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HomeMy WebLinkAbout02/28/1984 TENTATIVE AGENDA ADJ .REG.SESSION SHAKOPEE , MINNESOTA FEBRUARY 28 , 1984 Mayor Reinke presiding 11 Roll Call at 5 : 30 P .M. at Capone ' s Restaurant, Shakopee, Minn. 21 Goals And Objectives Session with Department Heads 3] 8 :45 P.M. recess 4] 9 :00 P.M. reconvene in Council Chambers, 12.9 East First Avenue 51 Recess for H.R.A. Meeting 61 Reconvene 71 9 :00 P.M. PUBLIC HEARING - Modification of Redevelopment Plan of Valley Industrial Park Redevelopment Project No. 1 8] Res. No. 22.26, Approving the Modification and Re-designation by the Housing and Redevelopment Authority in and for the City of Shakopee of Valley Industrial Park Redevelopment Project No. 1 to Minnesota River Valley Housing and Redevelopment Project No . 1 and the Redevelopment Plan Relating Thereto 91 Res. No. 2227, Approving and Authorizing the Execution of a Contract for Private Development with Minnesota Racetrack Limited Partnership (bring contract distributed Feb . 21st , 1984) 101 PUBLIC HEARING - Proposed Tax Increment Financing Plan for Tax Increment District No. 4 111 Res. No. 2228, A Resolution Relating to the Establishment by the Housing and Redevelopment Authority in and for the City of Shakopee of Proposed Tax Increment District No. 4 and Giving Preliminary Concept Approval Thereto 121 Other Business : a] Res. No. 2229, Approving Design Dev lopment Drawing for Racetrack cl 1.3] Adjourn to Wednesday, February 29 , 1984 at 12 :00 P.M. at Capone ' s Restaurant , Shakopee, Minnesota, for continuation of Goals and Objectives Session with Department Heads John K. Anderson City Administrator 1 A JOINT GOALS & OBJECTIVES WORKSHOP FOR CITY COUNCIL MEMBERS AND THEIR ADMINISTRATIVE STAFF SHAKOPEE, MN. - FEBRUARY, 1984 Introduction: Many appointed and elected policy-making bodies are recognizing the importance and necessity of paying attention to the decision- making and communication processes they use and the procedures by which these entities carry out the business of governing. There is also a growing awareness that there is a need for a high degree of collaboration and joint problem-solving between Council members and Staff in order to effectively address the complex issues facing today' s decision-makers . Workshop Objectives : Recognizing this need, Shakopee has been taking steps over the last three years to improve Council , Staff and citizen communi- cation through clearly stated Council goals and objectives , established Council meeting procedures , and an evaluation of the Council Staff relationship by Staff and Council . The objec- tives of this workshop are to : • Improve communications and information flow. • Generate more effective methods for problem-solving, resolving conflict , and setting priorities . • Establish improved guidelines for handling the overlap in policy-administration roles . • Develop greater collaboration in the working relationships among and between Council members and Administrative Staff. Expected Results : This workshop will offer the City Council members and Staff an opportunity to deal more effectively with each other around such issues as : • Roles and responsibilities . • Group decision making capabilities . • Decision making for public policy. • Responsiveness to citizens . • Council Meeting procedures - making decisions in a public forum. • Commitment of both human and physical (equipment ) resources to stated goals and objectives . City Council members and Staff can anticipate the Workshop to have the following results : • Increased competence in problem-solving and decision-making. • Improved communication. • Increased ability to anticipate and adapt to change . • Increased efficiency, economy and creativity. JKA/bn Tuesday' s Workshop Agenda : 5 : 30 p.m. - Tuesday, February 28, 1984, arrive at Copone ' s Restaurant Note : No action will be taken. The meeting is- open to the - public and press . who have "received the normal notification of the meeting. ) 5 : 35 p.m. - Order dinner from the menu. 5 :45p.m. - Brief introduction by the Mayor. Brief review of the Workshop' s goals , s , review of Agenda and response to questions by the City Administrator. 6 :00 p.m. - Dinner served. 66 :40 p.m. - Listing ' 83 successes and failures , organizational strengths and weaknesses , and City problems and needs ( short and long term) . 1 . Only one item, whether listing a problem or a success , should be listed on each sheet of paper provided . 2 . Items should be listed whether or not they are on the present 1983 Goals & Objectives list ( this Workshop is a joint Council/Staff effort to create ' 84 Goals & Objectives . ) 3. Items need not be limited to things that the City can deal with itself, but can include schools , County Government , State Government, etc . 4. Questions you may find helpful in examining Shakopee ' s needs are : Do we have problems in the areas of • Protection of life • Replacement of obsolete • Provision of essential services facilities • Expansion of services • Maintenance of public health • Financing • Protection of property • Political (citizenry) • Cost reduction/increased performance acceptance of programs or services 7 : 30 p.m. - Review of 183 Goals & Objectives . 1 . Using an overhead projector discuss items on the present list of 1983 Goals & Objectives . 2 . Development of a consensus of which item( s ) are completed and should be dropped from the 1984 list of Goals & Objectives . 3 . This is only the initial discussion to determine what items will be discussed in detail on Wednesday afternoon, February 29th so we can arrive at the necessary action to be taken in ' 84. 8 :45 p.m. - Adjourn to City Hall . Wednesday' s Workshop Agenda : 12 : 00 p.m. - Wednesday, February 29, 1984, arrive at Capone ' s Restaurant . 12 : 05 p.m. - Order lunch from the menu. ..gib Workshop Agenda Page 2 February 24, 1984 12 : 15 p.m. - Listing of new 1984 and old 1983 Goals & Objectives . 1 . Prioritizing Shakopee ' s 1984 Goals & Objectives . 2. Planning action to be taken for 1984 Goals & Objectives . 12 : 30 p.m. - Lunch served. 1 : 15 p.m. . - Reconvene - 12 : 15 p.m. discussions . 4: 00 p,m. - Workshop wrap-up by City Administrator. 1 . What went right , what went wrong? 4: 15 p.m. - Adjourn. Note : This agenda is a guide and Council members and Staff should .feel free to go back to earlier discussion, etc . We don' t want structure to inhibit discussion. JKAjbn. TENTATIVE AGENDA Housing Authority in and for the City of Shakopee , Minnesota City Hall Council Chambers Special Session February 28 , 1984 Chairman Colligan presiding 1 . Roll Call at 9 : 00 p.m. 2 . Approval of the Minutes of February 14, 1984 3 . Tax-Increment Financing Proposal a . Adopt Resolution No. 84-3 - A Resolution Approving A Contract for Private Development with Minnesota Racetrack , Inc . , and the Sale of Certain Land by the Authority Pursuant Thereto. b. Adopt Resolution No. 84-4 - A Resolution Extending the Period During Which the City Council of the City of Shakopee May Hold the Proposed Tax Increment Financing Plan for Tax Increment District No. 4 for Review. 4 . Other business 5 . Adjourn Jeanne Andre Executive Director PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADJ. REG. SESSION SHAKOPEE, MINNESOTA FEBRUARY 14, 1984 Chrm. Colligan called the meeting to order at 8;53 p.m. with Comm. Leroux, Wampach and Vierling present. Comm. Lebens was absent. Also present were Mayor Reinke; HRA Director Jeanne Andre; City Admr. John K. Anderson; City Clerk Judith S. Cox; City Engineer H. R. Spurrier and Ass't City Attorney Rod Krass. The City Admr. explained the comment made by a Planning Commission member who does not want any proceeds from the re-financed Kmart tax increment district spent to help the racetrack, even off-site improvements. This member wants all of the proceeds spent on the downtown redevelopment. The City Admr. pointed out this was a comment made by one member, and not a consensus of the Commission. Discussion followed regarding the advisability of using some of the proceeds for off-site improvements to aid traffic flow in the entire area. The City Admr. said that if HRA wants to make boundary changes as recommended by the Planning Commission, that direction can be given now, but because of time limits the changes would not be made now, but included in the next revi- sion. Vierling/Leroux moved to direct staff to bring back at a later date boundary changes regarding Fourth Avenue and the intersection of CR16 and CR83, as sug- gested by Planning Commission. Motion carried unanimously. Leroux/Vierling moved to receive the Planning Commission comment regarding not using increments from Kmart tax increment district to benefit the racetrack, and to inform Planning Commission that HRA might consider off-site traffic improvements with Kmart funds. Discussion followed about tying HRA down to one policy now. Leroux/Wampach moved to amend the motion to eliminate any comments, and merely receive and place on file the Planning Commission comments. Motion to amend carried unanimously. Main motion as amended carried unanimously. Arlen Weltee, of O'Connor & Hannon, explained the combined tax increment dis- trict and housing and redevelopment plan. She said she put the two plans to- gether to shorten the process a little. She said there has been a change in State law which refers to project costs instead of tax increment costs, so they can be put together. She said she added a clarification of the legal descrip- tion and reviewed the background of the re-development plan and tax increment district. The Ass' t City Attorney pointed out that it must be kept in mind that the HRA is using Kmart increment funds on the racetrack site, because part of the dis- trict for the racetrack is within the expanded Kmart district. He said the costs used for the racetrack will be broken out and identified. Leroux/Wampach offered Resolution No. 84-2, A Resolution Modifying the Rede- velopment Plan for Valley Industrial Park Redevelopment Project No. 1 and Re- designating it as Modified Housing and Redevelopment Plan for Minnesota River Valley Housing and Redevelopment Project No. 1 and Establishing Tax Increment District No. 4 and Adopting a Tax Increment Financing Plan Relating Thereto, and moved its adoption. Shakopee HRA February 14, 1984 ' Page 2 Roll Call: Ayes; Unanimous Noes; None Motion carried. Comm. Leroux pointed out an error in the Developer's Agreement, where it states 390 square feet instead of 390 acres. Leroux/Vierling moved to adjourn to February 21, 1984. Motion carried unani- mously. Meeting adjourned at 9:33 P.m. Jeanne Andre HRA Director Diane S. Beuch Recording Secretary 1J -o •a •-o -o -0 -o -0 0 -0 c so r� -0 m `oma -o -o -a -a -o -0m0) Mww w V a- Ln W t J +- O -0 00 V CA Ln -11 i? 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Vp iW t-• rulW00 m w i bwWrJ �- µ r-.) .03 M. o t (14 -a O tr t Ln 03 �j c,) m o -a corJroLlIli G1'JLgw2, e:1 m3 r•) W rJ t3 W Lq 0 Ll ;J CO _ U: C• fj Cr- W I 0 W 0 (D w r- C ---t ) C, vJ t` ` W 0O m O O ) -a r•J r•3 -a --0 -a C m 1Wr.) r) 0 CC- O m " Ll O _t> O S> W D m W _a 0 co Ll C) C) rJ O z rJ rJ p -a c ? m m -► ARTICLE VII Undertakings of the City and Authority; Tax Increment Bonds Section 7 . 1 . Issuance of Tax Increment Bonds . The City and Authority agree that upon award of the Franchise to the Company, the City and the Authority shall take all steps necessary to issue and the City shall issue its Tax Incre- ment Bonds in an amount sufficient to finance the City ' s and Authority' s obligations to the Company hereunder , including purchase of the Development Property pursuant to the terms of Article III and construction and installation of the Offsite Improvements as provided in Section 7 . 2 . Such steps shall include, but shall not be limited to, final approval of the Tax Increment District and submission to the Auditor of the County for certification of the original assessed value of the Tax Increment District . The City shall issue the Tax Increment Bonds at such time as shall be necessary and desirable to facilitate the Project and effect the pur- chase of the Development Property by the Authority, as mutu- ally agreed by the City, the Authority and the Company. The City' s obligation to issue the Tax Increment Bonds shall be subject to the limitations provided in Section 7 . 3 hereof, but shall otherwise be unconditional . Section 7. 2 . Provision of Offsite Improvements . As consideration for the execution of this Agreement and con- struction of the Minimum--- Improvements by the Company, the City and the Authority agree to undertake and finance the following public development costs of improvements located within the Redevelopment Project but off the Development Property ( the Offsite Improvements" ) , provided that the City and Authority shall have no obigation to spend in excess of $2,900 ,000 to construct the Offsite Improvements, and fur- ther provided that the Company has caused all related par- ties to it, including any shareholders in the Company or general partners in any affiliated partnerships, to ( i ) dedicate such land as is owned by such related parties as is necessary for the construction of the Offsite Improvements to the City without cost and ( ii ) execute, to the extent such related persons are the owners of benefitting proper- ties, special assessment agreements providing for (A) reim- bursement of 73% of the construction cost of the Offsite Improvements listed in clause (d) below (estimated to be approximately $420 , 000 ) , and (B) reimbursement of 38% of the construction cost of the Offsite Improvements listed in clause (g) below (estimated to be approximately $130 , 000 ) , such special assessment agreements to be subject to the terms provided below: 7 - 1 Total Estimated Improvement Type Construction Cost (a) Signalization and intersection upgrading at Valley Park Drive and TH 101 $ 220 , 000 (b) Signalization and intersection upgrading at TH 101 and CR 83 180 , 000 (c) Signalization and intersection upgrading at north-south collector street and TH 101 215, 000 (d) Construct previously planned four lane, 9-ton, urban design (excluding storm sewer ) Valley Industrial Park east-west roadway between Valley Park Drive and CR 83 575 , 000 (e) Construct previously planned four lane, 9-ton, urban design north- south collector street from TH 101 south to 4th Avenue 225 , 000 ( f) Widen CR 83 to a four lane, urban design roadway from TH 101 to north entrance to racetrack 185, 000 -- (g) Widen and overlay Valley Park Drive to a four lane, 9-ton, urban/rural roadway from TH 101 to proposed east- west roadway intersection ( including 1, 000-foot urban extension) 345 , 000 (h) Widen and overlay Fourth Avenue to a two lane, 9-ton, rural design roadway from CR 83 to the proposed north- south collector street including right-turn and gravel shoulders 274, 000 ( i ) Intersection improvements and signal_ revisions at TH 101 and CR 18 90 , 000 Total Construction Cost : $2 , 309 , 000 ( j ) Engineering, Legal and Contingency Costs 390 , 000 ( k ) Additional right-of-way cost for property not owned by the Company or any related parties thereto 150 , 000 GRAND TOTAL: $2 ,849 , 000 7 - 2 All costs of the Offsite Improvements in excess of $2, 900, 000 shall be the obligation of the Company unless otherwise agreed. Any special assessment agreements exe- cuted pursuant to this Section 7 . 