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97-1190� � Ame�c�.�e�, - i��,n.e.�.:� Pc �-J� 0.\ a�} q-� �-,�.€�� .�.... , �' Council File # `� 7 —1 \gp Green Sheet # �_ C l� MfNNESOTA Presented Refesed To Committee Date RESOLUTION APPROVING T�IE TAX INCREMENT FINANCING PLAN FOR THE PLASTICS, INC. REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND HAZARDOUS SUBSTANCE SUBDISTRICT, AND AUTHORIZING (A) THE EXTENSION OF CROSBY LAKE PROJECT GEMINI (B) Tf� ISSUANCE BY TF� PORT AUTHORITY OF $2,000,000 SUBORDINATED TAX INCREMENT BONDS, AND (C) THE ESTABLISHMENT OF THE PLASTICS PROJECT AS A"PRIORITY PROJECT" FOR PURPOSES OF APPLYING FOR CERTAIN GRANT FUNDS, ALL IN CONNECTION WITH TI� RELOCATION OF PLASTICS, INC. TO THE CITGO SIT'E BE IT RESOLVED by the Council of the City of Saint Pau1, Minnesota, as follows: Section 1. citals. 1.01. It has been proposed that the Port Authority of the CiTy of Saint Paul (the "Port Authority") establish the Plas6cs, Inc. Redevelopment Tax Increment Financing District (the "District") and a Hazardous Substance Subdistrict therein (the "HSS") and, in connection therewith that the City of Saint Paul (the "City") approve the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.179, inciusive; and Minnesota Statutes, Sections 469.048 through 469.068, inclusive; and 1.02. The Port Authority has investigated the facts and has caused to be prepared a proposed Tax Increment Financing Plan (the "Plan") for the District and the HSS. 1.03. On November 6, 1996, pursuant to Council File No. 96-1376, the City Council approved the execution of a Development Agreement with the Science Museum of Minnesota (the "SMM"} which requires the City to acquire property which is necessary for the SMM's new 1475731 � 1 �� 1 �3 g_ n-97 °1�-1190 river&ont facility. Plastics, Inc. ("Piastics") is currenfly located on a portion of such property (the "Chestnut Site") and needs to be relocated in order for the SMM project to move forwazd. 1.04. It has been proposed that the approximately 26-acre site located approximately one mile to the west of downtown Saim Paui at Shepard Road and James Avenue (the "Citgo Site") be redeveloped for purposes of buiiding an appro�mately 370,004 square foot manufacturing and distribution facility to be purchased by Piastics upon demolition of their current facility at the Chestnut Site. The acquisition, clearance, remediation and improvement of the Chestnut Site and the Citgo Site is collecfively referred to herein as the "Project". 1.05. It has been pmposed that the City contribute approximately $3,200,000 ($2,700,000 of which is already budgeted as part of the Science Museum Project) to the costs of the Project by paying certain of the costs associated with the u�ansfer of Plastics from the Chesmut Site, and its facility in F,agan, to the new faciliry at the Citgo 5ite. 1.Q6. The Citgo Site is not presently located within the Crosby Lake Project Gemini Zone. It has been proposed that a noncontiguous eacpansion of the Crosby Lake Project Gemini Zone be approved in order to encompass the Citgo Site, and to provide electric utility service to Plastics at a reduced rate. 1.07. It has also been proposed that: (a) the Port Authority issue bonds (the "Bonds") in a principal amount which wiil produce net available funds to be applied to costs of the Project of at Ieast $13,80Q,000, but in any event not to exceed the principal amount of $14,650,OOQ to finance a portion of the costs of the Project, including specifically the costs of acquisition, clearance, remediation and improvement of the Citgo Site, which bonds aze to be secured by the general obligation of the City which will, in hun, be secured by a first lien pledge of tax increments with respect to appro�mately $6,600,000 of the Bonds, and, with respect to the remainder of the Bonds will be secured by a lien on taY increments subordinate to, in order of priority, such first lien pledge, the payment of the NSP Bonds (as defined herein), and the payment of adminisirative charges in connection with the Dishict; (b) the Council consider adopting an ordinance authorizing the issuance of said Bonds by the Port Authority under Minnesota Statutes, Secrion 469.060, and pledging the City's general obligation thereto; and (c) the Port Authority issue its $2,000,000 subordinated ta�c increment bonds (the "NSP Bonds") which will be secured by a second lien on tax increments, in order to finance additional costs of the Project. 1.08 The Port Authority andlor the City, as applicable, have performed ail actions required by law to be performed prior to the estabiishment of the District and the HSS and the adoption of ttte Plan relating thereto, including, but not Iimited to, notificarion of the County Commissioner in whose district the District is located, Ramsey County and School District No. 625 having taxing jurisdiction over the properry to be included in the District and the HSS, and the hoiding of a pubiic hearing after published notice as required by law. 1475731 � � /�-�? ° 1'1-11q'� Section 2. Findings by the Citv for the A��roval of the T� Increment Financing Plan for the Plastics_ Inc. Redevelopment Tax Increment Financing District and the Ha7ardous Substance Subdistrict therein. 2A1, The Council hereby finds that the District is a redevelopment district pursuant to Minnesota Statutes, Secfion 469174, Subd. 10, paragraph (a), clause (1), and the HSS is a hazardous substance subdistrict pursuant to the Ivlinnesota Statutes, Section 469.175, Subd. 7. The Port Authority shall make the findings necessary to qualify the HSS. 2.02. The Council hereby finds that the District and the HSS, and the approval of the Plan relating thereto, aze intended and, in the }udgment of this Council, the effect of such actions wiil be, to provide an impetus for redevelopment in the Dish�ict and to further the public purposes and accomplish certain objectives as specified in the Plan. 2.03. The Council fiuther finds that the proposed development or redevelopment in the District, in the opinion of the City, would not occur solely through private investment within the reasonably foreseeable future and that the increased mazket value on the site that could reasonably be expected to occur without the use of tax increment fmancing (being $0) would be less than the increase in the mazket value estimated to result from the proposed development (being approzcimately $12,500,000) after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan (being approximately $8,500,000) and, therefore, the use of tax increment financing is deemed necessary; that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Pian will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. 2.04. The City does no elect to compute the tax increments in accordance with Minnesota Statutes, Section 469177, subd. 3, clause (b), meaning that tax increments will be determined before the applicarion of the fiscal disparities provisions of Minnesota Statutes, Chapter 473F. 2.05. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes, Seetion 273.1399, Subd. 6(d), in order to qualify the District for exemption from state aid losses set forth in Section 273.1399. 2.06. The Council further finds, declares and determines that the City made the above findings stated in this Section 2 and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Attachment A. Secrion 3. Approvai of the Plan. The Plan for the District and the HSS is hereby approved and adopted, and shall be placed on file in the office of the City Clerk. 7475737 � �� l� °1��to Secfion 4. Acknowledgment Reearding Tax Increments. The Council acknowledges that the County Auditor will forwazd all t� increments from the District and the HSS to the Port Authority. Section 5. Approval of Pro�ect Gemini for District. The Crosby Lake Project Gemini Zone is hereby eapanded to encompass the area of the District Secfion 6. Qtdinance Authorizing Tssuance of Bonds. City staff is hereby authorized and directed to submit an ordinance to the Council for its consideration, which authorizes the issuance of the Bonds as described in pazagraph 1.07 above. Section 7. A��roval of Subordinated Tax Increment Bonds. '7.01. