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HomeMy WebLinkAbout9.30.21 Full Packet NOTICE OF MEETING City of Lake Elmo Economic Development Authority Meeting 3800 Laverne Avenue North Thursday, September 30, 2021 6:00 PM AGENDA A. Call to Order/Roll Call 6:00 p.m. B. Approval of August 26, 2021 Minutes 6:00 p.m. C. NorthPoint Development Intro 6:05 p.m. D. Refunding of the 2018A Bonds with proceeds from the 2021A Bonds and lease termination- Resolution 2021-001 6:30 p.m. E. Economic Development Draft Plan 6:45 p.m. F. Business Subsidy Policy 7:00 p.m. G. Next Meeting Date/Future Agenda Items/Reports 7:45 p.m. H. Adjourn 8:00 p.m. The Lake Elmo Economic Development Authority (EDA) is committed to preserving and enhancing our community by creating an attractive business climate and listening to businesses and residents to prepare for the economy of tomorrow. Page 1 of 1 CITY OF LAKE ELMO ECONOMIC DEVELOPMENT AUTHORITY MINUTES August 26, 2021 Call to Order/Roll Call President Ryberg called the meeting to order at 6:03 P.M. PRESENT: Jeff Holtz, Charles Cadenhead, Paul Ryberg and Tom Triplett. ABSENT: Mark Gaertner, Linda Larson Staff Present: City Administrator Handt Approval of July 21, 2021 Minutes: Minutes updated to reflect Tom Triplett present. Motion by Triplett, seconded by Cadenhead to approve the July 21, 2021 minutes as amended. Motion passed. Economic Development Draft Plan Chris Eng, Washington County Economic Development Director went through the draft plan with the commission. Triplett noted we should be asking what businesses residents want. Holtz commented that should fit into goal 2 when gathering data. The commission discussed and agreed that goals 4 and 5 could be combined. Goal 3 was left in but it was noted it will take time to accomplish. It should be rephrased o say Increase the number of commercial/industrial properties (to reduce impact on residential). A future meeting should be held to learn more about the different tax classifications in Lake Elmo. Mission and Vision Statement Development The commission reviewed mission statements from other EDAs in Washington County and began brainstorming one for Lake Elmo. The draft mission statement which will appear on agendas in the future is: “The EDA of Lake Elmo is committed to preserving and enhancing our community by creating an attractive business climate and listening to businesses and residents to prepare for the economy of tomorrow.” Eng will add this to the work plan and make other updates as discussed. The updated work plan will be brought to the next meeting. Next Meeting Date/Future Agenda/Reports The next meeting will be Thursday, September 30th, 2021 at 6pm. The agenda will include the updated draft of the work plan and possibly begin work on a business subsidy policy pending council work session. Eng gave a brief explanation of TIF. Handt reported on East Metro Economic Development Summit she attended August 12th. Adjourn Meeting adjourned at 7:25 P.M. Respectfully Submitted, Kristina Handt STAFF REPORT DATE: September 30, 2021 DISCUSSION AGENDA ITEM: NorthPoint Development Introduction TO: EDA Commissioners SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The city has a purchase agreement with North Point Development for 77 acres located south of CSAH 14 and east of CSAH 13 (across from Target). They are proposing to build just over a million square feet of office/warehouse space. The city has been asked by NorthPoint Development to consider approving a Tax Increment Finance (TIF) district for their development on 77 acres south of CSAH 14 and east of CSAH 13. The city council directed staff at their last work session to begin working on a business subsidy policy which will be discussed on a later agenda item. ISSUE BEFORE COMMISSION: Receive information about the project. Does the commission have any questions? PROPOSAL DETAILS/ANALYSIS: Included in your packet is some information on the proposed development by NorthPoint. Slide 5 outlines some public infrastructure costs typically paid by developers. In addition to these amounts, the TIF funds could cover the cost of the city expenses for sewer (about $750,000) and an AUAR for the whole 180 acres so the site north of CSAH 14 wouldn’t need to complete this work at a later date. These are all tentative items and subject to negotiation. FISCAL IMPACT: TBD ATTACHMENTS: • NorthPoint Info PROJECT ECONOMIC IMPACT AND NORTHPOINT PROFILE CYPHERS LOGISTICS PARK Lake Elmo, Minnesota LOGISTICS PARKCYPHERS LAKE ELMO, MINNESOTA CLP-LakeeLmo-090821 2 At a GlanceNORTHPOINTDEVELOPMENT CORPORATE SNAPSHOT BEYOND THE CONTRACT At a Glance NORTHPOINT WAS RANKED THE OVER THE LAST 5 YEARS BY #1INDUSTRIALDEVELOPER ACTIVEMARKETS CURRENTLY ACTIVE IN 23 STATES OFFICE LOCATIONS Kansas City: Headquarters St. Louis, Chicago, Cincinnati, Sacramento, Detroit, Harrisburg, Salt Lake City, Seattle 423+ INDUSTRIALCLIENTS References available from our clients; a few are represented below Offi ce Locations Industrial Markets INDUSTRIAL SPACE LEASED IN 2020 16.3+MILLION SF EST. JOBS CREATED IN OUR DEVELOPMENTS 65+THOUSAND CURRENTINDUSTRIAL PORTFOLIO 107.4+MILLION SF TOTAL CAPITAL RAISED SINCE INCEPTION $9.5+BILLION INDUSTRIAL SPACE UNDER CONSTRUCTION 27+MILLION SF CHARITABLE CONTRIBUTIONS SINCE INCEPTION $7.2+ MILLION *All stats last updated beginning of Q3 2021 LOGISTICS PARKCYPHERS LAKE ELMO, MINNESOTA CLP-LakeeLmo-090821 3 Conceptual Masterplan DEVELOPMENT OVERVIEW Site Area 76.6 acres Building Coverage 31.5% Total Building Area 1,074,000 sf Building 1 Area 415,000 sf Building 2 Area 189,000 sf Building 3 Area 189,000 sf Building 4 Area 281,000 sf BUILDING 1±391,000 SF 470' x 832' BUILDING 4 ±281,000 SF 284' x 988' BU I L D I N G 2 ±1 8 9 , 0 0 0 S F 26 0 ' x 7 2 8 ' BU I L D I N G 3 ±1 8 9 , 0 0 0 S F 26 0 ' x 7 2 8 ' Id e a l A v e n u e N Id e a l A v e n u e N 34th Street N.34th Street N.14 LOGISTICS PARKCYPHERS LAKE ELMO, MINNESOTA CLP-LakeeLmo-090821 4 BUILDING 1±391,000 SF 470' x 832' BUILDING 4 ±281,000 SF 284' x 988' BU I L D I N G 2 ±1 8 9 , 0 0 0 S F 26 0 ' x 7 2 8 ' BU I L D I N G 3 ±1 8 9 , 0 0 0 S F 26 0 ' x 7 2 8 ' Id e a l A v e n u e N Id e a l A v e n u e N 34th Street N.34th Street N.14 DEVELOPMENT OVERVIEW Site Area 76.6 acres Building Coverage 31.5% Total Building Area 1,074,000 sf Building 1 Area 415,000 sf Building 2 Area 189,000 sf Building 3 Area 189,000 sf Building 4 Area 281,000 sf $27MM Annual Wages & Benefits ±560 Permanent Job Creation ±76 Acres of Land 455 Construction Jobs PROPOSED MEDIAN CUT AND TURN LANE WITH POTENTIAL SIGNAL PUBLIC SEWER EXTENSION FOR FUTURE DEVELOPMENT Conceptual Masterplan LOGISTICS PARKCYPHERS LAKE ELMO, MINNESOTA CLP-LakeeLmo-090821 5 Public Improvements Estimate ITEM QUANTITY UNITS UNIT COST TOTAL Sewer Extension 1 EA $139,400 $139,400 Auger Under Rail 170 LF $1,180 $200,600 34th St. Signal 1 EA $450,000 $450,000 34th St. Curb Cut and Turn Lanes 1 EA $231,000 $231,000 TOTAL $1,021,000 PUBLIC IMPROVEMENTS $1,021,000 ESTIMATED LOGISTICS PARKCYPHERS LAKE ELMO, MINNESOTA CLP-LakeeLmo-090821 6 Job Impact Estimates and Assumptions, Summary $11.5+ MILLION Construction IN BENEFITS $3.4+ MILLION $20.8+ MILLION Warehouse IN BENEFITS $6.2+ MILLION $1.05+ MILLION Minnesota State WAREHOUSE $773+ THOUSAND CONSTRUCTION WAGES TAXES JOBS CONSTRUCTION JOBS 455 INDIRECT WAREHOUSE JOBS 560 DIRECT ESTIMATED $103.5M TOTAL CAPITAL INVESTMENT TOTAL 1.07M+ SQUARE FEET STAFF REPORT DATE: September 30, 2021 REGULAR AGENDA ITEM: Refunding of 2018A Bonds and Lease Termination TO: Economic Development Authority Commissioners SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: In 2018, the EDA approved a resolution authorizing the 2018A bonds. These were lease revenue bonds used to pay for the purchase of the Brookfield building. The EDA had to authorize those bonds and be the holder because we had tenants in the building. ISSUE BEFORE COMMITTEE: Should the EDA approve a resolution to prepay the 2018A bonds with the 2021A bond proceeds and terminate the lease agreement between the EDA and City for the property at 3880 Laverne Ave N? PROPOSAL DETAILS/ANALYSIS: Included in your packet is a resolution drafted by bond counsel to provide for the redemption of the 2018A bond with the 2021A bond proceeds. It also terminates the lease between the City and EDA from 2018 (copy attached). As part of the financing for the new city center, we will be refinancing the outstanding balance (about $834,000) on the 2018A bonds used to pay for the purchase of the Brookfield building. These were lease revenue bonds, not general obligation bonds, because of our tenants and carried a higher interest rate because of that. They are also taxable bonds which impacted the interest rate. The lease should also be terminated since the EDA will no longer own the building. The resolution authorizes the president and secretary to sign any necessary documents related to that action. FISCAL IMPACT: Anticipated lower interest rates will save the city money. The current interest rate on the 2018A bonds is 4.5%. With an anticipated interest rate of less than 2%, the city would save about $160,000. RECOMMENDATION: “Motion to approve Resolution No 2021-001 A Resolution Providing for the Redemption of Certain Outstanding Taxable Public Project Lease Revenue and Limited Tax Bonds, Series 2018A, and Authorizing Execution of Related Documents.” ATTACHMENT: •Resolution No 2021-001 •Lease Agreement LA515-85-748072.v3 EDA RESOLUTION NO. 2021-001 RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING TAXABLE PUBLIC PROJECT LEASE REVENUE AND LIMITED TAX BONDS, SERIES 2018A AND AUTHORIZING EXECUTION OF RELATED DOCUMENTS BE IT RESOLVED BY the Board of Commissioners (“Board”) of the Economic Development Authority of the City of Lake Elmo, Minnesota (the “EDA”) as follows: 1. Background; Findings. 1.01 The EDA previously issued its Taxable Public Project Lease Revenue and Limited Tax Bonds, Series 2018A, dated June 28, 2018 (the “Series 2018A Bonds”), in the original aggregate principal amount of $926,000 pursuant to a Trust Indenture, dated June 1, 2018 (the “Indenture”), between the EDA and U.S. Bank National Association, a national banking association, as trustee (the “Trustee”) and a resolution adopted by the EDA on June 5, 2018, (the “Bond Resolution”). The proceeds of the Series 2018A Bonds were used to finance the acquisition of certain property (the “Real Property”). The City of Lake Elmo, Minnesota (the “City”) currently leases the Real Property pursuant to a Lease-Purchase Agreement, dated as of June 1, 2018 (the “Lease Agreement”), between the EDA, as landlord, and the City, as tenant. Pursuant to Section 4.2 and Article X of the Lease Agreement, the City has determined to exercise its option to terminate the Lease Agreement and purchase the Facility from the EDA by defeasing and prepaying the Series 2018A Bonds. 1.02 At its meeting on November 3, 2021, the City Council of the City will consider a resolution authorizing the issuance of its General Obligation Improvement, CIP and Refunding Bonds, Series 2021A (the “2021 Bonds”) and the use of a portion of the proceeds of such bonds to acquire the Real Property by prepaying the EDA’s Series 2018A Bonds, which are currently outstanding in the principal amount of $834,000. 1.03 Article X of the Indenture provides that, following the satisfaction of certain conditions, the Series 2018A Bonds may be defeased and will no longer be considered outstanding under the Indenture. Those conditions include receipt by the Trustee of cash or direct obligations sufficient to pay and discharge the entire indebtedness on the Series 2018A Bonds and an opinion of bond counsel. 1.04 In accordance with the terms of the Lease Agreement and the Indenture, the EDA hereby acknowledges and consents to the City’s acquisition of the Real Property and the defeasance and prepayment of the Series 2018A Bonds, subject to final approval of the issuance of the 2021 Bonds by the City and in accordance with the provisions for the acquisition of the Real Property in the Lease Agreement and the prepayment of the Series 2018A Bonds as set forth in the resolution of the City Council of the City. LA515-85-748072.v3 2 2. Defeasance. 2.01 The President and the Secretary are hereby authorized and directed to execute, on behalf of the EDA, such documents as are necessary and appropriate to terminate the Lease Agreement and defease the Series 2018A Bonds, including but not limited to termination of the Lease Agreement and, if necessary, a deed conveying the Real Property to the City (collectively, the “EDA Documents”). The approval hereby given to the EDA Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the President and the Secretary, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as may act in their behalf. Section 3. Redemption of Series 2018A Bonds. Subject to final approval of the issuance of the 2021 Bonds by the City and in accordance with the provisions for the prepayment of the Series 2018A Bonds set forth in the resolution of the City Council of the City: (a) the Series 2018A Bonds maturing on January 15, 2034, comprising all of the Bonds subject to redemption, shall be prepaid and redeemed on the date set forth in the resolution of the City Council (the “Redemption Date”) and those Series 2018A Bonds are hereby called for redemption on the Redemption Date; and (b) the Trustee is authorized and directed to mail the notice of call for redemption of the Series 2018A Bonds in substantially the form attached hereto as Exhibit A. Section 4. Termination of Special Benefits Levy. The levy pledged to the payment of the Series 2018A Bonds and authorized under Minnesota Statutes, Section 469.033, subd. 6 and the EDA’s Resolution No. 2018-001 for collection in each year in which principal of or interest on the Series 2018A Bonds was due and payable, in an annual amount not to exceed the lesser of (i) the maximum annual amount of principal and interest due on the Series 2018A Bonds or (ii) the statutory maximum, pursuant to its taxing power under Minnesota Statutes, Section 469.033, subdivision 6 is hereby determined to be unnecessary and is hereby terminated and discontinued for taxes payable in 2021 and thereafter. (The remainder of this page is intentionally left blank.) LA515-85-748072.v3 3 Adopted by the Board of Commissioners of the Economic Development Authority of the City of Lake Elmo, Minnesota, this 30th day of September, 2021. President ATTEST: Secretary LA515-85-748072.v3 A-1 EXHIBIT A NOTICE OF CALL FOR REDEMPTION $926,000 Economic Development Authority of the City of Lake Elmo, Minnesota, Taxable Public Project Lease Revenue and Limited Tax Bonds, Series 2018A NOTICE IS HEREBY GIVEN that, by order of the Board of Commissioners of the Economic Development Authority of the City of Lake Elmo, Minnesota (the “EDA”), there have been called for redemption and prepayment on December 20, 2021 all outstanding obligations of the EDA designated as Taxable Public Project Lease Revenue and Limited Tax Bonds, Series 2018A, dated June 28, 2018, issued by the EDA in the original aggregate principal amount of $926,000, having a stated maturity date of January 15, 2034, totaling $834,000 in principal amount, and with the following CUSIP number: Year of Maturity Amount CUSIP 2034 $834,000 509625 AA7 The Bonds will be redeemed at a price of par plus accrued interest to December 20, 2021, on which date all interest on said bonds will cease to accrue. Holders of the Bonds hereby called for redemption are requested to present their bonds for payment at the main office of U.S. Bank National Association, St. Paul, Minnesota, (the “Trustee”), at the following address, on or before December 20, 2021. If by mail: If by hand or overnight: U.S. Bank National Association Corporate Trust Operations, 3rd Floor P.O. Box 64111 St. Paul, MN 55164-0111 U.S. Bank National Association 60 Livingston Avenue EP-MN-WS3C Bond Drop Window, 1st Floor St. Paul, MN 55107 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2009, the Trustee is required to withhold a specified percentage of the principal amount of the redemption price payable to the holder of any bonds subject to redemption and prepayment on the redemption date, unless the Trustee is provided with the Social Security Number or Federal Employer Identification Number of the holder, properly certified. Submission of a fully executed Request for Taxpayer Identification Number and Certification, Form W-9 will satisfy the requirements of this paragraph. LA515-85-748072.v3 A-2 The Trustee will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Additional information may be obtained from: U.S. Bank National Association Corporate Trust Division Bondholder Services (800) 525-8574 Dated: _________, 2021. BY ORDER OF THE BOARD OF COMMISSIONERS EXECUTION LEASE-PURCHASE AGREEMENT between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF LAKE ELMO, MINNESOTA as Lessor and the CITY OF LAKE ELMO, MINNESOTA as Lessee Dated as of June 1, 2018 Relating to: TAXABLE PUBLIC PROJECT LEASE REVENUE AND LIMITED TAX BONDS, SERIES 2018A This instrument drafted by: Dorsey & Whitney LLP (NC) Suite 1500 50 South Sixth Street Minneapolis, Minnesota 55402 (612) 340-2600 TABLE OF CONTENTS PAGE ARTICLE I DEFINITIONS AND EXHIBITS............................................................................... 2 Section 1.1. Definitions .................................................................................................... 2 Section 1.2. Exhibits......................................................................................................... 3 ARTICLE II REPRESENTATIONS, COVENANTS AND WARRANTIES ............................... 4 Section 2.1. Representations, Covenants and Warranties of Lessee ................................ 4 Section 2.2. Representations Covenants and Warranties of Lessor ................................. 4 ARTICLE III AGREEMENT TO LEASE ..................................................................................... 6 Section 3.1. Lease............................................................................................................. 6 Section 3.2. Possession and Enjoyment ........................................................................... 6 Section 3.3. Lessor Access to Real Property .................................................................... 6 ARTICLE IV TERM OF LEASE ................................................................................................... 7 Section 4.1. Term of Lease............................................................................................... 7 Section 4.2. Termination of Lease Term .......................................................................... 7 ARTICLE V RENTAL PAYMENTS ............................................................................................ 8 Section 5.1. Rental Payments ........................................................................................... 8 Section 5.2. Current Expense ........................................................................................... 8 Section 5.3. Rental Payments to be Unconditional .......................................................... 8 Section 5.4. Reserved ....................................................................................................... 8 Section 5.5. Intent to Continue Rental Payments; Appropriations .................................. 8 ARTICLE VI NONAPPROPRIATION ......................................................................................... 9 Section 6.1. Termination of Lease ................................................................................... 9 Section 6.2. Return of Real Property................................................................................ 9 Section 6.3. Effect of Termination ................................................................................... 9 Section 6.4. Reserved ....................................................................................................... 9 ARTICLE VII MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS ............ 10 Section 7.1. Maintenance and Modification of Real Property by Lessee ...................... 10 Section 7.2. Taxes, Other Government Charges and Utility Charges ............................ 10 Section 7.3. Liability Insurance...................................................................................... 11 Section 7.4. Lessee’s Negligence ................................................................................... 11 Section 7.5. Property Insurance...................................................................................... 11 Section 7.6. Worker’s Compensation Insurance ............................................................ 11 2 Section 7.7. Other Insurance and Requirements for All Insurance ................................ 11 Section 7.8. Advances .................................................................................................... 12 Section 7.9. Liens ........................................................................................................... 12 ARTICLE VIII DAMAGE, DESTRUCTION AND CONDEMNATION; USE OF NET PROCEEDS .................................................................................................................................. 13 Section 8.1. Damage, Destruction and Condemnation................................................... 13 Section 8.2. Cooperation of Lessor ................................................................................ 13 Section 8.3. Condemnation of Other Property Owned by Lessee .................................. 13 ARTICLE IX LESSEE’S EQUIPMENT; WARRANTIES ......................................................... 14 Section 9.1. Installation of Lessee’s Equipment ............................................................ 14 Section 9.2. Reserved ..................................................................................................... 14 Section 9.3. Reserved ..................................................................................................... 14 Section 9.4. Warranties .................................................................................................. 14 Section 9.5. Disclaimer of Warranties ........................................................................... 14 ARTICLE X OPTION TO PURCHASE ...................................................................................... 15 Section 10.1. When Available ........................................................................................ 15 Section 10.2. Exercise of Option .................................................................................... 15 Section 10.3. Release of Lessor’s Interest...................................................................... 15 Section 10.4. Defeasance ............................................................................................... 15 ARTICLE XI ASSIGNMENT, SUBLEASING, MORTGAGING AND SELLING .................. 16 Section 11.1. Assignment by Lessor .............................................................................. 16 Section 11.2. Assignment and Subleasing by Lessee..................................................... 16 Section 11.3. Restriction on Mortgage or Sale of Real Property by Lessee .................. 16 ARTICLE XII EVENTS OF DEFAULT AND REMEDIES ....................................................... 17 Section 12.1. Events of Default Defined ........................................................................ 17 Section 12.2. Remedies on Default ................................................................................ 18 Section 12.3. Return of Real Property............................................................................ 18 Section 12.4. Delay; Notice............................................................................................ 18 Section 12.5. No Remedy Exclusive .............................................................................. 18 Section 12.6. Agreement to Pay Attorneys’ Fees and Expenses .................................... 18 Section 12.7. No Additional Waiver Implied By One Waiver....................................... 19 ARTICLE XIII TITLE .................................................................................................................. 20 Section 13.1. Title to Real Property ............................................................................... 20 Section 13.2. Security Interest........................................................................................ 20 3 ARTICLE XIV ISSUANCE OF THE BONDS............................................................................ 21 Section 14.1. Agreement to Issue Bonds; Application of Bond Proceeds ..................... 21 ARTICLE XV ADMINISTRATIVE PROVISIONS ................................................................... 22 Section 15.1. Notices ...................................................................................................... 22 Section 15.2. Binding Effect .......................................................................................... 22 Section 15.3. Severability............................................................................................... 22 Section 15.4. Amendments, Charges and Modifications ............................................... 22 Section 15.5. Further Assurances and Corrective Instruments ...................................... 22 Section 15.6. Execution in Counterparts ........................................................................ 22 Section 15.7. Applicable Law ........................................................................................ 22 Section 15.8. Lessor and Lessee Representatives .......................................................... 22 Section 15.9. Captions .................................................................................................... 22 Exhibit A – A legal description of the Real Property. Exhibit B – The schedule of Rental Payments to be paid by Lessee to Lessor, showing the date and amount of each Rental Payment. LEASE-PURCHASE AGREEMENT This LEASE-PURCHASE AGREEMENT (the Lease) is executed as of June 1, 2018, between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF LAKE ELMO, MINNESOTA, as lessor (together with its successors and assigns, Lessor), whose address is 3800 Laverne Avenue N., Lake Elmo, Minnesota 55042, and the CITY OF LAKE ELMO, MINNESOTA, as lessee (Lessee), whose address is 3800 Laverne Avenue N., Lake Elmo, Minnesota 55042. RECITALS WHEREAS, the Lessee is authorized by Minnesota Statutes to acquire real and personal property by entering into lease-purchase agreements; WHEREAS, the Lessor has authorized the issuance of its $926,000 Taxable Public Project Lease Revenue and Limited Tax Bonds, Series 2018A (the Bonds), for the purpose of (i) acquiring certain the Real Property (as defined herein), and (ii) paying costs associated with the issuance of the Bonds (collectively, the Project); WHEREAS, upon issuance of the Bonds, good and marketable title to the Real Property will be in the Lessor; and WHEREAS, to secure payment of the Bonds, the Lessor hereby leases to the Lessee, and the Lessee hereby hires and takes from the Lessor, the Real Property, and for such purpose the Lessor grants to the Lessee for the term of this Lease all rights necessary for the Lessee to lease and purchase the Real Property. NOW, THEREFORE, in the joint and mutual exercise of their powers, and in consideration of the mutual covenants herein contained, the parties hereto recite and agree as follows: 2 ARTICLE I DEFINITIONS AND EXHIBITS Section 1.1. Definitions. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Lease, have the meanings herein specified. Code means the Internal Revenue Code of 1986, as now or hereafter amended, and the regulation and revenue rulings and procedures issued pursuant thereto from time to time. Fiscal Year means each twelve month fiscal period of Lessee commencing on January 1 of any year and ending on the following December 31. Indenture means the Trust Indenture entered into between Lessor and Trustee, dated as of the date hereof. Independent Counsel means an attorney duly admitted to the practice of law before the highest court of any state who is not an officer or a full-time employee of Lessor, Lessee or an assignee thereof. Lessee Representative means the City Administrator of Lessee, or any other person authorized to act on behalf of Lessee under or with respect to this Lease, as evidenced by a certificate conferring such authority executed by the City Administrator, given to the Trustee and the Lessor. Lessor Representative means the President or Secretary of Lessor, or any other person authorized to act on behalf of Lessor under or with respect to this Lease, as evidenced by a certificate conferring such authority executed by the President, given to the Trustee and the Lessee. Net Proceeds means any insurance proceeds or condemnation award paid with respect to the Real Property, remaining after payment therefrom of all expenses incurred in the collection thereof. Payment Date means the date upon which any Rental Payment is due and payable as provided in the attached Exhibit B. Permitted Encumbrances means, as of any particular time, (i) liens for taxes and assessments not then delinquent, or which Lessee may, pursuant to provisions of Article VII hereof, permit to remain unpaid; (ii) this Lease; (iii) any mechanic’s, laborer’s, materialmen’s, supplier’s or vendor’s lien or right not filed or perfected in the manner prescribed by law, or which Lessee may, pursuant to provisions of Article VII hereof, permit to remain unpaid; (iv) minor defects and irregularities in the title to the Real Property which do not in the aggregate materially impair the use of the Real Property for the purposes for which it is or may reasonably be expected to be held; (v) easements, exceptions or reservations for the purpose of pipelines, telephone lines, telegraph lines, power lines and substations, roads, streets, alleys, highways, railroad purposes, drainage and sewage purposes, dikes, canals, laterals, ditches, the removal of oil, gas, coal or other minerals, and other like purposes, or for the joint or common use of real property, facilities and equipment, which do not materially impair the use of the Real Property for the purposes for which 3 it is or may reasonably be expected to be held; (vi) rights reserved to or vested in any municipality or governmental or other public authority to control or regulate or use in any manner any portion of the Real Property which do not materially impair the use of the Real Property for the purposes for which it is or may reasonably be expected to be held; (vii) present and future valid zoning laws and ordinances; and (viii) any liens or encumbrances of record as of the date hereof. Qualified Investments means only those described in Minnesota Statutes, Section 475.67, Subdivision 8, or any successor statute. Real Property means the real property legally described in Exhibit A which is located at or about 3880 Laverne Avenue N. and 39th Street and Laverne Avenue N., in the City of Lake Elmo, County of Washington, Minnesota, including a 2.06 acre parcel with an approximately 18,000 square foot building and a vacant .58 acre parcel. Rental Payment means any payment due from Lessee to Lessor under Section 5.1 of this Lease. State means the State of Minnesota. State and Federal Law or Laws means the Constitution and laws of the State, any ordinance, rule or regulation of any agency or political subdivision of the State and any law of the United States, and any rule or regulation of any federal agency. Term of this Lease or Lease Term means the period during which this Lease remains in effect as specified in Sections 4.1 and 4.2. Trustee means U.S. Bank National Association, as trustee under the Indenture. Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part of this Lease: Exhibit A – A legal description of the Real Property. Exhibit B – The schedule of Rental Payments to be paid by Lessee to Lessor, showing the date and amount of each Rental Payment. 4 ARTICLE II REPRESENTATIONS, COVENANTS AND WARRANTIES Section 2.1. Representations, Covenants and Warranties of Lessee. Lessee represents, covenants and warrants as follows: (a) Lessee is a duly formed and validly existing body corporate and political subdivision of the State, governed by the Constitution and laws of the State. (b) State and Federal Laws authorize Lessee to acquire, lease, operate and maintain the Real Property; to enter into this Lease and the transactions contemplated hereby; and to carry out its obligations under this Lease. (c) The officers of Lessee executing this Lease and the documents contemplated hereby have been duly authorized to execute and deliver this Lease and related documents under the terms and provisions of a resolution of Lessee’s governing body or by other appropriate official action. (d) Lessee has complied with all open meeting laws, all public bidding laws and all other State and Federal Laws applicable to this Lease and the acquisition of the Real Property by Lessee. (e) Except as provided under the terms of this Lease, Lessee will not transfer, lease, assign, mortgage or encumber the Real Property. (f) Lessee may accomplish any of its obligations herein by an agent. Section 2.2. Representations Covenants and Warranties of Lessor. Lessor represents, covenants and warrants as follows: (a) Lessor is a public body, corporate and politic duly organized, existing and in good standing under the laws of the State; has full and complete power to issue the Bonds and to enter into this Lease and to enter into and carry out the transactions contemplated hereby, and to carry out its obligations hereunder; is possessed of full power to own and hold real and personal property, and to lease the same; and has duly authorized the issuance and delivery of the Bonds and the execution and delivery of this Lease. (b) Neither the issuance and delivery of the Bonds nor the execution and delivery of this Lease, nor the fulfillment of or compliance with the terms and conditions hereof, nor the consummation of the transactions contemplated hereby, conflicts with or results in a breach of the terms, conditions or provisions of any law, regulation, restriction or any agreement or instrument to which Lessor is now a party or by which Lessor or its property is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of Lessor, or upon the Real Property, except Permitted Encumbrances. 5 (c) Upon payment by Lessee of the amounts described in Section 10.1 hereof or the defeasance of Lessee’s obligations hereunder pursuant to Article X hereof, Lessor will deliver to Lessee all documents which are or may be necessary to vest all of Lessor’s right, title and interest in and to the Real Property in Lessee, and will release all liens and encumbrances created under this Lease. 6 ARTICLE III AGREEMENT TO LEASE Section 3.1. Lease. Lessor hereby leases, with an option to purchase, the Real Property to Lessee, and Lessee hereby leases, with an option to purchase, the Real Property from Lessor, upon the terms and conditions set forth in this Lease. Section 3.2. Possession and Enjoyment. Lessor hereby covenants with respect to the Real Property to provide Lessee during the Term of this Lease with quiet use and enjoyment of the Real Property, and Lessee shall during such Lease Term peaceably and quietly have and hold and enjoy the Real Property, without suit, trouble or hindrance from Lessor, except as expressly set forth in this Lease. Lessor will, at the request of Lessee and at Lessee’s cost, join in any legal action in which Lessee asserts its right to such possession and enjoyment to the extent Lessor may lawfully do so. Section 3.3. Lessor Access to Real Property. Lessee agrees that Lessor shall have the right during Lessee’s normal working hours on Lessee’s normal working days to enter on and examine and inspect the Real Property for the purpose of assuring that the Real Property is being properly maintained, preserved and kept in good repair and condition. Lessee further agrees that Lessor shall have such rights of access to the Real Property as may be reasonably necessary to cause the proper maintenance of the Real Property in the event of failure by Lessee to perform its obligations hereunder. 7 ARTICLE IV TERM OF LEASE Section 4.1. Term of Lease. This Lease shall be and remain in effect with respect to the Real Property for a Lease Term commencing on the date of execution hereof and continuing until terminated as provided in Section 4.2. Section 4.2. Termination of Lease Term. The Term of this Lease will terminate upon the occurrence of the first of the following events: (a) the termination by Lessee of its obligation to make any further Rental Payments in accordance with Section 6.1; (b) the exercise by Lessee of its option to purchase Lessor’s interest in the Real Property or to defease its obligations hereunder pursuant to Article X; (c) a default by Lessee and termination of this Lease pursuant to Article XII; or (d) the payment by Lessee of all Rental Payments required to be paid by Lessee hereunder. 8 ARTICLE V RENTAL PAYMENTS Section 5.1. Rental Payments. Lessee shall pay semiannual Rental Payments with respect to the Real Property on each Payment Date, as set forth in Exhibit B, three business days prior to the dates that payments are due on the Bonds, as further described in the Indenture, which Rental Payments are sufficient to pay the principal of, premium, if any, on and interest on the Bonds when due. The Rental Payments shall be payable to the Trustee, as assignee of the Lessor’s right, title and interest in such Rental Payments, at its address specified in Section 14.08 of the Indenture. Section 5.2. Current Expense. The obligations of Lessee under this Lease, including its obligation to pay the Rental Payments due with respect to the Real Property in any Fiscal Year for which this Lease is in effect, shall constitute a current expense of Lessee for such Fiscal Year and shall not constitute an indebtedness of Lessee within the meaning of the Constitution and laws of the State. Nothing herein shall constitute a pledge by Lessee of any taxes or other moneys, other than moneys lawfully appropriated from time to time by or for the benefit of Lessee in its annual budget, the proceeds or Net Proceeds of the Real Property, to the payment of any Rental Payment or other amount coming due hereunder. Section 5.3. Rental Payments to be Unconditional. Except as provided in Section 6.1, the obligation of Lessee to make Rental Payments due with respect to the Real Property or any other payments required hereunder shall be absolute and unconditional in all events. Notwithstanding any dispute between Lessee and Lessor or any other person, Lessee shall make all Rental Payments and other payments required hereunder when due and shall not withhold any Rental Payment or other payment pending final resolution of such dispute nor shall Lessee assert any right of set-off or counterclaim against its obligation to make such Rental Payments or other payments required under this Lease. Lessee’s obligation to make Rental Payments or other payments during the Lease Term shall not be abated through accident or unforeseen circumstances. However, nothing herein shall be construed to release Lessor from the performance of its obligations hereunder, and if Lessor should fail to perform any such obligation, Lessee may institute such legal action against Lessor as Lessee may deem necessary to compel the performance of such obligation or to recover damages therefor. Section 5.4. Reserved. Section 5.5. Intent to Continue Rental Payments; Appropriations. Lessee presently intends to continue this Lease for the entire Term of this Lease and to pay all Rental Payments required hereunder. Lessee reasonably and in good faith believes that amounts sufficient to pay all Rental Payments due hereunder can and will lawfully be appropriated or budgeted and made available for this purpose during the Lease Term. 9 ARTICLE VI NONAPPROPRIATION Section 6.1. Termination of Lease. Lessee shall have the right to cancel and terminate this Lease, in whole but not in part, effective at the end of any Fiscal Year of Lessee, in the manner and subject to the terms specified in this Section and Section 6.3, if Lessee is not authorized by law to appropriate or does not appropriate moneys sufficient to pay the Rental Payments coming due in the next Fiscal Year. Lack of a sufficient appropriation shall be evidenced by a specific provision in Lessee’s budget for the Fiscal Year in question so stating. Lessee may effect such termination by giving to Lessor a written notice of nonappropriation and termination and by paying to Lessor any Rental Payments which are due and have not been paid at or before the end of its then current Fiscal Year. Lessee shall endeavor to give notice of termination not less than 120 days prior to the end of such Fiscal Year, and shall notify Lessor of any anticipated termination. Section 6.2. Return of Real Property. In the event of termination of this Lease as provided in Section 6.1, Lessee shall surrender possession of the Real Property to Lessor in accordance with Section 12.3, and release its interest in the same, as granted under this Lease, within 10 days after the termination of this Lease. Section 6.3. Effect of Termination. Upon termination of Lessee’s obligation to make Rental Payments as provided in Section 6.1, Lessee shall not be responsible for the payment of any additional Rental Payments coming due with respect to succeeding Fiscal Years, but if Lessee has not surrendered possession of the Real Property to Lessor in accordance with Sections 6.2 and 12.3, the termination shall nevertheless be effective, but Lessee shall be responsible for the payment of damages in an amount equal to the amount of the Rental Payments thereafter coming due under Exhibit B which are attributable to the number of days during which Lessee fails to take such actions. Section 6.4. Reserved. 