02-287S �.bSt - ,-��.,� � -
ORIGI�VA�
�pr,� 3 �oo�.
OF SAII,� PAUL, MINNESOTA
Presented By
Referred To
RESOLUTION NO.
Council File # a a- o�g �
Resolution #
Green Sheet # �u3a�
Committee: Ddte
RESOLUTION APPROVING
AMENDMENT OF TAX INCREMENT FINANCING PLAN FOR
TFIE SAINT PAUL NEIGHBORHOOD REDEVELOPMENT
8 TAX INCREMENT FINANCING DISTRICT NO. lA
9 (SCATTERED SITE) AND THE ESTABLISHMENT
l0 OF THE UNIVERSITY AND DALE TAX INCREMENT
11
12
FINANCING DISTRICT AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN THEREFOR
�
13 WHEREAS, the City Council of the City of Saint Paul (the "City") has heretofore, at the request of the
14 Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authority"), pursuant to a
15 resolution adopted on March 17, 1987 (the "Redevelopment Plan Resolution"), approved a Redevelopment
16 Plan ("Neighborhood Redevelopment Plan") for the Saint Paul Neighborhood Redevelopment Project (the
i7 "Redevelopment Project Area"); and
18 WHEREAS, in order to finance public redevelopment activities in the Redevelopment Project Area, the
19 Authority, with the approval of the City established within the Redevelopment Project Area, Taat Increment
20 Financing District No. lA (Scattered Site), (the "Scattered Site TIF DistricY'), and adopted a Tax Increment
21 Financing Plan therefore (the "Scattered Site TIF Plan"); and
22 WIIEREAS, the Authority desires to amend the Scattered Site TIF Plan to delete certain pazcels from
23 the Scattered Site TIF District as set forth in a document presented to the City Council on this date enritled
24 "Amendment of Tas Increment Financing Plan for the Saint Paul Neighborhood Redevelopment Taac
25 Increment Financing District No. lA (Scattered Site)" (the "Scattered Site Amendment"); and
26 WHEREAS, new private investment that fully realizes the potential of the Redevelopment Project
27 Area, and meets the City's goals and objectives is unlikely to occur unless fiuther public action is undertaken
28 to continue preparing the Redevelopment Project Area for redevelopment and to continue guiding its
29 transformation; and
3o WHEREAS, the Authority has provided an opporhmity to the Ramsey County Board of
31 Commissioners and the School Board of Independent School District Number 625 to meet with the Authority
32 and has presented them with copies of the Scattered Site Amendment; and
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33 t relevant provisions of state law require that the goveming body of the City approve
34 any modificafion or amendment to the Scattered Site TIF Plan following a public hearing thereon.
35 WHEREAS, the Authority has also asked the City Council to approve the creation, within the
36 Redevelopment Project Area, of a ta7c increment financing district as a redevelopment taY increment financing
37 dishict under Minuesota Statutes, Section 469.174, Subdivision 10 (the "University and Dale Ta�c Increment
38 Dishict"), and the adoption of a Tax Increment Financing Plan therefor, all pursuant to and in accordance
39 with Minnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act").
40 WHEREAS, the Authority has performed all actions required by law to be performed prior to the
41 crearion of the University and Da1e Tax Increment District and adoption of a Tas Increment Plan therefor,
a2 including, but not limited to, notification of the Ramsey County Commissioner representing the area of the
43 County in wluch the UniversiTy and Dale Ta�c Increment Financing District is located, and delivering a copy
44 of the Taac Increment Financing Plan to Ramsey County and Independent School District Number 625, which
45 have t�ing jurisdicrion over the properry to be included in the University and Dale Taac Increment District.
46 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saint Paul, Minnesota, as
a7 follows:
48 Section 1. Approval of Amendment to the Scattered Site Tax Increment District.
49 1.01 The City Council hereby ratifies and confums the finding set forth in the prior resolutions of
5o the City Council approving the establishment of the Scattered Site TIF District, that the Scattered Site TTF
51 District is a"redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, subdivision
52 10.
53 1.02 The City Council hereby reaffirms its findings in the Redevelopment Plan Resolution and
54 hereby finds that the land within the Redevelopment Froject Area and the Scattered Site TIF District would
55 not be made auailable for redevelopment or development, nor would the provision of new development
56 reasonably be expected to occur solely through private investment within the reasonably foreseeable future
57 without the use of taac increment and the other public assistance sought and to be provided.
58 1.03 The City Council hereby reaffums its findings in the Redevelopment Plan Resolution and
59 hereby finds that the proposed development and redevelopment within the Redevelopment Project Area has
6o not occurred nor would occur solely through private investment within the reasonably foreseeable future
61 without significant public financial assistance, that usual sources of public revenue are not adequate or
62 available to provide the required level of such public assistance and that, therefore, the use of ta�c increment
63 financing is necessary to the accomplishment of the development and redevelopment of the Redevelopment
64 Project Area, in accordance with the Redevelopment Plan.
65 1.04 The City Council hereby finds that the Scattered Site Amendment, will afford masimum
66 opporhxnity, consistent with the sound needs of the community as a whole for the provision of new mixed use
67 development and other development or redevelopment of the Redevelopment Proj ect Area by private
68 enterprise.
69 1.05 The City Council hereby finds that the Scattered Site Amendment conforms to the Saint Paul
70 Comprehensive Plan and the general plan for the development of the community as a whole.
71 1.06 The City Council approves the Scattered Site Amendment as submitted and the Authority is
72 directed to file copies of the Scattered Site Amendment with the Minnesota Department of Revenue and the
73 Ramsey County Department of Tu�ation and Records Management.
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7a ection 2. i�gs for the Creation of the University and Dale Tax Increment Financing District and
75 Adoption of a TaY Increment Financing Plan therefor.
76 2.01 The City Council hereby finds that the creation of the University and Dale Taar Increment
�7 Financing District aud adoption of the T� Increment Plan therefor, aze intended and, in the judgment of the
78 City Council, its effect will be, to carry out the objecrives of the Redevelopment Plan and to create an impetus
79 for the redevelopment of blighted shuctures and the conshuction of mixed use commercial, cultural and
80 housing development, and will otherwise promote certain public purposes and accomplish certaiu objecrives
81 as specified in the Redevelopment Plan and University and Dale Tax Increment Financing Plan.
82 2.02 The City Council hereby finds that the University and Dale Tas Increment Financing District
83 qualifies as a"redevelopment district" within the meaning of the Tas Increment Act for the following
84 reasons:
ss The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(a)(1),
86 a"redevelopment district" because it consists of a project or portions of a project within which
s7 the following conditions, reasonably distributed throughout the District, exist: (1) pazcels
88 consisting of at least 70% of the area of the District are occupied by buildings, streets, utilities,
89 paved ar grauel parking lots, or similaz structures; and (2) more than 50% of the buildings are
90 "structurally substandard" (within the meaning of Minnesota Statutes, Section 469.174,
91 Subdivision 10(b)) to a degree requiring substantial renovation or clearance. The District
92 consists of 4 parcels, and a114 aze "occupied" within the meaning of the Ta:c Increment Act.
93 There are 3 buildings in the district, 2 of which (constituting 66.66%) are structurally
94 substandazd to a degree requiring substantial renovation or clearance. The buildings aze
95 structurally substandazd because they contain defects in structural elements or a combination
96 of deficiencies in essential utilities and facilities, light and ventilation, fire protection including
97 adequate egress, layout and condition of interior partitions, or similar factors, which defects or
98 deficiencies are of sufficient total significance to justify substantial renovation or clearance,
99 specifically defects in structural elements. More Yhan 50% of the buildings within the District
loo have been found to be structuraliy substandazd and not in compliance with applicable building
lol codes, and could not be brought into such compliance at a cost of less than 15% of the cost of
102 constructing new structures of the same size and type on the subject sites, respecrively.
103 The supporting facts for these detenninations are on file with the staff of the Authority and include but
104 are not limited to the (a) report dated December 4, 2001 prepared by The Leonazd Parker Architects, and
105 supplementary information related thereto, and (b) a Memorandum dated January 24, 2002 by the
106 Construction Administrator of the Depardnent of Plazuung and Economic Development.
107 2.03 The City Council hereby makes the following findings:
108 (a) The City Council further finds that the proposed development, in the opuuon of the
109 City Council, would not occur solely through private investment within the reasonably foreseeable
l lo future and, therefore, the use of taz increment financing is deemed necessary. The specific basis for
111 such finding being:
112 The costs of the development, including the costs of acquisition and clearance of the
113 development site, exceed the amounts that a private developer could obtain through
114 private financing.
115 (b) The City Council further finds that the University and Dale Tas Increment Financing
ll 6 Plan conforms to the general plan for the development or redevelopment of the City as a whole. The
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117 specific asi's r such finding being. O�-��
118 The University and Dale TaY Increment Financing Plan will generally compliment and
i 19 serve to implement policies adopted in the City's comprehensive plan. The
120 development will result in a higher intensiry, miYed use development in an azea that
121 has been identified as a central transit corridor.
122 (c) The City Council further finds that the University and Dale Tas Increment Financing
1z3 Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the
124 development of the University and Dale Tas Increment District by private entetprise. The specific
125 basis for such finding being:
126 The proposed development to occur within the University and Dale T� Increment
127 District is mixed use commercial, cultural and housing. The development will result in
128 a higher intensity mixed use development and wili increase the taacable market
129 valuation of the City and provide needed commercial, culturai and housing facilities in
130 a central transit azea.
131 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
132 3(2), the City Council hereby finds that the increased market value of the property to be developed
133 within the University and Dale Taa� Increment District that could reasonably be expected to occur
13a without the use of tas increment financing is $0, which is less than the market value estimated to
135 resuit from the proposed development (i.e., $25,000,000) after subtracting the present value of the
136 projected taac increments for the maximum duration of the University and Dale Taac Increment District
137 (i.e., $6,209,459). In making these findings, the City Council has noted that the property has been
138 underdeveloped for many years and would likely remain so if taac increment financing is not auailable.
139 Thus, the use of tas increment financing will be a positive net gain to the City, the School District,
140 and the County, and the tax increment assistance does not exceed the benefit which will be derived
141 therefrom.
142 2.04 The provisions of this Section 2 are hereby incorporated by reference into and made a part of
143 the University and Dale Tax Increment Financing Plan.
144 Section 3
145 therefor.
146
147
3.01
Creation of University and Dale Tax Increment District and the Ta1c Increment Financing Plan
The creation of University and Dale Tas Increment District is hereby approved and the Ta�c
Increment Financing Plan therefor is hereby adopted.
ias 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and
149 legal counsel aze authorized and directed to proceed with the implementation of the University and Dale Taac
15o Increment District and the Ta�c Increment Financing Plan therefore and for this purpose to negotiate, draft,
151 prepare and present to the Boazd of Commissioners of the Authority for its consideration all fixrther plans,
resolutions, documents and contracts necessary for this purpose.
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Requested by Department of:
Plannin4 & Economic DeveloDment
Adopted by Council: Date c"�O �.
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Adoption Certified by Council Secretary
Approved by Financial Services
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Approved by M
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Approved by City Attorney
Approved by Mayor for Submission to Council
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DEPARTMENT/OFF7CE/COUNCIL: DATE INITIATED GREEN SHEET No.:111324 ��Y
PED March 18, 2002 �
CONTACI' PERSON & PHONE: INmAi.mA'Ce nviT7nuuA1'E
Marie Franchett 266-6702 � I DEPAR s c�Ty co����
M[JST BE ON COUNCII. AGENDA BY (DATE) �I�` ? CI'fY ATTORNEY� _ CITY CLERK
3 FINANCIAL SERV DIR. FINANCIAI, SERV/ACCTG
April 3 � 2,0�2 gQ� 4 MAYOR (OR ASST.) _ CIVIL SERVICE COMIvIISSION
ROUTING
ORDER Mazie Franchett
TOTAL # OF SIGNATURE PAGES I_(CLIP ALL LOCATTONS FOR SIGNATURE)
acrioN �Q�s�n: Execution of signatures for submission of resolution to City Council regarding the
establishment of the University and Dale TIF District
RECOMMENDAI'[ONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRACLS MUST ANSWER THE FOLLOWING
QUESTIONS:
PLANNING COMIvIISSION 1. Has this person/fum ever worked under a contract for ihis depaztment?
CIB COMIvIITTEE Yes No
CIVIL SERVICE COhfMISSION 2. Has this person/fum ever been a ciTy employee?
Yes No
3. Does this person/fum possess a skill not norsnally possessed by any ciurent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTiJN11'Y (Who, Whay When, Where, W6y):
At the HRA meeting of February 27, 2002, the HRA directed staff to schedule a public hearing for Apri13, 2002
regazding the establishment of the University and Dale TIF District. The new TIF District needs to be established
prior to the execution of a Development Agreement for the Pan Asian Urban Village project.
ADVANI'AGES IF APPROVED:
Project will move forward.
DISADVANTAGES IF APPROVED:
NA
DISADVANI'AGES IF NOT APPROVED: �
Project will not move forwazd
TOTAL AMO�JN1' OF TRANSACTION: The proposed TIF plau does not commit any fiRA or CiTy funding however it does provide a budget for future funding
of the Pan Asian Urbap Pllage redevelopment project When [he TIF plan is fornarded to the [IRA for approval, any required budget amendmenGS will be
made at that time. Funding coromitmenfs for the project will not be made unfil the Developmeut Agreemeut is approved, which will most likely be on
April2�b, 2002.
COST/REVF.NUE BUDGETED:NA
FONDINGSOURCE: NA ACTIVITYNUMBER: NA
FdNANCIAL INFORNIATiON: (EXPLAl1V)
o �- �8'1
TAX INCREMENT FINANCING PLAN
for the establishxnent of
UNIVERSI'I'Y AND DALE TAX INCREMENT FINANCING DISTRICT
(a redevelopment district)
HOUSING AND REDEVELOPMENT AUTHORTTY OF 'I`HE
CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: , 2002
This document was drafted by:
BRIGGS AND MORGAN (NIMD)
Professional Association
2200 First National Bank Bldg.
St. Paul, MN 55101
(651) 223-6625
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR THE UNIVERSITY AND DALE TAX INCREMENT FINANCING DLSTRICT
Pa2e
Section Forwazd ..................................................................................................................1
Section Statutory Authority ................................................................................................ 1
Section 3. Statement of Objectives ......................................................................................... 1
Section 4. Redevelopment Plan Overview .............................................................................. 2
Section 5.
Section 6.
Secrion 7.
Section 8.
Section 9.
Section 10.
Section 11.
Parcels to be Included in Tax Increment Financing District .................................. 2
Parcels be Acquired ........................................................................................... 2
Development Activity in Taac Increment Financing District far which
Contracts have been Signed ................................................................................... 3
Other Specific Development Expected to Occur within Redevelopment
Area........................................................................................................................ 3
Estimated Cost of Proj ect; Talc Increment Financing Plan Budget ....................... 3
Estimated Amount of Bonded Indebtedness ......................................................__. 3
Sources ofRevenue ................................................................................................3
Secrion 12. Estimated Captured Tas Capacity and Esrimate of Ta�c Increment ....................... 4
Section 13. Type of Taac Increment Financing District ............................................................. 4
Section 14. Duration of Taz� Increment Financing District ....................................................... 4
Secrion 15. Estunated Ixnpact on Other Taxing Jurisdictions ................................................... 5
Section 16. Modification of Ta�c Increment Financing District and/or Tas Increment
Financing ....................................................................................................... 5
Section 17. Modificarions to Tax Increment Financing District ............................................... 5
Section 18.
Section 19.
Secrion 20.
Section 21.
Section 22.
Section 23.
Section 24.
Section 25.
Admnustrative Expenses ....................................................................................... 6
Limitation Increment ......................................................................................... 6
Use of Tax Increment ............................................................................................. 7
Notification of Prior Planned Improvements ......................................................... 8
Excess Increments .......................................................................................... 8
Requirements for Agreements with Developers .................................................... 9
Other Limitations on the Use of Tax Increment .................................................... 9
County Costs ..............................................................................................10
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Section 26. Assessment Agreements ...................................................................................... 10
Section 27. Admiuistrarion of the Taac Increment Financing District ..................................... 11
Section 28. Financial Reporting Requirements ...................................................................... 11
EXEIIBIT A— Tas Increment Financing Plan Budget
EXfIIBTT B- Projected Tas Increments
EXffiBTT C- Estimated Impact on Other Taxing Jurisdicrions
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TAX INCREMENT FINANCING PLAN FOR
'I� UNIVERSITY AND DALE TAX INCREMENT FINANCING DISTRICT
Section 1. Forward. The Housing and Redevelopment Authority of the City of Saint
Pau1, Minnesota (the "HRA"), and its staff and consultants have prepazed the following
information for the establishment of a redevelopment tas increment financing district (the "Tas
Increment Financing District"). The Tas Increment Financing District is located within the Saint
Paul Neighbarhood Redevelopment Project Area heretofore established by the HI2A (the
"Redevelopment Project Area").
Section 2. Statutorv Authoritv. There exist areas within the City of Saint Paul (the
"City") where public involvement is necessary to cause development to occur. To tlus end, the
HRA has certain statutory powers pursuant to Miuuesota Statutes, Secfion 469.001 to 469.047
(the "HRA Law") and Minnesota Statutes, Section 469.174 tUrough 469.179 (the "Ta�c Increment
Financing AcY' or "TIF AcY'), to assist in financing public costs related to a redevelopment
project.
Section 3. Statement of Objecrives. The Tax Increment Financing District consasts of 4
pazcels of land and adj acent and intemal rights-of-way. The Tas Increment Financing Dish is
being created to facilitate the redevelopment of an existing commercial development by the
construction of new facilities for commercial, housing and cultural arts uses. The tas increment
financing plan is expected to achieve the obj ectives outlined in the Redevelopment Plan for the
Saint Paul Neighborhood Scattered Site Project Area. The following are some of the objectives
being facilitated by the Taac Increment Financing Plan.
A. Provide Affordable Housing for Saint Paul Residents.
The available housing for residents in the Project Area will be expanded when the 50 unit
seniar housing facility is constructed.
B. To Redevelon Underused Pronertv.
The Tas Increment Financing District currently contains property that has been
underutilized for many years. In order to protect existing investment and encourage new
development in the area, remove and prevent the emergence of blight and blighting influences,
substandard buildings need to be demolished and new facilifies need to be constructed.
C. Transit
The property is located at a key transit node for University Avenue which has been
identified as a central transit corridor. The project will result in a higher intensity, xnixed use
development that interrelates development with multi-model transportation options.
D. Exnand the Tax Base of the Citv of Saint Paul.
It is expected that the taYable market value of parcels in the Tas Increment Financing
District will increase by approxunately $25,000,000 as a result of the new development.
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The activifies contemplated in the Redevelopment Plan and this Tas Increment Financing
Plan do not preclude the undertakiug of other qualified development or redevelopment activities.
These activities are anricipated to occur over the life of the Tax Increment District and the
Redevelopment Project.
E. Emplovment.
The project will result in job creation of 300 jobs with 187 of net new jobs.
F. New Investment.
The project will leverage $30,000,000 in new investment for the Frogtown/Summit
University Avenue comxnunities.
Section 4. Redeveloroment Plan Overview.
Property to be Acquired — Any of or all of the property located within Tas
Increment Financing District or Redevelopment Project Area may be acquired by
the HRA.
2. Relocation - if necessary, complete relocafion services are available pursuant to
Minnesota Statutes, Chapter 117 and other relevant state and federal laws.
Upon approval of a developer's plan relating to a development and completion of
the necessary legal requirements, the HRA may sell or assist a developer with the
cost of acquisition of selected properties within TaY Increment Financing District
or Redevelopment Project Area, or may lease land or facilities to a developer.
Section 5. Parcels to be Included in Tax Increment Financing District . The following
parcels located in the City of Saint Paul, Ramsey County, Minnesota are to be included in the
Tax Increment Financing District:
PIN NO.
36-29-23-32-0005
36-29-2332-0006
36-29-23-23-0249
46-20-23-23-0114
FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO
BE INCLUDED IN THE TAX INCREMENT FINANCING DISTRICT CAN BE OBTAINED
FROM THE EXECUTIVE DIl2ECTOR OF THE HRA.
Section 6. Parcels to be Acquired. The F3RA may finance all or a part of the costs of
acquisition of all or a portion of the parcels identified in Section 5 of this Tax Increment
Financing Plan. The HRA may use its powers of eininent domain to acquire parcels which it
cannot obtain through private negotiarion.
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The HRA may acquire property by gift, dedication or direct purchase from willing sellers
in order to achiteve the obj ectives of the tas increment financing plan; and
Such acquisitions will be undertaken only when there is assurance of funding to finance
the acquisition and related costs.
Section 7. Development Activitv in TaY Increment Financine District for which
Contracts haue been Si¢ued. The following contracts have been or will be entered into by the
HRA and the persons named below:
No development agreements have been entered into at this time. However, the
HRA has entered into a Memorandum of Understanding with Pan Asian
Development Group, a Minnesota limited liability company (the "Developer")
with respect to the development of approximately Z00,000 gross square feet of
office and retail space (the "DevelopmenY') and the development of 49 units of
affordable senior housing (the "Housing Development"). The HRA intends to
enter into a Development Agreement with the Developer with respect to the
Development prior to the acquisition of any property in the Ta�c Increment District
by the HRA.
Section 8. Other Sroecific Develonment Exnected to Occur within Redevelopment Area.
The HRA anticipates that future development in the Ta�c Increment Financing District will
include the construction of the Asian Pacific Community Center (the "Cultural Center"). The
fIRA anticipates that the Aousing Development will be completed by December 31, 2004, and
that the Cultural Center will be completed by December 31, 2004, or as late as December 31,
2006. With the compietion of the development of the southeast corner, it is anticipated that there
will be enhanced market support to stimulate the redevelopment of the building located at 545-
555 University Avenue.
Section 9. Estimated Cost of Project: Ta�c Increment Financin� Plan BudQet. The HRA
has determined that it will be necessary to provide assistance far certain public costs of the
Development. To facilitate the Development within the Tas Increment Financing District, this
TaY Increment Financing Plan authorizes the use of taac increment fmancing to pay for a portion
of the cost of certain eligible expenses. The estimate of public costs and uses of funds associated
with Ta�c Increment Financing District is outlined on Eachibit A.
Estunated costs associated with Tax Increment Financing District are subj ect to change and may
be reallocated between line items by a resolution of the H12A. The cost of all activities to be
financed by the taY increment will not exceed, without formal modificafion, the budget for the
ta�c increments set forth on E�ibit A.
Section 10. Estnnated Amount of Bonded Indebtedness. The expenditures authorized by
this Tas Increment Financing Plan may be paid for either on a pay-as-you-go basis or paid from
the proceeds of taY increment revenue bonds or notes. The Authority anticipates issuing a tax
increment revenue note to provide pay as you go financing. If bonded indebtedness is issued by
the HRA or the City, the principal amount is estimated not to exceed $5,000,000.
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Section 11. Sources of Revenue The costs outlined in Secrion 9 above will be financed
from proceeds of the sale of revenue bonds or notes, or on a pay as you go basis through the
annual collection of tax increments. In addirion, costs will be financed by loans or grants made
by other public agencies for the Development, and private financing obtained by the Developer.
The total development cost of the Development and Housing Development, excluding the costs
of the anticipated future development of the Cultural Center, are estimated to be appro�mately
$37,000,000, of which approximately $24,000,000 aze construction costs.
Potential public sources of revenue to pay the costs of the Development are the Livable
Communities Grant Program of the Metropolitan Council, grants and loans from the City of St.
Paul's Staz Program, and tax increment revenue generated from the Authority's T� Increment
Financing District No. lA (Saint Paul Neighborhood Business Development Program) ("TIF
District No. lA") as set forth on E�chibit A attached hereto. The use of tas increment revenue
from TIF District No. lA shall be treated as a loan and shall not exceed the principal amount set
forth on Exhibit A, shall bear interest at a rate not to exceed 8% ar the maacimum rate permitted
under Section 469.178, subd. 21, and the ma�imuxn term shall be 25 yeazs. The Developer will
contribute equity or obtain private financing for the remaining costs of the Development.
Section 12. Estimated Captured Taac Capacitv and Estimate of Tas Increment. The most
recent taY capacity of Tax Increment Financing District is estimated to be $48,283 as of January
2, 20�1. The estimated captured tax capacity of Tax Increment Financing District at completion
is estunated to be $427,796.
The HRA elects to retain all of the captured tas capacity to finance the costs of Tas
Increment Financing District. The HRA elects the method of taac increment computation set
forth in Minnesota Statutes, Section 469.177, subd. 3(a).
