HomeMy WebLinkAbout12-20-2004 EDA PacketAMENDED
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
DECEMBER 20, 2004
5:45 P.M.
1. Call to Order and Roll Call
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Consideration of Minutes of September 27, 2004
Consideration of Resolution No. 04-04 Terminating Tax Increment Financing
District No. 1-8 and Directing the Decertification by the County Auditor
Consideration of Resolution No. 04-05 Approving Modification of Tax Increment
Financing District Plan for Tax Increment Financing District No. 1-11.
Consideration of Resolution No. 04-06 Awarding the Sale of, and Providing the
form, terms, covenants and directions for the Issuance of its $1,000,000 Taxable
Tax Increment Revenue Note, Series 2004
onsideration of Resolution No. 04-07 Authorizing Internal Loan in Connection
with Tax Increment Financing District No. 1-11
7. Adjourn
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AMENDED
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
DECEMBER 20, 2004
5:45 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of September 27, 2004
3. Consideration of Resolution No. 04-04 Terminating Tax Increment Financing
District No. 1-8 and Directing the Decertification by the County Auditor
4. Consideration of Resolution No. 04-05 Approving Modification of Tax Increment
Financing District Plan for Tax Increment Financing District No. 1-11.
5. Consideration of Resolution No. 04-06 Awarding the Sale of, and Providing the
form, terms, covenants and directions for the Issuance of its $1,000,000 Taxable
Tax Increment Revenue Note, Series 2004
XConsideration of Resolution No. 04-07 Authorizing Internal Loan in Connection
with Tax Increment Financing District No. 1-11
7. Adjourn
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DRAFT
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DATE
MEMBERS PRESENT
MEMBERS ABSENT
OTHERS PRESENT
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
: September 27, 2004
: J. Bergeson, D. Carlson, C. Dahl, J. Reinert, D. Stoltz
: None
: Gordon Heitke, Mary Divine, Michael Grochala and Bill
Hawkins
CONSIDERATION OF MINUTES OF FEBRUARY 23, 2004
EDA Member Bergeson moved to approve the minutes of the February 23, 2004 EDA Meeting. EDA
Member Stoltz seconded the motion. Motion passed unanimously.
CONSIDERATION OF SALE OF PROPERTY TO E.G. RUD & SONS LAND SURVEYORS
A.
Consideration of Resolution No. 04-02 Authorizing the Sale of Property.
Ms. Divine summarized the Staff report, indicating Staff is recommending approval.
President Reinert opened the public hearing at 6:12 p.m.
The EDA asked about access to the property, which Ms. Divine explained comes from Hodgson Road
and also a left turn lane that goes to the Shaw Property, where access would have to be granted.
EDA Member Carlson expressed concern about the amount of lakeshore, and if the City was getting
the full value for the property. She indicated it is really six acres of property, even if it is not all
buildable land. She questioned why the City would not try to keep land along the lake since they are
not being paid for it anyway. She noted it is a good company that will provide a quality building, but
she is concerned they are missing an opportunity for public ownership of lakeshore at a time when
they are looking to purchase lakeshore.
Staff explained how the piece of property came to be, noting it was pieced together from several other
situations. The utility easement on the property was clarified, as well as the fact that that easement is
a power company easement and cannot be vacated.
Ms. Divine clarified the appraisal is based on the full amount of acreage and on market value, not on
the buildable portion of land. She indicated while this property was not advertised for sale because
Staff was working on clearing up title issues, they have had people come in and ask about it, and
when the property was appraised they received this full market value offer, which they brought to the
EDA. She indicated if there were going to turn down this offer and put it on the market they would
have to make the decision to sell it for more than the appraised value.
EDA MINUTES SEPTEMBER 27, 2004
DRAFT
46 Jason Rud, Rud and Sons gave the history of the company, noting they are anxious to move their
47 offices to this property in Lino Lakes. He noted they have one tenant, who is a civil engineer that will
48 move with them, and gave a brief description of the type of building they would envision.
49
50 President Reinert closed the public hearing at 6:31 p.m.
51
52 City Attorney Hawkins noted a correction to the resolution, the second to the last paragraph, which
53 should read `Staff and City Attorney are hereby authorized and directed to prepare a purchase
54 agreement with the Buyer for the purchase of the property for the amount of $300,000.'
55
56 EDA Member Bergeson stated he would support this action, and thinks Staff has negotiated in good
57 faith. He indicated this is not necessarily a highly saleable parcel, and he thinks the use is ideal. He
58 does not want a high traffic user close to the comer.
59
60 EDA Member Dahl disagreed, indicating she feels this is a highly prized corner as well as being
61 lakeshore. She did agree Staff did a good job bringing this offer.
62
63 Community Development Director Grochala offered that the plat includes a portion of the lake, so
64 nearly half of the six acres is lake, and the remaining land is further encumbered with easements. He
65 stated after applying setbacks, the area you could actually place a building on is about a half acre
66 parcel, therefore the appraiser averaged out the square footage values and came up with an appraisal
67 of $300,000. He noted they are getting more out of this parcel than Staff thought possible.
68
69 EDA Member Stoltz expressed his support for the sale and for Staffs process for determining fair
70 market value. He added this parcel has been dormant on the tax rolls so the longer the City delays the
71 sale the longer the lack of income will continue. He agreed it is a gateway to the community, and
72 believes the Rud and Sons building would be a great addition to the community.
73
74 EDA Member Carlson noted the ponding and following easement agreement is important to her, and
75 she thinks $300,000 is an appropriate bid, so she will support.
76
77 President Reinert echoed the comments that this is a good use of land. He indicated he agrees with
78 EDA Member Carlson that they should save lakeshore when they can, but would like to see it be
79 useable lakeshore and not just add maintenance for the City.
80
81 EDA Member Bergeson moved to adopt Resolution No. 04-02 authorizing the sale of property at the
82 northeast corner of Highway 23 and Highway 49, with the correction noted by City Attorney
83 Hawkins. EDA Member Stoltz seconded the motion.
84
85 Motion carried unanimously.
86
87 ADJOURNMENT
88
89 There being no further business, EDA Member Carlson moved to adjourn. EDA Member Bergeson
90 seconded the motion. Motion passed unanimously.
2
EDA MINUTES SEPTEMBER 27, 2004
DRAFT
91
92 Meeting adjourned at 6:50 p.m.
93
94 Transcribed by:
95 Karen Bucklen
96 TimeSaver Off Site Secretarial, Inc.
97
3
AGENDA ITEM 3
STAFF ORIGINATOR: Mary Alice Divine
DATE: 12/20/04
TOPIC:
Consideration of Resolution No. 04-04 Terminating
Tax Increment Financing District No. 1-8 and
Directing Decertification by the County Auditor
VOTE REQUIRED: 3/5
BACKGROUND:
TIF District No. 1-8 was created by the Economic Development Authority on April
28, 1997. The establishment of this 25-year Redevelopment District was in
response to several areas within the city that met the criteria for redevelopment
and had potential for redevelopment. Of the three sites within the district, only
one has redeveloped. Fairview Healthcare was provided with assistance to
redevelop the former Gethsemane Church site on the southwest corner of the
35W/Lake Drive and construct its clinic. All obligations under the EDA's
agreement to Fairview have been met.
