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07-869Council File # (/� Presented by Referred To Green Sheet # �3 ��l RESOLUTION CITY OF SAINT PAUL, MINNESOTA �j� Committee Date 1 RESOLUTION ADOPTING THE CREATION OF THE GRIFFIN 2 REDEVELOPMENT TAX INCREMENT DISTRICT AND THE 3 HAZARDOUS SUBSTANCE SUBDISTRICT AND THE ADOPTION OF THE 4 TAX INCREMENT FINANCING PLAN FOR THE DISTRICT 6 BE IT RESOLVED by the City Council (the "Council") ofthe City of Saint Paul, Minnesota 7 (the "City"), as follows: 9 Section 1. Recitals 10 1 I 1.01. On May 24, 2005, the Port Authority of the City of Saint Paul (the "Port Authority") 12 established the Phalen Corridar Globe Extension Indushial Development District in the City of Saint 13 Paul. On August 28, 2007, the Port Authority approved the Tax Increment Financing Plan (the 14 "Plan") establishing the Griffin Redevelopment Tax Increment Financing District and Hazardous 15 Substance Subdistrict (the "DistricY'). It has been proposed that the City approve the District and the 16 relatec3 Plan; a11 pursuant to and in conformity with applicable law, including Minnesota Statutes, 17 Sections 469.090 through 4691081 and 469.174 through 469.179, all inclusive, as amended, all as 18 reflected in the Plan, and presented for the Council's consideration. 19 20 1.02. The Council has investigated the facts relating to the Plan. 21 22 1.03. The Port Authority has performed all actions required by law to be performed prior to 23 the adoption and approval of the proposed Plan, including, but not limited to, notification ofRamsey 24 County and School District #625 having taxing jurisdiction over the property to be included in the 25 District, and the holding of a pubic hearing upon published notice as required by law. 26 27 1.04. Certain written reports (the "Reports") relating to the Plan and to the activities 28 contemplated therein have heretofore been prepared by Port Authority staff and submitted to the 29 council and/or made a part of the City files and proceedings on the Plan. The Repor[s include data, 3o information and/ar substantiation constituting or relating to (1) the "studies and analyses" on why the 31 new District meets the so-called "but for" test and (2) the bases far the other findings and 32 determinations made in this resolution. The Council hereby confirms, ratifies and adopts the 33 Reports, which are hereby incorporated into and made as fully a part of this resolution to the same 3a extent as if set forth in full herein. 35 36 1.05. A notice of the hearing on the Plan at this meeting was published as required by 37 Minn. Stat. §469.175, Subdivision 3, and pursuant to such notice a public hearing has been held on 38 the creation of the District and adoption of the Plan. 39 40779.v1 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 �5 76 77 78 79 80 81 82 83 84 85 86 87 88 84 Section 2. Findines for the Adoption and Approval of the Plan. 6'1���� / 2.01. The Council hereby finds that the Plan, is intended and, in the judgnent of this Council, the effect of such actions will be, to provide an impetus for development in the public purpose and accomplish certain objectives as specified in the Plan, which is hereby incorporated herein. Section 3. Findin�s for the Establishment of the Gnffin Redevelopment Tas Increment Financina District. 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment districP' under Minnesota Statutes, Section 469.174, subdivision 10. 3.02. The Council fm•ther finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market 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 market value estimated to result from the proposed development after subtracting the present value of the projected taac increments for the maximum duration of the District permitted by the Plan, that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the Dish by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Hazardous Substance Subdistrict. 4.OL The Port Authority will undertake the removal and remediation of the soil in the District. Contaminants such as polynuclear aromatic hydrocarbons, Lead and mercury and diesel range organics will be addressed. These activities will eliminate areas of hazardous substance in the designated hazardous substances sites. Section 5. Apvroval and Adoption of the Plan. 5.01. The Plan, as presented to the Council on this date, including without limitation 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 Authority President. 5.02. The staff ofthe City, the City's advisors and legal counsel are authorized and directed to cooperate with the Port Authority with respect to the implementation of the Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03. The Auditor ofRamsey County is requested to certify the original net taac capacity of the District, as described in the Plan, and to certify in each year thereafter the amount by which the originai net tas capacity has increased or decreased; and the Port Authority is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the Distdct, for which building permits have been 40779.v1 90 91 92 93 94 95 96 97 98 99 100 lol 102 103 104 105 106 107 l08 issued during the 18 months immediately preceding the adoption of this resolution. �� ��GJ The motion for the adoption 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 a�ainst the same: Dated: September 19, 2007 / f � Mayor ATTEST: City Administrator 40779.vt Adopted: Yeas Nays Absent Benanav ;/ Bostrom ✓ Harris ,/ Helgen ;/ Lantry ,� Montgome rY ✓ Thune ✓ � d Adopted by Council: q/�/�,� Date � L Adoption Certified by Council Secretary B �� % l /�///J/�/ �.//.l,C�SO� Approved by Mayor: ate By: � � ��� d7��� Requested by Departrnent of. I'� �f�.�Y l'� f �K. � t sk�YYvf C� °`� � ������_-_ By: Form Approved by City Attorney B y�<" ' � ` � - �., �� �� Approved b ayor for Submission to Council By: � — �,�/`—" 40779.v1 � Green Sheet Green Sheet , DepartmenVoffice/council: ! Date Initiz� ; (�,4 -PortAuthority ,� 10.SEP-07 Green Sheet Green Sheet Green Sheet Green Sheet I ��� Green Sheet NO: 3043771 ' ConWc[ Person 8 Phone: Monte Hilleman 224-5686 � Must Be on Co cil Agenda by (Date �, 19-SEP-07 � � � �: Doa Type: RESOLUTION 'i E-DOCUment Required: Y � Uocument Contact: Robin Dixon Contact Phone: 2243686 ' ■�► Assign Number � For = Routing Order 7oial # of Signature Pages _(Ciip All Lowtions for Signature) 0 Rort Anihority f 1 Ylanuine&EconomicDevelonmra Depar[mentDirecror I 2 ,CStv Attornev I I 3 � avor's Office Mavor/ASSistant 4 Council I 5 Ciry Clerk GtiV Clerk I � Resolution adopdng the crearion of the Griffin Redevelopment Tas Increment Dishict and the Hazardous Substance Subdistdct, and the adoption of the Griffin Tax Increment Financing Plan. Planning Commission CIB Committee Civil Service Cortttniss�on 1. Has this person/firm ever worked under a contrad forthis department? Yes No 2. Has this personlfirm ever been a city empioyee? Yes No 3. Does this persoNfirm possess a skill not normally possessed by any curtent city employee? Yes No Explain all yes answers on separete sheet and atfach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): � The St. Paul PoR Authority and the City of St. Paul have been jointly working on the wmpletion of the redevelopment along the eastern end of the new Phalen Blvd. The project is proceeding as planned & it is now time to approve the tax increment finance district & plan for the Griffin Redevelopment site. AdvantageslfApproved: ' The Grff an site redevelopment will proceed as planned. Disativantages If Approved: None. Disadvantages If Not Approved: Griffin will not be redeveloped and the Eastside will not receive the benefit of over 137 jobs and new taY paying development along Phalen Blvd. Transadion: Funding Source: Financiai Information: (Explain) Activity Number: Cost/Revenue Budgeted: September 1p, 2007 1:23 PM Page 1 a����y EXIIjBIT A RESOLUTION # The reasons and facts supportin� the findings for the adoption ofthe Griffin Redevelopment Tas Increment Financing District (the "DistricY') and the hazardous substance subdistrict (the "HSS") therein, are as follows: Finding that the Ilistrict is a"redevelopment district. " The Dish is a redevelopment dishict because the property consists of vacate, unused, underused, inappropriately used or inadequately used rail yards, rail storage facilities or excessive or vacated railroad rights of way. This conclusion is supported by the fact that: (a) In 1896 the District was part of the Griffin Wheel Company, a rail car wheel manufacturer still based in Chicago. Griffin operated its plant in the District until the late 1950's, but closed and demolished its buildings by 1464. The Site has been vacant since 1964. (b) Title reports show that the District is burden by as many as five separate railroad tracks and related easements in favor of (i) Northem Pacific Railway Company, far purposes of using, maintaining, operating and removing railroad tracks, including the switch tracks and spur located thereon; and (ii) Chicago, Saint Paul, Minneapolis and Omaha Railway Company on certain switch tracks, for shipping purposes in connection with the operation of any business or industry located thereon. (c) Plat maps from 1908 through 1965 show the location of railroad s�ur tracks and rights-of-way. These rights-of-way have not been vacated but are unused. Unused raikoad trackage remains in the District yet today. 2. Finding that the proposed development, in the opinion of the Port Authority, would not reasonably be expected to occur soleZy 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 arse of tax increment financing would be Zess than the increase in the market value estimated to resultfrom theproposed development aftersubtracting the present vaZue of the projected tar increments for the maximum duration of the district permitted by the Plan. Private development of the District has not been possible for a variety of reason, including 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. Finding that the Griffzn Redevelopment Tax Increment Financing Districz conforrrzs to the general plan for the deveZopment or redevelopment of the municipality as n whole. 40779.vi A_ 1 6 �-�!� I The Phalen and Atlantic Financing Plan has been reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the City. 4. Finding that the establishment of the Griffn and AtZantic Redevelopment Tax Increment Fznancing District for will afford maximum opportunity, 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 93 net developable acres, or 392,040 square feet of land. It is anticipated that the development will result in ligiat industrial 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 1.5 jobs will be created per 1,000 square feet of conshuction. ao7�9.