00-731Council File # C� + 7 3,
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ORIGINAL
Presented By
Referred To
R05olUtiOn #
Green Sheet # �D,�n��
BE IT RESOLVED by the City Council of the City of Saint
Paul, Minnesota (the "City") as follows:
Section 1. Recitals.
1.01 On June 23, 1999, the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "Authority")
established the North Quadrant Redevelopment Project Area (the
"Redevelopment Project Area") and adopted a redevelopment plan
therefor (the "Redevelopment Plan��).
1.02 The Authority has asked the City Council to approve the
creation, within the Redevelopment Project Area, of Tax Increment
Financing District No. 1(North Quadrant) (the "Tax Increment
District") and the adoption oE a Tax Increment Financing Plan
therefor, all pursuant to and in accordance with Minnesota
Statutes, Section 469.174 through 469.179 (the "Tax Increment
Act") and Laws of Minnesota 2000, Chapter 490, Article 11,
5ection 40 (the "Special Law").
1.03 The Authority has performed all actions required by law
to be performed prior to the creation of the Tax Increment
District and adoption of a Tax Increment Plan therefor,
including, but not la.mited to, notificaCion of Ramsey County and
Independent School District Number 625, which have taxing
jurisdiction over the property to be included in the Tax
Increment District, and has requested that the City approve the
adoption of the Tax Increment Financing Plan and the creation of
the Tax Increment District £ollowing the holding of a public
hearing upon published and mailed notice as required by law.
2.01 The City Cpuncil hereby finds that the creation of Tax
Increment FinanCing District No. 1(NOrth Quadrant) and adoption
of a Tax Increment Plan therefor, are intended and, in the
judgment oE the City Counci.l, its effect will be, to carry ouC
the objectives of the Redevelopment Plan and to create an impetus
for the construction in the City of affordable and mixed income
housing, will increase employment and otherwise promote certain
public gurposes and accomplish certain objecCives as specified in
the Redevelopment Plan and Tax Increment Financing Plan.
1142957.1
' RESOLUTION APPROVING THE
THE CREATION OF TAX INCREMENT FINANCING DISTRICT
NO. 1(NORTH QUADRANI'), AND THE ADOPTION OF A
TAX INCREMENT FTNANCING PLAN THEREFOR
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2.02 The City Council hereby finds that Tax Increment
Financing District No. 1(North Quadrant) qualifies as an
"housing district" within the meaning of the Tax Increment Act
and the Special Law Por the following reasons:
The property to be included in the Tax Increment
District is located in the Northeast quadrant of
the City, i_e. within the 15 acre site bounded by
Interstate 94 on the north and east, Jackson
Street on the west and Seventh Street on the
south, together with the west side o£ Jackson
Street to midblock between Interstate 94 and South
Street.
'I}aenty percent of the housing units the Tax
Increment District will 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 will 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
Tax Increment District will not be subject to any
income limitations.
Family income means the median gross income for
the City as determined under section 42 of the
Internal Revenue Code of 1986, as amended. The
income requirements will 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
will initially be purchased and occupied by
individuals whose family inoome satisfies the
income requirements. For residential rental
property, the income requirements apply for the
duration of the Tax InCrement District.
The fair market value of the improvements which
are constructed in the T� Increment District for
commercial uses or for uses other than owner-
occupied and rental mixed-income housing will not
consist 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 wi11 be determined using
the cost of construction, capitalized income, or
other appropriate method of estimating market
value.
2.03 The City Council hereby makes the following findings:
1192957.1
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(a) The City Council further finds that the
proposed development, in the opinion of the City
Council, would not occur solely through private
investment within the reasonably foreseeahle future
and, Cherefore, the use of tax increment financing is
deemed necessazy_ The specific basis for such finding
being:
The parcels on which the development will
occur would not be developed in the
reasonably foreseeable future because they
are currently used for surface parking, which
use generates significant income to the
current owner of the property considering the
owner�s minimal investment in the property.
(b) The City Council further finds that the Tax
Increment Financing Plan conforms to the general plan
for the development or redevelopment of the City as a
whole. The specific basis for such finding being:
The Tax Increment Financing Plan will generally
compliment and serve to implement policies adopted
in the City's comprehensive plan. The development
contemplated is in accordance with the existing
zoning for the property.
(c) The City Council further finds that the Tax
Tncrement Financing Plan will afford maximum
opportunity consistent with the sound needs of the City
as a whole for the development of the Tax Increment
District by private enterprise. The specific basis for
such finding being:
The proposed development to occur within the Tax
Increment District is housing. The development
will increase needed affordable and mixed income
housing in the City and will increase the market
valuation of the City.
(fl) For purposes of compliance with Minnesota
Statutes, Section 469.175, Subdivision 3(2), the City
Council hereby finds that the increased market value of the
property to be developed within the Tax Increment District
that could reasonably be expected to occur without the use
of tax increment financing is $-0- , which is less than the
market value estimated to result from the proposed
development (i.e., $15,065,744) after Subtracting the
present value of the projected tax increments for the
maximum duration of the Tax Increment District (i.e.,
$3,481,295). In making these findings, the City Council has
noted that the property has been undeveloped for many years
1192957.1
ORIG4NAL
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and would likely remain so if tax increment financing is not
available. Thus, the use of tax increment financing will be
a positive net gain to the City, the School District, and
the County, and the tax increment assistance does not exceed
the benefit which will be derived therefrom.
2.04 The provisions of this Section 2 are hereby incor-
porated by reference into and made a gart of the Tax Increment
Financing Plan.
Section 3. Creation of Tax Increment Financing District No.
1(North Ouadrant) and the Tax Increment Financina Plan therefor.
3.01 The creation of Tax Increment Financing District No. 1
(North Quadrant) is hereby approved and the Tax Increment
Financing Plan therefor is hereby adopted.
3.02 The sta£f of the City, the staff of the Authority and
the City's and Authority's advisors and legal counsel are
authorized and directed to proceed with the implementation of the
Tax Increment District and the Tax Increment Financing Plan and
for this purpose to negotiate, draft, prepare and present to the
Board of Commissioners of the Authority for its consideration all
further plans, resolutions, documents and contracts necessary £or
this purpose.
Adopted by Council: Date �O�
l
Adoption Certified y Council Secretary
HY: � �—
Approved by Mayor: Date � LB(y�D
sy:
Reguested by Department of:
Plannina & Economic Develonment
�
By: `�/
t'�
Form Approved by City Attorney
I
�% �� / �,
Approved by Mayor for Submission to Council
B 1 �`r�"'�
DEPARTMENt/OFFICE/COUNCIL: DATE INITIATED GREEN SHEET No.: 101691
PED 7/28/00 0 0-7 3�
CONTACI PERSON & PHONE: - INmnLmA'es miTlnunAiE
ALLEN CARLSON 6-6616 � y DEPARI'MENT DIR s ct�
covxca.
M[JSI BE ON COUNCII, AGENDA BY (DATE) �G� 3 CITY ATTORNEY �I CITY CLERK
All�iLSY 9, ZOOO FOR FINANCIAL SERV DII2. _ FAIANCIAL S V/ACCTG
ROUTING 4 MAYOR (OR ASST.) 1�A�S�A� �
PUBLIC HEARING ORDER coc.�nssiox
TOTAL # OF S[GNA7'URE PAGES _I (CLIP ALL LOCATIONS FOR SIGNATURE)
acriox xEQuESrEV: . Public hearing to approve T� Increment Financing Disfrict No. 1(North Quadrant)
RECOMIv]ENDATI013S: Approve (A) or Reject (R) PERSONA[. SERViCE CON7'RAC1S M[7ST ANSWER TI�E FOLLOWRVG
QUESTIONS:
PLANNING COA9vIISSION 1. Has this personiSrm ever workeA undet a conhact for this depaztmenY?
CIB COM��IITTF.E Yes No
CIVII. SERVICE COMMISSION 2. Has this person/fum ever been a city employee?
Yes No
3. Does this person/fimi possess a skill not noanal7y possessed by any current city employee?
Yes No
Explain aIl yes answers on separate sheet and attach to green sheet
INI17A1'ING PROBLEM, ISS[IE, OPPORT[7N11'Y (WLo, What, When, Where, Why):
Creation of t� increment financing and street on block bounded by 7th, 8th Wacouta and Sibley streets will a11ow
fmancial assistance to construction of ll4 rental units of which 46 are affordable, 38 for sale town homes and
13,000 sq. ft. of commercial.
ADVANTAGES IF APPROVED�
This project is part of North Quadrant Redevelopment Plan to create urban village in North Quadrant of downtown
St. Paul.
DISADVANTAGESIFAPPROVED:
DISADVANI'AGES IF NOT APPROVED:
Project will not proceed forwazd.
TOTAL AAiOUNT OF'fRANSACI'iON: $ COSTlREVENUE BUDGETED:
FL7NDING SOURCE: ACTIVTTY NUMBER:
FIlVANCL4L INF012MATION: (EXPLAIN) A �„ps��rct� Cerfe�
��
��P�YS2�Sha.ed�KAPLANt.�^%��frm
po ��71
Interdepartmental Memorandum
CITY OF SAIN'I' PAUL
TO: Council President Bostrom
Councilmember Benanau
Councilmember Blakey
Councilmember Coleman
Councilmember Harris
Councilmember Lantry
Councilmember Reiter
FROM: Brian Sweeney
Allen Cazlson
DATE: 7uly 28, 200�
RE: PUBLIC FIEARING: RESOLUTION ESTABLISffiNG TAX INCREMENT
FINANCING DISTRICT NO.1(NORTH QUADRANT) AND ADOPTING
THE RELATED TAX INCREMENT FINANCING PLAN
Purpose
The purpose of this public hearing is to receive public comment and request the City Council to
approve a resolution which establishes TaY Increment Financing District No. 1(North Quadrant)
which is bounded by 7`", 8�' , Wacouta and Sibley Streets. Adoption of the Tax Increment
District will allow increments to be generated to assist in the fmancing of a proposed 114
multifamily rental building with 13,000 square feet of commercial space and a 38 unit for sale
town home development. Twenty-two percent of the rental units will be affordable to
households at or 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,
BackgroundlProposal
The North Quadrant Redevelopment Project Area is on the immediate edge of the core of
downtown Saint Paul and is generally bounded by Highway I-94, Jackson Street and East 7th
Street. The area is currently characterized by underutilized buildings and large surface parking
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lots although there aze positive assets such as the First Baptist Church, St. Mary's Catholic
Church, as well as an assortment of smaller viable businesses. In June of 1999, the City Council
adopted the North Quadrant Redevelopment Plan wluch set development objec6ves and urban
design guidelines for the azea. A major component of the plan was to foster an 3ncrease in the
residential population of downtown including increased opporiunities for affordable housing in
accordance with the Saint Paul Housing Plan.
Sherman and Associates specializes in the design, construction and financing of rental and
ownership housing in Minnesota, North and South Dakota and Wisconsin. They have developed
over 3,000 of single family and multifamily homes since 1978. The Lander Group is a full
service real estate development company known for high quality urban infill housing. On
December 22, 1999, the HI2A Boazd approved Resolution 99-12/22-11 granting the Developer
tentative developer designation with the task to finalize financing, prepaze plans and negotiate
terms and conditions of a development agreement.
Proposal
The Developer is proposing a two phase project beginning conshuction this fall on Block 31
adjacent to 7th Street. Phase Two would start in the suuuiier of 2001 on block 17. The
Developer's proposal(3.0 acres) constitutes approximately ten percent (10%) of the totalland
area of the North Quadrant Redevelopment Project Area . The multifamily rental units which
would be 4- 5 stories high would be located along 7th Street and Temperance Street. The 76
for-sale town homes would front along the new park on 8th and Sibley Street. Project I
construction will include a 114 unit multifamily L-shaped building with 13,000 square feet of
commerciaUretail space on the first floor fronting 7th Street and underground parking far entire
building. Project I will also include construction of 38 for-sale town homes.
Project II will be a mirror image of Project I except that rental component will have no
commercial space and 118 units. In order to accommodate Project II, Sibley Street will need to
be moved sixty feet to the East to aliow for a similaz size biock as Project I. The cost of moving
the Street, estnnated at $253,OOQ, will be funded with the Communities Livability Grant the City
was recenUy awarded by the Metropolitan Council.
The nronosed unit
20
>, mix and rents for the Project I multi:
Studio MktRate 780
32 1 BR
16 2BR
17 � 2BR (Sec 8)
8 � 3 Br (Sec 8)
I1 I 1BR
6 I 2 BR
Mkt Rate
Mkt Rate
30
30
50
50
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1,030
1,290
684
925
b16
738
rental buildine is as follows:
550
850
1,100
L,L00
1,300
850
1,100
00 -'1��
4 3 Br 5� 8i4 1,300
114
Project II will have an almost identical mix of unit types and afford ability. For Project I, 40%
of units wili be affordable pursuant to the Housing Action Plan's policy goals. Specifically, 22%
(25) of the units will be affordable to households at or below 30% of the azea median income and
18% (21) units wili have rents affordable to households at 50% of the azea median income. The
annual income of a two person household at 50% of the area median income is $26,300, whereas,
the income for a 4 person household at or below 30% of the area median income is $19,700.
The 38 Project I for sale units will range in size from 850 to 2,250 square and sale prices from
$119,000 to $345,000, thus being affordable to households between 80% and 140°/a of the azea
median income. The higher priced units will be two stories with separate ground floor access.
The upper two levels of the complex wiil have single level flats. Appro�mately, 60% of the
units will be affordable to households at or below 115% of the area median income.
The under ground parking structure will have a total of 143 spaces of which 88 spaces wi11 be
devoted to the rental units and 55 spaces will be devoted to the for sale units.
Proposed Financial Structure ofthe Project
Due to timing and limited City financial resources it is proposed that Project I and Project II be
fmanced separately and differently. The proposed means to finance the Project I rental
component is as follows:
Sources of Fmds Uses of Funds
FicstMortgage $7,125,000 LandSales $335,QQ0
Tae Increment Mortgage 1,945,000 Construction 12.008,000
ffi2A HOME Defe[red Mortgage 750,000 Parking Structure 1,600,000
II2A gcant 250,000 Professionffi Fees 451,60�
Met Council Defened Mortgage - 500,000 Soft Costs 165,800
Inclusionary
MHFA Deferred Mortgage - 70Q000 Construcfion Financing Costs 759,600
Employer Challenge
Family Housing Fund Deferred I50,000 Working Capital Reserve 151,400
Mortgage
Taac Credit Syndicated Equity 5,200,000 Operating Deficit Reserve 30Q000
Developer Letter of Credit 481,400 Developet Fee 1,30Q000
Total $17,1O1,A00 Total $17,1O1,A00
The $7,125,000 first mortgage loan to be repaid &om pro}ect revenues will be a 221(d}(4) HUD
insured note amortized over a 40 yeu term and interest rate of 8.5%. The tax increment
mortgage wall also be HUD insured with a amortized 25 year term, interest rate of 8.5% and
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secured with a pay-as-you-go tax increment note provided by the City. The pay-as-you-go note
only pledges increments from the TIF district and places no obligation or debt upon the City or
HRA. The Metropolitan Council, Minnesota Housing Finance Agency and Family Housing
Fund have jointly awarded $1,350,000 of defened subordinate mortgage loan proceeds to Project
I. Forty percent of Phase One will have an eligible basis to syndicate low income housing tax
credits. The Developer will need approximately $522,000 of tax credits, which the City has
using the balance of its 2000 allocation and all of its yeaz 2001 allocation. The tax credit will
leverage approximately $5.2 million of syndicator equity to Project I covering 30% of the total
development cost. U.S. Bank is purchasing the credits at a premium of $0.92 on the dollar.
(Normal rate is about $0.81) The premium being paid by U.S. Bank enable the City to
successfully receive $700,000 under MHFA's Employer Challenge fund program (part of the
$1.35 million contribution). The Developer will be required to fund $481,000 towards a working
capital and operating deticit reserve fund, therefore the actually developer fee will be $819,000
which is lower than the $833,000 allowed pursuant to the developer fee resolution adopted by
the Board.
Despite the substantial financing resources secured so far for the rental building, the project is
still $1 million short of being fully funded. Staff is recommending the gap be filled with a
$750,000 loan from the federal HOME Program. The loan would be amortized over 30 year with
a 3% interest rate. In addition, staff is recommending a$250,000 grant from the HRA Enterprise
fund which would help to fulflll the City's local match requirement to use tax increment funds
for ProjectI.
The proposed financiug for the 38 for sale units of Project I is as follows:
Sources of Funds Uses of Funds
Snles Proceeds $7,672,000 Acquisition $ll5,000
T�x Increment Funds I,OOQ000 Underground Parking 950,000
MHFA/Met Council 900,000 Site work 150,000
Construction 5,625,000
Holding costs 575,000
ProfessionaVMarketing 671,000
ArchitecUEngineering 236,000
Contingency - 2% 200,000
Profit 1,050,000
Total $9,572,000 Total $9,572,000
The sales price points are based upon the style of units being constructed and estimates from the
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M�eld Matket Study. Its estiruated that sales proceeds will cover approxiinately 80% of the
actually cost to construct the town homes. A major cost of Project I is the underground parking
shuchue. Basically, the tas increment provided to Project I is paying the cost of the parking.