The tax capacity generated by Fairview Clinic is approximately $23,000 and will
now be on the tax roles.
OPTIONS:
1. Approve Resolution No. 04-04 Terminating TIF District No. 1-8
2. Do not terminate the district.
3. Return to staff for further consideration
RECOMMENDATION:
Option 1
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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 04-04
TERMINATING TAX INCREMENT FINANCING (REDEVELOPMENT)
DISTRICT NO. 1-8 AND DIRECTING DECERTIFICATION THEREOF BY
THE COUNTY AUDITOR
WHEREAS, by adoption of a resolution April 28, 1997, the Economic Development
Authority of the City of Lino Lakes, Minnesota (the "Authority") has heretofore created Tax
Increment Financing (Redevelopment) District No. 1-8 (the "District"), located within
and has approved a Tax Increment Financing Plan (the "TIF Plan"
as amended, for the District to provide assistance to the Fairview Healthcare Clinic project; and
WHEREAS, the County Auditor of Anoka County has certified the original net tax
capacity and the original local tax rate of the District pursuant to the provisions of Minnesota
Statutes, Section 469.177; and
WHEREAS, as of the date hereof, all of the projects have been completed, all obligations
to which tax increment from the District has been pledged have been paid in full or defeased, and
the Authority has determined that it is in the best interests of the City to terminate and decertify
the District.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of
the City of Lino Lakes, Minnesota that (i) the District is hereby terminated and (ii) the Clerk -
Administrator shall provide a certified copy of this resolution to the County Auditor of Anoka
County so that the District may be decertified on the books and records of the County Auditor
with no further tax increment from the District being remitted to the City.
Adopted: December 20, 2004.
President
ATTEST:
Executive Director
AGENDA ITEM 4
STAFF ORIGINATOR: Mary Alice Divine
DATE: 12/20/04
TOPIC:
Consideration of Resolution No. 04-05 Approving
modification of Tax Increment Financing Plan for Tax
Increment Financing District No. 1-'11
VOTE REQUIRED: 3/5
BACKGROUND:
The Economic Development Authority created TIF District No. 1-11 on
November 24, 2003. The establishment of this 25-year Redevelopment District
was intended to provide a source of revenue for development of the city's
downtown area, known as Woods Edge, and is comprised mainly of the Arctic
Sandblasting site and the Tagg home.
In working with the Hartford Group and the YMCA on site planning for Woods
Edge, a more functional redesign of the YMCA site was completed to better
serve the entire development. However, the Tagg home site (PIN 17-31-22-12-
0005) is now a part of the YMCA site and no longer a part of the Woods Edge
Planned Unit Development
TIF District 1-11will be certified with Anoka County before year-end. This
resolution removes the Tagg home parcel from the district before certification.
That way, no parcel will be developed that is partly inside and partly outside a
TIF District.
Elimination of the parcel and delay in certification do not materially change the
impacts and TIF estimates in the plan.
OPTIONS:
1. Approve Resolution No. 04-05 Modifying TIF District No. 1-11
2. Do not modify the district.
3. Return to staff for further consideration
RECOMMENDATION:
Option 1
Exhibit 1
Map of Tax Increment Financing (Redevelopment) District No. 1-11
Proposed boundaries of Tax Increment
Financing (Redevelopment) District No.1-11
SPRINGSTED
Page 19
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 04-05
RESOLUTION APPROVING MODIFICATION OF TAX
INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 1-11
WHEREAS, by Resolution No. 03-11 approved November 24, 2003, the
Economic Development Authority (the "Authority") for the City of Lino Lakes (the
"City") approved the Tax Increment Financing Plan (the "Plan") for Tax Increment
Financing District No. 1-11 (the "TIF District"), pursuant to and in conformity with
Minnesota Statutes, Sections 469.090 through 469.1081 (the "EDA Act") and Sections
469.174 to 469.179 (the "TIF Act"); and
WHEREAS, by Resolution No. 03-209 approved November 24, 2003, the City
Council of the City, after a duly notice public hearing, approved the Plan for the TIF
District; and
WHEREAS, since that time the City and Authority have diligently worked to
negotiate a development agreement regarding the TIF District, and determined to
postpone filing the TIF District for certification pending completion of such negotiations;
and
WHEREAS, on October 12, 2004, the City and Authority each approved a
Contract for Private Development between the City, Authority and Legacy Holdings/Lino
Lakes LLC (the "Contract"); and
WHEREAS, in reviewing the development contemplated in the Contract, the
AUTHORITY has determined that Parcel No. 17-31-22-12-0005 (the "Parcel") should be
eliminated from the TIF District; and
WHEREAS, under Section 469.175, subd. 4 of the TIF Act, the Authority may
modify the Plan for the TIF District without the notice and hearings required for a new
district, if the only change is to eliminate parcels from the TIF District, and the current
net tax capacity of those parcels equals for exceeds the net tax capacity of those parcels in
the district's original net tax capacity; and
WHEREAS, the TIF District has not yet been filed for certification, but the City
expects to file for certification by the end of December, 2004, in which event the original
net tax capacity for all parcels in the TIF District will be the tax capacity as of January 2,
2004 (for taxes payable in 2005); and
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WHEREAS, the Parcel to be eliminated does not yet have an original net tax
capacity, so at the time the TIF District is filed for certification, the boundaries of the
district will exclude the Parcel; and
WHEREAS, the Authority has determined to modify the Plan, prior to filing for
certification, in order to eliminate the Parcel; and
WHEREAS, elimination of the Parcel does not affect or impair the findings made
by the City Council, upon approval of the Plan, that the TIF District is a redevelopment
district under the TIF Act.
NOW THEREFORE, BE IT RESOLVED by the Economic Development
Authority of the City of Lino Lakes as follows:
1. The administrative modification to the Plan, eliminating the Parcel, is hereby
approved in substantially the form on file in City Hall.
2. Upon approval of the modification to the Plan by the City Council, the
Community Development Director is authorized to forward a copy of the
modified Plan to the Department of Revenue pursuant to Minnesota Statutes
469.175, subd.4a.
3. The City Clerk is authorized and directed to forward a copy of the Plan to
Anoka County and request that the Auditor certify the original tax capacity of
the TIF District, as modified, all in accordance with Minnesota Statutes
469.177.
DATED: December 20, 2004
President
ATTEST:
Executive Director
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2
City of Lino Lakes, Minnesota
Lino Lakes Economic Development
Authority
Tax Increment Financing Plan
for
Tax Increment Financing (Redevelopment)
District No. 1-11
(Legacy at Woods Edge Project)
Dated: November 24, 2003
Original Approved: November 24, 2003
Administrative Modification Approved: December 20, 2004
Prepared by:
SPRINGSTED INCORPORATED
85 E. Seventh Place, Suite 100
St. Paul, MN 55101-2887
(651) 223-3000
WWW. SPRINGSTED. COM
INTRODUCTION
The purpose of the administrative modification is to remove one parcel from the existing Tax
Increment Financing District. The parcel is 17-31-22-12-0005 and is shown in Section G. The
elimination of the parcel and delay in certification do not materially change the impacts and TIF
estimates in the original plan. No other changes are being proposed at this time.
