Loading...
05-24-04 PC Agenda AGENDA GOLDEN VALLEY PLANNING COMMISSION Regular Meeting Golden Valley City Hall, 7800 Golden Valley Road Council Chambers Monday, May 24,2004 7pm I. Approval of Minutes May 10, 2004 Planning Commission Meeting II. North Wirth Parkway Redevelopment Project, Tax Increment Financing (Soils Conditions) North Wirth Parkway District No.3. Applicant: The Housing and Redevelopment Authority Address: Lot 1, Block 1 North Wirth Parkway 5th Addition Purpose: Findings related to Tax Increment Financing Plan -- Short Recess -- III. Reports on Meetings of the Housing and Redevelopment Authority, City Council, Board of Zoning Appeals and other Meetings IV. Other Business A. Planning Commissioner Training - Manager's Conference Room B. City Tour V. Adjournment -<t . Regular Meeting of the Golden Valley Planning Commission May 10, 2004 A regular meeting of the Planning Commission was held at the Golden Valley City Hall Council Chambers, 7800 Golden Valley Road, Golden Valley, Minnesot onday May 10, 2004. Chair Pentel called the meeting to order at 7 pm. . is quest from Allianz is to amend their PUD approved by the City 00. He said that the office building Allianz built was proposed to be a opment and that the first phase, a 400,000 square foot office building eted and is located at the corner of Golden Hills Drive and Xenia Avenue. He said tong with the first building, a parking ramp was constructed to provide for the employees in the phase one building. He stated that the applicants are planning for a second phase of construction which will be a 200,000 square foot office building just to the west of the existing building and that along with that they are proposing to add some additional parking to the parking ramp. He explained that Allianz originally intended to keep the area west of the parking ramp as green space and use it for proof of parking but they have paved it and are using it for temporary surface parking until the phase two construction. He stated that Altianz is now ina situation where they are moving approximately 200 employees into this facility from their office in St. Louis Park so in order to provide adequate parking for these employees, they are proposing this second Those present were Chair Pentel, Commissioners Eck, Hackett Schmidgall and Waldhauser. Also present were Director of PI Mark Grimes and Administrative Assistant, Lisa Wittman. en, ent, I. Approval of Minutes April 26, 2004 Planning Commission Mee . Eck referred to the fourth paragraph on pa the building being placed at the "front" of that Pentel was referring to ack part of the lot as-noted. MOVED by Eck, seconded by Wal the April 26, 2004 minutes with t carried unanimously to approve correction. II. Informal Public He Amendment #1 esign Plan - Allianz Life - PUD No. 87 Applicant: w for the construction of a 247 stall, temporary parking lot. . Minutes of the Golden Valley Planning Commission May 10, 2004 Page 2 temporary parking lot, which would also be used until they construct their second building. Grimes explained that staff wants to assure that this proposed temporary parking lot doesn't become a permanent lot without going through the proper procedures so they are recommending as a condition of approval that if the building doesn't get built within three years that these parking lots be made into a permanent parking lots with curb and gutter. Grimes stated that ponding is not an issue with this development because all of the drainage from the site goes into the regional pond nearby. . Grimes stated that Allianz has done a very good job following the plan they brought forward to the City when their original PUD w he has talked to the City Engineer and the City's Traffic Engin any issues with congestion in that area. Waldhauser asked if the City would have any objecti roma'lning norrn~nent ~llrf~CO p arkinn 'Ifthe bu' lid' In ....... I III t-',,",IIIIU ''''''UIIU "" I ~ I'" . II Grimes explained that the applicant's original in that the City feels confident that they will build t Sl I fthis parking lot ilt within three years. a second building and ilding. Waldhauser said that another option for: ramp. Grimes said that would be a po the construction at the same time. xpand their existing parking s Allianz would like to do all of Hackett asked if the City's land temporary parking were to added as a condition of qui nts would apply if the proposed anent parking lot. Grimes said that could be a part of the applicant's financial guarantee. Pentel asked if Alii City recently comple operating as p eir eir traffic management plans. Grimes stated that the ffic study in the area and that staff feels Allianz is ctions. ngly the City feels about 2,400 employees being the oyees at this site at the end ofthe second phase. Grimes said use e traffic management plan done in 2000 was based on that s. He explained that the City has the right to go back and meet with ecomes an issue. . Tom Louc , oucks Associates, representing Allianz, stated that he has read the staff reports and thoroughly agrees with the conditions and recommendations in them. He explained that the phase two building is on schedule to be constructed within the next two to three years. He stated that Allianz has followed their traffic management plan by staggering work hours, encouraging car pooling and offering bus incentives. He stated that Allianzis predicting more than 2,400 employees in the long term, but that it wouldn't affect the traffic plan because people would be working in different shifts. He added that one reason they need these additional parking spaces is because they have 100 to 150 consultants coming to the site every day. . Minutes of the Golden Valley Planning Commission May 10, 2004 Page 3 Eck asked if the number of employees for the phase two construction represents further consolidation of existing facilities being closed and brought to this site, or if it represents the entire anticipated growth of the business. Loucks said it consists of both facilities being consolidated to this site and new employees. Eck questioned if the Phase II building is going to be too small before it is even built. Loucks said that the indications are that there will be approximately 2,450 employees total located at this site. Pentel opened the public hearing. Seeing and hearing no one, Pe hearing. blic Pentel stated that this is a fairly straight forward proposal a to staffs recommendation would be to add the comments re requirements being applied if this temporary lot beco . MOVED by Eck, seconded by Hackett and moti approval for the construction of a .247 stall, tern conditions: a sly to recommend lot with the following 1. The site plans submitted as part of dated April 19, 2004 and prep approval. n 0 UD Amendment by Allianz Life, iates, shall become a part of this 2. If the second phase offi of the PUD amendm shall have concrete c by the City Engi an shall submit a fin determine completed i ot started within three years of the final approval t rary parking area, all temporary parking areas ut er p cedaround the perimeter in a manner approved be landscaped as per the City's requirements. Allianz acceptable to the City Attorney in an amount r to ensure that the curb and gutter construction will be 3. In the memo from Deputy Fire Marshall Ed Anderson and dated all become a part of these conditions of approval. 