02-573ORIGINAL
Council File # �.1. • 5��
Resolution #
Green Sheet � 3ea�s3�
Presented By
Referred To
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
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Committee: Date
1 RESOLUTION APPROVING THE AMENDMENT OF THE TAX INCREMENT FINANCING PLAN
2 FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTH QUADRANT)
4 BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
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6 Section 1. Recitals
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1.01. On June 23, 1999, the Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota (the "Authority") established the North Quadrant Redevelopment Project Area (the "Redevelopment
Project Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan").
1.02. On August 9, 2000, the City Council approved the creation, within the Redevelopment Project
Area, of Tas Increment Financing District No. 1(North Quadrant) (the "Tax Increment District") and the
adoption of a Tax Increment Financing Plan therefor (the °Tax Increment Plan"), all pursuant to and in
accordance with Minnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act") and Laws of
Minnesota 2000, Chapter 490, Article 11, Section 40 (the "Special Law").
1.03. On October 25, 2000, and August 8, 2001, the City Council approved amendments to the Tas
Increment Plan, to, among other things, authorize the issuance of bonded indebtedness and to include additional
properiy in the Tax Increment Financing District.
1.04. The Authority has deternuned that it is necessary to amend the Tax Increment Plan to increase
the authorized expenditures and to increase the bonded indebtedness (the "Third Amendment to Tax Increment
Pinancing Plan"). The Authority has performed all actions required by law to be performed prior to the
amendment of the Tax Increment Plan, including, but not limited to, notification of Ramsey County and
Independent School District Number 625, which have taxing jurisdiction over the property included in the Tax
Increment District, and has requested that the CiTy approve the Amended Plan following the holding of a public
hearing upon published and mailed notice as required by law.
Section 2. Findings for the Third Amendment to Tas Increment Financing Plan.
2AL The City Council hereby fmds that the Tax Increment Plan for Tax Increment Financing District
No. 1(North Quadrant) as amended by the Third Amendment dated June 26, 2002 (the "Amended Plan") is
intended and, in the judgment of the City Council, its effect will be, to carry out the objectives of the
Redevelopment Plan and to create an impetus for the construction in the City of affordable and mixed income
housing, will increase employment and otherwise promote certain public purposes and accomplish certain
objectives as specified in the Redevelopment Plan and Taac Increment Financing Plan, as amended
38 2.02. The City Council hereby reaffirms its previous fmdings that Tax Increment Financing District
39 No. 1(North Quadrant), as enlazged by the Second Amendment dated August 8, 2001, qualifies as an"housing
40 district" within the meaning of the Tas Increment Act and the Special Law for the following reasons: �
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G ' ��roperty to be included in the T� Increment District is located in the Northeast
rant of the City, i.e. within the 15 acre site bounded by Interstate 94 on the north
and east, Jackson Street on the west and Seventh Street on the south, together with the
west side of Jackson Street to midblock between Interstate 94 and South Street.
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 azea median gross
income and an additiona160 percent of the units will be occupied by individuals whose
family income is equal to or less than 115 percent of azea median gross income. Twenty
percent of the units in the TaY Increment District will not be subject to any income
limitations.
Family income means the median gross income for the City as detemuned under section
42 of the Internal Revenue Code of 1986, as amended. The income requirements will be
satisfied if the sum of qualified owner-occupied units and qualified residential rental units
equals the required total number of qualified units. Owner-occupied units will initially be
purchased and occupied by individuals whose family income satisfies the income
requirements. For residential rental property, the income requirements apply for the
duration of the Tas Increment District.
The fair market value of the improvements which are constructed in the Tax Increment
District for commercial uses or for uses other than owner-occupied and rental mixed-
income housing will not consist of more than 20 percent of the total fair mazket value of
the planned 'unprovements in the development plan or agreement. The fair market value
of the improvements will be determined using the cost of construction, capitalized
income, ar other appropriate method of estimating market value.
2.03. The City Council hereby reaffirms the following 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 foreseeable future
and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such
finding being:
The parcels on which the development will occur would not be developed in the
reasonably foreseeable future becausethey have been used for surface parking,
which use generates significant income to the current owner of the property
considering the owner's minimal investment in the properry.
(b) The City Council further finds that the Tax Increment Financing Plan, as amended,
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 development contemplated is in
accordance with the existing zoning for the property.
(c) The City Council further finds that the Tax Increment Financing Plan, as amended, will
afford maximum opporiunity consistent with the sound needs of the City as a whole for the development
of the Tax Increment District by private enterprise. The specific basis for such finding being:
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O '``" Th� �roposed development to occur within the Tax Increment District is housing. The �
development will increase needed affordable and mixed income housing in the City and ��
will increase the mazket valuation of the City.
(d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
the City Council hereby fmds that the increased mazket value of the properry to be developed to the
property added by the Second Amendment to the Tax Increment District that could reasonably be
expected to occur without the use of taY increment financing is $-0- , which is less than the market
value estimated to result from the proposed development (i.e., $16,738,822) after subtracting the
present value of the projected tas increments for the maYimum duration of the T� Increment District
(i.e., $2,242,119). In making these findings, the City Council has noted that the property has been
undeveloped for many yeazs 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 tas increment assistance does not exceed the benefit which will be derived therefrom.
107 2.04. The provisions of this Section 2 are hereby incorparated by reference into and made a part of the
108Amended Plan.
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110 Section 3. Approval of Third Amendment to Tax Increment Financing Plan.
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112 3.01. The Tax Increment Plan for Tax Increment Financing District No. 1(North Quadrant) as
113amended by the Third Amendment dated June 26, 2002, is hereby approved.
