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01-793Council File # d�� 7�3 Resolution # Green Sheet # L11,303 � S) Presented By Referred To Committee: Date RESOLUTION APPROVING THE AMENDMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 (NORTH QUADRANT) 5 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the 6 "City") as follows: 7 Section 1. Recitals 8 1.01. On June 23, 1999, the Housing and Redevelopment Authority of the City of 9 Saint Paul, Mivnesota (the "Authority") established the North Quadrant Redevelopment 10 Project Area (the "Redevelopment Project Area") and adopted a redevelopment plan therefor 11 (the "Redevelopment Plan"). 12 1.02. On August 9, 2000, the City Council approved the creation, within the 13 Redevelopment Project Area, of Taac Increment Financing District No. 1(North Quadrant) (the 14 "T� Increment District") and the adoption of a Ta7c Increment Financing Plan therefor (the 15 "Tax Increment Plan"), a11 pursuant to and in accordance with Minnesota Statutes, Secrion 16 469.174 through 469.179 (the "Tas Increment Act") and Laws of Minnesota 2000, Chapter 17 490, Article 11, Secrion 40 (the "Special Law"). 18 1.03. On October 25, 2000, the City Council approved an amendment to the T� 19 Increment Plan, to, among other things, authorize the issuance of bonded indebtedness. 20 1.04. The Authority has determined that it is necessary to amend the Tax Increment 21 Plan in connection with a second phase development, to add additional properiy to the Taa� 22 Increment District, to increase the authorized expenditures and to authorize additional bonded 23 indebtedness (the "Amended Plan"). The Authority has performed a11 actions required by law 24 to be performed prior to the amendment of the Tas Increment Plan, including, but not lnnited 25 to, notification of Ramsey County and Independent School District Number 625, which have 26 taxing jurisdiction over the properry included in the Tax Increment District, and has requested z7 that the City approve the Amended Plan following the holding of a public hearing upon 28 published and mailed notice as required by law. 29 Section 2. Findings for the Amendment of the Tas Increment Financing Plan. 30 2.01. The City Council hereby finds that the Tax Increment Plan for Tax Increment 31 Financing District No. 1(North Quadrant) as amended by the Second Amendment dated � 1`� 32 August 8, 2001 (the "Amended Plan") is intended and, in the judgment of the CiTy Council, its 33 effect will be, to cany out the objecrives of the Redevelopment Plan and to create an unpetus 34 for the construction in the City of affordable and mixed income housing, will increase 35 employment and otherwise promote certain public purposes and accomplish certain objectives 36 as specified in the Redevelopment Plan and Tax Increment Financing Plan, as amended. 37 2A2. The City Council hereby reaffirms its previous findings that TaY Increment 38 Financing District No. 1(North Quadrant), as enlazged by the Second Amendment dated 39 August 8, 2001, qualifies as an"housing district" within the meaning of the Tax Increment Act 4o and the Special Law for the following reasons: 41 The property to be included in the T� Increment Disirict is located in 42 the Northeast quadrant of the City, i.e. within the 15 acre site bounded 43 by Interstate 44 on the north and east, Jackson Street on the west and 44 Seventh Street on the south, together with the west side of Jackson 45 Street to midblock between Interstate 94 and South Street. 46 Twenty percent of the housing units the Tax Increment District will be 47 occupied by individuals whose family income is equal to or less than 50 48 percent of area median gross income and an additiona160 percent of the 49 units will be occupied by individuals whose family income is equal to or 50 less than 115 percent of area median gross income. Twenty percent of 51 the units in the Tas Increment District will not be subject to any income 52 limitations. 53 Family income means the median gross income for the City as 54 determined under section 42 of the Internal Revenue Code of 1986, as 55 amended. The income requirements will be satisfied if the sum of 56 qualified owner-occupied units and qualified residential rental units 57 equals the xequued total number of qualified units. Owner-occupied 58 units will initially be purchased and occupied by individuals whose 59 family income satisfies the income requirements. For residential rental 60 property, the income requirements apply for the duration of the Taz� 61 Increment District. 62 The fair mazket value of the improvements which aze conshucted in the 63 Tax Increment District for commercial uses or for uses other than 64 owner-occupied and rental mixed-income housing will not consist of 65 more than 20 percent of the total fair market value of the planned 66 improvements in the development plan or agreement. The fair mazket 67 value of the improvements will be determined using the cost of 68 conshuction, capitalized income, or other appropriate method of 69 estimating mazket value. 70 2.03. The City Council hereby reaffirms the following findings: �1 (a) The City Council fi.irther fmds that the proposed development, in the 72 opinion of the City Council, would not occur solely through private investment within �3 the reasonably foreseeable future and, therefore, the use of tax increment financing is 74 deemed necessary. The specific basis for such finding being: 75 The parcels on which the development will occur would not be Q�.'1'�3 76 developed in the reasonably foreseeable future becausethey 77 have been used for surface pazking, which use generates 78 significant income to the current owner of the properry 79 considering the owner's min;mal investment in the properry. 80 (b) The City Council fiuther finds that the Taac Increment Financing Plan, 81 as amended, conforms to the general plan for the development or redevelopment of the s2 City as a whole. The specific basis for such finding being: 83 The Tax Increment Financing Plan will generally compliment and serve 84 to unplement policies adopted in the City's comprehensive plan. The s5 development contemplated is in accordance with the e�sting zoning for 86 the property. 87 (c) The City Council fi�rther finds that the Tax Increment Financing Plan, 88 as amended, will afford masnnum opportunity consistent with the sound needs of the 89 City as a whole for the development of the T� Increment District by private 90 enterprise. The specific basis far such fmding being: 91 The proposed development to occur within the Ta�c Increment DisUrict is 92 housing. The development will increase needed affordable and mixed 93 income housing in the City and will increase the mazket valuation of the 94 City. 95 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, 96 Subdivision 3(2), the City Council hereby finds that the increased mazket value of the 97 property to be developed to the properiy added by the Second Amendment to the Tax 98 Increment District that could reasonably be expected to occur without the use of tax 99 increment financing is $-0- , which is less than the market value estimated to result 100 from the proposed development (i.e., $16,738,822) after subtracting the present value lol of the projected tax increments for the maximum duration of the Tax Increment District 102 (i.e., $2,242,119). In making these findings, the City Council has noted that the 103 property has been undeveloped for many yeazs and would likely remain so if taY 104 increment financing is not auailable. Thus, the use of tax increment financing will be a 105 positive net gain to the City, the School District, and the County, and the tax increment 106 assistance does not exceed the benefit which will be derived therefrom. 107 2.04. The provisions of this Section 2 aze hereby incorporated by reference into and l08 made a part of the Amended Plan. 109 Section 3. Approval of Amendment of the Tax Increment Financing Plan. 110 3.01. The Tax Increment Plan for Tax Increment Financing District No. 1(North 111 Quadrant) as amended by the Second Amendment dated August 8, 2001, is hereby approved 112 and the Amended Plan is hereby adopted. 113 3.02. The staff of the City, the staff of the Authority and the City's and Authority's I 14 advisors and legal counsel aze authorized and directed to proceed with the impiementation of 115 the Ta�c Increment District and the Amended Plan and for this purpose to negotiate, draft, 116 prepare and present to the Boazd of Commissioners of the Authority for its consideration all 117 fiirther plans, resolutions, documents and contracts necessary for this purpose. I 18 3.03. The staff of the Authority is hereby directed to file a copy of the Tax Increment i 19 Financing Plan, as amended, with the County Auditar of Ramsey County and to request the 0 �� '�' � 120 County Auditor to certify the original tax capacity of the property to be added to the Tax 121 Increment Financing District by the Second Amendment. Requested by Department of: Plannina & Economic Development 1 Adopted by Council: Date � a'D l�1 Adoption Certified by Council Secretary Form Approved by City Attorney �� Approved by Mayor for Submission to Council Approved by Mayor: Date __�� "/ ( (/�/ � � � T Rv. <��.il�%�I��I�/I'/� (�a!!� o � -1�3 DATE INI7NTm 7/19/O1 GREEN SHEET No 111303 :,.,,,, f BE OtJ COUNCIL AGENDA BV (DAlE) /�SSIGN August � xuresc w2 Public Hearing °O �" G oeoErz TOTAL # OF SIGNATURE PAGES �G ov.rt�o.�� -�+ arccauKa � OiYAiTd11E1'� ❑ tltYCIFPK ❑ F�wxw�smvrFSOac y ❑ tNnxo��mnrKCr¢ _ � rnvon �onwassr�wn �/ '/ � S- �� (CLIP ALL LOCATIONS FOR SICaNATURE) Resolution approving Amendment to Tax Increment Financing District No. 1(North Quadrant) PLANNING CAMMISSION CIB COMMITTEE CIVIL SERVICE COMMISSION Has this persoNfrm ever woilced untler a con6aU for fhis tlepartment? VES NO Has this pe�so�rm ever been a city empbY�7 VES NO Does this persaNfirm possess a sldll not nortnallyposses,aed by a�ry curtent cRy employee? VES NO Is this person/fiim a targeted vendoR YES NO ��ain an ves answere on seoarate sheet anA attach W areen sheet Expanding district to allow construction of 122 unit rental building and 38 for sale townhomes. AMOUNT OF TRANS.ACTION S —n— SOURCE INFORM4ilON (IXPLfJNj COST/REVENUEBUDGETED(CIRCLEONE) VES NO ACTNITY NUMBER ! � � � hs : J�L 2 �3 2D�1 o � -113 Interdepartmental Memorandum CTTY OF SAINT PAUL TO: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmembez Harris Councilmember Lantry Councilmember Reiter FROM: Brian Sweeney�/,�.....-,�- Allen Carlson � � DATE: July 18, 2001 RE: PUBLIC HEARING: RESOLUTION APPROVING THE SECOND AMENDMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTA QUADRANT) Purpose The purpose of this public hearing is to receive public comment and request the City Council to approve a resolution to amend the Tax Increment Financing Plan (the "Plan") and expand the tax increment financing district for the Tax Increment Pinancing District No. 1(North Quadrant) (the "District") originally adopted by the Housing and Redevelopment Authority of the City of Saint Paul on August 9, 2000. The original District boundaries are bounded by 7"' 8' Wacouta and Sibley Streets. The expanded area will include the block bounded by 8�`, 9 Temperance and Sibley Streets. Background The original District was adopted to allow taY increments to be generated to assist in the financing of a proposed ll4 mulfifamily rental building with 10,000 square feet of commercial space (the "Sibley Pazk Aparhnents") and a 38 unit for sale town home development (the "Essex on the Park"). Twenty-two percent of the rental units wiil be affordable to households at or below 30% of the area median income and 18% of the rental units will be affordable to households at or below 50% of the area median income. The District is being expanded to allow and assist with tas increment financing the construction � 1-'1q3 of 122-unit rental building (the " Sibley Court Apartments") and 38-unit for sale town home/condominium building (the "Dakota") (together the "Phase II Project"). The rental building will have 25 units with rents affordable to households at or below 30% of the azea median income and an additiona126 units with rents affordable to households at or below 50% of the azea median income. Affordable units for the Phase II Project account for 32% of the total units to be developed. The Phase II Project is a continuation of Sherman Associates, Inc. and the Lander Group's (the "Developer") Phase I Project, which currently under construction. Total estimated cost of the Phase II Project is $27.5 million of which the Developer is seeking an estimated $1.82 million of present value tax increment funds to assist in the construction of the structured underground pazking ramp. The Developer is also seeking low income housing taY credits to assist in the financing of the affordable rental housing units. No other City financing is being pledge to the project. Staff is proposing the following amendments to the Plan: Amend Subsection 9 of the Plan which states the proposed budget for the Plan. The budget is being amended to inciude increments that will be generated from the expanded district boundary, which increments will be used to pay administrative costs, the pazking ramp and interest resulting from the issuance of bonds andlor pay-as-you-go note. Amend Subsection 10 to allow up to $1 million of added bonded indebtedness to finance public costs related to the construction of the Dakota development. Amend Subsection 5 to include Phase II parcels into the District. The added area is bounded by 8�', 9"' , Temperance and Sibley Streets. Recommendation Staff recommends approval of the attached resolurion amending the Tax Increment Financing Plan for the Tax Increment Financing District No. 1(North Quadrant) and expanding its boundaries. Statement of the Council President Being duly authorized by the City Council to conduct this Public Hearing, the hearing is now open. This Public Heazing is called for the proposed purpose to consider the following: Second amendment of the Tax Increment Financing Plan for the Tax Increment Financing District No.l (North Quadrant). Notice of time, place, and purpose of this hearing was published in the Saint Paul Pioneer Press on Friday, July 20, 2001. The affidavit of the publication of the Notice of Public Hearing will be made a part of these proceedings. Is there anyone who wishes to be heazd on this item? If not, the Chair will declare this Public Hearing adjourned. o� -11� Attachments Resolution approving second amendment to the T� Increment Financing Plan for the T� Increment Financing District No. 1(North Quadrant) Second Amendment of the T� Increment Financing Plan for the Ta�c Increment Financing District No. 1(North Quadrant) K:\Shazed�Ped�CARLSOAP\sherma�\CC TIF AMEND2 RPT 102500.wpd o � -'113 TAX Ii�tCRE�tENT FNANCNG PLAN for the establishment of TAX INCREMENT FNANCING DISTRICT NO. 1(NORTH QUADRANT) (a housin� district) within the NORTH QUADRANT REDEVELOPMENT PROJECT AREA HOUSIl\TG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL RAMSEY COUNTY STATE OF MINNESOTA Adopted: August 9, 2000 Amended: October 25, 2000 Second Amendment: August 8, 2001 This document �vas drafted by: BRIGGS AND MORGAN (MMD) Professional Association 22�0 First National Bank Bld�. St. Paul, NIN 55101 (651)223-6625 u�szu�3 � � �� TABLE OF CO�iTE\TS (for reference purposes only) TAX IiVCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCNG DISTRICT Iv�O. 1(�IORTH QUADRANT) Subsection 1. Subsection 2. Subsection 3. Subsection 4. Subsection 5. Stibsection 6. Subsection 7. Subsection 8. Subsection 9. Subsection 10. Subsection 11. Subsection 12. Subsection 13. Subsection 14. Subsection 15. Subsection 16. Subsection 17. Subsection 18. Subsection 19. Subsection 20. Subsection 21. Subsection 22. Subsection 23. Subsection 24. Subsection 25. Subsection 26. Subsection 27. Subsection 28. Subsection 29. iz�szi i�s P_aae Fonvard; Background ...................................................................................... 1 StatutoryAuthority .......................................................................................... 1 Statement of Objectives ................................................................................... 1 Redevelopment Plan Overview ................................:....................................... 2 Parcels to be Included in Tax Increment Financing District No. 1 .................. 2 Parcelin Acquisition ........................................................................................ 3 Devetopment Activity in Tax Increment Financin� District No. 1 for which Contracts have been Signed .................................................................. 3 Other Specific Development Expected to Occur within Redevelopment Area.................................................................................................................. 4 Estimated Cost ofProject .................................................................................4 Estimated Amount of Bonded Indebtedness .................................................... 5 Sourcesof Revemie ..........................................................................................6 Estimated Captured Tax Capacity and Estimate of Tax Increment ................. 6 Type ofTax Increment Financing District .......................................................6 Duration of Tax Increment Financin� District .................................................7 Estimated Impact on Other Taxin� Jurisdictions .............................................7 State Taz Increment Financing Aid ................................................................. 8 Modification of Tax Increment Financin� District and(or Tax IncrementFinancing Plan ................................................................................ 8 Modifications to Tax Increment Financing District ......................................... 8 Administrative Expenses .................................................................................9 Limitation of Increment .................................................................................10 Use of Tax Increment ..................................................................................... l 1 Notification of Prior Planned Improvements ................................................. l l Excess Increments .................................................................................. Requirements for Agreements with the Developer ........................................12 Other Limitations on the Use of Tax Increment ............................................ i3 County Costs ........................................................................................ Assessment Agreements ................................................................................ Administration of the Tax Increment Financing District ...............................14 Financial Reporting Requirements ................................................................14 ii " o �-'1q� EXHIBIT A-1 - Map of Tax Increment District No. 1, as ori�inally adopted EXHIBIT A-2 - Map of Tax Increment District No. 1, as enlarged by Second Amendment EXHIBIT B- Map ofNorth Quadrant Redevelopment Project Area EXHIBIT C-1 - Projected Tax Increments from Phase 1 EaHIBIT G2 - Projected Tas Incremeuts from Phase 2 EXHIBIT D-1 - Estimated Impact on Other Taxin� Jurisdictions of Phase 1 EXHIBIT D-2 — Estimated Impact on Other Taxin� 7urisdictions of Phase 2 �2782��v3 111 Dl• TAX INCREMENT FNAiv'CING PLAivT FOR TAX INCREMENT FINAivTCING DISTRICT NO. 1(NORTH QUADRANT) Subsection 1. Fonvard: Backeround. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), and its staff and consultants have prepared the follo�vin� information for the establishment of Tax Increment Financin� District \�o. 1(North Quadrant), a housin� district (the "Tax Increment DistricP'). The Tas Increment District is located �vithin thz 1Vorth Quadrant Redevelopment Project Area (the "Redevelopment Project Area") established by the HRA pursuant to the North Quadrant Redevelopment Plan adopted by the HRA on June 23, 1999 (the "Redevelopment Plan"). The Redevelopment Plan was approved by the Planning Commission on June 23, 1999. The Tax Increment Financin� Plan was originally adopted on Au�ust 9, 2000, and was amended on October 25, 2000, to amon� other thin�s, authorize the issuance of bonded indebtedness. On August S, 2001, the HRA amended the Tax Inccement Financin� Plan in connection with a second phase of development, to add additional property to the Tax Increment Financin� District, to increase the authorized expenditures and to authorize additional bonded indebtedness. Subsection 2. Statutorv AuthoritY. There exist areas within the City of Saint Paul (the "City") where public involvement is necessary to cause development to occur. To this end, the HRA has certain statutory powers pursuant to special legislation (Laws of Minnesota, Chapter 490, Article 11, Section 40 (the "Special Law"), and Minnesota Statutes, Section 469.174 throu�h 469.179 (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to a project. Subsection 3. Statement of Objectives. The Tax Increment Financing District, as originally adopted, consists of 2 parcels of land and adjacent and internal rights-of-way. In connection �vith the second amendment, Z parcels were added to the Tax Increment Financin� District. A map showin� the boundaries of the Tax Increment District, as originatly adopted, is attached as Exhibit A-1. A map showin� the boundaries of the Tas Increment District, as expanded by the Second Amendment, is attached as Exhibit A-2. The Tax Increment Financin� District is bein� created to facilitate a 38 unit owner occupied to�cnhome development (the "Phase 1 Owner Occupied DevelopmenY') and a 114 unit rental apartment facility (the "Phase 1 Rental Development"). Phase 2 of the development is a 38 tmit owner occupied townhome development (the "Phase 2 Owner-Occupied DevelopmenY') and a 122 unit rental apartment facility (the "Phase 2 Rental Development"). The tax increment financin� plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the North Quadrant Redevelopment Project Area. The followin� are some of the objectives bein� facilitated by this Tax Increment Financin� Plan. A. Provide Affordable Hot�sine for Saint Paul Residents. i. Phase 1 De��elopment. The available housing in the downtown area of the city �vill expand by more than 152 units �vith the completion of the housin� development contempiated by this Tax Increment Financin� Plan. 22 of the units in the Phase 1 Owner- 127821Iv3 b � -'14� Occupied Development �vill be affordabte to households between 80% and 115% of area median income. A sufficient number of units in the Phase 1 Rental Development �vill be affordable to low and moderate income persons such that the requirements of the Special La�v are met. 2. Phase 2 Develoqment. The available housin� in the do�vntown area of the City �vill expand by more than 160 units with the completion of the Phase 2 Development. A sufficient number of units in Phase 2 will be affordable to ]ow and moderate income persons such that the requirements of the Specia] Law are met. B. To Redevelop Underused Propertv. The Tax Increment District is a site that has been underutilized for many years. The majority of the area comprisin� the site has been used for surface parking. New commercial, cultural and recreational investments are jeopardized by lack of development in the downtown area. In order to protect past investments and encoura�e new development in the downtown area new housin� development needs to be created to encoura�e additional private investment. C. Expand the Tax Base of the Citv of Saint Paul. It is expected that the taxable market value of parcels in the Tax Increment District will increase by