�� A_2 � 7 �'lv �i Resolution No. 4231 RESQLUTIQN OF TE� PORT AUTHORITY pF TF3E CITY OF SALNT PAi3L [GRIFFIN REDEVELOPMEIVT TAX II3CREMENT FINANCII�TG DISTRICT] WI�EREAS, on May 24, 2005 the Port Authority of the City of Saint Paul (the "Port Authorii}�� estabfished the Phalen Corridor Giobe Extension Industrial Development District in the City of Saint Paul; and WI Capital City Properties ("CCP"), a nonprofit affiliate of the Port Authority, has previously acquired approxunately 9.3 acres of 1and within such Industrial Development Dishict for purposes of remediation and redevelopment (the "Site"�; and WHEREAS, it is proposed that the Boazd of Commissioners of the Port Authority consider the establishment of the Site as the Griffin Redevelopment TaY Increment Financing Dishict (the "DistricY') and Hazazdous 5ubstance Subdistrict (the "HSS"), and authorize the tax increment financing plan related thereto (the "Plan"); and VJHEREAS, Port Authority management has prepared a budget for land acquisition, remediation, construction of infrastructure improvements and other development necessary to establish an business center in the District (the "Project"), and the sources of fitnds to be used to accomplish the same, all of which is set forth in the Plan; and �TdAEREAS, pursuant to tlie budget for the Project, it is anticipated that the Port Au#hority will make interfiiiid loans to the Project from EPA Revolving Loan Fund, and its Development Fund, as more specifically described herein and in the report provided to the Board at this meeting; and WHEREAS, the Port Authority hereby determines that there has been no significant development or redevelopment in the District and, in the opuuon of the Port Authority, the proposed development and redevelopment described in the Plan is not reasonably expected to occur solely through private investment within the reasonably foreseeabie future and, therefore, the use of t� increment financing is deemed necessary; and WFIEREAS, the Port Authority further finds, declares and determines that the Port Authority made the above findings and has set forth the reasons and snpporting facts for each detenuination in writing, attached hereto as E�ibit A; anfl WHEREAS, the Port Authority has performed a11 actions required by 1aw to be performed prior to the establishment of the District and the HSS, including, but not titnited to, nofificafion of Ramsey County and Schooi DistricY No. 625 (which have taxing jurisdiction ovex the property included in the District), and the holding of a public hearing; and 40640.vi WHEREAS, a notice of the hearing on the Plan is to be pnblishe@ as required by TvFinn, Stat. §469.175, Subdivision 3, and pursua,nt to such notice a public hearing will be held by fhe City Counczl on 5eptember 19, 2007 on the creation of the District and adoption of the Plan. NOW, TfiEREFORE, BE TT RESOLVED by the Boazd of Commissioners of the Port Authority of the City of Saint Paul as follows: i- 71xe Piau is hereby approved and adogted, and shall be placed on fi1e in tke office of the Authority. 2. Port Authority management, along with tl�e Port Autfiority's legal counse�, is hereby authorized to proceed with the implementation of the Ptan and for this pvrpose to negotiate and finalize all f uther plans, resalntions, documents and contracfs necessary for tlus purpose. 3. Port Authority management is herebp authorized to forward a copy of the Plan to the Raznsey County Auditor and the MinnesoYa Department of Revenue pursuaut to Miunesota Statutes, Sec&on 469.175, subd. 2. 4. The interfund loans to be made to the Project from the Port AutJiority's EPA Revolving Fund and Development Fund as described in the information presented to the Board at this meeting aze hereby approved, and Port Authority managemenx is hereby authorizeci to put in place promissory notes reflecting the terms of stzch loaus. Tke President of the Port Aufhorify is hereby authorized to execute any such promissory notes reflecting the interfund Ioans approved hereby. Adopted: August 28, 2007 PQRT AUTFiORITY OF TI� CITY OF SATNT PAUL .-"`._ By I ATTE T: Its Seeretazy 40640.v1 D 7���! BXHIBIT A RESOLUTION # �231 The reasons and facts supporting the findings for the adoption of the Griffin Redevelopment TaY Increment Financing District (the "DistricY') and the hazardous substauce subdistrict (the "HSS") thereia, aze as follows: l. Pinding that the District is a"redevelopment district. " The Disirict is a redevelopment disSrict because the properCy consists of vacate, unused, underused, inappropriately used or inadequately used rail yards, rail storage facilifies or �cessive or vacated railroad rights of way. This conclusion is supported by the fact that: (a) In 1896 the District was part of the Griffin Wheel Company, a rail car wheel manufacturer sti21 based in Chicago. Griffin operated its plant in the District until the late 1950's, but closed and demolished its buildings by 1964. The Site has been vacant since 1964. (b) Title reports show that the Dishict is hurden by as many as five separate raakoad tracks and related easements in fauar of (i) Northem Pacific Railway Company, for purposes of using, maintaiuing, operating and removing raikoad tracks, including the switch tracks and spur located thereon; and (ri) Chicago, Saint Paul, Minneapolis and Omaha Railway Company on certain switch tracks, for shipping purposes in connection with the operation of any business or indushy located thereon. {c) Plat maps from 1948 tlrrough 1965 show the location of railroad spur tracks and rights-of-way. These rights-of-way have not been vacated but are unused. Unused railroad trackage remains in the District yet today. 2. Finding that the proposed development, in the opinion of the Port Authority, woutd 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 rectsonably be expected to occur without the use of tax increment fznancing would be less tTxan the increase in the mar-ket value estimated to result from the proposed development aftes subtracting the present value of th.e projected ta� increments for the maximum duration of the district permitted by the plan. Private development of the Aistrict has not been possible for a variety of reason, including blighted property, unstable soil conditions and high pollution remediation costs. As a result, this project is feasible only through assistance, in part, from t� increment financing. 3. Finding thaf the Gr�n RedeveZopment Tax Increment Financing District conforms to the general plan for the deveZopment or redevelopment of the municipality as a whole. 40640.v] The Phalen and AYlantic Financing Plan has been reviewed by the Port Authority and has been found to conform to the general development and redevelopment plan of the Cify. 4. Finding that the establishment of the Griffin Redevelopment Tax Increment Financing District for wiZ1 afford marimum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the project by private enterprise. The Distzict will provide approximately 9.3 net developable acres, or 137,000 square feet of land. It is anticipated that the development will resuit in tight industrial space, but the Piau does not preclude the undertaking of other qualified development or redeveIopment activities. Based upon the Port Authority's expezience in other business centers, it is expected that approximately 1.5 jobs will be created per 1,000 square feet o£ construction. 40640.v1 SAINT' PAUL PORT AUTHORITY D �-a� � � .�• • ► TO: BOARD OF COMM(SSIONERS (Regular Meeting of August 28, 2007) DAT'E: August 22, 2007 FROM: SUBJECT: Monte M. Hillema Lorrie L. Louder Laurie J. Hansen Kenneth R. Johnson Final Approval - Globe Redevelopment Tax {ncrement Financing (TIF) Plan - Resolution No. 4230 and Finai Approval Griffin Redevelopment Tax Increment Financing (TIF) Plan - Resolution No. 423i Action Requested Final approval of the Globe Redevelopment Tax Increment Financing (TIF) Pian and the Gri�n TIF Plan, creation of the related tax increment financing districts and hazardous substance subdistricts, and approval of interfund loans. Make findings of fact related to past railroad usage within the Griffin District. Pubtic Purpose: The redevelopment of the former Giobe Building Materials site will create a minimum of 92 jobs using the Port Authority's one job per 1,000 square feet of building space criteria. The redevelopment of the former Gri�n Wheelworks site wifi create a minimum of 137 jobs using the Port Authoritys one }ob per 1,000 square feet criteria. These redevelopments will complement the Port Authority's Westrninster Junction Business Center and will provide employment opportunities for Saint Paul residents, especially East Side residents, and will generally eliminate blight and retum vacant unused land to productive use, Business Subsidv: N/A Backpround: In 1995, the Board of Commissioners approved the creation of the Phaien Corridor Industriaf Development District, which encompasses the former Globe Building Materials site and the former Griffin Wheetworks site. The Globe site, formerly known as the "Phalen-Atlantic Area", is now to be known as the Globe Redevelopment Tax Increment Financing District. The Gr+ifin site is to be known as the Griffin Redevelopment Tax Increment Financing District. At its March 2006 meeting, the Board of Gommissioners made statutory findings that the existing structure at the Globe site was substandard and should be demolished in Page2-Bcd. Memo GlobefGrifUn TfF h��[J/„ � v bU/ preparation for redeve{opment, including the creation of a related tax increment financing district. The Board of Commissioners also directed Port Authorify management to work toward the creafion of said related tax increment financing district. Statutory findings of substandard buiidings were also made by the Cify of Saint Paul in March, 2006. Subsequent to these findings, and as permitted by the applicable statutes, fhe Globe buiiding was demofished. Both the Port Authority and the City based their findings on a Short Elliof Hendrickson, inc. report, "Redevelopment Eligibility Assessment", dated January 20, 2006. In addition, fhe Port Authority was provided a legal opinion from Leonard, Street and Deinard, regarding "Phalen-Atlantic Area — Proposed Demolition of Globe Building", dated March 16, 2006. The Gri�n site is vacant land and contains no buildi�gs. Its history of ownership and disuse supports the creation of a redevelopment T!F district because the {and consists of "vacant, unused under used, inappropriately used, or infrequentfy used rail yards, rail storage facilities and vacated railroad rights-of-way." [Minn. Stat. Section 469.174, Subd. 10] Specifically: • The site was operated for a while as a foundry and clay-making operation, but by 1896 it was part of the Gri�n Wheel Company, a rail car wheel manufacturer still based in Chicago. Griffin operated its plant at the site untii the late 1950's, but closed and demolished its buildings by 1964. The site has been vacant since 1964. • Title reports (Exhibit B) show that the site is burdened by as many as five separate railroad tracks and retated easements in favor of (a) Northern Pacific Railway Company, for purposes of using, maintaining, operating and removing rai{road tracks, including the switch tracks and spur located thereon and (b) Chicago, Saint Paul, Minneapolis and Omaha Railway Company on certain switch tracks, for shipping purposes in connection with the operation of any business or industry located thereon. • Plat maps from 1908 through 1965 show the location of railroad spur tracks and rights-of-way (Exhibit C). These rights-of-way have not been vacated but are unused. Unused raiiroad trackage remains at the site yet today (Exhibit D). Please see the attached exhibits for further documentation, inciuding a legal opinion from Leonard, Street and Deinard, related to the qualification of this District as a redevelopment TIF district (Exhibit E). The redevelopment of these sites has been supported by several East Side neighborhood and business organizations. The main focus of these redevelopments is to create light industrial jobs at good wages for residents a�d the maximum tax base in the area. These redevelopments will create a minimum of 229 jobs using the Port Authority's minimum criteria of one job per 1,000 square feet of buiiding space. 