HomeMy WebLinkAbout04-27-2000ECONOMIC DEVELOPMENT COMMISSION AGENDA
April 27th 2000
7:30 A.M.
MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS
1. CALL TO ORDER
2. ROLL CALL (Present = P, Absent = A)
Belting
Carlson
Field
Mart
Y
3. APPROVE EDC MINUTES
February 24th, 2000
Action: Motion
Second
Vote
4. SPECIAL BUSINESS
A. Election of Vice President
Walther
Coughlin (EDA Liaison)
Jopke (Staff)
Parrish (Staff)
5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON
A. Commissioner and EDA Liaison Reports — No Materials Attached
B. NB—MV Chamber of Commerce Update — No Materials Attached
C. NB—MV Chamber of Commerce Charitable Giving Request
D. Highway 10 Issues
E. Project Updates
F. May 15th Business Lunch
6. EDC BUSINESS
A. Options for 2901 Highway 10
B. Tax Increment Finance Policy Revisions
7. ADJOURN
A.M.
Next Regularly Scheduled Meeting: May 25th, 2000 at 7;30 A.M
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Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
February 24th, 2000
City of Mounds View, Council Chambers
2401 Highway 10, Mounds View, MN 55112
Call to Order:
The meeting was called to order at 7:35 A.M. by Chairperson Tom Field.
2. Roll Call:
Members Present: Dr. Greg Belting, Cindy Carlson (Arrived Late), Tom Field, Rosemary Goff,
Julie Olsen, Sean Walther, and EDA Liaison Dan Coughlin.
Members Absent: Wendy Marty
Staff Present: Economic Development Coordinator Aaron Parrish.
3. Approval Of Minutes:
Motion/Second: Walther/Goff moved to approve the minutes from January 20th, 2000.
Motion Carried: 5 Ayes 0 Nays
Commissioner Carlson was not present at this time.
4. Special Business
Dr. Greg Belting was welcomed to the Commission and subsequently took the Oath of Office
5. EDC BUSINESS
A. Adopt 2000 Bylaws
Motion/Second: Goff/Walther moved to approve the bylaws as presented
Motion Carried 5 ayes 0 nays
Commissioner Carlson was not present at this time.
B. Develop and adopt a "2000 Work Plan"
In the past, work plans have been developed to guide the work of the economic development
commission After reviewing and modifying components of past work plans and a preliminary
2000 Work Plan, a plan was developed to reflect the present direction of the Commission.
After modifying the prelimnary "2000 Work Plan," the following motion was advanced:
- N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\February.doc
Motion/Second: Carlson/Goff moved to adopt the 2000 Work Plan as amended.
Motion Carried 6 ayes 0 nays
C. Business Subsidy Policy
The "1999 Business Subsidies Law" (Minnesota Statutes § I I6J.993 through § 116J.995)
requires cormnunities to develop and adopt a business subsidy policy for all subsidies/incentives
granted after August 1", 1999. In accordance with this legislation, communities granting
incentives are required to pass a "Business Subsidy Policy" to assist in the development of
"Business Subsidy Agreements." After discussion of the issue, Commissioner Olsen moved to
table discussion of the "Business Subsidy Policy" to a future meeting. There being no
second, the motion was not acted upon. The following motion was presented and seconded:
Motion/Second: Carlson/Walther moved to adopt the "Business Subsidy Policy" as
presented.
Motion Carried 5 ayes 1 nay
Commissioner Olsen's dissent was based on a variety of factors including: policy's lack of
conformity with enabling legislation, inadequate information on which to make a decision, and
the broad nature of the policy as constructed.
6. Reports From Chair, Commissioners and Staff:
A. Coordinator Parrish announced that a Commission Appreciation Dinner will take place at
approximately 6:00 p.m., March 2nd at the Mounds View Community Center. More details
will follow.
B. Coordinator Parrish announced that the City has received several inquiries from the
Minnesota Office of the State Auditor regarding the use of tax increment finance.
Additional information will be disseminated as it becomes available.
Adjournment
There being no further business before the Commission, this meeting of the Economic
Development Commission adjourned at 8:43 a.m.