2 shall be subject to the following terms : ( i ) payment of any assessment levied upon unimproved property shall be deferred, subject to the applicable provisions of law, until the construction of improvements on the properties assessed, and ( ii ) no inter- est shall accrue with respect to any deferred payments during the deferral period, and shall thereafter accrue and be payable in the manner provided in the resolution autho- rizing such assessments . The City and the Authority shall construct the Offsite Improvements as necessary to coincide with construction of the Minimum Improvements by the Com- pany; in this regard, the Company shall keep the City and Authority notified as to construction progress on the Mini- mum Improvements . The obligation of the City and the Authority to construct and install the Offsite Improvements shall additionally be subject to the provisions of Section 7 . 3 . Section 7 . 3 . Limitations on Financial Undertakings of the City. The provisions of Sections 7 . 1 and 7 . 2 notwith- standing, neither the City nor the Authority shall have any obligation to the Company under this Agreement to issue the Tax Increment Bonds or to commence or continue construction of the Offsite Improvements except upon the continuing exis- tence of the following conditions: ( i) The Company has been awarded the Franchise and the Franchise remains in good standing and no material and meritorious litigation has been commenced and is continuing with respect to the Franchise or the Company which, if resolved unfavorably to the Company, would result either in revocation of the Franchise or in the inability of the Company to proceed with the Project; ( ii) The City and the Authority are not entitled under Section 10 . 02 to exercise any of the remedies set forth therein as a result of an Event of Default; and ( iii) There has not been, nor does there occur , a substantial change for the worse in the financial re- sources and ability of the Company, or a substantial decrease in the financing commitments secured by the Company for construction of the Minimum Improvements, which change( s) makes it substantially more likely, in the reasonable judgment of the City and the Authority, that the Company will be unable to fulfill its covenants and obligations under this Agreement . 7 - 3 Section 7 . 4 . Use of Tax Increments . The Authority shall be free to use any tax increments received from the Tax Increment District for any purpose, consistent with any covenants made with respect to the Tax Increment Bonds , for which such increments may lawfully be used pursuant to the provisions of Minnesota Statutes , Chapter 462 and Section 273 . 75, subd. 4, and the Authority shall have no obligations to the Company with respect to the use of such increment . _ 7 - 4 February 28, 1984 Dean Brunkow 508 Minnesota St. Shakopee, MN 55379 Jeanne A. Andre and Housing and Redevelopment Authority 129 E. 1st Ave. Shakopee, MN 55379 Re: Mortgage dated 9-29-81 in the original amount of $7,200 Dear Ms. Andre: I am currently refinancing my home located at 508 Minnesota St. Shakopee, MN. I need the current balance on the above mentioned note so that I can qualify for financing Please confirm this figure in writing. I would also like to -request of you to sub- ordinate this note to a new mortgage. Please act on this request tonight, as time is of the essence. Thank you for your anticipated co-operation. Sificerely, / Dean K. Brunkow srt lZC : Alt yyw.�-�-�z� zo 9� /dam C,/Z, .�, /ar Gtn w awn- CAW C� c� of Da Flo �naL . Du n a cetiti 07V tK c n?a cey, •cry oG G aCs , �, . ate. a 1-7 a�l'Cdur' o7U 74.2 PROMISSORY NOTE FOR PAYMENT UPON RESALE BY HOMEOWNER FOR VALUE RECEIVED, Dean K. & Ingeborg Brunkow (Homeowner) promises . to pay to the Housing and Redevelopment Authority in and for the City of Shakopee (Authority) Seven Thousand Two or order, the principal sum of Hundred and no/100------- Dollars ($ 7200 ) , on the date of resale by the Homeowner of the property located at 508 Minnesota Street , and described as Lot 9 , - Block 3 , Macey Second Addition, Shakopee , Scott County, Minnesota . Such principal sum shall be reduced automatically by twenty percent (20%) of the initial amount at the end of each year of such residency, as a Homeowner, and this note shall terminate at the end of five (5) years of such residency, as determined by the Authority; provided , however , that the amount payable under this note shall in no event be more than the net profit on the resale , that is , the amount by which the resale price exceeds the sum of (1) the Home- owner' s purchase price , (2) the costs incidental to his acquisition of ownership, (3) the costs of the resale , including commissions and mortgage prepayment penalties ," if any, and (4) the increase in value of the Home , determined by appraisal , due to improvements paid for by the Homeowner. Any amount Homeowner is required to pay Authority under the terms of this note shall bear interest at the rate of eight percent (87e) per annum from the date hereof . If the Homeowner shall pay this note at the time and in the manner set forth above , or if , by its provisions , the amount of this note shall be zero (0) , then the note shall terminate and the Authority shall , within thirty (30) days after written demand therefor by the Homeowner, execute a release and satisfaction of this note . The Homeowner hereby waives the benefits of all statutes or laws which require the earlier execution or delivery of such release and satisfaction by the Authority. Presentment , protest and notice are hereby waived . r Dated : V g 19 F) ) By: 7sing and Redevelopment Authority in an 'for the City of Shakopee c and S . ITullAfider, Chairman rt�i'Z.e.e 7 • ,� Dolores M . Lebens , Secretary State of Minnesota ) ss . County of A114 ) On this day of j!f ,o� 19 ,f1 before me , a notary public within and for said County personally appeared Richard S . Hullander and Delores M. Lebens to me personally known , who , being each by me duly sworn did say that they are respectively the Chairman and the Secretary of the Housing and Redevelopment Authority in and for the City of Shakopee , the corporation named in the foregoing instrument , and that said instrument was signed on behalf of said corporation by authority of its members and said Richard S . Hullander and Delores M. Lebens acknowledged said instrument to be the free act and deed of said Housing and Redevelop- ment Authority. -».. . ....r. JEANNE A. ANDRE Notary Public•Minnesota By : Hennwpin County My Comm.Exp.bI=. ZX H eowner t el C omeo er e r Subscribed and sworn to before me this day of , 19 MODIFIED HOUSING AND REDEVELOPMENT PLAN FOR MINNESOTA RIVER VALLEY HOUSING AND REDEVELOPMENT PROJECT NO. 1 (FORMERLY VALLEY INDUSTRIAL PARK REDEVELOPMENT PROJECT NO. 1) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF SHAKOPEE, MINNESOTA APPROVED BY THE CITY COUNCIL February 28, 1984 This document was drafted by: O'CONNOR & HANNAN 3800 IDS Tower 80 South Eighth Street Minneapolis , Minnesota 55402 612/341-3800 MUNICIPAL ACTION TAKEN Based upon the statutory authority described in the Modified Housing and Redevelopment Plan attached hereto and the public purpose findings by the Commissioners and for the purpose of fulfilling the Authority ' s housing and redevelop- ment objectives as set forth in the Modified Housing and Redevelopment Plan, the Commissioners have created, estab- lished and designated the Minnesota River Valley Housing and Redevelopment Project No. 1 pursuant to and in accordance with the requirements of Minnesota Statutes, Sections 462 . 411 through 462 . 716, inclusive, as amended ( the "Housing and Redevelopment Act" ) . The following municipal action was taken in connection therewith: January 2 , 1979 : The Redevelopment Plan for the Valley Industrial Park Redevelopment Project No. 1 was adopted by the City Council . July 17 , 1979 : The Redevelopment Plan for the Valley Industrial Park Redevelopment Project No. 1 was modified by the City Council by expansion of the geographic area. February 28, 1984 : The Redevelopment Plan for the Val- ley Industrial Park Redevelopment Project No. 1 was further modified by the City Council by expansion of the project area and redesignation as Minnesota River Valley Housing and Redevelopment Project No. 1 . TABLE OF CONTENTS (This Table of Contents is not part of the Modified Housing and Redevelopment Plan and is only for convenience of reference . ) PAGE SECTION I . MODIFIED HOUSING AND REDEVELOPMENT PLAN FOR MINNESOTA RIVER VALLEY HOUSING AND REDEVELOPMENT PROJECT NO. 1 Subsection 1 . 1 . Definitions. • . . . . . . . . . . . . . . . . . . . .1-1 Subsection 1. 2 . Statement and Finding of Public Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2 Subsection 1 . 3 . Statutory Authority. . . . . . . . . . . . . . . .1-4 Subsection 1 . 4 . Statement of Objectives . . . . . . . . . . . .1-5 Subsection 1 . 5 . Boundaries of Housing and Redevelopment Project No . 1 . . . . . . . . 1-7 Subsection 1 . 6 . Parcels to be Acquired in Whole or in Part Within Housing and Redevelopment Project No. 1 . . . . . . . 1-10 Subsection 1.7 . Estimated Public Improvement Costs and Supportive Data . . . . . . . . . 1-12 Subsection 1.8. Public Improvements and Facilities Within Housing and Redevelopment Project No. 1 . . . . . . . 1-12 Subsection 1 .9 . Environmental Controls . . . . . . . . . . . . 1-13 Subsection 1.10 . Proposed Reuse of Property. . . . . . . .1-13 Subsection 1 . 11 . Administration and Maintenance of Housing and Redevelopment Project No. 1 . . . . . . . . . . . . . . . . . . . . . 1-14 Subsection 1.12 . Rehabilitation. . . . . . . . . . . . . . . . . . . .1-14 Subsection 1 .13 . Relocation. . . . . . . . . . . . . . . . . . . . . . .1-14 Subsection 1 . 14. Redevelopment Obligations . . . . . . . . .1-14 EXHIBIT I-A Boundary Map of former Valley Industrial Park Redevelopment Project No. 1 As Established on January 2 , 1979 . . . . . . . . . . . . . . . . . . . . . . I-A-1 EXHIBIT I-B Boundary Map of Modified Valley Industrial Park Redevelopment Project No. 1, as Modified on July 17 , 1979 . . . . . . . . . . . . I-B-1 EXHIBIT I-C Boundary Map of redesignated Modified Minnesota River Valley Housing and Redevelopment Project No. 1 as Modified on February 28, 1984 . . . . . . . . . . . . . . . . . . . . I-C-1 ( i) APPENDIX A ADMINISTRATIVE GUIDE FOR THE ADMINISTRA- TION OF THE MODIFIED HOUSING AND REDEVEL- OPMENT PLAN FOR HOUSING AND REDEVELOPMENT PROJECT NO. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-1 Exhibit 1 Model Information Form to be Submitted to the School Boards , Scott County Board and the Minnesota Energy and Economic Development Authority. . . . . . . . . . ( 1 ) ( ii ) SECTION I . MODIFIED HOUSING AND REDEVELOPMENT PLAN FOR MINNESOTA RIVER VALLEY HOUSING AND REDEVELOPMENT PROJECT NO. 1 Subsection 1. 1 . Definitions. The terms defined below shall, for purposes of this Modified Housing and Redevelop- ment Plan, have the meanings herein specified, unless the context otherwise specifically requires: "Authority" means this housing and redevelopment author- ity created or authorized to be created by the Housing and Redevelopment Act defined below. "City" means the City of Shakopee, a municipal corpora- tion and political subdivision of the State of Minnesota, subject to the legal requirements of Chapter 412 of Minne- sota Statutes relating to statutory cities . "Commissioners" means the five commissioners consti- tuting the Authority who are appointed by the Mayor , with the approval of the City Council, as provided in §462 . 425, Subd. 6 of the Housing and Redevelopment Act. "Comprehensive Plan" means the City ' s comprehensive plan submitted to the Metropolitan Council pursuant to Minnesota Statutes, §473 .173, which contains the objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City through 1990 . "Council" means the City Council of the City, also re- ferred to as the governing body as defined in Minnesota Statutes, 5462. 421 , Subd. 5 . "County" means the County of Scott , Minnesota . "Housing and Redevelopment Act" means the statutes lo- cated at Minnesota Statutes , §§462 . 411 through 462 . 716, in- clusive, as amended. "Housing and Redevelopment Authority" means this housing and redevelopment authority created or authorized to be created by Minnesota Statutes , §§462 . 415 to 462 . 705 . "Housing and Redevelopment Project No. 1" means the Minnesota River Valley Housing and Redevelopment Project No. 1, a "project" as said term is defined in Minnesota Stat- utes, 9462 . 421, Subd. 13 . 