1-11-11 HRA Agenda PacketAGENDA
GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING
January 11, 2011 - 6:30 PM
Golden Valley City Hall
1. Roll Call
2. Election of Officers
3. Approval of Minutes -October 12, 2010 HRA Meeting and
November 9, 2010 Special HRA Meeting
4. Reimbursement of City Expenditures
City of Golden Valley
TOTAL $2,876,988.30
Bill Summary:
General Fund-2010 1,013.10
Golden Hills -
Capital Project Fund -Central Area 562.70
Tax Increment Fund 2,875,000.00
North Wirth -
Capital Project Fund -District #3 412.50
TOTAL 2.876,988.30
5. Receipt of December Financial Reports
6. Set 2011 HRA Regular Meetings
7. Adoption of 2011 General Fund Budget: Resolution 11-01
8. Designation of Depositories: Resolution 11-02
9. Review of Tax Increment Financing Policy
10. I-394 Corridor Redevelopment Area Plan
11. Other Business
12. Adjournment
.. _ .
This document is available in alternate formats upon a 72-hour request. please call
7b3-593-8006 (TTV: 763-593-3968) to make a request. Examples of alternate formats
nr,,; includ : lar,~~~ print, electronic, Braille, audiocassette, etc.
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`Golden
Valley
Memorandum
Housing & Redevelopment
Authority
763-593-8002 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley HRA Meeting
January 11, 2011
Agenda Item
2. Election of Officers
Prepared By
Thomas D. Burt, HRA Director
Summary
The HRA by-laws provide for the election of two officers to the HRA -Chairperson and Vice
Chairperson. The by-laws state these positions are to be elected for aone-year term.
The officers in 2010 were: Chairperson, Paula Pentel; Vice Chairperson, Mike Freiberg
Recommended Action
Motion to approve a Chairperson and Vice Chairperson for 2011.
HOUSING AND REDEVELOPMENT AUTHORITY
October 12, 2010
Pursuant to due call and notice thereof, a regular meeting of the Housing and
Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was
held at 7800 Golden Valley Road in said City on October 12, 2010 at 6:30 pm, in the City
Council Chambers.
The following members were present: Chair Paula Pentel and Commissioners Mike
Freiberg, Linda Loomis, DeDe Scanlon and Robert Shaffer. Also present were HRA
Director Thomas Burt, HRA Attorney Allen Barnard, Assistant HRA Director Jeanne Andre,
Finance Director Sue Virnig and Administrative Assistant Christine Columbus.
Approval of Agenda
MOVED by Shaffer, seconded by Loomis and motion carried unanimously to approve the
agenda of October 12, 2010.
Approval of Minutes -July 13, 2010
MOVED by Loomis, seconded by Freiberg and motion carried unanimously to approve the
Housing and Redevelopment Authority minutes of July 13, 2010.
Reimbursement of City Expenditures
MOVED by Loomis, seconded: by Freiberg and motion carried unanimously to authorize the
reimbursing the City of Golden Va ley $1,017.50 for expenditures incurred.
Receipt of September 2010 Financial Reports
MOVED by Shaffer, seconded by Loomis and motion carried unanimously to receive and
file the September 2010 HRA Financial Reports.
Agreement for Legal Service with Best & Flanagan
MOVED by Freiberg, seconded by Loomis and motion carried unanimously to authorize the
HRA Director tv enter into a new five-year agreement with Best & Flanagan for the
provision of legal service to the HRA. Commissioner Loomis noted that the agreement can
be cancelled in less than five years with notice.
I-394 Corridor Redevelopment Area Plan
MOVED by Freiberg, seconded by Scanlon and motion carried unanimously to continue
the consideration of I-394 Corridor Redevelopment Area Plan to the January 11, 2010
meeting.
Housing and Redevelopment Authority
October 12, 2010
Page 2 of 2
GVEC Properties LLC Default
Director Burt reported GVEC, LLC has remained in default of the TIF agreement through
non-payment of taxes. Burt recommends the HRA continue to suspend TIF payments to
the developer and wait and see if the developer can secure financing to pay the delinquent
in taxes.
