04-1059Council File # D (` � v `
Resolution #
Green Sheet # ��,�. ` -y�,�,+=
RESOLUTION
Presented By
Re£erred To
Committee= Date
RESOLUTION NO.
2 RESOLUTION APPROViNG THE
3 ESTABLISHMENT OF A REDEVELOPMENT PROJECT A.REA AND
4 TAX INCREMENT FINANCING DISTRICT AND
5 THE ADOPTION OF A REDEVELOPMENT PLAN AND
6 TAX INCREMENT FINANCING PLAN THEREFOR
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
Section 1. Recitals
9 1.01 The Housing and Redevelopment Authoriry of the City of Saint Paul, Minnesota (the
10 "Authority") proposes to establish the Payne Phalen Redevelopment Project Area (the "Project Area") and
11 adopt a redevelopment plan therefor (the "Redevelopment Plan") pursuant to Minnesota Statutes, Sections
12 469.001 to 469.047, as amended.
13 1.02 The Authority has asked the City Council to approve the creation of the Proj ect Area and
14 Redevelopment Plan and, within the Project Area, approve the creation of the Payne Phalen Taac Increment
15 Financing Disirict as a housing tas increment financing district under Minnesota Statutes, Section 469.174,
16 Subdivision 11 (the "Tax Increment Financing DistricY'), and the adoption of a Taac Increment Financing P1an
17 therefor, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.1799 (the
18 "Tax Increment Act").
19 1.03 The Authority has performed all actions required by law to be performed prior to the creation
20 of the Project Area and the Tax Increment Financing District and adoption of a Redevelopment Plan and TaY
21 Increment Plan therefor, including, but not limited to, consultation with its planning commission, notification
22 of the Ramsey County Commissioner representing the area of the County in which the Tas Increment
23 Financing District is located, and delivering a copy of the Taac Increment Financing Plan to Ramsey County
24 and Independent School District Number 625, which haue t�ing jurisdiction over the property to be included
25 in the Taaf Increment Dishict. The Authority has requested that the City approve the adoption of the
26 Redevelopment Plan and Taac Increment Financing Plan and the creation of the Proj ect Area and Tax
27 Increment Financing District following the holding of a public hearing upon published and mailed notice as
28 required by law.
29 Section 2. Findings for the Creation of the Project Area and Tax Increment Financing District (Payne
30 Phalen Housing Project) and Adoption of a Redevelopment Plan and Tax Increment Financing Plan Therefor.
31 2.01 The City Council hereby finds that the creation of the Project Area and Tax Increment
32 Financing District (Payne Phalen Housing Project) and adoption of the Redevelopment Plan and Tax
33 Increment Financing Plan therefor, ue intended and, in the judgment of the City Council, its effect will be, to
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34 cairy out the objectives of the Redevelopment Plan and to create an impetus for the conshuction of low and
35 moderate income housing, and will otherwise promote certain public purposes and accomplish certain
36 objectives as specified in the Redevelopment Plan and Taac Inczement Financing Plan.
37 2.02 The City Council hereby finds, in connection with the Redevelopment Plan that (a) the land in
38 the Redevelopment Project would not be made available for redevelopment without the financial aid to be
39 sought, (b) the Redevelopment Plan affords the maxiinum opportunity, consistent with the needs of the City
40 of Saint Paul as a whole, for the redevelopment of the area by private enterprise, and (c) the Redevelopment
41 Plan conforms to the general plan for the development of the City as a whole.
42 2.03 The City Council hereby finds that Taac Increment Financing District (Payne Phalen Housing
43 Project) qualifies as a"housing districY' within the meaning of the Taac Increment Act for the following
44 reasons:
45 The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 11, a"housing
46 district" because it consists of a project or portions of a project or a portion of a project
47 intended for occupancy, in part, by persons ar families of low and moderate income as defined
48 in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of
49 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949,
50 as amended; and any other similaz present ar future federal, state or municipal legislation or
51 the regulations promulgated under any of those acts. The fair market value of the
52 improvements which are constructed for coxnxnercial uses or for uses other than low and
53 moderate income housing will not consist of more than 20 percent of the total fair market
54 value of the planned improvements in the Tax Increment Financing District. The fair market
55 value of the improvements is determined using the cost of conshuction, capitalized income or
56 other appropriate method of estimating market value.
57 The project to be constructed in the Tas Increment Financing District will consist of
58 approximately 73 units of senior rental housing and related parking facilities of which at least
59 ten percent (10%) will be initially rented and occupied by individuals whose family income is
60 less than or equal to thirty percent (30°l0) of inedian income and at least ten percent (10%) of
61 such units will be initially rented and occupied by individuals whose family income is less than
62 or equal to fifty percent (50%) of inedian income and the remaining eighty percent (80%) of
63 the units will be initially rented and occupied by individuals whose family income is less than
64 or equal to sixty percent (60%) of inedian income.
65 It is anticipated that 100% of the planned improvements in the Tax Increment Financing
66 District will be for low and moderate income housing purposes.
67 2.04
68
69
70
71
72
73
74
75
76
77
The City Council hereby makes the following findings:
(a) The City Council further finds that the proposed development, in the opinion of the
City Council, would not occur solely through private investment within the reasonably foreseeable
future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for
such finding being:
The property on which housing development will occur would not be developed in the
reasonabiy foreseeable future. The Developer has represented that it could not proceed
with the development without tax increment assistance.
(b) The City Council further finds that the Tax Increment Financing Plan conforms to the
general plan for the development or redevelopment of the City as a whole. The specific basis for such
finding being:
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78 The Tax Increment Financing Plan will generally complement and serve to implement �
79 policies adopted in the City's comprehensive plan. The housing development
80 contemplated is in accordance with the existing zoning for the property.
81 (c) The City Council fiu�ther finds that the Tas Increment Financing Plan will afford
82 maxunum opportunity consistent with the sound needs of the City as a whole for the development of
83 the Tax Increment District by private enterprise. The specific basis for such findin� being:
84 The proposed development to occur within the Taac Increment District is housing. The
85 development will increase the taacable mazket valuation of the City. The available
86 housing in the downtown area of the City will expand by at least 73 rental units with
87 the completion of the development contemplated by this Tas Increment Financing
88 Plan.
89 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision
90 3(2), the City Council hereby finds that the increased market value of the property to be developed
91 within the Taac Increment District that could reasonably be expected to occur without the use of tas
92 increment financing is $0, which is less than the mazket value estnnated to result from the proposed
93 development (i.e., $6,700,000) a8er subtracting the present value of the projected tax increments for
94 the maximum duration of the Tax Increment District (i.e., $938,69632). In making these findings, the
95 City Council has noted that the properry has been undeveloped for many years and would likely
96 remain so if tas increment financing is not available. Thus, the use of tas increment financing will be
97 a positive net gain to the City, the School District, and the County, and the tax increment assistance
98 does not exceed the benefit which will be derived therefrom.
99 (e) The City elects to retain all of the captured tax capacity to finance the costs of Tax
100 Increment Financing District. The City elects the method of taac increment computation set forth in
101 Minnesota Statutes, Section 469.177, Subd. 3(a).
102 2.05 The provisions of this Section 2 are hereby incorporated by reference into and made a part of
103 the Tas Increment Financing Plan.
104 Section 3. Creation of the Proj ect Area and Tas Increment Financing District (Payne Phalen Housing
105 Project) and the Redevelopment Plan and Taz Increment Financing Plan therefor.
106 3.01 The creation of the Project Area and Taac Increment Financing District (Payne Phalen Housing
107 Project) is hereby approved and the Redevelopment Plan and Tax Increment Financing Plan therefor are
108 hereby adopted.
109 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
110 counsel are authorized and directed to proceed with the implementation of the Project Area and the Tas
111 Increment District and the Redevelopment Plan and Tas Increment Financing Plan and for this purpose to
112 negotiate, draft, prepare and present to the Board of Commissioners of the Authority for its consideration all
113 further plans, resolutions, documents and contracts necessary for this purpose.
Adoption Cex
By:
Approved by
By:
oy- ios9
Reauested by Denartment o` Planning & 5conomic
Development
By:
Approved by
By:
Form Ppprove
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Adopted by Council: Date�/{�OVP�'�'L�+' �� ��(�^('
_
D`� /o�
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
DepartmenUoffice/council: Date Initiated:
PE - Plaming&EconomicDevelopment Z��T-� Green Sheet NO: 3024032.
Cor�et Person 8 Phone• DenartrnerH SeM To Person InitiaUDate
ShefiPembeROn � 0 lannin &EconomicDevelo T. ancLez � �
266-6615 ps,,j 1 lannin &Econo�cDevelo De arhnentDirec[or ��
Must Be on Councii Agenda by (Date): Number y �m tt roe ��
�i�`�
11/03/04 Rouling 3 vor's Office Ma odASSistant �
Order 4 00
5 ' Qerk (,1 Clerk
Total � of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Public Hearing on Tax Increment Financing and Redevelopment Plan. Signatures for City Council Resoltuion (establishing
Redevelopment Project Area and Tax Increment Financing District Resolurion) for the development of the Payne-Phalen
Redevelopment Project Area and Ta7c Increment Financing assistance (pay-as-you-go) for the Payne-Phalen Senior Lofts Housing
development, Dishict 5.
Recommendations Approve (A) or Reject (R): Personai Service Contrects Must Answer the Following Question5:
Planning Commission t. Has this person/firtn ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firtn ever been a city employee?
A Staff Yes No
A HRA approved 5-26-04 3. Does tliis personlfirm possess a skill not normally possessed by a�y
Resolution 04-OS 6-2 current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
With the conslruction of New Phalen Boulevazd creating new neighborhood gateway at Payne Avenue. The neighborhood has gone
through a three year process idenrifying redevelopment acuvifies for the prime comers of Payne and Phalen creating an attracrive
gateway that wIll make a positive statement for Payne Avenue.
Advantages if Approved:
The projec# will result in constucUon of a four-story, mixed use building providing 73 new affordable senior rental housing units with
retail space for both services for housing and open retail space. Total development cost is $11,626,000. The design and material make a
positive statement of vitality to the neighborhood.
DisadvantaqeslfApproved: �
None
Disadvantages If Not Approved: � -
Will not be able to cany out the overall development objectives approved by the neighborhood to revitalize tlus area and create a new
gateway to Payne Avenue Main Street azea. Underurilized land and deteriorated buildings will continue to be the visible component
along New Phalen Blvd. •
TotalAmountot g925,000 TIF CosURevenue Budgeted: -
7ransaction: /�' p p /J �
FundinG Source: Activity Number: I�/ o � p� 2 C� �.(�
Pay-as-you-go Tax Increment Financing ,�- ___e 0�
Pinancial InformaGort: � ` ��°t j �
(Explain) �yynds are only coming from the taxes because of the development arid is only for the Y�
development. �
o�-ios�
CITY COUNCIL OF TF� CITY OF SA1NT PAUL, MINNESOTA
REPORT TO TI� CITY COITNCIL DAT'E: October 25, 2004
REGARDING: PUBLIC HEARING - Resolution Approving the Establishment of a
Redevelopment Project Area and TaY Increment Financing District and the
Adoption of a Redevelopment Plan and Tas Increment Financing Plan
(Payne-Phalen Pazkway Senior Lofts)
The Housing and Redevelopment Authority of the City of Saint Paul (HRA) received a request from
Sherman Associates, Inc. for consideration of Tas Increment Financing in the Payne-Phalen Boulevard
Redevelopment Project Area.. On January 28, 2004, HRA authorized staff to create a Tax Increment
Financing Plan, and on May 26, 2004 identified up to $1.425 million in Tax Increment Financing as
each phase of development moved forward wittrin the Redevelopment Project area.
