HomeMy WebLinkAbout10-10-2022 EDA PacketLINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
Monday, October 10, 2022
Immediately Following Regular City Council Meeting
City Council Chambers
1. Call to Order and Roll Call
2. Consideration of Minutes of June 13, 2022
3. Action Items
A. Consider Resolution No. 22-02, Approving Tax Increment Financing Plan for
District 1-14.
4. Adjourn
EDA MINUTES
DRAFT
1
DATE : June 13, 2022 1
TIME STARTED : 7:10 p.m. 2
TIME ENDED : 7:30 p.m. 3
MEMBERS PRESENT : EDA Members Rafferty, Stoesz, 4
Cavegn, Ruhland 5
MEMBERS ABSENT : EDA Member Lyden 6
OTHERS PRESENT : Community Development Director 7
Michael Grochala; City Clerk Julie 8
Bartell 9
10
The meeting was called to order at 7:10 p.m. by EDA President Ruhland 11
12
CONSIDERATION OF THE MINUTES OF MAY 23, 2022 13
14
Economic Development Authority (EDA) Member Rafferty moved to approve the 15
minutes of May 2 3, 2022 as presented. EDA Member Cavegn seconded the motion. 16
Motion carried on a voice vote. 17
18
ACTION ITEM 19
20
A) Public Hearing. Consideration of Resolution No. 22-01 Approving Purchase 21
and Development Agreement with Silver Creek Equity, LLC. , Lots 1-3, Outlot B & 22
C, The Village No. 4 23
24
Community Development Director Grochala reviewed the written staff report: 25
- History of Legacy at Woods Edge land, including land sales; 26
- Land use Plan for Legacy at Woods Edge; 27
- Silver Creek Equity is proposing purchase (site noted on map); 28
- Proposing to construction housing, retail and restaurants, generally consistent with 29
the land use plan; 30
- Purchase price noted; earnest payments required; 31
- Closing date proposed; 32
- Development requirements reviewed; 33
- Signage; 34
- Project is generally consistent but approval process ahead. 35
36
EDA Member Rafferty asked about who the developers plan to use for architecture – 37
Tushie Montgomery was noted. 38
39
EDA President Ruhland asked staff about the terms of the earnest money refund and Mr. 40
Grochala noted the time period (120 days). EDA President Ruhland noted that the 41
commercial element is required concurrent with the housing and he wonders how that 42
will be enforced. Mr. Grochala suggested that the building permit process will provide 43
some oversight. Mr. Grochala noted that the restaurant element takes less time to build 44
EDA MINUTES
DRAFT
2
than the residential and so that is also a consideration. 1
2
EDA Member Cavegn asked about the security on the commercial elements and the 3
developers (Peter Josh and Jamison Kahort) responded with an explanation of their plans. 4
5
EDA Member Stoesz asked about maintaining the community green parking and Mr. 6
Grochala explained plans including a goal to have people using the businesses to also use 7
the community green. 8
9
EDA Member Rafferty noted some high quality developments and his desire to see that 10
for the City. The developers said they are open to discussing what the council envisions; 11
their partners have developed a variety of projects. The developers offered to walk the 12
council through a project already completed. 13
14
EDA President Ruhland opened the public hearing. 15
16
There being no one present wishing to speak, the public hearing was closed at 7:29 p.m. 17
18
EDA Member Cavegn moved to approve Resolution No. 22-01 as presented. EDA 19
Rafferty Member seconded the motion. Motion carried on a voice vote. EDA Member 20
Lyden was absent. 21
22
The meeting was adjourned at 7:30 p.m. 23
24
25
26
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
AGENDA ITEM 3A
STAFF ORIGINATOR: Michael Grochala, Community Development Director
MEETING DATE: October 10, 2022
TOPIC: Consider Resolution No. 22-02, Approving Tax Increment
Financing Plan for District No. 1-14
VOTE REQUIRED: 3/5
BACKGROUND
Ryan Companies, US, Inc., recently entered into a purchase agreement to acquire 33 acres north
of Clearwater Creek, west of I-35E. Ryan is proposing construction of 3 buildings totaling
approximately 451,000 square feet of manufacturing, office and warehouse space with an
estimated market value of $31,000,000. The project, as proposed, addresses a number of City
goals related to this area and will significantly reshape the SW quadrant of the Main Street and
35E intersection. The public benefits include:
• Development of underutilized properties.