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority shali be issued only with the consent of the City Council of the City, by resoluzion adopted in accordance with law. 7.02. The Council hereby approves the issuance of the NSP Bonds by the Port Authority for the purposes described herein and in the Plan, the exact details of which, including but limited to, provisions relating to maturity and interest rate, aze to be detemuned by the Port Authority, and the Council hereby authorizes the issuance of any additional bonds or notes (inciuding refund'vng bonds or notes) by the Port Authority found by the Port Authority to be necessary for canyiug out the purposes for which the NSP Bonds are issued. Section 8. "Prior'�yt Project" for DTED and MIF Funds. The Council hereby establishes this Project as a"Priority ProjecP' for the purposes of applying for grant funds from the Department of Trade and Economic Development and the Minnesota Investment Fund for funds to finance the Project, and the Council herehy approves in concept the applicarion to the State of Minnesota for $500,000 in Minnesota Investment Funds for this Project. Section 9. Ratification of Prior Aetions. The prior actions of the City staff and Port Authority staff in connection with the preparation of the Plan, the distribution of the Plan to the County and School Dishict, and the publication of the nofice of public hearing, aze hezeby ratified and confirmed. 1475731 � �� -r7-�7 St. Paul Port Johnson, L. Hansen, B. Morin on September 24, 1997 9 � GREEN SHEET � DEPAATMENT DIRECTOR � CftYATfORNEY � � —� � FOR gUDGErD1AECTOR � � MAYOR (OR ASSISTAN'n TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE} °l1- ��°�a N° -13098 INITIAIIDATE — �CINCAUNGL _ � CITY CLERK _ � FIN. & MGt SERVICES DIR. a — "O Approval of the Plastics, Inc. Redevelopment and Hazardous Substance Subdistri Tax Increment Financing Paln for the Dist and make the necessary statutory findings and elections in connection with the plan and the Dis±rict and approve the issuance by the Port Authoxity of $2,000,000 of second lien t� increnent bonds. w _ PIANNING CAMMISSION _ ( __ CIB GOMMITTEE _ _ � STAFF _ _ _ �ISTRICTCAURT _ _ SUPPOR7S WHICH COUNCIL OBJECTIVE� Industrial Development PERSONAL SERVICE CONTRACTS MUST AMSWER THE FOLL4WING �UESTIONS: 1. Ha5 this personNirm ever worketl under a contract fOr this department? YES NO 2. Has ihis personfiirm ever been a city employee? YES NO 3. Does this person/Firm possess a skiil not normally possessetl by aoy current city employee? YES NO Explain all yes answers on separate sheet antl attach to green sheet Approval of this Tax Increment Financing Plan and Aazardous Substance Subdistrict will assist the redevelopment and remediation of the Citgo site £or Plastics, Inc. IF APpRWED. Plastics, Inc. will construct a 370,000 square foot manufacturing facility at the Citgo site and retain andJor relocate 350 jobs in Saint Paul. None IF NOT '_astics, Inc. will be forced to relocate out of the City of Saint Paul. AMOUNT OF TRANSACTION $ 16, 650, 000 COSTIREVENUE BUD6ETE0 (CIRCLE ONE) YES NO Tax Increment Financing, Note Payments, iGSOURCE Potential_ GY'ant Rer.ei�� ,��_V� AC71VIiYNUMBER 4L INFORMAiION' (EXPLAIN) ATTACHMENT A RESOLUTION # �I �— //`�o r��qi�_11R� ��z� � �� a a � ��. a� The reasons and facts supporting the fmdings for the adoption of the TaY Increment Financing Plan (the "Plan") for the Plastics, Inc. Redevelopment TaY Increment Financing Aistrict (the "DistricY') as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 aze as follows: 1. Finding tkat the District is a redevelopment district as defzned in Minnesota Statutes, Section 469.174. Subd. 10, paragraph (a), clause (1). The District consists of 3 contiguous pazcels. The total squaze footage of the District is approximately 1,143,000 square feet, and, and 70% of that number is 800,100 square feet. The Citgo parcel within the District is 875,269 square feet and is "occupied" by buildings, streets, utilities or other improvements, because at least 15°/u (131,290 square feet) of the parcel is covered by improvements (including above ground oiUgas storage tanks). There aze 21 buildings in the District (18 of them storage tanks). All of the storage tanks (approximately 85% of the buildings in the District) aze substandazd for the following reasons (i) as evidenced by a notice dated September 9, 1997 from inspector S.J. Wings of the City of Saint Paul, the tanks have been abandoned for more than 12 months, and therefore are in violation of Section 79.116 of the Uniform Fire Code, which requires that the tanks be removed; (ii) as evidenced by a Ietter dated September 24, 1997 from William Gilbertson, the head of Citgo's real estate department, all of the tanks are considered functionally obsolete and not usable for their intended purpose, and should be removed; (iii) representatives of TKDA, the engineering firm retained by the Port Authority in connection witY� the demolition to occur on the Citgo Site, have reported that, on the basis of a viewing of the interior of a number of representative starage tanks, the inside of the tanks have deteriorated, and the tanks would need to be significantly remodeled and strengthened in order to be placed back in service; and (iv) the tank farm located on the Citgo site is, as a whole, structurally defective at this time, since it is structured for delivery of petroleum products by bazge only, and the nearby river channel has not be dredged to allow barge deliveries for several years. The tanks cannot be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same squaze £ootage and type on the site. 2. Finding that the proposed devetopment, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tctt increment financing is deemed necessary and that the increased market value of the site that could reasanably be expected to occur without the use of ta_Y increment frnancing 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 tar increments for the masimum duration of the district permitted by the ptan. Due to the excessive costs for the clearance, grading, and soil and pollution remediation of the Citgo Site, this project is feasible only through assistance, in part, from tax increment fmancing. The proposed development consists of an approximately 370,000 square foot manufacturing and distribution facility, the increase in market value of which is estimated to be appro�mately $12,500,000. The value of development on the Citgo Site expected to occur without the use of tas increment financing is $0, which is less than the estimated increase in ta�s�s� � q � _ ��g� market value expected to be created bythe proposed project(approximately $12,500,000) minusthe present value of the projected tas increments (approximately $8,SO�,Q00). 3. Finding that the Tax Increment Financing Plan conforms to the general pdan for the development or redeveZopment of the municipality as a whole. The Citgo Site wili be appropriately zoned for the Project. The proposed redevelopment is consistent with the Saint Pau1 Mississippi River Corridor Plan which was originally adopted in 1481, and amendzd in 1987, and concluded that this site should be developed with labor-intensive industriai uses. 4. Finding that the Tox Increment Fznancing Plan for the District will afford maximum opportuniry, consistent with the sound needs of the City as a whole, for the develapment of the District by private enterprise. The establisl�ment of the District will resuit in the facilitation of redevelopment in the area of the City covered by ihe Disirict, will assist an the development of the new Science Museum of Minnesota, and will result in the retention and creation of jobs for residents of the City. 5. Finding that the City does not elect to compute the tax increments in accordance with Minnesota Statutes, Section 469.17� Subd 3, ctause (b). The failure to elect to calculate increment in accordance with the above-referenced statute results in a greater amount of increment to be captured from the District, which will facilitate the financing of the Project. eas a s sen ey os om / ✓ o �ns � arns ✓ egar � 0 on j ✓ une / t/ � � � 1475731 2 Adopted by Council: Date �,��___��.j \ ��T'1 � Adoption Certified by Council Secretary By: �� a . �7�,1 = Approved by Mayor: Date �� 3 ! � �t— � Requested by Departrnent of: � Form Approved by City Attomey � Approved by Mayor for Submission to Council � q �-��9D 1475731 RUG-13-1997 10=17 CITIZEN SERVICE OFFICE 512 255 8689 P.01iH3 q.� _�1°t� FACSIMILE �'AANSMISSTON COV�R SHEET �ro: ,�aa� �ROM: �� CXTY OF SAZ1lTT P.AUZ, -� - �5 7� DATE: c�--f�—q'7 Fax #: Fax �: 6I2-266-8689 ;.