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00-819Council FSIe # O V � ,q OR1GII�AL Presented by: Referred To Green Sheet # 101334 RESOLUTION CITY.OF SAINT PAUL, MINNESOTA � l ; � . Committee Date RSSOLIITION SIIPPLEI�NTING CITY COIINCIL RfiSOLIITION NO. 00-319 BE IT RESOLVED by the City Council (the ^COUncil"J of the City of Saint Paul, Minnesota (the "City"), as follows: WHEREAS, the Port Authority of the City of Saint Paul (the "POrt Authority") has previously adopted its (a) Resolution 3629, on May 27, 1997 to establish the Maxson Steel/Dale Street Shops 2 Industrial Development District in the City of Saint Paul; and (b) its Resolution No. 3826, on March 28, 2000 establishing the Great Northern Business Center - Phase I Tax Increment Financing District and Hazardous 5ubstance Subdistrict (the "Tax Increment District"), and approving the Tax Increment Financing Plan (the "Plan") therefore; and WHEREAS, the City has previously adopted its Resolution No. 00-319 on April 5, 2000 authorizing the creation of the Tax Increment District and the adoption of the Plan, all in conformity with applicable law; and WHEREAS, it has been determined that the Exhibit A which was attached to the City's Resolution No. 00-319 was incorrect, and did not set forth in desirable detail the reasons and supporting facts for the findings that the City made that had previously been made by the Port Authority, and which are necessary to the establishment of the Tax Increment District; and WHEREAS, the City desires to ratify its prior decision relating to the creation of the Tax Increment District, after setting forth the reasons and supporting facts in desirable detail.. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Pau1, Minnesota as follows: 1. The Council hereby finds triat the Tax Increment District is in the public interest and is a"redevelopment district" under Minnesota Statutes, 3ection 469.174, subdivision 10; and has set forth the reasons and supporting facts for each determination made in Sections 3.01 and 3.02 of Resolution No. 00-319 in writing, attached hereto as Exhibit A. This resolution and its Exhibit A supplements Resolution No. 00-319. 2. The Council ratifies and reaffirms the findings and conclusions of Resolution No. 00-319, authorizing the creation of the Tax Increment District and the Plan therefore. 12109.1. ORIGINAL eas a s sent enanav / ✓ ey os om ✓ o eman ams ✓ antry ✓ ei er � � Adopted by Council: Dare �.. .� 3_�_ _p Q-a Adoprion Cer[ified by Council Secretary By: �� . � t`� ��-----'__ " Approved by� Date � �� By: Requested by Departinent of: BY� � � / 7� Form Approved by City Attorney B �(�-`�^`�. � / / �f� � - � Approved by Mayor for Submission to Council BY� ��-P _� �I i � 1979238v1 The motion for the adoption of the foregoing resolution was duly seconded by Council member and upon a vote being taken thereon, the following voted in favor thereof: bo -d�9 and the following voted against the same: Dated: , 2000 Mayor (Seal) ATTEST: City Administrator 12109.1. ao-YIq St Paul Port Authority Ken JohnsonJLaurie Aansen On September 13, 2004 TOTAL B OF SIGNATURE PAGES 9/1/0 GREEN SHEET No1 il34 u�� u«^��- �^ T Yi ❑ �..,,�. � -� _ C ° �,�_ 9'S "°a ❑..�,�.� ❑..�.�,� �.,,��„�...� ❑ (CLIP Atl LOCATIONS FOR SIGNATUR� To ratify Resolution No. 00-319 with the findings previously made by the Port Authority, and which are necessary to tYce establishment of the Ta:: Increment District. PLANNING COMMISSION CIB COIdMIITEE CML SERVICE COMMISSION 3oard LSONAI SERVICE CONTRACIS MUSTMISWER 711E WLLOWING Q F�36 }hl6 P��m BV¢f MOIkCtl YfWBf 8 WlIFIBCf TOf MI6 C2p8l�IILIIC7 YFS No Fiastlws 0�� e�er heen a cd�lemDbYre� YE3 NO Does this persWfirm poaseae a slall not rwrmalbP�ed tY �Y �«� �Y emGbY�? vES nia �s m�. �im a�ea �e�wor+ rES No If has been deterr,�ined that Exhibit A cvhich was a#tached to the-- Citg's Resalutio;� Ne. 00-3 did not recite the appropriate findin�y necessary to the estabiishr�ent of the Ta�: Increrient ' DisYrict. Appropriate findings thaf the Tax Increr.�ent District ia in the publie interest end is a redevelopr�ent district 2re docur�ented appropriately. None. The nece�sar� finding:, establishing the Tax Increr.�ent Di�trict vaiA not be addressed. Twwsacrwrrs 13,220,000 T a:: Increr.ient ..� ..�. INFORMNiION (IXPWI� COST/REVENUE BUDfiETm (qRCLE ONE) ACTIVITY NUI�ER Levy rEa No �, • � SEP p 6 20UU � EXHIBIT A RESOLUTION # 00 -�Iq The reasons and facts supporting the findings for the adoption of the Great Northern Business Center - Phase I Tax Increment Financing District {the "Tax Increment District") as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as of April 5, 2000, and are as follows: l. Finding that the District is a"redevelopment district." This Tax Increment District is a redevelopment district because it is a portion of a project in which the following conditions, reasonably distributed throughout the district, exist: parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance, as more fully described below: A. The Project is the Maxson Steel/Dale Street Shops Industrial Redevelopment District established by the Poxt Authority of the City of Saint Paul, whose boundaries are larger than the boundaries of the Tax Increment District. B. The Tax Increment District consists of the following tax parcels: • Parcel 17 (consisting of 344,924 total square feet); • Parcel 130 (consisting of 188,666 total square fee); • Parcel 131 (consisting of 328,071 total square feet); and • Parcel 114 (consisting of approximately 55,231 total square feet). C. Prior to Cke creation of the Tax Increment District, parcels constituting 70& of the area of the Tax Increment District were occupied (at least 15% covered) by buildings, streets, utilities, or other improvements (collectively "Improvements"). These parcels and the areas covered by such improvements were as follows: • Parcel 17 - at least 80,674 square feet (22�) of this parcel was occupied by Improvements. • Parcel 130 - at least 75,428 square feet (40.3°s) of this parcel was occupied by Improvements. • Parcel 131 - at least 126,337 square feet (38.5�) of this parcel was occupied by Improvements. • Parcel 114 - at least 27,615 square feet (50%) of this parcel was occupied by Improvements. Parcels 17, 130, 131 and 114, each of which was at least 15� occupied by Improvements, consisted of 100g of the total area of the Tax Increment District. The Improvements were reasonably distributed throughout the Tax Increment Aistrict. D. Prior to its creation, the Tax Increment District contained 11 total buildings. Of these 11 buildings, the following seven were structurally substandard on [he basis of the size, type, and age for the following reasons: • Parcel 17 - One of the three steel framed buildings and the three-story office building on this parcel suffered from significant deferred maintenance and was old, outdated and fundamentally obsolete. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15& of the cost of constructing a new structure of the same square footage and type on the site. 19792i8v]. 3 oa -r�q • Parcel 131 - This parcel contained five buildings, none of which offered any contributory value, and had to be demolished. These buildings were not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15°s of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 130 - This parcel contained two steel framed buildings, one of which did not offer a contributory value, and had to be demolished. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 114 - This parcel contained no structures, but a substandard parking lot. "Structurally substandard" is understood to mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, in light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar £actors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be eacpected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be eJCpected to occur without the use of tax increment financing would be less than the increase in Che market value estimated to result from the proposed cZevelopment after subtracting the present va2ue of the projected tax increments for the maximum duration 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 market values both with and without estab].ishment of the Great Northern Business Center - Phase I Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to assist with tax increment were to occur in the Great Northern Business Center - Phase I site, the total increased market value would be up to $9,400,000. It is the Port Authority's finding that there would be no significant increase in the base market value expected to occur within 25 years without the use of tax increment financing. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of this District. 3. Finding that the Great Northern Business Center - Phase I Tax Increment Financing District conforms to Che general pZan for the deveZopment or redevelopment of the municipality as a whole. The Great Northern Business Center - Phase I Tax Increment Financing Plan has been reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the City. The general development plan for the City contemplates a light manufacturing use for the property in the Tax Increment District. 4. Finding that the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the community as a whole, for the development or redevelopment of the project by private enterprise. Private enterprise will occupy the facilities constructed in the Tax Increment District. 5. Finding that the municipal elects the method of t� increment computation set forth in Sectian 469,177, Subdivision 3, clause (b), if applicable. The election is applicable. The City did not elect to determine captured net tax capacity after excluding at the fiscal disparity ratio fiscal disparity commercial industrial net tax capacity increase. 1979238v1 q oa -d�9 PORT AUTHORITY OF THE CITY OF SAINT PAUL GREAT NORTHERN BUSINESS CENTER — PHASE I TAX INCREMENT FINANCING DISTRICT AND HA7ARDOUS SUBSTANCE SUBDTSTRICT REPRESENTATION OF PORT AUTHORITY The undersigned, being the Vice President of Redevelopment of the Port Authority of the City of Saint Paul (the "Port Authorit}�') hereby declares and represents, based on his knowledge of the facts and a review of the Port Authority's files, as follows: L He has been the Vice President of Redevelopment of the Port Authority since October 28, 1996, and during that time has been responsible for the work done by and on behalf of the Port Authority in connection with the creation of the MaYSOn SteeUDale Street Shops Industrial Development District (the "Aevelopment District"), and within the Development District, the Great Northem Business Center — Phase I Tas Increment Financing District and Hazardous Substance Subdistrict (the "Taa� Increment District"). 2. The Ta� Increment District consists of the foilowing tax parcels: • Parcel 17 (consisting of 344,924 total square feet); • Parcel 130 (consisting of 188,666 total square fee); • Parcel 131 (consisting of 328,071 total square feet); and • Parcel 114 (consisting of approximately 55,231 total square feet). 3. Prior to the creation of the Tax Increment District, parcels constituting 70% of the area of the Tax Tncrement District were occupied (at least 15% covered) by buildings, streets, utiliries, or other improvements (collectively "Improvements"). These parcels and the areas covered by such improvements were as follows: • Parcel 1? - at least 80,674 square feet (22%) of this parcel was occupied by Improvements. • Parcel 130 - at least 75,428 square feet (40.3%) of this parcel was occupied by Improvements. • Parcel 131 — at least 126,337 square feet (38.5°l0) of this parcel was occupied by Improvements. • Parcel 114 — at least 27,615 square feet (50%) of this parcel was occupled by Improvements. izio�.�. oa-t►q Parcels 17, 130, 131 and 114, each of which was at least 15% occupied by Improvemettfs, consisted of 100% of the total area of the T� Increment District. The Improvements were reasonably distributed throu�out the Tas Increment District. 4. In preparation for the creation of the Development District and the T� Increment District, the Port Authority retained Aahlen & Dwyer, Znc. to provide an appraisal of the area. This appraasal was delivered to the Port Authority on or about Ianuary 22, 1996. Based on information provided in this appraisal (which included an interior inspection of the buildings located in the Tax Tncrement District), and the Port Authority's staff inspecrion and analysis (including an interior inspection of the buildings located in the Tax Increment I}istrict), aC least 50% of the buildings in the Tas Increment District, not including outbuildings, were structurally substandard to a degree requiring substantial renovation or clearance, as more fully described in the succeeding paragraphs. 5. Prior to its creation, the Tax Increment District contained I1 total buildings. Of these 11 buildings, the following seven were shucturally substandard on the basis of the size, type, and age for the following reasons: • Parcel 17 — One of the three steel framed buildings and the three-story office building on this parcel suffered from significant deferred maintenance and was old, outdated and fundamentally obsolete. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of construcfing a new structure of the same square footage and type on the site. • Parcel 131 — This parcel contained five buildings, none of which offered any contributory value, and had to be demolished. These buildings were not in compliance with the building code applicable to new buildings, and could not be modified to safisfy the building code at a cost of less than ] 5% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 130 — This parcel contained two steel framed buildings, one of which did not offer a contributory value, and had to be demolished. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 114 — This parcel contained no shuctures, but a substandard parking lot. * Revise to reflect size and status of Pazcel 114 which was not coveied by Taauirie's mezno. 1983205v1 2 oc•P�q "Structurally substandard" is understood to mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, in light and ventilation, fire protection including adequate egress, layout and condirion of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 6. All of the buiidings that had previously been located in the Tax Increment District have been demolished by or under the conisol of the Port Authority, in preparation for the redevelopment of the Tas Increment District. 7. I am aware of the requirements for the establishment of the Tas Increment District as a redevelopment district, and believe, based on the above-mentioned appraisal, as well as my own review, including an interior inspection of the buildings previously located in the Tas Increment District, that the Tax Increment Dish meets those requirements. Dated: Septembe� 2000 1983205v1 3 PORT AUTHORITY OF THE CITY _� SAINT PAUL PORT AUTHORITY � .•• . , TO: FROM: BOARD OF COMMiSSIONERS (Regular Meeting of Ma� 28, 2000) Jill T. Tor�r'y John W. Yc Laurie J. H; Kenneth R. 00 - i'1' DA'I`E: March 24, 2000 SUB3ECT: Public Hearing - Great Northem Business Center — Phase I(Maxson Steel) TIF Plan �3 U Action Reauested Final approva{ of the Great Northem Business Center — Phase I Tax Increment Financing District. Backqround On May 27, 1997 the Board of Commissioners approved the crea6on of Maxson 5teel/Dale Street Shops Industrial Development District. The Great Northem Business Center has been suppoRed by the North End and Frogtown neighborhoods. The main focus of the Great Northem Business Center is to create light i�dusUial jobs at livable wages for residents and the maximum tax base in the area. The $9,400,000 of estimated new construction at the Great Northem Business Cenier — Phase I wouid not be expected to occur in the reasonabiy foreseeable fu4ure without the use of the tax increment fiinancing. No such devefopment or redevelopment has taken place at the site in recent years. Further, poifution found at the site necessitates the creation of the hazardous substance subdistriot to help pay the cost of remediation. The Port Authority has developed a redevelopment finance plan for the Great Northem Business Center — Phase i, which contains severai different funding sources, including tax increment financing. A summary of this projecYs sources and uses is incfuded as Appendix D. On February 22, 2000 the Board of Commissioners approved the transmittal of this plan to the City, Schoot District and Ramsey County. We