04-1065Councii File # � ` � � � J
Green 5heet # a� Uo�,�
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA �S
. D_ ,
Presented By
Refesed To
Committee: Date
RESOLUTIOl� OF THE CITY COi3NCIL OF THE CITY OF SAINT PAUL,
MINNESOTA APPROVING THE CREATION OF THE GREAT NORTHERN
BUSINESS CENTER - PHASE II TAX INCREMENT DISTRICT AND THE
HAZARDOUS SUBSTANCE SUBDISTRICT AND THE ADOPTION OF THE TAX
INCREMENT FINANCING PLAN
BE IT RESOLVED by the City Council (the "Council") of the City of Saint Paul, Minnesota (the "City"),
as follows:
Section 1. Recitals
1.01. On May 27, 1997 the Port Authority of the City of Saint Paul (the "Port Authority") established
the Great Northem Business Center Indush Developmern District in the City of Saint Paul. On October 26, 2004
the Port Authority approved the Taac Increment Financing Plan (the "Plan") establishing the Great Northem Business
Center — Phase II Tax Increment Financing Dishict and Hazazdous Substance Subdis4ict (the "Dishicf'). It has
been proposed that the City approve the District and the related Plan; all pursuant to and in conformiry with
applicable law, including Minnesota Statutes, Secrions 469.090 through 4691081 and 469.174 through 469.179, all
inclusive, as amended, all as reflected in the Plan, and presented for the Council's consideration.
1.02. The Council has invesrigated the facts relating to the Plan.
1.03. The Port Authorlty has performed all actions required by law to be performed prior to the adoption
and approval of the proposed Plan, including, but not limited to, notificafion of Ramsey County and School District
#625 having taxing jurisdiction over the property to be included in the Dishict, and the holding of a pubic hearing
upon published notice.
1.04. Certain written reports (the "Reports") relating to the Plan and to the activi5es contemplated
therein have heretofore been prepazed by Port Authority staff and submitted to the council and/or made a part of the
City files and proceedings on the Plan. The Reports include data, information and/or substantiarion constituting or
relating to (1) ffie "studies and analyses" on why the new District meets the so-called "but for" test and (2) the bases
for the othex findings and deternvnations made in tius resolution. The Council hereby confirms, ratifies and adopts
the Reports, which are hereby incotporated into and made as fully a part of this resolution to the same extent as if set
forth m full heiein.
1.05. A norice of the hearing on the Plan at this meeting was published as required by Minn. Stat.
§469.175, Subdivision 3, and pursuant to such notice a public hearing has been held on the crearion of the Dishict
and adoprion of the Plan.
2539139v1
D� �o�S
Secrion 2. Findinas For the Adonrion and Approval of the Plan.
2.01. The Council hereby finds tl�at the Plan, is intended and, in the judgment of this Council, the effect
of such acrions will be, to provide an impetus foz development in the public purpose and accomplish certain
objectives as specified in the Plan, which is heTeby incoipotated herein.
Section 3. Findines foi the Establishment of The Great Northem Business Center - Phase II Tax Increment
Financin� District
3.01. The Council hereby finds that the Dish is in the public interest and is a"redevelopment distdct"
mmder Minnesota Stamtes, Secrion 469174, subdivision 10.
3.02. The Council further finds that the proposed development would not occw solely through private
investment within the reasonably foreseeable future and that the increased mazket value on the site that could
reasonably be expected to occur without the use of tas increment financing would be less than the increase in the
mazket value esrimated to result from the proposed development after subtracting the present value of the projected
tax increments for the xnaxiimim duration of the District pernutted by the Plan, that the Plan conforms to the general
plan for the development or redevelopment of the Ciry as a whole; and that the Plan will afford ma�mum
opportnuity consistent with the sound needs of the City as a whole, for the development of the District by private
enterprise.
3.03. The Council fmthex fmds, declazes and deternvnes that the City made the above findings stated in
this Secrion and has set forth the reasons and supporting facts for each detemrination in writing, attached hereto as
Exhibit A.
Secrion 4. Hazardous Substance Subdistrict
4.01. The Port Authority will undertake the removal and remediation of the soil in the District.
Contaminants such as polynucleaz aromatic hydrocazbons, volatIle organic compounds, Lead and diesel range
organics will be addressed. These activiues will eliminate azeas of hazazdous substance in the designated hazardous
substances sites.
Secrion 5. Auoroval and Adontion of the Plan.
5.01. The Plan, as presented to the Council on tlus date, including without litnitation the findings and
statements of objectives contained therein, as hereby approved, ratified, established, and adopted and shall be placed
on file in the office of the Port Authoriry President.
5.02. The staff of the City, the City's advisoxs and legal counsel are authorized and duected to proceed
with the implementation of the Plan and to negotiate, drafr, prepare and present to this Council for its consideration
all fiuthez plans, tesolutions, documents and contiacts necessary for tlris purpose.
5.03. The Auditor of Ramsey County is requested to certify the original net taac capaciry of the Distdct,
as described in the Plan, and to cemfy in each yeaz thereafter the amount by which the original net tax capacity has
increased or decreased; and ffie City of Saint Paul is authorized and directed to forthwith transmit this Lequest to the
County Auditor in such form and content as the Auditor xnay specify, together with a list of all properties within the
Dishict, for which building permits have been issued during the 18 months immediately preceding the adoption of
this resolution.
The motion for the adoprion of the foregoing resolution was duly seconded by Council member
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
2539139v1
b �- �b�oSJ
Dated: November 3, 2004
Mayor
ATTEST:
City Administrator
(Seal)
2539139v1
oN - �o�S
eas a s sent
enanav
✓
ontgomery
f
osuom
�
une
�
ams
�
antry
�
e gen
f
� C7 Q
AdoptedbyCouncil: Date./V O�✓�'L� � �OC)'`{
Adoption Certified by Council Secretary
Approved by�y for S bmission
�
rl ` �Orv�.icds `�r D�lh iL c� / f^'2' �.![� ✓, Ze S:
�7�
�i�
3260�.v1
Form Approved by City Attorney
By: L" � � � _
a�- �o�s'
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sfieet �
Deparhnentloffice/council: Date Initiated;
P{�' �orcAuthoriry
�-0�j� Green Sheet NO: 3024020
Conmct Person & Phone: � DeoartmeM Sent To Person InitiaUDate
John W. Young 0 rtAuthori ._��
22¢5686 Assign 1 lanni & nomicDevelo �_
"mberl
Must Be on Councit Agenda by (Date): Number y � 4/
03NOV-04 For
Routing 3 'nan 'al Se 'ces
Order 4 oc' ce
Tota1 # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Resolurion adopting the crearion of the Great Northem Business Center Phase II Redevelopment Ta7c Increment Dishict and the
Hazardous Substance Subdistrict, and the adoption of the Tas Increment Finance Plan
iaanons: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Civi� Service Commission
Service Contraets Must Answer the
1. Has this person/firm ever worked under a contract for this departrnent?
Yes No
2. Has this pewon/firtn ever been a city emp�oyee?
Yes No
3. Does this personffirtn possess a skilt not normally possessed by any
current city employee?
Yes No
Expiain al� yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The Saint Paul Port Authorty has been pnrsning redevelopment of the Great Northern Business Center Phase R for serveral yeazs. The
Port Authority owns the 13 acre business center site and has hegun environmental remediation. It is now tixne to finaiize the TaY
Increment Finance Plan and District so that marketing and sale of the.site can begin in the spring of 2005
AdvanWpes If Approved:�
The Great Northern Business Center Phase II redevelopment will proceed as planned.
Disadvantapes if Approved:
None.
Disadvantapes If Not Approved:
The Great Northern Business Center Phase II will not be redeveloped and teh Thomas/Dale neighborhood will not receive the benefit of
over 200 jobs and new taac paying, development.
