HomeMy WebLinkAboutResolution 16-EDA-292 RESOLUTION NO. 16-EDA-292
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION ADOPTING PUBLIC FINANCING POLICY AND APPLICATION
WHEREAS,the Mounds View Economic Development Authority(the "EDA") and the
Mounds View City Council (the "City")have adopted a policy dated May 12, 1997 and
previously amended on June 12, 2000, for the purpose of establishing the City and EDA's
position related to public financing for private development within the City; and,
WHEREAS,the EDA has determined that it is necessary and appropriate to amend and
adopt a Public Financing Policy and Application(the "Policy"); and,
WHEREAS,the EDA has performed all the actions required by law to be performed
prior to the adoption and the approval of the proposed Policy.
NOW,THEREFORE, BE IT RESOLVED,by the Mounds View Economic
Development Authority, Mounds View, Minnesota,that the Policy, contained in Exhibit A of
this resolution is hereby approved, ratified, established, amended, and adopted and shall be
placed on file at City Hall.
Adopted this 8th day of February, 2016.
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ATTEST:
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James Ericson, Executive Director
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City of Mounds View Economic Development
Authority
Public Financing
Policy & Application
Combined TIF &Abatement Policy,
Now Called Public Financing Policy&Application Adopted: February 2016 (Expected)
Tax Rebate Financing Policy&Application Amended: September 22, 2003
Tax Abatement Policy&Application Adopted: October 10, 2000
TIF Policy Amended: June 12, 2000
TIF Policy Adopted: May 12, 1997
City of Mounds View
2401 County Road 10
Mounds View, MN 55112-1499
763.717.4017
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
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Table of Contents
I. Policy Purpose 3
II. Objectives for the Use of Public Financing 3
III. Public Financing Principles 4
IV. Project Qualifications 5
V. Subsidy Agreement & Reporting Requirements 6
VI. Application Process for Public Financing 6
Public Financing Application 8
A. Project Information 8
B. Contact Information 9
C. Signature 10
D. Public Purpose 11
E. Job & Wage Goals 11
F. Sources & Uses 12
G. Additional Documentation and Checklist 13
H. Confidentiality Agreement 15
I. Sample But-For Analysis 17
J. Public Financing Application Review Worksheets:
Commercial-Industrial Projects 18
Housing Projects 20
City of Mounds View Public Financing Policy&Application
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I. POLICY PURPOSE:
The Mounds View Economic Development Authority, hereafter referred to as the EDA,
promotes the development and enhancement of the City of Mounds View's tax base. The
purpose of this policy is to establish the City of Mounds View's position relating to the use
of public financing for private development above and beyond the requirements and
limitations set forth by State Law. For the purposes of this policy, public financing may
include, but may not limited be to: Tax Increment Financing (TIF), Tax Abatement,
contributions of real or personal property, infrastructure development, a reduction or
deferral of any tax or fee, and any grants, loans, or loan guarantees made with City and/or
EDA funds.
This policy shall be used as a guide in the processing and review of applications
requesting public financing. The fundamental purpose of providing public financing in
Mounds View is to encourage desirable development or redevelopment that would not
otherwise occur but-for the assistance provided through the use of such financing.
It is the intent of the EDA to provide the minimum amount of public financing at the
shortest term required for the project to proceed. Preference is given to projects leveraging
funding from other public and private sources. The EDA reserves the right to approve or
reject projects on a case by case basis, taking into consideration established policies,
project criteria, and demand on City services in relation to the potential benefits from the
project. Meeting policy criteria does not guarantee the award of public financing to the
project. Approval or denial of one project is not intended to set precedent for approval or
denial of another project.
II. OBJECTIVES FOR THE USE OF PUBLIC FINANCING
As a matter of adopted policy, the EDA will consider public financing to assist private
development projects to achieve one or more of the following objectives:
• To retain local jobs and /or increase the number and diversity of jobs that offer
stable employment and/or livable wages and benefits as defined in the City's
Business Subsidy Policy.
• To encourage additional unsubsidized private development in the area, either
directly or indirectly through "spin off' development.
• To facilitate the development process and to achieve development on sites that
would not be developed without public financing assistance.
