HomeMy WebLinkAbout05-25-2000Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
April 27th, 2000
City of Mounds View, Council Chambers
2401 Highway 10, Mounds View, MN 55112
CALL TO ORDER:
The meeting was called to order at 7:37 a.m. by Chairperson Tom Field.
2. ROLL CALL:
Members Present. Dr. Greg Belting, Cindy Carlson, Tom Field, Rosemary Goff, and EDA Liaison
Dan Coughlin.
Members Absent. Wendy Marty and Sean Walther
Staff Present., Economic Development Coordinator Aaron Parrish and Community Development
Director Rick Jopke.
3. APPROVAL OF MINUTES:
Motion/Second: Goff/Carlson moved to approve the minutes from February 24th, 2000.
Motion Carried: 4 Ayes 0 Nays
4. SPECIAL BUSINESS
A. Election of Vice President
Motion/Second: Carlson/Belting nominated Commissioner Rosemary Goff for the position of
Vice President
Motion Carried 4 ayes 0 nays
5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON
A. Commissioner and EDA Liaison Reports
EDA Liaison Dan Coughlin indicated that the EDA anticipated appointing a new commission
member at the May 8th meeting.
B. NB—MV Chamber of Commerce Update
Carol Frey, President of the N& -MV Area Chamber of Commerce provided the Commission
with information on the Chamber's recent activities. President Frey indicated that the
Chamber is currently planning a golf tournament, preparing for the annual "Business of the
Year" awards, and arranging the Chamber's Gala event.
C. NB—MV Chamber of Commerce Charitable Giving Request
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Coordinator Parrish discussed a grant request submitted to the NB--MV Area Chamber of
Commerce. The request was for $3500 and includes funding for an intern and economic
development marketing materials.
D. Highway 10 Issues
Director Jopke informed the Commission of an upcoming study regarding Highway 10. The
study will be conducted by Springsted Public Finance Advisors and will incorporate previous
studies, address potential financing options, and highlight action steps. Director Jopke
indicated that a subcommittee comprised of city commissions, local business
representatives, and other members of the community will meet on May 10th or 11th.
E. Project Updates
Coordinator Parrish updated the Commission on the Mermaid Hotel and Banquet Center
and Walgreens developments. He indicated that the Mermaid had recently acquired an
adjacent parcel of property, and has an option on an additional parcel of property. With
regards to Walgreens, Coordinator Parrish indicated that preliminary plans have been
received that incorporates a restaurant.
May 15" Business Lunch
EDA Liaison Coughlin announced that he will be holding a business luncheon in conjunction
with the NB—MV Chamber of Commerce on May 15th, at 12:00 p.m. in Council Chambers.
6. EDC BUSINESS
A. Options for 2901 Highway 10
Based on a request at a previous EDC meeting and direction from the EDA, Coordinator
Parrish highlighted three potential options to address the current condition of 2901 Highway
10. Options presented included purchasing the property, active code enforcement, and
demolition assistance. After discussing the aforementioned options, a motion was made to
recommend the provision of demolition assistance for 2901 Highway 10 to the EDA:
Motion/Second: Goff/Carlson
Motion Carried 4 ayes 0 nays
B. Tax Increment Finance Policy Revisions
After reviewing the Tax Increment Finance policy as presented, the following modifications
were suggested:
1. Commissioner Goff and Carlson suggested that the EDC and EDA be incorporated into
item 3 of "Pooled Funds' section to further define who decides on future development
needs.
2. Commissioner Carlson suggested adding an item number 4 to the "Pooled Funds"
section. It was suggested that this additional item further define the EDC's role in relation
to the return of pooled increment to the respective taxing jurisdictions. More specifically,
the EDC would review any proposed return of pooled increment.
3. Regarding "Parcel Decertification," EDA Liaison Dan Coughlin suggested that an item 3
be added to further define the EDC's role in relation to the decertification of particular
parcels within existing tax increment finance districts. More specifically, the EDC would
review any proposed parcel decertification.