also requested the City Council set a pubiic hearing for comment on this plan. The public hearing is set for April 5, 2000 at 3:30 PM. A substantialiy completed draft of the TIF plan is attached. ftecommendation We recommend fina! Financing Plan. LJH:ah approval of the Great Northem Business Center — Phase I Tax increment 9356.1. oo-P�9 ) Resolurion No. 3 g 26 RESOLUTION OF THE PORT AUTHORITY OF THE CTTY OF SAINT PAUL WHEREAS, on February 22, 20QQ, the Board of Commissioners of the Port Authority of the City of Saint Pau1 adopted its Resolution No. 3824 requesting that the Port Authority staff call for a public hearing to consider the establishment of the Great Northern Business Center - Phase I Tax Inerement Financing District (the "DistricY'), and authorizing the Part Authority staff to finalize the tax increment financing plan related thereto (the "Plan"); WHEREAS, Port Authority staff has now finalized the Plan and has held a pubiic hearing on Plan on March 28, 2000; and VJHEREAS, Port Authority staff has prepared a budget for land acquisition, construction of infrastructure nnprovements and other development necessary to establish an industrial park in the District (the "ProjecY'), and the sources of funds to be used to accomplish the same, all of which is set forth in the Plan; and WHEREAS, the Port Authority hereby determines that there has been no significant development or redevelopment in the Dish and, in the opinion of the Port Authority, the proposed development and redevelopment described in the Plan is not reasonably expected to occur solely through pzivate inveshnent within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary; and WHEREAS, the Port Authority further finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. WHEREAS, the Port Authority has performed all actions required by law to be performed prior to the estabIishment of the Dish including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jurisdiction over the property included in the Distriet), and the holding of a public hearing; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foflows: 1. The Plan is hereby approved and adopted, and shall be placed on file in the office of the Authority. tsoszsz�z pai,asoz!.DOC� oOrg� 1 2. The City and the Port Authority shall make a qualifying local contribution in � accordance with Minnesota Statutes, Section 273.1399, subdivision 6(d}, in order to qualify for exemption from state aid losses set forth in Section 273.1399, subdivision 6{c). 3. The Port Authority staff, along with the Port Authority's legal counsel, is hereby authorized and directed to proceed with the implementation of the Pian and for tYus puipose to negotiate and finalize all further plans, resolutions, documents and contracts necessary for this purpose. 4_ Port Authority staff is hereby authorized to forward a copy of the Plan to the Ramsey County Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes, Section 469.175, subd. 2. Adopted: March 2&, 2000 ATTEST: Tts 5ecret PORT AUTHORITY OF THE CITY OF SAINT PAUL B Y �AJ. (:t,._ ��. � Its Chair 9iD9 Z ) 00-8!°4 EXHIBIT A RESOLUTION # The reasons and facts supporting the findings for the adoption of the Great Northern Business Center - Phase I T� Increment Financing District as zequired pursuant to Miunesota Statutes, Secrion 469.175, Subdivision 3 aze as follows: 1. Finding that the Dutrict is a"redevelopment district. " This Tax Increment District is a redevelopment district because parcels consisting of 7'� percent of the area of the district aze occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, aze structurally substandard to a degree requiring substantial renovation or clearance. 2. Finding that the proposed develapment, in the opinion of the Port Authoriry, would not reasona8ly be erpected 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 ta�c increment fcnancing would be less than the increase in the market value estimated to result from the proposed development afier subtracting the present value of the projected tax increments for the mcuimum dura[ion of the clistrict permitted by fhe 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 tas inerement financing. A comparative analysis of estimated market values both with and without establishment of the Great Northem Business Center - Phase I Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to assist with t� inczement were to occur in the Great Northem Business Center - Phase I site, the total increased mazket value would be up to $9,400,Q00. It is the Port Authority's finding that the increased mazket value of the site that could reasonably be expected to occur within 25 years without the use of taY inerement financing, and after subtraeting the present value of the projected taY increments for the cluration of the proposed district, would be less than that amount. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general azea of this Distriet. 3. Finding that the Great Northern Business Center - Phase I Tcu Incremenr Financing District conforms to the general plan for fhe development or redevelopmeni of the municipality as a whole. 9509 3 • . ,h c�o - d' 1'� The Great Northem Business Center - Phase T Tax Increment Financing Plan has been � reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the Ciry. 4. Finding that the establishment of ihe Great Northern Bzuiness Center - Phase I Tax Increment Financing Dissrict for will af�ord n:axirnum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the project by private enterprise. , 9509 4 Council FSIe # O V � ,q OR1GII�AL Presented by: Referred To Green Sheet # 101334 RESOLUTION CITY.OF SAINT PAUL, MINNESOTA � l ; � . Committee Date RSSOLIITION SIIPPLEI�NTING CITY COIINCIL RfiSOLIITION NO. 00-319 BE IT RESOLVED by the City Council (the ^COUncil"J of the City of Saint Paul, Minnesota (the "City"), as follows: WHEREAS, the Port Authority of the City of Saint Paul (the "POrt Authority") has previously adopted its (a) Resolution 3629, on May 27, 1997 to establish the Maxson Steel/Dale Street Shops 2 Industrial Development District in the City of Saint Paul; and (b) its Resolution No. 3826, on March 28, 2000 establishing the Great Northern Business Center - Phase I Tax Increment Financing District and Hazardous 5ubstance Subdistrict (the "Tax Increment District"), and approving the Tax Increment Financing Plan (the "Plan") therefore; and WHEREAS, the City has previously adopted its Resolution No. 00-319 on April 5, 2000 authorizing the creation of the Tax Increment District and the adoption of the Plan, all in conformity with applicable law; and WHEREAS, it has been determined that the Exhibit A which was attached to the City's Resolution No. 00-319 was incorrect, and did not set forth in desirable detail the reasons and supporting facts for the findings that the City made that had previously been made by the Port Authority, and which are necessary to the establishment of the Tax Increment District; and WHEREAS, the City desires to ratify its prior decision relating to the creation of the Tax Increment District, after setting forth the reasons and supporting facts in desirable detail.. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Pau1, Minnesota as follows: 1. The Council hereby finds triat the Tax Increment District is in the public interest and is a"redevelopment district" under Minnesota Statutes, 3ection 469.174, subdivision 10; and has set forth the reasons and supporting facts for each determination made in Sections 3.01 and 3.02 of Resolution No. 00-319 in writing, attached hereto as Exhibit A. This resolution and its Exhibit A supplements Resolution No. 00-319. 2. The Council ratifies and reaffirms the findings and conclusions of Resolution No. 00-319, authorizing the creation of the Tax Increment District and the Plan therefore. 12109.1. ORIGINAL eas a s sent enanav / ✓ ey os om ✓ o eman ams ✓ antry ✓ ei er � � Adopted by Council: Dare �.. .