• To remove blight and/or encourage redevelopment of commercial and industrial
areas in the city that result in high quality redevelopment and private reinvestment.
• To offset increased costs of redevelopment (e.g. contaminated site clean-up,
demolition expenses) over and above the costs normally incurred in development.
• To create and support a broad range of housing choices in Mounds View.
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• To encourage the revitalization and redevelopment of the County Road 10 Corridor.
• To contribute to the implementation of other public policies, as adopted by the city
from time to time, such as the promotion of quality urban or architectural design,
energy conservation, and decreasing capital and/or operating costs of local
government.
• To enhance and diversify the City of Mounds View's economic base and to increase
the tax base.
• To finance the costs associated with public infrastructure and public facilities.
III. PUBLIC FINANCING PRINCIPLES
The guidelines and principles set forth in this document pertain to all applications for City
public financing regardless of whether they are considered a Business Subsidy as defined
by Statute. The following general assumptions shall serve as a guide for City public
financing:
A. All viable requests for City public financing assistance shall be reviewed by staff,
and, if staff designates so, a third party municipal advisor who will inform the City of
its findings and recommendations.
B. TIF and abatement will be provided on a pay-as-you-go-basis. Any request for
upfront assistance will be evaluated on its own merits and may require security to
cover any risks assumed by the City.
C. Any developer receiving public financing shall provide a minimum of ten percent
(10%) owner cash equity investment in the project.
D. Public financing will not be used in circumstances where land and/or property price
is in excess of fair market value. Situations of blight and unsightly properties will be
considered on a case-by-case basis.
E. Developer shall be able to demonstrate a market demand for a proposed project.
Public financing shall not be used to support purely speculative projects.
F. Public financing will not be utilized in cases where it would create an unfair and
significant competitive financial advantage over other projects in the area.
G. Public financing shall not be used for projects that would place extraordinary
demands on city services or for projects that would generate significant
environmental impacts.
H. The developer must provide adequate financial guarantees to ensure completion of
the project, including, but not limited to: minimum assessment agreements, letters
of credit, personal guaranties, etc.
I. The developer shall adequately demonstrate, to the City's sole satisfaction, an
ability to complete the proposed project based on past development experience,
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general reputation, and credit history, among other factors, including the size and
scope of the proposed project.
J. The developer shall proactively attempt to minimize the amount of public financing
needed through the pursuit of grants, innovative solutions in structuring the deal,
and other funding mechanisms.
K. For the purposes of underwriting the proposal, the developer shall provide any
requested market, financial, environmental, or other data requested by the City or
its consultants.
L. All public financing proposals shall optimize the private development potential of a
site.
M. Tax Increment Finance districts will be administered in accordance with applicable
State Statutes, the Tax Increment Finance Plan, and the Development District Plan.
N. When possible, TIF shall be used to finance public improvements associated with
the project. The priority for the use of TIF funds is:
1. Public improvements.
2. Site preparation, site improvement, land purchase, and demolition.
3. Legal, administrative, and engineering costs.
O. It is the City's policy to establish the following types of TIF districts:
1 . Economic Development Districts
• It is desired that the project result in a minimum creation of
one full time job per $25,000 of TIF, or
• Result in a significant increase in the tax base.
2. Redevelopment Districts
• The market value of a redeveloped site shall increase by a
minimum of 50% of the current market value.
3. Housing Districts
• May be considered on a case-by-case basis.
IV. PROJECT QUALIFICATIONS
All public financing requests considered by the City of Mounds View must meet each of
the following requirements:
A. The project shall meet at least one of the objectives set forth in Section II and
satisfy all the provisions set forth in Section III of this document.
B. The developer shall demonstrate that the project is not financially feasible but-for
the use of public financing.
C. The project shall comply with all applicable laws.
D. The project must be consistent with the City's Comprehensive Plan, Land Use
Plan, and Zoning Ordinances.
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E. The project shall serve at least two of the following public purposes:
• Creation of jobs with livable wages and benefits.
• Significantly increase the City's tax base.
• Enhancement or diversification of the city's economic base.
• Industrial development that will spur additional private investment in the
area.
