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HomeMy WebLinkAbout01/09/2018LAUDERDALE CITY COUNCIL MEETING AGENDA 7:30 P.M. TUESDAY, JANUARY 9, 2018 LAUDERDALE CITY HALL, 1891 WALNUT STREET The City Council is meeting as a legislative body to conduct the business of the City according to Robert's Rules of Order and the Standing Rules of Order and Business of the City Council. Unless so ordered by the Mayor, citizen participation is limited to the times indicated and always within the prescribed rules of conduct for public input at meetings. 1. CALL THE MEETING TO ORDER 2. ROLL CALL 3. APPROVALS a. Agenda b. Minutes of the December 12, 2017 City Council Meeting c. Claims Totaling $130,659.65 4. CONSENT a. November Financial Report b. Designate Official Depository and Investment Institutions — Resolution No. 010918A c. Tobacco and Alcohol Licenses — Resolutions No. 010918C and No. 010918D 5. SPECIAL ORDER OF BUSINESS/RECOGNITIONS/PROCLAMATIONS 6. INFORMATIONAL PRESENTATIONS / REPORTS a. City Council Updates 7. PUBLIC HEARINGS Public hearings are conducted so that the public affected by a proposal may have input into the decision. During hearings all affected residents will be given an opportunity to speak pursuant to the Robert's Rules of Order and the standing rules of order and business of the City Council. 8. DISCUSSION / ACTION ITEM a. Resolution Finding that Modification to the Development Program and Tax Increment Financing Plan Conform to the General Plans for Development and Redevelopment of the City — Resolution No. 010918B b. Memorandum of Understanding to Amend Union Agreements with AFSCME Council 5 c. Committee Appointments and Designations 9. ITEMS REMOVED FROM THE CONSENT AGENDA 10. ADDITIONAL ITEMS a. Resolution Authorizing Interfund Loan in Connection with Tax Increment Financing District No. 1-2 — Resolution 010918E 11. SET AGENDA FOR NEXT MEETING a. Update on Jurisdictional Change for Roselawn Avenue and Eustis Street b. Public Hearing for Patsy's Prospect Hill Lot Split c. Public Hearing on the Modification to the Development Program for Development District No. 1 and the Proposed Establishment of Tax Increment Financing District No. 1-2, and the Proposed Adoption of a Tax Increment Financing Plan d. Comprehensive Plan Work Session 12. WORK SESSION a. Opportunity for the Public to Address the City Council Any member of the public may speak at this time on any item not on the agenda. In consideration for the public attending the meeting, this portion of the meeting will be limited to fifteen (15) minutes. Individuals are requested to limit their comments to four (4) minutes or less. If the majority of the Council determines that additional time on a specific issue is warranted, then discussion on that issue shall be continued at the end of the agenda. Before addressing the City Council, members of the public are asked to step up to the microphone, give their name, address, and state the subject to be discussed. All remarks shall be addressed to the Council as a whole and not to any member thereof. No person other than members of the Council and the person having the floor shall be permitted to enter any discussion without permission of the presiding officer. Your participation, as prescribed by the Robert's Rules of Order and the standing rules of order and business of the City Council, is welcomed and your cooperation is greatly appreciated. b. Community Development Update 13. ADJOURNMENT LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 1 of 4 December 12, 2017 Roll Call Mayor Gaasch called the Regular City Council meeting to order at 7:31 p.m. Councilors present: Jeff Dains, Kelly Dolphin, Andi Moffatt, and Mayor Mary Gaasch. Councilors absent: Roxanne Grove. Staff present: Heather Butkowski, City Administrator; Jim Bownik, Assistant to the City Administrator; and Miles Cline, Deputy City Clerk. Approvals Mayor Gaasch asked if there were any changes to the meeting agenda. Mayor Gaasch stated that she would like to add a staff appreciation item to the Additional Items section. There being nothing else, Councilor Dains moved and seconded by Councilor Moffatt to approve the agenda as amended. Motion carried unanimously. Mayor Gaasch asked if there were any changes to the meeting minutes. There being none, Councilor Dains moved and seconded by Councilor Dolphin to approve the minutes of the November 28, 2017, City Council Meeting. Motion carried unanimously. Mayor Gaasch asked if there were any questions on the claims. There being none, Councilor Moffatt moved and seconded by Councilor Dains to approve the claims totaling $79,518.29. Motion carried unanimously. Consent Councilor Dolphin moved and seconded by Councilor Dains to approve the Consent Agenda thereby approving the year end accounts payable authorization, adoption of the 2017 Fee Schedule — Resolution 121217A, and hiring Warming House attendants. Informational Presentations/Reports A. City Council Updates Councilor Dains shared that the Cable Commission has hired a search firm to recruit a new executive director for CTV North Suburbs. Mayor Gaasch stated that she attended a joint meeting between the League of Minnesota Cities and Metro Cities. Public Hearings A. Truth in Taxation Hearing Regarding the 2018 Budget and Levy Administrator Butkowski presented the Council with the final draft 2018 Budget and Levy. This included the 2018 General Fund, 2018 Special Revenue Funds, and the 2018-2027 Capital Improvement Plan. LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 2 of 4 December 12, 2017 Mayor Gaasch opened the floor to anyone in attendance that wanted to address the Council at 7:40 p.m. There being no interested parties to speak, Mayor Gaasch closed the floor at 7:41 p.m. Councilor Moffatt moved to adopt Resolution 121217B — A Resolution Adopting the 2018 Final Property Tax Levy. The motion was seconded by Councilor Dains and carried unanimously. Councilor Dolphin moved to adopt Resolution 121217C — A Resolution Adopting the 2018 Final Budget and Establishing Fund Appropriations. The motion was seconded by Councilor Dains and carried unanimously. Discussion/Action Items A. 2018 City Council Meeting Schedule Annually, the City Council sets its meeting schedule for the year. Historically, the Council meets on the second and fourth Tuesdays of the month excluding holidays that conflict with the schedule. Staff presented a proposed meeting schedule for 2018. Councilor Dains moved, and seconded by Councilor Moffatt, to adopt the 2018 City Council Meeting Schedule as presented. Motion carried unanimously. B. Setting of Recycling, Sanitary Sewer, and Storm Sewer Rates The Council discussed the Utility Rate Study at the previous council meeting. Staff proposed increases for 2018: a 1.7% increase to the sanitary sewer rate resulting in a residential flat rate of $55.01 and a commercial consumption rate of $2.72; a 1.4% increase to the storm water rate resulting in a flat rate of $16.25 per quarter per residential equivalency factor; and a 5% increase to the recycling collection rate resulting in a flat rate of $2.98 per residential unit per month. Councilor Moffatt moved to adopt Resolution 121217D — Establishing 2018 Sanitary Sewer Rates, Storm Sewer Rates, and Recycling Rates. The motion was seconded by Councilor Dolphin and carried unanimously. C. Accepting Donation from the Chinese Church The City received a donation from the Twin Cities Chinese Christian Church and has the option of adopting the resolution and thus accepting the donation, or declining the donation and returning it to the owner. After discussion, the Council decided to accept the donation and direct it towards the park fund. Councilor Moffatt moved and seconded by Councilor Dolphin to adopt Resolution 121217E Accepting the Donation from the Twin Cities Chinese Christian Church. Motion carried unanimously. LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 3 of 4 December 12, 2017 D. Commercial Building Official Compensation Duane Grace, the Commercial Building Official for the City of Lauderdale, has historically been paid through plan review fees when there are commercial plans to review. The majority of commercial projects this year did not include plan reviews but other time intensive work dealing with roofing projects and issues of