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HomeMy WebLinkAbout1991 03-18 CCP Regular Session CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER MARCH 18, 1991 7 p.m. 1. Call to Order 2. Roll Call 3. Opening Ceremonies 4. Open Forum 5. Council Reports 6. Resolutions: a. Expressing Recognition of and Appreciation for the Dedicated Public Service of Dean A. Nyquist and Declaring March 23, 1991, as Dean A. Nyquist . Day in Brooklyn Center b. Approving a Modified Tax Increment Financing Plan for Tax Increment Financing District No. 1, Known as the Brookwood Tax Increment Financing District 7. Adjournment w Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION EXPRESSING RECOGNITION OF AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF DEAN A. NYQUIST AND DECLARING MARCH 23, 1991, AS DEAN A. NYQUIST DAY IN BROOKLYN CENTER WHEREAS, Dean A. Nyquist served as Mayor of the City of Brooklyn Center from 1978 until 1990; and WHEREAS, during his tenure, Mayor Nyquist fostered the concept of public /private partnerships, a critical factor contributing to Brooklyn Center's designation as a 1986 All America City and a 1990 All America City finalist; and WHEREAS, Mayor Nyquist encouraged and practiced volunteerism by participating in a wide array of community organizations and activities, including the Rotary Club, Brooklyn Center Charitable Foundation, Chamber of Commerce, and Earle Brown Days; and WHEREAS, in the spirit of this volunteerism, Mayor Nyquist served the residents of Brooklyn Center during his tenure as Mayor by waiving his right to receive monetary compensation for his service; and WHEREAS, his public service and civic effort for the betterment of the community merit the gratitude of the citizens of Brooklyn Center; and WHEREAS, it is highly appropriate that his service to the community should be recognized and expressed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the dedicated public service of Dean A. Nyquist is hereby recognized and appreciated by the City of Brooklyn Center. BE IT FURTHER RESOLVED that the City Council of the City of Brooklyn Center hereby proclaims March 23, 1991, as Dean A. Nyquist Day in Brooklyn Center. RESOLUTION NO. Date Todd Paulson, Mayor ATTEST: Deputy Clerk The motion for the adoption of the foregoing resolution was duly p g g Y 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. Councilmember introduced the following resolution and o g moved its adoption: RESOLUTION NO. RESOLUTION APPROVING A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1, KNOWN AS THE BROOKWOOD TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the City Council for the City of Brooklyn Center, Minnesota (City) as follows: Section 2. Recitals 1.01. The Housing and Redevelopment Authority in and for the City of Brooklyn Center (HRA) previously adopted a project plan (Project Plan) for the Brookwood project (Project Area) in accordance with Minn Stat Sections 469.001 through 469.047 and a tax increment financing plan (TIF Plan) in accordance with Minn Stat Sections 469.174 through 469.179 (collectively, the Plans) for the Brookwood tax increment financing district (TIF District). 1.02. The City Council of the City of Brooklyn Center (City) held a public hearing on the Plans and approved the same in 1983. 1.03. Responsibility for the Project Area and TIF District was subsequently shifted from the HRA to the Economic Development Authority for Brooklyn Center (EDA). 1.04. The EDA and -the City have previously adopted a modified Project Plan for the Project Area. 1.05 Changes in the nature and extent of public activities to be undertaken in the Project Area have occurred since the time of the adoption of the Plans and have prompted the EDA to prepare a modified TIF Plan. 1.06. The modified TIF Plan is contained in a document entitled "Housing Development Project Plan and Modified Tax Increment Financing Plan (Brookwood)" dated March 18, 1991, now on file with the EDA. 1.07. A copy of the modified TIF Plan was forwarded to Independent School District No. 286 and Hennepin County along with a notice of the public hearing as required by Minn Stat Sections 469.174 through 469.179 (TIF Act). 1.08. The EDA has approved the modified TIF Plan and referred it to the City Council for consideration as provided by the TIF Act. Resolution No. 1.09. The City Council has fully reviewed the contents of the modified TIF Plan and on this date has held a public hearing and has considered the comments of all interested persons thereon. Section 2. Findings 2.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Project Area, the TIF District and the City as a whole, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the EDA and the City to provide public assistance within the Project Area and TIF District. 2.02. It is further found and determined, and it is the reasoned opinion of the EDA and the City, that the development of the Project Area and TIF District outlined in the Project Plan and TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing as provided in the TIF Plan is necessary. 