1 - 1 "Modified Housing and Redevelopment Plan" means the plan as modified from time to time by the Authority and the City for the Housing and Redevelopment Project . "Project" means Housing and Redevelopment Project No. 1 , the public improvements and facilities to be constructed within Housing and Redevelopment Project No. 1 , as more fully described in Subsection 1.8. of the Modified Housing and Redevelopment Plan. "Project Area" means the real property located within the geographic boundaries of Housing and Redevelopment Proj- ect No. 1. "Redevelopment Plan" means the original plan approved on January 2, 1979 and modified from time to time by the Authority and the City for Housing and Redevelopment Project No. 1 as defined in 5462 . 421, Subd. 15, of the Housing and Redevelopment Act . "Special Assessment Bonds" means the special assessment bonds issued by the City to finance certain public improve- ments within Housing and Redevelopment Project No. 1 pursu- ant to the Modified Housing and Redevelopment Plan. The term "Special Assessment Bonds" shall also include any obli- gations issued to refund the Special Assessment Bonds . "State" means the State of Minnesota. "Tax Increment Bonds" means the general obligation tax increment bonds issued and to be issued by the City to fi- nance the public costs associated with Housing and Rede- velopment Project No. 1 as stated in the Modified Housing and Redevelopment Plan and in the Tax Increment Financing Plans for the Tax Increment Districts within Housing and Redevelopment Project No. 1. The term "Tax Increment Bonds" shall also include any obligations issued to refund the Tax Increment Bonds. "Tax Increment District" means any tax increment dis- trict presently established or to be established in the future in Housing and Redevelopment Project No. 1 . "Tax Increment Financing Act" means the statutory provi- sions of Minnesota Statutes, §§273 . 71 through 273 . 78, inclu- sive, as amended. "Tax Increment Financing Plan" means the respective Tax Increment Financing Plan for each Tax Increment District located within the Project Area. 1 - 2 (SUBSECTION 1. 1 WAS ADOPTED AS A MODIFICATION TO THE MODIFIED HOUSING AND REDEVELOPMENT PLAN ON FEBRAURY 28, 1984 . ) Subsection 1. 2 . Statement and Finding of Public Pur- pose. The Commissioners of the Authority in and for the City of Shakopee, Minnesota, have determined that there is a need for housing, development and redevelopment within the corporate limits of the City to provide employment opportu- nities, to improve the tax base and to improve the general economy of the State of Minnesota. The Commissioners have determined that there is a need for safe, decent, sanitary housing for all residents of the City, particularly for the elderly and handicapped. There is a need to provide an adequate housing supply for all residents at a cost they can afford, particularly to provide standard housing choices to persons and families of low and moderate income. Therefore, the Commissioners have deter- mined that certain parcels of property qualify as a "housing project" pursuant to Minnesota Statutes , Section 462 . 421, Subdivision 12 and as a "housing district" pursuant to Min- nesota Statutes, Section 273 . 73, Subdivision 11. The Commissioners have found that there are certain parcels of property within the City which are potentially more useful , productive and valuable than is being realized under existing conditions , and, therefore, are not contrib- uting to the tax base of the City to their full potential . The Commissioners have determined that certain parcels of property, substantially occupied by buildings , streets , utilities or other improvements, are deemed to be blighted because fifty percent of the improvements are structurally substandard to a degree requiring substantial renovation or clearance or that twenty percent of the improvements are structurally substandard and that another thirty percent of these improvements require renovation or clearance due to inadequate street layout, incompatible uses or land use relationships, excessive diversity or obsolete buildings not suitable for improvements or conversion. The Commissioners have determined that certain parcels of property are deemed to be blighted by virtue of conditions of unusual and diffi- cult physical characteristics of the ground, which condi- tions have prevented normal development of the land by pri- vate enterprise, resulting in a stagnant and unproductive condition of land potentially useful and valuable for con- tributing to the public health, safety and welfare. There- fore, the Commissioners have determined that certain parcels of property qualify as a "redevelopment project" pursuant to Minnesota Statutes, Section 462 . 421 , Subdivision 13 and as a "redevelopment district" pursuant to Minnesota Statutes, Section 273 . 73, Subdivision 10 . 1 - 3 The Commissioners have found that other parcels of prop- erty do not qualify as housing or redevelopment districts as defined above but do qualify as an "economic development district" pursuant to Minnesota Statutes, Section 273 . 73, Subd. 12 because the project or a portion of the project will discourage commerce, industry or manufacturing from moving operations to another state, will result in increased employment or will result in preservation and enhancement of the City ' s tax base. The Commissioners have further determined that the es- tablishment of Housing and Redevelopment Project No. 1 will provide the Authority and the City with the ability to achieve certain public purpose goals not otherwise obtain- able in the foreseeable future without the intervention of the Authority and the City in the normal development pro- cess . These goals include: the restoration and improvement of the tax base and the tax revenue generating capacity of the housing and redevelopment project , increased employment opportunities, the availability of safe healthful housing for all residents, the realization of comprehensive planning goals, the removal of blighted conditions, and the revitali- zation of the property within the housing and redevelopment project to create an attractive, comfortable, convenient and efficient area for industrial, commercial and related uses . (SUBSECTION 1 . 2 WAS ADOPTED AS A MODIFICATION TO THE MODIFIED HOUSING AND REDEVELOPMENT PLAN ON FEBRAURY 28, 1984) . Subsection 1 . 3 . Statutory Authority. THE HOUSING AND REDEVELOPMENT ACT. The Authority has determined that it is desirable and in the public interest to designate a specific area within the corporate limits of the City as Housing and Redevelopment Project No. 1 and to establish, modify and administer a housing and redevelopment plan ( the "Modified Housing and Redevelopment Plan" ) for Redevelopment Project No. 1. Financing of the housing portions of Housing and Rede- velopment Project No. 1 for the handicapped and the elderly and for single family and multi-family housing, including both low and moderate income housing, will be accomplished, in part, through issuance of Chapter 462C and Section 462 . 445, Subdivisions 10 , 11 and 12 bonds or other obliga- tions . Housing bonds or other housing obligations that were approved by official action of the City or Authority before April 25, 1979 , and exempted from the provisions of the Mortgage Subsidy Bond Tax Act of 1980 , P.L. 96-499 , pursuant to Section 1104(b) were issued without regard to the re- strictions of Section 462C. 07, Subd. 2 as provided by Section 462C. 10 . 1 - 4 The financing of certain public improvements to be made within Housing and Redevelopment Project No. 1 shall be accomplished, in part, through the use of funds which may be available to the Authority from any source, including funds furnished to the Authority by the City which may include the proceeds of bonds issued by the City, pursuant to Section 462. 581( 9) of the Housing and Redevelopment Act, to pay all or any part of the Authority of activities authorized by Section 462 . 445 , Subdivision 1, Clause 7 of the Housing and Redevelopment Act. THE MINNESOTA TAX INCREMENT FINANCING ACT. The Tax Increment Financing Act provides the procedure for the establishment of tax increment districts for the use of tax increment financing authorized by the Housing and Redevelop- ment Act described above for the funding of qualified public activities and improvements . The Tax Increment Financing Act authorizes the estab- lishment within any tax increment district within Housing and Redevelopment Project No. 1 one or more of the following types of tax increment districts : ( i) a redevelopment dis- trict; ( ii) a housing district; and/or ( iii ) an economic development district. The requirements for establishing each of the above are set forth in Section 273 .73 , Subdivi- sions 10, 11 and 12, respectively, of the Tax Increment Financing Act . The Tax Increment Financing Act also desig- nates, for each of the above types of tax increment dis- tricts, the limitations and requirements that apply to ac- tivities and public improvements which can be financed for each type of tax increment district . The modification of each tax increment financing plan shall be governed by the requirements of Section 273 . 74, Subd. 4, of the Tax Increment Financing Act, and the City Council, by this Modified Housing and Redevelopment Plan, hereby will establish the last subsection of each tax incre- ment financing plan for each tax increment district as the subsection in which any modifications to the tax increment financing plan are stated. Appendix B of this Redevelopment Plan is hereby designated as the place where copies of each resolution passed by the Council modifying in any manner the Modified Housing and Redevelopment Plan or any tax increment financing plan shall be located and shall become a part of this Modified Housing and Redevelopment Plan. Subsection 1 . 4. Statement of Objectives . The Authority and the City seek to achieve the following specific objec- tives as to appropriate land uses and to serve as an outline of general standards of development and redevelopment : 1 - 5 (AS ORIGINALLY ADOPTED ON JANUARY 2, 1979 ) . The Housing and Redevelopment Authority and the City of Shakopee through this Redevelopment Plan, seek to achieve the following objectives : a. To provide logical and organized land use for the area consistent with the City comprehensive plan and zoning ordinance. b. To eliminate blighting influences which to date have impeded potential development in the area. C. To provide safe and adequate drainage in this area. d. To provide adequate utilities and other public improvements and facilities to enhance the area for both new and existing development . e. To stimulate commercial and industrial development in the Project area and in the City. f . To provide increased employment and to supplement the financial and property tax base of the City. g. To provide maximum opportunity, consis- tent with the sound needs of the City as a whole, for redevelopment by private enterprise. (OBJECTIVES WERE FURTHER EXPANDED ON FEBRUARY 28, 1984) h. To encourage planning and development of a desirable and unique character within Housing and Redevelopment Project No. 1 through quality land use alternatives and design quality in new and remodeled buildings and residences , in a manner consistent with the comprehensive plan of the City and with a minimum adverse impact on the environ- ment. i . To acquire certain property within Hous- ing and Redevelopment Project No. 1 which is not now in productive use or in its highest and best use, to make soil corrections on said property and to construct public improvements on said property, thereby promoting and securing the development of other land in the City. 1 - 6 j . To subdivide and sell or lease the im- proved property to private developers, including new, small and/or local businesses, which will pro- vide increased employment opportunities in the City and the surrounding area and increase the tax base of those taxing jurisdictions within which Housing and Redevelopment Project No. 1 is located, in order to better enable such entities to pay for governmental services and programs required to be provided by them. k. To provide safe, decent, sanitary housing for all residents of the City at a cost they can afford. 1. To provide additional new housing units so as to accomodate the needs of expanding commer- cial and industrial employment base including high- quality housing choices to persons and families of low and moderate income. M. To provide sound residential neighbor- hoods that are ascetically developed, well located and adequately serviced with municipal utilities and amenities . n. To provide the impetus for residential development by private enterprise consistent with the goals of the Authority and the City including the policies, present and future housing needs, and housing allocation plans and implementation pro- grams of the Housing Element of the Metropolitan Development Guide of the Metropolitan Council of the Twin Cities Area. Subsection 1 . 