Section 13. Twe of Tax Increment Financing District. Tax Increment Financing District
is a redevelopment district established, pursuant to Minnesota Statutes, Section 469.174, Subd.
10. Pazcels consisting of 70 percent of the area of the Ta�c Increment Financing District are
occupied by buildings, streets, utilities, paved or grauel parking lots, or other similar structures
and more than 50 percent of the buildings, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance.
The Tas Increment Financing District contains 4 parcels. 100% of the parcels aze
occupied. More than 50% of the buildiugs located in the Tas Increment Financing District are
structurally substandard. The reasons and supporting facts for these deteiviinations are on file
with the Executive D'uector of the HRA..
The HRA and the City have deteimined that the proposed development of the Taac
Increment Financing District would not reasonably be expected to occur solely through private
investxnent within the reasonably fareseeable future and that the increased market value of the
site that could reasonably be expected to occur without the use of tas increment financing would
be less than the increase in the market value estimated to result from the proposed development
after subtracting the present value of the projected ta�c increments for the maximum duration of
the Tas Increment Financing Dishict pemutted by the Taac Increment Financing Plan.
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Section 14. Duration of Tazc Increment Financing District. The duration of Taac
Increment Financing District will be 25 years from the receipt of the first ta�c increment. The
date of receipt of the first taY increment is expected to be the first half of 2004. Attached as
E�chibit B is the projected receipt of tas increments from the Tas Increment Financing District.
Section 15. Estimated Imnact on Other Tasine 7urisdicrions. If the construction within
the Tax Increment Financing District would not haue occurred without ta�c increment financing,
the impact is $0 to the other taYing jurisdictions. Notwithstauding the fact that the construction
would not have occurred without tax increment assistance, the estimated impact of TaY
Increment Financing Distdct if the "but for" test was not met is set forth on E�ibit C.
Secrion 16. Modificarion of TaY Increment Financina District and/or Tax Increment
Financin� Plan. No modifications to Tax Increment Financing District or the Taac Increment
Financing Plan have been made as of the date hereof.
Section 17. Modifications to Tas Increment Financine District.
In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any:
1. reduction or enlargement of the geographic area of the Tu� Increment Financing
District;
2. increase in amount of bonded indebtedness to be incurred, including a
detennination to capitalize interest on debt if that deternunation was not a part of
the original plan, or to increase or decrease the amount of interest on the debt to
be capitalized;
3. increase in the portion of the captured net ta�c capacity to be retained by the HRA;
4. increase in total estimated tax increment expenditures; or
5. designation of additional property to be acquired by the HI2A,
shall be approved upon notice and after the discussion, public hearing and fmdings required for
approval of the original Tax Inerement Financing Plan.
The geographic area of the Tax Increment Financing District may be reduced, but shall not be
enlazged after five years following the date of certificarion of the original net taar capacity by the
County Auditor. The requirements of this pazagraph do not apply if (1) the only modification is
elunina6on of parcel(s) from the Tax Increment Financing District, and (2)(A) the current net ta�c
capacity of the pazcel(s) elixninated from the Tas Increment Financing District equals or exceeds
the net tas capacity of those pazcel(s) in the Taac Increment Financing District's original net tas
capacity, or (B) the HI2A agrees that, notwithstanding Minnesota Statutes, Section 469. 177,
Subd. 1, the original net taY capacity will be reduced by no mare than the current net ta�c capacity
of the parcel(s) eliminated from the Taac Increment Financing Dishict.
The HRA must notify the County Auditor of any modification that reduces or enlazges the
geographic area of the Tax Increment Financing District or the Redevelopment Project Area.
1299000v8
aa-}r�
Modifications to Ta�c Increment Financing District in the form of a budget modification or an
expansion of the boundaries will be recorded in the Ta�c Increment Financing Pian.
Section 18. Adwuustrative Exnenses.
In accordance with Mumesota Statutes, Section 469.174, Subd. 14, and Minnesota
Statutes, Secrion 469.176, Subd. 3, administrative expenses means a11 expenditures of the HRA,
other than:
amounts paid for the purchase of land or amounts paid to contractors or others
providing materials and services, including architectural and engineering services,
directly connected with the physical development of the real property in the
district;
2. relocation benefits paid to or services provided for persons residing or businesses
located in the district; or
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 provided by bond
counsel, fiscal consultants, and plarnung or economic development consultants. Tas increment
may be used to pay any authorized and documented administrative expenses for the Ta�c
Increment Financing District up to but not to exceed 10 percent of the total ta�c increment
expenditures authorized by this Talc Increment Financing Plan or the total tas increment
expenditures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, taac increments may be used
to pay for the county's actual administrative expenses incurred in connection with the Tas
Increment Financing District. The county may require payment of those expenses by February
15 of the yeaz following the yeaz the expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall
deduct an amount equal to appro�mately .50 percent of any taac increment distributed to the
HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in
the state general fund to be appropriated to the State Auditor for the cost of financial reporting of
tax increment fmancing information and the cost of examining and auditing authorities' use of
tax increment financing.
Section 19. Limitation of Increment
Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no taac increment shall be
paid to the HRA for the Ta�c Increment Financing District after three (3) years from the date of
certification of the original net tax capacity value of the taYable property in the Tas Increment
Financing District by the County Auditar unless within the three (3) year period:
1299000v8
oa�a8�'1
(1) bonds have been issued pursuant to Minnesota Statutes, Section
469. 178, or in aid of a proj ect pursuant to any other law, except revenue bonds
issued pursuant to Minuesota Statutes, Sections 469.152 to 469.165, or
(2) the HIZA has acquired properly within the Taac Increment
Financing District, or
(3) the HRA has constructed or caused to be constructed public
improvements within the Tax Increment Financing District.
The tax increment pledged to the payment of bonds and interest thereon may be
dischazged and may be terminated if sufficient funds have been irrevocably deposited in the debt
service fund or other escrow account held in trust for all outstanding bonds to provide for the
payment of the bonds at maturity or redemption date.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6:
if after four years from the date of certification of the original net taac capacity of
the tax increment financing district pursuant to Minnesota Statutes, Section
469.177, no demolition, rehabilitation or renovation of property or other site
prepazation, including qualified improvement of a street adjacent to a parcel but
not installation of utility service including sewer or water systems, has been
commenced on a parcel located within a tax increment fmancing district by the
authority or by the owner of the pazcel in accordance with the tas increment
financing plan, no additional ta�c increment may be taken from that parcel and the
original net tas capacity of that parcel shall be excluded from the originai net taac
capacity of the taac increment fmancing district. If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or renovation or
other site preparation on that parcel including qualified improvement of a street
adjacent to that parcel, in accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the activity has commenced and
the county auditor shall certify the net tas capacity thereof as most recently
certified by the commissioner of revenue and add it to the original net taac capacity
of the tas increment financing district. The county auditor must enforce the
provisions of this subdivision. For purposes of this subdivision, qualified
nnprovements of a street are limited to (1) construction or opening of a new
street, (2) relocation of a street, and (3) substantial reconstruc6on or rebuilding of
an existing street.
Section 20. Use of TaY Increment
The HRA hereby deternunes that it will use 100 percent of the captured net tas capacity
of taYable property located in the Tax Increment Financing District for the following purposes:
i. to pay the principal of and interest on bonds used to finance a project;
iz�000�a
aa-ar�
2. to finauce, or otherwise pay the capital and adininistrarion costs of the
Redevelopment Project Area pursuant to the Muuiesota Statutes, Sections
469.001 to 469.047;
3. to pay for project costs as idenrified in the budget;
4. to finance, or otherwise pay for other purposes as provided in Mivnesota Statutes,
Section 469.176, 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 otherwise pay premiums and other costs for insurance, credit
enhancement, or other security guaranteeing the payment when due of principal
and interest on taac increment bonds or bonds issued pursuant to the Taac
Increment Financing Plan or pursuant to Minnesota Statutes, Chapter 462C and
Minnesota Statutes, Sections 469.152 to 469.165, or both; and
7. to accumulate or maintain a reserve securing the payxnent when due of the
principal and interest on the taac increment bonds or bonds issued pursuant to
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469152 to
469.165, or both.
These revenues sha11 not be used to circumvent any levy limitations applicable to the
HRA nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Section 21. Notificafion of Prior Planned Improvements.
The HRA shall, after due and diligent search, accompany its request for certification to
the County Auditor ar its notice of the Tax Increment Financing District enlargement with a
listing of all properties within the Tax Increment Financing District or area of enlargement for
which building permits have been issued during the eighteen (18) months immediately preceding
approval of the Taa� Increment Financing Plan by the municipality pursuant to Minnesota
Statutes, Section 469.175, Subd. 3. The County Auditor shall increase the original value of the
Taac Increment Financing District by the value of improvements for which a building permit was
issued.
Section 22. Excess Taac Increments
Pursuant to Minnesota Statutes, Section 469176, Subd 2, in any year in which the tax
increment exceeds the amount necessary to pay the costs authorized by the Plan, including the
amount necessary to cancel any tas levy as provided in Minnesota Statutes, Section 475. 61,
Subd. 3, the HRA sha11 use the excess amount to do any of the following:
1. prepay any outstanding bonds;
2. discharge the pledge of taac increment therefor;
1299000v8
oa.atr�
3. pay into an escrow account dedicated to the payment of such bond; or
4. retum the excess to the County Auditor for redistribution to the respective 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 arder to finance addirional public costs in the Ta�c Increment Financing Disirict or
Redevelopment Project Area.
Section 23. Requirements for AQreements with Develoroers.
The FII2A will review any proposal for private development to determine its conformance
with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate
this effort, the following documents may be requested for review and approval: site plan,
construction, mechanical, and electrical system drawings, landscaping plan, grading and storm
drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the
City to demonstrate the conformance of the development with city pians and ordinances. The
HRA may also use the agreements to address other issues related to the development.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no more than 10 percent, by
acreage, of the property to be acquired in the Tax Increment Financing District as set forth in the
Tasc Increment Financing Plan shall at any time be owned by the HRA as a result of acquisition
with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469. 178, without the
HIZA having, prior to acquisition in excess of 10 percent of the acreage, concluded an agreement
far the development or redevelopment of the property acquired and which provides recourse for
the HRA should the development or redevelopment not be completed.
Section 24. Other Limitations on the Use of Ta7c Increment.
General Limitations. All revenue derived from tax increment shall be used in
accardance with the Ta�c Increment Financing Plan. The revenues shall be used to
finance, or otherwise pay the capital and administration costs of the
Redevelopment Project Area pursuant to the Minnesota Statutes, Sections
469.124 to 469.134;
These revenues shall not be used to circumvent existing levy limit law. No
revenues derived from tax increment shall be used for the acquisition,
construction, renovation, operation or maintenance of a building to be used
primarily and regularly for conducting the business of a municipality, county,
school district, or any other local unit of government or the state or federal
government, or for a commons area used as a public park, or a facility used for
social, recrearion or conference purposes. This provision shall not prohibit the
use of revenues derived from tas increments for the construction or renovation of
a parking structure.
2. Pooling Limitations. At least 75 percent of taac increments from the TaY
Increment Financing District must be expended on activities in the Tas Increment
Financing District or to pay bonds, to the extent that the proceeds of the bonds
ize9000�s 9
o a -a�Y�
were used to finance acfivities within said district or to pay, or secure payment of,
debt service on credit enhanced bonds. Not more than 25 percent of said ta�c
increments may be expended, through a development fixnd or otherwise, on
activities outside of the TaY Increment Financing District except to pay, or secure
payment of, debt service on credit enhanced bonds. For purposes of applying this
restriction, all administrative expenses must be treated as if they were solely for
activities outside of the Tas Increment Financing District.
3. Five Year Limitation on Commitment of Taa� Increments. Ta�c increments derived
from the Tas Increment Financing District shall be deemed to have sarisfied the
75 percent test set forth in pazagraph (2) above only if the five year rule set forth
in Mivnesota Statutes, Section 469. 1763, Subd. 3, has been safisfied; and
beginnuig with the siacth year following certification of the Tax Increment
Financing District, 75 percent of said tax increments that remain after
expenditures pemutted 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 Tas Increment
District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d)
provided that the expenditures meet the following requirements:
(1) they are used exclusively to assist housing that meets the
requirexnents for a qualified low-income building as defined in Section 42 of the
Internal Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of housing as defined under
Section 42(c) of the Code less the amount of any credit allowed under Section 42
of the Code, and
(3) They are used to (i) acquire and prepare the site for housing, (ii)
acquire, conshuct or rehabilitate the housing or (iii) make public improvements
directly related to the housing.
Section 25. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la, the county board may require
the HRA to pay for all or part of the cost of county road 'unprovements if, the proposed
development to be assisted by ta�c increment will, in the judgxnent of the county, substantially
increase the use of county roads requixing conshucdon of road improvements or other road costs
and if the road improvements aze 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 will have little or no impact upon county roads. If the county elects to use increments to
unprove county roads, it must notify the HRA within thiriy days of receipt of this Plan.
iz99000�s 10
oa-���
Section 26. Assessment Agreements.
Pursuant to Muuiesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an
agreement in recordable form with the developer of property within the Tas Increment Financing
District which establishes a m;nimum market value of the land and completed improvements for
the duration of the Ta�c Increment Financing District. The assessment agreement shall be
presented to the assessor who shall review the pians and specifications for the improvements
consiructed, review the market value previousiy assigned to the land upon which the
improvements are to be constructed and, so long as the minimum mazket value contained in the
assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the
assessor may certify the m;n;mum market value agreement.
Section 27. Admiuistration of the Ta�c Increment Financing District.
Admiuistrafion of the Tas Increment Financing District will be handled by the Executive
Director of the HRA.
Secfion 28. Financial Reporting Requirements.
The HRA will comply with all reporting requirements of Minnesota Statutes, Section
469.175, Subd. 5, 6 and 6a.
iz99000�s 11
oaa��
..��:
TAX INCREMENT FINANCING PLAN BUDGET
Name of District:
TyQe of District:
Duration of District:
Pan Asian Village
Redevelopment
25 years
SOURCES OF FUNDS
AMOUNT
Tas Increment Revenue
Interest of Invested Funds
Bond Proceeds
Loan Proceeds
Real Estate Sales
Special Assessments
RenULease Revenue
Other Soucces (Specify):
Grant from Metropolitan CouncIl
City Star Loan
TIF Dishict No, lA/E3I2A other
Total Sources of Funds
USES OF FUNDS
Acquisirion, Demolition, Relocation
Site Improvements/Prepazation Costs
Installarion of Public Utilities
Pazldng Facilities
Streets and Sidewalks
Interest Reduction Payments
Bond Principal Payments
Bond Interest Payments
Loan Principal Payments
Loan/Note Imerest Payments
Administrarive Costs
Pollurion Abatement
Bond Issuance Costs
Capitalized Interest
Contingency
Other Uses (Specify):
Tas Credit Rental Housing
Bond Discount
Transfers Out (Specify):
Loan Repayment
Total Uses of Funds
` Excludes State Auditor deducrion
$18,746,306'
808,750
950,000
1,300,000
$21,805,056
AMOUNT
$6,700,000
1,100,000
980,000
7,000,000
1,874,630
1,500,000
850,426
1,800,000
$21,805,056
1299000v8 E�-1
��
CRY OF ST PWl-P/J1 A54N PROJEtt
h."�IBIT B
kt New Retlevelopiren� Datrict
Eon Rate 2.3100Y
As Vou Go Revenue Na[e �te ZSp %
As Yau Go Revenue No[e ISSUED ?11rot
a106p. CmNWtim Ra6o WA
imPS Fust Taz incremen[ 2005
: inaement it rererveE in 2002 a 2003. Sstricl wID be shortenetl
s of Ta�c Invement 26
FxtensionRate-SpteEtlumbanRa[e(USetlfortolal�esnot�inrmmenl7 0.6000� Pay2002
alDisPanhesPercent 025455 PaY2W2
FxtensionRate-AreaWiOe 1.564W Pay20�2
EnenspnRate-Frozen 1.30259 Pay2002
ErtensionRate-Curten[ 1.30259 Pay2002
iunt M inoertwntwili vary dxpending upon mxeket value, az 2tes, dass rdtes.
:WCAaf sUetlWe, arW i�eGOn on market vdlue. I�aYan on tax 2tes
E#emionfta�e-STATEE�RnTE O600W fa6250 e6,%0 EST
Ea4rsqnRale-tOTALCRYMTE 1.]0259 10'/S3� 1<O,C89 EST
�AREqWIOERATE 15869] 55.365 E8,80.5 EST
-STATEEORATE 0.80000 21]$00 f30.500 ESi
�TOTALCINRATE 1J0259 f62p]S 2Hd95 EST
f�,e'l5,000 0.0006900 Sd29 EST
TOTALTPXES l]].6G9
TOTAL TAXES PAIO REST
Rah TvCaoacM Taxes
�qREqWIDEMTE 15669] 9,566 16,939 EST
-StATEE�R?TE O6CW0 3],500 t2.500 EST
�TOTALCIfTMTE 10d159 2J,95d 06.dll EST
MaMetValue Taxes Totai ToWI
Developmen[ SQ.Ft Sq Fl Par Taxes Tax UO�aN Tax Market
Tvpe Um[s Units So.FtNnit Rate Vaiue
�� iW ]2.500 $39� 28�.635 164.2W 1 WY 200% ].250.(
suo 100 106.]50 $399 G33.fi69 21]500 200Y. t0.8]5.(
PrePared by Ehlers Inc. -Pleau review all asSUmpGons.
2005
GapN el]
oa -2r�
PAN�COMM-2002-4BiST.xls
}2NE3 CT' OF ST VN14 Pµ ASWI ]RQIECT Vaq t ol]
oa-ar�
Beginniig Perio�
0.0
0.0
0.0
00
0.0
OS
1.0
1.5
2.0
25
3.0
3.5
4.0
6.5
5.0
55
60
65
70
]5
80
85
90
9.5
100
105
11 0
11.5
120
125
130
13 5
140
16.5
150
15.5
18.0
16.5
no
1].5
180
18.5
190
195
20 0
20 5
210
21 5
22 0
22 5
23 0
23.5
26 0
26 5
250
1-AU9
1-Feb
i-AUg
1-Feb
1-AUg
1-Fe0
1-AUg
t-FeD
1-PLg
1-Feb
YAUg
1-Fe0
1-AUg
1-FeE
1-AUg
1-Fe�
1.AUg
i-Feb
1-AUg
t-Fe�
1-AU9
1-Feb
1-AUg
t-Feb
1-AUg
i-Feb
1-AUg
t�Feb
1-AUg
i-Feb
1-AU9
i�Feb
i-AUg
1-Feb
1-AUg
i-Fe0
t-AUg
1-FeD
hAUg
1-Feb
1-/w9
1�Fe0
bAUg
i-FeD
t-AUg
1-Feb
1-AUq
1-FeD
i-AUg
YFeh
1-AUg
i-Fe0
1-AU9
t-Feb
2003
2003
2004
2004
2005
zaas
2006
2006
200]
2a0]
2008
2008
2009
2009
2010
2010
2011
201t
2012
2012
2013
2013
20ta
-2014
2015
2015
20t8
2016
2017
201]
2018
2018
2019
2019
2020
2020
2021
2021
zo2z
2022
2023
2023
2024
2026
2025
2025
2026
2026
202]
202�
2028
2028
2029
2029
2030
Ann�31
Base Taz
44.151
6a.t51
C4.151
44.151
44.151
66J51
44.151
A6.151
6a.151
44.151
d4.151
44,151
44.151
44,151
Ca.151
66.151
44.151
44.151
44.151
d6151
66,151
41.151
44.151
da.151
d6.151
44.151
44,151
M16,151
44.151
46.151
44.151
4a.151
46,151
C6151
G4.151
64.151
44.151
44.151
44.151
G6,151
43.151
44.151
44.151
44.151
44,151
44.151
64.151
44.151
44151
4a.151
A4.151
46.151
64.15t
44,151
44,151
hqecl CapWretl SertmMnwl Sfate SemiPmual AtlirvNPOOGn9 $ertiMnual SpnY-Mnual Fntling Perietl
T� TaxCapadry Ta< Autl.Payment GrossTac PaNrent eontl Net PaymentOaG
404.339
404.339
613.5/9
413,5]9
423,032
623,032
432.]04
632,]04
662.600
442.600
452.]23
452.�23
d63,081
<63.081
4]3,8]8
6]3,6]8
48a,520
asa.sxo
695,812
495,812
506.960
506,960
518.91
518,5]1
53qaW
530,450
562,603
562.603
555,0.t]
555.�3]
%�.]58
56�.158
SBO,7l3
580.7]3
596,088
594,088
60�.]12
609.912
621.649
621.849
635,909
635,909
fi50.499
850,699
665,625
865,625
680,696
680,686
696.320
896.320
]12.305
0
0
0
0
3fi0188
360,188
369,428
369,428
3�8,881
3]8,881
388,553
388,553
398,449
398,949
a08,512
608,5]2
418930
418,930
429 52]
a29.521
d60,369
440,369
451 461
0.51?61
d62.809
482,8�9
4]4,420
474,320
d86299
488.299
498,452
498,452
510,886
510,886
523,601
523,BW
536,622
536,622
549,93]
5M19.93]
583,5G1
563 581
5]],498
ST/ 498
59i,l58
591 �58
169
1�
0
0
0
0
234.589
234.589
2a0,601
260,BO1
246.]64
2a6.76a
253,063
253,063
259.508
259.508
2fi6,101
266,101
2]2.8a]
2]2.8a]
2]9.]49
2]9.]49
286,010
286.810
296.036
294.036
901,425
301p25
308,98]
308.98]
316,724
316.T24
326,679
326,639
3]2.]3]
3J2.]3�
341.022
3a1.022
3a9,d99
349499
358.1]i
358.1]1
36],044
36],044
3]6,122
3]6,122
385,6p9
385,409
394,911
396,9H
606,633
606,633
414,S19
414,599
624,]56
a2a,]56
635,165
0
0
0
0
(1.173)
(1.7]3)
(1,203)
(1,203)
(123a)
(1294)
(1265)
(1,265)
(1298)
(1,298)
(1.331)
(1.�1)
(1.�)
(t.364)
(1,399)
ry.399)
(1,434)
(1.43d)
(1670)
(1 6l0)
(1.50])
(1.50])
(1.545)
(1.Sa51
(1.584)
(1.586)
(1,623)
(1,623)
(t.66aJ
(1.884)
(t,]OS)
(i,]OS)
(1.]4])
(1.]4])
(1.791)
(t.191)
(1.835)
(1.835)
(i,�t)
(1.881)
(1.92])
(1.92])
(t.WS)
(1,9]5)
0
0
0
0
233.616
233.416
239.60a
239.406
245.530
2a5,530
251.198
251.]96
258,210
258.210
284.]]1
264]]t
2]1.483
211.dB3
2]8.350
2]8.350
285.3]6
285,316
292.56d
292.566
299,918
299.918
307.da2
30T.442
31B.14o
315.ta0
323,016
323,018
331.0]4
331,074
339.317
339.3/]
367.]52
347.]52
356,381
356,381
3&5.209
365209
3]4,241
374,261
383,682
383,482
392.93]
392,9a1
402,809
402,609
612.506
612.506
422.631
622.631
432.989
P�eparetl by Ehiers 1nc..Please review all assumPtions.
