04-113Substitute "
CounCil Fi1e # O�_��
Z ��� U � Resolution �
Green Sheet # .T.+�
RESOLUTION
�l TY OF SAINT PAUL, MtNNESOTA
Presented
Re�erred To �--� Committee: Date
RESOLUTION APPROVING T'FIE
ESTABLISHMENT OF THE KOCH MOBIL
TAX IN�REMENi rliyAl>T�i'iiTi> DiSTRIC i
AND APPROVING TAX INCREMENT FINA1V'CING PLAN THEREFOR
9
1V
il
12
13
14
15
16
17
18
;9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
WF�REAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
"FIIZA") has heretofore, with the approval of the City Council of the City of Saint Paul, Minnesota (the
"City"), a3optzd the Koch Mobil Redevelopment Plan (the "Redevelopmant Plan") for the Koch Mobil
Redevelopment Project Area (thz "Project Area" ), pursuant to 1VIin:.zsota Statates, Sections 459.001 to
469.047, both inclusive; and
WHEREAS, �aidRedeveloprient Pla;, cortains an idenrification ofneed and statement of objectives and
program of the HRA for carrying out of a redevelopment project, including property to be acquired, public
improvements to be provided, development and redevelopment to occur, and sources of revenue to pay
redevelopment costs of the Project; and
WIIEREAS, the HRA has proposed the creation within the Project Area of the Koch Mobil
Redevelopment Tax Increment Financing District as a redevelopment tax increment financing district under
Minnesota Statutes, Section 469.174, Subdivision i0 (the "iaY Increment Financing District"), and the
adoption of a TaY Increment Financing Plan therefor (the °Tas Increment Financing Plan"), all pursuant to
and in accordance with Minnesota Statutes, �ection 469.174 through 469.1812 (the "Taac Increment Act");
and
W'h`EREAS, the HRA nas performed all actions required by law to be performed prior to the creaiion
of the Taac Increment Financing District and adoption of the TaY Increment Financing Plan therefor,
including, but not limited to, notification of the Ramsey County Commissioner representing the area of the
County in which the Tax Increment Financing District is located, and delivering a copy of the Tas Increment
Financing Plan to Ramsey County and Independent School District Number 625, which haue taacing
jurisdiction over the property to be included in the Tax Increment District; and
WIIEREAS, on this date, the City Council conducted a public hearing on the Tax Increment Financing
Plan, after published notice thereof; and
WHEREAS, at said public hearing the City Council heard testunony from all interested parties on the
Tas Increment Financing Plan.
1613363v2
�-113
44
y 45
46
47
48
49
50
51
52
53
54
5�
56
57
58
59
60
61
62
63
64
65
66
b7
68
69
70
71
72
73
74
?5
76
77
78
79
80
8i
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
NOW THEREFORE BE IT RESOLVED BY the City Council of the Ciry of Saint Paul, Minnesota as
follows:
Section 1. Findings for the Creation of the Koch Mobil Tas Increment Financing District and
Adoption of TaY Increment Financing Plan therefor.
1.01. The City Council hereby finds that the creation of the Tax Increment Financing
District and adoption of the Tas Increment Financing Plan therefor, are intended and, in the
judgment of the City Council, its effect will be, to cany out the objectives of the Redevelopment
Plan and to create an unpetus for the clearance of blighted structures and the construction of owner
occupied and rental housing facilities, and will otherwise promote certain public purposes and
accomplish certain objectives as specified in the Redevelopment Plan and Tas Increment Financing
Plan.
1.02. The Ciry Council hereby finds that Redevelopment Ta�c Increment Financing District
qualifies as a"redevelopment districY' within the meaning of the TaY Increment Act for the
following reasons and because the following conditions aze reasonably distributed throughout the
Tas Increment Financing District:
T�]0 T2Y TP.C:BP.:e.^.Y F1Il4.^.C1Ilb T�:S?.^.CT 1S, pursuant *.o Mirs.esota Stah:tes, Sectien
469.174, Subdivision 10(a)(1) and (3), a"redevelopment districY' because it consists of a project
or portions of a project within which one or more of the following conditions, reasonably
distributed throughout the District, exist: (a) parcels consisting of at least 70% of the area of the
portion of the �:suict (tY�.e "SubsYan3�d Building Pazcels") aze occupied by buildings, s�eets,
utilities, paved or gravel parking lots, or other similar structures; and (b) more than 50% of the
buildings not including outbuildings, located within the Substandard Building Pazcels of TaY
Increment Financing District aze "structurally substandard" (within the meaning of Minnesota
Statutes, Section 469.174, Subdivision 10(b)) to a degree requiring substantial renovation or
clearance. The buildings are structurally substandard because they contain defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and ventilation,
fire protection including adequate egress, layout and condition of interior partitions, ar similar
factozs, which defects or deficiencies are of sufficient total significance to justify substantial
renovaiion or ciearance. In addiiion, ihe costs of bringing the structnraily substandar3 buildings
into compliance with building codes applicable to new buildings would exceed 15% of the cost
of constructing new structures of the same size and tyne on the sites. The "stnxcturally
substandard" buildings are not in compliance with the building code applicable to new buildings,
and the costs of modifying such buildings to satisfy the building code is more than 15 percent of
the cost of constructing a new structure oi the same square footage and type on the site.
The reasons and support facts for these deterxninations are set forth in a report dated
November 24, 2003 prepared by Short, $Iliot, and Hendrickson, Inc., a copy of which is on file
with the Executive Director of the HRA, and which is incoxporated herein by reference in its
entirety and the resolutions adopted by the City (CC #03-1081) and the HRA (HRA #03-12/10-9)
with respect to substandard buildings that were removed prior to adoption of this resolution.
The remaining property to be included in the Tas Increment Dishict (the "Tank Fann
Pazcels") consists of property whose immediate previous use was for tank facilities, as defined in
Minnesota Statutes, Section 115C.02, subd. 15, and such tank facilities were reasonably
distributed throughout the Tank Farm Parcels and (a) had a capacity of more than 1,000,000
gallons, (b) were located adjacent to rail facilities, and (c) have been removed or are unused,
underused, inappropriately used, or infrequently used.
The reasons and supportmg facts for these determinations are set forth in a letter dated
Novamber 10, 2003 prepared by Peer Environxnental, a copy of which is on file with the
Executive Director of the IIRA and which is incorporated herein by reference in its entirety.
1613363v2 2
o� ie3
lol
�02
103
104
105
106
107
los
109
110
111
112
113
114
115
116
117
118
119
t?p
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
1S8
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
The City Council hereby makes the following additional findings:
(a) The City Council further finds that the proposed development, in the opinion of
the City Council, would not occur solely through private investment within the reasonably
foreseeable fuhxre and, therefore, the use of taY increment financing is deemed necessary. The
specific basis for such finding bein�:
The property on which the development will occur would not be
developed in the reasonably foreseeable future because it has fra�nented
ownership, contains several blighted buildings, and the property is
polluted with hazardous substances.
(b) For purposes of compliance with Mivuesota Statutes, Section 469175,
Subdivision 3(2), the City Council hereby finds that the increased mazket value of the property to
be developed within the Koch Mobil Tax Increment Financing District that could reasonably be
expected to occur without the use of ta�c increment financin� is less than the increased market
value estunated to result from the proposed development (i.e., $197,000,000) after subtracting
the present value of the proj ected ta�c mcrements for the maYUnum duration of the Koch Mobil
Tas Increment Financing District (i.e., $15,683,266). The current market value of the property in
rhe `r� L Financing Dist!ic± is approximately $5,400,000, an3 wi±h tax ir.c:en:ent
financing the market value of the property will increase by $197,000,000 to approximately
$202,000,000. Tn making these findings, the City Council has noted that the property has not
been developed for many yeazs and would likely remain so if tas increment fmancing is not
available. Thus, the use o: tax inc:ea:er.t financ:ng will be a pcsitiva net gain to the City, the
School District, and the County, and the tax increment assistance does not exceed the benefit
which will be derived therefrom.
