HomeMy WebLinkAbout95-02THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF LAKEVILLE
COUNTY OF DAKOTA
STATE OF MINNESOTA
RESOLUTION NO. 95 -2
BEING A RESOLUTION ADOPTING AN AMENDMENT TO THE TAX
INCREMENT FINANCING PLAN FOR TAX INCREMENT DISTRICT NO. 10
(FAIRFIELD BUSINESS CAMPUS) LOCATED WITHIN I -35 REDEVELOPMENT
PROJECT NO. 1.
WHEREAS, The Housing and Redevelopment Authority in and for the City of Lakeville,
Minnesota (the "Authority") and the City of Lakeville, Minnesota (the "City"), established the I -35
Redevelopment Project (the "Project ") in March of 1984, pursuant to Minnesota Statutes, Section
469.001 to 469.047, inclusive, as amended.
WHEREAS, the Authority adopted modification No. I to the I -35 Redevelopment Project and
adopted Tax Increment District No. 10, pursuant to and in accordance with Minnesota Statutes, Sections
469.001 to 469.047 and Sections 469.174 to 469.179, Inclusive, as amended.
WHEREAS, the City is not required to hold a public hearing or submit the Plan to the County
Board or the School Board in which this District Is located since (a) there is no enlargement or
reduction of the project or the tax increment financing district, (b) there is no increase in the amount of
bonded indebtedness, (c) there is no increase in capitalized interest, (d) there is no increase in amount of
captured tax capacity, (e) there is no increase in expenditures and (f), there is no additional property to be
acquired;
NOW, THEREFORE, BE IT RESOLVED by The Housing and Redevelopment Authority in and for the
City of Lakeville, Minnesota, as follows:
1. The Authority hereby finds and determines:
(a) that the amendment to Tax Increment District No. 10 and the adoption of the Amended
Finance Plan are in the public interest and to the benefit of the health, safety and welfare of the City;
(b) that the Amended District continues to be a redevelopment district as defined in
Minnesota Statutes, Section Section 469.174, Subd. 10;
(c) that the Amended Plan conforms to the general plan for the development of the City as a
whole;
(d) that the Amended Plan will afford maximum opportunity, consistent with the sound
needs of the City as a whole for the development of the Project by private enterprise.
2. The Amended Plan is hereby approved and adopted by the Authority In substantially the
form on file with the City on this date. The Executive Director Is hereby authorized and directed to
submit the amended Plan to the City Council together with a request that the City Council approve such
Plan without the need for the findings pursuant to Minnesota Statutes, Section 469.175, Subd. 3.
3. The Executive Director is Hereby authorized and directed to file a copy of the amended
Plan with the Minnesota Department of Revenue together with a copy of the current Plan for the Project.
4. Following approval of the amended Plan by the City, the Executive Director, together
with the Authority's financial advisor, legal counsel and bond counsel, is authorized and directed to
proceed with the implementation of the amended Plan, and for this purpose to negotiate, draft, prepare
and present to this Board for its consideration all resolutions, documents and contracts necessary for this
purpose.
Dated: June 5, 1995
Chairman
Aftest:
Executive Director
(SEAL)
THE CITY OF LAKEVILLE
AMENDED TAX INCREMENT FINANCING PLAN NO. 10
BUDGET SUBSTITUTIONS
(Minnesota Statutes, Sections 469.174 to 469.179)
WITHIN
1 -35 REDEVELOPMENT PROJECT NO. 1
(AS PREVIOUSLY MODIFIED)
(Minnesota Statutes, Sections 469.001 to 469.047)
for
A REDEVELOPMENT DISTRICT
(FAIRFIELD INDUSTRIAL PARK)
Date: June 5, 1995
Original Plan: 04/17/89 Draft #1: 05/16/95
Draft #2: 05/18/95
TABLE OF CONTENTS
TAX INCREMENT FINANCING PLAN NO. 10
(6/5/95 BUDGET AMENDMENTS)
Page
A.
Statutory Authority
1
B.
Statement of Objectives
1
C.
Development Program
1
D.
Description of Property in the Tax Increment Financing District
2
E.
Classification of the Tax Increment Financing District
2
F.
Parcels in Acquisition
4
G.
Estimate of Costs
4
H.
Estimated Amount of Bonded Indebtedness
4
I.
Sources of Revenue
4
J.
