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02-572OR(GINAL council File # b��..— S�e�. Resolution # Presented By Referred To Green Sheet # � � 5 RESOLUTION CITY OF SAINT PAUL, MINNESOTA , 39 Committee: Date RESOLUTION APPROVING THE AMENDMENT OF THE 3 NORTH QUADRANT REDEVELOPMENTPLAN 4 AND THE ESTABLISHMENT OF THE STRAUS BUILDING TAX INCREMENT 5 FINANCING DISTRICT AND 6 APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR 9 WHEREAS, the City Council of the City of Saint Paul (the "Council") has the statutory responsibility 10 under Minnesota Statutes, Section 469.028, to approve redevelopment plans and projects of the Housing and 11 Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), after public hearing thereon; and 12 WIlEREAS, Minnesota Statutes, Section 469.175 requires that before a county auditor may certify a 13 taac increment financing district created under Minnesota Statutes, Section 469.174 to 469.1791 (the "Tax 14 Increment Act") the governing body of the municipality must approve the tax increment financing plan after a 15 public hearing thereon; and 16 WHEREAS, on June 23, 1999, the IIRA established the North Quadrant Redevelopment Project Area 17 (the "Redevelopment Project Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan"); 18 and 19 WHEREAS, the HRA proposes to enlarge the North Quadrant Redevelopment Project Area and has 20 submitted to the Council an amendment to the Redevelopment Plan; and 21 WHEREAS, said Redevelopment Plan, as amended, contains an identification of need and statement of 22 objectives and program of the HRA for carrying out of a redevelopment project, including property to be 23 acquired, public improvements to be provided, development and redevelopment to occur, and sources of 24 revenue to pay redevelopment costs of the Project; and 25 WHEREAS, the Saint Paul Planning Commission has reviewed the said Redevelopment Plan, as 26 amended, and approved the same as being in conformity with the Saint Paul Comprehensive Plan and the 27 general plan for the development and redevelopment of the City as a whole; and 1417518v1 Page 1 of 5 ORIGINAL oz-s�a- 1 WIIEREAS, the T� has asked the Council to approve the creation, within the Project Area, of a Tax 2 Increment Financing District as a housing tax increment fmancing district under Minnesota Statutes, Section 3 469174, Subdivision 10 (the "Tas Increment Financing District"), and the adoption of a Tas Increment 4 Financing Plan therefor, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 5 469.179 (the "Tax Increment AcY'); and 6 WHEREAS, the I3RA has performed ail actions required by law to be performed prior to the creation 7 of the T� Increment Financing District and adoption of the T� Increment Plan therefor, including, but not 8 limited to, notification of the Ramsey County Commissioner representing the azea of the County in which the 9 Tax Increment Financing District is located, and delivering a copy of the Tas Increment Financing Plan to 10 Ramsey County and Independent School Distdct Number 625, which have taxing jurisdiction ovex the 11 properiy to be included in the Tas Increment District; and 12 WHEREAS, on this date, the City Council conducted a public hearing on the amendment of the 13 Redevelopment Plan and the adoption of the Tax Increment Financing Plan, after published notice thereof; 14 and 15 WHEREAS, at said public hearing the City Council heard testimony from all interested parties on the 16 Redevelopment Plan and Tax Increment Financing Plan; and 17 WHEREAS, the City Council has considered the findings and determinations of the Saint Paul 18 Planning Commission and the FIRA respecting the Project, Redevelopment Plan, Taa� Increment Financing 19 District and Tax Increment Financing Plan, together with the documentation submitted in support of the same 20 and has taken into account the information and knowledge gained in heazings upon and during consideration 21 of other matters relating to the developments proposed for the Project. 22 Section 1. Approval of Amendment to Redevelopment Plan. 23 1.01 It is hereby found and determined that the undertakings and site of the Project, as described in 24 the Redevelopment Plan, as amended, constitutes a"housing project" within the meaning of Minnesota 25 Statutes, Section 469.002, Subdivision 14. It is hereby found and determined that the land in the Project Area 26 would not be made available for, nor would redevelopment be financially feasible without the public 27 improvements and the financial assistance proposed for the Project. It is hereby found and determined that 28 the Redevelopment Plan, as amended, will afford maximum opportunity, consistent with the sound needs of 29 the locality as a whole, for the redevelopment of such area by private enterprise. It is hereby found and 30 determined that the Redevelopment Plan, as amended, conforms to the Saint Paul Comprehensive Plan and 31 the general plan for the development of the locality as a whole. 32 1.02 The Amendment to Redevelopment Plan is hereby approved as in the public interest and as 33 necessary in order to carry out the development and redevelopment of the Project Area in accordance with the 34 objectives and purposes in said Redevelopment Plan provided thereby to eliminate the conditions identified in 35 said Redevelopment Plan and accomplish the provision of public improvements and private developments 36 contemplated by said Redevelopment Plan in the furtherance of the general welfare of the citizens of Saint 37 Paul. 38 Section 2. Findings for the Creation of the Straus Building Tas Increment Financing District and CARLSOAP\STRAUSS\STRAUS CITY RESOLUTION Page 2 of 5 ; uK��ivi�L Adoption of a Tas Tncrement Financing Plan therefor. oa-s��- 2 2.01 The City Council hereby finds that the creation of the Straus Building Tas Increment 3 Financing District and adoption of the Tas Increment Plan therefor, are intended and, in the judgment of the 4 City Council, its effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus 5 for the redevelopment of blighted structures and the constnxction of rental housing facilifies, and will 6 otherwise promote certain public purposes and accomplish certain objectives as specified in the 7 Redevelopment Plan and T� Increment Financing Plan. `0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 "Housing district" means a type of tax increment financing district which consists of a project or a portion of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similaz present or fixture federal, state or municipal legislation or the regulations promulgated under any of those acts. A project does not qualify under this subdivision if the fair market value of the improvements which are constructed for commercial uses or for uses other than low and moderate income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The fair market value of the improvements may be determined using the cost of construction, capitalized income or other appropriate method of estimating market value. Twenty percent of the housing units the Tax Increment District will be occupied by individuals whose family income is equal to or less than 50 percent of area median gross income. Family income means the median gross income far the City as determined under section 42 of the Internal Revenue Code of 1986, as amended. 