0
0
0
0
(23.342)
(23.362)
(23.940)
(23.9a0)
(24.553)
(24.553)
(25.180)
(25.180)
(29,256)
(29.992)
(29.992)
(90.744)
(30.]4A)
(31,516)
(31,514j
(J2,302J
(32,302)
(33,10])
(33,10])
(33.932)
(33.932)
�3a,ns>
�x.ns�
(35,638)
(35,638)
(3fi,521)
(36,521)
(3].626)
(31,624)
(38,348)
(38.368)
(39.294)
0
0
0
0
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.�62)
(211.362)
(211.362)
(211.362)
(21t.362)
(2H.362)
Q11.362)
(211.362)
(211.3G2)
(211.362)
(2H.362)
(211.362)
(211.382)
(211.362)
(211.3627
I2nasz)
(211.362)
(211.362j
(211.362)
(211.362)
(211.3627
(211.362j
(211.362J
(211.362j
(211.362)
(2t1.382)
(2N.362)
(211.362)
(211.382)
(211.362)
(21t,362)
(211362)
(211.362)
(211.362)
(2N.362)
(211,362)
(211.362)
(2n.362)
(211.362)
0
0
0
0
0
(1288)
(1288j
6.101
6,101
9,615
9,615
15256
15256
21,M]
21.02]
26,932
26.932
32,9]3
32.9]3
39.iS1
39.153
65.4]6
65,a16
51,946
51.946
5e.s5a
$g 5fi6
85,336
65.336
72264
72264
T9.352
]9.352
88.604
86.604
94.024
94.02a
m�,sia
mtsia
1p9,381
109.381
11],326
117,326
125,455
125.455
133.]]2
133.]]2
162.281
142.281
150,986
150,986
159.893
159,893
169.005
169.005
1]8.328
0.0
0.0
0.0
o.o
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
a.5
5.0
5.5
6.0
6.5
].0
].5
80
BS
90
9.5
10.0
10.5
11.0
11.5
i2.o
12.5
13.0
13.5
id 0
14 5
150
15.5
16.0
�ss
i�.o
1].5
18.0
10 5
19.0
19 5
20.0
20 5
21 0
21 5
22 0
22 5
23.0
23 5
24 0
24 5
25 0
25 5
�
1-Feb
idwg
1-FeD
1-Aug
1-Feb
1-AUg
7-Fe0
1-AU9
t-Feb
1-AU9
1-Feb
1-AUg
1-Fe0
1-AUg
1-Feb
1-AUg
1-Feb
1-AUg
1-Feb
1-AUg
1-Feb
1-AU9
t-FeD
1-AUg
t-Feb
t.AU9
1-Feb
1-AUg
i-Feb
1-AUg
i-Feb
1-AU9
YFeb
t-AUg
1-Feb
1-AUg
i-Feb
1-AUg
1-Feb
i-AUg
1-Fe0
1.AUg
1-Feb
i-AUg
1-Feb
1-AUg
1-Feb
idwg
1-Feb
�
1-Feb
1-AUg
1-Fet
2003
2004
2006
2005
2005
2006
2006
2007
200]
2008
zaoe
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2016
2015
2015
2016
2016
2011
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2026
2025
2025
2026
2026
202]
202]
2028
2028
2029
2029
2030
2a30
PAlf-COMM-2 W 2<BRSTxIs
tRNG3 GIfYOF3TPNIL.PMlASLW PRQIER Pap�]a!]
VV �VY,
jR NPx R20EV¢IWrt4nt GS(nQ
Son Rate O.00OOY.
As Yott Go Revenue Note Rale ].50%
0.s Yau Go Revenue Note ISSUED 2MlOt
31 DisP CanNbuGaf Ralb WA
imes FirstTanlnUement 2005
: incremenl �s recerved in 2002 w 2W3. OiStric[vnll be Sliatened
s oFTaz Inaenwnt 26
Ext¢nstanRafe-StateEtluqCqiRate(USetltwtalalbxesno[qxincrement) 0.60000 Pay2002
alDispari4esPercRnt a25655 PaY2002
ExtensionRate-AreaWae 1.56497 Pay2002
ExtenswnRate-Frozen 1.30259 Pay2002
EztensionRate-Curten[ 130259 PaY2002
mnt � increment will vary tlepentling upon (reiket value.+ax 21es, class 2tes,
:WCOan scheEUle. a�b iMla4on an market value Inflation on taz 2tes
�ot �e pONretl.
LanG Market BuA�ing Markel Total Marke[
38.400 203.800 262.200
123.BW
-STATE EO RATE
�TOTPLCT'RFTE
Mafk¢tValue Tazes
Develapment Sq.Ft Sq FL Per
000000 0
f ]0259 62.500
Totai Total
Taxes Tu Capaary
Frepared by Ehlers Inc • G�eau review all assumptians.
0 EST
8t,d13 ESt
Tax Market
PANLOMM-200148-0ST.sls
}RCq! CIfY OF $TGAl1L •PN11lSNN ORQIEG! P�p� �ef i
a�
Begimiig Penoa
00
00
0.0
0.0
o.o
0.5
1.0
1.5
2.0
2.5
3.0
35
6.0
4.5
5.0
5.5
6.0
6.5
]0
7.5
8.0
85
9.0
95
100
10.5
i1.0
11.5
t2.0
72.5
13.0
135
160
145
150
155
160
16.5
t].0
i].5
180
185
190
195
20 0
20 5
21 0
21 5
22 0
22 5
23 0
YS 5
240
24 5
zs o
1-!wg
i-Feb
1-lw9
i-Pen
i-AU9
1-Feb
i-AU9
1-Feb
i-AUg
t-fen
YAU9
1-Fe0
i-N,g
�-Fen
i-AU9
1-Feb
t-AUg
1-FeG
1-AU9
t-FeD
1-AU9
YFeb
}-AUg
1-Feb
1-AUg
1-FeB
1-Au9
1-Fe0
t-AUg
1-Feb
1-AU9
�-FeP
1-AU9
1-Feb
1-AU9
1-Fe�
1-AU9
1-Feb
L/w9
t-Feb
1-AU9
1-Feb
YAUB
5-FeC
LAU9
1-Fe�
1-AU9
YFeb
1-AUg
1-Feb
1-AUg
t-Feb
1-AU9
1-Fe�
20U3
2003
zaoa
2004
zaos
20a5
2006
2006
2W]
200]
2W8
zooe
2009
2009
201Q
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
2U16
2016
201]
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2026
2026
2025
2025
2a26
2026
2021
202]
2028
2028
2029
2029
203�
Ai�nual
Base T�
8,t33
4,133
d,i33
6.133
a�aa
a.t33
4,t33
6.133
6.13J
4,t33
6,133
6,133
6,133
4,133
4.133
4,133
d,t33
6.133
6.133
4.133
4,133
d,t33
6.133
4.t33 - -
4,t33
4,133
4.133
4,133
6.133
6.133
4,133
4,133
4,133
4,133
4.133
4.133
6.133
4.133
4,133
4,133
6,133
4,133
4,133
6.133
4,133
4,133
6,133
6,133
4.133
6,133
4.133
b,1J3
4.133
4.133
d.133
Wb;eG
T�
6.��
4,133
4.133
6,133
4,133
6,133
62.500
62,500
62.500
62.500
ez,saa
62,500
62.500
82,500
82.500
62.`.AO
62,500
62.500
62.500
62.500
62.500
62.W0
62,500
82,500
62,500
62,500
82,500
62,500
62,500
62.500
62,500
82,500
fi2,500
62.500
62,500
62,500
62.500
82,500
82.500
62.500
62.500
62,500
62,500
62.500
62.500
62,500
62,500
62.SW
62,500
62,500
62.`AO
62,500
62,500
62,500
82,500
Capturetl Se�ra-Mnual Sbte Se�ri�Ninual ANrvNPoofmg SertaAmual SemFMnual EnQng PerioG
Taz Gpatlry Tax AuE. P2yment Cuass Ta�t Payment BOnE Net Paymant Oat�
0
0
0
0
a
0
58.36]
5g.35]
58.36]
58.38]
�.�z
58,36]
58.%]
sa.ae�
56,35]
58.38]
58.36]
58,36]
56,36�
58.36�
SB.36]
58,38]
58,36�
56,367
58,36]
58,36]
58,367
58.39]
58.38�
58.36]
56.367
58.367
58,367
59,36]
58,36�
58,38]
58,36]
58,36]
58,367
58.3E�
58,36�
58,367
59.36�
56,36]
56,361
58.3G7
58,36]
58,36]
58,361
58.361
56.367
58.96]
58.38]
58,36]
56,361
0
0
0
0
0
0
38.014
38,014
38,016
38.014
aa.ata
38,01a
38,016
38.014
38,014
38.ma
38.016
38,016
38,016
38,014
38,016
J8.014
38.016
38,014
38,01a
38.016
38,014
38,014
38.014
38,014
38,414
38,014
38.014
38,014
3E.m4
38,014
38,014
36.014
38,014
38.01a
38,014
38,014
38,014
38,01a
38,014
38,014
38,m4
38,016
38,014
38.014
38.Otd
38.01a
38,016
38,016
38,014
0
0
0
0
0
0
(���
(��)
(��)
I��)
It�)
(��)
(19�)
(+�l
(190)
���)
(��)
(�so�
(��)
(190)
(190)
It9a)
(190)
(194�
(1901
(190)
(190)
(��1
(��)
S��)
(��)
(��)
���)
(190)
(190)
(190)
(190)
(190)
I��)
(190)
(190)
�190)
(190)
(190)
I��)
(��)
(190)
I��)
(190)
I��I
0
0
0
0
0
0
37.824
]],826
3�,824
31,824
a7,flza
3],824
W,824
3],e24
3],824
3],824
37.824
31.82a
3].826
3],826
3],824
37,824
37.82a
3].824
3�,824
37.82a
3],826
3],824
37,824
3].82a
3].826
3],826
3],824
3],824
3],ffi4
3].824
31.82a
3].824
31.826
3],826
3],826
3�,826
3],826
3],824
3],826
31,826
3�,824
3].82a
3�,82A
3],826
3],824
31.824
PtepareC by EM1lers Ine. -Please �¢view all sssumptions.
0
0
0
0
0
0
(3.]82)
(3,782)
(3.]92)
(3,]82)
(3.]82)
(3,]82)
(3)827
(3,]82)
(9)82)
(3,182)
(3,]82)
(3,782)
(3,182)
(3,]82)
(1.]82)
(3,]82)
(3.182)
(3.182)
(3.782)
(3.782)
f3.]82)
(3,182)
(3,]82j
13.�a2)
(3,]82)
(3,�82)
(3.]82)
(3,]82)
0
0
0
0
0
0
34.062
34.042
36.aa2
34.042
36 062
34,042
34.042
36.062
aa.oaz
34.042
34.042
x.oaz
34.042
36 042
36.062
34.062
36.042
34.042
sa.oaz
34.042
3d.042
36,062
34.642
34.042
3a.042
34.0a2
34.062
34.042
34.042
34.042
34.042
3A.a42
3a.062
34.042
34.042
36.�42
34.042
34.042
36.�62
34.062
34.042
36,042
3d.Od2
aa.oaz
34.042
34.042
3a.042
36.Od2
36.�62
0.0
0.0
0.0
a.0
0.5
1.0
15
2.0
25
30
35
40
4.5
5.0
5.5
60
fi.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
11.5
12.0
12 5
13.0
13.5
id.0
16.5
150
155
160
16.5
1].0
i].5
18.0
18.5
t9.0
19.5
20.0
20 5
21.0
21.5
22.0
22.5
23.0
23.5
24.0
2a.5
25.0
25.5
1-Au9
t-Feb
1-AU9
bPeb
t.Au9
t-Fpb
i-nue
i-'reo
i-AU8
1-Feb
1-AU9
1-Fe0
1-AU9
i-FeE
1-!wB
YFeb
1.AU9
t-PeE
1-Au9
t-FeD
1-AU9
1-Feb
1-AU9
1-Peb
1-AU9
1-Feb
1.AU9
i-Feb
1-AU9
1-Feb
1�AU9
1-FaC
1-AU9
LFeb
1-AU9
1-Feb
t-AU9
1-FeD
i-AU9
1-Feb
1-AUg
1-Feb
YAU9
1-Fe0
1-AU9
1-Feb
1.AV9
1-Feb
1-AU9
1-Feb
i-AUg
t-Fe6
1-AU9
1-Feb
i-AU9
2003
200M1
200a
2005
2005
2006
2W6
200]
200]
2008
2008
2009
2009
zaio
zmo
2011
2011
zmz
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2019
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2026
2025
2025
2026
2026
2azt
202]
zoze
2028
1A29
2029
2030
2030
PAN-COMMd00Z-08-0ST.xls
Y/3Y03 CRY OF ST pM)L-YN! M14NM FRQJECT P�p� 5 ot]
aa-a�wt
n Rate
: You Go Revenue Note Rate
: You Ga Revenue Note ISSUEO
ti5P CanVr�ution RaEo
tes Firsi Taz Inaement
mementisrece�veAin2W2or2003. d¢ficlwipEeshaM1e�ed
of Tan Increment
�[msion Ra�e -State Etluotion Ra[e (USad fwbtal e.ie5 wt ba maement)
O�sparities Percent
RenSwn Rale -Are3 Wtle
dension Rale - froxen
aension Ra[e-CUrtent
it of invement vnll vary tlapentling upon market value, iax 2tes, tlass 2tss,
UCOIXI SCM1¢dllk, dfitl IIN�140f1 IXI (RM12t valUB. IflfldLql IX16X 2125
New ReCevebprtent D�sNCt
O.00OOY
]SO%
9V01
WA
2005
28
o.eaaoo �arzooz
025655 PdY2W2
1.56497 PaY 2002
1.30259 PaY 2002
1.30259 PaY 2002
LantlMarket BuiitlingM2rke� TolaiMarket
38,600
Cammermi 301,05]
Otner
85]6%
242.200
123,800
990.598 1.SOYo-2.00Ye 39,062
1T3.H00 1.SDk 1.85]
Prepared by Ehlers Ina -Please Yaview all auumptions.
PANLOMM1002d6-0ST.xls
}/3Y03 Clf'/OF 9i PMIL. FMV ASW1 iROJECT PaP 6 al]
Qa - ar�
eegi(utinp PeriaC
0.0
0.0
0.0
0.0
0.0
0.5
1.0
1.5
20
25
3.0
35
60
45
50
55
60
8.5
].0
].5
8.0
8.5
9.0
9.5
10.0
10.5
110
115
12.0
12.5
130
135
140
145
15.0
155
18.0
165
1Z0
il5
i8.a
ies
19.0
19.5
20.0
20.5
21.0
21.5
22.0
22.5
23 0
23 5
2a.0
2a 5
25 0
1-Feb
�
1-Feb
1 Aug
t-Feb
�-�+B
1-FeD
t-fwg
1-Feb
bAUg
1�Feb
t-AUg
1-Feb
1-AU8
1�Feb
1-AUg
1-feb
7-AUq
1-feb
t-AUg
1-Feb
t-AUg
1-Fe0
1-AU9
1-Feb
1-AUg
1-Feb
1-AUg
1�Fe�
1-AUg
1-Feb
1-AU9
1�Feb
1-AUg
1-Feb
t-AUg
1-Feb
t-AU9
1-Feb
1-AUg
1-Feb
1-AU9
1-FeC
1-AUg
1-Fe�
1-AUg
1-FeD
1-A�8
t-Feb
i-AUg
1-Feb
i-AUg
1-FeD
i-Aug
1-Feb
2003
2003
2W4
2004
2005
2005
2006
2008
200]
2007
2008
2008
2009
2009
2010
2010
2011
2011
2o1z
2012
2013
2013
2014
2616
2015
2015
2016
2�16
2017
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
202]
202]
2028
2028
2029
2029
2030
Mnual Project GP�� Se�Mn�al S6te Serti-Mnual ACrteNPOO�r.B Sem-Mnual Se�-Mnua� Endn9 Periatl
B25e Tax 7az Tu Capatity Tax AuQ Pdy�mnl Gross Taz Payment BonG Ne[ Payment Datc
48283
48283
68.283
48.28J
48.283
68.283
48.283
a8.283
C8.283
48,283
48.283
48,283
48.283
48,283
48,283
d8,283
A8,2B3
aa,zaa
C8,283
48,283
d8.283
48.283
C8.283
48.283
d8283
48.283
48,283
d8183
48,283
48283
48,283
48,283
48,283
C8.283
48,283
48,283
48,203
48 283
48,283
48283
48 283
48283
68,283
48.283
48.283
66283
48283
48283
68283
48,283
68.283
48283
48.283
48,283
48.283
48.283
68$83
aa2e3
48.283
408,4]2
608,4]2
6]6,0]9
4]6,0]9
aB5,532
685,532
495,204
695.206
505,100
505,100
515723
515,713
525,581
525,581
536,1]8
536,118
SM1] 020
56],020
5`A,112
558,112
589,460
569,660
581 p]t
591 011
592,950
592,950
605,1�3
605,10.3
619,537
61],53]
830,258
630,258
60.3,2]3
643,2]3
65G,588
856,588
6�0,212
6T0,212
686.149
684,149
698,409
898,603
]12,999
712,999
]2],925
T2].925
T63,196
4
4
0
0
360,188
3fi0.188
62],796
62].]96
A3T.249
L37269
448.921
446,921
656,816
d58,816
466,940
466,9C0
an.ne
an,2se
48],896
68].894
498,136
498.736
509.828
509.828
521.II]
sztm
532.18�
532.]8]
544.666
566,866
556,819
558.819
569,253
5G9.253
581.974
581,9]a
596.989
594.989
608,305
606,305
621,928
621.928
635,B66
635,8fifi
650,128
650.126
6Ga,]15
666,]15
6]9.841
0
0
0
0
23a,589
236.599
2]8.621
2]8.621
zaa.ne
284,T/8
291.OT/
291,OT]
29].522
297.522
304p16
304,118
310,861
310,861
317,763
31],]W
326,826
324,824
332.049
332.0a9 -
339.46�
339.440
347,002
36].002
354,TJ8
354.738
362.854
362,65d
3]0,]52
3]0,]52
3]9,037
3]9,03]
38],513
38�,513
398,186
396,iB6
405,059
605.059
414,136
414,136
623.626
623,424
432.926
A32.926
d42,8A]
442.64]
452,593
452,593
462.769
462,769
4]3,180
0
0
0
0
233.416
233,616
2]1.228
zn,aze
283,351
283,354
289.622
289,622
296.034
296,034
302,595
302,595
309,30]
309.30]
316,1]6
316,114
323,200
323,2C0
330,388
330,38H
337,743
33].]a3
365,28]
345,26]
asz,sss
352,965
360,840
360,840
368,898
368,898
an,iaz
3]T,142
385,5�6
385,5]6
39a,205
396,205
403,033
403,033
412,066
412,066
421,30]
621,3W
630)61
430,161
0
0
0
a
(1.173)
(1.1]3)
(1.393)
(1,393)
(1.624)
(1.424)
(1,455)
(1,455)
(1.488)
(1,488)
(1,5217
(1.521J
(i.ssaJ
n.ssa>
(1.SB9)
(1.509)
(1 626)
(1,624)
(1,660)
(1,660)
(1,&91)
(1.697)
(1.735J
(1.T35)
�tna>
�tna>
(7,873)
(1,813)
(i.85d)
(1.BSA)
(1,895)
(1,885)
(1,938)
I1,938)
(1.981)
(1,981)
(2,025)
(2.0251
(2.0117
(2.011)
(2.1177
(2.117)
]Sh
Prepare0 by Ehlers Inc -Please review all assumpUans.
0
0
a
0
(23.362)
(23.362)
(27.723)
(21.123)
�ze.sas)
(28,335)
(26.962)
(28,962)
(29.W3)
(29,603)
(30,259)
(35,296)
(35296)
(36,086)
(38,084)
(J6,890)
(36,890)
(37,]16)
(3].116)
(38.558)
(�.�)
(39,620)
(39,620)
(60.303)
(40,303)
(41,20])
(61.20])
(42,131)
(42.131)
(63,0]6)
(63,0]6)
(44.043)
0
0
0
0
(211.362)
(211.382)
(211.382)
(2tt.362)
(211.362)
(211.362)
(2n.362)
(211.382)
(211.362)
(211.362)
(211.382)
(211.362)
(211.362)
(211.362)
(2N,362)
(211.362)
(211.382)
(211.362)
(211.362)
(2ti.3627
(211.382)
(211.362)
(217.362)
(211.3821
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(2H.362)
(211.362)
(211.362)
�
0
a
0
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(1288)
38,143
38,143
43,65]
43,65/
49,298
49,298
55,069
55,069
60.9]3
60,9]3
67,014
67,014
73.195
]3,195
]9,518
79,St8
B5,988
85.988
92.808
82,606
99,378
99.3]8
t06,306
t06,306
113,394
113,341
120.646
120.646
128,066
128,066
135,656
135,656
143,422
163.622
151,368
t51,36R
159.49]
159.4W
18],816
16],814
i]6.323
i]6,323
185,028
185,028
193.935
193.935
203.04]
203,06]
212.3]0
0.0
0.0
o.o
o.o
o.s
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
].5
B.0
8.5
90
95
10.0
10.5
11 0
11.5
12.0
12.5
130
13 5
14.0
14 5
150
15.5
16.0
185
1].0
11.5
18.0
18.5
19.0
19.5
20.0
20.5
21.0
21.5
22.0
22.5
23.0
23.5
2a.0
26.5
25.0
25.5
1-AUg
YFeO
1-AU9
YFeb
1-Aug
1-Feb
1-AUg
t-Fe�
1-AU9
t-Feb
1-AUq
i-Feb
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1-Feb
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1-Feb
1.AUg
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]-Feb
1-AU9
1-Feb
1.Aug
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1-AUg
1-Feb
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1-Feb
1-AU9
1-Feb
�-�+9
1-FeD
1-AU9
1-Feb
1-AUg
1-Feb
i-AUg
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1-Feb
1-twg
1-Feb
1.AU9
1-Feb
1-AU9
1-Feb
2W3
2004
200d
zaas
2W5
2006
2006
200]
200]
2008
2008
2009
2009
2010
2010
2011
]O11
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
201]
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
zoza
2024
2025
2025
2026
2026
202]
2021
2028
2028
2029
2029
2030
2030
PANLOMM-20024BFST.xIs
]llNY3 CIIY OF $T FNIL � PAN ASWI PRQIECI pap� ] M]
a a-�a�\ ?
wMatkeNaWe-ESc
Dfiuence
esent Value MTax Inaement
Likely lo Oavr WiNw� ¶F is Less Than.
22.355.900
6.209.459
16.146,441
16,146,661
PrePared by Ehlers Ine. - Please review �II assumpftons. PAN�COMM•200246�PSTSIs
oa-a�?
EXFIIBIT C
Estimated Impact on Other Ta�ng Jurisdictions
IMPACT ON TAX BASE
Ramsey County
City of St. Paul
ISD No.625
2001/2002
Total Net
Tax Canacitv
419,554,880
181,113,311
181,113,981
360,188
360,188
360,188
Percent of CTC
to Entitv Total
0.0859%
Q.1989%
0.1989%
IMPACT ON TAX RATES
Ramsey Counry
City of St. Paul
ISD No.625
Other:
Total
2001/2002
Extension Rates
0.507640
0387230
� �:.�t
0.059030
1302590
Estimated Captured
Tax Capacity (CTC�
Uoon Comnletion
Percent
of Total
38.97%
29.73%
26.77%
4.53%
100.00%
CTC
360,188
360,188
360,188
360.188
Potential
Taxes
182,846
139,476
i25,594
21.262
469,177
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the 2001/Pay 2002 rate. The total net capacity for the entities listed above are based
on Pay 2002figures.
I�
oa - a��
BRUCE A. RASMUSSEN
DAVID G. HARSi'AD
BRUCE A. RASMUSSEN & ASSOCIATES, LTD_
ATfORNEYS AND COUNSELLORS AT LAW
eEwcassrsra�•rs:
LEE A. SANFORD - TRANSACIIONS
MICHELE R. SfREIR - LTI7GATION
OFCOUN4L
lAMES L. }�IlAND. lR.
2116 SECOND AVENUE SOUTH
MINNEAPOLLS, MINNFSOTA SSMM
612.874J071
FAX: 612.874.9793
March 26, 2002
Mayor Randy Kelly
Council Member Jerry Blakey
Council Member Chris Coleman
Council Member Pat Harris
Council Member Jay Benanav
Council Member Jim Reiter
Councii Member Dan Bostrom
Council Member Kathy Lantry
Tony Schertler, Interim Director, Dept. of Planning and Economic Development
City Hall
St. Paul, Minnesota 55102
Re: University and Dale Tu� Increment Financing District
Our File No. 5084.048
Dear Mayor Kelly and Members of the Ciry Council:
We represent the Disabled American Veterans Department of Minnesota,
Inc. ("DAV"), a non-profit corporation whose membership comprises 18,500 disabled
veterans throughout Minnesota. Each of the DAV's members was disabled in the line of
duty during time of war. We are contacting you to express the DAV's opposition to the
establishment of a tax increment financing district at the intersection of Dale and University
("Unidale TIF") and to the proposed condemnation and demolirion of the building Irnown
as the Unidale Mall.
The DAV operates a thrift store in the Unidale Mall in the southeastern
quadrant of the intersection of Universiry and Dale. The thrift store occupies over 17,000
square feet in the Unidale Mall. This store generates some $250,000 in annual revenue that
is used by the DAV to maintain several veterans' service programs throughout the state,
including the DAV Transportarion Network that last year delivered 27,400 veterans to VA
hospitals. In addition to providing funds far the DAV's programs, the thrift store serves
the local community by providing jobs and merchandise at low prices.
ti
BRUCE A. RASMUSSEN & ASSOCIATES, LTD.
March 26, 2002
Page 2
If the Unidale 'TIF is approved, the Unidale Mall will be demolished.
