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05-25-1999PLANNING COMMISSION AGENDA May 25, 1999 7:00 p.m. Roll Call Approval of Minutes Regular Planning Commission meeting of April 27, 1999 and Planning Commission study session of May 11, 1999. Public Hearing New Business ITEM #1 PC Letter #19 Finding of Consistency with the Comprehensive Plan — Interchange West and Lyndale Gateway Tax Increment Financing ITEM #2 PC Letter #20 Old Business Liaison Reports Adjournment Finding of Consistency with the Comprehensive Plan - Purchase and Sale of 6537 -14th Avenue School Board Community Services Advisory Commission HRA City Council Auxiliary aid 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". gA Planning Commission Minutes Regular Meeting April 27, 1999 MEMBERS PRESENT: Chairperson Brenda Bjorklund; Commissioners: Terry Ahlstrom, Pamela Dmytrenko, David Gepner, Roger, Mitchell Hadley, Bill Kilian, Daniel Linnihan and Ken Meter. MEMBERS ABSENT: COUNCIL LIAISON Commissioner Roger Gordon Martin Kirsch, Mayor STAFF PRESENT: John Stark, Community Development Manager Julie Urban, Zoning Administrator Mark Andrle, Community Development Technician The Planning Commission meeting was called to order by Chairperson Bjorklund at 7:00 p.m. APPROVAL OF MINUTES M/ Dmytrenko, S/ Linnihan to approve the minutes of the regular and special Planning Commission meeting of March 23, 1999. Motion carried: 8 -0 M /Gepner, S/Linnihan to approve the minutes of the Planning Commission study session meeting of April 13, 1999. Motion carried: 8 -0. PUBLIC HEARINGS 99- CUP -2, ITEM #1 1201 East 66th Street, Exhaust Pros Permanent conditional use permit to allow use of as auto repair. April 27, 1999 Page 2 Zoning Administrator, Julie Urban reviewed the history of the property and the conditional use permit approved in 1997 with conditions requiring improvements to be made to the property by June 1, 1999. Curb and gutter was to installed throughout the perimeter of the parking lot by June 1, 2002. Ms. Urban stated that staff recommends that the City Council approve the request for a conditional use permit at 1201 East 66`x' Street with stipulations. She added that the applicant requested until September to make the parking lot improvements because of the difficulty of finding a contractor. Chairperson Bjorklund asked if there has been any violations of the stipulations to the conditional use permit by the business. Ms. Urban stated that public safety had one complaint but it was unfounded. Commissioner Kilian stated that the auto repair businesses is less than 300 feet from the Montessori School which is a violation of city code. The commission discussed the issue and felt the auto repair business would be an allowable use because it was there before the school. Tom Christensen of Exhaust Pros stated that he is near an agreement with the owner to purchase the business. Mr. Christensen stated that he has plans to complete the curbing around the property and black top the parking lot before 2002. He stated that he and is family is committed to the business and have every intention of completing the improvements before 2002. Mr. Christensen asked the commission to remove the stipulation that vehicles which are inoperable shall not be stored on the premises. He stated that at times his garage is full and if a customer drops off another car late in the day he may have to store it outside overnight. M/Dmytrenko, S /Linnihan to close the public hearing. Motion carried: 8 -0 M /Kilian, S /Linnihan to recommend approval of the conditional use permit for a two year period with the following stipulations: property line and the curbing be tied into the existing street curbing by September 15, 1999. 2. That a landscape plan be submitted by June 1, 1999 and completed b September 1, 1999. 3. That full perimeter curb and gutter, MnDOT Type B -612 be installed and the parking lot resurfaced by September 15, 2002. 4. That the hours of operation be limited to no earlier than 8 a.m. and no later than 6 p.m. April 27, 1999 Page 3 5. That any neon lights be turned off when the business is closed. 6. That there be no exterior overnight storage. 7. That the trash dumpster be kept inside the building or an enclosure constructed according to code specifications (Section 541.17). 8. That vehicles which are inoperable shall not be stored on the premises. 9. That parking of vehicles on public right -of -way shall be prohibited. 10. That all repair, assembly, disassembly, and maintenance of vehicles shall occur within an enclosed building. Motion carried: 8 -0 OLD BUSINESS PC Letter # 17 ITEM 42 CIP /CIB Recommendation Ms. Urban reviewed the Planning Commission's responsibilities for reviewing the CIP, making a recommendation to the City Council and finding that the CIP and CIB are both consistent with the Comprehensive Plan. Ms. Urban stated that staff recommends approval of the 2001 -2005 CIP and adopt the resolution finding that the CIP and CIB are consistent with the comprehensive plan. Commissioner Kilian asked if the City Maintenance Facility will be completed by 2000. Acting City Manager, Steve Devich stated that they are still trying to secure a site for the maintenance facility and 2000 would be the earliest completion date. M /Kilian, S/Bjorklund, to recommend approval of the 2001 -2005 Capital Improvement Program. Motion carried: 8 -0. M/Kilian, S/Dmytrenko, to-adopt a resolution finding that the 2000 Capital Improvement Budget and 2001 -2005 Capital Improvement Program are consistent with the Comprehensive Plan. Motion carried: 8 -0. April 27, 1999 Page 4 ITEM #3 PC Letter # 18 Continued Review of Comprehensive Plan Ms. Urban reviewed the updates to the Comprehensive Plan made by the Planning Commission. Ms. Urban stated that staff recommends that the Planning Commission approve the revisions to the Comprehensive Plan and direct staff to send the proposed changes to the Metropolitan Council and the City Council for further action. Commissioner Meter suggested that the last sentence of Neighborhood Commercial, referring to stores being less than 10,000 square feet and are not larger than 25,000 square feet be removed. M/Meter, S/Kilian, to approve the revisions to the Comprehensive Plan with the removal of the last sentence of Neighborhood Commercial, which states, the stores are typically less than 10,000 square feet in size and are located in commercial districts that have not more than 25,000 square feet of store space. Motion carried: 8 -0. LIAISON REPORTS School Board: Commissioner Dmytrenko reported that the School Board discussed graduation standards, the school district and city signed an agreement regarding the new ball fields, they discussed the Richfield Intermediate School and adopted the school calendar. Community Services Advisory Commission: Commissioner Ahlstrom reported that the ball field replacement work has begun, the Commission approved the CIP and CIB and they will have a task force who will spread the word about the plans for a community center. I. f.7 Commissioner Kilian reported CSM has 47 signed contracts with homeowners and 4 more with business owners. CSM also presented plans for Interchange West and Lyndale South. The HRA extended the agreement with Ryan for PASSS to December 30, 1999, and the HRA has purchased several individual homes. April 27, 1999 Page 5 City Council: Mayor Kirsch reported that 17 business owners who sold alcohol to minors attended the meeting. The Council approved the Ryan extension and discussed the low frequency noise committee. Commissioners who attended the PASSS advisory committee meeting on April 17, 1999 gave a report on the results of the meeting. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:20 p.m. Terry Ahlstrom Planning Commission Secretary Planning Commission Minutes Study Session May 11, 1999 MEMBERS PRESENT: Chairperson Brenda Bjorklund; Commissioners: Terry Ahlstrom, David Gepner, Daniel Linnihan and Ken Meter. MEMBERS ABSENT: Pamela Dmytrenko, Roger Gordon, Mitchell Hadley, Bill Kilian COUNCIL LIAISON: Martin Kirsch, Mayor STAFF PRESENT: Bruce Palmborg, Community Development Manager Julie Urban, Zoning Administrator Mike Eastling, Public Works Director COMMUNITY SERVICES COMMISSION MEMBERS: Tim Erlander, Rick Jabs, Arnold Auchetter, John Enger, Robert Died HRA MEMBERS: Joan Helmberger The Planning Commission study session was called to order by Chairperson Bjorklund at 7:00 p.m. Members of the Community Services Commission and Housing and Redevelopment Authority attended the meeting that involved a bus tour of various City projects. Bruce Palmborg, Community Development Director, and Mike Eastling, Public Works Director gave a tour of the following City projects: Proposed Multi- Purpose Community Center Site 66"' /TH 77 Interchange MnDOT Maintenance Facility Proposed site for City garage Cedar Avenue Corridor and Airport Mitigation Area 77" Street Underpass Roosevelt Park Ballfield Replacement 7615 and 7645 Nicollet homes under construction Lyndale Gateway Lyndale Avenue bridge Meridian Crossings 76" Street Pedestrian Crossing Interchange West Penn Avenue bridge Apartment remodeling program May 11, 1999 Page 2 69 "' and Penn Area 6801 Morgan and 1810 West 68`h Street Transformation Homes 66`h Street Bridge Gramercy/V F W Urban Village Holy Angels stormwater pond ADJOURNMENT The meeting was adjourned at 8:25 p.m. Terry Ahlstrom Planning Commission Secretary Planning Commission Letter May 25, 1999 Agenda Section: New Business Item #: I Letter #: 19 GENERAL INFORMATEON Type of .Request: Consideration of a resolution finding that the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and establishment of the Interchange West and Lyndale Gateway Tax Increment Financing District and Tax Increment Financing Plan. are consistent with the Richfield Comprehensive Plan. References: Chapter 462 of the Minnesota State Statutes requires that whenever a tax increment financing plan is created or modified, the Planning Commission must review the plan for consistency with the City's Comprehensive Plan. N RA: On May 18 the HRA adopted a resolution to establish the interchange West and Lyndale Gateway T.iF :District and Plan and to modify the Richfield Redevelopment .Project Area. City Council: The City Council to hold a public hearing on the final approval of the TIF District and Plan on June 14. ANALYSES Proposal: The resolution being considered would establish the Interchange West and Lyndale Gateway TIF District and TIF Plan. A description and brief history of the projects included in the TIF District and Plan is as follows: Interchange West Interchange West is bordered by Knox and Penn Avenues and 76` h and 78` h Street. The EIRA entered into a Contract for Private Redevelopment with CSM in October 1998 for the Interchange West area. CSM presented their concept plan to the HRA at their February 16, 1999 meeting and to the Planning Commission on April 13, 1999. The primary elements of this concept plan included a 350 -room hotel, 375,000 sq. ft. of office space in two connected buildings, a restaurant site, an upscale car dealership, 175 to 250 townhome units and a 100 -unit apartment building. The estimated market value for the proposed Interchange West development is approximately $130 million. This represents an increase of $108 million over the current assessed market value. The gross annual increment has been projected at over $6 million. Appendix D of the Tax Increment Plan provides additional, detailed cash flow information. Comprehensive Plan The subarea plan for the 1 -494 Corridor West calls for Regional Commercial /Office along the freeway with an upgraded street at 77"' Street. Neighborhood commercial is shown at 76` h Street and Knox Avenue and single family high density housing is shown north of the regional commercial area. Lyndale Gateway The Lyndale Gateway is bordered by the alley east of Garfield Avenue and Aldrich Avenue between 76th and 77th Streets. This area was first identified for redevelopment in the Interstate-Lyndale- Nicollet (ILN) Redevelopment Plan which was completed in 1985. Several components of that plan, most notably the Shops at Lyndale development, have been completed. In 1996 the Hoisington- .Koegler Group completed a new plan for South Lyndale Avenue. The plan, which was conducted with a high degree of community participation, recommended a complete redevelopment of Lyndale Avenue between 76th and 77th Streets. The HRA selected a concept proposed by CSM Properties and entered into a Contract for Private Redevelopment in January 1999. Subsequently, a concept plan for the redevelopment was submitted to the BRA on April 19. This concept plan included a drug store and an additional 44,000 sq. ft, of retail and office space on the west side of Lyndale Avenue. On the east side of Lyndale, CSM has proposed a 151 -unit senior complex adjoining 37,000 sq. ft. of office space. The development on both sides of the street contains a mixture of surface and underground parking. Additionally, the Lyndale Gateway Tax Increment Financing Plan allows for townhome development on the east side of Garfield Avenue between 76th and 77th Streets. While this area is not currently designated in the concept plan, its inclusion in the tax increment financing (TIF) plan is to allow for the development to occur if the majority of homeowners in that area demonstrate a preference to sell their homes. Twenty parcels, along Lyndale Avenue between 76` h and 77 "' Streets, will be decertified from the ILN tax increment project and incorporated into the Lyndale Gateway T1F plan. Comprehensive Plan The Lyndale Gateway study was underway at the same time the Comprehensive Plan was being updated. Because of this fact, the Lyndale Gateway area was designated "Plan Study" in the Comprehensive Plan, Recently, the Planning Commission approved an amendment to the Comprehensive Plan that would designate the area between Aldrich and Garfield Avenues as Community- Commercial /Office. The amendment also references the Lyndale Gateway: A Redevelopment Plan and Study as a concept for the area. The Lyndale Gateway study calls for mixed use development that has buildings oriented to the'street; the appearance of parking minimized, and accommodates pedestrian, bike, bus, as well as automobile travel. The City Council is considering the revision to the Comprehensive Plan on IVlay 24, 1999. Other Modifications to the Richfield Redevelopment Project Area There are several additional modifications to the Richfield Redevelopment Project Area which are not related to the Interchange West or Lyndale Gateway areas. The purpose of these modifications is to expand the boundary of the project area so that it corresponds to the redevelopment planning areas within the City. Specifically, these areas are the Richfield Lake Area plan RLAP) and the Airport Mitigative Area. The additional modifications are included to recognize prior redevelopment opportunities that were available to the HRA. These redevelopment initiatives pertain to the former Hat Trick Hockey property, the former FINA gas station at 66th and Elliot Avenue, and a residential property located at 7608 Pillsbury Avenue. Seven single- family residential properties located at 6913 — 6937 Penn Avenue were also purchased by the City as part of a stormwater mitigation program. These properties will be redeveloped as market -rate townhomes on residual land after the stormwater retention pond has been constructed. There may also be the opportunity to redevelop parcels including to, and adjacent to, the City's garage. The purpose of this redevelopment would be to either expand the City Garage at its current location or to relocate the Garage and redevelop the site. These properties are addressed at this time to negate the necessity of an additional project area modification in the future. ACTION TO B.E TAKEN Recommendation: Adopt a resolution finding that the modification to the Richfield Redevelopment Project Area :Redevelopment Plan, the establishment of the Interchange West and Lyndale Gateway Tax Increment Financing District, and the Interchange West and Lyndale Gateway Tax Increment Financing Plan are in conformance with the Comprehensive Plan. Basis: 1. The adoption and modification of a tax increment financing plan requires a finding of consistency by the Planning Commission. 