� 3_�_ _p Q-a Adoprion Cer[ified by Council Secretary By: �� . � t`� ��-----'__ " Approved by� Date � �� By: Requested by Departinent of: BY� � � / 7� Form Approved by City Attorney B �(�-`�^`�. � / / �f� � - � Approved by Mayor for Submission to Council BY� ��-P _� �I i � 1979238v1 The motion for the adoption of the foregoing resolution was duly seconded by Council member and upon a vote being taken thereon, the following voted in favor thereof: bo -d�9 and the following voted against the same: Dated: , 2000 Mayor (Seal) ATTEST: City Administrator 12109.1. ao-YIq St Paul Port Authority Ken JohnsonJLaurie Aansen On September 13, 2004 TOTAL B OF SIGNATURE PAGES 9/1/0 GREEN SHEET No1 il34 u�� u«^��- �^ T Yi ❑ �..,,�. � -� _ C ° �,�_ 9'S "°a ❑..�,�.� ❑..�.�,� �.,,��„�...� ❑ (CLIP Atl LOCATIONS FOR SIGNATUR� To ratify Resolution No. 00-319 with the findings previously made by the Port Authority, and which are necessary to tYce establishment of the Ta:: Increment District. PLANNING COMMISSION CIB COIdMIITEE CML SERVICE COMMISSION 3oard LSONAI SERVICE CONTRACIS MUSTMISWER 711E WLLOWING Q F�36 }hl6 P��m BV¢f MOIkCtl YfWBf 8 WlIFIBCf TOf MI6 C2p8l�IILIIC7 YFS No Fiastlws 0�� e�er heen a cd�lemDbYre� YE3 NO Does this persWfirm poaseae a slall not rwrmalbP�ed tY �Y �«� �Y emGbY�? vES nia �s m�. �im a�ea �e�wor+ rES No If has been deterr,�ined that Exhibit A cvhich was a#tached to the-- Citg's Resalutio;� Ne. 00-3 did not recite the appropriate findin�y necessary to the estabiishr�ent of the Ta�: Increrient ' DisYrict. Appropriate findings thaf the Tax Increr.�ent District ia in the publie interest end is a redevelopr�ent district 2re docur�ented appropriately. None. The nece�sar� finding:, establishing the Tax Increr.�ent Di�trict vaiA not be addressed. Twwsacrwrrs 13,220,000 T a:: Increr.ient ..� ..�. INFORMNiION (IXPWI� COST/REVENUE BUDfiETm (qRCLE ONE) ACTIVITY NUI�ER Levy rEa No �, • � SEP p 6 20UU � EXHIBIT A RESOLUTION # 00 -�Iq The reasons and facts supporting the findings for the adoption of the Great Northern Business Center - Phase I Tax Increment Financing District {the "Tax Increment District") as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as of April 5, 2000, and are as follows: l. Finding that the District is a"redevelopment district." This Tax Increment District is a redevelopment district because it is a portion of a project in which the following conditions, reasonably distributed throughout the district, exist: parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance, as more fully described below: A. The Project is the Maxson Steel/Dale Street Shops Industrial Redevelopment District established by the Poxt Authority of the City of Saint Paul, whose boundaries are larger than the boundaries of the Tax Increment District. B. The Tax Increment District consists of the following tax parcels: • Parcel 17 (consisting of 344,924 total square feet); • Parcel 130 (consisting of 188,666 total square fee); • Parcel 131 (consisting of 328,071 total square feet); and • Parcel 114 (consisting of approximately 55,231 total square feet). C. Prior to Cke creation of the Tax Increment District, parcels constituting 70& of the area of the Tax Increment District were occupied (at least 15% covered) by buildings, streets, utilities, or other improvements (collectively "Improvements"). These parcels and the areas covered by such improvements were as follows: • Parcel 17 - at least 80,674 square feet (22�) of this parcel was occupied by Improvements. • Parcel 130 - at least 75,428 square feet (40.3°s) of this parcel was occupied by Improvements. • Parcel 131 - at least 126,337 square feet (38.5�) of this parcel was occupied by Improvements. • Parcel 114 - at least 27,615 square feet (50%) of this parcel was occupied by Improvements. Parcels 17, 130, 131 and 114, each of which was at least 15� occupied by Improvements, consisted of 100g of the total area of the Tax Increment District. The Improvements were reasonably distributed throughout the Tax Increment Aistrict. D. Prior to its creation, the Tax Increment District contained 11 total buildings. Of these 11 buildings, the following seven were structurally substandard on [he basis of the size, type, and age for the following reasons: • Parcel 17 - One of the three steel framed buildings and the three-story office building on this parcel suffered from significant deferred maintenance and was old, outdated and fundamentally obsolete. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15& of the cost of constructing a new structure of the same square footage and type on the site. 19792i8v]. 3 oa -r�q • Parcel 131 - This parcel contained five buildings, none of which offered any contributory value, and had to be demolished. These buildings were not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15°s of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 130 - This parcel contained two steel framed buildings, one of which did not offer a contributory value, and had to be demolished. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 114 - This parcel contained no structures, but a substandard parking lot. "Structurally substandard" is understood to mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, in light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar £actors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be eacpected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be eJCpected to occur without the use of tax increment financing would be less than the increase in Che market value estimated to result from the proposed cZevelopment after subtracting the present va2ue of the projected tax increments for the maximum duration 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 market values both with and without estab].ishment of the Great Northern Business Center - Phase I Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to assist with tax increment were to occur in the Great Northern Business Center - Phase I site, the total increased market value would be up to $9,400,000. It is the Port Authority's finding that there would be no significant increase in the base market value expected to occur within 25 years without the use of tax increment financing. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of this District. 3. Finding that the Great Northern Business Center - Phase I Tax Increment Financing District conforms to Che general pZan for the deveZopment or redevelopment of the municipality as a whole. The Great Northern Business Center - Phase I Tax Increment Financing Plan has been reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the City. The general development plan for the City contemplates a light manufacturing use for the property in the Tax Increment District. 4. Finding that the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the community as a whole, for the development or redevelopment of the project by private enterprise. Private enterprise will occupy the facilities constructed in the Tax Increment District. 5. Finding that the municipal elects the method of t� increment computation set forth in Sectian 469,177, Subdivision 3, clause (b), if applicable. The election is applicable. The City did not elect to determine captured net tax capacity after excluding at the fiscal disparity ratio fiscal disparity commercial industrial net tax capacity increase. 1979238v1 q oa -d�9 PORT AUTHORITY OF THE CITY OF SAINT PAUL GREAT NORTHERN BUSINESS CENTER — PHASE I TAX INCREMENT FINANCING DISTRICT AND HA7ARDOUS SUBSTANCE SUBDTSTRICT REPRESENTATION OF PORT AUTHORITY The undersigned, being the Vice President of Redevelopment of the Port Authority of the City of Saint Paul (the "Port Authorit}�') hereby declares and represents, based on his knowledge of the facts and a review of the Port Authority's files, as follows: L He has been the Vice President of Redevelopment of the Port Authority since October 28, 1996, and during that time has been responsible for the work done by and on behalf of the Port Authority in connection with the creation of the MaYSOn SteeUDale Street Shops Industrial Development District (the "Aevelopment District"), and within the Development District, the Great Northem Business Center — Phase I Tas Increment Financing District and Hazardous Substance Subdistrict (the "Taa� Increment District"). 2. The Ta� Increment District consists of the foilowing tax parcels: • Parcel 17 (consisting of 344,924 total square feet); • Parcel 130 (consisting of 188,666 total square fee); • Parcel 131 (consisting of 328,071 total square feet); and • Parcel 114 (consisting of approximately 55,231 total square feet). 