Respectfully Submitted,
Aaron Parrish
Economic Development Coordinator
�' N:\DATA\GROUPS\ECONDEV\EDC\MINUTES\MIN00\FEBRUARYDOC
Item NoAA
Meeting Date: April 27th, 2000
Type of Business: SB
EB: EDC Business
IN: Informational Item
SB: Special Business
City of Mounds View Staff Report
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Election of Vice President
Date of Report: April 20, 2000
Background
City Code Chapter 408.07, subd. 1 provides that at the first regular meeting of the year, the EDC
shall appoint a chair, a vice -chair and "such other [officers] as" needed, subj ect to EDA approval. In
light of the removal of former Vice Chair Julie Olsen from the Commission, it is necessary to
appoint a new Vice Chair.
Necessary Actions
Elect a Vice -Chair subject to the approval of the Economic Development Authority.
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
N.\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Staf(00\04-4A.doc
Item No. 5C
Staff Report No.
Meeting Date: April 27`h, 2000
Type of Business: IN
EB: EDC Business
IN: Informational Item
SB: Special Business
of Mounds View Staff
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Chamber of Commerce Charitable Grant Request
Date of Report: April 20, 2000
Background:
Through the New Brighton—Mounds View Area Chamber of Commerce's Charitable Giving
program, the Chamber donates money to various non-profit groups and charitable organizations.
Accordingly, we have requested and received $3500 to fund a "Mounds View Economic
Development Project."
The funding will support two collaborative efforts between the City of Mounds View and the
Chamber of Commerce. First, funds will be utilized for an intern that will provide services to both
the City and the Chamber. From an organizational perspective, the intern will be under the
supervision of the Chamber. However, the intern will complete projects helpful to community
economic development efforts. The intern's primary project will include an update of the City's
business database. From a financial perspective, the City would be the fiscal agent for the
funds, and then would subsequently contract with the Chamber to pay the intern's wages.
Second, funds will be used to develop marketing materials to promote economic development in
Mounds View. In the past, The City of New Brighton has received funding to purchase glossy
folders used for business attraction and retention purposes. It is anticipated that marketing
funds would be spent in a similar manner.
Necessary Actions:
No action necessary
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Staff00\04-5C.doc
Item No. 5D
Meeting Date: April 27th, 2000
Type of Business: IN
EB: EDC Business
IN: Informational Item
SB: Special Business
of Mounds View Staff Report
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Highway 10 Issues
Date of Report: April 14, 2000
Background:
As discussed in previous reports, the Economic Development Authority approved funding for a study
to be completed by Springsted Public Finance Advisors. The work plan for this study includes
meeting with elected officials and city staff and the facilitation of two community workshops/forums.
In the initial stages of planning, the possibility of a joint Economic Development, Park, and Planning
Commission meeting was discussed. However, it was decided that a Committee be established in
lieu of joint meeting. This Committee will plan and direct the work of the Consultant in preparation
for the two community workshops. The three individuals representing the Economic Development
Commission are:
1. Chairperson Tom Field
2. Commissioner Sean Walther
3. Commissioner Greg Belting
It is anticipated that the community workshops will take place in May. Further information will be
provided as it becomes available.
Necessary Actions:
None
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
` N:\DATA\GROUPS\ECONDEV\EDC\StafTReports\Stat100\04-5D.doc
Item No. 5E
Staff Report No.
Meeting Date: April 27`h, 2000
Type of Business: IN
EB: EDC Business
IN: Informational Item
SB: Special Business
City of Mounds View Staff
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Project Updates
Date of Report: April 19, 2000
Background:
Mermaid Hotel and Banquet Center
There have been some recent developments pertaining to the Mermaid Hotel and Banquet Center
project. Based on information provided by the Hall's Attorney, arrangements have been made to
incorporate two adjacent properties into the development. First, the relatively small, but key parcel
south of the business park has been acquired. As a component of that acquisition, the access to the
business park will be moved to the west, toward the existing Pettibone site. Second, the Hall's have
an option on the property to the Northwest, or the existing Perkins site. While there has been no
definitive report, it appears as if Perkins will be closing sometime later this year.
