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99-138ORIGiNAL Council File # l� " � JO Green Sheet # �O J L-�..� RESOLUTION CfTY OF SAINT PAUL, MINNESOTA Presented By Referred To 33 Committee: Date RESOLUTION APPROVING THE AMENDED AND RESTATED TAX INCREMENT FINANCl23G PLAN FOR THE BLOCK 39/ARENA REDEVEL,OPMENT TAX INCREMENT FINANCING DISTRICT 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul (the "AUthority"1 has heretofore adopted a resolution establishing the Block 39/Arena Redevelopment Tax Increment Financing District (the "Tax Increment District") and approving a tax increment financing plan therefor (the "Tax Increment Financing Plan"). WHEREAS, the Authority has hereto determined that it is necessary and desirable to amend the Tax Increment Financing Plan in certain respects and has theretofore had prepared an Amended and Restated Tax Increment Financing Plan. WHEREAS, the Authority has performed all actions required by law to be performed prior to the adoption of the Amended and Restated Tax Increment Financing Plan, including, but not limited to, notification of Ramsey County, Independent School District Number 625 and the County Commissioner having jurisdiction over the property included in the Tax Increment District, and requesting the City Council to approve the Amended and Restated Tax Increment Financing Plan following the holding of a public hearing thereon. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the '�Council��), as follows: Section 1. Findinc�s by the City for the Approval of the Amended and Restated Tax Increment Financing Plan for the Block 39/Arena Tax Increment Financing District. 1018759.1 99 -13g 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 �i 72 73 74 75 76 77 78 79 80 ai 82 1.01. The ratifies its findin public interest and Minnesota Statutes, Council has heretofore found and hereby g that the Tax Increment District is in the is a"redevelopment district" pursuant to Section 469.174, Subd. 10. 1.02. The Council has heretofore found and hereby ratifies its finding that the Tax Increment District, and the approval of the Amended and Restated Tax Increment Financing Plan relating thereto, are intended and, in the judgment of this Council, the effect of such actions will be to provide an impetus for redevelopment and to further the public purposes and accomplish certain objectives as specified in the Amended and Restated Tax Increment Financing Plan which is hereby incorporated herein. 1.03. The Council has heretofore found and hereby ratifies its findings that the proposed development or redevelopment in the Tax Increment District, in the opinion of the City, would not occur solely through private invesCment within the reasonably foreseeable future and that the increased market value of the taxable property within the District that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Amended and Restated Tax Increment Financing Plan and, therefore, the use of tax increment financinq is deemed necessary; that the Amended and Restated Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Tax Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. Section 2. Approval of the Amended and Restated Tax Increment Financing Plan and Further pocumentation. 2.01. The Amended and Restated Tax Increment Financing Plan, as presented to the City Council on this date, is hereby approved, and shall be placed on file in the office of the City C1erk. 2.02. The sta£f of the City, the City's advisors and legal counsel are authorized and directed to cooperate as necessary with the Authority in the implementation of the Plans 1018759.1 4�-13�' � and for this this Council resolutions, necessary fo purpose to negotiate, draft, prepare and present to for its consideration all further plans, documents and contracts which may be deemed r this purpose. Requested by Department of: f"/NF�NCI64t- J��//LES g ��e-�-. � � Adopted by Council: Date ��_ ( �� Adoption Certified by Council Secretary By: a - � Approved by Mayor: a e g 3y: � �+ Form Approved by City Attomey By: �� . :PARTMENilOFFICE/COUN( fice of Fnancial Services �q_��Y oevnnn�xr omccroa No 63227 amcouca AGENDA BY (DATE] ASSIGM ♦ \ � amARORMEY ❑ aI't<LERR NUMBERf-0R RWiiNG ORDFR � F�+n11C1atsFRV�CE40IR. ❑ NUrICI�LaErtY�ACGf6 � WYOR�ORA541STANf� � ❑ TOTAL # OF SIGNATURE PAGES 1_ (CUP ALL LOCA710NS FOR SIGNATURE) attached r�oluHo� approves the Amended and Resfated Taz Increment Financin9 P�� fw the Block 39/Arena RedevelopmeM Tax Inerement F(rnruing Didrict. PLANNING CAMMISSION CIB CAMMfTfEE CIVIL SERVICE COMMISSION Has th�s persorvTirtn ever vroAretl u�Mer a cont2cl kr this departmenC7 YES NQ Has this persoNfirtn ever been a ciry employee? YES NO Does this persoMmm possess a skifl �wt iwrmally posseased by any curteM city em�oyee? YES NO Is this perso�rm 8[argeted vendo(t YES NO resolution 1s necessary for Ne pledge ot taz incmments from the $33,500,000 short tertn Commercial Paper wing to the long tertn debt financing for the Arena, not to exceed $75,000,000. term varia�le ra[e Qna�cing will 6e replacetl by long tertn fited iMeres[ tate tlebt. ihe City will not be able to take atlraMage of the historical low interest rates arailable in todays markets. fOTAL AMOUNT OF TRANSqCTION S 'UNDING SOURCE ,�9 I GREEN SHEET ACTNI7Y NUMBER ,� <_ . S:;'- �"- i.. `� _=j �y =,.�'�r �i.��w i t=._ V (CIRCLE ON� YES NO INANqpy �NFORNAiION (EXPWI� q9-138' HOUSING AND REDEVELOPMEtiT AUTHORITY OF THE CTTX OF SAINT PAI3L A�iENDED AND RESTATED TAX INCREN1ElVT FINANCING PLAN FOR BLOCK 39/ARENA REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT I. Introduction A. Background The Housin� and Redeaelopment Authority of the City of Saint Paul (the "HRA ") proposes a plan for the redevelopment of property in the City consistin� of acquisition of land, demolition of structures, and the construction of (i) a 1,07�- stall parkin� ramp and retail space (ii) an approximately 382,000 square foot office tower, and (iii) an approximately 20,000 seat,arena for professional hockey games and other large entertainment events, as a replacement of the existing RiverCentre arena, a11 on an approximateiy 12S acre site located in the central business district of downtown Saint Paul (collectively, the Project"). On November 30, 1978, the HRA approved the Seventh Place Redevelopment Plan and the Project Financing Plan therefor by Resolution No. 7 8-1 113 0-1. Subsequently the City Council of the City of Saint Paul (the "Council") gave its approval by Resolution C.F. No. 2721 �5 adopted on December 5, 1978. By Resolution No. 81-11/�-8 adopted November 6, 1981 and Resohition No. 83- 5f25-3 adopted May 2�, 1983, the HRA adopted modifications to such plans which did not require approval of the Council, and by Resotution No. 82-1J28-11 adopted amendments to the Redevelopment Plan and Project Financing Plan, which amendments �vere approved by the Council by Resolutions C.F. No. 278173 and 278670 adopted February 4, 1982 and May 1 I, 1982. The plans were again amended by Resolution C.F. No. 89-20?8 adopted by the Councit on November 9, 1939 and the HRA on November 9, 1939 by Resolution No. 89- 11/9-1. The plans were most recently amended by Resolution C.F. No. 97-668 adopted by the Council on May 28, 1997 and by Resolution 97-5/28-9 adopted b} the HRA on May 28, 1997. B. Creation of Block 39/Arena Redevelopment Tax Increment District This tax increment plan relates to the creation, under Minnesota Statutes Section 469.174, Subd. 10 of the Block 39 /Arena Redevelopment Tax Tncrement District (the "District"). C. Need and Public Purpose It is necessazy that the HRA exercise its powers under state la�v to develop, implement, and finance a program designed to encouraoe, ensure and facilitate the development of the propert�. This development will further accomplish the public purposes specified in this paragraph. K'\S HAREDIG E URS`,6139 arenan F wpd 99-138` On June 2, 1997, the city finalized a proposal to demolish the existin� Cicic Center arena and construct a new RiverCentre arena to be the home venue for a Iv'ational Hockey Lea�ue franchise, and the City Councit has determined that those improvements �vill be required to obtain for the City the benefits of a major league sports franchise playing its home �ames in that location. As a result of the Downtocrn Saint Paul Parking Study (the "Parkin� Study") conducted by SRF Consultin� Group Inc., a deficit of appro�imately 1,300 parking spaces �c•as identified. The parkina ramp project proposed for Block 39 ��ill add 1,07� parking spaces to the do�cnto�cn core. The March, 1997 draft plan for the Saint Paul Development Frame�vork identifies the Applebaum's block (which is Block 39) as a key redeve(opment opportunity. II. Obiecti��es of the HRA for the improvements in the Block 39/Arenn District area. A. Provide job opportunities for Snint Paul residents. The employment base of the City will immediately expand by more than 800 with the completion of the office building on Block 39, and the proposed tenant for the office tower is expected to continue to grow, adding ne�v jobs to the City�. Construction of the new RiverCentre arena �vill pro��ide newjobs for maintenance and operation of that facility, as �vell as additional jobs arisin� from concessions retail sales and other activities relating to events held in the arena. B. To redevelop underused property. Block 39 is a site that has been underutilized for many years. The majority of the area comprising the site has been used for small businesses. Ne�v commercial, cultural and recreational investments are jeopardized by declinin� employment opportunities from a variety of new causes, increased competition from the suburbs and downtown parkin� problems. The existing Civic Center arena is both structurally deficient and functionally obsolete. It cannot practically be used as a home venue for the professional hockey franchise awarded to the Saint Paul metropolitan area. In order to take advantage of the economic and development opportunities offered by the addition of the hockey team to the activities available in dow�nto��n St. Paul, the existing arena must be replaced. The new arena must be provided largely throu�h public initiative and investment. In order to protect past investments and remain competitive, the Block 39IArena Redevelopment Tax Increment Financing District needs to be created, to provide additional public investment to bolster employment opportunities, to solidiry downto�vn as a cohesive office retail center, to provide a home venue for the professional hockey team, to improve pedestrian circulation and to develop accessible parking. IC:\SH.4RED\GEURS`�bG9arenanf �cpd qq-��F� C. Provide Public Parking The parking garage to be constructed on Block 39 �cill include approximately 1,07� underground and aboce ground parkin� spaces, approximately [57�] of �vhich will be available for the general public, and help alleviate the doccntoti�n parkin� problems which ha�e heen identified by the Parking 5[udy. D. Ecpand the tax base of the City of Saint Paul. It is expected that the tasable mazket value of parcels an Block 39 will inerease b5 approximately $31,37�,QQ0 once the neGi office buildin� and parking ramp (includin� 20,000 square feet of retail space} is placed in service. This value consists of $3>,000,000 for 382,000 square feet of office space and retail in the office building, plus $57�,000 for 12,�00 square feet of retail in the parking ramp. The existing market value of Block 39 is $4,511,10Q The 1,07� space parl:ing ramp to be built on the block tivill cost approsimatelg $16,560,000, but �vi11 be ta�-exempt since it will be owned by the City. Construction of the new Ri� erCentre arena will not, by itself, increase the tax base of the City because that property is and cvill remain exempt from real property taxes. The economic acti��ity generated by the new arena is expected, however, to increase the taYable value of other prop2rry in its near vicinity, both within the District and surrounding it. E. Remove blight within doticntown Saint Paul. The Block 39 site and other properiy included in the District is located in downtown Saint Paul. Block 39 lies between Wabasha, St. PeYer, Fifth Street and Sixth Streets. The other property extends to and surrounds the site for the new RiverCentre arena plus thz Cle��eland Circle property. The existina buildings will be removed in the renovation process, and replaced with a new publicly-owned parking faciliry, a privately constructed office-building, and a neGV RiverCentre arena, substantially improving downtown St. Paul. III. Classification of the District. The HRA and the City, in determining the need to create a tax increment financin6 district in accordance �vith Section 469.174, fmd that the District is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subd. 10 because (1) parcels consisting of 70% of the area of the District aze occupied b} buildings, streets, utilities or other improvements and (2) more than 50% of the buildin�s are structurally substandard; and these conditions are reasonably distributed throu�hout the geo�raphic area of the District. The District contains 21 parcels of land totaling b34,394 square feet of which 100% is occupied b}� either buildin�s, streeU. utilities or other improvements. A total of 14 buildings are located �vithin the Disttict. Ea�tzmai real estate appraisals (which are on file in the offices I:��S H:1RED\GBURS\bLi9arenanf �vpd q9-I�' of the HRA) of ten buildings located on Block 39 support the conclusion that alt ten of them are structurally substandard. In addition, the District meets the requirements of a redevelopment district pursuant to Minnesota Statutes, Section 469.176, Subd. 4; because at least 90% of the revenues dericed from ta� increments from the District will be used to finance the cost of conectin� conditions that allow�ed desi�nation of the District as a redevelopment district under Section 469.174, Subd. 10 described above. These costs include acquirino properties and adjacent parcels demolition of structures, clearin� of land, and installation of utilities, roads, sidz�calks and parkine facilities for the District. The allocated administrative costs may also be included in the qualifyin� costs. IV. Description of the develonment nroaram for the Block 39/Arenn District. The development program consists of the development of the site to provide a buildable site for the RiverCentre arena and for a parking garage, retail space and an office to�ver on Block 39 in flie District. This will require acquiring land, relocation of certain existing operations, demolition of existing struchires, installation of infrastnicture, constn�ction of the new arena, possible skytivay connections, contracting for professional services essential to redevelopment activities, incurring financing related expenses and fimdin� administrative functions, all as described in more detail below: IC1SH.ARED.GEURS`�bli9arenauf wpd �t -I�' A. Estimated cost of redevelopment project. The estimated total cost of the ne�v activities to be undertaken in the District is $225,000,000, broken do«n as follows: (i) (ii) Block 39 Development Pazkin� Ramp and Retail O�ce Tou $ 40,000,000 55,000,000 RiverCentre Arena' TOTAL : An estimate of the public costs are as follows: Public Costs described in Section IV: �130,000,000 $22�.000.000 giock 39 $4Q000,000 City obligations for Arena 65,000,000 State obligations for Arena $65.000.000 Issuance Expenses and Resources (including Bond Issuance Premium, Underi��riter's Discount, Reserves and related financing costs) TOTAL $170,000,000 10,000,004 $180.000.000 The costs set forth above aze estimates and the amounts allocated to any item may be reallocated amono any of the other items set forth above, provided that the totai principal aznount of the costs for the items specified will not exceed $225,000,000. Incnr costs and expenses connected with financing activities. The City or its HRA shall issue a combination of tax e:cempt and taYable revenue oz general obligation tax increment bonds and revemie or general obli�ation parking bonds to fanance approYimately $120,000,000 of total pro}ect costs.� Bond issuance costs plus other financin� related costs. including reserves, capitalized interest, leQal eYpenses, printin� and undenvriter's discount, aze anticipated to totai approximately' $10,000,000. 