4. Chairperson Tom Field addressed the need for a section discussing the establishment of
new tax increment finance districts.
5. Director Jopke proposed additions to "Attachment A: Application for TIF Assistance" to
N:\DATA\GROUPS\ECONDEV\EDC\Minutes\MinOO\04-27-OO.doe
Nl®t A�,ppr®m®(cg
reflect the use TIF as it relates to housing.
6. Commissioner Carlson commented that an "other" category would be useful in Sources
and Uses section of "Attachment A: Application for TIF Assistance"
7. With regard to the Additional Documentation section of "Attachment A: Application for TIF
Assistance," Chairperson Tom Field indicated that financial statements for three years, as
opposed to two years would provide additional trend data useful for the evaluation of TIF
assistance.
8. With regard to the Additional Documentation section of "Attachment A: Application for TIF
Assistance," Commissioner Carlson suggested adding a line "Y giving the applicant an
opportunity to provide additional information.
8. Adjournment
There being no further business before the Commission, this meeting of the Economic
Development Commission adjourned at 8:50 a.m.
Respectfully Submitted,
Aaron Parrish
Economic Development Coordinator
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Item No. 6A
Meeting Date: May 25th, 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:
Tax Increment Finance Policy Revisions
Date of Report:
May 3, 2000
Background:
At the April meeting, the Commission examined a variety of alterations to Mounds View's Tax
Increment Finance policy. Additions to the policy are highlighted with bold text and are contained
within sections V, VI (new section), VII, and IX. In addition, I have made some minor formatting
changes.
Above and beyond the aforementioned changes, I have identified some additional changes that the
EDC might consider. In particular, the Application Proposal Review Worksheet, section XI, has
been reevaluated to include:
• Item 6: Project size: The square footage for each category has been reduced in the following
manner:
Previous
Proposed Modification
120,000+
100,000+
100,000+
80,000+
80,000+
60,000+
60,000+
40,000+
50,000 or less
40,000 or less
• Item 9: Real Estate Taxes: Criteria for taxes to be collected has been reduced. The following
table is illustrative:
As discussed in the previous staff report, the evaluation tool contained within our TIF policy is based
on a model developed by the City of Elk River. Since a majority of Elk River's projects involve the
development of vacant land, they can expect projects with higher square footages and tax
collections. Like many redeveloping communities, the projects undertaken in Mounds View are
typically smaller in size and scope. Accordingly, the proposed modifications are an attempt to
parallel actual development based on existing constraints.
Previous
Proposed Modification
$150,000
Valuation =
$3,600,000
$120,000
Valuation =
$2,900,000
$100,000
Valuation =
$2,400,000
$80,000
Valuation =
$1,950,000
$75,000(Valuation
=
$1,800,000
$60,000
Valuation =
$1,450,000
$50,000
Valuation =
$1,230,000
$40,000
Valuation =
$1,000,000
$25,000
Below $25,000
Valuation =
Valuation =
$640,000
$640,000
$20,000
Below $20,000
Valuation =
Valuation =
$500,000
<$500,000
As discussed in the previous staff report, the evaluation tool contained within our TIF policy is based
on a model developed by the City of Elk River. Since a majority of Elk River's projects involve the
development of vacant land, they can expect projects with higher square footages and tax
collections. Like many redeveloping communities, the projects undertaken in Mounds View are
typically smaller in size and scope. Accordingly, the proposed modifications are an attempt to
parallel actual development based on existing constraints.
City of Mounds View Staff Report
May 3, 2000
Page 2
Finally, a sample "but for' analysis his been incorporated as section XII. This essentially highlights
our expectations as it pertains to this important test.
