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86-1315 WNITE - CITV CLERK PINK •- FINANCE COUflCll �/{�O CANARV iOEPARTMENT G I TY OF SA I NT PAUL File NO. " ° � /�� BLUE -• MAVOR Ci�`� Attny/JTH . . �Co cil Resolution ,--- - Presented By � � Referre Committee: Date Out of Comm ttee By Date RESOLUTION PROPOSING POLICY ADOPTION AND A.MENDMENT OF THE SAINT PAUL COMPREHENSIVE PLAN: REPORT OF THE CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES UJH EAS , pursuant to the requirements of Resolution, C uncil , File No . 84-1 31 , the Findings and Recommendations of the C'tizens Commissi n on Bonding And Financing Practices dated January 22, 1986, we e pr sented on that date to the Mayor and City Cou cil and subs quen ly referred to the Council Development and Tr ns- portatio Co ittee; and T�1HE EAS , the Development and Transportation Committee ver several eeti gs reviewed the findings and recommendation o the Commissi n Re ort including minority recommendations and ha caused to be pr pare a written Committee Renort On The Policy Rec mmen- dations f th Citizens Commission On Bonding And Financing Prac- tices fo pre entation to the City Council with recommendat on for approval • and WHE AS , the Policy Recommendations impact the City' s apital Allocati n an General Obligation Debt Policies and suggest re- visions n th Economic Development Strategy, Downtown Sain Paul/ Framewor For evelopment 1985-1990, and Plan For Housing C rr��- vonents f th Saint Paul Comprehensive Plan and in the Lo�� r Income H usin Strategy as approved and recommended to the ity Council y the Saint Paul Planning Commission; and WHE AS , ursuant to Minnesota Statutes Section 462 . 35 Sub- division 2 an 3 amendments to the Comprehensive Plan may e proposed by Ci y Council Resolution but no amendment to the COUNC[LMEN Requested by Department of: Yeas �� Nay Nicosia � In Favor Rettman � Scheibel so�ner, __ Against BY Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Coun .il Secre ary BY By� Approved by Mavor: Dat Approved by Mayor for Submission to Co ncil By� - — By WMITE - C�TV CLERK PINK �- FINANCE COUnCII CANARV `DEPARTMENT ITY OF SAINT PAUL u �� ' �/� B1.UE - MAYOR File 1,0• � Council Resolution Presented By Referred To Committee: Date Out of Committee B Date -2- Comprehensi e P1 n may be acted upon by the City Council unles it has receive the recotmnendation of the Planning Commission or ntil 60 days hav ela sed from the date a proposed amendment has be n submitted b the City Council to the Planning Commission for i s recommenda ion; ow therefore, be it RESOL ED, b the Council of the City of Saint Paul that t e Committee eport On the Policy Recommendations Of The Citizens Commission On Bo ding And Financing Practices By The City Dev lop- ment And T anspo tation Committee and the revisions to the Sa' t Paul Compr hensi e Plan therein contained are hereby proposed for adoption a offi ial policies of the City of Saint Paul and a amendments to t Saint Paul Comprehensive Plan, and the City Clerk is d rect to transmit the Committee and Citizens Comm ssion Reports to the aint Paul Planning Commission for its review nd recommenda ion ' accordance with the Minnesota Municipal Pla ning Act. COUNCILMEN Requested by Department of: Yeas � Nays � Nicosia [n Favor Rettman Scheibel � Sonnen __ AgalnSt BY Tedesco Wilson Form Approve City At or e Adopted by Council: Date �— Certified Pas•e b oun .il S a BY � By- Appro by :4lavor. Da e _ SEP 9 1986 Approved Mayor Eor Submission to Co ncil BY - — BY BLISHED S E P � `� 1986 t"�.� y ,:; d :' �''�E2 �"� r s:-� � � F : ��.°t r;��,� .- :�- �y J,✓.:` s�, � y; r r T-..' �.r � 1 1 � d ��: � ��t � x . q �jk,t�, j".�l��j �Aa � yt�� ,� ��_3�a, c. 5� �� r�y'�"_.` �' I F _, �iF(;��" r r°Y t"., �. .;I � �T,' �,X "t �+� l��. � �; n i � 7. ,/ y �' 1 � 4 r � 4�- 7 � . ♦� ��l� � ��r�� :�b -A �i * � � ` }} '�� 1 ,t* � � g Y 1J s � � �; 1 ?�A : F r �, � - '.� � -- i � ya �;r,�i! .l � ��": y �t fiti ;� �, 'F Y u. � r'� ,� P It � '*4 � . � � � � i �k � � � a'ti ° r .� � � . � � � y 1 . 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L � i� 1', � � � t rA {f � ., �.h 1 a� � � 1� - a i l ;; i : F ��3r> z r � i � '" + � 1 + � ��.v 1 4 ' " � " ��y � � �~� x � F � � �' � ,�''� , x �� N - � Y^ t - ¢ e '�3-? ; 1 r �t� � � % , . � t' � ti p �1 ,p` � ._. _a3�, ,. . � � . . , . ... ..� f:� #' . . , _. ... . "__ . .... �. d .��:�.. . . __� +..§M._ ,� .,.n �., _ .. � ._�3„:.W... , y. �'� /3j�'r' �3 COMMITTEE REPORT ON THE POLICY RECOMMENDATIONS OF THE CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICE BY THE CITY DEVELOPMENT AND TRANSPORTATION COMMITTEE ' OF THE ' SAINT PAUL CITY COUNCIL The Hon. William Wilson, Chair Th Hon. John Drew The Hon. Kiki Sonnen Committee N,embers The Hon. Chris Nicosia Alternate September 2 , 1986 . � • . Prepared on Behalf of the Committee By SUSAN E. KIMBERLY Staff Consultant to the Commission � � � �� -i3�s - 2 - - CI Y DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2, 1986 . SUMMARY OF COMMITTEE ACTION The C ty Development and Transportation Committee f the Sain Paul City Council reviewed the findings and recommen ation of the Citizens ' Commission on Bonding and Financin Prac ices at five meetings held on June 16, July 14 , July 28 , Augus 11 and August 25 , 1986 . On Au ust 25 , the Committee agreed to forward thi report t the ity Council with a recommendation for passa e. NOTES ON THIS REPORT The ommittee' s Report is based on a Special Summ ry Report p epar d for the Committee of the Findings and Recommen atio s of the Citizens Commission on Bonding and Financin Pra tices dated June 3 , 1986. Footnotes in this report refer o City economic development policy documents -_�� reviewe - �y t e Commission. The numbers in these footnote refer t the age number of these policy documents . These _ documen s are abbreviated as follows in this report: The ^`"�� - -,/Economi Deve opment Strategy (EDS) , The Capital Allocati n - Policy CAP) , The General Obligation Debt Policy (Not _- Abbrevi ted) , The Interim Report on Downtown Development (The Interim Repor ) , The Plan for Housing (Hsg. Plan ) , and Th Lower Income ousi Strategy (Not Abbreviated ) . — � �-- - TABLE OF CONTENTS SECTION I GENERAL STATEMENTS OF POLICY The Cit ' s S rategy for Economic Development. . . . . . . . . . . . . . . . . 4 . . The Ci ' s R le in the Economic Development Process. . . . . . . . . . 5 - � The Ci y' s E onomic Development Goal. . . . . . . . . . . . . . . . . . . . . _ 6 The Ci y' s E onomic Development Objectives. . . . . . . . . . . . . . . . . 6 SECTION II - UNDAMENTAL ECONOMIC DEVELOPMENT POLICIES Fiscal Integrity and Financial Restraint CreditRati . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . � � -i3� _ 3 _ . GI Y DE ELOPMENT AND TRANSPORTATION COMMITTEE REPORT ON THE POLZCY RECOMMENDATIONS OF THE �IT ZENS COMMISSION ON BONDING AND FINANCING PRACTICE September 2, 1986 TABLE OF CONTENTS (Continued) FinanciaCond 'tion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Overlapp'ng Ge eral Obligation Debt. . . . . . . . . . . . . . . . . . . . . . . . 8 Minimal irect Financial Participation. . . . . . . . . . . . . . . . . . . . . . . 8 FinanciaLeve age. . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . 9 Returno Inve tment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 CoverageRatio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Minimumeturn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Pr perty Tax Base Increase and riaintenance TaxBase Incre se. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Non-Resi entia Tax Base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Maintena ce of Existing Tax Base. . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Job Opportunities JobOppo tunit es. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Equal Em loyme t Opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Job Trai ing a d Job Placement Programs. . . . . . . . . . . . . . . . . . . . 11 Affirmative Ac ion, First Source Employment and Set-Asides. . . 12 Subsidylloca ion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Creation of a ob Creation Investment Fund . . . . . . . . . . . . . . . . . . . 13 Expansion of t e Port Authority' s Area of Operation. . . . . .-. . . . 13 ommercial and Industrial Development - � Neighborh od D velopment. . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . 14 4 • - Downtown evel pment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 _ Industria and Large Commercial Development. . . . . . . . . . . . . . . . . . 15 . Housing Development and Maintenance � HousingS pply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .: . . . . . 16 Housing A ford bility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 LowerInc me H using. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 HousingA sist nce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Maintenan e of Supply of Lower Income Housing. . . . . . . . . . . . . . • . 18 Creation f a ower Income Housing Fund. . . . . . . . . . . . . . . . . . . . 19 Neighborh od Q ality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 � . Neighborh od M intenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 � � � � � -�3i�f - 4 - _ CI Y DE ELOPMENT AND TRANSPORTATION COMMITTEE REPORT ON THE POLICY RECOMMENDATIONS OF THE CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICE September 2, 1986 SECTION I GENERAL STATEMENTS OF POLICY THE CITY' S STRATEGY FOR ECONOMIC DEVELOPMENT (See Pages 27 - 32 of the Co ission' s Findings and Recommendations dated January 22, 1986 ) In or er to fulfill its goal and attain its objec ives, the City has a opted a "market responsive" Economic Develo ment strategy whic incorporates a very wide range of activitie and is consi tent ith the relatively broad terms used by the ity to defin its ole in the Economic Development process. ( ee the disc ssio of the City' s role in the Economic Developm nt process elow. ) � Under its present strategy, the City looks to the marketpl ce f r most development proposals and financing p ans. Market f rces and economic trends have more weight under t e - present trat gy than the redevelopment plans of the past. Typicall , ur an renewal programs began with a fairly deta led plan for rede elopment, proceeded with site clearance and assembly and hen attempted to find parties willing to imp ement the plan Un er the present strategy, the City itself oft n - ini.tiate pro ects which are responsive to the marketplace - .` _ however, the lanning process is likely to be more partici atory _ than dir ctiv and the role of the City in the planning pr cess is somew at m re -likely to be that of a mediator rather th n that of n ar itrator . � In e onomic terms, this strategic shift is largel the . result o a c nsidered decision by the City to alter the m thod - �- ' of finan ing conomic Development activities. The City determin d to maximize its use of revenue bond financing techniqu s, n n-matching grants and other Indirect Investm nts while mi imiz ng its use of general obligation bonds and D'rect . Expendit res. In addition to changing the manner of finan ing Economic Deve opment activities , the City also broadened i s scope of Econ mic Development activities and began the utilization o a veritable cafeteria-full of alternative financial tec niques. Still, the City has greatly reduced its dependen e up n Direct Expenditures borne by local taxpaye s and placed much greater emphasis on Indirect Investments. , -/3i� _ 5 _ - � CI Y DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICE September 2 , 1986 It is our opinion that the City' s Economic Develop ent strategy works well and remains appropriate to current circumst nces . To the extent possible, the City should ret in its flex' ble, arket responsive strategy as well as the too s it has used in th implementation of this strategy. The City as a stake in maint ining the availability of the financial tool which it has u ed in the past and should make those efforts necessar to p eserve a reasonable level of tax-exempt fin ncing and tax 'ncrem nt financing authority for Economic Develop ent purposes Shoul these efforts fail, however, the City is s ill in a pos tion o maintain a substantial Economic Developme t program. The ort Authority is positioned to carry on its activiti s wi a minimal level of technical adjustment ev n � under wo se-c se circumstances. The situation facing PED ' s more com lica ed , but resources available to the PED are s ch that a c efu restructuring of them would likely allow th PED to maint in a substantial level of Economic Development _ financin act'vity. Alth ugh the resource�s available to both agencies are consider ble, it is important to understand that they must be used pri aril as secondary security in order to maximize heir usefulne s . iven the present magnitude af the City' s pub icly assisted Econ mic Development program, if the Port' s reser es or the PED' fun balances were used for direct loans or subs dies ' _ _ they wou d be exhausted in a matter of weeks. _. ,• - NO C NGE IS RECOMMENDED TO EXISTING POLICY. To he - � extent ssib e, the current policy should be maintained. HE CI Y' S ROLE IN THE ECONOMIC DEVELOPMENT PROCESS - (See Pages 32 - 35 ) The City' s role in the Economic Development process is to serve as a facilitator and guide rather tha a . replace ent f r private sector initiatives and that in wo king with th priv te sector , the City will be guided by the followi g pri ciples : � 1. That the City ' s primary responsibility ' s to its cit zens nd that the impact on these citizens shall erve as the rimar basis for judging all Economic Development activit es , 2. That the City will minimize its own fin ncial involve ent 'n private Economic Development activities an will � � � -/.3��; - 6 - CIT DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CITZ ENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2, 1986 utilize i s .own limited financial resources in an efficient and prudent m nner , 3. That the City should make a special effor to serve the needs of its economically disadvantaged citizens, 4 . That development in the City should empha ize preservat on, aintenance, rehabilitation and reuse of exis ing facil�itie , an protection of the natural environment, That development in the City should contr bute . to maximu ene gy efficiency, and That development in the City should contr bute toward ma imiz tion of economic self-reliance. HE CITY' S ECONOMIC DEVELOPMENT GOAL - (See Pages 35 - 36 ) �. .. .,,=a_ :. . ithi a context of fiscal integrity and financial restrain , the City of St. Paul is committed to: . Maintaining a strong, diversified and expandin loca economy which will maximize economic opportun ' ties or all of its citizens, . . Making a special effort to provide econo ic _ : and _empl yment opportunities for its economically disadvan aged � -- - citizens and . Providing the most attractive possible - resident al li ing environment for all of its citizens -- . regardle s of conomic circumstances. � - ' TH CITY ' S ECONOMIC DEVELOPMENT OBJECTIVES ;(See Pages 36 - 37 ) F SCAL .INTEGRITY AND FINANCIAL RESTRAINT 1. he City desires to preserve and improve its redit rating a d ge eral financial condition. 2. he City desires to minimize its direct finan ial particip tion in Economic Development activities . - 3. he City desires to increase its property tax base. ' � � _,3�s _ , _ CIT DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CITI ENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2 , 1986 A STRONG, DIVERSIFIED LOCAL ECONOMY . T e City desires to maintain and expand job opportuni ies vailable to all of its residents. 5 . T e City desires to make a special effort to maximize job o portunities for its economically disadvantag d residents. 6. T e. City desires to retain and attract a wide variety f for profit businesses as well as non-profit organiza ions nd governmental agencies. 7 . T e City desires to assist appropriate busine ses of all t pes become established, to expand , to relocate or to , locate w thin the City. 8 . he City desires to encourage Economic Develo ment which ma imiz s energy efficiency and economic self-relian e. 9 . he City will discourage projects which wiZl negative y im act the environment or negatively impact his oric preserva ion. A SAF , ATTRACTIVE RESIDENTIAL LIVING ENVIRONMENT - 10. The City desires to provide and preserve a ide - variety of ho sing opportunities for persons of all econo ic - circums ances. - , � � � 11 . The City desires to maintain, preserve and mprove the cha acter , quality and diversity of its residential neighbo hood . 12 . The City desires to make a special effort t maintai the supply :of housing units available to its low r ' income esid nts . _ 13 . The City recognizes the need for a safe � environ ent or its residents. , � � � � �� i3 ti�' _ 8 _ CIT DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CITIZENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2, 1986 SECTION II TH CITY' S FUNDAMENTAL ECONOMIC DEVELOPMENT POLICIES POLICIES RELATING TO FISCAL INTEGRITY AND FINANCIAL RESTRAINT Credit Rating (See Page 38 ) 1 . C edit Ratin . The City will seek to obtain d maintain a " " rating in order to reduce long-term inter st expense n its obligations. (See CAP, Page 4 ) NO C NGE IS RECOMMENDED. Financial Condition (See Pages 38 - 39 ) 2 , inancial Condition. The City will seek to maintai ._*he iscal integrity of its operating, debt servi e and , � capital impro ement budgets in order to provide essential services, mai tain public infrastructures and promote the _ _ expansi n of he private tax base. (See CAP, 4 ) . - NO C ANGE IS RECOMMENDED. Over lappi.ng Debt (See Pages 39 - 41 ) � _ - ._. _ 3 . Overla in General Obli ation Debt. The Ci y will - reduce ts p r capita overlapping general obligation debt ratio to a le el o $90D or less by 1985 and reduce its overlap ing debt as a pe centage of Estimated Market Value to six per cent or less duri g the same time-frame. (See General Obligat on Debt Policy ) - - � NO HANGE IS RECOMMENDED. The City achieved the above stated goals prior to 1985. A revised General Obligation Debt Policy is ex ected to be developed in the reasor�ably near future Minimal Direct Financial Participation (See Pages 42 - 47 ) 4 . Minimal Direct Financial Partici ation. Th City will m nimi e its own financial involvement in private E onomic Develo ment activity and will utilize its limited fiscal � resour es e ficiently and prudently within leverage and eturn � � �-�3�,5 - 9 - � CI � Y DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICE September 2, 1986 on inves ent riteria established by the City. (See EDS, ) . NO C NGE IS RECOMMENDED. Financial Leverage (See Pages 47 - 50 ) 5 . F 'nancial Levera e. Minimum leveraging is no mally 1 �6 . (E ch do lar of public investment should leverage at least six doll rs of private investment. ) This ratio may be as ow as 1 :3 if t e pro 'ect is: . Directly associated with concentrated neighbor ood r vitalization efforts. � b. Creating jobs for City residents. c. Directly associated with conservation of non-rene able energy sources or development of energy effi ient alternat ves . d. Directly related to the development of 1 w and moderate inco e housing. e. If the project includes adequate space f r a licensed chil -care center located within the project or i the develope of he project pays a one-time charge equal to $ per _ _ square f ot o leasable floor space for day care services r _. - R � faciliti s wh ch will serve employees of the 'project. (Se CAP, • - 14 ) . ' Return on Investment . (See Pages S1 - 56 ) � 6 . eturn an Investment. The annual return�in he , form of new p operty tax revenues shall be, at a minimum, 12 per , cent of the C' ty' s investment unless the project is direc ly associa ed wi h the enumerated exceptions to the leverage policy. (See CAP, 14 ) . _ - NO C ANGE IS RECOMMENDED. . � � � �� 3�� - �o - � CI Y DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2, 1986 . Coverage Ratio (See Page 56 ) HE F LLOWING IS A NEW POLICY: 7 . C vera e Ratio. Net investment measured in te ms of the a nual hange in the Estimated Market Value should generate addit onal property tax revenues at current rates t least eq al to the current direct costs associated with the City' s E onomi Development program. In making this computat ' on, t e tax levies of the City, the School Distri and the Coun y sho ld be taken into account. Minimum Return on Investment ( See Page 56 ) 8 . 'nimum Return. Projects associated with the enumerat d exc ptions to the leverage policy are subject t the followin mini al return policies : � a. I no case may the return in terms of tax rev nues be less han e cost of additional services required. (S e _ _ CAP, 14 ) - b. n all cases, additional tax revenues generat d from a p ojec shall be sufficient to repay the City' s investme t ov r the course of the lifetime of the asset _ _ provided (S e CAP) . _ " ..---- - NO C NGE RECOMMENDED. Property Tax Base Increase - - (See Pages 57 - 62 ) � 9 . ax Base Increase. The City shall seek to in rease . , its tax ase t an annual real-dollar growth rate of at le st �- ' two per cent f the City' s Estimated Market Value. (See S, 4 ) . NO C ANGE RECOMMENDED. Non-Residential Tax Base (See Pages 63 - 64 ) 10. on-Residential Tax Base. The City shall ma e a special effor to increase its non-residential tax base i order to mini ize t e tax burden on City residents. (See EDS, ) . NO NGE RECOMMENDED. � (�-/3/�5 - �1 - CIT DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT , N THE POLICY RECOMMENDATIONS OF THE CITIZENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2 , 1986 A�aintenance of Existing Tax Base (See Page 65 ) 1. aintenance of Existin Tax Base. In order t maintain ' ts e isting tax base the City shall discourage th use of acquisition as a redevelopment tool. (See CAP) . POLICIES RELATING TO � EMPLOYMENT OPPORTUNITIES Job Opportunities (See Pages 6? - 74 ) THE F LLOWING IS A REVISION OF EXISTING POLICY: ' 1 . b O ortunities. The City shall seek to in rease the numb r of job opportunities available in the City. Th City will att mpt o achieve a goal whereby City Covered Employ ent will equ 1 or exceed the level of employment projected for the City of t. P ul by the Metropolitan Council of the Twin C ties Area . ( ee C P, 14 ) . Equal Employment Opportunity (See Pages 74 - 90 ) , THE OLLOWING IS A REVISION OF EXISTING POLICY: _ _ _ 2, ual Em lo ment 0 ortunities. _ The City sha I -. � ., � maintain its ommitment to Affirmative Action principles a d ' take th se st ps necessary to assure that the City' s low-i come ' and min rity esidents share in the City' s economic growth. It is the oal o the City, through its Economic Development activit'es ,� t achieve equal job opportunities for all of its residen s. T ward this goal, the City will strive to_ach'eve a ' rate of emplo ment among women, racial minorities and • handica ped p rsons that is egual to the .rate of employme t for • that of its p pulation as a whole. (See EDS, 14j . ob Training and ' Job Placement Programs (See Pages 74 - 90 ) • 3. Job Trainin and Job Placement Pro rams. Th City shall c ntin e to expand its involvement with job trainin and job see ing rograms and should more closely integrate th se � � � . -i3,c-s - 12 - CI Y DEV LOPMENT AND TRANSPORTATION COMMITTEE REPURT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS. OMMISSION ON BONDING AND FINANCING PRACTICE September 2, 1986 activiti s wit the City' s Economic Development program. ( ee EDS, 14 ) . NO C NGE RECOMMENDED. Affir ative Action, First Source Employment and Set Aside Requirements (See Pages 74 - 90 ) THE F LLOWING REPRESENTS NEW POLICY: On M 29 , 1986, the City Council adopted languag essentia ly s " ilar to the following: 4 . ffirmative Action, First Source Em lo ment a d Set-Asid Re irements. In order to more closely integrat its Economic Deve opment Activities with its desire to assist economic lly isadvantaged residents of the City, the City shall require hat evelopers and/or firms receiving financial a d/or --r financ� - ass stance associated with a commercial or indus rial - project alue in excess of $1, 000, 000 shall agree to: - - a. Demonstrate compliance with a carefully ' considered an reasonably constructed affirmative action p licy and pla , b. Execute, with appropriate City officials, a - careful y con idered and reasonably constructed binding fi st - _ - source mploy ent agreement, and � c. _Comply with �the City' s set-aside requir ments for min rity, women and small business enterprises . - _ Subsidy Allocation (See Pages 74 - 90 ) - TFiE FOLLOWING IS A REVISION OF EXISTING POLICY : � . - 5. Subsid Allocation. Consideration, includin project subs 'dy allocation, should be given to projects w ich � will re ain xisting jobs or create new jobs for City res dents and spe ial onsideration should be given to those projec s or program whi h create job opportunities targeted for economi ally disadvantaged residents of the City. -�3�.� - 13 - � CITY DE ELOPMENT AND TRANSPORTATION COMMITTEE REPORT . ON THE POLICY RECOMMENDATIONS OF THE CI IZENS COMMISSION ON BONDING AND FINANCING PR.ACTIC September 2, 1986 THE OLLOWING IS A NEW POLICY: Creation of a Job Investment Fund (See Pages 87 - 89 ) 6 . reation of a Job Creation Investment Fund. he City sh 11 es ablish a Job Creation Investment Fund for th purpose of pr viding incentives for the creation of emplo ent o'pportu ities for economically disadvantaged citizens. I order to prov'de in ' tial funding for this program, the City sho ld conside the se of tax levy funds, general obligation bo d proceed , UD� loan repayments, foundation grants, corpor te contrib tions and any other appropriate source of funds. In stablishing this Fund, it is important to ' acknowl dge e experimental nature of this program and t e City' s eed o develop a program and process that allows or trial a d er or with several specific initiatives in orde to determi e fr m among several alternatives the most effect ve program poss 'ble. Dur ' ng its first two years of operation, the Cit shall fund th ' s pr gram from appropriate sources in an amount n t less than $2 0 , 00 for each year . C sideration of Expansion of Port Authority Geographic Area of Operation - - _ (See Pages 89 - 90 } -. . � ' ' THE FOLLOWING IS A NEW POLICY: ' 7 . Additional Stud of Ex andin the Port Auth rit ' s Geo ra hic � A ea of O eration. In light of the fact that job opport nitie are growing at a faster rate in suburban - commun ' ties han they are within the boundaries of the C' ty and, • in lig t o.f he fact that it is increasingly difficult t • assemb e lar e parcels of land appropriate for major ind strial develo ment ctivities within the City limits, considera ion should be gi en to seeking legislative change which woul allow the Po t Au hority to finance projects located in adjoin ng suburb n co unities. Projects undertaken outside of th City • of St. Paul should be structured in such a fashion that maximi es t e City' s ability to provide jobs for its cit zens. , ' �� ' ��1�� - 14 - � C TY DE ELOPMENT AND TRANSPORTATION COMMITTEE REPORT ON THE POLICY RECOMMENDATIONS OF THE CI IZENS COMMISSION ON BONDING AND FINANCING PRACTIC S September 2, 1986 • POLICIES RELATING TO COMMERCIAL AND INDUSTRIAL DEVELOPMENT City policies intended to encourage the retentio or attract' on of commercial and industrial development, rehabil' tatio or expansion are considered under three categor ' es: eighborhood and Retail areas, the Downtown rea and lar e-sca e commercial and industrial development. Neighborbood Development ( See Pages 90 - 94 ) . THE FOLLOWING IS ESSENTIALLY THE SAME AS EXISTIN POLICY: 1. Nei hborhood Develo ment. The City shall co tinue to rela e it commercial development efforts with neighbo hood revital' zati n efforts and shall continue to emphas°ize jo'nt public- riva e revitalization programs which target City --'-� improvenents financial and technical assistance to areas which - offer he gr atest potential for neighborhood revitaliza ' on. (See E S, 2 ) _ In ore specific terms : - a. The City shall base its neighborhood commer ial d velopment efforts on a recognition of the - ' interd pende ce between neighborhood commercial areas an . the _ _ - adjace t res ' dential communities. Development shall min mize '— advers env' onmental and aesthetic impacts on _adjacent � proper ies� nd provide buffering between residential and indust ial and uses, adequate parking and safe transpor ation - access b. The City shall develop a clear underst nding � � ' . of the resp ctive roles played by the neighborhood comme cial areas, the ajor retail centers and the downtown and sho ld encour ge t e complementary development of these sectors and - stron ly di courage proposed developments in one sector hich would be in direct competition with another sector. c. The City shall continue to target its aid for neigh orhoo commercial revitalization to the most appr priate areas d. The City shall continue to give prior ty to assis ing e retention and expansion of existing small � comme cial firms within the City. , -�3i.5 - 15 - CY Y DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT . N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICES . September 2, 1986 The City shall continue to encourage new commercia dev lopments in neighborhood commercial areas an should es abli h specific assistance criteria in order to d cide which dev lopm nt efforts to assist. . Development shall be consistent with zoni g ordinances, th comprehensive plan, the housing plan, appli able redevelo ent lans and other similar ordinances, resolutio s, regulati ns an plans of the City. { See EDS, 8-9 ) Downtown Development (See Pages 95 - 96 ) THE F LLOWING IS ESSENTIALLY THE SAME AS EXISTING POLICY: 2. D wntown Develo ment. The City shall endeavo to reestabl' sh th identity of downtown as a regional center f employme t, sh pping, investment, activity and residence. (See - EDS, 4 ) . In m e specific terms : a. The City shall follow a strategy of a ba. anced growth i the downtown; maintaining its strongest sectors, reinforc ng t e growth of its emerging sectors and establi hing _ investor conf 'dence in its weakest sectors . �� ., � b. The City shall continue to expand presen _ _ ' efforts t de eloping a strong public support system in th downtown enha cing the desirability of the downtown as a s ' te for priv te i vestment and the identity of the downtown as a . regional cent r of activity. _ c. With recognition of the value of histori • preservation, the City ' s downtown redevelopment efforts sh 11 be . • directed into those geographic areas where the City has t maximum oppor unity to induce private development and where its investm nt wi 1 have -the greatest return. � d. The City shall continue to closely coor inate � its dow town evelopment efforts with the downtown commun' ty and the pri ate s ctor. (See EDS, 10 and Interim Report) . In ustrial and Large Commercial Development (See Page 97 ) THE OLLOWING IS ESSENTIALLY THE SAME AS EXISTZN � . � -/.�� - 16 - - CZ DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2, 1986 POLICY: ' 3 . I dustrial and Lar e Commercial Develo ment. The City sha 1 con inue to assist industrial and commercial expansio s und r more explicit guidelines that ensure the m st efficien use f scarce commercial and industrial land as w 11 as City inanc ' al resources . (See EDS, 2 ) . In mo e specific terms : . The City shall give first priority to th expansio nee s of established local firms; second priorit to the assi tanc of local entrepreneurs in establishing new irms, and thir pri rity to the attraction of out-of-area and out-of-s ate irms to the City. b. The City shall continue to pursue polici s designed to a d local firms experiencing difficulties in expandi g. '� c. The City shall establish a set of guidel 'nes with wh ' ch to evaluate all proposed development and expans ' on _ - - project requ 'ring some form of public assistance or appr al. d . The City shall increase the supply of 1 nd availab e for commercial and industrial expansion and develop ent ying special attention to- the need for parc ls of - more th n 10 acres in size. � - � "-- � e. The City shall pursue institutional pol cies " and cha ges esigned_to improve its role as a facilitator of commerc ' al a d industrial expansion and development. (Se EDS, - 12-13 ? � . • POLICIES RELATIb]G TO - A SA E, ATTRACTIVE RESIDENTIAL LIVING ENVIRONMEN _ Housing Supply (See Pages 98 - , 102 ) 1. Housin Su 1 . During the 1980 ' s, the Cit shall assist in t construction of 10 ,000 new housing units w thin the Ci y an in so doing: . a. Expand both ownership and rental oppor unities for Ci y re idents. . ��_ /�/J'.- - i� - - � CI Y DE ELOPMENT AND TRANSPORTATION COMMITTEE REPORT • ON THE POLICY RECOMMENDATIONS OF THE CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICE . September 2, 1986 . Increase the variety of housing opportun ' ties within n ighbo hoods. . Increase rental and owner opportunities for lower in ome h useholds. (See Hsg. Plan, .7 ) NO C NGE RECOMMENDED. ' Housing Affordability (See Pages 103 - 107 ? THE OLLOWING IS A REVISION OF EXISTING POLTCY: 2 . ousin Affordabilit . The City shall expand housing ppor unities in City neighborhoods for households of ' all inco e le els by: a. Retaining modest cost ownership opportun " ties by maint inin the existing supply as well as taking steps so - that new owne ship units are affordable to moderate income househol s. b. Retaining modest cost rental housing opportun ' ties by maintaining the existing supply as well a taking s eps o that new rental units are affordable to m erate income househ lds. c. Supporting continued expansion of a div sity - - of- hous ' ng op ortunities for middle and higher income hou eholds -� • " in thos area where displacement of lower income househo �ds is _ � not a p oblem d. Limiting financial or financing assista ce �in support of Iu ury housing unless there is a direct and _ demonst able enefit for low and moderate income housing. e. : Neasuring and reporting income in the � followi g man er. In all cases where income is computed s a percent ge of SMSA median income, the City shall retain i s use for pur oses f regional, state and federal programs. In additio , th City Council shall annually receive a repor . calcula ing e number of units assisted using St. Paul m dian ' income igur s. r � ' /�� - 18 - CIT DEV LOPMENT AND TRANSPORTATION COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CITIZENS OMMISSION ON BONDING AND FINANCING PRACTICES September 2, 1986 Lower Income Housing (See Pages 107 - 110 ) L wer Income Housin . In order to maintain an adequate uppl of housing affordable to lower income household , th City will take those steps necessary to: . Save and improve the existing supply of 1 w cost rental ho sing units . . Increase the supply of low cost rental un 'ts. � . Save and increase the supply of low inco homeowne ship r.its. . Increase the opportunities for low incom people t Iive in neighborboods throughout .the City. _ (See Lower Income H using Strategy) . __�_ .. ._ _-,r_ Housing Assistance (See Pages 107 - 110 ) 4 . ousin Assistance. The City shall take thos steps ne essa y in order to ensure: a. That additional housing assistance is ma e availabl to eet the needs of lower income households . _ - ,____ _ � b. That housing assistance available to the City _ is utili ed e fectively. - __ c. That housing assistance be utilized in o der to -leverage a maximum amount of affordable housing in the ity. . (Hou ing assistance in this context refers to direct �_ � � financi 1 sub idies provided for housing purposes by the tate and fed ral g vernments. ) (See Hsg. - Plan, 14 ) . � M intenance of Lower Income Housing Supply _ ( See Pages 107 -110 ) THE OLLOWING IS A NEW POLICY: 5. aintenance of the Su 1 of Lower Income Ho sin . The Cit wil strongly discourage the provision of public subsidy or a sistance to projects which diminish the supp y of _ housing unit affordable to lower income households unles concret , co temporaneous action can be identified which ill . . . ��, �3 �� - 19 - � C�I Y DEV LOPMENT AND TRANSPORTATIUN COMMITTEE REPORT N THE POLICY RECOMMENDATIONS OF THE CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICE September 2 , 1986 have the effec flf maintaining the supply of housing units affordab e to ower income households. Lower Income Housing Investment Fund (See Pages 107 - 110 ) THE OLLOWING IS A NEW POLICY: � 6. reation of a Lower Income Housin Fund. The City shall es abli h a Lower Income Housing Fund for the purpos of providin ded cated, on-going financial resources for the developm nt o new lower income housing units. This Fund hould be used or , ut not limited to, development of new lower ' ncome housing nits to replace those units which may be lost as result f the City' s Economic Development activities. The und should be financed through one or more f the followi g sou ces : a. The City and/or the State should captur interes inco e paid on various rental or real estate rel ted deposit , b. A surcharge should be added to recordin fees for rea est te transactions or other related taxes , and c. Payments should be made by developers o large , project whi h eliminate lower income housing units in th City. �� Neighborhood Quality � • ` (See Pages 110 - 112 ) � 7 . Neighborhood Quality. In order to assist i the mainte ance • nd preservation of the existing housing sto k, the City s all a hieve a conservation status for 80 per cent of the � City' s resid ntial blocks by 1990 and specifically: . a. Realize substantial improvement of 1,0 0 reside tial locks through public action and private reinve tment. - � b. Maintain and conserve 1, 680 residentia � • blocks c. Achieve enough rehabilitation to reduc substa dard units to no more than 15 per cent of the tot 1 housin sup ly. (See Hsg. Plan, 20 ) . NO CHANGE RECOMMENDED. �. . � � �� — Zo — - CI Y DE ELOPMENT AND TRANSPORTATION COMMITTEE REPORT ON THE POLICY RECOMMENDRTIONS OF THE CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICE September 2 , 1986 Neighborhood Maintenance (See Pages 110 -112 ) 8 . ei hborhood Maintenance. The City shall see to assist in the maintenance of the City' s existing housing s ock by: a. Improving the effectiveness of the City' code enforce ent s stem. b. Facilitating code compliance by providi g � financi 1 and technical assistance to homeowners . c. Ensuring adequate maintenance and upgra ing of public acil 'ties. . d. Ensuring adequate maintenance of proper y exterio s an yards . (See Hsg. Plan, 26 ) . ...._M- � .,.. . ...,� ._...•- . . NO HANGE RECOMMENDED. � � �� i� �.� CITY OF SAINT PAUL �..,o, / e"�� ': OFFICE OF TI3E MAYOR �, � � j � � �ii�iim � � . I•'�' 347 CITY HALL GLrORGE LATIMEE SAINT PAUL,MINNESOTA 55102 MAYOR ((312) 298-4323 POLICY RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICE June 3, 1986 SPECIAL SUMMARY REPORT Pr pared for Presentation at a Public Hearing Before the Saint Paul City Council M eting as a Committee of the Whole of the �, City Development Committee The Hon. William Wilson, Chair Prepared on Behalf of the Commission By SUSAN E. KIMBERLY Staff Consultant to the Commission Page 1 .a,.,�.�.s . � �� f� POLICY RECOMMENDATIONS of the CITIZENS OMMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 POLICY RECOMMENDATIONS GENERAL STATEMENTS OF POLICY TH CITY'S STRATEGY FOR ECONOMIC DEVELOPMENT (See ages 27 - 32 of the Commission' s Report) In or er to fulfill its goal and attain its object'ves, the City has a opted a "market responsive" Economic Develop ent strategy which incorporates a very wide range of activities and is consi tent ith the relatively broad terms used by the C ty to defin its ole in the Economic Development process. (S e the disc ssio of the City's role in the Economic Developme t process elow. ) Unde its present strategy, the City looks to the marketpl ce f most development proposals and financing pl ns. Market f rces and economic trends have more weight under th present trat gy than the redevelopment plans of the past. Typicall , ur an renewal programs began with a fairly detai ed plan for rede eiopment, proceeded with site clearance and assembly and hen attempted to find parties willing to impl ent the plan. Un er the present strategy, the City itself ofte initiate pro ects which are responsive to the marketplace, however, the lanning process is likely to be more particip tory than dir ctiv and the role of the City in the planning pro ess is somew at m re likely to be that of a mediator rather tha that of an ar itrator. In e onomic terms, this strategic shift is largely the result f a c nsidered decision by the City to alter the me hod of fina cing conomic Development activities. The City determi ed to maximize its use of revenue bond financing techniq es, n n-matching grants and other Indirect Investm ts while m'nimiz ng its use of general obligation bonds and D' ect Expendi ures. In addition to changing the manner of finan ing Economi Deve opment activities, the City also broadened i s scope o Econ mic Development activities and began the Page 2 . � �G -e.