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Home My WebLink About05/24/2011C I T Y O F, NDOVE. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US Andover Planning and Zoning Commission Meeting Agenda May 24, 2011 Andover City Hall Council Chambers 7.00 p.m. 1. Call to Order 2. Approval of Minutes — March 8, 2011 3. Review Proposed Adoption of a Modification to the Development Program for Development District No.I and the Proposed Adoption of the Modifications to the Tax Increment Financing Plans for Tax Increment District Nos. 1-1 and 1 -2, Both Redevelopment Districts 4. PUBLIC HEARING: Consider changes to City Code to comply with variance legislation enacted by the State of Minnesota. 5. Work Session: Discuss status of planning and development 6. Other Business 7. Adjournment r 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Planning and Zoning Commissioners FROM: Courtney Bednarz, City Planner SUBJECT: Item 2. Approval of Minutes - March 8, 2011 DATE: May 24, 2011 Request The Planning and Zoning Commission is asked to approve the minutes from the March 8, 2011 meeting. PLANNING AND ZONING COMMISSION MEETING MARCH 8, 2011 The Regular Bi- Monthly Meeting of the Andover Planning and Zoning Commission was called to order by Chairperson Kirchoff on March 8, 2011, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners present: Chairperson Kirchoff, Commissioners Dennis Cleveland, Lynae Gudmundson, Valerie Holthus, Michael Olsen, and Devon Walton. Commissioners absent: Chairperson Daninger. Also present: City Planner, Courtney Bednarz Others OATH OF OFFICE Commissioners Holthus and Olsen took the Oath of Office. APPROVAL OFMINUTES. December 14, 2010 Motion by Cleveland, seconded by Holthus, to approve the minutes as presented. Motion carried on a 4 -ayes, 0 -nays, 2- present (Walton, Olsen) 1- absent (Daninger) vote. PUBLIC HEARING CONDITIONAL USE PERMIT (11 -01) FOR OUTDOOR STORAGE AT ABC MINI STORAGE LOCATED AT 13624 HANSON BOULEVARD NW. Mr. Bednarz noted the purpose of this item was to hold a public hearing and take input on the application for a Conditional Use Permit at ABC Mini Storage for outdoor storage. Commissioner Olsen asked if Council had taken a position regarding the variance legislation. Mr. Bednarz responded the Council was following legal advice to issue variances very carefully. Commissioner Olsen stated it appeared the Supreme Court had limited the variance rules and had basically tied the hands of the Cities. Motion by Walton, seconded by Cleveland, to open the public hearing at 7:13 p.m. Motion carried on a 6 -ayes, 0 -nays, 1- absent (Daninger) vote. Kraig Domogalla, ABC Mini Storage, 13624 Hanson Boulevard NW, stated he had owned the mini storage business since 2004 and he was attempting to get additional income as his property taxes have raised significantly the past few years. He noted this area would be used for boat and other outdoor storage. He noted this had a gravel base and had remained untouched since he purchased the property. He did not believe buses had been stored on the site prior to his purchase. He noted there was a back gate, but that gate was locked. He indicated hours and access would not change. He stated he would add additional cameras to cover the storage area. He stated everything that would be stored was on a month to month lease and he would not allow junk to be stored on the property. 1 Regular Andover Planning and Zoning Commission Meeting y� +' Minutes — March 8, 2011 Page 2 Commissioner Cleveland asked what type of storage he was talking about. Mr. Domogalla stated he believed he would have approximately 22 stalls for rent. Commissioner Cleveland asked if any of the area was paved. Mr. Domogalla responded there was no pavement and there was a power line easement overhead, so he could not build any structures. He stated the best that could be done in this area was storage, which could be moved as needed. Commissioner Cleveland asked if the amount of impervious surface would be an issue. Mr. Bednarz responded that it would not. He added that east side of the site drains to Grouse Street and the pond to the south. The City Engineer had been consulted and it was his belief that the drainage would continue work the same. Commissioner Gudmundson inquired about the current snow storage. Mr. Domogalla responded he had a lot of room to put snow and if necessary he would not rent a few storage units, or he would truck it off site. Commissioner Walton asked how many people accessed his site. Mr. Domogalla responded that very few people visited the site maybe a dozen at most per day. Commissioner Gudmundson asked how would a fee be based versus an indoor unit and were all of the units now filled. Mr. Domogalla responded the fees would be half of the cost of an indoor storage and he currently had all of his units rented out except one.. Commissioner Walton asked if he was on site. Mr. Domogalla responded he was on site during normal hours of operation. Commissioner Gudmundson asked if this was granted, would the landscaping, etc. need to be met. Mr. Bednarz responded they could require compliance, grant variances, or change the requirements. Commissioner Holthus asked how many variances would be necessary if this was approved. Mr. Bednarz responded three variances would need to be granted if compliance was not required. Commissioner Walton asked how tall the fence was on the backside. Mr. Domogalla responded the fence was six feet. Commissioner Walton stated there might not be an opportunity to pave the area as Xcel had the right to approve it. Commissioner Walton asked why Grouse Street could not be the main entrance. Mr. Domogalla responded Hanson Boulevard traffic allowed easy in and out traffic and he also invested $45,000 for the service road. Motion by Walton, seconded.by Cleveland, to close the public hearing at 7:28 p.m. Motion carried on a 7 -ayes, 0 -nays, 1- absent (Daninger) vote. Regular Andover Planning and Zoning Commission Meeting Minutes — March 8, 2011 Page 3 Commissioner Olsen stated he was amicable to the idea of the CUP, but he had a concern about the variance requests due to the Supreme Court decision. He stated he understood the reason the applicant wanted the CUP. Commissioner Walton noted since the Commission was not the authority for granting this, all they could do was discuss and make a recommendation and it would be up to the City Council to either approve or disapprove the CUP. Commissioner Olsen stated his concern was that if the variance request was denied, the applicant could not apply for another year for another variance. Mr. Bednarz stated they needed to keep in mind what the findings were if they choose to approve variances and if there was potential other sites that could make similar requests. Commissioner Gudmundson stated she was concerned about the visual aspect of the request. She stated it is contrary to the city's efforts to improve sites along Bunker Lake Boulevard. She indicated she was not in favor of the CUP. Mr. Domogalla noted this was an industrial area. Commissioner Olsen believed that with the city's regulations for parking on residential lots this is a service that is needed in the community. Commissioners Cleveland, Holthus and Walton stated they were in favor of the CUP. Commissioner Olsen stated he did not have an issue with storage on the gravel. Commissioner Walton stated with respect to curb and gutter they had required paving and curb and gutter be put in for a used car dealer in a similar situation. Commissioner Olsen noted that business had cars parked on and it was being used as a parking lot. Chairperson Kirchoff noted there was another site within the other industrial park where full compliance was not required. Mr. Bednarz stated that was correct. He added that using the interim performance standards established for that area the Council required improvements to the front parking area adjacent to the street, but not to the yard at the rear of the lot. Commissioner Cleveland believed if the applicant needed to meet all of these requirements, he would be out of business. He noted this was a unique property and business. Commissioner Gudmundson stated she did not agree with waiving the paving requirement and she also wanted to see curbing. It was the consensus of a majority of Commissioners that they were comfortable with gravel and there was not a need for additional curbing. Commission Cleveland stated he would like to see an effort with respect to landscaping. Mr. Domogalla stated the hard part with landscaping was that there was very little area for Regular Andover Planning and Zoning Commission Meeting Minutes — March 8, 2011 Page 4 landscaping and Xcel had removed what landscaping there was, with the exception of five trees. He stated this site had been there a long time and it was a unique site. Commissioner Cleveland asked if he could plant shorter trees along the Xcel line. Mr. Domogalla responded Xcel would need to approve anything along their line and the trees removed were not that tall. Chairperson Kirchoff asked if he could do anything along the fence line. Mr. Domogalla responded the fence was on the property line. He could put landscaping on the outside of the fence in the right -of -way, but there was no irrigation in that area. He stated on the inside of the fence behind the slats would be less visible. Commissioner Olsen asked if the city would allow planting in the right -of -way. Mr. Bednarz stated that they would prefer not to, but if it were required and the constraints of the site made it necessary, the minimum distance from the back of the curb would be eight feet. Commissioner Cleveland asked if planters outside the fence could be used. Mr. Bednarz responded staff would prefer to not have any planters in the right -of -way. Commissioner Olsen asked if there were any security issues with the slatted fence. Mr. Domogalla responded he has not had any issues and he would be putting cameras in the back. He noted the gate also closed automatically at 6:00 p.m. Chairperson Kirchoff stated he believed they were looking at screening in lieu of landscaping. Commissioner Walton suggested the items in the storage area be covered with a material that was the same color to blend into the color of the building. He stated any funds given to landscaping should maybe be put towards additional screening or a taller fence. Mr. Bednarz stated the Commission could recommend a taller fence. He noted a ten foot fence would require a building permit. Commissioner Gudmundson stated she still had a concern regarding the visual aspect of the property and she would like additional landscaping. It was the Commissions consensus to not require the 20 -foot setback for front yard parking area setback. Commissioner Cleveland stated he was in favor of sending this to the Council with the recommendation for the three variances. Commissioner Holthus stated she did not believe it was necessary to put in an entire new fence. She agreed with the other variances. Commissioner Gudmundson stated she would not approve this request. She did not believe there was a hardship shown and she wanted the applicant to comply with the ordinances. Commissioner Walton responded he was in favor of the CUP. He recommended that something be done to bring monotone coloring to everything that was back there. J6 Regular Andover Planning and Zoning Commission Meeting Minutes — March 8, 2011 Page 5 Chairperson Kirchoff did not believe there was a material change to this property, but rather just a use change. Motion by Holthus, seconded by Cleveland, to recommend to the City Council approval of Resolution No. R _' to approve a Conditional Use Permit for Outdoor Storage for ABC Mini Storage as written with the recommendation fresh Class 5 be put down in the storage area. Motion carried on a 4 -ayes, 2 -nays ( Gudmundson, Olsen), 1- absent (Daninger) vote. OTHER BUSINESS. Mr. Bednarz updated the Planning Commission on related items. ADJOURNMENT. Motion by Holthus, seconded by Gudmundson, to adjourn the meeting at 8:15 p.m. Motion carried on a 6 -ayes, 0 -nays, 1- absent (Daninger) vote. Respectfully Submitted, Kathleen Altman, Recording Secretary TimeSaver Off Site Secretarial, Inc. C I T Y O F ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Planning and Zoning Commissioners FROM: Courtney Bednarz, City Planned SUBJECT: Review Proposed Adoption of a Modification to the Development Program for Development District No. l and the Proposed Adoption of the Modifications to the Tax Increment Financing Plans for Tax Increment District Nos.1 -1 and 1 -2, Both Redevelopment Districts DATE: May 24, 2011 INTRODUCTION As the Economic Development Authority (EDA) moves toward the completion of tax increment districts established to enable the redevelopment of property near the closed landfill site, there are additional opportunities to build value and eliminate blighted housing within the established development district. DISCUSSION As a result, the (EDA) is proposing to modify the development program and tax increment financing plan to add parcels for potential future acquisition and to clarify budgets. City Administrator Jim Dickenson will be at the meeting to discuss the proposed changes. The attached document provides the history, objectives and budget for tax increment financing activities in the city. The proposed changes to the plan are shown in bold font as well as Exhibit B; the map of potential parcels for acquisition on the last page of the document. The boundary represented on this map encompasses much of the oldest housing in the city. When opportunities arise, the city may choose to purchase and redevelop properties to help maintain the overall quality and livability of the city's housing stock. The Planning Commission is asked to review the modifications for consistency with the Comprehensive Plan. The goals, objectives and policies contained within Chapter One of the Comprehensive Plan are attached. The proposed modifications are directly supported by Goal #1 of the Comprehensive Plan; to maintain and enhance the quality of life in Andover. The modifications are also supported by the attached land use and housing goals, objectives and policies. ACTION REQUESTED The Planning Commission is asked to approve a motion finding the proposed modifications to be consistent with the Comprehensive Plan. Attachments TIF Plan Comprehensive Plan Chapter One e p t �xbm tted, Co a edn As ofApril25, 2011 Draft for fiscal implications MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 . and the MODIFICATIONS TO THE TAX INCREMENT FINANCING PLANS for TAX INCREMENT FINANCING DISTRICT NO. 1 -1 (COUNTY NO. F9) and TAX INCREMENT FINANCING DISTRICT NO. 1 -2 (COUNTY NO. G1) both redevelopment districts located within DEVELOPMENT DISTRICT NO. 1 c � r v o r NDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY CITY OF ANDOVER ANOKA COUNTY STATE OF MINNESOTA TIF District No. 1 -1 Adopted: July 29, 1986 TIF District No. 1 -2 Adopted: September 2, 1986 Public Hearing on the Modifications: June 7, 2011 Modifications Adopted: Prepared ll ASSOCIATES, 1E H L E R S 3060 Centre Pointe Roseville, Minnesota 5513 -105 LEADERS IN PUBLIC FINANCE 651 -697 -8500 fax: 651 - 697 -8555 www.ehlers - inc.com TABLE OF CONTENTS (for reference purposes only) MUNICIPAL ACTION TAKEN .......................... ............................... i SECTION I. DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 ................ 1 -1 Subsection 1.1. Definitions ....................... ...... .. ....................... 1 -1 Subsection 1.2. Statement and Finding of Public Purpose .............................. 1 -2 Subsection 1.3. Statutory Authority ................ ............................... 1 -2 Subsection 1.4. Statement of Objectives ............ ............................... 1 -2 Subsection 1.5. Estimated Public Costs and Supportive Data ........................... 1 -3 Subsection 1.6. Environmental Control ............. ............................... 1 -6 Subsection 1.7. Proposed Reuse of Property ......... ............................... 1 -6 Subsection 1.8. Administration and Maintenance of the Development District .............. 1 -7 Subsection 1.9. Rehabilitation .................... ............................... 