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HomeMy WebLinkAboutAgenda Packets - 2016/02/01 CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, February 1, 2016 7:00 p.m. ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. Agenda Items Discussed by Consensus 1. Review City of Mounds View Economic Development Authority Public Financing Policy & Application 2. Review 2015 Citizen of the Year Nominations 3. Discuss Recruitment Process for Police Chief Position 4. Review Council / Staff Retreat Format and Expectations 5. Review Materials from the Experienced Officials LMC Conference (verbal report) 6. Review Organized Collection Questions and Expectations (verbal report) Next Work Session: Monday, March 7, 2016, at 7:00 p.m. Next City Council Meeting: Monday, February 8, 2016, at 7:00 p.m. Item #: 1 Meeting Date: February 1, 2016 Type of Business: Council Work session City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Public Financing Policy & Application Introduction: As staff was reviewing fee schedules and policies for 2016 in relation to Tax Increment Financing (TIF) and Tax Abatements, it became apparent that the TIF, and Tax Abatement policies were outdated and in need of attention. As a result, staff and the EDC has reviewed the combined TIF & Tax Abatement Policy now called, “The City of Mounds View Economic Development Authority Public Finance Policy & Application and is providing a proposed draft to be reviewed by the Council for further consideration. Discussion: The City of Mounds View’s Tax Abatement Policy was last updated September 22, 2003. The city’s TIF Policy was last updated June 12, 2000. As staff was reviewing the policies, it became apparent that some of the language in the policies is in need of updating due to statutory changes and to clarify language that often causes confusion in agreements. Ehler’s, the city’s financial consultant and Kennedy & Graven, the city’s legal consultant, have both reviewed and recommended that the TIF & Abatement policies be combined. The updated version seeks to clarify and bring the policy up-to-date with current statutes and has also included language from the many current city policies they use on a daily basis. Below is a summary of the changes. The proposed draft policy is now entitled, “The City of Mounds View EDA Public Financing Policy & Application”. The combined policy proposes the following:  Combines the purposes, objectives, and policies from the previous abatement and TIF policies. These were very similar, so all of those policy ideas are represented in the combined policy.  The TIF policy had square footage, tax and valuation minimums listed. We removed this concept because any project that meets all of the policy criteria will need to at least meet those thresholds anyway. The old policy had evaluation criteria that assigned points for these things. Excluding this simplifies the policy. Reports of Staff February 1, 2016 Page 2 of 3  We removed the section about administration of TIF, as many of the concepts discussed in that section are handled elsewhere in the policy. The remaining TIF administration items are very detailed to include in a policy. Instead, we included in the Public Financing Principals section this language - Tax Increment Finance districts will be administered in accordance with applicable Minnesota State Statutes, the Tax Increment Finance Plan, and the Development District Plan.  In the Business Subsidy section, we simplified the language to harmonize with the Business Subsidy Policy and avoid being redundant.  The application process and fees match the Business Subsidy Policy. (i.e., $3,000 non-refundable application fee and a $10,000 deposit once the assistance has been approved to move forward to be prorated and returned to the applicant for any unused portion at the city’s discretion.  The TIF and abatement policies differed in their approach to having the applicant agree to the fee. The abatement policy had a stand-alone agreement to be executed, whereas the TIF application requires a signature acknowledging the fee (and requires it to be remitted with the application). The latter approach is cleaner so that is how the policy is written. There would be a term sheet, preliminary development agreement, or some other type of agreement if the applicant gets to that point that will contractually obligate payment of the fees.  As per Ehler’s advice, we modified the sample but-for analysis to reflect current financing rates and to show a return with assistance that is just under 8%, rather than the 12% listed in the previous policy. Since Ehler’s typically advises returns limited below 12%, we thought this made sense, so as not to give the wrong impression.  There is now one application document that combines the two previous to preserve all previous elements of both.  There is one Commercial Industrial review worksheet and one Housing worksheet. We tried to leave this exactly the same as before, however there are minor changes for consistency with the policy revisions. Reports of Staff February 1, 2016 Page 3 of 3 Recommendation: 1. Review The City of Mounds View Economic Development Authority Public Financing Policy & Application and provide direction to staff, highlighting any recommended changes if any. 2. Staff will make any changes necessary before the February 8, 2016 joint Council/EDA meeting where the policy will be considered for adoption. Respectfully submitted, ______________________________ Brian Beeman Business Development Coordinator Attachments: 1. Combined Public Financing Policy & Application (Proposed) 2. 2000 Mounds View Tax Increment Financing Policy (Existing) 3. 2003 Mounds View Tax Abatement Policy (Existing) City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 1 of 21 PROPOSED DRAFT City of Mounds View Economic Development Authority Public Financing Policy & Application Combined TIF & Abatement Policy, Now Called Public Financing Policy & Application Adopted: February 2016 (Expected) Tax Rebate Financing Policy & Application Amended: September 22, 2003 Tax Abatement Policy & Application Adopted: October 10, 2000 TIF Policy Amended: June 12, 2000 TIF Policy Adopted: May 12, 1997 City of Mounds View 2401 County Road 10 Mounds View, MN 55112-1499 City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 2 of 21 763.717.4017 Table of Contents I. Policy Purpose 3 II. Objectives for the Use of Public Financing 3 III. Public Financing Principles 4 IV. Project Qualifications 5 V. Subsidy Agreement & Reporting Requirements 6 VI. Application Process for Public Financing 6 Public Financing Application 8 A. Project Information 8 B. Contact Information 9 C. Signature 10 D. Public Purpose 11 E. Job & Wage Goals 11 F. Sources & Uses 12 G. Additional Documentation and Checklist 13 H. Confidentiality Agreement 15 I. Sample But-For Analysis 17 J. Public Financing Application Review Worksheets: Commercial-Industrial Projects 18 Housing Projects 20 City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 3 of 21 I. POLICY PURPOSE: The Mounds View Economic Development Authority, hereafter referre d to as the EDA, promotes the development and enhancement of the City of Mounds View’s tax base. The purpose of this policy is to establish the City of Mounds View’s position relating to the use of public financing for private development above and beyond the requirements and limitations set forth by State Law. For the purposes of this policy, public financing may include, but may not limited be to: Tax Increment Financing (TIF), Tax Abatement, contributions of real or personal property, infrastructure de velopment, a reduction or deferral of any tax or fee, and any grants, loans, or loan guarantees made with City and/or EDA funds. This policy shall be used as a guide in the processing and review of applications requesting public financing. The fundamental purpose of providing public financing in Mounds View is to encourage desirable development or redevelopment that would not otherwise occur but-for the assistance provided through the use of such financing. It is the intent of the EDA to provide the min imum amount of public financing at the shortest term required for the project to proceed. Preference is given to projects leveraging funding from other public and private sources. The EDA reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on City services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of public financing to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. OBJECTIVES FOR THE USE OF PUBLIC FINANCING As a matter of adopted policy, the EDA will consider public financing to assist private development projects to achieve one or more of the following objectives:  To retain local jobs and /or increase the number and diversity of jobs that offer stable employment and/or livable wages and benefits as defined in the City’s Business Subsidy Policy.  To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development.  To facilitate the development process and to achieve development on sites that would not be developed without public financing assistance.  To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment.  To offset increased costs of redevelopment (e.g. contaminated site clean-up, demolition expenses) over and above the costs normally incurred in development.  To create and support a broad range of housing choices in Mounds View. City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 4 of 21  To encourage the revitalization and redevelopment of the County Road 10 Corridor.  To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government.  To enhance and diversify the City of Mounds View’s economic base and to increase the tax base.  To finance the costs associated with public infrastructure and public facilities. III. PUBLIC FINANCING PRINCIPLES The guidelines and principles set forth in this document pertain to all applications for City public financing regardless of whether they are considered a Business Su bsidy as defined by Statute. The following general assumptions shall serve as a guide for City public financing: A. All viable requests for City public financing assistance shall be reviewed by staff, and, if staff designates so, a third party municipal advisor who will inform the City of its findings and recommendations. B. TIF and abatement will be provided on a pay-as-you-go-basis. Any request for upfront assistance will be evaluated on its own merits and may require security to cover any risks assumed by the City. C. Any developer receiving public financing shall provide a minimum of ten percent (10%) owner cash equity investment in the project. D. Public financing will not be used in circumstances where land and/or property price is in excess of fair market value. Situations of blight and unsightly properties will be considered on a case-by-case basis. E. Developer shall be able to demonstrate a market demand for a proposed project. Public financing shall not be used to support purely speculative projects. F. Public financing will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. G. Public financing shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. H. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: minimum assessment agreements, letters of credit, personal guaranties, etc. I. The developer shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development experience, City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 5 of 21 general reputation, and credit history, among other factors, including the size and scope of the proposed project. J. The developer shall proactively attempt to minimize the amount o f public financing needed through the pursuit of grants, innovative solutions in structuring the deal, and other funding mechanisms. K. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. L. All public financing proposals shall optimize the private development potential of a site. M. Tax Increment Finance districts will be administered in accordance with applicable State Statutes, the Tax Increment Finance Plan, and the Development District Plan. N. When possible, TIF shall be used to finance public improvements associated with the project. The priority for the use of TIF funds is: 1. Public improvements. 2. Site preparation, site improvement, land purchase, and demolition. 3. Legal, administrative, and engineering costs. O. It is the City’s policy to establish the following types of TIF districts: 1. Economic Development Districts  It is desired that the project result in a minimum creation of one full time job per $25,000 of TIF, or  Result in a significant increase in the tax base. 2. Redevelopment Districts  The market value of a redeveloped site shall increase by a minimum of 50% of the current market value. 3. Housing Districts  May be considered on a case-by-case basis. IV. PROJECT QUALIFICATIONS All public financing requests considered by the City of Mounds View must meet each of the following requirements: A. The project shall meet at least one of the objectives set forth in Section II and satisfy all the provisions set forth in Section III of this document. B. The developer shall demonstrate that the project is not financially feasible but-for the use of public financing. C. The project shall comply with all applicable laws. D. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 6 of 21 E. The project shall serve at least two of the following public purposes:  Creation of jobs with livable wages and benefits.  Significantly increase the City’s tax base.  Enhancement or diversification of the city’s economic base.  Industrial development that will spur additional private investment in the area.  Fulfillment of defined City objectives such as those identified in the City’s Comprehensive Plan, among others.  Removal of blight or the rehabilitation of a high profile or priority site.  Enhancement or diversification of the City’s housing stock.  Development that will spur additional private investment in the area. F. The developer will pay all applicable application f ees and pay for the City and EDA’s fiscal costs, including creation of the TIF Plan, if applicable, and legal advisor time as stated in the City’s policies. V. SUBSIDY AGREEMENT & REPORTING REQUIREMENTS All developers/businesses receiving public assistance from the City shall be subject to the provisions and requirements set forth by the City’s Business Subsidy Policy and Minnesota Statutes Sections 116J.993 to 116J.995. A. In granting a business subsidy, the City shall enter into a subsidy agreement with the recipient that provides the following information: wage and job goals (if applicable), commitments to provide necessary reporting data, and recourse for failure to meet goals required by the Statutes. B. The subsidy agreement may be incorporated into a broader d evelopment agreement for a project. C. The subsidy agreement will commit the recipient to providing the reporting information required by the Statutes. VI. APPLICATION PROCESS FOR PUBLIC FINANCING A. Application for all public financing requests shall be made using the Public Financing Application provided by the City of Mounds View Business Development Coordinator, or designee. B. The Public Financing Application shall request information required within the City’s policies, including but not limited to; a detailed description of the project; a preliminary site plan; the amount of business subsidy requested; the public purpose of the project; the number and types of jobs to be created; the wages and benefits to be paid new employees; a detailed project budget with verifiable funding sources and uses; and a detailed operating pro forma, if applicable. C. The applicant agrees and acknowledges to pay a non -refundable $3,000 Public Financing Application Fee. City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 7 of 21 D. City staff and/or consultants review the application and complete the Commercial- Industrial and/or Housing Worksheets. The Application and Worksheets are primarily designed to score the desirability of the proposed project. Each project will be evaluated on a case-by-case basis to determine the extent to which they meet the City’s desired objectives. E. At the time of acceptance by staff of the Public Financing Application, the applicant shall deposit $10,000 with the City to cover attorney and consultant costs incurred as part of establishing a TIF district or abatement, the TIF plan, drafting and negotiating a development agreement, and conducting any fiscal analysis that may be required to meet the requirements of utilizing any public financing. If additional expenses are incurred beyond the $10,000, prior to the execution of a development agreement, the City shall notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. Any unused portion of the $10,000 deposit may be prorated and returned to the appl icant at the city’s discretion. F. Following a review by appropriate City staff/consultants the application shall be referred to the Economic Development Authority for further action. G. Before granting a business subsidy that exceeds $150,000, the City shall provide public notice and hold a hearing on the subsidy. City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 8 of 21 Public Financing Application A. PROJECT INFORMATION Property Information (please print) Address: __________________________________________________________________________ Parcel Number: _____ - _____ - _________ Parcel Number: _____ - _____ - _________ Parcel Number: _____ - _____ - _________ Parcel Number: _____ - _____ - _________ The project will be: ____ Industrial: ____ New Construction ____ Expansion Redevelopment / Rehab. Office/research facility that conforms to Business Park zoning standards ____ Commercial Redevelopment or Rehabilitation ____ Housing Redevelopment or Rehabilitation ____ Other The project will be: ____Owner Occupied ____Leased Space If Leased Space ____ Percent Occupied 6 months after Certificate of Occupancy Total Amount of Public Financing Requested: $ over years. Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: Phase I $ Phase II $ Phase I Construction Start Date________ Construction Completion Date_________ Phase II Construction Start Date________ Construction Completion Date_________ Percent of project complete on December 31, current year. ________________ Brief description of the proposed project: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 9 of 21 B. CONTACT INFORMATION Public Information Notice Generally, correspondence to and from staff is considered public information. Specific data related to a financial assistance request is deemed not public: Financial Information, Financial Statements, Net worth Calculations, Business Plans, Income and Expense projections, Balance Sheets, Customer Lists, Income Tax returns, Credit Reports, Design, Market, and Feasibility Studies Not Paid for with Public Funds. When public financial assistance is received, only the following remains not public: Business Plans, Income and Expense projections, Customer lists, Income tax returns, design, market, and feasibility studies not paid for with public funds, income and expense projections not related to financial assistance. The City does allow an applicant to submit sensitive financial information directly to the City’s financial consultant, for additional security. All data requests will be processed in accordance with Minn. Stat. Ch. 13. Property Owner Information (please print) Name: ________________________________________ Personal E-mail address: _______________________________________________________________ Personal Residence Address: ______________________ ______________ _______ _______________ Street City State Zip Code Phone: ____________________________________________________________________________ Legal Name of Business: _______________________________________________________________ Business E-mail address: _______________________________________________________________ Business Address: _______________________________ ________________ ______ __________ Street City State Zip Code Check One: Proprietor Corporation Partnership Federal ID # State ID # Agent Information (print) Same as Property Owner Different, as below (Check one) Name: _____________________________ E -mail address:___________________________________ Address: _______________________________ ________________ ______ __________ Street City State Zip Code Phone (w): _______________________ (m): _______________________ (d): ___________________ Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 10 of 21 Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email C. SIGNATURE I certify that is defined as a Small Business, For-Profit and is not an Religious, (Business name) Political, Casino, Sports Facility, or Pornographic Enterprise. I further certify that all information provided in this application is true and correct to the best of my knowledge. I authorize the City of Mounds View and its consultants to check credit references and verify financial and other information. I further agree, if approved, to the loan security and guarantees required by the Business Subsidy Policy. I agree to provide any additional information as may be requested by the City. Agreement to Pay Costs of Review It is the policy of the City of Mounds View to require applicants to pay costs incurred by the City in reviewing and acting upon applications, so that these costs are not borne by the taxpayers of the City. These costs include all of the City’s out-of-pocket costs for expenses, including the City’s costs for review of the application by the City’s Financial Consultant and City Attorney, or other consultants, recording fees, and necessary publication costs. The application processing fees cover anticipated costs; costs incurred above the application fee will be invoiced as they are incurred, and payment will be due within thirty (30) days. Application fees are not refundable. If payment