At this point, an appl'ucation for TIF assistance has been requested. In addition, we anticipate
receiving approval this month regarding a Final Site Drainage Plan for a regional storm water pond.
Our permit application will be considered by the Rice Creek Watershed District Board of Managers at
their April 26th meetin ji.
The storm water pond would be located on property owned by the school district and Metropolitan
Council Environmental Services. Based on preliminary discussions with the aforementioned groups,
constructing a pond at this location appears to be a viable option. Additional information will be
provided as it becomes available.
TOLD Development -Walgreens
We anticipate receiving plans for a Walgreens at the intersection of Highway 10 and Edgewood
Drive in the near future. Depending on the approval process and the transfer of land between the
city and developer, the project could begin as soon as this year. The potential also exists for a
"Culver's" restaurant to be incorporated into the development. Photocopies of a Culver's menu and
pictures have been included for your review.
Necessary Actions:
No action is required.
Aaron Parrish, Economic Development Coordinator
(763)717-4029
N:\DATA\OROUPS\ECONDEV\EDC\Staff Reports\Staff00\04-5E.doc
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Item No. 5F
Staff Report No.
Meeting Date: April 27th, 2000
Type of Business: IN
EB: EDC Business
IN: Informational Item
SB: Special Business
of Mounds View Staff
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: May 15th Business Luncheon
Date of Report: April 19, 2000
Background:
Mayor Dan Coughlin, in conjunction with the New Brighton — Mounds View Area Chamber of
Commerce, will host a luncheon/meeting with Mounds View businesses. The luncheon will take
place at Mounds View City Hall in Council Chambers on Monday, May 15th at 12:00. Additional
information will be provided as it becomes available.
Necessary Actions:
Attend luncheon if so inclined. No official action is required.
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Stati00\04-5F.doc
Item No. 6A
Meeting Date: April 27th, 2000
Type of Business: EB
EB: EDC Business
IN: Informational Item
of Mounds View Staff Report
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Options for 2901 Highway 10
Date of Report: April 14, 2000
Background:
At the last EDC meeting an inquiry was made regarding the status of, and potential options for 2901
Highway 10, or the former Kunz Oil property. Subsequent to the EDC's February meeting, the EDA
has provided direction to the EDC to examine potential options for redevelopment of the site.
The comprehensive plan calls for the property to be incorporated into a larger mixed-use planned
unit development. However, this does not address the current issues associated with the property.
Accordingly, three options have been developed to address existing redevelopment needs. These
options include:
Option #1: Purchase the Site
The site is currently being offered for sale. After contacting the broker for the property, Briggs
Savignac of Sunbelt Business Brokers, he indicated that the asking price was approximately
$175,000. Beyond the expense associated with this option, additional limiting factors include the
site's proximity to a residential area, limited development potential, and size (.7 acres). Given the
aforementioned considerations, Option 1 may not be the best use of limited resources.
Option #2: Code Enforcement
Given the existing condition of the property, code enforcement exists as a potential option to address
the issues associated with the property. The following portion of the city nuisance code would apply
in this situation:
607.04: SPECIAL PROVISIONS, BUILDING MAINTENANCE AND APPEARANCE.
Subd. 1. Declaration Of Nuisance: Buildings, fences, and other structures which have been so poorly
maintained that their physical condition and appearance detract from the surrounding neighborhood are
declared to be public nuisances because they: a) are unsightly, b) decrease adjoining landowners' and
occupants' enjoyment of their property and neighborhood, and c) adversely affect property values and
neighborhood pattern.
Subd. 2. Standards: Any building, fence, or other structure is a public nuisance if it does not comply with the
following requirements:
a. No part of any exterior surface shall have deterioration, holes, breaks, gaps, loose or rotting boards or
timbers.