27 The fair market value of the improvements which are constructed in the Tax Increment 28 District for commercial uses or for uses other than owner-occupied and rental mixed-income 29 housing will not consist of more than 20 percent of the total fair market value of the planned 30 31 32 33 2.03 34 35 36 37 2.02 The City Council hereby finds that Tax Increment Financing District qualifies as a"housing district" within the meaning of the Tax Increment Act for the following reasons: improvements in the development plan or agreement. The fair market value of the improvements will be determined using the cost of construction, capitalized income, or other appropriate method of estimating market value. The City Council hereby makes the following additional findings: (a} The City Council further finds that the proposed development, in the opinion of the City Council, would not occur solely through private investment within the reasonably fareseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: CARI,SOAP\STRAUSS\STRAUS CITY RESOLUTION Page 3 of 5 2 0 7 �� i � i ��IHL oa-S�a- The pazcels on which the development will occur would not be developed in the reasonably foreseeable future because they are occupied by blighted structures. (b) The City Council further finds that the Tas Increment Financing Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: The Tax Increment Financing Plan will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The housing development contemplated is in accordance with the existing zoning for the property. 9 (c) The City Council fiutlier fmds that the Tax Increment Financing Plan will afford 10 maximum opportunity consistent with the sound needs of the City as a whole for the development of ll the Tax Increment Financing District by private enterprise. The specific basis for such finding being: 12 13 14 15 16 17 18 19 20 21 22 23 24 The proposed development to occur within the Tax Increment District is housing. The development will increase needed affordable housing in the City and will increase the market valuation of the City. (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2), the City Council hereby finds that the increased market value of the property to be developed within the Tax Increment District that could reasonably be expected to occur without the use of taa� increment financing is $0, which is less than the mazket value estimated to result from the proposed development (i.e., $2,774,500) after subtracting the present value of the projected tax increments for the maximum duration of the Tas Increment Financing District (i.e., $678,296). In making these findings, the City Council has noted that the property has not been redeveloped for many years and would likely remain so if tax increment financing is not available. Thus, the use of tax increment financing will be a positive net gain to the City, the School District, and the County, and the tax increment assistance does not exceed the benefit which will be derived therefrom. 25 2.04 The provisions of this Section 2 aze hereby incorporated by reference into and made a part of 26 the Tax Increment Financing Plan. 27 28 Section 3. Creation of the Straus Building Tax Increment Financing District and Approval of the Tax Increment Financing Plan therefor. 29 3.01 The creation of the Straus Building Tax Increment Financing District and the Tax Increment 30 Financing Plantherefor are hereby approved. 31 3.02 The staff of the HRA and the HRA's advisors and legal counsel are authorized and directed to 32 proceed with the implementation of the TaY Increment Financing District and the Tax Increment Financing 33 Plan and for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of the HRA 34 for its consideration all fiirther plans, resolutions, documents and contracts necessary for this purpose. CARLSOAP\STRAUSS�STRAUS CITY AESOLUTION Page 4 of 5 ��,IGiN�L Adopted by Council: Date �C�t ` ��'a-� Adoption Certified by Council Secretary Approved by May � by Mayor for Submission to Council �/�I/, / _ � i� / ' oz-s� a-- Requested by Department of: Plannin4 � Economic Develooment � Approved by Financial rvic Fornt Approved by City Attorne� / I � I rs� - �rG � �� . : .� � ��. CARLSOAP\STRAUSS\STRAUS CITY RESOLUTION Page 5 of 5 DEPARTMENT/OSRICE/COUNCIL' DATE INTTIATED GREEN SHEET No.• 202154 O�,.S�� PED June 13, 2002 ' CONTACT PERSON & PHONE: L/DATE IIV177AWDATE Allen Carlson, 266-6616 � z Darniz�T Duz czTY cLafuc MUST BE ON COUNCII. AGENDA BY (DATE) �S�ER 3 CITY ATTORNEY McCa(1 6 COUNCIL RESEARCH June 26, 2002 FOR � ROUTING 4 FINANCIAL SERV DIR. _ FINANCIAL SERV/ACCTG Public Hearing ORDER — 5 MAYOA(ORASST.) 1 TEAMLEADE TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTED: Public Hearing: Sign resolurion approving the amendment of the North Quadrant Redevelopment Plan and the establishment of the Straus Building Tas Increment Financing District and Approving a Tas Increment Financing Plan therefor. RECObIMENDAITONS: Apptove (A) or Reject (R) PERSONAL SERVICE CONTRACTS M[JST ANSWER 1'f;E FOLLOWING QUESTIONS: PLANNING COMbIISION 1. Has this pecsonlfimi ever wocked undec a wnhact for this deQarlment? CIB CObIMiTTEE Yes No CIVIL SERVICE COMMISSION 2 Has this person/firtn ever been a ciry employee? Yes No 3. Does this pe=son/fimi possess a slall not normally possessed by any cu�rent ciTy employee� Yes No Explain all yes answers on separate sheet and attach to green sheet INTTIATING PROBLEM,ISSUE, OPPORTi➢VITY (Who, What, When, Where, Why). Shennan & Associates has acquired the 5- story, vacant, historic Straus Building located at 350 Sibley Sueet across from Meazs Pazk and intends to convert the building into 49 units of rental housing and 6,000 sq. ft. of fust floor commercial space. 10 units (20%) of the units will be affordable to households at or below 30% of AMI and 24 units (49°/a) will affordable to households at or below 50% of AMI. `But for" the assistance of tas increment fmancing the project is not fmancially viable since tas increment from the project will provide revenue to support an additional $535,000 of additional first mortgage fmancing for the $10,300,000 development. City Council is being asked to conduct a public hearing on the expansion of the North Quadrant Redevelopment Plan Project Area and establishment of a new tas increment disuict to possibly assist in the fmancing of the project. Approval6f the establishment of the TIF district does not bind the City to fmance the project. The HRA will also consider approval establishment of the TIF district on Juna 6.��,�3F ADVANPAGESIFAPPROVED. 1. A vacant blighted building will be put back into service. J��l L'� 2. A historic building will restored. 3. 