Attached is the Redevelopment Plan for the Payne-Phalen Boulevard Main Street Redevelopment
Project Area. Also attached is the Tas Inerement Financing Plan for the first phase of this Project Area
development. The Tax Increment District covers the development of the Payne-Phalen Parkway Senior
Lofts. The Taac Increment District is created as a pay-as-you- go note and allows no more than 90% of
the additional increment to be captured. That the tax increment being created by this development
would only be realized with this development and the district only covers the site where project is
being built. Over the 25 year housing district, the developer will be allowed to capture $925,000 net
present value at an interest rate not to exceed 6%. The payments are a pay-as-you-go note from the
development. The assistance is for conshucting the Payne-Phalen Parkway Senior Lofts , a 73 unit
affordable rental housing project with retail and service space on part of first floor ("ProjecY') located
in District 5.
On May 26, 2004, HRA approved the execution of a Development Agreement with Sherxnan
Associates, Inc. and approved funding to carry out development of the first three phases of the Payne-
Phalen Boulevard Main Street Redevelopment Project Area, which included housing bonds, tax
increment financing and HOME funds.
The purpose of this report is to request the City Council consider approving the resolution making
the necessary findings to adopt the Redevelopment Plan and Tax Increment Financing Plan and District
adopting the attached preliminary (inducement) resolution which would approve the following:
PROJECT
The Project consists of a four story apartment building containing 73 affardable rental senior housing
units with some mixed use on the first floor, including services for the seniors and outside public retail.
Amenities include: structured parking, elevator, laundry facility and common gathering space. The
Project will comply with the City's rental affordability requirement of 10% of the units affordable at
30% of inedian income and 10% of the units affordable at 50% of inedaan income.
E�
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FINANCING
The Project wili be funded by a combination ofmultifamily taac exempt bonds, federal Low Income
Housing Taac Credit Program (4%), TaY Increment Financing and HRA approved HOME Funds. The
taY credits are not from the Ciry's annual allocation but aze 4% credits eligible for use with tas exempt
bonds (the maacimum rents must be affordable at no more than 60 percent of area median income.)
The Deparhnent of Housing and Urban Development is processing an applicarion for FIUD insurance
to enhance the bonds.
The I�A took certain action on May 26, 2004 to provide gap financing of approximately $3,091,651
from the sale of tasable bonds for the Scattered Site Tas Increment Financing District No.lA and
$900,000 of Community Development Block Grant funds. The HRA's gap financing may be lessened
if additional funds are approved in October by the Minnesota Housing Finance Agency. The Total
Development Cost is $11,165,000.
Summary of Preliminary Sources and Uses for the Payne-Phalen Boulevard Senior Lofts Project.
Sources
Housing Revenue Bonds
4% Taac Credits (Equity)
HRA HOME Funds
Deferred Dev. Fee
Total
$5,800,000*
3,200,000
1,650,000
515,000
$11,165,000
Uses
Land
Conshuction
Constr Loan Int.
Real Estate Closing Costs
Legal
ArchitecUSoiUAppraisal, etc.
HLJD Costs
Bond Costs
Project Reserves
Negarive Arbitrage
Contingency
Developer Fee
$ 1,475,000
6,441,000
223,000
55,000
172,500
356,000
243,951
172,150
358,000
250,759
439,640
978,000
$11,165,000
* the bonds include a$925,00 pay-as-you-go TIF note
Tax Exempt Bonds
The bonds will be issued in Series A. The Series A bond (HLJD insured) will be the first position
secured long term debt and will be repaid from project cash.
TIF Loan
The Payne-Phalen Parkway Senior Lofts is located in the Payne-Phalen Tax Increment Financing
District. This loan will come from the sale of tasable revenue bonds and is to be repaid from the
revenue generated from the development TIF district. The annual payments of the district will
amortize approximately $925,000 in bonds through the term which is a 25 year housing district.
�f -1055
HOME Fund Loan
The I�2A approved $1,650,00 of HOME funds that will be used in the acquisition and construction of
this development. The HOME funds aze being provided as a deferred loan with an accruin� 1% per
annum interest rate and will be due and payable at time of first mortgage pay-off. HOME funds also
require long term affordability for a restricted period of time (30 years) which restrictions aze insured
by filing a Declararion of Covenants, Conditions and Restrictions on title. The loan would be secured
by a note, mortgage, assigtunent of leases and rents and a UCC. Of the 73 units, 35 units have been
desigiated as HOME units of which 21 units are below 60%, 7 units are below 50%, and 7 units are
below 30%. The development is monitored yearly to insure the compliance the affoxdability
requirements.
FEES
The Developer has submitted a non-refundable application fee of $2,000 for the 4% tax credits and $5,000
for the Housing Bond application. Should the Bonds be issued, the HRA will receive an administrative
fee at closing equal to one percent of the principal balance of the Bonds. Every year thereafter that the
Bonds remain outstanding the HI2A will receive an annual administrative fee equal to one -tenth of one
percent of the outstanding principal balance of the Bonds.
SUPPORT
The project received support from the District 5 Planning Council.
PUBLIC PURPOSE
The following public purposes will be met:
* Project will provide affordabie housing opporiunities for persons at 60%, 50% and 30% of
median incomes.
* Project meets objectives of The Housing Plan, adopted as parC of the City's
Comprehensive Plan, Section 6.0, Strategy 3: Ensure Availability of Affordable Housing.
'� Develop under-used land and weak land use mix to productive, taa� producing property
becoming an asset to the neighborhood and City
* stimulate private investment and reinvestment
Attachments:
City Council Resolution
Tax Increment Financing Plan
Public Hearing Notice
Planning Commission Resolution approving Redevelopment Plan
Redevelopment Plan
IIRA Resolution 04-OS/26-2
Prepared by: Sheri Pemberton-Hoiby
PED Project Manager
266-6615
oy-�osy
TAX INCREMENT FINANCING PLAN
for the establishment of the
PAYNE PFIALEN TAX 1NCREMENT FINANCING DISTRICT
(a housing district)
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF SA1NT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Approved by City Council:
Adopted by Authority:
This document was drafted by:
BRIGGS AND MORGAN
Professional Association (KAL)
2200 First National Bank Bldg.
Saint Paul, MN 55101
(651)808-6625
1678229v2
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TABLE OF CONTENTS
(for reference purposes only)
TAX INCREMENT FINANCING PLAN
FOR TTIE PAYNE PHALEN TAX INCREMENT FINANCING DIST`RICT
P_av
Section 1 . ............................................................ Forewordl
Section 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statutory Authorityl
Section 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Objectivesl
Section 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Redevelopment Plan Overviewl
Section 5 . . . . . . . . . . . . . . . . . . . . . . Parcels to be Included in Ta�c Increment Financing District2
Section 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Parcels to be Acquired2
$�ratiilnp�nent Activity in Taac Increment Financing District for which Contracts have been Sia ed
3
Section 8. ...... Other Specific Development Expected to Occur within Redevelopment Area3
Section 9 . . . . . . . . . . . . . . . . . Estimated Cost of Project; Tax Increment Financing Plan Budget3
Section 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Estimated Amount of Bonded Indebtedness3
Section 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sources of Revenue3
Section 12 . . . . . . . . . . . . . . . Esrimated Captured Tax Capacity and Estimate of Tax Increment4
Section 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Type of Taac Increment Financing District4
Section 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duration of Tas Increment Financing District5
Section 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Estimated Impact on Other Taxing Jurisdictions5
Section ]C�odification of Tax Increment Financing District and/or Tas Increment Financing P1an5
Section 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . Modifications to TaY Increment Financing District6
Section 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administrative Expenses6
Section 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limitation of Increment7
Section 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use of Tax Increment8
Section 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notification of Prior Planned Improvements9
Section 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excess Tax Increments9
Section 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements for Agreements with Developers9
Section 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Limitations on the Use of Tax Incrementl0
Section 25 . .................................................. County Road Costsll
Section 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment Agreementsl l
Section 27 . . . . . . . . . . . . . . . . . . . . . . Administration of the Tax Increment Financing Districtl l
Section 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Reporting Requirementsl2
EXHIBIT A - Maps #1 and #2 of Taac Increment Financing District . . . . . . . . . . . . . . . . . . . A-1
EXHIBIT B - Tax Increment Financing Plan Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1
EXHIBIT C - Projected Tax Increments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1
EXHIBIT D - Fiscal and Economic Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . D-1
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TAX INCREMENT FINANCING PLAN FOR
THE PAYNE PHAi,EN TAX INCREMENT FINANCING DISTRICT
Section 1. Foreword. The Housing and Redevelopment Authority of the City of Saint
Paul, Minnesota (the "HRA"), and its staff and consultants have prepared the following
information for the establishment of a housing t� increment financing district (the "Tas
Increment Financing District"). The Tax Increment Financing Dishict is located within the
Payne Phalen Redevelopment Project Area heretofore established by the HRA (the
"Redevelopment Project Area").
Section 2. Statutory Authoritv. There exist areas within the City of Saint Paul,
Minnesota (the "City") where public involvement is necessary to cause development to occur.
To this end, the HRA has certain statutory powers pursuant to Minnesota Statutes, Section
469.001 to 469.047 (the "HRA Law") and Minnesota Statutes, Section 469174 through 469.1799
(the "T� Increment Financing Act" or "TIF Act"), to assist in financing public costs related to a
redevelopment project.
Section 3. Statement of Ob ectives. The Taac Increment Financing District consists of
091 acres of land and adjacent and internal rights-of-way. The Tax Increment Financing District
is being created to facilitate the development of a senior rental housing facility containing
approximately 70 units and approximately 46 underground parking stalls. The tax increment
financing plan is expected to achieve many of the objectives outlined in the Redevelopment Plan
for the Redevelopment Project Area.
The following are some of the objectives being facilitated by the Tax Increment
Financing Plan.
A. Provide Affordable Housing for Saint Paul Residents.
The available housing for residents in the Project Area will be expanded when the
approximately 70 units of affordable housing are constructed.
B. Expand the Tas Base of the City of Saint Paul.
It is expected that the taxable mazket value of parcels in the TaY Increment Financing
District will increase by approximately $6,107,500 as a result of the new development.
The activities contemplated in the Redevelopment Plan and this Tax Increment Financing
Plan do not preclude the undertaking of other qualified development or redevelopment activities.
These activities are anticipated to occur over the life of the Talc Increment District and the
Redevelopment Project Area.
Section 4. Redevelopment Plan Overview.
1. Property to be Acquired — Any of or all of the property located within Tax
Increment Financing District ar Redevelopment Proj ect Area may be acquired by
the T3RA. The HRA may acquire properties with or without having entered into
an agreement with a private developer.
2. Relocation - if necessary, complete relocation services are auailable pursuant to
Minnesota Statutes, Chapter 117 and other relevant state and federal laws.
3. The IIRA may sell or assist a developer with the cost of acquisition of selected
1678229v2
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properties within TaY Increment Financing District or Redevelopment Project
Area, or may lease land or facilities to a developer.
Section 5. Parcels to be Included in Taac Increment Financina Dishict . The following
parcels located in the City of Saint Paul, Ramsey County, Minnesota aze to be included in the
Tas Increment Financing District:
Including both sides of all interior and adjacent public streets and rights of way, including
railroad right of way. A map showing the property to be included in the Tas Increment District is
attached hereto as Exhibit A.
FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO
BE INCLUDED IN THE TAX INCREMENT FINANCING DISTRICT CAN BE OBTAINED
FROM THE EXECUTIVE DIRECTOR OF THE HRA.
Section 6. Parcels to be Acquired. The HRA may acquire and finance all or a part of the
costs of acquisition of all or a portion of the parcels identified in Section 5 0£ this Tax Increment
Financing Plan. The HRA may also acquire pazcels in the City which are outside the Tas
Increment District in order to encourage the development of affordable rental housing facilities
as anticipated by Section 24, clause 4 hereof. Prior to acquiring any parcels with tax increments
in excess of the percentages permitted by Minnesota Statutes, Section 469.176, subd. 5, the IIRA
will enter into an agreement with a private developer for the development of the parcels which
will provide recourse to the HRA if the development is not completed. The HRA may use its
powers of eminent domain to acquire parcels which it cannot obtain through private negotiation.
The IIRA may acquire property by gift, dedication or direct purchase from willing sellers
in order to achieve the obj ectives of the tax increment financing plan.
Such acquisitions will be undertaken only when there is assurance of funding to finance
the acquisition and related costs.
Section 7.
persons named below:
contracts have been or will be entered into bv the
A Development Agreement by and between the HRA and Phalen Parkway Lofts
Limited Partnership (the "Development Agreement"), in connection with their
purchase of property located in the Tax Increment District and the construction of
approximately 70 units of senior rental housing units (the "DevelopmenY'). The
construction costs are estunated to be approximately $6,565,000 and the activities
are expected to be completed by December 31, 2005.
1678229v2 2
o�t-ia�
Section 8. Other Specific Development Expected to Occur within Redevelopment Area.
The I�RA does not anticipate that other future development in the T� Increment Financing
District will occur.
Section 9. Estimated Cost of Proiect; Tas Increment Financine Plan Budget The HRA
has detennined that it will be necessary to provide assistance for certain public costs of the
Development. To facilitate the Development witlun the Tas Increment Financing District, tYus
Tas Increment Financing Plan authorizes the use of tax increment financing to pay for a portion
of the cost of certain eligible expenses. The estimate of public costs and uses of funds associated
with Tax Increment Financing District is outlined on E�ibit B.
The HRA may spend tas increments or other revenues identified in Section 11 hereof in
other azeas of the City. Any expenditure of tax increments outside the Tax Increment District
will comply with the pooling limitations described under Section 24, pazagraph 2, as modified by
paragraph 4 thereof.
Estimated costs associated with Tas Increment Financing District are subject to change
and may be reallocated between line items by a resolution of the IIRA. The cost of all activities
to be financed by the tas increment will not exceed, without formal modification, the budget for
the tax increments set forth on E�ibit B.
Section 10. Estimated Amount of Bonded Indebtedness The expenditures authorized by
this Tas Increment Financing Plan may be paid for either on a pay-as-you-go basis or paid from
the proceeds of tax increment revenue bonds or notes. If bonded indebtedness is issued by the
HRA or the City, the principal amount of permanent long term financing is estimated not to
exceed $1,000,000.
Section 11. Sources of Revenue The costs ouflined in Section 9 above will be financed
from proceeds of the sale of revenue bonds or notes, or on a pay as you go basis through the
annual collecrion of t� increments. Other sources of revenues to pay the costs include sales tax
revenues, loans of general funds of the HRA and Ciry, land sale proceeds, proceeds from the sale
of non-tas increment revenue bonds, grants ar loans from the Metropolitan Council or private
financing obtained by the private developers. The market value upon completion of the Project
is estimated to be approximately $6,700,000.
Section 12. Estimated Cantured Tax Capacitv and Estimate of Tas Increment. The most
recent tax capacity of Tax Increment Financing District is estimated to be $6,861 as of January 2,
2004. It is anticipated that the original tax capacity will not be reduced as a result of the
reclassification of the property to housing. The captured tax capacity of Tax Increment
Financing District, at the completion of development which is estimated to occur by December
31, 2005, is estimated to be $93,640.
The HRA elects to retain all of the captured ta�c capacity to finance the costs of TaY
Tncrement Financing District. The HRA elects the method of tas increment computation set forth
in Minnesota Statutes, Section 469.177, Subd. 3(a).
Section 13. Twe of Taac Increment Financin¢ District The IIRA, in determining the
need to create a tax increment fmancing district in accardance with the T� Increment Financing
Act, finds that the T� Increment Financing District, is a housing district pursuant to Minnesota
Statutes, Section 469.174, Subd. 11 as defined below:
"Housing district" means a type of tax increment financing district which consists
of a project or a portion of a project intended for occupancy, in part, by persons or
families of low and moderate income as defined in Chapter 462A, Title II of the
1678229v2 3
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National Housing Act of 1934, the Narional Housing Act of 1959, the United
States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as
amended, and any other similaz present or future federal, state or municipal
legislation, or the regulations promulgated under any of those acts. A district does
not qualify as a housing dish if the fair market value of the improvements
which are conshucted in the dishict for commercial uses or for uses other than
low and moderate income housing 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 unprovements may be determined using
the cost of construction, capitalized income, or other appropriate method of
estimating market value.
Minnesota Statutes, Section 469.1761 provides that far residential rental property, the property
must satisfy the income requirements for a residential rental project as defined in Section 142(d)
of the Internal Revenue Code, as amended, which provides that a housing development shall be
designed to be affordable by persons and families with adjusted gross income of not in excess of
the following limits: (1) at least twenty percent (20%) of the dwelling units are held for
occupancy by families or individuals with adjusted gross income not in excess of fifty percent
(50%) of the median family income as estimated by HLJA for the area; or (ii) at least forty
percent (40%) of the dwelling units are held for occupancy by families or individuals with
adjusted gross income not in excess of sixty percent (60%) of the median family income as
estimated by IILJD for the area. Minnesota Statutes, Section 469.1761 also provides that a
property also satisfies the requirements of Section 142(d) of the Internal Revenue Code, as
amended, if fifty percent (50%) of the residential units of the project are occupied by individuals
whose income is eighty percent (80%) or less of area median gross income. These income
restrictions apply for the duration of the T� Increment Financing District.
In meeting the statutory criteria described above, the HRA relies on the following facts
and findings:
The Developer has represented in the Development Agreement the Project will
consist of approximately 70 rental units, of which at least ten percent (10%) (i.e.,
7 units) will be initially rented and occupied by individuals whose family income
is less than or equal to thirty percent (30%) of inedian income. The Developer has
also represented that at least ten percent (10%) of such units (i.e., 7 units) will be
initially rented and occupied by individuals whose family income is less than or
equal to fifty percent (50%) of inedian income. The Developer has further
represented that the remaining eighry percent (80%) of the uniYs (i.e., 56 units)
will be initially rented and occupied by individuals whose family income is less
than or equal to sixty percent (60%) of inedian income.
The market value of improvements for other than low and moderate income
housing or commercial property will be less than 20% of the total fair market
value of the planned improvements.
The Tas Increment Financing District qualifies as a housing district, in that it
meets all of the criteria listed above. It is anticipated that 100% of the planned
improvements in the Tas Increment Financing District will be for low and
moderate income housing purposes.
The above requirements apply for the duration of the Ta�c Increment Financing
District.
Taac increments derived from a housing district must be used solely to finance the
1678229v2
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cost of housing projects as defined above. The cost of public improvements
directly related to the housing projects and the allocated administrative expenses
of the City may be included in the cost of a housing project.
Section 14. Duration of Tax Increment Financina District. The duration of Tax
Increment Financing District will be 25 yeazs from the receipt of the first tax increment. The
date of receipt of the first tax increment is expected to be the first half of 2007. Attached as
Exhibit C is the projected receipt of taY increments from the TaY Increment Financing District.
Section 15. Estimated Impact on Other Taacing Jurisdictions. Since the construction
within the Tax increment Financing District would not have occurred without tax increment
fmancing, the impact is $0 to the other taYing jurisdictions. Notwithstanding the fact that the
construction would not have occurred without tax increment assistance, the estimated impact of
Tas Increment Financing District if the "but for" test was not met is set forth on Exhibit D.
Section 16. Modification of TaY Increment Financine District and/or Taa� Increment
Financine Plan. No modifications to Tax Increment Financing District or the TaY Increment
Financing Plan have been made as of the date hereof.
Section 17. Modifications to Tax Increment Financing District.
In accordance with Minnesota Statutes, Section 469.175, Subd. 4, any:
1. reduction or enlargement of the geographic area of the Tax Increment Financing
District;
2. increase in amount of bonded indebtedness to be incurred, including a
deternunation to capitalize interest on debt if that determination was not a part of
the original plan, or to increase or decrease the amount of interest on the debt to
be capitalized;
3. increase in the portion of the captured net tax capacity to be retained by the HRA;
4. increase in total estimated taY increment expendihues; or
5. designation of additional property to be acquired by the IIRA,
shall be approved upon notice and after the discussion, public hearing and findings required for
approval of the original Tax Increment Financing Plan.
The geographic area of the Tax Increment Financing District may be reduced, but shall
not be enlarged after five years following the date of certification of the original net tax capacity
by the County Auditor. The requirements of this paragraph do not apply if (1) the only
modification is elimination of parcel(s) from the Tax Increment Financing District, and (2)(A)
the current net tax capacity of the parcel(s) eliminated from the Tax Increment Financing District
equals or exceeds the net tax capacity of those parcel(s) in the Tax Increment Financing District's
original net tax capacity, ar(B) the HRA agrees that, notwithstanding Minnesota Statutes,
Section 469.177, Subd. 1, the original net tas capacity will be reduced by no more than the
current net tax capacity of the parcel(s) eliminated from the Taac Increment Financing District.
The HRA must notify the County Auditor of any modification that reduces or enlarges the
geographic area of the Taac Increment Financing District or the Redevelopment Project Area.
Modifications to Tas Increment Financing District in the form of a budget modification or an
expansion of the boundaries will be recorded in the Tax Increment Financing Plan.
1678229v2 5
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Section 18. Administrative Expenses.
In accordance with Minnesota Statutes, Section 469.174, Subd. 14, and Minnesota
Statutes, Section 469176, Subd. 3, administrarive expenses means all expenditures of the HI2A,
other than:
amounts paid for the purchase of land or amounts paid to contractors or others
providing materials and services, including architecturai 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 far services provided by bond
counsel, fiscal consultants, and planning or economic development consultants. Tax increment
may be used to pay any authorized and documented administrative expenses for the Tax
Increment Financing District up to but not to exceed 10 percent of the total taac increment
expenditures authorized by this Tas Increment Financing Plan or the total tas increment
expenditures, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, ta�c increments may be used
to pay for the county's actual administrative expenses incurred in connection with the Taa�
Increment Financing District. The county may require payment of those expenses by February 15
of the year following the year the expenses were incurred.
Pursuant to Minnesota Statutes, Section 469.177, Subd. 1 l, the county treasurer shall
deduct an amount equal to approximately thiriy-six hundredths of one percent (.36%) of any tas
increment distributed to the HRA and the county treasurer shall pay the amount deducted to the
state treasurer for deposit in the state general fund to be appropriated to the State Auditar for the
cost of financial reporting of tas increment financing information and the cost of examining and
auditing authorities' use of tas increment financing.