City of Mounds View Staff Report
April 14, 2000
Page 2
b. Every exterior surface which has had a surface finish such as paint applied shall be maintained to avoid
noticeable deterioration of the finish. No wall or other exterior surface shall have peeling, cracked, chipped or
otherwise deteriorated surface finish on more than twenty percent (20%) of.,
(1) Any one wall or other flat surface, or
(2) All door and window moldings, eaves, gutters, and similar projections on any one side or surface.
c. All wires which are strung less than fiReen feet (15) above the surface of any public street or alley.
d. All exterior doors and shutters shall be hung properly and have an operable mechanism to keep them
securely shut or in place.
e. All cornices, moldings, lintels, bay or dormer windows, and similar projections shall be kept in good repair
and free from cracks and defects which make them hazardous or unsightly.
f. Roof surfaces shall be tight and have no defects which admit water. All roof drainage systems shall be
secured and hung properly.
g. Chimneys, antennas, air vents, and other similar projections shall be structurally sound and in good repair.
Such projections shall be secured properly, where applicable, to an exterior wall or exterior roof.
h. All foundations shall be structurally sound and in good repair. (Ord. 556, 3-20-95)
Initially, the code enforcement approach would only require staff time to document the code
violations present on the property. However, significant staff time may be required if the matter
(" proceeds through the courts. The adversarial nature of code enforcement may also create animosity
t between the City and the property owner.
Option #3: Demolition Assistance
Option #3 parallels Mounds View's Housing Replacement Program. In this instance, the EDAwould
provide the property cwner with demolition assistance. The current properly owner would retain
ownership, but the existing structure would be demolished leaving the lot vacant. Based on past
experience with the Housing Replacement Program, it is expected that demolition costs would be
approximately eight thousand dollars.
From a financial perspective, it is anticipated that TIF dollars allocated for Highway 10
Redevelopment would be utilized in Options #1 and #3.
Necessary Actions:
Recommend a course of action to the EDA
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
N:\DATA\GROTJPS\ECONEEVTDC\Staff Reports\Staff00\04-6A.doo
Item No. 6B
Meeting Date: April 27th, 2000
Type of Business: EB
EB: EDC Business
IN: Informational Item
City of Mounds View Staff Report
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Tax Increment Finance Policy Revisions
Date of Report: April 14, 2000
Background:
Back in August, the Economic Development Authority discussed the City's TIF Policy on a general
level, and more specifically, they discussed the decertification of particular parcels within existing
districts. Before any action was taken, the EDA directed the EDC to examine our TIF Policy as it
relates to the aforementioned matters.
Attached you will find proposed revisions to the existing TIF policy and associated documents.
There are no proposed changes for the first five sections of the policy. The following highlights
proposed changes/additions for the remainder of the policy.
• A section entitled `Administration, Pooled Funds, and Parcel Decertification" has been added to
the policy. Since this section is being added, there are several issues that require discussion.
This section has been italicized for your reference.
• The section entitled `Application Process" has been expanded to incorporate additional detail.
• Attachment A `Application for Tax Increment Financing" has been updated, but it is not
significantly different than the existing application.
• There is only one modification associated with Attachment B `Deposit Agreement for Evaluation
of Tax Increment Assistance." In essence, the deposit fee would be raised from $1,000 to
$5,000. This is comparable to what other communities are currently requiring.
• In the past, the methods used by the City of Elk River and St. Louis Park for evaluating TIF
projects have been held up as models. Attachment C "Tax Increment Financing Proposal
Review Worksheet" essentially adopts Elk River's criteria for evaluating TIF projects. However,
there are some slight modifications based on differing community goals and objectives.
Necessary Actions:
Review, modify, and subsequently recommend changes to the Economic Development Authority
regarding the attached TIF Policy
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
City of Mounds View Economic Development Authority
Tax Increment Financing
Policy & Application
Adopted: 5/12/97
Revised: ,2000
�7� e
i
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
Tax Increment Policy
Mounds View Economic Development Authority
Mounds View, Minnesota
GENERAL POLICY:
The Mounds View Economic Development Authority has the powers under the
Minnesota Statute Sections 469.124 through 469.137 and sections 469.001 through
469.047 to govern and monitor the use of tax increment financing for Mounds
View's tax increment districts and the Mounds View development district which
encompasses the entire boundaries of the City of Mounds View. It is the
responsibility of the Mounds View Economic Development Authority to use.tax
increment financing as a tool to accomplish the City's economic development and
redevelopment goals and objectives. The Mounds View Economic Development
Authority understands and abides by the fundamental principal which makes tax
increment financing viable to encourage development and redevelopment which
would otherwise not occur.
