The URL can be used to link to this page

08-286Council File # bg �� Green Sheet # 3050731 �7 Presented by Refesed To RESOLUTION CITY OF SAINT PAUL, NIINNESOTA C � ��_K5"S�ii��.'f� i RESOLUTION PROVIDING FOR THE AMENDMENT OF 2 CERTAIN TAX INCREMENT FINANCING PLANS s BE IT RESOLVED by the City Council (the "Council") of the City of Saint 6 Paul, Minnesota (the "City"), as follows: s Section 1. Recitals io 1.01 The Port Authority of the City of Saint Paul (the "Port Authority") has ii previously established the Industrial Development Districts and Tax Increment Districts iz described on Exhibit A hereto, or is administering such districts if they were originally is established by the City (collectively, the "Districts"); and 14 is 16 i� 1s 19 20 zi 22 23 1.02 Port Authority management has prepared a revised budget for each of the Districts to reflect current projections of tax increment collections and expenditures over the life of each District, all of which are set forth in the proposed amendments; and 1.03 The revised budget for the Great Northern Business Center Phase I(Maxson) includes amendments designed to reflect interfund loans and advances made by the Port Authority in the approximately amount of $2,100,000, and the repayment of such amount with interest at the rate of 5.50% per annum; and za 1.04 The Port Authority has performed all actions required by law to be performed zs priorto the amendment of the Districts, including, but not limited to, notification of Ramsey 26 County and School District No. 625 (which have taxing jurisdiction over the property z� included in such Districts) with respect to the amendments to those Districts that require za such notice under the statute; and 29 30 1.05 A notice of the hearing on the Plan has been published as required by Minn. si Stat. §469.175, Subdivision 3, and pursuant to such notice a public hearing was held by s2 the City Council on March 19, 2008 on the amendment of the Districts as described herein, 33 for those Districts for which City Council approval is required by statute. 34 35 Section 2. Aqproval and Adoption of the Amendments. 36 s� 2.01. The amendments, as presented to the Council on this date, including without ss limitation the findings and statements of objectives contained therein, are hereby approved, 39 ratified, established, and adopted and shafl be placed on file in the office of the Poft m azasz.�, b�� Zgl� 4� 41 42 43 Authority Presidenf. Rursuantto this action, Section 9(a)(iv) of the Joint Powers Agreement aa dated September 1, ZQ00 and previously entered into between the Part Authority and the as City with respect to the Great Northem Business Csnter North (Maxson) Tax Increment 46 District is hereby amended to read "to the payment of the approximately $2,100,000 in a� interFund ioans and advances made by the Port Authority and/or its non-prafit affiliate 48 Capitai City Properties ta pay costs incurred in the develapment of the Tax Increment 49 District, with interest at the rate of 5.50% per annum, as described in the amended budget so and other eligible costs approved by the City. 51 sz 2.02. The staff of the City, the City's advisors and legal counsel are authorized and ss directed to cooperate with the Port Authority with respect to the implementation of the sa amendments and to negotiate, draft, prepare and present to this Gouncil for its 55 consideration all further amendments, resolutions, dacuments and contracts necessary for 56 this purpose. s� ss 2.03. The Port Authority is authorized and directed to forthwith transmit the 59 amendmen#s to the County Auditor in such form and content as the Auditor may speciFy. 60 42882.v1 �� i / • Adopted: Yeas Nays Absent Bostrom ,i Carter � Hazris � Helgen � Lantry ,/ Stazk � Thune ,/ � Requested by Department of. i�lc�r�n,t nc °� �ctl� �rr�.i� _� Lo (� `E�---3 By: Adopted by Council: Date _��,� Adoption Certified by Council Secretary BY� �/7_._. �-�__�.__ � for Submission to Council Approved by 141a r: Date BY �� .41�,.n azssz.