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115 3.02. The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
ll 6counsel are authorized and directed to proceed with the implementafion of the Tax Increment District and the
117Third Amendment to Tax Increment Financing Plan and far this purpose to negotiate, draft, prepare and present
118to the Board of Commissioners of the Authority far its consideration all fixrther plans, resolutions, documents
119and contracts necessary forthis purpose.
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121 3.03. The staff of the Authority is hereby directed to file a copy of the Tax Increment Financing Plan,
122as amended by the Third Amendment to T� Increment Financing Plan, with the County Auditor of Ramsey
123County and the Commissioner of Revenue.
Benanav
Blakey
Bostrom
Col eman
Harris
Lantry
ReiteY
Adopted by Council: Date �-� ° a a ��-
Adoption Certified by Counci ecretary ,�
Approved by Mayor:
Requested by Department of:
Form Approved by City
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DEPARTMENT/OFFICE/COUNCII.: DATE INTTIATED GREEN SHEET No.: 202153 Dj�S��
PED June 12, 2002
CONTACT PERSON & PHONE: � iNIT ry I � At✓DATE mTCIAl,/DATE
Allen Carlson, 266-6616 � 2 D�rn�z� nuz. �.)�j_ _ ciTY cLEruc
MIJST BE ON COUNCIL AGENDA BY (DATE) ASSIGN _ ��� /J^,�,
NOMBER 3 CITY ATTORNEY McCall (��' 6 COUNCIL RESEARCH
` �U1•ING 4 FINANCIAL SERV DIR.� _ FINANCIAL SERV/ACCTG
PUBLIC HEAIZING (6/26/02) ��ER _5_MAYOR (OR ASST.) I TEAM LEADER LJb /
r�
TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATLTRE)
ACTION REQUESTED:Sign resolution approving the 3` amendment of the tax increment financing plan for Tax
Increment Financing District No. i(North Quadrant)
RECONIMENDATIONS: Approve (A) or Re�ect (R) PERSONAL SERVICE CONTRACTS MUST ANSWER'I'f� FOLLOWING
QUESTIONS:
PLANNING COMP�IISSION I. Has this person/ficm ever worked under a contract for this depaztment?
CIB COMIvIITCEE Yes Na
CIVIL SERVICE COMIvIISSION 2. Hu this person/fum ever been a ciry employee?
Yes No
3 Does this person/ficm possess a skill not nonnally possessed by any curtent ciTy employee�
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INiTIA77NGPROBLEM, ISSUE, OPPOR'I'IJNl'i'P (N'ho, What, When, Where, Why)
The proposed amendment to the tax increment financing plan reflects changes in the tax increment financing
budget. When the original budget was prepared it was based upon estimates of the financial actions that were
being proposed. Now that Phase I& II haue been completed we have more accurate budget numbers. The revised
budget also reflects the change in the amount of increment that will be generated as the result of 2001 legislative
changes affecting tax capacity. Pursuant to State law and the State Auditor we are obligated to maintain accurate
records of our tax increment districts. State law also requires us to hold a Public Hearing anytime a change is
made to the tax increment plan. This item will also be addressed before the HRA which will also include a request
to modify the HRA budget to reflect changes to the financing of activities within the TIF District.
ADVANTAGESIFAPPROVED:
� ����
Compiiance with State law and more accurate accounring of the HRA's fmancial conditio s a��°" "'a �
DISADVAN'LAGESIFAPPROVED Ji7:8 1 � G�:�i
None.
�a��� :�� � � ������
nisAnvnNTncES iF NoT nrrxovEn. We could be found in non-compliance with State Auditor reviews
TOTAL AMOUNT OF TRANSACTION: N/A COST/REVENIJE BUDGETED: `� ���� �a����'
Z�
FUNDING SOURCE: AC'i'[VI'1'Y NUMBER:
FINANCIAL INFORMATION: (EXPLAII� ��� � � '�,.,,
K\Shared�Ped\CARLSOAPWertnanWQ 3rd amend gansM1cet form wpd -�
�" t y
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT NO. 1(NORTH QUADRANT)
(a housing district)
within the
NORTH QUADRANT REDEVELOPMENT PROJECT AREA
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: August 9, 2000
Amended: October 25, 2000
Second Amendment: August 8, 2001
Third Amendment: June 26, 2002
This document was draRed by: BRIGGS AND MORGAN (MMD)
Professional Association
2200 First National Bank Bldg.
St. Paui, MN 55101
(651)223-6625
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1(NORTH QUADRANT)
Subsection 1.
Subsecrion 2.
Subsection 3.
Subsection 4.
Subsection 5.
Subsection 6.
Subsection 7.
Subsection 8
Subsection 9.
Subsection 10.
Subsection 11.
Subsection 12.
Subsection 13.
Subsection 14.
Subsection 15.
Subsection 16.
Subsection 17.
Subsection 18.
Subsection 19.
Subsection 20.
Subsection 21.
Subsection 22.
Subsection 23.
Subsection 24.
Subsection 25.
