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HomeMy WebLinkAboutCC RES 99-041 A RESOLUTION APPROVING SPRINGSTED TO PERFORM A TAX IMPACT STUDY Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIII IIIIIIII 104903 Box: 31 Folder: RES 1999 Document: CC RES 99-041 A RESOLUTION APPROVING SPRINGSTED TO PERFORM A TAX IMPACT STUDY • CITY OF ST. ANTHONY RESOLUTION 99-041 A RESOLUTION APPROVING SPRINGSTED TO PERFORM A TAX IMPACT STUDY WHEREAS, the St. Anthony City Council desires a tax impact study to be done which will review and analyze the tax impact of the School District and/or the City purchasing property owned by the Salvation Army within the City of St. Anthony; and WHEREAS, the financial advisory firm of Springsted has submitted a proposed work plan for said study. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of St. Anthony • hereby approves Springsted to develop a tax impact study relating to the possible purchase, by the City and Independent School District #282, of the Salvation Army Camp site on behalf of the City of St. Anthony. Adopted this ,Z S day of Mn J , 1999. Mayor ATTEST: City Clerk Reviewed by Administration: City danager • 85 E.SEVENrH PLACE,RM 100 SAINT PAUL,MN 55101.2887 6SI-223-3000 FAX:651.223.3002 • SPRYNCSTED Public l imme Advisors May 14, 1999 Mr. Warren J. Rolek, Superintendent St. Anthony-New Brighten Schools 3303-W Avenue N.E. Minneapolis, MN 55418 Mr. Michael J. Morrison, City Manager Saint Anthony Village 3301 Silver Lake Road St. Anthony, MN 55418 Re: Tax Impact Study Dear Mr. Rolek and Mr. Momson: • Based on our recent discussion, we are providing you with a proposed work plan for a tax Impact study for the St. Anthony-New Brighten Schools and Saint Anthony Village. Using this work plan as an outline, we propose a cooperative effort with you in developing a tax impact study that will benefit the School District and the City. The objective of this study is to review and analyze the tax impact of the School District and/or the City purchasing property currently owned by the Salvation Army. It is anticipated the project will be provided in two phases. In the first phase of the impact study we will review the capacity of each entity to finance the project and the impact of such financing. The second phase of the study will identify alternatives for the usage of the property and outline the impacts of such uses. The scope of this work will be limited to the first phase of the proposed work plan subject to further direction from the School District and City to continue further analysis as outlined in Phase Two. We look forward to assisting you in this project. Thank you for your consideration. rely, a , L Robe istle John M. Maas, Senior Vice President Senior Vice President Client Representative • Copy: Mr. David L Wettergren, Consultant, Management Services Ms. Susan Mershon, Project Manager, Management Services &UNT PAUL.MN • HNNLOQU3,MN • BROO aMAvA • ovF,EtAND PM,KS - WA9WCFrON,DC • DES MOM,lA ST. ANTHONY-NEW BRIGHTEN SCHOOLS • SAINT ANTHONY VILLAGE Tax Impact Study Work Plan Objective The objective of the first phase of this study is to develop an analysis that outlines the impacts on the School District and City to acquire property currently for sale by the Salvation Ancor. A second phase of the study Is to identify and outline options for use and development of the property by the School District and City. Tasks Phase One • Obtain and review relevant infonnation to be included in study. • Review current debt levels and debt capacities for each jurisdiction. • Identify and outline financing options available to each jurisdiction for purchase of the Salvation Army property; options would include three to four levels of acquisition costs. • • Analyze potential debt and levy requirements for financing for each option. • Illustrate the tax Impacts that the identified capital investment and financing has on each of the participating jurisdictions and their citizens. Phase Two- * Identify options for potential use of all or a portion acquired property. • Recreation Facility • School Facility • Development • Analyze impacts associated with use altematives. Outcomes • Prepare a draft tax impact analysis, Phase One, for the School District's and City's review and comment. • Incorporate the School District and Citys comments into the plan. • Present Phase One final report. Continue with Phase Two as directed. • %propmal.doo St. Anthony-New Brighten School District/Saint Anthony Village Tax Impact Study Page 2 • Compensation We propose to bill on an hourly basis; however, our fee for services to complete Phase 1 of the study, exclusive of any out-of pocket expenses such as travel and copying, will not exceed $3,150, without prior written authorization of the School District and City. The anticipated date for completion of the first phase of the work is May 31st. Phase 2 of the study will be billed on an hourly basis with the estimated cost to be discussed Our standard hourly fee table and estimated time schedule are shown below. Estimated Time and Cost City Capital Financing Analysis Time Title Rate (Hrs.) Cost Review Principal $150 1 $ 150 Client Representative $125 4 $500 Project Manager $ 115 20 $2,300 Support Staff $ 40 5 $ 200 Total $3,150 • •