03-863Council File # ��J"��DJ
Resolution #
Green Sheet # ✓ �v l
Presented By
Referred To
RESi
SAINT
IJ
RESOLUTION APPROVING THE THIRD
AMENDMENT OF THE TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT
NO. 1 (NORTH QUADRANT)
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
Section 1. Recitals
8 1.01. On June 23, 1999, the Housing and Redevelopment Authority of the City of Saint Paul,
9 Minnesota (the "Authority") established the North Quadrant Redevelopment Project Area (the
10 "Redevelopment Project Area") and adopted a redevelopment plan therefor (the "Redevelopment Plan").
11 1.02. On August 9, 2000, the City Council approved the creation, within the Redevelopment Project
12 Area, of Tax Increment Financing District No. 1(North Quadrant) (the "T� Increment DistricY') and the
13 adoption of a Tax Increment Financing Plan therefor (the °Tas Increment Plan"), all pursuant to and in
14 accordance with Minnesota Statutes, Section 469.174 through 469.179 (the "Tax Increment Act") and Laws
15 of Minnesota 2000, Chapter 490, Article i l, Section 40 (the "Special Law").
16 1.03. On October 25, 2000 and August 8, 2001, the City,Council approved amendments to the Tax
17 Increment Plan, to, among other tkungs, enlarge the geographic area of the Ta�c Increment District and to
18 increasethe authorized expenditures.
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ESOTA
Committee: Date:
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1.04. The Authority has determined that it is necessary to amend the T� Increment Plan in
connection with a third phase development (the "Tlurd Amendment"), to add additional property to the Tax
Increment District, to increase the authorized expenditures and to authorize additional bonded indebtedness.
The Authority has performed all actions required by law to be performed prior to the adoption of the Third
Amendment, including, but not limited to, notification of Ramsey County and Independent School District
Number 625, which haue taYing jurisdiction over the properry included in the Tax Increment District, and has
requested that the City approve the Third Amendment following the holding of a public hearing upon
published and mailed notice as required by law.
Section 2. Findin.s far the Third Amendment of the Taac Increment Financin�Plan.
2.01. The City Council hereby finds that the Tas Increment Plan for Tax Increment Financing
District No. 1(North Quadrant) as amended by the Third Amendment dated September 24, 2003 (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 tl�e Redevelopment Plan and Tax Increment Plan, as amended.
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34 2.02. The City Council hereby reaffirms its previous findings that Taac Increment Financing District
35 No. 1(North Quadrant), as enlazged by the Third Amendment dated September 24, 2003, qualifies as an
36 "housing district" within the meaning of the Tax Increment Act and the Special Law for the following
37 reasons:
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The property to be included in the Tas Increment Aistrict is located in the Northeast
quadrant of the City, i.e. within the 15 acre site bounded by Tnterstate 94 on the north
and east, Jackson Street on the west and Seventh Street on the south, together with the
west side of Jackson Sireet to midblock between Interstate 94 and South Street.
Twenty percent of the housing units the Tas Increment District will be occupied by
individuals whose fanuly income is equal to or less than 50 percent of area median
gross income and an additiona160 percent of the units will be occupied by individuals
whose family income is equal to or less than ll 5 percent of azea median gross income.
Twenty percent of the units in the Tas Increment District will not be subject to any
income lunitations.
Family income means the median gross income for the City as determined under
section 42 of the Internat 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 totai number of qualified units.
Owner-occupied units wiil initially be purck�ased and occupied by individuals whose
family income satisfies the income requirements. For residential rental property, the
income requirements apply for the duration of the TaY Increment District.
The fair mazket value of the improvements which are constructed in the Tas 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 market value
of the planned 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 esfimating market value.
2.03. The City Council hereby makes and reaffirms the following findings:
62 (a) The City Council further finds that the proposed development, in the opinion of the
63 City Council, would not occur solely through private investment within tl�e reasonably foreseeable
64 future and, therefore, the use of tas increment financing is deemed necessary. The specific basis for
65 such fmding being:
66 The parcels on which the development wiil occur would not be developed in
67 the reasonably foreseeable future becausethey have been used for surface
68 parking, or contain buildings which are underutilized, which uses generate
69 significant income to the current owners of the properiy considering the
70 owners' minimal investment in the property.
71 (b) The City Council further finds that the Tax Increment Plan, as amended, conforms to
72 the general plan for the development ar redevelopment of the City as a whole. The specific basis for
73 such finding being:
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The Tax Increment Plan wili generally compiiment 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 Plan, as amended, will afford
maximum opporluniiy 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:
The proposed development to occur within the T� 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.
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(d) Far purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
3(2), the City Council hereby finds that the increased mazket value of the property added to the Tas
Increment District by the Third Amendment that could reasonably be expected to occur without the
use of tax increment financing is $-0- , which is less than the mazket value estimated to result from
the proposed development (i.e., $15,766,700) after subtracting the present value of the projected tax
increments for the maximum duration of the Tax Increment District (i.e., $2,220,000). In making
these findings, the City Council has noted that the property has been undeveloped or underdeveloped
for many yeazs and would likely remain so if taY increment fmancing 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.
2.04. The provisions of this Section 2 aze hereby incorporated by reference into and made a part of
the Amended Plan.
95 Section 3. Aroroxoval of Third Amendment of the Tas Increment Plan
96 3A1. The Tas Increment Plan for T� Increment Financing District No. 1(North Quadrant) as
97 amended by the Third Amendment dated September 24, 2003, is hereby approved and the Amended Plan is
98 hereby adopted.
99 3.02. The staff of the City, the staff of the Authority and the City's and Authority's advisors and
100 legal counsel are authorized and directed to proceed with the implementation of the Third Amendment and
101 for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of the Authority for
102 its consideration all further plans, resolutions, documents and contracts necessary far this purpose.
103 3.03. The staff of the Authority is hereby directed to file a copy of the Tax Increment Plan, as
104 amended by the Third Amendment, with the County Auditor of Ramsey County and to request the County
105 Auditor to certify the original taa� capacity of the property to be added to the Taa� Increment Financing
106 District by the Third Amendment.
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Date - �J-o?�,r-/J�3
Adoption Certified by Council
Secretary
Rv •� //lil.f'��i✓
Appr
Date
Requested by Department of:
. . . �- - .. -
. � � �
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Approved by Financial Services
erf
Form
Approved by City Attorney
Adopted by Council:
�
;4 nEr�xxn�Nrio�cEicouivcu.:
; PED
CONTACl' PERSON & PHONE:
Allen Carlson, 266-6616
MUST BE ON COUNCII. AGENDA BY (DATE)
September 24, 2003 - PUBLIC
H�ARING
DA� �'�D, GREEN SHEET
September 2, 2003
� eZ DII'ARTMENT DIIL ��`TIA�
ASSIGN
��Eg � CiTY ATTORNEY McCall
FOR
ROI7TING �=��`�• SER DIIZ.
ORDER ��YOR (OR� Td� � vr t s�
TOTAL # OF SIGNATURE PAGES _1_
43'�Zo�3
�o.: �' l 2.
anTTnvnA're
-- cisYCLmx
_ COi1NCII,Bosirom
_ EINANC7AL SERVlACCT�i
.(Q _
i renM �wEx (i`�
ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED: PUBLIC HEARING: Please sign the attached City Council Resolution for
submission at the September 24, 2003 City Council meeting. The resolution stipulates a find of facts and approval
to amend the T� Increment Financing Plan and eapansion of the Tax Increment Financing District No.l (North
Quadrant) to include the properties located 215 East 9�` Street and 230 East 10�` Street to allow tax increments
generated from the 50-unit for-sale 9`� Street Lofts project and the 60-unit Lyon's Court senior rental housing
nroiect to be used to assist in the financing of the Lyon's Court project.
RECOMMENDATIONS: Approve (A) or
Reject �)
PLANNING COMMISSION
CIB COMMITTEE
CIVIL SERVICE CONIMISSION
City Council
PERSONAL SERVICE CONTRACTS MUST ANSWER
TIIE FOLLOWING QUESTIONS:
1. Has this person/firm ever worked under a contract for this
depattment?
Yes No
2. Has this person/firm ever been a city employee?.
Yes No
3. Does this person/firm possess a skill not normally possessed
by any current city employee? Yes No
Egplain all yes answers on separate sheet and attach to green
sheet
INITIATING PROBLEM, ISSUE, OPPORTLJNITY (Who, What, When, Where, Why):The proposed Lyon's
Court project has a$2 million shortfall in financing which can be filled from taa� increments generated by the 9�'
Street Lofts and Lyon's Court projegYs. This form of financing is the most logical, in order, to use PED finances
prudently. The Housing and Redevelopment Authority Boazd of Commissioners approved the concept of this form
of fmancing at its August 27 meeting pursuant to Resolution No. 03-8/27-16. See attached HRA Boazd Report for
details of the two proi ects.
nnvnNrncES � arrxovEn: 60 units of affordable senior rental housing will be created and further development will
occur in the North Quadrant. Currently the F3RA owned properties aze not generating any property tases. The
development of the two projects will generate $340,000 in new property taxes of which due to base value
caiculations $36,000/yeaz of taxes will be retained. The remainder of the real estate taxes will become available
when the bonds issued for the project aze paid off.
C�i�r=s
D7SADVANTAGESIFAPPROVED:
DLSADVANTAGES IF NOT AYPROVED:
TAX INCREMEN'I' FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT NO. 1(NORTH QUADRANT)
(a housing distriet)
within the
NORTH QUADRANT REDEVELOPNIENT PROJECT AREA
HOUSING AND AEDEVELOPI�NT AUTHORITY OF THE
CTTY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Adopted: August 9, 2000
Amended: October 25, 200Q
Second Amendment: August 8, 2001
Third Amendment: September 24, 2043
This document was drafted by: BREGGS AND MORGAN (MIVID)
Professional Assaciation
2200 First National Bank Bldg.
St, Paul, MN SS1Q1
(651) 808-6625
b 3 - 8'�
�sssf9o�z
o3-F��3
TABLE OF CONTENTS
(for reference purposes only}
TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO.1 (I30RTH QUADRAI�iT)
Subsection 1.
Subsection 2.
5ubsection 3.
Subsectian 4.
Subsection 5.
Subsection 6.
Subsection 7.
5ubsection 8
Subsection 9.
Subsection 10.
5ubsection 11.
Subsection 12.
Subsection 13.
Subsection 14.
Subsecfion 15.
Subsection 16.
Subsection 17.
Subsecrion 18.
Subsection 19.
Subsection 20.
Subsection 21.
Subsecrion 22.
Subsection 23.
Subsection 24.
Subsection 25.
Subsection 26.
Subsection 27.
Subsection 28.
Subsection 29.
Page
Forward; B ackgound ......................................................................................1
Statutory Authority .......................................................................................... 1
Statement of Objectives ...................................................................................1
Redevelopment Plan Overview ........................................................................ 3
Pazcels to be Included in Tas Increment Financing District No. 1 .................. 3
Parcel in Acquisirion ........................................................................................ 3
Development Activity in Tax Increment Financing Dishict No. 1 for
which Contracts have been Signed .................................................................. 4
Other Specific Development Expected to Occur within Redevelopment
Area.................................................................................................................. 4
Estimated Cost ofProject .................................................................................4
Estimated Amount of Bonded Indebtedness .................................................... 5
Sources of Revenue .......................................................................................... 5
Estimated Captured Tax Capacity and Esrimate of Taac Increment ................. 5
Type of Tas Increment Financing District ....................................................... 6
Duration of Ta�c Increment Financing District ................................................. 7
Estimated Impact on Other Tasing Jurisdicfions ............................................. 7
State TaY Increment Financing Aid ................................................................. 7
Modification of Tas Increment Financing District and/or Tas
Increment Financing Pian ................................................................................ 8
Modifications to Ta�; Increment Financing District ......................................... 8
Administrative Eapenses ................................................................................. 9
Limitarion Increment ................................................................................... 9
Use of Taac Increment .....................................................................................10
Notification of Prior Planned Improvements .................................................11
Excess Tas Increments .................................................................................. 11
Requirements for Agreements with the Developer ........................................12
Other Limitations on the Use of Tax Increment ............................................12
County Costs ........................................................................................13
Assessment Agreements ................................................................................ 14
Administration of the Tax Increment Financing District ...............................14
Financial Reporting Requirements ................................................................ 14
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EXHIBTT A-1 - Map of Tax Increment Dishict No. 1, as originally adopted
EXHIBIT A-2 - Map of Ta7c Increment District No. 1, as enlarged by Second Amendruent
EXIIIBTT A-3 — Map of Taac Increment Dishict No. 1, as enlarged by Third Amendment
EXHIBTT B- Map of North Quadrant Redevelopment Project Area
EXHI$IT C-1 - Projected Tax Increments from Phase 1
EXHIBTT C-2 - Projected Taac Increments from Phase 2
EXHTBTT C-3 — Projected Tax Increments from Phase 3
EXHIBIT D-1 - Estimated Impact on Other Ta�cing Jurisdictions of Phase 1
EYE-IIBIT D-2 — Estimated Impact on Other Ta7cing Jurisdictions of Phase 2
EXHIBIT D-3 — Estimated Impact on Other Taxing Jurisdictions of Fhase 3
EXHIBIT E — Budget
7555190d2 11
D � � �(a�
TAX INCREMENT FINANCINCT PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. i(NORTH QUADRANT)
Subsection 1. Forwazd; Back�round. The Housing and Redevelopment Authority of the
City of Saint PauT, Minnesota (the "HRA"), and its staff and consultants have prepazed the
following informarion for the establishment of Taac Increment Financing Distdct No. 1(North
Quadrant), a housing dishict (the "TaY Increment District"). The Tax Increment District is
located within the North Quadrant Redevelopment Project Area (the "Redevelopment Project
Area") established by the ITRA pursuant to the North Quadrant Redevelopment Plan adopted by
the A on June 23, 1999 (the "Redevelopment Plan"). The Redevelopment Plan was approved
by the Planning Commission on June 23, 1999.