Trensaction:
FundinA Source:
Cost/Revenue Budgeted:
ActivrtV Number:
Fi nancial Information:
(Explain)
1900 Landmark Tcwers
345 SC. Petec Street
Saint Paul, Minnesota
55702-1667
October 19, 2004
QORj
J v 9
Q' a
d �1� s
r � o
2 b s 1�
Ms. Susan Kimberly, Director
Planning & Economic Development Department
1300 City Hall Annex
25 West Fourth Street
Saint Paul, Minnesota 55102
Tel: 651-224-5686
Fax 651-223-5798
Toll Free: 800-328-8417
wwwsppa.mm
o�- �0�5
RE: Great Northern Bnsiness Center Phase II Ta� Increment �nancing District and Plan
Deaz Ms. Kimberly:
We submit for your review and referral to the office of the Mayor, City Council, and City
Attorney's office, Great Northern Bnsiness Center Phase II Tax Tncrement Financing District and
Plan.
In addition to the staff inemorandum, we are attaching a dra$ copy of the proposed City Council
Resolution and a copy of the ta� increment financing plan that were approved by the Port
Authority's Board on September 28, 2004. A City Council public hearing action is requested at
its meeting on November 3, 2004.
Your expeditious handling of this matter will be appreciated.
Sincerely,
����.,_
Kenneth R.Johnson
President
(rrd
Attachment
cc: Mayor Randy Kelly
Lorrie 7. I.ouder, Saint Paul Port Authority
John W. Young, Saint Paul Port Authority
32575.v1
D�(� la�S
EXE3IBTT A
RESOLUTION #
The reasons and facts supporting the findings for the adoption of the Great Northem
Business Center Phase II Redevelopment Tas Increment Financing District (the "District") and
the hazazdous substance subdistrict (the "HSS") therein, are as follows:
l. Finding that the District is a"redevelopment district. "
The property comprising the District has been owned by the Burlington Northern Santa
Fe Railroad (`BNSF") or its predecessor railroad companies since the late 1800's. While
portions of the property have been leased to various lessees, those leases have terminated
and the bulk of the property has consistently been either vacant or used for railroad
purposes, including railroad storage and railroad related activities. At present, the
properiy comprising the District is vacant, unused, undenxsed, inappropriately used or
anfrequently used railroads, rail storage facilities or excessive or vacated railroad rights-
of-way occupied by concrete and grauel surface parlang, with some building footings still
in place. This is under-utilization of the area, and results in a stagnate and only
marginally producfive use of the property.
2. Finding that the proposed deveZopment, in the opinion of the Port Authority, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and that the increased market value of the site that could reasonably
be expected to occur without the use of tax increment fnancing woisld be less than the
increase in the market value estimated to result fr^om the proposed development after
subtracting the present value of the projected tax increments for the marimum duration of
the district permitted by the plan.
Private development of the District has not been possible for a variety of reason,
including ownership by a railroad, blighted property, unstable soil conditions and high
pollution remediation costs. As a result, this project is feasible only through assistance,
in part, from tax increment financing.
3. Finding that the Great Northern Business Center Phase II Redevelopment Tax Increment
Financing District conforms to the general plan for the development or redevelopment of
the munzcipality as a whole.
The Great Northern Business Center Phase II Financing Plan has been reviewed by the
City and has been found to conform to the general development and redevelopment plan
of the City.
4. Finding that the establishment of the Great Northern Business Center Phase II
Redevetopment Tczx Increment Financing Districf for will ttfford maximum opportunity,
2539139v1 A-1
o�-io�s
consistent with the sound needs of the City as a whole, for the development or
redevelopment of the project by private enterprise.
The District will provide approximately 13 net developable aeres, or 566 square feet of
1and. It is anticipated that the development will result in manufacturing and indusirial space, but
the Plan does not preclude the undertaking of other qualified development or redevelopment
activities. Based upon the Port Authority's experience in other business centers, it is expected
that approximately 1.7 jobs will be created per 1,000 square feet of construction.
2539139vi A_2
0'f ole5
� -�..
SAINT PAUL
PORT AUTHORITY
MEMORANDUM
TO:
FROM:
BOARD OF COMMiSSIONERS
(Regular Meeting of September 28, 2004)
Jahn W. Yc
Lorrie J. Lo
Kenneth R.
DATE:
September 22, 20d4
SUBJECT': PRELIMINARY APPROVAL OF GREAT NORTHERN BUSINESS CENTER PHASE II TAX
INCREMENT FINANCE PLAN AND DISTRICT
Resolution No. d092
Action Reauested:
We request the Board approve the following. First, preliminary approval of the Great Northern
Business Center Phase II Tax Increment Financing District and Plan. Second, authorization to set a
public hearing to approve the District and Plan for the October 26, 2004 Port Authority Board
meeting. Third, approval of transmittal of the Great Northern Business Center Phase II 7ax
Increment Financing Plan to the City Council with request for the City Council to set a public hearing.
Finally, to authorize the Port Authority io transmit the Tax fncrement Financing Pfan for review and
comment to the Schooi District and Ramsey County.
Public Purpose:
Redevelopment of the Great Northem Business Center Phase II wil( create a minimum of 200 jobs
using the Port Authority's one job per 1,000 square feet of building space criteria. This
redevelopment will compliment the �reat Northern Business Center Phase i and will provide jobs in
the ThomaslDale neighborhood where new job opportunities are needed. The Port Authority is also
structuring workforce development recruitmenf and training system to help neighborhood residents
receive jobs at the new business center. The business center will provide employment opportunities
for Saint Pauf residents, especiaily ThomaslDale residents, and generalfy wi11 eliminate bfight and
return vacant unused fand to productive use.
Susiness Subsidv:
N!A
Backaround:
In May 1997, the Port Authority Board of Commissioners created an industrial development district
covering the Great Northem Business Center Phase I and Phase II. In that same year, the Port
Authority, City of Saint Pauf, and neighborhood organizations completed a vision for industrial
development tor both business center sites. The Great Northem Business Center Phase I is now
sofd out. One buiiding is compfete, another under consfruction, two more schedufed to start
construction this faN, antl a fifth business to start construction in the spring of 2005. Redevelapment
of the Great Northem Susiness Center Phase II wi11 compliment the activity at Phase l.
32307
� #32307 v1 - tnt Crd. Memo ��� [,
V
We have purchased 13 acres of the 37 acre Dale Street Shops parcel. This parcel is generally
bounded by Dale Street on the West, Minnehaha Avenue on the South, and Arundel Street on the
East. The site is 300 feet deep from Minnehaha Avenue and will accommodate a total of 200,000
, square feet of new building construction. This redevelopment will likely be phased as we have only
, enough contamination cleanup grant funding to remediate approximately 10 acres of the site. The
remaining three acres wili be remediated once funding is acquired from the Metropotitan Council and
Minnesota State Department of Employment and Economic Security. The first phase of remediation
work is set to begin October 1, and is the subject of a conVact award credit memo before the Board
this month.
Tax incremenf financing is always a vital piece of our redevelopment projects. New taxes from fhe
developmenf will repay debt that is used to pay project costs. New taYes from redevelopmenf of tf�is
site are expected to be approximately $250,000 per year. We have had several interested users in
the parcel but no firm commitments. it is now fime that we begin the approva! process of our Tax
Increment Finance Plan and District so that we may proceed in a fimefy fashion wifh the
redevelopment.
Recommendation:
We recommend preliminary approvai af the following items. Firsf, preliminary approvai of the Great
Norfhern Business Cenfer Phase II Tax Incremenf Financing District and Pian. Second,
authorization fo set a pubiic hearing to approve the District and Plan for the October 26, 2004 Port
Authorify Board meeting. 'fhird, approval of transmittal of the Great NoRhem Business Center
Phase II Tax Increment Financing Plan to the City Councif with request for the City Conncil to setup
a public hearing. Finaliy, ta autharize the Port Authority to transmit the Tax Increment Financing
Pian for review and comment to the school district and Ramsey County.