MOVED by Loomis, seconded by Shaffer and motion carried unanimously to authorize
staff to continue to work with the GVEC, LLC while the developer tries to secure financing
and pay the delinquent taxes.
The meeting was adjourned at 6:37pm.
Paula Pentel, Chair
ATTEST:
Christine Columbus, Administrative Assistant
Jeanne Andre, Assistant Director
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY
November 9, 2010
Pursuant to due call and notice thereof, a special meeting of the Housing and
Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was
held at 7800 Golden Valley Road in said City on November 9, 2010 at 8:26 pm, in the
Council Conference Room.
The following members were present: Chair Paula Pentel and Commissioners Mike
Freiberg, Linda Loomis, DeDe Scanlon and Robert Shaffer. Also present were HRA
Director Thomas Burt, Assistant HRA Director Jeanne Andre, Finance Director Sue Virnig,
Public Works Director Jeannine Clancy, Assistant City Manager Chantell Krauss and City
Planner Joe Hogeboom.
Review of Three•Nine•Four Development Proposals
Director Burt presented two new plans for the development of the Minnesota Department
of Transportation parcel at I-394 and Highway 100 that incorporate the adjacent residential
apartment. parcel. He noted that staff would like feedback on whether the Commissioners
would like to work with the developer on either of these plans or instead work with MnDOT
to temporarily use the parcel for construction staging for the proposed pavement
management and sanitary sewer projects.
The Commissioners discussed what they liked and disliked about the project and
suggested that they preferred Option 27, with a pond. They suggested modifications they
would like to see, including reducing the height of the apartments on the north side
(adjacent to the single family residences), providing no fire access at the east end,
improved access around the buildings, and detailed evaluation of the parking needs. They
would consider increasing the apartment unit density of the southerly building and would
like the Engineering Department to evaluate the best orientation for the drive off of Circle
Down.
The meeting was adjourned at 8:47 pm
Paula Pentel, Chair
ATTEST:
Jeanne Andre, Assistant Director
~~'' Memorandum
O ~Y1 ~ (~ Finance
11 v 763-593-8013 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley HRA Meeting
January 11, 2011
Agenda Item
4. Reimbursement of City Expenditures
Prepared By
Sue Virnig, Finance Director
Summary
As of December 31, 2010 the following expenditures were paid by the City on various check
registers and need to be reimbursed by the HRA:
City Expenditures:
1000 Best & Flanagan (Sept-Legal)
1000 Best & Flanagan (October Legal)
1000 Best & Flanagan (November Legal)
1000 City of Golden Valley (Golden Hills Debt Payment)
HRA Expenditures:
9000 General Fund
9160 Golden Hills Tax Increment Fund
9250 North Wirth #3*
9280 Golden Hills Capital Projects*
Asterisk items are reimbursed by deposits held for developers.
Recommended Action
Amount Ck #
375.60 103949
562.50 104455
1,050.20 104470
2,875,000.00
$2,876,988.30
1,013.10
2,875,000.00
412.50
562.70
$2,876,988.30
Motion to approve reimbursing the City of Golden Valley $2,876,988.30 for expenditures
incurred.
'Golden galley
Memorandum
Finance
763-593-8010 / 763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Meeting
January 11, 2011
Agenda Item
5. Receipt of December 2010 Financial Reports
Prepared By
Sue Virnig, Finance Director
Summary
Attached are the December 2010 Financial Reports for Council review. Staff will address
questions from the Council before or at the meeting.
Attachments
HRA General Fund December 2010 Budget Report (1 page)
HRA Tax Increment District Projections for Golden Hills Tax Increment Funds (1 page)
HRA 2010 Capital Project Funds Report (1 page)
Recommended Action
Receive and file the December 2010 HRA Financial Reports
HRA of Golden Valley
General Fund
December 2010 Budget Report
Percentage Of Year Completed 75%
Over % Of
2010 Oct-Dec YTD (Under) Budget
Revenue Budget Actual Actual Budget Received
Transfer from TIF Funds:
Golden Hills 159,000 0.00 159,000.00 0.00 100.00%
Interest Earnings
Fund Balance
0 73.20 73.20 73.20
0 0.00 0.00 0.00 #DIV/0!
