HomeMy WebLinkAbout2013/05/13 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
MAY 13, 2013
(Mayor Jacobs Out)
6:00 p.m. CITY COUNCIL STUDY SESSION – Council Chambers
Discussion Items
1. 30 min. Environment & Sustainability Commission: Sustainable SLP Applicant Review
2. 5 min. Future Study Session Agenda Planning – May 28, 2013
3. 15 min. Petition for Street Lights – Joppa Avenue
4. 45 min. Community Center Planning Check-in
5. 45 min. Annual TIF Management Report
6. 60 min. SWLRT Update
9:20 p.m. Communications/Meeting Check-In (Verbal)
Written Reports
7. Refunding of 2007A and 2008A Utility Revenue Bonds
8. Knollwood Area Stormwater Plan
Auxiliary aids for individuals with disabilities are available upon request.
To make arrangements, please call the Administration Department at
952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting.
Meeting: Study Session
Meeting Date: May 13, 2013
Discussion Item: 1
EXECUTIVE SUMMARY
TITLE: Environment and Sustainability Commission: Sustainable SLP Applicant Review
RECOMMENDED ACTION: No formal action required. The purpose of this discussion is to
allow the Council to review all of the applications received for this Commission and provide
direction on the interview process.
POLICY CONSIDERATION: How does Council wish to proceed with interviews?
SUMMARY: On April 1, 2013 , Council approved Ordinance No. 2438-13, establishing the
Environment and Sustainability Commission: Sustainable SLP. This Commission will be
advisory to the Council and will consist of eight regular members, two business members, one
residential tenant member, and two youth members.
A total of 21 applications were received in the City Clerk’s office. These applications, along with
an applicant information chart and Ward distribution map, were forwarded to Council on May 2,
2013, for their review.
The purpose of the meeting is to have Council determine the screening and interview process to
fill the commission.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Chart of Applicants
Ward Distribution Map
Ordinance No. 2438-13
Prepared by: Nancy Stroth, City Clerk
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
ENVIRONMENT AND SUSTAINABILITY COMMISSION: SUSTAINABLE SLP
APPLICANT INFORMATION (April 26, 2013 application deadline - May 6, 2013 Applications to Council for review)
Advisory Commission to the City Council dedicated to issues related to the environment and sustainability in St. Louis Park.
The 13 member commission will include:
8 regular members - 2 business members - 1 residential tenant member - 2 youth members
Last
Name
First
Name Address Ward
1
Ward
2
Ward
3
Ward
4
Regular
Member
Business
Member
Tenant
Member
Youth
Member
Interview
Date Time
1. Anderson Chris 7610 Edgebrook Dr
2. Brausen Tim 8301 Virginia Circle
3. Colletti Melissa 2608 Florida Ave
4. Eilers Mark 2201 France Ave
5. Fields Robert 1431 Hillsboro Ave
6. Gips Terry 9000 28th St W
7. Harris Rachel 2821 Texas Ave
8. Hillstrom Tom 3825 Glenhurst Ave
9. Hindin Mike 7708 13 ½ St W
10. Johnson Debbie 4235 Meadowbrook
Blvd
11. Johnson Natalie 3339 Brunswick Ave S
12. Karius Mary 3440 Sunset Ridge Rd
13. Kuskie Jon 1660 Princeton Ave
14. LaLonde Donovan 2733 Vernon Ave
15. Larson
O’Neil Cindy 4321 Coolidge Ave
16. McGarvey Renee 2909 Raleigh Ave
Study Session Meeting of May 13, 2013 (Item No. 1)
Title: Environment and Sustainability Commission: Sustainable SLP Applicant Review Page 2
Last
Name
First
Name Address Ward
1
Ward
2
Ward
3
Ward
4
Regular
Member
Business
Member
Tenant
Member
Youth
Member
Interview
Date Time
17. Moore Judith 1430 Independence
Ave
18. Parsons Steve 3845 Inglewood Ave
19. Rose Nancy 3402 Huntington Ave
20. Voigt Judy 1603 Utah Dr S
21. Ziegle Paul 3932 Lynn Ave
Study Session Meeting of May 13, 2013 (Item No. 1)
Title: Environment and Sustainability Commission: Sustainable SLP Applicant Review Page 3
Study Session Meeting of May 13, 2013 (Item No. 1) Title: Environment and Sustainability Commission: Sustainable SLP Applicant ReviewPage 4
ORDINANCE NO. 2438 -13
AN ORDINANCE AMENDING THE ST. LOUIS PARK
CODE OF ORDINANCES CHAPTER 2 ESTABLISHING
THE ENVIRONMENT AND SUSTAINABILITY COMMISSION
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
SECTION 1. That Sections 2-325 to 2-349 of the Code of Ordinances, City of St. Louis
Park, Minnesota, are hereby amended to read as follows:
Secs. 2-325--2-330. Reserved.
Division 8. Environment and Sustainability Commission: Sustainable SLP
Sec. 2-331. Purpose.
The purpose of the Environment and Sustainability Commission: Sustainable SLP shall
be to:
(a) Provide recommendations to advance city goals, policies, and programs.
(b) Provide advice and assistance to staff and council through collaboration.
(c) Provide leadership in engaging the community, encouraging relationships and
partnerships with neighborhoods, special interest groups, religious institutions,
business leaders, and other commissions.
(d) Serve as a conduit for environmental and sustainable information, topics, and
direction to and from residents and the public.
Sec. 2-332. Membership; terms.
(a) Function; composition. T he Environment and Sustainability Commission:
Sustainable SLP shall be an advisory commission to the city council. It shall consist of eight
regular members, two business members, one residential tenant member, and two youth
members, all appointed as set forth in this section.
(b) Regular members. The city council shall appoint three regular members of the
commission for terms to expire on December 31, 2013, t hree regular members for terms to
expire on December 31, 2014, and two regular members for terms to expire on December 31,
2015. All subsequent appointments shall be for three-year terms that shall expire on December
31 of the third year of such term and until a successor is duly appointed and qualified. The city
council should ensure representation from each city ward, as outlined in Chapter 10 of this code.
In the event of a vacancy, the city council shall appoint a person to complete the unexpired term.
A member of the commission may be removed with or without cause by the city council.
(c) Business members. Two voting business members who shall reside in the city and
own or operate a business in the city may be appointed by the city council and serve a term of
three years.
Study Session Meeting of May 13, 2013 (Item No. 1)
Title: Environment and Sustainability Commission: Sustainable SLP Applicant Review Page 5
(d) Residential tenant member. One voting residential tenant member who shall, and
for at least 365 calendar days prior to appointment, reside in the city and meet the definition of a
tenant as contained in Chapter 1 of this code as it applies to the member’s residence may be
appointed by the city council and serve a term of three years.
(e) Youth members. Two voting youth members who shall reside in the city and be a
high school student may be appointed by the city council and serve a term of one year.
(f) Qualifications. R egular, business, and residential tenant members of the
Environment and Sustainability Commission: Sustainable SLP shall be qualified voters and
residents of the city. A vacancy shall deem to exist if a member ceases to meet the residency
requirements. All members of the commission shall be appointed from persons who have
demonstrated an interest in the commission by submission of appropriate city forms and exhibit
high energy, leadership, and a commitment to the environment and sustainability.
Sec. 2-333. Organization.
(a) A staff liaison to the Environment and Sustainability Commission: Sustainable SLP
shall be appointed by the city manager and shall be subject to the administrative rules and
regulations of the city.
(b) The commission shall elect its own chair and vice-chair. Subject to such limitations
as may be imposed by the city council at any time, the commission shall provide its own rules
and procedure, determine the date and time of meetings and, upon proper notice, shall call public
hearings when necessary and desirable and in accordance with all requirements of local and state
laws. The bylaws of the commission and amendments shall be submitted to the city council upon
their adoption. Such laws and any amendments shall be deemed to be approved by the city
council unless the city council takes action to modify such bylaws or amendments with 30 days
after submission. No member of the commission shall consider or vote upon any question in
which the member is directly or indirectly interested.
(c) The commission shall include any number of working groups focused on identified
special topics or projects, and be led by at least one commissioner.
(d) The commission shall keep proper records of its proceedings, and such records shall
be maintained by the staff liaison or the liaison’s designees.
Sec. 2-334. Expenses of members.
The members of the Environment and Sustainability Commission: Sustainable SLP shall
serve without pay but may be reimbursed for actual expenses to the extent that funds therefor are
provided in the annual city budget adopted by the city council. The commission shall properly
account for its receipts and expenditures of monies in accordance with established city
procedures.
Sec. 2-335. Powers and duties.
(a) The Environment and Sustainability Commission: Sustainable SLP shall have the
following powers and duties to:
Study Session Meeting of May 13, 2013 (Item No. 1)
Title: Environment and Sustainability Commission: Sustainable SLP Applicant Review Page 6
(1) Advise the city council with respect to environment and sustainability issues arising
out of or in connection with the plans or operations of any city department or
agency and recommend the adoption of such specific policies or actions as may be
needed to enhance the city’s environmental stewardship.
(2) Elicit community feedback and direction, including direct engagement, social
media, annual events and fairs, etc.
(3) Reach out to the full community as well as to special populations with
communication and educational efforts related to the environment and
sustainability.
(4) Establish work groups to focus on specific areas of interest, special projects, and
ongoing concerns. Work group representation should be broadened to emphasize
greater diversity, inclusiveness, and specific issue expertise with non-commission
members from the general community.
(5) Submit to the city council by April 1 of each year an annual report of the activities
of the commission during the previous year.
(b) The commission shall have such additional powers and duties as the city council
shall from time to time determine.
Sec. 2-336--2-349. Reserved.
SECTION 2. This Ordinance shall take effect fifteen days after its publication.
First Reading March 18, 2013
Second Reading April 1, 2013
Date of Publication April 11, 2013
Date Ordinance takes effect April 26, 2013
Reviewed for Administration: Adopted by the City Council April 1, 2013
City Manager Mayor
Attest: Approved as to Form and Execution:
City Clerk City Attorney
Study Session Meeting of May 13, 2013 (Item No. 1)
Title: Environment and Sustainability Commission: Sustainable SLP Applicant Review Page 7
Meeting: Study Session
Meeting Date: May 13, 2013
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Future Study Session Agenda Planning – May 28, 2013
RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for
the regularly scheduled Study Session on May 28, 2013.
POLICY CONSIDERATION: Does the Council agree with the agenda as proposed?
SUMMARY: At each study session approximately five minutes are set aside to discuss the next
study session agenda. For this purpose, attached please find the proposed discussion items for
the regularly scheduled Study Session on May 28, 2013.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Future Study Session Agenda Planning – May 28, 2013
Prepared by: Debbie Fischer, Office Assistant
Approved by: Tom Harmening, City Manager
Study Session Meeting of May 13, 2013 (Item No. 2) Page 2
Title: Future Study Session Agenda Planning – May 28, 2013
Study Session, (Tues.) May 28, 2013 – 6:30 p.m.
Tentative Discussion Items
1. Future Study Session Agenda Planning – Administrative Services (5 minutes)
2. Sidewalk & Trail Plan Update – Engineering (60 minutes)
Update Council on input received during the latest public involvement process and discuss
next steps associated with adoption of the proposed plan.
3. SWLRT Update – Community Development (60 minutes)
Current update and continued discussion of the Southwest Light Rail Transit Project.
4. Knollwood Stormwater Plan – Community Development (30 minutes)
Discussion of the Knollwood area stormwater plan with Minnehaha Creek Watershed
District.
Communications/Meeting Check-In – Administrative Services (5 minutes)
Time for communications between staff and Council will be set aside on every study session
agenda for the purposes of information sharing.
Reports
5. Complete Streets Resolution
End of Meeting: 9:10 p.m.
Meeting: Study Session
Meeting Date: May 13, 2013
Discussion Item: 3
EXECUTIVE SUMMARY
TITLE: Petition for Street Lights – Joppa Avenue
RECOMMENDED ACTION: No formal action required at this time. Staff desires direction
on the policy question noted below.
POLICY CONSIDERATION: Does the City Council wish to deviate from the City’s past
policy and practice regarding street light installation and direct staff to install two mid-block
street lights on Joppa Ave between Minnetonka Blvd and 28th St?
SUMMARY: Attached is a petition received from homeowners in the 2800 block of Joppa Ave.
along with religious institutions in the area asking that the City install two mid-block street lights
along Joppa Ave. Given the unique mix of land uses in the area and the resulting traffic and
pedestrian conflicts that come with it, the City is also requested to pay for the cost of the
installation and maintenance of the two street lights. The City’s policy and past practice is to
provide street lights at City expense at all street corners/intersections. To the extent a
homeowner(s) desires a street light mid-block along a street or alley, the City will install the
street light at the resident’s expense, including on-going electrical charges. The cost to install a
street light is approximately $1,500/pole plus possible trenching and wiring costs. The monthly
electrical charges are approximately $10/month per pole. Note that if an existing pole(s) on
Joppa Ave. can be used to hang a street light, the pole cost would be eliminated. Staff has
reviewed this situation and feels the request made of the City has merit. The mix of land uses in
this area are unique and can be differentiated from other requests the City might receive in the
future.
Due to significant pedestrian traffic in the area the petition also requests the installation in 2013
of a two block segment of sidewalk on the west side of Joppa Ave. Note that the City’s CIP
provides for the installation of this sidewalk in 2014. Given the significant amount of planned
2013 capital improvements being undertaken this construction season, staff cannot commit to
getting the sidewalk installed this year but will do its best to try to accommodate the request.
FINANCIAL OR BUDGET CONSIDERATION: The cost to install the street lights (if any)
would be paid from one of the City’s capital funds. The electrical charges and on-going
maintenance would be paid from the City’s General Fund. The cost to install the sidewalk would
be paid from the City’s sidewalk and trail capital fund.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Petition
Joppa Avenue Aerial Map
Prepared by: Tom Harmening, City Manager
Study Session Meeting of May 13, 2013 (Item No. 3)
Title: Petition for Street Lights – Joppa Avenue Page 2
Study Session Meeting of May 13, 2013 (Item No. 3)
Title: Petition for Street Lights – Joppa Avenue Page 3
Study Session Meeting of May 13, 2013 (Item No. 3)
Title: Petition for Street Lights – Joppa Avenue Page 4
Study Session Meeting of May 13, 2013 (Item No. 3)
Title: Petition for Street Lights – Joppa Avenue Page 5
Study Session Meeting of May 13, 2013 (Item No. 3)
Title: Petition for Street Lights – Joppa Avenue Page 6
Joppa Avenue Aerial Map
Joppa Avenue Study Session Meeting of May 13, 2013 (Item No. 3)
Title: Petition for Street Lights – Joppa Avenue Page 7
Meeting: Study Session
Meeting Date: May 13, 2013
Discussion Item: 4
EXECUTIVE SUMMARY
TITLE: Community Center Planning Check-in
RECOMMENDED ACTION: None at this time. Staff desires Council feedback on the status
of the planning for this project.
POLICY CONSIDERATION: Is the program planning process for the Community Center
consistent with the desires of the City Council?
SUMMARY: After the City Council accepted the Task Force report, staff solicited proposals
and hired a consultant to assist with further assessment of the program content, the undertaking
of a detailed site(s) analysis, and the task of estimating expected capital and operating costs.
While the Task Force report listed the program content and related space needs, there was no
analysis of actual space requirements for all components or for the “back of house” items that go
along with each program/facility (mechanical systems, locker rooms, bathrooms, hallway space
etc.).
Hammel, Green and Abrahamson, Inc. (HGA) was selected as the consultant to assist in the
further analysis of a possible community center. They have experience designing and building
community centers around the metro area as well as in other states.
FINANCIAL OR BUDGET CONSIDERATION: The cost of this phase of planning has been
budgeted in the Parks and Recreation Operating Budget as well as the Park Improvement Fund.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Prepared by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Study Session Meeting of May 13, 2013 (Item No. 4) Page 2
Title: Community Center Planning Check-in
DISCUSSION
BACKGROUND: Hammel, Green and Abrahamson, Inc. (HGA) was selected as the consultant
to assist in the further assessment of a community center. They have experience designing and
building community centers around the metro area as well as other states.
Staff is working with HGA on further assessment of the program content, the undertaking of a
detailed site(s) analysis, and the task of estimating excepted capital and operating costs. While
the Task Force report listed the program content and related space needs, there was no analysis
of actual space requirements for all components or for the “back of house” items that go along
with each program/facility (mechanical systems, locker rooms, bathrooms, hallway space etc.).
PRESENT CONSIDERATIONS:
Staff from the St. Louis Park Rec Center and HGA professionals have been meeting to discuss
the feasibility of a new community center. Below are some general themes/comments that have
emerged during planning:
• Project goals are to create a busy year-round facility that is a community gathering place,
affordable and welcoming.
• Findings are that St. Louis Park Rec Center penetration into the market is already high.
The community trusts City leadership and knows to expect a good experience.
• The work to date has been to refine the space needs of the proposed Center that will serve
as the basis for site analysis and preliminary floor plans yet to come.
• The team has added further enhancements and refined the program established by the
Task Force.
• The team has toured peer facilities to discuss pros, cons and implications for St. Louis
Park.
• The plan is to build mechanical systems to meet energy saving goals and preferences for
building operation.
• The next steps are to finalize preliminary space needs, begin site assessment and concept
plans. Team anticipates completion of study by July 12, 2013.
PROGRAM COMPONENT ASSUMPTIONS: The following program components were
recommended by the Task Force. During this phase of planning we are going through each
component to ensure we have appropriate space and amenities associated with each of the items.
Staff is also identifying some areas where we could have potential partners. Staff has discussed
with John Basill relocating Discover St. Louis Park to a Community Center. At this time, John is
not interested in moving. He likes their presence at the West End. Friends of the Arts may also
be interested in an office at this facility.
Staff will explore working with one of the physical therapists in the area to see if they want to
have some office hours at the Community Center. It would be a nice tie in with using the
swimming pool and exercise area. Another potential partner we will explore is a private party
who owns and operates the café area. This area will be adjacent to commons/gathering place.
Study Session Meeting of May 13, 2013 (Item No. 4) Page 3
Title: Community Center Planning Check-in
Gymnasium
The gym is proposed to hold two full-size floors with a drop down curtain in the middle
separating them. There will be a set of bleachers that pull out from the wall on each side. At this
time we are considering a multi purposed poured floor rather than a traditional wood floor. There
are two reasons for this. First, it is less expensive to build and less expensive to maintain.
Second, it can be used for multipurpose events including all sports, tricycles and other equipment
used for little tyke events. It can also be used for special events where tables and chairs are set up
without worrying about scratching the wood floors. Staff envisions programming the gyms as
well as having them open for drop-in basketball. The current gyms in the schools are overused
by traveling sports so there is no time for kids and adults to drop-in and shoot baskets. We would
also like to look at an area in the back of one of the courts where we could drop in a batting cage
similar to what Chaska and other communities do in their gymnasium.
Aquatics
The trend in pool construction is to have areas for lap swimming, deep water and leisure/fun
areas. To accommodate that, we are proposing a lap pool with six lanes that would have deep
water at one end. The deep water could be used for deep water events (scuba diving classes etc.) as
well as hold a diving board and a climbing wall. The leisure pool would have youth play features
and slides with a zero depth entry area. An ADA accessible ramp is recommended for the lap
pool. That will allow all ages and abilities access to the pool as well as allow us to hold some
specialty classes for people with MS or those recovering from surgeries. This is another reason
we are exploring a partnership with a physical therapy group. Swimming lessons could be held at
either or both pools depending on the age of kids. At this time, Community Education runs the
swimming lessons at the schools. We will explore a partnership with them. Because of the
cleaning issues associated with a hot tub or spa, staff is not recommending one for this facility.
Drop-in Child Care
We are not proposing full time day care. This child care is only for parents and care givers who
are using the facility. There are many more regulations associated with full time day care.
Community Room
The capacity for this room wasn’t fully defined in the Task Force process. Staff is proposing a
room with a capacity of approximately 250 people. There appears to be a need for a space larger
than the banquet room at the Rec Center. The room we are proposing would be approximately
4,000-4,500 square feet and hold 55-60 round tables. A caterer’s kitchen will likely need to be
attached so that the room can be used by a variety of user groups. This room can be reserved for
a variety of functions and events. The Banquet Room at the Rec Center holds up to 160. We get
requests for bridge tournaments and other events that we aren’t able to accommodate because of
the current size of the banquet room. Staff recommends that this room be designed as a larger
room to allow for other uses.
Commons/Gathering Place
This would be near the front entrance and serve as a gathering place for people in the community.
The furniture would be stationary. The coffee shop/café would be adjacent to this space.
Kid’s Play Area
The task force discussed this being adjacent to the drop in day care. It was proposed to have a
climbing stationary feature along with a large motor play area with a variety of toys for kids to
play with. Although this a nice idea, many of the area centers have been criticized for their lack
Study Session Meeting of May 13, 2013 (Item No. 4) Page 4
Title: Community Center Planning Check-in
of cleanliness in the indoor play areas. Staff is will further explore options for this space that are
not as difficult to clean as the ball pits and enclosed slide areas.
Track
The goal is to make this as long as possible so there are fewer laps to the mile. We aren’t sure
how this lays out until we are able to do more site analysis. The thought is to have it go above the
gymnasium and possibly the exercise area. The track would be at least 10 feet wide to allow for
two people to walk or run side by side. Staff would like the Council to consider having the track
be free to the public to use at all times. This would help to promote health and fitness in our City.
Fitness
The two components of fitness are the exercise equipment and fitness studios where classes are
held. Since the trends in fitness classes change, we want to be able to adapt to those new classes.
We are proposing three rooms; large, medium and small to accommodate a variety of classes.
Actual sizes of the rooms are still being researched. Appropriate storage needs to be adjacent to
the rooms to hold equipment such as mats, balls, bikes, etc.
Party Rooms
One of the biggest revenue generators in other community centers is the ability to hold birthday
parties. Staff is proposing party rooms near the pool and possibly near the Kid’s Play area.
“Back of House” areas
While the Task Force did an excellent job of synthesizing the survey data and developing
program content, they didn’t spend any time on the support areas that make the Community
Center work. It was understood that this phase of planning would do that. HGA is in the process
of assessing the storage needs as well as rooms to hold the mechanical systems, size of locker
rooms, number of bathroom stalls, and length/width of hallways. To incorporate these areas, the
footprint of the building will be larger than what the Task Force presented.
Concept Facility Design and Site Analysis
Using criteria the Task Force submitted HGA will do a concept design and site analysis on the
following two sites:
1. The Rec Center / Melrose EDI area (there are a couple of scenarios using both sites to
make it work).
2. Southwest quadrant/corner of Highway 100 and West 36th Street.
As previously discussed with the Council, the Carpenter Park site was a viable option from a
traffic flow perspective only if Raleigh Avenue becomes a through street that connects to CASH
25. It does not appear that Raleigh Avenue will become a through street that connects with
CASH 25 in the near future. Staff suggests taking this off the list for future site study. We are
able to realize a savings in our planning by not having HGA do a detailed site analysis of this
area. Unless Council disagrees, we will concentrate our site analysis to the first two sites listed
above.
NEXT STEPS: Next steps are to finalize preliminary space needs, begin site assessment and
concept plans. Staff anticipates a final report will be presented to Council at the end of July. At
the July meeting, we will present an estimate of Capital Costs for the construction of the
building, operating cost estimates, revenue projections, and concept designs for the potential
locations. Staff is assuming that any facility that is built would include public art and adhere to
high architectural design standards.
Meeting: Study Session
Meeting Date: May 13, 2013
Discussion Item: 5
EXECUTIVE SUMMARY
TITLE: Annual TIF Management Report
RECOMMENDED ACTION: No formal action required. This is an information sharing
session.
POLICY CONSIDERATION:
• Does the City Council or EDA have any questions or concerns regarding the status of the
Tax Increment Financing (TIF) Districts within the City?
• What other information would be helpful for the City Council or EDA regarding the
City’s TIF Districts?
SUMMARY: Beginning in 2000, City staff along with representatives from Ehlers & Associates
has periodically presented the City Council and EDA with a report regarding the City’s TIF
Districts. This practice was started due to the City’s extensive use of this tool. This study session
discussion is a continuation of this practice.
Stacie Kvilvang from Ehlers & Associates, which is the City and EDA’s financial consultant,
and City staff will be discussing the Management Review & Analysis – Tax Increment Financing
Districts report with the City Council and EDA at a high level. The purpose of the report is to
review the status, financial condition, debt management, and future value of the City’s tax
increment districts. The report also describes the revenues generated from each TIF district,
identifies findings, and presents recommendations that should be discussed regarding the
management of the TIF districts and related obligations. Information contained in this report is
obtained from various sources, including, but not limited to: The City of St. Louis Park,
Hennepin County, State of Minnesota, Office of the State Auditor and Ehlers staff. Portions of
the information in the report are used by City staff throughout the year to provide a quick
reference guide when performing analyses and making recommendations to the City Council or
EDA.
