HomeMy WebLinkAboutHRA Item 03April 17, 2017 - HRA Meeting Item No.________
RESOLUTION APPROVING AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT
NO. 22 WITHIN THE AIRLAKE REDEVELOPMENT PROJECT AREA NO.1 AND
APPROVING A TAX INCREMENT FINANCING PLAN
Proposed Action
Staff recommends adoption of the following motion: Move to adopt a resolution approving the
establishment of Tax Increment Financing District No. 22 within Airlake Redevelopment Project No. 1
and approving the Tax Increment Financing Plan for the Launch Properties Project.
Overview
Launch Properties has submitted an application for Tax Increment Financing (TIF). The proposed project
is a 286,000 square foot multi-tenant warehouse office. Launch has an agreement to lease warehouse
space to Menasha Packaging. Menasha Packaging is one of the largest retail-focused packaging and
merchandising solutions provider in the country and has operated in Lakeville since 1970. The company
completed a 120,000 square foot expansion of its manufacturing plant at 8085 220th Street in 2014. This
project is proposed to be located on a 18.87 acre site in the new Launch Park First Addition located east of
Cedar Avenue and south of the proposed new 222nd Street (see attached site plan.) Launch Properties has
an agreement to lease 150,000 square feet of this building to Menasha Packaging.
The project will result in the retention of 70 new jobs in Lakeville that Menasha recently transferred from
a manufacturing facility in Brooklyn Park the company closed in 2016. Menasha will also create an
additional nine new warehouse jobs when this project is completed. The average wage for the 70 new
retained jobs and nine new warehouse jobs is $20.50 plus 46% for benefits. The total amount of TIF
eligible costs for this project is $2,964,000 and the total project cost of $17,670.000. The recommended
level of TIF assistance for this project is $1,000,000. This project is anticipated to be the catalyst for future
projects on adjacent parcels east of Cedar Avenue.
The EDC reviewed the proposed creation of this TIF District at their February 22nd meeting and
recommended approval. The City Council discussed this request for TIF assistance at a February 27th
Work Session. Staff recommends approval of the proposed creation of TIF District No. 22. A copy of the
proposed TIF Plan was submitted to Dakota County and Farmington School District No.192 for review
and comment.
Primary Issues to Consider
• Is this request for TIF assistance consistent with the City’s policies? The request is consistent
with the City’s TIF and Business Subsidy Policies.
Supporting Information
• HRA Resolution, Proposed TIF Plan as prepared by Springsted Inc.
Financial Impact: $_$1,000,000 Budgeted:Y/N__N___Source:_Captured Tax Increments
Envision Lakeville Community Value: Diversified Economic Development
Report Completed by: David L. Olson, Community & Economic Development Director
HOUSING AND REDEVELOPMENT AUTHORITY FOR THE CITY OF
LAKEVILLE, MINNESOTA
RESOLUTION NO. _____________
RESOLUTION APPROVING THE
ESTABLISHMENT OF A TAX INCREMENT FINANCING DISTRICT WITHIN AIRLAKE
REDEVELOPMENT PROJECT NO. 1 AND
APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR
A. WHEREAS, the Housing and Redevelopment Authority for the City of Lakeville
("Authority") and the City of Lakeville, Minnesota (the "City") have adopted a Redevelopment
Plan (the "Redevelopment Plan") and established the Airlake Redevelopment Project Area and
created Tax Increment Financing Districts within the Airlake Redevelopment Project Area and
adopted Tax Increment Financing Plans with respect to these Tax Increment Districts pursuant to
Chapter 469 of the Minnesota Statutes in an effort to encourage development and redevelopment
of certain designated areas within the City, which Redevelopment Plan, plans and districts have
been amended from time to time; and
B. WHEREAS, it has been proposed that the City establish Tax Increment Financing
(Economic Development) District No. 22 ("TIF District No. 22") as an economic development
district and adopt a Tax Increment Financing Plan therefor (the "TIF Plan").
C. WHEREAS, on February 27, 2017, the Authority authorized the City to
undertake, on the Authority’s behalf, all of the public development activities in connection with
the development of the Developer’s proposal, including the administration of tax increment as
accounted for in the City’s financial statements; and
D. WHEREAS, the Authority has investigated the facts and have caused the TIF
Plan to be prepared and has performed all actions required by law to be performed prior to the
approval of the TIF Plan; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Authority that the TIF Plan for TIF District No. 22 is hereby approved.
Adopted this 17th day of April, 2017.
_________________________
Chair
Attest: ________________________
Secretary
LAUNCH PARK PRELIMINARY PLAT
Property Information
Febru ary 28, 2017
0 875 1,750437.5 ft
0 270 540135 m
1:9,600
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.
C.S.A.H. NO. 23 (CEDAR AVENUE)222ND STREET W80.080.040.0R50.0PROPOSED 286,000 SF WAREHOUSE/ OFFICELEGENDPROPERTY LINESETBACK LINEEASEMENT LINERIGHT-OF-WAY LINELOT SUBDIVISION LINESHEET NUMBER 2017 KIMLEY-HORN AND ASSOCIATES, INC.