2.03. The modified TIF Plan conforms to the general plan for development of the City as a whole as set forth in the comprehensive municipal plan. 2.04. The modified TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area and TIF District by private enterprise. 2.05. The City specifically finds that the public expenditures to be made within the Project Area relating to the Earle Brown Farm and which are authorized by this modification to the TIF Plan are consistent with and necessary for the accomplishment of the goals and objectives adopted by the City for the TIF District. Section 3. Modified TIF Plan Adopted 3.01. The modified TIF Plan is approved. 3.02. The City finds that there has been no change in the boundaries of the TIF District as a result of this modification. 3.03. The EDA is requested to file a copy of the modified TIF Plan with the Minnesota commissioner of revenue as required by the TIF Act. 3.04. The city clerk is authorized and directed to transmit a certified copy of the resolution to the EDA. Date Todd Paulson, Mayor ATTEST: Deputy Clerk 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. THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY HOUSING DEVELOPMENT PROJECT PLAN (MINNESOTA STATUTES, SECTION 469.001 et. sue.) AND MODIFIED TAX INCREMENT FINANCING PLAN (MINNESOTA STATUTES SECTION 469.174 to 469.176) (BROOKWOOD) Dated: March 18, 1991 Prepared by: Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (612) 337 -9300 TABLE OF CONTENTS HOUSING DEVELOPMENT PROJECT PLAN PAGE A. Statutory Authority 1 B. Purpose 1 C. Project Definition 2 D. Project Description 2 E. Public Actions Required to Carry Out the Project 3 F. Land Use 3 MODIFIED TAX INCREMENT FINANCING PLAN A. Statutory Authority 4 B. Statement of Objectives 4 C. Development Program 4 D. Classification of the Tax Increment Financing District 5 E. Legal Description of Property in the Tax Increment Financing Housing District 6 F. Description of Property to be Acquired 6 G. Estimate of Costs 6 H. Estimated Amount of Bonded Indebtedness 6 I. Sources of Revenue 7 J. Original Assessed Value 7 K. Estimated Captured Assessed Value 7 L. Limitation and Identification of the Use of Tax Increments 7 M. Duration of the Tax Increment Financing District 8 N. Excess Tax Increments 8 O. Impact of the Tax Increment Financing District Upon Other Taxing Jurisdictions 8 P. Annual Financial Report g Q. Geographic Modifications 10 R. Limitation on Duration of Tax Increment Financing Districts Not Subject to Activity 10 S. Limitation on Qualification of Property in Tax Increment Financing District Not Subject to Improvement 10 T. Notification of Prior Planned Improvements 10 U. Administrative Expenses 11 V. Requirement for Agreements with the Developer 11 W. Assessment Agreements 11 A. Administration of the Tax Increment Financing Housing District 12 Y. Tax Increment Financing Account for the Housing District 12 HOUSING DEVELOPMENT PROJECT PLAN A. STATUTORY AUTHORITY The Brooklyn Center Economic Development Authority (the "authority ") was authorized by the governing body of the City of Brooklyn Center and established in accordance with Minnesota Statutes Sections 469.090 to 469.108. The authority has been authorized by the City of Brooklyn Center to carryout all powers of and administer all project initiated by the Brooklyn Center HRA pursuant to Minnesota Statutes Sections 469.001 to 469.047. B. PURPOSE The authority has determined the need to establish a project in order to provide additional housing opportunities including housing opportunities for persons and families of low to moderate incomes as defined by the U.S. Department of Housing and Urban Development (HUD) and the State of Minnesota Housing Finance Agency (MHFA). The authority finds that property exists in the municipality that is vacant, open and undeveloped or contains vacant buildings or improvements which are substandard. It is further found that many of these real properties are either themselves or are located in areas which are blighted, unoccupied, dilapidated, and /or economically unproductive and this has resulted in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare. It is further found that private development of such real property is economically unfeasible and that much of this real property constitutes a high percentage of the total land area which cannot be readily used or sold by the municipality and other units of state and local government. It is further found that many of these real properties that are vacant, open and undeveloped land or lands containing vacant, substandard buildings or improvements are susceptible of construction upon, or conservation, rehabilitation, and improvement so as to provide decent, safe and sanitary housing for persons of low and moderate income thus alleviating the serious shortage of decent, safe and sanitary housing for persons or families of