• Fulfillment of defined City objectives such as those identified in the City's
Comprehensive Plan, among others.
• Removal of blight or the rehabilitation of a high profile or priority site.
• Enhancement or diversification of the City's housing stock.
• Development that will spur additional private investment in the area.
F. The developer will pay all applicable application fees and pay for the City and
EDA's fiscal costs, including creation of the TIF Plan, if applicable, and legal
advisor time as stated in the City's policies.
V. SUBSIDY AGREEMENT & REPORTING REQUIREMENTS
All developers/businesses receiving public assistance from the City shall be subject to the
provisions and requirements set forth by the City's Business Subsidy Policy and Minnesota
Statutes Sections 116J.993 to 116J.995.
A. In granting a business subsidy, the City shall enter into a subsidy agreement with
the recipient that provides the following information: wage and job goals (if
applicable), commitments to provide necessary reporting data, and recourse for
failure to meet goals required by the Statutes.
B. The subsidy agreement may be incorporated into a broader development
agreement for a project.
C. The subsidy agreement will commit the recipient to providing the reporting
information required by the Statutes.
VI. APPLICATION PROCESS FOR PUBLIC FINANCING
A. Application for all public financing requests shall be made using the Public
Financing Application provided by the City of Mounds View Business Development
Coordinator, or designee.
B. The Public Financing Application shall request information required within the City's
policies, including but not limited to; a detailed description of the project; a
preliminary site plan; the amount of business subsidy requested; the public purpose
of the project; the number and types of jobs to be created; the wages and benefits
to be paid new employees; a detailed project budget with verifiable funding sources
and uses; and a detailed operating pro forma, if applicable.
C. The applicant agrees and acknowledges to pay a non-refundable $3,000 Public
Financing Application Fee.
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D. City staff and/or consultants review the application and complete the Commercial-
Industrial and/or Housing Worksheets. The Application and Worksheets are
primarily designed to score the desirability of the proposed project. Each project will
be evaluated on a case-by-case basis to determine the extent to which they meet
the City's desired objectives.
E. At the time of acceptance by staff of the Public Financing Application, the applicant
shall deposit $10,000 with the City to cover attorney and consultant costs incurred
as part of establishing a TIF district or abatement, the TIF plan, drafting and
negotiating a development agreement, and conducting any fiscal analysis that may
be required to meet the requirements of utilizing any public financing. If additional
expenses are incurred beyond the$10,000, prior to the execution of a development
agreement, the City shall notify the applicant in writing and the applicant will be
required to deposit additional funds upon notice. Any unused portion of the$10,000
deposit may be prorated and returned to the applicant at the city's discretion.
F. Following a review by appropriate City staff/consultants the application shall be
referred to the Economic Development Authority for further action.
G. Before granting a business subsidy that exceeds $150,000, the City shall provide
public notice and hold a hearing on the subsidy.
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Public Financing
Mohs View Application
A. PROJECT INFORMATION
Property Information (please print)
Address:
Parcel Number: -
Parcel Number: - -
Parcel Number:
Parcel Number: - -
The project will be:
Industrial: New Construction Expansion Redevelopment/Rehab.
Office/research facility that conforms to Business Park zoning standards
Commercial Redevelopment or Rehabilitation
Housing Redevelopment or Rehabilitation
Other
The project will be: Owner Occupied Leased Space
If Leased Space Percent Occupied 6 months after Certificate of Occupancy
Total Amount of Public Financing Requested: $ over years.
Current Real Estate Taxes on Project Site: $
Estimated Real Estate Taxes upon Completion:Phase I$ Phase II$
Phase I
Construction Start Date Construction Completion Date
Phase II
Construction Start Date Construction Completion Date
Percent of project complete on December 31,current year.