2550 UNIVERSITY AVENUE WEST, SUITE 238N, ST. PAUL, MN 55114
PHONE: 651-645-4197
WWW.KIMLEY-HORN.COM
ISSUED FOR PERMIT - NOT FOR CONSTRUCTION
LAKEVILLE, MN
PERMIT SET - NOT FOR CONSTRUCTION NORTHEXISTING LEGAL DESCRIPTIONTHAT PART OF SECTION 3, TOWNSHIP 113, RANGE 20 DESCRIBED ASFOLLOWS:THE NORTHWEST QUARTER OF SAID SECTION 3, LYING NORTH OF THESOUTH 1000.00 FEET THEREOF.PROPERTY SUMMARYACRESLOT 1, BLOCK 118.87 ACLOT 2, BLOCK 120.05 ACPUBLIC DEDICATION5.64 ACTOTAL44.56 ACEXISTING PROPERTY ZONINGI-2 GENERAL INDUSTRIALDISTRICTPROPOSED PROPERTY ZONINGI-2 GENERAL INDUSTRIALDISTRICTOWNER/SUBDIVIDER:HAT TRICK INVESTMENTS, LLC1875 HWY 36, WEST SUITE 200ROSEVILLE, MN 55113(612) 564-4070ENGINEER:KIMLEY-HORN AND ASSOCIATES, INC.PREPARED BY: WILL MATZEK, PE #457902550 UNIVERSITY AVE W, SUITE 238 NST. PAUL, MN 55114TELEPHONE (651) 645-4197SURVEYOR:EGAN, FIELD & NOWAK, INC.1229 TYLER STREET NE, SUITE 100MINNEAPOLIS, MN 55413BRENT PETERSTELEPHONE (612) 466-3300NOTES:1. THE NORTH LINE OF THE NORTHWEST QUARTER OFSECTION 3, TOWNSHIP 113, RANGE 20, IS ASSUMED TO BEARSOUTH 89 DEGREES 58 MINUTES 28 SECONDS EAST.2. REFER TO GRADING PLAN FOR TYPICAL SECTION ANDCENTERLINE GRADIENTS.PROPOSED LEGAL DESCRIPTIONLOT 1 BLOCK 1 LAUNCH PARK FIRST ADDITIONLOT 2 BLOCK 1 LAUNCH PARK FIRST ADDITIONPRELIMINARY PLAT
LAUNCH PARK FIRST
ADDITION
PRELIMINARY
City of Lakeville, Minnesota
Housing and Redevelopment Authority for the City of Lakeville
Tax Increment Financing Plan
for
Tax Increment Financing (Economic Development)
District No. 22
Within
Airlake Redevelopment Project No. 1
(Launch Park Project)
Draft Dated: April 17, 2017
Public Hearing Scheduled: April 17, 2017
Anticipated Approval Date: April 17, 2017
Prepared by:
SPRINGSTED INCORPORATED
380 Jackson Street, Suite 300
St. Paul, MN 55101-2887
(651) 223-3000
WWW.SPRINGSTED.COM
TABLE OF CONTENTS
PART I
LAKEVILLE
AIRLAKE REDEVELOPMENT PLAN
I. INTRODUCTION AND LEGAL BASIS
A. Statement of Intent of Modification ...................................................................................... 1
B. Statement of Public Purpose .............................................................................................. 1
C. Project Area Boundary ..................................................................................................... 1
D. Statement of Authority ...................................................................................................... 1
II. REDEVELOPMENT PROJECT
A. Redevelopment Plan Objectives ......................................................................................... 1
B. Land Use ....................................................................................................................... 2
C. Development Standards ................................................................................................... 2
D. Environmental Controls .................................................................................................... 2
E. Redevelopment Activities .................................................................................................. 3
1. City Activities -Original Plan
2. City Activities - Plan Modification
3. Private Activities - Original Plan
F. Project Cost Estimates ..................................................................................................... 3
G. Relocation ..................................................................................................................... 3
H. Development Contracts .................................................................................................... 3
I. Operation of Public Improvements ...................................................................................... 4
J. Administriation of Project .................................................................................................. 4
K. Modification Plan ............................................................................................................. 4
PART I ............................................................................................................................................................... EXHIBIT I
TABLE OF CONTENTS
(Continued)
PART II
TAX INCREMENT FINANCING PLAN NO. 22
Section Page(s)
A. Definitions ..................................................................................................................... 5
B. Statutory Authorization ..................................................................................................... 5
C. Statement of Need and Public Purpose ................................................................................ 5
D. Statement of Objectives .................................................................................................... 5
E. Designation of Tax Increment Financing District as an Economic Development District .................... 6
F. Duration of the TIF District ................................................................................................. 6
G. Property to be Included in the TIF District.............................................................................. 6
H. Property to be Acquired in the TIF District ............................................................................. 7
I. Specific Development Expected to Occur Within the TIF District ................................................. 7
J. Findings and Need for Tax Increment Financing ..................................................................... 7
K. Estimated Public Costs ..................................................................................................... 9
L. Estimated Sources of Revenue .......................................................................................... 9
M. Estimated Amount of Bonded Indebtedness ........................................................................ 10
N. Original Net Tax Capacity ............................................................................................... 10
O. Original Tax Capacity Rate .............................................................................................. 10
P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ............................. 11
Q. Use of Tax Increment ..................................................................................................... 11
R. Excess Tax Increment .................................................................................................... 12
S. Tax Increment Pooling and the Five Year Rule ..................................................................... 12