49 units of housing will be created of which 69% will be affordable thereby contributing to the Mayor's and City CounciPs goal of creating 5,000 units of housing over the next four yeazs. ` niSanv.artTacES � arrxovEn Partial property tases will be forgone to help fmance ffie project; however the new taaces would not exist "but for" the development of the project. n[sanvaN'rncES iF 1vo r arrxovEn Project will not go forwazd and the building will continue to be vacant and a hazard to the safery of ffie public. The Fire Mazshall has an ouCStanding condemnation order on the building. TOTAL AMOiJNT OP'I'RANSACTION: $1,447,696 of tar mcrement revenue COST/REVENUE BUDGETED: FONDING SOUACE: AC'CNITY NUMBER: FINANCIAL INFORMATION: (EXPLAII� Staff will present to the HRA Boazd arnendment to HRA yeaz 2002 budget to reflect budgeting for the t� incremen[ district K\Shared�Ped\CARLSOAriS'fltAUSS\Stra�s vfCC Crteenshcet fmm v+pd � oa - s��- AMENDMENT OF REDEVELOPMENT PLAN FOR THE NORTH QUADRANT REDEVELOPMENT PROJECT AREA ORIGINAL APPROVAL BY THE SAINT PAUL PLANNING CONIMISSION: JiJiVE 11, 1999 ORIGINAL APPROVAL BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SA1NT PAUL: JUNE 23, 1999 AMENDMENT APPROVAL: JiTNE 14, 2002 BY THE SAINT PAUL PLANNING COMNIISSION AMENDMENT APPROVAL: JLJNE 26, 2002 BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL AND THE CITY OF SAINT PAUL This document was drafted by: BRIGGS AND MORGAN (nRVID) Professional Association 2200 West First National Bank Building Saint Paul, Minnesota 55102 1410295v1 oa-s�a� AMENDMENT OF REDEVELOPMENT PLAN FOR THE NORTH QUADRANT REDEVELOPMENT PROJECT AREA SECTION 1. BACKGROUND The Housing and Redevelopment Authority of the City of Saint Paul, Miunesota (the "Authority") has heretofore established the North Quadrant Redevelopment Project Area (the "Redevelopment Project Area") and adopted a Redevelopment Plan therefor (the "Redevelopment Plan") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "Housing and Redevelopment Authority AcY'). Pursuant to Minnesota Statutes, Section 469.174 to 469.1791 (the "Tas Increment Act"), the Authority has heretofore established within the Redevelopment Project Area, Tas Increment Financing District No. 1(North Quadrant) in connection with a mixed income rental and owner occupied housing project. In 2002, the Authoriry received a proposal to redevelop a building located in the vicinity of the Redevelopment Project Area lmown as the Straus Building into a low and moderate income rental development (the "Straus ProjecY'). The proposal for the Straus Building requires the enlargement of the Redevelopment Project Area and the creation of a sepazate tas increment fmancing district to finance certain public redevelopment costs of the Straus Project. SECTION 2. GENERAL DESCRIPTION OF AMENDMENT This Amendment enlazges the Redevelopment Project Area to include additional property in the Redevelopment Project Area. SECTION 3. AMENDMENT Section 3.1 Inclusion of Property from the Redevelopment Project Area. The description of the Redevelopment Project Area is hereby amended to include the following property: Lots 2 through 5, Block 1, Auditor's Subdivision No. 32, St. Paul, MN, subject to an easement for building support purposes in the wall on the northwesterly 2 feet of Lots 10 and 11 of said Block 1 and the easement in Book M of Miscellaneous Page 383 which provides a connection by alley ways of Sth Street and Sibley Street benefiting the adjoining landowners. Section 3.2 Effect of Amendments. Except as herein amended and supplemented, the Redevelopment Plan remains in full force and effect. 1410295v1 o�-��.� TAX INCREMENT FINANCING PLAN for STRAUS BUII,DING TAX INCREMENT FINANCING DISTRICT (a housing district) HOUSING AND REDEVELOPMENT AUTHORITY OF TI�IE CITY OF SAINT PAUL RAMSEY COUNTY STATE OF MINNESOTA Adopted: June 26, 2002 This document was drafted by: BRIGGS AND MORGAN, (IvIl�ID) Professional Association 2200 First National Bank Bldg. St. Paul, MN 55101 (651)223-6625 1408976v1 oz-s�� TABLE OF CONTENTS (for reference purposes only) TAX INCREMENT FINANCING PLAN FOR THE STRAUS BUII.,DING TAX INCREMENT FINANCING DISTRICT SECTION DEFINITIONS .................................................................................................1 SECTION 2. TAX INCREMENT FINANCING PLAN FOR THE SRAUS BUII,DING TAX INCREMENT FINANCING DISTRICT ........................... 2 Subsection FORWARB .......................................................................................... 2 Subsection 2.2 Subsection 2.3 Subsection 2.4 Subsection 2.5 Subsection 2.6 Subsection 2.7 Subsection 2.8 Subsection 2.9 Subsection 2.10 Subsection 2.11 Subsection 2.12 Subsection 2.13 Subsection 2.14 Subsection 2.15 Subsection 2.16 Subsection 2.17 Subsection 2.18 Subsectian 2.19 Subsection 2.20 Subsection 2.21 Subsection 2.22 STATUTORY AUTHORITY ............................................................. 2 STATEMENT OF OBJECTIVES ....................................................... 2 REDEVELOPMENT PLAN OVERVIEW ......................................... 2 PARCEL TO BE INCLUDED IN THE TAX INCREMENT FINANCING DISTRICT ................................................................ PARCEL IN ACQUISITION . ........................................................ DEVELOPMENT ACTIVITY IN THE TAX INCREMENT FINANCING DISTRICT FOR WHICH CONTRACTS HAVE BEEN SIGNED .............................................................................. OTE�R SPECIFIC DEVELOPMENT EXPECTED TO OCCUR WITHIN REDEVELOPMENT PROJECT AREA.......... ESTIMATED COST OF PROJECT AND TAX INCREMENT FINANCING PLAN BUDGET ...................................................... ESTIMATED AMOLTNT OF BONDED INDEBTEDNESS......... SOURCES OF REVENUE ............................................................. Page ..... 3 ..... 3 ..... 3 .... 3 � ESTIMATED CAPTURED TAX CAPACITY AND ESTIMATE OF TAX INCREMENT .................................................. 4 TYPE OF TAX INCREMENT FINANCING DISTRICT .................. 5 DURATION OF THE TAX INCREMENT FINANCING DISTRICT ............................................................................................ 5 ESTIMATED IMPACT ON OTHER TAXING NRISDICTIONS ................................................................................ 6 MODIFICATIONS TO THE TAX INCREMENT FINANCING DISTRICT ..................................................................... 6 ADMINISTRATIVE EXPENSES ....................................................... 7 LIMITATION OF INCREMENT ........................................................ 7 USE OF TAX INCREMENT .............................................................. 8 NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS .......... 9 EXCESS TAX INCREMENTS ........................................................... 9 REQUIIZEMENTS FOR AGREEMENTS WITH THE DEVELOPER ....................................................................................10 Subsection 2.23 ASSESSMENT AGREEMENTS ............................................ Subsection 2.24 ADMINISTRATION OF TAX INCREMENT FINANCING DISTRICT ................................................................................ ...10 ��1; 1408476v1 � �-s ��- Subsecfion 2.25 FINANCIAL REPORTING REQiJIREMENTS ...............................10 Subsection 2.26 OTHER LIMTI'ATIONS ON 1'HE USE OF TAX INCREMENT....................................................................................13 Subsection 2.27 COLTNTY ROAD COSTS .................................................................14 Subsection 2.28 ECONOMIC DEVELOPMENT AND 70B CREATION .................14 EXHIBTT A- Tax Increment Cash Flow EXHIBIT B- Tas Increment Financing Plan Budget EXfIIBIT C- Estimated Impact on Other Taxing Jurisdictions 1408976vt I1 0 �.