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Forward; Background ...................................................................................... l
Statutory Authority ..........................................................................................1
Statement of Objectives ................................................................................... l
Redevelopment Plan Overview ........................................................................ 2
Parcels to be Included in Tas Increment Financing District No. 1 .................. 3
Pazcel in Acquisition ........................................................................................ 3
Development Acrivity in Taac Increment Financing Dishict No. 1 for
which Contracts have been Signed .................................................................. 3
Other Specific Development Expected to Occur within Redevelopment
Area .................................................................................................................. 4
Estimated Cost of Project ................................................................................. 4
Estimated Amount ofBonded Indebtedness .................................................... 5
Sources ofRevenue ..........................................................................................5
Estimated Captured Tax Capacity and Estimate of Tas Increment ................. 6
Type of Tas Increment Financing District ....................................................... 6
Duration of Taac Increment Financing District ................................................. 7
Estimated Impact on Other Tasing Jurisdictions ............................................. 7
State Tax Increment Financing Aid ................................................................. 7
Modification of Taac Increment Financing District and/or Tas
Increment Financing Plan ................................................................................ 8
Modifications to Tax Increment Financing District ......................................... 8
Administrative Expenses ................................................................................. 9
Limitation of Increment ................................................................................. 10
Useof Tax Increment ..................................................................................... 11
Notification of Prior Planned Improvements ................................................. 11
Excess Tax Increments .................................................................................. 12
Requirements for Agreements with the Developer ........................................ 12
Other Limitations on the Use of Tax Increment ............................................12
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Subsection 26. County Road Costs ........................................................................................14
Subsection 27. Assessment Agreements ................................................................................14
Subsection 28. Administration of the Tas Increment Financing District ............................... 14
Subsection 29. Financial Reporting Requirements ................................................................14
EXHIBIT A-1 - Map of Tax Increment District No. 1, as originally adopted
EXHIBIT A-2 - Map of Tax Increment District No. 1, as enlazged by Second Amendment
EXHIBIT B- Map of North Quadrant Redevelopment Project Area
EXHIBIT C-1 - Projected Talc Increments from Phase 1
EXHIBIT C-2 - Projected Taac Increments from Phase 2
EXHIBIT A-1 - Estimated Impact on Other Taxing Jurisdictions of Phase 1
EXHIBIT D-2 — Estimated Impact on Other Taxing Jurisdictions of Phase 2
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TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1(NORTH QUADRANT)
Subsection l. Forward; Back¢round. The Housing and Redevelopment Authority of the
City of Saint Paul, Ivlinnesota (the "HRA"), and its staff and consultants have prepazed the
following information for the establishment of Tax Increment Financing District No. 1(North
Quadrant), a housing district (the "Taac Increment District"). The Ta�c Increment District is
located within the North Quadrant Redevelopment Project Area (the "Redevelopment Project
Area") established by the HRA pursuant to the North Quadrant Redevelopment Plan adopted by
the HRA on June 23, 1999 (the "Redevelopment Plan"). The Redevelopment Plan was approved
by the Planning Commission on June 23,1999.
The Tax Increment Financing Plan was originally adopted on August 9, 2000, and was
amended on October 25, 2000, to among other things, authorize the issuance of bonded
indebtedness. On August 8, 2001, the I-IRA amended the Taz Increment Financing Plan in
connection with a second phase of development, to add additional property to the Taac Increment
Financing District, to increase the authorized expenditures and to authorize additional bonded
indebtedness.
On June 26, 2002, in connection with the completion of all phases of the development,
the F-IRA amended the Tax Increment Financing Plan to increase the bonded indebtedness and
authorized expenditures.
Subsection 2. Statutorv Authoritv. There exist areas within the City of Saint Paul (the
"City") where public involvement is necessary to cause development to occur. To this end, the
HRA has certain statutory powers pursuant to special legislation (Laws of Minnesota, Chapter
490, Article 11, Section 40 (the "Special Law"), and Minnesota Statutes, Section 469.174
through 469.179 (the "Taac Increment Financing Act" or "TIF Act"), to assist in financing public
costs related to a project.
Subsection 3. Statement of Objectives. The Tax Increment Financing District, as
originally adopted, consists of 2 parcels of land and adjacent and internal rights-of-way.
In connection with the second amendment, 2 parcels were added to the Tax Increment
Financing District. A map showing the boundaries of the Tas Increment Dishict, as originally
adopted, is attached as Exhibit A-1. A map showing the boundaries of the Tax Increment
District, as expanded by the Second Amendment, is attached as Exhibit A-2. The Tax Increment
Financing District is being created to facilitate a 38 unit owner occupied townhome development
(the "Phase 1 Owner Occupied Development") and a 114 unit rental apartment facility (the
"Phase 1 Rental Development"). Phase 2 of the development is a 38 unit owner occupied
townhome development (the "Phase 2 Owner-Occupied Development") and a 122 unit rental
apartment facility (the "Phase 2 Rental Development"). The tax increment financing plan is
expected to achieve many of the objectives outlined in the Redevelopment Plan for the North
Quadrant Redevelopment Project Area. The following are some of the objectives being
facilitated by this Taac Increment Financing Plan.
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A. Provide Affordable Housin� for Saint Paul Residents.
1. Phase 1 Development. The available housing in the downtown area of the
city will expand by more than 152 units with the completion of the housing development
contemplated by this Tax Increment Financing Plan. 22 of the units in the Phase 1 Owner-
Occupied Develogment will be affordable to households between 80% and 115% of azea median
income. A sufficient number of units in the Phase 1 Rental Development will be affordable to
low and moderate income persons such that the requirements of the Special Law aze met.
2. Phase 2 Development. The available housing in the downtown area of the
City will expand by more than 160 units with the completion of the Phase 2 Development. A
sufficient number of units in Phase 2 will be affordable to low and moderate income persons
such that the requirements of the Special Law are met.
B. To Redevelop Underused Propertv.
The Taac Increment District is a site that has been underutilized for many yeazs. The
majority of the azea comprising the site has been used for surface parking. New commercial,
cultural and recreational inveshnents are jeopardized by lack of development in the downtown
azea.
In order to protect past investments and encourage new development in the downtown
area new housing development needs to be created to encourage additional private investment.
C. Expand the Tas Base of the Citv of Saint Paul.
It is expected that the taxable market value of pazcels in the Taac Increment District will
increase by approximately $21,280,000 and $16,738,822 as a result of the Phase 1 Development
and Phase 2 Development, respectively.