4. ndations in the memo from City Engineer Jeff Oliver, PE, and dated May I become a part of these conditions of approval . III. -- Short Recess -- Reports on Meetings of the Housing and Redevelopment Authority, City Council, Board of Zoning Appeals and other Meetings No other meetings were discussed. . Minutes of the Golden Valley Planning Commission May 10, 2004 Page 4 IV. Other Business Grimes suggested having a tour and orientation for the new Planning Commission members at their next meeting on May 24. Pentel suggested going back through some past proposals and inviting recently retired members, Rick Groger and Kevin McAleese to attend. Grimes said he would contact Groger and McAleese and the City Council representative to the Planning Commission and invite them to attend the next meeting. ox After discussion, the Commissioners decided to meet at 6 pm on dinner with their orientation and then go on the tour of the City. The Commissioners adjourned and reconvened in the Coun the following presentation: S~...H......~~t G~I,J~~ 'Valle" "l020 ~~,J "ln35 r-o~~~~ UULlIVVt:l~ UIUt:l11 Y - L G1IIU LV '-' III"t:I Presented by MURP Capstone Team Hubert H. Humphrey Institute of Public Affairs . V. Adjournment The meeting adjourned at 7:25 p . . . . Memorandum Housing & Redevelopment Authority 763~593-8002 I 763-593-8109 (fax) alley 7800 Golden Valley Rd. Golden Valley, MN 55427 763-593-8014 Date: May 20, 2004 To: Golden Valley Planning Commission From: Jeanne Andre, Ass.istant Director, Housing and Redevelopment Authority Subject: Findings Related to Tax Increment Financing Plan The HRA has adopted a draft N.orth Wirth Tax Increment Financing (TIF) Plan related to a....... proposed project that could bed~veloped on Lot 1, Block 1, North Wirth Parkway s.th Addition. The purpose of the new TIF district would be to help with extraordinary soil remediation costs necessary to develop this lot. ThE3Gity Council will consider adopting the TIF plan following a public hearing anticipated to occur on July 6,2004. To assist in Council deliberations state law provides for input from the school district, county and the Golden Valley Planning Commission. The Planning Commission is to determine if the proposed development is zoned properly and is in conformance with the City's Comprehensive Land Use Plan and the City's general plan of redevelopment. This district is located in the North Wirth Parkway Redevelopment Area. The following is a brief description of the plan to assist the Planning Commission in its review. The developer plans to construct office/warehouse condominium units to be sold to individual owners. He anticipates up to six separate structures, to be constructed in a phased development. (See attached site plan and elevation.) The property is currently zoned Light Industrial, and office warehouse is a permitted use in this zone. City staff therefore recommends that the Planning Commission adopt the findings put forward in the attached resolution. Requested Action: Adopt Resolution 04-01, Approving the Tax Increment Financing Plan for Tax Increment Financing (Soils Condition) North Wirth District NO.3. . ~~l$~ . . la I ~ .i .:a a , H~ p~ -8:: dl .'.. ~m I h . . ,e9"rL >~ <tl<< 013 ~~ O~ ~~ li:i:2 o~ '" al lil . w ';l g ~ 0::: <( a.. U'):s U')~ UJw Zz _Z U')- :::>~ ca~ ~~ O:::z _w 3:9 Ig ti:: o z i 11 ~ -c:i .:J SlrE!- ._~ "'''' Q) i; l~lx ': f H~~ -= '" ..};. ~=~i ?~ . . . ~ ~".:;< <.t r-:l{:;; .~;: (' t ~ I " I ~,.,; ;~ "'; . v? :.~c" r :l " .,~ r~ [t' J l:'; f, ( ~~, :; i. '.' ./.,; t.~ :f '\~.: t ,t.... " t" ",1" ~~~~ ~ . ~ 2, '..' I ,< ,.< % I ." ~'" , ,~" -.;'R:' \- :.:~. ~~. ::" ,-:-,d~~~; ~ t loJ< ., . n 1<- ',,(~ ,./it': ..... ~.~ ,< ' " .. I~ ~;,,! ;.'~ . '~~%. f~:~~:~ i.:;:':-:':; ~ ~)... .,",-",. f!- 'U'l~;:~?i. .., ~ '~'. ~~, . . CERTIFICATE AS TO RESOLUTION I, the undersigned, being the duly qualified and acting Chair of the Planning Commission of the City of Golden Valley, Minnesota (the "Commission"), hereby certify that the attached resolution is a true copy of Resolution No. _, entitled: "RESOLUTION APPROVING THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (SOILS CONDITIONS) NORTH WIRTH DISTRICT NO.3" (the "Resolution"), on file in the original records of the Commission in my custody, and that the Resolution was duly adopted by the Authority at a meeting duly called and held on May 24, 2004. WITNESS hand officially this _ day of May, 2004. . . . Resolution 04-1 May 24, 2004 Commissioner introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (SOILS CONDITIONS) NORTH WIRTH DISTRICT NO.3 , ' BE IT RESOLVED by the Planning Commission of the City of Golden Valley, Minnesota, as follows: Section 1. Recitals. 1.1. It has been proposed that the Golden Valley Housing and Redevelopment Authority (the "Authority") and the City of Golden Valley, Minnesota (the "City"), establish, within The North Wirth Parkway Redevelopment Project, Tax Increment Financing (Soils Conditions) North Wirth District NO.3 (the "TIF District") and approve and adopt the tax increment financing plan ("TIF Plan") relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.001 through 469.047, inclusive, and Minnesota Statutes, Sections 469.174 through 469.1799, inclusive. 1.2. The Authority and the City have caused to be prepared the TIF Plan and have referred the TIF Plan to this Commission for review prior to the holding of a public hearing upon published notice as required by law. Section 2. FindinQs. 2.1. The Commission hereby finds that the TIF District is properly zoned and will generally complement and serve to implement policies adopted in the City's comprehensive plan. 2.2. The Commission hereby finds that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole Paula Pentel, Chair ATTEST: Mark W. Grimes, Director of Planning and Development The motion for the adoption of the foregoing resolution was seconded by Commissioner and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted, signed by the Chair and her signature attested by the Director of Planning and Development. . City of Golden, Valley, Mi,nnesota Golden Valley Housing & Redevelopment Authority ! I Tax Increment Financing Plan for Tax Increment Financing (Soils CondiUon) North Wirth District NO.3' . (North Wirth Project) Dated: May 13, 2004 . Prepared by: SPRINGSTED INCORPORATED 85 E. Seventh Place, Suite 100 St. Paul, MN 55101-2887 (651) 223-3000 . . . TABLE OF CONTENTS Section Paae(s) A. Definitions........ ........... ..... ........ ...................... ...... ............... .............................. ............ ........1 B. Statutory Authorization.................................................... ........................ ................... ...... .....1 C. Statement of Need and Public Purpose ................................................................................1 D. Statement of Objectives... ............ .................. ............... .............. ............... ............... ..... ....... 1 E. Designation of Tax Increment Financing District as a Soils Condition District ....................... 1 F. Duration of the TIF District and the Three Year Rule ............................................................2 G. Property to be Included in the TIF District .............................................................................3 H. Propertyto be Acquired in the TIF District ............................................................................3 I. Specific Development Expected to Occur Within the TIF District ..........................................3 J. Findings and Need for Tax Increment Financing...................................................................4 K. Estimated Public Costs........... ........................ ..................... ............... .............. ........ .... ........5 L. Estimated Sources of Revenue....... ........ ....... ......,......... .......~.................................... ........... 5 M. Estimated Amount of Bonded Indebtedness .........................................................................5 N. Original Net Tax Capacity....... ............... ......... ..... .......... ....................... ............ ............. ....... 5 O. Original Tax Capacity Rate ....................... ..... ........................... ........... ...... ................ ...........6 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment .....................6 a. Use of Tax Increment................. ............ .......... ..................................... ...... ........... ...............7 R. Excess Tax Increment ...... ....... ....... .... ............... ............ ............ ...:........... ................. ...........8 S. Tax Increment Pooling and the Five Year Rule..................................................................... 8 T. Limitation on Administrative Expenses ....... ................. ........ .............. ..... ................ ...............9 U. Limitation on Property Not Subject to Improvements - Four Year Rule ................................. 9 V. Estimated Impact on Other Taxing Jurisdictions ...................................................................9 W . Prior Planned Improvements... ........................................ ....................... ............................. 10 X. Development Agreements.... .................. ............................ ............. ...... ........ .............. ........ 10 Y. Assessment Agreements ..... ........ .......... ............. ........................ ............. ..................... ...... 10 Z. Modifications of the Tax Increment Financing Plan ............................................................. 10 AA.Administration of the Tax Increment Financing Plan ...........................................................11 AB.Financial Reporting and Disclosure Requirements ....................... ....................................... 12 Map of the Tax Increment Financing District..........,...............................................EXHIBIT I Assumptions Report............... ............................................................... ....... ........ EXHIBIT II Projected Taxi ncrement Report................ ..... ......... ................... ......... ....... ......... EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report ......................................EXHIBIT IV Projected Pay-As-You-Go Note Report................................................................. EXHIBIT V Market Value Analysis Report...................... .................... ............. ........... ............ EXHIBIT VI . . . City of Golden Valley, Minnesota Section A Definitions The terms defined in this section ,have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority" means the Golden Valley Housing and Redevelopment Authority. , I "City" means the City of Golden Valley, Minnesota; also referred to as a "Municipality". I I "City Council" means the City Council of the City; also referred to as the "Governina Body". I "County" means Hennepin County, Minnesota. "Redevelopment Proiect" means The North Wirth Parkway Redevelopment Plan in the City, which is described in the corresponding Redevelopment Plan. I "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project. "Proiect Area" means the geographic area of the Redevelopment Project. I "School District" means Independent School District No. 270, Minnesota'l "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.179 ,both inclusive. "TIF District" means Tax Increment Financing (Soils Condition) North Wirth District No.3. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section 8 Statutory Authorization See Evolution of North Wirth Planning, page 1 of the Redevelopment Plan for the Redevelopment Project. Section C Statement of Need and Public Purpose See Findings in Support of Redevelopment, page 5 of the Redevelopment Plan for the Redevelopment Project. Section D Statement of Objectives See Redevelopment Goals and Objectives, page 6 of the Redevelopment Plan for the Redevelopment Project. Section E Designation of Tax Increment Financing District as a Soils Condition District A soils condition district is a type of tax increment financing district consisting of a project, or portions of a project, in which' the Authority finds by resolution that one of the following conditions exist: SPRINGSTED Page 1 . . . City of Golden Valley, Minnesota (1) there exists the presence of hazardous substances, pollution or contaminants ,which , require removal or remedial action for use, and such removal and remedial action is specified in a development action response plan; I See Section 3.3 of the Addendum to Corrective Action Design, a study submitted to the MPCA dated December 1993. (2) the estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before completion