10 ARTICLE VII MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS Section 7.1. Maintenance and Modification of Real Property by Lessee. Lessee shall, at its own expense, maintain, preserve and keep the improved portions of the Real Property in good repair, working order and condition, and shall from time to time make all repairs, replacements and improvements necessary to keep the improved portions of the Real Property in such condition. Lessor shall have no responsibility for any of these repairs, replacements or improvements. In addition, Lessee shall, at its own expense, have the right to remodel the improved portions of the Real Property or to make additions, modifications and improvements thereto. All such additions, modifications and improvements shall thereafter comprise part of the Real Property and be subject to the provisions of this Lease. Such additions, modifications and improvements shall not in any way damage the improved portions of the Real Property nor cause the Real Property to be used for purposes other than those authorized under the provisions of State law, and the Real Property, upon completion of any additions, modifications and improvements made pursuant to this Section, shall be of a value not less than the value of the Real Property immediately prior to the making of such additions, modifications and improvements. Any property for which a substitution or replacement is made pursuant to this Section may be disposed of by Lessee in such manner and on such terms as are determined by Lessee. Lessee will not permit any mechanic’s or other lien to be established or remain against the Real Property for labor or material furnished in connection with any remodeling, additions, modifications, improvements, repairs, renewals or replacements made by Lessee pursuant to this Section; provided that if any such lien is established and Lessee shall first notify Lessor of Lessee’s intention to do so, Lessee may in good faith contest any lien filed or established against the Real Property, and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom unless Lessor shall notify Lessee that, in the opinion of Independent Counsel, by nonpayment of such item the interest of Lessor in the Real Property will be materially endangered or the Real Property or any part thereof will be subject to loss or forfeiture, in which event Lessee shall promptly pay and cause to be satisfied and discharged all such unpaid items or provide Lessor with full security against any such loss or forfeiture, in form satisfactory to Lessor. Lessor will cooperate fully with Lessee in any such contest, upon the request and at the expense of Lessee. Section 7.2. Taxes, Other Government Charges and Utility Charges. Lessee shall also pay when due all gas, water, steam, electricity, heat, power, telephone, and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Real Property. Lessee shall also pay all property and excise taxes and governmental charges of any kind whatsoever which may at any time be lawfully assessed or levied against or with respect to the Real Property or any part thereof, and which become due during the Term of this Lease with respect thereto, and all special assessments and charges lawfully made by any governmental body for public improvements that may be secured by a lien on the Real Property; provided that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such installments as are required to be paid during the Term of this Lease as and when the same become due. Lessee may, at Lessee’s expense and in Lessee’s name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the 11 taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless Lessor shall notify Lessee that, in the opinion of Independent Counsel, by nonpayment of any such items the interest of Lessor in the Real Property will be materially endangered or the Real Property or any part thereof will be subject to loss or forfeiture, in which event Lessee shall promptly pay such taxes, assessments or charges or provide Lessor with full security against any loss which may result from nonpayment, in form satisfactory to Lessor. Section 7.3. Liability Insurance. Upon receipt of possession of the Real Property, the Lessee shall take such measures as may be necessary to ensure that any liability for injuries to or death of any person or damage to or loss of property arising out of or in any way relating to the condition or the operation of the Real Property or any part thereof, is covered by a blanket or other general liability insurance policy maintained by the Lessee. The Net Proceeds of all such insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which any Net Proceeds may be paid. Section 7.4. Lessee’s Negligence. Lessee assumes all risks and liabilities, whether or not covered by insurance, for loss or damage to the Real Property and for injury to or death of any person or damage to any property, whether such injury or death be with respect to agents or employees of Lessee or of third parties, and whether such property damage be to Lessee’s property or the property of others, which is proximately caused by the negligent conduct of Lessee, its officers, employees and agents. Lessee hereby assumes responsibility for and agrees to reimburse Lessor and Trustee for all liabilities, obligations, losses, damages, penalties, claims, actions, costs and expenses (including reasonable attorney’s fees) whatsoever kind and nature, imposed on, incurred by or asserted against Lessor or Trustee that in any way relate to or arise out of a claim, suit or proceeding based in whole or in part upon the negligent conduct of Lessee, its officers, employees and agents, to the maximum extent permitted by law. Section 7.5. Property Insurance. Upon receipt of possession of the Real Property, the Lessee shall have and assume the risk of loss with respect thereto. The Lessee shall procure and maintain continuously in effect during the Lease Term, all-risk insurance, subject only to the standard exclusions contained in the policy, in such amount as will be at least sufficient so that a claim may be made for the full replacement cost of any part thereof damaged or destroyed and to pay the applicable purchase price of the Real Property as set forth in Section 10.1. Such insurance may be provided by a rider to an existing policy or under a separate policy. Such insurance may be written with customary deductible amounts. The Net Proceeds of insurance required by this Section shall be applied to the prompt repair, restoration or replacement of the Real Property, or to the purchase of the Real Property, as provided in Section 8.1. Any Net Proceeds not needed for those purposes shall be paid to the Lessee. Section 7.6. Worker’s Compensation Insurance. If required by State law, the Lessee shall carry worker’s compensation insurance covering all its employees on, in, near or about the Real Property. Alternatively, the Lessee may self-insure against such liabilities in accordance with applicable law. Section 7.7. Other Insurance and Requirements for All Insurance. All insurance required by this Article may be carried under a separate policy or a rider or endorsement; shall be 12 taken out and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State; shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to all parties at least ten (10) days before the cancellation or revision becomes effective; and shall name Lessee and Lessor as insured parties. Lessee shall deposit with Lessor policies evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in full force and effect. Before the expiration of any such policy, Lessee shall furnish to Lessor evidence that the policy has been renewed or replaced by another policy conforming to the provisions of this Article, unless such insurance is no longer obtainable in which event Lessee shall notify Lessor of this fact. Section 7.8. Advances. If Lessee shall fail to perform any of its obligations under this Lease, Lessor may, but shall not be obligated to take such action as may be necessary to cure such failure, including the advancement of money, and Lessee shall be obligated to repay all such advances on demand with interest at the maximum rate permitted by law or 12%, whichever is less, from the date of the advance to the date of repayment. Section 7.9. Liens. Lessee shall not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Real Property, other than the respective rights of Lessor and Lessee as herein provided and Permitted Encumbrances. Except as expressly provided in this Article, Lessee shall promptly, at its own expense, take such action as may be necessary duly to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim. 13 ARTICLE VIII DAMAGE, DESTRUCTION AND CONDEMNATION; USE OF NET PROCEEDS Section 8.1. Damage, Destruction and Condemnation. If (i) more than 25% of the value of the Real Property or any portion thereof is destroyed or is damaged by fire or other casualty, or (ii) title to or the temporary use of the Real Property or any part thereof, or the interest of Lessee or Lessor in the Real Property or any part thereof, shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under governmental authority, Lessee, unless it has determined to terminate this Lease in accordance with Section 6.1 hereof, shall be entitled to the Net Proceeds of any insurance or condemnation award and shall apply such Net Proceeds (x) to the prompt repair, restoration, modification or improvement of the Real Property by Lessee, in which event Lessee shall be obligated to continue to pay the Rental Payments due with respect to the Real Property, or (y) to the payment of the applicable prepayment price in accordance with Article X. In the event the Lessee has determined to terminate this Lease in accordance with Section 6.1 hereof, the Lessee shall turn over such Net Proceeds to the Lessor. Section 8.2. Cooperation of Lessor. Lessor shall cooperate fully with Lessee at the expense of Lessee in filing any proof of loss with respect to any insurance policy covering the casualties described in Section 8.1 hereof and in the prosecution or defense of any prospective or pending condemnation proceeding with respect to the Real Property or any part thereof and will, to the extent it may lawfully do so, permit Lessee to litigate in any proceeding resulting therefrom in the name of and on behalf of Lessor. In no event will Lessor voluntarily settle, or consent to the settlement of, any proceeding arising out of any insurance claim or any prospective or pending condemnation proceeding with respect to the Real Property or any part thereof without the written consent of Lessee. Section 8.3. Condemnation of Other Property Owned by Lessee. Lessee shall be entitled to the Net Proceeds of any condemnation award or portion thereof made for destruction of, damage to or taking of its property not included in the Real Property. 14 ARTICLE IX LESSEE’S EQUIPMENT; WARRANTIES Section 9.1. Installation of Lessee’s Equipment. Lessee may at any time and from time to time, in its sole discretion and its own expense, install items of moveable machinery, standard office partition, railings, doors, lighting fixtures, and such other equipment as may in Lessee’s judgment be necessary for its purposes, in or upon the Real Property. All such items shall remain the sole property of Lessee, in which Lessor shall have no interest, and may be modified or removed by Lessee at any time provided that Lessee shall repair and restore any and all damage to the Real Property resulting from the installation, modification or removal of any such items. Nothing in this Lease shall prevent Lessee from purchasing items to be installed pursuant to this Section under a conditional sale or lease with option to purchase contract, or subject to a vendor’s lien or security agreement, as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any part of the Real Property. Section 9.2. Reserved. Section 9.3. Reserved. Section 9.4. Warranties. Lessor hereby assigns to Lessee for and during the Term of this Lease, all of its interest in all warranties and guarantees or other contract rights against any architect, contractor or manufacturer for the Real Property, expressed or implied, issued on or applicable to the Real Property, and Lessor hereby authorizes Lessee to obtain the customary services furnished in connection with such warranties and guarantees at Lessee’s expense. Lessee’s sole remedy for the breach of such warranties and guarantees shall be against the manufacturer or supplier of such portion of the Real Property or such contractor or architect, and not against Lessor, nor shall such matter have any effect whatsoever on the rights of the Lessor with respect to this Lease, including the right to receive full and timely payments hereunder. Lessee expressly acknowledges that Lessor does not make and has not made any representation or warranty whatsoever as to the existence or availability of such warranties with respect to the Real Property or any portion thereof. Section 9.5. Disclaimer of Warranties. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESSED OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR THE USE CONTEMPLATED BY LESSEE OF THE REAL PROPERTY, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE REAL PROPERTY. In no event shall Lessor be liable for any incidental, indirect, special or consequential damage in connection with or arising out of this Lease or the existence, furnishing, functioning or Lessee’s use of any portion of the Real Property provided for in this Lease. 15 ARTICLE X OPTION TO PURCHASE Section 10.1. When Available. Lessee shall have the option to purchase Lessor’s interest in the Real Property at a price equal to the principal amount of Rental Payments outstanding, plus accrued interest to the date of prepayment, only in the manner provided in this Article, (i) on any date, but only if Lessee is not in default under this Lease, and (ii) on any date pursuant to the events described in Section 8.1 hereof. Section 10.2. Exercise of Option. Lessee shall give notice to Lessor of its intention to exercise its option not less than forty-five (45) days prior to the date on which the option is to be exercised, and shall deposit with Lessor on the date of exercise an amount equal to all Rental Payments and any other amounts then due or past due. The closing shall be on the date on which the option is to be exercised at the office of Lessor. Section 10.3. Release of Lessor’s Interest. Upon exercise by Lessee of its option to purchase, Lessee shall have no further obligations under this Lease and Lessor and its officers shall take all actions necessary to authorize, execute and deliver to Lessee any and all documents necessary to vest in Lessee, all of Lessor’s right, title and interest in and to the Real Property, free and clear of all liens, leasehold interest and encumbrances arising under the provisions of this Lease. Section 10.4. Defeasance. Lessee shall have the right to defease and satisfy its obligations to pay Rental Payments due under this Lease, in the manner and with the effect provided in this Section; but such right may only be exercised if Lessee is not in default under the Lease, or if the exercise of such right would cure such default. If the whole amount of the Rental Payments due and payable under this Lease shall be paid, or provision shall have been made for the payment of the same by the deposit of cash or Qualified Investments in an amount sufficient (together with interest earnings thereon) to provide for payment of said Rental Payments to the last Payment Date, or earlier date on which the option to purchase of Lessee is exercised, and all administrative expenses related thereto shall have been paid or provided for, then, and in that case, all right, title and interest of Lessor in and to the Real Property, this Lease and the Rental Payments due hereunder shall thereupon cease, terminate and become void; and Lessor shall assign and transfer to or upon the order of Lessee all rights in the Real Property and this Lease then held by Lessor, and shall execute such documents as may be reasonably required by Lessee for this purpose; and thereafter the Rental Payments due hereunder shall be payable solely from the moneys and securities so deposited. 16 ARTICLE XI ASSIGNMENT, SUBLEASING, MORTGAGING AND SELLING Section 11.1. Assignment by Lessor. Lessor shall not assign its obligations under this Lease, and no purported assignment thereof shall be effective. All of Lessor’s rights, title and interest in the Rental Payments shall be assigned to the Trustee for the benefit of the holders of the Bonds. No other rights, title and/or interests of the Lessor may be assigned. Section 11.2. Assignment and Subleasing by Lessee. This Lease may not be assigned by Lessee without the written consent of Lessor and the Trustee. The Lessee may sublease all or any portion of the Real Property and collect reasonable rents from any third-party user of the Real Property without prior written consent of the Lessor or the Trustee. Section 11.3. Restriction on Mortgage or Sale of Real Property by Lessee. Lessee will not mortgage, sell, assign, transfer or convey the Real Property or any portion thereof during the Term of this Lease without the written consent of Lessor, except as permitted pursuant to Section 7.1 in the event of a permitted substitution or replacement. 17 ARTICLE XII EVENTS OF DEFAULT AND REMEDIES Section 12.1. Events of Default Defined. The following shall be “events of default” under this Lease and the terms “events of default” and “default” shall mean, whenever they are used in this Lease, with respect to the Real Property, any one or more of the following events: (a) Failure by Lessee to pay any Rental Payment or other payment required to be paid hereunder on the due date specified herein and the continuation of said failure for a period of three (3) business days after written notice given by Lessor that the payment referred to in such notice has not been received. (b) Failure by Lessee to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as referred to in clause (a) of this Section, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied has been given to Lessee by Lessor, unless Lessor shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, Lessor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Lessee within the applicable period and diligently pursued until the default is corrected. (c) The filing by Lessee of a voluntary petition in bankruptcy, or failure by Lessee promptly to lift any execution, garnishment or attachment of such consequence as would impair the ability of Lessee to carry on its operations at the Real Property, or adjudication of Lessee as a bankrupt, or assignment by Lessee into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to Lessee in any proceedings instituted under the provisions of the Federal Bankruptcy Statute, as amended, or under any similar acts which may hereafter be enacted. The provisions of this Section 12.1 and Section 12.2 are subject to the following limitation: if by reason of force majeure Lessee is unable in whole or part to carry out its obligations under this Lease with respect to the Real Property, other than the obligation of Lessee to pay Rental Payments with respect thereto which shall be paid when due notwithstanding the provisions of this paragraph, Lessor or Lessee shall not be deemed in default during the continuance of such inability. The term “force majeure” as used herein shall mean, without limitation, the following: acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or restraints of any kind of the government of the United States of America or any of its departments, agencies or officials, or any civil or military authority; insurrections; riots; landslides; earthquakes; fires; storms; droughts; floods; explosions; breakage or accident to machinery, transmission pipes or canals; or any other cause of event not reasonably within the control of Lessee and not resulting from its negligence. Lessee agrees, however, to remedy with all reasonable dispatch the cause or causes preventing it from carrying out its obligations under this Lease; provided that the settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of Lessee and Lessee shall not be required to make settlement of strikes, lockouts and other industrial 18 disturbances by acceding to the demands of the opposing party or parties when such course is in its judgment unfavorable to Lessee. Notwithstanding anything contained in this Section 12.1 to the contrary, a failure by Lessee to pay when due any payment required to be made under this Lease or a failure by Lessee to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Lease, resulting from Lessee’s termination of the Lease as contemplated by Section 6.1 hereof, shall not constitute an event of default under this Section 12.1. Section 12.2. Remedies on Default. Whenever any event of default referred to in Section 12.1 hereof shall have happened and be continuing with respect to the Real Property, Lessor shall have the right, at its option and without any further demand or notice, to take one or any combination of the following remedial steps: (a) Terminate this Lease, re-enter and take possession of the Real Property and exclude Lessee from using it; or (b) Terminate this Lease, declare all Rental Payments due or to become due during the Fiscal Year of Lessee in effect when the default occurs to be immediately due and payable by Lessee, whereupon such Rental Payments shall be immediately due and payable; or (c) Terminate this Lease and take whatever action at law or in equity may appear necessary or desirable to collect the Rental Payments then due and thereafter to become due during the then current Fiscal Year of Lessee with respect to the Real Property, or enforce performance and observance of any obligation, agreement or covenant of Lessee under this Lease. Section 12.3. Return of Real Property. Upon the expiration or termination of this Lease prior to the payment of all Rental Payments in accordance with Exhibit B, Lessee shall deliver possession of the Real Property to Lessor in the condition, repair, appearance and working order required in Section 7.1. Lessor shall take the Real Property subject to any sublease then in effect. Section 12.4. Delay; Notice. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle any party to exercise any remedy reserved to it in this Lease it shall not be necessary to give any notice, other than such notice as may be required in this Lease. Section 12.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 12.6. Agreement to Pay Attorneys’ Fees and Expenses. In the event either party to this Lease should default under any of the provisions hereof and the non-defaulting party should 19 employ attorneys or incur other expenses for the collection of moneys or the enforcement or performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party agrees that it will on demand therefore pay to the non-defaulting party the reasonable fee of such attorneys and such other expenses so incurred by the non- defaulting party. Section 12.7. No Additional Waiver Implied By One Waiver. In the event any agreement contained in this Lease should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. 20 ARTICLE XIII TITLE Section 13.1. Title to Real Property. During the Term of this Lease, legal title to the Real Property and any and all repairs, replacements, substitutions and modifications thereto shall be in Lessor, subject to Lessee’s interests under this Lease. Upon termination of this Lease for either of the reasons specified in Section 4.2, Clauses (b) and (d), Lessor shall transfer legal title to the Real Property to Lessee and Lessor shall have no further interest therein. In either of such events, Lessor shall execute and deliver to Lessee such documents as Lessee may request to evidence such transfer of legal title to the Real Property to Lessee. Upon termination of this Lease for either of the reasons specified in Section 4.2, Clauses (a) and (c), Lessee shall surrender possession of the Real Property to Lessor and shall have no further interest therein. In either of such events Lessee shall execute and deliver to Lessor such documents as Lessor may request to evidence the termination of Lessee’s interest in the Real Property. Section 13.2. Security Interest. Lessor shall have and retain a security interest under the Uniform Commercial Code in any portion of the Real Property constituting personal property or fixtures, the proceeds thereof and all repairs, replacements, substitutions and modifications thereto or thereof made pursuant to Section 7.1, in order to secure Lessee’s payment of all Rental Payments due during the Term of this Lease and the performance of all other obligations herein to be performed by Lessee. 21 ARTICLE XIV ISSUANCE OF THE BONDS Section 14.1. Agreement to Issue Bonds; Application of Bond Proceeds. In order to provide funds for payment of the costs of the Project, the Lessor has, or will have, upon or promptly after the execution of this Lease, issued and delivered to the initial purchaser thereof the Bonds, and the Lessor has or will have deposited proceeds of the Bonds as described in Section 4.01 of the Indenture. 22 ARTICLE XV ADMINISTRATIVE PROVISIONS Section 15.1. Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given on the earlier of (i) delivery or (ii) three days following deposit in the United States mail in certified or registered form with postage fully prepaid to the addresses shown in the first paragraph hereof. Lessor and Lessee, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent. Section 15.2. Binding Effect. This Lease shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. Section 15.3. Severability. In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 15.4. Amendments, Charges and Modifications. This Lease may be amended or any of its terms modified only by written amendment authorized and executed by Lessee and Lessor. Section 15.5. Further Assurances and Corrective Instruments. Lessor and Lessee agree that they will, if necessary, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Real Property hereby leased or intended so to be or for carrying out the expressed intention of this Lease. Section 15.6. Execution in Counterparts. This Lease may be simultaneously executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. Section 15.7. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State. Section 15.8. Lessor and Lessee Representatives. Whenever under the provisions of this Lease the approval of Lessor or Lessee is required, or Lessor or Lessee is required to take some action at the request of the other, such approval of such request shall be given for Lessor by a Lessor Representative and for Lessee by a Lessee Representative, and any party hereto shall be authorized to rely upon any such approval or request. Section 15.9. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Sections of this Lease. S-1 IN WITNESS WHEREOF, Lessor has caused this Lease to be executed in its corporate name by its duly authorized officers, and Lessee has caused this Lease to be executed in its name by its duly authorized officers, as of the date first above written. Lessor: ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF LAKE ELMO, MINNESOTA By President Attest Secretary STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this ______ day of June, 2018, by Steve Nelson and Kristina Handt, the President and Secretary, respectively, of the Economic Development Authority of the City of Lake Elmo, Minnesota, on behalf of such Authority. IN WITNESS WHEREOF I have hereunto set my hand and official seal. Notary Public (SEAL) [Signature Page – Lease-Purchase Agreement] S-2 Lessee: CITY OF LAKE ELMO, MINNESOTA By Mayor And City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this ____ day of June, 2018, by Michael Pearson and Julie Johnson, the Mayor and City Clerk, respectively, of the City of Lake Elmo, Minnesota, on behalf of the City. IN WITNESS WHEREOF I have hereunto set my hand and official seal. Notary Public (SEAL) [Signature Page – Lease-Purchase Agreement] A-1 EXHIBIT A DESCRIPTION OF REAL PROPERTY B-1 EXHIBIT B RENTAL PAYMENT SCHEDULE* *The PAYMENT DATE for Rental Payments due under this Lease shall be three business days prior to each bond payment date provided. STAFF REPORT DATE: September 30, 2021 REGULAR AGENDA ITEM: Draft Economic Development Plan TO: Economic Development Authority Commissioners SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: At the last couple of meetings Chris Eng has been helping us develop and economic development plan and mission statement. ISSUE BEFORE COMMITTEE: What feedback, changes, and additions would the commission like to make to the draft plan? Is the commission ready to recommend the plan to the City Council for adoption? PROPOSAL DETAILS/ANALYSIS: A copy of the draft plan is attached. It has been updated from the last meeting to include the mission statement and other changes the commission discussed about changing and combining goals. Chris also did some research and found information about fiscal disparities which shows that Lake Elmo's tax base is 15% commercial/industrial. FISCAL IMPACT: While most of the items can be completed with staff and commissioner time, the labor market study will have a financial impact. No cost estimates have been obtained at this point and no funding is included in the 2022 budget for the EDA. RECOMMENDATION: “Motion to recommend the 2021-2023 Lake Elmo Economic Development Work Plan to the City Council.” ATTACHMENT: •Draft 2021-2023 Lake Elmo Economic Development Work Plan Draft 8/27/2021 1 2021 – 2023 Lake Elmo EDA Economic Development Work Plan Lake Elmo EDA Mission The Lake Elmo Economic Development Authority (EDA) is committed to preserving and enhancing our community by creating an attractive business climate and listening to businesses and residents to prepare for the economy of tomorrow. Goals 1. Develop strong relationships with existing businesses and explore options for a Business Retention and Expansion (B,R&E) Visitation Program 2. Develop data (talent availability, business types, demographic information) 3. Increase the number of commercial and industrial business 4. Develop and maintain sense of place and create new positive community perception Planning Process The purpose of this document is to serve as the Lake Elmo EDA 2021 Economic Development Strategic Plan with a planning horizon through 2023. Strengths, Weaknesses, Opportunities and Threats / 2040 Comp Plan To assist in the EDA’s discussion and to help achieve the goals and action steps identified within this plan, a summary of the July 21, 2021 group discussion on Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis and also includes maps from the 2040 Comprehensive Plan Update is included as Attachment A. Draft 8/27/2021 2 Goals/Action Steps/Deliverables 1. Develop strong relationships with existing businesses and explore options for a Business Retention and Expansion (B,R&E) Program. Action Step: City and Washington County CDA staff will research and explore options for a business retention and expansion visitation program. Staff will: 1) work to create a list for possible businesses to visit, 2) develop and recommend a proposed program structure including timing, 3) create a draft business survey and 4) discuss the potential interview process and overall program operations including reporting the survey results. Recommendations will be brought to the EDA for consideration, input and discussion. Deliverables: Staff will be providing potential program options to EDA for discussion and consideration. This will begin in the fourth quarter of 2021 and will be ongoing. 2. Develop data (including talent availability, business types, demographic data) Action Step: City staff with assistance from Washington County CDA staff and DEED will provide community demographic information (including but not limited to: talent availability, business types, community profile, demographic data). Action Step: City staff with assistance from the Washington County CDA will explore hiring a consultant to update/undertake a detailed labor market study and then report back to the EDA Board. Action Step: City staff with assistance from the Washington County CDA will explore options to obtain resident input through a survey and then report back to the EDA Board. Deliverables: The labor market study and demographic/data study update will begin in 2022 or sooner contingent on available funding. 3. Increase the number of commercial and industrial businesses Action Step: City staff with the assistance of CDA staff will explore opportunities to attract new businesses into the city. Updates to the EDA may include maintaining a list and periodic reports of commercial and industrial projects that are in the planning process, under construction and recently completed. Action Step: City staff will showcase more economic development stories and business updates on the EDA website the CDA’s website as well as in the City’s Newsletter. Deliverables: Staff will explore options to update the EDA’s web presence including, considerations for a potential web platform, adding an inventory of available land and buildings, listing available business resources and developing a digital marketing plan and materials Draft 8/27/2021 3 {digital rollout} for business recruitment, expansions and retention. This will begin in the first quarter of 2022 and will be ongoing. Recommendations will be provided to the EDA members on a regular basis for discussion and input. 4. Develop and maintain sense of place and create new positive community perception Action Step: The EDA will explore opportunities to develop and maintain a sense of place. Action Step: A community asset and resources list will begin to be developed in 2021 and will be maintained on an ongoing basis. Action Step: City staff with the assistance of CDA staff will meet with interested property owners, site selectors, commercial realtors, developers on an ongoing basis to promote development opportunities. Deliverables: Staff will attend events attended by commercial realtors, developers and site selectors. This will begin in the second quarter of 2021 and will be ongoing. Draft 8/27/2021 4 Attachment A 2040 Lake Elmo Comprehensive Plan Map Strengths, Weaknesses, Opportunities, Threats Group Discussion Draft 8/27/2021 5 Draft 8/27/2021 6 Strengths, Weaknesses, Opportunity, Threats Discussion Lake Elmo EDA July 21, 2021 Strengths Opportunities Available land (zoned, open, transportation) Demand for warehouse and industrial Low tax base Shift in workplace/telecommuting Large residential base (high incomes) Broadband Educated talent pool Downtown Central geographic location Partner with County Highway 36 & I-94 Survey small businesses Interest in development Airport Flexible zoning Neighboring communities Quality of life Imation (4 Front) Excellent schools Recreation opportunities Truck/trailer parking Weaknesses Threats Infrastructure availability Competition neighbor communities Neighboring communities New workforce (post pandemic) Perception (not business friendly) Social unrest Small city (talented city staff) Economic future Conflicting goals Wisconsin Clean energy Perception of the past Economic incentives Resources for businesses Data on talent availability Unknowns (Met Council) Education/training Transit Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 Terms Definitions and Sources for Summary Data on Fiscal Disparities Program (FD) in the Metropolitan Area Fiscal disparities Metro area program shares tax base among local taxing jurisdictions in seven-county metropolitan area Fiscal disparities data for taxes payable in 2021 from Minnesota Department of Revenue, Property Tax Division Tax base Net tax capacity (tax base) is property value subject to taxes (taxable market value multiplied by class rate for type of property) Local taxing jurisdictions Cities, townships, counties, school districts and special taxing districts (data shown for cities, townships and counties) Contribution tax base 40% of growth in commercial-industrial (CI) net tax capacity since 1971 contributed to shared pool of areawide tax base Distribution tax base Amount of net tax capacity redistributed from shared pool of areawide tax base Distribution formula for a community based on population and market value of all taxable property compared to metro average Net change tax base Distribution tax base minus contribution tax base CI tax base Taxable net tax capacity for commercial-industrial (CI) property includes: commercial, industrial, public utility, railroad, taxable personal property and other property (Minnesota Department of Revenue and Minn. Stat. § 273.13) Data from Minnesota Department of Revenue, Abstract of Assessment 2020 CI tax base with FD CI tax base plus net change tax base Tax Increment Financing (TIF) retained captured value (after contributions to FD shared pool from TIF districts and adjustments) Data from Minnesota Department of Revenue, Abstract of Assessment 2020 Total fully taxable net tax capacity for real and personal property Data from Minnesota Department of Revenue, Abstract of Assessment 2020 Distribution levy Local taxing jurisdiction's tax revenue shared through FD (distribution tax base multiplied by jurisdiction's tax rate for prior year) Distribution levies shown for cities and townships (excludes counties, school districts and special taxing districts) Data for taxes payable in 2021 from Minnesota Department of Revenue Household Household estimates as of April 1, 2019, from Metropolitan Council Population Population estimates as of April 1, 2019, from Metropolitan Council Information identifies areas not in FD program and areas outside Metropolitan Council's jurisdiction New Prague, Northfield, MSP Airport and St. Paul Airport excluded (Minn. Stat. § 473F.02, Subd. 2); Fort Snelling excluded Birchwood, St. Mary's Point, Sunfish Lake and Woodland ineligible because their zoning & planning policies exclude most CI development for reasons other than preserving agricultural uses (Minn. Stat. § 473F.02, Subd. 8) Community designations Community designations from Thrive MSP 2040, adopted by Metropolitan Council May 2014 C means city; T means township; U means unorganized territory; O means other Tax Increment Financing Total taxable tax base City or township Geographic coverage Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Contribution Distribution Net Change Net Change Net Change Total County, or Tax Base Tax Base Tax Base Per Household Per Capita Community Designation Payable 2021 Payable 2021 Payable 2021 Anoka Andover 1,348,420 5,475,223 4,126,803 389 126 Anoka Anoka 2,440,934 3,968,182 1,527,248 202 82 Anoka Bethel 46,584 131,826 85,242 451 166 Anoka Blaine (combined)9,609,668 11,465,077 1,855,409 75 27 Anoka Centerville 246,377 667,142 420,765 303 104 Anoka Circle Pines 130,292 1,009,015 878,723 435 174 Anoka Columbia Heights 732,481 4,995,988 4,263,507 502 202 Anoka Columbus 632,120 460,299 -171,821 -116 -42 Anoka Coon Rapids 7,880,012 12,972,846 5,092,834 209 80 Anoka East Bethel 490,344 2,226,185 1,735,841 404 142 Anoka Fridley 7,139,274 5,659,925 -1,479,349 -126 -50 Anoka Ham Lake 1,234,354 2,469,152 1,234,798 219 74 Anoka Hilltop 68,250 429,126 360,876 916 455 Anoka Lexington 154,555 653,886 499,331 559 212 Anoka Lino Lakes 1,537,086 3,692,294 2,155,208 312 98 Anoka Linwood Twp.53,226 918,704 865,478 436 159 Anoka Nowthen 202,321 653,304 450,983 295 95 Anoka Oak Grove 220,231 1,389,636 1,169,405 384 132 Anoka Ramsey 2,665,991 4,875,961 2,209,970 234 81 Anoka St. Francis 315,965 1,853,576 1,537,611 554 191 Anoka Spring Lake Park (combined)726,992 1,334,574 607,582 210 91 Carver Benton Twp.92,145 51,419 -40,726 -138 -52 Carver Camden Twp.23,405 76,037 52,632 153 55 Carver Carver 230,193 807,271 577,078 365 116 Carver Chanhassen (combined)4,921,860 2,660,846 -2,261,014 -237 -86 Carver Chaska 3,959,882 4,521,560 561,678 55 20 Carver Cologne 104,524 341,437 236,913 352 123 Carver Dahlgren Twp.142,903 99,634 -43,269 -87 -33 Carver Hamburg 16,759 157,172 140,413 662 264 Carver Hancock Twp.4,972 20,102 15,130 121 45 Carver Hollywood Twp.48,632 77,348 28,716 76 29 Carver Laketown Twp.90,127 239,180 149,053 231 69 Carver Mayer 102,854 500,502 397,648 513 168 Carver New Germany 27,322 116,677 89,355 491 192 Carver Norwood Young America 486,421 935,309 448,888 294 114 Carver San Francisco Twp.6,955 71,230 64,275 207 74 Carver Victoria 333,686 1,145,503 811,817 234 77 Carver Waconia 1,622,770 2,108,197 485,427 101 37 Carver Waconia Twp.97,759 88,855 -8,904 -21 -8 Carver Watertown 173,833 1,050,530 876,697 522 192 Carver Watertown Twp.141,486 99,489 -41,997 -86 -33 Carver Young America Twp.105,295 46,030 -59,265 -225 -84 Dakota Apple Valley 4,668,787 8,733,292 4,064,505 194 75 Dakota Burnsville 12,301,173 10,477,329 -1,823,844 -72 -29 Metro Area Fiscal Disparities (FD) Program - Taxes Payable 2021 Metro Area Fiscal Disparities Program Summary Data 2021 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Anoka Andover Anoka Anoka Anoka Bethel Anoka Blaine (combined) Anoka Centerville Anoka Circle Pines Anoka Columbia Heights Anoka Columbus Anoka Coon Rapids Anoka East Bethel Anoka Fridley Anoka Ham Lake Anoka Hilltop Anoka Lexington Anoka Lino Lakes Anoka Linwood Twp. Anoka Nowthen Anoka Oak Grove Anoka Ramsey Anoka St. Francis Anoka Spring Lake Park (combined) Carver Benton Twp. Carver Camden Twp. Carver Carver Carver Chanhassen (combined) Carver Chaska Carver Cologne Carver Dahlgren Twp. Carver Hamburg Carver Hancock Twp. Carver Hollywood Twp. Carver Laketown Twp. Carver Mayer Carver New Germany Carver Norwood Young America Carver San Francisco Twp. Carver Victoria Carver Waconia Carver Waconia Twp. Carver Watertown Carver Watertown Twp. Carver Young America Twp. Dakota Apple Valley Dakota Burnsville Metro Area Fiscal Disparities Program Summary Data 2021 Taxable Taxable Taxable CI CI CI Tax Base Tax Base Tax Base Tax Base Tax Base Tax Base Commercial Industrial Com.-Ind. (CI)% of Total Per Per Property Property Property Tax Base Household Capita 2,466,042 215,004 3,611,529 10%341 110 2,899,269 3,969,385 7,141,283 34%945 381 29,525 49,462 148,483 32%786 289 15,395,431 11,382,371 28,700,727 30%1,163 422 253,194 406,867 723,100 15%521 179 272,958 39,546 351,564 7%174 69 1,839,686 290,304 2,416,832 14%285 114 1,701,997 54,180 1,926,735 26%1,303 474 14,893,005 4,878,577 21,467,672 30%880 336 1,129,181 142,587 1,576,363 12%367 129 6,571,615 13,011,274 20,945,986 49%1,780 713 1,381,861 1,588,098 3,466,883 15%613 208 390,671 0 397,561 65%1,009 501 436,724 14,816 474,266 21%531 201 2,050,585 1,630,544 4,242,320 16%614 193 41,936 0 169,015 3%85 31 186,523 220,047 574,632 9%376 120 242,608 105,538 671,375 6%221 76 2,522,473 3,942,070 7,246,091 22%769 266 498,705 211,323 901,870 13%325 112 1,391,535 808,799 2,282,842 30%790 341 29,252 90,047 390,635 19%1,324 501 13,853 780 139,580 7%406 146 454,292 358,966 1,012,024 15%641 203 6,954,829 5,279,282 13,242,762 23%1,388 504 5,314,344 4,702,976 10,571,658 28%1,034 382 178,959 42,451 277,939 13%413 144 120,323 95,493 726,808 21%1,462 547 34,275 1,397 46,314 13%218 87 4,726 0 14,978 2%120 45 69,886 24,327 170,475 9%453 170 44,428 2,373 227,653 6%353 105 152,774 42,148 254,347 12%328 107 60,040 1,994 72,218 19%397 155 534,494 581,148 1,222,319 32%799 311 9,107 4,100 22,575 1%73 26 466,818 45,577 898,360 5%259 85 3,181,607 862,354 4,398,683 24%918 331 52,640 20,527 279,399 10%659 237 278,773 127,130 474,525 12%282 104 46,349 10,142 449,237 16%922 357 35,975 11,833 278,900 16%1,060 397 9,251,401 2,234,474 12,669,777 18%605 233 16,695,100 12,909,086 34,569,618 37%1,361 551 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Anoka Andover Anoka Anoka Anoka Bethel Anoka Blaine (combined) Anoka Centerville Anoka Circle Pines Anoka Columbia Heights Anoka Columbus Anoka Coon Rapids Anoka East Bethel Anoka Fridley Anoka Ham Lake Anoka Hilltop Anoka Lexington Anoka Lino Lakes Anoka Linwood Twp. Anoka Nowthen Anoka Oak Grove Anoka Ramsey Anoka St. Francis Anoka Spring Lake Park (combined) Carver Benton Twp. Carver Camden Twp. Carver Carver Carver Chanhassen (combined) Carver Chaska Carver Cologne Carver Dahlgren Twp. Carver Hamburg Carver Hancock Twp. Carver Hollywood Twp. Carver Laketown Twp. Carver Mayer Carver New Germany Carver Norwood Young America Carver San Francisco Twp. Carver Victoria Carver Waconia Carver Waconia Twp. Carver Watertown Carver Watertown Twp. Carver Young America Twp. Dakota Apple Valley Dakota Burnsville Metro Area Fiscal Disparities Program Summary Data 2021 Taxable CI Tax Base CI Tax Base Tax Increment Total Taxable Tax Base Per Household Per Capita Financing Tax Base CI Property With With Captured Real & Personal With FD FD FD Value Property 7,738,332 730 235 119,269 37,554,025 8,668,531 1,148 463 950,033 21,291,284 233,725 1,237 455 0 468,689 30,556,136 1,238 450 829,830 94,343,356 1,143,865 824 282 0 4,950,221 1,230,287 609 243 174,628 4,816,003 6,680,339 787 316 1,039,125 17,146,497 1,754,914 1,187 432 82,145 7,462,169 26,560,506 1,088 415 656,446 72,159,176 3,312,204 771 272 296,690 13,522,310 19,466,637 1,654 663 4,140,463 42,677,530 4,701,681 832 281 0 22,608,149 758,437 1,925 955 0 608,418 973,597 1,090 413 187,323 2,210,426 6,397,528 926 291 780,251 26,812,400 1,034,493 521 190 0 5,980,668 1,025,615 671 215 0 6,447,776 1,840,780 605 208 33,661 10,576,809 9,456,061 1,003 347 1,925,962 33,054,559 2,439,481 879 303 2,896 6,877,822 2,890,424 1,000 431 200,302 7,580,878 349,909 1,186 449 0 2,005,355 192,212 559 201 0 1,868,666 1,589,102 1,006 318 340,744 6,812,053 10,981,748 1,151 418 295,031 57,316,828 11,133,336 1,089 402 1,213,961 38,333,855 514,852 765 267 9,111 2,133,031 683,539 1,375 515 0 3,459,267 186,727 881 351 0 351,849 30,108 241 90 0 755,596 199,191 530 199 0 1,991,645 376,706 584 174 0 3,718,902 651,995 841 275 0 2,165,665 161,573 888 347 0 387,950 1,671,207 1,093 425 236,247 3,868,731 86,850 279 100 0 1,763,493 1,710,177 493 162 504,809 19,202,185 4,884,110 1,020 368 176,817 18,338,373 270,495 638 229 0 2,914,365 1,351,222 804 297 8,797 3,835,035 407,240 836 323 0 2,882,746 219,635 835 313 0 1,786,316 16,734,282 799 308 2,937,308 70,863,890 32,745,774 1,289 522 147,883 93,458,187 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Anoka Andover Anoka Anoka Anoka Bethel Anoka Blaine (combined) Anoka Centerville Anoka Circle Pines Anoka Columbia Heights Anoka Columbus Anoka Coon Rapids Anoka East Bethel Anoka Fridley Anoka Ham Lake Anoka Hilltop Anoka Lexington Anoka Lino Lakes Anoka Linwood Twp. Anoka Nowthen Anoka Oak Grove Anoka Ramsey Anoka St. Francis Anoka Spring Lake Park (combined) Carver Benton Twp. Carver Camden Twp. Carver Carver Carver Chanhassen (combined) Carver Chaska Carver Cologne Carver Dahlgren Twp. Carver Hamburg Carver Hancock Twp. Carver Hollywood Twp. Carver Laketown Twp. Carver Mayer Carver New Germany Carver Norwood Young America Carver San Francisco Twp. Carver Victoria Carver Waconia Carver Waconia Twp. Carver Watertown Carver Watertown Twp. Carver Young America Twp. Dakota Apple Valley Dakota Burnsville Metro Area Fiscal Disparities Program Summary Data 2021 Distribution Total Total Excluded Outside Levy Estimated Estimated from Met Council Households Population FD Jurisdiction Payable 2021 2019 2019 (Yes/No)(Yes/No) 1,957,824 10,605 32,882 N N 1,413,427 7,553 18,728 N N 62,066 189 514 N N 4,109,313 24,687 67,939 N N 353,318 1,388 4,050 N N 532,124 2,020 5,061 N N 3,212,720 8,489 21,124 N N 216,906 1,479 4,067 N N 5,214,954 24,406 63,968 N N 923,132 4,296 12,184 N N 2,561,285 11,768 29,374 N N 553,732 5,651 16,706 N N 412,291 394 794 N N 371,120 893 2,356 N N 1,472,118 6,908 21,995 N N 238,533 1,987 5,451 N N 158,674 1,529 4,771 N N 298,160 3,042 8,868 N N 1,930,490 9,428 27,263 N N 936,853 2,776 8,045 N N 647,157 2,891 6,699 N N 7,293 295 780 N N 13,379 344 955 N N 399,218 1,579 4,990 N N 563,364 9,538 26,278 N N 1,285,247 10,228 27,692 N N 217,534 673 1,929 N N 11,933 497 1,328 N N 165,187 212 532 N N 2,645 125 334 N N 13,085 376 1,003 N N 33,821 645 2,166 N N 246,988 775 2,374 N N 111,056 182 465 N N 689,836 1,529 3,930 N N 13,194 311 865 N N 353,891 3,467 10,585 N N 984,801 4,789 13,277 N N 10,454 424 1,179 N N 574,106 1,680 4,555 N N 13,815 487 1,260 N N 7,534 263 702 N N 3,386,945 20,940 54,400 N N 4,520,758 25,405 62,785 N N Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Anoka Andover Anoka Anoka Anoka Bethel Anoka Blaine (combined) Anoka Centerville Anoka Circle Pines Anoka Columbia Heights Anoka Columbus Anoka Coon Rapids Anoka East Bethel Anoka Fridley Anoka Ham Lake Anoka Hilltop Anoka Lexington Anoka Lino Lakes Anoka Linwood Twp. Anoka Nowthen Anoka Oak Grove Anoka Ramsey Anoka St. Francis Anoka Spring Lake Park (combined) Carver Benton Twp. Carver Camden Twp. Carver Carver Carver Chanhassen (combined) Carver Chaska Carver Cologne Carver Dahlgren Twp. Carver Hamburg Carver Hancock Twp. Carver Hollywood Twp. Carver Laketown Twp. Carver Mayer Carver New Germany Carver Norwood Young America Carver San Francisco Twp. Carver Victoria Carver Waconia Carver Waconia Twp. Carver Watertown Carver Watertown Twp. Carver Young America Twp. Dakota Apple Valley Dakota Burnsville Metro Area Fiscal Disparities Program Summary Data 2021 Community Community City or Designation Designation Township Code Thrive MSP 2040 36 Emerging Suburban Edge C 25 Suburban C 41 Rural Centers C 35 Suburban Edge C 36 Emerging Suburban Edge C 25 Suburban C 23 Urban Center C 51 Diversified Rural C 25 Suburban C 41 Rural Centers C 24 Urban C 52 Rural Residential C 23 Urban Center C 25 Suburban C 36 Emerging Suburban Edge C 51 Diversified Rural T 52 Rural Residential C 52 Rural Residential C 36 Emerging Suburban Edge C 41 Rural Centers C 25 Suburban C 53 Agricultural T 53 Agricultural T 36 Emerging Suburban Edge C 36 Emerging Suburban Edge C 35 Suburban Edge C 41 Rural Centers C 53 Agricultural T 41 Rural Centers C 53 Agricultural T 53 Agricultural T 51 Diversified Rural T 41 Rural Centers C 41 Rural Centers C 41 Rural Centers C 53 Agricultural T 36 Emerging Suburban Edge C 36 Emerging Suburban Edge C 53 Agricultural T 41 Rural Centers C 53 Agricultural T 53 Agricultural T 25 Suburban C 25 Suburban C Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Contribution Distribution Net Change Net Change Net Change Total County, or Tax Base Tax Base Tax Base Per Household Per Capita Community Designation Payable 2021 Payable 2021 Payable 2021 Metro Area Fiscal Disparities (FD) Program - Taxes Payable 2021 Metro Area Fiscal Disparities Program Summary Data 2021 Dakota Castle Rock Twp.231,076 111,142 -119,934 -238 -86 Dakota Coates 76,093 23,889 -52,204 -768 -309 Dakota Douglas Twp.36,902 44,865 7,963 30 11 Dakota Eagan 17,393,314 9,516,820 -7,876,494 -286 -114 Dakota Empire Twp.301,615 423,737 122,122 119 39 Dakota Eureka Twp.242,695 106,772 -135,923 -258 -94 Dakota Farmington 996,932 4,468,538 3,471,606 438 150 Dakota Greenvale Twp.44,333 53,896 9,563 35 12 Dakota Hampton 32,356 155,424 123,068 483 172 Dakota Hampton Twp.125,044 52,730 -72,314 -220 -81 Dakota Hastings (combined)1,661,535 4,621,923 2,960,388 324 129 Dakota Inver Grove Heights 4,241,579 5,554,027 1,312,448 92 37 Dakota Lakeville 6,925,362 9,522,500 2,597,138 116 39 Dakota Lilydale 109,370 73,706 -35,664 -60 -38 Dakota Marshan Twp.104,056 82,155 -21,901 -52 -19 Dakota Mendota 59,245 21,850 -37,395 -445 -174 Dakota Mendota Heights 2,882,018 1,099,910 -1,782,108 -373 -152 Dakota Miesville 15,969 13,984 -1,985 -35 -15 Dakota New Trier 3,234 30,735 27,501 671 250 Dakota Nininger Twp.73,508 87,835 14,327 38 16 Dakota Northfield Dakota Randolph 21,554 87,544 65,990 375 143 Dakota Randolph Twp.202,704 57,246 -145,458 -521 -197 Dakota Ravenna Twp.34,268 302,544 268,276 327 112 Dakota Rosemount 2,949,134 3,787,267 838,133 95 33 Dakota Sciota Twp.16,941 33,940 16,999 110 37 Dakota South St. Paul 1,395,045 4,523,162 3,128,117 372 151 Dakota Sunfish Lake Dakota Vermillion 19,141 86,961 67,820 421 154 Dakota Vermillion Twp.125,951 94,682 -31,269 -70 -25 Dakota Waterford Twp.67,970 38,601 -29,369 -149 -58 Dakota West St. Paul 2,052,094 4,398,182 2,346,088 260 111 Hennepin Bloomington 26,834,444 11,010,459 -15,823,985 -414 -175 Hennepin Brooklyn Center 3,804,245 8,694,109 4,889,864 432 149 Hennepin Brooklyn Park 11,359,339 16,603,525 5,244,186 186 64 Hennepin Champlin 1,745,736 4,256,597 2,510,861 285 104 Hennepin Corcoran 516,672 641,505 124,833 59 21 Hennepin Crystal 1,481,700 4,851,635 3,369,935 352 145 Hennepin Dayton 877,718 811,203 -66,515 -29 -11 Hennepin Deephaven 208,598 181,497 -27,101 -19 -7 Hennepin Eden Prairie 17,487,960 7,088,599 -10,399,361 -415 -161 Hennepin Edina 15,151,282 4,049,317 -11,101,965 -485 -208 Hennepin Excelsior 834,308 217,914 -616,394 -484 -240 Hennepin Fort Snelling (unorg.)0 0 0 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Dakota Castle Rock Twp. Dakota Coates Dakota Douglas Twp. Dakota Eagan Dakota Empire Twp. Dakota Eureka Twp. Dakota Farmington Dakota Greenvale Twp. Dakota Hampton Dakota Hampton Twp. Dakota Hastings (combined) Dakota Inver Grove Heights Dakota Lakeville Dakota Lilydale Dakota Marshan Twp. Dakota Mendota Dakota Mendota Heights Dakota Miesville Dakota New Trier Dakota Nininger Twp. Dakota Northfield Dakota Randolph Dakota Randolph Twp. Dakota Ravenna Twp. Dakota Rosemount Dakota Sciota Twp. Dakota South St. Paul Dakota Sunfish Lake Dakota Vermillion Dakota Vermillion Twp. Dakota Waterford Twp. Dakota West St. Paul Hennepin Bloomington Hennepin Brooklyn Center Hennepin Brooklyn Park Hennepin Champlin Hennepin Corcoran Hennepin Crystal Hennepin Dayton Hennepin Deephaven Hennepin Eden Prairie Hennepin Edina Hennepin Excelsior Hennepin Fort Snelling (unorg.) Taxable Taxable Taxable CI CI CI Tax Base Tax Base Tax Base Tax Base Tax Base Tax Base Commercial Industrial Com.