The activities contemplated in the Redevelopment Plan and this Tax Increment Financing
Plan do not preclude the undertaking of other qualified development or redevelopment activities.
These activities are anticipated to occur over the life of the Taac Increment Dishict and the
Redevelopment Project.
Subsection 4. Redevelopment Plan Overview.
Property to be Acquired - Selected property located within Tax Increment
Financing District or Redevelopment Project Area may be acquired by the HRA.
2. Relocation - if necessary, complete relocation services aze available pursuant to
Minnesota Statutes, Chapter 117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to a development and completion of
the necessary legal requirements, the HRA may sell or assist a developer with the
cost of selected properties within Taac Increment Financing District or
Redevelopment Project Area, or may lease land or facilities to a developer.
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Subsection 5. Parcels to be Included in Tax Increment Financine District No. 1. The
following parcels located in the City of Saint Paul, Ramsey County, Minnesota:
A. Phase 1 Development.
PIN NO.
312922440028
312922440029
B. Phase 2 Develooment.
PIN NO.
312922440009
312922440008
ADDRESS
221 7�' Street East
440 Sibley Street
ADDRESS
205 Eighth Street East
194 Ninth Street East
FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1 CAN BE OBTAINED
FROM THE EXECUTIVE DIRECTOR OF THE IIl2A.
Subsection 6. Parcel in Acquisition. The HRA may finance all or a part of the costs of
acquisition of the parcels identified in Secrion 5 of this Tax Increment Financing Plan.
The following are conditions under which properties not designated to be acquired may
be acquired at a future date:
(1) The HRA 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 7. Development Activitv in Tax Increment Financin� District No. 1 for
which Contracts have been Siened. The following contracts have been or will be entered into by
the HRA and the persons named below:
Phase 1 Development:
As of June 26, 2002, the HRA had entered into development agreements with
Northeast Quadrant, LLC, and Sibley Pazk Limited Partnership, both dated
October 17, 2000, for the development of a 38 unit owner occupied townhome
development and a 114 unit rental aparhnent facility, respectively.
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development and a 114 unit rental apartment facility, respectively.
Phase 2 Development:
As of June 26, 2002, the HRA had entered into development agreements, both
dated September 27, 2001, with Dakota on the Pazk LLC and Sibley Court
Limited Partnership for the development of a 37 unit owner occupied townhome
development and a 122 unit rental apartment facility, respectively.
Subsection 8. Other Specific Development Expected to Occur within Redevelopment
Area.
As of June 26, 2002, the HRA was e�anding the Redevelopment Project Area to
include the pazcels of land on which the Straus Building is located in connection
with a rental housing development. The HRA expects that the acquisition and
construction of the above housing development wiil encourage additional
development in the Redevelopment Project Area.
Subsecfion 9. Estimated Cost of Project. The HRA has determined that it will be
necessary to provide assistance for certain public costs of certain housing activifies. To facilitate
the development of the Ta�c Increment Financing District, this Taac Increment Financing Plan
authorizes the use of taa� increment fmancing to pay for the cost of certain eligible expenses. The
estnnate of public costs and uses of funds associated with Tas Increment Financing District is
outlined in the foilowing table:
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Subsection 10. Estimated Amount of Bonded Indebtedness. The HRA may issue its tax
increment revenue bonds in the respective amounts not to exceed $1,283,000 to finance public
costs ofthe Phase i Owner Occupied Development and $1,140,000 to finance the public costs of
the Phase 2 Owner Occupied Development. A portion of the public costs may be financed on a
pay-as-you-go basis if and to the extent a portion of the proceeds of the revenue bonds aze applied
to the ea�tra ordinary redemption of the bonds. The expenditures authorized by this Tas Increment
Financing Plan for the Rental Development will be paid for on a pay-as-you-go basis. The
principal amount of the Tax Increment Notes for the Rental Development will not exceed
$2,140,000 for Phase I and $1,500,000 for Phase II.
Subsection 11. Sources of Revenue. The costs outlined in Sec6on 9 above will be
financed through the annual collecfion of ta�c increments, and the loans or grants given by or
through the City or HRA as set forth above. The total cost of the Phase 1 Rental Development
and Phase 2 Rental Development aze estimated to be approximately $17,000,000, and
$18,180,000 respectively. The total cost of the Phase 1 Owner Occupied Development and the
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Estimated costs associated with Tax Increment Financing District are subject to change and may
be reallocated between line items by the FIRA. The cost of all activities to be financed by the tax
increment will not exceed, without formal modification, the budget for the ta�� increments set
forth above.
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Phase 2 Owner Occupied Development aze estimated to be approximately $9,500,000 and
$10,792,000 respectively.
Additional sources of funds for the Phase 1 Rental Development wiil be assistance
directly from the Minnesota Housing Financing Agency in the amount of $700,000 and from the
Family Housing Fund in the amount of $150,000. The Developer will receive a$450,000 grant
d'uectly from the Minnesota Housing Financing Agency for the Phase 1 Owner Occupied
Development. The Developer will conhibute equity or obtain private financing for the
remaining costs of the Developments.
Subsection 12. Estimated Captured Taac Capacitv and Estin�ate of Tax Increment. The
most recent tax capacity of Taac Increment Financing District is estimated to be $10,577 as of
January 2, 1999. In connection with the additional property added to the Tax Increment
Financing District by the Second Amendment, the most recent tax capacity is $8,812.
The estimated captured tas capacities of Tas Increment Financing District at completion
of Phase 1 Development and Phase 2 Development is estimated to be $254,812 and $179,400,
respectively.
The HRA elects to retain all of the captured tax capacity to finance the costs of Tax
Increment Financing District No. 1. The HRA elects the method of tas increment computation
set forth in Minnesota Statutes, Section 469.177, subd. 3(a).
