HomeMy WebLinkAboutResolution 6745RESOLUTION NO. 6745
CITY OF MOUNDS VIEW
RAMSEY COUNTY
STATE OF MINNESOTA
RESOLUTION ADOPTING A MODIFICATION TO THE PROJECT PLAN FOR THE
MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT AND A MODIFICATION TO
THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. S THEREIN.
BE IT RESOLVED by the City Council (the "Council"} of the City of Mounds View, Minnesota (the "City"),
as follows:
Section 1. Recitals.
1.01. The Board of Commissioners (the "Board") of the Mounds View Economic Development Authority
(the "EDA") has heretofore established the Mounds View Economic Development Project and adopted the Project
Plan therefor and established Tax Increment Financing District No. 5 and adopted the Tax Increment Financing Plan
therefor. It has been proposed that the City adopt a Modification to the Project Plan (the "Project Plan Modification")
for the Mounds View Economic Development Project and adopt a Modification to the Tax Increment Financing Plan
(the "Tax Increment Plan Modification" or together with the Proj ect Plan Modification, the "Modifications") for Tax
Increment Financing District No. 5 (the "District "), all pursuant to and inconformity with applicable law, including
Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, inclusive as amended (the
"Act"), all as reflected in the Modifications, and presented for the Council's consideration.
1.02. The Council has investigated the facts related to the Modifications and has caused the Modifications
to be prepared.
1.03. .The City has performed all actions required by law to be performed prior to the adoption and
approval of the proposed Modifications, including, but not limited to, notification of Ramsey County and Independent
School District No. 621 having taxing jurisdiction over the property included in the District, and the holding of a
public hearing upon published notice as required bylaw.
1.04. The City is not modifying the boundaries of the Mounds View Economic Development Project.
1.05. The City is not modifying the boundaries nor term of the District.
Section 2. Findings for the Tax Increment Plan Modification
2.01. The Council hereby reaffirms the original findings for the District, namely that the when the District
was established, it was established as an "economic development district" established under the 2005 Laws of
Minnesota, Chapter 152, Article 2, Section 26 (H.F No. 2498) (the "Special Legislation").
In addition, the City makes the following fmdings:
(a) The Tax Increment Plan Modification conforms to the general plan for development or
redevelopment of the City as a whole. The reason for supporting this finding is that the Tax
Increment Plan Modification will generally complement and serve to implement policies adopted in
the City's comprehensive plan.
(b) The Tax Increment Plan Modification will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development or redevelopment of the Mounds View Economic
Development Project by private enterprise. The reason for supporting this finding is that the
development activities are necessary so that development and redevelopment by private enterprise
can occur within the Mounds View Economic Development Project.
(c) The development and redevelopment efforts, in the opinion of the City, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and
therefor the use of tax increment financing is deemed necessary.
Section 3. Public Purpose
3.01. The adoption of the Modifications conforms in all respects to the requirements of the Act and will
help fulfill a need to develop an area of the State which is already built up, to provide employment opportunities, to
improve the tax base and to improve the general economy of the State and thereby serves a public purpose.
Section 4. Approval and Adoption of the Modifications; Filing.
4.01. The Modifications are hereby approved, and shall be placed on file in the office of the City
Administrator. Approval of the Modifications does not constitute approval of any project or a development agreement
with any developer.
4.02. The staff of the City are authorized to file the Modifications with the Commissioner of Revenue, the
Office of the State Auditor and the Ramsey County Auditor.
4.03. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with
the implementation of the Modifications and for this purpose to negotiate, draft, prepare and present to this Council
for its consideration all further modifications, resolutions, documents and contracts necessary for this purpose.
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Dated: February 13, 2006 '~
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~EHLERS
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Ehlers & Associates, Inc.
City of Mounds View
Modification of Tax Increment Financing District No. 5
Overview
The following summary contains an overview of the basic elements of the Modification of the Tax
Increment Financing Plan for Tax Increment Financing District No. 5. More detailed information on each
of these topics can be found in the complete TIF Plan.
Proposed action: Modification to the Project Plan for the Mounds View Economic Development
Project and the Plan for Tax Increment Financing District No. 5. Generally, the
substantive changes include a budget increase for Phase II which is being
considered to be constructed with Phase I of the Project.
Type of TIF District: A special legislation economic development district
Parcel Numbers: No changes to the District boundary are being made with this modification.
Proposed The Plan is being modified to facilitate development of Phases I and II of a
Development: business campus for Medtronic, which includes approximately 1,200,000 s.f. of
office space in the City of Mounds View. Please see Appendix A for further
project information.
Maximum duration: The duration of the District will be 25 years from the date of receipt of the first
increment (26 years of increment). The date of receipt of the first tax increment
is expected to be 2008. Thus, it is estimated that the District, including any
modifications of the TIF Plan for subsequent phases or other changes, would
terminate after 2033, or when the TIF Plan is satisfied.
Fiscal Disparities The City will choose to -calculate fiscal disparities by clause b (inside the
Election: District}.
Estimated annual tax The original annual increment was estimated to be up to $1,874,119. With the
increment: addition of Phase R, the annual increment is estimated to be up to $2,756,126.
TIFDistrict Ovewiew
• Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that maybe
expended:
LandBuilding Acquisition ................................................................... $2,100,000
Site Improvements/Preparation ............................................................ $6,000,000
..............................................................
Public Utilities ........................... ,
Parking Facilities .................................................................................. $3,000,000
Roads ....................................................................................................... $500,000
Billboard Removal /Relocation ............................................................... $930,000
Demolition/Relocation ............................................................................ $500,000
Interest ................................................................................................ $16,947,319
Administrative Costs (up to 10%) ........................................................ $2,122,681
PROJECT COSTS TOTAL .................................................................. 32,700,000
The budget is being modified to reflect additional costs that may occur due to
Phase II construction. The maximum amount that may be expended is as
follows:
Land/Building Acquisition ................................................................................. $0
Site Improvements/Preparation .......................................................................... $0
Public Utilities .................................................................................................... $0
~ Parking Facilities ................................................................................ $22,900,000
i Roads .................................................................................................................. $0
Billboard Removal /Relocation .......................................................................... $0
Demolition/Relocation ....................................................................................... $0
Interest ................................................................................................ $21,350,000
I Administrative Costs (up to 10%) ........................................................ $2,450,000
'i PROJECT COSTS TOTAL ..................................................................46,700,000
See Subsection 2-10, page 2-7 of the TIF Plan for the full budget authorization.
Additional uses of funds are authorized which include inter-fund loans and
transfers and bonded indebtedness. The actual amount of tax increment
assistance will be determined for the project after the costs of public
improvements are known and documented and the developer provides a detailed
project proforma.
Form of financing: The project will be fmanced primarily through apay-as-you-go note
Administrative fee: Up to 10% of annual increment, if costs are justified. The Plan and Developer
Agreement authorize up to 5%.
Interfund Loan If the City wants to pay for administrative or other expenditures from a tax
Requirement: increment fund, it is recommended that a resolution authorizing a loan from
another fund be passed PRIOR. to the issuance of the check.
The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required
pursuant to MS., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution.
Page 2
!FREERS
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TIFDistrict Overview
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MAP OF TAX INCREMENT FINANCING DISTRICT NO. 5 AND
THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT
1'IF Distrlc4 Totals;.
iVDTE: The Mounds View Economic Bevelopment Project Boundaries are
Coterminous with the G.orporate Boundaries ~f the City ofi Mounds View.
Map ReviseC January P3; 2006 File Name: ~;comdevlproiects/2005 TIF
', FREERS
Mounds 1~iew T1F Dstruts
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MODIFICATION TO THE PROJECT PLAN FOR THE
MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT
and the
TAX INCREMENT FINANCING PLAN
for the modification of
TAX INCREMENT FINANCING DISTRICT NO. 5
(an economic development district)
within
THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT
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MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
CITY OF MOUNDS VIEW
RAMSEY COUNTY
STATE OF MINNESOTA
Public Hearing: August 22, 2005
Adopted: August 22, 2005
Modified:
E H L E R S Prepared by: FREERS & ASSOCIATES, INC.
3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105
& ASSOCIATES i N c 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com
•
• TABLE OF CONTENTS
(for reference purposes only)
SECTION I -MODIFICATION TO THE PROJECT PLAN
FOR THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT .............. 1-1
Foreword ............................................................. 1-1
SECTION II -TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 5 .......................... 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. Project Plan Overview ..................................... 2-2
Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2
Subsection 2-6. Classification of the District ................................. 2-3
Subsection 2-7. Duration of the District ...................................... 2-3
Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Cap acity
Value/Increment and Notification of Prior Planned Improvements ................ 2-4
Subsection 2-9. Sources of Revenue/Bonded Indebtedness .................... 2-6
Subsection 2-10. Use's of Funds ........................................... 2-7
Subsection 2-11. Fiscal Disparities Election .:............................... 2-10
Subsection 2-12. Business Subsidies ...................................... 2-10
Subsection 2-13. County Road Costs ...................................... 2-11
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions ................ 2-11
Subsection 2-15.
• Subsection 2-16. Supporting Documentation ................................
Definition of Tax Increment Revenues ....................... 2-13
2-14
Subsection 2-17. Modifications to the District ................................ 2-14
Subsection 2-18. Administrative Expenses .................................. 2-15
Subsection 2-19. Limitation of Increment ................................... 2-15
Subsection 2-20. Use of Tax Increment .................................... 2-16
Subsection 2-21. Excess Increments ...................................... 2-17
Subsection 2-22. Requirements for Agreements with the Developer .............. 2-17
Subsection 2-23. Assessment Agreements ................................. 2-17
Subsection 2-24. Administration of the District ............................... 2-17
Subsection 2-25. Annual Disclosure Requirements ........................... 2-18
Subsection 2-26. Reasonable Expectations ................................. 2-18
Subsection 2-27. Other Limitations on the Use of Tax Increment ................. 2-18
Subsection 2-28. Summary ......:....................................... 2-19
APPENDIX A
PROJECT DESCRIPTION ................................................ A-1
APPENDIX B
MAP OF THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT
AND TAX INCREMENT FINANCING DISTRICT ............................... 6-1
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
BUT/FOR QUALIFICATIONS .............................................. F-1
APPENDIX G
SPECIAL LEGISLATION ................................................. G-1
•
• SECTION 1-MODIFICATION TO THE PROJECT PLAN
FOR THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT
Foreword
The following text represents a Modification to the Project Plan for the Mounds View Economic
Development Project. This modification represents a continuation ofthe goals and objectives set forth in the
Project Plan for the Mounds View Economic Development Project. Generally, the substantive changes
include the establishment of Tax Increment Financing District No. S.