1 MN Wild is responsible for cost overnms in excess of $ li0,000,000 �vhich is bein� provided by City and State for new Arena. K:\SH.ARED\GEURS\b139acenanf �vpd aq -�3�' C. Cit} and HRA Annual Budget. At the time of final approval of the issuance of debt, the HRA �ti�ll adopt a more detailed bud�et including a fmancing and spendinQ plan that �� i11 further detail the costs and financin� actiz�ities of A and B above. Additionally', each year as part of the Cit}' and HRA annual budaet process, the detailed budaet may be amended. As part of the annual budget process, the School Boazd and Counry will be contacted to gi�e any comments on the Tae Increment Financing Plan «bich ��ould include oriQinal plans and any annual bud�et amendments. V. Description of contracts entered into at the time of preparation of the Plan Section 46917�, Subd. 1(3) requires this ptan to contain a list of any development activities proposecl to take piace within the project, for which contracts have been entered into at the time of the prepacation of this plan. At the time of the prepazation of this plan, the HRA or the City has entered into the folio�ving contracts: (i) Activity: Construction of Office Tower Developer: Rice Park Associates Cost: $53,535,000 Completion: Au�ust 1, 2000 (i) Activity: Construction of parking r<�unp and retail space on Block 39 Contractor: to be bid Cost: $19,485,650 Completion: June, 2000 (iii) Activity: Preparation o£ Phase I Environmental Report Peer Environmental Cost: $14,62� Completed (iv) Activity: Soil Borin� American Engineerin� and Testing Cost: $10,000 Completed (v) Actavity: Survey Stmde Surveyin� Cost: $10,000 Completed (vi) Activity: Appraisals of existing buildings Dwight Dahlen a�id Blake Davis Cost: $12,500 and �16,000, respectively Completed K'\SHARED\GEURS6139arenanf «'pd � -►�Y (vii) Acti��iry: Appraisal of proposed office tow;er as built Towle Companies Cost: � 14,000 Completed (viii) Actir ity: Arena Lease and amendments originally dated JanuaR� 1�, 1998 and related documents Minnesota Hockey Ventures Group LP Activity: Construction of Arena Cost: Approximately S130,000,000 Estimated Completion Date: September l, 2000 VL Descrigtion of other ty�es of deuetopment activities �vhich can reasonablv be esnected to take nlnce within the Block 39 Arena District Proicct De� elopment activities in the District, which may require the expenditure of tas increments, ��ill consist of activities necessary and ancill�u to promotina and masimizine the above goals and focus. Constniction of new buildin�s on Block 39 is expected to conunence during the second quarter of calendar yeaz 1448 and �vill be occupied in the year 2000. The construction of the nz��' arena is expected to commence in 1948 and be completed in the year 2QOQ. VIL Cost of the Project �nd description of the Block 39lArena Redevelonment Ta� Increment District. �Ihe following, as required by Section 469.17�, Subd. 1(�), are estimates of the (i) cost ofthe Project, including administration expenses; (ii) amount of bonded indebtedness to be incurred; (iii) sources of revenue to finance or otherwise pay public costs; (iv) the most recent net taY capacity of tarable real property within the tax increment financin� district; (v) the estimated caphired net tax capaciry of the tas increment financing district at completion; and (vi) the duration of the taY increment financin� districPs existence. A. Cost of the Project, including administrative expenses. The total cost of the Project is estimated at $225,000,000 plus administrative charges in an amount up to 10% of the tax increment expenditures. B. Amount of bonded indebtedness to be incurred. The Cit�� shall be the issuer of one or more series of tax exempt and/or talable general obligation taY increment bonds in 1997 or 1998 in the aggregate approximate amount of $40,000,000 for Block 39. In January of 1998, the City issued its General Obliaation Commercial Paper Notes (the "Commercial Paper Notes") in the principal amoLmt of $33,500,000 to finance a portion of the costs of the Arena. The Cit;' anticipates Issuing approximately $7�,000,000 of Taxable Sales Tax Revenue Bonds, to which taY increments will be pledaed as credit enhancement, to finance a portion of I:�\SHARED�.GEURS1bi39arenauf wpd aa_��Y the costs of the Arena and to refund a portion of the Commercial Paper Notes. The Cit; ma��, afrer the initial isuance of bonds, issue cefundin� bonds for purposes of refinancin� such bonded indebtedness. C. Sources of reti enue to finance or othencise pa}' project costs. The follo��in� are the likely sources for fundina the total Project, including the tat increments ��ltich �rill be pledged to the bonded indebiedness: Tas Increments Tar increments ace anticipated to equal $1,605,680 annually. All tax / increments witl be first pledged to the pa} ment of debt service on the bonds described in B above. ii. Ciri� of Saint Paul Tlie City of Saint Paul is expected to pro��ide other fimds in the approximate amount of $1,4>0,000 of ramp revenue plus an approximately $5,000,000 supplemental xeserve from (x) the World Trade Centex Ramp; (y) Dishict EnergS, and (z) proceeds from the restnich�rine of the Do«ntown Tax Increment Debt, or other available HRA resources. The City will also use revemies from the local sales tax to pay debt serc°ice on the approximately $7�,000,000 of Sales TaY Revenue Sonds issued to finance the Arena. iii. State of Minnesota The 1993 Legislature approved a state loan of �65,000,000 to finance a portion of the Arena. i� . Investment income Certain interest eamin�s from the taY increments and other City funds wiil be a source of revenue to pay project costs. A current estimate of such eamings is not available. c. Develo�er Financine a. Block 39. The developer of the office to�cer will contribute 10°to of the total development cost of the office tQweL. and wilt obtain financing for the remainder of the cost of construction of that building above $�3,200,000, b. Ar�ena. Minnesota ��'ild, the operator of the nen� Ri� erCentre azena, wiil contribute annually $6,000,000-�9,641,663 dollars to retire the state loan (described under iii, above) and City revemie debt for the first 2� yeazs of the azena lease. The Minnesota Wild will provide f�iSHARED\GEURS\bLi9arenavf opd aa-��Y under an amended lease annua] Letter of Credit of �6,000,000 to $8,000,000 dollars to secure the City's reaenue debt for the new azena and State loan. A. The most recent net tas capacih� of tazable real propert}' ��ithin the tax increment financing district. At January� 2, 1997 the total taY capaciry of propzrty parcels to be included in the Distrlct was $196,391. The arena site and Clel eland Circle property is tax-exempt. Of the $�,511,100 total base market value, $2,2�6,400, or 50% of the total, is �ttributable to buildin�s on Block 39, all of �vhich «ill be removed in connection with the development pursuant to this Plan. The �2,2�4,700 of market ��alue attributable to the land is assumed to remain constant. The original ta� capacin' and Tax Rate are calculated in accordanee �4ith Minnesota Stahires. Sectinc1469.i74, SubcL 7 atzd Section 469177, Subd. 1. E. The estimnted captured net taz caplcity� of the tas increment financing district at completion. The construction of the office tower is expected to result in 382,000 squaze feet of new construction with an aegregate assessed ��ahie of S35,OQQ000. The parking ramp �vili have a mazket value of approximately $16 million but wili be e�empt from tax since it wi11 be owned by the City. The RiverCentre arena �vill cost approximately �150 million but will be exempt from property taY since it �vill be owned by the HRA or the City. Assuming land values remain constant, the increase in mazket value is estimated at $31,37�,00�. Applying a 3.4% tax capacity rate results in estimated caphired tax capacity of approximately $1,066,7�0 in the year 3001, the year followina expected completion of construction of buildin�s. This captured ta�Y capacity is calcuiated in accordance �vith Minnesota Stahrtes, Section 469.174, Subd. 4 and 469.177, Subd. 2. F. The duration of the tns increment fan�ncina districYs existence. Request for certification of the District �vas made in 1997. The first ta� increments are anticipated to be generated for taYes payable in the year 2000. The duration of the District wiil nm 25 yeaLS from the first receipt b} the City of tax inerements, which ��Zll be through calendar year 202�. The HI2A does, however, reserve the right to decertify the District prior to the le�ally required date. VIII. Alternate esfimates of the impact of the tax increment financina on the net tat capacities of all taxing iurisdictions. The tatiing jLU in which the District is located in �vhole or in part aze as follows: a. Independent School District �62�, whose boundaries aze coterminous «ith those of the City of Saint Paul. f: \SH9RED�GEURS' «pd aq -13Y b. The County of Ramsey, the total mazket �alue of «t�icli the Cin' of Saint Paul contributes approximatel}� 4�%. c. The Housin, and Redevelopment Authority of the Citc of Saint Pau1, ��hose boundaries are coterminous �cith those of the City of Saint Paui. d. The Port Authorit}� of the Cih of Saint Paul, ��hose boundaries are coterniinous ��ith those of the City' of Saint Paul and ��liose po�cers to le�} and use propert} tases are limited. e. \4etropolitan authorities, such as the Metropolitan Council, Metropolitan Airports Conmlission, Metropolitan Waste Control Conmlission, and the Metropolitan hlosquito Controt District. Of these, only the Metropolitan Coimcil and the Ivietropolitan Mosquito Coutrol District currently 1e�ti tases on real estate. The HRA is required by Minnesota Statutes Section 469_17�, Subd. t(a)(6) to make statements relati�e to the alternate estimates of the impact of the tas increment financing ou the net ta� capacities of all taring jurisdictions in �vhich the tar increment financing district is located in whole or in part. Impact on Tasing Jurisdictions Under the assumption that tUe estimated captured ueT tat capacit} ti�'oulcl be avaitable to the tavinQ jurisdictions �vithout creation of the District, creation of the District �cill serve to deny these taxin� jurisdictions the taxes from the captured net tax capacit}• in the amotmt estimated in Tabie 1 below. Note that a�ortion of flie District to be created is currentiv alreadv within an e�istino TIF distriet which expires in 2003 Therefore, the creation of this ne�v District wi11 denv the tarind iurisdictions those taxes onlv from the vears 2009 to 2025. The portion of the Aistrict that is not alread}• within an existing TIF District does not contain any real property which is subject to ad valorem taxes. Table 1 Ta�irts Jurisdic[ion Cin of St Paul Ramse� Count� School Distnct °62� Other Curzent T.C. Rauo Percent 35232 23 4 40 Z00 26.6 69219 4S 9 6.1�1 4.1 li0802 100 Estimated Annual Caoturzd Increment 376.-131 427.909 73833� 65.9�6 1.608.630 Loss to T�.�me Iurisdictions Present-2009 2009302a 0 6.022,896 0 6.8-46.54�F 0 l i 8I4.14J 0 I.OSS:l96 0 �5.733.880 EC \SFL�RED`.GEURS'�bl39arznahf «pd I � q9 -I�Y Ih. Studies and analti'sis used to determine need for tas increment financinQ. The HRA and the Cit} hace determined that the proposed rede�elopment of the Block 39lArena area �could not reasonabl}� be ehpected to occur solel}' throu,h pricate investment �� ithin the reasonably foreseeable future and that the increased market ��alue of the site that could reasonably' be expected to occur ��ithout the use of ta� increment financina �rould be less than the increase in the market �alue estimated to resuit from the proposed development after subtracting the present value of d1e projected ta�: increments for the masimum duration of the district pemiitted b}� the pl'u1. The HRA and the Ciry made this finding in resolutions adopted on September 24, 1997 and September 24, 1997, respectivety based on data collected and presented to the Board by HRA staff. The sTUdies and analyses used to make the detemiination that tlie proposed development in the opinion of the CitS� �vou(d not reasonabi} be e�pected Co occur through pri��ate investment �� ithin the foreseeable fuhire, and therefoee the use of tas increment is deemed necessary, are as follo�vs: The Greater Saint Paul Buildin, O��ners and Mana�ers Associations 1996 Annual Office Marketing Report indicates that the Net Rate foc Class A oftice space ranges from a lo��' of $8.10 to $1450 per square foot. This stud}� demonstrates that in order to provide the developmeiaC of competiti� e Class A office space, there neecls to be public financial participation. The To�cle Report's 1996 Office Market Update also substantiates the market forces drivina the lease rates. The Tas Increment Financins for the office building matces it possible for the City�1HRA to purchase the land in order to satisfy the demand for parking demonstrated by the Parking Shidy. X. Identification of all narcels to be included in the District. Attached hereto in Appendix A is a list of the Property Identification Numbers (oi le�al descriptions) for a11 properties to be included in the District, a map sho�rino the Seventh Place Redevelopment Project area (as most recenth amended), the District a�id the existins properties, and a le�al description identifyins the boundaries of the District y XI. District administration and annual disclosure. Administration of the District wi11 be the responsibility of the Cit�� of Saint Pau1. Tax increments �vill be deposited into interest bearing accounts separate and distinct £rom other funds of the City. Tax inerements n.ill be used only for aetivities described in this tax increment plan. The Cit�� vill report annually to the State Auditor, county boazd, school board and Department of Re��emie reoardina activities in the District as required by Section 469.17�, subdivision 5 and subdivision 6 and will include information �vith regard to the District in the data necessary to comply with subdi� ision 6a. «'ith regard to the local contribution as k:-`SP{:1R[DAGEURS\6139urenanft�pd 1 � �,-i�� discussed in Section XIX, the Cin �rill file necessary reports as required b} the Department of Re� enue. 3tiII. �Iodifications to District In accordance «�ith Minnesota Statutes, Section 469.17�. Subd. 4, any reduction or enlar�ement of the �eoarapluc arza of the Project or ta< increment financin� district; increase in amouut of bonded indebtedness to be incuned, includin� a detennination to capitalize interest on debt if that detecniination ��as not a part of the oriQinal p1an, or to increase or decrzase the amount of interest on the debt to be capitalized; increase in the portion of the captured tas capacity to be retained by� the Cit} ; increase in total estimated ta� increment expendiriires; or designation of additional propem° to be acquired b} Che City shall be appro�'ed upon the notice and afrer the discussion, public hearino �uid findin,s required for approval of the originll plan. The geographic uea of a tas increntent financino district ma}' be reducecl, but shall not be enlarged after five yeus followin� the date of certification of the orijii�al tax capacity by tl�e counn' auditor. XIII. Administrative Espenses In accord<utce �vith Minnesota Stahrtes, Section 469.174, Subd. 14; and Minnesota Stahrtes, Section 469176, Subd. 3 administrative expenses means all expendihues of an authority other thln amounts paid for tlte purchase of land or amoui�ts paid to ca�tractors or others providing ntaterials and services, inchtdin= architectural and en,ineexin6 sen�ices, directly connected ��ith the physical devetopment of the reat property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District or amounts used to pav interest on, fiuid a reserve for, or se11 at a discount bonds issued pursuant to Section 469.178. Administrative eYpenses also include amounts paid for services provided by bond counsel, fiscal consultants, and plannin� or economic development consultants. Administrative expenses of the District will be pald from ta� increments; provided that no ta� inerement shall be used to pay anv administrative expenses for the Project Wrlvch exceed ten percent of the total tax inerement expendit�ires authorized by flze ta� inerement financina plan or the total tas inecement expendittires for the Project, ��hichever is less. Pursuant to Miiu�esota Statutes. Section 469.176, Subd. 4h, tas incrzments may be used to pay for the county's achial administrative etpenses incuned in connzction �eith the District. The cotmty may require payment of ttlose expenses by Febniary 1� of the pear following the year the expenses �ti ere incurred. XIV. Necess�n� Imnrovements in the District No taY increment shall be paid to the City afrer three yeazs from the date of certification of the ori�inai net ta� capacity by the Cotmn� Auditor unless ��'itlun the tluee-y�ear period: (1) bonds hace been issued in aid of the Project pursuant to Section 469.178 of the TIF Act or any other la�a, except revemie bonds issued pursuant to Minnesota Statutes, Section 4691�9 to 469.16�; K �SI4d2GD,G EU2S'.bt39arenatif �� pd I � �-�3r (2) the City� or HRA has acquired prapem' �� itl�in the District; or (3) the City or HRA has constructed or caused to be constructed public improvements «ithin tlie Distnct. The bonds must be issued, or the Cin' or HRA must acquire propertv or constnict or cause public in�pro�ements to be constructed by approsin�atel;r September 1, 20�Q. Pursuant to Minnesotl Stahrtes, Section 469.176. Subd. 6, if, after four years fi�orn the date of certificatiors of dae original tat cnyacity of t{ae tar incr�en7entfinancing dish•ict pznserant to Nlrnnesota Stntertes. Section -F69.177, no dernolition, rehnbilit�uioji or renoration of property or otlzer site prep�aration, inck�ding qu�rlified inzprorement ofa street adjacent to a pm�cel but not instcdlation of T�tilary seivice incle{clirig seuer or �vater systen:s, has l�een eo»rn�enced on a�arcel locateti x'ithni a taz inerernent fanancing clistrict b} the aarthoriry or� by the otirr7er� of the prn in accorrlance irith the tax iner•ement fin�rncing plan, no aclditto3ial tcn i�scre�rient rncry� he takerz from thnt purcel and the original t�cr capaciry of that perr•cel shall be excluded fr�om the original t�c� cn�acity of the tar increr�rent fintrncing clistrict If the aidhoriry o�• tlae owner of the 1�arcel si�bsec�a�entl}� commences demolltion, rehabilitation or renovution or• other site j�repartrtio�� o�r thnt j�arcel incltrcli��g intp�ronement of a street adjacent to that pm•cel, iiz crccordaszce uitFz 1Fie !cu iricrenzent financfng plan, the nuthoy�ir�� shall certifi ro tl2e co<<nty nuditor in the nnnual disclosirre report thnt the actn-iry has conmaencecl. The cozrnty nuclitor shall cet�t� the tca capaciry thereof as nzost recently cert�ed by the commissioner of revenarc and add it to the original t�n capaciry of the tctx increment � financing district The county� auditor• ntust enforce the pYOVisions of this subdivision.. For pmposes of this subdirision, c�zral�ed inzprovements are lirnited to (1) construction or- opening of a neu street, (2) r-eloccrtion of a street, ancl (3) s��bstantial r•ecorrsh�r�ctiott or r•eba�ilc�ing ofan existing str�eet. The City or HRA or a property owner must be�in m�il:in� improvements to pazcels within the District by approximately September. 