JWY/rrd
32307.2.
o�-l0�5
Resolution No. 4092'
RESOLUTION OF THE
PORT AUTHORITY OF TF� CITY OF SAINT PAUL
�VHEREAS, in May, 1997, the Boazd of Commissioners of the Port Authority of the City
of Saint Paul adopted its Resolution No. 3629 creating the Great Northern Business Center
Industriai Development District, and in eazly 2000, the Boazd of Commissioners and the City
Council of the City of Saint Paul adopted the Great Northem Business Center — Phase I Tas
Increment District and Hazardous Substance Subdistrict and related tax increment financing plan
for the northem area of the industrial development district; and
WHEREAS, in an effort to encourage the development and redevelopment ofproperiy in
the industrial development district, it bas been proposed that the Port Authority establish Crreat
Nozthem Business Center Phase II Redevelopment Tas Increment Financang District (the
"DistricY') and Hazardous Substance Subdistrict (the "HSS"), and that, in connection with the
creation thereto, a11 pursuant to and in accordance with Minnesota Statutes, Sections 469.048
through 469.068, inclusive; and Minnesota Statutes, Sections 469.174 through 469.179,
inclusive; and
WHEREAS, the Port Authority has investigated the facts and has caused to be prepared a
proposed tax increment financing plan (the "Plan") far the Dishict and the HSS; and
WHEREAS, in order to further the approval of the Plan, the Port Authority wishes to,
among other things, provide for a public hearing on the PIan and to authorize the submission of
the Plan by the Port Authority to Ramsey County and the Saint Paul School District as required
by the statutes; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port
Authority of the City of Saint Paul as follows:
i. Port Authority management is hereby directed to cause a notice of public hearing
to be published to provide for a public hearing at the Saint Paul City Council, to consider the
establishment of the District, and to cause notice of said public hearing to be given as required by
law.
2. Port Authority management is hereby authorized to continue discussions with City
staff to finalize the Pian and other issues related to the creation of the District, and to transmit
copies of the Pian as finalized to the City Plamiing Commission and request the City Plamiing
Cornmission's written opinion indicating whether the proposed adoption of the Plan is in
accordance with the Comprehensive Plan of the City prior to the date of the public hearing to he
called by the Board.
3. Port Authority management is hereby further authorized to (a) submit a copy of
the Plan to the Board for its approval, (b) transmit the Pian to the School District i which the
2szsaso�i
D4-loLS
District is located and to the Covnty Board to Comrnissioners not later tkan 30 days priar to the
publicarion of public hearing nofice, and (cj provide any other notices require@ by stalute.
Adopted: September 28, 2004
PORT AUTHORITY OF TE� CITY
OF SAINT PATJL
By
Its Chair
ATTEST:
Its Secretary
zszsasm�
a�I�-ID�S
LS&D I?raft. 10l18f04
TAX L�TCREMENT FINANCING PI,�N
for the establishment of the
GREAT NORTHERN BUSINESS CENTER, PHASE II
REDEVELOPMENT TAX INCREMENT FTNANCING DISTRICT
AND
HAZARDOUS SUBSTANCE SUEDISTRICT
PORT AUTHORITY
of the
CTTY OF SAINT PAUL
RAMSEY COIJNTY
STATE OF MINNESOTA
Approved by the City Council:
Adopted by the Port Authority:
zsss9a2
D�-ro6 5
TABLE OF CONTENTS
(for reference purposes only)
Page
Section Introduction ...................................................................................................
A. Background ....................................................................................
B. Creation of Redevelopment Tas Increment Dishict and Hazardous
Substance Subdistrict; Stahxtory Authority ......................................
C. Need and Public Purpose ................................................................
...............1
...............I
................1
................2
Secrion II. Obj ectives of the Port Authority far the Improvements in the District .............................2
A. Provide job opporhxnities for Saint Paul residents ..............................................2
B. To redevelop underused, inappropriately used, or infrequently
used property .................................................................................................3
C. Develop ttfe Great Northem Business Center Phase II as a
commercial / industrial business center ...........................................................3
D. Eapaud the industriai ta�c base of the City of Saint Paui . ...................................3
E. Hazardous Substance Remediation . ..................................................................3
Section III. Classification of the District ...........................................................................................4
Section N. Description of the Development Program for the Great Northem Business
Center .....................................................................................................................4
A. Site Acquisition, Assembly, and Relocation . .....................................................4
$. Demolition .........................................................................................................5
C. Remediate polluted soils ....................................................................................5
D. Soil Correcrion to support building foundations .................................................5
E. Undertake and install site ixnprovements and utifities .........................................5
F. Contracts for legal and professional services essenkal to the
redevelopment activities . ................................................................
G. Incur costs and expenses in connection with the marketing of the
redeveloped business center ............................................................
H. Tncur costs and expenses in coanection witt� The financing of the
redeveloped business center . ........................................................,
I. Contingency for additional costs . ..................................................
..5
..5
..............6
..............6
Section V. Descrip6on of Contracts Entered Into at the Time of Prepazarion of the Plan .............6
A . Site Assembly ...................................................................................................6
B . Demolition ........................................................................................................6
C . Site Remediation ...............................................................................................6
D. Land Sales .........................................................................................................6
Section VL Description of Other Types of Development Activities Which Can Reasonably
be Expected to Take Place Within the Dist�ict . ...................................................
Section VII. Estimated Cost of the Project and Description of the District . ..................
2538922
1
......7
........7
ay-rd65
A. Cost of the project, including administrative expenses . ...................................7
B. Amount ofindebtedness tn be incuned ...............................°----....._...._........_..._7
C. Sources of revenue to finance or otherwise pay public costs . ..........................7
D. Most Recent Net Tax Capacity of Tasable Real Property Within
the Taac Increment Financing District .................................................................9
E. Estimated Captured Net Tas Capacity of the Tax Increment
Financing District at Compietion . ......................................................................9
F. The ozi�nal taY capacity and captured taY capacity of the HSS . .......... ..............4
G. Duration of the TaY Increment Financing DistricY s E�stence .........................10
Section VIII. Alternate Estiruates of the Impact of the Taz Increment Financing on the Net
Tax Capacities of All Tasing Jurisdictions ...................................................................10
Section IX. Studies and Analysis Used to Determine Need for Tax Increment Financing . ............1 I
Secrion X. Identification of All Parcels to be Included in the District ............................................11
Secrion XI. Hazardous Substance Subdistrict .................................................................................11
Section XII. District Admnustration and Annual Disclosure . .........................................................12
Section XILi. Modifications to District ...........................................................................................12
Section XIV. Administrative Expenses .....................
Section XV. Necessary Improvements in the District ..
Section XVI. Use of Taac Increment
.....................................................13
.....................................................13
Section XVII. Notification of Prior Planned Improvements ..................................
Section XVIII. Excess Tas Increments ..................................................................
...14
..............14
14
Section XIXX. Fiscal Disparities ......................................................................................................14
Section XX. Requirements for Agreements with Developers ........................................................14
Section XXI. Development and Job Creation .................................................................................15
Appendix A Property Identification Numbers of Parcels Within the District
Appendix B Property Identificafion Numbers of Parcels Within the HSS
Appendix C Ramsey County Estimated Market Values
Appendix D Map of District
Appendix E Estirnated Sources and Uses
2538922 11
�-i �obs
PORT AUTHORITY OF THE CITY OF SAINT PAUL
TAX INCREMENT FINANCING PLAN FOR THE
GREAT NORTHERN BUSINESS CENTER, PAASE II REDEVELOPMENT
TAX INCREMENT FINAPTCING DISTRTCT AND
: ; . . � • �Y � � -_ : � _ ��Il
Section I. Introduction
A. Background
The Port Authority has acquired approxiznately 13 acres of a 37 acre parcel from the
Burlington Northern and Santa Fe Railway Company (BNSF) in the Thomas Date
neighborhood of Saint Paul. The BNSF has retained ownership of the r�*�+arnmg 24 acres.