T. Limitation on Administrative Expenses ............................................................................... 13
U. Limitation on Property Not Subject to Improvements - Four Year Rule ....................................... 13
V. Estimated Impact on Other Taxing Jurisdictions ................................................................... 14
W. Prior Planned Improvements ............................................................................................ 14
X. Development Agreements ............................................................................................... 15
Y. Assessment Agreements ................................................................................................ 15
Z. Modifications of the Tax Increment Financing Plan ................................................................ 15
AA. Administration of the Tax Increment Financing Plan .............................................................. 15
AB. Financial Reporting and Disclosure Requirements ................................................................ 16
Map of the Tax Increment Financing District within Redevelopment Project Area .............................. EXHIBIT I
Assumptions Report ........................................................................................................................... EXHIBIT II
Projected Tax Increment Report ......................................................................................................... EXHIBIT III
Estimated Impact on Other Taxing Jurisdictions Report...................................................................... EXHIBIT IV
Market Value Analysis Report ............................................................................................................. EXHIBIT V
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 1
PART I
REDEVELOPMENT PLAN FOR
AIRLAKE REDEVELOPMENT PROJECT
I. INTRODUCTION AND LEGAL BASIS
Section A Statement of Intent
The City proposes to implement the plan objective listed in Section II.A.3 of the Original Redevelopment Plan
approved by the Authority and Council in 1984. The activity objective primarily includes the expansion of the
development objectives of the Project Area to include the proposed Launch Park Project TIF 22 as well as certain
Airlake public improvements.
Section B Statement of Public Purpose
No Change
The Authority and Council find that there is a need to provide impetus for private development, maintain and increase
employment, and to increase tax base for the taxing jurisdiction within the City’s corporate limits. These public
purpose goals are not attainable in the foreseeable future without the intervention of the Authority and City in the
normal development process.
Section C Project Area Boundary
The boundaries of the Project Area are not being modified with the creation of the proposed Tax Increment Financing
District No. 22. The proposed addition of the new development is within the current Project Area boundaries to
further meet the City’s Redevelopment Plan objectives. The boundaries of the Project area are shown in Exhibit “I”
“Project Area Boundary Map”. All land included in the Project Area is within the legal boundaries of the City.
Section D Statement of Authority
No Change
The Authority is authorized to create and modify a project pursuant to Minnesota Statutes Sections 469.001 to
469.047 (the HRA Act) within boundaries of municipalities. The project as contemplated by this Plan consists of a
Redevelopment Project in the HRA Act, pursuant to Section 469.002, Subdivision 14 and Minnesota Statutes, Section
469.028, Subdivision 3.
II. REDEVELOPMENT PROJECT
Section A Redevelopment Plan Objectives
No Change
The Authority and City, through the implementation of this Plan, seek to achieve the following objectives:
1. To provide logical and organized land use for the Project Area consistent with the Comprehensive Land Use
Plan and the zoning ordinance of the City.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
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2. To promote the prompt development of property in the Project Area with a minimal adverse impact on the
environment
3. To provide adequate streets, utilities, and other public improvements and facilities to enhance the Project
Area and the City for new and existing development.
4. To enhance the Project Area and the City and surrounding area by retaining current, and providing additional
employment opportunities for the residents of the City and surrounding community.
5. To increase the City’s tax base.
6. To afford existing business in the City the opportunity to expand or relocate within the Project Area.
7. To stimulate development and investment within the project Area by private interest by providing land of
suitable size and configuration to permit its economic and appropriate development.
Section B Land Use
No Change
1. Current use:
a. The project is partially vacant and undeveloped and used for both industrial and farming purposes.
The Area is principally Zoned I-1 and I-2, which provides for the establishment of warehousing, light
and heavy industrial and manufacturing development.
2. Future Land Use:
a. It is anticipated that the Project Area will develop consistent with existing zoning districts. The uses
of the Project Area proposed are consistent with the Plan, the Lakeville Comprehensive Plan, and,
to the knowledge of the City and Authority at this time, all other federal state and local laws and
regulation.
Section C Development Standards
The Authority and City will consider, among other things, the following factors when evaluating development
proposals in all phases:
1. Degree to which development objectives are provided for or enhanced.
2. Consistency with this Plan and the Lakeville Comprehensive Plan.
3. Ability of proposed tax increment projects to generate enough annual tax increment to retire the debt created
by the project.
4. Developer’s ability to perform both from a standpoint of financial ability to perform and the necessary
experience and expertise to complete the proposed development.
5. Displaced Project Area property owners and tenants will be given priority over competing projects of similar
scale and magnitude.
Section D Environmental Controls
It is presently anticipated that the proposed development in the Project Area will not present major environment
problems. All municipal actions, public improvements, and private development will be carried out in a manner that
will comply with applicable environmental standards. Then environmental controls to be applied within the Area are
contained within the codes an ordinance of the City of Lakeville.
