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Home My WebLink About10-03-2012 PLANNING COMMISSION REGULAR MEETING AGENDA October 3, 2012 -- 7:00 P.M. 1. Call to Order 2. Roll Call 3. Approval of Minutes: August 15, 2012 4. Citizens Requests and Comments Relating to Planning and Zoning Issues Not Already on the Agenda. (Before speaking, please give your full name and address for the record.) 5. Planning Cases A. VR2012-005: Consideration of a Variance for Reduced Driveway Setback Applicant: Ryan Meyer, JRM Estates, Inc. Address: 8155 Red Oak Drive 6. Other Planning Activity A. Modification to the Project Plan for the Mounds View Economic Development Project and TIF Districts Nos. 1, 2 and 3 7. Next Planning Commission Meetings: A. October 17, 2012 B. November 7, 2012 8. Adjourn to Agenda Session AGENDA SESSION 1. Review Minutes: a. September 5, 2012 2. Staff Reports a. Upcoming Planning Cases 3. Chairperson and Planning Commissioners’ Reports 4. Meeting Conclusion PROCEEDINGS OF THE MOUNDS VIEW PLANNING COMMISSION CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting September 5, 2012 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 ______________________________________________________________________________ 1. Call to Order The meeting was called to order by Chair Stevenson at 7:00 p.m. for September 5, 2012. ______________________________________________________________________________ 2. Roll Call Members Present: Commissioners Cramblit, Meehlhause, Miller, Rundle, Schiltgen, Stevenson and Smith. Absent and Excused: None. Also Present: ______________________________________________________________________________ Planning Associate Heidi Heller. Index to Minutes Page Approval of Minutes 1 VR2012-004. Consideration of a Variance for Reduced Parking Lot 2 Setbacks at Tires N’ More _____________________________________________________________________________ 3. Approval of Minutes August 1, 2012. MOTION/SECOND: Commissioner Cramblit/Commissioner Rundle. To approve the Minutes of the August 1, 2012 regular Planning Commission meeting as slightly amended. Ayes – 7 Nays – 0 Motion carried. Mounds View Planning Commission September 5, 2012 Regular Meeting Page 2 ________________________________________________________________________ 4. Citizens Requests and Comments on Items Not on the Agenda None. ______________________________________________________________________________ 5. Planning Cases A. VR2012-004 Consideration of a Variance for Reduced Parking Lot Setbacks at Tires N’ More Applicant: Tires N’ More – Naoufel Soussi Address: 2832 County Road 10 Planning Associate Heller indicated Naoufel Soussi with Tires N’ More at 2832 County Road 10 would be installing a new parking lot with curb and gutter. The applicant is requesting variances for reduced parking lot setbacks on three sides of the property. The previous owners of the building had originally intended to redevelop the property along with the CVS development in 2005, and were working with Velmeir (the CVS developer) on improving the parking lot and sharing the County Road 10 driveway access. Associate Heller explained the applicant’s rear parking lot was removed by Velmeir in anticipation of reconstruction that would be done with CVS’s parking lot. The previous owner did not sign off on the plans, so Velmeir did not complete the 2832 County Road 10 building’s parking lot and it remains uncompleted. Associate Heller commented Mr. Soussi purchased the property at 2832 County Road 10 and will be using the existing building, which does not have its own access to County Road 10. There are driveway and parking easements in place with both the Simon’s building at 2840 County Road 10 and CVS at 2800 County Road 10. Associate Heller stated the Tires N’ More building is not sitting parallel to County Road 10, which means there is an angle to the front property line. The front parking lot is quite small and not safe to have more than one vehicle maneuvering at a time. The applicant will primarily use the CVS County Road 10 driveway for access to the business. Customers would enter and exit from this location and park in the rear of the building. Customers would then use the sidewalk along the east side of the building to walk to the front door of the store. She discussed the location of the storm pond on the site noting the pond served both Tires N’ More and CVS. Associate Heller explained that the building currently has asphalt only in the front and along the west side of the building, and both of these areas are paved up to the property line. The applicant has requested a five (5) foot setback for the front parking lot, which would match the five (5) foot parking lot setbacks at CVS. Staff reviewed the requested setbacks in further detail with the Commission for each side of the property. Associate Heller stated that staff has been in contact with the attorney representing the property owner of 2800 County Road 10 JK & SK MN, LLC. JK & SK MN, LLC does not want the applicant using any of their property that is not included in the easement agreements. Mr. Soussi will need to modify the original plan and have agreement from JK & SK MN, LLC before the Mounds View Planning Commission September 5, 2012 Regular Meeting Page 3 ________________________________________________________________________ City will approve any variances for the east property line. She recommended the Commission discuss the item in detail, open the Public Hearing and table the item until to the September 19, 2012 meeting where further information will be available on the modified plan between Tires N’ More and CVS. Commissioner Cramblit was in favor of a zero lot line and a retaining wall along the front of the east side rather than have a small island. Naoufel Soussi, 2832 County Road 10, stated this may benefit the property and a small retaining wall could be built to separate the properties. Associate Heller reviewed several photos of the site with the Commission. Commissioner Meehlhause questioned if access to the site would be confusing given the numerous access points to the site. He suggested the traffic flow in from one side and exit from the other. Associate Heller commented directional signs would be needed to direct customers to the rear of the building. Mr. Soussi discussed the layout of his Fridley location stating it was similar to this site noting directional signs would assist in directing clients to the entrance. Commissioner Meehlhause asked if the parking in the front should be eliminated all together. Mr. Soussi noted parking in the front would be very short term. Commissioner Smith inquired how many customers were anticipated to be onsite at any given time. Mr. Soussi stated at most there may be six cars during a busy time, but on average two to three cars. He noted the employees would be parking in the rear of the building. Commissioner Miller questioned how many people would be employed at this location. Mr. Soussi stated there would be five employees at the Mounds View Tires N’ More. Commissioner Smith recommended the exiting traffic from the Tires N’ More property only be allowed to make a left to assure that traffic went directly to County Road 10 and not behind the CVS building to Silver Lake Road. The Commission agreed with this suggestion. Chair Stevenson understood CVS’s concerns with traffic flowing through their parking lot to Silver Lake Road. Mounds View Planning Commission September 5, 2012 Regular Meeting Page 4 ________________________________________________________________________ Associate Heller commented the City could not regulate the flow of traffic through the parking lot. Chair Stevenson questioned the likelihood of having the modified plans completed by the September 19th meeting. Associate Heller stated that Mr. Soussi was willing to revise his plans but it would likely take until at least the October 3rd meeting to get the modified plan and hear back from the adjacent owner’s representative. Chair Stevenson recommended the applicant consider putting a retaining wall between the two properties on the east property line which would allow the driveway along the east side of the building to be wider. Associate Heller indicated this could be considered through the new plans. She noted the retaining wall may be a concern in the winter months for plow trucks. Commissioner Cramblit did not object to the requested setbacks. Commissioner Meehlhause questioned where the trash receptacles would be located. Mr. Soussi described the general proposed location in the rear of the building. He commented the exact area would be finalized after the parking lot issues were resolved, and the dumpster enclosure built after the parking lot is constructed. Chair Stevenson opened the public hearing at 7:38 p.m. Chair Stevenson recommended the Commission table action on the item and hold the public hearing open to the September 19, 2012 meeting or whenever this was brought back to the Commission. MOTION/SECOND: Chair Stevenson/Commissioner Cramblit. To table the Tires N’ More request to the September 19, 2012 Planning Commission meeting or until the modified plans were ready for review. Planning Case No. VR2012-004. Ayes – 7 Nays – 0 Motion carried. ______________________________________________________________________________ 6. Other Planning Activity None. ______________________________________________________________________________ Mounds View Planning Commission September 5, 2012 Regular Meeting Page 5 ________________________________________________________________________ 7. Next Planning Commission Meetings: A. September 19, 2012 B. October 3, 2012 ______________________________________________________________________________ 8. Adjournment to Agenda Session There being no further business before the Planning Commission, Chair Stevenson adjourned the meeting at 7:41 p.m. ______________________________________________________________________________ (The meeting immediately adjourned to the Agenda Session) Respectfully submitted, Heidi Heller Planning Associate Transcribed by: Heidi Guenther, TimeSaver Off Site Secretarial, Inc. Item No: 5A Meeting Date: October 3, 2012 Type of Business: Public Hearing City of Mounds View Staff Report To: Mounds View Planning Commission From: Heidi Heller, Planning Associate Item Title/Subject: Consideration of a Variance to allow a 4-foot Driveway Setback at 8155 Red Oak Drive; Planning Case VR2012-005 Introduction: The applicant, Ryan Meyer with JRM Estates, Inc., property owner of 8155 Red Oak Drive is requesting a variance to allow the driveway to have a 4-foot setback. The City Code requires a five foot setback for driveways without a variance. Discussion: 8155 Red Oak Drive is a 51-foot wide lot with a very small existing home. The City Code requires that interior lots be a minimum of 75 feet wide, but there are a few in the city that are narrower. The applicant recently purchased the property and plans to demolish the existing home and build a new one. There is an existing single car garage on the south side of the lot which the applicant plans to keep and there will be an attached garage on the rear of the home. The applicant would like to keep the driveway in the existing location since it lines up with the existing garage and the new street apron, and there is a large tree that would have to be removed if the driveway were moved further north. Also, since the lot is much narrower than most, in order to meet the setbacks for living space (10 feet) and have a 12-foot wide driveway, the house is limited to 28 feet wide. The Zoning Code states that the Planning Commission may issue a variance to provide relief to the landowner in those cases where the Code imposes practical difficulties to the property owner in the use of the property owner’s land. This is true for all variance requests. State statutes require that the governing body review a set of specified criteria for each application and make its decision in accordance with these criteria. These criteria are set forth in Section 1125.02, Subdivision 2, of the City Code. A variance may be granted only in the event that all of the following circumstances exist: a. The variance is in harmony with the general purposes and intent of these regulations. The zoning code requires minimum driveway setbacks for aesthetics and to provide separation and some sense of privacy between neighbors. The required setbacks typically can be met, but this lot is 24 feet narrower than is required which is causing the difficulty. The existing house was built in 1938 and the driveway location has likely existed with a 4-foot setback since then. b. The variance is consistent with the Comprehensive Plan. The Comprehensive Plan supports improvements to properties, and certainly encourages new home construction. 8155 Red Oak Drive Driveway Variance Report October 3, 2012 Page 2 c. The applicant proposes to use the property in a reasonable manner not permitted by this Title or the City Code. The applicant is asking for the driveway to remain as it has been for many years, with a 4-foot setback rather than the required 5-foot setback. If the lot was the typical 75 feet wide, there would not be a problem meeting the setback. A 12-foot wide driveway is the minimum width that is desired, particularly since the driveway runs next to the house. d. Unique circumstances apply to the property which do not apply to other properties in the same zone or vicinity and result from lot size or shape, topography or other circumstances over which the owner of the property since the enactment of this Title has had no control. The unique circumstances do not result from the actions of the applicant. The unique feature of this lot is how narrow it is. There are only a few properties in the city that are not the required 75 feet wide. The property owner purchased the property with the current dimensions. The owner would also like to keep a large healthy tree that would need to be removed in order to move the driveway further to the north. e. The variance does not alter the essential character of the neighborhood. This driveway has been in the same location for many years, so there will be no change to the existing character of the neighborhood. f. The variance requested is the minimum variance which would alleviate the practical difficulties. Economic conditions alone do not constitute practical difficulties. The 1 foot variance is the minimum variance needed since that is what the Zoning Code requires for a driveway setback. g. The Planning Commission may impose such conditions upon the premises benefited by a variance as may be necessary to comply with the standards established by this Title or to reduce or minimize the effect of such variance upon other properties in the neighborhood, and to better carry out the intent of the variance. The condition must be directly related to and must bear a rough proportionality to the impact created by the variance. Staff does not have any suggested conditions. A zoning permit must be applied for if the driveway is reconstructed. 8155 Red Oak Drive Driveway Variance Report October 3, 2012 Page 3 Public Hearing: As with any requested variance, this application requires a public hearing. Staff mailed notices to all property owners within 350 feet of the applicant’s property and a notice was published in the Sun Focus newspaper on Thursday, September 20, 2012. Staff has not received any comments as of September 27, 2012. Recommendation: Staff recommends holding the public hearing and taking testimony from staff, the applicant and the public. The Commission may take one of the following actions related to the request: 1. Approve the variances as requested. Resolution 972-12 is attached for action if the Commission so chooses. 2. Deny the requested variances. The Commission should direct staff to draft resolutions of denial with findings appropriate to support the denials. 3. Table the request. If the Planning Commission needs more information before making a decision or if they decide there is a need for more discussion, the Commission can simply move to table the request until such information has been provided. Respectfully Submitted By, Heidi Heller Planning Associate Attachments: 1. Zoning Map 2. Aerial Photos 3. Photographic Documentation 4. Statement from Applicants 5. Proposed Site Plan 6. Resolution 972-12 ZONING MAP * Properties not indicated with a designation are zoned R-1, Single Family Residential Statement from applicant – Cory Mathiowetz N Abiding Savior Church Aerial View Existing Garage to remain Photographic Documentation 8155 Red Oak – brown house Garage that will remain Large tree that could be damaged if driveway were moved over Statement from Applicant Proposed New House Floorplan – Main Floor Proposed New House Floorplan – Second Floor MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 972-12 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING A VARIANCE FOR A DRIVEWAY WITH A FOUR-FOOT SETBACK AT 8155 RED OAK DRIVE; PLANNING CASE VR2012-005 WHEREAS, the applicant, Ryan Meyer, JRM Estates, Inc., property owner of 8155 Red Oak Drive, has applied for a variance to allow the driveway to have a 4-foot setback; and, WHEREAS, 8155 Red Oak Drive is zoned R-1, Single Family Residential, and is legally described as follows: That part of the Northeast Quarter of Section 6, Township 30 North, Range 23 West of the Fourth Principal Meridian, described as follows: Beginning at a point 528 feet East of the West line and 405 feet North of the South line of said Northeast Quarter; thence North parallel with the West line of said Northeast Quarter a distance of 51 feet; thence East parallel with the South line of said Northeast Quarter a distance of 528 feet; thence South parallel with the West line of said Northeast Quarter a distance of 51 feet; thence West parallel with the South line of said Northeast Quarter a distance of 528 feet to the point of beginning, EXCEPT the following described tract of land, to-wit: The East 250 feet of the following: The North 51 feet of the South 456 feet of the East 528 feet of the West 1,056 feet of the Northeast Quarter of Section 6, Township 30, Range 23, Ramsey County, Minnesota PIN 06-30-23-13-0018 WHEREAS, the Mounds View Planning Commission has reviewed the following documents regarding this proposal: 1. Zoning Map 2. Aerial View 3. Site Plan 4. Photographic Documentation 5. Staff Report WHEREAS, the purpose of the variance provision in the Zoning Code is to give relief to property owners when the strict enforcement of the zoning code requirements imposes a hardship thereby restricting the improvement of property due to practical difficulties brought about by unique or extraordinary features of the physical property that are beyond the property owner’s control; and, WHEREAS, the Planning Commission held a duly-noticed public hearing regarding this request on October 3, 2012; and, WHEREAS, according to Section 1125.02, Subdivision 2 of the Mounds View Municipal Code, the Planning Commission is to review a standard set of criteria, of which all must be satisfied, in order to grant a variance to the Zoning Code. Photographic Documentation Driveway/parking area concrete extension running along the side of garage Resolution 972-12 Page 2 NOW, THEREFORE, BE IT RESOLVED, the Mounds View Planning Commission finds that the criteria as identified in Section 1125.02, Subdivision 2 of the Mounds View Municipal Code are satisfied and finds there to be sufficient practical difficulty with regard to the property located at 8155 Red Oak Drive, and makes the following findings of fact related to its decision: 1. The general intent of the Zoning Code regarding setbacks is to create physical separation between driveways for aesthetics and a sense of privacy for the property owners. The requested setback is the same that has existed for many years. 2. The variance is consistent with the Comprehensive Plan in that the applicant is improving the property. 3. The applicant is requesting this variance because of the narrow lot width, and because the driveway lines up with the existing curb cut apron and leads to the existing garage that is going to remain in place. 4. The unique feature of this property is that it is only 51 feet wide. The City Code requires a minimum width of 75 feet. There are very few properties in the city that are not at least 75 feet wide. 5. The driveway has been in the same location with a 4-foot setback for many years, so there will be no change to the existing character of the neighborhood. 