approximately $21,280,000 and $16,738,822 as a result of the Phase 1 Development and Phase 2 Development, respectively. The activities contemplated in the Redevelopment Plan and this Tax Increment Financin� Plan do not preclude the undertakin� of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Tax Increment District and the Redevelopment Project. Subsection 4. Redevelopment Plan Overview. Property to be Acquired - Selected propeRy located within Tax Increment Financin� District or Redevelopment Project Area may be acquired by the HRA. 2. Relocation - if necessary, complete relocation services are a�•ailable pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to a development and completion of the necessary legal requirements, the HRA may sell or assist a developer with the cost of selected properties within Tax Increment Financin� District or Redevelopment Project Area, or may lease land or facilities to a developer. Subsection 5. Parcels to be Included in Tax Increment Financine District No. 1. The following parcels located in the City of Saint Paul, Ramsey County, Minnesota: tz�xzii�s o � -�» A. Phase 1 Development. PN NO. 312922440028 312922440029 B. Phase 2 Development. PN NO. 3129224�0009 312922440003 ADDRESS 221 7` Street East 440 Sibley Street ADDRESS 205 Eighth Street East 194 Ninth Street East FURTHER INFORMATION REGARDNG THE IDENTIFICATION OF THE PARCEL TO BE INCLUDED IN TAX 1NCREMENT FINANCNG DISTRICT NO. 1 CAN BE OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA. Subsection 6. Parcel in Acquisition. The HRA may finance all or a part of the costs of acquisition of the parcels identified in Section 5 of this Tax Increment Financin� Pian. The following are conditions under which properties not designated to be acquired may be acquired at a fiihire date: (1) The HRA may acquire propeRy by gift, dedication, condemnation or direct purchase from �villing sellers in order to achieve the ob,}ectives of the tax increment financing plan; and (2) Such acquisitions will be undertaken only when there is assurance of funding to Finance the acquisition and related costs. Subsection 7. Development Activitv in Tax Increment Financin� District No. I for which Contracts have been SiQned. The following contracts have been or will be entered into by the HRA and the persons named below: Phase 1 Development: No development a�reements have been entered into at the time the Tax Increment Financing Plan �vas originally adopted. However, the HRA anticipates enterin� into a devetopment agreement with an entity to be formed by Sherman Associates, Inc. and The Lander Group (the "Developer") with respect to the development of a 38 unit owner occupied townhome development and a 114 unit rental apartment facility. Phase 2 Devetopment: No development a�reements have been entered into at the time the Second Amendment was adopted. However, the HRA anticipates entering into a iz�szi i�3 O �-1g3 development agreement �cith an entity to be formed by Sherman Associates, Inc. and The Lander Group (the "Developer") with respect to the development of a 38 unit owner occupied totivnhome development and a 122 unit rental apartment facility. Subsection 8. Other Specific Development Expected to Occur within Redevelooment Area. Although no specific additional developments have been identified at this time, the HRA expects that the acquisition and construction of the above housing development will encoura�e additional development in the Redevelopment Project Area. Subsection 9. Estimated Cost of Proiect. The HRA has determined that it will be necessary to provide assistance for certain public costs of certain housin� activities. To facilitate thz development of the Tax Increment Financing District, this Tax Increment Financing Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Tax Increment Financin� District is otttfined in thz followin� table: PROJECTED SOURCES PHASE ONE PHASE TWO TOTAL OFFCiNDS Ownership Rental Ownership Rental SOURCES TaxInerementRevenue 3,731,000 6,080,000 1,852,8t7 3,031,755 14,695,572 TIF Bond Proceeds 1,283,000 701,893 1,984,000 Issuer Bond Equity 36,000 36,000 Metropotitan Council Grant 450,000 450,000 Metropalitan Council Loan 500,000 500,000 HRA Enterprise Fund Loan 250,000 250,000 Federal HOME Loan 750,000 750,000 750,000 TOTALREVENUE $S,SOQ000 $7,580,000 $2,553,817 $3,031,755 $18,665,572 1278?IIv3 o � -'1 �� PROJECTED USES OF pHASE ONE PHASE TWO TOTAL FUNDS Ownership Rental Ownership Rental USES Site 300,000 84Q000 1,14Q000 Improvements/preparation costs Parkingfacilities 95Q000 1,600,000 666,000 953,98t 4,169,981 Bond principal payments 1,283,000 701,000 1,984,000 Bond interest payments 2,136,000 886,659 3,022,659 Pay-as-you-go interest 3,300,000 1,763,006 5,063,006 Cost of Issuance 36,000 35,000 35,000 Administrative 345,000 34Q000 265,158 314,768 1,264,926 TOTAL EXPENSES $5,500,000 $7,580,000 $2,553,817 $3,031,755 $18,665,572 Estimated costs associated «�ith Tax Increment Financin� District are subject to changz and may be reallocated between line items by the HRA. The cost of all activities to be financed by the tax increment will not exceed, without formal modification, the budget for the tax increments set forth above. Subsection 10. Estimated Amoimt of Bonded Indebtedness. The HRA may issue its tax increment revenue bonds in an amount not to exceed $1,283,000 to finance public costs of the �vszii�; p ► -1°t3 Phase 1 O«�ner Occupied Development and 51,000,000 to finance the public costs of the Phase 2 Owner Occupied Development. A porcion of the public costs may be financed on a pay-as-you- �o basis iF and to the extent a por[ion of the proceeds of the revenue bonds are applied to the extra ordinary redemption of the bonds. The expenditures authorized by this Tax Increment Financin� Plan for the Rental Development will be paid for on a pay-as-you-�o basis. Subsection 1 l. Sources of Revenue. The costs outlined in Section 9 above «�ill be fi��anced through the annual collection of tax increments, and the ]oans or grants given by or throu�h the City or HRA as set forth above. The total cost of thz Phase 1 Rental Development and Phase 2 Rental Development are estimated to be approximately S 17,000,000, and S 18,180,000 respectively. The total cost of the Phase 1 Owner Occupied Dzvelopment and the Phase 2 Owner Occupied Development are estimated to be approximately 59,500,000 and S 10,792,000 respectively. Additional sources of funds for the Phase 1 Rental Development will be assistance directly from the Minnesota Housin� Financing Agency in the amount of 5700,000 and from the Family Housin� Fund in the amount of �150,000. The Developer will receive a�450,000 grant directly from the Minnesota Housin� Financing Agency for the Phase 1 Owner Occupied Development. The Developer will contribute equity or obtain private financin� for the remaining costs of the Developments. Subsection 12.Estimated Captured Tar Capacit�nd Estimate ofTax Increment. The most recent tar capacity of Tac Increment Financing District is estimated to be $10,577 as of January 2, 1999. In connection with the additional property added to the Tax Increment Financin� District by the Second Amendment, the most recent tax capacity is 58,812. The estimated captured tax capacities of Tax Increment Financin� District at completion of Phase 1 Development and Phase 2 Development is estimated to be �254,812 and �179,400, respectively. The HRA elects to retain all of the captured tax capacity to finance the costs of Tax Increment Financing District No. 1. The HRA elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, subd. 3(a). Subsection 13. Tvpe of Tar Increment FinancinQ District. Tax Increment Financin� District I�'o. 1 is a housing district established, pursuant to Minnesota Statutes, Section 469.174, Subd. 10, and the Special Law, and �vill satisfy the requirements described belo�v. The Tax Increment Financin� District consists of a project, or a portion of a project, intended for occupancy, in part, by persons of low and moderate income as defined in Minnesota S[atutes, Chapter 462A, Title II, of the National Housing Act of 1934; the National Housin� Act of 19>9; the United States Housin� Act of 1937, as amended; Title V of the Housin� Act of 1949, as amended; any other similar present or fiiture federal, state, or municipal legislation, or the regulations promulgated under any of those acts. Twenty percent of the units in the development in the Tax Increment District must be occupied by individuals �vhose family income is equal to or less than 50 percent of area median gross income and an additiona160 percent of the units in the development in the Tax Increment District must be occupied by iz�xz<<�3 6 - 0 t -'117 individuals whose family income is equal to or less than 115 percent of area median gross income. Twenty percent of the units in the development in the Tax Increment District are not subject to any income limita[ions. Family income means the median gross income for the area as detemtined under section 42 of the Intemal Revenue Code of 1986, as amended. The income requirements are deemed to be satisfied if the sum of qualified otivner-occupied units and qualified residential rental units equals the required total number of qualified units. Owner- occupied units must be initially purchased and occupied by individuals whose family income satisfies the income requirements of this subdivision. For residentia] rental propzrty, the income requirzments of this subdivision apply for the duration of the Tax Increment District. The development in the Tax Increment District does not qualify if the fair market value of the improvements �vhich are constructed for commercial uses or for uses other than owner- occupied and rental mixed-income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or a�reement. The fair market value of the improvements may be determined usin� the cost of construction, capitalized income, or other appropriate method of estimatin� matket value. In establishin� Tax Increment Financin� District, the determination has been made that the anticipated development would not be reasonably expected to occur solely throu�h private investment within the reasonably foreseeable future and that therefore the use of tax increment Cinancin� is deemed necessary. In makin� this determination the HRA has relied on its own knowled�e of the development history of the area and on representations madz by the Developer. The HRA and the City have detemiined that the proposed development of the Tas Increment District would not reasonably be expected to occur solely throu�h private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financin� would be less than [he increase in the market value estimated to result from the proposed development after subtractin� the present value of the projected tax increments for the maximum duration of the district permitted by the plan. Subsection 14. Duration of Tas Increment Financin� District. The duration of Tax Increment Financing District will be 25 years from the receipt of the first tax increment. The date of receipt of the first tax increment is expected to be July of 2002. Attached as Exhibit C-1 is the projected receipt of tax increments from the Phase 1 Development in the Tax Increment Financing District. Attached as Exhibit C-2 is the projected receipt of tas increments from the Phase 2 Development in the Tas Increment District. Subsection I5. Estimated Impact on Other Taxina Jurisdictior�s. The estimated impact of Tax Incrzment Financing District on the other taxin�jurisdictions assumes construction �vould have occurred without the creation of Tax Increment Financing District. If the construction is a result o€ tax increment financin„ the impact is $0 to other entities. Norivithstandin� the fact that the fiscal impact of the other tasin� jurisdictions is $0, due to the fact that the construction would not have occurred without the assistance of the HRA, the estimated impact of Tas Increment Financin� District would be as set forth on Exhibit D if the "but for" test «as not met. 127821Iv3 0�-�1 Subsection 16. State Tax Increment Financina Aid. Pursuant to Minnesota Statutes, Section 273.1599, for tax increment financin� districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financin� aid (RISTIFA) applied to the municipality's Local Go�•emment Aids (LGA) first and, Homestead and A�ricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifyin� captured tax capacity (QCTC) ofTax Increment Financin� District. Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6, the HRA may choose an option to the LGA-HACA penalty, Ta� Increment Financin� District is exempt from the LGA- HACA reduction if the HRA elects to make a qualifying local contribution at the [ime of approving the Plan. To qualify for the exemption in each year, the HRA must make a qualifyin� local contribution to the project of a certain percentage. The local contribution for a housing district is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the HRA must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the HRA or the City, such as the general fund, a property tax levy, or a federal or state grand-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, �vith tas increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general govemment purposes. Tlie HRA elects to make the annual loca] contribution to the project to exempt itself from the LGA-HACA penalty. The HRA will pay for costs of the project described in this Plan, in an amount equal to 5 percent of anmial tax increment for Tax Increment Financing District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development. The contribution may also be made in the form of public improvement financed by the City or other unit of govemment with unrestricted funds. Subsection 17.Modification of Tax Increment Financin� Distric[ and/or Tax Increment Financin� Plan. As of Au�ust 9, 2000, no modifications to Tax Increment Financin� District No. 1 or the Tax Increment Financin� Plan therefore have been made. On October 25, 2000, the Tax Increment Financing Plan �vas amended and restated as set forth herein. Subsection 18.Modifications to Tax Increment Financine District. In accordance �vith Minnesota Statutes, Section 469. 175, Subd. 4, any: reduction or enlargement of the geographic area of the Tax Increment Financing District; increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination �vas not a part of the ori?inal plan, or to increase or decrease the amount of interest on the debt to be capitalized; (?78?IIv3 0�=�q7 3. increase in the poRion of the captured net tax capacity to be retained by the HRA; 4. increase in total estimated tax increment expenditures; or desi�nation of additional property to be acquired by the HRA, shall be approved upon the notice and after the discussion, public hearing and findin�s required for approval of the original plan. The geo�raphic area of District may be reduced, but shall not be enlarged after five years followin� the date of certification of the original net tax capacity by the county auditor. The requirements of this para�raph do not apply if (1) the only modification is elimination of parcel(s) from Tax Increment Financin� District and (2)(A) the cunent net tax capacity of the parcel(s) eliminated from the Tax Increment Financin� District equals or esceeds the net tax capacity of those parcel(s) in the Tax Increment Financin� DistricYs original net tax capacity or (B) the HRA agrees that, notwithstandin� Minnesota Statutes, Section 469. 177, Subd. 1, the ori�inal net tax capacity �vill be reduced by no more than the cunent net tas capacity of the parcel(s) eliminated from the Tar Increment Financing District. The HRA must notify the County Auditor of any modification that reduces or enlarges the gzo�raphic area of the Tax Increment Financing District or the Redevelopment Project Area. Modifications to Tax Increment Financin; District in the form of a budget modification or an expansion of the boundaries �vill be recorded in the Tax Increment Financin� Pian. Subsection 19.AdministrativeExoenses. In accordance with Minnesota Statutes, Section 469.174, Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3, administrative expenses means all expenditures of the HRA, other than: amounts paid for the purchase of land or amounts paid to coniractors or others providing materials and services, including archiEectural and engineering services, directly connected with the physical development of the real property in the district; . relocation benefits paid to or services provided for persons residin� 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 Minnesota Statutes, Section 469.178. Administrative expenses also include amounts paid for services proti�ided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any atithorized and documented administrative expenses for the Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total taY increment expenditures, �vhichever is less. �z�szi�,s o�-1q3 Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, tax increments may be used to pay for tlte county's actual administrative expenses incurred in connection with the Tax Increment Financin� District. The county may require payment o£those expenses by February li of the year followin� the year the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the HRA and the county treasurer shall pay the amotmt deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for tlie cost of financial reportin� of tax increinent financin� information and the cost of examinin� and auditing authorities' use of tax increment financing. Subsection 20. Limitation of Increment Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no tax incrzment shall be paid to the HRA for the TaY Increment Financin� District after three (3) years from the date of certification of the Ori�inal Net Tax Capacity value of the taxable property in the Tax Increment Financin� District by the County Auditor unless within the three (3) year period: (a) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 to 469.165, or (b) the HRA has acquired property within the Tax Increment Financing District, or (c) the HRA has constructed or caused to be constructed public improvements w�ithin the Tax Increment Financin� District. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fimd or other escrow account held in trust for alt outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to Mianesota Statutes, Section 469.176, Subd. 6: if after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service includin� sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance �vith the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the oi�•ner of [he parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel includin� qualified improvement of a street adjacent to that parcel, in accordance with the tas increment financin� plan, the i?�az i i �-� 10 a �-'�q3 authority shall certi fy to the county auditor that [he activity has commenced and the county auditor shall certify the net tas capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financin� district. The county auditor must enforce the provisions of this subdivision. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or openin� of a new street, (2) re;ocation of a street, and (3) substantial reconstruction or rebuildin� of an existing street. Subsection 21. Use of Tax Increment. The HRA hereby detern�ines that it �vill use 100 percent of the captured net tax capacity of taxable property located in the Tax Increment Financing District for the followin� purposes: to pay the principal of and interest on bonds used [o finance a project; 2. to finance, or othenvise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 4b9.134; 3. to pay for project costs as identified in the bud�et; 4. to finance, or otheRVise pay for other pucposes as provided in Minnesota Statutes, Section 469.1 76, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to the HRA or for the benefit of Redevelopment Project Area by the developer; 6. to finance or othenvise pay premiums and other costs for insurance, credit enhancement, or other security guaranteein� the payment when due of principal and interest on taY increment bonds or bonds issued pursuant to the Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both; and to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicablz to the HRA nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4. Subsection 22.Notification of Prior Planned Lnqrovements. The HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of the Tax Increment Financing District enlar�ement with a listin� of all properties within the TaY Increment Financing District or area of enlargement for �vhich building permits ha�•e been issued during the eighteen (18) months immediately preceding iz7szii�3 11 4 1—'1�3 approval of the Plan by the municipality pursuant to Minnesota Statutes, Section 4G9.175, Subd. 3. The County Auditor shall increase the original value of the Tax Tncrement Financin� District by the value of improvements for �vhich a buildin� permit was issued. Pursuant to NlinnesoFa Statutes, Section 469.177, Subd. 4, the HRA has reciewed the area to be included in the Tas Increment Financing District and found no parcels for �vhich building permits have been issued during the 18 months immediately� preceding approval of the Plan by the HRA. Subsection 23. Excess Tax Increments. Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in �vhich the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess amount to do any of the following: prepay any outstandin� bonds; 2. discharge the pled�e of tax increment therefor; 3. pay inro an escrow account dedicated to the payment of such bond; or 4. retum the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Tax Increment Financin� District or Redevelopment Project Area. Subsection 24. Requirements for Aareements with the Developer. The HRA �vill review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable mu�icipal ordinances and codes. To facilitate this effoR, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawin�s, landscapin� plan, grading and storm draina�e plan, si�nage system plan, and any other drawin�s or narrative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. The HRA may also use the Agreements to address other issues related to the development. Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no more than 10 percent, by acrea�e, of the property to be acquired in the Tax Increment Financin� District as set forth in the Plan shall at any time be o«•ned by the HRA as a result of acquisition with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469. 178, without the HRA havin„ prior to acquisition in excess of 10 percent of the acrea�e, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA should the development or redevelopment not be completed. I?73? I I v3 1 � o � •'1q3 Subsection 2�. Other Limitations on the Use of Tax Increment General Limitations All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or othenvise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 469.134; These revenues shali not be used to circumvent existing levy limit law. No revenues derived fi tax increment sl�alt be used for the acquisition, construction, renovation, operation or maintenance of a building to be used primarily and re�ularly for conductin� the business of a municipality, county, school district, or any other local unit of govemment or the state or federal govemment, or for a commons area used as a public park, or a facility used for social, recreation or conference purposes. This provision shall not prohibit the use of revenues derived from tax incremznts for the construction or renovation of a parkin� stn�cture. 