HomeMy WebLinkAbout1998.07.20 RESO 1998-0024RESOLUTION NO. 1998-24
RESOLUTION APPROVING THE ESTABLISHMENT OF
REDEVELOPMENT PROJECT AREA NO.1 AND THE
ADOPTION OF A REDEVELOPMENT PLAN FOR THE AREA
WHEREAS, the City Council (the "Council") of the City of Hugo, Minnesota (the "City") has conducted
a public hearing pursuant to the requirements of Minnesota Statutes, Section 469.028 for the purpose of
establishing a redevelopment project area and adopting a redevelopment plan; and
WHEREAS, Council determines that it is desirable and in the public interest to undertake and cant' out
the redevelopment plan;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota, as follows:
1. The Redevelopment Plan (the "Plan") for Redevelopment Project Area No. 1 (the "Area") dated July
20, 1998 is hereby adopted. The Plan will become effective upon its approval and adoption by the
Economic Development Authority for the City of Hugo (the "EDA").
2. In adopting the Plan, the Council finds:
a. The area described as the Redevelopment Area in the Plan is a Redevelopment Project within the
meaning of Minnesota Statutes, Section 469.002, Subd. 14.
b. The Plan and the Project will carry out the purpose and policy of Minnesota Statutes, Chapter 469.
c. The Plan assists in affording the maximum opportunity for the redevelopment of the area by
private enterprise.
d. It is found and determined that the Plan conforms to the general plan for the development of the
City as a whole.
3. The EDA is authorized and directed to take actions necessary to undertake the Plan.
Adopted by the City Council this 20th day of July, 1998.
Mayor
ATTEST:
N.V4MS0TAW UGMDMAPP_PLAN. W PD
REDEVELOPMENT PLAN
FOR
REDEVELOPMENT PROJECT AREA NO. 1
(FIRE STATIONS PROJECT)
ECONOMIC DEVELOPMENT AUTHORITY
CITY OF HUGO
JULY 20,1998
INTRODUCTION
A. Definitions
Each of the words and terms defined in this Section shall for all purposes of the Plan, have the
meanings given to them in this Section:
I . "Authority or EDA" means the Economic Development Authority of the Hugo, MN also
the "EDA."
2. "Bond Resolution" means any and all resolutions, ordinances, trust indentures or other
documents under which any Bonds are sold, issued or secured.
3. "Bonds" means the Public Project Revenue Bonds, Series 1998D and any other
obligations issued by the Authority or the City, the principal of and interest on which are
payable in whole or in part out of the lease payments funded from revenue of the project
to finance or provide for the payment of the Project Costs.
4. "City" means the City of Hugo, Minnesota.
5. "Land" means the property on which the Project is to be constructed.
6. "Plan" means the Redevelopment Plan for the Project Area as approved and as
supplemented and amended from time to time by the Board of Commissioners of the
Authority and the City Council.
7. "Project" means fire stations and related facilities to cause to be constructed by the EDA
and sold to the City under a lease purchase agreement.
8. "Project Area" means the Redevelopment Project Area defined and designated by this
Plan.
9. "Project Costs" means the total amount expended and to be expended by the Authority
on Redevelopment Activities as provided in this Plan.
10. "Redevelopment Activities" means all actions taken or to betaken by the Authority in
establishing, implementing and carrying out the Project.
B. Intent and Statement of Need
The EDA of the City of Hugo proposes to cause to be constructed a municipal fire station in
conjunction with the development of the Bald Eagle Industrial Park. The City will lease the
Project from the EDA with an option to purchase pursuant to a lease and option to purchase
agreement. Bonds in the principal amount not to exceed $1,165000 are proposed to be sold by
the EDA to finance the acquisition and construction of the Project. The Bonds will be secured
by the payments to be made by the City under the lease and option to purchase agreement.