Section 19. Limitation of Increment.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 1(a), no taac increment shall be
paid to the HRA far the Tax Increment Financing District after three (3) years from the date of
certification of the original net taY capacity value of the taxable property in the Tas Increment
Financing District by the County Auditor unless within the three (3) year period:
(1) bonds haue been issued pursuant to Minnesota Statutes, Section
469.178, ar in aid of a proj ect pursuant to any other law, except revenue bonds
issued pursuant to Minnesota Statutes, Sections 469.152 to 469.1651, or
(2) the FIRA has acquired property within the Tax Increment
Financing District, or
(3) the HRA has constructed or caused to be constructed public
improvements within the Tas Increment Financing District.
The tax increment pledged to the payment of bonds and interest thereon may be
1678229v2
a�}- �osq
discharged and may be termivated 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
payxnent 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 tas capacity of
the taac increment financing district pursuant to Minnesota Statutes, Section
469177, no demolition, rehabilitarion or renovation of property or other site
prepararion, including qualified improvement of a street adjacent to a parcel but
not installation of utility service including sewer or water systems, has been
commenced on a pazcel located within a tas increment financing district by the
authority or by the owner of the parcel in accordance with the taY increment
financing plan, no additional tax increment may be taken from that pazcel and the
original net taac capacity of that pazcel shall be excluded from the original net tax
capacity of the tax increment financing district. If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or renovation or
other site preparation on that parcel including qualified improvement of a street
adjacent to that parcel, in accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the activity has commenced and
the county auditor shall certify the net taac capacity thereof as most recently
certified by the commissioner of revenue and add it to the original net tax capacity
of the tax increment financing district. The county auditor must enforce the
provisions of this subdivision. For purposes of this subdivision, qualified
improvements of a street are limited to (1) construction or opening of a new slreet,
(2) relocation of a street, and (3) substantial reconstruction or rebuilding of an
existing street.
Section 20. 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 Tax Increment Financing District for the following purposes:
1. to pay the principal of and interest on bonds used to finance a project;
2. to finance, or otherwise pay the capital and administration costs of the
Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.001
to 469.047;
3. to pay for project costs as identified in the budget;
4. to finance, or otherwise pay for other puxposes as provided in Minnesota Statutes,
Section 469.176, Subd. 4;
to pay principal and interest on any loans, advances or other payments made to the
IIRA or for the benefit of Redevelopment Project Area by the developer;
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 tas increment bonds or bonds issued pursuant to the Tax Increment
Financing Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota
Statutes, Sections 469.152 to 469.1651, ar both; and
7. to accumulate or maintain a reserve securing the payment when due of the
1678229v2
a'{-ID59
principal and interest on the taY increment bonds or bonds issued pursuant to
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to
469.1651, or both.
These revenues shall not be used to circumvent any levy limitations applicable to the
HRA nar for other purposes prohibited by Minnesota Statutes, Section 469176, subd. 4.
Section 21. Notification of Prior Planned Improvements.
The HRA shall, after due and diligent seazch, accompany its request for certification to
the County Auditor or its notice of the Taac Increment Financing Dishict enlargement with a
listing of all properties within the Tax Increment Financing District or area of enlargement for
which building pernuts have been issued during the eighteen (18) months immediately preceding
approval of the TaY Increment Financing Plan by the municipality pursuant to Minnesota
Statutes, Section 469.175, Subd. 3. The County Auditar shall increase the original value of the
Tax Increment Financing District by the value of improvements far which a building permit was
issued.
Section 22. Excess Tax Increments.
Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in which the taY
increment exceeds the amount necessary to pay the costs authorized by the Plan, including the
amount necessary to cancel any tas levy as provided in Minnesota Statutes, Section 475.61,
Subd. 3, the HRA shall use the excess amount to do any of the following:
prepay any outstanding bonds;
2. discharge the pledge of tas increment therefor;
pay into an escrow account dedicated to the payment of such bond; or
4. return the excess to the County Auditor for redistribution to the respective taxing
jurisdicrions in proportion to their local tax rates.
In addition, the HRA may, subject to the limitations set forth herein, choose to modify the
Plan in order to finance additional public costs in the Tas Increment Financing Disirict or
Redevelopment Project Area.
Section 23. Requirements for Agreements with Developers.
The IIRA will review any proposal for private development to determine its conformance
with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate
this effort, the following documents may be requested for review and approval: site plan,
construction, mechanical, and electrical system drawings, landscaping plan, grading and storm
drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the
City to demonstrate the conformance of the development with city plans and ordinances. The
IIR A 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 ten percent
(10%), by acreage, of the property to be acquired in the Tax Increment Financing District as set
forth in the Tax Increment Financing Plan shall at any time be owned by the HRA as a result of
acquisition with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 469.178,
without the HRA having, prior to acquisition in excess of ten percent (10%) of the acreage,
concluded an agreement for the development or redevelopment of the property acquired and
1678229v2
54-1059
which provides recourse for the HRA should the development or redevelopment not be
completed.
Section 24. Other Limitations on the Use of Talc Increment.
General Limitations All revenue derived from tas increment shall be used in
accordance with the Tas Increment Financing Plan. The revenues shall be used to
finance, or otherwise pay the capital and administration costs of the
Redevelopment Project Area pursuant to the HRA Law;
These revenues shall not be used to circumvent existing levy limit law. No
revenues derived from taac increment shall be used for the acquisition,
construction, renovation, operation or maintenance of a building to be used
prunarily and regulazly for conducting the business of a municipality, county,
school district, or any other local unit of government or the state or federal
government, or for a commons area used as a public park, or a facility used for
social, recreation or conference purposes. This provision shall not prohibit the use
of revenues derived from tas increments for the construction or renovation of a
parking struchxre.
Pooling Limitations. Except as otherwise provided in paragraph 4 below, at least
seventy-five percent (75%) of t� increments from the Tax Increment Financing
District must be expended on activities in the Tax Increment Financing District or
to pay bonds, to the extent that the proceeds of the bonds were used to finance
activities within said district or to pay, or secure payment of, debt service on credit
enhanced bonds. Not more than 25 percent of said t� increments may be
expended, through a development fund or otherwise, on activities outside of the
Tax Increment Financing District except to pay, or secure payment of, debt
service on credit enhanced bonds. For purposes of applying this restriction, all
administrative expenses must be treated as if they were solely for activities
outside of the Tas Increment Financing District.
Five Year Limitation on Commitment of Taac Increments Tax increments derived
from the Tax Increment Financing District shall be deemed to have satisfied the
75 percent test set forth in paragraph (2) above only if the five year rule set forth
in Minnesota Statutes, Section 469.1763, Subd. 3, has been satisfied; and
beginning with the sixth year following certification of the T� Increment
Financing District, 75 percent of said tax increments that remain after
expenditures permitted under said five year rule must be used only to pay
previously commitment expenditures or credit enhanced bonds as more fully set
forth in Minnesota Statutes, Section 469.1763, Subd. 5.
4. Expenditures Outside District. The Authority hereby elects to spend an additional
ten percent of the t� increments on activities located outside the Tax Increment
District as permitted by Minnesota Statutes, Section 469.1763, subd. 2(d)
provided that the expenditures meet the following requirements:
(1) they are used exclusively to assist housing that meets the
requirements far a qualified low-income building as defined in Section 42 of the
Internal Revenue Code of 1986, as amended (the "Code");
(2) they do not exceed the qualified basis of housing as defined under
Section 42(c) of the Code less the amount of any credit allowed under Section 42
of the Code, and
1678229v2
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(3) they aze used to (i) acquire and prepaze the site for housing, (ii)
acquire, conshuct or rehabilitate the housing or (iii) make public improvements
directly related to the housing.
Section 25. County Road Costs.
Pursuant to Minnesota Statutes, Section 469.175, Subd. la, the county board may require
the HRA to pay for all or part of the cost of county road improvements if, the proposed
development to be assisted by tax increment will, in the judgment of the county, substantially
increase the use of county roads requiring construction of road improvements or other road costs
and if the road unprovements are not scheduled within the next five years under a capital
improvement plan or other county plan.
In the opinion of the HRA and consultants, the proposed development outlined in this
Plan 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 thiriy days of receipt of this Plan.
Section 26. Assessment Agreements.
Pursuant to Minnesota Statutes, Secrion 469.177, Subd. 8, the HRA may enter into an
agreement in recordable form with the developer of property within the Tax Increment Financing
District which establishes a minimum mazket value of the land and completed improvements far
the duration of the Tasc Increment Financing District. The assessment agreement shall be
presented to the assessor who shall review the plans and specifications for the improvements
constructed, review the market value previously assigned to the land upon which the
improvements are to be constructed and, so long as the minimum market value contained in the
assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the
assessor may certify the minimum mazket value agreement.
Section 27. Admimsiration of the Tax Increment Financing District.
Administration of the Tax Increment Financing District will be handled by the Executive
Directar of the HRA.
Section 28. Financial Reporting Requirements.
The HRA will comply with all reporting requirements of Minnesota Statutes, Section
469.175, Subd. 5, 6 and 6a.
1678229v2 10
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EXHIBIT A
1678229v2 A-1
Map #1 of Ta�c
Increment
Financing
Dishict
0'{-Ia59
Z�
iSap i2 of Yaa Iacremeat Pinanei� District
��
16�82z9V2 A-2
t�-Io59
. �: :
Tax Increment Financing Plan Budget
TAX INGREMENT FlNANCING PLP.N BUDGEi
BU�GET FOR HRA APPROVAL
NameofDistrict: Payne-Phale�Seniortqts
Type of D"isl�ict Housing Disfrict
Duration of District 26 years foliowirg 4st mllection
Prepafed by SptinGSted InCAry02teE (9/30/20W) Paae 1 PavrePhalen TIF PUn HRA RuMwt 4AlI.M xicTl Runnne
1678229v2 B-1
0�-�ti59
EXHIBIT C
Projected Tax Increments
Payne-Phalen Senior Lofts 9.2�200. RevSetl DATE
Paya6le Yeaz
CurcentASSessetlVaW=(2004) 5592,500 2007 N08 2009
- az�dY.4xte a✓RdeAS'• 171A7�H TaG9Pa�Year ���.$0� t��`�.A� 1��.$�
Infl=voi Rate Q06°/a
PaY � Y�u 90 2:e/Date 6CD% tC1312004
Le55. Retametl Times: Less' Less: Less
5¢mannva� iotN On9nz� CapwrW Ta Smu-0umuat Statefw4 Couny Admn Sem:Pa�nua�
PerioC �e�Tax NetT� NetTu Capau.y GrossTat DeCUC�on Atlrten Retdnage f�etiax
'e
EeMmg Capxaty Capacity CaOaaly �ate Iruemani 0.360°n 51.001yr. i0.00% Ncement
�0/3V200e 8.fi6�
5I312CA5 6.SGt
3
10/312005 6.36t
5:3ll2pp6 e,861
�aauzoos s,eai
5B1/2�0] !CC S�
t0/3i2yJ1 ;Op.50p
5i3t20�8 PvD.SG�
OH
10/31RJU2 IDO.SW
Y3t2009 iL`J.:✓Y)
ID13ll2009 100.500
5t3120t0 �CG,SOG
f0(312010 1 W,506
5I31�1011 t00.50Q
sa•asnon mosoo
S�3V20i2 100.50�
1013tROt2 t00.W0
931rz013 iG0,500
iN31R0f3 1CO3500
531R014 100.W0
103t20�4 500.50C
5(31I2�115 t00.bC0
1C/3112015 f00,5Q0
5/3�2010 i00.500
1CI312015 1 W,560
S131129t� 10.,".500
t0/3V201t iC0.5C0
5131Y2018 '06,Sp1
TO131/2018 100.500
5/31I2019 t00S00
10131l2019 i W SUO
5/31f2020 i0tl.500
10/31YL020 �06,500
srainozi ia�soo
10I31Yt021 tOC.500
5�3t2C22 tCA,SCD
iW3tRp22 M1p0.5'�9
S'312023 t00.5W
fOt312023 t60,500
93V2024 t00,500
t0/3L2024 100.500
6131RA25 �M;,30C
10131.2p25 SCO,SOG
5/3i12G2o t00,5G0
;0131pA2G :OQSUO
5f3t202> t00,51IDI
iN3ll202T �00.500
SI3V2028 t00.5W
5N35R02A tLb.50p
sravzozs ico,soo
�orsvzozs ix,soo
513112p30 td.^.500
10l3112930 iG0,5W
9312a31 1CO
56135RW1 1M1.SW
SI31:2032 �€h�.SW
iwai.2osz iai.soa
6.801
6,8'01
0 861
686�
6,86�
6.B6t
'0.861
6,8fi1
6.861
L,BO'�
fi.801
6.885
6,8G�
6.861
6,861
8,861
6,861
'0.861
6,8Ei
6,86'.