2. Pooline Limitations. At least 80 percent of tax increments from the Tax Incremznt Financing District must be expended on activities in the Tax Increment Financing District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities �vithin said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or othenvise, on activities outside of the Tax Increment Financing District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applyin� this restriction, all administrative expenses must be treated as if they �vere solely for activities outside of the Tax Increment Financing District. Five Year Limitation on Commitment of Tax Increments Tax increments derived from the Tax Increment Financing District shall be deemed to have satisfied the 80 percent test set forth in para�raph (2) above only if the five year rule set forth in Minnesota Statutes, Section 469. 1763, Subd. 3, has been satisfied; and beginning with the sixth year followin� certification of the Tax Increment Financin� District, 80 percent of said tax increments that remain afrer expenditures permitted under said five year rule must be used only to pay previously commitment expenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section 469.1763, Subd. 5. 4. Expenditures Outside District. The Authority hereby elects to spend an additional ten percent of the tax increments on activities located outside the Tax Increment District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d) provided that the expenditures meet the followin� requirements: (i) they are used exclusively to assist housing that meets the requirements for a qualified low-income buildin� as defined in Section 42 of the Intemal Revenue Code of 1986, as amended (the "Code"); inaai i�a 13 d � -'113 (2) they do not exceed the qualified basis of housin� as defined under Section 42(c) of the Code less the amount of any credit allowed under Section 42 of the Code, and (3) They are used to (i) acquire and prepare the site for housing, (ii) acquire, construct or rehabilitate the housing or (iii) make public improvements directly related to the housin�. Subszction 26. Countv Road Costs Pursuant to Minnesota Statutes, Section 469. 17�, Subd. la, the county board may require the HRA to pay for all or part of the cost of county road improvements if, the proposed development to be assisted by tax increment �vill, in the judgement of the county, substantially increase the use of county roads requirin� constniction of road improvements or other road costs and if thz road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the HRA and consultants, the proposed development outlined in this Plan �vill have little or no impact upon county roads. If Ihe county elects to use inerzments to improve county roads, it must notify the HRA within thirty days of receipt of this Plan. Subsection 27. Assessment Aereements Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an a�reement in recordable form with the developer ofpropercy �vithin the Tax Increment Financin� District which establishes a minimum market value of the land and completed improvements for the duration of the Tax Tncrement Financin� District. The assessment agreement shall be presented to the assessor who shall revie�v the plans and specifications for the improvements constructed, review the market value previously assi�ned to the land upon which the improvements ace to be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certi£y the minimum market value agreement. Subsection 28. Administration of the Tax Increment Financin� District. Administration of the Tas Tncrement Financin� District will be handled by the Executive Director of the HRA. Subsection 29. Financial ReportinQ Requirements. The HRA will comply �vith all reportin� requirements of Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a. ia7szii�s 14 0�-'1q3 E\Iti13t[ .�-i . .(. '1 .i•J � � L � � � � ._ � � � V ..... L � � .... 0 � � F"` � � \ � � � �, w . , C1TY/Ca1NTY C�£DIT UNION I EMBASSY SUITES F�TEL � � E. � SQUARE "'� � .. •. MINN. JTU.+Z LIfE \CENSER �_ �; t�)': �dC ] � � 1 �� - -•---- � •-- F£PRS PAR1C GALTIER PLAZA BIDG. _ �•�� FIRST o TR'JST c� CEHf ER � EXHIBIT A-2 _.. „ „ „ ' � U ' r �;;��: : �� , FIRST BAPTIST � CFiURCH ' SCr. I I , : �-� . . [T ..� \ ". ;�;��;{ � wacoute� $7, f{ARY'S � Commons Park CAT UC �� :.� . E. 8lh ST. TIF Dlslrid No. 1 (NoRh Quadrant) � �� ' � � ��l Sc'. J o � �:' E.� �e, sr: FfR]TPGE � }4lUSE � PARX �T � LdrFRTOVN � u1[N G SQIY'n'£ EQlSQFS$ BLDG �� S A.DG I I I I �� I -<'� E. 6th : _-rr--rrrz .�.�. . .' �' '.': .'.' '.' �p.... . . 9.p. ...• .�.�. �:�.�.� �'. _.......•.. 1 �� .�`a-.1 �� c o � -1't� � � \ � �`e Q� � J � � � �L�_ � � � — V O y � n ST. �- TF£ P KSIIE � � � � - 4�.� � �� E. tOth 57. EXHIBIT B � � � � �., ��s.":.�� ..�.�.�...�_. . .�ro��t�1 Ql�r�c��a�it �. � � EXHIBIT C-1 �� 1q � Assum tions Re ort City of St. Paui, Hiinnesota Proposed Tax Increment (Redevelopment) Financing Distric[ North Quadrant (Sibley Park) Housing Development Scenario A- Phase One Totai Project (26 years, 8% note) Type of Tax Increment Financing District Maximum Duration of TIF District Certification Request Date Decertification Date Base Estimated Market Value Times: First SO Excess Original Net Tax Capacity (1) Rzdavelopment 25 years from tst increment 09/07/00 72/O7/27 (26 Years of Increment) 2000/2001 $683,500 0 0 y 7 0,577 AssessmenVCollection Year Base Estimated Market Value Increase in Estimated Market Value (1) Total Estimated Market Vaiue Times: First SO Excess Total Net Tax Capacity (t) Base Inflation Factor Locai Tax Capacity Rate F�scai Disparilies Coniribution From TlF DisSrict Administrativ= Retainage Percent (maximum = 70°�6) Poohng Percent City Tax Rate (Oniy if Local-Effort TIF) 6onds 8onds Dat°d Fust interest Date Underoiriters Discaunt 0.0090 0.00°0 2001/2002 200212003 2003/2004 200A/2005 5683,500 5683,500 5683,500 5683,500 2,000,000 15,065,744 15,065,744 15,065,744 $2,683,500 515,7A9,244 515,749,244 515,749,244 0.00% 0 0 0 0 0.00% 0 0 0 0 NA NA NA LGA/HACA Loss: Will Annual Local Contribution Be Made (Yes or No)? (2) I.S.D �525 Equalized Tax Capacity Rate I.S.D k625 Sa!es Ratio City Szl=s Rztio & Taxable Net Tax Capacity Preseni Valu? Date & Rate NA 748.553% (Payablz 2000) 0.0000 f {NA for Housing) 10.00% 0.00% NA Note (Pav-As-You-Go) Note Dated 09.'Ot/00 Note Rate 8.00% Yes NA NA NA NA 09/Q7l00 5.00% (i) See `Schedule of Project Values' tor caicutation of Market Values and Net Tax Capaci6es. (2) Assumes annual contribution will be madz upfront and will not be available (or debt service. S4t,527 5265,389 5265,389 5265,389 Preoa2d bv: S�rirgsted Incorporated (printed on 06/28/2000 at 321 PM) Tif062c=_.xls d�-193 Market Value Anaiysis Report City ot St. Paul, h7innesota Proposed Tax Increment (Redevelopment) Financing District North Quadrant (Sibiey Park) Housing Development Scenario A- Phase One Total Project (26 years, B% note) Assumotions Present Vai�a Date P.V. Rate - Gross T.1. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotai Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 22 23 24 25 26 09l0 7 /00 8.00%, 5 7 5,065,744 3,481,295 511,584,449 0 $11,584,449 Annual Present GrossTax Value � Year l�creme�t SA�%, 2002 45,977 39,766 2003 378,531 298,569 2004 378,531 276,453 2005 378.53? 255,975 2006 378,531 237,014 2007 378,531 279,457 2008 378.531 203,207 2009 378,531 188,149 2010 378,531 174,212 2011 378,531 161,308 2012 378,531 749,359 2073 378,531 138,295 2014 378,531 128,051 2015 378,531 178,566 2016 378,531 109,783 2077 378,531 701,657 2018 378.531 93.727 2019 378,531 87,149 2020 378,531 80,694 2021 378,537 74,717 2022 378,531 69,182 2023 378,531 64,057 2024 378,531 59.312 2025 378,531 54,919 2026 378,531 50,857 2027 378,531 47,084 59,509,252 53,481,295 Prepared by: Springsted Incorporated (06/28/2000) c 0 c i� �� , t N� ti N N N N N N C' �� t� t�.� 4[�.� Cl. c3 �7 � 4� P N �' N N N� c, c.� �3c3e=c3e7cl cl � F�.. � p u c3��;ot��,��N=o�°°��a�aa� N N N y'+ N f� I�: N N N I� � c N N N N C C� N G'. 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O.:C DJO C00 OOB 0:: F3.TEJ3:1 SS.Q:1;J.1� 5!.EOO,•9oL• 253tl.'Gl?i 5d't:Y,9• F.a�::TUhcamr: V?. i Ta�l Nn ae•�kMi SJ 2�731i 00 loan B�L�_ Cvlv>rc�a.3 � �t5!K Li : zss.s:s... tYl: .. °t :_� ,.: . :?? EEi "_ ].]2?.�F'. 3: : T� i1: 41 - lil.:._ 4 ::3i.J�: f5 ],L'.i,1'053 :�C�C.1�:.1'� � 4'7.++3 C< 3 i21^.` t :0 � `..0.[W CO O.SO:.CL'..CO p,'C].iC3_3 ] G1 <�?.10 . �.? 9:1 � 3 rz.��, _. . _.:.2P... i Y3.!« C'1 o :�a.cca as ?']� 45]?- :n. ';z ] Ci3 7d:.s0 29)S.Tt]YJ :;9f3,5))..S :,Fi'.1ss.91 i d11315:• �.]JT,1)� �3 T.G�t +;L23 z5] :.49.•3 :.1: ..._. ..'aiJ, :� j=1 : .>d ? 371. :i :d . 21?.'J'i.'_.�. z.•m.:azw . :.,.r=.:o i=3 LS f C- ',d'.C.Y6 SS 1.4a7.5'07T t ,'.�.C.5/J.St t.5}.9'e.T: 1!i'..� '" t ,:3�'0?: 9> 1.17:.5:2.SJ ..�� i�.l e,e; _... C_: _3:: ,=5.1.3 .. ::t:7."'c_ i�=.�a� c �; 7 G: C.Ca O' �� `V hcaioa oY Sca�,:,ica irA.o'ttn: Y or.OS*,"-„7.D: >, �:GS PYj Tfi'lt: ra a t •' �x Hi�3t � c--Z Assum tions Re ort City of St. Paul, Minnesota Proposed Tax Increment (Housing) Financing District North Quadrant Phase Two Scenario A- Phase Two Total Project (25 years, 8% note) Type of Tax Increment Financing District Ma�imum Duration of TIF District Certifiqtion Request Date Decertification Date Base Estimated Market Value Times: First $0 Excess Onginat Net Tax Capacity (1) Base Estimated Market Value Increase in Estimated Market Value (1) Total Estimated Market Value Times: First $0 Excess Total Net Tax Capacity (1) Base Inflation Factor Local Tax Capacity Rate Fiscal Disparities Contribution From TIF District Adminishative Retainage Percent (maximum = 10%) Pooling Percent City Tax Rate (Only if Local-Effort TIF) Bonds Bonds Dated First Interest Date Underwriters Discount 0.00% 0.00% Redevelopment 25 years from 'ISt increment 08/01/01 12/01/27 (25 Years of Increment) 2001/2002 $806,000 0 0 $9,334 AssessmenUCollection Year 2002/2003 2003/2004 2004/2005 2005/2006 $806,000 $806,000 $806,000 $806,000 2,000,000 16,738,522 16,738,822 16,738, 822 $2,806,000 $17,544,822 $17,544,822 $17,544,822 0.00% 0 0 0 0 0.00% 0 0 0 0 NA 123.330% (Est Pay 2002) 0.0000% (NA for Housing) 10.00% 0.00% NA Note (PaV-As-YOU-Gol NA Note Dated 08/0'IlO� NA Note Rate 8.00% NA LGPJHACA Loss: Will Annual Local Contribution Be Made (Yes or No)? NA I.S.D #625 Equalized Tax Capacity Rate NA I.S.D #625 Sales Ratio NA City Sales Ratio & Taxable Net Tax Capacity NA NA Present Value Date & Rate 08/01/01 5.00% (1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities. $32,495 $197,076 $197,076 $197,076 Prepared by: Springsted Incorporated (printed on 07/18/2001 at 323 PM) Phase 2 071801a.xls o � -' Market Value Analysis Report City of St. Paul, Minnesota Proposed Tau Increment (Housing) Financing District North Quadrant Phase Two Scenario A- Phase Two Total Project (25 years, 8°/, noYe) Assumotions Present Value Date P.V. Rate - Gross T.I. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 22 23 24 25 26 08/01/01 8.00% $16,738.822 2,087,603 $14,651,219 0 $14,651,219 Annual Present Gross Tax Value @ Year Increment 8.00% 2003 28,564 24,177 2004 231,542 181,463 2005 231,542 168,021 2006 231,542 155,575 2007 231,542 144,051 2008 231,542 133,381 2009 231,542 123,501 2010 231,542 114,352 2011 231,542 105,882 2012 231,542 98,039 2013 231,542 90,777 2014 231,542 84,052 2015 231,542 77,826 2016 231,542 72,061 2017 231,542 66,724 2018 231,542 61.781 2019 231,542 57,205 2020 231,542 52,967 2021 231,542 49,044 2022 231,542 45,411 2023 231,542 42,047 2024 231,542 38,933 2025 231,542 36,049 2026 231,542 33,378 2027 231,542 30,906 2028 0 0 $5,585,572 $2,087,603 Prepared by: Springsted Incorporated (7/19/01) dl�� d : O C N a � m � i C � U y N t�p O � O � ; N, f N LL d C m �n V C C �6 d rC y 1 r � a ^o R S q R 0 C R I � w � Q 3 O � .0 �- T V Y 4� " G O '! U q Z t F a �° a O � a O � S V y W @ m � m 3 C C � Z m ¢ m � c 0 5 0 � � a o a � o a � � o 0 U C @ N m � r � 9 < Z � m y � @ O d E R o J Q m � � c C 3 � e N Q V 1A N N y J � m � N � X C m F � = N d Q O U i� s � m K U N F F 6 � U a o x D � � � U C � F � A a N N � � �' U Z U s �� y N d O J LL N O � p x � N C � � m m � n � � Z U x � W F N ~ Z � U � a m J 0 C ` a a w ` a O O� N N N N N N N N N N N N N N N N N N N N N N N N O � b�� H N h� H N N N h N h h� N h H�� h�� n n n n n � r� � r r r r r r n r � n r r r� N o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O� N N N N N N N N N N N N N N N N N N N N N N N N O � t� N N h N h 1� �� 1� t� h Y�l N h h� h� h 4[l h N N �ri � r n n n r n r r n � r r � r n r r r � r n r ti N O O O O O O O O O O O O O O O O O O O O O O O O N N N(V N N N N N N N N N N N N N N N N N N N N 0 o v <o <o �o �o <o m �o �o <o co �o <o m <o �o �o �o co co �o <o �o m �o 0 m o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N [h (7 M t") (7 f7 t7 C) C� M C1 t7 (7 [+J (7 t") C) (� (7 (") CJ M M C� N N N N N N N N N N N N N N N N N N N N N N N N O O V V d' V V V V V V V V V Q V C Q V V d"Q V d"V V O � rn rn m rn rn rn m rn m m rn m� m rn rn rn rn m rn rn rn rn m O O O N N N N N N N N N N N N N N N N N N N N N N N N O (O V V C< V O V V V V V C V V C V V O 4 V V C V V �O N tn ln � tA ttl H h U5 H N� N N N tn � h tn In tn ln N tn � N N N N N N N N N N N N N N N N N N N N N N N N O O N N N N N N N N N N N N N N N N N N N(V N N N N O O co v v v v v v v v v v v v a a v v a v v v v v v v n r r r n � r n n r` n n � n n � n n r r n r r n C) h 1� 1� t� 1� 1� I� t� r 1� A 1� 1� h h I� r 5� f� n 1� t� 1� 1� N 0 N oJ W m N OJ m OJ oJ m N a> m W 4� m W oJ Ql 6� oJ oJ W 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c o v v a c v a v e v v e v v a v v v v v v a v v v v�o co co M M m m � M m m n M m e o'� m M o'� m m M c`�'� m m`�i m m r o 0 m oi ai oi m oi oi oi ai oi ai m oi ai oi ai oi ai ai oi oi oi ai ai ai m m � r rn m 0 0� m m m^ � m m c m m m m m m m� m c m c m c m m m m v o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M�� m� W� 01 � W 0I m Of m m � W�� 6� m� 6] O� � W � � ��- e � �- � � ��- << v � � ��- � � v �- � � � � c� ca v�n co r m rn o � N m v�n �o � m rn o c� m v�n m r m rn O O O O O O O O O� � N N N N N N N N N N (n t") CJ (h M CJ C') (� t7 [") (h C] CJ t") CJ M M C) th (7 t"J M fh Cl t"J (7 (h M t") ??«<<?�?«<«��«aaaaa?a�� M X N O � A O 0 m a °� V O � m � Vd M r N ff3 ,..�. EXHIBIT D-1 .p (.� G] (7 � c� � a. c°'. n N - C N N ' � t ° c 10 � U c a C7 6 � F' >. x �. U Z = m � F- e e o ° O ✓� ('� °� U C � O O �" • � � O t f�i U ti � � O 'u O Q 6 � 'J X 2 Q F 3 N U 9 � N U L � O d D J T a S m x T m F N Z A a� r- z 0 o e m p� 0 O N r � � �O O [7 t� (� V � � N a � � (��J V O ' N � c� o r � � N II N N N N p m 61 G> U N N A Q Q N N U� 7 F �U N N N N d Pj d � @ � ¢ U Z m a ei o m x N q F' � % N N � � Z O N � � rn O y L� J � � 7 LL � F 3 0 V O m X d �O N A F x d a � � Z C F (7 O N m m � �(f K � � M p�i N , r o � ai � N � e N M Q e e e e � � N n n i� � N <o o ni t� m c� ,r � a N r N C � N t'J �0 • N n 0 ^ � � N � 'J a a d O N U N � m � O u+ ae � T � � t O U ¢ �? O t- N � � O � R m U d O � X L N N R �y - t � ¢ U � � X 0 q C � � � �it N � � y o �' v A N a d � � ] t O O � ¢ N T � d >` @ L � � U u f0 L� N . — y t F 3 '� y L U . p N � L 0. T � � H C r=�gN '? 'n ry C ro m U 7 "" � @ y N d V a' d U � N x �^.� � N R V U' � = .� ~ d f LL � V � � N p a J j O a o L dt � 3 2��; T O d tC U 4 h � � d y � x U � .� � � � Q n a �n p � x U� A A r F�- � X O V d G O F�i Q d t Z � S o a � Z y p T>' j' o E x R a m �� L m u�i m U x a m E`. U a A � � � N \ K C @ N m F- �t0 O � y L N N d U C m p Z � CJ y ° > >. o ° m E 6 V 'o 'o d � �O N � N � d C fJ T�' 16 a O y V � 9 m � d � c> > � V m ° � 3 a d = d s d� U j� V C t m L O d C � = � 3 3 ¢ N N C � y u E E U v � � N y d A A N O C m p L � `o � o O r V U j T T '� c d O N 9 N W d � d LL y F t d m C _ �N 6 � V ,p T '� U � a ° �p N U y A o V C y R '_ O ^ tl C � A �� - 0 SS y U � �' O C V c n E 1� f � � O 0 N t�. 0 V O O _ N � N a a m m a N A A c m o r � `o a e C N U n T � � T � C C � N b m V � L d LL � H � a a � U j C 6 H U � � T � U � F d Z c ,q N J y K C L o U = N 0 L > � I � i !� o y i y 3 d L C > � � U � n i E ic F .� Q � .1� O N N N � � N � a U a � t N t d n a ot-1 N U p . 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V� U� N U C d L O N C d - � 3 3� m � N G C E E m N m Y h � N @ x .� 2 O C � � O a e C � U ^ � T t 0 H 'o ` N U � � d LL y H � N � V j C N U � L T � V � N C ( N U r C O � V L � � " o � II C a X �U � a °' � y L X ^ � C O L U m m a. H E L- F- ... .�. O � N m 0 d U a v�i C . � a � `m N a Council File # d�� 7�3 Resolution # Green Sheet # L11,303 � S) Presented By Referred To Committee: Date RESOLUTION APPROVING THE AMENDMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 (NORTH QUADRANT) 5 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the 6 "City") as follows: 7 Section 1. Recitals 8 1.01. On June 23, 1999, the Housing and Redevelopment Authority of the City of 9 Saint Paul, Mivnesota (the "Authority") established the North Quadrant Redevelopment 10 Project Area (the "Redevelopment Project Area") and adopted a redevelopment plan therefor 11 (the "Redevelopment Plan"). 12 1.02. On August 9, 2000, the City Council approved the creation, within the 13 Redevelopment Project Area, of Taac Increment Financing District No. 1(North Quadrant) (the 14 "T� Increment District") and the adoption of a Ta7c Increment Financing Plan therefor (the 15 "Tax Increment Plan"), a11 pursuant to and in accordance with Minnesota Statutes, Secrion 16 469.174 through 469.179 (the "Tas Increment Act") and Laws of Minnesota 2000, Chapter 17 490, Article 11, Secrion 40 (the "Special Law"). 18 1.03. On October 25, 2000, the City Council approved an amendment to the T� 19 Increment Plan, to, among other things, authorize the issuance of bonded indebtedness. 20 1.04. The Authority has determined that it is necessary to amend the Tax Increment 21 Plan in connection with a second phase development, to add additional properiy to the Taa� 22 Increment District, to increase the authorized expenditures and to authorize additional bonded 23 indebtedness (the "Amended Plan"). The Authority has performed a11 actions required by law 24 to be performed prior to the amendment of the Tas Increment Plan, including, but not lnnited 25 to, notification of Ramsey County and Independent School District Number 625, which have 26 taxing jurisdiction over the properry included in the Tax Increment District, and has requested z7 that the City approve the Amended Plan following the holding of a public hearing upon 28 published and mailed notice as required by law. 29 Section 2. Findings for the Amendment of the Tas Increment Financing Plan. 30 2.01. The City Council hereby finds that the Tax Increment Plan for Tax Increment 31 Financing District No. 1(North Quadrant) as amended by the Second Amendment dated � 1`� 32 August 8, 2001 (the "Amended Plan") is intended and, in the judgment of the CiTy Council, its 33 effect will be, to cany out the objecrives of the Redevelopment Plan and to create an unpetus 34 for the construction in the City of affordable and mixed income housing, will increase 35 employment and otherwise promote certain public purposes and accomplish certain objectives 36 as specified in the Redevelopment Plan and Tax Increment Financing Plan, as amended. 37 2A2. The City Council hereby reaffirms its previous findings that TaY Increment 38 Financing District No. 1(North Quadrant), as enlazged by the Second Amendment dated 39 August 8, 2001, qualifies as an"housing district" within the meaning of the Tax Increment Act 4o and the Special Law for the following reasons: 41 The property to be included in the T� Increment Disirict is located in 42 the Northeast quadrant of the City, i.e. within the 15 acre site bounded 43 by Interstate 44 on the north and east, Jackson Street on the west and 44 Seventh Street on the south, together with the west side of Jackson 45 Street to midblock between Interstate 94 and South Street. 46 Twenty percent of the housing units the Tax Increment District will be 47 occupied by individuals whose family income is equal to or less than 50 48 percent of area median gross income and an additiona160 percent of the 49 units will be occupied by individuals whose family income is equal to or 50 less than 115 percent of area median gross income. Twenty percent of 51 the units in the Tas Increment District will not be subject to any income 52 limitations. 53 Family income means the median gross income for the City as 54 determined under section 42 of the Internal Revenue Code of 1986, as 55 amended. The income requirements will be satisfied if the sum of 56 qualified owner-occupied units and qualified residential rental units 57 equals the xequued total number of qualified units. Owner-occupied 58 units will initially be purchased and occupied by individuals whose 59 family income satisfies the income requirements. For residential rental 60 property, the income requirements apply for the duration of the Taz� 61 Increment District. 62 The fair mazket value of the improvements which aze conshucted in the 63 Tax Increment District for commercial uses or for uses other than 64 owner-occupied and rental mixed-income housing will not consist of 65 more than 20 percent of the total fair market value of the planned 66 improvements in the development plan or agreement. The fair mazket 67 value of the improvements will be determined using the cost of 68 conshuction, capitalized income, or other appropriate method of 69 estimating mazket value. 70 2.03. The City Council hereby reaffirms the following findings: �1 (a) The City Council fi.irther fmds that the proposed development, in the 72 opinion of the City Council, would not occur solely through private investment within �3 the reasonably foreseeable future and, therefore, the use of tax increment financing is 74 deemed necessary. The specific basis for such finding being: 75 The parcels on which the development will occur would not be Q�.'1'�3 76 developed in the reasonably foreseeable future becausethey 77 have been used for surface pazking, which use generates 78 significant income to the current owner of the properry 79 considering the owner's min;mal investment in the properry. 80 (b) The City Council fiuther finds that the Taac Increment Financing Plan, 81 as amended, conforms to the general plan for the development or redevelopment of the s2 City as a whole. The specific basis for such finding being: 83 The Tax Increment Financing Plan will generally compliment and serve 84 to unplement policies adopted in the City's comprehensive plan. The s5 development contemplated is in accordance with the e�sting zoning for 86 the property. 87 (c) The City Council fi�rther finds that the Tax Increment Financing Plan, 88 as amended, will afford masnnum opportunity consistent with the sound needs of the 89 City as a whole for the development of the T� Increment District by private 90 enterprise. The specific basis far such fmding being: 91 The proposed development to occur within the Ta�c Increment DisUrict is 92 housing. The development will increase needed affordable and mixed 93 income housing in the City and will increase the mazket valuation of the 94 City. 95 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, 96 Subdivision 3(2), the City Council hereby finds that the increased mazket value of the 97 property to be developed to the properiy added by the Second Amendment to the Tax 98 Increment District that could reasonably be expected to occur without the use of tax 99 increment financing is $-0- , which is less than the market value estimated to result 100 from the proposed development (i.e., $16,738,822) after subtracting the present value lol of the projected tax increments for the maximum duration of the Tax Increment District 102 (i.e., $2,242,119). In making these findings, the City Council has noted that the 103 property has been undeveloped for many yeazs and would likely remain so if taY 104 increment financing is not auailable. Thus, the use of tax increment financing will be a 105 positive net gain to the City, the School District, and the County, and the tax increment 106 assistance does not exceed the benefit which will be derived therefrom. 