The Minnesota Code of Agency Rules (6 MCAR 3.021-3.056) defines Minnesota’s environmental policy. The
threshold factor for the industrial/commercial projects on second class cities is 1,000,000 square feet (gross floor
area). Projects above this threshold would require an Environmental Impact Statement. There are no properties on
the National Historic Register of Historic Places within the Project Area.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 3
Section E Redevelopment Activities
The Authority and the City proposes to implement this plan in phases. The activities of this Plan are described as
follows:
1. City Activities – Original Plan
a. To acquire the land from the current owners and dedicate the land to an acceptable developer for
the purposes of constructing a 150,000 square foot office, warehouse and manufacturing facility.
2. City Activities – Plan Modifications
a. A full discussion of the proposed City Activities can be found in Tax Increment District No. 4, 13, 14,
15, 16, 17, 18, 19, 20, 21 and 22 Plans prepared by the City’s consultant(s) and is hereby adopted
by reference.
3. Private Activities – Original and Modified Plan
a. Phase One (TIF# 4) included a major private development project – Please see TIF #4 Plan.
b. Phase Two (TIF #13) included a major private development project - Please see TIF #13 Plan.
c. Phase Three (TIF #14) included a major private development project – Please see TIF #14 Plan.
d. Phase Four (TIF #15) included a major private development project – Please see TIF #15 Plan.
e. Phase Five (TIF #16) included a major private development project. – Please see TIF #16 Plan.
f. Phase Six (TIF #17) – Please see TIF #17 Plan
g. Phase Seven (TIF #18) – Please see TIF # 18 Plan
h. Phase Eight (TIF #19) – Please see TIF # 19 Plan
i. Phase Nine (TIF #20) – Please see TIF #20 Plan
j. Phase Ten (TIF #21) – Please see TIF #21 Plan
k. Phase Eleven (TIF #22) – Please see TIF #22 Plan
Section F Project Cost Estimates
A full description of project costs is provided in Tax Increment Financing District No. 22 project budget.
Section G Relocation
No Change
Phase One of the Plan requires no relocation. In subsequent phases where development proposals require the
acquisition of either commercial, industrial or residentially occupied parcels of land, the displaced party or parties shall
be eligible for and receive those relocation benefits in conformance with the Minnesota Uniform Relocation Act.
Minnesota Statutes, Section 117.50-56. The current phase does not require relocation.
The relocation plan, if applicable, will be part of any tax increment financing plan that provides for acquisition and
subsequent displacement.
Section H Development Contracts
No Change
The City and Authority will not authorize any public improvement or facilities projects nor acquire any property for
development which will be wholly or partially funded by the use of tax increment financing without first having secured
development contracts.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 4
The Development Contracts shall require the developer to among other things, cause to be constructed an industrial
facility of at least a specified minimum cost, and having a specified minimum Assessor’s Market Value; to complete
the work by a specified date pursuant to plans and specifications submitted to and building permits issued by or on
behalf of the City, and pursuant to an and in accordance with all other applicable governmental regulations; and to
demonstrate its financial capability for doing so.
Section I Operation of Public Improvements
No Change
All public improvements constructed under the provisions of this program shall be operated by the City of Lakeville in
the same manner as all publicly owned streets and utilities.
Section J Administration of Project
No Change
The Lakeville Housing Authority shall be responsible for seeing that contents of this plan are promoted, implemented
and enforced. The Executive Director shall be delegated day by day responsibilities while the Board of Directors shall
make all policy regarding the Project Area. Administrative maintenance activities will be funded out of tax increment
revenue and other HRA funds.
Section K Modification of Plan
No Change
Modifications or revisions of this Plan which change the permitted uses; modify the Project Area Boundary; set forth,
revise, or modify any Developers Contract with respect to any part of the Project or terminate all or any part of the
Project require approval of such modifications by the Authority and the City, upon notice and other public hearing as
required for the adoption of this Plan and in accordance with Section 469.029, Subdivision 6 of the Act.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 5
PART II
TAX INCREMENT FINANCING PLAN NO. 22
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 Housing and Redevelopment Authority for the City of Lakeville.
"City" means the City of Lakeville, Minnesota; also referred to as a "Municipality".
"City Council" means the City Council of the City; also referred to as the "Governing Body".
"County" means Dakota County, Minnesota
"Redevelopment Project Area" means Airlake Redevelopment Project No. 1 in the City, which is described in the
corresponding Redevelopment Plan.
"Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project Area.
"Project Area" means the geographic area of the Redevelopment Project Area.
"School District" means Independent School District No. 192, Minnesota.
"State" means the State of Minnesota.
"TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive.
"TIF District" means Tax Increment Financing (Economic Development) District No. 22.
"TIF Plan" means the tax increment financing plan for the TIF District (this document).
Section B Statutory Authorization
See Section I.D. of the Redevelopment Plan for the Redevelopment Project Area.
Section C Statement of Need and Public Purpose
See Section I.A and I.B of the Redevelopment Plan for the Redevelopment Project Area.
Section D Statement of Objectives
See Section II.A of the Redevelopment Plan for the Redevelopment Project Area.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 6
Section E Designation of Tax Increment Financing District as an
Economic Development District
Economic development districts are a type of tax increment financing district which consist of any project, or portions
of a project, which the City finds to be in the public interest because:
(1) it will discourage commerce, industry, or manufacturing from moving their operations to
another state or municipality;
(2) it will result in increased employment in the state; or
(3) it will result in preservation and enhancement of the tax base of the state.
