00-1009Council File # Op � �DO�
Resolution #
Green sheet # �e��9�t
� RESOLUTION
OF SAINT PAUL, M
S�
Presented By
Referred To
Committee: Date
1 RESOLUTION APPROVING THE
2 AMENDMENT OF THE TAX INCREMENT FINANCING PLAN
3 FOR TAX INCREMENT FINANCING DISTRICT
4 NO. 1 (NORTH QUADRANT)
7 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
9 Section 1. Recitals
l0
11 1.01 On June 23, 1999, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
12(the "Authority") established the North Quadrant Redevelopment Project Area (the "Redevelopment Project
13Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan").
14
15 1 A2 On August 9, 2000 City Council approved the creation, within the Redevelopment Project Area,
16of TaY Increment Financing District No. 1(North Quadrant) (the "Tas Increment District") and the adoption
17of a Tax Increment Financing Plan therefor (the °Tax Increment Plan"), all pursuant to and in accordance with
1 sMinnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act") and Laws of Minnesota
192000, Chapter 490, Article 11, Section 40 (the "Special Law").
20
21 1.03 The Authority has determined that it is necessary to amend the T� Increment Plan to, among
2 2other things, authorize the issuance of bonded indebtedness of the Authority to finance a portion of the costs
2 3of the development as described in the amendment to the T� Increment Plan (the "Amended Plan"). The
24Autharily has performed all actions required by law to be performed prior to the amendment of the Tax Incre-
2 5ment Plan, including, but not limited to, notification of Ramsey County and Independent School District
2 6Number 625, which have t�ing jurisdiction over the property included in the Tax Increment District, and has
2 7requested that the City approve the Amended Plan following the holding of a public hearing upon published
2 sand mailed notice as required by law.
29
3 0 Section 2. Findines for the Amendment of the Tax Increment Financing Plan.
31
3 2 2.01 The City Council hereby finds that the amendment of the Tax Increment Plan for T� Increment
3 3Financing District No. 1(North Quadrant) is intended and, in the judgment of the City Council, its effect will
3 4be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the construction in the
3 5City of affordable and mixed income housing, will increase employment and otherwise promote certain
3 6public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment
3 7Financing Plan.
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1 2.02 The City Council hereby reaff rms its previous findings that Tas Increment Financing District
2No. 1(North Quadrant) qualifies as an"housing districY' within the meaning of the Ta�c Increment Act and
3the Special Law for the foilowing reasons:
5 The properry to be included in the Tax Increment Distdct is located in the Northeast
6 quadrant of the City, i.e. within the 15 acre site bounded by Interstate 94 on the north and
7 east, Jackson Street on the west and Seventh Street on the south, together with the west
8 side of Jackson Street to midblock between Interstate 94 and South Street.
9
1 o Twenty percent of the housing units the Tas Increment District wiil be occupied by
11 individuals whose family income is equal to or less than 50 percent of area median gross
12 income and an additiona160 percent of the units will be occupied by individuals whose
13 family income is equal to or less than 115 percent of azea median gross income. Twenty
14 percent of the units in the TaY Increment District will not be subject to any income
15 limitations.
16
17 Family income means the median gross income for the City as detennined under section
18 42 of the Internal Revenue Code of 1986, as amended. The income requirements will be
19 satisfied if the sum of qualified owner-occupied units and qualified residential rental units
2 0 equals the required total number of qualified units. Owner-occupied units will initially be
21 purchased and occupied by individuals whose family income safisfies the income
2 2 requirements. For residential rental property, the income requirements apply for the
2 3 duration of the Tax Increment District.
24
2 5 The fair mazket value of the improvements which are constructed in the Tax Increment
2 6 District for commercial uses or for uses other than owner-occupied and rental mixed-
2 7 income housing wili not consist of more than 20 percent of the total fair mazket value of
2 8 the planned improvements in the development plan or agreement. The fair mazket value
2 9 of the improvements will be determined using the cost of construction, capitalized
3 0 income, or other appropriate method of estimaring market value.
31
32 2.03 The City Council hereby reaffirms the following findings:
33
3 4 (a) The City Council further finds that the proposed development, in the opinion of
3 5 the City Councii, would not occur solely through private investment within the reasonably
3 6 foreseeable future and, therefore, the use of t� increment financing is deemed necessary. The
3 7 specific basis for such finding being:
38
3 9 The parcels on which the development will occur would not be developed in the
4 0 reasonably foreseeable future because they aze currently used for surface parking,
41 which use generates significant income to the current owner of the property
4 2 considering the owner's minimal investment in the property.
43
44 (b) The City Council fiu•ther finds that the Ta�c Increment Financing Plan, as amended,
4 5 conforms to the general plan for the development or redevelopment of the City as a whole. The
4 6 specific basis for such finding being:
47
4 8 The T� Increment Financing Plan will generally compliment and serve to implement
4 9 policies adopted in the City's comprehensive plan. The development contemplated is in
5 0 accordance with the existing zoning for the property.
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1 (c) The City Council fiuther finds that the Tax Increment Financing Plan, as amended, pp� (pO�
2 will afford maYimum opportunity consistent with the sound needs of the City as a whole for the
3 development of the Tas Increment District by private enterprise. The specific basis for such
4 fmding being:
6 The proposed development to occur within the Tax Increment District is housing. The
7 development wili increase needed affordabie and mixed income housing in the City and
8 will increase the mazket valuation of the City.
l0 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
11 the City Council hereby finds that the increased mazket value of the property to be developed within the
12 T� Increment District that could reasonably be expected to occur without the use of tas increment
13 financing is $-0- , which is less than the market value estimated to result from the proposed
14 development (i.e., $15,065,744) after subtracting the present value of the projected tas increments for
15 the maxiinum duration of the Tas Increment District (i.e., $3,481,295). In making these fmdings, the
16 City Council has noted that the properiy has been undeveloped for many yeazs and would likely remain
17 so if taY increment financing is not available. Thus, the use of tax increment fmancing will be a
18 positive net gain to the City, the School District, and the County, and the ta�c increment assistance does
19 not exceed the benefit which will be derived therefrom.
20
21 2.04 The provisions of this Section 2 aze hereby incorporated by reference into and made a part of
22the Amended Plan.
23
24 Section 3. Apnroval of Amendment of the T� Increment Financine Plan.
25
2 6 3.01 The amendment of the Tas Increment Plan for T� Increment Financing District No. 1(North
2 7Quadrant) is hereby approved and the Amended Plan therefor is hereby adopted.
28
2 9 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
3 Ocounsei are authorized and directed to proceed with the implementation of the T� Increment District and the
31Amended Plan and for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of
3 2the Authority for its consideration all further plans, resolutions, documents and contracts necessary for this
3 3purpose.
34
3 5
Requested by Department of:
Planninq & Economic Development
�� ���
By:
Adoption
Form Approved by Cit� A torney
Certifi by Council Secretary BY�
By: l�` . � ��9 .. � _ -
�� A � � Approved by Mayor for Submission to Council
Approved by Mayor: Date 4
gy: ,y��c�qq� By:
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Adopted by Council: Date � cX . S�, 2-u aa
L
DEPARTMENT/OFFICE/COUIYCIL: DATE INI'CIATED GREEN SHEET No.: 101694 ��' �p
PED 10/13/00
CONTACP PERSON & PHONE: AiE IIvi1'tnI1nATE
AI Carlson 6-6616 � 2 n�s�zT�r Dm _���� s cmr covxcu.
MUSC BE ON COUNCIT, AGENDA BY (DATE) �IGN
3 CITYATIORNEY CITYCLERK
October 25 � LOOO gUMBER FINANCIAL SERV DIR _ _ FAIANCIAL SERV/ACCI"G
ROI7'1'ING 4 MAYOR (OR ASST.)� i Bob Schreier
ORDER
TOTAL # OF SIGNATURE PAGES _1_(CLIP ALL LOCATIONS FOR STGNATORE)
ncrcox �2uES�rEn: Public Aearing to adopt resolution approving the amendment of the T� Increment Financing
Plan for Tax Increment Financing District No. 1(north qvadraut)
RECOMIdENDATIONS: Approve (A) or Reject (R) PERSONAL SE$VICE CONTRACCS MUST ANSWER'fFIE FOI.I.OWING
QUESTIONS:
PLANNING COMIvIISSION L Has this person/fum ever worked under a wntract for this department?
CIB COMMITTEE Yes No
CML SERVICE COMivffSSION 2. Has this person/fitm ever been a ciry empiayee?
Yes No
3. Does this person/fiim possess a skill not nomially possessed by any curtent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INII7ATING PROBLEM, ISSUE, OPPORTUYIT'Y (Who, What, When, Where, Why):
The purpose of the resolution is to amend the Tax Increment Financing District No. 1(north quadrant) to 1) allow
the issuance of a tax exempt tas increment bond to finance in part the construction of the Essex on the Pazk
Townhomes and 2) to modify the taY increment budget to reflect requirements under staxe law for monitoring
purposes by State Auditar. The proposed amendments do not change or modify the total projecY costs for the Essex
on the Park as originally proposed to the council.
ADVANI'AGES IF APPROVF.D:
DTSADVAN'['AGES IF APPROVED:
DLSADV.4NTAGES IF NOT APPROVED;
TOTAL AMOilN1' OF'1RANSACTION: $ COST/REVENUE BUDGETED:
FUNDING SOURCE: ACl'iVITY NOMBER:
FINANCIAL IlVFORMATION: (EXPLAIN)
\�Ped�y5l�SAared�KAPLANUgmsM1Cfrm
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Interdepartmental Memorandum
CI'IS' OF SAINT PAUL
TO: Council President Bostrom
Councilmember Benanav
Councilmember Blakey
Councilmember Coleman
Councilmember Harris
Councilmember Lantry
Councilmember Reiter
FROM: Brian Sweeney
Allen Carlson �(j
DATE: October 13, 2000
RE: PUBLIC HEARING: RESOLUTION APPROVING THE AMENDMENT
OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO.1(NORTH QUADRANT)
Purpose
The purpose of this public hearing is to receive public comment and request the City Council to
approve a resolution amending the Tas Increment Financing Plan (the "Plan") for the Tas
Increment Financing District No. 1(North Quadrant) (the "District") which was originally
adopted by the Housing and Redevelopment Authority of the City of Saint Paul on August 9,
2000.
Background
The District is bounded by '7t 8"' , Wacouta and Sibley Streets. The District was adopted to
allow tas increments to be generated to assist in the financing of a proposed 114 multifamily
rental building with 10,000 square feet of commercial space (the "Sibley Pazk Apartments") and
a 3 8 unit for sale town home development (the "Essex on the Pazk"). Twenty-two percent of the
rental units will be affordable to households at ar below 30% of the azea median income and
18% of the rental units will be affordable to households at or below 50% of the area median
income.
Pursuant to State statutes any time a change in the plan is proposed a public hearing must be
conducted. Staff is proposing the following amendments to the Plan:
pp_�ooq
Amend Subsection 9 of the Plan which includes the proposed budget for the Plan. The
budget is being amended to add for State Auditing purposes all City/FIRA funds that will
be used to assist in the development of the proposed housing. The original budget only
included tax increment funds. This proposed change does not change the fivaucing or
originally approved budgeted amounts for the project. The added funds to the budget for
State Auditing purposes include I3RA Enterprise funds, federal HOME funds and
Metropolitan Council that were awazded to the City for the project.
Amend Subsection 10 to a11ow up to $1.5 million of bonded indebtedness to finance
public costs related to the construction of the Essex on the Pazk development. The
original Plan only allowed expendihues authorized by the Plan to be paid on a pay-as-
you-go basis. Because of the long duration of the District (25 yeazs) it became
unpossible to fmd any banks willing to purchase the pay-as-you-go note for the
ownership or Essex on the Park project. Therefore, the only viable and cost effective
fmancing tool to fund the Essex on the Pazk using tax increments is issuance of a IIRA
tas increment tax exempt revenue bond. Currently, it is estimated that the bond issue
would be about $13 million dollazs. The HRA authorizes issuance of the revenue bond.
Recommendation
Staff recommends approval of the attached resolution amending the Tax Increment Financing
Plan for the Tax Increment Financing District No. 1(North Quadrant).
Statement of the Council President
Being duly authorized by the City Council to conduct this Public Hearing, the heazing is now
open. This Public Hearing is called for the proposed purpose to consider the following:
Amendment of the Tax Increment Financing Plan for the Tax Increment Financing
District No.l (North Quadrant).
Notice of time, place, and purpose of this hearing was published in the Saint Paul Legal Leger on
October 6, 2000. The affidavit of the publication of the Notice of Public Hearing will be made a
part ofthese proceedings.
Is there anyone who wishes to be heard on this item? If not, the Chair will declare this Public
Hearing adjourned.
Attachments
Resolution approving amendment to the T� Increment Financing Plan for the Tax
Increment Financing Dishict No. 1(North Quadrant)
Amended Tax Increment Financing Plan for the Tax Increment Financing District No. 1
(North Quadrant)
K:\S1�ared�CARLSOAP�sherman\CC'17F AMIND 12P'I 102500.wpd
�
i Y �,
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRANT)
(a housing district)
wiChin the
NORTH QUADRANT REDEVELOPMENT PROJECT AREA
HOUSII3G AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: August 9, 2000
Amended: October 25, 2000
This document was drafted by: BRIGGS AND MORGAN, (MIVID)
Professional Association
2200 First National Bank Bldg.
St. Paul, MN 55101
(651) 223-6625
,
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTFi QUADRANT)
Paae
Subsection 1.
Subsection 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6
Subsection 7
Subsection 8
Subsection
Subsection
Subsection
Subsection
9.
10.
11.
12.
Subsection 13
Subsection 14
Subsection 15
Subsection 16
Subsection 17
Subsection 18
Subsection
Subsection
Subsection
Subsection
Subsection
Subsection
19.
20.
21.
22.
23.
24.
Subsection 25
Subsection 26
Subsection 27
Subsection 28
Subsection 29
Forward . . . . . . . . . . . . . . . . .
Statutory Authority . . . . . . . . . . .
Statement of Objectives . . . . . . . . .
Redevelopment Plan Overview . . . . . . .
Parcels to be Included in Tax Increment
Financing District No. 1 . . . . . . . .
Parcel in Acquisition . . . . . . . . . .
Development Activity in Tax Increment
Financing District No. 1 for which
Contracts have been Signed . . . . . . .
Other Specific Development Expected to
Occur within Redevelopment Area . . . . .
Estimated Cost of Project . . . . . . . .
Estimated Amount of Bonded Indebtedness .
Sources of Revenue . . . . . . . . . . .
Estimated Captured Tax Capacity and
Estimate of Tax Increment . . . . . . . .
Type of Tax Increment Financing District
Duration of Tax Increment Financing
District . . . . . . . . . . . . . . . .
Estimated Impact on Other Taxing
Jurisdictions . . . . . . . . . . . . . .
State Tax Increment Financing Aid ....
Modification of Tax Increment Financing
District and/or Tax Increment Financing
Plan . . . . . . . . . . . . . . .
Modifications to Tax Increment Financing
District . . . . . . . . . . . . . .
Administrative Expenses . . . . . . . . .
Limitation of Increment . . . . . . . . .
Use of Tax Increment . . . . . . . . . .
Notification of Prior Planned
Improvements . . . . . . . . . . . . . .
Excess Tax Increments . . . . . . . . . .
Requirements for Agreements with the
Developer . . . . . . . . . . . . . .
Other Limitations on the Use of Tax
Increment . . . . . . . . . . . . . . . .
County Road Costs . . . . . . . . . . . .
Assessment Agreements . . . . . . . . . .
•Administration of the Tax Increment
Financing District . . . . . . . . . .
Financial Reporting Requirements . . . .
. 1
. 1
. 1
. 2
. 2
. 3
. 3
. 3
. 3
. 4
. 4
. 5
. 5
. 6
. 7
. 8
. 9
. 9
10
10
12
12
13
13
14
15
15
16
16
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EXHSBIT A- Map of Tax Increment District No. 1
EXHIBIT B- Map of North Quadrant Redevelopment Project Area
EXHIBIT C- Projected Tax Increments
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TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FII3ANCING DISTRICT I30. 1(I30RTH QUADRANT}
Subsection 1. Forward. The Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "HRA"), and
its staff and consultants have prepared the following information
for the establishment of Tax InCrement Financing District No. 1
(North Quadrant), a housing district (the "Tax Increment
DistriCt"). The Tax Increment District is located within the
North Quadrant Redevelopment Project Area (the "Redevelopment
Project Area") established by the HRA pursuant to the North
Quadrant Redevelopment Plan adopted by the HRA on June 23, 1999
(the "Redevelopment Plan"). The Redevelopment Plan was approved
by the Planning Commission on June 23, 1999.
Subsection 2. Statutory Authoritv. There exist areas
within the City of Saint Paul (the "City") where public
involvement is necessary to cause development to occur. To this
end, the HRA has certain statutory powers pursuant to special
legislation (Laws of Minnesota, Chapter 490, Article li, Section
40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Tax Increment Financing Act" or "TTF Act"),
to assist in financing public costs related to a project.
Subsection 3. Statement of Obictives. The Tax Increment
Financing District consists of 2 parcels of land and adjacent and
internal rights-of-way. A map showing the boundaries of the Tax
Increment District is attached as Exhibit A. The Tax Increment
Financing Di5trict is being created to facilitate a 38 unit owner
occupied townhome development (the "Owner Occupied Development")
and a 114 unit rental apartment facility (the "Rental
Development"). The tax increment financing plan is expected to
achieve many of the objectives outlined in the Redevelopment Plan
for the North Quadrant Redevelopment Project Area. The following
are some of the objectives being facilitated by this Tax
Increment Financing Plan.
A. Provide Affordable Housing for Saint Pau1 Residents.
The available housing in the downtown area of the city will
expand by more than 152 units with the completion of the housing
development Contemplated by this Tax Increment Financing Plan.
B. To Redevelop Underused Pro�ertv.
The Tax Increment District is a site that has been
underutilized for many years. The majority of the area comprising
the site has been used for surface parking. New commercial,
cultural and recreational investments are jeopardized by lack of
development in the downtown area. 25 of the units in the rental
portion of the development will be affordable to households at or
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below 300 of Che area median income and 23 units will be
affordable to households at or below 50% of the area median
income. 23 of the owner-occupied units will be affordable to
households between 80o and 115% of area median income.
In order to protect past investments and encourage new
development in the downtown area new housing development needs to
be created to encourage additional private investment.