low and moderate income and further eliminating, remedying, or preventing conditions and evils enumerated in Minnesota Statutes Sections 469.001 et sec. It is further found and declared that many of these real properties are susceptible of providing persons and families of low and moderate income with homeownership opportunities, with appropriate governmental subsidies and assistance that such persons or families would otherwise be unable to afford. In order to alleviate this housing shortage; in order to foster development and use of said stagnant and unproductive real property; in order to bring substandard buildings and improvements into compliance with public standards for decent, safe, and sanitary housing; in order to alleviate the conditions and evils enumerated in Minnesota Statutes Sections 469.001 et se q., in order to provide � p low and moderate income families with homeownership opportunities; in order to dispose of excess land, for residential housing development purposes; and in order to insure the sound growth, development and financial stability of the community there is a need to grant the housing and redevelopment authority the powers granted in the statute and said powers are public uses and purposes for which private property may be acquired, public money spent, and other such p owers exercised. C. PROJECT DEFINITION The type of project to be undertaken by the authority is a housing development project as defined in Minnesota Statutes Section 469.002, subd. 15. The term project may also be applied to all real and personal property, assets, cash, or other funds, held or used in connection with the development or operation of the housing development project. D. PROJECT DESCRIPTION The project area includes the land previously identified and the following parcels: PID # 35- 119 -21 -44 -0002 02- 118 -21 -14 -0004 35- 119 -21 -44 -0003 02- 118 -21 -14 -0002 02- 118 -21 -11 -0002 02- 118 -21 -14 -0006 02- 118 -21 -11 -0010 02- 118 -21 -14 -0007 02- 118 -21 -11 -0011 02- 118 -21 -14 -0025 02- 118 -21 -11 -0005 02- 118 -21 -14 -0108 02- 118 -21 -12 -0009 02- 118 -21 -14 -0100 02- 118 -21 -12 -0010 02- 118 -21 -14 -0101 02- 118 -21 -21 -0002 02- 118 -21 -14 -0102 02- 118 -21 -21 -0014 02- 118 -21 -14 -0103 02- 118 -21 -21 -0015 02- 118 -21 -14 -0104 02- 118 -21 -21 -0005 02- 118 -21 -14 -0105 02- 118 -21 -12 -0011 02- 118 -21 -14 -0106 02- 118 -21 -13 -0008 02- 118 -21 -14 -0107 02- 118 -21 -21 -0001 02- 118 -21 -13 -0024 02- 118 -21 -24 -0018 02- 118 -21 -13 -0025 02- 118 -21 -24 -0019 02- 118 -21 -13 -0026 02- 118 -21 -21 -0016 02- 118 -21 -13 -0029 02- 118 -21 -14 -0019 02- 118 -21 -13 -0028 02- 118 -21 -14 -0024 02- 118 -21 -13 -0027 02- 118 -21 -14 -0023 02- 118 -21 -42 -0035 02- 118 -21 -14 -0022 02- 118 -21 -42 -0034 02- 118 -21 -14 -0021 02- 118 -21 -42 -0033 02- 118 -21 -14 -0020 02- 118 -21 -42 -0004 02- 118 -21 -14 -0011 02- 118 -21 -42 -0031 02- 118 -21 -14 -0012 02- 118 -21 -14 -0009 02- 118 -21 -14 -0008 02- 118 -21 -14 -0005 02- 118 -21 -14 -0001 02- 118 -21 -14 -0003 2 E. PUBLIC ACTIONS PROJECT REQUIRED TO CARRY OUT THE PR Q O The following public actions are to be undertaken by the local governing body and the authority in order to provide a site for the housing development. 1. Land acquisition and assemblage of small parcels in diverse ownerships using eminent domain powers when necessary. 2. Vacation of rights -of -way. 3. Dedication of new rights -of -way. 4. Installation and repair or replacement of existing streets. 5. Installation and repair or replacement of public and private utilities and facilities. F. LAND USE The land acquired by the authority is surplus highway right -of -way and was formerly a residential land use. The land will remain in residential land use with the only change being a rezoning of the land from single family residential to multi - family residential. The City Planning Commission will review all necessary rezoning, subdivision replattings and other aspects of the site and improvements. The City Planning g Commission will review the protect plan and tax increment financing plan and report in writing to the city council its findings as to the compliance of the housing development project and the tax increment financing district to the city comprehensive plan. 3 MODIFIED TAX INCREMENT FINANCING PLAN A. STATUTORY AUTHORITY The Brooklyn Center Economic Development Authority (the "Authority') is authorized to designate a tax increment financing district pursuant to Minnesota Statutes Sections 469.174 to 469.179. The City Council of the City of Brooklyn Center (the "City") is authorized to approve and create the tax increment financing district. B. STATEMENT OF OBJECTIVES 1. Provide decent, safe, and sanitary owner - occupied housing units, rental housing units and other dwelling units and living accommodations for persons and families of low to moderate income. 2. Provide decent, safe and sanitary owner occupied housing units, rental housing units and other dwelling units and living accommodations for elderly persons, regardless of income. 