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HomeMy WebLinkAbout02-22-1996 ECONOMIC DEVELOPMENT COMMISSION AGENDA . FEBRUARY 22, 1996 6:00 P.M. MOUNDS VIEW CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER 413b P.M. 2. ROLL CALL (Present = P, Absent = A) Carlson V/ Schmidt V Goff 0.1W-44 Welsch Nelson Terhark Sjoberg N oy Hankner (EDA Liaison) �/ Bennett (Staff) 3. APPROVE EDC MINUTES • January 25, 1996 Action: Motion G Second `i Vote y -0 4. SPECIAL BUSINESS A. Introduction of New Commission Members BevTerhark - Resident Representative BO Sjoberg - Business Representative 5. EDC BUSINESS A. Discussion and Prioritization of Highway 10 Redevelopment Properties Action: Motion C.C. Bim- Second C Vote C� 111 Comments: B. Consideration of Tax Increment Policies for new/expanded III development in Mounds View Q 4-jal - - ... Action: Motion 1-6/4-0(�, Second Vote Comments: // /C. Discussion of Transportation in Mounds View U p Action: Motion iii.....„.„. Second Vote Comments: D. Star City Process: SWOT Analysis III Action: Motion 1(34--/ . Second Vote Comments: 6. Report of Commissioners, Staff and EDA Liaison (6 7. ADJOURN P.M. Next Meeting March 28, 1996 • ECONOMIC DEVELOPMENT COMMISSION AGENDA • FEBRUARY 22, 1996 6:00 P.M. MOUNDS VIEW CITY HALL COUNCIL CHAMBERS 1 . CALL TO ORDER P.M. 2. ROLL CALL (Present = P, Absent = A) Carlson Schmidt Goff Welsch Nelson Terhark Sjoberg Hankner (EDA Liaison) Bennett (Staff) • 3. APPROVE EDC MINUTES January 25, 1996 Action: Motion Second Vote 4. SPECIAL BUSINESS A. Introduction of New Commission Members Bev Terhark - Resident Representative Brain Sjoberg - Business Representative 5. EDC BUSINESS A. Discussion and Prioritization of Highway 10 Redevelopment Properties Action: Motion Second • Vote Comments: A B. Consideration of Tax Increment Policies for new/expanded development in Mounds View Action: Motion • Second Vote Comments: C. Discussion of Transportation in Mounds View Action: Motion Second Vote Comments: D. Star City Process: SWOT Analysis Action: Motion 0 1111 Second Vote Comments: 6. Report of Commissioners, Staff and EDA Liaison 7. ADJOURN P.M. Next Meeting March 28, 1996 • Minutes of the Economic Development Commission City of Mounds View • Ramsey County, Minnesota Regular Meeting January 25, 1996 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. Call to Order: The meeting was called to order at 6:07 p.m. by Vice Chairperson, Dan Nelson. 2. Roll Call: Members present were as follows: Cindy Carlson, Dan Nelson, Rosemary Goff, Delane Welsch and Ron Schmidt. In addition, Economic Development Coordinator Cathy Bennett and Alternate EDA liaison Gary Quick were present. EDA Liaison Sue Hankner was absent. 3. Approval Of Minutes: Motion/Second: Welsch/Goff moved approval of Minutes of December 14, 1995 Meeting. Motion Carried 4 ayes 0 nays 4. Special Business There was no special business. 5. A. Consideration of Election of 1996 Chairperson and Vice Chairperson Member Carlson nominated Dan Nelson as Chairperson and Member Schmidt nominated Cindy Carlson as Vice Chairperson for 1996. Motion/Second: Welsch/Schmidt moved approval of Election of Dan Nelson as Chairperson and Cindy Carlson as Vice Chairperson. Motion Carried 5 ayes 0 nays B. Consideration of Resolution No. 96-EDC14 Accepting 1996 Bylaws Motion/Second: Welsch/Carlson moved approval of 1996 Bylaws. Motion Carried 5 ayes 0 nays • 1 C. Consideration of Resolution No. 96-EDC 13 Accepting the 1996 Calendar of Meetings Motion/Second: Goff/Nelson moved approval of the 1996 Calendar of Meetings. 110 Motion Carried 5 ayes 0 nays D. Consideration of 1996 EDC Work Plan. The EDC reviewed the status of the 1995 work plan, action steps in response to the business survey and the 1996 program objectives for economic development as outlined for the program/performance budget report. Each item was discussed in detail by the Commission. Revisions and additions were made per attachment A. Motion/Second: Nelson/Goff moved approval of the 1996 work plan per attachment A. Motion Carried 5 ayes 0 nays Reports From Chair, Commissioners and Staff: There were no reports. 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 7:25 p.m. Respectfully Submitted, • • Economic �, lopment Coordinator • • 2 4 Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Economic Development Coordinator Date: February 16, 1996 Agenda Item: Introduction of New EDC Members (Special Bus) Once again we have a full commission! We have recruited two very qualified representatives. I have attached a copy of their applications for your information. i i APPLICATION FOR ADVISORY GZGUPS 01 ) Group Applied For: S- r /„.,.,/ ,,,,,} /1 Second Choice ( i: any) : i - 1 - Full Name (print or type ) : Address : y fG��/ I I S� 5 Zi G'/ Z��� j )W, P11/V/ YZ7-r--) Years At This Address : Years You Have Lived In Mounds View: - /,; 7 1 Teleoclone: Ecme: Work or Other: QUALIFICATIONS YOU WANT TO HAVE THE COUNCIL CONSIDER Skills and res cs : � y/%� _ / % LG / e-/-e !Z? L _ .416-a-6- 6_;,=-/-6 1, l / � � ,, 7 E.-tploymeat, Occuo'ation or Other Exner' dace: • f kL:4 crSJ>iT= fT� /- C/” .' /c/Z'G- / C///my I i `i -/ 1--,/ „,--, . - 1111 _.;5--L__,F ":„--7;;;e/c/z-;- 4) z,-...s-/4-•z,.3--,C C....-/a '.-'-'/..".---7 e': A4- --' 7-74-- '/4 .c ;!emcersnips , Accomplishments Or Other Qualifications : Xlz-71-e'l'/ -'- 1---/2-e cptdr4 ,_ ,_, • ' /' ._ 7 _Ijk f_ (7(6 0 •L- ' 7 Please State Your Reasons For Wanting ng To Serve On This Comm? . / �/[ - -7--- 'e•-•-/--- it / ft i 'C) XCG C �/ C'r 4 . C ✓ L--'' - i- ; Your response to any of the above may. be continued on t^e back and you may attach' any ether materials which you want the Council to consider. Signa,turs�/� / , , :�- /L--- Cate I r % /G: /9 •, The C _`y of hound , View is committed to the :of_cy that all persons shall nave equal access to its or:gr_-ms , =ac ' mss , and employment without regard to race , creed , color, sex, ace , national origin , or handicap . FEB-05-96 MON 16 15 DYNEX FAX NO. 6127845397 P. 01/01 c 1 1 ( a;F l p- F4, - /.5--/ G jai° f t,1,;xrnv J :7lk($ e y i • AppLicAzzog FOR DV IEC ', GRCC_S - Grtup Anoz iet Far: • oeccnd C:cies ( ilt any) ; • I c!s_i Na to . (�r_z: cr tme) I s X-lkrj STO 6 rg 4 { dress f wog.K. 11 / sl img5TAN Ct /e_ li oaN35 VJ•e -' I. 1 .. •} /'1 Years AThts Address : vea-s ',--1.: 'a.