40602.W2 Page38rd. Memo GlobelGriYnn TIF U� ��9 The $16,900,000 of estimated new construction at these sites wou�d not be expected to occur in the reasonably foreseeable future without the use of tax increment financing. No such development or redevelopment has taken place at fhese sites in recent years, with respect to Gri�n, more than 40 years. Further, po{lution found at the sites necessitates the creation of Hazardous Substance Subdistricts to he{p pay the cost of remediation. The Port Authority has developed a redevelopment finance plan for fhe Globe site and the Griffin site, which contain several different funding sources, including tax increment financing. The Port Authority intends to reimburse itself for funds advanced to each of these projects, pius interest at the fesser of the one-year treasury plus two percent or the maximum allowed rate under State Statutes. It is expected that the Port Authority will advance approximately $2,465,000 to the Globe project and approximately $4,400,000 to the Gri�n project, which inciudes amounts to be advanced to the associated project from the Port Authority's EPA Revolving Loan Fund of $1,000,000 and $1,400,000, respectively. Both of these plans are being reviewed by Ramsey County, the Saint Paul Public School District, and the City of Saint Paul. A City Council public hearing is scheduled for September 19, 2007 at 530pm. Both plans must be approved by the City Council. Also attached are spreadsheets entitled, "Construction Costs - Sources and Uses" and "Partiai TIF Recovery", for both projects (Exhibits F-I). The former shows the balance ofi funding for the construction costs associated with each project and the latter shows a breakdown of the Port Authority capturing only 50 percent of the future TIF increment for each project. Recommendation: Final approval of the G1obe Redevelopment Tax Increment Financing (TIF) Plan and the Gri�n TIF Plan, creation of the related tax increment financing districts and hazardous substance subdistricts, and approval of interfund loans. Make findings of fact related to past raiiroad usage within the Griffin District. Attachments: [Exhibit A— Memo from Monte Hilleman] [Exhibit B — Gri�n Title Reports] [Exhibit C — Plat Maps] [Exhibit D— Site Pictures of Trackage] (Exhibit E— Lega{ Opinion from LSD] [Exhibit F— Griffin Construction Costs — Sources/Uses] [Exhibit G— Griffin — Partial TIF Recovery] [Exhibit H— Globe Construction Costs — Sources/Uses] [Exhibit I— Globe Partial TIF Recovery] 40602.VL Ex�+zslT a d 7 8loy SAINT PAUL PORT AUTHORTl'Y .n�ro�rvDUn�r TO: �lLE Monte M. Hiileman � DATE: August9,2007 FROM: SIIBJECT: Past Railraad Usage at Pormer Griffin Wheelworks Site as Related to TIF The Port Anthority's nonprofit affiliate, CapiYaI City Properties ("CCP") has acc�uired land in Saint Paul commonly known as the Griffin'Wheelworks Site (the "Site") for development as a business pazk and has asked the Port Authority to create a redevelopment district under the statute menfioned above in order to obtain a 25 year period to collect tax increments for its use in the payment of at least a portion of the remediation and redevelopmenf costs that it will incur. The Port Autiaority proposes to create a redevelopment tax increment financing district for the az'ea commonly known as the "Griffin WheeIworks Site" (the "Property"}. The Property consists of approximately 9.3 acres of Iattd in the Dayton's Bluff neighborhood, and is generally located south of Phalen Boulevard, and is bounded by �tlantic Street to the west, 3ohnson Parkway to the east, Cenhal Pacific rail tracks to the south, and Phalen Boulevazd to the north. Because the Property is unimproved at this paint and time, a redevelopment talc increment district can only be created if it is determined that the properiy consists of "vacant, unused, under used, inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated rights-of-way." [Minn. Sfat. §469.174, Subd. 10] I believe that the Property meets this requirement, based on the following facts: The Site was operated for a while as a foundry and clay-makino aperation, but by 1896 iC was part of the Cmffin Wheel Company, a rail caz wheel manufacturer srill based in Chicago. Griffin operated' its plant at the Site until the late 195Q's, but closed and demolished its buildings by 1964. The Site has been vacant since 2964. Title reports (Exhibit A} show that the Site is burdened by as many as five sepazate railroad tracks and related easements in favor of (a} Northem Pacific RaiIway Company, for purposes of using, maintaining, operating and removing railroad tracks, incIuding the switch tracks and spur located tbereon and (b) Chicago, Saint Paul, Miim.eapolis and Omaha Railway Company on certain switch tracks, for shipping pluposes in connection with the operation of any busin'ess or indusky located thereon. • P1ai maps from 19�& tluough 1965 show the Iocation of railroad spur tracks and rights-of-way (E�ibit B). These rights-of-way have not been vacated but are unused. Unused raikoad trackage remains at the Site yet today (see pictures at ExhibiE C). 31034.'I. - o �-8l� � EXHIBIT B � 1-a:��America CctmmrnomTveatth Port Authority of the City of SainE Pau1 Chuck Derscheid 345 St. peter Street 19D0 Landmark Towers St. Pau(, MN 55102-1661 Re; Or@er No.: 060544 Buyer/Bprrower(s): Port quthority of St. Pau1 Seller(s): Lang Real Estate Acquisitions, LLC and 5teiner Reaf Estate Acquisitions, LLC Addendum to Report of Ownership and Encumbrances Fie No. 050453 prepared Octaber 12, 2005. To: Charles perscheid, Port Author(ty of the CtYy ofi Saint Paul From: Biil Kannedy, t„ epdpmerica/Commonweafth Land 7itle Insurance Company Re: Raiiroad ownership af the Old Griffin Wheei Company site. Dated: May 17, 2046 A search af Ramsey Courtty records from patent forward does not disciose fee title ownership by arty raiiroad entity in Che Old Griffjn Wheel Company site, as described in Repor� of Ownership and Encumbrances File No, Q50453. �mmortweaith land TitFe Znsurance Company 4Q0 Slbiey Street, 255 Park Square Cpurt, Saint Paui, MN 551�3 Letter Phone: 651-22�-g571 Faz: 651-2Z7-S708 r a �.��� Cammonweaith l.and Tit[e Znsurance C�mpany REPORT QF RECORD OWIYEiZSHIP AND ENCUMBRAPICES Legal �escription: See Exh[bit A attached hereto. owea r�o.: asoass Commonweaith Land Title insurance Company does fiereby certify that as of the 7th day of March, 2005, at 8:06 A.M., the records in the offlces of the County Recorder and Registrar oF Tities in and for Ramsey County, Minnesota disclose as grantee fn the last recorded wnveyance to the above captioned property by quit Claim Deeds recorded on September 10, 1999, as Document Nos.. 1573502 and 1573503 (T) and on October 26, 1999, as Documant Nos. 32611Z5 and 3281126 (A), the followtrtg: Lang Real EsLate Acquis'sEions, L�C, a MEttnesota Ifmited Ilabi)ity company, as to an undivlded 73.264% interest, by Certiftcate No. SI1442 and Stefner Real Estate Acquisitions, LLG, a Minnesata Ilmited Iiabillty company, as to an undiv[ded 25.736% (nterest, by Certificate No. 511443 . Enaumbrances: The above captionstl property appears to be subjecC to the fottowing encum6rences; • As to Tract q: Agreement dated May 1, 1968, filed of record May 14, 1908, (n Book 60 M,R., �age 78. • Rs to Tract A: Easement contained in Warranty peed daYed May 14, 1448, F(ed of record May 15, SS08, fn Book 541 of Deeds, page 180. • As to 7ract A: Rlght and easement of Che Narthern Pacific Raifway Company, a corporetion, to enter upon the property described for the purposes oP using, maintainVng, operating and removing said raliroad tracks, incEUdittg the switch tracks and spur as now IocaYed thereon. (Shown as a recttal on the Certif(cates af'titie.) • As Yo Tract A: EasemenC and right of way to the Griffin Wheei Company, a corporat[on, and Ets successprs and assigrts, for sh[pp3ng purposes, to access to the tracks af the ChECago, St. Paul, Minneapofis and Omaha Raliway Company and to fihe Nortfiern Pactfic Railway Cornpany on the switch tracks now located on the property, but not for storing cars. . {Shown as a recStat on the Certiflcates of 7itle.) • As to Parcefs 2 and 3 of Tiact A: Public easement €ar highway purposes !n said Phalen 5treet and StAlwater Avenue. (Shown as a recttal on the CertificaEes o4Title.} ' • A5 to Tract A: Easement In favor of tha Chicago, 5t. Paul, M(nneapolis and Omaha RaiSway Company on said switch tracks, as now located thereon, for shlpping purposes in cosenection w{th khe operation oF any business or Industry located thereon. (Shown as a reci�al on the Certiflcates of Title.) Ownership and Encumbrance Report Page 1 oF 6 � � �7-S1�9 OrtierNO.: p5pq� As iro Parcei A: . Atl minera!s and m{r,esaf rights reserved to the SYate of Minnesota in trust for the Caxing districts concerrted, Combination Mortgage, Securi'ry Agreement and Fixture Financing Statefne�t dated as oF Decemher 22, 1988, frled of recrord January 13, 1989, as Document No..887256 (T) and �t�etl of record January 18, 1989, as 6ocument No. 2477101 (A}, executed by Lague Enterprises, Inc„ a Minnesata corporation, to Norwest Leasing,Inc., a Minnesota corporation,irt Ehe original principa! amount of $5,927,SOO,Op, Assigrted to Norwest Financiai Leasing, Ine., an Iowa corporation by Ass(gnment of Morkgage and Assignment of Rents and Leases dated December Z9, 1489, flied of record September 6, 19340, as Document No. 930978 ('i? and itfed of rernrd September i9, 1490, as Document No. 2563497 (A), Note: The ebove Ass)gnment does not appear on the current Certtficate5 oE Tftte. Note: The above Mortgage was released in Abstract records only by Document No. 2824031. Rssignment of Rents and Leases dated as of December 22, 1988, fifed of record 3anuary 13, 1989, as Document No. 867257 (Tj and flled of record January 18, 1969, as Document 1Vo. 2477102 (A), by and between Lague Enterprise es, Inc., a Minnesota corpotatian, and Norwest �easing,Inc„ a Minnesata corparatton. Assigned to Nanr.rest FEnanc{al Leasing, Inc., an Iowa corporat}on by Assignment of Mortgage a�d Assignment of Rents and Leases datesl December 29, 1969, fifed of record September 6, 19990, as Document No. 93D978 (TJ and filed of record September 19; 1990, as Document No. 2563497 (q), Note: The above Rssfgnment does not appear on the current Gertificates of Title. Note: The above Martgage was released in Abstrack records only by Dociament No. 2824030. MorYgage, Security Agreemen[ and Fixture Fifing Statament