FINANCIAL OR BUDGET CONSIDERATION: By updating the information contained the
report; staff is able to have an excellent resource when analyzing data or preparing financial
information to ensure a comprehensive picture for the City Council, EDA or end users of
information.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Management Review and Analysis – TIF Districts
TIF District Status Report – Power Point
Prepared by: Brian A. Swanson, Controller
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
May 2013 Management Review & Analysis Tax Increment Financing Districts City of St Louis Park, Minnesota Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 2
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 2 Table of Contents Management Review and Analysis ..................................................................................................... 3 Overview ............................................................................................................................................................................................. 3 TIF District Summary ......................................................................................................................................................................... 4 Obligations of the TIF Districts .......................................................................................................................................................... 7 Administrative Expenses .................................................................................................................................................................. 12 Assumptions ...................................................................................................................................................................................... 13 Recommendations ............................................................................................................................................................................. 14 Tax Increment Financing Districts ................................................................................................................................................. 18 Park Nicollet HSTI ........................................................................................................................................................................... 18 Trunk Highway 7 .............................................................................................................................................................................. 19 Victoria Ponds ................................................................................................................................................................................... 21 Park Center Housing ......................................................................................................................................................................... 26 Zarthan Avenue/16th Street ............................................................................................................................................................... 31 Mill City ............................................................................................................................................................................................ 39 Park Commons .................................................................................................................................................................................. 44 Edgewood ......................................................................................................................................................................................... 54 Wolfe Lake Commercial Redevelopment ......................................................................................................................................... 59 Aquila Commons .............................................................................................................................................................................. 64 Elmwood Village .............................................................................................................................................................................. 70 West End ........................................................................................................................................................................................... 87 Ellipse on Excelsior .......................................................................................................................................................................... 92 Hardcoat .......................................................................................................................................................................................... 100 Oakhill II ......................................................................................................................................................................................... 103 City Map of the TIF Districts ............................................................................................................ 104 Definitions ........................................................................................................................................... 105 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 3
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 3 Management Review and Analysis Overview Revenue from tax increment financing (TIF) districts is a financial asset of the City of St Louis Park. This revenue must be used primarily to address blight, contamination, housing or redevelopment needs for the parcels in the TIF district within a specified period of time. The revenue generated is first used to pay debt service on outstanding bonds, interfund loans and developer pay-as-you-go notes (PAYGO). A portion, but not all, of the remaining revenues can be used to participate in other eligible development projects and City initiatives. In the past fifteen years, the City utilized unobligated revenues from older TIF districts to complete the following projects: Park Commons property assembly and public improvements Excelsior Boulevard streetscape improvements Excelsior Boulevard bridge improvements Reilly tar clean-up activities Highway 7 and Louisiana Avenue storm water intersection improvements Louisiana Court Rehabilitation Erv’s Garage redevelopment Bikemasters (Construction Assistance Program) Hardcoat (Construction Assistance Program) Home Hardware Store (Construction Assistance Program) The factors that produce tax increment revenues change every year. At the same time, the state property tax laws have changed significantly since 1997, including the major reforms enacted in 2001. Despite reductions in revenue due to the reform, the City has more than adequate cash flow to pay for all outstanding general obligation tax increment bonds. A few of the TIF districts for which project costs were paid through a developer financed PAYGO note are not meeting scheduled principal and interest payments. However, the interest rates on these notes is much higher than what is seen in today’s market. Overall, the City has no obligation to make up shortfalls for these PAYGO notes, since they are revenue based notes and the risk is borne by the developer. In addition to property tax reform, significant changes enacted by the Legislature in 1990 have changed the way that cities can utilize TIF for development. The City has one older tax increment district established in 1986 which was not affected by the 1990 restrictions (Trunk Highway 7). While this District has decertified, funds from this district can be used for almost any redevelopment project/purpose in the City. The Office of the State Auditor (OSA) has a TIF division which is mandated by state law to collect annual reporting forms and, if necessary, audit the use of TIF. Such audits could result in a letter to the county attorney or attorney general for enforcement actions. To date the City has not Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 4
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 4 been audited. Due to legislative and market changes and oversight of TIF districts by the OSA, the management of the City’s TIF districts is an ongoing activity. Ehlers worked with City staff to create the following plan for the management of its TIF districts and their related obligations. TIF District Summary Currently the City has one inactive and fourteen active TIF districts and two hazardous substance subdistrict as outlined in the charts as follows. A more detailed explanation of each district can be found starting on page 17. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 5
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 5 Park Nicollet TrunkVictoriaParkZarthan/ MillParkHSTIHighway 7PondsCenter16th AvenueCityCommonsDistrict TypeHazardous Substance SubdistrictRedevelopment RedevelopmentHousingRedevelopment Redevelopment Redevelopment Soils ConditionProject/Costs FinancedPark Nicollet environmental remediationPublic improvements, recreational facilities and targeted land acquisition72 twin home units and part of the Hutchison Spur trail. Financed $760,000 soil corrections and remediation and $700,000 of City costs for trail improvements91 units of senior assisted living rental housing. Financed $500,000 land acquisitionTwo hotels developed by CSM and 86 townhome units build by Rottlund. Financed $3,945,000 land acquisition and site improvements200 rental housing units developed by MSP Real Estated. Financed $3,531,900 developer site costs.Excelsior and Grand retail, office and rental housing and condos developed by TOLD. Financed $3.5M in public improvements and $15.55M in site and parking ramp costs79,000 s.f. office warehouse facility developed by Real Estate Recycling (CPD Edgewood Investors). Financed $600,000 soils and clean-up costsApproved9/3/1993 4/15/1985 4/1/1996 10/7/1996 12/20/1999 3/20/2000 1/16/2001 9/15/2003Legal max term12/31/2016 12/31/201112/31/202312/31/202312/31/202612/31/202612/31/202712/31/2025Anticipated term12/31/2013 12/31/201112/31/201312/31/202312/31/202312/31/201812/31/202712/31/2021First Increment20021986199819982001200120022005Current ObligationsNone1996/2004A GO TIF Bonds 2009 GO TI Refunding Bonds$760,000 PAYGO Note None$1,101,362 PAYGO Note 1 $1,448,088 PAYGO Note 2 and $1,395,547 PAYGO Note 3$3,431,137 PAYGO Note$3,135,046 interfund loan $3,500,000 Phase I PAYGO Note, $3,300,715 Phase E PAYGO Note, $4,668,633 Phase NE PAYGO Note, $4,079,105 Phase NW PAYGO Note$600,000 PAYGO NoteOther ObligationsNoneNone$400,000 for ERV's garage redevelopment$500,000 Loan to Lousisana Ct to buy down bondsNoneNoneNoneNoneContruction Assistance Program (CAP) FundingNoneNone$500,000 for Hardcoat (former Flame Metals property. Portion will be repaid from new ED TIF district) and $25,000 toCAR Prperties LLC (former Home Hardware Store)None None$70,000 to CKJ Properties (former Bikemasters property)NoneNone2013 Est TIF Revenue$1,260,307N/A$440,286$108,639$387,977$315,962$1,713,202$44,521Fiscal DisparitiesN/AA (outside)A (outside)A (outside)B (inside)B (inside)A (outside)B (inside)County Number13011302130313041305/1306130713081309EdgewoodDistrict Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 6
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 6 Wolfe LakeAquila Elmwood Highway 7 CorporateWest EndEllipse on Commons Village Center & HSTI ExcelsiorDistrict TypeRedevelopment Housing Renewal and RenovationRedevelopment and Hazardous Substance SubdistrictRedevelopment Redevelopment Economic Development Economic DevelopmentProject/Costs FinancedTwo office/commercial buildings consisting of 65,000 s.f. developed by Beltline Industrial Park, Inc. Financed $996,000 soils and site condition costs.122 unit limited equity senior cooperative developed by Stonebridge. Financed approximately $1,000,000 land acquisition costs.Rottlund - 224 townhomes and condos near Wooddale and Highway 7. Financed approximately $790,000 in site and land costs. Hoigaards - 74 condos over 25,000 sq/ft of retail, 220 apartments. Financed $3,495,000 and $935,000 in 2010 TIF revenue bonds for site and land costs. Yet to issue costs for 100 sr. apartmenst and 22 town homes. Grecco - 115 senior rental units over 10,000 sq/ft of retail. Financed $490,000 in site and land costs.Created to provide funding to clean up contaminated land and the subsequent construction of a 78,000 s.f. faciltiy1.5M s.f. office, retail, hotel, theater complex developed by Duke Realty. Financed $21,100,000 site costs and up to $5,000,000 City public improvements Ellipse I - 132 Market Rate Apartments and 16,000 s.f. commercial and Ellipse II - 58 Units of MarketRrate ApartmentsAcqisition and renovation of a 33,600 sq/ft manufacturing facility and construction of 1,500 sq/ft of officeConstruction of 21,432 Sq/Ft OfficeApproved7/7/2003 9/7/2004 8/2/20045/15/200611/19/20072/2/200912/20/20101/17/2012Legal max term12/31/203112/31/203212/31/202912/31/203212/31/203612/31/203612/31/202112/31/2023Anticipated term12/31/202012/31/201812/31/202312/31/203212/31/203112/31/203612/31/202112/31/2023First Increment20062007200720072011201120132014Current Obligations $996,000 PAYGO Note$1,050,000 PAYGO NoteHoigaards - 2010A TIF Revenue Bonds - $3,495,000 and 2010B TIF Revenue Bonds - $935,000 Grecco -$490,000 PAYGO Note (not yet issued) IFL - $3,430,128 ad Bonds - $3.8M (yet to be issued)PAYGO Notes - Note A $2,100,000 Note B $360,000 Note C $72,000 and Note D $23,000$5,490,000 2008A GO TIF Bonds and $21.1 M PAYGO Note (maximum amount, yet to be issued)$1,230,000 Note A - PAYGO and $220,000 Note B - PAYGO $700k Ellipse II Paygo (not yet issued)$500,000 Interfund Loan from Victoria Ponds TIF DistrictNoneOther ObligationsNone None None None None None None NoneContruction Assistance Program (CAP) FundingNone None None None None None None None2013 Est TIF Revenue$122,775 $156,869 $951,201 $148,637 $828,349 $217,002 $0 $0Fiscal DisparitiesB (inside) B (inside) B (inside) B (inside) B (inside) B (inside) B (inside) B (inside)County Number1310 1311 1312 1313 1314 1315 1316 1317Hardcoat Oak HillDistrict Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 7
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 7 Obligations of the TIF Districts The revenues from these districts are largely site specific, meaning that the revenues are restricted by law and by contract with the developers. The revenues must be used primarily to address blight, contamination, housing or redevelopment needs for the parcels in the TIF district within a specified period of time. The City has the following obligations outstanding (after the February 1, 2013 actual bond and PAYGO payments are made): Summary of Outstanding Obligations (after the 2/1/2013 payment) DistrictNoteOutstanding After 2/1/2013Note A1,516,701$ Note B260,006$ Note C75,318$ Note D24,060$ Aquila CommonsStonebridge689,634$ EdgewoodEdgewood312,491$ Wolfe LakeBeltline 630,032$ Excelsior & Grand 4,851,244$ Phase NE 4,739,870$ Phase E 3,684,189$ Phase NW 4,721,811$ Victoria PondsSVK 68,070$ Mill CitySLP Apts5,753,532$ CSM Note 11,572,001$ CSM Note 22,092,464$ CSM Note 31,197,618$ West EndDuke20,909,528$ Bader Note A1,170,538$ Bader Note B212,169$ Ellipse II LLC700,000$ TOTAL55,181,276$ Pay As You Go ObligationsHwy 7 Corporate CenterPark CommonsZarthanEllipse on Excelsior Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 8
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 8 IssueAmount Paying District Term2008B GO Tax Increment Bonds4,870,000$ West End 2/1/20242004A Tax Increment Refunding Bonds1,415,000$ Trunk Hwy 7 2/1/20182010A Tax Increment Revenue Bonds - Hoigaards 2,925,000$ Elmwood 2/1/20232010B Tax Increment Revenue Bonds - Hoigaards 771,834$ Elmwood 2/1/2023Bonds as of 2/1/2013 Construction Assistance Program In 2009, the Legislature passed the JOBS Bill and extended it for one year as part of the 2010 legislative session. One element of this was the temporary authority to stimulate construction. This portion of the legislation allows cities to utilize cash balances in existing TIF district (not needee to pay debt service on outstanding obligations) to spur new construction or substantial rehabilitation of private buildings and ancillary facilities, if construction commences by July 1, 2012 and the dollars are expended by December 31, 2012. On July 19, 2010 the EDA approved a Construction Assistance Program (CAP) and at a public hearing, adopted the required Spending Plan. The TIF districts that have available funding for CAP are: Victoria Ponds Park Center Housing CSM Mill City Edgewood Wolfe Lake Aquilla Commons Elmwood Village (Rottlund portion of TIF only) There are three projects that have been funded through the CAP program at this time – Hardcoat (former Flame Metals building), CKJ Properties LLC (former Bikemasters building) and CAR Properties LLC (former Home Hardware Store). The EDA provided $500,000 to Hardcoat to purchase and renovate the former Flame Metals property within the City. Hardcoat renovated the building and site, and relocated its operations there. The existing industrial building is approximately 33,600 square feet and was constructed in 1963. Both the interior and exterior had numerous building code deficiencies. Following Flame Metals’ departure in 2009, the building’s interior Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 9
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 9 has been emptied, thoroughly cleaned, repainted, and many (but not all) code deficiencies have been addressed. The project includes a complete renovation of both the interior and exterior of the building as well as the addition of approximately 1,500 square feet of office/conference space on the north side of the building. Renovation included a new roof, new exterior facelift, new windows and dock doors, new offices and interior spaces, new electrical and plumbing systems, new energy efficient HVAC equipment, new parking lot and landscaping, rain gardens and site amenities, as well as the construction of a 1,500 SF addition for office/conference space. Hardcoat initially occupied approximately 25,000 square feet of the building. The balance has been leased to a complementary business and will provide Hardcoat with future expansion capacity. The $500,000 in funding for this project came from the Victoria Ponds TIF district. In addition, the EDA created a new economic development TIF district on December 20, 2010 for the project to repay as much of the funds back to this district. The EDA provided $70,000 to CKJ Properties LLC to renovate the existing Bikemasters property within the City. The existing building is approximately 18,000 square feet and was constructed in 1950. The building was neglected and fell into disrepair. As a result, the building sustained damage due to lack of maintenance and vandalism. The building went into foreclosure in 2009 year and was purchased in September 2010 by CKJ Properties LLC. The project included a complete renovation of both the interior and exterior of the building. Renovation included new windows and doors, new bathrooms, new flooring and carpeting, new ceilings, new electrical and plumbing systems, new energy efficient HVAC equipment, new dock doors and downspouts, as well as interior and exterior painting, landscaping, parking lot resurfacing and striping, and screening of outdoor dumpsters. The property is currently leased to six (6) office tenants. The $70,000 in funding for this project came from the Mill City TIF district. The City provided $25,000 to CAR Properties LLC. to renovate the former Home Hardware Store. The building is located in the Lenox neighborhood near the intersection of Wooddale and West Lake Street. It was originally constructed in the 1950’s within a strip of commercial buildings and has always been a hardware store. Despite its use as a former hardware store, the building was neglected for some time. CAR Properties made the required repairs and renovated the building. Renovation included a new roof, front window, energy efficient HVAC equipment, as well as remodeling the bathroom and making other various repairs so as to make the building code compliant. Upon renovation the owner expects to lease the property to another commercial tenant. The $25,000 in funding for this project came from the Victoria Ponds TIF District. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 10
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 10 TIF as a Development Tool Continuous redevelopment is vital to maintaining the City’s long-term economic health and vitality. St Louis Park has utilized TIF for key redevelopment and housing projects since 1972 when the Oak Park Village TIF District was established. Utilizing this tool to accomplish the various goals of the City has strengthened the overall diversity of housing options, land uses and tax base, while increasing employment opportunities and cleaning up contaminated sites. One immediate benchmark of the benefit in utilizing TIF is the overall increase in market value from when the district was created to when it is fully developed and aging. As illustrated in the following table, the City’s overall market value has increased in the various TIF districts by over 600%: DistrictCounty District Number Original Market Value Pay 2013 Market Value Percent Increase in ValueVictoria Ponds1303$500,000$32,635,7886527.16%Park Center1304$493,000$7,553,0001532.05%Zarthan1305 and 1306$4,053,600$30,299,474747.47%Mill City1307$708,700$20,000,0002822.07%Park Commons1308$6,688,000 $131,333,7141963.72%Edgewood1309$1,000,000$3,795,000379.50%Wolfe Lake1310$1,717,300$9,500,000553.19%Aquila1311$1,900,000$15,683,325825.44%Elmwood1312$10,864,500 $84,189,437774.90%Highway 7 Business Center1313$2,772,700$9,208,800332.12%West End (partial completion)1314$43,051,000 $104,087,000241.78%Ellipse (partial completion)1315$1,931,800$17,954,000929.39%Hardcoat (MAA for Pay 2013)1316$1,184,700$980,000‐17.28%TOTALN/A$75,680,600 $467,219,538617.36% Even though there are many benefits to utilizing TIF as a development tools, cities still wonder if they are utilizing the tool too much or not enough. One good way to measure a city’s use of TIF is to compare the use of TIF with similar cities. A common measure of the use of TIF is the percentage of the gross tax base captured in TIF districts. Below is a chart which demonstrates St. Louis Park’s current and projected tax base which is captured in TIF districts with similar cities. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 11
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 11 City of St. Louis ParkProjected Captured TIF Tax Capacity and Comparison with Other CitiesCity of St. Louis Park2005200620072008200920102011201220132014201520162017Captured TIF Tax CapacityOak Park Village 356,218 381,304 410,551 421,409 415,008 0 0 0 0 0 0 0 0Excelsior Blvd 1,981,392 2,108,501 2,339,926 2,567,285 2,687,643 0 0 0 0 0 0 0 0Excelsior Blvd HSTI 94,170 94,170 94,170 94,170 94,170 1,001,098 950,066 950,066 950,066 0 0 0 0Trunk Highway 7 715,334 775,071 843,046 935,579 985,216 1,002,810 980,962 0 0 0 0 0 0Victoria Ponds 361,176 366,936 383,092 387,589 379,152 375,725 365,374 358,947 330,709 0 0 0 0Park Center 112,960 111,015 113,895 115,628 115,628 91,028 86,053 86,053 86,053 86,914 87,783 88,660 89,547Zarthan 311,796 332,144 372,175 383,421 364,723 354,566 293,749 288,534 292,934 295,863 298,822 301,810 304,828Mill City 207,062 199,576 202,099 207,076 207,076 207,076 202,076 202,326 237,326 239,699 242,096 244,517 246,962Park Commons 514,797 693,497 1,140,159 1,657,045 1,602,894 1,541,559 1,432,389 1,392,819 1,438,880 1,453,269 1,467,801 1,482,480 1,497,304Edgewood 10,678 36,652 41,278 61,132 62,002 61,526 56,456 36,337 36,812 37,180 37,552 37,927 38,307Wolfe Lake 113,001 114,445 118,666 114,517 115,592 99,421 100,205 101,516 102,531 103,556 104,592 105,638Aquila Commons 4,376 53,663 186,406 178,292 156,585 137,167 137,278 138,651 140,037 141,438 142,852Elmwood 216,652 495,288 919,265 1,006,332 864,609 794,241 832,408 840,732 849,139 857,631 866,207Highway 7 Business Center 6,178 88,009 89,789 94,538 88,298 83,966 85,065 85,916 86,775 87,643 88,519Highway 7 Subdistrict 53,204 53,504 53,504 53,504 53,504 53,504 53,504 54,039 54,579 55,125 55,676West End740,595 757,301 803,793 811,831 819,949 828,149 836,430Ellipse on Excelsior9,843 185,529 201,265 272,901 275,630 278,386 281,170Hardcoat0 19,062 21,349 24,066 29,411Future Captured TIF Tax Capacity4,665,583 5,211,867 6,335,246 7,639,464 8,276,993 6,083,646 6,379,980 5,426,995 5,587,609 4,438,587 4,485,070 4,532,424 4,582,852Total Tax Capacity (Gross) 51,461,150 57,202,440 63,401,476 68,465,080 69,704,848 68,815,028 66,089,870 63,092,802 61,908,294 62,527,377 63,152,651 63,784,177 64,422,019Percentage of Tax Base in TIF9.1% 9.1% 10.0% 11.2% 11.9% 8.8% 9.7% 8.6% 9.0% 7.1% 7.1% 7.1% 7.1%Assumes 1% annual increase in tax base and TIF beginning in payable 2014Comparable Cities Final Pay 2013 City2013 Est Captured TIF as a % of Tax Base City Tax RateBond RatingMinnetonka2.0%37.213%AaaBrooklyn Park3.2%62.741%AA+Edina3.9%27.216%Aaa/AAAMinneapolis6.6%72.717%Aaa/AAASt. Louis Park9.0%48.228%AAABloomington 7.5% 47.207% Aaa/AAAGolden Valley 9.1% 58.204% AaaRichfield 10.2% 65.667% Aa2Hopkins 9.3% 63.819% AANew Brighton 14.9% 44.663% AAFinal Pay 2013ProjectedActualStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 12
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 12 Today, the City’s use of TIF is about average compared to similar cities. Also shown are comparable cities’ tax rates and bond ratings. Although this is a small sample of municipalities, the amount of TIF used by a City does not seem to correlate directly with a City’s tax rate or bond rating. In conversations with rating agencies, we do know that market value growth and redevelopment are important factors in maintaining St Louis Park’s AAA bond rating. Following is a table which demonstrates the historical market value growth of the City of St. Louis Park. Tax YearTaxable Percent ChangePayable Market Value From Prior Year2013 4,891,018,550-2.54%2012 5,018,306,562-5.61%20115,316,617,000 -4.40%2010 5,561,557,200 -1.39%2009 5,639,683,900 1.49%2008 5,556,997,200 7.23%2007 5,182,504,700 10.67%2006 4,682,796,400 12.04%2005 4,179,671,600 10.42%2004 3,785,184,300 9.11%2003 3,469,075,400 9.35% Tax YearCityPercent ChangePayableTax Rate From Prior Year201348.2285.60%201245.6725.54%201143.27611.44%201038.8341.06%200938.4266.43%200836.1030.08%200736.074-0.74%200636.344-2.77%200537.381-5.06%200439.3728.19%200336.390 The above two tables show the history for the City’s taxable market value and the City’s tax rate. Factors such as total general and debt levy needs, state law and economic factors will influence both the market value and the corresponding tax rate. A correlation cannot always be made when considering market value, tax rate and total tax capacity captured by tax increment districts. Administrative Expenses Minnesota TIF law defines certain costs to administer and maintain the district as allowable costs that can be paid for from tax increment revenues. These generally include City staff time, legal expenses, financial advisory expenses and publication and reporting expenses. This allows a City to defray documented staff time that is most likely a General Fund expense, such as staff time in Finance, Community Development, Assessing and Administration. Time spent can be paid for from TIF revenues rather than general property tax or other revenues. The table on the next page shows the estimated amount of increment remaining in the City’s TIF districts for payable 2013 after district obligations have been paid and after estimated administrative costs have been deducted. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 13
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 13 Park Nicollet TrunkVictoriaParkZarthan/ MillParkHSTIHighway 7PondsCenter16th AvenueCityCommonsPay 2013 TIF00440,286108,639387,977315,9621,713,20244,521Obligations Paid0709,76168,0700328,623274,5601,586,10941,947Allowable admin0044,02910,86438,79816,58851,396445Net TIF Pd from Balance328,18897,77520,55624,81475,6982,129DistrictEdgewood Wolfe LakeAquila Elmwood Highway 7 BusinessWest EndEllipse on CommonsVillageCenter & HSTIExcelsiorPay 2013 TIF122,775156,869951,201148,637828,349217,002Obligations Paid115,371148,697531,088140,139760,334189,349Allowable admin6,1397,84347,5607,43218,82410,850Net TIF 1,266329372,5531,06649,19116,803District Assumptions Before discussing the recommendations of the current TIF analysis, it is important to understand the assumptions used in making these projections. 1. Fund Balances. Fund balances shown for debt service funds are based on actual unaudited amounts for December 31, 2012. 2. Tax Increment. Pay 2013 tax increment revenues are based upon Hennepin County reports. 3. Projected Revenues. Projected revenues do not account for additional development (except the developments under a development agreement) or inflation/decrease of existing values. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 14
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 14 Recommendations The updated financial analysis of the City’s TIF Districts offers the following recommendations: 1. Pooling. Many of the districts will have cash balances within them due to funds not being utilized for administration or other projects within or outside the district. Following is a chart outlining various districts that may have some cash balances available for pooling as of February 1, 2013, using the 12/31/2012 cash balances less the 2/1/2013 obligation payments: Tax Increment Currently Available for Legal Pooling DistrictFebruary 1, 2013 Cash BalanceType of Project EligibleAfter 2/1 PymtsAquila Commons 16,286$ Affordable Housing* Park Center Housing 589,097$ Affordable Housing Total Affordable Housing605,383$ Mill City59,151$ RedevelopmentVic Ponds370,711$ RedevelopmentWest End68,806$ RedevelopmentWolfe Lake23,598$ RedevelopmentZarthan275,376$ Redevelopment Total Redevelopment797,642$ Note: $500,000 of the Park Center Housing TIF balance will be transferred to the HRA fund in 2013 for housing rehabilitation programs Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 15
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 15 The balances in the chart that follows are based on the projections, which include all obligations that have been issued and any current projects. The balances will change as future projects are identified and funded. Following is a chart outlining various districts that may have some cash balances available for pooling at the end of their term: TIF Balances Available For Legal Pooling at End of District, If Current Available Pooling Is Not Used DistrictEnd Date of ObligationFund Balance Type of Project EligibleVictoria Ponds2013598,651$ RedevelopmentZarthan2023969,885$ RedevelopmentMill City201958,595$ RedevelopmentPark Commons20282,291,469$ RedevelopmentWolfe Lake2020132,450$ RedevelopmentAquila Commons201896,088$ Affordable HousingElmwood20231,529,315$ RedevelopmentHwy 7 Corporate Center202744,159$ Redevelopment As noted, several of the TIF districts will have significant cash balances at the end of their term. We recommend completing a pooling analysis for the Zarthan, Park Commons and Elmwood districts to determine how much will be available for use and what strategies can be implemented to secure the use of these funds if deemed appropriate by the City. 2. Use of TIF in Districts With On-Going Cash Balances. There are three (3) districts which may have significant current and future cash balances for eligible TIF activities include: Park Center TIF District: Currently the City will be transferring $500,000 in 2013 to the City’s Housing Rehabilitation Fund for use by income qualified home owners under the various programs. Approximately $185,000 per year will be available through the term of the district for additional rental or owner-occupied housing programs whose residents meet the income restrictions outlined in the TIF law. We recommend formalizing this plan in some form. Elmwood TIF District: There is approximately $370,000 per year available to pay on the City’s interfund loan for the district and for planned public improvements related to Highway 100 and Wooddale and 36th Avenues. Victoria Ponds: Approximately $371,000 currently available, with an additional $446,000 available in 2013 (total of approximately $817,000). This district obligation is paid off on August 1, 2013 which means that the second half of the 2013 TIF has to be sent back Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 16