(c) The City Council Farther finds that the TaY Increment Financing Plan conforms to
the general plan for the development or redevelopment of the City as a whole. The specific basis
for such finding being:
The Ta�c Increment Fin2ncing Plan will generally compinnent and serve to
implement pol:cies adopted in thz City's corripreYicnsive pian. The
housing development contemplated by the Tax Increment Financing Plan
is in accordance with the small area plan adopted for the Project Area.
(d) The City Council further finds that the Tas Increment Financing Plan will afford
�sia;timnm opportunity consistent with the sound needs of the Ciiy as a whole for tne
development of the Tax Increment Financing District by private entexprise. The specific basis for
such finding being:
The proposed development to occur within the Tax Increment Financing
District is primarily rental and owner occupied housing. The proposed
development will increase the taxable market valuation of the City and
expand the available housing facilities by approxisuately 1,000 units of
owner/occupied an3 rental housing facilities.
(e) The City elects the method of tas increment computation set forth in Minnesota
Statutes, Section 469.177, subd. 3(a).
1.03. The provisions of this Section 1 aze hereby incorporated by reference into and
made a part of the Tax Increment Financing Plan. A copy of the Tax Increment Financing Plan is
attached hereto as E�ibit A and is incorporated herein by reference in its entirety.
Section 2. Creation of the Koch Mobil Tax Increment Financing District and Approval of the Tax
Increment Financing Plan therefor.
1613363v2
�,
158
; 1�9
160
161
162
163
164
165
oY-��3
2.01. The creation of the Koch Mobil Tax Increment Financing District and the Taac
Increment Financing Plan therefor are hereby approved.
2.02. The staff of the FIltA and the HRA's advisors and legal counsel are authorized and
duected to proceed with the implementation of the Tas Increment Financing District and the Tas
Increment Financing Plan and for this purpose to negotiate, draft, prepare and present to the
Boazd of Commissioners of the HRA for its consideration all fiuther plans, resolutions,
documents and contracts necessary for this purpose.
Requested by Department of:
Plannina & Economic Develooment
Sy:
Approved by Financial Services
By:
Form Approved by City Attorney
By:
Approved by Mayof :�'�/ Date
r
Mayor �or Submission to Council
By:
Adopted by Council: Date �b� �(��
Adoption Certified b� Cour.cil Secretary
DEPARTMENT/OFFICFJCOiJW C II..
PED
COIV'IaCT PERSON & PHONE:
Jenny Wolfe, 6-65�5
AStiST BE ON COUNCII, AGENDA Ey (DATE)
Public Hearing 02/04/2004
TOTAL : OF SIGtiAT[JRE PAGES
DATE I�i'TTIATED 3OI.O557 ��-'� �+
oi�2v2oo4 GREEN SHEET vo.:
INIT TE I�i'ITiAL/D?.TE
� 1 DEPARTMENT DIIt 5 CTTYCOUNCII, i�a�el�Yi�.ne.
ASSIG`i ? CITY ATTORN"EY _ CPfY CLERK
YiJMBER 3 FINANCL4L SERV DIR FL�iANCIAL SERV/ACCTG
FOR 4 MAYOR (OR ASST.) _ CIVII, SERVICE COMIvIISSION
ROUTL�G
ORDER
aL,L LOCATIONS FOR SIGIrAT(JRF,)
ACTION REQUESTED:
Signature on resolution appzoving the establishment of the Koch Mobil Ta:� Increment Financing District and Pian.
RECOMMENDATIONS: Approve (A) or Reject (R)
°LAiYNING CONIIvIISSIQN
CIB COMM7ITEE
CIVII. SERVICE COiVtMISSION
PERSONAL SERVICE CONTRACTS M[JST ArSWER THE FOLLOWING
QUESTIONS:
1. I-Ias this pe:son/ �^a evm worked under a conCact fcr tt�.is depamr.ent?
Yes No
2. Has this person/fum ever been a ctty employee�
Yes No
3. Dow fltis person/5mi possess a slrill not nomtally possessed by any cmrent city employee?
Yes No
Eaplain all yes answers on separate sheet and attach to green sheet
INTTIATING PROBLEM, ISSUE, OPPORTUNTTY (Who, What, When, Where, Why):
The HRA has proposed the creation of the Koch Mobii Tax Increment Financing District. The Saint Paul City
Councii is required to hold a pubiic hearing and approve the findings creating the district. The findings include
determining that the area qualifies as a redevelopment district, stating that there exist substandard buildings and
unused industrial properties.
I The City and the HRA have approved the IIRA's participation in the Koch/Mobil project through various actions.
The Koct�/Mobil Project redevelops 65 acres of vacant industrial property, previously containing petroleum tanks,
located along West 7�' Street, between Otto and Montreal Way. The Project anticipates the conshuction of up to
1,000 housing units. The HRA will improve the properiy for a cost of approximately $30 Million. The latest action
was approving the financing of public improvements through the issuance of Tas Increment Financing bonds for
about half of the $30 million necessary. A public hearing and approval of the Taac Increment Financing Plan needs
� to occur at the City Council prior to execution of the bond financing.
ADVAN'1'AGE$ IF APPROVED:
The Cify will approve the findings and the establishment of the Koch Mobil Tax Increment Financing District. The
HRA will then be asked to approve the district at their February 11 meeting. Upon all approvals, the public
infrastructure for the Koch/Mobil project will be financed through the issuance of Tax Increment Bonds.
DISADVANTAGESIFAPPROVED:
None.
DISADVeL�'TAGES IF NOT A,PPROVED:
The financing will not be available to complete the Koch/Mobil Proj ect.
TOTAL A110IINT OF TRANSACTION: N/A
FUNDING SOLRCE:
COST/REVENUE BUDGETED:
A(:TNITY NUA�ER:
FIN��'CIAL L�EORNIATIOY:
ATTACAMENT A V
TAX INCREVIENT FI�i iANCING PLAN
for the establishment of the
KOCH MOBIL TAX INCREMENT FINANCING DISTRICT
(a redevelopment disfrict)
HOUSIlvrG A�'v'D REDEVELOPME:v'T AUTHORITY OF TT �'
CITY OF SAIIVT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Approved by City Council: February 4, 2004
Adopted by Authority: February 11, 2003
This document was drafted by:
BRIGGS AND MORGAN (NINID)
Professionai Association
2200 First National Bank Bldg.
St. Paul, M1V 55101
(651) 223-6625
iszse�a�z
o�-e�3
TABLE OF CONTENTS
(for reference purposes only)
TAX INCRENFENT FII�T��ICNG PLAi�i
FOR Tf� KOCH MOBIL TAX L�iCREiviENl' FINANCING DISTRICT
Pa2e
Section 1.
Secrion 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8
Section 9.
Secrion 10.
Section 11.
Section 12.
3ecrion 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
Section 19.
Section 20.
Section Zl.
Section 22.
Section 23.
Section 24.
Section 25.