The average per unit cost is $251,894 of which pazking constitutes $25,000 per unit. The
average sales price is $201,894, thus leaving a$SQ,OQO gap between sale proceeds and cost. The
City's portion to fill the gap is $26,315 per unit wluch is withiu established City policy. The
City's financing gap is recommended to be funded enfuely through tas increment funds in
which the Developer will sell a note provided by the City to an investor such as Fannie Mae or
U.S. Bank. The Developer will be encouraged to increase the sales prices as units aze sold. 5taff
has negotiated a 35% participation in the increased base sales price of any unit so1d. Should
sales prices increase during Project I, new base sales prices will be established for Project II
which will result in a lower tas increment participation on the part of the City.
Taa Increment Financing District
Due to the high cost of development including land acquisition and fmancing the proposed
improvements such as the underground parking for Project I, this project is feasible onip through
assistance, in part, from tax increment financing. The district would be bounded by 7�`, 8`�` ,
Wacouta and Sibley Streets. A copy of the Plan and project azea map is attached as E�ibit A.
The 2000 session of the Minnesota Legislature passed and the Governor signed a speciallaw for
the Northeast Quadrant that allows the creation of a TIF district for an owner and rental occupied
residenfial housing development for mixed income occupancy. Formerly, TIF district
regulations either appiied to rental or to ownership exclusively. Under the new law, only for the
North Quadrant, 60% of the units in the development must have income less than 115% of the
area median income and 2Q% of the units must be occupied by households at or below 50% of
the area median income. The balance of the units do not have income restrictions. Under prior
eYisting law 95°l0 of the ownership units had to be occupied by households at or below 115% of
the area median income. The new law provides much more flexibility in formulating
developments and stil] provides a high level of afford ability.
Public Purpose
Project I meets several of the objectives, strategies and operating principles of the Housing
Action Pdan 2000 as follows:
1. Support the production of ownership and rental housing in Saint Paul. Project I`s 152
uniis meet 20% of the goal to provide immediately 750 new housing units in the city.
The availability of rental housing, especially affordable rental housing is extremely low.
2. provides a diversity of building and unit types, rental and ownership.
3. Fosters economic integratian for both rentat and ownership units.
4. Subsidizes the provision of low income housing units in new housing developments.
5. Provides quality housing to create an ariracfive neighborhood and links naw development
to broader community objectives. Project I promotes "New Urbanism". It combines
mixed-use, mixed-income, transportation linkages and employment connections.
6. follows the principles of the Saint Paul on the Mississippi Development Framework.
Page 5 of 7
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Neighborhood Input
The CapitolRiver Council and its North Quadrant Advisory Committee have actively worked
with the Developer regazding the design and financing of Project I and II.
Findings of Fact to Support Adoption of Tax Increment Financing Bistrict No. 1(North
Quadrant)
The reasons and faets supporting the findings for adoption of the Tax Increment Financing
District I�3o. 1(North Quadrant) pursuant to MN Statutes, Section 469.175, Sub. 3, are as
foliows:
1. Finding tTzat the District is a°housing distr-ict. "
This Taac Increment District is in the public interest because it will provide needed
multifanuly housing Saint Paul of which at least 20% of the units will be affordable to
households at or below 50% of the azea median income. In fact the district will pzovide
affardable housing of which 40% will be affordable for rental housing and 60% of the
ownership units will be affordable pursuant to state definition of affordable ownership
housing.
2. Finding that the proposed deveZopment, zn the o�inion of the Council, would not
reasonably be expected to occur solely through private investment within the reasonably
for�eseeable�istac�-e and tluit the increased market value of the site that coutd reasonably
be expected to occur without the use of tc� increment fznancing would be Zess than the
increase in the market vatue estimated to result from the proposed development after
subtracting the present value of the projected tax inerements for the maxiTnum duratlon of
the district permitted by the plan.
Due to the high cost of development on the parcels including the cost of land acquisition
and financing the proposed improvements, this project is feasible only through assistance,
in part, from tax increment financing.
A comparative analysis of estimated mazket values both with and without establishment
of the Taac Increment Financing District No. 1(North Quadrant) and the use of tas
increments has been performed as described above. If all development which is proposed
to assist with t� increment were to occur in the proposed Project I, the total increased
market value would be up to $15,749,244. It is the Council's finding that no
development with a mazket value of greater than $15,744,244 would occur without ta�c
increment assistance in this district within 15 years. This finding is based upon evidence
from general past eaperience with the high cost of providing public improvements in the
general azea of this District.
Finding that the Tczz Increment Financing District No. 1(North Quadrant) conforms to
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the general plan for the development or redevelopmenf of the municipality as a whole.
The Establishment of the Tas Increment Financing District No. 1(North Quadrant) for
the North Quadrant Development Project Area conforms to the City's Comprehensive
Plan and Saint Paul on the Mississippi Development Framewark .
4. Finding thar the Establishment of the Tax Zncrement Financing Dis£rict Na 1(Norih
Quadr�ant) far the North Quadrant Redevelopment ProjectArea will afford mazimum
opportunity, conszstent with the sound needs of the City as a whole, far the development
of the North Quadrant Redevelopment Project.
The number of housing units to be developed will increase the housing stock in the City
and the State of Minnesota.
Recommendation
Staff recommends and requests the City Council to consider adoption of the attached resolution
which approves and adopts the following:
Estabiishment of the Tax Increment Financing District No. 1(North Quadrant); and
The T� Increment Financing Plan to finance the Project.
Statement of the Council President
Being duly authorized by the City Council to conduct this Public Hearing, the hearing is now
open. This Public Heazing is calied for the proposed purpose to consider the following:
Estabiishment of the Tau Increment Financing Disttict No.l (North Quadrant); and
Approval of the TaY Increment Financing Plan.
Notice of tnne, place, and purpose of this hearing was published in the Saint Paul Legal Leger on
July 27, 2000. The affidavit of the publicafion of the Notice of Public Hearing will be made a
part of these proceedings.
Is there anyone who wishes to be heard on this item? If not, the Chair will declare this Public
Hearing adjourned.
Attachments
Tax Tncrement Financing District No. 1(North Quadrant)
Resolution approving TaY Increment Financing District No. 1(North Quadrant}
Page 7 of 7
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00-'?3�
TAX INCREMENT FINANCING PL�1N
for the establishment of
TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRADTT)
(a housing district)
within the
NORTH QUADRAI3T REDEVELOPMENT PROJECT AREA
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUI3TY
STATE OF MINNESOTA
Adopted: August 9, 2000
This documenC was dra£ted by: SRIGGS AND MORGAN, (MNID)
Professional Association
2200 First 23ational Bank Bldg.
St. Paul, N3N 55101
(651) 223-6625
1193029.2
00 -73 �
TABLE OF CQNTENTS
(for reference purposes only)
TAX INCREMENT FINANCING P TAN
FOR TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRANT)
Pa4e
Subsection 1.
Subsection 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6
Subsection 7
Subsection 8
Subsection 9.
Subsection 10
Subsection 11
Subsection 12
Subsection 13
Subsection 14
Subsection 15
Subsection 16
Subsection 17
Subsection 18
Subsection
Subsection
Subsection
Subsection
19.
20.
21.
22.
8ubsection 23
Subsection 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
Einancing District No. 1 . . . . . . . .
Parcel in Acquisition . . . . . . . . . .
Development Activity in Tax Increment
FinanCing District 230. 1 for which
Contracts have been Signed . . . . . . .
Other Speci£ic 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 . . . . . . . . . . . . . . . .
ModiEications to Tax Increment Financing
Aistrict . . . . . . . • • • - • • • •
Administrative Expenses . . . . . . . .
Limitation of Increment . . . . . . . .
Use of Tax Increment . . . . . . . . .
Notification of Prior Planned
Improvements . . . . . . - . - • • • •
Excess Tax Increments . . . • • • • .
Requirements for Agreements with the
Developer . . . . . . . . . . . . . . .
OC.her Limitations on the L3se of Tax
Increment . . . . . . . . . . . . . . .
County Road Costs . . . . . . . . . . .
Assessment Agreements . . . . . . . . .
Administration of the Tax IncremenC
Einancing District . . . . . . . . .
Financial Reporting Requirements . . .
. 2
. 3
. 3
. 3
. 3
. 4
. 4
. 4
. 5
�
9
10
10
12
12
13
13
14
is
15
15
15
1183029.2
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EXHISIT A- Map of Ta�c Sncrement District No. 1
EXHIBIT B- Map of 13orth Quadrant Redevelopment Project Area
EXHIBIT C- Projected Tax Increments
1183029.2
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TAX INCREMENT FINANCII3G PLAN FOR
TAX INCREMENT FINA23CING DISTRICT NO. 1(NORTH QUADRANT)
Subsection 1. Forward. The Aousing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "HRA"), and
iCs staff and consultants have prepared the following information
for the establishment of Tax Increment Financing District No. 1
(23orth 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. Statutorv Authoritv. There exist areas
within the City of Saint Paul (the "City") where public
involvement is necessary to cause devel.opment to occur. To this
end, the HRA has certain statutory powers pursuant to special
legislation (Laws of Minnesota, Chagter 490, Article 11, Section
40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Tax Increment Financing Act" or "TIF Act"),
to assist in financing public costs related to a project.
Subsection 3. Statement of Objectives. 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 District is being created to facilitate a 38 unit owner
occupied townhome development and a 114 unit rental apartment
facility. 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 Housina for Saint Paul 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 Redevelo� Underused Propertv.
The Tax Increment District is a site that has been
underutilized for many years. The majority of the area comgrising
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
below 30% of the area median income and 23 units will be
1183029,2
da-�3�
affordable to households at or below 50°s of the area median
income. 23 of the owner-occupied units will be affordable to
households between 8�a 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.
St is expected that the taxable markeC value of parcels in
the Tax Increment District will increase by approximately
$21,280,000.
The acCivities contemplated in the Redevelopment Plan and
this Tax increment Financing Plan do not preclude the undertaking
of 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. Redevelopment Plan Overview.
2
Property to be Acquired - Selected property located
within Tax Increment Financing District or
Redevelopment Project Area may be acquired by the HRA.
Relocation � if necessary, complete relocation services
are available pursuant to Minnesota Statutes, Chapter
117 and other relevant state and federal laws.
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 HRA 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 District No. 1. The following parcels located in the
City of Saint Paul, Ramsey County, Minnesota:
PIN NO.
312922440028
312922440029
ADDRESS
221 7 Street East
440 Sibley Street
1183029.2 2
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FURTHER I23FORMATION REGARDING THE IDENTIrICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT N0. 1 CAN BE
OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA•
Subsection 6. Parcel in Accruisition. The IiRA may finance
all or a part o£ the cos�s 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 ARA 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 wi11 be undertaken only when there is
assurance of funding to finance the acquisition and
related costs.
Subsection 7.
Kinanciu L������� �.... _.._ •.----- - —
The following contracts have been or will be entered into by the
HRA and the gersons named below:
No development agreements have been entered into at
this time. However, the HRA anticipates entering into
a flevelopment agreement with an entity to be formed by
George Sherman Associates and the Louder 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 Soecific Development Exoected to Occur
within Redevelooment Area.
Although no specific additional developments have
identified at this time, the HRA expects that the
acquisition and construction of the above housing
development will encourage additional development
the Redevelopment Project Area.
been
in
SubsecCion 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, Chis 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:
1183029.2
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Uaes of Funds
Land Acquisition
Site Preparation
Parking
Interest Costs
Administrative Costs
TOTAL
Rental
335,000
1,600,000
Owner
AccLuired
115,000
150,000
950,000
Total
$ 450,000
150,000
2,550,000
5,500,000
970.000
$9,625,000
Estimated costs associated with Tax Increment Financing District
are subject to change. The cost of a11 activities to be
considered for tax increment financing will not exceed, without
formal modification, the budget above pursuant to the applicable
statutory requirements.
Subsection 10. Estimated Amount of Bonded Indebtedness. No
bonded indebtedness is anticipated to be issued. The
expenditures authorized by this Tax Increment Financing Plan will
be paid for on a pay-as-you-go basis.
Subsection 11. Sources of Revenue. Land acquisition,
demolition, and other costs outlined in Section 9 above under the
Estimated Cost of Project will be financed through the annual
collection of tax increments as described below. The total cost
of the 114 rental apartment facility are estimated to be
approximately $17,000,000. The total cost of the 38 unit owner
occupied townhome development is estimated to be approximately
$9,500,000.
The sources of revenue for these costs include a star loan
from the City or HRA federal HOME funds, together totaling
approximately $1,000,000, grants or loans from the Metropolitan
Council of approximately $900,000, and assistance from the
Minnesota Housing Financing Agency of approximately $1,300,000.
The Developer will contribute equity or obtain private financing
for the remaining cost of the housing developments.
Subsection 12. Estimated Captured Tax Capacitv and Estimate
of Tax Increment. The most recent tax capacity of Tax Increment
Financing District is estimated to be $10,577 as of January 2,
1999.
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. 1. The
1183029.2
00 -�31
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 detexmined that the proposed
development of the Tax Tncrement DistricC would not reasonably be
expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value
of 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 the district
permitted by the plan.
SubseCtion 14. Duration of 7'ax lncremenL r���a��c.:��,u ,��������.
The duration of Tax Increment Financing District will be 25 years
from the receigt 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 Utner �i�axin �urisa�c-
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 o£ tax inCrement
financing, the impact is $0 to other entities. Notwithstanding
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 Che 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:
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Subsection 17. M odification of Tax lncremenc rinanc�nv
District andlor Tax Increment Rinancina Plan. As of August 9,
2000, no modifications to Tax Increment Financing District No. 1
or the Tax Increment Financing Plan therefore have been made.
Subsection 18.
In accordance with Minnesota Statutes, Section 469. 175,
Subd. 4, any:
1. reduction or enl.argement of the geographic area of the
Tax Increment Financing District;
2. increase in amount of bonded indebtedness to be
incurred, including a determination to capitalize
interest on debt if that determination 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
aapacity 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 the original
plan.
The geographic area of District may be reduced, but sha11 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
parcel(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 net 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 t� capacity of the
parcel(s) eliminated from the Tax Increment Financing District.
The ARA must notify the County Auditor of any modification that
reduces or enlarges the geographic area of the Tax Increment
Financing District or the Redevelopment Project Area.
Modifications to Tax Increment Financing District in the �orm of
a budget modification or an expansion of the boundaries will be
recorded in the Tax InCrement Financing Plan.
1183029.2
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Subsection 19. Administrative Expenses.
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 locaCed in the district;
or
3. amounts used to pay interest on, fund a reserve for, os
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
planning 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 percent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures, whichever is less.
Pursuant to Minne5ota 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
triose expenses by February 15 of the year following the year the
expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 1.77, Subd. il,
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 Eor the Tax
Increment Financing District after three (3) years from the date
of certification of the Original Net Tax Capacity value of the
taxable property in the Tax Increment Financing District by the
County Auditor unless within the three (3) year period:
1183029.2 1�
ao -�3�
(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 District, 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 payment of bonds and
interest thereon may be discharged and may be ternlinated 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 installation of utility service
including sewer or water systems, has been commenced on
a parcel located within a tax increment £inancing
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 sha11
be excluded from the original net tax capacity of the
tax increment financing district. If the authority or
the owner of the parcel subsequently oommences
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 of 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.
1153029.2 1�-
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Financing District and found no parcels for which building
permits 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 o£ 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, subjec� 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. Recruirements for Agreements with the
Developer.
The HRA will review any proposal for private development to
determine its conformance with Che 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
cleemed necessary by the 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 HRA as a result of 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 property acquired and
which provides recourse for the HRA should the development or
redevelopment not be completed.
1183029.2 �"3
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Subsection 25. Other Limitations on the Use of Tax
Increment.
l. General Limitations. A11 revenue derived from tax
increment shall 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 469.124 to 469.134;
These revenues shall not be used to circumvent existing
levy limit law_ No revenues derived from 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. Pooling Limitations. At least 80 percent of tax
increments from the Tax Increment Financing District
must be expended on activities in the Tax Tncrement
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 otherwise, 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 be treated as if they were solely for activities
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 sixCh year following certification
of the Tax Increment Financing DisCrict, 80 percent of
said tax increments that remain aftier expenditures
permitted under said five year rule must be used only
to pay previously commitment expenditures or credit
1183029.2 �.�
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enhanced bonds as more fully set forth in Minnesota
Statutes, Section 469.1763, Subd. 5.
Subsection 26. Count� Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la,
the county board may require the ARA to pay for all or part of
the cost of county road improvements i£, the proposed development
to be assisted by tax increment will, in the judgement o£ the
county, substantially increase the use of county roads requiring
construction of road improvements 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 ARA 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 FTRA 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
assignecl to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in
�he assessment agreement appear, in the judgment of the assessor,
to be a reasonable estimate, the assessor may certify the minimum
market value agreement.