The TaY 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 ffi2A amended the Tax Increment Financing Pian in
connection with a second phase of development, to add additionat property to the T� Increment
Financing Distric?, to increase the authorized expenditures and to authorize additional bonded
indebtedness. On September 24, 2003, the HRA aznended the Tax Increment Financing Plan in
connection with a third phase of development, to add additional property to the TaY Increment
Financing Dishict, to increase the authorized expenditures and to authorize additional bonded
indebtedness.
Subsection 2. Statutorv Authoritv. There exist areas within the City of Saint Paul (the
"i,ity"j where puoiic invoivement is necessary to cause deveiopment to occur. To tnis end, fne
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 "Tas Increment Financing AcY' or "TIF Act"), to assist in financing public
costs related to a pzoject.
Subsection 3. Statement of Objectives. The Tas 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 Taac Increment District, as originally
adogted, is attached as E�ibit A-I. A map showing the boundaries ofthe Tas Increment
Disriict, as expanded by the Second Amendment, is attached as E�ibit A-2. A map showing the
boundaries of the Tas Increment District, as expanded by the Third Amendment is attached as
Exhibit A-3.
The T� Increment Financing District was originaily 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 was a
38 unit owner occupied townhome development (the "Phase 2 Owner-Occupied Development")
and a 122 unit rental apartment facility (the "Phase 2 Rentai Development"). Phase 3 of the
development will be an approximately 50 unit owner occupied l08 style housing development
(the "Phase 3 Owner-Occupied DevelopmenY') and an approximately 60 unit senior rental
1555190v2
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housing development. The taat increment financing plan is expected to achieve many of the
objecrives outlined in the Redevelopment Plan for the North Quadrant Redevelopment Project
Area. The foliowing aze some ofthe objectives being facilitated by this Taac Increment
Financing Plan.
A. Provide Aff'ordable Housin� for Saint Paul Residents.
1. Phase 1 Develonment. 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 Development 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 are met.
2. Phase 2 Develonment. 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 affordabie to low and moderate income persons
such that the requirements of the Special Law aze met.
3. Phase 3 Develonment. The available housing in the downtown area of the
City will expand by appro�mately 11 Q housing units with the completion of the Phase 3
Development. A sufficient number of units in Phase 3 will be affordable to low and moderate
income persons such that the requirements of the Special Law are met.
U T D e.3e l..« T T..�1 ,3 EJ ,.F.,
iO awu�VP.ivu vu eI'uSa Ivu�i�v.
The T� Increment District is a site that has been underutilized for many years. The
majority of the area comprising the site has been used for surface parking. New commercial,
cultural and recreational investments are jeopazdized by lack of development in the downtown
area.
In order to protect past inveshnents and encourage new development in the downtown
area new housing development needs to be created to encourage addirional private investment.
C. Exnand the Taac Base of the Citv of Saint Paui.
It is expected that the tasable mazket value of parcels in the Tax Increment District will
increase by approximately $21,280,000 and $16,738,822 as a zesult o£the Phase 1 Development
and Phase 2 Development, respectively. Tt is expected that the taxable mazket value of parcels in
the Tas Increment District will increase by appmximately $15,766,700 as a result of the Phase 3
Owner-Occupied Development and the Phase 3 Rental Housing Development.
The activities contemplated in the Redevelopment Plan and this Taac Increment Financing
Plan do not prectude the undertaldug of other qualified development or redevelopment activiries.
These acrivities are anticipated to occur over the life of the Tax Increment District and the
Redevelopment Project.
isss�9wz 2
03-g(�3
Subsection 4. Redevelopment Pian Overview.
Properiy to be Acquired - Selected property located within Taac Increment
Financing District or Redevelopment Project Area may be acquired by the HRA.
2. Relocation - if necessary, compiete 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 complerion of
the necessary legal requirements, the HRA may sell or assist a developer with the
cost of selected properties within Taz Increment Financing District or
Redevelopment Project Area, or may lease land or facilities to a developer.
Subsection 5. Parcels to be Included in Taac Increment Financine Dishict No 1. The
foilowing pazcels located in the City of Saint Paul, Ramsey County, Minnesota:
A. Phase 1 Develonment.
PIN NO.
31-29-22-44-0028
31-29-22-44-0029
B. Phase 2 Develonment.
PIN NO.
31-29-22-44-0009
31-29-22-44-0008
C. Phase 3 Develonment.
PIN NO.
31-29-22-41-0031
31-29-22-41-0030
ADDRESS
221 7�' Street East
440 Sibley.Street
ADDRESS
205 8 Street East
194 9` Street East
ADDRESS
215 9` Street East
230 10�' Street East
FURTHER INFORMATION REGARDING THE IDENTIFICATION OF TI-IE PARCEL TO
BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 1 CAN BE OBTAINED
FROM TFIE EXECUTIVE DIIZECTOR OF THE HRA.
Subsection 6. Pazcel in Acc�uisition. The FIRA may finance all or a part of the costs of
acquisition of the parcels identified in Section 5 of this Taac Increment Financing Plan.
The foliowing are conditions under which properties not designated to be acquired may
be acquired at a future date:
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(1) The HRA may acquire properiy by gift, dedication, condemnation or direct
purchase from willing sellers in order to achieve the objectives ofthe tas
increment financing plan; and
(2) Such acquisitions will be undertaken only when there is assurance of funding to
finance the acquisition and related costs.
Subsection 7. Development Activitv in TaY Increment Financin� District No 1 for
which Contracts have been Signed. The following contracts have been or will be entexed into by
the HRA and the persons named below:
Phase 1 Development:
No development agreements have been entered into at the time the T� Increment
Financing Plan was originally adopted. However, the HRA anticipates entering
into a development agreement with an entity to be formed by Sherman
Associates, Inc. and'Fhe Lander Group (the "Developer") with respect to the
development of a 38 unit owner occupied townhome development and a 114 unit
rental apartment facility.
Phase 2 Development:
No development agreements have been entered into at the tune the Second
A mendment was adopted. However, the HRA anricipates entering into a
u�VB�vyiilBII� a�.�ement `v'Jf u a.Ta �,iiiliy iv u8 fCiiuECi v j� .S}ieiYiin.ia f�SSv�,iHi2o� uiC.
and The Lander Group (the "Developer") with respect to the development of a 38
unit owner occupied townhome development and a 122 unit rental apartment
facility.
Phase 3 Development:
No development agreements have been entered into at the time the Second
Amendment was adopted. However, the HRA anUcipates entering into a
development agreement with an entity to be formed by Ninth Street Lofts, LLC
and Lyons Court Limited Partnership (collectively, the "Developer") with respect
to the development of a 50 unit owner-occupied townhome development and a 60
unit senior rental housing facility respectively.
Subsection 8. Other Suecific Development Exnected to Occur within Redeveloroment
Area.
Although no specific addirional developments have been identified at this time,
the HRA expects that the acquisition and construction of the above housing
development will encourage additional development in the Redevelopment
Project Area.
Subsection 9. Es6mated Cost ofProject. The HRA has determined that it will be
necessary to provide assistance for certain public costs of certain housing activities. To facilitate
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the development of the T� Increment Financing District, tlus Tax Increment Financing Plan
authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The
estimate of public costs and uses of funds associated with Tax Increment Financing Disfrict is set
forth on E�ibit E. Estimated costs associated with Ta�c Increment Financing District are subject
to change and may be reallocated between line items by the HRA. The cost of ail activities to be
financed by the tas increment will not exceed, without formal modification, the budget for the
t� increments set forth on Eachibit E.
Subsection 10. Estimated Amount of Bonded Indebtedness. The IIRA may issue its taac
increment revenue bonds iu an aznount not to exceed $1,283,000 to finance public costs of the
Phase 1 Owner Occupied Development and $1,000,000 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 are applied to the
extra ordinary redemption of the bonds. The expenditures authorized by this Tax Increment
Financing Plan for the Rental DevelopmenY wil� be paid far on a pay-as-yon-go basis.
To finance a portion of the costs of the Phase 3 Rental Housing Development, the HRA
anficipates issuing approximately $I,300,000 in principal a.mount of Tax Increr:�r.t Revenue
Bonds and $825,000 in principai amount of a pay-as-you-go note.
Subsection 11. Sources of Revenue. The costs outlined in Section 9 above will be
financed through the annual collection of t� increments, and the loans or grants given by or
through the City or I as set forth above. The total cost of the Phase 1 Rental Development
and Phase 2 Rental Development are estimated to be approximately $17,000,000, and
$18,180,000 respectiveIy. 1 he total cost of the Phase 1 Owner Occupied 17eve1opment and the
Phase 2 Owner Occupied Development are estimated to be approximately $9,500,000 and
$10,792,000 respecrively.
Additional sources of funds for the Phase 1 Rental Development will be assistance
directly from the Mimiesota Housing Financing Agency in the amount of $70Q000 and from the
Fanuly Housing Fund in the amount of $150,000. The Developer will receive a$450,000 grant
directly from the M3nnesota Housing Financing Agency for the Phase 1 Owner Occupied
Development. The Developer will contribute equity or obtain private financing for the
remaining costs of the Developments.
The total development costs of the Phase 3 Rental Housing Development are estimated to
be $9,702,000. The total development costs of the Phase 3 Ownership Housing Development is
estimated to be $13,357,000. Addirional Sources of funds for the Phase 3 Rental Development
will be a$150,000 Home Loan from the HRA. The remainder of the development costs will be
financed by the Developer from private sources, which may include a tas exempt revenue bond
to be issued by the HRA pursuant to Minnesota Statutes, Chapter 462C.
Subsection 12. Estimated Canhu Ta�c Canacity and Estimate of Tas Increment. The
most recent tas capacity of Taac Increment Financing District is estimated to be $10,577 as of
January 2, 1999. In connection with the additionai property added to the Taac Increment
Financing District by the Second Amendment, the most recent tax capacity is $8,812. In
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connecrion with the property added by the Third Amendment, the most recent taac capacity is
$27,137.
The estimated captured t� capacities of Tax Increment Financing District at completion
of Phase 1 Development and Phase 2 Development is estimated to be $254,812 and $179,400,
respectively. The estimated taa� capacity of the District upon completion of Phase 3 is esrimated
to be $170,363, ofwhich $106,882 is attributable to the Owner-Occupied Aousing Development
and $63,482 is attributable to the Rental Housing Development.
The HItA elects to retain all of the capiured tax capacity to finance tfie costs of Ta:c
Increment Financing District No. i. The HRA elects the method of taac increment computation
set forth in Minnesota Statutes, Section 469.177, subd. 3(a).
Subsection 13. Twe of Tax Increment Financing District. Tas Increment Financing
District No. 1 is a housing district established, pursuant to Muuiesota Statutes, Section 469.174,
Subd. 10, and the Speciai Law, and will satisfy the requirements described below.
The Taac Increment Financing Dishict consists of a project, or a portion of a project,
intended for occupancy, in part, by persons of low and moderate income as defined in Minnesota
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 Tax Increment District must be occupied by individuals whose family
income is equal to or Iess than 50 percent of azea median gross income anci an aciditionai 6u
percent of the units in the development in the Taz� 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 Tax Increment District are not
subject to any income limita6ons. Family income means the median gross income for the area as
determined under section 42 of the Intemal Revenue Code of 1986, as amended. The income
requirements are deemed to be satisfied if the sum of qualified owner-occupied units and
qualified residenrial rental units equals the required total number of qualified units. Owner-
occupied units must be initially purchased and occupied by individuais whose fanuly income
satisfies the income requirements of this subdivision. For residential rental property, the income
requirements of this subdivision apply for the durarion of the Tax Increment Dishict.