The Mounds View Economic Development Authority shall tax increment financing
in cases that serve to accomplish the City's development goals and activities as
hereby defined in projects eligible for tax increment financing.
PROJECTS ELIGIBLE FOR TAX INCREMENT FINANCING:
Projects eligible for consideration of Tax Increment Financing assistance per the
Mounds View Development Project Plan dated May 9, 1994 include, but are not
limited to (1) the attraction, retention, rehabilitation and preservation of
commercial, industrial, retail, residential, recreational and public service facilities;
(2) new and rehabilitated public infrastructure; (3) community and other public
service centers; (4) senior/mature adult and/or other housing development
partnerships or other multi -use housings projects and facilities; (5) other public
utilities (including telecommunications); (6) business incubator loan and other
business programs; and (7) transportation systems. More emphasis will be placed
on those items which increase the tax base, eliminate blight, and the meet the City's
economic and redevelopment goals.
COSTS ELIGIBLE FOR TAX INCREMENT FINANCING:
Project costs qualifying for Tax Increment Financing assistance, as defined under
the TIF Act, include utilities design, architectural and engineering fees directly
attributable to site work, site related permits, earthwork/excavation, soils
correction, landscaping, utilities (sanitary sewer, storm sewer, and water), streets
and roads, street/parking lot paving, street/parking lot lights, curb and gutter,
sidewalks, land acquisition, special assessment, legal (relating to acquisition,
financing, and closing fees), soils tests and environmental studies, surveys, park
dedication fee, SAC, WAC, charges, titles insurance and TIF application deposit.
N:\DATA\GROtTPS\ECONDEV\TIF\Policy.DOC
DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT:
Within TIF Districts
The amount of Tax Increment Financing provided to an applicant will be based, in
part, on the analysis of information provided on the application for Tax Increment
Financing assistance (Attachment 'W'), amount of increment generated by the
project as evaluated by the City's Financial and/or Bond Counsel and the City's
economic and redevelopment goals.
The level of assistance provided will be evaluated on a case by case basis and may
reflect an increase or decrease in assistance dependent upon the level of increase in
the tax base, amount of elimination of blight and/or a number of variables that may
substantiate the need for assistance. An adjustment in the amount of assistance
that can be provided is at the sole discretion of the Board of the Economic
Development Authority as long as the requested uses are legal under the Minnesota
State Statutes for the use of tax increment financing.
Within the Development District (herein referred to as the "City" limits) but outside
of TIF Districts
The evaluation of Tax Increment Financing assistance that could be provided to an
applicant will be based on (A) the analysis of information provided on the
application for Tax Increment Finance assistance (Attachment "N'), (B) square
footage cost of the project, (C) balance available in the Economic Development
Authority excess tax increment fund and (D) proof of need for assistance under the
"but for" test for use of tax increment financing.
TYPES OF ASSISTANCE:
Within TIF Districts
Tax Increment Financing can be provided in either "pay as you go" or "up front"
payments. "Pay as you go" is wherein the Mound View Economic Development
Authority compensates the applicant for a predetermined amount for a
predetermined number of years. The applicant pays for the (re)development up
front and then annual payments are issued to the applicant based on the need for
assistance and increment generated from the project. "Up front" payments is
wherein the Mounds View Economic Development Authority must issue revenue or
general obligation bonds to pay for the (re)development prior to the completion of
the project. The increment from the project is then used for repayment of the
bonds. The Mounds View Economic Development Authority gives preference to the
use of "pay as you go" assistance to finance private development projects due to the
reduced risk to the community. The EDA will consider "up front" payment projects
that would benefit the entire community and are not possible to be funded under a
"pay as you go" basis.
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
Within the City but outside of TIF Districts
Financing from the dedicated tax increment fund can be provided in annual
installments to the applicant based on the positive cash flow balance in the
Economic Development Authority's dedicated tax increment fund and need for
assistance based on analysis of the "but for" test for the project. The dedicated tax
increment fund includes a value based on the use and is adjusted along with the
budget process and goals and objectives for economic and redevelopment on an
annual basis.