• Expansion of City tax base.
• Creation of new manufacturing, office and professional jobs.
• Extension of public street improvements to serve the business park and surrounding uses.
The developer has submitted an application for public assistance to offset infrastructure, and site
development and construction costs related to the proposed buildings. The proposed public
assistance would be provided in the form of Tax Increment Financing (TIF).
The establishment of a Tax Increment Financing (TIF) District requires the preparation of a TIF
plan and review by both the school district and county. To date, no comments have been
received from Centennial School District or Anoka County.
A public hearing must be held prior to City Council consideration to establish a district.
Tax Increment Financing (TIF) Plan
The TIF plan provides the framework for the use of tax increment for development purposes.
The plan includes the statutory authorization, purpose and objectives of the district. The
City/EDA are proposing to establish an Economic Development district. The maximum duration
of an Economic Development district is 9 years – 8 years from the date of receipt of the first
increment.
The primarily purpose of the district is to aid in the construction of the proposed industrial
buildings and public infrastructure. Tax increment is intended to be used to offset costs related
to site improvements, building and infrastructure costs.
The plan includes the City’s findings that, in our opinion, due to extraordinary costs associated
with the project including soil corrections, utility relocation and infrastructure extensions and
building preparations, the project would not be reasonably expected to occur solely through
private investment.
The estimated public costs eligible for reimbursement from tax increment total $3,444,854. Tax
increment revenues generated from the development are expected to equal this amount.
Approval of the plan and determination of eligible costs does not obligate the City/EDA to any
specific district duration or amount of assistance.
The total amount of assistance proposed is $2,900,000.00. However approval of any specific
assistance package will be part of a separate contract for development.
Representatives from BakerTilly, the City’s financial consultant will be present at the meeting to
address any City Council questions.
RECOMMENDATION
The proposed project will increase the City’s tax base, develop underutilized property, provide
needed infrastructure improvements.
Staff recommends approval of Resolution No. 22-02.
ATTACHMENTS
1. Resolution No. 22-02
2. TIF Plan for District 1-14
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 22-02
RESOLUTION APPROVING TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING (ECONOMIC
DEVELOPMENT) DISTRICT NO. 1-14
WHEREAS, the City of Lino Lakes, Minnesota (the “City”) and the Lino Lakes Economic
Development Authority (the “Authority”) have established, and the Authority administers, Development
District No. 1 (the “Development District”) located within the City and have caused to be created a
Development Plan (the “Development Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.090
through 469.1082, as amended; and
WHEREAS, within the Development District the City and the Authority have created certain tax
increment financing districts pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as
amended (the “TIF Act”); and
WHEREAS, the City and the Authority have determined to approve a tax increment financing plan
(the “TIF Plan”) relating to the creation of a new tax increment financing district within the Development
District designated as the Tax Increment Financing (Economic Development) District No. 1-14 (the “TIF
District”), all as described in a plan document presented to the Board of Commissioners of the Authority
(the “Board”) on the date hereof; and
WHEREAS, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed TIF Plan and
the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the
Board of Education of Independent School District No. 12 and to the Manager of Property Records and
Taxation, as the County Auditor, of Anoka County, Minnesota (the “County Auditor”) at least thirty (30)
days prior to the date hereof; and
WHEREAS, on the date hereof, the City Council of the City conducted a duly noticed public
hearing relating to the TIF Plan and the establishment of the TIF District, at which the views of all interested
parties were heard at the public hearing; and
WHEREAS, following the public hearing, the City Council approved the TIF Plan; and
WHEREAS, the Board has reviewed the contents of the TIF Plan, as approved by the City Council;
and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Lino Lakes
Economic Development Authority that:
1. The creation of the TIF District and the TIF Plan are hereby approved.
2. The Board hereby makes all the findings set forth in the TIF Plan, which document is
incorporated herein by reference.
3. Authority staff and consultants are authorized to take all actions necessary to implement the
TIF Plan.