noncompliance, so staff has comprised a payment plan to properly compensate his work. The proposal includes paying commercial plan review fees collected, a flat fee of $500 for responding to questions from perspective buyers of the Chinese Christian Church, and 85% of the commercial building permit fees when there was no plan review. This totaled $3,592.32 and was in line with previous year compensation. Councilor Moffatt moved and seconded by Councilor Dolphin to pay Duane Grace per the compensation plan noted above. Motion carried unanimously. Additional Items A. Appreciation Days for Employees Mayor Gaasch voiced her appreciation for the Lauderdale City Staff for their work through the challenging times of 2017. In recognition, she proposed that staff be granted two personal days that must be used by January 20, 2018. Council Dains moved and seconded by Councilor Dolphin to grant two personal days to Lauderdale staff members to be used by January 20, 2018. Motion carried unanimously. Set Agenda for Next Meeting Administrator Butkowski stated that the next council meeting may include the November Financial Report, 2018 Investment Policy, Designating Official Depository and Investment Institutions, Tobacco and Alcohol Licenses, Committee Appointments and Assignments, and Designating the Official Newspaper. Work Session A. Opportunity for the Public to Address the City Council Mayor Gaasch opened the floor to anyone in attendance that wanted to address the Council. There being no interested parties to speak, Mayor Gaasch closed the floor. B. Discuss Sale of 1821 Eustis Street Tim Labey and his associates addressed the Council to discuss two separate properties on Eustis Street. The first property is located at 1825 Eustis Street which they are in the process of purchasing. The second property is located at 1821 Eustis Street and is owned by the City. He shared his design concepts with the Council of what they would like to build at the 1825 address with hopes that the Council would be interested in selling them the 1821 property. After LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 4 of 4 December 12, 2017 discussing, the Council directed staff to further explore the possible sale in terms expectations of the completed product and begin drafting a purchase and development agreement. C. Eustis Street Update with City Engineer City Engineer Darren Amundsen approached the Council to give an update on the possible acquisition of certain segments of Eustis Street and Roselawn Avenue managed by Ramsey County. There are still some items to be resolved and a gap between the price of reconstruction and their level of compensation for taking ownership of the road. He will continue to work with the county to get closer to a resolution. D. Community Development Update Butkowski informed the Council that staff is working on the purchase agreement for the Chinese Christian Church, the adjustor is reviewing the damage at the City's building on Larpenteur Avneue, Goat Dispatch submitted a quote for invasive species management in the Nature Area, and the Fulham Street lot split is moving forward. Adjournment Councilor Dains moved and seconded by Councilor Moffatt to adjourn the meeting at 8:54 p.m. Motion carried unanimously. Respectfully submitted, Miles Cline Deputy City Clerk CITY OF LAUDERDALE LAUDERDALE CITY HALL 1 891 WALNUT STREET LAUDERDALE, MN 551 13 651-792-7650 651-631-2066 FAx Request for Council Action To: Mayor and City Council From: City Administrator Meeting Date: January 09, 2018 Subject: List of Claims The claims totaling $130,659.65 are provided for City Council review and approval that includes check numbers 25640 to 25681. Accounts Payable Checks by Date - Detail by Check Date User: Printed: miles.cline 1/5/2018 3:59 PM Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount ACH 43 ACH 44 ACH 45 ACH 46 25640 20 392466 392466 392466 25641 34 25642 65 15062857 Public Employees Retirement Association 12/29/2017 PR Batch 52600.12.2017 PERA Coordinated PR Batch 52600.12.2017 PER PR Batch 52600.12.2017 PERA Coordinated PR Batch 52600.12.2017 PER Total for this ACH Check for Vendor 43: Minnesota Department of Revenue PR Batch 52600.12.2017 State Income Tax 12/29/2017 PR Batch 52600.12.2017 Stab Total for this ACH Check for Vendor 44: ICMA Retirement Corporation PR Batch 52600.12.2017 Deferred Comp 12/29/2017 PR Batch 52600.12.2017 Def( Total for this ACH Check for Vendor 45: Internal Revenue Service PR Batch 52600.12.2017 Federal Income Tax PR Batch 52600.12.2017 Medicare Employer Po PR Batch 52600.12.2017 FICA Employer Portio: PR Batch 52600.12.2017 Medicare Employee Pc PR Batch 52600.12.2017 FICA Employee Portio Abdo Eick & Meyers LLP 2017 Audit 2017 Audit 2017 Audit AFSCME MN Council 5 PR Batch 52500.12.2017 Union Dues Allstream Inc. Fax Line 12/29/2017 PR Batch 52600.12.2017 Fed( PR Batch 52600.12.2017 Mee PR Batch 52600.12.2017 FIC. PR Batch 52600.12.2017 Mee PR Batch 52600.12.2017 FIC. Total for this ACH Check for Vendor 46: 25643 33 City of Falcon Heights 122017 Fire Inspections 122017 SkFun Run/Parks and Rec Reimbursement 25644 36 0224012 0224060 City of Roseville December IT Services December Phone Services 12/29/2017 Total for Check Number 25640: 12/29/2017 PR Batch 52500.12.2017 Unic Total for Check Number 25641: 12/29/2017 Total for Check Number 25642: 12/29/2017 Total for Check Number 25643: 12/29/2017 1,057.70 916.67 1,974.37 588.67 588.67 1,503.29 1,503.29 1,391.52 228.40 976.65 228.40 976.65 3,801.62 750.00 3,500.00 750.00 5,000.00 194.96 194.96 51.47 51.47 800.00 182.39 982.39 521.25 94.24 AP Checks by Date - Detail by Check Date (1/5/2018 3:59 PM) Page 1 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 25645 25 EMCOM-006554 EMCOM-006566 EMCOM-006581 EMCOM-006617 EMCOM-006629 EMCOM-006644 PRRRV-000744 RISK -001895 25646 38 473544 473544 473544 25647 19 75644 75656 25648 60 2277524-11 2277524-11 25649 61 7110514 25650 8 2017 25651 82 42058 25652 134 0071 25653 31 140768 140768 140768 County of Ramsey PR Batch 52500.12.2017 Life Insurance PR Batch 52500.12.2017 Long Term Disability PR Batch 52500.12.2017 Short Term Disability November Fleet Support November 911 Dispatch Services November CAD Services December Fleet Support December 911 Dispatch Services December CAD Services Truth in Taxation Notice Insurance Processing Fee Croix Oil Company Inc. December Fuel December Fuel December Fuel Ehlers and Associates Inc Consulting Services Consulting Services G & K Services Inc November Uniforms November Uniforms Gopher State One Call November Locates Duane Grace 2017 Commercial Plan Reviews Home Depot Cleaning Supplies Katrina Joseph November Legal Services Kennedy & Graven Chartered TIF District 1-2 Legal Patsy's Prospect Hill Replat November Legal Services Total for Check Number 25644: 12/29/2017 PR Batch 52500.12.2017 Life PR Batch 52500.12.2017 Lon; PR Batch 52500.12.2017 Shw Total for Check Number 25645: 12/29/2017 Total for Check Number 25646: 12/29/2017 Total for Check Number 25647: 12/29/2017 Total for Check Number 25648: 12/29/2017 Total for Check Number 25649: 12/29/2017 Total for Check Number 25650: 12/29/2017 Total for Check Number 25651: 12/29/2017 Total for Check Number 25652: 12/29/2017 615.49 310.08 97.69 67.58 6.24 1,280.65 258.44 6.24 1,280.65 258.44 158.54 25.00 3,749.55 128.10 27.45 27.45 183.00 • 4,700.00 117.50 4,817.50 121.85 . 