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01-1250Council File # O \� �150 ��`��i�� A�cc��e.� IVoV . - a8'� 300� Resolution # Green Sheet # ! 13 /3 0 RESOLUTION CITY OF SAfNT PA,�L, MINNESOTA Presented By Referred To �� RESOLUTION NO. Committee: Date RESOLUTION APPROVING THE ESTABLISFIIvIENT OF THE FRANKLIN-EMERALD REDEVELOPMENT PROJECT AND THE EMERALD PARK TA.X INCREMENT FIIVANCING DISTRICT AND APPROVING A REDEVELOPMENT PLAN ANID TAX 1NCREMENT FINANCING PLAN THEREFOR 10 WHEREAS, the City Council of the City of Saint Paul (the "Council") has the statutory responsibility under 11 Minnesota Statutes, Section 469.028, to approve redevelopment plans and projects of the Housing and Redevelopment 12 Authority of the City of Saint Paul, Minnesota (the "IIRA"), after public hearing thereon; and 13 WHEREAS, Minnesota Statutes, Secrion 469.175 requires that before a county auditor may certify a tas 14 increment financing district created under Minnesota Statutes, Section 469.174 to 469.1791 (the °Taic Increment Act") 15 the governing body of the municipality must approve the tax increment financing plan after a public hearing thereon; 16 and 17 18 WHEREAS, the IIRA proposes to undertake the Franklin-Emerald Redevelopment Project (the "Project"), and has submitted to the Council a Redevelopment Plan therefor; and 14 WHEREAS, said Redevelopment Plan contains an identification of need and statement of objectives and 20 program of the HItA for carrying out of a redevelopment project, including property to be acquired, public 21 improvements to be provided, development and redevelopment to occur, and sources of revenue to pay redevelopment 22 casts of the Project; and 23 WHEREAS, the Saint Paul Planning Commission has reviewed the said Redevelopment Plan, and approved the 24 same as being in conformity with the Saint Paul Comprehensive Plan and the general plan for the development and 25 redevelopment of the City as a whole; and _ 26 WHEREAS, the HRA has asked the Council to approve the creation, within the Froject Area, of a Ta� 27 Increment Financing District as a redevelopment tax increment financing district under Minnesota Statutes, Section 28 469.174, Subdivision 10 (the "Tas Increment Financing DistricY'), and the adopfion of a Tas Increment Financing Plan 29 therefor, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.179 (the "Tax 30 Increment Act"); and 31 WHEREAS, the HRA has perfoxmed all actions required by law to be performed prior to the crearion of the Tax 1345698v1 32 Increment Financing District and adoption of the Tax Increment Plan therefor, including, but not limited to, ��"��`' � 33 notificarion of the Ramsey County Commissioner representing the area of the County in which the Tax Increment 34 Financing District is located, and delivering a copy of the Tax Increment Financing Plan to Ramsey County and 35 Independent School District Number 625, which have taxing jurisdicrion over the properry to be included in the Tax 36 Increment District; and 37 WHEREAS, on this date, the City Council conducted a public hearing on the Redevelopment Plan and Tas 38 Increment Financing Plan, after published norice thereof; and 39 WHEIZEAS, at said public hearing the City Council heazd tesrimony from all interested parties on the 40 Redevelopment Plan and Tax Increment Financing Plan; and 41 WI3EREAS, the City Council has considered the findings and determinarions of the Saint Paul Planning 42 Commission and the IIRA respecting the Project, Redevelopment Plan, TaY Increment Financing District and Tax 43 Increment Financing Plan, together with the documentarion submitted in support of the same and has taken into 44 account the inforxnation and laiowledge gained in hearings upon and during consideration of other matters relating to 45 the developments proposed for the Project. 46 Section 1. Approval of Redevelopment Plan. 47 1.01 It is hereby found and determined that the undertakings and site of the Project, as described in the 48 Redevelopment Plan constitutes a"redevelopment project" within the meaning of Minnesota Statutes, Section 49 469.002, Subdivision 14. It is hereby found and determined that the land in the Project Area would not be made 50 available for, nor would redevelopment be financially feasible without the public improvements and the financial 51 assistance proposed for the Project. It is hereby found and determined that the Redevelopment Plan will afford 52 maYimuxn opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment of such area 53 by private enterprise. It is hereby found and determined that the Redevelopment Plan conforms to the Saint Paul 54 Comprehensive Plan and the general plan for the development of the locality as a whole. 55 1.02 The Redevelopment Plan is hereby approved as in the public interest and as necessary in order to carry 56 out the development and redevelopment of the Project Area in accordance with the objectives and purposes in said 57 Redevelopment Plan provided thereby to eliminate the conditions identified in said Redevelopment Plan and 58 accomplish the provision of public improvements and private developments contemplated by said RedevelopmenY Plan 59 in the fiutherance of the general welfare of the citizens of Saint Paul. 60 Section 2. Findings for the Creation of the Emerald Park Tas Increment Financing District and Adoption of a 61 Tas Increment Financing Plan therefor. 62 2.01 The City Council hereby finds that the creation of the Emerald Park Tax Tncrement Financing District 63 and adoprion of the Tas Increment Plan therefor, are intended and, in the judgment of the City Council, its effect will 64 be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the redevelopment of blighted 65 structures and the consiruction of mixed income owner-occupied and rental housing, and will otherwise promote 66 certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan and Tax Increment 67 Financing Plan. 68 2.Q2 The City Council hereby finds that TaY Increment Financing District qualifies as a"redevelopment 69 district" within the meaning of the Tax Increment Act for the following reasons: 70 The Tax Increment Financing District is, pursuant to Minnesota Statutes, Section 469174, 71 Subdivision 10(a)(1), a"redevelopment districY' because it consists of a project or portions of a project 72 within which the following condifions, reasonably distributed throughout the Distdct, exist: (1) 73 pazcels consisting of at least 70% of the area of the District aze occupied by buildings, streets, utilities, 74 paved or gravel parldng lots, or other similar structures; and (2) more than 50% of the buildings 1345698v1 2 75 located within the Tax Increment Financing District are "shucturally substandazd" (within the 0 �'��O 76 meaning of Minnesota Statutes, Secfion 469.174, Subdivision 10(b)) to a degree requiring substanrial 77 renovation or clearance. 78 The District consists of 18 parcels, and parcels consisting of 100% of the azea in the Tax 79 Increment Financing District is occupied. There are 14 buildings in the Tax Increment District, of 80 which 12 (constituting 86%) aze shucturally substandard to a degree requiring renovation or clearance. 81 The buildings are structurally substandard because they contain defects in shuctural elements or a 82 combmation of deficiencies in essenrial uriliries and facilities, light and venrilarion, fire protection 83 including adequate egress, layout and condition of interior partirions, or similar factors, wtnch defects 84 or deficiencies are of sufficient total significance to justify substantial renovarion or cleazance, 85 specifically defects in structural elements. In addition, the costs of bringing the structurally 86 substandard buildings mto compliance with building codes applicable to new buildings would exceed 87 15% of the cost of constructing new structures of the same size and type on the sites. 88 The supporting facts for these determinarions aze on file with the staff of the Authority and include but aze not 89 limited to the report of SEH, Inc., dated November of 2001. 90 2.03 The City Council hereby makes the following additional findings: 91 (a) The City Council further finds that the proposed development, in the opinion of the City 92 Council, would not occur solely through private inveshnent within the reasonably foreseeable future and, 93 therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: 94 The property on which housing development will occur would not be developed in the 95 reasonably foreseeable future because it currently contains several blighted buildings that have 96 been underutilized for many years. The developer has represented that it could not proceed 97 with the development without tax increment assistance. 