5 . Boundaries of Redevelopment Project No. 1. Boundaries of Redevelopment Plan for the Valley Industrial Park Redevelopment Project No. 1 as established on January 2, 1979 (SEE EXHIBIT I-A FOR BOUNDARY MAP. ) The property which comprised the original Valley Industrial Park Redevelopment Project No. 1 is legally described as follows : Lot 1, Block 1, Valley Park, 3rd Addi- tion, City of Shakopee, Minnesota; and Boundaries of Redevelopment Project No. 1 were modified on July 17 , 1979 to include the follow- ing: (SEE EXHIBIT I-B FOR BOUNDARY MAP. ) 1 - 7 The Right of way of County Road 83 South- erly of Trunk Highway 101 and northerly of County Raod 16 ; Lot 1, Block 1, Valley Third Addition; and Lot 13, Block One, Valley Park Fifth Addition; and the West 1/2 of Section 9, Township 115, Range 22, except that part of the West 1/2 of Sec- tion 9, Township 115, Range 22, Southerly of the centerline of County Road 16; all lying within the City of Shakopee, Scott County, Minnesota. Increased Geographic Area of Housing and Redevelop- ment Project No. 1 as Modified on February 28, 1984. ( SEE EXHIBIT I-C FOR BOUNDARY MAP. ) (The boundaries of Redevelopment Project No. 1 as modified on July 17, 1979 are included in the ex- panded project area) Section 31, 32, 33 , 34, 35 and 36, Town- ship 116, Range 22 south of the Minnesota River, Scott County, Minnesota. That part of Section 1, 2, 3 , 4, 5 , 10 and 11, Township 115, Range 22 , Scott County, Minnesota, lying northerly of the southerly right of way of the Trunk High- way 101 Bypass as recorded in Document Number 179496 in the office of the Scott County Recorder . That part of Section 12, Township 115, Range 22, Scott County, Minnesota lying northerly of the following described line: Beginning at the Southwest Corner of the Northwest Corner of said Section 12, thence northerly to the southerly right of way of the Trunk Highway 101 Bypass as recorded in Document Number 179496 in the office of the Scott County Recorder, to the true point of beginning, thence east- erly along said southerly right of way to the intersection with the southerly right of way of Trunk Highway 101, thence east- erly along said Trunk Highway 101 right of way to the East line of said Section 12 and there terminating. 1 - 8 That part of the East Half of Section 9, Township 115, Range 22, Scott County, Minnesota, lying northerly of the south- erly right of way of the Trunk Highway 101 Bypass as recorded in Document Number 179496 in the office of the Scott County Recorder . That part of the West Half of Section 9 , Township 115 , Range 22 , Scott County, Minnesota, lying northerly of the south- erly right of way of County Road No. 16 . That part of the West Half of Section 9 , Township 115, Range 22 , Scott County, Minnesota, lying northerly of the south- erly right of way of the Trunk Highway 101 Bypass as recorded in Document Number 179496 in the office of the Scott County Recorder . The South Half of the North Half of Sec- tion 7 , Township 115, Range 22 , Scott County, Minnesota. That part of the South Half of Section 7, Township 115 , Range 22, Scott County, Minnesota, lying northerly of the south- erly right of way of the Trunk Highway 101 Bypass as recorded in Document Number 179496 in the office of the Scott County Recorder . That part of Section 8, Township 115 , Range 22, Scott County, Minnesota, lying northerly of the southerly right of way of the Trunk Highway 101 Bypass as re- corded in Document Number 179496 in the office of the Scott County Recorder ex- cepting therefrom: The Northwest Quarter of the North- west Quarter of Section 8 lying southerly of the southerly right of way of County Road No. 16 . Section 6, Township 115 , Range 22, Scott County, Minnesota, and Section 1 and Section 2, Township 115 , Range 23, Scott _ County, Minnesota, excepting therefrom: 1 - 9 Hesse ' s First Addition to Shakopee, Scott County, Minnesota; Hesse' s Second Addition to Shakopee, Scott County, Minnesota; Scenic Heights 4th Add ' n, Scott County, Minnesota; and that part of Section 6 , Township 115, Range 22 , Scott County, Minne- sota, and that part of Section 1 and Section 2, Township 115 , Range 23 , Scott County, Minnesota, lying southerly and westerly of the fol- lowing described line: Beginning at the Southeast Corner of Section 6, Township 115 , Range 22 , Scott County, Minnesota, thence westerly along the south line of said Section 6 to the westerly right of way of County Road No. 17 to the true point of beginning, thence northerly along said County Road No. 17 right of way to the northeast corner of Lot 2, Block 2 , Furrie ' s 2nd Addition, Scott County, Minne- sota, thence westerly along the southerly right of way of Third Ave- nue to the northwest corner of Lot - 1 , Block 2 of said Furrie ' s 2nd Addition, which point bears North 10 Degrees 24 Minutes 14 Seconds West from the Southwest corner of said Lot 1, a distance of 148. 69 feet, thence westerly to the northeast corner of Lot 6, Block 28, East Shakopee, Scott County, Minnesota, thence westerly along the south right of way of Third Street to the northwest corner of Lot 10 , Block 4, of said East Shakopee, thence west- erly to the northeast corner of Lot 6 , Block 166, Shakopee City, Scott County, Minnesota thence westerly along the southerly right of way of Third Street to the northwest corner of Lot 10 , Block 49 , of said Shakopee City, thence southerly along the easterly right of way of Holmes Street to the northwest cor- ner of Lot 10 , Block 56 of said Shakopee City, thence westerly along the southerly right of way of Fourth Street to the northwest corner of 1 - 10 Court House Square thence southerly along the easterly right of way of Fuller Street to the northwest cor- ner of Lot 10 , Block 73 of said Shakopee City, thence westerly along the southerly right of way of Fifth Street to the northeast corner of Lot 6, Block 71 , Shakopee City, thence northerly along the westerly right of way of Atwood Street to the northeast corner of Lot 6 , Block 46 of said Shakopee City, thence west- erly along the southerly right of way of Third Street to the northwest corner of Lot 10 , Block 174 of said Shakopee City, thence westerly to the northeast corner of Lot 2 , Block One Wiggin ' s First Addition, Scott County, Minnesota, thence westerly along the southerly right of way of Third Avenue to the northwest corner of Lot 1, of said Block One, which point is the northeast corner of Lot 11, Block 4 , Koeper ' s Addition, Scott County, Minnesota, thence westerly along the southerly right of way of Third Street to the north- west corner of Lot 12, Block 9 , of said Koeper ' s Addition, thence west- erly to the northeast corner of Out Lot "A" , Husman Addition, Scott County, Minnesota, thence westerly along the southerly right of way of 3rd Street to the northwest corner of Out Lot "D" thence southwesterly along the southeast right of way of the C. St . P. M. & 0. Railroad to the west line of Government Lot 7 , Section 2 , Township 115 , Range 23, Scott County, Minnesota and there terminating. Subsection 1 . 6 . Parcels to be Acquired in Whole or in Part Within Housing and Redevelopment Project No. 1. The following parcels of property will be acquired by the Authority to be included within Housing and Redevelopment Project No. 1 : (AS ORIGINALLY ADOPTED ON JANUARY 2 , 1979 ) It is anticipated that it will be necessary to acquire the property in the Redevelopment Project Area 1 - 11 immediately upon approval of these plans, and to enter into contracts to provide moneys for this purpose using the land as security for the repayment of such moneys . All new development on land acquired by the Housing and Redevelopment Authority in the Redevelopment Project shall be industrial and/or commercial . It is estimated that the cost of acquiring the property described below, through negotiation or condemnation, will be approxi- mately $1, 100 , 000 . Lot 1, Block 1, Valley Park, 3rd Addition, City of Shakopee, Minnesota; and (AS MODIFIED ON FEBRUARY 28, 1984 ) The Northeast Quarter of the Southeast Quarter of Section 5, Township 115 , Range 22 , Scott County, Minnesota excepting therefrom: The West 150 . 00 feet of the north 333 . 00 feet of the Northeast Quarter of the Southeast Quarter of Section 5, Township 115, Range 22 . The South Half of the Southeast Quarter of Section 5, Township 115, Range 22, Scott County, Minnesota. The Southwest Quarter of the Southwest Quarter of Section 4, Township 115, Range 22, Scott County, Minnesota. That part of the East Half of the Northeast Quarter of Section 8, Township 115, Range 22, Scott County, Minnesota, lying northerly of the centerline of County Road No. 16 . The Northwest Quarter of Section 9 , Township 115 , Range 22 , Scott County, Minnesota excepting there- from: The south 400 feet of the west 100 feet of the South Half of the Northwest Quarter . The East Half of the Southwest Quarter of Section 9 , Township 115 , Range 22, Scott County, Minnesota, lying northerly of the centerline of County Road No. 16 . 1 - 12 Subsection 1.7 . Estimated Public Improvement Costs and Supportive Data. (AS ORIGINALLY ADOPTED ON JANUARY 2 , 1979 ) The estimated costs of the public improvements to be made within the original Valley Industrial Park Redevelop- ment Project No. 1 and financed by tax increments derived from the tax increment district within Valley Industrial Park Redevelopment Project No. 1 are as follows : Estimated costs of Housing and Redevelopment Authority $ 3,650, 000* * Includes capitalized interest Estimated costs of Redevelopment Project to be financed by the private developer 15, 000 , 00 Estimated annual debt service 630 , 000 Estimated annual tax increment 700 , 000 Estimated Tax Increment Revenue Bond Issue It is estimated that the City will have to issue tax increment revenue bonds to finance the public rede- velopment cost of the Project of $1 ,120 ,000 and the costs to be incurred by the City in aid of the Redevel- opment Project of $1, 205,000 . It is estimated that the bond issue will be in the amount of $3,650 , 000 in order to provide moneys needed to pay interest on the bonds until tax increments to be derived from the Redevelop- ment Project are available to pay debt service. (THE FOLLOWING LANGUAGE WAS ADDED ON FEBRUARY 28, 1984 ) It is estimated that additional on-site and off-site public improvements , including administrative costs , capitalized interest and bond issuance costs to be paid through the Authority will not exceed eleven million dollars. Specific costs relating directly to each type of public improvement is given in the cost subsection of the tax increment financing plan for each tax increment district. Subsection 1 .8. Public Improvements and Facilites Within Housing and Redevelopment Project No. 1 . (AS ORIGINALLY ADOPTED ON JANUARY 2 , 1979 ) The cost of the Redevelopment Project to be paid by the City, and of public improvements to be constructed 1 - 13 by the City in aid of the Project, and the anticipated proceeds to be received by the City from the disposition of the property within the Redevelopment Project, are estimated to be as follows: Public Redevelopment Cost Land Acquisition $1 , 100 , 000 Site Preparation 720 ,000 Site Improvements 400 , 000 2 , 220 , 000 Less: Anticipated Sale Proceeds 1, 100 , 000 $1, 120 , 000 Costs Incurred in Aid of Project Utilities - water , sewer , etc. $ 700 , 000 Water Storage Tank 1, 100 , 000 Municipal Well 250 , 000 Administrative and Planning 25 , 000 Fiscal and Legal 30 , 000 $2 , 105 , 000 (AS MODIFIED ON FEBRUARY 28, 1984) Included in the type of on-site and off-site public improvements estimated as to cost in subsection 1 .7 above may be the following: land acquisition, earthwork and grad- ing, site lighting and fencing, open space amenities , side- walk, curb and gutter , watermains, sanitary and storm sewers, roads and parking, other eligible site preparation work, land sale and Environmental Impact Statement . The above is not intended to convey the order in which the above improvements are to be completed or to convey which improve- ments will ultimately be financed by the Authority or the developer . Subsection 1.9 . Environmental Controls . The proposed development in Housing and Redevelopment Project No. 1 does not present significant environmental concerns . All munici- pal actions , public improvements and private development shall be carried out in a manner consistent with existing environmental standards . Subsection 1. 10 . Proposed Reuse of Property. The Mod- ified Housing and Redevelopment Plan does not contemplate the acquisition of private property until such time as a private developer presents an economically feasible program for the reuse of that property. Proposals for the reuse of private property must be within the framework of the above cited goals and objectives of the Authority and the City. Acquisition and sale of certain private property by the Authority shall be subject to a binding contract with the purchaser incorporating appropriate restrictions regarding the reuse and redevelopment of the property. Before approv- 1 - 14 ing any such contract or sale, the Authority shall be satis- fied that adequate funds will be available to repay the public costs associated with the proposed acquisition. Subsection 1 . 11 . Administration and Maintenance of Housing and Redevelopment Project No. 1 . Maintenance and operation of the public improvements in Housing and Redevel- opment Project No. 1 will be the responsibility of the Director of the Authority in and for the City ( the "Admin- istrator" ) . The Administrator will administer Housing and Redevelopment Project No. 1 pursuant to the provisions of the Housing and Redevelopment Act; provided, however, that such powers may only be exercised at the direction of the Authority. These administrative responsibilities are spelled out in Appendix A immediately following this Mod- ified Housing and Redevelopment Plan. No action taken by the Administrator pursuant to the above-mentioned powers shall be effective without authorization by the Authority. Subsection 1. 12 . Rehabilitation. Owners of properties within Housing and Redevelopment Project No. 1 will be en- couraged to rehabilitate their properties to conform with the applicable state and local codes and ordinances, as well as any design standards. Owners of properties who purchase property within Housing and Redevelopment Project No. 1 from the Authority may be required to rehabilitate their proper- ties as a condition of the sale of the land. The Authority will provide such rehabilitation assistance as may be avail- able from federal, state or local sources . Subsection 1. 13 . Relocation. The Authority accepts its responsibility for providing assistance for relocation ac- tivities pursuant to Section 462. 