Brief description of the proposed project:
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B. CONTACT INFORMATION
Public Information Notice
Generally,correspondence to and from staff is considered public information.Specific data related to a financial
assistance request is deemed not public: Financial Information,Financial Statements,Net worth Calculations,
Business Plans,Income and Expense projections,Balance Sheets,Customer Lists,Income Tax returns,Credit
Reports,Design,Market,and Feasibility Studies Not Paid for with Public Funds.When public financial assistance
is received,only the following remains not public: Business Plans,Income and Expense projections,Customer
lists,Income tax returns,design,market,and feasibility studies not paid for with public funds,income and expense
projections not related to financial assistance.The City does allow an applicant to submit sensitive financial information
directly to the City's financial consultant,for additional security.All data requests will be processed in accordance
with Minn.Stat. Ch. 13.
Property Owner Information (please print)Name:
Personal E-mail address:
Personal Residence Address:
Street City State Zip Code
Phone:
LegalName of Business:
'S ..;
Business E-mail address:
Business Address:
Street City State Zip Code
Check One: Proprio or _Corporation Partnership
Federal ID# a. %State ID#
x..
Agent Information (mint) Same as Property Owner Different, as below (Check one)
Name: E-mail address:
Address:
Street City State Zip Code
Phone (w): (m): (d):
Attorney Name
Address
Phone Fax Email
Accountant Name
Address
Phone Fax Email
Contractor Name
Address
Phone Fax Email
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Adopted February,2016(Expected)
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Engineer Name
Address
Phone Fax Email
Architect Name
Address
Phone Fax Email
C. SIGNATURE
I certify that all information provided in this application is true and correct to the best of my knowledge. I
authorize the City of Mounds View and its consultants to check credit references and verify financial and other
information. I further agree,if approved,to the loan security and guarantees required by the Business Subsidy
Policy. I agree to provide any additional information as may be requested by the City.
APPLICANT SIGNATURE:
TITLE: DA 1'h: :''. ..
Agreement to Pay Costs of Review
It is the policy of the City of Mounds View to require applicants to pay costs incurred by the City in reviewing and
acting upon applications,so that these costs are not borne by the taxpayers of the City.These costs include all of
the City's out-of-pocket costs for expenses,including the City's costs for review of the application by the City's
Financial Consultant and City Attorney,or other consultants,recording fees,and necessary publication costs.
The application processing fees cover anticipated costs;costs incurred above the application fee will be invoiced as
they are incurred,and payment will be due within thirty(30)days.Application fees are not refundable.If payment
is not received as required by this agreement,the City may suspend the application review process and may deny
the application for failure to comply with the requirements for processing the application.Payment for costs will
be required whether the application is granted or denied.
The undersigned has received the City's policy regarding the payment of costs of review, understands that
reimbursement to the City of costs incurred in reviewing the application will be required,agrees to reimburse the
City as required in the policy and make payment when billed by the City,and agrees that the application may be
denied for failure to reimburse the City for costs as provided in the policy.
Note:All Major shareholders will be required to sign personal guarantees and a minimum assessment
agreement if up front financing of the project is required.
APPLICANT SIGNATURE:
TITLE: DATE:
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
Page 10 of 21
D. PUBLIC PURPOSE
It is the policy of the City of Mounds View that the use of Public Financing should result in a benefit to the
public. Please indicate how this project will serve a public purpose:
Creation of jobs with livable wages and benefits.
Significantly increase the City's tax base.
Enhancement or diversification of the city's economic base.
Industrial development that will spur additional private investment in the area.
Fulfillment of defined city objectives such as those identified in the City's Comprehensive Plan,
among others.
Removal of blight or the rehabilitation of a high profile or priority site.
Enhancement or diversification of the city's housing stock.
Development that will spur additional private investment in the area.