dated June 2, 1944, �iled of record Juiy 14, 1994, as Document No. 1D648i8 (T) and flled of record August 4, 1494, as Document No, 2822g25 (qy, executed by TGIAmerican Monorail, Inc., to Narwest Bank Minnesota, N.A., in the origina! principal amount of $2,776,000.00. Amended and restated by Amended and Restated Mortgage, Securlty Rgreemertt, Fixture Fling Statement and Assignment of Leases and Rents dated April 13, 1999, filed of record Aprll 25, 1489, as Dacument No. 15522b3 (T) and fl)ed of record Aprii 28, 2489, as Document No. 313Q692 (A), Note: Onfy the above Mortgage pocument No. 282Z$26 was released in ABstract rewrds by Document Na. 3603366. Assignment of Rents and Leases dated )une 2, 1994, fiied of record �uly �4, 1994, as Document (Jo. 1064819 (T} and ftled o{ record August 4, 1994, as Dacument No. 2822827 {A), executed by TC/American Mono2il, Inc., to Norwest Bank M(nnesota, N.A., in the orlgfnai prfncipal amount of $2,770,000.00. � � 7 -�109 Ordef No,: Q50453 Amended and restated by Amended and Restated Moctgage, Security AgreemenC, Fixture Fiing Statement and Assignment of Leases a�d RenES dated April 13, 1994, Ftled af rernrd Aprii 1�, 1949, as Document No. 155ZZ63 ("f) and frled of record Apri! 28, 1999, as Dact�ment No. 3139692 (q). _ Mortgage, Security Agreement, Fixture P'tnancing Statement and Assignment of Leases and Renfis dated August 3, I999, fi[ed of record SepCember 30, i999, as Documer,t No. 15735D4 ("h and Flled of record Octo6er 26, 1999, as Document No. 3281i33 (A), executed by Lang Rea{ Estate Acquisitlons, LLC, a Minnesots Ilmited Iiability company, and Steiner Real Estate Acquisitions, LLC, a Minnesota tlmtted Iiabiiity company, to Norwest Bank Minnesota, Nationa! Association, a national banking associat�on, (n the orfginal principal amount o4 $3,206,OOOAO. _ Amended by Amendment to Mortgage, Securlty Agreement, Fixture Financing Statement and Assignrnen4 of Leases and Rents dated August 1, 2000, filed of record September Z5, Z000, as Document fVO. 33461D6 (A) a�d flted of record October 13, 2000, as Document ldo. 1614678 (T}, Assigned to Wet4s Fargo Bank, NatSonaf Assodation by Assignment of Mortgage dated May Zi, 2001, f4ed af rernrd 7une 15, 2001, as Documerrt No. 3397523 (A}. CerGfied copy af name change �led of record Octaber 13, 2D01, as Document No. 1614677 m_ Financing Statement of recard as fol4ows: Real estate records on 7uly 20, 2004, as Document No. 377423$ (A). Debtor: Lang Real Estate Acquisitiaru LLC, a Minnesata Itmited Eiabi{ity company Secured Party( Welfs Pargo Bank, N.R. Real Estate Taxes: Real estate taxes far and payable in tha year 2005 in the amount af $180,842,00, first half pald, second half due October 15, 2065 BaseTax: $165,060.04,"Non-homestead.° Property �'ax IdentificaEion No. 28 Prepared: October 12, 2005 ��. �� �:�----�-- This report only ciCes matters appearing in the pu4{Ic records of Ramsey Caunty, Minnesota, anc is not to be construed as an Opinion of Title nor ts it a suhstitute for sn qbstsact of Tit{e or a Regtstered Propetty Abstract. Thfs r does not inc(ude a search for Ievied or pendfng assessments, The IiablLity of the Company in making this report shatl De l4mEtad to the cASt of this report. _� i i � i � t i 4 � I � i � a� 8�y Tract A; Parce! 1; Exhibif "A' Order No,; Q50453 Ali that part of Sections 27 and 28, Township Z9, Range 22 described as foiiows: Commencing at a point where the center line of Phalen Street intersects the Northem iine of the right ofi way of the Chicago, St. Paui, Mfnneapol(s & Omaha Railway, thence iSortfierfy an the center Ilne of Phalen Street 397.38 feet, to the Northerly line oF SU{Iwafer Avenue; thence Southwesterly atong the Northern line of Stitlwater Aveoue and that tlne produced to the Easterly boundary iine of the Northwestern Wheel & Faundry Company's Add(Cion to St. Pau{; thence Southerly along the Easteriy baundary Ilne of said Northwestern Wheel & Faundry Compariy`s Addltion to the Intersection of sald 6oundary IEne with the Northarfy boundary fine of the right of way of the Chicago� St. Paut, Minneapolis &. Omaha Railvaay; thente Northsasterly along the safd boundary Iine of safd right of way, 2&2.2 feet to the point of begtnning, according fo the Urtited States Govemment Survey thereof and situate in Ramsey County, Minnesota. Parce( 2; That strip of land tying diractly East of and adjacent to the Easterly 3fne of the Northwestern Whee{ and Eoundry Company's Addition, St. Paul, MinnesoYa, described as fotlows; Commencing at the intersection of the Northecty Iine of Ames Avenue wSth tfie center Iine of Phalen Street as same !s extended in a NorCherly dlrection; thence Westerfy along the said Northerly Iine of Ames Avenue and sa(d ttne extsnded Westeriy a distance of 66.78 feet Eo point af beginning af land to be described; ehence Northwesterly at an angle to the left 84 degrees 17 minutas wfth the said Nortfierfy iine of Ames Avenue and said Ilne extended, a d[stance of 288.35 feet to a point; khence at an angle to the ieft ofi 3 degrees 27 minutes, a distance of 47.50 feet to an iron monuinent in the Easterly line oP Lot A of the Northwestern Wheel and Foundry Company's Rddition; thence .Southeriy along said Easterly line o€ sa(d i.ot A, a distance of 335.10 Feet to the intersection with the saVd Northerty fine oP Ames Avenue and safd line extended Westerfy; thence Easteriy along said itne extended a dtstance of 3.29 feet to the beginning, accordit�g ko the United States Government Survey thereof and sttuate in Ramsey County, Minnesota, . Parcei 3: That part of the Southwest quarter of the Northwest Quarter of Sect'ron 27, Townshfp 24, Range 22 and the Southeast Quarter of the Northeast Quarter of Sectlon 28, Towaship 29, 4tange Z2, bounded as follows: On the East 6y Corning Avenue and the West fine o£ Coming Avenue extended to th° 5outh tine of Maqnopa Street as the same streets are now piatCed and lafd out; on the North by the South line of Magnatia Street; � s� 6 7-81v � --- Order No.; 050453 on the West by the Northem Pacific Raiiway Company and Yhe East Iine of the Northwestem Wheel and roundry Company's Addition; on the South by the North fine oF Ames Averwe, and the North line oPAmes Avenua extend_d Westeriy to the East iine of the Nortfiwestern Wheel and Fbundry Company's Additi�n, according to the United States Government Survey thereof and sit�ate in Ramsey Coun#y, Minnesota; Except the fof{owing tracts of 1and: (A}That parE of Section 28, Township 29, Range 22 which lles North of the North line of Cam'sng's Addition produced Westerly; (S) That tract described as foftows: Commencing on the fVArtheriy iine of StlliwaterAvenue 85 feet Westerty from Its intersectton w{th the bVester6y line of Goming Avenue; Ehence Eastarly to said intersection; thence Northerly along the Westerly fine of Corrting Avenue 85 feet; thence Southwester{y to hegfnnfng; (CJThat strip of land described as fo(lows: That strlp of land lyfng directly Eest oF and adjacent to the Easterfy 13ne of the NorChwestem Whee! and Foundry Company's Addition, St. Paul, Minnesota, descrtbed.as follows: Commencing at"the Entersection of the Idortherty iine nf Ames Ava»ue witS� the center iine of PhaleR 5treet as same is axtended in a Northerfy dlrection; thence Westerly along the said Nartherly {Ine of Ames Avenua attd said 1Gne extended Westerly a distance of 66.78 feet to point of begSon�ng of {and to be described; thence Northwesteriy at an angle to the Seft of 64 dagrees 17 minutes with the. said hlortherfy line of Ames Avenue, and said Iine extendad, a distance of 288.35 feet to a paint; thence at an a�gle to the left of 3 degrees 27 minutes a distance of 47.50 feet to an iron monument in the EesCerly line of Lot A of the Northwestern Wheel and Foundry Compa�y's Addition; thenca SoutherSy along said Easterly line of said Lot A, a distance of 3361Q feet to the.intersection with the seid Northerfy line of Amas Avenue and said tlne extended Westeriy; thenca Easterly along said line extended a distance ot 3.29 feet Eo the beginning, Together with an easement for overhang of fence along the East line of the above described premises, it being the property lying between the Easterly l(ne of tfie above said Lot A and the present wire fence where the same Is situated Easterly of the Easteriy lina of said L.oC q, T2ct B: (Torrens) AN of the Nprthwestern Whee! and Eoundry Company`s Addition to SE. Paul, according to the recordsd plat thereafi, and sltuate in Ramsey Counry, Minnesota. : . � �-�� y Order No.; QSD453 Afso all of Lots 3, A, 5, 6, 7, 8, 9, 10, 11, 12, in B(ock 1, and Lots 3, 4, 5, b, 7, 8, 9, S0. Z1� IZ, I�, 18, 13, 2D, 21 and 22 in Bfock 2 and Block 3, in Proefz Addit+on of CoIlins (Cot1ings) Outlots to St: Pauf, according to the recorded pfat tnereof, and sttuate (n Ramsey Coanty, Minnesota, tying EasCeHy of the fotlowing described fine: Commencing at the Nnrtheast comer of the Southeast Quarter ofi SeFtion 2B, Fownship 29, Ran9e 22; thence South IID degrees SO m"snutes 00 seconds East assumed bearing aiong the East line oF said Section 28 a d'sstance oF 275.55 feet plus or minus to the point of intersecEion with a line dfstant 34.00 feet measured at right angles from and paretie] to the centeriine of the Chicago, St. Paul, Mtnneapolis and Omaha Raitway; thence South 68 degrees 58 minutes 08 seconds West along said pareliel line a distance of 474.65 feet to the po3nt of beginning; thence North 20 degrees 18 minutes �9 seconds West a distance of 25I.fl2 feet to the point of intersection with a iirie distant 285.00 feeY measured at rtght angles from and paraffel to said centerline of sald Railway; thence North 68 degrees 58 minutes OS seconds East a�ong said para{let line a distance of 50.08 feet; thence North 19 degrees 56 minutes 12 seconds West a distance of 2D0.25 feet plus or minus ta tfie point of Intersection with the Southerly right-oE-way lirie of t�e Northern Pac[fic Railway and there terminating. A(so those parts of Lots 14, i5 and ifi fn said Siock 2, lytng within the boundaries of Lot S0, Colltns (Coltings) qdditton oF Outlots to St. Patsl, accocding to the recorded ptat thereof, and situate in Ramsey County, Minnesota. Excepting, however, a patt af said Lots 11 and 12 In Bbck i of Praetr Addltion of CoIfins Qutlots to St. Paul, described as faltows: Commencing af the Southeast corner of said Lat Y2, running thence Northwe5terly a(ong ths line between said Lots 12 and Lot 13 of said 61ock 1, 60 feet; thence Southweskerly 116'h feet to the Sauthwest corner of satd Lot 12; thance along tha Eine of the right-of-way of the Chlcago, Sk. Paul, Minneapolis & Omaha Raiiway ih a Northeaster(y dfirectEOn To the place of beginning; Together with ail those port'sotts of vacated Harvester Afley now known as Ames Avenue and vacated Etward AIley now kn�wn as Cop(ey Avenue accruing to safd Iots by reason ot Yhe vacation thereof. 