2
Adopted by the Board of Commissioners of the Lino Lakes Economic Development Authority
this 10th day of October, 2022.
President
ATTEST:
Executive Director
LN140-128 (JAE)
826712v1
Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly Virchow
Krause, LLP, an accounting firm. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker
Tilly International Ltd., the members of which are separate and independent legal entities.
Tax Increment Financing Plan
for
Tax Increment Financing (Economic
Development) District No. 1-14
within
Development District No. 1
(Clearwater Creek Industrial Development Project)
City of Lino Lakes, Minnesota
Lino Lakes Economic Development Authority
Prepared by
Baker Tilly Municipal Advisors, LLC
Draft Dated: October 3, 2022
Anticipated Public Hearing: October 10, 2022
Anticipated Approval by City Council: October 10, 2022
TABLE OF CONTENTS
Section Page(s)
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 an
Economic Development District ............................................................................................... 2
F. Duration of the TIF District ......................................................................................................... 3
G. Property to be Included in the TIF District .................................................................................. 4
H. Property to be Acquired in the TIF District ................................................................................. 4
I. Specific Development Expected to Occur Within the TIF District .............................................. 4
J. Findings and Need for Tax Increment Financing ....................................................................... 5
K. Estimated Public Costs .............................................................................................................. 6
L. Estimated Sources of Revenue .................................................................................................. 7
M. Estimated Amount of Bonded Indebtedness .............................................................................. 7
N. Original Net Tax Capacity .......................................................................................................... 8
O. Original Tax Capacity Rate ........................................................................................................ 8
P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ......................... 9
Q. Use of Tax Increment ................................................................................................................. 9
R. Excess Tax Increment ................................................................................................................ 10
S. Tax Increment Pooling and the Five-Year Rule ......................................................................... 10
T. Limitation on Administrative Expenses ...................................................................................... 11
U. Limitation on Property Not Subject to Improvements - Four Year Rule ..................................... 11
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 ................................................................. 14
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
Baker Tilly Municipal Advisors, LLC Page 1
ESTABLISHMENT OF THE TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1-14
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 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. 12, Minnesota.
"State" means the State of Minnesota.
"TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive.
"TIF District" means Tax Increment Financing (Economic Development) District No. 1-14.
"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.
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
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 2
School District, thereby enabling them to 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. 1-14:
1. redevelop blighted areas as identified
2. provide employment 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. 1-14 is to aid in the construction of 3 large
manufacturing/warehousing/distribution facilities that will collectively be approximately 451,000 total
square feet. The Authority intends to use increment generated by the new development to assist with
financing a portion of the extraordinary site improvements and soil correction costs and offsite
improvements that include streets, public utilities, and public improvements to gain access to the site and
maximize building size on the development parcels.
Section E Designation of Tax Increment Financing District as an
Economic Development District
Economic development districts are a type of tax increment financing district which consist of any project,
or portions of a project, which the Authority finds to be in the public interest because:
(1) it will discourage commerce, industry, or manufacturing from moving their
operations to another state or municipality;
(2) it will result in increased employment in the state; or
(3) it will result in preservation and enhancement of the tax base of the state; or
(4) it satisfies the requirements of a workforce housing project as defined
.
The TIF District qualifies as an economic development district in that the proposed development
described in this TIF Plan (see Section I) meets the criteria listed above in (2) and (3). Without
establishment of the TIF District, the proposed development would not occur within the City. The
proposed development will also result in increased employment and enhancement of the tax base in both
the City and the State.
Tax increments from an economic development district must be used to provide improvements, loans,
subsidies, grants, interest rate subsidies, or other assistance in which at least 85% of the square footage
of the facilities to be constructed are used for any of the following purposes:
(1) manufacturing, production, or processing of tangible personal property;
(2) warehousing, storage and distribution of tangible personal property, excluding retail
sales;
(3) research and development related to the activities listed in (1) or (2) above;
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 3
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities (see M.S. Section 469.174, Subd. 22);
(6) space necessary for and related to the activities listed in (1) through (5) above;
(7) a workforce housing project that satisfies the requirements under Minnesota Statutes,
Section 469.176, subdivision 4c, paragraph (d).