2. The proposed uses of the Interchange West redevelopment project are consistent with the Richfield Comprehensive Plan. 3. The proposed uses of the Lyndale Gateway redevelopment project are consistent with the Lyndale Gateway: A Redevelopment Plan and Study and with the proposed revisions to the Comprehensive Plan. 4. Both the Interchange West and Lyndale Gateway areas have been identified for redevelopment. 5. The FMA entered into a Contract for Private :Redevelopment with CSM for the redevelopment of the Interchange West area on October 19, 1998 and for the redevelopment of Lyndale Gateway on January 19, 1999. 6. The approval of the plan documents is consistent with the requirements of both of the Contracts for Private Development. 7. The redevelopment and tax increment plans meet the requirements of state law and established procedures within Richfield. Alternative: Reject the attached resolution, finding that the proposed redevelopment projects do not conform to the Comprehensive Plan. RESOLUTION RESOLUTION OF THE RICHFIELD PLANN.I:NG COMM.I.SSION FINDING THAT THE M.ODIFICATI.ON TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE TAX INCREMENT FINANCING PLAN FOR THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City Council for the City of :Richfield, Minnesota, (the "City ") has proposed to adopt a Iklodification to the Redevelopment Plan for the Richfield Redevelopment Project Area and a Tax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing :District (collectively, the "Plans ") and has submitted the Plans to the Richfield Planning Commission (the "Commission ") pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plans conform with the general plans for the development and redevelopment of the City as a whole. Adopted this 25th day of May, 1999. Brenda Bjorklund, Chair ATTEST; Terry Ahlstrom, Secretary Exhibit A Additional Information for the Consideration of the Interchange West TIF District & Plan Public Notice and Opportunity for Participation Since July 1997, there have been 22 letters sent out to each property owner, household and business in the Interchange West area. An informational hotline has also been operational since last summer and has been updated regularly. The purpose of these communications has been to inform affected parties of upcoming meetings; the results of meetings, changes to the schedule; opportunities for participation and provide an update of the project. CSM's real estate consultant has also sent seven project updates to residential property owners since October 1998. There were three neighborhood meetings to discuss the redevelopment concept and the ability to "vote" for a number of redevelopment options. A survey was also conducted to identify neighborhood concerns and desires. There have also been 11 public meetings relating to CSM's development of the Interchange West area. Acquisition of Property CSM issued purchase offers to all 68 residential property owners on February 15, 1999. Since that time, approximately 50 homeowners have accepted purchase offers; this represents 74 percent of the residential properties. In March, mediation services were offered, free of charge, to all residential property owners. One household utilized mediation services, and another three were identified as "hardship cases" by CSM, thereby receiving special consideration. All commercial property owners have received purchase offers. Several have accepted their offer while others have not had sufficient time to negotiate. CSM will continue working with commercial property owners. Housing Diversity The Concept Plan for Interchange West includes a minimum of 270 units of housing of varying styles, sizes and costs. Included in the plan is a 100 -unit apartment complex. This complex will house a mixture of one and two bedroom units and will have provisions for housing families living below median income levels. CSM is also proposing at least 170 units of housing for sale. This too will vary in terms of design, size and cost. Many of the units will be multi -story townhomes, while others will be single story "flats" located above. It is intended that these units will vary in price from 130,000 to $180,000. The TIF Plan specifies that there will be a component of affordable housing in these units. Traffic The engineering firm of SEH has conducted a traffic analysis of the Interchange West area based on the development of the concept plan. The SEH study provides several transportation elements that will lessen the impact of the increased traffic flow on existing City streets. According to the traffic study, the level of service at key intersections may actually improve over existing conditions if the recommendations are followed. Many of the recommendations of the SEH study are reflected in the current concept plan. The remaining issues will be addressed by staff, the developer and the traffic consultants prior to a rezoning of the property. Pedestrian, Bicycle and Transit Use A portion of the Interchange West area is located in the Twin Cities' Transit Zone, meaning that it is located within a quarter mile of the regional transit network. The transit network is designated as such due to the availability of non- automobile transportation alternatives present. The development itself is designed with sidewalks throughout and roadways of an ample width for bicycle travel. Comprehensive Plan The Richfield Comprehensive Plan designates this area as Regional Commercial /Office, Neighborhood Commercial and High Density Residential. The Planning Commission is scheduled to make a finding on the consistency of the Tax Increment Financing Plan with the Richfield Comprehensive Plan on May 25, 1999. I.Environmental Assessment Worksheet (EAW) The developer is currently in the process of completing an environmental assessment worksheet. The rezoning necessary for the development cannot be enacted before this EAW is complete and has been reviewed by the public and by local and regional policy - makers. Recreational/CornmLinity Facilities Included in the development is a large water feature that is intended to serve a dual purpose as both a community oriented park setting and as stormwater retention. The pond will contain natural vegetation and will be encircled with pedestrian trails. Cost of Services to New Development While the development will contain more units of housing and square footage of commercial space, those areas will be designed to modern specifications. Public Safety staff have reviewed the plans several times and have ensured that 1) the site is designed using "crime prevention through environmental design" techniques; 2) streets are designed properly for emergency vehicles; 3) sprinkler systems will be added to the building where appropriate; and 4) building materials are used that will minimize fire hazards. These modern standards equate to fewer service calls per unit. Assessed Market Value & Increment Generated by Development The current assessor's estimated market value for the properties in the district is $22 million. The market value of the project is estimated as $130 million, representing an increase of $108 million. The gross annual increment has been projected at $6.2 million. The history of the estimated market value for the Interchange West area prior to redevelopment is as follows: 99 > :..;:::...:...: 99 .. .......:.:.:.:......99........: 998. ............:.::::........::999 18,390,800 18,61 600 19,492,200 20,3]3 100 21,608,300 Tax Capacity Captured in Richfield as Compared to Other Similar Communities The percentage of total tax capacity within the City of Richfield which was captured as increment was 12.26 percent for taxes payable in 1998 (data for 1999 is not yet available for comparison). The following graph compares Richfield's percentage of tax capacity which is captured as increment with other similar communities: 18.00% 18.00% 14.00% 12.00% 10.00% 8.00% 8.00% 4.00% 2.00% 0.00% Captured Tax Capacity in Other Similar Communities 4. 6, Ge1 1 i•' r` y G \ a` e o cy h0\ a yaae zS\ 0 yqV Qao\ Ct' J Q \cam G The percent of captured tax capacity is one way to measure redevelopment activity. Older aggressive communities generally have a higher captured percentage. Reasons Why Richfield Redevelops To Keep Residential Neighborhoods Vital To Retain and Attract Residents To Maintain a Stable and Growing Population To Attract Investment To Compete with Developing Suburbs Exhibit B Additional Information for the Consideration of the Lyndale Gateway TIF District & Plan Public Notice and Opportunity for Participation Since November 1998 there have been seven letters sent out to each property owner, household and business in the Lyndale Gateway area. The purpose of these communications has been to inform affected parties of upcoming meetings, the results of meetings, changes to the schedule, opportunities for participation, and provide an update of the project. There have also been four public meetings relating to CSM's development of the Lyndale Gateway area. Acquisition of Property CSM intends to issue purchase offers to all property owners in the Lyndale Gateway prior to June 21, 1999. During the negotiation period, mediation services will be made available at no cost to property owners. Housing Diversity The 151 units of assisted living senior housing meets a housing need in Richfield which is currently unsatisfied. Seventy -eight of the units will be two bedroom and seventy -three will be one bedroom. The facility will meet the needs of many seniors who fall below specified income levels; up to 40 percent of the units will be offered at a reduced rent. Pedestrian, Bicycle and Transit Use The Design Guidelines contained in thel996 Lyndale Gateway Plan state that development in this area should: make public transit an essential part of the solution, establish a character which is pedestrian in scale, and place buildings at the street frontage so that the area is more focused to bicycles and pedestrians rather than the automobile. This development would accomplish these guidelines in many ways, primarily by including transit stops as an integral part of the plan, offering pedestrian plazas, and setting the parking behind the buildings. Comprehensive Plan The Richfield Comprehensive Plan currently designates this area as a Plan Study Area but is in the process of being updated to reflect the findings of the Lyndale Gateway Redevelopment Plan. The Planning Commission is scheduled to make a finding on the consistency of the Tax Increment Financing Plan with the Richfield Comprehensive Plan on May 25, 1999. Cost of Services to New Development While the development will contain more units of housing and square footage of commercial space, those areas will be designed to modern specifications. Public Safety staff have reviewed the plans several times and have ensured that: the site is designed to using "crime prevention through environmental design" techniques, that streets are designed properly for emergency vehicles, building will be sprinklered where appropriate, and building materials are used which will minimize fire hazards. Additionally, the senior apartment complex will have on -site medical personnel. These modern standards equate to fewer service calls per unit. Assessed Market Value & Increment Generated by Development The current assessor's market value for the properties in the district is $4.4 million. The market value of the project is estimated at nearly $25 million, representing an increase of $21 million. The gross annual increment has been projected at $707,600. The history of the estimated market value for the Lyndale Gateway area prior to redevelopment is as follows: 1995: :.:....... 1996..: x 99.,7 1998 :..: 19.9.,9:.. . 3,973,000 4,012,000 4,122,000 4,298,000 4,424 000 Tax Capacity Captured in Richfield as Compared to Other Similar Communities The percentage of total tax capacity within the City of Richfield which was captured as increment was 12.26 percent for taxes payable in 1998 (data for 1999 is not yet available for comparison). The following graph compares Richfield's percentage of tax capacity that is captured as increment with other similar communities: 18.00% 18.00% 14.00% 12.00% 10.00% 8.00% 8.00% 4.00% 2.00% 0.00% Captured Tax Capacity in Other Similar Communities oc sec Na e t 3 Gec Qa e`° r G Jai oQ c' Fhe oyaa er \ yQa Qa The percent of captured tax capacity is one way to measure redevelopment activity. Older, aggressive communities generally have a higher captured percentage. Reasons _Why Richfield Redevelops To Keep Residential Neighborhoods Vital To Retain and Attract Residents To Maintain a Stable and Growing Population To Attract Investment To Compete with Developing Suburbs Draft as of May 17, 1999 Draft for Planning Commission Review TAX INCREMENT FINANCING PLAN for the establishment of THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT a scattered site redevelopment district) within THE RICHFIELD REDEVELOPMENT PROJECT AREA RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD HENNEPIN COUNTY STATE OF MINNESOTA Public Hearing: June 14, 1999 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive Roseville, Minnesota 55113-1105 Phone: (651) 697 -8500 Fax: (651) 697 -8555 E -mail: info @ehlers- inc.com Web Site: www.ehiers- inc.com TABLE OF CONTENTS r reference purposes only) SECTION I - MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA . ............................... 1 -1 Foreword........................................ ............................1 -1 Subsection B. Statement of Public Purpose ...... ............................... 1 -1 Subsection F. Boundaries of the Richfield Redevelopment Project Area .............. 1 -1 Subsection G. Parcels for Acquisition ........... ............................... 1 -1 Subsection J. Development Activities in.the.Richfield Project Area .................... 1 -2 APPENDIX A - BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREA...................................... ............................... A -1 SECTION I MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA Foreword The following text represents a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area. Generally, the substantive changes include expanding the boundaries of the Richfield Redevelopment Project Area; clarifying parcels to be acquired by the Housing and Redevelopment Authority and the City of Richfield; and modifying the Redevelopment Plan for the Richfield Redevelopment Project Area to include the establishment of the Interchange West and Lyndale Gateway Tax Increment Financing District. For further information, a review of the Redevelopment Plan for the Richfield Redevelopment Project Area, adopted June 14, 1993, is recommended. It is available in the Community Development Department at the City of Richfield. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Richfield Redevelopment Project Area. Subsection B. Statement of Public Purpose See also the State of Public purpose found in Section B of the Redevelopment Plan for the Richfield Redevelopment Project Area, dated June 14, 1993. Subsection F. Boundaries of the Richfield Redevelopment Project Area The boundary for the Richfield Redevelopment Project Area is being expanded to confrom with current redevelopment plan areas and to include the area in the Interchange West and Lyndale Gateway Tax Increment Financing District. See Appendix A of this Modification to the Redevelopment Program for the Richfield Redevelopment Project Area and the District. Subsection G. Parcels for Acquisition The Housing and Redevelopment Authority may acquire the parcels listed in the Tax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District. However, it is anticipated that the developers will be responsible for acquisition related to the Interchange West and Lyndale Gateway Tax Increment Financing District. City of Richfield Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area 1 -1 In addition, the following parcels have been designated for acquisition: Parcel number 26- 028 -23 -32 -0033 26- 028 -23 -31 -0046 34- 028 -23 -34 -0067 34- 028 -24 -34 -0070 34- 028 -34 -34 -0049 34- 028 -34 -34 -0068 34- 028 -34 -34 -0052 28- 028 -24 -33 -0069 28- 028 -24 -33 -0068 28- 028 -24 -33 -0067 28- 028 -24 -33 -0066 28- 028 -24 -33 -0065 28- 028 -24 -33 -0064 28- 028 -24 -33 -0063 Use Housing Retail space Housing Mortuary Housing Housing City Garage Housing and storm water retention Housing and storm water retention Housing and storm water retention Housing and storm water retention Housing and storm water retention Housing and storm water retention Housing and storm water retention Subsection J. Development Activities in the Richfield Project Area The Redevelopment Plan for the Richfield Redevelopment Project Area is hereby modified to include redevelopment and development activities to facilitate the construction of the following projects: a. b. C. d. e. f. Motel Conference Office buildings Retail Facilities Apartments Town homes Senior housing City of Richfield Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area 1 -2 APPENDIX A BOUNDARY MAPS OF THE MODIFIED RICHFIELD REDEVELOPMENT PROJECT AREA City of Richfield Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area A -I Hat HILL .. 