is not received as required by this agreement, the City may suspend the application review process and may deny the application for failure to comply with the requirements for processing the application. Payment for costs will be required whether the application is granted or denied. The undersigned has received the City’s policy regarding the payment of costs of review, understands that reimbursement to the City of costs incurred in reviewing the application will be required, agrees to reimburse the City as required in the policy and make payment when billed by the City, and agrees that the application may be denied for failure to reimburse the City for costs as provided in the policy. Note: All Major shareholders will be required to sign personal guarantees and a minimum assessment agreement if up front financing of the project is required. APPLICANT SIGNATURE: TITLE: DATE: City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 11 of 21 D. PUBLIC PURPOSE It is the policy of the City of Mounds View that the use of Public Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose: ____Creation of jobs with livable wages and benefits. ____Significantly increase the City’s tax base. ____Enhancement or diversification of the city’s economic base. ____Industrial development that will spur additional private investment in the area. ____Fulfillment of defined city objectives such as those identified in the City’s Comprehensive Plan, among others. ____Removal of blight or the rehabilitation of a high profile or priority site. ____Enhancement or diversification of the city’s housing stock. ____Development that will spur additional private investment in the area. E. JOB & WAGE GOALS Hourly Wage (excluding Benefits) A. Existing Jobs Retained B. (New) Full- time Job Creation within 2 years C. (New) Part-time Job Creation within 2 years Total Jobs (A+B+C) Hourly Value of Health Insurance Hourly Value of Non-Health Insurance Benefits $9.00 to $10.99 $ $ $11.00 to $12.99 $ $ $13.00 to $14.99 $ $ $15.00 to $16.99 $ $ $17.00 to $18.99 $ $ $19.00 to $20.99 $ $ $21.00 to $22.99 $ $ $23.00 to $24.99 $ $ $25.00 to $26.99 $ $ $27.00 to $28.99 $ $ $29.00 to $30.99 $ $ $31.00 and higher $ $ City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 12 of 21 F. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Owner Cash Equity $ Fed Grant/Loan $ State Grant/Loan $ EDA Funds $ Tax Abatement $ ID Bonds $ TOTAL $ USES AMOUNT Land Acquisition Relocation $ Demolition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Financing Costs $ Soft Costs $ Contingencies $ TOTAL $ *Include term and rate of bank loan and/or other financing City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 13 of 21 G. ADDITIONAL DOCUMENTATION AND CHECKLIST Please provide one paper and one electronic copy of following: (Incomplete applications will delay the review of an application) _______A) Application fee of $3,000. _______B) Written Narrative: Please give a brief summary of your business, its products or services, the project and how this subsidy will impact your project. The narrative should include a statement demonstrating how the project meets the public purpose in IV of this policy (page 5). _______C) Business Plan. The business plan should include the following: 1. Description of Business 2. Ownership 3. Management 4. Date Established 5. Products/Services 6. Future Plans 7. Market for Business _______ D) Project Proforma1 1. Sources and uses of funds to finance the project, and 2. Operating cash flow assumptions that include: a. Projected revenues, b. Operating expenses, c. Net operating income, and d. Annual debt service and loan payments. _______ E) Financial Statements, for previous two years and the current year to date 1 ______ Profit & Loss Statement ______ Balance Sheet _______ F) Financial Projections, for term of incentive, up to 10 years1 _______ G) Personal Financial Statements, of all major shareholders, partners, and guarantors _______ H) Letter of Commitment, from applicant pledging to complete during the proposed project duration _______ I) Letter of Commitment, from the other sources of financing, stating terms and conditions of their participation in project completion City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 14 of 21 _______ J) Written Statement of Contact Information (Name, Company, Address, Email, Phone, Fax) for project team, including: attorney, accountant, financing sources (lenders, partners, etc.), parent company, architect K) Construction Plans and Itemized Project Construction Statement L) Attach the following documentation as Exhibits Exhibit A – Corporation/Partnership Description Exhibit B – List of Shareholders/Partners Exhibit C – But-For Analysis Exhibit D – List of Prospective Lessees (if applicable) Exhibit E – Legal Description and PID Number(s) _______M) Site and Construction Plans 1 For additional confidentiality, sensitive financial documents, while not-public information, may be submitted directly to the City’s financial consultant by signing the attached confidentiality agreement and including it with the application. City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 15 of 21 H. CONFIDENTIALITY AGREEMENT (Sample Agreement) This agreement is made this ____ day of ____________, 20__, by and between ___________________________, a ___________________ company, hereinafter “Developer,” and Ehlers, Incorporated a Minnesota corporation, hereinafter “Ehlers.” WHEREAS, Developer is _______________ (description of project), hereinafter the “Project,” pursuant to a _______________________ (form of agreement) with __________________________ (public entity), hereinafter the “City,” dated _____________________; and WHEREAS, Ehlers has been hired by the City to investigate certain financial aspects of the Developer and the Project; and WHEREAS, in conjunction with such investigation, Ehlers desires to examine the financial information of Developer relative to Developer and the Project; and WHEREAS, Developer is willing to disclose such information only on the condition that such information be kept confidential. NOW, THEREFORE, in consideration of the terms and mutual covenants contained herein, the parties agree as follows: 1. Developer agrees to make its financial information, development pro forma and projection, budget information, and such other financial information concerning the Project as Ehlers may reasonably request, hereinafter the “Information,” available for inspection by Ehlers, but solely for the purpose set forth above. 2. Ehlers shall accept the Information in strict confidence solely for that purpose and shall make no other use of the information, or disclose it to any other person or party, including the City, without the express written consent of Developer. Notwithstanding the foregoing, Ehlers may use the Information in summary form only to report its findings to the City provided that Ehlers first presents City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 16 of 21 its proposed report to Developer and obtains Developer’s written consent to ensure that no inadvertent disclosures of confidential information or other inaccurate information are contained in such report. 3. Inspection of the Information shall take place in such manner and at such place and time as the parties may agree. The Information shall not be copied, duplicated, abstracted, summarized or recorded, directly or indirectly, by any means whatsoever, without the prior consent of Developer. 4. The Information shall remain the property of Developer, and any Information provided in tangible form shall be returned to Developer upon completion of such inspection. Any copies, duplications, abstracts, summaries or other recordings of the Information made with Develope r’s consent shall be returned to Developer upon demand. 5. Ehlers agrees that any breach of the obligation of confidentiality imposed hereby shall constitute irreparable harm to Developer and shall entitle Developer to equitable relief enjoining any further breaches of this Agreement, together and in conjunction with any and all such other remedies as may be available to Developer at law or in equity. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. DEVELOPER By______________________________ Its________________________ EHLERS INC. By______________________________ Its________________________ City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 17 of 21 I. SAMPLE BUT-FOR ANALYSIS WITH NO WITH PUBLIC FINANCING PUBLIC FINANCING SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,900,000 Equity 2,400,000 2,400,000 Public Financing 0 700,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $5.00 500,000 100,000 $8.00 800,000 Rent-Space 2 50,000 $4.50 225,000 25,000 $8.50 212,500 Rent-Space 3 50,000 $4.00 200,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 925,000 925,000 Mortgage 20 Year Term 792,446 20 Year Term 734,664 5.50% Interest 5.50% Interest 9,600,000 Principal 8,900,000 Principal Net Income 132,554 190,336 Total Return on Equity 5.52% 7.93% City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 18 of 21 J. PUBLIC FINANCING APPLICATION REVIEW WORKSHEET – COMMERCIAL/INDUSTRIAL PROJECTS 1. The project meets the criteria set forth in Section IV of the City’s Public Financing Policy. a) Meets at least one objective in Section II all provisions in Section III. b) Demonstrates need for TIF with the but-for analysis. c) The project complies with all applicable laws. d) Consistent with all city plans and ordinances. e) Serves at least two public purposes as defined in Section IV (E). f) Developer has paid the application fee. 2. Ratio of Private to All Public Investment in Project: Points: $ Private investment 5:1 5 $ Public Investment 4:1 4 ____________Ratio Private: Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Job Creation in the City of Mounds View: Points: Number of new jobs as a result of the project. 40+ 5 Number of existing/retained jobs divided by 2. 30+ 4 Total 20+ 3 10+ 2 Less than 10 1 4. Ratio of Public Investment to Job Creation: Points: $ Public Investment $15,000 or less 5 Number of new jobs created/retained $20,000 or less 4 $ Public Investment per new job $22,000 or less 3 $25,000 or less 2 Over $25,000 1 5. Wage Level of new jobs created/retained: Points: Minimum hourly wage Over $21/ hour 5 of jobs created/retained: $18-21 / hour 4 $14-17 / hour 3 $10-13 / hour 2 Under $10 / hour 1 6. Project size: Points: The project will result in the construction 80,000+ 5 of square feet 65,000+ 4 50,000+ 3 35,000+ 25,000+ 2 1 TO BE COMPLETED BY CITY STAFF OR CONSULTANTS City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 19 of 21 Total Points: Overall project analysis: High Moderate Low Not Eligible 45-38 points 37-29 points 28-20 points 19-0 points 7. Market Value/Tax Base Generation: The project will result in a per square foot estimated market value (land and building) of Industrial $80/sf+ $70/sf+ Points: Commercial $110/sf+ 5 $100/sf+ 4 $60/sf+ $90/sf+ 3 $50/sf+ $80/sf+ 2 $40/sf+ $70/sf+ 1 8. Type of Project: 100% Owner Occupied Points: 5 Mix Owner Occupied & Investment 4 Investment Property 3 9. Use: Manufacturing Points: 5 Research & Development 4 Commercial Redevelopment 3 Warehouse/Distribution 2 Housing 1 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 11. Bonus Points Bonus Points: The project will be 100% Pay-as-you-go TIF. 3 points The project contributes to the goals of the Met-Council. 