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01-404Council File # O 1��d y Green Sheet # V 013 38' RESOLUTION OF SAINT PAUL, MINNESOTA �� Presented by Refened To Committee Date R&SOLIITION ADOPTING THE MODIFICATION5 TO THS IINIVSRSITY AVSNIIS / T.H. 280 TAX INCREMSNT FINANCING PLAN TO CRSATS A HAZARDOIIS SIIBSTANCS SIIBDISTRICT IN THE IINIV8RSITY AV8ND8 / T.H. 280 TAX INCRBtdBNT FINANCING DISTRIC'I` BE IT RESOLVED by the City Council (the "Council") of the City of Saint Paul, Minnesota (the "City"), as follows: WHEREAS, On September 22, 1987, the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 2858, creating the University Avenue / T.H. 280 Tax Increment Financing District (the "District"), and, in connection with the creation of the District, the Port Authority Board approved the tax increment financing plan relating thereCO, all pursuant to and in accordance with Minnesota Statutes, Sections 469.048 through 460.068, inclusive; and Minnesota Statues, Sections 469.174 through 469.179, inclusive; and WHEREAS, the Port Authority has been advised that certain parcels within the District require environmental remediation before such parcels can be developed, and, in an effort to further develop the District, the Port Authority has proposed the establishment o£ a I3azardous Substance Subdistrict within the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; and WHEREAS, Port Authority management has previously prepared and submitted a Response Action Plan ("RAP") to the Minnesota Pollution Control Agency (the "MPCA"), as required by Minnesota Statutes, Section 469.174, Subdivision 17, and received the necessary approvals from the MPCA for the RAP in September, 2000; and WHEREAS, on February 27, 2001, the Board of Commissioners of the Port Authority of the City of Saint Pau1 adopted its Resolution No. 3873 requesting that Port Authority management call for a public hearing to consider the modification of the University Avenue / T.Ei. 280 Tax Increment Financing District (the "District") to create a Hazardous Substance Subdistrict (tlie "Subdistrict"), authorizing Port Authori[.y management to finalize the tax increment financing plan related thereto (the "Modified Plan"), and directing Port Authority management Co submit the necessary notifications to the Ramsey County Auditor and the Clerk of the Saint Paul School Board; and WI3EREAS, Port AuthoriCy management has transmitted the necessary notices and, following a public hearing on the Modified Plan held on April 24, 2001, adopted its Resolution No. __ approving the Modified Plan; and WHEREAS, Port Authority management has prepared a budget for the cost o'f removal and remediation action specified in Che RAP, and the sources of funds to be used to accomplish the same, all of which is set forth in the Modified Plan; and WHEREAS, in its Resolution No. the Port Authority has determined that: (a) development or redevelopment described in the Plan is not reasonably expected to occur solely through private investment and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary; (b) other parcels that are not designated hazardous substance sites are expected to be developed together with a designated hazardous substance site; and (c) the subdistrict is not larger than, and the period of time during which increments are elected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site, and 14720. I. o i - yd`i WHEREAS, the City 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 and to the Port Authority's Resolution No. as E�chibit A. WHEREAS, it has been represented to the City that the Port Authority has performed a11 actions required by 1aw to be performed prior to the establishment of the District, including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jurisdiction over the property included in the District), and the holding of a public hearing; and WHEREAS, the Port Authority has asked that the City Council of the City of Saint Paul approve the modification to the Taac Increment Financing Plan for the University AvenueJ T.H. 280 Tax Increment Financing District to create therein a Hazardous Substance Subdistrict pursuant to Minnesota Statutes, Section 469.175, Subdivision 7. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows_ 1. The Modified Plan and the creation of the University Avenue/ T.H 280 Hazardous Substance Subdistrict, as approved by the Port AuChority Board of Commissioners, is hereby approved and adopted. 2. The City Council hereby recognizes and ratifies Port Authority actions relating to the establishment of the Hazardous Substance Subdistrict, specifically, the Port Authority compliance with all notice requirements and public hearing, which was held on April 24, 2001, at which time individuals present were given an opportunity to comment on the proposed Modified Plan. 3. The City Council has invesCigated the facts and hereby accepts and ratifies the Port Authority findings pursuant to Minnesota Statutes, Section 469.175, Subdivision 7, and set forth hereto as Exhibit A. Adopted: April 25, 2001 14720.1. C 1 _ 4,4�1 �XHrBIT A RESOLUTION � The reasons and facts supporting the findings for the creation of the University Avenue / T.H. 28Q Ha2ardous Substance Subdistrict as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 7 are as follows: Finding that the Subdistrict is a"Hazardous Substance Subdistrict. " The Subdistrict is a Hazardous Substance Subdistrict because the University Avenue/T.H. 280 site has been used for over 100 years by heavy indnstry including railroads, paint mannfacturing, waste haulers, food processing and tank and drum recyclers. As submitted in a Response Action Plan to the MPCA, the soil is heavily polluted with contaminants such as polychlorinated biphenyls (PCB), polynuclear aromatic hydrocarbons and heavy metals. A portion of the site falls within a Superfund site identified as the ADM/Hwy. 280 site. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be expected to occur solely through private investrnent and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary • The high cost of remediafing the parcels Sncluded in the Hazardous Substance Subdistrict makes the cost of land acquisition and Tinancing of the proposed improvements prohibitive to private developers without the assistance provided through the Hazardous Substance Subdistrict. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of the District. Finding that other parcels that are not designated hazardous substance sites are expected to be developed together with this designated hazardous substance site.• The Subdistrict is within the Westgate Office Industrial Park. The groposed development would complete the final phase of the park. 4. Finding that the subdistrict is not Zarger than, and the period of time during which increments are elected to be received is not Zonger than, that whicls is necessary in the opinion of the authorily to provide for the additional costs due to the designated hazardoau substance site. The duration of the Subdistrict will run the lesser of 25 years or the period of time necessary to recover fhe cost of the removal and/or remed"zation actions specified in the Response Action Plan. It is anticipafed that the cost of the removal and/or remediation acfions specified in the Response Action Plan will be $2,400,000, and that only a porfion of this amount, $150,000, will be recovered through the Hazardous Substance Subdistrict in approximately 25 years, based on current tax law. zoss � io�� q o�- �tay, ��x�� • . -, :-..,. �__ ��_� :. , . „ �__ . -.,.. __� ��__ .,. �__ - �_� _��'� Adopted by Councal: Date A�� a S` �� Adoprion Certified by Council Secretary By: �� F'� - Approved by Mayor: Date � � �� By � �� e uested by Department of:_ �� / By: Form Appzqve3�hy City Attomey �-� " B (`-''J ��`_ ' T ` /�_z� t� � � __ Approved by Mayor for Submissi n to Council BY � -E��'�-�� ) 14638.1 o�-�dy Paul Port Authority �� GREEN SHEET No l �i 33$ Johnson/Laurie Hansen On April 25, 2001 TOTAL # OF SIGNQTURE PAGES o[ruune+rowExrart arv�ou+n � j � — X l,� - rn.., � �� Cl/ rn.e�nx _ o .�,�� ❑,�,� o Y ��,�,� ❑ �cuP au t.ocanoras FoR sicninrurtE► Approval of the modification of the University Avenue/T.H. 280 Tax Increment Financing Plan to include a Hazardous Substance Sub-District and make the necessary statutory findings and elections in connection with the plan and the District. PLANNING COMMISSION CIB CAMMIITEE CIVIL SERVICE CAMMISSION Board r�a� n� v�� a �� a w�aea r« uae a�n�rte VES NO Has ihis persoNfirtn eva been a dh emPbYes� YES NO Doec ihis peisoMim V� a sidll rat riorma�lYC� Uy anY curtent ciLY empbyeel YES NO' Is Mis persoNfxm a farpeted vendaY7 YES NO Approval of this i�odified Tzx Increment Financing Plan to create a N_azardous Substznce 5ub-District will assist the redevelopment and remediation of the final phase of the Westgate O£fice Industrial Park. The proposed development will consist of a 98,000 square Poot light industrial of�ice/showroom building which will maximize job potential with approximately 225 jobs being provided on site. RFf;F_fVED APR 17 �991 11S4DVANTAGES IF APPROVED MAYOR'S O�FICE )ISADVANTAGES IFNOTAPPROVED Private Sector development is not likelv to occur due to the pollution and the high cost of remediation. AMOUNT OF TRANSACTION cosrrt�vaua euoe� (arec� oN� YEY NO SOURCE Tax Increment Financinq/ ,�crmryNw+�e6e Grant Receipts MFORM4TON (IXPWt� o1-4oy SAINT' PAt7L PoRT AU�xoxi't� TO: !�I' , .•� • ► Board of Commissioness (Meeting of Tuesday, April 24, 2001) DA'PE: Apsi! 18, 2001 Jiil T. Tong�� Laurie J. N en Kenneth R. Johnson SUBJECI': UNlVERSITY AVENUE(C.ti. 280 (WES7GATE) MODIFICATION OF TIF PLAN PUBLiC HEARIIdG RESOLUTION NO. ACTION REQUESTED Final approval of the modifica6on of the University Avenue/T.H. 280 Tax Increme�t Financing Plan to include a Hazardous Substance Sub-District. PUBLIC PURPOSE Approval of the Hazardous Substance Sub-District will provide partial funding for: • Development of a 98,165 square foot light industrial office/showroom. • Creation of approximately 225 jobs. • Remediation of 4 parcels in Westgate Industriai Park. BACKGROUND On September 22, 1987, the Board of Commissioners approved the creation of University Avenue/T.H. 280 Tax lncrement Financing District. The main focus of the district is to improve the tax base and expand employment opportunities. CSM Corporation is in the process of acquiring a portion of the Northem Star Company site, which is located in the University�f.H. 280 (Westgate) Tax Increment Financing District. CSM Corporation plans to develop this site as the final phase (CSM V) of the Westgate Office Industrial Park. The proposed development consists of a 98,165 square foot light industriai officelshowroom buiiding. CSM esfimates fhat 225 jobs will be created by the proposed devefopment. CSM is requesting the creation of a the site necessitates the cseafion payment of the costs for remediation. Hazardous Substance Sub-District. Pollution found at of the Hazardous Substance Sub-District to assist in iasaz�. 6 �-yoy The Port Authority and CSM have developed a financing plan for this project, which contains several different funding sources, inctuding tax increment finar�cing. The osiginai tax increment-financing pfan wilf be mod�ed to reflect the creation of the HSS. This mod�cation is documented in appendices A, B and C to the original plan. A copy of the originai plan and the appendices are attached for your review. A summary of this projecYs sources and uses is included as Appendix C of the financing plan. We recommend final approval of the modification of the Universiiy AvenuelT.H. 280 (Westgate) Tax Increment Financing Pian. 14647.1. o�-yoy TAX IN�REMENT FINAI3CING DISTRICT SEPTEMBER 22, 1987 MINNESOTA STATUTES, SECTIONS 273.71-273.78 FOR LJNIVBRSITY AVENUElT.H. 284 (WESTGATE OFFICE Ii�DUSTRIAL PARK) AMENDED FEBRUARY 27, 2001 TO 1NCLUDE HAZARDOi7S SUBSTANCE SiJB-DISTRICT t3973.1. 0�-�o`I Table of Contents A. Introduction — Identification of Need ........................................................................ ............. 3 B. Statutory Authority and Description of Dishict ...................................................................... 4 C. Statement of Purpose and Objectives ........................................................................ ............. 4 D. Development Program ..............•---.............................................................._.............. _............ 7 E. Description of TaY Increment Dislxict Properiy ..................................................................... 9 F. Development Activities Under Contract ............................................................................... 10 G. Expected Development Activities ....................................................................:.................... 11 H. Classificiarions of Tax Tncrement Financing District ........................................................... 11 I. Property in Acquisition ......................................................................................................... I 1 J . Estimates of Costs ................................................................................................................. 12 K. Idenrification of the Use of Tas Increments ......................................................................... 12 L. Limitation on Administrative Expenses ................................................................................ I3 M. Souces of Revenue to Finance Public Cost .......................................................................... 13 N. DurationoftheDistrict .........................................................................................................14 O. Impact on Other TaYing Jurisdictions ................................................................................... 14 P . Modifications ........................................................................................................................15 Q. Limitation on Duration of Tax IncremenC Financing Districts ............................................. lfi R. L'unitation on Qualification of Property in T� Increment District Not Sub}ect to Improvement ......................................................................................................................... 16 S. Annual Disclosure Requirzments ......................................................................................... 17 T. Requirement for Agreements with Developer ...................................................................... 17 U. Assessment Agreement .........................................................................................................18 V. Notification of Prior Planned Tmprovements ........................................................................ i 8 W. Administration of the TaY Increment Economic Development District ...............................18 X. Tax Increment Financing Accounts ......................................................................................18 Y. Estimate of Amount of Bonds Indebtedness ......................................................................... i 8 Appendix A- Amendment to Create Hazardous Substance Sub-District Appendix B- Hazardous Substance Sub-District Parcel List and Site Map Appendix C- Sources and Uses for the Hazazdous Subsfance Sub-District '13973.'I. a1-4a� Tax Increment Financi4g Plan A. Inimduction — Identification of Need The Boazd ofthe Housing and Redevelopment Authority of Saint Paul and the Council ofthe City of Saint Paul (the "City'� and the Port Authority of the Ciry of Saint Paul kave determinecl that a need exists ta establish a taz� increment financuzg district within t3ie boundaries of the University Avenue/T.H. 280 Redevelopment Area, in which are located various aging disfribution warehouses and railroad spur tracks. The District is bounded generally by Trunk Highway 280 (T.A. 280) on the east, the Burlinn on Northem Raikoad maiYiline tracks on the north, The Saint Paul-Minneapolis municigal boundary and Berry Street on the west, and by Ilniversity Avenue, with the addition of a hiangular piece at EILis Avenue and Curfew Street, on the south. Specific boundaries aze outlined in Appendix 1, attached hereto and made a part thereof. The tax parcels included in tUe Tax Increment Rinancing District are desczibed by property identification number and address in Section E of this plan. The area included in the District consists of approximately 62 acres occupied primarily by aging distribution warehouses and raikoad spur tracks. There are eight single-family houses along the eastern edge of the area separated from the South Saint Anthony neighborhood by T.H. 280. It is obvious that the area, wYuch has superb traffic access, is not being used to its full potential. Most of the buildings are in very poor condition, there are several vacant structures, approximately one-third of the site is underdeveloped, and the number of jobs and the assessed values of the properties are relatively low. The resulting image conveys a sense. of blight and probably discourages private reinvestment. The 1)ishict's exceltent access_is a result of the proximity to fke interchange �of T.H. 280 and I-44 and its service by University Avenue anfl Territorial Road. Public financial assistauce is necessary to accomplish the ob}ectives of the University Avenue-T.A. 280 Redevelopment Plan. It is highiy unlikely that the private market would even be v,*illing to take the risks inherent in buying and redeveloping the great amount of property involved. Private redevelopment would more 1'akely be piecemeal, uncoordinated, and unabie to assemble enough land, resulting in a less than safisfactory result in this pivotal location. There has been very little or not private interest shown in redevelopment of the District in many yeazs; property conditions have become steadily worse over time. Additionally, many of the present street surf'aces need to be reconstructed in order to alleviate structural deficiencies, pravide curb and gutter, and to repair the daznage that would be created by the replacement of the sanitary sewer and water lines. These utiliries, which exist throughout much of the District, need to be upgraded in order to meet contemporary industrial needs. In short, a successful industrial rebirth for the area requires a comprehensive solntion rather than perpetuating undesirable conditions that were created many years ago. 93913.1 B. Statutory Authority and Description of Llistrict The Saint Paul Housing and Redevelopment Authority is authorized to create a tax increment financing district pursuant to Minnesota Statutes, Sectiotts 273.71-283.78. 'Fhe tax increment district will be a redevelopment dishict, as defined in Section 273.73 subdivision 10, of the Minnesota T� Increment Pinancing Act, and wiu be estabtished in conjunctian with the Redevetopment Plan for the University Avenue/T.H. 280 District. Furthermore, the Port Authority of the City of Saint Paul and the Housing and Redevelopment Authority of the City of Saint Paul area establishing a Redevelopment Project which qualifies as a Redevelopment Proj ect and as blighted and deteriorated areas under the Housing and Redeveiopment Act, Section 462.421(13) and as an Industrial Development District under Minnesota Statutes 458.191. The purpose of these plans and project is to deveIop or redevelop sites, lands, or areas within the pro}ect area in conformance with the requirements of the above statutes and with the City of Saint Paul's Comprehensive Plan pariicnlazly the Land Usa, Eoonomic Development Strategy, and D'sstrict 12 District P1an sections and to implement recommendations of studies completed in order to 'vnplement the Ciiy's Comprehensive P2an. Specific boundaries of fhe District aze outlined in Appendix 1, attacked hareto and made a part t�ereof. C. Statement of Purpose and Objectives The HRP.l3'ort Authority will use tax increments and proceeds of tas increment notes/bonds payable therefrom to pay public costs of redevalopinent associated withfihe University Avenue/T.F3. 280 Redevelopment Project, as identified in the University Avenue/T.H. 280 Redevelopment Plau, which plan fiu set forth tfie objectives of the 3�tA/Port Authority for improvement of ffie Project and the Project Area. The HRA/Port Autharity has determined that a need exists to nndertake a redevelopment effort in the Project Area, which effort shall include acquiring and assembIing land, dzmolishing certain economicalty obsolate st�uctures, improving soiI quality, and extending and improving streets and utilities to provide attractive development sites for locatly-based firms aud to encourage companies from outside the City to relocate in Saint Paul. These efforts will improve the tas base and expand e�iployri�enY opportu�ties. ° �� The purpose of the L3niversity Avenue✓T.Ii. 280 Tas Increment Pinancing Plan is to i�npleznent the Redevelopment Plan and the following goals and obj ectives of the Comprehensive Pian of ttie City of Saint Paul, including the Land Use Plan, Economic Development Sirategy, and tha Dishict 12 Plan 1983 sections; and additional objectives in order to impiement these Plan policies: Land Use Plan "The City will contiaue to work with private devetopers and the Saint Paut Port Authoriry to facilitate the maintenance and creation of energy-efficient industrial pazks." "T'he City will develop and maintain an inventory of vacant sites and facilities suitable for industrial use to meet a variety of industrial needs" 13973.1. o � -�io�l "To ma�mi�.e employment opportunities and land uti3izarion in Saint Paul, labor-intensive industries— with high jobs per acre rations—should be encauraged to locate or stay in the City." "The City will investigate zoning provisions and fiscal and non-fiscal incentives which can be used to encourage labor-intensive indushy to locate in the City." The Land Use Plan designates the University AvenuelT.II. 284 Redevelopment Area ior redevelopment for labor-intensive development. Economic Development Strategy: "Saint Paul shall continue to provide assistance towazds industrial and commercial development, within a set of guidelines designed to ensure the most efficient use of. the City's available land and development resources." "Saint Paul sha11 increase the suppiy of land available for commerciaUindustrial expansion and development, focusing attention on specific parcel sizes and types required. The City, through the Port Authority, shall continue its policy of acquiring land for industrial purposes, where that land is not better suited for other piuposes. Examples inciude vacant or under-utilized railroad lands, or other parcels that are sufficiently removed from residenrial or commercial lands so as to not adversely afFect them." "Saint Paul shall pursue institutional policies and changes designed to improve its role as a facilitator or commercial and in�ustrial expansion and development ".. District 12 Plan 1983: "The District 12 Community Council should encourage private image improvement on a property-by- properiy basis along University Avenue. Problems which need to be treated include poor building conditions and treaiments, inappropriate signage, lack of screening, and lack of irees and shrubs." "The City should work with the community council to improve areas of the University Avenue corridor maintained by the City. Deficiencies include inconsistent sidewalk and boulevard surface treatment, frequent and dupIicarive pazking and directional signs, lack of trash containers and attractive street lighting, and inadequate landscaping." "Encourage private development of vacant lands in Energy Park, the former Sussel Company property and the Adnural Merchant Trucking property. Commercial and industrial uses with minimal negative iznpacts on nearby residenrial areas should be given highest priority consideration." T'he District 12 Plan designates the University Avenue/T.H. 280 Redevelopment Area for redevelopment into higher intensity industriai uses. In 1985 the District 12 Community Council completed a"Development Strategy for the West of T.H. 280", the Redevelopment Area. That strategy took the City's Comprehensive Plan recommendations and appIied them to the Project Area. That strategy recommended that a Redevelopment Project be 13973.1 undertaken by the Port Authority and the fiR P, in this azea. The Strategy recommended that the area be redeveloped for the creation of Iight industrial, office/research, and service related indus�ries witil an emphasis on labor-intensive activiiies. The District 12 Stra#egy also pursued the Distriet 12 Plan recommendations regazding University Avenue, emphasizing the need to impmve the physical image of the avenue and of T.Ei. 280 as gateways into Saint Paul and tlus major employment center. University Avenue - T.H. 280 Redevelopment Study Based on the District 12 Plan and the District 12 Strategy, The City of Saiat Paul completed a Redevelopment Study of the Project Area, fiuther refining Comprehensive Plan goals and objects as well. The Study defined the following goals for the Project Area: Fncrease the number of jobs in the Study Area. Desi� and mazket the Study Area primarily as a looation for small industrial-office businesses which have a high ratio of employees per acre. Increase the assessed valx�e of real estate in the Study Area. Attract high-quality land investments by creating a camprekensively planned industrial-business park which provides a develogment environment comparable to tize better-quality contemporary parks. Improve the image af the Study Area. Respond to the needs and desires of the community in the Redeve2opment of the- Study Area. The "Redevelopment Siudy" further elaboiates strategies which the Port Authoriry and/or the HRA will consider in the specific implementation activities to be conducted in the Pzoject Area and District. And the following objectives, important to the implementation of Comprehensive Plan recommendations and directions: To remova or rehabili#ate substandard and blighting buildings. To assemb"te adequate'ry size2� p�ee�s far �°.k;.xzelc�nent. _,, .. ._.. „ �o coordinate acquisition, site preparation and impzovements, pmvision of necessary public improvements and facilities, and to spread and equalize the cost thereof, in order to accomplish the entire project development at a cost reasanably related to the public purposes to be served. To provide private developers with information regarding zoning; land use eontrols and other City and Plan requirements; information and assistance in obtauung conshuction and permanent financing; information and assistance regarding construction of site and public unprovements and measures necessary to correct site conditions, ail in accoidarice with development agreements. To Snance the development costs of the Project by means of tax increment generated by the Project nnprovements and development 13973.1. a�.yoy To nnance development by a combinafion of private and public fnancing under authority and subject to the requirements of federal, state and local law, and ordinauce for the provision of revenue bond financing. D. Development Program The development program for tlus Project is further set forth in Section G ofthis Plan. Generally, the role of the public sector in coxnmerciai and industrial development has been to assemble and deliver development sites, and provide conirols and incentives in order to encourage and obtain needed develogment. Among the various mechanisms available to the City and its redevelopment agencies are: 1. Acquisition to acquire as authorized under the Housing and Redevelopment Act, Minnesota Statutes, an the Tax Increment Financing Act. (a) blighted azeas, buildings and other real property, where removing such can remove, prevent or reduce blight or the causes of blight; (b) open or undeveloped land blighted by virtue of conditions which have prevented normal development by private enterprise; (c) underused or inappropriately used land which may be converted to other uses recommended by the Plan; (d) lands or properiy necessary to complete assembly of pazcels suitable for redevelopment; (e} other real or personal property as necessary to accomplish the objectives of the Plan; and ( fl lands or property deemed to be unsafe or hazardous to the pubIac's health and safety. 2. Site Prepazation and Public Improvements (a) demolition, removal or rehabilitation of buildings and improvements; (b) activities to conect adverse physical characteristics of the faulty land division or i�adequate access or utility service or other development-inl�ibiting conditions; (c) activities deemed necessary or desirable to remove, reduce or prevent other blighting factors aad causes ofblight; (d) activities deemed necessary or desirable to unprove and prepare sites, including the conection of soil conditions, for commercial and industrial development or redevelopment purposes in accordance with the Plan; and 13973.1 (e) installation, construction or reconshliction of streets, utilities, and other public improvements or facilities as necessary or desirable for cazrying out Plan objectives. ( fl any studies or research that may be necessaty to detern�ine the traffic or Iand usa impacts of any development proposal andJor particular sireet and traffic pattern. (g) provisions of relocatiou services, assistance aud benefits in accordance with Minnesota Statutes Chapter 117. 3. Commercial and Industrial Financing It is tfie City and ifs redevelapment agencies intention to make availabie as appropriate and feasi�ble, and upon the sole determinarion of said agencies, affordable sources of financing to developers, corporatians, sma11 businesses and other organizations involved in the commercial, office, and industrial sectors. There are a number of financing mechanisms that caa be used as appropriate to accomplish the City and its redevelopment agencies goals and objecrives: (a) Industsial Development Revenue Bond Loans — This provides below market rate loans to finance manufacturing projects; {b) Urban Development Action Crrant Loans — T3us federaliy funded prograzn provides low interest, long-term Ioans to industrial, housiag, aad commercial projects with special efnpliasis on distressed areas; (c) Tax Increment Fivanciag — This locally administered tool provides a means by wkick to redevelop blighted areas, assist industry and create affordable housing; (d) Special Assessment Financing —'I'his locally raised and administered source o£financing provides benefiting property owners an affordable interest nte and Iong term financing mechanism by wluch to repay pubIic improvements; (e) SBA Sd3 Loan Guazantee Program — Tlus federally sponsored program provides Iaan b warantees to banks providing Ioans to qualified sma11 businesses; (i� Such other local, regional, state, federal, an private financing programs or mechanisms as may be a�ailable during the duration of the District. 