The TIF District qualifies as an economic development district in that the proposed development described in this TIF
Plan (see Section I) meets the criteria listed above in (2) and (3). Without establishment of the TIF District, the
proposed development would not occur within the City. The proposed development will also result in increased
employment and enhancement of the tax base in both the City and the State.
Tax increments from an economic development district must be used to provide improvements, loans, subsidies,
grants, interest rate subsidies, or other assistance in which at least 85% of the square footage of the facilities to be
constructed are used for any of the following purposes:
(1) manufacturing or production of tangible personal property, including processing resulting in the
change of the condition of the property;
(2) warehousing, storage and distribution of tangible personal property, excluding retail sales;
(3) research and development related to the activities listed in (1) or (2) above;
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities (see M.S. Section 469.174, Subd. 22);
(6) space necessary for and related to the activities listed in (1) through (5) above.
Section F Duration of the TIF District
Economic development districts may remain in existence 8 years from the date of receipt by the City of the first tax
increment. The City anticipates that the TIF District will remain in existence the maximum duration allowed by law
(projected to be through the year 2027, assuming first increment is received in 2019). The district will remain open
through the year 2028 if the first collection of increment is in taxes payable 2020. The City may decertify the TIF
District earlier if fulfillment of all District obligations occurs prior to the statutory maximum duration of 9 total years.
Section G Property to be Included in the TIF District
The TIF District is an approximate 18.87-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:
Parcel ID Number Legal Description
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 7
22 00310 25 011 * SECTION 3 TWN 113 RANGE 20
* the parcel is in the process of being split and replatted so only a portion of the original parcel (approximately 18.87
acres) will be included within the boundaries of the TIF District. It is anticipated that the City Council will approve the
final plat at the April 17, 2017 Council meeting and the new legal description for the 18.87-acre parcel will be Lot 1,
Block 1, Launch Park First 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 City may acquire and sell any or all of the property located within the TIF District; however, the City does not
anticipate acquiring any such property at this time.
Section I Specific Development Expected to Occur Within the TIF District
The proposed development is expected to consist of an approximate 286,000 square foot multi-tenant industrial
building. The building will feature thirty-two foot interior clear height from floor slab to joists, which is an important
criteria most occupants desire today and cannot find in older obsolete buildings. A 331-space parking lot will be on
the front and sides of the building, isolated from truck traffic. Truck traffic, loading, and storage will be contained in a
fully paved truck court on the rear of the building, out of site from the public right-of-way in front of the building. The
building will be composed of insulated Fabcon panels, glass, and aluminum composite metal panels.
Menasha Packaging is the industry’s largest independent, retail-focused packaging and merchandising solutions
provider. Menasha has operated in Lakeville since 1970 and currently has over 220 employees. This project will
accommodate Menasha’s relocation of business machines and manufacturing functions from their warehouse in
Brooklyn Park to Lakeville. The project will result in Menasha’s 75 new jobs coming to Lakeville. Additionally, with
this potential consolidation within Lakeville, Menasha’s long-term occupancy will be further solidified across both
locations; at this new project and their existing manufacturing building on 220th St W. Average pay per employee is
$20.50 per hour plus 46% for benefits and is in compliance with City policy and statutory requirements.
Menasha Packaging will only take a portion of the building and the remaining space is currently being solicited for
occupancy. It is anticipated tax increment will be used to finance a portion of the extraordinary site development and
infrastructure costs deemed necessary for the project to proceed. In addition, the City anticipates using available tax
increment for related administrative expenses and any other eligible expenditures associated with the development of
the site.
Construction of the facility is projected to commence in 2017 and expected to be fully constructed by December 31,
2017, and be 100% assessed and on the tax rolls as of January 2, 2018 for taxes payable in 2019.
At the time this document was prepared there were no signed construction contracts with regards to the above
described development.
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 as an economic development district;
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 8
See Section E of this document for the reasons and facts supporting this finding.
(2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future, and 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.
Factual basis:
Proposed development not expected to occur:
The project includes the development of an approximate 286,000 square foot industrial building. The
proposed developer of the site has submitted information to the city demonstrating that the development of
this site is not financially feasible without the assistance provided in this TIF Plan.
The City has determined that the proposed development would not occur but for the financial assistance
provided in this TIF Plan because of the high cost of construction at the site due to the need for significant
site development and public improvement infrastructure costs necessary for development to occur. The
extension of a road will also be required to serve the development. Due to the high costs of investment for
the proposed project, including site improvements, infrastructure, machinery & equipment and development
costs incurred by the developer in conjunction with development of the project, the developer has stated that
the project as proposed would not occur without the financial assistance provided by the City, as it would not
be economically feasible without financial assistance. The City finds the use of tax increment necessary to
finance a portion of the site improvements costs to facilitate development of the project and developer
investment. The City anticipates providing financial assistance on a pay-as-you-go basis.
No higher market value expected:
The increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing 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. Without improvements the City has no reason to expect that
significant development would occur without assistance similar to that provided in this plan. For the same
reasons that the desired development described above is not feasible without tax increment assistance, the
City believes that no alternative development is likely to occur without similar assistance.