Original Tax Capacity and Rate
5
K.
Estimated Captured Tax Capacity
5
L.
Duration of the District
5
M.
Estimated Impact on Other Taxing Jurisdictions
6
N.
Modifications of the Tax Increment Financing District
7
O.
Limitation on Administrative Expenses
8
P.
Limitation on Duration of Tax Increment Financing Districts
8
Q.
Limitation on Qualification of Property in Tax Increment District
Not Subject to Improvement
9
R.
Limitation on the Use of Tax Increment
9
S.
Notification of Prior Planned Improvements
9
T.
Excess Tax Increments
10
U.
Requirement for Agreements with the Developer
10
V.
Tax Capacity Agreements
10
W.
Administration of the Tax Increment Financing Redevelopment
District and Maintenance of the Tax Increment Account
I 1
X.
Annual Disclosure Requirements
I 1
Y.
Assumptions
12
Z.
Municipal Findings
12
Map
Existing Tax Increment District and Redevelopment Project
3
APPENDIX A List of Property in Existing Tax Increment District
APPENDIX B Status Report and "But For" Finding
APPENDIX C Efigibility of Tax Increment District as a
Redevelopment District
APPENDIX D Amended Project Costs
APPENDIX E Amended Bond Capacity Exhibit
APPENDIX F Amended Tax Increment Estimate
TC - 1
AMENDED
TAX INCREMENT FINANCING PLAN NO. 10
(BUDGET SUBSTITUTION)
A. Statutory Authority
The City of Lakeville is authorized to establish and modify a tax increment district
pursuant to Minnesota Statutes, Sections 469.174 - 469.179.
B. Statement of Objectives
See Section "IIA" of I -35 Redevelopment Project No. 1 Development Program
(adopted by reference) in addition to the following:
1. Create projects that compliment public and private efforts to attract
industry.
2. Pursue projects that gain wide public support and receive city council
endorsement.
3. Develop projects causing diverse groups to communicate on a regular
basis.
4. Develop land to realize its highest and best use.
5. Create opportunities to increase employment, increase tax base and protect
environmental excellence.
6. Attract new uses to replace incompatible land uses, assist others to
relocate.
7. Provide for project funding that is feasible and practicable.
8. Minimize risk for joint public/private ventures.
9. Provide well - planned commercial areas that maximize shopper, visitor
convenience and interest, minimize traffic, pedestrian conflict.
C. Development Program
1. Description of Development Activities
See Appendix `B"
1
2. Development Activities Covered by Contracts
See Appendix `B"
3. Other Development Not Under Contract Reasonably Expected to Occur in
the Project.
See Appendix `B"
D. Description of Property in the Tax Increment Financing District.
See Appendix "A" of this report for a list of property in the Tax Increment
District.
A map revealing the location of the tax increment parcel within the Redevelopment
Project area is provided on the following page.
E. Classification of the Tax Increment Financing District
The City Council of the City of Lakeville, Minnesota, in determining the need for a
tax increment financing district in accordance with Minnesota Statutes Sections
469.174 - 469.179, inclusive, found that the district is a redevelopment district
pursuant to Minnesota Statutes Section 469.174, Subdivision 10. Please refer to
Appendix "C" of this plan for eligibility rational.
The tax increment financing district met the statutory requirements of a
redevelopment district and is referred to as a redevelopment tax increment
financing district. The parcel that was used to establish eligibility as a
redevelopment tax increment financing district is listed in Appendix "C" of this
plan.
2
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F. Parcels in Acquisition
1. Properties identified for acquisition may be acquired by the City in order to
accomplish one or more of the following: remove, prevent, or reduce
blight, blighting factors, causes of blight, or the spread of blight and
deterioration; to eliminate unhealthful, unsafe, and unsanitary structures
and conditions; reduce traffic hazards; provide land for needed public
streets, utilities, and facilities; remove incompatible land use, eliminate
obsolete or detrimental uses; assemble land for redevelopment; carry out
clearance and/or redevelopment to accomplish the uses and objectives set
forth in this plan.
2. Properties so identified include the following parcel:
The property has been acquired by the City of Lakeville.
3. Conditional Acquisition
Additional property within the District may be acquired by the City should
it become necessary for future redevelopment with the condition that there
is sufficient tax increment or other funds available to finance the costs
associated with the acquisition of such property.