6. The 1-foot variance is the minimum variance required to alleviate the applicant’s practical difficulty since that is what the zoning code requires for driveway setbacks. 7. The Planning Commission may impose conditions upon the premises as may be necessary to comply with city standards and to minimize the effect of such variance upon other properties in the neighborhood. NOW, THEREFORE, BE IT FINALLY RESOLVED, the Mounds View Planning Commission, based upon the above findings, approves the variance request of Ryan Meyer, JRM Estates, Inc., property owner of 8155 Red Oak Drive, to allow a driveway to have a 4-foot setback, subject to the following: 1. The applicant must receive a zoning permit if the driveway is reconstructed. Adopted this 3rd day of October, 2012. _________________________________ Gary Stevenson, Chair ATTEST: __________________________________ James Ericson, City Administrator (SEAL) Item No: 6A Meeting Date: October 3, 2012 Type of Business: Other Planning Activity City of Mounds View Staff Report To: Planning Commission From: Heidi Heller, Planning Associate Item Title/Subject: Modification to the Project Plan for the Mounds View Economic Development Project and TIF Districts Nos. 1, 2 and 3 The City is modifying the above referenced project plan and TIF plans in order to identify parcels that the City would like to acquire through the use of tax increment generated from these districts for redevelopment purposes. It should be noted that the City is not increasing the budgetary authority in the TIF plans and/or expanding the boundaries of the TIF districts. Since many of the parcels identified for acquisition are located outside of the TIF districts, but within the development project, the City is required to go through the entire public hearing process, as if it were creating a new TIF district. As part of that process, the Planning Commission needs to make the determination that the development plan (acquisition of these parcels for redevelopment) conforms to the general development and redevelopment of the City as described in the Comprehensive Plan for the City. By approval of the resolution, the Planning Commission concurs that the potential redevelopment of various sites within the City meets the objectives in the Comprehensive Plan. A map illustrating the identified parcels will be presented at the meeting. Sincerely, Heidi Heller Planning Associate Attachments: 1. Mounds View Economic Development Project Map 2. Resolution 971-12 3. Modification to the Tax Increment Redevelopment Plans for Tax Increment District No. 1 4. Modification to the Tax Increment Redevelopment Plans for Tax Increment District No. 2 5. Modification to the Tax Increment Redevelopment Plans for Tax Increment District No. 3 Mounds View Economic Development Project Modification No. 9 October 2012 MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 971-12 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION OF THE CITY OF MOUNDS VIEW PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE PROJECT PLAN FOR THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT AND MODIFICATIONS TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 1, 2, AND 3 CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the Mounds View Economic Development Authority and the City of Mounds View have proposed to adopt a Modification to the Project Plan for the Mounds View Economic Development Project (the "Project Plan Modification") and Modifications to the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1, 2 and 3 (the "TIF Plan Modifications") therein (the Project Plan Modification and the TIF Plan Modifications are referred to collectively herein as the "Modifications") and have submitted the Modifications to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.027 and 469.126, and WHEREAS, the TIF Plan Modifications are being completed to authorize the City and the Economic Development Authority to acquire parcels within the Mounds View Economic Development Project area. WHEREAS, the Commission has reviewed the Modifications to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Modifications conform to the general plans for the development and redevelopment of the City as a whole. Adopted this 3rd day of October, 2012. _____________________________________ Gary Stevenson, Chair ATTEST: _____________________________________ James Ericson, City Administrator (SEAL) Modification to the Tax Increment Redevelopment Plans for Tax Increment District No. 1, (a redevelopment district) within the Mounds View Economic Development Project Mounds View Economic Development Authority City of Mounds View Ramsey County State of Minnesota Originally Adopted: September 22, 1986 Modification No. 1 Adopted: January 11, 1988 Modification No. 2 Adopted: June 12, 1989 Modification No. 3 Adopted: March 26, 1990 Modification No. 4 Adopted: May 9, 1994 Modification No. 5 Adopted: April 14, 1997 Modification No. 6 Adopted: August 14, 2000 Modification No. 7 Adopted: November 13, 2000 Modification No. 8 Adopted: June 28, 2004 Modification No. 9 Public Hearing Date: October 8, 2012 Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com As of September 25, 2012 Draft for Planning Commission City of Mounds View TIF District No. 1 Modification 1 | P a g e Tax Increment Redevelopment District No.1 Finance Plan INTRODUCTION (AS MODIFIED NOVEMBER 2000) The following is a modification to the Tax Increment Redevelopment Plan (the “Plan”) for Tax Increment District No. 1. Generally, there are no substantive modifications to the Tax Increment Plan for Tax Increment Financing District No. 1. The purpose of the modification is to attempt to bring the Plan into compliance with the Office of the State Auditor requirements as they are understood at this point in time. The following subsections are being modified in an attempt to clarify the Plan and clarify and restate the budgets in the office of the State Auditor’s required format. (AS MODIFIED OCTOBER 8, 2012) Tax Increment Redevelopment District No. 1 is being modified by the City Council to authorize acquisition of parcels within the Mounds View Economic Development Project. The EDA and the City desire to continue redevelopment and development of blighted, foreclosed and underdeveloped property in the City. New redevelopment opportunities have arisen in areas located outside of Tax Increment Financing District No. 1 and within Mounds View Economic Development Project area. The proposed redevelopments will allow the City to acquire, rehabilitate, and/or demolish existing residential and commercial units, relocate existing businesses and residents, make necessary site improvements and resell the rehabilitated homes and/or vacant residential or commercial lots for development and allow the City to make necessary public improvements to roadways, sidewalks and utilities as required. A. Statutory Authority The City of Mounds View is authorized to establish a tax increment district pursuant to Minnesota Statutes, Section 273.71-78. (AS MODIFIED JUNE 1989) The City of Mounds View is authorized to modify a tax increment district pursuant to Minnesota Statutes, Sections 469.174 to 469.179. B. Statement of Objectives See Part I, Section F, Subsection 1 of this report. City of Mounds View TIF District No. 1 Modification 2 | P a g e C. Development Program 1. Description of Development Activities The development program will consist of a 231,000 square foot office/service center, 481,000 square foot warehouse and 4,000 square foot restaurant. As such, a four-phased construction buildout of new commercial/industrial development approximating 716,000 square feet will commence in 1987. The developer will be assisted with a portion of the public improvement costs in addition to land acquisition costs through tax increments generated as a result of these developments. 2. Development Activities Covered by Contracts There are no development activities under contract at the present time. 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project As a part of the City's overall revitalization program within the redevelopment district, the development program provides for future new construction of other commercial/industrial projects within the development district area. The future development would be dependent upon the availability of public funds. 4. Also, see Part I, Section F of this report. (AS MODIFIED JUNE 12, 1989) 1. Description of Development Activities The development program will consist of 270,000 square feet of high quality light industrial facilities with the flexibility of use for manufacturing, assembly, warehouse storage and office. As such, a multi-phased construction buildout of new commercial/industrial development approximating 175,000 square feet will commence in 1989 and the remainder in the following phases. The developer will be assisted with public improvement costs in addition to land acquisition costs through tax increments generated as a result of these developments. 2. Development Activities Covered by Contracts There are no development activities under contract at the present time in the proposed Mounds View Business Park South. 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project As a part of the City’s overall revitalization program within the redevelopment district, the development program provides for future new construction of other commercial/industrial projects within the development district area. The future development would be dependent upon the availability of public funds. City of Mounds View TIF District No. 1 Modification 3 | P a g e (AS MODIFIED MARCH 26, 1990) 1. Description of Development Activities The development program will consist of 326,000 square feet of high quality light industrial facilities with the flexibility of use of manufacturing, assembly, warehouse storage and office. As such, a multi-phased construction build out of new commercial industrial development approximating 150,000 square feet will commence in 1990 and the remainder of the following phases. The developer has been assisted with public improvements costs in addition to land acquisition costs through tax increments generated as a result of these developments. It has also been proposed to develop a scatter site rehabilitation program utilizing tax increment for this district. Objective would include but not be limited to the acquisition of substandard buildings that are economically feasible to rehabilitate or acquisition of substandard residential buildings that are not feasible for rehabilitation, clear the structures and provide the site for new construction. The program could be expanded to smaller commercial locations within the Municipal Development District. A more detailed program will be developed when sufficient tax increments are available. No properties have been identified at this time. 2. Development Activities Covered by Contracts There are no development activities under contract at the present time in the proposed Mounds View Business Park, Third Addition. D. Description of Property in the Tax Increment Financing District The tax increment financing district encompasses the parcels in the redevelopment district identified in Appendix C. (AS MODIFIED ON OCTOBER 8, 2012) See Appendix "A" of this report for a list of the property located in the Tax Increment District. E. Classification of the Tax Increment Financing District The City Council of the City of Mounds View, Minnesota, in determining the need for a tax increment financing district in accordance with Minnesota Statutes, Sections 273.71-273.78 inclusive, finds that the district to be established is a redevelopment district pursuant to Minnesota Statutes Section 273.73, Subdivision 10. It has been determined that 15 of the parcels in the district (71 percent) are occupied by buildings, streets, utilities or other improvements and 27 percent of the buildings are structurally substandard and an additional 40 percent of the buildings are found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, City of Mounds View TIF District No. 1 Modification 4 | P a g e excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to health, safety and general well-being of the community. The 15 structures on the 21 parcels of land constituting the redevelopment district have been investigated by consultants. Four of the 15 buildings are deteriorated and structurally substandard to a degree requiring clearance and 6 other structures are found to require substantial renovation in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well-being of the community. Thus, the tax increment financing district appears to meet the statutory requirements of a redevelopment district and will henceforth be referred to as a redevelopment tax increment financing district. The parcels that have been used to establish eligibility as a redevelopment tax increment financing district are listed in Appendix C. (AS MODIFIED JUNE 12, 1989) The City Council of the City of Mounds View, Minnesota, in determining the need for a tax increment financing district and modification in accordance with Minnesota Statutes, Sections 469.174-469.179 inclusive, finds that the district to be modified is a redevelopment district pursuant to Minnesota Statutes Section 469.174, Subdivision 10. It has been determined that 18 of the parcels in the district (72 percent) are occupied by buildings, streets, utilities or other improvements and 22 percent of the buildings are structurally substandard and an additional 44 percent of the buildings are found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to health, safety and general well - being of the community. The 18 structures on the 25 parcels of land constituting the redevelopment district have been investigated by consultants. Four of the 18 buildings are deteriorated and structurally substandard to a degree requiring clearance and 8 other structures are found to require substantial renovation in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well-being of the community. Thus, the modified tax increment financing district appears to meet the statutory requirements of a redevelopment district and will henceforth be referred to as a modified redevelopment tax increment financing district. The parcels that have been used to establish eligibility as a redevelopment tax increment financing district are listed in Appendix C. (AS MODIFIED MARCH 26, 1990) The City Council of the City of Mounds View, Minnesota, in determining the need for a tax increment financing district in accordance with Minnesota Statutes, Sections 469.174- 469.179 inclusive, finds that the district to be established is a redevelopment district pursuant to Minnesota Statutes Section 469.174, Subdivision 10. It has been determined that 7 of the parcels in the district (70 percent) are occupied by buildings, streets, utilities or City of Mounds View TIF District No. 1 Modification 5 | P a g e other improvements and 28 percent of the buildings are structurally substandard and an additional 71 percent of the buildings are found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to health, safety and general well-being of the community. The 7 structures on the 10 parcels of land constituting the redevelopment district have been investigated by consultants. Two of the 7 buildings are deteriorated and structurally substandard to a degree requiring clearance and 5 other structures are found to require substantial renovation in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well-being of the community. Thus, the tax increment financing district appears to meet the statutory requirements of a redevelopment district and will henceforth be referred to as a redevelopment tax increment financing district. The parcels that have been used to establish eligibility as a redevelopment tax increment financing district are listed in Appendix C. F. Parcels in Acquisition 1 Properties identified for acquisition will be acquired by the City in order to accomplish one or more of the following: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; to eliminate unhealthful, unsafe, and unsanitary structures and conditions; reduce traffic hazards; provide land for needed public streets, utilities, and facilities; remove incompatible land use, eliminate obsolete or detrimental uses; assemble land for redevelopment; carry out clearance and/or , redevelopment to accomplish the uses and objectives set forth in this plan. 2 There are three properties identified for acquisition by the City at the present time. (Refer to Appendix C). (AS MODIFIED JUNE 12, 1989) 2. There are four properties identified for acquisition by the City. (Refer to Appendix C) (AS MODIFIED MARCH 26, 1990) 1 Properties identified for acquisition will be acquired by the City in order to accomplish one or more of the following: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; to eliminate unhealthful, unsafe, and unsanitary structures and conditions; reduce traffic hazards; provide land for needed public streets, utilities, and facilities; remove incompatible land use, eliminate obsolete or detrimental uses; assemble land for redevelopment; carry out clearance and/or , City of Mounds View TIF District No. 1 Modification 6 | P a g e redevelopment to accomplish the uses and objectives set forth in this plan. 2 There are four properties identified for acquisition by the City at the present time. (Refer to Appendix C). In addition, the following property within the existing Municipal Development District No. 2 is being proposed for acquisition: Roberts Offten, 2400 County Road H2 (AS MODIFIED OCTOBER 8, 2012) It is anticipated that the EDA or City will acquire and reconvey parcels located outside of the District but located within the Mounds View Economic Development Project, including interior and adjacent street rights of way, as identified below: 08-30-23-12-0068 06-30-23-41-0057 06-30-23-34-0062 06-30-23-44-0001 06-30-23-12-0008 08-30-23-12-0048 06-30-23-41-0050 06-30-23-31-0015 05-30-23-33-0004 06-30-23-14-0002 08-30-23-12-0052 06-30-23-41-0070 06-30-23-31-0043 06-30-23-41-0012 06-30-23-12-0078 05-30-23-23-0020 06-30-23-14-0011 06-30-23-31-0030 06-30-23-41-0010 06-30-23-12-0082 06-30-23-14-0032 06-30-23-14-0002 06-30-23-31-0031 05-30-23-32-0010 06-30-23-12-0081 06-30-23-14-0023 06-30-23-14-0018 06-30-23-31-0173 06-30-23-41-0009 06-30-23-12-0116 06-30-23-13-0029 06-30-23-14-0017 06-30-23-31-0033 06-30-23-41-0008 06-30-23-14-0068 06-30-23-13-0030 06-30-23-14-0016 06-30-23-31-0174 06-30-23-41-0007 05-30-23-23-0037 08-30-23-11-0003 06-30-23-14-0020 06-30-23-23-0045 05-30-23-32-0007 05-30-23-23-0038 08-30-23-11-0005 06-30-23-14-0052 06-30-23-23-0018 06-30-23-41-0004 06-30-23-14-0076 07-30-23-43-0088 06-30-23-14-0027 08-30-23-44-0008 05-30-23-32-0006 06-30-23-14-0075 08-30-23-13-0003 06-30-23-14-0061 08-30-23-44-0007 06-30-23-41-0003 06-30-23-14-0048 08-30-23-13-0006 06-30-23-14-0083 05-30-23-41-0006 05-30-23-32-0004 06-30-23-41-0026 07-30-23-21-0017 05-30-23-31-0056 05-30-23-41-0002 06-30-23-41-0001 06-30-23-14-0014 07-30-23-21-0018 05-30-23-32-0041 05-30-23-44-0008 06-30-23-14-0045 06-30-23-14-0012 07-30-23-21-0045 05-30-23-32-0042 05-30-23-44-0009 05-30-23-23-0056 06-30-23-13-0020 07-30-23-22-0014 05-30-23-32-0043 05-30-23-43-0004 05-30-23-23-0058 06-30-23-42-0039 07-30-23-23-0001 05-30-23-32-0045 05-30-23-42-0057 06-30-23-14-0069 06-30-23-31-0022 07-30-23-22-0035 05-30-23-32-0049 06-30-23-44-0063 05-30-23-23-0028 06-30-23-24-0022 07-30-23-23-0002 05-30-23-23-0043 06-30-23-44-0017 06-30-23-14-0059 07-30-23-24-0038 07-30-23-23-0003 05-30-23-23-0052 06-30-23-41-0039 05-30-23-23-0029 07-30-23-24-0039 08-30-23-14-0032 06-30-23-42-0058 06-30-23-44-0040 06-30-23-14-0034 07-30-23-23-0019 08-30-23-14-0034 06-30-23-31-0009 06-30-23-41-0041 05-30-23-23-0031 07-30-23-23-0034 08-30-23-14-0042 06-30-23-42-0061 06-30-23-44-0043 05-30-23-23-0032 07-30-23-23-0020 08-30-23-14-0045 06-30-23-31-0007 06-30-23-43-0022 06-30-23-11-0068 07-30-23-23-0033 08-30-23-14-0047 06-30-23-42-0064 06-30-23-42-0072 06-30-23-11-0035 07-30-23-23-0031 08-30-23-14-0046 06-30-23-31-0005 06-30-23-43-0030 06-30-23-11-0037 07-30-23-23-0029 08-30-23-43-0004 06-30-23-31-0003 06-30-23-42-0054 06-30-23-11-0092 07-30-23-23-0028 City of Mounds View TIF District No. 1 Modification 7 | P a g e 08-30-23-43-0012 06-30-23-42-0068 06-30-23-42-0057 06-30-23-11-0090 07-30-23-22-0007 08-30-23-33-0071 06-30-23-31-0002 