Successful relocation of the store is very unlikely for a variety of inter-related reasons. As
a result, demolition of the Unidale Mall will likely cause the permanent closing of the thrift
store and the termination of the veterans' service prograzns that it supports. The
possibility of permanent loss of the thrift store has led the DAV to e�plore possible legai
remedies to protect its veterans service programs.
Among other things, we are of the opinion that the proposed Unidale TIF
district would not comply with staCe law. We have prepared a detailed analysis, and have
attached it for your review.
For the reasons described in our memorandum, the DAV respectfully
requests that the Council reject the proposed University and Dale Tax Increment Financing
Plan. If you desire additional information, please contact either of the undersigned or
Philip Getts, Esq. at the same address.
Sincerely yours,
BRUCE A. SSEN SSOCIATES, LTD.
,/ ;
�
�� .
v
Bruce A. Rasmussen
BAR:Is
d a' �')
�oxnrmuM
TO: Mayor Randy Kelly
Council Member Jerty Blakey
Council Member Chris Coleman
Council Member Pat Aarris
Council Member Jay Benanav
Council Member Jim Reiter
Council Member Dan Bostrom
Council Member Kathy Lantry
Tony Schertler, Interim Director, Dept. of Pluining and Economic
Development
FROM: Bruce A. Rasmussen, Esq. and Phillip Getts, Esq.
Disabled American Veterans Department of Minnesota, Inc.
RE: University and Dale Tax Increment Financing District
DATE: Mazch 26, 2002
The DAV opposes the Unidale TIF in the first instance because this project
threatens its revenue stream. The DAV also opposes the Unidale TIF because the proposed
TIF district and the exercise of the City's power of eminent domain violate Minnesota law in
several important respects.
As you know, the use of tu� increment financing is closely regulated by statute.
Minnesota Statutes (2001) §§469.174 - 469.179 impose many complex and detailed
requirements upon the use of the TIF process. The proposed Tas Increment Financing Plan
for University and Dale fails to satisfy these requirements in three important respects:
1. An insufficient number of buildings in the proposed TIF district are
"structurally substandard;"
2. The Unidale TIF does not satisfy the requirements for non-contiguous
TIF districts; and
3. The inclusion of two lots on the north side of University Avenue appears
to be a sham intended to circumvent the statutory requirements.
Each of these objections will be reviewed below. The informarion about the nature of the TIF
district is taken from "Report of Procedures Used and Results Obtained for Determining Tas
.
Mayor Kelley
Council Members
March 26, 2002
Page No. 2
� a _
Increment Financing District Elegebility [sic] for Proposed `Global Village' Tas Increment
Distdct," dated December 4, 2001 and prepared by The I.eonard Parker Architects' (hereafter
°Pazker Report"), and "Tax Increment Financing Plan" for the "University and Dale Tax
Increment Financing Disirict," prepared by Briggs & Morgan ("Unidale Tff+ Plan;" trris report
is undated).
1. The Unidale TIF' Is Unlawful Because Fewer Than �fty Percent (50%)
of the Structures in the Proposed TIF District Are "Structurally Substandard." A
"redevelopment TIF districY' can only be established where "more than 50 percent of the
buildings" in the district are "structurally substandazd to a degree requiring substantiai
renovauon or clearance." Minn. Stat. (2001) §469.174 Subd. 10(a)(1) (emphasis added). The
Parker Report identifies three buildings in the proposed district: the Wendy's restaurant, the
Unidale Mall, and the auto repair garage on the north side of University. Parker Report, p.
1. The Parker Report concedes that the Wendy's restaurant "was found to not meet the
criteria for structurally substandard status." Id. Thus, if either of the other two buildings fails
to satisfy the statutory definition of "structurally substandard," the TIF district is unlawful.
The information contained in the Parker Report demonstrates that neither of the other two
buildings satisfies the statutory test.
The TIF statute defines "structurally substandard" to mean "containing defects
in structural elements or a combination of deficiencies in essential utilities and faciliries, light
and ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors, which defects or deficiencies ue of su�cient total significance
to justify substanrial renovation or clearance." Minn. Stat. (2001) §469.174 Subd. 10(B).
This definirion of "structurally substandard" contains an important exception:
A building is not structurally substandard if it is in compliance with the building
code applicable to new buildings or could be modified to satisfy the building
code at a cost of less than 15 percent of the cost of constructing a new structtue
of the same square footage and type on the site.
i Leonard Pazker Architects were hired by the City of St. Paul to prepare the Parker
Report. Leonazd Parker Architects are also the architects for the Pan Asian
Development Group, which is a rather obvious conflict of interest.
.
Mayor Kelley
Council Members
March 26, 2002
Page No. 3
�
Minn. Stat. (2001) §469.174 Subd. 10(c). The Parker Report relies on this exception to
support its conclusion that the buildings in the Unidale TIF district are structurally
substandard. In fact, the Pazker Report on its face demonstrates that the buildings in the
proposed TIF district do not sarisfy the statutory test.
The Parker Report estimates that the cost of rebuilding the Unidale Mall is
$5,621,344. Pazker Report, p. 5. The Report identifies four repairs necessary to cure "code-
related deficiencies:" re-roofmg, wall insulation, fire fighung systems, and replacement of
ceiling tiles. These four repairs have a total estimated cost of $888,893, or 16% of the
esrimated replacement cost. Parker Report, p. 5. Thus, the aggregate cost of all of the repairs
suggested in the Parker Report barely exceeds the statutory threshold of 15% of the
replacement cost. More importantly, two of the suggested repairs - wall insulation and
replacement of ceiling tiles - do not involve structural repairs. The Minnesota Court of
Appeals recently held that non-structural repairs could not be considered in deternuning
whether a building satisfied the statutory test of "structurally substandard." Walser Auto
Sales, Inc. v. City of Richfield, 635 N.W.2d 391, 403 (Minn. App. 2001).
The holding in the Walser case dooms the Unidale TIF because the cost of
renovating the Unidale Mall does not meet the statuto,ry threshold. Accarding to the rule
announced in Walser, the replacement of ceiling tiles and insulation of the walls cannot be
considered in determining whether the Unidale Mall is structurally substandard. When the
cost of these two repairs is excluded, the total cost of eligible repairs drops to $698,875, or
12.4% of total reconstruction cost, an amount well below the statutory threshold of 15%.
Even if only one of these items were deleted, the total cost of eligible repairs remains less than
the statutory minimum.
The Parker Report does not state why the roof on the Unidale Mall must be
replaced. Parker Report, p. 6. Further investigation is required to suppart any finding that
the roof of this building is "structurally substandard." Leaks in a flat roof, unless they
threatened the roof's structural integriry, do not constitute "structural defects" because the
leaks could be repaired without replacing the entire roof. If replacement of the roof is
necessary only to satisfy the energy conservarian requirements of the building code, the
holding in the Walser case precludes the consideration of these costs because such costs do not
concern the structure of the building.
The building on the north side of University Avenue may likewise fail to meet
the statutory test. According to the Parker Report, the total estimated reconstruction cost for
trus building is $542,280. Pazker Report, p. 5. Two of the suggested repairs, roof insulation
Mayor Kelley
Council Members
March 26, 2002
Page No. 4
D�-
a��
and remodeling of the toilet, cannot be considered in applying the statutory test. When these
two items are eliminated, the cast of the remaining repair - replacement of roof shingles -
constitutes 15.2% of the estimated replacement cost. Parker Report, p. 6. As with the roof
on the Unidale Mall, the Parker Report does not state any reason for replacing the shingles
on ttus building. If this cost is eliminated, the building on the north side of University also
fails to meet the statutory test of "structurally substandard."
The Unidale Mall and the Wendy's restaurant are not structurally substandard
within the meaning of the TIF statute. Even assuming that the other building in the proposed
TIF redevelopment district satisfies the statutory defurition of "structurally substandard," the
Unidale TIF is unlawful because two of the three buildings - fewer than fifty percent of the
total - are not "structurally substandard." Therefore, the Council may not lawfully fmd that
"more than 50 percent of the buildings [in the TIF] ... aze structurally substandard" as
required by the TIF statute. Minn. Stat. (2001) §469.174 Subd. 10(a)(1). The City Council
should not approve a TIF district where, as here, the report of the City's own consultant
demonstrates that proposed district violates the TIF statute.
2. The Unidale 1'IF Does Not Satisfy the Requirements for Non-contiguous
TIF Districts. The Unidale TIF comprises two pazcels on the north side of University
Avenue (545-555 Universiry Avenue) and two parcels on the south side (Wendy's and the
Unidale Mall). The two groups of parcels are divided by University Avenue, which is both
a state riunk highway and a Federal highway. A large median strip divides eastbound and
westbound traffic lanes on University Avenue. Thus, the two groups of parcels are not
contiguous. This fact also renders the Unidale TIF unlawful.
The TIF statute states that "For [TIF] district consisting of two or more
nonconuguous azeas, each area must qualify as a redevelopment district under paragraph (a)
to be included in the district, and the entire azea of the district must satisfy paragraph (a)."
Minn. Stat. (2001) §469.174 Subd. 10(fl. This provision requires that each of the rivo
noncontiguous areas in the Unidale TIF contain the required percentage of "structuraily
substandard" buildings in order to qualify as a redevelopment TIF. The Parker Report
demonstrates that the azea on the south side of University Avenue does not meet this
requirement.
As noted above, the Parker Report concedes that the structw containing the
Wendy's restaurant is not "structurally substandard." Parker Report, p. 1. Even if the
Unidale Mail were to satisfy the statutory definition, only 50% of the buildings in the area
south of Universiry Avenue would satisfy the statutory test. The TIF statute expressly requires
,
��-"��
Mayor Kelley
Councit Members
March 26, 2002
Page No_ 5
that "more than SO percent of the buildings" in a redevelopment district must be structurally
substandard. Minn. Stat. (2001) §469.174 Subd. 10(a)(emphasis added). The area south of
University Avenue therefore does not quatify as a TIF redevelopment district_ Because the
two areas in the Unidale TIF are non-contiguous, the southem parcel must meet the statutory
test independendy of the status of the building on the parcel across University Avenue. The
Parker Report on its face demonstrates that the southem pazcel does not qualify as a TIF
redevelopment district, and this land must be excluded from any TIF plan. Appzoval of the
Unidale TIF without deleting the southerly parcel would violate the TIF statute.
3. The Inclusion of Two Parcels on the North Side of University Avenue
Appears to Be a Sham Intended to Circumvent the Statutory Requirements. The fact
that the parcel on the south side of University Avenue does not, by itself, satisfy the TIF
statute may explain why the two parcels on the north side of University were included in the
proposed TIF district. According. to the Unidale TIF plan prepared by Briggs & Morgan, the
HRA presenfly has no plans to develop these lots. The report notes that "With completion of
the development of the southeast comer, it is anticipated that there will be enhanced market
support to stimulate the redevelopment of the building located at 545-555 University Avenue."
Unidale TIF Plan, p. 3. A glance at a city map shows that the parcel containing the Unidale
Mall and the Wendy's restaurant is not direcdy contiguous with the two parcels on the other
side of University Avenue and, more importantly, that the northem parcels have no
relationship or connection with the much larger parcel containing the Mall and Wendy's. Any
connecrion between the northern and southern parcels is made even more tenuous by the large
median strip that divides the traffic lanes on University Avenue. According to the Unidale
TIF Plan the southern parcel is the actual focus of redevelopment efforts, and the two
northern parcels may never be redeveloped. Further, among the thousands of documents that
make up the PED files regarding the proposed project, there was not a sentence mentioning
any desire to spur development on the two parcels on the north side of Universiry Avenue.
There is, however, extensive discussion of the use of tax increment fmancing for the Unidale
Mall site dating back years before the Parker Report was prepared.
These facts lead inevitably to the conclusion that the two parcels on the north
side of University Avenue have been included in xhe proposed TIF district for the exclusive
purpose of obtaining a sufficient number of appazenfly substandard buildings to satisfy the
statute. The council should not approve such an obvious attempt to evade state law.
ATTACHMENTS: Parker Report
� h -.-.
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,L) L�.GLJJL£Q. �hZE'LLL�GZYL ' V £L£'LQ.YL �
DEPARTMENT OF MINNESOTA, INC.
STATEYETERIWS SERVICE BU1LDlNG. Si: PA114 �NNESOTA 55155
(45t} 237-t212. FAX(&St)29'�-m�s
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1
DISABLED AMERICAN VETERANS
THRI�T STORE
FACT SHEET
Owner: I3isabled Ameri�an Veferans Department of Minaesota, 7uc.
#�ttt�ding better lives for sil our nation's disabled veterans andtheir families.
• 3.8,500 menlbers
* 33 Chapters loca�d throughout Minnesota
Anchor Tenant of Uaidale Mall siace 1986.
�` Serves 147,000 res�denRs of fhe Frogtown and S�mit Univeisity neighborhoods annually.
• Emptoys 40 empioyees with annual payrolt in excess of $1,000,000.
ThrifE SMre revennes fuqd the se�vitce programs of tlte Disabled Ameriean Veteran.s.
* DAV Ttanspox[ation Netwotk �ansporfs Minnesota vet�rans to VA ht�spifaI
* 27,400 veterans sunually
* 95,961 volwiteet driving hours
* 1�65,000 miies driven
*. Installed and mainfains sa#ellite telewisiou receivers in all five Minnesota Vetc�ans Homes�
* AlI 450 rooms bave a television set and staud r�iYh sateUite service
* $300,000 instailation cosfs
' $28,000 annual subscriphon cost
* RepresenYS veterans makiag claims agaiast the Veteias�s Adu►inistration resniting in
annuai benefits of $36,000,000_
� Provides 4,000 clotbing vauchers to veterans each year
The DLSabled Americ�a Veteians Thrift Store reeeaues are essemaal {ror the continuxtion of these
and other vete�ans progams-
r
>� :
� �'°I�,'P;,t
. :.'�vl�'�� e�..
1
2
3
4
Presented By
Referred To
Council File # �.Z — p0 1
Resolution #
Green
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
RESOLUTION NO.
# ����.zy
Date
5 RESOLUTION APP OVING
6 AMENDMENT OF TAX INCREME T FINANCING PLAN FOR
7 THE SAINT PAUL NEIGHBO OOD REDEVELOPMENT
s TAX INCREMENT FIN CING DISTRICT NO. lA
9 (SCATTERED SITE) THE E5TABLISHIVIENT
io OF THE UNIVERSITY DAI.E TAX INCREMENT
i t FINANCING DISTRI T AND THE ADOPTION OF A
12 TAX INCREMENT INANCING PLAN THEREFOR
13 WHEREAS, the City Council of the ity of Saint Pau) (the "City") has heretofore, at the request of the
14 Housing and Redevelopment Authority the City of Saint Paul, Minnesota (the "Authority"), pursuant to a
15 resolution adopted on March 17, 1987 e"Redevelopment Plan Resolution"), approved a Redevelopment
16 Plan ("Neighborhood Redevelopmen lan") for the Saint Paul Neighborhood Redevelopment Project (the
17 "Redevelopment Project Area"); an
1 s WHEREAS, in order to
19 Authority, with the approval
2o Financing District No. lA (
21 Financing Plantherefore ( e
f ance public redevelopment activities in the Redevelopment Project Area, the
o the City established within the Redevelopment Project Area, Tax Increment
attered Site), (the "Scattered Site TIF District"), and adopted a Tax Increment
"Scattered Site TIF Plan"); and
22 WIIEREAS, the Authority desires to amend the Scattered Site TIF Plan to delete certain parcels from
23 the Scattered Site TIF Aistrict as set forth in a docuxnent presented to the City Council on this date entitled
24 °Amendment of Tas Increment Financing Plan for the Saint Paul Neighborhood Redevelopment Tax
25 Increment Financing District No. lA (Scattered Site)" (the "Scattered Site Amendment"); and
;
26 WIIEREAS, new private inveshnent that fully realizes the potential of the Redevelopment Project
27 Area, and meets the City's goals and objectives is unlikely to occur unless fiuther public action is undertaken
28 to continue preparing the Redevelopment Project Area for redevelopment and to continue guiding its
29 transformation; and
30 WHEREAS, the Authority has provided an opportunity to the Ramsey County Boazd of
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31 Commissioners and the School Boazd of Independent School District Number 625 to meet with the Authority
32 and has presented them with copies of the Scattered Site Amendment; and
33
34
35
36
37
38
39
WHEREAS, the relevant provisions of state law require that the goveming body of the City approve
any modification or amendment to the Scattered Site TIF Plan following a public he � thereon.
VJHEREAS, the Authority has also asked the City Council to approve the cr on, within the
Redevelopment Project Area, of a tas increment financing district as a redevelop nt taY increment financing
dishict under Mi�esota Statutes, Section 469174, Subdivision 10 (the "Univ ity and Da1e Tas Increment
Disirict"), and the adoption of a Tax Increment Financing Plan therefor, all suant to and in accordance
with Minnesota Statutes, Secfion 469.174 through 469.179 (the "Tax Incr ent Act").
4o WHEREAS, the Authority has performed all actions required b aw to be performed prior to the
al creation of the University and Dale T� Increment District and ado on of a Tas Increment Plan therefor,
42 including, but not limited to, notification of the Ramsey County mmissioner representing the azea of the
43 County in which the University and Dale Tas Increment Financ' g District is located, and delivering a copy
44 of the T� Increment Financing Plan to Ramsey County and I dependent School District Nuxnber 625, which
45 have taxing jurisdiction over the property to be included in e University and Da1e Tax Increment District.
46 NOW, THEREFORE, BE IT RESOLVED, by th ity Council of the City of Saint Paul, Minnesota, as
a7 follows:
48 Section 1
49 1.01
Approval of Amendment to the
The City Council hereby
50 upon the data and other information
51 information auailable to the Council
52 within the meaning of Minnesota St�
53 prior resolutions of the City Council
54 ratified and confirmed. i
55 1.02 The City Council
56 hereby finds that the land
57 not be made available for
58 reasonably be expected to
59 without the use of taY inct
Site Tax Increment District.
t, upon the evidence presented at the public hearing and
stated in the Scattered Site Amendment, and other
that the Scattered Site TIF District is a"redevelopment district"
tion 469.174, subdivision 10. The findings set forth in the
; the establishment of the Scattered Site TIF District aze hereby
;J�y reaffirms its findings in the Redevelopment Plan Resolution and
ftedevelopment Project Area and the Scattered Site TIF District would
ient or development, nor would the provision of new development
ly through private investrnent within the reasonably foreseeable future
the other public assistance sought and to be provided.
60 1.03 T'he City C�ncil hereby reaffirms its findings in the Redevelopment Plan Resolution and
61 hereby fmds that the prop,�sed development and redevelopment within the Redevelopment Project Area has
62 not occurred nor would q'ccur solely through private investment within the reasonably foreseeable future
63 without significant public fvancial assistance, that usual sources of public revenue are not adequate or
64 available to provide the required level of such public assistance and that, therefore, the use of t� increment
65 financing is necessary,to the accomplishment of the development and redevelopment of the Redevelopment
66 Project Area, in accordance with the Redevelopment Plan.
67 1.04 The City Council hereby finds that the Scattered Site Amendment, will afford maximum
68 opportututy, consistent with the sound needs of the community as a whole for the provision of new mixed use
69 development and other development or redevelopment of the Redevelopment Project Area by private
7o enterprise.
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71 1.05 The City Council hereby fmds that the Scattered Site Amendment conforms to the Saint Paul
72 Comprehensive Plan and the general plan for the development of the community as a whole.
73 1.06 The City Council approves the Scattered Site Amendment as submitted and the Authority is
74 directed to file copies of the Scattered Site Amendment with the Minnesota Department of Revenue and the
�5 Ramsey County Department of Tasation and Records Management.
76
77
Section 2. Findings for the Creation of t1�e University and Dale TaY Increment
Adoption of a Tax Increment Financing Plan therefor.
m
78 2.01 The City Council hereby finds that the creation of the University and e Tas Increment
79 Financing District and adoption of the Taac Increment Pian therefor, aze intended , in the judgment of the
80 City Council, its effect will be, to carry out the objectives of the Redevelopment an and to create an impetus
81 for the redevelopment of blighted structures and the construction of mixed use mmercial, cultural and
sz housing development , and will othenvise promote certain public purposes accomplish certain objectives
83 as specified in the Redevelopment Plan and University and Dale T� Incre ent Financing Plan.
84
85
86
2.02 The City Council hereby fmds that the University and
qualifies as a"redevelopment district" within the meaning of the
reasons:
T� Increment Financing District
ment Act for the following
87 The District is, pursuant to Minnesota Statutes, �e.btion 469.174, Subdivision 10(a)(1),
88 a"redevelopment district" because it consists of a pro , t or portions of a project within which
89 the following conditions, reasonably distributed thr hout the District, exist: (1) parcels
90 consisting of at least 70% of the azea of the Distr' Z�'are occupied by buildings, streets, utilities,
91 or other improvements; and (2) more than 50% f the buildings ue "structurally substandard"
92 (within the meaning of Minnesota Statutes, S'tion 469.174, Subdivision 10(b)) to a degree
93 requiring substantial renovation or cleazan . f The District consists of 4 parcels, and all 4 are
94 "occupied" within the meaning of the T i{ncrement Act. There are 3 buildings in the district,
95 2 of which (constituting 66.66%) are s cturally substandard to a degree requiring renovation
96 or cleazance. The buildings are shuc ally substandard because they contain defects in
97 stnxctural elements or a comb'v
9s and venfilation, fire protection
99 partitions, or similar factors, w
l00 justify substantial renovation
lol than 50% of the buildings w,a�
ioz and not in compliance �
103 compliance at a cost of
io4 size and type on the s��
xio of deficiencies in essential utiliries and facilities, light
i uding adequate egress, layout and condition of interior
h defects or deficiencies are of sufficient total significance to
clearance, specifically defects in structural elements. More
i the District have been found to be structurally substandard
icable building codes, and could not be brought into such
than 15% of the cost of conshucting new shuctures of the same
sites, respectively.
105 The supporting facfs for these determinations aze on file with the staff of the Authority and include but
lob are not limited to the report dated December 4, 2�01 prepazed by The Leonazd Pazker Architects.
107 2.03 The City Council hereby makes the following fmdings:
l08 (a) The City Council fiudier fmds that the proposed development, in the opinion of the
109 City Council, would not occur solely through private investment within the reasonably foreseeable
110 future and, therefore, the use of t� increment fmancing is deemed necessary. The specific basis for
I11 such fmding being:
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112
113
114
The costs of the development, including the costs of acquisition and cleazance of the Od � a�7
development site, exceed the amounts that a private developer could obtain through
private finaucing.
115 (b) The City Council further finds that the University and Dale Tas Increment Financing
116 Plan conforms to The general plan far the development or redevelopment of the City as a whole. The
117 specific basis for such finding being:
118 The University and Dale Tas Increment Financing Plan will generally
119 serve to implement policies adopted in the City's comprehensive plan.
120 development will result in a higher intensity, xnised use development'.
]21 has been identified as a central transit corridor. /
.�.
azea that
122 (c) The City Council fiurther finds that the University and D Tax Increment Financing
123 Plan will afford maximum opportunity consistent with the sound nee of the City as a whole for the
124 development of the University and Dale Tax Increment District by vate enterprise. The specific
125 basis for such fmding being:
126
127
128
129
130
131
132
133
134
The proposed development to occur within the Unive ' and Da1e Tax Increment
District is mixed use commercial, cultural and hou '. The development will result in
a higher intensity mixed use development and '' crease the tasable market
valuation of the City and provide needed co r al, cultural and housing facilities in
a central transit area.
(d) Far purposes of compliance with i esota Statutes, Section 469.175, Subdivision
3(2), the City Council hereby fmds that the in ea ed mazket value of the property to be developed
within the University and Dale Taac Increme strict that could reasonably be expected to occur
without the use of tax increment financing 's , which is less than the market value estimated to
135 result from the proposed development
136 projected tax increments for the maYir
137 (i.e., $6,209,459). In making these fi
13s underdeveloped for many years and
139 Thus, the use of tax increment fi cj�
14o and the County, and the tax incre g�it
la1 therefrom.
142 2.04 The provisions
143 the University and Da1e Tas I�
d44 Section 3. Creation
las therefor.
)00,000) after subtracting the present value of the
on of the University and Dale Tax Increment District
iiylgs, the City Council has noted that the property has been
�iild likely remain so if tax increment financing is not available.
�g will be a positive net gain to the City, the School District,
assistance does not exceed the benefit which will be derived
2 are hereby incorporated by reference into and made a part of
Financing Plan.
and Da1e Tax Increment District and the Tax Increment Financing Plan
146 3.01 The creationpf University and Dale Tax Increment District is hereby approved and the T�
147 Increment Financing Planthereforis hereby adopted.
148 3.02 The stafF of the City, the staff of the Authority and the City's and Authority's advisors and
149 legal counsel aze authorized and directed to proceed with the implementation of the University and Dale Tas
150 Increment District and the Tax Increment Financing Plan therefore and for this purQose to negotiate, draft,
151 prepare and present to the Boazd of Commissioners of the Authority for its consideration a11 further plans,
1386610v1 4
152 resolutions, docuxnents and contracts necessary for tYus purpose.