98 (b) The City Council further finds that the Tax Increment Financing Plan conforms to the general 99 plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: 100 The Tax Increment Financing Plan will generally compliment and serve to implement policies 101 adopted in the City's comprehensive plan. The housing development contemplated is in 102 accordance with the existing zoning for the property. 103 (c) The City Council further finds that the Tax Increment Financing Plan will afford maximum 104 opportunity consistent with the sound needs of the City as a whole for the development of the Taac Increment 105 Financing District by private enterprise. The specific basis for such fmding being: 106 The proposed development to occur within the Taac Increment Financing District is housing. 107 The development will increase the taxable market valua 'o of the City. The available 108 housing in the city will be expanded by approximately t ier occupied umts and 109 approximately 220 to 240 rental housing units with the complerion of the development 110 contemplated by the Tax Increment Financing Plan. � 55.00O.soe 111 (d) For purposes of compliance with Minnesota Statutes, Secrion 469.175, Subd' 'sion 3(2), the 112 City Council hereby fmds that the increased market value of the property to be developed w hin the Tax 113 Increment District that could reasonably be expected to occur without the use of tas incre nt financing is $0, 114 which is less than the market value estimated to result from the proposed development (i.e., aftex ll5 subtracting the present value of the projected tax increments for the maximum duration of the Tax Increment 116 Financing Dish (i.e., . In maldng these fmdings, the City Council has noted that the properLy 117 has not been redevelope for many years and would likely remain so if tax increment financing is not 1345698v1 3 �j 7/ bt• 1150 118 available. Thus, the use of tax increment financing will be a positive net gain to the City, the School Dishict, 119 and the County, and the taac increment assistance does not exceed the benefit which will be derived therefrom. 120 2.04 The provisions of this Section 2 aze hereby incorporated by reference into and made a part of the Tas 121 Increment Financing Plan. 122 Section 3. Creation of the Emerald Pazk Taac Increment Financing District and Approval of the Taac Increment 123 Fmancing Plan therefor. 124 3.01 The creation of the Emerald Pazk Ta�c Increment Financing Dishict and the Tas Increment Financing 125 Plan therefor aze hereby approved. 126 3.02 The staff of the IIRA and the FII2A's advisors and legal counsel are authorized and directed to proceed 127 with the implementation of the Tax Increment Financing District and the Tas Increment Financing Plan and for this 128 purpose to negotiate, draft, prepare and present to the Board of Commissioners of the HRA for its considerarion all 129 furthez plans, resolutions, documents and contracts necessary for this purpose. Requested by Department of: Planninq & Economic Hy: —�-1--�F Approved by Financia rv^ By: Form Approved by City� tt Adoption Certified by Council Secretary By: BY� Approved by Mayor: Date / Approved by By. � By: V / Mayor�� f Submission �iS Council �/ ' :' ' °y� " `� ( ��GI��L 1345698v1 Adopted by Council: Date �QQ` �/ DEPARTMENT/OFFICE/COUNCIL: DATE INI'17ATED GREEN SHEET No.: 113130 �iSO PED - West Team 11/08/Ol a I' CONTACT PERSON & PHONE: �ni"r�AI✓DATE lrvI"rIAL/DA7'E Donna Drmsunond (6-6556) � 2 DEPARTMENT DIR 6 CITY COUNCIL Diane Nordquist (6-6640) pSSIGN 3 CITY ATTORNEY _ CITY CLERK 4 FINANCIAL SERV DIR. FINANCIAL SERV/ACCTG MOST BE ON COUNCII, AGENDA BY (DATE) p�pg B � 5 MAYOR (OR ASST.) CIVIL SERVICE COMNIlSSION November 28, 2001 xoviuvc —�N �uGHTS Ds�r. i s� �tzstiaw :,� j ORDER TOTAL # OF SIGNAT[JRE PAGES _1_(CLIP ALL LOCATIONS FOR SIGNATURE) ncr[oN �QUESrEn: Conduct a CiTy Council public hearing on November 28, 2001, and approve a resolution regarding fhe establishment of the Franklin-Emerald Redevelopment Project and the Emeraid Park Taz Increment Financing District and approving a redevelopment plan and tax increment financing plan. RECOIvAgNDATIONS: Approve (A) or Reject (R) PERSONAL SERVICE CON1'RACTS MUST ANSWER 1'fIE FOLLOWING QUESTIONS: A PLANIVING COMIvIISSION l. Has this persoNSim ever worked under a contract for this department� CIB COMIvIITTEE Yes No CIVIL SERVICE COMMISSION 2. Has this person/firtn ever been a ciry employee? Yes No 3. Does this person/firm possess a skill not nolmally possessed by any cuaent city employee� Yes No Explain all yes answers on separate sheet and attach to green sheet INITIATiNG PROBLEM, ISSUE, OPPORTIIMTY (Who, What, When, Where, Why)� TI1C Clly C011riCll Wlll }l01(1 8 PUbI1C I1CeTtrig Ori November 28, 2001, and consider a resolution to establish the Franklin-Emerald Redevelopment Project and Emerald Pazk TIF district and plan. This will allow the redevelopment of two blocks bounded by Franklin Ave., Emerald St. (border with Minneapolis), Ellis Ave., and Curfew St. with up to 387 units of ownership and rental housing. The develapment will be seroed by underground parking, and 20% of the 237 rental uniYS will be affordable. The estimated market value of the proposed development is $78,000,000, and the present value of the projected t� increments for the maximum duration of TIF district is $8.5 million. ADVANTAGESIFAPPROVED: This project will help the City meet its housing development goals as identified in the Housing Plan chapter of the St. Paul Comprehensive Plan. Increasing housing density along University Ave., a transit corridor, is also consistent with the Land Use Plan chapter of the Comprehensive Plan. The project will result in the redevelopment of an underutilized; primarily industrial area that contains numerous blighted buildings. - ' � ,r �425 DISADVAN'PAGES IF APPROVED: �� None. �� Q nisnnvnivTncES � Nor arrxovEn: The proj ect will not move forwazd. ° TOTAL AMOiJN'i' OF TRANSACTION: $O COST/REVENIJE BUDGETED: FUNDING SOURCE: AC17V17'Y NUMBER: FINANCIAL IlYFORMATION: (EXPLAI� K\SAara]�PeA�DAlJMIJ�OND�FnnklinEmeraldPro�ect\GreensheetforRedevelopment&TffPlanwpd , 0�-1�° city of saint paul planning commission resolution file number O1-35 date May 11 zoo� RECO��NDING APPROVAL OF THE FItANI{LIN-EMERALD REDEVELOPMENT PLAN WHEREAS, the Redevelopment Plan for the Franklin-EmeraZd Redevelopment Project has been submitted to the Housing and Redevelopment Authority of the City of Saint Paul for its review; and WHEREAS, Minnesota Statutes Section 469.027 provides that the authotity shall transmit any such plans to the planning agency of the ciTy in which the area to be redeveloped is situated for � its study and a written opinion; and ._ �VHFREAS, the Saint_ Paul Planning Commission, on May 11, 2001, recommended adoption of an Area Plan Summary of the Franktin-Emerald Area Plan, which will be considered by the Saint Paul Ciry Council for adoption as an addendum to the Saint Paul Comprehensive Plan; and �VHEREAS,the Frarzklin-Emerald Area Plan calls for high qualiTy development that adds jobs, housing tuiits, or services for the community and takes advantage of its location along the University Ave. transit corridor; and WHEREAS, the redevelopment plan under consideration by the Housing and Redevelopment Authority provides for the development of the Franklin-Emerald area, which is bounded by University Avenue, Highway 280, Interstate 94, and Emerald Street, in a manner consistent with the policy directives of the Saint Paul Comprehensive Plan, and the goals, objectives and recommendations of the Franklin-Emerald Area Plan; NOW, THEREFORE, BE IT RESOLVED, that the Saint Paui Planning Commission finds the Redevelopment Plan for the Franklin-Emerald Redevelopment Project consistent with the Saint Paul Comprehensive Plan and recommends its adoption by the City Council and Housing and Redevelopment Authority. moved by Faricy seconded by in favor Unanimous �g�� p�_�aso REDEVELOPMENT PLAN FRANKLIN-EMERALD REDEVELOPMENT PROJECT SAINT PAUL, MINNESOTA Recommended by the Saint Paul Planning Commission May 11, 2001 HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA Ot -laso TABLE OF CONTENTS I. PURPOSE II. DESCRIPTION OF REDEVELOPNIENT PROJECT AREA III. BACKGROUND IV. DEVELOPNIENT OBJECTIVES V. i.IRBAN DESIGN GUIDELINES VI. REDEVELOPMENT TECHNIQUES TO ACHIEVE PLAN OBJECTIVES VII. OTHER NECESSARY PROVISIONS TO MEET STATE(LOCAL REQiJIREMENTS VIII. PROVISIONS FOR AMENDING PLAN 01-1�S I. PURPOSE The Housin� and Redevelopment Authority of the City of Saint Paul, Minnesota (H1ZA) proposes to estabiish