6 861
6.881
6,861
$.861
6 p61
6 861
8.061
6.881
'0.661
6.891
6.851
E.e6i
6.Bv1
6,BO1
8.861
6,BP1
6,E6�
6,861
6,861
5.261
6,361
6,8G �
6,3G5
6.8Gt
5.861
6,BG�
6,86�
fr,8v'�
6.065
6.86 i
5,86?
6.86�
6.861
6.861
G.861
mo.saa
�w.�o
0
0
0
0
0
53,x0
93,8<0
93,640
93.6e�
93,6<0
93,640
93,640
93,640
43,540
93.540
93,6d0
93,640
93,BA0
93,6a0
93.640
93,640
33,640
93,'oad
93.640
93840
93.640
va.sao
93.6C0
93,5C0
93,6G0
43,540
93.Sa0
93,690
93,640
91,fiM1
93,640
93,fi46
93.6a0
93,640
93.840
�J3,640
93.fi40
99,6§9
83.640
93,E40
93,fi40
93,800
93.680
sa,sao
93.640
93,610
93,BA0
93.640
93,560
9�,646
0
0
izao�ow, o
:zz.cra^ro s�.is2
122.0]0°% 5'{152
iaoroo s�.isz
122.OPU% 5].152
in.wor, sr.isz
122090°k 5).t52
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Fiscal and Economic Impact on Other Taacing Jurisdictions
* Impact Statement:
A lower tax rate for the tawng junsdic[ions woultl result'rf the hypothetical P`ojectetl Retained
Captured Net Taz Capacity became available. The Hypothetical Decrease in Local Tax Rate is
insignificant to each taxing jurisdictions and resulis in an werall decrease of 0.057 % as stated
above.
The pro7ecteC Retained Captured Net Tax Capac�ty �s iwt awtlable W the taxng junstl�ctwns
antl iherefore has no impact on the taxes levied by the �uristlictions.
(1) Only�ep2senh 4.90%of(ohl tav2le, an iniB��ficanf artrount
(2) Tana6le net taxwpaurtyis ralcNafetlbysubbacGnBl�e capNredTfFandfixal tlispanrycanMbuGOn (mm the fobl tarcapapty.
167822h2 �-1
City of SaiM Paul
Estimated impact an Other Taxi`g Juristlictions
Payne-Phalen Seniar Loffs
D�{ -1059
NOTICE OF PUBLIC HEARING
ON THE ADOPTION OF A TAX INCREMENT FINANCING
PLAN FOR PAYNE PHALEN
TAX INCREMENT FINANCING DISTRICT AND
THE DEVELOPMENT PLAN FOR THE PAYNE PHALEN REDEVELOPMENT
PROJECT AREA
NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Paul,
Minnesota (the "City") will meet on Wednesday, November 3, 2004, at 5:30 pm., or as
soon thereafter as the matter may be heazd, at the City Council Chambers, City Hall, 15
West Kellogg Boulevard, Saint Paul, Minnesota, for the purpose of conducting a public
hearing on the proposal of the Housing and Redevelopment Authority of the City of Saint
Paul, Minnesota (the "Authority") to establish the Payne Phalen Redevelopment Project
Area (the "Redevelopment Project Area") and adopt the Redevelopment Plan therefore
(the "Redevelopment Plan") and establish the Payne Phalen TaY Increment Financing
District within the Payne Phalen Redevelopment Project Area and adopt a Taac Increment
Financing Plan therefore.
A map showing the property to be included in the Payne Phalen Tax Increment
Financing District and the boundaries of the Redevelopment Project Area, are set forth
below.
A draft copy of the proposed Tas Increment Financing Plan and Redevelopment
Plan along with attactunents and exhibits thereto, will be available for public inspection
at the City Clerk's Office, 386 City Hall and with the Authority at City Hall Aruiex, 12th
Floor, 25 West Fourth Street, St. Paul, Minnesota 55102, and are auailable for inspection
during regulaz business hours commencing on Saturday, October 23, 2004.
At the public hearing, all interested parties will be given an opportunity to be
heard or to submit written comments.
BY ORDER OF THE CITY COUNCIL
OF THE CITY OF SA1NT PAUL
/s/ Donald Luna
City Clerk
1700387v1
d�1-tosy
city of saint paui
pianning commission resolution
file number 04-100
date October 22, 2004
ADOPTING THE REDEVELOPMENT PLAN
FOR PAYNE-PHALEN BOIILEVARD 1�AiN
STREET REDEVELOPMENT PROJECT AREA
WHEREAS, the Planning Commission on March 9, 2001 and the City Council on Apri1
4, 2001 approved the Phalen Corridor Development Strategy; and
WHEREAS, the Planning Commission on September 13, 2002, iniriated the preparation
of an amendment to the Phalen Corridor Development Strategy suxmnary for the Middle Secfion
of the Phalen Corridor and a 40-Acre Study; and
WHEREAS, on August 13, 2004, the Planning Comxnission recommended approval of
the Amendment for the Middle Section (Edgerton to Eazl) ofthe Phalen Corridor Development
Strategy; and
WHEREAS, the Redevelopment Plan for the Payne-Phalen Boulevard Main Street
Redevelopment ProjectArea (the "Payne-Phalen Plan') has been submitted to the Housing
and Redevelopment Authority of the City of Saint Paui (the "Autharity") for its review; and
WHEREAS, Minnesota Statutes Section 469.027 provides that the authority shall
t*_ansmit any such plans to the planning agency of the city in which the area to be redeveloped is
situated for its st�xdy and a written opinion; and
WHEREAS, the Redevelopment Plan was proposed to implement the goals and objectives of the
Phalen Corridor Strategy and the Amendment for the Middie Section; and
moved by McCall
seconded by
in favor Unanimous
against
o�l -I o5Q
WHEREAS, Redevelopment Plan discusses the need to undertake major improvements to
the new gateway area created by the conshuction of Phalen Boulevazd, including revitalization to
build on the necc access to a nei�hborhood commercial street and the need to bring in new
housing in a variety of options combined with some commerciaUretail services not otherwise
available on Payne Avenue; and
WHEREAS, the Redevelopment Plan covers approacimately an eight block area that may
be developed over four phases within a 4-5 yeaz period and could provide up to 249 housing
units, 20,000 sq/ft in comxnerciaUretail use and rehabilitation of up to 40 e�sting $ousing units,
with an investment that could exceed $40.0 million; and
�NHEREAS, the Redevelopment Plan allows certain financing to be brought to the
Project Area to assist in these revitalization efforts and puts in place overall development and
design objecfives; and
WHEREAS, the developer of the first project, a 73 unit senior housing building at Payne-
Phalen, has requested appro�nately $1.45 million in tax increment financing to assist in this
phase of development; and
Wf�REAS, the Authority has approved moving forward with the creation of a 25-yeaz
housing tax increment financing district to assist in housing development, which requires
inclusion in a redevelopment plan; and
WFIEREAS, the Neighborhood and Current Planning Committee recommended approval
of the Redevelopment Plan at theu committee meeting on October 13, 2004; and
NOW, Tf�REFORE, BE IT RESOLVED, that the Saint Paul Planning Commission
finds the Redevelopment Plan for the Payne-Phalen Boulevazd IViain Street Redevelopment
Project Area consistent with the Saint Paul Comprehensive Plan.
FURTHER BE IT RESOLVED, that the Planning Commission hereby recommends
adoption of the Redevelopment Plan for the Payne-Phalen Boulevard Main Street
Redevelopment Project Area attached hereto and directs the Planning Adminstrator to forward
the Redevelopment Plan and this resolution to the Mayor and City Council for their review and
adoption.
� i f
REDEVELOP�'IENT PLAN
PAYNE-PI3ALEN SOL'LEVARD NIAIN STREET
REDEVELOPMENT PROJECT
SAIVT PAUL, MINNESOTA
October, 2004
fl'f-IO5p
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF SAINT PAUL, MINNESOTA
��I -io59
TABLE OF CONTENTS
I. PURPOSE
II. DESCRIPTION OF REDEVELOPrIENT PROJECT AREA
III. BACKGROUIV
IV. DEVELOPMENT OBJECTIVE
V. URBAN DESIGN GtiIDELINES
Vi. REDEVELOPMENT TECHNIQUES TO ACHIEVE PLAN OBJECTIVES
VII. OTHER NECES5ARY PROVISIOVS TO MEET STATE/LOCAL
REQUIREMENTS
VIII. PROVI5IONS FOR AMENDiNG PLAN
a�f -� D54
I. PiJRPOSE
The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HIt-A) proposes to
establish the PAY�IE-PHALEN BOLTLEVARD NLAN STREET REDEVELOPME� PR03ECT
AREA, as provided for in Minnesota Statutes, Chapter 469.002, Subd. 14. This document represents the
REDEVELOPMENT PLAl�i as provided for in Minnesota Statutes, Chapter 469.002, Subd. 16. The
redevelopment proj ect being undertaken pursuant to this Redevelopment Plan includes the work and
undertaldngs set forth in Minnesota Statutes, Section 469.002, subdivision 14, including specifically the
acquisition of blighted areas and other real property far the purpose of removing, preventing or reducing
bhght, blighting factors or causes of blight.
II. DESCRIPTION OF REDEVELOPMENT PROJECT AREA
The boundaries of the Payne-Phalen Boulevazd Main street Redevelopment Project Area as illustrated by
E�ibit A attached are described as follows: Beginning at the intersection of Edgerton Street and York
Avenue and going East along the centerline of Yark Avenue to the centerline of Weide Street, thence
South along the centerline of Weide Street to the intexsection wrth vacated Whitall Street; thence west
along vacated Whitall Street to the intersection with the Regional Rail Authority Right-of-Way and
following the right-of-way to the intersection with the alley located in Block 45 of C. Weide's and thence
continuing west across Payne Avenue down the platted alley to the intersection of the westerly ll.0 feet
of Lot 19, Block 46, C. Weides Subdivision; thence North to the intersection with Whitall Street and
thence West on Whitall Street to the intersection with Edgerton Street. (See E�ibit A)
IIT. BACKGROUND
Thz Payne-Phalen Boulevazd Main Street Redevelopment Project t�rea is located on the East Side of
Samt Paul �ust adjacent to the north of the Phalen Gozridor, and serves as a maj or gateway into the East
Side and its neighborhood commercial corridors. The Project Area is located within the Phalen Corridor
Development Strategy recommended by the Planning Commission on March 9, 2001 and adopted by the
Ciry Council on Apri14, 2001. On August 13, 2004, the Planning Commission recommended approval
of the AmendmenY for Middle Section (Edgerton to Earl) of the Phalen Conidor Development Strategy of
which the Project Area is a part. The Project Area includes a mix of uses, including smaller
neighborhood businesses, bars, auto uses and approximately 85 residences, pnmarily single family and
duplex.
