HomeMy WebLinkAbout04-25-1996 ECONOMIC DEVELOPMENT COMMISSION AGENDA
111 APRIL 25, 1996
6:00 P.M.
MOUNDS VIEW CITY HALL
COUNCIL CHAMBERS
1. CALL TO ORDER (p ', 10 P.M.
2. ROLL CALL (Present = P, Absent = A)
I/ Carlson Schmidt
✓ Goff 0V)Se,4\i` Welsch
Nelson ✓ Terhark
i Sjoberg ‘,/ Hankner (EDA Liaison)
Bennett (Staff) R
0:Dv' Ai V-Dil Ar‘
3. APPROVE EDC MINUTES �L �
IIIMarch 28, 1996
Action: Motion lef
Second er, '
Vote 1' O
4. SPECIAL BUSINESS
No Special Business
5. EDC BUSINESS
A. Remove tax increment policies for new/expanded development
in Mounds View from the table of the February 22, 1996
meeting
Action: Motion
Second Sc.76(
Vote J f
Aii Comments:
B. Consideration of Tax Increment Policies for new/expanded
development in Mounds View
•
Action: Motion
Second
Vote
Comments:
6. Report of Commissioners, Staff and EDA Liaison
7. ADJOURN 17-,00t) P.M.
Next Meeting May 23, 1996
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01,L490 c
ECONOMIC DEVELOPMENT COMMISSION AGENDA
APRIL 25, 1996
111) 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
• March 28, 1996
Action: Motion
Second
Vote
4. SPECIAL BUSINESS
No Special Business
5. EDC BUSINESS
A. Remove tax increment policies for new/expanded development
in Mounds View from the table of the February 22, 1996
meeting
Action: Motion
Second
Vote
Comments:
•
B. Consideration of Tax Increment Policies for new/expanded
development in Mounds View
Action: Motion
Second
Vote
Comments:
6. Report of Commissioners, Staff and EDA Liaison
7. ADJOURN P.M.
Next Meeting May 23, 1996
S
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting iy f� /
March 28, 1996
if
City of Mounds View, Council Chambers b # f
2401 Highway 10, Mounds View, MN 55112
1. Call to Order:
The meeting was called to order at 6:04 p.m. by Chairperson, Dan Nelson.
2. Roll Call:
Members present were as follows: Cindy Carlson, Rosemary Goff, Dan Nelson, Brian Sjoberg, Ron
Schmidt, Bev Terhark and Delane Welsch. In addition, Economic Development Coordinator Cathy
Bennett and EDA Alternate Liaison Gary Quick were present. EDA Liaison Sue Hankner was absent.
3. Approval Of Minutes:
Motion/Second: Carlson/Goff moved approval of Minutes of February 28, 1996 Meeting.
Motion Carried 7 ayes 0 nays
4. Special Business
Presentation Regarding Metro Transportation System: Mr. Randy Rosvold, Senior
Transportation Planner with the Metropolitan Council, gave an overview of the Metro
Transportation System and the specific services for the City of Mounds View. Mr. Rosvold
noted that there are five regular routes in the City. He presented members of the EDC with an
overview of the regular routes in Mounds View, the volume of passengers, the daily operating
expenses for this service and the subsidy that is provided by each passenger for the service.
Mr. Rosvold also discusses the special services such as Paratransit Service for the disabled and
senior population called Metro Mobility and the Rideshare service. In addition, a list of the
Sources of Funding for all of these services was given. Mr. Rosvold also gave an overview of
the process for changing routes within the metro area. The possibility of relocating a park and
ride location was discussed to bring more of the route onto Highway 10. Members of the EDC
suggested staff discuss this possibility with the owners of Moundsview Square to see if they
would like to have a park and ride located on their property.
5. A. Discuss Development Opportunities for 2625 Highway 10
Coordinator Bennett explained that she met with Mr. Rick Kuehlwein who is
interested in building a volleyball complex in Mounds View. The development was
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originally discussed for 2625 Highway 10 of which the City currently owns.