107 2.04. The provisions of this Section 2 aze hereby incorporated by reference into and l08 made a part of the Amended Plan. 109 Section 3. Approval of Amendment of the Tax Increment Financing Plan. 110 3.01. The Tax Increment Plan for Tax Increment Financing District No. 1(North 111 Quadrant) as amended by the Second Amendment dated August 8, 2001, is hereby approved 112 and the Amended Plan is hereby adopted. 113 3.02. The staff of the City, the staff of the Authority and the City's and Authority's I 14 advisors and legal counsel aze authorized and directed to proceed with the impiementation of 115 the Ta�c Increment District and the Amended Plan and for this purpose to negotiate, draft, 116 prepare and present to the Boazd of Commissioners of the Authority for its consideration all 117 fiirther plans, resolutions, documents and contracts necessary for this purpose. I 18 3.03. The staff of the Authority is hereby directed to file a copy of the Tax Increment i 19 Financing Plan, as amended, with the County Auditar of Ramsey County and to request the 0 �� '�' � 120 County Auditor to certify the original tax capacity of the property to be added to the Tax 121 Increment Financing District by the Second Amendment. Requested by Department of: Plannina & Economic Development 1 Adopted by Council: Date � a'D l�1 Adoption Certified by Council Secretary Form Approved by City Attorney �� Approved by Mayor for Submission to Council Approved by Mayor: Date __�� "/ ( (/�/ � � � T Rv. <��.il�%�I��I�/I'/� (�a!!� o � -1�3 DATE INI7NTm 7/19/O1 GREEN SHEET No 111303 :,.,,,, f BE OtJ COUNCIL AGENDA BV (DAlE) /�SSIGN August � xuresc w2 Public Hearing °O �" G oeoErz TOTAL # OF SIGNATURE PAGES �G ov.rt�o.�� -�+ arccauKa � OiYAiTd11E1'� ❑ tltYCIFPK ❑ F�wxw�smvrFSOac y ❑ tNnxo��mnrKCr¢ _ � rnvon �onwassr�wn �/ '/ � S- �� (CLIP ALL LOCATIONS FOR SICaNATURE) Resolution approving Amendment to Tax Increment Financing District No. 1(North Quadrant) PLANNING CAMMISSION CIB COMMITTEE CIVIL SERVICE COMMISSION Has this persoNfrm ever woilced untler a con6aU for fhis tlepartment? VES NO Has this pe�so�rm ever been a city empbY�7 VES NO Does this persaNfirm possess a sldll not nortnallyposses,aed by a�ry curtent cRy employee? VES NO Is this person/fiim a targeted vendoR YES NO ��ain an ves answere on seoarate sheet anA attach W areen sheet Expanding district to allow construction of 122 unit rental building and 38 for sale townhomes. AMOUNT OF TRANS.ACTION S —n— SOURCE INFORM4ilON (IXPLfJNj COST/REVENUEBUDGETED(CIRCLEONE) VES NO ACTNITY NUMBER ! � � � hs : J�L 2 �3 2D�1 o � -113 Interdepartmental Memorandum CTTY OF SAINT PAUL TO: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmembez Harris Councilmember Lantry Councilmember Reiter FROM: Brian Sweeney�/,�.....-,�- Allen Carlson � � DATE: July 18, 2001 RE: PUBLIC HEARING: RESOLUTION APPROVING THE SECOND AMENDMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTA QUADRANT) Purpose The purpose of this public hearing is to receive public comment and request the City Council to approve a resolution to amend the Tax Increment Financing Plan (the "Plan") and expand the tax increment financing district for the Tax Increment Pinancing District No. 1(North Quadrant) (the "District") originally adopted by the Housing and Redevelopment Authority of the City of Saint Paul on August 9, 2000. The original District boundaries are bounded by 7"' 8' Wacouta and Sibley Streets. The expanded area will include the block bounded by 8�`, 9 Temperance and Sibley Streets. Background The original District was adopted to allow taY increments to be generated to assist in the financing of a proposed ll4 mulfifamily rental building with 10,000 square feet of commercial space (the "Sibley Pazk Aparhnents") and a 38 unit for sale town home development (the "Essex on the Park"). Twenty-two percent of the rental units wiil be affordable to households at or below 30% of the area median income and 18% of the rental units will be affordable to households at or below 50% of the area median income. The District is being expanded to allow and assist with tas increment financing the construction � 1-'1q3 of 122-unit rental building (the " Sibley Court Apartments") and 38-unit for sale town home/condominium building (the "Dakota") (together the "Phase II Project"). The rental building will have 25 units with rents affordable to households at or below 30% of the azea median income and an additiona126 units with rents affordable to households at or below 50% of the azea median income. Affordable units for the Phase II Project account for 32% of the total units to be developed. The Phase II Project is a continuation of Sherman Associates, Inc. and the Lander Group's (the "Developer") Phase I Project, which currently under construction. Total estimated cost of the Phase II Project is $27.5 million of which the Developer is seeking an estimated $1.82 million of present value tax increment funds to assist in the construction of the structured underground pazking ramp. The Developer is also seeking low income housing taY credits to assist in the financing of the affordable rental housing units. No other City financing is being pledge to the project. Staff is proposing the following amendments to the Plan: Amend Subsection 9 of the Plan which states the proposed budget for the Plan. The budget is being amended to inciude increments that will be generated from the expanded district boundary, which increments will be used to pay administrative costs, the pazking ramp and interest resulting from the issuance of bonds andlor pay-as-you-go note. Amend Subsection 10 to allow up to $1 million of added bonded indebtedness to finance public costs related to the construction of the Dakota development. Amend Subsection 5 to include Phase II parcels into the District. The added area is bounded by 8�', 9"' , Temperance and Sibley Streets. Recommendation Staff recommends approval of the attached resolurion amending the Tax Increment Financing Plan for the Tax Increment Financing District No. 1(North Quadrant) and expanding its boundaries. Statement of the Council President Being duly authorized by the City Council to conduct this Public Hearing, the hearing is now open. This Public Heazing is called for the proposed purpose to consider the following: Second amendment of the Tax Increment Financing Plan for the Tax Increment Financing District No.l (North Quadrant). Notice of time, place, and purpose of this hearing was published in the Saint Paul Pioneer Press on Friday, July 20, 2001. The affidavit of the publication of the Notice of Public Hearing will be made a part of these proceedings. Is there anyone who wishes to be heazd on this item? If not, the Chair will declare this Public Hearing adjourned. o� -11� Attachments Resolution approving second amendment to the T� Increment Financing Plan for the T� Increment Financing District No. 1(North Quadrant) Second Amendment of the T� Increment Financing Plan for the Ta�c Increment Financing District No. 1(North Quadrant) K:\Shazed�Ped�CARLSOAP\sherma�\CC TIF AMEND2 RPT 102500.wpd o � -'113 TAX Ii�tCRE�tENT FNANCNG PLAN for the establishment of TAX INCREMENT FNANCING DISTRICT NO. 1(NORTH QUADRANT) (a housin� district) within the NORTH QUADRANT REDEVELOPMENT PROJECT AREA HOUSIl\TG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL RAMSEY COUNTY STATE OF MINNESOTA Adopted: August 9, 2000 Amended: October 25, 2000 Second Amendment: August 8, 2001 This document �vas drafted by: BRIGGS AND MORGAN (MMD) Professional Association 22�0 First National Bank Bld�. St. Paul, NIN 55101 (651)223-6625 u�szu�3 � � �� TABLE OF CO�iTE\TS (for reference purposes only) TAX IiVCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCNG DISTRICT Iv�O. 1(�IORTH QUADRANT) Subsection 1. Subsection 2. Subsection 3. Subsection 4. Subsection 5. Stibsection 6. Subsection 7. Subsection 8. Subsection 9. Subsection 10. Subsection 11. Subsection 12. Subsection 13. Subsection 14. Subsection 15. Subsection 16. Subsection 17. Subsection 18. Subsection 19. Subsection 20. Subsection 21. Subsection 22. Subsection 23. Subsection 24. Subsection 25. Subsection 26. Subsection 27. Subsection 28. Subsection 29. iz�szi i�s P_aae Fonvard; Background ...................................................................................... 1 StatutoryAuthority .......................................................................................... 1 Statement of Objectives ................................................................................... 1 Redevelopment Plan Overview ................................:....................................... 2 Parcels to be Included in Tax Increment Financing District No. 1 .................. 2 Parcelin Acquisition ........................................................................................ 3 Devetopment Activity in Tax Increment Financin� District No. 1 for which Contracts have been Signed .................................................................. 3 Other Specific Development Expected to Occur within Redevelopment Area.................................................................................................................. 4 Estimated Cost ofProject .................................................................................4 Estimated Amount of Bonded Indebtedness .................................................... 5 Sourcesof Revemie ..........................................................................................6 Estimated Captured Tax Capacity and Estimate of Tax Increment ................. 6 Type ofTax Increment Financing District .......................................................6 Duration of Tax Increment Financin� District .................................................7 Estimated Impact on Other Taxin� Jurisdictions .............................................7 State Taz Increment Financing Aid ................................................................. 8 Modification of Tax Increment Financin� District and(or Tax IncrementFinancing Plan ................................................................................ 8 Modifications to Tax Increment Financing District ......................................... 8 Administrative Expenses .................................................................................9 Limitation of Increment .................................................................................10 Use of Tax Increment ..................................................................................... l 1 Notification of Prior Planned Improvements ................................................. l l Excess Increments .................................................................................. Requirements for Agreements with the Developer ........................................12 Other Limitations on the Use of Tax Increment ............................................ i3 County Costs ........................................................................................ Assessment Agreements ................................................................................ Administration of the Tax Increment Financing District ...............................14 Financial Reporting Requirements ................................................................14 ii " o �-'1q� EXHIBIT A-1 - Map of Tax Increment District No. 1, as ori�inally adopted EXHIBIT A-2 - Map of Tax Increment District No. 1, as enlarged by Second Amendment EXHIBIT B- Map ofNorth Quadrant Redevelopment Project Area EXHIBIT C-1 - Projected Tax Increments from Phase 1 EaHIBIT G2 - Projected Tas Incremeuts from Phase 2 EXHIBIT D-1 - Estimated Impact on Other Taxin� Jurisdictions of Phase 1 EXHIBIT D-2 — Estimated Impact on Other Taxin� 7urisdictions of Phase 2 �2782��v3 111 Dl• TAX INCREMENT FNAiv'CING PLAivT FOR TAX INCREMENT FINAivTCING DISTRICT NO. 1(NORTH QUADRANT) Subsection 1. Fonvard: Backeround. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), and its staff and consultants have prepared the follo�vin� information for the establishment of Tax Increment Financin� District \�o. 1(North Quadrant), a housin� district (the "Tax Increment DistricP'). The Tas Increment District is located �vithin thz 1Vorth Quadrant Redevelopment Project Area (the "Redevelopment Project Area") established by the HRA pursuant to the North Quadrant Redevelopment Plan adopted by the HRA on June 23, 1999 (the "Redevelopment Plan"). The Redevelopment Plan was approved by the Planning Commission on June 23, 1999. The Tax Increment Financin� Plan was originally adopted on Au�ust 9, 2000, and was amended on October 25, 2000, to amon� other thin�s, authorize the issuance of bonded indebtedness. On August S, 2001, the HRA amended the Tax Inccement Financin� Plan in connection with a second phase of development, to add additional property to the Tax Increment Financin� District, to increase the authorized expenditures and to authorize additional bonded indebtedness. Subsection 2. Statutorv AuthoritY. There exist areas within the City of Saint Paul (the "City") where public involvement is necessary to cause development to occur. To this end, the HRA has certain statutory powers pursuant to special legislation (Laws of Minnesota, Chapter 490, Article 11, Section 40 (the "Special Law"), and Minnesota Statutes, Section 469.174 throu�h 469.179 (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to a project. Subsection 3. Statement of Objectives. The Tax Increment Financing District, as originally adopted, consists of 2 parcels of land and adjacent and internal rights-of-way. In connection �vith the second amendment, Z parcels were added to the Tax Increment Financin� District. A map showin� the boundaries of the Tax Increment District, as originatly adopted, is attached as Exhibit A-1. A map showin� the boundaries of the Tas Increment District, as expanded by the Second Amendment, is attached as Exhibit A-2. The Tax Increment Financin� District is bein� created to facilitate a 38 unit owner occupied to�cnhome development (the "Phase 1 Owner Occupied DevelopmenY') and a 114 unit rental apartment facility (the "Phase 1 Rental Development"). Phase 2 of the development is a 38 tmit owner occupied townhome development (the "Phase 2 Owner-Occupied DevelopmenY') and a 122 unit rental apartment facility (the "Phase 2 Rental Development"). The tax increment financin� plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the North Quadrant Redevelopment Project Area. The followin� are some of the objectives bein� facilitated by this Tax Increment Financin� Plan. A. Provide Affordable Hot�sine for Saint Paul Residents. i. Phase 1 De��elopment. The available housing in the downtown area of the city �vill expand by more than 152 units �vith the completion of the housin� development contempiated by this Tax Increment Financin� Plan. 22 of the units in the Phase 1 Owner- 127821Iv3 b � -'14� Occupied Development �vill be affordabte to households between 80% and 115% of area median income. A sufficient number of units in the Phase 1 Rental Development �vill be affordable to low and moderate income persons such that the requirements of the Special La�v are met. 2. Phase 2 Develoqment. The available housin� in the do�vntown area of the City �vill expand by more than 160 units with the completion of the Phase 2 Development. A sufficient number of units in Phase 2 will be affordable to ]ow and moderate income persons such that the requirements of the Specia] Law are met. B. To Redevelop Underused Propertv. The Tax Increment District is a site that has been underutilized for many years. The majority of the area comprisin� the site has been used for surface parking. New commercial, cultural and recreational investments are jeopardized by lack of development in the downtown area. In order to protect past investments and encoura�e new development in the downtown area new housin� development needs to be created to encoura�e additional private investment. C. Expand the Tax Base of the Citv of Saint Paul. It is expected that the taxable market value of parcels in the Tax Increment District will increase by approximately $21,280,000 and $16,738,822 as a result of the Phase 1 Development and Phase 2 Development, respectively. The activities contemplated in the Redevelopment Plan and this Tax Increment Financin� Plan do not preclude the undertakin� of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Tax Increment District and the Redevelopment Project. Subsection 4. Redevelopment Plan Overview. Property to be Acquired - Selected propeRy located within Tax Increment Financin� District or Redevelopment Project Area may be acquired by the HRA. 2. Relocation - if necessary, complete relocation services are a�•ailable pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to a development and completion of the necessary legal requirements, the HRA may sell or assist a developer with the cost of selected properties within Tax Increment Financin� District or Redevelopment Project Area, or may lease land or facilities to a developer. Subsection 5. Parcels to be Included in Tax Increment Financine District No. 1. The following parcels located in the City of Saint Paul, Ramsey County, Minnesota: tz�xzii�s o � -�» A. Phase 1 Development. PN NO. 312922440028 312922440029 B. Phase 2 Development. PN NO. 3129224�0009 312922440003 ADDRESS 221 7` Street East 440 Sibley Street ADDRESS 205 Eighth Street East 194 Ninth Street East FURTHER INFORMATION REGARDNG THE IDENTIFICATION OF THE PARCEL TO BE INCLUDED IN TAX 1NCREMENT FINANCNG DISTRICT NO. 1 CAN BE OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA. Subsection 6. Parcel in Acquisition. The HRA may finance all or a part of the costs of acquisition of the parcels identified in Section 5 of this Tax Increment Financin� Pian. The following are conditions under which properties not designated to be acquired may be acquired at a fiihire date: (1) The HRA may acquire propeRy by gift, dedication, condemnation or direct purchase from �villing sellers in order to achieve the ob,}ectives of the tax increment financing plan; and (2) Such acquisitions will be undertaken only when there is assurance of funding to Finance the acquisition and related costs. Subsection 7. Development Activitv in Tax Increment Financin� District No. I for which Contracts have been SiQned. The following contracts have been or will be entered into by the HRA and the persons named below: Phase 1 Development: No development a�reements have been entered into at the time the Tax Increment Financing Plan �vas originally adopted. However, the HRA anticipates enterin� into a devetopment agreement with an entity to be formed by Sherman Associates, Inc. and The Lander Group (the "Developer") with respect to the development of a 38 unit owner occupied townhome development and a 114 unit rental apartment facility. Phase 2 Devetopment: No development a�reements have been entered into at the time the Second Amendment was adopted. However, the HRA anticipates entering into a iz�szi i�3 O �-1g3 development agreement �cith an entity to be formed by Sherman Associates, Inc. and The Lander Group (the "Developer") with respect to the development of a 38 unit owner occupied totivnhome development and a 122 unit rental apartment facility. Subsection 8. Other Specific Development Expected to Occur within Redevelooment Area. Although no specific additional developments have been identified at this time, the HRA expects that the acquisition and construction of the above housing development will encoura�e additional development in the Redevelopment Project Area. Subsection 9. Estimated Cost of Proiect. The HRA has determined that it will be necessary to provide assistance for certain public costs of certain housin� activities. To facilitate thz development of the Tax Increment Financing District, this Tax Increment Financing Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Tax Increment Financin� District is otttfined in thz followin� table: PROJECTED SOURCES PHASE ONE PHASE TWO TOTAL OFFCiNDS Ownership Rental Ownership Rental SOURCES TaxInerementRevenue 3,731,000 6,080,000 1,852,8t7 3,031,755 14,695,572 TIF Bond Proceeds 1,283,000 701,893 1,984,000 Issuer Bond Equity 36,000 36,000 Metropotitan Council Grant 450,000 450,000 Metropalitan Council Loan 500,000 500,000 HRA Enterprise Fund Loan 250,000 250,000 Federal HOME Loan 750,000 750,000 750,000 TOTALREVENUE $S,SOQ000 $7,580,000 $2,553,817 $3,031,755 $18,665,572 1278?IIv3 o � -'1 �� PROJECTED USES OF pHASE ONE PHASE TWO TOTAL FUNDS Ownership Rental Ownership Rental USES Site 300,000 84Q000 1,14Q000 Improvements/preparation costs Parkingfacilities 95Q000 1,600,000 666,000 953,98t 4,169,981 Bond principal payments 1,283,000 701,000 1,984,000 Bond interest payments 2,136,000 886,659 3,022,659 Pay-as-you-go interest 3,300,000 1,763,006 5,063,006 Cost of Issuance 36,000 35,000 35,000 Administrative 345,000 34Q000 265,158 314,768 1,264,926 TOTAL EXPENSES $5,500,000 $7,580,000 $2,553,817 $3,031,755 $18,665,572 Estimated costs associated «�ith Tax Increment Financin� District are subject to changz and may be reallocated between line items by the HRA. The cost of all activities to be financed by the tax increment will not exceed, without formal modification, the budget for the tax increments set forth above. Subsection 10. Estimated Amoimt of Bonded Indebtedness. The HRA may issue its tax increment revenue bonds in an amount not to exceed $1,283,000 to finance public costs of the �vszii�; p ► -1°t3 Phase 1 O«�ner Occupied Development and 51,000,000 to finance the public costs of the Phase 2 Owner Occupied Development. A porcion of the public costs may be financed on a pay-as-you- �o basis iF and to the extent a por[ion of the proceeds of the revenue bonds are applied to the extra ordinary redemption of the bonds. The expenditures authorized by this Tax Increment Financin� Plan for the Rental Development will be paid for on a pay-as-you-�o basis. Subsection 1 l. Sources of Revenue. The costs outlined in Section 9 above «�ill be fi��anced through the annual collection of tax increments, and the ]oans or grants given by or throu�h the City or HRA as set forth above. The total cost of thz Phase 1 Rental Development and Phase 2 Rental Development are estimated to be approximately S 17,000,000, and S 18,180,000 respectively. The total cost of the Phase 1 Owner Occupied Dzvelopment and the Phase 2 Owner Occupied Development are estimated to be approximately 59,500,000 and S 10,792,000 respectively. Additional sources of funds for the Phase 1 Rental Development will be assistance directly from the Minnesota Housin� Financing Agency in the amount of 5700,000 and from the Family Housin� Fund in the amount of �150,000. The Developer will receive a�450,000 grant directly from the Minnesota Housin� Financing Agency for the Phase 1 Owner Occupied Development. The Developer will contribute equity or obtain private financin� for the remaining costs of the Developments. Subsection 12.Estimated Captured Tar Capacit�nd Estimate ofTax Increment. The most recent tar capacity of Tac Increment Financing District is estimated to be $10,577 as of January 2, 1999. In connection with the additional property added to the Tax Increment Financin� District by the Second Amendment, the most recent tax capacity is 58,812. The estimated captured tax capacities of Tax Increment Financin� District at completion of Phase 1 Development and Phase 2 Development is estimated to be �254,812 and �179,400, respectively. The HRA elects to retain all of the captured tax capacity to finance the costs of Tax Increment Financing District No. 1. The HRA elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, subd. 3(a). Subsection 13. Tvpe of Tar Increment FinancinQ District. Tax Increment Financin� District I�'o. 1 is a housing district established, pursuant to Minnesota Statutes, Section 