G. Estimate of Costs
The public costs associated with the current proposals within the District are
outlined in Appendix "D ", Project Costs. It is expected that all or a portion of the
public costs will be financed with tax increment financing.
H. Estimated Amount of Indebtedness
See Appendix "D" and "E" of this Plan.
I. Sources of Revenue
The principle source of revenue to be used to finance public costs associated with
the current development proposal in the District is tax increment financing. Tax
increment financing refers to a funding technique that utilizes increases in tax
capacity valuation and the property taxes attributed to new development to
finance, or assist in the financing of public development costs. See Appendix "F"
for Revenue Projections. The City may from time to time utilize other revenue
sources to finance public costs.
4
Original Net Tax Capacity and Rate
Pursuant to Minnesota Statute s, Section 469.175, Subdivision 1 and Section
469.177, Subdivision 1, the Original Net Tax Capacity (OTC) for the City of
Lakeville Tax Increment Financing Redevelopment District No. 10 is based on the
tax capacity value placed and rate on the property by the County Assessor in 1988.
This tax capacity value is $8,208 while the rate is .966212. Each year the Office of
the County Auditor will measure the amount of increase or decrease in the total
tax capacity value and rate of the tax increment redevelopment district to calculate
the tax increment payable to the redevelopment district fund. In any year in which
there is an increase in total tax capacity valuation in the tax increment
redevelopment district above the adjusted original tax capacity value, a tax
increment will be payable. In any year in which the total tax capacity valuation in
the tax increment financing redevelopment district declines below the original tax
capacity valuation, no tax capacity valuation will be captured and no tax increment
will be payable.
The County Auditor shall certify in each year after the date the Original Tax
Capacity Value was certified, the amount the OTC has increased or decreased as a
result of.
1. change in tax exempt status of property;
2. reduction or enlargement of the geographic boundaries of the district;
3. change due to stipulations, adjustments, negotiated or court- ordered
abatements; or
4. classification changes under Section 273.
K. Estimated Captured Tax Capacity Value
Pursuant to Minnesota Statutes Section 469.175, Subdivision 1 and Minnesota
Statutes Section 469.177, Subdivision 2, the estimated Captured Tax Capacity
Value (CTC) of the tax increment financing redevelopment district, with all phases
completed, will annually approximate $730,000. This amount will be captured
(see Appendix "F") for up to twenty -five years or until the debt is retired.
L. Duration of the District
Pursuant to Minnesota Statutes. Section 469.176, Subdivision 1, the duration of
the tax increment district within the Development Project must be indicated within
the finance plan. The duration of the tax increment district will be twenty -five
years from the date of receipt of the first tax increment, including modifications to
the finance plan for subsequent phases or other changes.
5
M. Estimated Impact on Other Taxing Jurisdictions
The impact of the loss of tax dollars represented as tax increments is estimated
below for each taxing jurisdiction. This estimate is based on the redevelopment
estimates and does not include the possible tax increments derived from any other
future development, but not for tax capacity inflation factors. The estimated
impact on other jurisdictions assumes development would have occurred without
the creation of the District. If the development is a result of the creation of the
District, the impact is $0 to other jurisdiction.
Total Tax
Capacity Value
Tax Increment Finance District 1/88 Total $ 8,208
(Most recently certified by Commissioner
of Revenues)
Latest Tax Capacity Value of Each Government Body:"
% of District
to Total
Dakota County $ 229,727,728 .0034
School District #194 $ 16,950,549 .0448
City of Lakeville $ 15,487,964 .0491
Considering all the districts, it can be seen from the above that the school and
county districts will have over 99% of each respective jurisdiction available for
normal growth of tax base or valuation. Applying the percentage of the total tax
capacity rate in 1989 levied by each taxing jurisdiction to the projected tax
capacity rate and the estimated tax increment received reveals the annual loss of
tax dollars by each taxing jurisdiction as listed in the table below ASSUMING
DEVELOPMENT WOULD OCCUR WITHOUT PUBLIC ASSISTANCE.
The finance plan indicates an anticipated tax increment at build out as follows:
Captured
Tax
Tax
Increment
Capacity
Received
Tax Increment Finance District $ 727,000
$ 700,000
Based on the current tax capacity rate, the estimated taxes received would be as
follows for the taxing bodies:
0
Rate
Special Districts
.014907
City
.215230
County
.207212
School District
.528863 *'
Total
.966212 *
Percent
Tax Increment
1.6
$ 11,200
22.3
156,100
21.4
149,800
54.7
382,900
100.0
$ 700,000
*' Any tax capacity rate that is a result of a referendum will be subtracted from
.966212 and will not be used to calculate tax increments.