For further information, a review of the Project Plan for the Mounds View Economic Development Project,
adopted May 9, 1994 and amended on August 14, 2000 and most recently on 3une 28, 2004, is recommended.
It is available from the City Administrator at the City of Mounds View. Other relevant information is
contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the
Mounds View Economic Development Project,
• Mounds View Economic Development Authority Modification to the Project Plan for the Mounds View Economic Development Project 1-1
• SECTION Il -TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 5
Subsection 2-1. Foreword
The Mounds View Economic Development Authority (the "EDA"), the City of Mounds View (the "City"),
staff and consultants have prepared the following information to expedite the establishment of Tax Increment
Financing District No. 5 (the "District"}, an economic development tax increment financing district
established under the 2005 Laws of Minnesota, Chapter 152, Article 2, Section 26, located in the Mounds
View Economic Development Project.
Subsection 2-2. Statutory Authority
Within the City, there exists areas where public involvement is necessary to cause development or
redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota
Statutes ("M.S.'), Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to
469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in fmancing
public costs related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District
No. 5. Other relevant information is contained in the Modification to the Project Plan for the Mounds View
Economic Development Project.
Subsection 2-3. Statement of Objectives
• The District currently consists of five parcels of land and adjacent and internal rights-of--way. The District
is being created to facilitate development of Phase I of a business campus for Medtronic, which includes
approximately 820,000 s.f. of office space in the City of Mounds View. Please see Appendix A for further
project information. A Developer Agreementhas been authorized, contingent on the approval ofthe proposed
TIF Plan and establishment of Tax Increment Financing District No. 5. Development is likely to begin in
2005. This TIF Plan is expected to achieve many of the objectives outlined in the Project Plan for the
Mounds View Economic Development Project.
The activities contemplated in the Modification to the Project Plan 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 the Mounds View Economic Development Project and the District.
(As Modified February 13, 2006)
The District originally consisted of five parcels of land and adjacent and internalrights-of--way. The District
was created to facilitate development of Phase I of a business campus for Medtronic and is beiag modiSed
to include Phases I and II, which includes approximately 1,200,000 s.f. of office space in the City of
Mounds View. Please see Appendix A for further project information. A Developer Agreement has been
entered into and may be ammended, contingent on the approval of the proposed Modification to
Financing District No. 5. Development is likely to begin in 2006. This TIF Plan is expected to achieve
many of the objectives outlined in the Project Plan for the Mounds View Economic Development Project.
This modification does not increase the boundaries of the District.
The activities contemplated in the Modification to the Project Plan 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 the Mounds View Economic Development Project and the District.
• Mounds View Economic Development Authority Tar. Increment Financing Plan for Tax Increment Financing District No. S 2-I
Subsection 2-4, Project Ptan Overview
1. Property to be Acquired -Selected properly Iocated within the District may be acquired by
the EDA or City and is further described in this TIF Plan.
2. Relocation -Relocation services, to the extent required by law, are available pursuant to
M.S, 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 EDA or 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 EDA or City may perform or provide for some or all necessary acquisition, construction,
relocation, demolition, and required utilities and public street work within the District.
5. The City proposes infrastructure facilities within the District, no additional open space
within the District, no environmental controls specific to the District, proposed reuse of
private property as an business campus, and continued operation of the Mounds View
Economic Development Project after the capital improvements within the Mounds View
Economic Development Project have been completed.
Subsection 2-S. 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 below. See the map in Appendix B for further information on the location of the District.
Parcel Numbers
OS-30-23-13-0001
OS-30-23-21-0005*
OS-30-23-21-0006*
OS-30-23-24-0059
OS-30-23-24-0060
*These parcels are being removed from Tax Increment Financing District
No. 3 to be included in Tax Increment Financing District No. 5.
(As Modified February 13, 2006)
*These parcels were removed from Tax Increment Financing District No.
3 to be included in Tax Increment Financing District No. 5.
Pursuant to the 2005 Laws of Minnesota, Chapter 152, Article 2, Section 26 (H.FNo. 2498) (the "Special
Legislation') Subd. 1, paragraph (b), the "area" is bounded by, and including, on the north County Road J
west of Coral Sea Street and 82nd Lane NE east of Coral Sea Street, on the east Coral Sea Street north of
82nd Lane NE and Interstate Highway 35W south of 82nd Lane NE, on the south and southwest U.S.
Highway 10, and on the west the western boundary of Outlot A, Sysco, according to the recorded plat thereof,
and situated in Ramsey County, Minnesota.. A copy of the 2005 Laws of Minnesota, Chapter 152, Article
2, Section 26 (H.F. No. 2498) can be found in Appendix G.
The EDA or City may acquire any parcel within the District including interior and adjacent street rights of
Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 Z-2
• way. Any properties identified for acquisition will be acquired by the EDA or 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 EDA or City may acquire property by gift,
dedication, condemnation or direct purchase from willing sellers in order to achieve the obj ectives ofthis 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 EDA and City, in determining the need to create a tax increment fmancing district in accordance with
M. S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is an
economic development district pursuant to M.S., Section 469.174, Subd. 12 as defined below:
"Economic development district" means a type of tax increment financing district which consists of any
project, or portions of a project, which the authority finds to be in the public interest because:
(1) it will discourage commerce, industry, or manufacturingfrom moving their operations
to another state or municipality; or
(2) it will result in increased employment in the state; or
(3) it will result in preservation and enhancement of the tax base of the state.
The District is in the public interest because it will meet the statutory requirement from clause 1, 2 and 3.
Pursuant to the Special Legislation, Subd 2(d), the limitations on spending increment outside ofthe district
• under M.S., Section 469.1763, Subd. 2, and on spending increment for developments more than 15 percent
of the square footage of which is used for purposes other than those listed in M.S., Section 469.176, Subd.
4c, do not apply.
Pursuant to MS., Sections 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 or 273.112 or Chapter 473H for taxes payable in
any of the five calendar years before the filing of the request for certification of the District.
Pursuant to the Special Legislation, Subd. 1(a), City may establish within the corporate boundaries ofthe City
one or more economic development tax increment financing districts subject to the special rules under
subdivision 2 and the districts must be located on property that is exempt from taxation for property taxes
payable in 2005 and within the area defined in paragraph (b).
The Special Legislation, Subd. 3 allows the authority to establish tax increment financing districts under the
Special Legislation until December 31, 2015.
Subsection 2-7. Duration of the District
Pursuant to M.S., Section 469.175, Subd. 1, andM.S., Section 469.176, Subd. 1, the duration of the District
must be indicated within the TIF Plan. Pursuant to the Special Legislation, Subd. 2(b), the duration of the
District will be 25 years after receipt of the first increment by the EDA or City. The date of receipt by the
City of the first tax increment is expected to be 2007. Thus, it is estimated that the District, including any
modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2032, or when
the TTF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally
required date.
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tar, Increment Financing District No. 5 2-3
• (As Modified February 13, 2006)
Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District
must be indicated within the TIF Plan. Pursuant to the Special Legislation, Subd. 2(b), the duration of the
District will be 25 years after receipt of the first increment by the EDA or City. The date of receipt by the
City of the first tax increment is expected to be 2008. Thus, it is estimated that the District, including any
modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2033, or when
the TIF Plan is satisfied. The EDA or 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 M.S., 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
at the time the property is classified as taxable.
Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 2007) 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 EDA or City.
The original local tax rate for the District will be the local tax rate for taxes payable 2006, assuming the
request for certification is made before June 30, 2006. 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 the Mounds View Economic Development Project,
upon completion of the project, will annually approximate tax increment revenues as shown in the table
below. The EDA and Ciiy request 100 percent of the available increase in tax capacity for repayment of its
obligations and current expenditures, beginning in the tax year payable 2007. -The Project Tax Capacity
(PTC) listed is an estimate of values when the project is completed.
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-4
• Project Estimated Tax Capacity upon Completion (PTC)* $2,587,865
Original Estimated Net Tax Capacity (ONTC) $143,814
Fiscal Disparities Reduction $953,911
Estimated Captured Tax Capacity (CTC) $1,490,140
Original Local Tax Rate 125.768% Pay 2005
Estimated Annual Tax Increment (CTC x Local Tax Rate} $1,874,119
Percent Retained by the EDA 100%
*The cashflow.estitnates a 3% inflation factor over the term of the District.
Pursuant to M.S., Section 469.177, Subd. 4, the EDA 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.
• (As ModiSed February 13, 2006)
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 the Mounds View Economic Development Project,
upon completion of the project, will annually approximate tax increment revenues as shown in the table
below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its
obligations and current expenditures, beginning in the tax year payable 2008. The Project Tax Capacity
(PTC) listed is an estimate of values when the project is completed.
Project Estimated Taz Capacity upon Completion (PTC)* $3,901,440
Original Estimated Net Taz Capacity (ONTC) $182,018
Fiscal Disparities Reduction $1,475,513
Estimated Captured Taa Capacity (CTC) $2,243,909
Original Local Taz Rate 122.827% Estimated
Pay 2006
Estimated Annual Taz Increment (CTC z Local Taz Rate) $2,756,126
Percent Retained by the EDA 100%
*The cashflow estimates a 3% inflation factor over the term of the District.
• Mounds View $conomic Development Authority Tax Increment Financing PSan for Tax Increment Financing District No. 5 2-5
• Subsection 2-9. Sources of Revenue/Bonded Indebtedness
Public improvement costs, acquisition, relocation, utilities, parking facilities, streets, billboard relocation and
removal, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily
through the annual collection of tax increments. The EDA or City reserves the right to use other sources of
revenue legally applicable to the EDA or City and the TIF Plan, including, but not limited to, special
assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale
of land, other contributions from the developer and investment income, to pay for the estimated public costs.
The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF
Plan. As presently proposed, the project will be financed by a Limited Tax Increment Revenue Note (pay-as-
you-go note) and possibly a portion through interfund loans. Additional indebtedness may be required to
finance other authorized activities. The total principal amount of bonded indebtedness, including a general
obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing will not exceed
$14,800,000 without a modification tb the TIF Plan pursuant to applicable statutory requirements. It is
estimated that up to $5,000,000 in interfund loans may be financed with tax increment revenues. It is
estimated that up to $5,000,000 in transfers may be financed with tax increment revenues. It is estimated that
up to $14,800,000 in Limited Tax Increment Revenue Note proceeds may be financed with tax increment
revenues.
This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The EDA or City
may also finance the activities to be undertaken pursuant to the TIF Plan through loans from funds of the
EDA or City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a
developer.