Forward.................................................................................................................. 1
StatutoryAuthority ................................................................................................ 1
Sfate�ent o:Objectives ......................................................................................... 1
Redevelopment Plan Overview .............................................................................. 2
Pazcels to be Included in Tax Increment Financing District .................................. 2
Pazcelsto be Acquired ........................................................................................... 3
Deveiopment Aciivity in TaY Increment Financing Dishict for which
Contracts have been Signed ................................................................................... 3
Other Specific Development Expected to Occur within Redevelopment
Area ........................................................................................................................ 3
Estimated Cost of Project; Tax Increment Financing Plan Budget ....................... 3
Estunated Amount af Bonded Indebtedness .......................................................... 3
Sourcesof Revenue ................................................................................................ 4
Estimated Captured Tax Capacity and Bstimate of Tazc Inerement ....................... 4
Type of Tas Increment rinancing District ............................................................. 4
Duration of Tax Increment Finaneing District ....................................................... 5
Esrimated Impact on Other Taxing Jurisdictions ................................................... 5
Modification of Taac Increment Financing District and/or Tas Increment
Fir.ancing Plan ....................................................................................................... 5
Modifications to Tax Increment Financing Dishict ............................................... 5
Administrative Expenses ....................................................................................... 6
Limitationof Increment ......................................................................................... 7
FJseof Tas Inerement ............................................................................................. 8
Notification ofPrior Planned Improvements ......................................................... 8
ExcessTax Increments .......................................................................................... 8
Requirements for AgreemenYs with Developers .................................................... 9
Other Limitations on the Use of Tax Increment .................................................... 9
CountyRoad Costs .............................................................................................. 10
iszse�s�z i
Section 26. Assessment Agreements ...................................................................................... 11
Sectian 27. Adminislsation of the Ta3c Increment Financing District ..................................... l l
Secfion 28. Financial Reporfing Requirements ...................................................................... ll
EXHIBIT A- TAX I�i TCREMENT FL�IANCi�i TG PLAN SUDCsET ........................................ A- i
BX�IIBIT B- PROSECTED TAX INCREMENTS ................................................................... B-1
EXHIBTT C- FISCAL AND ECONOitifIC IIvIPACT ON OTFIER TAXIlV"G
JIIRISDICTIONS .............................................................................................. C-1
EXf�IT D— MAP OF TAX INCREMENT FINfLVCING DISTRICT ................................. D-1
O�-��3
1525678v2 11 �
p�-!�3
TAX I�i tCRE�1ENT F�ANC iNG PLAN FOR
THE KOCH MOBIL TAX INCRE1�fENT FINANC�IG DISTRICT
Section 1. Forwazd. The Housing and Redevelopment Authority of the City of Saint
Paul, Mianesota (the "HRA"), and its staff and consultants have prepazed the following
informa�on for the establishment of a redevelopment tax increment financing district (the "Tas
Increment Financing District"). The Tax Increment Financing Dish is located within the
Koch-Mobil Redevelopment Project Area heretofore established by the HRA (the
"Redevelopment Proj ect Area").
Section 2. Statutory Authoritv. There exist azeas within the City of Saint Paul (the
"City") where public involvement is necessasy to cause development to occur. To this end, the
HRA has certain statutory powers pursuant to Minnesota Statutes, Section 469.001 to 469.d47
(the "HI2A. Law") and Minnesota Statutes, Secfion 469174 through 469.179 (the "Tax Increment
Financing AcP' or "TIF AcY'), to assist in financing public costs related to a redevelopment
project.
Section 3. Statement of Obiectives. The 1 as lncrement Financing District consists of
approximafely 6� acres of land and adjacent and internal rights-of-way. The Ta�c Increment
Financing District is being created to facilitate the redevelopment of a blighted area by the
construction of new owner occupied and rental housing facilities, inciuding relating pazking and
public improvements (collectively, the "Project"). The tax increment financing plan is expected
to achieve the objectives outlined in the Redevelopment Plan for the Koch-Mobil Project Area.
The following are some of the objectives'oeing facilitated by the Taac Increment Financing Plan.
A. Provide Affordable HousinQ for Saint Paul Residents.
The available housing for reside:its in the Pro�ect A:ea will be expande3 when the
approximately 1000 units of housing are constructed.
B. To Redevelop Underus�d Propertv.
The Tas Increment Financing District currently conta3ns properties that were previously
occupied by tank faciiites aud which have been underutilized for many years because of, among
other things, the existence of contaminated soil. In order to encourage new development in the
area, remove and prevent the emergence of blight and blighting influences, tas increment
financing must be used to encourage the development of new housing facilifies.
C. Traxisit
The property is located at a key transit node for West Seventh Street Area which has been
identified as a central transit corridor. The project will result in a higher intensity, mixed use
development that interrelates development with multi-model transportation options.
iszse�s�z
Dy-//3
D. Bxpand the Ta�c Base af the Citv of Saint Paul.
It is expected that the tazable market value of parcels in the Tas Increment Financing
Disirict will increase by approximately $197,000,000 as a result of the new development.
The activities contemplated in the Redevelopment P1an and this Tas Increment Financing
Plan do not preclude the undertaking of other qualified development or redevelopment activities.
These activities aze anticipated to occur over the life of the Tax Increment District and the
Redevelopment Project.
Section 4. Redevelonment Plan Overview.
1. Property to be Acquired — Any of or all of the property located within Taac
Increment Financing District or Redevelopment Project Area may be acquired by
the HRA. The HRA may acquire properties with or without having entered into
an agreement with a private developer.
2. Relocation - if necessazy, complete relocation services are available pursuant fo
ivlinnesota Stamtes, Cnapter i i7 and other retevant state and federal iaws.
3. The HRA may sell or assist a developer with the cost of acquisition of selected
propenies within 1 a7c Increment Financing District or Redevelopment Project
Area, or may lease Iand or facilities to a developer.
Section 5. Parcels to be Included in Taz Increment Financin� District . The following
parceis located in the City of Saint Paul, Ramsey County, Nfimiesota are to be included in the
TaY Increment Financing District:
PID Number Address
142823216002 778 Otto Ave.
1428Z3210001 1428 7` St. W.
142823210033 1534 Adrian St.
142823120011 Unassigned
142823120004 764 Otto Ave.
142823120003 0 Butternut
Ineluding 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 Disirict is attached hereto
as Exhibit D.
FURTHER INFORNIATION RECzARDING THE IDENTIFICATION OF THE PARCBLS TO
BE INCLUDEA IN THE TAX INGREMENT FINANCING DLSTRICT CAN BE OBTAINED
FROVI THE EXECUTIVE DIltECTOR OF THE HRA.
� T nis parcel will be subdivided prior to certificarion of the Tax Inerement District. Approximately the southwestern
2/3rds of this parcel wiIl be ineluded in the Tzz Incremznt District.
tsz567s�z 2
o �-i�
Secrion 6. Parceis to be Acquired. The IIRA may acquire and finance all or a part of the
costs of acquisirion of all or a portion of the parcels identified in Section 5 of this Tas Increment
Financing Plan. The HIZA may also acquire parcels in the City which are outside the Tas
Increment Dis4rict in order to encouraae the development of affordable rental housing facilities
as anticipated by Section 24, clause 4 hereof. Prior to acquiring any parcels with tas increments
in excess of fhe percentages permitted by vIimiesota Statutes, Section 469176, subd. 5, the HItA
will enter into an agreement with a private developer for the development of the pazcels which
will provide recourse to the EIIZA if the development is not completed. The HRA ma� use its
powers of eminent domain to acquire parcels which it cannot obtain through private negotiation.
The HRA may acquire property by g:ft, dedicafion or direct purchase from willing sellers
in order to achieve the objectives of the taac increment financing nlan.
Such acquisitions will be undertaken only when there is assurance of funding to finance
the acquisirion and related costs.
Secrion 7. Develonment Activitv in Tas Increment Financin¢ District for which
Contracts have been Si�ned. The following contracts have been or will be entered into by the
HRA and fhe persons named below:
A Development Agreement by and between the HRA and Saint Paul Riverbluff,
LLC, in connection with their purchase of properiy Iocated in the Taic Increment
District and the construction of approximately 1,000 units of owner occupied and
rental housing units (the "Development").
Section 8. Qther Specific Develoument Expected to Occur within Redevelo�ment Area.
The HRA does not anfieipate that other future development in fhe Tax Increment Financing
Disfrict will occur.
Section 9. Estimated Cost of Project; Tax Increment Financist� Plan Budeet. The HRA
has dzternuned that it wiil be necessary to provide assistance for certain public cosYs of the
Development. To facilitate the Development within the Tax Increment Financing District, this
Tax Increment Financing Plan authorizes the use of tax increment fmancing to pay for a portion
of the cost of certain etigible expenses. The estimate of public costs and uses of funds associated
with Tas Increment Financing District is outlined on E�ibit A.
The HRA may spend tax increments or other revenues identified in Seclion 11 hereof in other
azeas of the City. Any eacpenditure of talc increments outside the Ta�c Inerement District will
comply with the pooling limitations described under Secrion 24, pazagraph 2, as modified by
paragraph 4 hereof.
Estunated costs associated with Taic Increment Financing Disirict aze subject to change and may
be realIocated between line items by a resolution of the FII2A. The eost of all acrivities to be
frnanced by the tas increment will not exceed, without formal modification, the budget for the
tas increments set forth on Exhibit A.