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Redevelopment Plan Overview .... ............................... 2 -1 Subsecti n 2 -5. Legal Description of Property in the Interchange West and Lyndale Gateway Tax. Increment. Financing District .. ............................... 2 -2 l Subsection 2 -6. Classification of the Interchange West and Lyndale Gateway Tax Increment Financing District ............... ............................... 2 -2 Subsection 2 -7. Original Tax Capacity and Tax Rate ............................... 2 -3 Subsection 2 -8. Estimated Captured Net Tax Capacity Value/Increment ................ 2 -4 Subsection 2 -9. Property To Be Acquired ......... ............................... 2 -4 Subsection 2 -10. Uses of Funds .................. ............................... 2 -5 Subsection 2 -11. Sources of Revenue/Bonded Indebtedness .......................... 2 -5 Subsection 2 -12. Definition of Tax Increment Revenues ............................. 2 -6 Subsection 2 -13. Duration of the Interchange West and Lyndale Gateway Tax Increment Subsection 2 -27. Fiscal Disparities Election ....... ............................... 2 -17 Subsection 2 -28. Other Limitations on the Use of Tax Increment ..................... 2 -19 Subsection 2 -29. State Tax Increment Financing Aid ............................... 2 -20 Subsection 2 -30. County Road Costs ............. ............................... 2 -20 Subsection 2 -31. Economic Development and Job Creation .......................... 2 -21 Subsection 2 -32. Summary ........................ ...........................2 -21 Financing District .................. ............................2 -6 Subsection 2 -14. Estimated Impact on Other Taxing Jurisdictions ...................... 2 -7 Subsection 2 -15. Modifications to the Interchange West and Lyndale Gateway Tax Increment Financing District .................. ............................2 -7 Subsection 2 -16. Administrative Expenses ......... ............................... 2 -8 Subsection 2 -17. Limitation of Increment .......... ............................... 2 -9 Subsection 2 -18. Use of Tax Increment ........... ............................... 2 -10 Subsection 2 -19. Notification of Prior Planned Improvements ....................... 2 -11 Subsection 2 -20. Excess Tax Increments .......... ............................... 2 -11 Subsection 2 -21. Requirements for Agreements with the Developer ................... 2 -11 Subsection 2 -22. Assessment Agreements .......................... I ............ 2 -12 Subsection 2 -23. Administration of the Interchange West and Lyndale Gateway Tax Increment Financing District .............. ............................... 2 -12 Subsection 2 -24. Financial Reporting Requirements ............................... 2 -12 Subsection 2 -25. Municipal Approval and Public Purpose of the Interchange West Portion of the TIF District ....................... ...........................2 -14 Subsection 2 -26. Municipal Approval and Public Purpose of the Lyndale Gateway Portion of the TIF District ....................... ...........................2 -16 Subsection 2 -27. Fiscal Disparities Election ....... ............................... 2 -17 Subsection 2 -28. Other Limitations on the Use of Tax Increment ..................... 2 -19 Subsection 2 -29. State Tax Increment Financing Aid ............................... 2 -20 Subsection 2 -30. County Road Costs ............. ............................... 2 -20 Subsection 2 -31. Economic Development and Job Creation .......................... 2 -21 Subsection 2 -32. Summary ........................ ...........................2 -21 APPENDIX A - PROJECT DESCRIPTION .............. ............................... A -1 APPENDIX B - BOUNDARY MAPS OF THE RICHFIELD REDEVELOPMENT PROJECT AREABOUNDARY AND THE INTERCHANGE WEST AND LYNDALE GATEWAY TIF DISTRICT ....... B -I APPENDIX C - LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE INTERCHANGE WEST AND LYNDALE GATEWAY TIF DISTRICT ............ C -1 TIMATED CASH FLOW FOR THE INTERCHANGE WEST AND LYNDALE TIF DISTRICT ..................... ............................... D -1 MINNESOTA BUSINESS ASSISTANCE FORM ESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) ...... E -1 APPENDIX F - REDEVELOPMENT QUALIFICATIONS FOR THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT .................. F -1 SECTION II TAX INCREMENT FINANCING PLAN FOR THE INTERCHANGE WEST AND L YNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT Subsection 2 -1. Forel' word The City of Richfidd((;ity "), the Richfield Housing and Redevelopment Authority (the "HRA "), staff and consultants have prepared the following information to expedite the establishment of the Interchange West and Lyndale Gateway Tax Increment Financing District ( "Interchange West and Lyndale Gateway Tax Ih reTent- an in District "), a scattered site redevelopment tax increment financing district, located in the Richfeld'Redevelopment Project Area. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City and HRA have certain statutory powers pursuant to Minnesota Statutes ( "MV), Sections 469.001 through 469.047, inclusive, as amended, and M.S., Sections 469.174 through 469.179, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act "), to assist in financing public costs related to this project. This Section contains the Tax Increment Financing Plan (the "Plan ") for the Interchange West and Lyndale Gateway Tax Increment Financing District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. Subsection 2 -3. Statement of Objectives The Interchange West project portion of the TIF District currently consists of 98 parcels of land and adjacent and internal rights -of -way. The Interchange West project is created to facilitate redevelopment of existing buildings in the City of Richfield. The anticipated use is a 350 room motel, approximately 375,0000 square foot office building, a 50,000 to 70,000 square feet of retail, 100 unit apartment and 250 town homes. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. The Lyndale Gateway project portion of the TIF District currently consists of 37 parcels of land and adjacent and internal rights -of -way. The Lyndale Gateway project is created to facilitate 50,000 square feet of retail space, 151 apartments (60 of which will be low to moderate income housing) and 30 town homes in the City of Richfield. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. The activities contemplated in the present Modification to the Redevelopment Plan and the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Interchange West and Lyndale Gateway Tax Increment Financing District and the Richfield Redevelopment Project Area. Subsection 2 -4. Redevelopment Plan Overview Property to be Acquired - Selected property located within the Interchange West and Lyndale Gateway Tax Increment Financing District may be acquired by the City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -1 City or HRA and is further described in this Plan. 2. Relocation - Complete relocation services are available pursuant to M.S., Chapter 117 and ofh r relevant state and federal laws. 3. Upornproval of development agreement relating to the project and completionr.;, of the nece s iary legal requirements, the City or HRA may sell to a developer selected properties that they may acquire within the Interchange West and LyndaleGateway Tax Increment Financing District or may lease land or facilities to adeveloper. 4. 'The City or HRA may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public streets work within the Interchange West and Lyndale Gateway Tax Increment Financing District. Subsection 2 -5. Legal Description of Property in the Interchange West and Lyndale Gateway Tax Increment Financing District Interchange West and Lyndale Gateway Tax Increment Financing District encompasses all property and adjacent rights -of -way identified by the parcels listed in Appendix C. Please see the map in Appendix B for further information on the location of the Interchange West and Lyndale Gateway Tax Increment Financing District. Subsection 2 -6. Classification of the Interchange West and Lyndale Gateway Tax Increment Financing District The City and HRA, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.179, as amended, inclusive, find that the Interchange West and Lyndale Gateway Tax Increment Financing District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions ofa project, within which the authorityfinds by resolution that one of the following conditions, reasonably distributed throughout the district, exists: 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 ofthe buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or 2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storagefacilities or excessive or vacatedrailroad rights -of -way. b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination ofdeficiencies in essential utilities andfacilities, light and ventilation, fire protection including adequate egress, layout and condition of interior City of Richfiel(Tax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -2 partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. c) A building , s,hot 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 1,5 percent of the cost of constructinga new structure of the same square footage and type on` the fsite 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 thesfie, type, and age of the building, the average cost ofplumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard... e) For purposes ofthis subdivision, aparcel is not occupiedby buildings, streets, utilities or other improvements until 15 percent of the area of the parcel contains improvements. In meeting the statutory criteria described above, the City and HRA rely on the following facts and findings: Interchange West and Lyndale Gateway Tax Increment Financing District is a scattered site redevelopment district consisting of 125 parcels An inventory of the parcels shows that at least 70 percent of the parcels in the Interchange West and Lyndale Gateway Tax Increment Financing District are occupied as defined in the TIF Act. An inspection of the buildings located within the Interchange West and Lyndale Gateway Tax Increment Financing District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix F) Subsection 2 -7. Original Tax Capacity and Tax Rate Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. ],the Original Net Tax Capacity ONTC) as certified for the Interchange West and Lyndale Gateway Tax Increment Financing District is based on the market values placed on the property by the assessor in 1999 for taxes payable 2000. Pursuant to M.S., Section 469.177, Subds. I and 2, the County Auditor shall certify in each year (beginning in the payment year 1999) the amount by which the original value 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 adjustments, negotiated or court- ordered abatements; 4. change in the use of the property and classification; 5. change in state law governing class rates; or 6. change in connection with previously issued building permits. In any year in which the current Net Tax Capacity value of the Interchange West and Lyndale Gateway Tax Increment Financing District declines below the ONTC, no value will be captured and no tax increment will City of Richfield -ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -3 be payable to the City or HRA. The original local tax rate forthe Interchange West and Lyndale Gateway Tax Increment Financing District will be the local tax rate fbr,axes.payable 1999. The Original Tax Capaclty;and the Original Local Tax Rate for the Interchange West and Lyndale Gateway Tax Increment Financin& istrict appear in the table below. l'' interchange WPCt Lyndale Gateway Original Tax Capacity Value 504,008 94,594 K Percent- Retained -by City 100% 100% 4 . r Original Local Tax Rate 1.50904 1.50904 Subsection 2 -8. Estimated Captured Net Tax Capacity Value/Increment Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the Interchange West and Lyndale Gateway Tax Increment Financing District, within the Richfield Redevelopment Project Area, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The City and HRA request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2000. The project tax capacity listed is an estimate of values when the project is completed. Project Estimated Tax Capacity upon Completion of Project (PTC) 4,627,058 802,197 Original Estimated Net Tax Capacity (ONTC) 504,008 94,594 Estimated Captured Tax Capacity (CTC) 4,123,050 707,603 Estimated Annual Tax Increment CTC x Local Tax Rate) $6,221,847 707,601 Subsection 2 -9. PropeM To Be Acquired The City or HRA may acquire any parcel within the Interchange West and Lyndale Gateway Tax Increment Financing District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City or HRA only in order to accomplish one or more ofthe 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. The following are conditions under which properties not designated to be acquired may be acquired: City of Richfieldax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 24 The City or HRA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs.,;,..` Subsection 2 -10. Uses of Funds Currently under consideration for the Interchange West and Lyndale Gateway Tax Increment Financing District is a,pfoposal to facilitate redevelopment of existing buildings. The City and HRA have determined that it w ill.be,nedessary to provide assistance to the project for certain costs. The City has studied the feasibility ofthe development or redevelopment of property in and around the Interchange West and Lyndale Gateway4Tax Increment Financing District. 'To facilitate the establishment and development or redevelopment of the Interchange West and Lyndale Gateway Tax Increment Financing District, this Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the Interchange West and Lyndale Gateway Tax Increment Financing District is outlined in the following table. Uses of Funds Interchange Lyndale Land Acquisition, Site Improvements Public Improvements, Public Utilities And Other Public Improvements Interest Administrative Costs (up to 10 %) 50,000,000 9,000,000 47,902,000 7,953,300 10,878,000 1,883,700 TOTAL $108,780,000 $18,837,000 The City will be using some of the tax increment designated for land acquisition to provide down payment assistance to a variety of prospective home buyers. Estimated costs associated with the Interchange West and Lyndale Gateway Tax Increment Financing District are subject to change among categories without a modification to this Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuantto M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the Interchange West and Lyndale Gateway Tax Increment Financing District will be spent on activities related to development or redevelopment outside of the Interchange West and Lyndale Gateway Tax Increment Financing District but within the boundaries of the Richfield Redevelopment Project Area, (including administrative costs, which are considered to be spent outside of the Interchange West and Lyndale Gateway Tax Increment Financing District) subject to the limitations as described in this Plan. Subsection 2 -11. Sources of RevenueBonded Indebtedness Public improvement 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 City or HRA reserves the right to use other sources of revenue legally applicable to the Modification to the Redevelopment Plan and the 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 City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -5 developer and investment income, to pay for the estimated public costs. The City or HRA reserves right to incur bonded indebtedness or other indebtedness as a result of the 11 Plan. As presently proposed \the project will be financed by a pay -as- you -go note. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness or other indebtednessrelated to the use of tax increment financing will not exceed $59,000,000 without a modification tothe;Plan.pursuant to applicable statutory requirements. This provision does-not obligate the City or HRA to incur debt. The City or HRA will issue bonds or incur other debt nly, upon the determination that such action is in the best interestof the City. The City or HRA may alsQ.finance the activities to be undertaken pursuant to the Plan through loans from funds of the City orLHRA onto reimburse the developer on a "pay -as- you -go" basis for eligible activities paid for by the devello er`. The estimated sources of funds for the Interchange West and Lyndale Gateway Tax Increment Financing District are contained in the table below. Sources of Funds Interchange Lyndale Tax Increment $103,600,000 $17,940,000 Local Contribution 5,180,000 897,000 TOTAL $108,780,000 $18,837,000 Subsection 2 -12. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. the proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; 3. repayments of loans or other advances made by the authority with tax increments; and 4. interest or other investment earnings on or from tax increments. Subsection 2 -13. Duration of the Interchange West and Lyndale Gateway Tax Increment Financing District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the Interchange West and Lyndale Gateway Tax Increment Financing District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of the Interchange West and Lyndale Gateway Tax Increment Financing District will be 25 years from the date of receipt of the first increment by the City or HRA. The date of receipt by the City of Richfield of the first tax increment will be approximately 2002. Thus, it is estimated that the Interchange West and Lyndale Gateway Tax Increment Financing District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2026, or when the Plan is satisfied. If increment is received in 2001 due to inflation, the District will terminate in 2025. The City or HRA does reserve the right to decertify the Interchange West and Lyndale Gateway Tax City of Richfiela'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -6 Increment Financing District prior to the legally required date. Subsection 2 -14. Estimated Impact on Other Taxing Jurisdictions r > The estimated impact ori'othe taxing jurisdictions assumes construction which would have occurred without the creation of the Interchange West and Lyndale Gateway Tax Increment Financing District. If the construction is a<result,f toax increment financing, the impact is $0 to other entities. Notwithstanding, the fact that the fiscal'impact on the other taxing jurisdictions is $0 due to the fact that the construction would not have occurred - without the assistance of the City or HRA, the following estimated impact of the Inte change West "and Lyndale Gateway Tax Increment Financing District would be as follows if the "but for" test was,not met: IMPACT ON TAX BASE 1997/1998 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Protect Completion to Entity Total Hennepin County 936,486,071 4,830,653 0.5158% I.S.D. No. 280 26,436,495 4,830,653 18.2727% City of Richfield 17,976,447 4,830,653 26.8721% IMPACT ON TAX RATES The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1998/Pay 1999 rate. The total net capacity for the entities listed above are based on Pay 1999 figures. The Interchange West and Lyndale Gateway Tax Increment Financing District will be certified under the actual 1998/1999 rates. Subsection 2 -15. Modifications to the Interchange West and Lyndale Gateway Tax Increment Financing District In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of the Richfield Redevelopment Project Area or the Interchange West and Lyndale Gateway Tax Increment Financing District; 2. 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 City of Richfiela'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -7 1998/1999 Percent Potential Extension Rates of Total CTC Taxes Hennepin County 0.409940 27.17% 4,830,653 1,980,278 I.S.D. No. 280 0.721270 47.80% 4,830,653 3,484,205 City of Richfield 0.285940 18.95% 4,830,653 1,381,277 Metro 0.060350 4.00% 4,830,653 291,530 Other 0.031540 2.09% 4,830,653 152,359 Total 1.509040 100.00% 7,289,649 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the 1998/Pay 1999 rate. The total net capacity for the entities listed above are based on Pay 1999 figures. The Interchange West and Lyndale Gateway Tax Increment Financing District will be certified under the actual 1998/1999 rates. Subsection 2 -15. Modifications to the Interchange West and Lyndale Gateway Tax Increment Financing District In accordance with M.S., Section 469.175, Subd. 4, any: 1. reduction or enlargement of the geographic area of the Richfield Redevelopment Project Area or the Interchange West and Lyndale Gateway Tax Increment Financing District; 2. 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 City of Richfiela'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -7 or decrease the amount of interest on the debt to be capitalized; 3. increase in the portion of the captured net tax capacity to be retained by the City or HRA; 4. increase in total stimated tax increment expenditures; or 5. designation of<a \ddtional property to be acquired by the City or HRA, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan; ;t The geographic Area bf the Interchange West and Lyndale Gateway Tax Increment Financing District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts forthe d termination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, parag apli (a), clauses (1) to (5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the Richfield Redevelopment Project Area or the Interchange West and Lyndale Gateway Tax Increment Financing District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the Interchange West and Lyndale Gateway Tax Increment Financing District equals or exceeds the net tax capacity of those parcel(s) in the Interchange West and Lyndale Gateway Tax Increment Financing District's original net tax capacity or (B) the City agrees that, notwithstanding MS., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the Interchange West and Lyndale Gateway Tax Increment Financing District. The City or HRA must notify the County Auditor of any modification that reduces or enlarges the geographic area of the Interchange West and Lyndale Gateway Tax Increment Financing District or the Richfield Redevelopment Project Area. Modifications to the Interchange West and Lyndale Gateway Tax Increment Financing District in the form of a budget modification or an expansion of the boundaries will be recorded in the Plan. Subsection 2 -16. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd. 3, administrative expenses means all expenditures of the City or HRA, 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, directlyconnectedwith the physical development of the real property in the district; relocation benefits paid to or services provided forpersons 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 M.S., Section 469.178. Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the Interchange West and Lyndale Gateway Tax Increment Financing District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Richfield Redevelopment Project Area, whichever is less. City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -8 Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with the Interchange West and Lyndale Gateway Tax Increment Financing Dist ict'The county may require payment of those expenses by February 15 of the year following the year th6 expenses were incurred. Pursuant to M.S., Se6tion,469. 177, Subd. 11, the county treasurer shall deduct an amount equal to 0.25 percent of any increment >distributed to the City or HRA and the county treasurer shall pay the amount deducted to the state treasurer for deposit in the state general fund to be appropriated to the State Auditor c. for the cost of financial reporting of tax increment financing information and the cost of examining and auditing; uthorities' use of tax increment financing. Subsect on2 -17. Limitation of Increment y Pursuant to M.S., Section 469.176, Subd. 1(a), no tax increment shall be paid to the City or HRA for the Interchange West and Lyndale Gateway 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 Interchange West and Lyndale Gateway Tax Increment Financing District by the County Auditor unless within the three (3) year period: a) bonds have been issued pursuant to M.S., Section 469.178, or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165, or b) the City or HRA has acquired property within the Interchange West and Lyndale Gateway Tax Increment Financing District, or c) the City or HRA has constructed or caused to be constructed public improvements within the Interchange West and Lyndale Gateway Tax Increment Financing District. The bonds must be issued, or the City or HRA must acquire property or construct or cause public improvements to be constructed by approximately March, 2002. The tax increment pledged to the payment of bonds and interest thereon may be discharged and may be terminated if sufficient funds have been irrevocably deposited in the debt 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 M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation ofproperty or other site preparation, including qualified improvement ofa 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 net tax capacity ofthat parcel shall be excluded from the original net tax capacity of the tax increment financing City of RichfieliTax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -9 district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the author"ityjshdll certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner .of revenue and add it to the original net tax capacity of the tax increment fnancing,district. \The county auditor must enforce the provisions of this subdivision... For purposes of this subdivision, qualified improvements of a street 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. ir}HRA or a property,owner must improve parcels within the Interchange West and Lyndale ax Increment Financing District by approximately March, 2003. Subsection 2 -18. Use of Tax Increment The City or HRA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the Interchange West and Lyndale Gateway Tax Increment Financing District for the following purposes: 1. to pay the principal of and interest on bonds used to finance a project; 2. to finance, or otherwise pay public redevelopment costs of the Richfield Redevelopment Project Area pursuant to the M.S., Sections 469.001 to 469.047;_ 3. to pay for project costs as identified in the budget; 4. to finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; S. to pay principal and interest on any loans, advances or other payments made to the City or HRA or for the benefit of the Richfield Redevelopment Project Area 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 interest on tax increment bonds or bonds issued pursuant to the Plan or pursuant to M.S., Chapter 462C and M.S., Sections 469.152 through 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 M.S., Chapter 462C and M.S., Sections 469.152 through 469.165, or both. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the Interchange West and Lyndale Gateway Tax Increment Financing District will be paid by Hennepin County to the City of Richfield for the Tax Increment Fund of said the Interchange West and Lyndale Gateway Tax Increment Financing District. The City or HRA will pay to the developer(s) 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. The increment funds not specified to go to the developer as reimbursement will be used for City or HRA administration (up to 10 percent) and the costs of public improvement activities outside the Interchange West and Lyndale Gateway Tax Increment Financing District. City of RichfieltTax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -10 Subsection 2 -19. Notification of Prior Planned Improvements The City or HRA shall aftersdue and diligent search, accompany its request for certification to the County Auditor or its notice;of th lnterchange West and Lyndale Gateway Tax Increment Financing District r." enlargement with a listing ofaflpropertieswithin the Interchange West and Lyndale Gateway Tax Increment Financing District orarea'of enlargement for which building permits have been issued during the eighteen 18) months immediatel\ y- preceding approval of the Plan by the municipality pursuant to M.S., Section 469.175, Subd, 3 /Th County Auditor shall increase the original value of the Interchange West and Lyndale Gateway Tax Increment Financing District by the value of improvements for which a building permit was issued.\ Pursuantrto M.S., Section 469.177, Subd 4, the City has reviewed the area to be included in the In West and Lyndale Gateway Tax Increment Financing District and found no parcels for which'building permits have been issued during the 18 months immediately preceding approval of the Plan by the City and HRA. Subsection 2 -20. Excess Tax Increments Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the Plan, including the amount necessary to cancel any tax levy as provided in M.S., Section 475.61, Subd. 3, the City or HRA shall use the excess amount to do any of the following: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the City or HRA may, subject to the limitations set forth herein, choose to modify the Plan in order to finance additional public costs in the Interchange West and Lyndale Gateway Tax Increment Financing District or the Richfield Redevelopment Project Area. Subsection 2 -21. Requirements for Agreements with the Developer The City or HRA will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City or HRA to demonstrate the conformance of the development with city plans and ordinances. The City or HRA may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the Interchange West and Lyndale Gateway Tax Increment Financing District as set forth in the Plan shall at any time be owned by the City or HRA as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178, to which tax increments from property acquired is pledged, without the City or HRA having, prior to acquisition in excess of 25 percent of the acreage, concluded an agreement City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -11 for the development or redevelopment of the property acquired and which provides recourse for the City or HRA should the development or redevelopment not be completed. Subsection 2 -22. Pursuant to M.S., Section 469.177, Subd. 8, the City or HRA may enter into an agreement in recordable form j" \ with the developer,O property within the Interchange West and Lyndale Gateway Tax Increment Financing District which.establ shes a minimum market value of the land and completed improvements for the duration of the InterchangelMest and Lyndale Gateway Tax Increment Financing District. The assessment agreement shall , presented to the assessor who shall review the plans and specifications for the improvements Constructed, eview the market value previously assigned to the land upon which the improvements are to be'constr ucted and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market Subsection 2 -23. Administration of the Interchange West and Lyndale Gateway Tax Increment Financing District Administration of the Interchange West and Lyndale Gateway Tax Increment Financing District will be handled by the HRA Director of the City of Richfield. Subsection 2 -24. Financial Reporting Requirements A. Filing with State Auditor, County Auditor, County Board and School Board: Pursuant to M.S., Section 469.175, Subd. 5, the City or HRA must file an annual disclosure report for all tax increment financing districts, including the Interchange West and Lyndale Gateway Tax Increment Financing District. The report shall be filed with the County Board, County Auditor, School Board, and the State Auditor on or before August 1 of each year. The report to be filed by the City or HRA shall include the following information: 1. the amount and source of revenue in the tax increment account; 2. the amount and purpose of expenditures from the account; 3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond indebtedness; 4. the original net tax capacity of the Interchange West and Lyndale Gateway Tax Increment Financing District; 5. the captured net tax capacity retained by the City or HRA; 6. the captured net tax capacity shared with other taxing districts; 7. the tax increment received; and 8. any additional information necessary to demonstrate compliance with the tax increment financing plan. B. Newspaper Statement: M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City showing: 1. the tax increment received and expended in that year, 2. the original net tax capacity, 3. captured net tax capacity, City of Richfiel(Tax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -12 4. amount of outstanding bonded indebtedness, 5. the amount of the Interchange West and Lyndale Gateway Tax Increment Financing District's increment paid to other governmental bodies, 6. the amount,paid:f6r administrative costs, 7. the sumof increments paid, directly or indirectly, for activities and improvements located outsi de tifithe Interchange West and Lyndale Gateway Tax Increment Financing District, information the City or HRA deems necessary. C. 