C. Expand the Tax Base of the Citv of Saint Paul.
It is expected that the taxable market value of parcels in
the Tax Increment District will increase by approximately
$21,280,000.
The activities contemplated in the Redevelopment Plan and
this Tax Increment Financing Plan do not preclude the undertaking
oE other qualified development or redevelopment activities.
These activities are anticipated to occur over the life of the
Tax Increment District and the Redevelopment Project.
Subsection 4. RedeveloAment Plan Overview.
1. Property to be Acquired - Selected property located
within Tax Increment Financing District or
Redevelopment Project Area may be acquired by the HRA.
2, Relocation - if necessary, complete relocation services
are available pursuant to Minnesota Statutes, Chapter
117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to a
development and completion of the necessary legal
requirements, the HRA may sell or assist a developer
with the cost of selected properties within Tax
Increment Financing District or Redevelopment Project
Area, or may lease land or facilities to a developer.
4. The xRA may perform or provide for some or all
necessary acquisition, construction, relocation,
demolition, and required utilities and street work
within Tax Increment Financing District No. 1.
Subsection 5. Parcels to be Included in Tax Increment
Financina Di5trict No. 1. The following parcels located in the
City of Saint Paul, Ramsey County, Minnesota:
PIN NO.
312922440028
312922440029
ADpRESS
221 7`" Street East
440 Sibley Street
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FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1 CAN BE
OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA.
Subsection 6. Parcel in Acquisition. The HRA may finance
a11 or a part of the costs of acquisition of the parcels
identified in Section 5 of this Tax Increment Financing Plan.
The following are conditions under which properties not
designated to be acquired may be acquired at a future date:
(1) The HRA may acquire property by gift, dedication,
condemnation or direct purchase from willing sellers in
order to achieve the objectives of the tax increment
financing plan; and
(2) Such acquisitions will be undertaken only when there is
assurance of funding to finance the acquisition and
related costs.
Subsection 7.
The following contracts have been or wi11 be entered into by the
HRA and the persons named below:
No development agreements have been entereci into at
this time. However, the HRA anticipates entering into
a development agreement with an entity to be formed by
Sherman Associates, Inc. and The Lander Group (the
"Developer") with respect to the development of a 38
unit owner occupied townhome development and a 114 unit
rental apartment facility.
Subsection 8. Other Specific Development Expectied to Occur
within Redevelopment Area.
Although no specific additional developmenCs have been
identified at this time, the HRA expects that the
acquisition and construction of the above housing
development will encourage additional development in
the Redevelopment Project Area.
Subsection 9. Estimated Cost of Proiect. The HRA has
determined that it will be necessary to provide assistance for
certain public costs of certain housing activities. To
facilitate the development of the Tax Increment Financing
District, this Tax Increment Financing Plan authorizes the use of
tax increment financing to pay for the cost of certain eligible
expenses. The estimate of public costs and uses of funds
associated with Tax�Increment Financing District is outlined in
the following table:
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Da-a°g
(Owner Occupied Development)
Tax Metropolitan
Increments Council Grant
Uses
Underground Parking
Site Development and
Construction Costs
Interest
Capitalized Interest
Administrative
$ 950,000
300,000
1,974,000
90,000
345.000
TOTAL $3,659,000
(Rental Development)
Uses
Site
Development and
Construction
Costs
Parking
Interest
Administrative
TOTALS
HRA Federal
Tax Enterprise Home
Increments Fund Loan Loan
$ 840,000
1,600,000
3,300,000
340.400
$6,080,000
$250,000 $750,000
$450,000
$450,000
$250,000 $750,000
Metro�oliCan
Council Loan
$500,000
: �� ���
Estimated costs associated with Tax Increment Financing District
are subject to change and may be reallocated between line items
by the HRA. The cost of all activities to be financed by the tax
increment will not exceed, without formal modification, the
budget for the tax increments set forth above.
Subsection 10. Estimated Amount of Bonded Indebtedness. The
HRA may issue its tax increment revenue bonds in an amount not to
exceed $1,500,000 to finance public costs of the Owner Occupied
Development. The expenditures authorized by this Tax Increment
Financing Plan for the Rental Development will be paid for on a
pay-as-you-go basis.
Subsection 11. Sources of Revenue. The costs outlined in
Section 9 above will be financed through the annual collection of
tax inczements, and the loans or grants given by or through the
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City or HRA as set forth above. The total cost of the Rental
Development are estimated to be approximately $17,000,000. The
total cost of the 38 unit Owner Occupied Development is estimated
to be approximately $9,500,000.
Additional sources o£ funds for the Rental Development wi11
be assistance directly from the Minnesota Housing Financing
Agency in the amount o£ $700,000 and from the Family Housing Fund
in the amount of $150,000. The Developer will receive a$450,000
grant directly from the Minnesata Housing Financing Agency for
the Owner Occupied Development. The Developer will contribute
equity or obtain private financing for the remaining costs of the
Developments.
Subsection 12
of Tax Increment.
Financing District
1999.
Estimated Caotured Tax Capacity and Estimate
The most recent tax capacity of Tax Increment
is estimated to be $10,577 as of January 2,
The estimated captured tax capacity of Tax Increment
Financing District at completion is estimated to be $254,812.
The HRA elects to retain all of the captured tax capacity to
finance the costs of Tax Increment Financing District No. l. The
HRA elects the method of tax increment computation set forth in
Minnesota Statutes, Section 469.177, subd. 3(a).
SubseCtion 13. �m� of Tax Increment Financina District.
Tax Increment Financing District No. 1 is a housing district
established, pursuant to Minnesota Statutes, Section 469.174,
Subd. 10, and the Special Law, and will satisfy the requirements
described below.
The Tax Increment Einancing District consists of a project,
or a portion of a project, intended for occupancy, in part, by
persons of low and moderate income as defined in Minnesota
Statutes, Chapter 462A, Title II, of the National Aousing Act of
1934; the National Housing Act of 1959; the United States Housing
Act of 1937, as amended; Title V of the Housing Act of 1949, as
amended; any other similar present or future federal, state, or
municipal legislation, or the regulations promulgated under any
of those acts. Twenty percent of the units in the development in
the Tax Increment District must be occupied by individuals whose
family income is equal to or less than 50 percent of area median
gross income and an additional 60 percent of the units in the
development in the Tax Increment District must be occupied by
individuals whose family income is equal to or less than 115
percent of area median gross income. Twenty percent of the units
in the development in the Tax Increment District are not subject
to any income limitations. Family income means the median gross
income for the area as determined under section 42 of the
Internal Revenue Code of 1986, as amended. The income
1183029.4 5
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requirements are deemed to be satisfied if the sum of qualified
owner-occupied units and qualified residential rental units
equals the required total number of qualified units. Owner-
occupied units must be initially purchased and occupied by
individuals whose family income satisfies the income requirements
of this subdivision. For residential rental property, the income
requirements of this subdivision apply for the duration of the
Tax Increment District.
The development in the Tax IncremenC Distric� does not
qualify if the fair market value of the improvements which are
constructed for cominercial uses or for uses other than owner-
occupied and rental mixed-income housing consists of more than 20
percent of the total fair market value of the planned
improvements in the development plan or agreement. The fair
market value of the improvements may be determined using the cost
of construction, capitalized income, or other appropriate method
of estimating market value.
In establishing Tax Increment Financing District, the
determination has been made that the anticipated development
would not be reasonably expected to occur solely through private
investment within the reasonably foreseeable future and that
therefore the use of tax increment financing is deemed necessary.
In making this determination the HRA has relied on its own
knowledge of the development history of the area and on
representations made by the Developer.
The HRA and the City have determined that the proposed
development of the Tax Increment District would not reasonably be
expected to occur solely through private investment within the
reasonably Eoreseeable future and that the increased market value
pf the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the
increase in the market value estimated to result from the
proposed development after subtracting the present value of the
projected tax increments for the maximum duration of Che district
permitted by the plan.
Subsection 14. Duration of `rax incremenc r�z�a�.����u Ll.71�11�.t-•
The duration of Tax Increment Financing District will be 25 years
from the receipt of the first tax increment. The date of receipt
of the first tax increment is expected to be July of 2002.
Attached as Exhibit C is the projected receipt of tax increments
from Tax Increment Financing District.
Subsection 15. Estimated Impact on Other '1'axincr �urisuic-
tions. The estimated impact of Tax Increment Financing District
on the other taxing jurisdictions assumes construction would have
' occurred without the creation of Tax Increment Financing
District. If the construction is a result of tax increment
financing, the impact is $0 to other entities. Notwithstanding
1183029.4 6
0�-1P0°l
.
the fact that the fiscal impact of the other taxing jurisdictions
is $0, due to the fact that the construction would not have
occurred without the assistance of the HRA, the following
estimated impact of Tax Increment Financing District would be as
follows if the "but for" test was not met:
1183029.4
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Subsection 16. State Tax Increment Einancina Aid. Pursuant
to Minnesota Statutes, Section 273.1599, for tax increment
financing districts for which certification was requested a£ter
April 30, 1990, a municipality incurs a reduction in state tax
increment £inancing aid (RISTIFA) applied to the municipality's
Local Government Aids (LGA) first and, I3omestead and Agricultural
Aid (HACA) second, in an amount equal to a fornlula based upon the
equalized qualifying captured tax capacity (QCTC) of Tax
Increment Financing District.
Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6,
the HRA may choose an option to the LGA-HACA penalty, Tax
Increment Financing District is exempt from the LGA-HACA
reduction if the HRA elects to make a qualifying local
contribution at the time of approving the Plan. To qualify for
the exemption in each year, the HRA must make a qualifying local
contribution to the project of a certain percentage. The local
contribution for a housing district is 5 percenC. The maximum
local contribution for all districts in the City in any year is
limited to two percent of the City's net tax capacity, after
which point the HRA must make an additional contribution equal to
the lesser of (a) 0.25 percent of the City's net tax capacity or
(b) 3 percent of tax increment revenues for that year.
The amount of the local contribution must be made out of
unrestricted money of the HRA or the City, such as the general
fund, a property tax levy, or a federal or state grand-in-aid
which may be spent for general government purposes. The local
contribution may not be made, directly or indirectly, with tax
increments or developer payments. The local contribution must be
used to pay project costs and cannot be used for general
government purposes.
The HRA elects to make the annual local coatribution to the
project to exempt itself from the LGA-HACA penalty. The HRA will
pay for costs of the project described in this Plan, in an amount
equal to 5 percent of annual tax increment for Tax Increment
Financing District, subject to the limitations described above,
in any year in which such amount exceeds 2 percent of the City's
net tax capacity. Such contribution may be in form of either
lump sum or annual payments (in addition to tax increment
payments) towards costs identified in this Plan or other costs
related to that development. The contribution may also be made
in the form of public improvement financed by the City or other
unit of government with unrestricted funds.
,
iiaaozs.n 8
• � � a •
Subsection 17. Modification of Tax Increment Financina
District and/or Tax Sncrement Financina Plan. As of August 9,
2000, no modifications to Tax Increment Financing District No.
or the Tax InCrement Financing Plan therefore have been made.
Subsection 18. Modifications to Tax Increment Financina
District
In accordance with Minnesota Statutes, Section 469. 175,
Subd. 4, any:
1. reduction or enlargement of the geographic area of the
Tax Increment Financing District;
2. increase in amount of bonded indebtedness to be
incurred, including a determination to capiCalize
interest on debt if that detennination was not a part
of the original plan, or to increase or decrease the
amount of interest on the debt to be capitalized;
3, increase in the portion of the captured net tax
capacity to be retained by the HRA;
4. increase in total estimated tax increment expenditures;
or
5. designation of additional property to be acquired by
the HRA,
shall be approved upon the notice and after the discussion,
public hearing and findings required for approval of Che original
plan.
The geographic area of District may be reduced, but shall not be
enlarged after five years following the date of certification of
the original net tax capacity by the county auditor. The
requirements of this paragraph do not apply if (1) the only
modification is elimination of parcel(s) from Tax Increment
Financing District and (2)(A) the current net tax capacity of the
paTCel(s) eliminated from the Tax Increment Financing District
equals or exceeds the net tax capacity of those parcel(s) in the
Tax Increment Financing District's original neC tax capacity or
(B) the HRA agrees that, notwithstanding Minnesota Statutes,
Section 469. 177, Subd. 1, the original net tax capacity will. be
reduced by no more than the current net tax capacity of the
parcel(s) eliminated from the Tax Increment Financing District.
The ARA must notify the County Auditor of any modification that
reduces oz enlarges the geographic area of the Tax Increment
Financing District or the Redevelopment Project Area.
Modifications to Tax Increment Financing District in the form of
a budget modification or an expansion of the boundaries will be
recorded in the Tax Increment Financing Plan.
1183029.4 9
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Subsection 19. Administrative Ex�enses.
In accordance with Minnesota Statutes, Section 469.174,
Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3,
administrative expenses means all expenditures of the HRA, other
than:
1. amounts paid for the purchase of land or amounts paid
to contractors or others providing materials and
services, including architectural and engineering
services, directly connected with the physical
development of the real property in the district;
2, relocation benefits paid to or services provided for
persons residing or businesses located in the district;
or
3. amounts used to pay interest on, fund a reserve £or, ox
sell at a discount bonds issued pursuant to Minnesota
Statutes, Section 469.178.
Administrative expenses also include amounts paid for
services provided by bond counsel, fiscal consultants, and
planninq or economic development consultants. Tax increment may
be used to pay any authorized and documented administrative
expenses for the Tax Increment Financing District up to but not
to exceed 10 pezcent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h,
tax increments may be used to pay for the county's actual
administrative expenses incurred in connection with the Tax
Increment Financing District. The county may require payment of
those expenses by February 15 of the year following the year the
expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11,
the county treasurer shall deduct an amount equal to 0.1 percent
of any increment distributed to the HRA and the county treasurer
shall pay the amount deducted to the state treasurer for deposit
in the state general fund to be appropriated to the State Auditor
for the cost of financial reporting of tax increment financing
information and the cost of examining and auditing authorities'
use of tax increment financing.
Subsection 20. Limitation of Increment.
Pursuant to Minnesota Statutes, Section 469. 176, Subd.
1(a), no tax increment shall be paid to the HRA for the Tax
IncremenC FinanCing District after three (3) years from the date
' of certification of the Original Net Tax Capacity value o£ the
taxable property in the Tax Increment Financing District by the
County Auditor unless within the three (3) year period:
1183029.4 �-�
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(a) bonds have been issued pursuant to Minnesota Statutes,
Section 469. 178, or in aid of a project pursuant to
any other law, except revenue bonds issued pursuant to
Minnesota Statutes, Sections 469.152 to 469.165, or
(b) the HRA has acquired property within the Tax Increment
Financing Di5trict, or
(c) the HRA has constructed or caused to be constructed
public improvements within the Tax Increment Financing
District.
The tax increment pledged to the paymenC of bonds and
interest triereon may be discharged and may be terntinated if
sufficient funds have been irrevocably deposited in the debt
service fund or other escrow account held in trust for all
outstanding bonds to provide for the payment of the bonds at
maturity or redemption date.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6:
if after four years from the date of certification of
the original net tax capacity of the tax increment
financing district pursuant to Minnesota Statutes,
Section 469.177, no demolition, rehabilitation or
renovation of property or other site preparation,
including qualified improvement of a street adjacent to
a parcel but not instailation of utility service
including sewer or water systems, has been commenced on
a parcel located within a tax increment financing
district by the authority or by the owner of the parcel
in accordance with the tax increment financing plan, no
additional tax increment may be taken from that parcel
and the original net tax capacity of that parcel shall
be excluded from the original net tax capacity of the
tax increment financing district. If the authority or
the owner of the parcel subsequently commences
demolition, rehabilitation or renovation or other site
preparation on that parcel including qualified
improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the
activity has commenced and the county auditor shall
certify the net tax capacity thereof as most recently
certified by the commissioner of revenue and add it to
the original net tax capacity of the tax increment
financing district. The county auditor must enforce
the provisions of this subdivision. For purposes of
this subdivision, qualified improvements oE a street
are limited to '(1) construction or opening of a new
street, (2) relocation of a street, and (3) substantial
reconstruction or rebuilding of an existing street.
1183029.4 1�-
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Subsection 21. Use of Tax Increment.
The HRA hereby determines that it will use 100 percent of
the captured net tax capacity of taxable property located in the
Tax Tncrement Financing District for the following purposes:
1. to pay the principal of and interest on bonds used to
finance a project;
2. to finance, or otherwise pay the capital and
administration costs of the 22edevelopment Project Area
pursuant to the Minnesota Statutes, Sections 469.124 to
469.134;
3. to pay for project costs as identified in the budget;
4. to finance, or otherwise pay for other purposes as
provided in Minnesota Statutes, Section 469.1 76, Subd.
4;
5. to pay principal and interest on any loans, advances or
other payments made to the HRA or for the benefit of
Redevelopment Project Area by the developer;
6. to finance or otherwise pay premiums and other costs
for insurance, credit enhancement, or other security
guaranteeing the payment when due of principal and
interest on tax increment bonds or bonds issued
pursuant to the Plan or pursuant to Minnesota Statutes,
Chapter 462C and Minnesota Statutes, Sections 469.152
to 469.165, or both; and
7. to accumulate or maintain a reserve securing the
payment when due of the principal and interest on the
tax increment bonds or bonds issued pursuant to
Minnesota Statutes, Chapter 462C and Minnesota
Statutes, Sections 469.152 to 469.165, or both.
These revenues shall not be used to circumvent any levy
limitations applicable to the HRA nor for other purposes
prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Subsection 22. Notification of Prior Planned Improvements.
The HRA shall, after due and diligent search, accompany its
request £or certification to the County Auditor or its notice of
the Tax Increment Financing District enlargement with a listing
of all properties within the Tax Increment Financing District or
area of enlargement for which building permits have been issued
during the eighteen (18) months immediately preceding approval of
the Plan by the municipality pursuant to Minnesota Statutes,
Section 469.175, Subd. 3. The County Auditor shall increase the
original value of the Tax Increment Financing District by the
value of improvements for which a building permiC was issued.
� Pursuant to Mirinesota SCatutes, Section 469.177, Subd. 4,
the HRA has reviewed the area to be iaaluded in the Tax Increment
1183029.4 12
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Financing District and found no parcels for which building
pexmits have been issued during the 18 months immediately
preceding approval of the Plan by the HRA.
Subsection 23. Excess Tax Increments.
Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in
any year in which the tax increment exceeds the amount necessary
to pay the costs authorized by the Plan, including the amount
necessary to cancel any tax levy as provided in Minnesota
Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess
amount to do any of the following:
1. prepay any outstanding bonds;
2, discharge the pledge of tax increment therefor;
3. pay into an escrow account dedicated to the payment of
such bond; or
4, return the excess to the County Auditor for
redistribution to the respective taxing jurisdictions
in proportion to their local tax rates.
In addition, the HRA may, subject to the limitations set
forth herein, choose to modify the Plan in order to finance
additional public costs in the Tax Increment Financing District
or Redevelopment Project Area.
Subsection 24. Reauirements for Agreements with the
Develoger.
The HRA will review any proposal for private development to
deternline its conformance with the Redevelopment Plan and with
applicable municipal ordinances and codes. To facilitate this
effort, the following documents may be requested for review and
approval: site plan, construction, mechanical, and electrical
system drawings, landscaping plan, grading and storm drainage
plan, signage system plan, and any other drawings or narrative
deemed necessary by tihe City to demonstrate the conformance of
the development with city plans and ordinances. The HRA may also
use the Agreements to address other issues related to the
development.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no
more than 10 percent, by acreage, of the property to be acquired
in the Tax Increment Financing District as set forth in the Plan
shall at any time be owned by the ARA as a result oE acquisition
with the proceeds of bonds issued pursuant to Minnesota Statutes,
Section 469. 178, without the HRA having, prior to acquisition in
excess of 10 percent of the acreage, concluded an agreement for
the•development or redevelopment of the properCy acquired and
which provides recourse for the HRA should the development or
redevelopment not be completed.
1183029.4 13
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Subsection 25. Other Limitations on the Use of Tax
Inczement.
1. General Limitations. All revenue derived from tax
increment sha11 be used in accordance with the Plan.
The revenues shall be used to finance, or otherwise pay
the capital and administration costs of the
Redevelopment Project Area pursuant to the Minnesota
Statutes, Sections 469.12a to 469.134;
These revenues shall not be used to circumvent existinq
levy limit law. No revenues derived Erom tax increment
shall be used for the acquisition, construction,
renovation, operation or maintenance of a building to
be used primarily and regularly for conducting the
business of a municipality, county, school district, or
any other local unit of government or the state or
federal government, or for a commons area used as a
public park, or a facility used for social, recreation
or conference purposes. This provision shall not
prohibit the use of revenues derived from tax
increments for the construction or renovation of a
parking structure.
2. Poolinq Limitations. At least 80 percent of tax
increments from the Tax Increment Financing District
must be expended on activities in the Tax Increment
Financing District or to pay bonds, to the extent that
the proceeds of the bonds were used to finanCe
activities within said district or to pay, or secure
payment of, debt service on credit enhanced bonds. Not
more than 20 percent of said tax increments may be
expended, through a development fund or othercvise, on
activities outside of the Tax Increment Financing
District except to pay, or secure payment of, debt
service on credit enhanced bonds. For purposes of
applying this restriction, all administrative expenses
must he treated as if they were solely for activitiss
outside of the Tax Increment Financing District.
3. Five Year Limitation on Commitment of Tax Increments.
Tax increments derived from the Tax Increment Financing
District shall be deemed to have satisfied the 80
percent test set forth in paragraph (2) above only if
the five year rule set forth in Minnesota Statutes,
Section 469. 1763, Subd. 3, has been satisfied; and
beginning with the sixth year following certification
of the Tax InCrement Financing District, 80 percent of
said tax increments that remain after expenditures
� permitted under said five year rule must be used only
to pay previously commitment expenditures or credit
1183029.4 �-4
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enhanced bonds as more fully set forth in Minnesota
Statutes, Section 469.1763, Subd. 5.
a, ExDenditures Outside District. The Authority hereby
elects to spend an additional ten percent o£ the tax
increments on activities located outside the Tax
Increment District as permitted by Minnesota Statutes,
Section 469.1763, subd. 2(d) provided that the
expenditures meet the following requirements:
(1) they are used exclusively to assist housing
that meets the requirements for a qualified low-income
building as defined in Section 42 of the Internal
Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of
housing as defined under Section 42(c) of the Code less
the amount of any credit allowed under Section 42 of
the Code, and
(3) They are used to (i) aaquire and prepare the
site for housing, (ii) acquire, construct or
rehabil.itaCe the housing or (iii? make public
improvemenCs directly related to the housing.
Subsection 26. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la,
the county board may require the HRA to pay for all or part of
the cost of county road improvements if, the proposed development
to be assisted by tax increment will, in the judgement of the
county, substantially increase Che use of county roads requiring
construction of road improvemenCs or other road costs and if the
road improvements are not scheduled within the next five years
under a capital improvement plan or other county plan.
In the opinion of the HRA and consultants, the proposed
development outlined in this Plan will have little or no impact
upon county roads. If the county elects to use increments to
improve county roads, it must notify the HRA within thirty days
of receipt of this Plan.
Subsection 27. Assessment Agreements.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8,
the HRA may enter into an agreement in recordable form with the
developer of property within the Tax Increment Financing District
which establishes a minimum market value of the land and
completed improvements for the duration of the Tax Increment
Financing District.� The assessment agreement shall be presented
to the assessor who shall review the plans and specifications for
the improvements constructed, review the market value previously
1183029.4 15
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assigned to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in
the assessment agreement appear, in the judgment of the assessor,
to be a reasonable estimate, the assessor may certi£y the minimum
market value agreement.
Subsection 28.
Pdministration of the Tax Increment Financing District will
be handled by the Executive Director o£ the HRA.
Subsection 29. Financial Reportincr Requirements.
The BRA will comply with all reporting requirements of
Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a.
1183029.4
16
EXHIBIT A
Oo�-toOq ,
w
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a
EXHIBIT B
� ��'�.`������ �
�.�,.x�.�...r. No��t�i Qlfc�c��•ayit
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EXHIBIT C
Assum tions Re ort
City of St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibley Park) Housing Devetopment
Scenario A- Phase One To� Project (26 years, 8% note)
Type of Tax Increment Financing District
Maximum Duration of TIF District
Certification Request Date
Decertification Date
Base Estimated Market Vaiue
Times: First SO
Excess
Originai Net Tax Capacity ( i)
Assessment/Collection Year
Base Estimated Market Value
Increase in Estimated Market Value (7)
200112002 2002/2003 2003/2004 2004/2D05
Total Estimated Market Value
Times: Fiist SO
Excess
Total Net Tax Capacity (7)
25 years from 1st increment
09/01 /00
7Z07/27 �26 Years of Increment)
2000/2001
$683,500
0.00%
0.00 %
Cp—W�9
$683,500 $683,500 5683,500 $683,500
2,000,000 75,065,744 15,065,744 15,065,744
52.683,500 575,749,244 $15,749.244 $15.749,2A4
0.00°/0 0 0 0 0
0.00% 0 0 0 0
Base inflation Factor
Local Tax Capac;ty Rate
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax flate (Onfy if Local-Effort TIF)
Bonds
Bonds Da[ed
First �nterest Date
Underwriters Discount
NA
NA
NA
0
0
$70,577
�41,527 $265,389
$265,389 $265,389
NA
148.5531 (Payabie 2000)
0.0000 % (NA for Housing)
5%,-10% (See Note #3)
0.00%
NA
Note (Pav-As-YOU-Gol
Note Dated 09/01l00
Note Rate 8.00%
LGAMACA Loss:
Wat Annual local Contribution Be Made (Yes or Noj? (2) Yes
I.S.O k625 Equalized Tax Capacity Rate NA
1.S.D �t625 Sales Ra[io � NA
City Sales Ratio & Tazable Net Tax Capacity NA NA
Present Value Date & flate 09/Ot/00 5.00%6
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(2) Assumes annual contributlon w�Il be made upfront and will not be available tor debk service.
(3) Assumes admin. retainage of 5°6 on apartments and 10°0 on townhomes and retail space.
Prepared by: Springsted Incorporated (printed on 09/78/2000 at 9:58 AM) C-1
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Assum tions Re ort
City oi St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibtey Park) Housing Development
Scenario B- Phase One Rental-Retail Onty (26 years, 8% note)
Type o( Tax Increment Financing District
Maximum Duration of TIF District
CeRification Request Date
Decedification Date
Base Estimatzd Market Value
Times: First $0
Excess
Original Net Tax Capacity (t )
0.00%
0.00%
25 years trom ist incremeM
09/Oi/00
12l0ff27 (26YearsofVncrement)
2000/2001
S432,073
0
0
58,063
AssessmenVCOtiection Year
2001/2002 2002/2003 2003/2004 2004l2005
Base Eslimated Market Value
Increase in Estimated Market Value (i)
Total Estimated Markei Value
Times: First SO
Excess
7ota1 Net Tax Capacity (t)
5432,073 $432,073 $432,073 S432,073
7,264,295 8,412,372 8,472,372 8,412,372
$1,696,368 58,844,444
0.00 / 0 0
0.00% 0 0
53t,656 $t70,232
Base Infiation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribu[ion From 71F District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax Rate (Only if Locai-Effort TIF)
Bonds
Bonds Dated
Firstfnterest Date
Underwriters Discount
NA
NA
NA
LGA/HACA Loss:
Will Annual Locai Contribution Be Made (Yes or No)? (2)
I.S.Q �625 Equalized Tax Capacity Rate
I.S.D n625 Sales Ratio .
City Sa1es Ratio & Taxable Net Tax Capacity
Present Vaiue Date & Rat2
58.844,444 S8,B44,444
0 0
$170,232
$170,232
NA
148.553 % (Payable 2000)
0.0000 % (NA tor Housing)
5%-10°/, (See Note �3)
0.00%,
NA
Note (Pav-AS-You-Go1
Note Dated
Noie Rate
Yes
NA
NA
NA
04/O7/00
09/Oil00
B.00 %
NA
5.00°/
(1) See "Schedule of Pro�ect Values" for calculatwn of Market Vaiues and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be availabie for debt servicz.
(3J Assumes admin. retainage of 5% on apartments a�d 10 % on touvnhomes and retaif sQace.
Prepared by: Springsted Incorporaled fP��nted on 09/78/2000 at 9:59 AM) C-3 Tif091800b.xis
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Assum tions Re ort
00 —Iz�e R
City of St. Paui, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
IJorth Quadrant (Sibiey Park) Housing Devefopment
Scenario C- Phase One Townhomes Only (26 years, S% note)
Type of Tax Increment Financing District
Mazimum Duration oi TIF District
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: Frst SO
Excess
Original Net Tax Capaciry (7)
0.00%
0.00 %
0
0
$2,514
AssessmenUCollection Year
Base Estimated Market Value
Increase in Estimated Market Value (1)
7otai Estimated Market Value
Times: Rrst
Excess
Tofal Net Tax Capacity (1)
25 years from ist increment
09lOt/00
iZ01/27 (26 Years of Increment)
2400l2061
�5251,427
2001/2002 2002/2003 2003/2004 2004/2005
$251,427 $251,427 $251,427 $251.427
735,705 6,653,3�3 6,653,373 6,653,373
�987,132 $6,904,800 $6,904,800 $6,904,800
SO 0.00 (
0.00%
Base Inflation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribution From TiF District
Administretive Retainage Percent (maximum = 10°/,)
Pooling Percent
CityTax Rate jOniy'rf Locai-Effort TIF)
Bonds
Bonds Dated
First Interest Date
Undervvriters Discount
NA
NA
NA
IGA/HACA Loss:
Will Annual Local Contribution Be Made (Yes or No)? (2)
I.S.D #625 Equalized 7ax Capacity Rate
I.S.D k625 Sales Ratio �
City Sa�es Ratio & Taxable Net Tax Capacity
Present Vatue Date 8 Rate
0 0
0 0
$9.871 $95,157
0 0
0 0
595,157 595,157
NA
148.553%, (Payable 2000)
0.0000°/, (NA tor Housing)
5°/,•10% (See Note #3)
0.00%
NA
Note (Pav-As-You-Go)
Note Dated
Nofe Rate
Yes
NA
NA
NA
09/07/00
09/07/00
8.00 %
NA
5.00%
(1) See "Schedule oF Project Values" forcalculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upiront and wlll not be availabie for debt service.
(3j Assumes admin. retainage of 5% on aparlments and 10 % on townhomes and retail space.
Prepared by: Springsted Incorporated (printed on 09l78/2000 at 10:00 AM) C-5 Tif097800c.xls
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Council File # Op � �DO�
Resolution #
Green sheet # �e��9�t
� RESOLUTION
OF SAINT PAUL, M
S�
Presented By
Referred To
Committee: Date
1 RESOLUTION APPROVING THE
2 AMENDMENT OF THE TAX INCREMENT FINANCING PLAN
3 FOR TAX INCREMENT FINANCING DISTRICT
4 NO. 1 (NORTH QUADRANT)
7 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
9 Section 1. Recitals
l0
11 1.01 On June 23, 1999, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
12(the "Authority") established the North Quadrant Redevelopment Project Area (the "Redevelopment Project
13Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan").
14
15 1 A2 On August 9, 2000 City Council approved the creation, within the Redevelopment Project Area,
16of TaY Increment Financing District No. 1(North Quadrant) (the "Tas Increment District") and the adoption
17of a Tax Increment Financing Plan therefor (the °Tax Increment Plan"), all pursuant to and in accordance with
1 sMinnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act") and Laws of Minnesota
192000, Chapter 490, Article 11, Section 40 (the "Special Law").
20
21 1.03 The Authority has determined that it is necessary to amend the T� Increment Plan to, among
2 2other things, authorize the issuance of bonded indebtedness of the Authority to finance a portion of the costs
2 3of the development as described in the amendment to the T� Increment Plan (the "Amended Plan"). The
24Autharily has performed all actions required by law to be performed prior to the amendment of the Tax Incre-
2 5ment Plan, including, but not limited to, notification of Ramsey County and Independent School District
2 6Number 625, which have t�ing jurisdiction over the property included in the Tax Increment District, and has
2 7requested that the City approve the Amended Plan following the holding of a public hearing upon published
2 sand mailed notice as required by law.
29
3 0 Section 2. Findines for the Amendment of the Tax Increment Financing Plan.
31
3 2 2.01 The City Council hereby finds that the amendment of the Tax Increment Plan for T� Increment
3 3Financing District No. 1(North Quadrant) is intended and, in the judgment of the City Council, its effect will
3 4be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the construction in the
3 5City of affordable and mixed income housing, will increase employment and otherwise promote certain
3 6public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment
3 7Financing Plan.
1207814.1
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1 2.02 The City Council hereby reaff rms its previous findings that Tas Increment Financing District
2No. 1(North Quadrant) qualifies as an"housing districY' within the meaning of the Ta�c Increment Act and
3the Special Law for the foilowing reasons:
5 The properry to be included in the Tax Increment Distdct is located in the Northeast
6 quadrant of the City, i.e. within the 15 acre site bounded by Interstate 94 on the north and
7 east, Jackson Street on the west and Seventh Street on the south, together with the west
8 side of Jackson Street to midblock between Interstate 94 and South Street.
9
1 o Twenty percent of the housing units the Tas Increment District wiil be occupied by
11 individuals whose family income is equal to or less than 50 percent of area median gross
12 income and an additiona160 percent of the units will be occupied by individuals whose
13 family income is equal to or less than 115 percent of azea median gross income. Twenty
14 percent of the units in the TaY Increment District will not be subject to any income
15 limitations.
16
17 Family income means the median gross income for the City as detennined under section
18 42 of the Internal Revenue Code of 1986, as amended. The income requirements will be
19 satisfied if the sum of qualified owner-occupied units and qualified residential rental units
2 0 equals the required total number of qualified units. Owner-occupied units will initially be
21 purchased and occupied by individuals whose family income safisfies the income
2 2 requirements. For residential rental property, the income requirements apply for the
2 3 duration of the Tax Increment District.
24
2 5 The fair mazket value of the improvements which are constructed in the Tax Increment
2 6 District for commercial uses or for uses other than owner-occupied and rental mixed-
2 7 income housing wili not consist of more than 20 percent of the total fair mazket value of
2 8 the planned improvements in the development plan or agreement. The fair mazket value
2 9 of the improvements will be determined using the cost of construction, capitalized
3 0 income, or other appropriate method of estimaring market value.
31
32 2.03 The City Council hereby reaffirms the following findings:
33
3 4 (a) The City Council further finds that the proposed development, in the opinion of
3 5 the City Councii, would not occur solely through private investment within the reasonably
3 6 foreseeable future and, therefore, the use of t� increment financing is deemed necessary. The
3 7 specific basis for such finding being:
38
3 9 The parcels on which the development will occur would not be developed in the
4 0 reasonably foreseeable future because they aze currently used for surface parking,
41 which use generates significant income to the current owner of the property
4 2 considering the owner's minimal investment in the property.
43
44 (b) The City Council fiu•ther finds that the Ta�c Increment Financing Plan, as amended,
4 5 conforms to the general plan for the development or redevelopment of the City as a whole. The
4 6 specific basis for such finding being:
47
4 8 The T� Increment Financing Plan will generally compliment and serve to implement
4 9 policies adopted in the City's comprehensive plan. The development contemplated is in
5 0 accordance with the existing zoning for the property.
izo�aie.i
1 (c) The City Council fiuther finds that the Tax Increment Financing Plan, as amended, pp� (pO�
2 will afford maYimum opportunity consistent with the sound needs of the City as a whole for the
3 development of the Tas Increment District by private enterprise. The specific basis for such
4 fmding being:
6 The proposed development to occur within the Tax Increment District is housing. The
7 development wili increase needed affordabie and mixed income housing in the City and
8 will increase the mazket valuation of the City.
l0 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
11 the City Council hereby finds that the increased mazket value of the property to be developed within the
12 T� Increment District that could reasonably be expected to occur without the use of tas increment
13 financing is $-0- , which is less than the market value estimated to result from the proposed
14 development (i.e., $15,065,744) after subtracting the present value of the projected tas increments for
15 the maxiinum duration of the Tas Increment District (i.e., $3,481,295). In making these fmdings, the
16 City Council has noted that the properiy has been undeveloped for many yeazs and would likely remain
17 so if taY increment financing is not available. Thus, the use of tax increment fmancing will be a
18 positive net gain to the City, the School District, and the County, and the ta�c increment assistance does
19 not exceed the benefit which will be derived therefrom.
20
21 2.04 The provisions of this Section 2 aze hereby incorporated by reference into and made a part of
22the Amended Plan.