06-30-23-42-0056 06-30-23-11-0034 07-30-23-22-0023 08-30-23-33-0065 06-30-23-42-0070 08-30-23-33-0025 06-30-23-12-0039 07-30-23-22-0024 08-30-23-33-0062 08-30-23-21-0039 08-30-23-24-0013 06-30-23-12-0080 06-30-23-34-0055 08-30-23-33-0060 06-30-23-14-0019 08-30-23-12-0076 06-30-23-14-0001 06-30-23-33-0001 07-30-23-34-0047 06-30-23-14-0073 07-30-23-34-0033 06-30-23-21-0111 06-30-23-23-0006 07-30-23-34-0046 06-30-23-44-0027 07-30-23-34-0044 07-30-23-42-0070 06-30-23-23-0007 07-30-23-34-0045 06-30-23-44-0011 07-30-23-34-0043 07-30-23-11-0031 06-30-23-23-0041 07-30-23-34-0034 06-30-23-44-0018 07-30-23-34-0042 17-30-23-14-0009 06-30-23-24-0071 07-30-23-33-0036 06-30-23-44-0013 07-30-23-34-0016 05-30-23-44-0026 06-30-23-23-0008 07-30-23-33-0014 06-30-23-44-0019 07-30-23-34-0005 05-30-23-44-0091 06-30-23-24-0070 08-30-23-24-0021 06-30-23-44-0016 07-30-23-34-0004 08-30-23-31-0061 06-30-23-23-0009 08-30-23-31-0005 06-30-23-41-0038 07-30-23-34-0013 17-30-23-14-0005 06-30-23-23-0010 08-30-23-32-0004 06-30-23-41-0036 07-30-23-34-0003 17-30-23-14-0004 06-30-23-24-0049 08-30-23-32-0006 06-30-23-41-0035 07-30-23-34-0002 17-30-23-14-0003 06-30-23-23-0027 08-30-23-32-0005 06-30-23-41-0015 07-30-23-31-0040 17-30-23-14-0002 06-30-23-22-0022 08-30-23-32-0007 06-30-23-41-0033 07-30-23-31-0049 17-30-23-14-0001 06-30-23-22-0021 08-30-23-32-0111 06-30-23-41-0019 07-30-23-31-0013 07-30-23-33-0015 06-30-23-22-0020 08-30-23-32-0108 06-30-23-41-0029 07-30-23-31-0012 07-30-23-33-0013 06-30-23-22-0016 08-30-23-32-0072 06-30-23-41-0028 07-30-23-31-0033 07-30-23-33-0029 06-30-23-22-0026 08-30-23-32-0107 06-30-23-41-0024 07-30-23-31-0032 07-30-23-33-0012 06-30-23-22-0091 07-30-23-31-0002 06-30-23-11-0017 07-30-23-31-0031 07-30-23-33-0011 06-30-23-22-0086 07-30-23-31-0004 07-30-23-24-0024 07-30-23-31-0010 07-30-23-33-0028 06-30-23-22-0077 07-30-23-24-0017 07-30-23-24-0005 07-30-23-31-0030 07-30-23-33-0010 08-30-23-24-0028 07-30-23-31-0025 07-30-23-21-0023 07-30-23-31-0029 07-30-23-33-0027 08-30-23-24-0043 07-30-23-24-0016 06-30-23-34-0080 07-30-23-24-0018 07-30-23-33-0025 07-30-23-42-0057 07-30-23-31-0026 06-30-23-34-0033 07-30-23-24-0019 07-30-23-33-0007 06-30-23-43-0117 07-30-23-31-0027 06-30-23-34-0016 07-30-23-24-0031 07-30-23-33-0006 06-30-23-42-0028 07-30-23-31-0028 06-30-23-34-0025 07-30-23-24-0030 07-30-23-33-0004 06-30-23-42-0005 07-30-23-32-0001 06-30-23-31-0042 07-30-23-24-0028 07-30-23-33-0003 05-30-23-44-0058 07-30-23-23-0015 06-30-23-31-0029 07-30-23-24-0011 07-30-23-33-0001 05-30-23-44-0059 07-30-23-23-0014 06-30-23-31-0016 07-30-23-24-0056 07-30-23-33-0020 05-30-23-44-0066 07-30-23-23-0013 06-30-23-31-0028 07-30-23-21-0049 07-30-23-22-0032 05-30-23-43-0064 07-30-23-23-0012 06-30-23-31-0017 07-30-23-21-0050 07-30-23-22-0031 05-30-23-43-0057 08-30-23-12-0050 06-30-23-31-0027 07-30-23-21-0061 07-30-23-22-0030 08-30-23-32-0049 08-30-23-12-0051 06-30-23-31-0026 07-30-23-21-0036 06-30-23-23-0021 08-30-23-32-0048 05-30-23-34-0063 06-30-23-31-0242 07-30-23-21-0055 06-30-23-23-0038 08-30-23-32-0043 08-30-23-21-0047 06-30-23-31-0019 07-30-23-21-0056 06-30-23-22-0085 07-30-23-31-0020 08-30-23-22-0007 06-30-23-31-0024 06-30-23-21-0077 08-30-23-44-0009 07-30-23-31-0019 08-30-23-22-0008 06-30-23-31-0007 08-30-23-13-0062 08-30-23-14-0065 07-30-23-32-0015 City of Mounds View TIF District No. 1 Modification 8 | P a g e 08-30-23-22-0040 06-30-23-31-0105 08-30-23-13-0028 08-30-23-14-0066 07-30-23-32-0013 05-30-23-33-0017 06-30-23-21-0104 08-30-23-13-0036 05-30-23-41-0018 07-30-23-32-0012 05-30-23-33-0098 06-30-23-21-0022 08-30-23-13-0065 05-30-23-41-0016 07-30-23-32-0011 06-30-23-44-0069 06-30-23-21-0026 05-30-23-24-0017 08-30-23-14-0029 07-30-23-32-0018 06-30-23-34-0010 06-30-23-21-0034 05-30-23-24-0041 06-30-23-12-0101 07-30-23-34-0035 07-30-23-22-0039 06-30-23-21-0036 05-30-23-24-0043 06-30-23-42-0055 07-30-23-43-0055 07-30-23-22-0027 06-30-23-21-0037 06-30-23-13-0048 06-30-23-42-0053 07-30-23-34-0055 07-30-23-22-0028 08-30-23-31-0070 06-30-23-13-0052 06-30-23-42-0030 07-30-23-34-0008 07-30-23-22-0029 08-30-23-42-0013 06-30-23-13-0054 06-30-23-42-0032 05-30-23-23-0021 06-30-23-22-0080 08-30-23-42-0005 06-30-23-24-0018 06-30-23-42-0034 05-30-23-23-0022 06-30-23-22-0089 08-30-23-42-0004 06-30-23-24-0022 06-30-23-42-0035 05-30-23-23-0023 06-30-23-22-0102 08-30-23-42-0003 06-30-23-31-0021 06-30-23-42-0044 05-30-23-23-0024 07-30-23-41-0140 08-30-23-31-0075 07-30-23-44-0115 06-30-23-13-0018 05-30-23-23-0025 06-30-23-44-0029 08-30-23-31-0069 08-30-23-33-0048 06-30-23-13-0045 05-30-23-23-0034 06-30-23-44-0030 08-30-23-31-0071 08-30-23-32-0075 06-30-23-12-0022 05-30-23-23-0035 06-30-23-44-0032 08-30-23-22-0039 08-30-23-32-0074 06-30-23-12-0018 05-30-23-32-0017 06-30-23-44-0050 06-30-23-43-0016 06-30-23-44-0059 06-30-23-12-0120 05-30-23-32-0038 06-30-23-44-0049 06-30-23-43-0028 05-30-23-33-0011 06-30-23-12-0103 05-30-23-32-0036 06-30-23-44-0048 06-30-23-43-0029 05-30-23-33-0010 06-30-23-12-0107 05-30-23-32-0022 06-30-23-44-0038 06-30-23-34-0001 05-30-23-33-0009 06-30-23-12-0122 05-30-23-32-0023 06-30-23-44-0041 06-30-23-31-0014 05-30-23-33-0007 06-30-23-12-0037 05-30-23-32-0026 05-30-23-32-0032 05-30-23-23-0048 05-30-23-23-0036 05-30-23-23-0049 06-30-23-14-0066 Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: carry out land acquisition; demolition of structures; rehabilitation of housing and commercial units; relocation; construction of new residential and commercial units; site improvements; storm sewer improvements; roadway improvements, provide land for needed public streets, sidewalks, alley ways, utilities and facilities to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. G. Estimate of Costs The estimate of public costs associated with the tax increment financing redevelopment district are outlined in the line item budget in Appendix E. The amount of capitalized interest identified in the budget will be equal to an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenue to meet scheduled interest payments when due, but not exceeding 3 years as required by Minnesota Statutes, Chapter 475. Predicting capitalized City of Mounds View TIF District No. 1 Modification 9 | P a g e interest prior to issuance is extremely difficult as it is a function of interest rates, construction schedules and tax timing; therefore, the given figure is only an estimate of capitalized interest and is subject to change. (AS MODIFIED NOVEMBER 13,2000) The budget history and estimate of authorized public costs associated with the tax increment financing redevelopment district are outlined in the line item budget in Appendix B. H. Estimated Amount of Loan/Bonded Indebtedness An estimate of the amount of bonded indebtedness is expected to be $6,650,000. The term of the issue is 15 years including 3 years of capita lized interest and the interest rate is expected to be 10.5 percent. The amount of capitalized interest is estimated to be in a range of $2,100,000 to $2,300,000. (AS MODIFIED JUNE 12,1989) An estimate of the amount of bonded indebtedness is expected to range between $2,300,000 and $2,500,000. The term of the issue is 14 years including 3 years of capitalized interest. The amount of capitalized interest is estimated to be in a range of $400,000 to $425,000. (AS MODIFIED MARCH 26, 1990) An estimate of the amount of bonded indebtedness is expected to range between $3,200,000 and $4,250,000. The term of the issue is 12 years including 3 years of capitalized interest. The amount of capitalized interest is estimated to be in a range of $600,000 to $700,000. (AS MODIFIED NOVEMBER 13, 2000) The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the Modified Plan. The projects have been financed by bond issues, inter-fund loans and transfers. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $36,000,000 without a modification to the Plan pursuant to applicable statutory requirements. I. Sources of Revenue Several sources of revenue may be used to finance public costs associated with the development projects in the municipal development district including tax increment financing, special assessments, small cities development and federal grant funds. Tax increment financing refers to a funding technique that utilizes increases in assessed valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. The office/service center, warehouse, and restaurant City of Mounds View TIF District No. 1 Modification 10 | P a g e project is expected to be fully assessed beginning in 1988 for Stage I, 1989 for Stage II, 1990 for Stage III, and 1991 for Stage IV. The development will generate an annual tax increment of $1,052,520 at full assessment upon completion of all four stages of development. A partial tax increment may be received: in 1989 based upon a partial assessment of the developments should the projects be less than 100% completed on January 2, 1988. (AS MODIFIED JUNE 12,1989) Several sources of revenue may be used to finance public costs associated with the development projects in the municipal development district including tax increment financing, special assessments, earned interest and undesignated municipal funds. Tax increment financing refers to a funding technique that utilizes increases in assessed valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. The office/light manufacturing and warehouse project is expected to be fully assessed beginning in 1990 for Stage 1, 1991 for Stage II, and 1992 for any remainder. The development will generate an annual tax increment in the range of $330,000 to $380,000 at full assessment upon completion of all three stages of development. A partial tax increment may be received in 1991 based upon a partial assessment of the developments should the proj ects be less than 100% completed on January 2, 1990. (AS MODIFIED MARCH 26, 1990) Several sources of revenue may be used to finance public costs associated with the development projects in the municipal development district including tax increment financing, special assessments, small cities development and federal grant funds. Tax increment financing refers to a funding technique that utilizes increases in assessed valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. The office/light manufacturing and warehouse project is expected to be fully assessed beginning in 1992 for Stage I, 1993 for Stage II and 1994 for any remainder. The development will generate an annual tax increment in the area of $450,000 at full assessment of all three stages of development. A partial tax increment may be received in 1992 based upon partial assessment of the developments should the projects be less than 100% completed on January 2, 1991. (AS MODIFIED NOVEMBER 13,2000) Several sources of revenue may be used to finance public costs associated with the development projects in the municipal development district including tax increment financing, special assessments, earned interest, general property taxes state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, and undesignated municipal funds. Appendix E includes a detailed estimate of the Sources of Revenue being authorized for the District. City of Mounds View TIF District No. 1 Modification 11 | P a g e J. Original Assessed Value Pursuant to Minnesota Statutes, Section 273.74, Subdivision 1 and Section 273.76, Subdivision 1, the Original Assessed Value (OAV) for the City of Mounds View tax increment financing redevelopment district is based on the value placed on the property by the County Assessor in 1985.* This assessed value is $2,416,086. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax increment redevelopment district to calculate the tax increment payable to the Mounds View redevelopment district fund. In any year in which there is an increase in total assessed valuation in the tax increment redevelopment district ab ove the adjusted original assessed value, a tax increment will be payable. In any year in which the total assessed valuation in the tax increment financing redevelopment district declines below the original assessed valuation, no assessed valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the Original Assessed Value was certified, the amount the OAV has increased or decreased as a result of: 1 change in tax exempt status of property; 2 reduction or enlargement of the geographic boundaries of the district; 3 change due to stipulations, adjustments, negotiated or court-ordered abatements. *(The figures contained herein are based upon 1985 payable 1986 original assessed values). (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Section 467.177, Subdivision 1, the Original Tax Capacity Value (OTV) for the City of Mounds View tax increment financing redevelopment district Modification No. 1 is based on the value placed on the property by the County Assessor in 1988. This tax capacity value is $26,154. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax increment redevelopment district to calculate the tax increment payable to the Mounds View redevelopment district fund. In any year in which there is an increase in total assessed valuation in the tax increment redevelopment district above the adjusted original assessed value, a tax increment will be payable. In any year in which the total assessed valuation in the tax increment financing redevelopment district declines below the original assessed valuation, no assessed valuation will be captured and no tax increment will be payable. Effective with requests for certification for new districts filed after May 1, 1988, the County Auditor is to certify the original tax capacity rate as well as the original tax capacity for the base year of anew district. This provision does not apply for districts established on or before May 1, 1988 or to the expanded portion of such districts even if the expansion is City of Mounds View TIF District No. 1 Modification 12 | P a g e after May 1, 1988. Therefore, this provision does not apply to this modification. *(The figures contained herein are based upon 1988 payable 1989 original assessed values). (AS MODIFIED MARCH 26, 1990) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Section 467.177, Subdivision 1, the Original Tax Capacity Value (OTV) for the City of Mounds View tax increment financing redevelopment district Modification No. 2 is based on the value placed on the property by the County Assessor in 1989. This tax capacity value is $21,322. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax increment redevelopment district to calculate the tax increment payable to the Mounds View redevelopment district fund. In any year in which there is an increase in total assessed valuation in the tax increment redevelopment district above the adjusted original assessed value, a tax increment will be payable. In any year in which the total assessed valuation in the tax increment financing redevelopment district declines below the original assessed valuation, no assessed valuation will be captured and no tax increment will be payable. K. Estimated Captured Assessed Value Pursuant to Minnesota Statutes, Section 273.74, Subdivision 1 and Minnesota Statutes, Section 273.76, Subdivision 2, the estimated Captured Assessed Value (CAV) of the tax increment financing redevelopment district will annually approximate $10,516,892 as a result of the project. This amount will be captured for up to twenty -five years or until the project debt is retired. The City requests 100 percent of the available increase in assessed value for repayment of debt and current expenditures. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated Captured Tax Capacity Value (CTV) of the tax increment financing redevelopment district Modification No. 2 will annually range approximate $360,000 to $420,000 as a result of the project. This amount will be captured for the remaining life of the District. (AS MODIFIED MARCH 26, 1990) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated Captured Tax Capacity Value (CTV) of the tax increment financing redevelopment district Modification No. 2 will annually approximate $450,000 as a result of the project. This amount will be captured for the remaining life of the District. L. Duration of the District Pursuant to Minnesota Statutes, Section 273.75, Subdivision 1, the duration of the tax increment district within the Development District must be indicated within the finance plan. The duration of the tax increment district will be 25 years from the date of receipt of City of Mounds View TIF District No. 1 Modification 13 | P a g e the first tax increment. Thus, it is estimated that the tax increment district, including any modifications to the finance plan for subsequent phases or other ,changes, would terminate in year 2014. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, the duration of the tax increment district within the Development District must be indicated within the finance plan. The duration of the tax increment district will be 25 years from the date of receipt of the first tax increment. Thus, it is estimated that the tax increment district, including any modifications to the finance plan for subsequent phases or other modifications would terminate in year 2014. (AS MODIFIED OCTOBER 8, 2012) Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The date of receipt by the City of the first tax increment was 1988. Thus, it is estimated that the District, incl uding any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2013, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. M. Estimated Impact on Other Taxing Jurisdictions The impact of the loss of tax dollars represented as tax increments is estimated below for each taxing jurisdiction. This estimate is based on the existing redevelopment proposals and does not include the possible tax increments derived from any other future development, mill changes, or inflation factors. Total Assessed Value Tax Increment Finance District 1/2/85 Total $2,416,086 Latest Assessed Value of Each Government Body: % of District to Total City of Mounds View $ 68,429,189 3.531 County of Ramsey $3,292,017,989 .073 School District #621 $557,331,065 .434 Spec. Ind. School Dist. #916 $1,509,476,825 .160 Other: Metro Transit $3,292,017,989 .073 Met Council $3,292,017,989 .073 Rice Creek Watershed $712,270,757 .339 Mosquito Control $3,292,017,989 .073 City of Mounds View TIF District No. 1 Modification 14 | P a g e County Library $1,543,703,251 .157 Considering all the districts, it can be seen from the above that the city will have over 96% and the school and county districts will have over 99% of each respective district available for normal growth of tax base or valuation. Applying the percentage of the total mill rate in 1986 levied by each taxing jurisdiction to the projected mill rate and the estimated tax increment received reveals the annual loss of tax dollars by each taxing jurisdiction as listed in the table below assuming development would occur without public assistance. The finance plan indicates we anticipate a tax increment at build out as follows: Captured Assessed Valuation Tax Increment Received Tax Increment Finance District $10,516,892 $1,052,520 Based on the current mill rate, the estimated taxes received would be as follows for the taxing bodies: Mills Percent Tax Increment City of Mounds View 13.876 13.9% $145,932 County of Ramsey 31.867 31.8% 335,142 School District #621 47.069 47.0% 495,019 Spec. Ind. School Dist. #916 1.160 1.2% 12,200 Other 6.107 6.1% 64,227 Total 100.79 100.0% $1,052,520 The following table represents the additional mills that would have to be levied to compensate for the loss of tax dollars in estimated tax increments for each taxing jurisdiction. The tax increments derived from the redevelopment project alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. Although the increases in assessed value due to development will not be available for the application of the mill levy for the duration of the tax increment financing district, this new assessed ·value could eventually permit a mill levy decrease. If it could be assumed that the captured assessed value was available for each taxing jurisdiction, the non-receipt of tax dollars represented as tax increments may be determined. This -determination is facilitated by estimating how much the mill levy for property outside of the tax increment financing district would have to be increased to raise the same amount of .tax dollars in each taxing jurisdiction that would be available if the projects occurred without the assistance of the City. City of Mounds View TIF District No. 1 Modification 15 | P a g e Adjusted* Assessed Value Required Mills Tax Increment City of Mounds View $66,013,103 2.211 145,932 County of Ramsey 3,289,601,903 0.102 335,142 School District #621 554,914,979 0.892 495,019 Spec. Ind. School Dist. #916 1,507,060,739 0.008 12,200 Other 3,289,601,903 0.020 64,227 *Tax Increment District assessed valuation subtracted. (AS MODIFIED JUNE 12, 1989) The impact of the use of tax dollars represented as tax increments for project costs is estimated below for each taxing jurisdiction. This estimate is based on the existing development proposals and does not include the possible tax increments derived from any other future development, rate changes, inflation factors, or other Tax Increment Districts. Tests: The estimated impact on other taxing jurisdictions assumes construction would have occurred without the modification of the Tax Increment Financing District. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdiction is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District Modification No. 1 would be as follows if Test No. 1 (the “but for” test) was not met. Tax Capacity Value Tax Increment Finance District Modification No. 1 1/2/87 Total $26,154 Latest Tax Capacity Value of Each Government Body: % of District to Total City of Mounds View 7,306,281 .3579 County of Ramsey 404,538,860 .0065 School District 73,831,323 .0354 Considering the above taxing jurisdictions, it can be seen that the City, School and County Districts will have over 96% of each respective district available for normal growth of tax base or valuation from this tax increment district modification. Applyin g the percentage of the total tax capacity rate in 1989 levied by the above taxing jurisdictions to the projected City of Mounds View TIF District No. 1 Modification 16 | P a g e tax capacity rate and the estimated tax increment received reveals the annual use of tax dollars for project costs as it affects each taxing j urisdiction. Anticipating a tax increment at build out as described in Appendix E, Section II, “Tax Increment Estimate,” and utilizing the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: Captured Tax Capacity Tax* Increment Tax Increment Finance District $416,450 $380,000 Based on the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: *On high end of $330,000 to $380,000 range. Entity Tax Capacity Rate Percent Modification Tax Increment City 10.621 11.58 44,004 County 28.380 30.97 117,686 School District 46.1681 50.37 191,406 Other 6.477 7.08 26,904 TOTAL 91.6462 100.00% $380,000 1. Confirmed 4.051 tax capacity rate referendum. A tax capacity rate of 87.595 may be used to estimate tax increment, if the fiscal consultant determines the project is eligible. 2. A frozen original tax capacity rate is not applicable to pre-May 1, 1988 districts since the district was approved in February of 1988 and certified prior to May 1, 1988. The following table represents the additional mills that would have to be levied to compensate for the loss of tax dollars in estimated tax increments for each taxing jurisdiction. The tax increments derived from the redevelopment project alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. Although the increases in tax capacity value due to development will not be available for the application of the tax capacity rate for the duration of the tax increment financing district, this new tax capacity value could eventually permit a tax capacity rate decrease. If it could be assumed that the captured tax capacity value was available for each taxing jurisdiction, the non-receipt of tax dollars represented as tax increments may be determined. This determination is facilitated by estimating how much the tax capacity rate for property outside of the tax increment financing district would have to be increased to raise the same amount of tax dollars in each taxing jurisdiction that would be available if the projects occurred WITHOUT THE ASSISTANCE OF THE CITY. City of Mounds View TIF District No. 1 Modification 17 | P a g e (AS MODIFIED MARCH 26, 1990) The impact of the use of tax dollars represented as tax increments for project costs is estimated below for each taxing jurisdiction. This estimate is based on the existing development proposals and does not include the possible tax increments derived from any other future development, rate changes, inflation factors, or other Tax Increment Districts. Tests: The estimated impact on other taxing jurisdictions assumes construction would have occurred without the modification of the Tax Increment Financing District. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdiction is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District Modification No. 2 would be as follows if Test No. 1 (the “but for” test) was not met. Tax Capacity Value Tax Increment Finance District Modification No. 2 1/2/89 Total $21,322 Latest Tax Capacity Value of Each Government Body: % of District to Total City of Mounds View 7,306,281 .2918 County of Ramsey 404,538,860 .0052 School District 73,831,323 .0288 Considering the above taxing jurisdictions, it can be seen that the City, School and County Districts will have over 96% of each respective district available for normal growth of tax base or valuation from this tax increment district modification. Applying the percentage of the total tax capacity rate in 1989 levied by the above taxing jurisdictions to the projected tax capacity rate and the estimated tax increment received reveals the annual use of tax dollars for project costs as it affects each taxing jurisdiction. Anticipating a tax increment at build out as described in Appendix E, Section II, “Tax Increment Estimate,” and utilizing the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: Captured Tax Capacity Tax* Increment Tax Increment Finance District $487,478 $450,000 Based on the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: City of Mounds View TIF District No. 1 Modification 18 | P a g e Entity Tax Capacity Rate Percent Modification Tax Increment City 10.621 11.58 52,110 County 28.380 30.97 139,365 School District 46.1681 50.37 226,665 Other 6.477 7.08 31,860 TOTAL 91.6462 100.00% $450,000 1. Confirmed 4.051 tax capacity rate referendum. A tax capacity rate of 87.595 may be used to estimate tax increment, if the fiscal consultant determines the project is eligible. 2. A frozen original tax capacity rate is not applicable to pre-May 1, 1988 districts since the district was approved in February of 1988 and certified prior to May 1, 1988. * Payable 1990 not available as of 1/25/90 The following table represents the additional mills that would have to be levied to compensate for the loss of tax dollars in estimated tax increments for each taxing jurisdiction. The tax increments derived from the redevelopment project alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. Although the increases in tax capacity value due to development will not be available for the application of the tax capacity rate for the duration of the tax increment financing district, this new tax capacity value could eventually permit a tax capacity rate decrease. If it could be assumed that the captured tax capacity value was available for each taxing jurisdiction, the non-receipt of tax dollars represented as tax increments may be determined. This determination is facilitated by estimating how much the tax capacity rate for property outside of the tax increment financing district would have to be increased to raise the same amount of tax dollars in each taxing jurisdiction that would be available if the projects occurred WITHOUT THE ASSISTANCE OF THE CITY. Adjusted Tax 1 Capacity Value Required Tax Capacity Rate Without F.D. Contributions City 7,280,127 .7157 52,110 County 404,512,706 .0344 139,365 School District 73,805,169 .0371 226,665 1 Tax Increment District Tax Capacity Value Subtracted. N. Modifications of the Tax Increment Financing District In accordance with Minnesota Statutes, Section 273.74, Subdivision 4, any reduction or City of Mounds View TIF District No. 1 Modification 19 | P a g e enlargement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination or capitalized interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured assessed value to be retained by the City, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the authority shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years following the date of certification of the original assessed value by the county auditor. The tax increment financing redevelopment district may therefore be expanded until 1991. (AS MODIFIED JUNE 12, 1989) In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination or capitalized interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured assessed value to be retained by the City, increase in total estima ted tax increment expenditures or designation of additional property to be acquired by the authority shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years following the date of certification of the original assessed value by the county auditor. The tax increment financing redevelopment district may therefore be expanded until 1991. O. Limitation on Administrative Expenses In accordance with Minnesota Statutes, Section 273.73, Subdivision 13 and Minnesota Statutes, Section 273.75, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 273.77. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any' administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. (AS MODIFIED JUNE 12, 1989) In accordance with Minnesota Statutes, Section 469.174, Subdivision 13 and Minnesota Statutes, Section 469.174, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and City of Mounds View TIF District No. 1 Modification 20 | P a g e engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 273.77. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any' administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Tax Increment Financing Districts Pursuant to Minnesota Statutes, Section 273.75, Subdivision 1, "no tax increment shall be paid to an authority three years from the date of certification by the County Auditor unless within the three-year period (1) bonds have been issued pursuant to Section 273.77 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Chapter 474, prior to the effective date of the Act; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district… "The City must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1989 or the Office of the County Auditor may dissolve the tax increment financing district. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, "no tax increment shall be paid to an authority three years from the date of certification by the County Auditor unless within the three-year period (1) bonds have been issued pursuant to Section 469.178 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Chapter 474, prior to the effective date of the Act; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district… "The City must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1989 or the Office of the County Auditor may dissolve the tax increment financing district. Q. Limitation on Qualification of Property in Tax Increment District Not Subject to Improvement Pursuant to Minnesota Statutes Section 273.75, Subdivision 6, "if, after four years from the date of certification of the original assessed value of the tax increment financing district…, no demolition, rehabilitation or renovation of parcel or other site preparation including improvement of a street adjacent to a property but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original assessed value of that parcel shall be excluded from the original assessed value of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site City of Mounds View TIF District No. 1 Modification 21 | P a g e preparation on that parcel including improvement of a street adjacent to that parcel, in, accordance with the tax increment financing plan, the authority shall certify to the county auditor in the annual disclosure report that the activity has commenced. The county auditor shall certify the assessed value thereof as most recently certified by the commissioner of revenue and add it to the original assessed value of the tax increment financing district. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes Section 469.176, Subdivision 6, "if, after four years from the date of certification of the original assessed value of the tax increment financing district…, no demolition, rehabilitation or renovation of parcel or other site preparation including improvement of a street adjacent to a property but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original assessed value of that parcel shall be excluded from the original assessed value of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including improvement of a street adjacent to that parcel, in, accordance with the tax increment financing plan, the authority shall certify to the county auditor in the annual disclosure report that the activity has commenced. The county auditor shall certify the assessed value thereof as most recently certified by the commissioner of revenue and add it to the original assessed value of the tax increment financing district. R. Limitation on the Use of Tax Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minnesota Statutes, Chapter 472A. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality; this provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. (AS MODIFIED JUNE 12, 1989) All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minnesota Statutes, Chapter 469. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality; this provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. City of Mounds View TIF District No. 1 Modification 22 | P a g e S. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes Section 273.76, Subdivision 4, the City has reviewed and searched the properties to be included in the tax increment financing redevelopment district and found no properties for which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the city. If the building permit had been issued within the 18 month period preceding approval of the tax increment financing plan by the city, the county auditor shall increase the original assessed value of the district by the assessed valuation of the improvements for which the building permit was issued, excluding the assessed valuation of improvements for which a building permit was issued during the three month period immediately preceding s aid approval of the tax increment financing plan, as certified by the assessor. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes Section 469.177, Subdivision 4, the City has reviewed and searched the properties to be included in the tax increment financing redevelopment district and found no properties for which building permits have been issued immediately preceding approval of the tax increment financing plan by the city. The county auditor shall increase the original tax capacity value of the district by the tax capacity valuation of the improvements for which building permit was issued. T. Excess Tax Increments Pursuant to Minnesota Statutes, Section 273.75, Subdivision 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.61, Subdivision 3, the City shall use the excess amount to: 1. prepay the outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; 4. repay any loans including interest on these loans; or 5. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their mill rate. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.176, Subdivision 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.61, Subdivision 3, the City shall use the excess amount to: City of Mounds View TIF District No. 1 Modification 23 | P a g e 1. prepay the outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; 4. repay any loans including interest on these loans; or 5. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rate. U. Requirement for Agreements with the Developer Pursuant to Minnesota Statutes Section 273.75, Subdivision 5, no more that 25 percent by acreage of the property to be acquired by the City in the redevelopment district shall be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to Section 273.77 without the City having prior to acquisition in excess of 25 percent of the acreage, concluded an agreement for the development of the property acquired and which provides recourse for the City should the development not be completed. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes Section 469.176, Subdivision 5, no more that 25 percent by acreage of the property to be acquired by the City in the redevelopment district shall be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to Section 273.77 without the City having prior to acquisition in excess of 25 percent of the acreage, concluded an agreement for the development of the property acquired and which provides recourse for the City should the development not be completed. V. Assessment Agreements Pursuant to Minnesota Statutes Section 273.76, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 273.75, Subdivision 5, enter into an agreement in recordable form with the developer of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to ·be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and 50 long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes Section 469.176, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 469.177, City of Mounds View TIF District No. 1 Modification 24 | P a g e Subdivision 5, enter into an agreement in recordable form with the developer of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to ·be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and 50 long as the minimum market value contained in the tax capacity agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tax Increment Financing Redevelopment District and Maintenance of the Tax Increment Account Administration of the tax increment financing redevelopment district will be handled by the Office of the City Clerk-Administrator. The tax increment received as a result of increases in the assessed value of the tax increment financing redevelopment district will be maintained in a special account separate from all other municipal accounts and expended only upon sanctioned municipal .activities identified in the finance plan. (AS MODIFIED NOVEMBER 13, 2000) Administration of the tax increment financing redevelopment district will be handles by the City of Mounds View’s E.D.A. Executive Director. Consistent with Minnesota Statutes, Section 469.177, Subdivision 5, requiring that “Tax increment received with respect to any district shall be segregated by the authority in a special account or accounts on its official books and records or as otherwise established by resolution of the authority to be held by a trustee or trustees for the benefit of holders of the bond,” the EDA will account for all increment for all increment from the Tax Increment Districts in one or more accounts and subaccounts, including the ability where deemed appropriate to establish one or more accounts for the proper accounting and implementation of the Tax increment Financing Districts and the portion of the Project to be financed directly or indirectly with tax increment. The right to make appropriate transfers i n and out of such accounts is hereby reserved, along with the right to make both external and internal interest bearing borrowings, whether long term or short term, including transfers from other City or EDA funds to cash flow tax increment obligations and other legitimate expenditures. X. Annual Disclosure Requirements Pursuant to Minnesota Statutes, Section 273.14, Subdivision 6, an authority must file an annual disclosure report for all tax increment financing districts. The report shall be filed with the school board, county board, and governing body of the municipality, if the authority is not the municipality, and the State Auditor. The report shall include the following information: City of Mounds View TIF District No. 1 Modification 25 | P a g e 1. The original assessed value of the district; 2. The captured assessed value of the district, including the amount of any captured assessed value shared with other taxing districts; 3. The outstanding principal amount of bonds issued or other loans incurred to finance project costs in the district; 4. For the reporting period and for the duration of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: (A) Acquisition of land and buildings through condemnation or purchase; (B) Site improvements or preparation costs; (C) Installation of public utilities or other public improvements; (D) Administrative costs, including the allocated cost of the authority; 5. For properties sold to developers, the total cost of the property to the authority and the price paid by the developer; 6. The amount of tax exempt obligations, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in the district. The annual disclosure report is designed to be a two-way medium of information dissemination for both the Office of the County Auditor and the City. Should the auditor want additional information from the City regarding its tax increment financing activit ies, such information should be requested prior to submission of the annual disclosure report by the City. Similarly, the city council may utilize the annual disclosure report as a means for requesting information from the Office of the County Auditor. Additionally, the city must annually publish a statement in a newspaper of general circulation in the municipality showing the tax increment received and expended in that year, the original assessed value, the captured assessed value, amount of outstanding bonded indebtedness and any additional information the city deems necessary. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 5, an authority must file an annual disclosure report for all tax increment financing districts. The report shall be filed with the school board, county board, and governing body of the municipality, if the authority is not the municipality, and the State Auditor. The report shall include the following information: 1. The original tax capacity value of the district; City of Mounds View TIF District No. 1 Modification 26 | P a g e 2. The captured tax capacity value of the district, including the amount of any captured tax capacity value shared with other taxing districts; 3. The outstanding principal amount of bonds issued or other loans incurred to finance project costs in the district; 4. For the reporting period and for the duration of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: (A) Acquisition of land and buildings through condemnation or purchase; (B) Site improvements or preparation costs; (C) Installation of public utilities or other public improvements; (D) Administrative costs, including the allocated cost of the authority; 5. For properties sold to developers, the total cost of the property to the authority and the price paid by the developer; 6. The amount of tax exempt obligations, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in the district. Additionally, the city must annually publish a statement in a newspaper of general circulation in the municipality showing the tax increment received and expended in that year, the original tax capacity value, the captured tax capacity value, amount of outstanding bonded indebtedness and any additional information the city deems necessary. Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment redevelopment district. These assumptions are based on discussions with city and county staff and city planning consultants. Z. Municipal Findings Pursuant to Minnesota Statutes, Section 273.74, Subdivision 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: 1. The proposed development or redevelopment, in the opinion of the city, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary since the developers could not construct and operate the redevelopment project without the necessary public improvements to service the City of Mounds View TIF District No. 1 Modification 27 | P a g e sites and without the use of tax increments to assist with the financing of the public improvements, the developers would not have constructed these developments in the City; and 2. The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the City to provide the necessary public improvements to service the Redevelopment sites; thereby encouraging redevelopment in the area. 3. The tax increment financing plan conforms to the general plan for the development of the city as a whole as it will result in the construction of a commercial/industrial development including an office/service facility, warehouse and restaurant, thereby encouraging other new commercial facilities and retention of business in the city. 1. The tax increment district to be established is a redevelopment district pursuant to Minnesota Statutes, Section 273.73, Subdivision 10 in which the conditions described in Part II, Section E, of this plan exist. (AS MODIFIED JUNE 12, 1989) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: 1. The proposed development or redevelopment, in the opinion of the city, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary since the developers could not construct and operate the redevelopment project without the necessary public improvements to service the sites and without the use of tax increments to assist with the financing of the public improvements, the developers would not have constructed these developments in the City; and 2. The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the City to provide the necessary public improvements to service the Redevelopment sites; thereby encouraging redevelopment in the area. 3. The tax increment financing plan conforms to the general plan for the development of the city as a whole as it will result in the construction of a commercial/industrial development including an office/service facility, warehouse and restaurant, thereby encouraging other new commercial facilities and retention of business in the city. 4. The tax increment district to be established is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10 in which the conditions described in Part II, Section E, of this plan exist. City of Mounds View TIF District No. 1 Modification 28 | P a g e (AS MODIFIED JUNE 12, 1989) ZZ. Fiscal Disparities Treatment The City elected the method of tax increment computation pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, clause (a), consequently, the district and Modification No. 1 shall continue with the election to spread the fiscal disparities contribution outside the tax increment district. (AS MODIFIED MARCH 26, 1990) The City elected the method of tax increment computation pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, clause (a), consequently, the district and Modification No. 2 shall continue with the election to spread the fiscal disparities contribution outside the tax increment district. City of Mounds View TIF District No. 1 Modification 29 | P a g e APPENDIX A MAP 1 MUNICIPAL DEVELOPMENT DISTRICT NO. 2 AND TAX INCREMENT FINANCING DISTRICT NO. 1 City of Mounds View TIF District No. 1 Modification 30 | P a g e APPENDIX B MAP 2 EXISTING LAND USE See original TIF Plan dated September 22, 1986. City of Mounds View TIF District No. 1 Modification 31 | P a g e APPENDIX C MUNICIPAL DEVELOPMENT DISTRICT and TAX INCREMENT DISTRICT PARCELS City of Mounds View TIF District No. 1 Modification 32 | P a g e (AS MODIFIED JUNE 12, 1989) City of Mounds View TIF District No. 1 Modification 33 | P a g e City of Mounds View TIF District No. 1 Modification 34 | P a g e (AS MODIFIED MARCH 26, 1990) City of Mounds View TIF District No. 1 Modification 35 | P a g e City of Mounds View TIF District No. 1 Modification 36 | P a g e (AS MODIFIED SEPTEMBER 13, 2004) Parcel number 06.30.23.44.0051 shall be eliminated from TIF District No. 1. (AS MODIFIED OCTOBER 8, 2012) TIF District No. 1 consists of the following parcels: 063023240084 083023310075 083023420010 083023430022 083023440008 063023240085 083023310076 083023420011 083023430023 083023440009 063023310028 083023410005 083023420012 083023430024 083023440011 063023310029 083023410008 083023420013 083023430024 083023440015 063023310030 083023410011 083023430004 083023430025 083023440017 063023310031 083023410013 083023430010 083023430025 063023310174 083023420001 083023430012 083023430036 063023310237 083023420004 083023430019 083023430037 083023240021 083023420005 083023430020 083023440004 083023240021 083023420009 083023430021 083023440007 City of Mounds View TIF District No. 1 Modification 37 | P a g e APPENDIX D ESTIMATE OF TAX INCREMENT AND BONDING City of Mounds View TIF District No. 1 Modification 38 | P a g e (AS MODIFIED JUNE 12, 1989) City of Mounds View TIF District No. 1 Modification 39 | P a g e (AS MODIFIED MARCH 26, 1990) City of Mounds View TIF District No. 1 Modification 40 | P a g e City of Mounds View TIF District No. 1 Modification 41 | P a g e APPENDIX E City of Mounds View TIF District No. 1 Modification 42 | P a g e (AS MODIFIED JUNE 12, 1989) City of Mounds View TIF District No. 1 Modification 43 | P a g e City of Mounds View TIF District No. 1 Modification 44 | P a g e (AS MODIFIED MARCH 26, 1990) City of Mounds View TIF District No. 1 Modification 45 | P a g e (AS MODIFIED NOVEMBER 13, 2000) City of Mounds View TIF District No. 1 Modification 46 | P a g e APPENDIX F CITY OF MOUNDS VIEW ADMINISTRATIVE GUIDE FOR THE ADMINISTRATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 2 City of Mounds View TIF District No. 1 Modification 47 | P a g e City of Mounds View TIF District No. 1 Modification 48 | P a g e Modification to the Tax Increment Redevelopment Plans for Tax Increment District No. 2, (a redevelopment district) within the Mounds View Economic Development Project Mounds View Economic Development Authority City of Mounds View Ramsey County State of Minnesota Originally Adopted: February 22, 1988 Modification No. 1 Adopted: May 9, 1994 Modification No. 2 Adopted: April 14, 1997 Modification No. 3 Adopted: August 14, 2000 Modification No. 4 Adopted: November 13, 2000 Modification No. 5 Adopted: June 28, 2004 Modification No. 9 Public Hearing Date: October 8, 2012 Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com As of September 25, 2012 Draft for Planning Commission City of Mounds View TIF District No. 2 Modification 1 | P a g e Tax Increment Redevelopment District Finance Plan #2 INTRODUCTION (AS MODIFIED NOVEMBER 13, 2000) The following is a modification to the Tax Increment Redevelopment Plan (the “Plan”) for Tax Increment District No.2. Generally, there are no substantive modification sto the Tax Increment Plan for Tax Increment Financing District No. 2. The purpose of the modification is to attempt to bring the Plan into compliance with the office of the State Auditor requirements as they are understood at this point in time. The following subsections are being modified in an attempt to clarify the Plan and clarify and restate the budgets in the Office of the State Auditor’s required format. (AS MODIFIED OCTOBER 8, 2012) Tax Increment Redevelopment District No. 2 is being modified by the City Council to authorize acquisition of parcels within the Mounds View Economic Development Project. The EDA and the City desire to continue redevelopment and development of blighted, foreclosed and underdeveloped property in the City. New redevelopment opportunities have arisen in areas located outside of Tax Increment Financing District No. 2 and within Mounds View Economic Development Project area. The proposed redevelopments will allow the City to acquire, rehabilitate, and/or demolish existing residential and commercial units, relocate existing businesses and residents, make necessary site improvements and resell the rehabilitated homes and/or vacant residential or commercial lots for development and allow the City to make necessary public improvements to roadways, sidewalks and utilities as required. A. Statutory Authority The City of Mounds View is authorized to establish a tax increment district pursuant to Minnesota Statutes, Sections 469.174 -469.179. B. Statement of Objectives See Section F, Part I of the original Development Program. C. Development Program 1. Description of Development Activities See Appendix "B" 2. Development Activities Covered by Contracts City of Mounds View TIF District No. 2 Modification 2 | P a g e See Appendix "B" 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project See Appendix "B" D. Description of Property in the Tax Increment Financing District. See Appendix "A" of this report for a list of property to be included in the proposed Tax Increment District. A map revealing the location of the tax increment parcels within the redevelopment project area is provided in Appendix "A". (AS MODIFIED ON OCTOBER 8, 2012) See Appendix "A" of this report for a list of the property located in the Tax Increment District. E. Classification of the Tax Increment Financing District The City Council of the City of Moundsview, Minnesota, in determining the need for a tax increment financing district in accordance with Minnesota Statutes, Sections 469.174 - 469.179, inclusive, finds that the district to be established is a redevelopment district pursuant to Minnesota Statutes Section 469.174, Subdivision 10(3). Please refer to Appendix "C" of this plan for eligibility statistics. The tax increment financing district appears to meet the statutory requirements of a redevelopment district and will henceforth be referred to as a redevelopment tax increment financing district. The parcels that have been used to establish eligibility as a redevelopment tax increment financing district have been listed in Appendix "F" of this plan. F. Parcels in Acquisition 1. Properties identified for acquisition may be acquired by the City in order to accomplish one or more of the following: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; to eliminate unhealthful, unsafe, and unsanitary structures and conditions; reduce traffic hazards; provide land for needed public streets, utilities, and facilities; remove incompatible land use, correct soil problems, eliminate obsolete or detrimental uses; assemble land for redevelopment; carry out clearance and/or redevelopment to accomplish the uses and objectives set forth in this plan. 2. Properties so identified include the following parcels: City of Mounds View TIF District No. 2 Modification 3 | P a g e See Appendix "F", Acquisition Parcels 3. Conditional Acquisition Parcels may be acquired by the City should they become necessary for future redevelopment with the condition that there is sufficient tax increment to finance the costs associated with the acquisition of these parcels. See Appendix "F" for conditional acquisition parcels. (AS MODIFIED OCTOBER 8, 2012) It is anticipated that the EDA or City will acquire and reconvey parcels located outside of the District but located within the Mounds View Economic Development Project, including interior and adjacent street rights of way, as identified below: 08-30-23-12-0068 06-30-23-41-0057 06-30-23-34-0062 06-30-23-44-0001 06-30-23-12-0008 08-30-23-12-0048 06-30-23-41-0050 06-30-23-31-0015 05-30-23-33-0004 06-30-23-14-0002 08-30-23-12-0052 06-30-23-41-0070 06-30-23-31-0043 06-30-23-41-0012 06-30-23-12-0078 05-30-23-23-0020 06-30-23-14-0011 06-30-23-31-0030 06-30-23-41-0010 06-30-23-12-0082 06-30-23-14-0032 06-30-23-14-0002 06-30-23-31-0031 05-30-23-32-0010 06-30-23-12-0081 06-30-23-14-0023 06-30-23-14-0018 06-30-23-31-0173 06-30-23-41-0009 06-30-23-12-0116 06-30-23-13-0029 06-30-23-14-0017 06-30-23-31-0033 06-30-23-41-0008 06-30-23-14-0068 06-30-23-13-0030 06-30-23-14-0016 06-30-23-31-0174 06-30-23-41-0007 05-30-23-23-0037 08-30-23-11-0003 06-30-23-14-0020 06-30-23-23-0045 05-30-23-32-0007 05-30-23-23-0038 08-30-23-11-0005 06-30-23-14-0052 06-30-23-23-0018 06-30-23-41-0004 06-30-23-14-0076 07-30-23-43-0088 06-30-23-14-0027 08-30-23-44-0008 05-30-23-32-0006 06-30-23-14-0075 08-30-23-13-0003 06-30-23-14-0061 08-30-23-44-0007 06-30-23-41-0003 06-30-23-14-0048 08-30-23-13-0006 06-30-23-14-0083 05-30-23-41-0006 05-30-23-32-0004 06-30-23-41-0026 07-30-23-21-0017 05-30-23-31-0056 05-30-23-41-0002 06-30-23-41-0001 06-30-23-14-0014 07-30-23-21-0018 05-30-23-32-0041 05-30-23-44-0008 06-30-23-14-0045 06-30-23-14-0012 07-30-23-21-0045 05-30-23-32-0042 05-30-23-44-0009 05-30-23-23-0056 06-30-23-13-0020 07-30-23-22-0014 05-30-23-32-0043 05-30-23-43-0004 05-30-23-23-0058 06-30-23-42-0039 07-30-23-23-0001 05-30-23-32-0045 05-30-23-42-0057 06-30-23-14-0069 06-30-23-31-0022 City of Mounds View TIF District No. 2 Modification 4 | P a g e 07-30-23-22-0035 05-30-23-32-0049 06-30-23-44-0063 05-30-23-23-0028 06-30-23-24-0022 07-30-23-23-0002 05-30-23-23-0043 06-30-23-44-0017 06-30-23-14-0059 07-30-23-24-0038 07-30-23-23-0003 05-30-23-23-0052 06-30-23-41-0039 05-30-23-23-0029 07-30-23-24-0039 08-30-23-14-0032 06-30-23-42-0058 06-30-23-44-0040 06-30-23-14-0034 07-30-23-23-0019 08-30-23-14-0034 06-30-23-31-0009 06-30-23-41-0041 05-30-23-23-0031 07-30-23-23-0034 08-30-23-14-0042 06-30-23-42-0061 06-30-23-44-0043 05-30-23-23-0032 07-30-23-23-0020 08-30-23-14-0045 06-30-23-31-0007 06-30-23-43-0022 06-30-23-11-0068 07-30-23-23-0033 08-30-23-14-0047 06-30-23-42-0064 06-30-23-42-0072 06-30-23-11-0035 07-30-23-23-0031 08-30-23-14-0046 06-30-23-31-0005 06-30-23-43-0030 06-30-23-11-0037 07-30-23-23-0029 08-30-23-43-0004 06-30-23-31-0003 06-30-23-42-0054 06-30-23-11-0092 07-30-23-23-0028 08-30-23-43-0012 06-30-23-42-0068 06-30-23-42-0057 06-30-23-11-0090 07-30-23-22-0007 08-30-23-33-0071 06-30-23-31-0002 06-30-23-42-0056 06-30-23-11-0034 07-30-23-22-0023 08-30-23-33-0065 06-30-23-42-0070 08-30-23-33-0025 06-30-23-12-0039 07-30-23-22-0024 08-30-23-33-0062 08-30-23-21-0039 08-30-23-24-0013 06-30-23-12-0080 06-30-23-34-0055 08-30-23-33-0060 06-30-23-14-0019 08-30-23-12-0076 06-30-23-14-0001 06-30-23-33-0001 07-30-23-34-0047 06-30-23-14-0073 07-30-23-34-0033 06-30-23-21-0111 06-30-23-23-0006 07-30-23-34-0046 06-30-23-44-0027 07-30-23-34-0044 07-30-23-42-0070 06-30-23-23-0007 07-30-23-34-0045 06-30-23-44-0011 07-30-23-34-0043 07-30-23-11-0031 06-30-23-23-0041 07-30-23-34-0034 06-30-23-44-0018 07-30-23-34-0042 17-30-23-14-0009 06-30-23-24-0071 07-30-23-33-0036 06-30-23-44-0013 07-30-23-34-0016 05-30-23-44-0026 06-30-23-23-0008 07-30-23-33-0014 06-30-23-44-0019 07-30-23-34-0005 05-30-23-44-0091 06-30-23-24-0070 08-30-23-24-0021 06-30-23-44-0016 07-30-23-34-0004 08-30-23-31-0061 06-30-23-23-0009 08-30-23-31-0005 06-30-23-41-0038 07-30-23-34-0013 17-30-23-14-0005 06-30-23-23-0010 08-30-23-32-0004 06-30-23-41-0036 07-30-23-34-0003 17-30-23-14-0004 06-30-23-24-0049 08-30-23-32-0006 06-30-23-41-0035 07-30-23-34-0002 17-30-23-14-0003 06-30-23-23-0027 08-30-23-32-0005 06-30-23-41-0015 07-30-23-31-0040 17-30-23-14-0002 06-30-23-22-0022 City of Mounds View TIF District No. 2 Modification 5 | P a g e 08-30-23-32-0007 06-30-23-41-0033 07-30-23-31-0049 17-30-23-14-0001 06-30-23-22-0021 08-30-23-32-0111 06-30-23-41-0019 07-30-23-31-0013 07-30-23-33-0015 06-30-23-22-0020 08-30-23-32-0108 06-30-23-41-0029 07-30-23-31-0012 07-30-23-33-0013 06-30-23-22-0016 08-30-23-32-0072 06-30-23-41-0028 07-30-23-31-0033 07-30-23-33-0029 06-30-23-22-0026 08-30-23-32-0107 06-30-23-41-0024 07-30-23-31-0032 07-30-23-33-0012 06-30-23-22-0091 07-30-23-31-0002 06-30-23-11-0017 07-30-23-31-0031 07-30-23-33-0011 06-30-23-22-0086 07-30-23-31-0004 07-30-23-24-0024 07-30-23-31-0010 07-30-23-33-0028 06-30-23-22-0077 07-30-23-24-0017 07-30-23-24-0005 07-30-23-31-0030 07-30-23-33-0010 08-30-23-24-0028 07-30-23-31-0025 07-30-23-21-0023 07-30-23-31-0029 07-30-23-33-0027 08-30-23-24-0043 07-30-23-24-0016 06-30-23-34-0080 07-30-23-24-0018 07-30-23-33-0025 07-30-23-42-0057 07-30-23-31-0026 06-30-23-34-0033 07-30-23-24-0019 07-30-23-33-0007 06-30-23-43-0117 07-30-23-31-0027 06-30-23-34-0016 07-30-23-24-0031 07-30-23-33-0006 06-30-23-42-0028 07-30-23-31-0028 06-30-23-34-0025 07-30-23-24-0030 07-30-23-33-0004 06-30-23-42-0005 07-30-23-32-0001 06-30-23-31-0042 07-30-23-24-0028 07-30-23-33-0003 05-30-23-44-0058 07-30-23-23-0015 06-30-23-31-0029 07-30-23-24-0011 07-30-23-33-0001 05-30-23-44-0059 07-30-23-23-0014 06-30-23-31-0016 07-30-23-24-0056 07-30-23-33-0020 05-30-23-44-0066 07-30-23-23-0013 06-30-23-31-0028 07-30-23-21-0049 07-30-23-22-0032 05-30-23-43-0064 07-30-23-23-0012 06-30-23-31-0017 07-30-23-21-0050 07-30-23-22-0031 05-30-23-43-0057 08-30-23-12-0050 06-30-23-31-0027 07-30-23-21-0061 07-30-23-22-0030 08-30-23-32-0049 08-30-23-12-0051 06-30-23-31-0026 07-30-23-21-0036 06-30-23-23-0021 08-30-23-32-0048 05-30-23-34-0063 06-30-23-31-0242 07-30-23-21-0055 06-30-23-23-0038 08-30-23-32-0043 08-30-23-21-0047 06-30-23-31-0019 07-30-23-21-0056 06-30-23-22-0085 07-30-23-31-0020 08-30-23-22-0007 06-30-23-31-0024 06-30-23-21-0077 08-30-23-44-0009 07-30-23-31-0019 08-30-23-22-0008 06-30-23-31-0007 08-30-23-13-0062 08-30-23-14-0065 07-30-23-32-0015 08-30-23-22-0040 06-30-23-31-0105 08-30-23-13-0028 08-30-23-14-0066 07-30-23-32-0013 05-30-23-33-0017 06-30-23-21-0104 08-30-23-13-0036 05-30-23-41-0018 07-30-23-32-0012 05-30-23-33-0098 06-30-23-21-0022 08-30-23-13-0065 05-30-23-41-0016 07-30-23-32-0011 City of Mounds View TIF District No. 2 Modification 6 | P a g e 06-30-23-44-0069 06-30-23-21-0026 05-30-23-24-0017 08-30-23-14-0029 07-30-23-32-0018 06-30-23-34-0010 06-30-23-21-0034 05-30-23-24-0041 06-30-23-12-0101 07-30-23-34-0035 07-30-23-22-0039 06-30-23-21-0036 05-30-23-24-0043 06-30-23-42-0055 07-30-23-43-0055 07-30-23-22-0027 06-30-23-21-0037 06-30-23-13-0048 06-30-23-42-0053 07-30-23-34-0055 07-30-23-22-0028 08-30-23-31-0070 06-30-23-13-0052 06-30-23-42-0030 07-30-23-34-0008 07-30-23-22-0029 08-30-23-42-0013 06-30-23-13-0054 06-30-23-42-0032 05-30-23-23-0021 06-30-23-22-0080 08-30-23-42-0005 06-30-23-24-0018 06-30-23-42-0034 05-30-23-23-0022 06-30-23-22-0089 08-30-23-42-0004 06-30-23-24-0022 06-30-23-42-0035 05-30-23-23-0023 06-30-23-22-0102 08-30-23-42-0003 06-30-23-31-0021 06-30-23-42-0044 05-30-23-23-0024 07-30-23-41-0140 08-30-23-31-0075 07-30-23-44-0115 06-30-23-13-0018 05-30-23-23-0025 06-30-23-44-0029 08-30-23-31-0069 08-30-23-33-0048 06-30-23-13-0045 05-30-23-23-0034 06-30-23-44-0030 08-30-23-31-0071 08-30-23-32-0075 06-30-23-12-0022 05-30-23-23-0035 06-30-23-44-0032 08-30-23-22-0039 08-30-23-32-0074 06-30-23-12-0018 05-30-23-32-0017 06-30-23-44-0050 06-30-23-43-0016 06-30-23-44-0059 06-30-23-12-0120 05-30-23-32-0038 06-30-23-44-0049 06-30-23-43-0028 05-30-23-33-0011 06-30-23-12-0103 05-30-23-32-0036 06-30-23-44-0048 06-30-23-43-0029 05-30-23-33-0010 06-30-23-12-0107 05-30-23-32-0022 06-30-23-44-0038 06-30-23-34-0001 05-30-23-33-0009 06-30-23-12-0122 05-30-23-32-0023 06-30-23-44-0041 06-30-23-31-0014 05-30-23-33-0007 06-30-23-12-0037 05-30-23-32-0026 05-30-23-32-0032 05-30-23-23-0048 05-30-23-23-0036 05-30-23-23-0049 06-30-23-14-0066 Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: carry out land acquisition; demolition of structures; rehabilitation of housing and commercial units; relocation; construction of new residential and commercial units; site improvements; storm sewer improvements; roadway improvements, provide land for needed public streets, sidewalks, alley ways, utilities and facilities to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. City of Mounds View TIF District No. 2 Modification 7 | P a g e G. Estimate of Costs The public costs associated with this project are outlined in Appendix "D", Project Costs. It is expected that the public costs will be financed by the City. (AS MODIFIED NOVEMBER 13, 2000) The budget history and estimate of authorized public costs associated with this project are outlined in Appendix “D”, Estimate of Project Costs. H. Estimated Amount of Indebtedness See Appendix "D" of this Plan. (AS MODIFIED NOVEMBER 13, 2000) The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the Modified Plan. The projects have been financed by bond issues, inter-fund loans and transfers. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $36,000,000 without a modification to the Plan pursuant to applicable statutory requirements. See Appendix B of this Plan. I. Sources of Revenue The principle source of revenue to be used to finance public costs associated with the projects in the redevelopment project is tax increment financing. Tax increment financing refers to a funding technique that utilizes increases in assessed valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. See Appendix "E" for Revenue Projections. The City may from time to time utilize other revenue sources to finance public costs. (AS MODIFIED NOVEMBER 13, 2000) The principle source of revenue to be used to finance public costs associated with the projects in the redevelopment project is tax increment financing. The City reserves the right to use other sources of revenue legally applicable to the Modification to the Municipal Development District Plan and the Modified Plan, including, but not limited to, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer, investment income, and undesignated municipal funds to pay for the estimated public costs. Appendix B includes a detailed estimate of the Sources of Revenue being authorized for the District. City of Mounds View TIF District No. 2 Modification 8 | P a g e J. Original Assessed Value Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Section 469.177, Subdivision 1, the Original Assessed Value (OAV) for the City of Moundsview tax increment financing redevelopment district is based on the value placed on the property by the County Assessor in 1987. This assessed value is $710,000. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax increment redevelopment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total assessed valuation in the tax increment redevelopment district above the adjusted original assessed value, a tax increment will be payable. In any year in which the total assessed val uation in the tax increment financing redevelopment district declines below the original assessed valuation, no assessed valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the Ori ginal Assessed Value was certified, the amount the OAV has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to stipulations, adjustments, negotiated or court-ordered abatements. K. Estimated Captured Assessed Value Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated present value of Captured Assessed Value (CAV) of the tax increment financing redevelopment district, _with all phases completed, will annually approximate $1,122,200 to $1,447,000. This amount may be captured in phases (see Appendix "E") for up to twenty-five years or until the debt is retired. L. Duration of the District Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, the duration of the tax increment district within the Development District must be indicated within the finance plan. The duration of the tax increment district will be 25 years from the date of receipt of the first tax increment, including any modifications to the finance plan for subsequent phases or other changes. (AS MODIFIED OCTOBER 8, 2012) Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 25 years after receipt of the f irst increment by the City (a total of 26 years of tax increment). The date of receipt by the City of the first tax increment was 1990. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, City of Mounds View TIF District No. 2 Modification 9 | P a g e would terminate after December 31, 2015, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. M. Estimated Impact on Other Taxing Jurisdictions The impact of the loss of tax dollars represented as tax increments is estimated below for each taxing jurisdiction. This estimate is based on the existing redevelopment proposals and does not include the possible tax increments derived from any other future development, mill changes, or inflation factors. Total Assessed Value Tax Increment Finance District 1/2/87 Total $710,000 Latest Assessed Value of Each Government Body: % of District to Total Ramsey County $3,315,892,299 .0021 School district #621 $605,174,784 .1170 City of Moundsview $59,887,551 1.1860 Considering all the districts, it can be seen from the above that the school and county districts will have over 99% of each respective district available for normal growth of tax base or valuation. Applying the percentage of the total mill rate estimate in 1988 levied by each taxing jurisdiction to the projected mill rate and the estimated tax increment received reveals the annual loss of tax dollars by each taxing jurisdiction as listed in the table below ASSUMING DEVELOPMENT WOULD OCCUR WITHOUT PUBLIC ASSISTANCE. The finance plan indicates an anticipated tax increment at build out as follows: Captured Assessed Valuation Tax Increment Received Tax Increment Finance District $1,447,000 $169,300 Based on an estimated mill rate, the estimated taxes received would be as follows for the taxing bodies: Mills Percent Tax Increment City 16.742 14.3% $24.210 County 33.730 28.8 48,758 School District 59.076 50.5 85,496 Other 7.378 6.4 10,836 Total 116.926 100.00% $169,300 City of Mounds View TIF District No. 2 Modification 10 | P a g e The following table represents the additional mills that would have to be levied to compensate for the loss of tax dollars in estimated tax increments for each taxing jurisdiction. The tax increments derived from the development alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. Although the increases in assessed value due to development will not be available for the application of the mill levy for the duration of the tax increment financing district, this new assessed value could eventually permit a mill levy decrease. If it could be assumed that the captured assessed value was available for each taxing jurisdiction, the non-receipt of tax dollars represented as tax increments may be determined. This determination is facilitated by estimating how much the mill levy for property outside of the tax increment financing district would have to be increased to raise the same amount of tax dollars in each taxing jurisdiction that would be available if the projects occurred WITHOUT THE ASSISTANCE OF THE CITY. Adjusted* Assessed Value Required Mills Without F.D. Contribution School District $604,464,784 .141 85,496 County $3,315,182,299 .015 48,758 City $59,177,551 .409 24,210 *Tax Increment District assessed valuation subtracted. N. Modifications of the Tax Increment Financing District In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination or capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured assessed value to be retained by the City, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the authority shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years followi ng the date of certification of the original assessed value by the county auditor. The tax increment financing redevelopment district may therefore be expanded until 1993. O. Limitation on Administrative Expenses In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.174, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or City of Mounds View TIF District No. 2 Modification 11 | P a g e sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Tax Increment Financing Districts Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, "no tax increment shall be paid to an authority ... three years from the date of certification ... by the County Auditor ... unless within the three-year period (1) bonds have been issued pursuant to Section 469.178 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 through 469.165, prior to August 1, 1979; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district ... 11 The City must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1991 or the Office of the County Auditor may dissolve the tax increment financing district. Q. Limitation on Qualification of Property in Tax Increment District Not Su bject to Improvement Pursuant to Minnesota Statutes Section 469.176, Subdivision 6, "if, after four years from the date of certification of the original assessed value of the tax increment financing district, no demolition, rehabilitation or renovation of parcel or other site preparation including improvement of a street adjacent to a property but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment. financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original assessed value of that parcel shall be excluded from the original assessed value of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor in the annual disclosure report that the activity has commenced. The county auditor shall certify the assessed value thereof as most recently certified by the com missi oner of revenue and add it to the original assessed value of the tax increment financing district. R. Limitation on the Use of Tax Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minnesota Statutes, Chapter 469. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipal owned building used primarily and regularly for conducting the business of the municipality; this provision shall not prohibit the use of revenues derived from tax increments for the construction or City of Mounds View TIF District No. 2 Modification 12 | P a g e renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. S. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes Section 469.177, Subdivision 4, the City has reviewed and searched the properties to be included in the tax increment financing redevelopment district and found no properties for which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the city. If the building permit had been issued within the 18 month period preceding approval of the tax increment financing plan by the city, the county auditor shall increase the original assessed value of the district by the assessed valuation of the improvements for which the building permit was issued, EXCLUDING THE ASSESSED VALUATION OF IMPROVEMENTS FOR WHICH A BUILDING PERMIT WAS ISSUED DURING THE THREE MONTH PERIOD IMMEDIATELY PRECEDING SAID APPROVAL OF THE TAX INCREMENT FINANCING PLAN BY THE CITY COUNCIL. T. Excess Tax Increments Pursuant to Minnesota Statutes, Section 469.176, Subdivision 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.61, Subdivision 3, the City shall use the excess amount to: 1. prepay the outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; 4. repay any loans including interest on these loans; or 5. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their mill rate. U. Requirement for Agreements with the Developer Pursuant to Minnesota Statutes Section 469.174, Subdivision 10(3), no parcel shall be included within a redevelopment district pursuant to this paragraph unless the authority has concluded an agreement for the development of at least 50% of the acreage having the unusual soil or terrain deficiencies which agreement provides recour se for the City should the development not be completed. V. Assessment Agreements Pursuant to Minnesota Statutes Section 469.177, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 469.176, Subdivision 5, enter into an agreement in recordable form with the developer of property City of Mounds View TIF District No. 2 Modification 13 | P a g e within the tax increment financing district which establishes a minimum market value of the land and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements ar e to be constructed and so long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tax Increment Financing Redevelopment District and Maintenance of the Tax Increment Account Administration of the tax increment financing redevelopment district will be handled by the Office of the City Manager. The tax increment received as a result of increases in the assessed value of the tax increment financing redevelopment district will be maintained in a special account separate from all other municipal accounts and expended only upon sanctioned municipal a ctivities identified in the finance plan. (AS MODIFIED NOVEMBER 13, 2000) Administration of the tax increment financing redevelopment district will be handled by the City of Mounds View’s E.D.A. Executive Director. Consistent with Minnesota Statutes, Section 469.177, Subdivision 5, requiring that “tax increment received with respect to any district shall be segregated by the authority in a special account or accounts on its official books and records or as otherwise established by resolution of the authority to be held by a trustee or trustees for the benefit of holders of the bond,” the EDA will account for all increment for all increment from the Tax Increment Districts in one or more accounts for the proper accounting and implementation of the Tax increment Financing Districts and the portion of the Project to be financed directly or indirectly with tax increment. The right to make appropriate transfers in and out of such accounts is hereby reserved, along with the right to make both external and in ternal interest bearing borrowings, whether long term or short term, including transfers from other city or EDA funds to cash flow tax increment obligations and other legitimate expenditures. X. Annual Disclosure Requirements Pursuant to Minnesota Statutes, Section 469.175, Subdivision 5, an authority must file an annual disclosure report for all tax increment financing districts. The report shall be filed with the school board, county board and the Minnesota Department of Trade and Economic Development. The report shall include the following information: 1. The original assessed value of the district; 2. The captured assessed value of the district, including the amount of any captured assessed value shared with other taxing districts; City of Mounds View TIF District No. 2 Modification 14 | P a g e 3. The outstanding principal amount of bonds issued or other loans insured to finance project costs in the district; 4. For the reporting period and for the duration of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: a. Acquisition of land and buildings through condemnation or purchase; b. Site improvements or preparation costs; c. Installation of public utilities or other public improvements; d. Administrative costs, including the allocated cost of the authority. 5. For properties sold to developers, the total cost of the property to the authority and the price paid by the developer; 6. The amount of tax exempt obligations, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in the district. Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment redevelopment district. These assumptions are based on discussions with city officials and developers. Z. Municipal Findings Pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth the reasons and supporting information for the determination (see Appendix B): 1. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary since the developers could not construct the improvements without the use of tax increments to assist with the financing of soil correction; and 2. The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the City to provide a suitable site, via soil correction for development; thereby encouraging development in the area. 3. The tax increment financing plan conforms to the general plan for the development of the city as a whole. 