Subsection 13. Twe of Tas Increment Financing District. Taac Increment Financing
District No. 1 is a housing district established, pursuant to Minnesota Statutes, Section 469.174,
Subd. 10, and the Special Law, and wili satisfy the requirements described below.
The Tax Increment Financing District consists of a project, or a portion of a project,
intende3 for occupancy, in part, by persons of low and moderate income as defined in Minnesota
Statutes, 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; any other similar present or future federal, state, or municipal legislation, or
the regulations promulgated under any of those acts. Twenty percent of the units in the
development in the Tas Increment District must be occupied by individuals whose family
income is equal to or less than 50 percent of area median gross income and an additional 60
percent of the units in the development in the Tas Increment District must be occupied by
individuals whose family income is equal to or less than 115 percent of area median gross
income. Twenty percent of the units in the development in the Tas Increment District are not
subject to any income limitations. Family income means the median gross income for the area as
determined under section 42 of the Internal Revenue Code of 1986, as amended. The income
requirements are deemed to be satisfied if the sum of qualified owner-occupied units and
qualified residential rental units equals the required total number of qualified units. Owner-
occupied units must be initially purchased and occupied by individuals whose family income
satisfies the income requirements of this subdivision. For residential rental property, the income
requirements of this subdivision apply for the duration of the Tax Increment District.
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The development in the Taac Increment District does not qualify if the fair market value
of the improvements which aze constructed for commercial uses or for uses other than owner-
occupied and rental xnixed-income housing consists of more than 20 percent of the total fair
mazket value of the pianned 'unprovements in the development plan or agreement. The fair
market value of the unprovements may be determined using the cost of construction, capitalized
income, or other appropriate method of estnnating mazket value.
In establishing Taac Increment Financing District, the determination has been made that
the anticipated development would not be reasonably expected to occur solely through private
investment within the reasonably foreseeable future and that therefore the use of tax increment
financing is deemed necessary. In making this deternunation the HRA has relied on its own
laiowledge of the development history of the azea and on representations made by the Developer.
The HRA and the City have determined that the proposed development of the Tas
Increment District would not reasonably be expected to occur solely through private investment
within the reasonably foreseeable future and that the increased market value of the site that could
reasonably be expected to occur without the use of taac increment financing wouid be less than
the increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum duration of the
district permitted by the plan.
Subsection 14. Duration of Tax Increment Financing District. The duration of Tas
Increment Financing District will be 25 years from the receipt of the first tax increment. The
date of receipt of the first tax increment is expected to be July of 2002. Attached as Exhibit C-1
is the proj ected receipt of tax increments from the Phase 1 Development in the Tax Increment
Financing District. Attached as Exhibit C-2 is the projected receipt of tas increments from the
Phase 2 Development in the Taac Increment District.
Subsection 15. Estimated Imnact on Other Tasine Jurisdictions. The estimated impact
of Tax Increment Financing District on the other taacing jurisdictions assumes construction would
have occurred without the creation of Tax Increment Financing District. If the construction is a
result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that
the fiscal impact 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 Tax Increment
Financing District would be as set forth on Exhibit D if the "but for" test was not met.
Subsection 16. State Tax Increment FinancinQ Aid. Pursuant to Minnesota Statutes,
Section 273.1599, for tax increment financing districts for which certification was requested after
Apri130, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA)
applied to the municipality's Local Government Aids (LGA) first and, Homestead and
Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized
qualifying captured tax capacity (QCTC) of Tax Increment Financing District.
Pursuant to Minnesota Statutes, Section 273.1599, Subd. 6, the HRA may choose an
option to the LGA-HACA penalty, Tax Increment Financing District is exempt from the LGA-
HACA reduction if the HRA elects to make a qualifying local contribution at the time of
approving the Plan. To qualify for the exemption in each year, the HRA must make a qualifying
1410399v2 7
6�. -S��
local contribution to the project of a certain percentage. The local contribution for a housing
district is 5 percent. The maxnnum local contribution for all dishicts in the City in any year is
limited to two percent of the City's net tax capacity, after which point the HRA must make an
additional contribution equai to the lesser of (a) 0.25 percent of the City's net tax capacity or (b)
3 percent of tas increment revenues for that yeaz.
The amount of the local contribution must be made out of unrestricted money of the HRA
or the City, such as the general fund, a property tax lery, or a federal or state grand-in-aid which
may be spent for general government purposes. The local contribution may not be made,
directly or indirectly, with tax increments or developer payments. The local contribution must be
used to pay project costs and cannot be used for general government purposes.
The HRA elects to make the annual local contribution to the project to exempt itself
from the LGA-HACA penalty. The HRA will pay for costs of the project described in ttris
Plan, in an amount equal to 5 percent oF annual taac increment for TaY Increment Financing
District, subject to the limitations described above, in any year in which such amount exceeds 2
percent of the City's net taac capacity. Such contribution may be in form of either lump sum or
annual payments (in addition to tas increment payments) towards costs identified in this Plan or
other costs related to that development. The contribution may also be made in the form of public
improvement financed by the Gity or other unit of government with unrestricted funds.
Subsection 17. Modification of Tax Increment Financing District and/or Taac Increment
Financine Pian. As of August 9, 2000, no modifications to Tax Increment Financing District No.
1 or the Tax Increment Financing Plan therefore have been made. On October 25, 2000, the Ta7c
Increment Financing Plan was amended and restated as set forth herein.
Subsection 18. Modifications to Tax Increment Financin¢ District.
In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any:
1. reduction or enlargement of the geographic azea of the Tax Increment Financing
District;
2. 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 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 tax capacity to be retained by the HREI;
4. increase in total estimated taac increment expenditures; or
5. designation of additional property to be acquired by the HRA,
shall be approved upon the notice and after the discussion, public hearing and findings required
for approval of the original plan.