- v4.. 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V j T` -' Ci.. v cE McLnds View is C^.,.—_tied _v the =clic7 that all t.e=zcr._ shall have ecual access tt its .rcg=rms, i=c__?: .e5 ant 71.7: c+T^e '- `./, r*:CUt V.-- -Pr.,:. . ra7^v t0 r zc c.r v'%c. , cc --, 52Y, cr ? T . - 1111 C- , D S • i Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Economic Development Coordinator Date: February 16,, 1996 Agenda Item: Discussion and Prioritization of Highway 10 (5.A) Redevelopment Properties The EDA will be prioritizing properties along Highway 10 for redevelopment. With limited resources, it will be very important to focus on those properties that will have the highest impact to the community and enhancement of Highway 10 Redevelopment efforts. It has been suggested that the EDC review these targeted properties and provide the EDA with input on what properties would have the most • impact to the community if they were redeveloped. I have provided background information on a list of properties in Mounds View. Please be prepared to ask questions and provide a priority list of at least the top five areas to focus in 1996. 11111 fl -x • In c\ es F" C, v� O N M \O O o ,--4 N 'l- CD to - N M N 0N 00 C\ CS Cn CO 01 00 00 4. N •71- C CN M ‹O C �; 00 M N N (n Ch In (� O N cn VO In O co M C� -+ �--- •-• 71' In M o = CC O O O M M tr)0 O O O �--1 4O O O M M0 O G1 tri C� v1 00 C\ C oo N d ' G1 N -� oo d O v :r • cip C•4 •1 O O O O O O O O O O 0 • M O d' oo l� ‹t O M O � -a N N N 7t• N .-. 00 •e rl �J 1 C) d- .-• 'T ) a" d" ' N Q .4_, cip C1 N M �O �O M N (-,i ) y�n �.J Vl d1 Ln d' M 00 ;-I M O O O O O O C O O O O O O 1� ,--, M M M M M M l C M N �t d '1 •-� M M M M M M M ..r N N N N N N N O O O O O O O M M M M M M M \p C 00 00 00 \UDC7 O O O O O O I O O " 2 O r... C73 0 (L)a� = • 0 cit ° .< CU (II '^.r U = O O `X ct v, .-- 1 i r-- , oo 71- d' M N ,--, r.. t` In M in M N N ,-. O O O O O O O� c" O O O M M 00 .- t-- -D M ,— r, aj O to M N N — 73 • .c7) a) o 0 0 ,r) (731 o a) 0 0 0 0 o - o o .D O 00 00 a OM O N N O d' M N - 771 0 (1) r"'. N t---- VD 01 00 G\ D\ t"-- e-. l"---- 717 VD N Cl N 00 o U 0 a) cz x CZ 7r- VD a, O in d. Cn 0 0 0 0 0 0 o c 0 0 0 0 0 0 0 0 w 0 d' 't.. 71-. d' N N N D o M M M M M M M til c Ooo" N N N N N N N N o 00 O O O O o O O O M M cn M c ) M M M D .D `v .0 co ao 00 Lo 0 0 0 0 ! o 0 0 II 0 ..., .t!: x U +-, C/] rcJ CZ o C.) r✓" r CZ e) o I * > CI) * 1 I) 0 Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Economic Development Coordinator Date: February 16, 1996 Agenda Item: Consideration of Tax Increment Policies for (5.B.) new/expanded development in Mounds View As part of the work plan for 1996, the EDC will develop a Tax Increment Policy for new and expanding developments. The last policy was approved in 1986. This policy did not include an application and/or job requirements. I have attached the 1986 policy, tax increment policies adopted by several other cities and the last staff report and draft policy that was discussed by the EDA in relation to future TIF agreements specifically with the Mounds View Business Park. . It is good public policy to have guidelines in place so that developers are aware, up front, what the desires of the community are in relation to providing assistance. Also, this allows everyone to be on the same playing field. At this point I would like to develop a framework for items to include in the policy and then I will draft a policy for your reveiw in March using the ideas generated from this meeting. Attachments: Resolution #1848 (3 pages) Staff Report 5-5-94 (3 pages) N.Metro Mayors TIF Policy Statement (1 page) Elk River (7 pages) Rochester (4 pages) Burnsville (12 pages) • RESOLUTION NO. 1848 3 r'4 ; ` CITY OF MOUNDS VIEW J COUNTY OF RAMSEY STATE OF MINNESOTA1111 RESOLUTION REPEALING RESOLUTION- NO. 1434 AND ESTABLISHING POLICY GUIDELINES FOR TAX INCREMENT FINANCING WHEREAS , Minnesota Statutes 273 . 71 to 273 . 78 permit the establishment of a Tax Increment Financing District for the purpose of financing redevelopment, housing , or economic development in municipalities through the use of tax increment generated from the captured assessed value in the tax increment financing district, and • WHEREAS , in some cases the- City may want to encourage certain projects by means of tax increment financing , and WHEREAS , it is the desire of the City to adopt policy guidelines relative to tax increment financing ; and WHEREAS , Resolution No . 1434 adopted on May 10 , 1982 set policy guidelines for Tax Increment Financing; and WHEREAS , it is the desire of the City Council to revise the guidelines established by Resolution No . 1434 . NOW, THEREFORE , BE IT RESOLVED b_v the City Council of the City of Mounds View that Resolution No . 1434 is hereby 1111 repealed . BE IT FURTHER RESOLVED: The following guidelines are established relating to the acceptance , consideration , and approval of applications for Tax Increment Financing assistance . However , applicants should understand that , notwithstanding observance of these guidelines , the City Council may in its sole judgement reject an application or that the City Council may in its sole judgement approve an application notwithstanding that one or more guidelines have not—been complied with : I . Applicant's will submit an economic feasibility report concerning the proposed Tax Increment Financing project to the City at least ten ( 10 ) working days prior to the Council meeting at which the applicant will seek preliminary Council approval . Said report shall contain the following information : . a. A narrative description of the proposal including a map showing the area to be involved in the Tax Increment Financing District. b . An analysis and description of the costs to be funded with Tax increment Financing and presented • in budget form including the proposed amounts of indebtedness . • c . The sources of income used to retire to the indebtedness. • RESOLUTION NO. 1848 Page Two- d . Assumptions made in the preparation of the - feasibility report. e . An annual cash flow analysis show, ng total income, expenditures, and reserves over the life of. the proposed indebtedness. 