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Home My WebLink About1995-03-23 NAC Memorandum to OPH Re Modification 1 to TIF 0u F N Northwest Associated Consultants, Inc -,:zt AC U R B A N P L A N N I N G - D E S I G N• M A R K E T R E S E A R C H MEMORANDUM TO: Oak Park Heights City Council FILE COPY FROM: Dan Wilson DATE: 23 March 1995 RE: Oak Park Heights - Modification No. 1 to St. Croix Mall TIF FILE NO: 798.02 - 95.01 Attached is a draft TIF Plan Modification that will permit the City to use tax increments generated by the St. Croix Mall to pay for storm sewer extension and utility system repairs. The December 22, 1994 Tautge, Redpath and Company report calculated these expenses at $736,200 that were not to be assessed. The original TIF Plan had already provided for $489,000 worth of street reconstruction costs. The original plan did not describe the project area to include the area south of 57th street North. Therefore, the modification will permit the use of TIF funds on 56th Street No., 55th Street N. Omar Avenue, Obren Avenue No. and Omaha Avenue No. The approval process is as follows: 1. City Council holds public hearing. 2. City Council adjourns. 3. HRA meeting called to order (your staff posted the required 3 day notice for an HRA meeting). 4. HRA considers resolution approving Modification No. 1. 5. HRA adjourns. 6. City Council reconvenes. 7. City Council considers resolution. We will prepare the final draft subject to any changes the Council would like to make. 5775 Wayzata Blvd. - Suite 555 • St. Louis Park, MN 55416 • (612) 595- 9636•Fax. 595 -9837 MODIFICATION NUMBER 1 TO TAX INCREMENT FINANCING PLAN FOR ST. CROIX MALL TIF PROJECT MARCH 27, 1995 CITY STREET RECONSTRUCTION PROGRAM • MODIFICATION NO. 1 TO ST. CROIX MALL TIF I. BACKGROUND - PRIOR ACTION The City of Oak Park Heights (City) and the Oak Park Heights Housing and Redevelopment Authority (HRA) adopted the Oak Park Heights Redevelopment Plan, pursuant to Minnesota Statutes 469.001 - 469.047 in October 1989. The City and HRA subsequently adopted the Tax Increment Financing Plan for the St. Croix Mall Project in September 1989 pursuant to Minnesota Statutes 469.174 to 469.179. The 1989 Tax Increment Financing Plan is incorporated in this TIF Plan Modification by reference. The original Tax Increment Financing Plan authorized and budgeted for the use of tax increment financing proceeds to be used to finance a street reconstruction program. The original plan included a description of the streets on which improvements would be made. H. MODIFICATION NO. 1 INTENT The City and HRA propose to modify the original TIF Plan to make the description of the streets on which improvements will be made to more accurately coincide with the Engineer's proposed reconstruction area. The modification expands the area by two blocks south of 57th Street No. See Exhibit A, Street Reconstruction Location Map. Budget authority will be increased from the currently obligated $489,000 to $750,000. Currently unobligated tax increment proceeds will pay for the budget increase as this modification does not provide for the collection of additional tax increment. The plan modification does not seek to modify the TIF District boundaries or the duration for which tax increments will be collected. III. PUBLIC PURPOSE The City and HRA have determined that the costs of the street reconstruction program would create a hardship on many home owners in the affected area or represent costs that cannot legally be assessed to benefitting property owners. Therefore, the City and HRA have found that it is necessary to use tax increment financing funds to pay for the proposed project. • 0 IV. PUBLIC ACTIVITIES - MODIFIED The City's consulting engineering firm, Bonestroo, Rosene, Anderlik & Associates have completed the "Report for 1994 Street Program ", dated January 1994. The proposed project area and project description is detailed in that report. The report identifies approximately $736,200 in storm sewer extension and utility system repairs that are recommended not to be assessed. V. FINANCING PLAN MODIFIED September 1989 Budget Private Assistance Pay As You Go Basis 960,000 Public Improvements 489,000 Capitalized Interest & Discount 110,500 Administration 50,500 March 1995 Budget Modification Public Improvements 247,200 Contingencies 13,800 TOTAL MODIFIED PUBLIC IMPROVEMENTS $ 750,000 The City's financial Consultant, Tautges, Redpath & Company's 12/22/94 report entitled City -wide Street Reconstruction Program identifies $302,100 as the unobligated TIF revenues through 1998. The unobligated TIF revenues is the source of funds committed to pay for the increased public improvement costs. 