-S`� �- SECTION 1. DEFINITIONS The terms defined below shall, for purposes of the Redevelopment Plan and Tax Increment Financing Plan have the meaning herein specified, unless the context otherwise specifically requires: "Authority" means the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota. "Captured Tax Capacity" means the amount by which the current net tas capacity of the tas increment financing district exceeds the original net tax capacity, including the value of property normally taxable as personal property by reason of its locarion on or over property owned by a tax-exempt entity. °City" means the City of Saint Paul, Minnesota. "Comprehensive Plan" means the City's Comprehensive Plan which contains the objectives, policies, standazds and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City. "County" means Ramsey County, Minnesota. "Goveming Body" means the duly appointed City Council of the City. "Housing AcY' means Minnesota Statutes, Section 469.001 to 469.047. "HI2A" means the Aousing and Redevelopment Authority of the City of Saint Paul, Minnesota, a body corporate and politic; "Project Area" means the North Quadrant Redevelopment Project Area depicted on Exhibit A attached hereto and described in the Redevelopment Plan. "Redevelopment Plan" means the North Quadrant Redevelopment Plan. "State" means the State of Minnesota. °Tax Increment Financing Act" means Minnesota Statutes, Section 469.174 through 469.179. "Tax Increment Financing District" means the Straus Building Tax Increment Financing District described in the Tax Increment Financing Plan and depicted on Exhibit A. "Tas Increment Financing Plan" means the Tas Increment Financing Plan for the Straus Building Ta�c Increment Financing District. 1408976v1 o a.-S�1 �- SECTION 2. TAX INCREMENT F'INANCING PLAN FOR THE SRAUS BUII.DING TAX INCREMENT FINANCING DISTRICT Subsection 2.1 FORWARD The Housing and Redevelopment Authority of the City of Saint Paul (the "HRA"), and its staff and consultants have prepared the foliowing information for the establishment of Straus Building Tax Increment Financing District (°Tax Increment Financing District"), a housing taac increment financing district, located in the North Quadrant Redevelopment Project Area. Subsection 2.2 STA"I'UTORY ALJTHORTTY Within the City, there exist azeas where pubiic involvement is necessary to cause development to occur. To this end, the HRA has certain statutory powers pursuant to Minnesota Statutes, Section 469.001 to 469.047 (the "Housing AcY') and Sections 469.174 through 469.179 (the "Ta2c Increment Financing AcY'), ta assist in fmancing public costs related to a project. Subsection 23 STATEMENT OF OBJECTIVES The Tax Increment Financing District consists of one pazcel of land located at 350 Sibley Street and adjacent and internal rights-of-way. The Tax Increment Financing District is created to facilitate the development of a rental housing facility containing approximately 49 units. The tax increment financing plan is expected to achieve many of the objectives outlined in the North Quadrant Redevelopment Plan. The activities contemplatad in the Redevelopment Plan and this Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anricipated to occur over the life of the Tax Increment Financing District. Subsection 2.4 REDEVELOPMENT PLAN OVERVIEW. Property to be Acquired - Selected property located within the Tax Increment Financing District may be acquired by the HRA. 2. Relocation - if necessary, complete relocation services aze availabie pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to a project and completion of the necessary legal requirements, the HI2A may sell or assist a developer with the acquisition cost of selected properties within the Tas Increment Financing District, or may lease land or facilities to a developer. 4. The HRA may perform or provide financing for some or all necessary environmental removal or remediation, acquisition, construction, relocation, landscaping, site work, demolition, and required streets and ufilities within the Taac Increment Financing District. iaoam6�t 2 61 S�� Subsection 2.5 PARCEL TO BE INCLUDED IN TFiE TAX INCREMENT FINANCING DISTRICT. The foilowing pazcel located in the City of Saint Paul, Ramsey County, Minnesota aze included in the Tas Increment Financing District: PIN NO. 31-29-22-44-0074 06-28-22-11-0003 Subsection 2.6 PARCEL IN ACQUISTfION. The HRA may finance all or a part of the costs of acquisition of the parcels identified in Section 3.5 of this Tas Increment Financing Plan. The follawing are conditions under which properties not designated to be acquued may be acquired at a future date: The HI2A may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the tax increment financing pian; and 2. Such acquisitions will be undertaken oniy when there is assurance of funding to finance the acquisition and related costs. Subsection 2.7 DEVELOPMENT ACTIVITY IN THE TAX INCREMENT FINANCING DISTRICT FOR WHICH CONTRACTS HAVE BEEN SIGNED No Development Agreements have been entered into at the tune this Tax Increment Financing Plan is approved. However, the HRA anticipates entering into a Development Agreement with an entity to be formed by George Sherman (the "Developer") with respect to the remodeling of an existing building to provide approximately 49 units of rental housing (the "ProjeeY'). The Project is expected to be fully constructed in 2003, and be 100% assessed on the tax roils as of January 2, 2004, for taxes payable in 2005. The Proj ect is expected to have a market value of $3,300,000 upon complerion. At the time this document was prepared there were no signed conshuction contracts with respect to the construcrion of the Project. Subsection 2.8 OTFiER SPECIFIC DEVELOPMENT EXPECTED TO OCCUR WITHIN REDEVELOPMENT PROJECT ARBA. The HItA does not currently expect any other development to occur within the Tas Increment Financing District. 1408976v1 Q�-Sr1Y Subsection 2.9 ESTIMATED COST OF PROJECT AND TAX INCREMENT FINANCING PLAN BUDGET. The HRA has determined that it will be necessary to provide assistance for certain public costs of the Project. To facilitate the development of the Tax Increment Financing District, this Plan authorizes the use of tax increment financing to pay for the wst of certain eligible expenses ofthe Project. The estimate ofpublic costs and uses of funds associated with the Tax Increment Financing District is outlined on the table attached hereto as Exhibit A. Estimated costs associated with the Taac Increment Financing District are subject to change. The cost of all activities to be considered for taac increment financing will not exceed, without formal modification, the budget set forth above. The dollaz amounts for specific line items in the budget may be adjusted between the line items by resolution of the HRA without a public hearing as long as the total expenditures aze not increased. Subsection 2.10 ESTIMATED AMOiJNT OF BONDED INDEBTEDNESS. The HItA reserves the right to issue bonded indebtedness in the principal amount not to exceed $2,000,000. Any expendihues not financed by bonds will be paid for from tax increments on a pay-as-you-go basis. Subsection 2.11 SOURCES OF REVENLJE. The costs outlined in Section 3.9 above under the Estimated Cost of Project will be fmanced through the annual collection of tax increments as described below. Subsection 2.12 ESTIIvfATBD GAPTLIRED TAX CAPACITY AND ESTIMATE OF TAX INCREMENT. The current tax capacity of the Taac Increment Financing District as of January 2, 2001, is $6,569. The estimated Captured Taac Capacity of the Taac Increment Financing District upon completion of the Project is estimated to be $41,250 as of January 2, 2004. The HRA elects to retain ali of the captured tax capacity to finance the costs of the Project. E�ibit B shows the various information and assumptions used in preparing the projected tax increment generated over the life of the Taac Increment Financing District. �aos��6�i 4 oz s�a-- Subsection 2.13 TYPE OF TAX INCREMENT FINANCING DISTRICT. The HRA, in determin;ng the need to create a tax increment financing dishict in accordance with the Tas Increment Financing Act, finds that the Taac Increment