The 13 acre Port Authority owned site is generally located Sonth of the BNSF rail line, and
is bounded by Dale Street to the west, Anuidel S�eet to the east, Mimiehaha Avenue to
south. The northem boundary is 300 feet from the back of the Miiuiehaha Avenue northerly
curb. Pmperty records indicate that railroad repair and storage facilities occupied much of
the west portion of the site from the late 1800s untii the 1980s. The eastern portion of the
site was used by lessees during much of the I900s. Currently, the property has been used for
storage of railroad containers or was vacant. The site has been under the ownersiup of the
BNSF or their predacessor firm{s) since the late 1800s.
In May, 1997, the Board of Commissioners of Port Authority of the City o£ Saint
Paul ("the Port Authority"� adopted its Resolution No. 3629 creating the Great Northem
Business Center Industdat Development District. In earIy 2000 flie Boazd of Commissioners
of the Port Authority and the City Councii of the City of Saint Pau1 adopted the Great
Northem Business Center — Phase I Ta�c Increment District and Hazardous Substance
Subdistrict and related Tas Increment Financing Plan for the northern azea of the Indushial
Development District, which is generally located north of the BNSF rail line. The goal in
creating the indushiai development dishict and related tax increinent districts was identified
as being to create the maximum tax base and job creation in the azea
B. Creation of Redevelopment Tax Increment District and Hazardous SubsYance
Subdistrict; Statutory Authority.
This tax increment plan relates to the crearion, under Minnesota Statutes Section
469.174, Subd. 10, of the Great Northem Business Center Redevelopment, Phase II Tu�
Increment District (the "DistricP') consisting of the approximately 13 acre site purchased by
the Port Authority from BNSF, and the creation within the District of a Hazatdous
Substance Subdislrict (the "HSS") pursuant to Section 469.175, Subd 7.
2538922
64�-to�
C. Need and Publie Purpose
The Thomas Dale and North End neighborhoods of Saint Paul have seen a reduction
in living wage manufacturing jobs since fhe 1980's. The Great Northem Business Center —
Phase II will provide significant land for business expansion. The City's tax base will be
increased by the conslniction of appro�mately 200,000 square feet of commercial or
industrial facilities on appro�mately 566,000 square feet of land. Job creation potenrial will
be maximized with over 200 jobs being provided on site. These jobs will be available to
Saint Paul residents. Further, the Port Authority will link job seekers with employers by
providing customized job training services.
Private development of the District has not been possible for a variety of reasons.
Tlaese reasons include ownership by a railroad, blighted properiy, unstable soil condirions
and high pollution remediation costs. All of these conditions haue resulted in a lack of
private investment in tYris azea. As a result, the property has not provided adequate
employment opporlunities and has not contributed to the tax base and general economy of
the City, the school district, the Counry, and the State to its full potential. The anricipated
clean up of the parcels to be included in the Dish which will be made possible by the
creation and development of the Dishict and the HSS, will provide approximately 566,000
square feet of land area to businesses to expand in or relocate to the City.
It is necessary that the Port Authority exercise its port authority powers under state
law to develop, implement, and finance a prograxn designed to encourage, ensure and
facilitate the redevelopment of the property.
The Dastrict is comprised of land use activities that are incompatible with the
surrounding area. In 1997, the North End and Thomas Dale neighborhood's completed the
Great Northem Corridor Vision Plan. This vision clearly describes the neighborhoods'
desire for industrial redevelopment at the Great Northern Business Center in order to create
new jobs for neighborhood residents. The vision also calls for the use of a system to recruit
and train unemployed and underemployed neighborhood residents for the new jobs. A
sixnilar system has been successful in recruiting and training residenYs for new jobs at the
Port Authority's recent projects: Williams Hill, Arlington/Jackson, Crosby Lake, Great
Northem Business Center — Phase I, and Energy Lane business centers.
Section II. Obiectives of the Port Authoritv for the Imnrovements in the District
A. Provide job opportunities for Saint Paul residents.
The Port Authority's goal is to create one job per 1,000 square feet of consiruction.
Because it is the Port Authority's stated goal, the Port Authority is estimating that at least
200 new jobs will be created by the construction of an approximately 200,000 square foot
business center, and this number has been used for the Port Authority's projections.
Based upon the Port Authority's experience at the Ctosby Lake, Arlington / Jackson,
Williams Hill, Great Northern Phase I, and Energy Lane Business Centers, however,
2538922 Z
D�-/o� 5"
approximately 1:7 jobs were created per 2,000 square feet of coastrucrion. This job creation
history exceeds the Part Authority goal of one job per t,OdO square feet.
B. To redevelop underused, inappropriateIy used, or infrequenfly used
property.
The District has been owned by BNSF or its predecessor railroad companies since
the late 1800's, and has most recently been used for raikoad storage or kept vacant_ The
District is presently occupied by concrete and gravel surFace parking, with some building
footings still ia place. Tlus is an under-utilization o£ the area, and results in a stagnant
and only margiaally productive use of the property.
C. Develop the Great Northern Business Center Phase II as a commercial /
industrial business center.
The District will provide appro�mately 13 net developable acres or 566,000 square
feet of land. WYrile it is anficipated that the development will result in manufachiruig and
indushial space, the Redevelopment Plan and Tlus Taac Increment Financing Plan do not
preclude the uudertaldng of other qualified developmetzt or redevelopment activities. There
will be good access to arzd &om the property from West Minnehal�a Avenue immediately
east of Dale Street. The District area is cnntiutly zoned I-1. The District is located on two
major bus lines on DaIe Sheet and Minnehaha Avenue, as well as being within several
blocks of at leasf two additionai lines, alI of wIuch enhances access to jobs for Saint Paul
residents. Conshv.ction values aze estimated at $50.00 per square foot based upon recent
business center build-out experience.
D. Expand the indnstrial tax base of the City of Saint Panl.
It is e�cpected that the taacable market value of parcels in the District will increase by
approximately $9 million once the Great Northem Business Center — Phase II is placed in
service. This value will come from private development over the life of the Tas Increment
Distdct and the Redeveiopment project of approximately 200,004 square feet of
commercial/industrial deveIopment with an average consiruction value of $50.00 per sguaze
foot. The PorE Authority will require 35% coverage of the land bp buildings. The tasable
value of new facilities is assumed to be 90% of their construction cost.
E. Hazardous Substance Remediation.
Pursuant to its MPCA approved Response Action Plan, the Port Authority wzll
remediate the land in the District at a cost of appro�tely $2.6 million, wluch exceeds the
estunated market value of $2.0 million for similarly sized tracis of unpoIluted land. The
Port Authority's MPCA approved Response Action PIan pmvides for the remediation of
contauunated soil, which includes polynucleaz azomatic hydrocarbons (PAHs), volatile
organic compounds {VOCs), Lead, and diesel range organics (DROs). These activities will
eliminate azeas ofhazardous substances in the designated bazardous substance sites.
2538922 3
p'�-I obS
Section III. Classification of the District
The Port Authority and the City of Saint Paul have found that the Dishict is entitled to be
qualified as a redevelopment district puisuant to Minnesota Statutes, Section 469.174, Subd
10 because it consists of vacanf, unused, underused, inappropriately used, or infrequently
used rail yards, rail storage facilities, or excessive or vacated rail road right-of-way.