N.
* Original tax capacity rate or less -- but not more -- will be used to calculate tax
increment.
The following table represents the additional tax capacity rates that would have to
be levied to compensate for the loss of tax increment dollars in estimated tax
increments for each jurisdiction. The tax increments derived from the development
alluded to in the tax increment district would not be available to any of the
jurisdictions were it not for public intervention by the City. Although the increases
in tax capacity value due to development will not be available for application of the
tax capacity rate for the duration of the tax increment financing district, this new
tax capacity could eventually permit a rate decrease. If it could be assumed that
the captured tax capacity was available for each jurisdiction, the non - receipt of tax
dollars represented as tax increments may be determined. This determination is
facilitated by estimating how much the tax capacity rate for property outside of the
tax increment financing district would have to be increased to raise the same
amount of tax dollars in each jurisdiction that would be available if the
development occurred WITHOUT THE ASSISTANCE OF THE CITY.
Adjusted*
Required
Tax
Tax CapacitX
Rates
Increments
School District $ 16,942,949
2.260
$ 382,900
County $ 229,720,128
.065
$ 149,800
City $ 15,480,364
1.008
$ 156,100
* Tax Increment District tax capacity subtracted.
Modifications of the Tax Increment Financing District
In accordance with Minnesota Statutes Section 469.175, Subdivision 4, any
reduction or enlargement of the geographic area of the project or tax increment
financing district, increase in amount of bonded indebtedness to be incurred,
including a determination or capitalize interest on debt if that determination was
7
not a part of the original plan, or to increase or decrease the amount of interest on
the debt to be capitalized, increase in the portion of the captured tax capacity to be
retained by the City, increase in total estimated tax increment expenditures or
designation of additional property to be acquired by the authority shall be
approved upon the notice and after the discussion, public hearing and findings
required for approval of the original plan. The geographic area of a tax increment
financing district may be reduced, but shall not be enlarged after five years
following the date of certification of the original tax capacity by the county
auditor. The tax increment financing redevelopment district may therefore be
expanded until 1994.
O. Limitation on Administrative Expenses
In accordance with Minnesota Statutes. Section 469.174, Subdivision 14 and
Minnesota Statutes. Section 469.174, Subdivision 3, administrative expenses
means all expenditures of an authority other than amounts paid for the purchase of
land or amounts paid to contractors or others providing materials and services,
including architectural and engineering services, directly connected with the
physical development of the real property in the district, relocation benefits paid to
or services provided for persons residing or businesses located in the district or
amounts used to pay interest on, fund a reserve for, or sell at a discount bonds
issued pursuant to Section 469.178. Administrative expenses includes amounts
paid for services provided by bond counsel, fiscal consultants, and planning or
economic development consultants. No tax increment shall be used to pay any
administrative expenses for a project which exceed ten percent of the total tax
increment expenditures authorized by the tax increment financing plan or the total
tax increment expenditures for the project, whichever is less.
P. Limitation on Duration of Tax Increment Financing Districts
Pursuant to Minnesota Statutes. Section 469.176, Subdivision 1, "no tax increment
shall be paid to an authority ... three years from the date of certification ... by
the County Auditor ... unless within the three -year period (1) bonds have been
issued pursuant to Section 469.178 or in aid of a project pursuant to any other
law, except revenue bonds issued pursuant to Minnesota Statutes. Sections
469.152 through 469.165, prior to August 1, 1979; or (2) the authority has
acquired property within the district; or (3) the authority has constructed or caused
to be constructed public improvements within the district . . ." The City must
therefore issue bonds, or acquire property, or construct or cause public
improvements to be constructed by 1992 or the Office of the County Auditor may
dissolve the tax increment financing district.
8
G
R.
S
Limitation on Qualification of Property in Tax Increment District Not Subject to
Improvement
commenced. The county auditor shall certify the tax capacity thereof as most
recently certified by the commissioner of revenue and add it to the original tax
capacity of the tax increment financing district.