`- pages (inc. thzs page) I�TOTE TO FACSTMTLE OPBRATOR please deliver this facsi�niJe n�ansnZissioil to the above addressee. If you did not receive all of the pages in �ood candition, please advise the Citi2en Service Office at 266-89&9 at your earliesr convenicnce. �'t -\\�o ATTACHMENT A RESOLUTION #_ The reasons and facts supporting the findings for the adoption of the Tas "Plan") for the Plastics, Inc. Redevelopment TaY Increment Financing District (the to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the District is a redevelopment district as defzned in Subd. 10, paragraph (a), clause (1). The District consists of contiguous pazcels. The total square 1,143,000 square feet, and, and 70% of that number is 800,100 square f 875,269 square feet and is "occupied" by buildings, streets, utilities or (131,290 square feet) of the pazcel is covered by improvements (inci There are buildings in the Dishict (_ of them storage tanks), � substandazd because: [to be provided for each building or tank). � �inancing Plan (the as required pursuant Statutes, Section 469.174, �tag�e of the Distdct is approximately �he Citgo pazcel within the District is er improvements, because at least IS% g above ground oil/gas storage tanks). (being %) of which are structurally 2. Finding that the proposed development, in the opinio of the Council, would not occur solely through private inveshnent within the reasonably foreseeable future nc� therefore, the use of tax increment financing is deemed necessary and that the increased market value o the site that could reasonably be expected to occur without the use of tax increment financing would be less an the increase in the market value estimated to resudt from the proposed development after subtracting th present value of the projected tar increments for the maximum duration of the district permitted by the pla . Due to the excessive costs for the clearance, ' g, and soil and pollufion remediation of the Citgo Site, this project is feasible only through assistance, in art, from taa� increment financing. The proposed development consists of an appro�mately 370,000 squat foot manufactuting and distribution facility, the increase an mazket value of which is estimated to be appro mately $12,500,000. The value of development on the Citgo Site expected to occur without the use of increment financing is $0, which is less than the estimated increase in mazket value �pected to be created by e proposed project (appro�mately $12,500,000) minus the present value of the projected tax increments (appr ''mately $8,500,000). 3. Finding that the Tax redevelopment ofthe municip The Citgo Site will be Saint Paul Mississippi concluded that this site, �ement Financing Plan conforms to the general plan for the development or as a whole. >riately zoned for the Project. The proposed redevelopment is consistent with the Corridor Plan which was originally adopted in 19&l, and amended in 1987, and be developed with labor-intensive indushial uses. �"� � /7-�/.� °{�-1190 4. Finding that the Tca Increment Financing Plan for the District will afford mcttimum opportunity, coruistent with the sound needs of the City as a whole, for the deveZopment of the District by private enterprise_ The establishment of the District will result in the facilitation of redevelopment in the azea of the ity covered by the District, will assist in the development of the new Science Museum of Minnesota, and result in the retention and creation of jobs for residents of the City. �!�l►Q'� ��i� �___ : � � � ___ .�___ •�___ •�___ �___ ____ Adopted by Council: Date Adoption Certified by Council Secretary � Approved by Mayor: Date � Requested by Departrnentof � Form � Approved by Mayor for Subm'lssion to Council By: �d'��T _ �� 1475737 e v s � a � i (; �� 2 RUG-13-1997 10�18 CITIZEN SERUICE OFFICE .�1�i Lu u-�J �� J u L..!�.. � ��o •r^°�c��c�a �.�� ; � � ''j ^L `=7 O �j Q � ---- � I_---� ; �� 1 ` `�.�� .+" ``-+ art � .", U C� �>� �_"� �,�.Cl'--= �,z � "=-�j '`"� � � '� � Q �= }:�' ...�� ,�� --�, -•��_ _ _ �--� �; 3. ` ^� rom.0 C' j I� a � �^� �QD��o��'� W c ,� �CQ�=��:�o� `� i . • ^ ' pG . • �.Q ...): �..•J�P �M �O 1 � L.C�ONS Mt2�� a � � �Z�� ♦�y�i'� +�� _ . .� 'S . .�.- �C�� r : �� • ,� OY �C •'��Y ' v e a �C�� rs. � IJ r � ' <=— � ._. .:::- �,,... � Q .� ..+.' . : .;' = Y C! L Ll,'�� :./ � �a�� - �1: �. �: �� n � � r�� , � �� -.,.o_. oao�� s � ( =*• ( o ....« ,.. o ;�o� �. ��`11��01V .�. ��0� � �" � I_�! �' S � • Q � l �� C� C� �Q .��. � ` , ..� � -� r� I^ � �� M1..-+ . �-..z ; 1 � �� fira�e �c + s ! �� .°��a� . • b � Or• . a � /_�� a r� -.---� lNDUSTRIAL DEVEl.OPMENT DISTRICT � REDEVELOPMEN'CTAXINCREMENT FiI�tANClNG DtSTRIGT 8/23/97 �r / � � , / � / f 612 266 8689 P. � ��'+a.. �/;•- �_. . ..� �i! �'- ' p � / "c a ` y� �1 :1. �c � � '�l-� � / � S � � � / � ) :( - ~p x� ` �.: � , I �. �i.... ��.JJL �� y n � J; , �`'` � , J �r� �° . / •' .i�/ J - ° � �% . F . � �. �, ;i' /. °.�►,�,� .: ' �» y� C - i _� . / n 4 �� ' � /• i � a �'� ��' ; L `� � Y". 4 : ..:��.., � C , �:�'•� ,_ y '�k� ... i-- y R�� 4 p � . � S °` . �— '�� _ . � �� { > r�---�--•� ; '�.1� L� o C� L�� [� '� U !,t —.; P�ASTIGS WC REpEVE�.OPMEN'L T�TAL P.03 RUG-13-1997 10�17 CITIZEN SERUICE OFFICE 612 266 8689 P.02iO3 o�� - i�°�D Notice of Public Hearing NOTICE IS HEREBX GIVEN that a public hearing before the C.fluncii of the City of Saint Paut urili be held in the City Councii Chambers, City Hall, 15 Wesi ICelln� Boulevazd, Saint Paul, Minnesota at 3:30 p_m on August 13, 1997, Yo consider a proposal of the Port Authority of the City of Saint Pau] to adopt a TAX INCRE�T FIN.4NCING PLAN FOR TT� PLASTICS, INC. RTDEVELOPMENT ANA IiAZAItAOUS SUBSTANCE SUBDISTRICT TAX INCREMENT PINANCTNG DISTRICT (the "Plan"). Copies of the Plan aze on file with the City Clerk, Room 386, City Hall, and with tbe Port Authoriry, 345 St. Peter Street, 1900 Landmazk "Z'owers, and are available for aispeckion during reguiar business hours. Upon said public hearmg all interested persons will be given the opportunity to be heard or submit wri.tten comments and the City Council will consider, among other maiters, as providefl in Minnesota 5tatutes, Section 469.175, Subd. 3, (1) whethez ihe Plan conforms to the Saint Paul Comprehensiva �'lan, (2) whether tha Plan will afford maximum opporhwity consiste,nt with the sound needs of the Gity as a whole for the development of the district in cooperation with private enterprise, and (3) whethez the Plan should Ue approved. Tlie Plastics, Inc. Redevelopment and Hazardous Substance Subdistrict Tax Increment Pinancin� District encompass all property and adjacem rights-of-way as found on the attached map. l�ated: July 31. 1997 FRIsD OWUSU, Cit�� CIerk [ATTACfI MAPI ,�n„< i ! � 1 ,� � � ��6�gS7� � � Ame�c�.�e�, - i��,n.e.�.:� Pc �-J� 0.\ a�} q-� �-,�.€�� .�.... , �' Council File # `� 7 —1 \gp Green Sheet # �_ C l� MfNNESOTA Presented Refesed To Committee Date RESOLUTION APPROVING T�IE TAX INCREMENT FINANCING PLAN FOR THE PLASTICS, INC. REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND HAZARDOUS SUBSTANCE SUBDISTRICT, AND AUTHORIZING (A) THE EXTENSION OF CROSBY LAKE PROJECT GEMINI (B) Tf� ISSUANCE BY TF� PORT AUTHORITY OF $2,000,000 SUBORDINATED TAX INCREMENT BONDS, AND (C) THE ESTABLISHMENT OF THE PLASTICS PROJECT AS A"PRIORITY PROJECT" FOR PURPOSES OF APPLYING FOR CERTAIN GRANT FUNDS, ALL IN CONNECTION WITH TI� RELOCATION OF PLASTICS, INC. TO THE CITGO SIT'E BE IT RESOLVED by the Council of the City of Saint Pau1, Minnesota, as follows: Section 1. citals. 1.01. It has been proposed that the Port Authority of the CiTy of Saint Paul (the "Port Authority") establish the Plas6cs, Inc. Redevelopment Tax Increment Financing District (the "District") and a Hazardous Substance Subdistrict therein (the "HSS") and, in connection therewith that the City of Saint Paul (the "City") approve the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.179, inciusive; and Minnesota Statutes, Sections 469.048 through 469.068, inclusive; and 1.02. The Port Authority has investigated the facts and has caused to be prepared a proposed Tax Increment Financing Plan (the "Plan") for the District and the HSS. 1.03. On November 6, 1996, pursuant to Council File No. 96-1376, the City Council approved the execution of a Development Agreement with the Science Museum of Minnesota (the "SMM"} which requires the City to acquire property which is necessary for the SMM's new 1475731 � 1 �� 1 �3 g_ n-97 °1�-1190 river&ont facility. Plastics, Inc. ("Piastics") is currenfly located on a portion of such property (the "Chestnut Site") and needs to be relocated in order for the SMM project to move forwazd. 1.04. It has been proposed that the approximately 26-acre site located approximately one mile to the west of downtown Saim Paui at Shepard Road and James Avenue (the "Citgo Site") be redeveloped for purposes of buiiding an appro�mately 370,004 square foot manufacturing and distribution facility to be purchased by Piastics upon demolition of their current facility at the Chestnut Site. The acquisition, clearance, remediation and improvement of the Chestnut Site and the Citgo Site is collecfively referred to herein as the "Project". 