Subsection 28. Administration of the Tax Increment Financina
District
Administration of the Tax Increment Financing DistriCt will
be handled by the Executive Director of the HRA.
Subsection 29. Financial ReportincZ Req_uirements.
The HRA will comply with all reporting requirements of
Minnesota Statutes, SeCtion 469.175, Subd. 5, 6 and 6a.
1183029.2 �-5
EXHIBTT A
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Assum tions Re ort
City of St. Paut, Minnesota
Proposed Tax increment (Redevelopment) Financing District
North Quadrant (Sibley Park) Housing Development
Scenario A- Phase One Total Project (26 years, 8% note)
Type of Tax tncrement Financing District
Maximum Duration of TIF District
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: First 30 0.00%
Excess 0.00%
Original Net Tax Capacity (1)
�2,683,500 575,749,244 515,749,244 $15,749,244
Assessment/Collection Year
Base Estimated Market Value
Increase in Estimated Market Value (1)
Total Estimated Market Value
Times: First
Excess
Total Net Tax Capacity (1)
Base Inflation Factor
Locat Tax Capacity Rate
Fiscal Disparities Co�trlbution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooting Percent
City Tax Rate (Only if Local-Effort TIF)
Bonds
Bonds Dated
Firstlnterest Date
Underwriters Discount
$265,389
2001/2002 2002/2003 2003/2004 2004/2005
00-'13 �
$683,500 $683,500 5683,500 $683,500
2,000,000 15,065,744 15,065,744 15,065,744
NA
NA
NA
LGA/HACA Loss:
Will Annual Locai Contribution Be Made (Yes or No)? (2)
I.S.D #625 Equatized Tax Capacity Aate
I.S.D #625 Sales Ratio
City Saies Ratio & Taxable Net Tax Capacity
Present Value Date & Rate
Yes
NA
NA
NA
09/01/00
NA
5.00°/,
(1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be available for debt service.
Prepared by: Springsted Incorporated (printed on 06128l20�0 at 321 PM)
SO 0.00%
0.00%
Ftedeve4opment
25 years from 7st incremeni
09/07/00
12/Ot/27 (26 Years of Increment)
2000/2001
S683,500
0
0
$10,577
0 0 0 0
0 0 0 0
$41,527
5265,389 $265,389
NA
148.553%, (Payable 2000)
0,0000°10 (NA for Housing)
10.00%
0.00%,
NA
Note (Pav-As•You-Go)
Note Dated 09l05f00
Note Rate 8.00%
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Pro ected Pa -AS-YOU-Go Note fle rt
City of St Paul, Minnesota
Proposetl Tax Incr<ment (ReEeveiopment) Fnanring Oistrict
North Ouatlrant (Sibley Park) Housing Developmen[
Scenario A- Phase One Toial Project (26 years, 8%notej
Note Date: 09/Ot/OD
Nde Ra[¢: 800%
PmounF. 53p5<,300
Semi-Mnual Loan
Net CapitaGxed Batance
Dale Principal Interest P&I Rev�ue IntereA Ovlstantlin9
(i) (2) (3) (4) (51 (61 R)
0901/Dt 0.00 000 O.CO 0.00 101,8ID.00
OB101101 000 0.00 0.00 0.00 1262a4.a0
02/01/02 0.00 0.00 0.00 O.Op 131,236.18
08�01/02 0.00 20.638.0p 20.638.00 20.638.00 115.90].94
0?J01/03 6.00 20.6300p 20.638.00 20.638.00 120.54b26
OB/Ot/03 23.9089� 146.004.03 169,913.00 169.91300 000
0?1OVO4 23,865.33 145,Od1.6] 169.913.00 169.9t300 0.00
0&Otl04 25,fl59.94 t46.053.OG }{9,913.00 169.913.00 090
02/01/OS 26.896.34 163,01866 169,9130p 169.91300 0.00
O6N1/OS D.9]0.1/ 141.96289 169.913.00 169.91300 000
0?/Ot/O6 29.08892 140.ffi4.08 169.913.W 169.913W O.W
08/Ot/O6 30,25267 139.660.53 169,913.00 169.913_00 0.00
02/01/0] 31,d62.5] 138.dW.d3 169,91300 169.913.00 000
08�01/01 32.)21.0] 13].19L93 169,913.00 169.91300 000
02/Ot/08 34,029.92 135,883.08 169,913.00 169.91300 0.00
OBl6tfOB 35,391 tt 1�a,521.e9 /69.913.00 169.9t3.00 000
02/01/09 36,BW16 133,10624 t69.91300 169.91300 0.00
OB/Ot/09 38,299.03 131.6339] 169.913C0 169.91300 0.00
0?I�1/1Q 39.BIOA9 130.t�281 t69.913.a0 169,9t3.00 OCO
08/Ot/iD a1,a02.60 128.510.40 169,913.00 169.913.00 000
02/01/i1 43,OSB]0 126.854.30 169,913.00 169.913.00 000
OB/Ot/1/ 40,]S1A5 125.13195 169.913.00 169,91300 0.00
01101/12 46.5]2.29 123.3a0�1 169.91300 169.913.00 000
08101/12 A8,a35.18 12t,4T).82 169,913.00 169.913.00 000
02/Ot/13 50.3]2.59 119.54041 169.91300 169.913.00 0.00
OB/Oi/13 52.38Z49 117.52551 169.91300 169.91300 0.00
02/Olft6 56,6g2.99 115.62001 169.913.00 169,913.00 0.00
OB/01Ad 56.662.31 it3250.69 169.913.00 169,913.00 0.00
02/OtAS 58,928.Bt 110.984.19 169.913.00 169,9/3.00 0.00
OB/Ot/15 61,2g$.95 108,62P.�4 169.913,W 169.913.0� 000
02/OVi6 63,]37.40 106J]5.60 169.913.00 169,913.00 0.00
OB/Ot)16 66,286.89 103.626.11 169.913.00 169,913.00 0.00
02/01/t7 fi8.938.3] 100,974.63 169,913.00 169,913.00 0.00
OB/01/t7 ]1,695.90 98,21].f0 1fi9.9/3.00 769,91300 0.00
0?lOi/t8 ]b,563.]d 95,3a926 t69.91300 169,913.00 O.OD
Ofl/Ot/18 7/,SC629 92,36671 169,913.00 169,913.00 0.00
02/Oi/19 80,648,id 89,264.86 169,913.90 )69,913.00 0.00
06�01119 B3.B16.09 86.038.93 t69,9/3.00 169.9t3.00 0.00
02/01/20 8].229.03 82,683.97 169,913.00 169,913.00 0.00
OB/01/ZO 90.]18.f9 79,19d.8/ 169,913.00 169.913.00 0.00
�2/Ot(21 94.346.92 ]5.565.08 169.91300 169.913.00 � 0.00
08/01@1 98.120.]9 ]1.79221 169.913.00 169.9/3.00 0.00
02/Ot/22 102.04563 67,86Z3� 169,913.00 169,913.00 0.00
08/OV22 106.12].45 63,785.55 169,913.W 169,913.�0 O.W
02/Ol/23 110,3]2.55 59.540.45 169,913.00 169.913.00 0.00
08�OV23 118,]87.b5 55,125.55 189,81300 1W,913.00 000
02/01/24 119,3]8.95 50,534A5 169,913.00 169,913.00 0.00
0&01/24 124.i54.N 45J58.89 169.913.00 169.9t3.00 0.00
02/01/25 129.12027 6D.]92.]3 169.913.00 I&9.913.00 0.00
OB/Ot/25 734.2&5.08 35.62].92 169.913.00 769.973.00 0.00
02/Ot/26 139,656.49 30256.51 169,913.0� 169,913.00 0.00
OflNt(26 1a5.242.)5 24.87025 169.9t3.00 /69.913.00 0.00
0?JOl/2] 151,052.66 18,H60.56 169,91300 169,913.00 0.00
OH/Ol@7 15].094.55 12,81B65 169,913.00 169.9/3.00 0.00
02lOtl28 163.366.6t 6,534.66 769.90127 159.901.27 0.00
09/Ol/28 0_00 0.00 0.00 0.00 0.00
OY01/29 000 0.00 0.00 0.00 0.00
33.650.107 Sa.886,81&49 58.536.97d.9 58.536.91427 5595.800.]8
Excess Tax Increment 11.]3
TotalNe[Revenue 58,536,926.00
3.054.300.00
3,156,110.00
3,282,354.d0
3,a13,6aB.58
3.529,556.52
3.650,100.]8
3,626,191.81
3.601.326 de
3.575,465.54
3,560,5)220
3,520,602.09
3,49t,513II
3,d61.260 70
3,429,]98.13
3.39].O1J.06
3.363,04].14
3,321,65603
3,290.8692]
3,252,5)024
3.2t2.1f0.05
3.1]y35].45
3,128,298.�5
3,OB3,51 T 90
3.036,9a5.dt
2.988.510.23
2.938,13P.64
Z.B85,�50 15
2.831.261.16
2.]]A,604.85
2.]15,61604
2,654.390 OB
2,590,652.68
2.52a.365.19
2,d55.d21.a2
2,383,731.52
2.309.16].]8
2,231,621.d9
2,150,973.35
2.06].O�J32H
1.9�9.8�a25
1.889,752.06
1.794.805.1<
1.696.68d.35
1.59a,638.]2
1.488.511.21
f.3]8.13&�2
1.263.3512]
1.143.972.32
1.019.81821
890.69].94
]56.412.86
616,]56.3]
d1t,513.62
320.d61.i6
1W.3fi6.61
0.00
O.aO
0 00
Preper¢d py:5pringsletl InmrporateC (pnntetl o� 06/2fl@000 at 322 PM) Lf062Ba.zls
Market Value Analysis Report
City of St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrent (Sibley Park) Housing Deveiopment
Scenario A- Phase One Totai Project (26 years, 8%a note)
Assumptions
Present Value Date
P.V. Rate - Gross T.I.
Increase in EMV With TIF District
Less: P.V of Gross Tax increment
Subtotal
Less: Increase in EMV Without 71F
Difference
1
2
3
4
5
6
7
8
9
70
1i
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
09/Ot/00
8.00%
$15,065,�44
3,481,295
$11,584,449
0
$17,584,449
Annual Present
GrossTax Va{ue@
Year Increment 8.00%a
2002 45,977 39,166
2003 378,531 298,569
2004 378,531 276,453
2005 378,531 255,975
2006 378,531 237,074
2007 378,531 219,457
2008 378,531 203,201
2009 378,531 188,149
2010 378,531 174,212
2017 378,531 161,308
2012 378,531 149,359
2013 378,53t 135,295
2014 378,531 128,057
2015 378,531 118,566
2076 378,531 109,783
2017 378,531 10�,651
2016 378,531 94,121
2079 378,531 87,149
2020 378,537 80,694
2021 378,531 74,717
2022 378,531 69,782
2023 378,535 64,057
2024 378,53t 59,312
2025 378,531 54,919
2026 378,531 50,851
2027 378,531 47,084
$9,509,252 $3,481,295
00 -�31
Prepared by: Springsted incorporated (06/28/2000}
Council File # C� + 7 3,
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ORIGINAL
Presented By
Referred To
R05olUtiOn #
Green Sheet # �D,�n��
BE IT RESOLVED by the City Council of the City of Saint
Paul, Minnesota (the "City") as follows:
Section 1. Recitals.
1.01 On June 23, 1999, the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "Authority")
established the North Quadrant Redevelopment Project Area (the
"Redevelopment Project Area") and adopted a redevelopment plan
therefor (the "Redevelopment Plan��).
1.02 The Authority has asked the City Council to approve the
creation, within the Redevelopment Project Area, of Tax Increment
Financing District No. 1(North Quadrant) (the "Tax Increment
District") and the adoption oE a Tax Increment Financing Plan
therefor, all pursuant to and in accordance with Minnesota
Statutes, Section 469.174 through 469.179 (the "Tax Increment
Act") and Laws of Minnesota 2000, Chapter 490, Article 11,
5ection 40 (the "Special Law").
1.03 The Authority has performed all actions required by law
to be performed prior to the creation of the Tax Increment
District and adoption of a Tax Increment Plan therefor,
including, but not la.mited to, notificaCion of Ramsey County and
Independent School District Number 625, which have taxing
jurisdiction over the property to be included in the Tax
Increment District, and has requested that the City approve the
adoption of the Tax Increment Financing Plan and the creation of
the Tax Increment District £ollowing the holding of a public
hearing upon published and mailed notice as required by law.
2.01 The City Cpuncil hereby finds that the creation of Tax
Increment FinanCing District No. 1(NOrth Quadrant) and adoption
of a Tax Increment Plan therefor, are intended and, in the
judgment oE the City Counci.l, its effect will be, to carry ouC
the objectives of the Redevelopment Plan and to create an impetus
for the construction in the City of affordable and mixed income
housing, will increase employment and otherwise promote certain
public gurposes and accomplish certain objecCives as specified in
the Redevelopment Plan and Tax Increment Financing Plan.
1142957.1
' RESOLUTION APPROVING THE
THE CREATION OF TAX INCREMENT FINANCING DISTRICT
NO. 1(NORTH QUADRANI'), AND THE ADOPTION OF A
TAX INCREMENT FTNANCING PLAN THEREFOR
p _�131
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2.02 The City Council hereby finds that Tax Increment
Financing District No. 1(North Quadrant) qualifies as an
"housing district" within the meaning of the Tax Increment Act
and the Special Law Por the following reasons:
The property to be included in the Tax Increment
District is located in the Northeast quadrant of
the City, i_e. within the 15 acre site bounded by
Interstate 94 on the north and east, Jackson
Street on the west and Seventh Street on the
south, together with the west side o£ Jackson
Street to midblock between Interstate 94 and South
Street.
'I}aenty percent of the housing units the Tax
Increment District will 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 will 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
Tax Increment District will not be subject to any
income limitations.
Family income means the median gross income for
the City as determined under section 42 of the
Internal Revenue Code of 1986, as amended. The
income requirements will 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
will initially be purchased and occupied by
individuals whose family inoome satisfies the
income requirements. For residential rental
property, the income requirements apply for the
duration of the Tax InCrement District.
The fair market value of the improvements which
are constructed in the T� Increment District for
commercial uses or for uses other than owner-
occupied and rental mixed-income housing will not
consist 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 wi11 be determined using
the cost of construction, capitalized income, or
other appropriate method of estimating market
value.
2.03 The City Council hereby makes the following findings:
1192957.1
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(a) The City Council further finds that the
proposed development, in the opinion of the City
Council, would not occur solely through private
investment within the reasonably foreseeahle future
and, Cherefore, the use of tax increment financing is
deemed necessazy_ The specific basis for such finding
being:
The parcels on which the development will
occur would not be developed in the
reasonably foreseeable future because they
are currently used for surface parking, which
use generates significant income to the
current owner of the property considering the
owner�s minimal investment in the property.
(b) The City Council further finds that the Tax
Increment Financing Plan conforms to the general plan
for the development or redevelopment of the City as a
whole. The specific basis for such finding being:
The Tax Increment Financing Plan will generally
compliment and serve to implement policies adopted
in the City's comprehensive plan. The development
contemplated is in accordance with the existing
zoning for the property.
(c) The City Council further finds that the Tax
Tncrement Financing Plan will afford maximum
opportunity consistent with the sound needs of the City
as a whole for the development of the Tax Increment
District by private enterprise. The specific basis for
such finding being:
The proposed development to occur within the Tax
Increment District is housing. The development
will increase needed affordable and mixed income
housing in the City and will increase the market
valuation of the City.
(fl) For purposes of compliance with Minnesota
Statutes, Section 469.175, Subdivision 3(2), the City
Council hereby finds that the increased market value of the
property to be developed within the Tax Increment District
that could reasonably be expected to occur without the use
of tax increment financing is $-0- , which is less than the
market value estimated to result from the proposed
development (i.e., $15,065,744) after Subtracting the
present value of the projected tax increments for the
maximum duration of the Tax Increment District (i.e.,
$3,481,295). In making these findings, the City Council has
noted that the property has been undeveloped for many years
1192957.1
ORIG4NAL
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and would likely remain so if tax increment financing is not
available. Thus, the use of tax increment financing will be
a positive net gain to the City, the School District, and
the County, and the tax increment assistance does not exceed
the benefit which will be derived therefrom.
2.04 The provisions of this Section 2 are hereby incor-
porated by reference into and made a gart of the Tax Increment
Financing Plan.
Section 3. Creation of Tax Increment Financing District No.
1(North Ouadrant) and the Tax Increment Financina Plan therefor.
3.01 The creation of Tax Increment Financing District No. 1
(North Quadrant) is hereby approved and the Tax Increment
Financing Plan therefor is hereby adopted.
3.02 The sta£f of the City, the staff of the Authority and
the City's and Authority's advisors and legal counsel are
authorized and directed to proceed with the implementation of the
Tax Increment District and the Tax Increment Financing Plan and
for this purpose to negotiate, draft, prepare and present to the
Board of Commissioners of the Authority for its consideration all
further plans, resolutions, documents and contracts necessary £or
this purpose.
