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10-515Council File # 10-515 Green Sheet # 3109798 RESOLUTION CITY��S�INT)k�AUL, MINNESOTA � 7 Presented by RESOLUTION NO. RESOLUTION APPROVING THE ESTABLISHMENT OF THE CARONDELET VILLAGE REDEVELOPMENT PROJECT AREA AND THE CARONDELT VILLAGE TAX INCREMENT FINANCING DISTRICT AND APPROVING A REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS, the City Council of the City of Saint Paul (the "Council") has the statutory responsibility under Minnesota Statutes, Sec[ion 469A28, to approve redevelopment plans and projects of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), after public hearing thereon; and WHEREAS, Minnesota Statutes, Section 469175 requires that before a county auditor may certify a tax increment financing district created under Minnesota Statutes, 5ection 469.174 to 469.1799 (the "Tax Increment AcY') the governing body of the municipality must approve the tax increment financing plan after a public hearing thereon; and 9 WHEREAS, the HRA proposes to undertake the Carondelet Village Redevelopment Project (the 10 "ProjecP'), and has submitted to the Council a redevelopment plan (the "Redevelopment Plan") therefor; 11 and 12 WHEREAS, said Redevelopment Plan contains an identification of need and statement of 13 objectives and program of the HRA for carrying out of a redevelopment project, including property to be 14 acquired, public improvements to be provided, development and redevelopment to occur, and sources of 15 revenue to pay redevelopment costs of the Project; and 16 WHEREAS, the Saint Paul Planning Commission has reviewed the said Redevelopment Plan, and 17 approved the same as being in conformity with the Saint Paui Comprehensive Plan and the general plan for 18 the development and redevelopment of the City as a whole; and 19 WHEREAS, the HRA has asked the Council to approve the creation, within the Project Area, of a 20 TaY Increment Financing District as a redevelopment taac increment financing district under Minnesota 2] Statutes, Section 469.174, Subdivision 10 (the "Tas Increment Financing DistricY'), and the adoption of a 22 Tas Increment Financing Plan (the "Tax Increment Financing Plan") therefor, all pursuant to and in 23 accordance with the Tax Increment Act; and 24 WHEREAS, the HRA has performed all actions required by 1aw to be performed prior to the 25 creation of the Ta�c Increment Financing District and adoption of the Tas Increment Financing Plan 26 therefor, including, but not limited to, notification of the Ramsey County Commissioner representing the 27 area of the County in which the Tax Increment Financing District is located, and delivering a copy of the io-sis 28 TaY Increment Financing Plan to Ramsey County and Independent School I3istrict Number 625, which 29 have taxing jurisdiction over the properry to be included in the Tax Increment Financing District; and 30 WHEREAS, on this date, the Ciry Council conducted a public hearing on the Redevelopment Plan 31 and Tas Increment Financing PIan, after published notice thereof; and 32 WHEREAS, at said public hearing the City Council heazd tesfimony from all interested parties on 33 the Redevelopment Plan and Tax Increment Financing Plan; and 34 WHEREAS, the City Council has considered the findings and determinations of the Saint Paul 35 Planning Commission and the HRA respecting the Project, Redevelopment Plan, Tas Increment Financing 36 District and Tax Increment Financing Plan, together with the documentation submitted in support of the 37 same and has taken into account the informatlon and knowledge gained in hearings upon and during 38 consideration of other matters relating to the developments proposed for the Project. 39 Section l. Approval of Redevelopment Pian. 40 1.01 It is hereby found and determined that the undertakings and site of the Project, as described 41 in the Redevelopment Plan constitutes a"redevelopment project" within the meaning of Minnesota 42 Statutes, Section 469.002, Subdivision 14. It is hereby found and determined that the land in the Project 43 Area would not be made available for, nor would redevelopment be financially feasible without the public 44 improvements and the financial assistance proposed for the Project. It is hereby found and determined that 45 the Redevelopment Plan will afford maximum opportunity, consistent with the sound needs of ihe locality 46 as a whole, for the redevelopment of such area by private enterprise. It is hereby found and determined 47 that the Redevelopment Plan conforms to the Saint Paul Comprehensive Plan and the generai plan for the 48 development of the locality as a whole. 49 1.02 The Redevelopment Plan is hereby approved as in the public interest and as necessary in SQ order to carry out the development and redevelopment of the Project Area In accordance with the 51 objectives and purposes in said Redevelopment Plan provided thereby to eliminate the conditions identified 52 in said Redevelopment Plan and accomplish the provision of pubiic improvements and private 53 developments contemplated by said Redevelopment Plan in the furtherance of the general welfare of the 54 citizens of Saint Paul. 55 Section 2. Findings for the Creation of the Carondelet Villa¢e T� Increment Financing 56 District and Ado�tion of a Taa� Increment Financina Plan therefor. 