1.05. It has been pmposed that the City contribute approximately $3,200,000 ($2,700,000 of which is already budgeted as part of the Science Museum Project) to the costs of the Project by paying certain of the costs associated with the u�ansfer of Plastics from the Chesmut Site, and its facility in F,agan, to the new faciliry at the Citgo 5ite. 1.Q6. The Citgo Site is not presently located within the Crosby Lake Project Gemini Zone. It has been proposed that a noncontiguous eacpansion of the Crosby Lake Project Gemini Zone be approved in order to encompass the Citgo Site, and to provide electric utility service to Plastics at a reduced rate. 1.07. It has also been proposed that: (a) the Port Authority issue bonds (the "Bonds") in a principal amount which wiil produce net available funds to be applied to costs of the Project of at Ieast $13,80Q,000, but in any event not to exceed the principal amount of $14,650,OOQ to finance a portion of the costs of the Project, including specifically the costs of acquisition, clearance, remediation and improvement of the Citgo Site, which bonds aze to be secured by the general obligation of the City which will, in hun, be secured by a first lien pledge of tax increments with respect to appro�mately $6,600,000 of the Bonds, and, with respect to the remainder of the Bonds will be secured by a lien on taY increments subordinate to, in order of priority, such first lien pledge, the payment of the NSP Bonds (as defined herein), and the payment of adminisirative charges in connection with the Dishict; (b) the Council consider adopting an ordinance authorizing the issuance of said Bonds by the Port Authority under Minnesota Statutes, Secrion 469.060, and pledging the City's general obligation thereto; and (c) the Port Authority issue its $2,000,000 subordinated ta�c increment bonds (the "NSP Bonds") which will be secured by a second lien on tax increments, in order to finance additional costs of the Project. 1.08 The Port Authority andlor the City, as applicable, have performed ail actions required by law to be performed prior to the estabiishment of the District and the HSS and the adoption of ttte Plan relating thereto, including, but not Iimited to, notificarion of the County Commissioner in whose district the District is located, Ramsey County and School District No. 625 having taxing jurisdiction over the properry to be included in the District and the HSS, and the hoiding of a pubiic hearing after published notice as required by law. 1475731 � � /�-�? ° 1'1-11q'� Section 2. Findings by the Citv for the A��roval of the T� Increment Financing Plan for the Plastics_ Inc. Redevelopment Tax Increment Financing District and the Ha7ardous Substance Subdistrict therein. 2A1, The Council hereby finds that the District is a redevelopment district pursuant to Minnesota Statutes, Secfion 469174, Subd. 10, paragraph (a), clause (1), and the HSS is a hazardous substance subdistrict pursuant to the Ivlinnesota Statutes, Section 469.175, Subd. 7. The Port Authority shall make the findings necessary to qualify the HSS. 2.02. The Council hereby finds that the District and the HSS, and the approval of the Plan relating thereto, aze intended and, in the }udgment of this Council, the effect of such actions wiil be, to provide an impetus for redevelopment in the Dish�ict and to further the public purposes and accomplish certain objectives as specified in the Plan. 2.03. The Council fiuther finds that the proposed development or redevelopment in the District, in the opinion of the City, would not occur solely through private investment within the reasonably foreseeable future and that the increased mazket value on the site that could reasonably be expected to occur without the use of tax increment fmancing (being $0) would be less than the increase in the mazket value estimated to result from the proposed development (being approzcimately $12,500,000) after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan (being approximately $8,500,000) and, therefore, the use of tax increment financing is deemed necessary; that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Pian will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. 2.04. The City does no elect to compute the tax increments in accordance with Minnesota Statutes, Section 469177, subd. 3, clause (b), meaning that tax increments will be determined before the applicarion of the fiscal disparities provisions of Minnesota Statutes, Chapter 473F. 2.05. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes, Seetion 273.1399, Subd. 6(d), in order to qualify the District for exemption from state aid losses set forth in Section 273.1399. 2.06. The Council further finds, declares and determines that the City made the above findings stated in this Section 2 and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Attachment A. Secrion 3. Approvai of the Plan. The Plan for the District and the HSS is hereby approved and adopted, and shall be placed on file in the office of the City Clerk. 7475737 � �� l� °1��to Secfion 4. Acknowledgment Reearding Tax Increments. The Council acknowledges that the County Auditor will forwazd all t� increments from the District and the HSS to the Port Authority. Section 5. Approval of Pro�ect Gemini for District. The Crosby Lake Project Gemini Zone is hereby eapanded to encompass the area of the District Secfion 6. Qtdinance Authorizing Tssuance of Bonds. City staff is hereby authorized and directed to submit an ordinance to the Council for its consideration, which authorizes the issuance of the Bonds as described in pazagraph 1.07 above. Section 7. A��roval of Subordinated Tax Increment Bonds. '7.01. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority shali be issued only with the consent of the City Council of the City, by resoluzion adopted in accordance with law. 7.02. The Council hereby approves the issuance of the NSP Bonds by the Port Authority for the purposes described herein and in the Plan, the exact details of which, including but limited to, provisions relating to maturity and interest rate, aze to be detemuned by the Port Authority, and the Council hereby authorizes the issuance of any additional bonds or notes (inciuding refund'vng bonds or notes) by the Port Authority found by the Port Authority to be necessary for canyiug out the purposes for which the NSP Bonds are issued. Section 8. "Prior'�yt Project" for DTED and MIF Funds. The Council hereby establishes this Project as a"Priority ProjecP' for the purposes of applying for grant funds from the Department of Trade and Economic Development and the Minnesota Investment Fund for funds to finance the Project, and the Council herehy approves in concept the applicarion to the State of Minnesota for $500,000 in Minnesota Investment Funds for this Project. Section 9. Ratification of Prior Aetions. The prior actions of the City staff and Port Authority staff in connection with the preparation of the Plan, the distribution of the Plan to the County and School Dishict, and the publication of the nofice of public hearing, aze hezeby ratified and confirmed. 1475731 � �� -r7-�7 St. Paul Port Johnson, L. Hansen, B. Morin on September 24, 1997 9 � GREEN SHEET � DEPAATMENT DIRECTOR � CftYATfORNEY � � —� � FOR gUDGErD1AECTOR � � MAYOR (OR ASSISTAN'n TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE} °l1- ��°�a N° -13098 INITIAIIDATE — �CINCAUNGL _ � CITY CLERK _ � FIN. & MGt SERVICES DIR. a — "O Approval of the Plastics, Inc. Redevelopment and Hazardous Substance Subdistri Tax Increment Financing Paln for the Dist and make the necessary statutory findings and elections in connection with the plan and the Dis±rict and approve the issuance by the Port Authoxity of $2,000,000 of second lien t� increnent bonds. w _ PIANNING CAMMISSION _ ( __ CIB GOMMITTEE _ _ � STAFF _ _ _ �ISTRICTCAURT _ _ SUPPOR7S WHICH COUNCIL OBJECTIVE� Industrial Development PERSONAL SERVICE CONTRACTS MUST AMSWER THE FOLL4WING �UESTIONS: 1. Ha5 this personNirm ever worketl under a contract fOr this department? YES NO 2. Has ihis personfiirm ever been a city employee? YES NO 3. Does this person/Firm possess a skiil not normally possessetl by aoy current city employee? YES NO Explain all yes answers on separate sheet antl attach to green sheet Approval of this Tax Increment Financing Plan and Aazardous Substance Subdistrict will assist the redevelopment and remediation of the Citgo site £or Plastics, Inc. IF APpRWED. Plastics, Inc. will construct a 370,000 square foot manufacturing facility at the Citgo site and retain andJor relocate 350 jobs in Saint Paul. None IF NOT '_astics, Inc. will be forced to relocate out of the City of Saint Paul. AMOUNT OF TRANSACTION $ 16, 650, 000 COSTIREVENUE BUD6ETE0 (CIRCLE ONE) YES NO Tax Increment Financing, Note Payments, iGSOURCE Potential_ GY'ant Rer.ei�� ,��_V� AC71VIiYNUMBER 4L INFORMAiION' (EXPLAIN) ATTACHMENT A RESOLUTION # �I �— //`�o r��qi�_11R� ��z� � �� a a � ��. a� The reasons and facts supporting the fmdings for the adoption of the TaY Increment Financing Plan (the "Plan") for the Plastics, Inc. Redevelopment TaY Increment Financing Aistrict (the "DistricY') as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 aze as follows: 1. Finding tkat the District is a redevelopment district as defzned in Minnesota