-Ind. (CI)% of Total Per Per Property Property Property Tax Base Household Capita 169,665 84,593 619,222 19%1,229 445 65,874 98,634 224,354 62%3,299 1,328 29,973 340 107,231 6%405 144 27,479,904 18,483,422 48,314,269 38%1,755 698 87,469 208,829 929,188 19%908 295 62,160 47,196 971,650 24%1,844 669 1,290,777 862,348 3,221,500 13%406 139 13,693 10,940 259,260 13%936 325 39,281 10,994 93,205 13%366 130 30,275 22,575 340,304 14%1,034 379 3,322,754 894,923 4,784,990 20%524 208 6,061,704 3,054,890 12,327,137 24%866 349 11,120,431 6,730,256 19,465,464 20%866 296 258,534 28,198 330,794 13%560 353 95,315 59,619 271,188 10%647 238 62,119 37,630 222,881 37%2,653 1,037 4,023,883 3,209,109 8,153,742 28%1,707 694 29,807 4,566 47,077 20%841 351 8,304 0 8,852 12%216 80 17,534 8,649 237,906 13%634 257 35,711 69,266 121,631 7%285 106 12,488 20,392 67,651 14%384 146 54,661 289,074 564,988 27%2,025 767 12,719 0 104,094 3%127 43 1,920,972 4,767,675 8,462,154 23%958 336 1,472 16,848 59,468 6%386 130 1,552,155 3,012,571 5,954,043 28%707 287 0 0 40,639 2%220 77 44,675 3,052 54,939 12%341 125 39,289 28,897 352,320 12%786 279 82,100 58,688 207,942 17%1,056 410 4,786,020 945,837 6,098,624 26%675 288 80,049,335 16,113,530 98,676,725 50%2,584 1,093 7,580,045 3,394,787 11,642,243 38%1,029 356 12,706,199 17,905,655 32,122,622 33%1,137 390 2,858,670 1,609,800 4,812,552 17%547 199 425,250 475,330 1,504,429 13%715 251 2,946,338 1,345,815 4,785,040 20%500 206 456,980 1,668,973 2,690,000 23%1,188 426 495,125 0 598,017 4%422 158 29,932,726 15,314,824 47,951,740 34%1,911 743 38,239,131 5,489,120 45,046,115 27%1,968 846 2,223,268 0 2,359,276 31%1,852 919 0 0 150,714 100%529 428 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Dakota Castle Rock Twp. Dakota Coates Dakota Douglas Twp. Dakota Eagan Dakota Empire Twp. Dakota Eureka Twp. Dakota Farmington Dakota Greenvale Twp. Dakota Hampton Dakota Hampton Twp. Dakota Hastings (combined) Dakota Inver Grove Heights Dakota Lakeville Dakota Lilydale Dakota Marshan Twp. Dakota Mendota Dakota Mendota Heights Dakota Miesville Dakota New Trier Dakota Nininger Twp. Dakota Northfield Dakota Randolph Dakota Randolph Twp. Dakota Ravenna Twp. Dakota Rosemount Dakota Sciota Twp. Dakota South St. Paul Dakota Sunfish Lake Dakota Vermillion Dakota Vermillion Twp. Dakota Waterford Twp. Dakota West St. Paul Hennepin Bloomington Hennepin Brooklyn Center Hennepin Brooklyn Park Hennepin Champlin Hennepin Corcoran Hennepin Crystal Hennepin Dayton Hennepin Deephaven Hennepin Eden Prairie Hennepin Edina Hennepin Excelsior Hennepin Fort Snelling (unorg.) Taxable CI Tax Base CI Tax Base Tax Increment Total Taxable Tax Base Per Household Per Capita Financing Tax Base CI Property With With Captured Real & Personal With FD FD FD Value Property 499,288 991 359 0 3,333,425 172,150 2,532 1,019 0 363,608 115,194 435 154 0 1,910,957 40,437,775 1,469 584 4,469,733 126,830,779 1,051,310 1,028 333 0 4,816,063 835,727 1,586 575 0 3,982,788 6,693,106 844 289 106,443 24,135,985 268,823 970 337 0 2,047,495 216,273 848 302 0 691,020 267,990 815 298 0 2,476,903 7,745,378 849 337 49,961 23,845,738 13,639,585 958 386 23,706 50,862,278 22,062,602 982 335 1,098,496 97,225,431 295,130 499 315 320,858 2,543,536 249,287 595 219 0 2,849,430 185,486 2,208 863 0 605,630 6,371,634 1,334 542 176,904 28,958,692 45,092 805 337 0 237,778 36,353 887 330 0 75,928 252,233 673 273 0 1,829,890 121,631 285 106 0 1,696,120 133,641 759 289 0 469,374 419,530 1,504 569 0 2,083,567 372,370 454 156 0 3,642,105 9,300,287 1,052 369 1,298,347 36,781,144 76,467 497 167 0 1,022,003 9,082,160 1,079 437 2,358,104 21,117,009 40,639 220 77 0 2,362,464 122,759 762 280 0 445,520 321,051 717 254 0 2,925,098 178,573 906 352 0 1,228,899 8,444,712 934 398 691,629 23,784,369 82,852,740 2,170 918 4,854,819 196,652,947 16,532,107 1,461 505 4,762,570 30,999,757 37,366,808 1,323 453 1,100,679 98,766,800 7,323,413 832 302 576,104 28,490,619 1,629,262 775 272 0 11,642,690 8,154,975 852 351 288,561 23,708,339 2,623,485 1,158 415 326,831 11,616,961 570,916 403 151 0 16,561,197 37,552,379 1,497 582 2,645,464 141,100,944 33,944,150 1,483 637 8,265,327 164,849,379 1,742,882 1,368 679 224,434 7,713,913 150,714 529 428 0 150,714 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Dakota Castle Rock Twp. Dakota Coates Dakota Douglas Twp. Dakota Eagan Dakota Empire Twp. Dakota Eureka Twp. Dakota Farmington Dakota Greenvale Twp. Dakota Hampton Dakota Hampton Twp. Dakota Hastings (combined) Dakota Inver Grove Heights Dakota Lakeville Dakota Lilydale Dakota Marshan Twp. Dakota Mendota Dakota Mendota Heights Dakota Miesville Dakota New Trier Dakota Nininger Twp. Dakota Northfield Dakota Randolph Dakota Randolph Twp. Dakota Ravenna Twp. Dakota Rosemount Dakota Sciota Twp. Dakota South St. Paul Dakota Sunfish Lake Dakota Vermillion Dakota Vermillion Twp. Dakota Waterford Twp. Dakota West St. Paul Hennepin Bloomington Hennepin Brooklyn Center Hennepin Brooklyn Park Hennepin Champlin Hennepin Corcoran Hennepin Crystal Hennepin Dayton Hennepin Deephaven Hennepin Eden Prairie Hennepin Edina Hennepin Excelsior Hennepin Fort Snelling (unorg.) Distribution Total Total Excluded Outside Levy Estimated Estimated from Met Council Households Population FD Jurisdiction Payable 2021 2019 2019 (Yes/No)(Yes/No) 12,501 504 1,390 N N 4,108 68 169 N N 7,354 265 747 N N 3,355,821 27,523 69,231 N N 123,439 1,023 3,153 N N 21,550 527 1,453 N N 2,277,659 7,926 23,123 N N 8,739 277 798 N N 68,455 255 717 N N 5,950 329 898 N N 2,652,568 9,124 22,965 N N 2,844,400 14,237 35,321 N N 3,296,213 22,468 65,831 N N 19,259 591 936 N N 15,964 419 1,138 N N 6,610 84 215 N N 421,435 4,777 11,747 N N 4,350 56 134 N N 16,188 41 110 N N 12,833 375 924 N N 427 1,148 Y Y 27,878 176 462 N N 5,026 279 737 N N 48,298 820 2,393 N N 1,461,128 8,837 25,202 N N 4,942 154 459 N N 2,752,208 8,417 20,774 N N 185 529 Y N 35,755 161 439 N N 13,945 448 1,265 N N 10,950 197 507 N N 3,083,389 9,037 21,205 N N 4,355,407 38,181 90,271 N N 5,671,428 11,318 32,722 N N 8,112,814 28,251 82,444 N N 1,618,997 8,801 24,231 N N 288,761 2,103 5,986 N N 2,269,837 9,571 23,262 N N 439,177 2,265 6,320 N N 30,530 1,416 3,790 N N 2,233,830 25,086 64,567 N N 1,131,582 22,884 53,268 N N 62,088 1,274 2,566 N N 0 285 352 Y N Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Dakota Castle Rock Twp. Dakota Coates Dakota Douglas Twp. Dakota Eagan Dakota Empire Twp. Dakota Eureka Twp. Dakota Farmington Dakota Greenvale Twp. Dakota Hampton Dakota Hampton Twp. Dakota Hastings (combined) Dakota Inver Grove Heights Dakota Lakeville Dakota Lilydale Dakota Marshan Twp. Dakota Mendota Dakota Mendota Heights Dakota Miesville Dakota New Trier Dakota Nininger Twp. Dakota Northfield Dakota Randolph Dakota Randolph Twp. Dakota Ravenna Twp. Dakota Rosemount Dakota Sciota Twp. Dakota South St. Paul Dakota Sunfish Lake Dakota Vermillion Dakota Vermillion Twp. Dakota Waterford Twp. Dakota West St. Paul Hennepin Bloomington Hennepin Brooklyn Center Hennepin Brooklyn Park Hennepin Champlin Hennepin Corcoran Hennepin Crystal Hennepin Dayton Hennepin Deephaven Hennepin Eden Prairie Hennepin Edina Hennepin Excelsior Hennepin Fort Snelling (unorg.) Community Community City or Designation Designation Township Code Thrive MSP 2040 53 Agricultural T 51 Diversified Rural C 53 Agricultural T 25 Suburban C 53 Agricultural T 53 Agricultural T 36 Emerging Suburban Edge C 53 Agricultural T 41 Rural Centers C 53 Agricultural T 36 Emerging Suburban Edge C 35 Suburban Edge C 35 Suburban Edge C 25 Suburban C 53 Agricultural T 25 Suburban C 25 Suburban C 51 Diversified Rural C 51 Diversified Rural C 53 Agricultural T 60 Non-Council C 51 Diversified Rural C 53 Agricultural T 51 Diversified Rural T 36 Emerging Suburban Edge C 53 Agricultural T 23 Urban Center C 52 Rural Residential C 41 Rural Centers C 53 Agricultural T 53 Agricultural T 23 Urban Center C 24 Urban C 24 Urban C 25 Suburban C 25 Suburban C 36 Emerging Suburban Edge C 24 Urban C 36 Emerging Suburban Edge C 25 Suburban C 25 Suburban C 24 Urban C 25 Suburban C 23 Urban Center U Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Contribution Distribution Net Change Net Change Net Change Total County, or Tax Base Tax Base Tax Base Per Household Per Capita Community Designation Payable 2021 Payable 2021 Payable 2021 Metro Area Fiscal Disparities (FD) Program - Taxes Payable 2021 Metro Area Fiscal Disparities Program Summary Data 2021 Hennepin Golden Valley 7,680,860 2,352,184 -5,328,676 -528 -235 Hennepin Greenfield 311,004 304,729 -6,275 -6 -2 Hennepin Greenwood 131,997 22,869 -109,128 -358 -154 Hennepin Hanover 6,654 118,134 111,480 465 152 Hennepin Hopkins 3,641,129 3,320,122 -321,007 -35 -16 Hennepin Independence 240,156 326,725 86,569 67 23 Hennepin Long Lake 520,324 233,208 -287,116 -382 -157 Hennepin Loretto 103,982 116,531 12,549 46 19 Hennepin Maple Grove 14,056,339 8,644,874 -5,411,465 -207 -79 Hennepin Maple Plain 420,548 325,996 -94,552 -127 -52 Hennepin Medicine Lake 36,301 27,968 -8,333 -50 -21 Hennepin Medina 1,309,121 454,763 -854,358 -358 -126 Hennepin Minneapolis 88,352,397 63,956,743 -24,395,654 -132 -56 Hennepin Mpls.-St. Paul Airport Hennepin Minnetonka 15,706,327 5,413,170 -10,293,157 -430 -190 Hennepin Minnetonka Beach 31,677 14,712 -16,965 -84 -30 Hennepin Minnetrista 224,825 623,588 398,763 146 49 Hennepin Mound 380,984 1,130,208 749,224 180 79 Hennepin New Hope 3,317,874 4,630,371 1,312,497 144 59 Hennepin Orono 604,866 374,939 -229,927 -73 -28 Hennepin Osseo 543,750 501,085 -42,665 -34 -16 Hennepin Plymouth 19,545,059 9,111,873 -10,433,186 -325 -131 Hennepin Richfield 4,686,992 6,789,696 2,102,704 137 57 Hennepin Robbinsdale 653,167 3,187,131 2,533,964 401 172 Hennepin Rockford 86,972 100,800 13,828 76 32 Hennepin Rogers 5,432,967 1,663,193 -3,769,774 -869 -285 Hennepin St. Anthony (combined)784,298 1,349,433 565,135 138 63 Hennepin St. Bonifacius 196,330 411,647 215,317 249 94 Hennepin St. Louis Park 11,668,035 6,039,963 -5,628,072 -237 -113 Hennepin Shorewood 479,578 601,301 121,723 42 15 Hennepin Spring Park 290,936 173,632 -117,304 -123 -68 Hennepin Tonka Bay 119,072 67,879 -51,193 -84 -33 Hennepin Wayzata 3,190,116 181,789 -3,008,327 -1,316 -644 Hennepin Woodland 0 0 0 Ramsey Arden Hills 2,626,682 1,360,649 -1,266,033 -395 -127 Ramsey Falcon Heights 200,353 1,074,564 874,211 403 161 Ramsey Gem Lake 155,270 35,688 -119,582 -676 -256 Ramsey Lauderdale 245,347 498,900 253,553 219 104 Ramsey Little Canada 2,053,903 1,866,103 -187,800 -40 -18 Ramsey Maplewood 7,252,909 7,721,509 468,600 30 11 Ramsey Mounds View 2,396,113 2,821,660 425,547 81 31 Ramsey New Brighton 3,350,488 4,025,282 674,794 71 29 Ramsey North Oaks 343,863 344,059 196 0 0 Ramsey North St. Paul 658,350 2,738,340 2,079,990 432 171 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Hennepin Golden Valley Hennepin Greenfield Hennepin Greenwood Hennepin Hanover Hennepin Hopkins Hennepin Independence Hennepin Long Lake Hennepin Loretto Hennepin Maple Grove Hennepin Maple Plain Hennepin Medicine Lake Hennepin Medina Hennepin Minneapolis Hennepin Mpls.-St. Paul Airport Hennepin Minnetonka Hennepin Minnetonka Beach Hennepin Minnetrista Hennepin Mound Hennepin New Hope Hennepin Orono Hennepin Osseo Hennepin Plymouth Hennepin Richfield Hennepin Robbinsdale Hennepin Rockford Hennepin Rogers Hennepin St. Anthony (combined) Hennepin St. Bonifacius Hennepin St. Louis Park Hennepin Shorewood Hennepin Spring Park Hennepin Tonka Bay Hennepin Wayzata Hennepin Woodland Ramsey Arden Hills Ramsey Falcon Heights Ramsey Gem Lake Ramsey Lauderdale Ramsey Little Canada Ramsey Maplewood Ramsey Mounds View Ramsey New Brighton Ramsey North Oaks Ramsey North St. Paul Taxable Taxable Taxable CI CI CI Tax Base Tax Base Tax Base Tax Base Tax Base Tax Base Commercial Industrial Com.-Ind. (CI)% of Total Per Per Property Property Property Tax Base Household Capita 15,780,400 6,359,802 23,395,424 41%2,318 1,030 202,430 399,505 835,497 14%841 283 258,920 0 378,264 8%1,240 534 5,870 1,185 19,991 2%83 27 6,896,275 3,940,895 11,166,079 37%1,227 571 159,897 185,230 717,916 9%554 190 696,735 775,030 1,573,851 41%2,093 861 154,520 104,350 285,056 33%1,056 429 23,099,416 12,640,734 38,397,663 30%1,471 564 366,730 760,620 1,218,844 44%1,632 669 70,680 0 118,424 10%705 302 1,429,190 1,584,960 3,590,348 16%1,505 529 219,424,928 23,727,002 267,610,909 36%1,445 614 0 0 12,901,000 100% 34,000,560 6,871,674 42,270,573 32%1,768 781 85,410 0 96,846 2%477 174 90,530 104,667 626,715 3%229 77 752,710 255,810 1,183,635 7%284 125 2,199,129 7,206,140 9,818,270 36%1,079 439 1,030,297 288,360 1,841,836 5%583 222 924,905 547,955 1,595,319 41%1,264 588 26,113,525 24,236,665 53,541,828 32%1,669 674 13,078,190 302,730 13,906,758 30%906 376 1,689,580 25,940 2,324,792 16%368 158 45,000 68,560 278,366 55%1,538 653 4,452,764 10,271,653 15,436,231 51%3,557 1,167 1,681,243 842,405 2,741,868 21%669 304 334,900 167,630 541,650 20%627 236 26,583,900 7,393,363 35,744,773 35%1,502 717 824,480 299,340 1,388,910 6%479 175 542,830 165,580 814,533 20%856 470 169,345 44,720 343,624 5%561 223 7,998,492 30,250 8,703,937 28%3,807 1,863 0 0 8,454 0%49 19 4,738,905 2,617,033 7,825,119 42%2,439 782 568,836 51,792 707,782 12%327 130 366,755 101,998 501,363 31%2,833 1,074 246,008 264,672 850,470 28%734 348 2,874,053 2,787,674 5,981,370 38%1,277 565 17,013,569 2,556,729 20,970,259 37%1,327 502 3,987,181 2,393,626 6,581,798 39%1,250 487 3,879,127 5,421,108 9,821,261 30%1,028 419 804,874 0 953,958 6%466 179 1,324,132 489,286 1,961,590 17%407 161 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Hennepin Golden Valley Hennepin Greenfield Hennepin Greenwood Hennepin Hanover Hennepin Hopkins Hennepin Independence Hennepin Long Lake Hennepin Loretto Hennepin Maple Grove Hennepin Maple Plain Hennepin Medicine Lake Hennepin Medina Hennepin Minneapolis Hennepin Mpls.-St. Paul Airport Hennepin Minnetonka Hennepin Minnetonka Beach Hennepin Minnetrista Hennepin Mound Hennepin New Hope Hennepin Orono Hennepin Osseo Hennepin Plymouth Hennepin Richfield Hennepin Robbinsdale Hennepin Rockford Hennepin Rogers Hennepin St. Anthony (combined) Hennepin St. Bonifacius Hennepin St. Louis Park Hennepin Shorewood Hennepin Spring Park Hennepin Tonka Bay Hennepin Wayzata Hennepin Woodland Ramsey Arden Hills Ramsey Falcon Heights Ramsey Gem Lake Ramsey Lauderdale Ramsey Little Canada Ramsey Maplewood Ramsey Mounds View Ramsey New Brighton Ramsey North Oaks Ramsey North St. Paul Taxable CI Tax Base CI Tax Base Tax Increment Total Taxable Tax Base Per Household Per Capita Financing Tax Base CI Property With With Captured Real & Personal With FD FD FD Value Property 18,066,748 1,790 795 1,177,123 56,484,604 829,222 834 281 0 5,764,585 269,136 882 380 0 4,779,197 131,471 548 179 0 906,444 10,845,072 1,192 555 3,042,789 30,152,878 804,485 621 213 0 8,419,554 1,286,735 1,711 704 134,886 3,838,019 297,605 1,102 448 16,274 866,297 32,986,198 1,263 484 1,026,706 125,898,497 1,124,292 1,505 617 0 2,749,108 110,091 655 281 0 1,163,444 2,735,990 1,147 403 492,587 22,115,192 243,215,255 1,313 558 25,577,098 752,544,017 12,901,000 0 12,901,000 31,977,416 1,337 591 3,120,322 132,738,821 79,881 394 143 0 4,710,202 1,025,478 375 126 0 21,148,556 1,932,859 463 205 867,338 16,554,243 11,130,767 1,223 497 1,552,802 27,384,898 1,611,909 511 195 98,738 39,766,746 1,552,654 1,230 573 692,083 3,928,066 43,108,642 1,344 542 2,110,603 167,872,578 16,009,462 1,043 433 4,445,823 46,833,945 4,858,756 769 330 918,795 14,351,046 292,194 1,614 686 0 509,347 11,666,457 2,688 882 605,199 30,396,990 3,307,003 807 367 1,894,881 13,272,617 756,967 876 330 0 2,642,358 30,116,701 1,266 604 11,630,849 102,726,892 1,510,633 521 190 256,177 21,711,140 697,229 732 403 158,800 4,072,653 292,431 478 190 0 7,421,788 5,695,610 2,492 1,219 3,794,597 31,118,164 8,454 49 19 0 3,997,642 6,559,086 2,045 655 362,116 18,707,652 1,581,993 730 290 339,197 5,684,171 381,781 2,157 818 0 1,594,198 1,104,023 953 452 0 2,990,223 5,793,570 1,237 548 723,606 15,735,256 21,438,859 1,356 514 1,490,242 55,959,606 7,007,345 1,331 519 1,687,329 16,777,434 10,496,055 1,099 448 2,783,196 32,613,429 954,154 466 179 0 16,801,374 4,041,580 839 332 628,922 11,636,504 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Hennepin Golden Valley Hennepin Greenfield Hennepin Greenwood Hennepin Hanover Hennepin Hopkins Hennepin Independence Hennepin Long Lake Hennepin Loretto Hennepin Maple Grove Hennepin Maple Plain Hennepin Medicine Lake Hennepin Medina Hennepin Minneapolis Hennepin Mpls.-St. Paul Airport Hennepin Minnetonka Hennepin Minnetonka Beach Hennepin Minnetrista Hennepin Mound Hennepin New Hope Hennepin Orono Hennepin Osseo Hennepin Plymouth Hennepin Richfield Hennepin Robbinsdale Hennepin Rockford Hennepin Rogers Hennepin St. Anthony (combined) Hennepin St. Bonifacius Hennepin St. Louis Park Hennepin Shorewood Hennepin Spring Park Hennepin Tonka Bay Hennepin Wayzata Hennepin Woodland Ramsey Arden Hills Ramsey Falcon Heights Ramsey Gem Lake Ramsey Lauderdale Ramsey Little Canada Ramsey Maplewood Ramsey Mounds View Ramsey New Brighton Ramsey North Oaks Ramsey North St. Paul Distribution Total Total Excluded Outside Levy Estimated Estimated from Met Council Households Population FD Jurisdiction Payable 2021 2019 2019 (Yes/No)(Yes/No) 1,256,066 10,094 22,715 N N 111,802 994 2,956 N N 3,274 305 708 N N 53,029 240 734 N Y 2,300,878 9,101 19,555 N N 129,825 1,295 3,778 N N 85,298 752 1,827 N N 59,899 270 664 N N 2,831,715 26,108 68,101 N N 190,939 747 1,823 N N 13,619 168 392 N N 102,290 2,386 6,788 N N 37,042,466 185,214 435,885 N N Y N 1,981,018 23,912 54,141 N N 3,557 203 557 N N 154,244 2,737 8,108 N N 457,938 4,173 9,447 N N 2,996,822 9,102 22,376 N N 61,910 3,157 8,284 N N 289,326 1,262 2,711 N N 2,350,499 32,075 79,475 N N 3,618,365 15,352 36,993 N N 1,470,638 6,318 14,741 N N 49,063 181 426 N Y 596,404 4,340 13,232 N N 895,565 4,097 9,020 N N 102,834 864 2,291 N N 2,621,223 23,793 49,834 N N 174,425 2,902 7,934 N N 55,625 952 1,732 N N 11,695 612 1,541 N N 38,276 2,286 4,672 N N 0 173 449 Y N 345,797 3,208 10,008 N N 382,921 2,167 5,446 N N 14,735 177 467 N N 146,325 1,159 2,442 N N 480,948 4,684 10,580 N N 3,447,369 15,808 41,738 N N 1,034,849 5,264 13,513 N N 1,499,645 9,553 23,427 N N 40,249 2,048 5,320 N N 1,114,215 4,819 12,161 N N Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Hennepin Golden Valley Hennepin Greenfield Hennepin Greenwood Hennepin Hanover Hennepin Hopkins Hennepin Independence Hennepin Long Lake Hennepin Loretto Hennepin Maple Grove Hennepin Maple Plain Hennepin Medicine Lake Hennepin Medina Hennepin Minneapolis Hennepin Mpls.-St. Paul Airport Hennepin Minnetonka Hennepin Minnetonka Beach Hennepin Minnetrista Hennepin Mound Hennepin New Hope Hennepin Orono Hennepin Osseo Hennepin Plymouth Hennepin Richfield Hennepin Robbinsdale Hennepin Rockford Hennepin Rogers Hennepin St. Anthony (combined) Hennepin St. Bonifacius Hennepin St. Louis Park Hennepin Shorewood Hennepin Spring Park Hennepin Tonka Bay Hennepin Wayzata Hennepin Woodland Ramsey Arden Hills Ramsey Falcon Heights Ramsey Gem Lake Ramsey Lauderdale Ramsey Little Canada Ramsey Maplewood Ramsey Mounds View Ramsey New Brighton Ramsey North Oaks Ramsey North St. Paul Community Community City or Designation Designation Township Code Thrive MSP 2040 24 Urban C 51 Diversified Rural C 25 Suburban C 60 Non-Council C 23 Urban Center C 51 Diversified Rural C 25 Suburban C 25 Suburban C 35 Suburban Edge C 25 Suburban C 25 Suburban C 36 Emerging Suburban Edge C 23 Urban Center C 23 O 25 Suburban C 25 Suburban C 36 Emerging Suburban Edge C 25 Suburban C 24 Urban C 36 Emerging Suburban Edge C 24 Urban C 35 Suburban Edge C 23 Urban Center C 23 Urban Center C 60 Non-Council C 36 Emerging Suburban Edge C 24 Urban C 25 Suburban C 23 Urban Center C 25 Suburban C 25 Suburban C 25 Suburban C 25 Suburban C 25 Suburban C 25 Suburban C 24 Urban C 25 Suburban C 24 Urban C 25 Suburban C 24 Urban C 25 Suburban C 24 Urban C 25 Suburban C 24 Urban C Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Contribution Distribution Net Change Net Change Net Change Total County, or Tax Base Tax Base Tax Base Per Household Per Capita Community Designation Payable 2021 Payable 2021 Payable 2021 Metro Area Fiscal Disparities (FD) Program - Taxes Payable 2021 Metro Area Fiscal Disparities Program Summary Data 2021 Ramsey Roseville 10,927,867 5,196,130 -5,731,737 -369 -156 Ramsey St. Paul 31,898,767 68,597,894 36,699,127 308 116 Ramsey Shoreview 2,781,336 3,577,656 796,320 73 30 Ramsey Vadnais Heights 3,220,250 1,971,418 -1,248,832 -232 -94 Ramsey White Bear Twp.1,445,682 1,497,864 52,182 12 5 Ramsey White Bear Lake (combined)3,426,073 4,299,568 873,495 82 34 Ramsey St. Paul Airport Ramsey State Fair Grounds 5,123 0 -5,123 Scott Belle Plaine 471,818 1,588,176 1,116,358 440 154 Scott Belle Plaine Twp.196,317 53,167 -143,150 -442 -155 Scott Blakeley Twp.110,613 23,598 -87,015 -509 -196 Scott Cedar Lake Twp.191,933 276,616 84,683 83 27 Scott Credit River Twp.135,766 525,119 389,353 217 69 Scott Elko New Market 118,792 921,034 802,242 536 163 Scott Helena Twp.254,012 150,180 -103,832 -174 -56 Scott Jackson Twp.417,277 251,999 -165,278 -324 -107 Scott Jordan 524,966 1,464,944 939,978 425 145 Scott Louisville Twp.442,849 117,114 -325,735 -724 -240 Scott New Market Twp.436,968 327,307 -109,661 -88 -30 Scott New Prague Scott Prior Lake 1,521,377 3,392,372 1,870,995 188 69 Scott St. Lawrence Twp.68,662 37,290 -31,372 -192 -64 Scott Sand Creek Twp.284,519 143,479 -141,040 -244 -85 Scott Savage 4,138,646 5,012,448 873,802 81 27 Scott Shakopee 11,562,163 6,459,475 -5,102,688 -367 -123 Scott Spring Lake Twp.122,411 306,332 183,921 150 52 Washington Afton 285,993 223,157 -62,836 -55 -21 Washington Bayport 263,192 777,846 514,654 515 135 Washington Baytown Twp.49,476 154,987 105,511 152 54 Washington Birchwood Village 0 0 0 Washington Cottage Grove 2,722,112 6,956,336 4,234,224 329 112 Washington Dellwood 126,040 63,655 -62,385 -161 -56 Washington Denmark Twp.221,953 141,731 -80,222 -120 -44 Washington Forest Lake 1,945,136 3,352,605 1,407,469 176 68 Washington Grant 191,907 317,548 125,641 85 31 Washington Grey Cloud Island Twp.25,493 35,833 10,340 84 34 Washington Hugo 1,181,228 2,207,248 1,026,020 173 67 Washington Lake Elmo 1,232,570 1,156,864 -75,706 -19 -7 Washington Lakeland 101,941 229,567 127,626 184 71 Washington Lakeland Shores 15,747 27,385 11,638 99 37 Washington Lake St. Croix Beach 16,269 157,609 141,340 311 135 Washington Landfall 75,322 999,256 923,934 3,080 1,209 Washington Mahtomedi 468,300 961,092 492,792 159 61 Washington Marine on St. Croix 60,778 56,518 -4,260 -14 -6 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Ramsey Roseville Ramsey St. Paul Ramsey Shoreview Ramsey Vadnais Heights Ramsey White Bear Twp. Ramsey White Bear Lake (combined) Ramsey St. Paul Airport Ramsey State Fair Grounds Scott Belle Plaine Scott Belle Plaine Twp. Scott Blakeley Twp. Scott Cedar Lake Twp. Scott Credit River Twp. Scott Elko New Market Scott Helena Twp. Scott Jackson Twp. Scott Jordan Scott Louisville Twp. Scott New Market Twp. Scott New Prague Scott Prior Lake Scott St. Lawrence Twp. Scott Sand Creek Twp. Scott Savage Scott Shakopee Scott Spring Lake Twp. Washington Afton Washington Bayport Washington Baytown Twp. Washington Birchwood Village Washington Cottage Grove Washington Dellwood Washington Denmark Twp. Washington Forest Lake Washington Grant Washington Grey Cloud Island Twp. Washington Hugo Washington Lake Elmo Washington Lakeland Washington Lakeland Shores Washington Lake St. Croix Beach Washington Landfall Washington Mahtomedi Washington Marine on St. Croix Taxable Taxable Taxable CI CI CI Tax Base Tax Base Tax Base Tax Base Tax Base Tax Base Commercial Industrial Com.-Ind. (CI)% of Total Per Per Property Property Property Tax Base Household Capita 23,158,380 9,019,775 33,915,091 47%2,181 926 67,946,692 25,269,641 107,695,662 30%904 341 5,350,312 2,107,750 7,829,674 18%714 293 5,217,982 3,423,682 9,087,394 39%1,691 681 910,790 2,916,476 4,176,272 23%947 369 6,018,475 2,963,473 9,884,343 27%931 384 0 0 553,926 100% 0 0 15,414 100% 719,050 468,938 1,410,027 20%556 194 18,171 0 527,813 20%1,629 571 9,877 39,007 344,014 24%2,012 773 53,608 0 499,192 8%489 161 163,836 61,478 379,602 3%211 67 238,131 14,482 332,310 7%222 68 11,019 61,241 679,058 16%1,137 364 257,266 581,780 1,374,971 52%2,696 892 592,972 710,387 1,580,835 25%714 243 209,274 898,895 1,372,618 36%3,050 1,012 125,440 428,744 1,227,157 16%990 335 475,757 683,970 1,211,155 24%672 252 2,310,013 1,395,797 4,519,885 10%455 167 96,005 52,732 243,343 21%1,493 494 100,428 557,878 955,565 26%1,650 575 4,993,313 6,258,229 12,342,772 27%1,148 383 11,737,087 20,532,566 33,912,542 46%2,440 817 93,962 175,772 379,208 5%310 108 231,784 376,456 821,625 11%721 273 302,454 467,487 938,331 23%938 246 25,288 18,973 306,348 6%441 156 0 0 12,636 1%36 14 3,596,223 3,309,342 8,366,976 19%650 221 284,097 0 338,775 8%873 301 310,525 185,721 673,693 14%1,007 366 4,024,814 939,772 5,412,064 20%676 260 147,275 159,892 577,063 6%389 142 1,191 64,381 88,294 16%718 289 1,276,590 1,771,071 3,559,274 16%601 231 2,559,716 267,472 3,387,317 15%868 305 174,298 73,483 287,999 10%414 160 45,174 0 50,462 7%428 162 28,855 7,864 48,265 4%106 46 181,622 0 202,926 99%676 266 508,948 617,217 1,359,733 10%438 170 77,517 1,700 268,375 15%874 381 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Ramsey Roseville Ramsey St. Paul Ramsey Shoreview Ramsey Vadnais Heights Ramsey White Bear Twp. Ramsey White Bear Lake (combined) Ramsey St. Paul Airport Ramsey State Fair Grounds Scott Belle Plaine Scott Belle Plaine Twp. Scott Blakeley Twp. Scott Cedar Lake Twp. Scott Credit River Twp. Scott Elko New Market Scott Helena Twp. Scott Jackson Twp. Scott Jordan Scott Louisville Twp. Scott New Market Twp. Scott New Prague Scott Prior Lake Scott St. Lawrence Twp. Scott Sand Creek Twp. Scott Savage Scott Shakopee Scott Spring Lake Twp. Washington Afton Washington Bayport Washington Baytown Twp. Washington Birchwood Village Washington Cottage Grove Washington Dellwood Washington Denmark Twp. Washington Forest Lake Washington Grant Washington Grey Cloud Island Twp. Washington Hugo Washington Lake Elmo Washington Lakeland Washington Lakeland Shores Washington Lake St. Croix Beach Washington Landfall Washington Mahtomedi Washington Marine on St. Croix Taxable CI Tax Base CI Tax Base Tax Increment Total Taxable Tax Base Per Household Per Capita Financing Tax Base CI Property With With Captured Real & Personal With FD FD FD Value Property 28,183,354 1,812 769 1,110,285 71,921,573 144,394,789 1,212 457 30,043,589 353,771,578 8,625,994 787 323 1,578,285 42,419,168 7,838,562 1,459 588 142,590 23,049,481 4,228,454 959 374 502,592 18,222,194 10,757,838 1,014 418 609,701 35,996,547 553,926 0 553,926 10,291 0 15,414 2,526,385 996 348 262 6,945,370 384,663 1,187 416 0 2,626,310 256,999 1,503 578 0 1,407,228 583,875 572 189 0 6,096,474 768,955 428 136 0 10,948,512 1,134,552 758 231 0 4,845,992 575,226 964 308 0 4,152,980 1,209,693 2,372 785 0 2,669,821 2,520,813 1,139 388 238,441 6,415,448 1,046,883 2,326 771 0 3,762,097 1,117,496 901 305 0 7,800,108 1,211,155 672 252 0 5,018,399 6,390,880 643 237 835,975 44,054,323 211,971 1,300 430 0 1,185,038 814,525 1,407 490 0 3,634,590 13,216,574 1,230 410 650,482 46,206,274 28,809,854 2,073 694 2,549,243 73,194,490 563,129 460 160 0 7,172,669 758,789 666 252 0 7,773,051 1,452,985 1,453 382 106,528 4,107,777 411,859 593 210 0 4,953,192 12,636 36 14 0 1,752,982 12,601,200 979 333 1,463,781 44,239,565 276,390 712 246 0 4,380,775 593,471 887 323 0 4,761,753 6,819,533 852 328 461,147 27,314,334 702,704 474 173 0 9,634,403 98,634 802 322 0 536,365 4,585,294 775 298 31,234 22,156,356 3,311,611 849 298 0 22,494,149 415,625 598 231 32,728 2,874,798 62,100 526 200 0 696,266 189,605 417 182 0 1,298,823 1,126,860 3,756 1,475 0 204,407 1,852,525 597 231 0 13,474,229 264,115 860 375 0 1,741,868 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Ramsey Roseville Ramsey St. Paul Ramsey Shoreview Ramsey Vadnais Heights Ramsey White Bear Twp. Ramsey White Bear Lake (combined) Ramsey St. Paul Airport Ramsey State Fair Grounds Scott Belle Plaine Scott Belle Plaine Twp. Scott Blakeley Twp. Scott Cedar Lake Twp. Scott Credit River Twp. Scott Elko New Market Scott Helena Twp. Scott Jackson Twp. Scott Jordan Scott Louisville Twp. Scott New Market Twp. Scott New Prague Scott Prior Lake Scott St. Lawrence Twp. Scott Sand Creek Twp. Scott Savage Scott Shakopee Scott Spring Lake Twp. Washington Afton Washington Bayport Washington Baytown Twp. Washington Birchwood Village Washington Cottage Grove Washington Dellwood Washington Denmark Twp. Washington Forest Lake Washington Grant Washington Grey Cloud Island Twp. Washington Hugo Washington Lake Elmo Washington Lakeland Washington Lakeland Shores Washington Lake St. Croix Beach Washington Landfall Washington Mahtomedi Washington Marine on St. Croix Distribution Total Total Excluded Outside Levy Estimated Estimated from Met Council Households Population FD Jurisdiction Payable 2021 2019 2019 (Yes/No)(Yes/No) 2,036,924 15,550 36,644 N N 34,441,416 119,113 315,925 N N 1,167,263 10,966 26,695 N N 484,639 5,374 13,338 N N 325,929 4,411 11,303 N N 886,963 10,613 25,752 N N Y N 0 N 1,321,082 2,537 7,250 N N 8,387 324 925 N N 3,832 171 445 N N 25,373 1,020 3,093 N N 75,432 1,798 5,639 N N 413,650 1,497 4,920 N N 21,074 597 1,866 N N 26,297 510 1,541 N N 1,071,610 2,213 6,497 N N 5,262 450 1,357 N N 46,503 1,240 3,661 N N 1,802 4,806 Y Y 1,102,377 9,933 27,005 N N 7,485 163 493 N N 25,449 579 1,661 N N 2,123,098 10,748 32,245 N N 2,193,946 13,899 41,528 N N 40,618 1,225 3,526 N N 68,722 1,140 3,009 N N 246,140 1,000 3,808 N N 22,146 694 1,963 N N 0 355 874 Y N 2,720,861 12,867 37,795 N N 13,370 388 1,124 N N 22,562 669 1,840 N N 1,352,219 8,003 20,798 N N 41,585 1,484 4,064 N N 8,418 123 306 N N 852,056 5,920 15,388 N N 271,597 3,902 11,105 N N 82,986 695 1,798 N N 6,315 118 311 N N 64,750 455 1,044 N N 511,734 300 764 N N 350,539 3,105 8,021 N N 31,841 307 705 N N Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Ramsey Roseville Ramsey St. Paul Ramsey Shoreview Ramsey Vadnais Heights Ramsey White Bear Twp. Ramsey White Bear Lake (combined) Ramsey St. Paul Airport Ramsey State Fair Grounds Scott Belle Plaine Scott Belle Plaine Twp. Scott Blakeley Twp. Scott Cedar Lake Twp. Scott Credit River Twp. Scott Elko New Market Scott Helena Twp. Scott Jackson Twp. Scott Jordan Scott Louisville Twp. Scott New Market Twp. Scott New Prague Scott Prior Lake Scott St. Lawrence Twp. Scott Sand Creek Twp. Scott Savage Scott Shakopee Scott Spring Lake Twp. Washington Afton Washington Bayport Washington Baytown Twp. Washington Birchwood Village Washington Cottage Grove Washington Dellwood Washington Denmark Twp. Washington Forest Lake Washington Grant Washington Grey Cloud Island Twp. Washington Hugo Washington Lake Elmo Washington Lakeland Washington Lakeland Shores Washington Lake St. Croix Beach Washington Landfall Washington Mahtomedi Washington Marine on St. Croix Community Community City or Designation Designation Township Code Thrive MSP 2040 24 Urban C 23 Urban Center C 25 Suburban C 25 Suburban C 25 Suburban T 25 Suburban C 23 O 24 O 41 Rural Centers C 51 Diversified Rural T 53 Agricultural T 51 Diversified Rural T 51 Diversified Rural T 41 Rural Centers C 51 Diversified Rural T 51 Diversified Rural T 41 Rural Centers C 51 Diversified Rural T 51 Diversified Rural T 60 Non-Council C 36 Emerging Suburban Edge C 51 Diversified Rural T 51 Diversified Rural T 25 Suburban C 35 Suburban Edge C 51 Diversified Rural T 51 Diversified Rural C 25 Suburban C 51 Diversified Rural T 25 Suburban C 35 Suburban Edge C 51 Diversified Rural C 51 Diversified Rural T 36 Emerging Suburban Edge C 51 Diversified Rural C 51 Diversified Rural T 36 Emerging Suburban Edge C 36 Emerging Suburban Edge C 52 Rural Residential C 52 Rural Residential C 52 Rural Residential C 25 Suburban C 25 Suburban C 51 Diversified Rural C Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Contribution Distribution Net Change Net Change Net Change Total County, or Tax Base Tax Base Tax Base Per Household Per Capita Community Designation Payable 2021 Payable 2021 Payable 2021 Metro Area Fiscal Disparities (FD) Program - Taxes Payable 2021 Metro Area Fiscal Disparities Program Summary Data 2021 Washington May Twp.124,760 183,100 58,340 55 21 Washington Newport 663,770 678,066 14,296 10 4 Washington Oakdale 3,880,471 5,058,769 1,178,298 104 42 Washington Oak Park Heights 2,797,600 572,751 -2,224,849 -989 -454 Washington Pine Springs 8,176 49,671 41,495 280 100 Washington St. Marys Point 0 0 0 Washington St. Paul Park 394,490 1,347,102 952,612 460 170 Washington Scandia 164,943 393,730 228,787 149 56 Washington Stillwater 2,551,147 2,749,847 198,700 26 10 Washington Stillwater Twp.25,794 145,518 119,724 168 63 Washington West Lakeland Twp.127,222 415,580 288,358 221 69 Washington Willernie 38,456 100,945 62,489 273 118 Washington Woodbury 11,058,774 9,510,119 -1,548,655 -58 -22 County Anoka 37,477,299 67,263,903 29,786,604 225 82 Carver 12,093,888 15,214,328 3,120,440 81 29 Dakota 59,394,472 68,686,605 9,292,133 56 22 Hennepin 265,320,907 180,425,840 -84,895,067 -162 -66 Ramsey 73,711,810 108,151,966 34,440,156 159 62 Scott 20,999,089 21,050,650 51,561 1 0 Washington 30,885,957 39,090,130 8,204,173 84 31 Urban Center 145,148,357 166,238,007 21,089,650 55 23 Urban 90,041,934 65,031,309 -25,010,625 -148 -61 Suburban 134,653,111 120,938,071 -13,715,040 -45 -18 Suburban Edge 83,680,938 71,745,841 -11,935,097 -65 -24 Emerging Suburban Edge 33,754,954 50,335,547 16,580,593 138 49 Rural Centers 2,931,679 11,529,753 8,598,074 453 158 Rural areas 9,578,823 13,845,960 4,267,137 96 33 Outside Council jurisdiction 93,626 218,934 125,308 298 108 County Anoka 37,477,299 67,263,903 29,786,604 225 82 Carver 12,093,888 15,214,328 3,120,440 81 29 Dakota 59,394,472 68,686,605 9,292,133 56 21 Hennepin 265,320,907 180,425,840 -84,895,067 -161 -66 Ramsey 73,711,810 108,151,966 34,440,156 159 62 Scott 20,999,089 21,050,650 51,561 1 0 Washington 30,885,957 39,090,130 8,204,173 84 31 Urban Center 145,148,357 166,238,007 21,089,650 55 23 Urban 90,041,934 65,031,309 -25,010,625 -148 -61 Suburban 134,653,111 120,938,071 -13,715,040 -45 -18 Total in Seven-County Metro Area Community Designation Total in Fiscal Disparities Program Community Designation Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Washington May Twp. Washington Newport Washington Oakdale Washington Oak Park Heights Washington Pine Springs Washington St. Marys Point Washington St. Paul Park Washington Scandia Washington Stillwater Washington Stillwater Twp. Washington West Lakeland Twp. Washington Willernie Washington Woodbury County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Total in Seven-County Metro Area Community Designation Total in Fiscal Disparities Program Community Designation Taxable Taxable Taxable CI CI CI Tax Base Tax Base Tax Base Tax Base Tax Base Tax Base Commercial Industrial Com.-Ind. (CI)% of Total Per Per Property Property Property Tax Base Household Capita 27,753 2,712 688,742 9%650 253 441,759 1,056,058 2,131,838 39%1,438 580 5,896,774 4,006,682 10,617,740 30%938 380 3,181,015 910,026 9,292,835 66%4,130 1,898 0 0 26,966 4%182 65 1,500 0 19,850 2%136 56 197,332 604,298 1,326,291 26%640 236 157,491 128,306 609,227 8%398 150 6,150,113 699,009 7,253,684 24%942 367 10,856 7,568 138,768 3%194 73 105,194 142,375 366,749 5%281 88 81,975 19,848 109,199 19%477 206 25,468,271 3,460,137 30,427,402 25%1,147 425 56,481,744 41,984,788 108,345,135 25%819 299 17,697,774 10,950,045 33,469,557 19%871 312 88,691,356 58,144,305 170,045,334 27%1,026 394 568,352,090 173,996,684 794,955,674 33%1,513 621 145,446,369 63,639,002 231,164,581 32%1,067 414 21,729,452 32,237,926 62,080,912 27%1,269 432 55,644,266 19,298,472 89,857,339 22%920 344 344,188,097 64,908,283 453,316,033 33%1,177 484 202,603,952 73,170,248 289,020,695 39%1,712 703 223,702,273 123,208,535 377,679,573 29%1,245 486 127,906,432 90,049,937 235,711,397 29%1,287 476 43,137,819 38,637,963 95,737,903 18%795 281 4,530,835 2,407,493 8,445,694 16%445 155 7,922,773 7,799,018 29,708,880 12%666 233 50,870 69,745 298,357 21%709 257 56,481,744 41,984,788 108,345,135 25%819 299 17,697,774 10,950,045 33,469,557 19%871 312 88,727,067 58,213,571 170,207,604 27%1,023 393 568,352,090 173,996,684 808,015,842 33%1,537 631 145,446,369 63,639,002 231,718,507 32%1,070 415 22,205,209 32,921,896 63,292,067 27%1,248 426 55,645,766 19,298,472 89,889,825 21%915 342 344,188,097 64,908,283 466,921,673 34%1,211 498 202,603,952 73,170,248 289,020,695 39%1,712 703 223,702,273 123,208,535 377,700,663 29%1,242 486 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Washington May Twp. Washington Newport Washington Oakdale Washington Oak Park Heights Washington Pine Springs Washington St. Marys Point Washington St. Paul Park Washington Scandia Washington Stillwater Washington Stillwater Twp. Washington West Lakeland Twp. Washington Willernie Washington Woodbury County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Total in Seven-County Metro Area Community Designation Total in Fiscal Disparities Program Community Designation Taxable CI Tax Base CI Tax Base Tax Increment Total Taxable Tax Base Per Household Per Capita Financing Tax Base CI Property With With Captured Real & Personal With FD FD FD Value Property 747,082 705 274 0 7,874,569 2,146,134 1,447 584 49,501 5,529,884 11,796,038 1,042 422 1,234,501 35,160,963 7,067,986 3,141 1,443 276,281 14,128,303 68,461 463 166 0 623,344 19,850 136 56 0 881,222 2,278,903 1,099 406 0 5,193,003 838,014 547 207 0 7,988,810 7,452,384 967 377 2,267,760 30,771,900 258,492 362 135 0 4,552,748 655,107 502 158 0 7,773,728 171,688 750 323 0 574,566 28,878,747 1,089 403 160,481 122,315,967 138,131,739 1,044 381 11,419,024 437,901,876 36,589,997 952 341 2,785,517 174,189,936 179,337,467 1,082 415 13,679,372 637,387,528 710,060,607 1,352 555 84,764,378 2,433,417,926 265,604,737 1,226 476 43,896,531 729,820,379 62,132,473 1,270 433 4,274,403 233,117,724 98,061,512 1,004 375 6,083,942 415,740,075 474,405,683 1,231 506 79,747,801 1,363,036,649 264,010,070 1,564 642 34,029,972 746,308,941 363,964,533 1,199 469 33,258,264 1,292,249,111 223,776,300 1,222 452 10,476,807 814,286,017 112,318,496 933 329 8,449,345 546,702,811 17,043,768 898 314 792,444 52,954,432 33,976,017 762 266 148,534 244,621,692 423,665 1,006 365 0 1,415,791 138,131,739 1,044 381 11,419,024 437,901,876 36,589,997 952 341 2,785,517 174,189,936 179,499,737 1,079 414 13,679,372 641,446,112 723,120,775 1,375 565 84,764,378 2,450,467,282 266,158,663 1,228 477 43,896,531 730,374,305 63,343,628 1,249 427 4,274,403 238,136,123 98,093,998 999 373 6,083,942 418,374,279 488,011,323 1,266 521 79,747,801 1,376,642,289 264,010,070 1,564 642 34,029,972 746,308,941 363,985,623 1,197 468 33,258,264 1,297,999,735 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Washington May Twp. Washington Newport Washington Oakdale Washington Oak Park Heights Washington Pine Springs Washington St. Marys Point Washington St. Paul Park Washington Scandia Washington Stillwater Washington Stillwater Twp. Washington West Lakeland Twp. Washington Willernie Washington Woodbury County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Total in Seven-County Metro Area Community Designation Total in Fiscal Disparities Program Community Designation Distribution Total Total Excluded Outside Levy Estimated Estimated from Met Council Households Population FD Jurisdiction Payable 2021 2019 2019 (Yes/No)(Yes/No) 19,300 1,059 2,722 N N 368,425 1,483 3,675 N N 1,902,939 11,325 27,930 N N 287,386 2,250 4,897 N N 4,566 148 413 N N 0 146 357 Y N 521,178 2,073 5,611 N N 123,890 1,531 4,054 N N 1,459,753 7,703 19,767 N N 26,854 714 1,910 N N 43,619 1,304 4,155 N N 46,477 229 531 N N 3,089,778 26,523 71,616 N N 27,557,830 132,301 362,648 5,718,381 38,419 107,179 30,526,283 165,739 431,625 87,958,786 525,280 1,279,180 48,221,314 216,654 558,248 8,511,475 48,904 143,652 14,575,773 97,713 261,517 90,955,594 385,228 936,830 30,423,142 168,816 411,252 46,835,704 303,462 776,392 24,721,972 183,092 495,298 20,148,592 120,408 341,235 6,837,310 18,975 54,351 3,045,436 44,608 127,531 102,092 421 1,160 27,557,830 132,301 362,648 5,718,381 38,419 107,179 30,526,283 166,351 433,302 87,958,786 525,738 1,279,981 48,221,314 216,654 558,248 8,511,475 50,706 148,458 14,575,773 98,214 262,748 90,955,594 385,513 937,182 30,423,142 168,816 411,252 46,835,704 303,990 777,715 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Washington May Twp. Washington Newport Washington Oakdale Washington Oak Park Heights Washington Pine Springs Washington St. Marys Point Washington St. Paul Park Washington Scandia Washington Stillwater Washington Stillwater Twp. Washington West Lakeland Twp. Washington Willernie Washington Woodbury County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction County Anoka Carver Dakota Hennepin Ramsey Scott Washington Urban Center Urban Suburban Total in Seven-County Metro Area Community Designation Total in Fiscal Disparities Program Community Designation Community Community City or Designation Designation Township Code Thrive MSP 2040 51 Diversified Rural T 24 Urban C 25 Suburban C 25 Suburban C 52 Rural Residential C 52 Rural Residential C 36 Emerging Suburban Edge C 51 Diversified Rural C 25 Suburban C 51 Diversified Rural T 52 Rural Residential T 25 Suburban C 35 Suburban Edge C Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Contribution Distribution Net Change Net Change Net Change Total County, or Tax Base Tax Base Tax Base Per Household Per Capita Community Designation Payable 2021 Payable 2021 Payable 2021 Metro Area Fiscal Disparities (FD) Program - Taxes Payable 2021 Metro Area Fiscal Disparities Program Summary Data 2021 Suburban Edge 83,680,938 71,745,841 -11,935,097 -65 -24 Emerging Suburban Edge 33,754,954 50,335,547 16,580,593 138 49 Rural Centers 2,931,679 11,529,753 8,598,074 453 158 Rural areas 9,578,823 13,845,960 4,267,137 95 33 Outside Council jurisdiction 93,626 218,934 125,308 47 18 Total 499,883,422 499,883,422 0 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction Total Taxable Taxable Taxable CI CI CI Tax Base Tax Base Tax Base Tax Base Tax Base Tax Base Commercial Industrial Com.-Ind. (CI)% of Total Per Per Property Property Property Tax Base Household Capita 127,906,432 90,049,937 235,711,397 29%1,287 476 43,137,819 38,637,963 95,737,903 18%795 281 4,530,835 2,407,493 8,445,694 16%445 155 7,924,273 7,799,018 29,769,369 12%662 232 562,338 822,981 1,631,143 20%616 229 954,556,019 401,004,458 1,504,938,537 30%1,225 477 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction Total Taxable CI Tax Base CI Tax Base Tax Increment Total Taxable Tax Base Per Household Per Capita Financing Tax Base CI Property With With Captured Real & Personal With FD FD FD Value Property 223,776,300 1,222 452 10,476,807 814,286,017 112,318,496 933 329 8,449,345 546,702,811 17,043,768 898 314 792,444 52,954,432 34,036,506 757 265 148,534 247,865,378 1,756,451 663 247 0 8,130,310 1,504,938,537 1,225 477 166,903,167 5,090,889,913 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction Total Distribution Total Total Excluded Outside Levy Estimated Estimated from Met Council Households Population FD Jurisdiction Payable 2021 2019 2019 (Yes/No)(Yes/No) 24,721,972 183,092 495,298 20,148,592 120,408 341,235 6,837,310 18,975 54,351 3,045,436 44,939 128,417 102,092 2,650 7,114 223,069,842 1,228,383 3,152,564 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 County or Community, Total County, or Community Designation Metro Area Fiscal Disparities Program Summary Data 2021 Suburban Edge Emerging Suburban Edge Rural Centers Rural areas Outside Council jurisdiction Total Community Community City or Designation Designation Township Code Thrive MSP 2040 Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 Twin Cities Fiscal Disparities Top 20 Net Recipients Taxes Payable 2021 County Community Contribution Distribution Net Change Net Change Net Change Rank Tax Base Tax Base Tax Base Per Per Capita Net Household Chg. Ramsey St. Paul 31,898,767 68,597,894 36,699,127 308 116 1 Hennepin Brooklyn Park 11,359,339 16,603,525 5,244,186 186 64 2 Anoka Coon Rapids 7,880,012 12,972,846 5,092,834 209 80 3 Hennepin Brooklyn Center 3,804,245 8,694,109 4,889,864 432 149 4 Anoka Columbia Heights 732,481 4,995,988 4,263,507 502 202 5 Washington Cottage Grove 2,722,112 6,956,336 4,234,224 329 112 6 Anoka Andover 1,348,420 5,475,223 4,126,803 389 126 7 Dakota Apple Valley 4,668,787 8,733,292 4,064,505 194 75 8 Dakota Farmington 996,932 4,468,538 3,471,606 438 150 9 Hennepin Crystal 1,481,700 4,851,635 3,369,935 352 145 10 Dakota South St. Paul 1,395,045 4,523,162 3,128,117 372 151 11 Dakota Hastings (combined)1,661,535 4,621,923 2,960,388 324 129 12 Dakota Lakeville 6,925,362 9,522,500 2,597,138 116 39 13 Hennepin Robbinsdale 653,167 3,187,131 2,533,964 401 172 14 Hennepin Champlin 1,745,736 4,256,597 2,510,861 285 104 15 Dakota West St. Paul 2,052,094 4,398,182 2,346,088 260 111 16 Anoka Ramsey 2,665,991 4,875,961 2,209,970 234 81 17 Anoka Lino Lakes 1,537,086 3,692,294 2,155,208 312 98 18 Hennepin Richfield 4,686,992 6,789,696 2,102,704 137 57 19 Ramsey North St. Paul 658,350 2,738,340 2,079,990 432 171 20 Notes: Hastings in Washington County combined with Hastings in Dakota County. Sources: Minnesota Department of Revenue, Property Tax Division. Population and household estimates as of April 1, 2019, from Metropolitan Council. Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 Twin Cities Fiscal Disparities Top 20 Net Contributors Taxes Payable 2021 County Community Contribution Distribution Net Change Net Change Net Change Rank Tax Base Tax Base Tax Base Per Per Capita Net Household Chg. Hennepin Minneapolis 88,352,397 63,956,743 -24,395,654 -132 -56 1 Hennepin Bloomington 26,834,444 11,010,459 -15,823,985 -414 -175 2 Hennepin Edina 15,151,282 4,049,317 -11,101,965 -485 -208 3 Hennepin Plymouth 19,545,059 9,111,873 -10,433,186 -325 -131 4 Hennepin Eden Prairie 17,487,960 7,088,599 -10,399,361 -415 -161 5 Hennepin Minnetonka 15,706,327 5,413,170 -10,293,157 -430 -190 6 Dakota Eagan 17,393,314 9,516,820 -7,876,494 -286 -114 7 Ramsey Roseville 10,927,867 5,196,130 -5,731,737 -369 -156 8 Hennepin St. Louis Park 11,668,035 6,039,963 -5,628,072 -237 -113 9 Hennepin Maple Grove 14,056,339 8,644,874 -5,411,465 -207 -79 10 Hennepin Golden Valley 7,680,860 2,352,184 -5,328,676 -528 -235 11 Scott Shakopee 11,562,163 6,459,475 -5,102,688 -367 -123 12 Hennepin Rogers 5,432,967 1,663,193 -3,769,774 -869 -285 13 Hennepin Wayzata 3,190,116 181,789 -3,008,327 -1,316 -644 14 Carver Chanhassen (combined)4,921,860 2,660,846 -2,261,014 -237 -86 15 Washington Oak Park Heights 2,797,600 572,751 -2,224,849 -989 -454 16 Dakota Burnsville 12,301,173 10,477,329 -1,823,844 -72 -29 17 Dakota Mendota Heights 2,882,018 1,099,910 -1,782,108 -373 -152 18 Washington Woodbury 11,058,774 9,510,119 -1,548,655 -58 -22 19 Anoka Fridley 7,139,274 5,659,925 -1,479,349 -126 -50 20 Notes: Chanhassen in Hennepin County combined with Chanhassen in Carver County. Sources: Minnesota Department of Revenue, Property Tax Division. Population and household estimates as of April 1, 2019, from Metropolitan Council. Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 Geographic Areas Cities split between two counties are combined Blaine in Ramsey County included in Anoka County Spring Lake Park in Ramsey County included in Anoka County Chanhassen in Hennepin County included in Carver County Hastings in Washington County included in Dakota County St. Anthony in Ramsey County included in Hennepin County White Bear Lake in Washington County included in Ramsey County Border communities Northfield includes only part in Dakota County Dayton, Hanover and Rockford include only parts in Hennepin County New Prague includes only part in Scott County Most recent changes affecting communities Columbus Township incorporated to become City of Columbus in 2006 Elko and New Market consolidated into City of Elko New Market in 2007 New Scandia Township incorporated to become City of Scandia in 2007 Burns Township became City of Nowthen in 2008 City of Rogers annexed Hassan Township in 2012 Community Designations in Thrive MSP 2040 adopted May 2014 Urban Center 23 (includes Fort Snelling, MSP Airport and St. Paul Airport) Urban 24 (includes State Fair Grounds) Suburban 25 Suburban Edge 35 Emerging Suburban Edge 36 Rural Centers 41 Rural areas include Diversified Rural 51, Rural Residential 52 and Agricultural 53 Outside Metropolitan Council planning authority (jurisdiction) 60 Areas not in fiscal disparities (FD) program New Prague, Northfield, MSP Airport and St. Paul Airport - excluded from FD area by statute (Minn. Stat. § 473F.02, Subd. 2) Fort Snelling - unorganized area also excluded Birchwood, St. Mary's Point, Sunfish Lake and Woodland - ineligible communities (Minn. Stat. § 473F.02, Subd. 8) Metropolitan Council Copy of FD-summary-data-2021 (3)March 2021 e STAFF REPORT DATE: September 30, 2021 REGULAR AGENDA ITEM: Business Subsidy Policy TO: Economic Development Authority Commissioners SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: At the September 14, 2021 council work session, the council received information on TIF (previously forwarded to commissioners) in response to a request from NorthPoint Development to create a TIF (tax Increment Financing) District on the 77 acres they have under contract with the city. The first step in considering TIF would be for the city to adopt a business subsidy policy. At the work session a majority of the council was interested in having the EDA begin work on a business subsidy policy. ISSUE BEFORE COMMITTEE: What criteria should be in the city’s business subsidy policy? PROPOSAL DETAILS/ANALYSIS: Information about business subsidies and TIF is provided in the Handbook for MN Cities from the League of MN Cities. A copy of the full chapter is attached but I would draw your attention to page 3 (Business Subsidies) for this discussion and page 16 (TIF) for later consideration. A business subsidy is defined in state law as a state or local government agency grant, contribution of personal property, real property, infrastructure, or the principal amount of a loan at rates below those commercially available, the reduction or deferral of any tax or fee, guarantee of any payment under a loan, lease, or other obligation or any preferential use of government facilities to a business in an amount greater than $150,000. An authority, city council or EDA, must establish criteria for awarding a business subsidy and a public hearing must be held before those criteria are adopted. In Lake Elmo since the EDA is a recommending body, the City Council will be the final authority. The criteria must set the minimum requirements for any business to be eligible. The criteria must include a policy regarding any wages to be paid for any jobs created. As you will see in the examples, some cities include other criteria in their policies but it must at a minimum set a standard for wages. As we begin to brainstorm what may be in the Lake Elmo Business Subsidy Policy, I’ve gathered a few examples from other communities across the state. Additional policies can be viewed on MN DEED’s website at https://mn.gov/deed/government/business-subsidy/criteria/ As you can see from the sampling of city policies, there are many different approaches to the wage requirement. The chart below provides a summary. City Wage Requirement Arlington $12.25/hour Cottage Grove 200% of state minimum wage Hugo Livable wages point system $7-20/hour Rochester 110% of federal poverty level for family of 4 Roseville 300% of state minimum wage Shakopee $19/hour, 200% of state minimum wage St. Cloud Federal minimum wage Virginia 45.45% of average weekly wage for St. Louis County as published by Federal Bureau of Labor Statistics Woodbury 200% of federal minimum wage Since this policy would be for any business subsidy and the policy is not easy to change, I would recommend the wage be tied to something that updates over time (state or federal minimum wage, federal poverty level, etc.) rather than adopting a specific dollar amount that could become outdated in a few years. Other criteria to consider including in the policy may be the number of jobs required or the amount of increment that is provided for each FTE. Other cities have some of these additional requirements as noted in their policies. The specific benefit approved for NorthPoint would still have to be negotiated, along with the TIF plan adoption. This meeting is just to focus on the business subsidy policy that would apply to any business seeking a subsidy in Lake Elmo. FISCAL IMPACT: TBD on each project, greater than $150,000. OPTIONS: Provide direction to staff on what the wage requirement should be in the policy. Provide direction on any other criteria to include on the policy. Is there a policy we should use as a template and amend to fit Lake Elmo. Once staff gets some of this direction, a policy will be drafted and reviewed by legal prior to coming back to the EDA for further consideration. ATTACHMENT: • Chapter 14: Community Development and Redevelopment • Business Subsidy Policies from other Cities o Cottage Grove o Hugo o Stillwater o Woodbury o Alexandria o Arlington o Rochester o Roseville o St. Cloud o Shakopee o Virginia 145 University Ave. West www.lmc.org 11/2/2020 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2020 All Rights Reserved This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. HANDBOOK FOR MINNESOTA CITIES Chapter 14 Community Development and Redevelopment TABLE OF CONTENTS Community Development and Redevelopment ..........................................................................................................1 Chapter 14 ..................................................................................................................................................................3 Community Development and Redevelopment ..........................................................................................................3 I. Business subsidies or financial assistance .....................................................................................................3 A. Business subsidies ......................................................................................................................................... 3 B. Financial assistance ....................................................................................................................................... 4 II. City development tools ..................................................................................................................................4 A. General city development powers ................................................................................................................. 4 B. Housing and redevelopment authorities ........................................................................................................ 5 1. Elements of an HRA .................................................................................................................................. 5 2. Area of operation for an HRA ................................................................................................................... 6 3. HRA membership ...................................................................................................................................... 6 4. HRA powers .............................................................................................................................................. 6 5. HRA special assessment and levy authority .............................................................................................. 7 6. HRA contracting ........................................................................................................................................ 8 7. HRA financing........................................................................................................................................... 8 8. HRA certifications to state ........................................................................................................................ 9 9. HRA federal certification .......................................................................................................................... 9 C. Economic development authorities ............................................................................................................... 9 1. EDA levies............................................................................................................................................... 10 2. EDA loans ............................................................................................................................................... 10 3. Other EDA powers .................................................................................................................................. 11 D. Port authorities ............................................................................................................................................ 11 E. Local or area redevelopment agencies ........................................................................................................ 12 F. City development districts ........................................................................................................................... 13 G. Municipal industrial development ............................................................................................................... 13 III. Other development strategies ......................................................................................................................14 A. Housing bonds ............................................................................................................................................. 14 B. Industrial parks ............................................................................................................................................ 14 League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 2 C. Industrial revenue bonds.............................................................................................................................. 15 D. Commercial rehabilitation loan program ..................................................................................................... 16 E. Tax increment financing (TIF) .................................................................................................................... 16 F. Property tax abatement ................................................................................................................................ 18 G. Housing trust funds ..................................................................................................................................... 19 IV. State-sponsored development tools .............................................................................................................20 A. Minnesota Housing Finance Agency ........................................................................................................... 20 B. Department of Employment and Economic Development (DEED)............................................................ 21 C. Enterprise Minnesota ................................................................................................................................... 22 D. Corporations ................................................................................................................................................ 23 V. Federal development tools ...........................................................................................................................23 A. Community Development Block Grants ..................................................................................................... 23 B. Rural development grants ............................................................................................................................ 23 VI. How this chapter applies to home rule charter cities ...................................................................................23 145 University Ave. West www.lmc.org 11/2/2020 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2020 All Rights Reserved This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. HANDBOOK FOR MINNESOTA CITIES Chapter 14 Community Development and Redevelopment Learn about the requirements for a city to establish criteria for awarding business subsidies and various development agencies cities may create. Find an overview of state and federally sponsored programs for encouraging development and redevelopment. Most economic development tools can be applied to any size city. These tools are interrelated, and a city may use several for one project. RELEVANT LINKS: I. Business subsidies or financial assistance A. Business subsidies Minn. Stat. § 116J.993, subd. 3. State law defines “business subsidy” or “subsidy.” It is a state or local government agency grant, contribution of personal property, real property, infrastructure, or the principal amount of a loan at rates below those commercially available to the recipient. In addition, a business subsidy is any reduction or deferral of any tax or any fee; any guarantee of any payment under any loan, lease, or other obligation; or any preferential use of government facilities given to a business in an amount greater than $150,000. Minn. Stat. § 116J.994, subd. 5. Prior to awarding a business subsidy (financial assistance of more than $150,000 or as required by law) to any business, a city and any housing and redevelopment authority (HRA), economic development authority (EDA), port authority, or nonprofit created by a local government, must hold a public hearing and adopt criteria for awarding business subsidies. Minnesota Department of Employment and Economic Development (DEED). Minn. Stat. § 116J.994, subd. 11. The criteria must not be adopted on a case-by-case basis and must set the minimum requirements that recipients must meet in order to be eligible. It must include a policy regarding the wages to be paid for any jobs created. Copies of the criteria adopted by cities are found on the Minnesota Department of Employment and Economic Development (DEED) website. The public hearing notice must include a statement that either a resident or a city property owner may file a written complaint with the city if the city does not follow the business subsidy law. Written complaints must be filed within specified timelines. Minn. Stat. § 116J.994, subd. 3. Once the criteria are established, the grantor and the recipient must enter into a subsidy agreement that meets the statutory requirements. The agreement must include an obligation to repay at least part, if not all, of the subsidy if the recipient does not meet its obligations. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 4 Minn. Stat. § 116J.994, subd. 11. Citizens or owners of taxable property may bring a civil action against the city for failure to comply with business subsidy laws. To do so, citizens must file a written complaint with the grantor within 180 days after the approval of the subsidy. Cities should therefore consult closely with the city attorney before awarding a business subsidy. Minn. Stat. § 116J.993, subd. 3. Minn. Stat. § 116J.994, subd. 3. Defining a business subsidy is more complicated than it may first appear, as there are several exceptions to the definition, including instances where a subsidy of less than $150,000 may be a business subsidy. Meanwhile, assistance for redevelopment, pollution control and land cleanup, housing, industrial revenue bonds, utility property tax abatements, and other similar programs may not be defined as a subsidy. Minn. Stat. § 116J.994, subds. 4, 7, 8. Recipients must provide grantors with information on their progress toward the goals outlined in the agreement. The goals for increasing jobs or retaining jobs must result in local job creation and job retention. Grantors must submit the annual Minnesota Business Assistance Form (MBAF) to the Department of Employment and Economic Development (DEED) by April 1 each year for each business subsidy agreement. Local government agencies in cities with a population of 2,500 or more must submit an MBAF, regardless of whether they have awarded business subsidies. Local government agencies in cities with a population of 2,500 or less are exempt from filing the MBAF if they have not awarded a subsidy in the past five years. B. Financial assistance Minn. Stat. § 116J.994, subd. 2. Minn. Stat. § 116J.994, subd. 8. Cities may offer “financial assistance” in the form of a business loan of more than $25,000 or a guarantee of $75,000 or more, but less than the $150,000 required to constitute a business subsidy. If a city offers such financial assistance it must develop criteria and set minimum wage floor levels as prescribed in business subsidy law. Cities granting such financial assistance must submit business assistance reports to DEED within one year of granting the assistance. II. City development tools A. General city development powers Minn. Stat. § 469.041. Cities have authority to aid and cooperate in the planning, construction, or operation of economic development, and housing and redevelopment projects. The following is a partial list of actions cities may take, with or without compensation: RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 5 • Dedicate, sell, convey, or lease any of its interests in any property or grant easements, licenses, or any other rights or privileges to an HRA. • Furnish parks, playgrounds, recreational, community education, water, sewer, and drainage facilities or other works adjacent to or in connection with housing and redevelopment projects. Minn. Stat. § 469.192. A statutory city, home rule charter city, economic development authority, housing and redevelopment authority, or port authority may make a loan to a business, a for-profit or nonprofit organization, or an individual for any purpose the entity is otherwise authorized to carry out under any of the laws cited. Judd Supply Co. v. Merchants & Mfgs. Ins. Co., 448 N.W.2d 895 (Minn. Ct. App. 1989). Private development projects that receive public financial or other assistance will not necessarily become public projects that trigger competitive bidding or other state laws applicable to public works. B. Housing and redevelopment authorities The predominant method of delivering and administering housing and redevelopment programs in Minnesota is through an HRA, which is a legal public agency, accountable to city government. There are more than 230 HRAs in Minnesota. 1. Elements of an HRA Minn. Stat. § 469.003. An HRA is a public corporation with power to undertake certain types of housing and redevelopment or renewal activities. While state legislation conveys authority for housing and redevelopment in each city, it is up to the city council to formally establish an HRA before it can do business and use its powers. Once a council legally establishes an HRA, it may undertake certain types of planning and community development activities on its own without council approval. Minn. Stat. § 469.003, subd. 1. To create a housing and redevelopment authority, the city council must, by resolution, make one of the following findings required by law: • There are substandard, slum, or blighted areas that cannot be redeveloped without governmental assistance. • There is a shortage of affordable, decent, safe, and sanitary dwelling accommodations available to low-income individuals and families. Minn. Stat. § 469.003, subds. 2, 4. The council must pass this resolution after a public hearing. A certified copy of this resolution must be filed with the DEED commissioner. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 6 2. Area of operation for an HRA Minn. Stat. § 469.002, subd. 8. Minn. Stat. § 469.004, subd. 5. The area of operation of a city HRA is the territorial boundaries of that city. Establishment of an active county or multi-county HRA precludes the formation of city HRAs. City housing and redevelopment authorities must petition the county (or multi-county) HRA for authorization to establish a local housing authority, and this petition must be approved by the DEED commissioner. 3. HRA membership Minn. Stat. § 469.003, subds. 5, 6. An HRA consists of up to seven commissioners who are residents of the city. The mayor appoints and the council approves the members who serve five-year, staggered terms. City councilmembers often serve on the HRA. The entire membership of an HRA may consist of councilmembers. 24 C.F.R. 964.400 to 964.430. Any public housing agency that holds a public housing annual contribution contract with HUD or that administers Section 8 tenant-based rental assistance must comply with federal regulations, which require that at least one commissioner must be either 1) a resident of the HRA’s public housing program or 2) a recipient of Section 8 tenant-based assistance. The rule does not apply to state-financed public housing projects or Section 8 project-based assistance. A small public housing agency exception also exists. Minn. Stat. § 469.003, subd. 7. The city clerk must file a certificate of appointment for each commissioner of a city HRA and send a certified copy to the commissioner of DEED. Minn. Stat. § 469.011, subd. 2. Minn. Stat. § 469.011, subd. 4. The HRA shall select a chair and a secretary and shall adopt bylaws and rules of conduct. Each commissioner may receive necessary expenses, including traveling expenses, incurred in the performance of duties. Each commissioner may be paid up to $75 for attending each regular and special meeting of the authority. Commissioners who are elected officials may receive daily payment for a particular day only if they do not receive any other daily payment for public service on that day. Commissioners who are full-time public employees may receive the expenses described in the statute unless the expenses are reimbursed from another source. 4. HRA powers Minn. Stat. § 469.012, subd. 1. An HRA is primarily responsible for the planning and implementation of redevelopment and/or low-rent housing assistance programs within its area of operation. An HRA has all the powers necessary to carry out the state HRA Act, including, but not limited to, the following powers: RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 7 • To sue and be sued. • To employ staff and an executive director. • To undertake projects within its area of operation and to provide for the construction, reconstruction, improvement, extension, alteration, or repair of any project or part of a project. • To sell, buy, own, and lease property by any means necessary, including the power of eminent domain. • To cooperate with and use state and federal financial assistance programs. • To develop rehabilitation and code enforcement techniques. • To issue bonds for any of its corporate purposes backed by the pledge of revenues, grants, or other contributions. • To implement renewal or redevelopment programs using tax increment financing. • To own, hold, improve, lease, sell, or dispose of real or personal property. • To designate substandard, slum, or deteriorating areas needing redevelopment, and unsafe, unsanitary, and overcrowded housing. • To make necessary expenditures to carry out the purposes of the HRA law. • To develop and administer an interest reduction program to assist the financing of the construction, rehabilitation, or purchase of low- or moderate-income housing. 5. HRA special assessment and levy authority Minn. Stat. § 469.033, subd. 6. Minn. Stat. § 275.70 to 275.74. HRA power to levy and collect taxes or special assessments is limited to the power provided in state law. Subject to a resolution of consent from the city council, an HRA may levy a tax upon all taxable property within the city. The council may give a consent that covers a series of years if they so choose or council may pass a resolution authorizing an HRA levy for a set amount of time, for example, the entire term of the bonds secured in part by an HRA levy and in part by a city levy. State law recognizes the distinct nature of HRAs and designates them as “special taxing districts.” The maximum general allowable operational levy of HRAs is 0.0185% of the previous year’s estimated market value of all property in the city. Minn. Stat. § 275.066. The city’s estimated market value is available from the county assessor. An HRA raises its own levy because it is a separate political subdivision and not a “local governmental unit.” Therefore, an HRA levy is not subject to levy limits, but is subject to the 0.0185% estimated market value limit. Levies collected by an HRA must be used only for purposes listed in the HRA Act. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 8 Minn. Stat. § 469.107. Minn. Stat. § 275.066. There is crossover between HRA and EDA (economic development authority) levies that can be confusing. While a city may, at the request of an EDA, levy a tax not more than 0.01813% of the estimated market value, many city EDA-enabling resolutions adopt all the powers of an HRA, and then the EDA/HRA functions as a special taxing district under state law, . Minnesota Department of Employment and Economic Development: The Economic Development Authorities Handbook. If the enabling resolution so allows, the EDA will then function as an HRA and, with consent of the city council, levy the HRA levy, which is not subject to levy limits or city debt limits, but is subject to the 0.0185% of the city’s estimated market value limit in state law. The city attorney may verify the structure and levy authority of each city’s HRA and/or EDA. Minn. Stat. § 469.012, subd. 4. Minn. Stat. § 469.028. While HRAs have the legal authority to “do whatever is necessary and convenient” to implement redevelopment, they are subject to the ordinances and laws of the city. The city council must approve HRA plans before the HRA may begin implementation. 6. HRA contracting Minn. Stat. § 469.015, subds. 1a, 4. All HRA construction work and purchases of equipment, supplies, or materials that involve expenditure of more than $175,000 must be competitively bid. An HRA (and a city) may also use the “best value alternative.” There are limited exceptions to these requirements for emergencies and certain circumstances. 7. HRA financing Minn. Stat. § 469.033. Minn. Stat. § 469.034. Operating funds, capital improvements, and debt retirement expenses for HRA projects may be financed by any one or any combination of the following methods: • Federal grants. • Revenue bonds the HRA or local governing body sells. • General obligation bonds the local governing body sells. • Tax increments from redevelopment projects. • A limited levy for redevelopment projects and planning activities. Minn. Stat. § 469.034, subd. 1. When an HRA issues bonds, the revenue generated must be used for the projects financed, or bond costs must be paid from income generated by designated projects. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 9 The law states that the principal and interest on bonds are payable exclusively from the income and revenues of the project financed with the proceeds of the bonds, or exclusively from the income and revenues of certain designated projects, whether or not they are financed in whole or in part with the proceeds of the bonds. 8. HRA certifications to state The following documents relating to the establishment and activities of local HRAs must be filed with the DEED commissioner: Minn. Stat. § 469.003, subds. 4, 6, 7. Minn. Stat. § 469.013 subd. 2. • Resolution of need. • Certificates of appointment or reappointment of HRA commissioners. • Low-rent public housing project and management plans. Minn. Stat. § 469.013 subd. 2. The following additional documents relating to local HRA activities may also be requested by the DEED commissioner: • Project reports. • Applications for federal assistance. • Contracts with federal agencies. • Redevelopment plans. Minn. Stat. § 469.013. In addition, annual financial reports must go to the state auditor, DEED commissioner, and the city council. 9. HRA federal certification 24 C.F.R 982.51. In order for a local HRA to use federal Department of Housing and Urban Development (HUD) assistance programs, it must submit a transcript of organizational documents to the HUD area office. C. Economic development authorities Minnesota Department of Employment and Economic Development: The Economic Development Authorities Handbook. An economic development authority (EDA) is a legal entity created by a city to facilitate a well-rounded program for business assistance and development projects. Minn. Stat. § 469.091. Minn. Stat. § 469.093. All cities and townships have authority from the Minnesota Legislature to create economic development authorities (EDA). The city may consolidate an EDA with an existing HRA or the city may grant HRA powers to the EDA. The city council may create an EDA by passing an enabling resolution. Before adopting the enabling resolution, the city must first conduct a public hearing. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 10 Minn. Stat. § 469.095. The enabling resolution establishes a board of commissioners for the EDA. The city council can choose to serve as the EDA board of commissioners or create a board composed of community members. The mayor, with approval of the council, appoints the commissioners. The board may consist of three, five or seven members who serve six-year terms. The board is subject to the Open Meeting Law. 1. EDA levies Minn. Stat. § 469.107. As discussed above, an EDA levy differs from an HRA levy. It is not a levy raised by the EDA — it is a levy set by a city at the request of the EDA. Minn. Stat. § 469.107. Minnesota Department of Employment and Economic Development: The Economic Development Authorities Handbook. A city may, at the request of the EDA, levy a tax for the benefit of the EDA in an amount not more than 0.01813% of the taxable market value. The amount levied must be paid by the city treasurer to the treasure of the EDA to be spent by the EDA. Because the EDA levy is part of the city levy, it is not a “special levy” under state law and therefore the EDA levy is part of the city’s overall levy limit. Minnesota Department of Employment and Economic Development, The Economic Development Authorities Handbook. As a result of being part of the city’s overall levy limit, the most common practice to fund an EDA is a direct general fund appropriation out of the city’s general fund. There is no limit to the amount of funding that can be provided to an EDA through this mechanism. Minn. Stat. § 469.091. Alternatively, if the city council’s enabling resolution adopts all of the powers of the HRA for the EDA, the EDA may levy the separate HRA tax levy, which is not calculated in the city’s levy limit. It is still subject to all of the statutory limitation of an HRA, including the levy limit of 0.0185% of the estimated market value. 2. EDA loans Minn. Stat. § 469.192. EDAs are authorized to make loans to businesses, for-profit organizations, nonprofit organizations, or individuals to effectuate the purpose of the EDA. Minn. Stat. § 469.192. Minn. Stat. § 469.102. Loans must be for a purpose the EDA is authorized to carry out under the law. An authorized purpose must deal with or contribute to economic or industrial development. Minn. Stat. § 469.033 subd. 4 Metropolitan Council, City Development Powers One benefit of establishing an EDA is that the EDA can create a pool where each project’s revenue goes into a common fund, improving the security on the pooled bonds, leading to a more favorable interest rate and ultimately a reduced cost of borrowing. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 11 Minn. Stat. § 469.098. Before taking an action or making a decision which could substantially affect an EDA commissioner or employee's financial interests or those of an organization with which the commissioner or an employee is associated, a commissioner or employee of an EDA must comply with specific requirements to disclose the conflict and obtain prior approval. Failure to do so may result in criminal charges. 3. Other EDA powers Minn. Stat. § 469.101, subds 1, 2. Op.Atty.Gen., 469a-16, July 19, 1966. Minn. Stat. § 475.58. Minn. Stat. § 469.102. EDAs can acquire property and facilities, but (in most circumstances) cannot issue obligations (debt) without the approval of the electors. See Minn. Stat. § 475.58 for the list of obligations exempted from this requirement. Otherwise, the city must authorize the issuance of debt in the resolution creating the EDA. Minn. Stat. § 469.101, subds 1.. Minnesota House Research Department, Economic Development TIF Districts EDAs can create economic development districts within the city, but the districts must be contiguous. Economic development districts do not need to meet the blight test and may use tax increment financing. Minnesota House Research Department, Economic Development TIF Districts When an EDA’s enabling resolution includes HRA power, an EDA may undertake a redevelopment project, housing development, or housing project under which a restrictive blight test does not apply. These projects can be used for similar purposes to those of an economic development district under the EDA law. D. Port authorities Minn. Stat. § 469.049. Minn. Stat. § 469.055. The purpose of a port authority is to promote the general welfare of a port district, increase the commercial efficiency of the district, and actively improve business opportunities. Minn. Stat. § 469.053. Minn. Stat. § 469.060 subd. 1. The Minnesota Legislature authorizes cities to create port authorities. A port authority is a governmental subdivision with the right to sue and be sued in its own name. A port authority may issue general obligation bonds in the amount authorized by its city’s council. Minn. Stat. § 469.050. Minn. Stat. § 469.051. Cities establish a port authority by passing an enabling resolution. The port authority may have three commissioners appointed by the city council, or seven commissioners, two of whom must be city council members, with the remaining members appointed by the mayor and approved by the city council. Cities may adopt a different procedure and a different number of commissioners in the enabling law for the port authority. State law governs commissioner pay, vacancies, duties, and port authority bylaws. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 12 Minn. Stat. § 469.051, subd. 2. A port authority shall annually elect a president or chair, vice president or vice chair, treasurer, secretary, and assistant treasurer. A commissioner may not serve as president or chair and vice president or vice chair at the same time. The other offices may be held by one commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Minn. Stat. § 469.051, subds. 4 to 6. The treasurer of a port authority must be bonded to faithfully perform these duties: • Receive and be responsible for port authority money. • Be responsible for the acts of the assistant treasurer, if appointed. • Disburse port authority money by check or electronic procedures. • Keep an account of the source of all receipts, and the nature, purpose, and authority of all disbursements. • File the authority’s detailed financial statement with its secretary at least once a year at times set by the authority. Minn. Stat. § 469.051, subd. 9. The port authority’s annual detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the authority’s credits and assets, and its outstanding liabilities. The authority must examine the statement together with the treasurer’s vouchers. If the authority finds the statement and vouchers correct, it shall approve them by resolution and record the resolution. Minn. Stat. § 469.054 subd. 1. Minn. Stat. § 469.056 subd. 1, 2. Minn. Stat. § 469.054 subd. 3. State law governs many other aspects of port authorities, including but not limited to the use of city property by a port authority, employment, and contracts. The city attorney also acts as the port authority’s attorney. E. Local or area redevelopment agencies Minn. Stat. § 469.109. The purpose of area redevelopment agencies is to create new employment opportunities and promote economic redevelopment of rural areas and of depressed or underdeveloped areas of the state. Minn. Stat. § 469.111. Any municipality or group of municipalities may establish a redevelopment agency in and for the area the municipality or group of municipalities it covers, if: Minn. Stat § 496.109. • The area is rural or there is substantial and persistent unemployment in the area for an extended period of time. • The rate of unemployment, excluding unemployment due to seasonal or temporary factors, is 6% or more and the conditions are not likely to be alleviated without public financial or planning assistance. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 13 Minn. Stat. § 469.110, subd. 11. Rural areas are defined as areas that are not within the boundary of any city having a population of 50,000 or more, and not immediately adjacent to urbanized and urbanizing areas with a population density of more than 100 people per square mile — or areas with an unemployment rate of 6% or more. Minn. Stat. § 469.110 subd. 4. This law defines municipalities as home rule charter or statutory cities, counties, towns, or school districts. Minn. Stat. § 469.111. To establish an area development agency, the governing body of the municipality must first hold a public hearing, and then find by resolution that the area is rural, depressed, or underdeveloped as defined in statute. The resolution must be filed with the commissioner of employment and economic development. Minn. Stat. § 469.111 subd. 5. The board of commissioners shall be appointed by the mayor and all five commissioners must be residents of the area of operation of the local agency. Minn. Stat. § 469.115. An area redevelopment agency has similar powers to an EDA/HRA. F. City development districts Minn. Stat. § 469.124. Any home rule charter or statutory city may designate development districts for areas within the boundaries of the city that are already built up. Development districts are established to provide employment opportunities, improve the tax base, and strengthen the general economy of the state. Within these districts, cities may: Minn. Stat. § 469.126, subd. 2. • Adopt a development program to improve physical facilities, quality of life, and quality of transportation. • Promote pedestrian skyway systems. • Install special lighting systems, street signs and street furniture, landscaping of streets and public property, and snow removal systems. Minn. Stat. § 469.127. The law encourages pedestrian skyway systems, underground pedestrian concourses, people mover systems, and publicly owned parking structures. It exempts these structures from taxation even when they are attached to privately owned buildings. G. Municipal industrial development Minn. Stat. § 469.152. For the purpose of attracting industrial and commercial development and encouraging local governments to prevent economic deterioration, any home rule charter or statutory city or its redevelopment agency has the power to promote industrial development by: RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 14 Minn. Stat. § 469.155. • Acquiring, constructing, and holding lands, buildings, easements, improvements to lands and buildings, capital equipment, and inventory for industrial projects. • Issuing revenue bonds and entering into revenue agreements to finance these activities to promote industrial projects. • Refinancing health care and other facilities. Under the legislation, cities assist industries in starting operations and use generated revenues to repay the costs. This law is the basis for issuing most industrial revenue bonds. Minn. Stat. § 469.153. Projects eligible for assistance include, but are not limited to: • Any revenue-producing enterprises engaged in assembling, fabricating, manufacturing, mixing, processing, storing, warehousing, or distributing any products of agriculture, forestry, mining, or manufacturing. • Any research and development activity in these fields or in the manufacturing, creation, or production of intangible property, including patents, copyrights, formulas, processes, or designs. • Properties designated as a qualified green building and sustainable design project under state law. • Costs related to dewatering activities. Minn. Stat. § 469.155, subd. 14. The law prohibits a city from operating any of these projects as a business or in any manner other than the manner outlined by law. III. Other development strategies A. Housing bonds Minn. Stat. § 462C.01. Minn. Stat. § 462C.04. Minn. Stat. § 462C.07. Cities may develop and administer programs to finance the acquisition or rehabilitation of single and multifamily homes for housing low- and moderate-income persons and families anywhere within its boundaries. Upon approval of the program as described in statute, the city may issue and sell revenue bonds, which shall be payable exclusively from the revenues of the programs. Bonding authority is allocated by state formula. B. Industrial parks An industrial park is a tract of land suitable for industrial use because of location, topography, proper zoning, available utilities, and accessibility to transportation. A single governing body has administrative control of the tract. In some cities, an industrial park may be little more than a tract of unimproved land, while in other cities it may be totally served by city services and have restrictive building requirements. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 15 An industrial park’s purpose is to attract industrial development. Minn. Stat. § 272.02 subd. 39. Property a city holds for later sale for economic development purposes remains tax-exempt for a period not to exceed nine years, or until buildings or other improvements that are constructed after acquisition reach one-half occupancy. For cities located outside of the metropolitan area with populations less than 20,000, the period must not exceed 15 years. Currently, private enterprise creates most new industrial park development by establishing a for-profit community development corporation. A city can cooperate with that corporation through its land use controls and methods of financing public improvements. Many cities have also established industrial parks complete with streets, water, and sewer, despite the possible tax ramifications. The city then sells or leases a portion of the park to a business needing a location for its building. Minn. Stat. § 469.185. Any city that owns property that is not restricted by deed may convey the lands for nominal consideration, to encourage and promote industry, and to provide employment for citizens. A.G. Op. 476-B-2 (Mar. 2, 1961). City of Pipestone v. Madsen, 287 Minn. 357, 178 N.W.2d 594 (1970). This statute has been read narrowly by the Office of the Attorney General. The conveyance must encourage and promote industry and provide employment for citizens. For example, a conveyance of land for an indoor arena was not within the statute; a more direct promotion of industry was necessary, beyond the fact that more potential customers might be in town as a result of athletic contests. However, the courts have upheld the municipal industrial development revenue bond law, discussed below, against the same objection. The city’s attorney can best advise the city concerning the legality of a purchase of land for resale. C. Industrial revenue bonds Minn. Stat. §§ 469.152 to 469.1655. Municipal industrial development laws help cities attract new commercial and industrial development and keep existing businesses in the city. The law authorizes the council to issue revenue bonds and use the proceeds to acquire and construct industrial sites and facilities. The city then leases these facilities to private industry and uses the rental fee proceeds to retire the bonds. Minn. Stat. § 469.156. Minn. Stat. § 469.162. A city may issue industrial revenue bonds, also known as municipal revenue bonds, without public referendum. It cannot pledge the full faith and credit of a community as security for these bonds. Thus, the city may not tax property owners to pay principal and interest on the bonds. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 16 For more information, contact DEED 651.259.7114, 800.657.3858. Main Office: 1st National Bank Building 332 Minnesota Street, Suite E200 Saint Paul, MN 55101- 1351. If a city decides to investigate the use of industrial bond financing, it should contact the Department of Employment and Economic Development. The department provides the city with information, advice, and technical assistance. This assistance is important, due to the adoption of federal and state laws allocating issuance authority among the states and their political subdivisions. The commissioner of Securities must approve the project. D. Commercial rehabilitation loan program Minn. Stat. § 469.184. Cities have authority to carry out programs for the rehabilitation of small and medium-sized commercial buildings. The city must adopt a program ordinance that provides for the adoption of program regulations, including a definition of small and medium-sized commercial buildings. Loans under the program may be for amounts up to $200,000. The city may finance the program through the sale of revenue bonds. E. Tax increment financing (TIF) Minn. Stat. § 469.174 subd. 2. Minnesota House Research Department, How TIF Works: Basic Mechanics Tax increment financing is a method of stimulating economic development in a targeted geographic area. TIF uses the additional property taxes that are paid as a result of the new development to pay for the development costs. Tax increment financing authority is available to most cities. Minn. Stat. § 469.175 subd. 1. For a city to make use of TIF, the city must find that the development would not happen through solely private investment and that the new development will result in a net increase in market value for the site, compared to the likely development that would occur without TIF. Minnesota House Research Department, How TIF Works: Basic Mechanics. When a TIF district is created, the county auditor certifies the current tax capacity of the properties in the district as the district’s “original tax capacity.” As the property in the district increases as a result of the new development, the increases above the original tax capacity are captured, referred to as “captured value.” The taxes paid on the captured value are called “increments.” Unlike property taxes, increments are not used to pay for general costs. Instead, the money is used to repay costs the city incurred in acquiring the property, removing existing structures, or creating infrastructure. Minnesota House Research Department, How TIF Works: Basic Mechanics. The property owner in a TIF district continues to pay the full amount of property taxes. TIF involves only the increased property taxes generated within the district. It does not change the amount of property taxes currently derived from the redevelopment area, nor does it directly affect the amount or rate of general ad valorem taxes the city levies. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 17 The result of a TIF project is an increased tax base that will benefit all local taxing jurisdictions. Additionally, TIF districts usually spur economic development and redevelopment through creating jobs, removing blight, and providing more affordable housing. Minnesota House Research Department, How TIF Works: Basic Mechanics. In Minnesota, TIF is generally used to: • Redevelop areas occupied with substandard buildings. • Build housing for low-income and moderate-income families. • Clean up pollution. • Provide general economic development incentives. • Finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements. (This is not an explicit purpose of TIF, but Minnesota cities frequently use it for this purpose). Minnesota House Research Department, Housing TIF Districts. Special rules apply to TIF districts designed to provide low-income housing. Minn. Stat. § 469.175, subds. 5, 6. A city using TIF must report annually to the state auditor as to the status of the TIF district or districts and publish the report in a newspaper of general circulation in the municipality. The state auditor has established a uniform system of accounting and financial reporting for TIF districts. The city must annually submit to the state auditor a financial report in compliance with these standards. Minn. Stat. § 469.1771, subds. 1, 2b. The state auditor may audit TIF districts. If the state auditor notifies a TIF authority of an alleged violation, a copy of the notice is also forwarded to the county attorney. If no corrective action is brought within one year, the county attorney must notify the state auditor, who then notifies the attorney general. If the attorney general finds a substantial violation, the attorney general will petition the state tax court to suspend the authority’s power to use TIF for a period of up to five years. Minn. Stat. § 469.177, subd. 8. Lake Superior Paper Indus. v. State, 624 N.W.2d 254 (Minn. 2001). Brookfield Trade Center, Inc. v. County of Ramsey, 609 N.W.2d 868 (Minn. 1998). The TIF agreement with the developer is a complex document. Assistance from a financial advisor and the city attorney is necessary in order to anticipate the many potential problems. An agreement can establish a minimum market value for tax increment assessment purposes, as well as provide that the developer pay a certain level of taxes regardless of any classification rate changes or levy decreases. The agreement should be entered into before the assembly and acquisition of the land on which the completed improvements are to be located. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 18 Minn. Stat. § 469.1771 subd. 7. Minnesota House Research Department, The But-For Test. The law imposes a 180-day statute of limitations on actions to challenge the creation or modification of a TIF district. The law is complex, including a “but-for” finding before a city approves a TIF plan and the creation of a TIF district. See Minn. Stat. §§ 469.174- 469.1799. Cities must follow statutory requirements, including but not limited to administrative expenses, plan modifications, reporting requirements, use of increment in pre-1979 districts, excess increments, pooling, decertification, and use of funds outside the district. Minn. Stat. § 469.175. Before a district can be created, the law requires a detailed estimate of the impact of a proposed district on city-provided services, such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, in addition to other complex estimations that must be prepared. State v. Wicklund, 589 N.W.2d 793 (Minn. 1999). Public financing using TIF funding for a privately owned facility does not make public space in the facility a public forum for free speech purposes. Walser Auto Sales, Inc. v. City of Richfield, 635 N.W.2d 391 (Minn. Ct. App. 2001); aff’d, 644 N.W.2d 425 (Minn. 2002). Cities should use extreme care in establishing a TIF district and should follow all procedural requirements; otherwise, a court may find the district was not properly established. In one case, a TIF district was not properly established where minimal effort was made to ensure the thorough inspection of the properties; inaccurate methodology was used to establish the condition of the buildings; and the buildings found structurally substandard were not reasonably distributed throughout the district. Chenoweth v. City of New Brighton, 655 N.W.2d 821 (Minn. Ct. App. 2003). However, in another case involving a properly established TIF district, a warehouse was built next door to the plaintiff’s land, which substantially interfered with the use and enjoyment of that land. The court found that the private development of the adjacent property was not so entwined with government action as to constitute a state action. Therefore, the city’s actions — establishment of a TIF district, entering into a contract with a private developer specifying the size and value of structures to be built, and providing for substantial city assistance to facilitate development — do not rise to the level of a taking and, consequently, did not require reimbursement. Given the complexity of the laws governing the use of TIF, cities or HRAs should not undertake this method of financing community development projects without the advice of an attorney and professional consultants. F. Property tax abatement Minn. Stat. § 469.1813. A city may use this development tool to capture some or all of the taxes it imposes on a parcel of property. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 19 It can apply those captured proceeds to specific, designated uses, so long as the benefits at least equal the costs to the city, and it is in the public interest as defined by the statute. Christopher Virta, Growing Trend: Use of Tax Abatement for Economic Development and Public Facilities The term “abatement” is somewhat misleading, as the phrase is often used to refer to a method of adjusting an individual property owner’s tax burden by adjusting the market value of the property. Instead, in this instance, property tax abatement is an incentive for economic development. When used as a development driver, property tax abatement does not reduce the amount of taxes paid on the property. Instead, the full amount is paid by the taxpayer, and the county auditor refunds the abated portion back to the local government entity that granted the abatement to achieve a specific goal. Minnesota House Research Department, Property Tax Abatements for Economic Development Goals include paying infrastructure costs associated with a development project, or paying debt service on bonds if tax abatement bonds were issued. If the money is to be refunded to the taxpayer, there must be a contract in place that outlines the conditions that must be satisfied in order to receive the money – often job creation or wage goals. Minn. Stat. § 469.1813 subd. 2, 5. A city may grant an abatement only by adopting an abatement resolution, specifying the terms of the abatement. The terms should include a specific statement as to the nature and extent of the public benefits the governing body expects to result from the agreement. The resolution may only be adopted after the council holds a public hearing. Minn. Stat. § 469.1814. Minn. Stat. § 469.1813 subd. 6, 8. A city may issue bonds or other obligations to provide an amount equal to the sum of the abatements granted for a specific property. The maximum principal amount of these bonds may not exceed the estimated sum of the abatements for the property for the years authorized. The bonds may be general obligations of the city, if the city council chooses to pledge the full faith and credit of the city in the resolution issuing the bonds. The law limits property tax abatements to 15 years. School districts and counties have similar abatement powers. A city, county, and school district can agree to abate their taxes on the same property. G. Housing trust funds Minn. Stat. § 462C.16 subd 2. Cities have authority to establish a local housing trust fund by ordinance or to participate in a joint powers agreement to establish a regional housing trust fund. These trust funds may also be administered through a nonprofit organization. If the fund is administered through a nonprofit organization, that organization shall encourage private charitable donations to the fund. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 20 Minn. Stat. § 462C.16 subd 4. A city may finance its local or regional housing trust fund with any money available to local government, unless expressly prohibited by state law. Sources of funding may include, but are not limited to: • Donations. • Bond proceeds. • Grants and loans from a state, federal, or private source. • Appropriations by a local government to the fund. • Investment earnings of the fund. • Housing and redevelopment authority levies. Once the fund is established, the source of funding may be altered, but only if sufficient funds will still exist to cover the projected debts or expenditures authorized by the fund in its budget. Minn. Stat. § 462C.16 subd 3. Money in a local or regional housing trust fund may only be used to: • Pay for administrative expenses, but not more than 10% of the balance of the fund may be spent on administration. • Make grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing. • Match other funds from federal, state, or private resources for housing projects. • Provide down payment assistance, rental assistance, and homebuyer counseling services. Minn. Stat. § 462C.16 subd 5. The local or regional housing trust fund must report annually to the local government that created the fund, and the local government (or governments) must post this report on its public website. Minn. Stat. § 462C.16 subd 6. A local or regional housing trust fund existing on July 1, 2017, is not required to alter the existing terms of its governing documents or take any additional authorizing actions required by the statute. IV. State-sponsored development tools A. Minnesota Housing Finance Agency Minn. Stat. ch. 462A. For more information about MHFA programs, contact MHFA at 400 Wabasha Street North, Suite 400, St. Paul, MN 55102 (651) 296- 7608 or (800) 657-3769. The goals of the Minnesota Housing Finance Agency (MHFA) are to provide decent, affordable housing to low- and moderate-income people; preserve the existing housing stock in Minnesota; preserve existing neighborhoods and prevent them from deteriorating; and prevent mortgage foreclosures while promoting energy conservation in residential housing. The Minnesota Legislature created the MHFA in response to a shortage of affordable housing for low- and moderate-income people. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 21 Private enterprise and private investment were unable, without public assistance, to provide an adequate supply of safe, sanitary, and decent housing at affordable prices and rents. Minn. Stat. § 462A.073 MHFA: Minnesota City Participation Program. Nicola Viana, Program Manager, 651-297-9510, Nicola.Viana@state.mn.us. The sale of state tax-exempt bonds is the primary financing for MHFA programs. Through the Minnesota City Participation Program, Minnesota Housing sells mortgage revenue bonds on behalf of cities to meet locally identified housing needs. The proceeds of these bonds provide below- market interest rate home mortgage loans for low- and moderate-income, first-time homebuyers, or for the construction or rehabilitation of single- and multi-family housing. Appropriations from the Legislature provide additional funding for programs, including the promotion of energy conservation; an increase in home ownership opportunities for first-time homebuyers; home improvement grants to very low-income homeowners; and programs to improve the housing available to Native Americans, large families, and people with disabilities. B. Department of Employment and Economic Development (DEED) Minn. Stat. ch. 116J. Minnesota Department of Employment and Economic Development. The Minnesota Department of Employment and Economic Development is the primary economic development agency for Minnesota. DEED staff is responsible for a wide range of grant and loan programs, as well as for providing technical assistance to businesses and communities. Minn. Stat. §§ 116J.411- 116J.424. Minn. Stat. § 116J.575. See Minnesota Department of Employment and Economic Development for Local Government. DEED also provides grants for contamination cleanup and redevelopment. A redevelopment account allows DEED to make grants to local units of government up to 50% of the cost of developing and redeveloping industrial, residential, or commercial property. DEED administers the rural development program; makes challenge grants to regional organizations to encourage private investment in rural areas; and administers a revolving loan fund to provide loans to new and expanding business in rural Minnesota. Local government units, including cities, may receive these loans if the community has established a local revolving loan fund and can provide at least an equal match to the loan received. Minn. Stat. § 116J.431. Greater Minnesota Business Development Infrastructure Grant Program. Cities outside the seven-county metropolitan area may receive grants from DEED for up to 50% of the capital costs of public infrastructure necessary for certain specified economic development projects, excluding retail and office space. For this program, “public infrastructure” means publicly owned physical infrastructure necessary to support economic development projects, including but not limited to sewers, water supply systems, utility extensions, streets, wastewater treatment systems, RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 22 stormwater management systems, and facilities for pretreatment of wastewater to remove phosphorus. Minn. Stat. § 116J.431, subd. 2. Under this law, an “economic development project” for which a county or city may be eligible to receive a grant under this section includes manufacturing, technology, warehousing and distribution, research and development, agricultural processing, or industrial park development that would be used by any one of these businesses. Minn. Stat. § 116J.435. Department of Employment and Economic Development: Innovative Business Development Program. DEED also runs the Innovative Business Development Public Infrastructure (BDPI) program, which provides grants to local governmental units on a competitive basis statewide for up to 50% of the capital cost of the public infrastructure necessary to expand or retain jobs. Minn. Stat. § 116J.435 subd. 2. “Innovative business” means a business that is engaged in, or is committed to engage in, innovation in Minnesota in one of the following: • Using proprietary technology to add value to a product, process, or service in a high technology field. • Researching or developing a proprietary product, process, or service in a high technology field. • Researching, developing, or producing a new proprietary technology for use in the fields of tourism, forestry, mining, transportation, or green manufacturing. “Proprietary technology” means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted. “Eligible project” means an innovative business development capital improvement project in this state, including: • Manufacturing, technology, warehousing and distribution, and research and development. • Innovative business incubator. • Agricultural processing, or industrial, office, or research park development that would be used by an innovative business. C. Enterprise Minnesota Minn. Stat. ch. 116O. Enterprise Minnesota is a nonprofit business consulting organization, set up by the Legislature that helps small and medium-sized manufacturing companies, education services, and government entities in Minnesota. RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 11/2/2020 Community Development and Redevelopment Chapter 14 | Page 23 Enterprise Minnesota operates as a fee-for-services 501(c)(3) nonprofit. Enterprise Minnesota focuses on applied research and technology transfer and early stage funding. Enterprise Minnesota 612- 373-2900 or 800-325-3073. Minn. Stat. § 116O.061. It may provide financial assistance, including loan guarantees, direct loans, interest subsidies, or equity investments, to sole proprietorships, corporations, other entities, nonprofit organizations, or joint ventures. Financial assistance includes but is not limited to assisting a qualified company or organization with business services and products that will enhance the operations of the entity. D. Corporations Minn. Stat. § 465.717. Minn. Stat. § 471.59. LMC information memo, LMCIT Liability Coverage Guide, Section III-I, Joint powers entities. Cities must not create nonprofit corporations unless authorized to do so by special legislation. The law allows incorporation of a joint powers entity, but these must comply with all applicable public-sector laws (open meeting, gift law, conflicts of interest, competitive bidding, etc.) and must be separately insured. V. Federal development tools A. Community Development Block Grants More information is available on the HUD web site. The Community Development Block Grant (CDBG) program, under the U.S. Department of Housing and Urban Development (HUD), provides cities with federal funding to initiate and continue a diverse array of housing and community development projects. B. Rural development grants For more information, contact Rural Development State Office 410 Farm Credit Service Building 375 Jackson Street St. Paul, MN 55101- 1853, (651) 602-7800; See also, Handbook, Financing Public Improvements. A variety of grants and loans to encourage economic development are available to cities from the U. S. Department of Agriculture’s Rural Development program. Sewer, water, rural enterprise, housing, and other types of grants and loans are available. VI. How this chapter applies to home rule charter cities All of the tools this chapter lists are available to charter cities. The general discussions also apply to all cities. Cottage Grove Public Financing Criteria and Business Subsidy Policy Page 1 City of Cottage Grove and Cottage Grove Economic Development Authority Public Financing Criteria and Business Subsidy Policy June 2017 INTRODUCTION: This Policy is adopted for purposes of the business subsidies act, which is Minnesota Statutes, Sections 116J.993 through 116J.995 (the “Statutes”). Terms used in this Policy are intended to have the same meanings as used in Statutes. Subdivision 3 of the Statutes specifies forms of financial assistance that are not considered a business subsidy. This list contains exceptions for several activities, including redevelopment, pollution clean-up, and housing, among others. By providing a business subsidy, the City commits to holding a public hearing, as applicable, and reporting annually to the Department of Employment and Economic Development (DEED) on job and wage goal progress. 1. PURPOSE AND AUTHORITY A. The purpose of this document is to establish criteria for the City and the City’s Economic Development Authority (“EDA”) for granting of business subsidies and public financing for private development within the City. As used in this Policy, the term “City” shall be understood to include the EDA. These criteria shall be used as a guide in processing and reviewing applications requesting business subsidies and/or City public financing. B. The City's ability to grant business subsidies is governed by the limitations established in the Statutes. The City may choose to apply its Business Subsidy Criteria to other development activities not covered under the statute. City public financing may or may not be considered a business subsidy as defined by the Statutes. C. Unless specifically excluded by the Statutes, business subsidies include grants by state or local government agencies, contributions of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient of the subsidy, any reduction or deferral of any tax or any fee, tax increment financing (TIF), abatement of property taxes, loans made from City funds, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. D. The criteria in this Policy are to be used in conjunction with other relevant policies of the City. Compliance with this Public Finance Criteria and Business Subsidy Policy shall not automatically mean compliance with such separate policies. Cottage Grove Public Financing Criteria and Business Subsidy Policy Page 2 E. The City may deviate from the job and wage goals criteria outlined in Section 5 D and E below by documenting in writing the reason(s) for the deviation. The documentation shall be submitted to the DEED with the next annual report. F. The City may amend this document at any time. Amendments to these criteria are subject to public hearing requirements contained in the Statutes. 2. CITY’S OBJECTIVE FOR THE USE OF PUBLIC FINANCING A. As a matter of adopted policy, the City may consider using public financing which may include tax increment financing (TIF), property tax abatement, bonds, and other forms of public financing as appropriate, to assist private development projects. Such assistance must comply with all applicable statutory requirements and accomplish one or more of the following objectives: 1. Remove blight and/or encourage redevelopment in designated redevelopment/development area(s) per the goals and visions established by the City Council and EDA. 2. Expand and diversify the local economy and tax base. 3. Encourage additional unsubsidized private development in the area, either directly or through secondary “spin-off” development. 4. Offset increased costs for redevelopment over and above the costs that a developer would incur in normal urban and suburban development (determined as part of the But-For analysis). 5. Facilitate the development process and promote development on sites that could not be developed without public financing assistance. 6. Increase the number and diversity of quality jobs and/or retain local jobs at high wages 7. Provide the highest and best desired use for the property 8. Improve or add public infrastructure such as roads, utility extensions, storm water ponding, etc. 9. Establish business interest that add to the diversity of the City’s offerings 3. PUBLIC FINANCING PRINCIPLES A. The guidelines and principles set forth in this Policy pertain to all applications for City public financing regardless of whether they are considered a Business Subsidy as defined by the Statutes. The following general assumptions of development/redevelopment shall serve as City public financing guidelines: 1. All viable requests for City public financing assistance shall be reviewed by staff, and a third party municipal advisor who will inform the City of its findings and recommendations. This process, known as the “But For” analysis is intended to establish that the project would not be feasible but for the City financing assistance. Cottage Grove Public Financing Criteria and Business Subsidy Policy Page 3 2. The City shall establish mechanisms within a development agreement to ensure that adequate checks and balances are incorporated in the distribution of financial assistance where feasible and appropriate, including but not limited to, establishment of a “look back provision” and other performance criteria deemed necessary by the City. 3. TIF and property tax abatement will be provided on a pay-as-you-go-basis. Any request for upfront assistance will be evaluated on its own merits and may require security to cover any risks assumed by the Cit y. 4. The City will set up TIF districts in accordance with the maximum number of statutory years allowable. However, this does not mean that the developer will be granted assistance for the full term of the district. 5. The City will elect the fiscal disparities contribution to come from inside applicable TIF district(s) to eliminate any impact to the existing tax payers of the community. 6. Public financing will not be used to support speculative commercial, office or housing projects. In general the developer should be able to provide market data, tenant letters of commitment or finance statements that support the market potential/demand for the proposed project. 7. Public financing will not be used in projects that would give a significant competitive financial advantage over similar projects in the area due to the use of public financing assistance. Developers shall provide information to support that assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need as determined by the City. 8. Public financing will not be used in a project that involves a land and/or property acquisition price in excess of fair market value. 9. Public financing will not be used for single-family residential developments or stand- alone corporate-owned fast food restaurants. In addition, public financing will not be used for big-box retail that is not part of a redevelopment project or special purpose project of the City. 10. The developer will pay all applicable application fees and pay for the City’s fiscal and legal advisor time as stated in the City’s Public Assistance Application. 11. The City will consider waiving fees on a case-by-case basis including, but not limited to, park dedication fees, water and/or sewer/storm sewer connection or area charges. The City may consider using SAC credits, to the extent they are available, to off-set a project’s SAC expenses. 12. The developer shall proactively attempt to minimize the amount of public assistance needed through the pursuit of grants, innovative solutions in structuring the deal, and other funding mechanisms. 13. All developments are subject to execution and recording of a Minimum Assessment Agreement and Development Agreement. Cottage Grove Public Financing Criteria and Business Subsidy Policy Page 4 4. PROJECTS WHICH MAY QUALIFY FOR PUBLIC FINANCING ASSISTANCE A. All new applications for public assistance considered by the City must meet all the minimum qualifications in Section 4.1, 4.2 A and B, and as many of the desired qualifications in Section 4.2 C as feasible. However, it should not be presumed that a project meeting these qualifications will automatically be approved for assistance. Meeting the qualifications does not imply or create contractual rights on the part of any potential developer to have its project approved for assistance. 4.1 MINIMUM QUALIFICATIONS/REQUIREMENTS: A. In addition to meeting the applicable requirements of State law, the project shall meet two or more of the public financing objectives outlined in Section 2. B. The developer must demonstrate to the satisfaction of the City that the project is not financially feasible “but for” the use of tax increment or other public financing. C. The project must be consistent with the City’s Comprehensive Plan and Zoning Ordinances, Design Guidelines and any other applicable land use documents or City requirements. D. Prior to approval of a financing plan, the developer shall provide all requested market and financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other information the City or its financial consultants may require in order to proceed with an independent evaluation of the application for public financing. E. The developer must provide adequate financial guarantees to ensure the repayment of any public financing and completion of the project. These may include, but are not limited to, assessment agreements, letters of credit, personal deficiency guarantees, guaranteed maximum cost contract, etc. F. Any developer requesting assistance must be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. Public financing will not be used when the developer’s credentials, in the sole judgment of the City, are inadequate. The City’s evaluation of the developer’s credentials may include, but is not limited to, performance on past projects, general reputation, project references, bankruptcy and other criteria considered relevant to the City. G. The developer, or its contractual assigns, shall retain ownership of any portion of the project long enough to complete the project, stabilize its occupancy, and establish project management and/or needed mechanisms to ensure successful operation. 4.2 DESIRED QUALIFICATIONS: A. Projects providing a high ratio of private investment to City public investment will receive priority consideration. Private investment includes developer cash, government and bank loans, conduit bonds, tax credit equity, and land if already owned by the developer. Cottage Grove Public Financing Criteria and Business Subsidy Policy Page 5 B. Proposals that significantly increase the amount of property taxes paid after redevelopment will receive priority consideration. C. Proposals that encourage the following will receive priority consideration: 1. Implements the City’s vision and values for a City-identified redevelopment areas in order of priority; a. Business Park b. Gateway North District c. Cottage View District d. Langdon Village Area (along portion of West Point Douglas Road) including the Majestic Ballroom 2. Provides opportunities for corporate campus or medical office development 3. Provides opportunity for hi-tech, med-tech, R & D facilities/office or major manufacturer 4. Provides for development of limited or full-service hotels 5. Provides opportunities for entertainment venues such as movie theater, family fun center or larger attraction unique to the City 6. Promotes multi-family housing investment that meets the following City goals: a. Provides housing options not currently available b. Provides affordable and/or workforce housing that include amenities similar to those found in market rate housing c. Provides market-rate housing with high-end finishes and amenity package 7. Redevelops a blighted, contaminated and/or challenged site 8. Attracts or retains a significant employer within the City 9. Provides significant rehabilitation or expansion and/or replacement of existing office, manufacturing or commercial facility 10. Provides façade improvements (including building facades, signage, landscaping and parking lots) for commercial/industrial developments 11. Adds needed road, access, multi-modal improvements and or public infrastructure 12. Provides opportunities for small businesses (under 50 employees) 13. Provides significant improvement to surrounding land uses, the neighborhood, and/or the City 5. BUSINESS SUBSIDY CRITERIA: PUBLIC PURPOSE, JOBS AND WAGE REQUIREMENT A. All business subsidies must meet a public purpose with measurable benefit to the City as a whole. B. Job retention may only be used as a public purpose in cases where job loss is specific and Cottage Grove Public Financing Criteria and Business Subsidy Policy Page 6 demonstrable. The City shall document the information used to determine the nature of the job loss. C. The creation of tax base shall not be the sole public purpose of a subsidy. D. Unless the creation of jobs is removed from a particular project pursuant to the requirements of the Statutes, the creation of jobs is a public purpose for granting a subsidy. Creation of at least one (1) new full time employee (FTE) is a minimum requirement for consideration of assistance and, it should not be presumed that a project meeting this minimum requirement will automatically be approved for assistance. The City may require more jobs be created in order for a developer to receive public assistance. For purposes of this Policy, FTE’s must be permanent positions with set hours, and be eligible for benefits. E. The wage floor for wages to be paid for the jobs created shall be not less than 200% of the State of MN Minimum Wage. The City will seek to create jobs with higher wages as appropriate for the overall public purpose of the subsidy. Wage goals may also be set to enhance existing jobs through increased wages, which increase must result in wages higher than the minimum under this Section. F. After a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals may be set at zero. 6. SUBSIDY AGREEMENT A. In granting a business subsidy, the City shall enter into a subsidy agreement with the recipient that provides the following information: wage and job goals (if applicable), commitments to provide necessary reporting data, and recourse for failure to meet goals required by the Statutes. B. The subsidy agreement may be incorporated into a broader development agreement for a project. C. The subsidy agreement will commit the recipient to providing the reporting information required by the Statutes. 7. PUBLIC FINANCING PROJECT EVALUATION PROCESS A. The following methods of analysis for all public financing proposals will be used: 1. Consideration of project meeting minimum qualifications 2. Consideration of project meeting desired qualifications 3. Project meets “but-for” analysis and/or statutory qualifications 4. Project is deemed consistent with City’s Goals and Objectives Please note that the evaluation methodology is intended to provide a balanced review. Each area will be evaluated individually and collectively and in no case should one area outweigh another in terms of importance to determining the level of assistance. Minnesota Offices Corporate Headquarters 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 651.223.3000 651.223.3002 Fax California Office 28137 Espinoza Mission Viejo, CA 92692 949.600.5330 949.600.5325 Fax Des Moines Office 300 Walnut Street Suite 215 Des Moines, IA 50309-2258 515.244.1358 515.244.1508 Fax Kansas City Office 7211 West 98th Terrace Suite 100 Kansas City, KS 66212-2257 913.345.8062 913.341.8807 Fax Richmond 8790 Park Central Drive, Suite B Richmond, VA 23227 804.726.9750 804.726.9752 Fax Virginia Beach 1206 Laskin Road, Suite 210 Virginia Beach, VA 23451-5263 757.422.1711 757.422.6617 Fax Wisconsin Office 1110 North Old World 3rd Street Milwaukee, WI 53203-1100 414.220.4250 414.220.4251 Fax advisors@springsted.com www.springsted.com City of Hugo, Minnesota Tax Increment Financing Policy & Application Adopted: Revised Page 2 Table of Contents I POLICY PURPOSE ........................................................................................... 1 II OBJECTIVES OF TAX INCREMENT FINANCING........................................... 1 III POLICIES FOR THE USE OF TIF..................................................................... 2 IV PROJECT QUALIFICATIONS........................................................................... 3 V SUBSIDE AGREEMENT & REPORTING REQUIREMENTS............................ 4 VI APPLICATION PROCESS ................................................................................ 5 VII APPLICATION FOR TAX INCREMENT FINANCING....................................... 6 Applicant Information 6 Project Information 7 Public Purpose 8 Sources & Uses 8 Additional Documentation 9 I APPLICATION REVIEW WORKSHEET.......................................................... 11 II EXHIBITS......................................................................................................... 13 Exhibit A 15 Exhibit B 16 Exhibit C 17 Exhibit D 18 Exhibit E 19 City of Hugo, Minnesota Page 1 I. POLICY PURPOSE For the purposes of this document, the term “City” shall include the Hugo City Council and Economic Development Authority. The purpose of this policy is to establish the City of Hugo’s position relating to the use of Tax Increment Financing (TIF) for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax increment assistance. The fundamental purpose of tax increment financing in Hugo is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. The City of Hugo is granted the power to utilize TIF by the Minnesota Tax Increment Financing Act, as amended. It is the intent of the City to provide the minimum amount of TIF at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of TIF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City Council and Economic Development Authority can deviate from this policy for projects that supersede the objectives identified herein. II. OBJECTIVES OF TAX INCREMENT FINANCING Tax Increment Financing (TIF) uses the increased As a matter of adopted policy, the City will consider using TIF to assist private development projects to achieve one or more of the following objectives: • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. • To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development. • To facilitate the development process and to achieve development on sites which would not otherwise be developed but/for the use of TIF. • To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment. • To offset increased costs of redevelopment (i.e. contaminated site clean up) over and above the costs normally incurred in development. • To create opportunities for affordable housing. City of Hugo, Minnesota Page 2 • To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government. III. POLICIES FOR THE USE OF TIF a. When possible, TIF shall be used to finance public improvements associated with the project. The priority for the use of TIF funds is: 1. Public improvements, legal, administrative, and engineering costs. 2. Site preparation, site improvement, land purchase, demolition, and environmental remediation. 3. Capitalized interest, bonding costs. b. The following types of TIF districts may be established: 1. Economic Development Districts 2. Redevelopment Districts 3. Housing Districts 4. Renewal and Renovation Districts Other types of TIF districts, along with specific criteria, may be considered on a case by case basis. c. TIF assistance will be provided to the developer upon receipt of the increment by the City, otherwise referred to as the pay-as-you-go method. Requests for up front financing will be considered on a case by case basis. d. A maximum of ten percent (10%) of any tax increment received from the district shall be retained by the City to reimburse administrative costs. e. Only for projects which supersede the objectives identified herein, will the term of the TIF assistance exceed 15 years. f. Any developer receiving TIF assistance shall provide a minimum of twenty percent (20%) cash equity investment in the project. TIF shall not be used to supplant cash equity. g. TIF will not be used in circumstances where land and/or property price is in excess of fair market value. An appraisal by a third party, agreed upon by the City and Developer, will determine the fair market value of the land. h. Developer shall be able to demonstrate a market demand for a proposed project. TIF shall not be used to support purely speculative projects. i. TIF will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. City of Hugo, Minnesota Page 3 j. TIF shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. k. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, etc. l. The developer shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. m. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. IV. PROJECT QUALIFICATIONS All TIF projects considered by the City of Hugo must meet all of the following requirements: a. To be eligible for TIF, a project shall result in: i. For Economic Development TIF Districts, new construction of a minimum of 15,000 square feet; ii. For Economic Development TIF Districts, the minimum creation of one new or retained full time job per $100,000 of TIF provided; iii. For Redevelopment TIF Districts, a minimum value increase of 3 times the current year assessed value; and, b. The project shall meet at least one of the objectives set forth in Section II and satisfy all the provisions set forth in Section III of this document. c. The developer shall demonstrate that the project is not financially feasible but- for the use of TIF. d. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. e. The project shall serve at least two of the following public purposes: • Creation of jobs with livable wages and benefits. • Increase of tax base. • Enhancement or diversification of the city’s economic base. • Industrial development that will spur additional private investment in the area. • The project contributes to the fulfillment of the City’s development or redevelopment objectives. • Removal of blight or the rehabilitation of a high profile or priority downtown site. City of Hugo, Minnesota Page 4 V. SUBSIDY AGREEMENT & REPORTING REQUIRMENTS All developers/businesses receiving tax increment financing assistance from the City of Hugo shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. All developers/businesses receiving TIF assistance shall enter into a subsidy agreement with the City of Hugo that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116J.993. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and performance agreement have been meet, whichever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City of Hugo no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where TIF assistance is used for a period of five years after the benefit is received. In addition to attaining or exceeding the jobs and wages goals set forth in the Subsidy Agreement, the applicant shall meet the qualifications set forth in Section IV of this document. Developers / Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State of Minnesota to receive any loans or grants from public entities for a period of five years. City of Hugo, Minnesota Page 5 VI. APPLICATION PROCESS 1. Applicant submits the completed application along with all application fees. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, the Tax Increment Financing Plan, along with all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. 5. Notices are published and sent to the county and school board. 6. Public hearing(s) on the proposed project are held. 7. The EDA recommends approval or denial of the project to the City Council. 8. The City Council grants final approval or denial of the proposal. City of Hugo, Minnesota Page 6 VII. APPLICATION FOR TAX INCREMENT A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following: • Brief description of the corporation/partnership’s business, including history, principal product or service, etc. Attach as Exhibit A. • Brief description of the proposed project. Attach as Exhibit B. • List names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. Attach as Exhibit C. • A but-for analysis. Attach as Exhibit D. Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email City of Hugo, Minnesota Page 7 B. PROJECT INFORMATION The project will be: ____Industrial Greenfield: ____New Construction ____ Expansion ____Commercial Redevelopment: ____New Construction ____ Rehabilitation ____Industrial Redevelopment: ____New Construction ____ Rehabilitation ____Housing Redevelopment: ____New Construction ____ Rehabilitation ____Mixed Use Redevelopment: ____New Construction ____ Rehabilitation ____Other Please explain the basic components of the project proposed, i.e., amount of new commercial square footage, numbers of housing units (rental or owner occupied), etc. The project will be: ____Owner Occupied ____Leased Space If leased space, please attach a list of names and addresses of future lessees and indicate the status of commitments or lease agreements. Attach as Exhibit E. Project Address Legal Description Site Plan Attached: ____ Yes ____ No Amount of Tax Increment Requested for: Building Demolition $______________________________ Environmental Remediation $______________________________ Public Improvements $______________________________ Site Improvements $______________________________ Land Acquisition $______________________________ (Land Acquisition shall not exceed 50% of total subsidy request) Total Subsidy Requested $ Current Assessed Value on Project Site: $ Current Real Estate Taxes on Project Site: City $ County $ School District $ Estimated Assessed Value upon Completion: Phase I $ Phase II $ City of Hugo, Minnesota Page 8 Estimated Real Estate Taxes upon Completion: Phase I $ Phase II $ Construction Start Date: Construction Completion Date: If Phased Project: Year ____ % Construction Completed Year ____ % Construction Completed C. PUBLIC PURPOSE It is the policy of the City of Hugo that the use of Tax Increment Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. ___Job Creation: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created ___Increase in Tax Base ___Enhancement or diversification of the city’s economic base. ___New industrial development which will result in additional private investment in the area. ___The project contributes to the fulfillment of the City’s development or redevelopment objectives. ___Removal of blight or the rehabilitation of a high profile or priority downtown site. ___Other: D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Equity $ Fed Grant/Loan $ State Grant/Loan $ Other Loans $ ID Bonds $ Tax Increment $ 0 ** TOTAL $ **Note: Tax Increment is not an upfront funding source as it will be provided only on a pay-as-you-go basis. Developer needs to identify funding sources to cover ALL costs up front, absent Tax Increment. City of Hugo, Minnesota Page 9 USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ TOTAL $ E. ADDITIONAL DOCUMENTATION Applicants will also be required to provide the following documentation. A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Two Years Profit & Loss Statement Balance Sheet C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date D) Two Year Financial Projections F) Personal Financial Statements of all Major Shareholders Profit & Loss Current Tax Return G) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration H) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project I) Non refundable application fee of $2,500 J) Check for $10,000 to be placed in escrow to be used by the City to complete analysis of the subsidy requested, and to pay costs associated with Attorney’s fees for the TIF Agreement (unused portion to be refunded) City of Hugo, Minnesota Page 10 The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the City of Hugo to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the City after the filing of this application. Applicant Name Date By Its City of Hugo, Minnesota Page 11 TAX INCREMENT FINANCING PROPOSAL REVIEW WORKSHEET Redevelopment Districts 1. The project meets the criteria set forth in Section III of the City’s Tax Increment Financing policy. a) Meets minimum thresholds for size, value, and tax capacity. b) Meets at least one of the objectives in Section III and satisfies the provision set forth in Section IV. c) Demonstrates need for TIF with the but-for analysis. e) Consistent with all city plans and ordinances. f) Serves at least two public purpose as defined in Section IV. 2. Ratio of Private to Public Investment in Project: Points: $ Private investment 5:1 5 $ Public Investment 4:1 4 Ratio Private to Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Structure of Financing: Points: ______ < 10% of Subsidy Requested for Land Acq. 5 ______ 11% - 20% of Subsidy Requested for Land Acq. 4 ______ 21% - 30% of Subsidy Requested for Land Acq. 3 ______ 31% - 40% of Subsidy Requested for Land Acq. 2 ______ 41% - 50% of Subsidy Requested for Land Acq. 1 4. Type of Project: Points: 100% Owner Occupied 5 Mix Owner Occupied & Investment 4 Investment Property 3 5. Use: Points: Retail 5 Office/Commercial 5 Mixed-use 5 Housing 3 Industrial 1 6. Type of Development: Points: ______ Redevelopment of Substandard Structures 5 ______ Development of Vacant Land 3 7. Job Creation/Wage Level Points: ______ 15+ Full Time Equivalent (FTE) Jobs, $15-$20 per hour 5 ______ 10-14 FTE’s, $10-$14 per hour 4 ______ 1-9 FTE’s, $7-$9 per hour 3 City of Hugo, Minnesota Page 12 8. Assessed Value: Points: ______ 7+ times current 5 ______ 6 times current 4 ______ 5 times current 3 ______ 4 times current 2 ______ 3 times current 1 9. The project will pay annual Points: property taxes in the first fully 50,000 + 5 assessed year of $ 35,000 + 4 20,000 + 3 10,000 + 2 Under 10,000 1 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 11. Bonus Points Points: The project will be 100% Pay-as-you-go TIF 3 points The project meets the goals of downtown redevelopment 2 points Total Points: Overall Project Analysis: 40-48 Points Max Remaining Term 35-39 Points 65-75% of Remaining Term 25-34 Points 40-50% of Remaining Term 15-24 Points 25-30% of Remaining Term 0-14 Points Not Eligible Sub - Total Points: of a possible 45 points. City of Hugo, Minnesota Page 13 EXHIBIT A Description of the corporation or partnership EXHIBIT B Description of the proposed project EXHIBIT C Names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. EXHIBIT D But-for analysis EXHIBIT E Prospective Lessees City of Hugo, Minnesota Page 14 SAMPLE BUT-FOR ANALYSIS WITH NO WITH TAX INCREMENT TAX INCREMENT SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,00 Tax Increment Financing 0 933,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 288,061 Total Return on Equity 7.74% 12.00% City of Hugo, Minnesota Page 15 EXHIBIT A Description of the corporation or partnership City of Hugo, Minnesota Page 16 EXHIBIT B Description of the proposed project City of Hugo, Minnesota Page 17 EXHIBIT C Names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. City of Hugo, Minnesota Page 18 EXHIBIT D But-for analysis City of Hugo, Minnesota Page 19 EXHIBIT E Prospective Lessees CITY OF STILLWATER TAX INCREMENT FINANCING POLICY Purpose: The purpose of this policy is to describe the city's goals and objectives for the use of tax increment financing proposals including requirements, review criteria, eligible activities and funding approach. Goals and Objectives: The goal for the City of Stillwater is to encourage and provide for the revitalization of the city through the development or redevelopment of existing and new commercial, industrial and residential areas, to increase jobs, strengthen the local tax base and to assist in the provision of a variety of affordable housing opportunities for city residents. Objectives: 1. Create a desirable and unique character through compatible la nd use and quality design in new and redeveloped building. 2. Stabilize and strengthen the local property tax base. 3. Increase job opportunities and city residents. 4. Eliminate blight and substandard conditions that impede the development potential and economic health of the downtown area and other redevelopment district areas. 5. Preserve historically significant structure to reuse in viable commercial, industrial or residential activities. 6. Encourage local business expansion. 7. Promote the development of certain areas and properties consistent with the city comprehensive plan, downtown plan and special area plans. 8. Retain and attract stable industries which provide significant employment and tax base. Procedure: The following process lists the steps the city will follow in reviewing TIF assistance requests: 1. The applicant shall present the general development concept and discuss the project with the community development director. 2. A written request shall be submitted to the community development director's office with the information described below along with the attached tax increment financing preapplication, preliminary agreement and deposit. 3. The request will be reviewed internally by staff and consultants, as appropriate. Staff will address completeness of preapplication and generally evaluate the project using the TIF requirements and review criteria. 4. The application shall be placed on the city council agenda. The developer shall make a formal presentation and staff report presented. 5. If the city council preliminary review is positive, a full application shall be filed. A complete study of the project will begin, including financial and market analysis. 6. Concurrent with staff project review and analysis, the developer shall begin city planning permit review. 7. Upon completion of the staff’s review and analysis and the planning commission permit recommendation, the reports shall be forwarded to the city council for decision. 8. If the reports are satisfactory to the council, the council may authorize staff to commence negotiations on a development contract to make any modification to the development program for the development district and tax increment financing plan and to follow the statutory procedures for notification to Washington county and the school district. All public hearings, zoning, environmental review requirements and other normal municipal procedures shall be met. 9. If the proposal and all necessary reviews are approved, the applicant shall enter into a detailed development and assessment agreement with the city. The agreement shall include suitable collateralized guarantees, a minimum assessed value for the project, an equity participation agreement as appropriate and guarantees that the tax increments will begin to be received on a certain date, the amount of security required will be based on the city's assessment of the risk of the project. General Requirements for Proposal: 1. Public benefit of assistance must be clearly de monstrated. It must be financially demonstrated that the project will not take place without tax increment assistance. All proposals requesting TIF assistance and that, but for the assistance the project would not go forward or would locate in a different area. 2. Developers must provide full disclosure of project financial and market information so that the city can have the information verified and reviewed by a qualified expert. 3. All projects requesting tax increment assistance shall be of the highest quality of design including brick or masonry materials exhibiting a distinctive non -generic style, extensive landscaping, underground irrigation system, screened service and utility areas and subdued exterior lighting and signage. 4. The valuation of built improvements for the proposed project shall be at least $600,000 and offer at least four hundred (400) hours per week of employment opportunity. 5. All proposals shall be located in the development district. 6. Construction for all assisted proposals must start within one year of planning permit approval and be completed within two years. (For extraordinary reasons, this may be extended by the city council.) 7. Assisted sites shall not be landed banked for future use but developed at the time of assistance. 8. TIF proposals shall not be speculative industrial, commercial and office projects. (In general, speculative projects are defined as those projects which have lease agreements for less than 70 percent (70%) of the available leased space.) 9. TIF assistance will not be used in projects that involve excess lands and/or higher than market property price. 10. The developer shall retain ownership of the project at least two years from the date of completion to stabilize occupancy, establish project management and begin repayment of TIF. Review Criteria: 1. Projects shall leverage the maximum private investment possible. Generall y, they should achieve an 8 to 1 private to public ratio. Less ratios may be acceptable where an overwhelming public purpose is served. 2. The project must be consistent with the comprehensive plan, downtown plan, special area plans, zoning ordinance requirements and design guidelines. 3. Any developer requesting city assistance must be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. 4. Development proposals shall create or retain a significant number of jobs with special priority given to primary wage earner full-time positions. 5. Proposals shall optimize potential of the site. 6. TIF funding will not be provided to those projects that fail to meet good public policy criteria as determined by the council, including: poor project quality; projects that are not in accord with the comprehensive plan, zoning, redevelopment plans and city policies; projects that provide no significant improvement to surrounding land uses, the neighborhood, and/or the city; projects that do not provide a significant increase in tax base; projects that do not have a significant ne w, or retained, employment; projects that do not meet financial feasibility criteria established by the city; and projects that do not provide the highest and best desired use for the property. Eligible Uses of Tax Increment Assistance 1. Acquire land or building space which is vacant, unused, under used or inappropriately used. 2. Provide for the financing and construction of public improvements; i.e., water, sanitary sewer and storm sewer lines, roads and drainage. 3. Provide for site preparation; i.e., grading, soil correction, cliff dewatering, landscaping or drainage improvements for private development. 4. Enhance building design and site landscaping. 5. Provide adequate business and shopper parking. 6. Reduce special assessment and write down land costs. Funding Approach The preferred method of providing assistance for private projects is the "pay as you go" approach and the loan approach. "Pay as you go" does not involve the issuance of bonds and thus limits the city's financial exposure in these uncertain times of state enabling legislation. The loan approach involves the sale of tax increment bonds and loaning the proceeds to the developer which in turn comes back to the city with interest. The repayment funds would be placed in a development account to assist with future development. This lessens the bond risk because there are two income streams, tax increment and loan payments, that can be used to meet the bond obligation. Only in special unique situations where there is very significant benefit to the community, will "up front" assistance be considered. A combination of assistance techniques may be appropriate in some situations. The following TIF allocation criteria will be used as a guideline: (1) A minimum of 50 percent (50%) of all new TIF proceeds shall be used in the downtown redevelopment district to correct blighted conditions (2) new or expansion of basic industrial development may receive TIF assistance according to the economic development district requi rements (maximum eight (8) years of assistance) (3) other commercial office, retail or service business may receive 2-1/2 years of "pay as you go" assistance (50 percent (50%) of TIF proceeds for five years) for land write down or special assessment reduct ion. Principles Used to Review and Negotiate TIF Development Contracts 1. To limit public financial assistance to a project to the minimum amount necessary and assure the successful accomplishment of the project. 2. To keep the payback period for tax increment bonds and loans to the shortest term possible. 3. To provide tax increment assistance only to those projects which general sufficient increment to cover debt service. 4. To provide the greatest security possible to protect the city's investment in the project. 5. To recapture the public investment to the maximum extent possible through equity participation in the project or to treat TIF assistance as a second mortgage with fixed payments. 6. To assist only projects that will not result in significant negative environmental impacts on the city. 7. TIF assistance will not be used to give a competitive financial advantage over similar projects in the area. CITY OF STILLWATER PRE-APPLICATION TAX INCREMENT FINANCING ASSISTANCE Legal Name of Applicant: Address: Telephone Number: Name of Contact Person: REQUESTED INFORMATION Addendums shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including: size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; other pertinent information. 3. The existing Comprehensive Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. Explain any discrepancies between the proposed development and the existing land use designation and zoning. 4. A statement identifying the public improvements requested to be financed and why the costs of the improvement cannot be paid by the developer. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created and other community assets. 6. A written perspective of the developers company or corporation, principals, history and past projects. Applicant understands and agrees that the information contained in this application, and the information contained in items above, is intended for use by the City of Stillwater, its officers, employees, and agents in connection with the City's consideration of possible tax increment bond financing for applicant's project; however, the City gives no assurance that this information may not be disclosed, in whole or part, to persons other than City's officials, employees and agents. SIGNATURE Applicant's Signature: Date: CITY OF STILLWATER PRELIMINARY AGREEMENT FOR TAX INCREMENT FINANCING (I) This Preliminary Agreement made and entered into by and between the City of Stillwater, a Municipality organized and operating under the laws of the State of Minnesota (hereinafter called "City") and a corporation organized under the laws of the State of (hereinafter called "Developer"). WITNESSETH: (II) WHEREAS, the City has received from Developer a request that the City provide tax increment assistance pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Sections 469.174 through 469.179 (collectively, the "Act") in connection with a project to be undertaken by the Developer within the City. (III) NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: A. The Developer agrees to deposit with the City $5,000 for any and all expenses and costs of the City in connection with the preparation of the development program and all documentation and procedures required by the Act in connection with the issuance of tax increment bonds, whether or not the tax increment bonds are actually issued, as verified by itemized statements for services rendered. Costs and expenses shall include, but not be limited to, all out-of-pocket expenses, all fees for legal services, all fees for architectural engineering and financial services including feasibility reports, all administration costs, appraisal costs, all costs of reports and hearings. Monies not expended will be refunded to the applicant. Additional expenses, if any, will be passed to the developer. B. The City Council reserves the right to deny any application for financing at any stage of the proceedings prior to its entering into a Development Agreement. C. All applications and supporting materials and documents shall remain the property of the City. All such materials may be subject to disclosure and/or public review under applicable provisions of State Law. (IV) IN WITNESS WHEREOF, the City and the Developer have executed this Agreement. Approved by the City of Stillwater, Minnesota, this day of , 20 . DEVELOPER CITY OF STILLWATER Mayor APPLICATION FOR TAX INCREMENT FINANCING ASSISTANCE 1. Qualifications of developer, including prior experience in similar or other developments. Qualifications of principal member of development team, including the architect, construction company, and financial advisor. 2. "But for" letter describing need for TIF assistance. 3. Financial information, including developer participation, and public and private funding. 4. Description of present ownership arrangement of project site. 5. Describe project. If project is a building, or addition to a building, specify number of stories, square footage, and related parking. (Attach site plan, landscape plan, and building elevations indicating building materials. 6. Describe use in building, i.e. industrial, office, commercial, and number of new employees resulting from the project. 7. Estimated project costs: a. Land acquisition: $ b. Site development: $ c. Building cost: $ d. Equipment: $ e. Architectural and engineering fees: $ f. Legal fees: $ g. Bond discount, fees to underwriter and brokerage fees: $ h. Interest during construction: $ i. Off-site development cost: $ j. Initial bond reserve fund: $ k. Contingencies: $ l. Other (please specify): $ Total $ 8. Will project be occupied by applicant after completion? If not, state name of future lessees and status of commitments or lease agreements and amount of space. (Attach lease documents). 9. Describe amounts of City assistance being requested and for discuss what purpose. 10. Are there any significant environmental impacts signs that impacts to the site or area that may result from the project? 11. Present schedule showing dates for design, construction and occupancy of the project . 12. Applicant: a. Name b. Address c. Phone d. Authorized Representative e. Business Firm (Partnership, Corporation, etc.) f. Date the Partnership or Corporation was formed 13. Names and addresses of principal partners, major stockholders, etc. 14. Names, addresses, phone, and contact person for firms providing consulting services for the project. a. Architect/Engineering b. Financial c. Market d. Legal e. Other 15. Financial History/References. a. Have you applied for conventional financing for the project? Yes  No List status and details b. Have you or any of the principals in the project ever filed for bankruptcy? Yes  No c. Have you or any of the principals ever defaulted on property taxes for property in the City of Stillwater? Yes  No d. Are your or any of the principals currently delinquent on property taxes for property in the City of Stillwater? Yes  No e. List three financial references: 16. A statement indicating the developers willingness to undertake the development of the proposed project if: a. A satisfactory agreement can be reached for the City's commitment for the requested public improvements; b. A satisfactory mortgage and equity financing for the proposed project can be secured; and c. The economic feasibility and soundness of the proposed project have been analyzed and confirmed to the satisfaction of the City and the developer. 17. Statement of willingness of developer to enter into an agreement, after project planning has been completed, which would require developer to provide appropriate guarantees prior to the City's provision of assistance to undertake public activity related to the proposed project. 18. Any other pertinent data developer wishes to propose. 19. The City reserves the right to require additional information and supporting data from the applicant after the filing of this application. Applicant understands and agrees that the information contained in this application and the information contained in items above is intended for use by the City of Stillwater, its officers, employees, and agents in connection with the City's consideration of possible tax increment bond financing for applicant's project; however, the City gives no assurance that this information may not be disclosed, in whole or in part, to persons other than City's officials, employees and agents. The Undersigned, (a) (the) of applicant, hereby represents and warrants to the City that (he) (she) has carefully reviewed this application, and that herewith are accurate and complete to the best of the Undersigned's knowledge and belief. Dated: By: Its: EDA RESOLUTION NO.16-02 RESOLUTION OF THE BOARD OF COMMISSIONERS OFTHEECONOMICDEVELOPMENTAUTHORITY IN AND FOR THE CITY OF WOODBURY, MINNESOTA ENDORSING THE CITY OF WOODBURY'S BUSINESS SUBSIJ)Y POLICY -BE IT RESOLVED by the Board of Commissioners (the 11Board11 ) .of the Economic Development Authority in and for the City of Woodbury, Minnesota (the "Authority"), as follows: 1. Recitals. All ·things required by the applicable provisions of Minnesota Statutes, Sections 469.090 to 469.108, have been duly taken in order to create, constitute, and activate the Authority. 2. Business Subsidies~ The Authority is authorized to issue business subsidies as defined by the State's Business Subsidies Act, which is Minnesota Statutes, Sections 116J.993 through l16J.995. 3. Endorsement of CD-COMDEV-3 .4. The Authority here~y endorses the City of Woodbury's Business Subsidy policy, CD-COMDEV-3.4, and establishes a procedure of following CD-COMDEV-3.4 when considering economic development financing opportunities. · This Resolution was declared duly passed and adopted and was signed by the President and attested to by the Executive Director this 27th day of January, 2016. . .Attest: COUNCIL DIRECTIVE Adopted: Number: CD-COMDEV-3.4 EDA: 12~16-99 Council: 1-12-00 Revised: EDA: 3-11-04 Council: 4-28-04 Council: 8-27-08 EDA: 9-11-08 Council: 2-24-16 Subject: Business Subsidy Policy PURPOSE. This umbrella policy is intended to govern the use of municipal economic development financing tools within the City of Woodbury. The intent of this umbrella policy is to ensure that any municipal investment structured in the shape of a business subsidy ("Business Subsidy") shall meet a two-part test: 1. But For Test. A business requesting financial assistance must demonstrate a substantial likelihood that the project would not otherwise proceed without a Business Subsidy and that the requested amounti~·the minimum amount needed to ensure a successful project. : 2. Feasibility. A business requesting financial assistance must demonstrate to the satisfaction of the City Council that the project will be adequately capitalized and will be able to be completed in a timely fashion if financial assistance is provided. This policy shall be adopted by both the City of Woodbury and the Economic Development Authority in and for the City of Woodbury (EDA). References hereinafter to the City 9r to the City Council shall be· assumed to also reference the EDA and its Board of Commissioners. The legal grounding of this policy is two-fold: 1. To comply with the Business ·subsidies Act (the "Act"), which is Minnesota Statutes, Sections 116J.993 through 116J.995~ as amended, and; 2. To establish minimum performance parameters for assistance provided through economic development financing tools including but not limited to Tax Increment Finfj.D.cing (TIF), Tax Abatement and/or the Woodbury Growth Fund. DEFINITIONS Terms used in this policy are intended to have the same meanings as used in the Act, however, this policy shall apply both to subsidies granted under the Act and to financial assistance not governed under ~~ . CD-COMDEV-3.4 Business Subsidy Policy Council Directive CD-COl\IDEV-3 .4 Business Subsidy Policy Page 2 of4 For the purpose of this policy, a Business Subsidy is defined as in Section 1161993, Subdivision 3 of the Act, in an amount of$25,000 or greater. · Many forms of finan,cial assistance are not legally considered a Business Subsidy and are therefore not regulated by the Act. Although these forms of financial assistance are not legally considered a Business Subsidy, the City Council may require at its sole discretion that the recipient of said financial assistance must comply with this Policy. Forms of financial assistance not considered to be a Business Subsidy are listed in Section l 16J.993, Subdivision 3 ofthe Act, including but n()t limited to: 1. Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; 2. Assistance for housing; and 3. Funds from· bonds allocated under Minnesota Statutes chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 50l(c)(3) ofthe Internal Revenue Code of 1986, as amended through December 31, 1999. POLICY A. A Business Subsidy in the City of Woodbury must meet a public purpose, which includes, but is not· limited to, increasing the tax base. Additional public purposes may include the following: • Enhancing economic diversity so as to improve tlie mix of businesses in the area; • Creating high quality job growth; _ • Providing for job retention, where job loss is imminent and demonstrable; • Community stabilization; or .• Other public purposes as determined by the City Council B. To receive a Business Subsidy, a business must enter into a Business Subsidy Agreement ("Agreement") with the City of Woodbury. This Agreement, except as provided by state law, must include project descriptions and definitions, wage and job goals, enforcement mechanisms, reporting requirements, and other related contract documentation including but not limited to the requirements of Section 116J.994 of the Act. CRITERIA All projects receiving a Business · Subsidy must comply with the But For and Feasibility tests as identified above. Additionally, the following criteria apply to recipients of economic development :financing regardless ofwhether or not the proposed project meets the definition of a Business Subsidy as defined by the Act. The City shall be guided by the following principles and criteria for establishing job c.reation and wage level goals, regardless of whether or not the proposed project meets the definition of a Business Subsidy as defined by the Act: CD-COMDEV-3.4 Business Subsidy Policy Council Directive CD-COMDEV-3.4 Business Subsidy Policy Page 3 of 4 • If the City determines that the objective for providing the Business Subsidy involves the creation of jobs, the benefiting business must define in its Agreement with the City the number of jobs to be created. The number of jobs may include separate goals for the number of part-time or full-time jobs, or, in cases where job loss is specific and demonstrable, goals for the number of jobs retained. These goals must be attained within two years of the Benefit Date as defined by Section 116J.993, Subdivision 2 of the Act ("Benefit Oate"). The benefiting business must also agree to pay 100 percent of the number of newly hired employees as required in the Agreement at a rate equal to or greater than 200 percent of the federal minimum wage in order to receive the Business Subsidy. Only jobs meeting this requirement will be credited toward the wage and job goals agreed to between the City and the benefiting business. ' • A provision within the Agreement regarding the creation of jobs may not be required for projects for which the City determines that the creation of jobs is not the primary goal. • In cases where the objective is the retention of existing jobs, the recipient of the Business Subsidy shall be required to provide demonstrable evidence that the loss of those jobs is imminent without the Business Subsidy. • Because it is not possible to anticipate every type of project which may be desirable to the community, the City .Council may, at its sole discretion and in• accordance with applicable law, approve projects and economic development financing assistance· which may vary from the principles and criteria outlined in this Policy. The City· will document any deviations and include the · same with its next annual report to the Department of Employment and Economic Development: Public Notice Requirements Before granting a Business Subsidy that exceeds $25,000, the City must provide public notice and a public hearing on the proposed Business Subsidy consistent with the requirements of Section l 16J.994, Subdivision 5 of the Act. Public notice of a proposed Business Subsidy must be published in the City's official newspaper not less than ten days prior to the public hearing. Monitoring and Reporting The City must monitor the progress by the recipient of a Business Subsidy toward achieving Agreement goals. The recipient must provide infonnation regarding goals and results for two years after the Benefit Date or until the goals are met, whichever is later. If the goals are not met, the recipient must continue to provide infonnation on the subsidy until the subsidy is repaid. The information must be filed on forms developed by the Commissioner of Employment and Economic Development in cooperation with representatives of the City. Subsidy recipients must submit a report meeting the requirements of Section 1 l6J.994, Subdivision 7(b) of the Act to the City not later than March 1 of each year for the previous year. The City must forward copies of the reports filed by recipients to the Commissioner of Employment and Economic Development by the subsequent April 1. If the recipient does not submit its CD-COMDEV-3.4 Business Subsidy Policy Council Directive CD-COMDEV-3.4 Business Subsidy Policy Page4of4 report to the City, the City must mail the recipient a warning within one week of the required filing date. If, after 14 days of the postmarked date of the warning, the recipient fails to provide a report to the City, the recipient must pay the City a penalty if $100 for each subsequent day until the report is filed. The maximum.penalty shall not exceed $1,000. The City, regardless of whether or not they have awarded any business subsidies; must file a report by April 1 of each year with the Commissioner of Employment and Economic Development. The report must include a list of recipients that did not complete the recipient report required and•a list of recipients that have not met their job and wage goals within two years and steps being taken to bring them into compliance or to recoup the subsidy. Adopted by the Woodbury City Council on February 24, 2016, Resolution No. 16-20 CD-COMDEV-3.4 Business Subsidy Policy City of Alexandria TIF Policy v. 2016 Page | 1 ALEXANDRIA ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING POLICY STATEMENT A. Introduction The City of Alexandria (the “City”) and the Alexandria Economic Development Authority (the “EDA”) have received numerous informal inquiries regarding the availability of tax increment financing as set forth in Minnesota Statutes Section 469.174 to 469.179 inclusive. The City and the EDA will consider each request on a case by case basis. In order to evaluate proposals, conserve the time of staff, advisors, developers, the EDA and the City Council, as well as answer preliminary questions, this Policy Statement will set forth basic information for all persons involved. For the benefit of interested parties, this Policy Statement also outlines the general procedures, which need to be followed in creating a tax increment financing district. It is the intent of this Policy Statement to serve as both a procedural and informational guide for all interested persons. Tax Increment financing is not a right, it is a privilege granted by the City. B. Statutory Intent The purpose of the Minnesota Tax Increment Financing Act is to provide a uniform set of standards and procedures for cities and authorities to follow when utilizing tax increment financing in conjunction with Minnesota Statutes 469.001 to 469.047, 469.090 to 469.108 and 469.124 to 469.134. Tax Increment Financing statute requires applicant to meet the “But-for” Test. Before an authority may create a TIF district, the City must make “but-for” findings that (1) the development would not occur without the TIF assistance and (2) that the market value of the TIF development will be higher (after subtracting the value of the TIF assistance) than what would occur on the site, if TIF were not used. C. What is Tax Increment Financing Generally, tax increment financing is a technique which allows cities and authorities in cooperation with private developers to redevelop blighted and deteriorated urban areas, to construct low and moderate income housing, and/or to stimulate local economic growth. A number of Tax Increment Financing (TIF) districts have been created in the City of Alexandria. Basically, TIF is a program, which allows the increase in property taxes generated by a development to pay for the development costs. Tax Increment is not an additional tax. Tax Increment does not affect the calculation of the tax amount; rather, it affects the distribution of the tax. The tax due is calculated the same as for a property that is not in a TIF district, but money that would normally go to the county, city, school, and other special taxing districts is instead diverted to the TIF district. According to the statute, School District 206 and Douglas County are required to be notified of all potential TIF districts and each entity have the right to formally comment on each district to the City. City of Alexandria TIF Policy v. 2016 Page | 2 D. EDA Policy In cases where interested parties are not able to accomplish the desired development or redevelopment without the assistance of tax increment financing the City and EDA may make tax increment financing available. The EDA will review applications for tax increment financing for the following types of districts and with the indicated guidelines: 1. Redevelopment District – removal of substandard structures. a. Parcels consisting of 70% of the area of the district are occupied by buildings or improvements and more than 50% of the buildings are structurally substandard requiring substantial renovation or removal. b. 15% of the area of a parcel must contain improvements to be considered improved. c. An interior inspection, if possible, must be conducted before determining the improvements are substandard. d. Increments can be used for land acquisition, demolition, clearing land, installation of utilities, pollution abatement, rehabilitation and parking and administrative costs. e. Unless there are extensive environmental remediation costs or unless low/moderate income housing is to be constructed, it is the City’s policy to limit the developer to 13 tax increment years for redevelopment projects. 2. Renovation or Removal District – renovation of existing structures. a. Parcels consisting of 70% of the area of the district are occupied by buildings or improvements and 20% of the buildings (excluding out buildings) and 30% of the other buildings are structurally substandard requiring substantial renovation or removal to correct inadequate street layout, incompatible uses, overcrowding of buildings, excessive dwelling unit density, obsolete buildings not suitable for improvements and other hazards to health, safety and general well-being of the community. b. Increments can be used for land acquisition, demolition, clearing land, installation of utilities, pollution abatement, rehabilitation and parking and administrative costs. 3. Soils Correction District – assist in the removal or correction of hazardous substances, pollution, or contaminants. a. The estimated cost of removal exceeds the fair market value of the land before completion of the preparation. City of Alexandria TIF Policy v. 2016 Page | 3 b. Increments can be used for land acquisition, cost of removal or remedial action, and administrative expenses. 4. Housing District – provide housing for low and moderate income families. Rental housing will include rent restrictions as well as income restrictions. a. No more than 20 percent of the squ are footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses , as stated in MS 469.1761 . b. For rental housing the following income and rent restrictions apply: (i) Income Restrictions: One of the following income tests must be met: at least 20% of the units must be occupied by tenants whose income is 50% or less of the area median income or 40% of the units are occupied by tenants with income of 60% or less of the area median income; (ii) Rental Restrictions: For the income restricted units, the rental rates must minimally follow the maximum gross rents by family or bedroom size as established by Minnesota Housing Finance Agency for the Section 42 Tax Credit program. In addition, the City would like desirable amenities which include maintenance free exterior with some brick, one garage stall per unit, air conditioning, elevators, and park areas with playground equipment for non- elderly complexes, storm shelters, and sprinklers. c. For owner occupied housing, 95% of the units must be initially purchased and occupied by persons whose income is equal to 115% or less of the area median family income. It must be demonstrated that the buyer receives the benefit of tax increment. The initial buyer must intend to occupy the property for a minimum number of years as provided for in specific City, EDA or HRA housing programs such as the City Housing Assistance Program to avoid repayment. d. All housing district application may be available for review and comment by the Alexandria HRA in relation with the goals of the City of Alexandria Housing Study. e. Increments can be used for land purchase, site preparation, installation of public improvements, and administrative expenses. f. It is the City’s policy to limit the developer to the number of tax increment years that both rent and income restrictions are enforced but not to exceed 26 years. a. On a case by case basis, the City and EDA have the right to extend the term of the original contract to encourage the preservation of quality units available for affordable housing. City of Alexandria TIF Policy v. 2016 Page | 4 i. Any project that is required to enforce rent and income limitations on their property in participation with other programs is ineligible for an extension of the TIF District contract. ii. No contract will be extended for over five (5) years, or be granted more than 50% of the original increment. g. On a case by case basis, particularly those senior rental housing projects addressing a continuum of care or assisted living, the City and EDA have the right to modify restrictions based on the project and its merits. 5. Economic District – increase employment, preserve tax base or discourage businesses from moving to another state or municipality. a. 85% of the building square footage must be used for manufacturing, warehousing, storage, distribution, tourism (if applicable), research and development. To be eligible for a tourism tax increment financing district, a project must meet the following criteria: i. Be located in a County where the median income is no more than 85 percent of the state median income. ii. Is located in a County in development region 2, 3, 4, or 5, as defined in section 462.385. iii. The City’s population is less than 20,000. iv. The project is to acquire, construct, or rehabilitated for use as a convention and meeting facility that is privately owned, marina, hotel, motel, lodging facility, or non-homestead dwelling unit that in each case is intended to serve primarily individuals from outside the county. b. The developer will execute a Business Subsidy Agreement, specifying the wage and job goals of the project. c. Increments can be used for public improvements, administrative costs, loans, subsidies, and grants. d. In accordance with state statutes, the developer may be eligible for 9 tax increment years. E. Development Objectives The City welcomes and understands that as a community it receives a direct benefit from property designed residential, commercial and industrial development or redevelopment. City of Alexandria TIF Policy v. 2016 Page | 5 In reaching a decision with respect to whether or not to provide tax increment financing for a project, the City Council will consider the following factors: 1. Whether the project will add to the City’s tax base and/or increase employment and wage opportunities. 2. Whether the project will acquire, remove, reconstruct or rehabilitate structurally substandard or blighted areas, which make potential development economically unfeasible. 3. Whether the project will acquire or develop vacant, under used or inappropriately used land which makes potential development economically unfeasible? 4. Whether the project will correct physical deterrents impeding development or provide adequate streets, utilities and other public improvements, which are deemed necessary to enhance the area for both existing and/or new development. 5. Whether the project will provide decent, safe and sanitary housing for low and moderate income persons. 6. Whether the project will assist in the removal and clean up of any polluted properties. F. Application Prior to any consideration by the EDA and the City Council, the applicant must deliver to the City the following: 1. Completed Application for Tax Increment Financing (attached); 2. Letter of Agreement substantially in the form attached; and 3. A processing fee in the amount of $1,500. 4. Financial statements and feasibility studies as required by legal counsel of the City of Alexandria. G. Preliminary Approval The EDA will make a finding, based upon information presented, as to whether the proposed project is consistent with Minnesota Statutes Section 469.174 to 469.179 inclusive and is in the public interest as set forth in Section E of this Policy Statement. If deemed appropriate, the EDA may direct staff and advisors to prepare the tax increment financing plan, amend the development program, if necessary, and prepare supportive documents. After the above finding has been made and after the City has approved a resolution calling for a public hearing on a TIF District, but before work is started on the tax increment financing documents, a partial payment of an additional $3,500 must be submitted to the City. The balance of the legal and consultant fees will be due when the City of Alexandria TIF Policy v. 2016 Page | 6 district is established. The purpose of the EDA Development Program is to provide a legal guide for the planning and implementation of the City and EDA’s development and housing goals and for the creation, if desirable, of tax increment financing districts. The tax increment financing plan is designed to complement the Development Program by providing a framework for assisting the proposed development or redevelopment. As part of the approval process, a feasibility analysis of the project will be reviewed along with appropriate supporting financial analysis. H. Redevelopment Contract To receive tax increment assistance, the applicant will be required to enter into a Redevelopment Contract with EDA. The Redevelopment Contract shall specify the rights and responsibilities of each party with respect to the proposed development. I. Final Approval The development program, the tax increment financing plan, and the redevelopment contract requires approval by the EDA; the development program and tax increment financing plan requires approval by the City Council. A public hearing before the City Council must be held prior to final approval. J. Use of Fees 1. Fees shall be used for the cost of securing appropriate consultants to assist the EDA in processing the inquiry or application. Representatives of appropriate consultants include, but are not limited to, EDA Attorney, Planning Consultant, Development and Financial Consultant, Bond Counsel, Traffic and other consulting engineers. The determination and use of TIF consultants is and remains the exclusive determination of the City of Alexandria. 2. Upon completion of any inquiry or decision on an application for assistance, the EDA shall render a total of all claims and charges paid. The EDA shall refund any outstanding balance. The developer shall be responsible for consultant charges in establishing the district and preparation of any agreements. 