4. The tax increment district to be established is a redevelopment district pursuant to City of Mounds View TIF District No. 2 Modification 15 | P a g e Minnesota Statutes, Section 469.174, Subdivision 10 in which the conditions described in Section E of this plan exist. ZZ. Fiscal Disparities Treatment The City will elect the method of tax increment computation pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, clause (a), consequently, the district shall be created with the election to spread the fiscal dispar ities contribution outside the tax increment district. City of Mounds View TIF District No. 2 Modification 16 | P a g e APPENDIX A PROPERTY IDENTIFICATION NO. 07-30-23-12-0011-4 07-30-23-12-0010-1 07-30-23-12-0012-0 06-30-23-43-0010-8 06-30-23-43-0011-1 06-30-23-43-0002-7 06-30-23-43-0003-0 06-30-23-43-0004-3 06-30-23-43-0005-6 06-30-23-43-0006-9 06-30-23-43-0007-2 06-30-23-43-0008-5 06-30-23-43-0009-8 06-30-23-43-0001 06-30-23-34-0001-2 06-30-23-34-0003-8 06-30-23-34-0004-1 06-30-23-34-0005-4 06-30-23-34-0008-3 06-30-23-34-0010-6 06-30-23-34-0011-9 06-30-23-34-0012-2 06-30-23-34-0013-5 06-30-23-34-0014-8 06-30-23-34-0016-4 06-30-23-34-0017-7 06-30-23-34-0018-0 06-30-23-34-0019-3 06-30-23-34-0061-4 06-30-23-34-0062-7 City of Mounds View TIF District No. 2 Modification 17 | P a g e (AS MODIFIED SEPTEMBER 13, 2004) The following parcels were eliminated from TIF District No. 2 by Resolution Number 6341: City of Mounds View TIF District No. 2 Modification 18 | P a g e City of Mounds View TIF District No. 2 Modification 19 | P a g e (AS MODIFIED OCTOBER 8, 2012) The following parcels are located within TIF District No. 2: 063023340010 063023340016 063023340017 063023340018 063023340061 063023340062 063023340066 063023340066 063023340078 063023340089 063023340090 063023340091 063023430011 063023430040 073023120002 073023120002 073023120010 073023120011 City of Mounds View TIF District No. 2 Modification 20 | P a g e City of Mounds View TIF District No. 2 Modification 21 | P a g e APPENDIX B DISTRICT STATUS The "Highway 10 Corridor" Municipal Development District was conceived in 1985 on the basis of the physical and economic relationships to the various projects and land uses both proposed and existing. Also, by upgrading the corridor, a new image will evolve that will complement the short and long range goals of the City's various plans. The visual impact in itself will be a benefit to the citizens of Mounds View as well as other passing through the community via Highway 10. The case is made for this concept via the co-dependence of the various land uses within and without all three districts. The flow of jobs to the industrial park form the residential, the commercial to support the residential and industrial while providing improved recreational facilities to compliment all three land uses. Creating several tax increment districts assures the long term financing of the upgrading of the corridor. By providing nucleus of development within the districts, unassisted private development will be more likely to develop alongside of the districts. The initial investment of tax increments into these areas will be crucial to the success of this undertaking. Current Projects This plan proposes to assist 100,000 square feet of commercial space. The type of assistance will be the traditional use of tax increments that includes public improvements as well as land assembly. While creating new construction, a considerable amount of blight can be eliminated both economically and visually. Without the assistance, the development could not afford the cost of assembly with or without buildings. Current Contracts There are no contracts that the City has entered into at this time with any developers within the tax increment district. However, the City is currently negotiating with a developer for a proposed 100,000 square foot commercial center. City of Mounds View TIF District No. 2 Modification 22 | P a g e APPENDIX C ELIGIBILITY City of Mounds View TIF District No. 2 Modification 23 | P a g e APPENDIX D PROJECT COSTS City of Mounds View TIF District No. 2 Modification 24 | P a g e (AS MODIFIED NOVEMBER 13, 2000) City of Mounds View TIF District No. 2 Modification 25 | P a g e APPENDIX E City of Mounds View TIF District No. 2 Modification 26 | P a g e APPENDIX F DATA SUMMARY See original TIF Plan dated February 22, 1988. City of Mounds View TIF District No. 2 Modification 27 | P a g e APPENDIX G DEFINITIONS See original TIF Plan dated February 22, 1988. Modification to the Tax Increment Redevelopment Plans for Tax Increment District No. 3, (a redevelopment district) within the Mounds View Economic Development Project MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CITY OF MOUNDS VIEW RAMSEY COUNTY STATE OF MINNESOTA Originally Adopted: February 22, 1988 Modification No. 1 Adopted: March 13, 1989 Modification No. 2 Adopted: May 9, 1994 Modification No. 3 Adopted: April 14, 1997 Modification No. 4 Adopted: August 14, 2000 Modification No. 5 Adopted: November 13, 2000 Modification No. 6 Adopted: August 22, 2005 Modification No. 7 Adopted: February 13, 2006 Modification No. 8 Public Hearing Date: October 8, 2012 Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com As of September 25, 2012 Draft for Planning Commission City of Mounds View TIF District No. 3 Modification 1 | P a g e Tax Increment Redevelopment District Finance Plan #3 INTRODUCTION (AS MODIFIED NOVEMBER 13, 2000) The following is a modification to the Tax Increment Redevelopment Plan (the “Plan”) for Tax Increment District No. 2. Generally, there are no substantive modifications to the Tax Increment Plan for Tax Increment Financing District No. 3. The purpose of the modification is to attempt to bring the Plan into compliance with the Office of the State Auditor requirements as they are understood at this point in time. The following subsections are being modified in an attempt to clarify the Plan and clarify and restate the budgets in the office of the State Auditor’s required format. (AS MODIFIED OCTOBER 8, 2012) Tax Increment Redevelopment District No. 3 is being modified by the City Council to authorize acquisition of parcels within the Mounds View Economic Development Project. The EDA and the City desire to continue redevelopment and development of blighted, foreclosed and underdeveloped property in the City. New redevelopment opportunities have arisen in areas located outside of Tax Increment Financing District No. 3 and within Mounds View Economic Development Project area. The proposed redevelopments will allow the City to acquire, rehabilitate, and/or demolish existing residential and commercial units, relocate existing businesses and residents, make necessary site improvements and resell the rehabilitated homes and/or vacant residential or commercial lots for development and allow the City to make necessary public improvements to roadways, sidewalks and utilities as required. A. Statutory Authority The City of Mounds View is authorized to modify a tax increment district pursuant to Minnesota Statutes, Sections 469.174 -469.179. B. Statement of Objectives See Section C of the Development Program, Part 1. C. Development Program 1. Description of Development Activities See Appendix "B" 2. Development Activities Covered by Contracts See Appendix "B" City of Mounds View TIF Distric t No. 3 Modification 2 | P a g e 3. Other Development Not Under Contract Reasonably Expected to Occur in the Project See Appendix "B" 4. Also, see Section B of the Development Program, Part I. D. Description of Property in the Tax Increment Financing District. See Appendix "A" of this report for a list of property included in the existing Tax Increment District. A map revealing the location of the tax increment parcels within the redevelopment project area is provided in Appendix "A". (AS MODIFIED ON OCTOBER 8, 2012) See Appendix "A" of this report for a list of the property located in the Tax Increment District. E. Classification of the Tax Increment Financing District The City Council of the City of Mounds View, Minnesota, in determining the need for a tax increment financing district in accordance with Minnesota Statutes, Sections 469.174 - 469.179, inclusive, finds that the district to be established is a redevelopment district pursuant to Minnesota Statutes Section 469.174, Subdivision 10(3). Please refer to Appendix "C" of this plan for eligibility rational. The tax increment financing district appears to meet the statutory requirements of a redevelopment district and will henceforth be referred to as a redevelopment tax increment financing district. The parcels that have been used to establish eligibility as a redevelopment tax increment financing district have been listed in Appendix "F" of this plan. F. Parcels in Acquisition 1. Properties identified for acquisition may be acquired by the City in order to accomplish one or more of the following: remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and deterioration; to eliminate unhealthful, unsafe, and unsanitary structures and conditions; reduce traffic hazards; provide land for needed public streets, utilities, and facilities; remove incompatible land use, correct soil problems, eliminate obsolete or detrimental uses ; assemble land for redevelopment; carry out clearance and/or redevelopment to accomplish the uses and objectives set forth in this plan. 2. Properties so identified include the following parcels: State of Minnesota Excess Taking Doc. 1632844-5 City of Mounds View TIF Distric t No. 3 Modification 3 | P a g e 3. Conditional Acquisition Parcels may be acquired by the City should they become necessary for future redevelopment with the condition that there is sufficient tax increment to finance the costs associated with the acquisition of these parcels. See Appendix "F" for conditional acquisition parcels. (AS MODIFIED OCTOBER 8, 2012) It is anticipated that the EDA or City will acquire and reconvey parcels located outside of the District but located within the Mounds View Economic Development Project, including interior and adjacent street rights of way, as identified below: 08-30-23-12-0068 06-30-23-41-0057 06-30-23-34-0062 06-30-23-44-0001 06-30-23-12-0008 08-30-23-12-0048 06-30-23-41-0050 06-30-23-31-0015 05-30-23-33-0004 06-30-23-14-0002 08-30-23-12-0052 06-30-23-41-0070 06-30-23-31-0043 06-30-23-41-0012 06-30-23-12-0078 05-30-23-23-0020 06-30-23-14-0011 06-30-23-31-0030 06-30-23-41-0010 06-30-23-12-0082 06-30-23-14-0032 06-30-23-14-0002 06-30-23-31-0031 05-30-23-32-0010 06-30-23-12-0081 06-30-23-14-0023 06-30-23-14-0018 06-30-23-31-0173 06-30-23-41-0009 06-30-23-12-0116 06-30-23-13-0029 06-30-23-14-0017 06-30-23-31-0033 06-30-23-41-0008 06-30-23-14-0068 06-30-23-13-0030 06-30-23-14-0016 06-30-23-31-0174 06-30-23-41-0007 05-30-23-23-0037 08-30-23-11-0003 06-30-23-14-0020 06-30-23-23-0045 05-30-23-32-0007 05-30-23-23-0038 08-30-23-11-0005 06-30-23-14-0052 06-30-23-23-0018 06-30-23-41-0004 06-30-23-14-0076 07-30-23-43-0088 06-30-23-14-0027 08-30-23-44-0008 05-30-23-32-0006 06-30-23-14-0075 08-30-23-13-0003 06-30-23-14-0061 08-30-23-44-0007 06-30-23-41-0003 06-30-23-14-0048 08-30-23-13-0006 06-30-23-14-0083 05-30-23-41-0006 05-30-23-32-0004 06-30-23-41-0026 07-30-23-21-0017 05-30-23-31-0056 05-30-23-41-0002 06-30-23-41-0001 06-30-23-14-0014 07-30-23-21-0018 05-30-23-32-0041 05-30-23-44-0008 06-30-23-14-0045 06-30-23-14-0012 07-30-23-21-0045 05-30-23-32-0042 05-30-23-44-0009 05-30-23-23-0056 06-30-23-13-0020 07-30-23-22-0014 05-30-23-32-0043 05-30-23-43-0004 05-30-23-23-0058 06-30-23-42-0039 07-30-23-23-0001 05-30-23-32-0045 05-30-23-42-0057 06-30-23-14-0069 06-30-23-31-0022 07-30-23-22-0035 05-30-23-32-0049 06-30-23-44-0063 05-30-23-23-0028 06-30-23-24-0022 07-30-23-23-0002 05-30-23-23-0043 06-30-23-44-0017 06-30-23-14-0059 07-30-23-24-0038 07-30-23-23-0003 05-30-23-23-0052 06-30-23-41-0039 05-30-23-23-0029 07-30-23-24-0039 08-30-23-14-0032 06-30-23-42-0058 06-30-23-44-0040 06-30-23-14-0034 07-30-23-23-0019 08-30-23-14-0034 06-30-23-31-0009 06-30-23-41-0041 05-30-23-23-0031 07-30-23-23-0034 08-30-23-14-0042 06-30-23-42-0061 06-30-23-44-0043 05-30-23-23-0032 07-30-23-23-0020 08-30-23-14-0045 06-30-23-31-0007 06-30-23-43-0022 06-30-23-11-0068 07-30-23-23-0033 City of Mounds View TIF Distric t No. 3 Modification 4 | P a g e 08-30-23-14-0047 06-30-23-42-0064 06-30-23-42-0072 06-30-23-11-0035 07-30-23-23-0031 08-30-23-14-0046 06-30-23-31-0005 06-30-23-43-0030 06-30-23-11-0037 07-30-23-23-0029 08-30-23-43-0004 06-30-23-31-0003 06-30-23-42-0054 06-30-23-11-0092 07-30-23-23-0028 08-30-23-43-0012 06-30-23-42-0068 06-30-23-42-0057 06-30-23-11-0090 07-30-23-22-0007 08-30-23-33-0071 06-30-23-31-0002 06-30-23-42-0056 06-30-23-11-0034 07-30-23-22-0023 08-30-23-33-0065 06-30-23-42-0070 08-30-23-33-0025 06-30-23-12-0039 07-30-23-22-0024 08-30-23-33-0062 08-30-23-21-0039 08-30-23-24-0013 06-30-23-12-0080 06-30-23-34-0055 08-30-23-33-0060 06-30-23-14-0019 08-30-23-12-0076 06-30-23-14-0001 06-30-23-33-0001 07-30-23-34-0047 06-30-23-14-0073 07-30-23-34-0033 06-30-23-21-0111 06-30-23-23-0006 07-30-23-34-0046 06-30-23-44-0027 07-30-23-34-0044 07-30-23-42-0070 06-30-23-23-0007 07-30-23-34-0045 06-30-23-44-0011 07-30-23-34-0043 07-30-23-11-0031 06-30-23-23-0041 07-30-23-34-0034 06-30-23-44-0018 07-30-23-34-0042 17-30-23-14-0009 06-30-23-24-0071 07-30-23-33-0036 06-30-23-44-0013 07-30-23-34-0016 05-30-23-44-0026 06-30-23-23-0008 07-30-23-33-0014 06-30-23-44-0019 07-30-23-34-0005 05-30-23-44-0091 06-30-23-24-0070 08-30-23-24-0021 06-30-23-44-0016 07-30-23-34-0004 08-30-23-31-0061 06-30-23-23-0009 08-30-23-31-0005 06-30-23-41-0038 07-30-23-34-0013 17-30-23-14-0005 06-30-23-23-0010 08-30-23-32-0004 06-30-23-41-0036 07-30-23-34-0003 17-30-23-14-0004 06-30-23-24-0049 08-30-23-32-0006 06-30-23-41-0035 07-30-23-34-0002 17-30-23-14-0003 06-30-23-23-0027 08-30-23-32-0005 06-30-23-41-0015 07-30-23-31-0040 17-30-23-14-0002 06-30-23-22-0022 08-30-23-32-0007 06-30-23-41-0033 07-30-23-31-0049 17-30-23-14-0001 06-30-23-22-0021 08-30-23-32-0111 06-30-23-41-0019 07-30-23-31-0013 07-30-23-33-0015 06-30-23-22-0020 08-30-23-32-0108 06-30-23-41-0029 07-30-23-31-0012 07-30-23-33-0013 06-30-23-22-0016 08-30-23-32-0072 06-30-23-41-0028 07-30-23-31-0033 07-30-23-33-0029 06-30-23-22-0026 08-30-23-32-0107 06-30-23-41-0024 07-30-23-31-0032 07-30-23-33-0012 06-30-23-22-0091 07-30-23-31-0002 06-30-23-11-0017 07-30-23-31-0031 07-30-23-33-0011 06-30-23-22-0086 07-30-23-31-0004 07-30-23-24-0024 07-30-23-31-0010 07-30-23-33-0028 06-30-23-22-0077 07-30-23-24-0017 07-30-23-24-0005 07-30-23-31-0030 07-30-23-33-0010 08-30-23-24-0028 07-30-23-31-0025 07-30-23-21-0023 07-30-23-31-0029 07-30-23-33-0027 08-30-23-24-0043 07-30-23-24-0016 06-30-23-34-0080 07-30-23-24-0018 07-30-23-33-0025 07-30-23-42-0057 07-30-23-31-0026 06-30-23-34-0033 07-30-23-24-0019 07-30-23-33-0007 06-30-23-43-0117 07-30-23-31-0027 06-30-23-34-0016 07-30-23-24-0031 07-30-23-33-0006 06-30-23-42-0028 07-30-23-31-0028 06-30-23-34-0025 07-30-23-24-0030 07-30-23-33-0004 06-30-23-42-0005 07-30-23-32-0001 06-30-23-31-0042 07-30-23-24-0028 07-30-23-33-0003 05-30-23-44-0058 07-30-23-23-0015 06-30-23-31-0029 07-30-23-24-0011 07-30-23-33-0001 05-30-23-44-0059 07-30-23-23-0014 06-30-23-31-0016 07-30-23-24-0056 07-30-23-33-0020 05-30-23-44-0066 07-30-23-23-0013 06-30-23-31-0028 07-30-23-21-0049 07-30-23-22-0032 05-30-23-43-0064 City of Mounds View TIF Distric t No. 3 Modification 5 | P a g e 07-30-23-23-0012 06-30-23-31-0017 07-30-23-21-0050 07-30-23-22-0031 05-30-23-43-0057 08-30-23-12-0050 06-30-23-31-0027 07-30-23-21-0061 07-30-23-22-0030 08-30-23-32-0049 08-30-23-12-0051 06-30-23-31-0026 07-30-23-21-0036 06-30-23-23-0021 08-30-23-32-0048 05-30-23-34-0063 06-30-23-31-0242 07-30-23-21-0055 06-30-23-23-0038 08-30-23-32-0043 08-30-23-21-0047 06-30-23-31-0019 07-30-23-21-0056 06-30-23-22-0085 07-30-23-31-0020 08-30-23-22-0007 06-30-23-31-0024 06-30-23-21-0077 08-30-23-44-0009 07-30-23-31-0019 08-30-23-22-0008 06-30-23-31-0007 08-30-23-13-0062 08-30-23-14-0065 07-30-23-32-0015 08-30-23-22-0040 06-30-23-31-0105 08-30-23-13-0028 08-30-23-14-0066 07-30-23-32-0013 05-30-23-33-0017 06-30-23-21-0104 08-30-23-13-0036 05-30-23-41-0018 07-30-23-32-0012 05-30-23-33-0098 06-30-23-21-0022 08-30-23-13-0065 05-30-23-41-0016 07-30-23-32-0011 06-30-23-44-0069 06-30-23-21-0026 05-30-23-24-0017 08-30-23-14-0029 07-30-23-32-0018 06-30-23-34-0010 06-30-23-21-0034 05-30-23-24-0041 06-30-23-12-0101 07-30-23-34-0035 07-30-23-22-0039 06-30-23-21-0036 05-30-23-24-0043 06-30-23-42-0055 07-30-23-43-0055 07-30-23-22-0027 06-30-23-21-0037 06-30-23-13-0048 06-30-23-42-0053 07-30-23-34-0055 07-30-23-22-0028 08-30-23-31-0070 06-30-23-13-0052 06-30-23-42-0030 07-30-23-34-0008 07-30-23-22-0029 08-30-23-42-0013 06-30-23-13-0054 06-30-23-42-0032 05-30-23-23-0021 06-30-23-22-0080 08-30-23-42-0005 06-30-23-24-0018 06-30-23-42-0034 05-30-23-23-0022 06-30-23-22-0089 08-30-23-42-0004 06-30-23-24-0022 06-30-23-42-0035 05-30-23-23-0023 06-30-23-22-0102 08-30-23-42-0003 06-30-23-31-0021 06-30-23-42-0044 05-30-23-23-0024 07-30-23-41-0140 08-30-23-31-0075 07-30-23-44-0115 06-30-23-13-0018 05-30-23-23-0025 06-30-23-44-0029 08-30-23-31-0069 08-30-23-33-0048 06-30-23-13-0045 05-30-23-23-0034 06-30-23-44-0030 08-30-23-31-0071 08-30-23-32-0075 06-30-23-12-0022 05-30-23-23-0035 06-30-23-44-0032 08-30-23-22-0039 08-30-23-32-0074 06-30-23-12-0018 05-30-23-32-0017 06-30-23-44-0050 06-30-23-43-0016 06-30-23-44-0059 06-30-23-12-0120 05-30-23-32-0038 06-30-23-44-0049 06-30-23-43-0028 05-30-23-33-0011 06-30-23-12-0103 05-30-23-32-0036 06-30-23-44-0048 06-30-23-43-0029 05-30-23-33-0010 06-30-23-12-0107 05-30-23-32-0022 06-30-23-44-0038 06-30-23-34-0001 05-30-23-33-0009 06-30-23-12-0122 05-30-23-32-0023 06-30-23-44-0041 06-30-23-31-0014 05-30-23-33-0007 06-30-23-12-0037 05-30-23-32-0026 05-30-23-32-0032 05-30-23-23-0048 05-30-23-23-0036 05-30-23-23-0049 06-30-23-14-0066 Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: carry out land acquisition; demolition of structures; rehabilitation of housing and commercial units; relocation; construction of new residential and commercial units; site improvements; storm sewer improvements; roadway improvements, provide land for needed public streets, sidewalks, alley ways, utilities and facilities to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the City of Mounds View TIF Distric t No. 3 Modification 6 | P a g e objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. G. Estimate of Costs The public costs associated with this project are outlined in Appendix "D", Project Costs. It is expected that the public costs will be financed by the City. (AS MODIFIED NOVEMBER 13, 2000) The budget history and estimate of authorized public costs associated with this project are outlined in Appendix “D”, Budget History and Estimate of Project Costs. H. Estimated Amount of Indebtedness See Appendix "D" of this Plan. I. Sources of Revenue The principle source of revenue to be used to finance public costs associated with the projects in the redevelopment project is tax increment financing. Tax increment financing refers to a funding technique that utilizes increases in tax capacity valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. See Appendix "E" for Revenue Projections. The City may from time to time utilize other revenue sources to finance public costs. (AS MODIFIED NOVEMBER 13, 2000) The principal source of revenue to be used to finance public costs associated with the projects in the redevelopment project is tax increment financing. The City reserves the right to use other sources of revenue legally applicable to the Modification to the Municipal Development District Plan and the Modified Plan, including, but not limited to, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer, investment income, and undesignated municipal funds to pay for the estimated public costs. Appendix D includes a detailed estimate of the Sources of Revenue being authorized for the District. J. Original Tax Capacity Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Section 469.177, Subdivision 1, the Original Assessed Capacity (OAC) for the City of Mounds View tax increment financing redevelopment district #3 is based on the value placed on the property by the County Assessor in 1987. This assessed value is $86,246. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax increment redevelopment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total assessed valuation, no assessed valuation in the tax increment redevelopment district above the adjusted original assessed value, a tax increment will be payable. In any year in which the City of Mounds View TIF Distric t No. 3 Modification 7 | P a g e total assessed valuation in the tax increment financing redevelopment district declines below the original assessed valuation, no assessed valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the Original Assessed Value was certified, the amount the OAV has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to stipulations, adjustments, negotiated or court-ordered abatements. (AS MODIFIED MARCH 26, 1989) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Section 469.177, Subdivision 1, the Original Tax Capacity (OTC) for the City of Mounds View tax increment financing redevelopment district #3 is based on the value placed on the property by the County Assessor in 1987. This tax capacity is $9,369. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total tax capacity of the tax increment redevelopment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total tax capacity in the tax increment redevelopment district above the adjusted original tax capacity, a tax increment will be payable. In any year in which the total tax capacity in the tax increment financing redevelopment district declines below the original tax capacity, no tax capacity will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the Original Tax Capacity was certified, the amount the OTC has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to stipulations, adjustments, negotiated or court-ordered abatements. K. Estimated Captured Tax Capacity Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated present value of Captured Assessed Value (CAV) of the tax increment financing redevelopment district, with all phases completed, will annually approximate $5,068,376. This amount will be captured in phases (see Appendix “E”) for up to twenty-five years or until the debt is retired. City of Mounds View TIF Distric t No. 3 Modification 8 | P a g e (AS MODIFIED MARCH 26, 1989) Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated value of Captured Tax Capacity (CTC) for Phase I of the tax increment financing redevelopment district will annually approximate $295,000 while Phase II is estimated at $236,000. This amount will be captured in phases (see Appendix "E") for up to twenty-five years or until the debt is retired for Phase I and all Phase II costs have been amortized. L. Duration of the District Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, the duration of the tax increment district within the Development District must be indicated within the finance plan. The duration of the tax increment district will be 25 years from the date of receipt of the first tax increment, including any modifications to the finance plan for subsequent phases or other changes. (AS MODIFIED OCTOBER 8, 2012) Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicate d within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The date of receipt by the City of the first tax in crement was 1989. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 201 4, or when the TIF Plan is satisfied. The City reserves the right to dece rtify the District prior to the legally required date. M. Estimated Impact on Other Taxing Jurisdictions The impact of the use of tax dollars represented as tax increments for project costs is estimated below for each taxing jurisdiction. This estimate is based on the existing development proposals and does not include the possible tax increments derived from any other future development, mill changes, or inflation factors. Total Assessed Value Tax Increment Finance District 1/2/87 Total $ 86,240 Latest Assessed Value of Each Government Body: % or District to Total Ramsey County $3,315892,299 .0026 School District $605,174,784 .0142 City of Mounds View $59,887,551 .1440 Considering all the districts, it can be seen from the above that the school and county City of Mounds View TIF Distric t No. 3 Modification 9 | P a g e districts will have over 99% of each respective district available for normal growth of tax base or valuation. Applying the percentage of the total mill rate estimate in 1988 levied by each taxing jurisdiction to the project3ed mill rate and the estimated tax increment received reveals the annual loss of tax dollars by each taxing jurisdiction as listed in the table below ASSUMING DEVELOPMENT WOULD OCCUR WITHOUT PUBLIC ASSISTANCE. The finance plan indicates an anticipated tax increment at build out as follows: Captured Assessed Valuation Tax Increment Received Tax Increment Finance District #3 $5,068,376 $593,000 Based on an estimated mill rate, the estimated taxes received would be as follows for the taxing bodies: Mills Percent Tax Increment City 16.742 14.3 84,799 County 33.730 28.8 170,784 School District 59.076 50.5 299,465 Other 7.378 6.4 37,952 Total 116.926 100.00 593,000 The following table represents the additional mills that would have to be levied to compensate for the loss of tax dollars in estimated tax increments for each taxing jurisdiction. The tax increments derived from the development alluded to in the tax increment district would not be available to any of the taxing jurisdictions were it not for public intervention by the City. Although the increases in assessed value due to development will not be available for the application of the mill levy for the duration of the tax increment financing district, this new assessed value could eventually permit a mill levy decrease. If it could be assumed that the captured assessed value was available for each taxing jurisdiction, the non-receipt of tax dollars represented as tax increments may be determined. This determination is facilitated by estimating how much the mill levy for property outside of the tax increment financing district would have to be increased to raise the same amount of tax dollars in each taxing jurisdiction that would be available if the projects occurred WITHOUT THE ASSISTANCE OF THE CITY. Adjusted* Assessed Value Required Mills Without F.D. Contribution School District $604,464,784 .495 299,465 County $3,315,182,299 .052 170,784 City $59,177,551 1.432 84,799 *Tax Increment District assessed valuation subtracted. City of Mounds View TIF Distric t No. 3 Modification 10 | P a g e (AS MODIFIED MARCH 13, 1989) The impact of the use of tax dollars represented as tax increments for project costs is estimated below for each taxing jurisdiction. This estimate is based on the existing development proposals and does not include the possible tax increments derived from any other future development, rate changes, inflation factors, or Tax Increment District Nos. 1 and 2. Tests: The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No.3. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdiction is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District No. 3 would be as follows if Test No. 1 (the "but for" test) was not met. Total Tax Capacity Value Tax Increment Finance District No. 3 1/2/87 Total $9,369 Latest Tax Capacity Value of Each Government Body: % of District to Total City of Mounds View 7,306,281 .1282 County of Ramsey 404,538,860 .0023 School District 73,831,323 .0127 Considering the above taxing jurisdictions, it can be seen that the City, School and County Districts will have over 99% of each respective district available for normal growth of tax base or valuation from this tax increment district. Applying the percent age of the total tax capacity rate in 1989 levied by the above taxing jurisdictions to the projected tax capacity rate and the estimated tax increment received reveals the annual use of tax dollars for project costs as it affects each taxing jurisdiction. Anticipating a tax increment at build out as described in Appendix E, Section II, "Tax Increment Estimate," and utilizing the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: Captured Tax Capacity Tax Increment Phase I Tax Increment Finance District $295,031 $258,400 City of Mounds View TIF Distric t No. 3 Modification 11 | P a g e Based on the current tax capacity rate, the estimated taxes received would be as follows for the taxing bodies: Entity Tax Capacity Rate Percent Phase I Tax Increment City 10.621 11.58 29,922 County 28.380 30.97 80,026 School District 46.1681 50.37 130,156 Other 6.477 7.08 18,296 TOTAL 91.6462 100.00% $258,400 1. Confirmed 4.051 tax capacity rate referendum. A tax capacity rate of 87.595 may be used to estimate tax increment. 2. A frozen original tax capacity rate is not applicable to pre-May 1, 1988 districts since the district was approved in February of 1988 and certified prior to May 1, 1988. The following tables represent the additional tax capacity rates that would have to be levied to compensate for the loss of dollars in estimated tax increments for each jurisdiction. The tax increments derived from the development alluded to in the tax increment district would not be available to any of the jurisdictions were it not for public intervention by the City. Although the increases in tax capacity value due to development will not be "available for the application of the tax capacity rate for the duration of the tax increment financing district, this new tax capacity value could eventually permit a tax capacity rate decrease. If it could be assumed that the captured tax capacity value was available for each jurisdiction, the nonreceipt of dollars represented as tax increments may be determined. This determination is facilitated by estimating how much the tax capacity rate for property outside of the tax increment financing district would have to be increased to raise the same amount of dollars in each jurisdiction that would be available if the projects occurred WITHOUT THE ASSISTANCE OF THE CITY. Adjusted Tax1 Capacity Value Required Tax Capacity Rate Without F.D. Contributions City $7,219,661 .4145 $29,992 County $404,452,240 .0198 80,026 School District $73,744,703 .1765 130,156 1. Tax Increment District Tax Capacity Valuation Subtracted. N. Modifications of the Tax Increment Financing District In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination or capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the City, increase in total estimated City of Mounds View TIF Distric t No. 3 Modification 12 | P a g e tax increment expenditures or designation of additional property to be acquired by the authority shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity by the county auditor. The tax increment financing redevelopment district may therefore be expanded until 1993. O. Limitation on Administrative Expenses In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.174, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Tax Increment Financing Districts Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, “no tax increment shall be paid to an authority… three years from the date of certification… by the County Auditor… unless within the three-year period (1) bonds have been issued pursuant to Section 469.178 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 through 469.165, prior to August 1, 1979; or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused to be constructed public improvements within the district…” The City must therefore issue bonds, or acquire property, or construct or cause public improvements to be constructed by 1991 or the Office of the County Auditor may dissolve the tax increment financing district. Q. Limitation on Qualification of Property in Tax Increment District Not Subject to Improvement Pursuant to Minnesota Statutes Section 469.176, Subdivision 6, “if, after four years from the date of certification of the original assessed value of the tax increme nt financing district…, no demolition, rehabilitation or renovation of parcel or other site preparation including improvement of a street adjacent to a property but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original assessed value of that parcel shall be excluded from the original assessed value of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation City of Mounds View TIF Distric t No. 3 Modification 13 | P a g e or other site preparation on that parcel including improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor in the annual disclosure report that the activity has commenced. The county auditor shall certify the assessed value thereof as most recently certified by the commissioner of revenue and add it to the original assessed value of the tax increment financing district. R. Limitation on the Use of Tax Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant Minnesota Statutes, Chapter 469. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipal owned building used primarily and regularly for conducting the business of the municipality; this provisio n shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for co nducting the business of the municipality. S. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes Section 469.177, Subdivision 4, the City has reviewed and searched the properties to be included in the tax increment financing redevelopment district and found no properties for which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the city. If the building permit had been issued within the 18 month period preceding approval of the tax increment financing plan by the city, the county auditor shall increase the original assessed value of the district by the assessed valuation of the improvements for which the building permit was issued, EXCLUDING THE ASSESSED VALUATION OF IMPROVEMENTS FOR WHICH A BUILDING PERMIT WAS ISSUED DURING THE THREE MONTH PERIOD IMMEDIATELY PRECEDING SAID APPROVAL OF THE TAX INCREMENT FINANCING PLAN BY THE CITY COUNCIL. T. Excess Tax Increments Pursuant to Minnesota Statutes, Section 469.176, Subdivision 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.61, Subdivision 3, the City shall use the excess amount to: 1. Prepay the outstanding bonds; 2. Discharge the pledge of tax increment therefore; 3. Pay into an escrow account dedicated to the payment of such bond; City of Mounds View TIF Distric t No. 3 Modification 14 | P a g e 4. Repay any loans including interest on these loans; or 5. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions to proportion to their mill rate. U. Requirement for Agreements with the Developer Pursuant to Minnesota Statutes Section 469.174, Subdivision 10(3), no parcel shall be included within a redevelopment district pursuant to this paragraph unless the authority has concluded an agreement for the development of at least 50% of the acreage having the unusual soil or terrain deficiencies which agreement provides recourse for the City should the development not be completed. V. Assessment Agreements Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the City may, upon entering into a development agreement pursuant to Minnesota Statutes Section 469.176, Subdivision 5, enter into an agreement in recordable form with the developer of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements for the duration of the tax increment redevelopment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and so long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tax Increment Financing Redevelopment District and Maintenance of the Tax Increment Account Administration of the tax increment financing redevelopment district will be handled by the Office of the Clerk-Administrator. The tax increment received as a result of increases in the assessed value of the tax increment financing redevelopment district will be maintained in a special account separate from all other municipal accounts and expended only upon sanctioned municipal activities identified in the finance plan. (AS MODIFIED NOVEMBER 13, 2000) Administration of the tax increment financing redevelopment district will be handled by the City of Mounds View’s E.D.A. Executive Director. Consistent with Minnesota Statutes, Section 469.177, Subdivision 5, requiring that “tax increment received with respect to any district shall be segregated by the authority in a special account or accounts on its official books and records or as otherwise established by resolution of the authority to be held by a trustee or trustees for the benefit of holders City of Mounds View TIF Distric t No. 3 Modification 15 | P a g e of the bond,” the EDA will account for all increment from the Tax Increment Districts in one or more accounts and subaccounts, including the ability where deemed appropriate to establish one or more accounts for the proper accounting and implementation of the Tax increment Financing Districts and the portion of the Project to be financing directly or indirectly with tax increment. The right to make appropriate transfers in and out of such accounts is hereby reserved, along with the right to make both external and internal interest bearing borrowings, whether long term or short term, including transfers from other city or EDA funds to cash flow tax increment obligations and other legitimate expenditures. X. Annual Disclosure Requirements Pursuant to Minnesota Statutes, Section 469.175, Subdivision 5, an authority must file an annual disclosure report for all tax increment financing districts. The report shall be filed with the school board, county board and the Minnesota Department of Trade and Economic Development. The report shall include the following information: 1. The original assessed value of the district; 2. The captured assessed value of the district, including the amount of any captured assessed value shared with other taxing districts; 3. The outstanding principal amount or bonds issued or other loans insured to finance project costs in the district; 4. For the reporting period and for the duration of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: a. Acquisition of land and buildings through condemnation or purchase; b. Site improvements or preparation costs; c. Installation of public utilities or other public improvements; d. Administrative costs, including the allocated cost of the authority. 5. For properties sold to developers, the total cost of the property to the authority and the price paid by the developer; Y. Assumptions City of Mounds View TIF Distric t No. 3 Modification 16 | P a g e It was necessary to make certain assumptions regarding income, costs and timing of the tax increment redevelopment district. These assumptions are based on discussions with city officials and developers. Z. Municipal Findings Pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth the reasons and supporting information for the determination (see Appendix B): 1. The proposed development or redevelopment, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonable foreseeable future and, therefore, the use of tax increment financing is deemed necessary since the developers could not construct the improvements without the use of tax increments to assist with the financing of soil correction; and 2. The tax increment financing plan will afford maximum opportunity, consistent with the sound _________ of the City as a whole, for the development by private enterprise as it will enable the City to provide a suitable site, via soil correction for development; thereby encouraging development in the area. 3. The tax increment financing plan conforms to the general plan for the development of the city as a whole. 4. The tax increment district to be established is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10 in which the conditions described in Section E of this plan exist. ZZ. Fiscal Disparities Treatment The City will elect the method of tax increment computation pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, clause (a), consequently, the district shall be created with the election to spread the fiscal disparities contribution outside the tax increment district. City of Mounds View TIF Distric t No. 3 Modification 17 | P a g e APPENDIX A LIST OF PROPERTY IN PROPOSED TAX INCREMENT DISTRICT NO. 3 PRORERTY IDENTIFICATION NO. 05-30-23-21-0001-5 05-30-23-22-0001-2 06-30-23-11-00027 (AS MODIFIED AUGUST 22, 2005) The following parcels are being decertified from TIF District No. 3 to be included in TIF District No. 5: 05-30-23-21-0005 05-30-23-21-0006 (AS MODIFIED OCTOBER 8, 2012) The following parcels are located within TIF District No. 3: 05-30-23-21-0002 05-30-23-21-0007 05-30-23-21-0011 05-30-23-21-0012 05-30-23-22-0009 City of Mounds View TIF Distric t No. 3 Modification 18 | P a g e City of Mounds View TIF Distric t No. 3 Modification 19 | P a g e APPENDIX B DISTRICT STATUS See original TIF Plan dated February 22, 1988 and the modification to the TIF Plan dated March 13, 1989. City of Mounds View TIF Distric t No. 3 Modification 20 | P a g e APPENDIX C ELIGIBILITY It is proposed that the tax increment district is a redevelopment district under the blighted land provisions of the law. The basis of this finding originates with the Braun Report, Titled "Wetland Evaluation", Miller Industrial Park, September 1983. The Report indicates that the vast majority of the evaluated area has soil, water or other conditions requiring correcting before buildings can be built,. It would appear that the 80 percent rule is met as well as the cost to cure. The basis for the finding of blight is that the cost of the land plus the cost to correct the soil is higher cost per unit of land that a similar unit of land within the City without any problems. The land has remained undeveloped after the studies for nearly five years. Conside ring that other industrial development has proceeded within the City, the cost factor would be the logical reasoning for non -development of the proposed industrial/commercial park. Therefore, based on the Braun Report and the extra costs required to correct the soil, the tax increment district will be defined a redevelopment district in this plan. City of Mounds View TIF Distric t No. 3 Modification 21 | P a g e APPENDIX D PROJECT COSTS City of Mounds View TIF Distric t No. 3 Modification 22 | P a g e (AS MODIFIED MARCH 13, 1989) City of Mounds View TIF Distric t No. 3 Modification 23 | P a g e (AS MODIFIED NOVEMBER 13, 2000) City of Mounds View TIF Distric t No. 3 Modification 24 | P a g e APPENDIX E ESTIMATE OF TAX INCREMENTS City of Mounds View TIF Distric t No. 3 Modification 25 | P a g e (AS MODIFIED MARCH 13, 1989) City of Mounds View TIF Distric t No. 3 Modification 26 | P a g e APPENDIX F DATA SUMMARY (AS MODIFIED MARCH 13, 1989) City of Mounds View TIF Distric t No. 3 Modification 27 | P a g e APPENDIX G DEFINITIONS See original TIF Plan dated February 22, 1988 and the modification to the TIF Plan dated March 13, 1989.