of the preparation; The requirement specified in (2) above may also be satisfied if each parcel of property in the district either meets the requirements of (2) above or has estimated removal and remedial costs which exceed $2 per square foot. Remedial action is estimated at a cost of $1,000,000 or $4.76 per square foot. Current footage of the site is 210,060 X $2.00 per square foot = $420,120, which is significantly less than the estimated cost of remedial action. (3) the proposed removal or remediation action must be specified in a development action response plan to satisfy the requirements specified in (1) above. A development action response plan is a plan or proposal for removal actions or remedial actions submitted to the pollution control agency and the actions recommended in the plan or proposal are approved in writing by the commissioner of the agency as reasonable and necessary to protect the public health, welfare, and environment. The commissioner shall review the development action response plan and approve, modify, or reject the recommended actions within 30 days after submission of the plan (or revised plan) by the authority. The commissioner shall notify the authority in writing of the decision on the recommended actions within 30 days after the decision and, if the recommended actions are rejected, shall specify the reasons for rejection. Tax increments derived from a soils condition district may only be used to: (1) acquire parcels on which improvements described in (2) below will occur; (2) pay for the cost of removal or remedial action; and (3) pay for the administrative expenses of the authority allocable to the district, including the cost of preparation of the development action response plan. Section F Duration of the TIF District and the Three Year Rule Soils Condition districts may remain in existence 20 years from the date of receipt of the first tax increment. The Authority reserves the right to allow the TIF District to remain in existence the maximum duration allowed by law (projected to be through the year 2026), but anticipates that the TIF District will be decertified prior to that time (see Section P). All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. SPRINGSTED Page 2 . . . City of Golden Valley, Minnesota In addition, no tax increments shall be paid to the Authority from the TIF District after three years from the date of certification, unless within !hat time period: (1 ) bonds have been issued in aid of 'the Project Area (except revenue bonds issued pursuant to M.S. Sections 469.152 to 469.165); I (2) (3) the Authority has acquired property within the TIF District; or ! I the Authority has constructed public improvements within t~e TIF District. I Section G Property to be Included in the TIF District The TIF District is an approximately 4.3 acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I. ThE( boundaries and area encompassed by the TIF District are described below: , ParcellD Number Leqal Description , I 19-029-24-13-0027 Lot 1, Block 1, North Wirth pr' rkway 5th Addition The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The Authority currently owns all of the property located within the TIF District. Section I Specific Development Expected to Occur Within the TIF District The development will consist of four office buildings, for a total of approximately 24,000 square feet. The expected start date of construction will be September of 2004, and completion dates shown as follows: Date January 1 , 2006 January 1, 2012 Cumulative Sq. ft. completed 12,000 sq. ft. 24,000 sq. ft. Taxes payable 2007 2013 The final building is expected to be fully constructed in 2011 and be 100% assessed and on the tax rolls as of January 2, 2012 for taxes payable in 2013. At the time this document was prepared there were no signed construction contracts with regard to the above described development. SPRINGSTED Page 3 . City of Golden Valley, Minnesota Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies asa soils condition district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the Authority, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The proposed development site currently contains contaminated soils, and requires remedial actions before development can occur. The Authority has no reason to expect that significant development would occur without assistance similar to that provided in this plan. Therefore, the Authority concludes as follows: . a. The Authority's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $0, except for a small amount attributable to appreciation in land value. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be approximately $3,240,000. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $383,029 (See Exhibit VI). d. Even if some development other than the proposed development were to occur, the Authority finds that no alternative would occur that would produce a market value increase greater than $2,856,971 (the amount in clause b less the amount in clause c) without tax increment assistance. (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole; and . (4) The reasons and facts supporting this finding are that the TIF District is properly zoned, and the TIF Plan has been approved by the City Planning Commission and will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by private enterprise. The reasons and facts supporting this finding are that remedial actions are necessary so that development and redevelopment by private enterprise can occur within the Project Area. SPRINGSTED Page 4 . . . City of Golden Valley, Minnesota (5) The Authority elects the methop of tax increment computation set forth in Minnesota Statutes, Section'46~.177, Subdivision 3(b) (see method (b) in Section P) for all commercial/indu~trial property. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. reimbursement from tax increments of the TIF District. I Such i costs are eligible for I $ 1,000,000 395,000 100,000 $1 ,4~5,000 Site Improvements/Preparation Expenses Loan Interest Payments Capitalized Interest Total The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. I Section L Estimated Sources of Revenue I $ 9JO,000 575,000 $1,495,000 Tax Increment Revenue Sale Proceeds Total The Authority anticipates providing financial assistance to the proposed development through the use of a pay-as-you-go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay- as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed $450,000. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. SPRINGSTED Page 5 . . . City of Golden Valley, Minnesota The Estimated Market Value of all property within the TIF District as of January 2, 2003, for taxes payable in 2004,. is $316,200. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $5,574. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1 ) (2) (3) (4) Section 0 changes in the tax-exempt status of property; reductions or enlargements of the geographic area of the TIF District; changes due to stipulation agreements or abatements; or changes in property classification rates. Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. " In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TI F District. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2003 and payable in 2004, is 123.498% as shown below. The County Auditor shall certify this amount as the original tax capacity rate of the TIF District. Taxina Jurisdiction 2003/2004 Local Tax Rate City of Golden Valley Hennepin County ISO # 270 Other 45.445% 47.324% 22.203% 8.526% Total 123.498% Projected Retained Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. Section P For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The option the Authority elects shall remain the same for SPRINGSTED Page 6 . City of Golden Valley, Minnesota the life of the TIF District, except that a single change may be made at any time from option (a) to option (b) above. The Authority has elected to"u~eoption (b). The County Auditor shall certify to the' Authority ,the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the T'IF District. I Exhibit II gives a listing of the various information and assumptions used ir preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. I Section Q Use of Tax Increment . Each year the County Treasurer shall deduct 0.36% of the annual tax inlprement generated by the TIF District and pay such amount to the State's General Fund. $uchamounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. I The Authority has determined that it will use 100% of the remaining tax i1crement generated by the TIF District for any of the following purposes: I (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1 a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. . Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or SPRINGSTED Page 7 . . . City of Golden Valley, Minnesota fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. , Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 80% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 20% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period.or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TI F District, which were entered into within five years after certification of the district; or . (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TI F District, at least 80% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. SPRINGSTED Page 8 . . . City of Golden Valley, Minnesota The Authority does not anticipate that tax increments will be spent outside of the TI F District (except for allowable administrative expenses); ,11()wever, the Authority does reserve the right to allow for tax incrementpooling from the TIF District in the future. Section T Limitation on Administrativ~ Expenses I Administrative expenses are defined as all costs of the Authority other thlfin: (1 ) (2) amounts paid for the purchase of land; I amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; relocation benefits paid to, or services provided for, persons or businesses residing or located within the TIF District; or (4) amounts used to pay interest on, fund a reserve for, or, sell at a discount, tax increment bonds. I Administrative expenses include amounts paid for services provided ~y bond counsel, fiscal c,onsultants, planning or economic development consultants, and actu~,~1 costs incurred by the County in administering the TIF District. Tax increments may be use<Jj to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total estimated public costs authorized, by the TI F Plan or (b) 10% of the total tax increment expenditures for the project. (3) Section U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TI F District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A SPRINGSTED Page 9 . City of Golden Valley, Minnesota positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. SectionW Prior Planned Improvements The Authority. shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements . If within a project containing a soils condition district, more than 10% of the acreage of the property to be. acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide. recourse for the Authority should the development not be completed. The Authority anticipates entering into an agreement for development, but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Authority does not anticipate entering into an assessment agreement. Section Z Modifications of the Tax Increment Financing Plan . Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: l;:DD INr.C;:TPn Page 10 . City of Golden Valley, Minnesota (1 ) (2) the only modification is elimination of parcels from the TIF District; and the current net tax capacity of' the parcels eliminated equals or exceeds the net tax capacity of those parcels in th'e TIF District's original net tax capacity, or the Authority agrees that the TIF District's original net tax capacity will be reduced by no more than th~ current net tax capacity of the parcels eliminated. , , The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF Distri~t may be reduced but not enlarged after five years following the date of certification. ' . Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such' plan to the Minnesota Department of Revenue. Th,e Authority shall also request that the Coynty Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the, TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any ~ssessment agreement establishing the minimum,. market value of land and improvements in thl. TIF District, and shall request that the County Assessor review and certify this assessment agr . ement as reasonable. The County shall distribute to the Authority the amount of tax incr ment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the Tl F District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TI F District. The reverse shall also apply; . (c) the original net tax capacity may be modified by any approved enlargement or reduction of the TI F District; if the TIF District is classified as an economic development district, then the original net tax capacity shall be increased by the amount of the annual adjustment factor; and (b) SPRINGSTED Page 11 . City of Golden Valley, Minnesota if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity'shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TI F District. (d) Section AS Financial Reporting and Disclosure Requirements The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility for financial and