Totals $159,000 73.20 159,073.20 73.20 100.05%
Over % Of
2010 Oct-Dec YTD (Under) Budget
Expenditures Budget Actual Actual Budget Expended
Legal Services (1) $6,000 1,013.10 4,001.20 (1,998.80) 66.69%
Audit
12,000 0.00 12,000.00 0.00 100.00%
City Overhead (2) 140,000 0.00 140,000.00 0.00 100.00%
Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00%
Totals $159,000 1,013.10 156,001.20_ (2,998.80) 98.11%
Notes:
(1) Includes November to date billings from Best & Flanagan.
(2) Transfers were made in July 2010.
City of Golden Valley -HRA -Tax Increment District Protections
Golden Hills Tax Increment Fund:
(Includes Tax Increment Fund and Debt Service)
Projected Cash Bal. @1/1
Plus:
Estimated Tax Increment
Interest Earnings (.05% of Beg. Bal.)
Less:
Transfer to HRA General Fund
Debt Service:
1999 C Tax Incr. Bonds (5.09%)
2004 A Tax Incr. Refunding Bonds (2.27%)
2005 B Taxable Tax Incr. Refunding Bonds (4.69%)
2005 A Tax Increment Refunding Bonds (3.50%)
2006 A Taxable Tax Incr. Refunding Bonds (5.12%)
2011 2012 2013 2014 2015
$7,021,958 $7,906,230 $9,910,621 $10,873,466 $9,867,251
3,908,578 3,908,578 3,908,578 3,908,578
28,088 31,625 39,642 43,494
(159,000) (159,000) (159,000) (159,000)
(866,970)
(231,187)
(412,766) (407,991) (402,710) (1,759,910) (1,686,475)
(123,971) (126,571) (128,915) (546,877) (533,282)
(1,258,500) (1,242,250) (2,294,750) (2,492,500) (2,950,500)
Projected Cash Bal. @ 12131 $7,906,230 $9,910,621 $10,873,466 $9,867,251 $4,696,994
Bond Principal 8~ Interest Outstanding @ 12131
$14,572,731 $12,795,919 $9,969,544 $5,170,257 $0
HRA Of Golden Valley Capital Pro'ect Funds
2010 Financial Report 9280 9250
Golden North
Hills Wirth #3
Cash Balance @ 10/01/10 $285,110.22 $19,527.62
Add:
Receipts:
Interest 1,011.43 134.89
Deposit from Developer
Increment on Deposit 12,532.12
Less:
Expenditures:
City of Golden Valley (1)
Transfer to TIF
Cash Balance @ 12/31 /10 $286,121.65 $32,194.63
(1) Breakdown on City Expenditures Memo
Cicv
of
o en
galley
Memorandum
Housing & Redevelopment
Authority
763-593-8002 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley HRA Meeting
January 11, 2011
Agenda Item
6. Set 2011 HRA Regular Meetings
Prepared By
Thomas D. Burt, HRA Director
Summary
Under its by-laws, the HRA has regular meetings quarterly on the second Tuesday in
January, April, July and October. The 2011 HRA regular quarterly meeting dates would
therefore be January 11, April 12, July 12 and October 11.
Recommended Action
Set regular meeting dates for regular meetings for HRA on January 11, April 12, July 12 and
October 11 at 6:30 pm.
City
~~
o ~n
galley
Memorandum
Finance
763-593-8013 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley HRA Meeting
January 11, 2011
Agenda Item
7. 2011 Housing and Redevelopment Authority (HRA) General Fund Budget
Prepared By
Sue Virnig, Finance Director
Summary
Attached is the 2011 Housing and Redevelopment Authority General Fund Budget. In 2009,
we had Valley Square paying part of the overhead.
Attachments
Resolution 11-01 Adopting 2011 General Fund Budget (2 pages)
Recommended Action
Motion to adopt Resolution 11-01 Adopting 2011 HRA General Fund Budget.