1410399v2
Da-- S� �
The geographic azea of District may be reduced, but shall not be enlarged after five yeazs
following the date of certification of the original net tas capacity by the county auditor. The
requirements of this paragraph do not apply if (1) the only modification is elimination of
pazcel(s) from Ta�c Increment Financing District and (2)(A} the current net tax capacity of the
parcel(s) eliminated from the Tax Increment Financing District equals or exceeds the net taac
capacity of those parcel(s) in the Tax Increment Financing District's originai net tax capacity or
(B) the HRA agrees that, notwithstanding Minnesota Statutes, Section 469. 177, Subd. 1, the
original net tax capacity will be reduced by no more than the current net tax capacity of the
pazcel(s) eliminated from the Taac Increment Financing District.
The HIZA must notify the County Auditor of any modificafion that reduces or enlazges the
geographic azea of the Tas Increment Financing District or the Redevelopment Project Area.
Modifications to Tas Increment Financing District in the form of a budget modification or an
expansion of the boundaries wiil be recorded in the Tax Increment Financing Plan.
Subsection 19. Administrative Exvenses.
In accordance with Minnesota Statutes, Section 469.174, Subd. 14, and Minnesota
Statutes, Section 469.176, Subd. 3, administrative expenses means all expenditures of the HRA,
other than:
amounts paid for the purchase of land or amounts paid to contractors or others
providing materials and services, including azchitectural and engineering services,
directly connected with the physical development of the real property in the
district;
2. relocation benefits paid to or services provided for persons residing or businesses
located in the district; or
3. amounts used to pay interest on, fund a reserve for, or sell at a discount bonds
issued pursuant to Minnesota Statutes, Section 469.178.
Administrative expenses also include amounts paid for services provided by bond
counsel, fiscal consultants, and piauuiug or economic development consultants. Tax increment
may be used to pay any authorized and documented administrative expenses for the Tas
Increment Financing District up to but not to exceed 10 percent of the total tax increment
expenditures authorized by the tax increment financing plan or the total tax 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 actuai administrative expenses incurred in connec6on with the Tax
Increment Financing District. The county may require payment of those expenses by February
IS of the yeaz following the yeaz the expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. i i, the county treasurer shall
deduct an amount equal to 0.1 percent of any increment distributed to the HRA and the county
treasurer shall pay the 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 taac increment
1410399v2 9
oe��J I�
financing information and the cost of examining and auditing authorities' use of tas increment
financing.
Subsection 20. Limitation of Increment
Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no taac increment shall be
paid to the HRA for the Tas Increment Financing District after three (3) years from the date of
certification of the Originai Net Tax Capacity value of the taxable property in the Tas Increment
Financing Dish by the County Auditor unless within the three (3) year period:
(a) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in
aid of a project pursuant to any other law, except revenue bonds issued pursuant
to Minnesota Statutes, Sections 469.152 to 469.165, or
(b) the HRA has acquired property within the Ta�c Increment Financing District, 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 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 originai net tax capacity of
the tax increment financing district pursuant to Minnesota Statutes, Section
469.177, no demolition, rehabilitation or renovation of property or other site
preparation, including qualified improvement of a street adjacent to a parcel but
not installation of utility service 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 parcel in accordance with the tax increment
financing plan, no additional tas increment may be taken from that pazcel and the
original net taac capacity of that parcel shall be excluded from the original net taac
capacity of the ta�c increment fmancing district. If the authority or the owner of
the pazcel subsequently commences demolition, rehabilitation or renovation or
other site preparation on that pucel 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 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 reconstruction or rebuilding of
an existing street.
1410399v2 10
D�'i�l (�
Subsection 21. Use of Tax Increment
The HRA hereby deternunes that it will use 100 percent of the captured net tas capacity
of taacable property located in the Tas 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 administration costs of the
Redevelopment Project Area pursuant to the Minnesota Stahztes, Sections
469.124 to 469.134;
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,
Section 469.1 76, Subd. 4;
5. to pay principal and interest on any loans, advances or other payments made to
the FIRA 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 tax increment bonds or bonds issued pursuant to the Plan or
pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections
469.152 to 469.165, or both; and
7. to accumulate or maintain a reserve securing the payxnent when due of the
principal and interest on the tas 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
HRA nor for other putposes prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Subsection 22. Notification of Prior Planned Imorovements.
The HRA shall, after due and diligent seazch, accompany its request for certification to
the County Auditor or its notice of the Tax Tncrement Financing District enlargement with a
listing of all properties within the Taac Increment Financing District or area of enlargement for
which building permits have been issued during the eighteen (18) months immediately preceding
approval of the Plan by the municipality pursuant to Minnesota Statutes, Section 469.175, Subd.
3. The County Auditor shall increase the original value of the Tax Increment Financing District
by the value of improvements for which a building permit was issued.
Pursuant to Minnesota Statutes, Section 469.177, Subd. 4, the HRA has reviewed the
area to be included in the Tax Increment Financing District and found no parcels for which
building permits have been issued during the 18 months immediately preceding approval
of the Plan by the HRA.
1430399v2 I L
�a- s ��
Subsection 23. Excess Tas Increments
Pursuant to Minnesota Statutes, SecUon 469.176, Subd 2, in any year in which the tas
increment exceeds the amount necessary to pay the costs authorized by the Plan, including the
amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475. 61,
Subd. 3, the HI2A shall use the excess amount to do any of the following:
prepay any outstanding bonds;
2. discharge the pledge of tas increment therefor;
pay into an escrow account dedicated to the payment of such bond; or
4. return the excess to the County Auditor for redistribution to the respective taxing
jurisdictions in proportion to their local tax rates.