In addition, the District meets the requirements of a redevelopment district pursuant to
Mnmesota Statutes, Section 469.176, Subd. 4, because at least 90% of the revenues derived
from tas increments from the District will be used to finance the cost of correcting
conditions that allowed designarion of the District as a redevelopment dishict under 5ection
469.174, Subd. 10 described above. These costs consist primarily of acquasition,
demolition, environxnental cleanup, grading, and public innprovement. The allocated
administrative costs may also be included in the qualifying costs.
The Port Authority and the City further find that it is appropriate to create an HSS within the
District pursuant to Mimiesota Statutes, Section 469.175, Subdivision 7 because:
a. Due to the presence of significant environmental contaznination, and the
significant costs to implement the Port Authozity's MPCA approved Response
Action Plan, redevelopment of the District would not reasonably be expected to
occur solely through private investment or the tas increment othenvise available
from the District;
b. The HSS is not larger than, and the period of time which increments are elected to
be received is not longer than, that which is necessary to pay the additional and
significant costs of the environmental remediation needed in the District.
Section IV. Description of the Development Prosram for the Great Northern Business Center
Site.
The redevelopment plan consists of the development of a business center with up to three
buildable sites in the District. In antieipation of this ultisnate use, the Port Authority has
been assembling the site and will manage site clearance, poilution remediarion, and
nlfrasiructure installation. In addition, the Port Authority will undertake to provide
financing and admniistrative functions, all as described in more detail below and in the
Sources and Uses budget attached as Addendum E. Estimated costs associated with this
Tax Increment Financing Disffict are subj ect to change and may be reallocated between line
items provided that the cost of all activities to be financed by the taY increment will not
exceed, without formal modification, the budget for the tax increments set forth on
Appendix E.
A. Site Acquisition, Assembly, and Relocation.
Acquisifion of the District land cost $1 xnillion. This cost does not include
appraisals, legal fees or closing costs.
2538922 4
oy-�o�5'
B. Demolition.
There will be no cost for building demolition, but the cost of demolishing old
building foundations is included in the soil remediation budget.
C. Remediate polluted soils.
Remediarion and engineering oversight costs aze estimated to total approximately
$3.1 million. These costs include $500,000 of completed environmental studies and
$2.6 million of estimated cleanup costs, which may change. The cost will include
line items for field testing, soil remediation, MPCA oversight, and professional
services.
D. Soil Conecrion to support bnilding fonndations.
Soft and uncompacted soil requiras that soil correction methods like geo-piers or
piles will be necessary to support building foundations. These costs are estimated at
$1.2 xnillion.
E. Undertake and install site improvements and utilities.
Site impmvements will include engineeriug, site grading, gas and electric utilities,
and ]andscaping. Total site impmvement costs aze anticipated to equal
approximately $900,000.
F. Contracts for legat and professional services essential to the redevelopment
activities.
Professional seivices will include land surveys and tifle work, real estate, legal, civil
engineering, geotechnical engineering, appraisals, traffic engineering and site
design. The total cost for professional services, other than bond issuance costs, is
estimated at $1.0 milIion. Half of these costs ($500,000) have been incurred at the
time of this Plan, and the remainder ($500,000) will be incurred during
implexnentation of the business center.
G. Incur costs and expenses in connection with the marketing of the redeveloped
business center.
In anticipation of approval of the Tazt Increment Finance Plan, business center
sites wil2 be marketed for private use in the fa11 of 2004. New building
construction witl begin in the spring of 2005 and continue through suuuuer of
2007. MarkeYing costs, inclu@ing advertising, promotional events and materials,
and broker commissions aze earpected to be $100,000.
2538922
Dy-��5
H. Incur costs and espenses in connection with the f5nancing of the redeveloped
busiuess center.
The Port Authority shall, by early in fhe yeaz 2005, issue tax increment bonds in the
approximate principal amount of $21 million to finance approximately $1,400,000
of project costs. Bond issuance costs plus other financing related costs, including
construction period interest, and unden� discount, are anticipated to total
approxunately $700,000. In addition, it is anticipated that the project will obtain a
�1,OQ0,000 interest bearing loan from the Port Authority from its EPA revolving
loan fund with annual payments and a balloon / refinancing in year ten.
I. Contingency for additional costs.
Redevelopment of contaminated indushial land is complicated and there aze often
addiuonal costs or cost overruus. A$500,000 contingency is included in the
redevelopment budget for this purpose.
Section V. Descrintion of Contracts Entered Into at the Time of Prenara6on of the Plan
The following, as required by Section 469.175, Subd. 1(3), is a list of development activities
that aze proposed to take place within the District for which contracts have been entered into
at the time of the preparation of this plan, including the names of the parties to the contract,
the activity govemed by the contract, the cost stated in the contract, and the expected date of
completion of that activity.
A. Site Assembly.
The Port Authority has previously acquired the parcel at a cost of $1 A miilion.
B. Demolition.
There is some demolirion of oid building foundations which will be done during
site cleanup and remediation, and included as part of the site cleanup and
remediation contract described below.
C. Site Remediation.
The Port Authority has entered into a contract for demolition and site cleanup and
remediafion with Glen Rehbein Excavating. This work consists of demolition,
soil remediation and site grading, which will be completed by 7une, 2005. The
cost stated in the contract is $1,568,000 based upon estimated quantities.
However, due to the severity of the contamination at this site, actual quantities
may result in the costs to remediate contaminated soil reaching $2.6 million.
D. Land Sales.
There were no land sales at the date of this plan.
2538922 6
D�t-tb�,
Section VI. Descriutian of Other Twes of Development Activities Which Can Reasonablv be
Eavected to Take Place Within the District
It is expected that the end-users of the Great Northem Business Center — Phase II will
consist of industria�/commercial businesses. These activities are anticipated to provide space
that leads to the creaTion of living wage jobs. T7us District will generate new constniction
value of approacimately $10 million based upon appro�cimately 200,000 square feet with a
construction cost of $50.00 per squaze foot, assuining a 35% building to land coverage ratio
applied to 13 acres. For purposes of its proj ections, the Port Authority bas assumed that 200
jobs wiIl be at the site based upon its policy of creating one job per I,000 square feef of
construction. As described in Part II.A., the Port Authority's experience would sapport a
conclzision tYtat approa�mately 1.7 jobs per 1,000 square feet of building space will be
created.
Section VII. Estimated Cost of the Proiect and Description of the District
The following, as required by Section 469.175, Subd. 1(5), are estimates of the (i) cost of
the project, including administration expenses; (ii) amount of bonded indebtedness to be
incurred; (iu) sources of revenue to finance or otherwise pay public costs; (iv) the most
recent net t� capacity of ta�cable real property within the taz� increment $nancing district;
(v) the estimated captured net tas capacity of the tas increment financing district at
completion; (vi} the original taY capacity and captured tas capacity of the $SS and (vii}
the durafion of the DislricYs and the HSS's existence.
A. Cost of the project, including administrative expenses.
The total cost of the proj ect, excluding debt service is estixnated at $7.8 million plus
administrative charges in an amount up to 10% of the tax increment expenditures.
B. Amonnt of indebtedness to be iacurred.
The Port Authority intends to issue bonds to pzovide $2.1 xnillion in project
funding in 2005 ($1.4 million for project costs and $700,000 for capitalized
interest and other financing costs}. This debt will be repaid from tax increments. It
is also anticipated fhat the project will obtain a$1 million dollar interest bearing
loan from the Port Authority EPA revolving loan fund whick loan wi11 require a
balloon payment or refinancing at the end of the tenth year; this loan will be
repaid from taY increments.