Adopted by Council: Date �O�
l
Adoption Certified y Council Secretary
HY: � �—
Approved by Mayor: Date � LB(y�D
sy:
Reguested by Department of:
Plannina & Economic Develonment
�
By: `�/
t'�
Form Approved by City Attorney
I
�% �� / �,
Approved by Mayor for Submission to Council
B 1 �`r�"'�
DEPARTMENt/OFFICE/COUNCIL: DATE INITIATED GREEN SHEET No.: 101691
PED 7/28/00 0 0-7 3�
CONTACI PERSON & PHONE: - INmnLmA'es miTlnunAiE
ALLEN CARLSON 6-6616 � y DEPARI'MENT DIR s ct�
covxca.
M[JSI BE ON COUNCII, AGENDA BY (DATE) �G� 3 CITY ATTORNEY �I CITY CLERK
All�iLSY 9, ZOOO FOR FINANCIAL SERV DII2. _ FAIANCIAL S V/ACCTG
ROUTING 4 MAYOR (OR ASST.) 1�A�S�A� �
PUBLIC HEARING ORDER coc.�nssiox
TOTAL # OF S[GNA7'URE PAGES _I (CLIP ALL LOCATIONS FOR SIGNATURE)
acriox xEQuESrEV: . Public hearing to approve T� Increment Financing Disfrict No. 1(North Quadrant)
RECOMIv]ENDATI013S: Approve (A) or Reject (R) PERSONA[. SERViCE CON7'RAC1S M[7ST ANSWER TI�E FOLLOWRVG
QUESTIONS:
PLANNING COA9vIISSION 1. Has this personiSrm ever workeA undet a conhact for this depaztmenY?
CIB COM��IITTF.E Yes No
CIVII. SERVICE COMMISSION 2. Has this person/fum ever been a city employee?
Yes No
3. Does this person/fimi possess a skill not noanal7y possessed by any current city employee?
Yes No
Explain aIl yes answers on separate sheet and attach to green sheet
INI17A1'ING PROBLEM, ISS[IE, OPPORT[7N11'Y (WLo, What, When, Where, Why):
Creation of t� increment financing and street on block bounded by 7th, 8th Wacouta and Sibley streets will a11ow
fmancial assistance to construction of ll4 rental units of which 46 are affordable, 38 for sale town homes and
13,000 sq. ft. of commercial.
ADVANTAGES IF APPROVED�
This project is part of North Quadrant Redevelopment Plan to create urban village in North Quadrant of downtown
St. Paul.
DISADVANTAGESIFAPPROVED:
DISADVANI'AGES IF NOT APPROVED:
Project will not proceed forwazd.
TOTAL AAiOUNT OF'fRANSACI'iON: $ COSTlREVENUE BUDGETED:
FL7NDING SOURCE: ACTIVTTY NUMBER:
FIlVANCL4L INF012MATION: (EXPLAIN) A �„ps��rct� Cerfe�
��
��P�YS2�Sha.ed�KAPLANt.�^%��frm
po ��71
Interdepartmental Memorandum
CITY OF SAIN'I' PAUL
TO: Council President Bostrom
Councilmember Benanau
Councilmember Blakey
Councilmember Coleman
Councilmember Harris
Councilmember Lantry
Councilmember Reiter
FROM: Brian Sweeney
Allen Cazlson
DATE: 7uly 28, 200�
RE: PUBLIC FIEARING: RESOLUTION ESTABLISffiNG TAX INCREMENT
FINANCING DISTRICT NO.1(NORTH QUADRANT) AND ADOPTING
THE RELATED TAX INCREMENT FINANCING PLAN
Purpose
The purpose of this public hearing is to receive public comment and request the City Council to
approve a resolution which establishes TaY Increment Financing District No. 1(North Quadrant)
which is bounded by 7`", 8�' , Wacouta and Sibley Streets. Adoption of the Tax Increment
District will allow increments to be generated to assist in the fmancing of a proposed 114
multifamily rental building with 13,000 square feet of commercial space and a 38 unit for sale
town home development. Twenty-two percent of the rental units will be affordable to
households at or 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,
BackgroundlProposal
The North Quadrant Redevelopment Project Area is on the immediate edge of the core of
downtown Saint Paul and is generally bounded by Highway I-94, Jackson Street and East 7th
Street. The area is currently characterized by underutilized buildings and large surface parking
Page 1 of 7
aa���1
lots although there aze positive assets such as the First Baptist Church, St. Mary's Catholic
Church, as well as an assortment of smaller viable businesses. In June of 1999, the City Council
adopted the North Quadrant Redevelopment Plan wluch set development objec6ves and urban
design guidelines for the azea. A major component of the plan was to foster an 3ncrease in the
residential population of downtown including increased opporiunities for affordable housing in
accordance with the Saint Paul Housing Plan.
Sherman and Associates specializes in the design, construction and financing of rental and
ownership housing in Minnesota, North and South Dakota and Wisconsin. They have developed
over 3,000 of single family and multifamily homes since 1978. The Lander Group is a full
service real estate development company known for high quality urban infill housing. On
December 22, 1999, the HI2A Boazd approved Resolution 99-12/22-11 granting the Developer
tentative developer designation with the task to finalize financing, prepaze plans and negotiate
terms and conditions of a development agreement.
Proposal
The Developer is proposing a two phase project beginning conshuction this fall on Block 31
adjacent to 7th Street. Phase Two would start in the suuuiier of 2001 on block 17. The
Developer's proposal(3.0 acres) constitutes approximately ten percent (10%) of the totalland
area of the North Quadrant Redevelopment Project Area . The multifamily rental units which
would be 4- 5 stories high would be located along 7th Street and Temperance Street. The 76
for-sale town homes would front along the new park on 8th and Sibley Street. Project I
construction will include a 114 unit multifamily L-shaped building with 13,000 square feet of
commerciaUretail space on the first floor fronting 7th Street and underground parking far entire
building. Project I will also include construction of 38 for-sale town homes.
Project II will be a mirror image of Project I except that rental component will have no
commercial space and 118 units. In order to accommodate Project II, Sibley Street will need to
be moved sixty feet to the East to aliow for a similaz size biock as Project I. The cost of moving
the Street, estnnated at $253,OOQ, will be funded with the Communities Livability Grant the City
was recenUy awarded by the Metropolitan Council.
The nronosed unit
20
>, mix and rents for the Project I multi:
Studio MktRate 780
32 1 BR
16 2BR
17 � 2BR (Sec 8)
8 � 3 Br (Sec 8)
I1 I 1BR
6 I 2 BR
Mkt Rate
Mkt Rate
30
30
50
50
Page 2 of 7
1,030
1,290
684
925
b16
738
rental buildine is as follows:
550
850
1,100
L,L00
1,300
850
1,100
00 -'1��
4 3 Br 5� 8i4 1,300
114
Project II will have an almost identical mix of unit types and afford ability. For Project I, 40%
of units wili be affordable pursuant to the Housing Action Plan's policy goals. Specifically, 22%
(25) of the units will be affordable to households at or below 30% of the azea median income and
18% (21) units wili have rents affordable to households at 50% of the azea median income. The
annual income of a two person household at 50% of the area median income is $26,300, whereas,
the income for a 4 person household at or below 30% of the area median income is $19,700.
The 38 Project I for sale units will range in size from 850 to 2,250 square and sale prices from
$119,000 to $345,000, thus being affordable to households between 80% and 140°/a of the azea
median income. The higher priced units will be two stories with separate ground floor access.
The upper two levels of the complex wiil have single level flats. Appro�mately, 60% of the
units will be affordable to households at or below 115% of the area median income.
The under ground parking structure will have a total of 143 spaces of which 88 spaces wi11 be
devoted to the rental units and 55 spaces will be devoted to the for sale units.
Proposed Financial Structure ofthe Project
Due to timing and limited City financial resources it is proposed that Project I and Project II be
fmanced separately and differently. The proposed means to finance the Project I rental
component is as follows:
Sources of Fmds Uses of Funds
FicstMortgage $7,125,000 LandSales $335,QQ0
Tae Increment Mortgage 1,945,000 Construction 12.008,000
ffi2A HOME Defe[red Mortgage 750,000 Parking Structure 1,600,000
II2A gcant 250,000 Professionffi Fees 451,60�
Met Council Defened Mortgage - 500,000 Soft Costs 165,800
Inclusionary
MHFA Deferred Mortgage - 70Q000 Construcfion Financing Costs 759,600
Employer Challenge
Family Housing Fund Deferred I50,000 Working Capital Reserve 151,400
Mortgage
Taac Credit Syndicated Equity 5,200,000 Operating Deficit Reserve 30Q000
Developer Letter of Credit 481,400 Developet Fee 1,30Q000
Total $17,1O1,A00 Total $17,1O1,A00
The $7,125,000 first mortgage loan to be repaid &om pro}ect revenues will be a 221(d}(4) HUD
insured note amortized over a 40 yeu term and interest rate of 8.5%. The tax increment
mortgage wall also be HUD insured with a amortized 25 year term, interest rate of 8.5% and
Page 3 of 7
Oo-��1
secured with a pay-as-you-go tax increment note provided by the City. The pay-as-you-go note
only pledges increments from the TIF district and places no obligation or debt upon the City or
HRA. The Metropolitan Council, Minnesota Housing Finance Agency and Family Housing
Fund have jointly awarded $1,350,000 of defened subordinate mortgage loan proceeds to Project
I. Forty percent of Phase One will have an eligible basis to syndicate low income housing tax
credits. The Developer will need approximately $522,000 of tax credits, which the City has
using the balance of its 2000 allocation and all of its yeaz 2001 allocation. The tax credit will
leverage approximately $5.2 million of syndicator equity to Project I covering 30% of the total
development cost. U.S. Bank is purchasing the credits at a premium of $0.92 on the dollar.
(Normal rate is about $0.81) The premium being paid by U.S. Bank enable the City to
successfully receive $700,000 under MHFA's Employer Challenge fund program (part of the
$1.35 million contribution). The Developer will be required to fund $481,000 towards a working
capital and operating deticit reserve fund, therefore the actually developer fee will be $819,000
which is lower than the $833,000 allowed pursuant to the developer fee resolution adopted by
the Board.
Despite the substantial financing resources secured so far for the rental building, the project is
still $1 million short of being fully funded. Staff is recommending the gap be filled with a
$750,000 loan from the federal HOME Program. The loan would be amortized over 30 year with
a 3% interest rate. In addition, staff is recommending a$250,000 grant from the HRA Enterprise
fund which would help to fulflll the City's local match requirement to use tax increment funds
for ProjectI.
The proposed financiug for the 38 for sale units of Project I is as follows:
Sources of Funds Uses of Funds
Snles Proceeds $7,672,000 Acquisition $ll5,000
T�x Increment Funds I,OOQ000 Underground Parking 950,000
MHFA/Met Council 900,000 Site work 150,000
Construction 5,625,000
Holding costs 575,000
ProfessionaVMarketing 671,000
ArchitecUEngineering 236,000
Contingency - 2% 200,000
Profit 1,050,000
Total $9,572,000 Total $9,572,000
The sales price points are based upon the style of units being constructed and estimates from the
Page 4 of 7
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M�eld Matket Study. Its estiruated that sales proceeds will cover approxiinately 80% of the
actually cost to construct the town homes. A major cost of Project I is the underground parking
shuchue. Basically, the tas increment provided to Project I is paying the cost of the parking.
The average per unit cost is $251,894 of which pazking constitutes $25,000 per unit. The
average sales price is $201,894, thus leaving a$SQ,OQO gap between sale proceeds and cost. The
City's portion to fill the gap is $26,315 per unit wluch is withiu established City policy. The
City's financing gap is recommended to be funded enfuely through tas increment funds in
which the Developer will sell a note provided by the City to an investor such as Fannie Mae or
U.S. Bank. The Developer will be encouraged to increase the sales prices as units aze sold. 5taff
has negotiated a 35% participation in the increased base sales price of any unit so1d. Should
sales prices increase during Project I, new base sales prices will be established for Project II
which will result in a lower tas increment participation on the part of the City.
Taa Increment Financing District
Due to the high cost of development including land acquisition and fmancing the proposed
improvements such as the underground parking for Project I, this project is feasible onip through
assistance, in part, from tax increment financing. The district would be bounded by 7�`, 8`�` ,
Wacouta and Sibley Streets. A copy of the Plan and project azea map is attached as E�ibit A.
The 2000 session of the Minnesota Legislature passed and the Governor signed a speciallaw for
the Northeast Quadrant that allows the creation of a TIF district for an owner and rental occupied
residenfial housing development for mixed income occupancy. Formerly, TIF district
regulations either appiied to rental or to ownership exclusively. Under the new law, only for the
North Quadrant, 60% of the units in the development must have income less than 115% of the
area median income and 2Q% of the units must be occupied by households at or below 50% of
the area median income. The balance of the units do not have income restrictions. Under prior
eYisting law 95°l0 of the ownership units had to be occupied by households at or below 115% of
the area median income. The new law provides much more flexibility in formulating
developments and stil] provides a high level of afford ability.
Public Purpose
Project I meets several of the objectives, strategies and operating principles of the Housing
Action Pdan 2000 as follows:
1. Support the production of ownership and rental housing in Saint Paul. Project I`s 152
uniis meet 20% of the goal to provide immediately 750 new housing units in the city.
The availability of rental housing, especially affordable rental housing is extremely low.
2. provides a diversity of building and unit types, rental and ownership.
3. Fosters economic integratian for both rentat and ownership units.
4. Subsidizes the provision of low income housing units in new housing developments.
5. Provides quality housing to create an ariracfive neighborhood and links naw development
to broader community objectives. Project I promotes "New Urbanism". It combines
mixed-use, mixed-income, transportation linkages and employment connections.
6. follows the principles of the Saint Paul on the Mississippi Development Framework.
Page 5 of 7
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Neighborhood Input
The CapitolRiver Council and its North Quadrant Advisory Committee have actively worked
with the Developer regazding the design and financing of Project I and II.
Findings of Fact to Support Adoption of Tax Increment Financing Bistrict No. 1(North
Quadrant)
The reasons and faets supporting the findings for adoption of the Tax Increment Financing
District I�3o. 1(North Quadrant) pursuant to MN Statutes, Section 469.175, Sub. 3, are as
foliows:
1. Finding tTzat the District is a°housing distr-ict. "
This Taac Increment District is in the public interest because it will provide needed
multifanuly housing Saint Paul of which at least 20% of the units will be affordable to
households at or below 50% of the azea median income. In fact the district will pzovide
affardable housing of which 40% will be affordable for rental housing and 60% of the
ownership units will be affordable pursuant to state definition of affordable ownership
housing.
2. Finding that the proposed deveZopment, zn the o�inion of the Council, would not
reasonably be expected to occur solely through private investment within the reasonably
for�eseeable�istac�-e and tluit the increased market value of the site that coutd reasonably
be expected to occur without the use of tc� increment fznancing would be Zess than the
increase in the market vatue estimated to result from the proposed development after
subtracting the present value of the projected tax inerements for the maxiTnum duratlon of
the district permitted by the plan.
Due to the high cost of development on the parcels including the cost of land acquisition
and financing the proposed improvements, this project is feasible only through assistance,
in part, from tax increment financing.
A comparative analysis of estimated mazket values both with and without establishment
of the Taac Increment Financing District No. 1(North Quadrant) and the use of tas
increments has been performed as described above. If all development which is proposed
to assist with t� increment were to occur in the proposed Project I, the total increased
market value would be up to $15,749,244. It is the Council's finding that no
development with a mazket value of greater than $15,744,244 would occur without ta�c
increment assistance in this district within 15 years. This finding is based upon evidence
from general past eaperience with the high cost of providing public improvements in the
general azea of this District.
Finding that the Tczz Increment Financing District No. 1(North Quadrant) conforms to
Page 6 of 7
a� -�a �
the general plan for the development or redevelopmenf of the municipality as a whole.
The Establishment of the Tas Increment Financing District No. 1(North Quadrant) for
the North Quadrant Development Project Area conforms to the City's Comprehensive
Plan and Saint Paul on the Mississippi Development Framewark .
4. Finding thar the Establishment of the Tax Zncrement Financing Dis£rict Na 1(Norih
Quadr�ant) far the North Quadrant Redevelopment ProjectArea will afford mazimum
opportunity, conszstent with the sound needs of the City as a whole, far the development
of the North Quadrant Redevelopment Project.
The number of housing units to be developed will increase the housing stock in the City
and the State of Minnesota.
Recommendation
Staff recommends and requests the City Council to consider adoption of the attached resolution
which approves and adopts the following:
Estabiishment of the Tax Increment Financing District No. 1(North Quadrant); and
The T� Increment Financing Plan to finance the Project.