4. Land and Other Financing Assistance The City and its redeve3opment agencies may enter into Iong-teim lease arrangements rather than land sale contracts where appropriate. One type of Iease arrangement would allow a developer to spread land costs over a longer period thus reducirtg cash eqaity requirements. 'i'he City and its redevelopment agencies may, where appropriate and at tkeir sole discretioa, also exacute agreements ta make geriodic assistance payments to developers to reduce the difference between 73973.1. o�.y�y 5 � E. fair market rents obtainable, aud deet service and expenses necessary to operate a project at a feasible level. In selecfing methods ofproject finance, the Port Authority and/or the HRA wiIl take into account the forms of oth� assistance availabie and negotiate with individual developers so that a method can be chosen which provides svfficient incentive for the developer to create quality product. Developer of Each Pazcel in District Developer wilI occur in accordance with Section G of the Plan on each parcel of the District either pursuant to private financing, or thtough redevelopment agencies in which latter case all developers skall execute min;mum ta�c assessment agreements with the Ramsey County Assessor. Promotion of Development of the Redevelopment Area To implement this Flas�, the Port Authority andlor the HRA will provide for, or cause to provide for, the following, as is necessary and appropriate. fiDMII3ISTRATION of those public processes and requirements deemed necessary to support ox allow developmenUredevelopment of properry to oocur in accordance with this Plan. If applicable and advisable, the Port Authority and/or the HRA will provide or cause to provide: (a) Coordinarion of project activity, financing and review with human service agencies, cifizen participation entities, and other state, regional and federal government agencies; (b) Initiation of vacations, rezonings, dedication of public rights-of-ways, or other pubIic actions as may become necessary to implement this Plan, in accordance with state and local statutes. This will be undertaken by the Port Authority, HIZA or the redeveloper. (c) Enforcement of building codes, design controls, site covenants, provisions to ensure compliance with state and local requirements relating to non-discrimination, income levels, environmental quality, faithful performance, and any other pubiic objectives relating to the purchase, development, improvement or use of the land; (d) Properiy exchanges. Description of Tax Iucrcment District Property '£he IJni�ersity Avenue/T.H. 280 Tax Tncrement Financing District tax parcels ideutified by Properiy Identification I3umbers and Property Addresses are the following: l. 292923330016 2580 University Avenue 2. 292923320037 2600 University Avenue 13973.'I � F 13973."I 3. 4. 5, 6. 7. 8. 9. 10. 11. 12. i3. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23, 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 29292332d030 292923320038 292923320029 292923320028 292923320027 29292332Q026 242923320019 292923320Q20 292923320023 292923320024 292923320025 292923320021 292923320002 292923320003 292923320004 292923320005 292923320006 292923320007 292923320Q08 292923320009 292923320010 292923320021 2929233200I2 292923320013 292923320014 292923320015 292923320016 292923230012 292923230013 292923230014 292923230001 2'9292'323��2' 292923230005 292923230015 292923230007 292923230008 29292323dQi6 Development Activities Under Confract 2545 University Avenue 25&3 University Avenue 2631 University Avenue 2633 University Avenue University 2635 University 2640 Territoriai Chazies Temtorial Charles Curfew 2618 Territoriai Tezritoriai Territoriat 958 Berry 2625 Territoriat EusYis Eustis 935 Eustis 935 Eustis 929 Eustis 927 Eustis 923 Eustis 9I7 Eusris 913 Eustis 907 Eustis 903 Eustis 899 Eustis 1000 Berry 965 Eustis 1005 Eustis Eustis i3massi�e� � � � - .. . Unassigned Unassigned Uaassigted Uuassigned Unassigned At the time this Plan was prepared, no redevelopment contracts kaiT been entered into aanong the City the HRA, tlte Port Authority, or other redevelopment agencies, or a third party. See Section G for development activity contemplated during the duration of the Universiry Avenue/T.H. 280 T� Inerement Financing bistrict o�-yo�l G. Expected Development Activities A more predictable schedule o£ development activities can be estimated upon the resolution of two major issues relating to the Project District. As each of these issues is resolved, private development and other public development activities are expected to be commenced at a scheduIe, level, and sequence consistent with normal indushy standards associated with a proj e�t of this magnitude. The two prominent issues involved in the success of the overall design of this new industriat-office park, and of the design of the individual sites, aze: 1. the tuneliness of acquisition and subsequent removal of all blighted structures, and; 2. the creation of a new develapment within unified desi� guidelines. Consequentiy, since the plan for land acquisition is important in achieving the desired change ofimage, and in indicating a public commitment to the project, and in eIiminating the negative effect which a prolonged acquisition schedule would have on property owners: the entire tract of land is proposed for immediate purchase, and; 2. building design and landscaping guideIines should be adopted as presented in the University Avenue(T.Ei. 280 Redevelopment Plan, Sectian N, "Land Use", subsections A-E and Section V, subsecrion E, "Urhan Design GuideLines," and subsection F, "Other processes for Imple�nenting Land Use Designafions." Those specific portions of the Redevelopment Plan are included in Appendiac 2, attached hereto and made a part thereof. H. Classifications of Ta�c Increment Financing District The City Council of the city of Saint Paul, Minnesota, in deteiminiug the need £or a Tax Increment Financing Districts in accordance with Minnesota Statute, Section 273.71-273.78 inclusive, finds that the district to be established as a redeveIopment distsict pursuant to Minnesota Statutes, Secrion 273.'73, Subdivision 10. Furthermore, the Port Autharity of fhe City of Saint Paui and the Housing and Redevelopment Authority of the City of Saint Paul are establishing a redevelopment project which quaIifies as redevelopment project in blight and deteriorated areas under the Housing and Redevelopment Act, Section 462.421 (13) in as an indushial development district under Muuiesota Statutes 454458.191. I. Property in Acquisifion The land use plan proposes to remove most of the e�sting businesses and all of the housing the study area The HRA may require by eininent domain certain privately owned parcels of land in the land use area necessary to carry out the project for disposition for redevelopment in accordance with the project 13973.1. redevelopment plan at a consideration covering acquisition cost including relocation of displaced occupants. � Estimates of Costs Financing needs of the 280 Taa� Increment Financing District Property Acquisition Building DemoIition Residents and Business Relocation Sireet and Utiiity Tmprovements Street Landscaping and Lighting General Grading DiscounY./Cost ofIssuaace Debt Service Reserve Capitalized Interest Projected Debt 3ervice Shortfatl Administration Legal Miscellaneons Contingency Total �io,zz�,00a 1,26b,500 1,319,000 1,237,000 166,45Q 150,000 735,000 2,100,000 5,703,7�2 1,450,000 100,000 75,000 100,000 715,298 $zs,zss The total amount of bonded indebtedness for the 280 Redevelopment Project is $25,285,000. Identification of the Use of Tax Increments Pursuaut to Minnesota Statutes Section 273.75, Subdivision 4, all revenues derived from the tas increment dishict shall be used in accordance with this Tas Inerement Financin� Plan. The revenues shall be used for the following purposes: 1. 3. C� 5 To pay principal of and interest on bonds issued in a�ci of L'�e-�''fs�:c:, if.zny; _ To repay any loans including interest on these loans as authorized by the FiRA/Port Authority to pay for any site and public unprovement costs; To fund and repleiush a debt service reserve far tke project of principal and interest an bonds used to finance a project; To pay for project costs and administrative eacpenses as identified in the project budget described in Section 7 above; and ° To pay for project costs in addirion to those identified in the project budget, which are determined by the HRA/Port Anthority to be necessary to the accomplislunent of the redevelopment and tax inerement financing plans. 93973.7. o� -�.e�y L. M. Limitation on Administrative Eapenses Pursuant to Minnesota Statutes Secrion 273.75, Subdivision 3, as amended, aduvnistrarive expenses ue limited to ten percent (10%} of the total taY increment eapenditures. "Adsninistrative expenses" means all expenditures of an authoriry other than amounts paid for the purpose of land or amounts paid to contractors or others providing materials and services, inciuding architectural and engineering services, directiy connected with the physical development of the real property in the district, relocation benefits paid to our services provided for persons residing or businesses located in the district, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 273.77. "Administrative expenses" includes amounts paid for services provided by bond counsel, fiscal oonsultants, and plamung and economic development consultants. Sances of Revenue to Finance Public Cost It is intended that the enrire public project cost, to the extent possible, be paid from the tas increment generated by the redevelopment. This does not include the HRAlPort Authority from using other funds, at its discretion, to pay such cost. Estimated Revenue Sources of revenue to fnance public costs 1. Tax Increment Estimate: 280 Redevelopment Proiect (estimate) Construction and Land Cost Total Estimated Market Value Total Assessed Value at 43% Assessment Ratio Original Assessed Value Captured Assessed Valuation Captured Assessed Increment - $45,855,000 - 36,684,000 - 15,774,120 - 2,S1Q,103 - 13,26�4,017 - 1,684,530 The increment resulting from the above captured value will be used in the following categories in order: To pay principal on interest and bonds to finance project 2. To fund and reglemsh debt service account for bonds issued to finance project To finance or otherwise pay financing and public development costs of the prajact pursuant to Minnesota Statutes, Chapter 462 To pay administrafive expenses and ofher project related costs. 13973.7. 5. To retum to County of Ramsey for distribution to impacted taxing juzisdicrions_ �� C�� Duration of the District Pursuant to Minnesota Statutas Section 273.75, Subdivision 1, the maximum duration of a tax increment redevelopment dishiot is 25 years from the date of receipt of the first increment by the authority. It is estimated that the HRA could cotlect taic increments on the district through the year 2014. Impact on Other Taxing Jurisdictions The overlapping jurisdictions upon whose assessed valuatioa this tax increment fivancing plan could have an impact aze: - Independent School District No. 625, whose boundaries aze coterminous with those of the City of Saint Paul. - County of Ramsey, to whose assessed totai valuation the City of Saint Paul contributes about 54%. - Housing and Redevelopment Authority of the City of Saint Paul, wluch is the requesting authority. The HRA may be considered as being identical witk the City af Saint Pau1 for purposes af this analysis. - Port Authority of the City of Saint Paul, whose powers of levy and uses of property ta�c revenue is limited. For this analysis, they may be treated the same as the City of Saint Paul. - Metropolitan authorities — such as the Metropolitan Council, Metropolitan Auport Commission , Metropolitan Transmit Commission, Metropolitan Waste Control Commission, and Ivtetropolitan Mosquito Control DistricY. Of these metropolitan authorities, only the Metropolitan Council, Metropotitau Trausit Commission and Meimpolitan Mosquita Conk Distriet levy on real estate. Of these overlapping ta�ting authorities, the only two which could be affected more than nominatly by this taac, increment financing plan would be Independent School Disirict No. 625 and the County of Raansey.� �� Assuining captured assessed value of build-out of $13,204,107, in accordance with Section N hereof, and a constant 1986 millrate o£ 127 mills, the district will generate an annual tax increment of $1,676,910. The parceatage of this increment contributed by the various tasing jurisdictions, if tke development had occurred without public intervenrion, is shown below. Table 1 P.ercent of Tax Increment and Excess Tax increment Atinbutab2e to Taxirig Jurisdictions Current Taxing 7urisdiction Mills Percent Annual Tax Increment 13973.7 o� -yoy City of Saint Paui 36.850 School District #625 50.494 Ramsey County 32.225 Ofher �.494 127.137 29.4 40.6 25.7 43 100.0 $ 493,017 680,825 43�,965 72,108 $1,676,910 The following tabie represents the additional mills that would have to be levied to compensate for the loss of taac dollars in estimated taY increments and excess tas increments for each taxing jurisdiction. The tax increments derived from the project included in the talc increment district woutd be available to auy of the taxing jurisdictiovs were it not for public intervantion by the City. Aithough the increases in assessed value due to development will not be available for the application of the mill ievy for the durafion of the tax increment financing district, tlus new assessed value could eventuaLly permit a mill levy decrease. If it could be assumed that the captured assessed value was available for each taxing jurisdiction the non-receipt of t� dollars represented as tax increments may be detemuned. This determinafion is facilitated by estima6ng how much the mill levy for property outside of the taY increment financing district and the Hammond distcict wouid have to be increased to raise the same amount of tas dollars in each tazcang jurisdiction that would be available if the projects occurred without the assistance of the City. Taxing 3urisdictions Ciry of Saint Paul Schoal District #625 Ramsey County Table 2 Imvact on Taxin� 7urisdictions fif Development Cauld Occur Without Public Assistance) Adjusted* 19986 Assessed Value Required Mills Annual Tax Inerement $1,781,595,372 $1,781,595,372 $3,378,954,041 *District Assessed Va1ue Subtracted .000277 .000382 .000128 $493,011 $680,825 $430,965 Table 2 is relevant only if otte assumes the development would have occurred without tlae e�stence of the district and the development program. If this assuxnption is incorrect, and the Authority believes it is, then the only real impact on the assessed values of the other taxing jurisdicrions is: 1. Any inflationary values from the district which have been attributable to the tax base of these taxing jurisdictions will be lost during the duration of the district; and 2. Upan termination of the district, a11 taxing jurisdietions will benefit from the entire then-current assessed values. la Modifications 13973. i In accordance with Minnesota Statutes Section 273.74, Subdivision 4, a ta.z increment futancing ptan may be modified by an authority, provided that any reduction or ettlargement of geographic azea of the project or tax increment financing district, increase in amounY of bonded indebtedness to be incurred, including a detarmination to capitalize interest on the debt if that deternvnation was not a part of the original pian, or to increase or decrease the amount of interast on the debt to be capitalized, increase in the portion o£the capturecl assessed value to be retained by the auYhority, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the authority shali be agproved upon the notice and after the discussion, public heating and findings required fflr approval of the originaZ plan; provided that if au authority changes tke type of dis�ict from housing, redevelopment or econornic development to anotiier type of district, fbis change shaI1 not be considered a modification but shall require the authority to follow tke procedure set fortk in Sections 273.71 to 273.78 for adaption of a new plan, including certifccation of the assessed valuatiou of the district by tl�e county auditor. 'The geograpIuc azea af a tax increment financing district may be reduced, but shall not be enlazged after five years following the date of certification of the origuta3 assessed value by the county auditor or &ve years from August l, 1979, for taY increment financing districts authorized pzior to August 1,1979, except that development districts created pursuant to chapter 472A prior to August 1, 1979, may be reduced but shali not he enlarged after five years following the date of designa6on of such district. Q. Limitation on Daration of Tax Increment Financing Districts Pursuant to Minnesota Statutes Section 273.75, Subdivision 1, "no taY inctement sha11 be paid to an authority tkree years from tlze date of certification by the County Auditor unless within the thre�year period (a} bonds haue been issued pursuant to Section 7 or in aid of a project pursuant to auy other iaar, except revenue bonds issued pursuant to chapter 474, prior to the effective date of the Act; or (b) the authority has acquired property wittun the district; or (e) the authority has constt¢cted or caused to be eonshucted public improvements within the district..." The Housing and Redevelopment Anthority must therefore issue bonds, or acquire property, or construct or cause pub3ic improvements to be eonstracted by 1985 or the Office of the County Auditor may ctissoive the ta7c inerement distriet. R Limitarion on Qualificarion of Properry in Tax Increment District Not Subject to Improvement p�h - `- • u 2 7 '' � g ' t ursuane date of ''t 'to Minnesota Sta�uie� Szc�3 27.,.. _S, Sukd�vision 6, if after four years from th fication of the oriainal assessed value of the taac increment fznancin distnc p'" " f fo'Seciion ' 273.76, no demolition, rehabilitation, construction or rettovation of properry or other site prepazation, including impmvement of a street adjacent to a parcel but not installation of utiliTy service includin; sewer or water systems, has been commenced on a parcet located wiflvn a tax increment financing district by the authority or by the owner of the parcei in accordance wifh the fa�c inerement financing plan, no additional tax increment may be taken from that pazcel, and the originai assessed value of the taY increment financing district. If the authority or the owner of the parcel subsequenfly coinmences demolition, rehabilitataon or renovation or other site prepazafion on that pazcel incIuding improvement of a street adjacent to that pazcel, in aceardance witki the t� inerement finaucing plan, the authority shall certify to the county auditor Uzat tke acrivity has commenced, and the county auditor shall certify the assessed value thereof as most recently certified by the commissioner of revenue and add it to the original assessed value of the tax inerement financing district. For purposes of this subdivision "parcel" 'i 3913.7. ��-y�`l means a tract or plat of land established prior to the certificatioa of the district as a single unit for purQoses of assessment. S. Annual Disclosure Requirements Pursvant to Minnesota Statutes Section 273.74, Subdivision 5, a city must file an annual disclosure report for all tax increment financing districts. The report shatl be frled with the schooi boazd, county boazd and the vlinnesota Deparfinent of Energy, Planning and Development. The report to be filed by the City Administrator as district administrator shall include the following information_ The amount and source of revenue in ffie account; 2. The amount and purpose of expenditures from the account; 3. The amount of any pledge ofrevenues, including principal and interest on any outstandiug bonded indebtedness; 4. The original assessed value of the district; The captured assessed value retained by the authority; 6. The captured assessed value shared with other taxing districts; and 7. The tax increment receivad. . The annual disclosure report is designed to be a two-way medium of information disseuiination for both „: the Office of the Counry Auditor and the City. Should the auditot want additional information from the ��-. � authority regarding its tax increment financing activiries, such information should be requested prior to submission of the annuai disclosure report by the autharity. Similarly, the authority may utilize the annuai disclosure report as a means for requesting information from the Office of the County Auditor. Additionally, the authority must annuaily publish a statement in a newspaper of general circulation in the municipality showing the tas increment received and expended in that year, the originat assessed value, the captured assessed value, amount of outstanding bonded indebtedness and any additional information the authority deems necessary. T. Requirement for Agreements with Developer Pursuant to Minnesota Statutes 5ection 273.75, Subdivision 5, no more than 25 percent, be acreage, of the property to be acquired within a project wtuch contains a redevelopment distriat, or ten percent, by acreage, of the property to be acquired within a project which contains a housing or economic development district, as set forth in the tax increment financing pian, shx11 at any time be owned by an authority as a result of acquisition with the proceeds of bonds issued pursuant to Secrion 273.77 without the authority having prior to acquisition in excess of the percentages concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the authority should the development or redevelopment not be completed. '(3973.1. The agreements are only required if property is to be acquired witk bond proceeds. U. tlssessment Agreelneut Pursuant to Minnesota Statutes, Section 273.76, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 2'73.76, Subdivision 8, enter into an agreement in racordahle form with ttte developer of property within the tax increment financing district wIuch estabIishes a minuvum mazket value of fhe Iand and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the caunty assessor who shaSl raview ti�e plans and specifications for the improvements cottstructeci, review the market value previously assigned to the land upon which the improvements aze to be constructed and so long as the minimum mazket value contained in the assessment agreement appears in the Judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. V. NotificationofPriorPlannedImprovements Pursuant to Minnesota Statutes Section 273.76, Subdivision 4, the authority shall, after due and diligent search, accompany its request for certif cation ta the county auditor pursuant to Subdivision i, or its nofice of district enlargement pursuant to Section 273.74, Subdivision 5, with a iisting of aIl properties witlun the tax increment financing district or uea of enlargement for which building pernuts have been issued during the 18 months immediately preceding approval of the ta�c increment financing pian by the municipatity pursuant to Section 273.74, Subdivision 4. Tke county anditor shall incrsase the original assessed vafue of the district by the assessed valuatian of the improveznents for whick the building permit was issued, excluding the assessed valuation of improvements for which a building permit was issued during the three montk period immediate2y precediag said approval of tke t� increment financing pian, as certified by ffie assessor. W. Administration of ttie Tax Increment Economic Development I}istrict Adminisfration ofthe taY increment redevelopment d%strict wiII be handled by the Housing and Redevelopment Authority through the Department of Planning and Economic Develogment. X. TaY Increment Financing Accounts The tas increment received as a resuit of increases in the assessed value of ttie ta7� increment redevelogment district parcels wi11 be maintaivac� in the e�sting tax increment account by tke City Treasurer. The tax increment account will be separated from all other municipai development district accounts and �rant accounts and expen@ed ottly upoa sanctioned redevelopment activities identified in the finance pIan as amended. Y. Estimate of Amount of Bonds Indebfedness 280 Redevelopment Projecf 'I3973.1. o,_•�„y The City may finance pubfic irnprovements by saie of tas increment bonds. Inctement revenues may be nsed to fund a debt service reserve and to pay tne costs of any authorized credit enhancements needed to market the bonds. This does not preclude the HRA or Port Authority from borrowing funds to meet project costs. Such bonowing may be repaid from TaY Increment proceeds. 43973.'I o� -�aoy Appendix A 13973.1 o � -�to4 University/T.H. 280 (Westgate Office Industrial Park) Hazardous Suhstance Sub-District Amendment Dated Apri124, 2001 Creation of Hazardons Substanee Snb-District The taac increment plan relates to the creation within the Tas Inorement District of a Hazardous Substance Sub-Dislrict (the "HSS") pursuant to Minnesota Statutes Section 469.175, Subdivision 7. 2. Need and Public Purpose The University/T.H. 280 site has been used for over 100 years by heavy industry including railroads, paint manufacturing, waste kaulers, food processing and tank and divrn recyclers. Many current and previous properiy occupants stored, used, and disposed petroleum and hazazdous materials at the property. The heavy pollution at this site has resulted in a lack of private investment in this azea. As a result, the property has not provided adequate empioyment opportunities and has not contributed to the tax base and general economy of tlte Ci1y, the school district, the County and the State to its full potential. CSM Coiporation plans to develop the final phase of the Westgate Office Industrial Pazk. The proposed deveJopment consists of an 98,165 squaze foot light industrial office/showroom building. It is necessary that the Port Authority exereise its port authority powers under state law to develop, unplement and finance a program designed to encourage, ensure and facilifate the redevelopment of this property. This redevelopment will further accomplish the public purpose specified in tlus paragraph. Objectives for improvements in the Westgate Office Industtiai Park A. Provide job opportunities for 5aint Paul residents. Based on similaz development projects CSM Coxporation has completed in the Westgate Office Industrial Park and surrounding area, CSM estimates that up to 225 jobs may be created by the proposed development. B. Develop a light indnstrial ofFice/showroom buiIding in the Westgate Office Industrial Park. The site to be developed in the Dastrict will provide approximately 7.5 acres of developabte Iand. The proposed deaelopment consists of a 98,165 squaze foot building. Site remediation is expected to commence during the third quarter of calendar year 2001 and construction of the project zs anticipated to be complete before 3une 1, 2002. C. Expand the ta� base of the City of St Paul. It is e�ected that the taYable market value of site may increase by approximately $5,800,000 once the development is completed. This value will corne fram private 13973.1. development of approximately 98,165 square foot building with a high level of office finish and an anticipated construction valae of $66.�0 per square foot. The tasable value of new facilities is assumed to be 90% of their construction cost. D. Hazardous SnbsEance Remediation CSM Corporatian wi11 undertake the removal and retnediation of the soiZ, as specified in a Response Action Plan that was approved by tFie MPCA. Contaminants, such as volatile organic compounds, polychlorinated biphenyls (PCB), polynuclear aromatic kydrocarbons aud heavy metals were i@entified on the site. 4. Descriptiott of the Project's Sonrces and Uses The following, as required by Section 469.175, Subdivision 1(5}, aze estimates of the (A) cost of the Project, including administration expenses; (B) sources ofrevenue to fittance or otfierwise pay public costs; (C) the original taY capacity and captured tax capacity of the HSS District and (D) the duratiou of the F3SS bistrict's existence. A. Cost of the Project The total cost of the Project, assnming a lugh Ievel of office finish, is estimated at $9,SQO,Q00. B. Sources of Revenne 'The following aze the likely sources for funding the total Project: 1. TaY Increments Based on the assumptions set forth above, ta�c increments, net of up to 10% for adiui�istration expenses, are anticipated to equal$175,000 annually. 2. 5tate of Minnesota Department of Trade and Economic Development This agency has awazded funding in the amount of $50�,000 for the redevelopment of this polluted szte. 3. �rivate8ec�orCa��ir�aaors • ADM $800 • Northern Staz Company 60,000 • Burliagton 2vorthem To be datermiued 4. Gap Fundin� CSM Investors II, Inc. has committed to completing the project These funds wi21 be identified prior to full implementation of the Project. ' EuTlington Northem has not yet committed to this contn'bution. CSM is currendy in negotiations with Burlington Northem CSM Investors II, Inc, is prepazed to cover any gap fimding required to complete the project. t3973.4 0 1-�1 0 `! C. Original Tag Capacity and Captured Tas Capacity The ori�nal tax cagacity of the HSS is �4,573. Expe�ted remediation �penditures of $2,400,000 deducted from the original ta.x capacity results in the masimum capiured tax capacity allowed in the amount of �4,573. D. Dnration of the Hazardous Snbstance 5ub-District The original Taac Increment Dishict was certified in 1988. The duraiion of the original district runs 25 years from the first receipt by the Port Authority of tax increments, wl�ich wiil be through calendar year 2Q16. The duration of HSS District will run the lesser of (a) 25 yeazs or {b} the period of time necessary to recover the cost of the removal or remedzarion actions specified in the Response Action Plan that was the foundation for the creation of the HSS District. 