08-1015Amended 9/10/2008 WITHDRAWN 12/23/08 Council File #��� ��
Green Sheet # 3058436
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA C J �
L�i
By:
Approved
By:
1 WHEREAS; t�e HRA in 08-7/23-6 took necessary actions, including an III2A Budget Amendment (see Attachment A), to close
2 and decertify th�Downtown and Seventh Place TIF District #82; and
3
4 WI�REAS, as a p f closeout the City agrees to budget the fmal payment from the HRA under the City Subordinated Tas
5 Increment Note as follo s; and
6
7 WHEREAS, the Mayor pws ant to Section 10.07.1 of the Charter of the City of Saint Paul, does certify that there aze available for
8 appropriation funds of $3,769, 9.15 in excess of those estimated in the 2008 budget; and
9
10 WIIEREAS, the Mayor recommen
11
12 City Downtown Capital Projects
13
14
15
16 Financing Plan
that the following addition be made to the 2008 budget:
17 149-76902-9830-00000 Undesignated Fund B�ar
18 \
19 Spending Plan
20 149-76901-0299-69106 Project Adminish
21 149-76901-0547-69107 Local Match Block 4
22 149-76902-0558-00000 Transferto HItA General
23 Fund Balance for PED
24 Future Operations
25
26
27
28
29 Bttrl�tfttrnose-ie�eerreet�BBBtee{:nreal-buc
30 �I��
(Amendment on page 2)
Current
Bud¢et Chan2es
$ - $3.769,579.15
$ - $1,000,000.00
� 75,500.00
2.694,079.15
$ - \ $ 3,769,57915
Amended
Bud¢et
$3,769,57915
$I,000,000.00
75,500.00
2.694.079.15
$3,769,579.15
of:
Adopted by Council: Date q�j��/J�
Adoption C�e�rtified by Cy-uncil Secretary
BY� // //l'iJi`f nr�CStJ/7
Approved by Ma r: Date
By:
Office of
Approved by A
B
Approved by Mayor
BY� l l �i�3 G ,
to Council
o�-ro�� �
HOUSING AND REDEVELOPMENT AUTHORITY �
OF THE CITY OF SAINT PAUL, MINNESOTA
REPORT TO THE COMMISSIONERS DATE: JULY 23, 2008
REGARDING: APPROVING ACTIONS NECESSARY TO CLOSE OUT AND DECERTIFY THE
DOWNTOWN AND SEVENTH PLACE TIF DISTRICT (#82)
Purpose
Staff is requesting the IIRA Board of Commissioners to approve the following actions to close
out the existing Downtown and Seventh Place Tax Increment Financing District — No. 32
(District) TIF District (#82) by August 31, 2008 in order to create a new 15 year downtown TIF
district pursuant to a special law enacted in the last iVIinnesoYa legislative session (see Exbibit A
— 2008 Special Law):
Declare to dissolve and decertify the District; and
2. Remit excess tax increment to Ramsey County subsequent to decertification of the
District; and
3. Direct the Executive Director to submit the approved attached resolution to this report
to the County Auditor of Ramsey County and take other steps to close out fhe
District; and
4. Amend the 2008 HRA budget to reflect the above resulting actions.
Background
The 30 year District (see Exhibit B— TIF Nlap) was originally created in the fall of 1978 in order
to undertake a multitude of public inveshnent in the downtown Saint Paul. Examples of projects
that benefited from the District are the World Trade Center (Wells Fazgo Ylace), Children's
Museum, Lawson and the Wabasha Streetscape project. From 1979-2007 the District has
generated over � 180 million in tax inerement enabiing over $477 million in public investment.
In order to fmancially close out the District three existing debt obligations must be retired and
all excess tax increments must be remitted to the Ramsey County Auditor for reallocation to the
taY jurisdictions according to State law (see Eachibrt C— Summary of Remaining Revenues and
Public Redevelopment Costs). In compliance with State law the HRA will send to Ramsey
AA-ADA-EEO Employer
b�-/�l�'
County �2,190,056 in September 2008.
The City's estimated $1,647 shaze comes from ttivo parts:
• Excess tax increment payment (5945,708); and
• T`he second taac increment collection (5701,819).
See E�ibit D2 for a detail explanation as to how the above numbers were calculated.
HRA Budget Amendment
The proposed budget amendment accomplishes the following:
• The HRA remitting the $2,190,056 of excess TIF to the County.
• The HRA makes its final payment $3,769,579 to pay off City Subordinated TLF note.
(see Exhibit D and Attachment A to the budget resolution).
Other Actions
On August 6, 2008 after a public hearing, the City Council will act on a budget amendment
($3,769,579) to close out the District as follows:
•$2,694,079 will go for future PED operaYions (December 2007 est. $2,442,283, see
Exhibit Dl).
•$1,000,000 to correct 2008 budget for PED operations.
•$75,500 for Iocal match for Minnesota Mutual (Securian) Block 4 TIF note.