3. If the application is approved, the applicant shall be reimbursed in an amount not to exceed its statutorily authorized eligible expenses. Such reimbursement will generally be in the form of a limited tax increment revenue note known as a pay-as-you-go note. 4. The City shall retain a percentage of the increment generated as authorized by the Tax Increment Act for administrative and program expenses. City of Alexandria TIF Policy v. 2016 Page | 7 ALEXANDRIA ECONOMIC DEVELOPMENT AUTHORITY APPLICATION FOR TAX INCREMENT FINANCING Applicant Information: Applicant Name/Representative: Business Name: Address: Telephone #: Fax # Email: Legal Business Structure: If a partnership, state names of all partners. If a corporation, state name and address of agent in the State of Minnesota; specify state of incorporation, location of principal place of business; and list of name and addresses of major stockholders or principals. Name and Contact Number of Legal Counsel: Name and Contact of Accountant: Name, Company, and Contact of Financial Reference: Other Pertinent Information for Application: Have you ever filed for Bankruptcy? Yes No (If yes, provide details on separate sheet) Have you ever defaulted on a loan? Yes No (If yes, provide details on separate sheet) City of Alexandria TIF Policy v. 2016 Page | 8 Description of Project: Project Name: Location of Project: Legal Description with Parcel Number and Physical Address: Nature of Proposed Business: Description of Proposed Project to include land area, square footage of building(s) or improvement(s), type of building(s) and proposed uses in building(s): Description of potential occupant of building(s) proposed. If leased space, provide the target rent per square foot proposed. What is the current zoning of the proposed site: Will a conditional use permit, a variance or any other special use requirements be needed to complete this project? City of Alexandria TIF Policy v. 2016 Page | 9 Total Cost of Project: Please provide the following costs: Item Cost Land -$ Demolition -$ Site Development -$ Contamination Clean-Up -$ Equipment Acquisition & Installation -$ Architectual and Engineering Fees -$ Legal Fees -$ Interest During Construction -$ Initial Bond Reserve -$ City Bond Consultant/attorney -$ City Administrative Expenses -$ Other:-$ Other:-$ Total -$ Anticipated construction period for this project: Start Finish Employment and Wage Information: What is the present employment of the applicant: FTE PTE What is the projected employment of the proposed project for the following time periods: One year after completion: FTE PTE Two-years after completion: FTE PTE Please list the potential employment positions and the corresponding starting wage for the potential project: Position Title Average Starting Wage or Wage Range Tax Increment Request: Describe the Amount and purpose of the requested Tax Increment Financing: City of Alexandria TIF Policy v. 2016 Page | 10 Provide a brief statement of the public purpose and need for tax increment financing for the project and benefits to the City of Alexandria citizens and community due to the proposed project: Please provide a brief statement of how the proposed project will further the goals of the City of Alexandria Comprehensive Plan: Please provide a brief statement of how this development will attract other related development and types of businesses? Will the project acquire, remove, reconstruct, or rehabilitate structurally substandard or blighted areas which make potential development economically unfeasible? Will the project provide decent, safe and sanitary housing for low to moderate income persons? Will the project assist in the removal and clean up of any polluted or contaminated properties? City of Alexandria TIF Policy v. 2016 Page | 11 Application Acknowledgement: The undersigned, a duly authorized representative of the Applicant, hereby certifies that the foregoing information is true, correct and complete as of the date hereof. The Applicant acknowledges and agrees that the $1,500 application fee associated with this request for public financing assistance is nonrefundable. Date: Applicant Representative: Signature: City of Alexandria TIF Policy v. 2016 Page | 12 TAX INCREMENT FINANCING APPLICATION CHECKLIST Schematic Drawing of Property/Project $1,500 Application Fee Letter of Agreement (Sample Enclosed) Project Pro-forma Project Feasibility Study (if applicable) City of Alexandria TIF Policy v. 2016 Page | 13 Date: Honorable President and Member of the Alexandria Economic Development Authority City of Alexandria 704 Broadway Alexandria, MN 56308 RE: Application for Tax Increment Financing Project President and Members of the Alexandria EDA: This Letter of Agreement (the “Agreement”) is given by , as (President/Owner) of , a organized under the laws of the State of Minnesota (the “Applicant”) in connection with the review and consideration of Tax Increment Financing for the project located at (the “Project”). In consideration, the Applicant hereby covenants and agrees as follows: 1. Consulting Services. The City shall have the right to employ legal counsel, bond counsel, accounting, real estate, financial, engineering, architectural, and other consultants to review the proposed Project and all proposed financing therefore in accordance with the policy statement (the “Policy Statement”) attached to this letter. 2. Other Costs and Expenses. The City shall also have the right to allocate and charge to the proposed Project costs and expenses for photocopies, publications, postage and other similar items rendered or incurred with respect thereto. 3. Payment of Costs. The Applicant shall pay all costs, expenses and consulting services incurred by the City with respect to the Project and the issuance of Tax Increment Obligations to finance all or part of the cost thereof, including but not limited to costs and expenses of the types enumerated in paragraphs 1 and 2, whether or not the Project is approved and constructed or the City issues Tax Increment Obligations therefore. The Applicant submits herewith a check in the amount of $1,500, the proceeds of which may be deposited in a savings account by the City and used and disbursed by the City to pay such costs, expenses and consulting services when due. Upon completion of consideration of the Project or the issuance of Tax Increment Obligations therefore, the City shall pay all such costs, expenses and consulting services not otherwise paid from such deposit. The fees advanced by the Applicant and expended for costs, expenses and consulting services may be reimbursed in accordance with the Policy Statement. 4. Termination of Consideration. The EDA shall have the right at any time prior to the adoption of a resolution approving the documents pursuant to which Tax Increment Obligations are to be issued and their issuance, to terminate its consideration of Applicant’s Project and the issuance of Tax Increment Obligations City of Alexandria TIF Policy v. 2016 Page | 14 to finance the cost thereof, without any liability of the City and EDA, their respective officers, employees and agents. Applicant hereby releases the City, EDA and AAEDC, their officers, employees and agents, from any claims or causes of action which it may have against them or any of them for any costs, expenses, losses, damages or liabilities which it may incur in connection with the City’s consideration of the Project; the failure of the City and EDA, in their discretion, to issue Tax Increment Obligations, the construction of the Project; or any other matter or thing of any type or nature whatsoever which may arise in connection with any of the foregoing. 5. Indemnification. Applicant agrees to indemnify and hold the City, EDA, and AAEDC, the officers, employees and agent harmless from and against any and all losses, claims, damages, expenses or liabilities, including attorney’s fees incurred in their defense, to which the City, EDA and AAEDC, the officers, employees and agents or any of them may become subject in connection with the City and EDA’s consideration, issuance or sale of the Tax Increment Obligations for Applicant’s Project and the carrying out of the transactions contemplated by this agreement and any resolution adopted or Agreements executed by the City, EDA and AAEDC in connection with the issuance of Tax Increment Obligations for Applicant’s Project. 6. Assignment. The applicant shall have no right to assign any claimed rights it may acquire by reason of any action taken with respect to the Applicant’s Project and the issuance of Tax Increment Obligation therefore by the City and EDA or their officers, employees or agents. 7. Effective Date. The effective date of the Agreement is , 20 . Sincerely, Name Title City of Alexandria TIF Policy v. 2016 Page | 15 WHAT ARE THE QUALIFYING PUBLIC IMPROVEMENTS? Land Acquisition Site Work Demolition/site clearance Grading/backfilling/compaction Erosion control/Site Pond (underground storage) Paving – cost of base construction up to laying of asphalt Utility Hook Up Traffic Control – Lights/Signs Relocation Expense Public Right-of-Way Costs Lighting Signage Curbs and Driveway Aprons Sidewalks Boulevards Berms Landscaping Interest Cost during Construction Period of Eligible Expenses Administrative Costs Supervision Contractors’ fees Inspection fees Overhead Environmental Costs Assessment Work Program Abatement/Clean up Consultants’ Fees Architectural/Design Engineering Financial Consulting Legal/Bond Counsel City Assessments Sanitary Sewer Storm Sewer Streets Other assessable public improvement costs Contingency KM: 4828-4986-5731, v. 1 REVISED 4/19/2021 CITY OF ROCHESTER POLICY ON DEVELOPMENT INCENTIVES FOR TAX INCREMENT FINANCING AND TAX ABATEMENT I. GENERAL POLICY The purpose of this policy is to establish guidelines and procedures for the provision of development incentives to private businesses. The fundamental purpose of providing development incentives are to encourage the redevelopment of the city's older residential, commercial, and industrial areas; to preserve and expand the city's economic and employment base, and to provide affordable housing. Development incentives may be provided when the city believes that the desired development would not occur without municipal involvement. The city reserves the sole right to accept or reject proposals for development assistance, taking into account the degree to which they adhere to the intent of this policy and any other factors the City Council may wish to consider II. OBJECTIVES Within these stated priorities, the City will consider providing development incentives to private projects to achieve one or more of the following objectives: A. Encourage development or redevelopment consistent with the City of Rochester Comprehensive Plan and the goals and objectives of the City of Rochester. B. To encourage the redevelopment of developed areas through the removal of blight and blighting conditions . C. To retain jobs and/ or increase the number and diversity of quality jobs. D. To provide a balanced and sustainable housing stock and to promote neighborhood stabilization and revitalization. E. To increase the city's tax base. F. To encourage additional unsubsidized private development, either directly, or through secondary "spin-off'' development. G. To provide specific community benefits in addition to those included in these policies. Community benefits may include such things as space for child care center or commercial spaces for small and local businesses and living wage jobs (The wage floor for wages to be paid for the jobs created shall be 110% of the established federal poverty income wage level for a family of four.) for jobs in the project. The specific community benefits will be determined by the type and nature of the proposed development and will be incorporated into the terms of a Development Assistance Agreement and articulated to the City Economic Development Authority (EDA) in the Request for EDA Action. H. To meet other public objectives as determined by the Council. III. PRIORITIES FOR USE OF DEVELOPMENT INCENTIVES (Projects that meet 1, 2 or 3 below are considered to be of equal priority and are a higher priority for the use of development incentives than other projects). 1. Development or redevelopment projects that are included in the Destination Medical Center Development Boundary Area that further the goals and objectives of the plans and research outlined below: a. DMC Development Plan b. Rochester Downtown Master Plan c. DMC District Design Guidelines d. Public Realm Plans e. DMC Transportation Plan f. City of Rochester Comprehensive Plan g. DMC District Market Demand Studies 2. Economic development projects of an industrial or manufacturing nature, that are consistent with the Minnesota Statutes and that create or retain living wage jobs or increase the tax base in the City. 3. Housing TIF District projects must provide for at least 40% of the units to be affordable to persons at 60% area median income or 20% of the units to be affordable to persons at 50% area median income, as required by statute. For Housing TIF District proposed development projects seeking development incentives, priority will be given to those projects that a. Secure other funding sources, such as Housing Tax Credits or Housing Revenue Bonds b. Take advantage of an infill site. c. Are within 1/4 mile of bus stop. d. Are located within 1/2 mile of essential services, including schools, grocery, park and medical facilities that serve the property. e. Are within the 4 minute EMS response time. f. Have no tenant relocation issues associated with the project. g. Single family dwelling owner occupied housing as permitted by Statute. h. Provide rents affordable to persons at or below 50% AMI i. Provide for preservation of existing Naturally Occurring Affordable Housing stock. 4. Other Redevelopment projects. Determination of project approval should consider the following: a. The project site is deemed to be blighted or distressed and in significant need of renovation or redevelopment, as evidenced by brownfield designation, declining property value, several years of high vacancy rates or negative impacts on the surrounding neighborhood; or b. The site's proximity to the downtown core and transit availability; or c. The site is deemed to have a concentration of households to support the proposed use of the site; or d. If the project includes a housing component, a goal of 20 % of the units must be affordable to persons at 60% of the area median income or 10% of the units must be affordable to persons at 50% of the area median income; or if a project consists of only market rate units, that a percentage (to be determined by the Council) of the available tax increments is to be used for affordable housing purposes within the City. e. For projects that do not propose a housing component as part of the project, that 5% of the available tax increments will be utilized for affordable housing purposes within the City. f. The property is within a Qualified Opportunity Zone or other Federal or State economic development incentive zone. 5. Other projects deemed critical to the long range economic development of the City, or as identified for transit oriented redevelopment in the Comprehensive Plan, as determined by the Mayor and City Council. 6. As indicated by City of Rochester Economic Development Authority action taken on August 19, 2019, the development of stand alone hotel projects within the City will not be considered a priority for the use of tax increment financing assistance. IV. RELOCATION ASSISTANCE 1. Prior to the execution of a Development Assistance Agreement (a TIF Plan may be approved) for City TIF assistance, it is the developer's obligation to ensure that appropriate relocation benefits are provided to displaced rental unit tenants whose incomes are at or below the 60% area median income (AMI) and who are otherwise entitled to such benefits under applicable law that have been displaced within the previous 6 months to an application submittal. 2. In order to qualify for the relocation assistance, a tenant must have resided in the unit for a period of 90 days prior to the displacement. 3. For those displaced tenants who do not utilize Housing Choice Vouchers, the relocation assistance amount shall be based upon the monthly difference between the tenant's current monthly rent amount and the maximum monthly gross rents identified by HUD for income levels at or below 50% AMI and number of bedrooms, for a period of 42 months. 4. For those displaced tenants that do utilize Housing Choice vouchers for part of the monthly rent payment, the amount of relocation assistance provided to the tenant would be the difference between the tenant's portion of the current monthly rent payment and any increase in monthly rent that would be the tenant's responsibility, for a period of 42 months. 5. In cases of displaced tenants with special needs, the developer will be obligated to provide additional relocation assistance in an amount to cover the costs of renovating a comparable dwelling unit to accommodate the tenant's needs, with a maximum cap of $20,000 for renovation costs and no more than $25,000 in aggregate, including rental assistance and moving related costs. 6. The developer will be obligated to pay a fixed cost fee per displaced tenant based upon the schedule listed below, which is the MnDOT standard. Residential Moving Expense and Dislocation Allowance Payment Schedule The occupant owns furniture Rooms 1 2 3 4 5 6 7 8 Each Add’l Room Amount $575 $725 $925 $1125 $1325 $1525 $1725 $1925 $275 Residential Moving Expense and Dislocation Allowance Payment Schedule The occupant does not own furniture Rooms 1 Each Add’l Room Amount $450 $100 V. POLICIES 1) To directly link the level of assistance provided to a project to the attainment of the objectives defined above. The level of public assistance provided to a project shall be commensurate with the extent to which the project addresses specific redevelopment, DMC Plan, economic development or housing goals and objectives. Assistance shall be limited to the minimum amount necessary for the successful construction of the project and to address an identified funding gap. 2) To keep the payback period for bonds, loans, abatements, or other forms of assistance to the shortest te1m possible. 3) To structure any assistance in such a manner as to minimize financial risk to the city. Up front bonding will primarily be directed to City owned public infrastructure. All other assistance will be typically done on a "PAYGO" reimbursement basis. 4) To require proposers to provide full disclosure of project information so that the city can assess the need for incentives. 5) To require guarantees and other forms of financial security commensurate with risk incurred by the city. 6) Projects seeking City assistance will be more strongly considered if they meet one of the Sustainable Building Certification Standards as follows : a. For commercial projects: i. LEED for New Construction and Renovation; Certified Silver, Gold or Platinum. ii. State of Minnesota B3 Guidelines; Certified Compliant. b. For residential projects: i. LEED for New Construction and Renovation; Certified Silver, Gold or Platinum. ii. State of Minnesota B3 Guidelines; Certified Compliant. iii. Green Star; Certified Silver , Gold or Platinum iv. [ V. Green Communities; Certified 7) Redevelopment and Economic Development Projects must also meet the standards set forth below. Projects applying for City funding assistance shall also integrate the goals and requirements of the attached Exhibit A (Sustainable Building Appendix) into the project’s application. a. Predicted and actual energy use and greenhouse gas emissions - meet SB 2030 b. Energy Standard through design and operation i. Predicted and actual use of potable water: 30% below Energy Policy Act of 1992 levels c. Predicted and actual use of water for landscaping: 50% reduction from consumption of traditionally irrigated site d. Utilization of renewable energy: Evaluation of 2% of on-site renewables; installation if cost-effective using SB 2030 guidance e. Electric vehicle charging capability: install conduit that allows charging stations to be installed at a future date f. Diversion of construction waste from landfills and incinerators: 75% diversion rate g. Indoor Environmental Quality: Low VOC materials includes paints, adhesives, sealants, flooring, carpet as well as ASHRAE thermal and ventilation minimums h. Stormwater Management: Quantity and quality requirements, including infiltration rate, suspended solid and phosphorous reductions i. Resilient Design: Document a design response to several identified potential shocks such as utility interruption, extreme rainfall and transportation interruption. Design Team shall integrate the identified strategies into the design of the project. j. Participate in the City of Rochester's Voluntary Benchmarking Program for a period of three years after construction is completed to report energy and water consumption of the project k. Performance standards outlined above must be verified by a third party proposed by the Developer and acceptable to the City of Rochester VI. PERMISSIBLE COSTS The city may provide financial incentives to cover any cost permitted by regulation or statute. While the city will consider any eligible cost, it reserves the right to participate in only those costs it deems appropriate. VII. PROVISIONS A. Prior to application submittal for any required City land use / zoning approvals, the Proposers will be required to provide the City with a written notice of intent to seek City assistance and submit project and financial data in sufficient detail to document their need for assistance. Such information may include, but not be limited to, financial statements , project pro-formas, source and use of funds statements , market and feasibility studies and similar documents. B. Projects must be consistent with the city's comprehensive plan, zoning ordinance and other land use policies. Projects not consistent with such plans, ordinances and policies must obtain land use approvals prior to provision of any financial assistance. C. Redevelopment Projects should leverage the maximum private investment possible. Each project will be reviewed to determine funding gap and the level of assistance will be based upon that and the public benefits provided by the project. Desired goals of the City are a maximum city funding of no more than ten (10) years of present value tax increments be provided to the project, except that additional tax increments may be provided for eligible expenses that provide public amenities or benefit, as determined by the City. Projects that are provided more than 10 years of TIF will be required to meet one of the Sustainable Building Certification Standards indicated. Not more than 75% of the estimated project tax increments being provided to the developer on an annual reimbursement basis D. If incentives are to be provided, proposers must submit evidence of private financing satisfactory to the city, or secure the city's costs before the city makes any significant financial commitment to a project E. In the case of tax increment financing projects, prior to the execution of any assistance agreements, the proposer must complete project plans and provide project financial data in sufficient detail to allow the Olmsted County Assessor to estimate the market value of the project upon completion, and provide evidence satisfactory to the City that private financing is secured F. The city may require collateralized guarantees, assessment agreements, and other forms of security to protect the public's investment in the project. The amount of security required will be based on the City's assessment of the risk of the project. G. In evaluating a project, the City may utilize outside legal, financial, real estate, marketing, design and other consultants. Unless waived by the Council, proposers will be required to pay the costs of such consultants. H. In the case of tax increment projects, proposers must agree to provide documentation of actual allowable costs no less than quarterly during project construction. These costs must be categorized as required by the State of Minnesota "Tax Increment Financing Authority Report". I. The City will require that all tax increment projects receiving City funding assistance shall be subject to prevailing wage requirements during project construction for the construction project laborers. In addition, the City of Rochester’s Destination Medical Center Targeted Business Utilization Plan goals for Targeted Business and Workforce Participation and American made steel will also be applicable. VIII. LIMITATIONS A. Development incentives will not be used to support projects that place extraordinary demands on city services and infrastructure, unless such demand is mitigated as part of the project. B. Because tax abatement requires an offsetting levy increase, it will be used in very limited instances, primarily used to encourage development or redevelopment of the central business district or DMC Plan boundary area. Tax abatement will not be used for retail or office projects located outside of the central business district. In limited circumstances, the Council may consider the use of tax abatements to assist manufacturing and technology, housing, historic preservation and public infrastructure projects. For manufacturing and technology projects, tax abatements will be considered only if it is not feasible to provide assistance through tax increment financing and then, only when there is an imminent threat of significant job loss, or when there will be a significant increase in new jobs. C. Where new job creation provides the primary rationale for the granting of development incentives, the city will consider providing assistance to employers paying a living wage, shall consider the number of jobs generated and the wage and benefit levels provided by the Company as factors in determining the amount of assistance for the project. Assistance agreements may include provision for repayment of all or a portion of the assistance granted if, the business fails to either create or maintain the targeted number of jobs at the stated pay level thresholds. D. For Statutory Housing TIF District projects that typically include housing revenue bonds or other state or federal housing assistance, the following guidelines will be considered: 1. For projects that include Housing Tax Credits, Bonds or other State or Federal funding assistance, a threshold of no more than $12,000 / dwelling unit or a maximum of 15 years of available tax increments, whichever is less. 2. For housing projects that meet underserved market needs such as senior housing or special needs supportive housing in the community, a greater threshold of assistance may be considered. 3. Priority for TIF assistance will be given to those housing projects that have been successful in leveraging other sources of funding such as housing tax credits, housing bond funding or other sources, 4. The City reserves the right to limit the number of housing units assisted annually. IX. PROCESS A. Prior to submission of a formal application requesting development incentives and land use / zoning approval, the proposer shall meet with staff to discuss the nature of the proposal and its relationship to the City's and or DMC Plan development goals, objectives, and priorities. Procedures and submission requirements will also be reviewed. For projects located within the DMC Development Plan boundary area, the City/ DMC EDA joint staff application submittal and review process will be followed. B. The proposer shall submit sufficient copies of his / her proposal to the City Administrator for distribution to appropriate officials and staff. C. Staff will review the proposal and submit a written report to the Council and/or City Economic Development Authority (EDA) outlining its findings. The Council and City EDA may accept the proposal, reject it, or indicate to the proposer those modifications to the proposal necessary for continued consideration. D. A recommendation to accept the proposal shall include the basic terms and conditions of an agreement to be entered into by the city and the proposer. E. The terms of the agreement and staff report and recommendation will be presented to the Common Council and/or the City EDA for final action. X. SUBMISSION OF PROPOSALS Proposals for development incentives shall include the following information: A. A completed application form and application fee. B. Qualifications of the proposer including prior experience with similar projects. Qualifications, where applicable, of principal members of development team, including the architect, construction company, and financial advisor. C. Financial capability of the proposer to unde1iake the project. D. Site plans, schematics, and narrative describing the location, type, scope, and size of the project. E. Identification of all public assistance being sought. F. Preliminary analysis showing existing taxes, estimated future taxes, and for economic development projects, the number of new jobs created, by wage level. G. The proposers source and use of funds including any public assistance being requested. H. A preliminary listing of any approvals, pe1mits, licenses or other authorizations required for the project. I. A statement identifying the specific public objectives the project will address. J. A preliminary schedule identifying significant milestone dates leading to the completion of the project. K. Any other pertinent data the city may require. XI. APPLICATION INFORMATION Applicants shall include the information listed in the City or DMCC application form that will be provided. Not all of the information will be needed for every proposal. The applicant will work with city staff to assure all appropriate information is provided. A. A $5,000 application fee must be attached to the application. This fee is designed to cover a portion of the city's costs associated with evaluating the proposal. If warranted by the complexity of the proposal, additional deposits may be required to cover City out of pocket expenses related to the application process. If the project is determined to be a DMC Plan project, the application filing fee shall be $10,000. Roseville Business Subsidy Criteria and Public Financing Policy Page 1 City of Roseville and Roseville Economic Development Authority Public Financing Criteria and Business Subsidy Policy Adopted October 17, 2016 INTRODUCTION: This Policy is adopted for purposes of the business subsidies act, which is Minnesota Statutes, Sections 116J.993 through 116J.995 (the “Statutes”). Terms used in this Policy are intended to have the same meanings as used in Statutes. Subdivision 3 of the Statutes specifies forms of financial assistance that are not considered a business subsidy. This list contains exceptions for several activities, including redevelopment, pollution clean-up, and housing, among others. By providing a business subsidy, the city commits to holding a public hearing, as applicable, and reporting annually to the Department of Employment and Economic Development on job and wage goal progress. 1. PURPOSE AND AUTHORITY A. The purpose of this document is to establish criteria for the City of Roseville and the Roseville Economic Development Authority (“EDA”) for granting of business subsidies and public financing for private development within the City. As used in this Policy, the term “City” shall be understood to include the EDA. These criteria shall be used as a guide in processing and reviewing applications requesting business subsidies and/or City public financing. B. The City's ability to grant business subsidies is governed by the limitations established in the Statutes. The City may choose to apply its Business Subsidy Criteria to other development activities not covered under this statute. City public financing may or may not be considered a business subsidy as defined by the Statutes. C. Unless specifically excluded by the Statutes, business subsidies include grants by state or local government agencies, contributions of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient of the subsidy, any reduction or deferral of any tax or any fee, tax increment financing (TIF), abatement of property taxes, loans made from City funds, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. Roseville Business Subsidy Criteria and Public Financing Policy Page 2 D. These criteria are to be used in conjunction with other relevant policies of the City. Compliance with the Business Subsidy Criteria and City Public Financing Guidelines shall not automatically mean compliance with such separate policies. E. The City may deviate from the job and wage goals criteria outlined in Section 5 D and E below by documenting in writing the reason(s) for the deviation. The documentation shall be submitted to the Department of Employment and Economic Development with the next annual report. F. The City may amend this document at any time. Amendments to these criteria are subject to public hearing requirements contained in the Statutes. 2. CITY’S OBJECTIVE FOR THE USE OF PUBLIC FINANCING A. As a matter of adopted policy, the City may consider using public financing which may include tax increment financing (TIF), tax abatement, bonds, and other forms of public financing as appropriate, to assist private development projects. Such assistance must comply with all applicable statutory requirements and accomplish one or more of the following objectives: 1. Remove blight and/or encourage redevelopment in designated redevelopment/development area(s) per the goals and visions established by the City Council and EDA. 2. Expand and diversify the local economy and tax base. 3. Encourage additional unsubsidized private development in the area, either directly or through secondary “spin-off” development. 4. Offset increased costs for redevelopment over and above the costs that a developer would incur in normal urban and suburban development (determined as part of the But-For analysis). 5. Facilitate the development process and promote development on sites that could not be developed without this assistance. 6. Retain local jobs and/or increase the number and diversity of quality jobs 7. Meet other uses of public policy, as adopted by the City Council from time to time, including but not limited to promotion of quality urban design, quality architectural design, energy conservation, sustainable building practices, and decreasing the capital and operating costs of local government. 3. PUBLIC FINANCING PRINCIPLES A. The guidelines and principles set forth in this document pertain to all applications for City public financing regardless of whether they are considered a Business Subsidy as defined by the Statutes. The following general assumptions of development/redevelopment shall serve as a guide for City public financing: Roseville Business Subsidy Criteria and Public Financing Policy Page 3 1. All viable requests for City public financing assistance shall be reviewed by staff, and, if staff so designates, a third party financial advisor who will inform the City of its findings and recommendations. This process, known as the “But For” analysis is intended to establish the project would not be feasible but for the City assistance. 2. The City shall establish mechanisms within the development agreement to ensure that adequate checks and balances are incorporated in the distribution of financial assistance where feasible and appropriate, including but not limited to: a. Third party “but for” analysis b. Establishment of “look back provisions” c. Establishment of minimum assessment agreements 3. TIF and abatement will be provided on a pay-as-you-go-basis. Any request for upfront assistance will be evaluated on its own merits and may require security to cover any risks assumed by the City. 4. The City will set up TIF districts in accordance with the maximum number of statutory years allowable. However, this does not mean that the developer will be granted assistance for the full term of the district. 5. The City will elect the fiscal disparities contribution to come from inside applicable TIF district(s) to eliminate any impact to the existing tax payers of the community. 6. Public financing will not be used to support speculative commercial, office or housing projects. In general the developer should be able to provide market data, tenant letters of commitment or finance statements which support the market potential/demand for the proposed project. 7. Public financing will generally not be used to support retail development. The City may consider projects that include a retail component provided they meet a Desired Qualification as identified in Section 4.2.C(8) of this policy. 8. Public financing will not be used in projects that would give a significant competitive financial advantage over similar projects in the area due to the use of public subsidies. Developers should provide information to support that assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need. 9. Public financing will not be used in a project that involves a land and/or property acquisition price in excess of fair market value. 10. The developer will pay all applicable application fees and pay for the City and EDA’s fiscal and legal advisor time as stated in the City’s Public Assistance Application. Roseville Business Subsidy Criteria and Public Financing Policy Page 4 11. The City will not consider waiving fees including, but not limited to, building permit fees, park dedication fees, SAC charges, and planning and zoning application fees. The City may consider using SAC credits, to the extent they are available, to off-set a project’s SAC expenses. 12. The developer shall proactively attempt to minimize the amount of public assistance needed through the pursuit of grants, innovative solutions in structuring the deal, and other funding mechanisms. 13. All developments are subject to execution and recording of a Minimum Assessment Agreement. 4. PROJECTS WHICH MAY QUALIFY FOR PUBLIC FINANCING ASSISTANCE A. All new applications for assistance considered by the City must meet each of the following minimum qualifications. However, it should not be presumed that a project meeting these qualifications will automatically be approved for assistance. Meeting the qualifications does not imply or create contractual rights on the part of any potential developer to have its project approved for assistance. 4.1 MINIMUM QUALIFICATIONS/REQUIREMENTS: A. In addition to meeting the applicable requirements of State law, the project shall meet one or more of the public financing objectives outlined in Section 2. B. The developer must demonstrate to the satisfaction of the City that the project is not financially feasible “but for” the use of tax increment or other public financing. C. The project must be consistent with the City’s Comprehensive Plan and Zoning Ordinances, Design Guidelines or any other applicable land use documents. D. Prior to approval of a financing plan, the developer shall provide any requested market and financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other information the City or its financial consultants may require in order to proceed with an independent evaluation of the proposal. E. The developer must provide adequate financial guarantees to ensure the repayment of any public financing and completion of the project. These may include, but are not limited to, assessment agreements, letters of credit, personal deficiency guarantees, guaranteed maximum cost contract, etc. F. Any developer requesting assistance must be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. Public financing will not be used when the developer’s credentials, in the sole judgment of the City, are inadequate due to past history relating to completion of projects, general reputation, and/or bankruptcy, or other problems or issues considered relevant to the City. Roseville Business Subsidy Criteria and Public Financing Policy Page 5 G. The developer, or its contractual assigns, shall retain ownership of any portion of the project long enough to complete it, to stabilize its occupancy, to establish project management and/or needed mechanisms to ensure successful operation. 4.2 DESIRED QUALIFICATIONS: A. Projects providing a high ratio of private investment to City public investment will receive priority consideration. Private investment includes developer cash, government and bank loans, conduit bonds, tax credit equity, and land if already owned by the developer. B. Proposals that significantly increase the amount of property taxes paid after redevelopment will receive priority consideration. C. Proposals that encourage the following will receive priority consideration: 1. Implements the City’s vision and values for a City-identified redevelopment area 2. Provides significant improvement to surrounding land uses, the neighborhood, and/or the City 3. Attracts or retains a significant employer within the City 4. Promotes multi-family housing investment that meets the following City goals: a. Extensive rehabilitation of existing multi-family housing stock b. Demonstration of need for the type of multi-family housing proposed through a market study or other reliable market data. c. Multi-family workforce housing proposals that include amenities similar to those found in market rate housing d. Workforce housing proposals that consider innovative and alternative forms of development and do not include high-rise buildings 5. Provides significant rehabilitation or expansion and/or replacement of existing office or commercial facility 6. Provides opportunities for corporate campus or medical office development 7. Provides opportunity for hi-tech, med-tech, R & D facilities/office or major manufacturer 8. Provides opportunities for small businesses (under 50 employees) that are non, start-up companies 9. Provides opportunities for small businesses that may enhance the quality of life within neighborhoods 10. Redevelops a blighted, contaminated and/or challenged site Roseville Business Subsidy Criteria and Public Financing Policy Page 6 11. Adds needed road, access and multi-modal improvements 12. Addition of specific project enhancements including, but not limited to, architectural upgrades, pedestrian and transit connections, green building practices and enhanced site planning features. 5. BUSINESS SUBSIDY PUBLIC PURPOSE, JOBS AND WAGE REQUIREMENT A. All business subsidies must meet a public purpose with measurable benefit to the City as a whole. B. Job retention may only be used as a public purpose in cases where job loss is specific and demonstrable. The City shall document the information used to determine the nature of the job loss. C. The creation of tax base shall not be the sole public purpose of a subsidy. D. Unless the creation of jobs is removed from a particular project pursuant to the requirements of the Statutes, the creation of jobs is a public purpose for granting a subsidy. Creation of at least 3 Full Time, or Full Time Equivalent (FTE) jobs is a minimum requirement for consideration of assistance. For purposes of this Policy, FTE’s must be permanent positions with set hours, and be eligible for benefits. E. The wage floor for wages to be paid for the jobs created shall be not less than 300% of the State of MN Minimum Wage. The City will seek to create jobs with higher wages as appropriate for the overall public purpose of the subsidy. Wage goals may also be set to enhance existing jobs through increased wages, which increase must result in wages higher than the minimum under this Section. F. After a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals may be set at zero. 6. SUBSIDY AGREEMENT A. In granting a business subsidy, the City shall enter into a subsidy agreement with the recipient that provides the following information: wage and job goals (if applicable), commitments to provide necessary reporting data, and recourse for failure to meet goals required by the Statutes. B. The subsidy agreement may be incorporated into a broader development agreement for a project. C. The subsidy agreement will commit the recipient to providing the reporting information required by the Statutes. 7. PUBLIC FINANCING PROJECT EVALUATION PROCESS Roseville Business Subsidy Criteria and Public Financing Policy Page 7 A. The following methods of analysis for all public financing proposals will be used: 1. Consideration of project meeting minimum qualifications 2. Consideration of project meeting desired qualifications 3. Project meets “but-for” analysis and/or statutory qualifications 4. Project is deemed consistent with City’s Goals and Objectives Please note that the evaluation methodology is intended to provide a balanced review. Each area will be evaluated individually and collectively and in no case should one area outweigh another in terms of importance to determining the level of assistance. CITY OF ST. CLOUD BUSINESS SUBSIDY CRITERIA ADOPTED MAY 9, 2011 The following business subsidy criteria satisfy the requirements of Minnesota Statutes, §§ 1161.993 through 116J.995 (the "Act"). In accordance with the Act, the City caused due notice to be given and held a public hearing on May 9, 2011 allowing all persons attending the public hearing to address the City Council. The City Council adopted these criteria on May 9, 2011 to be applied by the City in determining whether to make grants, loans or provide other assistance to a business. A. BUSINESS SUBSIDY PURPOSE AND RECITALS 1. The Act. The Minnesota State Legislature has enacted the Business Subsidy Act, set forth in Minnesota Statutes Sections 116J.993 through 116J.995, as amended (the "Act"). 2. City. The term "City" means the City of St. Cloud, Minnesota. 3. Requirements. The City is subject to the requirements of the Act for business subsidies granted. The City may not grant a business subsidy until the City has adopted criteria, after a public hearing, for awarding business subsidies that comply with the Act. 4 .. Business Subsidy. The Act defines a business subsidy as a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. 5. Recipient. The Act defines a recipient as any for-profit and certain nonprofit business entities that receive a business subsidy. 6. Project. The term "project" means the property with respect to which the business subsidy is provided. B. BUSINESS SUBSIDY POLICIES 1. The fundamental purpose of business subsidies in the City is to encourage desirable development or redevelopment that would not otherwise occur "but for" the assistance. Business subsidies do not exist to enhance the return on investment for projects that would otherwise occur, but to facilitate development that would not otherwise occur. 2. Any developer that applies for business subsidy assistance may look to these criteria for guidance regarding the City's evaluation of an application. The City will work to maximize the subsidies to those projects that, in the City's judgment, will address the most pressing public purpose. The ability to demonstrate that the project will most likely achieve its stated goals and therefore address the most pressing public purpose will be the primary factor in determining whether a project receives a business subsidy. 3. Because it is not possible to anticipate all the needs and requirements of every type of project and the ever-changing needs of the' community and in order to retain the flexibility necessary to respond to all proposed projects, the City retains the right to approve projects and business subsidies which may vary from the criteria set forth herein. The reason for any deviation from the principles set forth herein will be documented in writing by the City and will be submitted to the Department Employment and Economic Development in accordance with the Act. C. BUSINESS SUBSIDY CRITERIA The City will consider providing business subsidies to projects in an attempt to achieve one or more of the following public purposes, which shall serve as the evaluation criteria: 1. Jobs and Wages. Whether the project will retain local jobs and/or increase the number and diversity of jobs offering stable employment and/or attractive wages and benefits. a. Jobs. The minimum net number of direct full time equivalent jobs to be created or retained by the proposed project for a period of at least two years from the estimated benefit date. b. Payroll. The minimum annual net payroll (including employer contributions for health benefits} to be generated at the end of the third anniversary date of the estimated benefit date. c. Wage. The setting of wage and job goals based on (i) prevailing wage rates, (ii) local economic conditions, (iii) external economic forces over which neither the City nor the recipient of the subsidy has control, (iv) the financial resources of the recipient, and (v) the competitive environment in which the recipient's business exists. 