In addition, the HRA may, subject to the limitations set forth herein, choose to modify the
Plan in order to finance additional public costs in the Tas Increment Financing District or
Redevelopment Project Area.
Subsection 24. Requirements for A¢reements with the Developer.
The HRA will review any proposal For private development to determine its conformance
with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate
this effort, the following documents may be requested for review and approval: site plan,
construction, mechanical, and electrical system drawings, landscaping 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 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 in the Taac Increment Financing District as set forth in the
Plan shall at any time be owned by the HRA as a result of acquisition with the proceeds of bonds
issued pursuant to Minnesota Statutes, Section 469. 178, without the HRA having, prior to
acquisition in excess of 10 percent of the acreage, concluded an agreement for the development
or redevelopment of the property acquired and which provides recourse for the HRA should the
development or redevelopment not be completed.
Subsection 25. Other Limitations on the Use of Tax Increment
1. General Limitations All revenue derived from tax increment shall be used in
accordance with the 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
I410399v2 12
aa- S��
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 azea used as a public park, or a facility used for
social, recreation or conference purposes. This provision shail not prolubit the
use of revenues derived from tax increments for the construction or renovation of
a pazking structure.
2. Poolin¢ Limitations. At least 80 percent of taac increments from the Tas
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
were used to finance activities within said district or to pay, or secure payment of,
debt service on credit enhanced bonds. Not more than 20 percent of said taac
increments may be expended, through a development fund or otherwise, on
activities outside of the Tas Increment Financing Dishict except to pay, or secure
payment of, debt service on credit enhanced bonds. For purposes of applying this
restriction, all administrative expenses must be treated as if they were solely for
activities outside of the Tax Increment Financing District.
Five Year Limitation on Commitment of Tax Increments Tax increments derived
from the Taac Increment Financing District shall be deemed to have satisfied the
80 percent test set forth in paragraph (2) above only if the five year rule set forth
in Minnesota Statutes, Section 469. 1763, Subd. 3, has been satisfied; and
beginning with the sixth year following certification of the Tax Increment
Financing District, 80 percent of said tax increments that remain after
expenditures permitted under said five year rule must be used oniy to pay
previously commitment expenditures or credit enhanced bonds as more fully set
forth in Minnesota Statutes, Section 469.1763, Subd. 5.
4. Exnenditures 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 aze used exclusively to assist housing that meets the
requirements for a qualified low-income building as defined in Section 42 of the
Internai 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 prepaze the site for housing, (ii)
acquire, construct or rehabilitate the housing or (iii) make public improvements
directly related to the housing.
1410399v2 13
�� r'S'/'�
Subsection 26. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la, the county boazd 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 taac increment will, in the judgement of the county, substantially
increase the use of county roads requiring construction of road improvements or other road costs
and if the road improvements aze not scheduled within the next five years under a capital
nnprovement plan or other county plan.
In the opinion of the HRA and consultants, the proposed development outlined in tYus
Plan will ha�e little or no ixnpact upon county roads. If the county elects to use increments to
unprove county roads, it must norify the HI2A within thiriy days of receipt of this Plan.
Subsection 27. Assessment Aereements.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an
agreement in recordable form with the developer of property within the Tax Increment Financing
District which establishes a minimum market value of the land and completed improvements for
the duration of the Tax Increment Financing District. T'he assessment agreement shali be
presented to the assessor who shall review the plans and specifications for the improvements
constructed, review the market value previously assigned to the land upon which the
improvements are to be constructed and, so long as the minnnum market value contained in the
assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the
assessor may certify the minimum mazket value agreement.
Subsection 28. Administration of the Tax Increment Financing District.
Administration of the Tax Increment Financing District will be handled by the Executive
Director of the HRA.
Subsection 29. Financial Reportine Rectuirements.
The HRA will comply with all reporting requirements of Minnesota Statutes, Section
469.175, Subd. 5, 6 and 6a.
1410399v2 14
EXHIBIT A-1
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EXHIBIT C-1
Assum tions Re ort
City ot St Paut, Minnesota
Proposed Tax Increment (Redevelopment) Financing District
North �uadrant (Sibiey Park) Housing Development
Scenario A- Phase One 7otal Project (26 years, 8% note)
Type o( Tax Increment Financing District
Maximum Duration of TIF Oistrict
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: First $0
Excess
Originat Net Tax Capacity (t)
Base Estimated Market Value
Increase in Estimated Market Vatue (7)
Total Estimated Market Value
Times: First
Excess
O.QO%,
0.00%
50 0.00°/a
0.00%
Totai Net Tax Capacity (7)
Base Inflation Factor
locai Tax Capacity Rate
Fiscai Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooiing Percent
City Tax Rate (Only if Local-Effort TIF}
Bonds
Bonds Dated
First Interest Date
Underwriters Discount
NA
NA
NA
LGA/HACA Loss:
Wili Annual local Contribution Be Made (Yes or No)? (2)
I.S.O k625 Equalized Tax Capacity Rate
I.S.D k625 Sales Ratio
Ciry Sales Ratio & Taxable Net Tax Capacity
Present Va�ue Date & Rate
Yes
NA
NA
NA
09/01/00
09/01 /00
8.00 %
NA
5.00%
(i) See 'Schedule of Project Values" for calculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be avai�abie for debt service.
oa-s��
Redevelopment
25 years from tst increment
09/Otl00
12/Ot/27 (26 Years of Increment)
2000/2001
$683,500
0
0
$10,577
AssessmenUCoilection Year
2001/2002 2002/2003 2003/2004 2004/2005
5683,500 $683,500 5683,500 $683,500
2,000,000 15,065,744 15,065,744 75,065,744
$2,683,500 575,749,244 $75,749,244 $75,749,244
0 0 0 0
0 0 0 . 0_
$41,527
$265,389 S265,389
NA
148.553 % (Payable 2000)
0.0000% (NA for Housing)
70.00%
0.00%
NA
Note fPav-As-You-GO1
Note Dated
Note Rate
$265,389
Przpared by: Springstad Incorporated (printed on O6/28/2000 at 327 PM) Tif062&a xis
oa-s��
Market Value Analysis Report
City ot St. Paul, Minnesota
Proposed Tax Increment (Redevelopmentj Financing District
North Quadrant (Sibiey Park) Housing Deveiopment
Scenario A- Phase One Totai Project (26 years, 8°/a note)
Assumotions
Present Value Date
P.V. Rate - Gross T,(.