Recommendation
The Executive Directar and staff recommend approval of the attached resolution to:
1. Declaze to dissolve and decertify the District; and
2. Remit excess tax increment to Ramsey County subsequent to decertification of the
District; and
3. Direct the Executive Director to submit the approved attached resolution to this report to
the County Auditor of Ramsey County and take other steps to close out the District; and
4. Amend the 2008 HRA 6udget to reflect the above resulting actions.
Sponsored by: Chair Dave Thune
Staff contact: Al Carlson, 266-6616, PED and Bob Geurs, 266-8837, OFS
AA-ADA-GLO Employer
ATfACHMENT A /�
��' �U��
The HRA Board af Commiuioners approve the butlget amendment to the Year 20U8 HRA Budget
DOWNTOWN AND SEVENTH PLACE TAX INCREMENT DISTRICT #82
HRA General Debt Service Fund
Downtown Tax Increment Refunding Bonds
Financing Plan
"139-86334-1030
'139-86334-66Q2
139-86334-6927
139-86334-7306
139-86334-9830
Spending Plan
139-86334-0521
139-89334-0611
139-89334-0621
139-86334-0547
139-86334-0799
TaxlncrementRevenue
lntereston Investments
Other Agency Share of Cost
Transfer From Capital Projects Fund
Use of Fund Balance
Refunds
Interest Paymeni on Tax Inc. Bonds
Rehrement of Tax Increment Bonds
Refund to Ramsey County of Excess
Tax Increment Revenue -
Decertiication of TIF District
Intrafund Transfer Out To City
TIF Subordinated Note
Downtown Subordinated Revenue Note (B)
Financing Plan
139-86343-7499
Spending Plan
139-86343-0565
Intrafund Transfer In to Pay City
TIF Subortlinated Note
Transfer to City Downtown Capital
Project Fund 149 Undesignated
Fund Balance
Current Amended
Budget Changes Budget
2,347,344 763,111 3,110,455
46,377 26,800 (A) 73,177
- 20Q000 200,000
57,355 190,000 247,355
6,51'1,605 ("138 677) 6 372 928
8,962,681 1,041,234 1 Q,003,915
997,195 (997.195)
207,703 6,576
3,S3Q�a� -
- 2,190,057
214,279
3,830,�00
2,190,057
3,927,783 (158,204) 3,769,579
8,962,681 1,041,234 10 003,915
3,517,783 251,796
3,517,783 251,796
3,769,579
3,769,579
(A) Investment earnings prior to the remittance of excess increment to Ramsey County will be added to the cioseout
amounLs and is hereby authorized.
(B) On August 6, 2008 a City of Saint Paul Budget Amendment wiil split the$3,769,579 into $1,000,000 for PED
opera4ons 2008; $75,500 for Bfock 4 Local Match; $2,694,079 for future PED operations
'* ' Green 5hee2 Greati SheeY G;een Sh�eY Green Shest Green �heet Green Shee#
�''� I�
PE - Planning & Economic Development � 79-AUG-08
Contaa Person & Phone:
Jerry Falksen
6-663I
Must Be on Council Agenda
10-SEP-0B {1.i..�,
Doc. Type: RESOLUTION
E-Document Required: V
�ocument Contact: Denise
ConWCt Phone: 6-6700
y
Assign
Number
For
Routing
Order
Total # of Signature Pa9es �(Clip AII Lowtions for Signature)
Green Sheet NO: 3058436
Department Sent To Person Initial/Date
U la ' E& Eco�oui c De S p PED A fi¢ ��,��'
c
1 lannin & Economic Develo me De artment Director 7
2 iN Attorne Ci Attorne �
3 inanciai Services mancial Services Direc �
4 a or's Office Ma or's Office �
5 ouncil Ci Council
6 Cierk G5 Clerk
Approval of attached resolution amending the 2008 budge[ for the City Downto»m Capital Projects fund to comect for budget erzor,
provide local match, and money for future PED opera[ions.
�.tlatfons: Approve (A) or KeJect (K)' Personal Servlce Gontracts must Answer tne Yoilowmg @uestlons:
Planning Commission 1. Has this personffirm ever worked under a contract for this department?
CIB Commiitee Yes No
Civil Service Commission 2. Nas this persoNfirm ever been a cily employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
current city employee?
Yes No
Explain ail yes answers on separate sheet and attach to green sheet
Initiating Prob�em, Issues, Opportunity (Who, What, When, Where, Why):
Correction of 2008 budget eaor, and need for a tocal match for Block 4 TIF note and money for future PED operations
Advantages if Approved:
Funds would be provided to complete project administration, meet local match, and aid in suppoR of futwe PED operations.
Disadvantages If Approved:
NONE
Disadvantages If Not Approved:
Fund 149 will be over budget, and other sources of revenue would have ro be found for local maTCh and PED operations.
Transaction: $3,769,579.15
Funding Source:
Finan cial I nfortnation:
(Expiain)
CosURevenue Budgeted: Y
Activity Number: �6902
August 20, 2008 12:50 PM
Page 9
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