2 . The project must be one which might not -otherwise •be developed in the City in the absence of Tax Increment Financing funding . Desireability shall be measured • in terms of • a . Increased tax, base. b . Elimination or prevention of blight. • c . Development of marginal land . 7 . Provide for the - fulfillment of a perceived need 1111 of---the City ' s inhabitants. e . Competition with existing retail establishments will : be discouraged . f . Consistency with the City Comprehensive' Plan or • Zoning Code and other existing codes. 3 . The applicant shall deposit not less than S500 with the application to cover City administrative expenses which deposit is non-refundable . 4 . The City will not sponsor Tax Increment Financing for any proposal which requires rezoning or conditional use permits unless an intention to request such financing is communicated to the City prior to applying for such permits. • 5. The City reserves the right to employ legal , • accounting , appraisal , financial , and other • consultants to review the proposed project and its financing which shall. be paid by the applicant, whether or not the City agrees to finance the project or whether or not it is built. The City reserves the richt to require cash deposit sufficient to cover 4111 such costs . Any unexpended balance of such deposit shall be returned to the applicant if the project is aborted for any reason . If the project is approved, the City will allow said expenses to become part of the indebtedness costs, if financially feasible. RESOLUTION NO. 1848 Page Three 6 . The City will require that the applicant provide 4111 acceptable security to guarantee principal and interest payments of any tax increment obligation and which may be drawn upon by the City when revenues are not sufficient to meet debt service requirements. 7 . The applicant shall be required to complete the. project as presented and approved . from its own funds should the proceeds prove to be inadequate for the purpose . The applicant shall require a 100% performance bond of the building , electrical , mechanical , and other contractors guaranteeing completion of the building according to specifications and within agreed contract prices. 8 . The applicant, its agents , or underwriters shall hold harmless the City , its officers , consultants , and agents for any alleged or actual violation of any securities laws , state or federal , in connection with any indebtedness for the project. The City may require a surety bond to assure this "hold harmless" provision . 9. The City reserves the right to deny any application for any reason and to revoke approval of an application at any time without liability to the 4111 City, its Councilmembers , officers , or agents, to the applicant , the underwriter , attorneys , or other counsel associated with the. project. The City' s position is that no applicant has a right to have the City approve or finance any such project and in submitting such an application , the applicant recognizes and accepts that policy decision whether or not these guidelines are followed in other respects. 10 . The applicant shall have no right to assign any asserted "right or privilege" under- --any preliminary action by the City , its Council or adminitrative staff to any other person or firm. All applications will name the real parties in interest in the project. Adopted this _7t;-1 dayof �ecember 198.1 . g., ATTEST : tt Mayor i ( SEAL ) / /= � irk 410 Cler'Administrate / MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY REQUEST FOR EDA CONSIDERATION 4111 STAFF REPORT • EDA MEETING DATE May 9, 1994 (Work Session) EDA Action: ❑ Special Order of Business Agenda Section: 2. LI Public Hearings Report Number: E Consent ;agenda Report Date: 5-5-94 ❑ EDA Business • f (tent Description: Discussion Regarding Agreement on Future TIF Assistance tor Business Park Executive Director's Review/Recommendation: - No comments to supplement tins report - Comments attached Explanation/Summar! (attach supplement sheets as necessary) 1 SUMMARY: 4111 Jim O'Meara has drafted the attached Agreement for consideration by the EDA Commissioners . It represents a non-binding agreement by which the EDA and Everest will have agreed upon some broad guidelines for future tax I increment assistance for the completion of the Business Park. I The Agreement has been prepared only to represent a possible solution to the on/off, on/off discussions that have been held with Everest for the past year and a half regarding the level of TIF assistance (if any) that j the City (henceforth to be the EDA) would provide for projects within the ' Business Park. The Agreement sets forth some of the basics--that have been finalized in regards to the Agreements both with Hill and Multi-Tech and represents guidelines by which both the EDA and Everest may use in negotiating future developments . I I No action is requested other than discussion of the merits of or objections to such an agreement. i Samantha Orduno, Executive Director IIIRECO;tiMMENDaTION: 1 Agreement 4111 This Agreement is dated as of - , 1994 ; is by and between the Mounds View Economic Development Authority (the "EDA") and Everest Development, Ltd. , a Minnesota corporation (the "Developer") ; and provides as follows: 1. Recitals. (a) The City of Mounds View, Minnesota (the "City") , and the Developer have in recent years jointly cooperated in the development' of the Developer's Mounds View Business Park (the "Business Park") , with the City' s participation coming particularly in the form of tax increment assistance and bonding to defray certain •ublic dei - 1 ."e, related thereto_ (b) More particularly, the City