2001. Pursuant to Minnesota Statutes, Section 469.1763. Subd. 3, re�enues dem�ed from ta� increments are considered to liave been spent on an activity within the District only if one of the follo�vin� occurs: Befof�e or' tirithin fire years crfter cert�ccrtion of the Distr•ict, the r�eventtes are cictt�ally Paid to a thir�d par�ry irith respect to the actiti�iry; Bonds, the pr�oceeds of tia hich mirst be irsed to fznance the activi/}�, are issued and sold to a third pnf�ry befor•e or• iridii�z fii•e }'��rrs crfter certifzcation of the District, the revenz�es aee spent to repc�y the Bonds, t�t�d the proceeds of the Bonc�s either �rre, on the clnte of issuance, reasona6ly expected to be spent before the enc� of the latter of (i) the fzve yecrr periocl, or (ii) a reasonab7e temporary period u ithiri the meaning of the I: ASHARED'.GHURS`6139urenavf «pd �' q4-I�Y use of that tef•nt undee Section 1-G8(c)(I) of tl�e L�tenaal Re�•enue Code, or deposited in a rerrsonably t•equirecl rese�l'e or f'eplacentent firtzd; 3. Binding conlracts with a third pnt are e;7terecl into for• perfor•nxa�ce of the actiriry before or irithi�z five yern�s after cer�tification of the Distr�ict crnct the rei•enues are spet7t zrnder the contr•achral obligation; or -1. Costs isith res�ect �o the actiriry �rre pnid before or uithin fire yems after certifrcation of the Dislricl m7d the revenues trre syent to reirnburse cr party for pcp�rnent of tlze eosts, incluclir2g interest on unrein:bztrsecl ec�sts Therefore, one of the above four events nnut occur b} approximatelti September, 2002. �V. Use of Tni Increment All reveuuzs derived from tas increment shatl be used in accordance �� ith this ta� increment financin� plan, and pursuant to Minnesota Stahrtzs, Section 469176, Subdivisions 4 and 4j. XVI. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes, Section 469.177, Subd. 4, the City has reviewed the area to be i�iduded iu the Distriet and has uot found properties for �cl�ich builciing pemiits have been issued durin� the 18 months inunediately precedin� appro` al of tlle Plan by the City. XVIL Escess Ta� Increments Pursuant to Minnesota Statutes, Section 469.176, Subd. 2, in any year in which the tax increment esceeds the amount necessary to pay� the costs authorized by the tas increment plan, includin� the amoLmt necessary� to cancel any tax levy as provided in Minnesota Stahrtes, Section 475.61, Subd. 3, the City shail use the excess anioLmt to do any of the follo�� in�: 1. prepay the outstanding bonds; 3. discharge the pledge of tax increment therefor; 3. pa� into an escro�� account dedicated to the payment of such bonds; or 4. retum the escess to the County Auditor for redistribution to the respective taxing jurisdicCions in proportion of their taY capacity rate. XVIII. Local Contribution Requirement For tax increment financing disTricts which request certification after June 30, 1944, Minnesota Statutes, Section 2731399, Subd. 6(d) provides that the City mac be exempT from local �overrunent aid or homestead and aaricultural credit aid penalry if the HRA and/or the City makes a local contcibution to the Project equal to fice percent of the ta,e increment. The HI2A and the City elect to make the local contributions in lieu of the state aid penalty�. Five percent of the firture ��a1ue of the tat increments espected fo be coiVected from the District, is approximately [$845,000}. The HRA and the City will K \SHAR�D`.GEURS\6139arennh f t� pd � � 9�i-13Y make an up-front local contribution (rather than a yearly contribution) in excess of that amoimt. The loca] contribution is expected to be paid prior to August l, 2000. Pursuant to Section 2T.1399, 5ubd. 6(d)(2), if the HRA or City fails to make the required contribution for an}� year, tlie state aid reduction �ti'ill appl}� for that }ear. The state aid reduction ��ill be equal to the greater of (A) the required local contribution (�% of tax increments collected that } ear) or (B) the amount of the aid reduction that applies tmder Subdivision 3 of Section 273.li99. XI1. Fiscal Dis�rities The Cit} and the City� have elecfed to compute Fiscal Disparities contcibution for the District in accordance w'ith Section 469.177, subdivision 3. paragraph a. 3i�. Requirements for Aareements �FiEh De� eloner. Pursuant to Minnesota Statutes, �469.176, subd. �, no more than 2�%, bp acreage, of the propert}' to be acquired in the District as set forth in the Taz Increment Financino Plan shall at any time be owned by the HRA oe the City as a result of acquisition with the proceeds of boncis issued pursuant to Section 469.178, without the HRA or City having, prior to acquisition in excess of 2�% of the acrea`e, concluded an agreement for the development or redevelopment of the property acquired and ��hich provides recourse for the HRA or City shotild tlze cieveloputeut not be completed. XXI. Assessment Aareement. Pursuant to Minnesota Statutes, §469.177, subd. 8, the HRA or City may enter into an a,reement in recordable form with the Developer of propem' �cithin tlie District ��hich establishes a minimtmi market value of the land and compieted impro��ements for the duration of the District. The assessment agreement shall be presented to the assessor �vho sh111 re� ie�r� the plans and specifications for the improvements constnicted, revie��' the market � alue pre� iousfy assigned to the land upon �vhich the impro��ements are to be constructed and. so long as the minimum market value contained in the assessment agreement appears. in thejudgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market calue a2reemeut. kXII. De� elopment and Job Creation. To the estent applicable, the HRA ar City agrees to compl}' «ith Minnesota Statutes, § 1163.991, �vhich states that a business recei� ing state or local govecnment assistance for economic development or job groti`1h purposes, includina tas increment financino, must create a net increase in jobs and meet waQe level goals in Minnesota ��ithin two years of receivina assistance. 1: �\SHARCD\G CURS`613 )arenat� ( �� pd 1 � aq -i�� APPE\iDIX A [list of parcels in neti� tas increment district, map of district and map of project areaJ f:�\$HARED��.GEURS\6139arenanf ��pd 16 a9-��' � � � � � 3 � � � � � � vo� �4% � � � � e� � a� � � �. v .� �. � � � � � � i. U � X C3 � c � � � O � a � � w � � c � � s, eYa � � � � U � � Ci C � � a u c Y. CC �°' c aa � p � � -z� � � �- U Q � �C � (6 � C � Q � U � O Q_ � C (�J � C1. O W � N � � � � U � � � .�-. � � > Q3 (� U � [� � Qi Qi � U C Y. f6 � � Q) � � O C> � � � @� � QJ U � � L a- C � > aJ (r � 1 � �! q,9 • 13 Y lnterdepartmental Memorandum CITY OF SAIVT PAUI. DATE: January 27, 1999 TO: Shari Moore, Depury City Clerk Nancy Anderson, Cotmcil Research F120M: Bob Geurs, PED � I RE: Public Hearing Shari, attached is a public hearing notice and map that needs to be published for amending a taY increment financing plan for Block 39/Arena Tax Increment District �vhich is part of the legal requirements for the issuance of City financing for the RiverCentre Arena �vhich will be considered on February 10, 1999. Also attached is a copy of the amended TIF Plan for the City Clerk's office. When published, please fonuard a copy to mz of the notice as it appears in the legal ledger and ne�vspaper. Nancy, the Office of Financial Services will route two City Council Resolutions authorizing the Bonds and related documents for the RiverCentre Arena financin�. There also �vill be t�vo HRA resolutions for Februar}• 10 approvin� TIF Plan and HRA entering into a Pizdge Aereement for the Arena financing. Thanks for your help. RBG/lle attachments cc: Joe Reid Shirley Davis \�Ped.SYS3SHARED',GEURS`mooreandeaonmemo.apd a9-i��' NOTICE OF PUBLIC HEARiNG ON AMENDMENTS TO THE TAX INCREMENT FINAiv`CING PLAI�T FOR THE BLOCK 39/ARENA REDEVELOPMEI`'T TAX NCREMENT FINA?��CING DISTRICT NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Paul, Minnesota (the "City") ��ill meet in the City Council Chambers, City Hall, IS West Kellogg Boulevard, Saint Paul, Minnesota, on February ]0, ]999, at 5:30 p.m., or as soon thereafrer as the matter may be heard, for the purpose of conducting a public hearing on the proposal of the Housinj and Redevelopment Authority of the City of Saini Paul (the "Authority") to amend the Tas Increment Financina Plan for the Block 39/Arena Redevelopment Tas Increment Financing District located �cithin the Seventh Place Redevelopment Project Area (the "Redevelopment Projeet Area"). A draft copy of the proposed amendments to the Tax Increment Financing Plan, alon� with a11 attaclunents and exhibits thereto, �vil1 bz acailable for public inspection at the office of the City Clerk, Room 170, City Hall, and with the Authority, at the offices of the Department of Planning and Economic Development, City Halt Annex, 13` Floor, 25 �Vest Fourth Street, Saint Paul, Minnesota, durin, regular business hours. A map indicating the boundaries of the Tax Increment Financing District and the Redzvelopment Project Area is set forth belocv. A11 persons interested may appear and be heard at the time and place set forth above. CITY OF SAINT PAUL (s/ Fred Owusu Citti Clerk \Ncd`sysZ�SENRED'�,GEURSVblock39publichrgnotice apd °lg-��P' � � � ✓ � � � � � � � .� r6 L � � .� � � �.tl.� � L� U .� � N Q � C � � � U C Y. � F- .r � W � � � Q) l c� � w CY c3 C � Q � m U O CD U .� u� � C G: � m L �i � L tU f � a� E o_ 0 U � 4� N C U O � i;��( v G (6 'C1 � � O (X'i U a 'o � � � m � a 0 m � N 'r W CC a� U � � � C N a W C� U .` N Q C G � G? Y U � � � c m E a 0 c� C7 � C� G' e� U r C L <- C � � U� � � �. I � q� � �� NOTICE OP PUBLIC HEARING ON AMENDMENTS TO THE TAX INCREMENT FINANCING PLAN FOR THE BLOCK 39/ARENA REDEVELOPMENT TAX INCREMENT FINAI3CING DISTRICT NOTiCE IS HEREBY GIVEN that the City Council of the City of Sanat Paul, Mianesota (the "City") will meet in the City Council Chambers, City Hall, 15 West Kellogg Boulevard, Saint Paul, Minnesota, on February 10, 1999, at 530 pm., or as soon thereafter as the matter may be heazd, for the purpose of conducting a pubiic hearing on the proposal of the Housing and Redevelopment Authority of the City of Saint Paul (the "Authority") to amend the Tax Increment Financing Plan for the Block 39/Arena Redevelopment Tax Increment Financing District located within the Seventh Place Redevelopment Pro}ect �rea (the "Redevelopment Project Area"). A draft copy of the proposed amendments to the Tax Increment Financing Plan, along with all attachments and exhibits thereto, will be available for public inspection at the office of the City Clerk, Room 170, City Hall, and with the Authority, at the offices of the Department of Planning and Economic Development, City Hali Annex, 13`" Floor, 25 West Fourth Street, Saint Paul, Minnesota, during regular business hours. A map indicating the boundaries of the Tas Increment Financing District and the Redevelopment Project Area is set forth below. Al1 persons interested may appeaz and be heard at the time and place set forth above. Dated 7anuary 28, 1999 Shari Moore Deputy City Clerk (7anuary 30, 1999) �, � �� u � � < m � r. 7 � A1 Q � � rD � ro � m 0 � � m � .... � v x � � m � m � � � � � � � i�Qj � 0 � � s� � m � < m 0 '� � ro � � � X 3 � � ro � m � C � n ci qq _13�' � ro c � � 3 � � Q � '.YI m n. ro < m 0 v � m � � � 0 ai n m 0 � � � � � � 0 n w � D m � � ,�.7 ro S� ca t ro 0 � 3 � � .� � v x � � m � :� � .,. � � � C)� --1 - '� � �.. � � �� a-r � � 3v � �. 'O � � � 0 G � � � � � ORIGiNAL Council File # l� " � JO Green Sheet # �O J L-�..� RESOLUTION CfTY OF SAINT PAUL, MINNESOTA Presented By Referred To 33 Committee: Date RESOLUTION APPROVING THE AMENDED AND RESTATED TAX INCREMENT FINANCl23G PLAN FOR THE BLOCK 39/ARENA REDEVEL,OPMENT TAX INCREMENT FINANCING DISTRICT 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul (the "AUthority"1 has heretofore adopted a resolution establishing the Block 39/Arena Redevelopment Tax Increment Financing District (the "Tax Increment District") and approving a tax increment financing plan therefor (the "Tax Increment Financing Plan"). WHEREAS, the Authority has hereto determined that it is necessary and desirable to amend the Tax Increment Financing Plan in certain respects and has theretofore had prepared an Amended and Restated Tax Increment Financing Plan. WHEREAS, the Authority has performed all actions required by law to be performed prior to the adoption of the Amended and Restated Tax Increment Financing Plan, including, but not limited to, notification of Ramsey County, Independent School District Number 625 and the County Commissioner having jurisdiction over the property included in the Tax Increment District, and requesting the City Council to approve the Amended and Restated Tax Increment Financing Plan following the holding of a public hearing thereon. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the '�Council��), as follows: Section 1. Findinc�s by the City for the Approval of the Amended and Restated Tax Increment Financing Plan for the Block 39/Arena Tax Increment Financing District. 1018759.1 99 -13g 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 �i 72 73 74 75 76 77 78 79 80 ai 82 1.01. The ratifies its findin public interest and Minnesota Statutes, Council has heretofore found and hereby g that the Tax Increment District is in the is a"redevelopment district" pursuant to Section 469.174, Subd. 10. 1.02. The Council has heretofore found and hereby ratifies its finding that the Tax Increment District, and the approval of the Amended and Restated Tax Increment Financing Plan relating thereto, are intended and, in the judgment of this Council, the effect of such actions will be to provide an impetus for redevelopment and to further the public purposes and accomplish certain objectives as specified in the Amended and Restated Tax Increment Financing Plan which is hereby incorporated herein. 1.03. The Council has heretofore found and hereby ratifies its findings that the proposed development or redevelopment in the Tax Increment District, in the opinion of the City, would not occur solely through private invesCment within the reasonably foreseeable future and that the increased market value of the taxable property within the District that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Amended and Restated Tax Increment Financing Plan and, therefore, the use of tax increment financinq is deemed necessary; that the Amended and Restated Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Tax Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. Section 2. Approval of the Amended and Restated Tax Increment Financing Plan and Further pocumentation. 2.01. The Amended and Restated Tax Increment Financing Plan, as presented to the City Council on this date, is hereby approved, and shall be placed on file in the office of the City C1erk. 2.02. The sta£f of the City, the City's advisors and legal counsel are authorized and directed to cooperate as necessary with the Authority in the implementation of the Plans 1018759.1 4�-13�' � and for this this Council resolutions, necessary fo purpose to negotiate, draft, prepare and present to for its consideration all further plans, documents and contracts which may be deemed r this purpose. Requested by Department of: f"/NF�NCI64t- J��//LES g ��e-�-. � � Adopted by Council: Date ��_ ( �� Adoption Certified by Council Secretary By: a - � Approved by Mayor: a e g 3y: � �+ Form Approved by City Attomey By: �� . :PARTMENilOFFICE/COUN( fice of Fnancial Services �q_��Y oevnnn�xr omccroa No 63227 amcouca AGENDA BY (DATE] ASSIGM ♦ \ � amARORMEY ❑ aI't<LERR NUMBERf-0R RWiiNG ORDFR � F�+n11C1atsFRV�CE40IR. ❑ NUrICI�LaErtY�ACGf6 � WYOR�ORA541STANf� � ❑ TOTAL # OF SIGNATURE PAGES 1_ (CUP ALL LOCA710NS FOR SIGNATURE) attached r�oluHo� approves the Amended and Resfated Taz Increment Financin9 P�� fw the Block 39/Arena RedevelopmeM Tax Inerement F(rnruing Didrict. PLANNING CAMMISSION CIB CAMMfTfEE CIVIL SERVICE COMMISSION Has th�s persorvTirtn ever vroAretl u�Mer a cont2cl kr this departmenC7 YES NQ Has this persoNfirtn ever been a ciry employee? YES NO Does this persoMmm possess a skifl �wt iwrmally posseased by any curteM city em�oyee? YES NO Is this perso�rm 8[argeted vendo(t YES NO resolution 1s necessary for Ne pledge ot taz incmments from the $33,500,000 short tertn Commercial Paper wing to the long tertn debt financing for the Arena, not to exceed $75,000,000. term varia�le ra[e Qna�cing will 6e replacetl by long tertn fited iMeres[ tate tlebt. ihe City will not be able to take atlraMage of the historical low interest rates arailable in todays markets. fOTAL AMOUNT OF TRANSqCTION S 'UNDING SOURCE ,�9 I GREEN SHEET ACTNI7Y NUMBER ,� <_ . S:;'- �"- i.. `� _=j �y =,.�'�r �i.