�i � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � b� -�£�� , DeparLnentlofficelwuncil: ' Date fnHiated: ; PA -�artAU�a� ;�-�-08 � Green Sheet NO: 3050731 � Assign Num6er For Routing Order 0 ' ' 1 Mawr's OFfice mavor 2 Counril � I 3 �tY Clerk ! Citv Clerk 4 ' ' I 5 Confact Person 8 Phone: Laurie Hansen 224-5686 Must Be on Council qqen. � i�- Doc. Type: RESOLUTION ,(1 I 1 fl � E-DOCUment Required: Y Document Contact: Carol Abbas Contact Phone: 224b686 � � Total # of Signature Pages �(Clip All Locations for Signature) Resoluqon approving the amendment of the budgets of the Great Northern Business Center North (Masson) Tax Increment District, Westminster Tas Increment District, and Williams Hill Tax Increment Financing District and Hazardous Substance Subdistrict. itlations: Approve (A) or R Planning Commission CIB Committee Civil Service Commission 1. Has this person/firm ever worked under a contract for this department? Yes fdo 2. Has this person/firm ever been a city employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any curren[ city employee? Yes (�10 Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, lssues, Opportunity (Who, What, When, Where, Why): These amendments reflect the current projections of taY increment collections and expenditures over the life of each District. Advantages If Approved: The amendments will bring the respective TIk' plans into alignment with current grojecfions of revenue and expenses for each District. In addition, the Joint Powers Agreement for the Masson District will be amended to specifically identify and allow reimbursement of an interfund loan mde to that District by the Port Authority. DisadvanWges If Approved: The existing TIF plan and budgets will not accurately reflect projections of revenue and expenses for each District. Disadvantages If Not Approved: Transadion: Funtling Source: Financial 1 nformation: (E�cplain) CostlRevenue Butlgeted: Adivity Number: March 4, 2008 12:05 PM Page 1 � 0 Y � Q � H � m O _ _ � C W o U w U � N � G N � N N � 0 � c � a � C U C (6 c � c � E � U C X � � � N J �' � N� � � � � E � L a � c � � � �� U , ��'a�'— � � � c m - o " � a� � E c c � �° �� U c a�c,� a�� a`�i � a� Q � �n_ N c6 c � o � � � � �:.. � � �.�? I— � L��s �� m xQ a�� a�Q � � p '� ... c +- o O� � N � � « � � � � � � � C � � N 7 � � � � � U � L � -4 � Cn o 4 c Nm �� N `�c� u� N� � 3 o N .- c � Q � ii Q c � c .� N � 'o s Q � � _ � � � �� °� c� w c�t �° E�� ° c'� m c� m N� Qs_��a�UNQ-N '�cEa��o� � � N � � � '6 i - 6 � '� fn > N � S �+:. Q V - 6 � �-"'ZF-QQ U f6Q �"'>LL � f6 N UlCn4 a1 O O � ,� O O .� O C C � 3 � 3 U7 C � .� � � N � �.- �' = 7 O E�� U O�„ .� p� O�, w� � O' O Y � O� O C �� O 1 � � O N 7 �� U � w U U�� U fA �� N E ��X N w N i�X N� f6 Q �� N � p� 3�-, y O�� U � � o Q� �� Q� E � 0 U c �� U c s� � � � � X=' � � �no�o oc � a� � 'U N 3 � M � (6 � .«. > _ (6 +�-+ ,� � >, �- o a � c o '� � Q � � � a � O � � � LL. � t6 �� C � N �� = L O U Y •� u� E � 3cn 'x o � a� >,� �� a m � N � x � � C O U f6 (6 -Q t� �' � +�.' � +`. o Q s-a c.� ca �� a� c o Q°� Na a�'E a`�i ��c � ... m � � a��i � 3 � �.�� .� � C U' O _C U(6 O � �... � p Q f6 � '6 I- f6 > .� ..Q � .-. (n � tA V U U •� � � Y L L � N N (0 � C � ..�. � p � i � � � N � N 7 C ' C � � �U N p N � o z�� Q U� a — � � o �� o a� •.- � a� �n — � � �� L N L� N c�mao a5� U . L X V � N � C � ~ c�/� � Q � � N i U � � � N "'� C � C U Z f N � C N. � X � � � � U �-- � � � � N � � L.L � c7mz �5ii N � � � � i � � O � N C C(6 �� C C� U N � � 0' r + � � N � C � > Q� � � X� �� N Q N w- C .'C.-� f6 � V� N p O �U � � 7 .� � N O �p'�6 c �= N o�c> '�� p N �D�� c�ii �.-� U� i E�� c�� C'O N � �� S � tn X U � - � 1.L � fa N � (n � O x � O � � O O C �'- � � � "6 C � .� � .� V C (6 O � � � U O ),.o.. � O' p Y N O � O,(6 C ( > � � � U � � � � .� U � � � � � L � � 7 � � � _ � p � � � � N U (6 tn :- � w � � _ � �'U � � � N f C N `� a a� �� —''m�co� o >W 'i �(n E C) �� CA � c Q M � � ❑ � � � O 2� N '� .w � 7 N Q." X� �� i� m U � N O t �� j` � � U A� O O � _ � Q (6 (6 � � C ._ � � U V i +• 'C N � � Q O � L � '6 � � � � � � O � � � U � Q � O �L ^ �^` t� 0 1 W N W � � � > � a C � Y U C '��-, X U � � ~ � O U � _� �'6 �+� � C � (6 U .0 � �U N N .0 N C ,� x C �� U� f�6 tn � (6 (6 � C S ln - 6 � LL - U � � � Q � 7 �Sii mu�c� � i � � i ♦ m v Schedule 1 Dp ��`� o a TIF District Name: GREAT NORTHERN BUSINESS CENTER NORTH - MAXSON PHASEI#122 42840.v1. 2/20/2008 2:57 PM Schedule 2 b � � �� 42840.v1. 2/20/2008 2:57 PM TIF District Name: WESTMINSTER 6USINESS CENTER TIF District 249-0, 249-1 Schedule 3 bg � � p� so 42840.v1. 