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09-17-1996CITY OF RICFIFIELD PLAminG oommisslon AGGIN September 17, 1996 SPEICAL MEETING ROLL. CALL ><_: ; . . APPRO/AL OF MINUTES PUBLIC HEARLNG :. ,. ITEM #1 96- CUP -10 1700 West 78th Street - Galyan's conditional use permit to construct up to 120,000 square feet of retail space. NEW: BUSINESS ::;:::;:.<::<; ITEM PC Ur 13 Modification to the Richfield Redevelopment Plan and Tax Increment Financing Plan for the Interchange District. OLD: BUSINESS LIAISON REP ORT. S ADJOURNMENT: Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Service's Director at 861 - 9702." Item: #1 Agenda Section: Public Hearing Case: #96- CUP -10 Date: September 17, 1996 GENERAL INFORMATION Petitioner: Galyan's Trading Company Location: 1700 West 78th Street Type of Request: Conditional Use Permit to allow construction of a 100,000 square foot retail store with the option of constructing a second phase consisting of an additional 20,000 square feet of retail space. Zoning: I (industrial) Land Use: Commercial Comp. Plan: Freeway Strip References: (see attached Citations section for excerpts) Zoning Code: Section 531.07, Subd. 2 ACTION Proposed Change: Approval of the conditional use permit would allow Galyan's to construct a 100,000 square foot retail store and have the option to construct an additional 20,000 square feet of retail space in the future. Staff Recommendation: Approve the conditional use permit request with stipulations. HISTORY Public Notice: Notice of the Planning Commission's consideration and public hearing was mailed to all property owners within 350 feet of the subject property. Public Hearing: The Planning Commission will conduct a public hearing on Tuesday, September 17, 1996. City Council: Planning Commission action would set a City Council public hearing date of September 23, 1996. ANALYSIS Background: The existing two -story building at 1700 West 78th Street was constructed in 1964. The building has served as office and factory/warehouse space for the Naegele Outdoor Advertising Company since it was constructed. Naegele was recently sold and the present owner of the real estate has been negotiating to sell the property to Galyan's Trading Company of The Limited, Inc. Minimal improvements have been made to the building since it was constructed, and it is currently in a deteriorating condition. Rehabilitation is unlikely given the lack of handicapped access, fire protection systems, the presence of asbestos, and numerous other building code violations. Proposal: Galyan's Trading Company is proposing to demolish the existing building at 1700 West 78th Street and construct a two -story, 100,000 square foot retail store on the site. Galyan's is an interactive sporting goods company on the scale of a department store, where customers are invited to try out the merchandise. Galyan's is currently building similar stores in Minnetonka and Woodbury. The building will be situated on the site in the same fashion as the Naegele building, with the main entrance facing southeast toward the 35W/1 -494 interchange. The primary exterior material is expected to be brick. Issues: • Zoning: The property is zoned industrial, which allows for retail use over 80,000 square feet by Conditional Use Permit. Future Phase: The plans reflect construction of the project in at least two phases. The first phase involves construction of the 100,000 square foot, two story Galyan's store. Future phases could involve construction of up to 20,000 square feet of additional retail space either for Galyan's or some other retailers. The additional square footage would be located on either side of the Galyan's building and would be single story. Parking: 525 parking spaces are provided for Galyan's in the first phase, at a ratio of 5.25 spaces per 1,000 square feet of floor area. In the second phase, 584 parking spaces are provided at a ratio of 4.8 spaces per 1,000 square feet of floor area. The City requires a minimum of 4 spaces per 1,000 square feet of floor area. Staff has requested some minor modifications to the site plan which could result in the loss of a couple of parking spaces. Future roadway improvements to I-494 may have a minor impact on the parking lot; however, parking will still exceed City requirements. Traffic and Vehicular Access: A consultant analysis of the projected traffic to be generated by the project indicates that the proposed Galyan's facility and adjacent retail space is estimated to generate approximately 4,400 vehicle trips throughout the day. The analysis indicates that existing intersections can accommodate the additional traffic generated by the proposed development. (see traffic analysis) Primary access to the site would be from 78th Street. Potential actions that may be taken to discourage access to the site from other routes include the following: place directional signage on Penn Avenue at 78th Street, prohibit on- street parking on 78th Street install a traffic diverter at 77th Street and Knox to prohibit left turn movements from northbound Knox Avenue to westbound 77th Street. On -site Ponding: A small pond is currently located in the northeast comer of the site and will be used for stormwater detention. The pond will also serve as an amenity for the site and will be used by the store for customers to try out merchandise such as boats, fishing equipment and other water - related items. The pond will be expanded to accommodate the increased storm water run off. In addition, Staff is pursuing the possibility of connecting this pond with the one to the north on the Fountainhead apartment site. The intent is to increase ponding capacity and treatment, increase the usable surface area, and enhance the pond's value as an amenity for both the apartment residents and Galyan's. While the connection is something Staff would like to see occur, it is not imperative. The pond on the Naegele site is not classified as a wetland by the Department of Natural Resources. Pedestrian /Bicycle Access: The sidewalk currently existing on the east side of Knox Avenue would be extended south to Galyan's main driveway. An east -west sidewalk would bring pedestrians from Knox Avenue to the main store entrance and then across the parking lot to the ponding area at the northeast comer of the site. Parking facilities for bicycles will also be provided. Neighborhood Meeting: Galyan's held a neighborhood meeting on Thursday, September 5th to present their plans. While over 900 notices were mailed, there were only ten residents and three representatives from Wally McCarthy's in attendance. The main concern was traffic and parking. Residents stated that they did not want commercial traffic on the residential streets. Landscape Plan: The landscape plan is generally acceptable; however, Staff has requested some minor revisions. Primary among these is the addition of 8 spruce trees along Knox Avenue to screen the loading area. RECOMMENDATIONS Recommended Action: Preferred: Recommend that the City Council approve the request for a conditional use permit for 1700 West 78th Street in accordance with the attached site plans and with the following stipulations: 1. That a plan for limiting traffic on 77th Street be developed in conjunction with the City and approved by the Community Development Director. 2. That parking for bicycles be provided for on the site. 3. That a sidewalk be installed along Knox Avenue connecting the site to the existing sidewalk. 4. That a sediment and erosion control plan be submitted to and approved by the City Engineer. 5. That a storm water management plan be approved by the City Engineer. 6. That the final landscape plan be approved by the Community Development Director. 7. That landscaping along the freeway portion of the site be coordinated with the Community Development Director and the Minnesota Department of Transportation. 8. That a lighting plan be approved by the Community Development Director. 9. That a signage plan be approved by the Community Development Director. 10. That the conditional use permit not be issued until a building permit is applied for. Basis: 1. The proposed commercial use is consistent with the Comprehensive Plan designation of the site as Freeway Strip. 2. The proposed development is consistent with the draft Comprehensive Plan Update of 1996 which encourages better utilization of the City's freeway exposure. 3. The site is currently underutilized and the existing building is deteriorating, warranting redevelopment of the site. 4. Landscaping is provided along the north property line to provide a buffer between the development and the adjacent apartment complex. 5. Adequate parking is provided at a ratio that exceeds City requirements. 6. The existing street infrastructure has adequate capacity to handle the traffic generated by the site. Alternative: Recommend that the City Council deny the request with a finding of fact that the proposed use would have an adverse impact on surrounding properties or the City as a whole. ZONING CODE: CITATIONS SECTION 531 - ZONING: INDUSTRIAL DISTRICT 531.07. Conditional uses. Subdivision 1. The uses listed in this subsection are conditional uses in the I District, and are subject to the provisions outlined in Section 546.05 of this code. Subd. 2. Light manufacturing, warehouse, assembly, distribution, packaging, processing, research, repair, service, wholesale, retail, and office uses with over 80,000 square feet of gross floor area. Subd. 3. Those uses outlined in Section 526.27, Subdivisions 4 through 29 of this code, subject to the same conditions. Subd. 4. Vehicle towing businesses, provided the following conditions are met: a) a buffer yard of not less than 15 feet in width shall be provided to separate all aspects of such use from any abutting parcel; b) parking of vehicles on public right -of -way shall be prohibited; c) any outdoor storage of towed vehicles shall be fully screened from view of adjacent properties and public right -of -way; and d) hours of operation may be limited by the Council to protect any neighboring residential properties from adverse impacts. Subd. 5. Other uses of the same general character as those conditionally permitted by this section, as determined by the City pursuant to Section 511.05 of this code. L w rr a a x M AZ.TA A N r9YZ yyy LO lk, I I I i ,' 1 '• l' Z kLnos 3VGAV XONX LU I y Q 2CL i I I S 11 1 oszo.o k wiz Y J T/1 FaoA W w F x r I i 10 wN a S a J wm s umrszovemus x R a Y J T/1 FaoAW w F x r I i 10 wN a S a i M .OS.ZOA N a. YiYt.4 I I a I I I I i 4 F a oil 11, 49, 0 11, N W W z Q U Q Q J Q H 31715831NI 7s a 0 z r 3x w a w z r II 1 I l 1III I I_ `.. p p _J u D 7 L_r _L — i u ei F a LL \ I%! 