153
,
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S �.bSt - ,-��.,� � -
ORIGI�VA�
�pr,� 3 �oo�.
OF SAII,� PAUL, MINNESOTA
Presented By
Referred To
RESOLUTION NO.
Council File # a a- o�g �
Resolution #
Green Sheet # �u3a�
Committee: Ddte
RESOLUTION APPROVING
AMENDMENT OF TAX INCREMENT FINANCING PLAN FOR
TFIE SAINT PAUL NEIGHBORHOOD REDEVELOPMENT
8 TAX INCREMENT FINANCING DISTRICT NO. lA
9 (SCATTERED SITE) AND THE ESTABLISHMENT
l0 OF THE UNIVERSITY AND DALE TAX INCREMENT
11
12
FINANCING DISTRICT AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN THEREFOR
�
13 WHEREAS, the City Council of the City of Saint Paul (the "City") has heretofore, at the request of the
14 Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authority"), pursuant to a
15 resolution adopted on March 17, 1987 (the "Redevelopment Plan Resolution"), approved a Redevelopment
16 Plan ("Neighborhood Redevelopment Plan") for the Saint Paul Neighborhood Redevelopment Project (the
i7 "Redevelopment Project Area"); and
18 WHEREAS, in order to finance public redevelopment activities in the Redevelopment Project Area, the
19 Authority, with the approval of the City established within the Redevelopment Project Area, Taat Increment
20 Financing District No. lA (Scattered Site), (the "Scattered Site TIF DistricY'), and adopted a Tax Increment
21 Financing Plan therefore (the "Scattered Site TIF Plan"); and
22 WIIEREAS, the Authority desires to amend the Scattered Site TIF Plan to delete certain pazcels from
23 the Scattered Site TIF District as set forth in a document presented to the City Council on this date enritled
24 "Amendment of Tas Increment Financing Plan for the Saint Paul Neighborhood Redevelopment Taac
25 Increment Financing District No. lA (Scattered Site)" (the "Scattered Site Amendment"); and
26 WHEREAS, new private investment that fully realizes the potential of the Redevelopment Project
27 Area, and meets the City's goals and objectives is unlikely to occur unless fiuther public action is undertaken
28 to continue preparing the Redevelopment Project Area for redevelopment and to continue guiding its
29 transformation; and
3o WHEREAS, the Authority has provided an opporhmity to the Ramsey County Board of
31 Commissioners and the School Board of Independent School District Number 625 to meet with the Authority
32 and has presented them with copies of the Scattered Site Amendment; and
1386610v2
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33 t relevant provisions of state law require that the goveming body of the City approve
34 any modificafion or amendment to the Scattered Site TIF Plan following a public hearing thereon.
35 WHEREAS, the Authority has also asked the City Council to approve the creation, within the
36 Redevelopment Project Area, of a ta7c increment financing district as a redevelopment taY increment financing
37 dishict under Minuesota Statutes, Section 469.174, Subdivision 10 (the "University and Dale Ta�c Increment
38 Dishict"), and the adoption of a Tax Increment Financing Plan therefor, all pursuant to and in accordance
39 with Minnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act").
40 WHEREAS, the Authority has performed all actions required by law to be performed prior to the
41 crearion of the University and Da1e Tax Increment District and adoption of a Tas Increment Plan therefor,
a2 including, but not limited to, notification of the Ramsey County Commissioner representing the area of the
43 County in wluch the UniversiTy and Dale Ta�c Increment Financing District is located, and delivering a copy
44 of the Taac Increment Financing Plan to Ramsey County and Independent School District Number 625, which
45 have t�ing jurisdicrion over the properry to be included in the University and Dale Taac Increment District.
46 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saint Paul, Minnesota, as
a7 follows:
48 Section 1. Approval of Amendment to the Scattered Site Tax Increment District.
49 1.01 The City Council hereby ratifies and confums the finding set forth in the prior resolutions of
5o the City Council approving the establishment of the Scattered Site TIF District, that the Scattered Site TTF
51 District is a"redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, subdivision
52 10.
53 1.02 The City Council hereby reaffirms its findings in the Redevelopment Plan Resolution and
54 hereby finds that the land within the Redevelopment Froject Area and the Scattered Site TIF District would
55 not be made auailable for redevelopment or development, nor would the provision of new development
56 reasonably be expected to occur solely through private investment within the reasonably foreseeable future
57 without the use of taac increment and the other public assistance sought and to be provided.
58 1.03 The City Council hereby reaffums its findings in the Redevelopment Plan Resolution and
59 hereby finds that the proposed development and redevelopment within the Redevelopment Project Area has
6o not occurred nor would occur solely through private investment within the reasonably foreseeable future
61 without significant public financial assistance, that usual sources of public revenue are not adequate or
62 available to provide the required level of such public assistance and that, therefore, the use of ta�c increment
63 financing is necessary to the accomplishment of the development and redevelopment of the Redevelopment
64 Project Area, in accordance with the Redevelopment Plan.
65 1.04 The City Council hereby finds that the Scattered Site Amendment, will afford masimum
66 opporhxnity, consistent with the sound needs of the community as a whole for the provision of new mixed use
67 development and other development or redevelopment of the Redevelopment Proj ect Area by private
68 enterprise.
69 1.05 The City Council hereby finds that the Scattered Site Amendment conforms to the Saint Paul
70 Comprehensive Plan and the general plan for the development of the community as a whole.
71 1.06 The City Council approves the Scattered Site Amendment as submitted and the Authority is
72 directed to file copies of the Scattered Site Amendment with the Minnesota Department of Revenue and the
73 Ramsey County Department of Tu�ation and Records Management.
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7a ection 2. i�gs for the Creation of the University and Dale Tax Increment Financing District and
75 Adoption of a TaY Increment Financing Plan therefor.
76 2.01 The City Council hereby finds that the creation of the University and Dale Taar Increment
�7 Financing District aud adoption of the T� Increment Plan therefor, aze intended and, in the judgment of the
78 City Council, its effect will be, to carry out the objecrives of the Redevelopment Plan and to create an impetus
79 for the redevelopment of blighted shuctures and the conshuction of mixed use commercial, cultural and
80 housing development, and will otherwise promote certain public purposes and accomplish certaiu objecrives
81 as specified in the Redevelopment Plan and University and Dale Tax Increment Financing Plan.
82 2.02 The City Council hereby finds that the University and Dale Tas Increment Financing District
83 qualifies as a"redevelopment district" within the meaning of the Tas Increment Act for the following
84 reasons:
ss The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(a)(1),
86 a"redevelopment district" because it consists of a project or portions of a project within which
s7 the following conditions, reasonably distributed throughout the District, exist: (1) pazcels
88 consisting of at least 70% of the area of the District are occupied by buildings, streets, utilities,
89 paved ar grauel parking lots, or similaz structures; and (2) more than 50% of the buildings are
90 "structurally substandard" (within the meaning of Minnesota Statutes, Section 469.174,
91 Subdivision 10(b)) to a degree requiring substantial renovation or clearance. The District
92 consists of 4 parcels, and a114 aze "occupied" within the meaning of the Ta:c Increment Act.
93 There are 3 buildings in the district, 2 of which (constituting 66.66%) are structurally
94 substandazd to a degree requiring substantial renovation or clearance. The buildings aze
95 structurally substandazd because they contain defects in structural elements or a combination
96 of deficiencies in essential utilities and facilities, light and ventilation, fire protection including
97 adequate egress, layout and condition of interior partitions, or similar factors, which defects or
98 deficiencies are of sufficient total significance to justify substantial renovation or clearance,
99 specifically defects in structural elements. More Yhan 50% of the buildings within the District
loo have been found to be structuraliy substandazd and not in compliance with applicable building
lol codes, and could not be brought into such compliance at a cost of less than 15% of the cost of
102 constructing new structures of the same size and type on the subject sites, respecrively.
103 The supporting facts for these detenninations are on file with the staff of the Authority and include but
104 are not limited to the (a) report dated December 4, 2001 prepared by The Leonazd Parker Architects, and
105 supplementary information related thereto, and (b) a Memorandum dated January 24, 2002 by the
106 Construction Administrator of the Depardnent of Plazuung and Economic Development.
107 2.03 The City Council hereby makes the following findings:
108 (a) The City Council further finds that the proposed development, in the opuuon of the
109 City Council, would not occur solely through private investment within the reasonably foreseeable
l lo future and, therefore, the use of taz increment financing is deemed necessary. The specific basis for
111 such finding being:
112 The costs of the development, including the costs of acquisition and clearance of the
113 development site, exceed the amounts that a private developer could obtain through
114 private financing.
115 (b) The City Council further finds that the University and Dale Tas Increment Financing
ll 6 Plan conforms to the general plan for the development or redevelopment of the City as a whole. The
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117 specific asi's r such finding being. O�-��
118 The University and Dale TaY Increment Financing Plan will generally compliment and
i 19 serve to implement policies adopted in the City's comprehensive plan. The
120 development will result in a higher intensiry, miYed use development in an azea that
121 has been identified as a central transit corridor.
122 (c) The City Council further finds that the University and Dale Tas Increment Financing
1z3 Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the
124 development of the University and Dale Tas Increment District by private entetprise. The specific
125 basis for such finding being:
126 The proposed development to occur within the University and Dale T� Increment
127 District is mixed use commercial, cultural and housing. The development will result in
128 a higher intensity mixed use development and wili increase the taacable market
129 valuation of the City and provide needed commercial, culturai and housing facilities in
130 a central transit azea.
131 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
132 3(2), the City Council hereby finds that the increased market value of the property to be developed
133 within the University and Dale Taa� Increment District that could reasonably be expected to occur
13a without the use of tas increment financing is $0, which is less than the market value estimated to
135 resuit from the proposed development (i.e., $25,000,000) after subtracting the present value of the
136 projected taac increments for the maximum duration of the University and Dale Taac Increment District
137 (i.e., $6,209,459). In making these findings, the City Council has noted that the property has been
138 underdeveloped for many years and would likely remain so if taac increment financing is not auailable.
139 Thus, the use of tas increment financing will be a positive net gain to the City, the School District,
140 and the County, and the tax increment assistance does not exceed the benefit which will be derived
141 therefrom.
142 2.04 The provisions of this Section 2 are hereby incorporated by reference into and made a part of
143 the University and Dale Tax Increment Financing Plan.
144 Section 3
145 therefor.
146
147
3.01
Creation of University and Dale Tax Increment District and the Ta1c Increment Financing Plan
The creation of University and Dale Tas Increment District is hereby approved and the Ta�c
Increment Financing Plan therefor is hereby adopted.
ias 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and
149 legal counsel aze authorized and directed to proceed with the implementation of the University and Dale Taac
15o Increment District and the Ta�c Increment Financing Plan therefore and for this purpose to negotiate, draft,
151 prepare and present to the Boazd of Commissioners of the Authority for its consideration all fixrther plans,
resolutions, documents and contracts necessary for this purpose.
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�R� �P,�,, ,� g
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oa.-�1
Requested by Department of:
Plannin4 & Economic DeveloDment
Adopted by Council: Date c"�O �.
�
Adoption Certified by Council Secretary
Approved by Financial Services
R�. `� a � ��
�
Approved by M
1386610v2 5
Approved by City Attorney
Approved by Mayor for Submission to Council
� ., � _ ,��
DEPARTMENT/OFF7CE/COUNCIL: DATE INITIATED GREEN SHEET No.:111324 ��Y
PED March 18, 2002 �
CONTACI' PERSON & PHONE: INmAi.mA'Ce nviT7nuuA1'E
Marie Franchett 266-6702 � I DEPAR s c�Ty co����
M[JST BE ON COUNCII. AGENDA BY (DATE) �I�` ? CI'fY ATTORNEY� _ CITY CLERK
3 FINANCIAL SERV DIR. FINANCIAI, SERV/ACCTG
April 3 � 2,0�2 gQ� 4 MAYOR (OR ASST.) _ CIVIL SERVICE COMIvIISSION
ROUTING
ORDER Mazie Franchett
TOTAL # OF SIGNATURE PAGES I_(CLIP ALL LOCATTONS FOR SIGNATURE)
acrioN �Q�s�n: Execution of signatures for submission of resolution to City Council regarding the
establishment of the University and Dale TIF District
RECOMMENDAI'[ONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRACLS MUST ANSWER THE FOLLOWING
QUESTIONS:
PLANNING COMIvIISSION 1. Has this person/fum ever worked under a contract for ihis depaztment?
CIB COMIvIITTEE Yes No
CIVIL SERVICE COhfMISSION 2. Has this person/fum ever been a ciTy employee?
Yes No
3. Does this person/fum possess a skill not norsnally possessed by any ciurent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTiJN11'Y (Who, Whay When, Where, W6y):
At the HRA meeting of February 27, 2002, the HRA directed staff to schedule a public hearing for Apri13, 2002
regazding the establishment of the University and Dale TIF District. The new TIF District needs to be established
prior to the execution of a Development Agreement for the Pan Asian Urban Village project.
ADVANI'AGES IF APPROVED:
Project will move forward.
DISADVANTAGES IF APPROVED:
NA
DISADVANI'AGES IF NOT APPROVED: �
Project will not move forwazd
TOTAL AMO�JN1' OF TRANSACTION: The proposed TIF plau does not commit any fiRA or CiTy funding however it does provide a budget for future funding
of the Pan Asian Urbap Pllage redevelopment project When [he TIF plan is fornarded to the [IRA for approval, any required budget amendmenGS will be
made at that time. Funding coromitmenfs for the project will not be made unfil the Developmeut Agreemeut is approved, which will most likely be on
April2�b, 2002.
COST/REVF.NUE BUDGETED:NA
FONDINGSOURCE: NA ACTIVITYNUMBER: NA
FdNANCIAL INFORNIATiON: (EXPLAl1V)
o �- �8'1
TAX INCREMENT FINANCING PLAN
for the establishxnent of
UNIVERSI'I'Y AND DALE TAX INCREMENT FINANCING DISTRICT
(a redevelopment district)
HOUSING AND REDEVELOPMENT AUTHORTTY OF 'I`HE
CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: , 2002
This document was drafted by:
BRIGGS AND MORGAN (NIMD)
Professional Association
2200 First National Bank Bldg.
St. Paul, MN 55101
(651) 223-6625
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR THE UNIVERSITY AND DALE TAX INCREMENT FINANCING DLSTRICT
Pa2e
Section Forwazd ..................................................................................................................1
Section Statutory Authority ................................................................................................ 1
Section 3. Statement of Objectives ......................................................................................... 1
Section 4. Redevelopment Plan Overview .............................................................................. 2
Section 5.
Section 6.
Secrion 7.
Section 8.
Section 9.
Section 10.
Section 11.
Parcels to be Included in Tax Increment Financing District .................................. 2
Parcels be Acquired ........................................................................................... 2
Development Activity in Taac Increment Financing District far which
Contracts have been Signed ................................................................................... 3
Other Specific Development Expected to Occur within Redevelopment
Area........................................................................................................................ 3
Estimated Cost of Proj ect; Talc Increment Financing Plan Budget ....................... 3
Estimated Amount of Bonded Indebtedness ......................................................__. 3
Sources ofRevenue ................................................................................................3
Secrion 12. Estimated Captured Tas Capacity and Esrimate of Ta�c Increment ....................... 4
Section 13. Type of Taac Increment Financing District ............................................................. 4
Section 14. Duration of Taz� Increment Financing District ....................................................... 4
Secrion 15. Estunated Ixnpact on Other Taxing Jurisdictions ................................................... 5
Section 16. Modification of Ta�c Increment Financing District and/or Tas Increment
Financing ....................................................................................................... 5
Section 17. Modificarions to Tax Increment Financing District ............................................... 5
Section 18.
Section 19.
Secrion 20.
Section 21.
Section 22.
Section 23.
Section 24.
Section 25.
Admnustrative Expenses ....................................................................................... 6
Limitation Increment ......................................................................................... 6
Use of Tax Increment ............................................................................................. 7
Notification of Prior Planned Improvements ......................................................... 8
Excess Increments .......................................................................................... 8
Requirements for Agreements with Developers .................................................... 9
Other Limitations on the Use of Tax Increment .................................................... 9
County Costs ..............................................................................................10
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Section 26. Assessment Agreements ...................................................................................... 10
Section 27. Admiuistrarion of the Taac Increment Financing District ..................................... 11
Section 28. Financial Reporting Requirements ...................................................................... 11
EXEIIBIT A— Tas Increment Financing Plan Budget
EXfIIBTT B- Projected Tas Increments
EXffiBTT C- Estimated Impact on Other Taxing Jurisdicrions
1299000v8 I1
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TAX INCREMENT FINANCING PLAN FOR
'I� UNIVERSITY AND DALE TAX INCREMENT FINANCING DISTRICT
Section 1. Forward. The Housing and Redevelopment Authority of the City of Saint
Pau1, Minnesota (the "HRA"), and its staff and consultants have prepazed the following
information for the establishment of a redevelopment tas increment financing district (the "Tas
Increment Financing District"). The Tas Increment Financing District is located within the Saint
Paul Neighbarhood Redevelopment Project Area heretofore established by the HI2A (the
"Redevelopment Project Area").
Section 2. Statutorv Authoritv. There exist areas within the City of Saint Paul (the
"City") where public involvement is necessary to cause development to occur. To tlus end, the
HRA has certain statutory powers pursuant to Miuuesota Statutes, Secfion 469.001 to 469.047
(the "HRA Law") and Minnesota Statutes, Section 469.174 tUrough 469.179 (the "Ta�c Increment
Financing AcY' or "TIF AcY'), to assist in financing public costs related to a redevelopment
project.
Section 3. Statement of Objecrives. The Tax Increment Financing District consasts of 4
pazcels of land and adj acent and intemal rights-of-way. The Tas Increment Financing Dish is
being created to facilitate the redevelopment of an existing commercial development by the
construction of new facilities for commercial, housing and cultural arts uses. The tas increment
financing plan is expected to achieve the obj ectives outlined in the Redevelopment Plan for the
Saint Paul Neighborhood Scattered Site Project Area. The following are some of the objectives
being facilitated by the Taac Increment Financing Plan.
A. Provide Affordable Housing for Saint Paul Residents.
The available housing for residents in the Project Area will be expanded when the 50 unit
seniar housing facility is constructed.
B. To Redevelon Underused Pronertv.
The Tas Increment Financing District currently contains property that has been
underutilized for many years. In order to protect existing investment and encourage new
development in the area, remove and prevent the emergence of blight and blighting influences,
substandard buildings need to be demolished and new facilifies need to be constructed.
C. Transit
The property is located at a key transit node for University Avenue which has been
identified as a central transit corridor. The project will result in a higher intensity, xnixed use
development that interrelates development with multi-model transportation options.
D. Exnand the Tax Base of the Citv of Saint Paul.
It is expected that the taYable market value of parcels in the Tas Increment Financing
District will increase by approxunately $25,000,000 as a result of the new development.
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The activifies contemplated in the Redevelopment Plan and this Tas Increment Financing
Plan do not preclude the undertakiug of other qualified development or redevelopment activities.
These activities are anricipated to occur over the life of the Tax Increment District and the
Redevelopment Project.
E. Emplovment.
The project will result in job creation of 300 jobs with 187 of net new jobs.
F. New Investment.
The project will leverage $30,000,000 in new investment for the Frogtown/Summit
University Avenue comxnunities.
Section 4. Redeveloroment Plan Overview.
Property to be Acquired — Any of or all of the property located within Tas
Increment Financing District or Redevelopment Project Area may be acquired by
the HRA.
2. Relocation - if necessary, complete relocafion services are available pursuant to
Minnesota Statutes, Chapter 117 and other relevant state and federal laws.
Upon approval of a developer's plan relating to a development and completion of
the necessary legal requirements, the HRA may sell or assist a developer with the
cost of acquisition of selected properties within TaY Increment Financing District
or Redevelopment Project Area, or may lease land or facilities to a developer.
Section 5. Parcels to be Included in Tax Increment Financing District . The following
parcels located in the City of Saint Paul, Ramsey County, Minnesota are to be included in the
Tax Increment Financing District:
PIN NO.
36-29-23-32-0005
36-29-2332-0006
36-29-23-23-0249
46-20-23-23-0114
FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO
BE INCLUDED IN THE TAX INCREMENT FINANCING DISTRICT CAN BE OBTAINED
FROM THE EXECUTIVE DIl2ECTOR OF THE HRA.
Section 6. Parcels to be Acquired. The F3RA may finance all or a part of the costs of
acquisition of all or a portion of the parcels identified in Section 5 of this Tax Increment
Financing Plan. The HRA may use its powers of eininent domain to acquire parcels which it
cannot obtain through private negotiarion.
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The HRA may acquire property by gift, dedication or direct purchase from willing sellers
in order to achiteve the obj ectives of the tas increment financing plan; and
Such acquisitions will be undertaken only when there is assurance of funding to finance
the acquisition and related costs.
Section 7. Development Activitv in TaY Increment Financine District for which
Contracts haue been Si¢ued. The following contracts have been or will be entered into by the
HRA and the persons named below:
No development agreements have been entered into at this time. However, the
HRA has entered into a Memorandum of Understanding with Pan Asian
Development Group, a Minnesota limited liability company (the "Developer")
with respect to the development of approximately Z00,000 gross square feet of
office and retail space (the "DevelopmenY') and the development of 49 units of
affordable senior housing (the "Housing Development"). The HRA intends to
enter into a Development Agreement with the Developer with respect to the
Development prior to the acquisition of any property in the Ta�c Increment District
by the HRA.
Section 8. Other Sroecific Develonment Exnected to Occur within Redevelopment Area.
The HRA anticipates that future development in the Ta�c Increment Financing District will
include the construction of the Asian Pacific Community Center (the "Cultural Center"). The
fIRA anticipates that the Aousing Development will be completed by December 31, 2004, and
that the Cultural Center will be completed by December 31, 2004, or as late as December 31,
2006. With the compietion of the development of the southeast corner, it is anticipated that there
will be enhanced market support to stimulate the redevelopment of the building located at 545-
555 University Avenue.
Section 9. Estimated Cost of Project: Ta�c Increment Financin� Plan BudQet. The HRA
has determined that it will be necessary to provide assistance far certain public costs of the
Development. To facilitate the Development within the Tas Increment Financing District, this
TaY Increment Financing Plan authorizes the use of taac increment fmancing to pay for a portion
of the cost of certain eligible expenses. The estimate of public costs and uses of funds associated
with Ta�c Increment Financing District is outlined on Eachibit A.
Estunated costs associated with Tax Increment Financing District are subj ect to change and may
be reallocated between line items by a resolution of the H12A. The cost of all activities to be
financed by the taY increment will not exceed, without formal modificafion, the budget for the
ta�c increments set forth on E�ibit A.
Section 10. Estnnated Amount of Bonded Indebtedness. The expenditures authorized by
this Tas Increment Financing Plan may be paid for either on a pay-as-you-go basis or paid from
the proceeds of taY increment revenue bonds or notes. The Authority anticipates issuing a tax
increment revenue note to provide pay as you go financing. If bonded indebtedness is issued by
the HRA or the City, the principal amount is estimated not to exceed $5,000,000.
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Section 11. Sources of Revenue The costs outlined in Secrion 9 above will be financed
from proceeds of the sale of revenue bonds or notes, or on a pay as you go basis through the
annual collection of tax increments. In addirion, costs will be financed by loans or grants made
by other public agencies for the Development, and private financing obtained by the Developer.
The total development cost of the Development and Housing Development, excluding the costs
of the anticipated future development of the Cultural Center, are estimated to be appro�mately
$37,000,000, of which approximately $24,000,000 aze construction costs.
Potential public sources of revenue to pay the costs of the Development are the Livable
Communities Grant Program of the Metropolitan Council, grants and loans from the City of St.
Paul's Staz Program, and tax increment revenue generated from the Authority's T� Increment
Financing District No. lA (Saint Paul Neighborhood Business Development Program) ("TIF
District No. lA") as set forth on E�chibit A attached hereto. The use of tas increment revenue
from TIF District No. lA shall be treated as a loan and shall not exceed the principal amount set
forth on Exhibit A, shall bear interest at a rate not to exceed 8% ar the maacimum rate permitted
under Section 469.178, subd. 21, and the ma�imuxn term shall be 25 yeazs. The Developer will
contribute equity or obtain private financing for the remaining costs of the Development.