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 16 to the County for redistribution, thus reducing the available TIF for pooling by approximately $220,000. The total unobligated increments that can be utilized for legal pooling is approximately $490,000. We recommend amending the TIF plan as soon as possible to update the budget and authorize use of these funds for EDA/City projects that meet qualified use/costs. 3. Five Year Rule. MN Statute 469.1763 subdivision 3 requires that, within five years from certification date, funds must have been expended or obligated for projects within the TIF district. The State Legislature amended the five year rule to increase it to ten years for districts that were certified on or after June 30, 2003 and before April 20, 2009. The following TIF districts meet the new ten year requirement and should be tracked to avoid a lost opportunity for new projects within those district’s boundaries. District 5 Year DeadlineWolfe Lake4/26/2014Ellipse7/9/2014Aquila4/4/2015Elmwood Village - Original Area5/31/2015Elmwood Village - Modified Area2/21/2016Highway 77/17/2016West End7/9/2018 4. Decertification. Minnesota Statute 469.1763 subdivision 4 places restrictions on the use of increment after the applicable five-year period is completed (this was extended to 11 years for the districts noted in #3). Revenues may only be used to pay debt or contracts that were entered into before the five year rule deadline. Once outstanding obligations are paid, the district must be decertified. The following three TIF districts should be considered for decertification as follows: a. HSTI. We have determined that the City has a potential liability of approximately $145,000 in outstanding tax petitions. We recommend the following: 1. Retain $145,000 in the district until such time the tax petitions are either stipulated or settled 2. Return the remaining balance in the TIF account of $1,033,500 to the County for redistribution 3. Return the first half 2013 TIF receipts to the County for redistribution when received in June 4. Return the second half 2013 TIF receipts to the County for redistribution when received in December Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 17
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 17 b. Victoria Ponds. The final payment for the PAYGO note is due to be made on August 1, 2013. We recommend that the City decertify this district after August 1, 2013. Since the City will still receive the second half increment, it will need to return it to the County upon receipt for redistribution. It is estimated that if the district is decertified after August 1, 2013, that the City’s portion of the second half TIF and any additional TIF that is in excess of legal pooling that would be redistributed would be approximately $87,500 c. Oak Hill. This district was created under the JOBS bill which allowed office use in an economic development district, as long as construction commenced by July 1, 2012. Since the project has not yet moved forward, we recommend decertifying this district because it will no longer qualifies as an economic development TIF district, unless the end use changes to manufacturing/warehouse use, or the JOBS bill is extended in the 2013 legislative session. Note: The City may utilize its portion of the returned TIF receipts (from the HSTI and Victoria Ponds Districts) of approximately $912,200 for any governmental purpose. 5. Look Backs. Currently look back calculations are required on the following district: a. Aquila Commons. Within 60 days after closing on initial sale of all units, a look back was to be completed. This project was completed in 2006 and to date, not all of the units have been sold. We recommend completing the look back at this time since it is unknown if all the units will ever be sold and likely, the holding costs of these units have already depleted a significant portion of the 8% return that the developer was allowed under the original contact. 6. Interfund Loans. The 2001 Legislature made several changes to the process for establishing an interfund loan. The City should continue its practice of approving interfund loan resolutions and setting amortization schedules each time funds for TIF projects are borrowed from City or EDA funds. The City needs to go through each district to identify all interfund loans and then make sure that they are “booked” as loan obligations on the City’s Financial Statements. 7. Excess Increment. Excess increment is a new law which impacts the ability to use increment above any outstanding budgeted or actual obligations. Excess increment calculations are required each year by the OSA in their reporting forms. Based upon the 2012 TIF reports, no districts show an excess increment issue. However, total budgets should continue to be monitored carefully to avoid excess increment. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 18
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 18 Tax Increment Financing Districts Park Nicollet HSTI Park Nicollet HSTI Subdistrict (County #1301) is a hazardous substance sub district and is located in the former Excelsior Boulevard TIF district. It was established on September 9, 1993. It captures the “base value” or existing value of certain parcels for environmental clean-up in the Park Nicollet area. The EDA may take up to the first 5% of annual increment for administrative expense. The remaining increment is paid to Park Nicollet on a pay-as-you-go basis. The final payment on the obligation was paid on August 1, 2012. As background, Park Nicollet was responsible for $1,250,000 of expenses once they reached $6,224,905 in total claims. The maximum on the note for total claims was capped at $9,000,000. As of 2010, all claims have been submitted and total $6,224,905. After subtracting the $1,250,000 in costs that Park Nicollet is responsible for, the total principle amount of the TIF Note was set at $4,974,905 and carries zero percent interest. Park Nicollet did not move forward with Phase II of the development. The EDA determined that failure to complete Phase II resulted in a loss of TIF for the TIF District in the amount of approximately $312,000. In 2008 Park Nicollet acknowledged this financial impact, and paid that amount to the EDA. In 2011, the EDA and Park Nicollet negotiated a resolution to the ongoing default of Phase II never being constructed with these goals in mind: (1) recognize Redeveloper’s significant accomplishments to date, and acknowledge that market forces have contributed to the Phase II default; (2) recognize that the need for financial assistance has been reduced as well, and acknowledge that the EDA should be compensated in some fashion for the failure to realize the full tax base growth that was part of the consideration for the Original Contract. In consideration of releasing their obligation to construct this phase, the EDA made payments in the amount that left an unpaid balance on the Note of $500,000. The final payment was made on August 1, 2012. This district should be decertified and all remaining TIF after what is being held back to cover any tax petition adjustments should be returned to the County. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 19
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 19 Trunk Highway 7 Description: Trunk Highway 7 (County #1302) is a Redevelopment District established on April 15, 1985 and is located within the Redevelopment Project Area No. 1. Originally the district encompassed 42 parcels of land and was established to fuel anticipated projects along the corridor. Adopted………………………….….. 04/15/1985 Requested Date……………………... 04/29/1985 Certified Date…………………….…. 09/26/1985 Decertified……………………….….. 12/31/2011 Obligation End date……………………….. 2018 Modification………………………... 10/07/1996 09/02/1997 Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. This section was effective for districts with a certification request after October 2, 1989 and does not apply to this district. Therefore, there is significant flexibility on what the City may expend. Obligations: This district is currently obligated to pay the $7,490,000 GO Tax Increment Refunding Bonds of 2004A. The 2004A Bonds refunded the 1996 GO Tax Increment Bonds. A total of $4,110,000 of outstanding principal for the years 2010 through 2016 was partially defeased in 2009. The final payment on the bonds is 2/1/2018. Recommendations: 1. Use of TIF. The projections show the remaining balance being used to pay the 2004A bonds. In addition, the City must continue to report on the District annually to the OSA until all funds are expended. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 20
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 20 City of St. Louis ParkTH7 TIF DistrictBasic AssumptionsOption A District:1302Inflation Rate0.00%Assumes Last Increment In2011BaseTotalTax Rate2009 316,414 1,301,630 107.8190%2010 316,414 1,319,224 112.2210%Cash Flow Projections2011 316,414 1,297,376 121.8240%1.00% 7.00%New Tax Fiscal Tax Other Invest Debt Admin. Other EndTIF Yr,MonthYearBaseTotalDevelopmentCapturedRateYearIncrementRevenueIncomeServiceExpenseExpensesBalance16 2/1 20022001 - - - 16.5 8/1 2002 329,836 1,092,440 - 762,604 126.1960%17 2/1 20032002 924,313 205 3,315 885,386 64,702 533 225,254 17.5 8/1 2003 328,639 1,103,822 - 775,183 123.4760%18 2/1 20042003 893,108 (2,303) 883,052 76,990 525 155,492 18.5 8/1 2004 327,770 1,048,503 - 720,733 120.9420%19 2/1 20052004 831,358 801,935 66,493 - 118,422 19.5 8/1 2005 327,770 1,043,104 - 715,334 114.2710%20 2/1 20062005 807,572 801,935 119 - 123,940 20.5 8/1 2006 316,414 1,091,485 - 775,071 107.2660%21 2/1 20072006 828,393 769,697 66,256 17,902 98,478 21.5 8/1 2007 316,414 1,159,460 - 843,046 107.1000%22 2/1 20082007 904,091 46,844 452 830,670 - 219,195 22.5 8/1 2008 316,414 1,251,993 - 935,579 103.0550%23 2/1 20092008 949,942 9,914 888,698 - - 290,353 23.5 8/1 2009 316,414 1,301,630 - 985,216 107.8190%24 2/1 20102009 1,065,572 82,271 62,620 1,336,902 9,630 - 154,284 24.5 8/1 2010 316,414 1,319,224 1,002,810 112.2210%25 2/1 20112010 1,104,562 5,042 1,060,574 4,027 - 199,287 25.5 8/1 2011 316,414 1,297,376 980,962 121.8240%26 2/1 20122011 1,128,010 9,167 562,346 5,390 - 768,728 26.5 8/1 2012 - - - 27 2/1 20132012 (20,731) 8,454 51,665 2,052 - 702,734 27.5 8/1 2013 - - - 28 2/1 201420137,027 709,761 - - 0 28.5 8/1 2014 - - - 29 2/1 201520140 - - 0 29.5 8/1 2015 - - - 30 2/1 201620150 - - 0 30.5 8/1 2016 - - - 31 2/1 201720160 - - 0 31.5 8/1 2017 - - - 32 2/1 201820170 - - 0 32.5 8/1 2018 - - - 33 2/1 201920180 - - 0 Total9,436,921100,3988,821,195 293,607 18,960Notes: 1. Increment collected for payable 2005 reflects the projected actual TIF revenue per City. 2. IFL in Highway 7 Corp Center in 2009 allows for that district to pay any shortfalls on the 2004A refunding bonds.Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 21
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 21 Victoria Ponds Description: Victoria Ponds TIF District (County #1303) is a redevelopment district established on April 1, 1996 and is located within Redevelopment Project No. 1. Originally, the district encompassed four parcels of land and was established to facilitate the construction of 74 owner occupied townhomes. The first 10% of annual increment is retained by the City’s EDA for administrative and legal pooling costs. The remaining 90% of increment is utilized for payment on the $760,000 PAYGO note with SVK Development. After the August 1, 2013 payment, the note will be paid in full. Increment not used for this agreement was used to repay a $700,000 interfund loan for a portion of the costs associated with Hutchinson Spur Trail, which has been paid in full. Excess increment was returned to Hennepin County in 2008 in order to be able to pool future increments. The City pooled $410,700 from this District for the Erv’s Garage/Lake Street Office Building LLC and paid this amount in full in July, 2008. In 2012, $525,000 was used for the CAP program ($500,000 for Hardcoat and $25,000 for CAR Properties LLC). These funds were spent under the JOBS Bill authorized by the legislature in 2009 and extended in the 2010 legislative session. Use of these dollars under the special legislative authority are exempt from the standard pooling limitations of the District. The City also created an economic development TIF district under the JOBS Bill for Hardcoat, with the increment that is generated going to repay an interfund loan to this District. Adopted…………………………. 04/01/1996 Requested Date………………….. 06/19/1996 Certified Date…………………… 06/28/1996 First Increment…………………… 07/1998 Anticipated Decertification…….... 12/31/2013 Modifications………………….… 04/07/2008 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 22
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 22 Former and Current PID Numbers: Fiscal Disparities Election: The City elected to calculate fiscal disparities from outside (A election) the district. Frozen Tax Rate: 140.1150% Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is one obligations for this district as follows: $760,000 PAYGO Note at 8.5% interest – This Note was issued on November 20, 1996 to SVK Development and will be paid in full on August 1, 2013. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. Victoria Ponds met the requirement when the Development Agreement with SVK Development Inc. was signed and a Tax Increment Revenue Note was issued on November 20, 1996. Former PID # New PID #New Use07-117-21-44-0103 07-117-21-41-0072, 07-117-21-41-0074 thru 07-117-21-41-010708-117-21-32-005007-117-21-44-010318-117-21-12-000508-117-21-32-0054 thru 08-117-21-32-0069, 08-117-21-32-0071, 08-117-21-32-0074 thru 08-117-21-32-010018-117-21-31-000118-117-21-12-0048 thru 18-117-21-12-005618-117-21-13-0088 thru 18-117-21-13-009018-117-21-31-006318-117-21-34-002118-117-21-34-0030 thru 18-117-21-34-003274 Town HomesStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 23
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 23 Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. Victoria Ponds Four Year Rule was June 2000. Five Year Rule: At least 75% of tax increment revenues generated within Victoria Ponds district must be used to pay for qualified costs within the district. The Five Year rule timeline has passed, which was June 2001. As of December 31, 2010, a total of $410,700 has been used outside the district. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This timeline has passed for Victoria Ponds, which was June 2001. Recommendations: 1. Pooling Analysis and Use of Funds. It is estimated that there will be approximately $490,000 available for legal pooling after the second half increment is received and the final SVK payment is made. The projection below shows the return of the second half 2013 increment. We recommend that the City modify the TIF District prior to August of 2013 and develop a plan for the use of these funds. If no pooling is completed, the balance will have to be returned when the obligation is paid off after the August 1, 2013 payment. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 24
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 24 City of St. Louis ParkVictoria Ponds TIF DistrictBasic AssumptionsOption A District: 1303Inflation Rate 0.00%Assumes Last Increment In 2013 ExpectedBaseTotalTax Rate2023 Legal Maximum2004 6,251 284,094 120.9420%Frozen rate140.12%2005 6,251 367,427 114.2710%2006 6,251 373,187 107.2660%2007 6,251 389,343 107.1000%2008 6,251 393,840 103.0550%2009 6,251 384,561 107.8190%2010 6,251 381,976 112.2210%2011 6,251 371,625 121.8240%2012 6,251 365,198 130.7480%2013 6,147 336,856 133.1340%Cash Flow Projections0.00%10.00%NewTax Fiscal TaxInvest Debt Admin. OtherEndTIF Yr,MonthYearBaseTotalDevelopmentCapturedRateYearIncrementMVHCIncomeServiceExpenseExpensesBalance12.5 8/1 2010 6,251 381,976 - 375,725 112.2210%13 2/1 20112010 414,795 5,132 484 151,598 3,956 - 356,284 13.5 8/1 2011 6,251 371,625 - 365,374 121.8240%14 2/1 20122011 439,610 5,773 7,529 151,598 4,367 653,231 14.5 8/1 2012 6,251 365,198 - 358,947 130.7480%15 2/1 20132012 471,399 2,068 151,598 2,683 525,000 447,417 15.5 8/1 2013 6,147 336,856 - 330,709 133.1340%16 2/1 20142013 440,286 - 68,070 839 220,143 598,651 Total4,110,82462,049 1,441,952 127,314 1,980,797598,651Notes: (1) Balance returned to Hennepin County equaled $805,600. $410,700 was used for pooling.Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 25
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 25 Maximum amount 760,000.00$ Interest Rate 8.50%Note Issued Date 11/20/1996Final Payment 8/1/2013CumulativeTax IncrementPaid760,000.00$ 2/1/1997 12,920.00 - 772,920.00$ 8/1/1997 32,849.10 805,769.10$ 2/1/1998 34,245.19 840,014.29$ 8/1/1998 35,700.61 875,714.89$ 2/1/1999 37,217.88 - 912,932.78$ 8/1/1999 38,799.64 12,542.00 140.00 12,542.00 939,190.42$ 2/1/2000 39,915.59 12,542.00 140.00 25,084.00 966,564.01$ 8/1/2000 41,078.97 12,542.00 140.00 37,626.00 995,100.98$ 2/1/2001 42,291.79 12,542.00 140.00 50,168.00 1,024,850.78$ 8/1/2001 43,798.14 52,998.00 593.00 103,166.00 1,015,650.91$ 2/1/2002 43,165.16 52,998.00 593.00 156,164.00 1,005,818.08$ 8/1/2002 42,747.27 52,998.00 593.00 209,162.00 995,567.34$ 2/1/2003 42,311.61 52,998.00 593.00 262,160.00 984,880.96$ 8/1/2003 41,857.44 52,998.00 593.00 315,158.00 973,740.40$ 2/1/2004 41,383.97 52,998.00 593.00 368,156.00 962,126.36$ 8/1/2004 40,890.37 74,960.00 839.00 443,116.00 928,056.73$ 2/1/2005 39,442.41 74,960.00 839.00 518,076.00 892,539.14$ 8/1/200537,932.91 74,960.00 839.00 593,036.00 855,512.06$ 2/1/200636,359.26 74,960.00 839.00 667,996.00 816,911.32$ 8/1/200634,718.73 74,960.00 839.00 742,956.00 776,670.05$ 2/1/200733,008.48 74,960.00 839.00 817,916.00 734,718.53$ 8/1/200731,225.54 74,960.00 839.00 892,876.00 690,984.07$ 2/1/200829,366.82 74,960.00 839.00 967,836.00 645,390.89$ 8/1/200827,429.11 74,960.00 839.00 1,042,796.00 597,860.00$ 2/1/200925,409.05 74,960.00 839.00 1,117,756.00 548,309.05$ 8/1/200923,303.13 74,960.00 839.00 1,192,716.00 496,652.19$ 2/1/201021,107.72 74,960.00 839.00 1,267,676.00 442,799.91$ 8/1/201018,819.00 74,960.00 839.00 1,342,636.00 386,658.90$ 2/1/201116,433.00 74,960.00 839.00 1,417,596.00 328,131.90$ 8/1/201113,945.61 74,960.00 839.00 1,492,556.00 267,117.51$ 2/1/201211,352.49 74,960.00 839.00 1,567,516.00 203,510.00$ 8/1/20128,649.18 74,960.00 839.00 1,642,476.00 137,199.18$ 2/1/20135,830.97 74,960.00 839.00 1,717,436.00 68,070.15$ 8/1/20132,892.98 70,963.13 839.00 1,788,399.13 (0.00)$ TOTAL1,028,399.13 1,788,399.13 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - SVK DevelopmentDateInterest DueNote BalanceDeposit ReimburseTax Increment Available Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 26
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 26 Park Center Housing Description: Park Center TIF District (County #1304) is a housing district established on October 7, 1996 and is located within the Redevelopment Project No. 1. Originally, the district encompassed a portion of one parcel of land that was originally in the Excelsior Boulevard district. It was created to facilitate the development of 45 units of senior assisted living rental housing. This district was modified more recently to include additional parcels (which were replatted into one parcel) to allow for the construction of an additional 45 units of senior assisted living. Legislative change in 2001 eliminated the state aid penalty for this district. Increment was used to repay a $500,000 interfund loan for the Park Shores Assisted Living Project, which was paid off on September 30, 2003. On February 1, 2011 $500,000 was transferred out of the District to repay the GO Louisiana Court Bonds that were refinanced. With the Park Shores interfund loan being repaid, there is ample increment generated on an annual basis to utilize for other affordable housing initiatives within the constraints of the TIF Act. Adopted…………………………. 10/07/1996 Requested Date………………….. 12/19/1996 Certified Date………………….... 05/19/1997 First Increment……………………… 07/1998 Anticipated Decertification…….... 12/31/2023 Modifications………………….… 09/21/1999 01/16/2007 Former and Current PID Numbers: Former PID # New PID #New Use06-028-24-33-001706-028-24-33-002006-028-24-33-0022Park Shores Assisted LivingStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 27
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 27 Fiscal Disparities Election: The City elected to calculate fiscal disparities from outside (A election) the district. Frozen Tax Rate: 126.2470% Allowable Uses: MN Statute 469.176 subd. 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment must be spent public improvements directly related to housing projects and administrative expenses. Obligations: None. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Park Center Housing District met the requirement when the City issued an interfund loan from the Development Fund for the Park Shores Assisted Living project. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The Park Center Housing Four Year Rule was May 2001. Five Year Rule: At least 80% of tax increment revenues generated within Park Center Housing must be used to pay for qualified costs within the district. However, pursuant to MN Statute 469.1763 subd. 2 (b), activities for affordable housing projects spent in the project area is considered an activity within the district. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This timeline has passed for Park Center which was May 2002. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 28
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 28 Compliance Requirements: Income limitations are required to be monitored on an on-going basis for a Housing District. The Authority is required to substantiate that the applicable income limitations and rent restrictions are being met on an annual basis for rental. The compliance must be completed regardless of whether the project receives tax credits or not, pursuant to 469.174 sub 11. For both facilities, they have been submitting the required documentation on an annual basis and have continued to meet the requirement that 20% of the units are affordable to persons at or below 50% of the area median income. Recommendations: 1. Use of Increment. As of December 31, 2012, this District had a fund balance of approximately $1,282,500, and continues to generate approximately $100,000 annually. This increment may be used to pay eligible costs for “housing projects” as defined by MS 469.174, Subd. 11, located anywhere within the City limits. A housing project is a rental or owner-occupied housing development intended for occupancy by low and moderate income families. The income guidelines are defined in MS 469.1761 as follows: Rental Housing: 20% of the units occupied by families at 50% of median income (20/50) or 40% of the units occupied by families at 60% of median income (40/60). Owner Occupied: Assistance to homeowner’s with an income at or below 100% of the median income for a family of two or less or 115% of the median income for a family of three or more. Typically TIF is utilized for capital expenditures, but may be used for non-capital expenditures on a limited basis. Examples of potential rental housing projects would include: 1. New affordable rental housing as part of redevelopment (20/50 or 40/60 election) 2. Renovation of an existing rental housing development (20/50 or 40/60 election) 3. Providing subsidy to an existing project that is earmarked for additional affordability (20/50 or 40/60 election) Examples of potential owner-occupied projects would include: 1. Site acquisition and demolition for infill lots that will be sold for new housing construction 2. Acquisition of foreclosed homes for resale to income qualified buyers 3. Rehabilitation loans for home improvements (including HIA owners) 4. Second mortgages to qualified home buyers Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 29
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 29 In order for the City to continue to utilize these funds for housing projects, the development is required to continue to meet income guidelines and report them annually to the City. There were three possible tenant income requirements for this rental housing: (i) 20% of the units affordable to persons at or below 50% of the AMI; (ii) 40% of the units affordable to persons at or below 60% of the AMI; or (iii) 50% of the units affordable to persons at or below 80% of the AMI. The Development Agreement did not specify which of these requirements must be met. This means that the Developer has some flexibility as to income requirements, but must meet at least one of these income requirements on an annual basis for the duration of the TIF District. The City needs to annually monitor the income verification to assure that one of the above referenced requirements is met. If the income requirements are not met on any given year, then the City will need to return that year’s increment to the County for redistribution. 2. Plan for Use of Increment. The City should develop a formalized plan for the existing fund balance and to utilize the annual increment for housing related projects.Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 30
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 30 City of St. Louis ParkPark Center TIF DistrictBasic AssumptionsOption A District: 1304Inflation Rate0.00%Assumes Last Increment In2023 Legal MaximumBaseTotalTax RateFrozen Rate126.2472004 8,360 121,320 120.9420%2005 8,360 121,320 114.2710%2006 8,360 119,375 107.2660%2007 8,360 122,255 107.1000%2008 8,360 123,988 103.0550%2009 8,360 123,988 107.8190%2010 8,360 99,388 112.2210%2011 8,360 94,413 121.8240%2012 8,360 94,413 130.7480%2013 8,360 94,413 133.1340%Cash Flow Projections0.00%10.00%NewTax Fiscal Tax Other Invest Debt Admin. OtherEndTIF Yr,MonthYearBaseTotalDevelopmentCapturedRateYearIncrementRevenueIncomeServiceExpenseExpensesBalance12.5 8/1 2010 8,360 99,388 - 91,028 112.2210%13 2/1 20112010 101,785 140,302 12,012 4,451 1,021,010 13.5 8/1 2011 8,360 94,413 - 86,053 121.8240%14 2/1 20122011 104,456 4,999 4,625 450,000 675,840 14.5 8/1 2012 8,360 94,413 - 86,053 126.2470%15 2/1 20132012 108,249 500,000 224 1,832 1,282,481 15.5 8/1 2013 8,360 94,413 - 86,053 126.2470%16 2/1 20142013 108,639 - 10,864 500,000 880,256 16.5 8/1 2014 8,360 94,413 - 86,053 126.2470%17 2/1 20152014 108,639 - 10,864 185,000 793,032 17.5 8/1 2015 8,360 94,413 - 86,053 126.2470%18 2/1 20162015 108,639 - 10,864 185,000 705,807 18.5 8/1 2016 8,360 94,413 - 86,053 126.2470%19 2/1 20172016 108,639 - 10,864 185,000 618,582 19.5 8/1 2017 8,360 94,413 - 86,053 126.2470%20 2/1 20182017 108,639 - 10,864 185,000 531,358 20.5 8/1 2018 8,360 94,413 - 86,053 126.2470%21 2/1 20192018108,639 - 10,864 185,000 444,133 21.5 8/1 2019 8,360 94,413 - 86,053 126.2470%22 2/1 20202019 108,639 - 10,864 185,000 356,909 22.5 8/1 2020 8,360 94,413 - 86,053 126.2470%23 2/1 20212020 108,639 - 10,864 185,000 269,684 23.5 8/1 2021 8,360 94,413 - 86,053 126.2470%24 2/1 20222021 108,639 - 10,864 185,000 182,459 24.5 8/1 2022 8,360 94,413 - 86,053 126.2470%25 2/1 20232022 108,639 - 10,864 185,000 95,235 25.5 8/1 2023 8,360 94,413 - 86,053 126.2470%26 2/1 20242023 108,639 - 10,864 185,000 8,010 Total2,257,409114,2630 170,890 2,931,1008,010Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 31
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 31 Zarthan Avenue/16th Street Description: Zarthan Avenue/16th Street TIF District (County #1305 and #1306) is a redevelopment district established on December 20, 1999 and located within Redevelopment Project No. 1. Originally, the district encompassed twelve parcels of land and was created to facilitate the development of two hotels and 86 townhome units just south I-394. The EDA has pledged tax increment revenues from this district to three PAYGO notes, which are all held by CSM. The property tax reform of 2001 hit this development particularly hard. Currently, tax increment income is less than the annual interest payments on the notes. The notes contain pledges from three properties. The Rottlund note covers 86 owner-occupied townhomes. These tax capacities dropped by 25% back in 2001. Due to the reallocation of the market value homestead credit to market value homestead exclusion in 2011, the tax capacities dropped. The remaining two notes are supported by increments from two hotels. The tax-capacities on these properties dropped by 40% in 2001, but the actual tax savings was significantly less than that amount. Assuming no change in the local tax rate, the larger of the two hotels would have seen a property tax savings of $115,000 per year but the new statewide property tax substituted a new tax for $75,000 of the savings. The state property tax is not captured by TIF and is therefore a net loss to the note holder. CSM had approached the City after the 2001 legislative changes asking for future consideration through several potential actions such as a change in the interest rate on the notes, the extension of the term of the district, pooling among the notes, a change in the fiscal disparities election in the district, lifting of the frozen tax rate, and/or pooling from other districts. No action was taken on that request. Adopted………………………. 12/20/1999 Requested Date……………….. 01/28/2000 Certified Date………………… 05/09/2000 First Increment………………… 07/2001 Anticipated Decertification…... 12/31/2023 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 32
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 32 Former and Current PID Numbers: Former PID # New PID #New Use130504-117-21-32-000804-117-21-32-0094Rottlund Master Parcel04-117-21-32-006604-117-21-32-0088Spring Hill Suites04-117-21-32-0102 thru 013304-117-21-32-0168 thru 018304-117-21-32-0102 thru 013304-117-21-32-0168 thru 018304-117-21-32-0088Spring Hill Suites04-117-21-32-0089Town Place Suites130604-117-21-32-000904-117-21-32-001004-117-21-32-001104-117-21-32-001204-117-21-32-001304-117-21-32-001404-117-21-32-001504-117-21-32-001604-117-21-32-0150 thru 167 and 04-117-21-32-0185 thru 20438 Rottlund Town Homes48 Rottlund Town Homes04-117-21-32-007904-117-21-32-0078 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: The parcels in this district cross over two watershed district. The county has assigned two numbers to correspond with the different watershed rates. 143.7690% (co #1305) 144.2940% (co #1306) Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 33