57 2.01 The City Council hereby finds that the creation of the Carondelet Village Taac Increment 58 Financing District and adoption of the Tax Increment Plan therefor, are intended and, in the judgment of 59 the City Council, its effect will be, to carry out the objectives of the Redevelopment Plan and to create an 60 impetus for the redevelopment of blighted structures and the construction of senior housing and healthcare 61 facilities, and will otherwise promote certain public purposes and accomplish certain objectives as 62 specified in the Redevelopment Plan and Tax Increment Financing Plan. 63 2.02 The City Council hereby finds that TaY Increment Financing District qualifies as a 64 "redevelopment districP' within the meaning of the Tax Increment Act for the following reasons 10-515 65 The Tax Increment Financing District is, pursuant to Minnesota Statutes, Section 66 469.174, Subdivision 10(a)(1), a"redevelopment districY' because it consists of a project or 67 portions of a project within which the following conditions, reasonably distributed 68 thronghout the District, exist: (1) parcels consisting of at least 70% of the area of the 69 District are occupied by buildings, streets, utilities, paved or gravel pazking lots, or other 70 sunilaz structures; and (2) more than 50% of the buildings located within the T� Increment 71 Financing District aze "structurally substandazd" (within the meaning of Minnesota Statutes, ?2 Section 469.174, Subdivision 10(b)) to a degree requiring substantial renovation or 73 clearance. 74 The District consists of one parcei, and the parcel is "occupied" as defined in 75 Minnesota Statutes, Section 469.174, Subd. 10(a)(1), in that at least 15% of the area of the 76 parcei, is occupied by buildings, streets, utilities, paved or gravel parking lots, or other 77 similar shuctures. There is one building in the T� Increment District, which building is 78 structurally substandard to a degree requiring renovation or clearance. In addition, the costs 79 of bringing the structurally substandard building into compliance with building codes 80 applicable to new buildings would exceed I S% of the cost of constructing new stnzctures of 81 the same size and type on the site. 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 The supporting facts for these determinations are on file with the staff of the Authority and include but are not limited to the report of Alden Associates Architectural Services dated October 19, 2009. 2.03 The City Councii hereby makes the following additional findings: (a) The City Council further finds that the proposed development, in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: The property on which housing development will occur would not be developed in the reasonably foreseeable fizture because it currently contains a blighted huilding that has been underutilized far many years. CV Senior Housing, LLC has represented that the development is not feasible without tax increment assistance. (b) The City Council further finds that the Tas Increment Financing Plan conforms to the general plan for the development ar redevelopment of the City as a whole. The specific basis for such finding being: The Tas Increment Financing Plan wi11 generally compliment and serve to implement policies adopted in the City's comprehensive plan. The housing and healthcare development contemplated is in accordance with the existing zoning for the property. (c) The City Council further finds that the TaY Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the Cily as a whole for the development of the Ta:c Increment Financing District by private enterprise. The specific basis for such finding being: 10-515 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 ll9 120 121 The proposed development to occur within the Taa� Increment Financing District is housing and healthcare. The development will increase the taxable mazket valuation of the City. The available housing in the city will be expanded by approximately 149 independent housing units, 46 assisted rental housing units and 19 memory care units with the completion of the development contemplated by the Tax Increment Financing Plan. (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2), the City Council hereby finds that the increased market value of the property to be developed within the Ta�c Increment District that could reasonably be expected to occur without the use of tax increment financing is $0, which is less than the mazket value estimated to result from the proposed development (i.e., $33,165,280 after subtracting the present value of the projected t� increments for the m�imum duration of the TaY Increment Financing District (i.e, $4,440,814). In making these findings, the City Council has noted that the property has not been redeveloped for many years and wouid likely remain so if tax increment financing is not available. Thus, the use of tax increment financing will be a positive net gain to the City, the School District, and the County, and the tax inorement assistance does not exceed the benefit which will be derived therefrom. (e) The provisions of this Section 2 are hereby incorporated by reference into and made a part of the Tax Increment Financing Plan. 122 Section 3. Creation of the Carondelet Villa�e Tax Increment Financing District and Ap�roval 123 of the Taac Increment Financing Plan therefor. 124 3.01 The creation of the Carondelet Village Tax Increment Financing District and the Tax 125 Increment Financing P1an therefor are hereby approved. 126 127 128 129 130 131 3.02 The staff of the HRA and the HRA's advisors and legai counsel are authorized and directed to proceed with the implementation of the Tas Increment Financing District and the Tax Increment Financing Plan and for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of the HRA for its consideration all fixrther plans, resolutions, documents and contracts necessary far this purpose. Bostrom Carter Hanis Stazk Thune Yeas � � Approved by .Affc f Financial Se ices �,` ✓ By: � Adopted by Council: Date ��/�/ jaD/!