Statutes, Section 469.174. Subd. 10, paragraph (a), clause (1). The District consists of 3 contiguous pazcels. The total squaze footage of the District is approximately 1,143,000 square feet, and, and 70% of that number is 800,100 square feet. The Citgo parcel within the District is 875,269 square feet and is "occupied" by buildings, streets, utilities or other improvements, because at least 15°/u (131,290 square feet) of the parcel is covered by improvements (including above ground oiUgas storage tanks). There aze 21 buildings in the District (18 of them storage tanks). All of the storage tanks (approximately 85% of the buildings in the District) aze substandazd for the following reasons (i) as evidenced by a notice dated September 9, 1997 from inspector S.J. Wings of the City of Saint Paul, the tanks have been abandoned for more than 12 months, and therefore are in violation of Section 79.116 of the Uniform Fire Code, which requires that the tanks be removed; (ii) as evidenced by a Ietter dated September 24, 1997 from William Gilbertson, the head of Citgo's real estate department, all of the tanks are considered functionally obsolete and not usable for their intended purpose, and should be removed; (iii) representatives of TKDA, the engineering firm retained by the Port Authority in connection witY� the demolition to occur on the Citgo Site, have reported that, on the basis of a viewing of the interior of a number of representative starage tanks, the inside of the tanks have deteriorated, and the tanks would need to be significantly remodeled and strengthened in order to be placed back in service; and (iv) the tank farm located on the Citgo site is, as a whole, structurally defective at this time, since it is structured for delivery of petroleum products by bazge only, and the nearby river channel has not be dredged to allow barge deliveries for several years. The tanks cannot be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same squaze £ootage and type on the site. 2. Finding that the proposed devetopment, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tctt increment financing is deemed necessary and that the increased market value of the site that could reasanably be expected to occur without the use of ta_Y increment frnancing 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 tar increments for the masimum duration of the district permitted by the ptan. Due to the excessive costs for the clearance, grading, and soil and pollution remediation of the Citgo Site, this project is feasible only through assistance, in part, from tax increment fmancing. The proposed development consists of an approximately 370,000 square foot manufacturing and distribution facility, the increase in market value of which is estimated to be appro�mately $12,500,000. The value of development on the Citgo Site expected to occur without the use of tas increment financing is $0, which is less than the estimated increase in ta�s�s� � q � _ ��g� market value expected to be created bythe proposed project(approximately $12,500,000) minusthe present value of the projected tas increments (approximately $8,SO�,Q00). 3. Finding that the Tax Increment Financing Plan conforms to the general pdan for the development or redeveZopment of the municipality as a whole. The Citgo Site wili be appropriately zoned for the Project. The proposed redevelopment is consistent with the Saint Pau1 Mississippi River Corridor Plan which was originally adopted in 1481, and amendzd in 1987, and concluded that this site should be developed with labor-intensive industriai uses. 4. Finding that the Tox Increment Fznancing Plan for the District will afford maximum opportuniry, consistent with the sound needs of the City as a whole, for the develapment of the District by private enterprise. The establisl�ment of the District will resuit in the facilitation of redevelopment in the area of the City covered by ihe Disirict, will assist an the development of the new Science Museum of Minnesota, and will result in the retention and creation of jobs for residents of the City. 5. Finding that the City does not elect to compute the tax increments in accordance with Minnesota Statutes, Section 469.17� Subd 3, ctause (b). The failure to elect to calculate increment in accordance with the above-referenced statute results in a greater amount of increment to be captured from the District, which will facilitate the financing of the Project. eas a s sen ey os om / ✓ o �ns � arns ✓ egar � 0 on j ✓ une / t/ � � � 1475731 2 Adopted by Council: Date �,��___��.j \ ��T'1 � Adoption Certified by Council Secretary By: �� a . �7�,1 = Approved by Mayor: Date �� 3 ! � �t— � Requested by Departrnent of: � Form Approved by City Attomey � Approved by Mayor for Submission to Council � q �-��9D 1475731 RUG-13-1997 10=17 CITIZEN SERVICE OFFICE 512 255 8689 P.01iH3 q.� _�1°t� FACSIMILE �'AANSMISSTON COV�R SHEET �ro: ,�aa� �ROM: �� CXTY OF SAZ1lTT P.AUZ, -� - �5 7� DATE: c�--f�—q'7 Fax #: Fax �: 6I2-266-8689 ;.`- pages (inc. thzs page) I�TOTE TO FACSTMTLE OPBRATOR please deliver this facsi�niJe n�ansnZissioil to the above addressee. If you did not receive all of the pages in �ood candition, please advise the Citi2en Service Office at 266-89&9 at your earliesr convenicnce. �'t -\\�o ATTACHMENT A RESOLUTION #_ The reasons and facts supporting the findings for the adoption of the Tas "Plan") for the Plastics, Inc. Redevelopment TaY Increment Financing District (the to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the District is a redevelopment district as defzned in Subd. 10, paragraph (a), clause (1). The District consists of contiguous pazcels. The total square 1,143,000 square feet, and, and 70% of that number is 800,100 square f 875,269 square feet and is "occupied" by buildings, streets, utilities or (131,290 square feet) of the pazcel is covered by improvements (inci There are buildings in the Dishict (_ of them storage tanks), � substandazd because: [to be provided for each building or tank). � �inancing Plan (the as required pursuant Statutes, Section 469.174, �tag�e of the Distdct is approximately �he Citgo pazcel within the District is er improvements, because at least IS% g above ground oil/gas storage tanks). (being %) of which are structurally 2. Finding that the proposed development, in the opinio of the Council, would not occur solely through private inveshnent within the reasonably foreseeable future nc� therefore, the use of tax increment financing is deemed necessary and that the increased market value o the site that could reasonably be expected to occur without the use of tax increment financing would be less an the increase in the market value estimated to resudt from the proposed development after subtracting th present value of the projected tar increments for the maximum duration of the district permitted by the pla . Due to the excessive costs for the clearance, ' g, and soil and pollufion remediation of the Citgo Site, this project is feasible only through assistance, in art, from taa� increment financing. The proposed development consists of an appro�mately 370,000 squat foot manufactuting and distribution facility, the increase an mazket value of which is estimated to be appro mately $12,500,000. The value of development on the Citgo Site expected to occur without the use of increment financing is $0, which is less than the estimated increase in mazket value �pected to be created by e proposed project (appro�mately $12,500,000) minus the present value of the projected tax increments (appr ''mately $8,500,000). 3. Finding that the Tax redevelopment ofthe municip The Citgo Site will be Saint Paul Mississippi concluded that this site, �ement Financing Plan conforms to the general plan for the development or as a whole. >riately zoned for the Project. The proposed redevelopment is consistent with the Corridor Plan which was originally adopted in 19&l, and amended in 1987, and be developed with labor-intensive indushial uses. �"� � /7-�/.� °{�-1190 4. Finding that the Tca Increment Financing Plan for the District will afford mcttimum opportunity, coruistent with the sound needs of the City as a whole, for the deveZopment of the District by private enterprise_ The establishment of the District will result in the facilitation of redevelopment in the azea of the ity covered by the District, will assist in the development of the new Science Museum of Minnesota, and result in the retention and creation of jobs for residents of the City. �!�l►Q'� ��i� �___ : � � � ___ .�___ •�___ •�___ �___ ____ Adopted by Council: Date Adoption Certified by Council Secretary � Approved by Mayor: Date � Requested by Departrnentof � Form � Approved by Mayor for Subm'lssion to Council By: �d'��T _ �� 1475737 e v s � a � i (; �� 2 RUG-13-1997 10�18 CITIZEN SERUICE OFFICE .�1�i Lu u-�J �� J u L..!