Financing District, is a housing district pursuant to Minnesota Statutes, Section 469.174, Subd. 11 as defined below: "Housing districY' means a type of tax increment financing district which consists of a project or a portion of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the Nationai Housing Act of 1959; the United States Housing Act of 1937, as amended•, Titie V of the Housing Act of 1949, as amended; and any other similaz present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. A project does not qualify under this subdivision if the fair market value of the improvements which are constructed for commercial uses or for uses other than low and moderate income housing consists of more than 20 percent of the total fair market value of the planned improvements in the development plan or agreement. The fair mazket value of the improvements may be determined using the cost of construction, capitalized income or other appropriate method of estimating market value. In meeting the statutory criteria described above, the HItA relies on the following facts and findings: The Project will consist of approximately 49 rental housing units and at least 20 percent of the units will be rented to individuais with family incomes not in excess of 50% of median income. The market value of improvements for other than low and moderate incoming housing or commercial property will be less than 20% of the total fair mazket value of the planned improvements. The Tax Increment Financing District qualifies as a housing district, in that it meets all of the criteria listed above. It is anticipated that 100% of the planned improvements in the Tax Increment Financing District will be for low and moderate income housing purposes. The above requirements apply for the duration of the Tax Increment Financing District. Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined above. The cost ofpublic unprovements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. Subsection 214 DURATION OF THE TAX INCREI�+IENT FINANCING DISTRICT. The duration of the Tax Increment Financing District will be 25 years from the receipt of the first tax increment. The date of receipt of the first tas increment is expected to be July of 1408976v] o � S� �- 2004. Attached as E�ibit B is a projected cash flow showing the estimated receipt of tax increments from ttie Taac Increment Financing District. Subsecrion 215 ESTIMAT`ED Il�ACT ON OTHER TAXING NRISDICTIONS. The estimated 'unpact of the Tax Increment Financing District on the other taxing jurisdictions assumes construction would have occurred without the creation of the Tas Increment Financing District. ff the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal unpact of the other taxing jurisdictions is $0, due to the fact that the construction would not have occurred without the assistance of the HRA, the estimated impact of the Tas Increment Financing District wouid be as set forth on Eachibit C if the "but For" test was not met. Subsecfion 2.16 MODIFICATIONS TO THE TAX II3CREMENT FINA23CING DISTRICT. In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any: reduction or enlazgement of the geographic area of Project Area or Taac Increment Financing District; increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the originai 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 talc capacity to be retained by the HRA; 4. increase in total estimated tax increment expenditures; or 5. designation of additional property to be acquired by the HRA; shall be approved upon the norice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of the Tax Increment Financing District may be reduced, but shall not be enlazged after five yeazs following the date of certification of the original net tas capacity by the county auditor. The requirements of this pazagraph do not apply if (1) the only modification is elimination of parcel(s) from the Proj ect Area or Tas Increment Financing District and (2)(a) the current net taac capacity of the parcel(s) eliminated from Tax Increment Financing District equals or exceeds the net tax capacity of those parcel(s) in the Tax Increment Financing District's original net tax capacity or (b) the HItA agrees that, notwithstanding Minnesota Statutes, Section 469. 177, Subd. i, the original net tas capacity will be reduced by no more than the current net tas capacity of the parcel(s) eliminated from the Taac Increment Financing District. The HRA must notify the County Auditor of any modification that reduces or enlarges the geographic area of the Tax Increment Financing District or Project Area. Modifications to 1408976v1 () O 1-S� �- the Taac Increment Financing District in the form of a budget modification or an expansion of the boundaries will be recorded in the Redevelopment Plan. Subsection 217 ADMINISTRATIVE EXPENSES. In accordance with Minnesota Statutes, Secrion 469.174, Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3, administrarive expenses means all 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; Z. 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. Administrarive expenses aiso include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tas increment financing plan or the total talc increment expenditures for the Redevelopment Project Area, whichever is less. Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with District No. 15. The county may require payment of those expenses by February 15 of the yeaz foliowing the year the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to the F3RA 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 ta�c increment financing information and the cost of examining and auditing authorities' use of tax increment financing. Subsection 2.18 LIMTTATION OF INCREMENT. Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no tax increment shall be paid to the HRA for the Tax Increment Financing District after three (3) yeazs from the date of certification of the original net tax Capacity value of the taxable property in the Taac Increment Financing District by the County Auditor unless within the three (3) year period: taoav�e�t 7 6�.-,�� a- (a) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in aid of a proj ect pursuant to any other law,_ except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 to 469.165, or (b) the HRA has acquired property within the Taac Increment Financing Dishict; or (c) 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 tercninated if sufficient funds have been irrevocabiy deposited in the debt service fund or other escrow account held in hust 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 yeazs from the date of certification oF the orignal net taac capacity of the taac increment financing district pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the pazcel in accordance with the tax increment financi�g plan, no additional tax increment may be taken from that pazcei and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority ar the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site prepazation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment fmancing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tas increment financing district. The county auditor must enforce the provisions of this subdivision. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconshuction or rebuilding of an existing street. Subsection 2.19 USE OF TAX INCREMENT The HRA hereby determines that it will use 100 percent of the captured net tax capacity of tasable property located in the Tax Increment Financing District for the following purposes: to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay the capital and administrarion costs of the Redevelopment Project pursuant to the Minnesota Statutes, Sections 469.001 to 469.047; 1408976v1 0 s-� �- 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in Minnesota Statutes, Secrion 469.174, Subd. 1 i; 5. to pay principal and interest on any loans, advances or other payments made to the HItA or for the benefit of the Project Area by the developer; 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guazanteeing the payment when due of principal and interest on taac increment bonds or bonds issued pursuant to the Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both; and 7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by Minnesota Statutes, Section 469.176, subd. 4. Revenues derived &om taac increment from a housing district must be used solely to finance the cost of housing projects as defined in Minnesota Statutes Section 469.174, subd. 11. The cost of public improvements directly related to the housing projects and the alIocated administrative expenses of the City may be included in the cost of a housing project. Subsecrion 2.20 NOTIFICATION OF PRIOR PLANNED IIvIPROVEMENTS. The HRA sha11, after due and diligent search, accompany its request for certification to the County Auditor or its notice of the Tax Increment Financing District enlazgement with a listing of all properties within the Tas Increment Financing District or area of eniargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Tax Increment Financing Plan by the City pursuant to Minnesota Statutes, Section 469.175, Subd. 3. The County Auditor shall increase the original taJC capacity of The Tas Increment Financing District by the value of the value of improvements for which a building permit was issued. Subsection 2.21 EXCESS TAX INCREMENTS Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any yeaz in which the ta�c increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Secrion 475. 61, Subd. 3, the HRA shali use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; or 1408976v1 � 0�-S.�y- 4. retum the excess to the County Auditor for redistribution to the respective taacing jurisdictions in proportion to their local taY rates. In addition, the HRA may, subject to the lunitafions set forth herein, choose to modify the Plan in order to finance additionai public costs in the Taac Increment Financing District or Redevelopment Project Area. Subsection 2.22 REOIJIREMENTS FOR AGREEMENTS WTI'H Tf� DEVELOPER. The HRA wiil 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 HRA to demonstrate the conformance of the development with city plans and ordinances. The HRA may also use the Agreements to address other issues related to the development. Pursuant to Minnesota Statutes, Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired the Ta�c Increment Financing District as set forth in the Pian shall at any time be owned by the HRA as a result of acquisition with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469. 178, without the HRA having, prior to acquisition in excess of 10 percent of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA should the development or redevelopment not be completed. Subsecfion 2.23 ASSESSMENT AGREEMENTS Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the F3RA may enter into an agreement in recordable form with the developer of property within the Tax Increment Financing District which establishes a minimum mazket value of the land and completed improvements for the duration of Tas Increment Financing District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements conshucted, review the market value previously 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 es6mate, the assessor may certify the minimum market value agreement. Subsection 2.24 ADMINISTRATION OF TAX INCREMENT FINANCING DISTRICT. Administration of the Tax Increment Financing District will be handled by tke Executive Director of the HRA. Subsection 2.25 FINANCIAL REPORTING REOUIREMEI�iTS. A. Filing with State Auditor, County Auditor, County Board, City and School Board: Pursuant to Minnesota Statutes, Secfion 469. 175, Subd. 5, the HRA must file an annual I408976vt 10 0�� !/ disclosure report for the Tax Increment Financing District. The report shall be filed with the County Boazd, County Auditor, School Boazd, City Council and the State Auditor on or before August 1 of each year. The report shall include the following informarion: 1. the amount and source of revenue in the taac increment account; 2. the amount and purpose of expenditures &om the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of the Taac Tncrement Financing District; 5. the captured net tax capacity retained by the HRA; 6. the captured net tax capacity shazed with other tasing districts; 7. the tazc increment received; and S. any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: Minnesota Statutes, Section 469. 175, Subd. 5 also provides that by August 15 of the next year an annual statement for the preceding year shall be published in a newspaper of general circulation in the City showing: i. the tax increment received and expended in that year, 2. the originai net tas capacity, 3. captured net tax capacity, 4. amount of outstanding bonded indebtedness, 5. the amount of the Tax Increment Financing District's increment paid to other governmental bodies, 6. the amount paid for administrative costs, 7. the sum of increments paid, directly or indirectiy, for activities and improvements located outside of the Tax Increment Financing District, and 8. any additional information the HRA deems necessary. C. State Auditor filing: Pursuant to Minnesota Statutes, Section 469.175, Subd 6, the HItA must annually submit to the State Auditor, on or before August 1, a financial report which shall: 1. provide for fuil disclosure of the sources and uses of the public funds in the Taac Increment Financing District; 2. pernut comparison and reconciliation with the HRA's accounts and financial reports; 3. permit auditing of the funds expended on behalf of the Tax Increment Financing District or that is funded in part or whole through the use of a development account funded with tas increments from other tas increment dishicts or with public money; and 4. be consistent with generaily accepted accounring principles. The financial report must also include the following: the original net tax capacity of the Tax Increment Financing District; 1408976v1 1 1 W--3��- 2. the caphued net tax capacity of the Tax Increment Financing District, including the amount of any captured net tas capacity shazed with other taxing distdcts; 3. the amount budgeted under the Plan, and the actuai amount expended for, at least, the following categories (for the reporting period and for the duration of the Tazc Increment Financing District): (a) acquisition of land and buildings tt�rough condemnarion or purchase; (b) site improvements or preparafion costs; (c) installation ofpublic utilities, pazking facilities, streets, roads, sidewalks, oz other similaz public improvements; (d) administrarive costs, including the aliocated cost of ffie city; (e) public pazk facilities, facilities for social, recreational, or conference purposes, or other similaz public improvements; and 4. the total costs of the property to the HRA and the price paid the developers (for properties sold to developers); 5. the amount of increments rebated or paid to developers or property owners for privately fmanced improvements or other qualifying costs, other than those reported under clause (3 ), that were issued on behalf of private entities for facilities located in the Tax Increment Financing District. D. State Auditor filing for all Tas Increment Financing Districts: Pursuant to Minnesota Statutes, Section 469. 