The estimated sources of funds for the District are contained in the table below.
SOURCES OF FUNDS TOTAL
Tax Increment $32,600;000
Interest Revenue $100,000
PROJECT REVENUES $32,700,000
Interfund Loans $5,000,000
Transfers $5,000,000
TIF Note $14,800,000
(As Modified February 13, 2006)
Public uprovement costs, acquisition, relocation, utilities, parking facilities, streets, billboazd relocation and
removal, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily
through the annual collection of tax increments. The EDA or City reserves the right to use other sources. of
revenue legally applicable to the EDA or City and the TIF Plan, including, but not limited to, special assess-
ments,general property taxes, state aid for road maintenance and construction, proceeds from the sale of land,
other contributions from the developer and investment income, to pay for the estimated public costs.
The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF
Plan. As presently proposed, the prof ect will be financed by a Limited Tax Increment Revenue Note (pay-as-
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2~
• you-go note) and possibly a portion through interfund loans. Additional indebtedness may be required to
finance other authorized activities. The total principal amount of bonded indebtedness, including a general
obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing will not exceed
$22,900,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. It is
estimated that up to $5,000,000 in interfund loans may be financed with tax increment revenues. It is
estimated that up to $5,000,000 in transfers maybe financed with tax increment revenues. It is estimated that
up to $22,900,000 in Limited Tax Increment Revenue Note proceeds may be financed with tax increment
revenues.
This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The EDA or City
may also finance the activities to be undertaken pursuant to the TIF Plan through loans from funds of the
EDA or City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a
developer.
The estimated sources of funds for the District are contained in the table below.
SOURCES OF FUNDS TOTAL
Tax Increment
$46,640,000
Interest Revenue $100,000
PROJECT REVENUES $46,700,000
Interfund Loans
$5,000,000
• Transfers $5,000,000
TIF Note $22,900,000
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a proposal to facilitate development of an approximate
820,000 sq. ft, business campus for Medtronic, Inc. The EDA and City have determined that it will be
necessary to provide assistance to the project for certain costs. The EDA 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.
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-7
• USES OF FUNDS TOTAL
Land/Building Acquisition $2,100,000
Site Improvements/Prepazation $6,000,000
Public Utilities $600,000
Parking Facilities $3,000,000
Roads $500,000
Billboard RemovaURelocation $930,000
Demolition/Relocation $500,000
Interest $16,947,319
Administrative Costs (up to 10%) $2,122,681
PROJECT COSTS TOTAL $32,700,000
Interfund Loans $5,000,000
Transfers $5,000,000
TIF Note Principal $14,800,000
The above budget is organized according to the Office of State Auditor (OSA) reporting forms.
It is estimated that the cost of improvements, including administrative expenses which will be paid or
• financed with tax increments, will equal $57,500,000 as is presented in the budget above.
Estimated costs associated with the District aze subject to change among categories without a modification
to this TIF Plan. 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 the Special Legislation, Subd. 2, paragraph (d) provides that except as provided in paragraph (e),
increments may only be expended within the area defined in the Special Legislation, Subd. 1, paragraph (b),
and related to development occurring within the area defined in the Special Legislation, Subd. 1, paragraph
(b), whether or not included in a tax increment financing district. Increments may only be spent on one or
more of the following costs, improvements or activities:
(1) acquisition and removal of existing billboards;
(2) acquisition of land and easements, if the parcel is occupied by a building constructed before 1990;
(3) sanitary sewer, sewer, and water improvements;
(4) road improvements;
(5) parking, including structured pazking;
(6) administrative expenses;
(7) wetland mitigation;
(8) soils correction; and
(9) environmental cleanup.
(As ModiSed February 13, 2006)
Currently under consideration for the District is a proposal to facilitate development of an approximate
.1,200,000 sq. fit. business campus for Medtronic, Ino, The EDA and City have determined that it will be
necessary to provide assistance to the project for certain costs. The EDA has studied the feasibility of the
development or redevelopment of property in and around the District. To facilitate the establishment and
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-8
• 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.
USES OF FUNDS TOTAL
Land/Building Acquisition $0
Site Improvements/Prepazation $0
Public Utilities $0
Parking Facilities $22,900,000
Roads $0
Billboazd Removal/Relocation $0
Demolition/Relocation $0
Interest $21,350,000
Administrative Costs (up to 10%) $2,450,000
PROJECT COSTS TOTAL $46,700,000
Interfund Loans $5,000,000
Transfers $5,000,000
TIF Note Principal $22,900,000
• The above budget is organized according to the Office of State Auditor (OSA) reporting forms.
It is estimated that the cost of improvements, including administrative expenses which will be paid or
financed with tax increments, will equal $79,600,000 as is presented in the budget above.
Estimated costs associated with the District are subject to change among categories without a modification
to this TIF Plan. 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 the Special Legislation, Subd. 2, paragraph (d) provides that except as provided in paragraph (e),
increments may only be expended within the area defined in the Special Legislation, Subd. 1, paragraph (b),
and related to development occurring within the area defined in the Special Legislation, Subd. 1, paragraph
(b), whether or not included in a tax increment financing district. Increments may only be spent on one or
more of the following costs, improvements or activities:
(10) acquisition and removal of existing billboazds;
(11) acquisition of land and easements, if the parcel is occupied by a building constructed before
1990;
(12) sanitary sewer, sewer, and water improvements;
(13) road improvements;
(14) pazking, including structured parking;
(15) administrative expenses;
(16) wetland mitigation;
(17) soils correction; and
(18) environmental cleanup.
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-9
• Subsection 2-11. Fiscal Disparities Election
Pursuant to the Special Legislation, Subd. 2(~, the limitation on the ability to elect the method of computation
under M. S., Section 469.177, Subd. 3, for an economic development district does not apply and the EDA or
City may elect the method of computation under pazagraph (a) or (b) of sectionM.S., Section 469.177, Subd.
3. The EDA will choose to calculate fiscal disparities by clause b (inside the District). If the calculations
pursuant to M.S., Section 469.177, Subd. 3, clause b, (inside the District) are followed, the following method
of computation shall apply:
(b) The following method ofcomputation applies to any economic development districtfor which the
request for certiftcation was made after June 30, 1997, and to any other district for which the
governing body, by resolution approving the tax increment f nancingplan pursuant to M.S, Section
469.175, Subd. 3, elects:
(1) The original net tax capacity shall be determined before the application of the fscal
disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude
any fiscal disparity commercial-industrial net taz 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
thereofwhich the authority has designated,. in its tax incrementfinancingplan, 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 authority from
the net taz 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 taz rate to the retained captured net tax capacity of the authority is the tax
increment of the authority.
Subsection 2-12. Business Subsidies
Pursuant to M. S. Sections 116J.993, Subd. 3, the following forms of financial assistance aze not considered
a business subsidy:
(1) A business subsidy of less than $25,000;
(2) Assistance that is generally available to all businesses or to a general class of similaz 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 M.S., Section 116J.552, 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;
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tar. Increment Financing District No. 5 2-I O
• (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) Indirect benefits derived from assistance to educational institutions;
(14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;
(15) Assistance for a collaboration between a Minnesota higher education institution and a business;
(16) Assistance for a tax increment financing soils condition district as defined under 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 yeaz's estimated market value;
(18) General changes in tax increment financing law and other general tax law changes of a principally
technical nature.
(19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
(20) Funds from dock and wharf bonds issued by a seaway port authority;
(21) Business loans and loan guarantees of $75,000 or less; and
(22) Federal loan funds provided through the United States Department of Commerce, Economic
• Development Administration.
The EDA will comply with M.S., Section 116J.993 to 116J.995 to the extent the tax increment assistance
under this TIF Plan does not fall under any of the exemptions listed on the previous page.
Subsection 2-13. County Road Costs
Pursuant to M.S., Section 469.175, Subd. 1 a, the county board may require the EDA or 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 judgement 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
yeazs 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 EDA or City within forly-
five days of receipt of this TIF Plan.
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 EDA or 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:
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-I1
IMPACT ON TAX BASE
2004/2005 Estimated Captured
Total Net Tax Capacity (CTC) Percent of CTC
Tax Capacity Uyon Com~etion to Entity Total
Ramsey County 372,289,367 1,490,140 0.4003%
City of Mounds View 6,679,189 1,490,140 22.3102%
Mounds View ISD No. 621 70,841,477 1,490,140 2.1035%
IlViPACT ON TAX RATES
2004!2005 Percent Potential
Extension Rates of Total CTC Taxes
Ramsey County 49.210% 39.13% 1,490,140 733,298
City of Mounds View ~ 46.966% 37.34% 1,490,140 699,859
Mounds View ISD No. 621 22.112% 17.58% 1,490,140 329,500
Other 7.480% 5.95% 1,490,140 111,462
Total 125.768% 100.00% 1,874,119
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the actua12004/Pay 2005 rate. The total net capacity for the entities listed above are
based on actual Pay 2005 figures. The District will be certified under the actua12005/Pay 2006 rates, which
were unavailable at the time this TIF Plan was prepared.
(As Modified February 13, 2006)
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 EDA or City has determined that such
development or redevelopment would not occur "but for" tax increment fmancing 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:
• Mounds View Economic Developmatt Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-12
• IIVIPACT ON TAX BASE
2005!2006 Estimated Captured
Total Net Tag Capacity (CTC) Percent of CTC
Tag Capacity Upon Completion to Entity Total
Ramsey County 420,951,592 2,243,909 0.5331%
City of Mounds View 7,580,925 2,243,909 29.5994%
Mounds View ISD No. 621 79,119,945 2,243,909 2.8361%
IlVIPACT ON TAX RATES
2005/2006 Percent Potential
Extension Rates of Tota( CTC Taxes
Ramsey County 46.686% 38.01% 2,243,909 1,047,591
City of Mounds View 43.740% 35.61% 2,243,909 981,486
Mounds View ISD No. 621 23.313% 18.98% 2,243,909 523,123
Other 9.088% 7.40% 2 4,2 3.909 203,926
Total - 122.827% 100.00% 2,756,126
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the estimated 2005/Pay 2006 rate. The total net capacity for the entities listed above
are based on estimated Pay 2006 figures. The District will be certified under the actua12005/Pay 2006 rates,
which were unavailable at the time this TIF Plan was prepared.