Resolution 11-01
January 11, 2011
Commissioner introduced the following resolution and moved its
adoption:
RESOLUTION OF THE HOUSING AND REDEVELOPMENT
AUTHORITY (HRA)
ADOPTING THE 2011 GENERAL FUND BUDGET
BE IT RESOLVED by the HRA that the appropriations for the General
Fund Program for the calendar year 2011 as follows:
GENERAL FUND
Proposed
Expenditures Budget
Legal Services $6,000
Audit Services 12,000
Permanent Transfer 140,000
Miscellaneous 1,000
159 000
BE IT FURTHER RESOLVED by the HRA that the sources of
financing the sums appropriated shall be:
GENERAL FUND
Revenue
Golden Hills -Tax Increment fund
159,000
159 000
Paula Pentel, Chair
ATTEST:
Thomas D. Burt, Executive Director
The motion for the foregoing resolution was seconded Member ,and upon a
roll call vote being taken thereon, the following voted in favor thereof: ;
the following voted against the same: ;whereupon said resolution was
adopted, signed by the Ghair and her signature attested by the Director
`Golden
Valley
Memorandum
Finance
763-593-8013 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley HRA Meeting
January 11, 2011
Agenda Item
8. Designation of Depositories: Resolution 11-02
Prepared By
Sue Virnig, Finance Director
Summary
State Law requires cities to have depositories for city funds approved annually. The attached
resolution states the depositories, accounts, and signature requirements for each account.
Attachments
Resolution 11-02 Designating Depositories for HRA Funds (1 pages)
Recommended Action
Motion to adopt Resolution 11-02 Designating Depositories for HRA Funds.
Resolution 11-02 January 11, 2010
Commissioner introduced the following and moved its
adoption:
RESOLUTION DESIGNATING DEPOSITORIES FOR HRA FUNDS
BE IT RESOLVED by the Housing and Redevelopment Authority of
Golden Valley that the following are named as depositories for HRA funds,
subject to the furnishing of collateral for funds on deposit as provided in the Laws
of the State of Minnesota:
BNC National Bank
Central Bank
Piper Jaffray Companies
RBC-Dain Rauscher
US Bank
Wells Fargo
4M Fund
BE IT FURTHER RESOLVED that the following signatories or alternates
are authorized to be signatories on checks drawn on funds deposited to the
general checking account: the HRA Chair or Vice Chair and the HRA Director or
Assistant Director; and that each check shall require two signatures.
BE IT FURTHER RESOLVED that the following shall be authorized to
make investments of HRA funds and shall be authorized to deposit the principal
of said investments in the above named depositories as necessary and beneficial
to the City: HRA Director, City Treasurer, City's Accounting Coordinator.
The HRA Director and City Clerk are authorized and directed to furnish
each of the depositories with certified copies of this resolution along with such
signature documentation as is required by the depository and the authorizations
set forth under 1 and 2 above.
Paula Pentel, Chair
ATTEST:
Thomas D. Burt, Director
Motion for the adoption of the foregoing resolution was seconded by
;and upon a vote taken thereon, the following voted in favor
thereof the following voted against the same:
whereupon said resolution was declared duly passed and adopted,
signed by the Chair and his signature attested by the Director.
~r
`~``'' Memorandum
(~ n ~] ~ Housing & Redevelopment
~,rll (,l, Authority
763-593-8014 / 763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Meeting
January 11, 2011
Agenda Item
9. Review of Tax Increment Financing Policy
Prepared By
Jeanne Andre, Assistant HRA Director
Summary
In 2003 the Housing and Redevelopment Authority (HRA) adopted a policy and procedure
related to Tax Increment Financing. At the time of its adoption, the HRA requested an annual
review of the policy to see if it should be continued or revised. Attached is the current version
of the policy, which was last changed in 2006. In keeping with the HRA request for annual
review the current policy is presented for consideration by the HRA. Staff has no
recommended changes to the policy in 2011.
There were no recommended changes to the policy in 2010. In 2009 the Council requested
changes to the application form, but not the policy. In 2008 staff recommended changes in
the fee structure to provide for an initial fee of $10,000 with an open-ended supplemental
application fee, paid in increments of $5000, which the Commissioners approved. Staff
recommends continuing this fee structure.