Section 10. Estimated Amount of Bonded Indebtedness. The expenditures authorized by
this Tax Increment Financing Plan may be paid for either on a pay-as-you-go basis or paid from
is2ss�a�z
o � �e3
the proceeds of tax increment revenue bonds or notes. If bonded indebtedness is issued by the
HI2A or the City, the principal amount of permanent long term financing is esiimated not to
exceed 512,580,000. Prior to the issuance of the permanent financing, the City or the HIZA will
issue multiple temporary bond issues estimated to fotal �47,860,000.
Section l I. Sources ofRevenue. The costs outlined in Section 9 above will be financed
$om proceeds of the sale of revenue bonds or notes, or on a pay as you go basis through the
annual collecrion of taac inerements. Other sources of revenues to pay the costs include sales taY
revenues, loans of general funds of the I�tA and City, land sale proceeds, proceeds from the sale
of non-taac increment revenue bonds, grants or loans from the Metropolitan Council or private
financing obtained by the private deveiopers. The market value upon completion of the Project
is esTia::ated ±o be apgroximate!y �a202,000,0�J0.
Section 12. Esfimated Captured Tax Capacitv and Estiznate of Taac Increment. The most
recent taa: capacity of Tas Increment Financing District is estimated to be $98,844 as of 3anuazy
2, 2003. It is anticipated that the originai tax capacity will be reduced to approximately $58,857
as a result of the reclassification of the praperty to housing. The captured tax capacity of Tax
Tncremeni Financing Dis7ict, ae the completion of development wnich is estimated to occur by
December 31, 2013, is estimated to be $1,990,162.
The HRA elects to retain all of the cantured tax caoacity to finance the costs of Tax
Incremenf Financing District. The F3RA elects the method of ta�c increment computation set
forth in Minnesota Stahztes, Section 469.177, Suhd. 3(a).
Section 13. Type of Tax Increment Financinp Distriet. Tax Increment Financing District
is a redevelopment district established pursuant to Minnesota Statutes, Section 469.174, Subd.
10, clauses (a)(1) and (i)(3).
The parcels bearing PIN numbers i42823210002 and 1428231200 i 1 are both properties
whose immediate previous use was for tank facilifies, as defined in Minnesota Statutes, Secrion
115C.02, subd. 15, and such tank facilities were reasonably distributed throughout the parcels
and (a) had a capacity of more than 1,000,000 gallons, (b) were located adjacent to rail facilities,
and (c) have been removed or aze unused, underused, in appropriately used, or infrequently used.
The reasons and supporting facts for these determinations aze set forth in a Ietter dated
November 10, 2003 prepared by Peer Environmental
The other parcels meet tke requirements of Section 469.174, Subd. 10(a)(1) in that at
least 70% of the area of these parcels is occupied by buildings, sh utilities, paved or gravel
parldng lots ar similaz structures and more than 50% of the buildings, not including outbuildings,
aze "structurally substandard" to a degree requiring substanfial renovation ar clearance. The
"structurally substandazd" build'mgs are not in compliance with the building code applicable to
new buildings, and the costs of modifying such buildings to satisfy the building code is more
than 15 percent of the cost of conshucting a new structure of the same squaze footage and type
on the site. The reasons and support funds for these determinations aze set forth in a report dated
November 24, 2403 prepated by Short, Elliot, and Hendrickson, Inc., a copy of which is on file
with the Executive Director of the HRA.
uzsb�a�z 4
o� �t3
The HRA and the Ciry have determined that the proposed development of the Tas
Tncrement Financing District would not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and that the increased market value of the
site that could reasonably be expected to occur without tke use of tax increment financing would
be less than the increase in the mar&et value estimated to result from the proposed development
after subtracting the present value of tfie projected tas increments for the maximum duration of
the Tas Increment Financing Dishict permitted by the Tas Increment Financing Plan.
Section 14. Duration of Ta�c Increment Financine District. The durafion of Tax
Increment Financing District wi11 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 2006 or 2007. If any
tax ir.ctement is received in 20Q5 it is exgec±ed to be based m�st?;� or. anflzfion since :he
constxuction of the Deveiopment is not anticipated to commence unti12005. Attached as Exhibit
S is the projectzd receipt oftax increments from the Tax Increment Financing Dislrict.
Section 15. Estimated Imnact on Other Taacine Jurisdictions. Since the coastruction
within the Tas Increment Financing District would not haue occurred without tas incremenf
financing, the impact is $"v to Yne oiher i�ing jurisdictions. No�viinstanding the fact Fnat `ine
eonstruction would not have oecurred without talc inerement assistance, the estimated imnaeY of
Tax Increment Financing District if the "bnt for' test was not met is set forth on E�ibit C.
Section 16. Modification of Tas Increment Financin� Bistrict andlor Tas Tncrement
Financina Plan. No modifications to Tax Increment Financing District or the Taac Increment
Financing Plan have been made as of the date hereof.
Section 17. Modificarions to Tax Increment Financine District.
In accordance with Minnesota Statutes, Section 469. 175, Subd. 4, any:
1. reduction or enlargement of the geograpiuc azea af the Tax Increment Financing
District;
2. increase in amount ofbonded indebtedness to be incurred, including a
determination to capitalize interest on debt if that determination was not a part of
the original plan, or to increase or decrease the amount of interest on the debt to
be capitalized;
3. increase in the portion of the captured net tax capacity to be retained by the HRA;
4. increase in total estimated ta7c increment expendifures; or
5. designation of additional property to be acquired by the III2A,
shall be approved upon notice and after the discussion, public hearing and fmdings required for
approval of the original Tax Increment Financing Plan.
The geographic azea of the Tax Increment Pinancing District may be reduced, but shatl not be
enlazged after five yeazs following the date of certificarion of the original net tax capacity by the
1525678v2
�� �i3
County Auditor. The requirements of this pazagraph 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 tvc
capacity of the parcel(s) elirninated from the Tas Increment Financing District equa(s or exceeds
the net tax capacity of those pazcel(s) in the Tas Increment Financing DisiricYs original net taY
capacity, or (B) the HRA agrees that, notwithsfanding _VIinnesota Statutes, Secfion 469. 177,
Subd. 1, the original net tas capacity will be reduced by no more than the current net tax capacity
of the garcel(s) eliinivated from the Tax Increment Financing District.
The HRA must notify the County Auditor of any modificafion that reduces or enlazges the
geographic azea of the Taac Increment Financing District or the Redevelopment Project Area.
Modifications �o Tas Increment Financing Dishict in tfie form of a budget modification or an
expansion of the boundaries wii_1_ he recorded in the Taac Lncre*_�:er_± Fin�.ncing P?an.
Section 18. Administrative Exnenses.
In accordance with Miimesota Statutes, Section 469.174, Subd. 14, and Minnesota
Statutes, Section 469.176, Subd. 3, administrative expenses means all expenditures of tbe fII2A,
�thPr rh�,:
amounts paid for the purchase of land or amounts paid to contraetors or others
providing materials and services, including azchitectural and engineering services,
directly connected with the physical development of the reai property in the
district;
2. relocatian benefits paid to or services provided for persons residing or businesses
located in the district; or
3. amounts used to pay inYerest on, fixud a reserve for, or sell at a discount bonds
issaed purs;:ant to P✓:innesota Statutes, Section 469.178.
Administraiive espenses also include amounts paid for services provided by bond
counsel, fiscal consultanYs, and planning or eeonomie development consultants. Ta�c increment
may be used to pay any authorized and documented administrafive expenses for the Tax
Increment Financing District up to but not to exceed 10 percent of the total tax inerement
expenditures authorized by this Tax Increment Financing Plan or the total tax increment
expenditures, whichever is less.