Tax increments from the TIF District will be used to provide financial assistance to the proposed
development (see Section I), in which over 85% of the square footage of the facilities to be constructed
will be used for manufacturing, production, or processing of tangible personal property and warehousing,
storage and distribution of tangible personal property, excluding retail sales as listed in (1) and (2) above.
In addition, the parcels to be included within the district have qualified for inclusion under the provisions of
chapter 473H in the previous five calendar years before the filing of the request for certification only and
therefore the project must meet the following qualifications:
(1) a district in which 85 percent or more of the planned buildings and facilities (determined on the
basis of square footage) are a qualified manufacturing facility or a qualified distribution facility or a
combination of both; or
(2) a housing district.
A distribution facility means buildings and other improvements to real property that are used to conduct
activities in at least each of the following categories:
(i) to store or warehouse tangible personal property;
(ii) to take orders for shipment, mailing, or delivery;
(iii) to prepare personal property for shipment, mailing, or delivery; and
(iv) to ship, mail, or deliver property.
A manufacturing facility includes space used for manufacturing or producing tangible personal property,
including processing resulting in the change in condition of the property, and space necessary for and
related to the manufacturing activities.
To be a qualified facility, the owner or operator of a manufacturing or distribution facility must agree to pay
and pay 90 percent or more of the employees of the facility at a rate equal to or greater than 160 percent
of the federal minimum wage for individuals over the age of 20.
The proposed project will be a qualified manufacturing and distribution facility.
Section F Duration of the TIF District
Economic development districts may remain in existence 8 years from the date of receipt by the Authority
of the first tax increment. The Authority anticipates that the TIF District will remain in existence the
maximum duration allowed by law (projected to be through the year 2033, due to anticipated receipt of
first increment in 2025). Modifications of this plan (see Section AA) shall not extend these limitations.
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 4
Section G Property to be Included in the TIF District
The TIF District is an approximate 37-acre area of land comprising of the parcels listed below that are
located within the Project Area. A map showing the boundaries of the TIF District is shown in Exhibit I.
Parcel ID Number Legal Description
24-31-22-31-0004 Outlot A, Clearwater Creek Business Park
24-31-22-24-0009 Outlot A, Clearwater Creek Business Center
24-31-22-24-0008 Lot 2, Block 2, Clearwater Creek Business Center
24-31-22-24-0002 That part of the Southeast Quarter of the Northwest Quarter (SE ¼ of NW ¼)
of Section 24, Township 31, Range 22, described as follows, to-wit:
Commencing at the Southwest corner of said Southeast Quarter of Northwest
Quarter (SE ¼ of NW ¼) of Section 24, thence running East along the South
line of said Southeast Quarter of Northwest Quarter (SE ¼ of NW ¼) a
distance of 275 feet; thence running North parallel with the West line of said
Southeast Quarter of Northwest Quarter (SE ¼ of NW ¼) a distance of 375
feet; thence West parallel with the South line of said Southeast Quarter of
Northwest Quarter (SW ¼ of NW ¼) a distance of 275 feet to the West line of
said Southeast Quarter of Northwest Quarter (SE ¼ of NW ¼); thence
running South along the West line of said Southeast Quarter of Northwest
Quarter (SE ¼ of NW ¼) a distance of 375 feet to the point of beginning;
Anoka County, Minnesota.
* The parcels listed above are anticipated to be replatted and will be site upon which the new
industrial building development with 3 separate buildings will be built. 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.
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. It will not be
acquiring any property at this time and will not be selling the property to facilitate development.
Section I Specific Development Expected to Occur Within the TIF District
The proposed project is anticipated to include the construction of approximately 451,000 square feet of
light industrial manufacturing, warehousing and distribution space to be constructed in 2 phases within 3
buildings – each building will be approximately 189,000, 147,000 and 115,000, respectively. Tax
increment is a financing tool the Authority is planning to use for financing of a portion of the eligible costs
associated with construction of the project to offset extraordinary costs. The square footage of the
completed buildings will comply with the requirements of an economic development district with at least
85% being used for a qualifying purpose (industrial warehousing, distribution, manufacturing project).