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 33 Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There are three (3) PAYGO TIF Note obligations for this district as follows: Note #1: CSM Hospitality (Town Place Suites) in the amount of $1,101,362 at 8.0% and is payable from 8/1/2002 to 2/1/2022 Note #2: CSM Hospitality (Spring Hill Suites) in the amount of $1,448,088 at 8.0% and is payable from 8/1/2002 to 2/1/2022 Note #3: The Rottlund Company in the amount of $1,395,547 at 8.0% and is payable from 8/1/2003 to 2/1/2023 Due to legislative changes to tax rates in 2001 and reallocation of the market value homestead credit to a market value homestead exclusion in 2011, it is anticipated that payments will be made on these notes through the duration stated above and that there will not be adequate TIF to pay off the obligations. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Zarthan district met the requirement when the City authorized the issuance of the notes in 2000. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. The Zarthan district Four Year Rule deadline was May, 2004. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 34
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 34 Five Year Rule: At least 75% of tax increment revenues must be used to pay for qualified costs within the district. Statute further specifies that within five years, tax increment must actually be paid for activities, bonds issued, contracts entered into in order for revenues to be considered to have been spent. The five year deadline was May 2005. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. This district may not be enlarged after May 2005. Recommendations: 1. Pooling Analysis and Use of Funds. Currently there is approximately $275,000 in the District for use on redevelopment projects, which represents estimated cash balances at 2/1/2013 after the obligation payments are made. It is estimated that there will be approximately $1,000,000 available for use when the obligations are paid in 2023. We recommend that the City update its pooling analysis and develop a plan for use of these funds. If no pooling is completed, the balance will have to be returned either when the district expires or when the obligation is paid. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 35
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 35 City of St. Louis ParkZarthan/16th Avenue TIF DistrictBasic AssumptionsOption B District: 1305/1306Inflation Rate 0.00%Assumes Last Increment In 2023 Expected TermBaseTotalTax Rate2026 Legal Maximum2004 74,615 396,142 120.9420%Frozen rate143.7692005 74,615 427,968 113.3370%2006 74,615 453,346 106.6220%2007 74,615 498,047 106.0960%2008 74,615 516,701 102.3020%2009 74,615 505,462 106.8650%2010 74,615 491,121 111.3700%2011 74,615 425,317 120.8830%2012 74,615 424,452 130.7480%2013 72,212 420,194 132.2090%Cash Flow Projections0.00%10.00%FiscalTax Fiscal Tax Other Invest CSM CSM CSM Admin. EndTIF Yr,MonthYearBaseTotalDisparityCapturedRateYearIncrementRevenueIncomeNote 1Note 2Note 3ExpenseBalance2,135,848 9.5 8/1 2010 74,615 491,121 (61,940) 354,566 111.3700%10 2/1 20112010 394,342 1,601 71,448 90,697 182,840 7,552 372,542 10.5 8/1 2011 74,615 425,317 (56,953) 293,749 120.8830%11 2/1 20122011 354,608 4,038 67,074 85,246 176,107 8,646 394,115 11.5 8/1 2012 74,615 424,452 (61,303) 288,534 130.7480%12 2/1 20132012 373,768 2,866 68,977 87,934 169,463 3,869 440,507 12.5 8/1 2013 72,212 420,194 (59,813) 288,169 132.2090%13 2/1 20142013 387,977 - 71,530 92,285 164,808 38,798 461,063 13.5 8/1 2014 72,212 420,194 (59,813) 288,169 132.2090%14 2/1 20152014 387,977 - 69,800 90,892 170,220 38,798 479,330 14.5 8/1 2015 72,212 420,194 (59,813) 288,169 132.2090%15 2/1 20162015 387,977 - 69,800 90,892 170,220 38,798 497,598 15.5 8/1 2016 72,212 420,194 (59,813) 288,169 132.2090%16 2/1 20172016 387,977 - 69,800 90,892 170,220 38,798 515,865 16.5 8/1 2017 72,212 420,194 (59,813) 288,169 132.2090%17 2/1 20182017 387,977 - 69,800 90,892 170,220 38,798 534,132 17.5 8/1 2018 72,212 420,194 (59,813) 288,169 132.2090%18 2/1 20192018 387,977 - 69,800 90,892 170,220 38,798 552,400 18.5 8/1 2019 72,212 420,194 (59,813) 288,169 132.2090%19 2/1 20202019 387,977 - 69,800 90,892 170,220 38,798 570,667 19.5 8/1 2020 72,212 420,194 (59,813) 288,169 132.2090%20 2/1 20212020 387,977 - 69,800 90,892 170,220 38,798 588,935 20.5 8/1 2021 72,212 420,194 (59,813) 288,169 132.2090%21 2/1 20222021 387,977 - 69,800 90,892 170,220 38,798 607,202 21.5 8/1 2022 72,212 420,194 (59,813) 288,169 132.2090%22 2/1 20232022 387,977 - 34,900 45,446 170,220 38,798 705,816 22.5 8/1 2023 72,212 420,194 (59,813) 288,169 132.2090%23 2/1 20242023 387,977 - - - 85,110 38,798 969,885 23.5 8/1 2024 72,212 420,194 (59,813) 288,169 132.2090%242/1 20252024- - 969,885 24.5 8/1 2025 72,212 420,194 (59,813) 288,169 132.2090%25 2/1 20262025 - - - 969,885 25.5 8/1 2026 72,212 420,194 (59,813) 288,169 132.2090%26 2/1 20272026 - - - 969,885 Total7,618,49321,647 1,345,432 1,741,374 3,235,891 554,378 969,885Tax CapacityStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 36
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 36 Maximum amount 1,101,362.00$ Interest Rate 8.00%PID 04-117-21-32-0089Note Issue Date 10/25/2000Final Payment 2/1/2022Total Tax Tax Increment CumulativeIncrement Available at Tax IncrementDate Interest DueAvailable 89.75%PaidNote Balance1,101,362.00$ 2/1/200123,985.22 - - 1,125,347.22$ 8/1/200145,263.97 - - 1,170,611.18$ 2/1/200247,864.99 - - 1,218,476.17$ 8/1/200249,009.82 250.50 224.82 224.82 1,267,261.17$ 2/1/200349,812.94 81.40 73.06 297.88 1,317,001.06$ 8/1/200348,997.84 38,221.42 34,303.72 34,601.60 1,331,695.17$ 2/1/200448,407.32 38,221.42 34,303.72 68,905.32 1,345,798.77$ 8/1/200446,493.75 39,572.30 35,516.13 104,421.46 1,356,776.39$ 2/1/200545,552.46 39,572.30 35,516.13 139,937.59 1,366,812.71$ 8/1/200543,381.22 38,532.90 34,583.28 174,520.87 1,375,610.65$ 2/1/200642,686.17 38,532.90 34,583.28 209,104.15 1,383,713.55$ 8/1/200640,599.19 39,012.16 35,013.41 244,117.56 1,389,299.32$ 2/1/200739,840.44 39,012.16 35,013.41 279,130.97 1,394,126.35$ 8/1/200737,782.55 43,747.32 39,263.22 318,394.19 1,392,645.68$ 2/1/200836,803.35 43,747.32 39,263.22 357,657.41 1,390,185.81$ 8/1/200834,815.34 44,037.92 39,524.03 397,181.45 1,385,477.12$ 2/1/200933,581.83 44,037.91 39,524.02 436,705.47 1,379,534.92$ 8/1/200955,181.40 40,554.61 36,397.76 473,103.23 1,398,318.56$ 2/1/201057,175.69 40,554.61 36,397.76 509,500.99 1,419,096.49$ 8/1/201057,079.21 39,053.54 35,050.55 544,551.54 1,441,125.15$ 2/1/201158,926.01 39,053.54 35,050.55 579,602.10 1,465,000.60$ 8/1/201158,925.58 35,680.39 32,023.15 611,625.25 1,491,903.03$ 2/1/201261,002.26 35,680.39 32,023.15 643,648.40 1,520,882.14$ 8/1/201261,511.23 41,174.33 36,953.96 680,602.35 1,545,439.42$ 2/1/201363,191.30 41,174.33 36,629.70 717,232.05 1,572,001.02$ 8/1/201363,229.37 41,174.33 36,953.96 754,186.01 1,598,276.44$ 2/1/201465,351.75 41,174.33 36,953.96 791,139.97 1,626,674.23$ 8/1/201465,428.45 41,174.33 36,953.96 828,093.92 1,655,148.72$ 2/1/201567,677.19 41,174.33 36,953.96 865,047.88 1,685,871.96$ 8/1/201567,809.52 41,174.33 36,953.96 902,001.84 1,716,727.52$ 2/1/201670,195.08 41,174.33 36,953.96 938,955.79 1,749,968.64$ 8/1/201670,776.51 41,174.33 36,953.96 975,909.75 1,783,791.19$ 2/1/201772,937.24 41,174.33 36,953.96 1,012,863.71 1,819,774.48$ 8/1/201773,195.37 41,174.33 36,953.96 1,049,817.67 1,856,015.89$ 2/1/201875,890.43 41,174.33 36,953.96 1,086,771.62 1,894,952.36$ 8/1/201876,219.20 41,174.33 36,953.96 1,123,725.58 1,934,217.60$ 2/1/201979,088.01 41,174.33 36,953.96 1,160,679.54 1,976,351.65$ 8/1/201979,493.26 41,174.33 36,953.96 1,197,633.49 2,018,890.95$ 2/1/202082,550.21 41,174.33 36,953.96 1,234,587.45 2,064,487.20$ 8/1/202083,497.04 41,174.33 36,953.96 1,271,541.41 2,111,030.28$ 2/1/202186,317.68 41,174.33 36,953.96 1,308,495.37 2,160,394.01$ 8/1/202186,895.85 41,174.33 36,953.96 1,345,449.32 2,210,335.90$ 2/1/202290,378.18 41,174.33 36,953.96 1,382,403.28 2,263,760.12$ TOTAL2,520,816.18 1,540,643.50 1,382,403.28 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Rottlund Note 1CSM - Town Place Suites Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 37
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 37 Maximum amount 1,448,088.00$ Interest Rate 8.00%PID 04-117-21-32-0088Note Issue Date 10/25/2000Final Payment Date 2/1/2022Total Tax Tax Increment CumulativeIncrement Available at Tax IncrementDate Interest DueAvailable 89.75%PaidNote Balance1,448,088.00$ 2/1/200131,536.14 - - 1,479,624.14$ 8/1/200159,513.77 - - 1,539,137.91$ 2/1/200262,933.64 - - 1,602,071.55$ 8/1/200264,438.88 - - 1,666,510.43$ 2/1/200365,506.93 - - 1,732,017.35$ 8/1/200364,438.88 50,830.11 45,620.02 45,620.02 1,750,836.21$ 2/1/200463,641.57 50,830.10 45,620.02 91,240.04 1,768,857.76$ 8/1/200461,104.74 51,958.61 46,632.86 137,872.89 1,783,329.65$ 2/1/200559,869.46 51,958.61 46,632.86 184,505.75 1,796,566.25$ 8/1/200557,017.65 50,204.53 45,058.57 229,564.32 1,808,525.33$ 2/1/200656,120.30 50,204.54 45,058.58 274,622.89 1,819,587.05$ 8/1/200653,392.93 50,011.01 44,884.88 319,507.77 1,828,095.10$ 2/1/200752,442.61 50,011.02 44,884.89 364,392.66 1,835,652.82$ 8/1/200749,782.20 56,109.04 50,357.86 414,750.52 1,835,077.16$ 2/1/200848,548.24 56,109.04 50,357.86 465,108.39 1,833,267.53$ 8/1/200845,983.84 56,434.67 50,650.12 515,758.50 1,828,601.26$ 2/1/200944,418.13 56,434.66 50,650.11 566,408.61 1,822,369.28$ 8/1/200972,894.77 51,499.90 46,221.16 612,629.77 1,849,042.89$ 2/1/201075,605.31 51,499.90 46,221.16 658,850.93 1,878,427.04$ 8/1/201075,554.51 49,555.54 44,476.10 703,327.03 1,909,505.45$ 2/1/201178,077.56 49,555.54 44,476.10 747,803.13 1,943,106.92$ 8/1/201178,156.08 45,426.29 40,770.09 788,573.22 1,980,492.90$ 2/1/201280,980.15 45,426.29 40,770.09 829,343.31 2,020,702.96$ 8/1/201281,726.21 52,549.92 47,163.56 876,506.87 2,055,265.61$ 2/1/201384,037.53 52,549.92 46,839.30 923,346.17 2,092,463.84$ 8/1/201384,163.55 50,636.23 45,446.01 968,792.18 2,131,181.38$ 2/1/201487,141.64 50,636.23 45,446.01 1,014,238.19 2,172,877.00$ 8/1/201487,397.94 50,636.23 45,446.01 1,059,684.20 2,214,828.93$ 2/1/201590,561.89 50,636.23 45,446.01 1,105,130.22 2,259,944.81$ 8/1/201590,900.00 50,636.23 45,446.01 1,150,576.23 2,305,398.80$ 2/1/201694,265.20 50,636.23 45,446.01 1,196,022.24 2,354,217.99$ 8/1/201695,215.04 50,636.23 45,446.01 1,241,468.26 2,403,987.01$ 2/1/201798,296.36 50,636.23 45,446.01 1,286,914.27 2,456,837.36$ 8/1/201798,819.46 50,636.23 45,446.01 1,332,360.28 2,510,210.80$ 2/1/2018102,639.73 50,636.23 45,446.01 1,377,806.29 2,567,404.52$ 8/1/2018103,266.72 50,636.23 45,446.01 1,423,252.31 2,625,225.22$ 2/1/2019107,342.54 50,636.23 45,446.01 1,468,698.32 2,687,121.75$ 8/1/2019108,082.01 50,636.23 45,446.01 1,514,144.33 2,749,757.75$ 2/1/2020112,434.54 50,636.23 45,446.01 1,559,590.35 2,816,746.27$ 8/1/2020113,921.74 50,636.23 45,446.01 1,605,036.36 2,885,222.00$ 2/1/2021117,973.52 50,636.23 45,446.01 1,650,482.37 2,957,749.51$ 8/1/2021118,967.26 50,636.23 45,446.01 1,695,928.38 3,031,270.75$ 2/1/2022123,945.29 50,636.23 45,446.01 1,741,374.40 3,109,770.03$ TOTAL3,371,520.29 1,940,611.32 1,741,374.40 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Rottlund Note 2CSM - Spring Hill Suites Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 38
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 38 Maximum amount 1,395,547.00$ Interest Rate 8.00%Note Issue Date 11/6/2000Last Payment 2/1/2023Total Tax Tax Increment CumulativeIncrement Available at Tax IncrementDateInterest DueAvailable 89.75%PaidNote Balance1,395,547.00$ 2/1/200126,670.45 - - - 1,422,217.45$ 8/1/200157,204.75 - - - 1,479,422.20$ 2/1/200260,491.93 - - - 1,539,914.13$ 8/1/200261,938.77 - - - 1,601,852.90$ 2/1/200365,497.99 - - - 1,667,350.88$ 8/1/200367,064.56 27,594.83 24,766.36 24,766.36 1,709,649.08$ 2/1/200467,163.46 28,542.43 25,616.83 50,383.19 1,751,195.71$ 8/1/200465,397.36 82,498.75 74,042.63 124,425.82 1,742,550.44$ 1/25/200561,031.26 718.79 645.11 125,070.93 1,802,936.59$ 2/1/20052,056.37 81,365.77 73,025.78 198,096.71 1,731,967.18$ 8/1/200559,096.67 82,514.75 74,702.10 272,798.81 1,716,361.75$ 2/2/200657,021.68 92,166.77 82,719.67 355,518.48 1,690,663.76$ 8/1/200652,764.81 85,454.01 76,694.98 432,213.46 1,666,733.60$ 2/2/200750,503.40 90,591.69 81,306.04 513,519.50 1,635,930.95$ 8/1/200746,409.66 94,710.03 85,002.25 598,521.75 1,597,338.36$ 2/2/200843,703.24 97,981.73 87,938.60 686,460.35 1,553,103.00$ 8/1/200839,671.57 94,093.64 84,449.04 770,909.40 1,508,325.53$ 2/1/200936,654.50 97,773.07 87,751.33 858,660.73 1,457,228.69$ 8/1/200958,289.15 98,295.05 88,219.81 946,880.53 1,427,298.03$ 2/1/201058,360.63 98,295.05 88,219.81 1,035,100.34 1,397,438.86$ 8/1/201056,208.10 105,426.67 94,620.43 1,129,720.77 1,359,026.52$ 2/1/201155,569.08 100,915.94 90,572.05 1,220,292.83 1,324,023.55$ 8/1/201153,255.17 100,467.26 85,534.87 1,305,427.19 1,292,144.35$ 2/1/201252,834.35 91,896.12 83,039.44 1,387,903.96 1,262,501.94$ 8/1/201251,061.19 96,293.48 86,423.33 1,474,327.29 1,227,139.79$ 2/1/201350,176.38 88,800.37 79,698.33 1,554,025.62 1,197,617.85$ 8/1/201348,170.85 94,830.00 85,109.93 1,639,135.55 1,160,678.77$ 2/1/201447,458.87 94,830.00 85,109.93 1,724,245.47 1,123,027.71$ 8/1/201445,170.67 94,830.00 85,109.93 1,809,355.40 1,083,088.45$ 2/1/201544,286.28 94,830.00 85,109.93 1,894,465.33 1,042,264.81$ 8/1/201541,922.21 94,830.00 85,109.93 1,979,575.25 999,077.09$ 2/1/201640,851.15 94,830.00 85,109.93 2,064,685.18 954,818.32$ 8/1/201638,617.10 94,830.00 85,109.93 2,149,795.11 908,325.49$ 2/1/201737,140.42 94,830.00 85,109.93 2,234,905.03 860,355.98$ 8/1/201734,605.43 94,830.00 85,109.93 2,320,014.96 809,851.49$ 2/1/201833,113.93 94,830.00 85,109.93 2,405,124.88 757,855.49$ 8/1/201830,482.63 94,830.00 85,109.93 2,490,234.81 703,228.19$ 2/1/201928,754.22 94,830.00 85,109.93 2,575,344.74 646,872.49$ 8/1/201926,018.65 94,830.00 85,109.93 2,660,454.66 587,781.21$ 2/1/202024,033.72 94,830.00 85,109.93 2,745,564.59 526,705.00$ 8/1/202021,302.29 94,830.00 85,109.93 2,830,674.51 462,897.37$ 2/1/202118,927.36 94,830.00 85,109.93 2,915,784.44 396,714.80$ 8/1/202115,956.75 94,830.00 85,109.93 3,000,894.37 327,561.63$ 2/1/202213,393.63 94,830.00 85,109.93 3,086,004.29 255,845.33$ 8/1/202210,290.67 94,830.00 85,109.93 3,171,114.22 181,026.07$ 2/1/20237,401.95 94,830.00 85,109.93 3,256,224.14 103,318.10$ TOTAL1,919,632.17 3,443,336.21 3,086,967.47 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Rottlund Note 3Rottlund - 86 Town Homes/Condos Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 39
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 39 Mill City Description: Mill City TIF District (County #1307) is a redevelopment district established on March 20, 2000, and is located within the Redevelopment Project No. 1. Originally, the district was established with two (2) parcels to facilitate the redevelopment of a polluted site and construction of a multi-family rental housing development. Rental housing class rates were reduced dramatically by the 2001 legislature from 2.4% to 1.25%. Projected increment when the note was sized was expected to be $394,188 per year beginning in 2003, which is substantially less than the current annual tax increment. However, the drop in increment also means a drop in taxes paid by the owner. Therefore, the effect upon the rental housing development should be neutral for the owner because rental housing pays no state property tax (tax obligated for the State’s education system). In 2011, The City utilized $70,000 from this district to pay for project costs for the Bikemasters project through the City’s CAP program. These funds were spent under the JOBS Bill authorized by the legislature in 2009 and extended in the 2010 legislative session. Use of these dollars under the special legislative authority are exempt from the standard pooling limitations of the District. Adopted…………………..….…. 03/20/2000 Requested Date…………….….... 06/08/2000 Certified Date……………………06/19/2000 First Increment……..……….…… 07/2001 Anticipated Decertification...……12/31/2018 Former and Current PID Numbers: Former PID # Former UseNew PID #New Use17-117-21-31-0012 Vacant Land17-117-21-42-0094City Vacant Land17-117-21-34-0082 Mill City Plywood17-117-21-34-0087Mill City ApartmentsStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 40
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 40 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 144.2940% Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is currently one PAYGO Note in this district as follows: $3,431,137 at 8.75% interest. The Note was issued on November 20, 2000 to MSP SLP Apartments, LLC. The note is payable from 94.75% of the increment received on the project. After the 2/1/2013 payment, the current balance is $5,753,532 and the projected final payment is on February 1, 2019, subject to the terms of the TIF Note as described below. It is expected the Note will not be paid in full due to tax rate compression. Other Development Agreement Compliance: 1. TIF Note. If the following conditions exist: (1) the Redevelopment Property is assigned an assessor's market value as of January 2, 2001 that exceeds the market value as of January 2, 2000; and (2) there is any unpaid principal or accrued interest on this Note after the payment of available Tax Increment on February 1, 2019, then payments will be made on August 1, 2019 and February 1, 2020. On the Additional Payment Dates, the Authority will pay the lesser of (i) the outstanding principal and accrued interest on the Note, and (ii) the Available Tax Increment that is attributable to the Differential Value and is received by the Authority in the six months before each Additional Payment Date. The term "Differential Value" means amount by which the minimum market value in the Assessment Agreement for the Redevelopment Property exceeds the assessor's estimated market value for that property as of January 2, 2001. 1. Minimum Assessment Agreement. The minimum market value as of January 2, 2002 shall be $13,400,000. The Assessment Agreement shall be in place until the TIF Note is paid in full or the TIF District terminates, whichever is sooner. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 41
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 41 Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. Mill City met the requirement when the City approved the Development Agreement with MSP SLP Apartments LLC on April 3, 2000. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The Mill City Four Year Rule was deadline was June 2004. Five Year Rule: At least 75% of tax increment revenues generated within the Mill City district must be used to pay for qualified costs within the district. The five year deadline was June 2005. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after June 2005. Recommendations: 1. Existing Obligations. The duration of this district will extend beyond the obligation date. We recommend that staff discuss the goal of the District, which could be to decertify as early as possible or to continue the operation of the district to allow for pooling for other projects. If the latter is preferred, the City could discuss with the Developer the possibility of extending the obligation through the term of the District 2. Pooling Analysis and Use of Funds. Currently there is approximately $59,000 of cash available after the 2/1/2013 payments for projects and it is estimated that there will be approximately $59,000 available at the end of the District. We recommend that the City update its pooling analysis and develop a plan for use of these funds. If no pooling is completed, the balance will have to be returned either when the district expires or when the obligation is paid. 3. TIF Note. Review market value as of January 1, 2000 and January 1, 2001 to see if the TIF Note will need to be extended by 1 year (to 2020). Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 42
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 42 City of St. Louis ParkMill City TIF DistrictBasic AssumptionsOption B District:1307Inflation Rate0.00%Assumes Last Increment In2018 Expected termBaseTotalTax Rate2026 Legal max term2004 16,488 229,800 120.9420%Frozen rate144.2942005 16,488 223,550 114.2710%2006 12,924 212,500 107.2660%2007 12,924 215,023 107.1000%Cash Flow Projections2008 12,924 220,000 103.0550%2009 12,924 220,000 107.8190%2010 12,924 220,000 112.2210%2011 12,924 215,000 121.8240%2012 12,674 215,000 130.7480%2013 12,674 250,000 133.1340%0.00%5.25%FiscalTax Fiscal Tax Other Invest Debt Admin. OtherEndTIF Yr,MonthYearBaseTotalDisparitiesCapturedRateYearIncrementRevenueIncomeServiceExpenseExpensesBalance9.5 8/1 2010 12,924 220,000 207,076 112.2210%10 2/1 20112010 231,546 944 215,087 5,437 - 218,913 10.5 8/1 2011 12,924 215,000 202,076 121.8240%11 2/1 20122011 245,291 1,526 225,902 6,069 70,000 163,760 11.5 8/1 2012 12,674 215,000 202,326 130.7480%12 2/1 20132012 263,584 570 241,080 3,369 - 183,465 12.5 8/1 2013 12,674 250,000 237,326 133.1340%13 2/1 20142013 315,962 - 274,560 16,588 - 208,279 13.5 8/1 2014 12,674 250,000 237,326 133.1340%14 2/1 20152014 315,962 - 299,373 16,588 - 208,279 14.5 8/1 2015 12,674 250,000 237,326 133.1340%15 2/1 20162015 315,962 - 299,373 16,588 - 208,280 15.5 8/1 2016 12,674 250,000 237,326 133.1340%16 2/1 20172016 315,962 - 299,373 16,588 - 208,281 16.5 8/1 2017 12,674 250,000 237,326 133.1340%17 2/1 20182017 315,962 - 299,373 16,588 - 208,281 17.5 8/1 2018 12,674 250,000 237,326 133.1340%18 2/1 20192018 315,962 - 299,373 16,588 - 208,282 18.5 8/1 2019 12,674 250,000 237,326 133.1340%19 2/1 20202019- 149,687 - - 58,595 19.5 8/1 2020 12,674 250,000 237,326 133.1340%20 2/1 20212020 - - - - - 58,595 20.5 8/1 2021 12,674 250,000 237,326 133.1340%21 2/1 20222021 - - - - - 58,595 21.5 8/1 2022 12,674 250,000 237,326 133.1340%22 2/1 20232022 - - - 58,595 22.5 8/1 2023 12,674 250,000 237,326 133.1340%23 2/1 20242023 - - - 58,595 23.5 8/1 2024 12,674 250,000 237,326 133.1340%24 2/1 20252024 - - - 58,595 24.5 8/1 2025 12,674 250,000 237,326 133.1340%25 2/1 20262025 - - - 58,595 25.5 8/1 2026 12,674 250,000 237,326 133.1340%26 2/1 20272026 - - - 58,595 Total4,225,985 6,293 25,331 4,009,857 154,02876,29358,595Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 43
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 43 Maximum amount 3,431,137.00$ Interest Rate 8.75%Note Issued Date 11/20/2000Final Payment 2/1/2019Total Tax Tax Increment CumualtiveIncrement Available at Tax IncrementDate Interest DueAvailable 94.75%PaidNote Balance7/31/2001- 3,431,137.00$ 8/1/2002300,224.49 3,026.74 2,867.84 2,867.84 3,728,493.65$ 2/1/2003163,121.60 3,026.74 2,867.84 5,735.67 3,888,747.41$ 3/3/2003- - - 5,735.67 3,888,747.41$ 8/1/2003170,132.70 116,456.43 110,342.47 116,078.14 3,948,537.64$ 2/1/2004172,748.52 116,456.44 110,342.48 226,420.62 4,010,943.69$ 8/1/2004175,478.79 128,527.49 121,779.80 348,200.41 4,064,642.68$ 12/1/2004118,876.88 128,527.49 121,779.80 469,980.21 4,183,519.56$ 1/1/2005- - - 469,980.21 4,183,519.56$ 2/1/200562,179.71 - - 469,980.21 4,123,919.47$ 8/1/2005180,421.48 117,879.53 111,690.85 581,671.06 4,192,650.11$ 2/1/2006183,428.44 117,876.64 111,688.12 693,359.18 4,264,390.44$ 8/1/2006186,567.08 106,653.00 101,057.00 794,416.18 4,349,903.80$ 2/1/2007190,308.29 107,834.00 101,054.00 895,470.18 4,439,158.26$ 8/1/2007194,213.17 107,834.00 102,172.72 997,642.90 4,531,198.86$ 2/1/2008198,239.95 106,701.09 102,172.00 1,099,814.90 4,627,266.23$ 8/1/2008202,442.90 106,701.09 100,735.00 1,200,549.90 4,728,974.29$ 2/1/2009206,892.62 106,701.09 100,734.84 1,301,284.74 4,835,132.07$ 8/1/2009211,537.03 111,231.76 105,392.09 1,406,676.83 4,941,277.01$ 2/1/2010216,180.87 111,231.76 105,392.09 1,512,068.92 5,052,065.78$ 8/1/2010222,255.81 115,773.09 109,695.00 1,621,763.92 5,164,626.59$ 2/1/2011225,952.41 115,773.09 109,695.00 1,731,458.92 5,280,884.00$ 8/1/2011 231,038.68 122,645.41 116,206.53 1,847,665.45 5,395,716.15$ 2/1/2012236,062.58 122,645.41 116,206.53 1,963,871.98 5,515,572.20$ 8/1/2012241,306.28 131,792.27 124,873.18 2,088,745.16 5,632,005.31$ 2/1/2013246,400.23 131,792.27 124,873.17 2,213,618.33 5,753,532.37$ 8/1/2013 251,717.04 157,980.50 149,686.52 2,363,304.85 5,855,562.89$ 2/1/2014 256,180.88 157,980.50 149,686.52 2,512,991.38 5,962,057.24$ 8/1/2014 260,840.00 157,980.50 149,686.52 2,662,677.90 6,073,210.72$ 2/1/2015 265,702.97 157,980.50 149,686.52 2,812,364.43 6,189,227.17$ 8/1/2015 270,778.69 157,980.50 149,686.52 2,962,050.95 6,310,319.33$ 2/1/2016 276,076.47 157,980.50 149,686.52 3,111,737.47 6,436,709.28$ 8/1/2016 281,606.03 157,980.50 149,686.52 3,261,424.00 6,568,628.78$ 2/1/2017 287,377.51 157,980.50 149,686.52 3,411,110.52 6,706,319.77$ 8/1/2017 293,401.49 157,980.50 149,686.52 3,560,797.04 6,850,034.74$ 2/1/2018 299,689.02 157,980.50 149,686.52 3,710,483.57 7,000,037.23$ 8/1/2018 306,251.63 157,980.50 149,686.52 3,860,170.09 7,156,602.34$ 2/1/2019 313,101.35 157,980.50 149,686.52 4,009,856.62 7,320,017.17$ TOTAL 7,898,733.59 4,232,852.83 4,009,856.62 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - MSP SLP Apartments, LLC Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 44
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 44 Park Commons Description: Park Commons TIF District (County #1308) is a redevelopment district established on January 16, 2001 and is located within the Redevelopment Project No 1. Originally, the district encompassed 38 parcels of land, most of which were in the Excelsior Boulevard District and was established to facilitate the construction of mixed use housing and retail facilities. The EDA entered into agreements with Meridian Properties (TOLD) and have a PAYGO obligation in an amount not to exceed $15.3 million at 8.5% interest. To date, TOLD has certified $5,936,901 of qualified costs after grants have been subtracted. Four notes have been issued. The Phase NE note was issued on February 15, 2005 with an initial maximum principal amount of $4,668,633 and is payable from parcels making up the development. Additional notes for Phase NW of $4,079,105 and a note of $3,300,715 for Phase E were issued. $3.5 million in interfund loan proceeds was made available to TOLD for the initial public improvements in Park Commons East. The interfund loan is payable from increment first and then the remaining notes are paid. To date $3,135,046 of funds have been forwarded to TOLD. It is our understanding that this will be the total amount requested. For this interfund loan, in 2002, the Authority elected to finance the public improvements described in the Contract from proceeds of the Series 1997A Bonds, and in accordance with Section 7.3(c)(7) of the Contract, retained Available Tax Increment (as defined in the Contract) from the Park Commons TIF District to repay the Authority based on a payment schedule determined as if the City had issued new tax increment bonds. The effect of that provision was to create an interfund loan payable from the Park Commons TIF District to the Excelsior Boulevard TIF District, with interest rate at the rate of 4.53% (determined by the City’s financial advisor in accordance with the Contract). Expenditure of the Series 1997A Bond proceeds diverted funds that were available for ongoing redevelopment activities in the Project Area. Accordingly, the Authority determined to replenish the funds in the Excelsior Boulevard TIF District by making a loan from the Authority’s Development Fund to the account for the Excelsior Boulevard TIF District. By Resolution No. 07-02 approved January 16, 2007 (the 2007 Interfund Loan Resolution) the Authority approved a transfer of funds in the amount of $2,945,497.40 (representing the unpaid balance of the original interfund loan described in the Contract) from the Development Fund to the Excelsior Boulevard TIF District fund, thereby making those funds immediately available for redevelopment activities until termination of the Excelsior Boulevard TIF District on August 1, 2009. Due to the reallocation of the Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 45
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 45 market value homestead credit to market value homestead exclusion in 2011, the tax capacities will drop for the pay 2012 taxes, thus impacting several of the Notes. Adopted……………………………… 01/16/2001 Requested Date………………….…….03/08/2001 Certified Date………………….……....06/07/2001 First Increment………………………….....07/2002 Decertifies………………………..…… 12/31/2027 Former and Current PID Numbers: PhaseFormer PID # New PID #New Use07-028-24-21-010707-028-24-21-010807-028-24-21-025007-028-24-21-025107-028-24-21-025506-028-24-43-007907-028-24-12-017007-028-24-12-017407-028-24-2-1011606-028-24-34-000806-028-24-34-001806-028-24-34-000906-028-24-34-001906-028-24-34-001006-028-24-34-0022 Wolfe Park07-028-24-21-009807-028-24-21-0257 Center Green Space/Median - City Owned07-028-24-21-010907-028-24-21-011207-028-24-21-011706-028-24-34-000106-028-24-34-001106-028-24-34-001206-028-24-34-001307-028-24-21-050407-028-24-21-0099 07-028-24-21-0510 (formerly part of 7-028-24-21-0503)07-028-24-21-0254 07-028-24-21-0511 (formerly part of 7-028-24-21-0503)06-028-24-34-000206-028-24-34-0024 Outlot - Parking06-028-24-34-000306-028-24-34-000406-028-24-34-000506-028-24-34-000606-028-24-34-000706-028-24-34-0016NE06-028-24-34-0025 thru 06-028-24-34-0265Grand Condominiums at Excelsior06-028-24-34-0267 thru 06-028-24-34-0330Grand Condominiums at Excelsior1A07-028-24-21-0256 Excelsior and Grand Apartment Over Retail1B07-028-24-12-0175Excelsior and Grand Apartment Over RetailCityNWCentral Green SpaceMedian - City Owned 07-028-24-21-0258EDA Vacant Land (next to Bally's) & Part of Princeton Ln07-028-24-21-0261 thru 07-028-24-21-0502Grand Condominiums at ExcelsiorStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 46
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 46 Fiscal Disparities Election: The City elected to calculate fiscal disparities from outside (A election) the district. Frozen Tax Rate: 119.0650% Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is currently five obligations in this district as follows: Interfund loan in the amount of $3,145,046 at 4.3%. This Loan was used to finance the initial public improvements and has a priority on TIF generated from the District. $3,500,000 PAYGO Note at 8.5% interest for Phase I. This Note was issued on July 1, 2003 and is payable from 97% of the increment generated from the parcels making up the development. $3,300,715 PAYGO Note at 8.5% for Excelsior and Grand Phase E. This Note was issued on June 5, 2006 and is payable from 97% of the increment generated from the parcels making up the development. $4,668,633 PAYGO Note at 8.5% for Excelsior and Grand Phase NE. This Note was issued on June 5, 2006 and is payable from 97% of the increment generated from the parcels making up the development. $4,079,105 PAYGO Note at 8.5% for Excelsior and Grand Phase NW. This Note was issued on June 5, 2006 and is payable from 97% of the increment generated from the parcels making up the development. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 47
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 47 Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. Park Commons met the requirement when the City approved the Development Agreement with Meridian Properties on January 16, 2001. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. Park Commons Four Year Rule was deadline was June 2005. Five Year Rule: At least 75% of tax increment revenues generated within Park Commons must be used to pay for qualified costs within the district. The five year deadline was June 2006. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after June 2006. Recommendations: 1. Pooling Analysis and Use of Funds. It is estimated that there is approximately $2.3 million available for pooling when the obligations are paid. We recommend updating the City’s pooling analysis and develop a plan for use of these funds. If no pooling is completed, the balance will have to be returned either when the district expires or when the obligation is paid. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 48