TABLE OF CONTENTS
Section Pages)
A. Definitions 1
B. Statutory Authorization 1
C. Statement of Need and Public Purpose 1
D. Statement of Objectives 2
E. Designation of Tax Increment Financing District as a Redevelopment District 2
F. Duration of the TIF District and the Three Year Rule 3
G. Property to be Included in the TIF District 4
H. Property to be Acquired in the TIF District 5
I. Specific Development Expected to Occur Within the TIF District 5
J. Findings and Need for Tax Increment Financing 5
K. Estimated Public Costs 7
L. Estimated Sources of Revenue 7
M. Estimated Amount of Bonded Indebtedness 8
N. Original Net Tax Capacity 8
O. Original Tax Capacity Rate 9
P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment 9
Q. Use of Tax Increment 10
R. Excess Tax Increment 10
S. Tax Increment Pooling and the Five Year Rule 11
T. Limitation on Administrative Expenses 11
U. Limitation on Property Not Subject to Improvements - Four Year Rule 12
V. Estimated Impact on Other Taxing Jurisdictions 12
W. Prior Planned Improvements 12
X. Development Agreements 13
Y. Assessment Agreements 13
Z. Modifications of the Tax Increment Financing Plan 13
AA. Administration of the Tax Increment Financing Plan 13
AB. Financial Reporting and Disclosure Requirements 14
Map of the Tax Increment Financing District EXHIBIT I
Assumptions Report EXHIBIT II
Projected Tax Increment Report EXHIBIT III
Estimated Impact on Other Taxing Jurisdictions Report EXHIBIT IV
Market Value Analysis Report EXHIBIT V
City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
Section A Definitions
The terms defined in this section have the meanings given herein, unless the context in which
they are used indicates a different meaning:
"Authority" means the Lino Lakes Economic Development Authority.
"City" means the City of Lino Lakes, Minnesota; also referred to as a "Municipality".
"City Council" means the City Council of the City; also referred to as the "Governing Body".
"County" means Anoka County, Minnesota.
"Development District" means Municipal Development District No. 1 in the City, which is
described in the corresponding Development Program.
"Development Program" means the Development Program for the Development District.
"Project Area" means the geographic area of the Development District.
"School District" means Independent School District No. 831, Minnesota.
"State" means the State of Minnesota.
"TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive.
"TIF District" means Tax Increment Financing (Redevelopment) District No. 1-11.
"TIF Plan" means the tax increment financing plan for the TIF District (this document).
Section B Statutory Authorization
The Development District Act authorizes the City and Authority, upon certain public purpose
findings by the City Council, to establish and designate development districts within the City
and to develop and administer development programs therefore to meet the needs and
accomplish the public purposes specified in Section C. In accordance with the purposes set
forth in Section 469.124 of the Development District Act, the City Council and Authority have
established the Development District comprising the area described in Section E and have
adopted this Development Program.
The TIF Act also authorizes the Authority, with approval by the City, to establish and administer
tax increment financing districts within the Development District. Eligible public costs of the
Development District and TIF District may be paid for tax increments collected from the TIF
District.
Section C Statement of Need and Public Purpose
The City Council and Authority have determined that there is a need for the City to take certain
actions they deem necessary in order to encourage, ensure and facilitate development and
redevelopment by the private sector of underutilized, inappropriately used and unused land
located within the corporate limits of the City. Such actions are necessary in order to provide
additional employment opportunities for residents of the City and the surrounding area; to
improve the tax base of the City, the County and the School District, thereby enabling them to
SPRINGSTED Page 1
City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
better provide needed public services; and to improve the general economy of the City, the
County and the State.
Section D Statement of Objectives
The Authority seeks to achieve the following objectives through the establishment of TIF
District No. 1-11;
1. redevelop blighted areas as identified
2. provide employment and mixed housing opportunities within the community.
3. improve the tax base of Lino Lakes and the general economy of the City and State;
4. implement relevant portions of the Comprehensive Plan.
The Authority's specific purpose in establishing TIF District No. 1-11 is to aid in the creation of
a mixed use project consisting of Iifecycle housing including townhomes, apartments, condos,
and senior housing and commercial space. The project will consist of 161 owner -occupied
housing units, 147 rental housing units, and approximately 153,200 square feet of commercial
space. The Authority intends to use increment generated by the new developments to write
down land costs and the cost of special assessments, including the interest portion, site
improvements, streets, public utilities, and for public improvements to Lake Drive.
Section E Designation of Tax Increment Financing District as a
Redevelopment District
Redevelopment districts are a type of tax increment financing district in which one or more of
the following conditions exists and is reasonably distributed throughout the district:
(1) parcels comprising at least 70% of the area of the district are occupied by buildings,
streets, utilities, paved or gravel parking lots, or other similar structures and more than
50% of the buildings, not including outbuildings, are structurally substandard requiring
substantial renovation or clearance. A parcel is deemed "occupied" if at least 15% of
the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots;
or other similar structures.
(2) the property consists of vacant, unused, underused, inappropriately used, or
infrequently used railyards, rail storage facilities, or excessive or vacated railroad right-
of-ways; or
(3) tank facilities, or property whose immediately previous use was for tank facilities, as
defined in section 115C.02, subdivision 15, if the tank facilities:
(1)
(2)
(3)
have or had a capacity of more than 1,000,000 gallons;
are located adjacent to rail facilities; and
have been removed or are unused, underused, inappropriately used, or
infrequently used; or
(4) a qualifying disaster area, as defined in section 469.174, subdivision 10b.
For districts consisting of two more noncontiguous areas, each area must individually qualify
under the provisions listed above, as well as the entire area must also qualify as a whole.
SPRINGSTED Page 2
City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in
(1) above. The supporting facts and documentation for this determination will be retained by
the Authority for the life of the TIF District and are available to the public upon request.
"Structurally substandard" is defined as buildings containing defects or deficiencies in
structural elements, essential utilities and facilities, light and ventilation, fire protection
(including egress), layout and condition of interior partitions, or similar factors. Generally, a
building is not structurally substandard if it is in compliance with the building code applicable to
a new building, or could be modified to satisfy the existing code at a cost of less than 15% of
the cost of constructing a new structure of the same size and type.