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LEONARD S'PREET AND DEINARD TO: FROM: RE: DATE: Monte Hilleman Robyn H� Proposed District (c August 10, EXHIBIT E M E M O t��-g� 9 R A N D U M RoBrd Hnvseu 612-335-1987 DiRECT robyn.hansen@leonard.com Atlantic Redevelopment Tax Increment Financing elworks Site) At the Port Authority's request, we reviewed Section 469.174, Subd. 10 of the Minnesota Statutes to determine whether or not the former Griffin Wheelworks site meets the rests required to create a redevelopment taac increment district. As you laiow from previous advice provided by this office, that statute allows a redevelopment district to be created if the Authority finds by resolution thaf "the properiy consists of vacant, unused, underused, inappropriately used, ar infrequently used rail yards, rail storage facilaties, or excessive or vacated railroad rights-of- way". T'his provisions was ori�nally enacted in 1987, and the text has not been changed since that time. We were unable to locate any case law or attomey general opinions to assist in interpreting this provision, and therefore, will look to the public purpose of the statuCe. The facts, as I understand them, are set out in your file memo dated August 9, 2007, attached hereto. Based on the facts outlined in your memo, we believe that this property may be included in a redevelopment district. The public pwpose of the statute is to acknowledge that railroad lands need to be redeveloped since the railroads are declining in use in favar of other modes of iransportation. This property appears to faii within the intent of tiae statute to redevelop land formerly used by or in connection with the raiiroads. The last significant development of the Site was the construction of the Griffin Wheelworks faciliry in the late 1800's. That facility was related to tl�e raikoad. It closed more than 50 years ago, and there has been no development of the Site since then. As required by the statute, in order to create the redevelopment district, the Port Authority will have to find by resolution that the properry meets the test outlined in Section 469174, subd. 10 discussed above. We believe that this finding woulc3 be reasonable. In order to get to that conclusion, we would also require the Authority's resolution to contain a finding that the property has not been significantly redeveloped since its use as railroad properiy. 3950480.1 �? 8� y If you have any questions regarding the above or need furtlier information, please give me a call. /ji 3950480.1 E-2 �� -��y ���IT � Photos of E�sting Trackage 3950430.1 E-3 EXHIBIT F N d N � ao 00000000 000000000 0 00 00000000 000000000 0 00 00000000 000000000� o 0o drooti000ai 000c0000d<o 00 000�nomo» o���� oo�n.- �n NN N t�-C �Y m .-<e-.-�u�N�� W � � r � � � EA fA EH V3 Vj V> tA fs3 Efl fA V> fA fa9 (+9 EA tt3 Ffi N3 Vi W J a Q Q O � O � O m m m E.- y V� J Qy m.� (=i� a� m in a m m� � � min Y � N � � N 0 �p O O(n � �C� " ti � �d p� <° c. m a � c � m o� d� m o N °-� Uro�=a� mm>U W y � o �'L ` o o � m o� � � U N >m °'mdmm �°C a �n'�x c ��' � y ��w a m� cno`o�Wywv � a 'ca�icma �=`o�L°:>Qoo p ¢ w�w>c��� ��cnc�Uaaa }- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O oc or5 0.=o ui uiocoui �e � O O O 1� i+ O O� O M � t() tn (p � N NN N M 7 cON O� c'�NO �.. p� •-- � �- � Pi r �p U3 W F!i K3 EH V> V> Vj fA V3 63 V3 H3 v} �g 4 J 0 � � O N O F � 9 � c � � 3 � y o R N �� o€ N cU U F�- cQU� � a c �dF-�o U` o � �° c W E tn o � tq c-� m C9 m � o- �-i o w 0 � y� � a c� ��-°� a�'� c> � n_ > � � F N't �c� N c d' '�o �� � N a O v, c� � CJ d a � v3 �� y � o � U � � �a �¢a�a�a !�w �.a °��', � w--a� o ¢c� �wu�i�wow na��nm {... 6 ��8t�� m a EXHIBIT G �7-8r 9 � � > 0 V � LL. 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J � � ¢¢aa aaaa wwcncn O O � ti � � N 4i> � D O � � J Q F- O F- � � N � J Q F � }" m � N N � � � C l6 N d V L � '�^ VJ � E�FIIBZT H 0 0 0 0 0 0 0 0 0 0' o 0 0 0 0 0 0 0 0 0 0� o 00 00 o a0000 0 0 0 0 0 0 0 0 0 0 0 0 O M O O � �t��c�-r N N (�j e= yj tA H! fA EfJ fA V3 EA ER V3 V3 HY F �- F m L � 7 u� rn u� . v� . � N y m a�i � m � � _ � � 'oo� � �- C N a N � O � � O y o V � � U W ° °m ��rnZ' � �� �o a�i � SWU Q Q �� � � >'C F- �(.�Ud � O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 00 0000000 �r;uio 0 0 M M 0000000 CO C7tn tn pp M M M tn (O O N N W <- (O M t- {V r �= Cj a•- 1ry f9 Vl ER KT El} H3 H3� (A Y! t{3 E{3 EH �A � J 1 _1 f' I� f, O 0 p O p O � m � �1 c � m a � � n � � y � C G R N f.� C@ � O O p C � � Q �C ~ ¢ C LL o � p� � c w(A p� y -� � -� <6 (7 � � � J W W Z d a � � � y � U � � O a .� ? � F- m Q� m�_ �� �._ � V O ' � � � `� � o -� V °—' g � � a�`i J � G�a �qa V 4�¢ y,a E I- vn, waa �awa �-�a m p Q[n CL lll cn `L W CI IL tn U d) R �-- �/ OCl/! m a EXHIBIT I 67-8� � � > 0 � � LL. F- ic � � a a� � 0 � a � � � � �- � N O O O O O O O O � � p � � � � ti> h. oJ (+) � � N (A ER E!3 Ef-} ERT J Q N f'� 'U � O c � F- Q y 0 � �U � C � C � � � a � J J � � C C ���� J J � � QQd(1. �aaa wwcnu� 0 0 0 0 0 0 � � r- n � � N N V> fR J o Q � Q w+ ~ C N � N i U C EXHIBIT J � 7��i�� TaX INCREMENT FTi�'ANCING PLAN for fhe establishment of the GRIFFIN REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND HA7 ARDOUS SUBSTANCE SUBDISTRICT PORT AUTHORITY of the CTTY OF SAINT PAUL RAMSEY COUNTY STATE OF MINNESOTA Adopted by the Port Authority: AuQUSt 28, 2007 Approved by the City Council: �? 8(��'! PORT AUTHORITY OF THE CITY OF SAINT PAUL TAX INCREMENT FINANCING PLAN FOR THE GRIRFIN REDEVLOPMENT TAX INCREMENT FINANCING DISTRICT AND I�AZ.ARDOUS SUBSTAIVCE SUBDISTRICT Section I. Introduction A. Background Tn 2007, Capital City Properties ("CCP") a non-profit affiliate of the Port Authority of the City of Saint Paul ("the Port Authorit�') acquired approximately 9.3 acres of land in the Dayton's Bluff neighborhood on the East Side of Saint Paul (herein, the "Site"). The Site is generally located South of Phalen Boulevard, and is bounded by Atlantic Street to the west, Johnson Pazkway to the east, Centrai Pacific rail tracks to the south, and Phalen Boulevard to tt�e north. The Site was originally part of a 17 acre parcel that the previous owners split from the north eastem 8 acres which houses, and will continue to house, a one- story commercial building under lease to the Saint Paul Public 5chools. Property records indicate that a grain harvester manufachxrer, a foundry, a raikoad wheel shop and a conveyor manufacturer, and other industrial predecessors haue occupied the Site. A significant number of rail lines served these businesses and the remnants of those lines exist at grade today. Be �1T1111ll g in 1896, the Site was owned by Griffin Wheel Company, a railcar wheel manufacturer, which operated at the Site until the late 1950's. By 1964 the Griffin Wheel Company Plant had been demolished and the Site has remained vacant since that time. In 1995, the Board of Commissioners of the Port Authority adopted its Resolution No. 3538 creating the Phalen Corridor Industrial Development District (the "Industrial Development DistricY'). The Industrial Development District was amended in 1997, 2003, and 2005 to include additional property. The 2005 amendment included the addirion of the Site to the Indushial Development District. In 2004, the Board of Commissioners of the Port Authority and the City Council of the City of Saint Paui adopted the Westminster Junction Tax Increment District and Hazardous Substance Subdistrict and related Taac Increment Financing Plan for the westem area of the Industrial Development District, which is generally located west of Arcade Street. The Griffin Redevelopment Tax Increment Financing District is located at the far eastern end of the Industrial Development District. The goal in creating the Indushial Development Dishict and related tas increment districts is to create the mazcimum tas base and job creation in the area. B. Creafion of Redevelopment Tas Increment District and Hazardous Substance Subdistrict; Statutory Authority. This taY increment plan relates to the creation, under Minnesota Statutes Section 469174, Subd. 10, of the Griffin Redevelopment Tas Increment Financing District (the b���lD� "DishicP') consisting of the appro�snately 93 acre site purchased by CCP, and the creation within the I}ishict of a Hazazdous Substance Subdistrict (the "HSS'� pursuant to Section 469.175, Subd. 7. C. I3eed and Public Purpose The Site is located on St. Paul's East Side, in the eastern portion of the Phalen Comdor. The Bast Side formerly houserl large, industrial, and commercial job centers that empioyed thousands of neighborhood residents and served as unifying features within the neighborhood. Job losses, due to the closing or major downsizing of 3M, Whirlpool, Stroh Brewery faciliries and others, have altered the economic and cuitural landscape of this neighborhood. As the jobs left the core city, so did many of the residents with dis�osable incomes. As a result, the East Side commercial corridors of Payne Avenue, East 7 Street, and Arcade Street slipped from thriving prosperity to blighted decline, which has, in tum, depressed properiy values in adjacent neighborhoods. The loss of good paying jobs in the area has also contributed to the decline of home ownership in the adjacent neighborhoods. The area immediately surrounding the Site is occupied by a xnix of low intensity commercial and industrial uses (pole barns, auto salvage, and outdoor storage) and housing in significant need of rehabilitation. The East Side is experiencing some reinvestrnent, spuned by other brownfield redevelopment along the new Phalen Boulevard and anchored by public, private and insfitutional inveshnents along the Phalen Cortidor. The construcfion of the new Phalen Boulevard has created quick access to previously hard-to-reach properties throughout the East Side. However, the Griffin property is far too impacted by contamination, geotechnical problems and past railroad usage for the private mazket to overcome and redevelop as evidenced by over 40 yeazs of inactivity on the Site. The Port Authority believes that trris area wili experience private sector reinvestment with the encouragement provided by redevelopment of the Site. In early 2006, the City of St. Paut convened a community forum to plan for the next three years of work along East 7th Street (the nearest commercial street south of the Site). This forum concluded that improvements and success with efforts in crime prevention, public safety, business and city investment, and joint marketing are greatly dependent upon an influY of jobs and new private investment to the azea. The participants in the £orum and the Port Authority believe that this area will benefit by the redevelopment of the Site. The Site lies within the "Dayton's Biuff' neighborhood of St. Paul. This area is among the most unpoverished in the Twin Cities. Fourteen percent of the neighbarhood population and 18% of all families live below the poverty line. For context, 6.1% of the Twin Cities metropolitan area population and 6.5% of inetropolitan area fasnilies live at levels below the poverry line. The project area population displays great ethnic and cultural diversity. The non-white population is 60% of the neighborkood. Black individuals comprise 4% percent of the neighborhood popularions, Hmong persons comprise 17% of neighborhood population, and the Hispanic population comprises 10% of the neighborhood population. 