Subsection 2-15. Suppofing Documentation
Pursuant to M.S. Section 469.175 Subd 1, 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 (2)
and the findings are required in the resolution approving the TIF district. Following is a list of reports and
studies on file at the City that support the Authority's findings:
1. Bridges Boundary and Topographic Survey (prepared bt E.G. Rud & Sons, Inc., October 21, 2004)
2. Alternative Urban Areawide Review for the Bridges Office Development (prepared by RLK-
Kuusisto, November 17, 2004)
3. Amendment to the Alternative Urban Areawide Review for the Bridges Office Development
(prepared by RLK-Kuusisto, April 22, 2005)
4. Traffic Impact Study for the Bridges Office Redevelopment (prepared by RLK-Kuusisto, November
17, 2004)
5. Traffic Impact Study for the Bridges Golf Course Site (prepared by SRF Consulting Group, February
22, 2005)
6. Bridges Golf Course Wetland Delineation Report (prepared by SEH, September 23, 2004)
7. Phase I Environmental Site Assessment for Bridges Area in Mounds View and Blaine (prepared by
Conestoga-Rovers & Associates, October 2004)
8. Phase II Environmental Site Assessment of Bridges Property in Mounds View (prepared by
Conestoga-Rovers & Associates, February 17, 2005)
• Mounds View Economic Development Authority Tar. Increment Financing Plan for Tax Increment Financing District No. 5 2-13
• 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 nettax capacity, but excluding any excess taxes, as computed underM.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 Ill 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 enlazgement of the geographic area of the Mounds View Economic Development
Project or the District, if the reduction does not meet the requirements of M.S, 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, or to increase or decrease the amount of interest on the debt to be capitalized;
• 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City;
5. Increase in the estimate ofthe cost ofthe project, 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 EDA or 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. 4(~, the geographic area of the District may be reduced, but shall
not be enlazged after five years following the date of certification of the original net tax capacity by the
county auditor. If an economic development district is enlazged, the reasons and supporting facts for the
determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 12 must be
documented in writing and retained. The requirements of this pazagraph do not apply if (1) the only
modification is elimination of parcel(s) from the Mounds View Economic Development Proj ect or 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 EDA agrees that,
notwithstanding M. S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than
the current net tax capacity of the parcel(s) eliminated from the District.
The EDA or City must notify the County Auditor of any modification that reduces or enlarges the geographic
area of the Mounds View Economic Development Project or the District. Modifications to the District in the
form of a budget modification or an expansion of the boundaries will be recorded in the Tff Plan.
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-14
. Subsection 2-18. Administrative Expenses
In accordance with M.S., Section 4b9.174, Subd. 14, administrative expenses means all expenditures of the
EDA or 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
project;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the
project; or
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 4b9.178; or
5. Amounts used to pay other fmancial 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,
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 4b9.174, Subd. 25, clause (1), from the District,
whichever is less.
Pursuant to M.S., Secfion 4b9.17b, Subd. 4h, tax increments may be used to pay for the County's actual
• administrative expenses incurred in connection with the District. 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 4b9. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36
percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount
deducted to the State Treasurer 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
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 4b9.17b, Subd. b:
if, after four years from the date of certification of the original net tax capacity of the taz increment
ftnancing districtpursuant to M.S., Section 4b9.177, 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 f nancing district by tlse authority or by the owner of the parcel
in accordance with the tax incrementfinancingplav, no additional tax increment may be taken from
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tar. Increment Financing District No. 5 2-15
• 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 increment financing plan, the authority shall cert~ to the county auditor that the activity has
commenced and the county auditor shall cert~ the net tax capacity thereof as most recently cert f ed
by the commissioner of revenue 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 EDA or City or a property owner must improve parcels within the District by approximately August,
2009 and report such actions to the County Auditor.
Subsection 2-20. Use of Tax Increment
The EDA or 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 cost ofredevelopment ofthe Mounds View Economic Development
Project pursuant to the 112S., Sections 469.090 to 469.1082;
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
EDA or City or for the benefit of the Mounds View Economic Development Project 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.
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.
Tax increments generated in the District will be paid by Ramsey County to the EDA for the Tax Increment
Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an
amount as specifed in a developer's agreement to reimburse the costs of land acquisition, public
improvements, demolition and relocation, site preparation, and administration. Remaining increment funds
will be used for EDA or City administration (up to 10 percent) and the costs of public improvement activities
outside the District.
Mounds View Economic Development Authority Tax Increment Financing Plan for Tar, Increment Financing District No. 5 2-16
• Subsection 2-21. Excess Increments
Excess increments, as defined in M.S, Section 469.176, Subd. Z, 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 EDA or City must spend or return the excess increments under paragraph (c) within nine months after
the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to
modify the TIF Plan in order to fmance additional public costs in the Mounds View Economic Development
Project or the District.
Subsection 2-22. Requirements for Agreements with the Developer
The EDA or City will review any proposal for private development to determine its conformance with the
Project Plan 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 EDA or. City to demonstrate the conformance of the
development with City plans and ordinances. The EDA or 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 10 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 EDA or 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 10 percent ofthe acreage, the EDA
or City concluded an agreement for the development of the property acquired and which provides recourse
for the EDA or City should the development not be completed.
Subsection 2-23. Assessment Agreements
Pursuant to M.S., Section 469.177, Subd. 8, the EDA or 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.
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tar. Increment Financing District No. 5 2-17
• Subsection 2-25. Annual Disclosure Requirements
Pursuant to M. S., Section 469.175, Subd. S, 6, and 6b the EDA or City must undertake financial reporting for
all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and
School Boazd on or before August 1 of each year. M. S., Section 469.175, Subd. S 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. S and Subd. 6, the OSA 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 EDA and City staff awareness of the feasibility of developing the project site. A compazative
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 cost of redevelopment of the Mounds
View Economic Development Project pursuant to the M.S., Sections 469.090 to 469.1082. 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. Increments may
only be spent on one or more ofthe following costs, improvements, or activities: acquisition and removal
of existing billboards; acquisition of land and easements, if the pazcel is occupied by a building
constructed before 1990; sanitary sewer, sewer, and water improvements; road improvements; parking,
including structured parking; administrative expenses; wetland mitigation; soils correction; and
environmental cleanup. Increments may be expended on costs, improvements, or activities outside the
area defined in subdivision 1, paragraph (b) of the Special Legislation, wherever located, whether or not
included in a tax increment financing district, for sanitary sewer, sewer, and water improvements and
improvements to Coral Sea Street, Airport Road, 82nd Lane NE, County Road J, U.S. Highway 10, and
Interstate Highway 35W so long as the improvements are related to development within the area defined
in the Special Legislation, Subd. 1, paragraph (b).
2. Pooling Limitations. Pursuant to the Special Legislation, Subd. 2(d), the limitations on spending
increment outside of the district under M. S., Section 469.1763, Subd. 2, does not apply. Except as
• Mounds View Economic Development AutLority Tax Increment Financing Plan for Tar, Increment Financing District No. 5 2-] 8
. provided in paragraph (e) of the Special Legislation, increments may only be expended within the area
defined in the Special Legislation, Subd. 1, paragraph (b), and related to development occurring within
the area defined in the Special Legislation, Subd. 1, pm~agraph (b), whether or not included in a tax
increment financing district.
3. Five Year Limitation on Commitment ofTax Increments. Pursuant to the Special Legislation, Subd. 2(c),
the five year rule under M.S., Section 469.1763, Subd. 3, has been extended to a ten year period.
Subsection 2-28. Summary
The Mounds View EDA is establishing the District to preserve and enhance the tax base, 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 55113-1105, telephone (651) 697-8500.
•
• Mounds View Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 5 2-19
• APPENDIX A
PROJECT DESCRIPTION
Medtronic Campus
I-35W & State Hwy 10
Mounds View, Minnesota
Introduction
The Bridges of Mounds View Golf Course is a City-owned course encompassing approximately 72.2 acres.
In the fall of 2004 Medronic, Inc. began negotiations with the City to purchase the property for the purpose
of developing an office complex on the site. The site poses a number of challenges for redevelopment of a
business office complex of the quality required by Medtronic. The current site has acreage that is not
buildable and wetland relocation will be required. The site is configured such that additional adjacent
properties will need to be acquired, businesses relocated and building demolished to assemble a site that will
allow the proposed project to be constructed. Additionally, the site issues include the need for an access road,
lack of utilities and the removal of up to six billboards located on the site.
New Medtronic Corporate Campus
Medtronic, Inc. is the world's leading medical technology company, providing lifelong solutions for people
with chronic disease. Its products include those for cazdiac rhythm management, cardiac surgery, vascular,
neurological, spinal, diabetes, and for ENT surgery. The company has conducted a search throughout the
Twin Cities for a new corporate campus that would meet the growing reseazch and development needs of the
. Cazdiac Rhythm Management (CRM) division of this growing company.
In the Fall of 2004, Medtronic began focusing on the Mounds View site for locating its new CRM campus
because:
1. The area is large enough to allow Medtronic to expand and combine multiple facilities, including
several temporary locations, into a new cohesive, efficient and motivational campus environment for
employees. At a minimum the Company wants 60 buildable acres of land. The golf course location
has the potential to provide the necessary space.
2. The City of Mounds View is centrally located in the North Metro area which will accommodate
current Medtronic employees and will be a suitable site for attracting future employees. The
Company has done an analysis of its employee base and found the Mounds View location to be
efficient and ideally situated in relation to its employees.
3. The Mounds View site offers a highly visible location with several transportation options, including
access to I-35W and State Hwy 10. The proposed site provides over one mile of visibility on two
major thoroughfares. The appraisal undertaken by the City indicated that the highest and best use
of the land would be for a commercial office or mixed-use development.
4. The Bridges campus is geographically close to Medtronic's Rice Creek and Headquarters campuses
in the City of Fridley.
5. Medtronic already has its North American Distribution Facility in Mounds View located just off of
County Highway 10.
• APPENDIX A-i
• Proposed Project Description
- The Project Master Site Plan, after all Phases, envisions the potential fora 1.5 million square foot
campus in Mounds View that is designed for up to 6,000+ employees.
- The company envisions a 72 acre campus, surrounded by various walking/biking paths, ponds,
natural wetlands and trees.
- Phase I of the project includes the construction of a building complex totaling 820,000 sq. ft. of office
space. The Phase I complex would be designed for approximately 3,300 employees, with surface
parking for about 3,400 vehicles.
- Potential later phases ofthe project would likely include construction oftwo more buildings totaling
680,000 sq. ft of office space. The Phase II/III complex could be designed for about 2,700
employees.
- Later phases aze prof ected to be completed in 2012 and 2017 respectively and may involve structured
and surface parking for vehicles.
Transportation
- The Bridges AUAR, authorized by the City, reviewed all transportation issues related to the proposed
development of the site. RLK-Kuusisto of Minnetonka prepazed the AUAR documents.