23
24 Section 3. Apnroval of Amendment of the T� Increment Financine Plan.
25
2 6 3.01 The amendment of the Tas Increment Plan for T� Increment Financing District No. 1(North
2 7Quadrant) is hereby approved and the Amended Plan therefor is hereby adopted.
28
2 9 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
3 Ocounsei are authorized and directed to proceed with the implementation of the T� Increment District and the
31Amended Plan and for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of
3 2the Authority for its consideration all further plans, resolutions, documents and contracts necessary for this
3 3purpose.
34
3 5
Requested by Department of:
Planninq & Economic Development
�� ���
By:
Adoption
Form Approved by Cit� A torney
Certifi by Council Secretary BY�
By: l�` . � ��9 .. � _ -
�� A � � Approved by Mayor for Submission to Council
Approved by Mayor: Date 4
gy: ,y��c�qq� By:
-�vii
i
1207814.1
Adopted by Council: Date � cX . S�, 2-u aa
L
DEPARTMENT/OFFICE/COUIYCIL: DATE INI'CIATED GREEN SHEET No.: 101694 ��' �p
PED 10/13/00
CONTACP PERSON & PHONE: AiE IIvi1'tnI1nATE
AI Carlson 6-6616 � 2 n�s�zT�r Dm _���� s cmr covxcu.
MUSC BE ON COUNCIT, AGENDA BY (DATE) �IGN
3 CITYATIORNEY CITYCLERK
October 25 � LOOO gUMBER FINANCIAL SERV DIR _ _ FAIANCIAL SERV/ACCI"G
ROI7'1'ING 4 MAYOR (OR ASST.)� i Bob Schreier
ORDER
TOTAL # OF SIGNATURE PAGES _1_(CLIP ALL LOCATIONS FOR STGNATORE)
ncrcox �2uES�rEn: Public Aearing to adopt resolution approving the amendment of the T� Increment Financing
Plan for Tax Increment Financing District No. 1(north qvadraut)
RECOMIdENDATIONS: Approve (A) or Reject (R) PERSONAL SE$VICE CONTRACCS MUST ANSWER'fFIE FOI.I.OWING
QUESTIONS:
PLANNING COMIvIISSION L Has this person/fum ever worked under a wntract for this department?
CIB COMMITTEE Yes No
CML SERVICE COMivffSSION 2. Has this person/fitm ever been a ciry empiayee?
Yes No
3. Does this person/fiim possess a skill not nomially possessed by any curtent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INII7ATING PROBLEM, ISSUE, OPPORTUYIT'Y (Who, What, When, Where, Why):
The purpose of the resolution is to amend the Tax Increment Financing District No. 1(north quadrant) to 1) allow
the issuance of a tax exempt tas increment bond to finance in part the construction of the Essex on the Pazk
Townhomes and 2) to modify the taY increment budget to reflect requirements under staxe law for monitoring
purposes by State Auditar. The proposed amendments do not change or modify the total projecY costs for the Essex
on the Park as originally proposed to the council.
ADVANI'AGES IF APPROVF.D:
DTSADVAN'['AGES IF APPROVED:
DLSADV.4NTAGES IF NOT APPROVED;
TOTAL AMOilN1' OF'1RANSACTION: $ COST/REVENUE BUDGETED:
FUNDING SOURCE: ACl'iVITY NOMBER:
FINANCIAL IlVFORMATION: (EXPLAIN)
\�Ped�y5l�SAared�KAPLANUgmsM1Cfrm
pa_�oog,
Interdepartmental Memorandum
CI'IS' OF SAINT PAUL
TO: Council President Bostrom
Councilmember Benanav
Councilmember Blakey
Councilmember Coleman
Councilmember Harris
Councilmember Lantry
Councilmember Reiter
FROM: Brian Sweeney
Allen Carlson �(j
DATE: October 13, 2000
RE: PUBLIC HEARING: RESOLUTION APPROVING THE AMENDMENT
OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO.1(NORTH QUADRANT)
Purpose
The purpose of this public hearing is to receive public comment and request the City Council to
approve a resolution amending the Tas Increment Financing Plan (the "Plan") for the Tas
Increment Financing District No. 1(North Quadrant) (the "District") which was originally
adopted by the Housing and Redevelopment Authority of the City of Saint Paul on August 9,
2000.
Background
The District is bounded by '7t 8"' , Wacouta and Sibley Streets. The District was adopted to
allow tas increments to be generated to assist in the financing of a proposed 114 multifamily
rental building with 10,000 square feet of commercial space (the "Sibley Pazk Apartments") and
a 3 8 unit for sale town home development (the "Essex on the Pazk"). Twenty-two percent of the
rental units will be affordable to households at ar below 30% of the azea median income and
18% of the rental units will be affordable to households at or below 50% of the area median
income.
Pursuant to State statutes any time a change in the plan is proposed a public hearing must be
conducted. Staff is proposing the following amendments to the Plan:
pp_�ooq
Amend Subsection 9 of the Plan which includes the proposed budget for the Plan. The
budget is being amended to add for State Auditing purposes all City/FIRA funds that will
be used to assist in the development of the proposed housing. The original budget only
included tax increment funds. This proposed change does not change the fivaucing or
originally approved budgeted amounts for the project. The added funds to the budget for
State Auditing purposes include I3RA Enterprise funds, federal HOME funds and
Metropolitan Council that were awazded to the City for the project.
Amend Subsection 10 to a11ow up to $1.5 million of bonded indebtedness to finance
public costs related to the construction of the Essex on the Pazk development. The
original Plan only allowed expendihues authorized by the Plan to be paid on a pay-as-
you-go basis. Because of the long duration of the District (25 yeazs) it became
unpossible to fmd any banks willing to purchase the pay-as-you-go note for the
ownership or Essex on the Park project. Therefore, the only viable and cost effective
fmancing tool to fund the Essex on the Pazk using tax increments is issuance of a IIRA
tas increment tax exempt revenue bond. Currently, it is estimated that the bond issue
would be about $13 million dollazs. The HRA authorizes issuance of the revenue bond.
Recommendation
Staff recommends approval of the attached resolution amending the Tax Increment Financing
Plan for the Tax Increment Financing District No. 1(North Quadrant).
Statement of the Council President
Being duly authorized by the City Council to conduct this Public Hearing, the heazing is now
open. This Public Hearing is called for the proposed purpose to consider the following:
Amendment of the Tax Increment Financing Plan for the Tax Increment Financing
District No.l (North Quadrant).
Notice of time, place, and purpose of this hearing was published in the Saint Paul Legal Leger on
October 6, 2000. The affidavit of the publication of the Notice of Public Hearing will be made a
part ofthese proceedings.
Is there anyone who wishes to be heard on this item? If not, the Chair will declare this Public
Hearing adjourned.
Attachments
Resolution approving amendment to the T� Increment Financing Plan for the Tax
Increment Financing Dishict No. 1(North Quadrant)
Amended Tax Increment Financing Plan for the Tax Increment Financing District No. 1
(North Quadrant)
K:\S1�ared�CARLSOAP�sherman\CC'17F AMIND 12P'I 102500.wpd
�
i Y �,
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRANT)
(a housing district)
wiChin the
NORTH QUADRANT REDEVELOPMENT PROJECT AREA
HOUSII3G AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: August 9, 2000
Amended: October 25, 2000
This document was drafted by: BRIGGS AND MORGAN, (MIVID)
Professional Association
2200 First National Bank Bldg.
St. Paul, MN 55101
(651) 223-6625
,
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTFi QUADRANT)
Paae
Subsection 1.
Subsection 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6
Subsection 7
Subsection 8
Subsection
Subsection
Subsection
Subsection
9.
10.
11.
12.
Subsection 13
Subsection 14
Subsection 15
Subsection 16
Subsection 17
Subsection 18
Subsection
Subsection
Subsection
Subsection
Subsection
Subsection
19.
20.
21.
22.
23.
24.
Subsection 25
Subsection 26
Subsection 27
Subsection 28
Subsection 29
Forward . . . . . . . . . . . . . . . . .
Statutory Authority . . . . . . . . . . .
Statement of Objectives . . . . . . . . .
Redevelopment Plan Overview . . . . . . .
Parcels to be Included in Tax Increment
Financing District No. 1 . . . . . . . .
Parcel in Acquisition . . . . . . . . . .
Development Activity in Tax Increment
Financing District No. 1 for which
Contracts have been Signed . . . . . . .
Other Specific Development Expected to
Occur within Redevelopment Area . . . . .
Estimated Cost of Project . . . . . . . .
Estimated Amount of Bonded Indebtedness .
Sources of Revenue . . . . . . . . . . .
Estimated Captured Tax Capacity and
Estimate of Tax Increment . . . . . . . .
Type of Tax Increment Financing District
Duration of Tax Increment Financing
District . . . . . . . . . . . . . . . .
Estimated Impact on Other Taxing
Jurisdictions . . . . . . . . . . . . . .
State Tax Increment Financing Aid ....
Modification of Tax Increment Financing
District and/or Tax Increment Financing
Plan . . . . . . . . . . . . . . .
Modifications to Tax Increment Financing
District . . . . . . . . . . . . . .
Administrative Expenses . . . . . . . . .
Limitation of Increment . . . . . . . . .
Use of Tax Increment . . . . . . . . . .
Notification of Prior Planned
Improvements . . . . . . . . . . . . . .
Excess Tax Increments . . . . . . . . . .
Requirements for Agreements with the
Developer . . . . . . . . . . . . . .
Other Limitations on the Use of Tax
Increment . . . . . . . . . . . . . . . .
County Road Costs . . . . . . . . . . . .
Assessment Agreements . . . . . . . . . .
•Administration of the Tax Increment
Financing District . . . . . . . . . .
Financial Reporting Requirements . . . .
. 1
. 1
. 1
. 2
. 2
. 3
. 3
. 3
. 3
. 4
. 4
. 5
. 5
. 6
. 7
. 8
. 9
. 9
10
10
12
12
13
13
14
15
15
16
16
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EXHSBIT A- Map of Tax Increment District No. 1
EXHIBIT B- Map of North Quadrant Redevelopment Project Area
EXHIBIT C- Projected Tax Increments
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TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FII3ANCING DISTRICT I30. 1(I30RTH QUADRANT}
Subsection 1. Forward. The Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "HRA"), and
its staff and consultants have prepared the following information
for the establishment of Tax InCrement Financing District No. 1
(North Quadrant), a housing district (the "Tax Increment
DistriCt"). The Tax Increment District is located within the
North Quadrant Redevelopment Project Area (the "Redevelopment
Project Area") established by the HRA pursuant to the North
Quadrant Redevelopment Plan adopted by the HRA on June 23, 1999
(the "Redevelopment Plan"). The Redevelopment Plan was approved
by the Planning Commission on June 23, 1999.
Subsection 2. Statutory Authoritv. There exist areas
within the City of Saint Paul (the "City") where public
involvement is necessary to cause development to occur. To this
end, the HRA has certain statutory powers pursuant to special
legislation (Laws of Minnesota, Chapter 490, Article li, Section
40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Tax Increment Financing Act" or "TTF Act"),
to assist in financing public costs related to a project.
Subsection 3. Statement of Obictives. The Tax Increment
Financing District consists of 2 parcels of land and adjacent and
internal rights-of-way. A map showing the boundaries of the Tax
Increment District is attached as Exhibit A. The Tax Increment
Financing Di5trict is being created to facilitate a 38 unit owner
occupied townhome development (the "Owner Occupied Development")
and a 114 unit rental apartment facility (the "Rental
Development"). The tax increment financing plan is expected to
achieve many of the objectives outlined in the Redevelopment Plan
for the North Quadrant Redevelopment Project Area. The following
are some of the objectives being facilitated by this Tax
Increment Financing Plan.
A. Provide Affordable Housing for Saint Pau1 Residents.
The available housing in the downtown area of the city will
expand by more than 152 units with the completion of the housing
development Contemplated by this Tax Increment Financing Plan.
B. To Redevelop Underused Pro�ertv.
The Tax Increment District is a site that has been
underutilized for many years. The majority of the area comprising
the site has been used for surface parking. New commercial,
cultural and recreational investments are jeopardized by lack of
development in the downtown area. 25 of the units in the rental
portion of the development will be affordable to households at or
1183029.4
t'�o -100�
below 300 of Che area median income and 23 units will be
affordable to households at or below 50% of the area median
income. 23 of the owner-occupied units will be affordable to
households between 80o and 115% of area median income.
In order to protect past investments and encourage new
development in the downtown area new housing development needs to
be created to encourage additional private investment.
C. Expand the Tax Base of the Citv of Saint Paul.
It is expected that the taxable market value of parcels in
the Tax Increment District will increase by approximately
$21,280,000.
The activities contemplated in the Redevelopment Plan and
this Tax Increment Financing Plan do not preclude the undertaking
oE other qualified development or redevelopment activities.
These activities are anticipated to occur over the life of the
Tax Increment District and the Redevelopment Project.
Subsection 4. RedeveloAment Plan Overview.
1. Property to be Acquired - Selected property located
within Tax Increment Financing District or
Redevelopment Project Area may be acquired by the HRA.
2, Relocation - if necessary, complete relocation services
are available pursuant to Minnesota Statutes, Chapter
117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to a
development and completion of the necessary legal
requirements, the HRA may sell or assist a developer
with the cost of selected properties within Tax
Increment Financing District or Redevelopment Project
Area, or may lease land or facilities to a developer.
4. The xRA may perform or provide for some or all
necessary acquisition, construction, relocation,
demolition, and required utilities and street work
within Tax Increment Financing District No. 1.
Subsection 5. Parcels to be Included in Tax Increment
Financina Di5trict No. 1. The following parcels located in the
City of Saint Paul, Ramsey County, Minnesota:
PIN NO.
312922440028
312922440029
ADpRESS
221 7`" Street East
440 Sibley Street
1183029.4 2
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FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1 CAN BE
OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA.
Subsection 6. Parcel in Acquisition. The HRA may finance
a11 or a part of the costs of acquisition of the parcels
identified in Section 5 of this Tax Increment Financing Plan.
The following are conditions under which properties not
designated to be acquired may be acquired at a future date:
(1) The HRA may acquire property by gift, dedication,
condemnation or direct purchase from willing sellers in
order to achieve the objectives of the tax increment
financing plan; and
(2) Such acquisitions will be undertaken only when there is
assurance of funding to finance the acquisition and
related costs.
Subsection 7.
The following contracts have been or wi11 be entered into by the
HRA and the persons named below:
No development agreements have been entereci into at
this time. However, the HRA anticipates entering into
a development agreement with an entity to be formed by
Sherman Associates, Inc. and The Lander Group (the
"Developer") with respect to the development of a 38
unit owner occupied townhome development and a 114 unit
rental apartment facility.
Subsection 8. Other Specific Development Expectied to Occur
within Redevelopment Area.
Although no specific additional developmenCs have been
identified at this time, the HRA expects that the
acquisition and construction of the above housing
development will encourage additional development in
the Redevelopment Project Area.
Subsection 9. Estimated Cost of Proiect. The HRA has
determined that it will be necessary to provide assistance for
certain public costs of certain housing activities. To
facilitate the development of the Tax Increment Financing
District, this Tax Increment Financing Plan authorizes the use of
tax increment financing to pay for the cost of certain eligible
expenses. The estimate of public costs and uses of funds
associated with Tax�Increment Financing District is outlined in
the following table:
1183029.4 3
Da-a°g
(Owner Occupied Development)
Tax Metropolitan
Increments Council Grant
Uses
Underground Parking
Site Development and
Construction Costs
Interest
Capitalized Interest
Administrative
$ 950,000
300,000
1,974,000
90,000
345.000
TOTAL $3,659,000
(Rental Development)
Uses
Site
Development and
Construction
Costs
Parking
Interest
Administrative
TOTALS
HRA Federal
Tax Enterprise Home
Increments Fund Loan Loan
$ 840,000
1,600,000
3,300,000
340.400
$6,080,000
$250,000 $750,000
$450,000
$450,000
$250,000 $750,000
Metro�oliCan
Council Loan
$500,000
: �� ���
Estimated costs associated with Tax Increment Financing District
are subject to change and may be reallocated between line items
by the HRA. The cost of all activities to be financed by the tax
increment will not exceed, without formal modification, the
budget for the tax increments set forth above.
Subsection 10. Estimated Amount of Bonded Indebtedness. The
HRA may issue its tax increment revenue bonds in an amount not to
exceed $1,500,000 to finance public costs of the Owner Occupied
Development. The expenditures authorized by this Tax Increment
Financing Plan for the Rental Development will be paid for on a
pay-as-you-go basis.
Subsection 11. Sources of Revenue. The costs outlined in
Section 9 above will be financed through the annual collection of
tax inczements, and the loans or grants given by or through the
1183029.4 4
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.
City or HRA as set forth above. The total cost of the Rental
Development are estimated to be approximately $17,000,000. The
total cost of the 38 unit Owner Occupied Development is estimated
to be approximately $9,500,000.
Additional sources o£ funds for the Rental Development wi11
be assistance directly from the Minnesota Housing Financing
Agency in the amount o£ $700,000 and from the Family Housing Fund
in the amount of $150,000. The Developer will receive a$450,000
grant directly from the Minnesata Housing Financing Agency for
the Owner Occupied Development. The Developer will contribute
equity or obtain private financing for the remaining costs of the
Developments.
Subsection 12
of Tax Increment.
Financing District
1999.
Estimated Caotured Tax Capacity and Estimate
The most recent tax capacity of Tax Increment
is estimated to be $10,577 as of January 2,
The estimated captured tax capacity of Tax Increment
Financing District at completion is estimated to be $254,812.
The HRA elects to retain all of the captured tax capacity to
finance the costs of Tax Increment Financing District No. l. The
HRA elects the method of tax increment computation set forth in
Minnesota Statutes, Section 469.177, subd. 3(a).
SubseCtion 13. �m� of Tax Increment Financina District.
Tax Increment Financing District No. 1 is a housing district
established, pursuant to Minnesota Statutes, Section 469.174,
Subd. 10, and the Special Law, and will satisfy the requirements
described below.