To summarize the basis for the City’s findings regarding alternative market value, in accordance with
Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations:
a. The City’s estimate of the amount by which the market value of the site will increase without the
use of tax increment financing is $0 (for the reasons described above), except some unknown
amount of appreciation.
b. If the proposed development to be assisted with tax increment occurs in the District, the
total increase in market value would be approximately $14,690,657, including the value of the
building (See Exhibit V).
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 $1,441,748 (See Exhibit V).
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 9
d. Even if some development other than the proposed development were to occur, the City
finds that no alternative would occur that would produce a market value increase greater than
$13,248,909 (the amount in clause b less the amount in clause c) without tax increment assistance.
(3) The TIF Plan would afford maximum opportunity, consistent with the sound needs of the City as a
whole, for development of the Project Area by private enterprise.
Factual basis: The proposed development is the construction of a new industrial facility in the Project Area
that is proposed to create new jobs in the City, while creating these jobs in the State, plus create new tax
base for the City and the State. The development meets the City’s economic development goals in terms of
tax base expansion, job retention and creation, and wage levels.
(4) The TIF Plan conforms to general plans for development of the City as a whole.
Factual basis: The City Planning Commission has determined that the development as described in the
TIF Plan conforms to the City comprehensive plan.
Section K Estimated Public Costs
The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax
increments of the TIF District.
Land/building acquisition 0
Utilities 0
Other qualifying improvements 1,748,704
Loan Interest payments 0
Administrative expenses 92,036
Total $1,840,740
The City anticipates using tax increment to the extent available to assist with financing a portion of the site
improvement and infrastructure costs, related administrative expenses, and other TIF-eligible expenditures as
necessary and related to development of the project.
The City 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 ($1,840,740) is not increased. The City also
reserves the right to fund any of the identified costs with any other legally available revenues, such as grants and/or
loans, but anticipates that such costs will be primarily financed with tax increments.
Section L Estimated Sources of Revenue
Tax increment revenue 1,840,740
Interest on invested funds 0
Loan proceeds 0
Special assessments 0
Rent/lease revenue 0
Grants 0
Total $1,840,740
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 10
The City anticipates providing financial assistance on a pay-as-you-go basis for site improvement costs, as well as
other TIF-eligible expenses related to the proposed development. As tax increments are collected from the TIF
District in future years, a portion of these taxes will be used by the City to reimburse the developer/owner for public
costs incurred (see Section K).
The City 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 City
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.
The projected tax increment report is included as Exhibit III.
Section M Estimated Amount of Bonded Indebtedness
The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from
the TIF District is $1,840,740. The City currently plans to finance the improvement costs in the form of a pay-as-you
go revenue note, but reserves the right to issue bonds in any form, including without limitation any interfund loan with
interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act.
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.
The Estimated Market Value of all property within the TIF District as of January 2, 2016, for taxes payable in 2017, is
$130,553 and the estimated tax capacity is $1,958, which is estimated to be the original net tax capacity of the TIF
District upon establishment of the District, replatting of the property to include a portion within the District,
reclassification from non-homestead to commercial-industrial and subsequent certification.
Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as
a result of:
(1) changes in the tax-exempt status of property;
(2) reductions or enlargements of the geographic area of the TIF District;
(3) changes due to stipulation agreements or abatements; or
(4) changes in property classification rates.
Section O 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 TIF District.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 11
It is anticipated the request for certification of the District will occur prior to June 30, 2017 and the local tax rates for
taxes levied in 2016 and payable in 2017 will apply. For purposes of estimating the tax increment generated by the
TIF District, the sum of the local tax rates for taxes levied in 2016 and payable in 2017, is 124.690% as shown below.
2016/2017
Taxing Jurisdiction Local Tax Rate
City of Lakeville 37.510%
Dakota County 28.004%
ISD #192 54.269%
Other 4.907%
Total 124.690%
Section P Projected Retained Captured Net Tax Capacity and
Projected Tax Increment
The City anticipates that the project will begin construction in 2017 and be fully completed by December 31, 2017,
creating a total tax capacity for TIF District No. 22 of $233,250 as of January 2, 2018. The captured tax capacity as
of that date is estimated to be $145,644. The first year of tax increment is estimated to be $181,603 payable in 2019.
A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III.
The estimates shown in this TIF plan assume that commercial class rates remain at 1.5% of the estimated market
value up to $150,000 and 2.0% of the estimated market value over $150,000, and assume 3% annual increases in
market values.
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.
The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose
to retain any or all of this amount. It is the City'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 TIF District.
Exhibit II gives a listing of the various information and assumptions used in 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.
Section Q Use of Tax Increment
Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay
such amount to the State's General Fund. Such amounts 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.
The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of
the following purposes:
(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);
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 12
(2) pay principal and interest on one or more pay-as-you-go notes, 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 1a; 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 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 City 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:
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 13
(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 TIF 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 TIF 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.
The City anticipates there may be allowable pooling expenditures made outside of the TIF District and within the
Project Area (along with allowable administrative expenses), and such expenditures are expressly authorized in this
TIF Plan.