A city may not find that a building is structurally substandard without an interior inspection,
unless it can not gain access to the property and there exists evidence which supports the
structurally substandard finding. Such evidence includes recent fire or police inspections, on -
site property tax appraisals or housing inspections, exterior evidence of deterioration, or other
similar reliable evidence. Written documentation of the findings and reasons why an interior
inspection was not conducted must be made and retained. A parcel is deemed to be occupied
by a structurally substandard building if the following conditions are met:
(1)
the parcel was occupied by a substandard building within three years of the filing of
the request for certification of the parcel as part of the district;
(2) the demolition or removal of the substandard building was performed or financed by
the authority, or was performed by a developer under a development agreement with
the authority,
the authority found by resolution before such demolition or removal occurred that the
building was structurally substandard and that the authority intended to include the
parcel in the TIF district, and
(4) the authority notifies the county auditor that the original tax capacity of the parcel
must be adjusted upon filing the request for certification of the tax capacity of the
parcel as part of a district.
(3)
In the case of (4) above, the County Auditor shall certify the original net tax capacity of the
parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed tax
capacity of the parcel using the estimated market value of the parcel for the year in which the
demolition or removal occurred, and the appropriate classification rate(s) for the current year.
At least 90 percent of the tax increment from a redevelopment district must be used to finance
the cost of correcting conditions that allow designation as a redevelopment district. These
costs include, but are not limited to, acquiring properties containing structurally substandard
buildings or improvements or hazardous substances, pollution, or contaminants, acquiring
adjacent parcels necessary to provide a site of sufficient size to permit development,
demolition and rehabilitation of structures, clearing of land, removal of hazardous substances
or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and
parking facilities for the site. The allocated administrative expenses of the authority may be
included in the qualifying costs. [M.S. Section 469.176,
Section F Duration of the TIF District and the Three Year Rule
Redevelopment districts may remain in existence 25 years from the date of receipt by the
Authority of the first tax increment. Modifications of this plan (see Section Z) shall not extend
these limitations.
SPRINGSTED Page 3
City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
The Authority reserves the right to allow the TIF District to remain in existence the maximum
duration allowed by law (projected to be through the year 2031), but anticipates that the TIF
District will be decertified prior to that time (see Section P). All tax increments from taxes
payable in the year the TIF District is decertified shall be paid to the Authority.
In addition, no tax increments shall be paid to the Authority from the TIF District after three
years from the date of certification unless within that time period:
(1) bonds have been issued in aid of the Project Area (except revenue bonds
issued pursuant to M.S. Sections 469.152 to 469.165);
(2) the Authority has acquired property within the TIF District; or
(3) the Authority has constructed public improvements within the TIF District.
Section G Property to be Included in the TIF District
The TIF District is a 50 acre area of land located within the Project Area. A map showing the
location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the
TIF District are described below:
Parcel ID Number Legal Description
17-31-22-12-0002
17 31 22 12 0005
17-31-22-21-0020
17-31-22-21-0021
THAT PRT OF N1/2 OF NE1/4 OF SEC 17
T31 R22 LYG SELY OF 1 35W; EX E 920
FT THERE OF; ALSO EX S 180 FT OF W
1210 FT OF SD N1/2 OF NE1/4 SUBJ TO
EASE OF REC.
THE N 60 FT OF S 180 FT OF E 100 FT
OF W 1210 FT OF NW1/4 OF NE1/4 OF
SEC 17 TWP 31 RGE 22, EX RD, SUBJ
TO EASE OF REC.
THAT PRT OF E1/2 OF NW1/4 OF SEC 17
TWP 31 RGE 22 DESC AS FOL: COM AT
INTER OF ELY R/W LINE OF T H NO 49 &
S LINE OF SD E1/2, TH N 24 DEG 56 MIN
E ALG SD ELY R/W LINE 1271.78 FT TO
POB, TH S 65 DEG 4 MIN E 524.62 FT
+OR- TO E LINE OF SD E1/2, TH N 0 DEG
4 MIN E ALG SD E LINE 537.94 FT +OR -
TO INTER/W FOL DESC LINE: COM AT
INTER OF C/L OF T H NO 49 & S LINE OF
SD E1/3, TH N 24 DEG 56 MIN E ALG SD
C/L 1778.6 FT, TH S 65 DEG 4 MIN E 40
FT TO ELY R/W LINE OF SD RD & POB
OF SD E1/2 & SD LINE THERE TERM, TH
N 65 DEG 4 MIN E 295 FT +OR- TO SD
ELY R/W LINE, TH S 24 DEG 56 MIN W
ALG SD ELY R/W LINE 487.92 FT +OR -
TO POB, EX PRT PLATTED AS THE
VILLAGE NO 1, EX RD, SUBJ TO EASE
OF REC
THAT PRT OF NE1/4 OF NW1/4 OF SEC
17 TWP 31 RGE 22 DESC AS FOL: COM
SPRINGSTED Page 4
City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
AT INTER OF C/L OF T H NO 8 & S LINE
OF SD NW1/4 TH N 24 DEG 56 MIN E
ALG SD C/L 1778.6 FT, TH S 65 DEG 4
MIN E 40 FT TO ELY RNV LINE OF SD RD
& POB, TH CONT S 65 DEG 4 MIN E 295
FT +OR- TO E LINE OF SD 1/4 '/4, TH N
ALG SD E LINE 187.47 FT, TH N 65 DEG
4 MIN W 220 FT TO E R/W LINE OF SD
RD, TH S 24 DEG 56 MIN W ALG SD R/W
LINE 170 FT TO POB, EX PRT PLATTED
AS THE VILLAGE NO 1, EX RD, SUBJ TO
EASE OF REC.
The area encompassed by the TIF District shall also include all street or utility right-of-ways
located upon or adjacent to the property described above, and those shown in the map
attached as Exhibit I.
Section H Property to be Acquired in the TIF District
The Authority may acquire and sell any or all of the property located within the TIF District or
reimburse the developer for acquisition of that property.
Section I Specific Development Expected to Occur Within the TIF District
The proposed development will consist of a large mixed use project. Major components
include lifecycle housing with townhomes, apartments, condos, workforce and senior housing.
Also expected to be included in the project are commercial pad sites. The project will be built
in phases beginning in 2004 and ending in 2010. Commercial, rental and owner -occupied
housing would be under construction simultaneously. Tax increment will be used to finance a
portion of the redevelopment and construction costs.
The project is expected to be fully constructed in 2010 and be 100% assessed and on the tax
rolls as of January 2, 2011 for taxes payable in 2012. The project is proposed to be completed
in phases over a 7 year period.
At the time this document was prepared there were no signed development contracts with
regards to the above described development.
Section J Findings and Need for Tax Increment Financing
In establishing the TIF District, the City makes the following findings:
(1) The TIF District qualifies as a redevelopment district;
A building condition assessment was completed by SEH in the fall of
2003 for the proposed site. The report found that parcels consisting of
100% of the area are occupied and 100% of the buildings are
structurally substandard. See the summary of the substandard
qualifications in Appendix A.
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(2) The proposed development, in the opinion of the City, would not reasonably be
expected to occur solely through private investment within the reasonably
foreseeable future, and the increased market value of the site that could
reasonably be expected to occur without the use of tax increment would be Tess
than the increase in market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments
for the maximum duration of the TIF District permitted by the TIF Plan;
The proposed development is a mixed use project consisting of commercial,
owner -occupied and rental housing in Lino Lakes. The properties in the TIF
District have been dilapidated for several years, despite previous efforts by the
Authority to encourage its development. The Authority has been trying since
1998 to find a suitable developer for the site.