3. Prior to the creation of the Tax Increment District, parcels constituting 70% of the area of the Tax Tncrement District were occupied (at least 15% covered) by buildings, streets, utiliries, or other improvements (collectively "Improvements"). These parcels and the areas covered by such improvements were as follows: • Parcel 1? - at least 80,674 square feet (22%) of this parcel was occupied by Improvements. • Parcel 130 - at least 75,428 square feet (40.3%) of this parcel was occupied by Improvements. • Parcel 131 — at least 126,337 square feet (38.5°l0) of this parcel was occupied by Improvements. • Parcel 114 — at least 27,615 square feet (50%) of this parcel was occupled by Improvements. izio�.�. oa-t►q Parcels 17, 130, 131 and 114, each of which was at least 15% occupied by Improvemettfs, consisted of 100% of the total area of the T� Increment District. The Improvements were reasonably distributed throu�out the Tas Increment District. 4. In preparation for the creation of the Development District and the T� Increment District, the Port Authority retained Aahlen & Dwyer, Znc. to provide an appraisal of the area. This appraasal was delivered to the Port Authority on or about Ianuary 22, 1996. Based on information provided in this appraisal (which included an interior inspection of the buildings located in the Tax Tncrement District), and the Port Authority's staff inspecrion and analysis (including an interior inspection of the buildings located in the Tax Increment I}istrict), aC least 50% of the buildings in the Tas Increment District, not including outbuildings, were structurally substandard to a degree requiring substantial renovation or clearance, as more fully described in the succeeding paragraphs. 5. Prior to its creation, the Tax Increment District contained I1 total buildings. Of these 11 buildings, the following seven were shucturally substandard on the basis of the size, type, and age for the following reasons: • Parcel 17 — One of the three steel framed buildings and the three-story office building on this parcel suffered from significant deferred maintenance and was old, outdated and fundamentally obsolete. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of construcfing a new structure of the same square footage and type on the site. • Parcel 131 — This parcel contained five buildings, none of which offered any contributory value, and had to be demolished. These buildings were not in compliance with the building code applicable to new buildings, and could not be modified to safisfy the building code at a cost of less than ] 5% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 130 — This parcel contained two steel framed buildings, one of which did not offer a contributory value, and had to be demolished. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 114 — This parcel contained no shuctures, but a substandard parking lot. * Revise to reflect size and status of Pazcel 114 which was not coveied by Taauirie's mezno. 1983205v1 2 oc•P�q "Structurally substandard" is understood to mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, in light and ventilation, fire protection including adequate egress, layout and condirion of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 6. All of the buiidings that had previously been located in the Tax Increment District have been demolished by or under the conisol of the Port Authority, in preparation for the redevelopment of the Tas Increment District. 7. I am aware of the requirements for the establishment of the Tas Increment District as a redevelopment district, and believe, based on the above-mentioned appraisal, as well as my own review, including an interior inspection of the buildings previously located in the Tas Increment District, that the Tax Increment Dish meets those requirements. Dated: Septembe� 2000 1983205v1 3 PORT AUTHORITY OF THE CITY _� SAINT PAUL PORT AUTHORITY � .•• . , TO: FROM: BOARD OF COMMiSSIONERS (Regular Meeting of Ma� 28, 2000) Jill T. Tor�r'y John W. Yc Laurie J. H; Kenneth R. 00 - i'1' DA'I`E: March 24, 2000 SUB3ECT: Public Hearing - Great Northem Business Center — Phase I(Maxson Steel) TIF Plan �3 U Action Reauested Final approva{ of the Great Northem Business Center — Phase I Tax Increment Financing District. Backqround On May 27, 1997 the Board of Commissioners approved the crea6on of Maxson 5teel/Dale Street Shops Industrial Development District. The Great Northem Business Center has been suppoRed by the North End and Frogtown neighborhoods. The main focus of the Great Northem Business Center is to create light i�dusUial jobs at livable wages for residents and the maximum tax base in the area. The $9,400,000 of estimated new construction at the Great Northem Business Cenier — Phase I wouid not be expected to occur in the reasonabiy foreseeable fu4ure without the use of the tax increment fiinancing. No such devefopment or redevelopment has taken place at the site in recent years. Further, poifution found at the site necessitates the creation of the hazardous substance subdistriot to help pay the cost of remediation. The Port Authority has developed a redevelopment finance plan for the Great Northem Business Center — Phase i, which contains severai different funding sources, including tax increment financing. A summary of this projecYs sources and uses is incfuded as Appendix D. On February 22, 2000 the Board of Commissioners approved the transmittal of this plan to the City, Schoot District and Ramsey County. We also requested the City Council set a pubiic hearing for comment on this plan. The public hearing is set for April 5, 2000 at 3:30 PM. A substantialiy completed draft of the TIF plan is attached. ftecommendation We recommend fina! Financing Plan. LJH:ah approval of the Great Northem Business Center — Phase I Tax increment 9356.1. oo-P�9 ) Resolurion No. 3 g 26 RESOLUTION OF THE PORT AUTHORITY OF THE CTTY OF SAINT PAUL WHEREAS, on February 22, 20QQ, the Board of Commissioners of the Port Authority of the City of Saint Pau1 adopted its Resolution No. 3824 requesting that the Port Authority staff call for a public hearing to consider the establishment of the Great Northern Business Center - Phase I Tax Inerement Financing District (the "DistricY'), and authorizing the Part Authority staff to finalize the tax increment financing plan related thereto (the "Plan"); WHEREAS, Port Authority staff has now finalized the Plan and has held a pubiic hearing on Plan on March 28, 2000; and VJHEREAS, Port Authority staff has prepared a budget for land acquisition, construction of infrastructure nnprovements and other development necessary to establish an industrial park in the District (the "ProjecY'), and the sources of funds to be used to accomplish the same, all of which is set forth in the Plan; and WHEREAS, the Port Authority hereby determines that there has been no significant development or redevelopment in the Dish and, in the opinion of the Port Authority, the proposed development and redevelopment described in the Plan is not reasonably expected to occur solely through pzivate inveshnent within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary; and WHEREAS, the Port Authority further finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. WHEREAS, the Port Authority has performed all actions required by law to be performed prior to the estabIishment of the Dish including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jurisdiction over the property included in the Distriet), and the holding of a public hearing; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foflows: 1. The Plan is hereby approved and adopted, and shall be placed on file in the office of the Authority. tsoszsz�z pai,asoz!.DOC� oOrg� 1 2. The City and the Port Authority shall make a qualifying local contribution in � accordance with Minnesota Statutes, Section 273.1399, subdivision 6(d}, in order to qualify for exemption from state aid losses set forth in Section 273.1399, subdivision 6{c). 3. The Port Authority staff, along with the Port Authority's legal counsel, is hereby authorized and directed to proceed with the implementation of the Pian and for tYus puipose to negotiate and finalize all further plans, resolutions, documents and contracts necessary for this purpose. 