E. JOB & WAGE GOALS
Hourly Wage B.(New)Full- C.(New) Hourly Value of Hourly Value
A.Existing time Job Part-time Job Total Jobs of Non-Health
(excluding Health
Jobs Retained Creation Creation (A+B+C) Insurance
Benefits) Insurance
within 2 years within 2 years Benefits
$9.00 to$10.99 S $
$11.00 to$12.99 $ $
$13.00 to$14.99 $ $
$15.00 to$16.99 $ $
$17.00 to$18.99 $ $
$19.00 to$20.99 $ $
$21.00 to$22.99 $ $
$23.00 to$24.99 $ $
$25.00 to$26.99 $ $
$27.00 to$28.99 $ $
$29.00 to$30.99 S $
$31.00 and higher S S
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
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F. SOURCES & USES
SOURCES NAME AMOUNT
Bank Loan $
Other Private Funds $
Owner Cash Equity $
Fed Grant/Loan $
State Grant/Loan $
EDA Funds $
Tax Abatement $
ID Bonds $
TOTAL $
USES AMOUNT
Land Acquisition
Relocation $
Demolition $
Site Development $
Construction $
Machinery&Equipment >$
Architectural&Engineering Fees $
Legal Fees $
Interest During Construction. $
Debt Service Reserve $
Financing Costs $
Soft Costs $
Contingencies $
TOTAL $
*Include term and rate of bank loan and/or other financing
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Adopted February,2016(Expected)
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G. ADDITIONAL DOCUMENTATION AND CHECKLIST
Please provide one paper and one electronic copy of following: (Incomplete applications will delay
the review of an application)
A) Application fee of$3,000.
B) Written Narrative: Please give a brief summary of your business,its products or
services,the project and how this subsidy will impact your project.The
narrative should include a statement demonstrating how the project meets the
public purpose in IV of this policy(page 5).
C) Business Plan. The business plan should include the following:
1. Description of Business
2. Ownership
3. Management
4. Date Established
5. Products/Services
6. Future Plans
7. Market for Business
D) Project Proforma'
1. Sources and uses of funds to finance the project,and
2. Operating cash flow assumptions that include:
a. Projected revenues,
b. Operating expenses,
c. Net operating income,and
d. Annual debt service and loan payments.
E)Financial Statements, for previous two years and the current year to date 1
Profit&Loss Statement
Balance Sheet
F) Financial Projections, for term of incentive,up to 10 years1
G) Personal Financial Statements,of all major shareholders,partners,and guarantors
H) Letter of Commitment,from applicant pledging to complete
during the proposed project duration
I)Letter of Commitment,from the other sources of financing,
stating terms and conditions of their participation in project completion
•
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J)Written Statement of Contact Information(Name,Company,Address,Email,
Phone,Fax) for project team,including: attorney,accountant,financing sources
(lenders,partners,etc.),parent company,architect
K) Construction Plans and Itemized Project Construction Statement
L) Attach the following documentation as Exhibits
Exhibit A—Corporation/Partnership Description
Exhibit B—List of Shareholders/Partners
Exhibit C—But-For Analysis
Exhibit D—List of Prospective Lessees (if applicable)
Exhibit E—Legal Description and PID Number(s)
M) Site and Construction Plans #4#;
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For additional confidentiality,sensitive financial documents,while not-public information,may be submitted
directly to the City's financial consultant by signing the attached confidentiality agreement and including it
with the application.
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Adopted February,2016(Expected)
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H.
CONFIDENTIALITY AGREEMENT
(Sample Agreement)
This agreement is made this day of ,20_,by and between
,a company,hereinafter"Developer,"
and Ehlers,Incorporated a Minnesota corporation,hereinafter"Ehlers."
WHEREAS,Developer is (description of project), hereinafter the
"Project,"pursuant to a (form of agreement) with
(public entity),hereinafter the"City," dated
;and
WHEREAS,Ehlers has been hired by the City to investigate certain financial aspects of the
Developer and the Project;and
WHEREAS,in conjunction with such investigation,Ehlers desires to examine the financial
information of Developer relative to Developer and the Project;and
WHEREAS,Developer is willing to disclose such information only on the condition that
such information be kept confidential.
NOW,THEREFORE,in consideration of the terms and mutual covenants contained
herein,the parties agree as follows:
1. Developer agrees to make its financial information, development pro forma and
projection,budget information,and such other financial information concerning the Project as Ehlers
may reasonably request,hereinafter the"Information,"available for inspection by Ehlers,but solely for
the purpose set forth above.
2. Ehlers shall accept the Information in strict confidence solely for that purpose and shall
make no other use of the information, or disdose it to any other person or party,including the City,
without the express written consent of Developer. Notwithstanding the foregoing,Ehlers may use the
Information in summary form only to report its findings to the City provided that Ehlers first presents
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
Page 15 of 21
its proposed report to Developer and obtains Developer's written consent to ensure that no inadvertent
disclosures of confidential information or other inaccurate information are contained in such report.