2/20/2008 2:57 PM TIF District Name: WILLIAMS HILL TIF DISTRICT #198 (OLD 9L, 7M) SAINT PAUL PORT AUTHORI'1`Y MEMORANDUM TO: Board of Commissioners (Meeting of February 26, 2008j Bruce Kessei ) Laurie Hansen � Kenneth R. Joh on��" DATE: i: , _ February 21, 2008 FROM: SUBJECT: PREL1S4111NARY APPROVAL OF AMENDMENTS TO VARIOUS TAX INCREMENT FINANCING (TIF) PLANS AND INTERFUND LOANS RESOLUTION NO. 4254 Action Requested Prefiminary approva! of amendmenfs to various tax increment financing plans and ratification of notices sent to other taxing jurisdictions of the proposed amendmertts and interfund loans and advances. Backaround The Port Authority (Port) has previously established 12 Tax Increment Financing (TIF) Districts. As part of the process of estabiishing a district, a TIF Plan is adopted which includes a budget for the district. The budget includes projections of tax increment coliections, debt to be issued, grants to be received, and other revenue sources. It also includes a detailed listing of eligible expenditures to be made. The TIF Plans and related budgets are usually developed early in the process of acquiring and cleaning up a site. As the project moves fosward, actual and estimated costs to compiete the process change to reflect actual funding sources obtained, and actuai and estimated future costs to obtain proper[y, relocate owners/tenants, monitor and clean up a site. As the development ofi the TIF districts near completion, amendments are frequently required, for a variety of reasons. The amendments may be due to additionaf revenue sources such as increases in grants or loans received, Port Authority gap funding increasing or tax increments greater than originalfy estimated. Amendments may also be needed due to changes in expenditures and other financing uses. If bonds are refunded, bond principa! payments wifl need to be amended. If we encounter unforeseen conditions, amendments will be needed for site improvements and preparation costs. Most of the granfs identified in the initiaf TiF plan and budget are on a reimbursement basis. Stafed another way, the Port usuaily is required to pay a vendor and then seek reimbursement from the funding source, which results in a temporary advance of Part funds. (n addifion, there are times vr✓hen the Port makes a longer term advance, referred to as an inferFund loan, with the expecfation to be repaid as tax increments are received in the future. This type af activity has not always been clearly reflected in the TIF Plans, and as such, rafificafion is recommended to set forth such authority in a clear and concise way. 42885.v1 Board of Commissioners February 21, 2008 Page -2- i� . � State Sfatufes set forth the mechanisms necessary fo modify a TIF Plan. If a mod�cafion does not increase the increment to be coilected or does not increase the amount authorized to be expended, the Port can modify the Plan without notificafion fo ofher taxing jurisdicfions. However, if either of the aforenofed items is to be increased, notification ofi the proposed change is required fo the County and School Disfrict No. 625 (which have faxing jurisdiction aver the property included in our districts), and the City is also required to approve the revised Plan after a public hearing. Ali of the Port's TIF Districts are redevelopment districts, the maximum life of which is set forth in State Statutes at the eariier of 25 years from the coilecfion of the first increment, or when a11 efigible casts have been repaid. The Port has districts that span this entire spectrum: a) Energy Park TIF is in its finai year and at year end reaches ifs stafutory decertificafion date; b) Empire Builder TlF which will have repaid all eiigibie costs in 2008 or early 2009 and witl need to be decertified approximately eight years prior to its statutory life; and c) Giobe TIF and Gri�n TIF which where bofh approved by the Port's Board and the Sf Paul City Councii but have not yet been certified by Ramsey County. For Energy Park TIF, additional analysis needs to be performed to determine how to ai(ocate the remaining funds in lighf of exisfing bond covenants and }'oint powers agreements; once compieted, the related amendment will be presented to the Credif Commiffee and Board at a meeting later this year. Proposa! We propose to the Board the following actions: 1) Preiiminary approvai ofi revisions to the budgets for the Great Northern Business Center - North (Maxson}, Great Northern Business Center - South (Dale Street), Westminster, Wiiliams Hill, Energy Lane, and Westgate Tax increment Districts incfuding interFund loans and advances made or to be made by the Port Authority in anticipation of repayment from fax increments; 2) Rafification of actions previousiy taken to notify the County and Schooi Board and authorization of future administrative actions to effect the proposed amendments fo Greaf Northem Business Cenfer — North, Westminster and Williams Hi�l Tax Increment Districts; and 3) Rafification o# interfund {oans and advances made or to be made by the Port Authority in connection wifh fhe River Bend Tax Increment Financing District; Recommendation We