- The Traffic Study, paid for by Medtronic, reviewed traffic forecasts and capacity analysis of the
roads to be used by Medtronic employees. The Study indicated that a significant portion of the
additional daily trips on the roads are being caused by adjacent development in Blaine and
Shoreview.
- The Medtronic corporate campus will be designed to maximize the flow of traffic into and out of the
facility and bordering freeways.
• - On April l 1, 2005 Gov. Pawlenty signed the State's Bonding bill that includes appropriations for road
improvements necessary for the Medtronic project. The budget included $20.5 million intended for
various improvements, including Airport Road, Co. Rd. J, Xylite St., Coral Sea St., Interstate 35 W
and Naples St. It will improve the current traffic situation and as well as accommodate additional
capacity.
- Because of the Medtronic project, County Road J & I-35W Bridge would be reconstructed by 2008.
These infrastructure improvements are occurring 20+ years ahead of when they otherwise would be
scheduled.
(As Modified February 13, 200
Due to various market conditions, Medtronic, Ina has decided to proceed with Phase II of the
anticipated project. Phase II consists of the construction of an additional 380,000 sq. ft. of office space.
The total project, therefore, will consist of 1,200,000 sq. ft. of office space. In addition, the surface
parking plan is being replaced with a 4,200 vehicle parking ramp. The Phase II complex would be
designed for approximately 1,400 employees bringing the potential employees in the Mounds View
campus to 4,320,
• APPENDIX A-2
•
APPENDIX B
MAP OF THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT
AND. TAX INCREMENT FINANCING DISTRICT NO. 5
•
• APPENDIX B-i
Mounds View TIF D
.tifti
L
EGt
istricts
^ti ti,,.,ti CfTY 4F
• tij : ti
•S•4
~`~ auNDs
r.
r',••` .t
.A
IEw
~°~ietS ~ Parc~t~,'~QS
•
TIF District Totals: % of City
District #1 111.15 acres 4.22
District #2 12.95 acres 0.49
_
District #3 81.86 acres 3.11
District #5 72.20 acres 2.74
Totals: 278.09 acres 10.56
NOTE: The Mounds View F~onomic Development Project Boundaries are
Coterminous with the Corporate Boundaries of the City of Mounds View.
Mfap Revised January 23, ZW6
FIe Name:
• 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
parcels listed below.
Parcel Numbers Address Owner
OS-30-23-13-0001 Jackson Dr City of Mounds View
OS-30-23-21-0005* Coral Sea Street City of Mounds View
OS-30-23-21-4006* Unassigned City of Mounds View
OS-30-23-24-0059 Jackson Dr City of Mounds View
OS-30-23-24-0060 Edgewood Dr City of Mounds View
*These parcels are being removed from Tax Increment Financing District No. 3 to be
included in Tax Increment Financing District No. 5.
Pursuant to H.FNo. 2498, 4`'' Engrossment - 84`h Legislative Session (2005-2006), Article 2, Tax
• Increment Financing, Section 25, Subd. 1, paragraph (b), the "area" is bounded by, and including, on the
north County Road J west of Coral Sea Street and 82nd Lane NE east of Coral Sea Street, on the east
Coral Sea Street north of 82nd Lane NE and Interstate Highway 35W south of 82nd Lane NE, on the
south and southwest U.S. Highway 10, and on the west the western boundary of Outlot A, Sysco,
according to the recorded plat thereof, and situated in Ramsey County, Minnesota.
(As Mod>fied February 13, 2006)
The boundaries of the District are not being changed by this modification.
• APPENDIX C-1
•
APPENDIX D
ESTIMATED CASH FLOW FOR THE DISTRICT
Fiscal Disparities Inside the District ("B" election) 3% Inflation - 5% P.V.
T.LF CASH FLOW A°Sit~APTtONS ; .
DisMct New Redevelopment District
County District #
Inflation Rate -Every Year. 3.OD°h
Pay-As-You-Go Interest Rate: 5.00°~
Note Issued Date (Present Value Date): Ot-Aug-07
Local Tax Rate -Frozen 122.627% Pay 2006 TNT
Fispl Disparities Election (B inside) B
Year District was ceri~ed Pay 2006
Assumes First Tax Increment For District 2008
Years of Tax Increment 26
Assumes Last Year of Tax Increment 2033
Fiscal Disparities Ratio 39.6705% Pay 2006 TNT estimated (adjusted for new construction)
Fiscal Disparities Metro Wide Tax Rate 121.802% Pay 2006
Local Tax Rate -Current 122.827% Pay 2006 TNT
Commercial Industrial Class Rate 1.5°k-2.0% Pay 2006
First 1.50%
Over 2.00%
•
.
Class Rate After
ToffiI Class Original After Conversion Date
PID Address Market Vatus Rate Tax Capacity Conversion Tax Capacity Payable
DS-3423-13-0001 Jackson Dr 3,755,700 1.5°/d2.00% Tax Exempt O.DO% 74,364 2006
OS3423-21-0005 Coral Sea Street 2,976,900 2.00°k Tax Exempt 2.00% 59,538 2006
DS-3423-21-0006 Unassigned 1,037,600 2.oD% Tax Exempt 2.D0°~ 20,752 2006
OS-3423-24-0059 Jackson Dr 982,700 2.OD°h Tax Exempt 2.00°~ 19,654 2006
05-3423-240060 Edgewood Dr 385,500 2.OD% Tax Exempt 2.00% 7,710 2006
Totals 9,138,400 0 182,018
Note:
1. Sq. Ft values are based upon developers estimates
2. Project estimated to be 60yo completed year 1 and completed year 2 based upon developer's estimates
f - .. PROJECT INFO)2~AATION _
P
Toffit Market Value Market Class New Year Date
Phase Use Sq. FtJUnits Sq. FtJUnlts Value Rate Tax Capacity Constructed Payable
1 office o fio.oo 0 1.s°~-2.0°~ o zoos zoo?
1 ofr~e 7zo,ooo fio.oo s7,6DO,ooo 1.s°~2.oi° 1,151,zso zoos zoos
1 Office 480,000 80.00 38,400,000 2.00% 768,000 2007 2009
TOTAL 1,200,000 96,000,000 1,419,250
• APPENDIX D-1
•
•
APPENDIX D
ESTIMATED CASH FLOW FOR THE DISTRICT
~ TAX INGREl~JIEN'f CASH FLOW _ b - `.
Ba ProJect Fiscal Captured I-Annual
Sem State Admin. Semi-Annual Semi-Annual PAYMENT DATE
Tax Tax Disparities lax Gross Tax Auditor at Net Tax Present PERIOD ENDING
Ca aci Ca aci Reduction Ca aci Increment 0.36%. 5.00%. Increment Value Mth. Yr.
D .0 0 OB-01 2006
0 0 0 02-01 2007
162,01 B 182,018 D Present Value Date - 8-01-07 OB-01 2007
182,016 182,016 0 D 0 0 D 0 0 02-Ot 2008
182,Di8 1,151,250 384,499 584,733 359,105 (1,293)" (17,891) 339,922 323,542 08-01 2006
182,018 1,151,250 364,499 584,733 359,105 (1,293) (17,891) 339,922 639,193 D2-01 2009
162,018 1,919,250 689,169 1,048,063 643,652 (2,317) (32,067) 609,266 1,191,160 OB-01 2009
182,018 1,919,250 689,169 1,048,063 643,652 (2,317) (32,067) 609,268 1,729,665 D2-01 2010
182,018 1,976,628 712,010 1,082,800 664,985 (2,394) (33,130) 629,462 2,272,447 OB-01 2010
182,018 1,976,828 712,010 1,082,800 664,985 (2,394) (33,130) 629,462 2,801,992 02-01 2011
182,018 2,036,132 735,536 1,118,578 686,958 (2,473) (34,224) 650,261 3,335,691 OB-01 2011
182,018 2,036,132 735,536 1,118,578 686,958 (2,473) (34,224) 650,261 3,856,373 02-01 2012
182,018 2,D97,21fi 759,769 1,155,429 709,590 (2,555) (35,352) 671,683 4,381,091 OB-01 2012
182,018 2,097,216 759,769 1,155,429 709,590 (2,555) (35,352) 671,683 4,893,011 02-07 2013
182,018 2,160,133 784,728 1,193,367 732,901 (2,636) (36,513) 693,749 5,408,852 OB-01 2013
182,016 2,160,133 784,728 1,193,387 732,901 (2,638) (36,513) 693,749 5,912,112 D2-01 2014
182,018 2,224,937 810,436 1,232,483 756,911 (2,725) (37,709) 716,477 6,419,182 OB-01 2014
182,018 2,224,937 810,436 1,232,463 756,911 (2,725) (37,709) 716,477 .6,913,884 02-01 2015
182,018 2,291,685 836,915 1,272,752 781,641 (2,814) (38,941) 739,866 7,412,290 08-01 2015
182,018 2,291,665 836,915 1,272,752 781,641 (2,814) (36,941) 739,886 7,898,540 02-01 2016
162,018 2,360,435 864,169 1,314,228 607,114 (2,906) (40,210) 763,998 6,388,389 OB-01 2016.