Section 12. Estimated Captured Taac Capacitv and Estimate of Tas Increment. The most
recent taY capacity of Tax Increment Financing District is estimated to be $48,283 as of January
2, 20�1. The estimated captured tax capacity of Tax Increment Financing District at completion
is estunated to be $427,796.
The HRA elects to retain all of the captured tas capacity to finance the costs of Tas
Increment Financing District. The HRA elects the method of taac increment computation set
forth in Minnesota Statutes, Section 469.177, subd. 3(a).
Section 13. Twe of Tax Increment Financing District. Tax Increment Financing District
is a redevelopment district established, pursuant to Minnesota Statutes, Section 469.174, Subd.
10. Pazcels consisting of 70 percent of the area of the Ta�c Increment Financing District are
occupied by buildings, streets, utilities, paved or grauel parking lots, or other similar structures
and more than 50 percent of the buildings, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance.
The Tas Increment Financing District contains 4 parcels. 100% of the parcels aze
occupied. More than 50% of the buildiugs located in the Tas Increment Financing District are
structurally substandard. The reasons and supporting facts for these deteiviinations are on file
with the Executive D'uector of the HRA..
The HRA and the City have deteimined that the proposed development of the Taac
Increment Financing District would not reasonably be expected to occur solely through private
investxnent within the reasonably fareseeable future and that the increased market value of the
site that could reasonably be expected to occur without the use of tas increment financing would
be less than the increase in the market value estimated to result from the proposed development
after subtracting the present value of the projected ta�c increments for the maximum duration of
the Tas Increment Financing Dishict pemutted by the Taac Increment Financing Plan.
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Section 14. Duration of Tazc Increment Financing District. The duration of Taac
Increment Financing District will be 25 years from the receipt of the first ta�c increment. The
date of receipt of the first taY increment is expected to be the first half of 2004. Attached as
E�chibit B is the projected receipt of tas increments from the Tas Increment Financing District.
Section 15. Estimated Imnact on Other Tasine 7urisdicrions. If the construction within
the Tax Increment Financing District would not haue occurred without ta�c increment financing,
the impact is $0 to the other taYing jurisdictions. Notwithstauding the fact that the construction
would not have occurred without tax increment assistance, the estimated impact of TaY
Increment Financing Distdct if the "but for" test was not met is set forth on E�ibit C.
Secrion 16. Modificarion of TaY Increment Financina District and/or Tax Increment
Financin� Plan. No modifications to Tax Increment Financing District or the Taac Increment
Financing Plan have been made as of the date hereof.
Section 17. Modifications to Tas Increment Financine District.
In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any:
1. reduction or enlargement of the geographic area of the Tu� Increment Financing
District;
2. increase in amount of bonded indebtedness to be incurred, including a
detennination to capitalize interest on debt if that deternunation was not a part of
the original plan, or to increase or decrease the amount of interest on the debt to
be capitalized;
3. increase in the portion of the captured net ta�c capacity to be retained by the HRA;
4. increase in total estimated tax increment expenditures; or
5. designation of additional property to be acquired by the HI2A,
shall be approved upon notice and after the discussion, public hearing and fmdings required for
approval of the original Tax Inerement Financing Plan.
The geographic area of the Tax Increment Financing District may be reduced, but shall not be
enlazged after five years following the date of certificarion of the original net taar capacity by the
County Auditor. The requirements of this pazagraph do not apply if (1) the only modification is
elunina6on of parcel(s) from the Tax Increment Financing District, and (2)(A) the current net ta�c
capacity of the pazcel(s) elixninated from the Tas Increment Financing District equals or exceeds
the net tas capacity of those pazcel(s) in the Taac Increment Financing District's original net tas
capacity, or (B) the HI2A agrees that, notwithstanding Minnesota Statutes, Section 469. 177,
Subd. 1, the original net taY capacity will be reduced by no mare than the current net ta�c capacity
of the parcel(s) eliminated from the Taac Increment Financing Dishict.
The HRA must notify the County Auditor of any modification that reduces or enlazges the
geographic area of the Tax Increment Financing District or the Redevelopment Project Area.
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Modifications to Ta�c Increment Financing District in the form of a budget modification or an
expansion of the boundaries will be recorded in the Ta�c Increment Financing Pian.
Section 18. Adwuustrative Exnenses.
In accordance with Mumesota Statutes, Section 469.174, Subd. 14, and Minnesota
Statutes, Secrion 469.176, Subd. 3, administrative expenses means a11 expenditures of the HRA,
other than:
amounts paid for the purchase of land or amounts paid to contractors or others
providing materials and services, including architectural and engineering services,
directly connected with the physical development of the real property in the
district;
2. relocation benefits paid to or services provided for persons residing or businesses
located in the district; or
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 provided by bond
counsel, fiscal consultants, and plarnung or economic development consultants. Tas increment
may be used to pay any authorized and documented administrative expenses for the Ta�c
Increment Financing District up to but not to exceed 10 percent of the total ta�c increment
expenditures authorized by this Talc Increment Financing Plan or the total tas increment
expenditures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, taac increments may be used
to pay for the county's actual administrative expenses incurred in connection with the Tas
Increment Financing District. The county may require payment of those expenses by February
15 of the yeaz following the yeaz the expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall
deduct an amount equal to appro�mately .50 percent of any taac increment distributed to the
HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in
the state general fund to be appropriated to the State Auditor for the cost of financial reporting of
tax increment fmancing information and the cost of examining and auditing authorities' use of
tax increment financing.
Section 19. Limitation of Increment
Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no taac increment shall be
paid to the HRA for the Ta�c Increment Financing District after three (3) years from the date of
certification of the original net tax capacity value of the taYable property in the Tas Increment
Financing District by the County Auditar unless within the three (3) year period:
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(1) bonds have been issued pursuant to Minnesota Statutes, Section
469. 178, or in aid of a proj ect pursuant to any other law, except revenue bonds
issued pursuant to Minuesota Statutes, Sections 469.152 to 469.165, or
(2) the HIZA has acquired properly within the Taac Increment
Financing District, or
(3) the HRA has constructed or caused to be constructed public
improvements within the Tax Increment Financing District.
The tax increment pledged to the payment of bonds and interest thereon may be
dischazged and may be terminated if sufficient funds have been irrevocably deposited in the debt
service fund or other escrow account held in trust for all outstanding bonds to provide for the
payment of the bonds at maturity or redemption date.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6:
if after four years from the date of certification of the original net taac capacity of
the tax increment financing district pursuant to Minnesota Statutes, Section
469.177, no demolition, rehabilitation or renovation of property or other site
prepazation, including qualified improvement of a street adjacent to a parcel but
not installation of utility service including sewer or water systems, has been
commenced on a parcel located within a tax increment fmancing district by the
authority or by the owner of the pazcel in accordance with the tas increment
financing plan, no additional ta�c increment may be taken from that parcel and the
original net tas capacity of that parcel shall be excluded from the originai net taac
capacity of the taac increment fmancing district. If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or renovation or
other site preparation on that parcel including qualified improvement of a street
adjacent to that parcel, in accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the activity has commenced and
the county auditor shall certify the net tas capacity thereof as most recently
certified by the commissioner of revenue and add it to the original net taac capacity
of the tas increment financing district. The county auditor must enforce the
provisions of this subdivision. For purposes of this subdivision, qualified
nnprovements of a street are limited to (1) construction or opening of a new
street, (2) relocation of a street, and (3) substantial reconstruc6on or rebuilding of
an existing street.
Section 20. Use of TaY Increment
The HRA hereby deternunes that it will use 100 percent of the captured net tas capacity
of taYable property located in the Tax Increment Financing District for the following purposes:
i. to pay the principal of and interest on bonds used to finance a project;
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2. to finauce, or otherwise pay the capital and adininistrarion costs of the
Redevelopment Project Area pursuant to the Muuiesota Statutes, Sections
469.001 to 469.047;
3. to pay for project costs as idenrified in the budget;
4. to finance, or otherwise pay for other purposes as provided in Mivnesota Statutes,
Section 469.176, 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 otherwise pay premiums and other costs for insurance, credit
enhancement, or other security guaranteeing the payment when due of principal
and interest on taac increment bonds or bonds issued pursuant to the Taac
Increment Financing Plan or pursuant to Minnesota Statutes, Chapter 462C and
Minnesota Statutes, Sections 469.152 to 469.165, or both; and
7. to accumulate or maintain a reserve securing the payxnent when due of the
principal and interest on the taac increment bonds or bonds issued pursuant to
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469152 to
469.165, or both.
These revenues sha11 not be used to circumvent any levy limitations applicable to the
HRA nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Section 21. Notificafion of Prior Planned Improvements.
The HRA shall, after due and diligent search, accompany its request for certification to
the County Auditor ar its notice of the Tax Increment Financing District enlargement with a
listing of all properties within the Tax Increment Financing District or area of enlargement for
which building permits have been issued during the eighteen (18) months immediately preceding
approval of the Taa� Increment Financing Plan by the municipality pursuant to Minnesota
Statutes, Section 469.175, Subd. 3. The County Auditor shall increase the original value of the
Taac Increment Financing District by the value of improvements for which a building permit was
issued.
Section 22. Excess Taac Increments
Pursuant to Minnesota Statutes, Section 469176, Subd 2, in any year in which the tax
increment exceeds the amount necessary to pay the costs authorized by the Plan, including the
amount necessary to cancel any tas levy as provided in Minnesota Statutes, Section 475. 61,
Subd. 3, the HRA sha11 use the excess amount to do any of the following:
1. prepay any outstanding bonds;
2. discharge the pledge of taac increment therefor;
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3. pay into an escrow account dedicated to the payment of such bond; or
4. retum the excess to the County Auditor for redistribution to the respective 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 arder to finance addirional public costs in the Ta�c Increment Financing Disirict or
Redevelopment Project Area.
Section 23. Requirements for AQreements with Develoroers.
The FII2A will review any proposal for private development to determine its conformance
with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate
this effort, the following documents may be requested for review and approval: site plan,
construction, mechanical, and electrical system drawings, landscaping plan, grading and storm
drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the
City to demonstrate the conformance of the development with city pians and ordinances. The
HRA may also use the agreements to address other issues related to the development.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no more than 10 percent, by
acreage, of the property to be acquired in the Tax Increment Financing District as set forth in the
Tasc Increment Financing Plan shall at any time be owned by the HRA as a result of acquisition
with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469. 178, without the
HIZA having, prior to acquisition in excess of 10 percent of the acreage, concluded an agreement
far the development or redevelopment of the property acquired and which provides recourse for
the HRA should the development or redevelopment not be completed.
Section 24. Other Limitations on the Use of Ta7c Increment.
General Limitations. All revenue derived from tax increment shall be used in
accardance with the Ta�c Increment Financing Plan. The revenues shall be used to
finance, or otherwise pay the capital and administration costs of the
Redevelopment Project Area pursuant to the Minnesota Statutes, Sections
469.124 to 469.134;
These revenues shall not be used to circumvent existing levy limit law. No
revenues derived from tax increment shall be used for the acquisition,
construction, renovation, operation or maintenance of a building to be used
primarily and regularly for conducting the business of a municipality, county,
school district, or any other local unit of government or the state or federal
government, or for a commons area used as a public park, or a facility used for
social, recrearion or conference purposes. This provision shall not prohibit the
use of revenues derived from tas increments for the construction or renovation of
a parking structure.
2. Pooling Limitations. At least 75 percent of taac increments from the TaY
Increment Financing District must be expended on activities in the Tas Increment
Financing District or to pay bonds, to the extent that the proceeds of the bonds
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were used to finance acfivities within said district or to pay, or secure payment of,
debt service on credit enhanced bonds. Not more than 25 percent of said ta�c
increments may be expended, through a development fixnd or otherwise, on
activities outside of the TaY Increment Financing District except to pay, or secure
payment of, debt service on credit enhanced bonds. For purposes of applying this
restriction, all administrative expenses must be treated as if they were solely for
activities outside of the Tas Increment Financing District.
3. Five Year Limitation on Commitment of Taa� Increments. Ta�c increments derived
from the Tas Increment Financing District shall be deemed to have sarisfied the
75 percent test set forth in pazagraph (2) above only if the five year rule set forth
in Mivnesota Statutes, Section 469. 1763, Subd. 3, has been safisfied; and
beginnuig with the siacth year following certification of the Tax Increment
Financing District, 75 percent of said tax increments that remain after
expenditures pemutted 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 Tas Increment
District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d)
provided that the expenditures meet the following requirements:
(1) they are used exclusively to assist housing that meets the
requirexnents for a qualified low-income building as defined in Section 42 of the
Internal Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of housing as defined under
Section 42(c) of the Code less the amount of any credit allowed under Section 42
of the Code, and
(3) They are used to (i) acquire and prepare the site for housing, (ii)
acquire, conshuct or rehabilitate the housing or (iii) make public improvements
directly related to the housing.
Section 25. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la, the county board may require
the HRA to pay for all or part of the cost of county road 'unprovements if, the proposed
development to be assisted by ta�c increment will, in the judgxnent of the county, substantially
increase the use of county roads requixing conshucdon of road improvements or other road costs
and if the road improvements aze 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 will have little or no impact upon county roads. If the county elects to use increments to
unprove county roads, it must notify the HRA within thiriy days of receipt of this Plan.
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Section 26. Assessment Agreements.
Pursuant to Muuiesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an
agreement in recordable form with the developer of property within the Tas Increment Financing
District which establishes a m;nimum market value of the land and completed improvements for
the duration of the Ta�c Increment Financing District. The assessment agreement shall be
presented to the assessor who shall review the pians and specifications for the improvements
consiructed, review the market value previousiy assigned to the land upon which the
improvements are to be constructed and, so long as the minimum mazket value contained in the
assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the
assessor may certify the m;n;mum market value agreement.
Section 27. Admiuistration of the Ta�c Increment Financing District.
Admiuistrafion of the Tas Increment Financing District will be handled by the Executive
Director of the HRA.
Secfion 28. Financial Reporting Requirements.
The HRA will comply with all reporting requirements of Minnesota Statutes, Section
469.175, Subd. 5, 6 and 6a.
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TAX INCREMENT FINANCING PLAN BUDGET
Name of District:
TyQe of District:
Duration of District:
Pan Asian Village
Redevelopment
25 years
SOURCES OF FUNDS
AMOUNT
Tas Increment Revenue
Interest of Invested Funds
Bond Proceeds
Loan Proceeds
Real Estate Sales
Special Assessments
RenULease Revenue
Other Soucces (Specify):
Grant from Metropolitan CouncIl
City Star Loan
TIF Dishict No, lA/E3I2A other
Total Sources of Funds
USES OF FUNDS
Acquisirion, Demolition, Relocation
Site Improvements/Prepazation Costs
Installarion of Public Utilities
Pazldng Facilities
Streets and Sidewalks
Interest Reduction Payments
Bond Principal Payments
Bond Interest Payments
Loan Principal Payments
Loan/Note Imerest Payments
Administrarive Costs
Pollurion Abatement
Bond Issuance Costs
Capitalized Interest
Contingency
Other Uses (Specify):
Tas Credit Rental Housing
Bond Discount
Transfers Out (Specify):
Loan Repayment
Total Uses of Funds
` Excludes State Auditor deducrion
$18,746,306'
808,750
950,000
1,300,000
$21,805,056
AMOUNT
$6,700,000
1,100,000
980,000
7,000,000
1,874,630
1,500,000
850,426
1,800,000
$21,805,056
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CRY OF ST PWl-P/J1 A54N PROJEtt
h."�IBIT B
kt New Retlevelopiren� Datrict
Eon Rate 2.3100Y
As Vou Go Revenue Na[e �te ZSp %
As Yau Go Revenue No[e ISSUED ?11rot
a106p. CmNWtim Ra6o WA
imPS Fust Taz incremen[ 2005
: inaement it rererveE in 2002 a 2003. Sstricl wID be shortenetl
s of Ta�c Invement 26
FxtensionRate-SpteEtlumbanRa[e(USetlfortolal�esnot�inrmmenl7 0.6000� Pay2002
alDisPanhesPercent 025455 PaY2W2
FxtensionRate-AreaWiOe 1.564W Pay20�2
EnenspnRate-Frozen 1.30259 Pay2002
ErtensionRate-Curten[ 1.30259 Pay2002
iunt M inoertwntwili vary dxpending upon mxeket value, az 2tes, dass rdtes.
:WCAaf sUetlWe, arW i�eGOn on market vdlue. I�aYan on tax 2tes
E#emionfta�e-STATEE�RnTE O600W fa6250 e6,%0 EST
Ea4rsqnRale-tOTALCRYMTE 1.]0259 10'/S3� 1<O,C89 EST
�AREqWIOERATE 15869] 55.365 E8,80.5 EST
-STATEEORATE 0.80000 21]$00 f30.500 ESi
�TOTALCINRATE 1J0259 f62p]S 2Hd95 EST
f�,e'l5,000 0.0006900 Sd29 EST
TOTALTPXES l]].6G9
TOTAL TAXES PAIO REST
Rah TvCaoacM Taxes
�qREqWIDEMTE 15669] 9,566 16,939 EST
-StATEE�R?TE O6CW0 3],500 t2.500 EST
�TOTALCIfTMTE 10d159 2J,95d 06.dll EST
MaMetValue Taxes Totai ToWI
Developmen[ SQ.Ft Sq Fl Par Taxes Tax UO�aN Tax Market
Tvpe Um[s Units So.FtNnit Rate Vaiue
�� iW ]2.500 $39� 28�.635 164.2W 1 WY 200% ].250.(
suo 100 106.]50 $399 G33.fi69 21]500 200Y. t0.8]5.(
PrePared by Ehlers Inc. -Pleau review all asSUmpGons.
2005
GapN el]
oa -2r�
PAN�COMM-2002-4BiST.xls
}2NE3 CT' OF ST VN14 Pµ ASWI ]RQIECT Vaq t ol]
oa-ar�
Beginniig Perio�
0.0
0.0
0.0
00
0.0
OS
1.0
1.5
2.0
25
3.0
3.5
4.0
6.5
5.0
55
60
65
70
]5
80
85
90
9.5
100
105
11 0
11.5
120
125
130
13 5
140
16.5
150
15.5
18.0
16.5
no
1].5
180
18.5
190
195
20 0
20 5
210
21 5
22 0
22 5
23 0
23.5
26 0
26 5
250
1-AU9
1-Feb
i-AUg
1-Feb
1-AUg
1-Fe0
1-AUg
t-FeD
1-PLg
1-Feb
YAUg
1-Fe0
1-AUg
1-FeE
1-AUg
1-Fe�
1.AUg
i-Feb
1-AUg
t-Fe�
1-AU9
1-Feb
1-AUg
t-Feb
1-AUg
i-Feb
1-AUg
t�Feb
1-AUg
i-Feb
1-AU9
i�Feb
i-AUg
1-Feb
1-AUg
i-Fe0
t-AUg
1-FeD
hAUg
1-Feb
1-/w9
1�Fe0
bAUg
i-FeD
t-AUg
1-Feb
1-AUq
1-FeD
i-AUg
YFeh
1-AUg
i-Fe0
1-AU9
t-Feb
2003
2003
2004
2004
2005
zaas
2006
2006
200]
2a0]
2008
2008
2009
2009
2010
2010
2011
201t
2012
2012
2013
2013
20ta
-2014
2015
2015
20t8
2016
2017
201]
2018
2018
2019
2019
2020
2020
2021
2021
zo2z
2022
2023
2023
2024
2026
2025
2025
2026
2026
202]
202�
2028
2028
2029
2029
2030
Ann�31
Base Taz
44.151
6a.t51
C4.151
44.151
44.151
66J51
44.151
A6.151
6a.151
44.151
d4.151
44,151
44.151
44,151
Ca.151
66.151
44.151
44.151
44.151
d6151
66,151
41.151
44.151
da.151
d6.151
44.151
44,151
M16,151
44.151
46.151
44.151
4a.151
46,151
C6151
G4.151
64.151
44.151
44.151
44.151
G6,151
43.151
44.151
44.151
44.151
44,151
44.151
64.151
44.151
44151
4a.151
A4.151
46.151
64.15t
44,151
44,151
hqecl CapWretl SertmMnwl Sfate SemiPmual AtlirvNPOOGn9 $ertiMnual SpnY-Mnual Fntling Perietl
T� TaxCapadry Ta< Autl.Payment GrossTac PaNrent eontl Net PaymentOaG
404.339
404.339
613.5/9
413,5]9
423,032
623,032
432.]04
632,]04
662.600
442.600
452.]23
452.�23
d63,081
<63.081
4]3,8]8
6]3,6]8
48a,520
asa.sxo
695,812
495,812
506.960
506,960
518.91
518,5]1
53qaW
530,450
562,603
562.603
555,0.t]
555.�3]
%�.]58
56�.158
SBO,7l3
580.7]3
596,088
594,088
60�.]12
609.912
621.649
621.849
635,909
635,909
fi50.499
850,699
665,625
865,625
680,696
680,686
696.320
896.320
]12.305
0
0
0
0
3fi0188
360,188
369,428
369,428
3�8,881
3]8,881
388,553
388,553
398,449
398,949
a08,512
608,5]2
418930
418,930
429 52]
a29.521
d60,369
440,369
451 461
0.51?61
d62.809
482,8�9
4]4,420
474,320
d86299
488.299
498,452
498,452
510,886
510,886
523,601
523,BW
536,622
536,622
549,93]
5M19.93]
583,5G1
563 581
5]],498
ST/ 498
59i,l58
591 �58
169
1�
0
0
0
0
234.589
234.589
2a0,601
260,BO1
246.]64
2a6.76a
253,063
253,063
259.508
259.508
2fi6,101
266,101
2]2.8a]
2]2.8a]
2]9.]49
2]9.]49
286,010
286.810
296.036
294.036
901,425
301p25
308,98]
308.98]
316,724
316.T24
326,679
326,639
3]2.]3]
3J2.]3�
341.022
3a1.022
3a9,d99
349499
358.1]i
358.1]1
36],044
36],044
3]6,122
3]6,122
385,6p9
385,409
394,911
396,9H
606,633
606,633
414,S19
414,599
624,]56
a2a,]56
635,165
0
0
0
0
(1.173)
(1.7]3)
(1,203)
(1,203)
(123a)
(1294)
(1265)
(1,265)
(1298)
(1,298)
(1.331)
(1.�1)
(1.�)
(t.364)
(1,399)
ry.399)
(1,434)
(1.43d)
(1670)
(1 6l0)
(1.50])
(1.50])
(1.545)
(1.Sa51
(1.584)
(1.586)
(1,623)
(1,623)
(t.66aJ
(1.884)
(t,]OS)
(i,]OS)
(1.]4])
(1.]4])
(1.791)
(t.191)
(1.835)
(1.835)
(i,�t)
(1.881)
(1.92])
(1.92])
(t.WS)
(1,9]5)
0
0
0
0
233.616
233.416
239.60a
239.406
245.530
2a5,530
251.198
251.]96
258,210
258.210
284.]]1
264]]t
2]1.483
211.dB3
2]8.350
2]8.350
285.3]6
285,316
292.56d
292.566
299,918
299.918
307.da2
30T.442
31B.14o
315.ta0
323,016
323,018
331.0]4
331,074
339.317
339.3/]
367.]52
347.]52
356,381
356,381
3&5.209
365209
3]4,241
374,261
383,682
383,482
392.93]
392,9a1
402,809
402,609
612.506
612.506
422.631
622.631
432.989
P�eparetl by Ehiers 1nc..Please review all assumPtions.