5. Identification of all parcels to be included in the HSS Attacked hereto in Appendix B is a list of the Property Identification Numbers for all properties to be included in the HSS District, a map showing the Project area and a legal description idenrifying the boundaries of the HS5 District. 6. Hazardous Substance Snb-Bistrict Certification of the HSS will allow taxes attributable to the base value of the District to be used to reimburse or pay all or a portion of the estimated $2,400,000 of pollution testing and remediation cosis. As was mentioned in Secfion 4(C} above, the HSS will cause taxes on the base value of the District to be lost until such time as the pollution costs are satisfied. Total taxes payable in 2QQ0 were appmximately �6,951. As mentioned above, a Response Action Plan was submitted and approved by the MPCA. The Port Authority has studied the Tax Increment District and concluded the development would not reasonably be expected to occur solely through private investment and taz� increment otherwise available from the District, and therefore the use of the FiSS is deemed necessary. Loca1 Contribution Requirement For tax increment financing districts which request certification after 3une 30, 1994, Minnesota Statutes, Section 273.1399, Subdivision 6(d) provides that the Port Authority may be exempt from lacal gavernment aid or homestead and agriculturai credit aid penalty if the Port Anthority andlor the City of St. Paul makes a local contribution to the Project equal to five percent of the talc incremene. The Port Authoriry elec#s to make the local contributions in lieu of the state aid penalty. Five percent of the future value of the tax increments expected to be collected from the HSS District is approximately $5,716. The Port Authority will make an upfront conhibution (rather than a yeazly contribution) equal to 50% of the amount identified above in Section 4(B)(2). This amount constitutes a locai contribution in the amount of approximately $250,OQ0. All components of the local contribution are expected to be paid prior to December, 2001. Pursuant to Section 273.1399, Subdivision 6(d)(2), if the Port Authority fails to make the required coniribution for any year, the state aid reduction will apply that year. Ttie state aid reducrion will be equal to the greater of (A) tbe required local contribution (5°l0 of t� increments collected that year) or (B) the amount of the aid reduction that applies under Secrion 273.1399, Subdivision 3. 13973.1. Fiscal Disparities The Port Authority and the City have elected to compute Fiscal Disparities contribution for the Dishict in accordance with Secfion 469.177, Subdivision 3, pazagraph a. i3973.Y G4-4A'{ Appendix B 13973.1 o�..�loy, Port Authority of the City of St Paul UNNERSITY/T.H. 280 (WESTGATE OFFICE INDUSTRIAL PARK) Hazardous Substance Sub-District and Parcel List Hazardons Substance Sub-District Legal Descriptioa: Parcel 1: Outlot C, Westgate Addition No. 3, accordinJ to Ehe recarded plat thereof, Ramsey County, Minnesota. Parcel 2: That part ofLot 2, Block 1, Westgate Addition No. 3, according to the recorded plat thereof, Ramsey Counry, Miinnesota, which lies Northerly and Easterly of the following described line: Commencing at the Southeast corner of said Lot 2; thence South 89 degrees 47 minutes 02 seconds West, along the South line of said Lot 2, a distance of 455.75 feet to the point of begnning of the line to be described: thence North 00 degrees 08 minutes 03 seconds West, a distance of 22�.50 feet; thence South 89 degrees 36 minutes 54 seconds West, a distance of 167.12 feet to the West line of Southwest'/o ofthe Northwest'/4 of Secrion 29, Township 29 North, Range 23 West of the Fourth Principal Meridian and there said line terminates. Parcel3: That portion of the Southwest'/< of the Northwest'/a of Section 29, Township 29 North, Range 23 West of the Fourth Principal Meridian, Ramsey County, Miimesota, described as follows: Commencing at the Southwest comer of said Southwest 1 /4 of the Northwest 1 /< of said Section 29: thence Northerly along the West line of said Section 29, a d3stance of 971.2 feet to the actual point of beginning of the tract of land to be described; thence continuing l�ortherly along sid West iine of Section 29 a distance of 212.5 feet; thence Easterly, deflecting 89 degrees 44 minutes to the right, a distance of 410.00 feet; thence Southerly, deflecting 90 degree 16 minutes to the right, a distance of 272.5 feet; thence Westerly deflecting 89 degrees 44 minutes to the zight, a distance of 31�.76 feet; thence Northwesterly, deflecting 68 degrees 27 minutes 32 seconds to the right, a distance of 40.85 feet; thence Northerly, deflecting 21 degrees 32 minutes 28 seconds to the right, a distance of 22 feet; thence Westerly, deflecting 90 degrees 0� minutes to the left, a distance 78.97 feet to the point of begianing. Parcel 4: Which lies Nortberly and Easterly of the following described line: Commencing at the Southeast corner of said Lot 2; thence South 89 degrees 47 minutes 02 seconds West, along the South line of said Lot 2, a 08 minutes 03 seconds distance of 455.75 feet to the point of beginning of the line to be described; thence North QO de�rees West, a distance of 227.50 feet; thence South &9 degrees 36 minutes 54 seconds West, a distance of 16712 feet to the West line of the Southwest 'l< of the Northwest i/4 of said Section 29 and there said Iine teiminates. Parcei List: 29-29-23-23-0031 29-29-23-23-0034 29-24-23-23-0004 29-29-23-23-0003 13973.'1 ( � R 7# i5 *z .� � i p{ 3 � �. � t b� r ! I� � �� d i �� ;�� rai s� �� Ft ��t� �E 4t�� -,� �l�i�� , 4��f��2;�zi'��' �x �t��r3F ��i�i��{ ��i � 0 0 ¢ .� D Q l� � E � � iT —f—z—� � 0 4� V v � v � �Z ' NOISI�t (QBnS � � � �� 8€� �L�� Z � � / � O _ � � ! 'ON S� b'Ol l�7(t b � . � K P � e �� a t� '�{ a� be-yoy t�.,l�� a,g��,� y�`€�il �it � g�� Et�jr �f�EE�i� �F c: � �� PS � 0� .� �b Is ` ��$li��s`��xl�� •�� 6��(�.�OSpe � �i/_ f f . ,z —s—z—� .� F Appendi� C o�-yoy 13973.1 �� oy Universitv Avenue/T.H. 280 (Westgate Office Industrial Park) Aazardous Substance Sub-District Sources and Uses of Funds Sources• CSM Investors II, Inc. ADM Cantabution Northern Staz Contnbution Butlington Northem Contr�ufion' TIF Available for Project Hazazdous Substance Sub-District DTED Grant Total Sources Uses• Hard Cosfs: Acquisirion Environmental Testing Enduonmental Consulting Additional Boring and Analysis OvezbucdenlMobilizarion Excavate Foots Stabilize Hot Spots Regrading Site Clean Fill on Site Asphalt Cap Unusual Builtiing Costs (Piles) Demofition Costs Clean up Conringency Shel1 Building Costs O�ce Tenant Improvements Wazehouse Tenant Improvements Construction Contingency Total Hazd Costs Soft Costs: ArchitecturaUEngineering City Fees LegallSurvey{TitlelRecording Leasing Commissions Lender Fees Loan Fees Developer's Overhead Soft Cost Contingency Interim Interest Total Soft Costs Totat Uses 56,584,781 800,000 60,000 Q 1,403,657 156 500,000 $9,504,845 $ 805,770 150,000 100,000 50,000 56,905 714,600 676,500 169,135 244,540 265,763 300,000 165,369 289,281 2,944,950 1,472,475 17b,697 137.824 $8,719,8Q9 $ 147,248 29,450 40,000 184,059 17,500 51,924 I50,000 18,605 146,250 � 785,036 �9,504,845 ' Burlington Northem has not yet comxnitted funding to this project. CSNI Corporation is currendy in negoriations with Burlington Northem. 13973.7. o� -y�„ Resolution No. RESOLUTTON OF TFIE PORT AUTHORIT'Y OF TFIE CITY OF SAINT PAUL VJHEREAS, On September 22, 1987, t1�e Port Authority of the City of Saint Paul (the "Port Authority'� adopted its Resolution No. 2858, creating the University Avenue / T.H. 280 TaY Increment Financing DistricE (the "Dishict"), and, in connecrion with the creation of the District, the Port Authority Board approved the tax increment financing plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.048 through 460.068, inclusive; and Minnesota Statues, Secrions 469.174 through 469.179, inclusive; and WF3EREAS, the Port Authority has been advised that certain parcels within the District require envixonmental remediation before such parcels can be developed, and, in an effort to fiuther develop the District, it is proposed that the Port Authority establish a Hazardous Substance Subdistrict within the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; and WHEREAS, Port Authority management has previously prepared and submitted a Response Action Plaxt {"R AP'� to the Minnesota Pollution Control Agency (the "MPCA"), as required by Minnesota Staiutes, Section 469.174, Subdivision 17, and received the necessazy approvals from the MPCA for the RAP in September, 2QQ0; and WfLEREAS, on February 27, 2001, the Boazd of Commissioners of the Port Authority of the City of Saint Paul adopted its Resolution 1Vo. 3873 requesting that Port Authority managemenC calls for a public hearing to consider the mod'afication of the University Avenue i T.H. 280 Ta7t Increment Financing Dishict (the "District") to create a Hazaxdous Substance Subdistrict (the "SubdistricP'), authorizing Port Authority management to finalize the tax increment financing plan related thereto (the "Modified Plan"), and directing Port Authority management to submit the necessary notifications to the Ramsey County Auditor and the Clerk of the Saiut Paul School Board; and WHEREAS, Pozt Authority management has transmitted the necessary notices, has now finalized the Modified Plan and, pursuaut to notices published as required by statute, has held a public hearing on the Modified Plan, at which all persons present were given an oppoittulity to comment on the proposed Modified Plan; and WHEREAS, Port Authority management has prepared a budget for the cost of removal and remedial aetion specified in the RAP; and 74636."I . 0� -�1oy WFTEREAS, the Port Authority hereby detennines that: (a} development or redevelopment described in the Plan Ss not reasonably expected to occur solely tluough private inveshnent and taY increment otherarise available, and therefore the hazazdous substance subdistrict is deemed necessary; (b} other parceIs that aze not designated hazardous substance sites ate expected to be developed togefher with a designated hazardous substance site; and (c) the subdistrict is not Iarger than, and the period of time during which increments aze elected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site has set forth the reasons and supporting facts for each of these detemiinations in wziting, attached hereto as E�ibit A. WHEREAS, the Port Authority has performed all acrions reqnired by law to be performed prior to the estabiishment of the District, including, but not limited to, notification of Ramsey Coiu�ry and School District No. 625 (which have taxing jurisdiction over the property included in the District), and the holding of a public hearing. NOW, TF3E1tEFORE, BE IT RE30LVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foilows: l. The Modified Plan is hereby approved and adopted, and shall be placed on file in the office of the Port Authority. 2. The Port Authority elects to make a quaIifying local contriburion in accordance with Minnesota�Statutes, Section 273.1399, subdivision 6(d), in order to qualify for exemption from state aid losses set forth in Sectian 273.1399; sulidivision 6(c). 3. Port Authority management is hereby authorized to submit the Modified Plan to the City Council for its review and approval. 4. Upon approval of the Modified Plan by the City Council, Port Authority management, along with the Port Authority's legai counsel, is hereby authorized to proceed with the implementation of the Modified Plan and for this purpose to negotiate and finalize all further plans, resolutions, documents and contracts necessazy for this purpose. zossiiw� 2 O�-�� 5. Upon approval of the Modified Pian by the City Council, Port Authority mauagement is hereby authorized to forward a copy of the Plan to the Ramsey County Auditor and the �Iinnesota Depazhnent of Revenue pursuant to Minnesota Statutes, Section 469_ 175, subd. 2. Adopted: Apri124, 2001 ATTEST: Its Secretary PORT AL'THORITY OF TT� CTTY OF SAIN'I' PAUL By Its Chair ,- zossi io�i 3 � l -�to`� EXHIBIT A RESOLUTION # _ The reasons and facts supparting the findings for the crearion of the IIniversity Avenue / T.H. 280 Hazardous Substance Subdistrict as required pursuant to Minnesota Statutes, Secrion 469.175, Subdivision 7 are as follows: 1. Finding that the Subdistrict is a`Hazardous Substance Subdistrict. " The Snbdistrict is a IIazardons Substance Snbdistrict because the tiniversity AvenuetT.H. 280 site has been nsed for over 100 years by heavy indnstry including railroads, paint manufacturing, waste haulers, food processing and tank and drum recycters. As submitted in a Response Action Plan to the MPCA, the soil is heavily pollnted with contaminants such as polychlorinated biphenyls (PCB), polynuclear aromatic hydrocarbons and heavy metals. A portion of the sife falls within a Superfund site identified as the ADM/Hwy. 280 site. 2. Finding that the proposed development, in the opinion of the Port Aulhority, would not reasonably be expected to occur solely through privafe investment and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary: The high cost of remediating the parcels included in the Hazardous Substance Subdistricf makes the cost of land acquisition and fmancing of the proposed improvements prohibitive to private developers without the assistance provided through the Hazardous Substan¢e Snbdistrict. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of the District. 3. Finding that other parcels that are not designated hazardous substance sites are ecpected to be developed togefher with ihis designated hazardous substance site: The Subdistrict is within the Westgate Office Industrial Park. The proposed development wonld complete the final phase of the park. 4. Finding that the subdistrict is not larger than, and the period of time during which increments are eZected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site. The duration of the Subdistriet will run the lesser of 25 years or the period of time necessary to reeover tHe cost of the removal and/or remediation actions specified in the Response Action Plan. It is anticipated that the cost of the removal and/or remediation actions specified in the Response Action Plan will be $2,400,000, and that only a porEion of this amount, $150,000, will be recovered through the Hazardous Substance Subdistrict in approximately 25 years, based on current tax law. zosstio�i q b1-4o4, The modification to the University Avenue/T.H. 280 Tag Increment Rinaneing Pian to include a Hazardous Substance Subdistrict has been reviewed by the Port Authority and the Port Anthority hereby determines that the parcels included in the Hazardous Substance Subdistrict (which are the parcels included in the Response Action Plan) are not larger fhan neeessary, since onIy a smali poriion of the remediation costs will be recovered fhrongh fhe creation of the Hazardons Substance Snbdistrict 2oss� ta�� Council File # Green Sheet # Presented by Kathy Refeaed To , . n u. - RBSOLIITION ADOPTING THS MODIFICATIONS TO TEiE IINIVERSITY A / T.H. 280 TAX INCRSMBNT FINANCING PLAN TO CR&ATB A HAZARDOIIS SIIBSTANCS S ISTRICT IN THE IINIVERSITY AVENIIB j T.H. 280 TAX INCREMSNT FINANCING DSSTRICT BE IT RESOLVED by the City Council (the "Council") of the City Minnesota (the "City"), as follows: WHEREAS, On September 22, 1987, the Port AuChority of the Ci "POrt Authority") adopted its Resolution No. 2858, creating the Un 280 Tax Increment Financing District (the "District"), and, in co creation of the District, the Port Authority Board approved the plan relating thereto, all pursuant to and in accordance with M' n 469.�48 through 460.068, inclusive; and Minnesota Statues, Sec on 469.179, inclusive; and Saint Paul, �of Saint Pau1 (the ersity Avenue / T.H. ction with the increment financing ota Statutes, Sections 469.174 through WHEREAS, the Port Authority has been advised that cert in parcels within the District require environmental remediation before such parc ls can be developed, and, in an effort to further develop the District, the Port Autho ty has proposed the establishment of a Hazardous Substance Subdistrict wit 'n the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; d WHEREAS, Port Authority management has pre ously prepared and submitted a Response Action Plan ("RAP") to the Minnesota Pollution ontrol Agency (the "MPCA"), as required by Minnesota Statutes, Section 469.174, Subdivis'on 17, and received the necessary approvals from the MPCA for the RAP in September, 200 , and WHEREAS, on February 27, 2�01, the oard of Commissioners of the Port Authority of the City of Saint Paul adopted its Res ution No. 3873 requesting that Port Authority management call for a public hearing o consider the modification of the University Avenue / T.H. 280 Tas Increment Financing istrict (the "District") to create a Hazardous Substance Subdistrict (the "Subdis rict"), authorizing Port Authority management Co finalize the tax increment finan ng plan related thereto (the "Modified Plan"), and directing Port Authority manage nt to submit the necessary notifications to the Ramsey County Auditor and the Clerk o the Saint Pau1 School Board; and *i�IAEREAS, Port Authorit management has transmitted the necessary notices and, following a public hearing n the Modified Plan held on April 24, 2001, adopted its Resolution No- appr inq the Modified Plan; and WHEREAS, Port Aut rity management has prepared a budget for the cost of removal and remediation action spec fied in the RAP, and the sources of funds to be used to accomplish the same, all of whic is set forth in the Modified Plan; and WHEREAS, in it Resolution No. the Port Authority has determined that: (a) development or rede elopment described in the Plan is not reasonably expected to occur solely through pri te investment and ta�c increment otherwise available, and therefore the hazardous substan subdistrict is deemed necessary; (b) other parcels that are not designated hazar ous substance sites are expected to be developed together with a designated haz dous substance site; and (c) the subdistrict is not larger than, and the period of tim .during which increments are elected to he received is not longer than, Chat which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site, and �� tS ��a.+1 0� CITY OF SAINT PAUL, MINNESOl"A 14fi38.1 _ ��-�lo� WHEREAS, the City finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and supporting £acts £or each determination in writing, attached hereto and to the Port Authority's Resolution No. as Exhibit A. WHERF..AS, it has been represented to the City that the Port Authority has performed all actions required by law to be perEormed prior to the establishment of the District, including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jusisdiction over the property included in the District), and the holding of a public hearing; and WHEREAS, the Port Authority has asked that the City Council of the City of Saint Paul approve the modification to the Ta�c Increment Financing Plan for the University Avenue/ T.H. 280 Tax Increment Financing District to create therein a Hazardous Substance Subdistrict pursuant to Minnesota Statutes, Section 469.175, Subdivision 7_ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 1. The Modified Plan and the creation of the IIniversity Avenue/ T.H 280 Hazardous Substance Subdistrict, as approved by the Port Authority Board of Commissioners, is hereby approved and adopted. 2. The City Council hereby recognizes and ratifies Port Authority actions relating to the establishment of the Hazardous Substance Subdistrict, specifically, the Port Authority compliance with all notice requirements and public hearing, which was held on April 24, 2001, at which time individuals present were given an opportunity to comment on the proposed Modified Plan. 3. The City Council has investigated the facts and hereby accepts and ratifies the Port Authority findings pursuant to Minnesota Statutes, Section 469.175, Subdivision 7, and set forth hereto as Exhibit A. Approved by the Board: April 24, 2001 14638.1. Council File # O 1��d y Green Sheet # V 013 38' RESOLUTION OF SAINT PAUL, MINNESOTA �� Presented by Refened To Committee Date R&SOLIITION ADOPTING THE MODIFICATION5 TO THS IINIVSRSITY AVSNIIS / T.H. 280 TAX INCREMSNT FINANCING PLAN TO CRSATS A HAZARDOIIS SIIBSTANCS SIIBDISTRICT IN THE IINIV8RSITY AV8ND8 / T.H. 280 TAX INCRBtdBNT FINANCING DISTRIC'I` BE IT RESOLVED by the City Council (the "Council") of the City of Saint Paul, Minnesota (the "City"), as follows: WHEREAS, On September 22, 1987, the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 2858, creating the University Avenue / T.H. 280 Tax Increment Financing District (the "District"), and, in connection with the creation of the District, the Port Authority Board approved the tax increment financing plan relating thereCO, all pursuant to and in accordance with Minnesota Statutes, Sections 469.048 through 460.068, inclusive; and Minnesota Statues, Sections 469.174 through 469.179, inclusive; and WHEREAS, the Port Authority has been advised that certain parcels within the District require environmental remediation before such parcels can be developed, and, in an effort to further develop the District, the Port Authority has proposed the establishment o£ a I3azardous Substance Subdistrict within the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; and WHEREAS, Port Authority management has previously prepared and submitted a Response Action Plan ("RAP") to the Minnesota Pollution Control Agency (the "MPCA"), as required by Minnesota Statutes, Section 469.174, Subdivision 17, and received the necessary approvals from the MPCA for the RAP in September, 2000; and WHEREAS, on February 27, 2001, the Board of Commissioners of the Port Authority of the City of Saint Pau1 adopted its Resolution No. 3873 requesting that Port Authority management call for a public hearing to consider the modification of the University Avenue / T.Ei. 280 Tax Increment Financing District (the "District") to create a Hazardous Substance Subdistrict (tlie "Subdistrict"), authorizing Port Authori[.y management to finalize the tax increment financing plan related thereto (the "Modified Plan"), and directing Port Authority management Co submit the necessary notifications to the Ramsey County Auditor and the Clerk of the Saint Paul School Board; and WI3EREAS, Port AuthoriCy management has transmitted the necessary notices and, following a public hearing on the Modified Plan held on April 24, 2001, adopted its Resolution No. __ approving the Modified Plan; and WHEREAS, Port Authority management has prepared a budget for the cost o'f removal and remediation action specified in Che RAP, and the sources of funds to be used to accomplish the same, all of which is set forth in the Modified Plan; and WHEREAS, in its Resolution No. the Port Authority has determined that: (a) development or redevelopment described in the Plan is not reasonably expected to occur solely through private investment and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary; (b) other parcels that are not designated hazardous substance sites are expected to be developed together with a designated hazardous substance site; and (c) the subdistrict is not larger than, and the period of time during which increments are elected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site, and 14720. I. o i - yd`i WHEREAS, the City 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 and to the Port Authority's Resolution No. as E�chibit A. WHEREAS, it has been represented to the City that the Port Authority has performed a11 actions required by 1aw to be performed prior to the establishment of the District, including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jurisdiction over the property included in the District), and the holding of a public hearing; and WHEREAS, the Port Authority has asked that the City Council of the City of Saint Paul approve the modification to the Taac Increment Financing Plan for the University AvenueJ T.H. 280 Tax Increment Financing District to create therein a Hazardous Substance Subdistrict pursuant to Minnesota Statutes, Section 469.175, Subdivision 7. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows_ 1. The Modified Plan and the creation of the University Avenue/ T.H 280 Hazardous Substance Subdistrict, as approved by the Port AuChority Board of Commissioners, is hereby approved and adopted. 2. The City Council hereby recognizes and ratifies Port Authority actions relating to the establishment of the Hazardous Substance Subdistrict, specifically, the Port Authority compliance with all notice requirements and public hearing, which was held on April 24, 2001, at which time individuals present were given an opportunity to comment on the proposed Modified Plan. 3. The City Council has invesCigated the facts and hereby accepts and ratifies the Port Authority findings pursuant to Minnesota Statutes, Section 469.175, Subdivision 7, and set forth hereto as Exhibit A. Adopted: April 25, 2001 14720.1. C 1 _ 4,4�1 �XHrBIT A RESOLUTION � The reasons and facts supporting the findings for the creation of the University Avenue / T.H. 28Q Ha2ardous Substance Subdistrict as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 7 are as follows: Finding that the Subdistrict is a"Hazardous Substance Subdistrict. " The Subdistrict is a Hazardous Substance Subdistrict because the University Avenue/T.H. 280 site has been used for over 100 years by heavy indnstry including railroads, paint mannfacturing, waste haulers, food processing and tank and drum recyclers. As submitted in a Response Action Plan to the MPCA, the soil is heavily polluted with contaminants such as polychlorinated biphenyls (PCB), polynuclear aromatic hydrocarbons and heavy metals. A portion of the site falls within a Superfund site identified as the ADM/Hwy. 280 site. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be expected to occur solely through private investrnent and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary • The high cost of remediafing the parcels Sncluded in the Hazardous Substance Subdistrict makes the cost of land acquisition and Tinancing of the proposed improvements prohibitive to private developers without the assistance provided through the Hazardous Substance Subdistrict. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of the District. Finding that other parcels that are not designated hazardous substance sites are expected to be developed together with this designated hazardous substance site.• The Subdistrict is within the Westgate Office Industrial Park. The groposed development would complete the final phase of the park. 4. Finding that the subdistrict is not Zarger than, and the period of time during which increments are elected to be received is not Zonger than, that whicls is necessary in the opinion of the authorily to provide for the additional costs due to the designated hazardoau substance site. The duration of the Subdistrict will run the lesser of 25 years or the period of time necessary to recover fhe cost of the removal and/or remed"zation actions specified in the Response Action Plan. It is anticipafed that the cost of the removal and/or remediation acfions specified in the Response Action Plan will be $2,400,000, and that only a porfion of this amount, $150,000, will be recovered through the Hazardous Substance Subdistrict in approximately 25 years, based on current tax law. zoss � io�� q o�- �tay, ��x�� • . -, :-..,. �__ ��_� :. , . „ �__ . -.,.. __� ��__ .,. �__ - �_� _��'� Adopted by Councal: Date A,� a S` �pp � � � Adoprion Certified by Council Secretary By: �� F'� - Approved by Mayor: Date � � �� By � �� e uested by Department of:_ �� / By: Form Appzqve3�hy City Attomey �-� " B (`-''J ��`_ ' T ` /�_z� t� � � __ Approved by Mayor for Submissi n to Council BY � -E��'�-�� ) 14638.1 o�-�dy Paul Port Authority �� GREEN SHEET No l �i 33$ Johnson/Laurie Hansen On April 25, 2001 TOTAL # OF SIGNQTURE PAGES o[ruune+rowExrart arv�ou+n � j � — X l,� - rn.., � �� Cl/ rn.e�nx _ o .�,�� ❑,�,� o Y ��,�,� ❑ �cuP au t.ocanoras FoR sicninrurtE► Approval of the modification of the University Avenue/T.H. 280 Tax Increment Financing Plan to include a Hazardous Substance Sub-District and make the necessary statutory findings and elections in connection with the plan and the District. PLANNING COMMISSION CIB CAMMIITEE CIVIL SERVICE CAMMISSION Board r�a� n� v�� a �� a w�aea r« uae a�n�rte VES NO Has ihis persoNfirtn eva been a dh emPbYes� YES NO Doec ihis peisoMim V� a sidll rat riorma�lYC� Uy anY curtent ciLY empbyeel YES NO' Is Mis persoNfxm a farpeted vendaY7 YES NO Approval of this i�odified Tzx Increment Financing Plan to create a N_azardous Substznce 5ub-District will assist the redevelopment and remediation of the final phase of the Westgate O£fice Industrial Park. The proposed development will consist of a 98,000 square Poot light industrial of�ice/showroom building which will maximize job potential with approximately 225 jobs being provided on site. RFf;F_fVED APR 17 �991 11S4DVANTAGES IF APPROVED MAYOR'S O�FICE )ISADVANTAGES IFNOTAPPROVED Private Sector development is not likelv to occur due to the pollution and the high cost of remediation. AMOUNT OF TRANSACTION cosrrt�vaua euoe� (arec� oN� YEY NO SOURCE Tax Increment Financinq/ ,�crmryNw+�e6e Grant Receipts MFORM4TON (IXPWt� o1-4oy SAINT' PAt7L PoRT AU�xoxi't� TO: !�I' , .•� • ► Board of Commissioness (Meeting of Tuesday, April 24, 2001) DA'PE: Apsi! 18, 2001 Jiil T. Tong�� Laurie J. N en Kenneth R. Johnson SUBJECI': UNlVERSITY AVENUE(C.ti. 280 (WES7GATE) MODIFICATION OF TIF PLAN PUBLiC HEARIIdG RESOLUTION NO. ACTION REQUESTED Final approval of the modifica6on of the University Avenue/T.H. 280 Tax Increme�t Financing Plan to include a Hazardous Substance Sub-District. PUBLIC PURPOSE Approval of the Hazardous Substance Sub-District will provide partial funding for: • Development of a 98,165 square foot light industrial office/showroom. • Creation of approximately 225 jobs. • Remediation of 4 parcels in Westgate Industriai Park. BACKGROUND On September 22, 1987, the Board of Commissioners approved the creation of University Avenue/T.H. 280 Tax lncrement Financing District. The main focus of the district is to improve the tax base and expand employment opportunities. CSM Corporation is in the process of acquiring a portion of the Northem Star Company site, which is located in the University�f.H. 280 (Westgate) Tax Increment Financing District. CSM Corporation plans to develop this site as the final phase (CSM V) of the Westgate Office Industrial Park. The proposed development consists of a 98,165 square foot light industriai officelshowroom buiiding. CSM esfimates fhat 225 jobs will be created by the proposed devefopment. CSM is requesting the creation of a the site necessitates the cseafion payment of the costs for remediation. Hazardous Substance Sub-District. Pollution found at of the Hazardous Substance Sub-District to assist in iasaz�. 