Attachments
Tax Increment Financing Policy as adopted by Resolution 06-03, April 11, 2006, with
application and fee changes (10 pages)
Recommended Action
Determine if changes to Tax Increment Financing Policy as adopted by Resolution 06-03,
should be considered by the HRA at its April 2011 Meeting and direct staff as to the nature of
the desired changes.
If no changes are recommended, a motion to affirm the existing Tax Increment Financing
Policy as set forth in Resolution 06-03 is in order.
GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY
GOLDEN VALLEY, MINNESOTA
TAX INCREMENT FINANCING POLICY
REVISED: April 11, 2006
1. POLICY PURPOSE
For the purposes of this document, the term "HRA" shall include the Golden Valley
Housing and Redevelopment Authority.
The purpose of this policy is to establish the position of the Golden Valley HRA relating
to the use of Tax Increment Financing (TIF) for private development above and beyond
the requirements and limitations set forth by State Law. This policy shall be used as a
guide in the processing and review of applications requesting tax increment assistance.
The fundamental purpose of tax increment financing in Golden Valley is to encourage
desirable development or redevelopment that would not otherwise occur but for the
assistance provided through TIF.
Regardless of authorized expenditures under the law, it is the intent of the HRA to
provide the minimum amount of TIF at the shortest term required for the project to
proceed. The HRA reserves the right to approve or reject projects on a case by case
basis, taking into consideration established policies, project criteria, and demand on city
services in relation to the potential benefits from the project. Meeting policy criteria does
not guarantee the award of TIF to the project. Approval or denial of one project is not
intended to set precedent for approval or denial of another project.
II. OBJECTIVES OF TAX INCREMENT FINANCING
As a matter of adopted policy, the HRA will consider using TIF to assist private
development projects to achieve one or more of the following objectives:
A. To retain local jobs and/or increase the number and diversity of jobs that offer
stable employment and/or livable wages and benefits.
B. To encourage additional unsubsidized private development in the area, either
directly or indirectly through "spin off' development.
C. To facilitate the development process and to achieve development on sites which
would not be developed without TIF assistance.
-1-
Revised 1-13-09
D. To remove blight and/or encourage redevelopment of commercial and industrial
areas in the city that result in high quality redevelopment and private
reinvestment.
E. To offset increased costs of redevelopment (i.e. contaminated site clean up) over
and above the costs normally incurred in development.
F. To create opportunities for affordable housing.
G. To contribute to the implementation of other public policies, as adopted by the
city from time to time, such as the promotion of quality urban or architectural
design, energy conservation, and decreasing capital and/or operating costs of
local government
H. Foster sustainable development and work to establish a balance between urban
and natural systems. Encourage the application of green building and
infrastructure techniques. Examples include low-impact development that
maintains the natural functions of the land, reduces storm water runoff and
fosters resource conservation and the use of renewable systems in new
construction.
III. POLICIES FOR THE USE OF TAX INCREMENT FINANCING
A. The priority for the use of TIF funds is:
1. Public improvements, legal, administrative, and engineering costs.
2. Site preparation, site improvement, land purchase, soil correction,
environmental remediation and demolition.
3. Capitalized interest, bonding costs.
B. TIF assistance will be provided to the developer upon receipt of the increment by
the City, otherwise referred to as the pay-as-you-go method. Requests for up
front financing will be considered on a case by case basis.
C. A maximum of ten percent (10%) of any tax increment received from the district
shall be retained by the City to reimburse administrative costs.
D. Any developer receiving TIF assistance shall provide an equity investment in the
project.
E. TIF will be used to purchase land and/or property only at fair market value.
F. TIF shall not be used for projects that would place extraordinary demands on city
services or for projects that would generate significant environmental impacts.
-2-
Revised 1-13-09
G. The developer must provide adequate financial guarantees to ensure completion
of the project, including, but not limited to: assessment agreements, letters of
credit, personal guaranties, escrow deposits, etc.