established its Development District No. 2 , adopted the Development Program for the Development District, and established Tax Increment Financing District No. 1 (the "TIF District") hin the Development District, with the Business Park being within the Development District and the TIF District. The EDA represents that the City has transferred to the EDA the control and governance of the Development District, its Development Program, and the TIF District and its tax increment financing plan, and the EDA has subsequently incorporated all of the aforesaid into the EDA's Mounds View Economic Development Project. - (c) While build-out of the Business Park has proceeded, there remain,.., several undeveloped building sites (the "Remaining Sites") within the Business Park, and the EDA and the Developer desire to establish certain understandings as to the circumstances in which tax increment assistance may be appropriate to assist the development of such--sites-and the -final-buildout of the Business Park. 2 . Assistance Guidelines. The EDA hereby states its preliminary intention to approve tax increment financing assistance for development projects proposed and undertaken by the Developer on the Remaining Sites within the Business Park, subject to the following preliminary conditions: (a) The term of the tax increment assistance would be for a period between five and nine increment years, depending on demonstrated need, but in no event beyond the duration of the TIF District. (b) The Board of the EDA at the time shall have determined that there is a need for the leve_i the tax increment assistance sought. and amount of 263272.1 (c) The assistance would be provided on a "pay as you go" basis from 85% , (or other identified portion) of the tax increments generated by the particular project, with assistance amounts bearing simple interest at up to 7 . 00% per annum until paid, all subject to the limitation that the dity obtain enough tax increments from the TIF District as a whole to pay the debt service on the various general obligation bonds which have been sold to aid the development of the Business Park. (d) Each project so assisted shall be an owner-occu ied r facility for a company other user acceptable to the Board. (e) Design and construction plans for each new project be consistent with the standards heretofore established for the Business Park and otherwise acceptable to the Board. (f) Each proposed project be consistent with applicable law and receive all necessary approvals. This Agreement shall not constitute the commitment by the Developer with respect to the development of any of the Remaining Sites within the Business Park and shall not be interpreted as a final commitment of the EDA to provide tax increment assistance for 4111 any such development. Any such assistance approved hereafter shall be by separate written agreement, superseding this Agreement. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director EVEREST DEVELOPMENT LTD. , a Minnesota Corporation By Its President By • Its Chairman of the Board 263272.1 2 December 1989 • TAX INCREMENT POLICY STATEMENT The yo-rt Metro Mayors Association believes that tax increment ,,f aci„ns_js the orly Pt .a.t-ate—Ming tool by which local goyecm ent can preserve- and protect its •physical and economic development environment. It has been the essential ingredient in providing housing, carrying out redevelopment and encouraging economic development that would not have otherwise occurred. The Association understands that tax increment financing must be used efficiently and with appropriate restraint. In this regard, the Association adopts the following policy statement: Policy No. 1: Member cities of the North Metro Mayors Association intend to use tax increment financing for: 1111 o Creation of jobs, o Demonstrate public purpose, o Housing to benefit targeted groups, o Correction of significant soil or land problems, o Significant increase -in tax base, and o Redevelopment of existing blighted or substandard properties. Policy No. 2 : The Legislature has exhibited continuing concern that cities are utilizing tax increment financing to compete with each other for development. Cities of the North Metro Mayors Association will not knowingly engage in "bidding wars" with other member cities by deviating from existing policy on projects which are to be funded with tax increment. Member cities are committed to a pro-active attempt to avoid "bidding wars . " 02/16/96 09:58 $4417425 CITY/ELK RIVER Cj002 TAX INCREMENT FINANCING POLICY ELK RIVER, MINNESOTA 7pc? SECTION I - COMPREHENSIVE PLAN All requests for Tax Increment Financing shall be consistent with the City's Comprehensive Land Use Plan and its components. Only those requests that are com.prehe:nsive in nature will he accepted. Fre.gmented projects that exclude adjacent parcels will not be encouraged. SECTION II - DEMONSTRATED NEED The request for Tax Increment Financing assistance must demonstrate that the proposed development or redevelopment would not reasoneh1y be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of Tax Increment Financing is deemed necessary. SECTION III - QUALIFYING IMPROVEMENTS A request for Tax Increment Financing shall specify in detail the proposed uses of the Tax Increment Financing subsidy. Qualifying improvements may include but are not limited to site acquisition, land write down costs, site preparation, soil correction,. demolition., relocation costs, interest reduction costs, or the construction of public infrastructure. SECTION IV- EXTRAORDINARY DEVELOPMENT STANDARDS Preference shall only be given to those projects requesting Tax Increment Financing assistance which meet 01. exceed the City's development standards. These standards include building design, type of construction, and extraordinary landscaping. SECTION V - MAXIMUM SUBSIDY All requests for Tax Increment Financing shall he subject to a subsidy cap. The subsidy shall be based on a percentage of the project's finished market value (for tax purposes) as determined by