3. Inspection of the Information shall take place in such manner and at such place and
time as the parties may agree. The Information shall not be copied,duplicated,abstracted,summarized
or recorded,directly or indirectly,by any means whatsoever,without the prior consent of Developer.
4. The Information shall remain the property of Developer,and any Information provided
in tangible form shall be returned to Developer upon completion of such inspection. Any copies,
duplications, abstracts, summaries or other recordings of the Information made with Developer's
consent shall be returned to Developer upon demand.
5. Ehlers agrees that any breach of the obligation of cofideiality imposed hereby shall
constitute irreparable harm to Developer and shall entitle Developprto equitable relief enjoining any
further breaches of this Agreement,together and in conjunction with any and all such other remedies as
may be available to Developer at law or in equity.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above
written.
DEVELOPER
By
Its
EHLERS INC.
By
Its
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SAMPLE BUT-FOR ANALYSIS
WITH NO WITH
PUBLIC FINANCING PUBLIC FINANCING
SOURCES AND USES SOURCES AND USES
SOURCES SOURCES
Mortgage 9,600,000 8,900,000
Equity 2,400,000 2,400,000
Public Financing 0 700,000
TOTAL SOURCES 12,000,000 12,000,000
USES USES
Land 1,500,000 1,500,000
Site Work 300,000 300,000
Soil Correction 468,000 V 468,000
Demolition 100,000 . 100,000
Relocation 65,000 .L; 65,000
Subtotal Land Costs 2,433,000 2,433,000
Construction 6,750,000 6,750,000
Finish Manufacturing 250,000 250,000
Subtotal Construction Costs 7,000,000 7,000,000
Soft Costs 41= :350000 350,000
Taxes elfx X35,000 35,000
Finance Fees - 50 000 850,000
Project Manager ; 542,000 542,000
Developer Fee 540,000 540,000
Contingency 250,000 250,000
Subtotal Soft Costs 2,567,000 2,567,000
TOTAL USES 12,000,000 12,000,000
Income Statement Income Statement
Sq.Ft. Per Sq.Ft. Sq. Ft. Per Sq.Ft.
Rent-Space 1 100,000 $5.00 500,000 100,000 $8.00 800,000
Rent-Space 2 50,000 $4.50 225,000 25,000 $8.50 212,500
Rent-Space 3 50,000 $4.00 200,000 25,000 $9.00 225,000
Other 0 $0.00 0 0 $0.00 0
925,000 925,000
Mortgage 20 Year Term 792,446 20 Year Term 734,664
5.50%Interest 5.50%Interest
9,600,000 Principal 8,900,000 Principal
Net Income 132,554 190,336
Total Return on Equity 5.52% 7.93%
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J. PUBLIC FINANCING APPLICATION REVIEW WORKSHEET —
COMMERCIAL/INDUSTRIAL PROJECTS
TO BE COMPLETED BY CITY STAFF OR CONSULTANTS
1. The project meets the criteria set forth in Section IV of the City's Public
Financing Policy.
a) Meets at least one objective in Section II all provisions in Section III.
b) Demonstrates need for TIF with the butfor analysis.
c) The project complies with all applicable laws.
d) Consistent with all city plans and ordinances.
e) Serves at least two public purposes as defined in Section IV(E).
f) Developer has paid the application fee.