469.174, Subd. 10, and the Special Law, and �vill satisfy the requirements described belo�v. The Tax Increment Financin� District consists of a project, or a portion of a project, intended for occupancy, in part, by persons of low and moderate income as defined in Minnesota S[atutes, Chapter 462A, Title II, of the National Housing Act of 1934; the National Housin� Act of 19>9; the United States Housin� Act of 1937, as amended; Title V of the Housin� Act of 1949, as amended; any other similar present or fiiture federal, state, or municipal legislation, or the regulations promulgated under any of those acts. Twenty percent of the units in the development in the Tax Increment District must be occupied by individuals �vhose family income is equal to or less than 50 percent of area median gross income and an additiona160 percent of the units in the development in the Tax Increment District must be occupied by iz�xz<<�3 6 - 0 t -'117 individuals whose family income is equal to or less than 115 percent of area median gross income. Twenty percent of the units in the development in the Tax Increment District are not subject to any income limita[ions. Family income means the median gross income for the area as detemtined under section 42 of the Intemal Revenue Code of 1986, as amended. The income requirements are deemed to be satisfied if the sum of qualified otivner-occupied units and qualified residential rental units equals the required total number of qualified units. Owner- occupied units must be initially purchased and occupied by individuals whose family income satisfies the income requirements of this subdivision. For residentia] rental propzrty, the income requirzments of this subdivision apply for the duration of the Tax Increment District. The development in the Tax Increment District does not qualify if the fair market value of the improvements �vhich are constructed for commercial uses or for uses other than owner- occupied and rental mixed-income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or a�reement. The fair market value of the improvements may be determined usin� the cost of construction, capitalized income, or other appropriate method of estimatin� matket value. In establishin� Tax Increment Financin� District, the determination has been made that the anticipated development would not be reasonably expected to occur solely throu�h private investment within the reasonably foreseeable future and that therefore the use of tax increment Cinancin� is deemed necessary. In makin� this determination the HRA has relied on its own knowled�e of the development history of the area and on representations madz by the Developer. The HRA and the City have detemiined that the proposed development of the Tas Increment District would not reasonably be expected to occur solely throu�h private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financin� would be less than [he increase in the market value estimated to result from the proposed development after subtractin� the present value of the projected tax increments for the maximum duration of the district permitted by the plan. Subsection 14. Duration of Tas Increment Financin� District. The duration of Tax Increment Financing District will be 25 years from the receipt of the first tax increment. The date of receipt of the first tax increment is expected to be July of 2002. Attached as Exhibit C-1 is the projected receipt of tax increments from the Phase 1 Development in the Tax Increment Financing District. Attached as Exhibit C-2 is the projected receipt of tas increments from the Phase 2 Development in the Tas Increment District. Subsection I5. Estimated Impact on Other Taxina Jurisdictior�s. The estimated impact of Tax Incrzment Financing District on the other taxin�jurisdictions assumes construction �vould have occurred without the creation of Tax Increment Financing District. If the construction is a result o€ tax increment financin„ the impact is $0 to other entities. Norivithstandin� the fact that the fiscal impact of the other tasin� jurisdictions is $0, due to the fact that the construction would not have occurred without the assistance of the HRA, the estimated impact of Tas Increment Financin� District would be as set forth on Exhibit D if the "but for" test «as not met. 127821Iv3 0�-�1 Subsection 16. State Tax Increment Financina Aid. Pursuant to Minnesota Statutes, Section 273.1599, for tax increment financin� districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financin� aid (RISTIFA) applied to the municipality's Local Go�•emment Aids (LGA) first and, Homestead and A�ricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifyin� captured tax capacity (QCTC) ofTax Increment Financin� District. Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6, the HRA may choose an option to the LGA-HACA penalty, Ta� Increment Financin� District is exempt from the LGA- HACA reduction if the HRA elects to make a qualifying local contribution at the [ime of approving the Plan. To qualify for the exemption in each year, the HRA must make a qualifyin� local contribution to the project of a certain percentage. The local contribution for a housing district is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the HRA must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the HRA or the City, such as the general fund, a property tax levy, or a federal or state grand-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, �vith tas increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general govemment purposes. Tlie HRA elects to make the annual loca] contribution to the project to exempt itself from the LGA-HACA penalty. The HRA will pay for costs of the project described in this Plan, in an amount equal to 5 percent of anmial tax increment for Tax Increment Financing District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development. The contribution may also be made in the form of public improvement financed by the City or other unit of govemment with unrestricted funds. Subsection 17.Modification of Tax Increment Financin� Distric[ and/or Tax Increment Financin� Plan. As of Au�ust 9, 2000, no modifications to Tax Increment Financin� District No. 1 or the Tax Increment Financin� Plan therefore have been made. On October 25, 2000, the Tax Increment Financing Plan �vas amended and restated as set forth herein. Subsection 18.Modifications to Tax Increment Financine District. In accordance �vith Minnesota Statutes, Section 469. 175, Subd. 4, any: reduction or enlargement of the geographic area of the Tax Increment Financing District; increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination �vas not a part of the ori?inal plan, or to increase or decrease the amount of interest on the debt to be capitalized; (?78?IIv3 0�=�q7 3. increase in the poRion of the captured net tax capacity to be retained by the HRA; 4. increase in total estimated tax increment expenditures; or desi�nation of additional property to be acquired by the HRA, shall be approved upon the notice and after the discussion, public hearing and findin�s required for approval of the original plan. The geo�raphic area of District may be reduced, but shall not be enlarged after five years followin� the date of certification of the original net tax capacity by the county auditor. The requirements of this para�raph do not apply if (1) the only modification is elimination of parcel(s) from Tax Increment Financin� District and (2)(A) the cunent net tax capacity of the parcel(s) eliminated from the Tax Increment Financin� District equals or esceeds the net tax capacity of those parcel(s) in the Tax Increment Financin� DistricYs original net tax capacity or (B) the HRA agrees that, notwithstandin� Minnesota Statutes, Section 469. 177, Subd. 1, the ori�inal net tax capacity �vill be reduced by no more than the cunent net tas capacity of the parcel(s) eliminated from the Tar Increment Financing District. The HRA must notify the County Auditor of any modification that reduces or enlarges the gzo�raphic area of the Tax Increment Financing District or the Redevelopment Project Area. Modifications to Tax Increment Financin; District in the form of a budget modification or an expansion of the boundaries �vill be recorded in the Tax Increment Financin� Pian. Subsection 19.AdministrativeExoenses. In accordance with Minnesota Statutes, Section 469.174, Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3, administrative expenses means all expenditures of the HRA, other than: amounts paid for the purchase of land or amounts paid to coniractors or others providing materials and services, including archiEectural and engineering services, directly connected with the physical development of the real property in the district; . relocation benefits paid to or services provided for persons residin� 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 Minnesota Statutes, Section 469.178. Administrative expenses also include amounts paid for services proti�ided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any atithorized and documented administrative expenses for the Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total taY increment expenditures, �vhichever is less. �z�szi�,s o�-1q3 Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, tax increments may be used to pay for tlte county's actual administrative expenses incurred in connection with the Tax Increment Financin� District. The county may require payment o£those expenses by February li of the year followin� the year the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the HRA and the county treasurer shall pay the amotmt deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for tlie cost of financial reportin� of tax increinent financin� information and the cost of examinin� and auditing authorities' use of tax increment financing. Subsection 20. Limitation of Increment Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no tax incrzment shall be paid to the HRA for the TaY Increment Financin� District after three (3) years from the date of certification of the Ori�inal Net Tax Capacity value of the taxable property in the Tax Increment Financin� District by the County Auditor unless within the three (3) year period: (a) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 to 469.165, or (b) the HRA has acquired property within the Tax Increment Financing District, or (c) the HRA has constructed or caused to be constructed public improvements w�ithin the Tax Increment Financin� District. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fimd or other escrow account held in trust for alt outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to Mianesota Statutes, Section 469.176, Subd. 6: if after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service includin� sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance �vith the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the oi�•ner of [he parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel includin� qualified improvement of a street adjacent to that parcel, in accordance with the tas increment financin� plan, the i?�az i i �-� 10 a �-'�q3 authority shall certi fy to the county auditor that [he activity has commenced and the county auditor shall certify the net tas capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financin� district. The county auditor must enforce the provisions of this subdivision. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or openin� of a new street, (2) re;ocation of a street, and (3) substantial reconstruction or rebuildin� of an existing street. Subsection 21. Use of Tax Increment. The HRA hereby detern�ines that it �vill use 100 percent of the captured net tax capacity of taxable property located in the Tax Increment Financing District for the followin� purposes: to pay the principal of and interest on bonds used [o finance a project; 2. to finance, or othenvise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 4b9.134; 3. to pay for project costs as identified in the bud�et; 4. to finance, or otheRVise pay for other pucposes as provided in Minnesota Statutes, Section 469.1 76, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to the HRA or for the benefit of Redevelopment Project Area by the developer; 6. to finance or othenvise pay premiums and other costs for insurance, credit enhancement, or other security guaranteein� the payment when due of principal and interest on taY increment bonds or bonds issued pursuant to the Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both; and to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicablz to the HRA nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4. Subsection 22.Notification of Prior Planned Lnqrovements. The HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of the Tax Increment Financing District enlar�ement with a listin� of all properties within the TaY Increment Financing District or area of enlargement for �vhich building permits ha�•e been issued during the eighteen (18) months immediately preceding iz7szii�3 11 4 1—'1�3 approval of the Plan by the municipality pursuant to Minnesota Statutes, Section 4G9.175, Subd. 3. The County Auditor shall increase the original value of the Tax Tncrement Financin� District by the value of improvements for �vhich a buildin� permit was issued. Pursuant to NlinnesoFa Statutes, Section 469.177, Subd. 4, the HRA has reciewed the area to be included in the Tas Increment Financing District and found no parcels for �vhich building permits have been issued during the 18 months immediately� preceding approval of the Plan by the HRA. Subsection 23. Excess Tax Increments. Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in �vhich the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess amount to do any of the following: prepay any outstandin� bonds; 2. discharge the pled�e of tax increment therefor; 3. pay inro an escrow account dedicated to the payment of such bond; or 4. retum the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Tax Increment Financin� District or Redevelopment Project Area. Subsection 24. Requirements for Aareements with the Developer. The HRA �vill review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable mu�icipal ordinances and codes. To facilitate this effoR, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawin�s, landscapin� plan, grading and storm draina�e plan, si�nage system plan, and any other drawin�s or narrative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. The HRA may also use the Agreements to address other issues related to the development. Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no more than 10 percent, by acrea�e, of the property to be acquired in the Tax Increment Financin� District as set forth in the Plan shall at any time be o«•ned by the HRA as a result of acquisition with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469. 178, without the HRA havin„ prior to acquisition in excess of 10 percent of the acrea�e, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA should the development or redevelopment not be completed. I?73? I I v3 1 � o � •'1q3 Subsection 2�. Other Limitations on the Use of Tax Increment General Limitations All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or othenvise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 469.134; These revenues shali not be used to circumvent existing levy limit law. No revenues derived fi tax increment sl�alt be used for the acquisition, construction, renovation, operation or maintenance of a building to be used primarily and re�ularly for conductin� the business of a municipality, county, school district, or any other local unit of govemment or the state or federal govemment, or for a commons area used as a public park, or a facility used for social, recreation or conference purposes. This provision shall not prohibit the use of revenues derived from tax incremznts for the construction or renovation of a parkin� stn�cture. 2. Pooline Limitations. At least 80 percent of tax increments from the Tax Incremznt Financing District must be expended on activities in the Tax Increment Financing District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities �vithin said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or othenvise, on activities outside of the Tax Increment Financing District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applyin� this restriction, all administrative expenses must be treated as if they �vere solely for activities outside of the Tax Increment Financing District. Five Year Limitation on Commitment of Tax Increments Tax increments derived from the Tax Increment Financing District shall be deemed to have satisfied the 80 percent test set forth in para�raph (2) above only if the five year rule set forth in Minnesota Statutes, Section 469. 1763, Subd. 3, has been satisfied; and beginning with the sixth year followin� certification of the Tax Increment Financin� District, 80 percent of said tax increments that remain afrer expenditures permitted under said five year rule must be used only to pay previously commitment expenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section 469.1763, Subd. 5. 4. Expenditures Outside District. The Authority hereby elects to spend an additional ten percent of the tax increments on activities located outside the Tax Increment District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d) provided that the expenditures meet the followin� requirements: (i) they are used exclusively to assist housing that meets the requirements for a qualified low-income buildin� as defined in Section 42 of the Intemal Revenue Code of 1986, as amended (the "Code"); inaai i�a 13 d � -'113 (2) they do not exceed the qualified basis of housin� as defined under Section 42(c) of the Code less the amount of any credit allowed under Section 42 of the Code, and (3) They are used to (i) acquire and prepare the site for housing, (ii) acquire, construct or rehabilitate the housing or (iii) make public improvements directly related to the housin�. Subszction 26. Countv Road Costs Pursuant to Minnesota Statutes, Section 469. 17�, Subd. la, the county board may require the HRA to pay for all or part of the cost of county road improvements if, the proposed development to be assisted by tax increment �vill, in the judgement of the county, substantially increase the use of county roads requirin� constniction of road improvements or other road costs and if thz road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the HRA and consultants, the proposed development outlined in this Plan �vill have little or no impact upon county roads. If Ihe county elects to use inerzments to improve county roads, it must notify the HRA within thirty days of receipt of this Plan. Subsection 27. Assessment Aereements Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an a�reement in recordable form with the developer ofpropercy �vithin the Tax Increment Financin� District which establishes a minimum market value of the land and completed improvements for the duration of the Tax Tncrement Financin� District. The assessment agreement shall be presented to the assessor who shall revie�v the plans and specifications for the improvements constructed, review the market value previously assi�ned to the land upon which the improvements ace to be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certi£y the minimum market value agreement. Subsection 28. Administration of the Tax Increment Financin� District. Administration of the Tas Tncrement Financin� District will be handled by the Executive Director of the HRA. Subsection 29. Financial ReportinQ Requirements. The HRA will comply �vith all reportin� requirements of Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a. ia7szii�s 14 0�-'1q3 E\Iti13t[ .�-i . .(. '1 .i•J � � L � � � � ._ � � � V ..... L � � .... 0 � � F"` � � \ � � � �, w . , C1TY/Ca1NTY C�£DIT UNION I EMBASSY SUITES F�TEL � � E. � SQUARE "'� � .. •. MINN. JTU.+Z LIfE \CENSER �_ �; t�)': �dC ] � � 1 �� - -•---- � •-- F£PRS PAR1C GALTIER PLAZA BIDG. _ �•�� FIRST o TR'JST c� CEHf ER � EXHIBIT A-2 _.. „ „ „ ' � U ' r �;;��: : �� , FIRST BAPTIST � CFiURCH ' SCr. I I , : �-� . . [T ..� \ ". ;�;��;{ � wacoute� $7, f{ARY'S � Commons Park CAT UC �� :.� . E. 8lh ST. TIF Dlslrid No. 1 (NoRh Quadrant) � �� ' � � ��l Sc'. J o � �:' E.� �e, sr: FfR]TPGE � }4lUSE � PARX �T � LdrFRTOVN � u1[N G SQIY'n'£ EQlSQFS$ BLDG �� S A.DG I I I I �� I -<'� E. 6th : _-rr--rrrz .�.�. . .' �' '.': .'.' '.' �p.... . . 9.p. ...• .�.�. �:�.�.� �'. _.......•.. 1 �� .�`a-.1 �� c o � -1't� � � \ � �`e Q� � J � � � �L�_ � � � — V O y � n ST. �- TF£ P KSIIE � � � � - 4�.� � �� E. tOth 57. EXHIBIT B � � � � �., ��s.":.�� ..�.�.�...�_. . .�ro��t�1 Ql�r�c��a�it �. � � EXHIBIT C-1 �� 1q � Assum tions Re ort City of St. Paui, Hiinnesota Proposed Tax Increment (Redevelopment) Financing Distric[ North Quadrant (Sibley Park) Housing Development Scenario A- Phase One Totai Project (26 years, 8% note) Type of Tax Increment Financing District Maximum Duration of TIF District Certification Request Date Decertification Date Base Estimated Market Value Times: First SO Excess Original Net Tax Capacity (1) Rzdavelopment 25 years from tst increment 09/07/00 72/O7/27 (26 Years of Increment) 2000/2001 $683,500 0 0 y 7 0,577 AssessmenVCollection Year Base Estimated Market Value Increase in Estimated Market Value (1) Total Estimated Market Vaiue Times: First SO Excess Total Net Tax Capacity (t) Base Inflation Factor Locai Tax Capacity Rate F�scai Disparilies Coniribution From TlF DisSrict Administrativ= Retainage Percent (maximum = 70°�6) Poohng Percent City Tax Rate (Oniy if Local-Effort TIF) 6onds 8onds Dat°d Fust interest Date Underoiriters Discaunt 0.0090 0.00°0 2001/2002 200212003 2003/2004 200A/2005 5683,500 5683,500 5683,500 5683,500 2,000,000 15,065,744 15,065,744 15,065,744 $2,683,500 515,7A9,244 515,749,244 515,749,244 0.00% 0 0 0 0 0.00% 0 0 0 0 NA NA NA LGA/HACA Loss: Will Annual Local Contribution Be Made (Yes or No)? (2) I.S.D �525 Equalized Tax Capacity Rate I.S.D k625 Sa!es Ratio City Szl=s Rztio & Taxable Net Tax Capacity Preseni Valu? Date & Rate NA 748.553% (Payablz 2000) 0.0000 f {NA for Housing) 10.00% 0.00% NA Note (Pav-As-You-Go) Note Dated 09.'Ot/00 Note Rate 8.00% Yes NA NA NA NA 09/Q7l00 5.00% (i) See `Schedule of Project Values' tor caicutation of Market Values and Net Tax Capaci6es. (2) Assumes annual contribution will be madz upfront and will not be available (or debt service. S4t,527 5265,389 5265,389 5265,389 Preoa2d bv: S�rirgsted Incorporated (printed on 06/28/2000 at 321 PM) Tif062c=_.xls d�-193 Market Value Anaiysis Report City ot St. Paul, h7innesota Proposed Tax Increment (Redevelopment) Financing District North Quadrant (Sibiey Park) Housing Development Scenario A- Phase One Total Project (26 years, B% note) Assumotions Present Vai�a Date P.V. Rate - Gross T.1. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotai Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 22 23 24 25 26 09l0 7 /00 8.00%, 5 7 5,065,744 3,481,295 511,584,449 0 $11,584,449 Annual Present GrossTax Value � Year l�creme�t SA�%, 2002 45,977 39,766 2003 378,531 298,569 2004 378,531 276,453 2005 378.53? 255,975 2006 378,531 237,014 2007 378,531 279,457 2008 378.531 203,207 2009 378,531 188,149 2010 378,531 174,212 2011 378,531 161,308 2012 378,531 749,359 2073 378,531 138,295 2014 378,531 128,051 2015 378,531 178,566 2016 378,531 109,783 2077 378,531 701,657 2018 378.531 93.727 2019 378,531 87,149 2020 378,531 80,694 2021 378,537 74,717 2022 378,531 69,182 2023 378,531 64,057 2024 378,531 59.312 2025 378,531 54,919 2026 378,531 50,857 2027 378,531 47,084 59,509,252 53,481,295 Prepared by: Springsted Incorporated (06/28/2000) c 0 c i� �� , t N� ti N N N N N N C' �� t� t�.� 4[�.� Cl. c3 �7 � 4� P N �' N N N� c, c.� �3c3e=c3e7cl cl � F�.. � p u c3��;ot��,��N=o�°°��a�aa� N N N y'+ N f� I�: N N N I� � c N N N N C C� N G'. 