2 points  Product promotes Industry Clusters, Sensible Land Use, Transportation, OR Workforce Housing  Project utilizes significant energy efficient design &/or materials in construction. Sub - Total Points: of a possible 45 points. City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 20 of 21 PUBLIC FINANCING APPLICATION REVIEW WORKSHEET – HOUSING PROJECTS 1. The project meets the criteria set forth in Section IV of the City’s Public Financing Policy. a) Meets at least one objective in Section II all provisions in Section III. b) Demonstrates need for TIF with the but-for analysis. c) The project complies with all applicable laws. d) Consistent with all city plans and ordinances. e) Serves at least two public purposes as defined in Section IV (E). f) Developer has paid the application fee. 2. Ratio of Private to All Public Investment in Project: Points: Greater than 7:1 10 $ Private investment 6:1 8 $ Public Investment 5:1 6 Ratio Private: Public Financing 4:1 4 3:1 2 Less than 3:1 1 3. Project provides housing that is restricted Points: to persons 55 years and older: 10 4. Market Value/Tax Base Generation: Points: Project will result in an estimated market value per unit $135,000/Unit 5 (land and building) of $125,000/Unit 4 $115,000/Unit 3 $105,000/Unit 2 $ 95,000/Unit 1 5. Project proposes rehabilitation of existing housing, housing stock, and maximizes utilization of existing infrastructure: Points: 10 6. Project proposes a location near existing jobs, transportation, recreation, retail services, social services, and schools: Points: 3 TO BE COMPLETED BY CITY STAFF OR CONSULTANTS City of Mounds View Public Financing Policy & Application Adopted February, 2016 (Expected) Page 21 of 21 7. Project includes community/ neighborhood: Points: facility (pool, community center, etc.) Points based on scale of improvement (1-5) Yes 5 8. Type of Housing Project: Points: 100% Owner Occupied 2 Investment Property 1 9. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 10. Bonus Points Bonus Points: The project will not be 100% Pay-as-you-go TIF. -5 points The project does not require modification to land use plan. 2 points The project contributes to the goals of the Met-Council. 2 points  Product promotes Sensible Land Use, Livable Communities criteria, Transportation, OR Workforce Housing,  sensible use of energy, and/or project utilizes significant energy efficient design &/or materials in construction. Sub - Total Points: of a possible 50 points. Total Points: Overall project analysis: Rank Points Max eligible High 45-50 points 100% Moderate 37-44 points 85% Low 30-36 points 65% Not Eligible 0-29 points ORIGINAL City of Mounds View Economic Development Authority Tax Increment Financing Policy & Application Adopted: 5/12/97 Revised: June 12, 2000 M:\Administration\Economic Development\TIF\POLICY & APPLICATION\6-12-00, TIF Policy Updated (Revised Signatures).doc 2 Table of Contents I. General Policy 3 II. Projects Eligible for Tax Increment Financing 3 III. Costs Eligible for Tax Increment Financing 3 IV. Determination of the Amount of Assistance to the Applicant 4 V. Type of Assistance 4 VI. Establishing a Tax Increment Finance District 5 VII. Administration, Pooled Funds, and Parcel Decertification 5 VIII. Application Process 6 IX. Attachment A: Application for Tax Increment Finance 7 X. Attachment B: Deposit Agreement 11 XI. Attachment C: Application Proposal Review Worksheet 14 XII. Sample But-For Analysis 16 3 I. GENERAL POLICY: The Mounds View Economic Development Authority has the powers under the Minnesota Statute Sections 469.124 through 469.137 and sections 469.001 through 469.047 to govern and monitor the use of tax increment financing for Mounds View’s tax increment districts and the Mounds View development district which encompasses the entire boundaries of the City of Mounds View. It is the responsibility of the Mounds View Economic Development Authority to use tax increment financing as a tool to accomplish the City’s economic development and redevelopment goals and objectives. The Mounds View Economic Development Authority understands and abides by the fundamental principal which makes tax increment financing viable to encourage development and redevelopment which would otherwise not occur. The Mounds View Economic Development Authority shall consider tax increment financing in cases that serve to accomplish the City’s development goals and activities as hereby defined in projects eligible for tax increment financing. II. PROJECTS ELIGIBLE FOR TAX INCREMENT FINANCING: Projects eligible for consideration of Tax Increment Financing assistance per the Mounds View Development Project Plan dated May 9, 1994 include, but are not limited to (1) the attraction, retention, rehabilitation and preservation of commercial, industrial, retail, residential, recreational and public service facilities; (2) new and rehabilitated public infrastructure; (3) community and other public service centers; (4) senior/mature adult and/or other housing development partnerships or other multi-use housings projects and facilities; (5) other public utilities (including telecommunications); (6) business incubator loan and other business programs; and (7) transportation systems. More emphasis will be placed on those items which increase the tax base, eliminate blight, and the m eet the City’s ec onom ic and redevelopm ent goals. III. COSTS ELIGIBLE FOR TAX INCREMENT FINANCING: Project costs qualifying for Tax Increment Financing assistance, as defined under the TIF Act, include utilities design, architectural and engineering fees directly attributable to site work, site related permits, earthwork/excavation, soils correction, landscaping, utilities (sanitary sewer, storm sewer, and water), streets and roads, street/parking lot paving, street/parking lot lights, curb and gutter, sidewalks, land acquisition, special assessment, legal (relating to acquisition, financing, and closing fees), soils tests and environmental studies, surveys, park dedication fee, SAC, WAC, charges, titles insurance and TIF application deposit. IV. DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT: Within TIF Districts The amount of Tax Increment Financing provided to an applicant will be based, in part, on the analysis of information provided on the application for Tax Increment Financing assistance (Attachment “A”), amount of increment generated by the project as evaluated by the City’s Financial and/or Bond Counsel and the City’s economic and redevelopment goals. The level of assistance provided will be evaluated on a case by case basis and may reflect an increase or decrease in assistance dependent upon the level of increase in the tax base, amount of elimination of blight and/or a number of variables that may substantiate the need for assistance. An adjustment in the amount of assistance that can be provided is at the sole discretion of the Board of the Economic Development Authority as long as the requested uses are legal under the Minnesota State Statutes for the use of tax increment financing. W ithin the Developm ent District (herein ref erred to as the “City” lim its) but outside of T IF Districts The evaluation of Tax Increment Financing assistance that could be provided to an applicant will be based on (A) the analysis of information provided on the application for Tax Increment Finance assistance (Attachment “A”), (B) square footage cost of the project, (C) balance available in the Economic Development Authority excess tax increment fund and (D) proof of need for assistance under the “but for” test for use of tax increment financing. See Attachment D for a sample “but for” analysis. 4 V. TYPES OF ASSISTANCE: Within TIF Districts Tax Increment Financing can be provided in either “pay as you go” or “up front” payments. “Pay as you go” is wherein the Mounds View Economic Development Authority compensates the applicant an amount equal to a predetermined percentage of the actual increment produced by the project for a predetermined number of years. The applicant pays for the (re)development up front and then annual payments are issued to the applicant based on the need for assistance and increment generated from the project. “Up front” payments is wherein the Mounds View Economic Development Authority must issue revenue or general obligation bonds to pay for the (re)development prior to the completion of the project. The increment from the project is then used for repayment of the bonds. The Mounds View Economic Development Authority gives preference to the use of “pay as you go” assistance to finance private development projects due to the reduced risk to the community. The EDA will consider “up front” payment projects that would benefit the entire community and are not possible to be funded under a “pay as you go” basis. Within the City but outside of TIF Districts Financing from the dedicated tax increment fund can be provided in annual installments to the applicant based on the positive cash flow balance in the Economic Development Authority’s dedicated tax increment fund and need for assistance based on analysis of the “but for” test for the project. The dedicated tax increment fund includes a value based on the use and is adjusted along with the budget process and goals and objectives for economic and redevelopment on an annual basis. VI. ESTABLISHING A TAX INCREMENT FINANCE DISTRICT: New tax increment finance districts in the City of Mounds View will be established in accordance with applicable Minnesota State Statutes, the Tax Increment Finance Plan, and the Development District Plan. VII. ADMINISTRATION, POOLED FUNDS & PARCEL DECERTIFICATION: Administration Tax Increment Finance districts will be administered in accordance with applicable Minnesota State Statutes, the Tax Increment Finance Plan, and the Development District Plan. Pooled Funds Pooled funds are available when the current years increment exceeds existing obligations. In the past, funds have been allocated for low interest improvement loans, housing replacement, and Highway 10 redevelopment. The Mounds View Economic Development Authority will address the future use of pooled funds in the following manner: (1) view tax increment as a means secondary to programmatic objectives; (2) allocate all available pooled increment; and (3) the Economic Development Commission and Economic Development Authority decides on future development needs and uses TIF and/or other means to accomplish those ends. (4) in the event that the Economic Development