Statement of the Council President
Being duly authorized by the City Council to conduct this Public Hearing, the hearing is now
open. This Public Heazing is calied for the proposed purpose to consider the following:
Estabiishment of the Tau Increment Financing Disttict No.l (North Quadrant); and
Approval of the TaY Increment Financing Plan.
Notice of tnne, place, and purpose of this hearing was published in the Saint Paul Legal Leger on
July 27, 2000. The affidavit of the publicafion of the Notice of Public Hearing will be made a
part of these proceedings.
Is there anyone who wishes to be heard on this item? If not, the Chair will declare this Public
Hearing adjourned.
Attachments
Tax Tncrement Financing District No. 1(North Quadrant)
Resolution approving TaY Increment Financing District No. 1(North Quadrant}
Page 7 of 7
�
00-'?3�
TAX INCREMENT FINANCING PL�1N
for the establishment of
TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRADTT)
(a housing district)
within the
NORTH QUADRAI3T REDEVELOPMENT PROJECT AREA
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUI3TY
STATE OF MINNESOTA
Adopted: August 9, 2000
This documenC was dra£ted by: SRIGGS AND MORGAN, (MNID)
Professional Association
2200 First 23ational Bank Bldg.
St. Paul, N3N 55101
(651) 223-6625
1193029.2
00 -73 �
TABLE OF CQNTENTS
(for reference purposes only)
TAX INCREMENT FINANCING P TAN
FOR TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRANT)
Pa4e
Subsection 1.
Subsection 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6
Subsection 7
Subsection 8
Subsection 9.
Subsection 10
Subsection 11
Subsection 12
Subsection 13
Subsection 14
Subsection 15
Subsection 16
Subsection 17
Subsection 18
Subsection
Subsection
Subsection
Subsection
19.
20.
21.
22.
8ubsection 23
Subsection 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
Einancing District No. 1 . . . . . . . .
Parcel in Acquisition . . . . . . . . . .
Development Activity in Tax Increment
FinanCing District 230. 1 for which
Contracts have been Signed . . . . . . .
Other Speci£ic 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 . . . . . . . . . . . . . . . .
ModiEications to Tax Increment Financing
Aistrict . . . . . . . • • • - • • • •
Administrative Expenses . . . . . . . .
Limitation of Increment . . . . . . . .
Use of Tax Increment . . . . . . . . .
Notification of Prior Planned
Improvements . . . . . . - . - • • • •
Excess Tax Increments . . . • • • • .
Requirements for Agreements with the
Developer . . . . . . . . . . . . . . .
OC.her Limitations on the L3se of Tax
Increment . . . . . . . . . . . . . . .
County Road Costs . . . . . . . . . . .
Assessment Agreements . . . . . . . . .
Administration of the Tax IncremenC
Einancing District . . . . . . . . .
Financial Reporting Requirements . . .
. 2
. 3
. 3
. 3
. 3
. 4
. 4
. 4
. 5
�
9
10
10
12
12
13
13
14
is
15
15
15
1183029.2
ao-73�
EXHISIT A- Map of Ta�c Sncrement District No. 1
EXHIBIT B- Map of 13orth Quadrant Redevelopment Project Area
EXHIBIT C- Projected Tax Increments
1183029.2
00-'131
TAX INCREMENT FINANCII3G PLAN FOR
TAX INCREMENT FINA23CING DISTRICT NO. 1(NORTH QUADRANT)
Subsection 1. Forward. The Aousing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "HRA"), and
iCs staff and consultants have prepared the following information
for the establishment of Tax Increment Financing District No. 1
(23orth 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. Statutorv Authoritv. There exist areas
within the City of Saint Paul (the "City") where public
involvement is necessary to cause devel.opment to occur. To this
end, the HRA has certain statutory powers pursuant to special
legislation (Laws of Minnesota, Chagter 490, Article 11, Section
40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Tax Increment Financing Act" or "TIF Act"),
to assist in financing public costs related to a project.
Subsection 3. Statement of Objectives. 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 District is being created to facilitate a 38 unit owner
occupied townhome development and a 114 unit rental apartment
facility. 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 Housina for Saint Paul 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 Redevelo� Underused Propertv.
The Tax Increment District is a site that has been
underutilized for many years. The majority of the area comgrising
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
below 30% of the area median income and 23 units will be
1183029,2
da-�3�
affordable to households at or below 50°s of the area median
income. 23 of the owner-occupied units will be affordable to
households between 8�a 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.
St is expected that the taxable markeC value of parcels in
the Tax Increment District will increase by approximately
$21,280,000.
The acCivities contemplated in the Redevelopment Plan and
this Tax increment Financing Plan do not preclude the undertaking
of 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. Redevelopment Plan Overview.
2
Property to be Acquired - Selected property located
within Tax Increment Financing District or
Redevelopment Project Area may be acquired by the HRA.
Relocation � if necessary, complete relocation services
are available pursuant to Minnesota Statutes, Chapter
117 and other relevant state and federal laws.
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 HRA 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 District No. 1. The following parcels located in the
City of Saint Paul, Ramsey County, Minnesota:
PIN NO.
312922440028
312922440029
ADDRESS
221 7 Street East
440 Sibley Street
1183029.2 2
OO -�31
FURTHER I23FORMATION REGARDING THE IDENTIrICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT N0. 1 CAN BE
OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA•
Subsection 6. Parcel in Accruisition. The IiRA may finance
all or a part o£ the cos�s 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 ARA 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 wi11 be undertaken only when there is
assurance of funding to finance the acquisition and
related costs.
Subsection 7.
Kinanciu L������� �.... _.._ •.----- - —
The following contracts have been or will be entered into by the
HRA and the gersons named below:
No development agreements have been entered into at
this time. However, the HRA anticipates entering into
a flevelopment agreement with an entity to be formed by
George Sherman Associates and the Louder 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 Soecific Development Exoected to Occur
within Redevelooment Area.
Although no specific additional developments have
identified at this time, the HRA expects that the
acquisition and construction of the above housing
development will encourage additional development
the Redevelopment Project Area.
been
in
SubsecCion 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, Chis 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:
1183029.2
00 -�31
Uaes of Funds
Land Acquisition
Site Preparation
Parking
Interest Costs
Administrative Costs
TOTAL
Rental
335,000
1,600,000
Owner
AccLuired
115,000
150,000
950,000
Total
$ 450,000
150,000
2,550,000
5,500,000
970.000
$9,625,000
Estimated costs associated with Tax Increment Financing District
are subject to change. The cost of a11 activities to be
considered for tax increment financing will not exceed, without
formal modification, the budget above pursuant to the applicable
statutory requirements.
Subsection 10. Estimated Amount of Bonded Indebtedness. No
bonded indebtedness is anticipated to be issued. The
expenditures authorized by this Tax Increment Financing Plan will
be paid for on a pay-as-you-go basis.
Subsection 11. Sources of Revenue. Land acquisition,
demolition, and other costs outlined in Section 9 above under the
Estimated Cost of Project will be financed through the annual
collection of tax increments as described below. The total cost
of the 114 rental apartment facility are estimated to be
approximately $17,000,000. The total cost of the 38 unit owner
occupied townhome development is estimated to be approximately
$9,500,000.
The sources of revenue for these costs include a star loan
from the City or HRA federal HOME funds, together totaling
approximately $1,000,000, grants or loans from the Metropolitan
Council of approximately $900,000, and assistance from the
Minnesota Housing Financing Agency of approximately $1,300,000.
The Developer will contribute equity or obtain private financing
for the remaining cost of the housing developments.
Subsection 12. Estimated Captured Tax Capacitv and Estimate
of Tax Increment. The most recent tax capacity of Tax Increment
Financing District is estimated to be $10,577 as of January 2,
1999.
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. 1. The
1183029.2
00 -�31
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 detexmined that the proposed
development of the Tax Tncrement DistricC would not reasonably be
expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value
of 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 the district
permitted by the plan.
SubseCtion 14. Duration of 7'ax lncremenL r���a��c.:��,u ,��������.
The duration of Tax Increment Financing District will be 25 years
from the receigt 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 Utner �i�axin �urisa�c-
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 o£ tax inCrement
financing, the impact is $0 to other entities. Notwithstanding
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 Che 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:
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Subsection 17. M odification of Tax lncremenc rinanc�nv
District andlor Tax Increment Rinancina Plan. As of August 9,
2000, no modifications to Tax Increment Financing District No. 1
or the Tax Increment Financing Plan therefore have been made.
Subsection 18.
In accordance with Minnesota Statutes, Section 469. 175,
Subd. 4, any:
1. reduction or enl.argement of the geographic area of the
Tax Increment Financing District;
2. increase in amount of bonded indebtedness to be
incurred, including a determination to capitalize
interest on debt if that determination 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
aapacity 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 the original
plan.
The geographic area of District may be reduced, but sha11 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
parcel(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 net 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 t� capacity of the
parcel(s) eliminated from the Tax Increment Financing District.
The ARA must notify the County Auditor of any modification that
reduces or enlarges the geographic area of the Tax Increment
Financing District or the Redevelopment Project Area.
Modifications to Tax Increment Financing District in the �orm of
a budget modification or an expansion of the boundaries will be
recorded in the Tax InCrement Financing Plan.
1183029.2
00 -731
Subsection 19. Administrative Expenses.
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 locaCed in the district;
or
3. amounts used to pay interest on, fund a reserve for, os
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
planning 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 percent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures, whichever is less.
Pursuant to Minne5ota 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
triose expenses by February 15 of the year following the year the
expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 1.77, Subd. il,
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 Eor the Tax
Increment Financing District after three (3) years from the date
of certification of the Original Net Tax Capacity value of the
taxable property in the Tax Increment Financing District by the
County Auditor unless within the three (3) year period:
1183029.2 1�
ao -�3�
(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 District, 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 payment of bonds and
interest thereon may be discharged and may be ternlinated 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 installation of utility service
including sewer or water systems, has been commenced on
a parcel located within a tax increment £inancing
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 sha11
be excluded from the original net tax capacity of the
tax increment financing district. If the authority or
the owner of the parcel subsequently oommences
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 of 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.
1153029.2 1�-
ao - �3�
Financing District and found no parcels for which building
permits 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 o£ 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, subjec� 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. Recruirements for Agreements with the
Developer.
The HRA will review any proposal for private development to
determine its conformance with Che 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
cleemed necessary by the 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 HRA as a result of 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 property acquired and
which provides recourse for the HRA should the development or
redevelopment not be completed.
1183029.2 �"3
00-�1�
Subsection 25. Other Limitations on the Use of Tax
Increment.
l. General Limitations. A11 revenue derived from tax
increment shall 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 469.124 to 469.134;
These revenues shall not be used to circumvent existing
levy limit law_ No revenues derived from 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. Pooling Limitations. At least 80 percent of tax
increments from the Tax Increment Financing District
must be expended on activities in the Tax Tncrement
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 otherwise, 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 be treated as if they were solely for activities
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 sixCh year following certification
of the Tax Increment Financing DisCrict, 80 percent of
said tax increments that remain aftier expenditures
permitted under said five year rule must be used only
to pay previously commitment expenditures or credit
1183029.2 �.�
oa-731
enhanced bonds as more fully set forth in Minnesota
Statutes, Section 469.1763, Subd. 5.
Subsection 26. Count� Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la,
the county board may require the ARA to pay for all or part of
the cost of county road improvements i£, the proposed development
to be assisted by tax increment will, in the judgement o£ the
county, substantially increase the use of county roads requiring
construction of road improvements 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 ARA 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 FTRA 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
assignecl to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in
�he assessment agreement appear, in the judgment of the assessor,
to be a reasonable estimate, the assessor may certify the minimum
market value agreement.
Subsection 28. Administration of the Tax Increment Financina
District
Administration of the Tax Increment Financing DistriCt will
be handled by the Executive Director of the HRA.
Subsection 29. Financial ReportincZ Req_uirements.
The HRA will comply with all reporting requirements of
Minnesota Statutes, SeCtion 469.175, Subd. 5, 6 and 6a.
1183029.2 �-5
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Assum tions Re ort
City of St. Paut, Minnesota
Proposed Tax increment (Redevelopment) Financing District
North Quadrant (Sibley Park) Housing Development
Scenario A- Phase One Total Project (26 years, 8% note)
Type of Tax tncrement Financing District
Maximum Duration of TIF District
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: First 30 0.00%
Excess 0.00%
Original Net Tax Capacity (1)
�2,683,500 575,749,244 515,749,244 $15,749,244
Assessment/Collection Year
Base Estimated Market Value
Increase in Estimated Market Value (1)
Total Estimated Market Value
Times: First
Excess
Total Net Tax Capacity (1)
Base Inflation Factor
Locat Tax Capacity Rate
Fiscal Disparities Co�trlbution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooting Percent
City Tax Rate (Only if Local-Effort TIF)
Bonds
Bonds Dated
Firstlnterest Date
Underwriters Discount
$265,389
2001/2002 2002/2003 2003/2004 2004/2005
00-'13 �
$683,500 $683,500 5683,500 $683,500
2,000,000 15,065,744 15,065,744 15,065,744
NA
NA
NA
LGA/HACA Loss:
Will Annual Locai Contribution Be Made (Yes or No)? (2)
I.S.D #625 Equatized Tax Capacity Aate
I.S.D #625 Sales Ratio
City Saies Ratio & Taxable Net Tax Capacity
Present Value Date & Rate
Yes
NA
NA
NA
09/01/00
NA
5.00°/,
(1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be available for debt service.