Commissioner Carlson gave a brief history of how the project was brought to the City
through discussion with a bank client who is also a developer. Mr. Kuehlwein gave an
overview of his proposal which includes constructing a facility to house four volleyball
courts with additional space for banquets, weights rooms, locker rooms, daycare41110
facilities, dance studio, sports medicine doctor offices, etc. Mr. Kuehlwein is a
consultant for the Minnesota Sports Federation and has been a volleyball coach and
scout for many years. He has done extensive research on the market and believes a
facility of this kind is very needed in the North Metro. In addition, Mr. Kuehlwein
discussed the possibility of entering into a joint venture with the City for the
redevelopment of the Bel-Rae Ballroom site for this facility plus space for City
Community Center activities. There was much discussion regarding the possible size
and financing options for such a venture and the use of tax increment financing for this
project was discussed.
Motion/Second: Nelson/Carlson moved to pursue the Bel-Rae site for the volleyball complex in
partnership with the City of Mounds View's Economic Development Authority and Mr.
Kuehlwein's group V.B. Diggs.
Motion Carried 7 ayes 0 nays
B. Consideration of Removing Tax Increment Policies for new/expanded
development in Mounds View from the table of February 22, 1996
It was decided to defer this item to the next agenda in April. No Action.
C. Consideration of Tax Increment Policies for new/expanded •
development in Mounds View
No Action. Move to April agenda.
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 8:00 p.m.
Respectfully Submitted,
!)-e/r/ LCi
Economic D-velopment Coordinator
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originally discussed for 2625 Highway 10 of which the City currently owns.
Commissioner Carlson gave a brief history of how the project was brought to the City
through discussion with a bank client who is also a developer. Mr. Kuehlwein gave an
overview of his proposal which includes constructing a facility to house four volleyball
courts with additional space for banquets, weights rooms, locker rooms, daycare
facilities, dance studio, sports medicine doctor offices, etc. Mr. Kuehlwein is a
consultant for the Minnesota Sports Federation and has been a volleyball coach and
scout for many years. He has done extensive research on the market and believes a
facility of this kind is very needed in the North Metro. In addition, Mr. Kuehlwein
discussed the possibility of entering into a joint venture with the City for the
redevelopment of the Bel-Rae Ballroom site for this facility plus space for City
Community Center activities. There was much discussion regarding the possible size
and financing options for such a venture and the use of tax increment financing for this
project was discussed.
Motion/Second: Nelson/Carlson moved to pursue the Bel-Rae site for the volleyball complex in
partnership with the City of Mounds View's Economic Development Authority and Mr.
Kuehlwein's group V.B. Diggs.
Motion Carried 7 ayes 0 nays
B. Consideration of Removing Tax Increment Policies for new/expanded
development in Mounds View from the table of February 22, 1996
It was decided to defer this item to the next agenda in April. No Action.
C. Consideration of Tax Increment Policies for new/expanded
development in Mounds View 110
No Action. Move to April agenda.
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 8:00 p.m.
Respectfully Submitted,
l
Economic D velopment Coordinator
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Staff Memo
• To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: April 22, 1996
Agenda Item: Consideration of Tax Increment Policies for
(5.B.) new/expanded development in Mounds View
This item was tabled from the February 22nd meeting. We will focus entirely on the
discussion of the TIF Policy during the April meeting since the work plan for 1996
includes the development a Tax Increment Policy for new and expanding
developments for the EDA's consideration.
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 I
discussed by the EDA in relation to future TIF agreements specifically with the
IP Mounds View Business Park.
public policyto haveguidelines inplace so that developers are aware,
It is good p 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 May using the ideas generated from
this meeting. In addition, once a policy is drafted, we may want to call in private
developers and/or consultants to provide comment.
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)
II
RESOLUTION NO. 1848 3 r q �}
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
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 by the City Council of /--
the City of Mounds View that Resolution No. 1434 is hereby I
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 :
1 . Applicants. 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 1111
indebtedness.
c . The sources of income used to retire to the
indebtedness.
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RESOLUTION NO. 1848
Pace Two
d . Assumptions made in the preparation of the
feasibility report.
e . An annual cash flow. analysis showing total
income, expenditures , and reserves over the life
of the proposed indebtedness.