The development in the Tas Increment District does not qualify if the fair market value
of the improvements which aze conshucted for commercial uses or for uses other than owner-
occupied and rental mixed-income honsing consists of more than 20 percent of the total fair
mazket value of the planned improvements in the development plan or agreement. The fair
market value of the improvements may be deteimined using the cost of construction, capitalized
income, or other appropriate method of estimating market value.
In establishing Tas Increment Financing District, the detennination 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 taac increment
1555190v2 ()
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financing is deemed necessary. In making this detemunarion the HRA has relied on its own
knowledge of the development history of the azea and on representations made by the Developer.
The HRA and the City haue detemuned that the proposed development of the Tas
Increment District would not reasonably be expected to occur solely through private investrnent
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 t� increment financing would be less than
the increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected taa� increments for the masimum duration of the
district pemutted by the plan.
Subsection 14. Duration of Taac Increment Financing District. The duration of Tax
Increment Financing District will be 25 yeazs from the receipt of the first taac increment. The
date of receipt of the first t� increment is expected to be July of 2002. Attached as E�ibit C-1
is the pro}ected receipt of tax increments from the Phase 1 Development in the Tax Increment
Financing District. Attached as E�ibit C-2 is the projected receipt of taY increments from the
Phase 2 Development in the Ta�c Increment District. Attached as Eachibit C-3 is the projected
receipt of t� ir,crements from the Phase 3 Bevelopment.
Subsection 15. EsUmated Imoact on Other T�ing Jurisdictions. The estimated impact
of Tax Increment Financing District on the other taacing jurisdictions assumes construction would
have occurred without the creation of Taat 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 tasing jurisdictions is $0, due to the fact that the construction would
not have occurred without the assistance of the HRA, the estimated impact of'Pax increment
Financing District would be as set forth on Exhibit D if the "but for" test was not met.
Subsection 16. State Taat Increment Finartcing Aid. Pursuant to Minnesota Statutes,
Section 273.1599, for taac increment fmancing 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, Secrion 2�3.1599, Subd. 6, the I-IRA may choose an
option to the LGA-HACA penalty, Tax Increment Financing Dishict is exempt from the LGA-
HACA reduction if the FIItA elects to make a qualifying local contribution at the time of
approving the Plan. To qualify for the exemprion in each year, the I�ZA must make a qualifying
local contribution to the project of a certain percentage. The local contribution for a housing
district is 5 percent. The maa�imum local contribution for all districts in the City in any yeaz is
limited to two percent of the City's net tas capacity, after which point the HRA must make an
additional contriburion equal to the lesser of (a) 0.25 percent of the City's net ta�c capacity or (b)
3 percent of tax 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 levy, or a federal or state grand-in-aid which
may be spent for general government purposes. The local contribution may not be made,
isssi9o� 7
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directly or indirectly, with taac increments or developer payments. The local contriburion must be
used to pay project costs and cannot be used for general government purposes.
The HI2A elects to make the annnal local contribution to the project to exempt itself
from the LGA-HACA penalty. The F3RA will pay for costs of the project described in this
Plan, in an amount equal to 5 percent of annual ta�e increment for Tas Increment Financing
District, subject to the limitations described above, in any year in which such amount exceeds 2
percent of the City's net tax capacity. Such contribution may be in form of either lump sum or
annual payments (in addition to taz increment payments) towazds costs identified in this Plan or
other costs related to that development. The contribution may also be made in the form of public
improvement financed by the City or other unit of govemment with unrestricted funds.
Subsection 17. Modification of Taac Increment Financing District and/or Tax Increment
Financing Plan. As of August 9, 2000, no modifications to T� Increment Financing District No.
1 or the Tas Increment Financing Plan therefore have been made. On October 25, 2000, the Tas
Increment Financing Plan was amended and restated as set forth herein. On August 8, 2001, and
September 24, 2003, the Tax Increment Financing Plan was amended and restated as set forth
herein.
Subsection 18. Modifications to Taac Increment Financing District.
In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any:
l. reduction or enlargement of the geographic area of the Tas Increment Financing
Disirict;
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 taac capacity to be retained by the HIZA;
4. increase in total estimated taac increment expendihues; 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 approvai of the originai plan.
The geographic area of District may be reduced, but shall not be enlarged after five years
following the date of certification of the original net taY capacity by the county auditor. The
requirements of this paragraph do not apply if (1) the only modification is elimination of
parcel(s) from Tas Increment Financing District and (2)(A) the current net tas capacity of the
pazcel(s) eluninated from the Ta�c Inerement Financing District equals or exceeds the net tax
capacity of those pazcei(s) in the Tax Increment Financing District's original net ta�c capacity or
(B) the HRA agrees that, notwithstanding Minnesota Statutes, Section 469. 177, Subd. 1, the
1555790v2
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originai net taa� capacity will be reduced by no more than the current net tax capacity of the
pazcel(s) eliviinated from the Tas Increment Financing Disirict.
The HIZA must notify the County Auditor of any modification that reduces or enlarges the
geograpluc area of the Ta�c Increment Financing District or the Redevelopment Project Area.
Modificafions to T� Increment Financing District in the form of a budget modification or an
expansion of the boundaries will be recorded in the Tax Increment Financing Plan.
Subsection 19. Admulistrative Expenses.
In accordance with Minnesota Statutes, Secrion 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 architectural and engineering services,
directly connected with the physical development of the real property in the
district;
2. relocation benefits paid to or services provided for persons residing or businesses
located in the district; or
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 planning or economic development consultants. Taac increment
may be used to pay any authorized and documented administrative expenses for the TaY
Increment Financing District up to but not to exceed 10 percent of the total tax increment
expenditures authorized by the taac increment financing plan or the total taac increment
expendatures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, t� increments may be used
to pay for the county's actuai administrative expenses incurred in connection with the Taac
Increment Financing District. The county may require payment of those expenses by February
15 of the year following the year the expenses were inctured.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer sha11
deduct an amount equal to 0.1 percent of any increment distributed to the HRA and the county
treasurer shali 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 tas increment
financing information and the cost of examin;ng and auditing authorities' use of taac increment
financing.
Subsection 20. Limitation of Increment
Pursuant to Minnesota Statutes, Section 469. 176, Subd. 1(a), no tas increment shall be
paid to the I�RA for the Taac Increment Financing District after three (3) years from the date of
�sssi9o�z 9
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certification of the Original Net Tas Capacity value of the taacable property in the Tax Increment
Financing District by. the County Auditor unless within the three (3) year period:
(a) bonds have been issued pursuant to Minnesota Statutes, Section 469. 178, or in
aid of a project pursuant to any other law, except revenue bonds issued pursuant
to Miimesota Stahxtes, Sections 469.152 to 469.165, or
(b) the HRA has acquired properiy within the Tas Increment Financing Dishict, or
(c) the HRA has constructed or caused to be constructed public improvements within
the Tas Increment Financing District.
The tas increment pledged to the payxnent of bonds and interest thereon may be
discharged and may be ternunated 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 certificarion of the original net tax capacity of
the tas increment financing district pursuant to Minnesota Statutes, Section
469.1�7, no demolition, rehabilitation or renovation ofproperty or other site
preparation, including qualified 'unprovement of a street adjacent to a parcel but
not installation of utility service including sewer or water systems, has been
CC^1T.^.�.^.^.C� ^.11 $ ^2:C°.> >CTC2.�u W + ' 41. 41.
Y i,h.i:. a Yz : i:cre:ner.t f�:.anci:.g 3:s:r.c� �y u��
authority or by the owner of the pazcel in accordance with the tas increment
financing plan, no additional t� increment may be taken from that parcel and the
original net tas capacity of that parcel shall be excluded from the original net tas
capacity of the ta�c increment fmancing district. If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or renovataon or
other site preparation on that parcel including qualified improvement of a street
adjacent to that parcel, in accordance with the ta�c increment financing plan, the
authority shali certify to the county auditor that the activity has commenced and
the county auditor shall certify the net taY capacity thereof as most recently
certified by the commissioner of revenue and add it to the original net tax capacity
of tf��e tax increment financing district. The county auditor must enforce the
provisions of this subdivision. For purposes of this subdivision, qualified
improvements of a street aze 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.
Subsection 21. Use of Tax Increment.
The HRA hereby determines that it will use 100 percent of the captured net tax capacity
of taxable property located in the Tas Increment Financing District for the foliowing purposes:
l. to pay the principal of and interest on bonds used to fmance a project;
isssivo�z
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2. to finance, or otherwise pay the capital and adiuinistration costs of the
Redevelopment Project Area pursuant to the Minnesota Statutes, 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;
to pay principal and interest on any loans, advances or other payments made to
the HRA or for the benefit ofRedevelopment 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 Pian 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, ar both.
These revenues shall not be used to circumvent any levy limitations applicable to the
F IIQr fpr pth.P.I t ^.L'.P i ?QS�S t ^,TO�:1 } `2?0ri h� �L*LT:.P.S^tg Ct�fijte3 CPChQ:: 4 .6Q. � 7E� S�1t)�. 4.
Subsection 22. Notification of Prior Pianned Improvements.
The I3KA shall, after due and diligent search, accompany its request for certification to
the County Auditor or its notice of the Taac Increment Financing District enlargement with a
listing of all properties within the Taac Increment Financing District or area of enlargement for
which buiiding 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 �nancing District and found no parcels for which
building permits have been issued during the 18 months immediately preceding approvai
of the Plan by the HRA.
Subsection 23. Excess TaY Inerements
Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in which the tax
increment exceeds the amount necessary to pay the costs authorized by the Plan, including the
amount necessazy to cancel any tas levy as provided in Minnesota Statutes, Section 475. 61,
Subd. 3, the IIIZA shall use the excess amount to do any of the following:
1555190v2
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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. retum the excess to the County Auditor for redistribution to the respective tasing
jurisdictions in proportion to their Iocal tax rates.
In addition, the HRA may, subject to the limitations set forth herein, choose to modify the
Plan in order to finance additional public costs in the Tax Increment Financing District or
Redevelopment Proj ect Area.
Subsection 24. Rec�uirements for A�reements with the Developer.
The fII2A will review any proposal for private development to determine its conformance
with the Redevelopment Plan and with applicable municipal ordinances and codes. To facititate
this effort, the following documents may be requested for review and approval: site plan,
construction, mechanical, and elechical 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 conforxnance 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
3..�7�»gP, Of L�10 �'_Oj)8_T!y tn he grY�,�jlPri Ln �hP'j'a� �rrPmPnt �7in3p�ing l�ichi�t �q ��� fQrfh in thP
Plan shall at any time be owned by the F3RA as a result of acquisition with the proceeds of bonds
issued pursuant to Minnesota Statutes, Section 469. 178, without the I3RA having, prior to
acquisition in excess of 10 percent of the acreage, concluded an ag�eement 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 Taac Increment.
1. General Limitarions. All revenue derived from tax increment shall be used in
acwrdance 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 acquisirion,
conshucrion, renovation, operation or maintenance oF a building to be used
primarily and regulazly for conducting the business of a municipality, county,
school district, or any other locaf unit of govemment or the state or federal
govemment, or for a commons azea used as a public park, or a facility used for
social, recrearion or conference purposes. This provision shall not prohibit the
use of revenues derived from tax increments far the construction or renovation of
a parking stnxchue.
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2. Pooling Limitations. At least 80 percent of tax increments from the T�
Increment Financing Dish must be eacpended on acrivities in the Tax 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 tax
increments may be expended, through a development fund or otherwise, on �
activities outside of the Tax Increment Finaneing Dishict except to pay, secure
payment of, debt service on credit eahanced bonds. For purposes of applying this
restricrion, all aduiinistrative expenses must be treated as if they were solely for
activities outside of the Tax Increment Financing District.
Five Year Limitation on Commihnent of Tas Increments. Tax increments derived
from the Tax 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 iv�innesota Sta#utes, Section 469. 2763, Sabd. 3, has been satisfied; and
begimung with the sixth yeaz following certificarion of the Ta1c Increment
Financing District, 80 percent of said taac increments that remain after
expenditures pernutted under said five yeaz rule must be used only to pay
previously commitment expenditures or credit enhanced bonds as more fully set
forth in Minnesota Statutes, Section 469.1763, Subd. 5.
4. Expenditures Outside District. The Authority hereby elects to spend an addirional
ten percent of the tas increments on activiries located outside the Ta�c Increment
District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d)
provided that the expendihu meet the following requirements:
(1) they are used exclusively to assist housing that meets the
requirements for a qualified low-income building as defined in Section 42 of the
Intemal Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of housing as defined under
Section 42(c) of the Code less the amount of any credit allowed under Section 42
of the Code, and
(3) They are used to (i) acquire and prepare the site for housing, (ii)
acquire, construct or rehabilitate the housing or (aii) make pubIic unprovements
directly related to the housing.