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O.:C DJO C00 OOB 0:: F3.TEJ3:1 SS.Q:1;J.1� 5!.EOO,•9oL• 253tl.'Gl?i 5d't:Y,9• F.a�::TUhcamr: V?. i Ta�l Nn ae•�kMi SJ 2�731i 00 loan B�L�_ Cvlv>rc�a.3 � �t5!K Li : zss.s:s... tYl: .. °t :_� ,.: . :?? EEi "_ ].]2?.�F'. 3: : T� i1: 41 - lil.:._ 4 ::3i.J�: f5 ],L'.i,1'053 :�C�C.1�:.1'� � 4'7.++3 C< 3 i21^.` t :0 � `..0.[W CO O.SO:.CL'..CO p,'C].iC3_3 ] G1 <�?.10 . �.? 9:1 � 3 rz.��, _. . _.:.2P... i Y3.!« C'1 o :�a.cca as ?']� 45]?- :n. ';z ] Ci3 7d:.s0 29)S.Tt]YJ :;9f3,5))..S :,Fi'.1ss.91 i d11315:• �.]JT,1)� �3 T.G�t +;L23 z5] :.49.•3 :.1: ..._. ..'aiJ, :� j=1 : .>d ? 371. :i :d . 21?.'J'i.'_.�. z.•m.:azw . :.,.r=.:o i=3 LS f C- ',d'.C.Y6 SS 1.4a7.5'07T t ,'.�.C.5/J.St t.5}.9'e.T: 1!i'..� '" t ,:3�'0?: 9> 1.17:.5:2.SJ ..�� i�.l e,e; _... C_: _3:: ,=5.1.3 .. ::t:7."'c_ i�=.�a� c �; 7 G: C.Ca O' �� `V hcaioa oY Sca�,:,ica irA.o'ttn: Y or.OS*,"-„7.D: >, �:GS PYj Tfi'lt: ra a t •' �x Hi�3t � c--Z Assum tions Re ort City of St. Paul, Minnesota Proposed Tax Increment (Housing) Financing District North Quadrant Phase Two Scenario A- Phase Two Total Project (25 years, 8% note) Type of Tax Increment Financing District Ma�imum Duration of TIF District Certifiqtion Request Date Decertification Date Base Estimated Market Value Times: First $0 Excess Onginat Net Tax Capacity (1) Base Estimated Market Value Increase in Estimated Market Value (1) Total Estimated Market Value Times: First $0 Excess Total Net Tax Capacity (1) Base Inflation Factor Local Tax Capacity Rate Fiscal Disparities Contribution From TIF District Adminishative Retainage Percent (maximum = 10%) Pooling Percent City Tax Rate (Only if Local-Effort TIF) Bonds Bonds Dated First Interest Date Underwriters Discount 0.00% 0.00% Redevelopment 25 years from 'ISt increment 08/01/01 12/01/27 (25 Years of Increment) 2001/2002 $806,000 0 0 $9,334 AssessmenUCollection Year 2002/2003 2003/2004 2004/2005 2005/2006 $806,000 $806,000 $806,000 $806,000 2,000,000 16,738,522 16,738,822 16,738, 822 $2,806,000 $17,544,822 $17,544,822 $17,544,822 0.00% 0 0 0 0 0.00% 0 0 0 0 NA 123.330% (Est Pay 2002) 0.0000% (NA for Housing) 10.00% 0.00% NA Note (PaV-As-YOU-Gol NA Note Dated 08/0'IlO� NA Note Rate 8.00% NA LGPJHACA Loss: Will Annual Local Contribution Be Made (Yes or No)? NA I.S.D #625 Equalized Tax Capacity Rate NA I.S.D #625 Sales Ratio NA City Sales Ratio & Taxable Net Tax Capacity NA NA Present Value Date & Rate 08/01/01 5.00% (1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities. $32,495 $197,076 $197,076 $197,076 Prepared by: Springsted Incorporated (printed on 07/18/2001 at 323 PM) Phase 2 071801a.xls o � -' Market Value Analysis Report City of St. Paul, Minnesota Proposed Tau Increment (Housing) Financing District North Quadrant Phase Two Scenario A- Phase Two Total Project (25 years, 8°/, noYe) Assumotions Present Value Date P.V. Rate - Gross T.I. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 22 23 24 25 26 08/01/01 8.00% $16,738.822 2,087,603 $14,651,219 0 $14,651,219 Annual Present Gross Tax Value @ Year Increment 8.00% 2003 28,564 24,177 2004 231,542 181,463 2005 231,542 168,021 2006 231,542 155,575 2007 231,542 144,051 2008 231,542 133,381 2009 231,542 123,501 2010 231,542 114,352 2011 231,542 105,882 2012 231,542 98,039 2013 231,542 90,777 2014 231,542 84,052 2015 231,542 77,826 2016 231,542 72,061 2017 231,542 66,724 2018 231,542 61.781 2019 231,542 57,205 2020 231,542 52,967 2021 231,542 49,044 2022 231,542 45,411 2023 231,542 42,047 2024 231,542 38,933 2025 231,542 36,049 2026 231,542 33,378 2027 231,542 30,906 2028 0 0 $5,585,572 $2,087,603 Prepared by: Springsted Incorporated (7/19/01) dl�� d : O C N a � m � i C � U y N t�p O � O � ; N, f N LL d C m �n V C C �6 d rC y 1 r � a ^o R S q R 0 C R I � w � Q 3 O � .0 �- T V Y 4� " G O '! 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EXHIBIT D-1 .p (.� G] (7 � c� � a. c°'. n N - C N N ' � t ° c 10 � U c a C7 6 � F' >. x �. U Z = m � F- e e o ° O ✓� ('� °� U C � O O �" • � � O t f�i U ti � � O 'u O Q 6 � 'J X 2 Q F 3 N U 9 � N U L � O d D J T a S m x T m F N Z A a� r- z 0 o e m p� 0 O N r � � �O O [7 t� (� V � � N a � � (��J V O ' N � c� o r � � N II N N N N p m 61 G> U N N A Q Q N N U� 7 F �U N N N N d Pj d � @ � ¢ U Z m a ei o m x N q F' � % N N � � Z O N � � rn O y L� J � � 7 LL � F 3 0 V O m X d �O N A F x d a � � Z C F (7 O N m m � �(f K � � M p�i N , r o � ai � N � e N M Q e e e e � � N n n i� � N <o o ni t� m c� ,r � a N r N C � N t'J �0 • N n 0 ^ � � N � 'J a a d O N U N � m � O u+ ae � T � � t O U ¢ �? O t- N � � O � R m U d O � X L N N R �y - t � ¢ U � � X 0 q C � � � �it N � � y o �' v A N a d � � ] t O O � ¢ N T � d >` @ L � � U u f0 L� N . — y t F 3 '� y L U . p N � L 0. T � � H C r=�gN '? 'n ry C ro m U 7 "" � @ y N d V a' d U � N x �^.� � N R V U' � = .� ~ d f LL � V � � N p a J j O a o L dt � 3 2��; T O d tC U 4 h � � d y � x U � .� � � � Q n a �n p � x U� A A r F�- � X O V d G O F�i Q d t Z � S o a � Z y p T>' j' o E x R a m �� L m u�i m U x a m E`. U a A � � � N \ K C @ N m F- �t0 O � y L N N d U C m p Z � CJ y ° > >. o ° m E 6 V 'o 'o d � �O N � N � d C fJ T�' 16 a O y V � 9 m � d � c> > � V m ° � 3 a d = d s d� U j� V C t m L O d C � = � 3 3 ¢ N N C � y u E E U v � � N y d A A N O C m p L � `o � o O r V U j T T '� c d O N 9 N W d � d LL y F t d m C _ �N 6 � V ,p T '� U � a ° �p N U y A o V C y R '_ O ^ tl C � A �� - 0 SS y U � �' O C V c n E 1� f � � O 0 N t�. 0 V O O _ N � N a a m m a N A A c m o r � `o a e C N U n T � � T � C C � N b m V � L d LL � H � a a � U j C 6 H U � � T � U � F d Z c ,q N J y K C L o U = N 0 L > � I � i !� o y i y 3 d L C > � � U � n i E ic F .� Q � .1� O N N N � � N � a U a � t N t d n a ot-1 N U p . 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T Q 2 f � N t N N F ' ( Z H Z i ( d a�i m m i s r � N '� � a�c�z,` L 0 � � L � 3 ° m 'o a` o m x ` o a m : � � � 'i O X � � o H Z j N � O : N @ � � ox; N f O N X ` N � h � d � O H Z N j ��i N • I f ', o e o 0 �O N t� � m v st m N 6J I` 1� (7 M tn V N N � � � N ul � r N � N m OJ r �+i co � � � n N N N N n n � � r n r � co w m m e N m M � � N v �n m � n N � o n �o r oi �o � c�i � a a o o I e m e u�i m n [V tA 1� h t0 e� e� �n m h � N < YJ (O A N � � o r � 1� t'J (p a � � � T a a o �A N � N O N � N � L N U ¢ N O F y > ^' o d � d V o � x � v � d N � N N CL N . ; m x p x rn s � � F (p X � O O U ^@' N � V � y Y L L : 0 �, Q m >°. o m N V V N {�p � U - lp L C � N O ? ~ ?� N � o 6 T N � N O � c L - � y N N � C � {p V 3 y- ° m `-' _ � U � p� N O � � F � H F' U � O � � N � r � � O � N L C �i .`T. !/j O�+ N N U V� T 9 m m � � � 'V N � i� N N a a v� d� U •� - f0 N � LL K V 9 K m F 1� u X O V d � O F 3`o m 5 Z o L � N J � � N N Z ` ° '' 2 ' m = n � ?= m a�i m U m m > m " U ° :c U o m o m c G a a s�� m o N � C � � C N O Z � N � U�O d N N E d � O N J ^ O d N d A 4 C V ^'O ry N n U1 m m o o V ` o c � � � °� n x 3 a � �! V� U� N U C d L O N C d - � 3 3� m � N G C E E m N m Y h � N @ x .� 2 O C � � O a e C � U ^ � T t 0 H 'o ` N U � � d LL y H � N � V j C N U � L T � V � N C ( N U r C O � V L � � " o � II C a X �U � a °' � y L X ^ � C O L U m m a. H E L- F- ... .�. O � N m 0 d U a v�i C . � a � `m N a Council File # d�� 7�3 Resolution # Green Sheet # L11,303 � S) Presented By Referred To Committee: Date RESOLUTION APPROVING THE AMENDMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 (NORTH QUADRANT) 5 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the 6 "City") as follows: 7 Section 1. Recitals 8 1.01. On June 23, 1999, the Housing and Redevelopment Authority of the City of 9 Saint Paul, Mivnesota (the "Authority") established the North Quadrant Redevelopment 10 Project Area (the "Redevelopment Project Area") and adopted a redevelopment plan therefor 11 (the "Redevelopment Plan"). 12 1.02. On August 9, 2000, the City Council approved the creation, within the 13 Redevelopment Project Area, of Taac Increment Financing District No. 1(North Quadrant) (the 14 "T� Increment District") and the adoption of a Ta7c Increment Financing Plan therefor (the 15 "Tax Increment Plan"), a11 pursuant to and in accordance with Minnesota Statutes, Secrion 16 469.174 through 469.179 (the "Tas Increment Act") and Laws of Minnesota 2000, Chapter 17 490, Article 11, Secrion 40 (the "Special Law"). 18 1.03. On October 25, 2000, the City Council approved an amendment to the T� 19 Increment Plan, to, among other things, authorize the issuance of bonded indebtedness. 20 1.04. The Authority has determined that it is necessary to amend the Tax Increment 21 Plan in connection with a second phase development, to add additional properiy to the Taa� 22 Increment District, to increase the authorized expenditures and to authorize additional bonded 23 indebtedness (the "Amended Plan"). The Authority has performed a11 actions required by law 24 to be performed prior to the amendment of the Tas Increment Plan, including, but not lnnited 25 to, notification of Ramsey County and Independent School District Number 625, which have 26 taxing jurisdiction over the properry included in the Tax Increment District, and has requested z7 that the City approve the Amended Plan following the holding of a public hearing upon 28 published and mailed notice as required by law. 29 Section 2. Findings for the Amendment of the Tas Increment Financing Plan. 30 2.01. The City Council hereby finds that the Tax Increment Plan for Tax Increment 31 Financing District No. 1(North Quadrant) as amended by the Second Amendment dated � 1`� 32 August 8, 2001 (the "Amended Plan") is intended and, in the judgment of the CiTy Council, its 33 effect will be, to cany out the objecrives of the Redevelopment Plan and to create an unpetus 34 for the construction in the City of affordable and mixed income housing, will increase 35 employment and otherwise promote certain public purposes and accomplish certain objectives 36 as specified in the Redevelopment Plan and Tax Increment Financing Plan, as amended. 37 2A2. The City Council hereby reaffirms its previous findings that TaY Increment 38 Financing District No. 1(North Quadrant), as enlazged by the Second Amendment dated 39 August 8, 2001, qualifies as an"housing district" within the meaning of the Tax Increment Act 4o and the Special Law for the following reasons: 41 The property to be included in the T� Increment Disirict is located in 42 the Northeast quadrant of the City, i.e. within the 15 acre site bounded 43 by Interstate 44 on the north and east, Jackson Street on the west and 44 Seventh Street on the south, together with the west side of Jackson 45 Street to midblock between Interstate 94 and South Street. 46 Twenty percent of the housing units the Tax Increment District will be 47 occupied by individuals whose family income is equal to or less than 50 48 percent of area median gross income and an additiona160 percent of the 49 units will be occupied by individuals whose family income is equal to or 50 less than 115 percent of area median gross income. Twenty percent of 51 the units in the Tas Increment District will not be subject to any income 52 limitations. 53 Family income means the median gross income for the City as 54 determined under section 42 of the Internal Revenue Code of 1986, as 55 amended. The income requirements will be satisfied if the sum of 56 qualified owner-occupied units and qualified residential rental units 57 equals the xequued total number of qualified units. Owner-occupied 58 units will initially be purchased and occupied by individuals whose 59 family income satisfies the income requirements. For residential rental 60 property, the income requirements apply for the duration of the Taz� 61 Increment District. 62 The fair mazket value of the improvements which aze conshucted in the 63 Tax Increment District for commercial uses or for uses other than 64 owner-occupied and rental mixed-income housing will not consist of 65 more than 20 percent of the total fair market value of the planned 66 improvements in the development plan or agreement. The fair mazket 67 value of the improvements will be determined using the cost of 68 conshuction, capitalized income, or other appropriate method of 69 estimating mazket value. 70 2.03. The City Council hereby reaffirms the following findings: �1 (a) The City Council fi.irther fmds that the proposed development, in the 72 opinion of the City Council, would not occur solely through private investment within �3 the reasonably foreseeable future and, therefore, the use of tax increment financing is 74 deemed necessary. The specific basis for such finding being: 75 The parcels on which the development will occur would not be Q�.'1'�3 76 developed in the reasonably foreseeable future becausethey 77 have been used for surface pazking, which use generates 78 significant income to the current owner of the properry 79 considering the owner's min;mal investment in the properry. 80 (b) The City Council fiuther finds that the Taac Increment Financing Plan, 81 as amended, conforms to the general plan for the development or redevelopment of the s2 City as a whole. The specific basis for such finding being: 83 The Tax Increment Financing Plan will generally compliment and serve 84 to unplement policies adopted in the City's comprehensive plan. The s5 development contemplated is in accordance with the e�sting zoning for 86 the property. 87 (c) The City Council fi�rther finds that the Tax Increment Financing Plan, 88 as amended, will afford masnnum opportunity consistent with the sound needs of the 89 City as a whole for the development of the T� Increment District by private 90 enterprise. The specific basis far such fmding being: 91 The proposed development to occur within the Ta�c Increment DisUrict is 92 housing. The development will increase needed affordable and mixed 93 income housing in the City and will increase the mazket valuation of the 94 City. 95 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, 96 Subdivision 3(2), the City Council hereby finds that the increased mazket value of the 97 property to be developed to the properiy added by the Second Amendment to the Tax 98 Increment District that could reasonably be expected to occur without the use of tax 99 increment financing is $-0- , which is less than the market value estimated to result 100 from the proposed development (i.e., $16,738,822) after subtracting the present value lol of the projected tax increments for the maximum duration of the Tax Increment District 102 (i.e., $2,242,119). In making these findings, the City Council has noted that the 103 property has been undeveloped for many yeazs and would likely remain so if taY 104 increment financing is not auailable. Thus, the use of tax increment financing will be a 105 positive net gain to the City, the School District, and the County, and the tax increment 106 assistance does not exceed the benefit which will be derived therefrom. 107 2.04. The provisions of this Section 2 aze hereby incorporated by reference into and l08 made a part of the Amended Plan. 109 Section 3. Approval of Amendment of the Tax Increment Financing Plan. 110 3.01. The Tax Increment Plan for Tax Increment Financing District No. 1(North 111 Quadrant) as amended by the Second Amendment dated August 8, 2001, is hereby approved 112 and the Amended Plan is hereby adopted. 113 3.02. The staff of the City, the staff of the Authority and the City's and Authority's I 14 advisors and legal counsel aze authorized and directed to proceed with the impiementation of 115 the Ta�c Increment District and the Amended Plan and for this purpose to negotiate, draft, 116 prepare and present to the Boazd of Commissioners of the Authority for its consideration all 117 fiirther plans, resolutions, documents and contracts necessary for this purpose. I 18 3.03. The staff of the Authority is hereby directed to file a copy of the Tax Increment i 19 Financing Plan, as amended, with the County Auditar of Ramsey County and to request the 0 �� '�' � 120 County Auditor to certify the original tax capacity of the property to be added to the Tax 121 Increment Financing District by the Second Amendment. Requested by Department of: Plannina & Economic Development 1 Adopted by Council: Date � a'D l�1 Adoption Certified by Council Secretary Form Approved by City Attorney �� Approved by Mayor for Submission to Council Approved by Mayor: Date __�� "/ ( (/�/ � � � T Rv. <��.il�%�I��I�/I'/� (�a!!� o � -1�3 DATE INI7NTm 7/19/O1 GREEN SHEET No 111303 :,.,,,, f BE OtJ COUNCIL AGENDA BV (DAlE) /�SSIGN August � xuresc w2 Public Hearing °O �" G oeoErz TOTAL # OF SIGNATURE PAGES �G ov.rt�o.�� -�+ arccauKa � OiYAiTd11E1'� ❑ tltYCIFPK ❑ F�wxw�smvrFSOac y ❑ tNnxo��mnrKCr¢ _ � rnvon �onwassr�wn �/ '/ � S- �� (CLIP ALL LOCATIONS FOR SICaNATURE) Resolution approving Amendment to Tax Increment Financing District No. 1(North Quadrant) PLANNING CAMMISSION CIB COMMITTEE CIVIL SERVICE COMMISSION Has this persoNfrm ever woilced untler a con6aU for fhis tlepartment? VES NO Has this pe�so�rm ever been a city empbY�7 VES NO Does this persaNfirm possess a sldll not nortnallyposses,aed by a�ry curtent cRy employee? VES NO Is this person/fiim a targeted vendoR YES NO ��ain an ves answere on seoarate sheet anA attach W areen sheet Expanding district to allow construction of 122 unit rental building and 38 for sale townhomes. AMOUNT OF TRANS.ACTION S —n— SOURCE INFORM4ilON (IXPLfJNj COST/REVENUEBUDGETED(CIRCLEONE) VES NO ACTNITY NUMBER ! � � � hs : J�L 2 �3 2D�1 o � -113 Interdepartmental Memorandum CTTY OF SAINT PAUL TO: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmembez Harris Councilmember Lantry Councilmember Reiter FROM: Brian Sweeney�/,�.....-,�- Allen Carlson � � DATE: July 18, 2001 RE: PUBLIC HEARING: RESOLUTION APPROVING THE SECOND AMENDMENT OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTA QUADRANT) Purpose The purpose of this public hearing is to receive public comment and request the City Council to approve a resolution to amend the Tax Increment Financing Plan (the "Plan") and expand the tax increment financing district for the Tax Increment Pinancing District No. 1(North Quadrant) (the "District") originally adopted by the Housing and Redevelopment Authority of the City of Saint Paul on August 9, 2000. The original District boundaries are bounded by 7"' 8' Wacouta and Sibley Streets. The expanded area will include the block bounded by 8�`, 9 Temperance and Sibley Streets. Background The original District was adopted to allow taY increments to be generated to assist in the financing of a proposed ll4 mulfifamily rental building with 10,000 square feet of commercial space (the "Sibley Pazk Aparhnents") and a 38 unit for sale town home development (the "Essex on the Park"). Twenty-two percent of the rental units wiil be affordable to households at or below 30% of the area median income and 18% of the rental units will be affordable to households at or below 50% of the area median income. The District is being expanded to allow and assist with tas increment financing the construction � 1-'1q3 of 122-unit rental building (the " Sibley Court Apartments") and 38-unit for sale town home/condominium building (the "Dakota") (together the "Phase II Project"). The rental building will have 25 units with rents affordable to households at or below 30% of the azea median income and an additiona126 units with rents affordable to households at or below 50% of the azea median income. Affordable units for the Phase II Project account for 32% of the total units to be developed. The Phase II Project is a continuation of Sherman Associates, Inc. and the Lander Group's (the "Developer") Phase I Project, which currently under construction. Total estimated cost of the Phase II Project is $27.5 million of which the Developer is seeking an estimated $1.82 million of present value tax increment funds to assist in the construction of the structured underground pazking ramp. The Developer is also seeking low income housing taY credits to assist in the financing of the affordable rental housing units. No other City financing is being pledge to the project. Staff is proposing the following amendments to the Plan: Amend Subsection 9 of the Plan which states the proposed budget for the Plan. The budget is being amended to inciude increments that will be generated from the expanded district boundary, which increments will be used to pay administrative costs, the pazking ramp and interest resulting from the issuance of bonds andlor pay-as-you-go note. Amend Subsection 10 to allow up to $1 million of added bonded indebtedness to finance public costs related to the construction of the Dakota development. Amend Subsection 5 to include Phase II parcels into the District. The added area is bounded by 8�', 9"' , Temperance and Sibley Streets. Recommendation Staff recommends approval of the attached resolurion amending the Tax Increment Financing Plan for the Tax Increment Financing District No. 1(North Quadrant) and expanding its boundaries. Statement of the Council President Being duly authorized by the City Council to conduct this Public Hearing, the hearing is now open. This Public Heazing is called for the proposed purpose to consider the following: Second amendment of the Tax Increment Financing Plan for the Tax Increment Financing District No.l (North Quadrant). Notice of time, place, and purpose of this hearing was published in the Saint Paul Pioneer Press on Friday, July 20, 2001. The affidavit of the publication of the Notice of Public Hearing will be made a part of these proceedings. Is there anyone who wishes to be heazd on this item? If not, the Chair will declare this Public Hearing adjourned. o� -11� Attachments Resolution approving second amendment to the T� Increment Financing Plan for the T� Increment Financing District No. 1(North Quadrant) Second Amendment of the T� Increment Financing Plan for the Ta�c Increment Financing District No. 1(North Quadrant) K:\Shazed�Ped�CARLSOAP\sherma�\CC TIF AMEND2 RPT 102500.wpd o � -'113 TAX Ii�tCRE�tENT FNANCNG PLAN for the establishment of TAX INCREMENT FNANCING DISTRICT NO. 1(NORTH QUADRANT) (a housin� district) within the NORTH QUADRANT REDEVELOPMENT PROJECT AREA HOUSIl\TG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL RAMSEY COUNTY STATE OF MINNESOTA Adopted: August 9, 2000 Amended: October 25, 2000 Second Amendment: August 8, 2001 This document �vas drafted by: BRIGGS AND MORGAN (MMD) Professional Association 22�0 First National Bank Bld�. St. Paul, NIN 55101 (651)223-6625 u�szu�3 � � �� TABLE OF CO�iTE\TS (for reference purposes only) TAX IiVCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCNG DISTRICT Iv�O. 1(�IORTH QUADRANT) Subsection 1. Subsection 2. Subsection 3. Subsection 4. Subsection 5. Stibsection 6. Subsection 7. Subsection 8. Subsection 9. Subsection 10. Subsection 11. Subsection 12. Subsection 13. Subsection 14. Subsection 15. Subsection 16. Subsection 17. Subsection 18. Subsection 19. Subsection 20. Subsection 21. Subsection 22. Subsection 23. Subsection 24. Subsection 25. Subsection 26. Subsection 27. Subsection 28. Subsection 29. iz�szi i�s P_aae Fonvard; Background ...................................................................................... 1 StatutoryAuthority .......................................................................................... 1 Statement of Objectives ................................................................................... 1 Redevelopment Plan Overview ................................:....................................... 2 Parcels to be Included in Tax Increment Financing District No. 1 .................. 2 Parcelin Acquisition ........................................................................................ 3 Devetopment Activity in Tax Increment Financin� District No. 1 for which Contracts have been Signed .................................................................. 