C. Sources of revenue to fmance or otherwise pay public costs.
The following aze the likely sources for funding the total project, including the tazc
increments, which will be pledged ixutially to the bonded iudebtedness:
2538922 '�
0��0�5"
T� r�����
Tax increments, net of up to 10% for administrative expenses, are anticipated
to equal $210,600 ammually (Total of $234,000 less 10% ad�ninistrative costs
of $23,400). These t� increments will be first pledged to the payment of
debt service on the �2.1 million tas increment bonds, and then to pay
principal and interest on the EPA revolving loan, and any loan made to
refinance the EPA loan at the end of the tenth year. Tas increments
remaining after the payment of the bonds and EPA loan will be pledged to
repay the Port Authority for the $1,025,000 of funds contributed to tl�is
project, as well as additional funds as described in clause iii and v below.
It is further anticipated that tas increments in excess of those needed to pay
adtninistrative costs and the debt service on the bonds and loan will either be
used to support additional indebtedness oz to pay or reimburse the eligible
costs incurred in the redevelopment of the District, to the extent not paid
from the $2.1 million bond issue, the EPA loan or the Part Authority's
contributed funds.
ii. Inveshnent income
None expected. It is expected that all funds will be expended as received.
iii. Other Sources
It is anticipated that BNSF ra3lroad will provide $1,100,000 in cleanup
funds. In addition, it is anticipated that the Port Authority will provide
$1,025,000 in initial funding that will be repaid from taY increment after all
other related financing has been repaid. If othez funding sources are not
identified, the Port Authority may also fund additional amounts curtendy
estimated at �703,000.
iv. Grants
It is azrticipated that grants will inciude $1,460,000 firom the Minnesota
Department of Employment and Economic Development, $700,000 from the
Metropolitan Council, $400,000 from the US Environmental Protecfion
Agency, and $112,000 from the City of St Pau1 STAR funds.
v. Ga�Funding
Presently, the revenue sources are not anticipated to be sufficient to fund the
costs incurred in the redevelopment of the District, and if there is a delay in
issuing bonds or costs exceed current estimates, the gap in funding will
increase. It is anticipated that all costs will be fully paad either from the
pmceeds of the proposed bond issue, from an additional bond issue, or from
2i38922
� to�s
direct paymeat or reunbursement from ta:t increments. Complete funding
sources will be identified prior to full implementation of the Proj ect.
D. Most Recent Net Tax Capacity of Tagabie Real Property Within the Tas
Increment Financing District
The Port Authority closed on the purchase of the 13 acre site comprising the District
in January 2004. As of the daYe of this plan, Ramsey County has not yet assigned
values for the parcels in Yhe District or the 24 acres retained by BNSF. The net taY
capacity for the Dishict has been estimated for purposes of this plan and will be
included at its actual value before request for certification of the Dishict.
The District is 35% of the ori�nal 37 acre site. The total site has an Estimated
Mazket Value of $3.5 million according to Raxnsey County records for properry
taxes payable 2004. Therefore, the value of the Distxict is estunated at 35% of tiie
total is $1.2 mi1$on. The original tax capacily and Tax Rate are calculated in
accordance with Minnesota Statuies, Section 469.I74, Subd 7 and Section
469.177, Subrl 1.
As a result of these calculations, the estimated market value of the District is $1.2
xnillion. The net taY capacity of the Dish is $24,000, which is calculated by
mukiplying the comxnerciaUindustriaT tas rate of 2% by the esfimated mazket value
of $ I.2 million. The original tax capacity rmd Tax Rate are calculated ir�
accordance with Minxesota Statutes, Section 469.I74, Subd 7 and Section
469.197, SubrL 1.
E. Estimated Captured Net Tag Capacity of the T� Increment �inancing District
at Completion.
The District wiA haue thirteen acres of developable land at a 35% building to land
ratio for a m;nimum of approxixnately 200,000 square feet of new buildings. The
eicpected aggregate cost of the aew constcuction is $10 million. Approximate
County assessed value is likely Yo be 90% of construction value or $9.0 million.
Applying a 2.00% taac capacity rate yields a net tas capacity of the District is
$180,OOQ. This captured taac capacity is calculated in accordance with Miuttesota
Statutes, Section 469.174, Subd. 4 and 469.177, Subd. 2.
F. Original Tas Capacity and Captnred Tax Capacity of the HSS.
The HSS is expected to include the same parcels as the District. Therefore, the
net tas capacity of the HSS is $180,000 (the same as the District). Eapected
remediation expenditures of approximately $2.6 million deduoted frorn the
originai taY capacity results in the maYimum captured ta7c capacity allowed in the
asnount of $0.
2538922 (�
4�-tob5
G. Duration of the Tag Tncrement FYnancing DistzicC's E�stence.
The request for certification of the Disttict will be filed in 2004. The first tax
increments aze anticipated to be generated for taaces payable in the year 2007. The
duration of the Aistrict will run 25 years from the first receipt by the Port Authority
of taY increments, which is anficipated to be the calendar yeazs 2007 through 2032.
Seefion VIII. Alternate Estimates of the Impact of tfie Tax Increment FYnancing on the Net
Tax Cauacifies of Ali Ta�n� Jurisdictions.
The taxuig jurisdacrions in which the District is located in whole or in part are as follows:
a. Independent School District #625, whose boundaries are cotemzinous with those of
the City of Saint Paul.
The County of Ramsey, the total market value of wtuch the City of Saint Paul
contributes approxnnately 45%.
c. The Housing and Redevelopment Authority of the City of Saint Paul, whose
boundaries are coternunous with those of the City of Saint Paul.
d. The Port Authority of the City of Saint Paul, the requesting authority, whose
boundaries are coterminous with those of the City of Saint Paul and whose powers
to levy and use pzoperiy t�es are lunited.
e. Metropolitan authorities, such as the Metropolitan Council, Metropolitan Airports
Commission, Metropolitan Waste Control Commission, and the Metropolitan
Mosquito Control Dishict. Of these, only the Metropolitan Councii and the
Metropolitan Ivlosquito Control District currently levy t�es on real estate.
The Port Authority is required by Minnesota Statutes Section 469.175, Subd. 1(6) to make
statements relative to the alternate estimates of the impact of the taY inerement financing
on the net tax capacities of all taxing jusisdictions in which the ta� increment fnancing
dishict is located in whole or in part. For purposes of one statement, which is made in
Statement A below, the Port Authority shall assume that the estimated captured net taY
capacity would be availabie to the taxing jurisdictions without creation of the District.
For puxposes of the second statement, made in Statement B below, the Port Authority
shall assume that none of the estimated captured net tax capacity would be available to
the taxing jurisdictions without creation of the District.
Stateznent A.
Under the assumption that the esrixnated captured net tazc capacity would be available to the
taYing jurisdictions without creation of the District, creation of the District will serve to deny
these taxing jurisdictions the taYes from the captured net tazc capacity in the amount
estimated under Section VII.E. above. In addition, the ta�ces on the base value will also be
lost due to the HSS created within the District. For the period 2004, when the properiy is
2538922 1 Q
�f -lb�25"
held in the name of the Port Authority and is exempt from tasation prior to being sold to
private parties, there will be no tu�es pai8 from property in the District.
Statement B.
The Port Authority believes that none of the estimated captured net tax capacity would be
auailable to the tasing jurisdictions without creation of the District due to the expense of
getting the land to a state in which it would be conducive to the generation of such increased
value. Assuuiing this to be true, the taxing jurisdicfions would continue to receive the same
amount of taaces as they have currently been receiving based on the current net tax capacity
of the Dishict as set forth in Section VII.D. above. Once the tax increment district
teimniates in 2030, the taacnZg jurisdictions will receive taaces for pazcels estimated value
after redevelopment at $9 miIlion.
Section IX. Studies and Anatvsis Used to Determine Need for Tax Increment FSnancinQ.
The Port Authority has detenuined that the proposed development or redevelopment of the
District would not reasonably be expected to occur solely through private invesYment wiUun
the reasonably foreseeable future and that the increased mazket value of the site that could
reasonably be expected to occur without the use of tax increment financing would be less
than the increase in the market value estimated to result from the proposed development
after subtracting the present value of tYie proj ected tas increments for the ma�cimum duration
of the district permitted by the plan.