Subsection 26. County Road Costs.
Pursuant to Minnesota Statutes, Section 469. 175, Subd. la, the county boazd may require
the FIRA to pay for all or part of the cost of county road improvements if, the proposed
development to be assisted by taac inerement 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 are not scheduled within the next five years under a capital
improvement pian or other county plan.
isssi9o�.z
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In the opinion of the HIZA and consultants, the proposed development outlined in this
Pian will 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.
Subsecfion 27. Assessment A.greements.
Pursuant to Miunesota Statutes, Secfion 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 m;n;mum market value of the land and completed improvements for
the duration of the Taz Increment Financing Distdct. The assessment agreement sha11 be
presented to the assessor who shall review the plans and specifications for the improvements
constructed, review the mazket 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
assessmenY agreement appeaz, in the judgment of the assessor, to be a reasonable estiruate, the
assessor may certify the minunum mazket value agreement.
Subsection 28. Administration of the Tas Increment FinancinQ District
Administration of the Tax Increment Financing District will be handled by the Executive
Director of the HRA.
Subsection 29. Financial Reportine Requirements.
The IIRA will comply witk all reporting requirements of Minnesota Statutes, Section
469.175 Subd. 5 6 and 6a.
1555190v2
14
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EXHIBIT C-1 b3-��3
Assum Eions Re ort
City of St Paui, Minnesota
^ Proposed Tax Increment (Redevelopment) Financing District
North Quadrant (Sibiey Park) Nousing Development
Scenario A- Phase One Totai Project (26 years, 8% note)
Type of Tax Increment Financing Distric[
Maximum Duretion oF TIF District
Certification Request Date
DeceRification Date
Base Estimated Market Value
Times: First $0
Excess
Original Net Tax Capacity (1)
Base Estimated Market Value
Increase in Estimated Market Value (1)
Total Estimated Market VaWe
Times: First $�
Excess
Totat Net Tax Capacity (1)
Base �nflation Factor
Local Tax Capacity Rate
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
City Tax Rate (Only if Local-Effori TIF)
Bonds
Bonds Dated
Ficst Interest Date
Underwriters Discount
0.00 %
0.00%
Fedevefopment
25 years from 1st increment
09/01/00
12/Ot/27 (26 Years of Increment)
2000l2001
$683,500
0
0
$10,577
AssessmenUCollection Year
2001/2002 2002/2003 2003/2004 2004/2005
$683,500 $683,500 5683,500 $683,500
2,000,000 15, 065,744 15,065,744 15, 065,744
$2,683,500 $15,749,244 $15,749,244 $75,749.244
r
Q.00% 0 0 0 0
0.00% D 0 0 0
NA
NA
NA
LGA/NACA Loss:
Will Annual Local Contribution Be Made (Yes or No)? (2)
I.S.D �625 E4ualized Tax Capacity Rate
I.S.D k625 Sales Ratio
City Sales Ratio & Taxable Net Tax Capacity
Present Value Date & Rate
Yes
NA
NA
NA
09/O t /00
09lOtl00
S.oO /
NA
5.00%
(t ) See "Schedule of Project Values" for calcutation of Market Va�ues and Net Tax Capacities.
(2) Assumes a�nual contribution will be made upfront and wil� not be availabie tor debt service.
Prepared by: Springs[ed incorporated (prinled on 06/28(2000 at 321 PM}
^�41,527 $265,389
5265,389 $265,389
NA
146.553% (Payabfe 2000)
0.0000% (NA for Housing)
10.00%
0.00°l0
NA
Note (Pav-As-You-Go)
Note Dated
Note Rate
Tif0628a.xls
(� 3- $'�(�
Market Value Analysis Report
City of St. Paul, Minnesota
�' Proposed Tax increment (Redevelopment) Financing District
North Q�adrant (Sibley Park) Housing Development
Scenario A- Phase One Totai Project (26 years, 8% note)
Assumotions
Present Value Date
P.V. Rate - Gross T.I.
Increase in EMV Wiih 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
}�
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
09/Ot/00
8.00%
$i s,oss,�aa
3,481,295
$71,584,449
$11,584,449
Annual Present
GrossTax Value �
Year Increment 8.00%
2002 45,977 39,786
2003 378,531 298,569
2004 378,537 276,453
' 2005 378,531 255,975
2006 378,537 237,014
2007 378,537 219,457
2008 378,531 203,201
2009 378,531 . '188,149
2010 378,531 174,272
2017 378,531 161,308
2012 378,535 149,359
20t3 378,531 138,295
2014 378,531� 128,051
20t5 378,53t tt8,566
2016 378,531 109,783
2017 378,531 501,65t
2018 378,531 94,121
2019 378,531 87,149
2020 378,531 80,694
202t 378,531 74,777
2022 378,531 69,182
2023 376,531 64,05�
2024 378,531 59,372
2025 378.531 54,919
2026 378,531 50,851
2027 378,531 47,084
$9,509,252 $3,481,295
Prapared by: Springsted �ncorporated (O6/28l2000)
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EXHIBIT G2
Assum tions Re ort
'"' City of St Paul, Minnesota
Proposed Tax increment (Housing) Financing District
North Quadrent Phase Two
Scenario A- Phase Two Total Project (26 years, 8% note)
Type of Tax Increment Financing District Redevelopment
Maximum Duration of TIF D'istrict 25 years from 1st increment
Certification Request Date
Decertification Date
Base Estimated Market Value
Times: First $0
Excess
Original Net Tax Capacity (1)
Base Estimated Marke[ Value
Increase in Estimated Market Vaiue (1)
Total Estimated Market Value
Times: First $0
Excess
Total Net Tax Gapacity (t)
Base inflation Factor
�ocal Tax Capacity Rate
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooling Percen4
City Tax Rate (Oniy if Local-Effort TIF)
Bonds
Bonds Dated
First Interest Date
Underwriters Discount
NA
NA
NA
$30,677
NA
�36.762% (Payable2001)
0.0000% (NAfor Housing)
10% (See Note #3)
0.00%
NA
Note (Pav-As-You-Go)
Note Dated 08/01/01
Note Rate 8.00%
C�3
0
$188,212
lGA/HACA Loss:
Wili Annual Local Contributlon Be Made (Yes or No)? (2� Yes
I.S.D #625 Equalized Tax Capacity Rate NA
I.S.D #625 Sales Ratio NA
Ciry Sales Ratio & Taxabfe Net Tax Capacity NA NA
Present Value Date & Rate OB/O�i01 5.00°/,
(1) See "Schedule of Project Values" for calculation of Market Values and Net Tax Capacities.
(2) Assumes annual contribution wiil be made upfront and will not be available for debt service.
(3) Assumes admin. retainage of'10% on apartments, townhomes and retail space.
Preparzd by: Springsted Incorporated (printed on 6l28/Ot at 1:A4 PM)
0 0
0 0
$188.212 $188.212
OS/01/Ot
12/01/28 (26Years of Increment)
2001/2002
$806,000
0.00% �
0.00% 0
$8,812
AssessmenVCollection Year
2002/2009 2003/2004 2004/2005 2005/2006
$806,000 $806,000 $SO6,OOD $SD6,000
2,000,000 16,738,822 16,738,822 16,735,822
$2,806,000 $17,544,822 $17,544,822 $17,544,822
0.00% 0
0.00°l0 0
Phase 2 062701 a2 - 16% admin
Market Value Analysis RepoR
�.
�� City of St. Paut, MinnesoW __
Proposed 7ax Increment (Fiousing) Financing District
North Quadrant Phase Two
Scenario A- Phase 7wo Total Project (26 years, 8% rtote)
Assumotions
Present Value Date 08/01/01
P.V. Rate - Gross T.I. 8.00%
Increase in EMV With TIF District $16,738,822
Less: P.V of Gross Tax Increment 2,242,119 �
Subtotat $14,496,703
Less: Increase in EMV Without TIF _ 0
Difference
$14,496,703
Annual Present
Gross Tax Value @
Year increment 5.00°!0
1 2003 29,903 25,310
2 2004 245,351 192,285
3 2005 245,351 178,042
4 ` 2006 245,351 164,854
5 2007 245,351 152,642
6 2008 245,351 141,335
7 2009 245,35'! 130,866
8 2Q10 245,351 421,172
9 2011 245,351 112,197
10 2012 245,357 103,886
11 2013 245,351 96,190
12 2�14 245,351 89,065
13 2015 245,351 82,468 �
14 2016 245,351 76,359
15 2017 245,351 70,703
16 20i8 245,357 65,466
17 2019 245,351 60,616
18 2020 245,351 56,126
19 2021 245,351 51,969
20 2022 245.351 48,i19
21 2023 245,351 44,555
22 2024 245,351 41,254
23 2025 245,351 38,199
24 2026 245,351 35,369
25 2027 245,351 32,749
26 2028 245,351 30,323
$6,163,678 $2,242,119
03 - �`�3
Prepared by: Springsted Incorporated (6l28/01)
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EXHIBIT C-3
Assum tions Re ort
City of St. Paul, Minnesota
Tax Increment (Housing) Financing District No. 1
North Quadrant Phase Three - Preliminary Projections
Scenario A- Phase Three Total Project (25 years)
Type of Tax Increment Financing District
Maximum Duration of TIF District
Projected Certification Request Date
Decert�cation Date
Base EMV - Rentai
Base EMV - Owner-occupied
Total Base EMV
Original TC - Rental
Originai TC - Owner-occupied
Total Qriginal TC
Base Estimated Market Value
Increase in Estimated Market Valus
Totai Estimated Market Value
TNTC - Rental
TNTC - Owner-occupied
Total Net 7ax Capacity
Redeve{opment
25 years from 1 st increment
10/01l03
12i31/27 (22 Years of Increment)
2D03/2004
$321,474
2,311,826
2,633,3�0
4.018
$23,118
27.137
AssessmenUCollection Year
2003/2004 2004/2005 2005/2006 2006/2007
$2,633,300 $2,633,300 $2,633,300 $2,633,300
0 0 14,226,70C 15,766,700
$2,633,300 $2,633,300 $16,860,000 $18,400,000
4,018 4,018 60,750 67,500
23,118 23,118 120,000 130000
$27.137 $27,137 $180,750 $197,500
City of St. Paul 37.919%
Ramsey County 50.089%
ISD #625 33.349%
Other 9 073%
Local Tax Capacity Rate 130.430% 2002/2003
Fiscal DispariGes Contribution From TIF District
Administrative Retainage Percent (maximum = 10°/ )
Pooling Percent
Bonds
Bonds Dated
Bond Issue @ 6.84% (NIC)
Eligible Project Costs
1�/�1l03
$1,385,000
$1,125,248
Present Value Date & Rate
Notes
Prepared by: Springsted incorporated (printed on 8/21/2003 at 624 PM)
0.0000%
10.00°l0
0.00%
Note (Pav-As-You-Gol
idofeDated 10/0�103
Note Rate 6.76%
NoteAmount $7t5,00Q
10/Ot/03 5.00%
r' • �
Phase 3 - NQ (8-21-03).xlsAssumptions
o ��'C
Original NetTax Capacity
Saint Paul North Quadrant - Phase Three
Parcel Descriptions
312922410031
312922410030
Taxable
Mkt Value (bl
2,200,000
433,300
2,633,300
Use Allocation Footorint % of Totaf °/a of Base MV
Owner-Occupied N/A '100.00% 2,200,000
Rentaf 74,022 74.19% 321,474 "
Owner-Occupied 25,749 25.81% 111,826
Total 99,771 100.00°fo 433,30Q
- Lyon's Court
-Occuoied - 9th Lofts
Assess Value Net Tax Ca�
321,474 4,018
2,311,826 23,718
2.633,300 27.137
Notes:
The base vafue of PiD 312922410030 is spiit between rentai and owner-
occupied because the 9th Street parking garage will be built beneath the Lyon's
Court project. The estimated split based on square feet is shown.