182,018 2,360,435 664,169 1,314,228 807,114 (2,906) (40,210) 7fi3,998 8,866,291 02-01 2017
162,018 2,431,248 892,281 1,356,949 833,350 (3,000) (41,518) 786,833 9,347,692 OB-01 2017
182,018 2,431,248 892,281 1,356,949 833,350 (3,000) (41,518) 768,833 9,817,352 02-01 2016
182,016 2,504,186 921,216 1,400,952 860,374 (3,097) (42,664) 814,412 10,290,416 08-01 2018
182,018 2,504,186 921,216 1,400,952 660,374 (3,097) (42,864) 814,412 10,751,941 02-01 2019
182,016 2,579,312 951,018 1,446,276 868,208 (3,198) (44,251) 840,760 11,216,777 OB-01 2019
182,018 2,579,312 951,018 1,446,276 888,208 (3,196) (44,251) 840,760 11,670,275 02-01 2020
182,018 2,656,691 981,715 1,492,958 916,878 (3,301) (45,679) 867,898 12,126,993 OB-01 2020
182,018 2,656,691 961,715 1,492,958 916,878 (3,3Di) (45,679) 867,896 12,572,572 02-01 2021
182.018 2,736,392 1,013,333 1,541,041 946,407 (3,407) (47,150) 895,850 13,021,283 OS-01 2021
182,018 2,736,392 1,013,333 1,541,041 946,407 (3,407) (47,150) 895,850 13,459,050 02-01 2022
182,018 2,818,483 1,045,899 1,590,566 976,822 (3,517) (48,665) 924,641 13,899,866 08-01 2022
162,018 2,818,483 1,045,899 1,590,566 976,822 (3,517) {48,665) 924,641 14,329,930 02-01 2023
182,076 2,903,038 1,079,442 1,641,578 1,008,150 (3,629) (50,226) 954,295 14,762,961 OB-01 2023
182,018 2,903,038 1,079,442 1,641,578 1,006,150 (3,629) (50,226) 954,295 15,185,430 02-01 2024
182,018 2,990,129 1,113,992 1,694,119 1,040,418 (3,746) (51,834) 964,839 15,610,787 OS-01 2024
182,018 2,990,129 1,113,992 1,694,119 7,040,418 (3,746) (51,834) 984,839 16,025,769 02-01 2025
182,018 3,079,833 1,149,578 1,748,237 1,073,653 (3,665) (53,489) 1,016,299 16,443,564 OB-D1 2025
182,018 3,079,833 1,149,576 1,748,237 1,073,653 (3,865) (53,489) 1,016,299 16,851,168 02-01 2026
182,016 3,172,228 1,186,231 1,803,979 1,107,687 (3,988) (55,195) 1,048,703 17,261,509 OB-01 2026
182,016 3,172,228 1,166,231 1,803,979 1,107,687 (3,988) (55,195) 1,048,703 17,661,843 02-01 2027
182,018 3,267,395 1,223,984 1,861,393 1,143,146 (4,115) (56,952) 1,062,079 18,064,842 DS-01 2027
182,018 3,267,395 1,223,964 1,661,393 1,143,146 (4,115) (56,952) 1,082,079 18,458,013 02-01 2028
162,018 3,365,416 1,262,670 1,920,528 1,179,464 (4,246) (58,761) 1,116,457 18,853,780 08-01 2028
162,018 3,365,416 1,262,870 1,920,528 1,179,464 (4,246) (58,761) 1,116,457 19,239,894 02-01 2029
182,016 3,466,379 1,302,922 1,981,439 1,216,871 (4,381) (60,625) 1,151,866 19,626,538 08-01 2029
182,016 3,466,379 1,302,922 1,981,439 1,216,871 (4,381) (60,625) 1,151,866 20,007,702 02-01 2030
182,018 3,570,370 1,344,176 2,044,176 1,255,400 (4,519) (62,544) 1,188,337 20,389,332 OB-01 2030
182,018 3,570,370 1,344,176 2,044,176 1,255,400 (4,519) (62,544) 1,186,337 20,761,653 02-01 2031
182,018 3,677,481 1,366,668 2,108,795 1,295,085 (4,662) (64,521) 1,225,902 21,136,376 08-01 2031
162,016 3,677,481 1,366,668 2,108,795 1,295,085 (4,662) (64,521) 1,225,902 21,501,959 02-01 2032
162,Di6 3,787,806 1,430,434 2,175,354 1,335,961 (4,809) (66,558) 1,264,594 21,869,883 OS-01 2032
782,018 3,787,806 1,430,434 2,175,354 1,335,961 (4,809) (66,558) 1,264,594 22,228,833 02-01 2033
182,018 3,901,440 1,475,513 2,243,909 1,378,063 (4,961) (68,655) 1,304,447 22,590,064 06-01 2033
182,018 3,901,440 1,475,513 2,243,909 7,378,063 (4,961) 66,655 1,304,447 22,942,485 02-01 2034
Totals 49,197,989 (i7T,113 (2,451,044 46,569,632
Present Value Date - 8-01-07 24,237,238 (87,254 (1,207,499) 22,842,485
• APPENDIX D-2
•
•
APPENDIX E
MINNESOTA BUSINESS ASSISTANCE FORM
(MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT)
APPENDIX E-i
C7
r~
n ~1 ~ ~,, Oepanmeri! m Ea~pTOyme~rc;
tJjy j~'jj~jf'/~s~ F~[oiw\~tTaJx~OjeveloJpm/~e`M~:
~.. ~.. 'il Yl is.//V ~i/i
Please SII in date agreement signed (same as question 21)
Minnesota Business Assistance Form
^ The Minnesota Business Assistance Form (MBAF) is used to report each business subsidy (including Job Opportunity Zone (JOBZ) tax
exemptions/credit) and financial assistance agreement signed from AuRrtst 1 1999 through December 31.2004 unless goals have been
achieved and reported on a MBAF per Minn. Stat. § 1167.993 to § 1167.995.
^ Businesses receiving JOBZone Benefits must report through 2015 even if goals have been achieved.
^ The follov~ing government agencies must submit a MBAF: 1) any local government agency that signed a business subsidy ageement
since January 1, 1999, or represents a population of more than 2,500; 2} all state government agencies authorized to provide business
subsidies.
^ DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance
may not be awazded after Lune 1 of each year until a report has been submitted.
^ Questions? Call (651) 296-0580. Information on where to mail or fax your completed MBAF(s) is on page 5. An online version of
this form is available at www.deedstate.mn.us/Community/subsidies/MBAFForm.htm
Cnrfinn 1 • ((_rnntnr Tnfnrmatinnl
1. Name of grantor (funding entity) 2. Name of person completing this form
3. Street address 4. City 5. Zip Code
6. County 7. Phone number 8. Fax number 9. E-mail address
10. Please indicate who in your organization should receive the MBAF if different from the person in Question 2.
NamelTitle Phone number Street address City Zip Code
11. Classification of gantor (Mark one. If grantor is entity created 12. Has your organization held a public hearing on and adopted
by govt agency, please indicate affiliation. For example, a city criteria for awarding business subsidies in compliance with
EDA would check "City government. ') Minn. Stat. § 1167.994? (Mark one.)
^ City government ^ Yes, in 2005 (attach criteria)
^ Yes, in 2005 but have not yet adopted criteria
^ County government ^ Yes, prior to 2005
^ Regional government If Yes:
Hearing Date: Year Criteria Submitted:
^ State government
^ No
^ Other (Please specify) ^ Other (Please attach lanation.
13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through
December 31, 2004 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.)
^ Yes (Complete the remainder of the form unless goals have been achieved and ^ No(Stop here. go to section 5 on page 4.)
re rted in a reviousl :led MBAF er Minn. Stat. ,¢1167.993 and 1167.994.
14. Name of business or organization
receiving subsidy or fmanciai assistance
I5. Address where business subsidy or fmancial assistance
will be used
Street address City State ZIP Code
16. Does the recipient have a parent corporation? (Mark one.)
^ Yes (Indicate name and address ofparent corporation below. If more than one, indicate ultimate owner.)
^ No
State ZIP Code
Name of
Minnesota Business Assistance Form (02/Ol/OS) Page 1 of 5 Dept. of Employment and Economic Development
•
•
•
17. Industry of recipient's facility (Mark one.):
^ Manufacturing ^ Services ^ Finance, Insurance, Real Estate
^ Retail Trade ^ Wholesale Trade ^ Construction ^ Other leases eci
18. Did the recipient relocate as a result of signing this agreement? (Mark one.)
^ Yes (Indicate city and state of previous address and reason recipient did not complete this project at that address.)
City/State of previous address
Reason project not completed at previous address
^ No (Go to Ouestion 19 )
19. What would recipient have done without business subsidy or financial assistance? (Mark one):
^ Remain at previous location, but not expand ^ Remain at previous location but expand
^ Relocate to different Minnesota location ^ Relocated outside Minnesota
^ Other
S ti n 3' A reement Information
ec o
20. Total dollar value of business subsidy or financial assistance
21. Date agreement signed (In addition to the agreement date,
(Please separate value by type in Questions 24 and 25.) indicate any dates the agreement was amended.)
(Enter zero for JOBZ, Biozone and Agzone projects.)
22. Benefit date (Indicate the date the recipient receives the business subsidy or improvements were finished, equipment was placed into
service, or the recipient occupied the property, whichever is earlier.)
23. Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question 25) required
to be reported? (Mark one.)
^ business subsid ^ financial assistance
24. If the agreement provided a business subsidy, please indicate the 25. If the assistance was one of the four types of financial assistance,
type(s) and total dollar value for each type. please indicate the type(s).
^ not applicable, agreement provided financial assistance ^ not applicable, agreement provided a business subsidy
^ loan (only principal) $ ^ assistance for property
^ grant (i.e., forgivable loan) $ by contaminants $
^ tax abatement $ ^ assistance for renovating building
^ Tff or other tax reduction or deferral $ stock or bringing it up to code, and
D guarantee or payment $ assistance provided for designated
^ contribution of property or infrastructure $ historic preservation districts, when
^ preferential use of governmental facilities $ 50 percent or less of total cost $
^ land contribution $ ^ assistance for pollution control or
^ Biozone $ 0 abatement $
^ JOBZ (state tax exemptions/credits and sales tax) $ 0 ^ assistance for a TTF soils
^ JOBZ - Agzone $ 0 condition district $
^ other (Sped subsidy type.) $
(Note: no dollar value for zone ro'ects
26. If the assistance included tax increment financing, please indicate 27. Are any other grantors providing a business subsidy or financial
the type of TIF district? (Mark one.) assistance to the same project? (Mark one.)
^ not applicable, assistance was not in the form of TIF ^ Yes (Specify each grantor and flue value of their assistance below;
attach an additional sheet if necessary.
^ redevelopment
^ renewal and renovation
^ soils condition Grantor Value ($)
^ economic deve]opment
^ mined underground space
^ hazardous substance subdistrict
Grantor Value ($)
^ No
Minnesota Business Assistance Foam (02/01/05) Page 2 of 5
Dept. of Employment and Economic Development
•
~ecnop ~~: wc, lnrormanon
Complete Questions 28-31 if the financial assistance was awarded to a JOBZ qualified business recipient receiving JOBZ benefits. (If not,
go directly to Question 32.)
JZ1. What was the amount of private capital investment of the business in the JOBZ zone prior to December 31, 2004?
Real (land and buildings) $
Personal (equipment) $
JZ2. What was the property tax assessment which was not collected for the property where the JOBZ qualified business was operating
during the period of January 1, 2004 and December 31, 2004? (Please sped each additional parcel idezzt~cation number and the
value of the property tax assessment that was not collected during the period ofTanuary 1, 2004 and December 31, 2004; attach an
additional sheet if necessary -obtain information from county tax assessor's office.)
