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06-16-03 agendaCITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, JUNE 16, 2003 RICHFIELD WATER TREATMENT PLANT CONFERENCE ROOM 6221 PORTLAND AVENUE 7 P.M. AGENDA Call to order 1. Approval of minutes of Regular HRA Meeting on May 19, 2003 2. HRA approval of agenda 3. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of partnering with Twin Cities Habitat for Humanity to provide new first-time buyer opportunity at 6318 Knox Avenue S.R. No. 34 B. Consideration of approval of contract with HNTB for services of Michael Schroeder to assist with design services related to Blending Public Spaces and Private Development Work Group and formulating landscape plan at northeast quadrant of 76th Street and Penn Avenue S.R. No. 35 Notes: 4. Presentation and acceptance of Richfield HRA Annual Tax Increment District Status Update Staff Report No. 36 Notes: 5. Consideration of update on valuation of Candlewood outlet parcel and proposed use by Cufver's restaurant Staff Report Na. 37 Notes: 6. Public hearing and consideration of resolution authorizing eminent domain proceedings to acquire splinter parcel adjacent to City Bella project Staff Report No. 38 Notes: 7. Executive Director report 8. - ,Claims .and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. AGENDA ITEM # 5 REPORT # 3 7 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 16, 2003 REPORT PREPARED BY: REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT MANAGER NAME, T/TLE JOHN STARK, COMMUNITY DEVELOPMENT MANAGER DEPARTMENT DIRECTOR REVIEW: C~" NAME, T/TLE SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of the update on the valuation of the Candlewood outlot parcel and consideration of a ro osed use. I. RECOMMENDED ACTION: By Motion: Direct staff on whether or not to continue discussions with Culver's restaurant for development of the Candlewood outlot parcel II. BACKGROUND Beginning in January 2003, Mr. Bob Corsin, a franchisee of Culver's restaurant, has been in preliminary discussions with staff regarding his interest in developing the vacant Housing and Redevelopment Authority (HRA) owned parcel adjacent to the Candlewood Hotel. Since that time, the following events have occurred: • Mr. Corsin provided staff with a preliminary site plan for the development of the site; • Staff has visited two Culver's restaurants (including one in Chaska that is owned by Mr. Corsin) that are similar in layout and architecture to the restaurant being proposed; • The property was recently appraised at a value of $530,000 ($10.75/sq. ft.). 061603cand In his preliminary financial analysis, Mr. Corsin believes that it would be financially feasible to purchase the property at its appraised value and to construct and operate a Culver's restaurant. Staff has advised Mr. Corsin, however, that the HRA has expressed a desire to see that site developed with afull-service restaurant (i.e. wait staff service). Before investing in further professional services (market study, financial analysis, architecture, etc.), Mr. Corsin is seeking some direction from the HRA as to whether a Culver's restaurant would. be acceptable on this site. Staff s observations of Culver's restaurants are that, it: • Is a fast food restaurant by virtue of its drive-up window and counter service; • Is at the high-end on the service continuum for fast food restaurants because of features. such as greeters, trash service, limited-table service (drink refills, etc.), higher quality meats, more traditional dinner entree offerings, etc., and; • Hasa "prototype" architecture, although superior materials (all brick exterior walls, metal roof, etc.) are used-and the color scheme may "fit" well with surrounding`,uses. It is difficult to determine whether a Culver's restaurant on this site represents its "highest and best" use.. In the most recent appraisal, a number. of uses are listed as highest and best, including a full service restaurant, bank, freestanding retail store, car rental agency or medical office. In the appraisal it is noted that the property is not on a corner, nor does it have direct freeway accessibility and freeway visibility is limited. These are the same factors-that have -made this parcel difficult to market to full service restaurants during the past six years. In discussions with the appraiser, they felt it may be unrealistic to expect a "big name" sit down restaurant to purchase the site. Upon mention of Culver's, the appraiser stated that they thought that would be the ideal type of user for the site. The staff consensus is that the site has been viewed as not being visible or accessible enough for nationally or regionally prominent full service restaurants; but that it is unknown whether the new redevelopments in the area (including Best Buy) offer enough critical mass to overcome these characteristics. Staff, therefore, is not making a specific recommendation regarding whether or not to continue discussions with Culver's, but is instead, seeking input and clarification from the HRA regarding their desired uses on the site. III. BASIS OF RECOMMENDATION A. POLICY • The HRA owns the site and has control over how the site is ultimately developed. B. CRITICAL ISSUES • A Culver's franchisee has expressed a great deal of interest in the site. • The property is being leased to The Cornerstone Group until April 2004 for use by their Kensington Park marketing trailer (although they hope to remove the trailer by December 2003). ~: i w I~ x d~~hl~ ~ . ~ ~°.~ Z O Z .~~I. ~ U O f/1 r-~ L~J ..J I ~ L1J 1 ~ L1_ ~T~ .1_ i / .~- __~ /~~ /~.~ ~ -~ L1~ L1. / • < ~I ~_i i. ~~'~ L1. ll. \ 1 ~ 1 L1J ~__ ~~ '~ `-' , `1\ ~.~J~ ~`~ ~ \I O~\ ~L ~i L1~ ` ~ }~' . r . i+ ~s ~ c o oy. ~ .. ~ ~~r'db •oi\ ~ y o ~ ~ O~o ~~ ~ ~~\ ~~¢~ T. c vW ` ` u° s~ ~ ` ~,~ ~ y \ ~ s i ~ ~ m CCj~, ~ ~ ~~ ~ ~J ~~'Yj \ ` 1 ., o, ` i s ~~°' ~ Vy ~ ~, , ~., o'o y ~, ~ - -- ~ . . ` ~ -~ ~ ~ ~ ~ ~ ~ Qt ~_~ ~ ~ `e,~ ~ O~ 0~ ~ ~ ~ ~~ 4 Q~ ~ __ ~~ ~0~~ ~~ ~ % ~ O~~i c ~~ • ` G 0\ 1 ~ ~~ / o R 5`h0`` ~ ! `~ / 0~lQ i ~~~ 6~ d i 5'~ ~~~ c-- \/ -~- .. i. ~ __' r ~ ~i .. 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N O tll 0 1°a~YdHC3 = ° ° . -Uar I nmepc AGENDA ITEM # REPORT # ~ R STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 16, 2003 REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAn~, TITLE DEPARTMENT DIRECTOR REVIEW: S/GNATURE REVIEWED BY EXECUTIVE DIRECTOR: ~ C ~, ITEM FOR HRA CONSIDERATION: Public hearing regarding consideration of the attached resolution authorizing the use of eminent domain to acquire a splinter parcel adjacent to the City Bella project. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Adopt the attached resolution authorizing eminent domain proceedings- to acquire property for redevelopment pursuant to the City Bella project. III. BACKGROUND ~ Staff was recently contacted by the developer,. Gramercy Corporation, with information- that suggests a portion of vacated right-of--way may not yet. have been acquired. for the City Bella project. Using land survey information provided by the developer from 2000, the Housing. and Redevelopment Authority (HRA) had proceeded with eminent domain to include all vacated right-of--way in the project. A land survey performed in April, 2003 identified a small 8 ft. by 20 ft. vacated right-of- way area where title passed to Gramercy .Park. It is the developer's intent to acquire title from Gramercy Park. .However, Gramercy's lender has required resolution by October 1, 2003. The proceeding ensures the deadline can be met if for any reason Gramercy Park cannot convey the small parcel. 061603City Bella III. BASIS OF RECOMMENDATION A. POLICY The Amended and Restated Contract for Private Redevelopment between the HRA and Gramercy Corporation requires the acquisition of property within the project area. In accordance with the Contract, the Developer has requested the HRA to acquire the parcel described herein. B. CRITICAL ISSUES The parcel is within the City Bella project area. The public walkway cannot be completed without the acquisition of the parcel. • A public hearing has been scheduled after proper public notice. C. FINANCIAL • Any costs related to legal, publication and eminent domain proceedings are covered by the Developer. D. LEGAL • The request has been reviewed to confirm it is needed and documents J have been prepared by legal counsel. IV. ALTERNATIVE RECOMMENDATION(S~ • The HRA could decide n'ot to acquire this property and convey to the Developer. However, a portion of the walkway between the City Bella Plaza and Wood Lake Nature Center would not be part of the project. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A RESOLUTION NO. AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTIES FOR REDEVELOPMENT PURSUANT TO THE RICHFIELD REDEVELOPMENT PLAN (CITY BELLA PROJECT) WHEREAS, The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") is a housing and redevelopment authority duly constituted and organized under law, with all of the powers enumerated in Minnesota Statutes, Sections 469.001 to 469.047 (the "Act"); and WHEREAS, the HRA is authorized to develop and carry out redevelopment plans and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section 469.002, subdivisions 16 and 14; and WHEREAS, the HRA adopted a redevelopment plan (the "Redevelopment Plan") for the Richfield Redevelopment Project Area (the "Project Area") on May 17, 1993, and said plan was approved by the Richfield City Council on June 14, 1993; and WHEREAS, the HRA has received a proposal from Gramercy Corporation ("Redeveloper") to redevelop certain real estate in the City of Richfield (which real estate is legally described in Exhibit A attached hereto) as the "City Bella Project" (referred to herein as "Project"); and WHEREAS, the HRA adopted a modification to the Redevelopment Plan and established the City Bella Redevelopment Tax Increment District (the "TIF District") within the Project Area which has been found by the City's Planning Commission to be consistent with the City's Comprehensive Plan, and was approved by the City Council; and WHEREAS, the HRA previously adopted its Resolution No. 876 authorizing acquisition of certain real properties (the "Properties") which are located in the Project Area and which are more particularly described in Exhibit B attached hereto; and WHEREAS, the HRA has entered into a contract for private redevelopment (the "Contract") of land lying within the TIF District portion of the Project Area (including, but not limited to the Properties); and WHEREAS, the HRA believes that redevelopment of the Properties as contemplated by the Contract will promote and carry out the objectives of the Act and _ of the HRA as provided in the Redevelopment Plan, will be in the vital best interests of the City, will promote the health, safety, morals, and welfare of its residents and will be in accord with the public purposes and provisions of the applicable state and local laws and requirements under which activities within the Project Area have been undertaken RJL-231157v1 RC125-212 and are being assisted; and WHEREAS, the HRA or the Redeveloper pursuant to the Contract, has now acquired all of the Properties for the Project; and WHEREAS, the Redeveloper has concluded that it inadvertently failed to identify a small parcel of vacated street right-of--way ("Omitted Property") which it should have requested that the HRA acquire by condemnation for the Project and the Redeveloper has requested that the HRA authorize and direct the acquisition of the Omitted Property by use of eminent domain proceedings; and WHEREAS, the Redeveloper under the Contract is not in default of any of its obligations thereunder, and the HRA is satisfied that the Redeveloper has endeavored reasonably, but without success, to negotiate the acquisition of the Omitted Property; and WHEREAS, the Redeveloper has informed the HRA of the status of such efforts and has established, to the satisfaction of the HRA, that there is no substantial likelihood that further negotiations with the owners of the Omitted Property would be productive; and WHEREAS, the Redeveloper has requested that, in accordance with the terms of the Contract, the HRA commence eminent domain proceedings, and that such proceedings be undertaken as soon as possible so as to assure that the Omitted Property will be available for development when needed as contemplated by the Contract; and WHEREAS, except as qualified below, the HRA is satisfied, based upon the information provided, that the Redeveloper has complied with the requirements of the Contract concerning such request; and WHEREAS, the HRA must receive written confirmation prior to commencing this action that all costs associated with the condemnation will be covered by the Redeveloper; and WHEREAS, the HRA approved a Resolution scheduling a public hearing on Use of Eminent Domain Proceedings to Acquire Omitted Property for Redevelopment Pursuant to the City Bella Project on May 19, 2003; and WHEREAS, the minimum improvements proposed to be constructed on the Properties and Omitted Property pursuant to the Contract include 117 cooperative housing units, a 27-unit cooperative building, approximately 18,000 square feet of commercial retail space, 13 single family townhomes, public plaza and parking area related to said uses. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: RJL-231157v1 RC125-212 1. It is necessary to acquire the Omitted Property described on Exhibit C and depicted on Exhibit D attached hereto in order for the HRA to carry out the purposes of the Plan, as modified, the Act and the Contract, to deal with properties that are structurally substandard, and to eliminate and prevent the development or spread of conditions of blight found to exist by the City and the HRA. 2. Acquisition of the Omitted Property by eminent domain, in the manner provided by Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is hereby authorized. 3. The HRA deems it necessary for the reasons set forth in the Plan, as modified, and in order to meet anticipated construction schedules, to proceed without undue delay to commence condemnation of the Omitted Property; provided, however, that no action shall be served or filed until the Executive Director has been notified that the Redeveloper has fully complied with the requirements of Sections 3.2(c) and 3.4 of the Contract. 4. The HRA's attorney and staff are authorized to commence and prosecute to completion eminent domain proceedings to acquire fee simple absolute title to the Omitted Property, pursuant to Minn. Stat. Ch. 117 and § 117.042. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of June, 2003. Thomas E. Harms, Chairperson ATTEST: Mike Sandahl, Secretary RJL-231157v1 RC125-212 EXHIBIT A Legal Description of Property Proposed to be Redeveloped as Part of City Bella Project Lots 1 and 2, Block 1; Lots 11 to 17 inclusive, Block 1, Fairwood Shores, according to the plat thereof on file or of record in the Office of the Registrar of Titles in and for Hennepin County, Minnesota. Lots 3, 4 and 18; Lot 19, except that part of the North 5.0 feet thereof lying East of a line drawn South at right angles to the North line of said Lot from a point thereon distant 32.0 feet West of the Northeast corner of said Lot; and except that part of the Easterly 10.0 feet of said Lot lying Northeasterly of a line drawn Northwesterly at right angles to the Easterly line of said Lot from a point thereon distant 52.0 feet South of the Northeast corner thereof, Block 1, Fairwood Shores, according to the plat thereof on file or of record in the Office of the Registrar of Titles in and for said County. Lots 1, 2 and 3, Block 2, Fairwood Shores. Lots 1 and 2, Block 3, "Fairwood Shores". Lots 3, 4 and 5, Block 3, Fair-wood Shores. Lot 16, Block 3, "Fair-wood Shores", according to the plat thereof on file and of record in the Office of the Registrar of Titles in and for said County of Hennepin, State of Minnesota. Lot 17, Block 3, Fairwood Shores, according to the plat thereof on file or of record in the Office of the Registrar of Titles in and for said County. Lot 18, Block 3, "Fairwood Shores" Those portions of Auto Lane and Lake View Walk, vacated or to be vacated, accruing to Condominium No. 353, commonly known as Lake Shore Drive Condominium. Those portions of Graham Avenue and Circle Place, vacated or to be vacated, lying Southeasterly of a line commencing on the most Easterly corner of Lot 6, Block 3, Fairwood Shores and ending at the Southwesterly corner of Lot 11, Block 1, Fairwood Shores, accruing to Condominium No. 353, commonly known as Lake Shore Drive Condominium. RJL-231157v1 A-1 RC125-212 Those portions of Lakeview Walk and Auto Lane, vacated or to be vacated, accruing to Lot 1, Block 1, Gramercy Park Richfield. Those portions of Graham Avenue and Auto Lane, vacated or to be vacated, accruing to Lots 1 and 2, Block 3, Fairwood Shores. Those portions of Graham Avenue and Circle Place vacated or to be vacated, accruing to Lots 1, 2 and 3, Block 2, Fairwood Shores. Those portions of Auto Lane, vacated or to be vacated, accruing to Lot 17, Block 3, Fairwood Shores. RJL-231157v1 A-2 RC125-212 EXHIBIT B Legal Description of Portions of Property to be Redeveloped as Part of City Bella Project Which are to be Acquired by the HRA's Use of Condemnation ~"Remaining Properties") Parcel 1: Lots 1, 2 and 3, Block 2, Fairwood Shores, according to the map or plat thereof on file in the Office of the Registrar of Titles in and for Hennepin County, Minnesota Together with adjacent street or alleys vacated or to be vacated, accruing thereto. Being registered property pursuant to Certificate of Title No. 715782. Owner: Sharon Trestman Address of Property: 6630 Lyndale Avenue South Property Tax Identification No.: 27-028-24-32-0005 Parcel 2: Lots 1 and 2, Block 3, Fairwood Shores, according to the map or plat thereof on file in the Office of the Registrar of Titles in and for Hennepin County, Minnesota Together with adjacent street or alleys vacated or to be vacated, accruing thereto. Being registered property pursuant to Certificate of Title No. 770971. Owner: Triple S. Investments, a Minnesota general partnership Address of Property: 6700 Lyndale Avenue South Property Tax Identification No.; 27-028-24-32-0006 Parcel 3; Lot 17, ,Block 3, Fairwood Shores, according tq the map or plat thereof on fife in the Qffice of the Registrar of Titles in -and fore Hennepin County, Minnesota Together with adjacent street or alleys vacated. or to be vacated, accruing thereto: Being registered property pursuant to Certificate of Title NQ, 684656, Owner: Lake Shore Drive Condominium Association, a Minnesota non- profit corporation RJL-231157v1 C-1 RC125-212 Address of Property: 6633 Lake Shore Drive Property Tax Identification No.: 28-028-24-41-0016 Parcel 4: Those portions of Auto Lane and Lake View Walk, vacated or to be vacated, accruing to Condominium No. 353, commonly known as Lake Shore Drive Condominium. Parcel 5: Those portions of Graham Avenue and Circle Place, vacated or to be vacated, lying Southeasterly of a line commencing on the most Easterly corner of Lot 6, Block 3, Fairwood Shores and ending at the Southwesterly corner of Lot 11, Block 1, Fairwood Shores, accruing to Condominium No. 353, commonly known as Lake Shore Drive Condominium. Parcel 6: Those portions of Lakeview Walk and Auto Lane, vacated or to be vacated, accruing to Lot 1, Block. 