Prepared by: Springsted incorporated (printed on 8/21/2003 at 6:24 PM) Phase 3- NQ (8-21-03).xls
Schedufe of Project Vafues
Saint Paul North Quadrant - Phase Three
Rental
Owner
Retail
Rentaf
Owner-occupied
Retail
Owner-occupied - First $500,000
Owner-occupied - Excess Value
Retaif - First $150,000
Retail - Excess Value
Rental
2004
0
0
0
2004
321,474
2,311,826
0
125%
1.00%
1.25%
1.50%
2.00%
2004
4,018
23,118
2005 2006 2007
4,860,000 5,400,000 5,400,000
12,000,000 13,000,000 '13,��0,0�0
0 0 0
16,860,000 18,400, 000 18,400,000
2005 2006 2007
4,860,000 5,400,000 5,400,000
12, 000, 000 13, 000, 000 13, 000, 000
0 0 0
16,860,000 18,400.000 18.400.000
2005
60,750
120,000
0
2006
67,500
130,000
0
2007 % of 7otal
67,500 34.18%
130,000 65.82°/a
0 0.00%
197,500 100.00%
C�3-��
Prepared by: Springsted Incorporated (printed on 8/21/2003 at 624 PM) Phase 3- NQ (8-21-03).xis
Pro'ectedTaxlncrementRe ort
Miwal
Periab
Entlmg
12131/03
12f31N4
1Z31/0.5
12/31106
1213110T
12I3V08
12I31/09
t2/31I10
1T/31/11
t231/12
12/31113
1213t/14
1231115
1I/3t/16
tP/31/1l
1P/31H8
1�/31/19
12I3120
t2/3121
11/31/22
izr,�ina
t2131/24
12I31125
12/3126
12I31/2]
12/31/28
iZ3129
tP/31/30
12J1/31
Total
Net Ta<
CaPaary
2J.13J
2T.13I
2]p3]
iao.�so
19].SW
t9].500
19].500
19].SOp
t9],500
197,500
19],500
t9],500
t9],500
1 W.500
191.500
191,500
19],500
19],500
19].500
19],500
t9],500
19],500
19].SOp
19].5pp
19].500
197.500
197,SW
19],500
1 W,500
Less
Original
NetTax
Capaary
21.13]
2I,131
2].131
z).ta7
2T.13]
2].13]
2].13]
21.t3]
2].13]
2�,13]
21.13]
27.13]
2].13]
2].13]
2],13]
21.t3]
2].13]
2].13]
9.13]
2].13]
2�.13]
21.13]
21.13]
2].13]
2].13]
19],500
19],500
19],500
191.50p
Preparetl by. Sprin9stetl InwrporateG (printed on 8212003 at 624 PM)
Ciry of SL Paul, Minnesota
Taoc Inerement (Nousing) Rnancing DisUie[ No. t
North Quadrent Phase Three - Preliminery Projections
Scenario A- Phase Three Total Project (15 years)
Less: Retained Tmw:
Fscal Capture0 Tax Mnw�
Disp.@ Net7ax Capacity GmuTax
O.00pp% Capaary Rate Inaement
0
�
0
0
U
0
0
d
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
t53,613
1i0,363
1]0.3G3
110,363
1T0.3G3
1]0,363
R0,363
1]�,363
1]0,963
t]0,963
110.3fi3
i]0.363
1]0,363
t]4,363
1]0,363
1]0,363
t]0,363
1]0.363
1]p,363
i]0,363
1]0,363
1]0.363
0
0
0
0
0
0
0
200,358
222.205
222.205
zzz,zas
222.205
222,205
222.2p5
222.205
2z22o5
212.205
222.205
222,205
222.205
222,205
2T2205
2?2,205
212 205
222.20.5
222.205
zu,zos
2222Q5
222.205
0
0
0
Less:
Sta@ Aud.
Detluctlon
0.360%
0
0
�21
800
800
800
800
800
800
800
800
80p
ECO
80p
800
80p
800
800
8W
800
600
aoo
800
800
0
0
0
$t].521
Less:
Atlmin.
Retainage
10.00%
0
0
0
19.%4
22.t4t
22.14t
22.141
22.t4�
22,141
22.141
22.141
22.741
22.141
22.t45
22.141
22.14�
22,t41
22.141
22.141
22,14t
22.141
22.141
zz.�a�
Y2.141
22.iPt
$484.925
i�.�
Annuai
Net
Revenue
0
D
0
1]9,613
199.268
i9926a
189.264
t99.264
199.264
199.261
t93.264
t99.260
199264
t93,264
199,264
199,266
193.261
199.2G4
t99.260
19926M1
199.264
t89.264
199.264
199.264
199.269
0
0
0
Phase 3- NQ (&21N).xls
Pro ected Tax Increment Re ort
Ciry of St. Paul, Minnesota
Taz Increment (Housing) Financing District No. t
NoRh Quatl2nt Phase Three- Preliminary Psojections
Scenario B: Rental Portion of Project Onty
Less:
Mnual Tobl O�ginal
Periotl NetT� NetTae
Ending Capaciy Caparity
12/31/03
12i31ro4
1T131105
12/31/O6
t2i3V0!
11J31/OB
12/311p9
1P/3fA0
iL31/11
14/31/12
t2/31/13
R/31/i4
12731115
12/31/i6
12/31A9
12/31/t8
t2/31/19
iva�au
12/3121
12/31/P2
12/3123
11/31/26
ivains
t?13126
12/3t2�
t2f31R8
12/31/29
12/3180
t2/31/31
4,Ot8
4.018
a,ais
60,]50
6�,50p
6],500
6],500
6],500
6],5p0
61,500
6�,500
6],500
6],500
6],500
6],5p0
6],500
6�.500
s7,soa
6),500
6�,500
6/.500
6],500
6),500
6],500
6],5p0
6I,500
6],500
6],500
6],500
4.Ot8
4.018
4,018
a,018
A,O18
4.018
4.018
4,018
4.Oi8
4.p18
4.018
4.Ot8
4,018
4.018
4.018
4,018
4.Ot8
4.018
4.018
4.018
4,018
4,018
4.Ot8
4,018
apie
6T,590
6],SW
6],500
6],500
Praparetl py, Springsted Inmrporatetl (printetl on 8212�p3 at 624 PM)
Less: Refained Times_
Fiscal Caplured Taz
Disp @ NatTax Capadry
0.0000% Capacity Ra[e
0
0
0
0
0
0
0
0
0
56,]32
63,A82
63,482
63482
63,482
63,482
63 482
63 482
63.482
63 482
63 d82
63.d82
63,482
63.482
63.682
63,482
63.482
63.482
63,482
63,482
63.482
63,482
0
0
0
0
Mnual
Gross Taa
Inaement
0
0
0
73.995
82.199
82.]99
82.199
82.]99
82.]99
82.193
82.199
82,]98
82.199
82 ]99
82.199
82.]A9
82.]99
B2,]99
82.199
82.199
82,]99
82.]99
82.199
82.]99
82,]93
0
0
0
Less:
SfaleAUd.
Detluction
0.360%
0
0
0
266
29B
296
298
298
288
298
298
298
298
298
298
298
298
292
298
298
298
298
298
298
298
0
0
0
Less.
MINR
Retainaqa
10.00%
0
0
0
],3]3
8,250
8,250
82so
8,250
8.250
8250
8,250
ezso
8,250
8,250
8 25a
8,250
8,250
8,250
8,250
8,250
8,250
8,250
8 250
8,250
8,250
0
0
0
$6,524 $180,6Y3
a3� �'c�
��
Net
Revenue
0
0
0
66,356
]4.251
]4.251
]4,251
]4,251
]4.251
74.25t
]4251
�a,zs�
]4,251
P4,251
T4,251
]4.251
I4.251
]4251
14.251
]4.?5t
]4.251
]4,251
T4,25t
]a251
74.25t
0
0
0
PM1ase 3- NO (&21-03).xS
(�� - 8'C�
Pro ected Tex Increment Re ort
Mnual
Periotl
EWUg
12/31/p3
izravoa
t2131l05
12131(p8
12131/0�
ivavroa
1I131109
izravm
12/31/ii
12/31/12
tZ31/13
12/31/14
12/31/15
iT/31/16
12l31/1]
12/31/18
12�31/t9
12l31l20
12/31/2t
�vatrz2
12r31i23
ivsina
12/31125
12/31/26
12/31/27
12/31/28
1�/31R9
tY5130
12131/31
TotaV
Net Ta<
CapacAy
23.118
23.118
23.118
120,U�0
130,00�
130,000
130,000
�so.aao
130,000
130,00�
130,000
t30,000
130,000
130,Op0
130,000
130,000
130,OD0
130.OUa
130,000
130,000
130,000
130,000
t30,000
130,000
130,000
130,000
130,000
130,000
130,OW
�ss:
Onginal
Net Tm�
Capecity
23.118
23,118
23,118
23.ite
23,118
23.118
23.158
2s.na
23.118
23.116
23.118
23,H8
23.118
23.118
23,t18
23,110
23,ti8
23,tt8
23,118
23.116
23,tt8
23,t18
23,118
23.118
23.118
130,000
130.000
t30,000
130,000
Preparetl by:5pringstetl InrorporateU (priMetl on 8/212003 at624 PM)
Gity of St. Paul, Minnesote
Tax lncrement (HOUSing) Flnancing District No. t
North Quadrant Phase Three - Preliminary Prqse[ions
Scenario G: Owner-Oaupied Portion of Prq¢ct Only
Less: Refainetl Times:
Fiscal CapNretl Tax Mnual
DisD� @ Nat Tax Capacily Grws Taa
0.0900% Capacity Rate InuemeM
0
0
0
0
a
0
0
0
0
a
0
0
0
0
0
0
0
�
0
0
0
0
0
D
0
0
0
0
0
0
0
0
96.882
106,882
106,882
1p6.882
10G.682
106,882
106,882
106,882
106.882
106,882
106,882
tO8.B82
106,882
106,882
1a6,882
106,882
106,882
tD6.882
106,682
106,882
106.882
106,882
0
0
0
0
0
0
126,363
139,406
139,406
t39.406
139,406
139,406
139.40G
139,4�6
139.406
139,406
139,d06
139.406
139,406
139.406
139.406
139.406
139,4W
t39,4G8
139,406
139,406
t39.406
139.4W
0
0
0
LE55: I25S:
StateAUC. AEmin. Mnual
DetlucTOn Retainage Net
D.360% 'fO.ODYo Revanue
0
0
D
455
502
502
502
502
502
W2
502
502
502
502
502
5p2
502
502
502
502
502
502
502
502
502
0
0
0
0
0
0
+zss�
13,880
13,890
t3,890
13,890
13,890
13,890
13,890
13,890
13,890
13,&90
13,890
13,890
13,890
13,890
13,890
13,890
13,&9D
13.890
13.890
13,890
13,890
0
0
0
0
6
0
t13,31T
izs,Ota
125.014
t25,Ot4
125,014
125.014
125.014
125.014
125,014
125,054
125.Ot4
125.Q14
125.014
125,014
125.Ot4
iu,oia
125,a14
125,Ot4
125,Ot4
125.014
125,014
0
0
St0.99J $304.281 � $2.]38.611 �
Phase 3 - NQ (8-21-03}xis
i
Pro ec[ed Pa -As-YOU-Go Note Re ort
Cityof St Paul, Minnesota
Taz Inerement (Housing) Financing District No, t
North Quadant Phase Thrae - Preliminary Projections
Scenario B: Renbl Portion af Prqec[ Only
NotsDate: t010t103
Note Rate: 6.]6%
A'm�mL $]15.000
Sem4Mnua1
Net CapiUfized
Date Priridpal Interest p81 Revemie Interest
02IOt104 0.00 0.00 0.00 0.00 16,1N33
OS/Ot106 0.00 0.00 0.00 0.00 24,]1156
02/Ot/OS 0.00 p.00 0.00 UAU 25,566.flt
08/Ot/OS 0.00 0.00 0.00 0.00 26,4t0.30
02/01/O6 0.00 0.00 0.00 O.W 2],302.96
OB/01/O6 d,95220 28,225.80 33,1�800 33,t]8.00 0.00
02)OtiO] 5,119.58 28,058.42 33,778.00 33,1]8.00 0.00
08/Ot/W 9,2d042 2],885.36 3],t25.50 37,125.50 0.00
02/01/�8 9,552.4d 2P,5]3.06 37,125.50 3],125.W 0,00
OB/Oi/OB 9,875.3t 27,250.19 3],12550 37,t25.50 0.00
02101/09 10,209.10 26,916.40 3],125.50 3],125.50 0.00
OB/Ot/09 1U,554A6 26,5]134 39,125.W 37,125.50 000
02/Ot/t0 10,910.89 26,214.61 3],125.50 3],125.50 0.00
0&�1I10 it,2Y9.68 25,%582 3],125.50 3],125.50 O,W
O1101/it t1,66094 25,466.56 3],125.50 3],125.50 0.00
o�ov�i iz,oss.oa zs.mo.az a�.�2sso a�,izsso o.ao
02/O1/12 12/}6254 24,662,96 37,125.50 3],t25.50 0.00
08/Ot/12 12,883.]] 24,241.73 3],1255� 3],125.50 0.00
0901/13 13,3t924 23,80628 3],t25.50 37,125.50 0.00
OB/Ot/t3 73,769.43 23,356.0� 3J,t25.50 3],125.W OA�
02/Oi/14 14,234.84 22.890.66 31,12550 3].12550 QAO
OB/01/14 14,7t5.98 22,409.52 3],125.50 3T,t25.50 0.00
02/Ot/15 152t3.38 21,91242 3],125.50 3),125.W 0.00
OB/Oil�S t5,72]S9 27,39].97 37,125.50 3],125.50 000
OZOtlt6 �6,259.58 20,866.32 3],125.50 37,125.50 0.00
08/01/16 16,808]4 2D,31676 37,125.50 3],125.50 0.00
0?/01/t] 77,3�6.88 19,]48.62 3],t25.50 37,125.50 0.00
0&Ot/'I� i],96422 t9,t6128 31,125.50 3],125.50 p,00
02/01/18 18,5/t.41 18,55J.p9 3],125.50 31,125.50 0.00