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 .
Provide for the 'fulfillment of a perceived• need
o€ -the C.ity'_s inhabitants.
1110
e . Compet—tion'---withexisting retail establishments
wi-ll = be discouraged:
f . Consistency with the City ComprehensivesPlan 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 permit's.
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
right to require cash deposit sufficient to cover °
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
. 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
City, its Councilmembers, officers, or agents, to the111
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
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 174-h day of December , 1984 •
ATTEST: l 7(_)//.124- : 2' .1-<2"
M a y 0F`
14 "/
( SEAL) /"
Clerdministratc} /
' MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
REQUEST FOR EDA CONSIDERATION
STA REPORT
• EDA ME~iLNG DATE May 9, 1994 (work Session)
EDA Action:
fE Special Order of Business Agenda Section: 2.
L Public Hearings
Report Number:
Consent A:zenda Report Date: 5-5-94
ui A Business
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Item Description:
Discussion Regarding Agreement on Future TIP Assistance :or
Business Park
Executive Director's Review/Recommendation:
- No comments to suppiement this report
- Comments ents attached
E xplanation,Sunin:ary (attach supplement sheets as necessary)
SUMMARY:
Jim O'Meara has drafted the attached Agreement for consideration by th=_
EDA Commissioners . It represents a non-binding agreement by which the EDA
4110 and Everest- will have agreed upon some broad guidelines for future tax
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
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
I 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. .
No action is requested other than discussion of the merits of or
I objections to such an agreement.
Samantha Orduno, Executive Director
RECOMMMEtiDATTON:
I
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Agreement
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 public development cQst� 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") within 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) S+1hile_build-out of the Business Park has proceeded,
there , remain-,oeseveral undeveloped . building sites (the
"Remaining Sites") within the- BusinesPark, 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 build-out 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 level and amount of
the tax increment assistance sought.
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263272.1
Agreement
41/1 •
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 public devel
opment cosh 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") within 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
4111 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 build-out 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
4111 determined that there is a need for the level and amount of
the tax increment assistance sought.
263272.1
(c) The assistance would be provided on a "pay aso
Y
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 City
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
facility for a company r 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
any such development. Any such assistance approved hereafter shall
be by separate written agreement, superseding this Agreement.
4111
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
4111
263272.1 2
December 1989 •
1111
TAX INCREMENT POLICY STATEMENT
The North Metro Mayors Association :believes that tax
increment�ng_.s the on, e.f-f.e.ct veting tool by which
local goviei....nxpent 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. .
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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:
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. "
TAX INCREMENT FINANCING POLICY
ELK RIVER, MINNESOTAe=7.
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 comprehensive in nature will he accepted. Fragwented
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 reasonably 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
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Preference shall only be given to those projects requesting Tax
Increment Financing assistance which meet or exceed the City's development
standards. These standards include building design, type of construction,
and extraordinary landscaping.
SECTION V- MAMMUM 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
hid u.strial/Man ufac Luring
Service Compa.nies/High Technology
Commercial •
Housing
Under extraordinary circumstances, the City Council reserves the
right to adjust the average subsidy level.
SECTION VI - 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 he 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 maybe 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 Len 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.
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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 111
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 Ilousing 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 Tax Increment Financing Request.
The City Council reserves the right to approve or reject each request.
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S
APPLICATION FOR TAX INCREMENT FINANCING
CITY OF ELK RIVER, MINNESOTA
411110
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 pagc(s).
Has applicant ever defaulted on any bond or mortgage
commitment? Yes No
If yes, provide details on separate pagc(s).
Does applicant have commitments for conventional financing for
the project? Yes No
Please list three financing references:
(Name/A dDress/ContactJPhone)
1111 Name and Address of applicant's legal counsel and accountant:
i r... ♦s i I LAS
PROPOSED PROJECT
Describe Project: _
Location:
Site Plan Attached: Yes No
Type 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 $
Equity $
SBA Loan
Revenue Bond $
• Tax Increment Financing $
Grant(s) $
Other $
TOTAL $
_ .