3 � � • SixYy-nine percent of public school children in this neighborhood are children of coloz and 48% of the public school children speak a language other than English as their primary lanwage at home. [Source of all data: Wilder Foundation Dataworks, compiled from Census 2000 data]. The Ciry of St. Paul is a designated Enterprise Community, a HUD program, and incIudes the former Griffin property. CCP purchased the Site with the intent of remediarion and redevelopment pursuant to a Response Action Plan, preparing the properiy for development, then selling the properiy to business entities which can meet the Port Authority's job creation and wage requirements (the "ProjecY'). CCP compiies with Port Authority requirements that all of its property buyers enter into covenants which maximize building coverage of the property, provide a high rario of livable wage jobs per square foot of development (minimum of $11.00 per hour plus benefits, 1 job/1000 square feet of building), along with a goal of 70% of the new jobs created going to St. Paul residents. Before the property can be sold to selected busanesses, CCP must complete the MPCA required Response Action Plan, perform geotechnical soils corrections, grade the property, and prepare utility connecrions and curb cuts to facilitate development of the properiy. CCP's plans for the properiy, the "Redevelopment Plan", anticipate that the new development will involve approxunately 137,000 sq 8 of light industrial buiiding space, which should provide approximately 13'T-205 new jobs and approxnnately $253,000 in annual properiy taxes. This job creation estimate is based upon the jobs per square foot created at the past six Business Centers developed by the Port Authority andlor CCP. The fizture buildings will be accessed from Phalen Boulevard. Section II. Obiectives of the Port Authoritv for the Imnrovements in the Distric� A. Provide Job Opportunities for Saint Paul residents. The Port Authority's goal is to create or retain at least one job per 1,000 squaze feet of construcrion. As a result, the Port Authority wiil require that at least 137 new j obs will be created or retained by the conshuction of an approximate 137,000 square foot business center. Based upon the Port Authority's experience at the Crosby Lake, Arlington / 7ackson, Williams Hill, Great Northern Business Center — North and Great Northem Business Center - South, and Energy Lane Business Centers, however, approximately 1.5 jobs were created per 1,000 square feet of construcfion. This job creation lustory exceeds the Port Authority m%nimum of one job per I,000 square feet. The Griffin Business Center might also achieve this higher job production level, depending on the market. !! 67-�� I B. To Redevelop Underused, Inappropriately Used, or Infrequently Used Railroad Property. The District has been owned by a variety of railroad related heavy industrial companies since the late 1800's, and has been unused since the 19�0's. The several rail lines that served these companies, and continue to have easement rights across the Site, have s bonificantly contributed to the stagnant, non-productive, under-utilization of the Site. C. Develop the Griffin District for Light Industrial Business. The District will provide approximately 93 net developable acres or 392,040 squaze feet of land. 4Vhile it is anficipated that the development will result in light industrial space, the Redevelopment Plan and this Tas Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activifies. There will be improved access to and from the Site from Phalen Boulevard. The District area is currently zoned ]R – Light Industrial Restricted. The District is located along a major bus line on Mimiehaha Avenue East, as well as being within several blocks of at least hvo additional lines, all of which enhance access to jobs for Saint Paul residents. Construcrion costs are estimated at an average of $85.00 per square foot based upon Port Authority requu of end-users. D. Expand the Industrial Tas Base Of The City Of Saint Paul. It is expected that the taxable mazket value of parcels in the Dishict will increase by approximately $12,000,000 once the Site is placed in service. Tkris value will come from private development over the life of the District and the Redevelopment Plan consisting of approximately 137,000 square feet of light industrial development with an average construction cost of $85.00 per squaze foot. The Port Authority will require 35% coverage of the land by buildings. The taxable value of the new facilities is assumed to be 90% of their construcfion cost. In addition, the land value would increase to reflect the value of clean land versus polluted soils. A 2006 appraisal of the land reflected an"After- Remediation" land mazket value of $1,570,000. E. Hazardous Substance Remediation. Pursuant to its MPCA approved Response Acrion Plan, CCP is in the process of remediating the land in the District at a cost of approximately $4.47 million, which exceeds the County's assessed value of $3.2M and a 2006 appraised market vaiue of $1.57 million for this parcel (as "unpolluted" — or, remediated to MPCA requirements). The MPCA approved Response Action Plan provides for the remediation of contaminated soii, which includes petroleum volatile organic compounds, lead, anrimony, copper, and asbestos. These activities wiil elinunate areas of hazardous substances in the designated hazardous substance sites. 5 ��-�� Section III. Classification of the District The Port Authority and the City of Saint Paul have found that the Dis�ict is entitled to be quali&ed as a Redevelopment District pursuant to Minnesota Statutes, Section 469.174, Subd. 10 because the Site consists of vacant, unused, underused, inappropriately used, or infrequently used rail yazds, rail storage facilities, or excessive or vacated righfs-of way. This conciusion is supported by the fact that: � In 1896 the District was part of the Griffin Wheel Company, a rail car wheel manufacturer still based on Chicago. Griffin operated its plant in the IJistrict untii the late 1950's, but closed and demolished it buildings by 1964. The Site has been vacant since 1964. �: Title reports show that the Dish�ict s burdened by as many as five separate railroad tracks and related easements in favor of (i) Northem Pacific Railway Company of r purposes of using, maintaiiung, operating and removing rail tracks, including the switch track and spur located thereon; and (ii) Clvcago, Saint Paul, Minneapolis and Omaha Railway Company on certain switch tracks far shipping purposed on connection with e operation of nay business or industry located thereon. e: Plat maps from 1908 through 1965 show the location of railroad spur tracks and rights- of-way. These rights-of-way have not been vacated but are unused. Unused railroad trackage remains in the District yet today. In addifion, the District meets the requirements of a Redevelopment District pursuant to Minnesota Statutes, Section 469.176, Subd. 4, because at least 90% of the revenues derived from ta�c increments from the District will be used to finance the cost of correcting conditions that allowed desi�ation of the District as a Redevelopment District under Section 469.174, Subd. 10 described above. These costs consist primarily of acquisition, demolition, envuronmental cleanup, grading, soil corrections, and public improvements. The aliocated administrative costs may also be included in the qualifying costs. The Port Authority and the City have further found that it is appropriate to create a Hazardous Substance Sub-district (HSS) wiflun the District pursuant to Minnesota Statutes, Section 469.175, Subdivision 7 because: a. Due to the presence of significant environmental contamination, and the significant costs to implement the MPCA approved Response Action Plan for the Site, redevelopment of the District would not reasonably be expected to occur solely through private investment or the tax increment otherwise available from the Aistrict; b. The HSS is not larger than, and the period oftime 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. c. Other nearby pazcels that are not designated HSS Sites and aze outside the district are expected to be developed together with the designated HSS. � D?-Slv9 Section IV. Descrintion of the Develooment Pro2ram for the Griffin Bussness Center The Redevelopment Pian consists of the development of one to three buildable sites in the District. In anticipation of this ultimate use, CCP has acquired the Site and is managing site demolition, pollution remediation, soil corrections, and infrashucture installation. In addition, CCP will undertake to provide finaucing and administrative functions, all as described in more detail below and in the Sources and Uses budget attached as Appendix E. Estimated costs associated with this District are subject to change and may be reallocated between line items provided thae the cost of all activities to be financed by the tas increznent will not exceed, without formal modification, the budget for the taY increments set forth on Appendix E. A. Site Acquisition, Assembly, and Relocation CCP has acquired the District at a base 1and cost of $1,050,000. The total acquasition cost inciuding appraisals, site securfty, professional fees, and other closing costs is anticipated to exceed $1,200,OQ0. B. Remediate Polluted Soils Remediation costs are estimated ta total appraximately $4,467,000. These costs include $200,000 of completed environmental studies and over $4,000,000 of estimated cleanup costs. The cost will also include line items for field testing, soil remediafion, MPCA oversight, and related professional services. Actual costs may increase based upon actual quantities and conditions encountered during remediation. C. Undertake Soil Corrections and Install Site Improvements and Utilities Site improvements will include engineering, soil corrections, site grading, gas and electric utilities, and landscaping. Total site improvement costs are anticipated to equal approximately $1,525,Q00. D. Contracts for Professional Services Essential to the Redevelopment Activifies Professional services will include land surveys and title work, real estate, civil engineering, geotechnical engineering, appraisals, traffic engneering, historic preservation and site design, real estate brokers and other professional services as required. The total cost for professional services, other than professional costs associated with the creation of the District, is estimated at $810,d00. A portion of these costs have been incurred and the remainder will be incurred during unplementaCion of the Redevelopment Plan. 7 a�-��� E. Contingency for Addiflonal Costs Redevelopment of contaminated industrial land is complicated and there are often additional costs or cost oveiruivs. A$100,000 contingency is included in the redevelopment budget for this purpose. Section V. Aescrintion of Contracts Entered Into at the Time of Preaaration of the Pian The following, as required by Section 469175, Subd. 1(3), is a list of development acqviries that are proposed to take place within the Dishict for which contracts have been entered into at the time of the preparation of trus plan, including the names of the parties to the contract, the acrivity govemed by the contract, the cost stated in the contract, and the expected date of completion ofthat activity. A. Site Acquisition, Assembly, and Relocation CCP has acquired the parcel at a cost of $1,200,000, including appraisals, site security, professional fees, and other closing costs. B. Contracts for Professional Services Essential to the Redevetopment Activities. CCP has entered into the foliowing professional services contracts with the foilowing fitms: • Short Elliot Hendrickson Associates, an engineering firm, to perform duties associated with project development, remediation specifications and the oversight of remediation at a cost of $280,000. Completion is expected by December 1, 2008. Liesch Associates for environmental testing of the subject pzoperty, development of a cleanup plan and coordination of these activities with the Minnesota Pollurion Control Agency (MPCA), environmental engineering services related to the implementation of the cleanup plan for the site, and reporting to the MPCA on cleanup implementation at a cost of $400,000. Complerion is expected hy December 31, 2008. Rani Engineering for Stormwater engineering services totaling $30,000. Completion is expected by December 1, 2008. Section VI. Descripfion of Other Tvues of DeveloAment Activiries Which Can Reasonablv be Expected to Take Place Within the District It is expected that the end-users of the Site wili consist of light industrial businesses. These activities are anficipated to provide space that leads to the creation and retention of living wage jobs. This District will generate new construction taxable value of approximately $12 b ?-81�9 million based upon approxixnately 137,000 square feet with an average coiishuction cost of $85.00 per square foot, assumnig a 35°lo building to land coverage ratio applied to 93 acres, and 90% tazable valuation of construction costs. The t�able land value will also increase to approximately $1.6 million based on the remediarion of currentiy heavily contatnivated properiy. For ptuposes of its pmjections, the Port Authority has assumed that 137 jobs will be at the Site based upon its policy of creating a miniinum of one joh per 1,000 squaze feet of construction. As described in Part II.A., the Port Authority's experience would support a conclusion that approatimately 1.5 jobs per 1,000 square feet of buiiding space will be created. Section VII. Estimated Cost of the Proiect and Descriation of the District The following, as required by 5ection 464.175, Subd. 1{5), are estimates o£tl�e (i) cost of the project, including administration expenses; (ii) amount of bonded indebtedness to be incurred; (iii) sources of revenue to finance or otherwise pay public costs; (iv) the most recent net taY capacity of taxable real property within the Dishict; (v) the estimated captured net tax capacity of the District at completion; (vi) the original tax capacity and captured tas capacity of the HSS and (vii) the duration of the District's and the HSS's existence. A. Cost of the Project, Including Administrative Expenses. The total cost ofthe project, exciuding debY service, is estiivated at $8,102,000 plus administrative charges in an amount up to the lesser of 10°l0 of the tax increment expenditures, or 10% of total tax increment, as defined by Secrion 469.174 Subdivision 25, Clause l. B. Amount of Indebtedness to be Incurred. The Port Authority does not intend to issue revenue bonds for this Project, but the Project may obtain: (i) an interest-bearing interfund loan from the Port Authority EPA Revolving Loan Fund which would require a balloon payment or refinancing at the end of the tenth year, and (ii) an interest-bearing interfund loan from the Port Authority's Development Fund. The total of these loans is estimated at $4,400,000 and would be repaid from tax increments. C. Sources Of Revenue To Finance Or Otherwise Pay Public Costs. The following are the likely sources for funding the total project, including the tax increments, which will be pledged 'uutially to the above indebtedness: i_ Tas Increments Ta�c increments, net of 10°lo administrative expenses of $25,340, are anticipated to equal $228,064 annually. These tax increments wiil be first pledged to pay principal and interest on the EPA revolving loan, and any b � �SC�i 9 loan made to refinauce the EPA loan at ti�e end of the tenth year. Taz increments remauaing after the payment of the EPA 1oan wi11 be pledged to repay the Port Authority for the funds conhibuted to this project through and interfimd loan from the Port Authority's Development Fund. It is fiu anticipated that ta7t increments in excess of those needed to pay admn�istrative costs and the debt service on the EPA and Developrnent Fund interfund loans wi11 either be used to support additional indebtedness or to pay or rennburse the eligible costs incurted in the redevelopment of the DisYrict, to the extent not paid from the EPA loan or the Developrnent Fund interfund loan. ii. Inveskment Income It is expected that a11 funds will be expended as received. iii. Othez Sources If other funding sources are not identified, the Port Authority may also fund additional amounts currently estimated at $2,465,500. These funds may be repaid with interest from auailable t� increment. iv. Grants It is anticipated that grants wi11 inciude $1,691,000 from the Minnesota Department of Employment and Economic Development, $371,000 from the Metropolitan Council, $400,000 from the US Environmental Protection Agency, $345,000 from the Minnesota Department of Employment and Economic DevelopmenYs Redevelopment Grant Programs, and $250,OOQ from City of St Paul STAR funds. D. Most Recent Net T� Capacity of TaYable Real Property Witbin the Tax Increment Financing District. The net tax capacity for the Dishict has been estimated for purposes of this plan and will be included at its actual value befare request for certificafion of the District. The total District has an Estimated Market Value of $3.2 million according to Ramsey County records for properiy taYes payable 2007. [NOTE; This value is bemg contested by a previous properiy awner as the property is significantiy contaminated. A 2006 appraisal by the Port Authority reflected a$1.57 million 1and value, "After-Remediation".) The originat tax capacity and Titt Rate are calculated in accordance with 1V�iny:esota Statutes, Section 469.I74, Subd 7 and Sectiox 469.177, Subd 1. 10 � �� V "� � The net tax capaeity of the District is $64,000, which is calculated by multiplying the light indushial taY rate of 2% by the estimated market value of $3.2 million. It is anticipated that this amount will be reduced substantially due to the pending appeai. The original taz capttcity and Tax Rate are catculated in accordance witJz Minnesota Statutes, Section 469.174, Subd 7 and Section 469.I77, Subd 1. E. Esfimated Captured Net T� Capacity of the Tag Increment �inancing District at Completion. The Dishict will have 9.3 acres of developable land at a 35% building to land ratio for a min;mum of approacimately 137,000 square feet of new buildings. The expected aggregate cost of the new conshuction is 11,663,000. Approximate County assessed value of buildings is likely to be 90% of construction cost or $10,480,500. Applying a 2.00% taac capacity rate yields a building tax capacity within the District of $209,610. Land within the Aistrict had a 2006 "After- Remediation" appraised value of $1,570,OOQ. Applying a 2.00% taac capacity rate to the land yields a land ta�c capacity of $31,400. Therefore, the net tax capacity of the Dishict at compledon is $241,010. This captured talc capacity is calculated in accordance with Minnesota Statutes, Secfion 469.174, Subd. 4 and 469.177, Subd. 2. F. Originat Tax Capacity and Captured Tax Capacity of the HS5. The HS$ is expected to include the same parcels as the District. Therefore, the net tax capacity of the HSS is $241,010 at completion (the same as the District). Expected remediation expenditures are approxunately $4.5 million. Pursuant to Minn. Stat. Section 469.174, Subd. 7(b} the remediation expenditures are deducted from the most recently determined tax capacity to calculate the ori�nal net tas capacity of the HSS, which may not be less than zero. In this case, the remediation expenditures exceed the most recently determined tax capacity, therefare the original net tax capacity is $0. G. Duration of the Tax Increment �nancing Districf's E�stence. The request far certification of the District will be filed in 200'1. The first tas increments are anticipated to be generated for tares payable in the year 2008. The duration of the Dashict will run 25 years from the firsi receipt by the Port Authority of tas increments, which is anticipated to be the calendar yeazs 2008 tlu 2033. Section VIII. Alternate Esrimates of the Imnact of the Tax Increment Financine on the Net Tax Canaciries of All TaainE Jurisdictions The taYing jurisdicrions in which the Dishict is located in whole or in part are as follows: a. Independent Schooi District #625, whose boundaries are coternunous with those of the City of Sairrt Paul. 11 ��-8l� � b. The County of Ramsey, the total mazket value of which the City of Saint Paul contributes appro�mately 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 aze coterminous with those of the City of Saint Paul and whose powers to levy and use property taxes aze limited. e. Metropolitan authorities, such as the Metropolitan Council, Metropolitan Airports Commission, Metropolitan Waste Control Commission, arAd the Metropolitan Mosquito Control District. Of these, orily the Metropolitan Council and the Metropolitan Mosquito Control District currently levy taYes on real estate. The Port Authority is required by Minnesota Statutes 5ection 469.175, Subd. 1(6) to make statements relative to the alternate estimates of the impact of the tax increment financing on the net tax capacifies of all taxing }urisdictions in which the tax increment financing district is located in whole or in part. For purposes of one statement, which is made in Statement A below, the Port Authority sha11 assume that the esrimated captured net tax capacity would be available to the tasing jurisdictions without creat3on of the District. For purposes of the second statement, made in 5tatement B below, the Port Authority shall assume that none of the estimated captured net tax capacity would be available to the taYing jurisdictions without creation o£ the District. Statement A. Under the assumption that the estimated captured net taac capacity would be available to the tu�ing jurisdictions without crearion of the Dastrict, creation of Yhe District will serve to deny these ta�cing jurisdictions the taxes from the captured net tax capacity in the amount estimated under Secrion VII.E. above. In addition, the ta;tes on the base value will also be lost due to the HSS created within the District. Statement B. The Port Authority believes that none of the estunated caphued net tax capacity wauld be available to the taxing 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. Assuming this to be hue, the tasing jurisdictions would contirtue to receive the same amount of taxes as they have currently been receiving based on the current net taY capacity of the District as set forth in Section VII.D. above. Once the taY increment district terminates in 2035, tlie ta;cing jurisdictions will receive taxes for parcels estimated value after redevelopment at $12.1 million. 