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
N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Staff00\05-6A.doc
City of Mounds View Economic Development Authority
Tax Increment Financing
Policy & Application
Adopted: 5/12/97
Revised: ,2000
I-1 ,, ..... �? `3'
Table of Contents
I. General Policy 3
II. Projects Eligible for Tax Increment Financing 3
III. Costs Eligible for Tax Increment Financing 3
IV. Determination of the Amount of Assistance to the Applicant 4
V. Type of Assistance 4
VI. Establishing a Tax Increment Finance District 5
VII. Administration, Pooled Funds, and Parcel Decertification 5
VIII. Application Process 6
IX. Attachment A: Application for Tax Increment Finance 7
X. Attachment B: Deposit Agreement
11
XI. Attachment C: Application Proposal Review Worksheet 14
XII. Sample But -For Analysis 16
2
I. GENERAL POLICY:
{ The Mounds View Economic Development Authority has the powers under the
Minnesota Statute Sections 469.124 through 469.137 and sections 469.001 through
469.047 to govern and monitor the use of tax increment financing for Mounds
View's tax increment districts and the Mounds View development district which
encompasses the entire boundaries of the City of Mounds View. It is the
responsibility of the Mounds View Economic Development Authority to use tax
increment financing as a tool to accomplish the City's economic development and
redevelopment goals and objectives. The Mounds View Economic Development
Authority understands and abides by the fundamental principal which makes tax
increment financing viable to encourage development and redevelopment which
would otherwise not occur.
The Mounds View Economic Development Authority shall tax increment financing
in cases that serve to accomplish the City's development goals and activities as
hereby defined in projects eligible for tax increment financing.
II. PROJECTS ELIGIBLE FOR TAX INCREMENT FINANCING:
Projects eligible for consideration of Tax Increment Financing assistance per the
Mounds View Development Project Plan dated May 9, 1994 include, but are not
limited to (1) the attraction, retention, rehabilitation and preservation of
commercial, industrial, retail, residential, recreational and public service facilities;
(2) new and rehabilitated public infrastructure; (3) community and other public
service centers; (4) senior/mature adult and/or other housing development
partnerships or other multi -use housings projects and facilities; (5) other public
utilities (including telecommunications); (6) business incubator loan and other
business programs; and (7) transportation systems. More emphasis will be placed
on those items which increase the tax base, eliminate blight, and the meet the City's
economic and redevelopment goals.
III. COSTS ELIGIBLE FOR TAX INCREMENT FINANCING:
Project costs qualifying for Tax Increment Financing assistance, as defined under
the TIF Act, include utilities design, architectural and engineering fees directly
attributable to site work, site related permits, earthwork/excavation, soils
correction, landscaping, utilities (sanitary sewer, storm sewer, and water), streets
and roads, street/parking lot paving, street/parking lot lights, curb and gutter,
sidewalks, land acquisition, special assessment, legal (relating to acquisition,
financing, and closing fees), soils tests and environmental studies, surveys, park
dedication fee, SAC, WAC, charges, titles insurance and TIF application deposit.
3
IV. DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT:
Within TIF Districts
The amount of Tax Increment Financing provided to an applicant will be based, in
part, on the analysis of information provided on the application for Tax Increment
Financing assistance (Attachment "N'), 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 "A!'), (B) square
footage cost of the project, (C) balance available in the Economic Development
Authority excess tax increment fund and (D) proof of need for assistance under the
"but for" test for use of tax increment financing. See Attachment D for a sample
"but for" analysis.
V. TYPES OF ASSISTANCE:
Within TIF Districts
Tax Increment Financing can be provided in either "pay as you go" or "up front"
payments. "Pay as you go" is wherein the Mounds View Economic Development
Authority compensates the applicant an amount equal to a predetermined
percentage of the actual increment produced by the project for a
predetermined number of years. The applicant pays for the (re)development up
front and then annual payments are issued to the applicant based on the need for
assistance and increment generated from the project. "Up front" payments is
wherein the Mounds View Economic Development Authority must issue revenue or
general obligation bonds to pay for the (re)development prior to the completion of
the project. The increment from the project is then used for repayment of the
bonds. The Mounds View Economic Development Authority gives preference to the
use of "pay as you go" assistance to finance private development projects due to the
reduced risk to the community. The EDA will consider "up front" payment projects
4
that would benefit the entire community and are not possible to be funded under a
"pay as you go" basis.