�i5" POLICY RECOMMENDATIONS of the CITI ENS MMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 utilizati n of a veritable cafeteria-full of alternative financial tech iques. Still, the City has greatly reduced i s dependenc upo Direct Expenditures borne by local taxpayers and placed a uch reater emphasis on Indirect Investments. COMMISSION' S RECOMMENDATION It is the opinion of the Commission that the City' s Economic Devel pment strategy works well and remains appropr 'ate to curre t cir umstances. To the extent possible, the City should r tain ts flexible, market responsive strategy as w 11 as the t ols i has used in the implementation of this strategy The City has a stake in maintaining the availabi ity of the f nanci 1 tools which it has used in the past and sh uld make tho e eff rts necessary to preserve a reasonable level of tax-exem t fin ncing and tax increment financing authority or Economic Devel pment purposes. Shoul these efforts fail, however, the City is st 11 in a pos tion o maintain a substantial Economic Developmen program. The ort Authority is positioned to carry-on its activiti s wi h a minimal level of technical adjustment eve under wo se-c se circumstances. The situation facing PED i more com lica ed, but resources available to the PED are su h that a c refu restructuring of them would likely allow the PED to maint in a substantial level of Economic Development financin act vity. Alth ugh the resources available to both agencies re considerable, it is important to understand that they must e used pr ' aril as secondary security in order to maximize t eir usefuln ss. iven the present magnitude of the City' s publ 'cly assiste Econ mic Development program, if the Port' s reser s or the PED's fun balances were used for direct loans or subsidies they wo ld be exhausted in a matter of weeks. NO C ANGE IS RECOMMENDED. To the extent possible, the current polic should be maintained. Page 3 � �� POLICY RECOMMENDATIONS of the CITI ENS MMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 2. HE C TY'S ROLE IN THE ECONOMIC DEVELOPMENT PROCESS (See Pages 32 - 35 ) OLICY STATEMENT AND RECOMMENDATIONS (The nderlined text below indicates recommended addition to t e City's existing policy statement. ) he City' s role in the Economic Development � process s to erve as a facilitator and guide rather than replacem nt fo private sector initiatives and that in work ng with the priva e sector, the City will be guided by the followin pri iples: l. That the City' s primary responsibility is to its citi ens nd that the impact on these citizens shall se ve as the p imar basis for judging all Economic Development activiti s, 2. That the City will minimize its own finan ial involve nt i private Economic Development acti'vities and ill utilize its o n limited financial resources in an efficient and prudent anne , • 3. That the Cit should make a s ecial effo t to serve t e nee s of its economicall disadvanta ed citizens, 4. That development in the City should emph size preserv tion, maintenance, rehabilitation and reuse of exi ting facilit es, a d rotection of the natural environment, 5. That development in the City should cont ibute to maxi um e rgy efficiency, and 6 . That develo ment in the Cit should cont ibute toward axim' zation of economic self-reliance. Page 4 . ��e��" POLICY RECOMMENDATIONS of the CITI ENS C MMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 3. THE CITY' S ECONOMIC DEVELOPMENT GOAL (See Pages 35 - 36 ) POLICY STATEMENT AND RECOMMENDATION (The nderlined text below reflects additional lang age recommend d by the Commission. ) Withi a context of fiscal integrity and financial� restrain , the City of St. Paul is committed to: . Maintaining a strong, diversified and expandin loca economy which will maximize economic opportun ties or all of its citizens, . Makin a s ecial effort to rovide econom' c and em 1 men o ortunities for its economicall disadvant ed citizens and 3. Providing the most attractive possible resident'al 1 ving environment for all of its citizens -- regardl ss of economic circumstances. 4. HE CITY'S ECONOMIC DEVELOPMENT OBJECTIVES (See Pages 36 - 37 ) POLICY STATEMENT AND RECOMMENDATION (The underlined language below represents additio al languag pro sed by the Commission. ) ISCAL INTEGRITY AND FINANCIAL RESTRAINT l. The City desires to preserve and improve its redit rating nd g neral financial condition. 2 . The City desires to minimize its direct finan ial partic'patio in Economic Development activities. 3. The City desires to increase its property ta base. Page 5 . ��-�3i�" POLICY RECOMMENDATIONS of the CITI ENS MMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 A STRONG, DIVERSIFIED LOCAL ECONOMY 4. T e City desires to maintain and expand job opportun'ties vailable to all of its residents. 5. T e Cit desires to make a s ecial effort to maximize "ob o ortunities for its economicall disadvanta d resident . 6. e City desires to retain and attract a wide variety f for profit businesses as well as non-profit organiza ions nd governmental agencies. 7. he City desires to assist appropriate busines es of all t pes o become established, to expand, to relocate r to locate w' thin the City. 8. he Cit desires to encoura e Economic Develo ent which m ximiz s ener efficienc and economic self-relian 9. he Cit will discoura e ro 'ects which will ne ativ 1 im act the environment or ne ativel im act his oric reserv tion. A SAF , ATTRACTIVE RESIDENTIAL LIVING ENVIRONMENT 10. The City desires to provide and preserve a w de variety of h using opportunities for persons of all econom c circums ance . 11. The City desires to maintain, preserve and i prove the cha acte , quality and diversity of its residential neighb rhood . 12. The Cit desires to make a s ecial effort t mainta 'n the su 1 of housin units available to its low r income resid nts. 13. The City recognizes the need for a safe enviro ment or its residents. Page 6 . 8�G-i3�� POLICY RECOMMENDATIONS of the CITI ENS OMMISSION ON BONDING AND FINANCING PRAC'TICES June 3, 1986 THE CITY S FUNDAMENTAL ECONOMIC DEVELOPMENT POLiCIES FI CAL INTEGRITY AND FINANCIAL RESTRAINT redit Rating and Financial Condition POLICY (See Page 38 ) � 1. C edit Rating. The City will seek to obtain a d maintain a " " rating in order to reduce long-term intere t expense n its obligations. (See CAP, Page 4 ) NO C NGE IS RECOMMENDED. POLICY (See Pages 38 - 39 ) 2. inancial Condition. The City will seek to maintain the iscal integrity of its operating, debt servic and capital impro ement budgets in order to provide essential services, mai tain public infrastructures and promote the expansi n of he private tax base. (See CAP, 4 ) . NO C ANGE IS RECOMMENDED. POLICY (See Pages 39 - 41) 3. verlapping General Obligation Debt. The Cit will reduce ts pe capita overlapping general obligation debt atio to a le el of $900 or less by 1985 and reduce its overlapp ng debt as a per entage of Estimated Market Value to six per ent or less duri the same time-frame. (See General Obligati n Debt Po icy) . NO HANGE IS RECOMMENDED. Page 7 . � �G-/3/� POLICY RECOMMENDATIONS of the CITI ENS C MMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 POLICY - (See Pages 42 - 47 ) . M'nimal Direct Financial Participation. The Ci y will mini ize 'ts own financial involvement in private Econo ic Developme t ac ivity and will utilize its limited fiscal resources effi iently and prudently within leverage and retu n on inves ent riteria established by the City. (See EDS, ,l) . NO C NGE RECOMMENDED. POLICY AND RECOMMENDATION (See Pages 47 - 50 ) (The nderlined language below is recommended as addition 1 lan uage to this policy statement. ) 5. F'nancial Leverage. Minimum leveraging is nor ally 1:6. (E ch do lar of public investment should leverage at east six doll rs of private investment. ) This ratio may be as 1 w as 1:3 if t e pr ject is: a. Directly associated with concentrated neighbor ood evitalization efforts. b. Creating permanent jobs within the City. c. Directly associated with conservation of non-ren able energy sources or development of energy effic'ent alterna ives. d. Directly related to the development of 1 and moderat inco e housing. e. If the ro 'ect includes ade uate s ace f r a license chil -care center located within the ro 'ect or i the develo r of he ro 'ect a s a one-time char e e ual to $ er s uare oot o leasable floor s ace for da care services r facilit es wh'ch will serve em lo ees of the ro 'ect. (Se CAP, 14 ) . MINORITY REPORT A s �en member minority of the Commission propose that paragra h "b. " of the above policy should read: b. Creating jobs for City residents. Page 8 i �G-/,3�� POLICY RECOMMENDATIONS of the CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICE June 3,1986 POLICY (See Pages 51 - 56 ) 6. eturn on Investment. The annual return in t e form of new p operty tax revenues shall be, at a minimum, 2 per cent of the C ty' s investment unless the project is direct associa ed wi h the enumerated exceptions to the leverage policy. (See CAP, 14 ) . OMMISSION' S RECOMMENDATION FOR CHANGE The eturn on Investment policy serves two purpose : l. It serves as minimum guidelines for membe s of the PED nd P rt staffs in evaluating and analyzing specifi developm nt a d redevelopment projects. For this ur ose, he olic i rea nable and should not be chan ed. . The policy also serves as a yardstick for use by other membe s of the City staff in analyzing and evaluat ng overall erfor ance of the City' s Economic Development prog am. For this purpo e the Commission recommends that the followi g measure e use and incorporated into City policy: Cover ge Ratio. Net investment measured in terms f the annu 1 cha ge in the Estimated Market Value should gene ate addition 1 pro erty tax revenues at current rates at least qual to the c rrent direct costs associated with the City' s Econ ic Developm nt pr gram. In making this computation, the tax 1 vies of the C'ty, t e School District and the County should be t en into acc nt. POLICY (See Page 56 ) . M"nimum Return. Projects associated with the enumerate exc ptions to the leverage policy are subject to he following mini al return policies : . I no case may the return in terms of tax reven es be less t an th cost of additional services required. (See CAP, 14 ) . In all cases, additional tax revenues generated from a pr ject hall be sufficient to repay the City's Page 9 �'��/.�/.5 POLICY RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICE June 3,1986 investme t ov r the course of the lifetime of the asset provided (S e CAP) . NO C NGE RECOMMENDED. Property Tax Base Increase POLICY � (See Pages 57 - 62 ) 8. T x Base Increase. The City shall seek to inc ease its tax ase a an annual real-dollar growth rate of at lea t two per ent o the City' s Estimated Market Value. (See ED , 4 ) . NO CH NGE RECOMMENDED. POLICY (See Pages 63 - 64 ) . N n-Residential Tax Base. The City shall make special e fort to increase its non-residential tax base in o der to minimi e th tax burden on City residents. (See EDS, 4 ) . FINDING O CHA GE RECOMMENDED. POLICY 10. ainte ance of Existing Tax Base. In order to main ain its exist'ng ta base the City shall discourage the use of acquisiti n as redevelopment tool (See CAP) . FINDINGS N CHA GE RECOMMENDED. Page 10 � ��-i3�s' POLICY RECOMMENDATIONS of the THE ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S June 3, 1986 POLICIES RELATING TO A STRONG, DIVERSIFIED LOCAL ECONOMY POLICY (See Pages 67 - 74 ) 1. J b Opportunities. The City shall seek to inc ease the numb r of 'ob opportunities available in the City and . attempt o mai tain a 25 per cent share of inetropolitan reg onal employme t. ( ee EDS, 4 ) . FINDING Durin a period characterized by economic instabil'ty and econ mic s ress, the City has been successful in mainta'ning its job ase i numerical terms, but its policy goal of maintain'ng a 5 per cent share of inetropolitan area employ nt is both nreal stic and unattainable. Data examined by the Commissi ind cates that the City' s share of inetropolitan a ea employmen is ecreasing and will likely continue to decreas for the f rese able future. C MMISSION' S RECOMMENDATION FOR CHANGE ased on its analysis, the Commission recommends th following lang age as a replacement for existing City policy . J Opportunities. The City shall seek to incr ase the numbe of j b opportunities available in the City. The ity will atte pt to achieve a goal whereby City Covered Employme t will equa or e ceed the level of employment projected for t e City of S . Pau by the Metropolitan Council of the Twin Cit es Area. MINORITY REPORT lthou h there was consensus on the Commission as t changinc� he qu ntitative measure appropriate to this policy, there was disag eement on the policy' s first sentence. A minority f the Commission preferred to change the first sentence f thi policy to read: l. Jo Opportunities. The City shall seek to incre se the number of j b opportunities for City residents. Page 11 . � ��/.�/.� POLICY RECOMMENDATIONS of the THE ITIZE S COMMISSION ON BONDING AND FINANCING PRACTI ES June 3, 1986 Issu s relating to the following three policies generate con iderable discussion among members of the Commissi n. POLICIES (See Pages 74 - 90 ) 2. ual Employment Opportunities. The City shal maintain its mmitment to Affirmative Action principles an take tho e st s necessary to assure that the City' s low-in ome and mino ity r sidents share in the City' s economic growth. (See EDS 14 ) . 3. J b Training and Job Placement Programs. The ity shall co tinue to expand its involvement with job training nd job seek ng pr grams and should more closely integrate thes activiti s wit the City' s Economic Development program. ( ee EDS, 14 ) . 4. S bsidy Allocation. Special consideration, includin proj ct subsidy allocations, should be given to projects that ill retain existing jobs or create new jobs within t e Cit . (See CAP, 16 ) . OMMISSION RECOMMENDATIONS FOR CHANGE AMENDMENTS TO EXISTING POLICIES POLICY . E al Employment Opportunities. The City shall maintain ts c itment to Affirmative Action principles and take thos ste necessary to assure that the City' s low-inc me and minor ty re idents share in the City' s economic growth. (See EDS, 14 ) . CO ISSION' S RECOMMENDATION FOR CHANGE he Co ission proposes that the following language be added to he ab ve policy: t is he goal of the City, through its Economic Developme t act vities, to achieve equal job opportunities f all of it resi ents. Toward this goal, the City will striv to achieve a ate f employment among women, racial minorities d Page 12 . � i'�� POLICY RECOMMENDATIONS of the THE C TIZE S COMMISSZON ON BONDING AND FINANCING PRACTIC S June 3, 1986 handicap ed p rsons that is equal to the rate of employment for that of 'ts p pulation as a whole. POLICY 4. bsidy Allocation. Special consideration, includin proj ct subsidy allocations, should be given to projects that ill retain existing jobs or create new jobs • within t e Cit . (See CAP, 16 ) . The C mmission proposes the following language as substitu e for the existing policy language: 4. S bsidy Allocation. Consideration, including project ubsid allocation, should be given to projects whi h will ret in ex sting jobs or create new jobs for City resid nts and spec'al co sideration should be given to those projects or programs which create job opportunities targeted for economic lly d sadvantaged residents of the City. ADDITIONAL PROPOSED POLICIES AFF RMATIVE ACTION, FIRST SOURCE EMPLOYMENT AND SET ASIDE REQUIREMENTS (See Pages 81 - 87 ) n Ma 29, 1986, the City Council adopted language essential y si ilar to the Commission' s minority report recommend tion on these requirements. CRE TION OF A JOB CREATION INVESTMENT FUND (See Pages 87 - 89 ) COMMISSION RECOMMENDATION he C ission proposes the following as an additio al policy re atin to job training and job placement activities and programs : he Ci y should establish a Job Creation Investment Fund for he pu pose of providing incentives for the creatio of employmen oppo tunities for economically disadvantaged citizens. n est blishing this Fund, it is important to Page 13 � �G�3/�s' POLICY RECOMMENDATIONS of the THE C TIZEN COMMISSION ON BONDING AND FINANCING PRACTIC S June 3, 1986 acknowle ge th experimental nature of this program and the City's n ed to develop a program and process that allows fo trial an erro with several specific initiatives in order o determin from among several alternatives the most effectiv program ossib e. " Durin its first two years of operation, the City should f nd th s program from appropriate sources at the le el of appro imate y $250,000 for each year. MINORITY REPORT A min rity of the Commission proposed the followin alternat've po icy: The C ty shall establish a Job Creation Investment und for the rpos of providing incentives for the creation of employme t opp rtunities for economically disadvantaged citizens. In rder to provide initial funding for this prog am, the City shoul consider the use of tax levy funds, general obligati bon proceeds, UDAG loan repayments, foundation grants, c rpor te contributions and any other appropriate s rce of funds. EXTENSION OF THE PORT AUTHORITY' S GEOGRAPHIC BOUNDARIES OF OPERATION (See Pages 89 - 90 ) COMMISSION RECOMMENDATION he C mmission proposes the following language for considera ion y City policymakers : n li ht of the fact that job opportunities are gro ing at a fast r ra e in suburban communities than they are withi the bound ries of the City and, in light of the fact that it is increasin ly d ' fficult to assemble large parcels of land appropria e fo major industrial development activities with n the City imit , consideration should be given to seeking legislati e ch nge which would allow the Port Authority to finance p ojec s located in adjoining suburban communities. roje ts undertaken outside of the City of St. Paul should be stru tured in such a fashion that maximizes the Ci y' s ability t pro ide jobs for its citizens. Page 14 - �� i3��_ POLICY RECOMMENDATIONS of the THE C TIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S June 3, 1986 ADDITIONAL POLICIES A STRONG, DIVERSIFIED LOCAL ECONOMY City olicies intended to encourage the retention r attracti n of ommercial and industrial development, rehabili ation or expansion are considered under three categori s: N ighborhood and Retail areas, the Downtown ar a and larg -scal commercial and industrial development. OMMISSION RECOMMENDATIONS FOR CHANGE NEIGHBORHOOD DEVELOPMENT POLICY (See Pages 90 - 94 ) The t xt below sets out the language proposed by t e Commissi n. T e underlined language represents additions t existing polic language: 5. N ighborhood Development. The City shall cont 'nue to relat its ommercial development efforts with neighborh od revitali ation efforts and shall continue to emphasize join public-p ivate revitalization programs which target City improvem nts, inancial and technical assistance to areas w ich offer th grea est potential for neighborhood revitalizatio . (See EDS 2 ) . In mo e specific terms: The City shall base its neighborhood commerci 1 dev lopment efforts on a recognition of the interdep ndenc between neighborhood commercial areas and t e adjacent resid ntial communities. Develo ment shall minimi adverse nviro mental and aesthetic im acts on ad 'acent ro erti s and rovide bufferin between residential and industri 1 lan uses, ade uate arkin and safe trans ortati n access. The City shall develop a clear understandi g of the r spect ve roles played by the neighborhood commercial areas, t e maj r retail centers and the downtown and should encourage the omplementary development of these sectors and strongly isco rage proposed developments in one sector whic would be in di ect competition with another sector. The City shall continue to target its aid or Page 15 . ^ �� -i3%� POLICY RECOMMENDATIONS of the THE CITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S June 3, 1986 neighbor ood ommercial revitalization to the most appropri te areas. d. The City shall continue to give priority o assistin the retention and expansion of existing small commerci 1 fi s within the City. e. The City shall continue to encourage new � commerci 1 de elopments in neighborhood commercial areas an should e tabl' sh specific assistance criteria in order to d cide which de elop nt efforts to assist. Develo ment shall be consistent with zoni ordinanc s, th •com rehensive lan, the housin lan, a li able redevelo ment lans and other similar ordinances, resolutio s, re ulati ns an lans of the Cit . (See EDS, 8-9 ) OMMISSION RECOMMENDATIONS FOR CHANGE DOWNTOWN DEVELOPMENT POLICY (See Pages 95 - 96 ) The text below sets out the language proposed by the Commissi n. T e underlined language represents additions t existing polic language: 6. D wntown Development. The City shall endeavor to reestabl' sh th identity of downtown as a regional center o employme t, sh pping, investment, activity and residence. (See EDS, 4 ) . In mo e specific terms : . The City shall follow a strategy of a bal nced growth i the owntown; maintaining its strongest sectors, reinforc 'ng th growth of its emerging sectors and establis ing investor confi ence in its weakest sectors. The City shall continue to expand present efforts a dev loping a strong public support system in the downtown nhan ing the desirability of the downtown as a sit for priva e in estment and the identity of the downtown as a regional ente of activity. With recognition of the value of historic reservat'on, he City' s downtown redevelopment efforts shal be Page 16 . P - /'/�" POLICY RECOMMENDATIONS of the THE C TIZEN COMMISSION ON BONDING AND FINANCING PRACTIC S June 3, 1986 directed into hose geographic areas where the City has the maximum pport nity to induce private development and where its investme t wil have the greatest return. . The City shall continue to closely coordi ate its down own d velopment efforts with the downtown communit and the priv te se tor. (See EDS, 10 and Interim Report) . I DUSTR AL AND LARGE COMMERCIAL DEVELOPMENT POLICY (See Page 97 ) 7. I dustrial and Large Commercial Development. The City sha 1 con inue to assist industrial and commercial expansio s und r more explicit guidelines that ensure the m st efficien use f scarce commercial and industrial land as w 11 as City inanc al resources. (See EDS, 2 ) . In mo e specific terms: The City shall give first priority to the expansio need •of established local firms; second priority o the assistance of local entrepreneurs in establishing new fi ms, and third prio ity to the attraction of out-of-area and out-of-s te f rms to the City. The City shall continue to pursue policies designed o ai . local firms experiencing difficulties in expanding. The City shall establish a set of guidelin s with whic to valuate all proposed development and expansio projects equi ing some form of public assistance or approva . The City shall increase the supply of land available for ommercial and industrial expansion and developme t pa ing special attention to the need for parcels of more than 10 a res in size. The City shall pursue institutional polici s and chang s de igned to improve its role as a facilitator of commercia and industrial expansion and development. (See E S, 12-13 ) O C NGE RECOMMENDED. Page 17 � �G i3�s'' POLICY RECOMMENDATIONS of the CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 POLICIES RELATING TO SAF , ATTRACTIVE RESIDENTIAL LIVING ENVIRONMENT POLICY (See Pages 98 - 102 ) l. ousing Supply. During the 1980 ' s, the City s all assist i the construction of 10,000 new housing units with n the City and 'n so doing: a. Expand both ownership and rental opportun ties for City resi ents. b. Increase the variety of housing opportuni ies within n ighb hoods. c. Increase rental and owner opportunities or lower in ome ouseholds. (See Hsg. Plan, 7 ) NO C NGE RECOMMENDED. HOUSING AFFORDABILITY POLICY (See Pages 103 - 107 ) OLICY AND RECOMMENDATION FOR CHANGE The mmission proposes the following as a revised policy o hous 'ng affordability. The underlined text below represen s add ' tional language to existing City policy: 2. using Affordability. The City shall expand housing pport nities in City neighborhoods for households f all inco e le ls by: . Retaining modest cost ownership opportuni ies by maint ining the existing supply as well as taking steps o that new owner hip units are affordable to moderate income househol s. . Retaining modest cost rental housing opportun ties y maintaining the existing supply as well as taking s eps s that new rental units are affordable to mod rate income h useho ds. . Supporting continued expansion of a diver ity of housi g opp rtunities for middle and higher income house olds in those areas where displacement of lower income household is not a pr blem. Page 18 � �!�r�3s�" . POLICY RECOMMENDATIONS of the CITIZENS OMMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 . Limitin financial or financin assistanc in su ort f lux r housin unless there is a direct and demonstr ble b nefit for low and moderate income housin . . Measuring and reporting income in the followin mann r. In all cases where income is com uted as a ercenta e of MSA median income, the Cit shall retain its use for ur ses o re ional, state and federal ro rams. In � addition the it Council shall annuall receive a re ort calculat n th number of units assisted usin St. Paul med'an income f ures. POLICY (See Pages 107 - 110 ) 3. wer Income Housing. In order to maintain an adequate suppl of housing affordable to lower income househol s, t City will take those steps necessary to: . Save and improve the existing supply of 1 w cost ren al h sing units. b. Increase the supply of low cost rental un ts. c. Save and increase the supply of low incom homeowne ship units. d. Increase the opportunities for low income people t liv in neighborhoods throughout the City. (See ower Income H usin Strategy) . 4 . ousing Assistance. The City shall take those steps ne essa y in order to ensure: a. That additional housing assistance is mad available to eet the needs of lower income households. b. That housing assistance available to the ity is util � zed e fectively. c. That housing assistance be utilized in o der to leve age a maximum amount of affordable housing in the ity. (Hou ing assistance in this context refers to dir ct financi 1 sub idies provided for housing purposes by the s ate and fed ral g vernments. ) (See Hsg. Plan, 14 ) . Page 19 , � �-�3%� POLICY RECOMMENDATIONS of the CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 OMMISSION' S RECOMMENDATIONS FOR CHANGE In 1'ght of the fact that the supply of additional publicly assi ted housing units has been virtually eliminat d, the Comm' ssio should consider the following additional pol'cy related o lo er income housing: MA NTENANCE OF LOWER INCOME HOUSING SUPPLY ' Main enance of the Supply of Lower Income Housing. The City will str ngly discourage the provision of public subsi y or assistan e to projects which diminish the supply of housing units af orda le to lower income households unless concrete, contempo aneo s action can be identified which will have th effect mai taining the supply of housing units affordabl to lower in ome ouseholds. LOWER INCOME HOUSING FUND In a dition to its policy addressing the supply of lower i come ousing units, the Commission proposes the cr tion of a Lo er In ome Housing Fund: The ity should establish a Lower Income Housing nd for the purpo e of providing dedicated, on-going financial resoure s for the development of new lower income housing units. This und should be used for, but not limited to, develop ent o new lower income housing units to replace t ose units w ich m y be lost as a result of the City' s Economic Develop ent a tivities. The und should be financed through one or more o the followi g sou ces : 1. The City and/or the State should capture interes inco e paid on various rental or real estate rela ed deposit , 2. A surcharge should be added to recording fees for rea esta e transactions or other related taxes, and 3. Payments should be made by developers of large project whic eliminate lower income housing units in the City. Page 20 . .. �� _��.�. POLICY RECOMMENDATIONS of the CIT ZENS OMMISSION ON BONDING AND FINANCING PRACTICES June 3, 1986 POLICY (See Pages 110 - 112 ) 5. N ighborhood Quality. In order to assist in t e maintena ce an preservation of the existing housing stock, the City sha 1 ach eve a conservation status for 80 per cent of the City's r siden ial blocks by 1990 and specifically: . Realize substantial improvement of 1,000 resident al bl cks through public action and private reinvest ent. . Maintain and conserve 1,680 residential blocks. . Achieve enough rehabilitation to reduce substand rd un ' ts to no more than 15 per cent of the total housing upply. (See Hsg. Plan, 20 ) . COMMISSION' S RECOMMENDATION The s ecific goals contained within the City' s neighbor ood ality policies are very specific in quantita ive terms. f a ans of monitoring progress toward these goal has not been esta lished, creation of an appropriate process sh uld be consi ered. POLICY 6 . eighborhood Maintenance. The City shall seek to assist i the maintenance of the City's existing housing st ck by: a. Improving the effectiveness of the City' s code enforcem nt s stem. b. Facilitating code compliance by providing financia and technical assistance to homeowners. c. Ensuring adequate maintenance and upgradi g of public f cili ies. d. Ensuring adequate maintenance of propert exteriors and yards. (See Hsg. Plan, 26 ) . NO C NGE RECOMMENDED. Page 21 � "/�/�„l� , il . . � _ , : . �� - �I�_ C� _ _ _ ��. � ' 1�e� . : , K ' _ �p�� ,�� , ( �� ; � a� � , f e-�.v 1aEAd�, �� 1,�►� �� _ � � , �� _ .� �j CA��t.1,.'�M�S �1r/. �►� �l�l�►_ +'1�11r/�hl� l� �t �fi ' _ _ .; , _ _ � , ;��z�� ►1►�T; /� _ - �zt�� $ _ � � __. ,: s�r �r ��r _ � — ��'�/Z�t �� _ __ �� _ . :l _ , , �� - �iR� ,�4�v�o�iT - .: �. _ _ ;, , , _ .. ; �, � � � � � —i� ,�� /�� ; ��s,�� _ - __ .. _ _ _ _ __ _ : � _ _ _ _ :: . ��c �� _ � �u �� _<<5 _ �°�� _ � � , G� � / �,vovl�' l%�e �e ,�e_ Q,�l� _. : � , ' P�� ; , `�°e �. �� _ � � ; . _ _ _ ,. . ; i . __ _ _ __ _ — a J ��/�- St. Paul League of Women ,� Voters . 1010 University Avenue June 3, 19 6 St.Paul,MN 5510a (6I2)644-9176 Memo andum T0; The St Paul City Council • FROM. St. aul League of Women Voters Port Authority Study Co�it ee; Sara Pillow, Chair; r�ryiyn Ueueen, President LWVSP RE: iridi and Reco�endations of the Citizeas Commission on Bo ing nd Fi ncing Practices . This evening we are addressing the diseuss on on St. Paul' Findings and Recommendations of the Citizens Commissi n on Bondi and inancing Practices. e Lea e of Women Voters promotes an open, accountable, respo ive gover ntal ystem; protectiaa of the citizen's right to know; acti n to provid econ c justice; eq�al access to �plca�ment and housing; an action to pr ote the economic health of cities and to improve the q ality of urb n life The St. Paul League of Womea Voters also supports ci planni and fective coordivation with all agencies involved and pr grams to prov de pub ic and publicly-aseisted housiag and to redevelop, rehabil tate a d conserve urban areas. Af er car ful consideration of the Findings and Reco�endations the Citi ens ssion on Bondiug and Financing Practices, we call to your att ntion his report which coordinates various previously adopte City pol cies, nalqzes their impact on the city, aad reco�ends chang s in or ad itions to pertinent policies. � The t. Pa League of Women Voters eupports the additions in the Findi s nd Re ndations as follows: Econamic evelo ent 1. To e a special effort to serve the needs of the econamically di dvan ged, to protect the natural euviroffient, to progress a far as po ible toward economic aelf-reliance. (page 35) 2. To ke a pecial effort to provide econamic and emploqment • ^ opp rtunit es to economica3.ly disadvantaged citizens to provide �� -��.._._ LWVS Memor ndum Page lfao ob op ortunities, to increase energy efficiency and economic elf-r liance, to discourage projects which have a negative ' act n the envirornnent or historic preservation, to maintain the upply f housing units available to lower income residents, a d o reco nize the need for a safe environment. (page 36 & 37) 3. o lowe the financial leverage ratfo to 1:3 if the project in ludes rovisi n for day care or creates job opportunities for the ec nomically ' isadva taged. (page 50) , A Str n Div rsified Local Econom 1. To in egrate economic developmeat with equal employment, eqn 1 oppor nity and ,job training and job placement activities, t e City 11 require that developers and/or firms receiving pub ic fi�an ial assistance shall agree to *Demo strate compliance with a carefully considered affirmat e acti policy, *Exec e a binding first source employme�t agreement, and *Compl with set-aside requirements for minority, women and small business enterprises. (page 82) ' 2. To est blish a Job Creation Investment Fund. (pages 87-89) 3. To 1 t adverse enviro�ental and sesthetic impacts from neighb rhood commercial developments on ad�acent properties a d to pro 'ide buffering between residential and industrial land ses, adequa e parking, and safe transportation access. (page�94) 4. To pe t development only when it is consistent with zo�ng , rdina es, the comprehensive p1an, the housing plan, apglica le edeve opa�ent plans, and other si�ilar ordinances, resolution , egula ions, and plans of the City. (page 95) .t �� - ,,.� f-- ��: LWVS Memor ndum Page Three A Sa e, Att active Residential Livin Enviranment 1. To 1 ' it financial assistance in support of luxury housing nless ther is a direct and demonstrable benefit for low and mode ate inco e housing. (page 106) 2. To s andardize the method of reportit�g iacome and to provid an annu 1 report of housing units assisted. (pages 106 & 107) 3. To d scourage public subsidy or assistance to projects whic dimi sh the supply of housing units affordable to lower inc e house olds unless simultaneous action will replenish that ply. (page 110) 4. To es ablish a Lower Income Housing Fund dedicated to fundin new lower income housing units. (page 110) In the Ci y's Economic Development Strategy, page 12, adopted 10 16/80: "St. aul sh 11 develop a set of guidelines with which to evaluate 1 propo ed dev lopment and expansion pro�ects requiring some form of ublic assis nce o approval." The St. Paul League of Women Voters urg e impl ntati n of these guidelines as a first step toward effective �nito ing. We are concerned that there is a lack of coordination n planni g amo all agencies involved. This absen�e of planning coo ination among ublic gencies regarding their proposals will continue unles data monito ing is effectively instituted. The St. P 1 League of Women Voters urges the Citq of St. Paul to establ sh a b sic olic mandating that financial assistance require affi tive a tion implementation. � The St. Pa l League of Women Voters would hope to participate ia ny discus ion ab ut seeking legislative change to allow the Port Author ty to fi nce pr jects located in ad3oining suburban communities. The nguage on pag 89 wa adopted bq a small ma�oriLy of the Commission. The la guage on pag 6, �6 was not adopted by the Com�nission. We c nd the -forethought of the Mapor and members of the City uncil in eata lishi the Co�issioa, and we commend the w�ork of the Con�i ion. 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'F i x � �'� z„� �,.,,�.'� sb � �•� .�% ~� �. "y '�.r ��^,'�+�� x��x �� ' � �" �.�'r- ; �` ?qq� �` � a:. ., � � ,�g �.._ 'p � a :°� �� s �' r. r .�s_ rt ``�" ht,�..r ..a :� _ -.��.£�`y�'�^wt �:� r �� :�st`�J'�. �`�'`-� -h �e�i. �( � t � . ; }.� � � .;xf�-:.� � i � ��. �^ : '�''� 'v� . .Y .#'a � it 2 9 . �� :!X.� y;, , at�..4R�' �`� .��+ �'.e C'� . i 0,. ea+e.� ,Y `5..y: '� 4 �-„� 'eC� T��.,�0� s� ,,� , .;i��k, � '�., '�, y�:� b "'v ta° ��. . ��_ ,��s— � � � � � � � THE FINDINGS AND RECOMMENDATIONS � of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 � � - � � � epared on Behalf of the Commission By � SUSAN E. KIMBERLY Staff Consultant to the Commission � ,� � � � � � ��,t,o� CITY OF SAINT PAUL :� '. OFFICE OF THE MAYOR + tuum . ; n�� w � • �•" 347 CITY AAT•T• dEOBOE LATIMEB SAIDTT PAUL,MINNE30TA 6�108 � MAYO$ �61fd) E98-4323 , THE CITIZ NS COMMISSION ON BONDING AND FINANCING PRACTI ES � January 22, 1986 LETTER OF TRANSMITTAL � The Ho . Geo ge Latimer Mayor . � 347 Ci y Hal and Courthouse St. Pa 1, Mi nesota 55102 � The Ho . Vic or Tedesco \ Presid nt of the City Council � 719 Ci y Hal and Courthouse St. Pa 1, Mi nesota 55102 � Dear M yor L timer, Mr. President Tedesco an Memb rs of the City Council: � Pur uant to the requirements of Council File 84-1 31, the Ci y Cou cil Resolution creating the Commission, I am please to t ansmit to you today the Findings and Recomm ndati ns of the Citizens Commission on Bonding and � Financ ng Pr ctices. _ As equired by the Resolution, the Commission has ' comple ed an intensive nine-month review and evaluation of the City' s Econo ic Development activities during the past 20 years. As d'rected by the Resolution, the Commission has lso offere a nu ber of policy level recommendations for your � consid ratio as you undertake Economic Development activi ies in the futur . � Bas d on this review and evaluation, I am pleased to tell y u th the Commission' s report contains a great dea of good n ws. he City did not "give away the store, " nor di it "mortg ge t future. " Rather, the City has dramatically � increa ed t magnitude of its Economic Development progra at � Page 1 � � � LETTER OF TRANSMITTAL � THE CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � the same time it has significantly reduced the level of risk � assumed by City taxpayers for Economic Development activities. In summary terms, the Commission finds that the City � has: -- Developed and followed a thoughtful and comprehensive Economic Development policy framework that has �' addressed the major goals and objectives of the City' s Economic Development program. -- Succeeded in attaining most of the specific � performance goals set out in its Economic Development policy framework. -- Utilized available Economic Development tools wisely � and prudently. - -- Accumulated an impressive level of Economic � Development resources which will enable the City to maintain its Economic Development program even if many of the Economic � Development tools it has used in the past are restricted or eliminated in the future. -- Minimized its own financial participation in the � Economic Development process and reduced the level of City debt associated with Economic Development activities. , In January of 1978, concerned with a rapidly rising � ' level of general obligation debt, the City adopted a plan and program for reducing the City' s overlapping indebtedness. This policy initiative was to have a far reaching impact on the � City' s Economic Development program. Until that time, general obligation debt had served as the foundation for the City' s Economic Development program. Under its new policy, the City � had to look elsewhere for Economic Development funding. In order to implement its debt reduction program in terms of Economic Development, the City determined to maximize � its use of revenue bond financing, non-matching grants and other forms of Indirect Investment while minimizing its use of general obligation bond proceeds and other Direct Expenditures. In � addition to changing the manner of financing Economic Development activities, the City broadened the scope of its Economic Development program and began the utilization of a , veritable cafeteria-full of alternative financial techniques. � Page 2 � � � �� -��?/.�` � LETTER OF TRANSMITTAL THE ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � January 22, 1986 � As a esult, the City's Economic Development progr grew fro a $ 9 million effort in 1977 to a $499 million pro ram in 1984. At e same time, general obligation debt associat d , with Eco omic evelopment activities declined from $63 milli n to $55 m' llio . � This ew approach toward Economic DeveloQment has generate 'imp tant benefits for City residents and taxpayer . -- T City has made remarkable progress in increas'ng � its tax ase. Measured in real-dollar terms which adjust fo the effe t of inflation, the City has reversed a 15 year per 'od of tax b se e osion and achieved an historically unprecedent d level of tax se growth. _ � -- T is enhanced tax base has made possible lower t x rates as meas ed by a percentage of Estimated Market Value s � well as ener lly declining real-dollar property tax levies or City gov rnme t operations. � -- T e City has improved its credit rating thus reducing futu e interest expenditures. -- D ing a period of substantial economic instabil'ty � and stre s, t e City has been successful in maintaining the overall evel of employment in the City while significantly enhancin its potential for additional job creation in the � future. -- T e City has been successful in providing a vari ty of housi g op ortunities affordable to a broad range of inco e � levels a d ma'ntained an aggressive and successful program o neighbor ood aintenance and revitalization. � Give the success of its Economic Development progr m, it is th con ensus of the Commission that the City can make a good pro ram ven better by giving a higher priority in the future t the needs of the City' s economically disadvantaged � resident . T ard this end, the Commission proposes several ways the City can target the benefits of Economic Developmen to those mo t in need of assistance. While there is significan � disagree ent mong Commission members as to how to implement this goa , th re is no disagreement among Commission members as to the g nera direction the City should take in this regard � I be ieve you will find the specific proposals of t e Commissi n to be both creative and thoughtful and I trust th y will be iven the the consideration that I believe they dese ve. � Page 3 � � LETTER OF TRANSMITTAL � THE CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � As the Commission approached its completion deadline, � members ot the Commission became increasingly sensitive to the fact that implementation of its recommendations would likely require additional monitoring and compliance resources and , procedures. As requested by the Commission, I will be sending you some specific thoughts on this subject under separate cover. Before closing, I would like to personally acknowledge � and thank each of the members of the Commission who gave generously of their time, talents and expertise in developing this report. The members of the Commission included: � Mr. John Mullen, Commission Chair Mr. Bruce Riernat, Vice Chair Ms. Rathryn Ackland � Ms. Victoria Davis Mr. Dennis Dorgan The Hon. John Drew Mr. Julian Empson - Ms. Polly Flynn Mr. William Peterson � Ms. Sara Pillow Mr. Warren Preeshl Mr. Victor Reim The Hon. ICiki Sonnen Mr. Delos V. Steenson Mr. George Winter � In addition, I would like to thank Mr . James Bellus and the staff of the Department of Planning and Economic Development; Mr. Eugene Kraut and the staff of the Port � Authority; Mr. John Taft, Ms. Shannon Johnson, Ms. Jean Malaske, Ms. Laverna Marson and the staff of the Mayor ' s Office; Mr. Greg Blees and the staff of the Budget Office, and Mr. David Thune of � the City Council's Research staff for their on-going support, - assistance and cooperation throughout the Commission' s deliberations. � I look forward to discussing the Commission's report with each of you in the very near future. Sincerely yours, � �' ,� 1 Susan E. Kimberly � Staff Consultant � � Page 4 � � ��-'.