the County Assessor. Except for redevelopment projects which may require more assistance than other projects, the average Tax Increment subsidy shall not exceed 15% of the project's finished value. The following projects shall be eligible for Tax Increment Financing: Redevelopment Tndustrial/ManufacLuring Service Companies/High Technology Commercial • Housing Under extraordinary circumstances, the City Council reserves the right to adjust the average subsidy level. UL/lb/ars uu:5y 254417425 CITY/ELK RIVER [joo3 SECTION VT -LEGISLATIVE RESTRICTIONS 1990 amendments to the Tax Increment Financing Act provide for a • reduction in state aid for cities that establish new Tax Increment Financing Districts after April 30, 1990. The state aid reduction will not directly affect the amount of Tax Increment, revenues. Rather, it will be a reduction in the amount of Local Government Aid (LGA) or Homestead and Agricultural Credit Aid (HACA). Because this penalty will affect municipal budgets through reductions in LGA and HACA, the City of Elk River will evaluate, in greater detail, how new projects and the penalty will adversely affect the community. The applicant will be advised by the City of Elk River as to'how the request for Tax Increment Financing will affect the City's loss in LGA. Thereafter, a decision to pursue a Tax Increment Financing request will he made by the applicant. SECTION VII - FINANCING THE QUALIFYING IMPROVEMENTS Qualifying improvements may be financed in a variety of ways. Tax Increment bonds issued to finance a qualified project may be either general obligation bonds or revenue bonds. General obligation.bonds are backed by the full faith and credit of the municipality and remain an obligation and a financial liability of the municipality as long as the bonds remain outstanding. To that end, the preferred option to finance the qualifying improvements is through a technique known as "pay-as-you-go." Under this financing method, the applicant is reimbursed for the costs incurred with the qualifying improvements over a series of years. The applicant recovers the costs over a series of years by providing evidence that real estate taxes have been paid in a timely fashion. Through this reimbursement method, the need to issue general obligation bonds is avoided, "Pay-as-you-go" financing requires no bonding and relics on an income stream generated by real estate taxes to reimburse the applicant for the qualified costs. SECTION VIII -APPLICATION FEE All persons and companies requesting Tax Increment Financing shall be required to pay a non-refundable application fee equal to ten percent (10%) of the tax increment requested up to a maximum fee of$5,000.00. This fee is intended to cover the City's legal, financial and administrative analysis of the request. S 02/16/96 09:59 $4417425 CITY/ELK RIVER 1004 SECTION IX- REVIEW OF APPLICATION Upon receipt of a completed Tax Increment Financing application, and upon payment of the application fee, the request for assistance shall be reviewed by a committee consisting of the City Administrator, Finance Director, Economic Development Coordinator, City Attorney and the Economic Development Consultant. A recommendation from the committee shall be made to the Economic Development Authority or the IIousing and Redevelopment Authority and this recommendation shall be forwarded to the City Council. Following a public hearing as required by Minnesota Statutes, the City Council shall approve or deny the Tac Increment Financing Request. The City Council reserves the right to approve or reject each request. • 02/16/96 09:59 $4417425 CITY/ELK RIVER 1 )005 APPLICATION FOR TAX INCREMENT FINAINCING CITY OF ELK RIVER, MINNESOTA S APPLICANT Business Name: Address: Telephone: Officers: Contact Person: Title: Business Form (Corporation, Partnership, Etc.): Years In Operation: Sales/Revenues: Brief Description of Business, Principal Products, etc: Has applicant ever filed for bankruptcy? Yes No If yes, provide details on separate page(s). Has applicant ever defaulted on any bond or mortgage commitment? Yes No If yes, provide details on separate page(s). Does app ica nt have commitments for conventional financing for the project? Yes No Please list three financing references: (Name/Address/C ontactJPb.on e) applicant's legal counsel and nocount,ant: 110 Name and Address of app ' g 02/16/96 10:00 $4417425 CITY/ELK RIVER 0006 PROPOSED PROJECT • Describe Project: Location: Site Plan Attached: Yes No Tape of Project: Commercial Industrial Residential New Construction Expansion Rehab JOB CREATION Current, Number of Employees: Current Payroll: Number of Jobs Created: __.__...__. ... Number of. Jobs Retained: _ Revised Payroll: PROJECT COSTS Land Acquisition: $ Site Development: $ Construction: Machinery & Equipment: $ .. Architectural and Engineering Fees $ Legal Fees $ interest During Const. $ Debt Service Reserve Contingencies $ TOTAL $ SOURCE OF FINANCING • Conventional Loan S Equity $ SBA Loan $ Revenue Bond $ Tax Increment Financing $ Grant(s) S Other $ - TOTAL $ 02/16/96 10:00 V4417425 CITY/ELK RIVER [ ]oo7 CONSTRUCTION AND DESIGN Name and address of architect, engineer and contractor for project: Target Dates: Start of Construction: Construction Completed: Finished Market Value of Project: $ STATEMENT OF PUBLIC PURPOSE Describe why the proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the foreseeable future and therefore the use of Tax Increment Financing is deemed necessary: { The undersigned, (a) (the) of applicant, hereby represents and warrants to the City that (he) (she) has carefully reviewed this application, and that the statements and information contained. herein and submitted herewith are accurate and complete to the best of the undersigned's knowledge and belief. Dated: Applicant By Its The City reserves the right to require additional information and supporting data from the applicant after the filing of this Application. 02/16/96 10:00 V4417425 CITY/ELK RIVER 2008 PLEASE ATTACH: • 1. Site Plan Consistent with Submittal Requirements of the Building and Zoning Department. 