It is anticipated that the Authority will use the tax increment to finance a portion of the site development,
soils correction, infrastructure, public improvement and other related costs that are necessary for this
project to proceed. In addition, the city may use tax increment for related administrative expenses, and
any other eligible expenditures associated with development of the site that may include additional
necessary public improvements.
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 5
Construction of the project is expected to commence in 2023 and continue in 2024 and be 100%
assessed and on the tax rolls as of January 2, 2025, for taxes payable in 2026.
At the time this document was prepared there were no signed construction 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 an economic development district.
See Section E of this document for the reasons and facts supporting this finding.
(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 financing 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 tax increments for the maximum duration of the district permitted by the TIF
Plan.
Factual basis:
Proposed development not expected to occur:
The project includes the development of new large industrial buildings comprising of
approximately 451,000 square feet in an undeveloped area of the City. The proposed developer
of the site has submitted information to the city demonstrating that the development of this site is
not financially feasible without the assistance provided in this TIF Plan.
The City has determined that the proposed development would not occur but for the financial
assistance provided in this TIF Plan because of the high cost of construction at the site due to the
need for significant site development, soils correction and public improvement infrastructure costs
necessary for development to occur. Specifically, soils correction/lime stabilization, aggregate
piers, site preparation and site fill, public utility relocation and offsite road extension to allow
maximum development on the site and area. Due to the high costs of investment for the
proposed project, including site improvements, public improvements, soil correction, and
infrastructure costs that would be incurred by the developer in conjunction with development of
the project, the developer has stated that the project as proposed would not occur without the
financial assistance provided by the City, as it would not be economically feasible without
financial assistance. The City finds the use of tax increment necessary to finance a portion of the
site improvement, public infrastructure, soil correction and infrastructure costs to facilitate
development of the project and developer investment. The City anticipates providing financial
assistance on a pay-as-you-go basis.
Therefore, the City has determined that the proposed development would not occur but for the
financial assistance provided in this TIF Plan because of the increased costs related to development
within the TIF District and construction of the project. The cost of construction of the project and
availability of revenues to support repayment of debt has created a financial gap that requires a level
of public assistance.
No higher market value expected:
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 6
The project to be constructed within TIF District No. 1-14 requires significant investment to be
financially feasible. To commence construction of the new industrial project, assistance with
financing a portion of those costs will be necessary. The financial assistance provided under this TIF
Plan will help offset the costs of the improvements. Given the nature of this project, there is no
reasonable expectation of any development occurring that would generate as much market value
increase as is estimated to be generated by the proposed development by the new business.
Therefore, the City has concluded that substantial development at this particular site--and hence
any significant increase in market value--is not reasonably expected to occur unless the City
provides tax increment assistance as described in this Tax Increment Plan.
To summarize the basis for the City’s findings regarding alternative market value, in accordance with
Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations:
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 (for the reasons described above), except
some unknown amount of appreciation.
b. If the proposed development to be assisted with tax increment occurs in the District,
the total increase in market value would be approximately $35,960,717, including the value
of the building (See Exhibit II).
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 $2,692,001 (See Exhibit V).
d. Even if some development other than the proposed development were to occur, the
Council finds that no alternative would occur that would produce a market value increase
greater than $33,268,716 (the amount in clause b less the amount in clause c) without tax
increment assistance.
(3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the
City as a whole, for development of the Project Area by private enterprise.
Factual basis: The proposed development is the construction of new large buildings that will be
a mix of warehousing, manufacturing and distribution in the Project Area that is expected to retain
existing jobs as well as create new jobs in the City, plus create new tax base for the City and the
State. The development meets the City’s economic development goals in terms of tax base
expansion, job retention, and wage levels.
(4) The TIF Plan conforms to general plans for development of the City as a whole.
Factual basis: The City Council has determined that the development proposed in the TIF Plan
conforms to the City comprehensive plan.
(5) The City is electing the method of tax increment computation set forth in Minnesota
Statutes, Section 469.177, Subdivision 3(b) (see Section P).
Section K Estimated Public Costs
The estimated public costs of the TIF District are listed in the table on the following page. Such costs are
eligible for reimbursement from tax increments of the TIF District.