� Adoption Certified by Counc' Secretary By: � Approv y Date � Z� �� By: Form Appr ve . Ci ey By: Form Ap rove M r for u ssion t Council By: 10-515 � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � oe,���„���,�ou��,4. oate�n,ti�. Green Sheet NO• 3109798 PE —Planning & Economic O6 MAY 2010 . Devetopment Contact Person 8 Phone: Deoartment � Sert Tu Person InitiallDate JoanTNisen 0 ' &EcoaomicDevelo m [� 6-6694 1 lannm & Economic Develo m Allen Carkon '� Assign 2 - &EconomicDevelo m De artmentDirector _�? — Must Be on Council Agenda by (Date): Number =� 19-MAY-10 For 3 a¢cial Services Dirtttor Roufing 4 a or's Office Ma or/Assistant Doc. Type: PUBLIC HEARWG Order 5 omc� — (RESOLUTION) E-Dowment Required: F Y Oocument Gontact: � CoMact Phone: I ��� T , S Total # of Signature Pages _(Cfip All Locations for Signature) Action Requested: Signatures on Resolution for the establishment of a TIF District for the Cazondelet Village Project. District IS Recommendations: Approve (A) or Reject {R): Personal Service CoMracts Must Answer the Following Questions: Planning Commission 1. Has this personlfirm ever vmrked under a contrad for this department? CIB Committee Yes No Civil Service Commission 2. Has this persoNfirm ever been a city employee? Yes No 3. Does this person/firtn possess a skill not normally possessed by any . currentcityemployee? Yes No � Explain all yes answers on separate sheet and attach to green sheet. Initiating Problem, lssues, Opportunity (Who, Whay When, Where, Why): The St Joseph Sis[eis of Cazondelet and Presbyterian Homes in par[nerslrip will conshvct a senior campus including 259 units and an Integrated Service Centet that will be semi public. They have a funding gap and have requested the City to establish a TIF district to help fill the gap. A Public Hearing notice was published in the Pioneer Press. AdvanWges IfApproved: TIF Funds (pay go note) will be avai]able for the development of the project. Dlsadvanteges If Approved: None �isadvanWges If Not Approved: • Funds will not be available. Total Amount of CosNRevenue Bud eted: Tre�adion: 9 Funding Source: Activity Num6er: � Financiailnformation: - (Explain) May 6, 2010 7:43 AM Page 1 10-515 TAX INCREMENT FINANCING PLAN for the establishment of the CARONDELET VILLAGE TAX 1NCREMENT FINANCING DISTRICT (a redevelopment district) HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL RAMSEY COUNTY STATE OF MINNESOTA Approved by City Council: May 19, 2010 Adopted by Authority: May 26, 2010 This document was drafted by: KfiNNEDY & GRAVEN, CHARTERED (MMD) 470 U.S. Bank P1aza 200 South 6�' Street Minneapolis, MN 55402 612)337-9221 366951v3 MMD SA130-121 io-sis TABLE OF CONTENTS (for reference purposes only) � TAX INCREMENT FINANCING PLAN FOR THE CARONDELET VILLAGE TAX INCREMENT FINANCING DISTRICT Paee .... 1 .... l .... 1 .... 2 .... 2 .... 2 ..... 3 Area ........................................................................................................................ 3 Section 9. Estimated Cost of Project; Taat Increment Financing Plan Budget ....................... 3 Section 10. Estimated Amount of Bonded Indebtedness .......................................................... 3 Section 11. Sources of Revenue ................................................................................................ 3 Section 12. Estimated Captuted TaY Capacity and Estimate of Tax Increment ....................... 4 Section 13. Type of Tax Increment Financing District ............................................................. 4 Section 14. Duration of Ta�c Increment Financing District ....................................................... 4 Section 15. Altemate Estimates of the Impact of the Tax Increment Financing on the Net Taa� Capacities of All Taa�ing Jurisdictions ..................................................... 4 Section 16. Modification of Tax Increment Financing District andJor Tax Increment FinancingPlan ....................................................................................................... 5 Section 17. ' Modifications to Taac Increment Financing District ............................................... 5 Section 18. Administrative Expenses ....................................................................................... 6 Section 19. Use of Taac Increment ............................................................................................. 7 5ection 20. Notification of Prior Planned Improvements ......................................................... 8 Section 21 Excess Tax Increments .......................................................................................... 8 Section 22. Requirements for Agreements with Developers .................................................... 8 Section 23. Other Limitations on the Use of Tax Increment .................................................... 9 Section 24. County Road Costs .............................................................................................. 10 Section 25. Assessment Agreements ...................................................................................... 10 Section 26. Administration of the Tax Increment Financing District ..................................... 10 Section 27. Financial Reporting Requirements ...................................................................... i l Section1. Foreword ........................................................................................................... Section 2. Statutory Authority ........................................................................................... Section 3. Statement of Objectives .................................................................................... Section 4. Redevelopment Plan Overview ......................................................................... Section 5. Parcel to be Inciuded in TaY Increment Financing District .............................. Section 6. Parcels to be Acquired ...................................................................................... Section 7. Development Activity in Tax Increment Financing District for which Contracts have been Signed .............................................................................. Section 8. Other Specific Development Expected to Occur within Redevelopment EXHIBIT A TaY Increment Financing Plan Budget .............................................................. A-1 EXHIBIT B Projected Taac Increments .................................................................................. B-i EXHIBIT C Fiscal and Economic Impact on Other Taxing Jurisdictions ............................. C-1 EXHIBIT D Map of T� Increment Financing District ......................................................... D-1 366951v3 MMD 5A130-121 -I- 14-515 TAX INCREMENT FINANCING PLAN FOR THE CARONDELET VILLAGE TAX INCREMENT FINANCING DISTRTCT Section 1. Foreword. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), and its staff and consultants have prepared the following information for the establishment of a redevelopment taai increment financing district (the "Tax Increment Financing DistricY'). The Tax Increment Financing District is located within the Cazondelet Village Redevelopment ProjecY Area established by the HRA contemporaneously with the establishment of this Tax Increment Financing District (the "Redevelopment Project Area"). Section 2. Statutory Authority. There eYist areas within the City of Saint Paul, Minnesota (the "City") whete public involvement is necessary to cause development to occur. To this end, the HRA has certain statutory powers pursuant to Minnesota Statutes, 5ection 469.001 to 469.047 (the "HRA Law") and Minnesota Statutes, Section 469.174 through 4691799 (the "Tax Increment Financing AaY' or "TIF Act"), to assist in financing public costs related to a redevelopment project. Section 3. Statement of Obiectives. The Tax Increment Financing District consists of approximately 6 acres and adjacent and internal rights-of-way. The Tax Increment Financing District is being created to facilitate the demolition of a substandard building and consriuction of senior housing and healthcaze facilities, including relating structured parking (collectively, the "Project"). The tax increment financing plan is expected to achieve the objectives outlined in the Redevelopment Plan for the Redevelopment Project Area by the construction of high density housing. The following are some of the objectives being facilitated by the Tax Increment Financing Plan. A. Provide Housing and Healihcare Facilities for Saint Paul Residents. The available housing for residents in the Project Area will be expanded when approximately 149 independent housing units, 46 assisted living rental housing units and 19 memory cate units are constructed. The development will also include approximately 45 skilled care nursing home beds. B. To Redevelop Underused Proopertv. The Tas Increment Financing District contains one building that is structurally substandard. In order to encourage new development in the area, and remove and prevent the emergence of blight and blighting influences, tax increment financing must be used to encourage the redevelopment of the site. C. Ex�and the Tas Base of the Cit�of Saint Paul. It is expected that the taxable market value of pazcels in the Tax Increment Financing District will increase by approximately $27,801,310 as a result of the new development. The activities contemplated in the Redevelopment Plan and this Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. 366951v3IvL4ID SA130-121 10-515 These activities are anticipated to occur over the life of the Tas Increment District and the Redevelopment Project. 5ection 4. Redevelo�ment P1an Overview. Properiy to be Acquired — The HRA does not intend to acquire any properry in the TaY Increment Financing District. 2. Relocation - if necessary, complete relocation services are available pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. The HRA may seli or assist a private developer with the cost of acquisition of properties within Taz Increment Financing District, or may lease land or facilities to a developer. Section 5. Parcel to be Included in Tax Increment Financin� District. A portion of the following pazcel located in the City of Saint Paui, Ramsey County, Minnesota, is to be included in the Tax Increment Financing District. The parcei will be subdivided into two or more parcels, oniy one of which will be in the TaY Increment Financing District. PID Number 09-28-23-31-0009 Including all interior and adjacent public streets and rights of way. A map showing the property to be included in the Tax Increment District is attached hereto as E�ibit D. FURTHER INFORMATION REGARDING THE IDENTIPICATION OF THE PARCEL TO BE INCLUDED IN THE TAX INCREMENT FINANCING DISTRICT CAN BE OBTAINED FROM THE EXECUTIVE DIRECTOR OF THE HRA. Section 6. Parcels to be Acc� red. The HRA may finance all ar a part of the costs of acquisition of all or a portion of the parcels identified in Section 5 of ttris Tax Increment Financing Plan. The HRA may also acquire pazcels in the City which are outside the Tax Increment District in arder to encourage the development of affordable rental housing facilities as anticipated by Section 23, paragraph 4 hereof. Prior to acquiring any pazcels with t� increments in excess of the percentages permitted by Minnesota Statutes, Section 469176, Subd. 5, the HRA will enter into an agreement with a private developer far the development of the parcels which will provide recourse to the HRA if the development is not completed. The HRA may use its powers of eminent domain to acquire parcels which it cannot obtain through private negotiation. The HRA may acquire propefty by gift, dedication or direct purchase from willing sellers in order to achieve the objectives of the tax increment financing pian. 366951v3 MMD SA130-121 10-515 Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Section 7. Development Activit�n Tax Increment Financin� District far which Contracts have been Si ng_ed. The following contracts have been or will be entered into by the IIRA and the persons named below: A Development Agreement by and between the HRA and Carondelet Village LLC, a Minnesota limited liability company, has or will be entered into in connection with the development of the senior housing and heaithcare facilities described in Section 3 hereof (the "Development"). The total development costs aze estimated to be approximately $60,000,000 and the development is