��w i t=._ V (CIRCLE ON� YES NO INANqpy �NFORNAiION (EXPWI� q9-138' HOUSING AND REDEVELOPMEtiT AUTHORITY OF THE CTTX OF SAINT PAI3L A�iENDED AND RESTATED TAX INCREN1ElVT FINANCING PLAN FOR BLOCK 39/ARENA REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT I. Introduction A. Background The Housin� and Redeaelopment Authority of the City of Saint Paul (the "HRA ") proposes a plan for the redevelopment of property in the City consistin� of acquisition of land, demolition of structures, and the construction of (i) a 1,07�- stall parkin� ramp and retail space (ii) an approximately 382,000 square foot office tower, and (iii) an approximately 20,000 seat,arena for professional hockey games and other large entertainment events, as a replacement of the existing RiverCentre arena, a11 on an approximateiy 12S acre site located in the central business district of downtown Saint Paul (collectively, the Project"). On November 30, 1978, the HRA approved the Seventh Place Redevelopment Plan and the Project Financing Plan therefor by Resolution No. 7 8-1 113 0-1. Subsequently the City Council of the City of Saint Paul (the "Council") gave its approval by Resolution C.F. No. 2721 �5 adopted on December 5, 1978. By Resolution No. 81-11/�-8 adopted November 6, 1981 and Resohition No. 83- 5f25-3 adopted May 2�, 1983, the HRA adopted modifications to such plans which did not require approval of the Council, and by Resotution No. 82-1J28-11 adopted amendments to the Redevelopment Plan and Project Financing Plan, which amendments �vere approved by the Council by Resolutions C.F. No. 278173 and 278670 adopted February 4, 1982 and May 1 I, 1982. The plans were again amended by Resolution C.F. No. 89-20?8 adopted by the Councit on November 9, 1939 and the HRA on November 9, 1939 by Resolution No. 89- 11/9-1. The plans were most recently amended by Resolution C.F. No. 97-668 adopted by the Council on May 28, 1997 and by Resolution 97-5/28-9 adopted b} the HRA on May 28, 1997. B. Creation of Block 39/Arena Redevelopment Tax Increment District This tax increment plan relates to the creation, under Minnesota Statutes Section 469.174, Subd. 10 of the Block 39 /Arena Redevelopment Tax Tncrement District (the "District"). C. Need and Public Purpose It is necessazy that the HRA exercise its powers under state la�v to develop, implement, and finance a program designed to encouraoe, ensure and facilitate the development of the propert�. This development will further accomplish the public purposes specified in this paragraph. K'\S HAREDIG E URS`,6139 arenan F wpd 99-138` On June 2, 1997, the city finalized a proposal to demolish the existin� Cicic Center arena and construct a new RiverCentre arena to be the home venue for a Iv'ational Hockey Lea�ue franchise, and the City Councit has determined that those improvements �vill be required to obtain for the City the benefits of a major league sports franchise playing its home �ames in that location. As a result of the Downtocrn Saint Paul Parking Study (the "Parkin� Study") conducted by SRF Consultin� Group Inc., a deficit of appro�imately 1,300 parking spaces �c•as identified. The parkina ramp project proposed for Block 39 ��ill add 1,07� parking spaces to the do�cnto�cn core. The March, 1997 draft plan for the Saint Paul Development Frame�vork identifies the Applebaum's block (which is Block 39) as a key redeve(opment opportunity. II. Obiecti��es of the HRA for the improvements in the Block 39/Arenn District area. A. Provide job opportunities for Snint Paul residents. The employment base of the City will immediately expand by more than 800 with the completion of the office building on Block 39, and the proposed tenant for the office tower is expected to continue to grow, adding ne�v jobs to the City�. Construction of the new RiverCentre arena �vill pro��ide newjobs for maintenance and operation of that facility, as �vell as additional jobs arisin� from concessions retail sales and other activities relating to events held in the arena. B. To redevelop underused property. Block 39 is a site that has been underutilized for many years. The majority of the area comprising the site has been used for small businesses. Ne�v commercial, cultural and recreational investments are jeopardized by declinin� employment opportunities from a variety of new causes, increased competition from the suburbs and downtown parkin� problems. The existing Civic Center arena is both structurally deficient and functionally obsolete. It cannot practically be used as a home venue for the professional hockey franchise awarded to the Saint Paul metropolitan area. In order to take advantage of the economic and development opportunities offered by the addition of the hockey team to the activities available in dow�nto��n St. Paul, the existing arena must be replaced. The new arena must be provided largely throu�h public initiative and investment. In order to protect past investments and remain competitive, the Block 39IArena Redevelopment Tax Increment Financing District needs to be created, to provide additional public investment to bolster employment opportunities, to solidiry downto�vn as a cohesive office retail center, to provide a home venue for the professional hockey team, to improve pedestrian circulation and to develop accessible parking. IC:\SH.4RED\GEURS`�bG9arenanf �cpd qq-��F� C. Provide Public Parking The parking garage to be constructed on Block 39 �cill include approximately 1,07� underground and aboce ground parkin� spaces, approximately [57�] of �vhich will be available for the general public, and help alleviate the doccntoti�n parkin� problems which ha�e heen identified by the Parking 5[udy. D. Ecpand the tax base of the City of Saint Paul. It is expected that the tasable mazket value of parcels an Block 39 will inerease b5 approximately $31,37�,QQ0 once the neGi office buildin� and parking ramp (includin� 20,000 square feet of retail space} is placed in service. This value consists of $3>,000,000 for 382,000 square feet of office space and retail in the office building, plus $57�,000 for 12,�00 square feet of retail in the parking ramp. The existing market value of Block 39 is $4,511,10Q The 1,07� space parl:ing ramp to be built on the block tivill cost approsimatelg $16,560,000, but �vi11 be ta�-exempt since it will be owned by the City. Construction of the new Ri� erCentre arena will not, by itself, increase the tax base of the City because that property is and cvill remain exempt from real property taxes. The economic acti��ity generated by the new arena is expected, however, to increase the taYable value of other prop2rry in its near vicinity, both within the District and surrounding it. E. Remove blight within doticntown Saint Paul. The Block 39 site and other properiy included in the District is located in downtown Saint Paul. Block 39 lies between Wabasha, St. PeYer, Fifth Street and Sixth Streets. The other property extends to and surrounds the site for the new RiverCentre arena plus thz Cle��eland Circle property. The existina buildings will be removed in the renovation process, and replaced with a new publicly-owned parking faciliry, a privately constructed office-building, and a neGV RiverCentre arena, substantially improving downtown St. Paul. III. Classification of the District. The HRA and the City, in determining the need to create a tax increment financin6 district in accordance �vith Section 469.174, fmd that the District is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subd. 10 because (1) parcels consisting of 70% of the area of the District aze occupied b} buildings, streets, utilities or other improvements and (2) more than 50% of the buildin�s are structurally substandard; and these conditions are reasonably distributed throu�hout the geo�raphic area of the District. The District contains 21 parcels of land totaling b34,394 square feet of which 100% is occupied b}� either buildin�s, streeU. utilities or other improvements. A total of 14 buildings are located �vithin the Disttict. Ea�tzmai real estate appraisals (which are on file in the offices I:��S H:1RED\GBURS\bLi9arenanf �vpd q9-I�' of the HRA) of ten buildings located on Block 39 support the conclusion that alt ten of them are structurally substandard. In addition, the District meets the requirements of a redevelopment district pursuant to Minnesota Statutes, Section 469.176, Subd. 4; because at least 90% of the revenues dericed from ta� increments from the District will be used to finance the cost of conectin� conditions that allow�ed desi�nation of the District as a redevelopment district under Section 469.174, Subd. 10 described above. These costs include acquirino properties and adjacent parcels demolition of structures, clearin� of land, and installation of utilities, roads, sidz�calks and parkine facilities for the District. The allocated administrative costs may also be included in the qualifyin� costs. IV. Description of the develonment nroaram for the Block 39/Arenn District. The development program consists of the development of the site to provide a buildable site for the RiverCentre arena and for a parking garage, retail space and an office to�ver on Block 39 in flie District. This will require acquiring land, relocation of certain existing operations, demolition of existing struchires, installation of infrastnicture, constn�ction of the new arena, possible skytivay connections, contracting for professional services essential to redevelopment activities, incurring financing related expenses and fimdin� administrative functions, all as described in more detail below: IC1SH.ARED.GEURS`�bli9arenauf wpd �t -I�' A. Estimated cost of redevelopment project. The estimated total cost of the ne�v activities to be undertaken in the District is $225,000,000, broken do«n as follows: (i) (ii) Block 39 Development Pazkin� Ramp and Retail O�ce Tou $ 40,000,000 55,000,000 RiverCentre Arena' TOTAL : An estimate of the public costs are as follows: Public Costs described in Section IV: �130,000,000 $22�.000.000 giock 39 $4Q000,000 City obligations for Arena 65,000,000 State obligations for Arena $65.000.000 Issuance Expenses and Resources (including Bond Issuance Premium, Underi��riter's Discount, Reserves and related financing costs) TOTAL $170,000,000 10,000,004 $180.000.000 The costs set forth above aze estimates and the amounts allocated to any item may be reallocated amono any of the other items set forth above, provided that the totai principal aznount of the costs for the items specified will not exceed $225,000,000. Incnr costs and expenses connected with financing activities. The City or its HRA shall issue a combination of tax e:cempt and taYable revenue oz general obligation tax increment bonds and revemie or general obli�ation parking bonds to fanance approYimately $120,000,000 of total pro}ect costs.� Bond issuance costs plus other financin� related costs. including reserves, capitalized interest, leQal eYpenses, printin� and undenvriter's discount, aze anticipated to totai approximately' $10,000,000. 1 MN Wild is responsible for cost overnms in excess of $ li0,000,000 �vhich is bein� provided by City and State for new Arena. K:\SH.ARED\GEURS\b139acenanf �vpd aq -�3�' C. Cit} and HRA Annual Budget. At the time of final approval of the issuance of debt, the HRA �ti�ll adopt a more detailed bud�et including a fmancing and spendinQ plan that �� i11 further detail the costs and financin� actiz�ities of A and B above. Additionally', each year as part of the Cit}' and HRA annual budaet process, the detailed budaet may be amended. As part of the annual budget process, the School Boazd and Counry will be contacted to gi�e any comments on the Tae Increment Financing Plan «bich ��ould include oriQinal plans and any annual bud�et amendments. V. Description of contracts entered into at the time of preparation of the Plan Section 46917�, Subd. 1(3) requires this ptan to contain a list of any development activities proposecl to take piace within the project, for which contracts have been entered into at the time of the prepacation of this plan. At the time of the prepazation of this plan, the HRA or the City has entered into the folio�ving contracts: (i) Activity: Construction of Office Tower Developer: Rice Park Associates Cost: $53,535,000 Completion: Au�ust 1, 2000 (i) Activity: Construction of parking r<�unp and retail space on Block 39 Contractor: to be bid Cost: $19,485,650 Completion: June, 2000 (iii) Activity: Preparation o£ Phase I Environmental Report Peer Environmental Cost: $14,62� Completed (iv) Activity: Soil Borin� American Engineerin� and Testing Cost: $10,000 Completed (v) Actavity: Survey Stmde Surveyin� Cost: $10,000 Completed (vi) Activity: Appraisals of existing buildings Dwight Dahlen a�id Blake Davis Cost: $12,500 and �16,000, respectively Completed K'\SHARED\GEURS6139arenanf «'pd � -►�Y (vii) Acti��iry: Appraisal of proposed office tow;er as built Towle Companies Cost: � 14,000 Completed (viii) Actir ity: Arena Lease and amendments originally dated JanuaR� 1�, 1998 and related documents Minnesota Hockey Ventures Group LP Activity: Construction of Arena Cost: Approximately S130,000,000 Estimated Completion Date: September l, 2000 VL Descrigtion of other ty�es of deuetopment activities �vhich can reasonablv be esnected to take nlnce within the Block 39 Arena District Proicct De� elopment activities in the District, which may require the expenditure of tas increments, ��ill consist of activities necessary and ancill�u to promotina and masimizine the above goals and focus. Constniction of new buildin�s on Block 39 is expected to conunence during the second quarter of calendar yeaz 1448 and �vill be occupied in the year 2000. The construction of the nz��' arena is expected to commence in 1948 and be completed in the year 2QOQ. VIL Cost of the Project �nd description of the Block 39lArena Redevelonment Ta� Increment District. �Ihe following, as required by Section 469.17�, Subd. 1(�), are estimates of the (i) cost ofthe Project, including administration expenses; (ii) amount of bonded indebtedness to be incurred; (iii) sources of revenue to finance or otherwise pay public costs; (iv) the most recent net taY capacity of tarable real property within the tax increment financin� district; (v) the estimated caphired net tax capaciry of the tas increment financing district at completion; and (vi) the duration of the taY increment financin� districPs existence. A. Cost of the Project, including administrative expenses. The total cost of the Project is estimated at $225,000,000 plus administrative charges in an amount up to 10% of the tax increment expenditures. B. Amount of bonded indebtedness to be incurred. The Cit�� shall be the issuer of one or more series of tax exempt and/or talable general obligation taY increment bonds in 1997 or 1998 in the aggregate approximate amount of $40,000,000 for Block 39. In January of 1998, the City issued its General Obliaation Commercial Paper Notes (the "Commercial Paper Notes") in the principal amoLmt of $33,500,000 to finance a portion of the costs of the Arena. The Cit;' anticipates Issuing approximately $7�,000,000 of Taxable Sales Tax Revenue Bonds, to which taY increments will be pledaed as credit enhancement, to finance a portion of I:�\SHARED�.GEURS1bi39arenauf wpd aa_��Y the costs of the Arena and to refund a portion of the Commercial Paper Notes. The Cit; ma��, afrer the initial isuance of bonds, issue cefundin� bonds for purposes of refinancin� such bonded indebtedness. C. Sources of reti enue to finance or othencise pa}' project costs. The follo��in� are the likely sources for fundina the total Project, including the tat increments ��ltich �rill be pledged to the bonded indebiedness: Tas Increments Tar increments ace anticipated to equal $1,605,680 annually. All tax / increments witl be first pledged to the pa} ment of debt service on the bonds described in B above. ii. Ciri� of Saint Paul Tlie City of Saint Paul is expected to pro��ide other fimds in the approximate amount of $1,4>0,000 of ramp revenue plus an approximately $5,000,000 supplemental xeserve from (x) the World Trade Centex Ramp; (y) Dishict EnergS, and (z) proceeds from the restnich�rine of the Do«ntown Tax Increment Debt, or other available HRA resources. The City will also use revemies from the local sales tax to pay debt serc°ice on the approximately $7�,000,000 of Sales TaY Revenue Sonds issued to finance the Arena. iii. State of Minnesota The 1993 Legislature approved a state loan of �65,000,000 to finance a portion of the Arena. i� . Investment income Certain interest eamin�s from the taY increments and other City funds wiil be a source of revenue to pay project costs. A current estimate of such eamings is not available. c. Develo�er Financine a. Block 39. The developer of the office to�cer will contribute 10°to of the total development cost of the office tQweL. and wilt obtain financing for the remainder of the cost of construction of that building above $�3,200,000, b. Ar�ena. Minnesota ��'ild, the operator of the nen� Ri� erCentre azena, wiil contribute annually $6,000,000-�9,641,663 dollars to retire the state loan (described under iii, above) and City revemie debt for the first 2� yeazs of the azena lease. The Minnesota Wild will provide f�iSHARED\GEURS\bLi9arenavf opd aa-��Y under an amended lease annua] Letter of Credit of �6,000,000 to $8,000,000 dollars to secure the City's reaenue debt for the new azena and State loan. A. The most recent net tas capacih� of tazable real propert}' ��ithin the tax increment financing district. At January� 2, 1997 the total taY capaciry of propzrty parcels to be included in the Distrlct was $196,391. The arena site and Clel eland Circle property is tax-exempt. Of the $�,511,100 total base market value, $2,2�6,400, or 50% of the total, is �ttributable to buildin�s on Block 39, all of �vhich «ill be removed in connection with the development pursuant to this Plan. The �2,2�4,700 of market ��alue attributable to the land is assumed to remain constant. The original ta� capacin' and Tax Rate are calculated in accordanee �4ith Minnesota Stahires. Sectinc1469.i74, SubcL 7 atzd Section 469177, Subd. 1. E. The estimnted captured net taz caplcity� of the tas increment