9W 1 °. 5................. I I > I I o ac c l nl T T:., I 1 I tl35TVM OQ rrv - env nn a Item: #2 Agenda Section: New Business PC Letter: #13 Date: September 19, 1996 GENERAL INFORMATION Subject. The Richfield Housing and Redevelopment Authority (HRA) requests that the Planning Commission consider a resolution fording that a proposed modification of the Redevelopment Plan for the Richfield Redevelopment Project Area and the adoption of the Tax Increment Financing Plan for the Interchange Tax Increment Financing District is consistent with the Comprehensive Plan Type'of Request: Consideration that the modification to the Redevelopment Plan and that the Tax Increment Financing Plan for the Interchange District complies with the Comprehensive Plan, and approval of a resolution fording the same. References: Chapter 462 of Minnesota State Statute requires the Planning Commission to review redevelopment plans for consistency with the Comprehensive Plan. Attachment A -- Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and the Adoption of the Tax Increment Financing Plan for the Establishment of the Interchange Tax Increment Financing District BACKGROUND Public Notice: Not required for a fording of this type. City Council: A public hearing is scheduled for October 28, 1996. ANALYSIS Proposal: The Housing and Redevelopment Authority (HRA) is proposing to modify the City's Redevelopment Plan and adopt a Tax Increment Financing (TIF) Plan for a newly established Interchange TIF district. The Interchange TIF district would be comprised of the Naegele site at 1700 West 78th Street. Modification of the Redevelopment Plan and establishment of the Interchange TIF district would facilitate redevelopment of the Naegele site for future commercial development. RECOMMENDATION Recommended Action: Preferred: Adopt the attached resolution which makes a fording that the modified Redevelopment Plan for the Richfield Redevelopment Project Area and the Tax Increment Financing Plan for the Interchange Tax Increment Financing District is consistent with the Comprehensive Plan. Basis: 1. The Planning Commission is required to review the Plan Modification to determine consistency with the Comprehensive Plan. 2. The Comprehensive Plan designates the identified site at 1700 West 78th Street as Freeway Strip. This designation permits hotel /motel, dining /entertainment, retail /wholesale, offices, light industrial, and multi- family uses. 3. Legal Counsel has reviewed the related documents and found them to be in compliance with existing laws. Alternative: Find that the Plan is not consistent with the Comprehensive Plan; however, this finding would appear to require amending the Comprehensive Plan. RESOLUTION NO. RESOLUTION OF THE RICHFIELD PLANNING COMMISSION FINDING THE MODIFIED REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE TAX INCREMENT FINANCING PLAN FOR THE INTERCHANGE TAX INCREMENT FINANCING DISTRICT TO BE CONSISTENT WITH THE PLANS OF THE CITY WHEREAS, the City Council for the City of Richfield has proposed to modify the Redevelopment Plan for the Richfield Redevelopment Project area and to adopt the Tax Increment Financing Plan for the Interchange Tax Increment Financing district collectively, the "Plans ") and has submitted the Plans to the Richfield Planning Commission pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, and WHEREAS, the Planning Commission has reviewed the Plans to determine their consistency with the plans for the development of the City. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission that the Plans are consistent with the general plans for the development and redevelopment of the City of Richfield and the Commission hereby recommends their approval to the City Council. Adopted this 17th day of September, 1996 by the Planning Commission of the City of Richfield, Minnesota. CITY OF RICHFIELD Daniel Linnihan, Chairperson ATTEST: Timothy Erlander, Secretary H:CdAdmin:P &Z:Reso1103 ) Draft as of September 9, 1996 Draft for HRA Meeting Modifications to the Redevelopment Plan For Richfield Redevelopment Project Area and the Adoption of the Tax Increment Financing Plan For the Establishment of the Interchange Tax Increment Financing District A Redevelopment District) Housing and Redevelopment Authority in and for the City of Richfield Hennepin County City of Richfield, Minnesota HRA Adoption: September 16, 1996 City Council Public Hearing: October 28, 1996 City Council Adoption: Prepared 1 PUBLICORP in association with EHLERS At 2950 Norwest 90 South Seven Minneapolis, MN 612) 339 -f TABLE OF CONTENTS for reference purposes only) SECTION I. - MODIFIED REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA ........................ Page I -I F. BOUNDARY OF THE RICHFIELD REDEVELOPMENT PROJECT AREA ..... Page I -1 J. DEVELOPMENT ACTIVITY IN RICHFIELD PROJECT AREA ............... Page I -1 SECTION II - TAX INCREMENT FINANCING PLAN FOR THE INTERCHANGE TAX INCREMENT FINANCING DISTRICT .......... Page II -I A. STATUTORY AUTHORITY ........... ............................... Page II -1 B. STATEMENT OF OBJECTIVES ........ ............................... Page II -1 C. REDEVELOPMENT PLAN OVERVIEW . ............................... Page II -2 D. DESCRIPTION OF PROPERTY IN ...... ............................... Page II -2 E. CLASSIFICATION OF THE TAX INCREMENT FINANCING DISTRICT ..... Page II -2 F. PROPERTY TO BE ACQUIRED ........ ............................... Page II -3 G. ESTIMATE OF COSTS ................ ............................... Page II -3 H. SOURCES OF REVENUE/BONDED INDEBTEDNESS .................... Page II-4 I. ORIGINAL TAX CAPACITY ........... ............................... Page II-4 J. AMOUNT OF CAPTURED TAX CAPACITY ............................ Page II -5 K. DURATION OF THE DISTRICT ........ ............................... Page II -5 L. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS ............. Page II -5 M. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT ...... Page II -6 N. LIMITATION ON ADMINISTRATIVE EXPENSES ........................ Page II -7 O. LIMITATION OF INCREMENT ............ . ........................... Page II -7 P. USE OF TAX INCREMENT ............ ............................... Page II -8 Q. NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS ................. Page II -9 R. EXCESS TAX INCREMENTS .......... ............................... Page II -9 S. REQUIREMENT FOR AGREEMENTS WITH THE DEVELOPER ............ Page II -9 T. ASSESSMENT AGREEMENTS ........ ............................... Page 1I -10 U. ADMINISTRATION OF DISTRICT AND MAINTENANCE OF THE TAX INCREMENT ACCOUNT ........ ............................... Page II -10 V. FINANCIAL REPORTING REQUIREMENTS ........................... Page II -10 W. MUNICIPAL APPROVAL AND PUBLIC PURPOSE ...................... Page II -12 X. COUNTY ROAD COSTS .......................................... Page H -13 Y. FISCAL DISPARITIES ELECTION ................................... .. Page II -13 Z. OTHER LIMITATIONS ON THE USE OF TAX INCREMENT ......... 4.......: Page II -14 AA. STATE TAX INCREMENT FINANCING AID ....................... ... .: =.Page II -15 AB. ECONOMIC DEVELOPMENT AND JOB CREATION ............... :...,.Page II -16 AC. SUMMARY ............... ............................... '.. Page II -16 EXHIBIT A - Boundary Maps of the Richfield Redevelopment Project Area and ~' The Interchange Tax Increment Financing District ................. '.... .. ........ A -1 EXHIBIT B - Cashflow Analysis and Base Value Analysis ........... B -I EXHIBIT C - Redevelopment Qualifications ........... .......... ....... C -1 vSk Y 4. EXHIBIT D - Minnesota Business Assistance Form ... .................. D -1 kIM41181AM MODIFIED REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA F. BOUNDARY OF THE RICHFIELD REDEVELOPMENT PROJECT AREA The Richfield Redevelopment Project Area is hereby modified, and the revised boundaries of the Richfield Redevelopment Project Area are as follows: Starting at the intersection of the Richfield west city line and 66th Street, following east on 66th Street to Queen Avenue, thence north to 65th Street, thence west to the rear lot lines of the properties on the east side of Russell Avenue, thence north on said rear property lines to the north city line, thence east to Lyndale Avenue, thence south to 63rd Street, thence east to Harriet Avenue, thence south to 64 1/z Street, thence continuing south on the property line between Lots 4 and 5, Block 6, Lyndale Oaks Subdivision to the south line of said subdivision, which is also the north line of Hauser's Second Addition. Thence continuing east on said line and as extended to Pillsbury Avenue, thence north on Pillsbury Avenue to the south line of Block 6, Rearrangement of Nicollet Homes Second Addition, thence east on said line to the rear lot line of the lots in Block 8 of said addition, between Blaisdell and Nicollet Avenues, thence north on said line to 64th Street, thence east on 64th Street to the rear lot line of the lots in Block 8, Town's Edge Subdivision, thence south to 65th Street, following the east edge of First Federal Richfield Addition. Thence continuing east on 65th Street to First Avenue, thence south to 66th Street, thence east to 11 th Avenue, thence north to the north city line, thence east to Bloomington Avenue, thence south to 63rd Street, thence east to 16th Avenue, thence south to the south border of Taft Park, thence east to 18th Avenue, thence south to the intersection of the northerly lot line of Lot 10, Block 1, Wexler's Addition and 18th Avenue South, thence in a line along said northerly lot line as extended to the west right -of -way line of Cedar Avenue, thence north to a point 55 feet south of the centerline of 66th Street, thence east to a point 110 feet east of the centerline of Cedar Avenue, thence south to the easterly extension of the south line of Lot 1, Block 4, Wexler's Addition, thence west along said line to the west line of said lot, thence north to the south right -of -way line of