175, Subd. 6a, the City must also annually report to the State Auditor before or on August 1 of each yeaz the foliowing amounts for the en6re City: 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar yeaz; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on: (i) general obligation tax increment financing bonds and (ii) other tax increment financing bonds; and for each tax increment financing district within the City: 1. the type of tas increment financing district; 2. the date on which the district is required to be decertified; 3. the amount of any payments and the value of in-kind benefits, such as physical improvements and the used of building space, that are financed with revenues derived from increments and aze provided to another governmental unit (other than the municipality) during the preceding calendaz year; 4. the tax increment revenues for taxes payable in the current calendar year; 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of each district; 6. any additional information that the State Auditor may require. Copies of this report must also be provided to the county and school district boazds. taosme�i 12 0�.-S��- Subsecfion 2.26 OTHER LIMITATIONS ON THE USE OF TAX INCREMENT. General Limitations. All revenue derived from tax increment shall be used in accardance with the Tas Increment Financing Plan. 'I'he revenues shall be used to finance, or otherwise pay the capital and administration costs of the Project Area pursuant to the Minnesota Statutes, Sections 469.001 to 469.047; These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the acquisirion, construction, renovation, operation or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of govemment or the state or federal govemment or for a commons azea used as a public path, or a facility used for social recreation or conference purposes. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovarion of a pazking structure, or a privately owned facility for conference purposes. 2. Tax Increment PoolinQ and Five Year Limitation on Commitment of Tax Increments. At least 80% of the tax increments from the Tax Increment Financing District must be expended on acfivities within the Ta1c Increment Financing District or to pay for bonds used to finance the estimated public costs of the Tax Increment Financing District. No more than 20% of the tax increments may be spent on costs outside of the Tax Increment Financing Distdct but within the boundaries of the Proj ect Area, except for qualified low income buildings under Section 42 of the Internal Revenue Code or to pay debt service on credit enhanced bonds; provided that a housing project as defined in Section 469.174, Subd. 11 is an activity within the Tax Increment Financing District. All administrative expenses aze considered to haue been spent outside of the Tax Increment Financing District. Talc increments are considered to have been spent within the Tax Increment Financing District if such amounts are: A. actually paid to a third party for activities performed within the Tax Increment Financing District within five years after certification of the Tax Increment Financing District; B. used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund; C. used to make payments or reimbursements to a third party under binging contracts for activities performed within the Tas Increment Financing District, which were entered into within five years after certification of the district; or iaos9�a�� 13 0 a- S ��-- D. used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth yeaz following certificarion of the Tas Increment Financing District, at least 80% of the taac increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the Tax Increment Financing District must be decertified. The HRA does not anticipate that tas increments wili be spent outside the Taac Lncrement Financing District (except for allowable admuustrative expenses and for qualified low income buildings as defined in Section 42 of the Internal Revenue Code of 1986, as amended, as pernutted by Minnesota Statutes, sEction 469.1763, subdivision 2(d)). The HRA does reserve the right to ailow for tas increment pooling from the Tax Increment Financing District in the future. Subsection 2.27 COLTNTY 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 improvements if, the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring constnxction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. Tn the opinion of the HRA and consultants, the proposed development outlined in this Tax Increment Financing Plan wiil have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the HRA within thirty days of receipt of this Plan. Subsection 2.28 ECONOMIC DEVELOPMENT AND JOB CREATION The HRA is providing tax increment financing for housing and therefore, the provisions of Minnesota Statute, Sections 116J.993 and 116J.994 (which states that a recipient of a business subsidy must create a net increase in jobs and meet wage level goals within two years of receiving assistance) are not appiicable. 1408976vt 14 EXHIBTT A Name of District: Type of District: Duration of District: TAX INCREMENT FINANCING PLAN BUDGET Straus Park Housing 25 years SOURCES OF FUNDS Tax Increment Revenue Interest of Invested Funds Bond Proceeds Loan Proceeds Real Estate Sales Special Assessments RentlLease Revenue Grants (Specify): City Other Sources (Specify): Equity Transfers In (Specify): Total Sources of Funds USES OF FUNDS Rehabilitation of Existing Building Interest Reduction Payments Bond Principal Payments Bond Interest Payments Loan Principai Payments L,oan/Note Tnterest Payments Administrative Costs Poliution Abatement Bond Issuance Costs Capitalized Interest Contingency Other Uses (Specify): Tax Credit Rental Housing Transfers In (Specify): Total Uses of Funds (I> Net of State Auditor Deduction AMOUNT $1,44'7,696� $1,447,696 AMOUNT $600,000 702,925 144,771 $1,447,696 a } -s��- 1408976v1 A-1 ��.:� : : Assum tions Re ort City of Saint Paul, Minnesota Tax Increment Financing (HOUSing) District Straus Housing Project Scenario A (Mauimum TIF Duretion) Type of Tax Increment Financing District Maximum Duretion of TIF District Certifica5on Request Da1e Decertification Date Base Estimated Market Value Times: First $0 Excess Original Net Tau Capaciry Base Estimated Market Value Increase in Estimated Market Value Total Estimated Market Value Times: First $0 Excess Total Net Tax Capacity 125% 125% Housing 25 years from tst increment 06/28/02 72/01/28 (26 Years of Inaement) 2001 /2002 $525,500 0 6,569 $6,569 AssessmenUCollection Year 2002/2003 2003/2004 2004/2005 2005/2006 $525,500 $525,500 $525,500 $525,500 574,500 1,109,800 2,774,500 2,774,500 $1,100,000 $1,635,300 $3,300,000 $3,300.000 725% 0 0 0 0 125% 13,750 20,441 41,250 41,250 $13,750 $20,441 $41,250 $41,250 Base Inflation Factor Local Tax Capacity Rate Fisral Disparities Contribution From TIF District Administrative Retainage Percent (ma�cimum = 10°/a) Pooling Percent City Taz Rate (Only if Local-Effort TIF) Bonds Bonds Dated O6/28/02 First Interest Date 02/01/03 Underwriters Discount 1.50% LGAMACA Loss: W il4 Mnual locat Contribution Be Made (Yes or No)? I.S.D #� Equalized Taz Capacity Rate I.S.D �k�coc Sales Ratio City Sales Ratio & Taxable Net Tax Capacity Present Value Date & Rate NA 729.923% 2001/2002 O.00QO% 10.00% 0.00°fa NA Note (Pav-AS-You-Gol Note Dated O6/28/02 Note Rate 6.60 NA NA NA NA O6l28/02 NA 5.50% aa-s��- Prepared by: Springsted Incorporated (printed on 5l23l2002 at 3:32 PMj Straus Housing TIF 052302.xIsASSUmptions aa-s�a- u N ^ L . � p O O � � L = m C C 0 O LL. �xa`t- � O1 c 3 c a � � � � p % � A = m . c � N LL j o � ` a m .. o TE y '_ -� ` `m 'U � C N f N � 0 C Z m Q � C N X @ 9 � � E Q m @ Z _ m M � � � m a E � o � c .. 