Pursuant to Minnesota Statutes Section 469.176, Subdivision 6, "if, after four
years from the date of certification of the original tax capacity of the tax increment
financing district . . ., no demolition, rehabilitation or renovation of parcel or other
site preparation, including improvement of a street adjacent to a property but not
installation of utility service including sewer or water systems, has been
commenced on a parcel located within a tax increment financing district by the
authority or by the owner of the parcel in accordance with the tax increment
financing plan, no additional tax increment may be taken from that parcel and the
original tax capacity value of that parcel shall be excluded from the original tax
capacity of the tax increment financing district. If the authority or the owner of the
parcel subsequently commences demolition, rehabilitation or renovation or other
site preparation on that parcel including improvement of a street adjacent to that
parcel, in accordance with the tax increment financing plan, the authority shall
certify to the county auditor in the annual disclosure report that the activity has
Limitation on the Use of Tax Increment
All revenues derived from tax increment shall be used in accordance with the tax
increment financing plan. The revenues shall be used to finance or otherwise pay
public redevelopment costs pursuant to Minnesota Statutes Chapter 469. These
revenues shall not be used to circumvent existing levy limit law. No revenues
derived from tax increment shall be used for the construction or renovation of a
building used primarily and regularly for conducting the business of the
municipality, county, school district, or other governmental; this provision shall not
prohibit the use of revenues derived from tax increments for the construction or
renovation of a parking structure, a commons area used as a public park or a
facility used for social, recreational or conference purposes and not primarily for
conducting the business of the municipality.
Notification of Prior Planned Improvements
Pursuant to Minnesota Statutes Section 469.177, Subdivision 4, the City has
reviewed and searched the properties to be included in the tax increment financing
redevelopment district and found no properties for which building permits have
been issued during the 18 months immediately preceding approval of the tax
increment financing plan by the city. If the building permit has been issued within
the 18 month period preceding approval of the tax increment financing plan by the
city, the county auditor shall increase the original tax capacity of the district by the
tax capacity of the improvements for which the building permit was issued.
2
T. Excess Tax Increments
Pursuant to Minnesota Statutes. Section 469.176, Subdivision 2, in any year in
which the tax increment exceeds the amount necessary to pay the costs authorized
by the tax increment plan, including the amount necessary to cancel any tax levy as
provided in Minnesota Statutes. Section 475.61, Subdivision 3, the City shall use
the excess amount to:
prepay the outstanding bonds;
2. discharge the pledge of tax increment therefore;
3. pay into an escrow account dedicated to the payment of such bond;
4. repay any loans including interest on these loans; or
5. return the excess to the County Auditor for redistribution to the respective
taxing jurisdictions in proportion to their tax capacity rate.
U. Requirements for Agreements with the Developer
Pursuant to Minnesota Statutes Section 469.176, Subdivision 5, no more than 25
percent by acreage of the property to be acquired by the City in the redevelopment
district shall be owned by the City as a result of acquisition with the proceeds of
bonds issued pursuant to Section 469.178 without the City having prior to
acquisition in excess of 25 percent of the acreage, concluded an agreement for the
development of the property acquired and which provides recourse for the City
should the development not be completed.
V. Assessment Agreements
Pursuant to Minnesota Statutes Section 469.177, Subdivision 8, the City may,
upon entering into a development agreement pursuant to Minnesota Statutes
Section 469.176, Subdivision 5, enter into an agreement in recordable form with
the developer of property within the tax increment financing district which
establishes a minimum market value of the land and completed improvements for
the duration of the tax increment redevelopment district. The assessment
agreement shall be presented to the county assessor who shall review the plans and
specifications for the improvements to be constructed, review the market value
previously assigned to the land upon which the improvements are to be
constructed and so long as the minimum market value contained in the assessment
agreement appears in the judgment of the assessor, to be a reasonable estimate, the
assessor may certify the minimum market value.
10
W. Administration of the Tax Increment Financing Redevelopment District and
Maintenance of the Tax Increment Account.
Administration of the tax increment financing redevelopment district will be
handled by the Office of the City Manager.
The tax increment received as a result of increases in the tax capacity of the tax
increment financing redevelopment district will be maintained in a special account
separate from all other municipal accounts and expended only upon sanctioned
municipal activities identified in the finance plan.