Pursuant to Mianesota Statutes, Section 469176, Subd. 4h, tas increments may be used
to pay far the county's actual administrative expenses incurred in connection with the Tax
Increment Financing District. The county may require payment of those expenses by February
15 of the yeaz following the year the expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 11, the county treasurer shall
deduct an amount equal to approxunately thirty-six hundredths of one percent (.36%) of any tax
increment distributed to the HRA and fhe county treasurer shall pay the amount deducted to the
state treasurer for deposit in the state general f¢nd to be appropriated to the State Auditor for the
cost of financial reporting of tas increment financing information and the cost of examining and
auditing aufhorities' use of t� inerement financing.
1525678VL
oy-l�3
Section 19. Limitation of Increment
Pursuant to Minnesota Statutes, Section 469. 176, Subd. I(a), no tax increment shaIl be
paid to the HRA for the Tazc Increment Financing District after three (3) yeazs from the date of
certification of the original net tax capacity value of the taxable property in the Ta�c Increment
Financing District by the County Auditor unless within the three (3) year period:
(1) bonds have been issued pursuant to Minnesota Statutes, Section
469. 178, or in aid of a project pursuant to any other law, except revenue bonds
issued pursuant to Miimesota Statutes, Sections 469.152 to 469.165, or
(2) the I�2 A has acquired property within the Tas Tncrement
Financing District, or
(3) the HRA has constructed or caused to be constructed public
improvements within the Tax Tncrement Financing District.
The tax increment pledged to the payment of bonds and interest thereon may be
discharged and may be terminated if suTficient funcis have been inevocably deposited in the debt
service fund or other escrow account held in trust for ail outstanding bonds to provide for the
paymenf of the bonds at mahuity or redemprion date.
Pursuant to Minnesota Statutes, Section 469.176, Subd. 6:
if after four yeazs from the date of cerkification of the original net tax capacity of
the tas increment fmaucing district pursuant to Minnesota Statutzs, Section
469.177, no demolition, rehabilitation or renovation of property or other site
preparation, including qualified improvement of a street ad} acent to a parcel but
not ins:a:l2ticn �f uri:ity service inclnding sewer or water systems, has been
commenced on a parcel located v✓ithin a tax increment financing district by the
authority or by the owner oi the parcei in accordanee with the tax increment
financing plan, no additionai tas increment may be taken from that pazcel and the
original net tas capacity of that parcel shall be excluded from the original net tax
capacity of the tas increment fmancing dish If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or renovation or
other site preparation on that pazcel including qualified improvement of a street
adj acent to that parcei, 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
cerEified by the commissioner of revenue and add it to the original net tax capacity
of the taac increment financing district. The county auditor must enfarce the
provisions of this subdivision. For purposes of this subdivision, quaIified
improvements of a street aze limited to (1) conshuction or opening of a new
street, (2) relocation of a street, and (3) substantial reconstruction or rebuitding of
an e�sting street.
t52567dv2
0�-��3
Section 20. Use of Tax Increment
The HRA hereby determines that it wi11 use 100 percent of the captured net taz capacity
of t�able property located in the Ta7c 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 Minuesota Statutes, Sections
469.001 to 469.047;
3. to pay for project costs as identified in the budget;
4. to fmance, or otherwise pay for other purposes as provided in MSnnesota Statutes,
Section 469.176, Subd. 4;
5. to pay pzincipal and interest on any loans, advances or other payments made to
the HRA or for the benefit of Redevelopment Project Area by the developer;
6. *o fina.nce or �the�wise gay pre^_�in*^s ar.3 oth�r costs fc: ir.s�.�ranc�, cr�?it
enhancement, or other security guaranteeing the payment when due ofprincipal
and iate;est ora tax incremeat bonds or boad; :ssued p�irsuaat to u�e T�
Increment Financing Plan or pursuant to Minnesota Statutes, Chapter 462C and
Minnesota Statutes, Sections 469.152 to 469165, or both; and
7. to accuxnulate or maintain a reserve securing the payment when due of the
principal and interest on the tax increment bonds or bonds issued pussuant to
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to
469.165, or both.
These revenues shall not be used to circumvent any levy Iimitations applicable to the
HRA nor for other puiuoses prohibited by Minnesota Statutes, Section 469.176, subd. 4.
Section 21. Notification of Prior Planned Imnrovements.
The HRA shail, after due and diligent search, accompany its request for certificarion to
the County Auditor or its no6ce of the Tax Increment Financing District enlazgement with a
listing of all properties within the Tas Increment Financing District or azea of enlargement for
which building permits have been issued during the eighteen {18) monfhs immediately preceding
approval of the Tas Increment Financing Plan by the municipality pursuant to Minnesota
Statutes, Section 469.175, Subd. 3. The County Auditqr shall increase the original value of the
Ta�c Increment Financing District by the value of improvements for which a building pernut was
issued.
Section 22. Excess Tax Increments
Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any year in which the tas
increment exceeds the amount necessary to pay the costs authorized by the P1an, including the
iszse�a�z
�� el3
amount necessary to cancel any tas levy as procided in �Sinnesota Statutes, Section 475. 61,
Subd. 3, the HRA shall use the excess amount to do any of the following:
1. prepay any outstanding bonds;
2. dischar�e the pledge of tax increment therefor;
3. pay into an escrow account dedicated to the payment of such bond; or
4. return the excess to the County Auditor for redistriburion to the respecrive tasing
jurisdictions in proportion to their local tax rates.
In addition, the HRA may, subject to the limita6ons set forth herein, choose to modify the
Plan in order to finance additional public costs in the Tax Increzznent Financing Dishict or
Redeveiopment Project Area
Section 23. Requirements fox AQreements with Developers.
'!'he ?HRRP. wit'.:e:�iew any pra�sal for p.^:vate deveIop:::ent Ya determine its conformar.ce
wit:: the Redevel�p��:�t D1an and .r�ti: appli�abl� m;:n;ci�al o:3in�,^aces and cod�s. T3 facilitate
fhis effort, the following documents may be requested for review and appraval: site pIan,
cons'uucuon, mecnanical, and eiectrical system drawings, iandscaping plan, grading and storm
drainage plan, signage system plan, and any other drawings or nazrative deemed necessary by the
City to demonstrate the conformance of the development with city plans and ordinances. The
HI2A may also use the agreements to address other issues related to the development.
Pursuant to Minnesota Stahztes, Secfion 469.176, Subd. 5, no more than 10 percent, by
acreage, of the property to be acquired in the Tax Increment Financing District as set forth in the
Taac Increment Financing Plan shall at any rime be owned by the HRA as a result of acquisition
with the proceeds of bands issued pursuant to Minnesota Statutes, Section 469. 178, without the
I�2A having, prior to acquisition in excess o: 10 percent of the acreage, concl•,zded an agreement
for the develapment or radevelopment of the property acquired and which provides recourse for
the HRA should the development or redevelopment not be compieted.
Section 24. Other Litriitations on the Use of Tax L`�crzment.
General L'zmitarions. All revenue dezived from taac incxement shall be used in
accordance with the Ta�c Inerement Financing Plan. The revenues shall be used to
frnance, or otherwise pay the capital and administrafion costs of the
Redevelopment Project Area pursuant to the Minnesota Statutes, Sections
469.124 to 4b9.134;
These revenues shall not be used to circumvent existing levy lixnit taw. No
revenues derived from tas increment shali be used for the acquisition,
construcdon, renovarion, operation or maintenance of a building to be used
pzimarily and regularly for conducring the business of a municipality, county,
school dish or any other local unit of government or the state or federal
government, or for a commons azea used as a public park, or a facility used for
tszsb�a�z 9
o� ie3
social, recreation or conference purposes. This provision shall not proIubit the
use of revenues derived from tas increments for the construction or renovation of
a parkino structute.
2. PooIin¢ Limitations. At least 75 percent of tas increments from the Taic
Increment Financing District must be expended on activities in the Tas Increment
Financing District or to pay bands, to the extenf 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 ta�c
increments may be expended, through a development fund or otherwise, on
acrivities outside of the Tas Increment Finaucing District except to pay, or secure
payn?ent of debt se*vice on credit enha�?ced bonds. For purposes of applying this
restriction, all admuristrative expenses must be treated as if they were solely for
activiries outside of the Tax Increment Financing District.