0
0
0
0
(23.342)
(23.362)
(23.940)
(23.9a0)
(24.553)
(24.553)
(25.180)
(25.180)
(29,256)
(29.992)
(29.992)
(90.744)
(30.]4A)
(31,516)
(31,514j
(J2,302J
(32,302)
(33,10])
(33,10])
(33.932)
(33.932)
�3a,ns>
�x.ns�
(35,638)
(35,638)
(3fi,521)
(36,521)
(3].626)
(31,624)
(38,348)
(38.368)
(39.294)
0
0
0
0
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.�62)
(211.362)
(211.362)
(211.362)
(21t.362)
(2H.362)
Q11.362)
(211.362)
(211.3G2)
(211.362)
(2H.362)
(211.362)
(211.382)
(211.362)
(211.3627
I2nasz)
(211.362)
(211.362j
(211.362)
(211.362)
(211.3627
(211.362j
(211.362J
(211.362j
(211.362)
(2t1.382)
(2N.362)
(211.362)
(211.382)
(211.362)
(21t,362)
(211362)
(211.362)
(211.362)
(2N.362)
(211,362)
(211.362)
(2n.362)
(211.362)
0
0
0
0
0
(1288)
(1288j
6.101
6,101
9,615
9,615
15256
15256
21,M]
21.02]
26,932
26.932
32,9]3
32.9]3
39.iS1
39.153
65.4]6
65,a16
51,946
51.946
5e.s5a
$g 5fi6
85,336
65.336
72264
72264
T9.352
]9.352
88.604
86.604
94.024
94.02a
m�,sia
mtsia
1p9,381
109.381
11],326
117,326
125,455
125.455
133.]]2
133.]]2
162.281
142.281
150,986
150,986
159.893
159,893
169.005
169.005
1]8.328
0.0
0.0
0.0
o.o
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
a.5
5.0
5.5
6.0
6.5
].0
].5
80
BS
90
9.5
10.0
10.5
11.0
11.5
i2.o
12.5
13.0
13.5
id 0
14 5
150
15.5
16.0
�ss
i�.o
1].5
18.0
10 5
19.0
19 5
20.0
20 5
21 0
21 5
22 0
22 5
23.0
23 5
24 0
24 5
25 0
25 5
�
1-Feb
idwg
1-FeD
1-Aug
1-Feb
1-AUg
7-Fe0
1-AU9
t-Feb
1-AU9
1-Feb
1-AUg
1-Fe0
1-AUg
1-Feb
1-AUg
1-Feb
1-AUg
1-Feb
1-AUg
1-Feb
1-AU9
t-FeD
1-AUg
t-Feb
t.AU9
1-Feb
1-AUg
i-Feb
1-AUg
i-Feb
1-AU9
YFeb
t-AUg
1-Feb
1-AUg
i-Feb
1-AUg
1-Feb
i-AUg
1-Fe0
1.AUg
1-Feb
i-AUg
1-Feb
1-AUg
1-Feb
idwg
1-Feb
�
1-Feb
1-AUg
1-Fet
2003
2004
2006
2005
2005
2006
2006
2007
200]
2008
zaoe
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2016
2015
2015
2016
2016
2011
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2026
2025
2025
2026
2026
202]
202]
2028
2028
2029
2029
2030
2a30
PAlf-COMM-2 W 2<BRSTxIs
tRNG3 GIfYOF3TPNIL.PMlASLW PRQIER Pap�]a!]
VV �VY,
jR NPx R20EV¢IWrt4nt GS(nQ
Son Rate O.00OOY.
As Yott Go Revenue Note Rale ].50%
0.s Yau Go Revenue Note ISSUED 2MlOt
31 DisP CanNbuGaf Ralb WA
imes FirstTanlnUement 2005
: incremenl �s recerved in 2002 w 2W3. OiStric[vnll be Sliatened
s oFTaz Inaenwnt 26
Ext¢nstanRafe-StateEtluqCqiRate(USetltwtalalbxesno[qxincrement) 0.60000 Pay2002
alDispari4esPercRnt a25655 PaY2002
ExtensionRate-AreaWae 1.56497 Pay2002
ExtenswnRate-Frozen 1.30259 Pay2002
EztensionRate-Curten[ 130259 PaY2002
mnt � increment will vary tlepentling upon (reiket value.+ax 21es, class 2tes,
:WCOan scheEUle. a�b iMla4on an market value Inflation on taz 2tes
�ot �e pONretl.
LanG Market BuA�ing Markel Total Marke[
38.400 203.800 262.200
123.BW
-STATE EO RATE
�TOTPLCT'RFTE
Mafk¢tValue Tazes
Develapment Sq.Ft Sq FL Per
000000 0
f ]0259 62.500
Totai Total
Taxes Tu Capaary
Frepared by Ehlers Inc • G�eau review all assumptians.
0 EST
8t,d13 ESt
Tax Market
PANLOMM-200148-0ST.sls
}RCq! CIfY OF $TGAl1L •PN11lSNN ORQIEG! P�p� �ef i
a�
Begimiig Penoa
00
00
0.0
0.0
o.o
0.5
1.0
1.5
2.0
2.5
3.0
35
6.0
4.5
5.0
5.5
6.0
6.5
]0
7.5
8.0
85
9.0
95
100
10.5
i1.0
11.5
t2.0
72.5
13.0
135
160
145
150
155
160
16.5
t].0
i].5
180
185
190
195
20 0
20 5
21 0
21 5
22 0
22 5
23 0
YS 5
240
24 5
zs o
1-!wg
i-Feb
1-lw9
i-Pen
i-AU9
1-Feb
i-AU9
1-Feb
i-AUg
t-fen
YAU9
1-Fe0
i-N,g
�-Fen
i-AU9
1-Feb
t-AUg
1-FeG
1-AU9
t-FeD
1-AU9
YFeb
}-AUg
1-Feb
1-AUg
1-FeB
1-Au9
1-Fe0
t-AUg
1-Feb
1-AU9
�-FeP
1-AU9
1-Feb
1-AU9
1-Fe�
1-AU9
1-Feb
L/w9
t-Feb
1-AU9
1-Feb
YAUB
5-FeC
LAU9
1-Fe�
1-AU9
YFeb
1-AUg
1-Feb
1-AUg
t-Feb
1-AU9
1-Fe�
20U3
2003
zaoa
2004
zaos
20a5
2006
2006
2W]
200]
2W8
zooe
2009
2009
201Q
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
2U16
2016
201]
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2026
2026
2025
2025
2a26
2026
2021
202]
2028
2028
2029
2029
203�
Ai�nual
Base T�
8,t33
4,133
d,i33
6.133
a�aa
a.t33
4,t33
6.133
6.13J
4,t33
6,133
6,133
6,133
4,133
4.133
4,133
d,t33
6.133
6.133
4.133
4,133
d,t33
6.133
4.t33 - -
4,t33
4,133
4.133
4,133
6.133
6.133
4,133
4,133
4,133
4,133
4.133
4.133
6.133
4.133
4,133
4,133
6,133
4,133
4,133
6.133
4,133
4,133
6,133
6,133
4.133
6,133
4.133
b,1J3
4.133
4.133
d.133
Wb;eG
T�
6.��
4,133
4.133
6,133
4,133
6,133
62.500
62,500
62.500
62.500
ez,saa
62,500
62.500
82,500
82.500
62.`.AO
62,500
62.500
62.500
62.500
62.500
62.W0
62,500
82,500
62,500
62,500
82,500
62,500
62,500
62.500
62,500
82,500
fi2,500
62.500
62,500
62,500
62.500
82,500
82.500
62.500
62.500
62,500
62,500
62.500
62.500
62,500
62,500
62.SW
62,500
62,500
62.`AO
62,500
62,500
62,500
82,500
Capturetl Se�ra-Mnual Sbte Se�ri�Ninual ANrvNPoofmg SertaAmual SemFMnual EnQng PerioG
Taz Gpatlry Tax AuE. P2yment Cuass Ta�t Payment BOnE Net Paymant Oat�
0
0
0
0
a
0
58.36]
5g.35]
58.36]
58.38]
�.�z
58,36]
58.%]
sa.ae�
56,35]
58.38]
58.36]
58,36]
56,36�
58.36�
SB.36]
58,38]
58,36�
56,367
58,36]
58,36]
58,367
58.39]
58.38�
58.36]
56.367
58.367
58,367
59,36]
58,36�
58,38]
58,36]
58,36]
58,367
58.3E�
58,36�
58,367
59.36�
56,36]
56,361
58.3G7
58,36]
58,36]
58,361
58.361
56.367
58.96]
58.38]
58,36]
56,361
0
0
0
0
0
0
38.014
38,014
38,016
38.014
aa.ata
38,01a
38,016
38.014
38,014
38.ma
38.016
38,016
38,016
38,014
38,016
J8.014
38.016
38,014
38,01a
38.016
38,014
38,014
38.014
38,014
38,414
38,014
38.014
38,014
3E.m4
38,014
38,014
36.014
38,014
38.01a
38,014
38,014
38,014
38,01a
38,014
38,014
38,m4
38,016
38,014
38.014
38.Otd
38.01a
38,016
38,016
38,014
0
0
0
0
0
0
(���
(��)
(��)
I��)
It�)
(��)
(19�)
(+�l
(190)
���)
(��)
(�so�
(��)
(190)
(190)
It9a)
(190)
(194�
(1901
(190)
(190)
(��1
(��)
S��)
(��)
(��)
���)
(190)
(190)
(190)
(190)
(190)
I��)
(190)
(190)
�190)
(190)
(190)
I��)
(��)
(190)
I��)
(190)
I��I
0
0
0
0
0
0
37.824
]],826
3�,824
31,824
a7,flza
3],824
W,824
3],e24
3],824
3],824
37.824
31.82a
3].826
3],826
3],824
37,824
37.82a
3].824
3�,824
37.82a
3],826
3],824
37,824
3].82a
3].826
3],826
3],824
3],824
3],ffi4
3].824
31.82a
3].824
31.826
3],826
3],826
3�,826
3],826
3],824
3],826
31,826
3�,824
3].82a
3�,82A
3],826
3],824
31.824
PtepareC by EM1lers Ine. -Please �¢view all sssumptions.
0
0
0
0
0
0
(3.]82)
(3,782)
(3.]92)
(3,]82)
(3.]82)
(3,]82)
(3)827
(3,]82)
(9)82)
(3,182)
(3,]82)
(3,782)
(3,182)
(3,]82)
(1.]82)
(3,]82)
(3.182)
(3.182)
(3.782)
(3.782)
f3.]82)
(3,182)
(3,]82j
13.�a2)
(3,]82)
(3,�82)
(3.]82)
(3,]82)
0
0
0
0
0
0
34.062
34.042
36.aa2
34.042
36 062
34,042
34.042
36.062
aa.oaz
34.042
34.042
x.oaz
34.042
36 042
36.062
34.062
36.042
34.042
sa.oaz
34.042
3d.042
36,062
34.642
34.042
3a.042
34.0a2
34.062
34.042
34.042
34.042
34.042
3A.a42
3a.062
34.042
34.042
36.�42
34.042
34.042
36.�62
34.062
34.042
36,042
3d.Od2
aa.oaz
34.042
34.042
3a.042
36.Od2
36.�62
0.0
0.0
0.0
a.0
0.5
1.0
15
2.0
25
30
35
40
4.5
5.0
5.5
60
fi.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
11.5
12.0
12 5
13.0
13.5
id.0
16.5
150
155
160
16.5
1].0
i].5
18.0
18.5
t9.0
19.5
20.0
20 5
21.0
21.5
22.0
22.5
23.0
23.5
24.0
2a.5
25.0
25.5
1-Au9
t-Feb
1-AU9
bPeb
t.Au9
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1.AU9
t-PeE
1-Au9
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1-Feb
1-AU9
1-Peb
1-AU9
1-Feb
1.AU9
i-Feb
1-AU9
1-Feb
1�AU9
1-FaC
1-AU9
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1-AU9
1-Feb
t-AU9
1-FeD
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1-AU9
1-Feb
1.AV9
1-Feb
1-AU9
1-Feb
i-AUg
t-Fe6
1-AU9
1-Feb
i-AU9
2003
200M1
200a
2005
2005
2006
2W6
200]
200]
2008
2008
2009
2009
zaio
zmo
2011
2011
zmz
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2019
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2026
2025
2025
2026
2026
2azt
202]
zoze
2028
1A29
2029
2030
2030
PAN-COMMd00Z-08-0ST.xls
Y/3Y03 CRY OF ST pM)L-YN! M14NM FRQJECT P�p� 5 ot]
aa-a�wt
n Rate
: You Go Revenue Note Rate
: You Ga Revenue Note ISSUEO
ti5P CanVr�ution RaEo
tes Firsi Taz Inaement
mementisrece�veAin2W2or2003. d¢ficlwipEeshaM1e�ed
of Tan Increment
�[msion Ra�e -State Etluotion Ra[e (USad fwbtal e.ie5 wt ba maement)
O�sparities Percent
RenSwn Rale -Are3 Wtle
dension Rale - froxen
aension Ra[e-CUrtent
it of invement vnll vary tlapentling upon market value, iax 2tes, tlass 2tss,
UCOIXI SCM1¢dllk, dfitl IIN�140f1 IXI (RM12t valUB. IflfldLql IX16X 2125
New ReCevebprtent D�sNCt
O.00OOY
]SO%
9V01
WA
2005
28
o.eaaoo �arzooz
025655 PdY2W2
1.56497 PaY 2002
1.30259 PaY 2002
1.30259 PaY 2002
LantlMarket BuiitlingM2rke� TolaiMarket
38,600
Cammermi 301,05]
Otner
85]6%
242.200
123,800
990.598 1.SOYo-2.00Ye 39,062
1T3.H00 1.SDk 1.85]
Prepared by Ehlers Ina -Please Yaview all auumptions.
PANLOMM1002d6-0ST.xls
}/3Y03 Clf'/OF 9i PMIL. FMV ASW1 iROJECT PaP 6 al]
Qa - ar�
eegi(utinp PeriaC
0.0
0.0
0.0
0.0
0.0
0.5
1.0
1.5
20
25
3.0
35
60
45
50
55
60
8.5
].0
].5
8.0
8.5
9.0
9.5
10.0
10.5
110
115
12.0
12.5
130
135
140
145
15.0
155
18.0
165
1Z0
il5
i8.a
ies
19.0
19.5
20.0
20.5
21.0
21.5
22.0
22.5
23 0
23 5
2a.0
2a 5
25 0
1-Feb
�
1-Feb
1 Aug
t-Feb
�-�+B
1-FeD
t-fwg
1-Feb
bAUg
1�Feb
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1-Feb
1-AU8
1�Feb
1-AUg
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1-Feb
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1-Fe0
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1-AUg
1-Feb
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1�Feb
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1-Feb
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1-Feb
t-AU9
1-Feb
1-AUg
1-Feb
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1-AUg
1-Fe�
1-AUg
1-FeD
1-A�8
t-Feb
i-AUg
1-Feb
i-AUg
1-FeD
i-Aug
1-Feb
2003
2003
2W4
2004
2005
2005
2006
2008
200]
2007
2008
2008
2009
2009
2010
2010
2011
2011
2o1z
2012
2013
2013
2014
2616
2015
2015
2016
2�16
2017
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
202]
202]
2028
2028
2029
2029
2030
Mnual Project GP�� Se�Mn�al S6te Serti-Mnual ACrteNPOO�r.B Sem-Mnual Se�-Mnua� Endn9 Periatl
B25e Tax 7az Tu Capatity Tax AuQ Pdy�mnl Gross Taz Payment BonG Ne[ Payment Datc
48283
48283
68.283
48.28J
48.283
68.283
48.283
a8.283
C8.283
48,283
48.283
48,283
48.283
48,283
48,283
d8,283
A8,2B3
aa,zaa
C8,283
48,283
d8.283
48.283
C8.283
48.283
d8283
48.283
48,283
d8183
48,283
48283
48,283
48,283
48,283
C8.283
48,283
48,283
48,203
48 283
48,283
48283
48 283
48283
68,283
48.283
48.283
66283
48283
48283
68283
48,283
68.283
48283
48.283
48,283
48.283
48.283
68$83
aa2e3
48.283
408,4]2
608,4]2
6]6,0]9
4]6,0]9
aB5,532
685,532
495,204
695.206
505,100
505,100
515723
515,713
525,581
525,581
536,1]8
536,118
SM1] 020
56],020
5`A,112
558,112
589,460
569,660
581 p]t
591 011
592,950
592,950
605,1�3
605,10.3
619,537
61],53]
830,258
630,258
60.3,2]3
643,2]3
65G,588
856,588
6�0,212
6T0,212
686.149
684,149
698,409
898,603
]12,999
712,999
]2],925
T2].925
T63,196
4
4
0
0
360,188
3fi0.188
62],796
62].]96
A3T.249
L37269
448.921
446,921
656,816
d58,816
466,940
466,9C0
an.ne
an,2se
48],896
68].894
498,136
498.736
509.828
509.828
521.II]
sztm
532.18�
532.]8]
544.666
566,866
556,819
558.819
569,253
5G9.253
581.974
581,9]a
596.989
594.989
608,305
606,305
621,928
621.928
635,B66
635,8fifi
650,128
650.126
6Ga,]15
666,]15
6]9.841
0
0
0
0
23a,589
236.599
2]8.621
2]8.621
zaa.ne
284,T/8
291.OT/
291,OT]
29].522
297.522
304p16
304,118
310,861
310,861
317,763
31],]W
326,826
324,824
332.049
332.0a9 -
339.46�
339.440
347,002
36].002
354,TJ8
354.738
362.854
362,65d
3]0,]52
3]0,]52
3]9,037
3]9,03]
38],513
38�,513
398,186
396,iB6
405,059
605.059
414,136
414,136
623.626
623,424
432.926
A32.926
d42,8A]
442.64]
452,593
452,593
462.769
462,769
4]3,180
0
0
0
0
233.416
233,616
2]1.228
zn,aze
283,351
283,354
289.622
289,622
296.034
296,034
302,595
302,595
309,30]
309.30]
316,1]6
316,114
323,200
323,2C0
330,388
330,38H
337,743
33].]a3
365,28]
345,26]
asz,sss
352,965
360,840
360,840
368,898
368,898
an,iaz
3]T,142
385,5�6
385,5]6
39a,205
396,205
403,033
403,033
412,066
412,066
421,30]
621,3W
630)61
430,161
0
0
0
a
(1.173)
(1.1]3)
(1.393)
(1,393)
(1.624)
(1.424)
(1,455)
(1,455)
(1.488)
(1,488)
(1,5217
(1.521J
(i.ssaJ
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(1.SB9)
(1.509)
(1 626)
(1,624)
(1,660)
(1,660)
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(1.735J
(1.T35)
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(1,813)
(i.85d)
(1.BSA)
(1,895)
(1,885)
(1,938)
I1,938)
(1.981)
(1,981)
(2,025)
(2.0251
(2.0117
(2.011)
(2.1177
(2.117)
]Sh
Prepare0 by Ehlers Inc -Please review all assumpUans.
0
0
a
0
(23.362)
(23.362)
(27.723)
(21.123)
�ze.sas)
(28,335)
(26.962)
(28,962)
(29.W3)
(29,603)
(30,259)
(35,296)
(35296)
(36,086)
(38,084)
(J6,890)
(36,890)
(37,]16)
(3].116)
(38.558)
(�.�)
(39,620)
(39,620)
(60.303)
(40,303)
(41,20])
(61.20])
(42,131)
(42.131)
(63,0]6)
(63,0]6)
(44.043)
0
0
0
0
(211.362)
(211.382)
(211.382)
(2tt.362)
(211.362)
(211.362)
(2n.362)
(211.382)
(211.362)
(211.362)
(211.382)
(211.362)
(211.362)
(211.362)
(2N,362)
(211.362)
(211.382)
(211.362)
(211.362)
(2ti.3627
(211.382)
(211.362)
(217.362)
(211.3821
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(211.362)
(2H.362)
(211.362)
(211.362)
�
0
a
0
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(1288)
38,143
38,143
43,65]
43,65/
49,298
49,298
55,069
55,069
60.9]3
60,9]3
67,014
67,014
73.195
]3,195
]9,518
79,St8
B5,988
85.988
92.808
82,606
99,378
99.3]8
t06,306
t06,306
113,394
113,341
120.646
120.646
128,066
128,066
135,656
135,656
143,422
163.622
151,368
t51,36R
159.49]
159.4W
18],816
16],814
i]6.323
i]6,323
185,028
185,028
193.935
193.935
203.04]
203,06]
212.3]0
0.0
0.0
o.o
o.o
o.s
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
].5
B.0
8.5
90
95
10.0
10.5
11 0
11.5
12.0
12.5
130
13 5
14.0
14 5
150
15.5
16.0
185
1].0
11.5
18.0
18.5
19.0
19.5
20.0
20.5
21.0
21.5
22.0
22.5
23.0
23.5
2a.0
26.5
25.0
25.5
1-AUg
YFeO
1-AU9
YFeb
1-Aug
1-Feb
1-AUg
t-Fe�
1-AU9
t-Feb
1-AUq
i-Feb
1-AUg
i-Feb
1-AU8
1-Feb
�-�B
LFeb
1-AU9
1-Feb
1.AUg
1-Feb
�-�8
]-Feb
1-AU9
1-Feb
1.Aug
YFeb
1-AUg
7-Feb
1-AUg
1-Feb
1-AUg
1-Feb
1-AUg
1-Feb
1-AU9
1-Feb
�-�+9
1-FeD
1-AU9
1-Feb
1-AUg
1-Feb
i-AUg
1-Feb
1-AU9
1-Feb
1-twg
1-Feb
1.AU9
1-Feb
1-AU9
1-Feb
2W3
2004
200d
zaas
2W5
2006
2006
200]
200]
2008
2008
2009
2009
2010
2010
2011
]O11
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
201]
201]
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
zoza
2024
2025
2025
2026
2026
202]
2021
2028
2028
2029
2029
2030
2030
PANLOMM-20024BFST.xIs
]llNY3 CIIY OF $T FNIL � PAN ASWI PRQIECI pap� ] M]
a a-�a�\ ?
wMatkeNaWe-ESc
Dfiuence
esent Value MTax Inaement
Likely lo Oavr WiNw� ¶F is Less Than.
22.355.900
6.209.459
16.146,441
16,146,661
PrePared by Ehlers Ine. - Please review �II assumpftons. PAN�COMM•200246�PSTSIs
oa-a�?
EXFIIBIT C
Estimated Impact on Other Ta�ng Jurisdictions
IMPACT ON TAX BASE
Ramsey County
City of St. Paul
ISD No.625
2001/2002
Total Net
Tax Canacitv
419,554,880
181,113,311
181,113,981
360,188
360,188
360,188
Percent of CTC
to Entitv Total
0.0859%
Q.1989%
0.1989%
IMPACT ON TAX RATES
Ramsey Counry
City of St. Paul
ISD No.625
Other:
Total
2001/2002
Extension Rates
0.507640
0387230
� �:.�t
0.059030
1302590
Estimated Captured
Tax Capacity (CTC�
Uoon Comnletion
Percent
of Total
38.97%
29.73%
26.77%
4.53%
100.00%
CTC
360,188
360,188
360,188
360.188
Potential
Taxes
182,846
139,476
i25,594
21.262
469,177
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the 2001/Pay 2002 rate. The total net capacity for the entities listed above are based
on Pay 2002figures.
I�
oa - a��
BRUCE A. RASMUSSEN
DAVID G. HARSi'AD
BRUCE A. RASMUSSEN & ASSOCIATES, LTD_
ATfORNEYS AND COUNSELLORS AT LAW
eEwcassrsra�•rs:
LEE A. SANFORD - TRANSACIIONS
MICHELE R. SfREIR - LTI7GATION
OFCOUN4L
lAMES L. }�IlAND. lR.
2116 SECOND AVENUE SOUTH
MINNEAPOLLS, MINNFSOTA SSMM
612.874J071
FAX: 612.874.9793
March 26, 2002
Mayor Randy Kelly
Council Member Jerry Blakey
Council Member Chris Coleman
Council Member Pat Harris
Council Member Jay Benanav
Council Member Jim Reiter
Councii Member Dan Bostrom
Council Member Kathy Lantry
Tony Schertler, Interim Director, Dept. of Planning and Economic Development
City Hall
St. Paul, Minnesota 55102
Re: University and Dale Tu� Increment Financing District
Our File No. 5084.048
Dear Mayor Kelly and Members of the Ciry Council:
We represent the Disabled American Veterans Department of Minnesota,
Inc. ("DAV"), a non-profit corporation whose membership comprises 18,500 disabled
veterans throughout Minnesota. Each of the DAV's members was disabled in the line of
duty during time of war. We are contacting you to express the DAV's opposition to the
establishment of a tax increment financing district at the intersection of Dale and University
("Unidale TIF") and to the proposed condemnation and demolirion of the building Irnown
as the Unidale Mall.
The DAV operates a thrift store in the Unidale Mall in the southeastern
quadrant of the intersection of Universiry and Dale. The thrift store occupies over 17,000
square feet in the Unidale Mall. This store generates some $250,000 in annual revenue that
is used by the DAV to maintain several veterans' service programs throughout the state,
including the DAV Transportarion Network that last year delivered 27,400 veterans to VA
hospitals. In addition to providing funds far the DAV's programs, the thrift store serves
the local community by providing jobs and merchandise at low prices.
ti
BRUCE A. RASMUSSEN & ASSOCIATES, LTD.
March 26, 2002
Page 2
If the Unidale 'TIF is approved, the Unidale Mall will be demolished.
Successful relocation of the store is very unlikely for a variety of inter-related reasons. As
a result, demolition of the Unidale Mall will likely cause the permanent closing of the thrift
store and the termination of the veterans' service prograzns that it supports. The
possibility of permanent loss of the thrift store has led the DAV to e�plore possible legai
remedies to protect its veterans service programs.