the FRANKI,IN-EMERALD REDEVELOPMENT PROJECT AREA, as provided for in Mimiesota Statutes, Chapter 469.002, Subd. 14. This document represents the REDEVELOPMENT PLAN as provided for in Minnesota Statutes, Chapter 469.002, Subd. 16. The redevelopment project being undertaken pursuant to this Redevelopment Plan includes the work and undertakings set forth in Minnesota Statutes, Section 469.002, subdivision 14, includin� specifically the acquisition of bli�hted azeas and other real propem� for the purpose of removing preventing or reducing blight, blighting factors or causes of bli�ht. II. DESCffiPTTON OF REDEVELOPMENT PROJECT AREA The boundaries of the Franklin-Emerald Redevelopment Proj ect area as illustrated by E�ibit A attached aze described as follows: Beginning at a point where Emerald Street and University Avenue intersect, southeasterly along the northem right-of-way line of Uni�'ersity Ave. to Hi�hway 280, south'along the western right-of-way line of Highway 280 to Interstate 94, west along the northern right-of-way line of Interstate 94 to Emerald Street, and north along the east right-of-way line of Emerald Street to the point of beginning. IIL BACKGROUND The FRANKLIN-EMERALD REDEVELOPMENT PROJECT AREA is located on the western end of Saint Paul's University Ave. (Midway) Comdor, and serves as a gateway into St. Paul from Minneapolis. The project area includes a mix of uses, including major office buildings such as Court Intemational (400,000 sq. ft.) and the 2610 Office Building (»,000 sq, ft.); two large industrial buildings that are currently occupied by Case Equipment Corp. and Weyerhauser Lumber; a University of Minnesota building; a variety of smalier industrial buildings; and approximately 40 residences, primarily single-family. Despite the mix of uses, the entire area is zoned I-1 (ndustrial). While some of the buildings in the area are in good condition, others are deteriorated. Many of the commercial buildings are functionally obsolete and structurally substandard, and represent an underutilization of the properiy. The area can benefit from selective redevelopment that creates additional office space, newer light industrial buildings, and perhaps even housing units and neighborhood retail space, given the proximity of residential uses on the �vest side of Emerald St. in the Prospect Pazk neighborhood of Minneapolis. While the area has some assets, without positive intervention, the Fxanklin-Emerald area is unlikely to meet its full potential. Current pattems of land use are likely to continue because new development would likely be hampered by: fragmented properiy ownership; the presence of deteriorated, structurally substandard structures that must be removed for development to proceed; and a poor public perception of the azea. 01, ��so Both the St. Anthony Park Community Council and City of Saint Paul reco�nized the need to develop a plan to guide redevelopment in the Franlclin-Emerald azea. In June, 2000, the St. Anthony Pazk Community Council created the Franklin-Emerald Task Force to develop recommendations to guide potential future land use changes and redevelopment in the area. The fourteen member task force included representatives from azea businesses and residents, the St. Anthony Pazk Community Council, the Midway Chamber of Commerce, and the Prospect Park nei�hborhood in Minneapolis, and was assisted by staff from the Community Council and City of Saint Paul. The work of the task force resuited in the Franklin-Emerald Area Plan which was approved by the St. Anthony Park Community Council in February, 2001. The area plan and this redevelopment plan will be reviewed concurrently by the Planning Commission. This process will culminate in the City's adoption of both the azea plan as part of the City's Comprehensive Plan, and the Redevelopment Plan to guide the implementation activities of the City's Housing and Redevelopment Authority. Implementation of tYus redevelopment plan will be undertaken by providing for incentives and land use controls that encourage sound development that is consistent with the City of Saint Paul's Comprehensive Plan and is supported by types of market growth that can reasonably be expected in Saint Paul. IV. DEVELOPMENT OBJECTIVES The development objectives of the Franklin-Emerald Redevelopment Project Area are based on the policy directives of the Saint Paul Comprehensive Plan, including the Land Use Plan and Housing Plan chapters, and the recommendations of the Franklin-Emerald Area Plan. A. The Franklin-Emerald Redevelopment Proj ect Area is identified as part of the University Ave. Corridor in the recently adopted Land Use Plan. The plan encourages redevelopment along comdors that integrates business and industrial job creation with housing development and the improvement of existing neighborhoods. University Ave. is also a major transit route, having the highest bus ridership, along with I-94 routes, in the Twin Cities. The Land Use Plan encourages increasing the density of jobs and housing along major transit routes, stating, "New urban housing, offices, retail, and industrial development should all contribute through density and site design to the ridership base for public transporation on the University Avenue and I-94 bus [and potential LRT] routes." B. Both the Land Use Plan and Housing Plan support building new housing throughout the city, with a goal of 7,500 new units by 2020. Development of additional housing in the Franklin-Emerald redevelopment project area is encouraged if mazket conditions are supportive. Good housing design solutions that meet newer market needs and 2 0 \ ��'�so complement the existing neighborhood will be encouraged. Particular attention �vill be paid to assessing and meeting the needs of a growing number of older persons who are looking for alternative housin� in their o�vn neighborhoods. The Housin� Plan also requires that a certain pzoportion of new housin� units built be affordable to low and moderate income households, specifically, a minunum of 20 percent should be affordable to households with incomes below 50 percent of the re�ional median, with at least half of those to be affordable to households with incomes below 30 percent of the regional median. C. The Franklin-Emerald area currently contaans a mix of uses, includin� office, industrial, and residential uses. The vision of the Franklin-Emerald Area P1an is to continue the mixed use chazacter of Yhe area, but improve this �ateway into Saint Paul with high quality development that adds jobs, housing units, or services for the community and takes advantage of its location along the University Ave. transit comdor. Specific subarea recommendations include: 1. Area north of Franklin Ave. The plan encourages a continuation of the mixed use nature of this area. New office, residential, or light industrial development is appropriate. Any proposed development should be high quality with attractive building design, materials, and landscaping to create an improved gateway image into Saint Paul. New development should also be pedestrian-friendly, and attempt to create pedestrian pathways and connections throughout the area, including an improved pedestrian link to the Prospect Park neighborhood along Franklin Avenue. Along the University Ave. frontage, office uses, and supportive non- automobile-oriented retail uses, are most appropriate. Design of buildings along Emerald Street should be responsive to the scale and design features of the Prospect Park neighborhood. 2. Area south of Franklin Ave. The plan recommends maintaining the Curfew Street residential area. If redevelopment of the ll-acre Weyerhaeuser Lumber Co. property to the west of Curfew St. is proposed, consideration should be given to developing additional residential uses to link the Curfew St. neighborhood with the Prospect Park residential neighborhood in Minneapolis. Recreate the street grid in this area by developing new streets on the old Myrtle and Berry St. rights- of-way. Create alternate access points for tnzck traffic to eliminate trucks on Curfew and Emerald Streets. Redevelopment of the balance of the area with office or light industrial uses is encouraged. New development in this area should also incorporate high quality materials and design, and be pedestrian-friendly. IV. URBAN DESIGN GUIDELINES The following design guidelines should apply to any redevelopment project that is proposed for the area. O\-l�Se Create a sense of entry into St. Paul from the west on University Ave. and Franklin Ave. Design elements such as street trees, sidewalks, si�a�e, and different paving pattems can be used to create this sense of entry. These desi� elements should be inte�rated into the development of the area. 2. In general, new development should be desi�ned to create a gradual transition from the residential chazacter of Prospect Park to a more commercial and industrial chazacter movin� east to Highway 280. 