1, Gramercy Park Richfield. Parcel 7: Those portions of Graham Avenue and Auto Lane, vacated or to be vacated, accruing to Lots 1 and 2, Block 3, Fairwood Shores. Parcel 8: Those portions of Graham Avenue and Circle Place vacated or to be vacated, accruing to Lots I, 2 and 3, Block 2, Fairwood Shores. Parcel 9: Those portions of Auto Lane, vacated or to be vacated, accruing to Lot 17, Block 3, Fairwood Shores. RJL-231157v1 C-2 RC125-212 EXHIBIT C Legal Description of Property Needed for City Bella Redevelopment and Not Included in Previous Eminent Domain Resolution ("Omitted Property") Parce110: That part of vacated Lake Shore Drive, as dedicated in the plat of FAIRWOOD SHORES, Hennepin County, Minnesota, which lies northwesterly of the northwesterly line of Lot 1, Block 1, GRAMERCY PARK RICHFIELD, which lies southeasterly of the center line of Lake View Walk, said FAIRWOOD SHORES, and its southwesterly extension, and which lies northeasterly of a line drawn from the most westerly corner of said Lot 1 to a point on the southwesterly line of Lot 17, Block 3, said FAIRWOOD SHORES, distant 42.31 feet northwesterly, measured along said southwesterly line, from the most southerly corner of said Lot 17. Together with adjacent streets and alleys, vacated or to be vacated, accruing thereto, and together with appurtenant easements. Being registered land pursuant to Certificate of Title No. 1055215, Office of the Registrar of Titles, Hennepin County, Minnesota RJL-231157v1 C-3 RC125-212 C. FINANCIAL • It has been the HRA policy that the property must be sold at its appraised value. • The property was recently appraised for $530,000. • Upon their preliminary financial analysis, Culver's feels it would be financially feasible for them to pay $530,000 for the property. D. LEGAL • The preliminary site plan developed by Culver's appears to conform to the cross-access and parking agreements that have been established with the Candlewood Hotel. IV. ALTERNATIVE RECOMMENDATION(S~ • Delay any further direction to staff until a later meeting in order to gather more information. • Direct staff to market the other potential users however, Culver's appears to be a viable user. V. ATTACHMENTS • A copy of a preliminary site plan from the prospective developer. • Photographs of the Culver's in Chaska (developed by the same franchisee). VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Bob Corsin, owner of Culver's of Chaska obod~~da 3NIl oos -~~ 2 z O a~ OaC uzi °- ~Q N °v (f Z oWC g ~ ~o ~ > X J V~ a °w® a ~~ a u W . a a U ~ a or. O ~ w ~" r .8'Z6 L ~~ ;~~~, JNIAtld 31380N00 \ ~ \\ ,~ ,.c~:•:i M fA 4,5'i8 ~Q~aNE BEET :~ ~.. ~• n 3dtl9SONtll, • a , r _ • ~ ~ ,81 o .. ,~.~ ch . ~ ~~ ~'''~ co ,g `` ,e, ~\ ,e3 00 N ~• `\ r' ~ ~ ``1T "'1 1 l ~ v V r ~s'zt .~ .- co mF N n ~ ~ ~9 ~' M ., *- J ~ • ~D ~ W fl U1 ' ' M d' • ~ '• ~ . .L'094 Culver's, Chanhassen Culver's, Chaska 2/03 City of Richfield Community Development AGENDA ITEM # 4 REPORT # 3 6 ~J STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 16, 2003 REPORT PREPARED BY: KATIA MEDVETSKI, REDEVELOPMENT SPECIALIST NAME, TITLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: d ITEM FOR HRA CONSIDERATION: Consideration of a presentation of the attached Richfield Housing and Redevelopment Authorit Annual Tax Increment District Status U date. RECOMMENDED ACTION: By Motion: Accept the attached Richfield Housing and Redevelopment Authority Annual Tax Increment District Status Update. II. BACKGROUND With legislative changes to property tax class rates behind us and critical planning in place to mitigate its financial impacts, the Housing and Redevelopment Authority's (HRA) financial consultants, Ehlers & Associates, Inc. and staff are pleased to report that the HRA continues to be able to meet all of its tax increment obligations. The attached Annual Tax Increment District Status Update provides in detail district summary and cash flow information. Below is a summary of the conclusions of the report. 1. The HRA will be able to meet all of its Pay As You Go Note and all of its General Obligation Tax Increment Bond obligations. 0616TifStat.doc 2. The Lyndale-Hub-Nicollet (LHN) District closed as of December 31, 2002. All taxes generated from the former district will now be distributed to the various taxing jurisdictions according to their individual levies. 3. The Interstate-Lyndale-Nicollet (ILN) District meets all of its obligations through the year 2006. Beginning in 2007, tax increment pooled from other districts (Interchange district/Galyans project and Richfield Rediscovered/Pre-1999 districts) will assist the ILN District to continue to meet its future obligations. 4. Within the Lyndale Gateway component of the Interchange West/Lyndale Gateway District, the Casteel Place Townhouse project carrying costs came in lower than expected. As a result, a lesser amount of tax increment is needed as a pay back to the developer. The cost savings of this project was passed on to The Cornerstone Group redevelopment project within the Lyndale Gateway West District as an additional funding resource. 5. The Housing Fund continues to build up revenue as two districts (Gramercy and Urban Village) actively contribute to the fund. In the future, two additional districts (City Bella and Interchange West component/Best Buy project of the Interchange West/Lyndale Gateway) will begin contributing to the fund to ensure continued housing opportunities to the Richfield community. 6. The ability to use increment to pay a limited amount of administrative costs assists the HRA with its budgeted tax increment project activities. III. BASIS OF RECOMMENDATION A. POLICY The annual report is provided to the HRA to summarize tax increment district cash flow activity and comment on the status of the HRA's ability to meet its financial tax increment projects obligations. B. CRITICAL ISSUES • The report indicates that the HRA will be able to meet all of its current and future tax increment project obligations. C. FINANCIAL • See detailed report. D. LEGAL The are no legal issues related to this year's report. TERNATIVE • Delay the presentation of the repor[. • Reject the conclusions made in the report and direct staff on how to proceed in presenting this material. V. ATTACHMENTS ~ • Annual I ax increme VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ • Mr. Sid Inman, Ehlers & Associates, Inc. RICHFIELD HRA TAX INCREMENT DISTRICT STATUS UPDATE Dated: June 2003 E H LE RS ~. nssoci~~-es inc Prepared by Ehlers/Publicorp, Inc N:\Minnsota\Richfield\STATUS REPORT-2003\UPDA2003-1.rtf OVERALL DISTRICT UPDATE 1. CONCLUSION The HRA will be able to meet all of its tax increment obligations. 2. RICHFIELD REDEVELOPMENT PROJECT AREA The 2002 tax law changes resulted in a reduction in the tax capacity class rates and a removal of the education tax rate from the normal property taxes. These changes resulted in a 30% to 40% reduction in the tax increment that the HRA has to pay its obligations. The HRA has two types of obligations. The first type of obligation is Pay As You Go Revenue Notes. All of these Notes pledge to the holder a certain percent of the available tax increment from the specific district. Having less tax increments results in a lower Pay As You Go payment. Current projections show that the HRA will be able to meet all of its Pay As You Go Revenue Note obligations. The second type of obligation is General Obligation Tax Increment Bonds. Two years ago when the State Legislature began considering the above mentigned law changes, the HRA started reserving cash to prepare for the changes. Also, the 2002 tax law changes allows the HRA to share tax increment (pooling) from all tax increment districts to help pay General Obligation Tax Increment Bond obligations. Current projections show that the HRA will be able to meet all of its General Obligation Tax Increment Bond obligations 3. ASSUMPTIONS All projections are based on the most conservative assumptions. The calculations, except for Interchange West (Best Buy), Lyndale Gateway West (Cornerstone), and Lyndale Gateway (Richfield Senior Housing), do not include any interest on invested cash or inflation on property market values. Interchange West uses a 1.725% market value inflation assumption. Lyndale Gateway West uses a 1.0% market value inflation assumption. Lyndale Gateway (Richfield Senior Housing) uses a 3% market value inflation assumption. Richfield HRA Tax Increment District Status Update Page 1 LYNDALE-HUB-NICOLLET (LHN) DISTRICT UPDATE 1. The LHN District was closed as of 12/31/2002. Richfield HRA Tax Increment District Status Update Page 2 INTERSTATE-LYNDALE-1vICOLLET (II.,1~ DISTRICT UPDATE 1. The ILN District has four Pay As You Go Revenue Notes, the pooled General Obligation Tax Increment Bonds of 1996 and the Candlewood General Obligation Tax Increment Bonds. In 2000, the City sold bonds based on the Candlewood Hotel tax increment. The proceeds are being used to assist the Lyndale Gateway West project. In 1996, the City sold bonds for various HRA projects (pooled LHN and ILN bonds). Since the LHN District closed in 2002, the ILN District services debt on these bonds. These bonds were refunded in 2002 to achieve a lower interest rate and, therefore, use less tax increment. The HRA will be able to meet all of its Pay As You Go Revenue Notes and General Obligation Tax Increment Bonds obligations. 2. The ILN Tax Increment District has a cash balance of $1,500,000. The cash balance will be used to pay the ILN bonds. 