financing district at completion. The construction of the office tower is expected to result in 382,000 squaze feet of new construction with an aegregate assessed ��ahie of S35,OQQ000. The parking ramp �vili have a mazket value of approximately $16 million but wili be e�empt from tax since it wi11 be owned by the City. The RiverCentre arena �vill cost approximately �150 million but will be exempt from property taY since it �vill be owned by the HRA or the City. Assuming land values remain constant, the increase in mazket value is estimated at $31,37�,00�. Applying a 3.4% tax capacity rate results in estimated caphired tax capacity of approximately $1,066,7�0 in the year 3001, the year followina expected completion of construction of buildin�s. This captured ta�Y capacity is calcuiated in accordance �vith Minnesota Stahrtes, Section 469.174, Subd. 4 and 469.177, Subd. 2. F. The duration of the tns increment fan�ncina districYs existence. Request for certification of the District �vas made in 1997. The first ta� increments are anticipated to be generated for taYes payable in the year 2000. The duration of the District wiil nm 25 yeaLS from the first receipt b} the City of tax inerements, which ��Zll be through calendar year 202�. The HI2A does, however, reserve the right to decertify the District prior to the le�ally required date. VIII. Alternate esfimates of the impact of the tax increment financina on the net tat capacities of all taxing iurisdictions. The tatiing jLU in which the District is located in �vhole or in part aze as follows: a. Independent School District �62�, whose boundaries aze coterminous «ith those of the City of Saint Paul. f: \SH9RED�GEURS' «pd aq -13Y b. The County of Ramsey, the total mazket �alue of «t�icli the Cin' of Saint Paul contributes approximatel}� 4�%. c. The Housin, and Redevelopment Authority of the Citc of Saint Pau1, ��hose boundaries are coterminous �cith those of the City of Saint Paui. d. The Port Authorit}� of the Cih of Saint Paul, ��hose boundaries are coterniinous ��ith those of the City' of Saint Paul and ��liose po�cers to le�} and use propert} tases are limited. e. \4etropolitan authorities, such as the Metropolitan Council, Metropolitan Airports Conmlission, Metropolitan Waste Control Conmlission, and the Metropolitan hlosquito Controt District. Of these, only the Metropolitan Coimcil and the Ivietropolitan Mosquito Coutrol District currently 1e�ti tases on real estate. The HRA is required by Minnesota Statutes Section 469_17�, Subd. t(a)(6) to make statements relati�e to the alternate estimates of the impact of the tas increment financing ou the net ta� capacities of all taring jurisdictions in �vhich the tar increment financing district is located in whole or in part. Impact on Tasing Jurisdictions Under the assumption that tUe estimated captured ueT tat capacit} ti�'oulcl be avaitable to the tavinQ jurisdictions �vithout creation of the District, creation of the District �cill serve to deny these taxin� jurisdictions the taxes from the captured net tax capacit}• in the amotmt estimated in Tabie 1 below. Note that a�ortion of flie District to be created is currentiv alreadv within an e�istino TIF distriet which expires in 2003 Therefore, the creation of this ne�v District wi11 denv the tarind iurisdictions those taxes onlv from the vears 2009 to 2025. The portion of the Aistrict that is not alread}• within an existing TIF District does not contain any real property which is subject to ad valorem taxes. Table 1 Ta�irts Jurisdic[ion Cin of St Paul Ramse� Count� School Distnct °62� Other Curzent T.C. Rauo Percent 35232 23 4 40 Z00 26.6 69219 4S 9 6.1�1 4.1 li0802 100 Estimated Annual Caoturzd Increment 376.-131 427.909 73833� 65.9�6 1.608.630 Loss to T�.�me Iurisdictions Present-2009 2009302a 0 6.022,896 0 6.8-46.54�F 0 l i 8I4.14J 0 I.OSS:l96 0 �5.733.880 EC \SFL�RED`.GEURS'�bl39arznahf «pd I � q9 -I�Y Ih. Studies and analti'sis used to determine need for tas increment financinQ. The HRA and the Cit} hace determined that the proposed rede�elopment of the Block 39lArena area �could not reasonabl}� be ehpected to occur solel}' throu,h pricate investment �� ithin the reasonably foreseeable future and that the increased market ��alue of the site that could reasonably' be expected to occur ��ithout the use of ta� increment financina �rould be less than the increase in the market �alue estimated to resuit from the proposed development after subtracting the present value of d1e projected ta�: increments for the masimum duration of the district pemiitted b}� the pl'u1. The HRA and the Ciry made this finding in resolutions adopted on September 24, 1997 and September 24, 1997, respectivety based on data collected and presented to the Board by HRA staff. The sTUdies and analyses used to make the detemiination that tlie proposed development in the opinion of the CitS� �vou(d not reasonabi} be e�pected Co occur through pri��ate investment �� ithin the foreseeable fuhire, and therefoee the use of tas increment is deemed necessary, are as follo�vs: The Greater Saint Paul Buildin, O��ners and Mana�ers Associations 1996 Annual Office Marketing Report indicates that the Net Rate foc Class A oftice space ranges from a lo��' of $8.10 to $1450 per square foot. This stud}� demonstrates that in order to provide the developmeiaC of competiti� e Class A office space, there neecls to be public financial participation. The To�cle Report's 1996 Office Market Update also substantiates the market forces drivina the lease rates. The Tas Increment Financins for the office building matces it possible for the City�1HRA to purchase the land in order to satisfy the demand for parking demonstrated by the Parking Shidy. X. Identification of all narcels to be included in the District. Attached hereto in Appendix A is a list of the Property Identification Numbers (oi le�al descriptions) for a11 properties to be included in the District, a map sho�rino the Seventh Place Redevelopment Project area (as most recenth amended), the District a�id the existins properties, and a le�al description identifyins the boundaries of the District y XI. District administration and annual disclosure. Administration of the District wi11 be the responsibility of the Cit�� of Saint Pau1. Tax increments �vill be deposited into interest bearing accounts separate and distinct £rom other funds of the City. Tax inerements n.ill be used only for aetivities described in this tax increment plan. The Cit�� vill report annually to the State Auditor, county boazd, school board and Department of Re��emie reoardina activities in the District as required by Section 469.17�, subdivision 5 and subdivision 6 and will include information �vith regard to the District in the data necessary to comply with subdi� ision 6a. «'ith regard to the local contribution as k:-`SP{:1R[DAGEURS\6139urenanft�pd 1 � �,-i�� discussed in Section XIX, the Cin �rill file necessary reports as required b} the Department of Re� enue. 3tiII. �Iodifications to District In accordance «�ith Minnesota Statutes, Section 469.17�. Subd. 4, any reduction or enlar�ement of the �eoarapluc arza of the Project or ta< increment financin� district; increase in amouut of bonded indebtedness to be incuned, includin� a detennination to capitalize interest on debt if that detecniination ��as not a part of the oriQinal p1an, or to increase or decrzase the amount of interest on the debt to be capitalized; increase in the portion of the captured tas capacity to be retained by� the Cit} ; increase in total estimated ta� increment expendiriires; or designation of additional propem° to be acquired b} Che City shall be appro�'ed upon the notice and afrer the discussion, public hearino �uid findin,s required for approval of the originll plan. The geographic uea of a tas increntent financino district ma}' be reducecl, but shall not be enlarged after five yeus followin� the date of certification of the orijii�al tax capacity by tl�e counn' auditor. XIII. Administrative Espenses In accord<utce �vith Minnesota Stahrtes, Section 469.174, Subd. 14; and Minnesota Stahrtes, Section 469176, Subd. 3 administrative expenses means all expendihues of an authority other thln amounts paid for tlte purchase of land or amoui�ts paid to ca�tractors or others providing ntaterials and services, inchtdin= architectural and en,ineexin6 sen�ices, directly connected ��ith the physical devetopment of the reat property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District or amounts used to pav interest on, fiuid a reserve for, or se11 at a discount bonds issued pursuant to Section 469.178. Administrative eYpenses also include amounts paid for services provided by bond counsel, fiscal consultants, and plannin� or economic development consultants. Administrative expenses of the District will be pald from ta� increments; provided that no ta� inerement shall be used to pay anv administrative expenses for the Project Wrlvch exceed ten percent of the total tax inerement expendit�ires authorized by flze ta� inerement financina plan or the total tas inecement expendittires for the Project, ��hichever is less. Pursuant to Miiu�esota Statutes. Section 469.176, Subd. 4h, tas incrzments may be used to pay for the county's achial administrative etpenses incuned in connzction �eith the District. The cotmty may require payment of ttlose expenses by Febniary 1� of the pear following the year the expenses �ti ere incurred. XIV. Necess�n� Imnrovements in the District No taY increment shall be paid to the City afrer three yeazs from the date of certification of the ori�inai net ta� capacity by the Cotmn� Auditor unless ��'itlun the tluee-y�ear period: (1) bonds hace been issued in aid of the Project pursuant to Section 469.178 of the TIF Act or any other la�a, except revemie bonds issued pursuant to Minnesota Statutes, Section 4691�9 to 469.16�; K �SI4d2GD,G EU2S'.bt39arenatif �� pd I � �-�3r (2) the City� or HRA has acquired prapem' �� itl�in the District; or (3) the City or HRA has constructed or caused to be constructed public improvements «ithin tlie Distnct. The bonds must be issued, or the Cin' or HRA must acquire propertv or constnict or cause public in�pro�ements to be constructed by approsin�atel;r September 1, 20�Q. Pursuant to Minnesotl Stahrtes, Section 469.176. Subd. 6, if, after four years fi�orn the date of certificatiors of dae original tat cnyacity of t{ae tar incr�en7entfinancing dish•ict pznserant to Nlrnnesota Stntertes. Section -F69.177, no dernolition, rehnbilit�uioji or renoration of property or otlzer site prep�aration, inck�ding qu�rlified inzprorement ofa street adjacent to a pm�cel but not instcdlation of T�tilary seivice incle{clirig seuer or �vater systen:s, has l�een eo»rn�enced on a�arcel locateti x'ithni a taz inerernent fanancing clistrict b} the aarthoriry or� by the otirr7er� of the prn in accorrlance irith the tax iner•ement fin�rncing plan, no aclditto3ial tcn i�scre�rient rncry� he takerz from thnt purcel and the original t�cr capaciry of that perr•cel shall be excluded fr�om the original t�c� cn�acity of the tar increr�rent fintrncing clistrict If the aidhoriry o�• tlae owner of the 1�arcel si�bsec�a�entl}� commences demolltion, rehabilitation or renovution or• other site j�repartrtio�� o�r thnt j�arcel incltrcli��g intp�ronement of a street adjacent to that pm•cel, iiz crccordaszce uitFz 1Fie !cu iricrenzent financfng plan, the nuthoy�ir�� shall certifi ro tl2e co<<nty nuditor in the nnnual disclosirre report thnt the actn-iry has conmaencecl. The cozrnty nuclitor shall cet�t� the tca capaciry thereof as nzost recently cert�ed by the commissioner of revenarc and add it to the original t�n capaciry of the tctx increment � financing district The county� auditor• ntust enforce the pYOVisions of this subdivision.. For pmposes of this subdirision, c�zral�ed inzprovements are lirnited to (1) construction or- opening of a neu street, (2) r-eloccrtion of a street, ancl (3) s��bstantial r•ecorrsh�r�ctiott or r•eba�ilc�ing ofan existing str�eet. The City or HRA or a property owner must be�in m�il:in� improvements to pazcels within the District by approximately September. 2001. Pursuant to Minnesota Statutes, Section 469.1763. Subd. 3, re�enues dem�ed from ta� increments are considered to liave been spent on an activity within the District only if one of the follo�vin� occurs: Befof�e or' tirithin fire years crfter cert�ccrtion of the Distr•ict, the r�eventtes are cictt�ally Paid to a thir�d par�ry irith respect to the actiti�iry; Bonds, the pr�oceeds of tia hich mirst be irsed to fznance the activi/}�, are issued and sold to a third pnf�ry befor•e or• iridii�z fii•e }'��rrs crfter certifzcation of the District, the revenz�es aee spent to repc�y the Bonds, t�t�d the proceeds of the Bonc�s either �rre, on the clnte of issuance, reasona6ly expected to be spent before the enc� of the latter of (i) the fzve yecrr periocl, or (ii) a reasonab7e temporary period u ithiri the meaning of the I: ASHARED'.GHURS`6139urenavf «pd �' q4-I�Y use of that tef•nt undee Section 1-G8(c)(I) of tl�e L�tenaal Re�•enue Code, or deposited in a rerrsonably t•equirecl rese�l'e or f'eplacentent firtzd; 3. Binding conlracts with a third pnt are e;7terecl into for• perfor•nxa�ce of the actiriry before or irithi�z five yern�s after cer�tification of the Distr�ict crnct the rei•enues are spet7t zrnder the contr•achral obligation; or -1. Costs isith res�ect �o the actiriry �rre pnid before or uithin fire yems after certifrcation of the Dislricl m7d the revenues trre syent to reirnburse cr party for pcp�rnent of tlze eosts, incluclir2g interest on unrein:bztrsecl ec�sts Therefore, one of the above four events nnut occur b} approximatelti September, 2002. �V. Use of Tni Increment All reveuuzs derived from tas increment shatl be used in accordance �� ith this ta� increment financin� plan, and pursuant to Minnesota Stahrtzs, Section 469176, Subdivisions 4 and 4j. XVI. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes, Section 469.177, Subd. 4, the City has reviewed the area to be i�iduded iu the Distriet and has uot found properties for �cl�ich builciing pemiits have been issued durin� the 18 months inunediately precedin� appro` al of tlle Plan by the City. XVIL Escess Ta� Increments Pursuant to Minnesota Statutes, Section 469.176, Subd. 2, in any year in which the tax increment esceeds the amount necessary to pay� the costs authorized by the tas increment plan, includin� the amoLmt necessary� to cancel any tax levy as provided in Minnesota Stahrtes, Section 475.61, Subd. 3, the City shail use the excess anioLmt to do any of the follo�� in�: 1. prepay the outstanding bonds; 3. discharge the pledge of tax increment therefor; 3. pa� into an escro�� account dedicated to the payment of such bonds; or 4. retum the escess to the County Auditor for redistribution to the respective taxing jurisdicCions in proportion of their taY capacity rate. XVIII. Local Contribution Requirement For tax increment financing disTricts which request certification after June 30, 1944, Minnesota Statutes, Section 2731399, Subd. 6(d) provides that the City mac be exempT from local �overrunent aid or homestead and aaricultural credit aid penalry if the HRA and/or the City makes a local contcibution to the Project equal to fice percent of the ta,e increment. The HI2A and the City elect to make the local contributions in lieu of the state aid penalty�. Five percent of the firture ��a1ue of the tat increments espected fo be coiVected from the District, is approximately [$845,000}. The HRA and the City will K \SHAR�D`.GEURS\6139arennh f t� pd � � 9�i-13Y make an up-front local contribution (rather than a yearly contribution) in excess of that amoimt. The loca] contribution is expected to be paid prior to August l, 2000. Pursuant to Section 2T.1399, 5ubd. 6(d)(2), if the HRA or City fails to make the required contribution for an}� year, tlie state aid reduction �ti'ill appl}� for that }ear. The state aid reduction ��ill be equal to the greater of (A) the required local contribution (�% of tax increments collected that } ear) or (B) the amount of the aid reduction that applies tmder Subdivision 3 of Section 273.li99. XI1. Fiscal Dis�rities The Cit} and the City� have elecfed to compute Fiscal Disparities contcibution for the District in accordance w'ith Section 469.177, subdivision 3. paragraph a. 3i�. Requirements for Aareements �FiEh De� eloner. Pursuant to Minnesota Statutes, �469.176, subd. �, no more than 2�%, bp acreage, of the propert}' to be acquired in the District as set forth in the Taz Increment Financino Plan shall at any time be owned by the HRA oe the City as a result of acquisition with the proceeds of boncis issued pursuant to Section 469.178, without the HRA or City having, prior to acquisition in excess of 2�% of the acrea`e, concluded an agreement for the development or redevelopment of the property acquired and ��hich provides recourse for the HRA or City shotild tlze cieveloputeut not be completed. XXI. Assessment Aareement. Pursuant to Minnesota Statutes, §469.177, subd. 8, the HRA or City may enter into an a,reement in recordable form with the Developer of propem' �cithin tlie District ��hich establishes a minimtmi market value of the land and compieted impro��ements for the duration of the District. The assessment agreement shall be presented to the assessor �vho sh111 re� ie�r� the plans and specifications for the improvements constnicted, revie��' the market � alue pre� iousfy assigned to the land upon �vhich the impro��ements are to be constructed and. so long as the minimum market value contained in the assessment agreement appears. in thejudgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market calue a2reemeut. kXII. De� elopment and Job Creation. To the estent applicable, the HRA ar City agrees to compl}' «ith Minnesota Statutes, § 1163.991, �vhich states that a business recei� ing state or local govecnment assistance for economic development or job groti`1h purposes, includina tas increment financino, must create a net increase in jobs and meet waQe level goals in Minnesota ��ithin two years of receivina assistance. 