While some of the buildings in the area are in good condition, others are deteriorated. Many of the
commercial and residenrial buildings are functionally obsolete and structurally substandard, and
represent an underutilization of the property. With the construction of new Phalen Boulevazd being
completed to Arcade Street by the end of 2004 the area can benefit from selecrive redevelopment that
creates a new urban village providing for new housing units, neighborhood retail space, renewed transrt
connection and job opportunities with its immediate connection to Williams Hill and Westminster
7unction LightIndustrialParks.
�
04-,o5y
While the azea has some assets, without major gateway nnprovements at the comer of Payne and Phalen
Bouleva*d the Project Area is unlikely to meet its full potential. Current patterns of land use aze likely to
continue because new development would likely be hampered by- fragxnented property ounership; the
presence of deteriorated, structurally substandard structures that must be removed for decelopment to
proceed; and a poor public perception of the azea. The development of the new Phalen Boulecazd
provides the impetus to create this new urban villa�e concept and builds on hea�y inveshnent by the City
already in place and will help to strengthen the neighborhood commercial l�Iain Street areas .
The Payne-Phalen District 5 Community Council, the Phalen Corridor Imitative Task Force and the City
of Saint Paul recognized that need to develop a plan to guide redevelopment in the Payne-Phalen
Boulevard Main Street Redevelopment Project Area. Organizations involved in the creation of this plan
include: Planning Commission, District 5 Community Council, the Phalen Corridor Initiative Task Force,
the East Side Neighborhood Development Company, the Railroad Island Task Farce, Friends of Swede
Hollow, John A. 7ohnson Achievement Plus Elementary School, East YMCA, Payne-Arcade Business
Association, East Side Area Business Association, and ECON Weed and Seed. Block clubs in the area
were represented, as were individuals and individual businesses. City and County officials also
participated.
Meetings of some of these groups began in May 2002. In September 2002, the Planning Commission
created the Middle Section Task Force to provide a framewark for the discussions and recommendations.
The task force met biweekly during the fall to discuss altematives for the Payne/Phalen azea. These
altematives were included in the Request for Qualificarions. Monthly meetings followed to review the
development concept for the remainder of the area which included the Project Area. The Amendment for
Middie Section (Edgerton to Earl) was reviewed and recommended by the Planning Cominissioner
August 13, 2004. The Redeployment plan will be reviewed by the Planning Commission. This process
will culminate in the City's adoprion of both the area plan as part of the City's Comprehensive Plan, and
the Redevelopment Plan to guide the implementation activities of the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota.
IV. DEVELOPMENT OBJECTIVES
The development objectives of the Payne-Phalen Boulevard Ivlain Street Redevelopmenc Pro�ect Area are
based on the policy directives of the Saint Paul Comprehensive Plan, including the Land Use Plan and
Housing Plan chapters, and the recommendations of the Payne-Phalen Boulevard Main Sireet
Redevelopment Project.
A. The Payne-Phalen Boulevard Main Street Redevelopment Project Area is identified as part of the
Phalen Corridor Strategy in the adopted Land Use Plan. The plan encourages redevelopment
along corridors that integrates business and industrial j ob creation with housing development and
the improvements of existing neighborhoods. The Land Use Plan encourages increasing the
density of jobs and housing along iransit routes, stating, "New urban housing, offices and retail
development that should a11 contribute through densiry and site design to the ndership base for
public transformation on the Payne, East Seventh and Minnehaha routes.
B. Both the Land Use Plan and Housing Plan support building new housing throughout the City,
with a goal of 7,500 new units by 2020. Aevelopment of additional housing in the Project Area
is encouraged if mazket condirions are supportive to bring needed housing densiry to the azea to
�-Io59
support e�sting commercial and retail uses and even improve/encourage further investment in
the area businesses. Good housing desia solutions thaf ineet newer mazket needs and
complement the existing neighborhood will be encouragzd. Particular a?tention w�ll be paid to
assessing and meeting the needs of a�owing number of older persons who aze lookin� for
altemative housing in their own neighborhoods. The Housing Plan also requires that a certain
proportion of new housing units built be affordabie to low and moderate income households,
specifically, a muumum of 20 percent should be affordable to households with incomes below 50
percent of the regional median, with at least half of tho§e to be affordable to households with
incomes below 30 percent of the regional median,
C. The Payne-Phalen Boulevazd Main Street Redevelopment Project Area currently contains a miac
of uses, including office, retail, industrial and residential uses. The vision of the Payne-Phalen
Boulevard Main Sheet Redevelopment Project area is to continue the mixed use character of the
area, but improve this gateway into the East side of Saint Paul v✓ith high quality development that
adds jobs, housing umts, or services for the community and takes advantage of its location along
the new Phalen Boulevard corridor.
The sites in question offer vazied redevelopment opportunities. The Payne Avenue Main Street
revitalization effort offers old building charm and visual appeal. The views toward the
Southwest offer spectaculaz vistas of the State Capitol, Cathedral and downtown Saint Paul,
especially in the azeas where higher mixed use buildings and town homes are proposed. The
location of all the sites adjacent to the New Phalen Corridor create easy transportation access to
I-35E together with mass transit availability directly on Payne Avenue. The sites are adjacent to
Swede Aollow Park, and a maj or trail system (Bruce Vento Trail, Trillium/Troutbrook Trail
which both tie into the Gateway Trail). In addition to these amenities, addrtional recreation
space will also be developed in combination with the new Phalen Boulevard. (See E7chibit B)
The plan encourages a continuation of the mixed use nature of this area. Place highest density
along Edgerton and Payne at Phalen Boulevard; transition to lower density as development
moves away from Payne and Phalen Boulevazd. Any proposed development should be high
quality with attractive building design, materiais, and landscaping to create an improved gateway
image. New development should also be pedestrian-friendly, and attempt to create pedestrian
pathways and connecrions throughout the area, including an improved pedestrian link to the
Bruce Vento Trail System. Along the Payne Avenue frontage, supportive uses for housing being
developed, office, retail, and supportive non-automobile-oriented retail uses are most
appropriate. Design of buildings along Payne Avenue should be responsive to the scale and
design features outlined. (See Exhibit C)
V. LJRBAN DESIGN GUIDELINES
The following design guidelines should apply to any redevelopment project that is proposed for the area.
1. Create a sense of entry into St. Paul's East Side from the east and west on Phalen
Boulevazd. Design elements such as street trees, sidewalks, signage, and different
paving pattems can be used to create this sense of entry. These design elements should
be integrated into the development of the area.
o�t-►os�
2. In �eneral, new development should be designed with larger buildings at the main focal
corners and then create a graduallransirion back into the lower density residential
neighborhood.
3. T'he desia of new buildings, especially along Payne Avenue should reflect the design
elements of Payne Avenue. Door and window opening sizes, trim, materials, and the
height of street-front walls of new buildings can be designed to be more commercial
looking on the first floor and more residential looldng as it goes up to be able to
transition back into the residential area.
4. Street trees should be planted throughout the azea, and sidewalks developed on all streets
where they do not exist now, especially along Whitall and Wells and alI new streets that
will be put in for future development.
5. Parking lots should be placed to the side and rear of buildings, not in front. Padcing lots
should be screened from the street. Ramp or underground parldng should be built when
econoxnically feasible to limit the amount of land devoted to surface parldng.
6. New development should relate to the street and the rest of the community. Buildings
should be orienfed outward, rather than inward.
7. New development should be environmentally sustainable, to include:
- Zero-runoff or on site storm water retention. Zero-runoff is difficult to achieve
on urban sites, but storm water can be cleaned and detained on site for a time
before it enters the city storm sewer system. These ponds can be used as parks
and open spaces in the development.
Narive plantings. Using native plantings for landscaping can significantly
reduce maintenance and installation costs. The use of native plants can
elixninate the need for irrigation systems.
Encironmentally-sensitive design and construchon of buildmgs. GJhenever
possible, incorporate the following concepts in any new development: salvage
recyclable materials during building demolirion, design energy efficient
buildings that exceed current code requirements, incorporate salvaged and
recycled building materials in construction, and create healthy worlc and living
spaces.
VI. REDEVELOPMENT TECHNIQTJES TO ACHIEVE PLAN OBJECTIVES
This plan envisions the pemutted use of all techniques or powers authorized through applicable statutes
by the City, I�Rt�, Port Authority or other public agencies as appropriate and necessary to carry out the
implementation of the Plan. No provision of the Plan is to be taken to limit the full exercise af these
powers. The following techniques are cited as examples of ineans to actueve the objecrives presented in
Secfion IV above.
�
D4-►o5y
A. Support Private Initiatives.
Private initiative and investmen� is tne preierred means of achieving the objective; of
this plan, and will be encouraged. The HRA or the City may enter into agreements with
properiy owners or other persons in controt of a project site wYnch idenkfy specific
private responsibilities for the unprovement of the site and will seek private e arantees
to undertake redevelopment in accordance with this Plan:
To induce such aa eement, the HRA and the City will provide for, or cause to provide
for, the following as is necessary and appropriate:
1. Administration of those public processes and requirements deemed necessary to
support or allow developmenUredevelopment of property to occur in accordance
with this Plan. If applicable and advisable, the F�tA and the City wiIl provide
assistanca to developers to allow them to take responsibility for administrative
activities. These include, but aze not limited to:
* Coordination of pro� ect activity, financing and review with human
services agencies, citizen participation entities, and other state, regional
and federal government agencies;
* Initiation of vacarions, rezonings, dedication of public rights-of-way, or
other public actions as may become necessary to nnplement this Plan, in
accordance with state, regional and federal govemment agencies;
* Provision of standard municipal services to adequately insure public
health, safety and welfare;
* $nforcement of building codes, design controls, site covenants,
provisions to insure compliance with state and Iocal requirements
relating to non-discrimination, ineome levels, envu'onmental quality,
faithful performance and any other public objectives relating to the
purchase, development, improvement or use of the land;
* Facilitation of property exchanges.
2. Public improvements that include, but are not lunited to, installation,
construction or reconstruction of streets, pazkways, parldng facihties, utihties,
parks, walkway and trails, bridges and other public improvements or facilities as
necessary or desirable to cany out the objectives of this Plan.
Public improvements will be undertaleen in phases (of time and location) that
coincide with and promote rarional development pattems. Costs of such
improvements may be assessed to the sites served by them.
3. Fuiancing to provide affordable sources of financing to private companies
o�f -i�q
involved in developing components of this Plan. There aze several fmancing
mechanisms that can be used as appropriate to accomplish the objectives of this
Pian. They include, but are not limited to:
Tas Increment Financing
x Indushial Development Revenue Bond Loans (Taxable o: Ta�-exempt)
* Other Revenue Bond Loans (Taxable or Tax-exempt)
x Housing Revenue Bond Loans
" Mortgage Subsidy Bonds
* Acquisition/Lease/Sublease
x Land Lease
* Equity Participation
x Development and Rental Assistance Payments
M Interest Rate Reduction
* Implementation of statutory authonty for crearion of project and
undertaking of activities where it is appropriate to use other financing
methods
In selecting methods of proj ect finance, the HRA and the City will take into
account the fosms of other assistance available and negotiate with individual
developers so that a method can be chosen which provides sufficient incentive
for the developer to create a quality product.