121.85 243.70 22.95 22.95 8,510.46 8,510.46 66.41 66.41 925.00 925.00 2,275.00 379.50 1,092.63 AP Checks by Date - Detail by Check Date (1/5/2018 3:59 PM) Page 2 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 25654 23 Total for Check Number 25653: 3,747.13 Metro Sales Inc 12/29/2017 1NV960800 4Q 2017 Copier Fees 194.61 25655 140 Total for Check Number 25654: 194.61 Minnesota Department of Agriculture 12/29/2017 2018 Tree Care Registry 25.00 25656 26 Stantec Consulting Services Inc 1294857 Eustis & Roselawn Transfer 1294857 Sewer Lining Project Total for Check Number 25655: 25.00 12/29/2017 1,453.50 700.00 Total for Check Number 25656: 2,153.50 • 25657 162 Swanson Haskamp Consulting 12/29/2017 566 Comprehensive Plan Pay 7 2,175.00 Total for Check Number 25657: 2,175.00 25658 4 The Neighborhood Recycling Company Inc 12/29/2017 17369 November Recycling Contract 17369 November Revenue Sharing 25659 3 345768618 2,396.16 -69.88 Total for Check Number 25658: 2,326.28 US National Equipment Finance Inc 12/29/2017 December Copier Contract 149.00 25660 90 Verizon Wireless 9797219980 November Cell Phone 9797219980 November Cell Phone 9797219980 November Cell Phone Total for Check Number 25659: 149.00 12/29/2017 16.35 16.35 32.70 Total for Check Number 25660: 65.40 25661 74 Xcel Energy 12/29/2017 571703339 November Street Lighting 431.56 571919442 1885 Fulham Street 43.77 571919442 1917 Walnut Street 41.36 571919442 1885 Fulham Street 32.47 571919442 1917 Walnut Street 83.47 25662 13 5557 8th Day Landscaping LLC December Snow Removal 25663 21 Accela Inc 012018 2018 Membership Total for Check Number 25661: Total for 12/29/2017: 01/09/2018 Total for Check Number 25662: 01/09/2018 632.63 44,699.38 645.00 645.00 100.00 AP Checks by Date - Detail by Check Date (1/5/2018 3:59 PM) Page 3 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount Total for. Check Number 25663: 100.00 25664 56 James Bownik 01/09/2018 012018 Mileage Reimbursement 58.42 Total for Check Number 25664: 58.42 25665 - 149 Centro Business Forms Inc 01/09/2018 214334 Tax Forms 106.09 25666 33 City of Falcon Heights 0118 December Fire Calls 012018 Fire Inspections 25667 29 City of St Anthony 3618 January Police Services 25668 133 Miles Cline 4Q2017 Mileage Reimbursement Total for Check Number 25665: 106.09 01/09/2018 1,144.21 150.00 Total for Check Number 25666: 1,294.21 01/09/2018 57,730.66 Total for Check Number 25667: 57,730.66 01/09/2018 Total for Check Number 25668: 25669 164 Dalco Enterprises Inc 01/09/2018 3265343 Paper Towels 25670 177 DVS 012018 Vehicle Registration Renewal -'16 Ford 012018 Vehicle Registration Renewal -'12 Ford 27.36 27.36 130.66 Total for Check Number 25669: 130.66 01/09/2018 16.00 16.00 Total for Check Number 25670: 32.00 25671 61 Gopher State One Call 01/09/2018 7120513 December Locates 9.45 Total for Check Number 25671: 9.45 25672 1 Lillie Suburban Newspapers Inc 01/09/2018 012018 Publish Ordinance 17-05 58.00 25673 114 Metro Cities 38 2018 Dues Total for Check Number 25672: 58.00 01/09/2018 1,188.00 Total for Check Number 25673: 1,188.00 25674 99 Metropolitan Area ManagementAssociatior 01/09/2018 2656 2018 Membership Dues - HB 45.00 25675 24 Metropolitan Council 0001075648 January Wastewater Treatment 0001076822 February Wastewater Treatment Total for Check Number 25674: 45.00 01/09/2018 10,846.48 10,846.48 AP Checks by Date - Detail by Check Date (1/5/2018 3:59 PM) Page 4 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount Total for Check Number 25675: 21,692.96 25676 79 Minnesota Department of Labor & Industry 01/09/2018 DEC1230252017 4Q2017 Surcharge Report 165.78 Total for Check Number 25676: 165.78 25677 112 Minnesota Pollution Control Agency 01/09/2018 012018 MS4 General Stormwater Permit Application 400.00 25678 40 Truck Utilities Inc 0319285 Hydraulic Couplers Total for Check Number 25677: 400.00 01/09/2018 17.00 Total for Check Number 25678: 17.00 25679 77 United States Postal Service 01/09/2018 012018 2018 Newsletter Postage 1,500.00 Total for Check Number 25679: 1,500.00 25680 110 University of Minnesota 01/09/2018 012018 Shade Tree Short Course - DH & GB 420.00 Total for Check Number 25680: 420.00 25681 7 Waste Management Inc 01/09/2018 7782204-0500-6 January Public Works Total for Check Number 25681: Total for 1/9/2018: 339.68 339.68 85,960.27 Report Total (46 checks): 130,659.65 AP Checks by Date - Detail by Check Date (1/5/2018 3:59 PM) Page 5 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution Work Session Meeting Date January 9, 2018 ITEM NUMBER November Financial Report STAFF INITIAL 42 APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Every month I provide the Council with an updated copy of the city's finances. Following are the revenue, expense, and cash balance reports for November 2017. OPTIONS: STAFF RECOMMENDATION: By approving the consent agenda, the Council acknowledges the city's financial report for November 2017. COUNCIL ACTION: General Ledger Cash Balances User: heather.butkowski Printed: 12/20/2017 4:10:09 PM Period 11 - 11 Fiscal Year 2017 Description Account Beg Bal MTD Debit MTD Credit Current Balance Cash 101-00000-000-10100 -2,388,128.98 200,754.50 130,946.28 -2,318,320.76 Change Fund 101-00000-000-10300 100.00 0.00 0.00 100.00 Cash 226-00000-000-10100 11,564.61 83.51 598.67 11,049.45 Cash 227-00000-000-10100 95,052.78 19,261.97 3,896.61 110,418.14 Cash 401-00000-000-10100 97,734.15 107.69 0.00 97,841.84 Cash 403-00000-000-10100 443,841.53 489.04 0.00 444,330.57 Cash 404-00000-000-10100 273,649.09 296.12 4,900.00 269,045.21 Cash 405-00000-000-10100 34,303.91 37.80 0.00 34,341.71 Cash 414-00000-000-10100 216,988.78 81,453.47 0.00 298,442.25 Cash 602-00000-000-10100 993,809.41 15,088.42 15,702.48 993,195.35 Cash 603-00000-000-10100 349,582.50 9,774.87 5,455.82 353,901.55 Current Assets 128,497.78 327,347.39 161,499.86 294,345.31 Petty Cash 101-00000-000-10200 300.00 0.00 0.00 300.00 Petty Cash 300.00 0.00 0.00 300.00 Investments - Fair Value 101-00000-000-10410 2,787,543.36 3,395.61 0.00 2,790,938.97 Adj Investments 2,787,543.36 3,395.61 0.00 2,790,938.97 Grand Total 2,916,341.14 330,743.00 161,499.86 3,085,584.28 GL - Cash Balances (12/20/2017 - 04:10 PM) Page 1 YTD Balanc z ,--� 00 M VD CD' p O �0 C V) v1 d\ O oo O N [� N O r- V) N 'd O O 00 OA V) C O 4\ .-. 0,1 t` 00 r` 0 4 h 0 M M V7 M N .--� N '006NOQri M rt. Ort V-1 ON M ,--i V) Vl Nun m 0,1. 4N C N o CD M C,oo [�O p O 00 oci ,43 4 O r t CT m p O 00 MON p N CO 0) O 7 hl [- O rt MO OI VD VD Cr) V7 M t` rr p VD 0N cn O VD 4 0 O H ON 00 V) v) r - rt N 00 N rt M O O rt M (-• .--i N N 1--1 • N r- CAO O • N N O p N M 0\0 0 N VI p N L 0p M M M b0 t` co 31,612,942.00 el 00 00 00 --+ N M CA CA CD r- CA '0 (6O) VD N 00 M O p( M M U\ CO O .-. O\ M N 0 0\ V) O [t M OT O rt 00 1O M 00 �-4 UN0 1 O 4 M 00 CA 400 N 00 �O m N M ^-+ N O r- O\ N 00 D\N 00 H l� 0 0 0 0 0 0 p O O O O O O O O O O O O O O p O 0 0 0 0 O O O 00 00 NOO O N -'.n 0V 0 p 1A 0 0 0 0\ O VD O M p CA 00 O O CA m .-+VM'N M '0NO 00 M l- V1 M M 6\ M e-1 �-I cn U cn 7 U O cn bq O a 0 N o U R a) U c• d '01 • vl 10 O ▪ c C4 O a 3 0) y ❑ w m N 0 0 cd A q 00 , N W a) h O • 67 .-. • Vl cf)a) Q C) • J ,n A m X O N -+ N U U aJ • N O pa N •=+ Q) O¢, a) a0) a) m.9 c C. ▪ 4, • k aa)i o Z7xH.a4U•w" o x waac.)000 w o U ccs GL - Revenue vs Expense (12/20/2017 - 04:26 PM) YTD Balance V o 00 00 CO In M O opo v 't 0 0 00 0000 M 0 Cr, 01 17 ON • c O N U M M M 000 N N 00 N N M ' M p p N 00 M 0 O - M i ,--, 00 ME— y:, M ` t— N j '-1 t!) - ‘.0 OO p 0 0 0rn O O O In 0 000 p O ONNOd0- p N t` N T N d a) 0) (1.) m 0 O 0) =• 2 2 •• � CI) G.' d w O a, N „y.., 67 g W P. ra 0 U W H \D H CT L el 00 7 0 0 0 0 M N • 00 N GL - Revenue vs Expense (12/20/2017 - 04:26 PM) 34 o N N• N N �) • O 0N 0•p 0 aw 0 U count Number C\ v o 0 o O r- 06 6 L tr) '1 N O O O H h O \O bNi OIn Ni 71:, M Vi vi 00 NOOOr N)--I-I M V 0 1 O. 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C4 a y o x i > a° ''ate o. 0 a A CI waHo g WaOUO w w cl Q) tko fa, 1..--1 jp N Q) �c)�NO -i 4 N t z 1) N ,-. ,-y = 0 L.; 49 o c3 O 0 U N G' V U P4 a a'w" d a 0, GL - Revenue vs Expense (12/20/2017 - 04:26 PM) 7 N 7 00 N N O V) O 00 00 V) O O N ti O N 00 N O \D N e t� t- N 7 J::3,‘ v\ un ton vO t - M GL - Revenue vs Expense (12/20/2017 - 04:26 PM) LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution X Work Session Meeting Date January 9, 2018 ITEM NUMBER Designating Official Deposi- tory and Investment InstitutionsBrokers for 2018 STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Annually, the City designates the official depository and investment institutions/brokers. North Star Bank is recommended to continue as the official depository. Investment institutions/brokers includes Morgan Stanley, Northland Securities, RBC Capital Markets, LLC and the 4M Fund/PFA Financial Network, Inc. OPTIONS: 1. To approve Resolution 010918A. 2. To remove the item from the consent agenda for further consideration. STAFF RECOMMENDATION: By approving the Consent Agenda, the Council adopts Resolution 010918A Designating Offi- cial Depository and Investment Institutions. COUNCIL ACTION: RESOLUTION 010918A CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION DESIGNATING OFFICIAL DEPOSITORY & INVESTMENT INSTITUTIONS BE IT HEREBY RESOLVED, that North Star Bank is