Among other things, we are of the opinion that the proposed Unidale TIF
district would not comply with staCe law. We have prepared a detailed analysis, and have
attached it for your review.
For the reasons described in our memorandum, the DAV respectfully
requests that the Council reject the proposed University and Dale Tax Increment Financing
Plan. If you desire additional information, please contact either of the undersigned or
Philip Getts, Esq. at the same address.
Sincerely yours,
BRUCE A. SSEN SSOCIATES, LTD.
,/ ;
�
�� .
v
Bruce A. Rasmussen
BAR:Is
d a' �')
�oxnrmuM
TO: Mayor Randy Kelly
Council Member Jerty Blakey
Council Member Chris Coleman
Council Member Pat Aarris
Council Member Jay Benanav
Council Member Jim Reiter
Council Member Dan Bostrom
Council Member Kathy Lantry
Tony Schertler, Interim Director, Dept. of Pluining and Economic
Development
FROM: Bruce A. Rasmussen, Esq. and Phillip Getts, Esq.
Disabled American Veterans Department of Minnesota, Inc.
RE: University and Dale Tax Increment Financing District
DATE: Mazch 26, 2002
The DAV opposes the Unidale TIF in the first instance because this project
threatens its revenue stream. The DAV also opposes the Unidale TIF because the proposed
TIF district and the exercise of the City's power of eminent domain violate Minnesota law in
several important respects.
As you know, the use of tu� increment financing is closely regulated by statute.
Minnesota Statutes (2001) §§469.174 - 469.179 impose many complex and detailed
requirements upon the use of the TIF process. The proposed Tas Increment Financing Plan
for University and Dale fails to satisfy these requirements in three important respects:
1. An insufficient number of buildings in the proposed TIF district are
"structurally substandard;"
2. The Unidale TIF does not satisfy the requirements for non-contiguous
TIF districts; and
3. The inclusion of two lots on the north side of University Avenue appears
to be a sham intended to circumvent the statutory requirements.
Each of these objections will be reviewed below. The informarion about the nature of the TIF
district is taken from "Report of Procedures Used and Results Obtained for Determining Tas
.
Mayor Kelley
Council Members
March 26, 2002
Page No. 2
� a _
Increment Financing District Elegebility [sic] for Proposed `Global Village' Tas Increment
Distdct," dated December 4, 2001 and prepared by The I.eonard Parker Architects' (hereafter
°Pazker Report"), and "Tax Increment Financing Plan" for the "University and Dale Tax
Increment Financing Disirict," prepared by Briggs & Morgan ("Unidale Tff+ Plan;" trris report
is undated).
1. The Unidale TIF' Is Unlawful Because Fewer Than �fty Percent (50%)
of the Structures in the Proposed TIF District Are "Structurally Substandard." A
"redevelopment TIF districY' can only be established where "more than 50 percent of the
buildings" in the district are "structurally substandazd to a degree requiring substantiai
renovauon or clearance." Minn. Stat. (2001) §469.174 Subd. 10(a)(1) (emphasis added). The
Parker Report identifies three buildings in the proposed district: the Wendy's restaurant, the
Unidale Mall, and the auto repair garage on the north side of University. Parker Report, p.
1. The Parker Report concedes that the Wendy's restaurant "was found to not meet the
criteria for structurally substandard status." Id. Thus, if either of the other two buildings fails
to satisfy the statutory definition of "structurally substandard," the TIF district is unlawful.
The information contained in the Parker Report demonstrates that neither of the other two
buildings satisfies the statutory test.
The TIF statute defines "structurally substandard" to mean "containing defects
in structural elements or a combination of deficiencies in essential utilities and faciliries, light
and ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors, which defects or deficiencies ue of su�cient total significance
to justify substanrial renovation or clearance." Minn. Stat. (2001) §469.174 Subd. 10(B).
This definirion of "structurally substandard" contains an important exception:
A building is not structurally substandard if it is in compliance with the building
code applicable to new buildings or could be modified to satisfy the building
code at a cost of less than 15 percent of the cost of constructing a new structtue
of the same square footage and type on the site.
i Leonard Pazker Architects were hired by the City of St. Paul to prepare the Parker
Report. Leonazd Parker Architects are also the architects for the Pan Asian
Development Group, which is a rather obvious conflict of interest.
.
Mayor Kelley
Council Members
March 26, 2002
Page No. 3
�
Minn. Stat. (2001) §469.174 Subd. 10(c). The Parker Report relies on this exception to
support its conclusion that the buildings in the Unidale TIF district are structurally
substandard. In fact, the Pazker Report on its face demonstrates that the buildings in the
proposed TIF district do not sarisfy the statutory test.
The Parker Report estimates that the cost of rebuilding the Unidale Mall is
$5,621,344. Pazker Report, p. 5. The Report identifies four repairs necessary to cure "code-
related deficiencies:" re-roofmg, wall insulation, fire fighung systems, and replacement of
ceiling tiles. These four repairs have a total estimated cost of $888,893, or 16% of the
esrimated replacement cost. Parker Report, p. 5. Thus, the aggregate cost of all of the repairs
suggested in the Parker Report barely exceeds the statutory threshold of 15% of the
replacement cost. More importantly, two of the suggested repairs - wall insulation and
replacement of ceiling tiles - do not involve structural repairs. The Minnesota Court of
Appeals recently held that non-structural repairs could not be considered in deternuning
whether a building satisfied the statutory test of "structurally substandard." Walser Auto
Sales, Inc. v. City of Richfield, 635 N.W.2d 391, 403 (Minn. App. 2001).
The holding in the Walser case dooms the Unidale TIF because the cost of
renovating the Unidale Mall does not meet the statuto,ry threshold. Accarding to the rule
announced in Walser, the replacement of ceiling tiles and insulation of the walls cannot be
considered in determining whether the Unidale Mall is structurally substandard. When the
cost of these two repairs is excluded, the total cost of eligible repairs drops to $698,875, or
12.4% of total reconstruction cost, an amount well below the statutory threshold of 15%.
Even if only one of these items were deleted, the total cost of eligible repairs remains less than
the statutory minimum.
The Parker Report does not state why the roof on the Unidale Mall must be
replaced. Parker Report, p. 6. Further investigation is required to suppart any finding that
the roof of this building is "structurally substandard." Leaks in a flat roof, unless they
threatened the roof's structural integriry, do not constitute "structural defects" because the
leaks could be repaired without replacing the entire roof. If replacement of the roof is
necessary only to satisfy the energy conservarian requirements of the building code, the
holding in the Walser case precludes the consideration of these costs because such costs do not
concern the structure of the building.
The building on the north side of University Avenue may likewise fail to meet
the statutory test. According to the Parker Report, the total estimated reconstruction cost for
trus building is $542,280. Pazker Report, p. 5. Two of the suggested repairs, roof insulation
Mayor Kelley
Council Members
March 26, 2002
Page No. 4
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and remodeling of the toilet, cannot be considered in applying the statutory test. When these
two items are eliminated, the cast of the remaining repair - replacement of roof shingles -
constitutes 15.2% of the estimated replacement cost. Parker Report, p. 6. As with the roof
on the Unidale Mall, the Parker Report does not state any reason for replacing the shingles
on ttus building. If this cost is eliminated, the building on the north side of University also
fails to meet the statutory test of "structurally substandard."
The Unidale Mall and the Wendy's restaurant are not structurally substandard
within the meaning of the TIF statute. Even assuming that the other building in the proposed
TIF redevelopment district satisfies the statutory defurition of "structurally substandard," the
Unidale TIF is unlawful because two of the three buildings - fewer than fifty percent of the
total - are not "structurally substandard." Therefore, the Council may not lawfully fmd that
"more than 50 percent of the buildings [in the TIF] ... aze structurally substandard" as
required by the TIF statute. Minn. Stat. (2001) §469.174 Subd. 10(a)(1). The City Council
should not approve a TIF district where, as here, the report of the City's own consultant
demonstrates that proposed district violates the TIF statute.
2. The Unidale 1'IF Does Not Satisfy the Requirements for Non-contiguous
TIF Districts. The Unidale TIF comprises two pazcels on the north side of University
Avenue (545-555 Universiry Avenue) and two parcels on the south side (Wendy's and the
Unidale Mall). The two groups of parcels are divided by University Avenue, which is both
a state riunk highway and a Federal highway. A large median strip divides eastbound and
westbound traffic lanes on University Avenue. Thus, the two groups of parcels are not
contiguous. This fact also renders the Unidale TIF unlawful.
The TIF statute states that "For [TIF] district consisting of two or more
nonconuguous azeas, each area must qualify as a redevelopment district under paragraph (a)
to be included in the district, and the entire azea of the district must satisfy paragraph (a)."
Minn. Stat. (2001) §469.174 Subd. 10(fl. This provision requires that each of the rivo
noncontiguous areas in the Unidale TIF contain the required percentage of "structuraily
substandard" buildings in order to qualify as a redevelopment TIF. The Parker Report
demonstrates that the azea on the south side of University Avenue does not meet this
requirement.
As noted above, the Parker Report concedes that the structw containing the
Wendy's restaurant is not "structurally substandard." Parker Report, p. 1. Even if the
Unidale Mail were to satisfy the statutory definition, only 50% of the buildings in the area
south of Universiry Avenue would satisfy the statutory test. The TIF statute expressly requires
,
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Mayor Kelley
Councit Members
March 26, 2002
Page No_ 5
that "more than SO percent of the buildings" in a redevelopment district must be structurally
substandard. Minn. Stat. (2001) §469.174 Subd. 10(a)(emphasis added). The area south of
University Avenue therefore does not quatify as a TIF redevelopment district_ Because the
two areas in the Unidale TIF are non-contiguous, the southem parcel must meet the statutory
test independendy of the status of the building on the parcel across University Avenue. The
Parker Report on its face demonstrates that the southem pazcel does not qualify as a TIF
redevelopment district, and this land must be excluded from any TIF plan. Appzoval of the
Unidale TIF without deleting the southerly parcel would violate the TIF statute.
3. The Inclusion of Two Parcels on the North Side of University Avenue
Appears to Be a Sham Intended to Circumvent the Statutory Requirements. The fact
that the parcel on the south side of University Avenue does not, by itself, satisfy the TIF
statute may explain why the two parcels on the north side of University were included in the
proposed TIF district. According. to the Unidale TIF plan prepared by Briggs & Morgan, the
HRA presenfly has no plans to develop these lots. The report notes that "With completion of
the development of the southeast comer, it is anticipated that there will be enhanced market
support to stimulate the redevelopment of the building located at 545-555 University Avenue."
Unidale TIF Plan, p. 3. A glance at a city map shows that the parcel containing the Unidale
Mall and the Wendy's restaurant is not direcdy contiguous with the two parcels on the other
side of University Avenue and, more importantly, that the northem parcels have no
relationship or connection with the much larger parcel containing the Mall and Wendy's. Any
connecrion between the northern and southern parcels is made even more tenuous by the large
median strip that divides the traffic lanes on University Avenue. According to the Unidale
TIF Plan the southern parcel is the actual focus of redevelopment efforts, and the two
northern parcels may never be redeveloped. Further, among the thousands of documents that
make up the PED files regarding the proposed project, there was not a sentence mentioning
any desire to spur development on the two parcels on the north side of Universiry Avenue.
There is, however, extensive discussion of the use of tax increment fmancing for the Unidale
Mall site dating back years before the Parker Report was prepared.
These facts lead inevitably to the conclusion that the two parcels on the north
side of University Avenue have been included in xhe proposed TIF district for the exclusive
purpose of obtaining a sufficient number of appazenfly substandard buildings to satisfy the
statute. The council should not approve such an obvious attempt to evade state law.
ATTACHMENTS: Parker Report
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DEPARTMENT OF MINNESOTA, INC.
STATEYETERIWS SERVICE BU1LDlNG. Si: PA114 �NNESOTA 55155
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DISABLED AMERICAN VETERANS
THRI�T STORE
FACT SHEET
Owner: I3isabled Ameri�an Veferans Department of Minaesota, 7uc.
#�ttt�ding better lives for sil our nation's disabled veterans andtheir families.
• 3.8,500 menlbers
* 33 Chapters loca�d throughout Minnesota
Anchor Tenant of Uaidale Mall siace 1986.
�` Serves 147,000 res�denRs of fhe Frogtown and S�mit Univeisity neighborhoods annually.
• Emptoys 40 empioyees with annual payrolt in excess of $1,000,000.
ThrifE SMre revennes fuqd the se�vitce programs of tlte Disabled Ameriean Veteran.s.
* DAV Ttanspox[ation Netwotk �ansporfs Minnesota vet�rans to VA ht�spifaI
* 27,400 veterans sunually
* 95,961 volwiteet driving hours
* 1�65,000 miies driven
*. Installed and mainfains sa#ellite telewisiou receivers in all five Minnesota Vetc�ans Homes�
* AlI 450 rooms bave a television set and staud r�iYh sateUite service
* $300,000 instailation cosfs
' $28,000 annual subscriphon cost
* RepresenYS veterans makiag claims agaiast the Veteias�s Adu►inistration resniting in
annuai benefits of $36,000,000_
� Provides 4,000 clotbing vauchers to veterans each year
The DLSabled Americ�a Veteians Thrift Store reeeaues are essemaal {ror the continuxtion of these
and other vete�ans progams-
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1
2
3
4
Presented By
Referred To
Council File # �.Z — p0 1
Resolution #
Green
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
RESOLUTION NO.
# ����.zy
Date
5 RESOLUTION APP OVING
6 AMENDMENT OF TAX INCREME T FINANCING PLAN FOR
7 THE SAINT PAUL NEIGHBO OOD REDEVELOPMENT
s TAX INCREMENT FIN CING DISTRICT NO. lA
9 (SCATTERED SITE) THE E5TABLISHIVIENT
io OF THE UNIVERSITY DAI.E TAX INCREMENT
i t FINANCING DISTRI T AND THE ADOPTION OF A
12 TAX INCREMENT INANCING PLAN THEREFOR
13 WHEREAS, the City Council of the ity of Saint Pau) (the "City") has heretofore, at the request of the
14 Housing and Redevelopment Authority the City of Saint Paul, Minnesota (the "Authority"), pursuant to a
15 resolution adopted on March 17, 1987 e"Redevelopment Plan Resolution"), approved a Redevelopment
16 Plan ("Neighborhood Redevelopmen lan") for the Saint Paul Neighborhood Redevelopment Project (the
17 "Redevelopment Project Area"); an
1 s WHEREAS, in order to
19 Authority, with the approval
2o Financing District No. lA (
21 Financing Plantherefore ( e
f ance public redevelopment activities in the Redevelopment Project Area, the
o the City established within the Redevelopment Project Area, Tax Increment
attered Site), (the "Scattered Site TIF District"), and adopted a Tax Increment
"Scattered Site TIF Plan"); and
22 WIIEREAS, the Authority desires to amend the Scattered Site TIF Plan to delete certain parcels from
23 the Scattered Site TIF Aistrict as set forth in a docuxnent presented to the City Council on this date entitled
24 °Amendment of Tas Increment Financing Plan for the Saint Paul Neighborhood Redevelopment Tax
25 Increment Financing District No. lA (Scattered Site)" (the "Scattered Site Amendment"); and
;
26 WIIEREAS, new private inveshnent that fully realizes the potential of the Redevelopment Project
27 Area, and meets the City's goals and objectives is unlikely to occur unless fiuther public action is undertaken
28 to continue preparing the Redevelopment Project Area for redevelopment and to continue guiding its
29 transformation; and
30 WHEREAS, the Authority has provided an opportunity to the Ramsey County Boazd of
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31 Commissioners and the School Boazd of Independent School District Number 625 to meet with the Authority
32 and has presented them with copies of the Scattered Site Amendment; and
33
34
35
36
37
38
39
WHEREAS, the relevant provisions of state law require that the goveming body of the City approve
any modification or amendment to the Scattered Site TIF Plan following a public he � thereon.
VJHEREAS, the Authority has also asked the City Council to approve the cr on, within the
Redevelopment Project Area, of a tas increment financing district as a redevelop nt taY increment financing
dishict under Mi�esota Statutes, Section 469174, Subdivision 10 (the "Univ ity and Da1e Tas Increment
Disirict"), and the adoption of a Tax Increment Financing Plan therefor, all suant to and in accordance
with Minnesota Statutes, Secfion 469.174 through 469.179 (the "Tax Incr ent Act").
4o WHEREAS, the Authority has performed all actions required b aw to be performed prior to the
al creation of the University and Dale T� Increment District and ado on of a Tas Increment Plan therefor,
42 including, but not limited to, notification of the Ramsey County mmissioner representing the azea of the
43 County in which the University and Dale Tas Increment Financ' g District is located, and delivering a copy
44 of the T� Increment Financing Plan to Ramsey County and I dependent School District Nuxnber 625, which
45 have taxing jurisdiction over the property to be included in e University and Da1e Tax Increment District.
46 NOW, THEREFORE, BE IT RESOLVED, by th ity Council of the City of Saint Paul, Minnesota, as
a7 follows:
48 Section 1
49 1.01
Approval of Amendment to the
The City Council hereby
50 upon the data and other information
51 information auailable to the Council
52 within the meaning of Minnesota St�
53 prior resolutions of the City Council
54 ratified and confirmed. i
55 1.02 The City Council
56 hereby finds that the land
57 not be made available for
58 reasonably be expected to
59 without the use of taY inct
Site Tax Increment District.
t, upon the evidence presented at the public hearing and
stated in the Scattered Site Amendment, and other
that the Scattered Site TIF District is a"redevelopment district"
tion 469.174, subdivision 10. The findings set forth in the
; the establishment of the Scattered Site TIF District aze hereby
;J�y reaffirms its findings in the Redevelopment Plan Resolution and
ftedevelopment Project Area and the Scattered Site TIF District would
ient or development, nor would the provision of new development
ly through private investrnent within the reasonably foreseeable future
the other public assistance sought and to be provided.
60 1.03 T'he City C�ncil hereby reaffirms its findings in the Redevelopment Plan Resolution and
61 hereby fmds that the prop,�sed development and redevelopment within the Redevelopment Project Area has
62 not occurred nor would q'ccur solely through private investment within the reasonably foreseeable future
63 without significant public fvancial assistance, that usual sources of public revenue are not adequate or
64 available to provide the required level of such public assistance and that, therefore, the use of t� increment
65 financing is necessary,to the accomplishment of the development and redevelopment of the Redevelopment
66 Project Area, in accordance with the Redevelopment Plan.
67 1.04 The City Council hereby finds that the Scattered Site Amendment, will afford maximum
68 opportututy, consistent with the sound needs of the community as a whole for the provision of new mixed use
69 development and other development or redevelopment of the Redevelopment Project Area by private
7o enterprise.
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71 1.05 The City Council hereby fmds that the Scattered Site Amendment conforms to the Saint Paul
72 Comprehensive Plan and the general plan for the development of the community as a whole.
73 1.06 The City Council approves the Scattered Site Amendment as submitted and the Authority is
74 directed to file copies of the Scattered Site Amendment with the Minnesota Department of Revenue and the
�5 Ramsey County Department of Tasation and Records Management.
76
77
Section 2. Findings for the Creation of t1�e University and Dale TaY Increment
Adoption of a Tax Increment Financing Plan therefor.
m
78 2.01 The City Council hereby finds that the creation of the University and e Tas Increment
79 Financing District and adoption of the Taac Increment Pian therefor, aze intended , in the judgment of the
80 City Council, its effect will be, to carry out the objectives of the Redevelopment an and to create an impetus
81 for the redevelopment of blighted structures and the construction of mixed use mmercial, cultural and
sz housing development , and will othenvise promote certain public purposes accomplish certain objectives
83 as specified in the Redevelopment Plan and University and Dale T� Incre ent Financing Plan.
84
85
86
2.02 The City Council hereby fmds that the University and
qualifies as a"redevelopment district" within the meaning of the
reasons:
T� Increment Financing District
ment Act for the following
87 The District is, pursuant to Minnesota Statutes, �e.btion 469.174, Subdivision 10(a)(1),
88 a"redevelopment district" because it consists of a pro , t or portions of a project within which
89 the following conditions, reasonably distributed thr hout the District, exist: (1) parcels
90 consisting of at least 70% of the azea of the Distr' Z�'are occupied by buildings, streets, utilities,
91 or other improvements; and (2) more than 50% f the buildings ue "structurally substandard"
92 (within the meaning of Minnesota Statutes, S'tion 469.174, Subdivision 10(b)) to a degree
93 requiring substantial renovation or cleazan . f The District consists of 4 parcels, and all 4 are
94 "occupied" within the meaning of the T i{ncrement Act. There are 3 buildings in the district,
95 2 of which (constituting 66.66%) are s cturally substandard to a degree requiring renovation
96 or cleazance. The buildings are shuc ally substandard because they contain defects in
97 stnxctural elements or a comb'v
9s and venfilation, fire protection
99 partitions, or similar factors, w
l00 justify substantial renovation
lol than 50% of the buildings w,a�
ioz and not in compliance �
103 compliance at a cost of
io4 size and type on the s��
xio of deficiencies in essential utiliries and facilities, light
i uding adequate egress, layout and condition of interior
h defects or deficiencies are of sufficient total significance to
clearance, specifically defects in structural elements. More
i the District have been found to be structurally substandard
icable building codes, and could not be brought into such
than 15% of the cost of conshucting new shuctures of the same
sites, respectively.
105 The supporting facfs for these determinations aze on file with the staff of the Authority and include but
lob are not limited to the report dated December 4, 2�01 prepazed by The Leonazd Pazker Architects.
107 2.03 The City Council hereby makes the following fmdings:
l08 (a) The City Council fiudier fmds that the proposed development, in the opinion of the
109 City Council, would not occur solely through private investment within the reasonably foreseeable
110 future and, therefore, the use of t� increment fmancing is deemed necessary. The specific basis for
I11 such fmding being:
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113
114
The costs of the development, including the costs of acquisition and cleazance of the Od � a�7
development site, exceed the amounts that a private developer could obtain through
private finaucing.
115 (b) The City Council further finds that the University and Dale Tas Increment Financing
116 Plan conforms to The general plan far the development or redevelopment of the City as a whole. The
117 specific basis for such finding being:
118 The University and Dale Tas Increment Financing Plan will generally
119 serve to implement policies adopted in the City's comprehensive plan.
120 development will result in a higher intensity, xnised use development'.
]21 has been identified as a central transit corridor. /
.�.
azea that
122 (c) The City Council fiurther finds that the University and D Tax Increment Financing
123 Plan will afford maximum opportunity consistent with the sound nee of the City as a whole for the
124 development of the University and Dale Tax Increment District by vate enterprise. The specific
125 basis for such fmding being:
126
127
128
129
130
131
132
133
134
The proposed development to occur within the Unive ' and Da1e Tax Increment
District is mixed use commercial, cultural and hou '. The development will result in
a higher intensity mixed use development and '' crease the tasable market
valuation of the City and provide needed co r al, cultural and housing facilities in
a central transit area.
(d) Far purposes of compliance with i esota Statutes, Section 469.175, Subdivision
3(2), the City Council hereby fmds that the in ea ed mazket value of the property to be developed
within the University and Dale Taac Increme strict that could reasonably be expected to occur
without the use of tax increment financing 's , which is less than the market value estimated to
135 result from the proposed development
136 projected tax increments for the maYir
137 (i.e., $6,209,459). In making these fi
13s underdeveloped for many years and
139 Thus, the use of tax increment fi cj�
14o and the County, and the tax incre g�it
la1 therefrom.
142 2.04 The provisions
143 the University and Da1e Tas I�
d44 Section 3. Creation
las therefor.
)00,000) after subtracting the present value of the
on of the University and Dale Tax Increment District
iiylgs, the City Council has noted that the property has been
�iild likely remain so if tax increment financing is not available.
�g will be a positive net gain to the City, the School District,
assistance does not exceed the benefit which will be derived
2 are hereby incorporated by reference into and made a part of
Financing Plan.
and Da1e Tax Increment District and the Tax Increment Financing Plan
146 3.01 The creationpf University and Dale Tax Increment District is hereby approved and the T�
147 Increment Financing Planthereforis hereby adopted.
148 3.02 The stafF of the City, the staff of the Authority and the City's and Authority's advisors and
149 legal counsel aze authorized and directed to proceed with the implementation of the University and Dale Tas
150 Increment District and the Tax Increment Financing Plan therefore and for this purQose to negotiate, draft,
151 prepare and present to the Boazd of Commissioners of the Authority for its consideration a11 further plans,
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152 resolutions, docuxnents and contracts necessary for tYus purpose.
153
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