Prepared by: Springsted Incorporated (printed on 06128l20�0 at 321 PM)
SO 0.00%
0.00%
Ftedeve4opment
25 years from 7st incremeni
09/07/00
12/Ot/27 (26 Years of Increment)
2000/2001
S683,500
0
0
$10,577
0 0 0 0
0 0 0 0
$41,527
5265,389 $265,389
NA
148.553%, (Payable 2000)
0,0000°10 (NA for Housing)
10.00%
0.00%,
NA
Note (Pav-As•You-Go)
Note Dated 09l05f00
Note Rate 8.00%
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Pro ected Pa -AS-YOU-Go Note fle rt
City of St Paul, Minnesota
Proposetl Tax Incr<ment (ReEeveiopment) Fnanring Oistrict
North Ouatlrant (Sibley Park) Housing Developmen[
Scenario A- Phase One Toial Project (26 years, 8%notej
Note Date: 09/Ot/OD
Nde Ra[¢: 800%
PmounF. 53p5<,300
Semi-Mnual Loan
Net CapitaGxed Batance
Dale Principal Interest P&I Rev�ue IntereA Ovlstantlin9
(i) (2) (3) (4) (51 (61 R)
0901/Dt 0.00 000 O.CO 0.00 101,8ID.00
OB101101 000 0.00 0.00 0.00 1262a4.a0
02/01/02 0.00 0.00 0.00 O.Op 131,236.18
08�01/02 0.00 20.638.0p 20.638.00 20.638.00 115.90].94
0?J01/03 6.00 20.6300p 20.638.00 20.638.00 120.54b26
OB/Ot/03 23.9089� 146.004.03 169,913.00 169.91300 000
0?1OVO4 23,865.33 145,Od1.6] 169.913.00 169.9t300 0.00
0&Otl04 25,fl59.94 t46.053.OG }{9,913.00 169.913.00 090
02/01/OS 26.896.34 163,01866 169,9130p 169.91300 0.00
O6N1/OS D.9]0.1/ 141.96289 169.913.00 169.91300 000
0?/Ot/O6 29.08892 140.ffi4.08 169.913.W 169.913W O.W
08/Ot/O6 30,25267 139.660.53 169,913.00 169.913_00 0.00
02/01/0] 31,d62.5] 138.dW.d3 169,91300 169.913.00 000
08�01/01 32.)21.0] 13].19L93 169,913.00 169.91300 000
02/Ot/08 34,029.92 135,883.08 169,913.00 169.91300 0.00
OBl6tfOB 35,391 tt 1�a,521.e9 /69.913.00 169.9t3.00 000
02/01/09 36,BW16 133,10624 t69.91300 169.91300 0.00
OB/Ot/09 38,299.03 131.6339] 169.913C0 169.91300 0.00
0?I�1/1Q 39.BIOA9 130.t�281 t69.913.a0 169,9t3.00 OCO
08/Ot/iD a1,a02.60 128.510.40 169,913.00 169.913.00 000
02/01/i1 43,OSB]0 126.854.30 169,913.00 169.913.00 000
OB/Ot/1/ 40,]S1A5 125.13195 169.913.00 169,91300 0.00
01101/12 46.5]2.29 123.3a0�1 169.91300 169.913.00 000
08101/12 A8,a35.18 12t,4T).82 169,913.00 169.913.00 000
02/Ot/13 50.3]2.59 119.54041 169.91300 169.913.00 0.00
OB/Oi/13 52.38Z49 117.52551 169.91300 169.91300 0.00
02/Olft6 56,6g2.99 115.62001 169.913.00 169,913.00 0.00
OB/01Ad 56.662.31 it3250.69 169.913.00 169,913.00 0.00
02/OtAS 58,928.Bt 110.984.19 169.913.00 169,9/3.00 0.00
OB/Ot/15 61,2g$.95 108,62P.�4 169.913,W 169.913.0� 000
02/OVi6 63,]37.40 106J]5.60 169.913.00 169,913.00 0.00
OB/Ot)16 66,286.89 103.626.11 169.913.00 169,913.00 0.00
02/01/t7 fi8.938.3] 100,974.63 169,913.00 169,913.00 0.00
OB/01/t7 ]1,695.90 98,21].f0 1fi9.9/3.00 769,91300 0.00
0?lOi/t8 ]b,563.]d 95,3a926 t69.91300 169,913.00 O.OD
Ofl/Ot/18 7/,SC629 92,36671 169,913.00 169,913.00 0.00
02/Oi/19 80,648,id 89,264.86 169,913.90 )69,913.00 0.00
06�01119 B3.B16.09 86.038.93 t69,9/3.00 169.9t3.00 0.00
02/01/20 8].229.03 82,683.97 169,913.00 169,913.00 0.00
OB/01/ZO 90.]18.f9 79,19d.8/ 169,913.00 169.913.00 0.00
�2/Ot(21 94.346.92 ]5.565.08 169.91300 169.913.00 � 0.00
08/01@1 98.120.]9 ]1.79221 169.913.00 169.9/3.00 0.00
02/Ot/22 102.04563 67,86Z3� 169,913.00 169,913.00 0.00
08/OV22 106.12].45 63,785.55 169,913.W 169,913.�0 O.W
02/Ol/23 110,3]2.55 59.540.45 169,913.00 169.913.00 0.00
08�OV23 118,]87.b5 55,125.55 189,81300 1W,913.00 000
02/01/24 119,3]8.95 50,534A5 169,913.00 169,913.00 0.00
0&01/24 124.i54.N 45J58.89 169.913.00 169.9t3.00 0.00
02/01/25 129.12027 6D.]92.]3 169.913.00 I&9.913.00 0.00
OB/Ot/25 734.2&5.08 35.62].92 169.913.00 769.973.00 0.00
02/Ot/26 139,656.49 30256.51 169,913.0� 169,913.00 0.00
OflNt(26 1a5.242.)5 24.87025 169.9t3.00 /69.913.00 0.00
0?JOl/2] 151,052.66 18,H60.56 169,91300 169,913.00 0.00
OH/Ol@7 15].094.55 12,81B65 169,913.00 169.9/3.00 0.00
02lOtl28 163.366.6t 6,534.66 769.90127 159.901.27 0.00
09/Ol/28 0_00 0.00 0.00 0.00 0.00
OY01/29 000 0.00 0.00 0.00 0.00
33.650.107 Sa.886,81&49 58.536.97d.9 58.536.91427 5595.800.]8
Excess Tax Increment 11.]3
TotalNe[Revenue 58,536,926.00
3.054.300.00
3,156,110.00
3,282,354.d0
3,a13,6aB.58
3.529,556.52
3.650,100.]8
3,626,191.81
3.601.326 de
3.575,465.54
3,560,5)220
3,520,602.09
3,49t,513II
3,d61.260 70
3,429,]98.13
3.39].O1J.06
3.363,04].14
3,321,65603
3,290.8692]
3,252,5)024
3.2t2.1f0.05
3.1]y35].45
3,128,298.�5
3,OB3,51 T 90
3.036,9a5.dt
2.988.510.23
2.938,13P.64
Z.B85,�50 15
2.831.261.16
2.]]A,604.85
2.]15,61604
2,654.390 OB
2,590,652.68
2.52a.365.19
2,d55.d21.a2
2,383,731.52
2.309.16].]8
2,231,621.d9
2,150,973.35
2.06].O�J32H
1.9�9.8�a25
1.889,752.06
1.794.805.1<
1.696.68d.35
1.59a,638.]2
1.488.511.21
f.3]8.13&�2
1.263.3512]
1.143.972.32
1.019.81821
890.69].94
]56.412.86
616,]56.3]
d1t,513.62
320.d61.i6
1W.3fi6.61
0.00
O.aO
0 00
Preper¢d py:5pringsletl InmrporateC (pnntetl o� 06/2fl@000 at 322 PM) Lf062Ba.zls
Market Value Analysis Report
City of St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrent (Sibley Park) Housing Deveiopment
Scenario A- Phase One Totai Project (26 years, 8%a note)
Assumptions
Present Value Date
P.V. Rate - Gross T.I.
Increase in EMV With TIF District
Less: P.V of Gross Tax increment
Subtotal
Less: Increase in EMV Without 71F
Difference
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2
3
4
5
6
7
8
9
70
1i
12
13
14
15
16
17
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23
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25
26
09/Ot/00
8.00%
$15,065,�44
3,481,295
$11,584,449
0
$17,584,449
Annual Present
GrossTax Va{ue@
Year Increment 8.00%a
2002 45,977 39,166
2003 378,531 298,569
2004 378,531 276,453
2005 378,531 255,975
2006 378,531 237,074
2007 378,531 219,457
2008 378,531 203,201
2009 378,531 188,149
2010 378,531 174,212
2017 378,531 161,308
2012 378,531 149,359
2013 378,53t 135,295
2014 378,531 128,057
2015 378,531 118,566
2076 378,531 109,783
2017 378,531 10�,651
2016 378,531 94,121
2079 378,531 87,149
2020 378,537 80,694
2021 378,531 74,717
2022 378,531 69,782
2023 378,535 64,057
2024 378,53t 59,312
2025 378,531 54,919
2026 378,531 50,851
2027 378,531 47,084
$9,509,252 $3,481,295
00 -�31
Prepared by: Springsted incorporated (06/28/2000}
Council File # C� + 7 3,
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ORIGINAL
Presented By
Referred To
R05olUtiOn #
Green Sheet # �D,�n��
BE IT RESOLVED by the City Council of the City of Saint
Paul, Minnesota (the "City") as follows:
Section 1. Recitals.
1.01 On June 23, 1999, the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "Authority")
established the North Quadrant Redevelopment Project Area (the
"Redevelopment Project Area") and adopted a redevelopment plan
therefor (the "Redevelopment Plan��).
1.02 The Authority has asked the City Council to approve the
creation, within the Redevelopment Project Area, of Tax Increment
Financing District No. 1(North Quadrant) (the "Tax Increment
District") and the adoption oE a Tax Increment Financing Plan
therefor, all pursuant to and in accordance with Minnesota
Statutes, Section 469.174 through 469.179 (the "Tax Increment
Act") and Laws of Minnesota 2000, Chapter 490, Article 11,
5ection 40 (the "Special Law").
1.03 The Authority has performed all actions required by law
to be performed prior to the creation of the Tax Increment
District and adoption of a Tax Increment Plan therefor,
including, but not la.mited to, notificaCion of Ramsey County and
Independent School District Number 625, which have taxing
jurisdiction over the property to be included in the Tax
Increment District, and has requested that the City approve the
adoption of the Tax Increment Financing Plan and the creation of
the Tax Increment District £ollowing the holding of a public
hearing upon published and mailed notice as required by law.
2.01 The City Cpuncil hereby finds that the creation of Tax
Increment FinanCing District No. 1(NOrth Quadrant) and adoption
of a Tax Increment Plan therefor, are intended and, in the
judgment oE the City Counci.l, its effect will be, to carry ouC
the objectives of the Redevelopment Plan and to create an impetus
for the construction in the City of affordable and mixed income
housing, will increase employment and otherwise promote certain
public gurposes and accomplish certain objecCives as specified in
the Redevelopment Plan and Tax Increment Financing Plan.
1142957.1
' RESOLUTION APPROVING THE
THE CREATION OF TAX INCREMENT FINANCING DISTRICT
NO. 1(NORTH QUADRANI'), AND THE ADOPTION OF A
TAX INCREMENT FTNANCING PLAN THEREFOR
p _�131
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2.02 The City Council hereby finds that Tax Increment
Financing District No. 1(North Quadrant) qualifies as an
"housing district" within the meaning of the Tax Increment Act
and the Special Law Por the following reasons:
The property to be included in the Tax Increment
District is located in the Northeast quadrant of
the City, i_e. within the 15 acre site bounded by
Interstate 94 on the north and east, Jackson
Street on the west and Seventh Street on the
south, together with the west side o£ Jackson
Street to midblock between Interstate 94 and South
Street.
'I}aenty percent of the housing units the Tax
Increment District will 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 will 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
Tax Increment District will not be subject to any
income limitations.
Family income means the median gross income for
the City as determined under section 42 of the
Internal Revenue Code of 1986, as amended. The
income requirements will 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
will initially be purchased and occupied by
individuals whose family inoome satisfies the
income requirements. For residential rental
property, the income requirements apply for the
duration of the Tax InCrement District.
The fair market value of the improvements which
are constructed in the T� Increment District for
commercial uses or for uses other than owner-
occupied and rental mixed-income housing will not
consist 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 wi11 be determined using
the cost of construction, capitalized income, or
other appropriate method of estimating market
value.
2.03 The City Council hereby makes the following findings:
1192957.1
a � _ 731
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(a) The City Council further finds that the
proposed development, in the opinion of the City
Council, would not occur solely through private
investment within the reasonably foreseeahle future
and, Cherefore, the use of tax increment financing is
deemed necessazy_ The specific basis for such finding
being:
The parcels on which the development will
occur would not be developed in the
reasonably foreseeable future because they
are currently used for surface parking, which
use generates significant income to the
current owner of the property considering the
owner�s minimal investment in the property.
(b) The City Council further finds that the Tax
Increment Financing Plan conforms to the general plan
for the development or redevelopment of the City as a
whole. The specific basis for such finding being:
The Tax Increment Financing Plan will generally
compliment and serve to implement policies adopted
in the City's comprehensive plan. The development
contemplated is in accordance with the existing
zoning for the property.
(c) The City Council further finds that the Tax
Tncrement Financing Plan will afford maximum
opportunity consistent with the sound needs of the City
as a whole for the development of the Tax Increment
District by private enterprise. The specific basis for
such finding being:
The proposed development to occur within the Tax
Increment District is housing. The development
will increase needed affordable and mixed income
housing in the City and will increase the market
valuation of the City.
(fl) For purposes of compliance with Minnesota
Statutes, Section 469.175, Subdivision 3(2), the City
Council hereby finds that the increased market value of the
property to be developed within the Tax Increment District
that could reasonably be expected to occur without the use
of tax increment financing is $-0- , which is less than the
market value estimated to result from the proposed
development (i.e., $15,065,744) after Subtracting the
present value of the projected tax increments for the
maximum duration of the Tax Increment District (i.e.,
$3,481,295). In making these findings, the City Council has
noted that the property has been undeveloped for many years
1192957.1
ORIG4NAL
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a � ..'13�
and would likely remain so if tax increment financing is not
available. Thus, the use of tax increment financing will be
a positive net gain to the City, the School District, and
the County, and the tax increment assistance does not exceed
the benefit which will be derived therefrom.
2.04 The provisions of this Section 2 are hereby incor-
porated by reference into and made a gart of the Tax Increment
Financing Plan.
Section 3. Creation of Tax Increment Financing District No.
1(North Ouadrant) and the Tax Increment Financina Plan therefor.
3.01 The creation of Tax Increment Financing District No. 1
(North Quadrant) is hereby approved and the Tax Increment
Financing Plan therefor is hereby adopted.
3.02 The sta£f of the City, the staff of the Authority and
the City's and Authority's advisors and legal counsel are
authorized and directed to proceed with the implementation of the
Tax Increment District and the Tax Increment Financing Plan and
for this purpose to negotiate, draft, prepare and present to the
Board of Commissioners of the Authority for its consideration all
further plans, resolutions, documents and contracts necessary £or
this purpose.
Adopted by Council: Date �O�
l
Adoption Certified y Council Secretary
HY: � �—
Approved by Mayor: Date � LB(y�D
sy:
Reguested by Department of:
Plannina & Economic Develonment
�
By: `�/
t'�
Form Approved by City Attorney
I
�% �� / �,
Approved by Mayor for Submission to Council
B 1 �`r�"'�
DEPARTMENt/OFFICE/COUNCIL: DATE INITIATED GREEN SHEET No.: 101691
PED 7/28/00 0 0-7 3�
CONTACI PERSON & PHONE: - INmnLmA'es miTlnunAiE
ALLEN CARLSON 6-6616 � y DEPARI'MENT DIR s ct�
covxca.
M[JSI BE ON COUNCII, AGENDA BY (DATE) �G� 3 CITY ATTORNEY �I CITY CLERK
All�iLSY 9, ZOOO FOR FINANCIAL SERV DII2. _ FAIANCIAL S V/ACCTG
ROUTING 4 MAYOR (OR ASST.) 1�A�S�A� �
PUBLIC HEARING ORDER coc.�nssiox
TOTAL # OF S[GNA7'URE PAGES _I (CLIP ALL LOCATIONS FOR SIGNATURE)
acriox xEQuESrEV: . Public hearing to approve T� Increment Financing Disfrict No. 1(North Quadrant)
RECOMIv]ENDATI013S: Approve (A) or Reject (R) PERSONA[. SERViCE CON7'RAC1S M[7ST ANSWER TI�E FOLLOWRVG
QUESTIONS:
PLANNING COA9vIISSION 1. Has this personiSrm ever workeA undet a conhact for this depaztmenY?
CIB COM��IITTF.E Yes No
CIVII. SERVICE COMMISSION 2. Has this person/fum ever been a city employee?
Yes No
3. Does this person/fimi possess a skill not noanal7y possessed by any current city employee?
Yes No
Explain aIl yes answers on separate sheet and attach to green sheet
INI17A1'ING PROBLEM, ISS[IE, OPPORT[7N11'Y (WLo, What, When, Where, Why):
Creation of t� increment financing and street on block bounded by 7th, 8th Wacouta and Sibley streets will a11ow
fmancial assistance to construction of ll4 rental units of which 46 are affordable, 38 for sale town homes and
13,000 sq. ft. of commercial.
ADVANTAGES IF APPROVED�
This project is part of North Quadrant Redevelopment Plan to create urban village in North Quadrant of downtown
St. Paul.
DISADVANTAGESIFAPPROVED:
DISADVANI'AGES IF NOT APPROVED:
Project will not proceed forwazd.
TOTAL AAiOUNT OF'fRANSACI'iON: $ COSTlREVENUE BUDGETED:
FL7NDING SOURCE: ACTIVTTY NUMBER:
FIlVANCL4L INF012MATION: (EXPLAIN) A �„ps��rct� Cerfe�
��
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po ��71
Interdepartmental Memorandum
CITY OF SAIN'I' PAUL
TO: Council President Bostrom
Councilmember Benanau
Councilmember Blakey
Councilmember Coleman
Councilmember Harris
Councilmember Lantry
Councilmember Reiter
FROM: Brian Sweeney
Allen Cazlson
DATE: 7uly 28, 200�
RE: PUBLIC FIEARING: RESOLUTION ESTABLISffiNG TAX INCREMENT
FINANCING DISTRICT NO.1(NORTH QUADRANT) AND ADOPTING
THE RELATED TAX INCREMENT FINANCING PLAN
Purpose
The purpose of this public hearing is to receive public comment and request the City Council to
approve a resolution which establishes TaY Increment Financing District No. 1(North Quadrant)
which is bounded by 7`", 8�' , Wacouta and Sibley Streets. Adoption of the Tax Increment
District will allow increments to be generated to assist in the fmancing of a proposed 114
multifamily rental building with 13,000 square feet of commercial space and a 38 unit for sale
town home development. Twenty-two percent of the rental units will be affordable to
households at or 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,
BackgroundlProposal
The North Quadrant Redevelopment Project Area is on the immediate edge of the core of
downtown Saint Paul and is generally bounded by Highway I-94, Jackson Street and East 7th
Street. The area is currently characterized by underutilized buildings and large surface parking
Page 1 of 7
aa���1
lots although there aze positive assets such as the First Baptist Church, St. Mary's Catholic
Church, as well as an assortment of smaller viable businesses. In June of 1999, the City Council
adopted the North Quadrant Redevelopment Plan wluch set development objec6ves and urban
design guidelines for the azea. A major component of the plan was to foster an 3ncrease in the
residential population of downtown including increased opporiunities for affordable housing in
accordance with the Saint Paul Housing Plan.
Sherman and Associates specializes in the design, construction and financing of rental and
ownership housing in Minnesota, North and South Dakota and Wisconsin. They have developed
over 3,000 of single family and multifamily homes since 1978. The Lander Group is a full
service real estate development company known for high quality urban infill housing. On
December 22, 1999, the HI2A Boazd approved Resolution 99-12/22-11 granting the Developer
tentative developer designation with the task to finalize financing, prepaze plans and negotiate
terms and conditions of a development agreement.