The Tax Increment Einancing District consists of a project,
or a portion of a project, intended for occupancy, in part, by
persons of low and moderate income as defined in Minnesota
Statutes, Chapter 462A, Title II, of the National Aousing Act of
1934; the National Housing Act of 1959; the United States Housing
Act of 1937, as amended; Title V of the Housing Act of 1949, as
amended; any other similar present or future federal, state, or
municipal legislation, or the regulations promulgated under any
of those acts. Twenty percent of the units in the development in
the Tax Increment District must be occupied by individuals whose
family income is equal to or less than 50 percent of area median
gross income and an additional 60 percent of the units in the
development in the Tax Increment District must be occupied by
individuals whose family income is equal to or less than 115
percent of area median gross income. Twenty percent of the units
in the development in the Tax Increment District are not subject
to any income limitations. Family income means the median gross
income for the area as determined under section 42 of the
Internal Revenue Code of 1986, as amended. The income
1183029.4 5
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requirements are deemed to be satisfied if the sum of qualified
owner-occupied units and qualified residential rental units
equals the required total number of qualified units. Owner-
occupied units must be initially purchased and occupied by
individuals whose family income satisfies the income requirements
of this subdivision. For residential rental property, the income
requirements of this subdivision apply for the duration of the
Tax Increment District.
The development in the Tax IncremenC Distric� does not
qualify if the fair market value of the improvements which are
constructed for cominercial uses or for uses other than owner-
occupied and rental mixed-income housing consists of more than 20
percent of the total fair market value of the planned
improvements in the development plan or agreement. The fair
market value of the improvements may be determined using the cost
of construction, capitalized income, or other appropriate method
of estimating market value.
In establishing Tax Increment Financing District, the
determination has been made that the anticipated development
would not be reasonably expected to occur solely through private
investment within the reasonably foreseeable future and that
therefore the use of tax increment financing is deemed necessary.
In making this determination the HRA has relied on its own
knowledge of the development history of the area and on
representations made by the Developer.
The HRA and the City have determined that the proposed
development of the Tax Increment District would not reasonably be
expected to occur solely through private investment within the
reasonably Eoreseeable future and that the increased market value
pf the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the
increase in the market value estimated to result from the
proposed development after subtracting the present value of the
projected tax increments for the maximum duration of Che district
permitted by the plan.
Subsection 14. Duration of `rax incremenc r�z�a�.����u Ll.71�11�.t-•
The duration of Tax Increment Financing District will be 25 years
from the receipt of the first tax increment. The date of receipt
of the first tax increment is expected to be July of 2002.
Attached as Exhibit C is the projected receipt of tax increments
from Tax Increment Financing District.
Subsection 15. Estimated Impact on Other '1'axincr �urisuic-
tions. The estimated impact of Tax Increment Financing District
on the other taxing jurisdictions assumes construction would have
' occurred without the creation of Tax Increment Financing
District. If the construction is a result of tax increment
financing, the impact is $0 to other entities. Notwithstanding
1183029.4 6
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.
the fact that the fiscal impact of the other taxing jurisdictions
is $0, due to the fact that the construction would not have
occurred without the assistance of the HRA, the following
estimated impact of Tax Increment Financing District would be as
follows if the "but for" test was not met:
1183029.4
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Subsection 16. State Tax Increment Einancina Aid. Pursuant
to Minnesota Statutes, Section 273.1599, for tax increment
financing districts for which certification was requested a£ter
April 30, 1990, a municipality incurs a reduction in state tax
increment £inancing aid (RISTIFA) applied to the municipality's
Local Government Aids (LGA) first and, I3omestead and Agricultural
Aid (HACA) second, in an amount equal to a fornlula based upon the
equalized qualifying captured tax capacity (QCTC) of Tax
Increment Financing District.
Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6,
the HRA may choose an option to the LGA-HACA penalty, Tax
Increment Financing District is exempt from the LGA-HACA
reduction if the HRA elects to make a qualifying local
contribution at the time of approving the Plan. To qualify for
the exemption in each year, the HRA must make a qualifying local
contribution to the project of a certain percentage. The local
contribution for a housing district is 5 percenC. The maximum
local contribution for all districts in the City in any year is
limited to two percent of the City's net tax capacity, after
which point the HRA must make an additional contribution equal to
the lesser of (a) 0.25 percent of the City's net tax capacity or
(b) 3 percent of tax increment revenues for that year.
The amount of the local contribution must be made out of
unrestricted money of the HRA or the City, such as the general
fund, a property tax levy, or a federal or state grand-in-aid
which may be spent for general government purposes. The local
contribution may not be made, directly or indirectly, with tax
increments or developer payments. The local contribution must be
used to pay project costs and cannot be used for general
government purposes.
The HRA elects to make the annual local coatribution to the
project to exempt itself from the LGA-HACA penalty. The HRA will
pay for costs of the project described in this Plan, in an amount
equal to 5 percent of annual tax increment for Tax Increment
Financing District, subject to the limitations described above,
in any year in which such amount exceeds 2 percent of the City's
net tax capacity. Such contribution may be in form of either
lump sum or annual payments (in addition to tax increment
payments) towards costs identified in this Plan or other costs
related to that development. The contribution may also be made
in the form of public improvement financed by the City or other
unit of government with unrestricted funds.
,
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Subsection 17. Modification of Tax Increment Financina
District and/or Tax Sncrement Financina Plan. As of August 9,
2000, no modifications to Tax Increment Financing District No.
or the Tax InCrement Financing Plan therefore have been made.
Subsection 18. Modifications to Tax Increment Financina
District
In accordance with Minnesota Statutes, Section 469. 175,
Subd. 4, any:
1. reduction or enlargement of the geographic area of the
Tax Increment Financing District;
2. increase in amount of bonded indebtedness to be
incurred, including a determination to capiCalize
interest on debt if that detennination was not a part
of the original plan, or to increase or decrease the
amount of interest on the debt to be capitalized;
3, increase in the portion of the captured net tax
capacity to be retained by the HRA;
4. increase in total estimated tax increment expenditures;
or
5. designation of additional property to be acquired by
the HRA,
shall be approved upon the notice and after the discussion,
public hearing and findings required for approval of Che original
plan.
The geographic area of District may be reduced, but shall not be
enlarged after five years following the date of certification of
the original net tax capacity by the county auditor. The
requirements of this paragraph do not apply if (1) the only
modification is elimination of parcel(s) from Tax Increment
Financing District and (2)(A) the current net tax capacity of the
paTCel(s) eliminated from the Tax Increment Financing District
equals or exceeds the net tax capacity of those parcel(s) in the
Tax Increment Financing District's original neC tax capacity or
(B) the HRA agrees that, notwithstanding Minnesota Statutes,
Section 469. 177, Subd. 1, the original net tax capacity will. be
reduced by no more than the current net tax capacity of the
parcel(s) eliminated from the Tax Increment Financing District.
The ARA must notify the County Auditor of any modification that
reduces oz enlarges the geographic area of the Tax Increment
Financing District or the Redevelopment Project Area.
Modifications to Tax Increment Financing District in the form of
a budget modification or an expansion of the boundaries will be
recorded in the Tax Increment Financing Plan.
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Subsection 19. Administrative Ex�enses.
In accordance with Minnesota Statutes, Section 469.174,
Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3,
administrative expenses means all expenditures of the HRA, other
than:
1. amounts paid for the purchase of land or amounts paid
to contractors or others providing materials and
services, including architectural and engineering
services, directly connected with the physical
development of the real property in the district;
2, relocation benefits paid to or services provided for
persons residing or businesses located in the district;
or
3. amounts used to pay interest on, fund a reserve £or, ox
sell at a discount bonds issued pursuant to Minnesota
Statutes, Section 469.178.
Administrative expenses also include amounts paid for
services provided by bond counsel, fiscal consultants, and
planninq or economic development consultants. Tax increment may
be used to pay any authorized and documented administrative
expenses for the Tax Increment Financing District up to but not
to exceed 10 pezcent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h,
tax increments may be used to pay for the county's actual
administrative expenses incurred in connection with the Tax
Increment Financing District. The county may require payment of
those expenses by February 15 of the year following the year the
expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11,
the county treasurer shall deduct an amount equal to 0.1 percent
of any increment distributed to the HRA and the county treasurer
shall pay the amount deducted to the state treasurer for deposit
in the state general fund to be appropriated to the State Auditor
for the cost of financial reporting of tax increment financing
information and the cost of examining and auditing authorities'
use of tax increment financing.
Subsection 20. Limitation of Increment.
Pursuant to Minnesota Statutes, Section 469. 176, Subd.
1(a), no tax increment shall be paid to the HRA for the Tax
IncremenC FinanCing District after three (3) years from the date
' of certification of the Original Net Tax Capacity value o£ the
taxable property in the Tax Increment Financing District by the
County Auditor unless within the three (3) year period:
1183029.4 �-�
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(a) bonds have been issued pursuant to Minnesota Statutes,
Section 469. 178, or in aid of a project pursuant to
any other law, except revenue bonds issued pursuant to
Minnesota Statutes, Sections 469.152 to 469.165, or
(b) the HRA has acquired property within the Tax Increment
Financing Di5trict, or
(c) the HRA has constructed or caused to be constructed
public improvements within the Tax Increment Financing
District.
The tax increment pledged to the paymenC of bonds and
interest triereon may be discharged and may be terntinated if
sufficient funds have been irrevocably deposited in the debt
service fund or other escrow account held in trust for all
outstanding bonds to provide for the payment of the bonds at
maturity or redemption date.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6:
if after four years from the date of certification of
the original net tax capacity of the tax increment
financing district pursuant to Minnesota Statutes,
Section 469.177, no demolition, rehabilitation or
renovation of property or other site preparation,
including qualified improvement of a street adjacent to
a parcel but not instailation of utility service
including sewer or water systems, has been commenced on
a parcel located within a tax increment financing
district by the authority or by the owner of the parcel
in accordance with the tax increment financing plan, no
additional tax increment may be taken from that parcel
and the original net tax capacity of that parcel shall
be excluded from the original net tax capacity of the
tax increment financing district. If the authority or
the owner of the parcel subsequently commences
demolition, rehabilitation or renovation or other site
preparation on that parcel including qualified
improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the
activity has commenced and the county auditor shall
certify the net tax capacity thereof as most recently
certified by the commissioner of revenue and add it to
the original net tax capacity of the tax increment
financing district. The county auditor must enforce
the provisions of this subdivision. For purposes of
this subdivision, qualified improvements oE a street
are limited to '(1) construction or opening of a new
street, (2) relocation of a street, and (3) substantial
reconstruction or rebuilding of an existing street.
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Subsection 21. Use of Tax Increment.
The HRA hereby determines that it will use 100 percent of
the captured net tax capacity of taxable property located in the
Tax Tncrement Financing District for the following purposes:
1. to pay the principal of and interest on bonds used to
finance a project;
2. to finance, or otherwise pay the capital and
administration costs of the 22edevelopment Project Area
pursuant to the Minnesota Statutes, Sections 469.124 to
469.134;
3. to pay for project costs as identified in the budget;
4. to finance, or otherwise pay for other purposes as
provided in Minnesota Statutes, Section 469.1 76, Subd.
4;
5. to pay principal and interest on any loans, advances or
other payments made to the HRA or for the benefit of
Redevelopment Project Area by the developer;
6. to finance or otherwise pay premiums and other costs
for insurance, credit enhancement, or other security
guaranteeing the payment when due of principal and
interest on tax increment bonds or bonds issued
pursuant to the Plan or pursuant to Minnesota Statutes,
Chapter 462C and Minnesota Statutes, Sections 469.152
to 469.165, or both; and
7. to accumulate or maintain a reserve securing the
payment when due of the principal and interest on the
tax increment bonds or bonds issued pursuant to
Minnesota Statutes, Chapter 462C and Minnesota
Statutes, Sections 469.152 to 469.165, or both.
These revenues shall not be used to circumvent any levy
limitations applicable to the HRA nor for other purposes
prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Subsection 22. Notification of Prior Planned Improvements.
The HRA shall, after due and diligent search, accompany its
request £or certification to the County Auditor or its notice of
the Tax Increment Financing District enlargement with a listing
of all properties within the Tax Increment Financing District or
area of enlargement for which building permits have been issued
during the eighteen (18) months immediately preceding approval of
the Plan by the municipality pursuant to Minnesota Statutes,
Section 469.175, Subd. 3. The County Auditor shall increase the
original value of the Tax Increment Financing District by the
value of improvements for which a building permiC was issued.
� Pursuant to Mirinesota SCatutes, Section 469.177, Subd. 4,
the HRA has reviewed the area to be iaaluded in the Tax Increment
1183029.4 12
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Financing District and found no parcels for which building
pexmits have been issued during the 18 months immediately
preceding approval of the Plan by the HRA.
Subsection 23. Excess Tax Increments.
Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in
any year in which the tax increment exceeds the amount necessary
to pay the costs authorized by the Plan, including the amount
necessary to cancel any tax levy as provided in Minnesota
Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess
amount to do any of the following:
1. prepay any outstanding bonds;
2, discharge the pledge of tax increment therefor;
3. pay into an escrow account dedicated to the payment of
such bond; or
4, return the excess to the County Auditor for
redistribution to the respective taxing jurisdictions
in proportion to their local tax rates.
In addition, the HRA may, subject to the limitations set
forth herein, choose to modify the Plan in order to finance
additional public costs in the Tax Increment Financing District
or Redevelopment Project Area.
Subsection 24. Reauirements for Agreements with the
Develoger.
The HRA will review any proposal for private development to
deternline its conformance with the Redevelopment Plan and with
applicable municipal ordinances and codes. To facilitate this
effort, the following documents may be requested for review and
approval: site plan, construction, mechanical, and electrical
system drawings, landscaping plan, grading and storm drainage
plan, signage system plan, and any other drawings or narrative
deemed necessary by tihe City to demonstrate the conformance of
the development with city plans and ordinances. The HRA may also
use the Agreements to address other issues related to the
development.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no
more than 10 percent, by acreage, of the property to be acquired
in the Tax Increment Financing District as set forth in the Plan
shall at any time be owned by the ARA as a result oE acquisition
with the proceeds of bonds issued pursuant to Minnesota Statutes,
Section 469. 178, without the HRA having, prior to acquisition in
excess of 10 percent of the acreage, concluded an agreement for
the•development or redevelopment of the properCy acquired and
which provides recourse for the HRA should the development or
redevelopment not be completed.
1183029.4 13
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Subsection 25. Other Limitations on the Use of Tax
Inczement.
1. General Limitations. All revenue derived from tax
increment sha11 be used in accordance with the Plan.
The revenues shall be used to finance, or otherwise pay
the capital and administration costs of the
Redevelopment Project Area pursuant to the Minnesota
Statutes, Sections 469.12a to 469.134;
These revenues shall not be used to circumvent existinq
levy limit law. No revenues derived Erom tax increment
shall be used for the acquisition, construction,
renovation, operation or maintenance of a building to
be used primarily and regularly for conducting the
business of a municipality, county, school district, or
any other local unit of government or the state or
federal government, or for a commons area used as a
public park, or a facility used for social, recreation
or conference purposes. This provision shall not
prohibit the use of revenues derived from tax
increments for the construction or renovation of a
parking structure.
2. Poolinq Limitations. At least 80 percent of tax
increments from the Tax Increment Financing District
must be expended on activities in the Tax Increment
Financing District or to pay bonds, to the extent that
the proceeds of the bonds were used to finanCe
activities within said district or to pay, or secure
payment of, debt service on credit enhanced bonds. Not
more than 20 percent of said tax increments may be
expended, through a development fund or othercvise, on
activities outside of the Tax Increment Financing
District except to pay, or secure payment of, debt
service on credit enhanced bonds. For purposes of
applying this restriction, all administrative expenses
must he treated as if they were solely for activitiss
outside of the Tax Increment Financing District.
3. Five Year Limitation on Commitment of Tax Increments.
Tax increments derived from the Tax Increment Financing
District shall be deemed to have satisfied the 80
percent test set forth in paragraph (2) above only if
the five year rule set forth in Minnesota Statutes,
Section 469. 1763, Subd. 3, has been satisfied; and
beginning with the sixth year following certification
of the Tax InCrement Financing District, 80 percent of
said tax increments that remain after expenditures
� permitted under said five year rule must be used only
to pay previously commitment expenditures or credit
1183029.4 �-4
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enhanced bonds as more fully set forth in Minnesota
Statutes, Section 469.1763, Subd. 5.
a, ExDenditures Outside District. The Authority hereby
elects to spend an additional ten percent o£ the tax
increments on activities located outside the Tax
Increment District as permitted by Minnesota Statutes,
Section 469.1763, subd. 2(d) provided that the
expenditures meet the following requirements:
(1) they are used exclusively to assist housing
that meets the requirements for a qualified low-income
building as defined in Section 42 of the Internal
Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of
housing as defined under Section 42(c) of the Code less
the amount of any credit allowed under Section 42 of
the Code, and
(3) They are used to (i) aaquire and prepare the
site for housing, (ii) acquire, construct or
rehabil.itaCe the housing or (iii? make public
improvemenCs directly related to the housing.
Subsection 26. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la,
the county board may require the HRA to pay for all or part of
the cost of county road improvements if, the proposed development
to be assisted by tax increment will, in the judgement of the
county, substantially increase Che use of county roads requiring
construction of road improvemenCs or other road costs and if the
road improvements are not scheduled within the next five years
under a capital improvement plan or other county plan.
In the opinion of the HRA and consultants, the proposed
development outlined in this Plan will have little or no impact
upon county roads. If the county elects to use increments to
improve county roads, it must notify the HRA within thirty days
of receipt of this Plan.
Subsection 27. Assessment Agreements.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8,
the HRA may enter into an agreement in recordable form with the
developer of property within the Tax Increment Financing District
which establishes a minimum market value of the land and
completed improvements for the duration of the Tax Increment
Financing District.� The assessment agreement shall be presented
to the assessor who shall review the plans and specifications for
the improvements constructed, review the market value previously
1183029.4 15
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assigned to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in
the assessment agreement appear, in the judgment of the assessor,
to be a reasonable estimate, the assessor may certi£y the minimum
market value agreement.
Subsection 28.
Pdministration of the Tax Increment Financing District will
be handled by the Executive Director o£ the HRA.
Subsection 29. Financial Reportincr Requirements.
The BRA will comply with all reporting requirements of
Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a.