Authority determines pooled increment should be returned to the respective taxing jurisdictions, the Economic Development Commission will evaluate the potential action and make a recommendation to the Economic Development Authority. To more effectively utilize pooled increment, the Economic Development Commission will recommend funding priorities to the Economic Development Authority. This will be done in conjunction with the annual budgetary process. At this time, potential parcels for decertification will also be examined Requests made for the use of pooled funds by a business or developer outside established TIF districts are discussed in sections IV and V. Parcel Decertification Parcels in Mounds View’s Tax Increment Finance districts will be decertified as required by and in 5 accordance with applicable Minnesota State Statutes, the Development District Plan, and the TIF Plans as 6 amended. In the event that the Economic Development Authority desires to return pooled increment to the respective taxing jurisdictions, the following guidelines will be observed: (1) reserves should be greater than or equal to next years projected increment; and (2) prior to disbursing pooled funds to the respective taxing jurisdictions, the Economic Development Authority will consider future projects and community needs. (3) in the event that parcels are going to be decertified, the Economic Development Commission will evaluate the potential action and make a recommendation to the Economic Development Authority. VIII. APPLICATION PROCESS: The following delineates the Mounds View Economic Development Authority’s application process for Tax Increment Financing assistance: 1. Applicant submits the completed application (Attachment “A”) and Deposit Agreement (Attachment “B”) along with all application fees. 2. City staff reviews the application and completes the Application Review Worksheet (Attachment “C”). 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, a development agreement, business subsidy agreement, and amendments to the Tax Increment Financing Plan, along with all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. 5. If applicable, notices are published and sent to the county and school board. 6. If necessary, public hearing(s) on the proposed project are held. 7. The Economic Development Authority considers final approval of the proposal. 7 IX. Attachment A: APPLICATION FOR TAX INCREMENT FINANCING A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following:  Brief description of the corporation/partnership’s business, including history, principal product or service, etc… Attach as Exhibit A .  Brief description of the proposed project. Attach as Exhibit B.  List names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. Attach as Exhibit C.  A but-for analysis. Attach as Exhibit D. Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email 8 B. PROJECT INFORMATION The project will be: Vacant Land Development New Construction Expansion Commercial Redevelopment: New Construction Expansion Industrial Redevelopment: Housing: New Construction Rehabilitation New Construction Rehabilitation Other The project will be: _Owner Occupied Leased Space If leased space, please attach a list names and addresses of future lessees and indicate the status of commitments or lease agreements. Attach as Exhibit E. Project Address Legal Description Site Plan Attached: Yes No Building Square Footage: Number of Units if Applicable: Amount of Tax Increment Requested: Land $ Public Improvement $ Site Improvement $ Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: $ Construction Start Date: Construction Completion Date: If Phased Project: Year % Completed Year % Completed C. PUBLIC PURPOSE It is the policy of the City of Mounds View that the use of Tax Increment Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. _Job Creation: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created _New industrial development which will result in additional private investment in the area. _The project contributes to the fulfillment of the City’s economic development and redevelopment goals _Removal of blight. _Rehabilitation of a high profile or priority site. _Provision of Low and Moderate Income Housing. _Other: 9 D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Equity $ Fed Grant/Loan $ State Grant/Loan $ Tax Increment $ ID Bonds $ Other $ TOTAL $ USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ Other $ TOTAL $ 10 E. ADDITIONAL DOCUMENTATION Applicants will also be required to provide the following documentation. A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Three Years Profit & Loss Statement Balance Sheet C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date D) Two Year Projections F) Personal Financial Statements of all Major Shareholders if “Up Front” Financing is Requested Profit & Loss Current Tax Return G) Letter of Commitment from Applicant Pledging to Complete during the proposed project duration H) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project _ I) Application fee of $5000 J) Additional information that will be helpful in evaluating your application Note: All Major shareholders will be required to sign personal guarantees if up front financing of the project is required. The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the Mounds View Economic Development Authority to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the Authority after the filing of this application. Applicant Name Date By Its 11 X. Attachment B: Deposit Agreement Deposit Agreement for Evaluation of Tax Increment Assistance By and Between the Mounds View Economic Development Authority and (The Applicant) This agreement made as of the day of , 2005 by and between the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic, organized and existing under the laws of the State of Minnesota (the “EDA”) and (“The Applicant”). W ITNESSETH: WHEREAS, the EDA has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the “Act”); and WHEREAS, pursuant to and in furtherance of the objectives of the Act, the EDA has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in connection is engaged in carrying out the Mounds View Economic Development Project as detailed in EDA document dated 5/9/94 (the “Project”) within the City; and WHEREAS, the redevelopment and development of property within the Project by private developers are stated objectives of the Project Plan. NOW THEREFORE, in consideration of a mutual covenants made herein and for other good and valuable consideration set forth in the Agreement, the parties agree as follows: Section 1. (The Applicant ) agrees to provide the EDA with a deposit of $5,000 for the EDA’s consultants to investigate the feasibility of providing Tax Increment Financing assistance to (The Applicant) for the redevelopment of the (the “Property”). If the EDA incurs additional expenses directly related to the feasibility of providing Tax Increment Assistance to (The Applicant) beyond the $5,000, prior to the execution of the Developer’s Agreement, the EDA shall notify (The Applicant) in writing and (The Applicant) will be required to deposit additional funds as a condition of the EDA entering into any such Development Agreement. Section 2. If the project is approved and (The Applicant) proceeds with the project, the EDA shall reimburse (The Applicant)’s deposit to the extent permissible under the TIF Act. If (The Applicant) does not proceed with the redevelopment of the Property due to the decision of either the EDA or (The Applicant), the EDA shall reimburse the applicant for the unused portion of the deposit. Section 3. Nothing contained in this agreement shall in any way obligate either party to proceed with the redevelopment of the Property or otherwise enter into a Development Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 11 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY BY: Rob Marty ITS PRESIDENT BY: Kurt Ulrich ITS EXECUTIVE DIRECTOR STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2005, by Rob Marty and Kurt Ulrich, the President and Executive Director respectively of the Mounds View Economic Development Authority named in the foregoing instrument. Notary Public 12 (The Applicant) BY: ITS: STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2000, by , the of (The Applicant) named in the foregoing instrument. Notary Public 13 XI. Attachment C: APPLICATION PROPOSAL REVIEW WORKSHEET REDEVELOPMENT DISTRICT 1. Ratio of Private to Public Investment in Project: Points: $ Private investment 4:1 5 $ Public Investment 3:1 4 Ratio of Private to Public Financing 2:1 3 1:1 2 Less than 1:1 1 2. Increase in Real Estate Value: Points: $ Value of Site before redevelopment 1:5+ 5 $ Value of site after redevelopment 1:4 4 $ Ratio of value before:after redevelopment 1:3 3 1:2 2 Less than 1:2 1 3. New Job Creation in the City of MoundsView: Points: Number of net new jobs as a result of the project. 50+ 5 Number of existing/retained jobs divided by 10. 30+ 4 Total 25+ 3 15+ 2 Less than 15 1 4. Ratio of TIF to new jobs created: Points: $ TIF request $15,000 or less 5 Number of new jobs created $20,000 or less 4 $ of TIF per new job created $22,000 or less 3 $25,000 or less 2 Over $25,000 1 5. Wage Level of jobs created: Points: Average hourly wage Over $21/ hour 5 of jobs created: $18 –21 / hour 4 $14-17 / hour 3 $10-13 / hour 2 Under $10 / hour1 6. Project size: Points: The project will result in a net square Over 100,000 5 footage of 80,000+ 4 60,000+ 3 40,000+ 2 40,000 or less 1 14 7. Type of Project: Points: 100% Owner Occupied 5 Mix Owner Occupied & Investment 4 Investment Property 3 8. Use: Points: Industrial 5 Warehouse/Distribution 4 Commercial 3 Housing 3 9. The project will pay annual Points: property taxes in the first fully assessed 120,000+ 5 year of $ 80,000+ 4 60,000+ 3 40,000+ 2 20,000+ 1 Below 20,000 0 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 11. Bonus Points Bonus Points: The project will be 100% pay-as-you-go TIF. 3 points The project contributes to Highway 10 Redevelopment 3 points Total Points: Overall project analysis: High 50-43 points Moderate 42-34 points Low 33-26 points Not Eligible 25-0 points Sub - Total Points: of a possible 50 points. 