08/Ot/18 19,199A2 1],926.38 3],725.50 3],12550 000
02/07/19 19,848.05 1],2]].45 3],t25.50 3],'12550 p,p0
08/OtH9 20,518.91 t6,606.59 37,125.56 3P,t25.W 0.06
ODOi/20 21212.45 15,913.05 3],125.50 3],125.50 0.00
08/01/20 21,929.43 15,196.07 37,t25.50 37,125.50 0.00
02/01121 22,670b5 14,454.85 37,12550 3],125.50 0.00
OB/Ot/21 23,436.92 t3,688.58 3],125.50 3],125.50 p.p0
07JOt/22 24,Z29.09 t2,896.41 3],125.50 3],12550 0.00
0&OtY12 25,0a6.03 12,0]]4] 3],t25.50 3],125.50 0.00
02/01/23 25,896.65 11,230.85 3],t25.50 3➢,125.50 ODO
08/OV23 26,�69.89 10,355.61 3�,12550 31,125.50 0.00
02101/26 2],614.71 9,650.]9 3],12550 3],'125.50 0.00
08/07/24 28,61042 8,515.38 3],t25.50 3),12550 0.00
�2IOM125 29,STTd4 i,548.36 31,�25.50 3],t25.50 000
08101@5 3q5�6.85 6,548.65 3],125.50 3],t25S0 0.00
02/01/26 31.670.35 S,St5.15 37,12550 3],t25.50 0.00
0&Ot/26 32,6]6.78 4,446]2 3],12550 3],125.50 0.00
02/Ot/2� 33,78332 3,342.18 3],125.50 3],12550 0.00
08/O12] 34,92549 2,200.31 31,125.50 31,125.5p 0.00
02/Oi/28 30.172.61 t.019.83 31.192.44 31.t92.44 0.00
OB/0128 0.00 0.00 0.00 O.UO p.p�
02/0'I/29 0.00 000 p.00 0.00 0.00
oeroiru o.00 o.00 o.00 o.00 0 00
ovo�no o.00 o.00 o.00 o.00 o.00
oero�rao o.00 o.00 o.00 o.00 o.00
02/01/31 0.00 D.00 0.00 0.00 0.00
$835.083 $]84,610.98 $i,6t9,693.94 $t,619,693.96 $t20,082.96
Surylus Tax inaement 5.933.06
TohlNetRevenue $1,625,69.00
Prepared by: Sprirgstetl inwrporztetl (prinietl on &212003 at 624 PM)
�3 �'C�3
loan
Balae�ce
o„n��a��y
�is.000.00
731.11133
755,822.89
T8t.3G9.70
&1�.�60.00
835,082.96
830,13016
825.011.18
815.771.06
806.218.62
796,393.37
786.1342t
7/5,580.�5
764.669.16
]53,389.a8
�a�.ne sa
]29,6]3.46
71].210.92
704.32].75
691.00].91
6T1,238.48
663,W3.64
668,28].66
633,0)428
61].346.69
601,08].51
584,2T8.1]
566,901.89
548,931.6]
530,36526
511.t67.14
491.319.09
470.800.t8
449.587.]3
427.658 30
404,99].65
381.550.]3
357.321.64
332,273.67
306,318.96
2�9,609.O1
251.934.36
223,32424
193,]d]d0
t63.t7025
131.559.90
98.881.12
65,09180
30,t]2.67
0.00
0.00
0.00
o.00
o.ao
o.00
0.00
Phase 3-NO (&21�03)x�s
63
City of St. Paui, Minnesota
Tax Increment (Housing) Financing District No. '1
NoRh Quadrant Phase Three - Preliminary Projections
Scenario C: OwnervOccupied Portion of Projed Only
Mnual Mnual
Period Tax-Exempt Capitalized Net Mnual Cumulative
Ending Principal Rate Interest P& 1 Interest Revenue Balance Balance
- - (i) (2) (3) (4) (5) (6) (7) (8) (9)
02/01/04 0 6.75% 31,163 31,163 31,200 0 37 37
02I01/05 0 6.75% 93,488 93,488 93,500 0 �2 49
0?J07f06 0 6.75% 93,488 93,488 g3,500 0 12 61
0?)01707 �5,000 6.75% 93,488 108,488 0 173,317 4,829 4,890
02/Ot/OS 30,000 6.75% 92,475 122,475 0 t25,014 2,539 7,429
02107I09 35,000 6.75°Jo 90,450 125,A50 0 125�014 (436) 6.993
OZ/01l10 35,000 6.75% 88,088 123,088 0 125,014 1,926 8,919
02/D1/11 40,000 6.75% 85,725 125,725 0 125,014 (711) 8,208
02J01/12 40,000 6.75% 83,025 123,025 0 125,014 1,989 10,197
02/01/13 45,000 6.75% 80,325 125,325 0 125,014 (311) 9,886
02/01/14 45,000 6.75% 77,288 122,288 0 125,014 2,726 12,612
02l01/15 50,000 6.75% 74,250 124,250 0 125,014 764 13,376
02J01/16 50,000 6.75% 70,875 120,875 0 125,014 4,139 �7,515
02I01/17 55,000 6.75% 67,500 122,500 0 125,014 2,514 20,029
02/Ot/18 60,000 6.75% 63,788 123,788 0 t25,014 1,226 21,255
02/01/19 65,000 6.75% 59,738 124,738 0 �25,014 276 21,531
02/01/20 70,000 6.75% 55,350 �25,350 0 125,014 (336j 21,195
02/01/21 75,000 6.75% 50,625 125,625 0 125,Ot4 (611) 20,584
02/01/22 80,000 6.75% 45�563 125,563 Q 125,�14 (549) 20,�35
02/0ll23 85,000 6.75% 40,163 125,163 0 125,014 (149) 19,886
02/0�/24 90,000 6.75% 34,425 124,425 0 125,014 589 20,475
0?J01/25 95,000 6.75% 28,350 123,350 0 125,014 1,664 22,139
02/0�/26 t00,000 6.75% 2�,938 �21,938 0 125,014 3,076 25,215
02/0�/27 110,000 6.75% 15,188 125,188 0 125,Ot4 (174) 25,041
02l01l28 115,000 6.75% 7,763 122,763 0 M125,014 2.251 27,292
02/01/29 0 6.75% 0 0 0 0 0 27,292
OZ/01730 0 8.75% 0 0 0 0 0 27,292
02/01/31 Q 6.75% 0 0 0 0 0 27,292
Dated Date
First Interest Date
Bond Years
Average Maturity
Mnusllnterest
Discount
Net Interest Cost
Net Interest Rate
Projected Bond Cash Flow Report
$1,385,000
10/01/03
02/01/04
22,881.67
16.52
$t,544,519
1.50% $20,775
$1,565,294
6.841°/
Prepared by: Springsted Incorporated (prtnted on 8/21/2003 at 624 PM)
$1,544.519 $2,929,519 $218,200 $2,738,611
� Project Costs
lized Interest
writers Discount
of Issuance
Bondlssue
$27.292
$1,125,248
218,200
20.775
zo,n�
0
0
$'1,385,000
Phase 3 - NQ (8-21-03).xls
EXHIBIT D-1
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EXHIBIT D-3
Estimatetl Im act on OtherTaxin Jurisdictions Re ort
City of St Paul, MinnesoW
Tax Increment (Housing) Financin9 District No. t
North Quadrane Phase Three - Preliminary Projections
Scenado A- Phase Three Total Project (25 years)
W iNwt
Praect a?M1F Distnd W iih Proiec[ and TF O sVict
2002/2003 20022003 Rean� New Hypolhetical HypoNetical Tax
TaraNe 2002/2003 Tarable CapWretl Tau6le Ad'yusta�l Dsreauln byRMai�mtl
NdT� Locat NetTax NMTax NetTa< Local Locai Caotumi
CiryNSt.Paui
Rarnsey Counry
ISD #625
Other(2)
To1Ns
168.0]4]]6
353,22],911
16],800,339
3]919% 168.0]4.]]6
5�.089% 353,221,911
33.349°h 161,880.339
9 �]3% —
130a30Yo
$V0.363 168,245,139 3].881 0
110,363 353,398,274 50065%
i]0,363 168,05Q]a2 33.315%
1]0.363 — 9.013%
13pS34°Jo
5[atemeik 1: If the prqecte� RetainEd CapNred NM Tae Gapaaty of [�e TIF DisMCI was hypothehcaliy availaPle to each of
Ne bv�9 juristl�ctiws ahwe. the resultvwWtl be a bwer tocal tar rate (see HypINheUCal Adrysted Ta,� Rate above)
which waultl protluce the same amwr�t M [a�es for each IainngjunstlkLOn. In such a case, the totai Iacal �ax rdte
would tlecreaze Ey 0 096%(see Hypothe6cal Decrease in Lecal Ta<Rate above). The hypothetical fax Nat fhe
Retaincd CapNretl Net Taz Capaciry N fie TIF Dis�nct vrouitl generate is aiso shown abwe
Statement 2: Since [he pro�ectetl Retainetl CapWretl NMTaz Capacityof Ihe TIF District is nd available to the tawng juristl¢tions,
Nen �here 5 no impact on tates lenetl a local t� rates
(1) T�ab�enetiaxcapaciry=lotalnHtaxcapaciry-capfuretlTlF-GSCaldrspanrycontnbvuon,itapplicable
(2) TheimpactonNesetavng�urisdctionsisnegligiWesinceNeyreprwentonly696%otthetoWkuate.
0 038%
0024%
a oYl%
609G%
64,535
&5,292
5G.i5]
03-��3
Preparetl by: Springsted Incorporeted (8/22/2003)
EXHIBiT E
w000000o m c�000�00000co�rn rn
m000000o rn monorinoroovva� o�
c� O O O O O O O r O O N O[t I� N N O N N � r �
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63-��
.
r
/+. . _a•
HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA
REPORT TO T{iE COMM{SS{OfVERS
DATE August 27, 2003
REGARDING RESOLUTION TO APPRO�/E PREPARATION OF A 3 AMENDMENT TO
THE TAX INCREMENT FINANCING DISTRICT NO. 1(NORTH
QUADRANTt; SCHEDULE A PUBLIC HEARING TO SELL PARCELS;
AND APPROVE TERMS AND CONDITIONS OF CONTRACTS FOR
LAND DISPOS{TION AND DEVELOPMEi11T OF PARCELS LOCATED AT
215 EAST 9 STREET AND 230 EAST 10 STREfT; DISTRICT 17
Purpose
Staff is requesting the Boazd of Commissioners to consider approval of the following actions
enabling the proposed development of the 50-unit 9th Street Lofts for-sale housing project
located at 215 East 9�` Street and the 60-unit Lyon's Court senior rental housing project located
at 230 East l Othe Street in the North Quadraut:
1. Authorize staff to prepaze an Asnendment to the Tas Increment Financing District No1
(North Quadrant) (District), which will expand the District to include the above described
properties and provide a means to finance the Lyon's Court senior rental housing
development ; and
2. Authotize staff to schedule a public hearing to sell the prope�ties located at 215 East 9�`
Street and 230 East 10`" Street to Sherman Associates, Inc., or its assigns (the
"Developer") to enable development of the above-described housing projects; and
3. Approve terms and conditions of Contracts for Land Disposition and Development by
and between the Housing and Redevelopment Authority of the City of Saint Paul, MN
(the "HRA") and Sherman Associates, Inc., or its assigns, for 215 East 9�` Street and 230
East 10`� Street.
Background
In June of 2001, the Developer presented a proposal to staff to convert the HRA-owned
Workforce Building located at 215 East 9�` Street into 50-units of loft style, for-sale housing (9th
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Street Lofts) and to construct a 60-unit senior rental housing.development on the adjacent
property at 230 East 10�' Street (Lyon's Court). Pazking for 9th Street Lofts would be achieve by
construcring a 68-space pazking ramp undemeath Lyon's Court with underground access to 9th
Street Lofts. On November 14, 2001, the HRA Boazd granted intial tentative developer
desigoation to the Developer and extended said designation on January 22, 2003. On June 11,
2003, the HRA Boatd authorized staff to purchase the property at 230 East 10�' Street, whieh was
accomplished on June 30, 2003 for the purchase.price of $850,000.