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 market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum
duration of the TIF District permitted by the TIF Plan: As noted above, the site
has been blighted for many years. The area is not serviced by public water and
sewer. Without installation of the improvements needed to serve the area, the
Authority has no reason to expect that significant redevelopment would occur
without assistance similar to that provided in this plan. Several environmental
conditions exist Therefore, the Authority concludes as follows:
a. The city's estimate of the amount by which the market value of
the site will increase without the use of tax increment financing is
$0, except for a small amount attributable to appreciation in land
value.
b. If all development which is proposed to be assisted with tax
increment were to occur in the District, the total increase in
market value would be approximately $72,222,325.
c. The present value of tax increments from the District for the
maximum duration of the district permitted by the TIF Plan is
estimated to be $14,092,793. (See Exhibit V)
d. Even if some development other than the proposed development
were to occur, the Authority finds that no alternative would occur
that would produce a market value increase greater than
$58,129,532 (the amount in clause b less the amount in clause c)
without tax increment assistance.
The reasons and facts supporting this finding are that the developer has
represented to the Authority that it would not undertake the proposed
development without the assistance of tax increment financing. Private
investment will not finance these development activities because of
prohibitive costs. It is necessary to finance these development activities
through the use of tax increment financing so that other development by
private enterprise will occur within the Project Area.
A comparative analysis of estimated market values both with and without
establishment of the TIF District and the use of tax increments has been
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(3)
performed as described above and is shown in Exhibit V. This analysis
indicates that the increase in estimated market value of the proposed
development (less the indicated subtractions) exceeds the estimated
market value of the site absent the establishment of the TIF District and
the use of tax increments.
The TIF Plan conforms to the general plan for development or redevelopment of
the City as a whole; and
The reasons and facts supporting this finding are that the TIF District is
properly zoned, and the TIF Plan has been approved by the City
Planning and Zoning Board and will generally compliment and serve to
implement policies adopted in the City's comprehensive plan.
(4) The TIF Plan will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for the development of the Project Area by private
enterprise.
(5)
The reasons and facts supporting this finding are that the development
activities are necessary so that development and redevelopment by
private enterprise can occur within the Project Area.
The City elects the method of tax increment computation set forth in Minnesota
Statutes, Section 469.177, Subdivision 3(a) (see method (b) in Section P).
Section K Estimated Public Costs
The estimated public costs of the TIF District are listed below. Such costs are eligible for
reimbursement from tax increments of the TIF District.
Land/building acquisition 4,200,000
Site improvements/preparation costs 3,500,000
Installation of public utilities 2,145,000
Streets and sidewalks 2,500,000
Interest reduction payments 0
Bond principal payments 0
Bond interest payments 0
Special assessments 3,178,000
Special assessment interest 2,000,000
Administrative expenses 2,571,000
Capitalized interest 2,500,000
Road improvements outside district 3,856.000
Total 26,450.000
The Authority anticipates using a portion of tax increment to repay the City for special
assessments including interest at 7% and for public improvements outside the TIF District but
within the project area. The Authority reserves the right to administratively adjust the amount
of any of the items listed above or to incorporate additional eligible items, so long as the total
estimated public cost is not increased.
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
Section L Estimated Sources of Revenue
Tax increment revenue 25,708,000
Interest on invested funds 292,000
Bond proceeds 0
Loan proceeds 0
Real estate sales 0
Special assessments 0
Rent/lease revenue 0
Grants 450,000
Total 26.450.000
The Authority anticipates providing financial assistance to the proposed development through
the use of a pay-as-you-go technique. As tax increments are collected from the TIF District in
future years, a portion of these taxes will be distributed to the developer/owner as
reimbursement for public costs incurred (see Section K).
The Authority reserves the right to finance any or all public costs of the TIF District using pay-
as-you-go assistance, internal funding, general obligation or revenue debt, or any other
financing mechanism authorized by law. The Authority also reserves the right to use other
sources of revenue legally applicable to the Project Area to pay for such costs including, but
not limited to, special assessments, utility revenues, federal or state funds, and investment
income.
Section M Estimated Amount of Bonded Indebtedness
The Authority does not anticipate issuing tax increment bonds to finance the estimated public
costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed
$11,335,000.
Section N Original Net Tax Capacity
The County Auditor shall certify the original net tax capacity of the TIF District. This value will
be equal to the total net tax capacity of all property in the TIF District as certified by the State
Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive,
this value is based on the previous assessment year. For districts certified between July 1 and
December 31, inclusive, this value is based on the current assessment year.
The Estimated Market Value of all property within the TIF District as of January 2, 2003, for
taxes payable in 2004, is $880,600. Upon establishment of the TIF District, and subsequent
reclassification of property, it is estimated that the original net tax capacity of the TIF District
will be approximately $10,345.
Each year the County Auditor shall certify the amount that the original net tax capacity has
increased or decreased as a result of:
(1) changes in the tax-exempt status of property;
(2) reductions or enlargements of the geographic area of the TIF District;
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(3) changes due to stipulation agreements or abatements; or
(4) changes in property classification rates.
Section 0 Original Tax Capacity Rate
The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate
shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall
be for the same taxes payable year as the original net tax capacity.
In future years, the amount of tax increment generated by the TIF District will be calculated
using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax
capacity rate of the TIF District.
At the time this document was prepared, the sum of all local tax rates that apply to property in
the TIF District, for taxes levied in 2003 and payable in 2004, was not yet available. When this
total becomes available, the County Auditor shall certify this amount as the original tax
capacity rate of the TIF District. For purposes of estimating the tax increment generated by the
TIF District, the sum of the local tax rates for taxes levied in 2002 and payable in 2003, is
116.924% as shown below.
Taxing Jurisdiction
2002/2003
Local Tax Rate
City of Lino Lakes 47.603%
Anoka County 37.714%
ISD 831 24.557%
Other 7.050%
Total 116.924%
Section P Projected Retained Captured Net Tax Capacity and
Projected Tax Increment
Each year the County Auditor shall determine the current net tax capacity of all property in the
TIF District. To the extent that this total exceeds the original net tax capacity, the difference
shall be known as the captured net tax capacity of the TIF District.
For communities affected by the fiscal disparity provisions of Minnesota Statutes,
Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be
determined before the application of fiscal disparity. In subsequent years, the current net tax
capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude
the product of any fiscal disparity increase in the TIF District (since the original net tax capacity
was certified) times the appropriate fiscal disparity ratio. The method the Authority elects shall
remain the same for the life of the TIF District, except that a single change may be made at
any time from method (a) to method (b) above. The Authority elects method (b).
The County Auditor shall certify to the Authority the amount of captured net tax capacity each
year. The Authority may choose to retain any or all of this amount. It is the Authority's
intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall
be known as the retained captured net tax capacity of the TIF District.