1 -7 Subsection 1.10. Relocation ...................... ............................... 1 -7 Subsection 1.11. Boundaries of the Development District .............................. 1 -7 Subsection 1.12. Parcels to be Acquired or Which may be Acquired in Whole or in Part Within the Development District ............. ............................... 1 -8 SECTION II. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -1 . ............................... 2 -1 Subsection 2.1. Statement of Objectives ............ ............................... 2 -1 Subsection 2.2. Development Program ............. ............................... 2 -1 Subsection 2.3. Parcels to be Included in Tax Increment Financing District No ............. 2 -1 Subsection 2.4. Parcels in Acquisition .............. ............................... 2 -1 Subsection 2.5. Development Activity in the Development District for which Contracts have beenSigned ................... ............................... .2 -2 Subsection 2.6. Other Specific Development Expected to Occur within the Development District............................. ............................2 -2 Subsection 2.7. Estimated Cost of Project ........... ............................... 2 -2 Subsection 2.8. Estimated Amount of Bonded Indebtedness ............................ 2 -3 Subsection 2.9. Sources of Revenue ................ ............................... 2 -4 Subsection 2.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment ......................... ............................2-4 Subsection 2.11. Mill Rate ....................... ............................... 2 -5 Subsection 2.12. Tax Increment ................... ............................... 2 -5 Subsection 2.13: Capitalized Interest ................ ............................... 2 -5 Subsection 2.14. Investment Interest Rate ........... ............................... 2 -5 Subsection 2.15. T pe of Tax Increment Financing District ............................ 2 -5 Subsection 2.16. Duration of Tax Increment Financing District No. 1- 1 ................... 2 -6 Subsection 2.17. Estimated Impact on Other Taxing_ Jurisdictions ........................ 2 -6 Subsection 2.18. Tax Increment Financing_ Account for Tax Increment Financing DistrictNo. 1 -1 . ................. ............................... 2 -8 Subsection 2.19. Modification of Tax Increment Financing District No.l -1 and /or Tax Increment Financing Plan .......... ............................... 2 -8 Subsection 2.20. Administrative Expenses . .......... ............................... 2 -8 Subsection 2.21. Use of Tax Increment .............. ............................... 2 -9 Subsection 2.22. Excess Increments . .............. ............................... 2 -10 SECTION III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -2 . ............................... 3 -1 Subsection 3.1. Statement of Objectives ............. ............................... 3 -1 Subsection 3.2. Development Program .............. ............................... 3 -1 Subsection 3.3. Parcels to be Included in Tax Increment Financing District No. 1 -2. ......... 3 -1 Subsection 3.4. Parcels in Acquisition . ............. ............................... 3 -1 Subsection 3.5. Development Activity In the Development District for which Contracts have beenSigned . ....................... ............................3 -1 Subsection 3.6. Other Specific Development Expected to Occur within the Development District ...... ...................... .................... ........ 3 -2 Subsection 3.7. Estimated Cost of Project ............ ............................... 3 -2 Subsection 3.8. Estimated amount of Bonded Indebtedness ............................. 3 -2 Subsection 3.9. Sources of Revenue . ............... ............................... 3 -3 Subsection 3.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment . ........................ ............................3 -3 Subsection 3.11. Mill Rate . ...................... ............................... 3 -4 Subsection 3.12. Tax Increment . .................. ............................... 3 -4 Subsection 3.13. Capitalized Interest ................ ............................... 3 -4 Subsection 3.14. Investment Interest Rate ............ ........... ... ................. 3 -4 Subsection 3.15. Tyne of Tax Increment Financing District ............................. 3 -4 Subsection 3.16. Duration of Tax Increment Financing District No. 1- 2 ................... 3 -5 Subsection 3.17. Estimated Impact on Other Taxing Jurisdictions ........................ 3 -5 Subsection 3.18. Tax Increment Financing Account for Tax Increment Financing District No. 1 -2 . ................. ............................... 3 -6 Subsection 3.19. Modification of Tax Increment Financing District No. 1 -2 and/or Tax Increment Financing Plan . ......... ............................... 3 -6 Subsection 3.20. Administrative Expenses ........... ............................... 3 -7 Subsection 3.21. Use of Tax Increment .............. ............................... 3 -7 Subsection 3.22. Excess Increments . ............... ............................... 3 -8 MUNICIPAL ACTION TAKEN Based upon the statutory authority described inthe Development Program attachedhereto, the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Development Program, the City Council has created, established and designated Development District No. 1 pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.126. The following municipal action was taken in connection therewith; July 29, 1986: The Development Program for Development District No. 1 was adopted by the City Council. September 2, 1986: The Development Program for Development District No. 1 was modified by the. City Council. September 15, 1987: The Development Program for Development District No. 1 was modified by the City Council. April 5,1994: The Development Program for Development District No. l was transferred by the City Council to the Andover Economic Development Authority ("EDA "). February 21,1995: The Development Program for Development District No. 1 was modified by the EDA to reflect increased geographic area and increased project costs. September 19, 1995: The Development Program for Development District No. 1 was modified to increase authorized public costs, increase maximum bonded indebtedness and identify additional parcels for potential acquisition. ` June 20, 2000: The Development Program for Development District No. 1 was modified by the EDA to reflect increased public costs (Subsection 1.5) and technical and clarifying changes in Subsections 1.1, 1.3, 1.8, 1.10, 1.12. November 17, 2009: The Development Program for Development District No. 1 was modified to clarify the budgets and duration of TIF District Nos. 1 -1 and 1 -2. June 7,2011: The Development Program for Development District No. I was modified to add parcels for acquisition to Tax Increment Financing Districts No. 1 -1 and No. 1 -2 and to clarify the budgets. The following municipal action was taken with regard to the Tax Increment Financing Districts located within Development District No. 1: Tax Increment Financing. District No. 1 -1: July 29, 1986: The Tax Increment Financing Plan for Tax Increment District No. 1 was adopted by the City Council. September 2, 1986: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was modified by the City Council. September 15, 1987: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was modified by the City Council. City of Andover Municipal Action Taken i April 5, 1994: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was transferred by the City Council to the Andover Economic Development Authority ( "EDA "). February 21, 1995: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was modified by the EDA to reflect increased geographic area and increased project costs within Development District No. 1. September 19, 1995: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was modified to increase authorized public costs, increase maximum bonded indebtedness and identify additional parcels for potential acquisition. June 20,2000: The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 was modified to reflect increased expenditures, increased maximum bonded indebtedness, and general revisions to reflect current statutory references and provisions. November 17, 2009: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was modified to clarify the budget and duration. June 7,2011: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 was modified to add parcels for acquisition and to clarify the budget. Tax Increment Financing District No. 1 -2: September 2, 1986: The Tax Increment Financing Increment Financing Plan for Tax Increment Financing District No. 1 -2 was adopted by the City Council. April 5, 1994: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 was transferred by the City Council to the Andover Economic Development Authority ("EDA"). February 21, 1995: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 was modified by the EDA to reflect increased geographic area and increased project costs within Development District No. 1. November 17, 2009: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 was modified to clarify the budget and duration. June 7,2011: The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 was modified to add parcels for acquisition and to clarify the budget. Tax Increment Financing District No. 1 -3: October 7, 1997: The Tax Increment Financing Increment Financing Plan for Tax Increment Financing District No. 1 -2 was adopted by the City Council. Tax Increment Financing District No. 1 -4: September 21, 2004: The Tax Increment Financing Increment Financing Plan for Tax Increment Financing District No. 1 -2 was adopted by the City Council. City of Andover Municipal Action Taken ii SECTION I. DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Subsection I.I. Definitions. The terms defined below shall, for purposes of this Development Program, have the meanings herein specified, unless the context otherwise specifically requires: "City" means the City of Andover, a municipal corporation and political subdivision of the State of Minnesota. "Comprehensive Plan" means the City's Comprehensive Plan 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. "Council" means the City Council of the City, also referred to as the governing body. (See "Governing Body" below). "County" means the County of Anoka, Minnesota. "Development District Act" means the statutory provisions of Minnesota Statutes, Sections 469.124 through 469.134 as amended and supplemented. "Development District" means Development District No. 1 in the City, which is created and established hereto pursuant to and in accordance with the Development District Act, and is geographically described in Section I, Subsection 1.11. of the Development Program. The Development District serves as the Project area for the purposes of Minnesota Statutes, Section 469.174, Subdivision 8. "Development Program" means this Development Program for Development District No.1, initially adopted by the Council on July 29, 1986. As defined in Minnesota Statutes, Section 469.125, Subdivision 3, a development program is a statement of objectives of the City for improvement of a development district which contains a complete statement as to the public facilities to be constructed within the district, the open space to be created, the environmental controls to be applied, the proposed reuse of private property and the proposed operations of the district after the capital improvements within the district have been completed. "EDA" means the Economic Development Authority for the City of Andover operating pursuant to Minnesota Statutes, Sections 469.090 through 469.1082. "Governing Body" means the duly elected City Council as defined in Minnesota Statutes, Section 472A.02, subdivision 10. "State" means the State of Minnesota "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued and to be issued by the City to finance the public costs associated with Development District No. I as stated in the Development Program and in the Tax Increment Financing Plan for each Tax Increment Financing District within Development District No. 1. The term "Tax Increment Bonds" shall also include any obligations issued to refund the Tax Increment Bonds. "Tax Increment Financing District" means any tax increment financing district presently established or to be established in the future within Development District No. 1. City of Andover Development Program for Development District No. 1 1 -1 "Tax Increment Financing Act" means the statutory provisions of Minnesota Statutes, Sections 469.174 through 469.1799 inclusive, as amended. "Tax Increment Financing Plan" means the respective Tax Increment Financing Plan for each Tax Increment Financing District located within Development District No. 1. Subsection 1.2. Statement and Finding of Public Purpose. The City Council (the "Council') of the City of Andover (the "City ") determines that there is a need for development and redevelopment within the corporate limits of the City in Development District No. 1 (the "Development District ") to provide employment opportunities, to improve the tax base and to improve the general economy of the State. It is found that the area within the Development District is potentially more useful and valuable than is being realized under existing development, is less productive than is possible under this program and, therefore, is not contributing to the tax base to its full potential. Therefore, the City has determined to exercise its authority to develop a program for improving the Development District of the City to provide impetus for private development, to maintain and increase employment, to utilize existing potential and to provide other facilities as are outlined in the Development Program adopted and modified by the City. The Council has also determined that the proposed development would not occur solely through private investment in the foreseeable future; that the tax increment financing plans proposed herein are consistent with the Development Program; and that the tax increment financing plans will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the Development District by private enterprise. The Council finds that the welfare of the City as well as the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce to carry out its stated public purpose objectives. Subsection 1.3. Statutory Authority. The Council determines that it is desirable and in the public interest to establish, develop and administer a Development Program for the Development District in the City to implement its Development District Plan, pursuant to the provisions of Minnesota Statutes. Funding of the necessary activities and improvements in the Development District shall be accomplished through tax increment financing in accordance with Minnesota Statutes, and through the use of industrial revenue bonds pursuantto the provisions of Chapter 474, as amended, of Minnesota Statutes (the "Municipal Industrial Development Act "). The City has designated a specific area within the corporate limits of the City as the Development District as authorized by Section 469.126 of the Development District Act which is hereby amended as outlined in this document. Within the Development District, the City has established three tax increment financing districts. Subsection 1.4. Statement of Objectives. The Council determines that the establishment of the Development District will provide the City with the ability to achieve certain public purpose goals not otherwise obtainable in the foreseeable future without City intervention in the normal development process. The public purpose goals include: restoration and improvement of the tax base and tax revenue generating capacity of the Development District; increased employment opportunities; realization of comprehensive planning goals; removal of blighted conditions; revitalization of the property withinthe Development District to create an attractive, comfortable, convenient, and efficient area for industrial, commercial, and related uses. City of Andover Development Program for Development District No. 1 1 -2 The City and Council seek to achieve the following Development Program objectives: 1. Promote and secure the prompt development ofcertainproperty in the Development District, which property is not now in productive use or in its highest and best use, in a manner consistent with the City's Comprehensive Plan and with a minimum adverse impact on the environment, and thereby promote and secure the development of other land in the City. 2. Promote and secure additional employment opportunities within the Development District and the City for residents of the City and the surrounding area, thereby improving living standards, reducing unemployment and the loss of skilled and unskilled labor and other human resources in the City. 3. Secure the increase of commercial property subject to taxation by the City, Independent School DistrictNo. 