'State`Auditoi filing for the Interchange West and Lyndale Gateway Tax Increment Financing District: "Pursuant to M.S., Section 469.175, Subd. 6, the City or HRA must annually submit to the State Auditor, onlor before August 1, a financial report which shall: 1. provide for full disclosure of the sources and uses of the public funds in the Interchange West and Lyndale Gateway Tax Increment Financing District; 2. permit comparison and reconciliation with the City and HRA's accounts and financial reports; 3. permit auditing of the funds expended on behalf of the Interchange West and Lyndale Gateway Tax Increment Financing District or that is funded in part or whole through the use of a development account funded with tax increments 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: the original net tax capacity of the Interchange West and Lyndale Gateway Tax Increment Financing District; the captured net tax capacity of the Interchange West and Lyndale Gateway Tax Increment Financing District, including the amount of any captured net tax capacity shared with other taxing districts; the amount budgeted under the Plan, and the actual amount expended for, at least, the following categories (for the reporting period and for the duration of the Interchange West and Lyndale Gateway Tax Increment Financing District): 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 the total costs of the property to the City or HRA and the price paid the developers (for properties sold to developers); the amount of increments rebated or paid to developers or property owners for 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 West and Lyndale Gateway Tax Increment Financing District. D. State Auditor filing for all Tax Increment Financing Districts: Pursuant to M.S., Section 469.175, City of RichfieliTax Increment Financing Plan for the Interchange West and Lyndalc Gateway Tax Increment Financing District 2 -13 Subd. 6a, the City or HRA must also annually report to the State Auditor before or on August I of each year the following amounts for the entire City: I. the total,,prihcipaVamount 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);&her tax increment financing bonds; and for each tax increment financing district within the City: the type of tax increment financing district; the date on which the district is required to be decertified; 3. the amount of any payments and the value of in -kind benefits, such as physical improvements and the uses 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 each district; and 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. If the City fails to make a disclosure or submit a report containing the information required by Section 469.175 sudb. 5, 6 and 6a, the State Auditor will direct the County Auditor to hold the distribution of tax increment from the Interchange West and Lyndale Gateway Tax Increment Financing District. Subsection 2 -25. MunicipalApprovaland PublicPurpose of the Interchange West Portion ofthe TIF District The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the Interchange West Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that the Interchange West portion of the Interchange West and Lyndale Gateway Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a) (1). Interchange West portion consists of 98 parcels, with plans to redevelop the area for housing and commercial purposes. At least 70 percent of the area in the parcels in the Interchange West portion of the Tax Increment Financing District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in the Interchange West portion of the Tax Increment Financing District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be City of Richfieldax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -14 expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use oftax incrementftnancing would be less than the increase in the market value estimated to result from the propoAed-deevelopment after subtracting the present value of the projected tax increments for the maximum duration of the Interchange West and Lyndale Gateway Tax Increment Financing District Permitted,bv the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely thibqghprivate investment within the reasonablyforeseeablefuture: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount ofcommercial /industrial property for expansion adjacent to the existing project, the incompatible land uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance (see attachment in Appendix F). The increased market value of the site that could reasonable be expected to occur without the use of tax incrementfinancing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF Districtpermitted by the Plan: The City supported this finding on the grounds that the cost of site and public improvements and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. Therefore, the City reasonably determines that no other redevelopment of any kind is anticipated on this site without substantially similar assistance being provided to the development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of the Interchange West and Lyndale Gateway Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the Interchange West project of the Interchange West and Lyndale Gateway Tax Increment Financing District, the total increase in market value would be up to $129,303,942. The present value of tax increments from the Interchange West and Lyndale Gateway Tax Increment Financing District is estimated to be $28,175,217. It is the Council's finding that no development with a market value of greater than $101,128,725 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition, site improvements, public improvements and redevelopment in the general area of the Interchange West and Lyndale Gateway Tax Increment Financing District (see Cashflow in Appendix D). 3. Finding that the Tax Increment Financing Planfor the Interchange West project ofthe Interchange West and Lyndale Gateway Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on May 25, 1999. The Planning Commission found that the Plan conforms to the general development plan of the City. City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -15 4. Finding that the Tax Increment Financing Plan for the Interchange West project ofthe Interchange West and Lyndale Gateway Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield R46 opm nt Project Area by private enterprise. The project 6`be:'assisted by the Interchange West project in the Interchange West and Lyndale GatewayrT NI_ciement Financing District will result in increased employment and housing opportuniti -)in/the City and the State of Minnesota, the replacement of substandard properties, increased, base of the State and add a high quality development to the City. Subsection 2 =26. Municipal Approvaland PublicPurposeofthe Lyndale Gateway Portion of the TIF District The ,reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that the Lyndale Gateway project in the Interchange West and Lyndale Gateway Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a) (1). The Lyndale Gateway portion of the Interchange West and Lyndale Gateway Tax Increment Financing District consists of 37 parcels, with plans to redevelop the area for housing and commercial purposes. At least 70 percent of the area in the parcels in the Lyndale Gateway project are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in the Lyndale Gateway project, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use oftax 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 Interchange West and Lyndale Gateway Tax Increment Financing District permitted by the Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely throughprivate investment within the reasonablyforeseeablefuture: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the -high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount of commercial /industrial property for expansion adjacent to the existing project, the incompatible land uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance (see attachment in Appendix F). The increased market value of the site that could reasonable be expected to occur without the use City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -16 of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum durationof the TIF District permitted by the Plan: The City supported this finding on the grounds that tl `6ibst of site and public improvements and utilities add to the total redevelopment cost. Histoncally, site and public improvements costs in this area have made redevelopment infeasible withouttax increment assistance. This site has been marketed forat least 14 yearswithout success.lTherefore, the City reasonably determines that no other redevelopment of any kind is anticipated o'h this site without substantially similar assistance being provided to the development. Accordingly,'the increased market value anticipated without tax increment assistance is $0. A- comparative analysis of estimated market values both with and without establishment of the If Interchange West and Lyndale Gateway Tax Increment Financing District and the use of tax mcrements has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the Lyndale Gateway project in the Interchange West and Lyndale Gateway Tax Increment Financing District, the total increase in market value would be up to $24,646,406. The present value of tax increments from the Lyndale Gateway project in the Interchange West and Lyndale Gateway Tax Increment Financing District is estimated to be 4,339,493. It is the Council's finding that no development with a market value of greater than 20,306,913 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition, site improvements, public improvements and redevelopment in the general area of the Interchange West and Lyndale Gateway Tax Increment Financing District (see Cashflow in Appendix D). 3. Finding that the Tax Increment Financing Plan for the Lyndale Gatewayproject of 1he Interchange West and Lyndale Gateway Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on May 25, 1999. The Planning Commission found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for the Lyndale Gateway project of the Interchange West and Lyndale Gateway Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. The project to be assisted by the Interchange West and Lyndale Gateway Tax Increment Financing District will result in increased employment and housing opportunities in the City and the State of Minnesota, the replacement of substandard properties, increased tax base of the State and add a high quality development to the City. Additional findings are set forth in the Authorizing Resolution of the City. Subsection 2 -27. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City or 14RA may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause a, (outside the Interchange West and Lyndale Gateway Tax Increment Financing District) are followed, the following method of computation shall apply: City of Richfielffax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -17 1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F Where the original net.lax capacity is equal to or greater than the current net tax capacity, there is no captt d,net:tax capacity and no tax increment determination. Where the original net tax capacity is less-than the current net tax capacity, the difference between the original net tax capbtty`and the current net tax capacity is the captured net 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 net tax capacity of theJ thority. 0".\ The county auditor shall exclude the retained captured net tax capacity ofthe authorityfront the net tax capacity of the local taxing districts in determininglocal taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the Interchange West and Lyndale Gateway Tax IncrementFinancing District) are followed, the fol lowing method of computation shall apply: 1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial - industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6 Where the original net tax capacity is equal to or greater than the current net 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 net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereofwhich the authority has designated, in its tax incrementfinancingplan, to share with the local taxing districts is the retained captured net tax capacity of the authority. 2) The county auditorshall exclude the retained captured net tax capacity ofthe authorityfrom the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City or HRA shall submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the City or HRA elected. The City of Richfield will choose to calculate fiscal disparities by clause b. According to M.S., Section 469.177, Subd. 3: City of Richfiela'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -18 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 eectlto, change its election from the method of computation in paragraph (a) to the method in1paragraph (b). Subsection 2 -28. I . General Limitations. All revenue derived from tax increment shall be used in accordance with the Plan. Tl e- revenues shall be used to finance, or otherwise pay public redevelopment costs of the Richfeld "Redevelopment Project Area pursuant to the M.S., Sections 469.001 to 469.047; t"of he `e revenues shall not be used to circumvent existing levy limit law. No revenues derived from x increment shall be used for the acquisition, construction, renovation, operation or maintenance 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, recreational or conference purposes and not primarily for conducting the business of the municipality. 