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
Exhibit 11 gives a listing of the various information and assumptions used in preparing a number
of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax
increment generated over the anticipated life of the TIF District.
Section Q Use of Tax Increment
Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by
the TIF District and pay such amount to the State's General Fund. Such amounts will be
appropriated to the State Auditor for the cost of financial reporting and auditing of tax
increment financing information throughout the state. Exhibit III shows the projected deduction
for this purpose over the anticipated life of the TIF District.
The Authority has determined that it will use 100% of the remaining tax increment generated
by the TIF District for any of the following purposes:
(1)
pay for the estimated public costs of the TIF District (see Section K) and County
administrative costs associated with the TIF District (see Section T);
(2) pay principal and interest on tax increment bonds or other bonds issued to
finance the estimated public costs of the TIF District;
accumulate a reserve securing the payment of tax increment bonds or other
bonds issued to finance the estimated public costs of the TIF District;
(3)
(4) pay all or a portion of the county road costs as may be required by the County
Board under M.S. Section 469.175, Subdivision la; or
(5)
retum excess tax increments to the County Auditor for redistribution to the City,
County and School District.
Tax increments from property located in one county must be expended for the direct and
primary benefit of a project located within that county, unless both county boards involved
waive this requirement. Tax increments shall not be used to circumvent levy limitations
applicable to the City.
Tax increment shall not be used to finance the acquisition, construction, renovation, operation,
or maintenance of a building to be used primarily and regularly for conducting the business of
a municipality, 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,
recreational, or conference purposes. This prohibition does not apply to the construction or
renovation of a parking structure or of a privately owned facility for conference purposes.
If there exists any type of agreement or arrangement providing for the developer, or other
beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed
with tax increments, such payments shall be subject to all of the restrictions imposed on the
use of tax increments. Assistance includes sale of property at less than the cost of acquisition
or fair market value, grants, ground or other leases at less then fair market rent, interest rate
subsidies, utility service connections, roads, or other similar assistance that would otherwise be
paid for by the developer or beneficiary.
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
Section R Excess Tax Increment
In any year in which the tax increments from the TIF District exceed the amount necessary to
pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess
tax increments to:
(1) prepay any outstanding tax increment bonds;
(2) discharge the pledge of tax increments thereof;
(3) pay amounts into an escrow account dedicated to the payment of the tax
increment bonds; or
(4) retum excess tax increments to the County Auditor for redistribution to the City,
County and School District. The County Auditor must report to the
Commissioner of Education the amount of any excess tax increment
redistributed to the School District within 30 days of such redistribution.
Section S Tax Increment Pooling and the Five Year Rule
At least 75% of the tax increments from the TIF District must be expended on activities within
the district or to pay for bonds used to finance the estimated public costs of the TIF District
(see Section E for additional restrictions). No more than 25% of the tax increments may be
spent on costs outside of the TIF District but within the boundaries of the Project Area, except
to pay debt service on credit enhanced bonds. All administrative expenses are considered to
have been spent outside of the TIF District. Tax increments are considered to have been
spent within the TIF District if such amounts are:
(1) actually paid to a third party for activities performed within the TIF District within
five years after certification of the district;
(2) used to pay bonds that were issued and sold to a third party, the proceeds of
which are reasonably expected on the date of issuance to be spent within the
later of the five-year period or a reasonable temporary period or are deposited
in a reasonably required reserve or replacement fund.
(3)
used to make payments or reimbursements to a third party under binding
contracts for activities performed within the TIF District, which were entered into
within five years after certification of the district; or
(4) used to reimburse a party for payment of eligible costs (including interest)
incurred within five years from certification of the district.
Beginning with the sixth year following certification of the TIF District, at least 75% of the tax
increments must be used to pay outstanding bonds or make contractual payments obligated
within the first five years. When outstanding bonds have been defeased and sufficient money
has been set aside to pay for such contractual obligations, the TIF District must be decertified.
The Authority anticipates that tax increments will be spent outside of the TIF District (including
the allowable administrative expenses)and reserves the right to allow for maximum tax
increment pooling from the TIF District.
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
Section T Limitation on Administrative Expenses
Administrative expenses are defined as all costs of the Authority other than:
(1) amounts paid for the purchase of land;
(2) amounts paid for materials and services, including architectural and engineering
services directly connected with the physical development of the real property in
the project;
(3) relocation benefits paid to, or services provided for, persons residing or
businesses located in the project;
(4) amounts used to pay principal or interest on, fund a reserve for, or sell at a
discount bonds issued pursuant to section 469.178; or
(5) amounts used to pay other financial obligations to the extent those obligations
were used to finance costs described in clause (1) to (3).
Administrative expenses include amounts paid for services provided by bond counsel, fiscal
consultants, planning or economic development consultants, and actual costs incurred by the
County in administering the TIF District. Tax increments may be used to pay administrative
expenses of the TIF District up to the lesser of (a) 10% of the total estimated public costs
authorized by the TIF Plan or (b) 10% of the total tax increment expenditures for the project.
Section U Limitation on Property Not Subject to Improvements - Four Year Rule
If after four years from certification of the TIF District no demolition, rehabilitation, renovation,
or qualified improvement of an adjacent street has commenced on a parcel located within the
TIF District, then that parcel shall be excluded from the TIF District and the original net tax
capacity shall be adjusted accordingly. Qualified improvements of a street are limited to
construction or opening of a new street, relocation of a street, or substantial reconstruction or
rebuilding of an existing street. The Authority must submit to the County Auditor, by
February 1 of the fifth year, evidence that the required activity has taken place for each parcel
in the TIF District.
If a parcel is excluded from the TIF District and the Authority or owner of the parcel
subsequently commences any of the above activities, the Authority shall certify to the County
Auditor that such activity has commenced and the parcel shall once again be included in the
TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most
recently certified by the Commissioner of Revenue, and add such amount to the original net
tax capacity of the TIF District.
Section V Estimated Impact on Other Taxing Jurisdictions
Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected
retained captured net tax capacity of the TIF District was hypothetically available to the other
taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing
jurisdictions during the life of the TIF District, since the proposed development would not have
occurred without the establishment of the TIF District and the provision of public assistance. A
positive impact on other taxing jurisdictions will occur when the TIF District is decertified and
the development therein becomes part of the general tax base.
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
Section W Prior Planned Improvements
The Authority shall accompany its request for certification to the County Auditor (or notice of
district enlargement), with a listing of all properties within the TIF District for which building
permits have been issued during the 18 months immediately preceding approval of the TIF
Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the
net tax capacity of each improvement for which a building permit was issued.
There have been no building permits issued in the last 18 months in conjunction with any of
the properties within the TIF District.
Section X Development Agreements
If within a project containing a redevelopment district, more than 25% of the acreage of the
property to be acquired by the Authority is purchased with tax increment bonds proceeds (to
which tax increment from the property is pledged), then prior to such acquisition, the Authority
must enter into an agreement for the development of the property. Such agreement must
provide recourse for the Authority should the development not be completed.