X. Annual Disclosure Requirements
Pursuant to Minnesota Statutes. Section 469.175, Subdivision 5, an authority must
file an annual disclosure report for all tax increment financing districts. The report
shall be filed with the school board, county board and the Minnesota Department
of Trade and Economic Development. The report shall include the following
information:
1. The original tax capacity value of the district;
2. The captured tax capacity value of the district, including the amount of any
captured tax capacity shared with other taxing districts;
3. The outstanding principal amount of bonds issued or other loans insured to
finance project costs in the district;
4. For the reporting period and for the duration of the district, the amount
budgeted under the tax increment financing plan, and the actual amount
expended for, at least, the following categories:
a. Acquisition of land and buildings through condemnation or
purchase;
b. Site improvements or preparation costs;
C. Installation of public utilities or other public improvements;
d. Administrative costs, including the allocated cost of the authority.
5. For properties sold to developers, the total cost of the property to the
authority and the price paid by the developer;
11
6. The amount of tax exempt obligations, other than those reported under
clause (3), that were issued on behalf of private entities for facilities located
in the district.
Y. Assumptions
It was necessary to make certain assumptions regarding income, costs and timing
of the tax increment redevelopment district. These assumptions are based on
discussions with city officials and developers.
Z. Municipal Findings
Pursuant to Minnesota Statutes. Section 469.175, Subdivision 3, before or at the
time of approval of the tax increment financing plan, the municipality shall make
the following findings and shall set forth the reasons and supporting information
for the determination (see Appendix B):
The proposed development or redevelopment, in the opinion of the City,
would not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and, therefore, the use
of tax increment financing is deemed necessary since developers could not
feasibly construct the improvements without the use of tax increments to
assist with the financing of land acquisition and public improvement; and
2. The tax increment financing plan will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development
by private enterprise as it will enable the acquisition for development,
thereby encouraging redevelopment in the area.
3. The tax increment financing plan conforms to the general plan for the
development of the City as a whole.
4. The tax increment district to be established is a redevelopment district
pursuant to Minnesota Statutes Section 469.174, Subdivision 10 in which
the conditions described in Appendix "C" of this plan exist.
12
APPENDIX "A"
Parcel in Tax Increment District No. 10
OWNER DESCRIPTION
City of Lakeville The district is legally described as:
South 1/2, of Southeast Quarter, Section
25, Twn 114, Range 21, City of Lakeville,
Dakota County, State of Minnesota.
Property Identification Number
22- 02500- 010 -77
Appendix "A" - 1
APPENDIX "B"
DISTRICT STATUS
The City of Lakeville acquired the blighted 80 acre Fairfield Business Park site due
to its negative influence on the adjacent successful I -35 Redevelopment Project and Tax
Increment District. The parcel comes with a number of blighted structures and major
topographical problems. It will be necessary for the City to make substantial public
improvements to the parcel before it will be a feasible development site.
The engineering problems were studied by the Donohue Company, Engineers and
Architects. A report was presented to the City regarding the costs to cure the problems as
well as the infrastructure costs necessary for development. The firm concluded that the
improvements were feasible but required substantial investment on the part of the City in
order to be marketable. It is based on these conclusions that tax increment was
considered a supplemental financing tool to reduce the cost of the improvements thereby
permitting a more favorable marketing climate.
A proposed preliminary plat and grading plan has been drawn for this project that
includes a high percentage of commercial while providing lots for some residential and
park land. It is not expected that development would take place in the immediate future
due to the expense to cure the engineering problems without City assistance.
However, the City is currently attempting to market a site for commercial
development and is currently assisting the marketing of the remainder of the tax increment
parcel for residential.
Appendix `B" -
APPENDIX "C"
ELIGIBILITY
Pursuant to Minnesota Statutes, Section 469.174, Subd. 10(a)(1), 70 percent of
the parcels in the proposed redevelopment district are occupied by buildings and 100
percent of the buildings are structurally substandard to a degree requiring substantial
renovation or clearance. Currently, the proposed district consists of one parcel defined
pursuant to Minnesota Statutes, Section 469.174, Subd. 15, as a tract or plat of land
established prior to the certification of the district as a single unit for purposes of
assessment (a tax parcel). The primary building on the single parcel of land (100 percent
occupied) is a structurally substandard vacant blighted industrial building (100 percent
substandard). There are also several auxiliary buildings that have not been used for the
finding of blight. Pursuant to Minnesota Statutes, Section 469.174, Subd. 10(b),
structurally substandard shall mean the primary building containing defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and
ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors, which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance. The building has been examined
by City officials and consultants and has been found to be defined as structurally
substandard. Therefore, the proposed tax increment district will be eligible as a tax
increment redevelopment district and will be referred to as a tax increment redevelopment
district in this plan.