3 Other Specific Development Expected to Occur within Redevelopment Area.................................................................................................................. 4 Estimated Cost ofProject .................................................................................4 Estimated Amount of Bonded Indebtedness .................................................... 5 Sourcesof Revemie ..........................................................................................6 Estimated Captured Tax Capacity and Estimate of Tax Increment ................. 6 Type ofTax Increment Financing District .......................................................6 Duration of Tax Increment Financin� District .................................................7 Estimated Impact on Other Taxin� Jurisdictions .............................................7 State Taz Increment Financing Aid ................................................................. 8 Modification of Tax Increment Financin� District and(or Tax IncrementFinancing Plan ................................................................................ 8 Modifications to Tax Increment Financing District ......................................... 8 Administrative Expenses .................................................................................9 Limitation of Increment .................................................................................10 Use of Tax Increment ..................................................................................... l 1 Notification of Prior Planned Improvements ................................................. l l Excess Increments .................................................................................. Requirements for Agreements with the Developer ........................................12 Other Limitations on the Use of Tax Increment ............................................ i3 County Costs ........................................................................................ Assessment Agreements ................................................................................ Administration of the Tax Increment Financing District ...............................14 Financial Reporting Requirements ................................................................14 ii " o �-'1q� EXHIBIT A-1 - Map of Tax Increment District No. 1, as ori�inally adopted EXHIBIT A-2 - Map of Tax Increment District No. 1, as enlarged by Second Amendment EXHIBIT B- Map ofNorth Quadrant Redevelopment Project Area EXHIBIT C-1 - Projected Tax Increments from Phase 1 EaHIBIT G2 - Projected Tas Incremeuts from Phase 2 EXHIBIT D-1 - Estimated Impact on Other Taxin� Jurisdictions of Phase 1 EXHIBIT D-2 — Estimated Impact on Other Taxin� 7urisdictions of Phase 2 �2782��v3 111 Dl• TAX INCREMENT FNAiv'CING PLAivT FOR TAX INCREMENT FINAivTCING DISTRICT NO. 1(NORTH QUADRANT) Subsection 1. Fonvard: Backeround. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), and its staff and consultants have prepared the follo�vin� information for the establishment of Tax Increment Financin� District \�o. 1(North Quadrant), a housin� district (the "Tax Increment DistricP'). The Tas Increment District is located �vithin thz 1Vorth Quadrant Redevelopment Project Area (the "Redevelopment Project Area") established by the HRA pursuant to the North Quadrant Redevelopment Plan adopted by the HRA on June 23, 1999 (the "Redevelopment Plan"). The Redevelopment Plan was approved by the Planning Commission on June 23, 1999. The Tax Increment Financin� Plan was originally adopted on Au�ust 9, 2000, and was amended on October 25, 2000, to amon� other thin�s, authorize the issuance of bonded indebtedness. On August S, 2001, the HRA amended the Tax Inccement Financin� Plan in connection with a second phase of development, to add additional property to the Tax Increment Financin� District, to increase the authorized expenditures and to authorize additional bonded indebtedness. Subsection 2. Statutorv AuthoritY. There exist areas within the City of Saint Paul (the "City") where public involvement is necessary to cause development to occur. To this end, the HRA has certain statutory powers pursuant to special legislation (Laws of Minnesota, Chapter 490, Article 11, Section 40 (the "Special Law"), and Minnesota Statutes, Section 469.174 throu�h 469.179 (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to a project. Subsection 3. Statement of Objectives. The Tax Increment Financing District, as originally adopted, consists of 2 parcels of land and adjacent and internal rights-of-way. In connection �vith the second amendment, Z parcels were added to the Tax Increment Financin� District. A map showin� the boundaries of the Tax Increment District, as originatly adopted, is attached as Exhibit A-1. A map showin� the boundaries of the Tas Increment District, as expanded by the Second Amendment, is attached as Exhibit A-2. The Tax Increment Financin� District is bein� created to facilitate a 38 unit owner occupied to�cnhome development (the "Phase 1 Owner Occupied DevelopmenY') and a 114 unit rental apartment facility (the "Phase 1 Rental Development"). Phase 2 of the development is a 38 tmit owner occupied townhome development (the "Phase 2 Owner-Occupied DevelopmenY') and a 122 unit rental apartment facility (the "Phase 2 Rental Development"). The tax increment financin� plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the North Quadrant Redevelopment Project Area. The followin� are some of the objectives bein� facilitated by this Tax Increment Financin� Plan. A. Provide Affordable Hot�sine for Saint Paul Residents. i. Phase 1 De��elopment. The available housing in the downtown area of the city �vill expand by more than 152 units �vith the completion of the housin� development contempiated by this Tax Increment Financin� Plan. 22 of the units in the Phase 1 Owner- 127821Iv3 b � -'14� Occupied Development �vill be affordabte to households between 80% and 115% of area median income. A sufficient number of units in the Phase 1 Rental Development �vill be affordable to low and moderate income persons such that the requirements of the Special La�v are met. 2. Phase 2 Develoqment. The available housin� in the do�vntown area of the City �vill expand by more than 160 units with the completion of the Phase 2 Development. A sufficient number of units in Phase 2 will be affordable to ]ow and moderate income persons such that the requirements of the Specia] Law are met. B. To Redevelop Underused Propertv. The Tax Increment District is a site that has been underutilized for many years. The majority of the area comprisin� the site has been used for surface parking. New commercial, cultural and recreational investments are jeopardized by lack of development in the downtown area. In order to protect past investments and encoura�e new development in the downtown area new housin� development needs to be created to encoura�e additional private investment. C. Expand the Tax Base of the Citv of Saint Paul. It is expected that the taxable market value of parcels in the Tax Increment District will increase by approximately $21,280,000 and $16,738,822 as a result of the Phase 1 Development and Phase 2 Development, respectively. The activities contemplated in the Redevelopment Plan and this Tax Increment Financin� Plan do not preclude the undertakin� of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Tax Increment District and the Redevelopment Project. Subsection 4. Redevelopment Plan Overview. Property to be Acquired - Selected propeRy located within Tax Increment Financin� District or Redevelopment Project Area may be acquired by the HRA. 2. Relocation - if necessary, complete relocation services are a�•ailable pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to a development and completion of the necessary legal requirements, the HRA may sell or assist a developer with the cost of selected properties within Tax Increment Financin� District or Redevelopment Project Area, or may lease land or facilities to a developer. Subsection 5. Parcels to be Included in Tax Increment Financine District No. 1. The following parcels located in the City of Saint Paul, Ramsey County, Minnesota: tz�xzii�s o � -�» A. Phase 1 Development. PN NO. 312922440028 312922440029 B. Phase 2 Development. PN NO. 3129224�0009 312922440003 ADDRESS 221 7` Street East 440 Sibley Street ADDRESS 205 Eighth Street East 194 Ninth Street East FURTHER INFORMATION REGARDNG THE IDENTIFICATION OF THE PARCEL TO BE INCLUDED IN TAX 1NCREMENT FINANCNG DISTRICT NO. 1 CAN BE OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA. Subsection 6. Parcel in Acquisition. The HRA may finance all or a part of the costs of acquisition of the parcels identified in Section 5 of this Tax Increment Financin� Pian. The following are conditions under which properties not designated to be acquired may be acquired at a fiihire date: (1) The HRA may acquire propeRy by gift, dedication, condemnation or direct purchase from �villing sellers in order to achieve the ob,}ectives of the tax increment financing plan; and (2) Such acquisitions will be undertaken only when there is assurance of funding to Finance the acquisition and related costs. Subsection 7. Development Activitv in Tax Increment Financin� District No. I for which Contracts have been SiQned. The following contracts have been or will be entered into by the HRA and the persons named below: Phase 1 Development: No development a�reements have been entered into at the time the Tax Increment Financing Plan �vas originally adopted. However, the HRA anticipates enterin� into a devetopment agreement with an entity to be formed by Sherman Associates, Inc. and The Lander Group (the "Developer") with respect to the development of a 38 unit owner occupied townhome development and a 114 unit rental apartment facility. Phase 2 Devetopment: No development a�reements have been entered into at the time the Second Amendment was adopted. However, the HRA anticipates entering into a iz�szi i�3 O �-1g3 development agreement �cith an entity to be formed by Sherman Associates, Inc. and The Lander Group (the "Developer") with respect to the development of a 38 unit owner occupied totivnhome development and a 122 unit rental apartment facility. Subsection 8. Other Specific Development Expected to Occur within Redevelooment Area. Although no specific additional developments have been identified at this time, the HRA expects that the acquisition and construction of the above housing development will encoura�e additional development in the Redevelopment Project Area. Subsection 9. Estimated Cost of Proiect. The HRA has determined that it will be necessary to provide assistance for certain public costs of certain housin� activities. To facilitate thz development of the Tax Increment Financing District, this Tax Increment Financing Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Tax Increment Financin� District is otttfined in thz followin� table: PROJECTED SOURCES PHASE ONE PHASE TWO TOTAL OFFCiNDS Ownership Rental Ownership Rental SOURCES TaxInerementRevenue 3,731,000 6,080,000 1,852,8t7 3,031,755 14,695,572 TIF Bond Proceeds 1,283,000 701,893 1,984,000 Issuer Bond Equity 36,000 36,000 Metropotitan Council Grant 450,000 450,000 Metropalitan Council Loan 500,000 500,000 HRA Enterprise Fund Loan 250,000 250,000 Federal HOME Loan 750,000 750,000 750,000 TOTALREVENUE $S,SOQ000 $7,580,000 $2,553,817 $3,031,755 $18,665,572 1278?IIv3 o � -'1 �� PROJECTED USES OF pHASE ONE PHASE TWO TOTAL FUNDS Ownership Rental Ownership Rental USES Site 300,000 84Q000 1,14Q000 Improvements/preparation costs Parkingfacilities 95Q000 1,600,000 666,000 953,98t 4,169,981 Bond principal payments 1,283,000 701,000 1,984,000 Bond interest payments 2,136,000 886,659 3,022,659 Pay-as-you-go interest 3,300,000 1,763,006 5,063,006 Cost of Issuance 36,000 35,000 35,000 Administrative 345,000 34Q000 265,158 314,768 1,264,926 TOTAL EXPENSES $5,500,000 $7,580,000 $2,553,817 $3,031,755 $18,665,572 Estimated costs associated «�ith Tax Increment Financin� District are subject to changz and may be reallocated between line items by the HRA. The cost of all activities to be financed by the tax increment will not exceed, without formal modification, the budget for the tax increments set forth above. Subsection 10. Estimated Amoimt of Bonded Indebtedness. The HRA may issue its tax increment revenue bonds in an amount not to exceed $1,283,000 to finance public costs of the �vszii�; p ► -1°t3 Phase 1 O«�ner Occupied Development and 51,000,000 to finance the public costs of the Phase 2 Owner Occupied Development. A porcion of the public costs may be financed on a pay-as-you- �o basis iF and to the extent a por[ion of the proceeds of the revenue bonds are applied to the extra ordinary redemption of the bonds. The expenditures authorized by this Tax Increment Financin� Plan for the Rental Development will be paid for on a pay-as-you-�o basis. Subsection 1 l. Sources of Revenue. The costs outlined in Section 9 above «�ill be fi��anced through the annual collection of tax increments, and the ]oans or grants given by or throu�h the City or HRA as set forth above. The total cost of thz Phase 1 Rental Development and Phase 2 Rental Development are estimated to be approximately S 17,000,000, and S 18,180,000 respectively. The total cost of the Phase 1 Owner Occupied Dzvelopment and the Phase 2 Owner Occupied Development are estimated to be approximately 59,500,000 and S 10,792,000 respectively. Additional sources of funds for the Phase 1 Rental Development will be assistance directly from the Minnesota Housin� Financing Agency in the amount of 5700,000 and from the Family Housin� Fund in the amount of �150,000. The Developer will receive a�450,000 grant directly from the Minnesota Housin� Financing Agency for the Phase 1 Owner Occupied Development. The Developer will contribute equity or obtain private financin� for the remaining costs of the Developments. Subsection 12.Estimated Captured Tar Capacit�nd Estimate ofTax Increment. The most recent tar capacity of Tac Increment Financing District is estimated to be $10,577 as of January 2, 1999. In connection with the additional property added to the Tax Increment Financin� District by the Second Amendment, the most recent tax capacity is 58,812. The estimated captured tax capacities of Tax Increment Financin� District at completion of Phase 1 Development and Phase 2 Development is estimated to be �254,812 and �179,400, respectively. The HRA elects to retain all of the captured tax capacity to finance the costs of Tax Increment Financing District No. 1. The HRA elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, subd. 3(a). Subsection 13. Tvpe of Tar Increment FinancinQ District. Tax Increment Financin� District I�'o. 1 is a housing district established, pursuant to Minnesota Statutes, Section 469.174, Subd. 10, and the Special Law, and �vill satisfy the requirements described belo�v. The Tax Increment Financin� District consists of a project, or a portion of a project, intended for occupancy, in part, by persons of low and moderate income as defined in Minnesota S[atutes, Chapter 462A, Title II, of the National Housing Act of 1934; the National Housin� Act of 19>9; the United States Housin� Act of 1937, as amended; Title V of the Housin� Act of 1949, as amended; any other similar present or fiiture federal, state, or municipal legislation, or the regulations promulgated under any of those acts. Twenty percent of the units in the development in the Tax Increment District must be occupied by individuals �vhose family income is equal to or less than 50 percent of area median gross income and an additiona160 percent of the units in the development in the Tax Increment District must be occupied by iz�xz<<�3 6 - 0 t -'117 individuals whose family income is equal to or less than 115 percent of area median gross income. Twenty percent of the units in the development in the Tax Increment District are not subject to any income limita[ions. Family income means the median gross income for the area as detemtined under section 42 of the Intemal Revenue Code of 1986, as amended. The income requirements are deemed to be satisfied if the sum of qualified otivner-occupied units and qualified residential rental units equals the required total number of qualified units. Owner- occupied units must be initially purchased and occupied by individuals whose family income satisfies the income requirements of this subdivision. For residentia] rental propzrty, the income requirzments of this subdivision apply for the duration of the Tax Increment District. The development in the Tax Increment District does not qualify if the fair market value of the improvements �vhich are constructed for commercial uses or for uses other than owner- occupied and rental mixed-income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or a�reement. The fair market value of the improvements may be determined usin� the cost of construction, capitalized income, or other appropriate method of estimatin� matket value. In establishin� Tax Increment Financin� District, the determination has been made that the anticipated development would not be reasonably expected to occur solely throu�h private investment within the reasonably foreseeable future and that therefore the use of tax increment Cinancin� is deemed necessary. In makin� this determination the HRA has relied on its own knowled�e of the development history of the area and on representations madz by the Developer. The HRA and the City have detemiined that the proposed development of the Tas Increment District would not reasonably be expected to occur solely throu�h private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financin� would be less than [he increase in the market value estimated to result from the proposed development after subtractin� the present value of the projected tax increments for the maximum duration of the district permitted by the plan. Subsection 14. Duration of Tas Increment Financin� District. The duration of Tax Increment Financing District will be 25 years from the receipt of the first tax increment. The date of receipt of the first tax increment is expected to be July of 2002. Attached as Exhibit C-1 is the projected receipt of tax increments from the Phase 1 Development in the Tax Increment Financing District. Attached as Exhibit C-2 is the projected receipt of tas increments from the Phase 2 Development in the Tas Increment District. Subsection I5. Estimated Impact on Other Taxina Jurisdictior�s. The estimated impact of Tax Incrzment Financing District on the other taxin�jurisdictions assumes construction �vould have occurred without the creation of Tax Increment Financing District. If the construction is a result o€ tax increment financin„ the impact is $0 to other entities. Norivithstandin� the fact that the fiscal impact of the other tasin� jurisdictions is $0, due to the fact that the construction would not have occurred without the assistance of the HRA, the estimated impact of Tas Increment Financin� District would be as set forth on Exhibit D if the "but for" test «as not met. 127821Iv3 0�-�1 Subsection 16. State Tax Increment Financina Aid. Pursuant to Minnesota Statutes, Section 273.1599, for tax increment financin� districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financin� aid (RISTIFA) applied to the municipality's Local Go�•emment Aids (LGA) first and, Homestead and A�ricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifyin� captured tax capacity (QCTC) ofTax Increment Financin� District. Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6, the HRA may choose an option to the LGA-HACA penalty, Ta� Increment Financin� District is exempt from the LGA- HACA reduction if the HRA elects to make a qualifying local contribution at the [ime of approving the Plan. To qualify for the exemption in each year, the HRA must make a qualifyin� local contribution to the project of a certain percentage. The local contribution for a housing district is 5 percent. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the HRA must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the HRA or the City, such as the general fund, a property tax levy, or a federal or state grand-in-aid which may be spent for general government purposes. The local contribution may not be made, directly or indirectly, �vith tas increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general govemment purposes. Tlie HRA elects to make the annual loca] contribution to the project to exempt itself from the LGA-HACA penalty. The HRA will pay for costs of the project described in this Plan, in an amount equal to 5 percent of anmial tax increment for Tax Increment Financing District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development. The contribution may also be made in the form of public improvement financed by the City or other unit of govemment with unrestricted funds. Subsection 17.Modification of Tax Increment Financin� Distric[ and/or Tax Increment Financin� Plan. As of Au�ust 9, 2000, no modifications to Tax Increment Financin� District No. 1 or the Tax Increment Financin� Plan therefore have been made. On October 25, 2000, the Tax Increment Financing Plan �vas amended and restated as set forth herein. Subsection 18.Modifications to Tax Increment Financine District. In accordance �vith Minnesota Statutes, Section 469. 175, Subd. 4, any: reduction or enlargement of the geographic area of the Tax Increment Financing District; increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination �vas not a part of the ori?inal plan, or to increase or decrease the amount of interest on the debt to be capitalized; (?78?IIv3 0�=�q7 3. increase in the poRion of the captured net tax capacity to be retained by the HRA; 4. increase in total estimated tax increment expenditures; or desi�nation of additional property to be acquired by the HRA, shall be approved upon the notice and after the discussion, public hearing and findin�s required for approval of the original plan. The geo�raphic area of District may be reduced, but shall not be enlarged after five years followin� the date of certification of the original net tax capacity by the county auditor. The requirements of this para�raph do not apply if (1) the only modification is elimination of parcel(s) from Tax Increment Financin� District and (2)(A) the cunent net tax capacity of the parcel(s) eliminated from the Tax Increment Financin� District equals or esceeds the net tax capacity of those parcel(s) in the Tax Increment Financin� DistricYs original net tax capacity or (B) the HRA agrees that, notwithstandin� Minnesota Statutes, Section 469. 