H The developer shall adequately demonstrate, to the City's sole satisfaction, an
ability to complete the proposed project based on past development experience,
general reputation, and credit history, among other factors, including the size and
scope of the proposed project.
I. For the purposes of underwriting the proposal, the developer shall provide any
requested market, financial, environmental, or other data requested by the City or
its consultants.
IV. SUBSIDY AGREEMENT ~ REPORTING REQUIREMENTS
All developers/businesses receiving tax increment financing assistance from the Golden
Valley HRA shall be subject to the provisions and requirements set forth by state statute
116J.993 and summarized below.
A. All developers/businesses receiving TIF assistance shall enter into a subsidy
agreement with the Golden Valley HRA that identifies: the reason for the subsidy,
the public purpose served by the subsidy, and the goals for the subsidy, as well
as other criteria set forth by statute 116J.993.
B. The developer/business shall file a report annually for two years after the date
the benefit is received or until all goals set forth in the application and
performance agreement have been meet, whichever is later. Reports shall be
completed using the format drafted by the State of Minnesota and shall be filed
with the Golden Valley HRA no later than March 1 of each year for the previous
calendar year. Businesses fulfilling job creation requirements must file a report to
that effect with the city within 30 days of meeting the requirements.
C. The developer/business owner shall maintain and operate its facility at the site
where TIF assistance is used until the end of the TIF District.
D. Developers /Businesses failing to comply with the above provisions will be
subject to fines, repayment requirements, and be deemed ineligible by the State
of Minnesota to receive any loans or grants from public entities for a period of
five years.
-3-
Revised 1-13-09
APPLICATION FOR TAX INCREMENT FINANCING
A. APPLICANT INFORMATION
Name of Corporation/Partnership
Address
Primary Contact
Address
Phone Fax Email
Attorney Name
Address
Phone Fax Email
Accountant Name
Address
Phone Fax Email
Contractor Name
Address
Phone Fax Email
FnnlnPPr Name
- ..
Address
Phone Fax Email
Architect Name
Address
Phone Fax Email
-1-
Revised 1-13-09
B. PROJECT INFORMATION
The project will be:
Industrial Greenfield:
Commercial Redevelopment
Industrial Redevelopment:
Other
The project will be:
Project Address
Legal Description
New Construction
New Construction
New Construction
Expansion
Rehabilitation
Rehabilitation
Owner Occupied Leased Space
Attach Site Plan
Amount of Tax Increment Requested for:
Land Purchase $
Public Improvement $
Site Improvement $
Current Real Estate Taxes on Project Site: $
Estimated Reat Estate Taxes upon Completion: Phase I $
(If Any) Phase II $
Construction Start Date:
Construction Completion Date:
If Phased Project:
Year
Year
-2-
Completed
Completed
Revised 1-13-09
C. PUBLIC PURPOSE
It is the policy of the Golden Valley HRA that the use of Tax Increment
Financing should result in a benefit to the public. Please indicate how this
project will serve a public purpose.
Job Creation: Number of existing jobs
Number of jobs created by project
Average hourly wage of jobs created
New development which will result in additional private
investment in the area.
Enhancement or diversification of the city's economic base and/or
housing stock.
Removal of blight or the rehabilitation of a high profile or priority
site.
Other:
-3-
Revised 1-13-09
D. SOURCES & USES OF FUNDS
SOURCES NAME AMOUNT
Bank Loan ~
Other Private Funds ~
Equity ~
Fed Grant/Loan ~
State Grant/Loan ~
EDA Micro Loan ~
ID Bonds ~
Tax Increment (present value of " pay as you go") $
Other ~
TOTAL ~
USES AMOUNT
Land Acquisition ~
Site Development ~
Construction $
Machinery & Equipment ~
Architectural & Engineering Fees $
Legal Fees ~
Interest During Construction ~
Debt Service Reserve ~
Contingencies ~
Other $
TOTAL ~
-4-
Revised 1-13-09
E. ADDITIONAL DOCUMENTATION
Applicants will also be required to provide the following documentation.