�.. � ��o •r^°�c��c�a �.�� ; � � ''j ^L `=7 O �j Q � ---- � I_---� ; �� 1 ` `�.�� .+" ``-+ art � .", U C� �>� �_"� �,�.Cl'--= �,z � "=-�j '`"� � � '� � Q �= }:�' ...�� ,�� --�, -•��_ _ _ �--� �; 3. ` ^� rom.0 C' j I� a � �^� �QD��o��'� W c ,� �CQ�=��:�o� `� i . • ^ ' pG . • �.Q ...): �..•J�P �M �O 1 � L.C�ONS Mt2�� a � � �Z�� ♦�y�i'� +�� _ . .� 'S . .�.- �C�� r : �� • ,� OY �C •'��Y ' v e a �C�� rs. � IJ r � ' <=— � ._. .:::- �,,... � Q .� ..+.' . : .;' = Y C! L Ll,'�� :./ � �a�� - �1: �. �: �� n � � r�� , � �� -.,.o_. oao�� s � ( =*• ( o ....« ,.. o ;�o� �. ��`11��01V .�. ��0� � �" � I_�! �' S � • Q � l �� C� C� �Q .��. � ` , ..� � -� r� I^ � �� M1..-+ . �-..z ; 1 � �� fira�e �c + s ! �� .°��a� . • b � Or• . a � /_�� a r� -.---� lNDUSTRIAL DEVEl.OPMENT DISTRICT � REDEVELOPMEN'CTAXINCREMENT FiI�tANClNG DtSTRIGT 8/23/97 �r / � � , / � / f 612 266 8689 P. � ��'+a.. �/;•- �_. . ..� �i! �'- ' p � / "c a ` y� �1 :1. �c � � '�l-� � / � S � � � / � ) :( - ~p x� ` �.: � , I �. �i.... ��.JJL �� y n � J; , �`'` � , J �r� �° . / •' .i�/ J - ° � �% . F . � �. �, ;i' /. °.�►,�,� .: ' �» y� C - i _� . / n 4 �� ' � /• i � a �'� ��' ; L `� � Y". 4 : ..:��.., � C , �:�'•� ,_ y '�k� ... i-- y R�� 4 p � . � S °` . �— '�� _ . � �� { > r�---�--•� ; '�.1� L� o C� L�� [� '� U !,t —.; P�ASTIGS WC REpEVE�.OPMEN'L T�TAL P.03 RUG-13-1997 10�17 CITIZEN SERUICE OFFICE 612 266 8689 P.02iO3 o�� - i�°�D Notice of Public Hearing NOTICE IS HEREBX GIVEN that a public hearing before the C.fluncii of the City of Saint Paut urili be held in the City Councii Chambers, City Hall, 15 Wesi ICelln� Boulevazd, Saint Paul, Minnesota at 3:30 p_m on August 13, 1997, Yo consider a proposal of the Port Authority of the City of Saint Pau] to adopt a TAX INCRE�T FIN.4NCING PLAN FOR TT� PLASTICS, INC. RTDEVELOPMENT ANA IiAZAItAOUS SUBSTANCE SUBDISTRICT TAX INCREMENT PINANCTNG DISTRICT (the "Plan"). Copies of the Plan aze on file with the City Clerk, Room 386, City Hall, and with tbe Port Authoriry, 345 St. Peter Street, 1900 Landmazk "Z'owers, and are available for aispeckion during reguiar business hours. Upon said public hearmg all interested persons will be given the opportunity to be heard or submit wri.tten comments and the City Council will consider, among other maiters, as providefl in Minnesota 5tatutes, Section 469.175, Subd. 3, (1) whethez ihe Plan conforms to the Saint Paul Comprehensiva �'lan, (2) whether tha Plan will afford maximum opporhwity consiste,nt with the sound needs of the Gity as a whole for the development of the district in cooperation with private enterprise, and (3) whethez the Plan should Ue approved. Tlie Plastics, Inc. Redevelopment and Hazardous Substance Subdistrict Tax Increment Pinancin� District encompass all property and adjacem rights-of-way as found on the attached map. l�ated: July 31. 1997 FRIsD OWUSU, Cit�� CIerk [ATTACfI MAPI ,�n„< i ! � 1 ,� � � ��6�gS7� � � Ame�c�.�e�, - i��,n.e.�.:� Pc �-J� 0.\ a�} q-� �-,�.€�� .�.... , �' Council File # `� 7 —1 \gp Green Sheet # �_ C l� MfNNESOTA Presented Refesed To Committee Date RESOLUTION APPROVING T�IE TAX INCREMENT FINANCING PLAN FOR THE PLASTICS, INC. REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND HAZARDOUS SUBSTANCE SUBDISTRICT, AND AUTHORIZING (A) THE EXTENSION OF CROSBY LAKE PROJECT GEMINI (B) Tf� ISSUANCE BY TF� PORT AUTHORITY OF $2,000,000 SUBORDINATED TAX INCREMENT BONDS, AND (C) THE ESTABLISHMENT OF THE PLASTICS PROJECT AS A"PRIORITY PROJECT" FOR PURPOSES OF APPLYING FOR CERTAIN GRANT FUNDS, ALL IN CONNECTION WITH TI� RELOCATION OF PLASTICS, INC. TO THE CITGO SIT'E BE IT RESOLVED by the Council of the City of Saint Pau1, Minnesota, as follows: Section 1. citals. 1.01. It has been proposed that the Port Authority of the CiTy of Saint Paul (the "Port Authority") establish the Plas6cs, Inc. Redevelopment Tax Increment Financing District (the "District") and a Hazardous Substance Subdistrict therein (the "HSS") and, in connection therewith that the City of Saint Paul (the "City") approve the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.179, inciusive; and Minnesota Statutes, Sections 469.048 through 469.068, inclusive; and 1.02. The Port Authority has investigated the facts and has caused to be prepared a proposed Tax Increment Financing Plan (the "Plan") for the District and the HSS. 1.03. On November 6, 1996, pursuant to Council File No. 96-1376, the City Council approved the execution of a Development Agreement with the Science Museum of Minnesota (the "SMM"} which requires the City to acquire property which is necessary for the SMM's new 1475731 � 1 �� 1 �3 g_ n-97 °1�-1190 river&ont facility. Plastics, Inc. ("Piastics") is currenfly located on a portion of such property (the "Chestnut Site") and needs to be relocated in order for the SMM project to move forwazd. 1.04. It has been proposed that the approximately 26-acre site located approximately one mile to the west of downtown Saim Paui at Shepard Road and James Avenue (the "Citgo Site") be redeveloped for purposes of buiiding an appro�mately 370,004 square foot manufacturing and distribution facility to be purchased by Piastics upon demolition of their current facility at the Chestnut Site. The acquisition, clearance, remediation and improvement of the Chestnut Site and the Citgo Site is collecfively referred to herein as the "Project". 1.05. It has been pmposed that the City contribute approximately $3,200,000 ($2,700,000 of which is already budgeted as part of the Science Museum Project) to the costs of the Project by paying certain of the costs associated with the u�ansfer of Plastics from the Chesmut Site, and its facility in F,agan, to the new faciliry at the Citgo 5ite. 1.Q6. The Citgo Site is not presently located within the Crosby Lake Project Gemini Zone. It has been proposed that a noncontiguous eacpansion of the Crosby Lake Project Gemini Zone be approved in order to encompass the Citgo Site, and to provide electric utility service to Plastics at a reduced rate. 1.07. It has also been proposed that: (a) the Port Authority issue bonds (the "Bonds") in a principal amount which wiil produce net available funds to be applied to costs of the Project of at Ieast $13,80Q,000, but in any event not to exceed the principal amount of $14,650,OOQ to finance a portion of the costs of the Project, including specifically the costs of acquisition, clearance, remediation and improvement of the Citgo Site, which bonds aze to be secured by the general obligation of the City which will, in hun, be secured by a first lien pledge of tax increments with respect to appro�mately $6,600,000 of the Bonds, and, with respect to the remainder of the Bonds will be secured by a lien on taY increments subordinate to, in order of priority, such first lien pledge, the payment of the NSP Bonds (as defined herein), and the payment of adminisirative charges in connection with the Dishict; (b) the Council consider adopting an ordinance authorizing the issuance of said Bonds by the Port Authority under Minnesota Statutes, Secrion 469.060, and pledging the City's general obligation thereto; and (c) the Port Authority issue its $2,000,000 subordinated ta�c increment bonds (the "NSP Bonds") which will be secured by a second lien on tax increments, in order to finance additional costs of the Project. 1.08 The Port Authority andlor the City, as applicable, have performed ail actions required by law to be performed prior to the estabiishment of the District and the HSS and the adoption of ttte Plan relating thereto, including, but not Iimited to, notificarion of the County Commissioner in whose district the District is located, Ramsey County and School District No. 625 having taxing jurisdiction over the properry to be included in the District and the HSS, and the hoiding of a pubiic hearing after published notice as required by law. 1475731 � � /�-�? ° 1'1-11q'� Section 2. Findings by the Citv for the A��roval of the T� Increment Financing Plan for the Plastics_ Inc. Redevelopment Tax Increment Financing District and the Ha7ardous Substance Subdistrict therein. 