B. Property Acquisrtion
As an alternative and/or complementary redevelopment technique, the HIZA or the City
may choose to acquire certain properiy either through exercise of eminent domain
according to the procedures established under Minnesota Statutes, Chapter 117 including
quick take if necessary, or through voluntary purchase. Acquisition of property will be
considered when property is found to have any of the following characteristics:
l. Blighted areas, buildings and other real property, where removing such can
remove, prevent or reduce blight or the cause of blight;
2. Open or undeveloped land blighted by virtue of conditions which have inhibited
normal development by private enterpnse;
3. Under used or inappropriately used property which may be converted to other
uses recommended by this Plan;
4. Property necessary to complete assembly of parcles which would be suitable for
redevelopment.
5. Properry declared to be unsafe or otherwise hazazdous to public health and
safety.
��{-�a59
6. Other activities deemed necessary or desirable to improve and prepare sites for
development, rehabilitation or redevelopment for uses in accordance with this
Plan;
Installation, construction or reconstruction of streets, parkways, uriliries, parks,
wallcways and trails, and other public unprovement or faciliries as necessary or
desirable for carrying out the objecrives of this Plan;
8. Such other property as necessary to accomplish the obj ectives of this Plan.
Specific properties to be acquired by the HRA or City pursuant to the exercise of
the power of eminent domain will be identified by resolution or by final order.
Acquisition of property by the City or HRA will be undertaken in accordance with
state statutes goveming procedures for such activity, including the provision of
relocation assistance services, payment and benefits in accordance with Minnesota
Statutes Chapter 117.
C. Land Disposition and Improvement Agreements
The HRA and the City will sell, lease or otherwise dispose of acquired property in
accordance with the requirements of applicable laws and plans, and subj ect to such terms
and conditions as the HRtI of the City deem appropriate to carry out the implementahon
of the Plan.
VII. OTHER NECESSARY PROVISIONS TO MEET STATE/LOCAL
REQUIREMENTS
A. Non-Discrunination.
Every contract for sale, lease or redevelopment of properiy witkun the Redevelopment
Project will require compliance with all state and local laws in effect from time to time,
prohibit discrimination or segregarion by reasons of race, religion, color, sex, or national
origin in the sale, lease or occupancy of the property, and require that this latter
provision be made a covenant rurming with the tand and be binding npon the redeveloper
and every successor in interest to the properry.
B. Vacafions, Rezonings, Dedicafions and Covenants.
Vacafions, rezonings, and dedications of public rights-of-way as may become necessary
shall be accomplished by separate acrions in accordance with state law and local
ordinances.
VIII. PROVISIONS FOR ANIENDING PLAN
The Redevelopment Plan may be modified at any time in the manner provided by law
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Exhibit C
GENERAI, OVERALL OBJECTIVES
The objectives listed below are intended to guide interested parties in considering and preparing a
submission for this RFQ. 'They will be a guide as the selected developer or decelopers work through
fmalizing development plans.
Land Use
1. Enhance economic impact on the community - There are variety of uses that would enhance
economic unpact. Substantial new office/retail development would have demonstrable positive
impacts along Payne, Arcade and East Seventh Street. Cultural and arts uses could establish a
point of destination for the neighborhood. Housing would also have a positive impact on retail
along Payne and Arcade, provided that enough new units aze developed. Major retail would
likely detract from the existing local retailers.
2. Create development that connects, rather than divides the community - Design any
redevelopment such that there are well-lit places, pedestrian connections (not bamers),
connecrions in street design/landscaping, gathering spaces, and such that enhance cultural and
social activities.
Mimmize the impacts of added traffic - Develop connections to the regional roadway and isansit
networks that rely as little as possible on local residential streets.
4. Create development that enhances the existing buildings that may remain including the
rehabihtation of single family homes, etc. within the total site and surrounding neighborhood
- Development should take full advantage of these unique sites. The development should
improve the physical nzture of the neighborhood by respecting adjacent uses, creating strong
design edges along Payne and the outer edges of the site.
5. Develop Mixed Use
Economic
6. Stimulate private investment and reinvestment in this underutilized section of the City - Public
expenditures are generally most effective when there is substanfial private investment.
Attracting tenants and owners that have strong financial bases also is an effective use of public
funds. Utilize public financial resources in a manner that conforms with the City's adopted
capital allocation and ta7c policies.
Follow the City's affordable housing guidelines - The City of St. Paul has adopted an overall
policy to have 20% of new units made available for affordable housing. The breakdown is 10%
of units at 30% of the median income and 10% of units at 50% of the median income. As we
work with a selected developer or developers on finalizing plans for these sites, PED will be
loolcing at the overall development of a11 sites to addxess affordability.
8. Add jobs - Jobs should pay living wages and be stable.
d�{-to5%
9. Increase the pronerty tax base.
10. Improve ine propery oalues of surrounding properry - This is best done through good urban
design, creation of a safe and secure site, and channeling truck and employee traf£ic as direcfly to
major arterial streets as possible, which is be;ng dor.e wiih the new Phalen Boulevard.
Public Improvements
11. Improce the aesthetics over the current condition - Some of the public investmenfs should be
channeled into improvements to the "public realm." Streets, sidewalks and public open spaces
must be designed and built with the site aesthetics in mind as well as being sensifive to the
neighborhaod design context.
GENERAL OVERAI,L DESIGN OSJECTNES
1. Take advantage of the physical characteristics of the azea (such as its compact size, intact
tradirional street network, prominent enhy points) to create a neighborhood with its own sense of
place and distinct identity.
2. Retain, as much as possible, the existing street network and block pattern as a frainework for new
building placement and open spaces (e.g. parks and greens), and design new buildings and/or
reuse exishng buildings to fit (e.g. prohibit street closizres to accommodate super-block
structures).
3. Incorporate Cnme Prevention Through Environmental Design (CPTED) and Design far Public
Safety Saint Paul principles to foster a safe and vibrant community.
4. Increase the amount of landscaping (trees, lawns, plantings, etc.) throughout.
Public Realm
5. Preserve significant views into and out of the neighborhood.
6. Build on the central public space/park "commons" at the heart of this area, "Swede Ho11ow
Pazk," that not only serves as a focal point but also is integrated into the larger network of trails
and neighborhood parks.
7. Design new buildings and reuse existing buildings to fit the existing urban pattem and
complement other neighborhood e�sting buildings.
Bufft Form
8. Design new buildings to frame all public spaces, including streets, the central "green" and any
other open spaces that may be created.
9. Design new buildings to be generally compatible in height, scale, massing materials,
configuration and fenesiration with the existing architectural significant buildings.
ay-�b5�t
10. Consider possible preservation of buildmgs of architectt:ral and tustoric merit that coL1d offer
variery in housin� or offce onpo*tunities.
11. Encou-.age the use of high-qualiry masonry exterior naterials, primarily brick, stone, stucco or a
mixture tnereof with small portions of siding incorporated.
12. Build new residential and mixed-use buildings close to the property 1ine, aLowing for a
comfortable transition from public to semi-public to semi-private to private space, and providing
an active face to the street.
Movement Networks
13. Provide sh'ong pedestrian links to adjacent areas and significant physical/natural features (e.g.
Swedz Hollow Park, Payne Avenue Main Street commercial, YMCA complex and 7ohnson
Achievement Plus School).
14. Integrate street design, land use and building form.
15. Design interior neighborhood and perimeter streets to encourage bicycle and pedestrian use.
Parking
16. Minimize the visual impacts of off-street parking.
17. Provide parldng below-ground in mixed-use buildings to serve building residents, einployees and
customers.
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Phalen Corridar Development Strategy Suminary
Amendment for Middle Section (Edgerton to Earl)
a�ld-la��
Addandum to The Comprehensive Plan for Saint Paul
Recommended by the Planning Commission - August 13, 2004
Adopted by the City Council -:�a�
This summary appends to the Comprehensive Plan the vision and strategies of the Phalen
Co�vzdor Development Strategy Middle Section (Edgerton to Earl). The Middle Secrion Plan
fuYtheY refines the Zand use concepts outlined in the Su�nrnary of the PhaZen Corridor
Development StYategy, which was adopted by the City Council on Apri14, 2001.
The Phalen Corridor Development Strategy
The obj ective of the Phalen Corridor Develop�ent StYategy is to enhance, stabilize and sustain
the economic, social and physical prosperity of Saint PaaPs East Side. Its focus is industrial
development and jobs. Its goal is to constnxct a new road, Phalen Boulevazd, in the rail corridor
that stretches from I-35E, near downtown, to the Lake Phalen azea in order to open up
approximately 100 acres of under-utilized land for industrial development.
Location
The area addressed in the Phalen Co�idor Development Strategy includes land within
approximately 1/4 mile either side of the future Phalen Boulevard, which runs along a rail
corridor between I-35E and 7ohnson Pazkway on Saint PauPs East Side. The Middle Sectzon
amendment encompasses the area between Edgerton and Earl streets (west to east) and,
generally, York and Bush streets (north to south).
Phalen Corridor Development Strategy Middle Section Summary Page 1
0�-►o5�t
Neighborhood Development Objectives
The PhaZen Corridor Development Strategy includes development obj ectives for neighborhoods
in the Corridor. These objectives are a broad sketch of how the overall goals of jobs, housing,
environmental protection and the creafion of neighborhood connections can be translated inta
specific development plans for the three Phalen Corridor neighborhoods.
As design and construction of Phalen Boulevazd proceeds from I-35E and Williams Hill eastwazd
to Johnson Parkway and Phalen Village, the City (PED and Port Authority) meets with the
affected neighborhoods to develop more specific ideas for development and redevelopment in the
area. These ideas will include industrial opportunities, commercial revitalization and housing
oppornuuties. The result of this plamiing process will be a preliminary master plan for that
neighborhood. These preluninary master plans wiil be refinements of the Phalen Corridor
Development Strategy and will be adopted by the Planning Commission and City Council as
addenda to the Comprehensive Plan.
Implementation of the master plans may be influenced by conditions unique to each site,
including soils and pollution, as weil as current market conditions. Therefore, implementation
will include discussions with neighborhood residents regarding specific site development issues.
Middle Section - Neighborhood Development Objectives
The middle section of the Phalen Corridor, from Edoerton to Eazl streets, is a linlc between the
neighborhoods that barder it. Strategies to strengthen this area include housing and recreation
opportunities that will unprove existing development as well as draw people from other areas of
Saint Pau1 and the larger Twin Cities region.
Specific Action Strategies and Implementation Steps
Payne Avenue/Phalen Boulevard Area
� Create new mixed use development at the intersection of Payne Avenue and the new
Phalen Boulevard. Tne mix will include new housing and commercial opportunities and
infill housing where appropriate.
� Provide for the rehabilitation and revitalizafion of existing comxnercial and residential
properties. Zoning for residential districts, where the predominate existing land use is
single family housing, is intended to preserve existing single family homes and, secondly,
to focus the redevelopment of new multi-family housing types. Both approaches are part
of the broad objective of the PhaZen Corridor DeveZopment Strategy to enhance, stabilize
and sustain the prosperity of the Phalen Corridor.