15 XII. ATTACHMENT D: SAMPLE BUT-FOR ANALYSIS WITHOUT W ITH TAX INCREMENT FINANCING TAX INCREMENT FINANCING SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,00 Tax Increment Financing 0 933,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 288,061 Total Return on Equity 7.74% 12.00% N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC ORIGINAL Tax Rebate Finance Policy & Application City of Mounds View, Minnesota Adopted: October 10, 2000 Revised: September 22, 2003 M.V. Tax Rebate Policy 9.22.03 Final 2 Table of Contents I. Policy Purpose 3 II. Difference Between Tax Rebate Financing & TIF 3 III. Objectives of Tax Rebate Financing (TRF) 3 IV. Policies for the Use of TRF 4 V. Project Qualifications 5 VI. Subsidy Agreement & Reporting Requirements 6 VII. Application Process 7 VIII. Tax Rebate Financing Application 9 IX. Exhibits A. Application Fee Agreement 13 B. Application Review Worksheet 16 C. Sample But-For Analysis 18 M.V. Tax Rebate Policy 9.22.03 Final 3 I. POLICY PURPOSE The Mounds View Economic Development Authority, hereafter referred to as the EDA, promotes the development and enhancement of the City of Mounds View’s tax base. The purpose of this policy is to establish the EDA’s position relating to the use of tax rebate financing, otherwise referred to as tax abatement. This policy shall be used as a guide in the processing and review of applications requesting tax rebate assistance. The fundamental purpose of tax rebate financing in Mounds View is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided. It is desirable that Tax Increment Financing (TIF) be utilized in lieu of TRF whenever possible and if it can be shown to be beneficial to the City to do so. The Mounds View EDA is granted the power to utilize tax rebate financing by the Minnesota Tax Abatement Act, as amended. The EDA reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of a tax rebate to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TAX REBATE & TIF The primary difference between Tax Rebate Financing (TRF) and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project by the EDA, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when tax rebate financing is requested, each political subdivision has the option of granting its portion of the current and/or increased taxes to the project. Depending on the position of the respective taxing jurisdictions, the dollars generated by TRF are generally less than the dollars generated with TIF. III. OBJECTIVES OF TAX REBATE FINANCING As a matter of adopted policy, the EDA will consider using tax rebate financing to assist private development projects to achieve one or more of the following objectives: M.V. Tax Rebate Policy 9.22.03 Final 4  A. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits.  B. To enhance and diversify the City of Mounds View’s economic base and to increase the tax base.  C. To remove blight and/or encourage redevelopment of commercial, industrial , or high priority sites in the city that result in high quality redevelopment and private reinvestment.  D. To facilitate the development process and to achieve development on sites which would not be developed without TRF assistance.  E. To encourage the revitalization and redevelopment of the County Highway 10 Corridor.  F. To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development.  G. To offset increased costs of redevelopment (i.e. contaminated site clean- up, demolition expenses) over and above the costs normally incurred in development.  H. To create housing opportunities.  I. To finance the costs associated with public infrastructure and public facilities.  J. To contribute to the implementation of other public policies, as adopted by the EDA from time to time, such as the promotion of quality architectural design, enhanced recreational opportunities, and decreasing capital and/or operating costs of local government. IV. POLICIES FOR THE USE OF TRF A. Tax rebate assistance will be provided to the developer upon receipt of taxes by the EDA, otherwise referred to as the pay-as-you-go method. Requests for up-front financing will be considered on a case-by-case basis. B. It is the intent of the EDA to provide the minimum tax rebate financing, as well as other incentives, at the shortest term required for the project to proceed. Unless there is an extraordinary financial need by the developer, the fiscal disparities portion of the tax capacity value will not be considered for tax rebate. M.V. Tax Rebate Policy 9.22.03 Final 5 C. Any developer receiving a tax rebate shall provide a minimum of twenty percent (20%) equity investment in the project. Projects utilizing the SBA 504 program will be required to provide a minimum of ten percent (10%) cash equity investment. D. Tax rebate financing will not be used in circumstances where land and/or property price is significantly in excess of fair market value. E. All TRF proposals shall optimize the private development potential of a development site. F. A market demand shall be demonstrated for the proposed project. G. Tax rebate assistance will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. H. Tax rebate assistance shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. I. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, and additional documentation as necessary. J. The developer shall adequately demonstrate, to the EDA’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. K. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the EDA or its consultants. V. PROJECT QUALIFICATIONS All tax rebate projects considered by the Mounds View EDA must meet each of the following requirements: A. The project shall meet at least two of the objectives set forth in Section III of this document. M.V. Tax Rebate Policy 9.22.03 Final 6 B. The use of tax rebate financing will be limited to:  Industrial development, expansion, redevelopment, or rehabilitation; or  Commercial redevelopment or rehabilitation; or  Office, or research and development facilities; or  Housing and infrastructure; or.  Public infrastructure Not all projects will be located along County Highway 10 or will create housing in the City. C. The developer shall demonstrate that the project is not financially feasible but-for the tax rebate financing provided. D. The project shall comply with all provisions set forth in Minnesota’s Tax Abatement Law, statues 469.1812 to 469.1815, as amended. E. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. VI. SUBSIDY AGREEMENT & REPORTING REQUIREMENTS All developers/businesses receiving a tax rebate, or other assistance equal to or in excess of $25,000 from the Mounds View EDA shall be subject to the provisions and requirements set forth by the City’s Business Subsidy Criteria as adopted, and Minnesota Statute 116J.993 to 116J.995 as summarized below. All developers/businesses receiving tax rebate assistance shall enter into a subsidy agreement with the Mounds View EDA that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by Minnesota’s statute 116J.994. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and business subsidy agreement have been meet, whichever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the Mounds View EDA no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where the tax rebate assistance is used for a period of five years after the benefit is received, or the length of the TRF assistance, whichever is shorter. In addition to attaining or exceeding the jobs and wages goals s et forth in the Subsidy Agreement, the borrower shall achieve at least one of the objectives set forth in Section III of this document. M.V. Tax Rebate Policy 9.22.03 Final 7 Developers / Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, termination of the assistance, and be deemed ineligible by the State to receive any loans or grants from public entities for a period of five years. VII. APPLICATION PROCESS FOR TAX REBATE FINANCING A. PRIVATE DEVELOPMENT/REDEVELOPMENT PROJECTS 1. Applicant submits the completed application along with a non-refundable $1,000 application fee. The application fee will be used toward the cost of professional or technical services provided in the evaluation of the application, and legal costs incurred by the City for preparation of legal documents. If the EDA incurs additional expenses directly related to the evaluation of the application, or for professional or legal services beyond the $1,000, the EDA shall notify the applicant in writing and the applicant will be required to deposit additional funds. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. 5. If necessary, public hearing(s) on the proposed project are held. 6. The EDA grants final approval or denial of the proposal. B. OTHER POLITICAL SUBDIVISIONS It is recommended that applicants intending to seek tax rebate financing from Ramsey County and/or School District 621 make their applications to those bodies concurrent with their application to the Mounds View EDA. For more information on applying for a tax rebate financing from Ramsey County and/or School District 621, contact: Judy Karon Director, Community and Economic Development Ramsey County 651-266-8006 M.V. Tax Rebate Policy 9.22.03 Final 8 Dr. Jan Witthuhn Superintendent Mounds View School District #621 651-639-6001 C. PUBLIC FACILITY AND INFRASTRUCTURE PROJECTS When tax rebate assistance is being utilized to finance public facility and infrastructure projects, as opposed to those oriented toward private business and development objectives, the following process will be adhered to: 1. The EDA will recommend the preliminary use of tax rebate financing for a particular facility/infrastructure project. A formal application, deposit agreement, and application worksheet will not be required. 2. If preliminary approval is granted, all necessary notices, resolutions and certificates are prepared by city staff and/or consultants. 3. If necessary, public hearing(s) on the proposed project are held. 4. The EDA grants final approval or denial of the proposal. M.V. Tax Rebate Policy 9.22.03 Final 9 VIII. APPLICATION FOR TAX REBATE FINANCING A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following:  Brief description of the corporation/partnership’s business, including history, principal product or service. Attach as Exhibit A.  Brief description of the proposed project. Attach as Exhibit B.  List names of officers and shareholders/partners with more than ten percent (10.0%) interest in the corporation/partnership. Attach as Exhibit C.  A but-for analysis and narrative. Attach as Exhibit D. Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email M.V. Tax Rebate Policy 9.22.03 Final 10 B. PROJECT INFORMATION 1. The project will be: ____Mixed Use Development ____New Construction ____Rehabilitation/Expansion ____Commercial Development: ____New Construction ____Rehabilitation/Expansion ____Industrial Development: ____New Construction ____Rehabilitation/Expansion ____Housing/Other_____________: ____New Construction ____Rehabilitation/Expansion 2. In addition to the Mounds View EDA, applicant is requesting rebate funds from: __ Ramsey County School District 621 3. The project will be: ___Owner Occupied ____Leased Space  If leased space, please attach a list names and addresses of future lessees and indicate the status of commitments or lease agreements. Attach as Exhibit E. 4. Project Address  Include Legal Description and PID Number. Attach as Exhibit F 5. Site Plan Attached: ____ Yes ____ No 6. Total Rebate Requested: $ over years. City Rebate: Annual $ Total $ County Rebate: Annual $ Total $ ISD 621 Rebate: Annual $ Total $ 7. Current Market Value of Project Site: $ Estimated Market Value upon Completion: $ Current Real Estate Taxes on Project Site: $___________ Estimated Real Estate Taxes upon Completion: $ 8. Construction Start Date: Construction Completion Date: If Phased Project: Year % Completed Year % Completed C. PUBLIC PURPOSE It is the policy of the Mounds View EDA that the use of tax rebate financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. ___Job Creation/Retention: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created ___Industrial development resulting in additional private investment Enhancement and/or diversification of the city’s economic and tax base ___Removal of blight ___Provide housing opportunities ___Rehabilitation of a high profile or priority site ___Other: M.V. Tax Rebate Policy 9.22.03 Final D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Equity $ Fed. Grant/Loan $ State Grant/Loan $ Tax Rebate $ ID Bonds $ Other $ TOTAL $ USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ Other $ TOTAL $ 11 M.V. Tax Rebate Policy 9.22.03 Final 12 E. ADDITIONAL DOCUMENTATION AND CHECKLIST Applicants will also be required to provide the following documentation. ______ A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans _______B) Financial Statements for Past Three Years (if existing business) Profit & Loss Statement Balance Sheet _______C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date _______D) Two Year Financial Projections, inc. Profit & Loss, Balance Sheet, Cash Flow Statement. Please list assumptions, inc. estimated personnel levels and sales growth. _______E) Personal Financial Statements of all Major Shareholders with a 10.0% or greater ownership interest if “Up Front” Financing are Requested _______F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration _______G) Application fee of $1000 _______H) Itemized Project Construction Statement from contractor for projects over $500,000 _______I) Additional information that will be helpful in evaluating your application Note: All Major shareholders will be required to sign personal guarantees if up front financing of the project is required. The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the Mounds View Economic Development Authority to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the Authority after the filing of this application. Applicant Name Date By Its M.V. Tax Rebate Policy 9.22.03 Final 13 IX. Exhibits Attachment A: Application Fee Agreement Agreement for Evaluation of Tax Rebate Finance Assistance By and Between the Mounds View Economic Development Authority and (The Applicant) This agreement made as of the day of , 200_ by and between the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic, organized and existing under the laws of the State of Minnesota (the “EDA”) and (The Applicant). WITNESSETH: WHEREAS, the EDA has the powers provided in Minnesota Statutes, Sections 469.1812 to 469.1815, as amended (collectively, the “Act”); and WHEREAS, pursuant to and in furtherance of the objectives of the Act, the EDA has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View NOW THEREFORE, in consideration of a mutual covenants made herein and for other good and valuable consideration set forth in the Agreement, the parties agree as follows: Section 1. (The Applicant ) agrees to provide the EDA with an application fee of $1,000 for the preparation of legal documents and for EDA’s consultant(s) to investigate the feasibility of providing Tax Rebate Financing assistance to (The Applicant) for the redevelopment of the (the “Property”). If the EDA incurs additional expenses directly related to the feasibility of providing Tax Rebate Assistance to (The Applicant), or for professional or legal services beyond the $1,000, prior to the execution of the Developer’s Agreement, the EDA shall notify (The Applicant) in writing and (The Applicant) will be required to pay additional funds as a condition of the EDA entering into any such Development Agreement. Section 2. Regardless whether the project is approved by the EDA or not, the application fee is non-refundable. If (The Applicant) does not proceed with the redevelopment of the Property due to the decision of either the EDA or (The Applicant), the EDA shall reimburse the applicant for the unused portion of the deposit. M.V. Tax Rebate Policy 9.22.03 Final 14 Section 3. Nothing contained in this agreement shall in any way obligate either party to proceed with the redevelopment of the Property or otherwise enter into a Development Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY BY: ______________ ITS PRESIDENT BY: ______________ ITS EXECUTIVE DIRECTOR STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of ______ , 200_, by ___________ and ___________, the President and Executive Director respectively of the Mounds View Economic Development Authority named in the foregoing instrument. Notary Public M.V. Tax Rebate Policy 9.22.03 Final 15 (The Applicant) BY: ITS: STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of ___________ , 200_, by , the of (The Applicant) named in the foregoing instrument. Notary Public M.V. Tax Rebate Policy 9.22.03 Final 16 ATTACHMENT B: APPLICATION REVIEW WORKSHEET 1. The project meets the criteria set forth in Section V of the Tax Rebate Financing policy. (A through D must be checked) a) Meets at least one of the objectives in Section III. b) Conforms with one of the eligible uses defined in Section V. c) Demonstrates need for TAF with the but-for analysis. d) Consistent with all city plans and ordinances. 2. Ratio of Private to Public Investment in Project: Points: $ Private investment 5:1 5 $ Public Investment 4:1 4 Ratio Private : Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Job Creation in the City of Mounds View: Points: Number of net new jobs as a result of the project ≥25 5 or ≥20 4 Number of retained jobs ≥15 3 ≥10 2 Less than 10 1 4. Ratio of TRF to new jobs created or retained: Points: $ TRF request $ 8,000 or less 5 Number of new jobs created or retained $ 10,000 or less 4 $ TRF per new job created $ 12,000 or less 3 or retained $ 15,000 or less 2 Over $15,000 1 5. Wage Level of jobs created or retained: Points: Average hourly wage Over $21/ hour 5 of jobs created or retained: $18-21 / hour 4 $14-17 / hour 3 $ 9-13 / hour 2 Under $9 / hour 1 6. Project size: Points: The project will result in the construction 25,000 sq. ft+ 5 of net square feet 20,000+ 4 10,000+ 3 5,000+ 2 5,000 or less 1 M.V. Tax Rebate Policy 9.22.03 Final TO BE COMPLETED BY CITY STAFF 17 7. Type of Project: Points: 100% Owner Occupied 5 Mixed Owner Occupied & Investment 4 Investment Property 3 8. Use: Points: Industrial/Commercial 5 Warehouse/Distribution 4 Office /Housing 3 9. The project will pay annual Points: property taxes of $____________ $25,000+ 5 in the first fully assessed year $15,000+ 4 $10,000+ 3 $ 5,000+ 2 Under $ 5,000 1 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 9. Bonus Points Bonus Points: The project will be 100% pay-as-you-go TRF. 3 points The project contributes to County Hwy 10 Redevelopment 3 points The project results in substantial interior or exterior renovation 3 points The project will enhance the aesthetics of the surrounding area through high quality architectural and/or urban design 3 points Total Points: Overall project analysis: High 45-38 points Moderate 37-29 points Low 28-20 points Not Eligible 19-0 points M.V. Tax Rebate Policy 9.22.03 Final Sub - Total Points: of a possible 45 points. 18 ATTACHMENT C: SAMPLE BUT-FOR ANALYSIS WITH NO WITH TAX REBATE FINANCING TAX REBATE FINANCING SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,000 Tax Rebate Financing 0 933,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 300,000 300,000 Taxes 300,000 300,000 Finance Fees 700,000 700,000 Project Manager 502,000 502,000 Developer Fee 515,000 515,000 Contingency 250,000 250,000 Subtotal Admin./Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 288,061 Total Return on Equity 7.74% 12.00% M.V. Tax Rebate Policy 9.22.03 Final Item No: 02 Meeting Date: February 1, 2016 Type of Business: Work Session Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Review Citizen of the Year Nomination(s) Introduction: The City of Mounds View Citizen of the Year Award recognizes ordinary citizens who have demonstrated initiative to improving the community. Past recipients of this award include: 2004: David Jahnke 2005: Frank Silvis 2006: Ed Lanz 2007: Don Hodges 2008: Barbara Haake 2009: Diane Wuori 2010: Jean Miller 2011: Jerry Skelly 2012: Greg Belting 2013: Gary Stevenson 2014: Theresa Cermak Discussion: This award is currently scheduled to be awarded at the Monday, March 21, 2016, Town Hall Meeting, located at City Hall. If the award recipient cannot attend the Town Hall Meeting, then the City Council may consider presenting this award at a regular meeting. Deadline for submitting nominations: Friday, January 29, 2016. Below is the timeline for applications and City Council approval for your reference. Applications due to Assistant City Administrator: Friday, January 29, 2016 Applications to the City Council for Review: Monday, February 1, 2016 (WS) 2015 Citizen of the Year Awarded by City Council Resolution: Monday, February 8, 2016 (Council Meeting) 2015 Citizen of the Year Award Recipient Contacted: Tuesday, February 9, 2016 2015 Citizenship Award Plaque Ordered: Wednesday, February 10, 2016 2015 Citizenship Award Presented to Recipient: Monday, March 21, 2016 Recommendation: Staff will provide the City Council with the nominations during this meeting for discussion. Respectfully submitted, _______________________ Desaree Crane Item No: 3 Meeting Date: February 1, 2016 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Discuss Recruitment Process for Police Chief Position Introduction: On January 12, 2016, Police Chief Tom Kinney submitted his notice of retirement, effective April 29, 2016. Chief Kinney has been police chief since 2010, after serving as interim chief for a year. Chief Kinney has worked for the Mounds View Police Department for over thirty years and we are thankful for his service to the community. Discussion: Assuming that the City Council would like to advertise externally to fill this position, the following potential timeline could be employed: Feb 8, 2016: Council approves authorization to advertise position Feb 9, 2016: Job posting goes live on LMC page, our page and elsewhere Mar 4, 2016: Deadline to submit applications Mar 11, 2016: Applications reviewed and ranked Mar 25, 2016: Supplemental testing on top candidates Apr 1, 2016: Interview top candidates Apr 11, 2016: Background & psych testing on top 3 candidates April 18, 2016: Police Civil Service Commission creates eligibility list Apr 25, 2016: City Council approves hire of new Police Chief May 9, 2016: Start date of new Police Chief The dates can be compressed a bit to eliminate the gap between Chief Kinney’s last day and the new Chief's start date. (If an executive search firm were employed, the timeframe could be compressed further.) Recommendation: Review the attached job description, the