531 of the Housing and Redevelopment Act. Subsection 1.14. Redevelopment Obligations . (AS ORIGINALLY ADOPTED ON JANUARY 2 , 1979) . The general requirements to be imposed upon the redevel- oper are: a. To redevelop the land within the Project in accordance with this Redevelopment Plan and the Redevel- opment Agreement. b. To submit all construction plans to the Hous- ing and Redevelopment Authority for review and approval . C. To commence and complete the construction of improvements within such reasonable period of time as determined by the Housing and Redevelopment Authority. 1 - 15 d. To provide guarantees for the performance of its obligations under the Redevelopment Agreement . e. Not to discriminate on the basis of race, color, creed, sex or national origin in the construction of the facility or in the employment of personnel . f. To devote the land only to the uses permitted by this Redevelopment Plan for a period of twenty ( 20 ) years from the date of the conveyance by the Housing and Redevelopment Authority. g. To pay promptly when due all real estate taxes and special assessments . h. To take no action which would cause the prop- erty within the Project to become exempt from real es- tate taxation for so long as tax increment revenue bonds are outstanding. i . To comply with all applicable provisions of the Municipal Housing and Redevelopment Act , Minnesota Statutes, Section 462 . 411, et seq. (AS OF FEBRUARY 28, 1984, Subsection 1. 14 (F) was deleted and the following language substituted therefor ) ( f) The Authority reserves the right to devote any or all land described in the Housing and Redevelopment Plan to the uses permitted by this Plan and by statute for the period of years appropriate to the parcel ( s ) and as authorized by statute. 1 - 16 The following tax increment districts will be incorpo- rated into Minnesota River Valley Housing and Redevelopment Project No. 1 and will be identified as follows : Tax Increment District No. 1 : K-Mart Tax Increment District Adopted: January 2 , 1979 Modified: July 17 , 1979 Tax Increment District No. 2 : Elderly Highrise Redevelopment Project Adopted: August 21 , 1979 Modified: December 22, 1981 Tax Increment District No. 3 : Downtown Tax Increment Financing District No. lA Adopted: June 29 , 1982 Tax Increment District No. 4 : Proposed only -- for Shakopee Racetrack project. 1 - 17 I-A tn AVE t V i 4CLFr o d < 2 V,L�EV 1 ---a z_� MOUS r ------ T - c u0i At,4L ecLtev HO 12 0 -- t / $OUT# 7 � I a a I i I I i s r � E -- a 0- OUTLOT 4 \`<f I I K MART TAX 1NCRLi�,�IC DISTRICT T " s .r \OqF I I 1 0 ( ORIGINAL) I I 3 e QUTLOT G I GUTLOT OUTLOT G EXHIBIT I-C fh L 1 Lli r d O 0 � - LL W O I-C-1 APPENDIX A ADMINISTRATIVE GUIDE FOR THE ADMINISTRATION OF THE MODIFIED HOUSING AND REDEVELOPMENT PLAN FOR HOUSING AND REDEVELOPMENT PROJECT NO. 1 The Authority has, pursuant to Section I , Subsection 1.11 of the Modified Housing and Redevelopment Plan, desig- nated the Director of the Authority in and for the City to serve as Administrator of the Modified Housing and Redevel- opment Plan for Housing and Redevelopment Project No. 1 as authorized by §462. 445, Subd. 1( 2 ) of the Housing and Rede- velopment Act to supervise the maintenance and operation of public improvements and activities financed by the Tax In- crement Districts within Housing and Redevelopment Project No. 1 . ADMINISTRATIVE POWERS The Administrator will administer the Modified Housing and Redevelopment Plan pursuant to the provisions of Sec- tions 462 . 411 through 462 . 716 , inclusive, as amended, of the Housing and Redevelopment Act. Subject to the authorization and approval of the Board of Commissioners, the Administra- tor shall administer , pursuant to §462 . 445, subd. 1, ( 1) through (9 ) , the following powers of the Authority: ( 1) To sue and be sued; to have a seal, which shall be judicially noticed, and to alter the same at pleasure; to have perpetual succession; and to make, and from time to time amend and repeal, rules and regula- tions not inconsistent with these sections; ( 2) To employ an executive director, technical experts , and such officers, agents and employees , perma- nent and temporary, as it may require, and determine their qualifications, duties, and compensation; for such legal services as it may require, to call upon the chief law officer of the municipality or to employ its own counsel and legal staff; so far as practicable, to use the services of local public bodies, in its area of operation, such local public bodies, if requested, to make such services available; ( 3) To delegate to one or more of its agents or employees such powers or duties as it may deem proper ; ( 4) Within its area of operation to undertake, prepare, carry out, and operate projects and to provide A - 1 for the construction, reconstruction, improvement, ex- tension, alteration, or repair of any project or part thereof; ( 5) Subject to the provisions of section 462 . 511, to give, sell , transfer , convey or otherwise dispose of real or personal property or any interest therein and to execute such leases, deeds, conveyances, negotiable instruments, purchase agreements, and other contracts or instruments, and take such action, as may be necessary or convenient to carry out the purposes of these sec- tions; 1 (6) Within its area of operation to acquire real or personal property or any interest therein by gifts, grant, purchase, exchange, lease, transfer , bequest , devise, or otherwise, and by the exercise of the power of eminent domain in the manner or otherwise, and by the exercise of the power of eminent domain, in the manner provided by Minnesota Statutes 1945 , Chapter 117 , and any amendments thereof or supplements thereto, to ac- quire real property which it may deem necessary for its purposes under these sections, after the adoption by it of a resolution declaring that the acquisition of the real property is necessary to eliminate one or more of the conditions found to exist in the resolution adopted pursuant to section 462 .425 or found to exist by section 462.425, subdivision 5 , or is necessary to carry out a redevelopment project as defined in section 462 . 321, subdivision 13; (7) Within its area of operation, and without the adoption of an urban renewal plan, to acquire, by all means as set forth in clause ( 6 ) of this subdivision, including by the exercise of the power of eminent do- main, in the manner provided by chapter 117, and without the adoption of a resolution provided for in subdivision 1, clause (6) , real property, and to demolish, remove, rehabilitate or reconstruct the buildings and improve- ments or construct new buildings and improvements thereon, or to so provide through other means , as set forth in Laws 1974, Chapter 228, or to grade, fill and construct foundations or otherwise prepare the site for improvements, and to dispose of said property pursuant to section 462 . 525 , provided that the provisions of section 462 . 525 requiring conformance to an urban re- newal plan shall not apply, and to finance such activ- ities by means of the redevelopment project fund or by means of tax increments or tax increment bonds or by the methods of financing provided for in section 462 . 525 or by means of contributions from the municipality provided for in section 462 . 581, clause (9 ) , or by any combina- A - 2 tion of such means; provided that , real property with buildings or improvements thereon shall only be acquired when the buildings or improvements are substandard; and provided further that the exercise of the power of emi- nent domain under this clause shall be limited to real property which contains buildings and improvements which are vacated and substandard. For the purpose of this subparagraph, substandard buildings or improvements mean buildings or improvements that are dilapidated or ob- solescent, faultily designed, lack adequate ventilation, light, or sanitary facilities, or any combination of these or other factors that are detrimental to the safety or health of the community; (8) Within its area of operation to determine the level of income constituting low or moderate family income. Such income level shall be that level below which there is not available within the area of opera- tion a substantial supply of decent , safe and sanitary housing provided by private enterprise without subsidy at prices or rents within the financial means of persons and families of such incomes . The authority may estab- lish various income levels for various family sizes . In making its determination the authority may consider income levels which may be established by the federal housing administration or a similar or successor federal agency for the purpose of federal loan guarantees or subsidies for persons of low or moderate income. The authority may use such determination as a basis for the maximum amount of income for admissions to housing de- velopment projects owned or operated by it; (9 ) To provide in federally assisted projects such relocation payments and assistance as may be necessary to comply with the requirements of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 , and any amendments or supplements thereto. PROCEDURAL REQUIREMENTS 1. All actions taken by the Administrator pursuant to the above-mentioned powers shall be carried out within the statutory requirements for a Housing and Redevelopment Authority as given in Minnesota Statutes, Sections 462 . 411 through 462 .716 . 2 . An amount not exceeding ten percent ( 10%) of the total tax increment expenditures authorized by the tax in- crement financing plan( s) or the total tax increment expen- ditures for the project , whichever is less , can be used to pay any administrative expenses for a project . Minnesota Statutes, §273 . 75, Subd. 3 . A - 3 3 . Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants . Administra- tive expenses do not include amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engi- neering services, directly connected with the physical de- velopment of the real property in the project, relocation benefits paid to or services provided for persons residing or businesses located in the project, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 273.77 . Minnesota Statutes, §273.73, Subd. 13 . 4 . Following Council approval of a tax increment financing plan for a tax increment district, the Administra- tor shall request the County Auditor to certify the original assessed value of the tax increment district . Minnesota Statutes §273 . 74, Subd. 3 . 5 . Upon adoption by the Council of the tax increment financing plan for a tax increment district, the Administra- tor shall file a copy of the tax increment financing plan with the Minnesota Energy and Economic Development Author- ity. Minnesota Statutes, §273 .74, Subd. 2 . The plans should be addressed as follows : Minnesota Energy and Economic Development Authority Division of Community Development 9th Floor, American Center Building 150 East Kellogg Blvd. St. Paul, Minnesota 55101 Attention: Michael Auger 6 . The Administrator shall seek modification of a tax increment financing plan for a tax increment district by the process required for approval of the original tax increment financing plan if the Authority seeks to do any of the fol- lowing: (a) reduce or enlarge the geographic area of the tax increment district ( the geographic area can be re- duced but not enlarged after five ( 5) years following certification to the original assessed value of the tax increment district) ; (b) increase the amount of bonded indebtedness to be incurred; A - 4 (c) increase the portion of captured assessed value to be retained by the City; (d) increase the total estimated tax increment expenditures; or (e) designate additional property to be acquired by the Authority. Minnesota Statutes §273. 74, Subd. 4. 7 . on or before July 1 of each year, the Administrator shall submit to the Scott County Board, all affected school boards, and to the Minnesota Energy and Economic Development Authority a report of the status of each tax increment dis- trict in Housing and Redevelopment Project No. 1 . The in- formation to be included in the report is given in the model form attached hereto as EXHIBIT 1 . 8 . An annual statement showing the tax increment re- ceived and expended in that year , the original assessed value, the captured assessed value, the amount of outstand- ing bonded indebtedness and any additional information the Authority deems necessary shall be published in the official newspapers of the City. Minnesota Statutes §273. 74 , Subd. 5 . 9 . All revenues derived from each tax increment dis- trict shall be used in accordance with the tax increment financing plan. The revenues shall be used for the follow- ing purposes : 1. to pay the principal of and interest on bonds issued to finance a project; 2 . to finance or otherwise pay the capital and administration costs of Housing and Redevelopment Proj- ect No. 1 pursuant to the Housing and Redevelopment Act; 3 . to accumulate and maintain a reserve in a special development account for the payment of the prin- cipal of and interest on bonds issued to finance a pro- ject; 4. to pay for project costs as identified; and 5 . to finance or otherwise pay for other purposes as provided in Section 273 . 75, Subd. 4, of the Tax In- crement Financing Act. These revenues shall not be used to circumvent any levy limits . Minnesota Statutes, §273 .75 , Subd. 4 . A - 5 10 . In the year in which the tax increments exceed the amount necessary to pay the costs authorized by the tax increment financing plans, including the amount necessary to cancel any tax levy as provided . in Minnesota Statutes , Sec- tion 475 .61, Subd. 3 , the Authority shall use the excess amount to: 1. prepay any outstanding bonds; 2 . discharge the pledge of tax increment there- for; 3 . pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess amount to the County Auditor for distribution as provided in Section 273 . 75 , Subd. 2 , of the Tax Increment Act . Minnesota Statutes , §273 . 75 , Subd. 2 . 