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 48 City of St. Louis ParkPark Commons TIF DistrictBasic AssumptionsOption A District: 1308Inflation Rate 0.00%Assumes Last Increment In 2027 Legal MaximumBaseTotalTax RateFrozen rate119.0650%2004 157,578 359,718 120.9420%2005 36,980 551,777 114.2710%2006 97,638 791,135 107.2660%2007 87,383 1,227,542 107.1000%2008 115,058 1,772,103 103.0550%2009 115,058 1,717,952 107.8190%2010 115,058 1,656,617 112.2210%2011 115,058 1,547,447 121.8240%2012 115,058 1,507,877 130.7480%2013 112,685 1,551,565 133.1340%Cash Flow Projections3.00%NewTax Fiscal Tax Other TOLD Excelsior ExcelsiorExcelsiorExcelsior 2004 and 2005 Admin.EndTIF Yr,MonthYearBaseTotalDevelopmentCapturedRateYearIncrementRevenueIFL& Grand& Grand-Phase E& Grand-Phase NE& Grand-Phase NWBondsExpenseBalance2,135,848 9 2/1 20112010 1,742,815 279,317 273,924 300,680 390,196 424,903 5,727 485,634 9.5 8/1 2011 115,058 1,547,447 1,432,389 119.0650%10 2/1 20122011 1,689,728 279,317 247,710 285,870 429,991 430,778 11,825 489,870 10.5 8/1 2012 115,058 1,507,877 1,392,819 119.0650%11 2/1 20132012 1,644,665 100 279,317 283,502 260,885 380,278 410,458 11,526 508,668 11.5 8/1 2013 112,685 1,551,565 - 1,438,880 119.0650%12 2/1 20142013 1,713,202 279,317 330,109 238,351 354,802 383,529 51,396 584,366 12.5 8/1 2014 112,685 1,551,565 - 1,438,880 119.0650%13 2/1 20152014 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 584,269 13.5 8/1 2015 112,685 1,551,565 - 1,438,880 119.0650%14 2/1 20162015 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 584,173 14.5 8/1 2016 112,685 1,551,565 - 1,438,880 119.0650%15 2/1 20172016 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 584,077 15.5 8/1 2017 112,685 1,551,565 - 1,438,880 119.0650%16 2/1 20182017 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 583,980 16.5 8/1 2018 112,685 1,551,565 - 1,438,880 119.0650%17 2/1 20192018 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 583,884 17.5 8/1 2019 112,685 1,551,565 - 1,438,880 119.0650%18 2/1 20202019 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 583,787 18.5 8/1 2020 112,685 1,551,565 - 1,438,880 119.0650%19 2/1 20212020 1,713,202 279,317 361,922 242,085 372,513 406,066 51,396 583,691 19.5 8/1 2021 112,685 1,551,565 - 1,438,880 119.0650%20 2/1 20222021 1,713,202 279,318 361,922 242,085 372,513 406,066 51,396 583,594 20.5 8/1 2022 112,685 1,551,565 - 1,438,880 119.0650%21 2/1 20232022 1,713,202 - 361,922 242,085 372,513 406,066 51,396 862,815 21.5 8/1 2023 112,685 1,551,565 - 1,438,880 119.0650%22 2/1 20242023 1,713,202 - 361,922 242,085 372,513 406,066 51,396 1,142,035 22.5 8/1 2024 112,685 1,551,565 - 1,438,880 119.0650%23 2/1 20252024 1,713,202 361,922 242,085 372,513 406,066 51,396 1,421,256 23.5 8/1 2025 112,685 1,551,565 - 1,438,880 119.0650%24 2/1 20262025 1,713,202 361,922 242,085 372,513 406,066 51,396 1,700,477 24.5 8/1 2026 112,685 1,551,565 - 1,438,880 119.0650%25 2/1 20272026 1,713,202 180,961 242,085 372,513 406,066 51,396 2,160,658 25.5 8/1 2027 112,685 1,551,565 - 1,438,880 119.0650%26 2/1 20282027 1,713,202 242,085 372,513 406,066 51,396 2,801,801 26.5 8/1 2028 112,685 1,551,565 - 1,438,880 119.0650%27 2/1 20292028121,042 186,256 203,033 - 2,291,469 Total36,808,7814,851,564 6,816,2645,257,5918,181,8978,067,353854,552 2,291,469Tax CapacityDebt ServiceStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 49
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 49 City of St Louis Park, MNPark Commons Tax Increment Financing DistrictTOLD Internal Loan for Public Improvements4.53%Pmt. Date Payment Principal Interest End BalProject Costs 3,145,046.07Net capitalized interest 116,502.14 3,261,548.218/1/2002 0.00 3,261,548.212/1/2003 0.00 3,261,548.218/1/2003 0.00 3,261,548.212/1/2004 0.00 3,261,548.218/1/2004 128,243.90 54,369.83 73,874.07 3,207,178.382/1/2005 114,587.37 41,944.78 72,642.59 3,165,233.608/1/2005 139,658.56 67,966.02 71,692.54 3,097,267.582/1/2006 139,658.56 69,505.45 70,153.11 3,027,762.138/1/2006 139,658.56 71,079.75 68,578.81 2,956,682.382/1/2007 139,658.56 72,689.70 66,968.86 2,883,992.688/1/2007 139,658.56 74,336.13 65,322.43 2,809,656.552/1/2008 139,658.56 76,019.84 63,638.72 2,733,636.718/1/2008 139,658.56 77,741.69 61,916.87 2,655,895.022/1/2009 139,658.56 79,502.54 60,156.02 2,576,392.488/1/2009 139,658.56 81,303.27 58,355.29 2,495,089.212/1/2010 139,658.56 83,144.79 56,513.77 2,411,944.428/1/2010 139,658.56 85,028.02 54,630.54 2,326,916.402/1/2011 139,658.56 86,953.90 52,704.66 2,239,962.508/1/2011 139,658.56 88,923.41 50,735.15 2,151,039.092/1/2012 139,658.56 90,937.52 48,721.04 2,060,101.578/1/2012 139,658.56 92,997.26 46,661.30 1,967,104.312/1/2013 139,658.56 95,103.65 44,554.91 1,872,000.668/1/2013 139,658.56 97,257.75 42,400.81 1,774,742.912/1/2014 139,658.56 99,460.63 40,197.93 1,675,282.288/1/2014 139,658.56 101,713.42 37,945.14 1,573,568.862/1/2015 139,658.56 104,017.23 35,641.33 1,469,551.638/1/2015 139,658.56 106,373.22 33,285.34 1,363,178.412/1/2016 139,658.56 108,782.57 30,875.99 1,254,395.848/1/2017 139,658.56 111,246.49 28,412.07 1,143,149.352/1/2018 139,658.56 113,766.23 25,892.33 1,029,383.128/1/2018 139,658.56 116,343.03 23,315.53 913,040.092/1/2019 139,658.56 118,978.20 20,680.36 794,061.898/1/2019 139,658.56 121,673.06 17,985.50 672,388.832/1/2020 139,658.56 124,428.95 15,229.61 547,959.888/1/2020 139,658.56 127,247.27 12,411.29 420,712.612/1/2021 139,658.56 130,129.42 9,529.14 290,583.198/1/2021 139,658.56 133,076.85 6,581.71 157,506.342/1/2022 139,658.81 136,091.29 3,567.52 21,415.058/1/2022 139,659.06 21,415.05 485.05(0.00)TOTAL 3,261,548.21 1,588,274.42Actual Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 50
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 50 Maximum amount3,500,000.00$ Interest Rate8.50%Note Issued Date7/1/2003TIF will be applied first to internal loan, then iffunds remain, to TOLD per this schedule!Total TaxTax Increment CumulativeSend letter to Roger for TIF applied to internal loan.Increment Less 97% of Available at Tax IncrmentDate Interest DueAvailable Pending Petition 97.00%PaidNote Balance7/1/2003- - - - 3,500,000.00$ 8/1/200324,791.67 - - - 3,524,791.67$ 2/1/2004149,803.65 - - 3,674,595.31$ 8/1/2004156,170.30 - - 3,830,765.61$ 2/1/2005162,807.54 - - 3,993,573.15$ 8/1/2005169,726.86 152,359.08 147,788.31 147,788.31 4,015,511.70$ 2/1/2006170,659.25 143,057.30 138,765.58 286,553.89 4,047,405.37$ 8/1/2006172,014.73 112,147.77 108,783.34 395,337.23 4,110,636.76$ 2/1/2007174,702.06 112,147.78 108,783.35 504,120.58 4,176,555.47$ 8/1/2007177,503.61 129,916.03 126,018.55 630,139.13 4,228,040.53$ 2/1/2008179,691.72 129,916.05 126,018.57 756,157.70 4,281,713.68$ 8/1/2008181,972.83 140,067.85 135,865.81 892,023.51 4,327,820.70$ 2/1/2009183,932.38 140,067.85 135,865.81 1,027,889.33 4,375,887.26$ 8/1/2009185,975.21 133,011.71 129,107.69 1,156,997.02 4,432,754.78$ 2/1/2010188,392.08 133,011.71 129,021.36 1,286,018.38 4,492,125.50$ 8/1/2010190,915.33 149,384.48 144,902.95 1,430,921.32 4,538,137.89$ 2/1/2011192,870.86 139,201.49 (5,058.70) 116,208.10 1,547,129.43 4,614,800.64$ 8/1/2011196,129.03 135,569.47 131,502.39 1,678,631.82 4,679,427.28$ 2/1/2012198,875.66 135,569.47 131,502.39 1,810,134.20 4,746,800.55$ 8/1/2012201,739.02 156,703.06 151,999.96 1,962,134.16 4,796,539.62$ 2/1/2013203,852.93 153,764.06 149,148.63 2,111,282.79 4,851,243.93$ 8/1/2013206,177.87 153,764.06 149,151.14 2,260,433.92 4,908,270.66$ 2/1/2014208,601.50 153,764.06 149,151.14 2,409,585.06 4,967,721.02$ 8/1/2014211,128.14 153,764.06 149,151.14 2,558,736.19 5,029,698.03$ 2/1/2015213,762.17 153,764.06 149,151.14 2,707,887.33 5,094,309.06$ 8/1/2015216,508.14 153,764.06 149,151.14 2,857,038.46 5,161,666.06$ 2/1/2016219,370.81 153,764.06 149,151.14 3,006,189.60 5,231,885.74$ 8/1/2016222,355.14 153,764.06 149,151.14 3,155,340.74 5,305,089.75$ 2/1/2017225,466.31 153,764.06 149,151.14 3,304,491.87 5,381,404.92$ 8/1/2017228,709.71 153,764.06 149,151.14 3,453,643.01 5,460,963.50$ 2/1/2018232,090.95 153,764.06 149,151.14 3,602,794.14 5,543,903.31$ 8/1/2018235,615.89 153,764.06 149,151.14 3,751,945.28 5,630,368.07$ 2/1/2019239,290.64 153,764.06 149,151.14 3,901,096.41 5,720,507.57$ 8/1/2019243,121.57 153,764.06 149,151.14 4,050,247.55 5,814,478.01$ 2/1/2020247,115.32 153,764.06 149,151.14 4,199,398.68 5,912,442.19$ 8/1/2020251,278.79 153,764.06 149,151.14 4,348,549.82 6,014,569.85$ 2/1/2021255,619.22 153,764.06 149,151.14 4,497,700.95 6,121,037.93$ 8/1/2021260,144.11 153,764.06 149,151.14 4,646,852.09 6,232,030.91$ 2/1/2022264,861.31 153,764.06 149,151.14 4,796,003.22 6,347,741.09$ 8/1/2022269,779.00 153,764.06 149,151.14 4,945,154.36 6,468,368.95$ 2/1/2023274,905.68 153,764.06 149,151.14 5,094,305.49 6,594,123.49$ 8/1/2023280,250.25 153,764.06 149,151.14 5,243,456.63 6,725,222.61$ 2/1/2024285,821.96 153,764.06 149,151.14 5,392,607.77 6,861,893.43$ 8/1/2024291,630.47 153,764.06 149,151.14 5,541,758.90 7,004,372.77$ 2/1/2025297,685.84 153,764.06 149,151.14 5,690,910.04 7,152,907.47$ 8/1/2025303,998.57 153,764.06 149,151.14 5,840,061.17 7,307,754.91$ 2/1/2026310,579.58 153,764.06 149,151.14 5,989,212.31 7,469,183.35$ TOTAL9,958,395.66$ 6,193,760.65$ 5,989,212.31$ City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Excelsior and Grand Tax Increment DistrictStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 51
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 51 Maximum amount 4,668,633.00$ Interest Rate 8.50%Note Issued Date 6/5/2006Last Payment DateTotal Tax Tax Increment Tax IncrementIncrement Available at PaidDate Interest DueAvailable97.00%Note Balance6/5/20064,668,633.00$ 8/1/200661,729.70$ 112,479.49$ 109,105.11$ 109,105.11$ 4,621,257.60$ 2/1/2007196,403.45 101,595.00 98,547.15 98,547.15 4,719,113.90$ 8/1/2007200,562.34 196,471.29 190,577.15 190,577.15 4,729,099.08$ 2/1/2008200,986.71 175,872.60 187,242.17 187,242.17 4,742,843.62$ 8/1/2008201,570.85 207,324.32 201,104.59 201,104.59 4,743,309.89$ 2/1/2009201,590.67 212,699.88 206,318.88 206,318.88 4,738,581.67$ 8/1/2009201,389.72 211,042.94 204,711.65 232,297.05 4,707,674.35$ 2/1/2010200,076.16 211,042.94 204,711.65 177,126.00 4,730,624.51$ 8/1/2010201,051.54 219,659.33 213,069.55 213,069.55 4,718,606.50$ 2/1/2011200,540.78 219,659.33 210,706.56 210,706.56 4,708,440.71$ 8/1/2011200,108.73 226,066.93 219,284.92 219,284.92 4,689,264.52$ 2/1/2012199,293.74 187,548.67 181,922.21 181,922.21 4,706,636.05$ 8/1/2012200,032.03 211,005.48 198,355.87 198,355.87 4,708,312.22$ 2/1/2013200,103.27 173,758.09 168,545.35 168,545.35 4,739,870.14$ 8/1/2013201,444.48 192,017.00 186,256.49 186,256.49 4,755,058.13$ 2/1/2014202,089.97 192,017.00 186,256.49 186,256.49 4,770,891.61$ 8/1/2014202,762.89 192,017.00 186,256.49 186,256.49 4,787,398.01$ 2/1/2015203,464.42 192,017.00 186,256.49 186,256.49 4,804,605.94$ 8/1/2015204,195.75 192,017.00 186,256.49 186,256.49 4,822,545.20$ 2/1/2016204,958.17 192,017.00 186,256.49 186,256.49 4,841,246.88$ 8/1/2016205,752.99 192,017.00 186,256.49 186,256.49 4,860,743.38$ 2/1/2017206,581.59 192,017.00 186,256.49 186,256.49 4,881,068.48$ 8/1/2017207,445.41 192,017.00 186,256.49 186,256.49 4,902,257.41$ 2/1/2018208,345.94 192,017.00 186,256.49 186,256.49 4,924,346.85$ 8/1/2018209,284.74 192,017.00 186,256.49 186,256.49 4,947,375.11$ 2/1/2019210,263.44 192,017.00 186,256.49 186,256.49 4,971,382.06$ 8/1/2019211,283.74 192,017.00 186,256.49 186,256.49 4,996,409.31$ 2/1/2020212,347.40 192,017.00 186,256.49 186,256.49 5,022,500.21$ 8/1/2020213,456.26 192,017.00 186,256.49 186,256.49 5,049,699.98$ 2/1/2021214,612.25 192,017.00 186,256.49 186,256.49 5,078,055.74$ 8/1/2021215,817.37 192,017.00 186,256.49 186,256.49 5,107,616.62$ 2/1/2022217,073.71 192,017.00 186,256.49 186,256.49 5,138,433.83$ 8/1/2022218,383.44 192,017.00 186,256.49 186,256.49 5,170,560.78$ 2/1/2023219,748.83 192,017.00 186,256.49 186,256.49 5,204,053.13$ 8/1/2023221,172.26 192,017.00 186,256.49 186,256.49 5,238,968.89$ 2/1/2024222,656.18 192,017.00 186,256.49 186,256.49 5,275,368.58$ 8/1/2024224,203.16 192,017.00 186,256.49 186,256.49 5,313,315.26$ 2/1/2025225,815.90 192,017.00 186,256.49 186,256.49 5,352,874.66$ 8/1/2025227,497.17 192,017.00 186,256.49 186,256.49 5,394,115.35$ 2/1/2026229,249.90 192,017.00 186,256.49 186,256.49 5,437,108.76$ 8/1/2026231,077.12 192,017.00 186,256.49 186,256.49 5,481,929.39$ 2/1/2027232,982.00 192,017.00 186,256.49 186,256.49 5,528,654.90$ 8/1/2027234,967.83 192,017.00 186,256.49 186,256.49 5,577,366.25$ 2/1/2028237,038.07 192,017.00 186,256.49 186,256.49 5,628,147.82$ TOTAL9,141,412.08 8,426,736.29 8,181,897.52 8,181,897.26 City of St. Louis ParkEconomic Development AuthorityMeridian Properties Real Estate Development LLCPhase NE Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 52
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 52 Maximum amount 3,300,715.00$ Interest Rate 8.50%Note Issued Date 6/5/2006Total Tax Tax Increment CumulativeIncrement Available at Tax IncrementDate Interest DueAvailable97.00%PaidNote Balance6/5/20063,300,715.00$ 8/1/200643,642.79 5,491.77 5,327.02 5,327.02 3,339,030.77$ 2/1/2007141,908.81 - - 5,327.02 3,480,939.58$ 8/1/2007147,939.93 105,706.87 102,535.66 107,862.68 3,526,343.85$ 2/1/2008149,869.61 106,549.74 103,353.25 211,215.92 3,572,860.22$ 8/1/2008151,846.56 156,484.19 151,789.66 363,005.59 3,572,917.11$ 2/1/2009151,848.98 150,195.03 145,689.18 508,694.77 3,579,076.91$ 8/1/2009152,110.77 157,607.51 152,879.28 661,574.05 3,578,308.39$ 2/1/2010152,078.11 157,607.51 152,879.28 814,453.34 3,577,507.21$ 8/1/2010152,044.06 152,372.33 147,801.16 962,254.50 3,581,750.11$ 2/1/2011152,224.38 152,372.33 146,170.47 1,108,424.97 3,587,804.02$ 8/1/2011152,481.67 144,020.40 139,699.79 1,248,124.76 3,600,585.90$ 2/1/2012153,024.90 139,089.87 134,917.17 1,383,041.93 3,618,693.63$ 8/1/2012153,794.48 129,863.86 125,967.95 1,509,009.88 3,646,520.16$ 2/1/2013154,977.11 120,937.71 117,308.58 1,626,318.45 3,684,188.69$ 8/1/2013156,578.02 124,786.00 121,042.42 1,747,360.87 3,719,724.29$ 2/1/2014158,088.28 124,786.00 121,042.42 1,868,403.29 3,756,770.15$ 8/1/2014159,662.73 124,786.00 121,042.42 1,989,445.71 3,795,390.47$ 2/1/2015161,304.09 124,786.00 121,042.42 2,110,488.13 3,835,652.14$ 8/1/2015163,015.22 124,786.00 121,042.42 2,231,530.55 3,877,624.94$ 2/1/2016164,799.06 124,786.00 121,042.42 2,352,572.97 3,921,381.58$ 8/1/2016166,658.72 124,786.00 121,042.42 2,473,615.39 3,966,997.87$ 2/1/2017168,597.41 124,786.00 121,042.42 2,594,657.81 4,014,552.86$ 8/1/2017170,618.50 124,786.00 121,042.42 2,715,700.23 4,064,128.94$ 2/1/2018172,725.48 124,786.00 121,042.42 2,836,742.65 4,115,812.00$ 8/1/2018174,922.01 124,786.00 121,042.42 2,957,785.07 4,169,691.59$ 2/1/2019177,211.89 124,786.00 121,042.42 3,078,827.49 4,225,861.06$ 8/1/2019179,599.10 124,786.00 121,042.42 3,199,869.91 4,284,417.74$ 2/1/2020182,087.75 124,786.00 121,042.42 3,320,912.33 4,345,463.07$ 8/1/2020184,682.18 124,786.00 121,042.42 3,441,954.75 4,409,102.83$ 2/1/2021187,386.87 124,786.00 121,042.42 3,562,997.17 4,475,447.28$ 8/1/2021190,206.51 124,786.00 121,042.42 3,684,039.59 4,544,611.37$ 2/1/2022193,145.98 124,786.00 121,042.42 3,805,082.01 4,616,714.93$ 8/1/2022196,210.38 124,786.00 121,042.42 3,926,124.43 4,691,882.90$ 2/1/2023199,405.02 124,786.00 121,042.42 4,047,166.85 4,770,245.50$ 8/1/2023202,735.43 124,786.00 121,042.42 4,168,209.27 4,851,938.52$ 2/1/2024206,207.39 124,786.00 121,042.42 4,289,251.69 4,937,103.48$ 8/1/2024209,826.90 124,786.00 121,042.42 4,410,294.11 5,025,887.96$ 2/1/2025213,600.24 124,786.00 121,042.42 4,531,336.53 5,118,445.78$ 8/1/2025217,533.95 124,786.00 121,042.42 4,652,378.95 5,214,937.30$ 2/1/2026221,634.84 124,786.00 121,042.42 4,773,421.37 5,315,529.72$ 8/1/2026225,910.01 124,786.00 121,042.42 4,894,463.79 5,420,397.31$ 2/1/2027230,366.89 124,786.00 121,042.42 5,015,506.21 5,529,721.78$ 8/1/2027235,013.18 124,786.00 121,042.42 5,136,548.63 5,643,692.53$ 2/1/2028239,856.93 124,786.00 121,042.42 5,257,591.05 5,762,507.05$ TOTAL7,719,383.10 5,421,879.12 5,257,591.05 City of St. Louis ParkEconomic Development AuthorityMeridian Properties Real Estate Development LLCPhase E Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 53
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 53 Maximum amount 4,079,105.00$ Interest Rate 8.50%Note Issued Date 6/5/2006Total Tax Tax Increment CumulativeIncrement Available at Tax IncrementDate Interest DueAvailable97.00%PaidNote Balance6/5/20064,079,105.00$ 8/1/200653,934.83 - - - 4,133,039.83$ 2/1/2007175,654.19 - - - 4,308,694.03$ 8/1/2007183,119.50 5,608.37 5,440.12 5,440.12 4,486,373.40$ 2/1/2008190,670.87 5,608.36 5,440.11 10,880.23 4,671,604.16$ 8/1/2008198,543.18 - - 10,880.23 4,870,147.34$ 2/1/2009206,981.26 320,123.60 310,519.89 321,400.12 4,766,608.71$ 8/1/2009202,580.87 214,767.16 208,324.15 529,724.27 4,760,865.43$ 2/1/2010202,336.78 214,767.16 208,324.15 738,048.41 4,754,878.07$ 8/1/2010202,082.32 223,276.89 216,578.58 954,626.99 4,740,381.80$ 2/1/2011201,466.23 223,276.89 208,029.91 1,162,656.90 4,733,818.12$ 8/1/2011201,187.27 229,636.70 222,747.60 1,385,404.50 4,712,257.79$ 2/1/2012200,270.96 203,750.25 197,637.74 1,583,042.25 4,714,891.01$ 8/1/2012200,382.87 219,402.70 212,820.62 1,795,862.87 4,702,453.25$ 2/1/2013199,854.26 186,080.63 180,496.16 1,976,359.03 4,721,811.35$ 8/1/2013200,676.98 209,312.50 203,033.13 2,179,392.16 4,719,455.21$ 2/1/2014200,576.85 209,312.50 203,033.13 2,382,425.28 4,716,998.93$ 8/1/2014200,472.45 209,312.50 203,033.13 2,585,458.41 4,714,438.26$ 2/1/2015200,363.63 209,312.50 203,033.13 2,788,491.53 4,711,768.76$ 8/1/2015200,250.17 209,312.50 203,033.13 2,991,524.66 4,708,985.81$ 2/1/2016200,131.90 209,312.50 203,033.13 3,194,557.78 4,706,084.58$ 8/1/2016200,008.59 209,312.50 203,033.13 3,397,590.91 4,703,060.05$ 2/1/2017199,880.05 209,312.50 203,033.13 3,600,624.03 4,699,906.97$ 8/1/2017199,746.05 209,312.50 203,033.13 3,803,657.16 4,696,619.89$ 2/1/2018199,606.35 209,312.50 203,033.13 4,006,690.28 4,693,193.12$ 8/1/2018199,460.71 209,312.50 203,033.13 4,209,723.41 4,689,620.70$ 2/1/2019199,308.88 209,312.50 203,033.13 4,412,756.53 4,685,896.45$ 8/1/2019199,150.60 209,312.50 203,033.13 4,615,789.66 4,682,013.93$ 2/1/2020198,985.59 209,312.50 203,033.13 4,818,822.78 4,677,966.39$ 8/1/2020198,813.57 209,312.50 203,033.13 5,021,855.91 4,673,746.84$ 2/1/2021198,634.24 209,312.50 203,033.13 5,224,889.03 4,669,347.96$ 8/1/2021198,447.29 209,312.50 203,033.13 5,427,922.16 4,664,762.12$ 2/1/2022198,252.39 209,312.50 203,033.13 5,630,955.28 4,659,981.38$ 8/1/2022198,049.21 209,312.50 203,033.13 5,833,988.41 4,654,997.47$ 2/1/2023197,837.39 209,312.50 203,033.13 6,037,021.53 4,649,801.74$ 8/1/2023197,616.57 209,312.50 203,033.13 6,240,054.66 4,644,385.18$ 2/1/2024197,386.37 209,312.50 203,033.13 6,443,087.78 4,638,738.43$ 8/1/2024197,146.38 209,312.50 203,033.13 6,646,120.91 4,632,851.69$ 2/1/2025196,896.20 209,312.50 203,033.13 6,849,154.03 4,626,714.76$ 8/1/2025196,635.38 209,312.50 203,033.13 7,052,187.16 4,620,317.01$ 2/1/2026196,363.47 209,312.50 203,033.13 7,255,220.28 4,613,647.36$ 8/1/2026196,080.01 209,312.50 203,033.13 7,458,253.41 4,606,694.25$ 2/1/2027195,784.51 209,312.50 203,033.13 7,661,286.53 4,599,445.63$ 8/1/2027195,476.44 209,312.50 203,033.13 7,864,319.66 4,591,888.94$ 2/1/2028195,155.28 209,312.50 203,033.13 8,067,352.78 4,584,011.10$ TOTAL8,572,258.88 8,325,673.72 8,067,352.78 City of St. Louis ParkEconomic Development AuthorityMeridian Properties Real Estate Development LLCPhase NW Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 54
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 54 Edgewood Description: Edgewood (County #1309) is a soils condition district established on September 15, 2003 and is located within the Redevelopment Project No 1. Originally, the district encompassed one (1) parcel of land and was established to facilitate cleanup of a contaminated site and the construction of an office/warehouse. Expenditures from this district are to be used to mitigate certain hazardous substances in order to facilitate construction of a 79,000 square foot office/warehouse facility. This district was certified by the County on April 26, 2004 and began to receive increment in 2005. The interest rate on the note has been set at 1.7% due to reduced interest loans from other governmental entities. The EDA has pledged 95% of tax increment revenues from this District for a PAYGO note with Edgewood Investors, LLC (originally Real Estate Recycling), in an amount not to exceed $600,000 in two separate notes Principal and interest was first paid on August 1, 2006 and is paid each February 1 and August 1 through February 1, 2023. A soils district cannot pool funds and will need to be decertified as soon as the original obligation is paid. Adopted……………………….… 09/15/2003 Requested Date………………..… 11/24/2003 Certified Date………………….... 04/26/2004 First Increment……..……………..… 07/2005 Anticipated Decertification……… 12/31/2021 Former and Current PID Numbers: Former PID # Former UseNew PID #New Use08-117-21-14-0043 ConAgraSame as FormerMulti-Tenant Office/WarehouseStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 55
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 55 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 120.9420% Allowable Uses: MN Statute 469.176 subd. 4b specifies the activities on which tax increment from a soils condition district may be spent. In general, tax increment may only be used to acquire property and for removal and remediation actions and allowable administrative expenses Obligations: There is one PAYGO Note that was issued for this project on February 1, 2004 as follows: $600,000 PAYGO Note at 1.7% interest. This Note was issued on February 1, 2004 to Edgewood Investors LLC and is paid from 95% of the available increment. It is anticipated that the Note will be repaid by August 1, 2021. Other Development Agreement Compliance: 1. Repayment of Assistance. If the property is transferred within 5 years of issuance of the Certificate of Occupancy, an analysis of repayment of a portion of the assistance is to be completed. If the property does not transfer ownership in this timeframe, then no look back is required. The property ownership was never transferred in the 5-year period. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Edgewood District met the requirement when the City approved the Development Agreement with Edgewood Investors, LLC. A Tax Increment Financing Note was authorized on August 1, 2006. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The Edgewood Four Year Rule was deadline was April 2008. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 56
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 56 Five Year Rule: At least 75% of tax increment revenues generated within the Edgewood district must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Edgewood Redevelopment district fits this timeline and its five year rule is now April 26, 2014. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after April 2009. Recommendations: 1. Decertification. This district will need to be decertified when the note is paid, which is estimated to be August 2021. 2. Pooling Analysis and Use of Funds. As stated above, pooling is not allowed in Soils Condition TIF Districts. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 57
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 57 City of St. Louis ParkEdgewood TIF DistrictBasic AssumptionsOption B District: 1309Inflation Rate 0.00%Assumes Last Increment In 2021 Expected TermBaseTotalTax Rate2025 Legal Maximum2004- - 120.9420%Frozen rate 120.9420%200519,250 33,650 114.2710%200619,250 69,250 107.2660%200719,250 74,850 107.1000%200819,250 103,630 103.0550%200919,250 108,370 107.8190%201019,250 108,370 112.2210%201119,250 106,786 121.8240%201219,250 75,150 130.7480%201319,250 75,150 133.1340%Cash Flow Projections0.00% 5.00%Fiscal Tax Fiscal Tax Other Invest Debt Admin. Other EndTIF Yr,MonthYearBaseTotalDisparityCapturedRateYearIncrementRevenueIncomeServiceExpenseExpensesBalance6 8/1 2010 19,250 108,370 (27,594) 61,526 112.2210%6.5 2/1 20112010 68,796 - 64,318 5,563 - 34,383 7 8/1 2011 19,250 106,786 (31,080) 56,456 120.9420%7.5 2/1 20122011 25,253 318 33,110 6,023 - 20,821 8 8/1 2012 19,250 75,150 (19,563) 36,337 120.9420%8.5 2/1 20132012 43,789 - 65,262 - - (652) 9 8/1 2013 19,250 75,150 (19,088) 36,812 120.9420%9.5 2/1 20142013 44,521 - 41,947 445 - 1,477 10 8/1 2014 19,250 75,150 (19,088) 36,812 120.9420%10.5 2/1 20152014 44,521 - 42,295 2,226 - 1,477 11 8/1 2015 19,250 75,150 (19,088) 36,812 120.9420%11.5 2/1 20162015 44,521 - 42,295 2,226 - 1,478 12 8/1 2016 19,250 75,150 (19,088) 36,812 120.9420%12.5 2/1 20172016 44,521 - 42,295 2,226 - 1,478 13 8/1 2017 19,250 75,150 (19,088) 36,812 120.9420%13.5 2/1 20182017 44,521 - 42,295 2,226 - 1,478 14 8/1 2018 19,250 75,150 (19,088) 36,812 120.9420%14.5 2/1 20192018 44,521 - 42,295 2,226 - 1,478 15 8/1 2019 19,250 75,150 (19,088) 36,812 120.9420%15.5 2/1 20202019 44,521 - 42,295 2,226 - 1,478 16 8/1 2020 19,250 75,150 (19,088) 36,812 120.9420%16.5 2/1 20212020 44,521 - 42,295 2,226 - 1,478 17 8/1 2021 19,250 75,150 (19,088) 36,812 120.9420%17.5 2/1 20222021 44,521 - 18,147 2,226 - 25,626 18 8/1 2022 19,250 75,150 (19,088) 36,812 120.9420%18.5 2/1 20232022- - - - 25,626 19 8/1 2023 19,250 75,150 (19,088) 36,812 120.9420%19.5 2/1 20242023 - - - - - 25,626 Total763,2911,220 700,733 38,151025,626Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 58
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 58 Maximum amount 600,000.00$ Interest Rate 1.70%Note Issued Date 2/1/2004Final Pyament 2/1/2023Total Tax Less Tax Increment Tax IncrementIncrement Pending Available at PaidDate Interest DueAvailable Tax Petitions 95.00%Note Balance600,000.00$ 2/1/2004- 600,000.00$ 8/1/20045,100.00 - - - 605,100.00$ 2/1/20055,143.35 - - - 610,243.35$ 8/1/20055,187.07 12,158.00 - - 615,430.42$ 2/1/20065,231.16 - - - 620,661.58$ 8/1/20065,275.62 - 30,157.00 30,157.00 595,780.20$ 2/1/20075,064.13 19,586.50 18,607.18 18,607.18 582,237.16$ 8/1/20074,949.02 19,586.50 20,923.63 20,923.63 566,262.54$ 2/1/20084,813.23 22,025.00 20,923.64 20,923.64 550,152.13$ 8/1/20084,676.29 22,025.00 29,816.81 29,816.81 525,011.62$ 2/1/20094,462.60 31,499.79 29,816.80 29,816.80 499,657.42$ 8/1/20094,247.09 33,304.66 31,639.43 31,639.43 472,265.08$ 2/1/20104,014.25 33,304.66 31,639.43 31,639.03 444,639.90$ 8/1/20103,800.44 34,398.44 32,678.52 32,678.52 415,761.82$ 2/1/20113,533.98 34,398.44 32,678.52 32,678.52 386,617.28$ 8/1/20113,286.25 34,016.76 (31,884.54) 431.38 431.38 389,472.14$ 2/1/20123,310.51 34,016.76 (9,829.23) 44,462.00 44,462.00 348,320.65$ 8/1/20122,960.73 21,894.36 20,799.64 20,799.64 330,481.74$ 2/1/20132,809.09 21,894.37 20,799.65 20,799.65 312,491.18$ 8/1/20132,656.18 22,260.50 21,147.48 21,147.48 293,999.88$ 2/1/20142,499.00 22,260.50 21,147.48 21,147.48 275,351.40$ 8/1/20142,340.49 22,260.50 21,147.48 21,147.48 256,544.42$ 2/1/20152,180.63 22,260.50 21,147.48 21,147.48 237,577.57$ 8/1/20152,019.41 22,260.50 21,147.48 21,147.48 218,449.50$ 2/1/20161,856.82 22,260.50 21,147.48 21,147.48 199,158.85$ 8/1/20161,692.85 22,260.50 21,147.48 21,147.48 179,704.22$ 2/1/20171,527.49 22,260.50 21,147.48 21,147.48 160,084.24$ 8/1/20171,360.72 22,260.50 21,147.48 21,147.48 140,297.48$ 2/1/20181,192.53 22,260.50 21,147.48 21,147.48 120,342.53$ 8/1/20181,022.91 22,260.50 21,147.48 21,147.48 100,217.97$ 2/1/2019851.85 22,260.50 21,147.48 21,147.48 79,922.34$ 8/1/2019679.34 22,260.50 21,147.48 21,147.48 59,454.21$ 2/1/2020505.36 22,260.50 21,147.48 21,147.48 38,812.09$ 8/1/2020329.90 22,260.50 21,147.48 21,147.48 17,994.52$ 2/1/2021152.95 22,260.50 18,147.48 18,147.48 (0.00)$ 8/1/2021(0.00) 22,260.50 - (0.00)$ TOTAL100,733.23 796,326.03 700,733.23 700,732.83 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Edgewood Investors Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 59
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 59 Wolfe Lake Commercial Redevelopment Description: Wolfe Lake TIF District (County #1310) is a redevelopment district established on July 7, 2003 and is located within the Redevelopment Project No 1. Originally the district encompassed four (4) parcels of land and was established to facilitate the rehabilitation of an area adjacent to West 36th Street and Belt Line Boulevard into office and other commercial uses. These parcels were eventually replatted into two (2) parcels when development was commenced. This district was certified by the County on April 26, 2004 and first increment was received in 2006. Adopted……………………..….…07/07/2003 Requested Date……………………12/15/2003 Certified Date……………….…….04/26/2004 First Increment………………..…....… 7/2006 Anticipated Decertification…….....12/31/2020 Former and Current PID Numbers: Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 120.9240% Former PID # Former UseNew PID #New Use06-028-24-31-0020 Vacant Land06-028-24-31-0022Wolfe Lake West Multi-Tenant Commercial06-028-24-31-0020 Multi-Tenant Building06-028-24-31-0023Wolfe Lake East - OfficeStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 60
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 60 Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is currently one PAYGO Note in this district as follows: $996,000 at 7.5% interest. This Note was issued on January 20, 2006 to Wolf Lake/Belt Line Industrial Park. The EDA has pledged 95% of tax increment revenues from this District and it is anticipated that the Note will be repaid in 15 years or by August 1, 2020. Other Development Agreement Compliance: 2. Minimum Assessment Agreement. The minimum market value as of January 2, 2005 shall be $9,500,000. The Assessment Agreement shall be in place until the TIF Note is paid in full or the TIF District terminates, whichever is sooner. 3. Repayment of Assistance. If the property is transferred within 5 years of issuance of the Certificate of Occupancy, an analysis of repayment of a portion of the assistance is to be completed. If the property does not transfer ownership in this timeframe, then no look back is required. The property ownership was never transferred in the 5-year period. 4. Authority’s Option to Cure Default on Mortgage. Developer must provide City with any notice of default it receives from its mortgage holder and the City has the right, but not the obligation to cure any default on behalf of the developer. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Wolfe Lake district met the requirement when the City approved the Development Agreement with Belt Line Industrial Park, Inc. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. Wolfe Lake Four Year Rule was deadline was April 2008. This district did not fall within the certification dates for extension of the four year rule. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 61
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 61 Five Year Rule: At least 75% of tax increment revenues generated within the Wolfe Lake district must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Wolfe Lake Redevelopment district fits this timeline and its five year rule is now April 26, 2014. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after April 2009. Recommendations: 1. 5-Year Rule. Continue to review if there are any development opportunities to take advantage of the extended 5-year rule to 10-years, which is April 26, 2014. 2. Decertification. This district will need to be decertified when the note is paid, which is estimated to be August 2020 3. Pooling Analysis and Use of Funds. It is estimated that there will be approximately $132,000 available at the end of the District. We recommend that the City complete a pooling analysis and develop a plan for use of these funds. If no pooling is completed, the balance will have to be returned either when the district expires or when the obligation is paid. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 62