2. Audited Financial Statements or Tax Returns from the Past Twu Years. 3. Current. Financial.Sta ternent 4. 3-Year Pro Forma Analysis 5. Other Information Related to the Project 6. Application Fee • F°\.fi na n rr♦\taspol cy CITY OF ROCHESTER, MINNESOTA /-‘rC TAsl" L'NCRE.'VZ NT FL ANCJNG APPLICATION • j1) ___________APPLICANT INFORMATION a) Business Nasse b) Business AddresselliNalimmums c) Business Form (corporation, partnership, etc.) d) Parent Organization (if any e) Authorized Representative Phone f) Names and Addresses of Major Stockholders or Principals i) OIMIONinimmmanum ii) iii) 2) BUSINESS DESCRIPTION S Give a brief narrari:•e history of the business, including a description of nature of business and principal products 3) BUSINSESPROFTL,E a) Are you located in the City of Rochester at this time? allow b) Number of employees in Rochester (before and after proposed project)? c) pPte rna a annu a e . facaPXnacP 'nM 7+7 :�n -�sac :nf F 'nl l�l��fl c aa-}7?-7(a nn c �i ^NODI �n NE i ON d) Length of time in business? • e) Do you ha!b plants in other locations? Are you engaged in inteinational trade? l 4) AtsicrAI. HLSTORY/REFERENCES a) Have you applied for conventional financing for the project? List status details. and b) Have you or any of the principals in the project ever Fled for• bankru tc ?P Y c) Have you or any of the principals ever defaulted on a loan commitment? MIS d) Are you or any of the principals currently delin uenr property in the. City of Rochester? 9 on property taxes for a e) List three financial references. iii) 5) BEYE pmENT ?FAQ IN 'O rIATION Names, addresses, telephone numbers and contact persons for firms providing consulting services for the project. 1QCQ�QQQCr^ \i%7f7 F '�%QC ^n^ bF b7 (MOW) C!7QQ- '77 LIQ ?nvr MV1. 0W ?Q nT�T� �0.�UW a) Architectural/Engineering •b) Financial c) Market Feasibility d) Legal e) Other Property Management 6) INFORMATION CONCERNING APPLICANTS PROPOSED PROJECT (provide pry sde attachments with information on the foliowinyl: a) Narrative description of proposed project and proposed tenants if the facility will be leased (if known), b) Total cost breakdown of the proposed project. c) Amount of public assistance being requested and breakdown (land assembly, relocation, demolition, public improvements, utility relocation, street or alley vacation, etc.). d) Preliminary economic analysis showing existing taxes, future taxes, and source and use of funds. e) Pro forma analysis of the project. f) Market feasibility analysis, g) Site information (site plan, schematics, and narrative description of location, type of development, and scope and size of the project). h) Planning S and zoning analysis - Does the project conform to the current zoning? Are any variances needed? If so. please identify and explain. %h 1QCGp Qf1QCr 'n�(!7h fl ? /GC �fl t 77 'fl 1 (��(}ihi) C'?QQ_cc77_7 j O 77,-T MVTTO?N N girt 1Kg. WOuJ i) Schedule - Developer's target date for start and completion of the project. 7) INFORMATTQN CONCERN( G THE NEED FOR THE REQUESTED PUBLIC • ASSISTANCE a) Why is the public assistance needed? b) A letter indicating reasons why the project will not proceed without the public assistance. c) What public purpose will be served by the project (number of new jobs created or retained, increase in tax base, other)? 8) APPLICATION 1✓'EE If the Council provides preliminary approval of the project, the applicant will be required to provide an application fee of 53,000 to cover the City's cost for evaluating the proposal and preparing the TIE Plan or retaining consultants to analyze the proposal or to prepare the Development Program and Tax Increment Financing Plan, Any portion of the fee not used will be refunded to the applicant If warranted by the complexity of the proposal, additional deposits may be required. 11111/11/111111. 4111 0 4 09g3}909G0 'ON/r60 'IS/9c:60 b6 t T (NOW) ct7gg42Z—�!9 'Invd 'IS NVNOW SDUI:dS 'WO15. 410 RESOLUTION NO. 93-4 k. AMENDING RESOLUTION NO. 92-3 P CITY OF BURNSVILLE DAKOTA COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION ADOPTING TAX INCREMENT FINANCING POLICY FOR THE CITY OF BURNSVILLE Whereas, Minnesota Statutes, Section' s 469 . 174 through 469 . 179 (T. I . F. Act) , as amended, authorizes local government authorities to utilize Tax Increment Financingto assist development and redevelopment of certain parcels within its boundaries, and Whereas , the Burnsville Economic Development Authority (EDA) has three established Tax Increment Financing (T. I .F. ) districts- within the city, two adjacent redevelopment districts and one economic development district, and Whereas, the Burnsville Economic Development Authority has111 received applications for Tax Increment Financing assistance within existing districts, and Whereas, the Burnsville Economic Development Authority has received inquiries and requests for consideration of creating new Tax Increment Financing districts; Now, Therefore, Be It Resolved by the Burnsville Economic Development Authority that the following policy statement serve as a guideline for use of Tax Increment Financing in the City of Burnsville . GENERAL POLICY: While Tax Increment Financing is an important and useful tool in attracting and retaining business, it is essential that it is used appropriately to accomplish the city' s economic development goals and objectives . The fundamental principle which makes Tax increment Financing viable is that it is designed to encourage development which would not otherwise occur. The Burnsville Economic Development Authority is responsible to assure that the project would not occur "but for" the assistance provided through Tax Increment Financing. r • Resolution No . 