3. The Galyans and Richfield Rediscovered (Pre-1999) TIF Districts will pool increment to the ILN TIF District to support ILN note payable and bond obligations. Richfield HRA Tax Increment District Status Update Page 3 CEDAR AVENUE BUSINESS AREA (CABA) DISTRICT UPDATE CABA was an economic development district that ended in 1996. No more increment will be received from this District. 2. All accounting transactions to close out the District were completed by December 31, 2000. Richfield HRA Tax Increment District Status Update Page 4 PENN AVENUE AND SIXTY-SIXTH STREET (PASSS) DISTRICT UPDATE 1. The PASSS TIF District was established in 1989. 2. The PASSS TIF District was terminated in 1996 due to a lack of feasible redevelopment opportunities. Richfield HRA Tax Increment District Status Update Page 5 INTERCHANGE (GALYANS) DISTRICT UPDATE 1. The Interchange District is comprised of the Galyans Trading Company Store. 2. The Galyans Project began generating full taxes for taxes payable in 2000. 3. Tax increments are pledged to the project to assist with acquisition of property. In 2001, tax increment payments were assigned to be paid directly to Galyans Trading Company. 4. The Interchange District has a cash balance of $170,000. Richfield HRA Tax Increment District Status Update Page 6 PRE-1999 RICHFIELD REDISCOVERED DISTRICTS iJPDATE Funds in the amount of $762,550 were advanced to the Richfield Rediscovered Program in 1990 from the City and HRA to establish abuy/sell program for the construction of new, contemporary, single-family housing. All advances have been satisfied. 2. At the end of 1999, the City sold tax increment bonds to fund the new Richfield Rediscovered Projects beginning with the year 2000. Fifteen percent (15%) of the annual tax increment from the Pre-1999 Districts will be used to pay debt service on those bonds. 3. The Pre-1999 Richfield Rediscovered Districts have a cash balance of $150,000. Richfield HRA Tax Increment District Status Update Page 7 POST-1999 RICHFIELD REDISCOVERED DISTRICTS UPDATE In November of 1999, the City sold General Obligation Tax Increment Bonds to fund the new Richfield Rediscovered Projects. These bonds were refunded in 2002 to achieve a lower interest rate and, therefore, use less tax increment. 2. Fifteen percent (15%) of the annual tax increment from the Pre-1999 Richfield Rediscovered Districts is being used to pay debt service on these bonds. In addition, all land sale proceeds contribute to pay off the bonds. The remainder of the debt service will be paid back from the Housing Fund and tax increment from the Post-1999 Richfield Rediscovered Districts. 3. The Housing Fund is a revenue source comprised of tax increment from the Gramercy, Urban Village Interchange West/Lyndale Gateway (Best Buy) and City Bella TIF Districts. The purpose of the Housing Fund is to fund a variety of housing needs for the community, including but not limited to, new construction ofsingle-family homes, townhomes, single-family home renovation and rehabilitation, and apartment rehabilitation. Richfield HRA Tax Increment District Status Update Page 8 URBAN VILLAGE DISTRICT UPDATE 1. The Urban Village District is a mixed-use redevelopment project. 2. The Urban Village District began generating full tax increment in 2002. 3. Tax increments are pledged to the projects to assist with acquisition of property and excess site development costs. 4. Fifteen percent (15%) of the annual tax increment from the Urban Village District is being used to fund the Housing Fund. Richfield HRA Tax Increment District Status Update Page 9 GF;AMERCY DISTRICT UPDATE* The Gramercy Park Senior Housing Cooperative project began generating full taxes in 2002. 2. Tax increments are pledged to the project to assist with acquisition of property. 3. Fifteen percent (15%) of the annual tax increment from the Gramercy District will be used to fund the Housing Fund. * Gramercy District now only encompasses the Gramercy Park Senior Housing Cooperative and VFW club. In 2002, a portion of the Gramercy site area was eliminated and incorporated into the City Bella Project. Richfield HRA Tax Increment District Status Update Page 10 CITY BELLA DISTRICT UPDATE* 1. The City Bella project is a housing project with a retail component. 2. Tax increments are pledged to the project to assist with acquisition of property and site improvements. 3. Beginning in 2006, fifteen percent (15%) of the annual tax increment from the City Bella District will be used to fund the Housing Fund *In 2002, a portion of the Gramercy District was eliminated and incorporated into the City Bella Project. Richfield HRA Tax Increment District Status Update Page 11 INTERCHANGE WEST/LYNDALE GATEWAY DISTRICT UPDATE* LYNDALE GATEWAY The Lyndale Gateway component of the Interchange West/Lyndale Gateway District is comprised of the Richfield Senior Housing project and Minnstar Builders, Inc. project (Casteel Place Townhouses.) The Lyndale Gateway component began generating full tax increment in 2002. The Lyndale Gateway component has two Pay As You Go Revenue Notes. Tax increments are pledged to the Lyndale Gateway component to assist with site assembly activities. 4. In addition to the Pay As You Go Revenue Note, Richfield Senior Housing, Inc. was given a $338,251.76 loan from the HRA to cover an unexpected condemnation award in acquiring the redevelopment property. The developer is paying the loan back with monthly payments that started in May of 2002 and will end with the last payment in August 2010. The interest rate on the loan is 6.5% 5. The Contract for Private Redevelopment between the HRA and Minnstar Builders, Inc. includes a "look back" provision that requires a review of the developer's costs. To the extent that certain costs would go down or come under the estimate, the associated Pay As You Go Revenue Note would be reduced by a like amount. The analysis for the "look back" provision was completed last year. Due to a reduction in estimated costs, the Pay As You Go Revenue Note was reduced from an original amount of $100,000 to a new amount of $19,985.23. The cost savings of this tax increment was then used as additional gap funding for the Cornerstone redevelopment project in the Lyndale Gateway West District. INTERCFIANGE WEST 1. The Interchange West component of the Interchange West/Lyndale Gateway District is comprised of the Best Buy Corporate Headquarters project. 2. The Best Buy project is anticipated to begin generating full tax increment in 2004. 3. Tax increments are pledged to the Best Buy project to assist with site assembly activities. 4. A set dollar amount of funds from the Interchange West portion of the District will be used to fund the Housing Fund. * Part of Lyndale Gateway District was eliminated in 2002 and incorporated into the new Lyndale Gateway West TIF District for the Cornerstone Project. Richfield HRA Tax Increment District Status Update Page 12 LYNDALE GATEWAY WEST DISTRICT UPDATE* 5. The Lyndale Gateway West District is comprised of the Cornerstone mixed-use redevelopment project. 6. The Lyndale Gateway West District is estimated to begin generating full tax increment in 2006. 7. Tax increments are pledged to the project to assist with site assembly activities. 8. The District will have two general obligation bonds totaling $6,000,000. $3,000,000 of the bonds will be paid back with tax increment generated by the project and $3,000,000 will be paid back by townhome sales. 9. The District will have a $1,100,0001oan from the ILN District. $600,000 of the loan will be paid back from tax increment. $500,000 of the loan will be paid back by the developer. The interest on the total $1,'100,000 will be paid back from tax increment. 10. Tax increment from the Minnstar Builders townhouse project in the Lyndale Gateway District is being used to pay obligations related to the Cornerstone project * Part of the Lyndale Gateway District was eliminated in 2002 and incorporated into the new Lyndale Gateway West TIF District for the Cornerstone Project. Richfield HRA Tax Increment District Status Update Page 13 6/3/03 RICHFIELD HRA - 2003 STATUS REPORT InL@r8iaie - Lynaale - nIC011@L pl-n) - l.0unry rrOJ6ci ii ~ LCl7 F.,rMENT Pooling C.S.M. C.S.M. TOLD TOLD Candle Wood Existing Bond Net Tax DATE Gross Tax Tax Admin. Phase I Phase II Phase I Phase II Bond Payments Increment MT YEAR Increment Increment 10.00% PAYG PAYG PAYG PAYG 2000 1996/2002 End Of Year BALANCE 1,500,000 8/1 2003 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (31,901) (60,636) 1,508,586 2/1 2004 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (146,901) (256,248) 1,206,560 8/1 2004 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (29,256) (44,148) 1,234,279 2/1 2005 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (154,256) (279,148) 901,997 8/1 2005 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (26,288) (41,328) 935,505 2/1 2006 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (156,288) (291,328) 589,013 8/1 2006 647,139 0 (64,714) (87,322) (76,099) (162,389) (155,492) (23,168) (37,578) 629,390 2/1 2007 647,139 177,000 0 (87,322) (76,099) (162,389) (155,492) (158,168) (297,578) 516,482 8/1 2007 647,139 339,259 0 (87,322) (76,099) (162,389) (155,492) (19,894) (33,158) 968,526 2/1 2008 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (164,894) (308,158) 699,052 8/1 2008 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (16,341) (28,070) 858,218 2/1 2009 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (166,341) (318,070) 577,384 8/1 2009 