�'� � THE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � � � EXECUTIVE SUMMARY MMISSION' S FINDINGS AND RECOMMENDATIONS � � In e judgement of the Commission, the City has develop d an followed a comprehensive policy framework tha address s th major goals, policies and objectives of the C'ty's � Economi Dev lopment program. Furthermore, the City has be n general y su cessful in attaining the specific performance oals set out in i s policy framework. - � In ore specific terms: � 1. In the opinion of the Commission, the City has used the fin ncia tools available to it wisely and prudently. Moreove , th Commission finds that the City has accumulate a signifi ant evel of financial resources which will enable he City to main ain its Economic Development program even if m ny of the ools it has employed in the past are eliminated or restric ed b state or federal action. � 2. The City has been successful in defining its r le in ter of erving as a facilitator and guide to the priva e sector. The City' s Economic Development program is � charact rize by a wide variety of public-private partnersh'ps which ve e abled the City and the private sector to devel p a broad r nge f Economic Development programs and projects. �� 3. The City has been successful in minimizing its own financi 1 pa ticipation in the Economic Development process and it has een uccessful in reducing and minimizing the level of � risk assumed by its citizens for the conduct of the City' s Economic Dev lopment program. � 4. The City has improved its credit rating and r uced the le el of general obligation debt associated with Econo 'c Develo ent ctivities. � � Page 5 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . � EXECUTIVE SUMMARY � 5. The City has made remarkable progress in increasing � its property tax base. 6. During a period of substantial economic instability and stress, the City has been successful in maintaining the � level of employment in the City while significantly enhancing its potential for job creation in the future. Given this promising potential, the Commission recominends that t�ie City � increase its emphasis on job training and job placement programs as well as consider other initiatives having the potential of providing increased job opportunities for the City's economically disadvantaged citizens. � Specifically, the Commission recommends: a. That special consideration be given in terms � of subsidy allocation to projects creating job opportunities targeted for economically disadvantaged City residents. b. That, under certain specified conditions, some � publicly assisted Economic Development projects should be required to demonstrate compliance with an affirmative action � plan, enter into a first source employment agreement and comply with set-aside requirements for minority, women and small business enterprises. � c. That the City should create a Job Creation Investment Fund for the purpose of providing incentives for the creation of job opportunities for economically disadvantaged � City residents. d. That the geographic boundaries of the Port � Authority should be expanded to allow the Port to undertake projects in adjoining suburban communities provided that such projects are structured in a fashion which maximizes job opportunities for economically disadvantaged City residents. � 7. The City has assisted a wide variety of businesses in a wide variety of ways. The City has been generally � successful in retaining existing businesses, attracting businesses from other locations and assisting new business to become established in the City. Page 6 � � ,� -- 1.,��!.�'� � � THE FINDINGS AND RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � • EXECUTIVE SUMMARY � � 8. he City has established an ambitious goal for housing rodu tion during the 1980 's and is essentially on t ack toward a tain'ng that goal. � 9. e City has been successful in providing a var 'ety of housi g op ortunities affordable to a broad range of inco e levels. Only during recent years has the City' s ability to � provide ower income housing opportunities been stifled by policy c ange at the federal level. For his reason, the Commission recommends: � a. That the City make a special effort to maintain its xisting supply of housing affordable to lower � income h useh lds, and b. That the City consider the establishment o a Housing rust Fund as a means of providing additional resour es � for prov'ding dditional lower income housing opportunities. 0. e City has maintained an aggressive and � successf 1 pr ram of neighborhood maintenance and revitali atio . � � � � � � . � � Page 7 �' � THE FINDINGS AND RECOMMENDATION � S of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . � � � � � � � (This Page Left Blank Intentionally) � � . � � � � � � Page 8 � � � �� _ ,��.��- � THE FINDINGS AND RECOMMENDATIONS of the � CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � . � � THE FINAL REPORT OF THE COMMISSION �" � � ' � � � �' P epared on Behalf of the Commission By � SUSAN E. KIMBERLY Staff Consultant to the Commission � � � Page 9 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . � � � � � � (This Page Left Blank Intentionally ' ` � � � �� Page 10 � � � . �' - i.-%, � THE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � . . COMMISSION MEMBERSHIP � Purs ant to the City Council Resolution creating t e � Commiss on, m mbers were appointed to represent specific organiz tions professional affiliations or the communi y-at- arge. The following list indicates the names of the mem ers o the Commission as well as their respective � represe tatio al roles as specified by the Resolution. � MR. JOHN MULLEN, COMMISSION CHAIR Representing Banking Professionals � MR. BRUCE KIERNAT, VICE-CHAIR epres nting the St. Paul Area Chamber of Commerce � MS. VICTORIA DAVIS R presenting Building Owners and Managers � MS. POLLY FLYNN . Representing �the Legal Profession MR. WILLIAM PETERSON � Representing Organized Labor MS. SARA PILLOW � Repre enting the St. Paul League of Women Voters MR. WARREN PREESHL and MR. DELOS V. STEENSON Repr senting Investment Banking Professionals � THE HON. JOHN DREW and THE HON. KIKI SONNEN epresenting the St. Paul City Council 1 . VICTOR REIM and MR. GEORGE WINTER R presenting the St. Paul Port Authority � MS. RA HRYN ACKLAND, MR. DENNIS DORGAN and MR. JULIAN EMPS N Representing the Community-at-Large � � Page 11 � � ' THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 _ � � � r - _ � � (This Page Left Blank Intentionally. ) � � � �� , Page 12 � � � ��- ��,�5�� THE FINDINGS AND RECOMMENDATIONS of the CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICES , January 22, 1986 � - TABLE OF CONTENTS � � SECTION I , INTRODUCTION Title Page ------- ----- --------------------------------------------- ---- � Introdu tion. . . . . . . . . . . . . . . : : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Summary Findi gs. . . . . . . . . . . . . . . . . . . . . . 19 Certain Defin d Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Scope o Comm ssion's Study. . . . . . . . . . . . . . . . . . . . . . . . . . � . . . . . 23 i I SECTION I GENERAL STATEMENTS OF POLICY � Title ____________ Page ------- ----- --------------------------------- ---- The Cit 's St ategy for Economic Development. . . . . . . . . . . . . . . . 27 � Co issio ' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 The Cit 's Ro e in the Economic Development Process. . . . . . . . . 32 Co issio ' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 The Cit ' s Ec nomic Development Goal. . . . . . . . . . . . . . . . . . . . . . . . 35 � Co issio 's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 The Cit 's Ec nomic Development Objectives. . . . . . . . . . . . . . . . . . 36 Co issi 's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 '� SECTION III � HE CI Y'S FUNDAMENTAL ECONOMIC DEVELOPMENT POLICIES � Title --------------------- Page i ------- ---- -----------------------. . . . . . . . . ---- Credit atin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Co issi � ' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 � Financi 1 Co ition. . . . . . . . . . . . . . : : : : : : : : : : : : : : : : : : : : : : : : : : 38 Co issi n's Recommendation. . 39 Overlap ing eneral Obligation Debt. . . . . . . . . . . . . . . . . . . . . . . . 39 ' Co issi n' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Minimal Dire t Financial Participation. . . . . . . . . . . . . . . . . . . . . . 42 Co issi n' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Financi 1 Le erage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 �; Co issi n' s Recommendation: : : : : : : : : : : : : : : : : : : : : : : : : : : : 49 Min rity Report. . 50 Return n In estment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Co issi n' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 � Pro osed Coverage Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Page 13 � ' � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 TABLE OF CONTENTS (CONTINUED) � SECTION III THE CITY'S FUNDAMENTAL ECONOMIC DEVELOPMENT POLICIES � (Continued) Title Page ---------------------------------------------------------------- Minimum Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 � Commission's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Tax Base Increase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Commission's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Non-Residential Tax Base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 � Commission's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Maintenance of Existing Tax Base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Commission' s Recommendation. . . . . . . . . . . . . . . . . . . . � 67 � Job Opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Commission' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 _ Minority Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Equal Employment Opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 � Job Training and Job Placement Programs. . . . . . . . . . . . . . . . . . . . . . 75 Subsidy Allocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 . . Commission' s Recommendations � Equal Employment Opportunities. . . . . . . . . . . . . . . . . . . . . . 79 Subsidy Allocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Affirmative Action, First Source Employment and Set-aside Requirements. . . . . . . . . . . . . . . . . . . . . . . . . 81 � Minority Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Creation of a Job Creation Investment Fund. . . . . . . . . . 87 Minority Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 � Extension of the Port Authority's Geographic Boundaries of Operation. . . . . . . . . . . . . 88 Neighborhood Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 � Commission's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Downtown Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Commission' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 � Industrial and Large Commercial Development. . . . . . . . . . . . . . . . . . 97 Commission' s Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Housing Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Commission's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102 � Housing Affordability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 � Commission's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106 Lower Income Housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 � Commission's Recommendations Maintenance of Existing Supply. . . . . . . . . . . . . . . . . . . . . .110 Creation of Housing Trust Fund. . . . . . . . . . . . . . . . . . . . . .110 Neighborhood Quality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110 � Page 14 � � �'�q -/�/�� THE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � TABLE OF CONTENTS (CONTINUED) SECTION III � T E CI Y'S FUNDAMENTAL ECONOMIC DEVELOPMENT POLICIES (Continued) Title Page ------- ----- --------------------------------------------- ---- � Neighbo hood aintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Co issio 's Recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . .112 � APPENDIXES Appendi A - he Tracked Economic Development Program. . . . . . . A-1 � Appendix B _ inancing Inventories. . . . . . : : : : : : : : . . . . :-: : : : : : B-1 Appendix C dditional Technical Data. . . . . . . C-1 Appendix D - ummary Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1 _ � INDEX OF GRAPHS � Number Title . age -------- ----- --------------------------------------------- --- � O1 The C'ty' s Economic .Development Program. . . . . . . . . : : : 18 02 Econo ic Development Fund Sources. . . . . . . . . . . . . . . 26 03 Port uthority Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 04 HRA/P D Fund Balances. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 � 05 Direc Expenditures Adjusted for Inflation. . . . . . . . . 34 06 Gener 1 Obligation Bonds Issued for conomic Development Purposes. . . . . . . . . . . . . . . . . . 40 � 07 Gener 1 Obligation Bonds Outstanding for conomic Development Purposes. . . . . . . . . . . . . . . . . . 41 08 Direc Expenditures Expressed as a ercentage of Total Program. . . . . . . . . . . . . . . . . . . 42 � 09 Gener 1 Obligation Debt Service as a . ercentage of Total Program. . . . . . . . . . . . . . . . . . . 43 10 ever ge Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 � 11 eal- ollar City Tax Levy. . . . . . . . . . . . . . . . . . . . . . . . . 51 12 ity ax Levy as a Percentage of� stimated Market Value. . . . . . . . . . . . . . . . . . . . . . . . 53 13 over ge Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 � 14 stim ted Market Value Equivalents. . . . . . . . . . . . . . . . . . 57 15 eal- llar Estimated Market Value Equivalents. . . . . . 58 16 eal- llar Net Investment. . . . . . . . . . . . . . . . . . . . . . . . . . 63 � 17 roper ies by Classification. . . . . . . . . . . . . . . . . . . . . . . 65 � Page 15 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 INDEX OF GRAPHS � (CONTINUED) Number Title Page -----------------------------------------------------------. . 68 � 18 Average Annual Employment, Metrogolitan Region. . . . 19 Average Annual Covered Employment. . . . . . . . . . . . . . . . . . . 70 20 City Covered Employment as a Percentage � of Metropolitan Area Employment. . . . . . . . . . . . . . . . 72 21 Jobs by Classification, Metropolitan Region. . . . . . . . . 74 22 Jobs by Classification, City of St. Paul. . . . . . . . . . . . 76 � 23 Unemployment Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 24 Number of Employed Persons. . . . . . . . . . . . . . . . . . . . . . . . . . 80 25 Average Number of_ Unemployed Persons. . . . . . . . . . . . . . . . 83 26 Unemployment Rates by Racial Groups. . . . . . . . .-. . . . . . . . 85 � 27 Per Cent of Persons Not in the Labor Force. . . . . . . . . . 86 28 Median Real Family Income. . . . . . . . . . . . . . . . . . . . . . . . . . 88 . 29 Employment Trends, Suburban Communities. . . . . . . . . . . . . 90 30 Captured Tax Increment, � Downtown Development District. . . . . . . . . . . . . . . . . 96 31 Age of Housing by Year Built. . . . . . . . . . . . . . . . . . . . . . 98 32 City Vacancy Rates, Multi-Family Housing. . . . . . . . . . . . 99 � 33 Annual Net Housing Production. . . . . . . . . . . . . . . . . . . . .102 34 Net Housing Production by Housing Types. . . . . . . . . . . . .103 35 Mortgage Interest Rates. . . . . . . . . . . . . : . . . . . . . . . . . . . . .104 � 36 Average Monthly Mortgage Payment. . . . . . . . . . . . . . . . . . . .105 37 New Low Income Housing Units Available. . . . . . . . . . . . . .108 INDEX OF TABLES � Number Title ______________________Page � -------------------------------------- O1 The City's Economic Development Program. o . . . . . . . . . . . 24 02 Direct Expenditures and Indirect Investments. . . . . . . . 25 � 03 General Obligation Debt Outstanding Economic Development Agencies. . . . . . . . . . . . . . . . . . 44 04 Sources of Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 05 Sources of Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 I� 06 Leverage Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 07 City Tax Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 08 Return on Investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 � 09 Coverage Ratio. . . . . . . . . . . . . . . . . e . . . . . . . . . . . . . . . . . . . . 54 10 Average Rates of Change Adjusted Estimated Market Value. . . . . . . . . . . . . . . . 59 11 Rate of Growth Most Recent Five Years. . . . . . . . . . . . . . . 60 � Page 16 � � �� /�-s.- � � THE FINDINGS AND RECOMMENDATIONS of the � CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � INDEX OF TABLES (CONTINUED) � Number_ Titl --------------- age 12 Pres nt Value and Real Dollar Value Estimated Market Value Equivalents. . . . . . . . . . . . . 61 � 13 Real Dollar Net Investment. . . : : : : : : . . . : : . . . . : . . . . . 62 14 Prop rty By Classification. . . . . . . . . . . . . . . 64 15 Net cquisition Costs, HRA/PED. . . . . . . . . . . . . . . . . . . 66 16 Aver ge Employment, City of St. Paul. . . . . . . . . . . . . . . . 69 � 17 City Employment as a Percentage of Metropolitan Area Employment. . . . . . . . . . . . . . . 71 18 Empl yment Estimates, Metropolitan Council. . . . . . . . . 71 � 19 City Covered Employment as a Percentage of Metropolitan Area Employment. . . . . . . . . . . . . . 73 20 Comm rcial and Industrial Development. . . . . . . . . . . . . . 92 _ � 21 Dist ibution of Commercial and Industrial Development by Planning Districts. . . . . . . . . . . . 93 22 Hous 'ng Units by Year Built. . . . . . . . . . . . . . . . . . . . . . . .100 23 Annu 1 Net Housing Production. . . . . . . . . . . . . . . . . . . . . .101 � 24 Hous 'ng Revenue Bond Issues. . . . . . . . . . . . . . . . . . . . . . : .101 25 New ow Income Housing Units Available. . . . . . . . . . . .109 � . . � � � � � � Page 17 � � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 - � COMMISSION'S FINDINGS AND RECOMMENDATIONS � � � GRAPH O1 THE CITY' S ECONOMIC DEVELOPMENT PROGRAM " � 1964 THROUGH 1984 6�3U � � � � L � \ p 40�� a � 240 100 �. � � , � 0 • � �f1 � Y- OG� ffl O r N M7 � �C1 CD I`- 00 61 O r N �"? tt t� t� �� SD tD � 1� h+ � I� I� 1� i� R I'� I�- c0 aCy o0 +�0 W � o} vi O� a�i Qt Of o� O� t� O� O� O� O� O� O� O� o� O� C� � O� � � r r r a� r �— r r- e— r r r � � '— r r e— � �� GRAPH O1 illustrates the growth of the City's Economic � Development program during recent years. At the same time, however, the level of risk assumed by the City taxpayer for this program has actually declined. � ---------------------------------------------------------------- Page 18 � � ( - /�/-� � ' � � THE FINDINGS AND RECOMMENDATIONS of the � CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � . . � SECTION I � C MMISSION'S FINDINGS AND RECOMMENDATIONS � INTRODUCTION � FIND NGS IN THIS REPORT take more than one form. n some ca es th desired outcome stated in City Economic Develop ent p licy is presented in relatively precise, measura le te ms. In these cases, the. Commission has measu ed - � the var 'ous p licy goals against relevant historical perfor ance and the outco e of these measurements are summarized in thi report. In o her cases, City policy is stated in relativel � more ge eral erms or in terms which do not easily lend themsel es to precise quantitative measurement. In cases w ere quantit tive easures were not possible, the City's existin policie were reviewed and a judgement was made as to the � adequac and ppropriateness of these policies. No attempt as made to audit procedures or practices related to these types of policies, how ver. � RECO NDATIONS IN THIS REPORT represent those recomme atio s for change adopted by the Commission during he course f its deliberations. In four cases, a minority repo t � is also inclu ed as a part of this report. THE RGANIZATIONAL STRUCTURE OF THIS REPORT follows the � Economic Deve opment policy framework developed by the Commissi n an used by the Commission throughout its delibera ions. � SUMMARY FINDINGS � In t e judgement of the Commission, the City has develope and followed a comprehensive policy framework that addresse the ajor goals, policies and objectives of the Ci y' s ' � Page 19 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 Economic Development program. Furthermore, the City has been � generally successful in attaining the specific performance goals " set out in its policy framework. � In more specific terms: 1. In the opinion of the Commission, the City has used � the financial tools available to it wisely and prudently. Moreover, the Commission finds that the City has accumulated a significant level of financial resources which will enable the � City to maintain its Economic Development program even if many of the tools it has employed in the past are eliminated or restricted by state or federal action. � 2. The City has been successful in defining its role in terms of serving as a faci�litator and guide to the private - sector. The City's Economic Development program is � characterized by a wide variety of public-private partnerships that have enabled the City and the private sector to develop a broad range of Economic Development programs and projects. � 3. The City has been successful in minimizing its own financial participation in the Economic Development process and it has been successful in reducing and minimizing the level of � risk assumed by its citizens for the conduct of the City's Economic Development program. 4. The City has improved its credit rating and reduced � the level of general obligation debt associated with Economic Development activities. 5. The City has made remarkable progress in increasing � its property tax base. 6. During a period of substantial economic instability � � and stress, the City has been successful in maintaining the level of employment in the City while significantly enhancing � its potential for job creation in the future. Given this promising potential, the Commission recommends that the City increase its emphasis on job training and job placement programs as well as consider other initiatives having the potential of � providing increased job opportunities for the City's economically disadvantaged citizens. � Page 20 � � r` �, r- � �° -�i� .�� THE FINDINGS AND RECOMMENDATIONS of the � CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � � pecifically, the Commission recommends: � a. That special consideration be given in ter s of subs 'dy al ocation to projects creating job opportunities targete for conomically disadvantaged residents. � b. That, under certain conditions, some publi ly assiste proj cts should be required to demonstrate complia e with an affir ative action plan, enter into a first source � employm nt ag eement and comply with set-aside requirements for minorit , wom n and small business enterprises. � c. That the City should create a Job Creatio Investm nt Fu d for the purpose of providing incentives for the creatio of j b opportunities for economically disadvantage citizen . � # d. That the geographic boundaries of the Por Authori y sho ld be expanded to allow the Port to undertake � project in a joining suburban communities provided that su h project are tructured in such a fashion that maximizes jo opportu ities for economically disadvantaged City residents. � 7. he City has assisted a wide variety of busine ses in a wi e var ety of ways. The City has been generally success ul in retaining existing businesses, attracting � busines es fr m other locations and assisting new business o become stabl shed in the City. 8. he City has established an ambitious goal for � housing produ tion during the 1980 's and is essentially on rack toward ttain ng that goal. � 9. he City has been successful in providing a va iety of hous ng op ortunities affordable to a broad range of inc me levels. Only during recent years has the City' s ability to provide lower income housing opportunities been stifled by � policy hange at the federal level. For his reason, the Commission recommends: � a. That the City make a special effort to maintai its xisting supply of housing affordable to lower income ouseh lds, and � � Page 21 � � THE FINDINGS AND RECOMMENDATIONS • � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 � b. That the City consider the establishment of a � Housing Trust Fund as a means of providing additional, resources for providing additional lower income housing opportunities. � 10. The City has maintained an aggressive and successful program of neighborhood maintenance and � revitalization. CERTAIN DEFINED TERMS � Throughout this report, the following terms shall have � the following meanings: City. The term "the City" refers to the City of St. - Paul, Minnesota. � Commission. The term "the Commission" refers to the Citizens Commission on Bonding and Financing Practices created � by the City Council and appointed by the Mayor of the City. HRA or PED. Throughout this Report, the terms "the HRA, " "PED" or "HRA/PED" shall refer to the Housing and � Redevelopment Authority of the City of St. Paul (HRA) and its successor organization, the City's Department of Planning and Economic Development (PED) . � Port or Port Authority. Throughout this Report, the terms "the Port" or "the Port Authority" shall refer to the Port � Authority of the City o_f St. Paul. Economic Development Agencies. Throughout this report, the term Economic Development Agencies shall refer to the Port, � HRA and/or PED. Economic Development. Throughout this Report, the term � Economic Development refers to those commercial, industrial and housing development activities which have received some form of assistance from one of the City's Economic Development agencies and which are listed in Appendix A of this report, The Tracked � Economic Development Program. Direct Expenditures. Direct Expenditures shall refer � to those expenditures which are paid for from taxes levied on Page 22 � � � . l,�'��- � � THE FINDINGS AND RECOMMENDATIONS of the I CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � the gen al p operty tax base of the City. In this Report, Direct xpend tures include taxes levied by the Port and PE for , industr 'al de elopment, urban renewal or redevelopment purp ses as well as po tions of the PED's budget funded from the gen ral fund bu get o the City. � Indi ect Investments. Indirect Investments are th se investm nts m de in association with Economic Development activit'es wh ch are not City obligations. In this Report, � Indirec Inve tments include federal grants, tax-exempt and taxable reven e bonds issued for commercial, industrial and housing purpo es and additional investments made by private parties in co junction with Economic Development projects. 1 - � SCOPE OF COMMISSION'S STUDY Purs ant to the direction of the City Council, the � Commiss on wa to review and evaluate the following funding sources as th y relate to Economic Development: � 1. ax-exempt revenue bonds. 2. ax increment financing. � 3. IB funds and other general obligation bonds. _ 4. ommunity Development Block Grant funds. � The ommission tracked in detail the use of tax-ex mpt revenue bonds, tax-increment financing, general obligation onds used fo Econ mic Development purposes as well as tax levy unds � federal grant and other funds routinely utilized for Econo ic Develop ent p rposes. This tracked Economic Development program as o tlined below in Table O1, totals $2.2 billion for � the 21 ear p riod between 1964 and 1984. The ommission also reviewed the City' s use of CIB � funds a d Co unity Development Block Grant funds. The Commiss 'on f nd that a very minor portion of these funds a e used fo eco mic development purposes and that the use of hese funds a e re larly reviewed by the City's Long Range Capit 1 � � Page 23 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 ---------------------------------------------------------------- � TABLE O1 THE CITY' S ECONOMIC DEVELOPMENT PROGRAM � The program tracked by the Commission utilized the following funding sources: ' Property Tax Levies � HRA/PED $ 22,280 _____Port Authority _____2,300_r � Total Levies $ 24,580 G. 0. Bond Debt Service � HRA/PED 41,253 Port Authority - 22,787 - --------------------------------------------------�---- � Total Debt Service 64 040 Federal Grants ; Urban Renewal Grants 102,664 � UDAG Grants 51,473 ------------------------------------------------------- Total Federal Grants 154,137 � Revenue Bonds Commercial/Industrial � HRA/PED 338,678 Port Authority 631,505 --------------------------------------------------�---- � Total Commercial/Industrial 970 183 Housing � HRA/PED 420,054 Port Authority 62,345 ------------------------------------------------------- Total Housing 482,399 � Additional Investment 504,833 504,833 -----------------------------$--�---�------$--�---�---- � TOTAL TRACKED PROGRAM 2 200 172 2 200 172 (000 Omitted) ---------------------------------------------------------------- � Page 24 � � � �� THE FINDINGS AND RECOMMENDATIONS , of the � CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � Im v ent B d et C mmi ' pro q o ttee as part of the City s unified capital budge program. In light of these facts, the Commi sion � did not attem t to track these funds in detail. The agnitude of this program has grown dramatical y � during ecent years. Table 02 below shows the total dollar volume f the program during each of the 21 years from 1964 through 1984: � TABLE 02 HE CITY'S ECONOMIC DEVELOPMENT PROGRAM DI ECT EXPENDITURES AND INDIRECT INVESTMENTS � Direct Indirect Tot 1 Yea Expenditures Investments Prog am � ------- ----- ----------------------------�---------------- ---- 196 966 3 559 4 525 196 1.125 3,404 4 529 � 196 1,212 3,489 5 061 196 1,378 8,174 9 552 196 1,629 100,452 102 081 � 196 1,816 28,332 30 148 197 1,994 27,259 29 253 197 2,394 13,689 16 083 197 2,395 31,579 33 974 � 197 3,113 18,209 21 322 197 3,753 16,387 20 140 197 4,788 89,867 94 655 � 197 5,870 11,067 16 937 197 6,033 33,509 39 542 197 6,225 63,879 70,104 197 6,704 192,244 198,948 � 198 7,617 218,741 226,358 198 7,779 232,033 239,812 198 7 ,874 275,198 283,072 � 198 6,826 248,633 255,459 198 7,129 491,488 498,617 ------- ----- --------------------------------------------- ---- Tot ls 88,620 , 2,111,552 2,200,172 � Per entag s 4.03$ 95.97$ 100 .00$ (000 Om'tted ------- ----- --------------------------------------------- ---- � � Page 25 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 � GRAPH 02 � ECONOMIC DEVELOPMENT FUND SOURCES CUMULATIVE 1964 THROUGH 1984 � 9�0 � Rerenue Bonds � � Additional Investment 80 �� Federal Grants � � � G.O. Band Debt Service cly B� � U � Tax Leries i � i _ � 44 . � , � r � 20 � r ; � , 0 . . � tt' �t714h+ �:ff1 OrN �'7d' lt} tqR00 � 0 rCJ �'? ct tats7 t4cO �Dts] RI`�- h- h- I'� I'� t� til� l`- t0 o0 +Q1o0n0 O� O� Oft7� Q� O� O� �it7t07Q� Q� t7� � OfOlOIOiO� O� Oi r- r e— r e—.r- r r r r r r � e�- r r r r r � � � '��'��'�� GRAPH 02 illustrates the declining proportion of Economic � Development funds obtained from tax levies and general obligation debt service and the increasing proportion of funds obtained through the issuance of revenue bonds. ---------------------------------------------------------------- � SECTION II � FINDINGS AND RECOMMENDATIONS GENERAL STATEMENTS OF POLICY � Page 26 � � ! �� ^��.� � THE FINDINGS AND RECOMMENDATIONS of the � CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � 1'. E CITY' S STRATEGY FOR ECONOMIC DEVELOPMENT � In o der to fulfill its goal and attain its object'ves, the Cit has dopted a "market responsive" Economic Develop ent � strateg whic incorporates a very wide range of activities and is cons'stent with the relatively broad terms used by the C'ty to defi e its role in the Economic Development process. (S e the dis ussio of the City's role in the Economic Developme t � process below ) Unde its present strategy, the City looks to the � marketp ace f r most development proposals and financing pl ns. • Market orces and economic trends have more weight under th present strat gy than the redevelopment plans of the past. Typical y, ur an renewal programs began with a fairly detai ed � plan fo rede elopment, proceeded with site clearance and assembl and hen attempted to find parties willing to impl ment the pla . Un er the present strategy, the City itself ofte � initiat s pro ects which are responsive to the marketplace, however the lanning process is likely to be more particip tory than di ectiv and the role of the City in the planning pro ess � is some hat m re likely to be that of a mediator rather tha that of an ar itrator. Ther are other important differences. The econom'c ' underpi nings of the urban renewal program was based on the overly imple premise that redevelopment could be stimulate in inner c'ties ssentially by equalizing the cost of land. T e � present strat gy takes a much more comprehensive view of th relativ impo tance of redevelopment costs. Rath r than focusing on the price of land alone, t e � City' s resen economic strategy takes into account the tot 1 cost of devel pment and seeks �o reduce it in a number of w ys. Since 1 nd co ts have always been a minor part of total � develop ent c sts, it is not surprising that the present strate has roven to be relatively more effective. In e onomic terms, this strategic shift is largely the � result f a c nsidered decision by the City to alter the me hod of fina cing conomic Development activities. The City determi ed to maximize its use of revenue bond financing � techni es, n n-matching grants and other Indirect Investme ts � Page 27 � ! THE FINDINGS AND RECOMMENDATIONS � of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 + , while minimizing its use of general obligation bonds and Direct . Expenditures. In addition to changing the manner of financing Economic Development activities, the City also broadened its � scope of Economic Development activities and began the utilization of a veritable cafeteria-full of alternative financial techniques. Still, the City has greatly reduced its � dependence upon Direct Expenditures borne by local taxpayers and placed a much greater emphasis on Indirect Investmentse FINDING � The Citizens Commission on Bonding and Financing Practices was created because a series of federal legislative � initiatives seemed to pose a serious threat to the City's ability to operate under its_ flexible, market-responsive Economic Development strategy. Sunset provisions on the use of � most forms of industrial development revenue bonds appeared to jeopardize the City' s ability to assist commercial and industrial development. Proposed federal budget cuts threatened many of the grant programs the City had utilized in the past. � Proposed changes in the federal tax code appeared to effectively prohibit the use of nearly all tax-exempt revenue bonds. Other changes in the federal tax code appeared to threaten the City' s � ability to stimulate development of rental housing. In as much as the City's Economic Development strategy was based upon the use of these tools, the changes appeared to be relatively threatening. � � After nine months of intensive study of the City' s Economic Development activities and practices, the situation seems somewhat less threatening today. Although additional , restrictions are likely to be placed on the use of tax-exempt revenue bonds, it does not appear that their use will be prohibited. Although some changes in the federal tax code � appear likely it does not appear that the sweeping changes originally proposed will become law. Many of the tax incentives essential to the development of rental housing will likely be � modified, but it appears that most of them will be retained in some form. In all probability the City's Economic Development program will have to adapt to new rules and regulations but the City's essential Economic Development strategy will remain � viable. Changing federal law and regulation are not new � problems for the City' s Economic Development agencies. For each of the past five years, the federal government has changed Page 28 � � � ��"1,�� THE FINDINGS AND RECOMMENDATIONS of the � CI IZEN COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � • regulat ons o tax-exempt bond financing in some significan way. E ch n set of regulations has forced PED and the Po t to � adapt t a ne regulatory climate. Each time the tools use by these a encie have changed as well. Moreover, changes in he financi 1 mar etplace have also necessitated changes in the � manner hat t e two agencies solve problems and get deals d ne. It is a rule f thumb in the financial industry that innova ive financi g tec niques have a half-life of about six months. After a year hey are, as often as not, outdated, outmoded, � obsolet or i legal. Working with a variety of consultan s -- bankers inve tanent bankers, lawyers, accountants, syndicat rs and fin ncial consultants -- both the Port and PED have � demonst ated remarkable ability to adapt to changing circums ances It is not unreasonable to expect that these two agencie will continue to do, so. _ � In t e context of this ever-changing environment, he City's conom'c Development strategy has worked extremely w 11 and, to the e tent possible, should be retained. The City as a � stake i reta'ning a reasonable level of tax-exempt revenue bond financi g and tax increment financing authority and should ake those s eps n cessary to retain those tools which it has � success ully tilized in the past. At the same time, a maj r finding of th Commission's Study is that the City has accumul ted a impressive level of Economic Development resoure s and, if properly structured in order to maximize ong � term be efits, these resources will allow the City to condu t a broadly based Economic Development program under foreseeabl circums ances. ' � Even under worse-case circumstances whereby the fe eral govermm �t wo ld prohibit all forms of tax-exempt revenue b nd financi g, th City has sufficient resources to fashion an � effecti e Eco omic Development program. COMMISSION'S RECOMMENDATION , It i the opinion of the Commission that the City' Economi Deve opment strategy works well and remains approp iate to curr nt ci cumstances. To the extent possible, the City � should etai its flexible, market responsive strategy as w 11 as the ools 't has used in the implementation of this strate . T City has a stake in maintaining the availabi ity � of the inan 'al tools which it has used in the past and sh uld � Page 29 , � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . � GRAPH 03 PORT AUTHORITY CAPITAL � 80 � 60 , m ,c O = 40 - g � 24 � � 0 1975 1976 1977 1978 1979 1984 1981 1982 1983 1584 � ----------=----------------------------------------------------- GRAPH 03 illustrates the growth of Port Authority Capital or net � worth. The Port Authority's reserve funds represent the ma3or portion of the Port's net worth. ---------------------------------------------------------------- � make those efforts necessary to preserve a reasonable level of tax-exempt financing and tax increment financing authority for � Economic Development purposes. Should these efforts fail, however, the City is still � in a position to maintain a substantial Economic Development program. The Port Authority is positioned to carry-on its activities with a minimal level of technical adjustment even under worse-case circumstances. The situation facing PED is � , Page 30 � � � ��{�� 1 THE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � GRAPH 04 • � HRA/PED FUND BALANCES J� � 4(7 � - cr: �,� , n � - i ��:: � :� . � �.,� ,:,. �� .. �� , � ��. .��. � `� � ��... � �. � � �� ` 1975 1976 1977 9978 19i9 1980 1981 19$2 1983 198 � -------- ---- ---------------------------------------------- --- GRAPH 04 illu trates HRA/PED fund balances which also , approxim te n worth. This graph does not show general obligati n de issued by the City on behalf of the HRA or P D. -------- ---- ---------------------------------------------- --- � more com licat d, but resources available to the PED are suc that a c reful restructuring of them would likely allow the ED � to maint in a ubstantial level of Economic Development financin acti ity. Altho gh the resources available to both agencies a e � consider ble, t is important to understand that they must b used pri arily as secondary security in order to maximize th ir usefulne s. G ven the present magnitude of the City's publi ly � assisted Econo ic Development program, if the Port' s reserve or � Page 31 , � , � THE FINDINGS AND RECOMMENDATIONS of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 , the PED's fund balances were used for direct loans or subsidies they would be exhausted in a matter of weeks. � NO CHANGE IS RECOMMENDED. To the extent possible, the current policy should be maintained. � 2. THE CITY'S ROLE IN THE ECONOMIC DEVELOPMENT PROCESS The City's role in the Economic Development � process is to serve as a facilitator and guide rather than a replacement for private sector initiatives and that in working � with the private sector, the City will be guided by the following principles: _ 1. That the City' s primary responsibility is to ' its citizens and that the impact on these citizens shall serve as the primary basis for judging all Economic Development � activities. 2. That the City will minimize its own financial involvement in private Economic Development activities and will � utilize its own limited financial resources in an efficient and prudent manner. 3. That development in the City should emphasize � preservation, maintenance, rehabilitation and reuse of existing facilities, and 4. That developrinent in the City should contribute � to maximum energy efficiency. FINDING � , As discussed below, the City has been generally successful in fulfilling this role in the Economic Development � process. As defined, the City' s role contains four important concepts which have governed the Commission' s Study. These concepts include: I 1. That the City will act as a facilitator and guide for Economic Development activity. In concert with this � Page 32 � , 1 � -�3°�1:. 