Increase in EMV With TIF District
Less: P.V of Gross Tax Increment
Subtotal
Less: Increase in EMV Without TIF
Dif(erence
t
2
3
4
5
6
7
8
9
10
11
12
73
14
15
16
77
1g
19
20
21
22
23
24
25
26
09/Ot/00
8.00%a
$15,065,744
3,481,295
$11,584,449
0
$11,584,449
Annuat Present
Gross Tax Value �
Year Increment 8.00%
2002 45,977 39,166
2003 378,531 298,569
2004 378,531 276,453
2005 378,531 255,975
2006 378,531 237,014
2007 378,531 219,457
2008 378,531 203,207
2009 378,531 788,149
2070 378,531 174,272
2011 378,531 761,308
2012 378,531 149,359
2013 378,537 138,295
2014 378,531 128,051
2015 378,531 718,566
2016 378,531 109,783
2017 378,531 101,651
2018 378,531 94,121
2019 376,531 87,149
2020 378,531 80,694
2021 378,537 74,717
2022 378,531 69,182
2023 378,531 64,057
2024 378,531 59,372
2025 378,531 54,919
2026 378,531 50,851
2027 378,531 47,084
$9,509,252 53,481,295
Prepared by: Springsted incorporated (06/28/2000)
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EXHIBIT C-2
Assum tions Re ort
City of SC Paul, Minnesota
Proposed Taxlncrement(Housing) Financing District
North Quadrent Phase Two
Scenario A- Phase Two Total Project (26 years, 8% note)
Type of Tax increment Financing District
Maximum Duretion of TIF DisVict
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: First $0
Excess
Original Net Tax Capacity (t)
Base Estimated Market Value
Increase in Estimated Market Value (1)
Total Estimated Market Value
Times: First $0
Excess
Total Net Tax Capaciry (1)
0.00%
0.00%
Redeveiopment
25 years from 1st increment
08/01lO7
12/Ot(28 (26 Years of Increment)
2001l2002
$806,000
0
0
$8.812
AssessmenUCollection Year
Oz-S��
2002/2003 2003/2004 2004/2005 2005l2006
$806,000 $806,000 $806,000 $806,000
2,000.000 16,738,822 16,738,822 16,738,822
$2,806,000 $17,544,822 $17,544,822 $17,544,822
0.00% 0 0
0.00% 0 0
$30,677 $188.212
Base Inflation Fac[or
Local Tax Capacity Rate ,
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 70%)
Pooling Percent -
City Tax Rate (Oniy if Local-Effort TIF)
Bonds
Bonds Dated
First Interest Date
Underwriters Discount
NA
NA
NA
0 0
0 0
$188,212 $188,212
NA
136.762% (Payable2001)
0.0000% (NA for Housing)
10% (See Nate #3)
0.00%
NA
Note (Pav-As-You-Gol
Note Dated 08/01l01
Note Rate 8.00%
LGA/HACA Loss ,
Will Annual Local Contribution Be Made (Yes or No)? (2) Yes
I.S.D #625 Equalized Tax Capacity Rate NA
I.S.D #625 Sales Ratio NA
City Sales Ratio & Taxable Net Tax Capacity NA NA
Present Value Date & Rate 08/Ot/Ot 5.00%
(1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution will be made upfront and will not be available for debt service.
(3) Assumes admin. retainage of 10% on apartments, Yownhomes and retail space.
Prepared by: Springsted Incorporated (printed on 6f28/Ot at 1:44 PM) Phase 2 062701 a2 - 10°/a admin
�a-s��
Market Vatue Anai sis Report
City of St. Paul, Minnesota
Proposed Tax Increment (Housing) Financi�g DisGict
North quadrant Phase Two
Scenario A- Phase Two Total Project (26 years, 8°/a note)
Assumotions
Present Value Date
P.V. Rate - Gross T.I.
Increase in EMV With TIF DisVict
Less: P.V of Gross Taz 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
08/01/01
8.00%
$16,738,822
2,242.t 79
$14,496,703
0
$14,496,703
Annual Present
Gross Tax Value @
Year Increment 8.00°/a
2003 29,903 25,310
2004 245,351 192,285
2005 245,351 178,042
2006 245,351 164,854
2007 245,351 152,642
2008 245,351 141,335
2009 245,351 130,866
2010 245,351 121,172
2011 245,351 112.197
2012 245,351 103,886
2013 245,351 96,190
2014 245,351 89,065
2015 245,351 82,468 '
2016 245,351 76,359
2017 245,351 70,703
2018 245,351 65,466
2019 245,351 60,616
2020 245,351 56,126
2021 245,351 51,969
2022 245,351 48,119
2023 245,351 44,555
2024 245,351 41,254
2025 245,351 38,199
2026 245,351 35,369
2027 245,351 32,749
2028 245,351 30,323
$6,163,678 $2,242,179
Prepared by: Springsted Incorporated (6/28/01)
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