11, Anoka County, and the other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs required to be provided by them. 4. Provide for the financing and construction of public improvements in and adjacent to the Development District, necessary for the orderly and beneficial development ofthe Development District and adjacent areas of the City. 5. Promote the concentration of new desirable residential, commercial, office, and other appropriate development in the Development District so as to maintain the area in a manner compatible with its accessibility and prominence in the City. 6. Encourage local business expansion, improvement, and development, whenever possible. 7. Create a desirable and unique character within the Development District through quality land use alternatives and design quality in new and remodeled buildings. 8. Encourage and provide maximum opportunity for private redevelopment of existing areas and structures which are compatible with the Development Program. Subsection 1.5. Estimated Public Costs and Supportive Data. The estimated costs of the public improvements to be made within the Development District and financed by tax increments will be derived from the tax increment financing districts within the Development District. City of Andover Development Program for Development District No. 1 1 -3 (AS ORIGINALLY ADOPTED July 29, 1986) Tax Increment Financing District No. 1 -1 Land Acquisition $2,000,000 Relocation 1,000,000 Demolition 10,000 Improvements Including: soil correction, sewer & water, sanitary sewer, street lighting, curb and gutter 1,000,000 Removal of Hazardous Waste 1,000,000 Professional Services Estimated project costs for legal assistance, planning, design, engineering, appraisals, marketing, bond issuance costs, and other project services 1,000,000 Discount 95,000 Interest on Bonds Prior to Receipt of Tax Increment To Fully Fund Principal and Interest 1,019,281.50 Less: Interest Income Earned During the Capitalized Interest Period - Assume 6% Interest Rate 97,469.53 Total Amount of Bonds to be Sold 4,810,000 Administrative Expense 264,000 (AS MODIFIED FEBRUARY 21, 1995) The estimated costs of public improvements to be made within the Development District and financed by tax increments derived from tax increment financing districts within the Development District are modified to include the following: Public Improvements, including sewer and water trunk lines to be located north of Crosstown Boulevard and adjacent to the Andover Public Utilities Building and park property. $1,000,000 (AS MODIFIED SEPTEMBER 19, 1995) The capital and administration costs identified inthe Development Program and the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1 -1 and 1 -2 are amended to reflect the following budget increases: City of Andover Development Program for Development District No.l 1 -4 Land acquisition and site improvements $3,000,000 Public improvements and public facilities 11,400,000 Administration expense and costs of issuance 1.600.000 Total project costs and maximum principal of bonds to be issued $16,000,000 As part of the 2000 Modifications, the budget for District No. 1 -1 has been configured to match the current annual reporting requirements. The column for each budget modification contains the expenditures added to the budget. The Bond interest payments added through the 2000 Modifications is not a new expense, but a recognition of the interest related to the principal authorized in 1995. The modified budget appears in the following table. Uses of Funds Original TIF 2/95 Plan Modification 9/95 Modification 2000 Modification Total Budget Land/building acquisition 2,000,000 2,000,000 2,000,000 6,000,000 Site improvements- 1,010,000 1,000,000 2,000,000 4,010,000 preparation 0 0 0 Installation of public 1,000,000 5,000,000 0 6,000,000 utilities Parking facilities Streets and sidewalks Public park facilities Social, recreational, conference Interest reduction payments Bond principal payments Bond interest payments Loan principal payments Loan/note interest payments Administrative costs Other Relocation Discount State Auditor Fee 0 0 0 0 1,000,000 6,400,000 0 7,400,000 0 0 0 0 0 0 0 0 0 4,810,000 16,000,000 0 20,810,000 3,800,000 12,000,000 15,800,000 0 0 0 0 264,000 1,450,000 0 1,714,000 1,000,000 0 1,000,000 95,000 150,000 0 245,000 0 0 0 Total Uses of Funds 13,979,000 1,000,000 32,000,000 16,000,000 62,979,000 The amounts above include expenditures to be made outside of District No. 1 -1 and within the Development District subject to the limitations of the Tax Increment Financing Act. Supportive Data for Estimated Costs of Improvements for the Development District Under the Development Program It was necessary to make certain assumptions regarding income, costs and timing of the tax increment financing district. These assumptions are based on discussions with City and County staff and the developers. City of Andover Development Program for Development District No. 1 1 -5 Item Basis for Estimate Acquisition, Improvements, Estimated by City Demolition, Relocation Professional Services Estimated by City Attorney, Bond Counsel and Financial Consultant (AS MODIFIED SEPTEMBER 2, 1986) Tax Increment Financing District No. 1 -2 Land Acquisition* $450,000 Public Improvements 450,000 Credit Support Expense (e.g., Letter of Credit Fees) 4,404.75 Signal Light 65,000 Professional Services Estimated project costs for legal assistance, planning, design engineering, appraisals, marketing, bond issuance costs, and other project services 45,375 Discount 20,500 Interest on Bonds Prior to Receipt of Tax Increment to Fully Fund Principal and Interest 86,322.50 Less: Interest Income Earned During the Capitalized Interest Period - Assumes 6% Interest Rate (4,500.23) Total Amount of Bonds to be Sold $1,300,000 Bonds Sold at this Time 1,025,000 Administrative Expense 91,500 * As part of the developer's responsibility, he will assure thatthe following public improvements are included in the site preparation: Grading, Fill, Drainage and Soil Tests; Traffic Engineering; Curbs and Gutters; Basic Landscaping; Street Lighting; Parking Lot Lighting; Parking Lot; Directional Signal; Fence; Sidewalks; Public Toilets; Fire Protection; Exterior Building Lighting. SUPPORTIVE DATA FOR ESTIMATED COSTS OF IMPROVEMENTS FOR THE DEVELOPMENT DISTRICT UNDER THE DEVELOPMENT PROGRAM It was necessary to make certain assumptions regarding income, costs and timing of the tax increment financing district. These assumptions are based on discussions with City and County staff and the developers. City of Andover Development Program for Development District No. 1 1 -6 ITEM BASIS FOR ESTIMATE ACQUISITION, IMPROVEMENTS, DEMOLITION, RELOCATION Estimated by Developer PROFESSIONAL SERVICES Estimated by City Attorney, Bond Counsel and Financial Consultant (AS MODIFIED NOVEMBER 17, 2009) The Development District budget equals all the budgets of all tax increment financing plans adopted and any future tax increment financing plans adopted. Subsection 1.6. Environmental Control. The proposed economic development in the Development District does not present significant environmental concerns. All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental standards. Subsection 1.7. Proposed Reuse of Property. The public improvements needed to bring about the new development include acquisition of land, site improvements, and general improvements. The Development Program 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. It shall be the intent of the City to negotiate the acquisition of property whenever necessary. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any land sale contract to which the City is a part. Subsection 1.8. Administration and Maintenance of the Development District. Maintenance and operation of the public improvements will be the responsibility of the Administrator of the City who shall serve as Administrator of the Development District. The powers, duties and responsibilities of the Administrator are spelled out in the Administrative Guide for the Administration ofthe Development Program for the Development District, attached hereto as Appendix A. Each year the Administrator will submit to the Council the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of Section 469.131 of the Development District Act; provided, however, that such powers may only be exercised at the direction of the Council. No action taken by the Administrator pursuant to the above - mentioned powers shall be effective without authorization by the Council. Subsection 1.9. Rehabilitation. Owners of properties within the Development District will be encouraged 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 the Development District from the City may be required to rehabilitate their properties as a condition of sale of land. The City will provide such rehabilitation assistance as may be available from federal, state or local sources. Subsection 1.10. Relocation. The City accepts its responsibility for providing for relocation pursuant to Section 469.133 of the Development District Act. City of Andover Development Program for Development District No. 1 1 -7 Subsection 1. 11. Boundaries of the Development District. A. Boundaries of the Development District as established July 29, 1985. PIN 34 32 24 44 0006 PIN 34 32 24 44 0005 PIN 34 32 24 44 0002 PIN 35 32 24 210001 PIN 35 32 24 12 0001 PIN 34 32 24 43 0004 PIN 34 32 24 410005 PIN 34 32 24 410011 PIN 34 32 24 410006 PIN 34 32 24 33 0001 PIN 34 32 24 42 0004 PIN 34 32 24 42 0002 PIN 34 32 24 42 0009 PIN 34 32 24 24 0001 PIR 34 32 24 13 0001 PIN 34 32 24 14 0001 PIN 34 32 24 32 0001 PIN 34 32 24 32 0004 PIN 34 32 24 310006 PIN 34 32 24 310008 PIN 34 32 24 310010 PIN 26 32 24 32 0003 PIN 33 32 24 43 0033 PIN 33 32 24 44 0002 PIN 34 32 24 44 0008 PIN 34 32 24 44 0004 PIN 34 32 24 44 0001 PIN 35 32 24 23 0001 PIN 34 32 24 43 0001 PIN 34 32 24 410001 PIN 34 32 24 410004 PIN 34 32 24 410008 PIN 34 32 24 310003 PIR 34 32 24 42 0006 PIN 34 32 24 42 0001 PIN 34 32 24 42 0007 PIN 34 32 24 42 0010 PIN 34 32 24 24 0003 PIN 34 32 24 13 0002 PIN 34 32 24 14 0002 PIR 34 32 24 32 0002 PIN 34 32 24 310004 PIN 34 32 24 310013 PIN 34 32 24 310009 PIN 35 32 24 110001 PIN 26 32 24 32 0004 PIN 33 32 24 410001 PIN 34 32 24 23 0002 PIN 34 34 24 44 0007 PIN 34 32 24 44 0003 PIN 35 32 24 22 0001 PIN 35 32 24 24 0001 PIN 34 32 24 43 0002 PIN 34 32 24 410002 PIN 34 32 24 410010 PIN 34 32 24 410007 PIN 34 32 24 34 0001 PIN 34 32 24 42 0005 PIN 34 32 24 42 0003 PIN 34 32 24 42 0008 PIN 34 32 24 24 0003 PIN 34 32 24 12 0001 PIN 34 32 24 110001 PIN 34 32 24 14 0003 PIN 34 32 24 32 0003 PIN 34 32 24 310005 PIN 34 32 24 310007 PIN 34 32 24 310011 PIN 35 32 24 14 0002 PIN 33 32 24 42 0001 PIN 33 32 24 44 0001 PIN 34 32 24 23 0003 B. Boundaries of the Development District as modified September 2. 1985. All ofBlocks 1, 2, 3, and 4, ANDOVER COMMUNITY SHOPPING CENTER, according to the plat on file in the office of the County Recorder, Anoka County, Minnesota EXCEPT Lot 1, Block 2, and also EXCEPT that part of Lot 1, Block 3 described as follows: Commencing at the northeast corner of said Lot 1, Block 3; thence South, assumed bearing, along the east line thereof 196.00 feet to the point of beginning of the land to be described; thence South 254.46 feet; thence South 51 degrees 25 minutes 23 seconds West 129.99 feet; thence North 89 degrees 49 minutes 12 seconds West 166.00 feet to a point in the west line of said Lot 1; thence North 00 degrees 10 minutes 48 seconds East, along said west line, a distance of 335.00 feet; thence East 266.57 feet to the point of beginning. C. Boundaries of the Development District as modified September 15,1987. PIN 34 32 24 32 0004 D. Boundaries of the Development District as modified February 21, 1995. The boundaries of the Development District are expanded to include the area designated on the attached map labeled Exhibit I -D. City of Andover Development Program for Development District No.1 1 -8 Subsection 1. 12. Parcels to be Acquired or Which may be Acquired in Whole or in Part Within the Development District. (AS ORIGINALLY ADOPTED ON JULY 29, 1986) PIN 34 32 24 42 0004 PIN 34 32 24 42 0002 PIN 34 32 24 42 0009 PIN 34 32 24 14 0001 PIN 34 32 24 310006 PIN 34 32 24 310008 PIN 34 32 24 310010 PIN 34 32 24 310009 Tax Increment Financing District No. 1 -1 PIN 34 32 24 310003 PIN 34 32 24 42 0006 PIN 34 32 24 42 0001 PIN 34 32 24 42 0007 PIN 34 32 24 42 0010 PIN 34 32 24 32 0002 PIN 34 32 24 310004 PIN 34 32 24 42 0005 PIN 34 32 24 42 0008 PIN 34 32 24 32 0003 PIN 34 32 24 310005 PIN 34 32 24 310007 PIN 34 32 24 310011 PIN 34 32 24 310013 (AS MODIFIED ON SEPTEMBER 2, 1986) Tax Increment Financing District No. 1 -2 Lot 2, Block 3, Andover Community Shopping Center (AS MODIFIED FEBRUARY 21, 1995) This Subsection is amended to include all parcels as illustrated on Exhibit I -D. (AS MODIFIED SEPTEMBER 19, 1995) In addition, the City intends to acquire the following property: 34- 32 -24 -31 -0012 34- 32 -24 -42 -0006 34- 32 -24 -42 -0005 34- 32 -24 -32 -0006 34- 32 -24 -31 -0018 34- 32 -24 -31 -0016 34- 32 -24 -42 -0002 34- 32 -24 -42 -0009 34- 32 -24 -31 -0022 34- 32 -24 -42 -0001 34- 32 -24 -42 -0010 34- 32 -24 -31 -0014 34- 32 -24 -31 -0015 34- 32 -24 -42 -0003 34- 32 -24 -14 -0001 34- 32 -24 -31 -0003 34- 32 -24 -42 -0004 34- 32 -24 -32 -0005 34- 32 -24 -31 -0017 34- 32 -24 -31 -0008 34- 32 -24 -42 -0007 34- 32 -24 -42 -0008 The City reserves the right to acquire any other property located within Development District No. 1. (AS MODIFIED JUNE 7, 2011) In addition the City may acquire the property found in Appendix B, generally an area in the southwest portion of the City bounded by 149"' Avenue on the north, Hanson Boulevard on the east and 7`" Avenue on the west. The City reserves the right to acquire any other property located within Development District No. 1. City of Andover Development Program for Development District No. 1 1 -9 SECTION II. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1A Subsection 2.1. Statement of Objectives. See Section I, Development Program for the Development District, Subsection 1.4, Statement of Objectives. (AS MODIFIED NOVEMBER 17, 2009) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 is being modified in order to clarify the budget and statutory duration. (AS MODIFIED JUNE 7, 2011) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 is being modified to add parcels for acquisition and to clarify the budgets. Subsection 2.2. Development Program. See Section I, Development Program for the Development District, Subsections 1.2 through 1.12. Subsection 2.3. Parcels to be Included in Tax Increment Financing District No.1-1. The following parcels located in the City of Andover, County of Anoka, State of Minnesota: PIN 34 32 24 33 0001 PIN 34 32 24 42 0004 PIN 34 32 24 42 0002 PIN 34 32 24 42 0009 PIN 34 32 24 24 0001 PIN 34 32 24 14 0001 PIN 34 32 24 310006 PIN 34 32 24 310008 PIN 34 32 24 310010 PIN 33 32 24 43 0033 PIN 33 32 24 44 0002 PIN 34 32 24 310003 PIN 34 32 24 42 0006 PIN 34 32 24 42 0001 PIN 34 32 24 310015 PIN 34 32 24 42 0007 PIN 34 32 24 42 0010 PIN 34 32 24 32 0005 PIN 34 32 24 310004 PIN 34 32 24 310016 PIN 34 32 24 310017 PIN 34 32 24 310009 PIN 33 32 24 410001 PIN 34 32 24 23 0002 PIN 34 32 24 34 0001 PIN 34 32 24 42 0005 PIN 34 32 24 42 0008 PIN 34 32 24 32 0003 PIN 34 32 24 310005 PIN 34 32 24 310007 PIN 34 32 24 310011 PIN 33 32 24 42 0001 PIN 33 32 24 44 0001 PIN 34 32 24 23 0003 PIN 34 32 24 42 0003 PIN 34 32 24 410001 PIN 34 32 24 410002 PIN 34 32 24 410003 PIN 34 32 24 410004 PIN 34 32 24 410006 PIN 34 32 24 24 0002 PIN 34 32 24 310014 PIN 34 32 24 310012 (AS MODIFIED ON SEPTEMBER 15, 1987) Adding PIN 34 32 24 32 0004 FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1-1 CAN BE OBTAINED FROM THE OFFICE OF THE CLERK - TREASURER. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -1 Subsection 2.4. Parcels in Acquisition. The City may acquire and reconvey any of the parcels identified in Section I, Subsection 1.12 of the Development Program. As the City acquires said parcels, the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 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 City may acquire property by gift, dedication, 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 acquisition and related costs. (AS MODIFIED JUNE 7, 2011) In addition the City may acquire the property found in Appendix B, generally an area in the southwest portion of the City bounded by 149`h Avenue on the north, Hanson Boulevard on the east and Vh Avenue on the west. The City reserves the right to acquire any other property located within Development District No. 1. Subsection 2.5. Development Activity in the Development District for which Contracts have been Signed. The following contracts have been entered into by the City and the persons named below: [Contracts entered into by the City will be inserted in this Subsection as they are consummated.] (AS MODIFIED NOVEMBER 17, 2009) Contracts for development that have been entered into to date include: 1. Andover Limited Partnership, dated September 2, 1986. Under the contract, the developer was required to provide for the construction of 105,000 square foot shopping mall. The project is completed. Subsection 2.6. Other Specific Development Expected to Occur within the Development District. [As specified development is expected to occur, it will be inserted in this Subsection.] Subsection 2.7. Estimated Cost of Project. See Subsection 1.5 of the Development Program for estimated costs associated pith the Development District. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -2 (AS MODIFIED NOVEMBER 17, 2009) The EDA and the City have studied the feasibility of the development and redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment ofthe District, this TIF Plan authorizes the use of tax increment financing to pay for costs of certain eligible expenses. The estimate and clarification of public costs and uses of funds with the District is outlined in the table below. USES OF FUNDS TOTAL Land/Building (including relocation) $16,790,000 Site Improvements $6,010,000 Public Utilities $3,000,000 Streets and Sidewalks $10,400,000 Administration $L800,000 PROJECT COST TOTAL $38,000,000 Interest i4&Q0 000 PROJECT AND INTEREST COSTS TOTAL $42,000,000 The above budget represents the total costs being authorized, which includes all prior budgeted amounts, and is organized according to the Office of the State Auditor (OSA) reporting forms. It is estimated that the costs of improvements, including administrative expenses which will be paid or financed with tax increments will equal $42,000,000 total project costs as is presented in the budget above. The above budget does not include non tax increment sources of revenues which have historically been included in the financial reporting for the District. Estimated capital and administrative costs in the table on the previous page are subject to change among categories by modification of the TIF Plan without the hearings and notice required for the initial TIF Plan, so long as the total capital and administrative costs do not exceed the total listed above. Subsection 2.8. Estimated Amount of Bonded Indebtedness. It is anticipated that $4,810,000 of bonded indebtedness will be incurred with respect to this portion ofthe Development District. The September 1995 Plan Modifications added $16,000,000 to this amount creating a maximum bonded indebtedness of $20,810,000. (AS MODIFIED NOVEMBER 17, 2009) The City may issue bonds, as defined in the Tax Increment Financing Act, secured in whole or in part with tax increments from Tax Increment Financing District No. 1 -1 in the maximum principal amount of $12,000,000. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or to reimburse the developer on a "pay -as- you -go" basis for eligible costs paid for by a developer. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -3 Subsection 2.9. Sources of Revenue. Public improvement costs, acquisition and other costs outlined in the Estimated Cost of Project (Subsection 2.7 above) will be financed through the annual collection of tax increments as described below. (AS MODIFIED NOVEMBER 17, 2009) The costs outlined in the Estimated Cost of Projects will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. Additional indebtedness may be required to finance other authorized activities. The total principal amount of notes to be issued, including a general obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing, will not exceed $12,000,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the ac- tivities to be undertaken pursuant to the TIF Plan through loans from funds of the City or to reimburse the developer on a "pay -as- you -go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the following table: SOURCES OF FUNDS TOTAL Tax Increment $42,000,000 (AS MODIFIED NNE 7, 2011) The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District may be financed through the combination of pay -as- you -go notes, interfund loans and bonds. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $39,000,000 Interest $3.000.000 Total $42,000,000 LLJ Subsection 2.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment. The most recent assessed value (the original assessed value) of Tax Increment Financing District No. 1 -1 is estimated to be $80,560. City of Andover Tae Increment Financing Plan for Tax Increment Financing District No. I- 1 2 -4 The estimated captured assessed value of Tax Increment Financing District No. 1 -1 on January 1, 1989 is estimated to be $6,836,840. The 1987 original assessed value of PIN 34 32 24 32 0004, upon its inclusion into Tax Increment Financing District No. 1 -1 as modified September 15, 1987, is $10,512. The future estimated value of this parcel upon completion of the proposed improvement is estimated to be $2,130,048. The captured assessed value is estimated to be $2,119,536. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to M.S., Section 469.177, Subds. I and 2, the County Auditor shall certify in each year the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court- ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 1, will annually approximate tax increment revenues as shown in the table below. The Project Tax Capacity (PTC) listed is the actual values used for taxes payable in 2009. Project Estimated Tax Capacity upon Completion (PTC) $2,044,050 Original Estimated Net Tax Capacity (ONTC) $139,601 Estimated Captured Tax Capacity (CTC) $1,904,449 Original Local Tax Rate 0.85767 Pay 2009 Estimated Annual Tax Increment (CTC x Local Tax Rate) $1,633,389 Percent Retained by the EDA 100% City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -5 (AS MODIFIED NNE 79 2011) Project Estimated Tax Capacity upon Completion (PTC) $1,784,718 Original Estimated Net Tax Capacity (ONTC) $152,140 Estimated Captured Tax Capacity (CTC) $1,632,578 Original Local Tax Rate 1.06401 Pay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate) $19737,079 Percent Retained by the EDA 100% Subsection 2.11. Mill Rate. The mill rate is 102.021. Subsection 2.12. Tax Increment. Tax increment has been at approximately $697,501 assuming a static mill rate and a increased by zero percent (0 %) compounded annually. Subsection 2.13. Capitalized Interest. Capitalized interest will cover interest payments on the Bonds prior to receipt of tax increment to fully fund the principal of and interest on the Bonds. Subsection 2.14. Investment Interest Rate. Investment Interest is assumed at six percent (6 %). This is the estimated rate at which unspent but obligated funds will earn interest as well as any surplus tax increment funds within any given year. This rate is contingent upon rates paid on savings and upon arbitrage considerations. Subsection 2.15. Tvpe of Tax Increment Financing District. Tax Increment Financing District No. 1 -1 is, pursuant to Minnesota Statutes Section 273.73, Subdivision 10 a redevelopment district as defined below: (2) 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other improvements and 20 percent of the buildings are structurally substandard and an additional 30 percent of the buildings are found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well being of the community. Subsection 2.16. Duration of Tax Increment Financing District No. 1 -1. The duration of Tax Increment Financing District No. 1 -1 is expected to be twenty-five (25) years from the receipt of the first tax increment. The date of receipt of the first tax increment will be July, 1988. The first tax increment was received by the City was 1989. The maximum duration of District No. 1 -1 is 2014. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of 26 years of tax increment). The date of receipt by the City of the first tax increment was 1987. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -6 terminate after 2012, or when the TIF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2.17. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing Jurisdictions assess construction would have occurred without the creation of Tax Increment Financing District No. 1 -1. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing Jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District No. 1 -1 would be as follows if the "but for" test was not met: IMPACT ON TAX BASE IMPACT ON MILL RATE Current Original Future Captured District % Entity Tax Base Assessed Value Assessed Value Assessed Value of Enti Andover 56,325,201 80,560 6,917,400 6,836,840 12.14% Anoka County 1,202,403,543 80,560 6,917,400 6,836,840 .5% I.S.D. #11 595,908,940 80,560 6,917,400 6,836,840 1.15% IMPACT ON MILL RATE The inclusion of PIN 34 32 24 32 0004 into Tax Increment District No. 1 -1 will have minimal Impact on the other taxing jurisdictions. See Subsection 2.10 above. The 2000 modifications are not the result of a pending development project. Therefore, it is difficult to accurately estimate the additional tax capacity that may be captured by District No. 1 -1 as a result of the modifications. The following table illustrates the estimated fiscal and economic implications from $10,000,000 in additional estimated market value. The actual implications will vary according to the value and the number of development projects. Taxing Entity Anoka County I.S.D. No. 11 City of Andover 1999/2000 Total Net Tax Capacity 166,478,361 107,286,469 14,722,272 Estimated Captured Tax Capacity 338,500 338,500 338,500 Percent of CTC to Entity Total 0.20% 0.32% 2.30% City of Andover Tae Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -7 Current Potential Entity ERt i-ty Mill Rate Tax Increment Andover 14.485 $99,032 Anoka County 28.738 196,477 I.S.D. #11 55.740 381,085 Other 3.058 20.907 TOTAL 102.021 $697,501 The inclusion of PIN 34 32 24 32 0004 into Tax Increment District No. 1 -1 will have minimal Impact on the other taxing jurisdictions. See Subsection 2.10 above. The 2000 modifications are not the result of a pending development project. Therefore, it is difficult to accurately estimate the additional tax capacity that may be captured by District No. 1 -1 as a result of the modifications. The following table illustrates the estimated fiscal and economic implications from $10,000,000 in additional estimated market value. The actual implications will vary according to the value and the number of development projects. Taxing Entity Anoka County I.S.D. No. 11 City of Andover 1999/2000 Total Net Tax Capacity 166,478,361 107,286,469 14,722,272 Estimated Captured Tax Capacity 338,500 338,500 338,500 Percent of CTC to Entity Total 0.20% 0.32% 2.30% City of Andover Tae Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -7 Taxing Entity 1999/2000 Tax Percent of Total Estimated Potential Percent of CTC Extension Rate Upon Completion Captured Tax Taxes 1,904,449 0.6082% City of Andover 28,032,781 Capacity 6.7937% Anoka County 30.8610% 28.53% 338,500 104,464 I.S.D. No. 11 51.7920% 47.88% 338,500 175,316 City of Andover 22.7350% 21.02% 338,500 76,958 Other 2.7850% 2.57% 338,500 9,427 61,799 108.1730% 100.00% 100.00% 366,166 (AS MODIFIED NOVEMBER 17, 2009) IMPACT ON TAX BASE Pay 2009 Estimated Captured Pay 2011 Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Enti ty Total Anoka County 313,126,954 1,904,449 0.6082% City of Andover 28,032,781 1,904,449 6.7937% Anoka - Hennepin ISD # 11 26,040,929 1,904,449 7.3133% The estimates listed above display the captured tax capacity as of 2009. The tax rate used for calculations is the actual Pay 2009 rate. The total net capacity for the entities listed above are based on actual Pay 2009 figures. (AS MODIFIED JUNE 7, 2011) IMPACT ON TAX BASE IMPACT ON TAX RATES Pay 2011 Estimated Captured Total Net Tax Capacity (CTC) Pay 2009 Percent Upon Completion Potential Anoka County 264,4299170 Extension Rates of Total CTC Taxes Anoka County 0.320780 37.40% 1,904,449 610,909 City of Andover 0.321810 37.52% 1,904,449 612,871 Anoka - Hennepin ISD # 11 0.182630 21.29% 1,904,449 347,810 Other 0.032450 3.78% 1,904,449 61,799 Total 0.857670 100.00% 1,633,389 The estimates listed above display the captured tax capacity as of 2009. The tax rate used for calculations is the actual Pay 2009 rate. The total net capacity for the entities listed above are based on actual Pay 2009 figures. (AS MODIFIED JUNE 7, 2011) IMPACT ON TAX BASE Pay 2011 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total Anoka County 264,4299170 1,632,578 0.6174% City of Andover 22,9179073 1,632,578 7.1239% Anoka - Hennepin ISD # 11 21,321,775 1,632,578 7.6569% City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -8 The estimates listed above display the captured tax capacity as of 2011. The tax rate used for calculations is the actual Pay 2011 rate. The total net capacity for the entities listed above are based on actual Pay 2011 figures. Subsection 2.18. Tax Increment Financing Account for Tax Increment Financing District No. 1 -1. The tax increments received with respect to payment of principal and interest for bonds issued for improvements made within Tax Increment Financing District No. 1 -1 will be segregated by the City in a special account or accounts (the "Tax Increment Account ") 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. Subsection 2.19. Modification of Tax Increment Financing District No. 1 -1 and/or Tax Increment Financin Plan. lan. As of July 29, 1986, no modifications to Tax Increment Financing District No. l -1 or the Tax Increment Financing Plan therefore have been made. (AS MODIFIED SEPTEMBER 2, 1986) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. l is hereby modified to reflect an enlargement of the geographic area and increased project costs of Development District No. 1 as outlined in Section I, Subsections 1.11 and 1.5, respectively, of the Development Program and is redesignated as Tax Increment Financing District No. 1 -1. (AS MODIFIED SEPTEMBER 15, 1987) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. 1 -1 is hereby modified to reflect an enlargement of the geographic area of Tax Increment Financing District No. 1 -1 and Development District No.I as outlined in Section I, Subsection 1.11 of the Development Program. (AS MODIFIED FEBRUARY 21, 1995) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. 