3. Five Year Limitafion on Commitment of Taac Increments. Tax increments derived
from the TaY Tncrement Financing District shall be deemed to have satisfied the
75 pzrcent test sat fo��h i� parag�aph (2) abova on:-y i: U:e fi-re yeaz:u;e set fo:" i
in Miimesota Stahxtes, SecAon 469. 1763, Subd. 3, has been satisfied; and
beginning with the sixth yeaz foilowing certification of the Tax Increment
Financing District, 75 oercent of said tax increments that remain after
expenditures permitted under said five year rule must be used oniy to pay
previously commihnent expenditures or credit enhanced bonds as more fully set
forth in Minnesata Statutes, Section 469.1763, Subd. 5.
4. Exuenditures Outside District. The Authority hereby elects to spend an additional
ten percent of the tas increments on activifies located outside the Ta1c Increment
District as pemutted by Minnesota StatuYes, Section 469.1763, subd. 2(d)
provided that the eacpenditures meet the following requirements:
(1) they are used exclusively to assist housing that meets the
requirements for a qualified low-income building as defined in Section 42 of #he
Intemal Revenue Code of 1486, as amended (the "Code"};
(2) they do not exceed the qualified basis of housing as defined under
Section 42(c) of the Code less the amount of any credit allowed under Section 42
of the Code, and
(3) they are used to (i) acquire and prepare the site for housing, (ii)
acquire, construct or rehabilitate the hausing or (iii) make public nnprovements
directly related to the housing.
Secrion 25. Countv Road Costs.
Pursuant to Minnesota Statutes, Section 469. I75, Subd. La, the county board may
require the HRS 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 counfy, substantially
increase the use of county roads requiruig construction of road improvements or other road costs
L525678v2
1Q
o� /13
and if the road improvements aze not scheduled within the next five years under a capitai
improvement plan or other county plan.
In the opinion of the FiRA and consultants, the proposed development outlined in this
Plan will have fittle or no impact upon county roads. If the county elects to use increments to
improve county mads, it must notify the HRA witFrin thirty days of receipt of this Plan.
Secfion 26. Assessment Agreements.
Pursuant to Minnesota Statutes, Section 469. 177, Subd. 8, the HRA may enter into an
agreement in recordable form with the develaper of property wifhin the Tas Increment Financing
District which establishes a minimum market value of the iand an@ completed impiovements for
the duration of the Tax Increment Financing DistricY. The assessment agreement shall be
presented to the assessor who shall revizw the plans and specifications for the improvements
constructed, review the mazket value previously assigned to the land upon which the
improvements aze to be constructed and, so long as the mini,,,mn market value contained in the
assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, ffie
assessor may certify the minimum market value agreement.
Secrion 27. t�dmurisfration oi ihe 1 ax incremeni Financine Districr.
Administration of the Tax Increment Financing District wili be handled by the Execurive
Director of the HRA.
Section 28. Financial Reoortin�Requirements.
The HRA will comply with all reporting requirements of Minnesota Statutes, Section
469.175, Subd. 5, 6 and 6a.
� szse; s�z 1 I
d �--��3
EXHIBIT A
TAX :NCREM'cNT FINANCING ?L4N BL'DGET
Nzmeoi0istnct: Kmh;MCOil�rqect
Type of ��s;rict: ReCevelo�ment DisUic[
D:. a[ic�r cf Distr.ct 25 years Fcllvxing tst cGlec[ion
(1) Indutles shortterm borrowings antl Poture fakerout refuntlmgs.
(2) Net of State Auditor Deduction.
(3) Includes 3 bond issues.
(4) Indudes 6 issues, 3 shat-tertn roll-overs and 31ong-term refuntlings.
(5) Part of total Koch MobJ prqec[, but not TIF Lantl Assembly bonds are not TIF Bonds.
Prepared by Spnn95[etl Incorporatetl (t/512004) Page 1 Scenano 1 01-02-04.xIST1 Butlget
d� !/3
LTXHIBIT B
Assumptions Repart
Cityo(51 Paul PED,Min�remta
OevelapmeM ofKOChlMObil Site
TIFASSemptians
Typ¢ dTax fncremml Frnanang Dismn
Manmum Du2um o(TI' q5U¢t
cenincm�onaoy�es oa�
�eceNfca4m Oa�e
Base EzLma�eEMarke�va�ue
0::5.^s:4e!Tae^apac2�
R¢CPV90pIne��
is ye�z from i.� maemem
oaro';G�
�20vS RSVearsotNrvcnen�)
XiWl2CC6
55 iq B00
SS¢.PfiT
A55e55menOColledion Tea�
2a06/ZGO� 2GU�211G6 20W'2W� 2GpJA 3 OO6YM 9�2' 9 /2'J' 2�2 /1
TofaIEMV�PpaCta 0 $0 S15.S165C0 52E210.OW SY92f0000 SR8.21q0p0 SID210,000 528.310.000 828.210,000 Q8210,OW g2@210,000
TptalFlJN�Phue1E U 0 3i8<)B'< D,193JJd 30060.00C 30.060.ObJ ]O.Ofi0.000 bpB0,W0 30.060.00� d0,060.000 30,O600W
Tota1EMV-Ppaze2 0 0 0 Stp0p00 H,CSI��IJ Pd20J,p0� 232CU000 R9200.000 28200.000 28.000.000 2830q000
TotaIENV-P�ase] 0 0 � 0 2001d9>J i513a00L 658IIU]]V d>a295R3 9n�p�25p W^9Udi50 'if1900M
TolalES4matNMatl:etValue SS,t>3,B00 55,P3000 518.)OOR62 555,903.J33 592,953.115 if2].605.000 5152.350.T�6 StI1999,583 5�85.591250 5196.3I8.950 52026CN.000
TNiG-Phaula 0 0 Si8,0]0 Dy1:G0 S28YA00 SR%]600 S26I,Op0 428IA00 528i,400 528],apJ 520)A00
TNTC-Ph25efb 6 0 l3.IW $2J ]A2 �p;1,]00 3Q{.]00 343.]00 3�},J00 J0.5.]�0 3p3.]00 ao�,�oo
TNT0.PFase2 0 0 0 SaM10 ta69+ 2uI0C0 2US000 2ffi3O00 282,40� 282006 0924W
TNTG-Fpase] U 0 0 � 206J0> atun4 GJ%ZG dE93i: fp05p4 i�91pf fPS.ryy
ioWINMTaeLapaury $i8,&5) 55835] 5�90q6 SSfi6,t42 $943.6�8 5�35].3t9 51.505,9P6 51,>'02,<15 518]0391 51,986206 52M9.019
Ba5¢InOa�qn FacN/ NH
Lecal iasCapaary Rate �ti fi i3�m P.mose0 2003I200i
Fxal�¢OaMrsCONnEUI�onFmmTlFOUiIG OW00%
Mm� :raUwRety�9eP�cen[(ma mum=lp•h) t0U(Y+
POOIin9Pert¢�1 p JOK.
Gtyl2eRaR�Onlytltoql�EHpITI� NA
iRpaREby.50mg5uetlNCwpOra�rAlpnn�eEOni152006d[203PM) pdel
9 TL Scenano t Ot-02-04 xls
O� ��3
Total Projecfed Tax Increment Report
City of SL PaW PED, Minnrsota
Development ot KecWMObilSite
TIF Assumptions
INFL4710N: 200%
Less:
nnnual Tdai Onginal
Periotl NetTae Ne�Tax
EnEing Capaciry Capacity
L) f27 (31
tJJ3t/Oa 58.85) o8.&i]
12131105 58,851 58 &5]
�vairos se.asr sa.ss�
t2131/0] 190.i]6 58,89
t&3VaB SGfi.162 58.85]
i?f31/09 943,6]8 SB,SSP
12f31/10 1 29],219 58,&ST
12(3ll11 1,545.92fi 58,85]
'2/3ttl2 f 162,415 58,89
1?J3Vt3 1,9I8,331 58.85]
12131H4 1.98G2C6 SB.851
1?/31H5 2,Od9.019 58.851
�zrvis z,aas,sss sa,es�
121311i7 2,13t]98 58.859
12/3V18 2.1>4.433 58,89
12/311i9 22�).921 58.&5>
12/3V20 2,2622]9 58,85]
1213121 2,3W,524 58,85]
12l3122 2.353.6]4 58,851
52131121 2,6W,]6t 58,35'I
tYtl24 2,436.Ifi1 58.85I
1?J3V25 2.4W.i'a6 52.BS1
12131126 2,54].690 58,85>
1?/3112] 2,598,643 58,851
t2131128 2,650,615 58,85]
t2131f29 2]03.621 SB,85]
11/31130 2.i9.659 58.&5➢
1213113� 2.812,852 58,85]
12135132 2,859.1� 2.SG9,563
less: ReWinetl Times.