4_ Port Authority staff is hereby authorized to forward a copy of the Plan to the Ramsey County Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes, Section 469.175, subd. 2. Adopted: March 2&, 2000 ATTEST: Tts 5ecret PORT AUTHORITY OF THE CITY OF SAINT PAUL B Y �AJ. (:t,._ ��. � Its Chair 9iD9 Z ) 00-8!°4 EXHIBIT A RESOLUTION # The reasons and facts supporting the findings for the adoption of the Great Northern Business Center - Phase I T� Increment Financing District as zequired pursuant to Miunesota Statutes, Secrion 469.175, Subdivision 3 aze as follows: 1. Finding that the Dutrict is a"redevelopment district. " This Tax Increment District is a redevelopment district because parcels consisting of 7'� percent of the area of the district aze occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, aze structurally substandard to a degree requiring substantial renovation or clearance. 2. Finding that the proposed develapment, in the opinion of the Port Authoriry, would not reasona8ly be erpected 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 ta�c increment fcnancing would be less than the increase in the market value estimated to result from the proposed development afier subtracting the present value of the projected tax increments for the mcuimum dura[ion of the clistrict permitted by fhe 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 tas inerement financing. A comparative analysis of estimated market values both with and without establishment of the Great Northem Business Center - Phase I Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to assist with t� inczement were to occur in the Great Northem Business Center - Phase I site, the total increased mazket value would be up to $9,400,Q00. It is the Port Authority's finding that the increased mazket value of the site that could reasonably be expected to occur within 25 years without the use of taY inerement financing, and after subtraeting the present value of the projected taY increments for the cluration of the proposed district, would be less than that amount. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general azea of this Distriet. 3. Finding that the Great Northern Business Center - Phase I Tcu Incremenr Financing District conforms to the general plan for fhe development or redevelopmeni of the municipality as a whole. 9509 3 • . ,h c�o - d' 1'� The Great Northem Business Center - Phase T Tax Increment Financing Plan has been � reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the Ciry. 4. Finding that the establishment of ihe Great Northern Bzuiness Center - Phase I Tax Increment Financing Dissrict for will af�ord n:axirnum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the project by private enterprise. , 9509 4 Council FSIe # O V � ,q OR1GII�AL Presented by: Referred To Green Sheet # 101334 RESOLUTION CITY.OF SAINT PAUL, MINNESOTA � l ; � . Committee Date RSSOLIITION SIIPPLEI�NTING CITY COIINCIL RfiSOLIITION NO. 00-319 BE IT RESOLVED by the City Council (the ^COUncil"J of the City of Saint Paul, Minnesota (the "City"), as follows: WHEREAS, the Port Authority of the City of Saint Paul (the "POrt Authority") has previously adopted its (a) Resolution 3629, on May 27, 1997 to establish the Maxson Steel/Dale Street Shops 2 Industrial Development District in the City of Saint Paul; and (b) its Resolution No. 3826, on March 28, 2000 establishing the Great Northern Business Center - Phase I Tax Increment Financing District and Hazardous 5ubstance Subdistrict (the "Tax Increment District"), and approving the Tax Increment Financing Plan (the "Plan") therefore; and WHEREAS, the City has previously adopted its Resolution No. 00-319 on April 5, 2000 authorizing the creation of the Tax Increment District and the adoption of the Plan, all in conformity with applicable law; and WHEREAS, it has been determined that the Exhibit A which was attached to the City's Resolution No. 00-319 was incorrect, and did not set forth in desirable detail the reasons and supporting facts for the findings that the City made that had previously been made by the Port Authority, and which are necessary to the establishment of the Tax Increment District; and WHEREAS, the City desires to ratify its prior decision relating to the creation of the Tax Increment District, after setting forth the reasons and supporting facts in desirable detail.. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Pau1, Minnesota as follows: 1. The Council hereby finds triat the Tax Increment District is in the public interest and is a"redevelopment district" under Minnesota Statutes, 3ection 469.174, subdivision 10; and has set forth the reasons and supporting facts for each determination made in Sections 3.01 and 3.02 of Resolution No. 00-319 in writing, attached hereto as Exhibit A. This resolution and its Exhibit A supplements Resolution No. 00-319. 2. The Council ratifies and reaffirms the findings and conclusions of Resolution No. 00-319, authorizing the creation of the Tax Increment District and the Plan therefore. 12109.1. ORIGINAL eas a s sent enanav / ✓ ey os om ✓ o eman ams ✓ antry ✓ ei er � � Adopted by Council: Dare �.. .� 3_�_ _p Q-a Adoprion Cer[ified by Council Secretary By: �� . � t`� ��-----'__ " Approved by� Date � �� By: Requested by Departinent of: BY� � � / 7� Form Approved by City Attorney B �(�-`�^`�. � / / �f� � - � Approved by Mayor for Submission to Council BY� ��-P _� �I i � 1979238v1 The motion for the adoption of the foregoing resolution was duly seconded by Council member and upon a vote being taken thereon, the following voted in favor thereof: bo -d�9 and the following voted against the same: Dated: , 2000 Mayor (Seal) ATTEST: City Administrator 12109.1. ao-YIq St Paul Port Authority Ken JohnsonJLaurie Aansen On September 13, 2004 TOTAL B OF SIGNATURE PAGES 9/1/0 GREEN SHEET No1 il34 u�� u«^��- �^ T Yi ❑ �..,,�. � -� _ C ° �,�_ 9'S "°a ❑..�,�.� ❑..�.�,� �.,,��„�...� ❑ (CLIP Atl LOCATIONS FOR SIGNATUR� To ratify Resolution No. 00-319 with the findings previously made by the Port Authority, and which are necessary to tYce establishment of the Ta:: Increment District. PLANNING COMMISSION CIB COIdMIITEE CML SERVICE COMMISSION 3oard LSONAI SERVICE CONTRACIS MUSTMISWER 711E WLLOWING Q F�36 }hl6 P��m BV¢f MOIkCtl YfWBf 8 WlIFIBCf TOf MI6 C2p8l�IILIIC7 YFS No Fiastlws 0�� e�er heen a cd�lemDbYre� YE3 NO Does this persWfirm poaseae a slall not rwrmalbP�ed tY �Y �«� �Y emGbY�? vES nia �s m�. �im a�ea �e�wor+ rES No If has been deterr,�ined that Exhibit A cvhich was a#tached to the-- Citg's Resalutio;� Ne. 00-3 did not recite the appropriate findin�y necessary to the estabiishr�ent of the Ta�: Increrient ' DisYrict. Appropriate findings thaf the Tax Increr.�ent District ia in the publie interest end is a redevelopr�ent district 2re docur�ented appropriately. None. The nece�sar� finding:, establishing the Tax Increr.�ent Di�trict vaiA not be addressed. Twwsacrwrrs 13,220,000 T a:: Increr.ient ..� ..�. INFORMNiION (IXPWI� COST/REVENUE BUDfiETm (qRCLE ONE) ACTIVITY NUI�ER Levy rEa No �, • � SEP p 6 20UU � EXHIBIT A RESOLUTION # 00 -�Iq The reasons and facts supporting the findings for the adoption of the Great Northern Business Center - Phase I Tax Increment Financing District {the "Tax Increment District") as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as of April 5, 2000, and are as follows: l. Finding that the District is a"redevelopment district." This Tax Increment District is a redevelopment district because it is a portion of a project in which the following conditions, reasonably distributed throughout the district, exist: parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance, as more fully described below: A. The Project is the Maxson Steel/Dale Street Shops Industrial Redevelopment District established by the Poxt Authority of the City of Saint Paul, whose boundaries are larger than the boundaries of the Tax Increment District. B. The Tax Increment District consists of the following tax parcels: • Parcel 17 (consisting of 344,924 total square feet); • Parcel 130 (consisting of 188,666 total square fee); • Parcel 131 (consisting of 328,071 total square feet); and • Parcel 114 (consisting of approximately 55,231 total square feet). C. Prior to Cke creation of the Tax Increment District, parcels constituting 70& of the area of the