3. Provide the impetus for residential development consistent with the needs of the Authority and the City fore development by private enterprise. 4. Accomplish the housing goals of the City and the Authority including diversification of the housing stock and provision of a mix of housing for all levels of income. 5. Attempt to provide housing consistent with the policies, present and future housing needs and housing allocation plans and implementation programs of the Housing Element of the Metropolitan Development Guide of the Metropolitan Council of the Twin Cities Area. 6. Improve the financial base of the City. 7. Achieve a high level of design and landscaping quality to enhance the physical environment; and 8. Provide adequate streets, utilities, and other public improvements and facilities to enhance the area for new development. C. DEVELOPMENT PROGRAM 1. Description of the Redevelopment Proposal Brutger Companies Inc. plans to construct 170 units of housing. The housing to be constructed includes: a. a 65 unit rental apartment building, 4 b. 73 condominium units, and C. 32 townhouse units. The 65 rental units and the 73 unit condominium structure are for occupancy by elderly persons and households. The 32 townhouse units will be available for persons and households of any age and income. The estimated market rent for the 65b rental units is expected to be approximately $300 for one bedroom units and #360 for two bedroom units. The estimated sales price for the 73 condominium units is $50,000 for one bedroom units and $60,000 for two bedroom units. The townhouses will have an approximate sales price of $60,000 per unit. 2. Description of Actions by the Authority The Authority has acquired twelve (12) parcels of land in diverse ownerships with easements held on the parcels by the State of Minnesota Department of Transportation (MnDOT). 3. Contract Provisions A redevelopment agreement between the Authority and Brutger Companies Inc. exists. The Authority agrees to transfer title to the assembled site on or before March 15, 1983. The developer agrees to start construction of the first phase of development (the rental units) within 30 days of March 15, 1983 and will complete construction within eight months of March 15, 1983. Phase two construction (condos) will commence within 30 days of April 15, 1983 and be completed in 10 months. Phase three construction (townhouses) will commence within 30 days of April. 15, 1983 and be completed in eight months. The Authority also agrees to provide public improvements for the site including sewer, water, streets and curb and tter at a cost not of to exceed $440,000 prior to January, 1984. The acquisition price of $380,000 will be substantially "written down" or reduced by the Authority as a further development inducement to the developer. D. CLASSIFICATION OF THE TAX INCREMENT N FINANCING D C G ISTRICT The tax increment financing district to be established will facilitate the construction of 140 units of multi - family owner occupied and rental housing. A tax increment financing housing district is a project or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in Minnesota a Statu tes Chapter 462A p ,Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts. Of the 170 units of housing to be constructed within the project and the tax increment financing district, 65 will directly eceive local ocal financial assistance through a municipal housing program authorized in Minnesota Statutes Chapter 462C. The City will make a loan estimated to be $3,550,000 from the proceeds of the revenue bonds to finance the construction and the long term financing of the multi - family residential development in accordance with Section 462C.05. 5 The developer, the Brutger Companies, will also receive indirect housing financial assistance through the City single family mortgage revenue bond program. The City is authorized to issue $8,250,000 in single family mortgage revenue bonds in accordance with Minnesota Statutes Section 462C.01. A total of $2,500,000 in bond proceeds will be reserved for the purchasers of the existing single family housing units sold by elderly persons or households who purchase or rent housing constructed in the tax increment financing district. In addition, ten percent of the mortgage money derived from the bond issue proceeds will be made available to those who are not the first time purchasers of housing. Therefore some of the persons or households who purchase condominium units or townhouse units in the tax increment financing district may utilize below market interest mortgage loans from the mortgage revenue bond proceeds. Based on the direct and indirect use of state legislation on a municipal program incorporated in Minnesota Statutes, Chapter 462C and the intention to reserve part of the housing in the project for occupancy by persons or families of low and moderate income as