compliance auditing of the Authority's use of tax increment financing. On or before August 1 of each year, the Authority must annually submit to the State Auditor, County Auditor and to the governing body of the municipality a report which shall: provide full disclosure of the sources and uses of public funds in the TIF District; . (1 ) (2) (3) (4) permit comparison and reconciliation of the accounts and financial reports; permit auditing of the funds expended on behalf of the TIF District; and be consistent with generally accepted accounting principles. The report shall include, among other items, the following information: the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; the net tax capacity for the reporting period of the district and any subdistrict; the captured nettax capacity of the district; any fiscal disparity deduction from the captured net tax capacity under section 469.177, subdivision 3; the captured net tax capacity retained for tax increment financing under 469.177, subdivision 2, paragraph (a), clause (1); any captured net tax capacity distributed among affected taxing districts under 469.177, subdivision 2, paragraph (a), clause (2); the type of district; the date the municipality approved the tax increment financing plan and the date of approval of any modification of the tax increment financing plan, the approval of which requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph (a); the date the authority first requested certification of the original net tax capacity of the district and the date of request for certification regarding any parcel added to the district; SPRINGSTED Page 12 . City of Golden Valley, Minnesota (10) the date the county auditor first certified the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the district; ," (11 ) the month and year in which the authority has received or anticipates it will receive the first ,increment from the district; the date the district must be'decertified; (12) (13) i I for the reporting period and prior years of the district, the ~ctual amount received from, at/east, the following categories: I (i) tax increments paid by the captured net tax capacity retained for tax increment financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding any excess taxes; I tax increments that are interest or other investmeht earnings on or from tax increments; : tax increments that are proceeds from the salel or lease of property, tangible or intangible,' purchased by the authority Wfith tax increments; tax increments that are repayments of loans or ot er advances made by the authority with tax increments; , bond or loan proceeds; special assessments; grants; and transfers from funds not exclusively associated with the district; (14) for the reporting period and for the prior years of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: (i) acquisition of land and buildings through condemnation or purchase; (ii) site improvements or preparation costs; (iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; (iv) administrative costs, including the allocated cost of the Authority; and (v) public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and . (vi) transfers to funds not exclusively associated with the district; (15) for properties sold to developers, the total cost of the property to the Authority and the price paid by the developer; SPRINGSTED Page 13 . City of Golden Valley, Minnesota (16) the amount of any payments and the value of in-kind benefits, such as physical improvements and the use of building space, that are paid or financed with tax increments and are provided to another governmental unit other than the municipality during the reporting period; . (17) the amount of any payments for activities and improvements located outside of the district that are paid for or financed with tax increments; (18) the amount of payments of principal and interest that are made during the reporting period on any non-defeased: (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go contracts; (19) the principal amount, at the end of the reporting period, of any non-defeased: (i) general obligation tax increment financing bonds; (ii) other tax incrementfinal:1cing bonds; and . (iii) notes and pay-as-you-go contracts; (20) the amount of principal and interest payments that are due for the current calendar year on any non-defeased: (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go contracts; (21) if the fisGal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; (22) whether the tax increment financing plan or other governing document permits increment revenues to be expended; (i) to pay bonds, the proceeds of which were or may be expended on activities outside of the district; (ii) for deposit into a common bond fund from which money may be expended on activities located outside of the district; or . (iii) to otherwise finance activities located outside of the tax increment financing district; and (23) the estimate of contained in the tax increment financing plan of the cost of the project, including administrative expenses to be paid with tax increment; and SPRINGSTED Page 14 . City of Golden Valley, Minnesota (24) any,additienal infermatien the state auditer may require. The Autherity must alse annually, publish in' a hewspaper .of general circulatien in the City an annual statement for each tax increment financi~g district shewing: theerigihal net, tax capacity .of the district and any subdistrict under 469.177, subdivisien1 ; , I (1 ) (2) (3) (4) (5) (6) (7) . (8) (9) I the net tax capacity fer the reperting peried .of the district ~nd any subdistrict; I the captured net tax capacity .of the district; I the. menth and year in which the autherity has received .or anticipates it will receive the first increment from the district; the date the district must be decertified; the ameunts .of tax increment received and expended in the reperting peried; and any additienal informatien the autherity deems necessary. The annual statement must inform readers that additienal informatien regarding each district may be .obtained from the autherity, and must explain hew the additienal infermatien may be requested. The Autherity must publish the annual statement for a year ne later than August 15 .of the next year. The autherity must identify the newspaper .of general circulatien in the municipality te which the annual statement has been .or will be submitted for publicatien and provide a cepy .of the annual statementte the ceunty beard, ceunty auditer, the scheel beard, the state auditer, and the geverning bedy .of the municipality en or befere August 1 .of the year in which the statement must be published. The reperting and disclesure requirements .outlined in this sectien shall begin with the year the district was certified, and shall end in the year in which beth the district has been decertified and all tax increments have been spent .or returned te the ceunty for redistributien. Failure te meet these requirements, as determined by the State Auditers Office, may result in suspensien .of distributien .of tax increment. . SPRINGSTED Page 15 . . Exhibit I . MAP OF TAX INCREMENT FINANCING (SOILS CONDITION) NORTH WIRTH DISTRICT NO.3 NORTH WIRTH PARKWA Y 5TH ADDmON ./ 5J~ ROCM,! AlltJB-0"Al?O A...7iJ/7?CII./ t.