1: �\SHARCD\G CURS`613 )arenat� ( �� pd 1 � aq -i�� APPE\iDIX A [list of parcels in neti� tas increment district, map of district and map of project areaJ f:�\$HARED��.GEURS\6139arenanf ��pd 16 a9-��' � � � � � 3 � � � � � � vo� �4% � � � � e� � a� � � �. v .� �. � � � � � � i. U � X C3 � c � � � O � a � � w � � c � � s, eYa � � � � U � � Ci C � � a u c Y. CC �°' c aa � p � � -z� � � �- U Q � �C � (6 � C � Q � U � O Q_ � C (�J � C1. O W � N � � � � U � � � .�-. � � > Q3 (� U � [� � Qi Qi � U C Y. f6 � � Q) � � O C> � � � @� � QJ U � � L a- C � > aJ (r � 1 � �! q,9 • 13 Y lnterdepartmental Memorandum CITY OF SAIVT PAUI. DATE: January 27, 1999 TO: Shari Moore, Depury City Clerk Nancy Anderson, Cotmcil Research F120M: Bob Geurs, PED � I RE: Public Hearing Shari, attached is a public hearing notice and map that needs to be published for amending a taY increment financing plan for Block 39/Arena Tax Increment District �vhich is part of the legal requirements for the issuance of City financing for the RiverCentre Arena �vhich will be considered on February 10, 1999. Also attached is a copy of the amended TIF Plan for the City Clerk's office. When published, please fonuard a copy to mz of the notice as it appears in the legal ledger and ne�vspaper. Nancy, the Office of Financial Services will route two City Council Resolutions authorizing the Bonds and related documents for the RiverCentre Arena financin�. There also �vill be t�vo HRA resolutions for Februar}• 10 approvin� TIF Plan and HRA entering into a Pizdge Aereement for the Arena financing. Thanks for your help. RBG/lle attachments cc: Joe Reid Shirley Davis \�Ped.SYS3SHARED',GEURS`mooreandeaonmemo.apd a9-i��' NOTICE OF PUBLIC HEARiNG ON AMENDMENTS TO THE TAX INCREMENT FINAiv`CING PLAI�T FOR THE BLOCK 39/ARENA REDEVELOPMEI`'T TAX NCREMENT FINA?��CING DISTRICT NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Paul, Minnesota (the "City") ��ill meet in the City Council Chambers, City Hall, IS West Kellogg Boulevard, Saint Paul, Minnesota, on February ]0, ]999, at 5:30 p.m., or as soon thereafrer as the matter may be heard, for the purpose of conducting a public hearing on the proposal of the Housinj and Redevelopment Authority of the City of Saini Paul (the "Authority") to amend the Tas Increment Financina Plan for the Block 39/Arena Redevelopment Tas Increment Financing District located �cithin the Seventh Place Redevelopment Project Area (the "Redevelopment Projeet Area"). A draft copy of the proposed amendments to the Tax Increment Financing Plan, alon� with a11 attaclunents and exhibits thereto, �vil1 bz acailable for public inspection at the office of the City Clerk, Room 170, City Hall, and with the Authority, at the offices of the Department of Planning and Economic Development, City Halt Annex, 13` Floor, 25 �Vest Fourth Street, Saint Paul, Minnesota, durin, regular business hours. A map indicating the boundaries of the Tax Increment Financing District and the Redzvelopment Project Area is set forth belocv. A11 persons interested may appear and be heard at the time and place set forth above. CITY OF SAINT PAUL (s/ Fred Owusu Citti Clerk \Ncd`sysZ�SENRED'�,GEURSVblock39publichrgnotice apd °lg-��P' � � � ✓ � � � � � � � .� r6 L � � .� � � �.tl.� � L� U .� � N Q � C � � � U C Y. � F- .r � W � � � Q) l c� � w CY c3 C � Q � m U O CD U .� u� � C G: � m L �i � L tU f � a� E o_ 0 U � 4� N C U O � i;��( v G (6 'C1 � � O (X'i U a 'o � � � m � a 0 m � N 'r W CC a� U � � � C N a W C� U .` N Q C G � G? Y U � � � c m E a 0 c� C7 � C� G' e� U r C L <- C � � U� � � �. I � q� � �� NOTICE OP PUBLIC HEARING ON AMENDMENTS TO THE TAX INCREMENT FINANCING PLAN FOR THE BLOCK 39/ARENA REDEVELOPMENT TAX INCREMENT FINAI3CING DISTRICT NOTiCE IS HEREBY GIVEN that the City Council of the City of Sanat Paul, Mianesota (the "City") will meet in the City Council Chambers, City Hall, 15 West Kellogg Boulevard, Saint Paul, Minnesota, on February 10, 1999, at 530 pm., or as soon thereafter as the matter may be heazd, for the purpose of conducting a pubiic hearing on the proposal of the Housing and Redevelopment Authority of the City of Saint Paul (the "Authority") to amend the Tax Increment Financing Plan for the Block 39/Arena Redevelopment Tax Increment Financing District located within the Seventh Place Redevelopment Pro}ect �rea (the "Redevelopment Project Area"). A draft copy of the proposed amendments to the Tax Increment Financing Plan, along with all attachments and exhibits thereto, will be available for public inspection at the office of the City Clerk, Room 170, City Hall, and with the Authority, at the offices of the Department of Planning and Economic Development, City Hali Annex, 13`" Floor, 25 West Fourth Street, Saint Paul, Minnesota, during regular business hours. A map indicating the boundaries of the Tas Increment Financing District and the Redevelopment Project Area is set forth below. Al1 persons interested may appeaz and be heard at the time and place set forth above. Dated 7anuary 28, 1999 Shari Moore Deputy City Clerk (7anuary 30, 1999) �, � �� u � � < m � r. 7 � A1 Q � � rD � ro � m 0 � � m � .... � v x � � m � m � � � � � � � i�Qj � 0 � � s� � m � < m 0 '� � ro � � � X 3 � � ro � m � C � n ci qq _13�' � ro c � � 3 � � Q � '.YI m n. ro < m 0 v � m � � � 0 ai n m 0 � � � � � � 0 n w � D m � � ,�.7 ro S� ca t ro 0 � 3 � � .� � v x � � m � :� � .,. � � � C)� --1 - '� � �.. � � �� a-r � � 3v � �. 'O � � � 0 G � � � � � ORIGiNAL Council File # l� " � JO Green Sheet # �O J L-�..� RESOLUTION CfTY OF SAINT PAUL, MINNESOTA Presented By Referred To 33 Committee: Date RESOLUTION APPROVING THE AMENDED AND RESTATED TAX INCREMENT FINANCl23G PLAN FOR THE BLOCK 39/ARENA REDEVEL,OPMENT TAX INCREMENT FINANCING DISTRICT 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul (the "AUthority"1 has heretofore adopted a resolution establishing the Block 39/Arena Redevelopment Tax Increment Financing District (the "Tax Increment District") and approving a tax increment financing plan therefor (the "Tax Increment Financing Plan"). WHEREAS, the Authority has hereto determined that it is necessary and desirable to amend the Tax Increment Financing Plan in certain respects and has theretofore had prepared an Amended and Restated Tax Increment Financing Plan. WHEREAS, the Authority has performed all actions required by law to be performed prior to the adoption of the Amended and Restated Tax Increment Financing Plan, including, but not limited to, notification of Ramsey County, Independent School District Number 625 and the County Commissioner having jurisdiction over the property included in the Tax Increment District, and requesting the City Council to approve the Amended and Restated Tax Increment Financing Plan following the holding of a public hearing thereon. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the '�Council��), as follows: Section 1. Findinc�s by the City for the Approval of the Amended and Restated Tax Increment Financing Plan for the Block 39/Arena Tax Increment Financing District. 1018759.1 99 -13g 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 �i 72 73 74 75 76 77 78 79 80 ai 82 1.01. The ratifies its findin public interest and Minnesota Statutes, Council has heretofore found and hereby g that the Tax Increment District is in the is a"redevelopment district" pursuant to Section 469.174, Subd. 10. 1.02. The Council has heretofore found and hereby ratifies its finding that the Tax Increment District, and the approval of the Amended and Restated Tax Increment Financing Plan relating thereto, are intended and, in the judgment of this Council, the effect of such actions will be to provide an impetus for redevelopment and to further the public purposes and accomplish certain objectives as specified in the Amended and Restated Tax Increment Financing Plan which is hereby incorporated herein. 1.03. The Council has heretofore found and hereby ratifies its findings that the proposed development or redevelopment in the Tax Increment District, in the opinion of the City, would not occur solely through private invesCment within the reasonably foreseeable future and that the increased market value of the taxable property within the District that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Amended and Restated Tax Increment Financing Plan and, therefore, the use of tax increment financinq is deemed necessary; that the Amended and Restated Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Tax Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. Section 2. Approval of the Amended and Restated Tax Increment Financing Plan and Further pocumentation. 2.01. The Amended and Restated Tax Increment Financing Plan, as presented to the City Council on this date, is hereby approved, and shall be placed on file in the office of the City C1erk. 2.02. The sta£f of the City, the City's advisors and legal counsel are authorized and directed to cooperate as necessary with the Authority in the implementation of the Plans 1018759.1 4�-13�' � and for this this Council resolutions, necessary fo purpose to negotiate, draft, prepare and present to for its consideration all further plans, documents and contracts which may be deemed r this purpose. Requested by Department of: f"/NF�NCI64t- J��//LES g ��e-�-. � � Adopted by Council: Date ��_ ( �� Adoption Certified by Council Secretary By: a - � Approved by Mayor: a e g 3y: � �+ Form Approved by City Attomey By: �� . :PARTMENilOFFICE/COUN( fice of Fnancial Services �q_��Y oevnnn�xr omccroa No 63227 amcouca AGENDA BY (DATE] ASSIGM ♦ \ � amARORMEY ❑ aI't<LERR NUMBERf-0R RWiiNG ORDFR � F�+n11C1atsFRV�CE40IR. ❑ NUrICI�LaErtY�ACGf6 � WYOR�ORA541STANf� � ❑ TOTAL # OF SIGNATURE PAGES 1_ (CUP ALL LOCA710NS FOR SIGNATURE) attached r�oluHo� approves the Amended and Resfated Taz Increment Financin9 P�� fw the Block 39/Arena RedevelopmeM Tax Inerement F(rnruing Didrict. PLANNING CAMMISSION CIB CAMMfTfEE CIVIL SERVICE COMMISSION Has th�s persorvTirtn ever vroAretl u�Mer a cont2cl kr this departmenC7 YES NQ Has this persoNfirtn ever been a ciry employee? YES NO Does this persoMmm possess a skifl �wt iwrmally posseased by any curteM city em�oyee? YES NO Is this perso�rm 8[argeted vendo(t YES NO resolution 1s necessary for Ne pledge ot taz incmments from the $33,500,000 short tertn Commercial Paper wing to the long tertn debt financing for the Arena, not to exceed $75,000,000. term varia�le ra[e Qna�cing will 6e replacetl by long tertn fited iMeres[ tate tlebt. ihe City will not be able to take atlraMage of the historical low interest rates arailable in todays markets. fOTAL AMOUNT OF TRANSqCTION S 'UNDING SOURCE ,�9 I GREEN SHEET ACTNI7Y NUMBER ,� <_ . S:;'- �"- i.. `� _=j �y =,.�'�r �i.��w i t=._ V (CIRCLE ON� YES NO INANqpy �NFORNAiION (EXPWI� q9-138' HOUSING AND REDEVELOPMEtiT AUTHORITY OF THE CTTX OF SAINT PAI3L A�iENDED AND RESTATED TAX INCREN1ElVT FINANCING PLAN FOR BLOCK 39/ARENA REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT I. Introduction A. Background The Housin� and Redeaelopment Authority of the City of Saint Paul (the "HRA ") proposes a plan for the redevelopment of property in the City consistin� of acquisition of land, demolition of structures, and the construction of (i) a 1,07�- stall parkin� ramp and retail space (ii) an approximately 382,000 square foot office tower, and (iii) an approximately 20,000 seat,arena for professional hockey games and other large entertainment events, as a replacement of the existing RiverCentre arena, a11 on an approximateiy 12S acre site located in the central business district of downtown Saint Paul (collectively, the Project"). On November 30, 1978, the HRA approved the Seventh Place Redevelopment Plan and the Project Financing Plan therefor by Resolution No. 7 8-1 113 0-1. Subsequently the City Council of the City of Saint Paul (the "Council") gave its approval by Resolution C.F. No. 2721 �5 adopted on December 5, 1978. By Resolution No. 81-11/�-8 adopted November 6, 1981 and Resohition No. 83- 5f25-3 adopted May 2�, 1983, the HRA adopted modifications to such plans which did not require approval of the Council, and by Resotution No. 82-1J28-11 adopted amendments to the Redevelopment Plan and Project Financing Plan, which amendments �vere approved by the Council by Resolutions C.F. No. 278173 and 278670 adopted February 4, 1982 and May 1 I, 1982. The plans were again amended by Resolution C.F. No. 89-20?8 adopted by the Councit on November 9, 1939 and the HRA on November 9, 1939 by Resolution No. 89- 11/9-1. The plans were most recently amended by Resolution C.F. No. 97-668 adopted by the Council on May 28, 1997 and by Resolution 97-5/28-9 adopted b} the HRA on May 28, 1997. B. Creation of Block 39/Arena Redevelopment Tax Increment District This tax increment plan relates to the creation, under Minnesota Statutes Section 469.174, Subd. 10 of the Block 39 /Arena Redevelopment Tax Tncrement District (the "District"). C. Need and Public Purpose It is necessazy that the HRA exercise its powers under state la�v to develop, implement, and finance a program designed to encouraoe, ensure and facilitate the development of the propert�. This development will further accomplish the public purposes specified in this paragraph. K'\S HAREDIG E URS`,6139 arenan F wpd 99-138` On June 2, 1997, the city finalized a proposal to demolish the existin� Cicic Center arena and construct a new RiverCentre arena to be the home venue for a Iv'ational Hockey Lea�ue franchise, and the City Councit has determined that those improvements �vill be required to obtain for the City the benefits of a major league sports franchise playing its home �ames in that location. As a result of the Downtocrn Saint Paul Parking Study (the "Parkin� Study") conducted by SRF Consultin� Group Inc., a deficit of appro�imately 1,300 parking spaces �c•as identified. The parkina ramp project proposed for Block 39 ��ill add 1,07� parking spaces to the do�cnto�cn core. The March, 1997 draft plan for the Saint Paul Development Frame�vork identifies the Applebaum's block (which is Block 39) as a key redeve(opment opportunity. II. Obiecti��es of the HRA for the improvements in the Block 39/Arenn District area. A. Provide job opportunities for Snint Paul residents. The employment base of the City will immediately expand by more than 800 with the completion of the office building on Block 39, and the proposed tenant for the office tower is expected to continue to grow, adding ne�v jobs to the City�. Construction of the new RiverCentre arena �vill pro��ide newjobs for maintenance and operation of that facility, as �vell as additional jobs arisin� from concessions retail sales and other activities relating to events held in the arena. B. To redevelop underused property. Block 39 is a site that has been underutilized for many years. The majority of the area comprising the site has been used for small businesses. Ne�v commercial, cultural and recreational investments are jeopardized by declinin� employment opportunities from a variety of new causes, increased competition from the suburbs and downtown parkin� problems. The existing Civic Center arena is both structurally deficient and functionally obsolete. It cannot practically be used as a home venue for the professional hockey franchise awarded to the Saint Paul metropolitan area. In order to take advantage of the economic and development opportunities offered by the addition of the hockey team to the activities available in dow�nto��n St. Paul, the existing arena must be replaced. The new arena must be provided largely throu�h public initiative and investment. In order to protect past investments and remain competitive, the Block 39IArena Redevelopment Tax Increment Financing District needs to be created, to provide additional public investment to bolster employment opportunities, to solidiry downto�vn as a cohesive office retail center, to provide a home venue for the professional hockey team, to improve pedestrian circulation and to develop accessible parking. IC:\SH.4RED\GEURS`�bG9arenanf �cpd qq-��F� C. Provide Public Parking The parking garage to be constructed on Block 39 �cill include approximately 1,07� underground and aboce ground parkin� spaces, approximately [57�] of �vhich will be available for the general public, and help alleviate the doccntoti�n parkin� problems which ha�e heen identified by the Parking 5[udy. D. Ecpand the tax base of the City of Saint Paul. It is expected that the tasable mazket value of parcels an Block 39 will inerease b5 approximately $31,37�,QQ0 once the neGi office buildin� and parking ramp (includin� 20,000 square feet of retail space} is placed in service. This value consists of $3>,000,000 for 382,000 square feet of office space and retail in the office building, plus $57�,000 for 12,�00 square feet of retail in the parking ramp. The existing market value of Block 39 is $4,511,10Q The 1,07� space parl:ing ramp to be built on the block tivill cost approsimatelg $16,560,000, but �vi11 be ta�-exempt since it will be owned by the City. Construction of the new Ri� erCentre arena will not, by itself, increase the tax base of the City because that property is and cvill remain exempt from real property taxes. The