6 �-yoy The Port Authority and CSM have developed a financing plan for this project, which contains several different funding sources, inctuding tax increment finar�cing. The osiginai tax increment-financing pfan wilf be mod�ed to reflect the creation of the HSS. This mod�cation is documented in appendices A, B and C to the original plan. A copy of the originai plan and the appendices are attached for your review. A summary of this projecYs sources and uses is included as Appendix C of the financing plan. We recommend final approval of the modification of the Universiiy AvenuelT.H. 280 (Westgate) Tax Increment Financing Pian. 14647.1. o�-yoy TAX IN�REMENT FINAI3CING DISTRICT SEPTEMBER 22, 1987 MINNESOTA STATUTES, SECTIONS 273.71-273.78 FOR LJNIVBRSITY AVENUElT.H. 284 (WESTGATE OFFICE Ii�DUSTRIAL PARK) AMENDED FEBRUARY 27, 2001 TO 1NCLUDE HAZARDOi7S SUBSTANCE SiJB-DISTRICT t3973.1. 0�-�o`I Table of Contents A. Introduction — Identification of Need ........................................................................ ............. 3 B. Statutory Authority and Description of Dishict ...................................................................... 4 C. Statement of Purpose and Objectives ........................................................................ ............. 4 D. Development Program ..............•---.............................................................._.............. _............ 7 E. Description of TaY Increment Dislxict Properiy ..................................................................... 9 F. Development Activities Under Contract ............................................................................... 10 G. Expected Development Activities ....................................................................:.................... 11 H. Classificiarions of Tax Tncrement Financing District ........................................................... 11 I. Property in Acquisition ......................................................................................................... I 1 J . Estimates of Costs ................................................................................................................. 12 K. Idenrification of the Use of Tas Increments ......................................................................... 12 L. Limitation on Administrative Expenses ................................................................................ I3 M. Souces of Revenue to Finance Public Cost .......................................................................... 13 N. DurationoftheDistrict .........................................................................................................14 O. Impact on Other TaYing Jurisdictions ................................................................................... 14 P . Modifications ........................................................................................................................15 Q. Limitation on Duration of Tax IncremenC Financing Districts ............................................. lfi R. L'unitation on Qualification of Property in T� Increment District Not Sub}ect to Improvement ......................................................................................................................... 16 S. Annual Disclosure Requirzments ......................................................................................... 17 T. Requirement for Agreements with Developer ...................................................................... 17 U. Assessment Agreement .........................................................................................................18 V. Notification of Prior Planned Tmprovements ........................................................................ i 8 W. Administration of the TaY Increment Economic Development District ...............................18 X. Tax Increment Financing Accounts ......................................................................................18 Y. Estimate of Amount of Bonds Indebtedness ......................................................................... i 8 Appendix A- Amendment to Create Hazardous Substance Sub-District Appendix B- Hazardous Substance Sub-District Parcel List and Site Map Appendix C- Sources and Uses for the Hazazdous Subsfance Sub-District '13973.'I. a1-4a� Tax Increment Financi4g Plan A. Inimduction — Identification of Need The Boazd ofthe Housing and Redevelopment Authority of Saint Paul and the Council ofthe City of Saint Paul (the "City'� and the Port Authority of the Ciry of Saint Paul kave determinecl that a need exists ta establish a taz� increment financuzg district within t3ie boundaries of the University Avenue/T.H. 280 Redevelopment Area, in which are located various aging disfribution warehouses and railroad spur tracks. The District is bounded generally by Trunk Highway 280 (T.A. 280) on the east, the Burlinn on Northem Raikoad maiYiline tracks on the north, The Saint Paul-Minneapolis municigal boundary and Berry Street on the west, and by Ilniversity Avenue, with the addition of a hiangular piece at EILis Avenue and Curfew Street, on the south. Specific boundaries aze outlined in Appendix 1, attached hereto and made a part thereof. The tax parcels included in tUe Tax Increment Rinancing District are desczibed by property identification number and address in Section E of this plan. The area included in the District consists of approximately 62 acres occupied primarily by aging distribution warehouses and raikoad spur tracks. There are eight single-family houses along the eastern edge of the area separated from the South Saint Anthony neighborhood by T.H. 280. It is obvious that the area, wYuch has superb traffic access, is not being used to its full potential. Most of the buildings are in very poor condition, there are several vacant structures, approximately one-third of the site is underdeveloped, and the number of jobs and the assessed values of the properties are relatively low. The resulting image conveys a sense. of blight and probably discourages private reinvestment. The 1)ishict's exceltent access_is a result of the proximity to fke interchange �of T.H. 280 and I-44 and its service by University Avenue anfl Territorial Road. Public financial assistauce is necessary to accomplish the ob}ectives of the University Avenue-T.A. 280 Redevelopment Plan. It is highiy unlikely that the private market would even be v,*illing to take the risks inherent in buying and redeveloping the great amount of property involved. Private redevelopment would more 1'akely be piecemeal, uncoordinated, and unabie to assemble enough land, resulting in a less than safisfactory result in this pivotal location. There has been very little or not private interest shown in redevelopment of the District in many yeazs; property conditions have become steadily worse over time. Additionally, many of the present street surf'aces need to be reconstructed in order to alleviate structural deficiencies, pravide curb and gutter, and to repair the daznage that would be created by the replacement of the sanitary sewer and water lines. These utiliries, which exist throughout much of the District, need to be upgraded in order to meet contemporary industrial needs. In short, a successful industrial rebirth for the area requires a comprehensive solntion rather than perpetuating undesirable conditions that were created many years ago. 93913.1 B. Statutory Authority and Description of Llistrict The Saint Paul Housing and Redevelopment Authority is authorized to create a tax increment financing district pursuant to Minnesota Statutes, Sectiotts 273.71-283.78. 'Fhe tax increment district will be a redevelopment dishict, as defined in Section 273.73 subdivision 10, of the Minnesota T� Increment Pinancing Act, and wiu be estabtished in conjunctian with the Redevetopment Plan for the University Avenue/T.H. 280 District. Furthermore, the Port Authority of the City of Saint Paul and the Housing and Redevelopment Authority of the City of Saint Paul area establishing a Redevelopment Project which qualifies as a Redevelopment Proj ect and as blighted and deteriorated areas under the Housing and Redeveiopment Act, Section 462.421(13) and as an Industrial Development District under Minnesota Statutes 458.191. The purpose of these plans and project is to deveIop or redevelop sites, lands, or areas within the pro}ect area in conformance with the requirements of the above statutes and with the City of Saint Paul's Comprehensive Plan pariicnlazly the Land Usa, Eoonomic Development Strategy, and D'sstrict 12 District P1an sections and to implement recommendations of studies completed in order to 'vnplement the Ciiy's Comprehensive P2an. Specific boundaries of fhe District aze outlined in Appendix 1, attacked hareto and made a part t�ereof. C. Statement of Purpose and Objectives The HRP.l3'ort Authority will use tax increments and proceeds of tas increment notes/bonds payable therefrom to pay public costs of redevalopinent associated withfihe University Avenue/T.F3. 280 Redevelopment Project, as identified in the University Avenue/T.H. 280 Redevelopment Plau, which plan fiu set forth tfie objectives of the 3�tA/Port Authority for improvement of ffie Project and the Project Area. The HRA/Port Autharity has determined that a need exists to nndertake a redevelopment effort in the Project Area, which effort shall include acquiring and assembIing land, dzmolishing certain economicalty obsolate st�uctures, improving soiI quality, and extending and improving streets and utilities to provide attractive development sites for locatly-based firms aud to encourage companies from outside the City to relocate in Saint Paul. These efforts will improve the tas base and expand e�iployri�enY opportu�ties. ° �� The purpose of the L3niversity Avenue✓T.Ii. 280 Tas Increment Pinancing Plan is to i�npleznent the Redevelopment Plan and the following goals and obj ectives of the Comprehensive Pian of ttie City of Saint Paul, including the Land Use Plan, Economic Development Sirategy, and tha Dishict 12 Plan 1983 sections; and additional objectives in order to impiement these Plan policies: Land Use Plan "The City will contiaue to work with private devetopers and the Saint Paut Port Authoriry to facilitate the maintenance and creation of energy-efficient industrial pazks." "T'he City will develop and maintain an inventory of vacant sites and facilities suitable for industrial use to meet a variety of industrial needs" 13973.1. o � -�io�l "To ma�mi�.e employment opportunities and land uti3izarion in Saint Paul, labor-intensive industries— with high jobs per acre rations—should be encauraged to locate or stay in the City." "The City will investigate zoning provisions and fiscal and non-fiscal incentives which can be used to encourage labor-intensive indushy to locate in the City." The Land Use Plan designates the University AvenuelT.II. 284 Redevelopment Area ior redevelopment for labor-intensive development. Economic Development Strategy: "Saint Paul shall continue to provide assistance towazds industrial and commercial development, within a set of guidelines designed to ensure the most efficient use of. the City's available land and development resources." "Saint Paul sha11 increase the suppiy of land available for commerciaUindustrial expansion and development, focusing attention on specific parcel sizes and types required. The City, through the Port Authority, shall continue its policy of acquiring land for industrial purposes, where that land is not better suited for other piuposes. Examples inciude vacant or under-utilized railroad lands, or other parcels that are sufficiently removed from residenrial or commercial lands so as to not adversely afFect them." "Saint Paul shall pursue institutional policies and changes designed to improve its role as a facilitator or commercial and in�ustrial expansion and development ".. District 12 Plan 1983: "The District 12 Community Council should encourage private image improvement on a property-by- properiy basis along University Avenue. Problems which need to be treated include poor building conditions and treaiments, inappropriate signage, lack of screening, and lack of irees and shrubs." "The City should work with the community council to improve areas of the University Avenue corridor maintained by the City. Deficiencies include inconsistent sidewalk and boulevard surface treatment, frequent and dupIicarive pazking and directional signs, lack of trash containers and attractive street lighting, and inadequate landscaping." "Encourage private development of vacant lands in Energy Park, the former Sussel Company property and the Adnural Merchant Trucking property. Commercial and industrial uses with minimal negative iznpacts on nearby residenrial areas should be given highest priority consideration." T'he District 12 Plan designates the University Avenue/T.H. 280 Redevelopment Area for redevelopment into higher intensity industriai uses. In 1985 the District 12 Community Council completed a"Development Strategy for the West of T.H. 280", the Redevelopment Area. That strategy took the City's Comprehensive Plan recommendations and appIied them to the Project Area. That strategy recommended that a Redevelopment Project be 13973.1 undertaken by the Port Authority and the fiR P, in this azea. The Strategy recommended that the area be redeveloped for the creation of Iight industrial, office/research, and service related indus�ries witil an emphasis on labor-intensive activiiies. The District 12 Stra#egy also pursued the Distriet 12 Plan recommendations regazding University Avenue, emphasizing the need to impmve the physical image of the avenue and of T.Ei. 280 as gateways into Saint Paul and tlus major employment center. University Avenue - T.H. 280 Redevelopment Study Based on the District 12 Plan and the District 12 Strategy, The City of Saiat Paul completed a Redevelopment Study of the Project Area, fiuther refining Comprehensive Plan goals and objects as well. The Study defined the following goals for the Project Area: Fncrease the number of jobs in the Study Area. Desi� and mazket the Study Area primarily as a looation for small industrial-office businesses which have a high ratio of employees per acre. Increase the assessed valx�e of real estate in the Study Area. Attract high-quality land investments by creating a camprekensively planned industrial-business park which provides a develogment environment comparable to tize better-quality contemporary parks. Improve the image af the Study Area. Respond to the needs and desires of the community in the Redeve2opment of the- Study Area. The "Redevelopment Siudy" further elaboiates strategies which the Port Authoriry and/or the HRA will consider in the specific implementation activities to be conducted in the Pzoject Area and District. And the following objectives, important to the implementation of Comprehensive Plan recommendations and directions: To remova or rehabili#ate substandard and blighting buildings. To assemb"te adequate'ry size2� p�ee�s far �°.k;.xzelc�nent. _,, .. ._.. „ �o coordinate acquisition, site preparation and impzovements, pmvision of necessary public improvements and facilities, and to spread and equalize the cost thereof, in order to accomplish the entire project development at a cost reasanably related to the public purposes to be served. To provide private developers with information regarding zoning; land use eontrols and other City and Plan requirements; information and assistance in obtauung conshuction and permanent financing; information and assistance regarding construction of site and public unprovements and measures necessary to correct site conditions, ail in accoidarice with development agreements. To Snance the development costs of the Project by means of tax increment generated by the Project nnprovements and development 13973.1. a�.yoy To nnance development by a combinafion of private and public fnancing under authority and subject to the requirements of federal, state and local law, and ordinauce for the provision of revenue bond financing. D. Development Program The development program for tlus Project is further set forth in Section G ofthis Plan. Generally, the role of the public sector in coxnmerciai and industrial development has been to assemble and deliver development sites, and provide conirols and incentives in order to encourage and obtain needed develogment. Among the various mechanisms available to the City and its redevelopment agencies are: 1. Acquisition to acquire as authorized under the Housing and Redevelopment Act, Minnesota Statutes, an the Tax Increment Financing Act. (a) blighted azeas, buildings and other real property, where removing such can remove, prevent or reduce blight or the causes of blight; (b) open or undeveloped land blighted by virtue of conditions which have prevented normal development by private enterprise; (c) underused or inappropriately used land which may be converted to other uses recommended by the Plan; (d) lands or properiy necessary to complete assembly of pazcels suitable for redevelopment; (e} other real or personal property as necessary to accomplish the objectives of the Plan; and ( fl lands or property deemed to be unsafe or hazardous to the pubIac's health and safety. 2. Site Prepazation and Public Improvements (a) demolition, removal or rehabilitation of buildings and improvements; (b) activities to conect adverse physical characteristics of the faulty land division or i�adequate access or utility service or other development-inl�ibiting conditions; (c) activities deemed necessary or desirable to remove, reduce or prevent other blighting factors aad causes ofblight; (d) activities deemed necessary or desirable to unprove and prepare sites, including the conection of soil conditions, for commercial and industrial development or redevelopment purposes in accordance with the Plan; and 13973.1 (e) installation, construction or reconshliction of streets, utilities, and other public improvements or facilities as necessary or desirable for cazrying out Plan objectives. ( fl any studies or research that may be necessaty to detern�ine the traffic or Iand usa impacts of any development proposal andJor particular sireet and traffic pattern. (g) provisions of relocatiou services, assistance aud benefits in accordance with Minnesota Statutes Chapter 117. 3. Commercial and Industrial Financing It is tfie City and ifs redevelapment agencies intention to make availabie as appropriate and feasi�ble, and upon the sole determinarion of said agencies, affordable sources of financing to developers, corporatians, sma11 businesses and other organizations involved in the commercial, office, and industrial sectors. There are a number of financing mechanisms that caa be used as appropriate to accomplish the City and its redevelopment agencies goals and objecrives: (a) Industsial Development Revenue Bond Loans — This provides below market rate loans to finance manufacturing projects; {b) Urban Development Action Crrant Loans — T3us federaliy funded prograzn provides low interest, long-term Ioans to industrial, housiag, aad commercial projects with special efnpliasis on distressed areas; (c) Tax Increment Fivanciag — This locally administered tool provides a means by wkick to redevelop blighted areas, assist industry and create affordable housing; (d) Special Assessment Financing —'I'his locally raised and administered source o£financing provides benefiting property owners an affordable interest nte and Iong term financing mechanism by wluch to repay pubIic improvements; (e) SBA Sd3 Loan Guazantee Program — Tlus federally sponsored program provides Iaan b warantees to banks providing Ioans to qualified sma11 businesses; (i� Such other local, regional, state, federal, an private financing programs or mechanisms as may be a�ailable during the duration of the District. 4. Land and Other Financing Assistance The City and its redeve3opment agencies may enter into Iong-teim lease arrangements rather than land sale contracts where appropriate. One type of Iease arrangement would allow a developer to spread land costs over a longer period thus reducirtg cash eqaity requirements. 'i'he City and its redevelopment agencies may, where appropriate and at tkeir sole discretioa, also exacute agreements ta make geriodic assistance payments to developers to reduce the difference between 73973.1. o�.y�y 5 � E. fair market rents obtainable, aud deet service and expenses necessary to operate a project at a feasible level. In selecfing methods ofproject finance, the Port Authority and/or the HRA wiIl take into account the forms of oth� assistance availabie and negotiate with individual developers so that a method can be chosen which provides svfficient incentive for the developer to create quality product. Developer of Each Pazcel in District Developer wilI occur in accordance with Section G of the Plan on each parcel of the District either pursuant to private financing, or thtough redevelopment agencies in which latter case all developers skall execute min;mum ta�c assessment agreements with the Ramsey County Assessor. Promotion of Development of the Redevelopment Area To implement this Flas�, the Port Authority andlor the HRA will provide for, or cause to provide for, the following, as is necessary and appropriate. fiDMII3ISTRATION of those public processes and requirements deemed necessary to support ox allow developmenUredevelopment of properry to oocur in accordance with this Plan. If applicable and advisable, the Port Authority and/or the HRA will provide or cause to provide: (a) Coordinarion of project activity, financing and review with human service agencies, cifizen participation entities, and other state, regional and federal government agencies; (b) Initiation of vacations, rezonings, dedication of public rights-of-ways, or other pubIic actions as may become necessary to implement this Plan, in accordance with state and local statutes. This will be undertaken by the Port Authority, HIZA or the redeveloper. (c) Enforcement of building codes, design controls, site covenants, provisions to ensure compliance with state and local requirements relating to non-discrimination, income levels, environmental quality, faithful performance, and any other pubiic objectives relating to the purchase, development, improvement or use of the land; (d) Properiy exchanges. Description of Tax Iucrcment District Property '£he IJni�ersity Avenue/T.H. 280 Tax Tncrement Financing District tax parcels ideutified by Properiy Identification I3umbers and Property Addresses are the following: l. 292923330016 2580 University Avenue 2. 292923320037 2600 University Avenue 13973.'I � F 13973."I 3. 4. 5, 6. 7. 8. 9. 10. 11. 12. i3. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23, 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 29292332d030 292923320038 292923320029 292923320028 292923320027 29292332Q026 242923320019 292923320Q20 292923320023 292923320024 292923320025 292923320021 292923320002 292923320003 292923320004 292923320005 292923320006 292923320007 292923320Q08 292923320009 292923320010 292923320021 2929233200I2 292923320013 292923320014 292923320015 292923320016 292923230012 292923230013 292923230014 292923230001 2'9292'323��2' 292923230005 292923230015 292923230007 292923230008 29292323dQi6 Development Activities Under Confract 2545 University Avenue 25&3 University Avenue 2631 University Avenue 2633 University Avenue University 2635 University 2640 Territoriai Chazies Temtorial Charles Curfew 2618 Territoriai Tezritoriai Territoriat 958 Berry 2625 Territoriat EusYis Eustis 935 Eustis 935 Eustis 929 Eustis 927 Eustis 923 Eustis 9I7 Eusris 913 Eustis 907 Eustis 903 Eustis 899 Eustis 1000 Berry 965 Eustis 1005 Eustis Eustis i3massi�e� � � � - .. . Unassigned Unassigned Uaassigted Uuassigned Unassigned At the time this Plan was prepared, no redevelopment contracts kaiT been entered into aanong the City the HRA, tlte Port Authority, or other redevelopment agencies, or a third party. See Section G for development activity contemplated during the duration of the Universiry Avenue/T.H. 280 T� Inerement Financing bistrict o�-yo�l G. Expected Development Activities A more predictable schedule o£ development activities can be estimated upon the resolution of two major issues relating to the Project District. As each of these issues is resolved, private development and other public development activities are expected to be commenced at a scheduIe, level, and sequence consistent with normal indushy standards associated with a proj e�t of this magnitude. The two prominent issues involved in the success of the overall design of this new industriat-office park, and of the design of the individual sites, aze: 1. the tuneliness of acquisition and subsequent removal of all blighted structures, and; 2. the creation of a new develapment within unified desi� guidelines. Consequentiy, since the plan for land acquisition is important in achieving the desired change ofimage, and in indicating a public commitment to the project, and in eIiminating the negative effect which a prolonged acquisition schedule would have on property owners: the entire tract of land is proposed for immediate purchase, and; 2. building design and landscaping guideIines should be adopted as presented in the University Avenue(T.Ei. 280 Redevelopment Plan, Sectian N, "Land Use", subsections A-E and Section V, subsecrion E, "Urhan Design GuideLines," and subsection F, "Other processes for Imple�nenting Land Use Designafions." Those specific portions of the Redevelopment Plan are included in Appendiac 2, attached hereto and made a part thereof. H. Classifications of Ta�c Increment Financing District The City Council of the city of Saint Paul, Minnesota, in deteiminiug the need £or a Tax Increment Financing Districts in accordance with Minnesota Statute, Section 273.71-273.78 inclusive, finds that the district to be established as a redeveIopment distsict pursuant to Minnesota Statutes, Secrion 273.'73, Subdivision 10. Furthermore, the Port Autharity of fhe City of Saint Paui and the Housing and Redevelopment Authority of the City of Saint Paul are establishing a redevelopment project which quaIifies as redevelopment project in blight and deteriorated areas under the Housing and Redevelopment Act, Section 462.421 (13) in as an indushial development district under Muuiesota Statutes 454458.191. I. Property in Acquisifion The land use plan proposes to remove most of the e�sting businesses and all of the housing the study area The HRA may require by eininent domain certain privately owned parcels of land in the land use area necessary to carry out the project for disposition for redevelopment in accordance with the project 13973.1. redevelopment plan at a consideration covering acquisition cost including relocation of displaced occupants. � Estimates of Costs Financing needs of the 280 Taa� Increment Financing District Property Acquisition Building DemoIition Residents and Business Relocation Sireet and Utiiity Tmprovements Street Landscaping and Lighting General Grading DiscounY./Cost ofIssuaace Debt Service Reserve Capitalized Interest Projected Debt 3ervice Shortfatl Administration Legal Miscellaneons Contingency Total �io,zz�,00a 1,26b,500 1,319,000 1,237,000 166,45Q 150,000 735,000 2,100,000 5,703,7�2 1,450,000 100,000 75,000 100,000 715,298 $zs,zss The total amount of bonded indebtedness for the 280 Redevelopment Project is $25,285,000. Identification of the Use of Tax Increments Pursuaut to Minnesota Statutes Section 273.75, Subdivision 4, all revenues derived from the tas increment dishict shall be used in accordance with this Tas Inerement Financin� Plan. The revenues shall be used for the following purposes: 1. 3. C� 5 To pay principal of and interest on bonds issued in a�ci of L'�e-�''fs�:c:, if.zny; _ To repay any loans including interest on these loans as authorized by the FiRA/Port Authority to pay for any site and public unprovement costs; To fund and repleiush a debt service reserve far tke project of principal and interest an bonds used to finance a project; To pay for project costs and administrative eacpenses as identified in the project budget described in Section 7 above; and ° To pay for project costs in addirion to those identified in the project budget, which are determined by the HRA/Port Anthority to be necessary to the accomplislunent of the redevelopment and tax inerement financing plans. 93973.7. o� -�.e�y L. M. Limitation on Administrative Eapenses Pursuant to Minnesota Statutes Secrion 273.75, Subdivision 3, as amended, aduvnistrarive expenses ue limited to ten percent (10%} of the total taY increment eapenditures. "Adsninistrative expenses" means all expenditures of an authoriry other than amounts paid for the purpose of land or amounts paid to contractors or others providing materials and services, inciuding architectural and engineering services, directiy connected with the physical development of the real property in the district, relocation benefits paid to our services provided for persons residing or businesses located in the district, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 273.77. "Administrative expenses" includes amounts paid for services provided by bond counsel, fiscal oonsultants, and plamung and economic development consultants. Sances of Revenue to Finance Public Cost It is intended that the enrire public project cost, to the extent possible, be paid from the tas increment generated by the redevelopment. This does not include the HRAlPort Authority from using other funds, at its discretion, to pay such cost. Estimated Revenue Sources of revenue to fnance public costs 1. Tax Increment Estimate: 280 Redevelopment Proiect (estimate) Construction and Land Cost Total Estimated Market Value Total Assessed Value at 43% Assessment Ratio Original Assessed Value Captured Assessed Valuation Captured Assessed Increment - $45,855,000 - 36,684,000 - 15,774,120 - 2,S1Q,103 - 13,26�4,017 - 1,684,530 The increment resulting from the above captured value will be used in the following categories in order: To pay principal on interest and bonds to finance project 2. To fund and reglemsh debt service account for bonds issued to finance project To finance or otherwise pay financing and public development costs of the prajact pursuant to Minnesota Statutes, Chapter 462 To pay administrafive expenses and ofher project related costs. 