defined in Minnesota Statutes Chapter 462A, the tax increment financing district to be designated and created by the authority and established by the City, is classified as a housing district and will be described henceforth as a tax increment financing housing district. E. LEGAL DESCRIPTION OF PROPERTY IN THE TAX INCREMENT FINANCING HOUSING DISTRICT. The legal description of the property within the tax increment financing district was included in the original plan. No additional property is being added as a result of this modification. F. DESCRIPTION OF PROPERTY TO BE ACQUIRED The property described in Section E of the original tax increment financing plan is the property which was acquired by the authority. G. ESTIMATE OF COSTS The original TIF Plan adopted in 1983 estimated expenditures of $1,032,477 in the district. In addition, the Authority now intends to utilize tax increment from the district to pay for certain Project costs which have been incurred in connection with the Earle Brown Farm TIF district. Increment captured in this district and utilized to pay for the additional Project costs will vary from an estimated $182,841 for taxes levied in 1990 to $231,887 for taxes levied in 2002. The total increment to be devoted to the new costs during this period is estimated to be $2,684,167. H. ESTIMATED AMOUNT OF BONDED INDEBTEDNESS The City intends to issue and sell its general obligation tax increment bonds in the amount of $6,050,000 to pay for the costs of this TIF district and of the Earle Brown Farm TIF district. The proceeds of the bonds will be used to 6 reimburse the City for funds previously expended. Increment will be pledged from this TIF district and the Earle Brown Farm TIF district to pay for the 1991 bonds. I. SOURCES OF REVENUE The original TIF Plan adopted in 1983 noted that two sources of income were expected to be used to finance public costs associated with the proposed housing development. The two revenue sources were land disposition proceeds and annual tax increments generated as a result of taxation of the land and new housing units. J. ORIGINAL ASSESSED VALUE Pursuant to Minnesota Statutes Section 469.175, Subd. 1 and Section 469.177, Subd. 1, the Original Assessed Value (OAV) for the tax increment financing housing district of the Authority was estimated in 1983 to be $93,140. The valuation was based on appraisals of the twelve parcels and the assessment of this property by the city assessor of the City of Brooklyn Center. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed valuation of property in the tax increment financing housing district. In any year in which the assessed valuation of the tax increment financing housing district increases above $93,140, the Office of the County Auditor will apply the mill rate to captured assessed valuation and a tax increment will be payable to the Authority. In any year in which the total assessed valuation declines below $93,140, no assessed value will be captured and no tax increment will be payable. The Office of the County Auditor shall certify in each year after the date the OAV was certified, the amount the OAV 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 stipulations, adjustments, negotiated or court - ordered abatements. K. ESTIMATED CAPTURED ASSESSED VALUE The estimated captured assessed value (now captured tax capacity) of the tax increment financing housing district was included in the original TIF Plan adopted in 1983. L. LIMITATION AND IDENTIFICATION OF THE USE OF TAX INCREMENTS In accordance with Minnesota Statutes Section 469.176, Subd. 4, all revenues derived from tax increment shall be used in accordance with the tax increment 7 financing plan. The revenues shall be used by the Housing and Redevelopment Authority to finance or otherwise pay public redevelopment costs pursuant to Minnesota Statutes Sections 469.001 462.411 et . seg. Public redevelopment costs are defined as the cost of a project including administrative expense of the authority allocable to the project and debt charges. M. DURATION OF THE TAX INCREMENT FINANCING DISTRICT The authority expects to terminate the tax increment financing housing district in 2001. N. EXCESS TAX INCREMENTS Pursuant to Minnesota Statutes Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes Section 475.61, Subd. 3, the City shall use the excess amount to: 1. prepay the outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; 4. repay any loans including interest on these loans; or 5. maintain the amount in the special redevelopment account described in Section Y for current and future expenditures as a result of amendments to the TIF plan. O. IMPACT OF THE TAX INCREMENT FINANCING DISTRICT UPON OTHER TAXING JURISDICTIONS In addition to the estimates contained in the original TIF Plan adopted in 1983, the Authority will dedicate tax increment to pay for the 1991 Bonds. The Authority estimates that the actual impact of this on other taxing jurisdictions is zero because