ADMINISTRATION POOLED FUNDS AND PARCEL DECERTIFICATION:
Administration
Tax Increment Finance districts will be administered in accordance with applicable
Minnesota State Statutes the Tax Increment Finance Plan, and the Development
District Plan.
Pooled Funds
Pooled funds are available when the current years increment exceeds existing
obligations. In the past, funds have been allocated for low interest improvement
loans, housing replacement, and Highway 10 redevelopment. The Mounds View
Economic Development Authority will address the future use of pooled funds in the
following manner: (1) view tax increment as a means secondary to programmatic
objectives; (2) allocate all available pooled increment; and (3) community decides on
future development needs and uses TIF and/or other means to accomplish those
ends. To more effectively utilize pooled increment, the Economic Development
Commission will recommend funding priorities to the Economic Development
Authority. This will be done in conjunction with the annual budgetary process.
Requests made for the use of pooled funds by a business or developer outside
established TIF districts are discussed in the two previous sections.
Parcel Decertification
Parcels in Mounds View's Tax Increment Finance districts will be decertified as
required by and in accordance with applicable Minnesota State Statutes, the
Development District Plan, and the TIF Plans as amended. In the event that the
Economic Development Authority desires to return pooled increment to the respective
taxing jurisdictions, the following guidelines will be observed: (1) reserves should be
greater than or equal to next years projected increment; and (2) prior to disbursing
pooled funds to the respective taxing jurisdictions, the Economic Development
Authority will consider future projects and community needs.
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
APPLICATION PROCESS:
The following delineates the Mounds View Economic Development Authority's
application process for Tax Increment Financing assistance:
1. Applicant submits the completed application (Attachment `A') and Deposit
Agreement (Attachment "B') along with all application fees.
2. City staff reviews the application and completes the Application Review
Worksheet (Attachment "C').
3. Results of the Worksheet are submitted to the appropriate governing authorities
forpreliminary approval of theproposal.
4. If preliminary approval is granted, a development agreement, business subsidy
agreement, and amendments to the Tax Increment Financing Plan, along with
all necessary notices, resolutions and certificates are prepared by City staff
and/or consultants.
5. If applicable, notices are published and sent to the county and school board.
6. If necessary, public hearing(s) on the proposed project are held.
7. The Economic Development Authority considers final approval of the proposal.
N:\DATA\GROUPS\ECONDEV\TIF\Pohey.DOC
Attachment A: APPLICATION FOR TAX INCREMENT FINANCING
A. APPLICANT INFORMATION
Name of Corp oration/Partnership_
Address
Primary Contact
Address
Phone Fax
On a separate sheet, please provide the following:
• Brief description of the corporation/partnership's business, including
history, principal product or service, etc... Attach as Exhibit A.
• Brief description of the proposed project. Attach as Exhibit B.
• List names of officers and shareholders/partners with more than five
percent (5%) interest in the corporation/partnership. Attach as Exhibit
C.
• A but -for analysis. Attach as Exhibit D.
Attorney Name
Address
Phone
Fax
Email
Accountant Name
Address
Phone
Fax
Email
Contractor Name
Address
Phone
Fax
Email
Engineer Name
Address
Phone
Fax
Email
Architect Name
Email
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
B. PROJECT INFORMATION
The project will be:
_Vacant Land Development _New Construction _Expansion
Commercial Redevelopment: _New Construction _Expansion
Industrial Redevelopment: _New Construction Rehabilitation
The project will be: _Owner Occupied _Leased Space
If leased space, please attach a list names and addresses of future lessees and indicate the
status of commitments or lease agreements. Attach as Exhibit E.
Project Address _
Legal Description
Site Plan Attached: _ Yes _ No
Building Square Footage:
Amount of Tax Increment Requested:
Land
Public Improvement
Site Improvement
Current Real Estate Taxes on Project Site:
Estimated Real Estate Taxes upon Completion:
Construction Start Date:
Construction Completion Date:
If Phased Project: Year % Completed
Year % Completed
C. PUBLIC PURPOSE
It is the policy of the City of Mounds View that the use of Tax Increment
Financing should result in a benefit to the public. Please indicate how this
project will serve a public purpose.
