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HomeMy WebLinkAbout06-12-2000M:\MasterFiles\1999 thru 2010\2000\EDA\EDA Packets\06-12-00\Agenda - EDA.doc CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JUNE 12, 2000 AGENDA ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty, Commissioner Quick, Commissioner Thomason 1. AGENDA ADDITIONS: 2. APPROVAL OF MINUTES A. EDA Meeting Minutes of May 8, 2000 3. SPECIAL ORDER OF BUSINESS: None 4. CONSENT AGENDA 5. EDA BUSINESS A. Consideration of Bid Proposals for 2901 Highway 10 Demolition B. Consider Adoption of Updated Tax Increment Finance Policy C. Authorize Economic Development Commission to examine Business Improvement Partnership Loan request 6. REPORTS 7. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting May 8, 2000 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 8:54 P.M. CALL MEETING TO ORDER ROLL CALL: Coughlin, Marty, Quick, Stigney, and Thomason. NOT PRESENT: None. 1. AGENDA ADDITIONS A. Approve agenda of May 8, 2000 President Coughlin asked the Commission if anyone would like to add items to the agenda. MOTION/SECOND: Marty/Stigney. To approve the agenda of EDA for May 8, 2000, as presented. Ayes – 5 Nays – 0 Motion carried. 2. APPROVAL OF EDA MINUTES A. Approve minutes of April 24, 2000. MOTION/SECOND: Thomason/Quick. To approve the minutes of EDA for April 24, 2000, as presented. Commissioner Marty stated he was not present at this meeting, and therefore, would abstain. Ayes – 4 Nays – 0 Abstain – 1 (Marty) Motion carried. 3. SPECIAL ORDER OF BUSINESS None. 4. CONSENT AGENDA None. Mounds View EDA May 8, 2000 Regular Meeting Page 2 5. EDA BUSINESS A. Public Hearing and Consideration of Resolution 00-EDA-129, a Resolution Authorizing the Sale of EDA-Owned Property Located at 2225 Hillview Road to Habitat for Humanity. President Coughlin opened the Public Hearing at 8:57 p.m. Planning Associate Ericson stated the item before the Council was a Minnesota Statutes requirement that any sale of publicly owned land requires a public hearing. He stated this item was discussed at previous Economic Development Authority meetings, and the issue before the Council at this time is the sale of the land to Habitat for Humanity at a purchase price of $50,000. He indicated the Authority has been provided with a revised resolution, in addition to the Contract for Private Redevelopment, which was submitted to staff that afternoon. Planning Associate Ericson advised that the Contract for Private Redevelopment has been forwarded to Habitat for Humanity staff, and they are in the process of reviewing it, however, it is based upon one of their purchase and redevelopment agreements that they have utilized in another city, therefore, it should be in a form that is acceptable to Habitat for Humanity, and given that it was drafted by the City Attorney, it is in a form that is acceptable to the City as well. Planning Associate Ericson stated there are blank spaces in the Contract for Private Development, which require the insertion of the square footage of the proposed home, and the estimated value of the home. He indicated there are also blank spaces pertaining to the timing of the project, and those would likely be filled in the following day, as that information becomes available. Planning Associate Ericson advised that Resolution 00-EDA-029 has been revised. He indicated that the heading of the resolution that was previously provided to the Authority indicates that this is a resolution approving and authorizing a Purchase and Redevelopment Agreement, however, the revised language indicates that this is a Contract for Private Redevelopment. He stated Recital 1.01 in Section 1, contains a typographical error with regard to the reference to Minnesota State Statutes, however, the Section numbers have been revised, and are accurate. He indicated recital 1.05 has been revised to indicate “The Authority acquired the land, house, and garage located a 2225 Hillview.” Planning Associate Ericson stated a new Recital 1.06 has been added to the resolution, which indicates “The Authority contracted with Kevitt Excavating to have the house demolished and the site restored for redevelopment, leaving the garage as the only remaining structure on the property.” He advised that the language “Purchase and Redevelopment Agreement” in Recital 1.07, formerly 1.06, has been stricken and replaced with the language “Contract for Private Redevelopment.” He explained that these were the changes to the resolution presently before the Mounds View EDA May 8, 2000 Regular Meeting Page 3 Council. Planning Associate Ericson stated the resolution contains a reference to the agreement, which has been reviewed by the City Attorney, and is expected to be acceptable to Habitat for Humanity staff. He indicated that if the Economic Development Authority approves the resolution at this time, staff anticipates that the closing would occur later in the week. He stated a representative from Habitat for Humanity was present to address any questions regarding the lot or their proposal. There was no public input. President Coughlin closed the Public Hearing at 9:00 p.m. MOTION/SECOND: Marty/Quick. To Waive the Reading and Approve Resolution 00-EDA- 129, a Resolution Approving and Authorizing a Contract for Private Redevelopment By and Between the Mounds View Economic Development Authority and Twin Cities Habitat for Humanity. Ayes – 5 Nays – 0 Motion carried. B. Consideration of Resolution No. 00-EDA-127 Appointing an Economic Development Commission Member. Mayor Coughlin provided the Authority with a copy of the application submitted by Torri Lynne Johnson, 7730 Long Lake Road. He indicated Ms. Johnson has a business background, and works in the area as a Financial Consultant with Northern States Power Company. He stated he would present her name for the Authority’s consideration for appointment to fill the vacancy on the Economic Development Commission. MOTION/SECOND: Quick/Thomason. To Approve the Appointment of Torri Lynne Johnson to Fill the Vacancy on the Economic Development Commission. Council Member Stigney inquired if there were any other applicants. Mayor Coughlin stated there were none. He indicated he made repeated telephone calls and other contacts to area business people, including the New Brighton-Mounds View Chamber of Commerce, encouraging other persons to apply. He indicated Ms. Johnson’s was the only application he had received in the time frame allotted, and he finds her application to be in order. He stated he believed she would be a wonderful addition to the Economic Development Commission. Ayes – 5 Nays – 0 Motion carried. Mounds View EDA May 8, 2000 Regular Meeting Page 4 C. Authorize Staff to Discuss Demolition Options with Property Owner of 2901 Highway 10. Economic Development Coordinator Parrish stated at the April 27th meeting of the Economic Development Commission, the Commission examined options to address the current condition of 2901 Highway 10, also known as the Kunz Oil property. He stated the Commission examined three potential alternatives, which included purchasing the property, providing demolition assistance, and pursuing active Code enforcement. He explained that after examining the effectiveness and financial feasibility of the options, the Commission voted in favor of providing demolition assistance. Economic Development Coordinator Parrish stated this is a practice that has been utilized in the Housing Replacement Program, and specifically with regard to 8300 Fairchild Avenue, where assistance was provided to remove the house on the property. He advised that from a financial perspective, the staff report indicates that the demolition project would cost approximately $8,000, however, the amount may be substantially less, in light of the previous demolition, which cost approximately $5,500, and given the fact that no filling would be required. Economic Development Coordinator Parrish stated staff is seeking authorization to begin negotiations with the property owner, and if granted staff would proceed. He indicated that when and if a mutual agreement has been reached between the City and the property owner, staff would bring the final proposal back before the Authority for authorization of expenditures. Commissioner Marty stated this property was utilized as a gas station. He inquired if there were hazardous materials on the site that would require to be cleaned up, such as the removal of old tanks. Economic Development Director Parrish stated it was his understanding that the site has been cleared. He stated he was not aware of the current condition of the tanks, pointing out that the cement stubs are still visible. He explained that this would not become a factor, given that the City would have no ownership in the property, and would simply provide some assistance to redevelop the site on a limited basis. He advised that environmental considerations would not be transferred on to the City. MOTION/SECOND: Thomason/Marty. To Authorize Staff to Discuss Demolition Assistance Options with the Property Owner at 2901 Highway 10. Ayes – 5 Nays – 0 Motion carried. 6. REPORTS President Coughlin stated he attended the previous Economic Development Commission meeting, at which there was discussion regarding the items listed on the Authority agenda. He Mounds View EDA May 8, 2000 Regular Meeting Page 5 explained that the Commission was also considering the Tax Increment Finance policy, which should be in final form at the next regular Economic Development Commission meeting. President Coughlin extended his appreciation to Economic Development Coordinator Parrish for his assistance in contacting the Chamber during the search for applicants to serve on the Commission. He stated he had done a great job behind the scenes. President Coughlin expressed his appreciation to the Council for their perseverance and due diligence, and to staff for a job well done. 7. ADJOURNMENT President Coughlin adjourned the meeting at 9:06 p.m. Respectfully submitted, Recorded and transcribed by: Trish Pearson TimeSaver Off Site Secretarial, Inc. Item No. 5A Meeting Date: June 12, 2000 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View Economic Development Authority From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Consideration of EDA Resolution 00-EDA-130 Awarding the Contract to Demolish 2901 Highway 10 to the Low Bidder Date of Report: June 7th, 2000 SUMMARY At the March 13th meeting of Economic Development Authority, direction was given to the Economic Development Commission to investigate potential options to address the current condition of 2901 Highway 10, or the former Kunz Oil property. The property’s current condition is shown below: Subsequently, it was recommended by the EDC that demolition assistance be provided. Per the recommendation of the EDC, the EDA directed staff to discuss the provision of demolition assistance with the property owner at the Authority’s May 8th meeting. After speaking with the property owner Mr. Tom Deretich, he was receptive to the city’s offer to provide demolition assistance. The Comprehensive Plan calls for the property to be incorporated into a larger mixed-use planned unit development in the future. However, with the provision of demolition assistance some of the issues associated with the site could be reconciled on a more immediate basis. ACTION TO BE CONSIDERED On February 9, 2000, staff mailed out Requests for Proposals (RFPs) for the demolition of 2901 Highway 10 to ten metro area demolition contractors. Five responded with bids to accomplish the demolition work according to the specifications contained therein. The following is a list of the five bids: Contractor BID Lloyds’ $15,655 Dirt & Demolition $ 5,024 USD $ 5,286 Sauter $ 8,050 Kevitt $10,565 Staff has drafted EDA Resolution 00-EDA-130, available on the proceeding page, which awards the demolition contract to Dirt & Demolition, Inc. of Coon Rapids, Minnesota in an amount not to exceed $5,024 plus an additional twenty percent contingency to cover any unforeseen or unanticipated expenses. Typically a ten percent contingency is utilized, but there may be additional expense depending on the results of the state mandated environmental/asbestos survey. With the incorporation of the twenty-percent contingency, the level of assistance would not exceed $6,028.80. RECOMMENDATION Approve EDA Resolution 00-EDA-130, which awards the demolition bid for 2901 Highway 10 to Dirt & Demolition. ____________________________ Aaron Parrish, Economic Development Coordinator 763-717-4029 N:\DATA\GROUPS\ECONDEV\EDA\Staff Reports\Staff 00\06-12 EDA Item 5A.doc RESOLUTION NO. 00-EDA-130 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE DEMOLITION OF 2901 HIGHWAY 10 It is hereby resolved by the Board of Commissioners (the Board) of the Mounds View Economic Development Authority (the Authority) as follows: Section 1. Recitals. 1.01 The Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the Act). 1.02 Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project (the Project) within the City. 1.03 There has been approved pursuant to the Act a Project Plan for the Project. 1.04 The redevelopment of property within the Project is a stated objective of the Project Plan. 1.05 In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain public costs of Development. 1.06 In order to prepare the lot for redevelopment, it is necessary that the Authority provide funding for the demolition of the Property. 1.07 In response to Requests for Proposals mailed to area contractors on May 12, 2000, Staff has received five bids to accomplish the demolition of the Property. Section 2. Resolved. 2.01 That the Board hereby determines that the Authority’s expenditure to effectuate demolition of the Property would be in furtherance of the Project Plan and hereby approves and authorizes said action 2.02 That the Board of the Authority hereby authorizes the President and Executive Director to award the contract to demolish Property to low bidder Dirt & Demolition, Inc., appropriating a maximum of $6,028.80 in tax increment funds. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 12th day of June, 2000. ___________________________ Dan Coughlin, President ATTEST: ________________________________ Michael Ulrich, Acting Executive Director Item No. 5B Meeting Date: June 12th, 2000 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Economic Development Authority From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Tax Increment Finance Policy Revisions Date of Report: August 7, 2018 Background: At the June 5th Work Session, the Council examined the proposed TIF policy contained on pages 3- 17. Per Council direction, Attachment C, beginning on page 15 has been adjusted to reflect reduced square footage associated with building demolition and any potential job loss. Project square footage and new job creation have essentially been replaced with net project square footage and net job creation indicators. In addition, language directing the EDC to examine potential parcels for decertification on an annual basis has also been incorporated into Section IIV (language is highlighted in bold italics on page 6). Aside from the aforementioned modifications, the policy remains relatively unchanged from the June 5th Work Session. A resolution adopting the policy can be found on the proceeding page for your review. Necessary Actions: Review, modify, and subsequently adopt the TIF Policy contained on pages 3-17. ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029 2 RESOLUTION NO. 00-EDA-128 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ADOPTING TAX INCREMENT FINANCE POLICY WHEREAS, Pursuant to Minnesota Statues, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the “Act”) the City of Mounds View can utilize tax increment financing for economic development and redevelopment purposes; and WHEREAS, Pursuant to and in furtherance of the objectives of the Act, the Authority 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 (the Project) within the City. WHEREAS, the Mounds View Economic Development Authority has determined that it is necessary and appropriate to adopt a policy governing the use of tax increment finance in accordance with the Act; and, NOW, THEREFORE, BE IT RESOLVED, by the Mound View Economic Development Authority, Mounds View Minnesota, that the tax increment finance policy, contained in Exhibit A of this resolution is hereby approved, ratified, established, and adopted and shall be placed on file at City Hall. The motion for adoption of the foregoing resolution was introduced by Commissioner __seconded by Commissioner __, and upon a vote being taken thereon, the following voted in favor thereof: Commissioners Adopted this 12th day of June, 2000 ATTEST: _______________________________ Dan Coughlin, EDA President (SEAL) _______________________________ Michael Ulrich, Acting Executive Director M:\MasterFiles\1999 thru 2010\2000\EDA\EDA Packets\06-12-00\Item No. 05B--Updated Tax Increment Financy Policy-- Aaron Parrish.doc City of Mounds View Economic Development Authority Tax Increment Financing Policy & Application Adopted: 5/12/97 Revised: ,2000 DRAFT 4 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 5 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. IV. DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT: Within TIF Districts The amount of Tax Increment Financing provided to an applicant will be based, in part, on the analysis of information provided on the application for Tax Increment Financing assistance (Attachment “A”), amount of increment generated by the project as evaluated by the City’s Financial and/or Bond Counsel and the City’s economic and redevelopment goals. The level of assistance provided will be evaluated on a case by case basis and may reflect an increase or decrease in assistance dependent upon the level of increase in the tax base, amount of elimination of blight and/or a number of variables that may substantiate the need for assistance. An adjustment in the amount of assistance that can be provided is at the sole discretion of the Board of the Economic Development Authority as long as the requested uses are legal under the Minnesota State Statutes for the use of tax increment financing. 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. 6 V. TYPES OF ASSISTANCE: Within TIF Districts Tax Increment Financing can be provided in either “pay as you go” or “up front” payments. “Pay as you go” is wherein the Mounds View Economic Development Authority compensates the applicant an amount equal to a predetermined percentage of the actual increment produced by the project for a predetermined number of years. The applicant pays for the (re)development up front and then annual payments are issued to the applicant based on the need for assistance and increment generated from the project. “Up front” payments is wherein the Mounds View Economic Development Authority must issue revenue or general obligation bonds to pay for the (re)development prior to the completion of the project. The increment from the project is then used for repayment of the bonds. The Mounds View Economic Development Authority gives preference to the use of “pay as you go” assistance to finance private development projects due to the reduced risk to the community. The EDA will consider “up front” payment projects that would benefit the entire community and are not possible to be funded under a “pay as you go” basis. Within the City but outside of TIF Districts Financing from the dedicated tax increment fund can be provided in annual installments to the applicant based on the positive cash flow balance in the Economic Development Authority’s dedicated tax increment fund and need for assistance based on analysis of the “but for” test for the project. The dedicated tax increment fund includes a value based on the use and is adjusted along with the budget process and goals and objectives for economic and redevelopment on an annual basis. VI. ESTABLISHING A TAX INCREMENT FINANCE DISTRICT: New tax increment finance districts in the City of Mounds View will be established in accordance with applicable Minnesota State Statutes, the Tax Increment Finance Plan, and the Development District Plan. VII. ADMINISTRATION, POOLED FUNDS & PARCEL DECERTIFICATION: Administration Tax Increment Finance districts will be administered in accordance with applicable Minnesota State Statutes, the Tax Increment Finance Plan, and the Development District Plan. Pooled Funds Pooled funds are available when the current years increment exceeds existing obligations. In the past, funds have been allocated for low interest