1 -1 is hereby modified to reflect an enlargement of the geographic area and increased project costs within Development District No. 1 as outlined in Section I, Subsections 1.5., 1.11., and 1.12. City of Andover Tax Increment Financing Plan for Tae Increment Financing District No. 1-1 2 -9 IMPACT ON TAX RATES Pay 2011 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.412840 38.80% 1,632,578 673,994 City of Andover 0.384090 36.10% 1,6329578 627,057 Anoka - Hennepin ISD # 11 0.239990 22.56% 11632,578 391,802 Other 0.027090 2.55% 1.632.578 44.227 Total 1.064010 100.00% 1,737,079 The estimates listed above display the captured tax capacity as of 2011. The tax rate used for calculations is the actual Pay 2011 rate. The total net capacity for the entities listed above are based on actual Pay 2011 figures. Subsection 2.18. Tax Increment Financing Account for Tax Increment Financing District No. 1 -1. The tax increments received with respect to payment of principal and interest for bonds issued for improvements made within Tax Increment Financing District No. 1 -1 will be segregated by the City in a special account or accounts (the "Tax Increment Account ") 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. Subsection 2.19. Modification of Tax Increment Financing District No. 1 -1 and/or Tax Increment Financin Plan. lan. As of July 29, 1986, no modifications to Tax Increment Financing District No. l -1 or the Tax Increment Financing Plan therefore have been made. (AS MODIFIED SEPTEMBER 2, 1986) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. l is hereby modified to reflect an enlargement of the geographic area and increased project costs of Development District No. 1 as outlined in Section I, Subsections 1.11 and 1.5, respectively, of the Development Program and is redesignated as Tax Increment Financing District No. 1 -1. (AS MODIFIED SEPTEMBER 15, 1987) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. 1 -1 is hereby modified to reflect an enlargement of the geographic area of Tax Increment Financing District No. 1 -1 and Development District No.I as outlined in Section I, Subsection 1.11 of the Development Program. (AS MODIFIED FEBRUARY 21, 1995) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. 1 -1 is hereby modified to reflect an enlargement of the geographic area and increased project costs within Development District No. 1 as outlined in Section I, Subsections 1.5., 1.11., and 1.12. City of Andover Tax Increment Financing Plan for Tae Increment Financing District No. 1-1 2 -9 (AS MODIFIED JUNE 20, 2000) The Development Program for Development District No. 1 and the Tax Increment Financing Plan for Tax Increment Financing District No. l -1 are modified to authorized increased project costs (Subsections 1.5 and 2.7), increase the maximum bonded indebtedness (Subsection 2.8) and clarify the parcels that may be acquired (Subsection 2.4). The 2000 Modifications make technical and clarifying changes in Subsections 1. 1, 1.3, 1.8, 1.10, 1.12, 2.9, 2.16, and 2.17. These modifications do not enlarge the geographic area of the Development District or the Tax Increment Financing District. (AS MODIFIED NOVEMBER 17, 2009) Subsection 2.20. Administrative Expenses. In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176 Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -1 2 -10 (AS MODIFIED NOVEMBER 17, 2009) Subsection 2.21. Use of Tax Increment. The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following 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 the Development District No. 1 pursuant to the M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of the Development District No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and /or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the EDA or City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Anoka County to the City for the Tax Increment Fund of said District. (AS MODIFIED NOVEMBER 17, 2009) Subsection 2.22. Excess Increments. Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Development District No. 1 or the District. City of Andover Tax Increment Financing Plan for Tar Increment Financing District No. 1-1 2 -11 SECTION III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -2 Subsection 3.1. Statement of Objectives. See Section I, Development Program for the Development District, Subsectionl.4, Statement of Objectives. (AS MODIFIED NOVEMBER 17, 2009) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tax Increment Financing Plan for TIF 1 -2 is being modified in order to clarify the budget and statutory duration. (AS MODIFIED JUNE 7, 2011) The City desires to continue redevelopment and development of blighted and underdeveloped property in the City. The Tag Increment Financing Plan for Tax Increment Financing District No. 1-1 is being modified to add parcels for acquisition and to clarify the budget. Subsection 3.2. Development Prop-ram. See Section I, Development Program for the Development District, Subsections 1.2 through 1.12. Subsection 3.3. Parcels to be Included in Tax Increment Financing District No. 1 -2. The following parcels located in the City of Andover, County of Anoka, State of Minnesota: All of Blocks 1, 2, 3, and 4, ANDOVER COMMUNITY SHOPPING CENTER, according to the plat on file in the office of the County Recorder, Anoka County, Minnesota EXCEPT Lot 1, Block 2, and also EXCEPT that part of Lot 1, Block 3 described as follows: Commencing at the northeast corner of said Lot 1, Block 3; thence South, assumed bearing, along the east line thereof 196,00 feet to the point of beginning of the land to be described; thence South 254.46 feet; thence South 51 degrees 25 minutes 23 seconds West 129.99 feet; thence North 89 degrees 49 minutes 12 seconds West 166.00 feet to a point in the west line of said Lot 1; thence North 00 degrees 10 minutes 48 seconds East, along said west line, a distance of 335.00 feet; thence East 266.57 feet to the point of beginning. FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1 -2 CAN BE OBTAINED FROM THE OFFICE OF THE CLERK - TREASURER. Subsection 3.4. Parcels in Acquisition. The City may acquire and reconvey the parcels identified in Section I, Subsection 1.12 of the Development Program as originally adopted July 29, 1986. As the City acquires said parcels, the Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 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 City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the tax increment financing plan; and City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -1 (2) Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. (AS MODIFIED JUNE 7, 2011) In addition the City may acquire the property found in Appendix B, generally an area in the southwest portion of the City bounded by 149' Avenue on the north, Hanson Boulevard on the east and 7"' Avenue on the west. The City reserves the right to acquire any other property located within Development District No. 1. Subsection 3.5. Development Activity In the Development District for which Contracts have been Signed. The following contracts have been entered into by the City and the persons named below: [Contracts entered into by the City will be inserted in this Subsection as they are consummated.] (AS MODIFIED NOVEMBER 17, 2009) Contracts for development that have been entered into to date include: 1. Andover Limited Partnership, dated September 2, 1986. Under the contract, the developer was required to provide for the construction of 105,000 square foot shopping mall. The project is completed. Subsection 3.6. Other Specific Development Expected to Occur within the Development District. [As specified development is expected to occur, it will be inserted in this Subsection.] Subsection 3.7. Estimated Cost of Project. See Subsection 1.5 of the Development Program for estimated costs associated with the Development District. (AS MODIFIED NOVEMBER 17, 2009) The EDA and the City have studied the feasibility of the development and redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment ofthe District, this TIF Plan authorizes the use of tax increment financing to pay for costs of certain eligible expenses. The estimate and clarification of public costs and uses of funds with the District is outlined in the following table. City of Andover Tae Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -2 USES OF FUNDS TOTAL Land/Building (including relocation) $7,000,000 Site Improvements $1,000,000 Public Utilities $1,000,000 Street Improvements $8,000,000 Administratio $800,00 0 PROJECT COST TOTAL $17,800,000 Interest $3.000.000 PROJECT AND INTEREST COSTS TOTAL $20,800,000 The above budget represents the total costs being authorized, which includes all prior budgeted amounts, and is organized according to the Office of the State Auditor (OSA) reporting forms. It is estimated that the costs of improvements, including administrative expenses which will be paid or financed with tax increments will equal $20,800,000 total project costs as is presented in the budget above. The above budget does not include non tax increment sources of revenues which have historically been included in the financial reporting for the District. Estimated capital and administrative costs in the table above are subject to change among categories by modification of the TIF Plan without the hearings and notice required for the initial TIF Plan, so long as the total capital and administrative costs do not exceed the total listed above. Subsection 3.8. Estimated amount of Bonded Indebtedness. It is anticipated that $1,300,000 of bonded indebtedness will be incurred with respect to this portion of the Development District. At the present time $1,025,000 of bonded indebtedness will be incurred. (AS MODIFIED NOVEMBER 17, 2009) The City may issue bonds, as defined in the Tax Increment Financing Act, secured in whole or in part with tax increments from Tax Increment Financing District No. 1 -2 in the maximum principal amount of $9,300,000. Subsection 3.9. Sources of Revenue. Public improvement costs, acquisition and other costs outlined in the Estimated Cost of Project (Subsection 3.7 above) will be financed through the annual collection of tax increments as described below. (AS MODIFIED NOVEMBER 17, 2009) The costs outlined in the Estimated Cost of Projects will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. Additional indebtedness may be required to finance other authorized activities. The total principal amount of notes to be issued, including a general obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing, will not exceed $9,300,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -3 This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the ac- tivities to be undertaken pursuant to the TIF Plan through loans from funds of the City or to reimburse the developer on a "pay -as- you -go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the following tables. SOURCES OF FUNDS TOTAL Tax Increment $20,800,000 (AS MODIFIED JUNE 7, 2011) The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District may be financed through the combination of pay -as- you -go notes, interfund loans and bonds. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $20,000,000 Interest $800,000 Total $20,800,000 Subsection 3.10. Estimated Original and Captured Assessed Values and Estimate of Tax Increment. The most recent assessed value (the original assessed value) of Tax Increment Financing District No. 1 -2 is estimated to be $66,720. The estimated captured assessed value of Tax Increment Financing District No. 1 -2 on January 1, 1988 is estimated to be $1,439,160. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to M.S., Section 469.177, Subds. I and 2, the County Auditor shall certify in each year the amount by which the original value has increased or decreased as a result of 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court- ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -4 In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 1, will annually approximate tax increment revenues as shown in the table below. The Project Tax Capacity (PTC) listed is the actual values used for taxes payable in 2009. Project Estimated Tax Capacity upon Completion (PTC) $258,368 Original Estimated Net Tax Capacity (ONTC) $4,542 Estimated Captured Tax Capacity (CTC) $253,826 Original Local Tax Rate 0.85613 Pay 2009 Estimated Annual Tax Increment (CTC x Local Tax Rate) $217,308 Percent Retained by the EDA 100% (AS MODIFIED JUNE 7, 2011) Project Estimated Tax Capacity upon Completion (PTC) $234,858 Original Estimated Net Tax Capacity (ONTC) $49542 Estimated Captured Tag Capacity (CTC) $230,316 Original Local Tax Rate 1.06401 Pay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate) $245,059 Percent Retained by the EDA 100% Subsection 3.11. Mill Rate. The mill rate is 102.021. Subsection 3.12. Tax Increment. Tax increment has been at approximately $146,825 assuming a static mill rate and a increased by zero percent (0 %) compounded annually. Subsection 3.13. Capitalized Interest. Capitalized interest will cover interest payments on the Bonds prior to receipt of tax increment to fully fund the principal of and interest on the Bonds. Subsection 3.14. Investment Interest Rate. Investment interest is assumed at six percent (6 %). This is the estimated rate at which unspent but obligated funds will earn interest as well as any surplus increment funds within any given year, This rate is contingent upon rates paid on savings and upon arbitrage considerations. Subsection 3.15. Type of Tax Increment Financing District. Tax Increment Financing District No. 1 -2 is, pursuant to Minnesota Statutes Section 273.73, Subdivision 10 a redevelopment district as defined below: City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -5 (3) "Less than 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other improvements, but due to unusual terrain or soil deficiencies requiring substantial filling, grading or other physical preparation for use at least 80 percent of the total acreage of such land has a fair market value upon inclusion in the redevelopment district which, when added to the estimated cost of preparing the land for development, excluding costs directly related to roads as defined in Section 150.01 and local improvements as described in Section 429.021, subd. 1, clauses 1 to 7, 11 and 12, and Section 430.0 1, if any, exceeds its anticipated fair market value after completion of said preparation; provided that no parcel shall be included within a redevelopment district pursuant to this paragraph (3) unless the authority has concluded an agreement or agreements for the development of at least 50 percent of the acreage having the unusual soil or terrain deficiencies, which agreement provides recourse for the authority should the development not be completed. Subsection 3.16. Duration of Tax Increment Financing District No. 1 -2. The duration of Tax Increment Financing District No. 1 -2 is expected to be twenty-five (25) years from the receipt of the first tax increment. The date of receipt of the first tax increment will be July, 1988. (AS MODIFIED NOVEMBER 17, 2009) Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of 26 years of tax increment). The date of receipt by the City of the first tax increment was 1989. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2014, or when the TIF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date Subsection 3.17. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No. 1 -2. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing Jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District No. 1 -2 would be as follows if the "but for" test was not met: Entity Andover Anoka County I.S.D. #11 IMPACT ON MILL RATE Captured IMPACT ON TAX BASE Assessed Value Original Future Tax Base Assessed Value Assessed Value 56,325,201 66,720 1,505,880 1,202,403,543 66,720 1,505,880 595,908,940 66,720 1,505,880 IMPACT ON MILL RATE Captured District % Assessed Value of Entily 1,439,160 2.56% 1,439,160 .12% 1,439,160 .24% City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -6 Current Potential Entity Entity- Mill Rate Tax Increment Andover 14.485 $20,846 Anoka County 28.738 41,359 I.S.D. #11 55.740 80,219 Other 3.058 4,401 TOTAL 102.021 $146,825 City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -6 (AS MODIFIED NOVEMBER 17, 2009) IMPACT ON TAX BASE Pay 2009 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entijy Total Anoka County 313,126,954 253,826 0.0811% City of Andover 28,032,781 253,826 0.9055% Anoka - Hennepin ISD # 11 16,094,654 253,826 1.5771% The estimates listed above display the captured tax capacity as of 2009. The tax rate used for calculations is the actual Pay 2009 rate. The total net capacity for the entities listed above are based on actual Pay 2009 figures. (AS MODIFIED JUNE 7, 2011) IMPACT ON TAX BASE Pay 2011 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entft Total Anoka County 264,429,170 230,316 0.0871% City of Andover 22,917,073 230,316 1.0050% Anoka - Hennepin ISD # 11 21,321,775 230,316 1.0802% City of Andover - Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -7 IMPACT ON TAX RATES Pay 2009 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.320780 37.47% 253,826 81,422 City of Andover 0.324840 37.94% 253,826 82,453 Anoka - Hennepin ISD # 11 0.182630 21.33% 253,826 46,356 Other 0.027880 3.26% 253.826 7,077 Total 0.856130 100.00% 217,308 The estimates listed above display the captured tax capacity as of 2009. The tax rate used for calculations is the actual Pay 2009 rate. The total net capacity for the entities listed above are based on actual Pay 2009 figures. (AS MODIFIED JUNE 7, 2011) IMPACT ON TAX BASE Pay 2011 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entft Total Anoka County 264,429,170 230,316 0.0871% City of Andover 22,917,073 230,316 1.0050% Anoka - Hennepin ISD # 11 21,321,775 230,316 1.0802% City of Andover - Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -7 The estimates listed above display the captured tax capacity as of 2011. The tax rate used for calculations is the actual Pay 2011 rate. The total net tax capacity for the entities listed above are based on actual Pay 2011 figures. Subsection 3.18. Tax Increment Financing Account for Tax Increment Financing District No. 1 -2. The tax increment received with respect to payment of principal and interest for bonds issued for improvements made within Tax Increment Financing District No. 1 -2 will be segregated by the City in a special account or accounts (the "Tax Increment Account ") 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. Subsection 3.19. Modification of Tax Increment Financins District No. 1 -2 and/or Tax Increment Financing Plan. As of September 2, 1986, no modifications to Tax Increment Financing District No. 1 -2 or the Tax Increment Financing Plan therefore have been made. (AS MODIFIED FEBRUARY 21, 1995) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. 1-2 is hereby modified to reflect an enlargement of the geographic area and increased project costs within Development DistrictNo. l as outlined in Section I, Subsections 1.5.,1.11., and 1.12. (AS MODIFIED NOVEMBER 17, 2009) Subsection 3.20. Administrative Expenses. In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell of a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3 -8 IMPACT ON TAX RATES Pay 2011 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.412840 38.80% 230,316 95,084 City of Andover 0.384090 36.10% 230,316 88,462 Anoka - Hennepin ISD # 11 0.239990 22.56% 230,316 55,274 Other 0.027090 2.55% 230.316 6,239 Total 1.064010 100.00% 245,059 The estimates listed above display the captured tax capacity as of 2011. The tax rate used for calculations is the actual Pay 2011 rate. The total net tax capacity for the entities listed above are based on actual Pay 2011 figures. Subsection 3.18. Tax Increment Financing Account for Tax Increment Financing District No. 1 -2. The tax increment received with respect to payment of principal and interest for bonds issued for improvements made within Tax Increment Financing District No. 1 -2 will be segregated by the City in a special account or accounts (the "Tax Increment Account ") 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. Subsection 3.19. Modification of Tax Increment Financins District No. 1 -2 and/or Tax Increment Financing Plan. As of September 2, 1986, no modifications to Tax Increment Financing District No. 1 -2 or the Tax Increment Financing Plan therefore have been made. (AS MODIFIED FEBRUARY 21, 1995) Pursuant to the adoption of the modification of the Development Program for Development District No. 1, Tax Increment Financing District No. 1-2 is hereby modified to reflect an enlargement of the geographic area and increased project costs within Development DistrictNo. l as outlined in Section I, Subsections 1.5.,1.11., and 1.12. (AS MODIFIED NOVEMBER 17, 2009) Subsection 3.20. Administrative Expenses. In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell of a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 3 -8 For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176 Subd.3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. (AS MODIFIED NOVEMBER 17, 2009) Subsection 3.21. Use of Tax Increment. The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following 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 ofthe Development District No. 1 pursuant to the M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of the Development District No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the EDA or City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Anoka County to the City for the Tax Increment Fund of said District. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -9 (AS MODIFIED NOVEMBER 17, 2009) Subsection 3.22. Excess Increments. Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Development District No. 1 or the District. City of Andover Tax Increment Financing Plan for Tax Increment Financing District No. 1 -2 3 -10 APPENDIX A BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. 1 AND TAX INCREMENT FINANCING DISTRICT NOS. 1 -1 AND 1 -2 APPENDIX A•I r.: Ll Tax Increment Financing- District 1 -1 ANL66VVA Proje ct Name: Andover Station Wn, Park L E G E N D Project Location Lots /Parcels ['J Park Water Right of Way City Limits Cut Pa Po a Ensl h 1 0 550 1,100 2,200 Feet 0 m z 0 m Z 2 I= NIN 1�El Tax Increment Financing District ., ANLb , Project Name: Andover Station ■ ■E . � � � � . �: �� 1111 ►� " �... ■r. -. #11 1� „ , �I - - ■u III � ■ ■■111 . •. �� IIII�IIIII �■ � �� ■� IIIf1.� ,��rl■ ;,.z. ■■■i 111 1 ■IIrII� ■ ■moll `i�� ■il 11 � � C I X11 r _.:.' � �� •� ,. �i ■IIN � � 11111 ■ 111i 1i �JI_IIII ■� I■I ■ ■■ �� ■■ �l11111 ii ■ ■ ■ ■■ r ■� � . 11 111111■ ■1 III a •■■III■ 111 y :' ■iva ■■II■■ ■■ °iy1 x■■► i�r 1111 ■■ . r��j�� I■III■ ■I■�i , 101 Ini gnu. , =s° a1� 11:1 IN I 111 ■: C .. : �� 11111 ■■ �. �.;><■ . Project Location +r Lo ■■ Park Water Right of Way 1 1 City h,n�w"1 1► APPENDIX B MAP OF PARCELS FOR ACQUISITION APPENDIX B -I m A i r i o r !&DOVER 2008 Comprehensive Plan Update Chapter One: Foundation of the Comprehensive Plan J N irV nr bpr 2008 Comprehensive Plan Update Goals, Objectives and Policies The following pages describe the goals of the community and the strategies that are employed to achieve them. The goals, objectives and policies are structured according to the topic that they address. However, it is important to remember that these statements are interrelated. As a result, the cause and effect for each topic must be considered when decisions concerning the Comprehensive Plan are made. For the purposes of this plan these terms are defined as follows: Goal: A statement that expresses a desired outcome or state of affairs. Objective: A statement that provides direction on how the goal will be achieved. Policy: A specific action that will be taken or a general rule that will be applied to a specific situation. Overarching Goals, Objectives and Policies Goal 1: Maintain and enhance the quality of life in Andover Objective: Efficiently provide basic services to improve all aspects of the city that contribute to quality of life including land use, public safety, transportation, recreation, health, education, and resource preservation Policy: Prepare, implement, periodically evaluate and update local controls such as: • Comprehensive Plan • City Code • Capital Improvement Plan • Water Resource Management Plan • Stormwater Pollution Prevention Program • Park Improvement Plan Objective: Preserve the rural character of the community Policies: • Preserve the Rural Residential Planning Area Designation Identified by the Metropolitan Council 2030 Regional Development Framework • Plan the efficient expansion of municipal sewer and water through implementation of the Land Use Plan • Preserve natural areas through implementation of the Parks and Open Space Plan 2 C I T 1' O V NM ER ` 2008 Comprehensive Plan Update Goal 2: Maintain a high degree of community planning and involvement Objective: Ensure an open and accessible local government that is responsive to the needs of residents Policies: • Provide access to information in a variety of forms including the newsletter, official newspaper, web site and televised meetings • Maintain healthy relationships with residents, businesses, community groups, school districts, and government agencies to ensure all points of view are represented • Promote participation in citizen advisory committees • Consider all available information and the potential impacts on all aspects of the community when making land use decisions • Maintain a mix of land uses, including schools, professional and medical office, retail, community and park facilities to provide a vital node of activity in the vicinity of City Hall • Encourage resident involvement through the public hearing process and utilize a variety of public hearing notification methods including direct mailing, publication in the official newspaper and signs placed on subject properties Goal 3: Maintain the Comprehensive Plan as a relevant official document Objective: Consider Comprehensive Plan amendments that better achieve the goals, objectives and policies of the Comprehensive Plan Policies: • Adhere to the goals, objectives and policies of this Comprehensive Plan to prevent incremental decision making that adversely affects the intent of the plan • Review Comprehensive Plan text amendments with the following criteria: o A public need for the proposed amendment can be identified o The proposed amendment is the best way to satisfy that need o The amendment is consistent with the goals, objectives and policies of the Comprehensive Plan 3 cirr or N660V 2008 Comprehensive Plan Update o The amendment is in the best interest of the City of Andover as determined by the City Council Review Comprehensive Plan amendments concerning a proposed land use change with the following criteria: • Conditions have changed since the present land use designation was established such to warrant the proposed amendment or the present land use designation is in error • The proposed land use is compatible with surrounding land uses and with the goals, objectives and policies of the Comprehensive Plan • There is capacity of public systems, facilities and services to serve the proposed land use and capacity of these systems to serve other planned land uses is not adversely affected • Agreement can be reached for the applicant of the proposed land use to pay for any increased capacity of public systems, facilities and services required to serve the proposed land use • Potential impacts by the proposed land use on natural resources including vegetation, wetlands, floodplain and other natural features can be avoided or sufficiently mitigated as determined by the City Council o To ensure a transition or buffer between urban and rural residential zoning districts Land Use Goals, Objectives and Policies Goal 4: Allow residential growth while maintaining the quality of natural resources and amenities Objective: Clearly define areas for urban and rural residential development Objective: Promote orderly growth to ensure efficient utilization and delivery of community services Objective: Prevent extension of infrastructure that is inconsistent with the Comprehensive Plan Objective: Work cooperatively with resource protection agencies and organizations to minimize the impact of development on natural resources and amenities Objective: Create opportunities for the city to preserve open space and natural amenities through review of development proposals and implementation of the Parks and Open Space Plan 4 A C 1 1' 1' U f' NDO� 2008 Comprehensive Plan Update Policies: • Maintain a Municipal Urban Service Area (MUSA) Boundary to define the boundary between the Developing Community and Rural Residential planning area designations of the 2030 Regional Development Framework ® Stage urban development within the MUSA Boundary to ensure orderly growth and cost efficient expansion of infrastructure • Review and update the staging plan periodically to address changes in times and conditions Prohibit platting of property without municipal sewer and water within the MUSA Boundary • Restrict lot splits without municipal sewer and water within the MUSA Boundary • Encourage infill development within the MUSA Boundary with appropriate transitions to existing neighborhoods • Allow rural development outside of the MUSA Boundary consistent with the Rural Residential Land Use Designation • Require existing conditions information to be provided during the development review process to allow evaluation of opportunities to preserve and protect natural features and open space • Engage local watershed management organizations and other appropriate agencies and organizations in the review of development proposals Goal 5: Encourage appropriate economic growth and redevelopment Objective: Develop a diversified tax base through balanced development of commercial, light industrial, and residential properties Objective: Create a downtown area by aggregating commercial land uses along Bunker Lake Boulevard between Hanson Boulevard and Crosstown Boulevard Objective: Select strategic locations for neighborhood and community commercial sites and establish design performance standards for such uses that promote quality site design and compatible land use arrangements Objective: Prevent the intensification of neighborhood commercial areas that may negatively affect surrounding residential properties ci'v or NDOVR 2008 Comprehensive Plan Update Policies: • Maintain the existing commercial nodes along Hanson Boulevard, Bunker Lake Boulevard and Round Lake Boulevard as cohesive, interrelated nodes of commercial activity • Prevent fragmented, uncoordinated and linear commercial development away from these locations • Provide limited opportunities for commercial development in other areas of the city only when demand is demonstrated with a professionally prepared market study • Ensure that new development and redevelopment has a positive impact on the community by providing appropriate transitions and demonstrating compliance with the City Code • Promote redevelopment of existing industrial zones to accommodate industrial development, enhance community appearance and tax base • Allow limited industrial development within Andover Station North when the use, site design, and building architecture are compatible with the existing and planned uses within this commercial center Goal: Protect and develop access for alternative energy systems Objective: Preserve reasonable access to all parcels so that alternative forms of energy can be used to supplement or replace conventional forms of energy Policies: • Encourage and support educational programs and research that focuses on alternative or renewable energy systems such as offered by Metro Cities, University of Minnesota Extension Services, Minnesota Office of Environmental Assistance, Anoka County and other organizations • Encourage the possible use of solar energy in future housing developments • Encourage future site and building plans to design for efficient use of solar energy including such elements as the location of windows, shade trees, windows, and driveways Goal: Reduce maintenance and energy costs for public facilities and infrastructure M C 1 'f 1' O L' r, - N —m— ' 2008 Comprehensive Plan Update Objective: Where feasible, use low energy design elements for future public facilities and infrastructure development Policy: • Explore alternative energy sources when replacing systems in public facilities Housing Goals, Objectives and Policies Goal: Provide a variety of housing types to accommodate the life cycle needs of all residents Goal: Remain responsive to housing market demands through implementation of the Land Use Plan Objective: Utilize the existing housing stock to provide a portion of the affordable housing demand projected by the Metropolitan Council Objective: Utilize local controls to provide opportunities for a variety of housing types, including