HomeMy WebLinkAbout20100517 - VIII-B-1Memo
To: Mayor Hicks and City Council
From: John Hinzman, Community Development Director
Date: May 17, 2010
Subject: Resolution: Order Public Hearing #2010 -20 - TIF District No. 5
(15 and Vermillion Streets).
REQUEST
The City Council is asked to adopt the attached resolution ordering a public
hearing to consider creation of Tax Increment Financing (TIF) District No. 5. The
district would consist of 0.69 acres owned by Linn Investment Properties, LLC,
located at the southeast corner of the 15 and Vermillion Streets. The site
formerly contained Jiffy Gas Station (1501 Vermillion) and a home (1511
Vermillion). Both structures have been demolished per the 2008 Demolition
Agreement between the HRA and Linn.
Upon approval by the City Council, the public hearing would be held at the July
19, 2010 City Council Meeting.
HEDRA REVIEW
The Hastings Economic Development and Redevelopment Authority (HEDRA)
reviewed the request at the May 13, 2010 meeting.
TIF - TAX INCREMENT FINANCING
Tax Increment Financing (TIF) allows for the use of increased tax revenue
achieved through improving a property to finance improvements. The increment
between the present value of the property and the value of the property with
improvements would be captured for use in project development.
PROPOSED PROJECT
Linn Investment Properties proposes to construct an 8,500 s.f. Napa auto parts
Store on the site. Linn has submitted preliminary plans and project cost
information showing a need for TIF in order to move forward with construction.
Ehlers and Associates has reviewed the preliminary cost information and concurs
that project could not occur, but for TIF. Linn plans to submit for Site Plan review
in near future.
ATTACHMENTS
• Resolution
• Location Map
• Concept Plans
• Schedule of Events
CITY OF HASTINGS
DAKOTA AND WASHINGTON COUNTIES
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL
ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR THE VERMILLION STREET
REDEVELOPMENT AREA, THE PROPOSED ESTABLISHMENT OF TAX
INCREMENT FINANCING DISTRICT NO. 5 THEREIN, AND THE ADOPTION
OF A TAX INCREMENT FINANCING PLAN THEREFOR.
BE IT RESOLVED by the City Council (the "Council ") for the City of Hastings, Minnesota (the "City "),
as follows:
Section 1. Public Hearing In an effort to encourage the development and redevelopment of
certain designated areas within the City, this Council shall meet on July 19, 2010, at approximately 7:00
P.M., to hold a public hearing on the proposed adoption of a Modification to the Redevelopment Plan for
the Vermillion Street Redevelopment Area (the "Redevelopment Plan Modification "), the proposed
establishment of Tax Increment Financing District No. 5 (a redevelopment district), and the proposed
adoption of a Tax Increment Financing Plan (the "TIF Plan ") therefor (the Redevelopment Plan
Modification, and TIF Plan are referred to collectively herein as the "Plans "), all pursuant to and in
accordance with Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1082, and
Sections 469.174 to 469.1799, inclusive, as amended; and
Section 2. Notice of Public Hearing. Filing of the Plans City staff is authorized and directed to
work with Ehlers & Associates, Inc., to prepare the Plans and to forward documents to the appropriate
taxing jurisdictions including Dakota County and Hastings School District No. 200. The City Clerk is
authorized and directed to cause notice of the hearing, together with an appropriate map as required by
law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30,
days prior to July 19, 2010, and to place a copy of the Plans on file in the City Clerk's office at City Hall
and to make such copy available for inspection by the public.
Dated: May 17, 2010
Adopted:
Paul J. Hicks, Mayor
ATTEST:
Melanie Mesko Lee, City Clerk
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SCHEDULE OF EVENTS
HASTINGS ECONOMIC DEVELOPMENT
AND REDEVELOPMENT AUTHORITY
AND THE CITY OF HASTINGS
DAKOTA AND WASHINGTON COUNTIES, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE VERMILLION STREET REDEVELOPMENT AREA
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 5
(a redevelopment district)
Draft as of May 5, 2010
August 14, 2008 HRA adopts resolution making certain findings with respect to parcels being
occupied by substandard buildings and other improvements.