13973.7. 5. To retum to County of Ramsey for distribution to impacted taxing juzisdicrions_ �� C�� Duration of the District Pursuant to Minnesota Statutas Section 273.75, Subdivision 1, the maximum duration of a tax increment redevelopment dishiot is 25 years from the date of receipt of the first increment by the authority. It is estimated that the HRA could cotlect taic increments on the district through the year 2014. Impact on Other Taxing Jurisdictions The overlapping jurisdictions upon whose assessed valuatioa this tax increment fivancing plan could have an impact aze: - Independent School District No. 625, whose boundaries aze coterminous with those of the City of Saint Paul. - County of Ramsey, to whose assessed totai valuation the City of Saint Paul contributes about 54%. - Housing and Redevelopment Authority of the City of Saint Paul, wluch is the requesting authority. The HRA may be considered as being identical witk the City af Saint Pau1 for purposes af this analysis. - Port Authority of the City of Saint Paul, whose powers of levy and uses of property ta�c revenue is limited. For this analysis, they may be treated the same as the City of Saint Paul. - Metropolitan authorities — such as the Metropolitan Council, Metropolitan Auport Commission , Metropolitan Transmit Commission, Metropolitan Waste Control Commission, and Ivtetropolitan Mosquito Control DistricY. Of these metropolitan authorities, only the Metropolitan Council, Metropotitau Trausit Commission and Meimpolitan Mosquita Conk Distriet levy on real estate. Of these overlapping ta�ting authorities, the only two which could be affected more than nominatly by this taac, increment financing plan would be Independent School Disirict No. 625 and the County of Raansey.� �� Assuining captured assessed value of build-out of $13,204,107, in accordance with Section N hereof, and a constant 1986 millrate o£ 127 mills, the district will generate an annual tax increment of $1,676,910. The parceatage of this increment contributed by the various tasing jurisdictions, if tke development had occurred without public intervenrion, is shown below. Table 1 P.ercent of Tax Increment and Excess Tax increment Atinbutab2e to Taxirig Jurisdictions Current Taxing 7urisdiction Mills Percent Annual Tax Increment 13973.7 o� -yoy City of Saint Paui 36.850 School District #625 50.494 Ramsey County 32.225 Ofher �.494 127.137 29.4 40.6 25.7 43 100.0 $ 493,017 680,825 43�,965 72,108 $1,676,910 The following tabie represents the additional mills that would have to be levied to compensate for the loss of taac dollars in estimated taY increments and excess tas increments for each taxing jurisdiction. The tax increments derived from the project included in the talc increment district woutd be available to auy of the taxing jurisdictiovs were it not for public intervantion by the City. Aithough the increases in assessed value due to development will not be available for the application of the mill ievy for the durafion of the tax increment financing district, tlus new assessed value could eventuaLly permit a mill levy decrease. If it could be assumed that the captured assessed value was available for each taxing jurisdiction the non-receipt of t� dollars represented as tax increments may be detemuned. This determinafion is facilitated by estima6ng how much the mill levy for property outside of the taY increment financing district and the Hammond distcict wouid have to be increased to raise the same amount of tas dollars in each tazcang jurisdiction that would be available if the projects occurred without the assistance of the City. Taxing 3urisdictions Ciry of Saint Paul Schoal District #625 Ramsey County Table 2 Imvact on Taxin� 7urisdictions fif Development Cauld Occur Without Public Assistance) Adjusted* 19986 Assessed Value Required Mills Annual Tax Inerement $1,781,595,372 $1,781,595,372 $3,378,954,041 *District Assessed Va1ue Subtracted .000277 .000382 .000128 $493,011 $680,825 $430,965 Table 2 is relevant only if otte assumes the development would have occurred without tlae e�stence of the district and the development program. If this assuxnption is incorrect, and the Authority believes it is, then the only real impact on the assessed values of the other taxing jurisdicrions is: 1. Any inflationary values from the district which have been attributable to the tax base of these taxing jurisdictions will be lost during the duration of the district; and 2. Upan termination of the district, a11 taxing jurisdietions will benefit from the entire then-current assessed values. la Modifications 13973. i In accordance with Minnesota Statutes Section 273.74, Subdivision 4, a ta.z increment futancing ptan may be modified by an authority, provided that any reduction or ettlargement of geographic azea of the project or tax increment financing district, increase in amounY of bonded indebtedness to be incurred, including a detarmination to capitalize interest on the debt if that deternvnation was not a part of the original pian, or to increase or decrease the amount of interast on the debt to be capitalized, increase in the portion o£the capturecl assessed value to be retained by the auYhority, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the authority shali be agproved upon the notice and after the discussion, public heating and findings required fflr approval of the originaZ plan; provided that if au authority changes tke type of dis�ict from housing, redevelopment or econornic development to anotiier type of district, fbis change shaI1 not be considered a modification but shall require the authority to follow tke procedure set fortk in Sections 273.71 to 273.78 for adaption of a new plan, including certifccation of the assessed valuatiou of the district by tl�e county auditor. 'The geograpIuc azea af a tax increment financing district may be reduced, but shall not be enlazged after five years following the date of certification of the origuta3 assessed value by the county auditor or &ve years from August l, 1979, for taY increment financing districts authorized pzior to August 1,1979, except that development districts created pursuant to chapter 472A prior to August 1, 1979, may be reduced but shali not he enlarged after five years following the date of designa6on of such district. Q. Limitation on Daration of Tax Increment Financing Districts Pursuant to Minnesota Statutes Section 273.75, Subdivision 1, "no taY inctement sha11 be paid to an authority tkree years from tlze date of certification by the County Auditor unless within the thre�year period (a} bonds haue been issued pursuant to Section 7 or in aid of a project pursuant to auy other iaar, except revenue bonds issued pursuant to chapter 474, prior to the effective date of the Act; or (b) the authority has acquired property wittun the district; or (e) the authority has constt¢cted or caused to be eonshucted public improvements within the district..." The Housing and Redevelopment Anthority must therefore issue bonds, or acquire property, or construct or cause pub3ic improvements to be eonstracted by 1985 or the Office of the County Auditor may ctissoive the ta7c inerement distriet. R Limitarion on Qualificarion of Properry in Tax Increment District Not Subject to Improvement p�h - `- • u 2 7 '' � g ' t ursuane date of ''t 'to Minnesota Sta�uie� Szc�3 27.,.. _S, Sukd�vision 6, if after four years from th fication of the oriainal assessed value of the taac increment fznancin distnc p'" " f fo'Seciion ' 273.76, no demolition, rehabilitation, construction or rettovation of properry or other site prepazation, including impmvement of a street adjacent to a parcel but not installation of utiliTy service includin; sewer or water systems, has been commenced on a parcet located wiflvn a tax increment financing district by the authority or by the owner of the parcei in accordance wifh the fa�c inerement financing plan, no additional tax increment may be taken from that pazcel, and the originai assessed value of the taY increment financing district. If the authority or the owner of the parcel subsequenfly coinmences demolition, rehabilitataon or renovation or other site prepazafion on that pazcel incIuding improvement of a street adjacent to that pazcel, in aceardance witki the t� inerement finaucing plan, the authority shall certify to the county auditor Uzat tke acrivity has commenced, and the county auditor shall certify the assessed value thereof as most recently certified by the commissioner of revenue and add it to the original assessed value of the tax inerement financing district. For purposes of this subdivision "parcel" 'i 3913.7. ��-y�`l means a tract or plat of land established prior to the certificatioa of the district as a single unit for purQoses of assessment. S. Annual Disclosure Requirements Pursvant to Minnesota Statutes Section 273.74, Subdivision 5, a city must file an annual disclosure report for all tax increment financing districts. The report shatl be frled with the schooi boazd, county boazd and the vlinnesota Deparfinent of Energy, Planning and Development. The report to be filed by the City Administrator as district administrator shall include the following information_ The amount and source of revenue in ffie account; 2. The amount and purpose of expenditures from the account; 3. The amount of any pledge ofrevenues, including principal and interest on any outstandiug bonded indebtedness; 4. The original assessed value of the district; The captured assessed value retained by the authority; 6. The captured assessed value shared with other taxing districts; and 7. The tax increment receivad. . The annual disclosure report is designed to be a two-way medium of information disseuiination for both „: the Office of the Counry Auditor and the City. Should the auditot want additional information from the ��-. � authority regarding its tax increment financing activiries, such information should be requested prior to submission of the annuai disclosure report by the autharity. Similarly, the authority may utilize the annuai disclosure report as a means for requesting information from the Office of the County Auditor. Additionally, the authority must annuaily publish a statement in a newspaper of general circulation in the municipality showing the tas increment received and expended in that year, the originat assessed value, the captured assessed value, amount of outstanding bonded indebtedness and any additional information the authority deems necessary. T. Requirement for Agreements with Developer Pursuant to Minnesota Statutes 5ection 273.75, Subdivision 5, no more than 25 percent, be acreage, of the property to be acquired within a project wtuch contains a redevelopment distriat, or ten percent, by acreage, of the property to be acquired within a project which contains a housing or economic development district, as set forth in the tax increment financing pian, shx11 at any time be owned by an authority as a result of acquisition with the proceeds of bonds issued pursuant to Secrion 273.77 without the authority having prior to acquisition in excess of the percentages concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the authority should the development or redevelopment not be completed. '(3973.1. The agreements are only required if property is to be acquired witk bond proceeds. U. tlssessment Agreelneut Pursuant to Minnesota Statutes, Section 273.76, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 2'73.76, Subdivision 8, enter into an agreement in racordahle form with ttte developer of property within the tax increment financing district wIuch estabIishes a minuvum mazket value of fhe Iand and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the caunty assessor who shaSl raview ti�e plans and specifications for the improvements cottstructeci, review the market value previously assigned to the land upon which the improvements aze to be constructed and so long as the minimum mazket value contained in the assessment agreement appears in the Judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. V. NotificationofPriorPlannedImprovements Pursuant to Minnesota Statutes Section 273.76, Subdivision 4, the authority shall, after due and diligent search, accompany its request for certif cation ta the county auditor pursuant to Subdivision i, or its nofice of district enlargement pursuant to Section 273.74, Subdivision 5, with a iisting of aIl properties witlun the tax increment financing district or uea of enlargement for which building pernuts have been issued during the 18 months immediately preceding approval of the ta�c increment financing pian by the municipatity pursuant to Section 273.74, Subdivision 4. Tke county anditor shall incrsase the original assessed vafue of the district by the assessed valuatian of the improveznents for whick the building permit was issued, excluding the assessed valuation of improvements for which a building permit was issued during the three montk period immediate2y precediag said approval of tke t� increment financing pian, as certified by ffie assessor. W. Administration of ttie Tax Increment Economic Development I}istrict Adminisfration ofthe taY increment redevelopment d%strict wiII be handled by the Housing and Redevelopment Authority through the Department of Planning and Economic Develogment. X. TaY Increment Financing Accounts The tas increment received as a resuit of increases in the assessed value of ttie ta7� increment redevelogment district parcels wi11 be maintaivac� in the e�sting tax increment account by tke City Treasurer. The tax increment account will be separated from all other municipai development district accounts and �rant accounts and expen@ed ottly upoa sanctioned redevelopment activities identified in the finance pIan as amended. Y. Estimate of Amount of Bonds Indebfedness 280 Redevelopment Projecf 'I3973.1. o,_•�„y The City may finance pubfic irnprovements by saie of tas increment bonds. Inctement revenues may be nsed to fund a debt service reserve and to pay tne costs of any authorized credit enhancements needed to market the bonds. This does not preclude the HRA or Port Authority from borrowing funds to meet project costs. Such bonowing may be repaid from TaY Increment proceeds. 43973.'I o� -�aoy Appendix A 13973.1 o � -�to4 University/T.H. 280 (Westgate Office Industrial Park) Hazardous Suhstance Sub-District Amendment Dated Apri124, 2001 Creation of Hazardons Substanee Snb-District The taac increment plan relates to the creation within the Tas Inorement District of a Hazardous Substance Sub-Dislrict (the "HSS") pursuant to Minnesota Statutes Section 469.175, Subdivision 7. 2. Need and Public Purpose The University/T.H. 280 site has been used for over 100 years by heavy industry including railroads, paint manufacturing, waste kaulers, food processing and tank and divrn recyclers. Many current and previous properiy occupants stored, used, and disposed petroleum and hazazdous materials at the property. The heavy pollution at this site has resulted in a lack of private investment in this azea. As a result, the property has not provided adequate empioyment opportunities and has not contributed to the tax base and general economy of tlte Ci1y, the school district, the County and the State to its full potential. CSM Coiporation plans to develop the final phase of the Westgate Office Industrial Pazk. The proposed deveJopment consists of an 98,165 squaze foot light industrial office/showroom building. It is necessary that the Port Authority exereise its port authority powers under state law to develop, unplement and finance a program designed to encourage, ensure and facilifate the redevelopment of this property. This redevelopment will further accomplish the public purpose specified in tlus paragraph. Objectives for improvements in the Westgate Office Industtiai Park A. Provide job opportunities for 5aint Paul residents. Based on similaz development projects CSM Coxporation has completed in the Westgate Office Industrial Park and surrounding area, CSM estimates that up to 225 jobs may be created by the proposed development. B. Develop a light indnstrial ofFice/showroom buiIding in the Westgate Office Industrial Park. The site to be developed in the Dastrict will provide approximately 7.5 acres of developabte Iand. The proposed deaelopment consists of a 98,165 squaze foot building. Site remediation is expected to commence during the third quarter of calendar year 2001 and construction of the project zs anticipated to be complete before 3une 1, 2002. C. Expand the ta� base of the City of St Paul. It is e�ected that the taYable market value of site may increase by approximately $5,800,000 once the development is completed. This value will corne fram private 13973.1. development of approximately 98,165 square foot building with a high level of office finish and an anticipated construction valae of $66.�0 per square foot. The tasable value of new facilities is assumed to be 90% of their construction cost. D. Hazardous SnbsEance Remediation CSM Corporatian wi11 undertake the removal and retnediation of the soiZ, as specified in a Response Action Plan that was approved by tFie MPCA. Contaminants, such as volatile organic compounds, polychlorinated biphenyls (PCB), polynuclear aromatic kydrocarbons aud heavy metals were i@entified on the site. 4. Descriptiott of the Project's Sonrces and Uses The following, as required by Section 469.175, Subdivision 1(5}, aze estimates of the (A) cost of the Project, including administration expenses; (B) sources ofrevenue to fittance or otfierwise pay public costs; (C) the original taY capacity and captured tax capacity of the HSS District and (D) the duratiou of the F3SS bistrict's existence. A. Cost of the Project The total cost of the Project, assnming a lugh Ievel of office finish, is estimated at $9,SQO,Q00. B. Sources of Revenne 'The following aze the likely sources for funding the total Project: 1. TaY Increments Based on the assumptions set forth above, ta�c increments, net of up to 10% for adiui�istration expenses, are anticipated to equal$175,000 annually. 2. 5tate of Minnesota Department of Trade and Economic Development This agency has awazded funding in the amount of $50�,000 for the redevelopment of this polluted szte. 3. �rivate8ec�orCa��ir�aaors • ADM $800 • Northern Staz Company 60,000 • Burliagton 2vorthem To be datermiued 4. Gap Fundin� CSM Investors II, Inc. has committed to completing the project These funds wi21 be identified prior to full implementation of the Project. ' EuTlington Northem has not yet committed to this contn'bution. CSM is currendy in negotiations with Burlington Northem CSM Investors II, Inc, is prepazed to cover any gap fimding required to complete the project. t3973.4 0 1-�1 0 `! C. Original Tag Capacity and Captured Tas Capacity The ori�nal tax cagacity of the HSS is �4,573. Expe�ted remediation �penditures of $2,400,000 deducted from the original ta.x capacity results in the masimum capiured tax capacity allowed in the amount of �4,573. D. Dnration of the Hazardous Snbstance 5ub-District The original Taac Increment Dishict was certified in 1988. The duraiion of the original district runs 25 years from the first receipt by the Port Authority of tax increments, wl�ich wiil be through calendar year 2Q16. The duration of HSS District will run the lesser of (a) 25 yeazs or {b} the period of time necessary to recover the cost of the removal or remedzarion actions specified in the Response Action Plan that was the foundation for the creation of the HSS District. 5. Identification of all parcels to be included in the HSS Attacked hereto in Appendix B is a list of the Property Identification Numbers for all properties to be included in the HSS District, a map showing the Project area and a legal description idenrifying the boundaries of the HS5 District. 6. Hazardous Substance Snb-Bistrict Certification of the HSS will allow taxes attributable to the base value of the District to be used to reimburse or pay all or a portion of the estimated $2,400,000 of pollution testing and remediation cosis. As was mentioned in Secfion 4(C} above, the HSS will cause taxes on the base value of the District to be lost until such time as the pollution costs are satisfied. Total taxes payable in 2QQ0 were appmximately �6,951. As mentioned above, a Response Action Plan was submitted and approved by the MPCA. The Port Authority has studied the Tax Increment District and concluded the development would not reasonably be expected to occur solely through private investment and taz� increment otherwise available from the District, and therefore the use of the FiSS is deemed necessary. Loca1 Contribution Requirement For tax increment financing districts which request certification after 3une 30, 1994, Minnesota Statutes, Section 273.1399, Subdivision 6(d) provides that the Port Authority may be exempt from lacal gavernment aid or homestead and agriculturai credit aid penalty if the Port Anthority andlor the City of St. Paul makes a local contribution to the Project equal to five percent of the talc incremene. The Port Authoriry elec#s to make the local contributions in lieu of the state aid penalty. Five percent of the future value of the tax increments expected to be collected from the HSS District is approximately $5,716. The Port Authority will make an upfront conhibution (rather than a yeazly contribution) equal to 50% of the amount identified above in Section 4(B)(2). This amount constitutes a locai contribution in the amount of approximately $250,OQ0. All components of the local contribution are expected to be paid prior to December, 2001. Pursuant to Section 273.1399, Subdivision 6(d)(2), if the Port Authority fails to make the required coniribution for any year, the state aid reduction will apply that year. Ttie state aid reducrion will be equal to the greater of (A) tbe required local contribution (5°l0 of t� increments collected that year) or (B) the amount of the aid reduction that applies under Secrion 273.1399, Subdivision 3. 13973.1. Fiscal Disparities The Port Authority and the City have elected to compute Fiscal Disparities contribution for the Dishict in accordance with Secfion 469.177, Subdivision 3, pazagraph a. i3973.Y G4-4A'{ Appendix B 13973.1 o�..�loy, Port Authority of the City of St Paul UNNERSITY/T.H. 280 (WESTGATE OFFICE INDUSTRIAL PARK) Hazardous Substance Sub-District and Parcel List Hazardons Substance Sub-District Legal Descriptioa: Parcel 1: Outlot C, Westgate Addition No. 3, accordinJ to Ehe recarded plat thereof, Ramsey County, Minnesota. Parcel 2: That part ofLot 2, Block 1, Westgate Addition No. 3, according to the recorded plat thereof, Ramsey Counry, Miinnesota, which lies Northerly and Easterly of the following described line: Commencing at the Southeast corner of said Lot 2; thence South 89 degrees 47 minutes 02 seconds West, along the South line of said Lot 2, a distance of 455.75 feet to the point of begnning of the line to be described: thence North 00 degrees 08 minutes 03 seconds West, a distance of 22�.50 feet; thence South 89 degrees 36 minutes 54 seconds West, a distance of 167.12 feet to the West line of Southwest'/o ofthe Northwest'/4 of Secrion 29, Township 29 North, Range 23 West of the Fourth Principal Meridian and there said line terminates. Parcel3: That portion of the Southwest'/< of the Northwest'/a of Section 29, Township 29 North, Range 23 West of the Fourth Principal Meridian, Ramsey County, Miimesota, described as follows: Commencing at the Southwest comer of said Southwest 1 /4 of the Northwest 1 /< of said Section 29: thence Northerly along the West line of said Section 29, a d3stance of 971.2 feet to the actual point of beginning of the tract of land to be described; thence continuing l�ortherly along sid West iine of Section 29 a distance of 212.5 feet; thence Easterly, deflecting 89 degrees 44 minutes to the right, a distance of 410.00 feet; thence Southerly, deflecting 90 degree 16 minutes to the right, a distance of 272.5 feet; thence Westerly deflecting 89 degrees 44 minutes to the zight, a distance of 31�.76 feet; thence Northwesterly, deflecting 68 degrees 27 minutes 32 seconds to the right, a distance of 40.85 feet; thence Northerly, deflecting 21 degrees 32 minutes 28 seconds to the right, a distance of 22 feet; thence Westerly, deflecting 90 degrees 0� minutes to the left, a distance 78.97 feet to the point of begianing. Parcel 4: Which lies Nortberly and Easterly of the following described line: Commencing at the Southeast corner of said Lot 2; thence South 89 degrees 47 minutes 02 seconds West, along the South line of said Lot 2, a 08 minutes 03 seconds distance of 455.75 feet to the point of beginning of the line to be described; thence North QO de�rees West, a distance of 227.50 feet; thence South &9 degrees 36 minutes 54 seconds West, a distance of 16712 feet to the West line of the Southwest 'l< of the Northwest i/4 of said Section 29 and there said Iine teiminates. Parcei List: 29-29-23-23-0031 29-29-23-23-0034 29-24-23-23-0004 29-29-23-23-0003 13973.'1 ( � R 7# i5 *z .� � i p{ 3 � �. � t b� r ! I� � �� d i �� ;�� rai s� �� Ft ��t� �E 4t�� -,� �l�i�� , 4��f��2;�zi'��' �x �t��r3F ��i�i��{ ��i � 0 0 ¢ .� D Q l� � E � � iT —f—z—� � 0 4� V v � v � �Z ' NOISI�t (QBnS � � � �� 8€� �L�� Z � � / � O _ � � ! 'ON S� b'Ol l�7(t b � . � K P � e �� a t� '�{ a� be-yoy t�.,l�� a,g��,� y�`€�il �it � g�� Et�jr �f�EE�i� �F c: � �� PS � 0� .� �b Is ` ��$li��s`��xl�� •�� 6��(�.�OSpe � �i/_ f f . ,z —s—z—� .� F Appendi� C o�-yoy 13973.1 �� oy Universitv Avenue/T.H. 280 (Westgate Office Industrial Park) Aazardous Substance Sub-District Sources and Uses of Funds Sources• CSM Investors II, Inc. ADM Cantabution Northern Staz Contnbution Butlington Northem Contr�ufion' TIF Available for Project Hazazdous Substance Sub-District DTED Grant Total Sources Uses• Hard Cosfs: Acquisirion Environmental Testing Enduonmental Consulting Additional Boring and Analysis OvezbucdenlMobilizarion Excavate Foots Stabilize Hot Spots Regrading Site Clean Fill on Site Asphalt Cap Unusual Builtiing Costs (Piles) Demofition Costs Clean up Conringency Shel1 Building Costs O�ce Tenant Improvements Wazehouse Tenant Improvements Construction Contingency Total Hazd Costs Soft Costs: ArchitecturaUEngineering City Fees LegallSurvey{TitlelRecording Leasing Commissions Lender Fees Loan Fees Developer's Overhead Soft Cost Contingency Interim Interest Total Soft Costs Totat Uses 56,584,781 800,000 60,000 Q 1,403,657 156 500,000 $9,504,845 $ 805,770 150,000 100,000 50,000 56,905 714,600 676,500 169,135 244,540 265,763 300,000 165,369 289,281 2,944,950 1,472,475 17b,697 137.824 $8,719,8Q9 $ 147,248 29,450 40,000 184,059 17,500 51,924 I50,000 18,605 146,250 � 785,036 �9,504,845 ' Burlington Northem has not yet comxnitted funding to this project. CSNI Corporation is currendy in negoriations with Burlington Northem. 13973.7. o� -y�„ Resolution No. RESOLUTTON OF TFIE PORT AUTHORIT'Y OF TFIE CITY OF SAINT PAUL VJHEREAS, On September 22, 1987, t1�e Port Authority of the City of Saint Paul (the "Port Authority'� adopted its Resolution No. 2858, creating the University Avenue / T.H. 280 TaY Increment Financing DistricE (the "Dishict"), and, in connecrion with the creation of the District, the Port Authority Board approved the tax increment financing plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.048 through 460.068, inclusive; and Minnesota Statues, Secrions 469.174 through 469.179, inclusive; and WF3EREAS, the Port Authority has been advised that certain parcels within the District require envixonmental remediation before such parcels can be developed, and, in an effort to fiuther develop the District, it is proposed that the Port Authority establish a Hazardous Substance Subdistrict within the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; and WHEREAS, Port Authority management has previously prepared and submitted a Response Action Plaxt {"R AP'� to the Minnesota Pollution Control Agency (the "MPCA"), as required by Minnesota Staiutes, Section 469.174, Subdivision 17, and received the necessazy approvals from the MPCA for the RAP in September, 2QQ0; and WfLEREAS, on February 27, 2001, the Boazd of Commissioners of the Port Authority of the City of Saint Paul adopted its Resolution 1Vo. 3873 requesting that Port Authority managemenC calls for a public hearing to consider the mod'afication of the University Avenue i T.H. 280 Ta7t Increment Financing Dishict (the "District") to create a Hazaxdous Substance Subdistrict (the "SubdistricP'), authorizing Port Authority management to finalize the tax increment financing plan related thereto (the "Modified Plan"), and directing Port Authority management to submit the necessary notifications to the Ramsey County Auditor and the Clerk of the Saiut Paul School Board; and WHEREAS, Pozt Authority management has transmitted the necessary notices, has now finalized the Modified Plan and, pursuaut to notices published as required by statute, has held a public hearing on the Modified Plan, at which all persons present were given an oppoittulity to comment on the proposed Modified Plan; and WHEREAS, Port Authority management has prepared a budget for the cost of removal and remedial aetion specified in the RAP; and 74636."I . 