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (12,629) (22,125) 746,208 2/1 2010 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (172,629) (327,125) 450,031 8/1 2010 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (8,629) (15,415) 629,565 2/1 2011 647,139 37,741 0 (87,322) (76,098) (162,388) (155,492) (173,629) (340,415) 319,098 8/1 2011 647,139 37,741 0 (87,322) (76,099) (162,389) (155,492) (4,463) (8,021) 510,192 2/1 2012 647,139 0 64,714 87,322 6,099 162,389 155,492 179,463 353,021 78,831 11,648,493 818,185 517,711 1,571,796 1,369,782 2,923,002 2,798,856 1,645,135 3,061,566 78,831 ASSI IMPTICINS NO ADMINISTRATION TAKEN DURING POOLIN No Interest Income No Market Value Inflation ---~ Page 1 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 613/03 RICHFIELD HRA - 2003 STATUS REPORT Interchan e - Coun Pro ect # 1271 P~"MENT Galyans Pooling Net Tax Gross Tax Administration Tax Increment ..,i YEAR Increment 10.36% PAYG Increment End Of Year BALANCE 177,000 8/1 2003 75,692 (7,814) (67,877) 0 177,000 2/1 2004 75,692 (7,814) (67,877) 0 177,000 8/1 2004 75,692 (7,814) (67,877) 0 177,000 2/1 2005 75,692 (7,814) (67,877) 0 177,000 8/1 2005 75,692 (7,814) (67,877) 0 177,000 2/1 2006 75,692 (7,814) (67,877) 0 177,000 8/1 2006 75,692 (7,814) (67,877) 0 177,000 2/1 2007 75,692 (7,814) (67,877) (177,000) 0 8/1 2007 75,692 (7,814) (67,877) 0 0 2/1 2008 75,692 (7,814) (67,877) 0 0 8/1 2008 75,692 (7,814) (67,877) 0 0 2/1 2009 75,692 (7,814) (67,877) 0 0 8/1 2009 75,692 (7,814) (67,877) 0 0 2/1 2010 75,692 (7,814) (67,877) 0 0 8/1 2010 75,692 (7,814) (67,877) 0 0 2/1 2011 75,692 (7,814) (67,877) 0 0 8/1 2011 75,692 (7,814) (67,877) 0 0 2/1 2012 75,692 (7,814) (67,877) 0 0 8/1 2012 75,692 (7,814) (67,877) 0 0 2/1 2013 75,692 (7,814) (67,877) 0 0 8/1 2013 75,692 (7,814) (67,877) 0 0 2/1 2014 75,692 (7,814) (67,877) 0 0 8/1 2014 75,692 (7,814) (67,877) 0 0 2/1 2015 75,692 (7,814) (67,877) 0 0 8/1 2015 75,692 (7,814) (67,877) 0 0 2/1 2016 75,692 (7,814) (67,877) 0 0 8/1 2016 75,692 (7,814) (67,877) 0 0 2/1 2017 75,692 (7,814) (67,877) 0 0 8/1 2017 75,692 (7,814) (67,877) 0 0 2/1 2018 75,692 (7,814) (67,877) 0 0 4~1 2018 75,692 (7,814) (67,877) 0 0 2019 75,692 7,814 67,877 0 0 2,422,132 109,402 2,172,071 177,000 0 ASSUMPTIONS No Interest Income No Market Value Inflation Page 2 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 6/3/03 RICHFIELD HRA- 2003 STATUS REPORT Richfield Rediscovered Pre-1999 - Coun Pro'ect # 1254-1270, 1272-1274, 1276-1279 F SENT Post 1999 Pooling Net Tax L Gross Tax Admin. RR Bond Tax Increment MT YEAR Increment 10.36% 15.00% Increment End Of Year BALANCE 0 8/1 2003 50,261 (5,008) (7,512) 0 37,741 2/1 2004 50,261 (5,008) (7,512) 0 75,481 8/1 2004 50,261 (5,008) (7,512) 0 113,222 2/1 2005 50,261 (5,008) (7,512) 0 150,963 8/1 2005 50,261 (5,008) (7,512) 0 188,704 2/1 2006 50,261 (5,008) (7,512) 0 226,444 8/1 2006 50,261 (5,008) (7,512) 0 264,185 2/1 2007 50,261 (5,008) (7,512) 0 301,926 8/1 2007 50,261 (5,008) (7,512) (339,259) 407 2/1 2008 50,261 (5,008) (7,512) (37,741) 407 8/1 2008 50,261 (5,008) (7,512) (37,741) 407 2/1 2009 50,261 (5,008) (7,512) (37,741) 407 8/1 2009 50,261 (5,008) (7,512) (37,741) 407 2/1 2010 50,261 (5,008) (7,512) (37,741) 407 8/1 2010 50,261 (5,008) (7,512) (37,741) 407 2/1 2011 50,261 (5,008) (7,512) (37,741) 407 8/1 2011 50,261 (5,008) (7,512) (37,741) 407 2/1 2012 50,261 (5,008) (7,512) 0 38,148 8/1 2012 50,261 (5,008) (7,512) 0 75,889 2/1 2013 50,261 (5,008) (7,512) 0 113,630 8/1 2013 50,261 (5,008) (7,512) 0 151,370 2!1 2014 50,261 (5,008) (7,512) 0 189,111 8/1 2014 50,261 (5,008) (7,512) 0 226,852 2/1 2015 50,261 (5,008) (7,512) 0 264,593 8/1 2015 50,261 (5,008) (7,512) 0 302,333 2/1 2016 50,261 (5,008) (7,512) 0 340,074 8/1 2016 50,261 (5,008) (7,512) 0 377,815 2/1 2017 50,261 (5,008) (7,512) 0 415,556 8/1 2017 50,261 (5,008) (7,512) 0 453,296 '~1 2018 50,261 (5,008) (7,512) 0 491,037 2018 50,261 (5,008) (7,512) 0 528,778 i 2019 50,261 5,008 7,512 0 566,519 1,608,342 (70,112) (240,383) (641,185) 566,519 ASSUMI' I IVNb' No Interest Income No Market Value Inflation Page 3 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 8/3103 RICHFIELD HRA- 2003 STATUS REPORT Richfield Rediscovered 1999 Post-1999 - Coun Pro'ect # 1283-7284 P4~dIENT Debt Housing Net Tax ( Gross Tax Admin. Payment Pool Increment YEAR Increment 10.00% End Of Year BALANCE 0 8/1 2003 10,648 (1,103) (66,533) 56,988 0 2/1 2004 10,648 (1,103) (20,858) 11,313 0 811 2004 10,648 (1,103) (70,858) 61,313 0 2/1 2005 10,648 (1,103) (20,108) 10,563 0 8/1 2005 10,648 (1,103) (70,108) 60,563 0 2/1 2006 10,648 (1,103) (19,233) 9,688 0 8/1 2006 10,648 (1,103) (74,233) 64,688 0 2/1 2007 10,648 (1,103) (18,270) 8,725 0 8/1 2007 10,648 (1,103) (78,270) 68,725 0 2/1 2008 10,648 (1,103) (17,070) 7,525 0 8/1 2008 10,648 (1,103) (77,070) 67,525 0 2/1 2009 10,648 (1,103) (15,810) 6,265 0 8/1 2009 10,648 (1,103) (80,810) 71,265 0 2/1 2010 10,648 (1,103) (14,348) 4,803 0 811 2010 10,648 (1,103) (84,348) 74,803 0 2/1 2011 10,648 (1,103) (12,685) 3,140 0 8/1 2011 10,648 (1,103) (87,685) 78,140 0 2/1 2012 10,648 (1,103) (10,810) 1,265 0 8/1 2012 10,648 (1,103) (85,810) 76,265 0 2/1 2013 10,648 (1,103) (8,935) (610) 0 8/1 2013 10,648 (1,103) (88,935) 79,390 0 2/1 2014 10,648 (1,103) (6,935) 0 2,610 8/1 2014 10,648 (1,103) (91,935) 82,390 2,610 2/1 2015 10,648 (1,103) (4,810) 0 7,345 8/1 2015 10,648 (1,103) (94,810) 85,265 7,345 2/1 2016 10,648 (1,103) (2,470) 0 14,420 8/1 2016 10,648 (1,103) (97,470) 87,925 14,420 2/1 2017 10,648 (1,103) 0 0 23,964 8/1 2017 10,648 (1,103) 0 0 33,509 2/1 2018 10,648 (1,103) 0 0 43,054 2018 10,648 (1,103) 0 0 52,599 2019 10,648 (1,103) 0 0 62,144 8/1 2019 10,648 (1,103) 0 0 71,689 2/1 2020 10,648 (1,103) 0 0 81,234 8/1 2020 10,648 (1,103) 0 0 90,779 Z1 2021 10,648 (1,103) 0 0 100,323 8/1 2021 10,648 (1,103) 0 0 109,868 2/1 2022 10,648 1,103 0 0 119,413 404,624 (22,063 (1,321,213) 1,077,921 119,413 ASSUMPTIONS No Interest Income No Market Value Inflation Page 4 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 6/3/03 RICHFIELD HRA - 2003 STATUS REPORT Urban Vllla e - Coun Pro'ect # 1280 P•"MENT Housing Local Payment Payment Net Tax Gross Tax Admin. Fund Match A B Increment .~ r YEAR Increment 10.00% 15.00% 5.00% PAYG PAYG End Of Year BALANCE 0 8/1 2003 257,095 (25,709) (38,564) 12,855 (111,671) (94,005) 0 2/1 2004 257,095 (25,709) (38,564) 12,855 (110,401) (95,275) 0 8/1 2004 257,095 (25,709) (38,564) 12,855 (109,131) (96,545) 0 2/1 2005 257,095 (25,709) (38,564) 12,855 (107,861) (97,815) 0 8/1 2005 257,095 (25,709) (38,564) 12,855 (106,591) (99,085) 0 2/1 2006 257,095 (25,709) (38,564) 12,855 (107,321) (98,355) 0 8/1 2006 257,095 (25,709) (38,564) 12,855 (105,995) (99,681) 0 2/1 2007 257,095 (25,709) (38,564) 12,855 (104,669) (101,007) 0 8/1 2007 257,095 (25,709) (38,564) 12,855 (103,343) (102,333) 0 211 2008 257,095 (25,709) (38,564) 12,855 (102,017) (103,659) 0 8/1 2008 257,095 (25,709) (38,564) 12,855 (100,691) (104,985) 0 2/1 2009 257,095 (25,709) (38,564) 12,855 (99,365) (106,311) 0 8/1 2009 257,095 (25,709) (38,564) 12,855 (100,039) (105,637) 0 2/1 2010 257,095 (25,709) (38,564) 12,855 (98,657) (107,019) 0 8/1 2010 257,095 (25,709) (38,564) 12,855 (97,275) (108,401) 0 2/1 2011 257,095 (25,709) (38,564) 12,855 (95,893) (109,783) 0 8/1 2011 257,095 (25,709) (38,564) 12,855 (94,511) (111,165) 0 2/1 2012 257,095 (25,709) (38,564) 12,855 (93,129) (112,547) 0 8/1 2012 257,095 (25,709) (38,564) 12,855 (91,747) (113,929) 0 2/1 2013 257,095 (25,709) (38,564) 12,855 (92,365) (113,311) 0 8/1 2013 257,095 (25,709) (38,564) 12,855 (90,927) (114,749) 0 2/1 2014 257,095 (25,709) (38,564) 12,855 (89,489) (116,187) 0 8!1 2014 257,095 (25,709) (38,564) 12,855 (88,051) (117,625) 0 2/1 2015 257,095 (25,709) (38,564) 12,855 (86,613) (119,063) 0 8/1 2015 257,095 (25,709) (38,564) 12,855 (85,175) (120,501) 0 2/1 2016 257,095 (25,709) (38,564) 12,855 (83,737) (121,939) 0 8!1 2016 257,095 (25,709) (38,564) 12,855 (84,299) (121,377) 0 2/1 2017 257,095 (25,709) (38,564) 12,855 (82,805) (122,871) 0 8/1 2017 257,095 (25,709) (38,564) 12,855 (81,311) (124,365) 0 2/1 2018 257,095 (25,709) (38,564) 12,855 (79,817) (125,859) 0 °~1 2018 257,095 (25,709) (38,564) 12,855 (78,323) (127,353) 0 2019 257,095 (25,709) (38,564) 12,855 (76,830) (128,846) 0 _, t 2019 257,095 (25,709) (38,564) 12,855 (75,336) (130,340) 0 2/1 2020 257,095 (25,709) (38,564) 12,855 (75,842) (129,834) 0 8/1 2020 257,095 (25,709) (38,564) 12,855 (74,292) (131,384) 0 2/1 2021 257,095 (25,709) (38,564) 12,855 (72,742) (132,934) 0 8/1 2021 257,095 (25,709) (38,564) 12,855 (71,192) (134,484) 0 2/1 2022 257,095 (25,709) (38,564) 12,855 (69,642) (136,034) 0 8/1 2022 257,095 (25,709) (38,564) 12,855 (68,092) (137,584) 0 2/1 2023 257,095 (25,709) (38,564) 12,855 (66,542) (139,134) 0 8/1 2023 257,095 (25,709) (38,564) 12,855 (66,992) (138,684) 0 2/1 2024 257,095 (25,709) (38,564) 12,855 (65,386) (140,290) 0 8/1 2024 257,095 (25,709) (38,564) 12,855 (63,780) (141,896) 0 2/1 2025 257,095 (25,709) (38,564) 12,855 (62,174) (143,502) 0 8/1 2025 257,095 (25,709) (38,564) 12,855 (60,568) (145,108) 0 2/1 2026 257,095 25,708 38,564 12,855 58,961 146,715 0 11,826,369 308,514 1,773,955 591,318 3,991,586 5,469,509 0 ASSUMPTIONS No Interest Income Page 5 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 613103 RICHFIELD HRA - 2003 STATUS REPORT Gramerc - Coun Pro ect # 1275 ~""'YlENT Housing Payment Net Tax Gross Tax Admin. Fund A Increment mt YEAR Increment 10.00% 15.00% PAYG End Of Year BALANCE 0 8/1 2003 160,505 (16,050) (24,077) (120,378) 0 2/1 2004 160,505 (16,050) (24,077) (120,378) 0 8/1 2004 160,505 (16,050) (24,077) (120,378) 0 2/1 2005 160,505 (16,050) (24,077) (120,378) 0 8/1 2005 160,505 (16,050) (24,077) (120,378) 0 2/1 2006 160,505 (16,050) (24,077) (120,378) 0 8/1 2006 160,505 (16,050) (24,077) (120,378) 0 2/1 2007 160,505 (16,050) (24,077) (120,378) 0 8/1 2007 160,505 (16,050) (24,077) (120,378) 0 2/1 2008 160,505 (16,050) (24,077) (120,378) 0 8/1 2008 160,505 (16,050) (24,077) (120,378) 0 2/1 2009 160,505 (16,050) (24,077) (120,378) 0 8/1 2009 160,505 (16,050) (24,077) (120,378) 0 2/1 2010 160,505 (16,050) (24,077) (120,378) 0 8/1 2010 160,505 (16,050) (24,077) (120,378) 0 2/1 2011 160,505 (16,050) (24,077) (120,378) 0 8/1 2011 160,505 (16,050) (24,077) (120,378) 0 2/1 2012 160,505 (16,050) (24,077) (120,378) 0 8/1 2012 160,505 (16,050) (24,077) (120,378) 0 2/1 2013 180,505 (16,050) (24,077) (120,378) 0 8!1 2013 160,505 (16,050) (24,077) (120,378) 0 2/1 2014 160,505 (16,050) (24,077) (120,378) 0 8/1 2014 160,505 (16,050) (24,077) (120,378) 0 2/1 2015 160,505 (16,050) (24,077) (120,378) 0 8/1 2015 160,505 (16,050) (24,077) (120,378) 0 211 2016 160,505 (16,050) (24,077) (120,378) 0 811 2016 160,505 (16,050) (24,077) (120,378) 0 2/1 2017 160,505 (18,050) (24,077) (120,378) 0 8/1 2017 160,505 (16,050) (24,077) (120,378) 0 2/1 2018 160,505 (16,050) (24,077) (56,430) 63,948 "'~ 2018 160,505 (16,050) (24,077) 0 184,326 2019 160,505 (16,050) (24,077) 0 304,704 ,.