Fiscal CaDiut� Ta%
DisP.0 NMTaz CaO��ly
O.00OOb Caoacn Rare
0 121
0 121
a izi
131.319 12t
SO1295 121
884,821 121
123H,362 IIi
1.48],069 12t
1,]03,558 121
1.819.a]4 t2i
1 921.349 t21
1.990,1b2 121
2.031.1C2 121
z.arz.sai in
2,115,5]6 t21
2.i59.Ofi4 121
2,203.422 12�
2.2d8,6fi] 12i
2.294.8�T 121
2.361.590 t25
2.389.906 121
2.538.3I3 12:
2.a88,e33 12t
2,539.]86 121
2,59L>58 t21
2.66d770 121
2.698.842 121
2]53.995 121
0 125
Less. Less.
Annual StateAUO Atlmin Armual
Gmss Ta[ Oetluclim Retainage NetTax
Increment 0360% tO.W% Incre'nml
J 8 f91 (101
0� 0 0 0
al o 0 0
0 o a o
159.964 - 5]6 15.539 id3,a45
6t].939 2.225 61.5]t 55Y.t43
1,aTl,d2] 3b80 �OP395 9fi6}52
i,5�e,48fi 5,431 150,306 1,3$2,]39
1.611.444 6.521 180.492 L'o24.A3t
2.OP5.155 ].4]1 206768 1.860.916
?2t6,356 ],9]9 220,838 1,981.539
2,3C�>62 BR52 233,93t 2,105.3/9
2.6242]6 8.)2l 2at,555 2,i13,994
2,4]4,195 8,90] 2a6,529 2,218)59
2,525.112 9,090 251,602 2266,620
2,5]],Od) 9,2)] 256,]]9 2,3�0,993
2,630.021 9,468 262,055 2,353,a98
2.694.0.56 9.fi63 26].439 2.406.95Z
2�39,169 9,eo1 2]2,931 2p56.3�]
1795,385 10.063 2>3,532 2,506,]90
2,852,12fi t0,2)0 284,2n6 2.SSd210
2.91121G t0,C80 �O.W3 2.810.66t
i.910.812 10.E95 295.019 2.66C.159
3.431722 10,914 302.081 2]1872]
3.093.)90 H,138 308,265 2,]]4,38�
3.t5].�88 11.3fi6 319.5]3 2.83t.159
3,221,6)a 1t,598 32t.008 2.869.068
i,22],SaO 11,935 32],511 2,969,134
3,35<,126 12.OTI 33a,265 3,0�3,382
9 0 0 0
Sfi0.545.a52 S2t).961 $6.032.]6� 354.294,828
Less.
Cwnly
Atlmin
0
0
0
2,100
2.100
2.tpp
2.100
2,100
2,10p
z+ao
Z.i00
z.iao
2,ID0
z.iaa
? t00
2,t00
2dC0
2.tOD
2.100
2.1GD
2.t00
2.?M
2.140
2,:00
2,100
2d00
2.100
2.100
D
$52,500
Mnual
Net
0
0
�a ,349
552,043
9fi4.45�
1,350,669
1,622.331
1.856,816
1,985,a39
2.103.2]9
z.m.esa
2,2t6,659
z,zaz,azo
2,308,893
2.356.398
2,904.852
2,654,2)T
2,SOC,690
2.556,110
2,fi08,561
2.c"_2.'JS°
2]16.62�
2.)]3281
2,B29,0.59
T.896,9fi8
2.90fi.036
3.006,282
P.V
Annual
NN Rev To
0
0
10l$e'
38T.A54
62TS�A
9i3,]]2
905.05/
960,112
969.611
931.056
asosss
8at.62�
]95.33i
]51,98
110226
611.i3]
634�95
599,2�9
566,280
535,092
SC5.5!?
411.]fi0
C51 E34
s26.555
ap3.043
380.823
359.825
0
515,683.2fifi
PreparetlbySpnngstetllrcorporztetl(pnn:etlon1l512004a(203PM) Page2 TI-SCenano101-02-06x1s
��-�!3
EXHIBIT C
� Estimated Impacf on Other Taxing Jurisdictions Report �
City ot St. Paul PED, Minnesota
�evelopment of KocWMobil Site
TIF Assumptions
W iNOU[
Pmiec[ or TIF pisMC[ With Proiect a�k TIF DisUict
Pr000setl ProlectCtl Hypothe6cal
20032�4 2CW/2COC Re;a;neC Nev: Hypot^.eLCal u�c!:�e!,cx! TzxGe.^.a:�:✓_'
Tarable 2003/2006 Taaable CapNretl Tarable Adrys[etl Decreasein byRetametl
Taxing NetTax �ocal Netiav NetTax NetTU Lo<al Wcal Capwretl
J�nstlic.ion Ca acM1 1 Tax Rate Ga acR t Ca aai - Ca acrt Tax Rate ' Tax R9te ' N T C. '
Gtya'SLPauI 144,9N3G�ti 343"a2% 144,983.696 S2,153.`)AS 141,137,691 34202'/0 0.650'/0 94i,530
RamseyCOUnly 327.9GS.OG2 49.15]% 321.965.062 2,I53,995 330,]19.C5� ae.]48% OA�9 0 1,342.508
ISDkG25 t44.984,313 3�181% 144,98a,3'13 2.]53.995 14],138,308 31.189°0 0.592% 855.932
Otnar(2) — 5.023% — 2,]53,995 -- 6.023% -- -�-
Totals 121.813% 120162% t651%
' St2tement'I: If Ne pro�ectetl Refainetl CapNretl Ne[ Tax Capacily oi �he tlF District was nypofha6caily avanaole lo eacM1 of
the taxmg lurisdctions above, the resuII vrouitl be a lower locai tax a�e (see Hypo�e0cal Adjus[ed iax Rate above)
which woultl protluce ihe same amounf o( taxes f0� each t2xing �uristlicUOn. In such a case, U�e tatal local �ax rate
woultl decrease by 1.651 %(see Hypothetrai pecrease m Local Tax Rate above) The hypothet¢al tax that ihe
Rxia�nxG CapW*� Na. Tax Capacdy of ine Tf` CtsGrot wouid gerxrata s aisc sho.vn aSwe.