CONSTRUCTION AND DESIGN
111 Name and'address of architect, engineer and contractor for project;
Tare'et 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:
i
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.
IP
PLEASE ATTACH:
1. Site Plan Consistent with Submittal Requirements of the Building and Zoning
Department. 1111
2. Audited Financial Statements or Tax Returns from the Past Twu Years.
3. Current Financial. Staternc.nt:
4. 3-Year Pro Forma Analysis
5. Other Information Related to the Project
6. Application Fee
F!\finsnr.i\tsspt)]ey
�•c1 rte:
j C:1-4";�
/ CITY OF ROCHESTER, KENNESOTA
T riCRE ENT FINANCING APPLTCA?ION
4110b). ..\
�
1) APPLICANT INFORMATION
a) Business Name iliEliallammigim
b) Business Address
mnieffimffialmisimissims
c) Business Form (corporation, partnership, etc.)
Jilmjimmignummummimimammimmemimmimmommegima
d) Parent Organization (if any
e) Authorized Representative
Phone INIMINImmi
f) Names and Addresses of Major Stockholders or Principals
i)
ii)
iii)
• 2) BUSINESS DESCRIPTION
Give a brief narrative history of the business, including a description of nature of business
and principal products
3) BUSINESS PROFfLE
a) Are you located in the City of Rochester at this time?
Slag
b) Number of employees in Rochester (before and after proposed project)?
c) ppro mate annu a e .
9/Z d 0999 80990 'Oh/Ztr 60 'ZS/99 60 176 ,trZ '01 (NOIR) 9tr99-EGE-Z 19 'IllVd 'IS MEOW 2i SOOIlS NO d
d) Length of time in business?
•
e) Do you hate plants in other locations?
fl Are you engaged in intinationaJ trade?
4) FITTANCfq . HLSTORY/REFEREIVCFS
a) save you applied for convenrionaJ financing for the project? List st status and
ammummumi
b) Have you or any of the principals in the project ever filed for
bankruptcy?
c) Have you or any of the principals ever defaulted on a loam commitment?
MIS
d) Are you or any of the principals currently delinquent on
propel to the City of Rochester? property taxes for
e) List three financial references.
i)
ii)
iii)
5) DEME PMENT TEAM ZK ' RMATION
Names, addresses, telephone numbers, and contactera111
ans for firms providing consulting
services for the project. P
9/8 d 0999880998 'ON/EV :60 1S/99 :60 �6 ,bZ '01 (Non) 9b99-8ZZ-Zl9 Ill�d 'ZS N� �ONi SAOITiB 110112
a) ArchitecturalfEngineering
• b) Financial
c) Market Feasibility
d) Legal
allIMINIMM=111111111 .111111111,11•111111•11111
e) Other Property Management
• 6) INFORR 'HON CONCERNING APPLICANTS PROPOSED PROJECT rt de
attachment with information on the followinfl:
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 analysts of the project.
i) .tv arket feasibility analysis,
g) Site information (site plan, schematics, and narrative description of location, type
of development, and scope and size of the project).
41) h) Planning and zoning analysis - Does the project conform to the current zoning?
Are any variances needed? If so, please identify and explain. g
9/V d 0969880998 'OIC/Z17:60 'ZS/99 '60 176 ,17E '0i (NOW) 9V99-EEE-E19 'Mid 'ZS NVOEOW SODIEE YiOau
i) Schedule - Developer's target date for start and completion of the project.
7) INFORMATION CONCERNING THE NEED FOR THE REQUESTED PUBLIC
ASSLSTANCE
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 rhe project (number of new jobs created
or retained, increase in t_x base, other)?
8) APPLICATION FEE
If the Council provides preliminary approval of the project, the applicant will be required
ro provide an application fee of S3,000 to cover the City's cost for evaluating the proposal
and preparing the TIF 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.
4111
9/9 d 09;9E8099E 'ON/Z17:60 'ZS/99 :60 176 ,17E '0l (NOW) 9199-EEE-E19 ZflVd 'ZS NVD ONi SDD1 E N[Od,7
7
•
RESOLUTION NO. 93-4 e4jiL;''
AMENDING RESOLUTION NO. 92-3
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 has
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.