Within the City but outside of TIF Districts
Financing from the dedicated tax increment fund can be provided in annual
installments to the applicant based on the positive cash flow balance in the
Economic Development Authority's dedicated tax increment fund and need for
assistance based on analysis of the "but for" test for the project. The dedicated tax
increment fund includes a value based on the use and is adjusted along with the
budget process and goals and objectives for economic and redevelopment on an
annual basis.
VL ESTABLISHING A TAX INCREMENT FINANCE DISTRICT:
New tax increment finance districts in the City of Mounds View will be
established in accordance with applicable Minnesota State Statutes, the
Tax Increment Finance Plan, and the Development District Plan.
VII. ADMINISTRATION POOLED FUNDS & PARCEL DECERTIFICATION:
Administration
Tax Increment Finance districts will be administered in accordance with applicable
Minnesota State Statutes, the Tax Increment Finance Plan, and the Development
District Plan.
Pooled Funds
Pooled funds are available when the current years increment exceeds existing
obligations. In the past, funds have been allocated for low interest improvement
loans, housing replacement, and Highway 10 redevelopment. The Mounds View
Economic Development Authority will address the future use of pooled funds in the
following manner: (1) view tax increment as a means secondary to programmatic
objectives; (2) allocate all available pooled increment; and (3) the Economic
Development Commission and Economic Development Authority decides on
future development needs and uses TIF and/or other means to accomplish those
ends. (4) in the event that the Economic Development Authority determines
pooled increment should be returned to the respective taxing jurisdictions,
the Economic Development Commission will evaluate the potential action
and make a recommendation to the Economic Development Authority.
To more effectively utilize pooled increment, the Economic Development Commission
will recommend funding priorities to the Economic Development Authority. This
will be done in conjunction with the annual budgetary process.
Requests made for the use of pooled funds by a business or developer outside
established TIF districts are discussed in sections IV and V.
Parcel Decertification
Parcels in Mounds View's Tax Increment Finance districts will be decertified as
required by and in 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. (3) in the event that
parcels are going to be decertified, the Economic Development Commission
will evaluate the potential action and make a recommendation to the
Economic Development Authority.
VIII. APPLICATION PROCESS:
The following delineates the Mounds View Economic Development Authority's
application process for Tax Increment Financing assistance:
1. Applicant submits the completed application (Attachment `A') and Deposit
Agreement (Attachment "B') along with all application fees.
2. City staff reviews the application and completes the Application Review
Worksheet (Attachment "C').
3. Results of the Worksheet are submitted to the appropriate governing authorities
for preliminary approval of the proposal.
4. If preliminary approval is granted, a development agreement, business subsidy
agreement, and amendments to the Tax Increment Financing Plan, along with
all necessary notices, resolutions and certificates are prepared by City staff
and/or consultants.
5. If applicable, notices are published and sent to the county and school board.
6. If necessary, public hearing(s) on the proposed project are held.
7. The Economic Development Authority considers final approval of the proposal.
0
DX. Attachment A: APPLICATION FOR TAX INCREMENT FINANCING
A. APPLICANT INFORMATION
Name of Corporation/Partnership
Address
Primary Contact
Address
Phone Fax
Email
On a separate sheet, please provide the following:
• Brief description of the corporation/partnership's business, including
history, principal product or service, etc... Attach as Exhibit A.
• Brief description of the proposed project. Attach as Exhibit B.
• List names of officers and shareholders/partners with more than five
percent (5%) interest in the corporation/partnership. Attach as Exhibit
C.
• A but -for analysis.
Attach as Exhibit D.
Attorney Name
Address
Phone
Fax Email
Accountant Name
Address
Phone
Fax Email
Contractor Name
Address
Phone
Fax Email
Engineer Name
Address
Phone
Fax Email
Architect Name
Address
Phone
Fax Email
7
B. PROJECT INFORMATION
The project will be:
_Vacant Land Development
Commercial Redevelopment:
_Industrial Redevelopment:
_Housing:
_New Construction _
_New Construction _
_New Construction
New Construction
Expansion
Expansion
Rehabilitation
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:
Building Square Footage:
Number of Units if Applicable:
Yes No
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
investment in the area.
private
_The project contributes to the fulfillment of the City's economic
development and redevelopment goals
_Removal of blight.