Job Creation: Number of existing jobs
Number of jobs created by project
Average hourly wage of jobs created
_New industrial development which will result in additional private
investment in the area.
_The project contributes to the fulfillment of the City's economic
development and redevelopment goals
_Removal of blight.
_Rehabilitation of a high profile or priority site.
Other:
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D. SOURCES & USES
SOURCES
Bank Loan
Other Private Funds
Equity
Fed Grant/Loan
State Grant/Loan
Tax Increment
ID Bonds
TOTAL
NAME
USES
Land Acquisition
Site Development
Construction
Machinery & Equipment
Architectural & Engineering Fees
Legal Fees
Interest During Construction
Debt Service Reserve
Contingencies
TOTAL
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AMOUNT
AMOUNT
E. ADDITIONAL DOCUMENTATION
Applicants will also be required to provide the following documentation.
A) Written business plan, including a description of the
business, ownership/management, date established, products and
services, and future plans
B) Financial Statements for Past Two Years
Profit & Loss Statement
Balance Sheet
C) Current Financial Statements
Profit & Loss Statement to Date
Balance Sheet to Date
D) Two Year Projections
F) Personal Financial Statements of all Major Shareholders if
"Up Front" Financing is Requested
Profit & Loss
Current Tax Return
G) Letter of Commitment from Applicant Pledging to Complete
During the Proposed Project Duration
H) Letter of Commitment from the Other Sources of Financing,
Stating Terms and Conditions of their Participation in
Project
I) Application fee of $5000
Note: All Major shareholders will be required to sign personal guarantees if
up front financing of the project is required.
The undersigned certifies that all information provided in this application is true and correct
to the best of the undersigned's knowledge. The undersigned authorizes the Mounds View
Economic Development Authority to check credit references and verify financial and other
information. The undersigned also agrees to provide any additional information as may be
requested by the Authority after the filing of this application.
Applicant N
IC
N:\DATA\GROtJPS\ECONDEV\TIF\Policy.DOC
Attachment B
Deposit Agreement for Evaluation of Tax Increment Assistance
By and Between the Mounds View Economic Development
Authority and (The Applicant)
This agreement made as of the _ day of 2000 by and between
the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body
corporate and politic, organized and existing under the laws of the State of
Minnesota (the "EDA") and (The Applicant).
WITNESSETH:
WHEREAS, the EDA has the powers provided in Minnesota Statutes,
Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the "Act"); and
WHEREAS, pursuant to and in furtherance of the objectives of the Act, the
EDA has undertaken a program to promote development and redevelopment of
certain land within the City of Mounds View and in connection is engaged in
carrying out the Mounds View Economic Development Project as detailed in EDA
document dated 5/9/94 (the "Project") within the City; and
WHEREAS, the redevelopment and development of property within the
Project by private developers are stated objectives of the Project Plan.
NOW THEREFORE, in consideration of a mutual covenants made herein and
for other good and valuable consideration set forth in the Agreement, the parties
agree as follows:
Section 1. (The Applicant) agrees to provide the EDA with a deposit of
$5,000 for the EDA's consultants to investigate the feasibility of providing Tax
Increment Financing assistance to (The Applicant) for the redevelopment of the (the
"Property"). If the EDA incurs additional expenses directly related to the feasibility
of providing Tax Increment Assistance to (The Applicant) beyond the $5,000, prior
to the execution of the Developer's Agreement, the EDA shall notify (The Applicant)
in writing and (The Applicant) will be required to deposit additional funds as a
condition of the EDA entering into any such Development Agreement.
Section 2. If the project is approved and (The Applicant) proceeds with the
project, the EDA shall reimburse (The Applicant)' deposit to the extent permissible
under the TIF Act. If (The Applicant) does not proceed with the redevelopment of
the Property due to the decision of either the EDA or (The Applicant), the EDA shall
reimburse the applicant for the unused portion of the deposit.
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Section 3. Nothing contained in this agreement shall in any way obligate
either party to proceed with the redevelopment of the Property or otherwise enter
into a Development Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the day and year first above written.
MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
mm
STATE OF MINNESOTA)
) SS
COUNTY OF )
Dan Coughlin
ITS PRESIDENT
Michael Ulrich
ITS EXECUTIVE DIRECTOR
The foregoing instrument was acknowledged before me on this day of
, 2000, by Dan Coughlin and Michael Ulrich, the President and
Executive Director respectively of the Mounds View Economic Development
Authority named in the foregoing instrument.
Notary Public
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
STATE OF MINNESOTA)
) SS
COUNTY OF )
day of
(The Applicant)
IC
ITS:
The foregoing instrument was acknowledged before me on this
, 2000, by
ITIN
of
(The Applicant) named in the foregoing instrument.
Notary Public
N:\DATA\GROUPS\E4 C ONDE V \TIF\Policy.D O C
Attachment C
TAX INCREMENT FINANCING PROPOSAL REVIEW WORKSHEET
REDEVELOPMENT DISTRICT
1. Ratio of Private to Public Investment in Project: Points:
$
Private investment
4:1
5
$
Public Investment
3:1
4
Less than 15
Ratio of Private to Public Financing
2:1
3
$ TIF request $15,000 or less
5
1:1
2
$ of TIF per new job created $22,000 or less
Less than 1:1
1
2. Increase in Real Estate Value:
Points:
1
$
Value of Site before redevelopment
1:5+
5
$
Value of site after redevelopment
1:4
4
$
Ratio of value before:after redevelopment
1:3
3
1:2
2
Less than 1:2
1
3. New Job Creation in the City of MoundsView: Points:
Number of new jobs as a result of the project. 50+
5
Number of existing/retained jobs divided by 10. 30+
4
Total 25+
3
15+
2
Less than 15
1
4. Ratio of TIF to new jobs created: Points:
$ TIF request $15,000 or less
5
Number of new jobs created $20,000 or less
4
$ of TIF per new job created $22,000 or less
3
$25,000 or less
2
Over $25,000
1
5. Wage Level of jobs created:
Average hourly wage
of jobs created:
6. Project size:
The project will result in the construction
of square feet
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Points:
Over $21/ hour
5
$18 —21 / hour
4
$14-17 / hour
3
$10-13 / hour
2
Under $10 / hour
1
Points• _
Over 120,000
5
100,000+
4
80,000+
3
60,000+
2
50,000+
1
7. Type of Project:
100% Owner Occupied
Mix Owner Occupied & Investment
Investment Property
FR1
Industrial
W arehouselDistrib ution
Commercial
Housing
9. The project will pay annual
property taxes in the first fully assessed
year of $
Points:
5
4
3
Points:
5
4
3
3
Points:
150,000+
5
100,000+
4
75,000+
3
50,000+
2
25,000+
1
Below 25,000
0
10. Likelihood that the project will result in Points:_
unsubsidized, spin-off development.
High 5
Moderate 3
Low 1
Sub - Total Points: of a possible 50 points.
11. Bonus Points Bonus Points:
The project will be 100% pay-as-you-go TIF. 3 points
The project contributes to Highway 10 Redevelopment 3 points
Total Points:
Overall project analysis: High 50-43 points
Moderate 42-34 points
Low 33-26 points
Not Eligible 25-0 points
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
el <
ECONOMIC DEVELOPMENT COMMISSION AGENDA
May 25th 2000
7:30 A.M.
MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS
1. CALL TO ORDER
2. ROLL CALL (Present = P, Absent = A)
Belting
Carlson
Field
Goff
Johnson
3. APPROVE EDC MINUTES
April 27th, 2000
Action: Motion
Second
Vote
4. SPECIAL BUSINESS
AN
W Ma"
Coughlin (EDA Liaison)
Jopke (Staff)
(Staff)
A. Welcome New Commission Member Torri Johnson / Oath of Office —No Materials
Attached
5. Report of Commissioners, Staff and EDA Liaison
A. Report of Commissioners and EDA Liaison —No Materials Attached
B. Chamber of Commerce Update —No Materials Attached
6. EDC BUSINESS
A. Tax Increment Finance Policy Revisions
B. Mermaid Hotel and Banquet Center TIF Application
C. Business Retention Visits
7. ADJOURN
W To
Next Regularly Scheduled Meeting: June 22nd, 2000 at 7:30 A.M
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