2. Tax Base. Whether the project will enhance and diversity the City's property tax base. a. Property Tax. The net increase in property taxes estimated to be generated by the project after it is fully operational. 3. Land Use. Whether the project will assist in the orderly growth of the community and/or foster a greater sense of community. a. Compliance with Comprehensive or Other Plans. The project/use is more compatible with the comprehensive plan's goals and objectives than other uses of the property allowed by its zoning. b. Marginal Property. The project is located on property which needs, but is not likely, to be developed or redeveloped because of blight or other adverse conditions making site preparation costs exceed the property's fair market value. c. Design and/or Other Amenities. The business subsidy will result in a project including site design, architectural detail, and/or functional amenities not otherwise required by law. 4. Impact on Existing and Future Public Investment. Whether the project provides a return on past public investments or creates opportunity for further public investment in economic development. a. Utilization of Existing Infrastructure Investment. To what extent the project will utilize existing public infrastructure capacity or assist in funding additional public infrastructure necessary to meet the City's economic development objectives. b. Direct Monetary Return on Public Investment. Arrangements made or to be made for the City to receive a direct monetary return on its investment in the project from an interest bearing loan or other revenue sharing arrangement. 5. Economic Development. Whether the project will encourage additional unsubsidized private development in the area of strengthen existing businesses. a. Leveraged Funds. For every dollar of business subsidy to be provided for the project, the minimum amount of private funds which will be applied towards the capital cost of the project. b. Spin Off Development. The dollar amount of non-subsidized development the project is expected to generate in the surrounding area and the need for and likelihood of such spin off development. c. Growth Potential. Based on recipient's market studies and plans for expansion, whether and to what extent the project is expected within five years of its completion, to be expanded to produce a net increase of full time equivalent jobs and of payroll, over and above the minimum net increase in jobs and payroll described in Section 1 above. 6. Quality of Life. Whether the project will provide professional, personal, retail, and/or social services needed in the community. 7. Other. Depending on the nature of the project, such other factors as the City may deem relevant in evaluating the project and the business subsidy proposed for it. D. BUSINESS SUBSIDY REQUIREMENTS All recipients/projects must comply with all the following criteria in order to receive assistance as a business subsidy from the City: 1. But For Test. There is a substantial likelihood that the project would not go forward without the business subsidy. This criterion may be met based solely on representations of the recipient of the business subsidy. 2. Wage Policy. If the project results in the creation of any jobs, the wage for each part-time and full-time job created must for a period of two years from the date assistance is received (as defined in the Act) be at least equal to the federal minimum wage or such greater amount as the City may require for a specific project. 3. Economic Feasibility. The recipient must demonstrate to the satisfaction of the City that it has adequate financing for the project and that the project will be completed in a timely fashion. 4. Compliance with Act. The recipient of the business subsidy from the City must satisfy all requirements of the Act. 5. Reporting. The recipient, regardless of the size of that subsidy, shall be subject to the subsidy reporting requirements set forth by the MN Business Subsidy Law and summarized below: a. Responsibility to Report. The recipient will provide information regarding the goals and results for two years after the subsidy is granted, or until the goals are met, whichever is later. If the goals go unmet beyond two years, then the recipient will provide reports until the subsidy is fully repaid. b. Public Purpose. The recipient will restate in each report the public purpose of the subsidy. c. Wages. The reeipient will report on the hourly wage of each job created by the subsidy. d. Benefits. The recipient will report on the sum of hourly wages and any health insurance provided by the developer. e. Goal Date. Each year the recipient will reassess the date it expects to meet its specific job and wage goals and report what that date is. f. Update. Each year the recipient will provide an informal update on the likelihood that the goals will be achieved and indicate the progress made during the year toward achieving the stated goals. g. Recipient Information. Each year the recipient will report its name, address of itself and any parent corporation. Furthermore, the report will include a summary of all financial assistance received from the Authority or any other organization and any other information the Commissioner of Employment and Economic Development may request. June 21, 2016 Page 1 City of Shakopee, Minnesota BUSINESS SUBSIDY POLICY 1) POLICY PURPOSE For the purposes of this document, the term “City” includes the Shakopee City Council, staff, the Economic Development Authority, advisory boards and commissions, financial consultants and legal counsel. Economic development incentives are financial tools that enable the City to provide opportunities and benefits for its businesses and residents. Incentives can take a variety of forms, including, but not limited to, cash, debt financing, tax and fee waivers, credits and rebates. The City of Shakopee provides economic development incentives in order to achieve its long-range vision of creating a diverse and sustainable economic base. A sustainable economic base is achieved in part through the creation and retention of quality, high paying jobs. A diverse and sustainable economy offers opportunity for improved quality of life for the residents of Shakopee. Economic development projects may also achieve other worthwhile goals. For instance, some projects provide value to the community in the forms of infrastructure improvements, stabilization of business districts or neighborhoods, or concentration of selected industries. This document sets forth the specific criteria the City uses to evaluate a request for Business Subsidy. In adopting these criteria, it is the intent of the City to comply with Minnesota Statutes, Sections 116J.993-116J.995 as amended (the Act). The City hereby adopts the definitions contained in the Act for application of the criteria, and they are incorporated herein by reference. The City has adopted this policy and these criteria after a public hearing in accordance with the Act. The City reserves the right to approve or reject projects on a case-by-case basis, taking into consideration established policies, project criteria, and demand on City services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of business assistance to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City can deviate from this policy for projects that supersede the objectives identified herein. Any applicant who is not in good standing with the City, in regards to licenses, fees or other specific charges, will not be considered for business subsidies. The City may charge a fee for requests under this policy, and these fees will be adopted annually during the fee schedule review. June 21, 2016 Page 2 2) BUSINESS SUBSIDY OBJECTIVES As a matter of adopted policy, the City will consider offering a business subsidy to assist private development projects that achieve one or more of the following objectives: • To increase the City’s tax base. • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. • To encourage new head of household job creation paying at least $19.00/hour (200% of the state minimum wage), exclusive of benefits. Jobs to be retained are not required to meet the above wage standard. After a public hearing, the City may establish wage goals for new jobs to be created that vary from the above standard, and take into account these additional factors; o The size of the business and its potential to create higher paying jobs in the future; o Local economic conditions; • To support projects that provide value in the forms of needed transportation and other utility infrastructure improvements that would be completed in conjunction with the project. • To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development. • To facilitate the development process and to achieve development on sites which would not otherwise be developed but for the use of a business subsidy. • To remove blight and/or encourage redevelopment of commercial and industrial areas that will result in high-quality redevelopment and private reinvestment. • To offset increased costs of redevelopment (i.e. contaminated site clean-up) over and above the costs normally incurred in development. • To create opportunities for affordable housing and/or a diversification of housing stock available within the community. • To support a project that will improve the quality of life in the City by providing a desirable good or service and addressing an unmet demand in the community. • To contribute to the implementation of other public policies, as adopted by the City from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government. • To support the retention and/or adaptive re-use of buildings of historical or architectural significance. • To promote revitalization and redevelopment in the Main Street Corridor. June 21, 2016 Page 3 3) ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS Criteria for these programs are at the discretion of the governing body and may include additional policies and procedures. a. Tax Abatement: The City of Shakopee is granted the power to utilize tax abatement by Minnesota Statutes 469.1812 through 469.1816 as amended and the City of Shakopee Tax Abatement Policy approved on March 18, 2014, authorized by EDA Resolution No. 2014-3 and City Council Resolution No. 7435. The fundamental purpose of tax abatement in Shakopee is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through the tax abatement. The City utilizes “Pay-As-You-Go” Tax Abatement, which relies on the developer to pay for the up-front project costs with reimbursement from tax abatement. b. Tax Increment Financing: The City of Shakopee is granted the power to utilize TIF by the Minnesota Tax Increment Financing Act, Minnesota Statutes 469.174 through 469.1794 as amended and the City of Shakopee Tax Increment Financing Policy approved on March 18, 2014, authorized by EDA Resolution No. 2014-2 and City Council Resolution No. 7434. The fundamental purpose of tax increment financing in the City of Shakopee is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. The City utilizes “Pay-As-You-Go” TIF, which relies on the developer to pay for the up-front project costs with reimbursement from tax increment. c. Metropolitan Council Sewer Availability Charge (SAC) Credit: When new construction or a change in use of a property requires additional sanitary sewer capacity, a fee is charged by the Metropolitan Council-Environmental Services. The fee is based on the Metropolitan Council’s determination of the number of sewer availability charge (SAC) units. d. City of Shakopee Sanitary Sewer Availability Charge (SAC) Credit: In 1994, the City adopted access fees for the sanitary sewer system (SAC). Those fees are used for construction of other MCES interceptors and long-term maintenance of the City sanitary sewer system. For any construction project or change in use, the City SAC is the same as the number of units determined by the Metropolitan Council. However, City fees will be imposed only for the units resulting from an expansion or a change of use that requires additional charges. e. Minnesota Investment Fund: The City of Shakopee is granted the power to utilize the Minnesota Investment Fund Program by Minnesota Statute 116J.8731 as amended. f. Commercial Exterior Improvement Program: The City of Shakopee is granted the power to utilize the Commercial Exterior Improvement Program by the Municipal Commercial Rehabilitation Loan Program, Minnesota Statute 469.184 as amended. June 21, 2016 Page 4 g. Property Sales: The City of Shakopee may negotiate the sale price of property owned by the City or EDA for new or expanding businesses and/or multi-family housing developments. h. Bonds: The City of Shakopee, Minnesota (the “City”) has the authority to issue revenue bonds pursuant to Minnesota Statutes, Sections 469.152 to 469.1651 (the “Industrial Development Act”), Minnesota Statutes, Chapter 462C (the “Housing Act”) and the City of Shakopee Private Activity Revenue Bond Policy approved on June 18, 2013, authorized by City Council Resolution No. 7318. The City Council of the City will consider the issuance of private activity bonds (both taxable and tax-exempt) to finance the following types of projects; manufacturing/industrial facilities, multifamily housing, health care facilities, other projects on behalf of 501(c)(3) organizations and other projects authorized by state statutes and federal law. In extraordinary circumstances, the City Council of the City may consider and approve the issuance of Private Activity Bonds by the Economic Development Authority for the City of Shakopee (the “EDA”). 4) APPLICATION PROCESS a. The applicant will complete and submit the City's Application for Business Subsidy along with the required application fee (refer to the current year’s adopted fee schedule). The application fee covers the City's outside legal counsel review and financial analysis costs. The applicant will also provide any additional information requested by the City. The applicant will be liable for any additional costs beyond the initial deposit. All materials submitted to the City in connection with a business subsidy application shall become the property of the City and is subject to data privacy law. b. City staff or the City's agent shall review the application materials and make a preliminary recommendation to the City regarding the completeness of the application, whether the application meets the goals of this policy, and whether the application complies with the criteria established in the incentive program’s policy. c. When necessary, Public Hearing Notices are published and sent to the county and/or school board. d. In the event that the City concurs with the recommendation above, the City will consider the application during a public meeting. The City will grant final approval or denial of the proposal. e. Additional agreements and program requirements (including annual reporting) may be necessary depending on the form of business subsidy and/or the value of the award, as defined in Minnesota Business Subsidy Statute, Sections 116J.993-116J.995 as amended (the Act). SPRINGSTED Page 1 . Business Subsidy Tax Abatement Tax Increment Financing Policy Prepared by the City of Virginia in partnership with: Springsted Incorporated 85 East Seventh Place, Suite 100 St. Paul, MN 55101 Minnesota Offices Corporate Headquarters 85 East Seventh Place, Suite 100 St. Paul, MN 55101-2887 651.223.3000 651.223.3002 Fax 520 Marquette Avenue, Suite 900 Minneapolis, MN 55402-1122 612.333.9177 612.349.5230 Fax Kansas Office 7211 West 98th Terrace, Suite 100 Overland Park, KS 66212-2257 913.345.8062 913.341.8807 Washington D.C. Office 2121 K Street NW, Suite 800 Washington, D.C. 20037-1829 202.261.6505 202.261.3508 Fax Iowa Office 100 Court Avenue, Suite 204 Des Moines, IA 50309-2257 515.244.1358 515.244.1508 Fax Virginia Offices 1206 Laskin Road, Suite 210 Virginia Beach, VA 23451-5263 757.422.1711 757.422.6617 Fax 12 Culpeper Street Warrenton, VA 20186-3205 540.341.4290 540.349.4713 Fax Wisconsin Office 1001 West Glen Oaks Lane, Suite 108 Mequon, WI 53092-3366 262.241.4422 262.241.4994 Fax advisors@springsted.com www.springsted.com Economic Development Policies City of Virginia, Minnesota Business Subsidy Policy City of Virginia, Minnesota SPRINGSTED Page 2 . Page(s) CITY OF VIRGINIA BUSINESS SUBSIDY POLICY ........................................ 3 A. MANDATORY CRITERIA .......................................................... 3 B. POLICY ..................................................................................... 3 C. PROJECT EVALUATION CRITERIA ........................................ 4 D. ADDITIONAL CONSIDERATIONS ........................................... 6 E. FINANCIAL ASSISTANCE NOT CONSIDERED A BUSINESS SUBSIDY ....................................................................................... 6 CITY OF VIRGINIA TAX ABATEMENT AND TAX INCREMENT FINANCING POLICY .................................................................................................... 8 A. PURPOSE ........................................................................ 8 B. PUBLIC PURPOSE OBJECTIVES .................................... 8 C. POLICY POSITIONS ........................................................ 9 D. PROJECT REQUIREMENTS ............................................ 9 E. APPLICATION PROCESS .............................................. 10 EXHIBIT A: BUSINESS ASSISTANCE APPLICATION ............................ 11 EXHIBIT B: BUSINESS ASSISTANCE REVIEW WORKSHEET FOR COMMERCIAL/INDUSTRIAL PROJECTS ................................................ 16 EXHIBIT C: BUSINESS ASSISTANCE REVIEW WORKSHEET FOR HOUSING PROJECTS .............................................................................. 19 Business Subsidy Policy City of Virginia, Minnesota SPRINGSTED Page 3 . City of Virginia Business Subsidy Policy The following business subsidy criteria are intended to satisfy the requirements of Minnesota Statutes, §§116J.993 through 116J.995 (the "Act"). The term "City" means the City of Virginia. The term "project" means the property with respect to which the business subsidy is provided. A. MANDATORY CRITERIA All projects must comply with the following criteria: 1. But For Test. There is a substantial likelihood that the project would not go forward without the business subsidy. This criterion may be met based solely on representations of the recipient of the business subsidy. 2. Wage Policy. If the project results in the creation of any jobs, the wage for each part-time and full-time job created must be, within two years of the date assistance is received (as defined in the Act), at least equal to 45.45% of the most recent average weekly wage figures for St. Louis County as published by the Federal Bureau of Labor Statistics or such greater amount as the City may require for a specific project. Please Note: if City assists in securing State or Federal Grant dollars, Prevailing Wage laws will apply. 3. Economic Feasibility. The recipient must demonstrate to the satisfaction of the City that it has adequate financing for the project and that the project will be completed in a timely fashion. 4. Compliance with Act. The business subsidy from the City must satisfy all requirements of the Act. B. POLICY 1. The City recognizes that the creation of good paying jobs is a desirable goal which benefits the community. Nevertheless, not all projects assisted with subsidies derive their public purposes and importance solely by virtue of job creation. In addition, the imposition of high job creation requirements and high wage level requirements may be unrealistic and counter-productive in the face of larger economic forces of influence and the financial and competitive circumstances of an individual business. In determining the requirements for a project under consideration for a business subsidy, the determination of the number of jobs to be created and the wage levels therefore will be guided by the following principles and criteria: a. The evaluation of projects will take into consideration the project's importance in and benefit to the community from all perspectives, including created or retained jobs. b. If a particular project does not involve the creation of jobs, but is nonetheless found to be worthy of support and subsidy, assistance may be approved without any specific job or wage goals if permitted by applicable law. c. In cases where the objective is the retention of existing jobs, the recipient of the subsidy will be required to provide evidence which demonstrates that the loss of those jobs is specific and demonstrable. Business Subsidy Policy City of Virginia, Minnesota SPRINGSTED Page 4 . d. The setting of wage and job goals will be informed by (i) prevailing wage rates, (ii) local economic conditions, (iii) external economic forces over which neither the City nor the recipient of the subsidy has control, (iv) the financial resources of the recipient and (v) the competitive environment in which the recipient's business exists. 2. Because it is not possible to anticipate all the needs and requirements of every type of project and the ever-changing needs of the community and in order to retain the flexibility necessary to respond to all proposed projects, the City retains the right to approve projects and business subsidies which may vary from the principles and criteria set forth herein. C. PROJECT EVALUATION CRITERIA The project review and evaluation criteria are the following: 1. Jobs and Wages a. New Jobs. The minimum net number of direct full time equivalent jobs to be created or retained by the proposed project for a period of at least two years from the estimated benefit date. b. Payroll. The minimum annual net payroll (including employer contributions for health benefits) to be generated at the end of the third anniversary date of the estimated benefit date. 2. Tax Base a. Increase in Tax Base. The net increase in property taxes estimated to be generated by the project in the first full year of operation. 3. Land Use a. Compliance with Comprehensive or Other Plans. Whether, apart from any needed services to the community described in section 5 below, the project is more compatible with the comprehensive plan than other permitted uses for the property. For example, the project may involve a "clean" industry such as a technology or service business which is preferred over other permitted uses. b. Marginal Property. Whether the project is located on property which needs but is not likely to be developed or redeveloped because of blight or other adverse conditions of the property. For example property may be so blighted that the cost of making land ready for redevelopment, exceeds the property's fair market value. c. Design and/or Other Amenities. Whether, as a result of the business subsidy, the project will include design and/or amenity features not otherwise required by law. For example, the project may, at the request of the City, include landscaping, open space, public trails, employee work out facilities or day care facilities which serve a public purpose but are not required by law. Business Subsidy Policy City of Virginia, Minnesota SPRINGSTED Page 5 . 4. Impact on Existing and Future Public Investment a. Utilization of Existing Infrastructure Investment. Whether and to what extent (a) the project will utilize existing public infrastructure capacity and (b) the project will require additional publicly funded infrastructure investments. b. Direct Monetary Return on Public Investment. Arrangements made or to be made for the City to receive a direct monetary return on its investment in the project. For example, the business subsidy may be in the form of an interest bearing loan or may involve a project sharing arrangement. 5. Economic Development a. Leveraged Funds. For every dollar of business subsidy to be provided for the project, the minimum amount of private funds which will be applied towards the capital cost of the project. b. Spin Off Development. The dollar amount of non-subsidized development the project is expected to generate in the surrounding area and the need for and likelihood of such spin off development. c. Growth Potential. Based on recipient's market studies and plans for expansion, whether and to what extent the project is expected within five years of its completion, be expanded to produce a net increase of full time equivalent jobs and of payroll, over and above the minimum net increase in jobs and payroll described in section 1 above. 6. Quality of Life a. Community Services. Whether the project will provide services in the community and the need for such services. For example, the project may provide health services, retail convenience services such as a nearby grocery store, or social services needed in the community. b. Natural Environment. Whether the project will add to, or detract from, the environment. The natural environment surrounding our community plays an integral part in the local tourist and forest based economy. It is a reflection of what is important to the community - clean air and water, beautiful scenery, recreational opportunities, and a strong desire to pass along these attributes to future generations. 7. Other a. Other Factors. Depending on the nature of the project, such other factors as the City may deem relevant in evaluating the project and the business subsidy proposed for it. Business Subsidy Policy City of Virginia, Minnesota SPRINGSTED Page 6 . D. ADDITIONAL CONSIDERATIONS The City will give consideration to one or more of the issues listed below in determining whether to provide financial or other assistance to a project as a business subsidy: 1. The City may consider the requirements of any other business subsidy received, or to be received, from a grantor other than the City. 2. If the business subsidy is a guaranty, the amount of the business subsidy may be valued at the principal amount of the guaranteed payment obligation. 3. If the business subsidy is real or personal property, the amount of the subsidy will be the fair market value of the property as determined by the City. 4. If the business subsidy is received over time, the City may value the subsidy at its present value using a discount rate equal to an interest rate which the City determines is fair and reasonable under the circumstances. As used herein "benefit date" means the date the business subsidy is received. If the business subsidy involves the purchase, lease, or donation of physical equipment, then the benefit date occurs when the recipient puts the equipment into service. If the business subsidy is for improvements to property, then the benefit date refers to the earliest date of either: when the improvements are finished for the entire project, or when a business occupies the property. E. FINANCIAL ASSISTANCE NOT CONSIDERED A BUSINESS SUBSIDY The following forms of financial assistance are not a business subsidy as per Minnesota Statutes, §§116J.993, Subd.3: 1. A business subsidy of less than $25,000 as per MN Statutes §§116J.994; 2. Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; 3. Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; 4. Redevelopment property polluted by contaminants as defined in section 116J.552, subdivision 3; 5. Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50 percent of the total cost; 6. Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; 7. Assistance for housing; Business Subsidy Policy City of Virginia, Minnesota SPRINGSTED Page 7 . 8. Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under section 469.174, subdivision 23; 9. Assistance for energy conservation; 10. Tax reductions resulting from conformity with federal tax law; 11. Workers' compensation and unemployment compensation; 12. Benefits derived from regulation; 13. Indirect benefits derived from assistance to educational institutions; 14. Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; 15. Assistance for a collaboration between a Minnesota higher education institution and a business; 16. Assistance for a tax increment financing soils condition district as defined under section 469.174, subdivision 19; 17. Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; 18. General changes in tax increment financing law and other general tax law changes of a principally technical nature; 19. Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; 20. Funds from dock and wharf bonds issued by a seaway port authority; 21. Business loans and loan guarantees of $75,000 or less; and 22. Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. Adopted by: The Virginia City Council Date of Adoption: November 29, 2016 ______________________ Date of Public Hearing: November 15, 2016 Abatement/TIF Policy City of Virginia, Minnesota SPRINGSTED Page 8 . City of Virginia Tax Abatement and Tax Increment Financing Policy A. PURPOSE The purpose of this policy is to establish the City's position relative to the use of Tax Abatement and Tax Increment Financing (TIF), also referred to in this document as the business assistance programs, or business assistance. This policy shall be used as a guide in the processing and review of applications requesting the use of Tax Abatement and Tax Increment Financing. It is the expressed intent of the City to minimize the risk and amount of business assistance to a project and to leverage its public dollars to maximize private sector funding. The City is granted the power to utilize the business assistance programs by Minnesota Statutes 2001 chapters 469.1812 through 469.1815 and chapters 469.174 through 469.1799, as amended. The fundamental purpose of the business assistance programs is to encourage desirable private development or redevelopment, renovation, and reuse within the City that would not occur but for the assistance provided. The City will approve or reject requests for business assistance on a case by case basis taking into consideration established policies, project criteria, and the project’s demonstrated public purpose. Meeting all policy criteria does not guarantee approval of the requested business assistance. The City maintains its ability to approve or deny the request at its discretion. B. PUBLIC PURPOSE OBJECTIVES The City will consider the use of business assistance programs which demonstrate the achievement of one or more of the following public purpose objectives: 1. To encourage the creation of higher wage service, manufacturing type jobs, code compliance, energy efficiency and/or to encourage redevelopment, renovation and reuse of existing buildings and infrastructure. 2. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. 3. To enhance and/or diversify the City's economic base. 4. To encourage additional unsubsidized private (re)development. 5. To remove blight and/or encourage (re)development of commercial and industrial areas. 6. To create housing opportunities for senior and low to moderate income families. 7. To provide a variety of family housing ownership alternatives and housing choices. Abatement/TIF Policy City of Virginia, Minnesota SPRINGSTED Page 9 . 8. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas. 9. To accomplish other public policies which may be adopted such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government, or any of the following:  Utilization of architectural and landscaping techniques that will enable the components of the project to blend with the natural environment.  Mitigation of project impact on the natural environment. C. POLICY POSITIONS 1. Business assistance shall be provided primarily through pay-as-you- go financing in order to minimize the risk of public participation. 2. Business assistance requests for up-front project financing through the sale of bonds or other internal sources will require personal guarantees of the developer. These requests shall be addressed on a case by case basis and be limited to the following highest priority projects:  To encourage the creation of higher wage service, manufacturing type jobs, and/or to encourage redevelopment, renovation and reuse of existing buildings and infrastructure.  Projects proposed which will remediate environmentally contaminated sites where such costs exceed the fair market value of the property. 3. Business assistance shall not be provided for projects without a minimum developer equity injection of 20%. 4. Business assistance shall not be provided for projects requiring land and/or building purchases at prices in excess of fair market value. 5. Business assistance shall only be provided for projects with a demonstrated market demand. 6. Business assistance shall not be provided in cases where it would create an unfair competitive advantage for the assisted project(s). 7. Business assistance shall not be provided to developers/projects that cannot adequately demonstrate an ability to complete the proposed project on time and on budget. D. PROJECT REQUIREMENTS All projects requesting business assistance must demonstrate the following: Abatement/TIF Policy City of Virginia, Minnesota SPRINGSTED Page 10 . 1. That the project is not financially feasible but-for the use of Tax Abatement or Tax Increment Financing. 2. That the project will comply with all provisions set forth in Minnesota Statute chapters 116j.993 through 116j.995, as amended (Business Subsidies). 3. That the business assistance request complies with all provisions set forth in Minnesota Statutes 2001 chapters 469.1812 through 469.1815 as amended (Tax Abatement), and chapters 469.174 through 469.1799 as amended (Tax Increment Financing). 4. That the project is consistent with the City’s comprehensive plan, land use plan, and zoning ordinances. E. APPLICATION PROCESS 1. Applicant submits a Business Assistance Application (Exhibit A) to the City. 2. Staff reviews the application and completes the Application Review Worksheet (Exhibit B/C). 3. Staff submits results of the Worksheet for review by the EDA (commercial/industrial project), or the HRA (housing project), or both if appropriate for a mixed use project. 4. EDA and/or HRA review proposal, provide comments, and make an advisory recommendation to the City Council on denial or approval of the request within 30 days. 5. If advisory approval is granted, staff directs financial and legal consultants to prepare all necessary plans, notices, resolutions and certificates. 6. City Council holds public hearing(s) on the proposed project to consider the advisory recommendation(s). 7. The City Council grants or denies the request. Abatement and TIF Policy City of Virginia, Minnesota SPRINGSTED Page 11 EXHIBIT A BUSINESS ASSISTANCE APPLICATION A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax E-mail Type of business assistance requested (select one): Tax Abatement Tax Increment Financing Have you been, or are you currently, involved in any bankruptcy proceedings or lawsuits related to other development projects with which you have been involved? If yes, please provide an explanation. Yes No On a separate sheet, please provide the following:  Brief description of the corporation/partnership’s business, including history, principal product or service, etc. Attach as Part 1.  List names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. Attach as Part 2.  Brief description of the proposed project. Attach as Part 3.  A but for analysis and narrative. Attach as Part 4. Attorney Name Address Phone Fax E-mail Contractor Name Address Phone Fax E-mail Engineer Name Address Phone Fax E-mail Architect Name Address Phone Fax E-mail Abatement and TIF Policy City of Virginia, Minnesota SPRINGSTED Page 12 B. PROJECT INFORMATION 1. The project will be: (Check all that apply) Industrial: ( New Construction Redevelopment/Rehab Expansion ) Office/research facility: ( New Construction Redevelopment/Rehab Expansion ) Commercial: ( New Construction Redevelopment/Rehab Expansion ) Housing: ( New Construction Redevelopment/Rehab Expansion ) Other 2. The project will be: Owner Occupied Leased Space  If leased space, please attach a list of names and addresses of future tenants and indicate the status of commitments or lease agreements. Attach as Part 5. 3. Project Address  Include Legal Description and PID number(s). Attach as Part 6. 4. Site Plan Attached: Yes No 5. Current Real Estate Taxes on Project Site:$ _____ 6. Estimated Real Estate Taxes Upon Completion: Phase I $__________ Phase II $__________ Phase III $__________ Total $__________ 7. Construction Start Date: __________________ 8. Construction Completion Date: __________________ If Phased Project: % Completed in _____years % Completed in _____years % Completed in _____years Abatement and TIF Policy City of Virginia, Minnesota SPRINGSTED Page 13 C. PUBLIC PURPOSE OBJECTIVES It is the policy of the City of Virginia that the business assistance should result in a public benefit as identified in items 1-11 below. Please indicate how the proposed project will accomplish this by checking the appropriate boxes. Attach additional narrative as Part 7. 1. To encourage the creation of higher wage service, manufacturing type jobs, code compliance, energy efficiency and/or to encourage redevelopment, renovation and reuse of existing buildings and infrastructure. 2. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. 3. To enhance and/or diversify the City's economic base. 4. To encourage additional unsubsidized private (re)development. 5. To remove blight and/or encourage (re)development of commercial and industrial areas. 6. To create housing opportunities for senior and low to moderate income families. 7. To provide a variety of family housing ownership alternatives and housing choices. 8. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas. 9. To accomplish other public policies which may be adopted such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government, or any of the following:  Utilization of architectural and landscaping techniques that will enable the components of the project to blend with the natural environment.  Mitigation of project impact on the natural environment . Abatement and TIF Policy City of Virginia, Minnesota SPRINGSTED Page 14 D. SOURCES & USES OF FUNDS Attach additional information as Part 8 SOURCES AMOUNT Bank Loan $ Other Loans $ Owner Equity $ Fed Grant/Loan $ State Grant/Loan $ Tax Abatement $ Tax Increment Financing $ Industrial Development Bonds $ Other $ TOTAL $ Total Amount of business assistance requested from either Abatement or Tax Increment Financing: $ ____________ USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural/Engineering Fees $ Debt Service Reserve $ Contingencies $ Other $ TOTAL $ Abatement and TIF Policy City of Virginia, Minnesota SPRINGSTED Page 15 E. ADDITIONAL DOCUMENTATION AND CHECKLIST Applicants will also be required to provide the following documentation. All personal financial information will be kept private and confidential. 1. Administrative fee of $10,000. In addition to defraying the cost of staff time, the fee will be used to pay costs associated with processing this request for financial assistance such as legal, engineering and financial analysis. The City reserves the right to stop the processing of the request until additional fees are paid should the original amount be insufficient to pay such costs. That portion which remains unspent, if any, will be returned only if the project is denied approval. 2. Written business plan or a description of the business, ownership/ management, date established, products and services, and future plans. 3. Financial statements for past two years, including profit and loss statements and balance sheets. 4. Two year financial projections, or if housing project, or leased space, include a 10-year operating pro-forma. 5. Personal financial statements of all major shareholders (principals) including the most recent 2 years of tax returns. 6. Letter of commitment from other sources of financing, stating terms and conditions of their participation in the project. 7. Attach the following documentation: Part 1 – Corporation/Partnership Description Part 2 – List of Shareholders/Partners Part 3 – Description of Project Part 4 – But For Analysis Part 5 – List of Prospective Lessees Part 6 – Legal Description, Property Identification Numbers, maps of the project area, and project renderings Part 7 – Public Purpose Narrative Part 8 - Sources & Uses Of Funds The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the City of Virginia to check credit references, verify financial and other information, and share this information with other political subdivisions as needed. The undersigned also agrees to provide any additional information as may be requested by the City after the filing of this application. Applicant Name Date By Its City of Virginia, Minnesota SPRINGSTED Page 16 EXHIBIT B BUSINESS ASSISTANCE REVIEW WORKSHEET FOR COMMERCIAL/INDUSTRIAL PROJECTS TO BE COMPLETED BY APPLICANT AND CITY STAFF 1. The project meets which of the following objectives as set forth in Section C of the Business Assistance policy: 1. To encourage the creation of higher wage service, manufacturing type jobs, code compliance, energy efficiency and/or redevelopment, renovation and reuse. 2. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. 3. To enhance and/or diversify the City's economic base. 4. To encourage additional unsubsidized private (re)development. 5. To remove blight and/or encourage (re)development of commercial and industrial areas. 6. To create housing opportunities for senior and low to moderate income families. 7. To provide a variety of family housing ownership alternatives and housing choices. 8. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas. 9. To accomplish other public policies which may be adopted such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government.  Utilization of architectural and landscaping techniques that will enable the components of the project to blend with the natural environment.  Mitigation of project impact on the natural environment. 2. Ratio of Private to Public Investment in Project: Points: $ Private Investment 5:1 5 $ Public Investment 4:1 4 Ratio Private : Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Job Creation: Points: Net new jobs (minimum 40 hours per week) w/ health insurance benefits 50+ 5 40+ 4 25+ 3 15+ 2 Less than 15 1 City of Virginia, Minnesota SPRINGSTED Page 17 4. Wage Level of jobs created: Points: Average hourly wage Over $21/hour 5 Of new jobs $18-21/hour 4 $14-17/hour 3 $10-13/hour 2 Under $10/hour 1 5. Ratio Of Business Assistance To New Jobs Created: Points: $ Business assistance requested $8,000 or less 5 Number of net new jobs created $10,000 or less 4 $ of business assist. per net new job created $12,000 or less 3 $15,000 or less 2 Over $15,000 1 6. Project size: Points: The project will result in the construction 75,000+ 5 of square feet 60,000+ 4 30,000+ 3 15,000+ 2 15,000 or less 1 7. Type of Project: Points: 100% Owner Occupied 5 Mix Owner Occupied & Investment 3 Investment Property 1 8. Likelihood that the project will result in unsubsidized, spin-off development: Points: High 5 Moderate 3 Low 1 9. What are the estimated total construction costs for the project? Points: $1M - above 5 $500,000 - $1M 4 $200,000 - $500,000 3 $50,000 - $200,000 2 $0 - $50,000 1 11. Project size: Points: The project will result in the redevelopment 25,000+ 5 of square feet 15,000+ 4 5,000+ 3 2,500+ 2 2,500 or less 1 Sub-Total Points _____ of a possible 45 points. City of Virginia, Minnesota SPRINGSTED Page 18 Bonus Points Bonus Points: The project will be 100% pay-as-you-go financing Project is of an Industry Code (NCAIS) not currently within the City limits 5 5 Total Points: Overall project analysis: High 36 - 50 points Moderate 26 - 36 points Mid-Level 16 - 26 points Low 6 - 16 points Not Eligible 0 - 6 points City of Virginia, Minnesota SPRINGSTED Page 19 EXHIBIT C BUSINESS ASSISTANCE REVIEW WORKSHEET FOR HOUSING PROJECTS TO BE COMPLETED BY APPLICANT AND CITY STAFF A. The project meets which of the following objectives as set forth in Section C of the Business Assistance policy: 1. To encourage the creation of higher wage service, manufacturing type jobs code compliance, energy efficiency and/or redevelopment, renovation and reuse. 2. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. 3. To enhance and/or diversify the City's economic base. 4. To encourage additional unsubsidized private (re)development. 5. To remove blight and/or encourage (re)development of commercial and industrial areas. 6. To create housing opportunities for senior and low to moderate income families. 7. To provide a diversity of housing adjacent to the Central Business District. 8. To provide a variety of family housing ownership alternatives and housing choices. 9. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas. 10. To accomplish other public policies which may be adopted such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government.  Utilization of architectural and landscaping techniques that will enable the components of the project to blend with the natural environment.  Mitigation of project impact on the natural environment. B. Ratio of Private to Public Investment in Project: Points: $ Private Investment 5:1 5 $ Public Investment 4:1 4 Ratio Private : Public Financing 3:1 3 2:1 2 Less than 2:1 1 C. Project provides housing that is low-moderate income or restricted to persons 55 years and older: Points: 3 City of Virginia, Minnesota SPRINGSTED Page 20 D. Project provides that at least 30% of the total units are three- bedroom or more: Points: 3 E. Project proposes rehabilitation of existing housing, housing stock, and maximizes utilization of existing infrastructure: Points: 5 F. Project proposes a location within walking distance of existing jobs, transportation, recreation, retail services, social services, and schools: Points: 5 G. Project size: Points: The project will result in the construction or redevelopment 40,000+ 5 of square feet 30,000+ 4 20,000+ 3 10,000+ 2 10,000 or less 1 H. Likelihood that the project will result in unsubsidized, spin- off development: Points: High 3 Moderate 2 Low 1 I. What are the estimated total construction costs for the project? Points: $1M - above 5 $500,000 - $1M 4 $200,000 - $500,000 3 $50,000 - $200,000 2 $0 - $50,000 1 Sub-Total Points of a possible 34 points. City of Virginia, Minnesota SPRINGSTED Page 21 Bonus Points Bonus Points: The project will be 100% pay-as-you-go financing 5 Total Points: Overall project analysis: High 31 - 39 points Moderate 21 - 30 points Low 11 - 20 points Not Eligible 0 - 10 points