$ for Parcel Identification Number:
JZ3. What was the value of Wind Energy Production Tax, if any, for the JOBZ quaIiEed business that was operating during the period of
January 1, 2004 and December 31, 2004?
lr~
u
Section 4: Goals and Public Purpose Identified in the Agreement
28. Minn. Stat. § 1167.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following
public purposes were stated in the agreement? (Mark all that apply. )
^ Enhancing economic diversity ^ Increasing tax base (cannot be only purpose)
^ Creating high-quality job growth
^ Job retention ^ Other (please sped)
^ Stabilizing the community
29. Indicate whether the ageement included the following types of goals, and whether the recipient had attained those goals at the time of
this report (Fill in the boxes and attainment date(s) for each goal.)
Goals Target attainment All goals
established? dates (month & year) attained?
A) Specific wage and job goals to be attained within 2 years ^ Yes ^ No ^ Yes ^ No
B) Other job-creation and/or retention goals ^ Yes ^ No ^ Yes ^ No
C) Other wage goals ^ Yes ^ No ^ Yes ^ No
D) Goals other than wage and job goals ^ Yes ^ No ^ Yes ^ No
(Please attach descri lion o oafs and ro ess toward attainment (i not documented in Questions 30 and 31.
30. For each of the following wage categories, indicate the job creation and/or retention goals stated in the agreement and the average
hourly value of any employer-provided health insurance goals for those jobs. (Only indicate job creation goals in full-time
equivalents if you are unable to separate goals by full- and part-time positions.)
Full-tune Part-time) FTE on if unable to
Hourly Wage Job SeasonaYTemp. stated as FT/PT) Hourly Value of
(excluding benefits) Creation Job Creation Job Creation Job Retention Heahb Insurance
no hourly wage-level goal $
less than $7.00 $
$7.00 to $8.99 $
$9.00 to $10.99 $
$ 11.00 to $12.99 $
$13.00 to $14.99 $
$15.00 and higher $
Minnesota Business Assistance Form (02/01/05) Page 3 of 5 Dept of Employment and Economic Development
C,
31. For each of the following wage categories, indicate the number of actual jobs created and/or retained since the benefit date and the actual
hourly value of any employer-provided health insurance for those jobs. (Only indicate job creation in full-rime equivalents if you are
unable to separate job creation into full- and part-time positions.)
Full-time Part-time! FTE onl if unable to
Hourly Wage Job Seasonal/I'emp. stated as FT/PT) Hourly Valve of
(excluding benefits) Creation Job Creation Job Creation .Job Retention Health Insurance
less than $7.00 $
$7.00 to $8.99 $
$9.00 to $10.99 $
$11.00 to $12.99 $
$13.00 to $14.99 $
$15.00 and higher $
32. Has the recipient achieved all goals (see Question 33, 34 and 35) and fulfilled all obligations stipulated in the agreement (Mark one.)
^ Yes ^ No
Section 5: Recipients Failin¢ to Fulfill Obligations
(Do not complete this section if you completed it on another MBAF submitted to U~EU. )
33. During the period January 1, 2004 through December 31, 2004, dtd your orgamzatton have any rectpients who failed to report as
by Minn. Stat § 1167.993 and § 1167.994? (Mark one. )
^ Yes (Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that
j recipient. Attach additional pages if necessary.)
Name of recipient
Type of subsidy or assistance (See Ouestions 24 & 23.) Value of subsidy or assistance
^ No
Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on
or after January 1, 2004, that were required to be fulfilled by the time of this report? (Mark one. }
^ Yes (Complete the remainder of this section.) ^ No (Stop here and submit form to DEED.)
•
For questions 35-39: Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were
to be attained by the time of reporting. (Attach additional
35. Information on recipient and agreement:
Name of recipient in default Type of subsidy or assistance Initial value of subsidy or assistance
Street address of recipient City/Zip code of recipient Outstanding value of subsidy
or assistance
36. Reason(s) for default (Mark all that apply. ):
^ recipient ceased operation ^ recipient relocated to a different community
^ recipient was unable to fill vacant positions ^ other (Sped reason.)
Minnesota Business Assistance Form (02/01/05) Page 4 of 5 Dept of Employment and Economic Development
37. To date, has the recipient fulfilled its repayment obligation? (Mark one.)
D Yes ^ No, recipient has beQUrt to repay the assistance. ^ No, recipient has not besun to repay the assistance.
38. Has the agreement been amended to extend the recipient's deadline for fulflling its obligations? (Mark one.)
^ Yes ^ No
39. Describe the steps being taken to bring recipient into compliance or recoup the subsidy:
Return your completed MBAF(s) byApril I, 2005
EITHER
Mail To:
Minnesota. Business Assistance Report
Minnesota Department of Employment and Economic Development -Analysis and Evaluation
15i National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 55101-1351
OR
Faz To:
(651) 215-3841
(Next year, please use the online version of this form. It can be found at
vvww.deed.state.mn.us/Community/subsidies/MBAFForm.htm.)
• Minnesota Business Assistance Form (02/01/05) Page 5 of 5 Dept of Employment and Economic Development
• APPENDIX F
BUT/FOR QUALIFICATIONS
ut- or ~ na ysis
Current Market Value 0
New Market Value 65,600,000
Difference 65,600,000
Presenf Vatue of Tax Increment 15,708,780
Difference 49,891,22D
Value Likel to Occur Without TIF is Less Than: 49,891,220
The proposed development, in the opinion of the City Council, 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 taz 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 Tax Increment
Financing District No. S permitted by the TIF Plan.
Several issues are impediments to private development of the site including lack of access, existing wetlands
and inadequate roadway infrastructure. The transportation improvements that have to be constructed alone
• for this development (or any other type of development constructed here) total over $20 million. But for
Medtronic being viewed as a major asset to Minnesota's biotech initiatives and large employer within the
State, the additional roadway funding that was approved for this project would never have been available to
this site, thus not making any other type of development (housing or commercial) financially feasible. In
addition, site constraints require the developer to acquire adjacent land to preserve existing wetlands and
green space which adds additional costs. Based upon analysis of the developer's proforma the City has
determined that a gap needs to be filled through tax increment in order to make the proposed development
financially feasible. The City therefore does not believe the proposed corporate office facility is likely to
occur without the assistance described in this TIF Plan.
The increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be Zess than the increase in market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum duration
of the TIF District permitted by the TIF Plan:
While the property could be sold to another developer for some other use, these scenarios are not feasible in
the market due to various constraints mentioned above along with others. First, industrial uses could not meet
the market valuation due to the fact that they aze single story in nature (can't get to the same density as office),
lack the amenities in design and construction and are traditionally valued at''/z the market value of commercial
and office uses. Second, commercial retail uses have the same restraint in that the market does not allow for
vertical commercial/retail development Although retail can on occasion have a higher per sq/ft value, the
lack ofthe ability to develop vertically limits the overall value developed on the site. Third, the office market
is still soft in the metropolitan area and the abiliTy to develop this entire site for office use is unlikely as it is
unlikely that the office sites developed would be of similar square footage. Fourth the site could be
developed for housing or mixed use, but the site would need to be built at nearly 100 percent high density
• APPENDIX F-1
• in order to create the same value, which is unlikely from a City policy perspective.
Ehlers & Associates completed an analysis of the development proforma based upon this information and
research and the proposed development costs provided by the developer. It was determined that a gap existed
to make the project fmancially not feasible for the developer. Even if the developer received the land for free,
there would still be a gap in the traditional sense. Given that the City had an appraisal completed that showed
a value of neazly $10 million for the land, it is unlikely that the land cost will be lowered in the near future
for this proposed development or another type of development.
It should be noted that any alternative redevelopment scenario faces the same high land, utility and roadway
infrastructure costs faced by the proposed developer, and in the City's experience such properties have not
been redeveloped in Mounds View without significant public assistance.
Therefore, the City concludes as follows:
a. The City's estimate of the amount by which the market value of the entire District will
increase without the use of tax increment fmancing is $0.
b. If the proposed development occurs, the total increase in mazket value will be $65,600,000
(see table on previous page).
c. The present value of tax increments from the District for the maximum duration of the
district permitted by the TIF Plan is estimated to be $15,708,780. (see table on previous
Pie)
• d. Even if some development other than the proposed development were to occur, the Council
fmds that no alternative would occur that would produce a market value increase greater than
$49,891,220 (the amount in clause b less the amount in clause c) without tax increment
assistance.
Finding that the TIFPlan for the District conforms to the general plan for the development or redevelopment
of the municipality as a whole.
The Council finds that the TIF Plan conforms to the general development plan of the City as a whole based
upon the following:
The conclusion and recommendation of City staff is that the TIF Plan is consistent with the City's
comprehensive plan based upon the following information and City actions. The development
contemplated for the District consists of an approximately 820,000 square foot office campus for
Medtronic. On January 10, 2005, both the City and EDA authorized work associated with the
preparation of a comprehensive plan amendment for the development site in the District. On
February 2, 2005, the Planning Commission for the City approved a recommendation to the City
Council as to the approval of a comprehensive plan amendment revising the land use designation for
the development site in the District from Outdoor Sport Recreation (SRO) and Passive Open Space
(OSP) to Office (OFC). On May 9, 2005, the City Council established the date ofMay 23, 2005 for
a public hearing to consider approval ofthe comprehensive land use amendment for the development
site in the District (the public hearing was held on May 23, 2005, but adoption of the amendment was
deferred to a later date). On July i 1, 2005, the City Council approved the amendment to the City's
comprehensive plan amending the designated land use for the development site in the District from
SRO and OSP to OFC. In conjunction with the comprehensive plan amendment referenced herein,
• APPENDIX F-2
• the City also worked on and approved the final draft ofthe Bridges Office Development Alternative
Urban Areawide Review (AUAR) document on July 11, 2005, of which the comprehensive plan
amendment discussed hereinwas a required component. On July 20, 2005, the Planning Commission
confirmed that the proposed sale of the development site in the District to Medtronic was consistent
with the City's comprehensive plan. On August 3, 2005, the Planning Commission did not approve
a resolution fording that the TIF Plan for the District conformed to the general plan for the
development and redevelopment of the City as a whole. However, consistent with the previous
actions of both the Planning Commission and City Council as to the comprehensive plan amendment
referenced herein, the adoption of the AUAR referenced herein, and the conclusions and
recommendations of City staff, the Council finds that the TIF Plan and the office development
contemplated therein conforms to the general development plan for the City as a whole as the
designated land use for the development site within the District is now properly that of Office (OFC),
which is consistent with the office complex development proposed to be constructed by Medtronic
at the development site within the District.
Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs
of the Ciry as a whole, for the development of the Mounds View Economic Development Project by private
enterprise.
The project to be assisted by the District will result in increased employment in the City and the State of
Minnesota, increased tax base of the State, and add a high quality development to the City.