Tax Increment District were occupied (at least 15% covered) by buildings, streets, utilities, or other improvements (collectively "Improvements"). These parcels and the areas covered by such improvements were as follows: • Parcel 17 - at least 80,674 square feet (22�) of this parcel was occupied by Improvements. • Parcel 130 - at least 75,428 square feet (40.3°s) of this parcel was occupied by Improvements. • Parcel 131 - at least 126,337 square feet (38.5�) of this parcel was occupied by Improvements. • Parcel 114 - at least 27,615 square feet (50%) of this parcel was occupied by Improvements. Parcels 17, 130, 131 and 114, each of which was at least 15� occupied by Improvements, consisted of 100g of the total area of the Tax Increment District. The Improvements were reasonably distributed throughout the Tax Increment Aistrict. D. Prior to its creation, the Tax Increment District contained 11 total buildings. Of these 11 buildings, the following seven were structurally substandard on [he basis of the size, type, and age for the following reasons: • Parcel 17 - One of the three steel framed buildings and the three-story office building on this parcel suffered from significant deferred maintenance and was old, outdated and fundamentally obsolete. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15& of the cost of constructing a new structure of the same square footage and type on the site. 19792i8v]. 3 oa -r�q • Parcel 131 - This parcel contained five buildings, none of which offered any contributory value, and had to be demolished. These buildings were not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15°s of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 130 - This parcel contained two steel framed buildings, one of which did not offer a contributory value, and had to be demolished. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 114 - This parcel contained no structures, but a substandard parking lot. "Structurally substandard" is understood to mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, in light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar £actors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be eacpected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be eJCpected to occur without the use of tax increment financing would be less than the increase in Che market value estimated to result from the proposed cZevelopment after subtracting the present va2ue of the projected tax increments for the maximum duration 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 market values both with and without estab].ishment of the Great Northern Business Center - Phase I Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to assist with tax increment were to occur in the Great Northern Business Center - Phase I site, the total increased market value would be up to $9,400,000. It is the Port Authority's finding that there would be no significant increase in the base market value expected to occur within 25 years without the use of tax increment financing. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of this District. 3. Finding that the Great Northern Business Center - Phase I Tax Increment Financing District conforms to Che general pZan for the deveZopment or redevelopment of the municipality as a whole. The Great Northern Business Center - Phase I Tax Increment Financing Plan has been reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the City. The general development plan for the City contemplates a light manufacturing use for the property in the Tax Increment District. 4. Finding that the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the community as a whole, for the development or redevelopment of the project by private enterprise. Private enterprise will occupy the facilities constructed in the Tax Increment District. 5. Finding that the municipal elects the method of t� increment computation set forth in Sectian 469,177, Subdivision 3, clause (b), if applicable. The election is applicable. The City did not elect to determine captured net tax capacity after excluding at the fiscal disparity ratio fiscal disparity commercial industrial net tax capacity increase. 1979238v1 q oa -d�9 PORT AUTHORITY OF THE CITY OF SAINT PAUL GREAT NORTHERN BUSINESS CENTER — PHASE I TAX INCREMENT FINANCING DISTRICT AND HA7ARDOUS SUBSTANCE SUBDTSTRICT REPRESENTATION OF PORT AUTHORITY The undersigned, being the Vice President of Redevelopment of the Port Authority of the City of Saint Paul (the "Port Authorit}�') hereby declares and represents, based on his knowledge of the facts and a review of the Port Authority's files, as follows: L He has been the Vice President of Redevelopment of the Port Authority since October 28, 1996, and during that time has been responsible for the work done by and on behalf of the Port Authority in connection with the creation of the MaYSOn SteeUDale Street Shops Industrial Development District (the "Aevelopment District"), and within the Development District, the Great Northem Business Center — Phase I Tas Increment Financing District and Hazardous Substance Subdistrict (the "Taa� Increment District"). 2. The Ta� Increment District consists of the foilowing tax parcels: • Parcel 17 (consisting of 344,924 total square feet); • Parcel 130 (consisting of 188,666 total square fee); • Parcel 131 (consisting of 328,071 total square feet); and • Parcel 114 (consisting of approximately 55,231 total square feet). 3. Prior to the creation of the Tax Increment District, parcels constituting 70% of the area of the Tax Tncrement District were occupied (at least 15% covered) by buildings, streets, utiliries, or other improvements (collectively "Improvements"). These parcels and the areas covered by such improvements were as follows: • Parcel 1? - at least 80,674 square feet (22%) of this parcel was occupied by Improvements. • Parcel 130 - at least 75,428 square feet (40.3%) of this parcel was occupied by Improvements. • Parcel 131 — at least 126,337 square feet (38.5°l0) of this parcel was occupied by Improvements. • Parcel 114 — at least 27,615 square feet (50%) of this parcel was occupled by Improvements. izio�.�. oa-t►q Parcels 17, 130, 131 and 114, each of which was at least 15% occupied by Improvemettfs, consisted of 100% of the total area of the T� Increment District. The Improvements were reasonably distributed throu�out the Tas Increment District. 4. In preparation for the creation of the Development District and the T� Increment District, the Port Authority retained Aahlen & Dwyer, Znc. to provide an appraisal of the area. This appraasal was delivered to the Port Authority on or about Ianuary 22, 1996. Based on information provided in this appraisal (which included an interior inspection of the buildings located in the Tax Tncrement District), and the Port Authority's staff inspecrion and analysis (including an interior inspection of the buildings located in the Tax Increment I}istrict), aC least 50% of the buildings in the Tas Increment District, not including outbuildings, were structurally substandard to a degree requiring substantial renovation or clearance, as more fully described in the succeeding paragraphs. 5. Prior to its creation, the Tax Increment District contained I1 total buildings. Of these 11 buildings, the following seven were shucturally substandard on the basis of the size, type, and age for the following reasons: • Parcel 17 — One of the three steel framed buildings and the three-story office building on this parcel suffered from significant deferred maintenance and was old, outdated and fundamentally obsolete. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of construcfing a new structure of the same square footage and type on the site. • Parcel 131 — This parcel contained five buildings, none of which offered any contributory value, and had to be demolished. These buildings were not in compliance with the building code applicable to new buildings, and could not be modified to safisfy the building code at a cost of less than ] 5% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 130 — This parcel contained two steel framed buildings, one of which did not offer a contributory value, and had to be demolished. This building was not in compliance with the building code applicable to new buildings, and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the site. • Parcel 114 — This parcel contained no shuctures, but a substandard parking lot. * Revise to reflect size and status of Pazcel 114 which was not coveied by Taauirie's mezno. 