_Rehabilitation of a high profile or priority site.
Provision of Low and Moderate Income Housing.
Other:
D. SOURCES & USES
SOURCES
Bank Loan
V
Other Private Funds
Equity
Fed Grant/Loan
State Grant/Loan
Tax Increment
ID Bonds
Other
TOTAL
NAME
USES
Land Acquisition
Site Development
Construction
Machinery & Equipment
Architectural & Engineering Fees
Legal Fees
Interest During Construction
Debt Service Reserve
Contingencies
Other
TOTAL
W
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 Three Years
Profit & Loss Statement
Balance Sheet
C) Current Financial Statements
Profit & Loss Statement to Date
Balance Sheet to Date
D) Two Year Projections
F) Personal Financial Statements of all Major Shareholders if
"Up Front" Financing is Requested
Profit & Loss
Current Tax Return
G) Letter of Commitment from Applicant Pledging to Complete
During the Proposed Project Duration
H) Letter of Commitment from the Other Sources of Financing,
Stating Terms and Conditions of their Participation in
Project
I) Application fee of $5000
J) Additional information that will be helpful in evaluating
your application
Note: All Major shareholders will be required to sign personal guarantees if
up front financing of the project is required.
The undersigned certifies that all information provided in this application is true and correct
to the best of the undersigned's knowledge. The undersigned authorizes the Mounds View
Economic Development Authority to check credit references and verify financial and other
information. The undersigned also agrees to provide any additional information as may be
requested by the Authority after the filing of this application.
Applicant N
By
Tts
X. Attachment B: Deposit Agreement
Deposit Agreement for Evaluation of Tax Increment Assistance
By and Between the Mounds View Economic Development
Authority and (The Applicant)
This agreement made as of the _ day of 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.
11
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
12
STATE OF MINNESOTA)
) SS
COUNTY OF )
day of
(The Applicant)
ITS:
The foregoing instrument was acknowledged before me on this
, 2000, by
the
of
(The Applicant) named in the foregoing instrument.
Notary Public
13
I XI. Attachment C: APPLICATION PROPOSAL REVIEW WORKSHEET
REDEVELOPMENT DISTRICT
1. Ratio of Private to Public Investment in Project: Points:
$
Private investment
4:1
5
$
Public Investment
3:1
4
Less than 15
Ratio of Private to Public Financing
2:1
3
1:1
2
Less than 1:1
1
2.
Increase in Real Estate Value:
Points:
$
Value of Site before redevelopment
1:5+
5
$
Value of site after redevelopment
1:4
4
$
Ratio of value before:after redevelopment
1:3
3
1:2
2
Less than 1:2
1
3. New Job Creation in the City of MoundsView: Points:
Number of new jobs as a result of the project. 50+
5
Number of existing/retained jobs divided by 10. 30+
4
Total 25+
3
15+
2
Less than 15
1
4. Ratio of TIF to new jobs created: Points:
$ TIF request $15,000 or less 5
Number of new jobs created $20,000 or less 4
$ of TIF per new job created $22,000 or less 3
$25,000 or less 2
Over $25,000 1
5. Wage Level of jobs created: Points:
Average hourly wage Over $21/ hour 5
of jobs created: $18 —21 / hour 4
$14-17 / hour 3
$10-13 / hour 2
Under $10 / hour 1
6. Project size: Points:
The project will result in the construction Over 100,000 5
of square feet 80,000+ 4
60,000+ 3
40,000+ 2
40,000 or less 1
14
7. Type of Project: Points:
100% Owner Occupied 5
Mix Owner Occupied & Investment 4
Investment Property 3
8. Use: Points•
Industrial 5
Warehouse/Distribution 4
Commercial 3
Housing 3
9. The project will pay annual Points:
property taxes in the first fully assessed 120,000+ 5
year of $ 80,000+ 4
60,000+ 3
40,000+ 2
20,000+ 1
Below 20,000 0
10. Likelihood that the project will result in Points:
unsubsidized, spin-off development.