Proposal
The Developer is proposing a two phase project beginning conshuction this fall on Block 31
adjacent to 7th Street. Phase Two would start in the suuuiier of 2001 on block 17. The
Developer's proposal(3.0 acres) constitutes approximately ten percent (10%) of the totalland
area of the North Quadrant Redevelopment Project Area . The multifamily rental units which
would be 4- 5 stories high would be located along 7th Street and Temperance Street. The 76
for-sale town homes would front along the new park on 8th and Sibley Street. Project I
construction will include a 114 unit multifamily L-shaped building with 13,000 square feet of
commerciaUretail space on the first floor fronting 7th Street and underground parking far entire
building. Project I will also include construction of 38 for-sale town homes.
Project II will be a mirror image of Project I except that rental component will have no
commercial space and 118 units. In order to accommodate Project II, Sibley Street will need to
be moved sixty feet to the East to aliow for a similaz size biock as Project I. The cost of moving
the Street, estnnated at $253,OOQ, will be funded with the Communities Livability Grant the City
was recenUy awarded by the Metropolitan Council.
The nronosed unit
20
>, mix and rents for the Project I multi:
Studio MktRate 780
32 1 BR
16 2BR
17 � 2BR (Sec 8)
8 � 3 Br (Sec 8)
I1 I 1BR
6 I 2 BR
Mkt Rate
Mkt Rate
30
30
50
50
Page 2 of 7
1,030
1,290
684
925
b16
738
rental buildine is as follows:
550
850
1,100
L,L00
1,300
850
1,100
00 -'1��
4 3 Br 5� 8i4 1,300
114
Project II will have an almost identical mix of unit types and afford ability. For Project I, 40%
of units wili be affordable pursuant to the Housing Action Plan's policy goals. Specifically, 22%
(25) of the units will be affordable to households at or below 30% of the azea median income and
18% (21) units wili have rents affordable to households at 50% of the azea median income. The
annual income of a two person household at 50% of the area median income is $26,300, whereas,
the income for a 4 person household at or below 30% of the area median income is $19,700.
The 38 Project I for sale units will range in size from 850 to 2,250 square and sale prices from
$119,000 to $345,000, thus being affordable to households between 80% and 140°/a of the azea
median income. The higher priced units will be two stories with separate ground floor access.
The upper two levels of the complex wiil have single level flats. Appro�mately, 60% of the
units will be affordable to households at or below 115% of the area median income.
The under ground parking structure will have a total of 143 spaces of which 88 spaces wi11 be
devoted to the rental units and 55 spaces will be devoted to the for sale units.
Proposed Financial Structure ofthe Project
Due to timing and limited City financial resources it is proposed that Project I and Project II be
fmanced separately and differently. The proposed means to finance the Project I rental
component is as follows:
Sources of Fmds Uses of Funds
FicstMortgage $7,125,000 LandSales $335,QQ0
Tae Increment Mortgage 1,945,000 Construction 12.008,000
ffi2A HOME Defe[red Mortgage 750,000 Parking Structure 1,600,000
II2A gcant 250,000 Professionffi Fees 451,60�
Met Council Defened Mortgage - 500,000 Soft Costs 165,800
Inclusionary
MHFA Deferred Mortgage - 70Q000 Construcfion Financing Costs 759,600
Employer Challenge
Family Housing Fund Deferred I50,000 Working Capital Reserve 151,400
Mortgage
Taac Credit Syndicated Equity 5,200,000 Operating Deficit Reserve 30Q000
Developer Letter of Credit 481,400 Developet Fee 1,30Q000
Total $17,1O1,A00 Total $17,1O1,A00
The $7,125,000 first mortgage loan to be repaid &om pro}ect revenues will be a 221(d}(4) HUD
insured note amortized over a 40 yeu term and interest rate of 8.5%. The tax increment
mortgage wall also be HUD insured with a amortized 25 year term, interest rate of 8.5% and
Page 3 of 7
Oo-��1
secured with a pay-as-you-go tax increment note provided by the City. The pay-as-you-go note
only pledges increments from the TIF district and places no obligation or debt upon the City or
HRA. The Metropolitan Council, Minnesota Housing Finance Agency and Family Housing
Fund have jointly awarded $1,350,000 of defened subordinate mortgage loan proceeds to Project
I. Forty percent of Phase One will have an eligible basis to syndicate low income housing tax
credits. The Developer will need approximately $522,000 of tax credits, which the City has
using the balance of its 2000 allocation and all of its yeaz 2001 allocation. The tax credit will
leverage approximately $5.2 million of syndicator equity to Project I covering 30% of the total
development cost. U.S. Bank is purchasing the credits at a premium of $0.92 on the dollar.
(Normal rate is about $0.81) The premium being paid by U.S. Bank enable the City to
successfully receive $700,000 under MHFA's Employer Challenge fund program (part of the
$1.35 million contribution). The Developer will be required to fund $481,000 towards a working
capital and operating deticit reserve fund, therefore the actually developer fee will be $819,000
which is lower than the $833,000 allowed pursuant to the developer fee resolution adopted by
the Board.
Despite the substantial financing resources secured so far for the rental building, the project is
still $1 million short of being fully funded. Staff is recommending the gap be filled with a
$750,000 loan from the federal HOME Program. The loan would be amortized over 30 year with
a 3% interest rate. In addition, staff is recommending a$250,000 grant from the HRA Enterprise
fund which would help to fulflll the City's local match requirement to use tax increment funds
for ProjectI.
The proposed financiug for the 38 for sale units of Project I is as follows:
Sources of Funds Uses of Funds
Snles Proceeds $7,672,000 Acquisition $ll5,000
T�x Increment Funds I,OOQ000 Underground Parking 950,000
MHFA/Met Council 900,000 Site work 150,000
Construction 5,625,000
Holding costs 575,000
ProfessionaVMarketing 671,000
ArchitecUEngineering 236,000
Contingency - 2% 200,000
Profit 1,050,000
Total $9,572,000 Total $9,572,000
The sales price points are based upon the style of units being constructed and estimates from the
Page 4 of 7
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M�eld Matket Study. Its estiruated that sales proceeds will cover approxiinately 80% of the
actually cost to construct the town homes. A major cost of Project I is the underground parking
shuchue. Basically, the tas increment provided to Project I is paying the cost of the parking.
The average per unit cost is $251,894 of which pazking constitutes $25,000 per unit. The
average sales price is $201,894, thus leaving a$SQ,OQO gap between sale proceeds and cost. The
City's portion to fill the gap is $26,315 per unit wluch is withiu established City policy. The
City's financing gap is recommended to be funded enfuely through tas increment funds in
which the Developer will sell a note provided by the City to an investor such as Fannie Mae or
U.S. Bank. The Developer will be encouraged to increase the sales prices as units aze sold. 5taff
has negotiated a 35% participation in the increased base sales price of any unit so1d. Should
sales prices increase during Project I, new base sales prices will be established for Project II
which will result in a lower tas increment participation on the part of the City.
Taa Increment Financing District
Due to the high cost of development including land acquisition and fmancing the proposed
improvements such as the underground parking for Project I, this project is feasible onip through
assistance, in part, from tax increment financing. The district would be bounded by 7�`, 8`�` ,
Wacouta and Sibley Streets. A copy of the Plan and project azea map is attached as E�ibit A.
The 2000 session of the Minnesota Legislature passed and the Governor signed a speciallaw for
the Northeast Quadrant that allows the creation of a TIF district for an owner and rental occupied
residenfial housing development for mixed income occupancy. Formerly, TIF district
regulations either appiied to rental or to ownership exclusively. Under the new law, only for the
North Quadrant, 60% of the units in the development must have income less than 115% of the
area median income and 2Q% of the units must be occupied by households at or below 50% of
the area median income. The balance of the units do not have income restrictions. Under prior
eYisting law 95°l0 of the ownership units had to be occupied by households at or below 115% of
the area median income. The new law provides much more flexibility in formulating
developments and stil] provides a high level of afford ability.
Public Purpose
Project I meets several of the objectives, strategies and operating principles of the Housing
Action Pdan 2000 as follows:
1. Support the production of ownership and rental housing in Saint Paul. Project I`s 152
uniis meet 20% of the goal to provide immediately 750 new housing units in the city.
The availability of rental housing, especially affordable rental housing is extremely low.
2. provides a diversity of building and unit types, rental and ownership.
3. Fosters economic integratian for both rentat and ownership units.
4. Subsidizes the provision of low income housing units in new housing developments.
5. Provides quality housing to create an ariracfive neighborhood and links naw development
to broader community objectives. Project I promotes "New Urbanism". It combines
mixed-use, mixed-income, transportation linkages and employment connections.
6. follows the principles of the Saint Paul on the Mississippi Development Framework.
Page 5 of 7
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Neighborhood Input
The CapitolRiver Council and its North Quadrant Advisory Committee have actively worked
with the Developer regazding the design and financing of Project I and II.
Findings of Fact to Support Adoption of Tax Increment Financing Bistrict No. 1(North
Quadrant)
The reasons and faets supporting the findings for adoption of the Tax Increment Financing
District I�3o. 1(North Quadrant) pursuant to MN Statutes, Section 469.175, Sub. 3, are as
foliows:
1. Finding tTzat the District is a°housing distr-ict. "
This Taac Increment District is in the public interest because it will provide needed
multifanuly housing Saint Paul of which at least 20% of the units will be affordable to
households at or below 50% of the azea median income. In fact the district will pzovide
affardable housing of which 40% will be affordable for rental housing and 60% of the
ownership units will be affordable pursuant to state definition of affordable ownership
housing.
2. Finding that the proposed deveZopment, zn the o�inion of the Council, would not
reasonably be expected to occur solely through private investment within the reasonably
for�eseeable�istac�-e and tluit the increased market value of the site that coutd reasonably
be expected to occur without the use of tc� increment fznancing would be Zess than the
increase in the market vatue estimated to result from the proposed development after
subtracting the present value of the projected tax inerements for the maxiTnum duratlon of
the district permitted by the plan.
Due to the high cost of development on the parcels including the cost of land acquisition
and financing the proposed improvements, this project is feasible only through assistance,
in part, from tax increment financing.
A comparative analysis of estimated mazket values both with and without establishment
of the Taac Increment Financing District No. 1(North Quadrant) and the use of tas
increments has been performed as described above. If all development which is proposed
to assist with t� increment were to occur in the proposed Project I, the total increased
market value would be up to $15,749,244. It is the Council's finding that no
development with a mazket value of greater than $15,744,244 would occur without ta�c
increment assistance in this district within 15 years. This finding is based upon evidence
from general past eaperience with the high cost of providing public improvements in the
general azea of this District.
Finding that the Tczz Increment Financing District No. 1(North Quadrant) conforms to
Page 6 of 7
a� -�a �
the general plan for the development or redevelopmenf of the municipality as a whole.
The Establishment of the Tas Increment Financing District No. 1(North Quadrant) for
the North Quadrant Development Project Area conforms to the City's Comprehensive
Plan and Saint Paul on the Mississippi Development Framewark .
4. Finding thar the Establishment of the Tax Zncrement Financing Dis£rict Na 1(Norih
Quadr�ant) far the North Quadrant Redevelopment ProjectArea will afford mazimum
opportunity, conszstent with the sound needs of the City as a whole, far the development
of the North Quadrant Redevelopment Project.
The number of housing units to be developed will increase the housing stock in the City
and the State of Minnesota.
Recommendation
Staff recommends and requests the City Council to consider adoption of the attached resolution
which approves and adopts the following:
Estabiishment of the Tax Increment Financing District No. 1(North Quadrant); and
The T� Increment Financing Plan to finance the Project.
Statement of the Council President
Being duly authorized by the City Council to conduct this Public Hearing, the hearing is now
open. This Public Heazing is calied for the proposed purpose to consider the following:
Estabiishment of the Tau Increment Financing Disttict No.l (North Quadrant); and
Approval of the TaY Increment Financing Plan.
Notice of tnne, place, and purpose of this hearing was published in the Saint Paul Legal Leger on
July 27, 2000. The affidavit of the publicafion of the Notice of Public Hearing will be made a
part of these proceedings.
Is there anyone who wishes to be heard on this item? If not, the Chair will declare this Public
Hearing adjourned.
Attachments
Tax Tncrement Financing District No. 1(North Quadrant)
Resolution approving TaY Increment Financing District No. 1(North Quadrant}
Page 7 of 7
�
00-'?3�
TAX INCREMENT FINANCING PL�1N
for the establishment of
TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRADTT)
(a housing district)
within the
NORTH QUADRAI3T REDEVELOPMENT PROJECT AREA
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUI3TY
STATE OF MINNESOTA
Adopted: August 9, 2000
This documenC was dra£ted by: SRIGGS AND MORGAN, (MNID)
Professional Association
2200 First 23ational Bank Bldg.
St. Paul, N3N 55101
(651) 223-6625
1193029.2
00 -73 �
TABLE OF CQNTENTS
(for reference purposes only)
TAX INCREMENT FINANCING P TAN
FOR TAX INCREMENT FINANCING DISTRICT N0. 1(NORTH QUADRANT)
Pa4e
Subsection 1.
Subsection 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6
Subsection 7
Subsection 8
Subsection 9.
Subsection 10
Subsection 11
Subsection 12
Subsection 13
Subsection 14
Subsection 15
Subsection 16
Subsection 17
Subsection 18
Subsection
Subsection
Subsection
Subsection
19.
20.
21.
22.
8ubsection 23
Subsection 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
Einancing District No. 1 . . . . . . . .
Parcel in Acquisition . . . . . . . . . .
Development Activity in Tax Increment
FinanCing District 230. 1 for which
Contracts have been Signed . . . . . . .
Other Speci£ic 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 . . . . . . . . . . . . . . . .
ModiEications to Tax Increment Financing
Aistrict . . . . . . . • • • - • • • •
Administrative Expenses . . . . . . . .
Limitation of Increment . . . . . . . .
Use of Tax Increment . . . . . . . . .
Notification of Prior Planned
Improvements . . . . . . - . - • • • •
Excess Tax Increments . . . • • • • .
Requirements for Agreements with the
Developer . . . . . . . . . . . . . . .
OC.her Limitations on the L3se of Tax
Increment . . . . . . . . . . . . . . .
County Road Costs . . . . . . . . . . .
Assessment Agreements . . . . . . . . .
Administration of the Tax IncremenC
Einancing District . . . . . . . . .
Financial Reporting Requirements . . .
. 2
. 3
. 3
. 3
. 3
. 4
. 4
. 4
. 5
�
9
10
10
12
12
13
13
14
is
15
15
15
1183029.2
ao-73�
EXHISIT A- Map of Ta�c Sncrement District No. 1
EXHIBIT B- Map of 13orth Quadrant Redevelopment Project Area
EXHIBIT C- Projected Tax Increments
1183029.2
00-'131
TAX INCREMENT FINANCII3G PLAN FOR
TAX INCREMENT FINA23CING DISTRICT NO. 1(NORTH QUADRANT)
Subsection 1. Forward. The Aousing and Redevelopment
Authority of the City of Saint Paul, Minnesota (the "HRA"), and
iCs staff and consultants have prepared the following information
for the establishment of Tax Increment Financing District No. 1
(23orth 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. Statutorv Authoritv. There exist areas
within the City of Saint Paul (the "City") where public
involvement is necessary to cause devel.opment to occur. To this
end, the HRA has certain statutory powers pursuant to special
legislation (Laws of Minnesota, Chagter 490, Article 11, Section
40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Tax Increment Financing Act" or "TIF Act"),
to assist in financing public costs related to a project.
Subsection 3. Statement of Objectives. 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 District is being created to facilitate a 38 unit owner
occupied townhome development and a 114 unit rental apartment
facility. 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 Housina for Saint Paul 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 Redevelo� Underused Propertv.
The Tax Increment District is a site that has been
underutilized for many years. The majority of the area comgrising
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
below 30% of the area median income and 23 units will be
1183029,2
da-�3�
affordable to households at or below 50°s of the area median
income. 23 of the owner-occupied units will be affordable to
households between 8�a 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.
St is expected that the taxable markeC value of parcels in
the Tax Increment District will increase by approximately
$21,280,000.
The acCivities contemplated in the Redevelopment Plan and
this Tax increment Financing Plan do not preclude the undertaking
of 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. Redevelopment Plan Overview.
2
Property to be Acquired - Selected property located
within Tax Increment Financing District or
Redevelopment Project Area may be acquired by the HRA.
Relocation � if necessary, complete relocation services
are available pursuant to Minnesota Statutes, Chapter
117 and other relevant state and federal laws.
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 HRA 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 District No. 1. The following parcels located in the
City of Saint Paul, Ramsey County, Minnesota:
PIN NO.
312922440028
312922440029
ADDRESS
221 7 Street East
440 Sibley Street
1183029.2 2
OO -�31
FURTHER I23FORMATION REGARDING THE IDENTIrICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT N0. 1 CAN BE
OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA•
Subsection 6. Parcel in Accruisition. The IiRA may finance
all or a part o£ the cos�s 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 ARA 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 wi11 be undertaken only when there is
assurance of funding to finance the acquisition and
related costs.
Subsection 7.
Kinanciu L������� �.... _.._ •.----- - —
The following contracts have been or will be entered into by the
HRA and the gersons named below:
No development agreements have been entered into at
this time. However, the HRA anticipates entering into
a flevelopment agreement with an entity to be formed by
George Sherman Associates and the Louder 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 Soecific Development Exoected to Occur
within Redevelooment Area.