177, Subd. 1, the ori�inal net tax capacity �vill be reduced by no more than the cunent net tas capacity of the parcel(s) eliminated from the Tar Increment Financing District. The HRA must notify the County Auditor of any modification that reduces or enlarges the gzo�raphic area of the Tax Increment Financing District or the Redevelopment Project Area. Modifications to Tax Increment Financin; District in the form of a budget modification or an expansion of the boundaries �vill be recorded in the Tax Increment Financin� Pian. Subsection 19.AdministrativeExoenses. In accordance with Minnesota Statutes, Section 469.174, Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3, administrative expenses means all expenditures of the HRA, other than: amounts paid for the purchase of land or amounts paid to coniractors or others providing materials and services, including archiEectural and engineering services, directly connected with the physical development of the real property in the district; . relocation benefits paid to or services provided for persons residin� 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 Minnesota Statutes, Section 469.178. Administrative expenses also include amounts paid for services proti�ided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any atithorized and documented administrative expenses for the Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total taY increment expenditures, �vhichever is less. �z�szi�,s o�-1q3 Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, tax increments may be used to pay for tlte county's actual administrative expenses incurred in connection with the Tax Increment Financin� District. The county may require payment o£those expenses by February li of the year followin� the year the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the HRA and the county treasurer shall pay the amotmt deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for tlie cost of financial reportin� of tax increinent financin� information and the cost of examinin� and auditing authorities' use of tax increment financing. Subsection 20. Limitation of Increment Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no tax incrzment shall be paid to the HRA for the TaY Increment Financin� District after three (3) years from the date of certification of the Ori�inal Net Tax Capacity value of the taxable property in the Tax Increment Financin� District by the County Auditor unless within the three (3) year period: (a) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 to 469.165, or (b) the HRA has acquired property within the Tax Increment Financing District, or (c) the HRA has constructed or caused to be constructed public improvements w�ithin the Tax Increment Financin� District. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt service fimd or other escrow account held in trust for alt outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to Mianesota Statutes, Section 469.176, Subd. 6: if after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service includin� sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance �vith the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the oi�•ner of [he parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel includin� qualified improvement of a street adjacent to that parcel, in accordance with the tas increment financin� plan, the i?�az i i �-� 10 a �-'�q3 authority shall certi fy to the county auditor that [he activity has commenced and the county auditor shall certify the net tas capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financin� district. The county auditor must enforce the provisions of this subdivision. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or openin� of a new street, (2) re;ocation of a street, and (3) substantial reconstruction or rebuildin� of an existing street. Subsection 21. Use of Tax Increment. The HRA hereby detern�ines that it �vill use 100 percent of the captured net tax capacity of taxable property located in the Tax Increment Financing District for the followin� purposes: to pay the principal of and interest on bonds used [o finance a project; 2. to finance, or othenvise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 4b9.134; 3. to pay for project costs as identified in the bud�et; 4. to finance, or otheRVise pay for other pucposes as provided in Minnesota Statutes, Section 469.1 76, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to the HRA or for the benefit of Redevelopment Project Area by the developer; 6. to finance or othenvise pay premiums and other costs for insurance, credit enhancement, or other security guaranteein� the payment when due of principal and interest on taY increment bonds or bonds issued pursuant to the Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both; and to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicablz to the HRA nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4. Subsection 22.Notification of Prior Planned Lnqrovements. The HRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of the Tax Increment Financing District enlar�ement with a listin� of all properties within the TaY Increment Financing District or area of enlargement for �vhich building permits ha�•e been issued during the eighteen (18) months immediately preceding iz7szii�3 11 4 1—'1�3 approval of the Plan by the municipality pursuant to Minnesota Statutes, Section 4G9.175, Subd. 3. The County Auditor shall increase the original value of the Tax Tncrement Financin� District by the value of improvements for �vhich a buildin� permit was issued. Pursuant to NlinnesoFa Statutes, Section 469.177, Subd. 4, the HRA has reciewed the area to be included in the Tas Increment Financing District and found no parcels for �vhich building permits have been issued during the 18 months immediately� preceding approval of the Plan by the HRA. Subsection 23. Excess Tax Increments. Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in �vhich the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475. 61, Subd. 3, the HRA shall use the excess amount to do any of the following: prepay any outstandin� bonds; 2. discharge the pled�e of tax increment therefor; 3. pay inro an escrow account dedicated to the payment of such bond; or 4. retum the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Tax Increment Financin� District or Redevelopment Project Area. Subsection 24. Requirements for Aareements with the Developer. The HRA �vill review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable mu�icipal ordinances and codes. To facilitate this effoR, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawin�s, landscapin� plan, grading and storm draina�e plan, si�nage system plan, and any other drawin�s or narrative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. The HRA may also use the Agreements to address other issues related to the development. Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no more than 10 percent, by acrea�e, of the property to be acquired in the Tax Increment Financin� District as set forth in the Plan shall at any time be o«•ned by the HRA as a result of acquisition with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469. 178, without the HRA havin„ prior to acquisition in excess of 10 percent of the acrea�e, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA should the development or redevelopment not be completed. I?73? I I v3 1 � o � •'1q3 Subsection 2�. Other Limitations on the Use of Tax Increment General Limitations All revenue derived from tax increment shall be used in accordance with the Plan. The revenues shall be used to finance, or othenvise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.124 to 469.134; These revenues shali not be used to circumvent existing levy limit law. No revenues derived fi tax increment sl�alt be used for the acquisition, construction, renovation, operation or maintenance of a building to be used primarily and re�ularly for conductin� the business of a municipality, county, school district, or any other local unit of govemment or the state or federal govemment, or for a commons area used as a public park, or a facility used for social, recreation or conference purposes. This provision shall not prohibit the use of revenues derived from tax incremznts for the construction or renovation of a parkin� stn�cture. 2. Pooline Limitations. At least 80 percent of tax increments from the Tax Incremznt Financing District must be expended on activities in the Tax Increment Financing District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities �vithin said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or othenvise, on activities outside of the Tax Increment Financing District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applyin� this restriction, all administrative expenses must be treated as if they �vere solely for activities outside of the Tax Increment Financing District. Five Year Limitation on Commitment of Tax Increments Tax increments derived from the Tax Increment Financing District shall be deemed to have satisfied the 80 percent test set forth in para�raph (2) above only if the five year rule set forth in Minnesota Statutes, Section 469. 1763, Subd. 3, has been satisfied; and beginning with the sixth year followin� certification of the Tax Increment Financin� District, 80 percent of said tax increments that remain afrer expenditures permitted under said five year rule must be used only to pay previously commitment expenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section 469.1763, Subd. 5. 4. Expenditures Outside District. The Authority hereby elects to spend an additional ten percent of the tax increments on activities located outside the Tax Increment District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d) provided that the expenditures meet the followin� requirements: (i) they are used exclusively to assist housing that meets the requirements for a qualified low-income buildin� as defined in Section 42 of the Intemal Revenue Code of 1986, as amended (the "Code"); inaai i�a 13 d � -'113 (2) they do not exceed the qualified basis of housin� as defined under Section 42(c) of the Code less the amount of any credit allowed under Section 42 of the Code, and (3) They are used to (i) acquire and prepare the site for housing, (ii) acquire, construct or rehabilitate the housing or (iii) make public improvements directly related to the housin�. Subszction 26. Countv Road Costs Pursuant to Minnesota Statutes, Section 469. 17�, Subd. la, the county board may require the HRA to pay for all or part of the cost of county road improvements if, the proposed development to be assisted by tax increment �vill, in the judgement of the county, substantially increase the use of county roads requirin� constniction of road improvements or other road costs and if thz road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the HRA and consultants, the proposed development outlined in this Plan �vill have little or no impact upon county roads. If Ihe county elects to use inerzments to improve county roads, it must notify the HRA within thirty days of receipt of this Plan. Subsection 27. Assessment Aereements Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an a�reement in recordable form with the developer ofpropercy �vithin the Tax Increment Financin� District which establishes a minimum market value of the land and completed improvements for the duration of the Tax Tncrement Financin� District. The assessment agreement shall be presented to the assessor who shall revie�v the plans and specifications for the improvements constructed, review the market value previously assi�ned to the land upon which the improvements ace to be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certi£y the minimum market value agreement. Subsection 28. Administration of the Tax Increment Financin� District. Administration of the Tas Tncrement Financin� District will be handled by the Executive Director of the HRA. Subsection 29. Financial ReportinQ Requirements. The HRA will comply �vith all reportin� requirements of Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6a. ia7szii�s 14 0�-'1q3 E\Iti13t[ .�-i . .(. '1 .i•J � � L � � � � ._ � � � V ..... L � � .... 0 � � F"` � � \ � � � �, w . , C1TY/Ca1NTY C�£DIT UNION I EMBASSY SUITES F�TEL � � E. � SQUARE "'� � .. •. MINN. JTU.+Z LIfE \CENSER �_ �; t�)': �dC ] � � 1 �� - -•---- � •-- F£PRS PAR1C GALTIER PLAZA BIDG. _ �•�� FIRST o TR'JST c� CEHf ER � EXHIBIT A-2 _.. „ „ „ ' � U ' r �;;��: : �� , FIRST BAPTIST � CFiURCH ' SCr. I I , : �-� . . [T ..� \ ". ;�;��;{ � wacoute� $7, f{ARY'S � Commons Park CAT UC �� :.� . E. 8lh ST. TIF Dlslrid No. 1 (NoRh Quadrant) � �� ' � � ��l Sc'. J o � �:' E.� �e, sr: FfR]TPGE � }4lUSE � PARX �T � LdrFRTOVN � u1[N G SQIY'n'£ EQlSQFS$ BLDG �� S A.DG I I I I �� I -<'� E. 6th : _-rr--rrrz .�.�. . .' �' '.': .'.' '.' �p.... . . 9.p. ...• .�.�. �:�.�.� �'. _.......•.. 1 �� .�`a-.1 �� c o � -1't� � � \ � �`e Q� � J � � � �L�_ � � � — V O y � n ST. �- TF£ P KSIIE � � � � - 4�.� � �� E. tOth 57. EXHIBIT B � � � � �., ��s.":.�� ..�.�.�...�_. . .�ro��t�1 Ql�r�c��a�it �. � � EXHIBIT C-1 �� 1q � Assum tions Re ort City of St. Paui, Hiinnesota Proposed Tax Increment (Redevelopment) Financing Distric[ North Quadrant (Sibley Park) Housing Development Scenario A- Phase One Totai Project (26 years, 8% note) Type of Tax Increment Financing District Maximum Duration of TIF District Certification Request Date Decertification Date Base Estimated Market Value Times: First SO Excess Original Net Tax Capacity (1) Rzdavelopment 25 years from tst increment 09/07/00 72/O7/27 (26 Years of Increment) 2000/2001 $683,500 0 0 y 7 0,577 AssessmenVCollection Year Base Estimated Market Value Increase in Estimated Market Value (1) Total Estimated Market Vaiue Times: First SO Excess Total Net Tax Capacity (t) Base Inflation Factor Locai Tax Capacity Rate F�scai Disparilies Coniribution From TlF DisSrict Administrativ= Retainage Percent (maximum = 70°�6) Poohng Percent City Tax Rate (Oniy if Local-Effort TIF) 6onds 8onds Dat°d Fust interest Date Underoiriters Discaunt 0.0090 0.00°0 2001/2002 200212003 2003/2004 200A/2005 5683,500 5683,500 5683,500 5683,500 2,000,000 15,065,744 15,065,744 15,065,744 $2,683,500 515,7A9,244 515,749,244 515,749,244 0.00% 0 0 0 0 0.00% 0 0 0 0 NA NA NA LGA/HACA Loss: Will Annual Local Contribution Be Made (Yes or No)? (2) I.S.D �525 Equalized Tax Capacity Rate I.S.D k625 Sa!es Ratio City Szl=s Rztio & Taxable Net Tax Capacity Preseni Valu? Date & Rate NA 748.553% (Payablz 2000) 0.0000 f {NA for Housing) 10.00% 0.00% NA Note (Pav-As-You-Go) Note Dated 09.'Ot/00 Note Rate 8.00% Yes NA NA NA NA 09/Q7l00 5.00% (i) See `Schedule of Project Values' tor caicutation of Market Values and Net Tax Capaci6es. (2) Assumes annual contribution will be madz upfront and will not be available (or debt service. S4t,527 5265,389 5265,389 5265,389 Preoa2d bv: S�rirgsted Incorporated (printed on 06/28/2000 at 321 PM) Tif062c=_.xls d�-193 Market Value Anaiysis Report City ot St. Paul, h7innesota Proposed Tax Increment (Redevelopment) Financing District North Quadrant (Sibiey Park) Housing Development Scenario A- Phase One Total Project (26 years, B% note) Assumotions Present Vai�a Date P.V. Rate - Gross T.1. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotai Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 22 23 24 25 26 09l0 7 /00 8.00%, 5 7 5,065,744 3,481,295 511,584,449 0 $11,584,449 Annual Present GrossTax Value � Year l�creme�t SA�%, 2002 45,977 39,766 2003 378,531 298,569 2004 378,531 276,453 2005 378.53? 255,975 2006 378,531 237,014 2007 378,531 279,457 2008 378.531 203,207 2009 378,531 188,149 2010 378,531 174,212 2011 378,531 161,308 2012 378,531 749,359 2073 378,531 138,295 2014 378,531 128,051 2015 378,531 178,566 2016 378,531 109,783 2077 378,531 701,657 2018 378.531 93.727 2019 378,531 87,149 2020 378,531 80,694 2021 378,537 74,717 2022 378,531 69,182 2023 378,531 64,057 2024 378,531 59.312 2025 378,531 54,919 2026 378,531 50,857 2027 378,531 47,084 59,509,252 53,481,295 Prepared by: Springsted Incorporated (06/28/2000) c 0 c i� �� , t N� ti N N N N N N C' �� t� t�.� 4[�.� Cl. c3 �7 � 4� P N �' N N N� c, c.� �3c3e=c3e7cl cl � F�.. � p u c3��;ot��,��N=o�°°��a�aa� N N N y'+ N f� I�: N N N I� � c N N N N C C� N G'. 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C_: _3:: ,=5.1.3 .. ::t:7."'c_ i�=.�a� c �; 7 G: C.Ca O' �� `V hcaioa oY Sca�,:,ica irA.o'ttn: Y or.OS*,"-„7.D: >, �:GS PYj Tfi'lt: ra a t •' �x Hi�3t � c--Z Assum tions Re ort City of St. Paul, Minnesota Proposed Tax Increment (Housing) Financing District North Quadrant Phase Two Scenario A- Phase Two Total Project (25 years, 8% note) Type of Tax Increment Financing District Ma�imum Duration of TIF District Certifiqtion Request Date Decertification Date Base Estimated Market Value Times: First $0 Excess Onginat Net Tax Capacity (1) Base Estimated Market Value Increase in Estimated Market Value (1) Total Estimated Market Value Times: First $0 Excess Total Net Tax Capacity (1) Base Inflation Factor Local Tax Capacity Rate Fiscal Disparities Contribution From TIF District Adminishative Retainage Percent (maximum = 10%) Pooling Percent City Tax Rate (Only if Local-Effort TIF) Bonds Bonds Dated First Interest Date Underwriters Discount 0.00% 0.00% Redevelopment 25 years from 'ISt increment 08/01/01 12/01/27 (25 Years of Increment) 2001/2002 $806,000 0 0 $9,334 AssessmenUCollection Year 2002/2003 2003/2004 2004/2005 2005/2006 $806,000 $806,000 $806,000 $806,000 2,000,000 16,738,522 16,738,822 16,738, 822 $2,806,000 $17,544,822 $17,544,822 $17,544,822 0.00% 0 0 0 0 0.00% 0 0 0 0 NA 123.330% (Est Pay 2002) 0.0000% (NA for Housing) 10.00% 0.00% NA Note (PaV-As-YOU-Gol NA Note Dated 08/0'IlO� NA Note Rate 8.00% NA LGPJHACA Loss: Will Annual Local Contribution Be Made (Yes or No)? NA I.S.D #625 Equalized Tax Capacity Rate NA I.S.D #625 Sales Ratio NA City Sales Ratio & Taxable Net Tax Capacity NA NA Present Value Date & Rate 08/01/01 5.00% (1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities. $32,495 $197,076 $197,076 $197,076 Prepared by: Springsted Incorporated (printed on 07/18/2001 at 323 PM) Phase 2 071801a.xls o � -' Market Value Analysis Report City of St. Paul, Minnesota Proposed Tau Increment (Housing) Financing District North Quadrant Phase Two Scenario A- Phase Two Total Project (25 years, 8°/, noYe) Assumotions Present Value Date P.V. Rate - Gross T.I. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 22 23 24 25 26 08/01/01 8.00% $16,738.822 2,087,603 $14,651,219 0 $14,651,219 Annual Present Gross Tax Value @ Year Increment 8.00% 2003 28,564 24,177 2004 231,542 181,463 2005 231,542 168,021 2006 231,542 155,575 2007 231,542 144,051 2008 231,542 133,381 2009 231,542 123,501 2010 231,542 114,352 2011 231,542 105,882 2012 231,542 98,039 2013 231,542 90,777 2014 231,542 84,052 2015 231,542 77,826 2016 231,542 72,061 2017 231,542 66,724 2018 231,542 61.781 2019 231,542 57,205 2020 231,542 52,967 2021 231,542 49,044 2022 231,542 45,411 2023 231,542 42,047 2024 231,542 38,933 2025 231,542 36,049 2026 231,542 33,378 2027 231,542 30,906 2028 0 0 $5,585,572 $2,087,603 Prepared by: Springsted Incorporated (7/19/01) dl�� d : O C N a � m � i C � U y N t�p O � O � ; N, f N LL d C m �n V C C �6 d rC y 1 r � a ^o R S q R 0 C R I � w � Q 3 O � .0 �- T V Y 4� " G O '! U q Z t F a �° a O � a O � S V y W @ m � m 3 C C � Z m ¢ m � c 0 5 0 � � a o a � o a � � o 0 U C @ N m � r � 9 < Z � m y � @ O d E R o J Q m � � c C 3 � e N Q V 1A N N y J � m � N � X C m F � = N d Q O U i� s � m K U N F F 6 � U a o x D � � � U C � F � A a N N � � �' U Z U s �� y N d O J LL N O � p x � N C � � m m � n � � Z U x � W F N ~ Z � U � a m J 0 C ` a a w ` a O O� N N N N N N N N N N N N N N N N N N N N N N N N O � b�� H N h� H N N N h N h h� N h H�� h�� n n n n n � r� � r r r r r r n r � n r r r� N o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O� N N N N N N N N N N N N N N N N N N N N N N N N O � t� N N h N h 1� �� 1� t� h Y�l N h h� h� h 4[l h N N �ri � r n n n r n r r n � r r � r n r r r � r n r ti N O O O O O O O O O O O O O O O O O O O O O O O O N N N(V N N N N N N N N N N N N N N N N N N N N 0 o v <o <o �o �o <o m �o �o <o co �o <o m <o �o �o �o co co �o <o �o m �o 0 m o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N [h (7 M t") (7 f7 t7 C) C� M C1 t7 (7 [+J (7 t") C) (� (7 (") CJ M M C� N N N N N N N N N N N N N N N N N N N N N N N N O O V V d' V V V V V V V V V Q V C Q V V d"Q V d"V V O � rn rn m rn rn rn m rn m m rn m� m rn rn rn rn m rn rn rn rn m O O O N N N N N N N N N N N N N N N N N N N N N N N N O (O V V C< V O V V V V V C V V C V V O 4 V V C V V �O N tn ln � tA ttl H h U5 H N� N N N tn � h tn In tn ln N tn � N N N N N N N N N N N N N N N N N N N N N N N N O O N N N N N N N N N N N N N N N N N N N(V N N N N O O co v v v v v v v v v v v v a a v v a v v v v v v v n r r r n � r n n r` n n � n n � n n r r n r r n C) h 1� 1� t� 1� 1� I� t� r 1� A 1� 1� h h I� r 5� f� n 1� t� 1� 1� N 0 N oJ W m N OJ m OJ oJ m N a> m W 4� m W oJ Ql 6� oJ oJ W 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c o v v a c v a v e v v e v v a v v v v v v a v v v v�o co co M M m m � M m m n M m e o'� m M o'� m m M c`�'� m m`�i m m r o 0 m oi ai oi m oi oi oi ai oi ai m oi ai oi ai oi ai ai oi oi oi ai ai ai m m � r rn m 0 0� m m m^ � m m c m m m m m m m� m c m c m c m m m m v o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M�� m� W� 01 � W 0I m Of m m � W�� 6� m� 6] O� � W � � ��- e � �- � � ��- << v � � ��- � � v �- � � � � c� ca v�n co r m rn o � N m v�n �o � m rn o c� m v�n m r m rn O O O O O O O O O� � N N N N N N N N N N (n t") CJ (h M CJ C') (� t7 [") (h C] CJ t") CJ M M C) th (7 t"J M fh Cl t"J (7 (h M t") ??«<<?�?«<«��«aaaaa?a�� M X N O � A O 0 m a °� V O � m � Vd M r N ff3 ,..�. EXHIBIT D-1 .p (.� G] (7 � c� � a. c°'. n N - C N N ' � t ° c 10 � U c a C7 6 � F' >. x �. U Z = m � F- e e o ° O ✓� ('� °� U C � O O �" • � � O t f�i U ti � � O 'u O Q 6 � 'J X 2 Q F 3 N U 9 � N U L � O d D J T a S m x T m F N Z A a� r- z 0 o e m p� 0 O N r � � �O O [7 t� (� V � � N a � � (��J V O ' N � c� o r � � N II N N N N p m 61 G> U N N A Q Q N N U� 7 F �U N N N N d Pj d � @ � ¢ U Z m a ei o m x N q F' � % N N � � Z O N � � rn O y L� J � � 7 LL � F 3 0 V O m X d �O N A F x d a � � Z C F (7 O N m m � �(f K � � M p�i N , r o � ai � N � e N M Q e e e e � � N n n i� � N <o o ni t� m c� ,r � a N r N C � N t'J �0 • N n 0 ^ � � N � 'J a a d O N U N � m � O u+ ae � T � � t O U ¢ �? O t- N � � O � R m U d O � X L N N R �y - t � ¢ U � � X 0 q C � � � �it N � � y o �' v A N a d � � ] t O O � ¢ N T � d >` @ L � � U u f0 L� N . — y t F 3 '� y L U . p N � L 0. T � � H C r=�gN '? 'n ry C ro m U 7 "" � @ y N d V a' d U � N x �^.� � N R V U' � = .� ~ d f LL � V � � N p a J j O a o L dt � 3 2��; T O d tC U 4 h � � d y � x U � .� � � � Q n a �n p � x U� A A r F�- � X O V d G O F�i Q d t Z � S o a � Z y p T>' j' o E x R a m �� L m u�i m U x a m E`. U a A � � � N \ K C @ N m F- �t0 O � y L N N d U C m p Z � CJ y ° > >. o ° m E 6 V 'o 'o d � �O N � N � d C fJ T�' 16 a O y V � 9 m � d � c> > � V m ° � 3 a d = d s d� U j� V C t m L O d C � = � 3 3 ¢ N N C � y u E E U v � � N y d A A N O C m p L � `o � o O r V U j T T '� c d O N 9 N W d � d LL y F t d m C _ �N 6 � V ,p T '� U � a ° �p N U y A o V C y R '_ O ^ tl C � A �� - 0 SS y U � �' O C V c n E 1� f � � O 0 N t�. 0 V O O _ N � N a a m m a N A A c m o r � `o a e C N U n T � � T � C C � N b m V � L d LL � H � a a � U j C 6 H U � � T � U � F d Z c ,q N J y K C L o U = N 0 L > � I � i !� o y i y 3 d L C > � � U � n i E ic F .� Q � .1� O N N N � � N � a U a � t N t d n a ot-1 N U p . 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T Q 2 f � N t N N F ' ( Z H Z i ( d a�i m m i s r � N '� � a�c�z,` L 0 � � L � 3 ° m 'o a` o m x ` o a m : � � � 'i O X � � o H Z j N � O : N @ � � ox; N f O N X ` N � h � d � O H Z N j ��i N • I f ', o e o 0 �O N t� � m v st m N 6J I` 1� (7 M tn V N N � � � N ul � r N � N m OJ r �+i co � � � n N N N N n n � � r n r � co w m m e N m M � � N v �n m � n N � o n �o r oi �o � c�i � a a o o I e m e u�i m n [V tA 1� h t0 e� e� �n m h � N < YJ (O A N � � o r � 1� t'J (p a � � � T a a o �A N � N O N � N � L N U ¢ N O F y > ^' o d � d V o � x � v � d N � N N CL N . ; m x p x rn s � � F (p X � O O U ^@' N � V � y Y L L : 0 �, Q m >°. o m N V V N {�p � U - lp L C � N O ? ~ ?� N � o 6 T N � N O � c L - � y N N � C � {p V 3 y- ° m `-' _ � U � p� N O � � F � H F' U � O � � N � r � � O � N L C �i .`T. !/j O�+ N N U V� T 9 m m � � � 'V N � i� N N a a v� d� U •� - f0 N � LL K V 9 K m F 1� u X O V d � O F 3`o m 5 Z o L � N J � � N N Z ` ° '' 2 ' m = n � ?= m a�i m U m m > m " U ° :c U o m o m c G a a s�� m o N � C � � C N O Z � N � U�O d N N E d � O N J ^ O d N d A 4 C V ^'O ry N n U1 m m o o V ` o c � � � °� n x 3 a � �! V� U� N U C d L O N C d - � 3 3� m � N G C E E m N m Y h � N @ x .� 2 O C � � O a e C � U ^ � T t 0 H 'o ` N U � � d LL y H � N � V j C N U � L T � V � N C ( N U r C O � V L � � " o � II C a X �U � a °' � y L X ^ � C O L U m m a. H E L- F- ... .�. O � N m 0 d U a v�i C . � a � `m N a