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 7
Estimated Public Costs Estimated Amount
Land/Building acquisition $0
Site Improvements/Preparation costs $2,672,614
Utilities $0
Other public improvements $600,000
Construction of affordable housing $0
Administrative expenses $172,240
Total Estimated Public Costs $3,444,854
Interest expenses $0
Total Costs $3,444,854
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 costs ($3,444,854) do not
increase. The Authority also reserves the right to fund any of the identified costs with any other legally
available revenues, such as grants and/or loans, but anticipates that such costs will be primarily financed
with tax increments.
Section L Estimated Sources of Revenue
Estimated Sources of Revenue Estimated Amount
Tax Increment revenue $3,444,854
Interest on invested funds
Total $3,444,854
The Authority anticipates providing financial assistance to the proposed development through pay-as-you-
go financing in which the City will provide funding to the development. As revenues are collected from
the TIF District in future years, a portion will be retained by the City and the remaining funds will be
provided as reimbursement for certain identified costs as necessary within the TIF District to assist with
financing the public costs incurred (see Section K).
The City 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. The projected tax increment report is
included as Exhibit III.
Section M Estimated Amount of Bonded Indebtedness
The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax
increment from the TIF District is $3,444,854. The Authority currently plans to finance the public costs
through pay-as-you-go financing. The Authority reserves the right to issue an interfund loan or issue
bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum
permitted under Section 469.178, subd. 7 of the TIF Act.
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 8
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, 2022, for taxes payable
in 2023, is $699,300. Upon establishment of the TIF District, it is estimated that the original net tax
capacity of the TIF District will increase as a result of the property reclassifying as commercial-industrial.
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;
(3) changes due to stipulation agreements or abatements; or
(4) changes in property classification rates.
Section O 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.
It is anticipated the request for certification of the District will occur after June 30, 2023 and the local tax
rates for taxes levied in 2023 and payable in 2024 will apply. The payable 2024 rates are not available at
the time of drafting of the TIF Plan. For purposes of estimating the tax increment generated by the TIF
District, the sum of the local tax rates for taxes levied in 2021 and payable in 2022 of 105.106% have
been used and are shown below:
2021/2022
Taxing Jurisdiction Local Tax Rate
City of Lino Lakes 40.154%
Anoka County 29.605%
ISD 12 31.074%
Other 4.273%
Total 105.106%
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 9
Section P Projected Retained Captured Net Tax Capacity and
Projected Tax Increment
The Authority anticipates that the building construction will be completed by December 31, 2024, creating
a total tax capacity for TIF District No. 1-14 of $609,740 as of January 2, 2025. The captured tax capacity
as of that date is estimated to be $344,365 and the first full year of tax increment is estimated to be
$361,948 payable in 2026. A complete schedule of estimated tax increment from the TIF District is
shown in Exhibit III.
The estimates shown in this TIF plan assume that commercial class rates remain at 1.5% of the
estimated market value up to $150,000 and 2.0% of the estimated market value over $150,000 and
assume 2% annual increases in market values.
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), or M.S.
Section 469.177, Subdivision 3(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.
Exhibit II 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;
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 10
(3) accumulate a reserve securing the payment of tax increment bonds or other bonds
issued to finance the estimated public costs of the TIF District;
(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 1a; or
(5) return 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.
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) return 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 80% 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 20% 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:
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 11
(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 80% 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 a portion of the tax increments may be spent outside of the TIF District
(including allowable administrative expenses); and the Authority reserves the right to allow for tax
increment pooling from the TIF District in the future.
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 tax increment expenditures authorized by the TIF Plan or (b) 10% of the total
tax increments received by the TIF District.
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 of property
or other site preparation, including 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
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 12
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.
The fiscal and economic implications of the proposed tax increment financing district, as pursuant to
Minnesota Statutes, Section 469.175, Subdivision 2, are listed below.
1. The total amount of tax increment that will be generated over the life of the district is estimated to
be $3,457,300.
2. To the extent the facility in the proposed TIF District generates any public cost impacts on city-
provided services such as police and fire protection, public infrastructure, and borrowing costs
attributable to the district, such costs will be levied upon the taxable net tax capacity of the City,
excluding that portion captured by the District. The City does not anticipate issuing tax increment
revenue bonds in conjunction with this project but reserves the right to issue bonds as necessary
to facilitate development.