expected to be substantially completed by December 31, 2011. Section 8. Other Specific Development Expected to Occur within Redevelopment Area. The HRA does not anticipate that other future development in the Taac Increment Financing District will occut. Section 9. Estimated Cost of Project; Tax Increment Financing Plan Budget. The HRA has determined that it will be necessary to provide assistance for certain public costs of the Development. To facilitate the Development within the Tas Increment Financing District, this Tax Increment Financing Plan authorizes the use of tax increment financing to pay for a portion of the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with Tax Increment �inancing District is outlined on Exhibit A. The HRA may spend tax increments or other revenues identified in Section ll hereof in other areas of the City. Any expenditure of tax increments Qutside the Tazt Inctement District will comply with the pooling limitations described under Section 23, paragraph 2, as modified by paragraph 4 thereof. Estimated costs associated with Tax Increment Financing District are subject to change and may be reallocated between line items by a resolution of the I�RA. The cost of all activities to be financed by the t� increment will not exceed, without formal modification, the budget for the t� increments set forth on E�aibit A. Section 10. Estimated Amount of Bonded Indebtedness. The expenditures authorized by this Tax Increment Financing Plan may be paid either on a pay-as-you-go basis or paid from the proceeds of tax inctement revenue bonds or notes. If bonded indebtedness payable from tas increments is issued by the HRA or the City, the principal amount is estimated not to exceed $4,000,000. The HI2A has or will issue conduit revenue bonds or the Development pursuant to Minnesota Statutes, Chapter 462C. The estimated principal amount of those revenue bonds is $55,000,000. Section 11. Sources of Revenue The costs outlined in Section 9 above will be financed on a pay as you go basis through the annual coilecUon of tax increments. Other sources of revenues to pay the costs include private financing obtained by the private developer. The market value upon completion of the Project in 2012 is estimated to be approximately $29,280,000. 366951v3 MbID SA130-121 3 10-515 Section 12. Estimated Captured Ta�c Ca�acit_y and Estimate of Tax Increment. The property in the Tas Increment District is currently taac exempt. If the property were taYable, the HRA estimates the current taY capacity of the portion of the parcel to be included in the Taac Increment Financing District would be approximately $41,000. The captured tas capacity of Taac Increment Financing District, at the completion of the construction of the Development which is estimated to occur by January 2, 2012, is estimated to be $325,000. The IIRA elects to retain all of the captured tas capacity to finance the costs of Tas Increment Financing District. The HRA elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subd. 3(a). Section 13. TvDe of Tax Increment Financin�District. TaY Increment Financing District is a redevelopment district estabiished pursuant to Minnesota Statutes, Section 469174, Subd. 10, clauses (a)(1) and (a)(3). The TaY Increment Financing District will contain 1 pazcel. The parcel is "occupied", as defined in Minnesota Statutes, Section 469.17�4, Subd. 10(a)(1), in that at least 70% of the area of the pazcel is oacupied by buildings, streets, utilities, paved or grauel parking lots or similar structures. In addition, there is only one building located in the TaY Increment Financing District. The building is "structurally substandard" to a degree requiring substantial renovation or clearance. The "structurally substandard" building is not in compliance with the building code applicable to new buildings, and the costs of modifying such building to satisfy the building code is more than 15 peroent of the cost of constructing a new structure of the same square footage and type on the site. The reasons and support facts for these determinations are set forth in a report dated October 19, 2009, prepazed by Alden Associates Architectural Services in Cedar, Minnesota, a copy of which is on file with the Executive Director of the HRA. The HRA and the City have determined that the proposed development of the Tax Increment Financing District would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subttacting the present value of the projected tax incxements for the maximum duration of the Tax Increment Financing District permitted by the Tax Increment Financing Plan. Section 14. Duration of Taac Increment Financin� District. The duration of Tax Increment Financing District will be 25 years from the receipt of the first tax increment. The Authority elects to first receive increment in 2013. Attached as Exhibit B is the projected receipt of tax increments from the Tas Increment Financing District. Section 15. Alternate Estimates of the Impact of the Tax Incxement Financing on the Net Tax Capacities of Ail Taxina Jurisdictions. The impact of the Tax Increment Financing District on the Taxing Jwisdiction is set forth on Exhibit C. On the alternate assumption, that none of the estimated captured taY capaciry would be availabie to these taxing jurisdictions without the District, there would be no effect on the other taxing jurisdictions, but upon the expiration or earlier termination of this portion of the Tas 366951v3 Yt[vID SA13a-121 io-sis Increment District, each taxing jurisdiction's ta�c capacity would be increased by the captured taY capacity, as it may be adjusted over that time period. The estimated amount of tax increment that will be generated over the life of the Tax Increment District is appro�nately $10,652,985 assuming inflation of 1% in years 2019 through 2024. The esUmated amount of ta�c increment attributable to the School District and County levies is estimated to be approximately $2,513,531 and $4,097,724 