2 RESOLUTION NO. Council Member introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE 1995 MODIFICATION NO. 1 TO THE 1989 ST. CROIX MALL TAX INCREMENT FINANCING PLAN (STREET RECONSTRUCTION PROJECT) BE IT RESOLVED, by the City Council in and for the City of Oak Park Heights, Minnesota (the "City "), as follows: 1. The Board of Commissioners of the Housing and Redevelopment Authority (HRA) and City Council (the "City Council ") of the City of Oak Park Heights, Minnesota (the "City ") have previously approved a redevelopment plan as defined in Minnesota Statutes, Section 469.002, Subdivision 16, designated as the Oak Park Heights Redevelopment Plan (the "Redevelopment Plan"), and a redevelopment project to be undertaken pursuant thereto, as defined in Minnesota Statutes, Section 469.002, Subdivision 14 (the "Redevelopment Project "); and a Tax Increment Financing Plan, as defined in Minnesota Statutes 469.174 to 469.179, which established the Tax Increment Financing Plan for the St. Croix Mall project. It has been proposed that the HRA approve a modification of the Tax Increment Financing Plan, pursuant to Minnesota Statutes 469.174, in order to finance public improvement costs to be incurred by the HRA in connection with a street reconstruction program previously identified in the Redevelopment Plan. 2. The HRA has requested that this Council approve the 1995 Modification No. 1 Tax Increment Financing Plan following a public hearing thereon. The HRA has furnished to this Council a copy of the 1995 Modification No. 1 and this Council on March 27, 1995 held a public hearing on the same after notice of the public hearing was published in the official newspaper of the City, not less than ten days prior to the date of the hearing. At the public hearing, all persons desiring to be heard with respect to the 1995 Modification No. 1 Tax Increment Financing Plan were heard. 3. The 1995 Modification No. 1 to the Tax Increment Financing Plan for St. Croix Mall TIF Project is hereby approved. PASSED by the Council this 27th day of March 1995. Mayor ATTEST: City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, whose signature was attested by the City Administrator. RESOLUTION NO. Commissioner introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE 1995 MODIFICATION NO. 1 TO THE 1989 ST. CROIX MALL TAX INCREMENT FINANCING PLAN AND REQUESTING THE APPROVAL OF THE CITY COUNCIL (STREET RECONSTRUCTION PROJECT) BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Oak Park Heights, Minnesota (the "HRA "), as follows: 1. The HRA and City Council (the "City Council ") of the City of Oak Park Heights, Minnesota (the "City ") have previously approved a redevelopment plan as defined in Minnesota Statutes, Section 469.002, Subdivision 16, designated as the Oak Park Heights Redevelopment Plan (the "Redevelopment Plan"), and a redevelopment project to be undertaken pursuant thereto, as defined in Minnesota Statutes, Section 469.002, Subdivision 14 (the "Redevelopment Project "); and a Tax Increment Financing Plan, as defined in Minnesota Statutes 469.174 to 469.179, which established the Tax Increment Financing Plan for the St. Croix Mall project. It has been proposed that the HRA approve a modification of the Tax Increment Financing Plan, pursuant to Minnesota Statutes 469.174, in order to finance public improvement costs to be incurred by the HRA in connection with a street reconstruction program previously identified in the Redevelopment Plan. 2. The 1995 Modification is described in the attached document entitled Modification No. 1 to Tax Increment Financing Plan for St. Croix Mall TIF Project, dated March 27, 1995, and are hereby approved. 3. The 1995 Modification No. 1, together with the written opinion of the Commission, shall be presented to the City Council for a public hearing on the 1995 Modification No. 1 pursuant to Minnesota Statutes, Section 469.175, Subdivision 3. DATED the 27th day of March 1995 Chairman ATTEST: Executive Director • . • F N Northwest Associated Consultants, Inc. A C U R B A N P L A N N I N G - D E S I G N - M A R K E T R E S E A R C H TRANSMITTAL RECORD DATE: 24 March 1995 TO: Julie - Oak Park Heights FROM: Scott Richards /Dan Wilson VIA: () Mail () Pick Up () Delivery (x) Fax NUMBER OF PAGES INCLUDING COVER: 8 QTY OF DATED DESCRIPTION 1 Memorandum St. Croix Mall TTF 1 Modification No. 1 to TIF Plan 1 Council Resolution 1 HRA Resolution REMARKS: RE: Oak ParkHeights - St. Croix Mall TIF JOB NO: 798 - 95.01 5775 Wayzata Blvd. - Suite 555 • St. Louis Park, MN 55416 • (612) 595 - 9636 -Fax. 595 -9837