1. Current financial statements and those for the past two years:
Profit & Loss Statement
Balance Sheet
2. Brief description of the corporation/partnership's business, including history,
principal product or service, etc... Attach as Exhibit I.
3. Names of officers and shareholders/partners with more than five percent (5%)
interest in the corporation/partnership. Attach as Exhibit II.
4. Abut-for analysis (proforma). Attach as Exhibit III. (See example on page
5. Application fee of $10,000 (non-refundable)
-5-
Revised 1-13-09
The undersigned certifies that all information provided in this application is true
and correct to the best of the undersigned's knowledge. The undersigned
authorizes the Golden Valley HRA to check credit references and verify financial
and other information. The undersigned also agrees to provide any additional
information as may be requested by the City after the filing of this application and
to submit a supplemental application fee of $5,000 if the balance of application
fees previously submitted is expended.
I have received, and read, a copy of the Golden Valley Tax Increment Financing
Policy.
Applicant Name Date
By
Printed name
Its
Printed name
-6-
Signature
Signature
Revised 1-13-09
EXAMPLE BUT-FOR ANALYSIS
Mortgage
Equity
Tax Increment Financing
TOTAL SOURCES
Land
Site Work
Soil Correction
Demolition
Relocation
Subtotal Land Costs
Construction
Finish Manufacturing
Subtotal Construction Costs
Soft Costs
Taxes
Finance Fees
Project Manager
Developer Fee
Contingency
Subtotal Soft Costs
TOTAL USES
Rent-Space 1
Rent-Space
Rent-Space
Other
MortgagE
Net IncomE
Total Return on Equity
WITH NO WITH
TAX INCREMENT TAX INCREMENT
SOURCES AND USES SOURCES AND USES
SOURCES SOURCES
9,600,000 8,667,000
2,400,000 2,400,00
0 933,000
12,000,000 12,000,000
USES USES
1,500,000 . 1,500,000
300,000 300,000
468,000 468,000
100,000 100,000
65,000 65,000
2,433,000 2,433,000
6,750,000 6,750,000
250,000 250,000
7,000,000 7,000,000
350,000 350,000
35,000 35,000
850,000 850,000
542, 000 542, 000
540,000 540,000
250,000 250,000
2, 567, 000 2, 567, 000
12,000,000 12,000,000
Income Statement Income Statement
Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft.
100,000 $8.00 800,000 100,000 $8.00 800,000
! 25,000 $8.50 212,500 25,000 $8.50 212,500
S 25,000 $9.00 225,000 25,000 $9.00 225,000
0 $0.00 0 0 $0.00 0
1,237,500 1,237,500
20 Term 1,051,646 20 Term 949,439
9.00% Interest 9.00% Interest
9,600,000 Principal 8,667,000 Principal
185,854 288,061
~ 7.74% 12.00%
Revised 1-13-09
~F-~~ Memorandum
Housing & Redevelopment
o en a e Authorit
Y
763-593-8014 / 763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Meeting
January 11, 2011
Agenda Item
10. I-394 Corridor Redevelopment Area Plan
Prepared By
Jeanne Andre, Assistant Director
Summary
At its April 13 meeting the Housing and Redevelopment Authority (HRA) held a hearing on
the proposed I-394 Corridor Redevelopment Area Plan. After the public hearing the
Commissioners recommended a number of changes to the Plan, so final consideration was
delayed to allow staff to make the requested changes to the Plan. HRA consideration of the
Plan was continued to the July 13, October 12 and then the January 11 meeting.
Recent discussions related to the 3.9.4 project have caused staff to reconsider parts of the
Plan related to the East Area. If access issues related to the development of the Minnesota
Department of Transportation parcel at I-394 and Truck Highway 100 cannot be worked out,
staff may recommend reconsidering land use proposed for this area. Staff recommends
delaying consideration of the 1-394 Corridor Redevelopment Area Plan until access options
necessary for various land uses are fully explored with the developer. It is hoped this
information will be available for the next HRA meeting in January.
Recommended Action
Motion to continue consideration of the I-394 Corridor Redevelopment Area Plan to the April
12, 2011 meeting.