Section T Limitation on Administrative Expenses
Administrative expenses are defined as all costs of the City other than:
(1) amounts paid for the purchase of land;
(2) amounts paid for materials and services, including architectural and engineering services directly
connected with the physical development of the real property in the project;
(3) relocation benefits paid to, or services provided for, persons residing or businesses located in the
project;
(4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to section 469.178; or
(5) amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in clause (1) to (3).
Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or
economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax
increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax
increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the TIF District.
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 City 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.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 14
If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the
above activities, the City 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 TIF
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 City 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 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.
The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota
Statutes, Section 469.175, Subdivision 2, are listed below.
1. The total amount of tax increment that will be generated over the life of the district is estimated to be
$1,847,391.
2. To the extent the facility in the proposed TIF District generates any public cost impacts on city-provided
services such as police and fire protection, public infrastructure, and borrowing costs attributable to the
district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured
by the District. The City does not anticipate issuing tax increment revenue bonds in conjunction with this
project but reserves the right to issue bonds as necessary to facilitate development.
3. The amount of tax increments over the life of the district that would be attributable to school district levies,
assuming the school district’s share of the total local tax rate for all taxing jurisdictions remained the same, is
estimated to be $804,043.
4. The amount of tax increments over the life of the district that would be attributable to county levies,
assuming the county’s share of the total local tax rate for all taxing jurisdictions remained the same is
estimated to be $414,904.
5. The amount of tax increments over the life of the district that would be attributable to city levies, assuming
the city’s share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be
$555,743.
6. No additional information has been requested by the county or school district that would enable it to
determine additional costs that will accrue to it due to the development proposed for the district.
Section W Prior Planned Improvements
The City 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.
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 15
Section X Development Agreements
If within a project containing an economic development district, more than 10% of the acreage of the property to be
acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is
pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property.
Such agreement must provide recourse for the City should the development not be completed.
The City anticipates entering into an agreement for development, but does not anticipate acquiring any property
located within the TIF District.
Section Y Assessment Agreements
The City 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 City does not anticipate entering into an assessment agreement to establish a minimum market value of the land
and improvements within the TIF District.
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 City; increase in the total estimated public costs; or designation of
additional property to be acquired by the City shall be approved only after satisfying all the necessary requirements
for approval of the original TIF Plan. This paragraph does not apply if:
(1) the only modification is elimination of parcels from the TIF District; and
(2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of
those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's
original net tax capacity will be reduced by no more than the current net tax capacity of the parcels
eliminated.
The City 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 District 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 City shall submit a copy of such plan to the Minnesota Department of Revenue.
The City shall also request that the County 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 City shall submit copies of the TIF Plan, the resolution
Housing and Redevelopment Authority for the City of Lakeville and City of
Lakeville, Minnesota
SPRINGSTED Page 16
establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City
shall also send the County Assessor any assessment agreement establishing the minimum market value of land and
improvements in the TIF District, and shall request that the County Assessor review and certify this assessment
agreement as reasonable.
The County shall distribute to the City the amount of tax increment 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 City shall notify the County Assessor of any new development that has occurred
in the TIF 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 TIF District. The reverse shall also apply;
(b) the original net tax capacity may be modified by any approved enlargement or reduction of
the TIF District;
(c) 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 City of all changes made to the original net tax capacity of the TIF District.
Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements
The City will file the TIF Plan, and any subsequent amendments thereto, with the Commissioner of Revenue and the
Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The City will comply
with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6.