0� -�1oy WFTEREAS, the Port Authority hereby detennines that: (a} development or redevelopment described in the Plan Ss not reasonably expected to occur solely tluough private inveshnent and taY increment otherarise available, and therefore the hazazdous substance subdistrict is deemed necessary; (b} other parceIs that aze not designated hazardous substance sites ate expected to be developed togefher with a designated hazardous substance site; and (c) the subdistrict is not Iarger than, and the period of time during which increments aze elected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site has set forth the reasons and supporting facts for each of these detemiinations in wziting, attached hereto as E�ibit A. WHEREAS, the Port Authority has performed all acrions reqnired by law to be performed prior to the estabiishment of the District, including, but not limited to, notification of Ramsey Coiu�ry and School District No. 625 (which have taxing jurisdiction over the property included in the District), and the holding of a public hearing. NOW, TF3E1tEFORE, BE IT RE30LVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foilows: l. The Modified Plan is hereby approved and adopted, and shall be placed on file in the office of the Port Authority. 2. The Port Authority elects to make a quaIifying local contriburion in accordance with Minnesota�Statutes, Section 273.1399, subdivision 6(d), in order to qualify for exemption from state aid losses set forth in Sectian 273.1399; sulidivision 6(c). 3. Port Authority management is hereby authorized to submit the Modified Plan to the City Council for its review and approval. 4. Upon approval of the Modified Plan by the City Council, Port Authority management, along with the Port Authority's legai counsel, is hereby authorized to proceed with the implementation of the Modified Plan and for this purpose to negotiate and finalize all further plans, resolutions, documents and contracts necessazy for this purpose. zossiiw� 2 O�-�� 5. Upon approval of the Modified Pian by the City Council, Port Authority mauagement is hereby authorized to forward a copy of the Plan to the Ramsey County Auditor and the �Iinnesota Depazhnent of Revenue pursuant to Minnesota Statutes, Section 469_ 175, subd. 2. Adopted: Apri124, 2001 ATTEST: Its Secretary PORT AL'THORITY OF TT� CTTY OF SAIN'I' PAUL By Its Chair ,- zossi io�i 3 � l -�to`� EXHIBIT A RESOLUTION # _ The reasons and facts supparting the findings for the crearion of the IIniversity Avenue / T.H. 280 Hazardous Substance Subdistrict as required pursuant to Minnesota Statutes, Secrion 469.175, Subdivision 7 are as follows: 1. Finding that the Subdistrict is a`Hazardous Substance Subdistrict. " The Snbdistrict is a IIazardons Substance Snbdistrict because the tiniversity AvenuetT.H. 280 site has been nsed for over 100 years by heavy indnstry including railroads, paint manufacturing, waste haulers, food processing and tank and drum recycters. As submitted in a Response Action Plan to the MPCA, the soil is heavily pollnted with contaminants such as polychlorinated biphenyls (PCB), polynuclear aromatic hydrocarbons and heavy metals. A portion of the sife falls within a Superfund site identified as the ADM/Hwy. 280 site. 2. Finding that the proposed development, in the opinion of the Port Aulhority, would not reasonably be expected to occur solely through privafe investment and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary: The high cost of remediating the parcels included in the Hazardous Substance Subdistricf makes the cost of land acquisition and fmancing of the proposed improvements prohibitive to private developers without the assistance provided through the Hazardous Substan¢e Snbdistrict. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of the District. 3. Finding that other parcels that are not designated hazardous substance sites are ecpected to be developed togefher with ihis designated hazardous substance site: The Subdistrict is within the Westgate Office Industrial Park. The proposed development wonld complete the final phase of the park. 4. Finding that the subdistrict is not larger than, and the period of time during which increments are eZected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site. The duration of the Subdistriet will run the lesser of 25 years or the period of time necessary to reeover tHe cost of the removal and/or remediation actions specified in the Response Action Plan. It is anticipated that the cost of the removal and/or remediation actions specified in the Response Action Plan will be $2,400,000, and that only a porEion of this amount, $150,000, will be recovered through the Hazardous Substance Subdistrict in approximately 25 years, based on current tax law. zosstio�i q b1-4o4, The modification to the University Avenue/T.H. 280 Tag Increment Rinaneing Pian to include a Hazardous Substance Subdistrict has been reviewed by the Port Authority and the Port Anthority hereby determines that the parcels included in the Hazardous Substance Subdistrict (which are the parcels included in the Response Action Plan) are not larger fhan neeessary, since onIy a smali poriion of the remediation costs will be recovered fhrongh fhe creation of the Hazardons Substance Snbdistrict 2oss� ta�� Council File # Green Sheet # Presented by Kathy Refeaed To , . n u. - RBSOLIITION ADOPTING THS MODIFICATIONS TO TEiE IINIVERSITY A / T.H. 280 TAX INCRSMBNT FINANCING PLAN TO CR&ATB A HAZARDOIIS SIIBSTANCS S ISTRICT IN THE IINIVERSITY AVENIIB j T.H. 280 TAX INCREMSNT FINANCING DSSTRICT BE IT RESOLVED by the City Council (the "Council") of the City Minnesota (the "City"), as follows: WHEREAS, On September 22, 1987, the Port AuChority of the Ci "POrt Authority") adopted its Resolution No. 2858, creating the Un 280 Tax Increment Financing District (the "District"), and, in co creation of the District, the Port Authority Board approved the plan relating thereto, all pursuant to and in accordance with M' n 469.�48 through 460.068, inclusive; and Minnesota Statues, Sec on 469.179, inclusive; and Saint Paul, �of Saint Pau1 (the ersity Avenue / T.H. ction with the increment financing ota Statutes, Sections 469.174 through WHEREAS, the Port Authority has been advised that cert in parcels within the District require environmental remediation before such parc ls can be developed, and, in an effort to further develop the District, the Port Autho ty has proposed the establishment of a Hazardous Substance Subdistrict wit 'n the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; d WHEREAS, Port Authority management has pre ously prepared and submitted a Response Action Plan ("RAP") to the Minnesota Pollution ontrol Agency (the "MPCA"), as required by Minnesota Statutes, Section 469.174, Subdivis'on 17, and received the necessary approvals from the MPCA for the RAP in September, 200 , and WHEREAS, on February 27, 2�01, the oard of Commissioners of the Port Authority of the City of Saint Paul adopted its Res ution No. 3873 requesting that Port Authority management call for a public hearing o consider the modification of the University Avenue / T.H. 280 Tas Increment Financing istrict (the "District") to create a Hazardous Substance Subdistrict (the "Subdis rict"), authorizing Port Authority management Co finalize the tax increment finan ng plan related thereto (the "Modified Plan"), and directing Port Authority manage nt to submit the necessary notifications to the Ramsey County Auditor and the Clerk o the Saint Pau1 School Board; and *i�IAEREAS, Port Authorit management has transmitted the necessary notices and, following a public hearing n the Modified Plan held on April 24, 2001, adopted its Resolution No- appr inq the Modified Plan; and WHEREAS, Port Aut rity management has prepared a budget for the cost of removal and remediation action spec fied in the RAP, and the sources of funds to be used to accomplish the same, all of whic is set forth in the Modified Plan; and WHEREAS, in it Resolution No. the Port Authority has determined that: (a) development or rede elopment described in the Plan is not reasonably expected to occur solely through pri te investment and ta�c increment otherwise available, and therefore the hazardous substan subdistrict is deemed necessary; (b) other parcels that are not designated hazar ous substance sites are expected to be developed together with a designated haz dous substance site; and (c) the subdistrict is not larger than, and the period of tim .during which increments are elected to he received is not longer than, Chat which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site, and �� tS ��a.+1 0� CITY OF SAINT PAUL, MINNESOl"A 14fi38.1 _ ��-�lo� WHEREAS, the City finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and supporting £acts £or each determination in writing, attached hereto and to the Port Authority's Resolution No. as Exhibit A. WHERF..AS, it has been represented to the City that the Port Authority has performed all actions required by law to be perEormed prior to the establishment of the District, including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jusisdiction over the property included in the District), and the holding of a public hearing; and WHEREAS, the Port Authority has asked that the City Council of the City of Saint Paul approve the modification to the Ta�c Increment Financing Plan for the University Avenue/ T.H. 280 Tax Increment Financing District to create therein a Hazardous Substance Subdistrict pursuant to Minnesota Statutes, Section 469.175, Subdivision 7_ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 1. The Modified Plan and the creation of the IIniversity Avenue/ T.H 280 Hazardous Substance Subdistrict, as approved by the Port Authority Board of Commissioners, is hereby approved and adopted. 2. The City Council hereby recognizes and ratifies Port Authority actions relating to the establishment of the Hazardous Substance Subdistrict, specifically, the Port Authority compliance with all notice requirements and public hearing, which was held on April 24, 2001, at which time individuals present were given an opportunity to comment on the proposed Modified Plan. 3. The City Council has investigated the facts and hereby accepts and ratifies the Port Authority findings pursuant to Minnesota Statutes, Section 469.175, Subdivision 7, and set forth hereto as Exhibit A. Approved by the Board: April 24, 2001 14638.1. Council File # O 1��d y Green Sheet # V 013 38' RESOLUTION OF SAINT PAUL, MINNESOTA �� Presented by Refened To Committee Date R&SOLIITION ADOPTING THE MODIFICATION5 TO THS IINIVSRSITY AVSNIIS / T.H. 280 TAX INCREMSNT FINANCING PLAN TO CRSATS A HAZARDOIIS SIIBSTANCS SIIBDISTRICT IN THE IINIV8RSITY AV8ND8 / T.H. 280 TAX INCRBtdBNT FINANCING DISTRIC'I` BE IT RESOLVED by the City Council (the "Council") of the City of Saint Paul, Minnesota (the "City"), as follows: WHEREAS, On September 22, 1987, the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 2858, creating the University Avenue / T.H. 280 Tax Increment Financing District (the "District"), and, in connection with the creation of the District, the Port Authority Board approved the tax increment financing plan relating thereCO, all pursuant to and in accordance with Minnesota Statutes, Sections 469.048 through 460.068, inclusive; and Minnesota Statues, Sections 469.174 through 469.179, inclusive; and WHEREAS, the Port Authority has been advised that certain parcels within the District require environmental remediation before such parcels can be developed, and, in an effort to further develop the District, the Port Authority has proposed the establishment o£ a I3azardous Substance Subdistrict within the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; and WHEREAS, Port Authority management has previously prepared and submitted a Response Action Plan ("RAP") to the Minnesota Pollution Control Agency (the "MPCA"), as required by Minnesota Statutes, Section 469.174, Subdivision 17, and received the necessary approvals from the MPCA for the RAP in September, 2000; and WHEREAS, on February 27, 2001, the Board of Commissioners of the Port Authority of the City of Saint Pau1 adopted its Resolution No. 3873 requesting that Port Authority management call for a public hearing to consider the modification of the University Avenue / T.Ei. 280 Tax Increment Financing District (the "District") to create a Hazardous Substance Subdistrict (tlie "Subdistrict"), authorizing Port Authori[.y management to finalize the tax increment financing plan related thereto (the "Modified Plan"), and directing Port Authority management Co submit the necessary notifications to the Ramsey County Auditor and the Clerk of the Saint Paul School Board; and WI3EREAS, Port AuthoriCy management has transmitted the necessary notices and, following a public hearing on the Modified Plan held on April 24, 2001, adopted its Resolution No. __ approving the Modified Plan; and WHEREAS, Port Authority management has prepared a budget for the cost o'f removal and remediation action specified in Che RAP, and the sources of funds to be used to accomplish the same, all of which is set forth in the Modified Plan; and WHEREAS, in its Resolution No. the Port Authority has determined that: (a) development or redevelopment described in the Plan is not reasonably expected to occur solely through private investment and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary; (b) other parcels that are not designated hazardous substance sites are expected to be developed together with a designated hazardous substance site; and (c) the subdistrict is not larger than, and the period of time during which increments are elected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site, and 14720. I. o i - yd`i WHEREAS, the City 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 and to the Port Authority's Resolution No. as E�chibit A. WHEREAS, it has been represented to the City that the Port Authority has performed a11 actions required by 1aw to be performed prior to the establishment of the District, including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jurisdiction over the property included in the District), and the holding of a public hearing; and WHEREAS, the Port Authority has asked that the City Council of the City of Saint Paul approve the modification to the Taac Increment Financing Plan for the University AvenueJ T.H. 280 Tax Increment Financing District to create therein a Hazardous Substance Subdistrict pursuant to Minnesota Statutes, Section 469.175, Subdivision 7. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows_ 1. The Modified Plan and the creation of the University Avenue/ T.H 280 Hazardous Substance Subdistrict, as approved by the Port AuChority Board of Commissioners, is hereby approved and adopted. 2. The City Council hereby recognizes and ratifies Port Authority actions relating to the establishment of the Hazardous Substance Subdistrict, specifically, the Port Authority compliance with all notice requirements and public hearing, which was held on April 24, 2001, at which time individuals present were given an opportunity to comment on the proposed Modified Plan. 3. The City Council has invesCigated the facts and hereby accepts and ratifies the Port Authority findings pursuant to Minnesota Statutes, Section 469.175, Subdivision 7, and set forth hereto as Exhibit A. Adopted: April 25, 2001 14720.1. C 1 _ 4,4�1 �XHrBIT A RESOLUTION � The reasons and facts supporting the findings for the creation of the University Avenue / T.H. 28Q Ha2ardous Substance Subdistrict as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 7 are as follows: Finding that the Subdistrict is a"Hazardous Substance Subdistrict. " The Subdistrict is a Hazardous Substance Subdistrict because the University Avenue/T.H. 280 site has been used for over 100 years by heavy indnstry including railroads, paint mannfacturing, waste haulers, food processing and tank and drum recyclers. As submitted in a Response Action Plan to the MPCA, the soil is heavily polluted with contaminants such as polychlorinated biphenyls (PCB), polynuclear aromatic hydrocarbons and heavy metals. A portion of the site falls within a Superfund site identified as the ADM/Hwy. 280 site. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be expected to occur solely through private investrnent and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary • The high cost of remediafing the parcels Sncluded in the Hazardous Substance Subdistrict makes the cost of land acquisition and Tinancing of the proposed improvements prohibitive to private developers without the assistance provided through the Hazardous Substance Subdistrict. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of the District. Finding that other parcels that are not designated hazardous substance sites are expected to be developed together with this designated hazardous substance site.• The Subdistrict is within the Westgate Office Industrial Park. The groposed development would complete the final phase of the park. 4. Finding that the subdistrict is not Zarger than, and the period of time during which increments are elected to be received is not Zonger than, that whicls is necessary in the opinion of the authorily to provide for the additional costs due to the designated hazardoau substance site. The duration of the Subdistrict will run the lesser of 25 years or the period of time necessary to recover fhe cost of the removal and/or remed"zation actions specified in the Response Action Plan. It is anticipafed that the cost of the removal and/or remediation acfions specified in the Response Action Plan will be $2,400,000, and that only a porfion of this amount, $150,000, will be recovered through the Hazardous Substance Subdistrict in approximately 25 years, based on current tax law. zoss � io�� q o�- �tay, ��x�� • . -, :-..,. �__ ��_� :. , . „ �__ . -.,.. __� ��__ .,. �__ - �_� _��'� Adopted by Councal: Date A�� a S` ' �pp� Adoprion Certified by Council Secretary By: �� F'� - Approved by Mayor: Date � � �� By � �� e uested by Department of:_ �� / By: Form Appzqve3�hy City Attomey �-� " B (`-''J ��`_ ' T ` /�_z� t� � � __ Approved by Mayor for Submissi n to Council BY � -E��'�-�� ) 14638.1 o�-�dy Paul Port Authority �� GREEN SHEET No l �i 33$ Johnson/Laurie Hansen On April 25, 2001 TOTAL # OF SIGNQTURE PAGES o[ruune+rowExrart arv�ou+n � j � — X l,� - rn.., � �� Cl/ rn.e�nx _ o .�,�� ❑,�,� o Y ��,�,� ❑ �cuP au t.ocanoras FoR sicninrurtE► Approval of the modification of the University Avenue/T.H. 280 Tax Increment Financing Plan to include a Hazardous Substance Sub-District and make the necessary statutory findings and elections in connection with the plan and the District. PLANNING COMMISSION CIB CAMMIITEE CIVIL SERVICE CAMMISSION Board r�a� n� v�� a �� a w�aea r« uae a�n�rte VES NO Has ihis persoNfirtn eva been a dh emPbYes� YES NO Doec ihis peisoMim V� a sidll rat riorma�lYC� Uy anY curtent ciLY empbyeel YES NO' Is Mis persoNfxm a farpeted vendaY7 YES NO Approval of this i�odified Tzx Increment Financing Plan to create a N_azardous Substznce 5ub-District will assist the redevelopment and remediation of the final phase of the Westgate O£fice Industrial Park. The proposed development will consist of a 98,000 square Poot light industrial of�ice/showroom building which will maximize job potential with approximately 225 jobs being provided on site. RFf;F_fVED APR 17 �991 11S4DVANTAGES IF APPROVED MAYOR'S O�FICE )ISADVANTAGES IFNOTAPPROVED Private Sector development is not likelv to occur due to the pollution and the high cost of remediation. AMOUNT OF TRANSACTION cosrrt�vaua euoe� (arec� oN� YEY NO SOURCE Tax Increment Financinq/ ,�crmryNw+�e6e Grant Receipts MFORM4TON (IXPWt� o1-4oy SAINT' PAt7L PoRT AU�xoxi't� TO: !�I' , .•� • ► Board of Commissioness (Meeting of Tuesday, April 24, 2001) DA'PE: Apsi! 18, 2001 Jiil T. Tong�� Laurie J. N en Kenneth R. Johnson SUBJECI': UNlVERSITY AVENUE(C.ti. 280 (WES7GATE) MODIFICATION OF TIF PLAN PUBLiC HEARIIdG RESOLUTION NO. ACTION REQUESTED Final approval of the modifica6on of the University Avenue/T.H. 280 Tax Increme�t Financing Plan to include a Hazardous Substance Sub-District. PUBLIC PURPOSE Approval of the Hazardous Substance Sub-District will provide partial funding for: • Development of a 98,165 square foot light industrial office/showroom. • Creation of approximately 225 jobs. • Remediation of 4 parcels in Westgate Industriai Park. BACKGROUND On September 22, 1987, the Board of Commissioners approved the creation of University Avenue/T.H. 280 Tax lncrement Financing District. The main focus of the district is to improve the tax base and expand employment opportunities. CSM Corporation is in the process of acquiring a portion of the Northem Star Company site, which is located in the University�f.H. 280 (Westgate) Tax Increment Financing District. CSM Corporation plans to develop this site as the final phase (CSM V) of the Westgate Office Industrial Park. The proposed development consists of a 98,165 square foot light industriai officelshowroom buiiding. CSM esfimates fhat 225 jobs will be created by the proposed devefopment. CSM is requesting the creation of a the site necessitates the cseafion payment of the costs for remediation. Hazardous Substance Sub-District. Pollution found at of the Hazardous Substance Sub-District to assist in iasaz�. 6 �-yoy The Port Authority and CSM have developed a financing plan for this project, which contains several different funding sources, inctuding tax increment finar�cing. The osiginai tax increment-financing pfan wilf be mod�ed to reflect the creation of the HSS. This mod�cation is documented in appendices A, B and C to the original plan. A copy of the originai plan and the appendices are attached for your review. A summary of this projecYs sources and uses is included as Appendix C of the financing plan. We recommend final approval of the modification of the Universiiy AvenuelT.H. 280 (Westgate) Tax Increment Financing Pian. 14647.1. o�-yoy TAX IN�REMENT FINAI3CING DISTRICT SEPTEMBER 22, 1987 MINNESOTA STATUTES, SECTIONS 273.71-273.78 FOR LJNIVBRSITY AVENUElT.H. 284 (WESTGATE OFFICE Ii�DUSTRIAL PARK) AMENDED FEBRUARY 27, 2001 TO 1NCLUDE HAZARDOi7S SUBSTANCE SiJB-DISTRICT t3973.1. 0�-�o`I Table of Contents A. Introduction — Identification of Need ........................................................................ ............. 3 B. Statutory Authority and Description of Dishict ...................................................................... 4 C. Statement of Purpose and Objectives ........................................................................ ............. 4 D. Development Program ..............•---.............................................................._.............. _............ 7 E. Description of TaY Increment Dislxict Properiy ..................................................................... 9 F. Development Activities Under Contract ............................................................................... 10 G. Expected Development Activities ....................................................................:.................... 11 H. Classificiarions of Tax Tncrement Financing District ........................................................... 11 I. Property in Acquisition ......................................................................................................... I 1 J . Estimates of Costs ................................................................................................................. 12 K. Idenrification of the Use of Tas Increments ......................................................................... 12 L. Limitation on Administrative Expenses ................................................................................ I3 M. Souces of Revenue to Finance Public Cost .......................................................................... 13 N. DurationoftheDistrict .........................................................................................................14 O. Impact on Other TaYing Jurisdictions ................................................................................... 14 P . Modifications ........................................................................................................................15 Q. Limitation on Duration of Tax IncremenC Financing Districts ............................................. lfi R. L'unitation on Qualification of Property in T� Increment District Not Sub}ect to Improvement ......................................................................................................................... 16 S. Annual Disclosure Requirzments ......................................................................................... 17 T. Requirement for Agreements with Developer ...................................................................... 17 U. Assessment Agreement .........................................................................................................18 V. Notification of Prior Planned Tmprovements ........................................................................ i 8 W. Administration of the TaY Increment Economic Development District ...............................18 X. Tax Increment Financing Accounts ......................................................................................18 Y. Estimate of Amount of Bonds Indebtedness ......................................................................... i 8 Appendix A- Amendment to Create Hazardous Substance Sub-District Appendix B- Hazardous Substance Sub-District Parcel List and Site Map Appendix C- Sources and Uses for the Hazazdous Subsfance Sub-District '13973.'I. a1-4a� Tax Increment Financi4g Plan A. Inimduction — Identification of Need The Boazd ofthe Housing and Redevelopment Authority of Saint Paul and the Council ofthe City of Saint Paul (the "City'� and the Port Authority of the Ciry of Saint Paul kave determinecl that a need exists ta establish a taz� increment financuzg district within t3ie boundaries of the University Avenue/T.H. 280 Redevelopment Area, in which are located various aging disfribution warehouses and railroad spur tracks. The District is bounded generally by Trunk Highway 280 (T.A. 280) on the east, the Burlinn on Northem Raikoad maiYiline tracks on the north, The Saint Paul-Minneapolis municigal boundary and Berry Street on the west, and by Ilniversity Avenue, with the addition of a hiangular piece at EILis Avenue and Curfew Street, on the south. Specific boundaries aze outlined in Appendix 1, attached hereto and made a part thereof. The tax parcels included in tUe Tax Increment Rinancing District are desczibed by property identification number and address in Section E of this plan. The area included in the District consists of approximately 62 acres occupied primarily by aging distribution warehouses and raikoad spur tracks. There are eight single-family houses along the eastern edge of the area separated from the South Saint Anthony neighborhood by T.H. 280. It is obvious that the area, wYuch has superb traffic access, is not being used to its full potential. Most of the buildings are in very poor condition, there are several vacant structures, approximately one-third of the site is underdeveloped, and the number of jobs and the assessed values of the properties are relatively low. The resulting image conveys a sense. of blight and probably discourages private reinvestment. The 1)ishict's exceltent access_is a result of the proximity to fke interchange �of T.H. 280 and I-44 and its service by University Avenue anfl Territorial Road. Public financial assistauce is necessary to accomplish the ob}ectives of the University Avenue-T.A. 280 Redevelopment Plan. It is highiy unlikely that the private market would even be v,*illing to take the risks inherent in buying and redeveloping the great amount of property involved. Private redevelopment would more 1'akely be piecemeal, uncoordinated, and unabie to assemble enough land, resulting in a less than safisfactory result in this pivotal location. There has been very little or not private interest shown in redevelopment of the District in many yeazs; property conditions have become steadily worse over time. Additionally, many of the present street surf'aces need to be reconstructed in order to alleviate structural deficiencies, pravide curb and gutter, and to repair the daznage that would be created by the replacement of the sanitary sewer and water lines. These utiliries, which exist throughout much of the District, need to be upgraded in order to meet contemporary industrial needs. In short, a successful industrial rebirth for the area requires a comprehensive solntion rather than perpetuating undesirable conditions that were created many years ago. 93913.1 B. Statutory Authority and Description of Llistrict The Saint Paul Housing and Redevelopment Authority is authorized to create a tax increment financing district pursuant to Minnesota Statutes, Sectiotts 273.71-283.78. 'Fhe tax increment district will be a redevelopment dishict, as defined in Section 273.73 subdivision 10, of the Minnesota T� Increment Pinancing Act, and wiu be estabtished in conjunctian with the Redevetopment Plan for the University Avenue/T.H. 280 District. Furthermore, the Port Authority of the City of Saint Paul and the Housing and Redevelopment Authority of the City of Saint Paul area establishing a Redevelopment Project which qualifies as a Redevelopment Proj ect and as blighted and deteriorated areas under the Housing and Redeveiopment Act, Section 462.421(13) and as an Industrial Development District under Minnesota Statutes 458.191. The purpose of these plans and project is to deveIop or redevelop sites, lands, or areas within the pro}ect area in conformance with the requirements of the above statutes and with the City of Saint Paul's Comprehensive Plan pariicnlazly the Land Usa, Eoonomic Development Strategy, and D'sstrict 12 District P1an sections and to implement recommendations of studies completed in order to 'vnplement the Ciiy's Comprehensive P2an. Specific boundaries of fhe District aze outlined in Appendix 1, attacked hareto and made a part t�ereof. C. Statement of Purpose and Objectives The HRP.l3'ort Authority will use tax increments and proceeds of tas increment notes/bonds payable therefrom to pay public costs of redevalopinent associated withfihe University Avenue/T.F3. 