2A1, The Council hereby finds that the District is a redevelopment district pursuant to Minnesota Statutes, Secfion 469174, Subd. 10, paragraph (a), clause (1), and the HSS is a hazardous substance subdistrict pursuant to the Ivlinnesota Statutes, Section 469.175, Subd. 7. The Port Authority shall make the findings necessary to qualify the HSS. 2.02. The Council hereby finds that the District and the HSS, and the approval of the Plan relating thereto, aze intended and, in the }udgment of this Council, the effect of such actions wiil be, to provide an impetus for redevelopment in the Dish�ict and to further the public purposes and accomplish certain objectives as specified in the Plan. 2.03. The Council fiuther finds that the proposed development or redevelopment in the District, in the opinion of the City, would not occur solely through private investment within the reasonably foreseeable future and that the increased mazket value on the site that could reasonably be expected to occur without the use of tax increment fmancing (being $0) would be less than the increase in the mazket value estimated to result from the proposed development (being approzcimately $12,500,000) after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Plan (being approximately $8,500,000) and, therefore, the use of tax increment financing is deemed necessary; that the Plan conforms to the general plan for the development or redevelopment of the City as a whole; and that the Pian will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. 2.04. The City does no elect to compute the tax increments in accordance with Minnesota Statutes, Section 469177, subd. 3, clause (b), meaning that tax increments will be determined before the applicarion of the fiscal disparities provisions of Minnesota Statutes, Chapter 473F. 2.05. The City elects to make a qualifying local contribution in accordance with Minnesota Statutes, Seetion 273.1399, Subd. 6(d), in order to qualify the District for exemption from state aid losses set forth in Section 273.1399. 2.06. The Council further finds, declares and determines that the City made the above findings stated in this Section 2 and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Attachment A. Secrion 3. Approvai of the Plan. The Plan for the District and the HSS is hereby approved and adopted, and shall be placed on file in the office of the City Clerk. 7475737 � �� l� °1��to Secfion 4. Acknowledgment Reearding Tax Increments. The Council acknowledges that the County Auditor will forwazd all t� increments from the District and the HSS to the Port Authority. Section 5. Approval of Pro�ect Gemini for District. The Crosby Lake Project Gemini Zone is hereby eapanded to encompass the area of the District Secfion 6. Qtdinance Authorizing Tssuance of Bonds. City staff is hereby authorized and directed to submit an ordinance to the Council for its consideration, which authorizes the issuance of the Bonds as described in pazagraph 1.07 above. Section 7. A��roval of Subordinated Tax Increment Bonds. '7.01. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority shali be issued only with the consent of the City Council of the City, by resoluzion adopted in accordance with law. 7.02. The Council hereby approves the issuance of the NSP Bonds by the Port Authority for the purposes described herein and in the Plan, the exact details of which, including but limited to, provisions relating to maturity and interest rate, aze to be detemuned by the Port Authority, and the Council hereby authorizes the issuance of any additional bonds or notes (inciuding refund'vng bonds or notes) by the Port Authority found by the Port Authority to be necessary for canyiug out the purposes for which the NSP Bonds are issued. Section 8. "Prior'�yt Project" for DTED and MIF Funds. The Council hereby establishes this Project as a"Priority ProjecP' for the purposes of applying for grant funds from the Department of Trade and Economic Development and the Minnesota Investment Fund for funds to finance the Project, and the Council herehy approves in concept the applicarion to the State of Minnesota for $500,000 in Minnesota Investment Funds for this Project. Section 9. Ratification of Prior Aetions. The prior actions of the City staff and Port Authority staff in connection with the preparation of the Plan, the distribution of the Plan to the County and School Dishict, and the publication of the nofice of public hearing, aze hezeby ratified and confirmed. 1475731 � �� -r7-�7 St. Paul Port Johnson, L. Hansen, B. Morin on September 24, 1997 9 � GREEN SHEET � DEPAATMENT DIRECTOR � CftYATfORNEY � � —� � FOR gUDGErD1AECTOR � � MAYOR (OR ASSISTAN'n TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE} °l1- ��°�a N° -13098 INITIAIIDATE — �CINCAUNGL _ � CITY CLERK _ � FIN. & MGt SERVICES DIR. a — "O Approval of the Plastics, Inc. Redevelopment and Hazardous Substance Subdistri Tax Increment Financing Paln for the Dist and make the necessary statutory findings and elections in connection with the plan and the Dis±rict and approve the issuance by the Port Authoxity of $2,000,000 of second lien t� increnent bonds. w _ PIANNING CAMMISSION _ ( __ CIB GOMMITTEE _ _ � STAFF _ _ _ �ISTRICTCAURT _ _ SUPPOR7S WHICH COUNCIL OBJECTIVE� Industrial Development PERSONAL SERVICE CONTRACTS MUST AMSWER THE FOLL4WING �UESTIONS: 1. Ha5 this personNirm ever worketl under a contract fOr this department? YES NO 2. Has ihis personfiirm ever been a city employee? YES NO 3. Does this person/Firm possess a skiil not normally possessetl by aoy current city employee? YES NO Explain all yes answers on separate sheet antl attach to green sheet Approval of this Tax Increment Financing Plan and Aazardous Substance Subdistrict will assist the redevelopment and remediation of the Citgo site £or Plastics, Inc. IF APpRWED. Plastics, Inc. will construct a 370,000 square foot manufacturing facility at the Citgo site and retain andJor relocate 350 jobs in Saint Paul. None IF NOT '_astics, Inc. will be forced to relocate out of the City of Saint Paul. AMOUNT OF TRANSACTION $ 16, 650, 000 COSTIREVENUE BUD6ETE0 (CIRCLE ONE) YES NO Tax Increment Financing, Note Payments, iGSOURCE Potential_ GY'ant Rer.ei�� ,��_V� AC71VIiYNUMBER 4L INFORMAiION' (EXPLAIN) ATTACHMENT A RESOLUTION # �I �— //`�o r��qi�_11R� ��z� � �� a a � ��. a� The reasons and facts supporting the fmdings for the adoption of the TaY Increment Financing Plan (the "Plan") for the Plastics, Inc. Redevelopment TaY Increment Financing Aistrict (the "DistricY') as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 aze as follows: 1. Finding tkat the District is a redevelopment district as defzned in Minnesota Statutes, Section 469.174. Subd. 10, paragraph (a), clause (1). The District consists of 3 contiguous pazcels. The total squaze footage of the District is approximately 1,143,000 square feet, and, and 70% of that number is 800,100 square feet. The Citgo parcel within the District is 875,269 square feet and is "occupied" by buildings, streets, utilities or other improvements, because at least 15°/u (131,290 square feet) of the parcel is covered by improvements (including above ground oiUgas storage tanks). There aze 21 buildings in the District (18 of them storage tanks). All of the storage tanks (approximately 85% of the buildings in the District) aze substandazd for the following reasons (i) as evidenced by a notice dated September 9, 1997 from inspector S.J. Wings of the City of Saint Paul, the tanks have been abandoned for more than 12 months, and therefore are in violation of Section 79.116 of the Uniform Fire Code, which requires that the tanks be removed; (ii) as evidenced by a Ietter dated September 24, 1997 from William Gilbertson, the head of Citgo's real estate department, all of the tanks are considered functionally obsolete and not usable for their intended purpose, and should be removed; (iii) representatives of TKDA, the engineering firm retained by the Port Authority in connection witY� the demolition to occur on the Citgo Site, have reported that, on the basis of a viewing of the interior of a number of representative starage tanks, the inside of the tanks have deteriorated, and the tanks would need to be significantly remodeled and strengthened in order to be placed back in service; and (iv) the tank farm located on the Citgo site is, as a whole, structurally defective at this time, since it is structured for delivery of petroleum products by bazge only, and the nearby river channel has not be dredged to allow barge deliveries for several years. The tanks cannot be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same squaze £ootage and type on the site. 2. Finding that the proposed devetopment, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tctt increment financing is deemed necessary and that the increased market value of the site that could reasanably be expected to occur without the use of ta_Y increment frnancing 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 tar increments for the masimum duration of the district permitted by the ptan. Due to the excessive costs for the clearance, grading, and soil and pollution remediation of the Citgo Site, this project is feasible only through assistance, in part, from tax increment fmancing. The proposed development consists of an approximately 370,000 square foot manufacturing and distribution facility, the increase in market value of which is estimated to be appro�mately $12,500,000. The value of development on the Citgo Site expected to occur without the use of tas increment financing is $0, which is less than the estimated increase in ta�s�s� � q � _ ��g� market value expected to be created bythe proposed project(approximately $12,500,000) minusthe present value of the projected tas increments (approximately $8,SO�,Q00). 