respectively. It is not expected that the Tas Increment District will have any impact on the need for new or improved public infrastructure, other than the infrastructure paid for by tax increments or from other public and private funds currently appropriated. The impact on City provided services such as police and fire protection are anticipated to increase only slightiy as a result of the Tax Increment District since the Development is for seniors. The Authority will provide any additional infrasriucture requested by the County or Schaol District. Section 16. Modification of Tax Increment Financing District and/or Taz Increment Financin�Plan. No modifications to T� Increment Financing Disrtict ox the Tax Increment Financing Plan have been made as of the date hereof. Section 17. Modifications to Tax Increment Financinp District. In accordance with Minnesota Statutes, Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic azea of the Tax Increment Financing District; 2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by ihe HRA; increase in total estimated tax increment expenditures; or designation of additional property to be acquired by the HRA, shall be approved upon notice and after the discussion, public hearing and findings required for approval of the original Tax Increment Financing Plan. The geographic azea of the Tas Increment Financing District may be reduced, but shail not be enlarged after five years following the date of certification of the originai net tax capacity by the County Auditor. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the T� Increment Financing District, and (2)(A) the current net tas capacity of the parcel(s) eliminated from the Tas Increment Financing District equals or exceeds the net taai capacity of those parcel(s) in the Tax Increment Financing DistricYs ariginal net ta�c capacity, or (B) the HRA agrees that, notwithstanding Minnesota Statutes, Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net taY capaciry of the parcel(s) eliminated from the Tax Increment Financing District. 366951v3 MMD SA130-121 10-515 The I-IRA must notify the County Auditor of any modification that reduces or enlazges the geographic azea of the Tax Increment Financing District or the Redevelopment Project Area. Modifications to Taz Increment Financing District in the form of a budget modification or an expansion of the boundaries will be recorded in the Tax Increment Financing Plan. Section 18. Administrative Expenses. In accordance with Minnesota Statutes, Section �69.174, Subd. 14, and Minnesota Statutes, Section 469.176, Subd. 3, administrative expenses means all expenditures of the HRA, other than: amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the disrtict; 2. relocation benefits paid to or services provided far persons residing or businesses located in the district; or 3. amounts used to pay interest on, fund a reserve for, or seli at a discount bonds issued pursuant to Minnesota Statutes, 5ection 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tas increment may be used to pay any authorized and documented administrative expenses for the Tax Increment Financing District up to but not to exceed 10 percent of the total taat increment expenditures authorized by this Tax Increment Financing Plan or the total tax increment expenditures, whichever is less. Pursuant to Minnesota Statutes, Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the Taac Increment Financing District. The county may require payment of those expenses by February IS of the year following the year the expenses were incurred. Pursuanf to Minnesota Statutes, Section 469.177, Subd, i I, the county treasurer shall deduct an amount equal to approximately thiriy-six hundredths of one percent (.36%) of any tax increment distributed to the HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing informa6on and the cost of examining and auditing authorities' use of tas increment financing. Pwsuant to Minnesota Statutes, Section 469.176, Subd. 6: if after four years from the date of certification of the original net tax capacity of the taac increment financing district pursuant to Minnesota Statutes, Section 464.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been 366951�3 MIvSD SA730-121 10-515 commenced on a pazcel located within a taat increment financing district by the authority or by the owner of the pazcel in accordance with the tax increment fmancing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcei shall be excluded from the original net tax capacity of the tas increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tas increment financing plan, the authority shail certify to the county auditor that the activity has commenced and the county auditor shall certify the net taY capacity thereof as most recently certified by the commissionex of revenue and add it to the original net t� capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing stceet. Section 19. Use of Taai Increment The HRA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the Tax Increment Financing District for the following purposes: to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay the capital and administration costs of the Redevelopment Project Area pursuant to the Minnesota Statutes, Sections 469.001 to 469.047; 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay far other purposes as provided in Minnesota Statutes, Section 469.176, Subd. 4; 5. to pay principal and interest on any loans, advances or other payments made to the HRA or for the benefit of Redevelopment Project Area by the developer; 6. to finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and interest on taac increment bonds ar bonds issued pursuant to the TaY Incxement Financing Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.1651, or both; and to accumulate or maintain a reserve securing the payment when due of the principal and interest on the taY increment bonds or bonds issued pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.1651, or