3. The desib of new commercial buildings, especially along Franklin Ave. and Emerald St., should reflect the design elements of the Prospect Park neighborhood. Door and window opening sizes, trim, materials, and the height of street-front walls of new buildings can be designed to be more residential in character, to ease the transition between the more industrial St. Paul side and the residential Minneapolis side. Setbacks for new construction should be about 25 feet, similar to the setbacks of homes along Emerald St. 4. Street trees should be planted throughout the area, and sidewalks deceloped on all streets where they do not exisi now, especially along Franklin, Emerald, University, and any new streets that may be developed. 5. Parking lots should be placed to the side and rear of buildings, not in front. Parking lots should be screened from the street. Ramp or underground parking should be built when economically feasible to limit the amount of land devoted to surface parking. 6. New development should relate to the street and the rest of the community. Buildings should be oriented outwazd, rather than inward. New development should be environmentally sustainable, to include: - Zero-runoff or on-site storm water retention. Zero-runoff is difficult to achieve on urban sites, but storm water can be cleaned and detained on-site for a time before it enters the city storm sewer system. These ponds can be used as parks and open spaces in the development. - Native plantings. Using native plantings for landscaping can significantly reduce maintenance and installation costs. The use of native plants can eliminate the need for irrigation systems. Environmentally-sensitive design and conshuction of buildin�s. Whenever possible, incorporate the following concepts in any new development salvage recyclable materials during building demolition, design ener�y efficient buildings that exceed current code requirements, incorporate salvaged and recycled building materials in construction, and create healthy work and livin� spaces. � 01 _IaSo VI. REDEVELOPMENT TECHIVIQUES TO ACHIEVE PLAN OBJECTIVES This plan envisions the pernutted use of ali techniques or powers authorized through applicable statutes by the City, HRA, Port Authority or other public agencies as appropriate and necessary to carry out the implementation of the Plan. I3o provision of the Plan is to be taken to limit the full exercise of these powers. The followin� techniques aze cited as examples of ineans to achieve the objectives presented in Section N above. A. Support Private Initiatives. Private initiative and investment is the preferred means of achieving the obj ectives of this plan, and will be encouraged. The HRA or the City may enter into agreements with property owners or other persons in control of a project site which identify specific private responsibilities for the improvement of the site and will seek private guarantees to undertake redevelopment in accordance with this Plan. To induce such agreement, the HItA and the City will provide for, or cause to provide for, the following as is necessary and appropriate: 1. Administration of those public processes and requirements deemed necessary to support or allow developmenUredevelopment of properiy to occur in accordance with this Plan. If applicable and advisable, the HItA and the City ��ill provide assistance to developers to allow them to take responsibility for administrative activities. These include, but are not limited to: • Coordination of project activity, financing and review with human services agencies, citizen participation entities, and other state, regional and federal government agencies; • Initiation of vacations, rezonings, dedication of public rights-of-way, or other public actions as may become necessary to implement this Plan, in accordance with state, regional and federal govemment agencies; • Provision of standard municipal services to adequately insure public health, safety and welfare; • Enforcement of building codes, design controls, site covenants, provisions to insure compliance with state and local requirements relating to non- discrimination, income levels, environmental quality, faithful performance and any other public objectives relating to the purchase, development, improvement or use of the land; Pacilitation o£property exchanges. o�_ »s o 2. Public improvements that include, but aze not limited to, installation, construction or reconstruction of streets, parkways, pazkin� facilities, utilities, parks, walkways and trails, bridges and other public improvements or facilities as necessary or desirable to carry out the obj ectives of this Plan. Public unprovements will be undertaken in phases (of time and location) that coincide with and promote rational development patterns. Costs of such improvements may be assessed to the sites served by them. 3. Financing to provide affordable sources of financing to private companies involved in developin� components of this Plan. There are several financing mechanisms that can be used as appropriate to accomplish the objectives of this Plan. They include, but are not limited to: • Tax Increment Financing • Industrial Development Revenue Bond Loans (Taxable or Tax-exempt) • Other Revenue Bond Loans (Taxable or Taac-exempt) • Housing Revenue Bond Loans • Mortgage Subsidy Bonds • Acquisition/Lease/Sublease • Land Lease • Equity Participation • Development and Rental Assistance Payxnents • Interest Rate Reduction • Implementation of statutory authority for creation of proj ects and undertaking of activities where it is appropriate to use other financing methods In selecting methods of proj ect finance, the HRA and the City will take into account the forms of other assistance available and negotiate with individual developers so that a method can be chosen which provides sufficient incentive for the developer to create a quality product. B. Property Acquisition As an alternative and/or complementary redevelopment technique, the HRA or the City may choose to acquire certain property either through exercise of eminent domain according to the procedures established under Minnesota Statutes, Chapter 117 or through voluntary purchase. Acquisition of properiy will be considered when property is found to have any of the following characteristics: i. Blighted areas, buildings and other real property, where removing such can remove, prevent or reduce blight or the cause of blight; � 01 � ��SO 2. Open or undeveloped land blighted by virtue of conditions which have inhibited normal development by private enterprise; 3. Under used or inappropriately used property which may be converted to other uses recommended by this Plan; 4. Property necessary to complete parcels which would be suitable for development; 5. Property declazed to be unsafe or otherwise hazazdous to public health and safety; 6. Such other property as necessary to accomplish the obj ectives of this Plan. Specific properties to be acquired by the HRA of the City pursuant to the exercise of the power of eminent domain will be identified by resolution or by final order. Acquisition of property by the HRA or the City will be undertaken in accordance with state statutes goveming procedures for such activity, including the provision of relocation assistance, • services, payments and benefits in accordance with Minnesota Statutes Chapter 117. C. Site Preparation The HRA or the City will undertake or cause to undertake those actions deemed necessary to prepare acquired sites for redevelopment. These inchide, but are not limited to: 1. Demolition, removal or rehabilitation of buildings and improvements; 2. Activities to correct adverse chazacteristics of the land, soil or subsoil conditions, imusable subdivision or plat of lots, inadequate access or utility service, flood protection or other development-inhibiting conditaons; 3. Activities deemed necessary or desirable to remove, reduce or prevent other blighting factors and cause of blight; 4. Other activities deemed necessary or desirable to improve and prepare sites for development, rehabilitation or redevelopment for uses in accordance with this Plan; 5. Installation, construction or reconstruction of streets, pazkways, utilities, pazks, walkways and trails, and other public improvement or facilities as necessary or desirable for carrying out the objectives of this Plan; D. Land Disposition and