vacated 67th Street. Thence west to 18th Avenue, thence south to Diagonal Boulevard, thence east along the centerline of said boulgvard, extended to T.H. 77, thence south to the south city line, thence west to Knox Avenue, thence north to the north line of Registered Land Survey #1037, thence east to Interstate 35W, thence north to 73rd Street, thence west to Penn Avenue, thence south to 74th Street, thence west to Sheridan Avenue, thence south to 76th Street, thence east to Penn Avenue, thence south to the north.Fiontage Road of Interstate I-494, thence west to Thomas Avenue, thence north to 77th Street, thence ea 6o west right of way line of Sheridan Avenue, thence north to 76th street, thence west to the west cityAine,';` thence north to the point of beginning at 66th Street. A map outlining the boundary of the Project Area is found on the following page. J. DEVELOPMENT ACTIVITY IN RICHFIELD PROJECT AREA , V f A:; Current plans for the project call for the redevelopment of the Naegle Building at e-nohwest comer of Interstate Highway 35W and Interstate Highway 494 in the City of ^Rrchf eld (Interchange TIF District). The redevelopment plans currently call for a 2 -story retail building. The financing of the;$ 18,300,000 project will consist, in part, of Tax Increment Financing. The estimated public costs-- farathe4Iriterchange TIF District are r: ,ate, outlined in the Tax Increment Financing Plan for the Interchange,TIF Dis 'Ccf Modified Redevelopment Plan for the Richfield Redevelopment Project Area Page 1.1 w Q U LLI w a. H w a 0 LLI ui O LLJ Li W U i, ti MSIONtaS nil sell ` l J = OCJo sell ar 4462 ID 1114, [ C I1 _ ILA611]10NQ1 _- T-- _ -_-__ r011irewol JAW Yt027 — • '3A7 Y1037 IL all C oC UCOD C UU1 Al wOlON1 'NOl,"I," I ; at CiU C J C CCC C fl CiCIC ., f, 0, lom] ' : 101113 Snswnlo7 snswrt107 7Yq OMtlit0 y, OMt 1710 iA1 ONt11Y0r 1 y C — CQ,' 7At OMPLLNO/ 01N117 NOl earn yS ,1 f MIA)lt 1 ,C SNJA21S At l)T071111 I 'r r C 7At 1311021M . n30fIt1S 1; I Ci T3af111S O01111OA1103AIQ C": I Q O) M1S0A1M3A IYIISS ld ( 11 C AYn4Snlr 1Mtft)lY ,x' . —. —. —_ — il:-.+-- w:l. —. ._i__ II ai• a..1.1 i_— 1 1N St)1/ Q% O"w"O UIL —. r,• I'.—' --i — ^_ _ `' ON.YO O LJ 131YYIM C- -+ ^r-1 131YYtw 013iAmwo 3At 31tONa1 ] D +- E O ' 3A/ 31tONa1 1 N71Y01' 1• .. 11 C[ 1-1 N71YOlt II• r ^LL 1NIAY11 J O1t N On0 II • aC C CIC 1NOIn0 MOSY31 3 0 1 _ c . OYIY10 -- - - -- -- - -- _ - , 0N tY1 D 10lOSwnN L a S7wtr • i sON It:C C.U LU U: I j _ SOMN 100, - E C C- U I CL -U I C -i1"' N..61 N.OYOw E C C- ii q%I G C - C C C N, *Now a MOLA7N C -CCU I lo= I N0J1M)K Y3All0 GC UL L °uC C_ ^ S3AYt0 IiL<;LU 7At NNi• j `(''' -]AM NN)r M7)n0 N M77n0 i13SSnio - Cam^ , 1 11101N)Nf ! • fnj `''' L N.OIY)MS stw6wl •"r-- 1`' 0l J11. 1I_ _ 11C7 S.wOwa Ol.n I _ ^• t ; [_= _''•'IL. ^L.r ._I NOLn 1,0122 9A I 7A1 S31Y)7 13 --.. +-+ _ —_— _ '7A1 S37Y3S N M N r N N M N N N N N N Y N N M N N w Gr r r r r r .. . • g V c O E d W 0 c 0 O m V a d o CL I tD c e to Tm L m E 0 a m 0 W SECTION 11 TAX INCREMENT FINANCING PLAN FOR THE INTERCHANGE TAX INCREMENT FINANCING DISTRICT A. STATUTORY AUTHORITY Within the City of Richfield (the "City ") there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City Council established the Richfield Housing and Redevelopment Authority (the "Authority "). The City faces various existing land use problems that require collective action by the City or Authority before development by private enterprise becomes financially feasible or desirable. The Authority and City are authorized to establish a tax increment district pursuant to Minnesota Statutes, Section 469.174 to 469.179, inclusive, as amended, and Section 469.001 to 469.047, inclusive, as amended, to assist in financing public costs related to this project. Tax increments are derived only from the increased amount of taxes which are paid on a parcel of property after the construction of a new structure on the parcel. Tax increment districts encompass the parcel from which tax increments are paid for a period of time. Below is the Tax Increment Financing Plan (the "Plan ") for the Interchange Tax Increment Financing District the Interchange TIF District "). Other relevant information is contained in the Redevelopment Plan for the Richfield Redevelopment Project Area, originally adopted on June 14, 1993 and subsequently modified. A modification of the Redevelopment Plan is contemplated in the Tax Increment Plan. The Authority or the City reserves the right to approve all or a portion of the property proposed to be included in the Interchange TIF District on the date of the first public hearing, October 28, 1996. B. STATEMENT OF OBJECTIVES The Interchange TIF District consists of I parcel of land and adjacent and internal rights -of -way. The current plans for the new development on the site include the construction of a 2 -story retail building on the site of the Naegle Building at the northwest comer of Interstate Highway 35W and Interstate Highway 494 in the City of Richfield. The Interchange TIF District is expected to achieve many of the objectives set forth in the Redevelopment Plan in regard to land use. These objectives include: r; 1. To provide increased employment opportunities.' 2. Secure the increase of property subject to taxation by the City, county, school district, and other taxing jurisdictions in order to better enable such entities :to ;pay Tor.-, -public improvements and governmental services and programs required to-be - provided .bv them; Fv an rA Y; o 3. To provide maximum opportunity, consistent with the needs of :the City for;. development by private enterprise. 4. Provide a retail service level required by the residents of.the community. 5. To achieve a balanced variety of commercial businesses ,and services appropriate to the market area. Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -1 See Exhibit C for the data on the qualifications of the redevelopment tax increment financing district. C. REDEVELOPMENT PLAN OVERVIEW Property to be Acquired - The City does not contemplate ownership at this time. 2. Relocation - Complete relocation services are available pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. The City or the Authority may perform or provide for some or all necessary relocation, demolition, and required utilities and public streets work within the Interchange TIF District. 4. The Interchange TIF District contains property that is appropriately zoned for the anticipated use of the project. All development in the area conforms to applicable state and local codes and ordinances. D. DESCRIPTION OF PROPERTY IN THE INTERCHANGE TIF District The Interchange TIF District encompasses the parcel and all adjacent and interior right -of -ways as identified below: 33- 028 -24 -34 -0012 The City or the Authority reserves a right to approve all or a portion of the area of the parcel listed as designation for the Interchange TIF District. See the map in Exhibit A for further information on the location of the Interchange TIF District. E. CLASSIFICATION OF THE TAX INCREMENT FINANCING DISTRICT The City and the Authority, in determining the need to create a tax increment financing district in accordance with Minnesota Statutes, Section 469.174 to 469.179, as amended, inclusive, find that the Interchange TIF District to be established is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10 as defined below: a) "Redevelopment district" means a type of tax increment financing district consisting ofa.," project, or portions of a project, within which the authority finds by resolution thavwrie of the,;,''. following conditions, reasonably distributed throughout the district, exists:' b) 1) parcels consisting of 70 percent of the area in the district are occupied by buildings; streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally, substandard to a degree, requiring M, substantial renovation or clearance; or 2) The property consists of vacant, unused, underused, inappropriately use or infrequently, used railyards, rail storage facilities or excessive or vacdted'railroad z sta rights -of- -way. For purposes of this subdivision, "structurally substandard! structural elements or a combination of deficiencies in esst and ventilation, fire protection including adequate' egress, v.0 Tax Increment Financing Plan for the Interchange Tax Increment Financing District eiWi ontaining defects in Wities and facilities, light and condition of interior Page 11 -2 partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. If the evidence supports a reasonable conclusion that the building is not disqualified as structurally substandard, the municipality may make such a determination without an interior inspection or an independent, expert appraisal of the cost of repair and rehabilitation of the building... c) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or other improvements until 15 percent of the area of the parcel contains improvements. The 1 parcel has been investigated by City and Authority staff and the Interchange TIF District has been found to meet all requirements of a redevelopment district. Please see the redevelopment qualification findings in Appendix C. 1. The Interchange TIF District consists of 1 parcel. 2. An inventory of the parcel shows that at least 15 percent of the parcel is occupied as defined in the Act. 3. An inspection of the buildings located within the Interchange TIF District finds that at least 50 percent of the buildings are structurally substandard as defined in the Act. See specific findings in Appendix C. F. PROPERTY TO BE ACQUIRED The Authority may acquire any parcel within the Interchange TIF District, including interior and adjacent street rights of way_ ', 1. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities.and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. 2. The following are conditions under which properties not designated to be acquired maybe`:acquired: The City may acquire property by gift, dedication, condemnation or direct purchase-ftom willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisttioris will be undertaken only when there is assurance of funding to finance the acquisition, related costs. G. ESTIMATE OF COSTS -' The estimate of public costs associated with the Interchange TIF District are outlifiWin the following line item budget: ` °'Nz$ya '. Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -3 Estimate of Public Costs Qualified Costs Land Acquisition, Site Work, Public Improvements, Asbestos Abatement, Demolition and Removal $6,300,000 Administration (10%) 700.000 Total Estimated Public Costs: Interest payments on tax increment bonds and obligations are also considered to be public costs in addition to the above referenced estimate of public costs. Interest payments will be determined at the time of issuance of the bonds and obligations and are dependent on interest rates in effect at such time. In addition, administration costs to cover city staff and overhead and various consulting fees in an amount not to exceed 10% of total tax increment will be funded with tax increments from the Interchange TIF District in addition to above mentioned costs. Any funds to be expended outside the boundaries of the Interchange TIF District, but within the boundaries of Richfield Redevelopment Project Area, will be less than 25 percent of total tax increment generated by the Interchange TIF District, including administrative costs. Subject to that limitation, and the limitations as described in Section P, the tax increment from the Interchange TIF District may be used to pay for public costs within the Richfield Redevelopment Project Area. H. SOURCES OF REVENUE/BONDED INDEBTEDNESS Public improvements costs, acquisition, relocation, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or City reserve the right to use other sources of revenue legally applicable to the Redevelopment Plan and the Tax Increment Financing Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the Developer and investment Income, to pay for the Estimated Public Costs. The HRA or City reserve the right to incur bonded indebtedness as a result of the Tax Increment Financing Plan. Additional indebtedness may be required to finance other authorized activities.' This provision does not obligate the HRA or City to incur debt. The HRA or City will issue bonds only upon the determination that such action is in the best interest of the HRA or City. The HRA may,,, ?"-finance the activities to be undertaken pursuant to the Tax Increment Financing Plan through loans from funds4the HRA or to reimburse the Developer on a "pay -as- you -go" basis for eligible activities paid for by tfig=Developer. The total principal amount of bonded indebtedness related to the use of tax increment financing will :not exceed 54,500,000 including pay -as- you -go obligations without an amendment to the Tax;._Increment Financing Plan pursuant to applicable statutory requirements. I. ORIGINAL TAX CAPACITY 3t Pursuant to Minnesota Statutes Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the Original Net Tax Capacity (OTC) for the Interchange TIF District is based dil the value placed on the property by the assessor in 1996 for taxes payable 1997. The tax capacity as certified is estimated to be $180,100 for taxes payable in 1997. Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11-4 The original local tax rate for the Interchange TIF District will be the tax rate for taxes payable in 1997 of 140.707 %. Each year, the Hennepin County Department of Property Tax and Public Records will measure the amount of increase or decrease in the total tax capacity of the Interchange TIF District to calculate the tax increment payable to the City and the Authority. In any year in which there is an increase in total tax capacity in the tax increment financing district above the annual percentage of annual increase, a tax increment will be payable. In any year in which the total tax capacity in the Interchange TIF District declines below the original tax capacity, no additional valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the OTC 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, 4. change in the use of the property and classification; or 5. change in state law governing class rates. AMOUNT OF CAPTURED TAX CAPACITY Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of the Interchange TIF District, upon completion of all phases of the project, will annually approximate 175,248. The City requests 100 percent of the available increase in tax capacity for repayment of debt and current expenditures. The original tax capacity and project tax capacity are estimated at current market values and class rates to be the total amount when all development is in place and uses of the property have changed. Estimated Project Tax Capacity 355,348 less Original Tax Capacity 180.100 Estimated Captured Tax Capacity 175,248 The Authority elects the calculation of tax increment under Section 469.177, subd. 3(a), which means that fiscal disparities contribution will be made from inside the District. K. DURATION OF THE DISTRICT p''t.' A: s Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1, the duration of the Interchange TIF District must be indicated within the Plan. The duration of the Interchange TIF District will be 25 years from payment of the first tax increment expected in 1999. Thus, it is estimated that the Interchange TIF,District, including any modifications of the Plan for subsequent phases or other changes, would terminateat "the; end of the year 2023. The City and the Authority reserve the right to decertify the Interchange TIF. District •priot.to the legally required date. L. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of the Interchange TIF District. If the construction is a result of taz increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -5 due to the fact that the construction would not have occurred without the assistance of the city, the following estimated impact of the Interchange TIF District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE TAXING JURISDICTION ENTITY'S 1995/96 TOTAL NET TAX CAPACITY CAPTURED TAX CAPACITY CTC) PERCENT OF CTC TO ENTITY TOTAL Hennepin County 1,006,485,910 175,248 0.02% ISD No. 280 31,537,789 175,248 0.56% City of Richfield 22,075,804 175,248 0.79% Other N/A I N/A IMPACT ON TAX RATES ENTITY 1995/96 TAX RATE PERCENT OF TOTAL CTC POTENTIAL TAXES Hennepin County 37270 26.49% 175,248 65,315 ISD No. 280 69076 49.09% 175,248 121,054 City of Richfield 26336 18.72% 175,248 46,153 Other 08025 5.70% 175.248 14,064 TOTAL 1.40707 100.00% 246,586 The estimates listed above display captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1996 figures for all jurisdictions. The Interchange TIF District will be certified under rates for tax Ppayableaable 1997. Y In addition, the impacts on School District No. 280 do not include the effect of state aids for education upon school district funding. M. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT ^ >l w In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or en1. Bement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt.if that'determination was not a part of the original plan, or to increase or decrease the amount of interest on.tlie debt`to'be.capitalized, increase in the portion of the captured tax capacity to be retained by the City or Aithority, increase in total estimated tax increment expenditures or designation of additional property to be acgiiired by the City or 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 Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -6 enlarged after five years following the date of certification of the original tax capacity by the county auditor or by approximately November, 2001. Modifications to the Interchange TIF District, in the form of a budget modification or an expansion of the boundaries, will be recorded in this Plan. N. LIMITATION ON ADMINISTRATIVE EXPENSES In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.176, 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 include 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. Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the Interchange TIF District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to Minnesota Statutes, Section 469. 177, Subdivision 11, the county treasurer shall deduct an amount equal to 0.1 percent of any increment distributed to an authority or municipality and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund. O. LIMITATION OF INCREMENT Pursuant to Section 469.176, Subd. 1, of the Tax Increment Financing Act, no tax increment shall be paid to the City for the Tax Increment Financing District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the Tax Increment Financing District by the County Auditor unless within the three (3) years period: a) 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 Section 469.152 to 469.165, or b) the City has acquired property within the Tax Increment Financingpiitrict,,or, c) the City has constructed or caused to be constructed public improvements within the Tax Increment Financing District.' The bonds must be issued, or the City must acquire property or constructor, cause public improvements to be constructed by approximately November 1999. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the Tax Increment Financing District may be terminated if sufficient funds have been irrevocably deposited in the debt Tax Increment Financing Plan for the Interchange Tax increment Financing District Page 11 -7 service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. 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 pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel 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 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 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. The county auditor must enforce the provisions of this subdivision... For purposes of this subdivision, qualified improvements are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcel within the Interchange TIP District by approximately November 2000. P. USE OF TAX INCREMENT The Authority, hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in The Interchange TIF District for the following purposes: I . I to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay the capital and administration costs of the Redevelopment Project pursuant to the HRA Act; 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in Section 469.176, Subd.4, of the Tax Increment Act; . 