1183029.4
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EXHIBIT A
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a
EXHIBIT B
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EXHIBIT C
Assum tions Re ort
City of St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibley Park) Housing Devetopment
Scenario A- Phase One To� Project (26 years, 8% note)
Type of Tax Increment Financing District
Maximum Duration of TIF District
Certification Request Date
Decertification Date
Base Estimated Market Vaiue
Times: First SO
Excess
Originai Net Tax Capacity ( i)
Assessment/Collection Year
Base Estimated Market Value
Increase in Estimated Market Value (7)
200112002 2002/2003 2003/2004 2004/2D05
Total Estimated Market Value
Times: Fiist SO
Excess
Total Net Tax Capacity (7)
25 years from 1st increment
09/01 /00
7Z07/27 �26 Years of Increment)
2000/2001
$683,500
0.00%
0.00 %
Cp—W�9
$683,500 $683,500 5683,500 $683,500
2,000,000 75,065,744 15,065,744 15,065,744
52.683,500 575,749,244 $15,749.244 $15.749,2A4
0.00°/0 0 0 0 0
0.00% 0 0 0 0
Base inflation Factor
Local Tax Capac;ty Rate
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax flate (Onfy if Local-Effort TIF)
Bonds
Bonds Da[ed
First �nterest Date
Underwriters Discount
NA
NA
NA
0
0
$70,577
�41,527 $265,389
$265,389 $265,389
NA
148.5531 (Payabie 2000)
0.0000 % (NA for Housing)
5%,-10% (See Note #3)
0.00%
NA
Note (Pav-As-YOU-Gol
Note Dated 09/01l00
Note Rate 8.00%
LGAMACA Loss:
Wat Annual local Contribution Be Made (Yes or Noj? (2) Yes
I.S.O k625 Equalized Tax Capacity Rate NA
1.S.D �t625 Sales Ra[io � NA
City Sales Ratio & Tazable Net Tax Capacity NA NA
Present Value Date & flate 09/Ot/00 5.00%6
(i) See "Schedule ot Project Values" forcalculation of Market Values and Net Tax Capacities.
(2) Assumes annual contributlon w�Il be made upfront and will not be available tor debk service.
(3) Assumes admin. retainage of 5°6 on apartments and 10°0 on townhomes and retail space.
Prepared by: Springsted Incorporated (printed on 09/78/2000 at 9:58 AM) C-1
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Assum tions Re ort
City oi St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibtey Park) Housing Development
Scenario B- Phase One Rental-Retail Onty (26 years, 8% note)
Type o( Tax Increment Financing District
Maximum Duration of TIF District
CeRification Request Date
Decedification Date
Base Estimatzd Market Value
Times: First $0
Excess
Original Net Tax Capacity (t )
0.00%
0.00%
25 years trom ist incremeM
09/Oi/00
12l0ff27 (26YearsofVncrement)
2000/2001
S432,073
0
0
58,063
AssessmenVCOtiection Year
2001/2002 2002/2003 2003/2004 2004l2005
Base Eslimated Market Value
Increase in Estimated Market Value (i)
Total Estimated Markei Value
Times: First SO
Excess
7ota1 Net Tax Capacity (t)
5432,073 $432,073 $432,073 S432,073
7,264,295 8,412,372 8,472,372 8,412,372
$1,696,368 58,844,444
0.00 / 0 0
0.00% 0 0
53t,656 $t70,232
Base Infiation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribu[ion From 71F District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax Rate (Only if Locai-Effort TIF)
Bonds
Bonds Dated
Firstfnterest Date
Underwriters Discount
NA
NA
NA
LGA/HACA Loss:
Will Annual Locai Contribution Be Made (Yes or No)? (2)
I.S.Q �625 Equalized Tax Capacity Rate
I.S.D n625 Sales Ratio .
City Sa1es Ratio & Taxable Net Tax Capacity
Present Vaiue Date & Rat2
58.844,444 S8,B44,444
0 0
$170,232
$170,232
NA
148.553 % (Payable 2000)
0.0000 % (NA tor Housing)
5%-10°/, (See Note �3)
0.00%,
NA
Note (Pav-AS-You-Go1
Note Dated
Noie Rate
Yes
NA
NA
NA
04/O7/00
09/Oil00
B.00 %
NA
5.00°/
(1) See "Schedule of Pro�ect Values" for calculatwn of Market Vaiues and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be availabie for debt servicz.
(3J Assumes admin. retainage of 5% on apartments a�d 10 % on touvnhomes and retaif sQace.
Prepared by: Springsted Incorporaled fP��nted on 09/78/2000 at 9:59 AM) C-3 Tif091800b.xis
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Assum tions Re ort
00 —Iz�e R
City of St. Paui, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
IJorth Quadrant (Sibiey Park) Housing Devefopment
Scenario C- Phase One Townhomes Only (26 years, S% note)
Type of Tax Increment Financing District
Mazimum Duration oi TIF District
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: Frst SO
Excess
Original Net Tax Capaciry (7)
0.00%
0.00 %
0
0
$2,514
AssessmenUCollection Year
Base Estimated Market Value
Increase in Estimated Market Value (1)
7otai Estimated Market Value
Times: Rrst
Excess
Tofal Net Tax Capacity (1)
25 years from ist increment
09lOt/00
iZ01/27 (26 Years of Increment)
2400l2061
�5251,427
2001/2002 2002/2003 2003/2004 2004/2005
$251,427 $251,427 $251,427 $251.427
735,705 6,653,3�3 6,653,373 6,653,373
�987,132 $6,904,800 $6,904,800 $6,904,800
SO 0.00 (
0.00%
Base Inflation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribution From TiF District
Administretive Retainage Percent (maximum = 10°/,)
Pooling Percent
CityTax Rate jOniy'rf Locai-Effort TIF)
Bonds
Bonds Dated
First Interest Date
Undervvriters Discount
NA
NA
NA
IGA/HACA Loss:
Will Annual Local Contribution Be Made (Yes or No)? (2)
I.S.D #625 Equalized 7ax Capacity Rate
I.S.D k625 Sales Ratio �
City Sa�es Ratio & Taxable Net Tax Capacity
Present Vatue Date 8 Rate
0 0
0 0
$9.871 $95,157
0 0
0 0
595,157 595,157
NA
148.553%, (Payable 2000)
0.0000°/, (NA tor Housing)
5°/,•10% (See Note #3)
0.00%
NA
Note (Pav-As-You-Go)
Note Dated
Nofe Rate
Yes
NA
NA
NA
09/07/00
09/07/00
8.00 %
NA
5.00%
(1) See "Schedule oF Project Values" forcalculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upiront and wlll not be availabie for debt service.
(3j Assumes admin. retainage of 5% on aparlments and 10 % on townhomes and retail space.
Prepared by: Springsted Incorporated (printed on 09l78/2000 at 10:00 AM) C-5 Tif097800c.xls
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Council File # Op � �DO�
Resolution #
Green sheet # �e��9�t
� RESOLUTION
OF SAINT PAUL, M
S�
Presented By
Referred To
Committee: Date
1 RESOLUTION APPROVING THE
2 AMENDMENT OF THE TAX INCREMENT FINANCING PLAN
3 FOR TAX INCREMENT FINANCING DISTRICT
4 NO. 1 (NORTH QUADRANT)
7 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
9 Section 1. Recitals
l0
11 1.01 On June 23, 1999, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
12(the "Authority") established the North Quadrant Redevelopment Project Area (the "Redevelopment Project
13Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan").
14
15 1 A2 On August 9, 2000 City Council approved the creation, within the Redevelopment Project Area,
16of TaY Increment Financing District No. 1(North Quadrant) (the "Tas Increment District") and the adoption
17of a Tax Increment Financing Plan therefor (the °Tax Increment Plan"), all pursuant to and in accordance with
1 sMinnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act") and Laws of Minnesota
192000, Chapter 490, Article 11, Section 40 (the "Special Law").
20
21 1.03 The Authority has determined that it is necessary to amend the T� Increment Plan to, among
2 2other things, authorize the issuance of bonded indebtedness of the Authority to finance a portion of the costs
2 3of the development as described in the amendment to the T� Increment Plan (the "Amended Plan"). The
24Autharily has performed all actions required by law to be performed prior to the amendment of the Tax Incre-
2 5ment Plan, including, but not limited to, notification of Ramsey County and Independent School District
2 6Number 625, which have t�ing jurisdiction over the property included in the Tax Increment District, and has
2 7requested that the City approve the Amended Plan following the holding of a public hearing upon published
2 sand mailed notice as required by law.
29
3 0 Section 2. Findines for the Amendment of the Tax Increment Financing Plan.
31
3 2 2.01 The City Council hereby finds that the amendment of the Tax Increment Plan for T� Increment
3 3Financing District No. 1(North Quadrant) is intended and, in the judgment of the City Council, its effect will
3 4be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the construction in the
3 5City of affordable and mixed income housing, will increase employment and otherwise promote certain
3 6public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment
3 7Financing Plan.
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1 2.02 The City Council hereby reaff rms its previous findings that Tas Increment Financing District
2No. 1(North Quadrant) qualifies as an"housing districY' within the meaning of the Ta�c Increment Act and
3the Special Law for the foilowing reasons:
5 The properry to be included in the Tax Increment Distdct is located in the Northeast
6 quadrant of the City, i.e. within the 15 acre site bounded by Interstate 94 on the north and
7 east, Jackson Street on the west and Seventh Street on the south, together with the west
8 side of Jackson Street to midblock between Interstate 94 and South Street.
9
1 o Twenty percent of the housing units the Tas Increment District wiil be occupied by
11 individuals whose family income is equal to or less than 50 percent of area median gross
12 income and an additiona160 percent of the units will be occupied by individuals whose
13 family income is equal to or less than 115 percent of azea median gross income. Twenty
14 percent of the units in the TaY Increment District will not be subject to any income
15 limitations.
16
17 Family income means the median gross income for the City as detennined under section
18 42 of the Internal Revenue Code of 1986, as amended. The income requirements will be
19 satisfied if the sum of qualified owner-occupied units and qualified residential rental units
2 0 equals the required total number of qualified units. Owner-occupied units will initially be
21 purchased and occupied by individuals whose family income safisfies the income
2 2 requirements. For residential rental property, the income requirements apply for the
2 3 duration of the Tax Increment District.
24
2 5 The fair mazket value of the improvements which are constructed in the Tax Increment
2 6 District for commercial uses or for uses other than owner-occupied and rental mixed-
2 7 income housing wili not consist of more than 20 percent of the total fair mazket value of
2 8 the planned improvements in the development plan or agreement. The fair mazket value
2 9 of the improvements will be determined using the cost of construction, capitalized
3 0 income, or other appropriate method of estimaring market value.
31
32 2.03 The City Council hereby reaffirms the following findings:
33
3 4 (a) The City Council further finds that the proposed development, in the opinion of
3 5 the City Councii, would not occur solely through private investment within the reasonably
3 6 foreseeable future and, therefore, the use of t� increment financing is deemed necessary. The
3 7 specific basis for such finding being:
38
3 9 The parcels on which the development will occur would not be developed in the
4 0 reasonably foreseeable future because they aze currently used for surface parking,
41 which use generates significant income to the current owner of the property
4 2 considering the owner's minimal investment in the property.
43
44 (b) The City Council fiu•ther finds that the Ta�c Increment Financing Plan, as amended,
4 5 conforms to the general plan for the development or redevelopment of the City as a whole. The
4 6 specific basis for such finding being:
47
4 8 The T� Increment Financing Plan will generally compliment and serve to implement
4 9 policies adopted in the City's comprehensive plan. The development contemplated is in
5 0 accordance with the existing zoning for the property.
izo�aie.i
1 (c) The City Council fiuther finds that the Tax Increment Financing Plan, as amended, pp� (pO�
2 will afford maYimum opportunity consistent with the sound needs of the City as a whole for the
3 development of the Tas Increment District by private enterprise. The specific basis for such
4 fmding being:
6 The proposed development to occur within the Tax Increment District is housing. The
7 development wili increase needed affordabie and mixed income housing in the City and
8 will increase the mazket valuation of the City.
l0 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
11 the City Council hereby finds that the increased mazket value of the property to be developed within the
12 T� Increment District that could reasonably be expected to occur without the use of tas increment
13 financing is $-0- , which is less than the market value estimated to result from the proposed
14 development (i.e., $15,065,744) after subtracting the present value of the projected tas increments for
15 the maxiinum duration of the Tas Increment District (i.e., $3,481,295). In making these fmdings, the
16 City Council has noted that the properiy has been undeveloped for many yeazs and would likely remain
17 so if taY increment financing is not available. Thus, the use of tax increment fmancing will be a
18 positive net gain to the City, the School District, and the County, and the ta�c increment assistance does
19 not exceed the benefit which will be derived therefrom.
20
21 2.04 The provisions of this Section 2 aze hereby incorporated by reference into and made a part of
22the Amended Plan.
23
24 Section 3. Apnroval of Amendment of the T� Increment Financine Plan.
25
2 6 3.01 The amendment of the Tas Increment Plan for T� Increment Financing District No. 1(North
2 7Quadrant) is hereby approved and the Amended Plan therefor is hereby adopted.
28
2 9 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
3 Ocounsei are authorized and directed to proceed with the implementation of the T� Increment District and the
31Amended Plan and for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of
3 2the Authority for its consideration all further plans, resolutions, documents and contracts necessary for this
3 3purpose.
34
3 5
Requested by Department of:
Planninq & Economic Development
�� ���
By:
Adoption
Form Approved by Cit� A torney
Certifi by Council Secretary BY�
By: l�` . � ��9 .. � _ -
�� A � � Approved by Mayor for Submission to Council
Approved by Mayor: Date 4
gy: ,y��c�qq� By:
-�vii
i
1207814.1
Adopted by Council: Date � cX . S�, 2-u aa
L
DEPARTMENT/OFFICE/COUIYCIL: DATE INI'CIATED GREEN SHEET No.: 101694 ��' �p
PED 10/13/00
CONTACP PERSON & PHONE: AiE IIvi1'tnI1nATE
AI Carlson 6-6616 � 2 n�s�zT�r Dm _���� s cmr covxcu.
MUSC BE ON COUNCIT, AGENDA BY (DATE) �IGN
3 CITYATIORNEY CITYCLERK
October 25 � LOOO gUMBER FINANCIAL SERV DIR _ _ FAIANCIAL SERV/ACCI"G
ROI7'1'ING 4 MAYOR (OR ASST.)� i Bob Schreier
ORDER
TOTAL # OF SIGNATURE PAGES _1_(CLIP ALL LOCATIONS FOR STGNATORE)
ncrcox �2uES�rEn: Public Aearing to adopt resolution approving the amendment of the T� Increment Financing
Plan for Tax Increment Financing District No. 1(north qvadraut)
RECOMIdENDATIONS: Approve (A) or Reject (R) PERSONAL SE$VICE CONTRACCS MUST ANSWER'fFIE FOI.I.OWING
QUESTIONS:
PLANNING COMIvIISSION L Has this person/fum ever worked under a wntract for this department?
CIB COMMITTEE Yes No
CML SERVICE COMivffSSION 2. Has this person/fitm ever been a ciry empiayee?
Yes No
3. Does this person/fiim possess a skill not nomially possessed by any curtent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INII7ATING PROBLEM, ISSUE, OPPORTUYIT'Y (Who, What, When, Where, Why):
The purpose of the resolution is to amend the Tax Increment Financing District No. 1(north quadrant) to 1) allow
the issuance of a tax exempt tas increment bond to finance in part the construction of the Essex on the Pazk
Townhomes and 2) to modify the taY increment budget to reflect requirements under staxe law for monitoring
purposes by State Auditar. The proposed amendments do not change or modify the total projecY costs for the Essex
on the Park as originally proposed to the council.
ADVANI'AGES IF APPROVF.D:
DTSADVAN'['AGES IF APPROVED:
DLSADV.4NTAGES IF NOT APPROVED;
TOTAL AMOilN1' OF'1RANSACTION: $ COST/REVENUE BUDGETED:
FUNDING SOURCE: ACl'iVITY NOMBER:
FINANCIAL IlVFORMATION: (EXPLAIN)
\�Ped�y5l�SAared�KAPLANUgmsM1Cfrm
pa_�oog,
Interdepartmental Memorandum
CI'IS' OF SAINT PAUL
TO: Council President Bostrom
Councilmember Benanav
Councilmember Blakey
Councilmember Coleman
Councilmember Harris
Councilmember Lantry
Councilmember Reiter
FROM: Brian Sweeney
Allen Carlson �(j
DATE: October 13, 2000
RE: PUBLIC HEARING: RESOLUTION APPROVING THE AMENDMENT
OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO.1(NORTH QUADRANT)
Purpose
The purpose of this public hearing is to receive public comment and request the City Council to
approve a resolution amending the Tas Increment Financing Plan (the "Plan") for the Tas
Increment Financing District No. 1(North Quadrant) (the "District") which was originally
adopted by the Housing and Redevelopment Authority of the City of Saint Paul on August 9,
2000.
Background
The District is bounded by '7t 8"' , Wacouta and Sibley Streets. The District was adopted to
allow tas increments to be generated to assist in the financing of a proposed 114 multifamily
rental building with 10,000 square feet of commercial space (the "Sibley Pazk Apartments") and
a 3 8 unit for sale town home development (the "Essex on the Pazk"). Twenty-two percent of the
rental units will be affordable to households at ar below 30% of the azea median income and
18% of the rental units will be affordable to households at or below 50% of the area median
income.
Pursuant to State statutes any time a change in the plan is proposed a public hearing must be
conducted. Staff is proposing the following amendments to the Plan:
pp_�ooq
Amend Subsection 9 of the Plan which includes the proposed budget for the Plan. The
budget is being amended to add for State Auditing purposes all City/FIRA funds that will
be used to assist in the development of the proposed housing. The original budget only
included tax increment funds. This proposed change does not change the fivaucing or
originally approved budgeted amounts for the project. The added funds to the budget for
State Auditing purposes include I3RA Enterprise funds, federal HOME funds and
Metropolitan Council that were awazded to the City for the project.
Amend Subsection 10 to a11ow up to $1.5 million of bonded indebtedness to finance
public costs related to the construction of the Essex on the Pazk development. The
original Plan only allowed expendihues authorized by the Plan to be paid on a pay-as-
you-go basis. Because of the long duration of the District (25 yeazs) it became
unpossible to fmd any banks willing to purchase the pay-as-you-go note for the
ownership or Essex on the Park project. Therefore, the only viable and cost effective
fmancing tool to fund the Essex on the Pazk using tax increments is issuance of a IIRA
tas increment tax exempt revenue bond. Currently, it is estimated that the bond issue
would be about $13 million dollazs. The HRA authorizes issuance of the revenue bond.
Recommendation
Staff recommends approval of the attached resolution amending the Tax Increment Financing
Plan for the Tax Increment Financing District No. 1(North Quadrant).
Statement of the Council President
Being duly authorized by the City Council to conduct this Public Hearing, the heazing is now
open. This Public Hearing is called for the proposed purpose to consider the following:
Amendment of the Tax Increment Financing Plan for the Tax Increment Financing
District No.l (North Quadrant).