11 . Pursuant to Section 273 .75 , Subd. 1, of the Tax Increment Financing Act : 1. No tax increments shall be paid to the City for the tax increment districts after three ( 3) years from the date of certification of the original assessed value of the taxable property in the tax increment dis- tricts by the County Auditor unless within the three( 3)-year period: (a) bonds have been issued pursu- ant to Section 273.77 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Chapter 474 prior to August 1, 1979, or (b) the Author- ity has acquired property within the tax increment dis- tricts or (c) the City has constructed or caused to be constructed public improvements within the tax increment districts . 2 . The tax increments pledged to the payment of bonds and interest thereon may be discharged and the tax increment districts may be terminated if sufficient funds have been irrevocably deposited in the debt ser- vice fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. 3 . No tax increments shall in any event be paid to the City from the tax increment districts after eight ( 8) years from the date of the receipt by the City of the first tax increment or ten ( 10 ) years from approval of each tax increment financing plan, whichever is less. Modification of each tax increment financing plan A - 6 pursuant to Section 273. 74 , Subd. 4, of the Tax Incre- ment Financing Act shall not extend the durational limits of that provision. (Once the Authority deter- mines the term of the tax increment district , that term shall govern. ) 4 . If, after five ( 5 ) years from the date of certification of the original assessed value of the tax increment districts pursuant to Section 273 . 76 of the Tax Increment Financing Act, no demolition, rehabil- itation or renovation of property or other site prepara- tion, including improvement of a street adjacent to a parcel but not installation of an underground utility service, has been commenced on a parcel located within the tax increment districts by the City or by the owner of the parcel in accordance with the tax increment financing plans , no additional tax increments may be taken from that parcel, and the original assessed value of that parcel shall be excluded from the original assessed value of the Tax Increment Districts . If the City or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel, including improvement of a street adjacent to that parcel, in accordance with the tax increment financing plans, the authority shall cer- tify to the County Auditor that the activity has com- menced, and the County Auditor shall certify the as- sessed value thereof--as most recently certified by the Commissioner of Revenue and add it to the original as- sessed value of the tax increment districts . For pur- poses of this subdivision, "parcel" means a tract or plat of land established as a single unit for purposes of assessment . A list will be maintained by the Building Inspector of the City to document all building permits issued within the district for private redevelopment , including alterations, additions, new construction and demolition. 12 . The tax increments received with respect to payment of principal and interest for bonds issued for improvements made within the tax increment districts shall be submitted by the Authority to the City and segregated by the Authority in a special account or accounts on its official books and records or as otherwise established by resolution of the City to be held by a trustee or trustees for the benefit of holders of the bonds. Minnesota Statutes, §273 .76, Subd. 4 . A - 7 EXHIBIT 1 TO APPENDIX A MODEL INFORMATION FORM TO BE SUBMITTED TO THE SCHOOL BOARDS, SCOTT COUNTY BOARD, AND THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING (TIF) ANNUAL DISCLOSURE REPORT CALENDAR YEAR ENDING DECEMBER 31, 19 Authority: The City of Shakopee City of Shakopee Housing and Redevelopment Project No. 1 Tax Increment District Identification: A. Term of Tax Increment District Starting Date (date TIF Plan was adopted) Ending Date B. Captured Taxable Valuation Current Assessed Value. . . . . . . . . . . . . . . .$ Current Base Value (original assessed value) . . . . . . . . . . . . . . . . . . . . . $ Difference: Captured Assessed Value (CAV) . . . . . . . . .$ Percentage of CAV Retained by Authority. . . . . . . . . . . . . . . . . . .$ Percentage of CAV to be Shared with Other Taxing Jurisdictions. . . . . . . . . . . . . . . . . . $ C. Amount and Source of Revenue in Tax Increment Financing Account Tax Increment Financing Tax Increments Received. . . . . . . . . . $ Other Revenue Sources Land Sale Proceeds . . . . . . . . . . . . . . . $ Rental Income. . . . . . . . . . . . . . . . . . . . $ A - 1 Investment Earnings. . . . . . . . . . . . $ Transfer from Other Funds . . . . . . . . $ Loan Income and/or Repayment . . . . . $ Other Income. . . . . . . . . . . . . . . . . . . . . $ Subtotal . . . . . . . . . . . . . . . . $ Tax Increment and Other Revenue Source Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ D. Amount and Purpose of Expenditures from Tax Increment Financing Account Tax Increment Bonding Expenditures Bond Capitalized Interest Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Debt Service Payments . . . . . . . . . . . . . . . . . $ Principal . . . . . . . . . . . . . . . . . . . . . . . . $ Interest . . . . . . . . . . . . . . . . . . . . . . . . . $ Other Project Expenditures. . . . . . . . . . . . $ Capital Costs . . . . . . . . . . . . . . . . . . . . . . . .$ Contract Expenditures . . . . . . . . . . . . . . . . .$ Administration. . . . . . . . . . . . . . . . . . . . . . . .$ Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ E. Difference Between Revenues and Expenditures for Current Year . . . . . . . . . . . . . . $ F. Tax Increment Account Balance Account Balance January 1, 19 . . . . . . . $ Account Balance December 31, 19 . . . . $ G. Bond Issues Outstanding for Tax Increment District Name of Bond Issue ( i .e. , Tax Increment Bonds of 198_) Amount of Pledge of Tax Increment Revenues for Payment of Bond. . . . . . . . $ No. of Years Remaining on Term. . . . . . . . $ Amount of Outstanding Bonded Indebtedness. . . . . . . . . . . . . . . . . . . . . . . .$ Note: Pursuant to Minnesota Statutes §273 .74, subd. 5 , the governing body of a municipality shall send a status A - 2 report on each tax increment district to the county board, the school board and the Commissioner of the Minnesota Energy and Economic Development Authority on or before July 1 of each year . *Repeat for each Bond Issue A - 3 Councilmember introduced the following resolution and moved its adoption: CITY OF SHAKOPEE COUNTY OF SCOTT STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION APPROVING THE MODIFICATION AND RE- DESIGNATION BY THE HOUSING AND REDEVELOPMENT AU- THORITY IN AND FOR THE CITY OF SHAKOPEE OF VALLEY INDUSTRIAL PARK REDEVELOPMENT PROJECT NO. 1 TO MINNESOTA RIVER VALLEY HOUSING AND REDEVELOPMENT PROJECT NO. 1 AND THE REDEVELOPMENT PLAN RELATING THERETO. BE IT RESOLVED by the City Council ( the "Council" ) of the City of Shakopee, Minnesota ( the "City" ) , as follows : Section 1 . Recitals . 1 . 01 . It has been proposed and adopted by the Housing and Redevelopment Authority in and for the City ( the "Authority" ) that the Authority modify by enlargement, by increased project costs and by redesignation its Valley Industrial Park Redevelopment Project No. 1 , which is hereby redesignated as Minnesota River Valley Housing and Redevel- opment Project No. 1 ( "Redevelopment Project No. 1" ) , pursu- ant to and in accordance with Minnesota Statutes, Sections 462 . 411 to 462 .716, inclusive, as amended. 1 . 02 . The Authority has caused to be prepared, and this Council has investigated the facts with respect to, a pro- posed modification of the existing Redevelopment Plan for Valley Industrial Park Redevelopment Project No. 11 captioned Modified Housing and Redevelopment Plan for Minne- sota River Valley Housing and Redevelopment Project No. 1 ( the "Modified Redevelopment Plan" ) , defining more precisely the property and project costs to be added to Redevelopment Project No. 1 and describing the action to be undertaken by the Authority and the City to modify Redevelopment Project No. 1. 1 . 03 . The Authority and the City have performed all actions required by law to be performed prior to the modifi- cation of Redevelopment Project No. 1 and the adoption of the Modified Redevelopment Plan relating thereto, including, but not limited to, a review of the proposed Modified Rede- velopment Plan for Redevelopment Project No. 1 by the City Planning Commission and the holding of a public hearing upon published and mailed notice as required by law. (CC-1) S Section 2 . Findings for the Modification of Redevelop- ment Project No. 1 . 2 . 01 . The Council hereby finds that the modification by enlargement of and increased project costs within Redevelop- ment Project No. 1 is intended and, in the judgment of this Council, its effect will be, to provide an impetus for com- mercial and industrial development in the City, to increase employment , to provide inducement for the provision of greater housing opportunities in the City for the elderly and persons of low and moderate income, and otherwise to promote certain public purposes and accomplish certain objectives as specified in the Modified Redevelopment Plan. Section 3 . Approval of the Modified Redevelopment Plan. 3 . 01 . The Modified Redevelopment Plan and Redevelopment Project No. 1 , as amended, is hereby approved and adopted and shall be placed on file in the office of the City Clerk . The Modified Redevelopment Plan shall be entitled "Modified Housing and Redevelopment Plan for Minnesota River Valley Housing and Redevelopment Project No. 1 ( formerly Valley Industrial Park Redevelopment Project No. 1) . The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , 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 and attested to by the City Clerk . Dated: February 28, 1984 . Mayor Attest : City Clerk 2 - XHIBIT I—B I ' - , 4th AVE T. " E ` Z 2 y,LLf ' t? 6 Z � � IO Sp,•/1•H f I � I a I I� l - I " J \ � c �S K MAR ! c i F;pi, t,A, i t I •� I 61 I 0,7LOT F OUTLGT G I Councilmember introduced the following resolution and moved its adoption: CITY OF SHAKOPEE COUNTY OF SCOTT STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A CONTRACT FOR PRIVATE DEVELOP- MENT WITH MINNESOTA RACETRACK LIMITED PARTNER- SHIP. BE IT RESOLVED by the City Council ( the "Council" ) of the City of Shakopee, Minnesota ( the "City" ) , as follows : Section 1 . Recitals . 1 . 01 . The Council has approved and adopted a redevelop- ment project within the corporate limits of the City ( "Minn- esota River Valley Housing and Redevelopment Project No. 1" ) pursuant to the provisions of Minnesota Statutes , Sections 462 . 411 to 416 . 716, inclusive, as amended, and has approved and adopted a redevelopment plan therefore entitled "Modi- fied Housing and Redevelopment Plan for Minnesota River Valley Housing and Redevelopment ProjecNo. 1 ( the "Rede- velopment Plan" ) . 1. 02 . The Council has received and reviewed a proposed Contract for Private Development ( the "Development Agree- ment" ) by and among the City, the Housing and Redevelopment Authority in and for the City, and Minnesota Racetrack , Inc. , a Minnesota corporation ( the "Company" ) relating to the construction of an approximately 390 acre thoroughbred horse-racing facility. The Council finds that the Develop- ment Agreement is in conformance with the Redevelopment Plan and in the best interest of the City and the Authority. Section 2 . Execution of Development Agreement by the Council . _ 2 .01 . The Council hereby approves and authorizes the execution of the Development Agreement and any other docu- ments deemed necessary. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following voted in favor thereof : (CC-2) G' and the following voted against the same : Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the City Clerk . Dated: February 28 , 1984 Mayor ATTEST: Clerk 2 - Councilmember introduced the following resolution and moved its adoption: CITY OF SHAKOPEE COUNTY OF SCOTT STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION RELATING TO THE ESTABLISHMENT BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF SHAKOPEE OF PROPOSED TAX INCREMENT DISTRICT NO. 4 AND GIVING PRELIMINARY CONCEPT APPROVAL THERETO. BE IT RESOLVED by the City Council ( the "Council" ) of the City of Shakopee , Minnesota ( the "City" ) , as follows: Section 1 . Recitals . 1 . 01. It has been proposed and approved by the Housing and Redevelopment Authority in and for the City ( the "Authority" ) that the Authority establish a new tax incre- ment district within Minnesota River Valley Housing and Redevelopment Project No. 1 ( "Redevelopment Project No. 1" ) , pursuant to and in accordance with Minnesota Statutes , Sections 273 .71 to 273 .86, inclusive, as amended, and that the proposed tax increment district be designated as Tax Increment District No. 4 ( "Tax Increment District No. 4" ) . 1 . 02. The Authority has caused to be prepared, and this Council has investigated the facts with respect to a pro- posed Tax Increment Financing Plan for proposed Tax Incre- ment District No. 4 ( the "Tax Increment Financing Plan" ) , defining more precisely the property included in Tax Incre- ment District No. 4 and describing the action to be under- taken by the Authority and the City to establish Tax Incre- ment District No. 4 . The Tax Increment Financing Plan has been adopted by the Authority. 1 . 03 . The Authority and the City_ have performed all actions required by law to be performed prior to the estab- lishment of proposed Tax Increment District No. 4 and the adoption of the proposed Tax Increment Financing Plan re- lating thereto, including, but not limited to, the holding of a public hearing upon published notice as required by law. (CC-3) Section 2 . Findings for the Establishment of Proposed Tax Increment District No. 4 . 2 . 