2. Pooling Limitations. At least 75 percent of tax increments from the Interchange West and Lyndale Gateway Tax Increment Financing District must be expended on activities in the Interchange West and Lyndale Gateway Tax Increment Financing District or to pay bonds, to the 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 tax increments may be expended, through a development fund or otherwise, on activities outside of the Interchange West and Lyndale Gateway Tax Increment Financing 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 West and Lyndale Gateway Tax Increment Financing District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the Interchange West and Lyndale Gateway Tax Increment Financing 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 M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the Interchange West and Lyndale Gateway Tax Increment Financing District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 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 M.S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -19 and parking facilities for the site. The allocated administrative expenses of the City or HRA, including the cost of preparation of the development action response plan, may be included in the qualifying costs. ;.. Subsection 2 -29. State Tax.- Increment Financing Aid Pursuant to 273.1399, for tax increment financing districts for which certification was requested after' April.130, 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 AgriculturaLAid- (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured1tax capacity (QCTC) of the tax increment financing district. it; X Puusuanuto M.S., Section 273.1399, Subd. 6, the City or HRA may choose an option to the LGA -HACA penalty The Interchange West and Lyndale Gateway Tax Increment Financing District is exempt from the LGA -HACA reduction if the City or HRA elects to make a qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption in each year, the City or HRA 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 City in any year is limited to two percent of the City's net tax capacity, after which point the City or HRA must make an additional contribution equal to the lesser of (a) 0.25 percent of the City's net tax capacity or (b) 3 percent of tax increment revenues for that year. The amount of the local contribution must be made out of unrestricted money of the City or HRA, such as the general fund, a property tax levy, or a federal or state grant -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 be used for general government purposes. The City elects to make the annual local contribution to the project to exempt itself from the LGA - HACA penalty. The City or HRA will pay for costs of the project described in this Plan, in an amount equal to 5 percent of annual tax increment for the Interchange West and Lyndale Gateway Tax Increment Financing District, subject to the limitations described above, in any year in which such amount exceeds 2 percent of the City's net tax capacity. Such contribution may be in form of either lump sum or annual payments (in addition to tax increment payments) towards costs identified in this Plan or other costs related to that development or redevelopment. The contribution may also be made in the form of public improvements financed by the City or HRA or other unit of government with unrestricted funds. Subsection 2 -30. County Road Costs Pursuant to M.S., Section 469.175, Subd la, the county board may require the City or HRA 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 city has hired traffic consultants to mitigate any traffic impacts on county roads. If the county elects to use increments to improve county roads, it must notify the City or HRA within thirty days of receipt of this Plan. City of Richfield'ax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -20 Subsection 2 -31. Economic Development and Job Creation To the extent applicable, thesCity or HRA agrees to comply with M.S., Section 116J.991, which states that a business receiving state orlocal government assistance for economic development or job growth purposes, including tax incrementfina cirig, must create a net increase in jobs and meet wage level goals in Minnesota within two years of rceiving assistance (See Appendix E). fRicfleld is establishing the Interchange West and Lyndale Gateway Tax Increment Financing i, preserve and enhance the tax base, redevelop substandard areas, and provide employment tie's in the City. The Tax Increment Financing Plan for the Interchange West and Lyndale Gateway ment Financing District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Minnesota 55402 -4100, telephone (651) 697 -8500. City of Richfielffax Increment Financing Plan for the Interchange West and Lyndale Gateway Tax Increment Financing District 2 -21 APPENDIX A PROJECT DESCRIPTION The Interchange West project portion of the TIF District currently consists of 98 parcels of land and adjacent and internal rights= ofway: The Interchange West project is created to facilitate redevelopment of existing buildings in theCity of Richfield. The anticipated use is a 350 room motel, approximately 375,0000 square foot office building;ya 50,000 to 70,000 square feet of retail, 100 unit apartment and 250 town homes The Ly ndale:Gateway project portion of the TIF District currently consists of 37 parcels of land and adjacent anc'interal'rights -of -way. The Lyndale Gateway project is created to facilitate 50,000 square feet of retail space, 15; Y 1 apartments (60 of which will be low to moderate income housing) and 30 town homes in the City of4Richfield. Tax increment revenues will be used to pay for the costs of land acquisition, site improvements, public improvements, public utilities. The City will be using some of the tax increment designated for land acquisition to provide down payment assistance to a variety of prospective home buyers. APPENDIX A -1 APPENDIX B BOUNDARY MAPS/6F THE RICHFIELD REDEVELOPMENT PROJECT AREA AND 1. Tf. HE-INTERCHANGE WEST AND LYNDALE GATEWAY INCREMENT FINANCING DISTRICT r APPENDIX B -1 rn oast v HSgNV.L wS z ONZZ x i o F x x x x c 7 HIM v H1BL 42) MOTB3 JN01 BAY aVO33 QoO f•• ' BAY 8V037 ; HILL Ql_.J H19L N ccH19L r HD = NOl NIWOOIBNOl°JNIW0019 -- II r - H1Sl D Jddl n )CI O D "ikL Hlbt Cu (B H1YL C ODD OC O DOO n H1£L c cQ L O C OO^O OC OC O L1 Hut W L{ Llt3 DOO a 0 H1Lt Li H1DL HIM Q 1On13 0 0r0- -0 000c oo ion13 O` JVOIHoE oL_J I -IoDO O`0VOIHO snewmoo (3 0 000 snewmoo V O DDO II- 0 100 IaVd v U W ONVIHVO t_J ONTWO 3AV ONV1180d 00 0000 0 3AV ONVllaOd o O 0 H;S C7C C"IB O Q C H19 H10 3 I O----- IIC7 118r 0 Hill, C C y,. 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THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT i I> V APPENDIX C -1 Interchange West Address Address PID 7601 Penn Avenue 33- 028 -24 -33 -0037 7609 Penn Avenue 33- 028 -24 -33 -0036 7615 Penn Avenue 33- 028 -24 -33 -0035 7621 Penn Avenue 33- 028 -24 -33 -0034 7627 Penn Avenue 33- 028 -24 -33 -0033 7633 Penn Avenue 33- 028 -24 -33 -0032 7639 Penn Avenue • 33- 028 -24 -33 -0031 7649 Penn Avenue 33- 028 -24 -33 -0012 7600 Oliver Avenue 33- 028 -24 -33 -0021 7604 Oliver Avenue 33- 028 -24 -33 -0022 7610 Oliver Avenue 33- 028 -24 -33 -0023 7614 Oliver Avenue 33- 028 -24 -33 -0024 7620 Oliver Avenue 33- 028 -24 -33 -0025 7624 Oliver Avenue 33- 028 -24 -33 -0026 7628 Oliver Avenue 33- 028 -24 -33 -0027 7634 Oliver Avenue 33- 028 -24 -33 -0028 7638 Oliver Avenue 33- 028 -24 -33 -0029 7644 Oliver Avenue 33- 028 -24 -33 -0030 7601 Oliver Avenue 33- 028 -24 -33 -0064 7609 Oliver Avenue 33- 028 -24 -33 -0063 7615 Oliver Avenue 33 -028 -24 -33 -0089 7621 Oliver Avenue 33- 028 -24 -33 -0088 7627 Oliver Avenue 33- 028 -24 -33 -0087 7633 Oliver Avenue 33- 028 -24 -33 -0062 7639 Oliver Avenue 33- 028 -24 -33 -0061 7645 Oliver Avenue 33- 028 -24 -33 -0060 7600 Newton Avenue 33- 028 -24 -33 -0052 7608 Newton Avenue 33- 028 -24 -33 -0053 7614 Newton Avenue 33- 028 -24 -33 -0054 7620 Newton Avenue 33- 028 -24 -33 -0055 7626 Newton Avenue 33- 028 -24 -33 -0056 7632 Newton Avenue 33- 028 -24 -33 -0057 7638 Newton Avenue 33- 028 -24 -33 -0058 7644 Newton Avenue 33- 028 -24 -33 -0059 7601 Newton Avenue 33- 028 -24 -33 -0078 7605 Newton Avenue 33- 028 -24 -33 -0079 7611 Newton Avenue 33- 028 -24 -33 -0080 7617 Newton Avenue 33- 028 -24 -33 -0081 7623 Newton Avenue 33- 028 -24 -33 -0082 7629 Newton Avenue 33- 028 -24 -33 -0083 7633 Newton Avenue 33- 028 -24 -33 -0084 7639/41 Newton Avenue 33- 028 -24 -33 -0085 7643/45 Newton Avenue 33- 028 -24 -33 -0086 7600 Morgan Avenue 33- 028 -24 -33 -0038 7608 Morgan Avenue 33- 028 -24 -33 -0039 7620 Morgan Avenue 33- 028 -24 -33 -0041 7624 Morgan Avenue 33- 028 -24 -33 -0042 7628 Morgan Avenue 33- 028 -24 -33 -0043 7634 Morgan Avenue 33- 028 -24 -33 -0044 7638/40 Morgan Avenue 33- 028 -24 -33 -0045 7642/44 Morgan Avenue 33- 028 -24 -33 -0046 7601 Morgan Avenue 33- 028 -24 -33 -0090 7609 Morgan Avenue 33- 028 -24 -33 -0091 7615 Morgan Avenue . 33- 028 -24 -33 -0047 7621 Morgan Avenue 33- 028 -24 -33 -0048 7625 Morgan Avenue 33- 028 -24 -33 -0049 7629 Morgan Avenue 33- 028 -24 -33 -0050 7639/41 Morgan Avenue 33- 028 -24 -33 -0051 7645/47 Morgan Avenue 33- 028 -24 -33 -0004 1915 76th Street 33- 028 -24 -33 -0001 7608/10 Logan Avenue 33- 028 -24 -33 -0002 7614/16 Logan Avenue 33- 028 -24 -33 -0015 7620/22 Logan Avenue 33- 028 -24 -33 -0016 7626/28 Logan Avenue 33- 028 -24 -33 -0017 7636/38 Logan Avenue 33- 028 -24 -33 -0019 7644/46 Logan Avenue 33- 028 -24 -33 -0020 7601 Logan Avenue 33- 028 -24 -34 -0006 2015/25 77th Streeet 33- 028 -24 -33 -0008 2101/09/15/21 77th Streeet 33- 028 -24 -33 -0010 7615 Logan Avenue 33- 028 -24 -34 -0005 7629/35 Logan Avenue 33- 028 -24 -34 -0014 7639/45 Logan Avenue 33- 028 -24 -34 -0015 7700 Logan Avenue 33- 028 -24 -33 -0005 7701 Logan Avenue 33- 028 -24 -34 -0007 7708 Logan Avenue 33- 028 -24 -33 -0006 7600 Knox Avenue 33- 028 -24 -34 -0002 7608 Knox Avenue 33- 028 -24 -34 -0003 7626 Knox Avenue 33- 028 -24 -34 -0009 7700 Knox Avenue 33- 028 -24 -34 -0010 7701 Penn Avenue 33- 028 -24 -33 -0013 7745 Penn Avenue 33- 028 -24 -33 -0014 7701 Newton Avenue 33- 028 -24 -33 -0009 2100 78th Street W 33- 028 -24 -33 -0011 2026 78th Street W 33- 028 -24 -33 -0067 2024 78th Street W 33- 028- 24 -33- 0066 &65 2022 78th Street W 33- 028 -24 -33 -0068 2020 78th Street W 33- 028 -24 -33 -0069 2016 78th Street W 33- 028 -24 -33 -0070 2000 78th Street W 133-028-24-33-0093 33- 028 -24 -33 -0007 1920 78th Street W 1900 78th Street W 33- 028 -24 -33 -0013 7701 Morgan Avenue 33- 028 -24 -33 -0094 7705 Morgan Avenue 33- 028 -24 -33 -0095 7713 Morgan Avenue 33- 028 -24 -33 -0077 7725 1 Morgan Avenue 33- 028 -24 -33 -0072 Lyndale Gateway Address PID 7600 Lyndale 33- 028 -24-44 -0036 7608 Lyndale 33- 028 -24-44 -0037 7614 -16 -18 Lyndale 33- 028 -24-44 -0038 7620 -26 Lyndale 33- 028 -24-44 -0039 7628 Lyndale 33- 028 -24-44 -0041 7630 Lyndale 33- 028 -24-44 -0042 7632 Lyndale 33- 028 -24-44 -0040 7634 -36 Lyndale 33- 028 -24-44 -0043 7638 -40 Lyndale 33- 028 -24 -44 -0044 7642 -42a Lyndale 33- 028 -24-44 -0045 7644- 44 -1/2 Lyndale 33- 028 -24-44 -0046 7601 Aldrich 33- 028 -2444 -0056 7609 Aldrich 33- 028 -24-44 -0055 7615 Aldrich 33- 028 -24-44 -0054 7621 Aldrich 33- 028 -24-44 -0053 7627 Aldrich 33- 028 -24-44 -0052 7633 Aldrich 33- 028 -24-44 -0051 7639 Aldrich 33- 028 -24-44 -0050 7601 Lyndale 34- 028 -24 -33 -0078 7609 -11 Lyndale 34- 028 -24 -33 -0077 7613 -27 Lyndale 34- 028 -24 -33 -0084 7629 -33 Lyndale 34- 028 -24 -33 -0074 7645 Lyndale 34- 028 -24 -33 -0073 7600 Garfield 34- 028 -24 -33 -0065 7608 Garfield 34- 028 -24 -33 -0066 7614 Garfield 34- 028 -24 -33 -0067 7620 Garfield 34- 028 -24 -33 -0068 7626 Garfield 34- 028 -24 -33 -0069 7632 Garfield 34- 028 -24 -33 -0070 7638 Garfield 34- 028 -24 -33 -0071 7639 Garfield 34- 028 -24 -33 -0058 7633 Garfield 34- 028 -24 -33 -0059 7627 Garfield 34- 028 -24 -33 -0060 7621 Garfield 34- 028 -24 -33 -0061 7615 Garfield 34- 028 -24 -33 -0062 7609 Garfield 34- 028 -24 -33 -0063 7601 Garfield 34- 028 -24 -33 -0064 APPENDIX D ESTIMATED CASH_ FLOW FOR THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT f APPENDIX D -1 05/05/99 City of Richfield - INTERCHANGE WEST Page 1 BASIC ASSUMPTIONS District: New Redevelopment District Inflation Rate Every 4 years 8.0000% Pay As You Go Rate 7.50 Fiscal Disp. Contribution Ratio EST 24.000% Tax Capacity (Extension) Rate - AREA WIDE RATE 1.620000 EST Tax Capacity (Extension) Rate - CITY RATE 1.500000 1999 Tax Capacity Extension Rate - CITY RATE 1.352900 EST PAY 2001 BASE TAX CAPACITY Development Type BASE BASE MARKET PROPERTY TAX VALUE TYPE CAPACITY Total 504,008 Percent Complete Development Type Sq. Ft. Units PROJECT VALUE INFORMATION Taxes Tax Capacity Per Total Minus S . FIJUnit Taxes Fs. Dis. Total Tax Capacity Tax Rate Market Value Payable 70.00% Motel 245 3,000.00 735,000 412,891 543,277 3.25% 15,522,212 2001 30.00% Motel 105 3,000.00 315,000 176,953 232,833 3.25% 6,652,376 2002 70.00% Office - 1 131,250 7.00 918,750 516.114 679.097 3.25% 19.402,764 2001 30.00% Office -1 56,250 7.00 393,750 221,192 291,041 3.25% 8.315,470 2002 50.00% Office - 2 93,750 7.00 656,250 368,653 485,069 3.25% 13,859.117 2001 50.00% Office - 2 93,750 7.00 656,250 368,653 485.069 3.25% 13,859,117 2002 100.00% Car Dealership 40,575 6.00 243.450 136,760 179,947 3.25% 5,141,337 2001 100.00% Restaurant 8,700 8.50 73,950 41,542 54,660 3.25% 1,561,725 2001 100.00% Apartment 100 2,009.06 200,906 148,500 148,500 2.25% 6,600,000 2001 Based on 66,000 Per Unit 100.00% Retail 12,000 5.50 66,000 37,076 48,784 3.25% 1,393.831 2001 Town fames 125 2,638.16 329,769 243,750 243,750 1010.6% 18,750,000 2001 Town homes 125 2,638.16 329,769 243.750 243,750 1%/1.6% 18,750,000 2002 TOTALS 4,918,844 2,915,831 3.635,778 129,807,950 BUT/ FOR ANALYSIS Current Market Value - Est. 504,008 New Market Value - Est. 129,807,950 Difference 129,303,942 Present Value of Tax Increment 28,175,217 Difference 101,128,725 Value Likely to Occur Without TIF is Less Than: 101,128,725 Rf100- Prepared by Ehlers - Please review all assumptions. PLAN -1.WK4 05105/99 City of Richfield - INTERCHANGE WEST Page 2 R1100- Prepared by Ehlers - Please review all assumptions. PLANA.WK4 TAX INCREMENT CASH FLOW Beginning Period Annual Project Captured Semi - Annual Admin Trust Semi - Annual Local Ending Period Base Tax Tax Tax Gross Tax Payment Fund Net Tax Match Yrs. Mth. Yr. Capacity Capacity Capacity Increment 10.25% 15.00° Increment 5.00 % Yrs. Mth. Yr. 0.0 02 -01 1999 504,008 504,008 0.0 08.01 1999 0.0 08 -01 1999 504,008 504,008 0 0 0 0 0 0 0.0 02.01 2000 0.0 02 -01 2000 504,008 504,008 0 0 0 0 0 0 0.0 08 -01 2000 0.0 08.01 2000 504,008 504,008 0 0 0 0 0 0 0.0 02.01 2001 0.0 02.01 2001 504,008 1,905.284 1,401,276 947,893 97,159) 142,184) 708.550 47,395 0.5 08 -01 2001 0.5 08.01 2001 504,008 1,905,284 1,401,276 947,893 97,159) 142,184) 708.550 47.395 1.0 02.01 2002 1.0 02 -01 2002 504,008 2.915.831 2,411,823 1,631,478 167,226) 244,722) 1,219,530 81,574 115 08.01 2002 1.5 08 -01 2002 504,008 2,915,831 2,411,823 1,631,478 167,226) 244,722) 1,219,530 81,574 2.0 02.01 2003 2.0 02 -01 2003 504,008 2,915,831 2,411,823 1,631,478 167,226) 244,722) 1,219,530 81,574 2.5 08.01 2003 2.5 08 -01 2003 504,008 2,915,831 2,411,823 1,631,478 167,226) 244,722) 1,219,530 81,574 3.0 02.01 2004 3.0 02 -01 2004 504,008 2.915.831 2,411,823 1,631,478 167,226) 244,722) 1,219,530 81,574 3.5 08 -01 2004 3.5 08 -01 2004 504,008 2,915,831 2,411,823 1,631,478 167,226) 244,722) 1,219,530 81,574 4,0 02 -01 2005 4.0 02.01 2005 504.008 3,149,098 2.645,090 1,789,271 183,400) 266,391) 1,337,480 89,464 4,5 08.01 2005 4.5 08 -01 2005 504,008 3,149,098 2.645,090 1,789,271 183,400) 268,391) 1,337,480 89.464 5.0 02.01 2006 5.0 02.01 2006 504,008 3,149,098 2,645,090 1,789,271 183,400) 268,391) 1,337,480 89,464 5.5 08.01 2006 5.5 08 -01 2006 504,008 3.149.098 2,645,090 1,789,271 183,400) 268,391) 1,337,480 69,464 6.0 02 -01 2007 6.0 02 -01 2007 504,008 3.149,098 2,645,090 1,789,271 183,400) 268.391) 1,337,480 89,464 6.5 08.01 2007 6.5 08 -01 2007 504,008 3,149,098 2,645,090 1,789.271 183,400) 268,391) 1,337,480 89.464 7.0 02.01 2008 7.0 02 -01 2008 504,008 3,149.098 2,645,090 1,789,271 183,400) 268,391) 1,337,480 89,464 7.5 08 -01 2008 7.5 08 -01 2008 504,008 3,149,098 2,645,090 1.789,271 183,400) 268,391) 1,337,480 89,464 8.0 02 -01 2009 8.0 02 -01 2009 504,008 3.401,026 2,897,018 1,959,688 200,868) 293,953) 1,464,867 97,984 8.5 08 -01 2009 8.5 08.01 2009 504,008 3,401,026 2,897,018 1,959,688 200,868) 293,953) 1,464,867 97,984 9.0 02.01 2010 9.0 02 -01 2010 504,008 3,401,026 2,897,018 1,959,688 200,868) 293,953) 1,464,867 