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 62 City of St. Louis ParkWolfe Lake TIF DistrictBasic AssumptionsOption B District: 1310Inflation Rate 0.00%Assumes Last Increment In 2031 Legal MaximumBaseTotalTax Rate2020 Expected Term2004- - 120.9420%Frozen rate120.9420%200534,346 34,346 114.2710%200634,346 188,500 107.2660%200734,346 188,500 107.1000%200834,346 198,140 103.0550%200934,346 198,950 107.8190%201034,346 201,780 112.2210%201134,346 188,500 121.8240%201234,346 188,500 130.7480%201334,346 188,500 133.1340%Cash Flow Projections0.00%5.00%Fiscal NewTax Fiscal Tax Other Invest Debt Admin. OtherEndTIF Yr,MonthYearBaseTotalDisparitiesDevelopmentCapturedRateYearIncrementRevenueIncomeServiceExpenseExpensesBalance5 8/1 2010 34,346 201,780 (51,842) 115,592 112.2210%5.5 2/1 20112010 129,250 117 119,517 5,252 - 80,204 6 8/1 2011 34,346 188,500 (54,733) 99,421 120.9420%6.5 2/1 20122011 117,279 397 116,766 5,994 - 75,120 7 8/1 2012 34,346 188,500 (53,949) 100,205 120.9420%7.5 2/1 20132012 120,752 215 112,739 3,158 - 80,190 8 8/1 2013 34,346 188,500 (52,638) 101,516 120.9420%8.5 2/1 20142013 122,775 - 115,371 6,139 - 81,455 9 8/1 2014 34,346 188,500 (52,638) 101,516 120.9420%9.5 2/1 20152014 122,775 - 116,329 6,139 - 81,763 10 8/1 2015 34,346 188,500 (52,638) 101,516 120.9420%10.5 2/1 20162015 122,775 - 116,329 6,139 - 82,070 11 8/1 2016 34,346 188,500 (52,638) 101,516 120.9420%11.5 2/1 20172016 122,775 - 116,329 6,139 - 82,377 12 8/1 2017 34,346 188,500 (52,638) 101,516 120.9420%12.5 2/1 20182017 122,775 - 116,329 6,139 - 82,685 13 8/1 2018 34,346 188,500 (52,638) 101,516 120.9420%13.5 2/1 20192018 122,775 - 116,329 6,139 - 82,992 14 8/1 2019 34,346 188,500 (52,638) 101,516 120.9420%14.5 2/1 20202019 122,775 - 116,329 6,139 - 83,300 15 8/1 2020 34,346 188,500 (52,638) 101,516 120.9420%15.5 2/1 20212020 122,775 - 67,486 6,139 - 132,450 16 8/1 2021 34,346 188,500 (52,638) 101,516 120.9420%16.5 2/1 20222021- - - - 132,450 Total1,837,2662,554 1,634,656 72,7140132,450Tax CapacityStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 63
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 63 Maximum amount 996,000.00$ Interest Rate 7.50%Note Issued Date 1/20/2006Final Payment 2/1/2023Total Tax Less Tax Increment CumulativeIncrement Tax Petition Available at Tax IncrementDate Interest DueAvailable Reduction94.75%PaidNote Balance996,000.00$ 2/1/20062,490.00 - 998,490.00$ 8/1/200637,443.38 60,387.11 57,367.75 57,367.75 978,565.62$ 2/1/200736,696.21 60,387.13 57,367.77 114,735.53 957,894.06$ 8/1/200735,921.03 61,064.50 58,011.34 172,746.87 935,803.74$ 2/1/200835,092.64 61,064.50 58,011.34 230,758.21 912,885.05$ 8/1/200834,233.19 61,145.62 57,878.99 288,637.20 889,239.24$ 2/1/200933,346.47 61,145.62 57,878.97 346,516.17 864,706.75$ 8/1/200932,426.50 61,513.46 58,284.00 404,800.17 838,849.25$ 2/1/201031,456.85 61,513.46 58,284.00 463,084.17 812,022.09$ 8/1/201030,620.00 64,625.99 61,233.12 524,317.30 781,408.97$ 2/1/201129,302.84 64,625.99 61,233.12 585,550.42 749,478.68$ 8/1/201128,105.45 59,904.72 (1,227.07) 55,532.66 641,083.08 722,051.47$ 2/1/201227,076.93 59,904.72 (1,227.07) 55,532.66 696,615.73 693,595.75$ 8/1/201226,009.84 60,376.28 57,206.52 753,822.26 662,399.07$ 2/1/201324,839.96 60,376.29 57,206.53 811,028.79 630,032.50$ 8/1/201323,626.22 61,387.50 58,164.66 869,193.44 595,494.06$ 2/1/201422,331.03 61,387.50 58,164.66 927,358.10 559,660.43$ 8/1/201420,987.27 61,387.50 58,164.66 985,522.76 522,483.04$ 2/1/201519,593.11 61,387.50 58,164.66 1,043,687.41 483,911.50$ 8/1/201518,146.68 61,387.50 58,164.66 1,101,852.07 443,893.53$ 2/1/201616,646.01 61,387.50 58,164.66 1,160,016.72 402,374.88$ 8/1/201615,089.06 61,387.50 58,164.66 1,218,181.38 359,299.28$ 2/1/201713,473.72 61,387.50 58,164.66 1,276,346.04 314,608.34$ 8/1/201711,797.81 61,387.50 58,164.66 1,334,510.69 268,241.50$ 2/1/201810,059.06 61,387.50 58,164.66 1,392,675.35 220,135.90$ 8/1/20188,255.10 61,387.50 58,164.66 1,450,840.01 170,226.34$ 2/1/20196,383.49 61,387.50 58,164.66 1,509,004.66 118,445.17$ 8/1/20194,441.69 61,387.50 58,164.66 1,567,169.32 64,722.21$ 2/1/20202,427.08 61,387.50 58,164.66 1,625,333.97 8,984.64$ 8/1/2020336.92 61,387.50 9,321.56 1,634,655.53 0.00$ TOTAL638,655.54 1,778,847.88 1,634,655.53 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Belt Line Industrial Park Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 64
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 64 Aquila Commons Description: Aquila Commons (County #1311) is housing district established on September 7, 2004 and is located within the Redevelopment Project No 1. Originally the district encompassed one (1) parcel of land and was established to facilitate the construction of a limited equity senior housing co-operative on the former Talmud Torah School. The district currently contains 106 owner-occupied units in the form of a limited equity cooperative, under which 95% of the initial buyers will need to meet TIF income restrictions Adopted………………………..09/07/2004 Requested Date………………...12/20/2004 Certified Date………….....……04/04/2005 First Increment…………………… 07/2007 Anticipated Decertification…….12/31/2018 Former and Current PID Numbers: This TIF district originally had one (1) parcel and was replatted into 107 parcels. Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 114.27100% Former PID # Former UseNew PID #New Use18-117-21-14-0008Aquila Commons Senior Cooperative - Master Parcel18-117-21-14-0167 through 0272Aquila Commons Senior Cooperative18-117-21-14-0008SchoolStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 65
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 65 Allowable Uses: MN Statute 469.176 subd. 4d specifies the activities on which tax increment from a housing district may be spent. In general, tax increment must be spent public improvements directly related to housing projects and administrative expenses. Obligations: There is one PAYGO Note that was issued for this project as follows: $1,050,000 at 5.75% interest. This Note was issued on May 25, 2006 to Aquila Senior LLC. The EDA has pledged 95% of tax increment revenues from this District and it is anticipated that the Note will be repaid in 10.5 years or by August 1, 2018 Due to the reallocation of the market value homestead credit to a market value homestead exclusion in 2011, the tax capacities dropped for the pay 2012 taxes, thus reducing the amount of TIF and extending the repayment period on the Note. Other Development Agreement Compliance: 1. Income restrictions. 95% of the units sold are income restricted pursuant to TIF law. Based upon this, at least 40% of the unit interests (42 units) need to be sold to persons with a household income not exceeding 80% of the median income and adjusted for family size. At least 55% of the unit interests (58 units) need to be sold to persons at or below 100% of the area median income for households of two or less and to persons at or below 115% of the area median income for households of three or more. 2. Assignment of Note. Except for a collateral assignment to a Holder the developer may not transfer or assign its interest in the TIF Note to another party without the written consent of the Authority. a. Look Back. Within 60 days after closing on initial sale of all units, the developer will provide the City the financial data to calculate the actual rate of return to the developer. If, based on such review, the actual profit for the developer exceeds an 8.00% rate of return, then 50 percent of the profit in excess of 8.00% will be applied as prepayment of the outstanding principal amount of the TIF Note in accordance with the terms of Section 5(b) of the TIF Note. Since all units have not been sold, the lookback has not been completed. We recommend completing the look back at this time since it is unknown if all the units will ever be sold and likely, the holding costs of these units have already depleted a significant portion of the 8% return that the developer was allowed under the original contact. 3. Marketing Covenants. Through the term of the TIF Note, the developer must use its best efforts to market available unit interests in the Cooperative to buyers who reside in the City, to the extent permissible under State and federal fair housing and related laws. 4. Management. Upon completion and through the term of the TIF Note, the City has to approve the property management company. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 66
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 66 Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Aquila Commons District met the requirement when the City approved the Development Agreement with Aquila Senior LLC. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four year rule to increase it by an additional two years for districts that were certified on or after January 1, 2005 and before April 20, 2009. The Aquila Commons district falls within this timeline and the Four Year Rule was deadline becomes April 2011. The district, however, met this requirement by April 2009. Five Year Rule: At least 75% of tax increment revenues generated within the Aquila Commons district must be used to pay for qualified costs within the district. The five year deadline will be April 2010. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Wolfe Lake Redevelopment district fits this timeline and its five year rule is now April 4, 2015. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after April 2009. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 67
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 67 Recommendation: 1. 5-Year Rule. Continue to review if there are any development opportunities to take advantage of the extended 5-year rule to 10-years, which is April 26, 2015. 2. Look Back analysis. We recommend completing the look back at this time since it is unknown if all the units will ever be sold and likely, the holding costs of these units have already depleted a significant portion of the 8% return that the developer was allowed under the original contact. 3. Decertification. This district will need to be decertified when the Note is paid, which is estimated to be August 1, 2018. 4. Pooling Analysis and Use of Funds. It is estimated that there will be approximately $96,000 available at the end of the District. We recommend that the City prepare a plan to utilize these funds for other affordable housing programs in the City. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 68
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 68 City of St. Louis ParkAquila Commons TIF DistrictBasic AssumptionsOption B District: 1311Inflation Rate 0.00%Assumes Last Increment In 2018 Expected TermBaseTotalTax Rate2032 Legal Maximum2004- - 120.9420%Frozen rate114.2710%2005- - 114.2710%200637,250 44,252 107.2660%200723,750 28,126 107.1000%200823,750 77,413 103.0550%200919,000 205,406 107.8190%201019,000 197,292 112.2210%201119,000 175,585 121.8240%201219,000 156,167 130.7480%201319,000 156,278 133.1340%Cash Flow Projections0.00%5.00%FiscalTax Fiscal Tax Other Invest Debt Admin. OtherEndTIF Yr,MonthYearBaseTotalDisparityCapturedRateYearIncrementRevenueIncomeServiceExpenseExpensesBalance5 8/1 2010 19,000 197,292 178,292 112.2210%5.5 2/1 20112010 199,892 - 189,575 5,407 - 104,766 6 8/1 2011 19,000 175,585 - 156,585 114.2710%6.5 2/1 20122011 178,708 191 179,382 8,717 - 95,565 7 8/1 2012 19,000 156,167 - 137,167 114.2710%7.5 2/1 20132012 156,178 130 158,871 3,528 - 89,474 8 8/1 2013 19,000 156,278 - 137,278 114.2710%8.5 2/1 20142013 156,869 - 148,697 7,843 - 89,803 9 8/1 2014 19,000 156,278 - 137,278 114.2710%9.5 2/1 20152014 156,869 - 149,025 7,843 - 89,804 10 8/1 2015 19,000 156,278 - 137,278 114.2710%10.5 2/1 20162015 156,869 - 149,025 7,843 - 89,805 11 8/1 2016 19,000 156,278 - 137,278 114.2710%11.5 2/1 20172016 156,869 - 149,025 7,843 - 89,806 12 8/1 2017 19,000 156,278 - 137,278 114.2710%12.5 2/1 20182017 156,869 - 149,025 7,843 - 89,807 138/1 2018 19,000 156,278 - 137,278 114.2710%13.5 2/1 20192018 156,869 - 142,744 7,843 - 96,088 14 8/1 2019 19,000 156,278 - 137,278 114.2710%14.5 2/1 20202019- - - - 96,088 Total1,720,494797 1,552,125 73,078096,088Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 69
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 69 Maximum amount 1,050,000.00$ Interest Rate 5.75%Note Issued Date 25-May-06Final Payment 2/1/2020Total Tax Tax Increment CumulativeIncrement Available at Tax IncrementDate Interest DueAvailable95.00%PaidNote Balance1,050,000.00$ 8/1/20061,050,000.00$ 2/1/200730,187.50 - - - 1,080,187.50$ 8/1/200731,055.39 - - - 1,111,242.89$ 2/1/200831,948.23 - - - 1,143,191.12$ 8/1/200832,866.74 27,651.20 4,436.45 4,436.45 1,171,621.42$ 2/1/200933,684.12 27,651.20 37,199.16 41,635.61 1,168,106.37$ 8/1/200933,583.06 100,128.78 95,122.34 136,757.95 1,106,567.09$ 2/1/201031,813.80 100,128.78 94,878.67 231,636.62 1,043,502.23$ 8/1/201030,167.36 99,679.83 94,695.84 326,332.45 978,973.75$ 2/1/201128,145.50 99,679.83 94,695.84 421,028.29 912,423.41$ 8/1/201126,232.17 89,143.55 84,686.37 505,714.66 853,969.22$ 2/1/201224,551.61 89,143.55 84,686.37 590,401.03 793,834.46$ 8/1/201222,822.74 78,089.07 74,184.61 664,585.64 742,472.59$ 2/1/201321,346.09 78,089.07 74,184.61 738,770.25 689,634.06$ 8/1/201319,826.98 78,434.00 74,512.30 813,282.55 634,948.74$ 2/1/201418,254.78 78,434.00 74,512.30 887,794.85 578,691.22$ 8/1/201416,637.37 78,434.00 74,512.30 962,307.15 520,816.29$ 2/1/201514,973.47 78,434.00 74,512.30 1,036,819.45 461,277.46$ 8/1/201513,261.73 78,434.00 74,512.30 1,111,331.75 400,026.89$ 2/1/201611,500.77 78,434.00 74,512.30 1,185,844.05 337,015.36$ 8/1/20169,689.19 78,434.00 74,512.30 1,260,356.35 272,192.25$ 2/1/20177,825.53 78,434.00 74,512.31 1,334,868.66 205,505.47$ 8/1/20175,908.28 78,434.00 74,512.31 1,409,380.97 136,901.44$ 2/1/20183,935.92 78,434.00 74,512.31 1,483,893.28 66,325.05$ 8/1/20181,906.85 78,434.00 68,231.89 1,552,125.17 0.00$ TOTAL502,125.18$ 1,652,158.84$ 1,552,125.17$ Economic Development AuthorityPrincipal Ledger - Stonebridge Development Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 70
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 70 Elmwood Village Description: Elmwood Village (County #1312) is a renewal and renovation district established on August 2, 2004 and is located within the Redevelopment Project No 1. Originally the district encompassed seventeen (17) parcels of land and was established to facilitate the construction of various public improvements related to the construction of housing and commercial facilities (a portion of this district is derived from parcels decertified from the Trunk Highway 7 TIF District). The District was initially established to assist Rottlund Homes with additional site improvements and land acquisition costs associated with a condominium/townhome project on the old Quadian site. Rottlund was issued a PAYGO note in the amount of $790,000 at 5.75% interest. The note was paid off on February 1, 2010 and the TIF generated from these parcels can be utilized by the City for other qualified TIF costs. In 2009, Grecco Development purchased a parcel of land from Rottlund for redevelopment into a vertical mixed-use development consisting of 115 units of senior housing over approximately 10,000 sq/ft of retail. On June 7, 2010 the EDA approved a development agreement with Wooddale Catered Living LLC to provide them a PAYGO note in the amount of $490,000. The project is nearly complete, but to date (April 2013) the TIF note has not yet been issued since the developer has not yet provided the City with the required documentation for qualified costs. Once these are received, the TIF Note will be issued. On February 21, 2006 this district was modified to add eight additional parcels. The parcels were part of the Hoigaards redevelopment project which consists of a 220-unit market rate apartment building, 100 unit senior independent apartment building, 22 rental townhomes, a mixed use residential development consisting of 74 condos (temporarily turned rental) over 25,000 square feet retail and a regional storm pond. The City issued short-term taxable tax increment revenue notes to finance costs for the mixed use building and the market rate apartment building. The first note was issued in 2006 in the amount of $1,663,000 and the second note was issued in 2007 in the amount Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 71
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 71 of $2,540,000. On October 21, 2010, the EDA issued long-term tax-exempt tax increment revenue bonds to refinance the short-term notes in the amount of $3,495,000 (the A bonds). These revenue bonds are paid from tax increment generated from the Camarata Apartments (220 units) and the Harmony Vista condos/Apartments and retail. Since these are revenue bonds, the EDA does not carry any legal liability to make payments on the bonds if the tax increment generated is insufficient to do so. The bonds were sized with 125% debt service coverage and a debt service reserve fund in the amount of $165,875 was funded with bond proceeds. In addition, the EDA issued a subordinated TIF note in the amount of $935,000 to Northern Holding II, LLC on the same date. This note is paid from increment generated from the Camarata Apartments and Harmony Vista Condos/Apartments and retail on a subordinate basis to the A note (paid from available increment not needed to pay debt service on the A bonds). Construction of the last two phases began in 2012. In early 2013, both the Adagio (100-unit senior apartment) and the Medly Row rental townhomes (26-units) were completed. It is expected that the developer will request that the City issue a tax exempt tax increment revenue bond to refinance the short-term notes that were issued for the project. Due to the reallocation of the market value homestead credit to market value homestead exclusion in 2011, the tax capacities dropped for the pay 2012 taxes on the Rottlund town homes, thus reducing the amount of TIF generated for use by the EDA. Adopted:…………………….….08/02/2004 Requested Date:…….……….…12/20/2004 Certified Date:………….……....05/31/2005 First Increment……………….……07/2007 Anticipated Decertification…….12/31/2023 Required Decertification……….12/31/2029 Modifications:………………….02/21/2006 10/19/2009 Special Legislation: In 2009 the City received special legislation to extend the term of the district by 6 years. The duration of the district is now 22 years, versus the original 16 years (Laws of 2009, Chapter 88, Article 5, Section 19). The reason for the extension was to utilize the additional TIF revenue generated to complete improvements to Highway 100 and Wooddale Avenue Intersection (see language below): Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 72
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 72 Sec. 19. CITY OF ST. LOUIS PARK; EXTENSION OF TAX INCREMENT DISTRICT DURATION. Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the duration of the Elmwood Village Tax Increment Financing District is extended to 22 years after receipt by the St. Louis Park Economic Development Authority of the first increment from the district. Former and Current PID Numbers: Former PID # New PID #New Use06-028-24-32-002006-028-24-32-0024 and 16-117-21-34-0355Detention Pond (24) and Commercial component of Harmony Vista (including triangular parking parcel)16-117-21-31-006516-117-21-31-0077Medly Row Town Homes (yet to be built)16-117-21-31-006606-028-24-32-0023Camerata Apartments16-117-21-34-001816-117-21-34-0340Adagio Condos (yet to be built)16-117-21-34-007516-117-21-34-003516-117-21-34-0017Same as Former PIDExisting Bldg - No Redev16-117-21-34-0015Same as Former PIDExisting Bldg - No Redev16-117-21-34-002716-117-21-34-000116-117-21-33-010416-117-21-33-0107 through 16-117-21-33-0196; & 16-117-21-34-0146 through 16-117-21-34-0194Senior (55+) Condos16-117-21-34-009516-117-21-34-0218 through 16-117-21-34-0339Village Lofts-Condos16-117-21-34-009616-117-21-34-0100 through 16-117-21-34-0119Elmwood Village-Condos16-117-21-34-009716-117-21-34-0120 through 16-117-21-34-0137Elmwood Village-Condos16-117-21-34-009816-117-21-34-0195 through 16-117-21-34-0217Elmwood Village-Condos16-117-21-33-010516-117-21-33-0197 through 16-117-21-33-0212Elmwood Village-Condos16-117-21-33-0106Same as Former PIDLuther Car Dealership16-117-21-34-0099Same as Former PIDCommon Area (Condos/TH)16-117-21-31-0071Same as Former PIDExisting Building - Industrial (EDA Owned)16-117-21-32-0057Same as Former PIDExisting Building - Office16-117-21-33-0089Same as Former PIDEDA Owned Vacant Land16-117-21-33-0091Same as Former PIDEDA Owned Parking16-117-21-33-0092Same as Former PIDEDA Owned Vacant Land16-117-21-33-0094Same as Former PIDEDA Owned Vacant Land16-117-21-34-003421-117-21-21-005316-117-21-34-0603Center Park16-117-21-34-0355 and 16-117-21-34-0356 thru 16-117-21-34-0604Harmony Vista Condos (includes garage stalls and hallways)16-117-21-34-0607Woodale Catered Living Apts Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 73
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 73 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 114.2710% Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a renewal and renovation district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. In addition, pursuant to the TIF plan the dollars can be utilized for improvements of a grade separated crossing for Wooddale Avenue at Highway 100. Obligations: There are two Tax Exempt TIF Revenue Bonds, one PAYGO Note and one Interfund Loan that was issued for the projects within this district as follows: $3,495,000 Tax Exempt TIF Revenue Bond, Series 2010A. This Bond was issued on October 21, 2010 and sold to third party investors. The EDA has pledged 95% of the tax increment revenues from the project. $935,000 Tax Exempt TIF Revenue Bond, Series 2010B. This Bond was issued on October 21, 2010 and was privately placed. This Bond is subordinated to the 2010A bonds and is paid from 95% of the tax increment revenues from the project. $490,000 at 4.6% interest. This Note is yet to be issued to Wooddale Catered Living, and construction is completed. The EDA has pledged 95% of the tax increment revenues from the project. $3,562,056 Interfund Loan for site improvements It is anticipated that the following obligations will be issued in the near future: $3,800,000 GO TIF bond to pay for various public and road improvements along Highway 100, Wooddale Avenue and 36th Street. The EDA has pledged 100% of the tax increment revenues from the district extension. Approximately $1,000,000 Tax Exempt TIF Revenue Bond, Series 2013. This Bond would be issued in 2013 to pay for costs associated with the Adagio Senior Apartments and Medley Row Town Homes and will be sold to third party investors. The EDA will pledged 95% of the tax increment revenues from the project. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 74
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 74 Other Development Agreement Compliance: ROTTLUND 1. Look Back. Within 60 days after closing to third parties of the final unit a look back would be completed. If, based on such review, the actual profit for the Developer exceeds a 12% rate of return, then 50 percent of excess amount of profit was to be applied as prepayment of the outstanding principal amount of the Note. The look back was completed in 2008 and the developer‘s expected rate of return was below the 12% threshold so there was no excess profit to prepay the TIF note. HOIGAARD VILLAGE 1. Association and Apartment Covenants. The City shall be entitled to review and approve the articles, bylaws and declaration of restrictive covenants for the condominium association and sub-associations 2. Special Service District. Upon written request by the City, the developer will submit required petition to establish a special service district encompassing the redevelopment property and any other property identified by the City, and to levy a special service charge. WOODDALE CATERED LIVING LLC. 1. Termination of right to Note. All conditions for delivery of the Note must be met by no later than March 31, 2012, which date is less than ten (10) years after the date of certification of the TIF District by the County and complies with the so-called five-year rule under Section 469.1763, subd. 3(c) of the TIF Act, as amended during the 2009 State legislative session. 2. Minimum Assessment Agreement. The minimum market value as of January 2, 2012 shall be $6,825,000 and the minimum market value as of January 2, 2013 shall be $13,650,000. The Assessment Agreement shall be in place until the TIF Note is paid in full or the TIF District terminates, whichever is sooner. 3. Look Back. Within 60 days after the earliest of (i) stabilization (95% of the rental units are leased); (2) sale of property or; (3) three years after the issuance of the CO, the developer will provide the City the financial data to calculate the actual rate of return to the developer. If, based on such review, the actual profit for the developer exceeds a 20% internal rate of return, then 50% of the excess percentage of the profit will be applied as prepayment of the outstanding principal amount of the TIF Note. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 75
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 75 4. Management. The Developer shall at all times engage a property management company with substantial experience in operating mixed use developments, subject to approval by the Authority, which approval will not be unreasonably withheld. The Developer will annually submit evidence of such management by February 1 of each year. 5. Plaza. The Developer shall construct an outdoor Plaza as depicted in the Site Plan. 6. Special Service District. Upon written request by the City, the developer will submit required petition to renew any levy of special service charges for Special Service District No. 6. By no later than December 31, 2011, the developer shall submit to the City for review and approval a plan for maintenance and operation of all pedestrian and landscaping improvements located within the redevelopment property Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Elmwood District met the requirement when the City approved the Development Agreement with Union Land II LLC in March 2006. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The Elmwood Renewal and Renovation district fits this timeline and its four year rule is now be May 2011. The City reported on the four year activity in November 2009 and reported to the County that two parcels did not meet the deadline for qualifying activity. They were 16-117-21-34-0034 (Center Park) and 16-117-21-21-0053 (Center Park). Parcel 16-117-21-34-0034 was reinstated to the district for payable 2011. Parcel 16-117-21-21-0053 has not been reinstated but is not necessary since it will remain a tax exempt use. Five Year Rule: At least 80% of tax increment revenues generated within Elmwood Village must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Elmwood Village Renewal and Renovation district fits this timeline and the five year rule is now May 31, 2015 for the original area and February 21, 2016 for the modified area (Hoigaards redevelopment area). Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 76
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 76 Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after May 2010. Recommendation: 1. 5-Year Rule. Continue to review if there are any development opportunities to take advantage of the extended 5-year rule to 10-years, which is May 31, 2015 for the original area and February 21, 2016 for the modified area (Hoigaards redevelopment area). 2. Use of Increment From Legislative Extension. There is approximately $370,000 of unobligated tax increment available per year for use in accordance with the TIF Plan for repayment on the interfund loan for site improvements and public improvements related to Highway 100 and Woodale and 36th Avenues. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 77
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 77 City of St. Louis ParkElmwood Village Commons TIF DistrictBasic AssumptionsOption B District:1312Inflation Rate0.00%Assumes Last Increment In2029 Legal MaximumBaseTotalTax RateDuration extended through special legislation2004- - 120.9420%Frozen rate 114.2710%2005134,088 134,088 114.2710%2006134,088 134,088 107.2660%2007242,706 459,358 107.1000%2008242,706 737,994 103.0550%2009174,476 1,110,752 107.8190%2010174,476 1,198,262 112.2210%2011174,476 1,057,764 121.8240%2012174,476 971,720 130.7480%2013168,836 1,003,051 133.1340%Cash Flow Projections0.00%5.00%Fiscal Tax Fiscal Tax Other Invest Debt 2007 Tax 2006 Tax 2010A 2010B Wooddale Admin. Other EndTIF Yr,MonthYearBaseTotalDisparityCapturedRateYearIncrementRevenueIncomeServiceIFLIncrement NoteIncrement NoteHOA BondsHOA BondsCateringExpenseExpensesBalance3.5 8/1 2010 174,476 1,198,262 (17,454) 1,006,332 112.2210%4 2/1 20112010 1,126,135 5,242,348 8,499 79,266 1,771,654 2,762,592 200,032 4,091,912 (3,131,237) 4.5 8/1 2011 174,476 1,057,764 (18,679) 864,609 114.2710%5 2/1 20122011 985,624 5,497 - 131,928 - - 380,979 11,608 395,054 (3,059,685) 5.5 8/1 2012 174,476 971,720 (3,003) 794,241 114.2710%6 2/1 20132012 902,424 6,774 - 131,927 - - 338,487 155,833 9,205 356,136 (3,142,075) 6.5 8/1 2013 168,836 1,003,051 (1,807) 832,408 114.2710%7 2/1 20142013 951,201 - - 125,682 - - 333,237 72,169 47,560 - (2,769,522) 7.5 8/1 2014 168,836 1,003,051 (1,807) 832,408 114.2710%8 2/1 20152014 951,201 - - 113,909 - - 341,982 75,773 47,560 - (2,397,546) 8.5 8/1 2015 168,836 1,003,051 (1,807) 832,408 114.2710%9 2/1 20162015 951,201 - - 101,666 - - 345,022 70,516 47,560 - (2,011,109) 9.5 8/1 2016 168,836 1,003,051 (1,807) 832,408 114.2710%10 2/1 20172016 951,201 - - 88,933 - - 346,362 70,910 47,560 - (1,613,672) 10.5 8/1 2017 168,836 1,003,051 (1,807) 832,408 114.2710%11 2/1 20182017 951,201 - - 75,690 - - 356,762 68,039 47,560 - (1,210,522) 11.5 8/1 2018 168,836 1,003,051 (1,807) 832,408 114.2710%12 2/1 20192018 951,201 - - 61,917 - - 365,869 60,917 47,560 - (795,585) 12.5 8/1 2019 168,836 1,003,051 (1,807) 832,408 114.2710%13 2/1 20202019 951,201 - - 47,594 - - 367,500 60,347 47,560 - (367,385) 13.5 8/1 2020 168,836 1,003,051 (1,807) 832,408 114.2710%14 2/1 20212020 951,201 - - 32,698 - - 377,625 52,005 47,560 - 73,928 14.5 8/1 2021 168,836 1,003,051 (1,807) 832,408 114.2710%15 2/1 20222021 951,201 - - 17,206 - - 381,625 49,580 47,560 - 529,158 15.5 8/1 2022 168,836 1,003,051 (1,807) 832,408 114.2710%16 2/1 20232022 951,201 - - 1,094 - - 389,625 48,058 47,560 - 994,022 16.5 8/1 2023 168,836 1,003,051 (1,807) 832,408 114.2710%17 2/1 20242023 951,201 - - - - - 328,000 40,348 47,560 - 1,529,315 17.5 8/1 2024 168,836 1,003,051 (1,807) 832,408 114.2710%18 2/1 20252024- - - - - - - - 1,529,315 18.5 8/1 2025 168,836 1,003,051 (1,807) 832,408 114.2710%19 2/1 20262025 - - - - - - - - - 1,529,315 19.5 8/1 2026 168,836 1,003,051 (1,807) 832,408 114.2710%20 2/1 20272026 - - - - - - - - - 1,529,315 20.5 8/1 2027 168,836 1,003,051 (1,807) 832,408 114.2710%21 2/1 20282027 - - - - - - - - - 1,529,315 21.5 8/1 2028 168,836 1,003,051 (1,807) 832,408 114.2710%22 2/1 20292028 - - - - - - - - - 1,529,315 22.5 8/1 2029 168,836 1,003,051 (1,807) 832,408 114.2710%23 2/1 20302029 - - - - - - - - - 1,529,315 Total15,166,650111,454 956,052 930,244 1,771,654 2,762,592 4,653,075 824,49500797,733 7,590,871 1,529,315Tax Capacity(Per TIF PlanStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 78