Notice of time, place, and purpose of this hearing was published in the Saint Paul Legal Leger on
October 6, 2000. The affidavit of the publication of the Notice of Public Hearing will be made a
part ofthese proceedings.
Is there anyone who wishes to be heard on this item? If not, the Chair will declare this Public
Hearing adjourned.
Attachments
Resolution approving amendment to the T� Increment Financing Plan for the Tax
Increment Financing Dishict No. 1(North Quadrant)
Amended Tax Increment Financing Plan for the Tax Increment Financing District No. 1
(North Quadrant)
K:\S1�ared�CARLSOAP�sherman\CC'17F AMIND 12P'I 102500.wpd
�
i Y �,
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRANT)
(a housing district)
wiChin the
NORTH QUADRANT REDEVELOPMENT PROJECT AREA
HOUSII3G AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: August 9, 2000
Amended: October 25, 2000
This document was drafted by: BRIGGS AND MORGAN, (MIVID)
Professional Association
2200 First National Bank Bldg.
St. Paul, MN 55101
(651) 223-6625
,
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTFi QUADRANT)
Paae
Subsection 1.
Subsection 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6
Subsection 7
Subsection 8
Subsection
Subsection
Subsection
Subsection
9.
10.
11.
12.
Subsection 13
Subsection 14
Subsection 15
Subsection 16
Subsection 17
Subsection 18
Subsection
Subsection
Subsection
Subsection
Subsection
Subsection
19.
20.
21.
22.
23.
24.
Subsection 25
Subsection 26
Subsection 27
Subsection 28
Subsection 29
Forward . . . . . . . . . . . . . . . . .
Statutory Authority . . . . . . . . . . .
Statement of Objectives . . . . . . . . .
Redevelopment Plan Overview . . . . . . .
Parcels to be Included in Tax Increment
Financing District No. 1 . . . . . . . .
Parcel in Acquisition . . . . . . . . . .
Development Activity in Tax Increment
Financing District No. 1 for which
Contracts have been Signed . . . . . . .
Other Specific Development Expected to
Occur within Redevelopment Area . . . . .
Estimated Cost of Project . . . . . . . .
Estimated Amount of Bonded Indebtedness .
Sources of Revenue . . . . . . . . . . .
Estimated Captured Tax Capacity and
Estimate of Tax Increment . . . . . . . .
Type of Tax Increment Financing District
Duration of Tax Increment Financing
District . . . . . . . . . . . . . . . .
Estimated Impact on Other Taxing
Jurisdictions . . . . . . . . . . . . . .
State Tax Increment Financing Aid ....
Modification of Tax Increment Financing
District and/or Tax Increment Financing
Plan . . . . . . . . . . . . . . .
Modifications to Tax Increment Financing
District . . . . . . . . . . . . . .
Administrative Expenses . . . . . . . . .
Limitation of Increment . . . . . . . . .
Use of Tax Increment . . . . . . . . . .
Notification of Prior Planned
Improvements . . . . . . . . . . . . . .
Excess Tax Increments . . . . . . . . . .
Requirements for Agreements with the
Developer . . . . . . . . . . . . . .
Other Limitations on the Use of Tax
Increment . . . . . . . . . . . . . . . .
County Road Costs . . . . . . . . . . . .
Assessment Agreements . . . . . . . . . .
•Administration of the Tax Increment
Financing District . . . . . . . . . .
Financial Reporting Requirements . . . .
. 1
. 1
. 1
. 2
. 2
. 3
. 3
. 3
. 3
. 4
. 4
. 5
. 5
. 6
. 7
. 8
. 9
. 9
10
10
12
12
13
13
14
15
15
16
16
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EXHSBIT A- Map of Tax Increment District No. 1
EXHIBIT B- Map of North Quadrant Redevelopment Project Area
EXHIBIT C- Projected Tax Increments
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TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FII3ANCING DISTRICT I30. 1(I30RTH QUADRANT}
Subsection 1. Forward. The Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "HRA"), and
its staff and consultants have prepared the following information
for the establishment of Tax InCrement Financing District No. 1
(North Quadrant), a housing district (the "Tax Increment
DistriCt"). The Tax Increment District is located within the
North Quadrant Redevelopment Project Area (the "Redevelopment
Project Area") established by the HRA pursuant to the North
Quadrant Redevelopment Plan adopted by the HRA on June 23, 1999
(the "Redevelopment Plan"). The Redevelopment Plan was approved
by the Planning Commission on June 23, 1999.
Subsection 2. Statutory Authoritv. There exist areas
within the City of Saint Paul (the "City") where public
involvement is necessary to cause development to occur. To this
end, the HRA has certain statutory powers pursuant to special
legislation (Laws of Minnesota, Chapter 490, Article li, Section
40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Tax Increment Financing Act" or "TTF Act"),
to assist in financing public costs related to a project.
Subsection 3. Statement of Obictives. The Tax Increment
Financing District consists of 2 parcels of land and adjacent and
internal rights-of-way. A map showing the boundaries of the Tax
Increment District is attached as Exhibit A. The Tax Increment
Financing Di5trict is being created to facilitate a 38 unit owner
occupied townhome development (the "Owner Occupied Development")
and a 114 unit rental apartment facility (the "Rental
Development"). The tax increment financing plan is expected to
achieve many of the objectives outlined in the Redevelopment Plan
for the North Quadrant Redevelopment Project Area. The following
are some of the objectives being facilitated by this Tax
Increment Financing Plan.
A. Provide Affordable Housing for Saint Pau1 Residents.
The available housing in the downtown area of the city will
expand by more than 152 units with the completion of the housing
development Contemplated by this Tax Increment Financing Plan.
B. To Redevelop Underused Pro�ertv.
The Tax Increment District is a site that has been
underutilized for many years. The majority of the area comprising
the site has been used for surface parking. New commercial,
cultural and recreational investments are jeopardized by lack of
development in the downtown area. 25 of the units in the rental
portion of the development will be affordable to households at or
1183029.4
t'�o -100�
below 300 of Che area median income and 23 units will be
affordable to households at or below 50% of the area median
income. 23 of the owner-occupied units will be affordable to
households between 80o and 115% of area median income.
In order to protect past investments and encourage new
development in the downtown area new housing development needs to
be created to encourage additional private investment.
C. Expand the Tax Base of the Citv of Saint Paul.
It is expected that the taxable market value of parcels in
the Tax Increment District will increase by approximately
$21,280,000.
The activities contemplated in the Redevelopment Plan and
this Tax Increment Financing Plan do not preclude the undertaking
oE other qualified development or redevelopment activities.
These activities are anticipated to occur over the life of the
Tax Increment District and the Redevelopment Project.
Subsection 4. RedeveloAment Plan Overview.
1. Property to be Acquired - Selected property located
within Tax Increment Financing District or
Redevelopment Project Area may be acquired by the HRA.
2, Relocation - if necessary, complete relocation services
are available pursuant to Minnesota Statutes, Chapter
117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to a
development and completion of the necessary legal
requirements, the HRA may sell or assist a developer
with the cost of selected properties within Tax
Increment Financing District or Redevelopment Project
Area, or may lease land or facilities to a developer.
4. The xRA may perform or provide for some or all
necessary acquisition, construction, relocation,
demolition, and required utilities and street work
within Tax Increment Financing District No. 1.
Subsection 5. Parcels to be Included in Tax Increment
Financina Di5trict No. 1. The following parcels located in the
City of Saint Paul, Ramsey County, Minnesota:
PIN NO.
312922440028
312922440029
ADpRESS
221 7`" Street East
440 Sibley Street
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FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1 CAN BE
OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA.
Subsection 6. Parcel in Acquisition. The HRA may finance
a11 or a part of the costs of acquisition of the parcels
identified in Section 5 of this Tax Increment Financing Plan.
The following are conditions under which properties not
designated to be acquired may be acquired at a future date:
(1) The HRA may acquire property by gift, dedication,
condemnation or direct purchase from willing sellers in
order to achieve the objectives of the tax increment
financing plan; and
(2) Such acquisitions will be undertaken only when there is
assurance of funding to finance the acquisition and
related costs.
Subsection 7.
The following contracts have been or wi11 be entered into by the
HRA and the persons named below:
No development agreements have been entereci into at
this time. However, the HRA anticipates entering into
a development agreement with an entity to be formed by
Sherman Associates, Inc. and The Lander Group (the
"Developer") with respect to the development of a 38
unit owner occupied townhome development and a 114 unit
rental apartment facility.
Subsection 8. Other Specific Development Expectied to Occur
within Redevelopment Area.
Although no specific additional developmenCs have been
identified at this time, the HRA expects that the
acquisition and construction of the above housing
development will encourage additional development in
the Redevelopment Project Area.
Subsection 9. Estimated Cost of Proiect. The HRA has
determined that it will be necessary to provide assistance for
certain public costs of certain housing activities. To
facilitate the development of the Tax Increment Financing
District, this Tax Increment Financing Plan authorizes the use of
tax increment financing to pay for the cost of certain eligible
expenses. The estimate of public costs and uses of funds
associated with Tax�Increment Financing District is outlined in
the following table:
1183029.4 3
Da-a°g
(Owner Occupied Development)
Tax Metropolitan
Increments Council Grant
Uses
Underground Parking
Site Development and
Construction Costs
Interest
Capitalized Interest
Administrative
$ 950,000
300,000
1,974,000
90,000
345.000
TOTAL $3,659,000
(Rental Development)
Uses
Site
Development and
Construction
Costs
Parking
Interest
Administrative
TOTALS
HRA Federal
Tax Enterprise Home
Increments Fund Loan Loan
$ 840,000
1,600,000
3,300,000
340.400
$6,080,000
$250,000 $750,000
$450,000
$450,000
$250,000 $750,000
Metro�oliCan
Council Loan
$500,000
: �� ���
Estimated costs associated with Tax Increment Financing District
are subject to change and may be reallocated between line items
by the HRA. The cost of all activities to be financed by the tax
increment will not exceed, without formal modification, the
budget for the tax increments set forth above.
Subsection 10. Estimated Amount of Bonded Indebtedness. The
HRA may issue its tax increment revenue bonds in an amount not to
exceed $1,500,000 to finance public costs of the Owner Occupied
Development. The expenditures authorized by this Tax Increment
Financing Plan for the Rental Development will be paid for on a
pay-as-you-go basis.
Subsection 11. Sources of Revenue. The costs outlined in
Section 9 above will be financed through the annual collection of
tax inczements, and the loans or grants given by or through the
1183029.4 4
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.
City or HRA as set forth above. The total cost of the Rental
Development are estimated to be approximately $17,000,000. The
total cost of the 38 unit Owner Occupied Development is estimated
to be approximately $9,500,000.
Additional sources o£ funds for the Rental Development wi11
be assistance directly from the Minnesota Housing Financing
Agency in the amount o£ $700,000 and from the Family Housing Fund
in the amount of $150,000. The Developer will receive a$450,000
grant directly from the Minnesata Housing Financing Agency for
the Owner Occupied Development. The Developer will contribute
equity or obtain private financing for the remaining costs of the
Developments.
Subsection 12
of Tax Increment.
Financing District
1999.
Estimated Caotured Tax Capacity and Estimate
The most recent tax capacity of Tax Increment
is estimated to be $10,577 as of January 2,
The estimated captured tax capacity of Tax Increment
Financing District at completion is estimated to be $254,812.
The HRA elects to retain all of the captured tax capacity to
finance the costs of Tax Increment Financing District No. l. The
HRA elects the method of tax increment computation set forth in
Minnesota Statutes, Section 469.177, subd. 3(a).
SubseCtion 13. �m� of Tax Increment Financina District.
Tax Increment Financing District No. 1 is a housing district
established, pursuant to Minnesota Statutes, Section 469.174,
Subd. 10, and the Special Law, and will satisfy the requirements
described below.
The Tax Increment Einancing District consists of a project,
or a portion of a project, intended for occupancy, in part, by
persons of low and moderate income as defined in Minnesota
Statutes, Chapter 462A, Title II, of the National Aousing Act of
1934; the National Housing Act of 1959; the United States Housing
Act of 1937, as amended; Title V of the Housing Act of 1949, as
amended; any other similar present or future federal, state, or
municipal legislation, or the regulations promulgated under any
of those acts. Twenty percent of the units in the development in
the Tax Increment District must be occupied by individuals whose
family income is equal to or less than 50 percent of area median
gross income and an additional 60 percent of the units in the
development in the Tax Increment District must be occupied by
individuals whose family income is equal to or less than 115
percent of area median gross income. Twenty percent of the units
in the development in the Tax Increment District are not subject
to any income limitations. Family income means the median gross
income for the area as determined under section 42 of the
Internal Revenue Code of 1986, as amended. The income
1183029.4 5
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requirements are deemed to be satisfied if the sum of qualified
owner-occupied units and qualified residential rental units
equals the required total number of qualified units. Owner-
occupied units must be initially purchased and occupied by
individuals whose family income satisfies the income requirements
of this subdivision. For residential rental property, the income
requirements of this subdivision apply for the duration of the
Tax Increment District.
The development in the Tax IncremenC Distric� does not
qualify if the fair market value of the improvements which are
constructed for cominercial uses or for uses other than owner-
occupied and rental mixed-income housing consists of more than 20
percent of the total fair market value of the planned
improvements in the development plan or agreement. The fair
market value of the improvements may be determined using the cost
of construction, capitalized income, or other appropriate method
of estimating market value.
In establishing Tax Increment Financing District, the
determination has been made that the anticipated development
would not be reasonably expected to occur solely through private
investment within the reasonably foreseeable future and that
therefore the use of tax increment financing is deemed necessary.
In making this determination the HRA has relied on its own
knowledge of the development history of the area and on
representations made by the Developer.
The HRA and the City have determined that the proposed
development of the Tax Increment District would not reasonably be
expected to occur solely through private investment within the
reasonably Eoreseeable future and that the increased market value
pf the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the
increase in the market value estimated to result from the
proposed development after subtracting the present value of the
projected tax increments for the maximum duration of Che district
permitted by the plan.
Subsection 14. Duration of `rax incremenc r�z�a�.����u Ll.71�11�.t-•
The duration of Tax Increment Financing District will be 25 years
from the receipt of the first tax increment. The date of receipt
of the first tax increment is expected to be July of 2002.
Attached as Exhibit C is the projected receipt of tax increments
from Tax Increment Financing District.
Subsection 15. Estimated Impact on Other '1'axincr �urisuic-
tions. The estimated impact of Tax Increment Financing District
on the other taxing jurisdictions assumes construction would have
' occurred without the creation of Tax Increment Financing
District. If the construction is a result of tax increment
financing, the impact is $0 to other entities. Notwithstanding
1183029.4 6
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.
the fact that the fiscal impact of the other taxing jurisdictions
is $0, due to the fact that the construction would not have
occurred without the assistance of the HRA, the following
estimated impact of Tax Increment Financing District would be as
follows if the "but for" test was not met:
1183029.4
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Subsection 16. State Tax Increment Einancina Aid. Pursuant
to Minnesota Statutes, Section 273.1599, for tax increment
financing districts for which certification was requested a£ter
April 30, 1990, a municipality incurs a reduction in state tax
increment £inancing aid (RISTIFA) applied to the municipality's
Local Government Aids (LGA) first and, I3omestead and Agricultural
Aid (HACA) second, in an amount equal to a fornlula based upon the
equalized qualifying captured tax capacity (QCTC) of Tax
Increment Financing District.
Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6,
the HRA may choose an option to the LGA-HACA penalty, Tax
Increment Financing District is exempt from the LGA-HACA
reduction if the HRA elects to make a qualifying local
contribution at the time of approving the Plan. To qualify for
the exemption in each year, the HRA must make a qualifying local
contribution to the project of a certain percentage. The local
contribution for a housing district is 5 percenC. The maximum
local contribution for all districts in the City in any year is
limited to two percent of the City's net tax capacity, after
which point the HRA must make an additional contribution equal to
the lesser of (a) 0.25 percent of the City's net tax capacity or
(b) 3 percent of tax increment revenues for that year.
The amount of the local contribution must be made out of
unrestricted money of the HRA or the City, such as the general
fund, a property tax levy, or a federal or state grand-in-aid
which may be spent for general government purposes. The local
contribution may not be made, directly or indirectly, with tax
increments or developer payments. The local contribution must be
used to pay project costs and cannot be used for general
government purposes.
The HRA elects to make the annual local coatribution to the
project to exempt itself from the LGA-HACA penalty. The HRA will
pay for costs of the project described in this Plan, in an amount
equal to 5 percent of annual tax increment for Tax Increment
Financing District, subject to the limitations described above,
in any year in which such amount exceeds 2 percent of the City's
net tax capacity. Such contribution may be in form of either
lump sum or annual payments (in addition to tax increment
payments) towards costs identified in this Plan or other costs
related to that development. The contribution may also be made
in the form of public improvement financed by the City or other
unit of government with unrestricted funds.
,
iiaaozs.n 8
• � � a •
Subsection 17. Modification of Tax Increment Financina
District and/or Tax Sncrement Financina Plan. As of August 9,
2000, no modifications to Tax Increment Financing District No.
or the Tax InCrement Financing Plan therefore have been made.
Subsection 18. Modifications to Tax Increment Financina
District
In accordance with Minnesota Statutes, Section 469. 175,
Subd. 4, any:
1. reduction or enlargement of the geographic area of the
Tax Increment Financing District;
2. increase in amount of bonded indebtedness to be
incurred, including a determination to capiCalize
interest on debt if that detennination was not a part
of the original plan, or to increase or decrease the
amount of interest on the debt to be capitalized;
3, increase in the portion of the captured net tax
capacity to be retained by the HRA;
4. increase in total estimated tax increment expenditures;
or
5. designation of additional property to be acquired by
the HRA,
shall be approved upon the notice and after the discussion,
public hearing and findings required for approval of Che original
plan.
The geographic area of District may be reduced, but shall not be
enlarged after five years following the date of certification of
the original net tax capacity by the county auditor. The
requirements of this paragraph do not apply if (1) the only
modification is elimination of parcel(s) from Tax Increment
Financing District and (2)(A) the current net tax capacity of the
paTCel(s) eliminated from the Tax Increment Financing District
equals or exceeds the net tax capacity of those parcel(s) in the
Tax Increment Financing District's original neC tax capacity or
(B) the HRA agrees that, notwithstanding Minnesota Statutes,
Section 469. 177, Subd. 1, the original net tax capacity will. be
reduced by no more than the current net tax capacity of the
parcel(s) eliminated from the Tax Increment Financing District.