Resolution No. 93-4
Page 3 4111
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 inthe amount of $5 , 000. 00 from the applicant for the
city' s cons-ultants' 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 . 4110
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, President
ATTEST:
1111 (Lez<2._<,—
Susan P . Olesen, City Clerk
Attachment "A"
Attachment "B"
•
CITY OF BURNSVILLE
ECONOMIC DEVELOPMENT AUTHORITY
FUNDABILITY GUIDELINES
FOR
FINANCIAL ASSISTANCE
FOR
NAME OF APPLICANT
110
*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 .
11110 - 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 = $
+ EMPLOYEES SHOULD BE COMPUTED AS FULL-TIME EQUIVALENT
POSITIONS . THE TOTAL NUMBER ON THIS PAGE SHOULD EQUAL THE
TOTAL ON PAGE 2 .
- 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)
11/1 + 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
110 _ 6 _
FORM OF T. I . F . ASSISTANCE REQUESTED
POINT
VALUE
+ 1 BOND ISSUANCE
+ 5 PAY AS YOU GO
i
FUNDABILITY RATING
POINT VALUE DESCRIPTION
0 - 10 NOT HIGHLY FUNDABLE
•, 11 - 15 POTENTIALLY FUNDABLE
16 - 20 FUNDABLE
21 AND OVER HIGHLY FUNDABLE
- 10 -
ATTACHMENT "B"
REQUEST FOR TAX INCREMENT FINANCING
PROJECT:
1 . Business Name :
Address :
Telephone # :
Contact :
2 . Brief description of the business .
•
•
•
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 .
11111
Project (Cont. ) :
• 9 . Form of tax increment financing: Pay As You Go
or
Bond Issuance
10 . Name & Address of architect , engineer, and general
contractor.
_ ______
1111 .
11 . EstimaEed "real estate taxes on project site upon completion
of project . (Please show calculations . )
• 3
TAX INCREMENT FINANCING REQUEST:
3 . Please indicate how the project and use of T. I . r^. would meet
i
one or more of the following Burnsville Economic Development
goals ; creation of lobs that' rev wanes 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
Minutes of the Economic Development Commission
City of Mounds View
• Ramsey County, Minnesota
Regular Meeting
April 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 6:10 p.m. by Vice Chairperson, Cindy Carlson.
2. Roll Call:
Members present were as follows: Cindy Carlson, Rosemary Goff, Brian Sjoberg, Ron Schmidt and Bev
Terhark. In addition, Economic Development Coordinator Cathy Bennett, EDA Liaison Sue Hankner
and EDA Alternate Liaison Gary Quick were present. Members Dan Nelson and Delane Welsch was
absent.
3. Approval Of Minutes:
Motion/Second: Goff/Carlson moved approval of Minutes of March 28, 1996 Meeting.
• Motion Carried 5 ayes 0 nays
4. Special Business
There was no special business.
5. A. Remove tax increment policies for new/expanded development in Mounds
View from the table of the February 22, 1996 meeting
Motion/Second: Schmidt/Sjoberg moved to remove tax increment policies for new/expanded
development in Mounds View from the table of the February 22, 1996 meeting
Motion Carried 5 ayes 0 nays
1
B. Consideration of Tax Increment Policies for new/expanded
development in Mounds View
• The Commission members reviewed Mounds View's Tax Increment Policy from 1984 and
discussed Elk River, Robinsdale and Burnsville's current tax increment policies. Revisions were
made to Burnsville's plan to meet the needs of Mounds View. In addition, the commission
reviewed the fundability guidelines which is a ranking system for projects requesting tax
increment financing. The guideline provides an equitable point system in relation to jobs
created, increase in tax base, up front or pay-as-you-go assistance and type of development.
Also and application for tax increment financing was reviewed. Staff was directed to draft a
policy for Mounds View to be presented at the EDC meeting in May.
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 8:00 p.m.
Respectfully Submitted,
glQAA12-d-
111110 Economic De 1lopment Coordinator
a
2