The Authority anticipates entering into an agreement for development, but does not anticipate
acquiring any property located within the TIF District.
Section Y Assessment Agreements
The Authority may, upon entering into a development agreement, also enter into an
assessment agreement with the developer, which establishes a minimum market value of the
land and improvements for each year during the life of the TIF District.
The assessment agreement shall be presented to the County or City Assessor who shall
review the plans and specifications for the improvements to be constructed, review the market
value previously assigned to the land, and so long as the minimum market value contained in
the assessment agreement appears to be an accurate estimate, shall certify the assessment
agreement as reasonable. The assessment agreement shall be filed for record in the office of
the County Recorder of each county where the property is located. Any modification or
premature termination of this agreement must first be approved by the City, County and School
District.
The Authority anticipates entering into an assessment agreement.
Section Z Modifications of the Tax Increment Financing Plan
Any reduction or enlargement in the geographic area of the Project Area or the TIF District;
increase in the amount of bonded indebtedness to be incurred; increase in the amount of
capitalized interest; increase in that portion of the captured net tax capacity to be retained by
the Authority; increase in the total estimated public costs; or designation of additional property
to be acquired by the Authority shall be approved only after satisfying all the necessary
requirements for approval of the original TIF Plan. This paragraph does not apply if:
(1)
the only modification is elimination of parcels from the TIF District; and
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(2) the current net tax capacity of the parcels eliminated equals or exceeds the net
tax capacity of those parcels in the TIF District's original net tax capacity, or the
Authority agrees that the TIF District's original net tax capacity will be reduced
by no more than the current net tax capacity of the parcels eliminated.
The Authority must notify the County Auditor of any modification that reduces or enlarges the
geographic area of the TIF District. The geographic area of the TIF District may be reduced
but not enlarged after five years following the date of certification.
Section AA Administration of the Tax Increment Financing Plan
Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota
Department of Revenue. The Authority shall also request that the County Auditor certify the
original net tax capacity and net tax capacity rate of the TIF District. To assist the County
Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution
establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned
improvements. The Authority shall also send the County Assessor any assessment agreement
establishing the minimum market value of land and improvements in the TIF District, and shall
request that the County Assessor review and certify this assessment agreement as
reasonable.
The County shall distribute to the Authority the amount of tax increment as it becomes
available. The amount of tax increment in any year represents the applicable property taxes
generated by the retained captured net tax capacity of the TIF District. The amount of tax
increment may change due to development anticipated by the TIF Plan, other development,
inflation of property values, or changes in property classification rates or formulas. In
administering and implementing the TIF Plan, the following actions should occur on an annual
basis:
(1) prior to July 1, the Authority shall notify the County Assessor of any new
development that has occurred in the TIF District during the past year to insure
that the new value will be recorded in a timely manner.
(2) if the County Auditor receives the request for certification of a new TIF District,
or for modification of an existing TIF District, before July 1, the request shall be
recognized in determining local tax rates for the current and subsequent levy
years. Requests received on or after July 1 shall be used to determine local tax
rates in subsequent years.
(3)
each year the County Auditor shall certify the amount of the original net tax
capacity of the TIF District. The amount certified shall reflect any changes that
occur as a result of the following:
(a) the value of property that changes from tax-exempt to taxable shall be
added to the original net tax capacity of the TIF District. The reverse
shall also apply;
(b) the original net tax capacity may be modified by any approved
enlargement or reduction of the TIF District;
(c)
if laws governing the classification of real property cause changes to the
percentage of estimated market value to be applied for property tax
purposes, then the resulting increase or decrease in net tax capacity
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
shall be applied proportionately to the original net tax capacity and the
retained captured net tax capacity of the TIF District.
The County Auditor shall notify the Authority of all changes made to the original net tax
capacity of the TIF District.
Section AB Financial Reporting and Disclosure Requirements
The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility
for financial and compliance auditing of the Authority's use of tax increment financing. On or
before August 1 of each year, the Authority must annually submit to the State Auditor, County
Auditor and to the governing body of the municipality a report which shall:
(1) provide full disclosure of the sources and uses of public funds in the TIF District;
(2) pen -nit comparison and reconciliation of the accounts and financial reports;
(3) permit auditing of the funds expended on behalf of the TIF District; and
(4) be consistent with generally accepted accounting principles.
The report shall include, among other items, the following information:
(1) the original net tax capacity of the district and any subdistrict under 469.177,
subdivision 1;
(2) the net tax capacity for the reporting period of the district and any subdistrict;
(3) the captured net tax capacity of the district;
(4) any fiscal disparity deduction from the captured net tax capacity under section
469.177, subdivision 3;
(5) the captured net tax capacity retained for tax increment financing under
469.177, subdivision 2, paragraph (a), clause (1);
(6) any captured net tax capacity distributed among affected taxing districts under
469.177, subdivision 2, paragraph (a), clause (2);
(7) the type of district;
(8) the date the municipality approved the tax increment financing plan and the
date of approval of any modification of the tax increment financing plan, the
approval of which requires notice, discussion, a public hearing, and findings
under subdivision 4, paragraph (a);
(9) the date the authority first requested certification of the original net tax capacity
of the district and the date of request for certification regarding any parcel
added to the district;
(10) the date the county auditor first certified the original net tax capacity of the
district and the date of certification of the original net tax capacity of any parcel
added to the district;
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(11) the month and year in which the authority has received or anticipates it will
receive the first increment from the district;
(12) the date the district must be decertified;
(13) for the reporting period and prior years of the district, the actual amount
received from, at least, the following categories:
(i)
tax increments paid by the captured net tax capacity retained for tax
increment financing under section 469.177, subdivision 2, paragraph (a),
clause (1), but excluding any excess taxes;
(ii) tax increments that are interest or other investment earnings on or from
tax increments;
(iii) tax increments that are proceeds from the sale or lease of property,
tangible or intangible, purchased by the authority with tax increments;
(iv) tax increments that are repayments of loans or other advances made by
the authority with tax increments;
(v) bond or loan proceeds;
(vi) special assessments;
(vii) grants; and
(viii) transfers from funds not exclusively associated with the district;
(14) for the reporting period and for the prior years of the district, the amount
budgeted under the tax increment financing plan, and the actual amount
expended for, at least, the following categories:
(i) acquisition of land and buildings through condemnation or purchase;
(ii) site improvements or preparation costs;
(iii) installation of public utilities, parking facilities, streets, roads, sidewalks,
or other similar public improvements;
(iv) administrative costs, including the allocated cost of the Authority; and
(v) public park facilities, facilities for social, recreational, or conference
purposes, or other similar public improvements; and
(vi) transfers to funds not exclusively associated with the district;
(15) for properties sold to developers, the total- cost of the property to the Authority
and the price paid by the developer;
(16) the amount of any payments and the value of in -kind benefits, such as physical
improvements and the use of building space, that are paid or financed with tax
increments and are provided to another governmental unit other than the
municipality during the reporting period;
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(17) the amount of any payments for activities and improvements located outside of
the district that are paid for or financed with tax increments;
(18) the amount of payments of principal and interest that are made during the
reporting period on any non-defeased:
(i) general obligation tax increment financing bonds;
(ii) other tax increment financing bonds; and
(iii) notes and pay-as-you-go contracts;
(19) the principal amount, at the end of the reporting period, of any non-defeased:
(i) general obligation tax increment financing bonds;
(ii) other tax increment financing bonds; and
(iii) notes and pay-as-you-go contracts;
(20) the amount of principal and interest payments that are due for the current
calendar year on any non-defeased:
(i) general obligation tax increment financing bonds;
(ii) other tax increment financing bonds; and
(iii) notes and pay-as-you-go contracts;
(21) if the fiscal disparities contribution under chapter 276A or 473F for the district is
computed under section 469.177, subdivision 3, paragraph (a). the amount of
increased property taxes imposed on other properties in the municipality that
approved the tax increment financing plan as a result of the fiscal disparities
contribution;
(22) whether the tax increment financing plan or other governing document permits
increment revenues to be expended;
(i) to pay bonds, the proceeds of which were or may be expended on
activities outside of the district;
(ii) for deposit into a common bond fund from which money may be
expended on activities located outside of the district; or
(iii) to otherwise finance activities located outside of the tax increment
financing district;
(23) the estimate contained in the tax increment financing plan of the cost of the
project, including administrative expenses to be paid with tax increment; and
(24) any additional information the state auditor may require.