~ 1 2019 160,505 (16,050) (24,077) 0 425,082 2/1 2020 160,505 (16,050) (24,077) 0 545,460 8/1 2020 160,505 (16,050) (24,077) 0 665,838 2/1 2021 160,505 (18,050) (24,077) 0 786,216 811 2021 160,505 (16,050) (24,077) 0 906,594 2/1 2022 160,505 (16,050) (24,077) 0 1,026,972 8/1 2022 160,505 (16,050) (24,077) 0 1,147,350 2/1 2023 160,505 (16,050) (24,077) 0 1,267,728 8/1 2023 160,505 (16,050) (24,077) 0 1,388,106 2/1 2024 160,505 (16,050) (24,077) 0 1,508,484 8/1 2024 160,505 (16,050) (24,077) 0 1,628,862 2/1 2025 160,505 (16,050) (24,077) 0 1,749,240 8/1 2025 160,505 (16,050) (24,077) 0 1,869,618 2/1 2026 160,505 16,050 24,077 0 1,989,996 7,383,230 192,600 1,107,542 3,547,392 1,989,996 ASSUMPTIONS No Interest Income No Market Value InFlation Page 6 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 6/3/03 RICHFIELD HRA - 2003 STATUS REPORT L ndale Gatewa Minnstar Builders - Coun Pro ect # 1281 a"'`MENT Payment Net Tax : Gross Tax Admin. A Increment ~nT YEAR Increment 10.00% PAYG End Of Year BALANCE 0 8/1 2003 30,293 (3,029) (6,680) 20,584 2/1 2004 30,293 (3,029) (6,680) 41,167 8/1 2004 30,293 (3,029) (6,680) 61,751 2/1 2005 30,293 (3,029) (2,597) 86,418 8/1 2005 30,293 (3,029) 0 113,682 2/1 2006 30,293 (3,029) 0 140,945 8/1 2006 30,293 (3,029) 0 168,209 211 2007 30,293 (3,029) 0 195,473 8/1 2007 30,293 (3,029) 0 222,737 2/7 2008 30,293 (3,029) 0 250,000 8/1 2008 30,293 (3,029) 0 277,264 2/1 2009 30,293 (3,029) 0 304,528 8/1 2009 30,293 (3,029) 0 331,791 2/1 2010 30,293 (3,029) 0 359,055 8/1 2010 30,293 (3,029) 0 386,319 2/1 2011 30,293 (3,029) 0 413,582 8/1 2011 30,293 (3,029) 0 440,846 2/1 2012 30,293 (3,029) 0 468,110 8!1 2012 30,293 (3,029) 0 495,374 2/1 2013 30,293 (3,029) 0 522,637 8/1 2013 30,293 (3,029) 0 549,901 2/1 2014 30,293 (3,029) 0 577,165 8/1 2014 30,293 (3,029) 0 604,428 2/1 2015 30,293 (3,029) 0 631,692 8/1 2015 30,293 (3,029) 0 658,956 2/1 2016 30,293 (3,029) 0 686,219 8!1 2016 30,293 (3,029) 0 713,483 2/1 2017 30,293 (3,029) 0 740,747 8/1 2017 30,293 (3,028) 0 768,011 2/1 2018 30,293 (3,029) 0 795,274 "'1 2018 30,293 (3,029) 0 822,538 2019 30,293 (3,029) 0 849,802 ..,1 2019 30,293 (3,029) 0 877,065 2/1 2020 30,293 (3,029) 0 904,329 8/1 2020 30,293 (3,029) 0 931,593 2/1 2021 30,293 (3,029) 0 958,856 8/1 2021 30,293 (3,029) 0 986,120 2/1 2022 30,293 (3,029) 0 1,013,384 8/1 2022 30,293 (3,029) 0 1,040,648 2/1 2023 30,293 (3,029) 0 1,067,911 8/1 2023 30,293 (3,029) 0 1,095,175 2/1 2024 30,293 (3,029) 0 1,122,439 8/1 2024 30,293 (3,029) 0 1,149,702 2/1 2025 30,293 (3,029) 0 1,176,966 8/1 2025 30,293 (3,029) 0 1,204,230 2/1 2026 30,293 3,029 0 1,204,230 1,393,478 36,352 22,637 1,204,230 ASSUMPTIONS TIF NOT USED FOR PAYG NOTE IS PLEDGED TO LYNDALE GATEWAY WEST No Interest Income No Market Value Inflation Page 7 of 13 Prepared by Ehlers Pro20041-PST.xIs 6/3103 RICHFIELD HRA - 2003 STATUS REPORT L ndale Gatewa Richfield Senior Housin - Coun Pro'ect # 1281 ~ ""'a11ENT Payment Net Tax Gross Tax Admin. A Increment ~Nrr YEAR Increment 10.00% PAYG End Of Year BALANCE 0 8/1 2003 141,221 (14,122) (127,099) 0 2/1 2004 141,221 (14,122) (127,099) 0 8/1 2004 125,971 (12,597) (113,374) 0 2/1 2005 125,971 (12,597) (113,374) 0 8/1 2005 130,119 (13,012) (117,107) 0 2/1 2006 130,119 (13,012) (117,107) 0 8/1 2006 134,392 (13,439) (120,953) 0 2/1 2007 134,392 (13,439) (120,953) 0 8/1 2007 138,793 (13,879) (124,914) 0 2/1 2008 138,793 (13,879) (124,914) 0 8/1 2008 143,326 (14,333) (128,993) 0 2/1 2009 143,326 (14,333) (128,993) 0 8/1 2009 147,995 (14,799) (133,195) 0 Z1 2010 147,995 (14,799) (133,195) 0 8/1 2010 152,804 (15,280) (137,523) 0 2/1 2011 152,804 (15,280) (137,523) 0 8/1 2011 157,757 (15,776) (141,981) 0 2/1 2012 157,757 (15,776) (141,981) 0 8/1 2012 162,859 (16,286) (146,573) 0 2/1 2013 162,858 (16,286) (146,573) 0 8/1 2013 168,114 (16,811) (151,302) 0 2/1 2014 168,114 (16,811) (151,302) O 8/1 2014 173,526 (17,353) (156,174) 0 2/1 2015 173,526 (17,353) (156,174) 0 8/1 2015 179,101 (17,910) (161,191) 0 2/1 2016 179,101 (17,910) (161,191) 0 8/1 2016 184,843 (18,484) (166,359) 0 2/1 2017 184,843 (18,484) (166,359) 0 8/1 2017 190,758 (19,076) (171,682) 0 2/1 2018 190,758 (19,076) (171,682) 0 "'1 2018 196,850 (19,685) (177,165) 0 2019 196,850 (19,685) (177,165) 0 -3.1 2019 203,124 (20,312) (182,812) 0 2/1 2020 203,124 (20,312) (182,812) 0 8/1 2020 209,587 (20,959) (188,626) 0 2/1 2021 209,587 (20,959) (188,628) 0 8/1 2021 216,244 (21,624) (194,619) 0 2/1 2022 216,244 (21,624) (194,619) 0 8/1 2022 223,100 (22,310) (200,790) O 2/1 2023 223,100 (22,310) (200,790) 0 8/1 2023 230,162 (23,016) (207,146) 0 2/1 2024 230,162 (23,016) (207,146) 0 8/1 2024 237,436 (23,744) (213,693) 0 2/1 2025 237,436 (23,744) (213,693) 0 8/1 2025 244,929 (24,493) (220,436) 0 211 2026 244,929 24,493 220,436 0 8,186,022 272,292 7,367,420 0 ASSUMPTIONS TIF NOT USED FOR PAYG NOTE IS PLEDGED TO IYNDALE GATEWAY WEST No Interest Income 3.00°~ Market Value Inflation Page 8 of t3 Prepared by Ehlers Pro2004-1-PST.xIs 6/3/03 RICHFIELD HRA - 2003 STATUS REPORT City Bella -County Project # 1285 Land Housing Payment Payback Fund A net tax Increment ., E Gross Tax Admin. YEAR 8/1 2/1 S/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 Z1 811 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 °/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8!1 2/1 8/1 2/1 8/1 2/1 8/1 2/1 8/1 2003 0 0 0 0 0 2004 0 0 0 0 0 2004 0 0 0 0 0 2005 0 0 0 0 0 2005 0 0 0 0 0 2006 0 0 0 0 0 2006 381,719 (38,172) (57,258) 0 (286,289) 2007 381,719 (38,172) (57,258) 0 (286,289) 2007 381,719 (38,034) (57,258) 0 (286,427) 2008 381,719 (38,034) (57,258) 0 (286,427) 2008 381,719 (38,034) (57,258) 0 (286,427) 2009 381,719 (38,034) (57,258) 0 (286,427) 2009 381,719 (38,034) (57,258) 0 (286,427) 2010 381,719 (38,034) (49,194) (8,064) (286,427) 2010 381,719 (38,034) 0 (57,052) (286,633) 2011 381,719 (38,034) 0 (57,052) (286,633) 2011 381,719 (38,034) 0 (57,052) (286,633) 2012 381,719 (38,034) 0 (57,052) (286,633) 2012 381,719 (38,034) 0 (57,052) (286,633) 2013 381,719 (38,034) 0 (57,052) (286,633) 2013 381,719 (38,034) 0 (57,052) (286,633) 2014 381,719 (38,034) 0 (57,052) (286,633) 2014 381,719 (38,034) 0 (57,052) (286,633) 2015 381,719 (38,034) 0 (57,052) (286,633) 2015 381,719 (38,034) 0 (57,052) (286,633) 2016 381,719 (38,034) 0 (57,052) (286,633) 2016 381,719 (38,034) 0 (57,052) (286,633) 2017 381,719 (38,034) 0 (57,052) (286,633) 2017 381,719 (38,034) 0 (57,052) (286,633) 2018 381,719 (38,034) 0 (57,052) (286,633) 2018 381,719 (38,034) 0 (57,052) (286,633) 2019 381,719 (38,034) 0 (57,052) (286,633) 2019 381,719 (38,034) 0 (57,052) (286,633) 2020 381,719 (38,034) 0 (57,052) (286,633) 2020 381,719 (38,034) 0 (57,052) (286,633) 2021 381,719 (38,034) 0 (57,052) (286,633) 2021 381,719 (38,034) 0 (57,052) (286,633) 2022 381,719 (38,034) 0 (57,052) (286,633) 2022 381,719 (38,034) 0 (57,052) (286,633) 2023 381,719 (38,034) 0 (57,052) (286,633) 2023 381,719 (38,034) 0 (57,052) (286,633) 2024 381,718 (38,034) 0 (57,052) (286,633) 2024 381,719 (38,034) 0 (57,052) (286,633) 2025 381,719 (38,034) 0 (57,052) (286,633) 2025 381,719 (38,034) 0 (57,052) (286,633) 2026 381,719 (38,034) 0 (57,052) (286,633) 2026 381,719 (38,034) 0 (57,052) (286,633) 2027 381,719 (38,034) 0 (57,052) (286,633) 2027 381,719 (38,034) 0 (57,052) (286,633) 2028 381,719 (38,034) 0 (57,052) (286,633) 2028 381,719 (38,034) 0 (57,052) (286,633) 2029 381,719 (38,034) 0 (57,052) (286,633) 2029 381,719 (38,034) 0 (57,052) (286,633) No Interest Income No Market Value Inflation Page 9 of 13 Prepared by Ehlers Pro2004-7-PST.xIs 613/03 nAENT Admin. IATE Net Tax Fund MT YEAR RICHFIELD HRA - 2003 STATUS REPORT Housing Tax Exempt P.A.Y.G. Fund G. O. Bond Note Payment A Net Tax Increment BALANCE 0 8/1 2003 0 0 0 0 0 0 2/1 2004 0 0 0 0 0 0 8/1 2004 892,012 (32,012) (224,084) (195,322) (440,594) 0 2/1 2005 892,012 (32,012) (224,084) (455,322) (180,594) 0 8/1 2005 910,768 (32,686) (228,801) (190,122) (459,160) 0 2/1 2006 910,768 (32,686) (228,801) (460,122) (189,160) 0 8/1 2006 929,848 (33,371) (233,598) (184,722) (478,157) 0 2/1 2007 929,848 (33,371) (233,598) (469,722) (193,157) 0 8/1 2007 949,258 (34,068) (238,479) (179,022) (497,689) 0 2/1 2008 949,258 (34,068) (238,479) (474,022) (202,689) 0 8/1 2008 969,002 (34,777) (243,443) (173,122) (517,659) 0 2/1 2009 969,002 (34,777) (243,443) (483,122) (207,659) 0 8/1 2009 