280 Redevelopment Project, as identified in the University Avenue/T.H. 280 Redevelopment Plau, which plan fiu set forth tfie objectives of the 3�tA/Port Authority for improvement of ffie Project and the Project Area. The HRA/Port Autharity has determined that a need exists to nndertake a redevelopment effort in the Project Area, which effort shall include acquiring and assembIing land, dzmolishing certain economicalty obsolate st�uctures, improving soiI quality, and extending and improving streets and utilities to provide attractive development sites for locatly-based firms aud to encourage companies from outside the City to relocate in Saint Paul. These efforts will improve the tas base and expand e�iployri�enY opportu�ties. ° �� The purpose of the L3niversity Avenue✓T.Ii. 280 Tas Increment Pinancing Plan is to i�npleznent the Redevelopment Plan and the following goals and obj ectives of the Comprehensive Pian of ttie City of Saint Paul, including the Land Use Plan, Economic Development Sirategy, and tha Dishict 12 Plan 1983 sections; and additional objectives in order to impiement these Plan policies: Land Use Plan "The City will contiaue to work with private devetopers and the Saint Paut Port Authoriry to facilitate the maintenance and creation of energy-efficient industrial pazks." "T'he City will develop and maintain an inventory of vacant sites and facilities suitable for industrial use to meet a variety of industrial needs" 13973.1. o � -�io�l "To ma�mi�.e employment opportunities and land uti3izarion in Saint Paul, labor-intensive industries— with high jobs per acre rations—should be encauraged to locate or stay in the City." "The City will investigate zoning provisions and fiscal and non-fiscal incentives which can be used to encourage labor-intensive indushy to locate in the City." The Land Use Plan designates the University AvenuelT.II. 284 Redevelopment Area ior redevelopment for labor-intensive development. Economic Development Strategy: "Saint Paul shall continue to provide assistance towazds industrial and commercial development, within a set of guidelines designed to ensure the most efficient use of. the City's available land and development resources." "Saint Paul sha11 increase the suppiy of land available for commerciaUindustrial expansion and development, focusing attention on specific parcel sizes and types required. The City, through the Port Authority, shall continue its policy of acquiring land for industrial purposes, where that land is not better suited for other piuposes. Examples inciude vacant or under-utilized railroad lands, or other parcels that are sufficiently removed from residenrial or commercial lands so as to not adversely afFect them." "Saint Paul shall pursue institutional policies and changes designed to improve its role as a facilitator or commercial and in�ustrial expansion and development ".. District 12 Plan 1983: "The District 12 Community Council should encourage private image improvement on a property-by- properiy basis along University Avenue. Problems which need to be treated include poor building conditions and treaiments, inappropriate signage, lack of screening, and lack of irees and shrubs." "The City should work with the community council to improve areas of the University Avenue corridor maintained by the City. Deficiencies include inconsistent sidewalk and boulevard surface treatment, frequent and dupIicarive pazking and directional signs, lack of trash containers and attractive street lighting, and inadequate landscaping." "Encourage private development of vacant lands in Energy Park, the former Sussel Company property and the Adnural Merchant Trucking property. Commercial and industrial uses with minimal negative iznpacts on nearby residenrial areas should be given highest priority consideration." T'he District 12 Plan designates the University Avenue/T.H. 280 Redevelopment Area for redevelopment into higher intensity industriai uses. In 1985 the District 12 Community Council completed a"Development Strategy for the West of T.H. 280", the Redevelopment Area. That strategy took the City's Comprehensive Plan recommendations and appIied them to the Project Area. That strategy recommended that a Redevelopment Project be 13973.1 undertaken by the Port Authority and the fiR P, in this azea. The Strategy recommended that the area be redeveloped for the creation of Iight industrial, office/research, and service related indus�ries witil an emphasis on labor-intensive activiiies. The District 12 Stra#egy also pursued the Distriet 12 Plan recommendations regazding University Avenue, emphasizing the need to impmve the physical image of the avenue and of T.Ei. 280 as gateways into Saint Paul and tlus major employment center. University Avenue - T.H. 280 Redevelopment Study Based on the District 12 Plan and the District 12 Strategy, The City of Saiat Paul completed a Redevelopment Study of the Project Area, fiuther refining Comprehensive Plan goals and objects as well. The Study defined the following goals for the Project Area: Fncrease the number of jobs in the Study Area. Desi� and mazket the Study Area primarily as a looation for small industrial-office businesses which have a high ratio of employees per acre. Increase the assessed valx�e of real estate in the Study Area. Attract high-quality land investments by creating a camprekensively planned industrial-business park which provides a develogment environment comparable to tize better-quality contemporary parks. Improve the image af the Study Area. Respond to the needs and desires of the community in the Redeve2opment of the- Study Area. The "Redevelopment Siudy" further elaboiates strategies which the Port Authoriry and/or the HRA will consider in the specific implementation activities to be conducted in the Pzoject Area and District. And the following objectives, important to the implementation of Comprehensive Plan recommendations and directions: To remova or rehabili#ate substandard and blighting buildings. To assemb"te adequate'ry size2� p�ee�s far �°.k;.xzelc�nent. _,, .. ._.. „ �o coordinate acquisition, site preparation and impzovements, pmvision of necessary public improvements and facilities, and to spread and equalize the cost thereof, in order to accomplish the entire project development at a cost reasanably related to the public purposes to be served. To provide private developers with information regarding zoning; land use eontrols and other City and Plan requirements; information and assistance in obtauung conshuction and permanent financing; information and assistance regarding construction of site and public unprovements and measures necessary to correct site conditions, ail in accoidarice with development agreements. To Snance the development costs of the Project by means of tax increment generated by the Project nnprovements and development 13973.1. a�.yoy To nnance development by a combinafion of private and public fnancing under authority and subject to the requirements of federal, state and local law, and ordinauce for the provision of revenue bond financing. D. Development Program The development program for tlus Project is further set forth in Section G ofthis Plan. Generally, the role of the public sector in coxnmerciai and industrial development has been to assemble and deliver development sites, and provide conirols and incentives in order to encourage and obtain needed develogment. Among the various mechanisms available to the City and its redevelopment agencies are: 1. Acquisition to acquire as authorized under the Housing and Redevelopment Act, Minnesota Statutes, an the Tax Increment Financing Act. (a) blighted azeas, buildings and other real property, where removing such can remove, prevent or reduce blight or the causes of blight; (b) open or undeveloped land blighted by virtue of conditions which have prevented normal development by private enterprise; (c) underused or inappropriately used land which may be converted to other uses recommended by the Plan; (d) lands or properiy necessary to complete assembly of pazcels suitable for redevelopment; (e} other real or personal property as necessary to accomplish the objectives of the Plan; and ( fl lands or property deemed to be unsafe or hazardous to the pubIac's health and safety. 2. Site Prepazation and Public Improvements (a) demolition, removal or rehabilitation of buildings and improvements; (b) activities to conect adverse physical characteristics of the faulty land division or i�adequate access or utility service or other development-inl�ibiting conditions; (c) activities deemed necessary or desirable to remove, reduce or prevent other blighting factors aad causes ofblight; (d) activities deemed necessary or desirable to unprove and prepare sites, including the conection of soil conditions, for commercial and industrial development or redevelopment purposes in accordance with the Plan; and 13973.1 (e) installation, construction or reconshliction of streets, utilities, and other public improvements or facilities as necessary or desirable for cazrying out Plan objectives. ( fl any studies or research that may be necessaty to detern�ine the traffic or Iand usa impacts of any development proposal andJor particular sireet and traffic pattern. (g) provisions of relocatiou services, assistance aud benefits in accordance with Minnesota Statutes Chapter 117. 3. Commercial and Industrial Financing It is tfie City and ifs redevelapment agencies intention to make availabie as appropriate and feasi�ble, and upon the sole determinarion of said agencies, affordable sources of financing to developers, corporatians, sma11 businesses and other organizations involved in the commercial, office, and industrial sectors. There are a number of financing mechanisms that caa be used as appropriate to accomplish the City and its redevelopment agencies goals and objecrives: (a) Industsial Development Revenue Bond Loans — This provides below market rate loans to finance manufacturing projects; {b) Urban Development Action Crrant Loans — T3us federaliy funded prograzn provides low interest, long-term Ioans to industrial, housiag, aad commercial projects with special efnpliasis on distressed areas; (c) Tax Increment Fivanciag — This locally administered tool provides a means by wkick to redevelop blighted areas, assist industry and create affordable housing; (d) Special Assessment Financing —'I'his locally raised and administered source o£financing provides benefiting property owners an affordable interest nte and Iong term financing mechanism by wluch to repay pubIic improvements; (e) SBA Sd3 Loan Guazantee Program — Tlus federally sponsored program provides Iaan b warantees to banks providing Ioans to qualified sma11 businesses; (i� Such other local, regional, state, federal, an private financing programs or mechanisms as may be a�ailable during the duration of the District. 4. Land and Other Financing Assistance The City and its redeve3opment agencies may enter into Iong-teim lease arrangements rather than land sale contracts where appropriate. One type of Iease arrangement would allow a developer to spread land costs over a longer period thus reducirtg cash eqaity requirements. 'i'he City and its redevelopment agencies may, where appropriate and at tkeir sole discretioa, also exacute agreements ta make geriodic assistance payments to developers to reduce the difference between 73973.1. o�.y�y 5 � E. fair market rents obtainable, aud deet service and expenses necessary to operate a project at a feasible level. In selecfing methods ofproject finance, the Port Authority and/or the HRA wiIl take into account the forms of oth� assistance availabie and negotiate with individual developers so that a method can be chosen which provides svfficient incentive for the developer to create quality product. Developer of Each Pazcel in District Developer wilI occur in accordance with Section G of the Plan on each parcel of the District either pursuant to private financing, or thtough redevelopment agencies in which latter case all developers skall execute min;mum ta�c assessment agreements with the Ramsey County Assessor. Promotion of Development of the Redevelopment Area To implement this Flas�, the Port Authority andlor the HRA will provide for, or cause to provide for, the following, as is necessary and appropriate. fiDMII3ISTRATION of those public processes and requirements deemed necessary to support ox allow developmenUredevelopment of properry to oocur in accordance with this Plan. If applicable and advisable, the Port Authority and/or the HRA will provide or cause to provide: (a) Coordinarion of project activity, financing and review with human service agencies, cifizen participation entities, and other state, regional and federal government agencies; (b) Initiation of vacations, rezonings, dedication of public rights-of-ways, or other pubIic actions as may become necessary to implement this Plan, in accordance with state and local statutes. This will be undertaken by the Port Authority, HIZA or the redeveloper. (c) Enforcement of building codes, design controls, site covenants, provisions to ensure compliance with state and local requirements relating to non-discrimination, income levels, environmental quality, faithful performance, and any other pubiic objectives relating to the purchase, development, improvement or use of the land; (d) Properiy exchanges. Description of Tax Iucrcment District Property '£he IJni�ersity Avenue/T.H. 280 Tax Tncrement Financing District tax parcels ideutified by Properiy Identification I3umbers and Property Addresses are the following: l. 292923330016 2580 University Avenue 2. 292923320037 2600 University Avenue 13973.'I � F 13973."I 3. 4. 5, 6. 7. 8. 9. 10. 11. 12. i3. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23, 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 29292332d030 292923320038 292923320029 292923320028 292923320027 29292332Q026 242923320019 292923320Q20 292923320023 292923320024 292923320025 292923320021 292923320002 292923320003 292923320004 292923320005 292923320006 292923320007 292923320Q08 292923320009 292923320010 292923320021 2929233200I2 292923320013 292923320014 292923320015 292923320016 292923230012 292923230013 292923230014 292923230001 2'9292'323��2' 292923230005 292923230015 292923230007 292923230008 29292323dQi6 Development Activities Under Confract 2545 University Avenue 25&3 University Avenue 2631 University Avenue 2633 University Avenue University 2635 University 2640 Territoriai Chazies Temtorial Charles Curfew 2618 Territoriai Tezritoriai Territoriat 958 Berry 2625 Territoriat EusYis Eustis 935 Eustis 935 Eustis 929 Eustis 927 Eustis 923 Eustis 9I7 Eusris 913 Eustis 907 Eustis 903 Eustis 899 Eustis 1000 Berry 965 Eustis 1005 Eustis Eustis i3massi�e� � � � - .. . Unassigned Unassigned Uaassigted Uuassigned Unassigned At the time this Plan was prepared, no redevelopment contracts kaiT been entered into aanong the City the HRA, tlte Port Authority, or other redevelopment agencies, or a third party. See Section G for development activity contemplated during the duration of the Universiry Avenue/T.H. 280 T� Inerement Financing bistrict o�-yo�l G. Expected Development Activities A more predictable schedule o£ development activities can be estimated upon the resolution of two major issues relating to the Project District. As each of these issues is resolved, private development and other public development activities are expected to be commenced at a scheduIe, level, and sequence consistent with normal indushy standards associated with a proj e�t of this magnitude. The two prominent issues involved in the success of the overall design of this new industriat-office park, and of the design of the individual sites, aze: 1. the tuneliness of acquisition and subsequent removal of all blighted structures, and; 2. the creation of a new develapment within unified desi� guidelines. Consequentiy, since the plan for land acquisition is important in achieving the desired change ofimage, and in indicating a public commitment to the project, and in eIiminating the negative effect which a prolonged acquisition schedule would have on property owners: the entire tract of land is proposed for immediate purchase, and; 2. building design and landscaping guideIines should be adopted as presented in the University Avenue(T.Ei. 280 Redevelopment Plan, Sectian N, "Land Use", subsections A-E and Section V, subsecrion E, "Urhan Design GuideLines," and subsection F, "Other processes for Imple�nenting Land Use Designafions." Those specific portions of the Redevelopment Plan are included in Appendiac 2, attached hereto and made a part thereof. H. Classifications of Ta�c Increment Financing District The City Council of the city of Saint Paul, Minnesota, in deteiminiug the need £or a Tax Increment Financing Districts in accordance with Minnesota Statute, Section 273.71-273.78 inclusive, finds that the district to be established as a redeveIopment distsict pursuant to Minnesota Statutes, Secrion 273.'73, Subdivision 10. Furthermore, the Port Autharity of fhe City of Saint Paui and the Housing and Redevelopment Authority of the City of Saint Paul are establishing a redevelopment project which quaIifies as redevelopment project in blight and deteriorated areas under the Housing and Redevelopment Act, Section 462.421 (13) in as an indushial development district under Muuiesota Statutes 454458.191. I. Property in Acquisifion The land use plan proposes to remove most of the e�sting businesses and all of the housing the study area The HRA may require by eininent domain certain privately owned parcels of land in the land use area necessary to carry out the project for disposition for redevelopment in accordance with the project 13973.1. redevelopment plan at a consideration covering acquisition cost including relocation of displaced occupants. � Estimates of Costs Financing needs of the 280 Taa� Increment Financing District Property Acquisition Building DemoIition Residents and Business Relocation Sireet and Utiiity Tmprovements Street Landscaping and Lighting General Grading DiscounY./Cost ofIssuaace Debt Service Reserve Capitalized Interest Projected Debt 3ervice Shortfatl Administration Legal Miscellaneons Contingency Total �io,zz�,00a 1,26b,500 1,319,000 1,237,000 166,45Q 150,000 735,000 2,100,000 5,703,7�2 1,450,000 100,000 75,000 100,000 715,298 $zs,zss The total amount of bonded indebtedness for the 280 Redevelopment Project is $25,285,000. Identification of the Use of Tax Increments Pursuaut to Minnesota Statutes Section 273.75, Subdivision 4, all revenues derived from the tas increment dishict shall be used in accordance with this Tas Inerement Financin� Plan. The revenues shall be used for the following purposes: 1. 3. C� 5 To pay principal of and interest on bonds issued in a�ci of L'�e-�''fs�:c:, if.zny; _ To repay any loans including interest on these loans as authorized by the FiRA/Port Authority to pay for any site and public unprovement costs; To fund and repleiush a debt service reserve far tke project of principal and interest an bonds used to finance a project; To pay for project costs and administrative eacpenses as identified in the project budget described in Section 7 above; and ° To pay for project costs in addirion to those identified in the project budget, which are determined by the HRA/Port Anthority to be necessary to the accomplislunent of the redevelopment and tax inerement financing plans. 93973.7. o� -�.e�y L. M. Limitation on Administrative Eapenses Pursuant to Minnesota Statutes Secrion 273.75, Subdivision 3, as amended, aduvnistrarive expenses ue limited to ten percent (10%} of the total taY increment eapenditures. "Adsninistrative expenses" means all expenditures of an authoriry other than amounts paid for the purpose of land or amounts paid to contractors or others providing materials and services, inciuding architectural and engineering services, directiy connected with the physical development of the real property in the district, relocation benefits paid to our services provided for persons residing or businesses located in the district, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 273.77. "Administrative expenses" includes amounts paid for services provided by bond counsel, fiscal oonsultants, and plamung and economic development consultants. Sances of Revenue to Finance Public Cost It is intended that the enrire public project cost, to the extent possible, be paid from the tas increment generated by the redevelopment. This does not include the HRAlPort Authority from using other funds, at its discretion, to pay such cost. Estimated Revenue Sources of revenue to fnance public costs 1. Tax Increment Estimate: 280 Redevelopment Proiect (estimate) Construction and Land Cost Total Estimated Market Value Total Assessed Value at 43% Assessment Ratio Original Assessed Value Captured Assessed Valuation Captured Assessed Increment - $45,855,000 - 36,684,000 - 15,774,120 - 2,S1Q,103 - 13,26�4,017 - 1,684,530 The increment resulting from the above captured value will be used in the following categories in order: To pay principal on interest and bonds to finance project 2. To fund and reglemsh debt service account for bonds issued to finance project To finance or otherwise pay financing and public development costs of the prajact pursuant to Minnesota Statutes, Chapter 462 To pay administrafive expenses and ofher project related costs. 13973.7. 5. To retum to County of Ramsey for distribution to impacted taxing juzisdicrions_ �� C�� Duration of the District Pursuant to Minnesota Statutas Section 273.75, Subdivision 1, the maximum duration of a tax increment redevelopment dishiot is 25 years from the date of receipt of the first increment by the authority. It is estimated that the HRA could cotlect taic increments on the district through the year 2014. Impact on Other Taxing Jurisdictions The overlapping jurisdictions upon whose assessed valuatioa this tax increment fivancing plan could have an impact aze: - Independent School District No. 625, whose boundaries aze coterminous with those of the City of Saint Paul. - County of Ramsey, to whose assessed totai valuation the City of Saint Paul contributes about 54%. - Housing and Redevelopment Authority of the City of Saint Paul, wluch is the requesting authority. The HRA may be considered as being identical witk the City af Saint Pau1 for purposes af this analysis. - Port Authority of the City of Saint Paul, whose powers of levy and uses of property ta�c revenue is limited. For this analysis, they may be treated the same as the City of Saint Paul. - Metropolitan authorities — such as the Metropolitan Council, Metropolitan Auport Commission , Metropolitan Transmit Commission, Metropolitan Waste Control Commission, and Ivtetropolitan Mosquito Control DistricY. Of these metropolitan authorities, only the Metropolitan Council, Metropotitau Trausit Commission and Meimpolitan Mosquita Conk Distriet levy on real estate. Of these overlapping ta�ting authorities, the only two which could be affected more than nominatly by this taac, increment financing plan would be Independent School Disirict No. 625 and the County of Raansey.� �� Assuining captured assessed value of build-out of $13,204,107, in accordance with Section N hereof, and a constant 1986 millrate o£ 127 mills, the district will generate an annual tax increment of $1,676,910. The parceatage of this increment contributed by the various tasing jurisdictions, if tke development had occurred without public intervenrion, is shown below. Table 1 P.ercent of Tax Increment and Excess Tax increment Atinbutab2e to Taxirig Jurisdictions Current Taxing 7urisdiction Mills Percent Annual Tax Increment 13973.7 o� -yoy City of Saint Paui 36.850 School District #625 50.494 Ramsey County 32.225 Ofher �.494 127.137 29.4 40.6 25.7 43 100.0 $ 493,017 680,825 43�,965 72,108 $1,676,910 The following tabie represents the additional mills that would have to be levied to compensate for the loss of taac dollars in estimated taY increments and excess tas increments for each taxing jurisdiction. The tax increments derived from the project included in the talc increment district woutd be available to auy of the taxing jurisdictiovs were it not for public intervantion by the City. Aithough the increases in assessed value due to development will not be available for the application of the mill ievy for the durafion of the tax increment financing district, tlus new assessed value could eventuaLly permit a mill levy decrease. If it could be assumed that the captured assessed value was available for each taxing jurisdiction the non-receipt of t� dollars represented as tax increments may be detemuned. This determinafion is facilitated by estima6ng how much the mill levy for property outside of the taY increment financing district and the Hammond distcict wouid have to be increased to raise the same amount of tas dollars in each tazcang jurisdiction that would be available if the projects occurred without the assistance of the City. Taxing 3urisdictions Ciry of Saint Paul Schoal District #625 Ramsey County Table 2 Imvact on Taxin� 7urisdictions fif Development Cauld Occur Without Public Assistance) Adjusted* 19986 Assessed Value Required Mills Annual Tax Inerement $1,781,595,372 $1,781,595,372 $3,378,954,041 *District Assessed Va1ue Subtracted .000277 .000382 .000128 $493,011 $680,825 $430,965 Table 2 is relevant only if otte assumes the development would have occurred without tlae e�stence of the district and the development program. If this assuxnption is incorrect, and the Authority believes it is, then the only real impact on the assessed values of the other taxing jurisdicrions is: 1. Any inflationary values from the district which have been attributable to the tax base of these taxing jurisdictions will be lost during the duration of the district; and 2. Upan termination of the district, a11 taxing jurisdietions will benefit from the entire then-current assessed values. la Modifications 13973. i In accordance with Minnesota Statutes Section 273.74, Subdivision 4, a ta.z increment futancing ptan may be modified by an authority, provided that any reduction or ettlargement of geographic azea of the project or tax increment financing district, increase in amounY of bonded indebtedness to be incurred, including a detarmination to capitalize interest on the debt if that deternvnation was not a part of the original pian, or to increase or decrease the amount of interast on the debt to be capitalized, increase in the portion o£the capturecl assessed value to be retained by the auYhority, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the authority shali be agproved upon the notice and after the discussion, public heating and findings required fflr approval of the originaZ plan; provided that if au authority changes tke type of dis�ict from housing, redevelopment or econornic development to anotiier type of district, fbis change shaI1 not be considered a modification but shall require the authority to follow tke procedure set fortk in Sections 273.71 to 273.78 for adaption of a new plan, including certifccation of the assessed valuatiou of the district by tl�e county auditor. 