Exhibit I SPRINGSTED Page 17 Map of Tax Increment Financing (Economic Development) District No. 22 Within Airlake Redevelopment Project No. 1
Exhibit II
SPRINGSTED Page 18
Assumptions Report
City of Lakeville, Minnesota
Tax Increment Financing (Economic Development) District No. 22
Proposed Launch Park Project (286,000 SF Bldg)
Draft TIF Plan Exhibits: $11.7M EMV with 3% MV Inflator
Type of Tax Increment Financing District Economic Development
Maximum Duration of TIF District 8 years from 1st increment
Projected Certification Request Date 06/30/17
Decertification Date 12/31/27 (9 Years of Increment)
2016/2017
Base Estimated Market Value * $130,553
Original Net Tax Capacity * $1,958
Assessment/Collection Year
2017/2018 2018/2019 2019/2020 2020/2021
Base Estimated Market Value $130,553 $130,553 $130,553 $130,553
Increase in Estimated Market Value 0 11,569,447 11,920,447 12,281,977
Total Estimated Market Value 130,553 11,700,000 12,051,000 12,412,530
Total Net Tax Capacity $1,958 $233,250 $240,270 $247,501
City of Lakeville 37.510%
Dakota County 28.004%
ISD #192 54.269%
Other 4.907%
Local Tax Capacity Rate 124.690% 2016/2017
Fiscal Disparities Contribution From TIF District 37.0302%
Administrative Retainage Percent (maximum = 10%) 5.00%
Pooling Percent 15.00%
Bonds Note (Pay-As-You-Go)
Bonds Dated NA Note Dated 08/01/17
Bond Issue @ 0.00% (NIC) NA Note Rate 4.00%
Eligible Project Costs NA Note Amount $1,360,000
Present Value Date & Rate 08/01/17 4.00% Present Value Amount $1,153,134
Notes
Assumptions assume no change to future tax rates, class rates, and a 3% annual MV inflator is assumed
Calculations include payable 2017 final tax capacity rates
Total EMV upon completion based on Dakota County Assessor's estimate of $11.7M
* Base EMV of portion (approx. 18.87%) of single property as provided by Dakota County
Exhibit III SPRINGSTED Page 19 Projected Tax Increment ReportCity of Lakeville, MinnesotaTax Increment Financing (Economic Development) District No. 22Proposed Launch Park Project (286,000 SF Bldg)Draft TIF Plan Exhibits: $11.7M EMV with 3% MV InflatorLess: Less: Retained Times: Less: Less: P.V.Annual Total Total Original Fiscal Captured Tax Annual State Aud. Subtotal Adm./PoolingAnnual AnnualPeriod Estimated Net Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Deduction Net Tax Retainage Net Net Rev. ToEnding Market Value (1)Capacity (2)Capacity(3)37.0302% Capacity Rate (4)Increment 0.360% Increment 20.00% Revenue 08/01/17(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 4.00%12/31/17 130,553 1,958 1,958 0 0 124.690% 0 0 0 0 0 012/31/18 130,553 1,958 1,958 0 0 124.690% 0 0 0 0 0 012/31/19 11,700,000 233,250 1,958 85,648 145,644 124.690% 181,603 654 180,949 36,190 144,759 132,96612/31/20 12,051,000 240,270 1,958 88,247 150,065 124.690% 187,116 674 186,442 37,288 149,154 131,73312/31/21 12,412,530 247,501 1,958 90,925 154,617 124.690% 192,792 694 192,098 38,420 153,678 130,50912/31/22 12,784,906 254,948 1,958 93,683 159,307 124.690% 198,640 715 197,925 39,585 158,340 129,29612/31/23 13,168,453 262,619 1,958 96,523 164,138 124.690% 204,663 737 203,926 40,785 163,141 128,09312/31/24 13,563,507 270,520 1,958 99,449 169,113 124.690% 210,867 759 210,108 42,022 168,086 126,89912/31/25 13,970,412 278,658 1,958 102,463 174,237 124.690% 217,256 782 216,474 43,295 173,179 125,71612/31/26 14,389,524 287,040 1,958 105,567 179,515 124.690% 223,837 806 223,031 44,606 178,425 124,54212/31/27 14,821,210 295,674 1,958 108,764 184,952 124.690% 230,617 830 229,787 45,957 183,830 123,380$1,847,391 $6,651 $1,840,740 $368,148 $1,472,592 $1,153,134(1) value based on estimate provided by County Assessor for 286,000 SF building(2) tax capacity based on commercial-industrial class rate of 1.50% for first $150,000 of value and 2% for value above $150,000(3) original net tax capacity will be based on portion (approximately 18.87%) of existing land value and commercial-industrial class rate for payable 2017(4) combined local tax capacity rate of City of Lakeville, ISD 192, Dakota County and Vermillion River Watershed District for payable 2017
Exhibit IV SPRINGSTED Page 20 Estimated Impact on Other Taxing Jurisdictions ReportCity of Lakeville, MinnesotaTax Increment Financing (Economic Development) District No. 22Proposed Launch Park Project (286,000 SF Bldg)Draft TIF Plan Exhibits: $11.7M EMV with 3% MV InflatorWithoutProject or TIF District With Project and TIF DistrictProjected Hypothetical2016/2017 2016/2017 Retained New Hypothetical Hypothetical Tax GeneratedTaxable 2016/2017 Taxable Captured Taxable Adjusted Decrease In by RetainedTaxing Net Tax Local Net Tax Net Tax Net Tax Local Local CapturedJurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*)City of Lakeville 63,766,06237.510% 63,766,062 $184,952 63,951,014 37.402% 0.108% 69,175Dakota County 420,417,622 28.004% 420,417,622 184,952 420,602,574 27.992% 0.012% 51,771ISD #192 28,933,764 54.269% 28,933,764 184,952 29,118,716 53.924% 0.345% 99,734Other (2) --- 4.907% --- 184,952 --- 4.907% --- --- Totals 124.690% 124.225% 0.465% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each ofthe 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 ratewould decrease by 0.465% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that theRetained 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 3.94% of the total tax rate.
Exhibit V
SPRINGSTED Page 21
Market Value Analysis Report
City of Lakeville, Minnesota
Tax Increment Financing (Economic Development) District No. 22
Proposed Launch Park Project (286,000 SF Bldg)
Draft TIF Plan Exhibits: $11.7M EMV with 3% MV Inflator
Assumptions
Present Value Date 06/30/17
P.V. Rate - Gross T.I. 4.00%
Increase in EMV With TIF District $14,690,657
Less: P.V of Gross Tax Increment 1,441,748
Subtotal $13,248,909
Less: Increase in EMV Without TIF 0
Difference $13,248,909
Annual Present
Gross Tax Value @
Year Increment 4.00%
1 2019 181,603 166,246
2 2020 187,116 164,704
3 2021 192,792 163,174
4 2022 198,640 161,657
5 2023 204,663 160,152
6 2024 210,867 158,661
7 2025 217,256 157,181
8 2026 223,837 155,713
9 2027 230,617 154,260
$1,847,391 $1,441,748