3. The amount of tax increments over the life of the district that would be attributable to school
district levies, assuming the school district’s share of the total local tax rate for all taxing
jurisdictions remained the same, is estimated to be $1,022,131.
4. The amount of tax increments over the life of the district that would be attributable to county
levies, assuming the county’s share of the total local tax rate for all taxing jurisdictions remained
the same is estimated to be $973,811.
5. No additional information has been requested by the county or school district that would enable it
to determine additional costs that will accrue to it due to the development proposed for the
district.
Section W Prior Planned Improvements
The City 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.
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 13
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 an economic development district, more than 10% 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 with the Developer relating to the project.
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 does not anticipate 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; determination to capitalize interest on the debt if it
was not part of original plan; 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
(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.
City of Lino Lakes and Lino Lakes Economic Development Authority
Baker Tilly Municipal Advisors, LLC Page 14
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 ensure 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 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 Filing TIF Plan, Financial Reporting and Disclosure Requirements
The Authority will file the TIF Plan, and any subsequent amendments thereto, with the Commissioner of
Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision
4A. The Authority will comply with all reporting requirements for the TIF District under Minnesota
Statutes, Section 469.175, subdivisions 5 and 6.
Exhibit I
Map of
Tax Increment Financing (Economic Development) District No. 1-14
Proposed Tax Increment District
Clearwater Creek Business Park
0 300 600
Feet
1,200 Ü
9/7/2022
Exhibit II
Assumptions Report
City of Lino Lakes, Minnesota
Tax Increment Financing (Economic Development) District No. 1-14
Clearwater Creek Business Park Project
Draft TIF Plan Exhibits: 451,000 SF 3 Bldgs valued at $70/SF
Type of Tax Increment Financing District Economic Development
Maximum Duration of TIF District 8 years from 1st increment
Projected Certification Request Date 01/07/23
Decertification Date 12/31/33 (9 Years of Increment)
2022/2023
Base Estimated Market Value * $699,300
PID: 24-31-22-31-0004
24-31-22-24-0009
24-31-22-24-0008
24-31-22-24-0002
Original Net Tax Capacity $13,986
Assessment/Collection Year
2023/2024 2024/2025 2025/2026 2026/2027
Base Estimated Market Value $699,300 $699,300 $699,300 $699,300
Increase in Estimated Market Value 0 18,116,700 29,637,020 31,853,746
Total Estimated Market Value 699,300 18,816,000 30,336,320 32,553,046
Total Net Tax Capacity $13,986 $375,570 $605,976 $650,311
City of Lino Lakes 40.154%
Anoka County 29.605%
ISD # 12 31.074%
Other (61 - 36012B) 4.273%
Local Tax Capacity Rate 105.106% Payable 2022
Anticipated Frozen Tax Capacity Rate 105.106%
Fiscal Disparities Contribution From TIF District 42.1968%
Administrative Retainage Percent (maximum = 10%) 5.00%
Pooling Percent 0.00%
Present Value Date & Rate 08/01/23 4.00% Net Amount to Developer 2,900,000
Notes
* Base market values for parcels within district. Tax capacity calculated at 1.5%/2% class rate.
Assume property will be classified as commercial/industrial upon project completion.
Projections assume no future changes to class rates or tax rates,
and include 2% annual market value inflator.