1 THE FINDINGS AND RECOMMENDATIONS , of the C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 ' � concept the ity's market responsive Economic Development � strateg has ngendered an emphasis on appropriate public- rivat partnerships for the City' s various Economic Develop ent a tivities. � 2. The City's primary responsibility is to i s citizen and he impact on these citizens shall serve as th primary basis for judging Economic Development activity. � Althoug many Economic Development projects provide a direc benefit to th firms or individuals directly associated wit them, t e Cit undertakes Economic Development projects for the benefit the c mmunity as a whole. In concert with this con ept, , the Co issio 's findings and recommendations emphasize the results of th City's Economic Development program as they impact he Ci y, its residents and its taxpayers. As a res lt, - � no atte pt ha been made in this study to evaluate individu 1 project . Ra her, this Study attempts to measure the impac of the ove all p ogram on the overall community. � 3. The City will minimize its own financial involve ent i Economic Development activities. At the sam time th t the City has greatly expanded its overall Economi � Develop ent p ogram, it has been successful iri minimizing i s direct inanc al participation in the process. In terms of constan doll rs, the City's direct participation in the Economi Deve opment process has trended downward during re ent � years. Moreo er, the level of the City's outstanding gener 1 obligat'on de t associated with these activities has been reduced , 4. The City will emphasize the maintenance a d preserv tion f all of its capital assets and encourage max'mum � energy ffici ncy. Impressive although it has been during recent ears, new construction represents but a minor fract'on of the ity's capital stock. For this reason, the City is ise to emph size aintenance, preservation and conservation. F r � the rea ons c ted above, however, this study does not attem t to track i deta 1 the City's rehabilitation and revitalizatio activit'es. ( In t e opinion of the Commission, the City' s succe s in fulfill'ng th s role has, in fact, significantly improved t e City' s conom c Development circumstances and, as a result, the � City is in a osition to give a higher priority to addressi g ' Page 33, ' ! i THE FINDINGS AND RECOMMENDATIONS of the , CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 . , GRAPH OS DIRECT EXPENDITURES � ADJUSTED FOR INFLATION 91 � 9 '� c 0 � 7 \ � �t � - rn 5 � � T � �M1 1 � � � \. � � � � � �' � i �, � . . ,_ �� , � , , . � 1 ` ` "� � .: N ►7 � � � n a? rn C� � cJ r� et ( [�D SD �9 frt7 L�O (�D � I� I�. t� 1� P. M1. h R � 00 C4 � 00 0] � � Q7 � O? � Q) Of O7 � � Of OS 45 Q? 07 61 � � 4) C� C.P.I. used f�r inflation adjustment � ---------------------------------------------------------------- GRAPH 05 illustrates the �act that, in real dollar terms, the , City's Direct Expenditures for Economic Development activities has been generally declining since the mid-1970 's. ---------------------------------------------------------------- � the economic needs of its economically disadvantaged citizens. The changes recommended by the Commission ref lect this higher � priority for assisting the City' s economically disadvantaged residents as well as providing recognition at the policy level of the concept of economic self-reliance. � COMMISSION'S RECOMMENDATIONS FOR CHANGE (The underlined text below indicates recommended � Page 34 , � � - �M�� THE FINDINGS AND RECOMMENDATIONS of the , CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � additio s 'to he City's existing policy statement. ) , The City's role in the Economic Development process is to serve as a facilitator and guide rather than replace ent f r private sector initiatives and that in work ng , with th priv te sector, the City will be guided by the followi g pri ciples: 1. That the City' s primary responsibility is to � its cit zens nd that the impact on these citizens shall se ve as the rimar basis for judging all Economic Development activit'es, ' 2. That the City will minimize its own finan ial involve ent i private Economic Development activities and ill utilize its o n limited financial resources in an efficient and � � prudent manne , 3. That the Cit should make a s ecial effor to � serve t e nee s of its economicall disadvanta ed citizens, 4. That development in the City should empha ize � preserv tion, maintenance, rehabilitation and .reuse of exis ing facilit 'es, a d rotection of the natural environment, 5. That development in the City should contri ute ' to maxi m en rgy efficiency, and 6. That develo ment in the Cit should contri ute , toward aximi ation of economic self-reliance. 3 THE CITY' S ECONOMIC DEVELOPMENT GOAL � OMMISSION' S RECOMMENDATION FOR CHANGE , In o der to reflect a greater emphasis on providing assistan e to economically disadvantaged City residents, the Commissi n pr poses that the following goal statement be consider d by the City. (The underlined text below reflects � addition 1 la guage recommended by the Commission. ) � , Page 35 i � THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES , January 22, 1986 Within a context of fiscal inte rit and financial , 9 Y restraint, the City of St. Paul is committed to: l. Maintaining a strong, diversified and � expanding local economy which will maximize economic opportunities for all of its citizens, � 2. Making a special effort to provide economic and employment opportunities for its economically disadvantaged � citizens, and 3. Providing the most attractive possible residential living environment for all of its citizens -- � regardless of economic circumstances. 4. THE CITY'S ECONOMIC DEVELOPMENT OBJECTIVES � � COMMISSION'S RECOMMENDATION FOR CHANGE Consistent with its preceding recommendations, it is � the opinion of the Commission that the City should consider the following as its Economic Development objectiues. The � underlined language below represents additional language proposed by the Commission. FZSCAL INTEGRITY AND FINANCIAL RESTRAINT ' 1. The City desires to preserve and improve its credit rating and general financial condition. , 2. The City desires to minimize its direct financial participation in Economic Development activities. 3. The City desires to increase its property tax base. � A STRONG, DIVERSIFIED LOCAL ECONOMY � 4. The City desires to maintain and expand job opportunities available to all of its residents. 5. The City desires to make a special effort to � maximize job opportunities for its economically disadvantaged residents. � Page 36 � � , �� /,3i�' ' THE FINDINGS AND RECOMMENDATIONS of the , CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 ' C. he City desires to retain and attract a wide var�iety of f -profit businesses as well as non-profit , organiz tion and governmental agencies. 7. The City desires to assist appropriate busines es � of all ypes to become established, to expand, to relocate r to locate ithi the City. 8. The Cit desires to encoura e Economic Develo ent � which ximi es ener efficienc and economic self-relianc . 9. The City will discourage projects which will ' ne ati el i act the environment or ne ativel im act hist ric reser ation A SA E, ATTRACTIVE RESIDENTIAL LIVING ENVIRONMENT � ' 10. The City desires to provide and preserve a wide variet of h using opportunities for persons of all econom'c , circum tance . , 11. The City desires to maintain, preserve and i prove the ch racte , quality and diversity of its residential � neighb rhood . � 12. The Cit desires to make a s ecial effort to , mainta n the su 1 of housin units available to its lowe income resid nts. , 13. The City recognizes the need for a safe enviro ment or its residents. � � , , , Page 37 � i THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . SECTION III , COMMISSION'S FINDINGS AND RECOMMENDATIONS THE CITY'S FUNDAMENTAL ECONOMIC DEVELOPMENT POLICIES � � The Commission's findings and recommendations relative � to each of the City's fundamental Economic Development policies are presented below. FISCAL INTEGRITY AND FINANCIAL RESTRAINT � Credit Rating and Financial Condition POLICY , 1. Credit Ratinq. The City will seek to obtain and � maintain a "AAA" rating in order to reduce long-term interest expense on its obligations. FINDING • � The City's credit rating was upgraded by the Standard and Poor 's Corporation from "AA" to "AA+" in t984. � COMMISSION'S RECOMMENDATION FOR CHANGE NO CAANGE IS RECOMMENDED. , POLICY 2. Financial Condition. The City will seek to ' maintain the fiscal integrity of its operating, debt service and capital improvement budgets in order to provide essential � services, maintain public infrastructures and promote the expansion of the private tax base. FINDING � In order to maintain the fiscal integrity of its operating and capital expenditure budgets, the City has adopted � and follows a comprehensive and integrated set of policy guidelines which have been instrumental in maintaining and improving the City' s financial condition. At the same time, these policies recognize the importance of Economic Development � Page 38 , � � d tYc l� / � r�r� � ' , THE FINDINGS AND RECOMMENDATIONS of the ' C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 ' activi ies a well as the special needs of Economic Develo ent projec s and programs. The Commission finds that the City's ' polici s in his area are thorough, thoughtful and effecti e. COMMISSION'S RECOMMENDATION FOR CHANGE , NO HANGE IS RECOMMENDED. POLICY � 3. Overlapping General Obligation Debt. The Cit will reduce its p r capita overlapping general obligation debt atio to a 1 vel o $900 or less by 1985 and reduce its overlapp'ng ' debt a a pe centage of Estimated Market Value to six" per ent or les duri g the same time-frame. ' FINDING In anuary of 1978, the Mayor and City Council ad pted � a goal for r ducing the City's general obligation indebted ess. This g al wa developed through an intergovernmental task orce which nclud d representatives from the City, the Port ' Author ty, t e School District and Ramsey Courity. The spe ific goal f r ove lapping general obligation debt reduction was to reduce per c pita overlapping debt in the City to $900 or ess by 198 and o reduce overlapping general obligation debt s a � percen aqe o Estimated Market Value to six per cent or � le s during the s me time period. , Acc rding to the 1982 General Obligation Debt Sta us Report the ost recent report available on this issue, overla ping eneral obligation debt per capita had been re uced , from $ 97 in 1977 to $913 in 1982. Debt as a percentage o Estima ed Ma ket Value had been reduced from 10.3 per cent in 1977 t 4.1 er cent in 1982. The Mayor ' s Budget Office i presen ly dr fting a revised status report to update the 1 82 ' report Th importance of this policy to the Economic � Develo ment rogram is that it limits potential funding so rces for th Cit ' s Economic Development program and projects. This debt r duct' n policy restricts the amount of all general obliga ion nds issued by the City including those which ight , be iss ed f Economic Development purposes. From 1960 th ough Page 39 �� i THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES ' January 22, 1986 . GRAPH 06 , GENERAL OBLIGATION BONDS ISSUED ECONOMIC DEVELOPMENT PURPOSES , 20C300 � HRr�JPED � Fart �uthority , 1500Q � �� c ' a � � 1 t�000 - , � � 5(700 , �" ' a �t) C9 h- 00 Q> O *- N � ct lC? �D 1+ QD � O � N r''} � ' � �o � � � R M1 ti r r.� r- r- r• ti r. � o 0 0 o a> a o o, v, v, a� o� a� rn c� o� rn a� a� a� o� o, v� v� rn rn oa r r- � e- �- r r r � �- � r r � � � � r r- r �� GRAPH 06 illustrates the fact that the issuance of general � obligation bonds for Economic Development purposes has been curtailed. ---------------------------------------------------------------- � 1975, general obligation bonds were the primary source of , funding for Economic Development purposes. Both the HRA and the Port Authority frequently issued general obligation bonds to finance projects and programs prior to the adoption of the debt reduction policy. Furthermore, the policy has greatly � restricted the City's inclination to issue general obligation tax increment bonds. As noted above, this policy was instrumental in causing , a redefinition of the City's underlying strategy for financing ' Page 40 ' � �� -i�i.��' � � THE FINDINGS AND RECOMMENDATIONS of the ' C TIZE COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 I • GRAPH 07 GENERAL OBLIGATION BONDS OUTSTANDING , ECONOMIC DEVELOPMENT ACTIVITIES 8 00 � HRa/PE , � Part Aut ority � 00 � � c , � 0 4 00 � - ' 204 0 , ' . � �.. 0 . , cv r� �t �n � r oo rn o r c� � � � � cCOa � t°� r� ti � r- r� nr� tir- c000aoa� ao o, aa a� a� o� rn a, o� o� o� ad a� o� o, o, Qi o� o� v� r- � e- r r � r � � � r r r � r- r r r r , -------- ----- ---------------------------------g----------- --- GRAPH 07 illus rates the fact that the level of eneral obligati n bon s outstanding for Economic Development activi ies is lower now t an it was ten years ago. , -------- ----- --------------------------------------------- --- , Economic Devel pment activities. Unable to depend upon gener 1 obligati n bon s for these activities, the City began to use wide vari ty o financial alternatives. As we shall see belo , this stra egic shift resulted in city taxpayers assuming a ' declining leve of risk for an increasingly expansive Economi Developme t pr gram. ' C MMISSION'S RECOMMENDATION FOR CHANGE O CHA GE IS RECOMMENDED. , ' Page 41 , , THE FINDINGS AND RECOMMENDATIONS . ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES ' January 22, 1986 _ GRAPH 08 I DIRECT EXPENDITURES EXPRESSED AS A PERCENTAGE OF TOTAL PROGRAM , �0 , �� , � L ' � - U � 20 � � - . � , �\ � , , � � 1�J 1 � 1 � , � � �� \ 'ti, ,� ti. 4 ,4 44 � \ `, 44 �. ti \ \, � ` ` � ,�. � � ls7 �S: 1� 00 QY t� *— N r''} �l' U7 GU h'� OQ Qf O r N M �t ' � cY's c� s� [Lti cD h- I� I� h� I� ti 1'� f� I� t� a7 W o0 ap o0 O� � � Of Of O� O� Di O� O> O� O� d� tb C� Oa C�f O� t�i t]a O� � r r r �- r r r- e- � r � � � r � r- � r r e- ��'��'��'�� GRAPH 08 illustrates the fact that Direct Expenditures measured as a percentage of the City's total Economic Development program ' have declined dramatically since the mid-1970' s. ---------------------------------------------------------------- Minimize Direct Financial Partici ation � P in Economic Development Activities POLICY I 4. Minimal Direct Financial Participation. The City , will minimize its own financial involvement in private Economic Development activity and will utilize its limited fiscal resources efficiently and prudently within leverage and return on investment criteria established by the City. ' Page 42 , ' � �G -,��.� � THE FINDINGS AND RECOMMENDATIONS of the , C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 ' � GRAPH 09 GENERAL OBLIGATION BOND DEBT SERVICE , AS A PERCENTAGE OF TOTAL PROGRAM ' 34 25 , a.., 20 � - ' � , - U L 15 � _ � � 14 , 5 � 1 � •� � 4 \ � � 1 � �. , � U� CD h� CU � O r N r'? �' LL7 G9 � RJ 09 O � �D �D c� � � a� t� I� I� P� I�- t� M1 � I� 1� ad a0 a�0 aCi O� O� Oi oi Or v� � vi o� Qi tr o� O� �. or O� O� �i o� O� � r- r r- e- r r � e- � r r � �- r e- r � r r , �� '�� '��'�'��'� �� GRAPH 09 illu trates the fact that as the issuance of genera � obligati n bo ds was curtailed and the magnitude of the City' s Economic Deve opment program increased the proportion of the City's E onom'c Development program represented by general , obligati n_de t service decreased sharply. ---------------------------------------------- --- ' FINDINGS Unti the mid-1970 's, the City's Economic Developme t ' program as 1 gely dependent upon Direct Expenditures. Bot the Port and levied taxes for Economic Development activiti s and both agencies utilized a substantial level of � general bliga ion bonding in order to carry out their ' Page 43 � ' THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 _ , programs. Between 1960 and 1978, the Port and HRA utilized approximately $65 million of general obligation bond proceeds. These bonds were issued by the City on behalf of the two ' agencies and the taxpayers of the City were obligated to pay the debt service on these bonds. As a result of the City' s debt reduction policy, the issuance of general obligation bonds for ' Economic Development purposes was sharply curtailed. The HRA did issue some $8.5 million of general obligation bonds in 1979 for downtown development and neiqhborhood housing development � purposes, but since that time only a small amount of general obligation bonds have been issued for Economic Development purposes. The last Port Authority general obligation bond issue was sold in 1974 and was used for the acquisition and- ' improvement of the Midway Industrial Park. ------------------------------------------------N--------------- Table 03 � GENERAL OBLIGATION DEBT OUTSTANDI G ECONOMIC DEVELOPMENT AGENCIES General Obligation ' Bond Debt _________Year ____Outstanding ' ------------------------ ------------ 1964 $ 14,200 1965 16,400 1966 17,390 � 1967 21,405 1968 23,720 1969 25,860 ' 1970 31,080 1971 30,610 1972 38,585 1973 44,175 � 1974 58,525 1975 66,060 1976 64,540 ' 1977 63,025 1978 61,445 1979 67,785 ' 1980 65,495 1981 63,155 1982 61,250 1983 58,430 , 1984 . 55,185 ---------------------------------------------------------------- (000 Omitted) Page 44 ' � �- ,!.� �� ' ' THE FINDINGS AND RECOMMENDATIONS of the � CITIZEN COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 , As result, the City's level of general obligatio _ bonds o tsta ing for Economic Development purposes has tre ded , downwar . T le 03 above shows the combined amount of gene al obliqat'on b ds outstanding issued by the City on behalf o the HRA and Port uthority. ' Bot the HRA and the Port retain authority to levy taxes f r ec nomic and industrial development purposes, but the Port ha dec ined to utilize its tax levy authority for the past , three y ars. Dur 'ng the same period that the City has used a le ser � proport'on o Direct Expenditures, the City' s Economic Develo ent ogram has expanded dramatically through the incr.easing u ilization of Indirect Investments. Table 04 low shows e do lar amount of the City's Economic Development � ' progra for he years 1975 through 1984 as measured by sour es of fun s. T e increase in the program' s size from 1979 on ard should be no ed. ' Thi trend away from Direct Expenditures toward Indire t Inv stments is further illustrated when current t x levy e pendi ures and general obligation debt. service expe ses � ------ --- - ---------------------------------------- ----- TABLE 04 � , SOURCES OF FUNDS PUBLICLY ASSISTED ECONOMIC DEVELOPMENT , Direct Indirect Total ____Ye r____ Expenditures_____Investments_______Program___ ------------ ----- ' 19 5 $ 4,788 $ 89,867 $ 94,655 19 6 5,870 11,067 16,937 19 7 6,033 33,509 39,542 ' 19 8 6,225 63,879 70,104 19 9 6,704 192,244 198,948 19 0 7,617 218,741 226,358 19 1 7,779 232,033 239,812 , 19 2 7,874 275,198 283,072 19 3 6,826 248,633 255,459 19 4 7,129 491,488 498,617 , ------ ---- ---------------------------------------------- ----- (000 O itte ) , Page 45 , � INDIN RECOMMENDATI NS ' THE F GS AND O of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 . ' are compared with revenue bonds issued, federal grants received and additional investment. Table 05 below shows these ' expenditures and investments for the City's Economic Development program during the years 1964 through 1984. Based on this data, and in light of the fact that the ' City's credit rating was recently upgraded, it is the opinion of the Commission that the City has been successful in minimizing ---------------------------------------------------------------- ' � TABLE OS SOURCES OF FUNDS PUBLICLY ASSISTED ECONOMIC DEVELOPMENT PROGRAM , Tax Levy G.O. Bond Revenue Other Total _ Year______Funds Debt Service Bonds Funds* Program ' ---- ------------------------------------------------- 1964 $ 507 $ 459 $ 1,415 $ 2,144 $ 4,525 1965 495 630 450 2,954 4,529 ' 1966 488 724 0 3,849 5,061 1967 498 880 3,115 5,059 9,552 1968 601 1,028 16,135 � 84,317 102,081 ' 1969 594 1,222 2,820 25,512 30,148 1970 614 1,380 8,325 18,934 29,253 1971 605 1,789 0 13,689 16,083 1972 538 1,857 7,430 24,149 33,974 , 1973 716 2,397 560 17,649 21,322 1974 977 2,766 4,520 11,867 20,140 1975 1,166 3,622 69,285 20 ,582 94,655 , 1976 1,394 4,476 8,190 2,877 16,937 1977 1,426 4,607 19,970 13,539 39,542 1978 1,223 5,002 44,190 19,689 70,104 ' 1979 1,625 5,079 173,861 18 ,383 198,948 1980 2,026 5,591 120,775 97,966 226,358 1981 2,233 5,546 213,108 18,925 239,812 1982 2,370 5,504 164,310 110,888 283,072 ' 1983 2,229 4,597 226,025 22,608 255,459 1984 2,255 4,874 368,098 123,390 498,617 ------------------------�------------�----------_---- • Totals $ 24,580 $ 64,040 $ 1,452,582 $ 658 ,970 $ 2.,200,172 ' Per Cent 1.12$ 2 91$ 66 02$ 29 96$ 100 00$ ---------------------------------------------------------------- (000 Omitted) ' *Other Funds include federal grants and additional investment. Page 46 ' ' � ..v., ' "�/...+ ITHE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 ' its awn finan ial involvement in development activity and u ed its lim ted r sources efficiently and prudently. ' OMMISSION'S RECOMMENDATION FOR CHANGE ' NO C NGE RECOMMENDED. . POLICY ' S. inancial Leverage. Minimum leveraging is nor lly 1:6. (E ch d llar of public investment should leverage at 1 ast six doll rs o private investment. ) This ratio may be as lo as ' 1:3 if t e pr ject is: _ a. irectly associated with concentrated neighborh od revitali atio efforts. - ' b. C eating permanent jobs within the City. ' c. D'rectly associated with conservation of nonrenew ble e ergy sources or development of energy efficie t alternat ves. , d. D rectly related to the development of low and moderate incom housing. , FINDINGS The r tios contained in this policy are used in two ways. Fi st, hey are used by City staff inembers to analyze ' proposed evel pment projects. Given the fact that such proposals are ased on appropriately conservative assumptions, the ratio in his policy for are reasonable for this purpose. ' (It is al o im ortant to note that only in the rarest of circumsta ces oes PED or the Port recommend p�ojects with a leverage atio pproaching 1:3. ) Secondly, the concept of a leverage atio "s also useful in measuring the performance of , the City' over 11 Economic Development program. When used f r this purp se, t e City should expect to demonstrate a leverag ratio muc high r than 1:6. • , easur ng the ratio of Direct Expenditures to net investmen , the leverage ratio for the City' s Economic Developme t pro ram during the past decade has averaged - , ' Page 47 , , ' THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 � GRAPH 10 , LEVERAGE RATIO CUMULATIVE 1964 THROUGH 1984 ' 60 5t� ' � � a> �� 40 L � � J ,� � � � 2� � - ~ ` � , .�4 �� , � � � c�, r� oo cn c� � cv r� � u� co r � rn o � c� r, �t ' � ds cs7 rs� v] sn t� I� -r- I'� h� ti I� h� h�- t� � oU aQ a0 Qa �i Q� Q! rn vr O� �h O� Q7 O� O� o� O� � O� O� v� �i O� A7 O� �— �— r r � r r r- � e�- r r � � r r r � r r � �� GRAPH 10 illustrates the City's leverage �ratio using cumulative ' net investment and current tax rates for the period 1964 through 1984. ---------------------------------------------------------------- ' approximately 53:1 during recent years. (Net investment is defined as the change in the City's Estimated Market Value from , one year to the next. The Estimated Market Value is the measure of the City's property tax base most closely approximating the market value of the City's real estate. ) Table 06 below shows ' the City's overall leverage ratio for the years 1975 through 1984. Based on this data, the Commission finds that the ' City' s Economic Development program has consistently exceeded its financial leverage policy. In recognition of the growing need for child-care services within the workplace, the ' Commission does propose additional language be inserted in Page 48 , ' � �� y,�� ' THE FINDINGS AND RECOMMENDATIONS of the ' C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 , TABLE 06 , LEVERAGE RATIO 1975 THROUGH 1984 Year Leverage Ratio ' ------- ---- --------------------------------------------- ---- 1975 34:1 ' 1976 17 :1 1977 30 :1 1978 44 :1 1979 49:1 ' 1980 61:1 - 1981 98 :1 1982 82:1 1983 65 :1 ' 1984 52:1 ------- ----- --------------------------------------------- ---- ' this po icy i order to encourage developers to include day care facilit es wi hin new developments. ' COMMISSION'S RECOMMENDATION FOR CHANGE The ommission proposes the following language for ' conside ation as revised City policy. The underlined langu ge . represe ts ad itional language proposed by the Commission: ' S. inancial Leverage. Minimum leveraging is nor ally 1:6. ( ach d llar of public investment should leverage at east six dol ars o private investment. ) This ratio may be as 1 as 1:3 if he pr ject is: � a. irectly associated with concentrated neighbor ood revital zatio efforts, , b. reating permanent jobs within the City, c. irectly associated with conservation of ' nonrene able nergy sources or development of energy effici nt alterna ives, , d. irectly related to the development of low and moderat inco e housing, or ' Page 49 , ' THE FINDINGS AND RECOMMENDATIONS I of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES ' January 22, 1986 e. If the project includes adequate space for a , lincensed child-care center located within the project or if the developer of the project pavs a one-time charge equal to $1 per ' square foot of leasable floor space for day care services or facilities which will serve employees of the project. (See CAP, 14 ) . , MINORITY REPORT A minority of Commission members propose that paragraph ' "b" of the above policy statement should be amended to read: b. Creating jobs for City residents. ' This position is based on four premises regarding the - City's Economic Development program: , 1. That the City's paramount responsibility is to its own residents and the objective of the City' s Economic ' Development program is to benefit residents of the City. 2. The City faces a higher level of problems associated with unemployment,� poverty and racial prejudice than ' do neighboring suburban communities and that Economic Development resources should be focused on finding solutions to these problems. ' 3. As a quid pro quo for receiving assistance through the Economic Development program, firms and developers should give consideration to providing job opportunities for City ' residents and give particular consideration to providing job opportunities for economically disadvantaged City residents. 4. The City allocates significant City resources in � order to provide Economic Development assistance and, for this reason, the needs of City residents should be the guiding ' principle of the City's Economic Development program. The following seven members of the Commission endorse this minority report: Ms. Ackland, Ms. Davis, Mr. Dorgan, Mr. ' Drew, Mr. Empson, Ms. Pillow and Ms. Sonnen. , Page 50 ' ' � �� ,�� , THE FINDINGS AND RECOMMENDATIONS of the , C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 I � GRAPH 11 REAL DOLLAR CITY TAX LEVY , ADJUSTED BY CONSUMER PRICE INDEX 100000 � ' 50000 ' 64000 _ � - ' 40000 � � � , � � � 20000 � \ \ ' � \ �. � � \ \ \ � � ' o � �D h- � � O r N 1� cF LL7 ffl I'-- 90 � O e— N N] � <D u] tO ts7 1� 1� � 1`� �� 1� ti h I� R c0 47 W Q1 0� O� G� oi O� O� Of O� O� oi t7� O� t7� Oi O� O� Oi Oi O� Or r T � r T r T f r r T T T r' P" r r T �"' , �� GRAPH 11 ' llus ates the fact that the City's tax levy, when ' adjusted or i lation, has generally declined during recent years. --------- ----- --------------------------------------------- -- ' POLICY ' . Re urn on Investment. The annual return in the form of n w pro erty tax revenues shall be, at a minimum, 12 er cent of t e Cit 's investment unless the project is directly , associate with the enumerated exceptions to the leverage policy. FINDINGS ' wit its policy on financial leverage, the City us s ' Page 51 ' , THE FINDINGS AND RECOMMENDATIONS ' ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES ' January 22, 1986 this return on investment measurement to analyze project ' proposals as well as to measure overall Economic Development performance. In both cases, a measure of additional tax revenue ' must be compared with Direct Expenditures. One result of the City's increasing tax base has been � generally declining tax rates. Table 07 below shows the City' s tax levy as a percentage of its Estimated Market Value. ---------------------------------------------------------------- , TABLE 07 CITY TAX RATES AS A PERCENTAGE OF ESTIMATED MARKET VALUE_ ' Year City Tax Rate ---------------------------------------------------------------- � 1964 1.34$ ' 1965 1.35$ 1966 1.35$ 1967 1.31$ , 1968 1.32$ 1969 1.40� 1970 1.38� ' 1971 1. 50$ 1972 1.38$ 1973 1.64� 1974 1.29$ � 1975 ° 1.03� 1976 1.24$ 1977 0.97$ ' 1978 , 0.94$ 1979 0.85$ 1980 0.82$ 1981 0.68$ ' 1982 0.65� 1983 0.68$ --------------1984------------------------------0_71$_ ' The percentages in Table 07 may be used to calculate additional tax revenues generated from additional tax base by ' multiplying net investment by the tax levy as expressed as a percentage of Estimated Market Value. In turn, return on investment may be determined by dividing Direct Expenditures by ' Page 52 ' ' 1 � -��.� ITHE FINDINGS AND RECOMMENDATIONS of the ' CITIZ NS COMMISSION ON BONDING AND FINANCING PRACTI S January 22, 1986 � � GRAPH 12 CITY TAX LEVY � AS A PERCENTAGE OF ESTIMATED MARKET VALUE '1. ' � , � 1. c Cj 1_� ' � � � - � .� ,: � . � �. �` �` : �, �, .6 �. � � ` '�: � � � � `�: � � , �. \ � �. � � � � .4 r'? �# � t� +� rn O ,- cJ N? d� u) c4 t� 00 rn Gi r- cJ r� ' Ifl CD ti7 tD CO !D h. Iti 1*. la I� h•. t� •I`�- 1� ti �0 9� OC� 00 o� rn c� o� � rn � oy_ cn rn 6► a� rn rn rn � a� w � rn Year Payable � ------- ---- -------------------- ---------------------- --- GRP,PH 12 illus rates the fact that the City's increasing tax � base_has resul ed in lower tax rates. ---- ----- --------------------------------------------- --- raddition 1 tax revenues generated by additional tax base. T ble 08 below shows the City's return on investment for the years 1975 thr ugh 1 84. , espi e declining tax rates, the City has achieved a return on inve tment ratio substantially in excess of the ret rn � on inves ent ntemplated by City policy. It is the opinion of the Commi sion hat the City would achieve a more meaningful measure o over 11 Economic Development performance by measur ng additiona tax evenues generated from an expanding tax base ' through t e use of a coverage ratio. Calculation of a covera e ' Page 53 � ' THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES ' January 22, 1986 . � ---------------------------------------------------------------- TABLE 08 � RETURN ON INVESTMENT AS A PERCENTAGE OF DIRECT EXPENDITURES Return on � Year Investment* ---------------------------------------------------------------- 1975 36.38$ � 1976 20.86$ 1977 29.29$ 1978 41.41$ 1979 41.56�- � 1980 50.43$ 1981 66.81� 1982 52.93$ � 1983 43.66$ 1984 37.14� ---------------------------------------------------------------- ratio should take into account all of the tax levies payable by � City taxpayers and measure this amount against Direct Expenditures. Table 09 below shows the coverage ratio for the ' City's Economic Development program for the years 1975 through 1984. ---------------------------------------------------------------- TABLE 09 � COVERAGE RATIO TAXES GENERATED FROM NET INVESTMENT � Coverage Year Ratio ---------------------------------------------------------------- � 1975 1.43x 1976 0.63x 1977 1.19x � 1978 1.55x 1989 1.61x 1980 1.85x � 1981 2.60x 1982 2.34x 1983 1.94x --------------1984 ----------------1_61x ' -------------- ----------- Page 54 ' � � �--,�� THE FINDINGS AND RECOMMENDATIONS of the , ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC January 22, 1986 � � GRAPH 13 COVERAGE RATIO ' TAXES GENERATED/DIRECT EXPENDITURES � � � ,. � � � °� � Q U 1 � � . � � F— .5 � � � 0 m � m � � � I� h- ti R 1`�� ti IM1 ti I�+ ti a�0 a0 oN0 a�''�0 Of Q� �f 0� O� O� oi O� Di O� oi O� O� Q� O� Qi � ai C� Ci � , T T T T r T T r' r r !� r r !� r r r r T T �� GRAPH 13 illus rates the fact that on a cumulative basis the � City's E onomi Development program has generated tax revenu s in exces of D rect Expenditures since 1969. -------- ----- --------------------------------------------- --- ` As a esult of this coverage ratio calculation, it 's apparent that he City's Economic Development program more t an � pays for itsel through additional tax revenues generated -- and that it as be n self-sustaining on this basis for at least 5 years. � C MMISSION'S RECOMMENDATION FOR CHANGE he R turn on Investment policy serves two purposes: � � Page 55 �' � THE FINDINGS AND RECOMMENDATIONS ' of the , CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 . � 1. It serves as minimum guidelines for members of - the PED and Port staffs in evaluating and analyzing specific � development and redevelopment projects. For this purpose, the policy is reasonable and should not be changed. 2. The policy also serves as a yardstick for use � by other members of the City staff in analyzing and evaluating • overall performance of the City's Economic Development program. For this purpose the Commission recommends that the following � measure be used and incorporated into City policy: Coverage Ratio. Net investment measured in terms of the annual change in the Estimated Market Value should generate � additional property tax revenues at current rates at least equal to the current direct costs associated with the City' s Economic _ Development program. In making this computation, the tax levies of the City, the School District and the County should be taken � into account. POLICY � 7. Minimum Return. Projects associated with the enumerated exceptions to the leverage policy are subject to the � following minimal return policies: a. In no case may the return in terms of tax revenues be less than the cost of additional services required. � b. In all cases, additional tax revenues generated � from a project shall be sufficient to repay the City's investment over the course of the lifetime of the asset provided. ' FINDINGS In as much as these policies relate to specific � projects, no attempt was made to analyze them on behalf of the Commission. However, it is the opinion of the Commission that they represent prudent policy and should be retained. � COMMISSION RECOMMENDATION FOR CHANGE NO CHANGE RECOMMENDED. � Page 56 � � f, � � c`" C�, .. ,/ x:' C�" � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � � GRAPfl 14 ESTIMATED MARRET VALUE EQUIVALENTS � AS ADJUSTED BY CONSULTANT 8 � � 6 � c � � , 4 m � 2 � 0 � � � � � � ti ti � rn rn rn � rn � rn rn Present Yalues � ------ ----- -------------------------------------------- ---- GRAPH 4 sh s the present value Estimated Market Values f r the � City f om_19 9 through 1984. ------ -------------------------------------------- ----- � Property Tax Base Increase - POLICY � 8. Tax ase Increase. The City shall seek to increas its tax ba e at n annual real-dollar growth rate of at least wo � per ce t of he City's Estimated Market Value. FINDING � The current rate of growth of the City's tax base � Page 57 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . GRAPH 15 � REAL DOLLAR ESTIMATED MARRET VALUE EQUIVALENTS AS ADJUSTED BY COPTSULTANT � 6.5 , � 6 �� 0 � 5.5 _ � �- o� - c� 5 � � T ` 4.5 � � � 1. . 4 �� c°1o, n¢. n�. n`�o � rn rn rn rn� rn rn � ---------------------------------------------------------------- � GRAPH 15 shows the City's Estimated Market Value in real dollar terms which eliminate the impact of inflation on real estate � property values. ---------------------------------------------------------------- especially when measured in constant dollar terms, is impressive � for several reasons. The current growth rate is substantially � higher than the two per cent real dollar growth rate adopted by the City as its policy goal in 1980. The City' s average annual growth rate over the past decade surpasses past performance by a significant margin. The current rate for the decade ending in � 1984 exceeds the growth rate for every other decade during modern times. The current growth rate is also impressive in a long-term historical context. In historical terms, City's tax i Page 58 � � � ��'�-�. � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION OP1 BONDING AND FINANCING PRACTIC S January 22, 1986 � base g owth olicy appears ambitiously aggressive. Since 914 the av rage nnual rate of change in the City's real-dolla tax 1 base o er t past 70 years has been approximately zero. Moreov r, th current growth-rate trend reverses a 15 year period of ta base erosion and this turnabout appears to b � direct y rel ted to the City's Economic Development activi ies and it revi ed Economic Development strategy. In rder to measure past performance relative to he City's tax b se grawth policy, it was necessary to assembl compar ble t x base data over the longest period of time possib e. T is was necessary in order to determine what 1 vel � of tax base ncrease might reasonably be expected in light of past e perie ce. Assessed values in nominal terms were assemb ed on an annual basis going back to the year 1914 the year t e Cit adopted the Commission form of government. fter - � a seri s of djustments were made by the Commission' s Staf Consul ant, omparable nominal and constant dollar Estimat Market alue equivalents were calculated for a period betwe n � 1929 an 198 . Tak'ng the Consultant' s adjustments into account, able 10 bel sho s the average rates of change for the five dec des, � 1935 th ough 1984. ------- ---- ---------------------------------------------- ---- � TABLE 10 AVERAGE RATES OF CHANGE ADJUSTED ESTIMATED MARRET VALUE � _ Real-Dollar Rate of Change Deca e Change � ------- ----- --------------------------------------------- ---- 1935 - 1944 -4.80 � 1945 - 1954 -2.59 $ 1955 - 1964 1.71 $ � 1965 - I974 -1.51 $ 1975 - 1984 2.42 $ ------- ----- --------------------------------------------- ---- � Implici Pric Deflator for Structures used for inflation adjustm nt. � � Page 59 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 Based on the information in Table 10 above, the two per � cent annual real-dollar growth rate goal appears to be ambitious, but the results of the most recent ten year period � seem to indicate that it can be attained and should be retained. The City's performance during the past five years is particularly impressive. Table 11 below shows the annual � constant dollar growth rate for the years 1980 through 1984. ---------------------------------------------------------------- TABLE 11 � RATE OF GROWTH MOST RECENT FIVE YEAR PERIOD Year Rate of Growth� ---------------------------------------------------------------- � 1980 0.24 � - 1981 9.17 $ � 1982 10.46 � 1983 8.50 $ 1984------------------------------6_33 $ � ------------- ----------------- When measured in terms of real-dollar valuations, the City's performance during the past five years �reverses a 15 year � period of tax base erosion. Again, taking the Consultant' s adjustments into account, Table 12 below shows nominal Estimated Market Value equivalents and real-dollar Estimated Market Value � equivalents using the Implicit Price Deflator for constant dollar adjustments. (Real-dollar values are adjusted to be equivalent to 1984 dollars. ) The table covers the period from 1964 through 1984 and shows that the nominal or present value of � the City's tax base has increased over time, but, at the same time, the constant dollar tax base actually declined steadily until 1980 when it once again began to increase. � The magnitude of this trend can be seen in Table 13 below which shows Net Investment amounts for the same time � period. Thi data also takes the Consultant's adjustments into account and compares the real- dollar tax base amount to the amount of annual real-dollar net investment during the years 1965 through 1984. � , � Page 60 � � � �6-��..� � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � ' CONCLUSION � The average annual constant dollar rate of change over the mo t rec nt ten year period is 2. 42 per cent, slightly more than t e two per cent rate of increase called for in the C'ty's � tax ba e inc ease policy. During the most recent five yea period, the ity's constant dollar Estimated Market Value as increa ed by more than four per cent annually. When measur d on a cons nt d llar basis, the City's tax base was cleclining rom � ------- ---- ---------------------------------------------- ---- TABLE 12 � PRESENT VALUE AND REAL DOLLAR VALUE _ ESTIMATED MARRET VALUE EQUIVALENTS Present Value Constant Dollar - � ____Yea _ ____EMV Equivalents_______EMV Equivalents ---- - ------------ --------------- ---- � 196 $ 1,590,566 $ 5,973,512 196 1,617,065 5,957,607 196 1,652,473 5,881,682 � 196 1,689,781 5,973,534 196 1,753,270 5,737,974 196 1,843,590 5,590,671 197 1,930,264 5,496,346 � 197 2,129,400 5,678,400 197 2,221,635 5,598,520 1973 2,329,033 5,414,356 � 1974 2,543,416 5,123,427 1975 2,727,942 4,963,475 1976 2,824,706 4,926,131 1977 2,988,000 4,777,766 � 1978 3,265,424 4,662,249 1979 3,616,908 4,566,437 1980 4,052,291 4,577,218 � 1981 4,822,370 4,996,863 1982 5,528,120 5,519,359 1983 5,988,535 5,988,535 1984 6,367,734 6,367,734 � -------- ----- --------------------------------------------- --- Implicit Price Def lator Used for Constant Dollar Adjustments (000 omi ted) � � Page 61 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 1965 through 1980. Since 1980, the City's inflation adjusted � tax base has been growing at an impressive rate. Therefore, . based on recent performance, the City's policy goal appears � ambitious, but realistic and it should be retained. COMMISSION'S RECOMMENDATION FOR CHANGE NO CHANGE RECOMMENDED. � ---------------------------------------------------------------- � TABLE 13 REAL DOLLAR NET SNVESTMENT 1964 THROUGH 1984 Constant Dollar Constant Dollar � Year EMV Equivalents Net Investment _ ---------------------------------------------------------------- � 1964 $ 5,973,512 $ 34,656 1965 5,957,607 < 15,905> 1966 5,881,682 < 75,925> � 1967 5,973,534 < 88,149> 1968 5,737,974 < 55,560> 1969 5,590,671 <147,303> � 1970 5,496,346 < 94,325> 1971 5,678,400 182,054 1972 5,598,520 < 79,880> � 1973 5,414,356 <184,164> 1974 5,123,427 <290,929> 1975 4,963,475 <159,952> 1976 4,926,131 < 37,344> � 1977 4,777,766 <148,365>" 1978 4,662,249 <115,517> 1979 4,566,437 < 95,812> � 1980 4,577,218 10,781 1981 4,996,863 419,645 1982 5,519,359 522,496 1983 5,988,535 469,176 � 1984 6,367,734 379,199 ---------------------------------------------------------------- � Implicit Price Deflator Used for Constant Dollar Adjustments (000 omitted) � Page 62 � � � ,� -��.� � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC January 22, 1986 � . GRAPH 16 REAL DOLLAR NET INVESTMENT 1949 THROOGH 1984 � � 60 � 30 � � m. ��.m . � � °�� - � -300 � � -soo � � � � � m ti � m � � � � m � � ------- --- -------------------- ----------------------- --- GRAPH 1 illu trates net investment for the 25 year period 949 � through 1984. Recent net investment reverses a 15 year per od of tax ase e osion. ------- ----- --------------------------------------------- ---- � POLICY � 9. Non-R sidential Tax Base. The City shall make a sp cial effort o inc ease its Non-Residential tax base in order to minimiz the ax burden on City residents. � FINDING As a percentage of adjusted Estimated Market Value, the �� percenta e of residential property peaked in 1980 at � Page 63 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � � January 22, 1986 approximately 80 per cent. Since that time it has trended � downward slightly to approximately 75 per cent in 1986. Table 13 below shows the percentage of Estimated Market � Value represented by residential and Non-Residential properties during the 12 year period 1975 through 1986. ---------------------------------------------------------------- � TABLE 14 PROPERTY BY CLASSIFICATION � Percentage Percentage _________Year___ __Residential__________Non_Residential_ � 1975 75.32 $ 24.78 � - 1976 75.60 $ 24.40 $ � 1977 77.18 $ 22.82 � 1978 78.42 $ 21. 58 $ 1979 79.47 $ 20.53 $ � 1980 79.63 $ 20.38 $ 1981 77 .52 $ 22.48 � 1982 77.91 $ 22.09 $ � 1983 77.12 $ ` 22.88 � � 1984 74.06 � 25.94 � 1985 74.93 $ 25.07 $ ---------1986-----------------74_91-$--------------25_04_� � Measured as percentage of adjusted Estimated Market Value, the proportion of the tax base. represented by single � family housing also declined from 1980 through 1984. In 1985 there was a one per cent increase and in 1986 there was a 0.3 per cent decrease. There is evidence, therefore, of a trend � toward an increasing proportion of Non-Residential values and a compensating and generally decreasing proportion of residential values. COMMISSION'S RECOMMENDATION FOR CHANGE � NO CHANGE RECOMMENDED � � Page 64 � � � � �'�%�3/s" � THE FINDINGS AND RECOMMENDATIONS of the ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � January 22, 1986 �, , GRAPH 17 PROPERTIES BY CLASSIFICATION � 1975 THROUGH 1984 � � Industr I � � Comme cial � klulti F � Single m � � L � � - v L � � - � 4 � 2 � � . � ti � � � � � � � � rn rn rn rn rn rn rn a� a� � � ------- ---- ------------------------------------ ---- GRAPH 1 illu trates the trend toward an increasing level o � non-res denti 1 property in the City. ------- ----- --------------------------------------------- ---- POLICY � 10. Main enance of Existing Tax Base. In order to mai tain its exi ting ax base the City shall discourage the use of � acquisi ion a a redevelopment tool. FINDINGS � Acqu sition. As has been described above, acquisi ion of real estat property, relocation of owners and tenants, clearan e and improvement of the site and the subsequent sal of � � Page 65 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 this im roved land was the primary means of stimulating � P redevelopment and reinvestment under the urban renewal program. During the period 1964 through 1983, a net total of � approximately $112 million was spent by the HRA and PED on acquisition activities. Of this total, all but approximately $3 million was spent prior to 1978. � Table 15 below shows the level of net expenditures for acquisition by the HRA and PED from 1964 through 1983. ---------------------------------------------------------------- � TABLE 15 NET ACQUISITION COSTS . � HRA/PED Year Net Acquisition Expenditures - ---------------------------------------------------------------- � 1964 $ 7,362 1965 $ 7,870 � 1966 $ 3,970 1967 $ 4,713 1968 $ 6,942 � 1969 $ 6,942 1970 $ 9,377 1971 $ 9,377 1972 $12,911 � 1973 $12,911 1974 $ 8,217 1975 $ 8,217 � 1976 $ 4,034 1977 $ 1,798 1978 $ 3,679 1979 $ 0 � 1980 $ 1,238 1981 $ 955 1982 <$ 620> � 1983 $ 1,858 ---------------------------------------------------------------- (000 omitted) In keeping with the City's overall Economic Development � strategy, neither the HRA nor the PED has issued general � Page 66 � � � ��'/.�� THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC January 22, 1986 � obliga iori b nds for the purpose of major land acquisition since . 1979. � The Port does have an ongoing program of acquisit'on of proper ies s itable for development as industrial parks. � Typica ly, t ese parks have been developed on surplus rail ad proper ies a quired by the Port for industrial development activities. The Port has acquired these properties, provid d for inf astr cture improvements and then offered them for s le � or leas to 'ndustrial clients. However, the Port has not relied pon eneral obliqation bonding for recent industria park ac isi ions. In 1974, the Port issued $5.6 million o � general obli tion bonds which were used primarily for the acquisi ion d improvement of the Midway Industrial Park. Since t at ti e, the Port has developed Energy Park and is present y dev loping Empire Builder Industrial Park without � using g neral obligation bonds for acquisition or site improve ents. The Commission sees no inconsistency between City policy nd th Port's policy of planned and orderly acquisi ion � of indu trial park development sites financed with Indirect Investm nts. The ecent activities of both the PED and the Port seem � to be c nsist nt with current policy. The total level of acquisi ion h s been reduced substantially and the funding f acquisi ion a tivities has shifted away from Direct Expendi res � toward I dire t Investments. As a result, taxpayers only r ely incur th ris s associated with the acquisition of real pro rty in antic'pati n of speculative development activities. � OMMISSION'S RECOMMENDATION FOR CHANGE NO C NGE RECOMMENDED , A STRONG, DIVERSIFIED LOCAL ECONOMY � � aintain and Expand Job Opportunities POLICY � l. J b Opportunities. The City shall seek to incr ase the numb r of ob opportunities available in the City and attempt o mai tain a 25 per cent share of inetropolitan regi nal � employme t. � - Page 67 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 � GRAPH 18 ,� � AVERAGE ANNUAL EMPLOYMENT METROPOLITAN REGION � 1220 1170 � 1120 � � U � a 1070 � O � - � 1020 � � . � �'.: �' � 970 ' � ti �: : `�, •. � � . 920 �. \, �. � �\~ \ � � � � � � � 870 � � � 1976 1977 1978 1979 1984 1981 1982 1983 1984 -----------------------=---------------------------------------- � GRAPH 18 illustrates the level of average annual employment in the Twin Cities Metropolitan Area during the years 1976 through � 1984. ---------------------------------------------------------------- During a period characterized by economic instability � and economic stress, the City has been successful in maintaining its job base in numerical terms, but its policy goal of , maintaining a 25 per cent share of inetropolitan area employment � is both unrealistic and unattainable. Data examined by the Commission indicates that the City' s share of inetropolitan area employment is decreasing and will likely continue to decrease � for the foreseeable future. In order to measure performance in terms of this policy goal it was necessary to determine two reasonably comparable � tabulations of average employment levels for the City and the Page 68 � � � �� -�� ..,r � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � Metrop litan region. A series from 1976 through 1984 deem d "consi tent or purposes of analysis" was provided by the � Metrop litan Council. The City has maintained a series tabula ion o "covered employment" in the City since mid-1 78. As result of reporting procedures by employers, the � City's Cover d Employment series includes a number of jobs actual y loc ted at the 3M Research Center in the adjoinin suburb n co unity of Maplewood. For this reason, the Cit 's � Covere Empl yment tabulation somewhat overstates the leve of emplo ent w thin the City limits. The City has wisely ch sen not to attem t to "adjust-out" the jobs located at the 3M � Resear Cen er. There are simply too many variables_ which would h ve t be taken into account in order to make such a adjustm nt a curately. At the same time, the term "Covered Employm nt" efers to those jobs covered by unemployment - � insuran e an these jobs are estimated to represent 97 per ent of all 'obs. Taking these two factors into account, it is he Commiss 'on's pinion that the City's tabulation of Covered � Employm nt re resents a close approximation of the number o jobs lo ated ithin the City and is appropriate for analyti al purpose . � Tabl 16 below shows the average level of Covered Employm nt by quarters as well as the average for the year s reporte by t e City from 1979 through year-end 1984. � -�----- ----- --------------------------------------------- ---- TABLE 16 AVERAGE EMPLOYMENT � _ CITY OF ST. PAUL First Second Third Fourth Annual � Year Quarter Quarter __Quarter__Quarter Average 1979 187,144 190,922 190,907 194,390 190,841 � 1980 90,190 191,173 188,923 191,857 190,536 1981 87,418 189,442 188,714 188,893 188,617 1982 83,076 184,853 181,962 180,172 182,516 1983 76,077 179,803 181,743 183,813 180,359 � ____1984 _____ 80,012 184,918 185,516 188,184 184,658 --------------------------------------------- --- � � Page 69 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . GRAPH 19 � AVERAGE EMPLOYMENT CITY OF ST. PAUL � �g� ' --+-- Coverad Employment �— A�erage Emplayment � 191 � �� . � 136 � vf - _ � � 0 � 181 - � 176 � � 171 NMltt'rNr7ct�nll7�r[�Jr+'M�r-c•Jt�ad'r[�!r)�1't-NMctr �>U[700�3G0��7C7C7G��t7t_lOC7�OC70O�0000 • � GQ0J4T.7�.7T670?Q10Cy00r�--�rCVCJNCV�M7►'�r'1 .'f'd'�Fd'�S? I'^�P--I�f�1�f�RC0�0aJC�?a�aOrAa�'J�OaJop�cOoUR�aJo0a9flOQ7aU ns t7i Q�O�Di O�O�O��i�3a G*�4�O��i ch O�Ch 0�O�O'i Of C�O�O��i O�C�Q� rre—rrc�r�rre--r�rrrrr�—r�r-r�a�-rrr ' �� GRAPH 19 illustrates the quarterly level of average employment within the City during the period 1979 through 1985 � ---------------------------------------------------------------- As can be seen from Graph 19 and Table 16, the level of � employment in the City is sensitive to the business cycle. During this period of time, the national economy experienced historically high interest rates and the most severe recession � since the Depression of 1929. Average annual employment fell dramatically during the recession years of 1982 and 1983 and began to recover in 1984. Average annual Covered Employment � during this six year period was 186 thousand, an amount approximately equal to the 1984 average employment level of 185 thousand. � Page 70 � , � � �� '�� THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 �` Whe the Metropolitan Council's employment series is compar wit the City's Covered Employment tabulation, it 's � apparen tha the City's goal of maintaining a 25 per cent hare of inetr poli an area employment is not attainable. Table 1 below s ows he City's Covered Employment expressed as a percent ge o metropolitan area employment for the years 19 9 � through 1984. ------- ----- --------------------------------------------- ---- � TABLE 17 CITY EMPLOYMENT A A PERCENTAGE OF METROPOLITAN EMPLOYMENT � City as a Metro Area City Covered Percent ge Year Employment Employment of Metr - � ------- ----- ---------------------------------------------- --- 1979 1,094,000 190,841 17.44$ 1980 1,110,400 190,536 17.16� 1981 1,109,000 188,617 17.01� � 1982 1,084,000 182,516 16.84$ _ 1983 1,097,900 180,359 16.43$ 1984 1,172,100 184,658 15.75$ � -------- ----- -------------------------------=------------- --- The M tropolitan Council forecasts a very level of employme t gr th within St. Paul during the next 15 years. � Table 18 below shows Metropolitan Council estimates and forecast of C ty employment for the years 1970, 1980, 1985, 1990 and 2000: � -------------- ---------------------------------------------- -- TABLE 18 � EMPLOYMENT ESTIMATES METROPOLITAN COUNCIL ar Estimates � --------- ----- --------------------------------------------- -- 1 70 186,759 1 80 187,000 � 1 85 188,500 1 90 190,000 2 00 193,000 --------- ----- --------------------------------------------- -- � � Page 71 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 � GRAPH 20 � CITY COVERED EMPLOYMENT AS A PERCENTAGE OF METROPOLITAN EMPLOYMENT � �S} � 95 � � ��`.. � � 4� `��`-�`��. � � �` � > �,4 U � �• � � �.�,ti,1. �\� �`. �, `��. � � s_ 1c� �� t , � c� �� \�� :��``�� - , � \ `� � �` \��4 \ � ��\ ��\�� . `ti`t,\, ` � ��. \` '� �4�.,�� `�� .. rJ �\ ��, • � �4; �ti � ��•� �� ,�� \ �� \ `� �\ �1 , `\ ` � �� .� �;� �� . � ��. ,��: �`�` �.;'\� -y.�� `,�\� `''=`�� -.�,� � � -. '`�`., � c� `� 1979 1980 '1981 1�82 19$3 19$� � ---------------------------------------------------------------- GRAPH 20 illustrates the City's declining percentage of � Metropolitan area employment. - ---------------------------------------------------------------- The Metropolitan Council's forecasts may provide a more � reasonable basis for setting the City's employment goal,. Table 19 below shows the City's Average Annual Covered Employment as a � percentage of the Metropolitan Council's estimates during the years 1979 through 1984. COMMISSION' S RECOMMENDATION FOR CHANGE � Based on its analysis, the Commission recommends the . � Page 72 � � � ��-�� THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC January 22, 1986 �1 ------ --- -------------------------------------------- ---- TABLE 19 � CITY COVERED EMPLOYMENT AS A PERCENTAGE OF METROPOLITAN COUNCIL ESTIMATES � Met Council City Estimates and Covered Year Forecasts Employment Per nt ------------ ---------------------------------------------- ---- � 1980 187,000 190,536 101. 9 1981 187,300 188,617 100. 0 1982 187,600 182,516 97. 9 � 1983 187;900 180,359 _ 95. 9 1984 188,200 188,184 99. 9 A raqe 187,600 186,255 99. 0 - � ------- ----- --------------------------------------------- ---- � followi g lan age as a replacement for existing City polic : 1. ob Opportunities. The City shall seek to inc ease the num er of job opportunities available in the City. The City � will at empt o achieve a goal whereby City Covered Employm nt will e al or exceed the level of employment projected for he City of St. P ul by the Metropolitan Council of the Twin Ci ies � Area. MINORITY REPORT � Alth ugh there was consensus on the Commission as changin the antitative measure appropriate to this polic , there w s dis greement on the policy's first sentence. For � reasons ident'cal to those offered in relation to the City' s Leverage Poli y, a minority of the Commission would prefer t change t e fi st sentence of this policy to read: � 1. ob Opportunities. The City shall seek to incr ase the numb r of job opportunities for City residents. � The r tionale for this minority report is identical to the Mino ity r port offered on Page 50 of this document. � The s ven members of the Commission endorsing this � Page 73 � � THE FZNDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 . � GRAPH 21 JOBS BY CLASSIFICATION � METROPOLITAN REGION �� Ma�ufacturing �~ � Servlces $0 � F.I.R.E. � � �. � Gonrtn.ictian � C � � 60 �� Uther U f i:. ! f N � � � .� 40 � � � . 20 � � � � � . � �� \ � � �. . ` � � 0 1978 1979 1984 1981 1982 1983 1984 � ---------------------------------------------------------------- GRAPH 21 shows the proportional distribution of jobs by � categories during the years 1978 through 1984 in the Metropolitan Twin Cities area. ---------------------------------------------------------------- � minority report include: Ms. Ackland, Ms. Davis, Mr. Dorgan, Mr. Drew, Mr. Empson, Ms. Pillow and Ms. Sonnen. � POLICIES Issues relating to the following three policies � generated considerable discussion among members of the Commission. � Page 74 � � � �''� � .�.� ��,'' � � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � 2. Equal Employment Opportunities. The City sha 1 mainta n its commitment to Affirmative Action principles a d � take t ose s eps necessary to assure that the City' s low-i come and mi ority residents share in the City's economic growth. � 3. Job Training and Job Placement Programs. The ity shall c ntin e to expand its involvement with job training nd job see inq rograms and should more closely integrate thes � activit'es w'th the City's Economic Development program. 4. ubsidy Allocation. Special consideratifln, � includi g pr ject subsidy allocations, should be given to proj.ect that will retain existing jobs or create new jobs within he Ci y. � - � FINDINGS � The ity provides assistance to commercial and industr al fi ms and businesses in order to achieve two pri ary goals. First the City seeks to increase its property tax ase and, se ond, he City seeks to increase the level of employ ent � within he Ci y. The Commiss�ion's Study indicates that increas'ng th tax base is a relatively direct and uncompli ted result f inc eased Economic Development activities. Incre ing � employm t in' the City is relatively more complicated. Give the fact that the City's overall level of employme t ha remained relatively stable over the past seve al � years an giv n the fact that the City has lost several majo employer dur ' g the same period of time, it is apparent tha the City s Ec omic Development program has created a � substant al nu ber of jobs. It is difficult to imagine, giv n the degr e of conomic instability during this period, that he City cou d hav maintained its job base without the substant al activity gener ted by its Economic Development program. � Durin the course of its Study, the Commission exam ned the type of j bs represented within the City's Covered � Employme t and compared this data with similar data for the Metropol'tan r gion. As a percentage of total employment in the v region, anufa turing jobs are declining slightly. In 1978, � manufact ring obs represented 23 per cent of all jobs in th � Page 75 � 1 � THE FINDINGS AND RECOMMENDATIONS of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 . r GRAPH 22 JOBS BY CLASSIFICATION � CITY OF ST. PAUL 100 �� Manufacturing � Services 8� � F.I.R.E. � � Co�struction . L- 64 � �-Other � N U � �. � � ti � - , � � ' � // � 40 �\ \ \ / .� � � � . �� o � . �� `�� : �� \ � \ ��: � � � \ : .� t 1978 1�79 1984 7g81 1982 1583 1984 � ---------------------------------------------------------------- GRAPH 22 shows the proportional distribution of jobs by � categories during the years 1978 through 1984 within the City of St. Paul. ---------------------------------------------------------------- � region, but in 1984 they represented 22 per cent of all jobs in the region. This decline was not evident in St. Paul. In the � City, manufacturing jobs remained relatively stable in terms of both total numbers and as a percentage of jobs available. The Port Authority's concentration on providing assistance to � manufacturing firms would seem to be effective. By providing assistance to a large number of small firms, the City appears to - have offset the loss of some major manufacturing facilities. � Page 76 � � i �F'�,�1'3/.� � THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � �he �development of real estate which produces new and/or expan ed industrial or commercial facilities does n t -- ' � in and of it elf -- generate additional jobs, however. Ra er, this d elop ent produces the potential for the creation of additi al j bs. A new, modernized plant or facility may � produce addi ional jobs through increased productivity or through incr ased production. In order for additional perm nent jobs to be c eated, the firm must increase its sales volume its product'vity r both. A new plant or facility may help to � enable fir to create jobs, but a new facility does not guarant e job creation. Data presented to the Commission relativ to E ergy Park seems to indicate that new faciliti s do � create ew jo s in a reasonably short period of time.. Stil , it seems a paren that job creation is actually the result of combina ion o factors; some of which are related to the constru tion r expansion of a plant or facility and some o - � which a e not The ity does not treat job opportunities solely a an � indirec outc me of its Economic Development activities. T City als mai tains a Job Training and Job Placement office within i s P1 nning and Economic Development Department. Th' s office w rks irectly with unemployed and under-employed Cit � resident in der to assist them find permanent full-time jobs. A thou the activities of this office were considere outside f th Commission's Scope of Study, the Commission d d � discuss he p sibility of expanding the Job Training and Jo Placemen offi e and the Commission does recommend that addition 1 res urces be made available for proqrams and incentiv s enc uraging the creation of additional job � opportun ties or economically disadvantaged City residents. Targe ing new jobs directly to City residents requi ing � jobs is comp icated process. The Commission reviewed data that ind'cated that the City's unemployment rate is consiste tly lower th n the national rate of unemployment. Moreover, duri g the past two y ars, the City's unemployment rate has closely � approxima ed t e Metropo�itan area's unemployment rate. ltho gh the City's unemployment rate is relatively � low, ther are still a significant number of persons in the C'ty who are u able o find jobs. During the recession years of 1 82 and 1983 ome 1 ,000 persons, on the average, were unemployed in � the City. Duri g years of less economic instability, � Page 77 � ! THE FINDINGS AND RECOMMENDATIONS � of the �ITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 • GRAPH 23 � UNEMPLOYMENT RATES REGION, CITY, NATION � 12 � t 5MS4 � —9— City —se— Natian 9 . � � � ti � U - � 6 � � -,�,..��-�,.�- - 3 , � � 0 N �'7d � tJr') cF � Nh7ct NM � -- �y nc �h -- N �F rlN7 •t- ^ � 0000001700000 � 0000 � 00 .� � C1000 L� O 0.7 � Q� 47) (Jt Cn l7) C� Q C� � � r a— r C� C� C\� C•� !� Y�} M 1 M�) c�' 'd' c}' � I[') 1`� RI`� h.. l� h� l"� 07m0] 6'3 � d00Q00IX7 W 90G4G] dON GO {ti3000� OD � � Q Y � lTl � O 1 Qt � � � 61 Q 1 � 61 � OI � O? O 1 Q� G"1 O) +J? Csl O 1 � Q I Year and Quarter � � ---------------------------------------------------------------- GRAPH 23 shows the unemployment rates for the Standard � Metropolitan Statistic Area, the City and the nation. ---------------------------------------------------------------- v a are unem lo ed in � approximately 7,500 persons, on the a er ge, p y the City. Moreover, unemployment rates for racial minority groups is significantly higher than the unemployment rate for � Caucasians. According to the 1980 Census, the then current unemployment rates for various racial groups were as follows: White Black Indian Asian Hispanic ! ------------------------------------------------ 4.09$ 12.70� 19.10� 6.39$ 11.29$ � Page 78 � . � � ��-,G�I.5' � . THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � . Un ployment rates for women were lower than thos for � men in all r cial groups, but the Census data also indicat s that w men e likely to earn less money and are more like y to work p rt ti e than are men. Unemployment rates for minor ty women re al o higher than for white women. � In ddition to unemployment rates, the Commission also f ound hat: � -- emand for jobs by City residents is increasin c�espit the act that the population is decreasing. The a erage workfo ce, a measure of all those City residents either ha ing � jobs o seek ng them, rose from approximately 141,OOO� in 1 78 to approx matel 161,000 in 1984. -- eal income in the City is decreasing. Median � Family annua income in the City increased from approximat ly $21 th usand 1979 in to approximately $26 thousand in 1984 When a juste for inflation, however, real median family i come � expres ed in 1984 dollars decreased from approximately $30 thousa d in 979 to approximately $26 thousand in 1984. � -- mployment is growing at a more rapid rate in suburb n co unities than in the City. Employment in subu ban Ramsey, Dako a and Washington counties increased from slig tly more t an 10 ,000 in 1970 to approximately 200,000 in 1985. � In ight of these facts there was consensus among members of t e Commission that the City could and should d more � to ass"st ec nomically disadvantaged residents find employ nt. There s si nificant disagreement, however, on just exactl how the Ci sho ld go about doing so. � COMMISSION RECOMMENDATIONS FOR CHANGE AMENDMENTS TO EXISTING POLICIES � POLICY � 2. qual Employment Opportunities. The City shal maintai its ommitment to Affirmative Action principles an take th se s ps necessary to assure that the City' s low-in ome and min rity esidents share in the City's economic growth. � � Page 79 ' � , THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 • GRAPH 24 � WORRFORCE CITY OF ST. PAUL � 161 � 15fi � � � � � 151 � v a� � o - �' 146 � � • 141 � � � \.. • � ` �136 1978 1979 1580 1981 1982 1983 1984 1 ----------------------------g--------y�------------------------- GRAPH 24 illustrates the fact that the number of City residents � seeking employment is growin steadil ---------------------------------------------------------------- � The Commission proposes that the following language be added to the above policy: � It is the goal of the City, through its Economic Development activities, to achieve equal job opportunities for all of its residents. Toward this goal, the City will strive to � achieve a rate of employment among women, racial minorities and handicapped persons that is equal to the rate of employment for that of its population as a whole. � Page 80 � � ' �.� .�� ! THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � . POLICY 4. Subsidy Allocation. Special consideration, � includ ng pr ject subsidy allocations, should be given to projec s tha wil� retain existing jobs or create new jobs within the C ty. �- � The Commission proposes the following language as a substi ute f r the existing policy language: � 4. Subsidy Allocation. Consideration, including project subs dy allocation, should be given to projects whi h will re ain xisting jobs or create new jobs for City resid nts � and spe ial onsideration should be given to those prajects or program whi h create job opportunities targeted for econo�ni ally isadvantaged residents of the City. - � ADDITIONAL PROPOSED POLICIES AF IRMATIVE ACTION, FIRST SOURCE EMPLOYMENT � AND SET ASIDE REQUIREMENTS COMMISSION' S RECOMMENDATION � The ollowin olic is ro osed as an additional g P Y P P policy o sup lement existing equal opportunity and job tra'ning � and job place ent policies: In o der to more closely integrate its Economic � Develop nt p ograms with its equal employment, equal opportun'ty a d job training and job placement activities, t e City wil re ire that businesses, developers and/or firms , associat d wi h a project valued in excess of $1,000,000 and receivin the following forms of assistance: . Job training funds, ' . Tax Increment assistance, ' • . Urban Development Action Grant (UDAG) fund , . Infrastructure improvements paid for from ax levy fun s or eneral obligation bond proceeds, or 1 . � Page 81 ' � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES , � January 22, 1986 . � e. Land write-downs, or f. Tax abatements, � Shall agree to: 1. Demonstrate compliance with a carefully considered � and reasonably constructed affirmative action policy and plan, 2. Execute, with the appropriate City officials, a � carefully considered and reasonably constructed first source employment aqreement, and 3. Comply with the City' s set-aside requirements for � minority, women and small business enterprises. PROVIDED THAT it is further understood that the above � requirements shall not apply to: Projects involving the use of master lease financing, � projects involved in the construction or rehabilitation of low and moderate income housing, nor do these requirements apply to the employment of construction workers on the projects involved. � MINORITY REPORT As a replacement for the above recommendation, the � Commission's minority report proposes the following language: In order to more closely integrate its Economic � Development programs with its equal employment, equal opportunity and job training and job placement activities, the City will require that developers and/or firms receiving financial and/or financing assistance associated with a � � commercial or industrial project valued in excess of $500,000 shall agree to: l. Demonstrate compliance with a carefully considered � and reasonably constructed affirmative action policy and plan, 2. Execute, with appropriate City officials, a � carefully considered and reasonably constructed binding first source employment agreement, and 3. Comply with the City' s set-aside requirements for , minority, women and small business enterprises. Page 82 � . r ✓ _ ,�/' °�' r 1 �� THE FINDINGS AND RECOMMENDATIONS of the , ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � ' GRAPH 25 AVERAGE NUMBER OF UNEMPLOYED PERSONS � CITY OF ST. PAUL , ' 0 � • 9 � � � C � N - � � O t H �. � \ � � �' � 4 � 1 8 1979 1980 1981 1882 1983 1984 ------- ----- --------------------------------------------- ---- � GRAPH 2 illu trates the fact that, despite relatively low unemplo ment ates, the average number of unemployed City residen s rem ins substantial. , ------- ----- ---------------------------------------------- --- , RATIONALE FOR THIS MINORITY REPORT Ther are several reasons offered in support of the minority repor . � 1. I numerous instances throughout the Commission s report t e Co ission has acknowledged the need for the City to � make a s ecial effort to meet the needs of its economically disadvan aged itizens. The Commission acknowledges this ne d � Page 83 � � ' THE FINDINGS A1QD RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 in this r� ort's sections on the Cit 's Economic Develo ment � P Y P Goal, the City's Economic Development Objectives, and the City' s Fundamental Economic Development Policies. The minority report � is thus consistent with the rest of this report and implements its policy recommendations. 2. The language adopted by the Commission' s majority , would include affirmative action, first source or set-aside requirements for those projects receiving six types of direct cost assistance but excludes tax-exempt revenue bond financing, � grants other than UDAG's, tax levies, taxable revenue bonds and any other direct or indirect assistance. This is inconsistent with an increased emphasis� on meeting the needs of economically � disadvantaged citizens. 3. Through several months of deliberation, the � Commission was qiven no firm indication that the City's Economic � Development program has been successful in providing employment to City residents, particularly disadvantaged residents. As noted in the Report, minority unemployment continues at a level � three to five times that of the majority population. It is necessary for the City to address this very serious and pressing social issue. . � 4. There is a need for the City to effectively target its Economic Development programs to meet the needs of its economically disadvantaged citizens. Requiring that all major � development projects adhere to affirmative action standards, execute binding first source agreements and comply with minority and small business set-aside requirements will insure that the � City' s Economic Development program is targeted to problems which are unique and specific to the City. 5. Establishing these requirements is the only way • � that the City can guarantee that City residents will in fact be employed in jobs created as a result of assistance provided by the City's Economic Development programs. � 6. These requirements are not a layer of regulation which will discourage firms or developers from doing business in the City. Affirmative action is now a firmly established � practice throughout most of the nation's business community. A first source agreement, rather than being a burden, actually represents a resource for a business in that it provides a � Page 84 � � � ��-�.�j�� THE FINDINGS AND RECOMMENDATIONS of the , ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � • GRAPH 26 � UNEMPLOYMENT RATES BY RACIAL GROUPS � 1980 CENSUS DATA � 2� , � 15 � - 1� � - � \ � � 5 � � \ � � � 0 � ite Black Indion Asian 5panish � -------- ---- -------------------------------------P--y----- --- GRAPH 26 illu trates the fact that the rate of unem lo ment 's substant'ally igher among racial minorities than among whit s. -------- ---- --------------------------------------------- --- , referral servi e through which firms are provided with quali ied � applican s for jobs which they have available. Minority and small bu iness set-aside requirements are already mandated f r local fi ms do ng business with the City and have not proven difficul . Th s, these three requirements, which can have a , great im act o meeting employment needs of minority and oth r disadvan aged itizens, present no great barrier to encourag'ng firms to do bu iness in the City and, in fact, may provide a � positive incen ive to do so. 1 Page 85 � , THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 • GRAPH 27 � PER CENT OF PERSONS NOT IN THE LABOR FORCE 1980 CENSUS DATA � � 60 � 50 � 40 � 34 - � �\ � 20 � � 10 � � � � � D Y4'hite Black Indlan Asion Spanish � ---------------------------------------------------------------- � GRAPH 27 illustrates the fact that while unemployment rates are higher among racial minorities than among whites, the propensity to find employment as reflected by the number of percentage of persons not in the labor force is essentially equal among all � racial categories . ---------------------------------------------------------------- 7. Finall the minorit re ort's recommendation � Y• Y P should be adopted because it provides a firm sense of purpose and direction to the City's Economic Development program. The , Commission addressed the issue of the City' s role in Economic Development. It should also raise the question of the role of the City's Economic Development program in addressing the City's ' Page 86 � � e�- .f�/�� THE FINDINGS AND RECOMMENDATIONS � of the ITIZ S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 � � major socia problems. The recommendations of the minorit ' report demo strates one way in which the City can direct i s Econo 'c De elopment efforts toward some of its most press 'ng social issu s. � Th's minority report is endorsed by seven members of the Co iss ' n including: Ms. Ackland, Ms. Davis, Mr. Dre , Mr. Dorgan Mr. pson, Ms. Pillow and Ms. Sonnen. , COMMISSION RE�OMMENDATION REATION OF A 30B CREATION INVESTMENT FUND � The Commission proposes the followinq as an addit onal policy relat ng to job training and job placement activiti s and - ' pr ogr a s: The City should establish a Job Creation Investme t , Fund f r the purpose of providing incentives for the creat'on of emplo ent o portunities for economically disadvantaged citize s. � In stablishing this Fund, it is important to acknowl dge he experimental nature of this program and the City's eed o develop a program and process that allows fo ' trial a d er or with several specific initiatives in order o determi e fr among several alternatives the most effectiv proqram possi le. � Duri g its first two years of operation, the City should und t is program from appropriate sources at the le el of appr ximat ly $250,000 for each year. tMINORITY REPORT The ollowing language is proposed as a replacemen for � the abo e rec mmendation of the Commission: The ity shall establish a Job Creation Investment Fund , for the purpo e of providing incentives for the creation of employm nt op ortunities for economically disadvantaged citizen . In order to provide initial funding for this pro am, the Cit shou d consider the use of tax levy funds, general � obligati n bo d proceeds, UDAG loan repayments, foundation � Page 87 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 , GRAPH 28 � • MEDIAN REAL FAMILY INCOME ADJUSTED BY CONSUMER PRICE INDEX , 41 • —i-- Saint Paul ° ' � Metro Region � 36 � v � v � u� - � 0 F�-- 3� - � '� rn T 2v • � 21 �' p r N � d lC! �A 1`� QD � O � N � 4 1'� I'� I� I� I� 1� ti t� R I� a0 tA �J a7 aV O� O1 O) O� O� O> O� � O� O� O� � ?� O� O� r f� f� r r T r r r r T r r r T �� GRAPH 28 illustrates the fact that median family income when measured in real dollar terms has been decl•ining during the past � several years. . ---------------------------------------------------------------- , � grants, corporate contributions and any other appropriate source of funds. RATIONALE FOR THIS MINORITY REPORT � The Minority Report's recommendation is offered for two , primary reasons: � Page 88 � � , �Gr�/✓� � THE FINDINGS AND RECOMMENDATIONS of the ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � January 22, 1986 � 1. The language contained in the majority's recomm ndati n refers to the "experimental nature of this progr and he City's need to develop a program and proce s � that a lows or trial and error with several specific initia ives n order to determine from among several altern tives the most effective program possible. " This positi n doe not acknawledge the fact that much work has ' alread been done in the field of job training and job placem nt, a d that there is no need for the City to exper 'ment furth . Pr grams which provide training and subsidize th initia cost of employing economically disadvantaged indiv' uals ,. have p oven ffective and further experimentation is unnece sary. � 2. The Commission's majority recommendation reco ends a speci ic ount of $250,000 and a two year period of operati n. t is important to identify possible sources of - , funds f r su a program. Further, there is no need to hav a $250,00 mini um for the program. � In c nclusion, the City has already done much thro gh its emp oymen and training office in the field of employme t for the disad antaged. There is no need for further experim ntati n. There are also as yet untapped sources of � funds w ich m y be utilized, and placing a cap of $250,000 n the pro ram u reasonably restricts the City in developing a larger otent ally more effective program. , � COMMISSION RECOMMENDATION EXTENSION OF THE PORT AUTHORITY'S � GEOGRAPHIC BOUNDARIES OF OPERATION The ommission proposes the following language for � consider tion by City policymakers: In 1 'ght of the fact that job opportunities are gro ing at a fas er r te in suburban communities than they are withi � the boun arie of the City and, in light of the fact that it is increasi gly ifficult to assemble large parcels of land appropri te f major industrial development activities with n � the City limi , consideration should be given to seeking legislat ve ch nge which would allow the Port Authority to finance rojec s located in adjoining suburban communities. , Page 89 , � , THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 , � GRAPH 29 � � EMPLOYMENT TRENDS METROPOLITAN AREA SUBORBAN COMMUNITIES ' 1U40 � 800 � � , -� Q 600 � � - a - �F�— 400 200 � 0 � r�'� ti o�o a�o a`�i o�i o rn rn a► rn rn rn o Met Council Data 8c Forecast� � ---------------------------------------------------------------- � GRAPH 29 illustrates the relatively rapid growth of employment in the suburban communities of the metropolitan area. � ----------------------------------------------------------------- Projects undertaken outside of the City of St. Paul � should be structured in such a fashion that maximizes the City' s ability to provide jobs for its citizens. ' ADDITIONAL POLICIES � A STRONG, DIVERSIFIED LOCAL ECONOMY � Assist, Retain and Attract Businesses City policies intended to encourage the retention or ' Page 90 , � , � �/�/�� ` THE FINDINGS AND RECOMMENDATIONS of the ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � January 22, 1986 , attrac ion o commercial and industrial development, rehabi itati n or expansion are considered under three catego ies: Neighborhood and Retail areas, the Downtown a ea � and la qe-sc le commercial and industrial development. FINDINGS ,' In rder to analyze the performance of the City' s Econom'c Dev lopment program in terms of neighborhood, dow town and la ge co ercial and industrial development, inventori of � financ' g tr nsactions were obtained from the Port and the ED. These i vent ries were then structured in order to be able o determi e wh'ch of these transactions were located in the � downtow are , which of them were commercial and industrial in nature nd w ich of them were located outside of the downt n area. (Thes inventories may be found in Appendix B. ) � The esults of this analysis shows that the City's Economi Deve opment activities are spread widely throughou the City. lthou ri downtown development represents an importan � compone t. of he City's Economic Development program, the majorit of E onomic Development activities have been locat d outside of th downtown area -- in City neighborhoods or in � outlyin indu trial parks. � Duri g the period 1964 through 1984, the City's Economi Deve opment agencies issued approximately $1 billi n of � revenue bonds in order to provide assistance to about 300 commerc'al an industrial development projects. These proj ts represe t an nvestment of nearly $1.5 billion. Approximat ly � 75 per c nt o this investment was associated with projects initiate dur ng the six year period 1979 through 1984. Tab e 21 below show the amount of revenue bond related investment and financin for the period 1964 through 1984 for commercial an � industri 1 pu oses. Tabl 22 below shows how these investments were � distribu ed th oughout the City on the basis of planning district . De pite the City's emphasis on downtown developm nt, it is no ewort y that only 36 per cent of these investments ere located n pla ning district 17, the downtown planning distr ct. ' The a erage value of of these projects was $5 milli n for thos fina ced by the Port and $6.2 for those financed b � PED The e pro ects ranged in value from $2,000 to Page 91 , � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION, ON BONDING AND FINANCING PRACTICES , January 22, 1986 $100 million. The average Port bond issue was $1.4 million and , the average PED bond issue was $6.2 million. These average � values are skewed, however, by several very large projects and � project financings. The median Port Authority project receiving financing assistance was $1.4 million. The median PED project was $1.5 million. Based on this information, it is the opinion of the � ---------------------------------------------------------------- TABLE 20 � COMMERCIAL AND INDUSTRIAL DEVELOPMENT 1964 THROUGH 1984 Percentage of , Total Revenue Bond Total _ Investment Financed Investment � Year Amount Amount During Period ---------------------------------------------------------------- 1964 $ 1,415 $ 1,415 0.10$ 1965 1,260 450 0.09$ � 1966 1,900 0 0.13$ 1967 6,225 3,115 0.42$ 1968 96,950 16,135 6.57$ � 1969 24,830 2,820 1.68$ 1970 13,585 8,325 0.92� 1971 15 0 0.00$ 1972 14,980 7,430 1.02� � 1973 1,610 560 0.11� 1974 4,545 4,520 0.31$ 1975 78,025 69,285 5.29$ � 1976 9,445 8,190 0.64� 1977 28,687 16,770 1.94� 1978 42,959 28,070 2.91$ � 1979 80,314 65,120 5.44$ 1980 119,148 46,235 8.08$ 1981 147,932 144,608 10.03$ 1982 251,288 141,265 17.04� � 1983 221,823 201,090 15.04$ 1984 328,080 204,690 22.24$ ----------------------------------------------------�----------- Totals 1,475,016 970,183 100 00$ , (000 Omitted) � Page 92 , � � c�'��' '�«..