minimum requirements and the draft recruitment timeline and provide direction to staff as to how the Council would like to proceed. Respectfully submitted, ________________________ James Ericson City Administrator 2015 City Council Priorities On February 10, 2015, the Mounds View City Council and members of the management team held a planning and goal-setting retreat at the Mounds View Community Center. The City of Mounds View provides a variety of core and essential services to its residents, property owners and business owners. Each of these service delivery areas is an acknowledged and supported priority and each supports the City’s Mission, Vision and Values statements. Recognizing that important services such as Code Enforcement, Street and Infrastructure Improvements, the Community Center, Parks, Public Safety, Sewer and Water delivery are ongoing priorities which strengthen and enhance the City’s livability and social fabric, the City Council has chosen to focus particular attention this year to the following identified priorities: • Consider targeted property acquisitions on a case-by-case basis to eliminate blight and to encourage redevelopment and land assembly; promote programs and opportunities to im prove neighborhoods • Actively recruit new businesses, encourage business development and work with existing businesses for purposes of retention and expansion • Focus on corridor maintenance, aesthetics, landscaping and appearance; pursue completion of corridor trailway segments and linkages to promote regional connectivity • Promote the redevelopment vision associated with Crossroad Pointe and pursue other redevelopment opportunities • Explore technology enhancements to expand access and availability to residents, businesses and City departments; provide for greater security in parks and City buildings • Implement renewable energy and energy efficiency improvements; pursue Green- Step City designation • Plan for the design and reconstruction of the Public Works maintenance facility. • Ensure Mounds View’s interests are protected and promoted relating to the TCAAP redevelopment • Investigate the feasibility and funding opportunities associated with a “Splash Pad”, and • Promote positive partnerships and outreach efforts between the Mounds View Police Department and the community it serves. The City Council considers the County Road 10 corridor to be a key component in the City’s ability to grow and prosper well into the future. A healthy and vibrant commercial corridor, easily accessible and aesthetically pleasing, will be Mounds View’s foundation upon which our other amenities will be strengthened and reinforced. Item No: 04 Meeting Date: February 1, 2016 Type of Business: Work Session Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Review Council/Staff Retreat Format and Expectations Introduction: The City Council and Department Heads annually meet to review and establish objectives, action steps and initiatives. The exercise, referred to as the “Council Retreat” allows for free flowing Council and management staff discussions in an informal environment for the purposes of goal setting and providing staff direction for the year. Discussion: From 2009 to 2013, the Council/Staff Retreats were self-facilitated, led by the Mayor and City Administrator. In 2014, the City Council opted to being in a facilitator (Springsted). In 2015, the City Council opted to have a self facilitated Retreat, which resulted in the attached goals being adopted. Staff would like direction on whether the City Council wants the Retreat to be self-facilitated or hire an outside facilitator. Recommendation: Unless the City Council feels a facilitator would be preferred, staff would recommend reviewing the attached draft agenda for the 2016 Council/Staff Retreat scheduled for Monday, February 29, 2016, located at the Mounds View Community Center. Respectfully submitted, _______________________ Desaree Crane CITY OF MOUNDS VIEW CITY COUNCIL / STAFF RETREAT AGENDA MOUNDS VIEW COMMUNITY CENTER Monday, February 29, 2016 6:00 p.m. – 9:00 p.m. 6:00 p.m. Food and Informal Discussion 6:15 p.m. Welcome – review expectations (Mayor) 6:30 p.m. Review 2015 City and Department Accomplishments (Dept Heads) 7:15 p.m. Review 2015 Council Goals and Priorities (City Administrator) 7:45 p.m. Discuss Potential Goals and Priorities for 2016 (City Council) 9:00 p.m. Retreat Conclusion Work Session Report Feb 1, 2016 Item #5 New ways to talk about your city; think about the nature of the city; gather community support. New sources of funding; allies. Find the heart of your city. We need to be emotional (LOVE your city) bearers. Usually 40% are unattached, 36% are neutral, 24% are attached. We need to connect with the 24% and get them to attract the other 76%. We all relate to "fixing potholes", the normal things that need to be done in the city. We also need to aspire for more art, creativity, beauty (BEAUTIFY HWY 10) Building a Lovable City Fun Interesting Convivial Comfortable Safe Functional Where in our city is the fun? (Splash pad) Bike friendly city is a loveable city. (Bike racks in front businesses) Walkable (We have the trails - connect to the library) A dog friendly city - dog owners walk their dogs, this provides a sense of safety because they are out walking thru the neighborhoods. It humanizes cities. (a small dog park?) Youth friendly (teens) - saying no to them now makes them want to leave. All ages club (thru the YMCA); SKATEBOARDING - still something they really care about. We are saying no to their culture. Love Notes: what is loveable small things we give to residents - they give back. make your city comfortable - sitting places, resting areas Public Art: Something to STOP and look at. (our new round about, the entrance of our city). Interactive art. Murals! (does our sign ordinance hinder this from happening?) One city did a paint by number mural where it allowed residents to get dirty and participate in creating a piece of art. Community gardens; once again growing in popularity. (maybe where the blue park use to be) Work Session Report Feb 1, 2016 Item #5 When the kids are happy, parents are happy = Splash Pad. It's ok to play. What are some Fun winter things we can do to get the community out (snow / ice sculptures, snowman building contest, ice skating party) In Greenville a high school student had an idea; he had made a small bronze statue of a mouse in art. He came to the city and said for $1200 he would make more of this little guys, put them around the city and create a mouse hunt that residents and visitors could participate in. The local businesses had passports that people could use to check off the ones they found. Value beyond $. What is the value of ugly? What is the cost of boring? We need to engage our residents that co-creators without adding any handcuffs we may have. Rainworks - art that shows up when it gets wet. (a product called AlwaysDry) A couple of people stenciled positive sayings on sidewalks in Seattle that only showed up when it was raining and dreary. Lip Dub - citizens lip sync to a song promoting their city. CTV does this?? Do during the Festival in the Park? It could go viral on YouTUbe. (check out Grand Rapids video on YouTube) An idea for the summer: a giant pillow fight in the park, everyone brings their own pillow, serve ice cream (donated by a business?). Co-creators: identify them bring together ask for their help amplify what they naturally do provide resources not necessarily money ask them to identify other co-creators expand the circle WOO THEM Culture of Philanthropy (check out Try Some Awesome - the Awesome Foundation) Breaking Some Rules: Sometimes art just happens. It gets done without asking permission from the city first. Sometimes we need to ask "How to let them get away with it. What was the goal." We are not talking about gang tagging, or destroying property. We are talking about turning a negative into a positive. City Legacies - we have the Mermaid. Could be go with the mouse idea and create Mermaids around town? Would the Mermaid help fund it? City Rituals and Traditions - What are ours? Try a little color. Get permission to paint those green boxes around town. Paint around the storm Work Session Report Feb 1, 2016 Item #5 drains; paint an intersection; paint the end of the sidewalks and trails. Embrace temporary, do something like close off a street and hold a street dance. Or close off Bronson by the MVCC, have people bring chairs and show a movie. "High Touch" young Entrepreneurs: we need to make our places feel special or like home. Never say never to their ideas. That's how small businesses pop up. (Brew pub, ice cream or donut shop, unique stores). Be better storytellers! What are our people doing? Tell their stories. Who Owns It Matters Community Foundation Grants - can we set this up Young Professionals efforts Press coverage City Permits - we have them, but don't let them hinder efforts Can we find a way to fund/encourage things like these ideas. Love Hurts - negative ideas visiual clutter (billboards powerlines empty buildings holes in the fabric of your community - fix what is most broken Beware the CAVE people (Citizens Against Virtually Everything) IGNORE THEM!!! Council Meetings - try some GOOD news. Have a good news only meeting during public input once a month. Make your Plan Visible - Create an artifact. A graphic recording of the event. Put up inside city hall or MVCC. Let the pictures tell the story. Marry the City - make it a "wedding" party. have the residents pledge to keep streets clean, walk more, etc. Makes them in a relationship together. Art Everywhere. sculptures and gardens, statues around town that people can take pictures with.special signs around town, sidewalks, storm drains, even the blades on the snowplows. Talent Attraction and Retention - make it an emotional appeal. Amenity RIch VS. Meaning RIch Work Session Report Feb 1, 2016 Item #5 Meaning: what milliniums are looking for. They want to be where their work seems to matter. They don't like cars much and are nervous about owning a home THE ONE TENTH OF 1 PERCENT SOLUTION FOR CITIES we all use the community who makes the CONTENT of the city CIVIC EXPERIMENTS AND FEAR OF FAILURE (competent and incompetent failure) learn from failure be risk takers TRY THINGS Chief Love Officer - (Civic Innovation Officer) Job is to make city more lovable, residents benefit, more citizen engagement. Can this be tied into our volunteer program? THE $500 CHALLENGE - put this in the Mounds View Matters. We put up 4 or 5 $500 grants. The challenge is this: If we gave you $500 what kind of FUN idea do you have for the city. It could be art, an activity, a sculpture.... IDEAS: Food Truck Day in the MVCC parking lot A cook off Decorate a lamp post Art on the Trail Geo caching Day Dinner on the street Kids day - where they run the city. (Kids from YMCA program?) Duck Race - in the creek? I have more examples that I will talk about at the meeting.