without the establishment of the TIF district, no housing would have been constructed. However, assuming that the increment to be utilized to pay for the 1991 Bonds would have been available to other taxing jurisdictions, the following is the Authority's estimate of the impact of the additional expenditures authorized by this modified TIF Plan on all affected taxing jurisdictions: TAXING JURISDICTIONS T . C. RAT TAXES Hennepin County 27.916% $ 55,252 Brooklyn Center 17.479% 34,595 Independent School District #286 42.099% 83,323 Other 6.734% 13,328 TOTAL 94.228% $186,498 8 The following represents the additional tax capacity rates which would have to be levied by each taxing jurisdiction in order to compensate for the loss of the tax dollars shown in the previous table: TAXING JURISDICTION ADDITIONAL TAX CAPACITY RATE Hennepin County 0.0053% Brooklyn Center 0.1445% Independent School District #286 0.9510% P. ANNUAL FINANCIAL REPORT Pursuant to Section 469.175, Subd. 6 of the TIF Act, the City must file an annual financial report regarding the tax increment financing district. The report shall be filed by July 1 of each year with the school board, the county board and the state auditor. The report to be filed by the City shall include the following information: 1. the original tax capacity; 2. the captured tax capacity, including the amount of any captured tax capacity shared with other taxing districts; 3. the outstanding principal amount of bonds issued or other loans incurred to finance project costs; 4. for the reporting period and for the duration of the tax increment financing district, the amount budgeted under the TIF Plan and the actual amount expended for the following categories: (a) acquisition of land and buildings through condemnation or purchase; (b) site improvement or preparation costs; (c) installation of public utilities or other public improvements; (d) administrative costs, including the allocated cost of the City; 5. for properties sold to developers, the total cost of the property to the City and the price paid by the developer; and 6. the amount of tax exempt obligations, other than those reported under clause (3), which were issued on behalf of private entities for facilities located in the tax increment financing district. 9 Q. GEOGRAPHIC MODIFICATIONS In accordance with Minnesota Statutes Section 469.175, Subd. 4, the geographic area of a tax increment financing district "may be reduced but shall not be enlarged after five years following the date of designation of such district ". There is no enlargement of the TIF district as a result of this modification. R. LIMITATION ON DURATION OF TAX INCREMENT FINANCING DISTRICTS NOT SUBJECT TO ACTIVITY Pursuant to Minnesota Statutes Section 469.176 Subd. 1 "no tax increment shall be paid to an authority three years from the date of certification by the County Auditor unless within the three -year period (1) bonds have been issued pursuant to Section 7 or in aid of a project' pursuant to any other law, except revenue bonds issued pursuant to Chapter 474, prior to the effective date of the Act; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district..." The Authority must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1985 or the Office of the County Auditor may dissolve the tax increment housing district. S. LIMITATION ON QUALIFICATION OF PROPERTY IN TAX INCREMENT FINANCING DISTRICT NOT SUBJECT TO IMPROVEMENT Pursuant to Minnesota Statutes Section 469.176, Subd. 6, "if, after four years from the date of certification of the original assessed value of the modification of the tax increment financing district..., no demolition, rehabilitation or renovation of property or other site preparation including improvement of a street adjacent to a property but not installation of utility service, has been commenced on a property located within a tax increment financing district by the Authority or by the owner of the property in accordance with the tax increment financing plan, no additional tax increment may be taken from that property and the original assessed value of that property shall be excluded from the original assessed value of the tax increment financing district. If the Authority or the owner of the property subsequently commenced demolition, rehabilitation or renovation or other site re aration on that property including P P P P Y g improvement of a street adjacent to that property, in accordance with the tax increment financing plan, the Authority shall certify to the county auditor in the annual disclosure report that the activity has commenced and the property may be added into the tax increment financing district. The county auditor shall certify the most recently assessed value of that property and add it to the original assessed value of the tax increment financing district." T. NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS Pursuant to Minnesota Statutes Section 469.176, Subd. 4, the Authority has reviewed and searched the