5. To pay principal and interest on any loans, advances or other payments made,to.the Authority or for the benefit of the Redevelopment Project by the Developer;'`' 6. To finance or otherwise pay premiums and other costs for insurance, credit enhancement, or other security guaranteeing the payment when due of principal and ihterest._on the Tax Increment Bonds or bonds issued pursuant to the Tax Increment anncingP or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469J52 to 469.165, or both; and 7. To accumulate or maintain a reserve securing the payment when due "of the principal and interest on the tax increment bonds or bonds issued pursuant to'Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or both. x; These revenues shall not be used to circumvent any levy limitations applicable to the Authority nor for other purposes prohibited by Section 469.176, subd. 4, of the TIF Act. Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -8 Tax increments generated in the Interchange TIF District will be paid by Hennepin County to the Authority for the tax increment fund of said District. The Authority will pay to the developers annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (1070) and the costs of public improvement activities outside The Interchange TIF District. Q. NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS The Authority shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of Tax Increment Financing District enlargement with a listing of all properties within the Tax Increment Financing District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the tax increment financing plan by the municipality pursuant to Section 469.175, Subd. 3, of the Tax Increment Financing Act. The County Auditor shall increase the original value of the Tax Increment Financing District by the value of improvements for which a building permit was issued. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 4, the Authority has reviewed the area to be included in the Interchange TIF District and found no parcel for which building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. If the building permit had been issued within the 18 month period preceding approval of the plan by the City, the county auditor shall increase the original tax capacity of the district by the valuation of the improvements for which the building permit was issued. R. 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 authority shall use the excess amount to do any of the following: 1. kprepay the outstanding bonds; 2. discharge the pledge of tax increment therefore; 3. pay into an escrow account dedicated to the payment of such bond; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rate. The Authority may also modify this Plan to authorize additional costs. REQUIREMENT FOR AGREEMENTS WITH THE DEVELOPER The City or Authority will review any Developers proposal to determine its - conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. ;Td facilitate;` this effort, the following documents may be requested for review and approval: site plan; constrtiction' mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan"; signagetsystem plan, and any other drawings or narrative deemed necessary by the City or Authority yto demonstrate the conformance of the development with city P lans and ordinances. Land acquired by ; the 6iy76'-r- Au't'h*ority may be subject to a Contract for Sale upon disposition to the Developer. The general requirements to be imposed upon the developer by the Contract for Sale are: v Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -9 To redevelop the land purchased in accordance with this development plan. 2. To commence and complete the building of improvements on the land within a reasonable period of time as determined by the City or Authority. Not to resell the land before improvements are made without the prior consent of the City or Authority. 4. Not to discriminate on the basis of race, color, sex, creed or national origin on the sale, lease, transfer or occupancy of the land purchased from the City or Authority. The requirements to be imposed upon the Developer and the City's or Authority's exact participation in the project will be negotiated as part of the Development Agreement between the City or the Authority and the Developer. T. ASSESSMENT AGREEMENTS Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the City or Authority may enter into an agreement in recordable form with the owner of property within the tax increment financing district which establishes a minimum market value of the land and improvements for the duration of the tax increment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements constructed, review the market value assigned to the land upon which the improvements have been or will be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. U. ADMINISTRATION OF DISTRICT AND MAINTENANCE OF THE TAX INCREMENT ACCOUNT Administration of the Interchange TIF District will be handled by the Executive Director of the Authority. V. FINANGIAL REPORTING REQUIREMENTS Pursuant to Minnesota Statutes, Section 469.175, Subdivisions 5, 6, and 6(a); a Authority must file an annual disclosure report for all tax increment financing districts with the State Auditor, the County "Board,.School Board, and County Auditor. Pursuant to Section 469.175, Subd. 5, of the Tax Increment Financing Act, the Authority must file an annual disclosure report for the Tax Increment Financing District. The report shall be filed with the County Board, County Auditor, School Board, and the State Auditor on or before July 1 of each year. The report to be filed by the Authority shall include the following information:y''p 1. the amount and source of revenue in the tax increment account;;: =° 2 the amount and purpose of expenditures from the account, z, 3. the amount of any pledge of revenues, including principal.and,tnterest, on any outstanding bond indebtedness; =n , 4. the original net tax capacity of the Tax Increment FinaiicingDistrct; 5. the captured net tax capacity retained by the Authority; Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page II -10 the captured net tax capacity shared with other taxing districts; the tax increment received; and any additional information necessary to demonstrate compliance with the tax increment financing plan. Section 469.175, Subd. 5, of the Tax Increment Financing Act also provides that an annual statement showing the tax increment received an expended in that year, the original value, captured net tax capacity, amount of outstanding bonded indebtedness, the amount of the district's increment paid to other governmental bodies, the amount paid for administrative costs, the sum of increments paid, directly or indirectly, for activities and improvements located outside of the district, and any additional information the Authority deems necessary shall be published in a newspaper of general circulation in the City. Pursuant to Minnesota Statutes, Section 469.175, Subd. 6, of the Tax Increment Financing Act, the Authority must annually submit to the State Auditor, on or before July 1, a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in the district; 2. permit comparison and reconciliation with the Authority's accounts and financial reports; 3. permit auditing of the funds expended on behalf of the tax increment district or that is funded in part or whole through the use of a development account funded with tax increment from other tax increment districts or with public money; and 4. be consistent with generally accepted accounting principles. The financial report must also include the following: 1. the original net tax capacity of the district; 2. the captured net tax capacity of the district, including the amount of any captured net tax capacity shared with other taxing districts; 3. 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 lest, the following categories: 4. a. acquisition of land and buildings through condemnation or purchase; b. site improvements or preparation costs; C. installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; d. administrative costs, including the allocated cost of the city; e. public park facilities, facilities for social, recreational,'. or conference purposes, or other similar public improvements; and ' 4. for properties sold to developers, the total costs of the property to the authority:and the price paid the developers; ' 5. the amount of increments rebated or paid to developers or property owners or.. privately financed improvements or other qualifying costs, other than those reported `under,clause (3), that were issued on behalf of private entities for facilities located in .the Interchange TIF District. Pursuant to Minnesota Statutes, Section 469.175, subdivision 6a, the Authority musi also annually report to the State Auditor before or on July l of each year the following amounts for the entire City: Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page II - I 1 1. the total principal amount of nondefeased bonds that are outstanding at the end of the previous calendar year; and 2. the total annual amount of principal and interest payments that are due for the current calendar year on (I) general obligation tax increment financing bonds and (ii) other tax increment financing bonds. and for each tax increment financing district within the City: 1. the type of tax increment financing district; 2. date on which the district is required to be decertified; 3. amount of any payments and the value of in -kind benefits, such as physical improvements and the used of building space, that are financed with revenues derived from increments and are provided to another governmental unit (other than the municipality) during the preceding calendar year; 4. the tax increment revenues for taxes payable in the current calendar year; 5. whether the tax increment financing plan or other governing document permits increment revenues to be expended outside of the tax increment financing district; 6. any additional information that the State Auditor may require. Copies of this report must also be provided to the county and school district boards. W. MUNICIPAL APPROVAL AND PUBLIC PURPOSE 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 in writing the reasons and supporting facts for each determination. Finding that the Interchange Tax Increment Financing District is a redevelopment district as defined in Minnesota Statutes, Section 469.175, Subd. 10. The Interchange TIF District consists of 1 parcel of property. The District