The Port Authority has studied the District and concluded that (a) due to the presence of
significant environmental contaminarion, and the significant costs of the remediation that
would have to be completed, redeve2opment of the District would not reasonably be
ezcpected to occur solely through private investment or the talc increment otherwise
available from the Disirict; (b) the HSS is not targer than, and the period of time which
incremeats are elected to be received is not longer than, that which is necessary to pay the
additional and si�ificant costs of the environmenYal remediation needed in the District.
Section X. Identification of All Parcels to be Included in the Distnict
Attached hereto in Appendix A and D is a list of the Property Identification Numbers for all
properties to be included in the District, a map showing the Project azea, the District and the
e�sting properties, and a legai description identifying the boundaries of the District.
Section HI. Hazardous Substance Subdistrict
Certification of the HSS wilt allow taJCes attributable to the base value of the Distzict to be
used to reimburse or pay a portion of the estimated $2.6 million of pollution tesling and
remediation costs. As was mentioned in Section VIII above, the HS3 will cause Ta:tes on
the base value of the Disirict to be lost until such time as the pollution costs aze satisfied.
Total estimated ta�ces payable in 2004 for the IJistrict were $31,200. A response action plan
2538922 1 1
o�-ta6s
has been completed; approved by Che MPCA, and implemented. The Port Autbority has
studied the Disfrict and concluded the development would not reasonably be expected to
occur solely through private investment and tax increment otherwise available from the
Disizict, for reasons stated in this plan, and therefore the use of the HSS is deemed
necessary.
Attached hereto in AppendiY B and D is a list of the Property Identification Numbers for all
properties to be included in the HSS, a map showing the Project azea, the HSS and the
existing properties, and a legal description idenrifying the boundaries of the HSS. Other
parcels that aze not designated hazardous substance sites are expected to be developed
together with a designated hazazdous substance site. The HSS is not larger than, and the
period of time during which increments are elected to be received is not longer than, that
wYrich is necessazy in the opinion of the authority to provide for the additional costs due to
the designated hazardous substance site.
Section X1I. District Administration and Annual Disclosure.
Aduinristration of the District will be the responsibility of the Port Authority. The
resolurions of the City and the Port Authority approving and creating the Aistrict will direct
the County to forward a11 tas increment from the District to the Port Authority. Tax
increments will be deposited into interest bearing accounts separate and distinct from other
funds of the Port Aut]�ority. Since tas increments are antieipated to be less than previously
incurred costs, no interest eamuigs are anricipated. Tas increments will be used only for
activities described in this tax increment plan.
The Port Authority will report annually to the State Auditor, county board, school board and
Department of Revenue regarding activities in the District as required by Section 469.175,
subdivision 5 and subdivision 6 and wili include information with regard to the District in
the data necessary to comply with such subdivisions.
Section XI[I. Modifications to Disirict
In accordance with Minnesota Statutes, Section 469.175, Subd. 4, any reduction or
enlargement of the geographic area of the District; increase in amount of bonded
indebtedness to be incurred, including a determination to capitalize interest on debt if that
det�+ination was not a part of the original plan, or to increase or decrease the amount of
interest on the debt to be capitalized; increase in the portion of the captured tax capacity to
be retained by the Port Authority; increase in total estimated taa� increment expenditures; or
desigiation of additional properiy to be acquired by the Port Authority shall be approved
only upon the notice and a$er the discussion, public hearing and findings required far
approval of the original plan. The geographic area of a tax increment financing district may
be reduced, but shall not be enlarged after five years following the date of certification of the
original tas capacity by the county auditor.
2538922 12
�� •.
Section XIV. Administrative Ex
In accordance with Mimiesota Statutes, Section 469.174, Subd. 14; and Minnesota StatuYes
Section 469.176, Subd. 3 adu�inistrative expenses means all expenditures of an authority
other than amounts paid for the purchase of land; amounts paid to conhactors or others
pzoviding materials and services, including azctutectural and engineering services, directly
connected with the physical development of the real properiy in the District; relocation
benefits paid to or services provided for persons residing or businesses located in the
District; or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds
issued pursuant to Section 469.178; or amounts used to pay other finauce obligations to the
extent those obligations were used to pay the preceding costs. Adminishative eapenses also
include amounts paid for services provided by bond counsel, fiscal consultants, and
plantung or economic development consultants. Adtuiuistrative eapenses of the District will
be pai@ from taY increments, provided that no tax incremenY shall be used to pay any
admiuistrative expenses for the District which exceed ten percent of the total taac incremeat
expenditures authorized by the tas increment financing plan or the total tax increments from
the Dishict, whichever is less.
Pursuant to Mivnesota Statutes Section 469.176, Subd. 4h, taac increments may be used to
pay for the county's actual administrative eacpenses incurred in connection with the Dishict.
The county may require payment of those expenses by February 15 of the yeaz foliowing the
year the expenses were incurred.
Section XV. Necessarv Improvements in the District
No taY increment shall be paid to the Port Authority after tl�ree years from the date of
certification of the original net tax capaciry of the Disirict by the County Auditor unless
within the three-yeaz period:
(1) bonds have been issued in aid of the Project pursuant to Section 469.178 of the TIF
Act or any other law, except revenue bonds issued pursuant to Minnesota Statutes,
Section 469.159 to 469165;
(2) ttie Port Authoriry has acquired properly within the District; or
(3) the Port Authority has constracted or caused to be const�ucted public improvements
within the Dislrict.
Since the Port Authority has already acquired appro�tnately 13 acres within the district, tY�is
test has been met
2538922 13
D�f-ID�oS
Section XVI. Use of Tag Increment
All revenues derived from tax increment shall be used in accordance with this taac increment
financing plan, and pursuant to Minnesota Statutes, Secrion 469.176, Subdivisions 4, 4e and
4j.
Section XVII. Not3fication of Prior Planned Imnrovements
Pursuant to Ivlinnesota Statutes, Sectian 469.177, Subd. 4, the Port Authority has diligently
searched the area to be included in the District and has nat found properties for which
building pernuts haue been issued during the 18 months immediately preceding approval of
the Plan by the Port Authority.
Section XVIII. Excess Tax Increments
Pursuant to Muanesota Statutes, Section 469.176, Subd. 2, in any year in which the taac
increment exceeds the amount necessary to pay the costs authorized by the tax increment
plart, including the amount necessary to cancel any taac levy as provided in Nfinnesota
Statutes, Section 475.61, Subd. 3, the Port Authority shall use the excess amount to do any
of the foliowing:
1. pay additional indebtedness used for project costs;
2. prepap any autstanding bonds;
3. pay into an escrow account dedicated to the prepayment of such bonds;
4. discharge the pledge of tazc increment therefor;
5. return the excess to the County Auditor for redistribution to the respective taJCing
jurisdictions in proportion of their taac capacity rate.
In addition, the Port Authority may, subject to the limitations set forth herein, choose to
modify the Plan in order to finance additional public costs in the TaY Increment
Financing Aistrict or Redevelopment Project Area.
Section XIX. Fiscal Disuarities
The Port Authority and the City have elected to compute Fiscal Disparities contriburion for
the District in accordance with Section 469177, subdivision 3, paragaph a.
Sec6on XX. Requirements for Agreements with Developers
Pursuant to Minnesota Statutes Sections 469.1'76, subd 5, no more than 25%, by acreage, of
the property to be acquired in the District as set forth in this Plan shall at any time be owned
by the Port Authority as a result of acquisition with the proceeds of bonds issued pursuant to
Section 469.178, without the Port Authority having, prior to acquisition in excess of 25°l0 of
the acreage, concluded an agreement far the development or redevelopment of the property
acquired and which provides recourse for the Port Authority shouid the development not be
completed.