Improvement Agreements The I�RA and the City will sell, lease or otherwise dispose of acquired property in o��as� accordance with the requirements of applicable laws and plans, and subject to such terms and conditions as the HRA of the City deem appropriate to carry out the implementation of the Plan. VII. OTHER NECESSARY PROVISIONS TO MEET STATE/LOCAL REQUIREMENTS A. Non-Discriminarion. Every contract for sale, lease or redevelopment of property within the Redevelopment Project will require compliance with all state and local laws in effect from time to time, prohibit discrimination or segregation by reasons of race, religion, color, sex, or national origin in the sale, lease or occupancy of the property, and require that this latter provision be made a covenant running with the land and be binding upon the redeveloper and every successor in interest to the property. B. Vacations, RBzonings, Dedications and Covenants. Vacations, rezonings, and dedications of public rights-of-way as may become necessary shall be accomplished by separate actions in accordance with state law and local ordinances. VIII. PROVISIONS FOR AMENDING PLAN The Redevelopment Plan may be modified at any time in the manner provided by law. 0 o�-laso TAX INCREMENT FINANCING PLAN for the establishment of EMERALD PARK TAX INCREMENT FINANCING DISTRICT (a redevelopment district) HOUSING AND REDEVELOPMENT AUTHORITY OF THE CTTY OF SAINT PAUL R.AMSEY COUNTY STATE OF MINNESOTA Adopted: , 2001 This document was drafted by: BRIGGS AND MORGAN (MNID) Professional Association 2200 First National Bank Bldg. St Paul, MN 55101 (651)223-6625 1332442v2 O1-l�so TABLE OF CONTENTS (for reference purposes oniy) TAX INCREMENT FINANCING PLAN FOR Tf� EMERALD PARK TAX INCREMENT FINANCING DISTRICT , P� Section Forward .................................................................................................................. l Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Statutory Authority .................................................... 1 Statement of Objectives .........................................................................................1 Redevelopment Plan Overview .............................................................................. 2 Parcels to be Included in Tas Increment Financing District .................................. 2 Parcels be Acquired ............................................................................................2 Development Activity in Tax Increment Financing District for which Contracts have been Signed .......................................:............................. Other Specific Development Expected to Occur within Redevelopment 2 Project ........................................................................................................... 3 Section 9. Estimated Cost of Project; Tax Increment Financing Plan Budget ....................... 3 Section 10. Estimated Amount of Bonded Indebtedness .......................................................... 3 Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. Section 19. Section 20. Section 21. Section 22. Section 23. Section 24. Sources Revenue ................................................................................................ 3 Estimated Captured Tax Capacity and Estimate of Taac Increment ....................... 3 Type of Tas Increment Financing District ............................................................. 4 Duration of Tax Increment Financing District ....................................................... 4 Estimated Impact on Other Taxing Jurisdictions ................................................... 4 Modification of Tax Increment Financing District and/or Tax Increment Financing ....................................................................................................... 4 Modifications to Tax Increment Financing District ............................................... 5 Administrative Expenses ............................................ Limitation of Increment ........................ Use of Tas Increment .................................................. Notification of Prior Planned Improvements .............. Excess TaY Increments ......................................................... Requirements for Agreements with the Developer ............... Other Limitations on the Use of Tax Increment ................... ........................... 5 ........................... 6 ........................... 7 ........................... 8 ........................... 8 ........................... 8 ........................... 9 1332442v2 ai-�ZSo Secrion 25. County Road Costs ....... io Section 26. Assessment Agreements ............................................................................•••.......10 Section 27. Administration of the Tax Increment Financing District ..................................... l l Section 28. Financial Reporting Requirements ......................................................................11 EXHIBTT A— Parcel Identification Numbers EXHIBIT B— Tax Increment Pinancing Plan Budget EXHIBIT C- Projected Tax Tncrements EXHIBTT D- Estimated Impact on Other Taxing Jurisdictions 1332442v2 o�_�aso TAX INCREMENT FINANCING PLAN FOR THE EMERALD PARK TAX INCREMENT FINANCING DISTRICT Section 1. Forwazd. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), and its staff and consultants have prepared the following information for the establishment of a redevelopment tax increment financing district (the "Tas Increment Financing District"). The Ta�c Increment Financing District is located within the Franklin-Emerald Redevelopment Project established by the HRA (the "Redevelopment Project Area") pursuant to a redevelopment plan (the "Redevelopment Plan") adopted by the HRA on November 28, 2001. Section 2. Statutorv Authoritv. There exist areas within the City of Saint Paul (the "City") where public involvement is necessary to cause development to occur. To this end, the HRA has certain statutory powers pursuant to Minnesota Statutes, Section 469.001 to 469.047 (the "HRA Law") and Minnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Financing Act" or "TIF Act"), to assist in fmancin� public costs related to a redevelopment project. Section 3. Statement of Objectives. The Tax Increment Financing District consists of the parcels of land identified in Exhibit A and adjacent and internal rights-of-way. The Tax Increment Financing District is being created to facilitate the development and redevelopment of housing facilities. The tax increment financing plan is expected to achieve the objectives outlined in the Redevelopment Plan for the Redevelopment Project Area. The following are some of the objectives being facilitated by the Tax Increment Financing Plan. A. Provide Affordable Housing for Saint Paul Residents. The available housing for residents in the City will be expanded when the housing facilities which are anticipated to be constructed in the area aze built. B. To Redevelop Underused Propertv. The Tax Increment Financing District currentiy contains several commercial buildings that aze blighted or have been underutilized for many yeazs. In order to protect existing investment and encourage new development in the area, substandard buildings need to be demolished and new facilities need to be conshucted. C. Exnand the Tax Base of the Citv of Saint Paul. It is expected that the taxable mazket value of pucels in the Tax Increment Financing District will increase by approximately $78,000,000 as a result of the new development. The activities contemplated in the Redevelopment Plan and this Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. O\ - �� These activities aze anticipated to occur over the life of the Tax Increment Financing District and the Redevelopment Pro,}ect. Secrion 4. Redevelopment Plan Overview. Property to be Acquired - Any of or all of the property located within Tax Increment Financing District or Redevelopment Project Area may be acquired by the HRA. 2. Relocation - if necessazy, complete relocation services aze available pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to a development and completion of the necessary legal requirements, the HRA may sell or assist a developer with the cost of selected properties within Tax Increment Financing District or Redevelopment Project Area, or may lease land or facilities to a developer. . Section 5. Parcels to be Included in Tax Increment Financine District . The parcels located in the City of Saint Paul, Ramsey County, Minnesota identified on Exhibit A are to be included in the Tax Increment Financing District. FURTHER INFORMATION REGARDING