qualifies as a redevelopment district as defined in Minnesota Statutes, Section 469.174, subd. 10. Finding that the proposed development, in the opinion of the City Council and the Authority, would not occur solely through private investment within the reasonably foreseeable Juture-and.that the increased market value of the site that could reasonably be expected to occur without the use of tax. 4• increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments_ for the maximum duration of the district permitted by the plan. Due to the high cost of redevelopment on the parcel currently occupied byMa'substandard building and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. Y,. A comparative analysis of estimated market values both with and without establishment of the Interchange Tax Increment Financing District and the use of tax:.increments has been performed as described above. Such analysis is contained in Appendix B of the Tax":' Increment Financing Plan for Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -12 the Interchange Tax Increment Financing District and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the Interchange Tax Increment Financing District and the use of tax increments (See Appendix B). Finding that the Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the municipality as a whole. The site is appropriately zoned. The Tax Increment Financing Plan has been reviewed by the Planning Commission and been found to confirm to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for the Interchange Tax Increment Financing District will afford maximum opportttnity, consistent with the sound needs of the City as a whole, for the development of Richfield Redevelopment Project Area by private enterprise. The establishment of the Interchange Tax Increment Financing District will result in increased employment for the City and will eliminate a blighting influence. X. COUNTY ROAD COSTS Pursuant to Minnesota Statutes, Section 469.175, Subdivision la, the county board may require the authority to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. The improvements outlined in the Plan serve as notice to the county that the development of the commercial retail facility will be assisted with tax increment. In the opinion of the City, the Authority, and consultants, the proposed development will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City within thirty days of receipt of this plan. Y. FISCAL DISPARITIES ELECTION Pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, the governing body may elect one of two methods to calculate fiscal disparities. It the calculations pursuant to Minnesota Statutes, Section. 469.177, subdivision 3, clause a, are followed the following method of computation shall apply: 1) The original tax capacity and the current tax capacity shall be determined before the application of the fiscal disparitn• provisions of Chapter 473F. Where the original tax capacity is equal to or greater than the current tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the didifference between the original tax ca` aci and the currentP .ff P ::. , tax capacity is the captured tax capacity. This amount less any portion thereof which'tlie "buthority has designated, in its tax increment financing plan, to share with the local taxing districts is4he retained captured tax capacity of the authority. 2) The county auditor shall exclude the retained captured tax capacity of the authority from the taxable value of the local taxing districts in determining local taxing district tax capacity rates. =The tax capacity rates so determined are to be extended against the retained captured tax capaciry;of the authority as well as the taxable value of the local taxing districts. The tax generated by the;e'xtensiorf' the lesser of (A) the local taxing y Tax Inerernent Financing Plan for the Interchange Tax Increment Financing District ' Page n -13 district tax capacity rates or (B) the original tar capacity rate to the retained captured tax capacity of the authority is the tax increment of the authority. If the calculations pursuant to Minnesota Statutes, Section 469.177, subdivision 3, clause b, are followed, the following method of computation shall apply: 1) The original tax capacity shall be determined before the application of the fiscal disparity provisions of chapter 473F. The current tax capacity shall exclude any fiscal disparity commercial - industrial tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to Section 473F.08, subdivision 6. Where the original tax capacity is equal to or greater than the current tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original tax capacity and the current tax capacity is the captured tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured tax capacity of the authority. 2) The county auditor shall exclude the retained captured tax capacity of the authority front the taxable value of the local taxing districts in determining local taxing district tax capacity rates. The tax capacity rates so determined are to be extended against the retained captured tax capacity of the authority as well as the taxable value of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax capacity rates or (B) the original tar capacity rate to the retained captured tax capacity of the authority is the tax increment of the authority. The Authority shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the authority elected. The City of Richfield will choose to calculate fiscal disparities by clause a. According to Minnesota Statutes, Section 469.177, Subdivision 3: c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election front the method of computation in paragraph (a) to the method in paragraph (b). Z. OTHER LIMITATIONS ON THE USE OF TAX INCREMENT 1. General Limitations. All revenue 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 capital and administration costs pursuant to Minnesota Statues, Section 469.124 through 469:134: ; These revenues shall not be used to circumvent existing levy limit law. No revenues derived from, tax increment shall be used for the construction, renovation, operation or maintenance of a'building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government; 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, riecreational,or conference purposes and not primarily for conducting the business of the municipality. Y Poolinc Limitations. At least 75 percent of tax increments from the InterchangeTIF District must be expended on activities in the Interchange TIF District or to pay bonds'to e.extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said.'tazincrements may be expended, Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page 11 -14 through a development fund or otherwise, on activities outside of the Interchange TIF District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the Interchange TIF District. 3. Five Year Limitation on Commitment of Tax Increments. Tax Increments derived from the Interchange TIF District shall be deemed to have satisfied the 75 percent test set forth in paragraph 2) above only if the five year rule set forth in Minnesota Statutes, Section 469.1763, subdivision 3, has been satisfied; and beginning with the sixth year following certification of the Interchange TIF District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously commitment expenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section 469.1763, subdivision 4. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under Section 469.174. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority may be included in the qualifying costs. AA. STATE TAX INCREMENT FINANCING AID Pursuant to Minnesota Statues, Section 273.1399, for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of the tax increment financing district. Pursuant to Minnesota Statutes, Section 273.1399, Subdivision 6jor tax increment financing district certified after June 30, 1994, the Authority may choose an option to the LGA -HACA penalty. A tax increment financing district is exempt if the Authority elects at the time of approving the tax increment financing plan to make a qualifying local contribution. To qualify for the exemption in each year, the Authority must make a qualifying local contribution to the project of a certain percentage. The local contribution for a redevelopment district is 5 percent. The maximum local contribution for all districts in the Authority is"limited to two percent of the City's net tax capacity. W3y The amount of the local contribution must be made out of unrestricted money of the authority or municipality" such as the general fund, a property tax levy, or a federal or a state grand -in -aid which may be `spent-for general government purposes. The local contribution may not be made, directly or indirectly, with tax increments or developer payments. The local contribution must be used to pay project costs and cannot 6e.used for general government purposes. fry4 The Authority elects to make the annual 5% local contribution to the project,to.exempt itself from the LGA - HACA penalty. a. Tax Increment Financing Plan for the Interchange Tax Increment Financing District r: `" Page 11 -Is AB. ECONOMIC DEVELOPMENT AND JOB CREATION To the extent applicable, the Authority agrees to comply with Minnesota Statutes, Section 116J.991, which states that a business receiving state or local government assistance for economic development or job growth purposes, including tax increment financing, must create a net increase in jobs and meet wage level goals in Minnesota within two years of receiving assistance (See Appendix D). AC. SUMMARY The HRA of the City of Richfield is establishing the Interchange Tax Increment Financing District to preserve and enhance the tax base, redevelopment substandard areas, and increase employment of the City. The Tax Increment Financing Plan for the Interchange Tax Increment Financing District was prepared by Ehlers and Associates, Inc., 2950 Norwest Center, 90 South Seventh Street, Minneapolis, Minnesota 55402 -4100, telephone (612) 339 -8291. Tax Increment Financing Plan for the Interchange Tax Increment Financing District Page II -16 EXHIBIT A Boundary Maps of the Richfield Redevelopment Project Area and The Interchange Tax Increment Financing District The Interchange Tax Increment Financing District r A -1A -1 w Q V w n w w a O LLI LLI O LLJ LLJ LL U 9 ri w rii M "t w M 2 6 0 Nf1ONtlf V I W 1.11 [.