93-4 Page 3 The standard guidelines for assistance is based on a Fundability Rating of 16-20 points (Fundable) , and will be 70% of the project' s annual increment X 5 (years) . The level of assistance provided with 11-15 points (Potentially Fundable) or 21 And Over points (Highly Fundable) will be evaluated on a case by case basis and may reflect an increase or decrease in assistance. In addition, evaluation of the subjective information provided may result in adjusting the amount of assistance provided. TYPES OF ASSISTANCE : Tax Increment Financing can be provided in two different forms . One form is "pay as you go" wherein the Burnsville Economic Development Authority compensates the applicant for a predetermined amount for a predetermined number of years . Annual payments are based on increment generated from the project and issued to the applicant after payment of property taxes by the applicant . The • Burnsville Economic Development Authority will give special consideration to applicants applying for "pay as you go" assistance . Another form is "up front" payment to the applicant wherein the Burnsville Economic Development Authority must issue revenue or general obligation bonds . The increment generated from the applicant' s project is then used for repayment of the bonds . APPLICATION FOR TAX INCREMENT FINANCING ASSISTANCE WITHIN EXISTING DISTRICT: The Burnsville Economic Development Authority shall require a deposit in_ the amount of $5 , 000 . 00 from the applicant for the city' s consultants' to investigate the feasibility of providing Tax Increment Financing assistance to the applicant . If the Economic Development Authority incurs additional expense beyond the $5 , 000 . 00 , prior to the execution of the Developer' s Agreement , the Economic Development Authority shall notify the applicant in writing and the applicant will be required to deposit additional funds . If the project is approved and the applicant proceeds with the project , the Economic Development Authority shall reimburse the applicant ' s deposit to the extent permissible under the T. I . F. Act . If the applicant does not proceed with the project, the Economic . Development Authority shall reimburse the applicant for the unused portion of the deposit . • Resolution No . 93-4 Page 5 B . Loss of Government Aid: Changes to Minnesota Statutes mandate a reduction in the LGA/HACA payments from the state to the city when new Tax Increment Financing districts are formed. In the • event a new Tax Increment Financing district is formed, the applicant shall be required to reimburse the city for such loss or reduction in state revenues . • Passed and duly adopted this 20th day of December, 1993 by the Burnsville Economic Development Authority. Daniel C. McElroy, Presid nt ATTEST : 4110 Susan P . Olesen, City Clerk Attachment "A" Attachment "B" S CITY OF BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY FUNDA13ILITY GUIDELINES FOR FINANCIAL ASSISTANCE FOR NAME OF APPLICANT • *NUMBER OF EMPLOYEES POINT VALUE NUMBER + 1 > 1 - 15 + 2 > 16 - 30 + 3 > 31 - 45 + 4 > 46 - 75 + 5 > 75 PLUS • CURRENT NUMBER OF EMPLOYEES ESTIMATED NEW EMPLOYEES (WITHIN NEXT 2 YEARS) TOTAL NUMBER OF CURRENT AND ESTIMATED NEW EMPLOYEES * EMPLOYEES SHOULD BE COMPUTED AS FULL-TIME EQUIVALENT POSITIONS . - 2 - • PAY LEVEL OF POSITIONS *TOTAL NO. WEIGHTED POINT DOLLAR OF DOLLAR VALUE WEIGHTING EMPLOYEES AMOUNT 0 $ 0 - 14, 999 $10, 000 $ (No. ) + 1 $15, 000 - 24, 999 $20, 000 $ (No. ) + 2 $25, 000 - 29, 999 $27, 500 $ (No. ) • + 3 $30, 000 - 44, 999 $37, 500 $ (No. ) + 4 $45, 000 - 59, 999 $52, 000 $ (No. ) + 5 $60 , 000 AND OVER $60, 000 (No. ) *TOTAL $ WEIGHTED AVERAGE = $ EQUIVALENT + EMPLOYEES SHOULD BE COMPUTED AS FULL-TIME E 4 POSITIONS . THE TOTAL NUMBER ON THIS PAGE SHOULD EQUAL THE TOTAL ON PAGE 2 . 1111 - 4 - . SIGNIFICANT IMPACT MULTIPLIER POINT VALUE TYPE OF DEVELOPMENT 0 RETAIL + 2 OFFICE + 3 OFFICE/SERVICE (50/50) + 3 VALUE ADDED (RETAIL WITH SIGNIFICANT SERVICE COMPONENT) + 4 INDUSTRIAL + 1 COMPANY/CORPORATE HEADQUARTERS - Location of upper management where strategic management decisions are made (add 1 point to above value) TOTAL POINT VALUE - 6 - 111 4111 FORM OF T . I . F . ASSISTANCE REQUESTED POINT 4110 VALUE + 1 BOND ISSUANCE + 5 PAY AS YOU GO 4110 - 8 i FUNDABILITY RATING POINT VALUE DESCRIPTION 0 - 10 NOT HIGHLY FUNDABLE 11 - 15 POTENTIALLY FUNDABLE • 16 - 20 FUNDABLE 21 AND OVER HIGHLY FUNDABLE - 10 - • 1111 ATTACHMENT "B" REQUEST FOR TAX INCREMENT FINANCING PROJECT: 1 . Business Name : Address : Telephone # : Contact : 2 . Brief description of the business . i 3 . Present ownership of the site : 4 . Present Project : Building square footage, size of property, description of buildings - materials, etc . Attach site plan, if available . i , Project (Cont. ) : 4111 9 . Form of tax increment financing: Pay As You Go or Bond Issuance 10 . Name & Address of architect, engineer, and general contractor. • 11 . EstimaEed -real estate taxes cn project site upon completion of project . (Please show calculations . ) 3 • TAX INCREMENT FINANCING REQUEST: 1111 3 . Please indicate how the project and use of T. I . F. would meet one or more of the following Burnsville Economic Development goals ; creation of jobs that pav wages adequate to support households, job retention, tax base expansion, development of the Southcross Corporate Center, conference center, fine dining, class "A" office, or corporate headquarters . 4 . Municipal Reference (if applicable) . Please name any other- municipalities wherein the applicant, or other corporations the applicant has been involved with, has completed developments within the last five years . • PLEASE COMPLETE THE "FUNDABILITY GUIDELINES FOR FINANCIAL ASSISTANCE" AND SUBMIT ALONG WITH THE REQUEST FOR TAX INCREMENT FINANCING. • 5 0 0 I 0 • Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Economic Development Coordinator Date: February 16, 1996 Agenda Item: Discussion of Transportation in Mounds View (5.C.) I have been researching the current transportation in Mounds View over the past month and have been trying to contact a representatives from the MET Council to discuss how bus routes are planned, the current routes and what is the dollar value of these routes to the City. Unfortunately, I have been trading calls with the transportation planner for a couple of weeks. Hopefully, I will have more information for you on Thursday. • There were 17 companies that expressed a need for better mass transit from the business survey. They include the Be1Rae, CTC Distribution Svs, Concepts in Upholstering, Dairy Quality Control, Garment Graphics, KFC, Mermaid, MultiTech, Omien Enterprises, Pink Flower, Sunrise Christian Daycare, Twin Cities School of Pet Grooming, Vicom, Everest Dev, Hyman Freightways, McDonalds and Sysco. I will discuss further findings at the meeting. 