Development includes construction commencing in 2023 and complete in 2024
Exhibit III Projected Tax Increment Report City of Lino Lakes, MinnesotaTax Increment Financing (Economic Development) District No. 1-14Clearwater Creek Business Park ProjectDraft TIF Plan Exhibits: 451,000 SF 3 Bldgs valued at $70/SFLess: Less: Retained Times: Less: Annual Less: Less:Annual Total Total Original Fiscal Captured Tax Annual State Aud. Revenue Admin. Pooling AnnualPeriod Market Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Net of Retainage Retainage NetEnding Value * Capacity Capacity ** 42.1968% Capacity Rate *** Increment 0.360% OSA Deduction 5.00% 0.00% Revenue(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)12/31/23 699,300 13,986 13,986 0 0 105.106% 0 0 0 0 0 012/31/24 699,300 13,986 13,986 0 0 105.106% 0 0 0 0 0 012/31/25 18,816,000 375,570 13,986 152,577 209,007 105.106% 219,679 791 218,888 10,944 0 207,94412/31/26 30,336,320 605,976 13,986 249,801 342,189 105.106% 359,662 1,295 358,367 17,918 0 340,44912/31/27 32,553,046 650,311 13,986 268,509 367,816 105.106% 386,597 1,392 385,205 19,260 0 365,94512/31/28 33,204,107 663,332 13,986 274,003 375,343 105.106% 394,508 1,420 393,088 19,654 0 373,43412/31/29 33,868,189 676,614 13,986 279,608 383,020 105.106% 402,577 1,449 401,128 20,056 0 381,07212/31/30 34,545,553 690,161 13,986 285,324 390,851 105.106% 410,808 1,479 409,329 20,466 0 388,86312/31/31 35,236,464 703,979 13,986 291,155 398,838 105.106% 419,203 1,509 417,694 20,885 0 396,80912/31/32 35,941,194 718,074 13,986 297,103 406,985 105.106% 427,766 1,540 426,226 21,311 0 404,91512/31/33 36,660,017 732,450 13,986 303,169 415,295 105.106% 436,500 1,571 434,929 21,746 0 413,183$3,457,300 $12,446 $3,444,854 $172,240 $0 $3,272,614* Total Taxable Value based on new estimated land and building value of $70/square foot for 451,000 square feet between all buildings** Original net tax capacity based on existing taxable land value of one property and calculated based on reclassification to commercial-industrial class rates*** Total Combined Local Tax Capacity Rate of City, County, School District and other taxing jurisdictions for taxes payable 2022
Exhibit IV Estimated Impact on Other Taxing Jurisdictions ReportCity of Lino Lakes, MinnesotaTax Increment Financing (Economic Development) District No. 1-14Clearwater Creek Business Park ProjectDraft TIF Plan Exhibits: 451,000 SF 3 Bldgs valued at $70/SFWithoutProject or TIF District With Project and TIF DistrictProjected Hypothetical2021/2022 2021/2022 Retained New Hypothetical Hypothetical Tax GeneratedTaxable 2021/2022 Taxable Captured Taxable Adjusted Decrease In by RetainedTaxing Net Tax Local Net Tax Net Tax Net Tax Local Local CapturedJurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*)City of Lino Lakes 29,439,929 40.154% 29,439,929 $415,295 29,855,224 39.595% 0.559% 164,438Anoka County 482,873,486 29.605% 482,873,486 415,295 483,288,781 29.580% 0.025% 122,843ISD # 12 47,053,418 31.074% 47,053,418 415,295 47,468,713 30.802% 0.272% 127,920 Other (2) --- 4.273% --- 415,295 --- 4.273% --- --- Totals 105.106% 104.250% 0.856% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each ofthe taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above)which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax ratewould decrease by 0.856% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that theRetained Captured Net Tax Capacity of the TIF District would generate is also shown above.Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions,then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 4.07% of the total tax rate.
Exhibit V
Market Value Analysis Report
City of Lino Lakes, Minnesota
Tax Increment Financing (Economic Development) District No. 1-14
Clearwater Creek Business Park Project
Draft TIF Plan Exhibits: 451,000 SF 3 Bldgs valued at $70/SF
Assumptions
Present Value Date 08/01/23
P.V. Rate - Gross T.I. 4.00%
Increase in EMV With TIF District $35,960,717
Less: P.V of Gross Tax Increment 2,692,001
Subtotal $33,268,716
Less: Increase in EMV Without TIF 0
Difference $33,268,716
Annual Present
Gross Tax Value @
Year Increment 4.00%
1 2025 219,679 201,782
2 2026 359,663 317,656
3 2027 386,598 328,312
4 2028 394,509 322,145
5 2029 402,578 316,090
6 2030 410,809 310,147
7 2031 419,204 304,313
8 2032 427,767 298,585
9 2033 436,501 292,963
$3,457,326 $2,692,001