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APPENDIX A PROJECT DESCRIPTION TIF District No.3-5 currently consists of 24 parcels of land and adjacent and internal rights-of-way and is approximately 65 acres in size. TIF District No.3-5 is being created to facilitate the redevelopment of the Apache Plaza Shopping Center and surrounding area(commonly referred to as the Northwest Quadrant), in accordance with the Redevelopment Plan. Currently the Northwest Quadrant is underutilized, with obsolete structures and physical arrangements, substantial vacant areas and high building vacancies, inconsistent legal restrictions on redevelopment and outdated and inadequate public infrastructure and circulation. Redevelopment has been impeded by fragmentation of ownership and the difficulty of redevelopment without a consistent overall plan ensuring compatible adjacent uses. Due to these issues,the redevelopment of the Northwest Quadrant has been a priority redevelopment goal for the City for the past ten(10)years. The largest property within the Northwest Quadrant and the main impetus for the redevelopment is the Apache Plaza Shopping Center that is approximately 95%vacant. This 432,000+sq/ft mall was constructed back in the mid 1950's and was the second covered mall developed in the United States. After opening it was a thriving,regional mall that served the majority of the surrounding urbanized areas. At the time Apache Plaza was constructed,Silver Lake Road and CountyRoad D were major thoroughfares through the community,which are adjacent to the Mall. When Interstate 35W and 694 were constructed they became the major thoroughfares,thus deviating traffic away from Apache Plaza,which was the beginning of its decline. Also contributing to its decline were changes in retail trends and competition from modern shopping centers like Rosedale (located 3-5 miles away). This further caused Apache Plaza to become economically and functionally obsolete to the community and the region. As Apache continued its decline in valuation,the development was unable to attract new anchor tenants. As vacancies continually increased, the development could no longer support the outstanding debt on the property and US Bank had to foreclose upon the property in 1996(they currently retain ownership of it). Today,Apache Plaza is over 95%vacant and has declined in value by 54 percent since 1991. Due to the decline of Apache Plaza, several of the surrounding businesses were starting to feel the effects and decline as well. In addition to being economically and functionally obsolete,the existing Apache Plaza site is the second largest contributor ofpollutants,to Silver Lake(according to the Ramsay County&Rice Creek Watershed District Diagnostic Feasibility Study for Silver Lake). The Apache Plaza Site requires extensive storm water treatment as part of any redevelopment. Storm water treatment requirements have been a hindrance to redevelopment of this site in the past because of the large land commitment necessary to meet today's storm water treatment standards and the fiscal implications thereof. To date,there has been no funding available to retroactively address the water quality issues generated from the Apache Plaza site. The only opportunity to address these issues financially is through this comprehensive redevelopment opportunity and the establishment of a Redevelopment TIF District.. In 2000,the City was approached by a Developer to redevelop Apache Plaza. The Developer proposed to rehabilitate the existing Mall and convert it into office/warehouse space. The City Council rejected the proposal because they didn't view that turning the Mall into an industrial park was the long-term solution for the communityand that the e proposal did not address the existing water quality issues. In light of this decision the City Council undertook a community based planning effort in 2000 to address redevelopment of the Northwest Quadrant. In 2001 a community consensus was reached that the goal of the redevelopment should APPENDIX A-1