designated as a depository for the funds of the City of Lauderdale. BE IT FURTHER RESOLVED, that before any deposits are made that exceed the amount that is guaranteed by the Federal Deposit Insurance Corporation (FDIC), the depository must supply to the city a corporate surety bond in the amount of at least ten percent more than the amount on the deposit plus accrued interest at the close of the business day. The bond is subject to the approval of the city council. BE IT FURTHER RESOLVED, that in lieu of the above bond, the depository may furnish collateral in the manner and to the extent permitted by law. All such collateral must be approved by the council and accompanied by a written assignment providing that, upon default, the financial institution shall release to the city on demand, free exchange or any other charges, the collateral pledged. BE IT FURTHER RESOLVED, all collateral must be placed in safekeeping in a restricted account at either a Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or. controlled by the financial institution that is furnishing the collateral. In case of default upon the part of the depository, the council of the city shall have full power and authority to sell such collateral or as much as may be necessary to realize the full amount due the city over such federal guarantee. BE IT FURTHER RESOLVED, Morgan Stanley, Northland Securities, RBC Capital Markets, LLC, and the 4M Fund/PFA Financial Network, Inc. are the city's investment institutions and brokers for 2018. Adopted this 9th day of January 2018. Mary Gaasch, Mayor Heather Butkowski, City Administrator LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution Work Session X Meeting Date January 09, 2018 ITEM NUMBER 2018 Tobacco Licenses STAFF INITIAL MJC APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The City has received applications for renewal of tobacco licenses. The licenses would be valid January 1, 2018— December 31, 2018. Larpenteur SuperUSA - 2424 Larpenteur Avenue W Croix Oil (BP Station) - 2421 Larpenteur Avenue W OPTIONS: 1. To approve Resolution 010918C. 2. To remove the item from the consent agenda for further consideration. STAFF RECOMMENDATION: Approve Resolution 010918C Approving 2018 Tobacco Licenses. COUNCIL ACTION: RESOLUTION 010917C CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING 2018 TOBACCO LICENSES WHEREAS, the following applicants: Larpenteur SuperUSA 2424 Larpenteur Avenue W Croix Oil 2421 Larpenteur Avenue W have presented to the City of Lauderdale complete applications for renewal of current tobacco licenses; and WHEREAS, the establishments listed above have provided the proper fee and the Certification of Workers Compensation form and insurance certificate. NOW, THEREFORE BE IT RESOLVED, that the Lauderdale City Council authorizes that the establishments listed above, be granted tobacco licenses with the City of Lauderdale for the term of January 1, 2018 through December 31, 2018. Adopted by the City of Lauderdale this 9th day of January, 2018. Mary Gaasch, Mayor ATTEST: Heather Butkowski, City Administrator LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution X Work Session Meeting Date January 09, 2018 ITEM NUMBER 3.2 Off Sale Malt Liquor License for 2018 STAFF INITIAL MJC APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The City has received an application for renewal 3.2 off sale malt liquor license. The license would be valid January 1, 2018 — December 31, 2018 Larpenteur SuperUSA - 2424 Larpenteur Avenue W OPTIONS: 1. To approve Resolution 010918D. 2. To remove the item from the consent agenda for further consideration. STAFF RECOMMENDATION: Approve Resolution 010918D Approving 3.2 Off Sale Malt Liquor License for 2018. COUNCIL ACTION: RESOLUTION 010918D CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING 3.2 OFF SALE MALT LIQUOR LICENSE FOR 2018 WHEREAS, the following applicant: Larpenteur SuperUSA 2424 Larpenteur Avenue W has presented to the City of Lauderdale their complete application for renewal of current 3.2 off sale malt liquor license; and WHEREAS, the establishment listed above has provided the proper fee and the Certification of Workers Compensation form and insurance certificate. NOW, THEREFORE BE IT RESOLVED, that the Lauderdale City Council authorizes that the establishment listed above, be granted 3.2 off sale malt liquor license with the City of Lauderdale for the term of January 1, 2018 through December 31, 2018. Adopted by the City of Lauderdale this 9th day of January, 2018. Mary Gaasch, Mayor ATTEST: Heather Butkowski, City Administrator LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action X Resolution X Work Session Meeting Date January 9, 2018 ITEM NUMBER Development District Res STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The following resolution is the next step in modifying the City's Development Program for Development District No. 1 and the Tax Increment Financing Plan for Tax Increment Fi- nancing District No. 1-2 (a.k.a. Program and Plan) in order to secure the funding for the pur- chase of the Chinese Church. With this resolution the City Council is affirming the changes to the Program and Plan are in conformance with the City's general plans for the develop- ment of the City. OPTIONS: STAFF RECOMMENDATION: Motion to adopt Resolution 010918B—A Resolution Finding that a Modification to the De- velopment Program for Development District No. 1 and a Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 Conform to the General Plans for the Develop- ment and Redevelopment of the City. RESOLUTION NO. 010918B CITY OF LAUDERALE RAMSEY COUNTY STATE OF MINNESOTA RESOLUTION FINDING THAT A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-2 CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City of Lauderdale (the "City") has proposed to adopt a Modification to the Development Program for Development District No. 1 (the "Development Program Modification") and a Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan") and has submitted the Program and Plan to the City Council (the "Council") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and; WHEREAS, the Lauderdale city council (the "Council") serves as the City's planning agency within the meaning of Minnesota Statutes, Section 462.354, Subd. 1, and; WHEREAS, the Council has reviewed the Program and Plan to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Council that the Program and Plan conform to the general plans for the development and redevelopment of the City as a whole. Dated: January 9, 2017 Mary Gaasch, Mayor ATTEST: Heather Butkowski, City Clerk - Administrator IN • • II As of January 2, 2018 Draft for City Council Modification to the Development Program for Development District No. 1 and the Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 1-2 (a redevelopment district) within Development District No. 1 City of Lauderdale Ramsey County State of Minnesota Public Hearing: January 23, 2018 Adopted: EHLERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Section 1 - Modification to the Development Program for Development District No. 1 1-1 Foreword 1-1 Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-1 Subsection 2-1. Foreword 2-1 Subsection 2-2. Statutory Authority 2-1 Subsection 2-3. Statement of Objectives 2-1 Subsection 2-4. Development Program Overview 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements 2-4 Subsection 2-9. Sources of Revenue/Bonds to be Issued 2-5 Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection 2-10. Uses of Funds 2-11. Fiscal Disparities Election 2-12. Business Subsidies 2-13. County Road Costs 2-14. Estimated Impact on Other Taxing Jurisdictions 2-15. Supporting Documentation 2-16. Definition of Tax Increment Revenues 2-17. Modifications to the District 2-18. Administrative Expenses 2-19. Limitation of Increment 2-20. Use of Tax Increment 2-21. Excess Increments 2-22. Requirements for Agreements with the Developer 2-23. Assessment Agreements 2-24. Administration of the District 2-25. Annual Disclosure Requirements 2-26. Reasonable Expectations 2-27. Other Limitations on the Use of Tax Increment 2-28. Summary 2-5 2-6 2-7 2-8 2-8 2-10 2-10 2-10 2-11 2-11 2-12 2-13 2-13 2-13 2-13 2-14 2-14 2-14 2-15 Appendix A Project Description A-1 Appendix B Map of Development District No. 1 and the District B-1 Appendix C Description of Property to be Included in the District C-1 Appendix D Estimated Cash Flow for the District D-1 Appendix E Minnesota Business Assistance Form E-1 Appendix F Redevelopment Qualifications for the District F-1 Appendix G Findings Including But/For Qualifications G-1 Section 1- Modification to the Development Program for Development District No. 1 Foreword The following text represents a Modification to the Development Program for Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 1-2. For further information, a review of the Development Program for Development District No. 1 is recommended. It is available from the City Administrator at the City of Lauderdale. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 1. Boundaries of Development District No. 1 The boundaries of Development District No. 1 are being expanded to be coterminous with the corporate boundaries of the City of Lauderdale. City of Lauderdale Modification to the Development Program for Development District No. 1 1-1 Section 2 - Tax increment Financing Plan for Tax Increment Financing District No. 1-2 Subsection 2-1. Foreword The City ofLauderdale (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 1-2 (the "District"), a redevelopment tax increment financing district, located in Development District No. 1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.124 to 469.133, inclusive, as amended, and MS., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Development District No. 1. Subsection 2-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate construction of up to 130 market rate apartments in the City. Please see Appendix A for further District information. The City has not entered into an agreement or designated a developer at the time of preparation of this TIF Plan, so the TIF plan is based upon a maximum number of units that could be built on the site. The project may be smaller in the number of units and or may consist of single-family housing. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 1. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No: 1 and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to MS., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a) "Redevelopment district" means a type oftaxincrementfrnancingdistrict consisting ofaproject, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings,, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) The property consists of vacant unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; (3) tankfacilities, or property whose immediately previous use was for tankfacilities, as defined in Section 115C, Subd. 15, if the tank facility: (i) have or had a capacity of more than one million gallons; (ii) are located adjacent to rail facilities; or (iii) have been removed or are unused, underused, inappropriately used or infrequently used; or (4) a qualifying disaster area, as defined in Subd. 1 Ob. (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to just substantial renovation or clearance. (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-2 site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are met: (1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer ander a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement of paragraph (e) and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by § 469.177, subdivision 1, paragraph 0. (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a . redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the City relies on the following facts and findings: • The District is a redevelopment district consisting of one parcel. • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. An inspection of the single building located within the District finds that it is structurally substandard as defined in the TIF Act. (See Appendix F). Pursuant to MS., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-3 Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. I b., the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The City elects to receive the first tax increment in 2020, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2045, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and MS., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2017 for taxes payable 2018. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2020) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2018, assuming the request for certification is made before June 30, 2018. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2020. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC) $243,750 Original Estimated Net Tax Capacity (ONTC) $9,193 Estimated Captured Tax Capacity (CTC) $234,557 Original Local Tax Rate 1.13109 Estimated Annual Tax Increment (CTC x Local Tax Rate) $265,305 Percent Retained by the City 100% Estimated Pay 2018 City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-4 Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the project within the District will be financed by a bond issue, interfund loan and/or transfer of funds needed if tax increment isn't adequate to cover debt service on the bonds. Based upon future development on the site, the City may issue a pay-as-you-go note to a private developer. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $6,873,114 Interest $687,311 TOTAL $7,560,425 The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $4,977,960. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate construction of up to 130 market rate apartments. The City has determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-5 USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $1,300,000 Site Improvements/Preparation $1,500,000 Utilities $200,000 Other Qualifying Improvements $1,290,649 Administrative Costs (up to 10%) $687,311 PROJECT COST TOTAL $4,977,960 Interest $2,582,465 PROJECT AND INTEREST COSTS TOTAL $7,560,425 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plari. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 1, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 2-11. Fiscal Disparities Election Pursuant to MS., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are followed, the following method of computation shall apply: (1) The original "net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial -industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated., in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authorityfrom the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-6 to the retained captured net tax capacity of the authority is the tax increment of the authority. The City will choose to calculate fiscal disparities by clause b. According to MS., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies Pursuant to M.S., Section 1161993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (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 MS., Section 1161552, Subd. 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% 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; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 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) hldirect 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 M.S., Section 469.174, Subd. 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 $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-7 Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The City will comply with M.S., Sections 116J.993 to 1161995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. la, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE Ramsey County City of Lauderdale Roseville ISD No. 623 2017/Pay 2018 Total Net Tax Capacity 496,357,455 2,119, 846 63,035,064 Estimated Captured Tax Capacity (CTC) Upon Completion 234,557 234,557 234,557 Percent of CTC to Entity Total 0.0473% 11.0648% 0.3721% IMPACT ON TAX RATES Ramsey County City of Lauderdale Roseville ISD No. 623 Other Total Pay 2018 Percent Proposed of Total CTC Extension Rates 0.536920 47.47% 234,557 0.299100 26.44% 234,557 0.212920 18.82% 234,557 0.082150 7.26% 234,557 1.131090 100.00% Potential Taxes 125,938 70,156 49,942 19,269 265,305 City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-8 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the estimated Pay 2018 rate. The total net capacity for the entities listed above are based on estimated Pay 2018 figures. The District will be certified under the actual Pay 2018 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 20): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $6,873,114. (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is not expected. The City currently contracts with the St. Anthony Police Department for police services. With any addition of new residents or businesses, police calls for service may be increased. New developments may add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment or require that the City expand its contract with the St. Anthony Police Department. The City currently contracts with the Falcon Heights Fire Department, and the probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute to sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is anticipated that there will be general obligation debt issued in relation to this project on a temporary basis but that there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,293,520; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $3,262,667; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to MS. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-9 development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the City's findings: A list of applicable studies will be listed here prior to the public hearing. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of MS., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the City; 5. Increase in the estimate of the cost ofthe District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 40, the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-10 capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.1 74, Subd. 14, administrative expenses means all expenditures of the City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M. S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofRIS., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-11 account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to MS., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner oftheparcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancingplan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall cert0i the net tax capacity thereof as most recently certified by the commissioner ofrevenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street,' and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately January 2022 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the capital and administration costs of Development District No. 1 pursuant to M.S., Sections 469.124 to 469.133; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Development District No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-12 These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Development District No. 1 or the District. Subsection 2-22. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance ofthe development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the City Administrator. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-13 Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of Development District No. 1 pursuant to M.S., Sections 469.124 to 469.133. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-14 enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation ofredevelopment and renewal and renovation districts under M.S., Section 469.176Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2-28. Summary The City of Lauderdale is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. City of Lauderdale Tax Increment Financing Plan for Tax Increment Financing District No. 1-2 2-15 Appendix A Project Description The City intends to purchase the existing vacant property for the future redevelopment of the site. Future development anticipated is up to 130 units of market rate apartments. It is anticipated that the City will sell GO TIF bonds to pay for the acquisition and demolition of the structure to prepare the site for development. Appendix A-1 Appendix B Map of Development District No. 1 and the District Appendix B-1 The boundaries of Development District No. 1 are being expanded to be coterminous with the corporate boundaries of the City of Lauderdale. Sunme=SUeei Tax Increment Financing District No. 1-2 S • Legend (unl City Halls Schools I:1 Hospitals Fire Stations Police Stations El Recreational Centers Parcel Points 0 Cities Boundaries of the City of Lauderdale TAX INCREMENT FINANCING DISTRICT NO. 1-2 DEVELOPMENT DISTRICT NO. 1 (GEOGRAPHIC EXPANSION) CITY OF LAUDERDALE RAMSEY COUNTY, MINNESOTA Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 17.29.23.33.0001 1795 Eustis St. Chinese Christian Church Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 Base Value Assumptions - Page 1 W W Chinese Church Redevelopment - No Inflation City of Lauderdale 130 Market Rate Apartments ►_FzirPd'iiNIM6I rl:leiII -� Redevelopment 0 0 0 0 0 0 000 LO O N O O N O Ni N L- LLO r N O O 00 O0 O N 0 0 0 0 L 0 ON O 0) a m ui U ac c 0 CC J a. a ,- a C m Q 0_i E N U m 1 2 m �., m = m U m m CC c m N o w 0 Z z _ O O K 5 o o --0 o o o o 0. 0 E T2 0 0 0 Y � 0 O 5 0 0 5 0 0 o 09 0 a) n Lo O L y a) O O U 0 au N !.-1.,a.u3 .» Ta y oi»i»1N vi u�Is: e3 e3 E O N N e2 m O 0 kD N aC m.. Cm y m m ` aLLN / 0 C V) "O—�)uO 00i-OLLOZm mm y -0 E-) U .0 a O E a) j 0. 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U X N mNr =`X4ill rNX N m N N '2.9LN g(i fn20oiLLWCGdLL F-U}QLL C1a) z ^ X o. 0 m a R X F- 01 0) 0 z O F O Z W J W a y X y a� 0 � U a To To c > a) y 2 m Y ▪ 4, o m > C 0 0 D i m > > J Y m 0 v Q 0 a 0) E X w CO N O O O 0 M M r r 17.29.23.33.0001 \TIF\TIF Districts\TIF 1-2\TIF Plan Run - Final TNT Rat ng - Economic - Redevelop Prepared by Ehlers Base Value Assumptions - Page 2 y W 0 ca 0. U x 1- 0 0 F 2 CC 0 LL z W 0 a O CO 0 1.1 m < C 'ES' • EN 0 act 0 0 ▪ N O. • EN O 00, U 0 rn 0 .A moo a • EN O acs x 'c F-? N O O a a� 0v m o a x 1- T 2 ~U a c 11,P F2 iv:N 0'c y � x X d Q t �a N 0 0 m 7 - Y O I0 a m Z Area/Phase N O 0 N. CO. ef N N m 0 OO O O O O OO O O LL m� O O O O Lo 0) a -J 1- 0 0 N O O 0 O1 0 E O U m a 0 E 0 0 a 0 0 G7 N 2 z- A' AL LATI • 0 'E aD v X LL I I. w m v � X H � m N T 3 teX A N a U N N N NF' a T 0 0 m a~ T x . U 0 OF o. 0 T f0 x 0 U 0 W D m z 0 N (0 0 0 n N Lo M N O n a N 0 w CC M n 0 0 n N 0. N O 0 r v J 0 1- O A L a m 0. r`.12 A m ui rri 0 0 0 a d m m T O >. E 0 T 0 0) rar 7 — a 3 u c a E a 2 a c 0 x c a c -a N a u u 01 N t X 3 0 F O Z I,- vco • CO CO 0 a O O 0 0 - 01.- N O Economic - Redevelopment\TTF\TTF Districts\TIF 1-2\TIF Plan Run - Final TNT Rates 12-19-17 N:\Minnsota\Lauderdale\ Prepared by Ehler Tax Increment Cashflow - Page 3 W W O o 4 Z I 0) c d E d is ' ig 0 - Q � m 0)) cc a W 0) o m Z v 2 0 0 0) m U 0 J u- 2 N 0 F - Z Cw w 0 Z X F 0 Eta' >.0 D 0 rs g>42 DO RDS: } aW E.42). lig a' f �'a'° aH m 0 0 C R •C d d m E •- U D C m O1 F a O 8 >, a m •m O F � 0000, N NMM V V 0OOOf-i-m00000,,NNMM V V O O O Cp 1-1-03 0 0000 NN M M V V O O 0 ,NNNNNNNNNNNNNNNNNNNNCCOMOCOOQOMMM M M M M M M M M M M M M V V V' V V V V V V V V V 0000000000000000000000000000000000000000000000000000000 CV CO 400 CV CO N CO a 8 a 8a 8 Z5 i4 N00 a GO CZ4 Oi N a0 NmN 8 ta. m a 00 a 000400 C4 d0 N co N 6 N aO 4 c m 4 co m N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o O 00„NN MM V V 0)0001 -1 -(000000 --NN M M V V 1010 0 0 r 0- m m 0 0 0 0 N N M M V V O O 0104040401010104010401040401040404040401100)10100)0)00)0)10 M M M M M M M M M 10'0'1('0'0'0 V V V V V V 0000000000000000000000000000000000000000000000000000 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N NN N NNN NNN NN NNNNN N Oc'nNOMO V OOOOOi-IAmOO)0010 0NOMO ‚0(0 0) 00 (0 1-O m O0 0 0 0 O N 0 M O V OOOO O a- 6 of V 10 Id 0- QO N N N N N N N 0NMMN.-0, 031-N000)0 V 0(0 000100N0N 0- O O 0- 0O r 0, 01-M N MO O 01-10 0 0 V)- M 0 O 0 0 O, 1 1- 0( 0(0 0 0 0 0 0 0.-- 0 1. O m 0 M, M 0 O 0 0 0 O N N 0 0 V N N 1 M 1- O M WON 0 C0 0 V .-_ 0 0 0 .- O M O O O O O W V V 0 O N O- O N N N 0 0 0 V N O m 1- 1- 0 0 M 0 V M M 00-0000-0.-V 0nMN0-00C1�N Or010000MO.- 0 N O O 0 (0 N r. MO /0100 N 0M0 (000 N MM .-N0N0 0NNNNN'001-0 0OM0i-O N 0 O N m f -M 0 V 0O 0 00-0 O 0O 0 M 0 N 0 0 ,NM V 001-0000,010 V 0001-00(00'-1NM M� IO 0001-00 0 0 00,.--NNM M M V V OO 0 ..... N N N N N N N N NN NNNN NNMMMMMM M M M MMM M M 00000000000100010000000000000 0 m m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m m 0 m m m m m O O O O O O O O O O O O O O O O O O O O 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O ,00000000.0000000000000000.000000000000000.000000. 