Redevelopment Plan For Redevelopment Project Area No. I Page 1
There is a need for development and redevelopment within the Project Area which will result
in an increase in employment opportunities for residents of the City, an increase in the value of
property subject to taxation by the City and other local government units and an increase in
general economic activity in the City, all of which will reduce unemployment, prevent chronic
unemployment, improve living standards, promote desirable development of land which is
presently unused at a cost reasonably related to the public purpose to be served without major
clearance and with full consideration of the preservation of beneficial aspects of the urban and
natural environment, prevent the emergence of blighted property and areas, prevent the loss of
skilled and unskilled labor and other human resources, and encourage and enhance the general
health and welfare of the residents of the City. The actions herein purposed to be taken by the
Authority pursuant to the Plan are necessary to secure the development of the property
included in the Project Area at this time and in a manner which will best meet those needs.
C. Statement of Authority
The EDA exercises the powers granted under Minnesota Statutes, Sections 469.001-469.047
(Housing and Redevelopment Authority Act) which grants municipalities the authority to
designate redevelopment areas within the boundaries of the municipalities. Within these
areas, the municipality may adopt a redevelopment plan and establish a project consistent with
the municipality's public purpose. The Project as contemplated by this Plan consists of a
redevelopment project as defined in Section 469.001, Subdivision 14. The lease with option
to purchase agreement is authorized under Minnesota Statutes, Section 465.71.
D. Findings and Declaration
The City and the EDA make the following findings:
I . The certain parcels of land in the project area would not be made available for
redevelopment without some public financial aid.
2. The redevelopment plans for the Redevelopment Area in the City will afford maximum
opportunity consistent with the needs of the locality as a whole, for the redevelopment
of the area by private enterprise.
3. The Redevelopment Plan conforms to the general plan for development of the locality as
a whole.
E. Redevelopment Area Boundaries
The boundaries of the Redevelopment Area are coterminous with the boundaries of the City's
Tax Increment Financing District No. 1-1. The parcels included in the Redevelopment Area
appear in Exhibit A. All land included in the Project Area is within the legal boundaries of the
City.
Redevelopment Plan For Redevelopment Project Area No.1 Page 2
II. REDEVELOPMENT PLAN
A. Redevelopment Plan Objectives
The EDA, through implementation of this plan, seeks to achieve the following objectives:
1. To promote and seek the orderly and harmonious development of the Redevelopment
Area.
2. To provide logical and organized land use for the entire Redevelopment Area consistent
with the Comprehensive Land Use Plan and the Zoning Ordinance of the City.
To promote the prompt development of property in the Redevelopment Area with a
minimal adverse impact on the environment.
4. To provide general design guidance in conjunction with a suitable development contract
in order to enhance, the physical environment of the area.
To provide adequate utilities and other public improvements and facilities, to enhance
the Redevelopment Area and the City for new and existing development.
6. To assist the financial feasibility of private projects to the extent necessary and where
there is a corresponding level of public benefit.
7. To enhance the overall economy of the City and surrounding area by retaining current,
and providing additional, employment opportunities for the residents of the City and
surrounding community.
8. To increase the City's tax base.
9. To stimulate development and investment within the Redevelopment Area by private
interest.
B. Land Use
The proposed land use for the Redevelopment Area is the construction of a fire station and the
development of the Bald Eagle Industrial Park. The fire station will be built on a vacant parcel
owned by the City in the Industrial Park.
C. Redevelopment Activities
1. Acquisition
The City presently owns the property in the Redevelopment Area on which the Project
will be located. All other parcels in the Redevelopment Area are designated for
potential acquisition as may be needed to achieve the objectives of this Redevelopment
Redevelopment Plan For Redevelopment Project Area No.1 Page 3
Plan.
2. Relocation
It is not expected that any persons will be displaced as a result of this Redevelopment
Plan.
Project
The EDA proposes to cause to be constructed the Project on property within the
Redevelopment Area. Upon completion, the Project will serve as the primary fire
station for the City. Operations will move from the current location adjacent to the City
Hall.
D. Financing Plan
Project Budget
The table below proposed budget for the Project.