97,984 9.5 08.01 2010 9.5 08 -01 2010 504,008 3,401,026 2.897,018 1,959,688 200,668) 293,953) 1,464,867 97,984 10.0 02 -01 2011 10.0 02 -01 2011 504,008 3.401,026 2,897,018 1,959,688 200,868) 293.953) 1,464,867 97,984 10.5 08 -01 2011 10.5 08 -01 2011 504,008 3,401,026 2,697,018 1,959,688 200.868) 293,953) 1,464,867 97.984 11.0 02.01 2012 11.0 02 -01 2012 504,008 3,401,026 2,897,018 1,959,688 200,868) 293,953) 1,464,867 97,984 11.5 08 -01 2012 11.5 08 -01 2012 504,008 3,401,026 2.897,018 1,959,688 200,868) 293.953) 1,464,867 97,984 12.0 02 -01 2013 12.0 02.01 2013 504,008 3,673,108 3,169,100 2,143,738 219,733) 321,561) 1,602,444 107,187 12.5 08 -01 2013 12.5 08 -01 2013 504,008 3,673,108 3,169,100 2,143,738 219,733) 321,561) 1,602,444 107,187 13.0 02 -01 2014 13.0 02 -01 2014 504,008 3,673,108 3,169,100 2,143,738 219,733) 321,561) 1,602,444 107,187 13.5 08 -01 2014 13.5 08 -01 2014 504,008 3.673.108 3,169,100 2,143,738 219,733) 321,561) 1,602,444 107,187 14.0 02.01 2015 14.0 02.01 2015 504,008 3,673,108 3,169,100 2,143,738 219.733) 321,561) 1,602,444 107,187 14.5 08 -01 2015 14.5 08 -01 2015 504,008 3,673,108 3,169.100 2,143.738 219,733) 321,561) 1,602,444 107,187 15.0 02 -01 2016 15.0 02 -01 2016 504,008 3,673,108 3,169,100 2,143,738 219,733) 321,561) 1,602,444 107,187 15.5 08 -01 2016 15.5 08 -01 2016 504,008 3,673,108 3,169,100 2,143,738 219,733) 321,561) 1,602,444 107,187 16.0 02 -01 2017• 16.0 02.01 2017 504,008 3,966.957 3,462,949 2.342,512 240,107) 351,377) 1,751,027 117,126 16.5 08 -01 2017 16.5 08.01 2017 504,008 3,966,957 3,462.949 2,342,512 240,107) 351,377) 1,751,027 117.126 17.0 02 -01 2018 17.0 02 -01 2018 504,008 3.966.957 3,462,949 2,342,512 240,107) 351,377) 1,751,027 117,126 17.5 08.01 2018 17.5 08-01 2018 504,008 3.966,957 3,462,949 2,342,512 240,107) 351,377) 1,751,027 117,126 18.0 02 -01 2019 18.0 02.01 2019 504,008 3,966,957 3,462,949 2,342.512 240,107) 351,377) 1,751,027 117,126 18.5 08 -01 2019 18.5 08 -01 2019 504,008 3,966,957 3,462,949 2,342,512 240,107) 351,377) 1,751,027 117,126 19.0 02 -01 2020 19.0 02 -01 2020 504,008 3.966.957 3,462,949 2,342,512 240,107) 351,377) 1,751,027 117,126 19.5 08.01 2020 19.5 08.01 2020 504,008 3,966,957 3,462,949 2,342,512 240,107) 351,377) 1,751,027 117,126 20.0 02 -01 2021 20.0 02.01 2021 504,008 4,264.313 3,780,305 2,557,187 262,112) 383,578) 1,911,498 127,859 20.5 08 -01 2021 20.5 08 -01 2021 504,008 4,284,313 3,780,305 2,557,187 262,112) 383,578) 1,911,498 127,859 21.0 02.01 2022 21.0 02 -01 2022 504,008 4,284,313 3.780.305 2,557,187 262,112) 383,578) 1,911,498 127,859 21.5 08 -01 2022 21.5 08 -01 2022 504,008 4,284,313 3,780,305 2,557,187 262,112) 383,578) 1,911,498 127,859 22.0 02 -01 2023 22.0 02.01 2023 504,008 4,284,313 3,780,305 2,557,187 262,112) 383,578) 1,911,498 127,859 22.5 08 -01 2023 22.5 08 -01 2023 504,008 4,284,313 3,780,305 2.557,167 262,112) 383,578) 1,911,498 127,859 23.0 02.01 2024 23.0 02 -01 2024 504,008 4,284,313 3,780,305 2,557,187 262,112) 383,578) 1,911,498 127,859 23.5 08 -01 2024 23.5 08 -01 2024 504,008 4,284,313 3,780,305 2,557,187 262,112) 383,578) 1,911,498 127,859 24.0 02 -01 2025 24.0 02 -01 2025 504,008 4,627,058 4,123,050 2,789,037 285,876) 418.356) 2,084,805 139,452 24.5 08-01 2025 24.5 08.01 2025 504,008 4,627,058 4,123,050 2,789,037 285,876 418,356 2,084,805 139,452 25.0 02 -01 2026 TOTALS 103,601,892 10,619,194 15,540,284) 77,442,414 5,180,095 PRESENT VALUE 28,175,217 R1100- Prepared by Ehlers - Please review all assumptions. PLANA.WK4 05/05/99 City of Richfield - LYNDALE GATEWAY Page 1 BASIC ASSUMPTIONS BASE TAX CAPACITY Sq. Ft. Units District: New Redevelopment District Total Tax Capacity Tax Rate Inflation Rate Every 4 years 8.0000% BASE Pay As You Go Rate 8.00% 4.36 Fiscal Disp. Contribution Ratio 17.176% 1999 Tax Capacity (Extension) Rate • AREA WIDE RATE 1.620000 EST Tax Capacity (Extension) Rate • CITY RATE 1.500000 1999 Tax Capacity Extension Rate - CITY RATE 1.352900 2001 Phase BASE TAX CAPACITY Sq. Ft. Units PROJECT VALUE INFORMATION Taxes Total Taxes Tax Capacity Per Including Minus Sq. Ft./Unil Fis. Dis. Fis. Dis. Total Tax Capacity Tax Rate Market Value BASE BASE Retail - Hardware 24,000 4.36 MARKET PROPERTY TAX 74,875 2.25% -3.25% 2,350,000 PID VALUE TYPE CAPACITY 15,120 4.37 33- 028.24 - 44.0036 168,000 2.25% -3.25% 3.960 7600 West -Lyn 33. 028.24 - 44.0037 174,000 2.25% -3.25% 4.155 7608 -12 West -Lyn 33. 028.24.44.0038 260.000 2.25% -3.25% 6,950 7614 -18 West -Lyn 33. 028 -24 -44 -0039 245.000 2.25% -3.25% 6,463 7620.26 West -Lyn 33. 028 -24 -44 -0040 109,000 225%x3.25% 2,453 7632 West -Lyn 33. 028.24. 44.0041 89,000 2.25;6.3.25% 2.003 7628 West -Lyn 33- 028.24. 44.0042 110,000 2.25'1.3.25% 2.475 7630 West -Lyn 33- 028 - 24.44.0043 101,000 2.25% 3.25% 2.273 7634.36 West -Lyn 33- 028 -24- 44.0044 92,000 2.25% -3.25% 2,070 7638 -40 West -Lyn 33. 028.24 - 44.0045 120,000 2.250A-3.25% 2,700 7642 West -Lyn 33. 028.24 - 44.0046 118,000 2.251/w3.25% 2,655 7644 West•L Subtotal 1,586.000 38,155 2002 TOTALS 34- 028 -24 -33 -0078 122.000 2.25% 2,745 7601 East -Lyn 34.028.24.33.0077 235.000 225% 5,288 7609 -11 East -Lyn 34.028.24. 33-0073 0 2.25% 0 0 34. 028.24.33.0084 315.000 2.25% 7,088 7615.27 East -Lyn 34- 028.24.33.0074 147,000 2.25% 3,308 7629.33 East-Lyn Subtotal 819,000 18.428 33. 028.24.44.0056 137,000 2.25% -3.25% 3.083 7601 Aldrich 33- 028 -24- 44.0055 94,000 2.25% -3.25% 2,115 7609 Aldrich 33- 028 -24- 44.0054 87,000 2.25% -3.25% 1,958 7615 Aldrich 33-028 - 24.44.0053 85,000 2.25% -3.25% 1,913 7621 Aldrich 33. 028 -24- 44.0052 87,000 2.25% 3.25% 1,958 7627 Aldrich 33. 028 -24- 44.0051 93,000 2.25% -3.25 % 2,093 7633 Aldrich 33- 028 -24- 44.0050 87,000 2.25%-3.25% 1,958 7639 Aldrich Subtotal 670.000 15,075 34. 028.24.33. 0065 92,000 2.25% 2,070 7600 W- Garfield 34 -028.24.33.0066 113,000 2.25% 2.543 7608 W- GaAield 34. 028.24.33. 0067 96,000 2.25% 2,160 7614 W- Garfield 34 -028.24.33.0068 107,000 2.25% 2,408 7620 W- GaAield 34- 028.24.33.0069 102,000 2.25% 2,295 7626 W- Garfield 34. 028 - 24.33.0070 94,000 2.25% 2,115 7632 W- Garfield 34 -028 -24- 33-0071 113,000 2.25% 2,543 7638 W- Garfield Subtotal 717,000 16,133 34 -028- 24 -33- 0058 90,000 1.00 % -1.6% 972 7639 E- Garfield 34. 028 -24 -33 -0059 82,000 1.001/6-11.61% 844 7633 E- Garfield 34 -028 -24- 33-0060 91,000 1.00%1.6% 988 7627 E- Garfield 34. 028.24. 33-0061 89,000 1.00% -1.6% 956 7621 E- Garfield 34-028.24.33. 0062 88.000 1.00% -1.6% 940 7615 E- Garfield 34. 028.24. 3340063 89,000 1.00% 1.6% 956 7609 E- Garfield 34- 028 -24. 33.0064 101,000 1.00% -1.6% 1,148 7601 E- Garfield Subtotal 630,000 6,804 Total 4,422,000 94,594 Phase Development Type Sq. Ft. Units PROJECT VALUE INFORMATION Taxes Total Taxes Tax Capacity Per Including Minus Sq. Ft./Unil Fis. Dis. Fis. Dis. Total Tax Capacity Tax Rate Market Value Payable 1 Retail - Hardware 24,000 4.36 104,733 62,015 74,875 2.25% -3.25% 2,350,000 2002 1 Retail - Drug Store 15,120 4.37 66,092 39,134 47,250 2.25% -3.25% 1,500,000 2002 1 Retail - 6,880 4.35 29,951 17,735 21,413 2.25% 3.25% 705,000 2002 1 Office 14,500 5.33 77,230 45,729 55,213 2.251/,3.25% 1,745,000 2002 1 Office 35,400 5.33 188,835 111,813 135,000 2.2511:3.25% 4,200,000 2002 1 Apts -East Lyn 91 2,009.06 182,824 135,135 135,135 2.25% 6,006,000 2002 1 Apts -East Lyn 60 990.00 59,400 39,600 39,600 1.00% 3,960,000 2002 1 Town homes 30 2,451.45 73,544 54,360 54,360 1.00% -1.6% 4,275,000 2002 TOTALS 782,610 505,520 562,845 24,741,000 I axes on AptS based on Market value of b60uu Per Unit Taxes on Townhouse Based on Market Value of 142,500 Per Unit BUT/ FOR ANALYSIS Current Market Value - Est. 94,594 New Market Value - Est. 24,741,000 Difference 24,646,406 Present Value of Tax Increment 4,339,493 Difference 20,306,913 Value Likely to Occur Without TI is Less Than: 20,306,913 R11M Prepared by Ehlers Inc. - Please review all assumptions. Plan -1.WK4 05/05/99 City of Richfield - LYNDALE GATEWAY Page 2 R1100- Prepared by Ehlers Inc. - Please review all assumptions. Plan -1.WK4 TAX INCREMENT CASH FLOW Beginning Period Annual Project Captured Semi - Annual Admin Trust Fund Semi - Annual Local Ending Period Base Tax Tax Tax Gross Tax Payment Payment Net Tax Match Yrs. Mth. Yr. Capacitm capacity Capacity Increment 10.25% 15.00% Increment 5.00% Yrs. Mth. Yr. 0.0 02 -01 1999 94,594 94,594 08.01 1999 0.0 08.01 1999 94,594 94,594 0 0 0 0 0 0 0.0 02 -01 2000 0.0 02 -01 2000 94,594 94,594 0 0 0 0 0 0 0.0 08 -01 2000 0.0 08 -01 2000 94,594 94,594 0 0 0 0 0 0 0.0 02.01 2001 0.0 02 -01 2001 94,594 94,594 0 0 0 0 0 0 0.0 08.01 2001 0.0 08-01 2001 94,594 94,594 0 0 0 0 0 0 0.0 02.01 2002 0.0 02 -01 2002 94,594 505.520 410,926 277,971 28.492) 41.696) 207.783 13,899 0.5 08.01 2002 0.5 08 -01 2002 94,594 505,520 410,926 277,971 28.492) 41.696) 207,783 13.899 1.0 02.01 2003 1.0 02.01 2003 94,594 505,520 410,926 277,971 28.492) 41,696) 207,783 13,899 1.5 08.01 2003 1.5 08.01 2003 94,594 505,520 410,926 277,971 28,492) 41,696) 207,783 13,899 2.0 02 -01 2004 2.0 02 -01 2004 94,594 505,520 410,926 277,971 28,492) 41,696) 207,783 13,899 2.5 08.01 2004 2.5 08 -01 2004 94,594 505,520 410,926 277,971 28,492) 41.696) 207,783 13,999 3.0 02.01 2005 3.0 02 -01 2005 94,594 505,520 410,926 277,971 28.492) 41,696) 207.783 13,899 3.$ 08.01 2005 3.5 08.01 2005 94,594 505,520 410,926 277,971 28.492) 41,696) 207,763 13.699 4.0 02 -01 2006 4.0 02.01 2006 94,594 545,962 45.1,368 305,328 31.296) 45,799) 228.233 15.266 4.5 08 -01 2006 4.5 08 -01 2006 94,594 545.962 451,368 305.328 31,296) 45,799) 228.233 15,266 5.0 02.01 2007 5.0 02 -01 2007 94,594 545.962 451,368 305.328 31,296) 45,799) 228,233 15,266 5.5 08.01 2007 5.5 08.01 2007 94,594 545,962 451,368 305,328 31,296) 45,799) 228,233 15,266 6.0 02 -01 2008 6.0 02 -01 2008 94,594 545,962 451,368 305.328 31,296) 45.799) 228,233 15,266 6.5 08.01 2008 6.5 08 -01 2008 94,594 545.962 451,368 305,328 31.296) 45,799) 228,233 15.266 7.0 02.01 2009 7.0 02 -01 2009 94,594 545,962 451,368 305,328 31,296) 45,799) 228,233 15.266 7,5 08 -01 2009 7.5 08 -01 2009 94,594 545.962 451,368 305328 31,296) 45,799) 228.233 15,266 8.0 02 -01 2010 8.0 02 -01 2010 94,594 589.639 495.045 334.873 34,325) 50.231) 250.318 16,744 8.5 08 -01 2010 8.5 08.01 2010 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 9.0 02.01 2011 9.0 02.01 2011 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 9.5 08.01 2011 9.5 08.01 2011 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 10.0 02.01 2012 10.0 02 -01 2012 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 10.5 08.01 2012 10.5 08-01 2012 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 11.0 02.01 2013 11.0 02 -01 2013 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 11.5 08.01 2013 11.5 08 -01 2013 94,594 589,639 495,045 334,873 34,325) 50,231) 250,318 16,744 12.0 02.01 2014 12.0 02 -01 2014 94,594 636,810 542,216 366,782 37,595) 55.017) 274,170 18,339 12.5 08.01 2014 12.5 08 -01 2014 94,594 636.810 42,216 366,782 37,595) 55.017) 274,170 18.339 13.0 02 -01 2015 13.0 02 -01 2015 94,594 636,810 42.216 366,782 37,595) 55,017) 274,170 18,339 13.5 08 -01 2015 13.5 08 -01 2015 94,594 636,810 542.216 366,782 37,595) 55.017) 274,170 18,339 14.0 02 -01 2016 14.0 02.01 2016 94,594 636.810 542,216 366,782 37,595) 55,017) 274,170 18,339 14.5 08 -01 2016 14.5 08.01 2016 94,594 636,810 542,216 366,782 37,595) 55,017) 274,170 18,339 15.0 02 -01 2017 15.0 02 -01 2017 94,594 636,810 542,216 366,782 37,595) 55,017) 274,170 18.339 15.5 08-01 2017 15.5 08-01 2017 94,594 636,810 542,216 366,782 37,595) 55,017) 274,170 18,339 16.0 02 -01 2018 16.0 02 -01 2018 94,594 687,755 593,161 401,244 41,127) 60,187) 299,930 20,062 16.5 08 -01 2018 16.5 08 -01 2018 94,594 687,755 593,161 401,244 41,127) 60,187) 299,930 20.062 17.0 02 -01 2019 17.0 02 -01 2019 94,594 687,755 593,161 401,244 41,127) 60,187) 299,930 20,062 17.$ 0"1 2019 17.5 08 -01 2019 94,594 687,755 593.161 401,244 41,127) 60,187) 299,930 20.062 18.0 02 -01 2020 18.0 02 -01 2020 94,594 687,755 593,161 401,244 41,127) 60,187) 299.930 20,062 18.5 0"1 2020 18.5 08 -01 2020 94,594 687,755 93,161 401,244 41,127) 60,187) 299.930 20,062 19.0 02 -01 2021 19.0 02 -01 2021 94,594 687,755 593,161 401,244 41,127) 60,187) 299,930 20,062 19.5 08 -01 2021 19.5 08 -01 2021 94,594 687.755 593,161 401,244 41,127) 60,187) 299,930 20,062 20.0 02 -01 2022 20.0 02.01 2022 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21,923 20.5 08 -01 2022 20.5 08 -01 2022 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21.923 21.0 02 -01 2023 21.0 02 -01 2023 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21.923 21.5 08 -01 2023 21.5 08 -01 2023 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21,923 22.0 02 -01 2024 22.0 02 -01 2024 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21,923 22.5 08.01 2024 22.5 08 -01 2024 94,594 742,775 648,181 438,462 44,942) 65,769) 327.751 21,923 23.0 02.01 2025 23.0 02 -01 2025 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21,923 23.5 08 -01 2025 23.5 08 -01 2025 94,594 742,775 648,181 438,462 44,942) 65,769) 327,751 21,923 24.0 02 -01 2026 24.0 02.01 2026 94,594 602,197 707,603 478,658 49,062) 71,799) 357,797 23,933 24.5 08 -01 2026 24.5 08 -01 2026 94,594 802,197 707,603 478,658 49,062 71,799 357,797 23,933 25.0 02 -01 2027 TOTALS 17,954,600 1,840,347 ) 2.693,190 ) 13,421,064 897,730 PRESENT VALUE 4,339,493 R1100- Prepared by Ehlers Inc. - Please review all assumptions. Plan -1.WK4 MINNESOTA MfNNESPTAsDEPARTMENT APPENDIX E BUSINESS ASSISTANCE FORM OF TRADE AND ECONOMIC DEVELOPMENT) APPENDIX E-1 tANESOT, q Trade & Economic Development February 12, 1999 To all Minnesota state and local government agencies: With unemployment rates.at record low levels.for.many.regions in the state,.the need for state and local economic development agencies to use taxpayer dollars efficiently and effectively is greater than ever. The Department of Trade and Economic Development (DTED) created the Minnesota Business Assistance Form to assist state and local agencies in reporting their use of taxpayer dollars for business assistance and to meet the accountability measures of M.S. 1161991. M.S. 1161991 requires a business receiving state or local government assistance to create a net increase in jobs in Minnesota within two years of receiving the assistance. This two -year period begins when the recipient begins to receive benefits of the assistance, i.e. when project is placed in service. The law also requires the business to meet wage level and job creation goals established by the funding agency. Until the wage and job goals are achieved, each government agency that works with these businesses is mandated to annually report the goals and any progress toward these goals to DTED. If the goals are not achieved, the business must repay the assistance to the governmental agency at the terms negotiated in the assistance agreement. Business assistance" refers to any business grant or loan using state or local dollars in excess of 25,000 or any new business activity within a tax increment district. While not defined in statute, our interpretation is that this would include grants, loans, interest subsidies, tax increment financing (TIF) or any other public monies directly benefitting a business and given for economic development or job growth purposes. Please use the enclosed Minnesota Business Assistance Form to comply with M.S. 1161991. This statute requires that all financial assistance agreements signed since July 1, 1995 should be reported, regardless when the assistance was awarded, unless a form has previously been submitted indicating that the business has met the established wage and job creation goals. Moreover, a new form should be submitted each year until DTED receives a form documenting that the business has achieved the goals. Please mail or fax your completed form(s) to DTED before April 1, 1999. The legislative report will not include any forms not postmarked or faxed by that date. The form does not need to be submitted if assistance has not been provided to a business. regards, 46 Commissioner 500 Metro Square, 121 7th Place East, Saint Paul, Minnesota 55101 -2146 USA 651 - 297 -1291 •800- 657 -3858 • Fax 651- 296 -4772 • TPY/'TDD 800 - 627 -3529 www.dted.state.mmus 1999 Minnesota Business Assistance Form Please return by April 1, 1999) Please complete lines 1 through 16 for all agreements NESop Q 1Yade & - Dewlopme at 1. Funding government agency name 2. Contact name 3. Agency street address 4. City 5. Zip code 6. Phone number (area code) 8. Type of government agency CityCity „_County _Regional State Other (Please indicate) 7. Fax number-(area code) 9. Name of business receiving assistance 10. industry of recipient (SIC code) 11. Type of assistance (e.g. loan, T1F, grant, infrastructure, etc.) 12. Name of T1F district (if applicable) 13. Date of business assistance agreement 14. Date assistance frost provided 15. Date project (building/ machinery/etc.) was placed in service 16. Dollar value of business assistance For assistance agreements signed between July 1, L095 and December 31, 1997, complete lines 17 through 20. For agreements signed during 1998 and future years, please complete lines 21 through 24. 