0 0 00000 000 00000000 00 0 00 000 0000 M M M MMM0 MG) m 00 m m C0 00 00 ea0 MM0)00 0 m 0 OW OM W M N M WO t0 M 0000000000001000000000000000 03 CO CO CO CO m m 00 m m m CO m CO 030303 m00 0 m CO m CO 00 ”' N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N M COCOCOMCOMMMMMMMpI(OMCOMMtOCOMMMMMM M CO M M M CO M M M CO M CO M M CO M CO M M c0 CO M M M tai r M 0:d 0-0-0-0000^mmma0Om^0000000000^^m^mm 4-m n 00 0- aro ^ m M^ CO0 COM m 0-n m 0).000 00 0- 000 0 MOO 1 1 V V a V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V 00060M00000600066660000M0006M M M M M M M MMM M CO M 0) M M M M M M MMM M M O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 1 1 0000)00000000000000000000000 0 0 0 0 0 O 0 0 0 O 0 0 0.0 00 0 0(0 0 0 0 0 0 0 M a a ac.faNOCN0 MaN0 ON]Mc—gcsi MMMCNOaMMMaNOaNOCNOCNO c M M MMM M M M M M SONO M M M N M M M M M M M N CO V N c 0 0 CO 0 CO 0 O CO 0 0 0 0 0 CO CO 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO CO M CO CO CO M CO M CO 0 0 M CO O 10 10 )o 0) (0 0) 0 0 0 00 )0 10 )0 N0NNNNNN NNN C4 CO N N CO 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO CO CO CO 0) M M M 0 CO CO m 0) m 0 0) '0 In N 0 0 N10 100 0N N CO N CO CO 01 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000 O_ O O o O O_ O O O_ 000_ M M ci M CI M a) M Ch o M 0 M M M th C7 M M M M 6 M Id 6 M 0 0 0 m 0 0 0 0 0 0 0 0 0 m m m m 0 0 0 m m m 0 m 0 o 0 0 0 1( N o o o 0) o N 0) N o N 0 0 (0 0 (1) (00 0 0 0 0 V V V V V V V V V V V V V V V V V V V V V V V V V V 6666666666 6666 M 0) 0) 0) 0) (0 0) 0) 0) COMM 01 04 04 ('4 ('4 01 04 04 (01 01 04 N N N N N 01 0)4 ("1 04 04 ('4 0) 0') 04 0)4 CO M M 0) CO CO CO CO 0) M M M M CO M CO CO CO M M M CO M M M M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0_ 0 0 m m m 0 m m m 0 m m m of 0 m 0 0 m 6 m m m 0 0) 0f of 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0. 10 O O O O 0 O O (0 O O O O O O O O O 0 0 0 O O 0 O I.-- r 0- 1- r n 0- 0- 0- n 0- 0- 0-- 0- r r r r 0- 1_ 1- 1� 0- r 1- i- vvv vvvvvvvvv vvvvvv vvva v v v ,1- 01 N N N N N N 04 N 01 N N N N N N N N 04 N N N N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 1- 0 0 Iopment\TIF\TIF Districts\TIF 1-2\TIF Plan Run - Final TNT Rates N:\MInnsota\Lauderdale\Housing - Economic - Red nc. - Estimates Only Prepared by Ehlers & A Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix E-1 Appendix F Redevelopment Qualifications for the District To be added to prior to the publichearing Appendix F-1 Appendix G Findings Including But/For Qualifications To be added to prior to the public hearing But -For Analysis Current Market Value New Market Value - Estimate Difference Present Value of Tax Increment Difference Value Likely to Occur Without TIF is Less Than: 735,400 19,500,000 18,764,600 3,978,066 14,786,534 14,786,534 Appendix G-1 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action Resolution Work Session X Meeting Date January 9, 2018 ITEM NUMBER Memorandum of Understanding Between City & AFSCME STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Staff has been in the process of setting up a Health Care Savings Plan (HCSP) with the Min- nesota State Retirement System (MSRS). Language regarding the HCSP in the personnel policy and the union contract needs to be specific and the language in both also needs to match. Staff has been working on complying with the regulatory language required by MSRS. The final step is the attached Memorandum of Understanding (MoU) between the City and AFSCME for the 2016-2017 union contract and the 2018-2020 union contract. These changes are retroactive to January 1, 2016. OPTIONS: 1) Approve as presented. 2) Do not approve as presented. 3) Do something else. STAFF RECOMMENDATION: Motion to approve the Memorandum of Understanding between the City of Lauderdale and AFSCME, COUNCIL 5, AFL-CIO as presented, retroactive to January 1, 2016. AFSCME Proposal 12/29/2017 1 MEMORANDUM of UNDERSTANDING 2 between 3 City of Lauderdale 4 and 5 AFSCME, COUNCIL 5, AFL-CIO 6 This Memorandum of Understanding is entered into this 9th day of January, 2018. The parties to this agreement 7 are the City of Lauderdale and AFSCME, Council 5, AFL-CIO. 8 Background: 9 The City of Lauderdale and the American Federation of State, County and Municipal Employees— Council 5 10 (hereinafter AFSCME) have joined efforts to modify the current Insurance language for the 2016-2017 and the 11 2018-2020 contract years. This Memorandum of Understanding (MoU) is intended to modify the terms and 12 conditions of employment that are necessary to implement new Insurance language as agreed to by identified 13 parties. 14 Whereas: the parties wish to amend the provision of the AFSCME Master Agreement 15 Now therefore, the parties hereto agree to the following amendments: 16 2016-2017 Contract 17 Article 15: Paragraph 5 18 Should the employee's insurance selections total less than the Employer's maximum contribution, the 19 employee may contribute the unused compensation in a deferred compensation plan or health savings 20 accounts. 21 22 Article 19: Section D 23 Employees shall contribute four (4) days of sick leave annually to a health care savings plan after the 24 probationary period has been satisfactory completed. 25 26 27 2018-2020 Contract 28 Article 15: Paragraph 6 29 Should the employee's insurance selections total less than the Employer's maximum contribution, the 30 employee may contribute the unused compensation in a deferred compensation plan or health savings 31 accounts. 32 33 Article 19: Section E 34 Employees shall contribute four (4) days of sick leave annually to a health care savings plan after the 35 probationary period has been satisfactory completed. 36 37 The parties agree to this MoU. The parties acknowledge that in the spirit of this MoU, additional issues may 38 arise and are committed to working together to resolve them. 39 40 This agreement is effective January 9, 2018 and will remain in effect to the duration of the 2018-2020 collective 41 bargaining agreement. 42 1 AFSCME Proposal 12/29/2017 43 For the Union: 44 45 46 Date 47 Crystal Kreklow 48 AFSCME Council 5 Field Representative 49 50 Date 51 Jim Bownik 52 AFSCME Local 2725 Negotiations Representative 53 54 55 For the Employer: 56 57 Date 58 Mary Gaasch 59 City of Lauderdale Mayor 60 61 Date 62 Heather Butkowski 63 City of Lauderdale Administrator 64 65 66 67 2 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action Resolution Work Session X DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The Council determines committee assignments and makes other designations at the first meeting of the year. The following document has the committee assignments and designa- tions from last year. Staff carried over the assignments from 2017 to 2018 and will make changes based on the outcome of the discussion. Denise Hawkinson requested to remain as a liaison to the University of Minnesota Neighborhood Group. OPTIONS: STAFF RECOMMENDATION: Motion to adopt committee assignments and designations as discussed. Acting Mayor Bank Signatories Building Official: Residential Building Official: Commercial Comprehensive Plan Data Practices Officer Data Practices Compliance Officer LMC Metro Cities MWMO NSCC CIC Police Liaison RCLLG CITY OF LAUDERDALE 2018 APPOINTMENTS 2017 Dains Gaasch Dains Butkowski David Hinrichs Duane Grace Council: Dolphin Staff: Bownik & Butkowski Butkowski City Attorney Council: Grove Staff: Butkowski Council: Gaasch Staff: Butkowski Gaasch Alt: Dains Council: Dains Alt: Dolphin Dog Park: Gaasch Day in the Park: Dolphin Fun Run: Moffatt Halloween: Grove Council: Gaasch Staff: Butkowski Council: Grove Alt: Dolphin 2018 Dains Gaasch Dains Butkowski David Hinrichs Duane Grace Council: Dolphin Staff: Butkowski Butkowski City Attorney Council: Grove Staff: Butkowski Council: Gaasch Staff: Butkowski Gaasch Alt: Dains Council: Dains Alt: Dolphin Dog Park: Gaasch Day in the Park: Dolphin Fun Run: Moffatt Halloween: Grove Council: Gaasch Staff: Butkowski Council: Grove Alt: Dolphin St. Paul Regional Water Service SRA U of M Neighbors Group Zoning Admin. City Engineer Dains Council: Dolphin Alt: Butkowski Council: Hawkinson Staff: Butkowski Bownik Stantec City Civil Attorney Kennedy & Graven City Pros. Attorney Hughes & Joseph Official Newspaper Lillie Suburban Newspapers, Inc. Dains Council: Dolphin Alt: Butkowski Hawkinson Staff: Butkowski Bownik Stantec Kennedy & Graven Joseph Law Lillie Suburban Newspapers, Inc. NOTE: Any councilor may attend LMC, Metro Cities, or RCLLG Meetings. Committees & Commissions Acting Mayor: The council member that will act as the mayor pro tem in the mayor's absence. League of Minnesota Cities (LMC): As a LMC member city, the City receives many services, the two most important being training and representation at the Capitol. The City also purchases insurance through the League's Insurance Trust. There are many different types of LMC meetings and trainings happening year round. All council members are able to get involved. The duty of the LMC appointee is to vote on the City's behalf at the annual meeting, if present. Metro Cities: Metro Cities represents the interests of member cities in the seven county metropolitan area, primarily representing cities before the Metropolitan Council and at the Capitol. The primary duty of the appointee is to vote on the City's behalf at the annual meeting. Mississippi Water Management Organization (MWMO): The City is one member of a joint powers board that manages and monitors the storm water quality in the Middle Mississippi Watershed area. The MWMO covers the southwest part of the city (south of Larpenteur Avenue and west of Eustis Street). North Suburban Cable Commission (NSCC): The City is one of nine northern suburbs that jointly administer cable franchise agreements with Comcast and CenturyLink. The commission also oversees the operation of the local access stations and the institutional network. The board meets the first Thursday evening of each month at the cable commission office in Roseville. Community Involvement Committee (CIC): CIC members organize community events and celebrations. The committee meets on an irregular schedule. Police Liaison: The police liaison meets with the St. Anthony Police Chief as needed. Ramsey County League of Local Governments (RCLLG): Ramsey County cities, school districts, and special districts meet monthly to network and learn through common issues. Meetings are held in the evening on the third Thursday of the month at alternating locations in Ramsey County. Each meeting is organized around a topic or trainer. Suburban Rate Authority (SRA): The Suburban Rate Authority consists of metro communities in a joint powers arrangement that collectively work together to represent municipal interests in dealings with public utility providers like Xcel Energy and CenterPoint Energy. The group also provides a voice for rate payers when the Public Utilities Commission and utility providers negotiate rate increases and service changes. The committee meets quarterly (third Wednesday) at member city locations. December 4, 2017 Heather Butkowski City Administrator City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 Dear Ms. Butkowski: Thank you for the opportunity to bid on public notice publication services for the City of Lauderdale. Lillie Suburban Newspapers has been serving the needs of the Lauderdale area for 43 years, and is pleased to provide ongoing coverage of city government and school issues and community events. Lillie Suburban Newspapers is the oldest weekly newspaper company in the St. Paul area. It was founded in 1938 by the late T. R. Lillie. His grandsons, Jeffery Enright and Ted H. Lillie, are continuing the family tradition of publishing award-winning community newspapers in the St. Paul suburbs. It is our sincere desire to provide the best possible local news coverage in the Lauderdale area. Our experienced news staff provides readers with a well-balanced, lively and informative product each week. We realize that Lauderdale area residents look to the Roseville Review as one of their primary sources of information about city activities and meetings, and we will continue to publish the city's press releases and photos. The Roseville Review is the official legal designation for Little Canada, Maplewood and the Roseville Area School District. 3 P.M. Thursday is the deadline each week for submitting public notices to our office. Public notices should be directed to Kitty Sundberg, Lillie Suburban Newspapers, 2515 E. Seventh Ave., North St. Paul, MN 55109. Our fax number is 651/777-8288. Notices may also be sent via e-mail to: legals@lillienews.com Legal publication rates for minutes, advertisements for bids and other notices are as follows: $5.75 per column inch for a one-time publication $5.25 per column inch for each additional publication Thank you for considering the Roseville Review as the official legal newspaper for the City of Lauderdale for 2018. If you have any further questions, don't hesitate to call us. Sincerely, /s/ Jeffery Enright Jeffery Enright Publisher LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion Action Resolution X Additional Items X Meeting Date January 9, 2018 ITEM NUMBER Interfund Loan Resolution STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The following resolution allows the City to transfer money from the 414 Development Fund to a new tax increment financing (TIF) fund being created in connection with the purchase of the Chinese Church. The transferred funds will cover the administrative costs of setting up the TIF District in advance of receiving the proceeds from the bond sale. OPTIONS: STAFF RECOMMENDATION: Motion to adopt Resolution 010918E—A Resolution Authorizing Internal Loan for Ad- vance of Certain Costs in Connection with Tax Increment Financing District No. 1-2. RESOLUTION 010918E CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING INTERNAL LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-2 BE IT RESOLVED by the City Council of the City of Lauderdale,. Minnesota (the "City") as follows: Section 1. Background. 1.01. The City intends to establish Tax Increment Financing District No. 1-2 (the "TIF District") within Development District No. 1 within the City, pursuant to pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act"). 1.02. The City may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available City funds. 1.03. Under Section 469.178, subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City has determined to pay for certain administrative costs related to the proposed TIF District (the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. 1.05. Under Section 469.178, subdivision 7 of the TIF Act, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized in order to finance the Qualified Costs. 1.06. The City will loan funds from its Development Fund (Fund 414), or any other fund designated by the City, to finance the Qualified Costs (the "Interfund Loan") in accordance with the terms of this resolution. Section 2. Interfund Loan Authorized. 2.01. The City hereby authorizes the advance of up to $100,000 from the Development Fund (Fund 414) or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 and Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4.0% and will not fluctuate. 514744v1 JAE LA135-35 2.02. Principal and interest (the "Payments") on the Interfund Loan shall be paid semiannually on each February 1 and August 1 (each a "Payment Date"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator of the City, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Administrator of the City, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Ramsey County, Minnesota, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds or notes issued by the City and secured in whole or in part with Available Tax Increment. The Interfund Loan shall be paid prior to any pay-as-you-go notes or contracts secured in whole or in part with Available Tax Increment, and any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The City may from time to time amend the terms of this resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided, however, that the interest rate may not be increased above the maximum specified in Section 469.178, subdivision 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon approval. Adopted by the City Council of the City of Lauderdale, Minnesota, this 9th day of January, 2018. ATTEST: Heather Butkowski, City Clerk -Administrator 2 514744v1 JAE LA135-35 Mary Gaasch, Mayor