(As Modified February 13, 2006)
•
Current Market Value
New Market Value
Difference
Present Value of Tax Increment
Difference
Value Likely to Occur Without TIF is Less Than:
Modified to include Phases I aad II.
Therefore, the City concludes as follows:
9,138,400
96,000,000
86,861,600
24,237,238
62,624,362
a_ The City's estimate of the amount by which the market value of the entire District will increase
without the use of tax increment fmancing is $0.
b. If the proposed development occurs, the total increase in market value will be $96,000,000 (see
table on previous page).
• APPENDIX F-3
c. The present value of tax increments from the District for the maximum duration of the district
permitted by the TIF Plan is estimated to be $24,237,238. (see table on previous page)
d. Even if some development other than the proposed development were to occur, the Council finds
that no alternative would occur that would produce a market value increase greater than
$62,624,362 (the amount in clause b less the amount in clause c) without tax increment
assistance.
Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of
the municipality as a whole.
The Council finds that the TIF Plan conforms to the general development plan of the City as a whole based upon
the following:
The conclusion and recommendation of City staff is that the TIF Plan is consistent with the City's
comprehensive plan based upon the following information and City actions. The development
contemplated for the District consists of an approximately 1,200,000 square foot office campus for
Medtronic. On January 10, 2005, both the City and EDA authorized work associated with the
preparation of a comprehensive plan amendment for the development site in the District. On February
2, 2005, the Planning Commission for the City approved a recommendation to the City Council as to the
approval of a comprehensive plan amendment revising the land use designation for the development site
in the District from Outdoor Sport Recreation (SRO) and Passive Open Space (OSP) to Office (OFC).
On May 9, 2005, the City Council established the date of May 23, 2005 for a public hearing to consider
approval of the comprehensive land use amendment for the development site in the District (the public
hearing was held on May 23, 2005, but adoption of the amendment was deferred to a later date). On July
11, 2005, the City Council approved the amendment to the City's comprehensive plan amending the
designated land use for the development site in the District from SRO and OSP to OFC. In conjunction
with the comprehensive plan amendment referenced herein, the City also worked on and approved the
final draft of the Bridges Office Development Alterriative Urban Areawide Review (AUAR) document
on July I1, 2005, of which the comprehensive plan amendment discussed herein was a required
component. On July 20, 2005, the Planning Commission confirmed that the proposed sale of the
development site in the District to Medtronic was consistent with the City's comprehensive plan. On
August 3, 2005, the Planning Commission did not approve a resolution finding that the TIF Plan for the
District conformed to the general plan for the development and redevelopment of the City as a whole.
However, consistent with the previous actions of both the Planning Commission and City Council as to
the comprehensive plan amendment referenced herein, the adoption ofthe AUAR referenced herein, and
the conclusions and recommendations of City staff, the Council finds that the TIF Plan and the office
development contemplated therein conforms to the general development plan for the City as a whole as
the designated land use for the development site within the District is now properly that of Office (OFC),
which is consistent with the office complex development proposed to be constructed by Medtronic at the
development site within the District.
• APPENDIX F-4
~~
APPENDIX G
SPECIAL LEGISLATION
H.F. No. 2498, 4th Engrossment - 84th Legislative Session (2005-2006) Posted on May 25, 2005
ARTICLE 2
TAX INCREMENT FINANCING
62.1 Sec. 26. [CITY OF MOUNDS VIEW; TAX INCREMENT FINANCING
62.2 DISTRICT.]
62.3 Subdivision 1. [ESTABLISHMENT.] (a) The city of Mounds
62.4 View may establish within the corporate boundaries of the city
62.5 one or more economic development tax increment financing
62.6 districts subject to the special rules under subdivision 2. The
62.7 districts must be located on property that is exempt from
62.8 taxation for property taxes payable in 2005 and within the area
62.9 defined in paragraph (b).
62.10 (b) For purposes of this section, "area" is bounded by, and
62.11 including, on the north County Road J west of Coral Sea Street
62.12 and 82nd Lane NE east of Coral Sea Street, on the east Coral Sea
62.13 Street north of 82nd Lane NE and Interstate Highway 35W south of
62.14 82nd Lane NE, on the south and southwest U.S. Highway 10, and on
62.15 the west the western boundary of Outlot A, Sysco, according to
62.16 the recorded plat thereon and situated in Ramsey County,
62.17 Minnesota,
62.18 Subd. 2. [SPECIAL RULES.] (a) If the city elects upon the
62.19 adoption of the tax increment financing plan for the district,
62.20 the rules under this section apply to the district
62.21 (b) The duration limit under Minnesota Statutes, section
62.22 469.176, subdivision lb, clause (3), is extended to 25 years
62.23 after receipt of the first increment.
62.24 (c) The five-year rule under Minnesota Statutes, section
62.25 469.1763, subdivision 3, is extended to a ten-year period.
62.26 (d) The limitations on spending increment outside of the
62.27 district under Minnesota Statutes, section 469.1763, subdivision
62.28 , 2, and on spending increment for developments more than 15
62.29 percent of the square footage of which is used for purposes
62.30 other than those listed in Minnesota Statutes, section 469.176,
62.31 subdivision 4c, do not apply. Except as provided in paragraph
62.32 (e), increments may only be expended within the area defined in
62.33 subdivision 1, paragraph (b), and related to development
62.34 occurring within the area defined in subdivision I, paragraph
62.35 (b), whether or not included in a tax increment financing
62.36 district Increments may only be spent on one or more of the
63.1 following costs, improvements, or activities:
632 (1) acquisition and removal of existing billboards;
63.3 (2) acquisition of land and easements, if the parcel is
63.4 occupied by a building constructed before 1990;
63.5 (3) sanitary sewer, sewer, and water improvements;
63.6 (4) road improvements;
• APPENDIX G 1
63.7 (5) parking, including structured parking;
63.8 (6) administrative expenses;
63.9 (7) wetland mitigation;
63.10 (8) soils correction; and
63.11 (9) environmental cleanup.
63.12 (e) Increments may be expended on costs, improvements, or
63.13 activities outside the area defined in subdivision 1, paragraph
63.14 (b}, wherever located, whether or not included in a tax
63.15 increment fmancing district, for sanitary sewer, sewer, and
63.16 water improvements and improvements to Coral Sea Street, Airport
63.17 Road, 82nd Lane NE, County Road J, U.S. Highway 10, and
63.18 Interstate Highway 35W so long as the improvements are related
63.19 to development within the area defined in subdivision 1,
63.20 paragraph (b).
63.21 (f) The limitation on the ability to elect the method of
63.22 computation under Minnesota Statutes, section 469.177,
63.23 subdivision 3, for an economic development district does not
63.24 apply and the city or authority may elect the method of
63.25 computation under paragraph (a) or (b) of section 469.177,
63.26 subdivision 3.
63.27 Subd. 3. [EXPIRATION.] The authority to approve tax
63.28 increment financing plans to establish a tax increment financing
63.29 district under this section expires on December 31, 2015.
63.30 [EFFECTIVE DATE.] This section is effective upon approval
63.31 by the governing body of the city of Mounds View and upon
63.32 compliance by the city with Minnesota Statutes, sections
•
63.33 469.1782, subdivision 2, and 645.021, subdivision 3.
63.34 Sec. 27. [CONVEYANCE OF STATE INTEREST IN REAL PROPERTY TO
63.35 CITY OF MOUNDS VIEW.]
63.36 (a) Notwithstanding Minnesota Statutes, section 16B.281,
64.1 16B.282, 92.45, or any other law to the contrary, the
64.2 commissioner of transportation shall convey to the city of
64.3 Mounds View all right, title, and interest of the state of
64.4 Minnesota created by corrective deed dazed March 16, 1989, in
64.5 the land located in Ramsey County, described as:
64.6 The South Half of the Northeast Quarter of Section 5,
64.7 Township 30 North, Range 23 West, Ramsey County, Minnesota;
64.8 which ties northerly and westerly of the following
64.9 described line: Commencing at the center of said Section
64.10 5; thence north on an azimuth of 359 degrees 23 minutes 10
64.11 seconds (azimuth oriented to Minnesota State Plane
64.12 Coordinate System) along the north.and south quarter line
64.13 of said Section 5 for 781.42 feet to the point of beginning
64.14 of the line to be described; thence on an azimuth of 108
64.15 degrees 12 minutes 41 seconds, 231.24 feet; thence on an
64.16 azimuth of 98 degrees 27 minutes 03 seconds, 1486.78 feet;
64.17 thence run northeasterly for 447.16 feet on a nontangential
64.18 curve, concave to the northwest, having a radius of 720
64.19 feet, a delta angle of 35 degrees 35 minutes 02 seconds and
64.20 a chord azimuth of 76 degrees 55 minutes 11 seconds; thence
• APPENDIX G-2
• 64.21 on an azimuth of 59 degrees 07 minutes 40 seconds, 192.89
64.22 feet; thence run northerly 398.14 feet on a nontangential
64.23 curve, concave to the northwest, having a radius of 850
64.24 feet, a delta angle of 26 degrees 50 minutes 15 seconds and
64.25 a chord azvmuth of 29 degrees 26 minutes OS seconds; thence
64.26 on an azimuth of 16 degrees 00 minutes 57 seconds, 303.65
64.27 feet to the north line of said Tract A and there
64.28 terminating;
64.29 Containing 40.41 acres, more or less.
64.30 (b) The conveyance shall be for consideration according to
64.31 paragraph (d) in a form approved by the attorney general.
64.32 (c) This properly was acquired by the Department of
64.33 Transportation for construction of a new portion of Trunk
64.34 Highway 10 west of Interstate Highway 35W. The property was not
64.35 needed for highway purposes. In 1988, the commissioner of
64.36 transportation deeded the property to the city of Mounds View
64.37 subject to a right of reverter.
64.38 (d) If the city of Mounds View enters into a fully executed
64.39 development agreement to redevelop the land described in
64.40 paragraph (a) by January 1, 2007, the city shall pay-the
64.41 commissioner oftransportation $1,000,000 for deposit in the
64.42 trunk highway fund. If the city of Mounds View does not enter
64.43 into a fully executed development agreement to redevelop the
64.44 land described in paragraph (a) by January 1, 2007, all right,
64.45 title, and interest in the land shall revert back to the
64.46 Department of Transportation unless the land is still used for a
64.47 public purpose. If the land is not subject to a fully executed
65.1 development agreement and is still used for a public purpose on
65.2 or after January 1, 2007, the land may continue to be used for
65.3 such public purpose by the city of Mounds View, subject to a
65.4 right of reverter if the land ceases to be used for a public
65.5 purpose.
APPENDIX G-3