THE IDENTiFICATION OF THE PARCELS TO BE INCLUDED IN THE TAX IIVCREMENT FINANCING DISTRICT CAN BE OBTAINED FROM THE EXECUTIVE DIlZECTOR OF THE HRA. Section 6. Parcels to be Acquired. The HRA may finance all or a part of the costs of acquisition of the pazcels identified in Section 5 of this Taac Increment Financing Plan. The following aze conditions under which properties not designated to be acquired may be acquired at a future date: (1) The HI2A may acquire property by gift, dedication, condemnation or direct purchase from willing seliers in order to achieve the objectives of the talc increment financing plan; and (2) Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Section 7. Development Activitv in Tax Increment Financing District for which Contracts have been Si�ned. The following contracts have been or will be entered into by the HI2A and the persons named below: The F3F2A anticipates entering into a development agreement with Emerald Street LLC, a Minnesota limited liability company with respect to the construction of up to 150 owner occupied housing units and a development agreement with 1332442v2 01-1?Sfl Dominium Properties, with respect to ffie construction of approximately 220 to 240 rental housing units. The owner occupied housing development is expected to have total development costs of approximately $34,200,000 and to be completed by December 31, 2005, and the rental housing development is expected to have total development costs of approximately $36,000,000 and to be completed by December 31, 2003. Section 8. Other Suecific DeveloQment Exroected to Occur within Redevelopment Proiect Area. The HRA anticipates that future development in tfie TaY Increment Financing District will include the renovation by Emerald Street, LLC or an affiliate thereof, of an existing commercial building. Section 9. Estimated Cost of Proj ect; Tax Increment Financing Plan Budeet. The HRA has determined that it will be necessary to provide assistance for certain public costs of the Development. To facilitate the Development within the Tax Increment Financing District, this • Tax Increment Finazicing Plan authorizes the use of tax increment financing to pay for a portion of the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Tax Increment Financing District is outlined on Exhibit B. Estimated costs associated with Tax Increment Financing District are subject to change and may be reallocated between line items by a resolution of the HRA. The cost of all activities to be financed by the tax increment will not exceed, without formal modification, the budget for the tax increments set forth on Exhibit B. Section 10. Estimated Amount of Bonded 7ndebtedness. The expenditures authorized by this Tax Increment Financing Plan may be paid for on a pay-as-you-go basis. If bonded indebtedness is issued by the HRA or the City, the principai amount is estimated not to exceed $10,000,000. Section 11. Sources of Revenue The costs outlined in Section 9 above will be financed from bond proceeds or through the annual collection of tax increments, the loans or grants made by other public agencies for the development, and private financing obtained by the Developer. Potential public sources of revenue to pay the costs of development in the Tax Increment Financing District are the Metropolitan Council, City of Saint Paul STAR program, Minnesota Housing Finance Agency, FannieMae, CDBG, DTED redevelopment funds, federal HOME and Economic Development Initiative funds, proceeds of housing revenue bonds, tax credits and any other available federal, state or local grant or loan proceeds. Section 12. Estimated Ca�tured Tax Capacitv and Estimate of Tax Increment. The most recent tax capacity of Tax Increment Financing District is estimated to be $48,267 as of January 2, 2001. The estimated captured tax capacity of Tax Increment Financing District at completion is estimated to be $808,962. 1332442v2 3 Oi-1�'S The HRA elects to retain all of the captured tax capacity to finance the costs of Tax Increment Financing District. The HRA elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, subd. 3(a). Section 13. Type of Tas Increment Financins District. Tax Increment Financing District is a redevelopment district established, pursuant to Minnesota Statutes, Section 469.174, Subd. 10. Pa:cels consisting of 70 percent of the area of the Tax Increment Financing District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not includin� outbuildings, are structurally substandard to a de�ree requiring substantial renovation or clearance. The costs of brin�ing the substandard buildin�s into compliance with the buildin� code applicable to new buildings is 15 percent or more of the cost of constructin� a new structure of the same square footage and type on the site. The reasons and supportin� facts for these determinations are set forth in a report prepared by Short, Elliot, Henrickson, dated , a copy of which is on file with the Executive Director of the HRA. ' The HRA and the City have determined that the proposed development of the Tax Increment Financin� District would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fiiture 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 vahte of the projected tax increments for the maximum duration of the district permitted by the plan. Section 14. Duration of Tax Increment Financin� District. The duration of Tax Increment Financing District will be 25 years from the receipt of the first tax increment. The date of receipt of the first tax increment is expected to be July of 2003. Attached as Exhibit C is the projected receipt of tax increments from the Tax Increment Financing District. Section 15. Estimated Impact on Other Taxine Jurisdictions. If the constniction within the Tax Increment Financin� District would not have occuned without tax increment financin�, the impact is �0 to the other taxing jurisdictions. Norivithstandin� the fact that the construction would not have occurred without tax increment assistance, the estimated impact of Tax Increment Financing District if the "but for" test was not met is set forth on Exhibit D. Section 16. Modification of Tax Increment Financins District and/or Tax Increment Financine Plan. No modifications to Tax Increment Financing District or the Tax Increment Financing Plan have been made as of the date hereof. Section 17. Modifications to Tax Increment Financina District. In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any: 1. reduction or enlar�ement of the geographic area of the Tax Increment Financin� District; I332332v2 4 o �.��s� 2. increase in amount of bonded indebtedness to be incurred, including a detemrination to capitalize interest on debt if that detemunation was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; increase in the portion of the captured net tax capacity to be retained by the HRA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the HRA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geograghic azea of District may be reduced, but shall not be eniazged after five yeazs 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 Tas Increment Financing District equals or exceeds the net tax capacity of those pazcel(s) in the Tax Increment Financing DishicYs 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 cunent net tax capacity of the parcel(s) eliminated from the Tax Tncrement Financing District. The HRA must notify the County Auditor of any modification that reduces or enlazges the geographic azea of the Tax Increment Financing District or the Redevelopment Project Area. Modifications to Tax Increment Financing D'astrict in the form of a budget modification or an expansion of the boundaries will be recorded in the Tax Increment Financing Plan. Section 18. 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 HRt1, other than: amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district; 2. relocation benefits paid to or services provided for persons residing or businesses located in the district; or 3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Minnesota Statutes, Section 469.178. 