> i i."" " ~!"'j ~"i(; . "V,V. ,........ f /..... ii' i '-. ,$ 0 " /- .. \ , ~!O f"!: I , t :.J V ,. . ." tl .~ ' " ,a' to I .' IV // liOli?T;i ::rR:-h' i~'JAl~J(~:~V'31i/D ACeiiiO,lAl R.t..S. "'" "266 o ~.~~*;".,ttf'~.~UfWl . OOIO'!U ~~lfAQ; tHe ....... <.f' P.t"'~'I!i A~ II Sunde ',ond Stln'e:ring, U,A,:. ~...' """ 1JQ~!Sll .....~,,,. ~ M" , - RoT. DOC. NO. - CoR. DOC. NO. . .~ '~(l" a.\l,W~ n ',fttIE!E P1WRW!S: Thd }1o>i...g'_.f1.....~~.,t.J,,<\l!'M,,~ -~,*,~ tn, rot "hI'i '1~~ 4 lIlmwuLe ~'tt}.~. ~. ,;'iftltf t.i d'l.""r.mt 4~ ~t.';".-m" '" fflllil '~"f111t ~lt. 1Ml~ of \4r,tnoth !~ ~t: L;ll t Sic<:m I, ~I 'litIftN "'A.~'j:IiA'f 4nt ,l,c<<l!l}4i, ,~ ~ ~t~:rt.-;:'~ :zr.~~.:;:~=),~~:::.=..;: =:'11 diM tb !lllli't'l~ Qnrt~ .1 ~. "'*'"t'~ ~d ~l'- ,t, T~~ "' '100"" ':1'" ke. t!fiHf fin """""I. " V'o'fjlHqIl'd ,..,~~iM' ". wClrm 'lMl~ p,\rt(Vf.k.v ,1<'N ~ N ... Ji!t",.,,n;rt M t:- r;l11 ~ twd_ -Vd'*"f ..". ~~.... '~'W 4t'l'iliu,p -eM wn.y ~~'.'" n-_ JIIl'l.'''Jt~.t, ~=:: =~~:,I:r':~~~:=~~";:~::;~.-"::" ~~ ~~ ~?~ II" . _ -. . :Ill........ ~I~,,", ...a Al'df~","~ .'J,t1hUlW' 1>1 "..., lW'- "'. -01.1 ir ~. '141., ~~_._""^,~.,,^.~l'.___..->.,,,,~ ~f__",.,--"Il.............,,,^,,~-___, 5",lI.'~ t# W'fdCE!(l:T'. """""1:# _.__"__ rt4 ~ ~~~ __ .....,lilttttiiJ; ....irr:.. m. tHt _ '"/ fl! """.",.".,..~ ~__)'~,.... . ,llt"".., .., " ..-tt_r.; .. n. ~A_~_._ _ ......~.....u.;~~=::t:JI ~~-:(11~~ 'IN - fM f;ft,y.' i;dd&'l ~~'*'-~ ---.. ~~ f: l'tlll""-"= ..-tlt, UtllC I ~ .~ ...... plllIfHd u,. ..-...., ...... en ~.. JWl '" MC111H '!lIA1)e; JlWlfi!ll.1 $ftt :l8OtfR1lii ,~~ '~Jtlllt" '<t ,..,.u t1rp,......fJ..,P frf ,,,-,....,. Ift-dl .. ....... tI'.~~.tMtMptdl:",,~ar.dtr.!~ht tIIafMh ~"~.,mkftllkd'l: ft.~~ ~~ =-_~N'(ft':= ~~::::~~";;.~~~ t:r ~~:~~ ~mM ~ Oil :r>l~. ~~~;~~':r. stArt CF v~t. ~Jlfh' N'"",~...~_ Tba ~4t!q' '-'l"M'fC\"'. Wt!'fiMh ..... ~ .... tIftt" WI! ~"'-(IlI _"',.",,,:,,,,.-.:- fO_ II" Jr#iIt1o It ~_ l.~"'" l.Md s...,....A ~~'::......~~_~~~_I. U:t&m~ f..-.__ ............-~- ~DVf.\'A.t.lY; ~!ODTA '''~ ~ ~r KO'I1W '.~1t'; ~AA.~'l\'t )'J,lt<! ~":i\lM.'" ~'IM' ~,.. tiy ". dt;,~" ... ~~~~~~~~;-;T,t~~.~~~l~ 'wW Et~ ... bur! ~ .1' 1kI: ,et<; H I~. ,...-.ri-i 3d ." ~ ..'" !'J.-'- '"'*' ~WYla eM' ~_...dlIt,",...... ~ tf...~. 9tfIMK C4!f'f' tD....ttt af CCt..IlVt ".Ii;&.t.P~ _tlf~1Ji: !y ----.;..,~_"",....~_ lit."'" By _~.._.___ t.ll.,~ T"',.....'U;'i~5 DtP~~'1 ~.C--'l'> "'-',,.-., I ....t ,..",on",' !!NIl la. ~~~ h 20_ ~_ ",.. ~ ,M"wI ..... ,.16 ,.. HM ...".... fII'l tto_ tirtt,lhtIM'l."_iliffl(- '.. .10_ - ~~ M. -a~; ~"" ",",w '" O~ ~ ftM!lOM.. '..toM.... ClMMt)!~"""',. ~. "- II..... iT~'. SK. )5.38;s1J$ (,,"i),.~ ~J l'Il!II.'" ~ f1" __ .-'t _--......._ 2D.- 'WtIWYI",~' ~~)',~p !II'1~----- ~=~~"' ~.\~~ ~~'~ p~AY ~lM ~.. I'tM ~~ ~~ 1tft_tklr"- ., .~~d:---oe-'~_m. W~"'. Cl.Mil'l.~ f/!'~ IIi' ___._.............._...._~r ~f'" ttr.tCfft€Jt.~rn tt.ud~ t,Ik~ ~ !W~., ....Ill't b\M 'ft. ~ pUt ~ \KjQm 'Mtrt;P'NW:*^1 'fM .~ lII'l1I!' fiN ~ ~. .. ~ ~ Ih'* _'A_*1 tt.---"",>-", ao-_;J' _..'~-(I'I. '\It-:ehui #. ~: ~w\Ot,- kuw~.. ,,. _"""~,.,,,.__..........o....l.)' SPRINGSTED Page 16 . . . Exhibit II I Assumptions.Heport Golden Valley Housing & Redevelopment Authority, Minnesota Tax Increment Financing (Soils Condition) North.Wirth District No.3 North Wirth Project Scenario A Type of Tax Increment Financing District Maximum Duration of TI F District Projected Certification Request Date Decertification Date Base Estimated Market Value Original Net Tax Capacity Base Estimated Market Value Increase in Estimated Market Value Total Estimated Market Value Total Net Tax Capacity Soils Condition 20 years from 1 st incremtnt 06/01/04 12/31/26 (20 Years of Increment) I 2003/2004 $316,200 $5,574 AssessmenVCollection Year 2004/2005 2005/2006 2006/2007 2007/2008 $316,200 $316,200 $316,200 $316,200 0 0 1,620,000 1,620,000 $316,200 $316,200 $1,936,200 $1,936,200 $5,574 $5,574 $31,650 $31,650 City of Golden Valley Hennepin County ISD #270 Other Local Tax Capacity Rate 45.445% 47.324% 22.203% 8.526% 123.498% 2003/2004 Fiscal Disparities Contribution From TIF District Administrative Retainage Percent (maximum = 10%) Pooling Percent 30.5180% 0.00% 0.00% Bonds Bonds Dated Bond Issue @ 0.00% (NIC) Eligible Project Costs Present Value Date & Rate 06/01/04 $0 $0 Note (Pav-As-You-Go) Note Dated 06/01/04 Note Rate 6.00% Note Amount $375,800 . 06/01/04 6.00% Notes Base value used is the most recent assessed value SPRINGSTED Page 17 . . Exhibit III. I Projected Tax Increment Report I Golden Valley Housing & Redevelopment Authority, Minnesota Tax Increment Financing (Soils Condition) North Wirth District No.3 North Wirth Project Scenario A Less: Less: Retained Times: Less: Less: P.V. Annual Total Original Fiscal Captured Tax Annual State Aud. Admin. Annual Annual Period Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Retainage Net Gross TI To Ending Capacity Capacity 30.5180% Capacity Rate Increment 0.360% 0.00% Revenue 06/01/04 1 2 3 4 5 6 7 8 9 10 6.00% 12/31/04 5,574 5,574 0 0 123.498% 0 0 0 0 0 12/31/05 5,574 5,574 0 0 123.498% 0 0 0 0 0 12/31/06 5,574 5,574 0 0 123.498% 0 0 0 0 0 12/31/07 31,650 5,574 7,958 18,118 123.498% 22,375 81 0 22,294 18,425 12/31/08 31,650 5,574 7,958 18,118 123.498% 22,375 81 0 22,294 17,382 12/31/09 31,650 5,574 7,958 18,118 123.498% 22,375 81 0 22,294 16,398 12/31/10 31,650 5,574 7,958 18,118 123.498% 22,375 81 0 22,294 15,470 12/31/11 31,650 5,574 7,958 18,118 123.498% 22,375 81 0 22,294 14,594 12/31/12 31,650 5,574 7,958 18,118 123.498% 22,375 81 0 22,294 13,768 12/31/13 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 29,128 12/31/14 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 27,480 12/31/15 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 25,924 12/31/16 64,050 5,574 17,846 40,630 1230498% 50,177 181 0 49,996 24,457 12/31/17 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 23,072 12/31/18 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 21,766 12/31/19 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 20,534 12/31/20 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 19,372 12/31/21 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 18,276 12/31/22 