properties to be included in the tax increment housing district and found no properties for which building permits have been issued during the 18 months immediate) preceding . .y p eced ng approval of the tax increment financing plan Y count b the Y• If a building ng permit is issued within the 18 month period preceding 10 approval of the tax increment financing plan by the city, the county auditor is authorized and required to increase the original assessed value of the tax increment financing district by the assessed valuation of the improvements for which the building permit was issued, excluding the assessed valuation of improvements for which a building permit was issued during the three month period immediately preceding said approval of the tax increment financing plan as certified by the assessor. U. ADMINISTRATIVE EXPENSES Pursuant to Minnesota Statutes Section 273.75, Subd. 3, administrative expenses are limited to ten percent (10%) of the total tax increment expenditures. Each time the Authority increases the budget of the tax increment financing district, the amount of tax increment money allocated to administrative costs may be increased as long as the total administrative expenditures do not exceed ten percent (10%) of the total budget of tax increment expenditures. Administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. V. REQUIREMENT FOR AGREEMENTS WITH THE DEVELOPER Pursuant to Minnesota Statutes Section 469.177, Subd. 5, no more than ten percent (10%) by acreage of the property to be acquired by the Authority in the housing district shall be owned by the city as a result of acquisition with the proceeds of bonds issued pursuant to Section 469.178 without the Authority having prior to acquisition in excess of ten percent (10%) of the acreage, concluded an agreement for the development of the property acquired and which provides recourse for the city should the development not be completed. W. ASSESSMENT AGREEMENTS Pursuant to Minnesota Statutes Section 469.177, Subd. 8, the Authority may, upon entering into a development agreement pursuant to Minnesota Statutes Section 469.176, Subd. 5, enter into an agreement in recordable form with the developer of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements for the duration of the tax increment housing district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements 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 assessor may certify the minimum market value agreement. 11 i X. ADMINISTRATION OF THE TAX INCREMENT FINANCING HOUSING DISTRICT Administration of the tax increment financing housing district will be handled by the Executive Director of the Brooklyn Center Economic Development Authority. Y. TAX INCREMENT FINANCING ACCOUNT FOR THE HOUSING DISTRICT The tax increment received as a result of increases in the tax capacity value of the tax increment housing district will be maintained in a special account separate from all other Authority accounts and expended only upon sanctioned Authority activities identified in the TIF plan as amended. BR291 -019 12 CITY OF BROOKLYN CENTER council Meeting Date 3/18/91 Agenda hem Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION APPROVING VACATION LEAVE AND SICK LEAVE BENEFITS FOR THE APPRAISER 11 DEPT. APPROVAL: Personnel Coordinator Signature - title MANAGER'S REVIEW /RECOMMENDATION: ., No comments to supplement this report ✓ Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) Following a competitive recruiting, interviewing, and testing process, Joseph DaBruzzi will be hired as the new appraiser Il. As some of you may recall, Joe was previously employed for over ten years by the City as appraiser II in the assessing department before moving to Florida in 1988. In accruing vacation leave benefits, we wish to give Joe credit for the time he was previously employed by the City. As we have done with some other employees, we would like to give Joe a 96 hour block of sick leave which he can use in the first year of employment, but which he must earn before accumulating additional hours. RECOMMENDED CITY COUNCIL ACTION Pass a Resolution Approving Vacation Leave and Sick Leave Benefits for the Appraiser IL Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING VACATION LEAVE AND SICK LEAVE BENEFITS FOR THE APPRAISER II WHEREAS, the City Council wishes to authorize certain vacation leave and sick leave benefits for the new appraiser II. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Joseph DaBruzzi, as appraiser II, is authorized to receive credit towards vacation leave accrual for the time he was previously employed by the City from January 3, 1978, through July 21, 1988. BE IT FURTHER RESOLVED that Joseph DaBruzzi, as appraiser II, is granted a 96 hour block of sick leave which can be used in the first year of employment, but which must be earned before additional hours accumulate. Date Todd Paulson, Mayor ATTEST: Deputy Clerk 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.