1332442v2 5 p � _ \7 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 Taac Increment Financing District up to but not to exceed 10 percent of the total ta�c increment expenditures authorized by the taac increment financing plan or the total tax increment expenditures, whichever is less. Pursuant to Miimesota Statutes, Section 469.176, Subd. 4h, ta�c increments may be used to pay for the county's actual administrative expenses incurred in connection with the Tax Increment Financing District. The county may require payment of those expenses by February 15 of the year following the yeaz the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the HRA and the county treasurer shali 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 tas increment financing. Section 19. Limitation of Increment Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no tas increment shall be paid to the HRA for 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 Taac Increment Financing District by the County Auditor unless within the three (3) yeaz period: (1) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in aid of a proj ect pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 to 469.165, or (2} the HIZA has acquired property within the Tax Increment Financing District, or (3) 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 terminated 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 Ivlinnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site tssiaaz�z 6 bt-1tis' preparation, including qualified improvement of a street adjacent to a pazcel but not installation of urility service including sewer or water systems, has been commenced on a pazcel located within a taac increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that pazcel and the origina} net tax capacity of that pazcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that pazcel 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 acrivity 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 ta�c 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) relocarion of a street, and (3) substantial reconstruction or rebuilding of an existing street. Section 20. Use of Ta�c Tncrement. The HRA hereby determines that it will use 100 percent of the captured net tas capacity of taxable property located in the Tax Increment Financing District for the following purposes: to pay the principal of and interest on bonds used to finance a project; 2. to fmance, or otherwise pay the capital and administration costs of the 12edevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 469.134; 3. to pay for proj ect costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in Minnesota Statutes, Section 469.1 76, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to the FII2A or for the benefit of Redevelopment Proj ect Area by the developer; 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and interest on tax increment bonds or bonds issued pursuant to the Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both; and 7. Yo accumulate or maintain a reserve securing the payment when due of the principal and interest on the t� increment bonds or bonds issued pursuant to 1332442v2 b�-1>S' Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both. These revenues shall not he used to circumvent any levy limitations applicable to the HRA nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4. Section 21. Notification of Prior Pianned ImDrovements. The HI2A shail, after due and diligent search, accompany its request for certification to the County Auditor or its notice of the Tax Increment Financing District enlazgement with a listing of all properties within the Tax Increment Financing Distsict or azea of eniargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Plan by the municipality pursuant to Minnesota Statutes, Section 469.175, Subd. 3. The County Auditor shall increase the original value of the Tax Increment Financing District by the value of nnprovements for which a building permit was issued. Section 22. Excess Tax Increments Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in which the ta�c increment exceeds the amount necessary to pay the costs authorized by the Plan, inciuding the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess amount to do any of the foliowing: prepay any outstanding bonds; 2. dischazge the pledge of tas increment therefor; 3. pay into an escrow account dedicated to the payment of such bond; or 4, retum the excess to the County Auditor for redistribution to the respective ta�cing jurisdictions in proportion to their local tax rates. In addition, the HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Tax Increment Financing District or Redevelopment Project Area. Section 23. Requirements for Agreements with the Develooer. The HRA will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping pian, grading and storm drainage plan, signage system plan, and any other drawings or nanative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. The I-IRA may also use the Agreements to address other issues related to the development. 1332442v2 01 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 Tncrement 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. Section 24. Other Limitations on the Use of Tax Increment. 1. Generai Limitations Ail revenue derived from tax increment shali be used in accordance with the Plan. The revenues shall be used to finance, or othenvise 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 • zevenues 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 govemment or the state or federal government, or for a commons azea used as a public pazk, or a facility used for sociai, 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 structwe. 2. Pooline Limitations. At least 75 percent of tas increments from the Tax Increment Financing Dish must be expended on activities in the Tax Increment Financing District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said dishict or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the Tax Tncrement 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 Lncrement Financing District. Five Yeaz Limitation on Commitment of TaY Increments. Tax increments derived from the Tax Increment Financing District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five yeaz rule set forth in Minnesota Statutes, Section 469. 1763, Subd. 3, has been satisfied; and be� nning with the sixth year following certification of the Tas Increment Financing District 75 percent of said taac increments that remain after expenditures permitted under said five yeaz rule must be used only to pay previously commitment expenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section 469.1763, Subd. 5. 1332442v2 9 O) �, 4. �enditures Outside District. The Authority hereby elects to spend an additional ten percent of the tax increments on activities located outside the Taat Increment District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d) provided that the expenditures meet the following requirements: (1) they aze used exclusively to assist housing that meets the requirements for a qualified low-income building as defined in Section 42 of the Intemal Revenue Code of 1986, as amended (the "Code"); (2) they do not exceed the qualified basis of housing as defined under Section 42(c) of the Code less the amount of any credit allowed under Section 42 of the Code, and (3) They aze used to (i) acquire and prepaze the site for housing, (ii) acquire, construct or rehabilitate the housing or (iii) make public improvements directly related to the housing. Section 25. Countv Road Costs. Pursuant to Minnesota Statutes, Section 469. 175, Subd. la, the county board may require the HItA to pay for all or part of the cost of county road improvements if, the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements aze not scheduled within the next five yeazs under a capital unprovement plan or other county plan. In the opinion of the HRA and consultants, the progosed 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. Section 26. Assessment Aereements. Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the FIltA may enter into an agreement in recordable form with the developer of property within the Tax Increment Financing District which estabiishes 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 mazket value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estunate, the assessor may certify the minimum market value agreement. Section 27. Administration of the Tax Increment FinancinQ District. Administration of the Tax Increment Financing District will be handled by the Executive Director of the HItA. 1332442v2 1 � b �.qs ° Section 28. Financial ReportinQ Requirements. The HRA wiil comply with all reporting requirements of Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a. issza�z�z 11 Q �_ ps '° Name of District: Type of District: Duration of District: EXHIBIT B TAX INCREMENT FINANCING PLAN BUDGET Franklin/Emerald Redevelo�ment 25 vears Projected Sources of Funds Amount Projected Uses of Funds Amount o � - �os° EXI�IBIT A Parcel Idenrification Numbers of Parcels included in Tax Increment Financing District: 29-29-23-33-0001 29-29-23-33-0002 29-29-23-33-0003 29-29-23-33-0004 � 29-29-23-33-0006 29-29-23-33-0007 29-29-2333-0008 29-29-23-33-0009 29-29-23-33-0010 29-29-23-33-0011 29-29-23-33-0012 29-29-23-33-0013 29-29-23-33-0014 29-29-23-33-0015 29-29-23-33-0017 29-29-23-33-0059 29-29-23-33-0060 29-29-23-32-0034 1332442v2 L�-1 o�-1�s s a � G Q � 4 ' O e � �a E ¢o r na z0 � q 6Q 0 00 rLL z3r� i m � � � A N — C � 2 O � 'y � � � t > W o� O q � O � C � — N � O A d a C r � a �> 3„ - zc' >> c i o �° a _- �¢ u` U'� a ; � u v � � . � . - -` v m a, _v w _v � � v � o�_ L o= a¢¢ a i - m C� U"� � u c � � � �' x '-� m _ _ n c x C o n LL a r j u ° o 0 �?