improvement loans, housing replacement, and Highway 10 redevelopment. The Mounds View Economic Development Authority will address the future use of pooled funds in the following manner: (1) view tax increment as a means secondary to programmatic objectives; (2) allocate all available pooled increment; and (3) the Economic Development Commission and Economic Development Authority decides on future development needs and uses TIF and/or other means to accomplish those ends. (4) in the event that the Economic Development Authority determines pooled increment should be returned to the respective taxing jurisdictions, the Economic Development Commission will evaluate the potential action and make a recommendation to the Economic Development Authority. To more effectively utilize pooled increment, the Economic Development Commission will recommend funding priorities to the Economic Development Authority. This will be done in conjunction with the annual budgetary process. At this time, potential parcels for decertification will also be examined Requests made for the use of pooled funds by a business or developer outside established TIF districts are discussed in sections IV and V. Parcel Decertification Parcels in Mounds View’s Tax Increment Finance districts will be decertified as required by and in 7 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. 8 IX. Attachment A: APPLICATION FOR TAX INCREMENT FINANCING A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following: • Brief description of the corporation/partnership’s business, including history, principal product or service, etc… Attach as Exhibit A . • Brief description of the proposed project. Attach as Exhibit B. • List names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. Attach as Exhibit C. • A but-for analysis. Attach as Exhibit D. Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email 9 B. PROJECT INFORMATION The project will be: ____Vacant Land Development ____New Construction ____ Expansion ____Commercial Redevelopment: ____New Construction ____ Expansion ____Industrial Redevelopment: ____New Construction ____ Rehabilitation ____Housing: ____New Construction ____ Rehabilitation ____Other The project will be: ___Owner Occupied ____Leased Space If leased space, please attach a list names and addresses of future lessees and indicate the status of commitments or lease agreements. Attach as Exhibit E. Project Address Legal Description Site Plan Attached: ____ Yes ____ No Building Square Footage: Number of Units if Applicable: Amount of Tax Increment Requested: Land $ Public Improvement $ Site Improvement $ Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: $ Construction Start Date: Construction Completion Date: If Phased Project: Year % Completed Year % Completed C. PUBLIC PURPOSE It is the policy of the City of Mounds View that the use of Tax Increment Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. ___Job Creation: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created ___New industrial development which will result in additional private investment in the area. ___The project contributes to the fulfillment of the City’s economic development and redevelopment goals ___Removal of blight. ___Rehabilitation of a high profile or priority site. ___Provision of Low and Moderate Income Housing. ___Other: 10 D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Equity $ Fed Grant/Loan $ State Grant/Loan $ Tax Increment $ ID Bonds $ Other $ TOTAL $ USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ Other $ TOTAL $ 11 E. ADDITIONAL DOCUMENTATION Applicants will also be required to provide the following documentation. ______ A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Three Years Profit & Loss Statement Balance Sheet C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date _______D) Two Year Projections F) Personal Financial Statements of all Major Shareholders if “Up Front” Financing is Requested Profit & Loss Current Tax Return _______G) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration _______H) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project _______I) Application fee of $5000 _______J) Additional information that will be helpful in evaluating your application Note: All Major shareholders will be required to sign personal guarantees if up front financing of the project is required. The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the Mounds View Economic Development Authority to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the Authority after the filing of this application. Applicant Name Date By Its 12 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)’s deposit to the extent permissible under the TIF Act. If (The Applicant) does not proceed with the redevelopment of the Property due to the decision of either the EDA or (The Applicant), the EDA shall reimburse the applicant for the unused portion of the deposit. Section 3. Nothing contained in this agreement shall in any way obligate either party to proceed with the redevelopment of the Property or otherwise enter into a Development Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 13 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY BY: Dan Coughlin ITS PRESIDENT BY: Michael Ulrich ITS EXECUTIVE DIRECTOR STATE OF MINNESOTA ) ) SS COUNTY OF ) 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 14 (The Applicant) BY: ITS: STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2000, by , the of (The Applicant) named in the foregoing instrument. Notary Public 15 XI. Attachment C: APPLICATION PROPOSAL REVIEW WORKSHEET REDEVELOPMENT DISTRICT 1. Ratio of Private to Public Investment in Project: Points: $ Private investment 4:1 5 $ Public Investment 3:1 4 Ratio of Private to Public Financing 2:1 3 1:1 2 Less than 1:1 1 2. Increase in Real Estate Value: Points: $ Value of Site before redevelopment 1:5+ 5 $ Value of site after redevelopment 1:4 4 $ Ratio of value before:after redevelopment 1:3 3 1:2 2 Less than 1:2 1 3. New Job Creation in the City of MoundsView: Points: Number of net new jobs as a result of the project. 50+ 5 Number of existing/retained jobs divided by 10. 30+ 4 Total 25+ 3 15+ 2 Less than 15 1 4. Ratio of TIF to new jobs created: Points: $ TIF request $15,000 or less 5 Number of new jobs created $20,000 or less 4 $ of TIF per new job created $22,000 or less 3 $25,000 or less 2 Over $25,000 1 5. Wage Level of jobs created: Points: Average hourly wage Over $21/ hour 5 of jobs created: $18 –21 / hour 4 $14-17 / hour 3 $10-13 / hour 2 Under $10 / hour 1 6. Project size: Points: The project will result in a net square Over 100,000 5 footage of 80,000+ 4 60,000+ 3 40,000+ 2 40,000 or less 1 16 7. Type of Project: Points: 100% Owner Occupied 5 Mix Owner Occupied & Investment 4 Investment Property 3 8. Use: Points: Industrial 5 Warehouse/Distribution 4 Commercial 3 Housing 3 9. The project will pay annual Points: property taxes in the first fully assessed 120,000+ 5 year of $ 80,000+ 4 60,000+ 3 40,000+ 2 20,000+ 1 Below 20,000 0 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 11. Bonus Points Bonus Points: The project will be 100% pay-as-you-go TIF. 3 points The project contributes to Highway 10 Redevelopment 3 points Total Points: Overall project analysis: High 50-43 points Moderate 42-34 points Low 33-26 points Not Eligible 25-0 points Sub - Total Points: of a possible 50 points. 17 XII. ATTACHMENT D: SAMPLE BUT-FOR ANALYSIS 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 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 288,061 Total Return on Equity 7.74% 12.00% N:\DATA\GROUPS\ECONDEV\TIF\Policy.DOC Item No. 5C Meeting Date: June 12th, 2000 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Economic Development Authority From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Authorize Economic Development Commission to examine Business Improvement Partnership Loan request Date of Report: August 7, 2018 Background: Approximately two weeks ago, Nicole Vohl contacted the city regarding the use of the Business Improvement Partnership Loan Program. Currently, Ms. Vohl and her mother are planning to lease space at 2888 County Road I for a coffee house. The space was previously used as a video rental store. The following highlights pertinent information related to the program: • Two percent interest loans are provided for interior and exterior improvements • In participation with a local bank, improvement a minimum loan of $10,000 and a maximum loan of $50,000 are provided. • The city participates in the program by providing ½ the loan amount at a 2% interest rate. In essence, the maximum level of city participation is $25,000 on a $50,000 loan. The remaining half is financed at conventional rates. • To be eligible, the applicant must have been a Mounds View business for at least two years. Admittedly, the program has not been used in recent years. In addition, one of the eligibility requirements is that the applicant has been a Mounds View business for at least two years. As a new business, the prospective applicant does not meet this criterion. Accordingly, preliminary consideration would require deviation from the existing requirements. Based on a discussion with Cindy Carlson of Western Bank, it looks as if they plan on spending $100,000+ for interior improvements and renovation etc... At this point, they have approximately $55,000 from a home equity loan, and are looking for a combination of bank financing/city financing for the remaining portion. While qualification for a home equity loan would indicate creditworthiness, a more detailed credit evaluation will be conducted in conjunction with the proposed bank financing. At this point, Ms. Vohl has not formally submitted an application for the program. Rather, conceptual approval is being requested. If the EDA is comfortable with the proposal in concept, direction authorizing the EDC to evaluate the prospective application on a more detailed basis would be appropriate. Based on the Community Development Department’s Work Plan, it is anticipated that the Business Improvement Partnership Loan Program will be evaluated in the future to better meet current community needs. Necessary Actions: Depending on the will of the EDA, authorize the EDC to examine the prospective loan application ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029