both. 366951v3 MI4ID SA130-121 10-515 These revenues shall not be used to circumvent any levy limitations appiicabie to the HRA nor for other purposes prohibated by Minnesota Statutes, Section 469.176, Subd. 4. Section 20. Notification of Prior Planned Improvements. The IIRA shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of tt�e Taac Increment Financing District enlazgement with a listing of all properties within the Tas Increment Financing District or azea of enlargement for which building pernuts have been issued during the eighteen (18) months immediately preceding approval of the Tax Increment Financing Plan by the municipality pursuant to Minnesota Statutes, Section 469. ] 75, Subd. 3. The County Auditor shall increase the original value of the Tax Increment Financing District by the value of improvements for which a building permit was issued. Section 21. Excess Taa� Increments Pursuant to Minnesota Statutes, Section 469.176, Subd 2, in any yeaz in which the taat increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any taz levy as provided in Minnesota Statutes, Section 475.61, Subd. 3, the HRA shall use the excess amount to do any of the following: prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bond; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the HRA may, subject to the limitations set fotth herein, choose to modify the Plan in order to finance additional public costs in the Tax Increment Financing District or Redevelopment Project Area. Section 22. Requirements for Agreements with Developers. The HRA will review any proposal far private development to determine its conformance with the Redevelopment Plan and with applicabie municipal ordinances and codes. To facilitate this effort, the foltowing documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. The HRA may also use the agreements to address other issues related to the development. Pursuant to Minnesota Statutes, Section 464.176, Subd. 5, no more than twenty-five percent (25%), by acreage, of the property to be acquired in the Tax Increment Financing District as set forth in the Tax Increment Financing Plan shall at any time be owned by the HRA as a result of acquisition with the proceeds of bonds issued pursuant to Minnesota Statutes, Section 366951v3 MNID SA130-121 10-515 469.178, without the HRA having, prior to acquisition in excess of twenty-five percent (25%) of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the HRA should the development or redevelopment not be completed. Section 23. Other Limitations on the Use of TaY Increment General Limitations All revenue derived from t� increment shall be used in accordance with the Tax Increment Financing Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of the Redevelopment Project Area pursuant to the HRA Law; These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the acquisition, construction, renovation, operation or maintenance of a building to be used primarily and regularly for conducting the business of a municipaiity, county, school district, or any other local unit of government or the state or federal government, or for a commons area used as a public park, or a facility used for social, recreation or conference purposes. This provision shall not prohibit the use of revenues derived from taa� increments for the constnxction or renovation of a pazking structure. 2. Pooline Limitations. Except as otherwise provided in paragraph 4 below, at least seventy-five percent (75%) of tax increments from the Tas Tncrement Financing Distcict must be expended on acCivities in the T� Increment Financing District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the TaY Increment Financing District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the T� Increment Financing District. 3. Five Year Limitation on Commitment of Tax Increments Tax increments derived from the Tax Increment Financing District shail be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five yeaz rule set forth in Minnesota Statutes, Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year foilowing certification of the Tax Increment Financing Distr 75 percent of said taY increments that remain after expenditures permitted under said five year rule must be used only to pay previously commitment e;cpenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section 469.1763, Subd. 5. 4. Expenditures Outside District. The Authority hereby elects to spend an additional ten percent of the tax increments on activities located outside the Tax Increment 366951v3 MbID SA130-121 io-sis District as permitted by Minnesota Statutes, Section 469.17b3, Subd. 2(d) provided that the expenditures meet the following requirements: (1) they are used exclusively to assist housing that meets the requirements for a qualified low-income building as defined in Section 42 of the Internal Revenue Code of 1986, as amended (the "Code"); (2) they do not exceed the qualified basis of housing as defined under Section 42(c) of the Code less the amount of any credit allowed under Section 42 of the Code, and (3) they aze used to (i) acquire and prepare the site for housing, (ii) acquire, construct or rehabilitate the housing or (iii) make pubiic improvements directly related to the housing. 