¢� t� N w� v v a_�i _. y = s.WWW � _ EXHIBIT C FU F m L FF d � `ma F k o 0 a N 6 ) - !�S' a` W a, m � 6 N a` �' T c2 N a �c6 9 Q d � ya ¢' Q O �� N <�n�nmm•n c�c+oo��Nrvrinee nmmrrmmmmoo«rvrvr�v+voinv��oani.mmmm ��t�`It�Vt�VNNNN�tV�ry�va�VNN(�VNNNNNNNNNt�Vt�VC�1l�VNC�IC�iNt�VNNNNt�V P L P � CaD O d O�➢ O�tl O�➢ � D O�L O�a N 9 Uio C�� P� alta P➢ d1a O�y C�p O � Cr '> N L G� � O� � �a�A�Q�6�Q fQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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W w w � _ m a �> �� z W n OFU � % t O LL W q v O J � F > � U W � K y .. � d F d LL h d: N � � LL � sh� E � y � yF O O EXHIBIT D Estimated Impact on Other Taxina Jurisdictions ID'IPACT O\ TA� BASE 2000/2001 Estimated Captured Total Net Tax Capacity (CTC) Tas Caoacitv Unan Comnletion 6 �'�� Percent of CTC to Entitv Total Ramsey County 419,554,880 808,962 0.1928% City of St. Paul 181,113,311 808,962 0.4467% ISD No. 62� 181,113,931 805,962 0.4467%' ID'IPACT O\ TAX RATES 2000/2001 Percent Potential Extension Rates of Total CTC Tares Ramsey County 0.384600 27.9�% 803,962 311,127 City of St. Paul ISD No.G25 0329230 0.575280 23.92% 41.80% 80S,962 808,962 2GG,335 465,380 Other: 0.087240 634% SOS,962 70.574 Total 1376350 100.00% 1,113,415 The estimates listed above display the captured tax capacity when all construction is complered. The tas rate used for calculations is the 2000/Pay 2001 rate. The total net capacity for thz entities listed above are based on Pay 2001figures. The District will be certified under the actua12001/Pay 2002 rates, which �vere unavailable at the time this Plan was prepared. ;rald Redevelopment 100 0 100 200 300 400 500 Feet 12 i� �--- -, TIF District S� b�' � f � � C] Parcels [� Buildings - _194-....._... 2�� o�-�a �� 75 located within the Tax Increment Financing District are "shucturally substandard" (within the 76 meaning of Minnesota Statutes, Secrion 469.174, Subdivision 10(b)) to a degree requiring substanrial 77 renovarion or cleazance. 78 The Dishict consists of 18 parcels, and parcels consisting of 100% of the area m the Tax 79 Increment Financing Dish is occupied. There are 14 buildings in the Tax Increment Dish of 80 which 12 (constituting 86%) are stnxcturally substandard to a degree requiring renovarion or cleazance. 81 The buildings aze structurally substandard because they contain defects in structural elements or a 82 combination of deficiencies in essenrial utiliries and faciliries, light and venrilarion, fire protection 83 including adequate egress, layout and condirion of interior partirions, or similar factors, which defects 84 or deficiencies aze of sufficient total significance to justify substantial renovarion or clearance, 85 specifically defects in structural elements. In addirion, the costs of bringing the structurally 86 substandard buildings into compliance with building codes applicable to new buildings would exceed 87 15% of the cost of constructing new structures of the same size and type on the sites. 88 The supporting facts for these determinations are on file with the staff of the Authority and include but aze not 89 limited to the report of SEH, Inc., dated November of 2001. 90 2.03 The City Council hereby makes the following addirional findings: 91 (a) The City Council fiu finds that the proposed development, in the opinion of the City 92 Council, would not occur solely through private inveshnent within the reasonably foreseeable future and, 93 therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: 94 The property on which housing development will occur would not be developed in the 95 reasonably foreseeable future because it currently contains several blighted buildings that have 96 been underutilized for many years. The developer has represented that it could not proceed 97 with the development without tax increment assistance. 98 (b) The City Council further finds that the Tas Increment Financing Plan conforms to the general 99 plan for the development or redevelopment of the City as a whole. The specific basis far such finding being: 100 The Ta�c Increment Financing Plan will generally compliment and sezve to implement policies 101 adopted in the City's comprehensive plan. The housing development contemplated is in 102 accordance with the existing zoning for the property. 103 (c) The City Council further finds that the Tax Increment Financing Plan will afford maximum 104 opportunity consistent with the sound needs of the City as a whole for the development of the Ta�c Increment 105 Financing District by private enterprise. The specific basis for such finding being: 106 The proposed development to occur within the Tax Increment Financing District is housing. 107 The development will increase the taxable market valuarion of the City. The available 108 housing in the city will be expanded by approximately owner occupied units and 109 approximately 220 to 240 rental housing units �vith the co plerion of the development - ll0 contemplated by the Tax Increment Financing Plan. �� r �'�� Q � 111 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivi on 3(2), the 112 City Council hereby finds that the increased market value of the property to be developed wit n the Tax ll3 Increment District that could reasonably be expected to occur without the use of tas increme t financing is $0, 114 which is less than the mazket value estimated to result from the proposed development (i.e., ) after 115 subhacting the present value of the projected talc increments for the maximum duration of the Tas Increment 116 Financing District (i.e., �"o�,^� In maldng these findings, the City Council has noted that the properry 117 has not been redevelop�e�for many years and would likely remain so if talc increment financing is not 1345698v1 3 '],15�D� oo� � 6 b �� 1a'S t"IODdNN0N1� 00C�0�00� t7l")PVNNt0�01�1�m00�0�00��[VNf1C1 �mm4lal NNNN(V(VNC�iNNNNNNNN[VtVtVNNNNNNNNC�i(�VN(�`�NC�iNNf�VN(�V(�VC�INNt�V(VNNNNtV p� ca ca ma wa c+a rn a on rno c ILQY.QILQILQiLLQ1LGL61LQ1LQY.QIIQLLQLLQIQLLQLLQLLQLLQ^Q`Q fQLLQLQI�Q^Q'G!Q . • • • • • • • • • . • . • r • � . � • • • • . • . • • • . � . . . . . • O� N� a- c E W 6 000000000000 0000000000000000000000000000 000000000cd000000ddoocdoc000000000cdoocc000cddd000codo Q d Ea` h 6� �Z N a � Ea °¢ 00 Ob1�b0N0 NO �pNON NYIN000��C700� �O� ONOI�rymV10P 0m04 mN NOO ^ �� n hl7tOr�mO�OVmPN�NnO�TN C PN � N00003+ �� mtt � mONPVr � NOnvOtO �ry�Nip�paO�N�Pb�OnmNNO^NNC�1 � m�Nm�tHry��v ra�l'�Y�000�� IVN Ct1'�C1CIV<vP �NVINNNN(G�Gb�O�DNtO1�nA1�Fl�l�Fnnl�m " ' " " " " " ' �� b m P N N N N N N(�V(�V lV N N t�V N N N N N N N N N N N N N N N N N o �O �O b �O � � � � � � � � � � tG � Oi Oi th 17 YI N N t7 n f'1 fi l7 Ci CI t'1 Cf Ci fl ��nei ecveavaevvvvvevveav<ecveve<oo<ee<veaveee<vvvvee � n�m m� mv�n�nv�nv�v�uinv�vin�nnv� �nv�n�nnnu�v��nm�nnm�nm�n�n O O O A m m 0 0 p 0 0 0 V 0 0 0 0 0 OO�tyiC�lt��l�?�t��lt ma y c '° a N 6 Q O �� N 000 ;�,�< �Rm -ss ssssssssssosassssea m m O O t N N N N N N N N N N N N N N V N N N� N N Y�1 � N N N N N N N N N N N N Y N �NNNNN��N��N��N��N��ryNnIIV�N�fVNNN(VN NNN � OOOm NNVfHNNNNNNNNNNNNNUINNVINNNNhYfY�NNNNNNNNYfYfv(INNNNNN 0 O O O O� O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O� O� ��vvNNNNNNY1� N = U U � F O O o O o m m O�i O�i T m� � O�i m� m� O�i m m m m m m 4 � O�+ m m m m O�i N m O�i O�i m m m m� N m O O 0 0 0 m O O m O O 0�� 0� � m m m 0�� m�� m m m 0 9 0 0 0 0 0 0 0 m 0 0 0 0 0 n'�oio ° mmm mmm mm mmmmm mm mm ° m ° m ° mm ° m ° m ° m ° m ° m ° m ° m ° mm °O °° m O� $ M1�it�v �O (�p n n t7 v v v v v v�� v v v v v v� v� v v v v� e e v v v v m m e v v v v i n n e n P � 17f�1� n 0 0 0 0 m 0 0 0 0 0 0 0 0 0 0 0 0 m m m 0 0 m 0 m 0 0 0 m m m 0 m 0 0 0 0 m 0 0 0 0 0 0 0 m m � �N�NNNNNNI�VN� jF Pm J � N nIY v p a o v v p p T C 4 C P P v v C v P v Y v v v v v v P v v v c P P< P P C v P v P O P v P C P P 4 4 C P P O N �OU� � r la` I o nm�o��mommoo rvMe�von�nm�ornmomaoo� nnn v,m�o� mmm ��rvci cl°v rnL c�a c�LL rnn rn° �° cn o�a rn� mn o�a rnn wa o�a m o� ao rnn rnLL rn wa we c+ rn v w c� v�LL �i.:¢ ��.-� GIiQ �¢.-¢�� 61iQILLQ ^ 6 ' 6 `f u � a. 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