1983205v1 2 oc•P�q "Structurally substandard" is understood to mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, in light and ventilation, fire protection including adequate egress, layout and condirion of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. 6. All of the buiidings that had previously been located in the Tax Increment District have been demolished by or under the conisol of the Port Authority, in preparation for the redevelopment of the Tas Increment District. 7. I am aware of the requirements for the establishment of the Tas Increment District as a redevelopment district, and believe, based on the above-mentioned appraisal, as well as my own review, including an interior inspection of the buildings previously located in the Tas Increment District, that the Tax Increment Dish meets those requirements. Dated: Septembe� 2000 1983205v1 3 PORT AUTHORITY OF THE CITY _� SAINT PAUL PORT AUTHORITY � .•• . , TO: FROM: BOARD OF COMMiSSIONERS (Regular Meeting of Ma� 28, 2000) Jill T. Tor�r'y John W. Yc Laurie J. H; Kenneth R. 00 - i'1' DA'I`E: March 24, 2000 SUB3ECT: Public Hearing - Great Northem Business Center — Phase I(Maxson Steel) TIF Plan �3 U Action Reauested Final approva{ of the Great Northem Business Center — Phase I Tax Increment Financing District. Backqround On May 27, 1997 the Board of Commissioners approved the crea6on of Maxson 5teel/Dale Street Shops Industrial Development District. The Great Northem Business Center has been suppoRed by the North End and Frogtown neighborhoods. The main focus of the Great Northem Business Center is to create light i�dusUial jobs at livable wages for residents and the maximum tax base in the area. The $9,400,000 of estimated new construction at the Great Northem Business Cenier — Phase I wouid not be expected to occur in the reasonabiy foreseeable fu4ure without the use of the tax increment fiinancing. No such devefopment or redevelopment has taken place at the site in recent years. Further, poifution found at the site necessitates the creation of the hazardous substance subdistriot to help pay the cost of remediation. The Port Authority has developed a redevelopment finance plan for the Great Northem Business Center — Phase i, which contains severai different funding sources, including tax increment financing. A summary of this projecYs sources and uses is incfuded as Appendix D. On February 22, 2000 the Board of Commissioners approved the transmittal of this plan to the City, Schoot District and Ramsey County. We also requested the City Council set a pubiic hearing for comment on this plan. The public hearing is set for April 5, 2000 at 3:30 PM. A substantialiy completed draft of the TIF plan is attached. ftecommendation We recommend fina! Financing Plan. LJH:ah approval of the Great Northem Business Center — Phase I Tax increment 9356.1. oo-P�9 ) Resolurion No. 3 g 26 RESOLUTION OF THE PORT AUTHORITY OF THE CTTY OF SAINT PAUL WHEREAS, on February 22, 20QQ, the Board of Commissioners of the Port Authority of the City of Saint Pau1 adopted its Resolution No. 3824 requesting that the Port Authority staff call for a public hearing to consider the establishment of the Great Northern Business Center - Phase I Tax Inerement Financing District (the "DistricY'), and authorizing the Part Authority staff to finalize the tax increment financing plan related thereto (the "Plan"); WHEREAS, Port Authority staff has now finalized the Plan and has held a pubiic hearing on Plan on March 28, 2000; and VJHEREAS, Port Authority staff has prepared a budget for land acquisition, construction of infrastructure nnprovements and other development necessary to establish an industrial park in the District (the "ProjecY'), and the sources of funds to be used to accomplish the same, all of which is set forth in the Plan; and WHEREAS, the Port Authority hereby determines that there has been no significant development or redevelopment in the Dish and, in the opinion of the Port Authority, the proposed development and redevelopment described in the Plan is not reasonably expected to occur solely through pzivate inveshnent within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary; and WHEREAS, the Port Authority further finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. WHEREAS, the Port Authority has performed all actions required by law to be performed prior to the estabIishment of the Dish including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jurisdiction over the property included in the Distriet), and the holding of a public hearing; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foflows: 1. The Plan is hereby approved and adopted, and shall be placed on file in the office of the Authority. tsoszsz�z pai,asoz!.DOC� oOrg� 1 2. The City and the Port Authority shall make a qualifying local contribution in � accordance with Minnesota Statutes, Section 273.1399, subdivision 6(d}, in order to qualify for exemption from state aid losses set forth in Section 273.1399, subdivision 6{c). 3. The Port Authority staff, along with the Port Authority's legal counsel, is hereby authorized and directed to proceed with the implementation of the Pian and for tYus puipose to negotiate and finalize all further plans, resolutions, documents and contracts necessary for this purpose. 4_ Port Authority staff is hereby authorized to forward a copy of the Plan to the Ramsey County Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes, Section 469.175, subd. 2. Adopted: March 2&, 2000 ATTEST: Tts 5ecret PORT AUTHORITY OF THE CITY OF SAINT PAUL B Y �AJ. (:t,._ ��. � Its Chair 9iD9 Z ) 00-8!°4 EXHIBIT A RESOLUTION # The reasons and facts supporting the findings for the adoption of the Great Northern Business Center - Phase I T� Increment Financing District as zequired pursuant to Miunesota Statutes, Secrion 469.175, Subdivision 3 aze as follows: 1. Finding that the Dutrict is a"redevelopment district. " This Tax Increment District is a redevelopment district because parcels consisting of 7'� percent of the area of the district aze occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, aze structurally substandard to a degree requiring substantial renovation or clearance. 2. Finding that the proposed develapment, in the opinion of the Port Authoriry, would not reasona8ly be erpected 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 ta�c increment fcnancing would be less than the increase in the market value estimated to result from the proposed development afier subtracting the present value of the projected tax increments for the mcuimum dura[ion of the clistrict permitted by fhe 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 tas inerement financing. A comparative analysis of estimated market values both with and without establishment of the Great Northem Business Center - Phase I Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to assist with t� inczement were to occur in the Great Northem Business Center - Phase I site, the total increased mazket value would be up to $9,400,Q00. It is the Port Authority's finding that the increased mazket value of the site that could reasonably be expected to occur within 25 years without the use of taY inerement financing, and after subtraeting the present value of the projected taY increments for the cluration of the proposed district, would be less than that amount. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general azea of this Distriet. 3. Finding that the Great Northern Business Center - Phase I Tcu Incremenr Financing District conforms to the general plan for fhe development or redevelopmeni of the municipality as a whole. 9509 3 • . ,h c�o - d' 1'� The Great Northem Business Center - Phase T Tax Increment Financing Plan has been � reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the Ciry. 4. Finding that the establishment of ihe Great Northern Bzuiness Center - Phase I Tax Increment Financing Dissrict for will af�ord n:axirnum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the project by private enterprise. , 9509 4