9th Street Lofts will be six story building with unit sizes ranging from 985 to 1,672 sq. £t. with an
average units size of 1,331 sq. ft. excluding the two penthouse units on the roof. Units will range
in price from $129,000 to $319,000 with an average pxice of $239,000. A new daycaze piay area
will be provided in the courtyazd between 9tli Street Lofts and First Baptist Church The target
mazket for 9th Street I,ofts are young ptofessionals and empty nestors. The Developer has 28
reservations for units.
Lyon's Court wili be a 5 story buiidingwith the first floor accommodating 30 parking spaces, a
dining room, serving kitchen, health caze room and offices. A remodeled full service commercial
kitchen, meeting rooms and a gymnasium will be provided to the project by the adjoining First
Baptist Church facility. Each floor of Lyon's court will haue a lounge/television room. Units
sizes range from 52&-1021 sq. ft. with an average of 621 sq. ft. Monthly rents will range from
$676 to $977 per month. The project wili also provide voluntary meal services and health care to
tenants. The tazget market are independent, senior residents aueraging 70 yeazs of age..
Proposed Financing
9th Street Lofts will be 97% privately finance by the Developer. Staff is recommending a
$402,000 write down of the appraised $925,000 value of the building to subsidize the high cost
of constructing underground parking and extraordinary cost to rebuiid the brick facade of the
Workforce building, The HRA will hold a promissory note secured by the properiy for 30
months accruing interest at a rate tied to 30 month treasury rates which is currently about 2%.
The Developer will also provide a personal guarantee to repay the loan. The PED Credit
Committee approved the above terms and assigned a risk rating of Accentable to the loan.
E�ibit "A" contains a suxnmary of project sources and uses of fiands.
The Lyon's Court $9,702,666 project cost is proposed to be financed as follows:
• $4.7 million of tax exempt multifamily housing revenue bonds backed by a I3UII-insured
mortgage of which $$3.867 will be repaid from project revenues and $824,801 will be
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zepaid from 9Q% of the ta�t inerement revenue generated from the proj ect.
Appro�mately $1 million will be financed by issuing a tas increment revenue note bond
to be repaid from 90% of the tas inerement revenue generated from the 9th Street Lofts.
Assunung a 12.debt coverage ratio, 6.75% interest rate and a zero inflafion factor it is
estimated the nate will be paid off in approximately 14 years.
The pro}ect automatically qualifies for low income housing tax credits due to the use of
taY-exempt bond financing. The Developer is proposing that 100% of the units qualify
for t� credits of which 50% (30) of the units be rent/income restricted to households at
or below 50% of the azea median income (AMI) and 50% (30) of the units be rent/income
restricted to households at or below 60% of AMI. The project will raise $2.15 million of
t� credit investtnent equity from U.S. Bank Affordable Housing, the proposed limited
investment partner.
First Baptist Church is contributing $150,000 to remodel its kitchen to commercial
standazds which will be made available to provide food services to Lyon's Court.
Staff is recommending the $850,000 land purchase price be written down to $1 to reduce
the cost of the project.
Staff is recommending the HRI� provide a$I50,000 federal HOME loan to the project.
The loan would have a term of 30 yeazs, a 1% interest rate , principal and interest would
be deferred until maturity, The loan would be sec�ed by a mortgage and promissory note
on the property. The PED Credit Committee approved the, above terms and assigned a
risk rating of Loss to the loan.
The remaining balance of the project cost of approximately $7D0,000 would be
contributed by the Developer.
B�ibif "S" contains a suimnary of the pro}ect sources and uses of funds.
Housing Cost Analysis
9�` Street Lofts
Underground Parking Ramp
Re-brick exterior of building
Tota1
$1,015,000
280 000
$1,295,000
x�wor�o�«Biay��mnb��eaas-z�-os.�,a aa-nnn_aco�ao Page 3
HI2A Land write-down assistance
Project Financed costs
Lyon's Court Senior Rental A�artments
Higher costs re: downtown development
Higher costs re: senioz housing -
Cost of 30 units @ 50°/a of AMI
Total
HOME funds
Land write-down assistauce
TIF - 9�' Street Lofts
T'IF - Lyon's Court
Total
Project financed costs
402,000
$893,000
$1,480,500
927,125
616.212
$150,000
850,000
1,011,369
823.801
$3,023
2.835.170
$188,667
"Higher costs re: downtown developmenP' relate to construction costs that aze lugher as result of
developing property in the downtown azea as apposed to a neighborhood setting such as
excavation costs, construction staging, hauling costs, shoring, more stringent design guidelines
and underground ramp parking.
"Higher costs re: senior housing" relates to construction cost tha# aze higher for senior housing as
opposed to fasnily style rental housing such as the provision of congregate dining room,
congxegate kitchen, health care room, lounge xooms and handicap-accessible bathxooms and
kitchens for each unit.
With the addition of 110 units from 9 Street I,ofts and Lyon's Court, 421 units of housing will
have been built in the North Quadrant of which 12% (50 unifs) will be affordable to households
at or below 30% of AMI and 18% (74 units) will be affordable at or below 50% of AMI.
Public Purpose
The public purpose to acquire the property is as follows:
Development of the site for senior rental housing and for-sale lofts is consistent with the
goals of the North QuadYant Redevelopment PZan and North Quadrant Precinct Plan
which is a part of the Saint Paul on the Mississippi Development Framework.
��-��3
2. Development of the Project will allow the creation of 30 senior rental units with
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rent/income restrictions affordable to households at or below 50% of the azea median
income.
Budget Action
Other Future Acrion
1. HRA - Conduct a public hearing to approve the sale of the 215 East 9�' Street and 230
East 10`� Street to Sherman Associates, Inc. or its assigns on September l Oth.
2. City CounciUHRA - Conduct a public hearing on September 24�' to approve asnendment
of the Tax Increment Financing District No. 1(North Quadrant) to inclnde the 9'� Street
Lofts and Lyon's Court project azeas.
3. City Council/HRA - Approve the sale of approxunately $4.7 million of tax-exempt
mulfifamily housing revenue bonds for the Lyon's Court project.
4. HRA - Approve the sale of approximately $1,1 million of tax-exempt tas inerement
revenue bonds, for Lyon's Court, which said bonds will be repaid from tax increments
generated from 9�` Street Lofts.
5. City Council - Conduct a public hearing to approve the vacation of the Lyon's Court
public a11ey between the Worl�orce Building and Lyon's Court property.
Recommendarion
The Executive Director recommends approval of the attached resolution which approves the
following:
1. Authorize staff to prepaze an Amendment to the Tax Increment Financing District No.l
(North Quadrant) (District), which will expand the District to include the above described
properties and provide a means to finance the Lyon's Court senior rental housing
development ; and
2. Authorize staff to schedule a public hearing to sell the properties located at 215 East 9�
Street and 230 East 10`� Street to Sherman Associates, Inc., or its assigns (the
"Developer") to enable development of the above-described housing projects; and
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3. Appxove terms and conditions of Contracts for Land Disposition and Development by
and between the Housing and Redevelopment Authority of the City of Saint Paul, MN
(the "HI2A") and Sherman Associates, Inc., or its assigns, for 215 East 9`� Street and 23�
East 10� Street.
Attachments
HI2A Resolution
E�ibit 1- Sunvuary of Sources and Uses of Funds for 9�` Street Lofts
Exhibit 2- Sntumary of Sources and Uses of Funds for Lyon's Court
E�ibit 3- Project Summary for 9�' Street Lofts
Exhibit 4- Sources and Uses Statement for 9`� Street Lofts
E�ibit 5- Project Stunmary for Lyon's Court
Exhibit 6- Sources and Uses Statement for Lyon's Court
Sponsored by: Commissioner Coleman
Staff: Allen Cazlson, 266-6616 West Team
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Sponsored by:
RESOLUTION NO: 03-8/27 -
RESOLUTION TO APPROVE PREPARATION OF A 3� AMENDMENT TO TI� TAX
INCREMENT FINANCING DISTRICT I�iO. 1(NORTH QUADRANT); SCHEDULE A
PUBLIC HEARING TO SELL PARCELS; AND APPROVE TERMS AND CONDIT'IONS OF
CONTE2ACTS FOR LAND DISPOSITION AND DEVELOPMENT OF PARCELS LOCATED
AT 215 EAST 9� STREET AND 230 EAST 10�.STREET, DISTRICT 17
1 WI�REAS, the Housing and Redevelopment Authority of the CiTy of Saint Paul,
2 Minnesota (the "HIZA") is a public body corporate and politic established pursuant to the
3 provisions of Minnesota Statutes, Section 469.001, et seq.; and
4 WE�REAS, Minnesota Statutes, Secfion 469.001, et seq. (the "Act") authorizes housing
5 and redevelopment authorities to create redevelopment projects as defined by Minnesota
6 Statutes Section 469.002, Subdivision 14; and
WHEREAS, the City Councii on June 23, 1999 approved the Redevelopment Plan (the
"Plan") for the North Quadrant Redevelopment Project Area of downtown Saint Paul setting
forth development and urban design objectives and techniques to achieve the plan objectives; and
10 WFIEREAS, the North Quadrant Precinct Plan of the Saint Paul on the Mississippi
11 Development Framework sets forth a vision for the North Quadrant including objectives and
12 guidelines for redevelopment which guidelines emphasize the creation of a mix of honsing, by
13 type and income, to foster development of an urban vi�lage (the "Redevelopment Proj ecP'); and
14 WHEREAS, Sherman and Associates, Ina (the "Developer") has submitted a proposal to
15 renovate the building located at 215 East 9�' Street into 50 units of for-sale housing lofts (the "9�'
16 Street Lofts") with a total estimated project cost $13,357,000 in the North Quadrant
17 Redevelopment Project Area; and
18 WHEREAS, Sherman Associates, Inc. (the "Developer") with sponsorship from the First
19 Bapfist Church has also submitted a pxoposal to develop a pazking struchue to support the 9'�
20 Street Lofts in addition to constructing 60 units of senior rental housing of which 3 0 units will
21 be affordable to househoids at ar below 50% of the azea median income with a totai projected
22 development cost of $9,702,666, on certain real property located at 230 East 10�` Street and
23 adjacent to 9�' Street Lofts (the " Lyon's CourY') in the North Quadrant Redevelopment Project
24 Area ; and
25 WHEREAS, pursuant to HRA Resolution No: Ol-ll/14-9 the Board of Commissioners
26 approved tentative developer designation of the Developer and e�tended said designation
27 pursuant to HRA Resolution No: 03-1/22 -5 in order to conduct testing, finalize plans and
28 financing for 9�` Streets Lofts and Lyou's Court, which said Developer has accomplished; and
29 WF�REAS, the HRA owns and has fee title to 215 East 9`� Street and 230 East 10�' Street.
K.\WoxkforceB(dg\HI2Abr[amend&27-03.wpd AA-ADA-EEOEmployv
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NOW TI BE IT RESOLVED by the Boazd of Commissioners of the Housing
and Redevelopment Authority of the City of 5aint Pau1, Miunesota that the following is
approved:
Terms and conditions of Contracts for Land Disposition and Development of 9�' Street
Lofts and Lyon's Court aze approved as foilows:
a. the sale of 215 East 9�` Street to the Developer, or its assigns, for the purchase
price of $523,000 to be paid to the HRA by means of a promissory note secured
by a personal guarantee by the Developer with a 30 month term, interest rate tied
to the 30 month treasury rate and principal and interest deferred rzntil maturity of
the note, all subject to final approval by the Boazd of Commissioners subsequent
to a public hearing on September 10, 2003; and
b. the sale of 230 East 10�" Street to the Developer, or its assigns, for the purchase
price of $1 which sale will have a recapture provision should the 9`" Street Lofts
or Lyon's Court, whereby the ground rights will be sold for the 9�` Street Lofts
development and the air rights will be sold for the Lqon's Court development, all
subject to final approval by the Board of Comxnissioners subsequent to a public
hearing on September 10, 2003; and
a the Developer, or its assigns, be granted a federal HOME loan in the amount of
$150,000 for a term of 30 yeazs accruing interest at the rate of 1% with principal
and interest payments being deferred until maturity and said loan would be
secured with a mortgage on the au rights of 230 East 10 Street; and
d. the issuance of up to $4.7 million of taz�-exempt multifamily revenue bonds
backed by a HUD insured mortgage of which 90% of the ta�c increment revenue
genezated from the Lyon's Court development would be pledged to repayment of
the bonds, a11 subject to final approval by the Boazd of Commissioners to amend
the T� Increment Financing District No. 1(North Quadrant) subsequent to .
statutory notificatians and public hearings for asnendment of said t� increment
fmancing district and approval of said bonds; and
e. the issuance of up to $1.2 miilion of tax-exempt taY increment revenue bonds to
repaid from tax increment revenue generated from the 9`� Street development, a11
subject to final approval by the Boazd of Commissioners subsequent to statutory
notifications and public hearings; and
f. Bonds issued must meet the HRA approved, Departrnent of Planning and
Economic Development's undenvriting criteria and Developer must pay all
required issuance fees for the issuance of said bonds; and
65 g. that the Bxecutive Director of the I3RA and assistant City Attorney aze authorized
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66 to negotiate final terms and conditions of said Contracts for Land Disposition and
67 Development within the pazameters of the above mentioned term and condiixons;
68 �d
69 h. that said development proposals for 9�` Street L,ofts and Lyon's Court aze
70 satisfactory and the same is h�eby accepted, and the execution and delivery of
71 the Contracts for Land Disposition and Development of said properties is hereby
72 authorized by the Board of Commissioners to be executed on its behalf by the
73 Chairperson or his/her designated Commissioner, the Executive Director of the
74 HIZA or Acting Executive Director, and the Director, Office of Financial Services
75 of the Ciry of Saint Paul, subject to final approval by the Boazd of Commissioners
76 of actions reqniring statutory notifications and public hearings.