[ .. J[ jl N •M M » M : N .r. la„710W1 eel 7Ar rto7o 12 -' • 7A. rt037 of WILD CC it 96 clCUQ]CCCCiC= G l UCiC 1 11 4601 .101 L0i117 I!_- _ ACC CC 'UiCCCCCC 10t „7 s CC CCC CCCCCOOt3tlpII y a 09r31M3 snfwnloo rYt• C^:CCCCCIC C '6 rY.. N.,yrO o 0Nrlllr0 ------ '1 - n C a E 7Ar OMt11YM i r'1lln ' 3Ar ONt,irO. MO1MIb CCCUU C rL:C NOl lily rIs lQ rY= SM)Ailf ;M3A71S o 4.0 - co 7Ar 12'17103111 ' -- ^ — i / ' 7A. 1311 =11 co 30Stt1s , N1YOA11M3. I I(' —jC ACC ICI iC!CC, N1fG.YlN). Q iMrst3,. ,-- I lwrsr7l. Q: ONr Y9 II OM.YO O 171rYrM 7C L]IrY.M a 0,31•Yt0 I1 / C 0171.Yr9 •r AV 31rOw11 j + ']AV nrawai N31ra,i• I: ..' I CCCC c N31ro t 1Mt1Y6 li ' ° r CCCO 1Ntarf a i.,, O3 cLICCCCdlNO.nO Mosr3w. ° a U •. I i u1lC NOfY7113 OUVW10 - /' 10106wnM JJ C!_JC ````'-- -_ -- // ' __ -- 101OYwnN ONIAII OMANI 13wtp — ••,: Saw vr XONN Nt OYOw jj jj N•OYOw 311 -O.LA1306 r7A110 L I -^ r- -.. ^ Y)A11O JC — _CL_'L i U 7Ar MM 7. .... iAt NN)r no .33no 3SSnr b - r. ir`—' ' 113sfnY NtOtr)NS na'` —' I NtOlY7Ms sv000ll 'WJ•ol n L '. ! 1 Ifl- ICJ ftwOMl 1N33M1A _ L_ l " r I. 1:32101A rnfMY r. n.MSt A 3Ar f 71 I+•• -.•' -++- -. - -- - '7At S7sr]s M M N N N N N N N N N N N r• G • ./ N Y • Y r i w r r w .. r r w g J V I W a E CL N w d eo O v N O C c m E U. C d E V C x H d Q7 C L V 1 C d s H J EXHIBIT B Cashflow Analysis and Base Value Analysis for The Interchange Tax Increment Financing District The Interchange Tax Increment Financing District rr r" 09/10196 city of Richfield - Nae0e Project Page 1 T.I.F. CASH FLOW ASSUMPTIONS - 0% Inflation & Fiscal Disparities at Current Rate Inflation Rate: 0.0000% Pay -A&Ya -Go Interest Rate: WSW% Tax Extension Rate: 1.407070 FmcalDoperbas Rate: 15.892296 BASE VALUE INFORMATION LAND BUILDING I TOTAL TAX Tax Value Value Value RATE Neede BuYdM I 3,90¢,000 I 4a 0o0 3,950,000 I 4.6000% 100.100 ___ PROJECT INFORMATION Type of Tax Increment District: Current Market Value - Est New Redevelopment District Type of Total Taxes Per Taal Taxes Tax Tax Market Dab Date Use S0. Ft Sp. FL Local Capacity Rate Value Aseesssble Payable ROW-1 100,000 5.00 500,000 355,348 4.60% 7,724,964 1998 1998 Retail -11 25,000 5.00 125,000 88,837 4.60% 1,931,241 1999 2000 Total 125,000 625,000 444,185 Yr. 9,656205 TAX INCREMENT CASH FLOW But For Ana"a Current Market Value - Est Base Project New Market Value - Est Captured Semi-Annual Admin. Fiscal Future Value Present Value Local Value Likely to Occur Without TIF 0 Difference PERIOD BEGINNING Tax Tax Tax Gross Tax at Dispar lea Net Tax Net Tax Match PERIOD ENDING Yrs. Mth. Yr. Capacq capacity Capacity Increment 10.00% 15.8922% Increment Inenerrent 5.00% Ym Mth. Yr. 0.0 08-01 1996 180.100 180,100 0 0 0 0 0 0 0 0.0 02 -01 1997 0.0 02 -01 1997 180,100 180,100 0 0 0 0 0 0 0 0.0 08-01 1997 0.0 08-01 1997 180.100 180,100 0 0 0 0 0 0 0 0.0 02 -01 1998 0.0 02 -01 1998 180.100 180,100 0 0 O 0 0 0 0 0.0 00-01 1998 0.0 08-01 1998 180,100 180,100 0 0 0 0 0 0 0 0.0 02 -01 1999 0.0 02 -01 1999 180,100 355.348 175248 123,293 12,329) 19,594) 91,370 71,178 6.165 OS 08-01 1999 0.5 08-01 1999 180,100 355,348 175248 123.293 12,329) 19594) 182,740 139,455 6.165 1.0 02 -01 2000 1.0 02 -01 2000 180.100 444,185 264,085 185,793 18,579) 29527) 320,427 238,148 9290 1.5 08-01 2000 1.5 08-01 2000 180.100 444,185 264,085 185,793 18,579) 29,527) 458,115 332,817 9290 2.0 02 -01 2001 2.0 02 -01 2001 180,100 444,185 264,085 185,793 18,579) 29,527) 595,802 423,627 9,290 2.5 08-01 2001 2.5 08-01 2001 180.100 444,185 264,085 185,793 18,579) 29,527) 733,489 510,735 9290 3.0 02 -01 2002 3.0 02 -01 2002 180,100 444,185 264,085 185,793 18579) 29,527) 871,177 594.291 9.290 3.5 0"1 2002 1 3.5 08-01 2002 180.100 444,185 264,085 185,793 18,579) 29.527) 1,008,854 674,442 9290 4.0 02 -01 2003 4.0 02 -01 2003 180,100 444,185 264,085 185,793 18,579) 29,52n 1,146,552 751,325 9280 4.5 08-01 2003 14.5 08.01 2003 180,100 444,185 264,085 185,793 18,579) 29527) 1284,239 825,073 9.2W 5.0 02 -01 2004 5.0 02.01 2004 I 180,100 444,185 264,085 185,793 18579) 29,527) 1,421,926 895,815 9.290 5.5 08-01 2004 5.5 08-01 2004 1 180.100 444,185 264,085 185,793 18,579) 29,527) 1,559,614 963,673 9290 6.0 02 -01 2005 6.0 02 -01 2005 1 180.100 444,185 264,085 185,793 18,579) 29.527) 1.697,301 1,028,765 9290 6.5 08.01 2005 6.5 0&01 2005 i 180.100 444.185 264,085 185.793 18,579) 29.527) 1.834,988 1.091203 9.290 7.0 02 -01 2008 7.0 02 -01 2006 180,100 444,185 264,085 185,793 18,579) 29,527) 1,972,676 1,151,095 M 7.5 08-01 2006 7.5 08-01 2006 180.100 444,185 264,085 185,793 18,579) 29,527) 2,110,363 1,208,546 9.290 8.0 02 -01 2007 8.0 02 -01 2007 I 180.100 444,185 264,085 185,793 18,579) 29,527) 2,248,050 1,263,655 9,290 8.5 08-01 2007 8.5 08-01 2007 180,100 444,185 264,085 185,793 18,579) 29,527) 2,385,738 1,316,517 9.290 9.0 02 -01 2008 9.0 02.01 2008 180,100 444,185 264,085 185,793 18,579) 29,527) 2.523,425 1,387224 9290 9.5 08-01 2008 9.5 08-01 2008 180,100 444,165 264,085 185,793 18,579) 29,527) 2,661,112 1,415,864 9.290 10.0 02 -01 2009 10.0 02 -01 2009 1 la0,lo0 444,185 264,085 185,793 18,579) 29,527) 2,798,800 1,462,521 9290 10.5 08-01 2009 10.5 08-01 2009 180.100 444,185 264,085 185,793 18.579) 29,527) 2,936,487 1,507276 9290 11.0 02 -01 2010 11.0 02 -01 2010 180,100 444,185 264,085 185,793 18,579) 29,527) 3,074,175 1,550206 9,290 115 08-01 2010 11.5 08-01 2010 180,100 444,185 264,085 185,793 18,579) 29,527) 3211,862 1,591,386 9,290 12.0 02 -01 2011 12.0 02 -01 2011 j 180,100 444,195 264,085 185,793 18,579) 29,527) 3,349549 1,630,888 9,290 12.5 08-01 2011 12.5 08-01 2011 180.100 444,185 264,085 185,793 18.579) 29,527) 3,487237 1,668,779 9.290 13.0 02 -01 2012 13.0 02.01 2012 I 180,100 1 444,185 264,085 185,793 18,579) 29,527) 3,624,924 1,705,125 9290 135 08-01 2012 13.5 08-01 2012 180.100 444,185 264,085 185,793 18.579) 29,527) 3,762,611 1,739,989 9,290 14.0 02 -01 2013 14.0 02 -01 2013 1 180,100 444,185 264,085 185,793 18579) 29527) 3,900299 1,773,433 9290 145 OB-01 2013 14.5 08-01 2013 t 180,100 444,185 264,085 185,793 18,579) 29,527) 4.037,988 1,805512 9.290 15.0 02 -01 2014 15.0 02 -01 2014 180,100 444,185 264,085 185,793 18,579) 29,527) 4,175,673 1,836,284 9.290 15.5 08-01 2014 15.5 08-01 2014 1 180,100 444,185 264,085 185,793 18,579) 29,527) 4,313,361 1,865,802 9290 16.0 02 -01 2015 16.0 02 -01 2015 i 180,100 444,185 264,085 185,793 18,579) 29,527) 4,451,048 1,894,116 9,290 16.5 08-01 2015 16.5 08.01 2015 180.100 444,185 264,085 185,793 18,579) 29,527) 4,588,736 1,921,276 9.290 17.0 02 -01 2016 17.0 02 -01 2016 180,100 444,185 264,085 185,793 18,579) 29,527) 4,726,423 1,947,329 9290 175 08-01 2016 17.5 08-01 2016 180.100 444,185 264,085 185,793 18,579) 29,527) 4,864,110 1,972,319 9,290 18.0 02 -01 2017 18.0 02.01 2017 180,100 444,185 264,085 185,793 18.579) 29,527) 5,001,798 1,998291 9290 185 08-01 2017 18.5 08-01 2017 180,100 444.185 264,085 185.793 18.579) 29,527) 5,139,485 2,019,285 9.290 19.0 02 -01 2018 19.0 02 -01 2018 1 180.100 444,185 264,085 185,793 18,579) 29,527) 5,277,172 2,041,342 9,290 195 08-01 2018 19.5 0841 2018 180,100 444,185 264,085 185,793 18,579) 29,527) 5,414,860 2,062,500 9.290 20.0 02 -01 2019 20.0 02 -01 2019 180.100 444,185 264,085 185,793 18,579) 29,527) 5.552,547 2,082,795 9,290 205 08-01 2019 20.5 08-01 2019 180.100 444,185 264,085 185,793 18,579) 29,527) 5.690234 2,102,283 9290 21.0 02 -01 2020 21.0 02.01 2020 180,100 444,185 264,085 185,793 18,579) 29,527) 5,827,922 2,120,938 9.290 215 08.01 2020 21.5 08-01 2020 j 180,100 444,185 264,085 185,793 18,579) 29,527) 5,965,609 2,138,851 9,290 22.0 02 -01 2021 22.0 02.01 2021 180,100 444,185 264,085 185,793 18,579) 29527) 6,103297 2,156,033 9290 22.5 08-01 2021 22.5 08-01 2021 180,100 444,185 264,085 185,793 18,579) 29,527) 6240,984 2,172,515 9,290 23.0 02 -01 2022 23.0 02 -01 2022 180.100 444,185 264,085 185,793 18,579) 29,527) 6,378,671 2,188,326 9,290 235 08.01 2022 23.5 08-01 2022 180,100 444,185 264,085 185,793 18,579) 29,527) 6,516,359 2,203,491 9,290 24.0 02 -01 2023 124.0 02 -01 2023 j 180.100 444,185 264,085 185,793 18,579) 29,52n 6.654,046 2218,039 9290 24.5 08-01 2023 24.5 08-01 2023 180,100 444,185 264,085 185,793 18,579 29,527) 6,791,733 2 1 993 9290 25.0 02 -01 2024 Totals 9,164,667 916, 1,456,46 6,791,733 458 33 IPresentValues 3,011,820 301182 478644 2,231,9931 But For Ana"a Current Market Value - Est 3,950,000 New Market Value - Est 9 656,205 Difference 5,7062115 Present Value Of Tax Increment 3,011,620 Difference 2,694,386 Value Likely to Occur Without TIF 0 Difference 2,694,3861 RI100 -27 Prepared by Ehlers/Publicorp Inc. NEG-1 091F/a96 Chy of Ria,nela - Naepe Pmject T.I.F. CASH FLOW ASSUMPTIONS - 3% Inflation & Fiscal Disparities at Current Rate Inflation Rate: 3.0000% Pay- As -Yprpo InWast Rab: Tax Extension Rate: Fiscal Disparbas Raba: 841 1.407070 15.89221E LAND l BUILDING l TOTAL l TAX l Tax PROJECT INFORMATION Type of Tax Increment District: Current Market Value - Est New Redevelopment District Type of Total Tans Per Total Taxas Tax Tax Marlrat Data Dab Use Sq. R Sq. Ft Difference cap-fly Rabe Value Assessable Payable Reall - I 100,000 5.00 500.000 355.348 4.60% 7.724.964 19911 1999 Retail -11 25,000 5.00 125,00 88,837 4.60% 1,931,241 1998 2000 Total 125,000 15.8922% 625,000 444,185 5.00% 9,6.56,205 TAX INCREMENT CASH FLOW But For Analysis Current Market Value - Est Brae Project Captured Serra- Annual Adnin. Fisical Fu0im Value Present Value Local Value Likey, to Occur ylfrdxx t TIF 0 Difference PERIOD BEGINNING Tax Tax Tax Grose Tax at Drsp ubm Net Tax Net Tax Match PERK ENDING Yre. Mth. Yr, Cawdly capacmf capacity Increment 10.00% 15.8922% Increment Increment 5.00% Ym. Mth. Yr. 0.0 08-01 1996 180,100 180,100 0 0 0 0 0 0 0 0.0 02 -01 1997 0.0 02 -01 1997 180,100 180,100 0 0 0 0 0 0 0 0.0 08-01 1997 0.0 08-01 1997 180,100 180,100 0 0 0 0 0 0 0 0.0 02 -01 1998 0.0 02 -01 1998 180,100 180,100 0 0 0 0 0 0 0 0.0 08-01 1998 0.0 08-01 1998 180,100 180,100 0 0 0 0 0 0 0 0.0 02 -01 1999 0.0 02 -01 1999 180,100 355.348 175,248 123.293 12,329) 19,594) 91,370 71,178 6.165 0.5 08-01 1999 0.5 08-01 1999 180,100 355,348 175,248 123,293 12.329) 19,594) 182,740 139,455 8,165 1.0 02 -01 2000 1.0 02 -01 2000 180,100 454,846 274,746 193,293 19.329) 30,719) 325,985 242.132 9,865 15 08-01 2000 1.5 08.01 2000 180,100 454.846 274,746 193,293 19,329) 30,719) 469 231 340,822 9.865 2.0 