0 Staff Memo ill To: Economic Development Commission Members From: Cathy Bennett, Economic Development Coordinator Date: February 16, 1996 Agenda Item: Star City Process: SWOT Analysis (5.D.) One of the key components of the Star City report is the SWOT Analysis which is strengths, weaknesses, opportunities and threats to economic development in Mounds View. Even though this was touched upon in the Focus 2000 Visioning Process, I felt it would be advantageous to do an updated SWOT exercise with the EDC. Please make a list of those Strengths, Weaknesses, Opportunities and Threats regarding Mounds View and the surrounding area that would affect the future • economic development. 1111 1 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting February 22, 1996 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. Call to Order: The meeting was called to order at 6:30 p.m. by Vice Chairperson, Cindy Carlson. 2. Roll Call: Members present were as follows: Cindy Carlson, Rosemary Goff, Brian Sjoberg and Ron Schmidt. In addition, Economic Development Coordinator Cathy Bennett was present. Members Dan Nelson, Bev Terhark and Delane Welsch and EDA Liaison Sue Hankner were absent. 3. Approval Of Minutes: Motion/Second: Goff/Carlson moved approval of Minutes of January 25, 1996 Meeting. Motion Carried 4 ayes 0 nays 4. Special Business Introduction of new Commission Members: Vice Chairperson, Cindy Carlson welcomed new member Brian Sjoberg of Dynex Industries to the Commission. Ms. Carlson noted that she had spoken to new member Bev Terhark who regretfully was unable to attend the meeting due to a conflict. 5. A. Discuss Prioritization of Highway 10 Redevelopment Properties Coordinator Bennett explained that the EDA will be discussing the redevelopment of properties on Highway 10 at the upcoming work session in March and handed out a list of properties for the EDC's consideration. Coordinator Bennett noted that the EDC is being asked to evaluate current redevelopment opportunities and prioritize which properties would be most economically beneficial to apply existing staff time and funds to redevelop. After thorough discussion, the properties were put in two tiers. Tier one includes properties that have the most likelihood of materializing into projects and could economically benefit the City in the near future. Tier two are properties which pose constraints to redevelopment including legal and • 1 environmental constrains and current ownership resistance. The list of properties was revised to include projects in the tiered format. • The properties South of the Bel-Rae Ballroom were discussed. Coordinator Bennett explained that it has been proposed that the City purchase these properties to satisfy storm water runoff from the North West side of the City. The properties are currently almost exclusively wetland and therefore are virtually unbuildable in the current conditions. It have been proposed to use excess Tax Increment Funds for the purchase of this property. Members of the EDC do not support the use of TIF funds for this property since there will be no increase in jobs or the tax base for a water retention pond. The purchase of the Bel-Rae Ballroom for a community center was also discussed. The EDC felt that a thorough needs assessment should be completed to determine if services requested from the Focus 2000 process have been met through other area Centers and also an assessment of the long term costs of operating a community center should be identified prior to purchasing the building. Members of the EDC would prefer to use TIF funds for renovation of the building for a private party verses removing the property from the tax rolls. Motion/Second: Carlson/Goff moved approval of Prioritization of Highway 10 Properties into Tier 1 and Tier 2. Motion Carried 4 ayes 0 nays B. Consideration of Tax Increment Policies for new/expanded development • in Mounds View Motion/Second: Carlson/Schmidt moved to table this item until the meeting in March Motion Carried 4 ayes 0 nays C. Discussion of Transportation in Mounds View Coordinator Bennett presented the results of the business survey regarding those businesses that expressed a need for better mass transit. In addition, Coordinator Bennett gave an overview of her research regarding transportation over the past month and noted that she has been trading phone calls with the Senior Transportation Planner at the MET Council. Vice Chair Carlson suggested that the transportation planner be invited to speak to the EDC regarding transportation strategies in Mounds View. D. Star City Process: SWOT Analysis Coordinator Bennett outlined the benefits of SWOT exercise for the Star City Process. A SWOT exercise is identifying the Strengths,Weaknesses, Opportunities and Threats to economic development in the area. A list of the Strengths,Weaknesses, Opportunities and Threats was prepared by the EDC members. 2 Reports From Chair, Commissioners and Staff: • Vice Chair Carlson mentioned the reorganization of the New Brighton Area Chamber of Commerce and the Mounds View Business Association. After months of research through a task force made up of representative from both organizations, the New Brighton Area Chamber of Commerce Board voted to approve the addition of the City of Mounds View representation on the Board and change the name of the Chamber to the New Brighton/Mounds View Area Chamber of Commerce. 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:10 p.m. Respectfully Submitted, eajati.64•vri141--- Economic Development Coordinator • • 3