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 78 Highway 7 Corporate Center Description: Highway 7 Business Center (redevelopment district) and the Highway 7 Hazardous Substance Subdistrict (County #1313) were established on May 15, 2006 and is located within the Redevelopment Project No 1. Originally the district encompassed five (5) parcels of land and was established to facilitate the cleanup of contaminated land and the construction of a 78,000 square foot multi-tenant office/showroom/tech building. The City also received environmental grant funds from Hennepin County, the Minnesota Department of Employee and Economic Development and the Metropolitan Council in the amount of $4,950,000, $1,904,456 and $967,000 respectively. A development agreement was signed on June 28, 2006 with the Highway 7 Business Center LLC in which the developer agreed to construct a 78,000 square foot multi-tenant industrial building, including all related parking improvements. Adopted………………….... 05/15/2006 Requested Date……………. 06/29/2006 Certified Date………….….. 07/17/2006 First Increment…………..….… 07/2007 Decertifies…………….…… 12/31/2032 Before AfterStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 79
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 79 Former and Current PID Numbers: Former PIDFormer UseNew PIDNew Use17-117-21-44-0002Vacant Land17-117-21-44-0023Multi Tenant17-117-21-44-0024LBF17-117-21-44-0060 Caryn International School17-117-21-44-0065Golden AutoHwy 7 Corporate Center17-117-21-44-006917-117-21-44-0070 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 107.2660% Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. MN Statute 469.176 subd. 4e specifies the activities on which tax increment from a hazardous substance subdistrict may be spent. In general, tax increment must be spent only on removing hazardous substances from the site, pollution testing and related administrative and legal costs. Obligations: There are four (4) PAYGO notes, totaling $2,555,000 that were issued for this project on July 24, 2008 (Note A and B) and October 6, 2008 (Note C & D) as follows: $2,100,000 PAYGO Note A for Highway Business center LLC $360,000 PAYGO Note B for Highway Business Center LLC $72,000 PAYGO Note C for Highway Business Center LLC $23,000 PAYGO Note D for Highway Business Center LLC Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 80
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 80 These Notes carry a 1% interest rate and are paid from 95% of the available increment. The available increment is prorated semi-annually with the TIF payments are prorated to Notes A and B first before payment is made to Notes C and D 86% being paid to the A Note and 14% being paid to the B Note. It is anticipated that the Notes A and B will be repaid in 2025 and Notes C and D will be repaid in 2026 and 2027. Other Development Agreement Compliance: 1. Railroad Easement. By December 31, 2006, the Developer agrees to execute and deliver to the City the Railroad Easement Agreement. Under the Easement Agreement, the Developer grants to the City an easement for railroad right of way purposes on a portion of the property. 2. Look Back. (a) Within 60 days before any Transfer of the property (excluding any Transfer to an Affiliate) that occurs within five years after the date of issuance of the Certificate of Completion, the Developer must deliver to the EDA evidence of its annualized cumulative internal rate of return from the property (the “IRR”), calculated as of the date of closing on the transfer. The IRR shall be calculated with equity, revenues and expenses all determined in accordance with generally accepted accounting principles, provided that the amount of Developer’s equity must exclude the principal amount of the Notes, and any developer’s fee in excess of 7.0 percent of total development costs. The amount by which the IRR exceeds 12.0 percent is a percentage referred to as “Excess Percentage.” The Excess Percentage, multiplied by Redeveloper’s equity (as calculated for purposes of determining the IRR), is the “Participation Amount.” The Redeveloper must pay 50 percent of the Participation Amount to the Authority upon closing on the Transfer. If the Developer does not affect a Transfer within the five-year period the Developer’s obligation under this Section is deemed terminated. The CO was issued on November 21, 2007, which means the 5-year period would expire on November 21, 2012. In June 2012 the City completed the required lookback calculation since the property was going to be sold in July 2012. It was determined that the development did not cash flow as expected and therefore had a negative IRR. There was no reduction in the principal amount of the TIF Notes due to this and the property was sold to Ax Rer LP (Artis Reit). 3. Assessment Agreement. The Developer shall execute a Minimum Assessment Agreement (MAA). The minimum market value shall be $6,300,000 as of January 2, 2008 and each January 2 thereafter, notwithstanding the progress of construction of the Minimum Improvements by such date. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Highway 7 Corporate Center district met the requirement when the City approved the Development Agreement with Highway Business Center LLC in June 2006. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four year rule Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 81
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 81 limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The Highway 7 Corporate Center Redevelopment district fits this timeline and its four year rule is now July 17, 2012. Five Year Rule: At least 75% of tax increment revenues generated within the district must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years from the certification date for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Highway 7 Corporate Center Redevelopment district fits this timeline and its five year rule is now July 17, 2016. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after July 2012. Recommendations: None at this time. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 82
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 82 City of St. Louis ParkHighway 7 Business Center TIF DistrictBasic AssumptionsOption B District:1313Inflation Rate0.00%Assumes Last Increment In2032 Expected termBaseTotalTax Rate2032 Legal Maximum2004- - 120.9420%Frozen rate107.2660%2005- - 114.2710%2006- - 107.2660%20070 61,526 107.2660%200853,204 175,096 103.0550%200953,204 182,696 107.2660%201053,204 190,576 107.2660%201153,204 190,576 121.8240%201253,504 182,676 130.7480%201353,504 182,676 133.1340%Cash Flow Projections0.00%5.00%FiscalTax Fiscal Tax Other InvestAdmin. OtherEndTIF Yr,MonthYearBaseTotalDisparityCapturedRateYearIncrementRevenueIncomeNote ANote BNote CNote DIFLExpenseExpensesBalance3.5 8/1 2010190,576 (42,534) 148,042 107.2660%4 2/1 20112010 158,228 - 126,260 21,645 5,603 - 14,963 4.5 8/1 2011190,576 (48,774) 141,802 107.2660%5 2/1 20122011 151,557 - 125,614 21,534 5,879 - 13,493 5.5 8/1 2012 - 182,676 (45,206) 137,470 107.2660%6 2/1 20132012 146,928 - 121,032 20,748 4,161 - 14,479 6.5 8/1 2013 - 182,676 (44,107) 138,569 107.2660%7 2/1 20142013 148,637 - 119,631 20,508 7,432 - 15,546 7.5 8/1 2014 - 182,676 (44,107) 138,569 107.2660%8 2/1 20152014 148,637 - 120,107 20,590 7,432 - 16,054 8.5 8/1 2015 - 182,676 (44,107) 138,569 107.2660%9 2/1 20162015 148,637 - 120,107 20,590 7,432 - 16,562 9.5 8/1 2016 - 182,676 (44,107) 138,569 107.2660%10 2/1 20172016 148,637 - 120,107 20,590 7,432 - 17,071 10.5 8/1 2017 - 182,676 (44,107) 138,569 107.2660%11 2/1 20182017148,637 - 120,107 20,590 7,432 - 17,579 11.5 8/1 2018 - 182,676 (44,107) 138,569 107.2660%12 2/1 20192018 148,637 - 120,107 20,590 7,432 - 18,087 12.5 8/1 2019 - 182,676 (44,107) 138,569 107.2660%13 2/1 20202019 148,637 - 120,107 20,590 7,432 - 18,596 13.5 8/1 2020 - 182,676 (44,107) 138,569 107.2660%14 2/1 20212020 148,637 - 120,107 20,590 7,432 - 19,104 14.5 8/1 2021 - 182,676 (44,107) 138,569 107.2660%15 2/1 20222021 148,637 - 120,107 20,590 7,432 - 19,612 15.5 8/1 2022 - 182,676 (44,107) 138,569 107.2660%16 2/1 20232022 148,637 - 120,107 20,590 7,432 - 20,121 16.5 8/1 2023 - 182,676 (44,107) 138,569 107.2660%17 2/1 20242023 148,637 - 120,107 20,590 7,432 - 20,629 17.5 8/1 2024 - 182,676 (44,107) 138,569 107.2660%18 2/1 20252024 148,637 - 120,107 20,590 7,432 - 21,137 18.5 8/1 2025 - 182,676 (44,107) 138,569 107.2660%19 2/1 20262025 148,637 - 120,107 20,590 7,432 - 21,646 19.5 8/1 2026 - 182,676 (44,107) 138,569 107.2660%20 2/1 20272026 148,637 - 120,107 20,590 7,432 - 22,154 20.5 8/1 2027 - 182,676 (44,107) 138,569 107.2660%21 2/1 20282027 148,637 - 3,986 683 86,727 27,804 7,432 - 44,159 21.5 8/1 2028 - 182,676 (44,107) 138,569 107.2660%22 2/1 20292028 148,637 - 141,206 7,432 - 44,159 22.5 8/1 2029 - 182,676 (44,107) 138,569 107.2660%23 2/1 20302029 148,637 - 141,206 7,432 - 44,159 23.5 8/1 2030 - 182,676 (44,107) 138,569 107.2660%24 2/1 20312030 148,637 - 141,206 7,432 - 44,159 24.5 8/1 2031 - 182,676 (44,107) 138,569 107.2660%25 2/1 20322031 148,637 - 141,206 7,432 - 44,159 25.58/1 2032 - 182,676 (44,107) 138,569 107.2660%26 2/1 20332032 148,637 - 158,201 7,432 - 27,164 26.5 8/1 2033 - 182,676 (44,107) 138,569 107.2660%27 2/1 20342033- - - 27,164 Total3,791,293 7,822,2481,036 2,289,256 392,444 86,727 27,804 723,023 219,841 7,848,31827,164Tax CapacityDebt Service Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 83
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 83 Note amount 2,100,000.00$ Interest Rate 1.00%Note Issue Date 7/24/2008Final Payment Total Tax Tax Increment Increment Prorated toDate Interest DueAvailable Note ATotal Payments Note Balance2/1/2006 - - 2,100,000.00$ 8/1/2006- 2,100,000.00$ 2/1/2007- 2,100,000.00$ 8/1/2007- 2,100,000.00$ 2/1/2008- 2,100,000.00$ 8/1/2008 350.00 136,025.07 110,313.17 110,313.17 1,990,036.83$ 2/1/2009 9,950.18 72,655.77 58,922.06 169,235.23 1,941,064.96$ 8/1/2009 9,705.32 72,747.08 62,101.17 231,336.40 1,888,669.11$ 2/1/2010 9,443.35 72,747.08 62,101.17 293,437.57 1,836,011.29$ 8/1/2010 9,231.06 75,158.02 64,159.29 357,596.85 1,781,083.06$ 2/1/2011 8,905.42 75,158.02 64,159.29 421,756.14 1,725,829.19$ 8/1/2011 8,629.15 71,989.90 61,454.79 483,210.93 1,673,003.54$ 2/1/2012 8,365.02 71,989.90 61,454.79 544,665.72 1,619,913.77$ 8/1/2012 8,099.57 69,790.70 59,577.43 604,243.15 1,568,435.91$ 2/1/2013 7,842.18 69,790.70 59,577.43 663,820.58 1,516,700.66$ 8/1/2013 7,583.50 70,348.61 60,053.69 723,874.27 1,464,230.47$ 2/1/2014 7,321.15 70,348.61 60,053.69 783,927.96 1,411,497.94$ 8/1/2014 7,057.49 70,348.61 60,053.69 843,981.65 1,358,501.74$ 2/1/2015 6,792.51 70,348.61 60,053.69 904,035.33 1,305,240.56$ 8/1/20156,526.20 70,348.61 60,053.69 964,089.02 1,251,713.07$ 2/1/20166,258.57 70,348.61 60,053.69 1,024,142.71 1,197,917.95$ 8/1/20165,989.59 70,348.61 60,053.69 1,084,196.40 1,143,853.85$ 2/1/20175,719.27 70,348.61 60,053.69 1,144,250.09 1,089,519.43$ 8/1/20175,447.60 70,348.61 60,053.69 1,204,303.78 1,034,913.34$ 2/1/20185,174.57 70,348.61 60,053.69 1,264,357.46 980,034.22$ 8/1/20184,900.17 70,348.61 60,053.69 1,324,411.15 924,880.70$ 2/1/20194,624.40 70,348.61 60,053.69 1,384,464.84 869,451.42$ 8/1/20194,347.26 70,348.61 60,053.69 1,444,518.53 813,744.99$ 2/1/20204,068.72 70,348.61 60,053.69 1,504,572.22 757,760.02$ 8/1/20203,788.80 70,348.61 60,053.69 1,564,625.91 701,495.14$ 2/1/20213,507.48 70,348.61 60,053.69 1,624,679.59 644,948.92$ 8/1/20213,224.74 70,348.61 60,053.69 1,684,733.28 588,119.98$ 2/1/20222,940.60 70,348.61 60,053.69 1,744,786.97 531,006.89$ 8/1/20222,655.03 70,348.61 60,053.69 1,804,840.66 473,608.24$ 2/1/20232,368.04 70,348.61 60,053.69 1,864,894.35 415,922.59$ 8/1/20232,079.61 70,348.61 60,053.69 1,924,948.03 357,948.51$ 2/1/20241,789.74 70,348.61 60,053.69 1,985,001.72 299,684.57$ 8/1/20241,498.42 70,348.61 60,053.69 2,045,055.41 241,129.30$ 2/1/20251,205.65 70,348.61 60,053.69 2,105,109.10 182,281.26$ 8/1/2025911.41 70,348.61 60,053.69 2,165,162.79 123,138.98$ 2/1/2026615.69 70,348.61 60,053.69 2,225,216.48 63,700.99$ 8/1/2026318.50 70,348.61 60,053.69 2,285,270.16 3,965.80$ 2/1/202719.83 70,348.61 3,985.63 2,289,255.79 0.00$ TOTAL189,255.80 2,757,813.23 2,289,255.79 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Highway 7 Corporate CenterNOTE A - Hwy 7 Business Center LLC Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 84
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 84 Maximum amount 360,000.00$ Interest Rate 1.00%Note Issue Date 7/24/2008Final Payment Total Tax Tax Increment Increment Prorated to Date Interest DueAvailable Note B Total Payments Note Balance2/1/2006- 360,000.00$ 8/1/2006- 360,000.00$ 2/1/2007- 360,000.00$ 8/1/2007- 360,000.00$ 2/1/2008- 360,000.00$ 8/1/200860.00 18,910.83 18,910.83 341,149.17$ 2/1/20091,705.75 10,100.92 29,011.75 332,753.99$ 8/1/20091,663.77 10,645.91 39,657.67 323,771.85$ 2/1/20101,618.86 10,645.91 50,303.58 314,744.79$ 8/1/20101,582.47 10,998.73 61,302.32 305,328.52$ 2/1/20111,526.64 10,998.73 72,301.05 295,856.43$ 8/1/20111,479.28 10,535.11 82,836.16 286,800.61$ 2/1/20121,434.00 10,535.11 93,371.27 277,699.50$ 8/1/20121,388.50 10,213.27 103,584.54 268,874.73$ 2/1/20131,344.37 10,213.27 113,797.81 260,005.83$ 8/1/20131,300.03 10,294.92 124,092.73 251,010.94$ 2/1/20141,255.05 10,294.92 134,387.65 241,971.07$ 8/1/20141,209.86 10,294.92 144,682.57 232,886.01$ 2/1/20151,164.43 10,294.92 154,977.49 223,755.52$ 8/1/20151,118.78 10,294.92 165,272.40 214,579.38$ 2/1/20161,072.90 10,294.92 175,567.32 205,357.36$ 8/1/20161,026.79 10,294.92 185,862.24 196,089.23$ 2/1/2017980.45 10,294.92 196,157.16 186,774.76$ 8/1/2017933.87 10,294.92 206,452.08 177,413.72$ 2/1/2018887.07 10,294.92 216,746.99 168,005.87$ 8/1/2018840.03 10,294.92 227,041.91 158,550.98$ 2/1/2019792.75 10,294.92 237,336.83 149,048.81$ 8/1/2019745.24 10,294.92 247,631.75 139,499.14$ 2/1/2020697.50 10,294.92 257,926.67 129,901.72$ 8/1/2020649.51 10,294.92 268,221.58 120,256.31$ 2/1/2021601.28 10,294.92 278,516.50 110,562.67$ 8/1/2021552.81 10,294.92 288,811.42 100,820.57$ 2/1/2022504.10 10,294.92 299,106.34 91,029.75$ 8/1/2022455.15 10,294.92 309,401.26 81,189.98$ 2/1/2023405.95 10,294.92 319,696.17 71,301.02$ 8/1/2023356.51 10,294.92 329,991.09 61,362.60$ 2/1/2024306.81 10,294.92 340,286.01 51,374.50$ 8/1/2024256.87 10,294.92 350,580.93 41,336.45$ 2/1/2025206.68 10,294.92 360,875.85 31,248.22$ 8/1/2025156.24 10,294.92 371,170.76 21,109.54$ 2/1/2026105.55 10,294.92 381,465.68 10,920.17$ 8/1/202654.60 10,294.92 391,760.60 679.85$ 2/1/20273.40 683.25 392,443.85 0.00$ TOTAL32,443.85 - 392,443.85 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Highway 7 Corporate CenterNOTE B - Hwy 7 Business Center LLC Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 85
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 85 Maximum amount 72,000.00$ Interest Rate 1.00%Accrual date 10/6/2008Total Tax Tax Increment Increment Available atDate Interest DueAvailable 95.00% Total Payments Note Balance2/1/2006 - - 72,000.00$ 8/1/2006 - - 72,000.00$ 2/1/2007 - - 72,000.00$ 8/1/2007 - - 72,000.00$ 2/1/2008 - - 72,000.00$ 8/1/2008 12.00 - - 72,012.00$ 2/1/2009360.06 - - 72,372.06$ 8/1/2009361.86 - - 72,733.92$ 2/1/2010363.67 - - 73,097.59$ 8/1/2010365.49 - - 73,463.08$ 2/1/2011367.32 - - 73,830.39$ 8/1/2011369.15 - - 74,199.55$ 2/1/2012371.00 - - 74,570.54$ 8/1/2012372.85 - - 74,943.40$ 2/1/2013374.72 - - 75,318.11$ 8/1/2013376.59 - - 75,694.70$ 2/1/2014378.47 - - 76,073.18$ 8/1/2014380.37 - - 76,453.54$ 2/1/2015382.27 - - 76,835.81$ 8/1/2015384.18 - - 77,219.99$ 2/1/2016386.10 - - 77,606.09$ 8/1/2016388.03 - - 77,994.12$ 2/1/2017389.97 - - 78,384.09$ 8/1/2017391.92 - - 78,776.01$ 2/1/2018393.88 - - 79,169.89$ 8/1/2018395.85 - - 79,565.74$ 2/1/2019397.83 - - 79,963.57$ 8/1/2019399.82 - - 80,363.39$ 2/1/2020401.82 - - 80,765.20$ 8/1/2020403.83 - - 81,169.03$ 2/1/2021405.85 - - 81,574.87$ 8/1/2021407.87 - - 81,982.75$ 2/1/2022409.91 - - 82,392.66$ 8/1/2022411.96 - - 82,804.63$ 2/1/2023414.02 - - 83,218.65$ 8/1/2023416.09 - - 83,634.74$ 2/1/2024418.17 - - 84,052.92$ 8/1/2024420.26 - - 84,473.18$ 2/1/2025422.37 - - 84,895.55$ 8/1/2025424.48 - - 85,320.02$ 2/1/2026426.60 - - 85,746.62$ 8/1/2026428.73 - 86,175.36$ 2/1/2027430.88 65,702.95$ 62,417.80 62,417.80 24,188.43$ 8/1/2027120.94 70,348.61$ 24,309.37 86,727.17 0.00$ TOTAL14,727.18 136,051.56 86,727.17 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Highway 7 Corporate CenterNOTE C - Hwy 7 Business Center LLC Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 86
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 86 Maximum amount 23,000.00$ Interest Rate 1.00%Accrual date 10/6/2008Total Tax Tax Increment Increment Available atDate Interest DueAvailable 95.00% Total Payments Note Balance2/1/2006- - 23,000.00$ 8/1/2006- - 23,000.00$ 2/1/2007- - 23,000.00$ 8/1/2007- - 23,000.00$ 2/1/2008- - 23,000.00$ 8/1/20083.83 - - 23,003.83$ 2/1/2009115.02 - - 23,118.85$ 8/1/2009115.59 - - 23,234.45$ 2/1/2010116.17 - - 23,350.62$ 8/1/2010116.75 - - 23,467.37$ 2/1/2011117.34 - - 23,584.71$ 8/1/2011117.92 - - 23,702.63$ 2/1/2012118.51 - - 23,821.15$ 8/1/2012119.11 - - 23,940.25$ 2/1/2013119.70 - - 24,059.95$ 8/1/2013120.30 - - 24,180.25$ 2/1/2014120.90 - - 24,301.15$ 8/1/2014121.51 - - 24,422.66$ 2/1/2015122.11 - - 24,544.77$ 8/1/2015122.72 - - 24,667.50$ 2/1/2016123.34 - - 24,790.83$ 8/1/2016123.95 - - 24,914.79$ 2/1/2017124.57 - - 25,039.36$ 8/1/2017125.20 - - 25,164.56$ 2/1/2018125.82 - - 25,290.38$ 8/1/2018126.45 - - 25,416.83$ 2/1/2019127.08 - - 25,543.92$ 8/1/2019127.72 - - 25,671.64$ 2/1/2020128.36 - - 25,800.00$ 8/1/2020129.00 - - 25,929.00$ 2/1/2021129.64 - - 26,058.64$ 8/1/2021130.29 - - 26,188.93$ 2/1/2022130.94 - - 26,319.88$ 8/1/2022131.60 - - 26,451.48$ 2/1/2023132.26 - - 26,583.74$ 8/1/2023132.92 - - 26,716.65$ 2/1/2024133.58 - - 26,850.24$ 8/1/2024134.25 - - 26,984.49$ 2/1/2025134.92 - - 27,119.41$ 8/1/2025135.60 - - 27,255.01$ 2/1/2026136.28 - - 27,391.28$ 8/1/2026136.96 - - 27,528.24$ 2/1/2027137.64 - - 27,665.88$ 8/1/2027138.33 46,039.24$ 27,804.21 27,804.21 (0.00)$ TOTAL4,804.21 46,039.24 27,804.21 City of St. Louis ParkEconomic Development AuthorityPrincipal Ledger - Highway 7 Corporate CenterNOTE D - Hwy 7 Business Center LLC Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 87
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 87 West End Description: West End (County #1314) is a redevelopment district that was established on November 19, 2007 and is located within the Redevelopment Project No 1. Originally the district encompassed six (6) parcels of land and was established to facilitate the redevelopment of a site near I-394 and Highway 100 into approximately 1.5 million square feet of office, 350,000 square feet of retail, 124 hotel units and a 120-unit luxury apartment by Duke Realty. Subsequent to Duke Realty’s acquisition of the parcels, the property has been replatted into 9 parcels. The EDA executed a Development Agreement with Duke Realty Limited Partnership on December 17, 2007. The EDA provided Duke Realty a PAYGO note in a maximum principle of $21.1 million at 6.75% interest. Currently the retail, hotel and apartments have been constructed. Due to the current economic environment for office, it is not anticipated that construction will commence on the first of the three (3) office buildings until 2015, with the final building being completed in 2019. In addition to the PAYGO note, the City issued $5,490,000 in GO TIF bonds in 2008 to pay for various public improvements in the area, which have a priority claim on annual TIF revenue. Adopted………………..…… 11/19/2007 Requested Date…………..…. 06/30/2008 Certified Date………………07/09/2008 First Increment……..…….…… 07/2011 Anticipated Decertification....12/31/2031 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 88
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 88 Former and Current PID Numbers: Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 103.0550% Allowable Uses: MN Statute 469.176 subd. 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There is one GO Tax Increment Bond and one PAYGO Note for this district as follows: $5,490,000 GO Tax Increment Bonds, Series 2008B - $4,965,000 Senior TIF Bonds and $525,000 5% Admin Bonds. These bonds mature on February 1, 2024. $21,100,000 PAYGO Note (maximum amount) The City issued the 2008B TIF Bonds to pay for public improvements required for the West End development. Pursuant to the Development Agreement, the City could issue TIF Bonds that produced net proceeds (after deducting costs of issuance, discount and capitalized interest) in the Former PID # Former Use New PID #'sNew Use30-029-24-32-001830-029-24-21-0024 Future Office Bldgs - Land East of Utica30-029-24-32-0019Chilis30-029-24-32-0020Olive Garden30-029-24-32-0021Future Apartments30-029-24-32-0022Rainbow Grocery 30-029-24-33-0031Shops at West End30-029-24-33-0019NoneThis is now a portion of Utica Ave-No PID30-029-24-33-0002 Tennis Club 30-029-24-33-0031Shops at West End30-029-24-32-0025Existing Bank - Parking30-029-24-32-0026Existing Bank - Building30-029-24-32-0007 Chilis & Olive Garden30-029-24-32-0015 Existing Bank30-029-24-32-0011NovartisStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 89
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 89 amount of $4,500,000 (Senior TIF Bonds) and were required to have 120% debt service coverage. These Bonds have a first priority on the TIF and are paid from 95% of the increment generated by all property in the TIF District. If the increment generated is insufficient to make the Senior TIF Bond payments, then Duke Realty is required to make up this shortfall within 20 days of receipt of notice from the EDA (failure by the EDA to provide this notice does not relieve Duke Realty of its obligation to make the required payment). The City could also issue a bond of any size it determined that is secured in whole or in part by any portion of the 5% of Tax Increments that are withheld by the EDA as administration fee. These Bonds were issued as part of the 2008B TIF Bond issue and had a principle amount of $525,000. The PAYGO Note was issued on August 1, 2011. This note is paid at a 6.75% interest rate. The term of the TIF Note is unchanged and will be paid from August 1, 2011 to August 1, 2031, or a maximum term of twenty-one (21) years. Other Development Agreement Compliance: 1. LEED Certification. The core and shell of all office facilities are required to be LEED-certified (or at least meet current LEED requirements). 2. Outdoor Gathering Spaces. Duke Realty will provide outdoor gathering spaces and at least one 5,000-square foot indoor gathering space, that are privately owned by and available for public use (this includes public restrooms). The City and Duke Realty will enter into use agreements regarding these spaces to describe their respective responsibilities regarding procedures for notice and comment about activities, insurance and the like. 3. Neighborhood Police Station. Duke Realty will provide to City, without charge, approximately 250 square feet of finished space in Phase IIA for use as a neighborhood City police station. Upon completion, Duke Realty must operate and maintain the facility at their cost, including cleaning, heat and electricity. 4. Minimum Assessment Agreement. Duke Realty is required to execute a Minimum Assessment Agreement (MAA) for each phase. The Phase IIA MAA (retail portion) has been executed and states that the minimum market value shall be $70,216,260 on January 1, 2009 for payable 2010 and shall be in effect for the term of the obligation. 5. Lookback Provision. The EDA will perform a “lookback” calculation 60 days after the earliest of (i) the date a Phase or facility reaches 95% lease-up; (ii) the date of any Transfer in whole or in part of the subject Phase or facility; or (iii) three years after the date of issuance of the Certificate of Completion for the Phase or subject facility (September 30, 2012). The Redeveloper must submit evidence of its Yield on Total Project Costs, which is Net Operating Income in the year of the calculation divided by Total Project Costs to date. If that result is more than 15%, the EDA and Redeveloper share equally in the excess income. The EDA’s share is used to pay off outstanding PAYGO TIF Notes. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 90
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 90 Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The West End district met the requirement when the City approved the Development Agreement with Duke Realty Limited Partnership in December 2007. Four Year Rule: MN Statute 469.176 subd. 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four year rule limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The West End Redevelopment district fits this timeline and its four year rule is now July 9, 2014. Since redevelopment activities have been completed, the four year rule has been met. Five Year Rule: At least 75% of tax increment revenues generated within the district must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The West End Redevelopment district fits this timeline and its five year rule is now July 9, 2018. Geographic Enlargements: MN Statute 469.175 subd. 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after July 2013. Recommendations: 1. 5-Year Rule. Continue to review if there are any development opportunities to take advantage of the extended 5-year rule to 10-years, which is July 9, 2018. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 91
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 91 City of St. Louis ParkWest End TIF DistrictBasic AssumptionsOption B District:1314Inflation Rate0.00%Assumes Last Increment In2036 Legal MaximumBaseTotalTax Rate2031 Expected Term2010859,520 2,153,228 103.0550%Frozen rate 103.0550%2011859,520 2,007,820 121.8240%2012859,520 2,024,540 130.7480%2013859,520 2,074,375 133.1340%Cash Flow Projections0.00% 5.00%Fiscal Tax Fiscal Tax Other Invest Sr. TIF Admin TIF Admin. Other EndTIF Yr,MonthYearBaseTotalDisparitiesCapturedRateYearIncrementRevenueIncomeBndsBondsPaygoExpenseExpensesBalance0 8/1 2010 859,520 2,153,228 (400,563) 893,145 103.0550%0 2/1 20112010 - 1,321 201,469 22,594 10,671 18,954 (281,962) 0.5 8/1 2011 859,520 2,007,820 (407,705) 740,595 103.0550%1 2/1 20122011 760,473 4,080 201,469 22,594 11,317 19,087 228,125 1.5 8/1 2012 859,520 2,024,540 (407,719) 757,301 103.0550%2 2/1 20132012 777,616 6,262 501,513 22,594 406,058 5,918 19,086 56,834 2.5 8/1 2013 859,520 2,074,375 (411,062) 803,793 103.0550%3 2/1 20142013 828,349 501,438 22,594 236,303 18,824 106,025 3.5 8/1 2014 859,520 2,074,375 (411,062) 803,793 103.0550%4 2/1 20152014 828,349 500,631 37,331 233,791 4,086 158,534 4.5 8/1 2015 859,520 2,074,375 (411,062) 803,793 103.0550%5 2/1 20162015 828,349 499,081 41,719 235,516 (301) 210,868 5.5 8/1 2016 859,520 2,074,375 (411,062) 803,793 103.0550%6 2/1 20172016 828,349 496,750 45,900 233,454 (4,483) 267,596 6.5 8/1 2017 859,520 2,074,375 (411,062) 803,793 103.0550%7 2/1 20182017 828,349 498,081 54,731 232,854 (13,314) 323,593 7.5 8/1 2018 859,520 2,074,375 (411,062) 803,793 103.0550%8 2/1 20192018 828,349 498,381 58,231 232,854 (16,814) 379,289 8.5 8/1 2019 859,520 2,074,375 (411,062) 803,793 103.0550%9 2/1 20202019 828,349 498,081 61,531 233,454 (20,114) 434,686 9.5 8/1 2020 859,520 2,074,375 (411,062) 803,793 103.0550%10 2/1 20212020 828,349 496,169 69,394 231,679 (27,976) 493,770 10.5 8/1 2021 859,520 2,074,375 (411,062) 803,793 103.0550%11 2/1 20222021 828,349 497,494 71,806 235,804 (30,389) 547,404 11.5 8/1 2022 859,520 2,074,375 (411,062) 803,793 103.0550%12 2/1 20232022 828,349 493,031 78,881 235,604 (37,464) 605,700 12.5 8/1 2023 859,520 2,074,375 (411,062) 803,793 103.0550%13 2/1 20242023 828,349 492,781 80,619 231,304 (39,201) 668,547 13.5 8/1 2024 859,520 2,074,375 (411,062) 803,793 103.0550%14 2/1 20252024 828,349 496,216 86,966 369,367 (45,548) 589,895 14.5 8/1 2025 859,520 2,074,375 (411,062) 803,793 103.0550%15 2/1 20262025 828,349 - - 738,735 41,417 638,092 15.5 8/1 2026 859,520 2,074,375 (411,062) 803,793 103.0550%16 2/1 20272026 828,349 - - 738,735 41,417 686,288 16.5 8/1 2027 859,520 2,074,375 (411,062) 803,793 103.0550%17 2/1 20282027 828,349 - - 738,735 41,417 734,485 17.5 8/1 2028 859,520 2,074,375 (411,062) 803,793 103.0550%18 2/1 20292028 828,349 - - 738,735 41,417 782,681 18.5 8/1 2029 859,520 2,074,375 (411,062) 803,793 103.0550%19 2/1 20302029 828,349 - - 738,735 41,417 830,878 19.5 8/1 2030 859,520 2,074,375 (411,062) 803,793 103.0550%20 2/1 20312030 828,349 - - 738,735 41,417 879,074 20.5 8/1 2031 859,520 2,074,375 (411,062) 803,793 103.0550%21 2/1 20322031 828,349 - - 738,735 41,417 927,271 Total17,276,71754,692 7,015,736 777,485 8,519,184 194,093 5,387,641927,271Tax Capacity Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 92
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 92 Ellipse on Excelsior Description: Ellipse on Excelsior (County #1315) is a redevelopment district that was established on February 2, 2009 and is located within the Redevelopment Project No 1. Originally the district encompassed ten (10) parcels of land and was established to facilitate the purchase and redevelopment at the northwest corner of Excelsior Boulevard and France Avenue (former Al’s Liquors, Anderson Cleaner’s and motel sites). The first phase consists of the redevelopment of the Al’s Bar and Anderson Cleaner’s site into a five story mixed use building consisting of 133 market rate apartments and 16,383 square feet of retail. The EDA is required to issue the Developer two TIF notes totaling up to $1,430,000, at an interest rate of 6%, to reimburse them for qualified redevelopment costs. The City purchased the motel site in 2009 and demolished the building in 2010. On February 6, 2012, the City entered into a development agreement with Ellipse II, LLC. to construct the second phase of the development, which consists of 58 market rate rental units. On August 20, 2012, the EDA entered into an amended and restated purchase and redevelopment agreement to allocate a portion of the property from Phase I to Phase II. The project will be completed in early 2013. The EDA is required to issue the Developer a pay-as-you-go TIF note for $700,000, at an interest rate of 5.6%, to reimburse them for qualified redevelopment costs. Adopted……………..…..…. 02/02/2009 Requested Date…………….. 06/30/2009 Certified Date………..….…. 07/09/2009 First Increment………..…...……07/2011 Decertifies………………….. 12/31/2036 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 93
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 93 Former and Current PID Numbers: Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 107.8190% Allowable Uses: MN Statute 469.176 sub 4j specifies the activities on which tax increment from a redevelopment district may be spent. In general, tax increment must be spent on correcting those conditions which caused the area to be designated a redevelopment district. Allowable uses include property acquisition, demolition, rehabilitation, installation of public utilities, road, sidewalks, public parking facilities, and allowable administrative expenses. Obligations: There are three PAYGO Notes that were issued for this project as follows: $1,230,000 PAYGO Note A – Redevelopment Costs issued on February 23, 2011 $220,000 PAYGO Note B – Environmental Costs issued on February 23, 2011 $700,000 PAYGO Note – Redevelopment Costs (not yet issued) The first two (2) Notes carry a 6% interest rate and the third one will have a 5.6% interest rate. Each is paid from 95% of the available increment generated by the Ellipse on Excelsior Apartments (first 2 Notes) and Ellipse 2 (e2) on the second Note. The available increment is prorated semi-Former PIDFormer UseNew PIDNew Use06-028-24-41-0002Al's Liquor06-028-24-41-0069Al's Liquor06-028-24-41-0053 Excelsior Blvd LLC06-028-24-41-0052Al's Liquor06-028-24-41-0056Al's Liquor06-028-24-41-0057Al's Liquor06-028-24-41-0051Al's Liquor06-028-24-41-0050Al's Liquor06-028-24-41-0058Al's Liquor06-028-24-41-0003 Motel Same as Former E2 Apartments06-028-24-41-0072 Ellipse ApartmentsStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 94