affordable housing Objective: Continue to work with agencies that provide affordable housing and housing for residents with special needs Policies: • Work with property owners to identify sources of funding for home improvements to prevent deterioration of the city's older homes • Continue the housing rehabilitation revolving loan program to provide maintenance assistance for housing occupied by low to moderate income families and individuals • Support Anoka County's efforts to implement the Five Year Consolidated Plan • Utilize the planned unit development review process for medium and high density residential projects to encourage more efficient allocation of density and intensity of land use and get higher quality development while providing amenities not otherwise achievable with existing zoning classes. • Support public service agency applications for the Community Development Block Grant Program 7 Ar v o r M)OVI;R 2008 Comprehensive Plan Update Transportation Goals, Objectives and Policies Goal: Provide a safe and efficient transportation system that is cost effective and serves the existing and future access and mobility needs of the City Objective: Ensure adequate internal and external transportation access and links for efficient movement of people and goods Objective: Provide a transportation system that enhances quality economic development within the City Objective: Provide a transportation system that meets the varied needs of Andover residents Objective: Consider the mobility needs of all persons in the planning and development of the transportation system Policies: • Provide for early and continuing citizen involvement in transportation planning and implementation of projects • Provide a roadway system within a functional hierarchy that accommodates existing and future travel demands by providing the necessary design features to satisfy the roadway's intended use • Provide sufficient roadway capacity through the construction of transportation system improvements that accommodate existing and future demand • Require construction of transportation system improvements in conjunction with new developments when the need is created by the new development • Require payment for future transportation improvements as a part of evelopment approval proportionate to the demand created by new developments Ensure that all components of the transportation system are maintained and developed to the highest standards to insure against detrimental impact upon community growth • Utilize the Capital Improvement Plan to schedule projects that increase public safety by minimizing hazards and correcting poorly designed intersections and access points rNrx or OD�R 2008 Comprehensive Plan Update Goal: Provide a coordinated transportation system that is compatible with adjacent municipality, Anoka County, Metropolitan Council and State of Minnesota transportation plans Objective: Coordinate transportation planning and transportation, system improvements with other government agencies to increase efficiencies Objective: Increase opportunities for funding of local transportation system improvements from federal, state and county funding sources Policies: • Coordinate grant applications and other funding requests, when appropriate, with neighboring municipalities, as well as state, regional and county agencies • Coordinate participation of Anoka County and adjacent cities, where appropriate, in the provision of Transportation Plan elements Goal: Provide multi -modal transportation options whenever and wherever feasible and advantageous Objective: Periodically evaluate potential ridership and feasibility of joining the Metropolitan Transit Taxing District to provide additional transit options for Andover residents Policies: • Identify locations for park and ride facilities and preserve the ability to implement these facilities in the future • Promote ridesharing and increased vehicle occupancies throughout the City Goal: Minimize impacts of the transportation system on the natural environment Objective: Ensure environmentally sensitive implementation of the transportation system through the planning, design and construction of improvements Objective: Consider the impacts of improvements to the existing transportation system on land use, environmental, social, historic, and cultural resources C i 'f 1' O 4' NDOVER 2008 Comprehensive Plan Update Policies: • Adhere to best management practices and all components of the Implementation Plan during the planning, construction and maintenance of the transportation system • Separate non - motorized traffic from arterial and collector roadways Encourage joint parking facilities to conserve land Goal: Enhance accessibility by providing an interconnected multi- use trail system Objective: Provide an accessible trail system that links residential neighborhoods, commercial developments, and park areas Objective: Utilize multiple funding sources to complete the regional and local trail systems Objective: Coordinate trail construction with street improvement projects, new development, expansion and redevelopment projects Policies: • Maintain a map of existing and future local and regional trails and coordinate trail planning, construction and maintenance in the Capital Improvement Plan • Fund regional trail system improvements adjacent to residential properties with trail fees collected from new residential developments • Require regional trail construction adjacent to commercial and industrial properties, where shown on the trails plan, in conjunction with development, expansion and redevelopment projects Require local trail construction adjacent to residential, commercial and industrial properties, where shown on the trails plan, in conjunction with development, expansion and redevelopment projects • Develop trails in accordance with the American Association of State Highway Transportation Officials (AASHTO) standards • Coordinate trail and sidewalk improvements, where appropriate, with Anoka County and neighboring cities 10 C 1 '1' 1' G 1' NDO� 2008 Comprehensive Plan Update Water Resources Goals, Objectives and Policies These goals, objectives and policies are included within the City of Andover Water Resource Management Plan and Water Supply Plan. These are separate documents that have been adopted as a component of the Comprehensive Plan. Parks and Open Space Goals, Objectives and Policies Goal 9: Provide parks and facilities that meet present park needs and plan for the future needs of the city Objectives: a. Maintain and upgrade current park facilities b. Evaluate existing conditions and future growth projections to determine the types of parks and facilities needed to complete the park system C. Provide more passive recreation opportunities d. Provide for a balance among active and passive recreation areas and activities e. Provide recreation facilities for all age groups and abilities within the city f. Design and maintain recreation areas with appropriate lighting, landscaping, parking, and shelter design g. Consider the Site Selection Criteria established in the Parks and Open Space Plan and the standards of the National Recreation and Park Association in the planning and design of the park system Policies: • Implement a maintenance schedule for the grounds and facilities within the current park system • Aggregate resources from local, state and federal sources to complete planned improvements as scheduled in the Capital Improvement Plan • Maintain and Update the Park Study as a guide for the number, size, type and location of parks and facilities needed to complete the park system to serve the needs of residents 11 c�ri or NDOVER 2008 Comprehensive Plan Update • Accept only lands suitable for park and recreation purposes as fulfillment of the parkland dedication requirements. • Utilize the Capital Improvement Plan to schedule replacement of existing park facilities and installation of new facilities • Utilize the Park and Recreation Commission to advise the Council on matters relating to parks, recreation and park facilities • Provide regulations and policies for park use and park dedication • Consider the adopted Guidelines for Field Usage by Youth Athletic Associations • Work cooperatively with other organizations and government agencies to enhance local and regional park systems Goal 2; Promote, protect, preserve and enhance the City's natural and open space for the enjoyment of residents, protection of water and air quality and the preservation of wildlife habitat Objectives: Consider development of passive, nature - related recreation or conservancy areas on sites found to be suitable for these purposes b. Identify appropriate areas for preservation through analysis of natural features, the Site Selection Criteria established in the Parks and Open Space Plan and the Land Use Plan C. Plan for and Provide connections with the park and trail systems in a manner that both preserves and allows public enjoyment of natural areas d. Seek to provide buffer areas adjacent to significant natural resources and parks Policies: • Work collaboratively with property owners in the preservation of open space • Permanently protect open space with conservation easements, even when fee title acquisition and other methods are used. • Prepare, implement and monitor the effectiveness of conservation plans that address the specific characteristics of the various types of natural areas • Utilize the Open Space Advisory Commission to advise the Council on matters concerning preservation of open space 12 e t'ry ne ND6—q 2008 Comprehensive Plan Update • Prevent incompatible land uses from locating adjacent to parks and open space areas through implementation of the Land Use Plan and zoning regulations • Work cooperatively with other organizations and government agencies to acquire and enhance open space areas within the city 13 i t � 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Planning and Zoning Commissioners FROM: Courtney Bednarz, City Planne SUBJECT: PUBLIC HEARING: Consider changes to City Code to comply with variance legislation enacted by the State of Minnesota. DATE: May 24, 2011 INTRODUCTION This item is a public hearing for discussion of the changes to the City Code that are needed to comply with recent changes in state law regarding variances. DISCUSSION The recent changes to state law are attached. City Code 12 -14 -7 Variances will need to be amended to reflect these changes. Additionally, there are a number of references to variances throughout the City Code that need to be adjusted accordingly. A draft ordinance amendment is attached to show the areas of the City Code that are affected. The proposed changes insert the new language to comply with state statute. ACTION REQUESTED The Planning Commission is asked to hold a public hearing and to discuss changes to the City Code to comply with state law. The Planning Commission will also need to make a recommendation to the City Council. If the Commission determines that additional information is needed to make a recommendation, this item can be tabled for discussion at another meeting. Attachments Final Engrossment Draft Ordinance Amendment Resp7e ftll submitted C ednarz 1 Chapter 19 - Revisor of Statutes k1ge 1' Minnesota Session Laws Sea Key: (1) language to be deleted (2) new language 2011, Regular Session This document represents the act as presented to the governor. The version passed by the legislature is the final engrossment. It does not represent the official 2011 session law, which will be available here summer 2011. CHAPTER 19-- H.F.No. 52 An act relating to local government; providing for variances from city, county, and town zoning controls and ordinances;amending Minnesota Statutes 2010, sections 394.27, subdivision 7; 462.357, subdivision 6. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2010, section 394.27, subdivision 7, is amended to read: Subd. 7. Variances; hardship practical difficulties. The board of adjustment shall have the exclusive power to order the issuance of variances from the t-errn-s requirements of any official control including restrictions placed on nonconformities. Variances shall only be permitted when they are in harmony with the general purposes and intent of the official control in eases ..,,,e there ° rr°°+;°°, diff:. A,+_°s or parfieular hardship in the of ew out the str °+ letter- of a off;eia °„n +r i and when+"�ma�f .'uy rrj'ia:b v �� wa va uuy' vuivaua �vu�i va, the dance variances are consistent with the comprehensive plan. "Hardship" as u plight of the landowner is dne to eir-eumstanees unique to the property not ereated by the landowner-; and the , if granted, will net alter- the essential ehar-aeter- of the leealit-y. Variances may granted when the applicant for the variance establishes that there are practical difficulties in complying with the official control. "Practical difficulties," as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by an official control, the plight of the landowner is due to circumstances unique to the property not created by the landowner; and the variance, if granted, will not alter the essential character of the locality. Economic considerations alone shall do not constitute ° hardship if ° reasonable use for the property exists under the terms of the or-di .anee practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth sheltered construction as defined in section 216C.06, subdivision 14, when in harmony with the official controls. No variance may be granted that would allow any use that is prohibited not allowed in the zoning district in which the subject property is located. The board of adjustment may impose conditions in the granting of variances to. A condition must be directly related to and must bear a rough proportionality to the impact created by the variance insure , einplianee and to eteet add nt properties nd the ,b,l; interest. The board of adjustment may consider the inability to use salar- energy systems a "hardship" in the gr-anting of varianees. https: / /www.revisor.nm.gov /laws / ?id =19 &year= 2011 &type =0 5/19/; Chapter 19 - Revisor of Statutes EFFECTIVE DATE This section is effective the day following final enactment. Sec. 2. Minnesota Statutes 2010, section 462.357, subdivision 6, is amended to read: Subd. 6. Appeals and adjustments. Appeals to the board of appeals and adjustments may be taken by any affected person upon compliance with any reasonable conditions imposed by the zoning ordinance. The board of appeals and adjustments has the following powers with respect to the zoning ordinance: (1) To hear and decide appeals where it is alleged that there is an error in any order, requirement, decision, or determination made by an administrative officer in the enforcement of the zoning ordinance. (2) To hear requests for variances from the liter-a! provisions of the ordina in instanees where their stfiet enfereement would ea-use undue hardship beea-ase e varia-nees anbx when it is demenstT-af e d-that S-I-Ieh-a-e-tiens will be in keeping with th -And i4itei-if of the ordinance. "Undue hardship" as used in confleefien with the granting of a a + allowed by the official . .