'The geograpIuc azea af a tax increment financing district may be reduced, but shall not be enlazged after five years following the date of certification of the origuta3 assessed value by the county auditor or &ve years from August l, 1979, for taY increment financing districts authorized pzior to August 1,1979, except that development districts created pursuant to chapter 472A prior to August 1, 1979, may be reduced but shali not he enlarged after five years following the date of designa6on of such district. Q. Limitation on Daration of Tax Increment Financing Districts Pursuant to Minnesota Statutes Section 273.75, Subdivision 1, "no taY inctement sha11 be paid to an authority tkree years from tlze date of certification by the County Auditor unless within the thre�year period (a} bonds haue been issued pursuant to Section 7 or in aid of a project pursuant to auy other iaar, except revenue bonds issued pursuant to chapter 474, prior to the effective date of the Act; or (b) the authority has acquired property wittun the district; or (e) the authority has constt¢cted or caused to be eonshucted public improvements within the district..." The Housing and Redevelopment Anthority must therefore issue bonds, or acquire property, or construct or cause pub3ic improvements to be eonstracted by 1985 or the Office of the County Auditor may ctissoive the ta7c inerement distriet. R Limitarion on Qualificarion of Properry in Tax Increment District Not Subject to Improvement p�h - `- • u 2 7 '' � g ' t ursuane date of ''t 'to Minnesota Sta�uie� Szc�3 27.,.. _S, Sukd�vision 6, if after four years from th fication of the oriainal assessed value of the taac increment fznancin distnc p'" " f fo'Seciion ' 273.76, no demolition, rehabilitation, construction or rettovation of properry or other site prepazation, including impmvement of a street adjacent to a parcel but not installation of utiliTy service includin; sewer or water systems, has been commenced on a parcet located wiflvn a tax increment financing district by the authority or by the owner of the parcei in accordance wifh the fa�c inerement financing plan, no additional tax increment may be taken from that pazcel, and the originai assessed value of the taY increment financing district. If the authority or the owner of the parcel subsequenfly coinmences demolition, rehabilitataon or renovation or other site prepazafion on that pazcel incIuding improvement of a street adjacent to that pazcel, in aceardance witki the t� inerement finaucing plan, the authority shall certify to the county auditor Uzat tke acrivity has commenced, and the county auditor shall certify the assessed value thereof as most recently certified by the commissioner of revenue and add it to the original assessed value of the tax inerement financing district. For purposes of this subdivision "parcel" 'i 3913.7. ��-y�`l means a tract or plat of land established prior to the certificatioa of the district as a single unit for purQoses of assessment. S. Annual Disclosure Requirements Pursvant to Minnesota Statutes Section 273.74, Subdivision 5, a city must file an annual disclosure report for all tax increment financing districts. The report shatl be frled with the schooi boazd, county boazd and the vlinnesota Deparfinent of Energy, Planning and Development. The report to be filed by the City Administrator as district administrator shall include the following information_ The amount and source of revenue in ffie account; 2. The amount and purpose of expenditures from the account; 3. The amount of any pledge ofrevenues, including principal and interest on any outstandiug bonded indebtedness; 4. The original assessed value of the district; The captured assessed value retained by the authority; 6. The captured assessed value shared with other taxing districts; and 7. The tax increment receivad. . The annual disclosure report is designed to be a two-way medium of information disseuiination for both „: the Office of the Counry Auditor and the City. Should the auditot want additional information from the ��-. � authority regarding its tax increment financing activiries, such information should be requested prior to submission of the annuai disclosure report by the autharity. Similarly, the authority may utilize the annuai disclosure report as a means for requesting information from the Office of the County Auditor. Additionally, the authority must annuaily publish a statement in a newspaper of general circulation in the municipality showing the tas increment received and expended in that year, the originat assessed value, the captured assessed value, amount of outstanding bonded indebtedness and any additional information the authority deems necessary. T. Requirement for Agreements with Developer Pursuant to Minnesota Statutes 5ection 273.75, Subdivision 5, no more than 25 percent, be acreage, of the property to be acquired within a project wtuch contains a redevelopment distriat, or ten percent, by acreage, of the property to be acquired within a project which contains a housing or economic development district, as set forth in the tax increment financing pian, shx11 at any time be owned by an authority as a result of acquisition with the proceeds of bonds issued pursuant to Secrion 273.77 without the authority having prior to acquisition in excess of the percentages concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the authority should the development or redevelopment not be completed. '(3973.1. The agreements are only required if property is to be acquired witk bond proceeds. U. tlssessment Agreelneut Pursuant to Minnesota Statutes, Section 273.76, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 2'73.76, Subdivision 8, enter into an agreement in racordahle form with ttte developer of property within the tax increment financing district wIuch estabIishes a minuvum mazket value of fhe Iand and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the caunty assessor who shaSl raview ti�e plans and specifications for the improvements cottstructeci, review the market value previously assigned to the land upon which the improvements aze to be constructed and so long as the minimum mazket value contained in the assessment agreement appears in the Judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. V. NotificationofPriorPlannedImprovements Pursuant to Minnesota Statutes Section 273.76, Subdivision 4, the authority shall, after due and diligent search, accompany its request for certif cation ta the county auditor pursuant to Subdivision i, or its nofice of district enlargement pursuant to Section 273.74, Subdivision 5, with a iisting of aIl properties witlun the tax increment financing district or uea of enlargement for which building pernuts have been issued during the 18 months immediately preceding approval of the ta�c increment financing pian by the municipatity pursuant to Section 273.74, Subdivision 4. Tke county anditor shall incrsase the original assessed vafue of the district by the assessed valuatian of the improveznents for whick the building permit was issued, excluding the assessed valuation of improvements for which a building permit was issued during the three montk period immediate2y precediag said approval of tke t� increment financing pian, as certified by ffie assessor. W. Administration of ttie Tax Increment Economic Development I}istrict Adminisfration ofthe taY increment redevelopment d%strict wiII be handled by the Housing and Redevelopment Authority through the Department of Planning and Economic Develogment. X. TaY Increment Financing Accounts The tas increment received as a resuit of increases in the assessed value of ttie ta7� increment redevelogment district parcels wi11 be maintaivac� in the e�sting tax increment account by tke City Treasurer. The tax increment account will be separated from all other municipai development district accounts and �rant accounts and expen@ed ottly upoa sanctioned redevelopment activities identified in the finance pIan as amended. Y. Estimate of Amount of Bonds Indebfedness 280 Redevelopment Projecf 'I3973.1. o,_•�„y The City may finance pubfic irnprovements by saie of tas increment bonds. Inctement revenues may be nsed to fund a debt service reserve and to pay tne costs of any authorized credit enhancements needed to market the bonds. This does not preclude the HRA or Port Authority from borrowing funds to meet project costs. Such bonowing may be repaid from TaY Increment proceeds. 43973.'I o� -�aoy Appendix A 13973.1 o � -�to4 University/T.H. 280 (Westgate Office Industrial Park) Hazardous Suhstance Sub-District Amendment Dated Apri124, 2001 Creation of Hazardons Substanee Snb-District The taac increment plan relates to the creation within the Tas Inorement District of a Hazardous Substance Sub-Dislrict (the "HSS") pursuant to Minnesota Statutes Section 469.175, Subdivision 7. 2. Need and Public Purpose The University/T.H. 280 site has been used for over 100 years by heavy industry including railroads, paint manufacturing, waste kaulers, food processing and tank and divrn recyclers. Many current and previous properiy occupants stored, used, and disposed petroleum and hazazdous materials at the property. The heavy pollution at this site has resulted in a lack of private investment in this azea. As a result, the property has not provided adequate empioyment opportunities and has not contributed to the tax base and general economy of tlte Ci1y, the school district, the County and the State to its full potential. CSM Coiporation plans to develop the final phase of the Westgate Office Industrial Pazk. The proposed deveJopment consists of an 98,165 squaze foot light industrial office/showroom building. It is necessary that the Port Authority exereise its port authority powers under state law to develop, unplement and finance a program designed to encourage, ensure and facilifate the redevelopment of this property. This redevelopment will further accomplish the public purpose specified in tlus paragraph. Objectives for improvements in the Westgate Office Industtiai Park A. Provide job opportunities for 5aint Paul residents. Based on similaz development projects CSM Coxporation has completed in the Westgate Office Industrial Park and surrounding area, CSM estimates that up to 225 jobs may be created by the proposed development. B. Develop a light indnstrial ofFice/showroom buiIding in the Westgate Office Industrial Park. The site to be developed in the Dastrict will provide approximately 7.5 acres of developabte Iand. The proposed deaelopment consists of a 98,165 squaze foot building. Site remediation is expected to commence during the third quarter of calendar year 2001 and construction of the project zs anticipated to be complete before 3une 1, 2002. C. Expand the ta� base of the City of St Paul. It is e�ected that the taYable market value of site may increase by approximately $5,800,000 once the development is completed. This value will corne fram private 13973.1. development of approximately 98,165 square foot building with a high level of office finish and an anticipated construction valae of $66.�0 per square foot. The tasable value of new facilities is assumed to be 90% of their construction cost. D. Hazardous SnbsEance Remediation CSM Corporatian wi11 undertake the removal and retnediation of the soiZ, as specified in a Response Action Plan that was approved by tFie MPCA. Contaminants, such as volatile organic compounds, polychlorinated biphenyls (PCB), polynuclear aromatic kydrocarbons aud heavy metals were i@entified on the site. 4. Descriptiott of the Project's Sonrces and Uses The following, as required by Section 469.175, Subdivision 1(5}, aze estimates of the (A) cost of the Project, including administration expenses; (B) sources ofrevenue to fittance or otfierwise pay public costs; (C) the original taY capacity and captured tax capacity of the HSS District and (D) the duratiou of the F3SS bistrict's existence. A. Cost of the Project The total cost of the Project, assnming a lugh Ievel of office finish, is estimated at $9,SQO,Q00. B. Sources of Revenne 'The following aze the likely sources for funding the total Project: 1. TaY Increments Based on the assumptions set forth above, ta�c increments, net of up to 10% for adiui�istration expenses, are anticipated to equal$175,000 annually. 2. 5tate of Minnesota Department of Trade and Economic Development This agency has awazded funding in the amount of $50�,000 for the redevelopment of this polluted szte. 3. �rivate8ec�orCa��ir�aaors • ADM $800 • Northern Staz Company 60,000 • Burliagton 2vorthem To be datermiued 4. Gap Fundin� CSM Investors II, Inc. has committed to completing the project These funds wi21 be identified prior to full implementation of the Project. ' EuTlington Northem has not yet committed to this contn'bution. CSM is currendy in negotiations with Burlington Northem CSM Investors II, Inc, is prepazed to cover any gap fimding required to complete the project. t3973.4 0 1-�1 0 `! C. Original Tag Capacity and Captured Tas Capacity The ori�nal tax cagacity of the HSS is �4,573. Expe�ted remediation �penditures of $2,400,000 deducted from the original ta.x capacity results in the masimum capiured tax capacity allowed in the amount of �4,573. D. Dnration of the Hazardous Snbstance 5ub-District The original Taac Increment Dishict was certified in 1988. The duraiion of the original district runs 25 years from the first receipt by the Port Authority of tax increments, wl�ich wiil be through calendar year 2Q16. The duration of HSS District will run the lesser of (a) 25 yeazs or {b} the period of time necessary to recover the cost of the removal or remedzarion actions specified in the Response Action Plan that was the foundation for the creation of the HSS District. 5. Identification of all parcels to be included in the HSS Attacked hereto in Appendix B is a list of the Property Identification Numbers for all properties to be included in the HSS District, a map showing the Project area and a legal description idenrifying the boundaries of the HS5 District. 6. Hazardous Substance Snb-Bistrict Certification of the HSS will allow taxes attributable to the base value of the District to be used to reimburse or pay all or a portion of the estimated $2,400,000 of pollution testing and remediation cosis. As was mentioned in Secfion 4(C} above, the HSS will cause taxes on the base value of the District to be lost until such time as the pollution costs are satisfied. Total taxes payable in 2QQ0 were appmximately �6,951. As mentioned above, a Response Action Plan was submitted and approved by the MPCA. The Port Authority has studied the Tax Increment District and concluded the development would not reasonably be expected to occur solely through private investment and taz� increment otherwise available from the District, and therefore the use of the FiSS is deemed necessary. Loca1 Contribution Requirement For tax increment financing districts which request certification after 3une 30, 1994, Minnesota Statutes, Section 273.1399, Subdivision 6(d) provides that the Port Authority may be exempt from lacal gavernment aid or homestead and agriculturai credit aid penalty if the Port Anthority andlor the City of St. Paul makes a local contribution to the Project equal to five percent of the talc incremene. The Port Authoriry elec#s to make the local contributions in lieu of the state aid penalty. Five percent of the future value of the tax increments expected to be collected from the HSS District is approximately $5,716. The Port Authority will make an upfront conhibution (rather than a yeazly contribution) equal to 50% of the amount identified above in Section 4(B)(2). This amount constitutes a locai contribution in the amount of approximately $250,OQ0. All components of the local contribution are expected to be paid prior to December, 2001. Pursuant to Section 273.1399, Subdivision 6(d)(2), if the Port Authority fails to make the required coniribution for any year, the state aid reduction will apply that year. Ttie state aid reducrion will be equal to the greater of (A) tbe required local contribution (5°l0 of t� increments collected that year) or (B) the amount of the aid reduction that applies under Secrion 273.1399, Subdivision 3. 13973.1. Fiscal Disparities The Port Authority and the City have elected to compute Fiscal Disparities contribution for the Dishict in accordance with Secfion 469.177, Subdivision 3, pazagraph a. i3973.Y G4-4A'{ Appendix B 13973.1 o�..�loy, Port Authority of the City of St Paul UNNERSITY/T.H. 280 (WESTGATE OFFICE INDUSTRIAL PARK) Hazardous Substance Sub-District and Parcel List Hazardons Substance Sub-District Legal Descriptioa: Parcel 1: Outlot C, Westgate Addition No. 3, accordinJ to Ehe recarded plat thereof, Ramsey County, Minnesota. Parcel 2: That part ofLot 2, Block 1, Westgate Addition No. 3, according to the recorded plat thereof, Ramsey Counry, Miinnesota, which lies Northerly and Easterly of the following described line: Commencing at the Southeast corner of said Lot 2; thence South 89 degrees 47 minutes 02 seconds West, along the South line of said Lot 2, a distance of 455.75 feet to the point of begnning of the line to be described: thence North 00 degrees 08 minutes 03 seconds West, a distance of 22�.50 feet; thence South 89 degrees 36 minutes 54 seconds West, a distance of 167.12 feet to the West line of Southwest'/o ofthe Northwest'/4 of Secrion 29, Township 29 North, Range 23 West of the Fourth Principal Meridian and there said line terminates. Parcel3: That portion of the Southwest'/< of the Northwest'/a of Section 29, Township 29 North, Range 23 West of the Fourth Principal Meridian, Ramsey County, Miimesota, described as follows: Commencing at the Southwest comer of said Southwest 1 /4 of the Northwest 1 /< of said Section 29: thence Northerly along the West line of said Section 29, a d3stance of 971.2 feet to the actual point of beginning of the tract of land to be described; thence continuing l�ortherly along sid West iine of Section 29 a distance of 212.5 feet; thence Easterly, deflecting 89 degrees 44 minutes to the right, a distance of 410.00 feet; thence Southerly, deflecting 90 degree 16 minutes to the right, a distance of 272.5 feet; thence Westerly deflecting 89 degrees 44 minutes to the zight, a distance of 31�.76 feet; thence Northwesterly, deflecting 68 degrees 27 minutes 32 seconds to the right, a distance of 40.85 feet; thence Northerly, deflecting 21 degrees 32 minutes 28 seconds to the right, a distance of 22 feet; thence Westerly, deflecting 90 degrees 0� minutes to the left, a distance 78.97 feet to the point of begianing. Parcel 4: Which lies Nortberly and Easterly of the following described line: Commencing at the Southeast corner of said Lot 2; thence South 89 degrees 47 minutes 02 seconds West, along the South line of said Lot 2, a 08 minutes 03 seconds distance of 455.75 feet to the point of beginning of the line to be described; thence North QO de�rees West, a distance of 227.50 feet; thence South &9 degrees 36 minutes 54 seconds West, a distance of 16712 feet to the West line of the Southwest 'l< of the Northwest i/4 of said Section 29 and there said Iine teiminates. Parcei List: 29-29-23-23-0031 29-29-23-23-0034 29-24-23-23-0004 29-29-23-23-0003 13973.'1 ( � R 7# i5 *z .� � i p{ 3 � �. � t b� r ! I� � �� d i �� ;�� rai s� �� Ft ��t� �E 4t�� -,� �l�i�� , 4��f��2;�zi'��' �x �t��r3F ��i�i��{ ��i � 0 0 ¢ .� D Q l� � E � � iT —f—z—� � 0 4� V v � v � �Z ' NOISI�t (QBnS � � � �� 8€� �L�� Z � � / � O _ � � ! 'ON S� b'Ol l�7(t b � . � K P � e �� a t� '�{ a� be-yoy t�.,l�� a,g��,� y�`€�il �it � g�� Et�jr �f�EE�i� �F c: � �� PS � 0� .� �b Is ` ��$li��s`��xl�� •�� 6��(�.�OSpe � �i/_ f f . ,z —s—z—� .� F Appendi� C o�-yoy 13973.1 �� oy Universitv Avenue/T.H. 280 (Westgate Office Industrial Park) Aazardous Substance Sub-District Sources and Uses of Funds Sources• CSM Investors II, Inc. ADM Cantabution Northern Staz Contnbution Butlington Northem Contr�ufion' TIF Available for Project Hazazdous Substance Sub-District DTED Grant Total Sources Uses• Hard Cosfs: Acquisirion Environmental Testing Enduonmental Consulting Additional Boring and Analysis OvezbucdenlMobilizarion Excavate Foots Stabilize Hot Spots Regrading Site Clean Fill on Site Asphalt Cap Unusual Builtiing Costs (Piles) Demofition Costs Clean up Conringency Shel1 Building Costs O�ce Tenant Improvements Wazehouse Tenant Improvements Construction Contingency Total Hazd Costs Soft Costs: ArchitecturaUEngineering City Fees LegallSurvey{TitlelRecording Leasing Commissions Lender Fees Loan Fees Developer's Overhead Soft Cost Contingency Interim Interest Total Soft Costs Totat Uses 56,584,781 800,000 60,000 Q 1,403,657 156 500,000 $9,504,845 $ 805,770 150,000 100,000 50,000 56,905 714,600 676,500 169,135 244,540 265,763 300,000 165,369 289,281 2,944,950 1,472,475 17b,697 137.824 $8,719,8Q9 $ 147,248 29,450 40,000 184,059 17,500 51,924 I50,000 18,605 146,250 � 785,036 �9,504,845 ' Burlington Northem has not yet comxnitted funding to this project. CSNI Corporation is currendy in negoriations with Burlington Northem. 13973.7. o� -y�„ Resolution No. RESOLUTTON OF TFIE PORT AUTHORIT'Y OF TFIE CITY OF SAINT PAUL VJHEREAS, On September 22, 1987, t1�e Port Authority of the City of Saint Paul (the "Port Authority'� adopted its Resolution No. 2858, creating the University Avenue / T.H. 280 TaY Increment Financing DistricE (the "Dishict"), and, in connecrion with the creation of the District, the Port Authority Board approved the tax increment financing plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.048 through 460.068, inclusive; and Minnesota Statues, Secrions 469.174 through 469.179, inclusive; and WF3EREAS, the Port Authority has been advised that certain parcels within the District require envixonmental remediation before such parcels can be developed, and, in an effort to fiuther develop the District, it is proposed that the Port Authority establish a Hazardous Substance Subdistrict within the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; and WHEREAS, Port Authority management has previously prepared and submitted a Response Action Plaxt {"R AP'� to the Minnesota Pollution Control Agency (the "MPCA"), as required by Minnesota Staiutes, Section 469.174, Subdivision 17, and received the necessazy approvals from the MPCA for the RAP in September, 2QQ0; and WfLEREAS, on February 27, 2001, the Boazd of Commissioners of the Port Authority of the City of Saint Paul adopted its Resolution 1Vo. 3873 requesting that Port Authority managemenC calls for a public hearing to consider the mod'afication of the University Avenue i T.H. 280 Ta7t Increment Financing Dishict (the "District") to create a Hazaxdous Substance Subdistrict (the "SubdistricP'), authorizing Port Authority management to finalize the tax increment financing plan related thereto (the "Modified Plan"), and directing Port Authority management to submit the necessary notifications to the Ramsey County Auditor and the Clerk of the Saiut Paul School Board; and WHEREAS, Pozt Authority management has transmitted the necessary notices, has now finalized the Modified Plan and, pursuaut to notices published as required by statute, has held a public hearing on the Modified Plan, at which all persons present were given an oppoittulity to comment on the proposed Modified Plan; and WHEREAS, Port Authority management has prepared a budget for the cost of removal and remedial aetion specified in the RAP; and 74636."I . 0� -�1oy WFTEREAS, the Port Authority hereby detennines that: (a} development or redevelopment described in the Plan Ss not reasonably expected to occur solely tluough private inveshnent and taY increment otherarise available, and therefore the hazazdous substance subdistrict is deemed necessary; (b} other parceIs that aze not designated hazardous substance sites ate expected to be developed togefher with a designated hazardous substance site; and (c) the subdistrict is not Iarger than, and the period of time during which increments aze elected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site has set forth the reasons and supporting facts for each of these detemiinations in wziting, attached hereto as E�ibit A. WHEREAS, the Port Authority has performed all acrions reqnired by law to be performed prior to the estabiishment of the District, including, but not limited to, notification of Ramsey Coiu�ry and School District No. 625 (which have taxing jurisdiction over the property included in the District), and the holding of a public hearing. NOW, TF3E1tEFORE, BE IT RE30LVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foilows: l. The Modified Plan is hereby approved and adopted, and shall be placed on file in the office of the Port Authority. 2. The Port Authority elects to make a quaIifying local contriburion in accordance with Minnesota�Statutes, Section 273.1399, subdivision 6(d), in order to qualify for exemption from state aid losses set forth in Sectian 273.1399; sulidivision 6(c). 3. Port Authority management is hereby authorized to submit the Modified Plan to the City Council for its review and approval. 4. Upon approval of the Modified Plan by the City Council, Port Authority management, along with the Port Authority's legai counsel, is hereby authorized to proceed with the implementation of the Modified Plan and for this purpose to negotiate and finalize all further plans, resolutions, documents and contracts necessazy for this purpose. zossiiw� 2 O�-�� 5. Upon approval of the Modified Pian by the City Council, Port Authority mauagement is hereby authorized to forward a copy of the Plan to the Ramsey County Auditor and the �Iinnesota Depazhnent of Revenue pursuant to Minnesota Statutes, Section 469_ 175, subd. 2. Adopted: Apri124, 2001 ATTEST: Its Secretary PORT AL'THORITY OF TT� CTTY OF SAIN'I' PAUL By Its Chair ,- zossi io�i 3 � l -�to`� EXHIBIT A RESOLUTION # _ The reasons and facts supparting the findings for the crearion of the IIniversity Avenue / T.H. 280 Hazardous Substance Subdistrict as required pursuant to Minnesota Statutes, Secrion 469.175, Subdivision 7 are as follows: 1. Finding that the Subdistrict is a`Hazardous Substance Subdistrict. " The Snbdistrict is a IIazardons Substance Snbdistrict because the tiniversity AvenuetT.H. 280 site has been nsed for over 100 years by heavy indnstry including railroads, paint manufacturing, waste haulers, food processing and tank and drum recycters. As submitted in a Response Action Plan to the MPCA, the soil is heavily pollnted with contaminants such as polychlorinated biphenyls (PCB), polynuclear aromatic hydrocarbons and heavy metals. A portion of the sife falls within a Superfund site identified as the ADM/Hwy. 280 site. 2. Finding that the proposed development, in the opinion of the Port Aulhority, would not reasonably be expected to occur solely through privafe investment and tax increment otherwise available, and therefore the hazardous substance subdistrict is deemed necessary: The high cost of remediating the parcels included in the Hazardous Substance Subdistricf makes the cost of land acquisition and fmancing of the proposed improvements prohibitive to private developers without the assistance provided through the Hazardous Substan¢e Snbdistrict. This finding is based upon evidence from general past experience with the high cost of providing public improvements in the general area of the District. 3. Finding that other parcels that are not designated hazardous substance sites are ecpected to be developed togefher with ihis designated hazardous substance site: The Subdistrict is within the Westgate Office Industrial Park. The proposed development wonld complete the final phase of the park. 4. Finding that the subdistrict is not larger than, and the period of time during which increments are eZected to be received is not longer than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site. The duration of the Subdistriet will run the lesser of 25 years or the period of time necessary to reeover tHe cost of the removal and/or remediation actions specified in the Response Action Plan. It is anticipated that the cost of the removal and/or remediation actions specified in the Response Action Plan will be $2,400,000, and that only a porEion of this amount, $150,000, will be recovered through the Hazardous Substance Subdistrict in approximately 25 years, based on current tax law. zosstio�i q b1-4o4, The modification to the University Avenue/T.H. 280 Tag Increment Rinaneing Pian to include a Hazardous Substance Subdistrict has been reviewed by the Port Authority and the Port Anthority hereby determines that the parcels included in the Hazardous Substance Subdistrict (which are the parcels included in the Response Action Plan) are not larger fhan neeessary, since onIy a smali poriion of the remediation costs will be recovered fhrongh fhe creation of the Hazardons Substance Snbdistrict 2oss� ta�� Council File # Green Sheet # Presented by Kathy Refeaed To , . n u. - RBSOLIITION ADOPTING THS MODIFICATIONS TO TEiE IINIVERSITY A / T.H. 280 TAX INCRSMBNT FINANCING PLAN TO CR&ATB A HAZARDOIIS SIIBSTANCS S ISTRICT IN THE IINIVERSITY AVENIIB j T.H. 280 TAX INCREMSNT FINANCING DSSTRICT BE IT RESOLVED by the City Council (the "Council") of the City Minnesota (the "City"), as follows: WHEREAS, On September 22, 1987, the Port AuChority of the Ci "POrt Authority") adopted its Resolution No. 2858, creating the Un 280 Tax Increment Financing District (the "District"), and, in co creation of the District, the Port Authority Board approved the plan relating thereto, all pursuant to and in accordance with M' n 469.�48 through 460.068, inclusive; and Minnesota Statues, Sec on 469.179, inclusive; and Saint Paul, �of Saint Pau1 (the ersity Avenue / T.H. ction with the increment financing ota Statutes, Sections 469.174 through WHEREAS, the Port Authority has been advised that cert in parcels within the District require environmental remediation before such parc ls can be developed, and, in an effort to further develop the District, the Port Autho ty has proposed the establishment of a Hazardous Substance Subdistrict wit 'n the District in accordance with Minnesota Statutes, Section 469.175, Subdivision 7; d WHEREAS, Port Authority management has pre ously prepared and submitted a Response Action Plan ("RAP") to the Minnesota Pollution ontrol Agency (the "MPCA"), as required by Minnesota Statutes, Section 469.174, Subdivis'on 17, and received the necessary approvals from the MPCA for the RAP in September, 200 , and WHEREAS, on February 27, 2�01, the oard of Commissioners of the Port Authority of the City of Saint Paul adopted its Res ution No. 3873 requesting that Port Authority management call for a public hearing o consider the modification of the University Avenue / T.H. 280 Tas Increment Financing istrict (the "District") to create a Hazardous Substance Subdistrict (the "Subdis rict"), authorizing Port Authority management Co finalize the tax increment finan ng plan related thereto (the "Modified Plan"), and directing Port Authority manage nt to submit the necessary notifications to the Ramsey County Auditor and the Clerk o the Saint Pau1 School Board; and *i�IAEREAS, Port Authorit management has transmitted the necessary notices and, following a public hearing n the Modified Plan held on April 24, 2001, adopted its Resolution No- appr inq the Modified Plan; and WHEREAS, Port Aut rity management has prepared a budget for the cost of removal and remediation action spec fied in the RAP, and the sources of funds to be used to accomplish the same, all of whic is set forth in the Modified Plan; and WHEREAS, in it Resolution No. the Port Authority has determined that: (a) development or rede elopment described in the Plan is not reasonably expected to occur solely through pri te investment and ta�c increment otherwise available, and therefore the hazardous substan subdistrict is deemed necessary; (b) other parcels that are not designated hazar ous substance sites are expected to be developed together with a designated haz dous substance site; and (c) the subdistrict is not larger than, and the period of tim .during which increments are elected to he received is not longer than, Chat which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazardous substance site, and �� tS ��a.+1 0� CITY OF SAINT PAUL, MINNESOl"A 14fi38.1 _ ��-�lo� WHEREAS, the City finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and supporting £acts £or each determination in writing, attached hereto and to the Port Authority's Resolution No. as Exhibit A. WHERF..AS, it has been represented to the City that the Port Authority has performed all actions required by law to be perEormed prior to the establishment of the District, including, but not limited to, notification of Ramsey County and School District No. 625 (which have taxing jusisdiction over the property included in the District), and the holding of a public hearing; and WHEREAS, the Port Authority has asked that the City Council of the City of Saint Paul approve the modification to the Ta�c Increment Financing Plan for the University Avenue/ T.H. 280 Tax Increment Financing District to create therein a Hazardous Substance Subdistrict pursuant to Minnesota Statutes, Section 469.175, Subdivision 7_ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 1. The Modified Plan and the creation of the IIniversity Avenue/ T.H 280 Hazardous Substance Subdistrict, as approved by the Port Authority Board of Commissioners, is hereby approved and adopted. 2. The City Council hereby recognizes and ratifies Port Authority actions relating to the establishment of the Hazardous Substance Subdistrict, specifically, the Port Authority compliance with all notice requirements and public hearing, which was held on April 24, 2001, at which time individuals present were given an opportunity to comment on the proposed Modified Plan. 3. The City Council has investigated the facts and hereby accepts and ratifies the Port Authority findings pursuant to Minnesota Statutes, Section 469.175, Subdivision 7, and set forth hereto as Exhibit A. Approved by the Board: April 24, 2001 14638.1.