3. Finding that the Tax Increment Financing Plan conforms to the general pdan for the development or redeveZopment of the municipality as a whole. The Citgo Site wili be appropriately zoned for the Project. The proposed redevelopment is consistent with the Saint Pau1 Mississippi River Corridor Plan which was originally adopted in 1481, and amendzd in 1987, and concluded that this site should be developed with labor-intensive industriai uses. 4. Finding that the Tox Increment Fznancing Plan for the District will afford maximum opportuniry, consistent with the sound needs of the City as a whole, for the develapment of the District by private enterprise. The establisl�ment of the District will resuit in the facilitation of redevelopment in the area of the City covered by ihe Disirict, will assist an the development of the new Science Museum of Minnesota, and will result in the retention and creation of jobs for residents of the City. 5. Finding that the City does not elect to compute the tax increments in accordance with Minnesota Statutes, Section 469.17� Subd 3, ctause (b). The failure to elect to calculate increment in accordance with the above-referenced statute results in a greater amount of increment to be captured from the District, which will facilitate the financing of the Project. eas a s sen ey os om / ✓ o �ns � arns ✓ egar � 0 on j ✓ une / t/ � � � 1475731 2 Adopted by Council: Date �,��___��.j \ ��T'1 � Adoption Certified by Council Secretary By: �� a . �7�,1 = Approved by Mayor: Date �� 3 ! � �t— � Requested by Departrnent of: � Form Approved by City Attomey � Approved by Mayor for Submission to Council � q �-��9D 1475731 RUG-13-1997 10=17 CITIZEN SERVICE OFFICE 512 255 8689 P.01iH3 q.� _�1°t� FACSIMILE �'AANSMISSTON COV�R SHEET �ro: ,�aa� �ROM: �� CXTY OF SAZ1lTT P.AUZ, -� - �5 7� DATE: c�--f�—q'7 Fax #: Fax �: 6I2-266-8689 ;.`- pages (inc. thzs page) I�TOTE TO FACSTMTLE OPBRATOR please deliver this facsi�niJe n�ansnZissioil to the above addressee. If you did not receive all of the pages in �ood candition, please advise the Citi2en Service Office at 266-89&9 at your earliesr convenicnce. �'t -\\�o ATTACHMENT A RESOLUTION #_ The reasons and facts supporting the findings for the adoption of the Tas "Plan") for the Plastics, Inc. Redevelopment TaY Increment Financing District (the to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the District is a redevelopment district as defzned in Subd. 10, paragraph (a), clause (1). The District consists of contiguous pazcels. The total square 1,143,000 square feet, and, and 70% of that number is 800,100 square f 875,269 square feet and is "occupied" by buildings, streets, utilities or (131,290 square feet) of the pazcel is covered by improvements (inci There are buildings in the Dishict (_ of them storage tanks), � substandazd because: [to be provided for each building or tank). � �inancing Plan (the as required pursuant Statutes, Section 469.174, �tag�e of the Distdct is approximately �he Citgo pazcel within the District is er improvements, because at least IS% g above ground oil/gas storage tanks). (being %) of which are structurally 2. Finding that the proposed development, in the opinio of the Council, would not occur solely through private inveshnent within the reasonably foreseeable future nc� therefore, the use of tax increment financing is deemed necessary and that the increased market value o the site that could reasonably be expected to occur without the use of tax increment financing would be less an the increase in the market value estimated to resudt from the proposed development after subtracting th present value of the projected tar increments for the maximum duration of the district permitted by the pla . Due to the excessive costs for the clearance, ' g, and soil and pollufion remediation of the Citgo Site, this project is feasible only through assistance, in art, from taa� increment financing. The proposed development consists of an appro�mately 370,000 squat foot manufactuting and distribution facility, the increase an mazket value of which is estimated to be appro mately $12,500,000. The value of development on the Citgo Site expected to occur without the use of increment financing is $0, which is less than the estimated increase in mazket value �pected to be created by e proposed project (appro�mately $12,500,000) minus the present value of the projected tax increments (appr ''mately $8,500,000). 3. Finding that the Tax redevelopment ofthe municip The Citgo Site will be Saint Paul Mississippi concluded that this site, �ement Financing Plan conforms to the general plan for the development or as a whole. >riately zoned for the Project. The proposed redevelopment is consistent with the Corridor Plan which was originally adopted in 19&l, and amended in 1987, and be developed with labor-intensive indushial uses. �"� � /7-�/.� °{�-1190 4. Finding that the Tca Increment Financing Plan for the District will afford mcttimum opportunity, coruistent with the sound needs of the City as a whole, for the deveZopment of the District by private enterprise_ The establishment of the District will result in the facilitation of redevelopment in the azea of the ity covered by the District, will assist in the development of the new Science Museum of Minnesota, and result in the retention and creation of jobs for residents of the City. �!�l►Q'� ��i� �___ : � � � ___ .�___ •�___ •�___ �___ ____ Adopted by Council: Date Adoption Certified by Council Secretary � Approved by Mayor: Date � Requested by Departrnentof � Form � Approved by Mayor for Subm'lssion to Council By: �d'��T _ �� 1475737 e v s � a � i (; �� 2 RUG-13-1997 10�18 CITIZEN SERUICE OFFICE .�1�i Lu u-�J �� J u L..!�.. � ��o •r^°�c��c�a �.�� ; � � ''j ^L `=7 O �j Q � ---- � I_---� ; �� 1 ` `�.�� .+" ``-+ art � .", U C� �>� �_"� �,�.Cl'--= �,z � "=-�j '`"� � � '� � Q �= }:�' ...�� ,�� --�, -•��_ _ _ �--� �; 3. ` ^� rom.0 C' j I� a � �^� �QD��o��'� W c ,� �CQ�=��:�o� `� i . • ^ ' pG . • �.Q ...): �..•J�P �M �O 1 � L.C�ONS Mt2�� a � � �Z�� ♦�y�i'� +�� _ . .� 'S . .�.- �C�� r : �� • ,� OY �C •'��Y ' v e a �C�� rs. � IJ r � ' <=— � ._. .:::- �,,... � Q .� ..+.' . : .;' = Y C! L Ll,'�� :./ � �a�� - �1: �. �: �� n � � r�� , � �� -.,.o_. oao�� s � ( =*• ( o ....« ,.. o ;�o� �. ��`11��01V .�. ��0� � �" � I_�! �' S � • Q � l �� C� C� �Q .��. � ` , ..� � -� r� I^ � �� M1..-+ . �-..z ; 1 � �� fira�e �c + s ! �� .°��a� . • b � Or• . a � /_�� a r� -.---� lNDUSTRIAL DEVEl.OPMENT DISTRICT � REDEVELOPMEN'CTAXINCREMENT FiI�tANClNG DtSTRIGT 8/23/97 �r / � � , / � / f 612 266 8689 P. � ��'+a.. �/;•- �_. . ..� �i! �'- ' p � / "c a ` y� �1 :1. �c � � '�l-� � / � S � � � / � ) :( - ~p x� ` �.: � , I �. �i.... ��.JJL �� y n � J; , �`'` � , J �r� �° . / •' .i�/ J - ° � �% . F . � �. �, ;i' /. °.�►,�,� .: ' �» y� C - i _� . / n 4 �� ' � /• i � a �'� ��' ; L `� � Y". 4 : ..:��.., � C , �:�'•� ,_ y '�k� ... i-- y R�� 4 p � . � S °` . �— '�� _ . � �� { > r�---�--•� ; '�.1� L� o C� L�� [� '� U !,t —.; P�ASTIGS WC REpEVE�.OPMEN'L T�TAL P.03 RUG-13-1997 10�17 CITIZEN SERUICE OFFICE 612 266 8689 P.02iO3 o�� - i�°�D Notice of Public Hearing NOTICE IS HEREBX GIVEN that a public hearing before the C.fluncii of the City of Saint Paut urili be held in the City Councii Chambers, City Hall, 15 Wesi ICelln� Boulevazd, Saint Paul, Minnesota at 3:30 p_m on August 13, 1997, Yo consider a proposal of the Port Authority of the City of Saint Pau] to adopt a TAX INCRE�T FIN.4NCING PLAN FOR TT� PLASTICS, INC. RTDEVELOPMENT ANA IiAZAItAOUS SUBSTANCE SUBDISTRICT TAX INCREMENT PINANCTNG DISTRICT (the "Plan"). Copies of the Plan aze on file with the City Clerk, Room 386, City Hall, and with tbe Port Authoriry, 345 St. Peter Street, 1900 Landmazk "Z'owers, and are available for aispeckion during reguiar business hours. Upon said public hearmg all interested persons will be given the opportunity to be heard or submit wri.tten comments and the City Council will consider, among other maiters, as providefl in Minnesota 5tatutes, Section 469.175, Subd. 3, (1) whethez ihe Plan conforms to the Saint Paul Comprehensiva �'lan, (2) whether tha Plan will afford maximum opporhwity consiste,nt with the sound needs of the Gity as a whole for the development of the district in cooperation with private enterprise, and (3) whethez the Plan should Ue approved. Tlie Plastics, Inc. Redevelopment and Hazardous Substance Subdistrict Tax Increment Pinancin� District encompass all property and adjacem rights-of-way as found on the attached map. l�ated: July 31. 1997 FRIsD OWUSU, Cit�� CIerk [ATTACfI MAPI ,�n„< i ! � 1 ,� � � ��6�gS7