01 . The Council finds , determines and declares that proposed Tax Increment District No. 4 constitutes a "tax increment district" as defined in Minnesota Statutes , Sec- tion 273 . 73 , Subdivision 9 , and further constitutes a type of "economic development district" , as defined in Minnesota Statutes, Section 273 . 73 , Subdivision 12 . 2 .02 . The Council finds , determines and declares that the proposed development , in the opinion of the Council, could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. 2 . 03 . The Council finds , determines and declares that the proposed Tax Increment Financing Plan for proposed Tax Increment District No. 4 conforms to the general plan for the development and redevelopment of the City as a whole . 2 . 04 . The Council finds , determines and declares that the proposed Tax Increment Financing Plan for proposed Tax Increment District No. 4 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of Redevelopment Project No. 1 by private enterprise. 2 . 05 . The Council hereby elects the method of tax in- _ crement calculation set forth in Minnesota Statutes Section 273 .76 , Subdivision 3, Clause ( b) . 2 .06 . The Council has set forth the reasons and sup- porting facts for each of the above determinations made in this Section 2 in writing pursuant to Minnesota Statutes , Section 273 . 74 , Subd. 3 . 2 .07 . The City ' s and the Authority' s purpose in cre- ating Tax Increment District No. 4 is to provide tax incre- ment financing assistance to Minnesota Racetrack , Inc . , a Minnesota corporation ( the "Company" )_, or an affiliated entity, to construct and operate an approximately 390 acre thoroughbred horseracing facility within the City ( the "Project" ) . Based upon the representations of the Company, the City believes that the Project would not be economically viable and would not be undertaken without tax increment financing assistance . The City, the Authority and the Com- pany have approved execution of a Contract for Private De- velopment ( the "Development Contract" ) with respect to the mutual undertakings of the City, the Authority and the Com- pany with respect to construction and operation of the Proj- - 2 - ect and the proposed tax increment assistance therefor . The ability of the Company to undertake the Project is contin- gent upon award of Class A and Class B licenses to operate a horseracing facility to the Company or an affiliated entity by the Minnesota Racing Commission . 2 . 08 . Due to the limitation of the period of time that tax increment may be received by an authority subsequent to approval of the applicable tax increment financing plan pursuant to Minnesota Statutes, Section 273 . 75 , subd. 1 , approval of the Tax Increment Financing Plan prior to such time as the Company shall be legally authorized to and shall have undertaken the Project is not, in the opinion of the City, in the best interests of either the City, the Authority or the Company. Based upon the representations of the Company, the City believes that the Project may not be economically viable and may not be undertaken unless the maximum available tax increment assistance is provided to the Company . 2 . 09 . The Council further finds that , at such time as the Company shall be legally authorized to and shall under- take the Project , the establishment of proposed Tax Incre- ment District No. 4 is intended and, in the judgment of this Council, its effect will be, to promote the purposes and objectives specified in this Section 2 and otherwise promote certain public purposes and accomplish certain objectives specified in the Modified Redevelopment Plan for Redevelop- ment Project No. 1 and in the proposed Tax Increment Financing Plan for Tax Increment District No. 4 . Section 3 . Concept Approval of the Proposed Tax In- crement Financing Plan. 3 . 01. The Council hereby gives preliminary concept approval to the proposed Tax Increment Financing Plan for Tax Increment District No. 4 substantially in the form pre- sented to the Council on this date. 3 . 02 . For the reasons stated in Sections 2 . 07 and 2 . 08 hereof, the City believes that it is not in the best inter- ests of the City, the Authority or the Company to give final approval of the Tax Increment Financing Plan within the meaning of Minnesota Statutes, Section 273 .74 , subd. 3 , at this time . Pursuant to the provisions of the Development Contract, upon award of Class A and Class B racing fran- chises to the Company or affiliated entities, it is the intention of the City to approve the Tax Increment Financing Plan in substantially the form submitted to it as of this date at such time as the City shall deem optimal to facili- tate the goals of the Tax Increment Financing Plan and con- struction of the Project . - 3 - l) The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , 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 and attested to by the City Clerk . Dated: February 28, 1984 . Mayor Attest : City Clerk 4 - /j DRAFT February 22 , 1984 TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 4 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF SHAKOPEE, MINNESOTA ADOPTED BY THE AUTHORITY FEBRUARY 14, 1984 APPROVED IN CONCEPT BY THE CITY COUNCIL FEBRUARY 28, 1984 This document was drafted by: O' CONNOR & HANNAN 3800 IDS Tower 80 South Eighth Street Minneapolis , Minnesota 55402 612/341-3800 TABLE OF CONTENTS (This Table of Contents is not part of the Tax Increment Financing Plan for Tax Increment District No. 4 and is only for convenience of reference . ) TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 4 Page Section 1 . 1 . Definitions . . . . . . . . . . . . . . . . . . . . . . . . 1-1 Section 1 . 2 . Statement of Objectives ( ref) . . . . . . . . . 1-2 Section 1 . 3 . Modified Housing and Redevel- opment Plan ( ref ) . . . . . . . . . . . . . . . . . . . . 1-2 Section 1 . 4 . Parcels to be Included in Tax Increment District No. 4 . . . . . . . . . . . . . . 1-3 Section 1 . 5 . Parcels in Acquisition. . . . . . . . . . . . . . . . 1-3 Section 1 . 6 . Development Activity in Housing and Redevelopment Project No. 1 for which Contracts have been Signed. . . . . . . . . . . . 1-4 Section 1 .7 . Other Specific Development Expected to Occur within Housing and Redevelopment Project No. 1 . . . . . . . . . . . . . . . . . . . . . . 1-4 Section 1.8. Estimated Cost of Project . . . . . . . . . . . . . 1-4 Section 1 .9 . Bonded Indebtedness to be Incurred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Section 1 . 10 . Sources of Revenue. . . . . . . . . . . . . . . . . . 1-4 Section 1 . 11 . Estimated Captured Assessed• Value and Estimate of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Section 1 . 12 . Type of Tax Increment District . . . . . . . . 1-4 Section 1 . 13 . Duration of Tax Increment District No. 4 . . . . . . . . . . . . . . . . . . . . . . . . 1-5 Section 1 . 14 . Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . . 1-5 Section 1. 15 . Modification of Tax Increment District No. 4 and/or Tax Increment Financing Plan. . . . . . . . . . . . . . 1-6 Exhibit A Map of Property within Tax Increment District No. 4 . . . . . . . . . . . . . .A-1 ( i} TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 4 Section 1 . 1 . Definitions . The terms defined below shall , for purposes of this Tax Increment Financing Plan, have the meanings herein specified, unless the context otherwise specifically requires : "Authority" means this housing and redevelopment author- ity created or authorized to be created by the Housing and Redevelopment Act defined below. "City" means the City of Shakopee, a municipal corpora- tion and political subdivision of the State of Minnesota, subject to the legal requirements of Chapter 412 of Minne- sota Statutes relating to statutory cities . "Commissioners" means the five commissioners consti- tuting the Authority who are appointed by the Mayor , with the approval of the City Council , as provided in §462 . 425 , Subd. 6 of the Housing and Redevelopment Act . "Comprehensive Plan" means the City ' s comprehensive plan submitted to the Metropolitan Council pursuant to Minnesota Statutes, §473 . 173 , which contains the objectives, policies , standards and programs to guide public and private land use, development , redevelopment and preservation for all lands and water within the City through 1990 . "Council" means the City Council of the City, also re- ferred to as the governing body as defined in Minnesota Statutes, §462 . 421, Subd. 5. "County" means the County of Scott , Minnesota . "Housing and Redevelopment Act" means the statutes lo- cated at Minnesota Statutes , §§462 . 411 through 462 . 716 , in- clusive, as amended. "Housing and Redevelopment Authority" means this housing and redevelopment authority created or authorized to be created by Minnesota Statutes, §§462 . 415 to 462 . 705 . "Housing and Redevelopment Project No. 1" means the Minnesota River Valley Housing and Redevelopment Project No. 1, a "project" as said term is defined in Minnesota Stat- utes, §462 . 421 , Subd. 13 . "Modified Housing and Redevelopment Plan" means the plan as modified from time to time by the Authority and the City for the Housing and Redevelopment Project . 1 - 1 "Project" means Housing and Redevelopment Project No. 1 , the public improvements and facilities to be constructed within Housing and Redevelopment Project No. 1 . "Project Area" means the real property located within the geographic boundaries of Housing and Redevelopment Proj- ect No. 1. "Redevelopment Plan" means the original plan approved on January 2 , 1979 and modified from time to time by the Authority and the City for Housing and Redevelopment Project No. 1 as defined in §462 . 421, Subd. 15, of the Housing and Redevelopment Act . "State" means the State of Minnesota. "Tax Increment Bonds" means the general obligation tax increment bonds issued and to be issued by the City to fi- nance the public costs associated with Housing and Rede- velopment Project No. 1 as stated in the Modified Housing and Redevelopment Plan and in the Tax Increment Financing Plan for Tax Increment District No. 4 within Housing and Redevelopment Project No. 1 . The term "Tax Increment Bonds" shall also include any obligations issued to refund the Tax Increment Bonds . "Tax Increment District No. 4" means this tax increment district to be established in Housing and Redevelopment Project No. 1 . "Tax Increment Financing Act" means the statutory provi- sions of Minnesota Statutes, §§273 .71 through 273 . 78, inclu- sive, as amended. "Tax Increment Financing Plan" means this Tax increment Financing Plan for Tax Increment District No. 4 located within the Project Area. Tax increment District No. 4 is the fourth tax increment district to be included in Minnesota River Valley Housing and Redevelopment Project No. 1 . The first tax increment district within the Project area was the K-Mart Tax Incre- ment District adopted on January 2 , 1979 and modified on July 17 , 1979 . This tax increment district is to be redesignated as Tax Increment District No. 1 . The Elderly Highrise Redevelopment Project adopted on August 21, 1979 and modified on December 22 , 1981 is to be redesignated as Tax Increment DistrictNo. 2 within Modified Housing and Redevelopment Project No. 1 . The Downtown Tax Increment Financing District No. lA was adopted on June 29 , 1 - 2 1982 and is to be redesignated at Tax Increment District No. 3 within Modified Housing and Redevelopment Project No. 1 . In anticipation of the above redesignations , the Authority has requested that this tax increment district be designated as Tax Increment District No. 4 . Section 1 . 2 . Statement of Objectives . See Section I , Modified Housing and Redevelopment Plan for Minnesota River Valley Housing and Redevelopment Project No. 1, "Modified Housing and Redevelopment Plan" , Subsection 1 . 4 , Statement of Objectives, of the Modified Housing and Redevelopment Plan. Section 1 . 3 . Modified Housing and Redevelopment Plan. See Section I , Modified Housing and Redevelopment Plan, Subsections 1 . 2 through 1 . 14 . Section 1 . 4 . Parcels to be Included in Tax Increment District No. 4 . The following parcel located in the City of Shakopee, County of Scott , State of Minnesota: The Northeast Quarter of the Southeast Quarter of Section 5 , Township 115, Range 22, Scott County, Minnesota, excepting therefrom: The West 150 . 00 feet of the North 333 . 00 feet of the Northeast Quarter of the Southeast Quarter of Section 5, Township 115 , Range 22 . The South Half of the Southeast Quarter of Section 5 , Township 115 , Range 22 , Scott County, Minnesota. The Southwest Quarter of the Southwest Quarter of Section 4 , Township 115 , Range 22 , Scott County, Minnesota. That part of the East Half of the Northeast Quarter of Section 8 , Township 115 , Range 22 , Scott County, Minnesota, lying northerly of the centerline of County Road No. 16 . FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCEL TO BE INCLUDED IN TAX INCREMENT DISTRICT NO. 4 CAN BE OBTAINED FROM THE OFFICE OF THE CITY ADMINISTRATOR. 1 - 3 Section 1 . 5 . Parcels to be acquired. The Authority acquired and reconveyed the parcels identified in Section I , Subsection 1 . 6 of the Modified Housing and Redevelopment Plan as originally adopted on January 2 , 1979 and will acquire the parcels identified in Section I , Subsection 1 . 6 of the same Plan as approved in concept on February 28, 1984 . As the Authority acquires said parcels , the Tax In- crement Financing Plan for Tax Increment District No. 4 will be modified to reflect the acquisitions of said parcels . The following are conditions under which properties not designated to be acquired may be acquired at a future date: ( 1) The Authority may acquire property by gift , dedica- tion, condemnation or direct purchase from willing sellers in order to achieve the objectives of the tax increment financing plan; and ( 2 ) Such acquisitions will be undertaken only when there is assurance of funding to finance the acqui- sition and related costs . Section 1 . 