�r'!`..>r� � THE FINDINGS AND RECOMMENDATIONS of the ITIZ S COMMISSION ON BONDING AND FINANCING PRACTIC S , January 22, 1986 , Commis ion hat the City has achieved its goal of assistin a wide v iet of firms and businesses throughout the City. The Commis ion id recommend, however, several minor changes t the � City's poli 'es on neighborhood and downtown development. COMMISSION RECOMMENDATIONS FOR CHANGE � NEIGHBORHOOD DEVELOPMENT POLICY The Commission proposes that additional language e insert d int the City's neighborhood development policy. The � text b low s ts out the language proposed by the Commissio . ------ ----- --------------------------------------------- ' TABLE 21 DIST IBUTION OF COMMERCIAL/INDUSTRIAL INVESTMENT BY NEIGHBORHOOD PLANNING DISTRICTS ' 1964 THROUGH 1984 Percentage of ' Total Revenue Bond Total Plannin Investment Financed Investment Distric Amount Amount During Period ------- ----- --------------------�------------------------ ---- � 1 $ 144,378 �$ 50 045 9.79$ 2 2,600 2,600 0.18$ 3 194,650 73,880 13.20$ , 4 12,950 12,950 0.88$ 5 13,165 11,570 0.89$ 6 14,625 13,275 0.99$ , 7 110,170 110,130 7.47$ 8 12,192 4,892 0.83$ 9 96,060 85,275 6.51� 10 108,773 85,995 7. 37$ , 11 21,312 15,695 1.44$ 12 39,911 28,436 2.71� 13 53,697 51,945 3.64� � 14 475 475 0.03� 15 20,212 19,900 1.37$ 16 12,060 12,060 0.82$ 17 524,841 298,115 35.58� ' Citywide ___92_945________92,945_____________6_30$ -------- ----- ----- --- Tota s ,475,016 970,183 100.00� , (000 Omi ted) Page 93 . , ' � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES , January 22, 1986 The underlined lanquage represents additions to existing policy � language: 5. Neighborhood Development. The City shall continue � to relate its commercial development efforts with neighborhood revitalization efforts and shall continue to emphasize joint public-private revitalization programs which target City � improvements, financial and technical assistance to areas which offer the greatest potential for neighborhood revitalization. (See EDS, 2) . � In more specific terms: a. The City shall base its neighborhood , commercial development efforts on a recognition of the interdependence between neighborhood commercial areas and the - adjacent residential communities. Development shall minimize � adverse environmental and aesthetic impacts on adjacent properties and rovide bufferincr between residential and industrial land uses, adequate parking and safe transportation , access. b. The City shall develop a clear understanding of the respective roles play�d by the neighborhood commercial � areas, the major retail centers and the downtown and should encourage the complementary development of these sectors and strongly discourage proposed developments in one sector which ' would be in direct competition with another sector. c. The City shall continue to target its aid for neighborhood commercial revitalization to the most appropriate � areas. ' � ' ' Page 94 ' � 1 ��-'��` ' THE FINDINGS AND RECOMMENDATIONS of the ' ITIZ S COMMISSION ON BONDING AND FINANCING PRACTIC S January 22, 1986 ' . d. The City shall continue to give priorit to assis ing t e retention and expansion of existing small ' commer ial irms within the City. e. The City shall continue to encourage new commer ial evelopments in neighborhood commercial areas a d � � should esta lish specific assistance criteria in order to ecide which evel ment efforts to assist. , f. Develo ment shall be consistent with zon n ordina ces, he com rehensive lan, the housin lan, a 1 cable redeve o men lans and other similar ordinances resoluti ns, re la ions nd lans of the Cit . � - , COMMISSION RECOMMENDATIONS FOR CHANGE DOWNTOWN DEVELOPMENT POLICY The Commission proposes that additional language e � insert d int the City's downtown development policy. The text below ets o t the language proposed by the Commission. T underli ed 1 nguage represents additions to existing policy ' langua . 6. Downtown Development. The City shall endeavor to reestab ish he identity of downtown as a regional center o , _ employm nt, opping, investment, activity and residence. See EDS, 4 ) � . In re specific terms: a. The shall follow a strategy of a balanced ' growth n the downtown; maintaining its strongest sectors, reinfor ing t e growth of its emerging sectors and establis ing investo conf dence in its weakest sectors. ' b. The City shall continue to expand present efforts at de eloping a strong public support system in the d�antow enha cing the desirability of the downtown as a si e , for pri ate i vestment and the identity of the downtown as regiona cent r of activity. c. With reco nition of the value of historic , , Page 95 ' ' THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES January 22, 1986 ' GRAPH 30 , � CAPTURED TAX INCREMENT DOWNTOWN DEVELOPMENT DISTRICT ' 240000 , 150000 ' � � � c � 0 � 104000 o _ ~ 1 ' � �� , � � �. `� 0 1 1975 1976 1977 1978 1979 1980 1981 1382 1983 1984 Year Payabl� , ---------------------------------------------------------------- GRAPH 30 illustrates the growth of Captured Tax increments in , the Downtown Tax Increment district and provides an indication of the level of downtown development during recent years. ---------------------------------------------------------------- � preservation, the City' s downtown redevelopment efforts shall be directed into those geographic areas where the City has the � maximum opportunity to induce private development and where its investment will have the greatest return. d. The City shall continue to closely coordinate , its downtown development efforts with the downtown community and the private sector. ' Page 96 , ' ' �� i��S' � THE FINDINGS AND RECOMMENDATIONS of the ITIZ NS COMMISSION ON BONDING AND FINANCING PRACTIC S ' January 22, 1986 � IND TRIAL AND LARGE COMMERCIAL DEVELOPMENT POLICY 7. Industrial and Large Commercial Development. The ' City s all ontinue to assist industrial and commercial expans 'ons nder more explicit guidelines that ensure the ost effici nt u e of scarce commercial and industrial land as ell as Cit fin ncial resources. , In ore specific terms: ' a. The City shall give first priority to th expans on ne ds of established local firms; second priorit to the as istan e of local entrepreneurs in establishing new irms, and th rd pr ority to the attraction of out-of-area and � out-of state firms to the City. " b. The City shall continue to pursue polici s _ ' design d to id local firms experiencing difficulties in expand'ng. c. The City shall establish a set of guidel' es , with w ich t evaluate all proposed development and expansi n projec s req iring some form of public assistance or appro 1. , d. The City shall increase the� supply of lan availab e fo commercial and industrial expansion and develop ent aying special attention to the need for parcel of , more th n 10 cres in size. e. The City shall pursue institutional polic es and cha ges d signed to improve its role as a facilitator o ' commerc al an industrial expansion and development. ' COMMISSION'S RECOMMENDATION FOR CHANGE NO C NGE RECOMMENDED. � , , Page 97 ' � ' THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES January 22, 1986 ' GRAPH 31 � ' AGE OF HOUSING BY YEAR BUILT 1980 CENSUS DATA sc+oaa ' ' ��.�' Mlult Fc�m � � Snql Fam , 54Q00 4oaoa ' 3aooa � �ooao , ' . �� ,X k: �' t ' �000a `\"`� :��;kx: ;x�X �y �`\ 4 �� '� \� ��'r`�+�• }:;�?C?L{f•" � f'' ,; ;�, '''� •x � a 1939 1940's 9954's 15�0's 197L�'s ---------------------------------------------------------------- , GRAPH 31 illustrates two facts. First, nearly half of the City's housing was built before 1939. Second, the City' s goal of producing 10,000 housing units during the decade of the , 1980 's is reasonably realistic. ---------------------------------------------------------------- . ' A SAFE, ATTRACTIVE RESIDENTIAL LIVING ENVIRONMENT A Wide Variety of Housing Opportunities ' For Persons of All Economic Circumstances POLICY ' 1. Housing Supply. During the 1980 ' s, the City shall assist in the construction of 10,000 new housing units within ' the City and in so doing: Page 98 ' � t�' 8'",�.,�y,� /•�- ' �"' Z`ti , ,r�• ' THE FINDINGS AND RECOMMENDATIONS of the CITIZ NS COMMITTEE ON BONDING AND FINANCING PRACTIC S , January 22, 1986 ' GRAPH 32 VACANCY RATES CITY MULTI-FAMILY HOUSING � 5_4 � , .9 � c � . I " - a� 4 � � � - � � �.� �� . .9 � �� 4` .� 1 �`� , � . � . �� . \ , \ ' 3 4 `� 978 1979 1�50 1981 1��2 '1983 1934 , ------- ---- ---------------------------------------------- ---- GRAPH 3 ill strates the fact that vacancy rates for City housing remai low. This fact indicates that demand for , additio al h_ sing likely exists. _ , a. Expand both ownership and rental opportuni ies for Cit resi ents. ' b. Increase the variety of housing opportuni ies within eighb rhoods. , c. Increase rental and ownership opportuniti s for low r inc me households. , Page 99 ' , , THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES January 22, 1986 ' FINDINGS ' In establishing the goal of producing 10 ,000 new housing units during the 1980 's, the City described its goal as � "ambitious and perhaps unrealistic. " In order to determine whether or not this goal is realistic in terms of past performance, Census data was studied to determine past housing , production during recent decades. The Census tabulates housing units by year built and, at least for recent years, this data closely approximates the number of housing units built during a particular period of time. Table 23 below shows the number of ' housing units presently existing in the City by year built. --------------------------= ---------------------------------- TABLE 22 NUMBER OF CITY HOUSING UNITS BY YEAR BUILT 1980 CENSUS DATA ' Time Period Number of Units Percentage ---------------------------------------------------------------- Pre-1939 52,290 49. 22� ' 1940 - 1949 11,817 11.12� 1950 = 1959 15,865 14.95� ' 1960 - 1969 14,685 13.82$ 1970 1979 11,566 10.89� ---------------------------------------------------------------- Totals 106 223 _100_00�_ � --------------------------------�---------------- ------ Based on this data, a production goal of 10,000 housing ' units during the 1980 ' s is not unreasonable. Furthermore, the City assumed that during this time-frame approximately 1500 housing units would be lost from the housing stock for one reason or another. Therefore, in terms of net housing units, ' the City' s goal is actually 850 net units. Table 24 below shows the net increase of housing units for the years 1980 through 1984. ' Based on this data, the average net increase in housing units for this time period is 817 units per year. Therefore, ' the City is very close to achieving its goal of 850 net additional units per year. In order to achieve its housing production goals, the ' City has assisted developers through the issuance of a wide � � Page 100 � ' ' �� , THE FINDINGS AND RECOMMENDATIONS of the CITIZ NS COMMITTEE ON BONDING AND FINANCING PRACTICE , January 22, 1986 , ------ ---- ---------------------------------------------- ----- � TABLE 23 ANNUAL NET HOUSING PRODUCTION , 1978 THROUGH 1984 Single Family Multi Family Total , ____Ye r _____Units____________Units___________Units_ 19 8 323 593 916 19 9 233 443 676 , 19 0 183 439 622 19 1 221 668 889 19 2 122 472 594 ' 19 3 80 912 - 992 19 4 105 881 986 ------ ----- --------------------------------------------- ----- To als 1,267 4,408 5,675 � , Av ages 181 628 809 1980 ' s A erage 142 675 817 ------- ---- ---------------------------------------------- ---- , . , ------- ---- ---------------TABLE 24----------------------- ---- HOUSING REVENUE BOND ISSUES ' 1977 THROUGH 1984 Yea HRA/PED Port Authority Totals ' ----197 ----- ---------------------$- o $ 3,200 $ 3,200 197 14,000 2,120 16,120 197 108,411 330 108,741 ' 198 16,800 57,650 74,450 198 68,500 0 68,500 198 22,300 745 23,045 , 198 23,435 1,500 24,935 198 163,408 0 163,408 ------- ---- ---------------------------------------=----- --- Tot ls $ 420,054 $ 62,345 $ 482,399 � (000_omi_ted) ---- ---------------------------------------------- --- ' Page 101 , ' , THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES January 22, 1986 ' GRAPH 33 ' ' ANNUAL NET HOUSING PRODUCTION 1978 THROUGH 1984 1 fl00 ' Y `�� ;�� Single Family Housir�y • ,;C�i'= �}C�-: •,\, � Multi Family Housing , 8t70 �` ' 6c)0 ' � �M1 , � . 40d � � ' \ \ �. 244 \~ ' ` \ . �, � \� �. � \ �� . � � � o . � . --------197$ 1979 198� -198'1- 1982 19t33 1984 � , GRAPH 33 illustrates net housing production within the City for the seven year period 1978 through 1984 ' ---------------------------------------------------------------- variety of revenue bond programs intended to assist in the ' production of homeownership and rental housing units. Table 24 above shows the level of housing revenue bonds issued by the PED and Port during the period 1977 through 1984. ' COMMISSION' S RECOMMENDATION FOR CHANGE NO CHANGE RECOMMENDED. , . � Page 102 , ' ' � �-� -,��- , THE FINDINGS AND RECOMMENDATIONS of the CITIZ NS COMMITTEE ON BONDING AND FINANCING PRACTIC S t • January 22, 1986 ' GRAPH 34 NET HOUSING PRODUCTION BY HOUSING TYPES ' 1C0 , .� X�X. �x4: � Sinc�le Family Ho sing �� x,r , X � � � � Multi Family Hou ing x;.'�� \ , . � � `x` �` 80 � , 60 �� ' �� - � � - ' 40 � � �, - ' \\ `� . �, ti�ti ' za � �. . . � , �� . , � � �. 0 , ------- 1978 1979 1980 1981 1982 1983 193�1 ---- ---------------------------------------------- ---- GRAPH 3 ill strates the City' s increasing emphasis on ' multi_f mily ousing production. ---- --------------------------------------------- ---- ' POLICY 2. ousing Affordability. The City shall expand ' housing oppor unities in City neighborhoods for households f all inc me le els by: a. Retaining modest cost ownership opportuni ies ' by main ainin the existing supply as well as taking steps o that ne owne ship units are affordable to moderate income househo ds. ' Page 103 ' , ' THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES January 22, 1986 � GRAPH 35 ' MORTGAGE INTEREST RATES FOR EXISTING HOMES ROUNDED TO NEAREST QUARTER-PERCENT ' 20 � � 15 ' � �\ 1 D � ��• � , ti: `� \ ` � \ `� � � ~`, �� . - 5 � � �� \, � � ` �\ �� ' � \ \ � ` � � �`� ;� . �. `�� :� � � �� ,� � ` � 1 \ �� `;� � '� �- �� . 4 C� r N r) �# lt'� t� I� o� tn O � N � �t' ' 1� 1� t� Ir. h� I�. ti P- t� P� G] iA Oa 4t: a] � � � � � Ql 01 C1 � 41 J� �31 �3i Qi Cn ! ��_��__��_��_��_��__�_��__��___��___�_�� ' GRAPH 35 illustrates the fact that mortgage interest rates have moderated during recent years but remain higher than those of , the 1970 's. ---------------------------------------------------------------- b. Retaining modest cost rental housing ' opportunities by maintaining the existing supply as well as taking steps so that new rental units are affordable to moderate ' income households. c. Supporting continued expansion of a diversity ' of housing opportunities for middle and higher income households in those areas where displacement of lower income households is not a problem. - � ' Page 104 , ' � �'� :-��' ' THE FINDINGS AND RECOMMENDATIONS of the ' CITIZ NS COMMITTEE ON BONDING AND FINANCING PRACTIC S January 22, 1986 , _ GRAPH 36 AVERAGE MONTHLY MORTGAGE PAYMENT ' - EXP ESSED AS PERCENTAGE OF MEDIAN MONTHLY INCOME � \ � 4 ' ) � \ � \ �• : L � � � � � U � L � � � \ � _ ' 24 � � \ \ � �\ '� '� �� ` \�, `\ � � �`: \�� \ � \ �� \ �. ��. �Q � ` ,� \� ~ ` ~ \ \ \ \ �. � �. � � ' `\ \� � \�. � �\. �� \�� . � �' �;. ;ti �\ �,� �� ' \ \ � . ti . �' � �_ � � � 0 •, \� \�• ' � ti w � r`r'. rt°- r��- ti r�'- a� �o o�o' � m o� o, o� a, c� e� o� a,. e� rn va e, e� c� T r T !" t� T !"� � r • . T l"' r , �� GRAPH 6 ill strates the fact that a typical monthly mortg ge , paymen requ red slight�:y more than 30 per cent of typical monthl inco e in 1984. ------ ----- ---------�----------------------------------- ----- IFINDINGS ' Hig interest rates, rapidly rising real estate values and de linin real income combined to make housing afforda ' lity a major issu during recent years. Measured in a variety o ways, he Co ission found that housing costs now require a ' higher erce tage of income than they did in the early 1970 ' s, but tha hou ing has become relatively more affordable duri g the las two years as real estate values have stabilized an , interes rat s have declined. Still, housing affordability ' Page 105 1 ' THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES January 22, 1986 ' remains an important concern. ' Assuming an expenditure of 30 per cent of family income � for housing, housing projects and programs assisted by the City ' have been successful in producing new rental and homeownership housing units affordable to approximately half of the families in the City. The remaining half of the City' s residents cannot � generally afford new housing units and must depend upon the existing stock of housing for affordable housing. For this reason, the City wisely places a major emphasis on the preservation, maintenance and rehabilitation of its existing ' housing stock. � COMMISSION'S RECOMMENDATION FOR CHANGE _ , The Commission proposes the following as a revised policy on housing affordability. The underlined text below � represents additional language to existing City policy: ' 2. Housing Affordability. The City shall expand housing opportunities in City neighborhoods for households of ' all income levels by: a. Retaining modest cost ownership opportunities , by maintaining the existing s�upply as well as taking steps so ' that new ownership units are affordable to moderate income households. b. Retaining modest cost rental housing ' opportunities by maintaining the existing supply as well as taking steps so that new rental units are affordable to moderate ' income households. c. Supporting continued expansion of a diversity of housing opportunities for middle and higher income households ' in those areas where displacement of lower income households is not a problem. d. Limiting financial or financing assistance in ' support of luxury housing unless there is a direct and demonstrable benefit for low and moderate income housing. e. Measuring and reporting income in the ' following manner. In all cases where income is computed as a ' Page 106 ' ' r�s�S� <� �� /. � .f' t� �' ,ac1�^tif ' � THE FINDINGS AND RECOMMENDATIONS of the � CITIZ NS COMMITTEE ON BONDING AND FINANCING PRACTIC S January 22, 1986 � ercen a e f SMSA median income, the Cit shall retain it use for u ose of re ional, state and federal ro rams. In � additi n, t Cit Council shall annuall receive a re ort calcul tin he number of units assisted usin St. Paul me ian income fi ur s. ' POLICIES 3. Lower Income Housing. In order to maintain a � adequa e sup ly of housing affordable to lower income househ lds, he City will take those steps necessary to: ' a. Save and improve the existing suppl� of 1 w cost re tal using units. b. Increase the supply of low cost rental un ts. - � c. Save and increase the supply of low incom homeown rship units. 1 d. Increase the opportunities for low income people o liv in neighborhoods throughout the City. � 4. ousing Assistance. The City shall take those steps ne essa in order to ensure: � . That additional housing assistance is made availabl to m et the needs of lower income households. � . That housing assistance available to the C'ty is utili ed ef ectively. � . That housing assistance be utilized in ord to levera e a aximum amount of affordable housing in the Cit . (Hous 'ng assistance in this context refers to direct , financial subs ' ies provided for housing purposes by the stat and feder 1 go rnments. ) (See Hsg. Plan, 14 ) . � FINDINGS he Ci y has made a major commitment to the housing f its lower incom households. The City's housing stock includ s ' ' Page 107 � , THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES � January 22, 1986 GRAPH 37 � NEW LOW INCOME UNITS AVAILABLE ANNUAL INVENTORY OF ALL PROGRAMS � 50Q �` , 4�0 �� 3L;0 \� �� - � � , � � �� ' �\\ ` � � � �' ` `�`�ti �,t �.`� � � � �, 1L�0 ��\.` ��.. ��, � \�ti, ��l � �,�`,� ` �� 4 \ �,, ��,`• �, '�'. \ � �~� � ��h ;\`�\. � � \ �. � \ � ''' � � \�� 19i6 1977 '1978 19i5 14$f1 1a$1 1482 19$3 19�34 ________________________________________________________________ � GRAPH 37 illustrates the dramatic decline in new low income housing units available in the City. Changes in federal housing policy has virtually eliminated the supply of additional low � income units for City residents. ---------------------------------------------------------------- some 8,500 publicly assisted housing units for lower income � households. The average household income among residents of these units is approximately $7,000 per year. Without these � units, these persons would not likely find housing within the City. Until recently, the City's stock of assisted units increased significantly each year. Since 1982, however, as a � result of changes in federal housing policy, the number of additional publicly assisted units available in the City has fallen drastically. Table 25 below shows the number of ' ' Page 108 ' � � �� -�.��s� � THE FINDINGS AND RECOMMENDATIONS of the ' ITIZ NS COMMITTEE ON BONDING AND FINANCING PRACTICE January 22, 1986 � additi nal blicly assisted units available in the City f r each o the ears 1976 through 1984. - � ------ ----- --------------------------------------------- ----- TABLE 25 NEW LOW INCOME HOUSING UNITS AVAILABLE � 1976 THROUGH 1984 Number of ' New Units Year Available ------ ----- --------------------------------------------- ----- 1976 430 � 1977 321 - 1978 227 1979 255 - ' 1980 473 1981 160 1982 23 1983 58 � 1984 27 ------ ----- ----=---------------------------------------- ----- � The drastic decline in the number of new units availa le to the City is a source of concern to the Commiss 'on. � The Co issi n believes that City is unable to bear the ent're burden f ma'ntaininq an adequate supply of low and lower i come housing with'n the City. Therefore, the Commission believe that St te a d Metropolitan agencies must cooperate with ce tral � cities 'n or er to develop an appropriate lower income hous 'ng strateg in ight of the federal government' s current polic es. � Fur ermore, the Commission recommends that the Ci y make a ommi ent to ensure the maintenance of the supply o housing affor able to lower income households and take thos reasona le st ps necessary to enhance its ability to provid � additio al lo er income housing opportunities. OMMISSION' S RECOMMENDATION FOR CHANGE � In 1'ght of the fact that the supply of additional publicl assi ted housing units has been virtually eliminat d, the Co issio believes the City should consider the follow ng � � Page 109 � � THE FINDINGS AND RECOMMENDATIONS � of the. CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES � January 22, 1986 additional policies related to lower income housing: � MAINTENANCE OF SUPPLY OF LOWER INCOME HOUSING UNITS � Maintenance of the Supply of Lower Income Housing. The City will strongly discourage the provision of public subsidy or � assistance to projects which diminish the supply of housing units affordable to lower income households unless concrete, contemporaneous action can be identified which will have the effect of maintaining the supply of housing units affordable to ' lower income households. CREATION OF A� LOWER INCOME HOUSING FUND _ � In addition to this policy addressing the supply of lower income housing units�, �Ehe Commission proposes the creation � iof a Lower Income Housing Fund: � The City should establish a Lower Income Housing Fund for the purpose of providing dedicated, on-going financial � resources for the development of new lower in�ome housing units. This Fund should be used for, but not limited to, development of new lower income housing units _to replace those units which may be lost as a result of the City' s Economic � Development activities. • The Fund should be financed through one or more of the � following sources: ,1. The City and/or the State should capture interest ' income paid on various rental or real estate related deposits, 2. A surcharge should be added to recording fees for real estate transactions or other related taxes, and � 3. Payments should be made by developers of large projects which eliminate lower income housing units in the City. � Maintain and Preserve Neighborhood Character and Quality POLICY t 5. Neighborhood Quality. In order to assist in the � Page 110 � 1 A� �/ Y /,,.�,Pl �. � !" *�1 \d' � THE FINDINGS AND RECOMMENDATIONS of the � ITIZ TTS COMMITTEE ON BONDING AND FINANCING PRACTICE January 22, 1986 � mainte ance and preservation of the existing housing stock the City s all chieve a conservation status for 80 per cent o the � � City's resi ential blocks by 1990 and specifically: a. Realize substantial improvement of 1,000 reside tial locks through public action and private � reinve tmen . b. Maintain and conserve 1,680 residential � blocks c. Achieve enough rehabilitation to reduce � substa dard nits to no more than 15 per cent of the total housin supp y. � FINDINGS � The Commission did not attempt to measure progres toward these policy goals. The Commission did discuss the e policy goals with City staff and does agree with the inten of these olici s. � COMMISSION'S RECOMMENDATION � The specific goals contained within the City' s neighb rhood qua�ity policies are very specific in quantit tive terms. If a means of monitoring progress toward these goa s has not be n est blished, creation of an appropriate process s ould � be con idere . , POLICY � 6 . Neighborhood Maintenance. The City shall see to assist in th maintenance of the City's existing housing s ock by: � a. Improving the effectiveness of the City' code enforc ment ystem. � b. Facilitating code compliance by providin financ'al an technical assistance to homeowners. � � Page 111 � � N � THE FINDINGS AND RECOMMENDATIO S of the CITIZENS COMMITTEE ON BONDING AND FINANCING PRACTICES ' January 22, 1986 � Ensurin ade uate maintenance and u radin of � c. 9 4 Pg 9 public facilities. d. Ensurin ade uate maintenance of property � 9 q exteriors and yards. � FINDINGS The Commission did not attempt to measure progress � toward these policy goals. The Commission did discuss these policy goals with City staff and does agree with the intent of these policies. � COMMISSION' S RECOMMENDATION FOR CHANGE � NO CHANGE RECOMMENDED. � � � � , � � '� � � � Page 112 � � � �� -'�,��°" � 1 � � . � THE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � . � APPENDIX A HE TRACRED ECONOMIC DEVELOPMENT PROGRAM - � � � � � Prepared on Behalf of the Commission By SUSAN E. KIMBERLY �; Staff Consultant to the Commission �' � � � Page A-1 � � , �;� . - ��,�::- � � THE FINDINGS AND RECOMMENDATIONS of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE APPENDIX A January 22, 1986 ------ ----- --------------------------------------------- ----- � _THE CITY'S TRACRED ECONOMIC DEVELOPMENT PROGRAM ------ — . --------------------------------------------- ----- � I A II B II C II D II E II F II B II H I 21Ttq0�D 31DIfl�T I11N�5 IlDIt�T IIIIIESflBrtS 41 510II�T ITIIRES � 61 AX LEVY &0. BdO OEBT SERVICE 71 91Yes� Tobal Hp/PED Port Total DII�CT 91 l01 1 412 95 5i7 SB 101 4S9 9fi6 I11 1 tiil 94 �95 82 S48 63o U2S � 121 1 399 B9 y89 82 W2 724 1212 131 1 413 dS � 156 724 8AY 1378 1�1 1 316 85 W1 �'il 767 1028 1659 13i 1 k99 96 39S 392 83Y 1222 1816 i61 1 S1B 96 611 4� 950 13BY 1994 171 1971 189 116 Gi6 636 1153 1784 2394 � 1B1 1 538 i 339 64l 1216 SBS7 ?395 - 191 1 GY9 lt7 716 1179 1218 2347 3113 �I 197 BGB 1�9 977 1�92 1284 2776 3753 211 1 1i67 lY9 ilfi6 23tii 1�82 362Z �789 221 1 1276 318 1394 3a67 1�19 -�476 5870 231 1 13Ye 124 1426 3187 151a 4GY7 60.i3 � 2�1 f97 1Y97 . 1E6 1?s'3 3�33 1767 SA�'c' 6225 231 1 1M9E 133 1G25 3315 17N SA79 6701 261 1 1851 175 2lP6 3926 1765 �91 7617 271 1981 2233 i �33 3773 1773 55�6 7179 281 1 Elo9 261 2370 373i 1774 �fB1 7874 z�i 1 i� 2e� 2z� �s� e +� � � �� i zz� � z� �e�4 e �e» n2� 321TQfN.S 2228/ 23'A� 2� 41Z33 22787 6�1i 9B6Z/ 331Perant of firand T 1 3h1 I.Y1 .l0 1.1E 1.87 1.0M 2.91 �.i3 351 � I i I J il II L II M II N II 0 II P II Q I� R II S II T II U II V I � 310IA�T Ii1�5 I16It�:i INY6i16i15 _ 41 51IIiUI1�LT MYEStIBrTS 61 Ca1VIlO IEVBiE BOD6 F�ISI16 tE491E BOO.ri TOTiL � REVEME ADDIT'L 10Till 6� AIYar Ibwl Total !/IIUPED Port Ta#al 1Nq/PED Port . Total BDQR IiNEST IlDIRECT TQfAL lil 1964 E144 i Z1M i I�1S 1415 � i � 1415 A 3369 4 111 1965 21ti4 9 2144 i 45i 45a i 0 � 45Y 81e 3p�i 121 1966 19�9 i 1949 e e e e a e 9 1986 3849 1 � 131 1967 1949 i 1949 9 3115 3115 i i i 3115 3118 8174 1�1 19G8 356Q 0 3502 i 16135 16135 • e i 161� B0B15 18�►52 1 1 131 1969 37Y2 9 3582 e 282� 2g2B 0 i i 2B2A �10 28332 301 161 197e 13674 0 13674 A 8325 83z5 e e i 8.�25 5268 . 27259 171 1971 1367� e 13674 0 0 0 0 e e a 15 13689 1 181 1972 16599 i 16599 • 7�38 7430 0 i i 7430 75� 31579 33 4 191 1973 16599 0 16599 0 S6i 56a 0 e e 560 1� 1BE09 21 -� 2ei is�� iie� e iie� a +s�e 4sze e e v ��e zs ir�e� zei zii i�s iie+z a tie+z e 6s� 69zes e e e 6� e�ae e�es� 2�i i�rc i� e i� e ei�e ei�e e a a ei�e i�s iies� i6 z�i �9n i�zz e i�zz e iem i6ne � e � i�e u9i� � 2�i i�e a +eee � � ar.�e 2ee�e iaeee zi2e iei� ui� i+ee9 sae�9 �ei � 251 1979 0 3189 3189 1201a S311A 65129 109411 330 1087�1 173A61 15194 192'2ti4 1 �� i� e i+� �i+� �a �� +�zs i�eea s�e �++� izer� �ze2� zie�+i 271 1991 Y 3GY1 1Sfii1 26958 117650 1titiGBB 68Sii i 69Sii 213109 3324 23�933 Z39g 2B1 1992 i B65 B65 7636i 64986 141265 2?3Ai 745 23015 161310 118873 275198 291 1983 i iB7S l875 1112715 98373 201b90 23435 150i 24935 22�25 20733 2�8633 �i 1994 i i Y 113233 914� Pl169Y 163408 � i6.�Y8 3fiB69B i?339Y 491488 M9B6 � 32170�iLS 11�66� 1473 154137 338678 631516 9Ta183 42aB61 f�345 i82399 1�52582 5YIA33 2111952 228i1 3ilPercent of 6rand T al 331 5•67 Z 34 7.li 13.39 28.70 44.1i 19.Y9 2.83 21.93 6G.�'t 22.95 95.97 !B0. � Page A-3 � � THE FINDINGS AND RECOMMENDATIONS � of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES APPENDIX A January 22, 1986 THE CITY'S TRACKED ECONOMIC DEVELOPMENT PROGRAM � ---------=------------------------------------------------------ � I A II B 11 C 11 D 11 E 11 F II 8 II M I � 391DItBf E7�BOITIDES M' TAX LEW FUDS &0. BOO DEBT SERVIfF � ��Y� Hn/DED Part Total IM�b(bwl Pa�t Tatal DII�T 441 1964 9.IY L li 11.2� 1.P9 &86 1614 21.35 � 431 19� 8.85 2.M 1&93 1.81 12.1A 13.91 24.d1 �61 1966 7.� 1.76 9.64 l.62 12.69 14.31 23 4S 471 1967 �.32 .89 5.21 1.63 7.58 9.21 t4.�3 �BI 1%8 .31 .BB .59 .2b .75 1.111 i.60 491 1969 1.66 .32 1.97 1.30 -2.75 4.Q6 6.82 � 5il 197Y 1.77 .33 2.10 1.�7. 3.25 M.72 6.82 " S11 1911 3.a1 .T2 3.76 3.93 7.17 ii.1S 14.89 5Z1 1972 1.58 .Y/ 1.SB 1.89 3.SB 5.17 7.05 Sll 1973 2.86 .SY 3.36 3.53 5.71 11.24 11.6i 541 !!i4 b 31 .54 4.85 7.41 6.3� 13.78 1&63 951 1975 1.12 .12 1.23 2.�7 1.35 3.83 S.A6 � 561 1976 7.53 .70 A.23 1&05 8.38 26.43 34.66 571 1977 324 .31 3.61 7.83 3.82 11.65 15.26 581 19)B 1.56 .18 1.74 4.61 2.5E 7.1� &88 991 1979 .75 .87 .82 1.67 .89 2.�5 3.37 6il 19Ai .82 .oB .9Y 1.69 .78 2.47 3.37 611 1981 .93 .6i .93 1.57 .74 2.31 3.2� � fi21 1982 .75 .i9 .84 1.32 .63 1.9� 2.78 631 1993 .76 .11 .87 1.8Y .� 1.8i 2.67 641 1981 .y3 . .Bi ' .M5 .99 .A1 .9B 1.43 651 661 . � I I il J II N II L II M 11 N II 0 II P II Q II R II S II T II U II V I 381 � 391IlDIIB.T IMIE5IElB!'B �I F�6t�IfS COM/%!O AEVEIIE Bd06 FqISIN6 f�11B�E BOIO.ri TOTiII. 411 AEVBAE NODIPL TOTAL 6RAND 421YNr Urb Ihwl IDA6 Total WqlPFD Port Takal Wq/PED Port Total BOI�S INYEST ItOIRECi TOiAL 431 4N 1965 17.38 .Y� y7.3B .80 31.27 31.27 .6� .Bi .0� 31.27 .Bi 7&65 1N.00 � �31 1965 47.34 .M 47.3� .@i 9.9� 9.94 .6i .B0 .Bi 9.94 17.88 75.16 180.� �61 19fi6 38.51 .dB 39.51 .0� di d� .Y! .8i .Bi 8i 37.54 76.06 1!l.BY 471 1967 2i.�iY .Bi 2i.4Y .0/ 3�.61 32.61 .N .ei .6i 32.61 32.56 �.57 18v.Bi +ei i�e �.+� .w �.� .e� i�.ei i�.ei .ee .ee .ee is.ei �.i� 9e.+e iee.e� �91 1969 11.62 .Bi 11.62 .8i 9.� 9.35 .Bi .8Y .� 9.35 73.01 93.98 iM.� � 501 19T8 46.74 .YY �6.74 .Bi 28.46 28.46 .A� .0i .0i 28.46 17.99 93.18 iBi.Bi 511 1971 85.62 .8! 8S.6f� .�Y .1Y .0i .Yi .M .80 .8i a9 85.11 188.00 521 l4/2 4A.86 .Bi �A.86 .80 21.87 21.87 .1/ .�Y .Bi 21.87 2P.22 9E.95 !8&00 S31 1973 77.85 .oi 77.85 .Bi 2.63 2.63 .8! .Bi .Bi 2.63 4.'J2 85.40 188.80 541 1974 SB.BY .Bi S8.8Y .0! 22.44 22.4� .Bi .8i .Bi 22.4/ .12 81.37 108.I�i S51 1973 12.51 .00 12.51 .� 73.2! 73.2e .M .@B .0i 73.20 9.?3 94.94 iN.BO 561 1976 9.58 .0! 9.58 .N +VB.36 4B.d6 M .BB 0i �8.36 7.�1 65.31 iN.Oi � 571 1977 I.li 01 4.1e .1! 42.41 �2.41 8.e9 8i &09 5&5Y 3&14 &1.74 108.80 581 1978 .� 6.85 6.85 1.07 38.97 4l.W 19.91 3 812 2P.99 63.03 21.2� 91.12 180.0! S91 1979 .M 1.6Y 1.6Y 6.04 26.70 32.73 34.19 17 51.66 87.39 7.W 96.63 1N.00 6AI 199i .01 f 1.11 11.11 2.9� 17.53 2!.�7 7.ti2 25.�7 32.B9 53.36 32.17 96.63 1N.00 611 19B! .6i 6.51 6.51 11.24 �9.06 GY.3i 2&56 .Ba 28.56 9A.86 1.39 96.76 100.@Y � fi21 1982 .0i .31 .31 26.98 2�.93 49.99 7.89 .26 8.14 58.A5 38.87 97.22 1N.00 631 1983 .Bi .73 .73 �.2! 38.51 78.72 9.17 .59 9.76 8&4B 8.12 97.33 188.00 641 1984 .@O .0i .B! 2E.71 1&31 �1.86 32.77 .8i 32.77 73.82 24.75 98.57 1N.00 651 661 I � Page A-4 � � ��-��3�'" � THE FINDINGS AND RECOMMENDATIONS of the � C TIZE S COMMISSION ON BONDING AND FINANCING PRACTICE APPENDIX A January 22, 1986 ------ ---- --------------------------------------------- ----- � _TH CITY'S TRACRED ECONOMIC DEVELOPMENT PROGRAM ------ - --------------------------------------------- ----- � � I (1 11 B. II C II D 11 E II F II 8 II H II I II J II K II L II M II N I ICQ�EtCI1L It�US�RIfti DEVEL�IB1f IPORT fINAIICIiB SIMqAY PED/HIW fltilNCIlB 9111NRY � 11964 196� 1961 TFIIaHI 198� IS�s tillTi�RITY lIIYBIfORIEB S�:PED fINANCIiII STNiEIENTS 1 Totsl Takal � I Im�est Irwest Finuiad Ndditini TOTAL Finuiced Additinl TOTpL TOTAL IYnr (List (list Bl imat�t Im�esl�t INVESTIENT 7c Ye�r Imest�k Im�st�t INYESTIENi ft INVE9TMNT 1 I 1964 i 1415 1415 i 1415 .12 1964 A • 9 .01- 1415 .le � i i� �o � �w eu i� .ii i�s � •a a .ee i� .e� i i i� � a e i� �� .i� i� o � e .e� i9ee .ia i i i�� 4223 3113 �ie � � i�� e e e .� �zs .�z i I 1968 9493i 16l35 8aB15 96930 8.53 1968 i i � .1i 96950 57 . � 1 I 1969 18i7Y 282� 2�ili 2� 2.19 1969 0 0 0 .0i 248.3i .69 1 I 197Y BiY 117�5 9323 526� 13585 1.20 197i i B e .� 13585 .9P 1 I 1911 iS � A 15 15 .oi 1971 0 Y 0 .00 1S .00 i i i�z 2ee i� �+�e � i�� i.�z im e e a .ae i��ee .ee i i� � ieae s6e ie�e ieie .i+ i� e e e .ee ieie .ii 2 i is�+ 2s �e +�ze 2s - +s+s .�e i�ra a a • .�e �sas .ai � � igrs � 6� na� �eees �.a� i� o � e .e� �eees .� i i�►s eee �z�s ei� izs� �+s a� is�b e e e .ae �as .w i i9rr 2e�e� i6r�e ii9i� zeee� zsz ign e e e .ee 2e�a� .�+ i i9�e �i� 2�e i+es9 +z�e9 �.�i is�e �se e r�e z� �s9 9i i i�n �e 6r�s� s�iie �si�+ 68304 6.01 1979 �zeio e i2eie �:� ee�i+ .�+ I 19Bi 57198 39675 12823 112�98 9.90 199i 6b5e 8 665@ 1.% 119148 .a9 I 1981 fM 1�974 11765e 3324 120974 1&65 1981 26959 A 26958 7.96 1�7932 1 83 � 1 1982 1 157330 W9A6 1�60?3 .174928 15.39 19A2 763fio i 76,i60 22.55 251288 1 .04 I 1983 62i i1B48B 98375 2i733 11916B 1e.48 1983 182715 0 1Y2715 30.33 221823 1 Ib� 3 1 1984 21/6� 91M55 12339Y 214945 18.91 19B4 113233 i 113235 33.�3 3280Bi 2M ITOTAL 1 1�28299 63131B 5i1A33 1136338 1iii0TAL 338678 i 338678 10/ Ih75i16 1N � ' I Takal Total � IPI�Irn�t Im�est Fimm�d Additinl TOTfII Olm Fi�rne�d Additinl TOTAL TOTaL IDist (List 0.ist B) Inr� Inv�st�t INVESIIENi x Dist Im�st�nt Imrest�t lNVESTIBtT % INVESTMlf i i i� s� �t i�+�e iz n i e e e .e� i�e .� � i 2 e e e e e .e� 2 z�ee e 2r�w .n �ee .ie 411 3 114719 73BB� 12�770 1916,'� 17.13 3. A A i .Bi 194G5i 1 2� i 1 � i 81A BW 9 B/A .07 4 1211Y i 12110 3.59 12950 .88 I S 0 13165 11570 1595 13165 1.16 S i e e .ai 13165 .89 I 6 Y 14b23 13215 1350 l�fi25 1.29 6 e . e 0 0Y l�i .99 I 7 i 958Y 5S6Y � 9586 .IA 7 1i167e � ib1678 30.91 11�178 .�7 � I 8 0 B30i 10Ai 738i 8300 73 8 3892 A 3892 1.15 12192 .83 4 I 9 5i 9�895 83350 10785 94135 &28 9 19Z5 ! l9zS .57 9fiB60 51 I 10 1 87985 Bti29S 22778 1i7073 9.�2 10 17N 0 1700 .50 188773 .37 4 I 11 0 21312 13695 5617 21312 1.88 il e e 8 .80 21312 .44 1 12 0 3ii95 22520 11475 3�1095 3.6Y 1E �16 9 5816 l.72 39911 71 511 13 0 17197 lSIMS 1752 17197 1.51 13 365Ai ! 36590 19.78 �i697 64 � 1 11 e e A 0 0 .6i 14 475 8 �75 14 475 .83 1 15 i 8632 �2i 312 8632 .76 15 115A0 A 11580 3.42 2le12 .37 I 16 e e a a 0 ' ei 16 120C# i 12860 3.56 1P8fiA .82 � I 17 23 �56616 2Z9915 226726 45b641 4A.19 17 6B2N i 682�i 20.14 32A841 59 Cityr O 15795 15795 a 15795 1.39 City 7715Y i 77150 22.78 92945 3Y I � TQft� 1 !�&.'98 631585 5A1A33 1136338 181TOTNL 338678 i 338678 101 1475@16 180 i�oof e e e v e �oof a e a e � � Page A-5 � � THE FINDINGS AND RECOMMENDATIONS � of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES APPENDIX A January 22, 1986 ---------------------------------------------------------------- � THE CITY'S TRACRED ECONOMIC DEVELOPMENT PROGRAM ---------------------------------------------------------------- � I N II B 11 C II D II E II F II 6 II H II I II J II , K II L II M II N I � 2111p1SIN8 DEV��IIBlf PROBFNlIS 31PORf iM1TIlORITY FINi1CIlB 51lIIWRY PED/FNI{1 FINNICINB 51lIYWY 411964 THROU611 199� 1964 TH1�191 1984 SISQWfE: POIR AUTiIOR[TY INVENTORIES S�:PED FINANCINL STR1QEpT5 71 Total Ta#al � � 81 lmest Imn�t Fininced Additinl TOTIIL Finamd Ndditini TOTAL TOTAL 91Year (List A> lList 8) Im�st�►t Im�est�t INV6TlEM x YNr Imrests�t Im�estant INVESTMOIT % INVESiNIT % 181 iii i�► e a e .� i� a e e .� e .ee i2i i� e e e .e� i�s e e o .e� _ e .ee � iai 1� r a v .e�i�s a e e .ea a .ee l�i 1�� e o e .e� i�� a a e .ee e .�e isi i�e e + , .er i�e e a e .� e .ee 161 1969 e e e .�i�9 e e e .ee e .ee i�i im e e e .e� �s�e e e 8 .a� e .e� � lei 1�1 e e e .e� i�i e e e .0e e .e� iyi lyr� e e e .e� i�2 e e a .ee e .ee �i iyr� e e e .a� i� 0 a a .�e e .ae zii is�a e e e .ee i�4 e e e .�e e .ee �� ly� e e a .ee i� e e e .ee a .� 231 1976 e e e .e� !� a e e .e� e .ee � 2�1 1977 e e i � 1977 3208 0 3200 76 328Y .66 251 1978 2120 0 2129 3.tiA 1978 14� a iMD88 3.33 16128 3.34 �5� 1g79 338 A 330 53 1979 188�11 8 1�11 2`.81 188741 22.54 271 1980 57658 a 5765e�.47 1980 1G88B 8 16A0B h.d0 7�45� 15.43 281 1981 e e 8 .00 1981 GB500 8 66500 16.31 6B�B 14.e8 291 1982 745 0 7�5 1.19 1982 22's00 � 2238A 5.31 23045 4.78 301 1983 150Y A 158i 2 41 1983 23435 e '23435 5.58 2�935 5.17 � 311 19d1 A Y 8 .BB 1984 163�¢8 8 163468 38.99 163408.i3.B7 321 �irora� e e � e r,a�s iea�ora� a2ees+ e +zee�► ie� �� iee �i 351 Total Total � � 361Piin Imrest Imest finn�ed Ndditinl iDTAI Pl�finniced Additinl TOTAL TOTAL 371Dist lList Al tList BI Imrest�nt Imrest�nt INYESTIENT % Dist Imestrrt Imrestwrt lNVESTlENT % INYESiNif % 381 �i � e , e .e� i r� e 6see i.� �ae i.�s �� 2 0 • e .e� 2 e e e .ee e .e� �i i a e a e .e� a � e �eea i.e� �eee i.�z � 4z1 � o • e .e� 4 �te� e �iev e.a� �ier �.69 +si s e • a .� s o a e .e� e .ee ai s • e e .e� 6 r�ea e na� l.as nea i.si t �i � e . e v .� � a e a .e� e .�e ti61 A Y i i .6� 8 6983 i 6985 1.66 6985 1.45 �71 9 365Y i 5650 9.e6 9 l886 e !BN .43 745A 1.5M � �91 li 535YB � S�iBi 85.81 le 2BBYi 0 20BY� 4.76 735� 15.24 �91 11 A 0 A .Iai 11 A 8 A .0i 8 .00 501 12 745 e 74S 1.19 12 a 0 0 .00 745 .15 S11 13 0 i A .8i 13 e e e .8i • 8i 52i 14 A e e .6i 14 14880 8 14� 3.33 1� 2.39 531 15 i 0 0 .8a 15 BBBS 0 8885 2.12 8885 1.81 � SMI 16 A i Y 1i 16 8 8 a 8Y 0 00 951 17 2ti50 i 2�Si 3.93 17 63395 B 63395 IS.a9 fi5B15 13.65 ��Citywid� 8 0 i .oY City 245806 0 245886 58.52 245866 5&95 �eimra� e e 623+s a �s ie�mra� a�+ e a�ers+ ie� ae�� iee syi�oot e a e � e � a a e e � � , � Page A-6 � � �� - /�%�. � THE FINDINGS AND RECOMMENDATIONS of the � C TIZE S COMMISSION ON BONDING AND FINANCING PRACTICE APPENDIX A January 22, 1986 ------ ---- ---------------------------------------------- ----- � TH CITY'S TRACKED ECONOMIC DEVELOPMENT PROGRAM ----- ---- �--------------------------------------------- ----- � . � I N 11 B I C 11 D II E II f il 8 II N II I II J II K II L II M II N II 0 II P II Q I 11 2i ta a��ta.u�w r�s�+ts � 31 : FI STNTEMB�f((S ff flf tM1iVPED 61 ��g Qn ihnwa 71Y Estre Uppr L dntMn Cthdrl Rv Ird NOPI I�PII NOPIII lIOPIY I�PV Cncd T CD86 Totals Change ei � 91 _ lYl 1%1 1097 13Y9 2�1 2837 — ill 1962 1BB7 l626 2�1 2953 116 131 1� IM7 1G26 241 � 9 21 141 1965 1321 1626 2�1 �3A6 1134 677 9384 6431 21 � � 151 1966 9384 0 1 9 161 1967 1321 2197 �35 6391 137� 1fi64 13282 3897 1 9 181 1% 1321 2478 435 l0919 1996 3138 2�286 7094 !91 197A 28286 8 1 h 201 1971 1321 2478 �3S 12924 1996 3455 113E3 981E 3686 476a� 27349 136 4 � 211 1972 476�5 0 1 221 1973 1321 2178 435 145t9 1996 S09S 11323 9812 8635 l7956 7@34 8aB33 33198 1 231 197� 8�833 � 11 2�1 1975 1321 2478 43S 19876 1996 5i95 11523 '�12 B6s� 11956 14523 18868 1�4517 23684 11 251 1476 104517 a 1 261 1977 1321 2�78 �33 20396 1996 6329 115E3 9812 9633 17956 19291 10868 -3269 l61761 32�4 1 � 271 � 2B1 3il iif CITI CdMISS�I�Y01i BDOI1�6 iilO FINANCIN6 PI�ICTIC6 �IF IE:lIN61M11ffS � 331 � � � � � � Page A-7 � � � THE FINDINGS AND RECOMMENDATIONS of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES APPENDIX A January 22, 1986 ---------------------------------------------------------------- � THE CITY'S TRACKED ECONOMIC DEVELOPMENT PROGRAM ---------------------------------------------------------------- � 1 N il B II C II D 11 E 11 F I � 11 21CaPUTi1TI01 ff UOAB fin11f(�PInVa.S � 419alRCE:ST PiNI ECOlOIIC l�DiiTE, PED 51 61 i6nwal 71Ye�r Pro.i�ct Arount I�ount 81 _ � 101 1978 Tam Squire �AYi 48YY 12! 