 and 08 -1A (Hazardous Substance
Subdistrict) (the "Existing TIF Districts ") reflecting increased project costs and
increased bonding authority within 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. It has been further proposed that the EDA approve the creation of
proposed Tax Increment Financing District No. 11 -1 (Special Law) (the "Proposed
TIF District ") within the Project Area and approve and adopt the proposed Tax
Increment Financing Plan (the "Proposed TIF Plan ") relating thereto, 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.
1.04. The EDA has caused to be prepared and has investigated the facts
with respect thereto a modified Plan for the Project Area and modified Existing TIF
Plans for the Existing TIF Districts reflecting increased project costs and increased
bonding authority within the Project Area, and Proposed TIF Plan for the Proposed
TIF District defining more precisely the property to be included, the public costs to
be incurred and other matters relating thereto.
1.05. The EDA has performed all actions required by law to be performed
prior to the approval and adoption of the modifications to the Plan and Existing TIF
Plans and the approval and adoption of the Proposed TIF Plan.
1.06. 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 Plan and Existing TIF Plans, to create the Proposed TIF District and to
approve and adopt the Proposed TIF Plan relating thereto.
Section 2. Findings
2.01. The EDA hereby finds that the assistance to be provided through the
adoption and implementation of the modified Plans, modified Existing TIF Plans and
Proposed TIF Plan (collectively 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.
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.
Section 3. Approvals and Adoptions.
3.01. The modifications to the Plan reflecting increased project costs and
increased bonding authority within 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.
3.02. The modifications to the Existing TIF Plans reflecting increased project
costs and increased bonding authority within 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.
E
3.03. The creation of the Proposed TIF District within the Project Area and
the adoption of the Proposed TIF Plan relating thereto 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 State
Auditor and Hennepin County.
Adopted by the Commissioners of the EDA this day of , 2011.
YES:
NO:
ABSENT:
President
ATTEST:
Executive Director
CERTIFICATION
1, , 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 ,
2011.
Executive Director
MMB: 4833 - 0579 -5337, v. 1