Project Costs $1,100,000
Finance Expense 23,400
Discount 18,600
Capitalized Interest 23,000
Total Funding $1,165,000
The items of cost and the costs thereof shown above are estimated to be necessary based
upon the qualified appraisers, consultants, legal and cost information now available. It
is anticipated that the items of cost and the costs thereof shown in each category above
may decrease or increase, but that the total project cost will not exceed the amount
shown above.
2. Source of Funds and Security
The City is entering into the lease with option to purchase agreement with the EDA
pursuant to Minnesota Statutes, Section 465.71. The lease with option to purchase
agreement is payable from general sources including taxes, and its payment is not
limited to a specific fund or specific source of revenues.
3. Bond Issue Details
The Authority will issue approximately $1,165,000 in Bonds. The Bonds would
mature in the years 2000 through 2014.
Redevelopment Plan For Redevelopment Project Area No. i Page 4
S
E. Development Standards
The Authority will consider among other things, the following factors when evaluating
development proposals for projects within the Redevelopment Area seeking public assistance
and support:
Degree to which redevelopment objectives are provided for or enhanced.
2. Consistency with this Plan and the City's Comprehensive Plan.
3. Any private developer's ability to perform both from a standpoint of financial ability to
perform and the necessary experience and expertise to complete the proposed
development.
F. Environment Controls
It is presently anticipated that the proposed development in the Redevelopment Area will not
present major environmental problems. All municipal actions, public improvements, and
private development will be carried out in a manner that will comply with applicable
environmental standards. The environmental controls to be applied within the area are
contained within the codes and ordinances of the City.
G. Administration of Project
The City Council has authorized the Authority to be responsible for seeing that the contents of
this Plan are promoted, implemented and enforced. .
H. Modification of Plan
The Redevelopment Plan may be modified at any time. The modification must be adopted by
the Authority and the City, upon notice and after the public hearing required for the original
adoption of the Redevelopment Plan.
Changes that do not alter or affect the exterior boundaries and do not substantially alter or
affect the general land use established in the Plan, shall not constitute a modification of the
Redevelopment Plan, nor require approval by the City.
CAPROIECTSOUGMENERA WMPLAN.WD
Redevelopment Plan For Redevelopment Project Area No.1 Page 5
EXHIBIT A
REDEVELOPMENT AREA
The boundaries of the Redevelopment Area coincide with the boundaries of the City's Tax Increment
Financing District No. 1-1. As such, the Redevelopment Area contains the following parcels:
35029-2600 (site 2 - southernmost site)
35029-2610 (site 2 - southernmost site)
35135-5950 (site I - northernmost site)
35135-6200 (site 1 - northernmost site)
35135-6250 (site 1 - northernmost site)
35135-6350 (site 1 - northernmost site)
35135-6355 (site 1 - northernmost site)
35135-6358 (site I - northernmost site)
35135-7350 (site 1 - northernmost site)
35135-7400 (site I - northernmost site)
35135-7450 (site I - northernmost site)
35135-7525 (site 2 - southernmost site)
35135-7540 (site 2 - southernmost site)
35135-7550 (site 2 - southernmost site)
35135-7560 (site 2 - southernmost site)
93029-2600 (site 2 - southernmost site)
93029-2750 (site 2 - southernmost site)
93029-2800 (site 2 - southernmost site)
93029-2850 (site 2 - southernmost site)
93029-3050 (site 2 - southernmost site)
93029-3100 (site 2 - southernmost site)
93030-2000 (site 2 - southernmost site)
93030-2010 (site 2 - southernmost site)
93030-2020 (site 2 - southernmost site)
93030-2150 (site 2 - southernmost site)
93080-2000 (site 2 - southernmost site)
93080-2050 (site 2 - southernmost site)
93080-2060 (site 2 - southernmost site)
93080-2062 (site 2 - southernmost site)
93080-2065 (site 2 - southernmost site)
93080-2100 (site 2 - southernmost site)
93080-2300 (site 2 - southernmost site)
93080-2342 (site 2 - southernmost site)
93080-2344 (site 2 - southernmost site)
Redevelopment Plan For Redevelopment Project Area No.1 Page 6