989,087 (35,499) (248,493) (166,767) (538,327) 0 2/1 2010 989,087 (35,499) (248,493) (486,767) (218,327) 0 8/1 2010 1,009,518 (36,233) (253,631) (160,047) (559,607) 0 2/1 2011 1,009,518 (36,233) (253,631) (495,047) (224,607) ~ 8/1 2011 1,030,301 (36,979) (258,857) (152,844) (581,621) 0 2/1 2012 1,030,301 (36,979) (258,857) (507,844) (226,621) 0 8/1 2012 1,051,443 (37,739) (264,173) (145,034) (604,498) 0 2/1 2013 1,051,443 (37,739) (264,173) (515,034) (234,498) 0 8/1 2013 1,072,950 (38,511) (269,581) (136,709) (628,149) 0 2/1 2014 1,072,950 (38,511) (269,581) (521,709) (243,149) 0 8/1 2014 1,094,828 (39,297) (275,082) (127,806) (652,643) 0 2/1 2015 1,094,828 (39,297) (275,082) (532,806) (247,643) 0 8/1 2015 1,117,083 (40,097) (280,678) (118,188) (678,122) 0 2/1 2016 1,117,083 (40,097) (280,678) (543,188) (253,122) 0 8/1 2016 1,139,722 (40,910) (286,370) (108,094) (704,349) 0 2/1 2017 1,139,722 (40,910) (286,370) (558,094) (254,349) 0 S/1 2017 1,162,752 (41,737) (292,161) (97,125) (731,729) 0 ' 2018 1,162,752 (41,737) (292,161) (567,125) (261,729) 0 2018 1,186,179 (42,579) (298,051) (85,375) (760,174) 0 2/1 2019 1,186,179 (42,579) (298,051) (580,375) (265,174) 0 8/1 2019 1,210,010 (43,435) (304,044) (73,000) (789,532) 0 2/1 2020 1,210,010 (43,435) (304,044) (598,000) (264,532) 0 8/1 2020 1,234,252 (44,305) (310,139) (59,875) (819,933) 0 2/1 2021 1,234,252 (44,305) (310,139) (609,875) (269,933) 0 8/1 2021 1,258,912 (45,191) (316,340) (46,125) (851,256) 0 2/1 2022 1,258,912 (45,191) (316,340) (626,125) (271,256) 0 8/1 2022 1,283,998 (46,092) (322,647) (31,625) (883,633) 0 2/1 2023 1,283,998 (46,092) (322,647) (646,625) (268,633) 0 8/1 2023 1,309,516 (47,009) (329,064) (16,250) (917,193) 0 2/1 2024 1,309,516 (47,009) (329,064) (666,250) (267,193) 0 8/1 2024 1,335,475 (47,941) (335,591) 0 (951,942) 0 2/1 2025 1,335,475 (47,941) (335,591) 0 (951,942) 0 8/1 2025 1,361,881 (48,890) (342,231) 0 (970,760) 0 2/1 2026 1,361,881 (48,890) (342,231) 0 (970,760) 0 8/1 2026 1,388,743 (49,855) (348,985) 0 (989,903) 0 2/1 2027 1.388.743 (49,855) (348,985) 0 .989,903 0 No Interest Income 1.725% Market Value Inflation Page 10 of t3 Prepared by Ehlers Pro2004-1-PST.xIs 6/3/03 RICHFIELD HRA - 2003 STATUS REPORT L ndale Gatewa West Cornerstone - Coun Pro'ect # 1286 Pi,~~AENT Cornerstone Admin Housing Ron Clark INTERFUND INTERFUND Net Tax DATE Gross Tax Fund Fund Gross Tax G. O. Bond LOAN A LOAN B Increment MT YEAR Increment 10.00% 0.00% Increment Pa ent $soo,ooo at 5°~ Interest ONy End Of Year BALANCE 20,584 8/1 2003 0 0 0 20,583 (37,669) 0 0 3,498 2/1 2004 0 0 0 20,887 (25,113) 0 0 (727) 8/1 2004 0 0 0 24,971 (25,113) 0 0 (869) 2/1 2005 0 0 0 27,874 (30,135) 0 0 (3,130) 8/1 2005 0 0 0 27,874 (30,135) 0 0 (5,390) 2/1 2006 153,087 (15,309) 0 28,184 (100,451) 0 0 60,122 8/1 2006 153,087 (15,309) 0 28,184 (210,451) 0 0 15,634 2/1 2007 154,818 (15,482) 0 28,498 (98,031) 0 0 85,437 8/1 2007 154,818 (15,482) 0 28,498 (213,031) 0 0 40,240 2/1 2008 156,566 (15,657) 0 28,814 (95,429) (88,400) 0 26,135 8!1 2008 156,566 (15,657) 0 28,814 (215,429) 0 0 (19,570) 2/1 2009 158,332 (15,833) 0 29,102 (92,714) (27,000) 0 32,317 8/1 2009 158,332 (15,833) 0 29,102 (222,714) 0 0 (18,796) 2/1 2010 160,116 (16,012) 0 29,425 (89,594) (33,500) 0 31,639 8/1 2010 160,116 (16,012) 0 29,425 (224,594) 0 0 (19,425) 2/1 2011 161,917 (16,192) 0 29,750 (86,219) (38,400) 0 31,432 8/1 2011 161,917 (16,192) 0 29,750 (226,219) 0 0 (19,311). 2/1 2012 163,736 (16,374) 0 30,080 (82,649) (39,400) 0 36,083 8/1 2012 163,736 (16,374) 0 30,080 (232,649) 0 0 (19,124) 2/1 2013 165,574 (16,557) 0 30,412 (78,693) (46,400) 0 35,212 8/1 2013 165,574 (16,557) 0 30,412 (233,693) 0 0 (19,051) 2/1 2014 167,430 (16,743) 0 30,748 (74,508) (48,700) 0 39,176 8/1 2014 167,430 (16,743) 0 30,748 (239,508) 0 0 (18,897) 2!1 2015 169,304 (16,930) 0 31,087 (69,970) (51,900) 0 42,694 8/1 2015 169,304 (16,930) 0 31,087 (244,970) 0 0 (18,815) 2/1 2016 171,198 (17,120) 0 31,429 (65,070) (55,700) 0 45,922 8/1 2016 171,198 (17,120) 0 31,429 (250,070) 0 0 (18,640) 2/1 2017 173,110 (17,311) 0 31,775 (59,798) (60,400) 0 48,736 2017 173,110 (17,311) 0 31,775 (254,798) 0 0 (18,487) 2018 175,041 (17,504) 0 32,125 (54,143) (61,000) 0 56,032 8!1 2018 175,041 (17,504) 0 32,125 (264,143) 0 0 (18,449) 2/1 2019 176,992 (17,699) 0 32,477 (47,948) (67,500) 0 57,874 8/1 2019 176,992 (17,699) 0 32,477 (267,948) 0 0 (18,304) 2/1 2020 178,962 (17,896) 0 32,834 (41,348) (75,000) 0 59,249 8/1 2020 178,962 (17,896) 0 32,834 (271,348) 0 0 (18,199) 2/1 2021 180,952 (18,095) 0 33,194 (34,333) (78,300) 0 65,219 8/1 2021 180,952 (18,095) 0 33,194 (279,333) 0 0 (18,064) 2/1 2022 182,961 (18,296) 0 33,557 (26,738) (82,800) 0 70,622 8/1 2022 182,961 (18,296) 0 33,557 (286,738) 0 0 (17,893) 2/1 2023 184,991 (18,499) 0 33,925 (18,548) (83,600) 0 80,376 8/1 2023 184,991 (18,499) 0 33,925 (298,548) 0 0 (17,755) 2/1 2024 187,041 (18,704) 0 34,295 (9,588) (91,000) 0 84,290 8/1 2024 187,041 (18,704) 0 34,295 (304,588) 0 0 (17,665) 2/1 2025 189,112 (18,911) 0 34,670 0 (204,000) 0 (16,794) 8/1 2025 189,112 (18,911) 0 34,670 0 (52,405) 0 135,672 2/1 2026 191,203 (19,120) 0 0 0 0 (153,000) 154,755 8/1 2026 191,203 (19,120) 0 0 0 0 (97,000) 229,838 2/1 2027 193,316 (19,332) 0 0 0 0 0 403,822 8/1 2027 193,316 (19,332) 0 0 0 0 0 577,806 2/1 2028 195,449 (19,545) 0 0 0 0 0 753,710 8/1 2028 195,449 (19,545) 0 0 0 0 0 929,614 2/1 2029 197,604 (19,760) 0 0 0 0 0 1,107,457 8/1 2029 197,604 19,760) 0 0 0 0 0 1,285,300 8,377,627 (837,763 0 1,374,952 6,114,695) 1,285,405) 250,000 1,285,300 ASSUMPTIONS No Interest Income 1 °h Market Value IMlation Page 11 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 6/3103 RICHFIELD HRA - 2003 STATUS REPORT ADMINISTRATION ~~"`MENT mT YEAR ILN GALAYNS RR Post 1999 Pre 1999 URBAN VILLAGE GRAMERCY LYNDALE GATEWAY LYNDALE GATEWAY WEST CITY BELLA BEST BUY Net Tax Increment End Of Year BALANCE 0 8/1 2003 64,714 7,814 6,111 25,709 16,050 17,151 0 0 0 137,550 2/1 2004 64,714 7,814 6,111 25,709 16,050 17,151 0 0 0 137,550 8/1 2004 64,714 7,814 6,111 25,709 16,050 15,626 0 0 195,322 331,347 2/1 2005 64,714 7,814 6,111 25,709 16,050 15,626 0 0 455,322 591,347 811 2005 64,714 7,814 6,111 25,709 16,050 16,041 0 0 190,122 326,562 2/1 2006 64,714 7,814 6,111 25,709 16,050 16,041 15,309 0 460,122 611,871 8/1 2006 64,714 7,814 6,111 25,709 16,050 16,469 15,309 38,172 184,722 375,070 2/1 2007 0 7,814 6,111 25,709 16,050 16,469 15,482 38,172 469,722 595,529 8/1 2007 0 7,814 6,111 25,709 16,050 16,909 15,482 38,034 179,022 305,132 2/1 2008 0 7,814 6,111 25,709 16,050 16,909 15,657 38,034 474,022 600,307 8/1 2008 0 7,814 6,111 25,709 16,050 17,362 15,657 38,034 173,122 299,860 2/1 2009 0 7,814 6,111 25,709 16,050 17,362 15,833 38,034 483,122 610,036 8/1 2009 0 7,814 6,111 25,709 16,050 17,829 15,833 38,034 166,767 294,148 2/1 2010 0 7,814 6,111 25,709 16,050 17,829 16,012 38,034 486,767 614,327 8/1 2010 0 7,814 6,111 25,709 16,050 18,310 16,012 38,034 160,047 288,088 2/1 2011 0 7,814 6,111 25,709 16,050 18,310 16,192 38,034 495,047 623,268 8/1 2011 0 7,814 6,111 25,709 16,050 18,805 16,192 38,034 152,844 281,561 2/1 2012 64,714 7,814 6,111 25,709 16,050 18,805 16,374 38,034 507,844 701,456 8/1 2012 0 7,814 6,111 25,708 16,050 18,315 16,374 38,034 145,034 274,443 2/1 2013 0 7,814 6,111 25,709 16,050 19,315 16,557 38,034 515,034 644,626 8/1 2013 0 7,814 6,111 25,709 16,050 19,841 16,557 38,034 136,709 266,827 2/1 2014 0 7,814 6,111 25,709 16,050 19,841 16,743 38,034 521,709 652,013 8/1 2014 0 7,814 6,111 25,709 16,050 20,382 16,743 38,034 127,806 258,651 2/1 2015 0 7,814 6,111 25,709 16,050 20,382 16,930 38,034 532,806 663,838 8/1 2015 0 7,814 6,111 25,709 16,050 20,939 16,930 38,034 118,188 249,777 2/1 2016 0 7,814 6,111 25,709 16,050 20,939 17,120 38,034 543,188 674,966 8/1 2016 0 7,814 6,111 25,709 16,050 21,514 17,120 38,034 108,094 240,447 2/1 2017 0 7,814 6,111 25,709 16,050 21,514 17,311 38,034 558,094 690,638 8/1 2017 0 7,814 6,111 25,709 16,050 22,105 17,311 38,034 97,125 230,261 2/1 2018 0 7,814 6,111 25,709 16,050 22,105 17,504 38,034 567,125 700,454 ^r1 2018 0 7,814 6,111 25,709 16,050 22,714 17,504 38,034 85,375 219,313 2019 0 7,814 6,111 25,709 16,050 22,714 17,699 38,034 580,375 714,508 ..;1 2019 0 0 1,103 25,709 16,050 23,342 17,699 38,034 73,000 194,938 2/1 2020 0 0 1,103 25,709 16,050 23,342 17,896 38,034 598,000 720,135 8/1 2020 0 0 1,103 25,709 16,050 23,988 17,896 38,034 59,875 182,656 2/1 2021 0 0 1,103 25,709 16,050 23,988 18,095 38,034 609,875 732,855 8/1 2021 0 0 1,103 25,709 16,050 24,654 18,095 38,034 46,125 169,771 2/1 2022 0 0 1,103 25,709 16,050 24,654 18,296 38,034 626,125 749,972 8/1 2022 0 0 0 25,709 16,050 25,339 18,296 38,034 31,625 155,054 2/1 2023 0 0 0 25,709 16,050 25,339 18,499 38,034 646,625 770,257 8/1 2023 0 0 0 25,709 16,050 26,046 18,499 38,034 16,250 140,589 2/1 2024 0 0 0 25,709 16,050 26,046 18,704 38,034 666,250 790,794 8/1 2024 0 0 0 25,709 16,050 26,773 18,704 38,034 0 125,271 2/1 2025 0 0 0 0 16,050 26,773 18,911 38,034 0 99,769 8/1 2025 0 0 0 0 16,050 27,522 18,911 38,034 0 100,518 2/1 2026 0 0 0 0 16,050 27,522 19,120 38,034 0 100,727 8/1 2026 0 0 0 0 0 0 19,120 38,034 0 57,155 2/1 2027 0 0 0 0 0 0 19,332 38,034 0 57,366 8/1 2027 0 0 0 0 0 0 19,332 38,034 0 57,366 2/1 2028 0 0 0 0 0 0 19,545 38,034 0 57,579 8/1 2028 0 0 0 0 0 0 19,545 38,034 0 57,579 2/1 2029 0 0 0 0 0 0 19,760 38,034 0 57,795 8/1 2029 0 0 0 0 0 0 19,760 38,034 0 57,795 517.711 250.061 202,174 1,105,508 738,300 957,950 837,763 1,787,896 13,244,348 19,641,710_ No Interest Income No Market Value Inflation Page 12 of 13 Prepared by Ehlers Pro2004-1-PST.xIs 6/3/03 RICHFIELD HRA - 2003 STATUS REPORT "MENT Post 