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 17,241 12/31/23 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 16,265 12/31/24 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 15,344 12/31/25 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 14,476 12/31/26 64,050 5,574 17,846 40,630 123.498% 50,177 181 0 49,996 13,657 12/31/27 0 0 0 0 123.498% 0 0 0 0 0 $836,728 $3,020 $0 $833,708 $383,029 SPRINGSTED Page 18 . . Exhibit IV. Estimated ImDact on Other Taxina Jurisdictions ReDort Golden Valley Housing & Redevelopment Authority, Minnesota Tax Increment Financing (Soils Condition) North Wirth District No.3 North Wirth Project Scenario A Without Project or TIF District With Project and TIF District Taxing Jurisdiction Projected Hypothetical 2003/2004 2003/2004 Retained New Hypothetical Hypothetical Tax Generated Taxable 2003/2004 Taxable Captured Taxable Adjusted Decrease In by Retained Net Tax Local Net Tax Net Tax Net Tax Local Local Captured Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*) ISD #270 23,662,480 45.445% 23,662,480 $40,630 23,703,110 45.367% 972,912,612 47.324% 972,912,612 40,630 972,953,242 47.322% 72,083,783 22.203% 72,083,783 40,630 72,124,413 22.190% 8.526% on 40,630 --- 8.526% - .-.... .........,.., 123.406% 0.078% 18,433 City of Golden Valley - Hennepin County 0.002% 19,227 0.013% 9,016 Other (2) * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate would decrease by 0.092% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax thanhe---- -- Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 6.90% of the total tax rate. SPRINGSTED Page 19 . Exhibit V Projected Pay-As-You-Go Note Report Golden Valley Housing & Redevelopment Authority, Minnesota Tax Increment Financing (Soils Condition) North Wirth District NO.3 North Wirth Project Scenario A Note Date: 06/01/04 Note Rate: 6.00% Amount: $375,800 Semi-Annual Loan Net capitalized Balance Date Principal Interest P& I Revenue Interest Outstanding (1 ) (2) (3) (4) (5) (6) (7) 375,800;00 02/01/05 0.00 0.00 0.00 0.00 15,032.00 390,832.00 08/01/05 0.00 0.00 0.00 0.00 11,724.96 402,556.96 02101/06 0.00 0.00 0.00 0.00 12,076.71 414,633.67 08/01/06 0.00 0.00 0.00 0.00 12,439.01 427,072.68 02101/07 0.00 0.00 0.00 0.00 12,812.18 439,884.86 08/01/07 0.00 11,147.00 11,147.00 11,147.00 2,049.55 441,934.41 02/01/08 0.00 11,147.00 11,147.00 11,147.00 2,111.03 444,045.44 08/01/08 0.00 11,147.00 11,147.00 11,147.00 2,174.36 446,219.80 02/01/09 0.00 11,147.00 11,147.00 11,147.00 2,239.59 448,459.39 08/01/09 0.00 11,147.00 11,147.00 11,147.00 2,306.78 450,766.17 . 02101/10 0.00 11,147.00 11,147.00 11,147.00 2,375.99 453,142.16 08/01/10 0.00 11,147.00 11,147.00 11,147.00 2,447.26 455,589.42 02101/11 0.00 11,147.00 11,147.00 11,147.00 2,520.68 458,110.10 08/01/11 0.00 11,147.00 11,147.00 11,147.00 2,596.30 460,706.40 02/01/12 0.00 11,147.00 11,147.00 11,147.00 2,674.19 463.380.59 08/01/12 0.00 11,147.00 11,147.00 11,147.00 2,754.42 4E16,135.01 02/01113 0.00 11,147.00 11,147.00 11,147.00 2,837.05 468,972.06 08/01/13 10,928.84 14,069.16 24,998.00 24,998.00 0.00 458,043.22 02101/14 11,256.70 13,741.30 24,998.00 24,998.00 0.00 446,786.52 08/01/14 11,594.40 13,403.60 24,998.00 24,998.00 0.00 435,192.12 02/01/15 11,942.24 13,055.76 24,998.00 24,998.00 0.00 423,249.88 08/01/15 12,300.50 12,697.50 24,998.00 24,998.00 0.00 410,949,38 02101/16 12,669.52 12,328.48 24,998.00 24,998.00 0.00 398,279.86 08/01/16 13,049.60 11,948.40 24,998.00 24,998.00 0.00 385,230.26 02101/17 13,441.09 11,556.91 24,998.00 24,998.00 0.00 371,789.17 08/01117 13,844.32 11,153.68 24,998.00 24,998.00 0.00 357,944.85 02101/18 14,259.65 10,738.35 24,998.00 24,998.00 0.00 343,685.20 08/01/18 14,687.44 10,310.56 24,998.00 24,998.00 0.00 328,997.76 02101/19 15,128.07 9,869.93 24,998.00 24,998.00 0.00 313,869.69 08/01/19 15,581.91 9,416.09 24,998.00 24,998.00 0.00 298,287.78 02101/20 16,049.37 8,948.63 24,998.00 24,998.00 0.00 282,238.41 08/01/20 16,530.85 8,467.15 24,998.00 24,998.00 0.00 265,707.56 02101/21 17,026.77 7,971.23 24,998.00 24,998.00 0.00 248,680.79 08101/21 17,537.58 7,460.42 24,998.00 24,998.00 0.00 231,143.21 02/01/22 18,063.70 6,934.30 24,998.00 24,998.00 0.00 213,079.51 08/01/22 18,605.61 6,392.39 24,998.00 24,998.00 0.00 194,473.90 02101/23 19,163.78 5,834.22 24,998.00 24,998.00 0.00 175,310.12 08/01/23 19,738.70 5,259.30 24,998.00 24,998.00 0.00 155,571.42 02/01/24 20,330.86 4,667.14 24,998.00 24,998.00 0.00 135,240.56 08101/24 20,940.78 4,057.22 24,998.00 24,998.00 0.00 114,299.78 . 02101/25 21,569.01 3,428.99 24,998.00 24,998.00 0.00 92,730.77 08/01/25 22,216.08 2,781.92 24,998.00 24,998.00 0.00 70,514.69 02/01/26 22,882.56 2,115.44 24,998.00 24,998.00 0.00 47,632.13 08/01/26 23,569.04 1,428.96 24,998.00 24,998.00 0.00 24,063.09 02/01/27 24,063.09 721.89 24,784.98 24,784.98 0.00 0.00 08101/27 0.00 0.00 0.00 0.00 0.00 0.00 $468,972 $364,522.92 $833,494.98 $833,494.98 $93,172.06 Surplus Tax Increment 213.02 Total Net Revenue $833,708.00 SPRINGSTED Page 20 . Exhibit VI Market Value Analysis Report I Golden Valley Housing & Redevelopment Authority, Minnesota Tax Increment Financing (Soils Condition) North Wirth District No.3 North Wirth Project Scenario A . Assumptions I Present Value Date 06/01/04 P.V. Rate - Gross T.I. 6.00% I Increase in EMV With TIF District $3,240,000 Less: P.V of Gross Tax Increment 383,029 Subtotal $2,856,971 Less: Increase in EMV Without TIF I 0 Difference $2,8 6,971 Annual Present Gross Tax Value @ Year Increment 6.00% 1 2006 0 0 2 2007 22,375 18,425 3 2008 22,375 17,382 4 2009 22,375 16,398 5 2010 22,375 15,470 6 2011 22,375 14,594 7 2012 22,375 13,768 8 2013 50,177 29,128 9 2014 50,177 27,480 10 2015 50,177 25,924 11 2016 50,177 24,457 12 2017 50,177 23,072 13 2018 50,177 21,766 14 2019 50,177 20,534 15 2020 50,177 19,372 16 2021 50,177 18,276 17 2022 50,177 17,241 18 2023 50,177 16,265 19 2024 50,177 15,344 20 2025 50,177 14,476 21 2026 50,177 13,657 22 2027 0 0 $836,728 $383,029 . SPRINGSTED Page 21 . , . ~ Ie.. Hey Planning 763-593-8095/763-593-8109 (fax) Date: May 18, 2004 To: Planning Commission From: Mark W. Grimes, Director of Planning and Development Subject: City Tour, Planning Commissioner Training and Box Lunch At the last Planning Comrnission meeting, it was decided thatthe May 24 meeting would be a good opportunity to get together as a Commission for the purpose of training and taking a group tour of the City. As discussed, we will begin at City Hall at 6 PM with a box lunch. At that time, we will be able to discuss upcoming issues related to the Commission and City along with "continuing education" for the Commission. After eating and discussion, we will load into a van for a tour of the City that will highlight past and future areas of concern and opportunity.