Appendix "C" - 1
APPENDIX "D"
PROJECT COSTS
A. ORIGINAL BUDGET
• Land Acquisition
• Site Improvements
• Public Improvements
• Bonding/Legal, Discount/Issuance
• Capitalized Interest
• Administration
• Contingency
Initial
Other
Phases
Phases
$ 380,000 *
$ --
2,800,000
--
--
4,000,000
100,000
--
1,360,000
--
100,000
--
200.000
500.000
$ 5,440,000
$ 4,500,000
Total All Phases $ 9.940.000
* The City may reimburse itself for land acquisition
B. ALTERATION OF ORIGINAL BUDGET
• Land Acquisition
• Site Improvements
• Public Improvements
• Bonding/Legal, Discount/Issuance
• Capitalized Interest
• Phase H
• Administration
• Contingency
Total All Phases
* * No Budget Increases
$ 800,000
$ 1,000,000
270,000
2,000,000
1,815,000
1,500,000
85,000
100,000
400,000
500,000
365,000
100,000
50,000
500.000
405.000
$ 4,385,000
$ 5,555,000
$
9.940.000 * *
Appendix "D" - 1
APPENDIX "E"
BOND CAPACITY EXHIBIT
PROJECT PHASES*
A. ORIGINAL ESTIMATE
-- Tax Increment
-- Interest Rate
-- Amortization Period
-- Capitalized Interest Period
-- Bond Term
-- Gross Bond (rounded)
-- Estimate Capitalized Interest
-- Net Bond
-- Total Combined Phases
I II III IV
$ 200,000 $ 200,000 $ 200,000 $ 200,000
10 0 /0
10%
10 0 /0
10 0 /0
12
12
12
12
3
3
3
3
15
15
15
15
1,360,000
1,360,000
1,360,000
1,360,000
340,000
340,000
340,000
340,000
1,020,000
1,020,000
1,020,000
1,020,000
$ 5,440,000
* Phases may be combined depending on development.
B. ALTERATION OF ORIGINAL ESTIMATE (1995 AMENDMENT)
-- Tax Increment
-- Interest Rate
-- Amortization Period
-- Bond Term
-- Gross Bond (rounded)
-- Estimated Capitalized Interest
-- Estimated Bond Issue
$ 0 $ 155,000
5% 8%
0 17
3 19
211,500 180,000
2,350,000 1,415,000
-- Total Combined 1995 Bonds $ 3,765,000
C. REMAINING BOND AUTHORITY WITHOUT A PLAN MODIFICATION
(A - B) = $1,675,000
Appendix 'IF' - 1
J
� I r
APPENDIX "F"
ESTIMATE OF TAX INCREMENTS FOR FAIRFIELD BUSINESS PARK
Commercial - based on 12 commercial lots with 45.6 acres
- 45.6 Acres x 25% coverage = 11.4 acres or 500,000 square feet
- Construction cost at $35.00 per square foot
- Total potential value = $ 17,500,000
- X sales ratio of 70° /a = S 12,250,000
- divided by 12 lots = $ 1,020
- Tax capacity for each site
- 3.30%x$100,000= $ 3,300
- 5.25% x $920,800 = $ 48,343
- Total $ 51,643
- Tax capacity for 12 sites
- 51.643 x 12 = $ 619716
Residential - based on 26 single family lots
- Market value of homes at
$ 80,000
- Sales ratio x 95% =
$ 76,000
- Tax capacity for each home
- 1% x 68,000 =
$ 680
- 2.5% x 8,000 =
$ 200
- Total
$ 880
- Tax capacity for 26 sites
$ 22.880
Residential - based on 8 multi -unit lots
- Market value of 100 units of apartments at $2,500,000
- Sales ratio x 90% = $2,250,000
- Tax capacity
- 4.10 x $2,250,000 = $ 92.E
- Total tax capacity $ 734,846
- Less original tax capacity $ 8.208
- Captured tax capacity $ 726.638
Tax Increment Estimate
- $726,638 tax capacity x
- .966212 tax capacity rate = $ 702,000
- Tax increment at full development $ 702.000
Appendix "F' - 1