1999 URBAN GRAMERCY CITY BEST RR Bond net i ax Increment BALANCE 0 8/1 2003 38,564 24,077 0 0 (56,988) 5,654 2/1 2004 38,564 24,077 0 0 (11,313) 51,329 8/1 2004 38,564 24,077 0 440,594 (61,313) 441,922 2/1 2005 38,564 24,077 0 180,594 (10,563) 232,672 8/1 2005 38,564 24,077 0 459,160 (60,563) 461,239 211 2006 38,564 24,077 0 189,160 (9,688) 242,114 8/1 2006 38,564 24,077 0 478,157 (64,688) 476,111 2/1 2007 38,564 24,077 0 193,157 (8,725) 247,073 8/1 2007 38,564 24,077 0 497,689 (68,725) 491,605 2/1 2008 38,564 24,077 0 202,689 (7,525) 257,805 8/1 2008 38,564 24,077 0 517,659 (67,525) 512,776 2/1 2009 38,564 24,077 0 207,659 (6,265) 264,036 8/1 2009 38,564 24,077 0 538,327 (71,265) 529,704 2/1 2010 38,564 24,077 8,064 218,327 (4,803) 284,230 8/1 2010 38,564 24,077 57,052 559,607 (74,803) 604,498 2/1 2011 38,564 24,077 57,052 224,607 (3,140) 341,160 8/1 2011 38,564 24,077 57,052 581,621 (78,140) 623,174 211 2012 38,564 24,077 57,052 226,621 (1,265) 345,049 8/1 2012 38,564 24,077 57,052 604,498 (76,265) 647,925 2/1 2013 38,564 24,077 57,052 234,498 610 354,800 8/1 2013 38,564 24,077 57,052 628,149 (79,390) 668,452 2/1 2014 38,564 24,077 57,052 243,149 0 362,842 8/1 2014 38,564 24,077 57,052 652,643 (82,390) 689,946 2/1 2015 38,564 24,077 57,052 247,643 0 367,336 8/1 2015 38,564 24,077 57,052 678,122 (85,265) 712,549 2/1 2016 38,564 24,077 57,052 253,122 0 372,815 8/1 2016 38,564 24,077 57,052 704,349 (87,925) 736,117 2/1 2017 38,564 24,077 57,052 254,349 0 374,042 8/1 2017 38,564 24,077 57,052 731,729 0 851,422 2/1 2018 38,564 24,077 57,052 261,729 0 381,422 '~1 2018 38,564 24,077 57,052 760,174 0 879,867 2019 38,564 24,077 57,052 265,174 0 384,867 oil 2019 38,564 24,077 57,052 789,532 0 909,225 2/1 2020 38,564 24,077 57,052 264,532 0 384,225 8/1 2020 38,564 24,077 57,052 819,933 0 939,626 211 2021 38,564 24,077 57,052 269,933 0 389,626 8/1 2021 38,564 24,077 57,052 851,256 0 970,949 2/1 2022 38,564 24,077 57,052 271,256 0 390,949 8/1 2022 38,564 24,077 57,052 883,633 0 1,003,326 2/1 2023 38,564 24,077 57,052 268,633 0 388,326 8/1 2023 38,564 24,077 57,052 917,193 0 1,036,886 2/1 2024 38,564 24,077 57,052 267,193 0 386,886 8/1 2024 38,564 24,077 57,052 951,942 0 1,071,635 2/1 2025 38,564 24,077 57,052 951,942 0 1,071,635 8/1 2025 38,564 24,077 57,052 970,760 0 1,090,453 2/1 2026 38,564 24,077 57,052 970,760 0 1,090,453 8/1 2026 0 0 57,052 989,903 0 1,046,955 2/1 2027 0 0 57,052 989,903 0 1,046,955 8/1 2027 0 0 57,052 0 0 57,052 2/1 2028 0 0 57.052 0 0 57,052 Page 13 of 13 Prepared by Ehlers Pro2004-1-PST.xIs AGENDA ITEM # 3 B REPORT # 3 5 J STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 16, 2003 REPORT PREPARED BY: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ©/ SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: -~ ITEM FOR HRA CONSIDERATION: Consideration of a contract with HNTB for the services of Michael Schroeder. I. RECOMMENDED ACTION: By Motion: Adopt a motion approving the use of Michael Schroeder from HNTB to assist with design services related to the Blending Public Spaces and Private Development Work Group and to assist in formulating a landscape plan at 76th Street and Penn Avenue, northeast quadrant. II. BACKGROUND Housing and Redevelopment Authority (HRA) commissioner Helmberger is a member of the Blending Public Spaces and Private Development Work Group as discussed at the April HRA meeting. This is an HRA funded activity. The work process statement which was a part of the staff report identified Michael Schroeder as a design consultant who would from time to time be meeting with the work group. The services of Mr. Schroeder who is employed by HNTB would not exceed $1,860 (these funds have been provided for in the revised 2003 HRA budget). Mr. Schroeder is considered an outstanding urban design expert not only with buildings but also public improvements and landscaping. Secondly, under the terms of a Livable Communities grant from the Metropolitan Council, staff has been working 061603 Contract-HNTB with the private property owners in the northeast quadrant of 76th Street and Penn Avenue. The results to date in that area has been the construction of a four-unit apartment building and improvements in design and condition of the off-street parking in the area. The final phase at this location is working with the owner of the corner parcel to improve the landscaping. It is also proposed that Mr. Schroeder work with staff and the property owner to formulate a plan for this corner. Mr. Schroeder's services would not exceed $1,000 for this purpose. The funds are derived from the Met Council grant. III. BASIS OF RECOMMENDATION A. POLICY • The HRA strives for the highest quality design in activities for which it is responsible. B. CRITICAL ISSUES • Amongst the purposes of these two activities for which Mr. Schroeder would provide assistance is to create more attractive spaces and a sense of place to better reflect community values. C. FINANCIAL • Funds in the amount of $2,860 are available to pay Mr. Schroeder from the HRA budget. D. LEGAL • The contract is the standard form used by the HRA for undertakings such as is being proposed. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not authorize the contract. Delay consideration. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A AGENDA ITEM # 3A. REPORT # 34 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 16, 2003 REPORT PREPARED BY: PAM BOOKHOUT, REHABILITATION SPECIALIST NAME, TITLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of partnering with Twin Cities Habitat for Humanity to provide a new first-time bu er o ortuni at 6318 Knox Avenue. I. RECOMMENDED ACTION: By Motion: Authorize the Chair and Executive Director to execute a $20,000 second mortgage lien and request staff to work with Twin Cities Habitat for Humanity to keep the property at 6318 Knox Avenue affordable. II. BACKGROUND In 1996, the Housing and Redevelopment Authority (HRA) purchased a substandard property at 6318 Knox Avenue, and after demolition sold the land to Twin Cities Habitat for Humanity (Habitat). Habitat built a new single family home on the site and sold it to a qualified first-time buyer. Recently, that buyer needed to sell. Habitat exercised its right to purchase the property back from the buyer. Although the ownership of Habitat homes does turn-over, it is the exception rather than the rule. In this case, Habitat is finding that the significant increase in the market value of this property will not allow them to sell to a low income household. However, Habitat is committed to the HRA's original project goal of having the property remain as affordable housing for as long as possible. 061603-6318 Knox Ave Staff has evaluated three options for partnering with Habitat to keep the property affordable: 1. Obtain sales information material from Habitat for 6318 Knox Avenue and send to the 70+ households on the HRA's mailing list of families seeking first-time buyer opportunities. The income limit that would be used is 80 percent of median or less (approximately $54,400 for a family of four). This is the income level used under the HRA's New Home Program. In addition, it is the maximum income allowed under the Minnesota Housing Finance Agency's (MHFA) first- time buyer mortgage. The HRA holds a lien in the amount of $20,000 on the property, which would be made available to a subsequent buyer to aid in keeping the home affordable. 2. Defer to Habitat to determine how to find a buyer not within their program. This will be difficult since Habitat's contacts are families with very low incomes who may only be able to enter homeownership through Habitat's regular program with a 0% mortgage. 3. Release Habitat of any commitment they have to keeping the home affordable, allow them to sell the home on the open market, and ask for the HRA's lien to be paid off. The $20,000 proceeds would be returned to the New Home Program fora 2004 rehab or new home development. Staff recommends the first option to provide another affordable opportunity to a buyer and to return the property to owner occupancy as soon as possible. III. BASIS OF RECOMMENDATION A. POLICY • Habitat is committed to keeping the property affordable for 20 years. • Because of rapidly rising market values, the property can no longer meet Habitat's program objectives. • Habitat is interested in partnering with the HRA to find a low to moderate income buyer at 80% of the median or less. B. CRITICAL ISSUES • Habitat has exercised its option to purchase the property at 6318 Knox Avenue from the current Habitat owner who needed to sell. • The HRA holds a $20,000 lien on the property. • Habitat will own the property until sale to another buyer. • Although the property will no longer be a Habitat property, there is an opportunity to keep it as an affordable property. for afirst-time buyer. • The extent of the assistance by staff is to market the home on behalf of Habitat to the HRA's present list of interested first-time buyers. C. FINANCIAL • Habitat will pay for sale preparation of the property for subsequent sale. The HRA will continue to maintain its $20,000 second mortgage if the home is sold to a qualifying first-time buyer. If the lien is repaid, it will be returned to the New Home Program budget for future first-time buyer affordable opportunities. D. LEGAL • All documents related to the sale would be Habitat's responsibility. IV. ALTERNATIVE RECOMMENDATION(S~ • Defer to Habitat to determine how to find a buyer not within their program. • Release Habitat from keeping the home affordable and ask for the HRA's lien to be repaid. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A