Statement 2: Since ihe prqectetl Relained CapNretl Net Tax Capaaly of Ihe TIF 05tnd is not available lo lhe!vin3 junstlictbns,
ihen fiere k fro impact on taxes kmed or bcal tax 2tes
(i) Tarab�anetiaxcepaaly=tolzilne�[azaDaciry-cepWrntlTIF-irscaltlispantyconlnbuhon
(2) The;mpact on these tanng �urisCicirons is negLgible smce they reoresent only A 96 � of Ihe robl tax rate-
Prepared by Spnngs[etl incarpoatetl (pnntetl on 1;52006 a[2:55 PM) Page 3 TI - 5cenano 1 01-02-04x1s
a�f-��3
� .��: �
?vlap of Tax Increment Financing District
iszs67svz D-1
Council File # (��
Resolution #
Green Sheet # ,��_
\
1
2
3
4
5
6
7
8
9
10
I1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
AND
ITY
RESOLUTION
41NT PAUL, MINNESOTA
Committee: Date
RESOLUTION APPROVING THE
�SLI5HMENT OF THE KOCH MOBIL
INCREMENT FINANCING DISTRICT
TAX INCREMENT FINANCING PLAN THEREFOR
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
"HRA") has heretofore, with the appro,val of the City Council of the City of Saint Paul, Minnesota (the
"City"), adopted the Koch Mobil Redevelopment Plan for the Koch Mobil Redevelopment Project Area
(the "Project"), pursuant to Minnesota Statutes, Sections 469.001 to 469.047, both inclusive; and
WHEREAS, said Redevelopment Plan contain's`an identification of need and statement of objectives
and program of the I3RA far carrying out of a redeveTopment project, including property to be acquired,
public improvements to be provided, development and `Yedevelopment to occur, and sources of revenue
to pay redevelopment costs of the Proj ect; and �
WHEREAS, the HRA has proposed the creation within the P�oject Area of the Koch Mobil
Redevelopment Tax Increment Financing District as a redevelopmec�t tax increment financing district
under Minnesota Statutes, Section 469.174, Subdivision 10 (the "Tax �ncrement Financing DistricY'),
and the adoption of a Tax Increment Financing Plan therefor, all pursuai�t„to and in accordance with
Minnesota Statutes, Section 469.174 through 469.1812 (the "Tax Increme��AcY'); and
WHEREAS, the HRA has performed all actions required by law to be perfornied prior to the creation
of the Taac Increment Financing District and adoption of the Tax Increment Plan ther'�for, including, but
not limited to, notificarion of the Ramsey County Commissioner representing the area of the County in
which the Tax Increment Financing District is located, and delivering a copy of the Tax I�`itprement
Financing Plan to Ramsey County and Independent School District Number 625, which have. taacing
jurisdiction over the property to be included in the Tax Increment District; and
WHEREAS, on this date, the City Council conducted a public hearing on the Taac Increment
Financing Plan, after published notice thereof; and
L��
o�i- tt3
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
WI�REAS, at said public hearing the City Council heard tesrimony from all interested parties on
the Tas Increment Financing Plan.
NOW THEREFORE BE IT RESOLVED BY the City of Saint Paul, Minnesota as follows:
�,
1. Findings for the Creation of the Koch Mobil Tas Increment Financing Dishict and
of Tax Increment Financing Plan therefor.
1.01 'F�ie City Council hereby finds that the creation of the Tax Increment Financing District
and adoption of the�as Increment Plan therefor, are intended and, in the judgment of the City Council,
its effect will be, to catrry out the objectives of the Redevelopment Plan and to create an impetus for the
cleazance of blighted st�n{ctures and the construction of owner occupied and rental housing facilities, and
will otherwise promote cer�ain public purposes and accomplish certain objectives as specified in the
Redevelopment Plan and Tar�Increment Financing Plan.
1.02 The City Council
qualifies as a "redevelopment
reasons:
finds that Redevelopment Taac Increment �inancing District
ithin the meaning of the Taac Increment Act for the following
The Taac Increment Financing D�stric
469.174, Subdivision 10(a)(1) and (3), a��ec
project or portions of a project within whic$�
reasonably distributed throughout the Distric
70% of the area of the portion of the Dishict
is, pursuant to Minnesota Statutes, Section
district" because it consists of a
or more of the following conditions,
ist: (a) parcels consisting of at least
"Substandard Building Paxcels") are
occupied by buildings, sireets, utiliries, paued or vel parking lots, or other similar
structures; and (b) more than 50% of the buildings n including outbuildings, located
within the Substandard Building Parcels of Tax Increm t Financing District are
"structurally substandard" (within the meaning of Minnes ta Statutes, Section 469.174,
Subdivision 10(b)) to a degree requiring substantial renovatie�n or clearance. The
buildings are structurally substandard because they contain de�ots in structural elements
or a combination of deficiencies in essential utilities and facilities, light and ventilation,
fire protection including adequate egress, layout and conditaon of in nor partitions, or
similar factors, which defects or deficiencies are of sufficient total si 'ficance to justify
substantial renovation or clearance. In addition, the costs of bringing th structurally
substandard buildings into compliance with building codes applicable to�n ,w� buildings
would exceed 15% of the cost of constnxcting new structures of the same siz and type on
the sites. The "structurally substandard" buildings are not in compliance with e
building code applicable to new buildings, and the costs of modifying such buildi s to
satisfy the building code is more than 15 percent of the cost of constructing a new �
shucture of the same square footage and type on the site. t
The reasons and support facts for these determinations are set forth in a report
dated November 24, 2003 prepared by Short, Elliot, and Hendrickson, Inc., a copy of
which is on file with the Executive Director of the HRA, and which is incorporated herein
by reference in its entirety and the resolutions adopted by the City (CC #03-1081) and the
HRA (HI2A #03-12110-9) with respect to substandard buildings that were removed prior
to adoption of this resolution.
o�-���
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
The remaining property to be included in the Tas Increment District (the °Tank
Farm Parcels") consists of property whose immediate previous use was for tank facilities,
as defined in Minnesota Statutes, Secrion ll�C.02, subd. 1 S, and such tank facilities were
reasonably distributed throughout the Tank Farm Parcels and (a) had a capacity of mare
thair�1,000,000 gallons, (b) were located adjacent to rail facilities, and (c) have been
remoded or are unused, undemsed, inappropriately used, or infrequently used.
Th�reasons and supporting facts for these determinations are set forth in a letter
dated Noveii�ber 10, 2003 prepared by Peer Environmental, a copy of which is on file
with the ExecuYive D'uector of the HRA and which is incorporated herein by reference in
its entirety. \,
The City
(a) The City
the City Council, would
fareseeable future and, t
specific basis for such fi
hereby makes the following additional findings:
mcil further finds that the proposed development, in the opinion of
occur solely through private investment within the reasonably
fore, the use of tax increment financing is deemed necessary. The
The property on which the�development will occur would not be developed in the
reasonably foreseeable fixtu're because it has fragmented ownership, contains
several blighted buildings, ancl,the property is polluted with hazardous substances.
�
(b) For purposes of compliance with Minnesota Statutes, Section 469.175,
Subdivision 3(2), the City Council hereby �inds that the increased market value of the property to
be developed within the Koch Mobil Tax Inc�ement Financing District that could reasonably be
expected to occur without the use of tax increment financing is less than the increased mazket
value estimated to result from the proposed deve pment (i.e., $197,000,000) after subtracting
the present value of the projected taac increments f the maacimum duration of the Koch Mobil
Tax Increment Financing District (i.e., $15,683,266). The current market value of the property in
the Tax Increment Financing District is approximately�5,000,000, and with taac increment
financing the market value of the property will increase �$197,000,000 to approximately
$202,000,000. In making these findings, the City Council }�s noted that the property has not
been developed for many years and would likely remain so if� increment financing is not
available. Thus, the use oftax increment financing will be a p�tive net gain to the City, the
School District, and the County, and the taac increment assistance c�pes not exceed the benefit
which will be derived there&om. ��,
1.03 The provisions of this Section 1 are hereby incorporated by reference into and made a part
of the TaY Increment Financing Plan. A copy of the Tax Increment Financing Plan�is attached hereto as
Exhibit A and is incorporated herein by reference in its entirety. ���
Section 2. Creation of the Koch Mobil Tax Increment Financing District and Approval of the TaY
Increment Financing Plan therefor.
t�-t � u�
138 �� 2.01 The creation of the Koch Mobil TaY Increment Financing District and the Tas Increment
139 Fiiiancing Plan therefor are hereby approved.
140 \
141 `
142 2.02 The staff of the HRA and the HItA's advisors and legal counsel are authorized and
143 directed to �Zroceed with the implementation of the Taz Increment Financing District and the Tas
144 Increment Fuiancing Plan and for this purpose to negotiate, draft, prepare and present to the Board of
145 Commissionersbf the IIRA for its consideration all fiu plans, resolutions, documents and contracts
146 necessary for thispurpose.
\.
�
`,
',.
`'�
.,
Reguested by\Department of:
Adoption Certified by Council Secretary
Approved by Financial
Form Approved by Ci
Approved by Mayor: Date .
Approved by Mayorf Submission
Adopted by Council: Date