recommend approvai. LJH:amk afiachments 42885.v1 Based upon the amount expended fo date in the Port's various TIF Plans, and the esfimated future cosfs to be expended, if appears prudent to amend some of our Plans. The folfowing is a matrix of the PorPs TIF Plans and proposed action to be taken: OB / ��Revised 2/7/08 Resolution No. 4254 PRELIMINARY RESOLL�I'ION OF THE PORT ALTTFIORITY OF TI3E CTTY QF SAIlVT PAUL PROVIDING FOR THE AMENDMENT OF CERTA]N TAX INCREMENT FRvANCING PLANS WI the Port Aufhority of the City of Saint Pau1 (the "Port Authority"} has previousiy either established the Industrial Develapment Dishicts and '£as Increment Districts described on Exhibit A hereto (collecfively, the Districts'�, or is administering such Districts if they were ori�inally established by the City af Saint Paul (the "Cit��• and > WHEREAS, Port Authority management has advised the Board of Commissioners of the Port Authorzty that certain arnendments to the budgets for each of these Districts should be prepared to reflect current projections of taY increment collectians and expenditures over the life of each District, as described on Elchibit A and to provide for reimbursement of additional eligible costs that had been incurred in the redevelopment ofthe Districts; and WHEREAS, Port Authority management has further advised the Board of Comrnissioners of the Port Authority that certain interfund ioans and advances made or to be made by the Port Authority to the River Bend Tax Increment District should be approved by the Boazd; and WHEREAS, the Port Authority has begun fhe actions necessary to provide appropriate notifications to Ramsey County and School District No. 625 (which have tasing jurisdiction over the property included in such Districts) with respect to the amendments to those Districts thaf require such notice under the statute. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port Authority of the City of Saznt Paul that the proposal to amend the tax increment financing plans for the Districts identified on Exhibit A, or to approve interfund loans and advances made to the River Bend Tax Increment Finaucing Disfrict is hereby approved, and Port Authority management is hereby authorized to proceed with the preparation of detailed plan amendments and budgets, and to provide such additional detail to the Boazd at a future meefing. Port Authority management is further authori2ed to take all otl�er steps required by statute to provide appropriate notification of these proposed amendments and approvals. Adopted: February 26, 2008 ATT ST: ° fts Secret 4334457.1 PORT AUTHORTI'Y OF THE CITY OF SAINT PAUL �7 �� By It � (CE !�L �� a � � 1900 Landmark Towers 345 St. Peter SVeet Saint Paul, Minnesota 55102-1661 P�RT ,v 9 Q � n y r 0 � � 6 S l� February 27, 2008 Ms. CecilE Bedor, Director Pianning and Economic Development City of Saint Paul 1300 City Hal! Annex 25 West 4 Street St. Pauf, Minnesota 55102 Dear . edor: �'� �Tel: 657-224-5686 Fax:651-223-5798 Toll Free: 800-328-5417 www.sppa.com I- , ' � As you kn.ow the Port Authority has created a number of tax increment financing districts over the years, and manages ofhers for PED. As part of our work with these districts, we are suggesting amendments to the budgets of a few of them to bring the budgets into line with current projections of revenues and expenditures. Pursuant to the statute, we need City Council approval for the amendments to the districts identified in the attached proposed resolution. Our Board gave preliminary approval to these amendmenfs on February 26, 2008, and we would iike to scheduie the pubfic hearing to be heid at the City Council for March 19, 2008. We submit for your review and referral to the Offce of the Mayor, City Council and City Attorney's Office a Green Sheet requesting approval of these amendments. As mentianed above, 1 have attached a suggested City Council resofution for your consideration - which includes an exhibit describing the amendments. (n addition to the draft City Counci� Reso4ution, we are also attaching a copy of the Port Authority stafF memorandum and Board resolution approving the amendments. Piease let me know if there is anything further that you need from us at this point, or if you would like to discuss this further. It is good to get this started, so fhanks for being diligent, and your expeditious handling of this matter is appreciated. Sincerely, J Encl. cc. Laurie Hansen Lorrie Louder Bob Geurs Matt Smith Sheri Pemberton-Hoiby _.n,, �,..�,�...,.�., _ _ _ , ��_��,u_._. _ - Kenneth R.Johnson President 42881.v1