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a in �c � m o� o O O O O O O O O � \ �y ` ` ` \ ` ` ` ` ` m � o c �nmm� �c� �n n mmin mmm�nm m�n c`'�m M e� n c'�n � wmm c V � N � � � � � � � � � � � � e�- � � � e�- .�- � � �.�- � � � � � � ¢` a w � x N O m N b O LL F- rn N R y A � w r v � N � 6�--S��- Pro ected Pa -As-YOU-Go Note Re ort City of Saint Paul, Minnesota Tax Inerement Financing (HOUSing) D(striet Sttaus Nausing Project Scenario A (MUimum TF Ouation) Nota Date: O6/28/02 Note Ratz 6.60% PmourK $524.200 52RIFI�fYllld� Ne[ Capitaf¢ed Date Pnndpal trderest P& i Reve�e i�rterest 02/01/03 0.00 0.00 0.00 0.00 20,470.01 08/01/03 0.00 4.183.00 4.183.00 4./83.00 73.791.71 02/01/04 0.00 4.183.00 4.183.00 4.183.00 14.246.22 08/01/04 0.00 8.081.00 8.081.00 8.081.00 70.878.34 7L01/05 0.00 B.O81.00 8.081.00 8.081.00 11.175.35 08/01/OS 578.37 19.625.13 20,203.50 20,203.W 0.�0 02I01/OB 597.45 19,60605 2Q203.50 20,203.50 0.00 OB/01lO6 1,0976] 79,586.33 20.684.00 20.684.00 0.00 02101/0] 1,133.$9 19,550.11 20,684.00 20,684.00 0.00 OB/07lQ7 1,661.81 14,512.69 21,174.50 21,114.50 0.00 07J01/OS L]16.65 19,457.&5 21,174.W 21,04.50 0.00 oam�roa 2znao is.am.za 2�.s�a.00 zi.s7a.00 o.ao 0?l01/09 2.347.80 19.326.20 21.6]6.00 21.6/4.00 0.00 OB/01l09 2.935.28 19.248.72 22.184.00 22.i84.00 0.00 02/01l10 3,032A4 19,151.86 22,184.00 22,18400 0.00 08/07/10 3,652J0 79,051.80 22,704.50 22,704.50 p.00 02/O7/71 3,773.24 78,93126 22,704.W 22,704.50 0.00 OBNiH1 4,42&26 78.80674 23,23500 23,23500 0.00 02/01H2 4,574.39 18,660.61 23,235.00 23,235.00 0.00 08/Ot/12 5,266.35 i6,50965 23,77fi.00 23,776.00 0.00 02101H3 5,440A4 18,335.86 23,T76.00 23,776.00 0.00 08/01/73 6,7]2.16 18,15G$4 24,328.50 24,328.50 0.00 02/01/14 Q3]5.84 17,952.66 24,328.50 24,328.50 0.00 0&01/14 7,10.925 77,742.25 24,&91.50 24,897.50 0.00 01/01/15 7,385A] 17,506.33 24,891.W 24,697.50 0.00 OB/01H5 8,203.38 17,262.62 25,466.00 25,466.00 0.00 02/01/16 8.474.09 16.997.97 25.466.00 25p66.00 0.00 OB/01H6 9,339.74 i6,]12.26 26,05200 26,052.00 0.00 02/OtH7 9,6M17.95 16,404.05 26.052.00 26,052.00 0.00 OBIOiH7 70,563.83 16,0856/ 26,649.50 26,649.50 0.00 02/Oi/78 10,91244 75,737.06 26,849.50 26,649.50 0.00 OBNiHB 71,861.55 75,3]6.95 27,256.W 27,258.50 0.00 07J01/19 12,273.66 74,98486 27,258.50 27,258.50 0.00 OBlOi/79 13,300.17 74,57983 2],880.00 27,880.00 0.00 07J01/20 13,739.W 14,14093 27,880.00 27,880.00 0.00 08/Oi/ZO 14,826.96 73,60T.54 28.574_W 28,514.50 000 02101/27 15,31615 73,79825 28,514.'A 28,514.50 0.00 OB/OiRt 1Q4fi8.69 12,692.87 29,181.50 29,161.50 0.00 OvOi/22 17,012.16 72,1a9.34 29,161.50 29,161.50 0.00 08/07l22 78.233.Sfi 11.58].96 29.821.50 29.821.50 0.00 O110123 18,83517 10.986.23 29,821.50 29,821.50 0.00 08/01/23 20,129.33 10.364.61 30,494.00 30,494.00 0.00 OT/01/24 20,]93.60 9,700.40 30,494.Q0 30.494.00 0.00 OB/07/24 22,166.79 9,01421 31,787.00 37,181.00 0.00 02/01/25 22,898.29 8,282)1 31,181.W 31,187.00 0.00 OB/01/25 24,353.43 7,527.07 37,880.50 31,880.50 0.00 0?/01@6 25,i5F.10 6,]23.40 31,880.50 31,880.50 0.00 08/01/26 26,701.78 5.89322 32,595.00 32.595.00 000 02/01/2] 27,502.9A 5,012.08 32,595.00 32.595.00 0.00 OB/01/27 29.221d8 4,101.82 33,323.00 33,323.OQ 0.00 02/01/28 30.185.48 3,137.52 33,323.00 33,323.00 0.00 08/01@B 31,924.80 2,141.40 34,068.00 34,066.00 0.00 02/01/29 32,966.40 1,087.89 34,054.29 34,OSM129 0.00 08/0129 0.00 0.00 0.00 0.00 0.00 ovoino o.00 o.ao o.ao o.00 o.00 $594,701 $708,27226 57.30291329 $1,30?,91329 $]0,501.03 Surplus Tu Increment H.71 TotalNetRevmue $1,302.925.00 �Odtl Balarce d,�m�,c„y sza.zoo.00 544.670.01 558.461.12 572.707.34 583,525.68 594,701.03 594.72266 593,52521 592,427.54 591,293.65 589,631.&i 587,915.79 585.642.39 583,294.59 580,359.31 5]],32].17 573,674.47 569,901.23 565,4]2.9] 560,898.58 SSS,fi3223 550,192.09 544.019.93 537,644.a9 530,494.84 523,109.67 574.906.29 506.43220 49�.092.46 48].444.57 476.880.68 4&5,9fi8.24 45M1,086.69 441,813.05 428,57288 414.773.81 399.946.85 384.830.60 368.161.91 351,ta9.75 332,916.19 314,080.92 293,951.59 273,757.99 2W.991.20 228,09291 203,]39.48 178,58238 151,880.60 724.297.66 95.076.48 64,897.00 32,966.40 0.00 0.00 a.ao Preparetl by. SpringsteC i�orporatetl (printed on 5/232002 at 3:32 PM) Slraus Housing TIF 052302.rJs 0 �.- S ��- Market Value Mai sis Re ort City of Saint Paul, Minnesota Tax Increment Financing (Housing) District Straus Housing Project Scenario A (Maximum TIF Duration) .Assumotions Present Value Date P.V. Rate - Gross T.i. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 06/28/02 5.50% $2,774,500 678,296 $2,096,204 0 $2,096,204 Annual Present Gross Tax Value @ Year Increment 5.50% 2003 9,330 8,722 2004 16,023 15,970 2005 45,059 37,846 2006 46,130 36,725 2007 47,224 35,636 2008 48,339 34,576 2009 49,476 33,544 2010 50,637 32,542 2011 51,820 31,566 2012 53,027 30,617 2013 54,258 29,695 2014 55,514 28,798 2015 56,795 27,927 2016 58,102 27,080 2017 59,435 26,257 2018 60,794 25,457 2019 62,180 24,680 2020 63,595 23,926 2021 65,037 23,193 2022 66,509 22,481 2023 68,010 21,790 2024 69,541 21,119 2025 71,102 20,468 2026 72,695 19,835 2027 74,319 19,221 2028 75,976 18,625 $1.452,927 $678,296 Prepared by: Springsted Incorporated (5/23/2002) U G O 10 ^ 0 p� R y C L 3 � � � p O LL � x,a` F- m � C = � a V � � C O % � e = � jy a V- � q Q �` E tn o i W U � c N A � EXHYBIT C a a� in $ � a � � M ` � � m � N m O t C ip �� N N N N N p p U' R' W � = W s U Z f e o 0 m c rn n U y ; O O O � G C G I L N U R O C T 0 J X 2 0 f U 'p L h � o= J T Q m � a 0 X ~ Z f Z e a° a° 0 � � r � m o � � � � � H � m m n rn v O th U � � � A fh � � � � m W N ) � � n � o a x d q � ~ O y � N I a�c�Z N O 0 W N X F m O F Z N ` e v � O O e � m n W 0 � � � � n r n � < O ? V � � h h N N p � I� W I� N h N ai m ai �- N � a � o e o ch t� N t7 o �? n in � �m m ` � U K W O C N Q� � t7 i[J t7 N N O -1 � � 0 N ~ � LL L f 3 ° n o 0 y O 4I % � [V 1A t'J I �O N � f � !� O� I� � ti N � N a °o I R z � oi � W N � �- N �- C W r ' a m � a o U � N � N `o v+ � � E o U K �? v y t � o �°- N p > � O 2] � m y ` `° K = a Y �O N � � A � � d�x_ �� s� � � �x a 'O O U "�' W y '_ � . ? V t � > a 'o g W ¢ ti n � m �` R m t a a l0 V U d A t0 �3 '- N L L t V ~ � t�0 t � 6 N d O c L= C y y m R ; V��l O d m ' V d � � � y '� L° y x w � ❑ W �. ~ C �- 0 1- U C O w � a m � .�.. '� G p r y U •0 3 � y . O 3 ry�n f� U N � � d d = n � N W n a y v � U� � 'O d � V ' W W % p � <j m ~ G F ; O N � Z `o y� c o`o v o Z N J 4 y d� d O T. > > v m w= m a°� ..�. t N N W U N o- ti E �U � x w > m x v � U O N p\ �p c C a� d � i- m o � c a� p Z C m O U 9 n ��+ a a m m E L V N Q N �'�" CI � ��omv ° % J 4 a � 3 a v � c � d y N L C C N = V p � U C � � 3 � � o : N C C E E d m N y m d m � U X '4 A a � .�r - « c r O n O c a U � T p � T t 0` 6 N a m m d N 6 4' d LL y F « d V � 5 N U � a T � �U � a c @ H U y � � = C y m �c o ; II C � K �U � R m S1 y U t % ' � Q C U 0 a E X m 1'- h- ._. �. oz-s��- O N ei N .�_. m `o U a N C L N a d C a