02 -01 2001 2.0 02 -01 2001 180,100 468,491 268,391 202,693 20,289) 32244) 619,591 439,780 10,145 2.5 06-01 2001 2.5 08-01 2001 180,100 468,491 288,391 202,893 20289) 32244) 769,850 534,915 10,145 3.0 02 -01 2002 3.0 02 -01 2002 180,100 482,546 302,446 212,781 21,278) 33,816) 927,838 830,609 10,839 35 69-01 2002 3.5 08-01 2002 180,100 482,548 302,448 212,781 21,278) 33,816) 1,085,326 722.402 10,1339 4.0 02 -01 2003 4.0 02 -01 2003 180,100 497,022 318,922 222,966 22297) 35,434) 1,250,561 814,667 11,148 4.5 08-01 2003 4.5 08-01 2003 180,100 497,022 318.922 222,966 22,297) 35.434) 1,415,796 903,171 11,148 5.0 02 -01 2004 5.0 02 -01 2004 180,100 511.933 331,833 233,456 23,346) 37,101) 1,588,805 992,061 11.673 5.5 O"1 2004 5.5 08.01 2004 180,100 511.933 331,633 233,456 23,346) 37,101) 1,761,814 1,077,327 11,673 6.0 02 -01 2005 5,0 02 -01 2005 1 180,100 527291 347,191 244.261 24,426) 38,818) 1,942.831 1,162,902 12,213 6.5 08-01 2005 5 08-01 2005 180,100 527291 347,191 244.261 24,426) 38,818) 2,123,847 1244.989 12,213 7.0 02 -01 2008 1.0 02.11, 2006 1180.100 543,110 369,010 255,390 25.539) 40.587) 2,313,111 1.327.317 12,770 7.5 08.01 2006 7.5 08.01 2006 180,100 543,110 383,010 255,690 25,539) 40.587) 2,502,375 1,408,289 12.770 8.0 02 -01 2007 6.0 02 -01 2007 180,100 559,403 379,303 266,853 26,695) 42.409) 2,700,134 1,485,441 13.343 8.5 0841 2007 8.5 08.01 2007 1 180,100 559.403 379.303 268,853 26,685) 42.409) 2,897,893 1,561,368 13.343 9.0 02 -01 2008 9.0 02.01 2008 160,100 576.185 396,065 278,880 27,968) 44,285) 3,104,402 1,837,419 13,933 9.5 69.01 2008 9.5 08-01 2008 180,100 576.185 396,085 278.660 27,866) 44285) 3.310,910 1,710,370 13,933 10.0 02 -01 2009 10.0 02.01 2009 180,100 593,471 413,371 290,821 29,082) 46218) 3.526,431 1.783.402 14,541 10.5 08-01 2009 10.5 08-01 2009 180,100 593,471 413,371 290,821 29.082) 46218) 3,741,952 1,853.456 14,541 11.0 02 -01 2010 11.0 02.01 2010 180,100 611,275 431,175 303,347 30,335) 48.208) 3,988,758 1,923,549 15,167 11.5 08-01 2010 11.5 08.01 2010 180,100 611.275 431,175 303,347 30,335) 48,208) 4,191,559 1,990,784 15,167 12.0 02 -01 2011 12.0 02 -01 2011 180,100 629,613 449.513 316,248 31,625) 50,259) 4,425,924 2.058,022 15,812 12.5 08-01 2011 12.5 08-01 2011 180,100 629,613 449.513 318.248 31,625) 50259) 4,660288 2,122518 15,812 13.0 02 -01 2012 13.0 02 -01 2012 180,100 1 648,501 468,401 329,537 32,954) 52,371) 4,904,501 2,188,984 16,477 13.5 08-01 2012 13.5 0&01 2012 180,100 648,501 468,401 329,537 32,954) 52.371) 5,148,713 2248,823 18,477 14.0 02 -01 2013 14.0 02.01 2013 180,100 667,957 487,857 343,224 34,322) 54.546) 5,103,69 2,310,604 17,161 14.5 08-01 2013 14.5 08-01 2013 180,100 867,957 487,857 343,224 34,322) 54,546) 5,657,425 2,369,888 17,181 15.0 02 -01 2014 15.0 02.01 2014 180.100 687,995 507,895 357,322 35,732) 56,786) 5,822228 2,429,048 17,866 15.5 00-01 2014 15.5 08-01 2014 180,100 697.995 507,895 357,322 35,732) 56,788) 6.187,032 2,485,816 17,866 16.0 02 -01 2015 1 16.0 02 -01 2015 180,100 708,635 528,535 371,643 37,164) 59,094) 6,462597 2,542,484 18,592 16.5 09-01 2015 16.5 08-01 2015 180,100 708,835 528,535 371,843 37,184) 59,094) 6,738,161 2,596,841 18,592 17.0 02 -01 2016 1 17.0 02.01 2016 180,100 729,894 549,794 386,799 38,880) 61,471) 7,024,810 2,651,079 19,340 17.5 08-01 2016 17.5 08-01 2016 180,100 729,894 549,794 386,799 38,860) 61,471) 7,311,458 2.703.107 19,340 18.0 02 -01 2017 18.0 02 -01 2017 180,100 751,791 571,691 402,205 40,220) 63,919) 7,609,523 2,755,001 20,110 18.5 09.01 2017 18.5 08.01 2017 180,100 751,791 571,691 402,205 40,220) 63,919) 7,907,588 2,804,779 20,110 19.0 02 -01 2018 19.0 02.01 2018 180,100 774,345 594,245 418,072 41,807) 66,441) 8,217,412 2.854.412 20,904 19.5 08-01 2018 19.5 08-01 2018 180,100 774,345 594,245 418.072 41,807) 66,441) 8,527,236 2,902,021 20,904 20.0 02-01 2019 120.0 02.01 2019 180,100 797,575 617,475 434,415 43,442) 69.038) 8,849,172 2,949,475 21,721 20.5 08-01 2019 08-01 2019 180,100 797,575 617,475 434,415 43,442) 69,038) 9,171,107 2.994.994 21,721 21.0 02-01 2020120.5 21.0 02 -01 2020 180,100 821,502 641,402 451,249 45.125) 71,713) 9,505,518 3,040,349 22,562 21.5 08-01 2020 21.5 OB•01 2020 180,100 621,502 641,402 451,249 45,125) 71,713) 9,839,929 3,083,856 22,582 22.0 02 -01 2021 1 22.0 02 -01 2021 180,100 846,147 886,047 468,588 46,859) 74,469) 10,187,189 3.127,192 23,429 22.5 08-01 2021 22.5 08-01 2021 180,100 SM,147 666,047 468,588 46,859) 74,469) 10,534,448 3,168,761 23.429 23.0 02 -01 2022 j 23.0 02.01 2022 180,100 971,532 691,432 486,446 48,645) 77,307) 10,894,943 3,210,156 24,322 23.5 08.01 2022 23.5 08-01 2022 180,100 971,532 691,432 486,446 48,845) 77,307) 11,255,438 3,249,88:1 24,322 24.0 02 -01 2023 24.0 02 -01 2023 180,100 897,678 717,578 504,841 50,484) 80230) 11,629,565 3289,392 25242 24.5 08-01 2023 24.5 08-01 2023 180,100 897,678 717,578 504,841 50,484) 69 12,003 691 3,327.3D9 25242 25.0 02 -01 2024 1 Totals 16 197,608 1,619 761 2,S74,156) 12 003691 009.8W Present Values 4,489,823 448,982) 713.532 3,327 309 But For Analysis Current Market Value - Est 3,950,000 Now Market Value - Est 9,&%= Difference 5,708205 Present Value Of Tax Increment 4,489,823 Difference 1218,383 Value Likey, to Occur ylfrdxx t TIF 0 Difference 1 218 383 , Pape 1 RI100 -27 Prepared by Ehlers/Publk;orp Inc. NEG.1 EXHIBIT C Redevelopment Qualifications for The Interchange Tax Increment Financing District Please refer to a report entitled "Inspection of Naegele Outdoor Advertising" written by the City of Richfield Public Safety Office and on file with the HRA of the City of Richfield and a report entitled "Phase I Environmental Assessment, Former Naegle Building," also on file with the HRA of the City of Richfield. The Interchange Tax Increment Financing District C-1 i 7I'4.: C-1 EXHIBIT D Minnesota Business Assistance Form Minnesota Department of Trade and Economic Development) The Interchange Tax Increment Financing District D-1 MDR4MTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT 500 Metro Square 1217th Place East Saint Paul, Minnesota 55101 -2146 USA To all Minnesota government agencies: V. X001niC4 4. v A n 0 Minnesota Laws 1995 Chapter 224, Section 58 (authored by Representative Karen Clark and Senator John Hottinger) requires a business receiving state or local government assistance as of July 1, 1995 to create a net increase in jobs in Minnesota within two years of receiving assistance and meet wage level and job creation goals established by the funding agency. Businesses not meeting these conditions must repay the assistance at the terms negotiated by the business and the government agency administering the assistance. Each government agency is mandated to annually report wage and job goals and actual progress toward those goals for each business receiving assistance to the Minnesota Department of Trade and Economic Development DTED). The law does not stipulate what those goals should be, but does require goals to be established by the government agency for each individual project. Business assistance" refers to any business activity within a tax increment financing district and any business grant or business loan using stare or local dollars in excess of $25,000. While not defined in the legislation, our assumption is that this would include grants, loans, interest subsidies, tax increment financing (Tl), or any public monies directly benefiting a business and given for economic development or job growth purposes. In order to simplify data collection, please use the Minnesota Business Assistance Form (reverse side). The form should be competed by each government entity administering the assistance for each business receiving assistance. All financial assistance provided to business after July 1, 1995 must be reported. These forms must be submitted to DTED by March 1 of each year for the previous calendar year. Wage level and job =ation goals must be documented until project goals am achieved d Commissioner Minnesota Laws 1.995 Chapter 224, Section 58 (M.S.116J.991): A business that receives state or local tovernment assistance for economic development or iob erowth purposes must create a net increase in iobs in Minnesota within two years of receiving the assistance. The government agency providing the assistance must establish wage level and iob creation goals to be met by the business receiving the assistance. A business that fails to meet the goals must repay the assistance to the government agerrcy. Each government agency must report the wage and iob goals and the results for each proiect in achieving those goals to the department of trade and economic development. The department shall compile and publish the results of the reports for tbegrevious calendar year by June 1 of each year. The reports of the agencies to the department and the compilation report of the deparment shall be made available to the public. For the purposes of this section. "assistance" means a grant or loan in excess of $25.000, or tax increment financing. 612)297 -1291 800) 657 -38580TTY /TDD (612) 282 -6142 V. ocuade and S o 0. : Minnesota Business Assistance Form* P b' Minnesota Department of Trade and Economic Development VOAA Please type or print in dark ink. 1. Funding government agency name 11. Date business received assistance 2. Agency sweet address 13. Hourly wage level goals for business receiving assistance 3. City 4. Zip Code 5. Phone number (area code) 6. Fax number (area code) 7. Contact name 8. Type of government agency, City „County _Regional _State Other (Please indicate) __ J 9. Name of TIF district (if applicable) 10. Name of business receiving assistance 11. Date business received assistance 12. Job crzadon goals for business receiving assistance 13. Hourly wage level goals for business receiving assistance 14. Actual jobs created since business received assistance 15. Actual average hourly wage paid to employees hired since business received assistance 16. Last date actual wage and job creation levels documented Please complete one form for each business project your agency assisted with ,);25,000 or more in public funds. Please send completed form annually by March 1 to: Minnesota Business Assistance Form Minnesota Department of Trade and Economic Development 500 Metro Square 121 East 7th Place SL Paul, Minnesota 55101 or fax report to: 612) 296 -1290 For information, call: 612) 297 -1291 or 1-800-657-3858