Although no specific additional developments have
identified at this time, the HRA expects that the
acquisition and construction of the above housing
development will encourage additional development
the Redevelopment Project Area.
been
in
SubsecCion 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, Chis 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:
1183029.2
00 -�31
Uaes of Funds
Land Acquisition
Site Preparation
Parking
Interest Costs
Administrative Costs
TOTAL
Rental
335,000
1,600,000
Owner
AccLuired
115,000
150,000
950,000
Total
$ 450,000
150,000
2,550,000
5,500,000
970.000
$9,625,000
Estimated costs associated with Tax Increment Financing District
are subject to change. The cost of a11 activities to be
considered for tax increment financing will not exceed, without
formal modification, the budget above pursuant to the applicable
statutory requirements.
Subsection 10. Estimated Amount of Bonded Indebtedness. No
bonded indebtedness is anticipated to be issued. The
expenditures authorized by this Tax Increment Financing Plan will
be paid for on a pay-as-you-go basis.
Subsection 11. Sources of Revenue. Land acquisition,
demolition, and other costs outlined in Section 9 above under the
Estimated Cost of Project will be financed through the annual
collection of tax increments as described below. The total cost
of the 114 rental apartment facility are estimated to be
approximately $17,000,000. The total cost of the 38 unit owner
occupied townhome development is estimated to be approximately
$9,500,000.
The sources of revenue for these costs include a star loan
from the City or HRA federal HOME funds, together totaling
approximately $1,000,000, grants or loans from the Metropolitan
Council of approximately $900,000, and assistance from the
Minnesota Housing Financing Agency of approximately $1,300,000.
The Developer will contribute equity or obtain private financing
for the remaining cost of the housing developments.
Subsection 12. Estimated Captured Tax Capacitv and Estimate
of Tax Increment. The most recent tax capacity of Tax Increment
Financing District is estimated to be $10,577 as of January 2,
1999.
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. 1. The
1183029.2
00 -�31
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 detexmined that the proposed
development of the Tax Tncrement DistricC would not reasonably be
expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value
of 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 the district
permitted by the plan.
SubseCtion 14. Duration of 7'ax lncremenL r���a��c.:��,u ,��������.
The duration of Tax Increment Financing District will be 25 years
from the receigt 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 Utner �i�axin �urisa�c-
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 o£ tax inCrement
financing, the impact is $0 to other entities. Notwithstanding
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 Che 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:
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Subsection 17. M odification of Tax lncremenc rinanc�nv
District andlor Tax Increment Rinancina Plan. As of August 9,
2000, no modifications to Tax Increment Financing District No. 1
or the Tax Increment Financing Plan therefore have been made.
Subsection 18.
In accordance with Minnesota Statutes, Section 469. 175,
Subd. 4, any:
1. reduction or enl.argement of the geographic area of the
Tax Increment Financing District;
2. increase in amount of bonded indebtedness to be
incurred, including a determination to capitalize
interest on debt if that determination 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
aapacity 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 the original
plan.
The geographic area of District may be reduced, but sha11 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
parcel(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 net 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 t� capacity of the
parcel(s) eliminated from the Tax Increment Financing District.
The ARA must notify the County Auditor of any modification that
reduces or enlarges the geographic area of the Tax Increment
Financing District or the Redevelopment Project Area.
Modifications to Tax Increment Financing District in the �orm of
a budget modification or an expansion of the boundaries will be
recorded in the Tax InCrement Financing Plan.
1183029.2
00 -731
Subsection 19. Administrative Expenses.
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 locaCed in the district;
or
3. amounts used to pay interest on, fund a reserve for, os
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
planning 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 percent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures, whichever is less.
Pursuant to Minne5ota 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
triose expenses by February 15 of the year following the year the
expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 1.77, Subd. il,
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 Eor the Tax
Increment Financing District after three (3) years from the date
of certification of the Original Net Tax Capacity value of the
taxable property in the Tax Increment Financing District by the
County Auditor unless within the three (3) year period:
1183029.2 1�
ao -�3�
(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 District, 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 payment of bonds and
interest thereon may be discharged and may be ternlinated 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 installation of utility service
including sewer or water systems, has been commenced on
a parcel located within a tax increment £inancing
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 sha11
be excluded from the original net tax capacity of the
tax increment financing district. If the authority or
the owner of the parcel subsequently oommences
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 of 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.
1153029.2 1�-
ao - �3�
Financing District and found no parcels for which building
permits 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 o£ 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, subjec� 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. Recruirements for Agreements with the
Developer.
The HRA will review any proposal for private development to
determine its conformance with Che 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
cleemed necessary by the 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 HRA as a result of 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 property acquired and
which provides recourse for the HRA should the development or
redevelopment not be completed.
1183029.2 �"3
00-�1�
Subsection 25. Other Limitations on the Use of Tax
Increment.
l. General Limitations. A11 revenue derived from tax
increment shall 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 469.124 to 469.134;
These revenues shall not be used to circumvent existing
levy limit law_ No revenues derived from 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. Pooling Limitations. At least 80 percent of tax
increments from the Tax Increment Financing District
must be expended on activities in the Tax Tncrement
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 otherwise, 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 be treated as if they were solely for activities
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 sixCh year following certification
of the Tax Increment Financing DisCrict, 80 percent of
said tax increments that remain aftier expenditures
permitted under said five year rule must be used only
to pay previously commitment expenditures or credit
1183029.2 �.�
oa-731
enhanced bonds as more fully set forth in Minnesota
Statutes, Section 469.1763, Subd. 5.
Subsection 26. Count� Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la,
the county board may require the ARA to pay for all or part of
the cost of county road improvements i£, the proposed development
to be assisted by tax increment will, in the judgement o£ the
county, substantially increase the use of county roads requiring
construction of road improvements 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 ARA 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 FTRA 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
assignecl to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in
�he assessment agreement appear, in the judgment of the assessor,
to be a reasonable estimate, the assessor may certify the minimum
market value agreement.
Subsection 28. Administration of the Tax Increment Financina
District
Administration of the Tax Increment Financing DistriCt will
be handled by the Executive Director of the HRA.
Subsection 29. Financial ReportincZ Req_uirements.
The HRA will comply with all reporting requirements of
Minnesota Statutes, SeCtion 469.175, Subd. 5, 6 and 6a.
1183029.2 �-5
EXHIBTT A
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Assum tions Re ort
City of St. Paut, Minnesota
Proposed Tax increment (Redevelopment) Financing District
North Quadrant (Sibley Park) Housing Development
Scenario A- Phase One Total Project (26 years, 8% note)
Type of Tax tncrement Financing District
Maximum Duration of TIF District
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: First 30 0.00%
Excess 0.00%
Original Net Tax Capacity (1)
�2,683,500 575,749,244 515,749,244 $15,749,244
Assessment/Collection Year
Base Estimated Market Value
Increase in Estimated Market Value (1)
Total Estimated Market Value
Times: First
Excess
Total Net Tax Capacity (1)
Base Inflation Factor
Locat Tax Capacity Rate
Fiscal Disparities Co�trlbution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooting Percent
City Tax Rate (Only if Local-Effort TIF)
Bonds
Bonds Dated
Firstlnterest Date
Underwriters Discount
$265,389
2001/2002 2002/2003 2003/2004 2004/2005
00-'13 �
$683,500 $683,500 5683,500 $683,500
2,000,000 15,065,744 15,065,744 15,065,744
NA
NA
NA
LGA/HACA Loss:
Will Annual Locai Contribution Be Made (Yes or No)? (2)
I.S.D #625 Equatized Tax Capacity Aate
I.S.D #625 Sales Ratio
City Saies Ratio & Taxable Net Tax Capacity
Present Value Date & Rate
Yes
NA
NA
NA
09/01/00
NA
5.00°/,
(1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be available for debt service.
Prepared by: Springsted Incorporated (printed on 06128l20�0 at 321 PM)
SO 0.00%
0.00%
Ftedeve4opment
25 years from 7st incremeni
09/07/00
12/Ot/27 (26 Years of Increment)
2000/2001
S683,500
0
0
$10,577
0 0 0 0
0 0 0 0
$41,527
5265,389 $265,389
NA
148.553%, (Payable 2000)
0,0000°10 (NA for Housing)
10.00%
0.00%,
NA
Note (Pav-As•You-Go)
Note Dated 09l05f00
Note Rate 8.00%
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Pro ected Pa -AS-YOU-Go Note fle rt
City of St Paul, Minnesota
Proposetl Tax Incr<ment (ReEeveiopment) Fnanring Oistrict
North Ouatlrant (Sibley Park) Housing Developmen[
Scenario A- Phase One Toial Project (26 years, 8%notej
Note Date: 09/Ot/OD
Nde Ra[¢: 800%
PmounF. 53p5<,300
Semi-Mnual Loan
Net CapitaGxed Batance
Dale Principal Interest P&I Rev�ue IntereA Ovlstantlin9
(i) (2) (3) (4) (51 (61 R)
0901/Dt 0.00 000 O.CO 0.00 101,8ID.00
OB101101 000 0.00 0.00 0.00 1262a4.a0
02/01/02 0.00 0.00 0.00 O.Op 131,236.18
08�01/02 0.00 20.638.0p 20.638.00 20.638.00 115.90].94
0?J01/03 6.00 20.6300p 20.638.00 20.638.00 120.54b26
OB/Ot/03 23.9089� 146.004.03 169,913.00 169.91300 000
0?1OVO4 23,865.33 145,Od1.6] 169.913.00 169.9t300 0.00
0&Otl04 25,fl59.94 t46.053.OG }{9,913.00 169.913.00 090
02/01/OS 26.896.34 163,01866 169,9130p 169.91300 0.00
O6N1/OS D.9]0.1/ 141.96289 169.913.00 169.91300 000
0?/Ot/O6 29.08892 140.ffi4.08 169.913.W 169.913W O.W
08/Ot/O6 30,25267 139.660.53 169,913.00 169.913_00 0.00
02/01/0] 31,d62.5] 138.dW.d3 169,91300 169.913.00 000
08�01/01 32.)21.0] 13].19L93 169,913.00 169.91300 000
02/Ot/08 34,029.92 135,883.08 169,913.00 169.91300 0.00
OBl6tfOB 35,391 tt 1�a,521.e9 /69.913.00 169.9t3.00 000
02/01/09 36,BW16 133,10624 t69.91300 169.91300 0.00
OB/Ot/09 38,299.03 131.6339] 169.913C0 169.91300 0.00
0?I�1/1Q 39.BIOA9 130.t�281 t69.913.a0 169,9t3.00 OCO
08/Ot/iD a1,a02.60 128.510.40 169,913.00 169.913.00 000
02/01/i1 43,OSB]0 126.854.30 169,913.00 169.913.00 000
OB/Ot/1/ 40,]S1A5 125.13195 169.913.00 169,91300 0.00
01101/12 46.5]2.29 123.3a0�1 169.91300 169.913.00 000
08101/12 A8,a35.18 12t,4T).82 169,913.00 169.913.00 000
02/Ot/13 50.3]2.59 119.54041 169.91300 169.913.00 0.00
OB/Oi/13 52.38Z49 117.52551 169.91300 169.91300 0.00
02/Olft6 56,6g2.99 115.62001 169.913.00 169,913.00 0.00
OB/01Ad 56.662.31 it3250.69 169.913.00 169,913.00 0.00
02/OtAS 58,928.Bt 110.984.19 169.913.00 169,9/3.00 0.00
OB/Ot/15 61,2g$.95 108,62P.�4 169.913,W 169.913.0� 000
02/OVi6 63,]37.40 106J]5.60 169.913.00 169,913.00 0.00
OB/Ot)16 66,286.89 103.626.11 169.913.00 169,913.00 0.00
02/01/t7 fi8.938.3] 100,974.63 169,913.00 169,913.00 0.00
OB/01/t7 ]1,695.90 98,21].f0 1fi9.9/3.00 769,91300 0.00
0?lOi/t8 ]b,563.]d 95,3a926 t69.91300 169,913.00 O.OD
Ofl/Ot/18 7/,SC629 92,36671 169,913.00 169,913.00 0.00
02/Oi/19 80,648,id 89,264.86 169,913.90 )69,913.00 0.00
06�01119 B3.B16.09 86.038.93 t69,9/3.00 169.9t3.00 0.00
02/01/20 8].229.03 82,683.97 169,913.00 169,913.00 0.00
OB/01/ZO 90.]18.f9 79,19d.8/ 169,913.00 169.913.00 0.00
�2/Ot(21 94.346.92 ]5.565.08 169.91300 169.913.00 � 0.00
08/01@1 98.120.]9 ]1.79221 169.913.00 169.9/3.00 0.00
02/Ot/22 102.04563 67,86Z3� 169,913.00 169,913.00 0.00
08/OV22 106.12].45 63,785.55 169,913.W 169,913.�0 O.W
02/Ol/23 110,3]2.55 59.540.45 169,913.00 169.913.00 0.00
08�OV23 118,]87.b5 55,125.55 189,81300 1W,913.00 000
02/01/24 119,3]8.95 50,534A5 169,913.00 169,913.00 0.00
0&01/24 124.i54.N 45J58.89 169.913.00 169.9t3.00 0.00
02/01/25 129.12027 6D.]92.]3 169.913.00 I&9.913.00 0.00
OB/Ot/25 734.2&5.08 35.62].92 169.913.00 769.973.00 0.00
02/Ot/26 139,656.49 30256.51 169,913.0� 169,913.00 0.00
OflNt(26 1a5.242.)5 24.87025 169.9t3.00 /69.913.00 0.00
0?JOl/2] 151,052.66 18,H60.56 169,91300 169,913.00 0.00
OH/Ol@7 15].094.55 12,81B65 169,913.00 169.9/3.00 0.00
02lOtl28 163.366.6t 6,534.66 769.90127 159.901.27 0.00
09/Ol/28 0_00 0.00 0.00 0.00 0.00
OY01/29 000 0.00 0.00 0.00 0.00
33.650.107 Sa.886,81&49 58.536.97d.9 58.536.91427 5595.800.]8
Excess Tax Increment 11.]3
TotalNe[Revenue 58,536,926.00
3.054.300.00
3,156,110.00
3,282,354.d0
3,a13,6aB.58
3.529,556.52
3.650,100.]8
3,626,191.81
3.601.326 de
3.575,465.54
3,560,5)220
3,520,602.09
3,49t,513II
3,d61.260 70
3,429,]98.13
3.39].O1J.06
3.363,04].14
3,321,65603
3,290.8692]
3,252,5)024
3.2t2.1f0.05
3.1]y35].45
3,128,298.�5
3,OB3,51 T 90
3.036,9a5.dt
2.988.510.23
2.938,13P.64
Z.B85,�50 15
2.831.261.16
2.]]A,604.85
2.]15,61604
2,654.390 OB
2,590,652.68
2.52a.365.19
2,d55.d21.a2
2,383,731.52
2.309.16].]8
2,231,621.d9
2,150,973.35
2.06].O�J32H
1.9�9.8�a25
1.889,752.06
1.794.805.1<
1.696.68d.35
1.59a,638.]2
1.488.511.21
f.3]8.13&�2
1.263.3512]
1.143.972.32
1.019.81821
890.69].94
]56.412.86
616,]56.3]
d1t,513.62
320.d61.i6
1W.3fi6.61
0.00
O.aO
0 00
Preper¢d py:5pringsletl InmrporateC (pnntetl o� 06/2fl@000 at 322 PM) Lf062Ba.zls
Market Value Analysis Report
City of St. Paul, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North Quadrent (Sibley Park) Housing Deveiopment
Scenario A- Phase One Totai Project (26 years, 8%a note)
Assumptions
Present Value Date
P.V. Rate - Gross T.I.
Increase in EMV With TIF District
Less: P.V of Gross Tax increment
Subtotal
Less: Increase in EMV Without 71F
Difference
1
2
3
4
5
6
7
8
9
70
1i
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
09/Ot/00
8.00%
$15,065,�44
3,481,295
$11,584,449
0
$17,584,449
Annual Present
GrossTax Va{ue@
Year Increment 8.00%a
2002 45,977 39,166
2003 378,531 298,569
2004 378,531 276,453
2005 378,531 255,975
2006 378,531 237,074
2007 378,531 219,457
2008 378,531 203,201
2009 378,531 188,149
2010 378,531 174,212
2017 378,531 161,308
2012 378,531 149,359
2013 378,53t 135,295
2014 378,531 128,057
2015 378,531 118,566
2076 378,531 109,783
2017 378,531 10�,651
2016 378,531 94,121
2079 378,531 87,149
2020 378,537 80,694
2021 378,531 74,717
2022 378,531 69,782
2023 378,535 64,057
2024 378,53t 59,312
2025 378,531 54,919
2026 378,531 50,851
2027 378,531 47,084
$9,509,252 $3,481,295
00 -�31
Prepared by: Springsted incorporated (06/28/2000}