The Authority must also annually publish in a newspaper of general circulation in the City an
annual statement for each tax increment financing district showing:
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City of Lino Lakes and Lino Lakes Economic Development Authority, Minnesota
(1) the original net tax capacity of the district and any subdistrict under 469.177,
subdivision 1;
(2) the net tax capacity for the reporting period of the district and any subdistrict;
(3) the captured net tax capacity of the district;
(4) the month and year in which the authority has received or anticipates it will
receive the first increment from the district;
(5) the date the district must be decertified;
(6) the amount of principal and interest payments that are due for the current
calendar year on any non-defeased obligations;
(7)
if the fiscal disparities contribution under chapter 276A or 473F for the district is
computed under section 469.177, subdivision 3, paragraph (a). the amount of
increased property taxes imposed on other properties in the municipality that
approved the tax increment financing plan as a result of the fiscal disparities
contribution;
(8) the amounts of tax increment received and expended in the reporting period;
(9) and any additional information the authority deems necessary.
The annual statement must inform readers that additional information regarding each district
may be obtained from the authority, and must explain how the additional information may be
requested. The Authority must publish the annual statement for a year no later than August 15
of the next year. The authority must identify the newspaper of general circulation in the
municipality to which the annual statement has been or will be submitted for publication and
provide a copy of the annual statement to the county board, county auditor, the school board,
the state auditor, and the governing body of the municipality on or before August 1 of the year
in which the statement must be published.
The reporting and disclosure requirements outlined in this section shall begin with the year the
district was certified, and shall end in the a year in which both the district has been decertified
and all tax increments have been spent or returned to the county for redistribution. Failure to
meet these requirements, as determined by the State Auditors Office, may result in suspension
of distribution of tax increment.
SPRINGSTED Page 18
Exhibit t
Map of Tax Increment Financing (Redevelopment) District No. 1-11
Proposed boundaries of Tax Increment
Financing (Redevelopment) District No. 1-11
SPRI NGSTED
Page 19
L.,
Exhibit I
Map of Development District No. 1
Development District No. 1
City of Lino Lakes
Anoka County, Minnesota
SPRI NGSTED
Page 20
Exhibit 11
Assumptions Report
City of Lino Lakes, Minnesota
Tax Increment Financing (Redevelopment) District No. 1-11
The Village Project
Scenario B - Fiscal disparities contribution from within district
Type of Tax Increment Financing District
Maximum Duration of TIF District
Redevelopment
25 years from 1st increment
Projected Certification Request Date 06/01/04
Decertification Date 12/31/31 (26 Years of Increment)
Base Estimated Market Value
Original Net Tax Capacity
Base Estimated Market Value
Increase in Estimated Market Value
Total Estimated Market Value
Total Net Tax Capacity
2004/2005
$880,600
0
$880,600
$10,345
2003/2004
$880,600
$10,345
Assessment/Collection Year
2005/2006 2006/2007 2007/2008
$880,600 $880,600 $880,600
10,614,465 21,228,930 35,673,395
$11,495,065 $22,109,530 $36,553,995
$141,072 $282,144 $499,066
City of Lino Lakes
Anoka County
ISD #831
Other
47.603%
37.714%
24.557%
7.050% Rice Creek Watershed
Local Tax Capacity Rate
Fiscal Disparities Contribution From TIF District
Administrative Retainage Percent (maximum = 10%)
Pooling Percent
116.924% 2002/2003
35.6909%
10.00%
15.00%
Bonds
Bonds Dated
Bond Issue @ 5.92% (NIC)
Eligible Project Costs
06/01/04
$11,335,000
$7,959,040
Note (Pay -As -You -Go)
Note Dated 06/01/04
Note Rate 8.00%
Note Amount $7,066,500
Present Value Date & Rate 06/01/04 5.00%
Notes
SPRINGSTED Page 21
Projected Tax Increment Report
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SPRINGSTED
Estimated Impact on Other Taxing Jurisdictions Report
With Project and TIF District
Project or TIF District
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SPRI NGSTED
Exhibit V
Market Value Analysis Report
City of Lino Lakes, Minnesota
Tax Increment Financing (Redevelopment) District No. 1-11
The Village Project
Scenario B - Fiscal disparities contribution from within district
Assumptions
Present Value Date
P.V. Rate - Gross T.I.
06/01/04
5.00%
Increase in EMV With TIF District
Less: P.V of Gross Tax Increment
Subtotal
Less: Increase in EMV Without TIF
$72,222,325
12,468,770
$59,753,555
0
Difference $59,753,555
Annual Present
Gross Tax Value @
Year Increment 5.00%
1 2006 152,851 136,404
2 2007 317,798 270,097
3 2008 539,778 436,913
4 2009 762,323 587,664
5 2010 984,868 723,068
6 2011 1,042,465 728,909
7 2012 1,100,063 732,555
8 2013 1,100,063 697,671
9 2014 1,100,063 664,449
10 2015 1,100,063 632,808
11 2016 1,100, 063 602,675
12 2017 1,100,063 573,976
13 2018 1,100,063 546,644
14 2019 1,100,063 520,613
15 2020 1,100,063 495,822
16 2021 1,100,063 472,211
17 2022 1,100,063 449,725
18 2023 1,100,063 428,310
19 2024 1,100, 063 407,914
20 2025 1,100,063 388,489
21 2026 1,100, 063 369,990
22 2027 1,100,063 352,371
23 2028 1,100,063 335,592
24 2029 1,100,063 319,611
25 2030 1,100,063 304,392
26 2031 1,100,063 289,897
$25,801,343 $12,468,770
SPRI NGSTED
Page 24