� The Saint Paul Housing and Redevelopment Authority (HRA) sent out a Request for
Qualifications (RFQ) in 3anuary 2003, to find a developer or group of developers who
will work to create specific projects in consultation with the City/fIlZA and the
community. The F3RA has been selected Skerman Associates Inc. as the developer for
the two areas north of the Payne Avenue bridge over Phalen Boulevard. No developer
was selected for the areas south of the bridge.
Phalen Comdor Development Strategy �ddle Secrion Summary Page 2
o4-cosq
Arcade/Phalen Bouievard Area
' Construct the access road frorn Phalen Boulevard to Arcade.
' Create a recreation and open space area on the site previously occupied by the brewery
�ain elevators. Possible uses include: tennis courts, middle school-sized soccer fieid,
unprogrammed open space, volleyball courts, hillside seating, handball courts and bocce
ball courts. Plans also include a playground north of John A. Johnson Achievement Plus
Elementary School, stormwater ponding, and a park building to be used as a trailhead and
an environmental classroom for the elementary school. The City wili assist in
ixnplementing the connections befween the reereation and open space area and the
playground area adjacent to the elementary school.
' Provide for a new Tier II skateboard park near and under the Arcade Street bridge.
' Support the applicable recommendations of the Arcade Starion Area Plan section of the
Riverview Transit Corridor Plan and the Arcade Small Area P1an.
Forest-Earl Area
' Suppozt the applicable recommendations of the Arcade Small Area Plan.
� Provide for the rehabilitation and revitalizafion of existing commercial and residential
properties. Zoning for residential districts, where the predominate existing land use is
single £amily housing, is intended to preserve existing single family homes and, secondly,
to focus the redevelopment of new multi-faxnily housing types. Both approaches are part
of the broad obj ective of the Phalen CorYidor Development Strategy to enhance, stabilize
and sustain the prosperity of the Phalen Conidar.
Priority Actions for City Participation
The following actions have been identified as prioriries of the community that require leadership
or significant participation by city government. Community groups and city departments should
implement the proj ects identified in this summary by applying for city resources in competitive
processes such as the Capital Improvement Budget (CLB) and Sales Tax Revitalization program
(STAR), and working though the regular operafing programs of relevant city departments.
1. Change the zoning of properiy in the area in accardance with Map B-Proposed Zoning
(Map A depicts existing zoning).
2. Work with public and private entities to unplement the land use plan shown in Map C-
Proposed Land Use. This includes projects resulting from the RFQ process.
3. Seek funding for the recreational uses and refine the development concept shown in Map
D-Phalen Corridor Recreational Development.
4. Support retention of 3M's presence in the azea, including a shift to a
researcl�lmanufachzring emphasis.
Phalen Corridor Development Strategy Middle Secrion Summary Page 3
O�f-�o5q
Planning CommissSon Findings
The Plannina Commission finds that the IYlidd.le Sect?on Arrend•rnent to the PhaZen Co
Developraent Strategy Summary is consistent with The Saint Paul Comprehenszve Pian and other
adopted City policizs. .
Planning Process
Organizations involved in the creation of this plan include: Planning Commission, District 4 and
District 5 Community Councils, the Phalen Corridor project, the East Side Neighborhood
Development Company, the Railroad Island Task Force, Friends of Swede Hollow, John A.
Johnson Achievement P1us Elementary School, East YiVICA, Payne-Arcade Business
Association, East Side A.rea Business Association, and ECON Weed and Seed. B1ock clubs in
the area were represented, as were individuai businesses. City and County officials also
participated.
Meetings of some of these groups began in May 2002. In September 2002, the Planning
Commission created the Middle Section Task Force to provide a framework for the discussions
and recommendations. The task force met biweekly during the fall to discuss altematives for the
Payne/Phalen azea. These altematives were included in the Request for Qualifications. Monthly
meetings foIlowed to review the development concept for the remainder of the area, including the
recreational uses planned in the Arcade area. Task force members and interested persons who
signed up on a mailing list were nofified of the meetings and participated in discussions.
Approximately 55 people participated in these meetings.
Phalen Corridor Development 5trategy Middle Secrion Summary Pa e 4
8
b�f t o59
Sponsor:
RESOLUTION NO. 04-OSl26-�
Resolution Authorizing the Execution of a
Development Agreement with Sherman Associates, Inc.
and Approval of Funding to carry out Development of
Phases 1a, 1b and 1d of the Payne-Pha(en Boulevard Mainstreet
Redevelopment Project in Payne-Phafen District 5
1 WFiEREAS, the Phalen Conidor Development Strategy was adopted by the City Council on
2 April 4, 2001 breaking down the corridor deveIopment into three sections as it moves from William's
3 Hill east to connect to the New Phalen Boulevard already constructed in Phalen Village; and
4
5 WHEREAS, with the construction of New Phalen Boulevard to Payne Avenue, the Phalen
6 Corridor Initiative, District 5 and neighborhood residents were concerned that a planning process needed
7 to get started to insure that deveIopment at Payne and New Phalen Boutevard would become major hubs
8 of development interest which shouid enhance and be an impetus to Payne Avenue and the residential
9 neighborhood overali; and
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�VHEREAS, the Payne-Phalen Middle Corridor Sechon (Edgerton to Earl) group was brought
together to estabiish goals and objectives to steer the development opportunities and has been recognized
by the Planning Commission to bring forward an Amendment for the Phalen Boulevard Middle Corridor
Section to be presented to the Planning Commission and on to the City Council for approval as part of
the Phalen Corridor Development Strategy; and
WHEREAS, the task force, including property owners in the proposed development areas, met
for several montns and on November 18, 2002 finahzed general standards/ob�echves for the area and
potential development altematives for the four comers at Payne and Phalen Boulevazd; and
WHBREAS, on December 11, 2002 HRA approved the issuance of a Request for Qualificafions
(RFQ) for the Payne/Phalen Boulevazd Middle Corridor Section to identify a potential qualified
party/deveYoper or parties/developers who are willing to work on deternuning feasible development
opportunities including design, consh and financing, etc, in addifion to considering the input
provided by the community; and
I
WHEREAS, on May 14, 2003 HRA approved Shennan Associates, Inc. as preferred to developer
to work with PED staff and the community to deternrine the potential for a feasible development plan;
and
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
"HRA") has the power to engage in development or redevelopment activities under Minnesota law and
the Authority is authorized to engage in acfivities relating to (a) housing projects and development, (b)
removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandazd
buildings and improvements into compliance with public standards, (d) disposirion of land for private
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redeveiopment, and (e) improving Yhe tax base and the financial stability of the community, and to
engage in the aforementioned acti� when these needs cannot be met through reliance solely upon
private initiative and which c2n also be undertaken in targeted neighborhoods; and
WHEREAS, a Memorandum of Understanding between HRA and the Developer was approced
by ±he HRA Board on 7anuary 28, 2004 which set forth the preliminary ae eements of the Authority and
the Developer with respect to the Project, and which provided a framework for a fmal development
aa eemznt to be submitted at a later date to the HRA Board of Commissioners for consideration and
approvai; and
VTKEREAS, the FiF2A wishes to proceed with Phases la, lb and ld of the Payne/Phalen
Mainstreet Redevelopment Project subject to execution of a Development Agreement and establishment
of the Payne-Phalen Tax Increment Financing Redevelopment Dish Plan and plans to budget up to
$33 million ($1.9 million of HOME funds and $1.4 million of TIF).
NOW THEREFORE BE IT RESOLVED BY TF3E Housing and Redevelopment Authority of
the City of Saint Paul, Minnesota, Board of Commissioners as follows:
The Board of Commissioners hereby authorizes the Executive Director, HRA Chairperson, tke
Assistant Secretary of HRA and the Director, Office of Financial Services (the "Authorized
Officers") to execute the Development Agreement with Sherman Associates, Inc. for Phases 1 a,
lb and ld of the Payne/Phalen Mainstreet Redevelopment Project. The approval hereby given to
the Development Agreement includes approval of such additional details therein as may be
necessary and appropriate and such modifications thereof, deletions therefrom and additions
thereto as may be necessary and appropriate and approved by the City Attomey, the appropriate
staff person or by the Authorized Officers; and said Authorized Officers or staff inembers are
hereby authorized to approve said changes on behalf of EIRA. The execution of the Development
Agreement by the Authorized Officers of HRA shall be conclusive evidence of the approval in
accordance with the terms hereof.
2. That the proposed Development Agreement describing the proposed transaction by and between
HRA and Sherman Associates, Inc. for Phases la, lb and ld in the Payne/Phalen Mainstreet
Redevelopment Project is satisfactory in form and complies with the reqmrements of state and
federal law and includes the total and also identifies future stages of Payne/Phalen Mainstreet
Redevelopment Project, that will need to be brought back to HRA for final approval.
That amendments and authority to approve, execute and deliver future amendments to the
Development Agreement in connection with the transactions contemplated by the overall
approval by the HRA on May 26, 2004 by Resolution 04-OS/26- for the Payne/Phalen Mainstreet
Redevelopment Project Phases 1a,lb and ld is hereby delegated to the Executive Director,
provided that such amendments do not materially adversely affect the interest of the F312A and
are acceptable in form and substance to the Saint Paui City Attomey, or other counsel retained by
the HRA to review such documents.
4. That the FIR?, authorized staff to create a Tax Increment Financing Plan on January 28, 2004,
and authorizes staff to continue to complete the final plan and bring back to HRA for final
budget approval.
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�. That � 1.9 million of HO.� funds is hereby approved for use as assistance in meeting the 20% of
HRA's affordability guidelines, meeting the gap in value created by redevzlopment costs and
construction costs for underground parking, st2fi will continue to evaluate the proj ects as they
moce Torward to closing to s7ucture wherever possible deier.ed loan; and snared participaiioa in
the ownership portion to have funds paid back where feasible.
6. Ti:at HRA supports the submission of applicarions for these projects to the Met Council Livable
Commuities Proa am in June, 2004 and to Minnesota Housing Finance Agency in July, 2004
requesting funding for these projects. Any awazd would help to reduce the amount of HRA
funds needed to be provided.
7. That HRA understands that Edgerton Family Lofts will be submitted to the HRA for Low Income
Tax Credits in 2004-05.
8. That HRA hereby approves the budget amendment to the Year 2004 HRA Budget attached to this
Resolution as Attachment A and made a part hereof.
(This part of page left blank)
�y-t o59
BUDGET AMENDMENT ATTACHMENT A
The HRA Board of Commissioners approve the budget amendment to the Year 2004 HRA budget.
HRA HOME FUND # 103
SPENDING PLAN Current Amended
Budget Change Budget
FINANCING PLAN
HOMEGrant-PriorYear 103-37001-3099-00000
103-37003-3099-00000
HOME Grant-Current Year 103-37001-3099-00000
(From June t, 04)
Totai Financing
SPENDING PLAN
HOME Projects-Unspecified 103-37001-0547-63523
Payne/Phalen Mainstreet
Redevelopment project 103-37001-0547-63607
CHDO Projects-Unspecified 103-37003-Q547-63523
PED Adminstration Fee 10337004-0299-63502
Total Spending
Netlncrease
Funds for 2004 New Grant will be available effective June 1, 2004.
14,000
145,859
2,500,000
2,659,859
2,514,000
145,859
2,659,859
e
39,044
39,044
(2,131, 760)
1,900, 000
17,500
253,304
39,044
39,044
14,000
145,859
2,539,044
2,698,903
382,240
1, 900,000
163,359
253,304
2,698,903
5/18/2004 103.x1w Prepared by PED Accounting