12 a7-�1l�� Secfion IX, Studies and Analvsis Bsed fo Deternune Need for Tax Increment Financin The Port Authority has detennined that the proposed development or redevelopment of the District would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fuhue and that the increased mazket value of the Dishict that could reasonably be expected to occur without the use of tas increment financing would be less than the increase in the market value estimated to result from the proposed development a$er subtracting the present value of the projected tax increments for the maYimurn duration of the District permitted by the Plan. The Port Authority has studied the District and concluded that (a) due to the presence of vacant, unused or vacated railroad rights of way and trackage, significant environmental contauiinarion, and the significant costs of the redevelopment and xemediation that would have to be compieted, redevelopment of the District would not reasonably be expected to occur solely through private investment or the tax increment othenvise available from the District; (b) the HSS is not lazger 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 naeded in the Disirict. Section X. Identificafion of A31 Parcels to be Included in the Disirict Attached hereto in Appendix A through D are a list of the Property Idenrification Numbers for all properties to be included in the District, a map showing the Project azea, the District and the existing properties, and a legal description identifyiug the boundaries of the Aistrict. Section �I. Hazardous Substance Subdistrict. CerCification of the HSS will allow taxes attributabie to the base value of the District to be used to reimburse or pay all or a portion of the estimated $4,467,000 of pollution testing and remediation costs, plus any other eligible costs. As was mentioned in Section VLCI above, the HSS will cause tases on the base value of the District to be lost until such time as the pollution cosCs are sarisfied. Total esYiruated ta�ces payable in 2007 for the District were $55,819. A Response Action Plan has been completed and approved by the MPCA. The Port Authosity has studied the District and concluded the development would not reasonabiy be expected to occur solely through private investment and taat increment otherwise auailable from the District, for reasons stated in this plan, and therefore the use of the HSS is deemed necessary. Attached hereto in Appenduc B through D aze a list of the Properiy Identification Numbers for all properties to be included in the HSS, a map showing the Project area, the HSS and the existing properties, and a legal description idenrifying the boundaries of the HSS. Other parcels outside the district that are not desigiated hazardous substance sites are expected to be developed together with a designated hazardous substance site. The HSS is not larger than, and the period of time during which increments are elected to be received is not longer 13 d�-gt� � than, that which is necessary in the opinion of the authority to provide for the additional costs due to the designated hazazdous substance site. Settion XII. District Administration and Annual Disciosure. Administration of the Disttict will be the iesponsibility of the Port Authority. The resolutions of the City and the Port Authority approving and creating the District will direct the County to forward all taY increment from the District to the Port Authority. Tax increments will be deposited into interest bearing accounts sepazate and distinct from other funds of the Port Authority. Since tax increments aze anticipated to be less than previously incuned costs, no interest earnings are anticipated. Tax increments will be used only for acrivities described in this Plan. The Port Authority will report annually to the State Auditor, county boazd, school boazd and Departrnent of Revenue regazdiug acrivities in the District as required by Secrion 469175, subdivision 5 and subdivision 6 and will include information with regard to the Aistrict in the data necessary to comply with such subdivisions. Section XIII. Modificaiions to District 7n accordance with Minnesota Statutes, Section 469.175, Subd. 4, any reduction or enlargement of the geographic azea of the District; increase in amount of bonded indebtedness to be incuned, including a detenrAination to capitalize interest on debt if that deternunation was not a part of the orignal 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 estunated taY increment �penditures; or designation of additianal properiy to be acquired by the Port Authority shall be approved only upon the notice and after the discussion, public hearing and fmdings required for approval of the original plan. The geographic area of a ta;c increment financing disirlct may be reduced, but shall not be enlarged a$er five years following the date of certificafion of the original taY capacity by the county auditor. Section XIV. Administrative Exnenses In accardance with Minnesota Statutes, Secrion 469.174, Subd. 14; and Mimiesota Statutes, Section 469176, Subd. 3 administrative expenses means all expenditures of an authority other than amounts paid far the purchase of land; amounts paid to contractors or others providing materials and services, including architectural and en�neering services, directly connected with the physical development of the real property in the District; relocation benefits paid to or services provided for persons residing or businesses located in the Dishict; or amounts used to pay interest on, fund a reserve for, or seli at a discount bonds issued pursuant to Section 469.178; or amounts used to pay other finance ohligaUons to the extent those obligations were used to pay the preceding costs. Administrarive expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and 14 b ?-�� � platuung or economic development consultants. Adminishative expenses of the Dishrict will be paid from taY increments, provided that no taY increment shall be used to pay any adininisirative expenses for the Dishict which exceed ten percent of the totai tax increment expenditures authorized by the tas increment financing plan or the total tu� increments, as defined by statute, from the District, whichever is less. Pursuant to Miunesota Statutes. Section 464.176, Subd. 4h, ta}c increments may be used to pay for the county's actuaI admitustrarive expenses incurred in connection with the District. The county may rec}uire payment of those expenses by February 15 of the year following the year the expenses were incurred. Section XV. Necessarv Imnrovements in the District No taY increment shall be paid to the Port Authority after three years &om the date of cerhification of the original net taY capacity of the District by the County Auditor unless within the three-year period: (1) bonds have been issued in aid of the Project pursuant to Secfion 469.178 of the TIF Act ar any other law, except revenue bonds issued pursuant to 1Vlinuesota Statutes, Secrion 469.159 to 469.1 b5; �2) t3) the Port Authority ar CCP has acquired properiy witlun the District; or the Port Authority ar CCP has constructed or caused to be conshucted public improvements within the District. Since CCP acquired the approximately 9.3 acre Site in the District, and incurred indebtedness with respect to the District, this test has been met. Section XVI. Use of Tas Increment All revenues derived from tas increment shall be used in accordance with this tas increment financing plan, and pursuant to Minnesota Statutes, Section 469.176, Subdivisions 4, 4e and 4j. Section XVII. Notification of Prior Planned Imurovements Pursuant to Minnesota Statutes, Section 469.177, Subd. 4, the Port Authority has diligentiy searched the area to be included in the District and has not found properties for which building pemuts have been issued during the 18 months immediately preceding approval of the P1an by the Por[ Authority. 15 a�-��� Seetion %VILi. E�cess Tag Increments Pn*�c„ant to Minnesota Statutes. Section 469.176, Subd. 2, in any year in which the tas increment exceeds the atnount necessary to pay the costs authorized by the taY increment plan, includiug the amount necessary to cancel any tax levy as provided in iviimiesota Statutes, Section 475.61, Subd. 3, the Port Authority shall use the excess amount to do any of the foliowing: l, pay additional indebtedness used for project costs; 2. prepay any outstanding bonds; 3. pay into an escrow account dedicated to the prepayment of such bonds; 4. discharge the pledge of tas increment therefore; 5. retum the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion of their tax capacity rate. In addifion, the Port Authority may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in District or Redevelopment Project Area. Section XIX. �scal Disuarities The Port Authority and the City have elected to compute Fiscal I}isparities contribufion for the District in accordance with Section 469.177, subdivision 3, paragraph a. Section XX. Reauirements for Aereements with Develouers The requirements of Miunesota Statutes Section 469.176, Subd 5, with respect to agreements far the development or redevelopment of the Site do not appIy since the enfire District will be an HSS. 5ec6on XXI. Develonment and Job Creation To the extent applicable, the Port Authority agrees to comply with Minnesota Statutes, Section 116J.991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tas increment financings, must create a net increase in jobs and meet wage level goals in Minnesota within two yeazs of receiving assistance. 16 t��-��� Appendix A Property Identification Number witbin the District PARCEL ID - 28.29.2214A076 b� �gl�� Appendig B Property Tdenrificarion I�TUmber within the HSS PARCEL ID - 28.29.22.14.0�76 07-81�� Appendig C Legal Description ofParcels Within the District PARCEL ID - 28.24.22.14.0076 Vac Sts & Alleys Adj & That Pt Of Sec 27 & 28 Tn 29 Rn 22 & That Pt Of Blks 1,2 & 3 Proetz Add Of Collins Outlots To St Paul & That Pt Of Lot A In Sd Northwestern 4Vhee1 And Foundry Co's Add Which Lies Wly Of The Cl Of Phalen St And Which Lies Siy Of A L Desc As Com At The Inter Of The Cl Of Phalen St And The Nly RJw L Of Ames Ave Th Swly Along The Swly Ext Of Sd R/w L 189.60 Ft Th N 15 Deg 13 Min 54 Sec W 458.54 Ft To The Ely R/w L Of Northem Pacific Rr (now Phalen Blvd) And Sd L There Term & Which Lies Ely Of A L Desc As Com At Ne Cor Of Se 1J4 Of Sec 28 Tn 29 Rn 22 Th S Along The E L To Intersect With A L 34 Ft I31y Of And Par With The58 Min 08 Sec W Along Sd Par L 474.65 Ft To Pob Of L To Be Desc Th N 20 Deg 18 Min 09 Sec W 285 Ft Th N 68 Deg 58 Min 08 Sec E 50.08 Pt Th N 19 Deg 56 Min 12 Sec W To Intersect With The Ely R/w L OfNorthern Pacific Rr (now Phalen Blvd) And There Term _ . _, >, :. • , c� � _ ,. � " _. _ . _"' , � D - .. � r" °' - .;. 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