?535922 14
0�-1 t�5"
Section XXI. Development and Job Creation
To the e�tent applicable, the Port Authority agrees to comply with Miunesota Statutes,
Sec6on 116J.991, which states that a business receiving state or local government assistance
for economic development or job growth purposes, inclnc3ing tas increment financings, must
create a net increase in jobs and meet wage level goats in Mimiesota within two years of
receiving assistance.
2538922 I S
D� �oms
Appendix A
Properiy Identification Numbers wittrin the District
PARCEL ID ADDRESS
2538922 A-1
��f
Appendig C
Ramsey County Estimated Mazket V alues
PARCBL IDADDRESS BLDG. VAL. LANA VAL.
TOTAL VAL.
TOTALS
2538922 c_ 1
_�
0
�; ���#�#��, �i,: i,� ft t g �a
;t 34'.�Si a ;lt? �
;4 :i i �� ¢ 7 t � j�i Fi� ;� �E
� �' ��Aillfl. ; "a�j� �t1` �'� c i5ij= ;�
DI. j F`i � q i�� i y �lt{7 �3� 3zi iiai�, �.
+�C : ag�-�FiF�i3ta5'.Y�.jigli [ :i� szFiil F
I.3 23� }6 � Ea sii{ � F1�i
f f lll P i; SiltAieni 3 f�� �Ia�a 9i�
1
}f. � ;i
iti���'-4� 3j °f� ;
d � 0 � � �� e j
� 4 ���.� �;! � �
} ' a � " 4 f i .#
gf ii3 {;1§ _:�� i e � ' pf
� il •, �5 � �} :'- iV � � f € s
� ' E 31-
�! � i°s, �. �,� ! B �j a m ; t
� .} 3; �1 �'�'t�a i� `��( :: � ' � t; � _�E
n.
e. �li ESf!°'� '�i
� E i
i� �' e"es vi
F i�;�F�,�� } t �.;s - �i?". � ° p� � t;a e
��{N:$e�`i4�� � �� ����:�i��t�l �lti
��E��i��� �� �j�s' �$`'il:�
� 5
� a�� lB,� g�j; t �! � 3 ;y;f3
o �����ia!11So���ii�l3�F�a3ila#idff
w � II'I�Nil�l� I..
;;Ij �i,,;�;._.,.......o. b,
, �..
' ii�l �il(iii
�•_
��`
a
R�$ �
P�
�
r
3
�
i
F
s
1� �
a�
:�
2a
y 5
4 �e
l�
f i�
`�
---------------- ---
---------------------- ---
o....¢. .� �
�_`;�"_ �"�.,
� ^` '�\ ��� s .;�
� � � i�� ' �
s ,` �:� `,'` �
\ ' ` " ,
�� •. � '
�� ' • '.' �r
I �. ��
' ; y
. j �! '� �� � ,
�
• �0 a �> ' �
. ,
�l�_ ?`----
) i� S i,�,''��- ; '' 2
, �y�s� i
," � � : ;�z:
: .. k�� i
� = t ., �
r
� ;
y � � :� . � ..__�'...m... ....
s �9 ;st�-�.
k
'i 3 �, Sp
' A ° 9 �
;3 _ , ,
�;�. • ' �a '� � •v
; . _` A . � �� :, -.,
' �� ���� \ �. E° � , "
'•> :i � _ _• �
!I "r 6 s Sj ' _ "� L .�' �• .
-., ;, , .
•,. •. v0 �.
; ,.
� .. .,
.S o s �.,` �� v �; � '4
•+. � % 1 9
t/
! a n T 1 �. e cr::_ '�, '1 /X l.r1
� , , 'V 's
p �' , � ,'�. ° d 'i
I .+ �
a
.'.'I p t . � . . � � � � A- ¢ ,4
.. j; .. �. . ' eo � 9t � >
a �
},°.l�_ _� ` /�
a.� __'_sn__
r � }_� � b�
Y � L �S
, ,s , � , �3�i
_ 9. _ � s.: V �y ��Y
i : � __'"•. .
. ___- : '.M......_,' �gj
� .R...a�..-.�_ . �.........,.
r .. . ...._._...��.,.,. ; �eess� 3raa
1 ' �:_.._.' _....._.._.__..._......_.__......
�__�__—'_—__—_'—__,�..��..a..,.. -
i
}
I F� �£
I m� 93
� a 3.
1 ,
I
1
I
i —
I
I
i >_
� c
i _
1 �
I -
t =
i =
<
W�
��
»
�;
F
0
3
w
a
a
<
�
0
i
i
�
uN °.j
I z¢
, o ;::
I s¢ 'aec
� o�
p o $�S
� 'Z :'
� gg.
i
i a <i
� � i i
` �a,�� �
� �lEER
i
I '
I
I
a�-i��
Appen@ix E
Great Northern Business Center, Phase II
Estimated Sources and Uses
Sources of Funds
Grants:
US EPA
Mn DEED
Metropolitan Council
St Paul STAR
Subtotai
BNSF cleanup contriburion
Bonding
Port Authority EPA revolving loan
Port Authoriry interfund advance
Port Authority interfund advance
SnbYotal
Tas Incremeat
EstimaYed Sources of funds
Estimated Uses of Funds
Site acquisition, assembly and relocation
Remediarion
Soil conection
Site unprovements and utilities
Professional services
Marketing
Contingency
Bond principal
Bond interest
Revolving loan principal
Revolving loau interest
Interfund advances
Interest on interfuud advance
Snbtotal
Administrative costs
Estimated Uses of funds
$ 400,000
1,460,000
700,000
112,000
2,672,000
1,100,000
2,100,000
1,000,000
1,025,000
703,000
8,600,000
5,850,000(1)
14,450,000
1,000,000
3,100,000
1,200,000
900,000
1,000,000
100,000
500,000
Z,100,000
2,000,000
2,000,000
965,000
t2)
�2)
13,865,000
585,000 (3)
14,450,000
Footnotes:
(1} Ta�c increments are based upon an estimated taY capacity of $180,000 and a 13�%rate
for 25 years. Actual amounts will vary.
zsss9n E-1
ny-ia�s
(2) Interfund advances will be repaid if funds aze availabie
(3) Administrative costs wili vary based upon actual increment and actual documented costs,
not to exceed the statutory limit of 10%.
2538922 Ei'2
o�-ta65'
NOTICE OF PUBLIC HEA.RING
NOTICE IS HEREBY GIVEN that the City Councii of the City of Saint Paul, County of
Ramsey, State ofMinnesota, will hold a public hearing onNovember 3, 2004, at approximately 530
p.m. at the Saint Paul City Councii Chambers in the Saint Paul City Hall, Salnt Paul, Minnesota,
relating to the Great Northem Business Center Phase II Redevelopment Tax Increment District and
Hazardous Substance Subdistrict and the Adoption ofthe Tax Increment Financing Plan (the "Plan")
for the establishment of the Great Northern Business Center Redevelopment Tax Increment
Financing District (the "District") and the creation therein of the Hazardous Substance Subdistrict
(the "HSS") pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Sections
469.174 to 469.174, all inclusive, as amended. A copy of the Plan and map is on file and available
for public inspection at the office of the City Clerk at City Hall.
The property proposed to be included in the Great Northern Business Center Phase II
Redevelopment Tax Increment Financing District is an approximately 13-acre site located on
Minnehaha Avenue between Dale Street and Anmdel Street.
All interested persons may appear at the hearing and present their view orally or prior to the
meeting in writing.
BY ORDER OF THE CITY COLINCIL OF
THE CITY OF SAINT PAUL, MINNESOTA
Dated: October 15, 2004
Donald 7. Luna
City Clerk
(October 21, 2004)
G :}l�d'.�iP4 7 ;.�y��arn /�S]niC1
t , � :�t: