HomeMy WebLinkAboutAgenda Packets - 2000/06/05 (2)M:\MasterFiles\1999 thru 2010\2000\City Council\Work Session Packets\06-05-00\Agenda -- Work Session.doc
CITY OF MOUNDS VIEW
WORK SESSION
AGENDA
June 5, 2000
6:00 p.m.
Items Discussed
Per Consensus
_______ 1. Walgreens PUD - Jim Ericson, Rick Jopke
_______ 2. Mermaid Hotel and Banquet Center Expansion - Aaron Parrish
_______ 3. Council Call Special Meeting to Order at 8:00 pm to Consider the
Following Items:
A. Second Reading and Adoption of Ordinance No. 661, Charter
Amendments to Provide for a City Manager Form of Government
B. Second Reading and Adoption of Ordinance No. 662, Proposing
an Amendment to the Mounds View Charter By Amending
Chapter 2, Section 2.03 or the Charter as to Council
Composition and Election in the City.
C. Review and Discussion of City Hall Custodial Services – Michael
Ulrich
_______ 4. Tax Increment Finance Policy Revisions - Aaron Parrish
_______ 5. Consideration of Approval of First Tee Letter of Intent – John
Hammerschmidt
_______ 6. Preliminary Plans for New Park by Quincy / Hillview Area -- John
Hammerschmidt
_______ 7. Review of Public Comments Regarding the Pleasant View Drive Traffic
Signal - Michael Ulrich
_______ 8.
_______ 9.
Item No: 1
Meeting Date: June 5, 2000
Type of Business: WS
WK: Work Session; PH: Public Hearing;
CA: Consent Agenda; CB: Council Business
City of Mounds View Staff Report
To: Honorable Mayor & City Council
From: James Ericson, Planner
Item Title/Subject: Discussion Regarding the Proposed Walgreens
Planned Unit Development at the Northeast corner
of Edgewood Drive and Highway 10
Date of Report: June 1, 2000
Background:
Bob Cunningham, representing Meridian Properties Redevelopment, LLC., doing
business as TOLD Development Company, will present to the Council the draft plans
for the redevelopment of the northeast corner of Edgewood Drive and Highway 10.
The plans indicate the construction of a Walgreens Drugstore and a Culvers
Restaurant.
Discussion:
The development proposal contemplates a swap of land between TOLD and the City.
Simply put, the City would receive approximately 7.7 acres of the Midland Videen site
in return for the City’s remnant parcel, which is approximately 2/3 of an acre. Of the
7.7 acres received by the City, approximately three acres are upland and potentially
developable. Within the upland area, it would be proposed that the City’s stormwater
pond would be relocated and resized to accommodate more runoff and to help reduce
potential flooding that may occur downstream south of Highway 10. In addition to
the relocated stormwater pond, the pond adjacent to the Community Center would be
expanded to provide more of a community surface water management benefit. It is
further proposed that the developer would construct a paved trail that would encircle
the wetlands, connecting to both the Community Center and the proposed
development. The 7.7 acres would be utilized as passive outdoor open space,
preserving and enhancing the natural and scenic value of this wetland as well as to
preserve the wildlife habitat and to improve the City’s surface water management
system.
In order for the Walgreens Planned Unit Development to proceed, the site would need
to be replatted to create the two development parcels. In so doing, the Community
Center would become one parcel, as would the City Hall / Public Works land. The
wetlands would be platted as an outlot. In conjunction with the replatting, the right
of ways for Edgewood Drive and Bronson Drive would be dedicated. In addition, the
right of way for the original Edgewood Drive would be vacated and any utility
easements vacated or relocated as needed.
Planned Unit Developments necessitate public hearings at both the concept and
development review stages of the process. Assuming the site plan is consistent with
Linder=s CUP Request
Planning Case No. 548-99
March 22, 1999
Page 2
the City’s and community’s desires, the concept and development stages may be
combined, in which case only one public hearing would be required.
Linder=s CUP Request
Planning Case No. 548-99
March 22, 1999
Page 3
The City Attorney is drafting a Development Contract regarding this project that will
spell out all of the details and requirements of this project. In addition, a PUD
document will be drafted that addresses the specific site improvements and any
conditions and or stipulations attached to the project.
Rather than attaching the proposed plans electronically, staff will provide the Council
with a full set of the plans in a reduced 8 1/2 x 11 format in your box (hopefully) no
later than Friday, June 2, 2000.
Recommendation:
This item is being brought to the Council’s attention for information purposes only, no
approvals are being requested at this time. The applicant is scheduled to appear
before the Planning Commission on Wednesday, June 7, 2000, for which a public
hearing has been set. However, if the Council has any issues or concerns regarding
the proposed development, staff is requesting that they be discussed at the
worksession to allow for any revisions to be made to the plans prior to Planning
Commission review.
Please contact Rick or myself prior to the meeting if you have specific questions that
need to answered.
James Ericson, Planner
Linder=s CUP Request
Planning Case No. 548-99
March 22, 1999
Page 4
E:\DATA\GROUPS\COMDEV\DEVCASES\MA001-001, ZC00-002, DE00-002\Walgreens Staff Report -- June 5, 2000.doc
Item No. 2
Meeting Date: June 5th, 2000
Type of Business: WS
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: Mermaid Hotel and Banquet Center Pay-As-You-Go TIF Request
Date of Report: August 29, 2018
Background:
Currently, the Mermaid is proposing a 96 room hotel and 500+ person banquet facility. The
proposed expansion/addition represents a substantive redevelopment of the project area. The area
is highlighted below:
As the map above highlights, the Mermaid has acquired the adjacent land necessary to proceed
with their project. Previously, it was discovered that Perkins would not be renewing their lease with
the current land owner. It is anticipated that they will be closing sometime around October. The
Music Off 10 / Business Park site has also been acquired. To make the site contiguous, the access
to the Business Park will be relocated west toward the existing Pettibone (aka Builder’s Equipment
Company) site.