economic acti��ity generated by the new arena is expected, however, to increase the taYable value of other prop2rry in its near vicinity, both within the District and surrounding it. E. Remove blight within doticntown Saint Paul. The Block 39 site and other properiy included in the District is located in downtown Saint Paul. Block 39 lies between Wabasha, St. PeYer, Fifth Street and Sixth Streets. The other property extends to and surrounds the site for the new RiverCentre arena plus thz Cle��eland Circle property. The existina buildings will be removed in the renovation process, and replaced with a new publicly-owned parking faciliry, a privately constructed office-building, and a neGV RiverCentre arena, substantially improving downtown St. Paul. III. Classification of the District. The HRA and the City, in determining the need to create a tax increment financin6 district in accordance �vith Section 469.174, fmd that the District is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subd. 10 because (1) parcels consisting of 70% of the area of the District aze occupied b} buildings, streets, utilities or other improvements and (2) more than 50% of the buildin�s are structurally substandard; and these conditions are reasonably distributed throu�hout the geo�raphic area of the District. The District contains 21 parcels of land totaling b34,394 square feet of which 100% is occupied b}� either buildin�s, streeU. utilities or other improvements. A total of 14 buildings are located �vithin the Disttict. Ea�tzmai real estate appraisals (which are on file in the offices I:��S H:1RED\GBURS\bLi9arenanf �vpd q9-I�' of the HRA) of ten buildings located on Block 39 support the conclusion that alt ten of them are structurally substandard. In addition, the District meets the requirements of a redevelopment district pursuant to Minnesota Statutes, Section 469.176, Subd. 4; because at least 90% of the revenues dericed from ta� increments from the District will be used to finance the cost of conectin� conditions that allow�ed desi�nation of the District as a redevelopment district under Section 469.174, Subd. 10 described above. These costs include acquirino properties and adjacent parcels demolition of structures, clearin� of land, and installation of utilities, roads, sidz�calks and parkine facilities for the District. The allocated administrative costs may also be included in the qualifyin� costs. IV. Description of the develonment nroaram for the Block 39/Arenn District. The development program consists of the development of the site to provide a buildable site for the RiverCentre arena and for a parking garage, retail space and an office to�ver on Block 39 in flie District. This will require acquiring land, relocation of certain existing operations, demolition of existing struchires, installation of infrastnicture, constn�ction of the new arena, possible skytivay connections, contracting for professional services essential to redevelopment activities, incurring financing related expenses and fimdin� administrative functions, all as described in more detail below: IC1SH.ARED.GEURS`�bli9arenauf wpd �t -I�' A. Estimated cost of redevelopment project. The estimated total cost of the ne�v activities to be undertaken in the District is $225,000,000, broken do«n as follows: (i) (ii) Block 39 Development Pazkin� Ramp and Retail O�ce Tou $ 40,000,000 55,000,000 RiverCentre Arena' TOTAL : An estimate of the public costs are as follows: Public Costs described in Section IV: �130,000,000 $22�.000.000 giock 39 $4Q000,000 City obligations for Arena 65,000,000 State obligations for Arena $65.000.000 Issuance Expenses and Resources (including Bond Issuance Premium, Underi��riter's Discount, Reserves and related financing costs) TOTAL $170,000,000 10,000,004 $180.000.000 The costs set forth above aze estimates and the amounts allocated to any item may be reallocated amono any of the other items set forth above, provided that the totai principal aznount of the costs for the items specified will not exceed $225,000,000. Incnr costs and expenses connected with financing activities. The City or its HRA shall issue a combination of tax e:cempt and taYable revenue oz general obligation tax increment bonds and revemie or general obli�ation parking bonds to fanance approYimately $120,000,000 of total pro}ect costs.� Bond issuance costs plus other financin� related costs. including reserves, capitalized interest, leQal eYpenses, printin� and undenvriter's discount, aze anticipated to totai approximately' $10,000,000. 1 MN Wild is responsible for cost overnms in excess of $ li0,000,000 �vhich is bein� provided by City and State for new Arena. K:\SH.ARED\GEURS\b139acenanf �vpd aq -�3�' C. Cit} and HRA Annual Budget. At the time of final approval of the issuance of debt, the HRA �ti�ll adopt a more detailed bud�et including a fmancing and spendinQ plan that �� i11 further detail the costs and financin� actiz�ities of A and B above. Additionally', each year as part of the Cit}' and HRA annual budaet process, the detailed budaet may be amended. As part of the annual budget process, the School Boazd and Counry will be contacted to gi�e any comments on the Tae Increment Financing Plan «bich ��ould include oriQinal plans and any annual bud�et amendments. V. Description of contracts entered into at the time of preparation of the Plan Section 46917�, Subd. 1(3) requires this ptan to contain a list of any development activities proposecl to take piace within the project, for which contracts have been entered into at the time of the prepacation of this plan. At the time of the prepazation of this plan, the HRA or the City has entered into the folio�ving contracts: (i) Activity: Construction of Office Tower Developer: Rice Park Associates Cost: $53,535,000 Completion: Au�ust 1, 2000 (i) Activity: Construction of parking r<�unp and retail space on Block 39 Contractor: to be bid Cost: $19,485,650 Completion: June, 2000 (iii) Activity: Preparation o£ Phase I Environmental Report Peer Environmental Cost: $14,62� Completed (iv) Activity: Soil Borin� American Engineerin� and Testing Cost: $10,000 Completed (v) Actavity: Survey Stmde Surveyin� Cost: $10,000 Completed (vi) Activity: Appraisals of existing buildings Dwight Dahlen a�id Blake Davis Cost: $12,500 and �16,000, respectively Completed K'\SHARED\GEURS6139arenanf «'pd � -►�Y (vii) Acti��iry: Appraisal of proposed office tow;er as built Towle Companies Cost: � 14,000 Completed (viii) Actir ity: Arena Lease and amendments originally dated JanuaR� 1�, 1998 and related documents Minnesota Hockey Ventures Group LP Activity: Construction of Arena Cost: Approximately S130,000,000 Estimated Completion Date: September l, 2000 VL Descrigtion of other ty�es of deuetopment activities �vhich can reasonablv be esnected to take nlnce within the Block 39 Arena District Proicct De� elopment activities in the District, which may require the expenditure of tas increments, ��ill consist of activities necessary and ancill�u to promotina and masimizine the above goals and focus. Constniction of new buildin�s on Block 39 is expected to conunence during the second quarter of calendar yeaz 1448 and �vill be occupied in the year 2000. The construction of the nz��' arena is expected to commence in 1948 and be completed in the year 2QOQ. VIL Cost of the Project �nd description of the Block 39lArena Redevelonment Ta� Increment District. �Ihe following, as required by Section 469.17�, Subd. 1(�), are estimates of the (i) cost ofthe Project, including administration expenses; (ii) amount of bonded indebtedness to be incurred; (iii) sources of revenue to finance or otherwise pay public costs; (iv) the most recent net taY capacity of tarable real property within the tax increment financin� district; (v) the estimated caphired net tax capaciry of the tas increment financing district at completion; and (vi) the duration of the taY increment financin� districPs existence. A. Cost of the Project, including administrative expenses. The total cost of the Project is estimated at $225,000,000 plus administrative charges in an amount up to 10% of the tax increment expenditures. B. Amount of bonded indebtedness to be incurred. The Cit�� shall be the issuer of one or more series of tax exempt and/or talable general obligation taY increment bonds in 1997 or 1998 in the aggregate approximate amount of $40,000,000 for Block 39. In January of 1998, the City issued its General Obliaation Commercial Paper Notes (the "Commercial Paper Notes") in the principal amoLmt of $33,500,000 to finance a portion of the costs of the Arena. The Cit;' anticipates Issuing approximately $7�,000,000 of Taxable Sales Tax Revenue Bonds, to which taY increments will be pledaed as credit enhancement, to finance a portion of I:�\SHARED�.GEURS1bi39arenauf wpd aa_��Y the costs of the Arena and to refund a portion of the Commercial Paper Notes. The Cit; ma��, afrer the initial isuance of bonds, issue cefundin� bonds for purposes of refinancin� such bonded indebtedness. C. Sources of reti enue to finance or othencise pa}' project costs. The follo��in� are the likely sources for fundina the total Project, including the tat increments ��ltich �rill be pledged to the bonded indebiedness: Tas Increments Tar increments ace anticipated to equal $1,605,680 annually. All tax / increments witl be first pledged to the pa} ment of debt service on the bonds described in B above. ii. Ciri� of Saint Paul Tlie City of Saint Paul is expected to pro��ide other fimds in the approximate amount of $1,4>0,000 of ramp revenue plus an approximately $5,000,000 supplemental xeserve from (x) the World Trade Centex Ramp; (y) Dishict EnergS, and (z) proceeds from the restnich�rine of the Do«ntown Tax Increment Debt, or other available HRA resources. The City will also use revemies from the local sales tax to pay debt serc°ice on the approximately $7�,000,000 of Sales TaY Revenue Sonds issued to finance the Arena. iii. State of Minnesota The 1993 Legislature approved a state loan of �65,000,000 to finance a portion of the Arena. i� . Investment income Certain interest eamin�s from the taY increments and other City funds wiil be a source of revenue to pay project costs. A current estimate of such eamings is not available. c. Develo�er Financine a. Block 39. The developer of the office to�cer will contribute 10°to of the total development cost of the office tQweL. and wilt obtain financing for the remainder of the cost of construction of that building above $�3,200,000, b. Ar�ena. Minnesota ��'ild, the operator of the nen� Ri� erCentre azena, wiil contribute annually $6,000,000-�9,641,663 dollars to retire the state loan (described under iii, above) and City revemie debt for the first 2� yeazs of the azena lease. The Minnesota Wild will provide f�iSHARED\GEURS\bLi9arenavf opd aa-��Y under an amended lease annua] Letter of Credit of �6,000,000 to $8,000,000 dollars to secure the City's reaenue debt for the new azena and State loan. A. The most recent net tas capacih� of tazable real propert}' ��ithin the tax increment financing district. At January� 2, 1997 the total taY capaciry of propzrty parcels to be included in the Distrlct was $196,391. The arena site and Clel eland Circle property is tax-exempt. Of the $�,511,100 total base market value, $2,2�6,400, or 50% of the total, is �ttributable to buildin�s on Block 39, all of �vhich «ill be removed in connection with the development pursuant to this Plan. The �2,2�4,700 of market ��alue attributable to the land is assumed to remain constant. The original ta� capacin' and Tax Rate are calculated in accordanee �4ith Minnesota Stahires. Sectinc1469.i74, SubcL 7 atzd Section 469177, Subd. 1. E. The estimnted captured net taz caplcity� of the tas increment financing district at completion. The construction of the office tower is expected to result in 382,000 squaze feet of new construction with an aegregate assessed ��ahie of S35,OQQ000. The parking ramp �vili have a mazket value of approximately $16 million but wili be e�empt from tax since it wi11 be owned by the City. The RiverCentre arena �vill cost approximately �150 million but will be exempt from property taY since it �vill be owned by the HRA or the City. Assuming land values remain constant, the increase in mazket value is estimated at $31,37�,00�. Applying a 3.4% tax capacity rate results in estimated caphired tax capacity of approximately $1,066,7�0 in the year 3001, the year followina expected completion of construction of buildin�s. This captured ta�Y capacity is calcuiated in accordance �vith Minnesota Stahrtes, Section 469.174, Subd. 4 and 469.177, Subd. 2. F. The duration of the tns increment fan�ncina districYs existence. Request for certification of the District �vas made in 1997. The first ta� increments are anticipated to be generated for taYes payable in the year 2000. The duration of the District wiil nm 25 yeaLS from the first receipt b} the City of tax inerements, which ��Zll be through calendar year 202�. The HI2A does, however, reserve the right to decertify the District prior to the le�ally required date. VIII. Alternate esfimates of the impact of the tax increment financina on the net tat capacities of all taxing iurisdictions. The tatiing jLU in which the District is located in �vhole or in part aze as follows: a. Independent School District �62�, whose boundaries aze coterminous «ith those of the City of Saint Paul. f: \SH9RED�GEURS' «pd aq -13Y b. The County of Ramsey, the total mazket �alue of «t�icli the Cin' of Saint Paul contributes approximatel}� 4�%. c. The Housin, and Redevelopment Authority of the Citc of Saint Pau1, ��hose boundaries are coterminous �cith those of the City of Saint Paui. d. The Port Authorit}� of the Cih of Saint Paul, ��hose boundaries are coterniinous ��ith those of the City' of Saint Paul and ��liose po�cers to le�} and use propert} tases are limited. e. \4etropolitan authorities, such as the Metropolitan Council, Metropolitan Airports Conmlission, Metropolitan Waste Control Conmlission, and the Metropolitan hlosquito Controt District. Of these, only the Metropolitan Coimcil and the Ivietropolitan Mosquito Coutrol District currently 1e�ti tases on real estate. The HRA is required by Minnesota Statutes Section 469_17�, Subd. t(a)(6) to make statements relati�e to the alternate estimates of the impact of the tas increment financing ou the net ta� capacities of all taring jurisdictions in �vhich the tar increment financing district is located in whole or in part. Impact on Tasing Jurisdictions Under the assumption that tUe estimated captured ueT tat capacit} ti�'oulcl be avaitable to the tavinQ jurisdictions �vithout creation of the District, creation of the District �cill serve to deny these taxin� jurisdictions the taxes from the captured net tax capacit}• in the amotmt estimated in Tabie 1 below. Note that a�ortion of flie District to be created is currentiv alreadv within an e�istino TIF distriet which expires in 2003 Therefore, the creation of this ne�v District wi11 denv the tarind iurisdictions those taxes onlv from the vears 2009 to 2025. The portion of the Aistrict that is not alread}• within an existing TIF District does not contain any real property which is subject to ad valorem taxes. Table 1 Ta�irts Jurisdic[ion Cin of St Paul Ramse� Count� School Distnct °62� Other Curzent T.C. Rauo Percent 35232 23 4 40 Z00 26.6 69219 4S 9 6.1�1 4.1 li0802 100 Estimated Annual Caoturzd Increment 376.-131 427.909 73833� 65.9�6 1.608.630 Loss to T�.