High 5
Moderate 3
Low 1
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
15
0,�
XII. ATTACHMENT D: SAMPLE BUT -FOR ANALYSIS
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
FE
WITHOUT
WITH
TAX INCREMENT FINANCING
TAX INCREMENT FINANCING
SOURCES AND USES
SOURCES AND USES
SOURCES
SOURCES
Mortgage
9,600,000
8,667,000
Equity
2,400,000
2,400,00
Tax Increment Financing
0
933,000
12,000,000
12,000,000
TOTAL SOURCES
USES
USES
Land
1,500,000
1,500,000
Site Work
300,000
300,000
Soil Correction
468,000
468,000
Demolition
100,000
100,000
Relocation
65,000
65,000
Subtotal Land Costs
2,433,000
2,433,000
Construction
6,750,000
6,750,000
Finish Manufacturing
250,000
250,000
Subtotal Construction Costs
7,000,000
7,000,000
Soft Costs
350,000
350,000
Taxes
35,000
35,000
Finance Fees
850,000
850,000
Project Manager
542,000
542,000
Developer Fee
540,000
540,000
Contingency
250,000
250,000
Subtotal Soft Costs
2,567,000
2,567,000
TOTAL USES
12,000,000
12,000,000
Income Statement
Income Statement
Sq. Ft. Per Sq. Ft.
Sq. Ft. Per Sq. Ft.
Rent -Space 1
100,000 $8.00
800,000
100,000 $8.00
800,000
Rent -Space 2
25,000 $8.50
212,500
25,000 $8.50
212,500
Rent -Space 3
25,000 $9.00
225,000
25,000 $9.00
225,000
Other
0 $0.00
0
0 $0.00
0
1,237,500
1,237,500
Mortgage
20 Term
1,051,646
20 Term
949,439
9.00% Interest
9.00% Interest
9,600,000 Principal
8,667,000 Principal
Net Income
185,854
288,061
7.74%
12.00%
Total Return on Equity
N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC
FE
Item No. 6B
Meeting Date: May 25th, 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: Mermaid Hotel and Banquet Center TIF Application
Date of Report: May 18, 2000
Background:
W hile we have not received an official TIF Application from the Mermaid at this point, itis anticipated
that one will be submitted in the near future. If an application is submitted prior to next Thursday's
meeting, we will attempt to evaluate it and subsequently make a recommendation to the Economic
Development Authority. To the extent possible, any appropriate information will be distributed prior
to the meeting. Feel free to contact me if you have any questions.
Necessary Actions:
Dependent on the receipt of the application, evaluate the potential for TIF assistance for the
Mermaid project.
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
N:\DA'rA\GROUPS\ECONDEV\EDC\Staff Repo11S\Staff00\05-6B.doc
Item No. 6C
Meeting Date: May 25th, 2000
Type of Business: EB
EB: EDC Business
IN: Informational Item
of Mounds View Staff Re
To: Economic Development Commission
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Business Retention Visits
Date of Report: May 18, 2000
Background:
Last January the EDC developed a Work Plan to guide the Commission's activities for the year
2000. In the process, the EDC indicated an interest in conducting retention calls/visits to local
businesses. At this time, we are asking the EDC to establish a time when visits can be conducted.
While the EDC can structure these visits in any manner it chooses, I would suggest an on-site visit
at least every other month. Two potential options for structuring retention visits include the following:
1. Conduct visits bimonthly after the regular EDC meeting. To the extent possible, EDC
Agendas would be kept to a minimum on the months when retention visits are to be
conducted.
2. Establish a subcommittee of the EDC to conduct visits at times convenient to members.
The above options are intended for discussion purposes. A variety of other approaches could be
considered based on the needs of the Commission.
Necessary Actions:
Establish a Business Retention Visit Program
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
NADATA\GROUPS\ECONDEV\EDC\Staff Reports\Staftb0\05-6C.doc