August 21, 2008 HRA approves Demolition Agreement with Linn Investment Properties, LLC.
May 11, 2010 Project information (SEH report, detailed project description, maps, but /for
statement, list of sources and uses of funds, and estimated fiscal impacts of the
project public improvements and on fire and police protection) for drafting
necessary documentation sent to Ehlers.
May 13, 2010 HEDRA requests that the City Council call for a public hearing on the proposed
Modification to the Redevelopment Plan for the Vermillion Street Redevelopment
Area and the proposed establishment of Tax Increment Financing District No. 5.
HEDRA Board provides guidance to staff on whether Linn Investment Properties,
LLC., should be requested to pay for all or a portion of the cost of establishing Tax
Increment Financing District No. 5; and other HEDRA out -of- pocket costs
associated with the project, such as legal fees.
May 17, 2010 City Council calls for public hearing on the proposed Modification to the
Redevelopment Plan for the Vermillion Street Redevelopment Area and the
proposed establishment of Tax Increment Financing District No. 5.
May 21, 2010 Ehlers confirms with the City whether building permits have been issued on the
property to be included in Tax Increment Financing District No. 5.
June 4 2010* Project information submitted to the County Board for review of county road
impacts if necessary* (at least 45 days prior to public hearing). *The County Board,
by law, has 45 days to review the TIF Plan to determine if any county roads will be
impacted by the development. Because the proposed tax increment financing
district may require unplanned county road improvements, the TIF Plan will be
forwarded to the County Board 45 days prior to the public hearing. Please be aware
that the County Board could claim that tax increment should be used for county
roads, even after the public hearing. [Ehlers will fax & mail on or by June 4, 2010.]
EHLERS
LEADERS IN PUBLIC FINANCE
SCHEDULE OF EVENTS - PAGE 2
HASTINGS ECONOMIC DEVELOPMENT
AND REDEVELOPMENT AUTHORITY
AND THE CITY OF HASTINGS
DAKOTA AND WASHINGTON COUNTIES, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE VERMILLION STREET REDEVELOPMENT AREA
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 5
(a redevelopment district)
June 8, 2010 Letter received by Dakota County Commissioner giving notice of potential
redevelopment tax increment financing district (at least 30 days prior to publication
of public hearing notice.) [Ehlers will fax & mail on or by June 8, 2010.]
June 18, 2010 Fiscal/economic implications received by School Board Clerk and County Auditor
(at least 30 days prior to public hearing). [Ehlers will fax & mail on or by June 18,
2010.]
July 1, 2010 Ehlers conducts internal review of Plans.
July 8, 2010 Date of publication of hearing notice and map (at least 10 days but not more than 30
days prior to hearing). [Hastings Star Gazette publication deadline, July 2, 2010, at
12:00 P.M. Ehlers will submit notice, map, and instructions to newspaper on or
before July 2, 2010, via email at legals @hastingsstargazette.com.]
July 8, 2010 HEDRA considers the Plans and passes a resolution adopting the Plans. [Ehlers will
send packet information, via email, to the HEDRA on or by July 1, 2010.]
HEDRA passes resolution authorizing an interfund loan in connection with Tax
Increment Financing District No. 5.
July 12, 2010 Planning Commission reviews the Plans to determine if they are in compliance with
the City's comprehensive plan. [Ehlers will send packet information, via email, to
the City on or by July 1, 2010.]
July 19, 2010 City Council holds public hearing at 7:00 P.M. on a Modification to the
Redevelopment Plan for the Vermillion Street Redevelopment Area and the
establishment of Tax Increment Financing District No. 5 and passes a resolution
approving the Plans. [Ehlers will send Council packet information, via email, to the
City on or by July 12, 2010.]
TBD Ehlers files TIF Plan with the MN Department of Revenue and the Office of the
State Auditor, and requests certification of Tax Increment Financing District No. 5
with Dakota County.
An action under subdivision 1, paraSraph (a), contesting the validity of a determination by an authority under section 469.175,
subdivision 3, must be commenced within the later of:
(1) 180 days after the municipality's approval under section 469.175, subdivision 3; or
(2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177, subdivision 1.
EHLERS
LEADERS IN PUBLIC FINANCE