�me Iurisdictions Present-2009 2009302a 0 6.022,896 0 6.8-46.54�F 0 l i 8I4.14J 0 I.OSS:l96 0 �5.733.880 EC \SFL�RED`.GEURS'�bl39arznahf «pd I � q9 -I�Y Ih. Studies and analti'sis used to determine need for tas increment financinQ. The HRA and the Cit} hace determined that the proposed rede�elopment of the Block 39lArena area �could not reasonabl}� be ehpected to occur solel}' throu,h pricate investment �� ithin the reasonably foreseeable future and that the increased market ��alue of the site that could reasonably' be expected to occur ��ithout the use of ta� increment financina �rould be less than the increase in the market �alue estimated to resuit from the proposed development after subtracting the present value of d1e projected ta�: increments for the masimum duration of the district pemiitted b}� the pl'u1. The HRA and the Ciry made this finding in resolutions adopted on September 24, 1997 and September 24, 1997, respectivety based on data collected and presented to the Board by HRA staff. The sTUdies and analyses used to make the detemiination that tlie proposed development in the opinion of the CitS� �vou(d not reasonabi} be e�pected Co occur through pri��ate investment �� ithin the foreseeable fuhire, and therefoee the use of tas increment is deemed necessary, are as follo�vs: The Greater Saint Paul Buildin, O��ners and Mana�ers Associations 1996 Annual Office Marketing Report indicates that the Net Rate foc Class A oftice space ranges from a lo��' of $8.10 to $1450 per square foot. This stud}� demonstrates that in order to provide the developmeiaC of competiti� e Class A office space, there neecls to be public financial participation. The To�cle Report's 1996 Office Market Update also substantiates the market forces drivina the lease rates. The Tas Increment Financins for the office building matces it possible for the City�1HRA to purchase the land in order to satisfy the demand for parking demonstrated by the Parking Shidy. X. Identification of all narcels to be included in the District. Attached hereto in Appendix A is a list of the Property Identification Numbers (oi le�al descriptions) for a11 properties to be included in the District, a map sho�rino the Seventh Place Redevelopment Project area (as most recenth amended), the District a�id the existins properties, and a le�al description identifyins the boundaries of the District y XI. District administration and annual disclosure. Administration of the District wi11 be the responsibility of the Cit�� of Saint Pau1. Tax increments �vill be deposited into interest bearing accounts separate and distinct £rom other funds of the City. Tax inerements n.ill be used only for aetivities described in this tax increment plan. The Cit�� vill report annually to the State Auditor, county boazd, school board and Department of Re��emie reoardina activities in the District as required by Section 469.17�, subdivision 5 and subdivision 6 and will include information �vith regard to the District in the data necessary to comply with subdi� ision 6a. «'ith regard to the local contribution as k:-`SP{:1R[DAGEURS\6139urenanft�pd 1 � �,-i�� discussed in Section XIX, the Cin �rill file necessary reports as required b} the Department of Re� enue. 3tiII. �Iodifications to District In accordance «�ith Minnesota Statutes, Section 469.17�. Subd. 4, any reduction or enlar�ement of the �eoarapluc arza of the Project or ta< increment financin� district; increase in amouut of bonded indebtedness to be incuned, includin� a detennination to capitalize interest on debt if that detecniination ��as not a part of the oriQinal p1an, or to increase or decrzase the amount of interest on the debt to be capitalized; increase in the portion of the captured tas capacity to be retained by� the Cit} ; increase in total estimated ta� increment expendiriires; or designation of additional propem° to be acquired b} Che City shall be appro�'ed upon the notice and afrer the discussion, public hearino �uid findin,s required for approval of the originll plan. The geographic uea of a tas increntent financino district ma}' be reducecl, but shall not be enlarged after five yeus followin� the date of certification of the orijii�al tax capacity by tl�e counn' auditor. XIII. Administrative Espenses In accord<utce �vith Minnesota Stahrtes, Section 469.174, Subd. 14; and Minnesota Stahrtes, Section 469176, Subd. 3 administrative expenses means all expendihues of an authority other thln amounts paid for tlte purchase of land or amoui�ts paid to ca�tractors or others providing ntaterials and services, inchtdin= architectural and en,ineexin6 sen�ices, directly connected ��ith the physical devetopment of the reat property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District or amounts used to pav interest on, fiuid a reserve for, or se11 at a discount bonds issued pursuant to Section 469.178. Administrative eYpenses also include amounts paid for services provided by bond counsel, fiscal consultants, and plannin� or economic development consultants. Administrative expenses of the District will be pald from ta� increments; provided that no ta� inerement shall be used to pay anv administrative expenses for the Project Wrlvch exceed ten percent of the total tax inerement expendit�ires authorized by flze ta� inerement financina plan or the total tas inecement expendittires for the Project, ��hichever is less. Pursuant to Miiu�esota Statutes. Section 469.176, Subd. 4h, tas incrzments may be used to pay for the county's achial administrative etpenses incuned in connzction �eith the District. The cotmty may require payment of ttlose expenses by Febniary 1� of the pear following the year the expenses �ti ere incurred. XIV. Necess�n� Imnrovements in the District No taY increment shall be paid to the City afrer three yeazs from the date of certification of the ori�inai net ta� capacity by the Cotmn� Auditor unless ��'itlun the tluee-y�ear period: (1) bonds hace been issued in aid of the Project pursuant to Section 469.178 of the TIF Act or any other la�a, except revemie bonds issued pursuant to Minnesota Statutes, Section 4691�9 to 469.16�; K �SI4d2GD,G EU2S'.bt39arenatif �� pd I � �-�3r (2) the City� or HRA has acquired prapem' �� itl�in the District; or (3) the City or HRA has constructed or caused to be constructed public improvements «ithin tlie Distnct. The bonds must be issued, or the Cin' or HRA must acquire propertv or constnict or cause public in�pro�ements to be constructed by approsin�atel;r September 1, 20�Q. Pursuant to Minnesotl Stahrtes, Section 469.176. Subd. 6, if, after four years fi�orn the date of certificatiors of dae original tat cnyacity of t{ae tar incr�en7entfinancing dish•ict pznserant to Nlrnnesota Stntertes. Section -F69.177, no dernolition, rehnbilit�uioji or renoration of property or otlzer site prep�aration, inck�ding qu�rlified inzprorement ofa street adjacent to a pm�cel but not instcdlation of T�tilary seivice incle{clirig seuer or �vater systen:s, has l�een eo»rn�enced on a�arcel locateti x'ithni a taz inerernent fanancing clistrict b} the aarthoriry or� by the otirr7er� of the prn in accorrlance irith the tax iner•ement fin�rncing plan, no aclditto3ial tcn i�scre�rient rncry� he takerz from thnt purcel and the original t�cr capaciry of that perr•cel shall be excluded fr�om the original t�c� cn�acity of the tar increr�rent fintrncing clistrict If the aidhoriry o�• tlae owner of the 1�arcel si�bsec�a�entl}� commences demolltion, rehabilitation or renovution or• other site j�repartrtio�� o�r thnt j�arcel incltrcli��g intp�ronement of a street adjacent to that pm•cel, iiz crccordaszce uitFz 1Fie !cu iricrenzent financfng plan, the nuthoy�ir�� shall certifi ro tl2e co<<nty nuditor in the nnnual disclosirre report thnt the actn-iry has conmaencecl. The cozrnty nuclitor shall cet�t� the tca capaciry thereof as nzost recently cert�ed by the commissioner of revenarc and add it to the original t�n capaciry of the tctx increment � financing district The county� auditor• ntust enforce the pYOVisions of this subdivision.. For pmposes of this subdirision, c�zral�ed inzprovements are lirnited to (1) construction or- opening of a neu street, (2) r-eloccrtion of a street, ancl (3) s��bstantial r•ecorrsh�r�ctiott or r•eba�ilc�ing ofan existing str�eet. The City or HRA or a property owner must be�in m�il:in� improvements to pazcels within the District by approximately September. 2001. Pursuant to Minnesota Statutes, Section 469.1763. Subd. 3, re�enues dem�ed from ta� increments are considered to liave been spent on an activity within the District only if one of the follo�vin� occurs: Befof�e or' tirithin fire years crfter cert�ccrtion of the Distr•ict, the r�eventtes are cictt�ally Paid to a thir�d par�ry irith respect to the actiti�iry; Bonds, the pr�oceeds of tia hich mirst be irsed to fznance the activi/}�, are issued and sold to a third pnf�ry befor•e or• iridii�z fii•e }'��rrs crfter certifzcation of the District, the revenz�es aee spent to repc�y the Bonds, t�t�d the proceeds of the Bonc�s either �rre, on the clnte of issuance, reasona6ly expected to be spent before the enc� of the latter of (i) the fzve yecrr periocl, or (ii) a reasonab7e temporary period u ithiri the meaning of the I: ASHARED'.GHURS`6139urenavf «pd �' q4-I�Y use of that tef•nt undee Section 1-G8(c)(I) of tl�e L�tenaal Re�•enue Code, or deposited in a rerrsonably t•equirecl rese�l'e or f'eplacentent firtzd; 3. Binding conlracts with a third pnt are e;7terecl into for• perfor•nxa�ce of the actiriry before or irithi�z five yern�s after cer�tification of the Distr�ict crnct the rei•enues are spet7t zrnder the contr•achral obligation; or -1. Costs isith res�ect �o the actiriry �rre pnid before or uithin fire yems after certifrcation of the Dislricl m7d the revenues trre syent to reirnburse cr party for pcp�rnent of tlze eosts, incluclir2g interest on unrein:bztrsecl ec�sts Therefore, one of the above four events nnut occur b} approximatelti September, 2002. �V. Use of Tni Increment All reveuuzs derived from tas increment shatl be used in accordance �� ith this ta� increment financin� plan, and pursuant to Minnesota Stahrtzs, Section 469176, Subdivisions 4 and 4j. XVI. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes, Section 469.177, Subd. 4, the City has reviewed the area to be i�iduded iu the Distriet and has uot found properties for �cl�ich builciing pemiits have been issued durin� the 18 months inunediately precedin� appro` al of tlle Plan by the City. XVIL Escess Ta� Increments Pursuant to Minnesota Statutes, Section 469.176, Subd. 2, in any year in which the tax increment esceeds the amount necessary to pay� the costs authorized by the tas increment plan, includin� the amoLmt necessary� to cancel any tax levy as provided in Minnesota Stahrtes, Section 475.61, Subd. 3, the City shail use the excess anioLmt to do any of the follo�� in�: 1. prepay the outstanding bonds; 3. discharge the pledge of tax increment therefor; 3. pa� into an escro�� account dedicated to the payment of such bonds; or 4. retum the escess to the County Auditor for redistribution to the respective taxing jurisdicCions in proportion of their taY capacity rate. XVIII. Local Contribution Requirement For tax increment financing disTricts which request certification after June 30, 1944, Minnesota Statutes, Section 2731399, Subd. 6(d) provides that the City mac be exempT from local �overrunent aid or homestead and aaricultural credit aid penalry if the HRA and/or the City makes a local contcibution to the Project equal to fice percent of the ta,e increment. The HI2A and the City elect to make the local contributions in lieu of the state aid penalty�. Five percent of the firture ��a1ue of the tat increments espected fo be coiVected from the District, is approximately [$845,000}. The HRA and the City will K \SHAR�D`.GEURS\6139arennh f t� pd � � 9�i-13Y make an up-front local contribution (rather than a yearly contribution) in excess of that amoimt. The loca] contribution is expected to be paid prior to August l, 2000. Pursuant to Section 2T.1399, 5ubd. 6(d)(2), if the HRA or City fails to make the required contribution for an}� year, tlie state aid reduction �ti'ill appl}� for that }ear. The state aid reduction ��ill be equal to the greater of (A) the required local contribution (�% of tax increments collected that } ear) or (B) the amount of the aid reduction that applies tmder Subdivision 3 of Section 273.li99. XI1. Fiscal Dis�rities The Cit} and the City� have elecfed to compute Fiscal Disparities contcibution for the District in accordance w'ith Section 469.177, subdivision 3. paragraph a. 3i�. Requirements for Aareements �FiEh De� eloner. Pursuant to Minnesota Statutes, �469.176, subd. �, no more than 2�%, bp acreage, of the propert}' to be acquired in the District as set forth in the Taz Increment Financino Plan shall at any time be owned by the HRA oe the City as a result of acquisition with the proceeds of boncis issued pursuant to Section 469.178, without the HRA or City having, prior to acquisition in excess of 2�% of the acrea`e, concluded an agreement for the development or redevelopment of the property acquired and ��hich provides recourse for the HRA or City shotild tlze cieveloputeut not be completed. XXI. Assessment Aareement. Pursuant to Minnesota Statutes, §469.177, subd. 8, the HRA or City may enter into an a,reement in recordable form with the Developer of propem' �cithin tlie District ��hich establishes a minimtmi market value of the land and compieted impro��ements for the duration of the District. The assessment agreement shall be presented to the assessor �vho sh111 re� ie�r� the plans and specifications for the improvements constnicted, revie��' the market � alue pre� iousfy assigned to the land upon �vhich the impro��ements are to be constructed and. so long as the minimum market value contained in the assessment agreement appears. in thejudgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market calue a2reemeut. kXII. De� elopment and Job Creation. To the estent applicable, the HRA ar City agrees to compl}' «ith Minnesota Statutes, § 1163.991, �vhich states that a business recei� ing state or local govecnment assistance for economic development or job groti`1h purposes, includina tas increment financino, must create a net increase in jobs and meet waQe level goals in Minnesota ��ithin two years of receivina assistance. 1: �\SHARCD\G CURS`613 )arenat� ( �� pd 1 � aq -i�� APPE\iDIX A [list of parcels in neti� tas increment district, map of district and map of project areaJ f:�\$HARED��.GEURS\6139arenanf ��pd 16 a9-��' � � � � � 3 � � � � � � vo� �4% � � � � e� � a� � � �. v .� �. � � � � � � i. U � X C3 � c � � � O � a � � w � � c � � s, eYa � � � � U � � Ci C � � a u c Y. CC �°' c aa � p � � -z� � � �- U Q � �C � (6 � C � Q � U � O Q_ � C (�J � C1. O W � N � � � � U � � � .�-. � � > Q3 (� U � [� � Qi Qi � U C Y. f6 � � Q) � � O C> � � � @� � QJ U � � L a- C � > aJ (r � 1 � �! q,9 • 13 Y lnterdepartmental Memorandum CITY OF SAIVT PAUI. DATE: January 27, 1999 TO: Shari Moore, Depury City Clerk Nancy Anderson, Cotmcil Research F120M: Bob Geurs, PED � I RE: Public Hearing Shari, attached is a public hearing notice and map that needs to be published for amending a taY increment financing plan for Block 39/Arena Tax Increment District �vhich is part of the legal requirements for the issuance of City financing for the RiverCentre Arena �vhich will be considered on February 10, 1999. Also attached is a copy of the amended TIF Plan for the City Clerk's office. When published, please fonuard a copy to mz of the notice as it appears in the legal ledger and ne�vspaper. Nancy, the Office of Financial Services will route two City Council Resolutions authorizing the Bonds and related documents for the RiverCentre Arena financin�. There also �vill be t�vo HRA resolutions for Februar}• 10 approvin� TIF Plan and HRA entering into a Pizdge Aereement for the Arena financing. Thanks for your help. RBG/lle attachments cc: Joe Reid Shirley Davis \�Ped.SYS3SHARED',GEURS`mooreandeaonmemo.apd a9-i��' NOTICE OF PUBLIC HEARiNG ON AMENDMENTS TO THE TAX INCREMENT FINAiv`CING PLAI�T FOR THE BLOCK 39/ARENA REDEVELOPMEI`'T TAX NCREMENT FINA?��CING DISTRICT NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Paul, Minnesota (the "City") ��ill meet in the City Council Chambers, City Hall, IS West Kellogg Boulevard, Saint Paul, Minnesota, on February ]0, ]999, at 5:30 p.m., or as soon thereafrer as the matter may be heard, for the purpose of conducting a public hearing on the proposal of the Housinj and Redevelopment Authority of the City of Saini Paul (the "Authority") to amend the Tas Increment Financina Plan for the Block 39/Arena Redevelopment Tas Increment Financing District located �cithin the Seventh Place Redevelopment Project Area (the "Redevelopment Projeet Area"). A draft copy of the proposed amendments to the Tax Increment Financing Plan, alon� with a11 attaclunents and exhibits thereto, �vil1 bz acailable for public inspection at the office of the City Clerk, Room 170, City Hall, and with the Authority, at the offices of the Department of Planning and Economic Development, City Halt Annex, 13` Floor, 25 �Vest Fourth Street, Saint Paul, Minnesota, durin, regular business hours. A map indicating the boundaries of the Tax Increment Financing District and the Redzvelopment Project Area is set forth belocv. A11 persons interested may appear and be heard at the time and place set forth above. CITY OF SAINT PAUL (s/ Fred Owusu Citti Clerk \Ncd`sysZ�SENRED'�,GEURSVblock39publichrgnotice apd °lg-��P' � � � ✓ � � � � � � � .� r6 L � � .� � � �.tl.� � L� U .� � N Q � C � � � U C Y. � F- .r � W � � � Q) l c� � w CY c3 C � Q � m U O CD U .� u� � C G: � m L �i � L tU f � a� E o_ 0 U � 4� N C U O � i;��( v G (6 'C1 � � O (X'i U a 'o � � � m � a 0 m � N 'r W CC a� U � � � C N a W C� U .` N Q C G � G? Y U � � � c m E a 0 c� C7 � C� G' e� U r C L <- C � � U� � � �. I � q� � �� NOTICE OP PUBLIC HEARING ON AMENDMENTS TO THE TAX INCREMENT FINANCING PLAN FOR THE BLOCK 39/ARENA REDEVELOPMENT TAX INCREMENT FINAI3CING DISTRICT NOTiCE IS HEREBY GIVEN that the City Council of the City of Sanat Paul, Mianesota (the "City") will meet in the City Council Chambers, City Hall, 15 West Kellogg Boulevard, Saint Paul, Minnesota, on February 10, 1999, at 530 pm., or as soon thereafter as the matter may be heazd, for the purpose of conducting a pubiic hearing on the proposal of the Housing and Redevelopment Authority of the City of Saint Paul (the "Authority") to amend the Tax Increment Financing Plan for the Block 39/Arena Redevelopment Tax Increment Financing District located within the Seventh Place Redevelopment Pro}ect �rea (the "Redevelopment Project Area"). A draft copy of the proposed amendments to the Tax Increment Financing Plan, along with all attachments and exhibits thereto, will be available for public inspection at the office of the City Clerk, Room 170, City Hall, and with the Authority, at the offices of the Department of Planning and Economic Development, City Hali Annex, 13`" Floor, 25 West Fourth Street, Saint Paul, Minnesota, during regular business hours. A map indicating the boundaries of the Tas Increment Financing District and the Redevelopment Project Area is set forth below. Al1 persons interested may appeaz and be heard at the time and place set forth above. Dated 7anuary 28, 1999 Shari Moore Deputy City Clerk (7anuary 30, 1999) �, � �� u � � < m � r. 7 � A1 Q � � rD � ro � m 0 � � m � .... � v x � � m � m � � � � � � � i�Qj � 0 � � s� � m � < m 0 '� � ro � � � X 3 � � ro � m � C � n ci qq _13�' � ro c � � 3 � � Q � '.YI m n. ro < m 0 v � m � � � 0 ai n m 0 � � � � � � 0 n w � D m � � ,�.7 ro S� ca t ro 0 � 3 � � .� � v x � � m � :� � .,. � � � C)� --1 - '� � �.. � � �� a-r � � 3v � �. 'O � � � 0 G � � � � �