1979 Broin i Bigelor 1875 131 Eatt Sevw�th St 131� 3189 " 151 19Ai krt tiwd 2S8Y � 161 Blxk 4i � 171 Enero�r Pirlt 12883 iBl HoteI-5aim Paul 2B6a 191 Mdtnight Fa�ily Hsg Fiud 290i 251�3 2i1 �i 211 1981 Dist�ict Hati� 77M 22i Energy Hehahilitation 24� 231 Bro�oway SQuar�e 565 241 Selby Avemie 15@5 251 Energy Park II 3431 15601 2�71 l9BZ tlnion Oepot 86S �865 . � � �I 1� Darldsaes/1tH Ywr 1781 1875 311 ' 321Surry � 311 1978 46Y! 351 1979 3189 361 1981 25143 371 1981 ISfiYI 3B1 19AP 865 � 391 1983 1873 1il 1984 0 411 421 431PREPiitED BY 9U5F11 E KIl6EfA.Y 441FOR 11f CITIZOS COIMISSION p�l BDOI1�6 NlID FINANCIN6 WUICfIfF5 � 451aCi0BER, 19� 461FILE:UOA6 . 471 ,� � 1 � Page A-8 � � �-, .� , �� ., ,,.�,- � .. _ . _. •...: � � I � . ' THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � January 22, 1986 � APPENDIX B FINANCING INVENTORIES � � � � � � Prepared on Behalf of the Commission By SUSAN E. KIMBERLY � Staff Consultant to the Commission � � � � Page B-1 � � �'G•,t�/��r.- �� THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S APPENDIX B January 22, 1986 ----- ----- --------------------------------------------- ------ � __________FINANCING_INVENTORIES ----- ----- ------------------------ ------ � � satrrt PORT ITY fItWNCm PNOJECTS IiL AIO I IAL�EHktOPFBIT 1964- 1991 —- Plamin� Awwl ilmnal Total Fiern�sd Additinl Oistrict linw�l Fi�ced Ndditnl � Yur in d� Inv� Im�st�ent Irnest�nt N�r Im�t Imresk Inveswd 1964 Unioa 1 1415 1415 i 1 1415 lh15 9 1965 ter Carpora ion 1 93i- 43Y 5e! 3 45A 15A SAi � 1967 Unian 1 Si Si e 1 • • i�i t� i �nock i ii� ii� e i i�� st � i s� se o i . 1967 �n Paper Co 1 2i6i 931 I11� 3 4223 3115 i11A � 1968 ebvws 1 26i 2fiY e 3 1%B ldi� 1 2� 24e 0 3 1968 P E 1 ti25 425 8 3 196A nrwta f al S 3 L : 1 3� 260 24A 3 1968 Star St 1 Co 1 9iiii 12BBi 780li 1 � i� v��st �i st�ei i is,`�w ie,`��e e i 1968 T C� ices 1 10BB ti25 S75 1 94950 16135 78815 1969 Systea inaering 1 32S 325 0 IY , � 1969 lidated ectric 1 245 2�5 0 3 1969 ectric Card !n 1 70Y 250 459 3 1969 ianal Can atiai 1 I6BN � 14BN 3 18�7i 2B2O 1525i 197� 11 Cold St 1 ?B65 �665 ZM 3 � 197i il Labs 1 78i 78Y � 3 197i N nnsota Miei i Mfg Co 1 25M 91Y 199! 3 197i M nrsota Sta Bmk 1 3Y6O 131Y lSi� 3 197i P 11s6�y Co 1 219! 219! A 1 197i iggs Plu�bi ! �Y/ 23! 17i 3 11783 83�5 316i 1972 �baus 1 11i 1tiY Y 3 1972 6 i 8 Realty ! 278/ 230/ �i! 3 � 19Tt msota f S i L 1 lyi 148 0 3 197E M mesota Mini i Mfg Co 1 � 73i 518/ 3 1'J2 T in City 9�i 1 495i 4tBi 85Y 1 1378i 7�3i 635i � 1973 Syste�s inew�ing 1 1MS 56i NS li iOAB 56Y �45 1974 I erior Wood ucts 1 �i'S 92S Y il 1974 hern Mall 1Q Iron Co 1 3365 3365 0 S 1974 Tool Co 1 230 23a 0 3 4528 45?a i 1475 itol Ci D strihuting 1 250 ?S9 e 3 � 1975 6 ile�n ng Co 1 1S8! 10oi 5Yi 9 1975 P ilsb�oy Co 1 93S 935 A 1 i� i ieee iee� e s 1973 'ted Fb�pi a s Irc 1 720ii 661N 59N 9 15685 69285 6iii � 19�16 i�kyl�th �� 1 3Mi 227i 1�5i 3 1976 1�Engi ing 1 1215 1215 0 11 1976 Pwl il�ea Centre 1 135e 135o a 17 �45 8199 1855 � � Page B-3 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � APPENDIX B January 22, 1986 ---------------------------------------------------------------- FINANCING INVENTORIES � ---------�------------------------------------------------------- � satwr aau.aatr aunnnm Ftrrw�m vawECrs � COIIERI'.IAL AIO IlOIISTRIiIL DEVa�IBIT 1964-1981 Plinning Anneai Anwi Total Finnrced ildditinl DistricE iMual Fitin.yd Addit»1 Yev Firs il�e Invataw�t Imest�ent Imrestrnt Na�b�r Invwnt Imre�+t Imes�t 1971 Abra�t Medicai Clinie 1 23f 23� i 7 1977 p�track 1 10Ai 101i i il 1977 Artrack 1 2572 1915 6S7 11 19T1 ilstroea�Carp 1 - 110i 795 395 3 1977 Baldiriger B�Mary 1. 4Si �5i 0 3 - � 1977 Brton Enterpris�s 1 41fi� 25Bi 1668 ! 1977 Barta�Enterpris�s 1 7y9 7yi Y 1 1977 Gpitol Propw�ties 1 326Y 326� i 17 1977 6rnt Lal�s Coil i Dack 1 46i �Yi Y 1 - i9n� states co-oP � �YBi leeY i � 1977 Northland Elactric 1 �85 4BS 0 3 1977 Pill Co 1 965 530 435 1 1977 Re�ele irrerin9 1 53Y 145 3BS 11 � 1977 SeveMh Place Residmcr 1 2815 2815 A 17 1977 Soderberg Optical 1 7eY 425 275 3 2W87 16T1� 3717 1978 Balding�r Bakerv 1 lYi/ lIM i 3 � 1978 Baldim�Baka�y i fi25 �5i 175 3 1978 BroMnfBjork 1 745 745 a 7 1978 Gpitol Properties 1 628 620 i 17 1978 Comol Data Ca�p 1 830i 1800 73N 8 1978 N�rvest States Co-op 1 1295 1295 0 1 . � 1978 H�rvest States Co-op i aie Ale 0 1 1978 Ie�teriar Uood Praducts 1 �10 418 i 11 1978 Mc6i11/Jen�en Inr 1 39Bi SaY 34Ai 11 1978 P L Co 1 7�i 698 5i 3 1418 f�uality Im+Civic Centa� 1 3YB5 3aBS i 9 1978 Rutzick-�y Office CQnte� 1 4387 db25 7C� 3 1478 Sl�birland Inc 1 1243 12�5 i 7 � � 1978 Slu�o•lmd Inc 1 � 7 1978 9yth Pri►�ting Co 1 615 615 • li is�e st ao�s i+o�n,ta� i iee�e iez�e e i� i�e w�co i i9i, i� 9ie a a�i� 2�r�e i2�n 1979 B i B C,a�ications 1 IOM INi 0 3 '� 1979 B i 9 Ca�unicatia�s 1 55/6 378! 1876 3 1979 B i B Co�micatirnis 1 9iN 9iii i 3 1979 Battery Tire 6 I�e 1 65i 628 3i 11 1979 Beatrice Foads 1 350i 350i 0 12 1979 Capitol City Distribating 1 9�6 595 345 3 � 1979 Capitol Properties 1 1843 430 613 17 1979 CCiB Tersinal 11�se 1 1775 1775 8 6 IY79 Cantral Distrihution Inc 1 31ZY 3120 a 12 1979 Exd�ange Street Prtm 1 679! 63T0 429 17 1979 HicMey U J 1 10i1 lili i 1B 1979 R i B aroparties 1 459 4e6 45 3 � 1979 I.airy Derelop�nt Co 1 68W 681i i 17 1979�lop�ent Co 1 B3�i 855 0 I7 1979 Buildin� 1 7Bi 7�i 4i 7 1979 Oxfard Develop�ent Corp 1 7!M 63Ai 7M I7 1979�ygen Service Co 1 B60 7a6 1� 11 1979 R�dissan Plua fbtei 1 ileli 1!N SeBB1 17 � 19T4 Raod Tool Co 1 535 415 120 3 1979 S 3 S Real Estate 1 665 59B 75 12 1979 S�ndberg/Reu Building 1 16M 875 125 3 1979 Scml�n Ie�ternation�l 1 650 � lei 3 1979 St Pael Joi�Venture 1 1YIi 1Mi A 17 1979 T C Carrete Praducts 1 1�25 14E5 A 6 67754 53310 1�6M � , � Page B-4 � e .� � l��f`�,�:'� � THE FINDINGS AND RECOMMENDATIONS of the � CITI ENS COMMISSION ON BONDING AND FINANCING PRACTI ES APPENDIX B January 22, 1986 ---- ---- --------------------------------------------- ------- � ___________FINANCING_INVENTORIES ---- ----- ----------------------- ------- � � SAINf PfMI PORT ITY FIl�IICm PNOJ�iS 1964 l9B4N101 OEVB.�IBR Pl�min9 Amuai ila�ual Totsl Fironc�d Additinl Gistrict Nnwrl Finarced Additnl � Y�v Fits q� I�west�e�t Invest�k Imnst�nt M�her Im�nt Im�nt [mes�t 198�i�ricvn Nat R�d Cra�s 1 370/ iSA1 2ZM 3 19Bi Archar 1 BW A1Y 1 ♦ 19BY in-Nifg R Rd M�dicall 1 SiSi y33A lYN 9 199i itol ies 1 �25 423 • 1� 19Bi wy Ci ta 1 575 475 10Y 3 . 19Ai a•keay Li Teast 1 197e 147Y i 13 19B/ lid�t�d El�ctric 1 875 47i 1!6 3 i� a� �ct� i r� �sae iaev ie 198� 'nro n Hate s 1 211Yi 11i1i 11Mi 17 198� 'eroln fbte s 1 21B/ 2M/ i 17 " � 1990 'ncoln ies 1 565Y 565i e 17 19Bi lly ia 1 913 725 188 ! 19B! hw�stern ual Life 1 30iY 19Z3 1Y75 li 19BY lity Im vic Center 1 S65Y 1215 �35 9 198� Primi Co 1 181i 1Ni e Ii i9ee tron i ieee ivee e s � 198� C Dip�Tr fOren Ayresl 1 73g 630 12i il 57198 39675 11523 1981 Carporat: 1 230i� 25N! 8 lY i9e� c�n�-�t� i i2eae i2eee e ie 1981 ist T 1 16BIi 1888! i 17 1991 ist T 1 2BA0 2B8i � 17 � 1981 ist T 1 2ABi 280i 0 17 ` 1981 ist T 1 4iN ti60i i 17 l9B1 ity Ualk 1 � 43ii i 17 1981 llie�s ications 1 2145 116i 1M5 3 1981 ast�ew Inc 1 165Y 14Si 21i 3 1981 Grporyti 1 118i 14AA ! 3 � 1991 f�y al Ha�tei 1 96YY 96oi i 17 1991 =ell M�g 1 301i 3i10 i 12 1981 er+�tioerl Msitifaods 1 70i0 l�i i 6 1981 lan Pip�r Co 1 21i 2!i i 3 � 1981 �neoto Hos.l 1 356i 33fiY e n 1961 6 Nstlefard 1 67Y 4Se 2Z! 3 � 1981 i L Imrest s 1 4Si �5Y 8 1 1981 5qu�e 1 1a,i Mi6Y i iT 1981 R Im 1 S50i 55BO 0 11 1991 Park fice Bldg 1 2102 1975 57 !S 1981 aton Mid 1 �i27 A975 �2 13 � 1981 S icote Inr 1 3aBi 1� 1150 1 1981 ited Hospit s R�p 1 35� 35M 0 9 1981 au5er 1 466i 4iB0 A 3 12i87� 117650 3224 ise2 co►�or�tt i seee 6eee o ie i� i�t r� t �see � e t� 198� 1 Bolarder Sans ! 2525 18M iS25 3 198'2 er City I 1 2935 2935 0 17 1982 ury Circui s 1 510 510 A 3 1�2 F In 1 li3Y li3Y 0 3 198Z ltiw�Plua 1 796Y 79fii i 17 1982 itier Plua 1 641Y 64W 0 17 � 1982 ltier Plua 1 8S6Y0 6535 79afi5 17 1982 a Rayale Ho�elel 1 2415 E415 A 17 1982 House 1 77aMN 1981 S1@0 il 1982 ific ibl 1 190i 1135 765 1 � 1982 R Y 1 2�15 2415 0 17 isez y�c� i � zi�e en ii »ex wutn v i 3see �see e ie � 1982 'an Oil Co 1 70li 418i 2980 9 1982 var tVan Ma i Rogersl 1 632i 4725 15% 5 1982 Vi ieg Drill i ool Co 1 � 3595 6e6 3 15733i 64905 92125 � Pa e B-5 9 � � THE FINDINGS AND RECOMMENDATIONS � of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES APPENDIX B January 22, 1986 ---------------------------------------------------------------- � FINANCING INVENTORIES ---------------------------------------------------------------- - � �IINf PiMI.PORT iMlTlqNITY FIt�iM(FD PNDJECTS � CDIE(iCIiL WO Il�IIBTNIiL OEVB.�IENT 1964-19&1 Plbr+ing Aemual Atn�ual Total Firniced fNditinl Dist�ict flmwl Financed Additnl lear Fi�!1� Inve� Imrest�nt Imrastrnt Niuher Inveaw�t Inves�+t I�rve9nt � 1983 ii�ro Systus.En9it�ring 1 2i3i 2e31 i !A 1983 Wil Ca�poratiai 1 2S% Z49S 8 lA 1983 AFM Corporation 1 10Ni 100i0 8 1@ 1983 B i 8 Ca�unicatia�s 1 382� 3�2i 0 3 _ � 1983 8isan Bldg 1 20i 199 41 17 1983 Central Distri6utian I� 1 4M 4M 0 12 1983 Colw�ll Indastries 1 �Yi l60i 4�i 3 1983 CorrMd Ta�e� 1 17�77 . 633Y 11147 17 i�co�..d ro� i � � e n i�ca.■a T� i �s � e i� � 1993 Caor�d ToMer 1 MlBI 498i A 17 1983 EHC Industries 1 4PBi 2BS6 1350 6 19�?Exchae�ge Stree�t Prtrns ! 286i 28Yi 8 17 1983 6r�vb�r Elactric 1 3N 2Bi 18i 3 1983 Ff?�1N Fin�ciai Suvices 1 13o@Y 100BY 3� 17 � 1983 Holiday In�East 1 ll�i 960� Ih6B i 1983 tlospital Eqmpt Lwn Progre� 1 15795 15795 A 18 1983 Mimrsota Musw of Wrt 1 214 214 0 17 19A3 tbrth Skar Steel Co 1 1880 IOBi a 1 1983 RivervieM I 1 4600 2C� 2�i 3 19A3 Riverview II 1 2590 258i e 3 , � 1983 Rivervier III 1 258� 258! 0 3 1983 SkraYSS Knittira�Mills 1 9B5 9B5 8 17 1983 T C Concrett Products 1 2Z5 223 i 6 1983 Woods I7�ocolat�Building 1 3390 Z41S 475 17 1983 y{� 1 292 292 ! 17 118188 98315 20113 i9e+aHw c«�o�tion i �es � e ia � 1981 pllen Builainy 1 18ii 1� e 17 1984 B�tM6da HosPital ! 25�i 25e! i 7 1994�TM�Ik R�p 1 41Zi 4125 0 17 1994 Estes I i II 1 S1Mi 968� 111A0 12 � 1984 Fad Motor Ca�p�ny 1 � 128! i 1S 1994 Il�pden Bldg 199�►Napian Dapu�Boa Co 1 1245 12� 0 3 1984 Litho Swcialities 1 1275 324A 1035 li 1984 LP Gn/Ro�d Rncue 1 2�iAi 2145 ?55 15 1984 M�Coll Bldg 1 510i 5100 a 17 � 1981 Minnesota 1larld Tr�de Ctr 1 160BYi 130BY 87� 17 1984�ld Ho�e Foods 1 560 SA0 8 3 Iggry�dw�,Music Thptre 1 45888 ZfiBGO 1814A 17 1984 Putner�ip Tuimolagi�s 1 1775 4715 8 li 1984 Pawrrtian 1 15N 1365 133 !e 1984 Pm�np lkrth A�w�ica 1 180i 189� e 10 � 1984 St Josephs Hmpital 1 2415 2�15 • 17 1961 University Park Midtql Bld9 1 57ii 45A� 12M 13 218fi2A 91455 119165 10ii1.S 2!6 1�B299 6315i5 396793 18�8298 631585 396793 p�y� 5�16 3e91 1936 5i16 3061 1936 �i� 1383 1415 � Deb!/E4aitY .61 .39 � � Page B-6 � � �� THE FINDINGS AND RECOMMENDATIONS of the C TIZE S COMMISSION ON BONDING AND FINANCING PRACTICE � APPENDIX B January 22, 1986 ------ ---- -------------------------- FINANCING INVENTORIES � ------ ---- ---------------------------------------------- ----- 1 li II H II C II D II E 11 F II 6 I � 2 SNINi PiUL DONT i1UUt11011ITY FIWr1ED PRO]ECTS 3 19W-198� 4 Plaeninq 5 Taksl Fiewiced ilaisted Jobs District � 7 Yts Fir�li�e Imest�s+t Imest�wr! Invest�nt i�pvcted Nu�har e ii i��n��e.�i� �se a 2sa b a 11 1963 Woples El�ctric Co 6Y e 6� �8 3 � 12 1966 Rob�rts Caostructia� � ; � 14e 3 13 1967 Nidnn Bldg e 3 14 19fiB Crm Co � 8 � 24 3. IS 1969 flpidK P�p�Co �� i 2180 e 1 � 16 1969 Hwki�trisical Cap - 1� O 19Yi 21a 1- 17 1969 Shi�ly, J. l. Co � 18 1%9 Ilnited Wrcrl Su�vins 1� � lg�j� 1N 3 II 19 1969 Nilbred�t Elactranics � 0 ;,�y 31 3 2� 19Ti Owinrl i Co � e BBB 0 3 21 197'�Lrrn tleget Bldg ?2 197i Msminota Hx6or S�r�vice 2!i e 21i 36 3 23 197i NortM�st Peblicakions 180 a lBi 22 3 � 24 1970 St Paul Iaoaud L.ot �� 0 1� 3B 17 23 1971 Niple Ta�ing Co � e � � 3 26 1972 Nriderson Snherlich � e 2M hl 3 1972 Nr�om s Inr 28 1972{Iwdas � A 205 5 3 1973 Briqhtbill Ruto Service � � � 18 9 � 19'13 Capitol �Servin � e � 12 3 31 1973 Nestport Of ice Building 197�Oakota Buge Serviro � i 6e e 3 i�r r�..��, w ao� i�sreac wStM, c�a rkt�i 1� e 1� � � 3 i�sro�s��+�co . i�e a i�e � a � i�rcr+��a�i�� 9rs u s vost offia � i � �s a 1976 J i L Wire Goth Co 1� e 12� 16 3 1971 Gpitol Citv Ikldin9 � 3 IYf1 Grlyle Rnl Estate � 1977 Ex�crctone Syste� � ! 70 1! 3 � 1977 Ietwmatiarl Multifoads 1� 0 lyi 16 3 I 1977 Irvin Alan Fabrin � 0 1� � 3 I 1977 Pndential Life Irr � � � 2yi 3 I 19T1 Drude�ial Lif� Ie�s y� Y `� 14 1 1 1977 Merderer Pri�ing Co � i 60! 4 I 1977 Hestwq T�ieg Ca'P � � SY �7 3 � 1 1978 Rlhen 9retr�tal 1� , 150 11 3 � 1 1978 Baclay Mu�ine 1� � 1� 2 1 I l978 D�venpa"t Ce�w►t�° g i 2 i 3 5 1 1918 Oelta(Hwn 1� 9 1� 11 1 1 1978 Kach fusls � � � 3 3 1 1978 ReWCkel, FraNi � 8 � 2 3 � I 1978 Re�Nel, Hemy � 0 � 3 3 I 1978 Ro�s Auto Parts � i � 18 3 I 1979 Mid Continmt M9t Co � e � i 1979 Stranik, Richard 3 I 1980 AckarWn, Ao6ert F 3M i 3aB 26 1 198i Mimasota Mutual Life I�Co 2BIi 0 28B! 1156 3 � 6 1 14Bi T��Storeslicatiais i� e i� � 3 1 1981 HaM�iro CJ�ical Corp I 19A2 CoMrol Data 4Ena+��Park) 1750i A 175� � 10 I 1982 6tB Batteri�s 89 i B9 273 18 i i9e2 wt�o,�.i s�� ie e ie 2 i� h 1 1983 Mndak Truckieg.Co 4aB 13 3 6 I 1983 Northern District Heating 2Y� i 20Y 9 3 I 1983 St Pwl M�ine Inc 2i a 2Y 4 3 6 I 1984 Q�ildran's M� 15� 0 19� � lj I 1981 Nidac{rrica Inr � e � � � � i i�auo.i�o ci�n �s e � z i I 1961 Red Rxk of Mimsot: SBBi e 180i 7 1 TOTNLS 11BW� i 1YBY1i Page B-7 � r ,_ ... �. � � � � • � THE FINDINGS AND RECOMMENDATIONS � of the � C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE January 22, 1986 � � ' - � � � . � � P epared on Behalf of the Commission By � SUSAN E. KIMBERLY Staff Consultant to the Commission � � � � Pa e C-1 g � � �� THE FINDINGS AND RECOMMENDATIONS of the � ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S ___________January 22, 1986 ----- ----- - -------------------------- ------ ADDITIONAL TECHNICAL DATA � ----- ----- --------------------------------------------- ------ � I A II B II C II D II E II F 11 8 11 H II I II J 11 K 11 L II M I ll 21 IQI ff H10 COUEARBE RNTI08 iY0 AETUNI dl INYFSTIEIR � 31 YIEtDS 1963-1994 41 :CITY ff INf PINL FIlYYCIt�SfATE1QR5 51 71 Total City Ad'usted t of pd�EMV Ndditiarol Ta��s Diwct Bll' L�vis Levy � tle! I Total City Total City Coste AOI levw�age Coverag� � iei i� zr� is�i�e - .e�assi .ei�io - - - - - - ill 196�i 95 18 21415 199B6G6 23369.l3�6331 .i13�BE5 81i 313 118� 26.61 19.73 .6B 121 1963 21827 1617YG5 26499.8365�62.a134979 96B 35B 1323 23.�8 17.�i .64 131 1966 21724 1652�73 3S4Y!.i368171 .0131463 1282 �65 1�92 31.29 23.73 .86 141 1967 61 14 2^c�41 iG8918! 37366.0365216.a131639 1363 491 16Si 29.76 ffi61 .A3 � 15I 1968 244G5 175327! 63�89:A�i4176.01395i7 231E AA6 19Y9 �6.44 33.28 1.21 161 1969 6 25521 184359i 9l321 .0376834.8138433 3ii1 1250 ?354 �.48 40.58 1.51 171 197i 2B9l9 1930261 8G67�.0399i9:i.0149768 3439 1298 23AB 54.Sti 36.41 1.�5 LBI 1971 3 243M 21Z41N 199136.�46�31 .81378Y3 9213 2744 2fiB6 1Y2.1S 74.13 3.�3 191 1972 B91 0 36�81 �221633 922�.o39G6ei.Y163759 3658 151e 3�63 46.29 28.27 1.12 2Y1 1973 B 3�137 232�33 1l7399.03719i4.a1z939B 3994 1390 3533 39.32 30.39 1.13 - � 211 1974 26T12 2513416 211383.d�/67A6.O1�i259 8076 2257 4&/9 �6.33 41.Z! 1.67 221 1975 11 28917 272744z 1813?b.8416365.A1B6� 7GB3 1956 5376 36.38 34.� 1.43 231 1976 ! 3SA53 2B2�7e6 96765.0373122.01P4093 3611 1201 3756 2&86 16.91 .63 2�1 1977 116 4 28946 2988� 163�4M .039a81A.�965tiA 6382 1576 5382 29.29 3Y.34 1.19 251 1978 11 1 30957 326542� 277�23.7�.ilY9M6i3 9849 2630 6352 41.41 �3.68 1.� 261 1979 1196 8 30867 36169oB 35148/ .8330886.A0B5341 11630 3Mb 7218 �1.5b 4A.69 1.61 � 271 198i 1 1 33357 �1 �353L3.03Y19B7.8882316 13145 358� 7186 50.43 61.27 I.BS 281 1981 330@i M8T237e 770i78.02fi6166.0869431 20197 5278 7888 66.81 97.62 2.6Y 291 1982 1 3SB79 �29120 716750.0287417.0B6y886 20284 4579 A6S2 52.93 81.57 2 34 3Y1 1983 17 �B4 59BB�i5 �6W15 .829496G.0867602 13811 3113 7129 �3.b6 64.59 1.94 311 19&1 1952 �5106 6367731 379199.A3B6572.Ai70935 11625 2686 7233 37.14 52.43 1.61 321 � 331 Ial ff AIO C04ERA6E f�1TI0S iY6 AETl1N11 OI INVESiI@tf , 341 TIVE YI 1963-1984 351 :CIiY OF PiML FINANClf�STATElENT5 361 371 Tax Rat�s is Cu� 3B1 Total City Rd'�ted C� t of Adj EMV Additioml Taxes Dir[ct 391Ytrr I.fvi�s Levy � p�t I Total CiLy Total City Costs NOI LNarage Cov�ew�e � +ii � 2e9� i��t�e - .a�si .ei�o - - - - - - �i �+ ssii zi++s i�e�s 2�.�u .aia+ers aia ais ite� �.si i9.r� .�e �3� 965 21827 1617A6S 49867.Y36S262.0134979 iB21 673 2'Te7 2�.86 18.� .67 MI 966 ?172� 1652473 85ZT4.i362171 .a131465 3lBB 1121 �199 26.7Y 20.31 .N � 451 967 6171 ?324h 16B979f 12ZSB2.0.�63216.Y131639 4t77 1614 3849 27.59 2i.96 .77 �61 968 2M65 175327i 1860'll .0.�64176.1139537 6776 23% 7757 33.47 23.99 .87 y71 969 69� 25521 1843990 2763�1Z.0376834.0138433 10415 3826 1M11 38.22 27.61 1.04 4AI 97i 289l9 193lE6�i 363�66.Q399i93.0149768 1419! 5436 12391 I3.8B 29.3Y 1.17 491 971 9851 �'l3y4 2129�i 5622�2.A162631 .a1378AS 2Gil9 77�7 15e78 51.38 37.29 1.73 s�i 9n eeii �ei z2zir,� r��.e��ee.eir� 2�ss ini� ie�,e se.� as.�e i.+x � sii � s�ia aeia� �� iea+.e�i9e+.eiz��e 2e� �s zia�s +s.a� �.a� i.� 521 974 95812 26772 2543416 976?17.8376786.8105299 36775 1�276 2672� 38.�5 36.53 1.38 531 113582 28917 2727942 11607�3 .BA16365.018fiN2 48329 123� 3z1M 39.33 36.16 1.51 S41 6 185.?96 35633 2824786 12575e8.0373122.a12�93 �6920 1560.5 37856 41.2P 33.22 1.24 551 1 11677� Z8B�6 29886N 1M2aBe2.839B91e .M965MA 95626 13716 �3238 31.72 32.86 1.28 561 1 8 115931 3Y957 3265ti24 1698?�26.�5A26 .0Y91B03 f�291 16190 49589 32.47 34.25 1.22 � 571 1 119678 38867 3616988 2�49710 .0338886.0�5341 678?2 1749E 56B0B 30.79 36.a8 1.19 581 1 1223�1 33357 �G2291 2485�93.03Y1997.089?316 75e27 20456 63914 32.01 3B.8B 1.17 591 1 1 128355 33BY0 18Z2379 32�171 .0266166.0Y6B431 86645 22273 71802 31.� 43.34 1.21 6Y1 1 158887 3387e �28128 3960921 .0287417.AA6�A86 1138M4 25701 Bl15� 31.94 49.23 l.42 611 1 179636 �184 99BB535 4421337 .0244966.8867662 132fi25 29889 87593 34.13 50.48 1.51 621 1 195217 �5106 6367734 48Y1535.�3Y6572.Bi7iB35 1�7171 31e16 9M816 35.86 50.63 i.� � 651P BY SISAq KIMBEALY fi61FOR CITI291S IS5IW1 0!1 BDIDINB AtO FIlNdCII�PNACTI�S 6BIFILEs I6� � 691 � Page C-3 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 ---------------------------------------------------------------- _________ADDITIONAL TECHNICAL DATA � ----------- ---------------------------------- IAII B11 CII DII Elifil 811 HII III JII KIILII M11- NIIDiI PII @11 Rtl SII TII UII VI � 11 — 2158EItlL O�IdITIOI OEBT S111W8Y 31CITY ff SAIN!PqL!Mq/P@ WO POIR AU1I�RITY 41Sd/�5s CITY FINAICIAL STA1@61TS� P011f AII�FI�NITY Di1Ti1 61Wq/PFD OEBT SENVIIf COSTS �� 71 lkb�n Nwrwl U. R. tMfuiAid D�trn O�v Dst� Wrk N�r►� 7th Plan TDTiL PONT iAtINOR1TY al�ear Int. Prin. Total Iet. Prin.Ta2a1 I�. Prin Total Iek. Prin.Total Int. Prin.Total I�. Prin. Total IM. Prin. Total 91 � i0i i� e � • o o � o a o e 2rs e 2� iii i� �e • se • o a o se • se �ei a aei �xi i� ez • ez o o e a e� o ez +�e � s�e iai i� a� • ez • a � • � e e� re2 i�e � ui �� iz� � i�a • e o a � � i� ��+ x� �z4 isi i�a �i � �i o e o • � +� �� n z9e �6� � ibi i� �z � � • e 0 � �2 � � - �e aee eae m im x� ie� � o a a � a� iw +� � � �se iei 1�1 s� i� � , e v e se� i� 636 813 aw iixt i9i �m sei i� wi e e a v s�i i�w wi r�i aes iaae 2ei i� � 2� �i� t e o o � z�e iir� rza ��s izie - 211 1974 1Z12 � 1492 i 0 i Y l212 2BY 1�92 769 515 1284 2�i i� i» aas z�ee o �z e �z e a ir� � za+e r,ez �ee lzez 231 1976 issb �w 26� e �i r� �i e . e 2� e� �r � 620 1419 2�1 1977 1293 8G5 2158 64� A 642 2T! 29 297 a ! 2212 885 3097 A90 63Y 1510 2S1 1978 1253 865 2118 586 225 811 286 2! 3Y6 i 0 2125 ill! 3235 997 778 1767 261 1979 1195 91e 2106 S6B 44S 1013 197 ! 197 i 0 196Y 1� 3315 8BA B80 1764 271 198� 1153 93S 2888 543 415 9B8 296 0 296 112 0 11E 312 0 3i2 2�6 139e 3826 855 91� 1765 � 2B1 1981 ilii 9S� 21fie S1A 4�S %3 296 0 296 ilE 0 112 3i2 0 312 2378 1395 3773 828 415 1773 291 1982 IBB2 96i 2042 493 4/5 93B 296 e 296 112 A 112 34P 8 342 23z5 lyY6 3730 78� 999 1774 3i1 1983 1112 990 2102 ti6B 44� 9e9 296 0 296 109 110 219 323 750 1i73 230'7 229i �597 728 183� 1758 311 19&1 1069 116S 2234 4�i S�Y 990 2% 0 296 1�2 13Y 232 281 85Y 1131 2189 2685 h874 720 1&S5 1773 321Tata1 173Z6 9995 2T321 425B 2985 7243 2572 18i 2672 516 24i 786 1Giv 1600 3?.3Y 26332 149Ei 41252 1�9fi9 11625 26593 3�41QR5TirOIt6 PRIICIPi�Ap01MT5 � 36iWq/PED FINiUPED 371 Urb�n Rwr�rl U. R. R�fu�d�d DMntnn Dfv Dstr Park Nnney 7th Pl�ce TOTAL PORT A11i110NITY 381Y�a Iewe Prin. Total Iesu�PrinTotal Issue Priniotal Issur Prinrotal Issne PrinTaRal Issue Pria Tolal Iswe Prin. iotal leOBi � ai i� e e a o a 0 e e o a � a e z� o i2sae 4�i i�� in� • i� • o 0 o e a e a �� • ue� a o izse� �xi ��s � a z� • v a o 0 o a o � 0 2�e is� � ia�e �i i� tt� o �er • o • o • • e o iisr � �ee o ir,� i� wi i� z2as � �s • • � • � o e o z� � se+s zae� �e issr� �si i�e a�s � e� o o • a o 0 0 0 2s+s � e+so e z� isz�e � �i i� e � a� : • � • e • a o o r � � zseo � i��e 471 197'� 31M !i[1129! • i i i i i � � 3YM 1N 1129i 2650 33Y 1979i �ei i�ri v i�iii� e • � • a � e • a i�r iii� e � i9+se +�i istz e� i� i� • a • e o 0 0 � e� t� i�2e a � �e�s sei i� s3ss 2�� 0 0 a e a e a • r,�s r�e 22� e 4�s iawe si i i�4 9e�s ze��» o • s� e sw e o • o � 2e��s�e s6ev sis 2� � si is�rs ��ee s6s� o • � e sier e e e o e� s�+�ies e eee� si is� -ie� i��w z�i�s ie� o ie� � se+a e • � � -ie� eev�s o �z�s �+i iyn abs�w e iee6e 2� saee e e a a e ees��e e �zi�ee �i i�e a6s z� 2zs �s � 2e �ea a e e e a� iiie�ie e rre�� i i�n 91!24525 +4s �ee e �sae 2er,� a zer� r,uo a �ir a�s i�+rrae e eee 2eee� sri i� �a� as e� o s� e �s e r�io a i�ar�e e 9ie i9ia� � 5ei isei �e z�e ++� e� o s� e 2e�s o �sie � i�s++�ss • � iezea s�i i�ez �� z2i�e as ewg e sa� e 2ess o c�ie +�e i+�+�ew e s� inie 6el 1983 499 99i 21679 Mi 76Y6 0 53Bi f10 1955 756 57b0 499 229!�249 0 lA3Y 161AY 611 1584 49S 1165 218i9 5�i 7065 0 530i 13Y iB25 � 4919 495 2685 4Ai59 • 1Y55 15125 fi21 �1@i1 19995 216Y9 lBB6i 2985 7lfi5 5iM 18i 530i 2l65 24e 1825 651i 16Yi �91Y 54979 149�4AY69 16750 11625 15125 � 631 651PREDfINED BY�ilp E KII�EIILY 661fOR Tff CITIIFNS COMI5SI01 O!BdOIi6 AID FINAlCI16 PRACTIfFS 6710CTOBE_Rs_1�985 681FILEsuEBT 691 —— � �. Page C-4 � � � F�� THE FINDINGS AND RECOMMENDATZONS of the ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � ___________January 22, 1986 ----- ----- - -------------------------- ------ ADDITIONAL TECHNICAL DATA � ----- ----- --------------------------------------------- ------ � I A I 8 II C 11 D 11 E I 21COIBItfD fiEIEtML�81.I6NTI01 DEBT 311�IA/PED PUNT �ICITY FI Ipl 5Ti1TE1BlTS � 51 . 61 0. Baids 71 utstanding 81Y� PED Pat Total Sil 1 17Yi 123i� 1�12!! � 131 19�67 SB45 i� Z1� 41 1968 B4S0 1i270 23720 SI 1969 8390 17470 258Go 61 1978 11290 13�99 31� � 71 1971 11160 1945A 3861A - BI 1972 19629 IA965 38585 91 1973 25TA5 18470 44115 I 1974 3�979 23535 38523 11 1975 43185 22935 66060 - � I 1976 42205 22335 6454a 1 1977 4132A 21705 6�25 �1 1978 4A510 2B93S 61i�5 1 1979 4773Y 2� 67785 - I 198� 56350 19145 65495 I 1981 449� IB� 631� � I 1982 41� 17210 6125e I 1983 4?35e 16180 58�� I 1991 ti� 15125 S18S 31 i � . � � � � � � � Page C-5 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 ---------------------------------------------------------------- _______ ADDITIONAL TECHNICAL DATA � ------------ ---------------------------------- I 11 II H II C II D 11 E II F II 8 II H II I 11 J II K II L I ll � 21�II.QLAT101 ff C06(iNf DQLAII ESTI111TED 11fM11Ef Vi�IF E9U�19E9-198� 41IIPLICIT PRICE DEFlA70N/STN�IIMES 115�fOR COIYER9IQB MI C�LTirl15 t�A611@ITS SI Priar Lws Ams�d F i T E.ILV. Carotaid Rate 61Yer Yer M�s�d Drnan�l Valu� IM'ust Adjust I.P.D. Dolln� of � 11Nws�d Payabl� Vaiw Prapmty Nni Ppky �9679e 2.967143 I.P.D. 1983 f Value !ET t Qung� iii i� iaz� ie�i s�e i2�t � iias» 2s.�e ie.2e im� - - 111 19�9 193i 1l3228 313Y4 1319Eh 391516 1f187is Zti.7i 9.9i 11413Si9 69556i 6.49 ixi ix� i� ir�s �ra iz�eee �er�s i� zz� a� iie�ize� wnw �.x � 131 1931 1932 1G�692 15931 117851 349779 99437Y 1&8� 7.�6 13395A�7 1534324 1�.94 1ti1 1932 1933 lS39�9 43/95 11Al14 328584 939696 19.9� 7.9� 11899673-l�96131 -l1.17 131 1933 1934 144136 1f3S9 1i3778 3/A�11 8Bi�38 21.8i &6S IY172841 -1726B32 -1bS1 161 1934 1933 131365 3762Z %743 2l7131 B2/37S 21.9� &69 9439933 -7329�9 -7.2Y 171 1933 19�6 134319 376i9 9671i 297�i3 B2l�95 2�.N &89 �72 -213861 -2.21 lsl 1936 1937 134273 37596 96677 ZB6933 819BfS 24.3t 9.64 ASi179� -72�282 -7.85 � 191 1937 1939 l342�7 37584 9fi643 2B6B.�1 819527 2�.1Y 9.56 85693z9 67539 .79 Z!I 1938 1939 134181 37571 9661e •286737 8192�i7 23.8i 9.44 8674383 1/B06M 1.23 211 l939 19M 134137 37�9 96519 28fi643 A189B4 2ti.6Y 9.76 8389596 �284787 -3.28 221 19N 1941 134596 37687 96909 2�7624 BE1783 Z6.Si .11�.52 781�689 -5749i7 �i.BS ?31 1941 19ti2 !3'J3165 37815 972N 28B6o6 82�59� 29.5i. 11.71 7843952 -T1e737 �9.86 - 2�1 19�2 f943 1351� 379M4 9757� 2B45B6 8E738B 33.8� •13.1A 6318236 -725716 -1i.30 � 251 1943 1944 139973 3BV7P 9T9ii 2916GB 83i195 33.1e 13.13 fi32�17 2281 d� 261 1944 1945 136431 382l1 9823� 291545 832985 31.5i 13.69 GYB1411 �236106 -3.7� 271 1915 19M6 1�3ZT) 1a118 1Y3199 3Y617M A7478E 40.1i 15.91 5497386 �97825 -9.65 ?BI 19�6 1947 i5i1?3 �34 1aBaB9 326BY6 916SB9 4&fii 19.29 �752681 -74N&1 -13.55 " 291 l947 1949 156969 �3951 113i1B 335433 43B3B6 53.d8 21.15 45ii2i7 -2Z1�7S -�.66 3i1 1918 1919 f63B15 �S86B 117947 35Y164 lYY�11B1 53.Qi 21.i3 47�91 ?P1384 ti.95 � 311 1919 199� 17i661 477� 122976 36i69� iW11991 Si.ei 21.�3 486259� 116989 2.25 321 1950 1951 173899 4869E 1252i7 371612 1e617�8 38.70 23.29 h56B1a1 -3Y�N79 �i.26 331 1951 1452 1863'9i 32178 134t72 398� 1137T71 fi0.2e 23.89 ti7G2762 29Mfi61 �.49 3AI 1952 1933 197436 95282 142151 42191A 1c''06MSB 6a.60 24.&�i 5a1279S 258i33 5.25 351 1953 1951 2�I1Z1 6it44 14e976 418415 ►195473 99.90 ?3 77 5a29367 16572 .33 361 195M 19� �Y6966 59956 146M9 433353 1238152 61.30 2�..33 SBB9955 6Y6B8 1.2� � 371 1955 1956 213912 fi2712 15119Y 1�B73A 12B2�B5 64.8Y 25.71 49B5AB7 -li�86B -2.8A 391 1956 1951 2E4937 64386 iGO631 �767�9 1�31�1 66.1A 26.35 5169572 183685 3.68 391 1457 1938 234ti89 69579 164910 4A91Si 1398127 65.8� 26.11 53536Bi 186188 3.60 4�1 1959 1999 23391A 66612 167306 19fu`bZ 14187f9 66.2i Z6.27 510l677 M4997 &1 411 19.f9 19W 236i13 637A9 172301 511395 1461129 6S.8i 26.11 5595814 195137 3.61 �EI 196Y 1961 24/185 65985 178� 52E99� 151112b 6S.6O 26.A3 58�935 2l9121 3.74 � 131 1961 19G2 245716 63698 1B2i18 5W315 134373b fi6.2i 26.27 5876534 71599 1.23 411 19fi2 1963 2y9729 64913 181812 518519 136719s fi65� 26.39 5938956 62322 1.06 431 19G3 1964 249769 6M19 18892� SGi710 159YQ66 67.1Y 26.63 9973512 316.56 .58 161 196� 1965 2�6,�82 54913 191439 568185 1617065 GB.�Y 27.14 9957fii7 -19916 -.27 471 1963 19fi6 2y3123 Si9M 19�i13 571382 1652473 7r.8i Zl.li 3B916B2 -75923 -l.27 401 19fi6 1967 Z�i656 47391 193869 572996 1fiB9781 73..`A 29.17 3793534 -88149 -1.5Y �91 1967 1961 21893� 21Y71 197764 3l6959 175i27� 77.Bi 3i.56 5137974 -",�GY -96 � S�I 1968 1%9 222553 21965 211617 995339 184� A3.li 32.98 �991671 -147303 -�?.57 311 1969 197i ffi759/ ?271T 2M863 6ilIIE9 19.� 88.5� 35.12 5496346 -94.323 -1.69 S21 19T� 1911 26Y973 2�169 236BIQ 1�E7 21�lN/ 91.Si 31.5� 567B1l� 182lS�1 331 531 1971 1972 �i7414 2321i 2�22M 718B51 22P1635 1M.Yi 39.fi9 S'J9B�1 -79B8Y -1.�1 541 1912 1973 75E167 2.4386 726591 2lIB78i 2329i33 lYB.4i 43.02 5i1h356 -184164 -3.29 � S51 1973 1974 152471 Z61B2 726oB9 20Mi599 2513416 123.1A 49.6h 5123527 �2909r.''9 �5.37 561 191y lYJS 773118 2fi645 7�17 2i6�7 2727912 13B.Si 51.96 4963475 -15995E -3.12 STI 1973 1976 831731 Z47� 8i7129 2199P16 28247e6 141.5i 57.3� 4926131 -37344 -.75 SBI 1916 l917 971918 2�3Si 64799M1 2321147 29BAli� 157.6Y 62.5� 4777766 -l�A365 -3.A1 S91 1977 1974 884794 24841 BS99S4 2493B�A 3�i5124 176.5Y 70.�1 46G2249 -119517 -2.42 fi81 1978 1979 �21871 23872 899�'JB 2732674 3616908 199.6Y 79.21 4566437 -95912 �2.06 � 611 1979 l9Bi 1107499 2b991 1Y305�S 3iY3265 �Y5229! 2P3.Si 88.53 4577218 Ii7B1 .24 b21 19Bi 1981 1339742 29a12 131Y731 4781YiB �2237i 2ti3.2! 9fi.51 �996863 4196�5 9.17 631 1991 19BZ 1321249 3�3+1 149199i 513A229 �120 2S2.�iY 10%16 �19359 52Z496 1i.�6 WI 1982 1983 1fi651?2 31E42 1630879 5865797 S9BB535 232.6i lY�.ai S'lB853S 169176 8.5Y 651 1993 1991 17515M6 37197 1714349 fi3�1523 6367731 232.ei IN.BY 6367734 379199 6.33 671 iIVEiM�S 3BE3Y6 423� 31iYM 1l73B48 iBM199 Bir�3 31.9E 647171B -79l95 -l.22 � 691 1935-l9M 131b64 377l6 96958 2B777Y 8�29/ 26.32 1l.41 8L�9B5i -3B5232 -4.8i lti l94S:19S4 1GBB19 47425 1�SB3 357BB7 1i�536 52.29 2�.75 �9&i6AB -lZ4115 �2.59 711 19�i-1964 r3?8fi5 61232 169633 5�3�68 1431333 65.57 26.02 �19142 9y415 1.71 7�1 1965:1974 343245 320.45 31119i 9i139�► 197Y993 88.93 35.24 5fi27252 -�64 -i.Sl � 731 1975-198�1 1162361 28617 �133745 3T495A6 4z182�3 2l3.91 8�.93 5134571 124/31 2 42 T41 731 761D�D BY�119fW E. NII�EIiLY fOR TfE CITIZEt18 COMISSIOI ON BDOIt6 AIO FINAICItB PkNCTICES 771�T�ER, 1995 FILE:HISTORY.ADJ 791 -- � � Page C-6 � � ��`�/�� THE FINDINGS AND RECOMMENDATIONS of the � ITIZ S COMMISSION ON BONDING AND FINANCING PRACTIC S ___________January 22, 1986 ----- ----- - -------------------------- ------ ADDITIONAL TECHNICAL DATA � ----- ----- --------------------------------------------- ------ � 1 A 11 B II C II D II E tl F II 8 il H II I II J il R 11 L II N II N II 0 II P I 11 ZIBN6IC iqi �WTI01 � 31 FIl�i1NC2i� ff TFE CITY ff ST. PIIl. 61Yw� YNr pro��rty � Tatal Prnanil Propw�t Total Total tMal� Pe� � e1YA ws Payabl� ilon-fi�t Der Dis Fis Dis Ihal M�td NarMrit Pr�N Aswd Prp�y Prpry D�v Dis Fis Dis T � lil 1 145M 97't!! i � 14�976 E3f4 5771'! 6i141 2i11P1 �18�16 179163 i i 881 111 1 19S 49 lelB61 • � H60i9 2�39 57517 y99'16 2�4G6 432817 179692 i i 121 1 19.Zfi 1MB65 i i 13119� 2�65 6Y�2T fi2T1E 213982 MI6B2 189109 i i 1 l31 1 1957 433 113198 Y � l6i631 2323 61781 64�6 224437 473118 192738 0 i fi6 1�1 1 1958 4 116836 i � IW910 2�42 67197 64579 231489 187170 299Z99 • 0 6 8 � ui i iss9 iie�sz a • is� 2see �ue �a2 2�ie +� i� o a 161 1 19fiY 12248M ! � � 1723M � 6.�'109 6a'709 236ai3 �186 187667 0 0 6 � iTi 1 1%1 12A2T2 0 � 17829� 0 65985 67985 244L� S2ti936 194367 i 0 71 181 196 1962 43 131?Y3 i 1 182849 v 6.ib9B 63698 2437�6 S3ti869 187698 • i 7 191 1 1%3 46 l3�i367 0 i 18�Al2 Y 64915 64413 249728 5�1828 191391 0 0 8 2!I 1 1964 4M 138373 i i 18992! i 608�8 6Ol�B 249768 95271� 179896 0 0 73 l0 - � 211 1 1965 L4i798 i o 191438 O II4943 S19�i3 216.i82 �81� 161444 e e 9 2Z1 1 1966 14176'a v i 142513 i 5i901 309YB 243�23 561658 1�924a e e 71 99 231 1 1967 142231 Y 0 1930.54 0 17597 �7397 2Mi6.�6 �i27�3 133E12 A 9 781 2+i i� isse i�� a e isrrr� • aaen ue�i zieea+ �a�se �sri a e zsi i i�9 ia� o o ze�a� e usss . u� zz� � 6ze+s e e a �i i� is�e �s is�s e v ze+eea v. zzn� 2ztn zz�..se �+s 61169 o e ia � x�i i is�i iee��a e a 2.,68i3 0 2�169 2�169 � ea2r.�e r�sr e e � 2ei i�ri i9rz . ie�i+ a o 2+zze+ a zsu0 aaa z��i4 697697 �iwa e e 769 ' 2si i9rz isr� a � v e r�ei e � � �a ze+e�ae s�ei e e u �i isn i�+ i �� a o r�es4 e zsaez z� �2��i �ewsa9 bi� e e uei +� 311 1974 1973 1 967?87 1824 116Si 7502�1 0 26695 26695 776936 2&�2T fi20B2 1390 3�Y71 21 70 321 1973 1976 1 617777 l�i 20324 869382 O 2�702 24782 83�9M 2199P�6 57493 32�1 �7526 z307 � �i i�s isn i � a�e us9+ e+�s� e 2+u+ z+-u erue�zaziii� sr�i w�s se�e z �+i isn i�e ie� r+�+n e me+ e�ss+� a 2ae�i 2+s�i ee+�s+z+9:e+e s�eai o b�e z�i 9 �i is�re is� i m� m �s e%�es e a�erz �er� s�se zr.�+ 6ae� iaie 69918 ► 361 1979 198� 2! T 783176 170i 89412 103?P86 � 2b99� �i99� 1689149 3�Y3265 62782 4A54 68hA1 1 371 198� 19B! 775824 16923 3fB49 1321654 0 29ii2 2°�12 1356665 47816oB 67ti74 4l� 8337Y 4 3 381 1991 1982 1452317 33267 3�J673 1327�b � 3�359 32�9 1�4515 51382z9 7�27 B9B81 9?�fi2 36 � 39I 1912 1983 1SB1�B �6729 �8911 1677609 0 31242 31242 l711831 5865747 796� 122738 113747 6181 tii� 1983 198�► 1676M1BM BZTIV 57863 1797� Y 37147 37147 1834236 62YIS23 85513 16fi205 134Ni9 3 4�31Bi1SIC Tqt� I OI WIi}q(f FISfiL DI9PNNITIES Ofl PERSO�P�Y �SI�Es F NAICIiL OF TNE CITY ff ST. PfNL � 4�71Y� R�1 ��tt� Total P�rsanil PeopRt Tolal Total R�al Prsn�l � 681Au�s lt flstd Dw+Dis Fis Dis Rnl Nstd Non-+Ist Pe�snl �Sd Prpty Prpty Oev�is fis Ois Total 191 501 � S11 1974 1973 1 �T38T 1824 i 73�91 ! 26b95 ffi695 T62PB6 2BS99�T 0 �390 0 206431 52f 1975 1976 1 617777 t3Si 0 788053 0 24702 2M792 8127�219�246 A 324t 0?�02 531 1976 1977 1B� 6429�6 2..'8 v 8�6237 Y 2h�S1 2tia'i4 850591 ?321147 1 449 0 2321 II41 1977 1978 1867 64.i478 A i 830�8 0 248�1 24841 A3599! 249304a e e 0 2443 331 1978 1979 1 • 672932 787 A 866729 0 �872 23872 89E393 2732b74 0 1818 0�449 �i 1979 1480 21791 T83176 178v i 1682793 8 2699� 26994 1029787 34@3265 0 4A34 e.,aeri � sri i�ee i9ei rr°.,e2� i6� e i24iees v z�eiz 2seiz i�eeib+�eieee e +i:�z e aa22:,s �si isei i9ez i+szi� � o ias��, e �s � iaaeaa 5�aazz9 e e9eei e�2eii s�i i�z i� i�i�a +�rz� e ie2e6� � �2�z �z+z i�we ses�� e izzr:s e �i i� ise� i�en e�ria e i�i� � �ris� �is� iriw-9z 62eis2s e i� a w6rr� 611 fi21 6i1P�D �fill E KI Y � 6yIFOR Tif CI ZQ15 COlMI ON OEI BD�IlB WO FiNANCIN6 PIMiCTIC6 6310CTOBFA. 1 661FILEs TiiX 671 � � Pa e C-7 g � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 ---------------------------------------------------------------- _-______ ADDITIONAL_TECHNICAL DATA � ----------- ------------------------ I il II 8 II C 11 D II E II F II 8 II II II ! 11 J �1 R II L II M II N II 0 I � IYITI��ElPLOY16R IETI�ITpI(11�1 CdPANABLES �1iCITY ff SAINT PiIL 9�: IETI�d.ITiM CQICIL � i31��sSi PALL ECOOIIC tPDNTE 441 461Yur EaP1op M�f9 9�v fItE Ca�k�� lOfi� Eaplcp MM9 9wv FI� Cart�Od� lOT(� 471 ��91N11�5 5�11 t4f8 191 34 41 13 6 77 191 1M3 2�2 216 6S 43 �77 1M3 321 1979 191 54 42 13 6 76 191 1i94 2St 233 6B 47 M�1 _1i91 531 1911 191 5ti M 13 7 74 191 1111 249 2�3 71 46 5M 1111 � 341 1981 191 Si M6 13 6 73 191 11�9 247 ?31 74 M �97 -lli9 Sil 1982 la3 S1 4S 13 5 69 iB3 1� 23S 233 7� 36 4B3 1l9� 361 19e3 1B� 31 M 13 5 66 1Ai il9S 238 �2 76 37 4gi ti98 571 198� 187 33 47 lM 6 6B 1B7 117Z 25T 2M B� M S11 1172 361 - � 391PE]CBIRI�.4 � G6911 1978 � 21 7 3 M 1M 23 21 6 4 46 1i� 6E1 1979 20 22 7 3 4� tY1 23 21 6 4 �5 Ii� 631 19A� 2B 23 T 3 39 1N 22 22 6 4 15 Sei 611 1991 21 2� 7 3 3B 1M 22 23 7 4 IS lii 6sl 1982 2S 25 7 3 39 1N ?2 23 7 3 �5 1M � 661 19e3 2A 23 7 3 39 l!� 2Z � 7 3 N IM 6�7i 1984 2t 25 7 3 36 iM �E 2� 7 ♦ M 1M 6910W1� 7!1 711 1979 � — � — — — — � — � — — � 721 1979 ! 1 i i � � 1� iT �3 4 1T S1 731 19E� -1 2 � i � -3 i -3 12 3 -i S 16 7ti1 t9l1 -! 2 i -1 i � -2 6 3 -6 -3 -2 1S1 19l2 -Z -! � -! -4 -! -9 2 � -� -!� �25 761 I9l3 -! -1 1 � -! -3 � 9 2 1 2 1� 771 1984 3 2 1 1 i 7 19 18 4 7 26 74 791piiE ff d� � �I 19�79 � 2 3 1 • � 4 7 4 9 4 3 631 19l� � 6 1 6 -� • -1 S 4 �2 1 1 � 811 19lell -1 ♦ ,� �-12 -1 � -t E 4 -1S -1 i !SI 19lE � �1 -1 -1� � i -4 1 � -11 -3 �E ffiI 19dt �2 �2 ♦ -� -! -1 � 3 3 3 � t B71 19l1 6 5 S 11 � � 7 6 S 16 5 6 �Ip�s -.5! 2.M .W -1.13 ,Z.1! -.�1 .93 4.21 3.39 -.19 1.11 1.e9 9110vw�a11 tT�nqr -1 6 1 � -9 -4 15 61 15 1 34 129 � �IPetekay� �2.6! 13.75 4.19 -4.64-lLti9 -Z29 6� 29.63 23.IS 2.33 7.11 12.39 411 451P(�IMED BY S113W E KII�ILY 961f�pd{1�g1�!E1�CITIID�R COMI�I01 01 800Ii6 AI�FII�CIi6 PBACRffS � %IFILE:CITY.A 491 1i~1111aAF11CItMtI I� INIY� ��Total Nnfy Narly Total Y� IMrt�11�TaRal IY��NarMy Total � 1161 3Y18 Si 137 191 2B 72 IM 21Y B�1 fl13 23 77 IM 1/61 1979 3� 137 191 2B 72 lYi 232 8i2 1Y9/ 23 77 li� 1i71 198� 51 137 191 � 72 1M 2ti9 B62 I111 22 78 1M 1M1 1991 Si 137 191 2B 7� 1M 2�7 862 11�9 22 78 lY� � 1�91 19e2 51 132 !83 2! 72 fi� 23B BK► 1�61 22 7B iM IlYI 1983 SI 131 18� 2S 72 1N 23B 8fi� 1098 2P 78 li/ 1111 198� 53 131 197 � 72 IN �57 915 1172 2S 7B lii 1121 �� Page C-8 � ., _ ,.:' ..:. � � THE FINDINGS AND RECOMMENDATIONS of the ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC � __January 22, 1986 ADDITIONAL TECHNICAL DATA � ------ ---- ---------------------------------------------- ----- � 1 A II B II C II D II E II F 11 8 II N il I II J II K I 211WBI16 IiCCTS � 31SQNM�Es ITY PI�ILES, A P�blintian of th�M�tropolitae Corncil 61f1�of 'n�by Y�r B�ilt DRCwkags 71 9�yi f�IMIt F�Total M Aiw Sn�l F�Mrlt f� 911939 ar lia� 3S7l4 16SIi 5229� — 6/ 3t � �iis�-i r.� aia tiai� . iiee r� � ii i i�-i i� s�s i� ise� �s a �2�i�- i 9 �e i� i+�es �� 2� n 1311YA-1 2395 9171 1136b 1157 21 79 131Takals �SS �7IM 1162P3 S6 M - � 171 19A 19l� 1Alllousin� 'ts iy Ty�e Units Pv Gnt IY�its Per Gnt Un� Da�Cw+t 191 - ISingle Sl916 32 S71l1 32 1265 2 � ISinql�At B�1 1 1�6 1 733 94 IDoimie Un 16196 13 12353 fl -3W1 -2S 13 to� s 63Y3 6 Si2� 3 -983 -!6 ♦13 ar�ore its 26/3b 26 34132 31 3676 20 IMobil� 22 i 96 i 74 33b I � ITotal Unit 1i769� SM S1l91i 1M 31�6 3 I I INou�holds I�e Distributian f1919) 1 Monthly 1 Units Dar Gnt 23x Equiwle�ks � Is9999 or 1 326�8 31 2i! ' If10Bii- 1 32185 3i' 21! �17 N2iiii- 2ZA97 22 417 625 IA�AIli-4 1�M2 14 62S IM2 H6YYM or h qhw� 3013 � 1M2 1 � irotai as i�in iw i 4 I Nonthly Hoasin�A�ou�t IlYdim ld Inc� SGY29 33� IMdia�Fa�i Inca�e 2�743 13� M � 43 Nental Unit by Makhlr tinit (1981) Orne-Oceupi�d Units by Valu� 119Bl1 46 Monthly [ �7 �t 12 pK 4B Units Pv Cwit U+its P�r Cwd 49 f199 ar 21317 �7 f39999 ar laMr lZei7 2� 5Y f29�-249 1113+1 2� f�00ii-�9999 t1126 22 4M � 51 s23i-299 7463 !6 fS�i-7�99 22811 �5 SN 321 -399 �Si2 li fB0011-99999 2913 6 80i 331 ar Hi -13BB 3 f100Y6i ar Highe� 1853 4 186i 541 SI otals �5774 10� Totals 5i7� l0i 36l � 571 ian Monthi Nent 2�7 6Y1 BY E. NIl�F1�Y 611 TFf CITI CdMISSI01 OI BOOI16 AIO fINANCIt6 PRACTICfS 621 l 631 ILE:IiSfiFACTS � WI � � Page C-9 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � January 22, 1986 ---------------------------------------------------------------- ___ ADDITIONAL TECHNICAL DATA � � 1 11 II B II C 11 D il E II F 11 8 I � 21HQJ6I16 PAODICROI 31SQMIf�:SAINT PAlL I�1SI16 FAC15, A Publicatian of M�PED 41 SISin�l�F�uly Ho�sin� � 61 t of AIYOwrtw� 1 2 3 4 ToRal TPrad 91 lil 1918 34 8S 1i1 e3 3Zi 35 111 1979 34 64 7B 57 233 34 _ � lEl 19B! 26 37 Si 7r 183 29 131 1981 lY 3� !Y5 72 E21 2S 141 1982 2� 33 31 32 122 21 l51 1953 14 18 3� lA 8i 8 161 1984 � 2T �1 I7 li5 I1 " 181Totals 182 3Yi 436 349 1267 � 191Pw�Cent i� 2M 34 2B lei 2il 231Mniti F��ly Housin� 221 t of 2116u�rtR I 2 3 ti ?ota! TProd �i t5re i� � zs�► 2� 5s� �s � 271 1979 103 lei 227 13 N3 66 291 1986 d39 2B 3B 34 �39 71 291 1991 19i 51 238 169 bfiB 75 � 3il 1982 59 303 � 41 69 �72 79 311 1983 S55 17e 27 t6Y 912 92 32� 1984 !6B 35 3�3 335 8B1 89 331 341Totals 14225 72! 1189 1i73 4� 331Per Cw�t 32 16 27 24 10Y � 361 371Tata1 Ho»in�Prodoction �I 391Yer �IQwrter 1 2 3 � 1ota1 421 1978 6S ils 355 378 916 � �31 1979 t31 164 316 1i 676 �SI l�l 2�Y� � 363 2�1 � wi �9ez a� �e rz iei ss+ 471 1993 569 18B 57 17B 992 � 181 198�/ 1B9 62 3B4 s,'S2 9A6 491 S01Totals 1607 IiEi 162� 1A2� 3675 S11Per Cwit 28 l8 29 25 l0i 521 531WI�Ii�U BV SUSAtl E RIMBEH.Y S11r0A?"E CITiiEh3 Cf'li MISSION ON BpOIN6 i10 FINAlCIN6 PRACTICES � �IFILE:PR�OUCF 571�R� 19BS � � � Page C-10 � � ��r� � , THE FINDINGS AND RECOMMENDATIONS of the ITIZE S COMMISSION ON BONDING AND FINANCING PRACTIC S � January 22, 1986 ADDITIONAL TECHNICAL DATA � ------ ---- ---------------------------------------------- ----- � I A 11 9 II C II A II E 11 F II B II N II I II J II N II L I 2ia�aen n uowcs+ffr 319Q�ICE: SN IR PfML Hp6I16 F�Ci'J, il P�lication of th�PED � 41 1 IMw�ye Rtice I IYw� Airwl 19urt� 1 2 3 1 Ave�ye � 1 I 19�M 36 �W 61 59 3�9 1 I 19l2 69 69 60 G�B 6A t I 1413 W fi9 69 -67 67 � 1 1994 EB 69 67 7� 69 - 1B 19 2f A��e Sai Pria Aa�lrsis N�tro IMjion 21 1983 t IMdian 1985 f Ratio lYdi� 19A6 f - 22 Sal 1995 f Mw�a� faily 14di�n Dria/ Fauly Media � 23 Yer Dri C.P.I. Prin Inrore [ncae Incae Inoo� fecae � 231 197i 21 37 � !1 29 1.99 12 32 261 l971 22 39 56 12 31 1.91 14 33 271 1972 24 �Y 6Y 13 33 l.B3 1S 38 201 1973 23 43 57 11 3� 1.71 17 39 � 291 1974 27 47 57 16 33 1.73 1B 3B 3il 1973 3i 32 39 17 32 l.8i 2i 38 311 1976 33 S 39 t8 33 1.83 21 3B 321 1977 �i SB 6B 19 33 2 le 23 39 331 l979 47 63 73 2i 32 2.33 21 3B 341 1919 53 70 75 21 3i 2.47 26 37 � 331 19Bi 99 79 T� 22 . 20 2.63 27 34 361 1981 61 89 73 2� 29 2.62 29 . 34 371 1982 fi9 93 73 23 27 Z 71 31 33 391 1983 67 % 7i 26 27 2.fi2 32 33 391 1984 69 SN 69 26 26 2.fio 33 33 MYI � 4ll �21 ly p i i 1ysis �31 Nvera Medi� Mortq�ge Monthly INdiaa Per CeM 19SS f 1995 f Per C�nt MI Sales F�ly Irdw�st p i i Monthly Moethly l913 f Monthy Monthly Monthly �SIY Pria lnco�e Rste (Lauk Inca� Ineo�e GP.I. Wyrnt Inrow Incae 461 � 471 197i 21 11 B.Si l61 916 17.83 37 432 2122 17.83 �81 14I1 22 12 7.73 ISB 1012 13.73 39 4�1 2�79 13.73 �91 1972 24 13 7.73 172 1i99 1S 6S 4i 427 2720 15.63 SYI 1973 25 11 8.23 IB8 1196 13.71 43 439 2141 13.71 5ll 1974 27 16 9.23 222 129Z 17.19 �7 h6B 2721 17.19 321 1975 3Y 17 9.25 2�7 13BB 17.78 32 �76 26BY 17.78 � 531 1976 33 IB 9.0i 266 1485 17.99 � 1B4 2719 17.89 541 1977 4� 19 9.Bi 322 ISB2 28.33 59 �2 2T11 20.a"f 551 1978 i7 29 9.75 4W 1678 24.86 63 6�3 2672 24.a6 561 1979 21 12.25 S13 1773 29.A0 70 737 254� 29.8� S71 1980 9 22 N.� 639 1972 37.35 79 8B! 2359 37.35 581 1981 24 16.50 B86 2023 h3.83 99 1012 2318 43.93 � 391 1982 25 15.13 901 2096 h2.97 93 %9 2256 h2.47 6�1 1993 7 26 13.Si 767 213� 35.47 96 Bei 2224 35.97 611 1984 26 13.eY 7@3 2197 32.�2 l8i 703 2197 32.8�2 621 631 641P BY E IlIl�EALY � 6SIFOR THE CITIIENS ISSION ON BOIOINB filO FINANCINB DFWCTiCES 67IfI •AFFORD� 681 r � Page C-11 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � ------------------------January 22, 1986 --------------------------------- ADDITIONAL TECHNICAL DATA ---------------------------------------------------------------- � � I A il B 11 C II D II E II F II G II H il I I • � 21AIMlfL INVEIITORY ff PlBLICALLY ASSI57ED La1 IlCOIE 11�15IN6 31Sd1AtEsPED HalSIN6�IVISION 41 51 � 61 Progra� Curultv 71Year Cmmtnl Sec 282 Sec 2Z1d3 Sect 236 Sec 8 Totals P�r Cent iotat 81 91 101Prr1976 3670 523 �52 1843 A 6488 76.07 6�168 111 1976 3�B A 8 10B 8 4,i0 5.88 69f8 � 121 1977 0 105 0 A 216 321 3.79 12.�'4 - 131 1978 e e e e 2z7 227 Z 68 74fi6 141 1979 e e e A 2S5 25S 3.01 7721 131 19M • 129 Y 168 18S 473 5.54 8194 161 1981 A 0 � I! 16A 168 i.B9 8354 - i�i i9ez e e e e z� z� .2� ean � iei ise� a e e e se sa .bs e+as i9i �9ea e a e e z� 2� .� ea6z �i 211Tota15 4� 748 . 452 2111 1151 8462 l80.00 221 Per Ceeit 47.P7 8.84 5..i4 24.95 13.6A 188.d� 231 � � � � � � � � Page C-12 • � � �,� r��:.� � r � . r . � � � � � � � THE FINDINGS AND RECOMMENDATIONS � of the - � CI IZENS �COMMISSION ON BONDING AND FINANCING PRACTICES January 22; 1986 i � APPENDIX D � � SUMMARY REPORT � � . . � � � repared on Behalf of the Commission By � SUSAN E. KIMBERLY Staff Consultant to the Commission � � � Page D-1 � �'G��.