From a financial perspective, the Mermaid has secured financing from the investment firm John G.
Kinnard & Company. In February, city staff had the opportunity to meet a representative from
Kinnard, along with the Mermaid’s attorney, architectural, appraisal, and engineering consultants.
Pay-as-you -go Tax Increment Finance Request:
Last week, the Mermaid submitted an application requesting pay-as-you -go tax increment finance
assistance from the city. Subsequently, the Economic Development Commission reviewed and is
recommending preliminary approval of the aforementioned application. The application process is
as follows:
1. Applicant submits the completed application and Deposit Agreement. -Completed
2. City staff reviews the application and completes the Application Review Worksheet. -
Completed
3. Results of the Worksheet are submitted to the appropriate governing authorities for
preliminary approval of the proposal. –In Progress
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. The Economic Development Authority holds necessary public hearings and considers
final approval of the proposal.
At this point, we are in the preliminary approval stage of the application process. If preliminary
approval is granted, city staff will then negotiate the appropriate agreements and amendments to
the TIF plan for final consideration by the Economic Development Authority.
As previously mentioned, the proposal before the Council at this time is for pay-as-you-go TIF
assistance. This is contrasted with up-front financing where the city issues bonds that are repaid
with the increment generated by the project. When compared to up-front financing, pay-as-you-
go financing poses significantly less risk to city.
Based on the evaluation tool contained within the existing TIF policy adopted in 1997, the
Mermaid scored favorably. The overall results are as follows:
10 Years* 21 and Over (23)
7 Years* 17-20
5 Years* 14-16
3 Years* 11-13
0 Years 0-10
TTeerrmm ooff AAssssiissttaannccee PPooiinntt VVaalluuee
Overall, the Mermaid scored a 23, on the current evaluation tool. This places the Mermaid’s
project in the highest bracket. Later in the evening, the Council will consider revisions to the
existing TIF policy. In conjunction with the proposed changes, a new evaluation tool will be
considered. Based on the proposed evaluation tool, the Mermaid’s project scored in the
following manner:
Utilizing the proposed evaluation tool, the project scored 41.5, or on the high end of the
moderate ranking. Specific strengths and weaknesses from both evaluations will be further
discussed at the Work Session.
The amount of assistance actually provided will be directly related to the assessed market value of
the improvements upon completion of the project. For calculation purposes, a valuation of $6.7
million and $7.45 million have been used to determine the “projected increment.” If the Council
decides to give preliminary approval to the application, the level of assistance not to be exceeded
and the term in which assistance to be provided will also need to be discussed. The following
highlights the proposed terms of TIF assistance based on information contained within the
Mermaid’s application and staff analysis:
TTeerrmm:: 90 % of Increment for the Duration of the District
PPrroojjeecctteedd
IInnccrreemmeenntt:: Estimated at $2.0-$2.5 Million
For your reference, a copy of the application will be placed in your boxes. However, the 30 plus
pages of exhibits and attachments have not included, but can be made available upon request.
Representatives of the Mermaid and their attorney will also be on hand to address any questions
that you may have.
Necessary Actions:
Review and comment on the Mermaid’s TIF Application
______________________________________
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
25-0 points Not Eligible
33-26 points Low
42-34 points (41.5) Moderate
50-43 points High
PPooiinntt VVaalluuee RRaannkkiinngg
Item No. 4
Meeting Date: June 5th, 2000
Type of Business: WS
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 29, 2018
Background:
Back in August, the Economic Development Authority discussed the City’s TIF Policy on a general
level, and more specifically, the decertification of particular parcels within existing districts was
examined. Before any action was taken, the EDA directed the EDC to examine the TIF Policy as it
relates to the aforementioned matters.
Attached you will find proposed revisions to the existing TIF policy and its’ associated documents.
Changes have been placed in italics for your reference. Based on input from the Economic
Development Commission, the following is a synopsis of significant proposed changes/additions for
the policy.
• A section entitled “Administration, Pooled Funds, and Parcel Decertification” has been added to
the policy. The language associated with the “Administration” component is relatively
straightforward. In essence, it indicates that TIF funds/districts will be administered in
accordance with applicable statutes and local policy.
The section entitled “Pooled Funds” articulates policy related to the use of what is commonly
referred to excess increment. Provisions for the disbursement of pooled funds, TIF revenue
above and beyond existing obligations, are also outlined.
With regard to “Parcel Decertification,” it was the position of the Economic Development
Commission that parcels should only be decertified based on applicable state statute. If it is the
desire of the EDA to return revenue to the respective taxing jurisdictions, this should be done on
annual basis in conjunction with the budgetary process. In the event that EDA desires to
decertify a parcel, there are provisions within the policy highlighting a procedure for doing so.
• 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.
• “Attachment D: Sample But-For Analysis” has been added to clarify our expectations as it relates
to the “But-For” test.
Necessary Actions:
Review the TIF Policy contained on pages 3-17.
______________________________________
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
M:\MasterFiles\1999 thru 2010\2000\City Council\Work Session Packets\06-05-00\Item No. 04--Tax Increment Finance Policy
Revisions--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.
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 EDAs
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 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
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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.
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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