77 2. The sale of 215 East 9�' Street and 230 East 10�' Street is exempt from the I land
78 disposition notification and procedural process since the Developer was given tentative
79 developer designation prior to the approval of said disposition policy.
80 3. Staff is to deliver proper notifications and schedule a public hearing on September 10,
8 t 2Q03 before the Board of Commissioners to consider the sale of 215 East 9�` Street and
82 230 East 10�' Street to the Developer.
83 4. Staff is to prepare a 3` Amendment to Tax Incxement Financing District No. 1(North
84 Quadrant) to include 215 East 9�' Street and 230 East 10`� Street within said district,
85 delivery proper statutory notifications and schedule a public heazing before the City
86 Council of Saint Paul, Minnesota to consider approval of said amendment.
87 5. The 2003 HRA Budget is amended as stated in Exhibit "A" attached hereto and made a
88 part hereof of tlus resolution.
K\WOdd'orce$Idg\FIRAbrtamend8-27-03.wpd AA-ADA-EEOEmpioya
BUDGETAMENDMENT
The HRA Board of Commissioners approve the budget amendment to the Year 2003 HRA budget.
HRA HOME FUND # 103
SPENDING PLAN
10337001-0547-63523
103-37002-0547-63558
Total Spending
8/18/2003
HOME Unspecified Projects
Loan to Lyon Court Limited Partnership
C/o Sherman Associates Inc
Net Change
Current
Budget
1,305,624
0
1,305,624
103.x1w
03 -g�
ATTACHMENTA
Change
Amended
Budget
(150,000)
150,000
0
0
1,155,624
150,000
1,305,624
Prepared by PED Accounting
�
D3-��3
EXHIBIT 1
Ninth Street Lofts - 209 East 9th Street
Uses and Sources Statement
Project: 50 condos. .68 parkina sqaces
Purchase ($523,000)
Building Remodei - bid
�ft Costs
Architect - 3.5
EngineeringlSurvey
Legal
Holding CostslSecurity
Professional Reports
Marketing
Broker Fee -4%
Media - 1.5°!0
Model
Financing
Fees
tnterest
Title/Closing Costs
HRA loan interest
925,000
9,350,000
9,350,000
250,000
50,000
100,000
50,000
25,000
522,000
165,000
50,OOQ
95,000
435,ODD
50, 000
13,000
12,722,500
52,500
180, 000
402,000
475,000
737,000
593,000
Contingency 50,000
Warranty 50,000
Developer Fee 10.46% � 1,177,000
aluation 95% of Sales
ss current base
IF Value
Tax Capcity Rate
ax Capacity
iax Rate
otal Yearly Tax increment
]%-of TIF
ebt Service Amaunt (a�1.2
12,280,000
925,000
11,355,000
1.0°/
113,550.00
1.29
146,480
131,832
109.860
s Proceeds
Sales 50 units
7 spaces @$7,500
12 spaces @$,15,000
Tax Increment
Land Write-down
54,929.81
Biannual Payments
Interest Rate
Term (years)
Amount of TIF Note
Cost of Issuance
Cap. Interest
Construction Proceeds
Subsidy/unit
25
1,317,980
90,666
177, OOD
1,050,314
8,040.00
ng aost per
(years)
st Rate
nt Value of F
S&U 9th Street.xlsSheet7
30 1. Write land down $925,000 to $523,000
6.00% 2. City carry's $523,000 land purchase, 30 months @ 1.0%
8/14/2003
exHisif2 ��`
Lyon's Caurt Senior Apartments
Uses and Sources Statement
Fro}ect 60 units of senior housinA. 30 parkinc
Purchase
Building Remodel - bid 6,250,000
1st Baptist 150,000
�ft Costs ,
Architect - 3.5%
Engineering/Survey
Legal
Professional Reports
Broker Fee -4%
Media - 1.5%
Model
Fees/bonds
interest
TitlelTaxes
Negative Arbitrage
Cost of Issuance - TIF
Capitaiize % - TIF Bond
Developer Fee
Valuation 95% of Value
less current base
T{F.Vatue
x Tax Capcity Rate
Tax Capacity
xTax Rate
Total Yeariy Tax Incremen
90% of TIF
Debt Service Amount Ca?1.'
- Tax Credits
6,400,000 50°la ofi uniis @.50% AMl
Sales Proceeds transfer
250,000 First Baptist
65,000 Developer
95,000 City - HOME
35,000 City - Land Write Down
445,000 Deferred Developer Fee
302,000
138,000
60, 000
200,000
90,666
177,000
850,000 First Mortgage - revenues
1st Morfgage - TIF Project
TIF Condos
967,666
240,000
50, 000
9.26% 750,000
9,702,666
5,400,000
325, 000
5,075,000
1.25°/
63,437.50
1.31
83, 357
75,021
68.201
Biannuai Payments
Interest Rate
Term (years)
Amount of TIF
34,100.54
st Mortgage Amount $
st Mortgage Bond $
;ity Subsidy/unit $
25
$856,949.17
4,691,631
4,700,000
47,253
1. Use 90% of TIF generated by 9th Street Lofts to issue TIF bond; est. $1 -1.2 miliion.
2. Use 90% ofTIF generated from projecf to underwrite 1st mortgage.
3. Write down 100% of land purchase.
4. �oan $15�,000 of HOME funds; 30 years @ 1°/a, deferred to maturity.
5. Developer defers part of devefoper fee: est. Cc� $199.166
3,867,830
823,801
1,011,369
2,t50,000
150,000
500,000
150,000
850,000
199,666
9,702,666
S&U 9th Street.x�sSheet6 8/14/2003
03-��3
Fomn Revisatl 07/7200.3 EXH18iT 3
Project Title:
Location (address):
Projecf Type:
9th Street Lofts
215 9th Street
� New Const, Ownership (acept S�
❑ New Cortstrucdan, RenWl
❑ New Cnnst, SF.Oxnership Q FxteMed Life, SF Ow�p.rship
❑ Ex[ended Lfie. Rental
Sherman Assoeiates and Lander Group propose to convert the HRA-owned
Workforce Building into 50 for-sale housing lofts (Market Lofts). Prices will renge
from $�29,000-$319,000 with an ave2ge of $239,000/unit Developer is requesting
Description: assistance �in the fosm of a write of the purchase of the properiy fram $525,900 to
$523,000. This project is part af the Iarger development involving the construetion
. the adjacent 60 unit senior rental housing development (Lyon's Court).
PED Project Manager. Allen Cadson Date Fortn Completed: - SN2/2003
Stage of project: Development Est. date of closing: 9/30/2003
Ward & District: 3,17 Date of dosing:
Developer. SMerman Associates, Inc. and the Lander Group
RenVSale Affordability
Renovation of P `"'�
No. Range <=30°/a 31-50% 51-60% 61-SO% >80%
Building Type: concrete
bidg. Eff/SRO
Number of Units: 50 1 BR 46 t �• ° � 1 45
319,000
Number of Parking zas,00a
Spaces: 68 2 BR 3 5ss.000 3
GSF of Site: 22,125 3 BR + 1 s�s,000 �
GSF of Livable Area: 63,920 Total 50 0 0 0 1 49
� °10 10U°/a 0% 0°(0 0°!0 2% 96%
Total Development Cost:
Value a8er
Development:
To1ai PuEtiGOther
Partner Cost:
Total City/HRA Direct
Cost:
$13,357,000
$13,000,000
$402,000
Public improvements:
Redevelopment
aGivities:
EMraordinary housing
cost items:
Underground remp/repaice
erterior brick
.^.. �, � . - _ .. _ -.
Approval by HRA Baord of Iaod sale and development agreement
This documentis h�infarmaCOn puryoses antyand k deemedreGabk bul natguaranteed. Infolmadon is subjecf to charge vntMUf notice, arttlOaes naf cnnsGlute a NiHing
obGgation an fhe paROle2herthe Housing aMReOevalapmentAUfhantyofNe CrtyW Saint Pau( Minnesob (HRA) antl fhe Gtyof Sainf Pau( Mirtnesota, norere eitherparfies
raspansiblelo�anyomissiansorermrs. EzceptfotCloseCPmjecES,allilem5aresvbjecttofinalnegoGa6onsalWappmva(fhesau2esofPoMSmaynotbeanachralmvmifinentor
eppmval W(u�MS by rire CityMRA many otfie�funtling paMeraMGaveiopsrs fistetl forp�qects ale aiso su6ject b chaMje.
Housing Proj Summ Fortn720.03.bs
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FoimRevisetl07/72003 EXHIBITS
Project'ritie: Lyon's Court SeniorApartmenfs
Location (address): 10th and Sibley Street -
Prqecf Type: � ❑ Ne�vtonsc, Ownershi
P ��� �J ❑ New CnrtsG, SF O�vriership ❑ ExterMe� Life, SF Ownership
�' New Cortstruction. Rentai ❑ Extentlsl Life. Remal
Sherman Associates, Inc. proposes fo develop at SW comerof 10th and Sibley Strei
- a 5 sfory, 60 unit senior housing development The project would be tied fo the Firs
Description: BaPtist Church for eating services, meeting rooms and soeial/recreational aetivities.
A parking ramp will be constrvcted below the senior housing to provide parking for
the project and the proposed 9fh Street Lofts condominium developmenf adjacent t<
theseniorsite. �
PED Projed Manager:
Stage of project:
Ward & District:
Allen Carlson
pevelopment
3,17"
Sherman Associates, Inc.
mid-rise
Eff/SRO
60 1 BR
35 2 BR
24,818 3BR+
51,256 Total
%
$9,702,666
$6,900,000
$6,703,000
$2,835,170
Date Fortn Completed:
Est. tlate of closing:
Date of closing:
8/14/2003
92Nl2003
Developer:
Building Type:
Number of Units:
Number of Parking
Spaces:
GSF of Site:
GSF of Livable Area:
RenUSale AffO�dabi�.
Pflce
No. Ranee <=30% 31-50% 51-60°/a
48 ssasoo 30 14
12 >�� � ��� 0 16
60
0
30 I 30
01 0
Totai Development Cost:
Value after
Development:
Total PubliGOther
Partner Cost:
ToW! CityfHRA Direct
Cost:
Pubiic Improvements:
Redevelopment
activities:
Extraordinary housing
cast items:
�
Need to approve expansion of tau increment district Also, need to approve bond financing for the pro�ect
This tlocumentis lorinh(maGOn purpases ontyaiMis tleemetl re/reb/e butnof guaaMeetl. Inlaimabon is subj�vXro chaige wMrou( noGCe, antl tloas notmnsb"fute a bi�ng
�64"9atrcn an Gre part W eRherthe Housing aM RetlevefopmeMAuthorityaiMe Ciryoi Saiilt Paul, Miru�esota (HRA) antlthe City MSaint Paul, Minriesota, nOraie ertherpayas
%ponsrbleforanyomissionsorertors. FicepthrClasedPm�xcts,allitemseresubjeGtofinalnagotlaGOnsarMappipral,GresovicesoffuntlsmaynotbeanaCUalcommifinerrfor
appmva/ offuMS by the Gy/HftA oranyo&e�Ponongpartneraiw'tleveloperslisfetllorpm,ecfsare also subjuCto change.
Lyn9biomsten Senior Hsg Proj Summ Fomfxls