The ARA must notify the County Auditor of any modification that
reduces oz enlarges the geographic area of the Tax Increment
Financing District or the Redevelopment Project Area.
Modifications to Tax Increment Financing District in the form of
a budget modification or an expansion of the boundaries will be
recorded in the Tax Increment Financing Plan.
1183029.4 9
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Subsection 19. Administrative Ex�enses.
In accordance with Minnesota Statutes, Section 469.174,
Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3,
administrative expenses means all expenditures of the HRA, other
than:
1. amounts paid for the purchase of land or amounts paid
to contractors or others providing materials and
services, including architectural and engineering
services, directly connected with the physical
development of the real property in the district;
2, relocation benefits paid to or services provided for
persons residing or businesses located in the district;
or
3. amounts used to pay interest on, fund a reserve £or, ox
sell at a discount bonds issued pursuant to Minnesota
Statutes, Section 469.178.
Administrative expenses also include amounts paid for
services provided by bond counsel, fiscal consultants, and
planninq or economic development consultants. Tax increment may
be used to pay any authorized and documented administrative
expenses for the Tax Increment Financing District up to but not
to exceed 10 pezcent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h,
tax increments may be used to pay for the county's actual
administrative expenses incurred in connection with the Tax
Increment Financing District. The county may require payment of
those expenses by February 15 of the year following the year the
expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11,
the county treasurer shall deduct an amount equal to 0.1 percent
of any increment distributed to the HRA and the county treasurer
shall pay the amount deducted to the state treasurer for deposit
in the state general fund to be appropriated to the State Auditor
for the cost of financial reporting of tax increment financing
information and the cost of examining and auditing authorities'
use of tax increment financing.
Subsection 20. Limitation of Increment.
Pursuant to Minnesota Statutes, Section 469. 176, Subd.
1(a), no tax increment shall be paid to the HRA for the Tax
IncremenC FinanCing District after three (3) years from the date
' of certification of the Original Net Tax Capacity value o£ the
taxable property in the Tax Increment Financing District by the
County Auditor unless within the three (3) year period:
1183029.4 �-�
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(a) bonds have been issued pursuant to Minnesota Statutes,
Section 469. 178, or in aid of a project pursuant to
any other law, except revenue bonds issued pursuant to
Minnesota Statutes, Sections 469.152 to 469.165, or
(b) the HRA has acquired property within the Tax Increment
Financing Di5trict, or
(c) the HRA has constructed or caused to be constructed
public improvements within the Tax Increment Financing
District.
The tax increment pledged to the paymenC of bonds and
interest triereon may be discharged and may be terntinated if
sufficient funds have been irrevocably deposited in the debt
service fund or other escrow account held in trust for all
outstanding bonds to provide for the payment of the bonds at
maturity or redemption date.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6:
if after four years from the date of certification of
the original net tax capacity of the tax increment
financing district pursuant to Minnesota Statutes,
Section 469.177, no demolition, rehabilitation or
renovation of property or other site preparation,
including qualified improvement of a street adjacent to
a parcel but not instailation of utility service
including sewer or water systems, has been commenced on
a parcel located within a tax increment financing
district by the authority or by the owner of the parcel
in accordance with the tax increment financing plan, no
additional tax increment may be taken from that parcel
and the original net tax capacity of that parcel shall
be excluded from the original net tax capacity of the
tax increment financing district. If the authority or
the owner of the parcel subsequently commences
demolition, rehabilitation or renovation or other site
preparation on that parcel including qualified
improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the
activity has commenced and the county auditor shall
certify the net tax capacity thereof as most recently
certified by the commissioner of revenue and add it to
the original net tax capacity of the tax increment
financing district. The county auditor must enforce
the provisions of this subdivision. For purposes of
this subdivision, qualified improvements oE a street
are limited to '(1) construction or opening of a new
street, (2) relocation of a street, and (3) substantial
reconstruction or rebuilding of an existing street.
1183029.4 1�-
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Subsection 21. Use of Tax Increment.
The HRA hereby determines that it will use 100 percent of
the captured net tax capacity of taxable property located in the
Tax Tncrement Financing District for the following purposes:
1. to pay the principal of and interest on bonds used to
finance a project;
2. to finance, or otherwise pay the capital and
administration costs of the 22edevelopment Project Area
pursuant to the Minnesota Statutes, Sections 469.124 to
469.134;
3. to pay for project costs as identified in the budget;
4. to finance, or otherwise pay for other purposes as
provided in Minnesota Statutes, Section 469.1 76, Subd.
4;
5. to pay principal and interest on any loans, advances or
other payments made to the HRA or for the benefit of
Redevelopment Project Area by the developer;
6. to finance or otherwise pay premiums and other costs
for insurance, credit enhancement, or other security
guaranteeing the payment when due of principal and
interest on tax increment bonds or bonds issued
pursuant to the Plan or pursuant to Minnesota Statutes,
Chapter 462C and Minnesota Statutes, Sections 469.152
to 469.165, or both; and
7. to accumulate or maintain a reserve securing the
payment when due of the principal and interest on the
tax increment bonds or bonds issued pursuant to
Minnesota Statutes, Chapter 462C and Minnesota
Statutes, Sections 469.152 to 469.165, or both.
These revenues shall not be used to circumvent any levy
limitations applicable to the HRA nor for other purposes
prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Subsection 22. Notification of Prior Planned Improvements.
The HRA shall, after due and diligent search, accompany its
request £or certification to the County Auditor or its notice of
the Tax Increment Financing District enlargement with a listing
of all properties within the Tax Increment Financing District or
area of enlargement for which building permits have been issued
during the eighteen (18) months immediately preceding approval of
the Plan by the municipality pursuant to Minnesota Statutes,
Section 469.175, Subd. 3. The County Auditor shall increase the
original value of the Tax Increment Financing District by the
value of improvements for which a building permiC was issued.
� Pursuant to Mirinesota SCatutes, Section 469.177, Subd. 4,
the HRA has reviewed the area to be iaaluded in the Tax Increment
1183029.4 12
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Financing District and found no parcels for which building
pexmits have been issued during the 18 months immediately
preceding approval of the Plan by the HRA.
Subsection 23. Excess Tax Increments.
Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in
any year in which the tax increment exceeds the amount necessary
to pay the costs authorized by the Plan, including the amount
necessary to cancel any tax levy as provided in Minnesota
Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess
amount to do any of the following:
1. prepay any outstanding bonds;
2, discharge the pledge of tax increment therefor;
3. pay into an escrow account dedicated to the payment of
such bond; or
4, return the excess to the County Auditor for
redistribution to the respective taxing jurisdictions
in proportion to their local tax rates.
In addition, the HRA may, subject to the limitations set
forth herein, choose to modify the Plan in order to finance
additional public costs in the Tax Increment Financing District
or Redevelopment Project Area.
Subsection 24. Reauirements for Agreements with the
Develoger.
The HRA will review any proposal for private development to
deternline its conformance with the Redevelopment Plan and with
applicable municipal ordinances and codes. To facilitate this
effort, the following documents may be requested for review and
approval: site plan, construction, mechanical, and electrical
system drawings, landscaping plan, grading and storm drainage
plan, signage system plan, and any other drawings or narrative
deemed necessary by tihe City to demonstrate the conformance of
the development with city plans and ordinances. The HRA may also
use the Agreements to address other issues related to the
development.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no
more than 10 percent, by acreage, of the property to be acquired
in the Tax Increment Financing District as set forth in the Plan
shall at any time be owned by the ARA as a result oE acquisition
with the proceeds of bonds issued pursuant to Minnesota Statutes,
Section 469. 178, without the HRA having, prior to acquisition in
excess of 10 percent of the acreage, concluded an agreement for
the•development or redevelopment of the properCy acquired and
which provides recourse for the HRA should the development or
redevelopment not be completed.
1183029.4 13
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Subsection 25. Other Limitations on the Use of Tax
Inczement.
1. General Limitations. All revenue derived from tax
increment sha11 be used in accordance with the Plan.
The revenues shall be used to finance, or otherwise pay
the capital and administration costs of the
Redevelopment Project Area pursuant to the Minnesota
Statutes, Sections 469.12a to 469.134;
These revenues shall not be used to circumvent existinq
levy limit law. No revenues derived Erom tax increment
shall be used for the acquisition, construction,
renovation, operation or maintenance of a building to
be used primarily and regularly for conducting the
business of a municipality, county, school district, or
any other local unit of government or the state or
federal government, or for a commons area used as a
public park, or a facility used for social, recreation
or conference purposes. This provision shall not
prohibit the use of revenues derived from tax
increments for the construction or renovation of a
parking structure.
2. Poolinq Limitations. At least 80 percent of tax
increments from the Tax Increment Financing District
must be expended on activities in the Tax Increment
Financing District or to pay bonds, to the extent that
the proceeds of the bonds were used to finanCe
activities within said district or to pay, or secure
payment of, debt service on credit enhanced bonds. Not
more than 20 percent of said tax increments may be
expended, through a development fund or othercvise, on
activities outside of the Tax Increment Financing
District except to pay, or secure payment of, debt
service on credit enhanced bonds. For purposes of
applying this restriction, all administrative expenses
must he treated as if they were solely for activitiss
outside of the Tax Increment Financing District.
3. Five Year Limitation on Commitment of Tax Increments.
Tax increments derived from the Tax Increment Financing
District shall be deemed to have satisfied the 80
percent test set forth in paragraph (2) above only if
the five year rule set forth in Minnesota Statutes,
Section 469. 1763, Subd. 3, has been satisfied; and
beginning with the sixth year following certification
of the Tax InCrement Financing District, 80 percent of
said tax increments that remain after expenditures
� permitted under said five year rule must be used only
to pay previously commitment expenditures or credit
1183029.4 �-4
6�-woq
enhanced bonds as more fully set forth in Minnesota
Statutes, Section 469.1763, Subd. 5.
a, ExDenditures Outside District. The Authority hereby
elects to spend an additional ten percent o£ the tax
increments on activities located outside the Tax
Increment District as permitted by Minnesota Statutes,
Section 469.1763, subd. 2(d) provided that the
expenditures meet the following requirements:
(1) they are used exclusively to assist housing
that meets the requirements for a qualified low-income
building as defined in Section 42 of the Internal
Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of
housing as defined under Section 42(c) of the Code less
the amount of any credit allowed under Section 42 of
the Code, and
(3) They are used to (i) aaquire and prepare the
site for housing, (ii) acquire, construct or
rehabil.itaCe the housing or (iii? make public
improvemenCs directly related to the housing.
Subsection 26. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la,
the county board may require the HRA to pay for all or part of
the cost of county road improvements if, the proposed development
to be assisted by tax increment will, in the judgement of the
county, substantially increase Che use of county roads requiring
construction of road improvemenCs or other road costs and if the
road improvements are not scheduled within the next five years
under a capital improvement plan or other county plan.
In the opinion of the HRA and consultants, the proposed
development outlined in this Plan will have little or no impact
upon county roads. If the county elects to use increments to
improve county roads, it must notify the HRA within thirty days
of receipt of this Plan.
Subsection 27. Assessment Agreements.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8,
the HRA may enter into an agreement in recordable form with the
developer of property within the Tax Increment Financing District
which establishes a minimum market value of the land and
completed improvements for the duration of the Tax Increment
Financing District.� The assessment agreement shall be presented
to the assessor who shall review the plans and specifications for
the improvements constructed, review the market value previously
1183029.4 15
�-wo9
assigned to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in
the assessment agreement appear, in the judgment of the assessor,
to be a reasonable estimate, the assessor may certi£y the minimum
market value agreement.
Subsection 28.
Pdministration of the Tax Increment Financing District will
be handled by the Executive Director o£ the HRA.
Subsection 29. Financial Reportincr Requirements.
The BRA will comply with all reporting requirements of
Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a.
1183029.4
16
EXHIBIT A
Oo�-toOq ,
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a
EXHIBIT B
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EXHIBIT C
Assum tions Re ort
City of St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibley Park) Housing Devetopment
Scenario A- Phase One To� Project (26 years, 8% note)
Type of Tax Increment Financing District
Maximum Duration of TIF District
Certification Request Date
Decertification Date
Base Estimated Market Vaiue
Times: First SO
Excess
Originai Net Tax Capacity ( i)
Assessment/Collection Year
Base Estimated Market Value
Increase in Estimated Market Value (7)
200112002 2002/2003 2003/2004 2004/2D05
Total Estimated Market Value
Times: Fiist SO
Excess
Total Net Tax Capacity (7)
25 years from 1st increment
09/01 /00
7Z07/27 �26 Years of Increment)
2000/2001
$683,500
0.00%
0.00 %
Cp—W�9
$683,500 $683,500 5683,500 $683,500
2,000,000 75,065,744 15,065,744 15,065,744
52.683,500 575,749,244 $15,749.244 $15.749,2A4
0.00°/0 0 0 0 0
0.00% 0 0 0 0
Base inflation Factor
Local Tax Capac;ty Rate
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax flate (Onfy if Local-Effort TIF)
Bonds
Bonds Da[ed
First �nterest Date
Underwriters Discount
NA
NA
NA
0
0
$70,577
�41,527 $265,389
$265,389 $265,389
NA
148.5531 (Payabie 2000)
0.0000 % (NA for Housing)
5%,-10% (See Note #3)
0.00%
NA
Note (Pav-As-YOU-Gol
Note Dated 09/01l00
Note Rate 8.00%
LGAMACA Loss:
Wat Annual local Contribution Be Made (Yes or Noj? (2) Yes
I.S.O k625 Equalized Tax Capacity Rate NA
1.S.D �t625 Sales Ra[io � NA
City Sales Ratio & Tazable Net Tax Capacity NA NA
Present Value Date & flate 09/Ot/00 5.00%6
(i) See "Schedule ot Project Values" forcalculation of Market Values and Net Tax Capacities.
(2) Assumes annual contributlon w�Il be made upfront and will not be available tor debk service.
(3) Assumes admin. retainage of 5°6 on apartments and 10°0 on townhomes and retail space.
Prepared by: Springsted Incorporated (printed on 09/78/2000 at 9:58 AM) C-1
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Assum tions Re ort
City oi St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibtey Park) Housing Development
Scenario B- Phase One Rental-Retail Onty (26 years, 8% note)
Type o( Tax Increment Financing District
Maximum Duration of TIF District
CeRification Request Date
Decedification Date
Base Estimatzd Market Value
Times: First $0
Excess
Original Net Tax Capacity (t )
0.00%
0.00%
25 years trom ist incremeM
09/Oi/00
12l0ff27 (26YearsofVncrement)
2000/2001
S432,073
0
0
58,063
AssessmenVCOtiection Year
2001/2002 2002/2003 2003/2004 2004l2005
Base Eslimated Market Value
Increase in Estimated Market Value (i)
Total Estimated Markei Value
Times: First SO
Excess
7ota1 Net Tax Capacity (t)
5432,073 $432,073 $432,073 S432,073
7,264,295 8,412,372 8,472,372 8,412,372
$1,696,368 58,844,444
0.00 / 0 0
0.00% 0 0
53t,656 $t70,232
Base Infiation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribu[ion From 71F District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax Rate (Only if Locai-Effort TIF)
Bonds
Bonds Dated
Firstfnterest Date
Underwriters Discount
NA
NA
NA
LGA/HACA Loss:
Will Annual Locai Contribution Be Made (Yes or No)? (2)
I.S.Q �625 Equalized Tax Capacity Rate
I.S.D n625 Sales Ratio .
City Sa1es Ratio & Taxable Net Tax Capacity
Present Vaiue Date & Rat2
58.844,444 S8,B44,444
0 0
$170,232
$170,232
NA
148.553 % (Payable 2000)
0.0000 % (NA tor Housing)
5%-10°/, (See Note �3)
0.00%,
NA
Note (Pav-AS-You-Go1
Note Dated
Noie Rate
Yes
NA
NA
NA
04/O7/00
09/Oil00
B.00 %
NA
5.00°/
(1) See "Schedule of Pro�ect Values" for calculatwn of Market Vaiues and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be availabie for debt servicz.
(3J Assumes admin. retainage of 5% on apartments a�d 10 % on touvnhomes and retaif sQace.
Prepared by: Springsted Incorporaled fP��nted on 09/78/2000 at 9:59 AM) C-3 Tif091800b.xis
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Assum tions Re ort
00 —Iz�e R
City of St. Paui, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
IJorth Quadrant (Sibiey Park) Housing Devefopment
Scenario C- Phase One Townhomes Only (26 years, S% note)
Type of Tax Increment Financing District
Mazimum Duration oi TIF District
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: Frst SO
Excess
Original Net Tax Capaciry (7)
0.00%
0.00 %
0
0
$2,514
AssessmenUCollection Year
Base Estimated Market Value
Increase in Estimated Market Value (1)
7otai Estimated Market Value
Times: Rrst
Excess
Tofal Net Tax Capacity (1)
25 years from ist increment
09lOt/00
iZ01/27 (26 Years of Increment)
2400l2061
�5251,427
2001/2002 2002/2003 2003/2004 2004/2005
$251,427 $251,427 $251,427 $251.427
735,705 6,653,3�3 6,653,373 6,653,373
�987,132 $6,904,800 $6,904,800 $6,904,800
SO 0.00 (
0.00%
Base Inflation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribution From TiF District
Administretive Retainage Percent (maximum = 10°/,)
Pooling Percent
CityTax Rate jOniy'rf Locai-Effort TIF)
Bonds
Bonds Dated
First Interest Date
Undervvriters Discount
NA
NA
NA
IGA/HACA Loss:
Will Annual Local Contribution Be Made (Yes or No)? (2)
I.S.D #625 Equalized 7ax Capacity Rate
I.S.D k625 Sales Ratio �
City Sa�es Ratio & Taxable Net Tax Capacity
Present Vatue Date 8 Rate
0 0
0 0
$9.871 $95,157
0 0
0 0
595,157 595,157
NA
148.553%, (Payable 2000)
0.0000°/, (NA tor Housing)
5°/,•10% (See Note #3)
0.00%
NA
Note (Pav-As-You-Go)
Note Dated
Nofe Rate
Yes
NA
NA
NA
09/07/00
09/07/00
8.00 %
NA
5.00%
(1) See "Schedule oF Project Values" forcalculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upiront and wlll not be availabie for debt service.
(3j Assumes admin. retainage of 5% on aparlments and 10 % on townhomes and retail space.
Prepared by: Springsted Incorporated (printed on 09l78/2000 at 10:00 AM) C-5 Tif097800c.xls
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