17. Job creation goals for business receiving assistance 18. Average hourly wage level goals for business receiving assistance 19. Actual jobs created since business received assistance 20. Actual average hourly wage paid to employees hired since business received assistance Goals of business receiving assistance: (Please indicate Actual performance since project placed in service: (Please number of employees at each wage level and indicate the indicate number of employees at each wage level and indicate corresponding benefit level.) the corresponding benefit level.) 21. Job Creation Hourly Wage 22. Hourly Value 23. Job Creation Hourly Wage 24. Hourly Value Level of Voluntary Level of Voluntary Full-time Part-time (excl. benefits) Benefits ($) Full-time Part -time (excl. benefits) Benefits ($) less than $7.00 less than $7.00 7.00 to $7.99 7.00 to $7.99 8.00 to $9.99 8.00 to $9.99 10.00 to $11.99 10.00 to $11.99 12.00 and higher 12.00 and higher If necessary, please attach additional documentation. If necessary, please attach additional documentation. Please complete lines 25 through 27 for all agreements. 25. Last date actual wage and job creation levels documented 26. Date this Minnesota Business Assistance Form completed 27. Have all wage and job goals been achieved? U Yes - do not submit future forms for this project No - please submit the 2000 Minnesota Business Assistance Form. This form replaces all previous forms. Please complete one form for each business assistance agreement your agency signed between July 1, 1995 and December 31,1998 which provided $25,000 or more in public funds or used tax increment financing. A form should be submitted annually for each assistance agreement until a submitted form indicates that all wage and job creation goals have been achieved Do not submit this form if your agency has not agreed to provide assistance to a business since July 1, 1995. over) t'lt1NES019 Trade & , Econonuc Development Please send completed form annually by April 1, 1999 to: Minnesota Business Assistance Form — AEO Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 East 7th Place St. Paul, Minnesota 55101 or fax report to: 651) 215 -3841 For information, call: 651) 297 -2335 or 1-800-657-3858 Minnesota Statutes 116J.991: A business that receives state or local government assistance for economic development or job growth purposes must create a net increase in jobs in Minnesota within two years of receiving the assistance. The government agency providing the assistance must establish wage level and job creation goals to be met by the business receiving the assistance. A business thatfails to meet the goals must repay the assistance to the government agency. Each government agency must report the wage and job goals and the results for each project in achieving those goals to the department of trade and economic development. The department shall compile and publish the results of the reports for the previous calendar year by June I of each year. The reports of the agencies to the department and the compilation report of the department 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. APPENDIX F REDEVELOPMENT,QIJALIFICATIONS FOR THE INTERCHANGE WEST AND LYNDALE f' "GATEWAY TAX INCREMENT FINANCING DISTRICT t 1 APPENDIX F -1 TIF Property Evaluations for Richfield, Minnesota Conducted by YNR Partners, 3989 Central Ave NE, Minneapolis, MN 55421, (612)788.5319 Interchage West District 5- Nov -98 Current percentage of properties meeting site coverage requirements 95% Current percentage of qualifying properties (based on TIF requirements) 91% Site Coverage Coverage Code Total of Sub- PID Code Site Area (s.f.) Coverage (s.f.) Quality FCI" Buildings standard FCI Survey 9851.001-0001 12314 1302 11% 0 20% 1 1 42% Exterior evaluation 9851.001-0002 8164 1897 23% 8164 21% 1 1 28% Interior wl owner permission 9851.001-0003 13534 3582 26% 13534 17% 1 1 39% Exterior evaluation 9851.001-0004 11000 7500 68% 11000 18% 1 1 n/a Interior wl owner pemtission 9851.001-0093 7425 1114 15% 7425 0 0 Na.Exteriorevaluation 9851.001-0005 70000 24000 34% 70000 3% 1 0 Na Interior w/ owner permission 9851.001-0(106 40000 27060 68% 40000 30% 2 2 36% Interior w/ owner permission 9851.001-0007 7965 1195 15% 7965 0 0 n/a Exterior evaluation 9851.001-0008 37400 23860 64% 37400 35% 4 4 44% Exterior evaluation 9851.001-0009 95000 44000 46% 95000 0% 1 0 Na Interior on informal basis 9851.001-0010 10790 1216 11% 0 20% 1 1 42% Exterior evaluation 9851.001-0011 200000 36000 18% 200000 0% 0 0 n/a Interior on informal basis 9851.0010012 34000 4000 12% 0 0% 1 0 n/a Interior on informal basis 9851.001-0013 9823 3472 35% 9823 18% 1 1 40% Exterior evaluation 9851.001-0014 9811 3408 35% 9811 18% 1 1 40% Exterior evaluation 9851.001-0015 9812 4424 45% 9812 22% 1 1 37% Exterior evaluation 9851.001-0016 9813 3608 37% 9813 22% 1 1 38% Interior w/ owner permission 9851.001-0017 9814 4616 47% 9814 28% 1 1 40% Exterior evaluation 9851.001-0018 9815 3441 35% 9815 32% 1 1 41% Exterior evaluation 9851.001-0019 7428 2505 34% 7428 23% 1 1 40% Interior w/ owner permission 9851.001-0020 7429 2499 34% 7429 19% 1 1 40% Exterior evaluation 9851.001-0021 7429 2130 29% 7429 18% 1 1 41% Exteriorevaluation 9851.001-0022 7430 2094 28% 7430 19% 1 1 40% Exterior evaluation 9851.001-0023 7430 2093 28% 7430 20% 1 1 41% Exterior evaluation 9851.001-0024 7431 2064 28% 7431 18% 1 1 41% Interior w/ owner permission 9851.001-0025 7423 2832 38% 7423 16% 1 1 38% Exterior evaluation 9851.001-0026 7432 1979 27% 7432 18% 1 1 38% Interior w/ owner pemussion 9851.001-0027 7433 2458 33% 7433 17% 1 1 41% Exterior evaluation 9851.001-0028 6909 1782 26% 6909 18% 1 1 40% Exterior evaluation 9851.001. 0029 9043 3865 43% 9043 21% 1 1 36% Interior wl owner pemtission 9851.001-0030 9043 2878 32% 9043 15% 1 1 40% Exterior evaluation 9851.001. 0031 9042 3272 36% 9042 17% 1 1 37% Exterior evaluation 9851.001-0032 9041 3298 36% 9041 19% 1 1 39% Exterior evaluation 9851.001-0033 9040 2255 25% 9040 18% 1 1 41% Exterior evaluation 9851.001-0034 9035 0 0% 0 0 0 0% Exterior evaluation 9851.001-0035 9025 3885 43% 9025 25% 1 1 39% Interior w/ owner permission 9851.001-0036 9596 2246 23% 9596 21% 1 1 37% Exterior evaluation 9851.001-0037 8296 2479 30% 8296 21% 1 1 37% Exterior evaluation 9851.001-0036 8296 1754 21% 8296 20% 1 1 40% Exterior evaluation 9851.001-0039 8301 3377 41% 8301 17% 1 1 25% Interior wl owner permission 9851.001.0040 8296 2478 30% 8296 18% 1 1 40% Exterior evaluation 9851.001-0041 8296 2780 34% 8296 21% 1 1 40% Exterior evaluation 9851.001-0042 8296 1782 21% 8296 18% 1 1 37% Exterior evaluation 9851.001-0043 10035 4028 40% 10035 19% 1 1 38% Exterior evaluation 9851.001-0044 10035 3214 32% 10035 21% 1 1 42% Exterior evaluation 9851.001-0045 8303 3755 45% 8303 17% 1 1 39% Interior w/ owner permission 9851.001.0046 8697 2676 31% 8697 24% 1 1 37% Exterior evaluation 9651.001-0047 8697 2592 30% 8697 17% 1 1 37% Exterior evaluation 9851.001-0048 8702 2070 24% 8702 24% 1 1 41% Exterior evaluation 9851.001.0049 10035 3616 36% 10035 15% 1 1 40% Exterior evaluation 9851.001-0050 10035 1344 13% 0 22% 1 1 41% Exterior evaluation 9851.001-0051 10036 2662 27% 10036 16% 1 1 42% Exterior evaluation 9851.001 -0052 10037 2266 23% 10037 16% 1 1 40% Exterior evaluation 9851.001-0053 10038 1946 19% 10038 19% 1 1 38% Exterior evaluation 9851.001-0054 10039 2099 21% 10039 24% 1 1 42% Exterior evaluation 9851.001-0055 10040 2015 20% 10040 16% 1 1 39% Exterior evaluation 9851.001-0056 10040 2243 22% 10040 21% 1 1 39% Exterior evaluation 9851.001-0057 9179 2218 24% 9179 17% 1 1 42% Interior w/ owner permission 9851.001-0058 9202 2341 25% 9202 20% 1 1 40% Exterior evaluation 9851.001-0059 10040 1912 19% 10040 24% 1 1 43% Interior w/ owner permission 9851.0010060 10040 3058 30% 10040 18% 1 1 41% Exterior evaluation 9851.001-0061 10037 2140 21% 10037 21% 1 1 39% Exterior evaluation Interchange_West_Summary Page 1 9851.001-0062 10035 1947 19% 10035 21% 1 1 40% Exterior evaluation 9851.001-0063 3536 530 15% 3536 0 0 Na Exterior evaluation 9851.001-0064 2160 324 15% 2160 0 0 n/a Exterior evaluation 9851 .001 -M5 5760 864 15% 5760 0 0 n/a Exterior evaluation 9851 .001 -M6 4320 648 15% 4320 0 0 Na Exterior evaluation 9851.001-0067 4140 621 15% 4140 0 0 n/a Exterior evaluation 9851.0014)068 4968 745 15% 4968 0 0 Na Exterior evaluation 9851.001-0069 20245 3037 15% 20245 0% 0 0 n/a Exterior evaluation 9851.001-0070 20000 14000 70% 20000 50% 1 1 n/a Exterior evaluation 9851.001. 0071 8481 2062 24% 8481 21% 1 1 42% Exterior evaluation 9851.001-0072 8479 1683 20% 8479 19% 1 1 36% Exterior evaluation 9851.001. 0073 8480 3224 38% 8480 18% 1 1 39% Exterior evaluation 9851.001-0074 8480 2270 27% 8480 16% 1 1 40% Exterior evaluation 9851.001.0075 8481 4179 49% 8481 18% 1 1 41% Interior wl owner permssion 9851.001-0076 8481 2214 26% 8481 13% 1 0 41% Exterior evaluation 9851.001. 0077 8481 1957 23% 8481 16% 1 1 38% Exterior evaluation 9851.001-007B 10040 2682 27% 10040 19% 1 1 41% Exterior evaluation 9851.001-0079 10041 2526 25% 10041 14% 1 0 40% Exterior evaluation 9851.001-0080 10039 2550 25% 10039 14% 1 0 40% Interior w/ owner pernission 9851.001.0081 10038 2671 27% 10038 14% 1 0 33% Interior w/ owner permission 9851.001-0082 10037 2131 21% 10037 19% 1 1 41% Exterior evaluation 9851.001-0083 10035 2299 23% 10035 22% 1 1 35% Exterior evaluation 9851.001-0084 10988 2723 25% 10988 25% 1 1 40% Exterior evaluation 9851.001-0085 28700 4305 15% 28700 0 0 n/a Exterior evaluation 9851.001-0086 3100 2000 65% 3100 54% 1 1 n/a Interior wl owner permission 9851.001-0087 7000 3000 43% 7000 29% 1 1 n/a Interior w/ ownerpernissan 9851.001-0088 12000 4000 33% 12000 15% 1 1 n/a Interior w/ owner pernission 9851.001-0089 8000 1900 24% 8000 73% 1 1 n/a Exterior evaluation 9851.001-0091 43000 7000 16% 43000 29% 1 1 n/a Interior w/ owner pernission 9851.001-0092 19100 16107 84% 19100 31% 1 1 43% Exterior evaluation 98$1.001 -0094 13800 2070 15% 13600 15% 1 1 n1a Exterior evaluation 98511001-0095 42000 17000 40% 42000 20% 2 2 n/a Interior wlpennisslExterior 9851.001-0096 1800 270 15% 1800 0 0 n/a Exterior evaluation 9851.001-0097 207776 207776 100% 207776 13% 1 0 n/a Exterior evaluation 9851.001-0098 14960 2244 15% 14960 0 0 n/a Exterior evaluation 9851.001-0099 10000 6000 60% 10000 29% 2 2 n/a Interiorw / owner permission Totals 1603148 1526974 90 82 Percentages 95% 91% Represents information provided by Tom Goodoien, all others by YHR Partners Code FCI is a percentage refe.ring to jhe total code deficiencies of a property / estimated replacement value report prepared by: Notes YHR Partners Facilities Group 1) No estimate of code deficiencies provided 3989 Central Ave NE Ste 595 3) Narrative code deficiency calculation does not match summary id as *Substandard' 5) Lot size provided by YHR for site coverage calculation purposes PAQ us Minneapolis, MN 55421 7) Code deficiencies total at least 15% of building replacement cost. ph: (612) 7885319 fx: (612) 7885324 email jason @yhr.com Interchange_West_Summary Page 2 Planning Commission Letter May 25, 1999 Agenda Section: New Business Item #: 2 Letter #: 20 GENERAL INFORMATION Type of Request: Consideration of a resolution finding that the acquisition and sale of 6537 14`x' Avenue is consistent with the Richfield Comprehensive Plan. Zoning: R (single family residential) and C -2 (general commercial) Existing .Land Use: Single family residential Proposed Land Use: Single family residential Comp. Plan: R -SFH (high density single family residential) References: Chapter 462 of the Minnesota State Statutes requires that whenever any public agency buys or sells property within the City, the Planning Commission must review the proposed use of the site for consistency with the City's Comprehensive Plan. HRA: Planning Commission approval would facilitate the acquisition /disposition of this property by the HRA in a timely manner. ANALYSIS Proposal: For approximately 20 years, the Housing and Redevelopment Authority and Hennepin Technical College have developed new housing for moderate income families under the Voluntary Acquisition Program. The subject property is a small one story, one bedroom house with limited life expectancy. The owner has moved and the property is now vacant. Upon authorization, the City would enter into a purchase agreement with the owner to acquire the property using federal CDBG funds. The City would then sell the property to the HRA. It is anticipated that the City could acquire the property by the end of June or early July, 1999 and sale of the property to the HRA could occur by August 6, 1999. Construction would begin when HTC classes begin in August. In order to utilize federal CDBG funding for acquisition, HUD rules require that the City purchase the property and subsequently transfer it to the HRA to re -sell at the appropriate time. ACTION TO BE TAKEN Recommendation: Adopt the attached resolution finding that the proposed acquisition/disposition and use of the subject property is in conformance with the Comprehensive Plan. Basis: 1. The proposed single family residential re -use is consistent with the Richfield Comprehensive Plan which allows for high density single family residential use in this area. 2. The property is zoned R and C -2, and the Zoning Ordinance allows a property with dual zoning to apply the provisions of either district. 3. The property is substandard and qualifies for acquisition. The property owner is interested in selling the property through the Voluntary Acquisition Program. 4. Funds have been budgeted for acquisition, clearance, and maintenance from 1998 federal CDBG funds. The CDBG funds must be utilized for these purposes and the site must be redeveloped to provide a new home for a moderate income, first -time buying family. 5. Staff is finalizing the preliminary work, which would commit this site to an HTC construction project in 1999. 6. HUD rules require a process by which the City acquires the property and transfers the property to the HRA. A finding of consistency with the Comprehensive Plan is required for the acquisition and disposition of property by the City. Alternative: Reject the attached resolution, finding that the proposed use of the subject property does not conform to the Comprehensive Plan. RESOLUTION NO. RESOLUTION OF THE RICHFIELD PLANNING COMMISSION FINDING THAT THE ACQUISITION AND DISPOSITION OF PROPERTY IS IN CONFORMANCE WITH THE COMPREHENSIVE PLAN WHEREAS, the Planning Commission has reviewed the Comprehensive Plan regarding the acquisition and disposition of property located at 6537 14`h Avenue South, legally described as follows: Lot 17, Block 4, Nokomis Gardens Rearrangement of Blocks 1 -5, Girard Parkview, Hennepin County, Minnesota WHEREAS, the Planning Commission has found that the acquisition and disposition of such property for single family residential purposes would be consistent with the City's Comprehensive Plan. NOW, THEREFORE BE IT RESOLVED, that the Planning Commission finds that the acquisition and disposition of the above described property, for single family residential use, is in conformance with the City's Comprehensive Plan. Adopted this 25th day of May, 1999 by the Planning Commission of the City of Richfield, Minnesota. CITY OF RICHFIELD, MINNESOTA Brenda Bjorklund, Chairperson ATTEST: Terry Ahlstrom, Secretary LLli