6 . Development Activity in Housing and Rede- velopment Project No. 1 for which Contracts have been Signed. The following contracts have been entered into by the City of Shakopee and the persons named below: [Contracts entered into by the City of Shakopee or the Authority will be inserted in this Subsection as they are consummated. ] Section 1 . 7 . Other Specific Development Expected to Occur within Housing and Redevelopment Project No. 1 . (As specific development is expected to occur , it will be inserted in this Subsection. ] Section 1 . 8 . Estimated Cost of Project . Public improvements , which may include the following: land acquisition, earthwork and grading, site lighting and fencing, open space amenities, sidewalk , curb and gutter , watermains , sanitary and storm sewers, roads and parking, other eligible site preparation work, land sale and Environ- mental Impact Statement, will not exceed $7 , 000 , 000 . Subsection 1. 9 . Bonded Indebtedness to be Incurred. It is anticipated that $8, 250 , 000 of bond indebtedness will be incurred with respect to this portion of Housing and Rede- velopment Project No. 1 . 1 - 4 Section 1 . 10 . Sources of Revenue. It is anticipated that the major source of revenue will be provided through the issuance of general obligation tax increment bonds as well as through special assessment bonds . Section 1 . 11 . Estimated Captured Assessed Value and Estimate of Tax Increment . The most recent assessed value ( the original assessed value) of Tax Increment District No. 4 is estimated to be $97 ,660 . The estimated captured assessed value of Tax Increment District No. 4 at completion is estimated to be $14,902 , 340 . Section 1 . 12 . Type of Tax Increment District . Tax Increment District No. 4 is , pursuant to Minnesota Statutes Section 272 . 73 , Subd. 12 , an economic district as defined below: " . . .a type of tax increment financing district which consists of any project , or portions of a project , not meeting the requirements found in the definition of redevelopment district or housing district , but which the authority finds to be in the public interest because: (a) It will discourage commerce, industry or manufacturing from moving their operations to an- other state; or (b) It will result in increased employment in the municipality; or (c) It will result in preservation and en- hancement of the tax base of the municipality. " Section 1 . 13 . Duration of Tax Increment District No. 4 . The duration of Tax Increment District No. 4 is expected Eo be eight ( 8 ) years from the receipt of the first tax increment . The City will forego any tax increments accruing in 1986 and will receive its first full tax increment in 1987 . Section 1. 14 . Estimated Impact on Other Taxing Juris- dictions . The estimated impact of Tax Increment District No. 4 on the other taxing jursidictions within which Tax Increment District No . 4 is set forth in the following table: 1 - 5 IMPACT ON TAX BASE Original District Future District Assessed % of Assessed , of Entity Tax Base Value Entity Value Entity Scott County $293,671,922 $97,660 .033% $15,000,000 5.108% I.S.D. #720 101,425,043 97,660 .096 15,000,000 14.789 Shakopee 96,443,444 97,660 .101 15,000,000 15.553 IMPACT ON MILL RATES Current Potential Entity Mill Rate Taxes Scott County 33 . 004 $495, 060 I .S .D. #720 55 .630 834, 450 Shakopee 10 . 471 157 , 065 Other ( 1 ) 4 . 493 67 , 395 ( 1) Other taxing entities include the HRA, Metropolitan Mosquito Control District , Lower Minnesota Watershed Dis- trict, Metropolitan Council, Metropolitan Transit Commis- sion. Section 1.15. Modification of Tax Increment District No. 4 and/or Tax Increment Financing Plan. As of February 28, 1984 , no modifications to Tax Incre- ment District No. 4 or the Tax Increment Financing Plan therefor have been made. 1 - 6 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF SHAKOPEE CITY OF SHAKOPEE COUNTY OF SCOTT STATE OF MINNESOTA RESOLUTION NO. 84-3 A RESOLUTION APPROVING A CONTRACT FOR PRIVATE DEVELOP- MENT WITH MINNESOTA RACETRACK, INC. , AND THE SALE OF CERTAIN LAND BY THE AUTHORITY PURSUANT THERETO BE IT RESOLVED by the Commissioners ( the "Commission- ers" ) of the Housing and Redevelopment Authority ( the "Authority" ) in and for the City of Shakopee, Minnesota ( the "City" ) , as follows : Section 1 . Recitals . 1. 01. The Authority has approved and adopted a redevel- opment project within the corporate limits of the City ( "Minnesota River Valley Housing and Redevelopment Project No. 1" ) pursuant to the provisions of Minnesota Statutes, Sections 462 . 411 to 416 .716, inclusive, as amended, and has prepared a redevelopment plan therefor entitled "Modified Housing and Redevelopment Plan for Minnesota River Valley Housing and Redevelopment Project No. 1" ( the "Redevelopment Plan" ) , which Redevelopment Plan has been approved by the Planning Commission and the City Council of the City. 1. 02 . The acquisition of a certain parcel of land ( the "Development Property" ) , legally described in Exhibit A attached hereto, and the subsequent sale or lease of the Development Property to a private developer for commercial development , are stated objectives of the Redevelopment Plan. 1. 03 . The Authority has received and reviewed a pro- posed Contract for Private Development ( the "Development Agreement" ) by and among the City, the _Authority and Minne- sota Racetrack , Inc . , a Minnesota corporation ( the "Com- pany" ) relating to the acquisition of the Development Prop- erty by the Authority and resale thereof to the Company for the construction of an approximately 390 acre thoroughbred horse-racing facility. The Authority finds that the Devel- opment Agreement is in conformance with the Redevelopment Plan and in the best interests of the City and the Authority. (HRA-1 ) EXHIBIT A LEGAL DESCRIPTION The Northeast Quarter of the Southeast Quarter of Section 5 , Township 115 , Range 22 , Scott County, Minnesota excepting therefrom: The West 150 . 00 feet of the north 333 . 00 feet of the Northeast Quarter of the Southeast Quarter of Section 5 , Township 115 , Range 22 . The South Half of the Southeast Quarter of Section 5, Township 115 , Range 22 , Scott County, Minnesota . The Southwest Quarter of the Southwest Quarter of Section 4 , Township 115 , Range 22 , Scott County, Minnesota . That part of the East Half of the Northeast Quarter of Section 8, Township 115 , Range 22 , Scott County, Minnesota, lying northerly of the centerline of County Road No. 16 . The Northwest Quarter of Section 9 , Township 115 , Range 22, Scott County, Minnesota ex- cepting therefrom: The south 400 feet of the west 100 feet of the South Half of the Northwest Quar- ter . The East Half of the Southwest - Quarter of Section 9 , Township 115, Range 22 , Scott County, Minnesota, lying northerly of the centerline of County Road No. 16 . x A - 1 1 . 04. The Authority hereby declares that due public notice was given and that a public hearing was held on February 21 , 1984 , in accordance with law, on the sale of the Development Property to the Company. Section 2 . Execution of Development Agreement; Acquisi- tion and Reconveyance of Development Property by the Authority. — 2 . 01 . The Authority hereby approves the execution of the proposed Development Agreement , and directs the Chairman and the Executive Director of the Authority to execute the Development Agreement and any other documents deemed neces- sary for the conveyance of the Development Property. 2 . 02 . The Authority shall proceed to acquire the De- velopment Property and reconvey the Development Property to the Company pursuant to the terms of the Development Agree- ment and in conformance with the objectives and provisions of the Redevelopment Plan. ADOPTED BY THE COMMISSIONERS OF THE AUTHORITY ON FEBRU- ARY 28, 1984 . Chairman ATTEST: Executive Director 2 - HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF SHAKOPEE CITY OF SHAKOPEE COUNTY OF SCOTT STATE OF MINNESOTA RESOLUTION NO. 84-4 A RESOLUTION EXTENDING THE PERIOD DURING WHICH THE CITY COUNCIL OF THE CITY OF SHAKOPEE MAY HOLD THE PROPOSED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 4 FOR REVIEW BE IS RESOLVED by the Commissioners ( the "Commis- sioners" ) of the Housing and Redevelopment Authority in and for the City of Shakopee , Minnesota ( the "Authority" ) , as follows : Section 1 . Recitals . 1 . 01 . The Authority, on February 14 , 1984 , approved a tax increment financing plan captioned "Tax Increment Financing Plan for Tax Increment District No. 4" ( the "Tax Increment Financing Plan" ) providing for the creation of a tax increment financing district within the Authority ' s Minnesota River Valley Housing and Redevelopment Project No. 1 , and submitted the Tax Increment . Financing Plan to the City Council ( the "City Council" ) of the City of Shakopee ( the "City" ) for review and approval . 1 . 02 . Minnesota Statutes , Section 273 . 74 , subd. 3, provides that where a tax increment financing plan has been submitted by an approving authority to a municipality for approval, if the municipality shall not approve or dis- approve the tax increment financing plan within sixty days of submission by authority, the plan shall be deemed approved. 1 . 03 . The Authority ' s purpose in adopting the Tax In- crement Financing Plan is to provide tax increment financing assistance to Minnesota Racetrack , Inc. , a Minnesota corpo- ration ( the "Company" ) , or an affiliated entity, to con- struct and operate an approximately 390 acre thoroughbred horseracing facility within the City ( the "Project" ) . Based upon the representations of the Company, the Authority be- lieves the Project will not be economically viable and will not be undertaken without tax increment financing assistance . The City, the Authority and the Company have (HRA-2 ) negotiated, and the Authority has approved the execution of, a Contract for Private Development ( the "Development Con- tract" ) with respect to the mutual undertakings of the City, the Authority and the Company with respect to construction and operation of the Project and the tax increment assistance therefor . The ability of the Company to under- take the Project is contingent upon award of Class A and Class B licenses to operate a horseracing facility to the Company or an affiliated entity by the Minnesota Racing Commission. 1 . 04 . Due to the limitation placed on the period of time that an authority' may receive tax increment from an "economic development district" after the date of final municipal approval of the applicable tax increment financing plan pursuant to Minnesota Statutes, Section 273 . 75 , subd. 1 , final approval of the Tax Increment Financing Plan and certification of Tax Increment Financing District No. 4 by the Assessor for Scott County prior to such time as the Company shall be legally authorized to and shall have under- taken the Project is not , in the opinion of the Authority, in the best interests of either the City, the Authority, or the Company. Based upon the representations of the Company, the Authority believes that the Project may not be economic- ally viable and may not be undertaken unless the maximum available tax increment assistance is provided to the Com- pany. Section 2 . Extension of Time for Action by the City. 2 . 01 . For the reasons given in Sections 1 . 03 and 1 . 04 above, the Authority does not believe that it is in the best interests of the Authority, the City or the Company to re- quire that the City take final action to approve or dis- approve the Tax Increment Financing Plan within sixty days of submission by this Authority. Therefore, the Authority hereby waives the benefit of the provisions of Minnesota Statutes , Section 273 . 74 , subd. 3 , to the extent that such statute provides that a tax increment financing plan must be approved or disapproved by a municipality within sixty days of submission by an authority or such plan shall be deemed approved, and hereby extends to November 13 , 1984 , the period during which the City Council of the City may hold the plan under review without taking action to give final approval or disapproval to the Tax Increment Financing Plan. The Authority does not by this resolution seek in any - 2 - j! way to limit or modify the undertakings of the City or the Authority under the Development Contract . Dated: 1984 . Adopted by the Commissioners of the Authority on Febru- ary 28, 1984 . Chairman ATTEST: Executive Director 3 - RESOLUTION NO. 2229 A RESOLUTION APPROVING THE SHAKOPEE RACETRACK DESIGN DEVELOPMENT DRAWINGS DATED DECEMBER 1, 1983 WHEREAS , the Shakopee Racetrack Design Development Drawings dated December 1 , 1983 , have been prepared by Ewing Cole Krause, Ewing Cole Cherry Parsky and Hammel Green Abrahamson, Inc . , ; and WHEREAS , the City Planner, Judi Simac , has reviewed said drawings and found them to be in compliance with the City of Shakopee Zoning Code requirements ; and WHEREAS , the City Engineer, Henry R. Spurrier, has reviewed said drawings ; has found the final drainage plan to be complete ; and has determined that the preliminary analysis , prepared for that i Plan required by Condi tional Use Permit No. 351 , conforms to the City of Shakopee Design Criteria, so long as the Final Drainage Report , incorporating final site details is submitted and approved prior to issuance of a Certificate of Occupancy for the Racetrack, and so long as any variance from the final drainage plan is submitted for review and approval by the City Engineer; and WHEREAS , the City Building Official , LeRoy Houser, has reviewed said drawings and found them to be in conformance to the Building Code in the City of Shakopee subject to review and approval of final construction drawings . NOW, THEREFORE, BE IT RESOLVED BY THE SHAKOPEE CITY COUNCIL THAT the Shakopee Racetrack Design Development drawings are here by approved. Adopted in session of the City Council of the City of Shakopee , Minnesota, held this day of , 1984.