5ection 24. Countv Road Costs. Pursuant to Minnesota Statutes, Section 469.175, Subd. 1 a, the county board may require the HRA to pay for all or part of the cost of county road improvements if, the proposed development to be assisted by tax increment wiil, in the judgment of the county, substantially increase the use of county roads requiring conshuction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. In the opinion of the HRA and consultants, the proposed development outlined in this Pian will hava little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the HRA within thirty days of receipt of this Plan. Section 25. Assessment A�reements. Pursuant to Minnesota Statutes, Section 469.177, Subd. 8, the HRA may enter into an agreement in recordable form with the developer of property within the TaY Increment Financing District which estabiishes a minimum market value of the 1and and compieted improvements for the duration of the Tax Increment Financing District. The assessment agreement shall be presented to the assessor who shall review the plans and specifications for the improvements constructed, xeview the market value pxeviously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appeaz, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. Section 26. Administration of the Tax Increment Financing District. Administration of the Tax Increment Financing District will be handled by the Executive Director of the HRA. 366951v3 MMD SA130-121 1� io-sis Section 27. Financial Re�ortin� Requirements. The HRA will comply with ail reporting requirements of Minnesota Statutes, Section 469175, Subd. 5, 6 and 6a. 366951v3 MMD SA130-121 11 EXHIBIT A T� Increment Financing Plan Budget Name of Dish Carondelet Type of District: Redevelopment District Dwation of District: 25 years following I st collection TaY Increment Revenue 1) 1�,61 Interest on Invested Funds LoanlSond Proceeds Real Estate Sales S ecial Assessments RentlLease Revenue Grants (S ecify) Other Sources (Specify) Transfers In (S ecify) Tota1 Sources of Funds 10,61 USES OF FUNAS TIF Financin: LandlBuilding Ac uisition Site Im rovements/Pre aration Costs 3,16 Installation of Public Utiliries Parkin Facilities and Foundation Street and Sidewalks Public Park Facilities Bond Princip; Bond Interest LoanlBond P� Loan/Bond/lVote Interest Administrative Costs Bond Issuance Costs Pollution Abatement Canitalized Interest Other Uses S ecify) Affordable Housin 2,65 Transfers Out S ecify) Tota1 Uses of Funds 10,61 (1) Net of State Auditor Deduction i 1 10-515 366951v3 MMD SA130-121 i9ossza�� A-I C � S1. � d N V C X � w N O a` 0 LL F C N � m m } � c � o .� m � a L �. ° N � L � C S py] � N `�' N F- 3 d mo ry K � O a "-<? aj __ > 'Agm� m m o c c � � �� U � U M E tl ' m � ° 2 c > x I� � r N O C t�i N L N 4 LL r 366951v3 MbID SA130-121 EXHIBIT B Projected Tax Increments � Z > K � E - O T J n Q = w a m £ � o � q ¢ ' C O � _ a � � o 6 o O h � � o Q v ° � m � � h y � � N Q d e � � � U y q o x Q d � � _ � P m � n � � E 4 � _ � m � r � � � V g � x D � 3 � � U � U c F � � Q Z U � � � F « Z �j 0000 �����s��� ° �mmmm������mmm t0 h h VJ a') O t N N t� t7 t7 t7 t7 C� tO t7 N h 4J < O V� Q b N N� b� N u N h b�t�J h h N b*n W l7 t7 N N(V N N N N N N N N N N N N N N N N N N N O 9 O O O O O O O< O 0 O p O O O O O O O O O O p O O O uJ h b�� O N h W �� O Q a < - . Y - a V d Q O P` , o 0 0 0 �i oi a vS n '' - ' n � r r ri n n ' O O O W` N N N H(�p � O P t7 m m�� N ro �O �D N t0 ro�O �D m �noo m cnm mw w mm w� m m www ai M m e v o c ° e ° v v o 0 0 `< `< v` v` `< `a v< o 0 o v O O O � f� 1� N N !- f- I� h P 1� N N N N� O O`^ N iA m m N� N N h M1 N N N N cV � � 47 t7 �� � CJ C) M t7 M Cl [7 ° 'n `m `m `m rn� o g o �c �c v.i m ro m m oi m m a cti m m w n M�c'> t� n c� v v v o c v v v v e v v`a v o`a v v O O O O y C Y O C O D N t0 h N N N N N N N' N N N N N N � Q Q Q. V 4 Q� Q P Q h h�p ���(] h h h YL YI t0 �� 0 0 0` m m m m m rn v o w m�o m m m� m m m m m m�o �����, m r_ m m m o 0 0 0 0 o q o 0 0 0 0 0� m m m m w w m gi a`8i m o�i m m m m m m m m m m m Pn' rn (J O 0� O O O O O r P � W F�� ��� I(�1 t(�� ��[t �[�] H�[�l h� `f h h h h h n"� h w w� m `m �`o `m m m�o �a m m m m�o 0 0 0� rn rn m m m H n M m o 0 0` o` `o `o 0 0 0 0 0 0 0 0 w< v v v v_ m��n w a r n, n r r_ r ro w oi �o w m m ' N v: vi �c �o •c �6 . ro.� .�m ry`o N c m i ro�d ro�6 � � � � � � � � �� � � � � � � � � � � � � � � � 0 0 0 0�� m��`$_ � h o m c`�i m m w� m m m�� m m w m m ci c� r .- <d o vi oi m oi w m ai m w rn tli m ai m ai w,`�m w rnm �w'rn w M ro w n.y ° e ° v e`a e o`a `e v`v v v`v `a `a v a a N N N N N N N N N� N� N N N O O O � O O S �p S t�D N N � O (O t0 (O (9 (O �O N �D t0 /O (O N �O �D W O O O O m CJ O 6l � tn � i[f 4f H h h h M H h h H h m N c�u N c�i H N `e�� � r°'`�i o�i � � � � � � � � � � � � � � N t7 t7 ty CJ CJ CJ ° o S ° o ° o ° o ° o ° o ° o o ° o ° o ° o S $ � � � ° o ° o ° o ° o $ o 0 0 ° o � ° o Q Y V P P P Q P<< K Y Y Y Y V< C< Q< d' Q R V K Y Y S S S� O O O O p O N O tp O(p �p [p tp tp �D (O f0 [p [p tp tp (p (O O O O [O O 9 O O O 0 [7 O W [ h �II i �[J b qpJ b � �b �(I l tn �( �[I N < Y O M � d(�O �(O � n m�N 0 0� t7 t7 � l7 � t7 � C�J c) m (7 l7 CJ (7 t7 [7 W M t7 l7 W (7 o O O O F R Q Q O O� O N t7 �^ O O O O O O O O O O O O O O � O O N �� 6 pQJ S o o op m �n c� m tp n m c? m m c; i i e`� i? .$_ co i w ��?� N N N` N N N N N N W� Q 1� p O O O O O O O O O O O O O � r L�' M oi oi r oi ai oi m oi �i ai o 0 � N N N N N N N t�s (� (� (� [� W l7 { � CJ M M CJ M(� {� � 9 D� � O � ^'''�� m� N N N[D Q b�D W N O N t� N� N N N N l� t� ���i ��� � O Ol � W t7 t7 t9 M CJ (� N C] W vl n$ CJ M �aw a� aa�a�aa�aa i 10-515 N m W v 0 `w b w w N w � 0 � u N w m m 0 « 10-515 EXHIBIT C Fiscal and Economic Impact on Other Taxing Jurisdictions � Q V 'a N ._ � 0 % N LL F � h i d } a � O C '� � F Q C � � O � C ` � y C 0 L a �t m m X 1-' J d � a Ip � � O a - �? „ m> G � +�+ � O = C r L IL O �o . �' N f0 U � U � � � ° �c C ] m i� F"' O r n N � . d N N a LL � t6 p � N tJ R C N� (O � N � a� N�p � U � to rn s d d a _ @ 9 U Z F 0 0 0 0 � 5 « < n v ` m o 0 0 L� V� O O O � O O d � � J 2 � k- � o E d +�- {p i ,G N U � p p J � T Q 1 2 E � @ : 3 m I- � m Z F Z i a a a x . � � � F`°- � m ro � a � U Z i � 0 N ry � � ' a F ; m � o r z ; N � o � � C � `� C N LL O � „ p c.i r � LL L f ?> O O � O � � : O N N ry F i C a � O F Z ' N � rn� c @ � f ' 366951v3 MMD SA130-12t 0 0 0 0 � M t�D � (7 d V M M V N � o M w � c�o ° o c m c� oS N V N � � � N � � � � I� f� A h v C K O � c� c� m � � m � � � (7 (�D M ' W N m N V N 0 n � O 0 0 0 0 0 v v � c w M V N � N � W r � � � M � M 6> N W o �n o N Q N � T a � � � U m N T N � p N � N N ry � t6 � t O U � N O I- C-1 N > d O � i� Y �J � R N .� N ro K � £ 2. 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