�s�� THE FINDINGS AND RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES � SUMMARY REPORT January 22, 1986 � � � , APPENDIX D � SUMMARY REPORT FIND �iGS AND REC�MMENDATIONS OF THE COMMISSION � � � � � P epared on Behalf of the Commission By _ SUSAN E. KIMBERLY IStaff Consultant to the Commission � � � � � � Page D-3 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 . � SUMMARY REPORT FINDINGS AND RECOMMENDATIONS OF THE COMMISSION � � In order to evaluate the City' s Economic Development program, the Citizens Commission on Bonding and Financing � Practices carefully reviewed the City' s existing Economic Development policy framework and carefully considered activities and performance relative to this framework. Based on its review, evaluation and study, the Commission finds: - � In the judgement of- the Commission, the City has developed and followed a comprehensive policy framework that � addresses the major goals, policies and objectives of the City's Economic Development program. Furthermore, the City has been generally successful in attaining the specific performance goals set out in its policy framework. � In more specific terms: l. In the opinion of the Commission, the City has used � the financial tools available to it wisely and prudently. Moreover, the Commission finds that the City has accumulated a � significant level of financial resources which will enable the City to maintain its Economic Development program even if many of the tools it has employed in the past are eliminated or restricted by state or federal action. � 2. The City has been successful in defining its role in terms of serving as a facilitator and guide to the private � sector. The City's Economic Development program is characterized by a wide variety of public-private partnerships that have enabled the City and the private sector to develop a broad range of Economic Development programs and projects. � 3. The City has been successful in minimizing its own financial participation in the Economic Development process and � it has been successful in reducing and minimizing the level of risk assumed by its citizens for the conduct of the City' s Economic Development program. 4. The City has improved its credit rating and reduced � Page D-4 � � � /_;/.�"' � � THE FINDINGS AND RECOMMENDATIONS of the CI ZENS �'�COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 the leve of g neral obligation. debt associated with Economi � Developm nt ac ivities. 5. T e City has made remarkable progress in increa ing its prop rty t x base. � 6. D ring a period of substantial economic instabi ity and stre s, th City has been successful in maintaining the � level of emplo ent in the City while significantly enhancin its pote tial or job creation in the future. Given this promisin pote tial, the Commission recommends that the City increase its phasis on job training and job placement prog ams � as well s con ider other initiatives having the potential o providin incr ased job opportunities for the City's economic lly d sadvantaged_ citizens. � 7. T e City has assisted a wide variety of busines es in a wid vari ty of ways. The City has been generally . successf 1 in etaining existing businesses, attracting � business s fro other locations and assisting new business t become e tabli hed in the City. � 8. T e City has established an ambitious goal for housing roduc ion during the 1980 's and is essentially on t ack toward a taini g that goal. � 9. T �e City has been successful in providing a var 'ety of housi g opp rtunities affordable to a broad range of inco e levels. Only uring recent years has the City' s ability to � provide cwer 'ncome housing opportunities been stifled by policy c anges at the federal level. For this reason, the Commissi n rec 'mmends that the City make a special effort to � maintain its e 'isting supply of housing affordable to lower income h useho ds and that the City consider the establishme t of a Hou ing T ust Fund as a means of providing additional resource for 'roviding additional lower income housing � opportun'ties. 10. Tle City has maintained an aggressive and � successf 1 pro ram of neighborhood maintenance and revitalizationj The C mmission also makes the following recommendati ns � in terms of ea '�h of the City's fundamental Economic Developm t policy s teme ts: � � Page D-5 � - � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 POLICY STATEMENT THE CITY'S STRATEGY FOR ECONOMIC DEVELOPMENT � In order to fulfill its goal and attain its objectives, � the City has adopted a "market responsive" Economic Development strategy which incorporates a very wide range of activities and is consistent with the relatively broad terms used by the City to define its role in the Economic Development process. Under � its present strategy, the City looks to the marketplace for most development proposals and financing plans. Market forces and economic trends have more weight under the present strategy than � the redevelopment plans of the past. In economic terms, this strategic shift is largely the result of a considered decision by the City to alter the method � of financing Economic Development activities. The City determined to maximize its use of revenue bond financing . techniques, non-matching grants and Indirect Investments while � minimizing its use of general obligation bonds and Direct Expenditures. FINDING � The Citizens Commission on Bonding and Financing Practices was created because a series of federal legislative � initiatives seemed to pose a serious threat to the City's ability to operate under its flexible, market-responsive Economic Development strategy. After nine months of intensive � study of the City's Economic Development activities and practices, the situation seems somewhat less threatening today. In all probability the City's Economic Development program will have to adapt to new rules and regulations but the City's � essential Economic Development strategy will remain viable. A major finding of the Commission' s Study is that the � City has accumulated an impressive level of Economic Development resources and, if properly structured in order to maximize long term benefits, these resources will allow the City to conduct a broadly based Economic Development program under foreseeable � circumstances. COMMISSION'S RECOMMENDATIONS � NO CHANGE IS RECOMMENDED. To the extent possible, the current policy should be maintained. � Page D-6 � � � �6 �/,31.�` � , THE FINDINGS AND RECOMMENDATIONS of the CIT ZENS COMMISSION ON BONDING AND FINANCING PRACTICES � SUMMARY REPORT January 22, 1986 POLICY, STATEMENT � T E CIT 'S ROLE IN THE ECONOMIC DEVELOPMENT PROCESS FINDING ' s di cussed below, the City has been generally successf 1 in �ulfilling its role in the Economic Developmen � process. In th ' opinion of the Commission, the City' s success in , fulfillin thi � role has, in fact, significantly improved the City's Ec nomi Development circumstances and, as a result, t e City is i a p sition to give a higher priority to addressing the econo ic n ieds of its economically disadvantaged citizens. � The chang s re nmmended by the Commission reflect this higher priority or a �sisting the City's economically disadvantaged residents as w 11 as providiflg recognition at the policy leve - of the co cept ' f economic self-reliance. � POLICY STATEMENT � HE CITY'S ECONOMIC DEVELOPMENT GOAL C MMISSION'S RECOMMENDATION FOR CHANGE � n ord r to reflect a greater emphasis on providing assistanc to e onomically disadvantaged St. Paul citizens, t e Commissio prop ses that the City consider adding appropriate � language o its ,goal statement. POLICY STATEMENT � THE �CITY'S ECONOMIC DEVELOPMENT OBJECTIVES C ISSION'S RECOMMENDATION FOR CHANGE � onsislent with its preceding recommendations, it is the opini n of he Commission that the City should consider 1 adopting dditi nal objectives reflecting the needs of its economica ly di 'advantaged citizens, protection of its natura environme t and �the concept of economic self-reliance. � THE CITY' FUNDAMENTAL ECONOMIC DEVELOPMENT POLICIES he Co ission' s findings and recommendations relati � to each o the ity's fundamental Economic Development policie are prese ted b low. � Page D-7 i � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 POLICIES RELATING TO FISCAL INTEGRITY AND FINANCIAL RESTRAINT � POLICY 1. Credit Rating. The City will seek to obtain and � maintain a "AAA" rating in order to reduce long-term interest expense on its obligations. FINDING � The City's credit rating was upgraded by the Standard � and Poor' s Corporation from "AA" to "AA+" in 1984. NO CHANGE RECOMMENDED. POLICY � 2. Financial Condition. The City will seek to - maintain the fiscal integrity of its operating, debt service and � capital improvement budgets in order to provide essential services, maintain public infrastructures and promote the expansion of the private tax base. � FINDING In order to maintain the fiscal integrity of its � operating and capital expenditure budgets, the City has adopted and follows a comprehensive and integrated set of policy guidelines which have been instrumental in maintaining and � improving the City's financial condition. The Commission finds that the City's policies in this area are thorough, thoughtful and effective. NO CHANGE RECOMMENDED. POLICY � 3. Overlapping General Obligation Debt. The City will � reduce its per capita overlapping general obligation debt ratio to a level of $900 or less by 1985 and reduce its overlapping debt as a percentage of Estimated Market Value to six per cent or less during the same time-frame. � FINDING � According to the 1982 General Obligation Debt Status Report, the most recent report available on this issue, the City had achieved its specific goals for reducing overlapping general � obligation debt. As noted above, this policy was instrumental Page D-8 � ' , �. � ��>.�. THE FINDINGS AND RECOMMENDATIONS � • of the CIT ZENS iCOMMISSION ON BONDING AND FINANCING PRACTICES � SUMMARY REPORT January 22, 1986 in causi g a r definition of the City' s underlying strategy or ' financin Econ mic Development activities. Unable to depend upon gen ral o ligation bonds for these activities, the City began to use a wide variety of financial alternatives. This � strategi shif � resulted in City taxpayers assuming a declin'ng level of risk or an increasingly expansive Economic Develop ent program. NO C ANGE RECOMMENDED. � POLICY 4. M 'nimal Direct Financial Participation. The Ci , will mini ize �t�s own, financial involvement in private Econo 'c Developm t ac ivity and will utilize its limited fiscal resources effi ,iently and prudently within leverage and retur on inves ent riteria established by the City. � FINDINGS . he C'ty's level of general obligation bonds � outstandi g fo Economic Development purposes is lower today than it w s in 1975. Moreover, the City also utilizes a lowe level of irec ' expenditures in support of its Economic � Developme t ac ivities than it did ten years ago. Based on these fac s an „ in light of the fact that the City's credit rating ha bee , upgraded recently, it is the opinion of the � Commissio that the City has .been successful in minimizing it own finan ial i� volvement in Economic Development activities nd has used ts li ited resources efficiently and prudently. NO � CHANGE RE OMMEN ED. POLICY � . Fi ancial Leverage. Minimum leveraging is norma ly 1:6. (Ea h dol ar of public investment should leverage at le st six dolla s of rivate investment. ) This ratio may be as low as � 1:3 if th proj ct is: a ' Directly associated with concentrated neighborh od re italization efforts. � b Creating permanent jobs within the City. � c ' Directly associated with conservation of non-renew ble e ergy sources or development of energy efficie t alternati es. � d Directly related to the development of low nd moderate 'ncome 'housing. � Page D-9 � � THE FINDINGS AND RECOMMENDATIONS � of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 FINDINGS , Z'he Commission finds that the City's economic Development program has consistently exceeded its financial leverage policy. � COMMISSION'S RECOMMENDATION FOR CHANGE In recognition of the growing need for child-care � services within the workplace, the Commission does propose additional language be inserted in this policy in order to encourage developers to include day care facilities within new , developments. MiNORITY REPORT _ � A minority of Commission members propose that paragraph "b" of the above policy statement should be amended to read: � b. Creating jobs for City residents. � POLICY � 6. Return on Investment. The annual return in the form of new property tax revenues shall be, at a minimum, 12 per cent of the City's investment unless the project is directly � associated with the enumerated exceptions to the leverage policy. FINDINGS � The Commission finds that despite generally decreasing � tax rates, the City's return on investment exceeds its policy by a substantial margin. Moreover, when measured in terms of taxation by the City, the county and the school board, the Commission finds that the City's Economic Development program � has been self-sustaining for 15 years. COMMISSION'S RECOMMENDATION FOR CHANGE , The Return on Investment policy serves two purposes: 1. It serves as minimum guidelines for members of � the PED and Port staffs in evaluating and analyzing specific development and redevelopment projects. For this purpose, the policy is reasonable and should not be changed. � 2. The policy also serves as a yardstick for use Page D-10 � i ,s � �'� I��.� � THE FINDINGS AND RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES , SUMMARY REPORT January 22, 1986 by other membe s of the City staff in analyzing and evaluati g ' overall erfor ance of the City's Economic Development progr m. For this purpo e the Commission recommends that the followin measure e use and incorporated into City policy: , Cover ge Ratio. Net investment measured in terms o the annu 1 cha ge in the Estimated Market Value should gener te addition 1 pro 'erty tax revenues at current rates at least e al � to the c rrent direct costs associated with the City's Econo ic Developm nt pr gram. In making this computation, the tax le ies of the C ty, t e School District and the County should be ta en , into acc unt. POLICY � 7. M nimum Return. Projects associated with the enumerat d exc ptions to the leverage policy are subject to he followin mini al return policies: � � a. I no case may the return in terms of tax reven es be less han t e cost of additional services required. � b. I all cases, additional tax revenues generated from a p oject shall be sufficient to �repay the City' s ' investme t ove ' the course of the lifetime of the asset provided. � FINDINGS In as much as these policies relate to specific projects, no a tempt was made to analyze them on behalf of t e � Commissi n. H ever, it is the opinion of the Commission th t they rep esent prudent policy and should be retained. NO CH NGE RECOMMEN ED. � Property Tax Base Increase � POLICY 8. T x Base Increase. The City shall seek to incr ase its tax ase a an annual real-dollar growth rate of at leas � two per ent o the City' s Estimated Market Value. FINDING � The c rrent rate of growth of the City's tax base, ' Page D-11 ' . � THE FINDINGS AND RECOMMENDATIONS � of the ' CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 especially when measured in constant dollar terms, is impressive , for several reasons. The current growth rate is substantially higher than the two per cent real dollar growth rate adopted by the City as its policy goal in 1980. The City's average annual growth rate over the past decade surpasses past performance by a ' significant margin. Since 1914 the average annual rate of change in the City's constant dollar tax base over the past 70 years has been approximately zero. Moreover, the current , growth-rate trend reverses a 15 year period of tax base erosion and this turnabout appears to be directly related to the City' s Economic Development activities and its revised Economic Development strategy. NO CHANGE RECOMMENDED. , POLICY 9. Non-Residential Tax Base. The City shall make a ! special effort to increase its non-residential tax base in order to minimize the tax burden on City residents. FINDING � As a percentage of adjusted Estimated Market Value, the � percentage of residential property peaked in 1980 at approximately 80 per cent. Since that time it has trended downward to approximately 75 per cent in 1986.. NO CHANGE , RECOMMENDED. POLICY 10. Maintenance of Existing Tax Base. In order to maintain , its existing tax base the City shall discourage the use of acquisition as a redevelopment tool � FINDINGS The recent activities of both the PED and the Port are � consistent with current policy. The total level of acquisition has been reduced substantially and the funding of acquisition activities has shifted away from Direct City Expenditures toward � Indirect Investments. As a result, the taxpayer no longer incurs all of the risks associated with the acquisition of real property in anticipation of speculative development activities. NO CHANGE RECOMMENDED. ' , Page D-12 � � 1 � ��.. ' ' THE FINDINGS AND RECOMMENDATIONS of the THE C TIZE }5 COMMISSION ON BONDING AND FINANCING PRACTICE � SUMNiARY REPORT January 22, 1986 POLICIES RELATING TO ' �A STRONG, DIVERSIFIED LOCAL ECONOMY POLICY , 1. J b Opportunities. The City shall seek to incre se the numb of �ob opportunities available in the City and attempt mai tain a 25 per cent share of inetropolitan regio al � employmen . FINDING � urin � a period characterized by economic instabilit and econo ic s ess, the City has been successful in maintain'ng its job b se i numerical terms, but its policy goal of � maintaini g a 25 per cent share of inetropolitan area employme t is both u reali tic and unattainable. Data examined by the Commissio indi ates that the City' s share of inetropolitan ar a - � employmen is d creasing and will likely continue to decrease for the f resee ble future. � C MMISSION'S RECOMMENDATION FOR CHANGE ased n its analysis, the Commission recommends the � following langu ge as a replacement for existing City policy: Jo Opportunities. The City shall seek to incre se the numbe �of j b opportunities available in the City. The C ty , will atte pt to ;achieve a goal whereby City Covered Employmen will equa or e ceed the level of employment projected for th City of S . Pau by the Metropolitan Council of the Twin Citi s � Area. MINORITY REPORT lthoul�h there was consensus on the Commission as to � changing he qu ntitative measure appropriate to this policy, there was disag eement on the policy's first sentence. A ' minority f the Commission preferred to change the first sentence f thi , policy to read: � 1. Jo ' Opportunities. The City shall seek to increa e the number of j b opportunities for City residents. Issues ,relating to the following three policies � � Page D-13 ' � THE FINDINGS AND RECOMMENDATIONS � of the THE CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 generated considerable discussion among members of the Commission. ' POLICIES - 2. Equal Employment Opportunities. The City shall , maintain its commitment to Affirmative Action principles and take those steps necessary to assure that the City' s low-income and minority residents share in the City' s economic growth. ' 3. Job Training and Job Placement Programs. The City � shall continue to expand its involvement with job training and job seeking programs and should more closely integrate these activities with the City's_ Economic Development program. - � 4. Subsidy Allocation. Special consideration, . including project subsidy allocations, should be given to � projects that will retain existing jobs or create new jobs within the City. FINDINGS � The City provides assistance to commercial and industrial firms and businesses in order to achieve two primary � goals. First, the City seeks to increase its property tax base and, second, the City seeks to increase the level of employment within the City. The Commission' s Study indicates that � increasing the tax base is a relatively direct and uncomplicated result of increased real estate development. Increasing employment in the City is relatively more complicated. Given the fact that the City's level of employment has � remained stable over the past several years and given the fact that the City has lost several major employers during the same � period of time, it is apparent that the City' s Economic Development program has created a substantial number of jobs during the period. ' The development of real estate which produces new , and/or expanded industrial or commercial facilities does not -- in and of itself -- generate additional jobs, however. Rather, � this development produces the potential for the creation of additional jobs. Targeting these new jobs directly to City residents most in need of them is an even more complicated process. , Page D-14 � � , � ,�a �C',,'� � ' ' THE FINDINGS AND RECOMMENDATIONS of the THE C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE � SUMMARY REPORT January 22, 1986 n li �ht of this complexity, there was consensus amo g , members o the �Commission that the City could and should do m re to assist �econ ically disadvantaged residents find employmen . There was sign'ficant disagreement, however, on just exactly ow , the City houl ' go about doing so. MMISSION RECOMMENDATIONS FOR CHANGE AMENDMENTS TO EXISTING POLICIES , POLICY ' . E al Employment Opportunities. The City shall maintain ts co itment to Affirmative Action principles and take thos step, necessary to assure that the City's low-inco e and minor ty re idents share in the City's economic growth. � C ISSION'S RECOMMENDATION FOR CHANGE - ' he Co ission proposes that the following language e added to he ab ve policy: � t is he goal of the City, through its Economic Developme t act vities, to achieve equal job opportunities fo all of it resi ents. Toward this goal, the City will strive to � achieve a rate f employment among women, racial minorities a d handicapp d per 'ons that is equal to the rate of employment f r that of i s pop lation as a whole. � POLICY . Su sidy Allocation. Special consideration, � including proje t subsidy allocations, should be given to projects hat w �11 retain existing jobs or create new jobs within th City � � e Co ission proposes the following language as a substitute for 'he existing policy language: ' 4. Su �sidy Allocation. Consideration, including project su sidy ,allocation, should be given to projects which will retai exi ting jobs or create new jobs for City resident � and specia con ideration. should be given to those projects or programs w ich reate job opportunities targeted for economical y di advantaged residents of the City. � ADDITIONAI, PROPOSED POLICIES � Page D-15 i � THE FINDINGS AND RECOMMENDATIONS � of the THE CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 AFFIRMATIVE ACTION, FIRST SOURCE EMPLOYMENT � AND SET ASIDE REQUIREMENTS COMMISSION'S RECOMMENDATION The following policy is proposed as an additional ' policy to supplement existing equal opportunity and job training and job placement policies: , In order to more closely integrate its Economic Development programs with its equal employment, equal opportunity and job training and job placement activities, the � - City will require that businesses, developers and/or firms associated with a project valued in excess of $1,000,000 and receiving the following forms of assistance: _ � a. Job training funds, b. Tax Increment assistance, , c. Urban Development Action Grant (UDAG) funds, d. Infrastructure improvements paid for from tax � levy funds or general obligation bond proceeds, or e. Land write-downs, or � f. Tax abatements, Shall agree to: , 1. Demonstrate compliance with a carefully considered � and reasonably construct�d affirmative action policy and plan, 2. Execute, with the appropriate City officials, a carefully considered and reasonably constructed first source � employment agreement, and 3 . Comply with the City' s set-aside requirements for � minority, women and small business enterprises. PROVIDED THAT it is further understood that the above requirements shall not apply to: � Projects involving the use of master lease financing, projects involved in the construction or rehabilitation of low � and moderate income housing, nor do these requirements apply to the employment of construction workers on the projects involved. Page D-16 � i � �'��3�.�� ' ' THE FINDINGS AND RECOMMENDATIONS of the THE C TIZEN COMMISSION ON BONDING AND FINANCING PRACTICE � SUMMARY REPORT January 22, 1986 MINORITY REPORT � min ��ity of the Commission proposed the foll�ving alternati e po icy: � n or er to more closely integrate its Economic Developme t pr rams with its equal employment, equal opportuni y an job training and job placement activities, th � City shal requ're that developers and/or firms receiving financial or fi ancing assistance associated with a commercia or indust ial oject valued in excess of $500,000 shall agre ' to: De onstrate compliance with a carefully consider d and reaso ably onstructed affirmative action policy �nd plan � . Ex cute, with appropriate City officials, a carefully consi ered and reasonably constructed binding first � ' source em loyme � t agreement, and Co ply with the City' s set-aside requirements fo minority, women and small business enterprises. � COMMISSION RECOMMENDATION � CRE ION OF A JOB CREATION INVESTMENT FUND he Co � ission proposes the following as an addition 1 ' policy re ating 'to job training and job placement activities nd programs: e Ci �y should establish a Job Creation Investment � Fund for e pu �pose of providing incentives for the creation f employment oppo Itunities for economically disadvantaged citizens. I est I�blishing this Fund, it is important to ' acknowled the lex erimental nature of this ro ram and the 4 P P g City' s nee to �evelop a program and process that allows for � trial and rror ith several specific initiatives in order to determine rom � ong several alternatives the most effective program po sibl '�. � D ring 'ts first two years of operation, the City should fun this program from appropriate sources at the level of approxi ately' $250,000 for each year. - ' , Page D-17 ' ! THE FINDINGS AND RECOMMENDATIONS � of the THE CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT � January 22, 1986 MINORITY REPORT � A minority of the Commission proposed the following alternative policy: The City shall establish a Job Creation Investment Fund � for the purpose of providing incentives for the creation of .employment opportunities for economically disadvantaged � citizens. In order to provide initial funding for this program, the City should consider the use of tax levy funds, general obligation bond proceeds, UDAG loan repayments, foundation grants, corporate contributions and any other appropriate source , of funds. COMMISSION RECOMMENDATION _ � EXTENSION OF THE PORT AUTHORITY' S GEOGRAPHIC BOUNDARIES OF OPERATION - The Commission proposes the following language for � consideration by City policymakers: In light of the fact that job opportunities are growing , at a faster rate in suburban communities than they are within the boundaries of the City and, in light of the fact that it is � increasingly difficult to ass�emble large parcels of land appropriate for major industrial development activities within the City limits, consideration should be given to seeking legislative change which would all�ow the Port Authority to , finance projects located in adjoining suburban communities. Projects undertaken outside of the City of St. Paul � should be structured in such a fashion that maximizes the City' s ability to provide jobs for its citizens. ADDITIONAL POLICIES , A STRONG, DIVERSIFIED LOCAL ECONOMY City policies intended to encourage the retention or � attraction of commercial and industrial development, rehabilitation or expansion are considered under three � categories: Neighborhood and Retail areas, the Downtown area and large-scale commercial and industrial development. FINDINGS � It is the opinion of the Commission that the City has Page D-18 ' ' �'u-�.�� , , THE FINDINGS AND RECOMMENDATIONS of the THE C TIZE S COMMISSION ON BONDING AND FINANCING PRACTICE , SUMMARY REPORT January 22, 1986 achieved its g al of assisting a wide variety of firms and � business s thr ughout the City. The Commission did recommen , however, sever l minor changes to the City's policies on neighbor ood a 'd downtown development. , ,OMMISSION RECOMMENDATIONS FOR CHANGE NEIGHBORHOOD DEVELOPMENT POLICY , he t xt below sets out the language proposed by the C o m m i s s i o . T e u n d e r l i n e d l a n g u a g e r e p r e s e n t s a d d i t i o n s t o existing oli language: ' N ighborhood Development. The City shall contin e to relate its mmercial development efforts with neighborhoo � revitaliz tion efforts and shall continue to emphasize joint public-pr 'vate evitalization programs which target City improveme ts, 'nancial and technical assistance to areas whi h offer the grea st potential for neighborhood revitalization. ' n mor' specific terms: � a, The City shall base its neighborhood commercia deve opment efforts on a recognition of the interdepe dence' between neighborhood commercial areas and the � adjacent eside tial communities. Develo ment shall minimize adverse e viron ental and aesthetic im acts on ad 'acent ro ertie and rovide bufferin between residential and ' industria land uses ade ate arkin and safe trans ortatio access. bl The City shall develop a clear understandin � of the re pecti e roles played by the neighborhood commercial areas, th majo retail centers and the downtown and should encourage the c mplementary development of these sectors and ' strongly iscou age proposed developments in one sector which � would be 'n dir ct competition with another sector. cl The City shall continue to target its aid f r 1 neighborh od co ercial revitalization to the most appropriat areas. � d ' The City shall continue to give priority to assisting the r tention and expansion of existing small commercia firm within the City. ' e ' The City shall continue to encourage new commercia deve opments in neighborhood commercial areas and ' Page D-19 ' � THE FINDINGS AND RECOMMENDATIONS ' of the THE CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES � SUMMARY REPORT January 22, 1986 should establish specific assistance criteria in order to decide � which development efforts to assist, f. Development shall be consistent with zoning ordinances, the comprehensive plan, the housing plan, applicable � redevelopment plans and other similar ordinances, resolutions, reQUlations and plans of the City. COMMISSION RECOMMENDATIONS FOR CHANGE � DOWNTOWN DEVELOPMENT POLICY The text below sets. out the language proposed by the , Commission. The underlined language represents additions to existing policy language: 6. Downtown Development. The City shall endeavor to ' reestablish the identity of downtown as a regional center of _ employment, shopping, investment, activity and residence. , In more specific terms: a. The City shall follow a strategy of a balanced � growth in the downtown; maintaining its strongest sectors, reinforcing the growth of its emerging sector� and establishing � investor confidence in its weakest sectors. b. The City shall continue to expand present efforts at developing a strong public support system in the � downtown enhancing the desirability of the downtown as a site for private investment and the identity of the downtown as a regional center of activity. � c. With recognition of the value of historic preservation, the City's downtown redevelopment efforts shall be directed into those geographic areas where the City has the ' maximum opportunity to induce private development and where its investment will have the greatest return. d. The City shall continue to closely coordinate ' its downtown development efforts with the downtown community and the private sector. ' INDUSTRIAL AND LARGE COMMERCIAL DEVELOPMENT POLICY 7. Industrial and Large Commercial Development. The � City shall continue to assist industrial and commercial expansions under more explicit guidelines that ensure the most Page D-20 ' ' ��r�� , THE FINDINGS AND RECOMMENDATIONS of the THE C TIZE S COMMISSION ON BONDING AND FINANCING PRACTICE � SUMMARY REPORT January 22, 1986 ' efficien use f scarce commercial and industrial land as we 1 as City inanc al resources. In mo ,e specif ic terms: , The City shall give first priority to the expansion need �of established local firms; second priority t � the assis ance 'of local entrepreneurs in establishing new fir s, and third prio 'ity to the attraction of out-of-area and out-of-st te f ' ms to the City. ' �. The City shall continue to pursue policies designed o ai � local firms experiencing difficulties in expanding ' c. The City shall establish a set of guideline with whic to e aluate all p�oposed development and expansion . projects equir �ng some form of public assistance or approval , d' The City shall increase the supply of land available for c mmercial and industrial expansion and � developme t pay ng special attention to the need for parcels f more than 10 ac es in size. ' e The City shall pursue institutional policie and chang s des gned to improve its role as a facilitator of commercia and ndustrial expansion and development. � NO CHANGE RECO NDED. ' POLICIES RELATING TO A SAFE, �ATTRACTIVE RESIDENTIAL LIVING ENVIRONMENT POLICY , 1. Holsin Su 1 . Durin the 1980 ' s the Cit shall 9 PP Y g ► Y assist in he c ,nstruction of 10,000 new housing units within ' the City a d in so doing: a. Expand both ownership and rental opportuniti s for City r side 'ts. � b.' Increase the variety of housing opportunitie within nei hbor ods. ' c. � Increase rental and ownership opportunities for lower 'ncom households. ' Page D-21 , ' THE FINDINGS AND RECOMMENDATIONS ' of the � CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT , January 22, 1986 FINDINGS - Based on its analysis, the Commission finds the City' s ' production goal of 10,000 housing units during the 1980's to be � reasonable. The average net increase for the five year period ' 1980 through 1984 is 817 units per year. This is very close to the City's goal of 850 net units per year during the 1980 's. NO CHANGE RECOMMENDED. , HOUSING AFFORDABILITY POLICY FINDINGS ' High interest rates, rapidly rising real estate values and declining real income �ombined to make housing affordability � a major issue during recent years. Measured in a variety of ways., the Commission found that housing now requires a higher percentage of income than it did in the early 1970 's, but that � housing has become relatively more affordable during the last ' two years as real estate values have stabilized and interest rates have declined. Still, housing affordability remains an important concern. � Assuming an expenditure of 30 per cent of family income for housing, housing projects and programs assisted by the City have been successful in producing new rental and homeownership , housing units affordable to approximately half of the families in the City. The remaining half of the City' s residents cannot afford new housing units and must depend upon the existing stock ' of housing for affordable hous•ing. For this reason, the City wisely places a major emphasis on the preservation, maintenance and rehabilitation of its existing housing stock. � COMMISSION'S RECOMMENDATION FOR CHANGE The Commission proposes the following as a revised ' policy on housing affordability. The underlined text below represents additional language to existing City policy: 2. Housing Affordability. The City shall expand ' housing opportunities in City neighborhoods for households of all income levels by: a. Retaining modest cost ownership opportunities ' by maintaining the existing supply as well as taking steps so that new ownership units are affordable to moderate income , households. Page D-22 ' ' ....r � �� '/1� ��` ' THE FINDINGS AND RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES ' SUMMARY REPORT January 22, 1986 ' . Retaining modest cost rental housing opportun'ties y maintaining the existing supply as well as taking s eps s� that new rental units are affordable to mode ate income h useho ds. , . Supporting continued expansion of a divers ty of housi g opp' rtunities for middle and higher income househ lds ' in those areas where displacement of lower income households is not a pr blem. ' . Limitin financial or financin assistance in ' su ort f lu r housin unless there is a direct and demonstr ble b nefit for l�a and moderate income housin . , . Measuring and reporting income in t3�e followin mann �r. In all cases where income is com uted as ercenta e of MSA median income, the Cit shall retain its se for ur ses o re ional, state and federal ro rams. In , addition the it Council shall annuall receive a re ort calculat'n th number of units assisted usin St. Paul medi n income f ' ures ' , POLICY 3. L wer Income Housing. In order to maintain an ' adequate suppl of housing affordable to lower income househol s, th City will take those steps necessary to: ' . Save and improve the existing supply of 1 cost ren al ho �sing units. I. Increase the supply of low cost rental unit . , Save and increase the supply of low income homeowner hip �nits. ' Increase the opportunities for low income people to live in neighborhoods throughout the City. ' . H sing Assistance. The City shall take those steps nec ssar � in order to ensure: , That additional housing assistance is made available to m �t the needs of lower income households. , . That housing assistance available to the Ci y is utiliz d eff ctively. ' Page D-23 , , THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT , January 22, 1986 c. That housing assistance be utilized in order ' to leverage a maximum amount of affordable housing in the City. (Housing assistance in this context refers to direct financial subsidies provided for housing purposes by the state ' and federal governments. ) FINDINGS ' The City has made a major commitment to the housing of its lower income households. The City's housing stock includes some 8,500 publicly assisted housing units for lower income ' households. Until recently, the City's stock of assisted units increased significantly each year. Since 1982, however, as a result of changes in federal housing policy, the numher of ' additional publicly assisted units available in the City has fallen drastically. The drastic decline in the number of new units ' available to the City is a source of concern to the Commission and the Commission recommends that the City make a commitment to ensure the maintenance of the supply of housing affordable to ' lower income households. COMMISSION' S RECOMMENDATIONS FOR CHANGE ' In light of the fact that the supply of additional publicly assisted housing units has been virtually eliminated, the Commission should consider the following additional policy , related to lower income housing: Maintenance of the Supply of Lower Income Housing. The , City will strongly discourage the provision of public subsidy or assistance to projects which diminish the supply of housing units affordable to lower income households unless concrete, contemporaneous action can be identified which will have the ' effect of maintaining the supply of housing units affordable to lower income households. In addition to its policy addressing the supply of ' lower income housing units, the Commission proposes the creation of a Lower Income Housing Fund: The City should establish a Lower Income Housing Fund ' for the purpose of providing dedicated, on-going financial resources for the development of new lower income housing , units. This Fund should be used for, but not limited to, development of new lower income housing units to replace those Page D-24 ' ' � - �� i�`. � ' THE FINDINGS AND RECOMMENDATIONS of the CI IZENS COMMISSION ON BONDING AND FINANCING PRACTICES , SUMMARY REPORT January 22, 1986 ' units wh ch ma be lost as a result of the City' s Economic Developm nt ac ivities. The F ' nd should be financed through one or more of he ' followin sour es: . The City and/or the State should capture ' interest incom paid on various rental or real estate relate deposits . A surcharge should be added to recording f es for real estat transactions or other related taxes, and ' Payments should be made by developers of 1 rge projects hich eliminate lower income housing units in the C'ty. ' POLICY 5. N ighborhood Quality. In order to assist in the ' maintenan e an � preservation of the existing housing stock, t e City shall ach'eve a conservation status for 80 per cent of t e City' s re iden 'ial blocks by 1990 and specifically: ' Realize substantial improvement of 1,000 residenti 1 bl icks through public action and private reinvestm nt. ' Maintain and conserve 1,680 residential blocks. , c. Achieve enough rehabilitation to reduce substanda d uni s to no more than 15 per cent of the total , housing s pply. ' FINDINGS ' he Co ission did not attempt to measure progress toward th se po icy goals. The Commission did discuss these policy go ls wi h City staff and does agree with the intent o ' these pol'cies. ' COMMISSION'S RECOMMENDATION , he sp ,cific goals contained within the City' s neighborh od qu lity policies are very specific in quantitati e terms. I a me ns of monitoring progress toward these goals s ' not been stabl shed, creation of an appropriate process shou be consid red. ' Page D-25 , ' THE FINDINGS AND RECOMMENDATIONS ' of the CITIZENS COMMISSION ON BONDING AND FINANCING PRACTICES SUMMARY REPORT , January 22, 1986 POLICY 6. Neighborhood Maintenance. The City shall seek to ' assist in the maintenance of the City's existing housing stock by. ' a. Improving the effectiveness of the City's code enforcement system. ' b. Facilitating code compliance by providing financial and technical assistance to homeowners. � c. Ensuring adequate maintenance and upgrading of ' public facilities. d. Ensuring adequate maintenance of property ' exteriors and yards. FINDINGS ' The Commission did not attempt to measure progress toward these policy goals. The Commission did discuss these ' policy goals with City staff and does agree with the intent of these policies. NO CHANGE RECOMMENDED. ' ' ' ' ' ' , Page D-26 ' '