+rain requirements of the zoning ordinance including restrictions placed on nonconformities Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance and when the variances are consistent with the comprehensive plan Variances may be granted when the applicant for the variance establishes that there are ractical difficulties in complying with the zoning ordinance "Practical difficulties," as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the zoning ordinance; the plight of the landowner is due to circumstances unique to the property not created by the landowner,; and the variance, if granted, will not alter the essential character of the locality. Economic considerations alone shall do not constitute —an r a h- if reasonable for the +i Rrdinallpp, rT a hardship . also ,,,elud $ practical difficulties. Practical difficulties include, but is- are not limited to, inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth sheltered construction as defined in section 216C.06, subdivision 14, when in harmony with the ordinance. The board of appeals and adjustments or the governing body as the case may be, may not permit as a variance any use that is not per-mitt d allowed under the zonin ordinance for property in the zone where the affected person's land is located. The board or governing body as the case may be, may permit as a variance the temporary use of a one family dwelling as a two family dwelling. The board or governing body as the case may be may impose conditions in the granting of variances to l and to protect . A condition must be directly related to and must bear a rough proportionality to the impact created by the variance. EFFECTIVE DATE This section is effective the day following final enactment. Presented to the governor May 2, 2011 Signed by the governor May 5, 2011, 3:08 p.m. https://www.revisor.nin.gov/laws/?id=19&year--201 1 &type =0 Page: 5/19. r CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE NO. THE CITY COUNCIL OF THE CITY OF ANDOVER DOES HEREBY ORDAIN AS FOLLOWS: CITY CODE TITLE 9: BUILDING REGULATIONS CHAPTER 2: WATER -FED HEAT EXTRACTORS AND AIR CONDITIONING EQUIPMENT 9 -2 -6: VARIANCES: Variances to this chapter may be granted Requests for variances shall be made in accordance with the procedures and requirements set forth in City Code 12 -14 -7. CITY CODE TITLE 11: SUBDIVISION REGULATIONS CHAPTER 1: GENERAL SUBDIVISION PROVISIONS 11 -1 -8: VARIANCES: A. Hardship: The Couaeil may grant a varianee ftem the r-eqairements of this title as to speeifie tfaets ef land where it is sh&vffi that by r-easeii of tepegr-aphy of other- physieal eenditiells strziet eoffivii.... adversely affeet the adjaeefft pr-apei4y ew-ner-s and Gemprehensive Development Plan ef the spirit an iR4e,.t e f this fitle Variances may be granted with approval of a preliminary plat under the variance review criteria of City Code 14 -14 -7. CITY CODE TITLE 12: ZONING REGULATIONS CHAPTER 2: RULES AND DEFINITIONS 12 -2 -2: DEFINITIONS: ... _... PRACTICAL DIFFICULTIES• as used in connection with the granting of a variance. means that the property owner roposes to use the property in a reasonable manner not permitted by the zoning ordinance, plight of the landowner is due to circumstances unique to the property not created by the landowner-, and the variance if granted, will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties Practical difficulties include but are not limited to inadequate access to direct sunlight for solar energy systems. 12 -14 -7: VARIANCES: A. Variances Authorized: Whefe there praefieal ai ffieu `ie eaffying-eut4he—A-riet letter of the pr-evisions of this fifie, an appeal may be made and a var-iaftee prepefty exi 4s under- the temis ef the efdinaiiee. (Amended Or-d. 8, 10 21 1970, Or-d. 314, 10 4 2005) The City Council shall have the exclusive power to order the issuance of variances from the requirements of any official control including restrictions placed on nonconformities. B. Review Criteria: 1 Variances shall only be permitted when they are in harmony with the general purposes and intent of the official control and when the variances are consistent with the comprehensive plan. 2 Variances maybe granted when the applicant for the variance establishes that there are practical difficulties in complying with the official control. "Practical difficulties," as used in connection with the rg anting of a variance means that the property owner proposes to use the property in a reasonable manner not permitted by an official control; the plight of the landowner is due to circumstances unique to the property not created by the landowner; and the variance, if granted will not alter the essential character of the locality. 3 Practical difficulties include but are not limited to inadequate access to direct sunlight for solar energy systems. 4 Economic considerations alone do not constitute practical difficulties. 5 Variances shall be granted for earth sheltered construction as defined in section 216C.06 subdivision 14 when in harmony with the official controls. 6 No variance may be granted that would allow any use that is not allowed in the zoning district in which the subject property is located. 7 The City Council may impose conditions in the granting of variances. A condition must be directly_ related to and must bear a rough proportionality to the impact created by the variance BC. Procedure: The procedure for granting variances is as follows: 1. Request For Variance; Fee: A person desiring a variance shall fill out and submit to the Community Development Director a request for variance application form together with a fee as set forth by ordinance'. A ublie hea.. shall be held, the Plaiini Ge id d City Code 12 t... •.ib .� v j ua� > >u»>uug �- vuu.>i�oivu as provided in 8 (A mended Ord. 342 3 6 nom) 2. Planning Commission Review: A public hearing shall be held by the Planning Commission as provided in City Code 12 -14 -8. The Planning Commission shall make a recommendation to the City Council based upon the review criteria provided in this section. 23. City Council Action: The City Council may grant the variance if it finds the request complies with the review criteria provided in this section. :° st if it will be ,. keeping with the i t d t c ..emu vru> vv in »vvYuab vv>u> �u>..iN>rlc aiinzi>cci>c-vr this title and if it finds that striet enfer-eeme,4 efthis title will ea-useundue hardships beeffus&-af net eensfittAe an tifidue hardship if reasonable use of the prepei4y exists under- the tetans ef flis title. 34. Appeals: The petitioner, if appealing an interpretation of this title by an employee of the city which would require him/her to obtain a variance, shall have the fee refunded if his/her appeal is upheld by the City Council. 45. Emergency Variance Requests: The City Council may waive Planning and Zoning Commission review and take immediate action on emergency variance requests that affect the immediate health and welfare of the citizens of Andover or if time constraints present severe hardship to the applicant. The applicant is required to show the immediacy of the issue and the potential health or welfare threat. The City Council shall determine if the request warrants immediate review. 56. Time Limit On Implementing Variance: If the City Council determines that no significant progress has been made in the first twelve (12) months after the approval of the variance, the variance will be null and void. (Amended Ord. 8, 10 -21 -1970) 1 See subsection 1 -7 -3H of this code. CITY CODE TITLE 13: PLANNING AND DEVELOPMENT CHAPTER 1: SPLITTING LOTS, PARCELS OR TRACTS OF LAND fetumed by the PlanrAiig and Zoning Ceffffnissionte the City Couneil within siKt-y (60) days fbr Variances maybe granted with the approval of a lot split based upon the variance review criteria of City Code 12 -14 -7. Variances requested as a part of anyother subdivision under Title 13 shall be made in accordance with the procedures and requirements set forth in City Code 12 -14 -7. 13 -1 -9: APPLICATION AND TERM OF PROVISIONS; CONFLICTS: A. This chapter shall apply to and govern the entire city during the period for which it is in effect. This chapter, during its effective period, shall replace and supersede provisions in all other ordinances and regulations applicable to the city which are in conflict or inconsistent with the provisions herein. All ordinances and provisions therein which are not in conflict with the terms and conditions of this chapter shall continue in full force and effect. CHAPTER 2: AGRICULTURAL PRESERVATION 13 -2 -5: VARIANCES: uwa Wi uiv r.v . awv..., -- - -- _ -� »r .__, -- =r - --- ----- a -- (Aimended Or Variances to this chapter maybe granted asrovided in the variance application process of City Code 12 -14 -7. a D D a The r r t4ina y rianees g rm a f is as folio fill eut a-ad submit to the City Gler-k 1. Request Fer- Vafianee; Fee! + F t....ether A person .,,:tt, fee avar-ianee shall t f b a• } n 11 other requests shall also fer vai-zianee .m Y a t by } as i4 Ora c-t 2 2 1982; .,.,,a 2003 Code) ha-ve a fee as forth ,rain,, 7 D7 a And 7 a C..,ti.....:..,.;..r. F 1• t , it (Amended Der,.,rt 'T a+ the Dl. -- "Ay Couft. ;1. 7 C t shall t b 't arepe a. The ri b to the City C,.,,r.,.;l � b. The r shall rr 2 C '1 n t' . C ..:1 r., the var-ianee if it finds that a hardship 1, been City The City ant use c..a•, eei4land. r. :..vim :a0s i"v...,:�.��,:� get! CHAPTER 4: SHORELAND MANAGEMENT _... _ . I MVP . =01 N i W i. ow . PRACTICAL DIFFICULTIES: as used in connection with the granting of a variance means that the property owner proposes to use the property in a reasonable manner not permitted by the zoning ordinance: the plight of the landowner is due to circumstances unique to the property not created by the landowner• and the variance if granted will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. CHAPTER 5: BLUFFLAND AND RIVERLAND DEVELOPMENT 13 -5 -4: DEFINITIONS PRACTICAL DIFFICULTIES: as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the . zoning ordinance; the plight of the landowner is due to circumstances unique to the property not created by the landowner; and the variance, if granted will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energysystems. VARIANCE: Any modification or variation of official controls where it is determined that by reason of exceptional circumstances, the strict enforcement of the official controls would cause unnecessary hardship-. practical difficulties. 13 -5 -9: VARIANCES: The ': f . t f t f lley inn difie ..� Fja w., uFj va •ua.�v ava1way.� ua�� ra w�-.u�� v. iuv avuwrirr� Cvixcti �xvrrr: Variances to this chapter may be granted as provided in the variance application process of City Cade 12 -14 -7. C. There are exeeptienal eireaffistanees unique to the stkjeet pr-epeitf that were Rot ereated by the landevffiers. (Ord. 223 4 19 199-7) D. Gfa-rAing of the var-iaRee will not allow any use whieh is neither a pemitted nor- a eefiditiEffial Use i T�f Plan +1. Ruffi D;..o,. /(l, -.7 `7'l2 4 10 �nn,7. a nnnz r,.,t.,\ affid. CHAPTER 6: BUFFER STRIPS AND STANDARDS FOR PROTECTION OF WETLANDS AND STORM WATER PONDS 13 -6 -7: VARIANCES: A. Request For Variance: Requests for variances shall be made in accordance with the procedures and requirements set forth in Section 41 1 9 12- 14 -7of this code. set forth in Seetion 11 1 9 of this eede have been ine�. Varianees shall net be granted wWeh woul crraurirvciz�� the zrrccm- and ptrrposC., of t...., ......t,..,.. (....... 114, 7 _.. 19 96) ..) CITY CODE TITLE 14: FLOOD CONTROL CHAPTER 1: FLOOD CONTROL REGULATIONS 14 -1 -4: DEFINITIONS: VARIANCE: A modification of a specific permitted development standard required in an official control, including this chapter, to allow an alternative development standard not stated as acceptable in the official control, but only as applied to a particular property for the purpose of alleviating a hardship, practical difficulty or unique circumstances as defined and elaborated upon in the city's respective planning and zoning enabling legislation. (Ord. 107, 2 -21 -1995; amd. 2003 Code) 14 -1 -13: ADMINISTRATION AND ENFORCEMENT OFFICIALS: B. Board Of Adjustment: 1. Board Established: A Board of Adjustment is hereby established. 2. Rules: The Board of Adjustment shall adopt rules for the conduct of business and may exercise all of the powers conferred on such boards by state law. 3. Appeals: The Board shall hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement or administration of this chapter. 4. Variances: a. The Board may authorize, upon appeal in specific cases, such variance from the terms of this chapter , as provided for in the respective enabling legislation for planning and zoning for cities or counties as appropriate. In the granting of such variance, the Board of Adjustment shall clearly identify in writing the specific conditions that existed consistent with the criteria specified in the respective enabling legislation that justified the granting of the variance. No variance shall have the effect of allowing in any district uses prohibited in that district, permit a lower degree of flood protection than the regulatory flood protection elevation for the particular area, or permit standards lower than those required by state law. b. The Zoning Administrator shall notify the applicant for a variance that: 1) The issuance of a variance to construct a structure below the base flood level will result in increased premium rates for flood insurance up to amounts as high as twenty five dollars ($25.00) for one hundred dollars ($100.00) of insurance coverage; and 2) such construction below the 100 -year or regional flood level increases risks to life and property. Such notification shall be maintained with a record of all variances actions. The city shall maintain a record of all variance actions, including justification for their issuance, and report such variances issued in its annual or biennial report submitted to the Administrator of the National Flood Insurance Program. (Ord. 107,2-21-1995) 5. Hearings: Upon filing with the Board of Adjustment of an appeal from a decision of the Zoning Administrator, or an application for a variance, the Board shall fix a reasonable time for a hearing and give due notice to the parties in interest. The Board shall submit by mail to the Commissioner of Natural Resources of the state a copy of the application for proposed variances sufficiently in advance so that the Commissioner will receive at least ten (10) days' notice of the hearing. 6. Decisions: The Board shall arrive at a decision on such appeal or variance within sixty (60) days. In passing upon an appeal, the Board may, so long as such action is in conformity with the provisions of this chapter, reverse or affirm, wholly or in part, or modify the order, requirement, decision or determination of the Zoning Administrator or other public official. It shall make its decision in writing setting forth the findings of fact and the reasons for its decisions. In granting a variance, the board may prescribe appropriate conditions and safeguards such as those specified in Subsection 14- 1 -14C5 of this chapter, which are in conformity with the purposes of this chapter. Violations of such conditions and safeguards, when made a part of the terms under which the variance is granted, shall be deemed a violation of this chapter punishable under Section 14 -1 -17. A copy of all decisions granting variances shall be forwarded by mail to the Commissioner of Natural Resources of the state within ten (10) days of such action. 7. Appeals From Decisions: Appeals from any decision of the Board may be made and as specified in the city's official controlsl and Minnesota statutes. (Ord. 107, 2 -21 -1995; amd. 2003 Code) 10 M � S 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Planning and Zoning Commissioners FROM: Courtney Bednarz, City Planned SUBJECT: Work Session: Discuss status of planning and development DATE: May 24, 2011 INTRODUCTION One of the topics discussed at the joint workshop with the City Council was how to engage the Planning Commission in a discussion beyond applications and ordinance amendments to longer term planning for the city. DISCUSSION The most recent Planning Commission discussion on this topic occurred during the review and approval of the comprehensive plan update in 2008 and 2009. At that time each of the chapters of the plan was presented for review and recommendation by the Commission. As a starting point for this broad discussion topic, a summary of residential, commercial and industrial development is attached. ACTION REQUESTED The Commission is asked to discuss their vision for the future of Andover and any actionable steps that should be recommended to the Council to pursue this vision. Attachments Residential Development Summary Available Commercial and Industrial Sites Res ctfully submitted, o y e narz h O � � o y F 0 h C1 c0 D N N a AF w N C a a GTy R N N V7 N C y G to N N bA R A ? h N q p '0 N W U ° H d O Q P7 N N O F po W y a r-1 � 3 A a F q cC •G W R oo en q jj N � C W L& �o M m °,_„° N ,-� oo ,--� ,-. ,--� a ,--� m ,--� V m ON A ? H N q O H e-1 H 1� .CA. N O O O O d A p .o �= 0O O b W a N V1 �O bA d ,b W b b 3 W N v 0 0 Z W N v U Q N c a 0 o 0 U U ej �✓ O c C 3 O 0 0 0 0 0 0 0 0 0 0 Ica aaa0H 0 0> c��cac7t5xx F•�3333333 .r N a7 Y N (6 Y N c Ln — Ln a Ln O Z m � u V a) Q E O. 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