2. Ratio of Private to All Public Investment in Project: Points:
$ Private investment -,40,„- 5:1 5
$ Public Investment 4:1 4
Ratio Private: Public Financing "` r ``'0 v3:1 3
2:1 2
Less than 2:1 1
3. Job Creation in the City of Mounds View: Points:
Number of new jobs as a result of the project. 40+ 5
Number of existing/retained jobs divided by 2. 30+ 4
Total 20+ 3
10+ 2
Less than 10 1
4. Ratio of Public Investment to Job Creation: Points:
$ Public Investment $15,000 or less 5
Number of new jobs created/retained $20,000 or less 4
$ Public Investment per new job $22,000 or less 3
$25,000 or less 2
Over$25,000 1
5. Wage Level of new jobs created/retained: Points:
Minimum hourly wage Over$21/ hour 5
of jobs created/retained: $18-21 / hour 4
$14-17 / hour 3
$10-13 / hour 2
Under$10 / hour 1
6. Project size: Points:
The project will result in the construction 80,000+ 5
of square feet 65,000+ 4
50,000+ 3
35,000+ 2
25,000+ 1
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7. Market Value/Tax Base Generation: Points:
The project will result in a per square foot Industrial Commercial
estimated market value (land and building) $80/sf+ $110/sf+ 5
of $70/sf+ $100/sf+ 4
$60/sf+ $90/sf+ 3
$50/sf+ $80/sf+ 2
$40/sf+ $70/sf+ 1
8. Type of Project: Points:
100%Owner Occupied 5
Mix Owner Occupied&Investment 4
Investment Property 3
9. Use: Points:
Manufacturing 5
Research&Development 4
Commercial Redevelopment 3
Warehouse/Distribution 2
Housing 1
10. Likelihood that the project will result in Points:
unsubsidized,spin-off development.
High 5
Moderate 3
Low 1
Sub-Total Points: of a possible 45 points.
11. Bonus Points Bonus Points:
The project will be 100%Pay-asyougo TIF. 3 points
The project contributes to the goals of the Met-Council. 2 points
• Product promotes Industry Clusters,Sensible Land Use,
Transportation,OR Workforce Housing
• Project utilizes significant
energy efficient design&/or
materials in construction.
Total Points:
Overall project analysis: High 45-38 points
Moderate 37-29 points
Low 28-20 points
Not Eligible 19-0 points
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
Page 19 of 21
PUBLIC FINANCING APPLICATION REVIEW WORKSHEET -
HOUSING PROJECTS
TO BE COMPLETED BY CITY STAFF OR CONSULTANTS
1. The project meets the criteria set forth in Section IV of the City's Public
Financing Policy.
a) Meets at least one objective in Section II all provisions in
Section III.
b) Demonstrates need for TIF with the but for analysis.
c) The project complies with all applicable laws.
d) Consistent with all city plans and ordinances.
e) Serves at least two public purposes as defined in Section IV(E).
f) Developer has paid the application fee.
2. Ratio of Private to All Public Investment in Project: Points:
Greater than 7:1 10
$ Private investment 6:1 8
$ Public Investment 5:1 6
Ratio Private: Public Financing 4:1 4
3:1 2
Less than 3:1 1
3. Project provides housing that is restricted Points:
to persons 55 years and older: 10
4. Market Value/Tax Base Generation: Points:
Project will result in an estimated
market value per unit $135,000/Unit 5
(land and building) of $125,000/Unit 4
$115,000/Unit 3
$105,000/Unit 2
$ 95,000/Unit 1
5. Project proposes rehabilitation of existing
housing,housing stock, and maximizes
utilization of existing infrastructure: Points:
10
6. Project proposes a location near existing
jobs,transportation,recreation,retail services,
social services, and schools: Points:
3
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
Page 20 of 21
7. Project includes community/ neighborhood: Points:
facility (pool, community center, etc.)
Points based on scale of improvement (1-5) Yes 5
8. Type of Housing Project: Points:
100%Owner Occupied 2
Investment Property 1
9. Likelihood that the project will result in Points:
unsubsidized, spin-off development. High 5
Moderate 3
Low 1
Sub-Total Points: of a possible 50 points.
10. Bonus Points Bonus Points:
The project will not be 100%Pay-asyougo TIF. -5 points
The project does not require modification to land use plan. 2 points
The project contributes to the goals of the Met-Council. 2 points
• Product promotes Sensible Land Use,Livable Communities criteria,
Transportation, OR Workforce Housing,
• sensible use of energy,and/or project utilizes significant
energy efficient design&/or materials in construction.
Total Points:
Overall project analysis: Rank Points Max eligible
High 45-50 points 100%
Moderate 37-44 points 85%
Low 30-36 points 65%
Not Eligible 0-29 points
City of Mounds View Public Financing Policy&Application
Adopted February,2016(Expected)
Page 21 of 21