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 94 annually between the first two Notes with 86% being paid to the A Note and 14% being paid to the B Note. It is anticipated that the Notes will be repaid in 13 years or by February 1, 2024. Other Development Agreement Compliance: 2. Look Back – Ellipse I. Within 60 days after the earliest of (i) stabilization (93% of the rental units are leased); (2) sale of property or; (3) three years after the issuance of the CO, the developer will provide the City the financial data to calculate the actual rate of return to the developer. If, based on such review, the actual profit for the developer exceeds a 20% internal rate of return, then 50% of the excess percentage of the profit will be applied as prepayment of the outstanding principal amount of the TIF Note. The development reached its occupancy threshold in mid-2011 and the look back was completed. The developer ‘s expected internal rate of return was below the 20% threshold so there was no excess profit to prepay the TIF note. 3. Look Back – Ellipse II. Within 60 days after the earliest of (i) stabilization (93% of the rental units are leased); (2) sale of property or; (3) three years after the issuance of the CO, the developer will provide the City the financial data to calculate the actual rate of return to the developer. If, based on such review, the actual profit for the developer exceeds a 18% internal rate of return, then 50% of the excess percentage of the profit will be applied as prepayment of the outstanding principal amount of the TIF Note. 4. Special Service District – Both Properties. Upon written request by the City, they will submit required petition to renew any levy of special service charges for the District. 5. Minimum Assessment Agreement – Both Properties. For Phase I, the minimum market value as of January 2, 2011 shall be $8,819,000 and the minimum market value as of January 2, 2012 shall be $17,637,450. The Assessment Agreement shall be in place until the TIF Note is paid in full or the TIF District terminates, whichever is sooner. For Phase II, the minimum market value as of January 2, 2014 shall be $6,380,000. The Assessment Agreement shall be in place until the TIF Note is paid in full or the TIF District terminates, whichever is sooner. Three Year Rule: The three year rule states that, within three years from certification date, bonds much be issued, the authority has acquired land or has caused public improvements to be constructed in the district. The Ellipse on Excelsior’s Three Year deadline was July 2012. Since redevelopment is finished, the three year deadline was met. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. The State Legislature amended the four year rule Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 95
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 95 limit to increase it to six years for districts certified after January 1, 2005 and before April 20, 2009. The Ellipse on Excelsior district does not fit this timeline and its four year rule is July 2013. Since redevelopment has been completed on the former Al’s Bar and Anderson Drycleaner site (construction of the Ellipse Apartments) and the City has purchased and demolished the motel on the other site, the four year rule has been met. Five Year Rule: At least 75% of tax increment revenues generated within the district must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Ellipse on Excelsior district does not fit this timeline and its five year rule is July 2014. Since the EDA has entered into contracts and obligated TIF dollars, the Five-Year rule has been satisfied. Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after July 2014. Recommendations: None at this time. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 96
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 96 City of St. Louis ParkEllipse on Excelsior TIF DistrictBasic AssumptionsOption B District: 1315Inflation Rate 0.00%Assumes Last Increment In 2036 Legal MaximumBaseTotalTax RateFrozen rate107.8190%201063,453 63,453 107.8190% First receipt requested 2011201134,823 44,666 121.8240%201224,527 225,430 130.7480%201324,527 244,480 133.1340%Cash Flow Projections0.00%5.00%Fiscal NewTax Fiscal Tax Other InvestAdmin. OtherEndTIF Yr,MonthYearBaseTotalDisparitiesDevelopmentCapturedRateYearIncrementRevenueIncomePaygo APaygo BPaygo CExpenseExpensesBalance0 2/1 201120103,274 (3,274) 0.5 8/1 2011 34,823 44,666 9,843 107.8190%1 2/1 20122011 10,574 10 5,076 2,234 1.5 8/1 2012 24,527 225,430 (15,374) 185,529 107.8190%2 2/1 20132012 199,315 89 90,059 14,661 - 4,295 176,599 (83,975) 2.5 8/1 2013 24,527 244,480 (18,688) 201,265 107.8190%3 2/1 20142013 217,002 162,840 26,509 10,850 (67,173) 3.5 8/1 2014 24,527 244,480 (18,688) 201,265 107.8190%4 2/1 20152014 217,002 162,840 26,509 10,850 (50,370) 4.5 8/1 2015 24,527 244,480 (18,688) 69,623 270,888 107.8190%5 2/1 20162015 292,069 162,840 26,509 32,064 14,603 5,682 5.5 8/1 2016 24,527 244,480 (18,688) 69,623 270,888 107.8190%6 2/1 20172016 292,069 162,840 26,509 64,129 14,603 29,669 6.5 8/1 2017 24,527 244,480 (18,688) 69,623 270,888 107.8190%7 2/1 20182017 292,069 162,840 26,509 64,129 14,603 53,657 7.5 8/1 2018 24,527 244,480 (18,688) 69,623 270,888 107.8190%8 2/120192018 292,069 162,840 26,509 64,129 14,603 77,645 8.5 8/1 2019 24,527 244,480 (18,688) 69,623 270,888 107.8190%9 2/1 20202019 292,069 162,840 26,509 64,129 14,603 101,632 9.5 8/1 2020 24,527 244,480 (18,688) 69,623 270,888 107.8190%10 2/1 20212020 292,069 162,840 26,509 64,129 14,603 125,620 10.5 8/1 2021 24,527 244,480 (18,688) 69,623 270,888 107.8190%11 2/1 20222021 292,069 162,840 26,509 64,129 14,603 149,607 11.5 8/1 2022 24,527 244,480 (18,688) 69,623 270,888 107.8190%12 2/1 20232022 292,069 162,840 26,509 64,129 14,603 173,595 12.5 8/1 2023 24,527 244,480 (18,688) 69,623 270,888 107.8190%13 2/1 20242023 292,069 15,646 26,509 64,129 14,603 344,776 13.5 8/1 2024 24,527 244,480 (18,688) 69,623 270,888 107.8190%14 2/1 20252024 292,069 - 16,773 64,129 14,603 541,339 14.5 8/1 2025 24,527 244,480 (18,688) 69,623 270,888 107.8190%15 2/1 20262025 292,069 - - 64,129 14,603 754,676 15.5 8/1 2026 24,527 244,480 (18,688) 69,623 270,888 107.8190%16 2/1 20272026 292,069 - 64,129 14,603 968,012 16.5 8/1 2027 24,527 244,480 (18,688) 69,623 270,888 107.8190%17 2/1 20282027 292,069 - 64,129 14,603 1,181,349 17.5 8/1 2028 24,527 244,480 (18,688) 69,623 270,888 107.8190%18 2/1 20292028 292,069 - 64,129 14,603 1,394,685 18.5 8/1 2029 24,527 244,480 (18,688) 69,623 270,888 107.8190%19 2/1 20302029 292,069 - 64,129 14,603 1,608,022 19.5 8/1 2030 24,527 244,480 (18,688) 69,623 270,888 107.8190%20 2/1 20312030 292,069 - 64,129 14,603 1,821,359 20.5 8/1 2031 24,527 244,480 (18,688) 69,623 270,888 107.8190%21 2/1 20322031 292,069 64,129 14,603 2,034,695 21.5 8/1 2032 24,527 244,480 (18,688) 69,623 270,888 107.8190%22 2/1 20332032 292,069 64,129 14,603 2,248,032 22.5 8/1 2033 24,527 244,480 (18,688) 69,623 270,888 107.8190%23 2/1 20342033 292,069 14,603 2,525,497 23.5 8/1 2034 24,527 244,480 (18,688) 69,623 270,888 107.8190%24 2/1 20352034 292,069 14,603 2,802,962 24.5 8/1 2035 24,527 244,480 (18,688) 69,623 270,888 107.8190%25 2/1 20362035 292,069 14,603 3,080,428 25.5 8/1 2036 24,527 244,480 (18,688) 69,623 270,888 107.8190%26 2/1 20372036 292,069 14,603 3,357,893 Total7,069,40699 1,734,108 323,032 1,122,253 355,621 176,599 3,357,893Tax CapacityDebt Service Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 97
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 97 Maximum amount 1,230,000$ Interest Rate6.00%Note Issue Date 8/1/2011Final Payment 8/1/2030Total Tax Tax Increment Tax Increment Accrued CumulativeAccruedIncrement Available at For Note PrincipleInterestTax IncrementAccrued Interest InterestAvailable 95.00% 86.00% PaidPaidPaidNot Paid BalanceYear1,230,000.00$ 8/1/2011- 5,287.20 5,022.84 4,319.64 4,319.64 4,319.64 1,225,680.36$ -$ -$ 12/1/201237,587.53 5,287.20 5,022.84 4,319.64 - 8,639.28 1,225,680.36$ 33,267.89$ 33,267.89$ 1.58/1/201237,178.97 99,657.40 94,674.53 81,420.10 10,973.24 33,267.89 90,059.38 1,214,707.12$ -$ -$ 22/1/201337,251.02 99,657.40 94,674.53 81,420.10 44,169.08 - 171,479.48 1,170,538.04$ -$ -$ 2.58/1/201335,311.23 99,657.40 94,674.53 81,420.10 46,108.87 - 252,899.57 1,124,429.18$ -$ -$ 32/1/201434,482.49 99,657.40 94,674.53 81,420.10 46,937.60 - 334,319.67 1,077,491.58$ -$ -$ 3.58/1/201432,504.33 99,657.40 94,674.53 81,420.10 48,915.77 - 415,739.77 1,028,575.81$ -$ -$ 42/1/201531,542.99 99,657.40 94,674.53 81,420.10 49,877.11 - 497,159.86 978,698.70$ -$ -$ 4.58/1/201529,524.08 99,657.40 94,674.53 81,420.10 51,896.02 - 578,579.96 926,802.68$ -$ -$ 52/1/201628,421.95 99,657.40 94,674.53 81,420.10 52,998.15 - 660,000.06 873,804.54$ -$ -$ 5.58/1/201626,505.40 99,657.40 94,674.53 81,420.10 54,914.69 - 741,420.15 818,889.84$ -$ -$ 62/1/201725,112.62 99,657.40 94,674.53 81,420.10 56,307.47 - 822,840.25 762,582.37$ -$ -$ 6.58/1/201723,004.57 99,657.40 94,674.53 81,420.10 58,415.53 - 904,260.35 704,166.84$ -$ -$ 72/1/201821,594.45 99,657.40 94,674.53 81,420.10 59,825.65 - 985,680.44 644,341.19$ -$ -$ 7.58/1/201819,437.63 99,657.40 94,674.53 81,420.10 61,982.47 - 1,067,100.54 582,358.72$ -$ -$ 82/1/201917,859.00 99,657.40 94,674.53 81,420.10 63,561.10 - 1,148,520.64 518,797.63$ -$ -$ 8.58/1/201915,650.40 99,657.40 94,674.53 81,420.10 65,769.70 - 1,229,940.73 453,027.93$ -$ -$ 92/1/202013,892.86 99,657.40 94,674.53 81,420.10 67,527.24 - 1,311,360.83 385,500.69$ -$ -$ 9.58/1/202011,693.52 99,657.40 94,674.53 81,420.10 69,726.58 - 1,392,780.93 315,774.11$ -$ -$ 102/1/20219,683.74 99,657.40 94,674.53 81,420.10 71,736.36 - 1,474,201.02 244,037.75$ -$ -$ 10.58/1/20217,361.81 99,657.40 94,674.53 81,420.10 74,058.29 - 1,555,621.12 169,979.46$ -$ -$ 112/1/20225,212.70 99,657.40 94,674.53 81,420.10 76,207.39 - 1,637,041.22 93,772.07$ -$ -$ 11.58/1/20222,828.79 99,657.40 94,674.53 81,420.10 78,591.31 - 1,718,461.31 15,180.76$ -$ -$ 122/1/2023465.54 99,657.40 94,674.53 81,420.10 15,180.76 - 1,799,881.41 0.00$ -$ -$ 12.5TOTAL504,107.62 1,230,000.00 Note ANote BalanceDate Interest DueCity of St. Louis ParkEconomic Development AuthorityEllipse on Excelsior - County TIF District 1315 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 98
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 98 Maximum amount 220,000$ Interest Rate 6.00%Note Issue Date 8/1/2011Final Payment 8/1/2030Total Tax Tax Increment Tax Increment Accrued CumulativeAccruedIncrement Available at For Note PrincipleInterestTax IncrementAccrued Interest InterestAvailable 95.00% 14.00% PaidPaidPaidNot Paid BalanceYear220,000.00$ 8/1/2011 - 5,287.20 5,022.84 703.20 703.20 703.20 219,296.80$ -$ -$ 12/1/20126,725.10 5,287.20 5,022.84 703.20 - 1,406.40 219,296.80$ 6,021.90$ 6,021.90$ 1.58/1/20126,652.00 99,657.40 94,674.53 13,254.43 580.53 6,021.90 14,660.83 218,716.28$ -$ -$ 22/1/20136,707.30 99,657.40 94,674.53 13,254.43 6,547.14 - 27,915.26 212,169.14$ -$ -$ 2.58/1/20136,400.44 99,657.40 94,674.53 13,254.43 6,854.00 - 41,169.70 205,315.14$ -$ -$ 32/1/20146,296.33 99,657.40 94,674.53 13,254.43 6,958.10 - 54,424.13 198,357.04$ -$ -$ 3.58/1/20145,983.77 99,657.40 94,674.53 13,254.43 7,270.66 - 67,678.57 191,086.37$ -$ -$ 42/1/20155,859.98 99,657.40 94,674.53 13,254.43 7,394.45 - 80,933.00 183,691.92$ -$ -$ 4.58/1/20155,541.37 99,657.40 94,674.53 13,254.43 7,713.06 - 94,187.44 175,978.86$ -$ -$ 52/1/20165,396.69 99,657.40 94,674.53 13,254.43 7,857.75 - 107,441.87 168,121.11$ -$ -$ 5.58/1/20165,099.67 99,657.40 94,674.53 13,254.43 8,154.76 - 120,696.30 159,966.35$ -$ -$ 62/1/20174,905.63 99,657.40 94,674.53 13,254.43 8,348.80 - 133,950.74 151,617.55$ -$ -$ 6.58/1/20174,573.80 99,657.40 94,674.53 13,254.43 8,680.64 - 147,205.17 142,936.91$ -$ -$ 72/1/20184,383.40 99,657.40 94,674.53 13,254.43 8,871.04 - 160,459.61 134,065.88$ -$ -$ 7.58/1/20184,044.32 99,657.40 94,674.53 13,254.43 9,210.11 - 173,714.04 124,855.76$ -$ -$ 82/1/20193,828.91 99,657.40 94,674.53 13,254.43 9,425.52 - 186,968.48 115,430.24$ -$ -$ 8.58/1/20193,482.15 99,657.40 94,674.53 13,254.43 9,772.29 - 200,222.91 105,657.95$ -$ -$ 92/1/20203,240.18 99,657.40 94,674.53 13,254.43 10,014.26 - 213,477.34 95,643.69$ -$ -$ 9.58/1/20202,901.19 99,657.40 94,674.53 13,254.43 10,353.24 - 226,731.78 85,290.45$ -$ -$ 102/1/20212,615.57 99,657.40 94,674.53 13,254.43 10,638.86 - 239,986.21 74,651.59$ -$ -$ 10.58/1/20212,251.99 99,657.40 94,674.53 13,254.43 11,002.44 - 253,240.65 63,649.15$ -$ -$ 112/1/20221,951.91 99,657.40 94,674.53 13,254.43 11,302.53 - 266,495.08 52,346.62$ -$ -$ 11.58/1/20221,579.12 99,657.40 94,674.53 13,254.43 11,675.31 - 279,749.52 40,671.31$ -$ -$ 122/1/20231,247.25 99,657.40 94,674.53 13,254.43 12,007.18 - 293,003.95 28,664.13$ -$ -$ 12.58/1/2023864.70 99,657.40 94,674.53 13,254.43 12,389.73 - 306,258.38 16,274.39$ -$ -$ 132/1/2024499.08 99,657.40 94,674.53 13,254.43 16,274.39 - 319,512.82 0.00$ -$ -$ 13.5TOTAL 103,031.86 220,000.00 Note BDate Interest DueNote BalanceCity of St. Louis ParkEconomic Development AuthorityEllipse on Excelsior - County TIF District 1315 Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 99
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 99 Maximum amount 700,000$ Interest Rate5.60%Note Issue Date 8/1/2013Final Payment 8/1/2030Total Tax Tax Increment Tax Increment Accrued CumulativeAccruedIncrement Available at For Note PrincipleInterestTax IncrementAccrued Interest InterestAvailable 95.00% 95.00% PaidPaidPaidNot Paid BalanceYear700,000.00$ 8/1/2013- - - - - - 700,000.00$ -$ -$ 12/1/201420,035.56 - - - - - 720,035.56$ 20,035.56$ 20,035.56$ 1.58/1/201420,273.00 - - - - - - 740,308.56$ 20,273.00$ 40,308.56$ 22/1/201521,189.28 - - - - - - 761,497.83$ 21,189.28$ 61,497.83$ 2.58/1/201521,440.39 35,528.38 33,751.96 32,064.36 10,623.97 - 32,064.36 750,873.87$ (12,311.56)$ 49,186.27$ 32/1/201621,491.68 35,528.38 33,751.96 32,064.36 10,572.68 - 64,128.72 740,301.19$ (12,260.28)$ 36,925.99$ 3.58/1/201620,958.75 35,528.38 33,751.96 32,064.36 11,105.61 - 96,193.08 729,195.58$ (12,793.21)$ 24,132.78$ 42/1/201720,871.20 35,528.38 33,751.96 32,064.36 11,193.16 - 128,257.44 718,002.41$ (12,880.76)$ 11,252.02$ 4.58/1/201720,215.76 35,528.38 33,751.96 32,064.36 11,848.60 - 160,321.80 706,153.81$ -$ 11,252.02$ 52/1/201820,211.69 35,528.38 33,751.96 32,064.36 11,852.67 - 192,386.16 694,301.14$ -$ 11,252.02$ 5.58/1/201819,548.43 35,528.38 33,751.96 32,064.36 12,515.93 - 224,450.52 681,785.22$ -$ 11,252.02$ 62/1/201919,514.21 35,528.38 33,751.96 32,064.36 12,550.15 - 256,514.88 669,235.07$ -$ 11,252.02$ 6.58/1/201918,842.69 35,528.38 33,751.96 32,064.36 13,221.67 - 288,579.24 656,013.39$ -$ 11,252.02$ 72/1/202018,776.56 35,528.38 33,751.96 32,064.36 13,287.80 - 320,643.60 642,725.59$ -$ 11,252.02$ 7.58/1/202018,196.28 35,528.38 33,751.96 32,064.36 13,868.08 - 352,707.96 628,857.51$ -$ 11,252.02$ 82/1/202117,999.30 35,528.38 33,751.96 32,064.36 14,065.06 - 384,772.32 614,792.45$ -$ 11,252.02$ 8.58/1/202117,309.82 35,528.38 33,751.96 32,064.36 14,754.54 - 416,836.68 600,037.91$ -$ 11,252.02$ 92/1/202217,174.42 35,528.38 33,751.96 32,064.36 14,889.94 - 448,901.04 585,147.97$ -$ 11,252.02$ 9.58/1/202216,475.17 35,528.38 33,751.96 32,064.36 15,589.19 - 480,965.39 569,558.78$ -$ 11,252.02$ 102/1/202316,302.04 35,528.38 33,751.96 32,064.36 15,762.32 - 513,029.75 553,796.46$ -$ 11,252.02$ 10.58/1/202315,592.45 35,528.38 33,751.96 32,064.36 16,471.91 - 545,094.11 537,324.54$ -$ 11,252.02$ 112/1/202415,379.42 35,528.38 33,751.96 32,064.36 16,684.94 - 577,158.47 520,639.61$ -$ 11,252.02$ 11.58/1/202414,739.89 35,528.38 33,751.96 32,064.36 17,324.47 - 609,222.83 503,315.13$ -$ 11,252.02$ 122/1/202514,406.00 35,528.38 33,751.96 32,064.36 15,180.76 - 641,287.19 488,134.37$ -$ 11,252.02$ 12.58/1/202513,743.69 35,528.38 33,751.96 32,064.36 18,320.67 - 673,351.55 469,813.71$ -$ 11,252.02$ 132/1/202613,447.11 35,528.38 33,751.96 32,064.36 18,617.25 - 705,415.91 451,196.46$ -$ 11,252.02$ 13.58/2/202612,773.87 35,528.38 33,751.96 32,064.36 19,290.49 - 737,480.27 431,905.97$ -$ 11,252.02$ 142/2/202712,362.11 35,528.38 33,751.96 32,064.36 19,702.25 - 769,544.63 412,203.72$ -$ 11,252.02$ 14.58/2/202711,605.82 35,528.38 33,751.96 32,064.36 20,458.53 - 801,608.99 391,745.19$ -$ 11,252.02$ 152/2/202811,212.62 35,528.38 33,751.96 32,064.36 20,851.74 - 833,673.35 370,893.44$ -$ 11,252.02$ 15.58/1/202810,442.71 35,528.38 33,751.96 32,064.36 21,621.65 - 865,737.71 349,271.80$ -$ 11,252.02$ 162/1/20299,996.93 35,528.38 33,751.96 32,064.36 22,067.42 - 897,802.07 327,204.37$ -$ 11,252.02$ 16.58/1/20299,212.62 35,528.38 33,751.96 32,064.36 22,851.74 - 929,866.43 304,352.63$ -$ 11,252.02$ 172/1/20308,711.25 35,528.38 33,751.96 32,064.36 23,353.11 - 961,930.79 280,999.52$ -$ 11,252.02$ 17.58/2/20307,955.41 35,528.38 33,751.96 32,064.36 24,108.95 - 993,995.15 256,890.57$ -$ 11,252.02$ 182/2/20317,352.78 35,528.38 33,751.96 32,064.36 24,711.58 - 1,026,059.51 232,178.99$ -$ 11,252.02$ 18.58/2/20316,537.13 35,528.38 33,751.96 32,064.36 25,527.23 - 1,058,123.87 206,651.76$ -$ 11,252.02$ 192/2/20325,914.83 35,528.38 33,751.96 32,064.36 26,149.53 - 1,090,188.23 180,502.23$ -$ 11,252.02$ 19.58/1/20325,082.14 35,528.38 33,751.96 32,064.36 26,982.22 - 1,122,252.59 153,520.01$ -$ 11,252.02$ 20TOTAL426,943.96 273,363.46 NoteNote BalanceDate Interest DueCity of St. Louis ParkEconomic Development AuthorityEllipse II - County TIF District 1315Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 100
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 100 Hardcoat Description: Hardcoat (County #1316) is an economic development district that was established on December 20, 2010 and is located within the Redevelopment Project No 1. Originally the district encompassed two (2) parcels of land and was established to facilitate the redevelopment of the former Flame Metals building. The City provided them a $500,000 grant through the CAP program. Hardcoat renovated the building and site, and relocated its operations there. The existing industrial building is approximately 33,600 square feet and was constructed in 1963. Both the interior and exterior had numerous building code deficiencies. Following Flame Metals’ departure in 2009, the building’s interior has been emptied, thoroughly cleaned, repainted, and many (but not all) code deficiencies have been addressed. Nearly all the building’s operating systems have been removed. The project included a complete renovation of both the interior and exterior of the building as well as the addition of approximately 1,500 square feet of office/conference space on the north side of the building. Renovations included a new roof, new exterior facelift, new windows and dock doors, new offices and interior spaces, new electrical and plumbing systems, new energy efficient HVAC equipment, new parking lot and landscaping, rain gardens and site amenities, as well as the construction of a 1,500 SF addition for office/conference space. Hardcoat will initially occupy approximately 25,000 square feet of the building. The balance will be leased to a complementary business and provide Hardcoat with future expansion capacity. Adopted……………..….… 12/20/2010 Requested Date………..….. 04/20/2011 Certified Date……………... 04/27/2011 First Increment……………………TBD Decertifies………………...............TBD Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 101
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 101 Former and Current PID Numbers: Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 121.8240% Obligations: $500,000 Interfund loan payable from the Hardcoat TIF district adopted on EDA Res10-24 on January 26, 2011. This Loan carries a 4% interest rate and is paid from 100% of the available increment generated by Hardcoat. The loan was structured so that $420,000 was related to construction costs and the remaining $80,000 was related to administrative costs. It is anticipated that this loan will not be repaid in full. Other Development Agreement Compliance: 1. Minimum Assessment Agreement. The minimum market value as of January 2, 2013 shall be $2,400,000. The Assessment Agreement shall be in place until the Interfund Loan is paid in full or the TIF District terminates, whichever is sooner. Four Year Rule: MN Statute 469.176 sub 6 requires that, within four years from certification date, certain activities must have taken place on each parcel with the TIF district. Required activities include demolition, rehabilitation, renovation and site improvements. Five Year Rule: At least 80% of tax increment revenues generated within the district must be used to pay for qualified costs within the district. The State Legislature amended the five year rule limit to increase it to ten years for Redevelopment or Renewal and Renovation districts certified after June 30, 2003 and before April 20, 2009. The Hardcoat District does not fit this timeline and its five year rule is 2016. Former PIDFormer UseNew PIDNew Use20-117-21-21-0093 Flame Metals Same as Original17-117-21-34-0027 Flame Metals Same as OriginalHardcoatStudy Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 102
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 102 Geographic Enlargements: MN Statute 469.175 sub 4 (f) places limits on the length of time a TIF district may add parcels. No parcels may be added five years after the certification date. The district may not be enlarged after 2016. Recommendations: None at this time. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 103
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 103 Oakhill II Description: Oakhill II (County #1317) is an economic development district that was established on January 17, 2012 and is located within the Redevelopment Project No 1. The district encompassed one (1) parcel of land and was established to facilitate the construction of a 21,400 square foot office facility under MN Statute 469.176 Subd 4c (d), the “Jobs Bill”. Adopted……………..….… 01/17/2012 Requested Date………..….. 06/28/2012 Certified Date……………... 07/27/2012 First Increment……………………TBD Decertifies……………..….. 12/31/2023 Current PID Numbers: 17-117-21-42-0072 Fiscal Disparities Election: The City elected to calculate fiscal disparities from inside (B election) the district. Frozen Tax Rate: 130.7480% Obligations: None Other Development Agreement Compliance: Recommendations: Review to see if district should be decertified since construction did not commence as required by JOBS bill extension (isn’t eligible as a “normal” economic development district). Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 104
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 104 City Map of the TIF Districts Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 105
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 105 Definitions Administrative expenses. “Administrative expenses" means all expenditures of an authority other than: amounts paid for the purchase of land; amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; relocation benefits paid to or services provided for persons residing or businesses located in the project; amounts used to pay principal or interest on, "administrative expenses" includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Authority. "Authority" means a rural development financing authority created pursuant to sections 469.142 to 469.151; a housing and redevelopment authority created pursuant to sections 469.001 to 469.047; a port authority created pursuant to sections 469.048 to 469.068; an economic development authority created pursuant to sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; a municipality that is administering a development district created pursuant to sections 469.124 to 469.134 or any special law; a municipality that undertakes a project pursuant to sections 469.152 to 469.165, except a town located outside the metropolitan area or with a population of 5,000 persons or less; or a municipality that exercises the powers of a port authority pursuant to any general or special law. Bonds. Bonds or other obligations include: refunding bonds, notes, interim certificates, debentures; and interfund loans or advances. Captured net tax capacity. "Captured net tax capacity" means the amount by which the current net tax capacity of a tax increment financing district or an extended subdistrict exceeds the original net tax capacity. Compact development district. "Compact development district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that blighting conditions exist and that when the redevelopment is complete, the total square footage of buildings will be three times greater. Economic development district. "Economic development district" means a type of tax increment financing district which consists of any project, or portions of a project, which the authority finds to be in the public interest because it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or it will result in increased employment in the state; or it will result in preservation and enhancement of the tax base of the state. Five Year Rule. Within five years from certification, certain financing activities must take place in the district in order to retain the ability to collect increment from the district as a whole. These financing activities include issuing bonds, paying revenues to a third party for site improvements and binding contracts have been entered into. For certain districts, no additional obligations may be entered into after the five years have elapsed. Four Year Rule. Within four years from certification, certain improvements must be made to each parcel or to a street adjacent to the parcel in order for the Authority to retain the ability to capture increment from that parcel. If no activities take place, the parcel is ‘knocked down’ from the district and no Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 106
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 106 increment is collected on that parcel. If those activities subsequently take place, the authority must notify the county in order to collect future increment from the parcel. Activities include: demolition, rehabilitation, renovation, site preparation and improvement of a street adjacent to a parcel. Qualified street improvements are limited to construction or opening of a new street, relocation of a street, and substantial reconstruction or rebuilding of an existing street. Governing body. "Governing body" means the elected council or board of a municipality. Housing district. "Housing district" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income. Increment Revenue. "Tax increment revenues" include: taxes paid by the captured net tax capacity, proceeds from the sale or lease of property that was purchased with tax increments, principal and interest received on loans or other advances made by the authority with tax Municipality. "Municipality" means the city, however organized, in which the district is located. Original net tax capacity. "original net tax capacity" means the tax capacity of all taxable real property within a tax increment financing district as certified by the commissioner of revenue for the previous assessment year. Project. "Project" means a project as described in section 469.142; an industrial redevelopment district as described in section 469.058, subdivision 1; an economic development district as described in section 469.101, subdivision 1; a project as defined in section 469.002, subdivision 12; a development district as defined in section 469.125, subdivision 9, or any special law; or a project as defined in section 469.153, subdivision 2, paragraph (a), (b), or (c). Tax increment financing district. "Tax increment financing district" or "district" means a contiguous or noncontiguous geographic area within a project delineated in the tax increment financing plan, for the purpose of financing redevelopment, housing or economic development in municipalities through the use of tax increment generated from the captured net tax capacity in the tax increment financing district. Parcel. "Parcel" means a tract or plat of land established prior to the certification of the district as a single unit for purposes of assessment. Project Area “Project Area” means a defined geographic area in which tax increment districts may be established. The project area may be larger than or equal to the size of the district. A Project Area Plan is adopted that outlines the conditions in the district and the statutory authority under which development or redevelopment will take place. Redevelopment district. "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more blighting conditions exist, reasonably distributed throughout the district. Parcels in a Redevelopment District must be analyzed to determine if they qualify under the law to be included in the District. Blighting factors include structurally substandard buildings, parcels that are vacant, unused, underused or inappropriately used. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 107
Management Review & Analysis - Tax Increment Financing Districts May 2013 St Louis Park, Minnesota Page 107 Renewal and renovation district. "Renewal and renovation district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more blighting conditions exist, similar to a Redevelopment District. The qualification rules are less stringent than a Redevelopment District. Soils condition district. "Soils condition district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that hazardous substances, pollution or contaminants exist that require removal. Tax increment financing plan. A Tax Increment Financing Plan is a document that is adopted by resolution by the Authority which outlines certain statutory requirements. These include a statement of objectives of the project, a list of development activities that the plan proposes, identification of parcels to be included in the district, a budget of revenues and project costs, and district duration. Study Session Meeting of May 13, 2013 (Item No. 5) Title: Annual TIF Management ReportPage 108
TIF Status Report
City of St. Louis Park
Stacie Kvilvang – Ehlers
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 109
Overview
•Number of TIF Districts
•Tax Capacity Captured by TIF
•Increase in Tax Base
•Existing Obligations
•Recommendations
•Future Actions
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 110
Number of TIF Districts
•14 TIF Districts
8 Redevelopment (26 years)
•Victoria Ponds, Zarthan, Mill City, Park Commons, Wolfe Lake, Highway 7
Business Center, West End, Ellipse on Excelsior
2 Housing (26 years)
•Park Center, Aquila Commons
1 Soils (20 years)
•Edgewood
1 Renewal and Renovation (16 years)
•Elmwood
1 Economic Development (9 years)
•Hardcoat
1 Hazardous Substance Subdistrict (term varies)
•Highway 7 Business Center
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 111
Tax Capacity Captured by TIF
Note: 2014 decrease is due to HSTI and Victoria
Ponds TIF districts decertifying
Year Captured TIF as % of
Tax Base
2005 9.1%
2006 9.1%
2007 10.0%
2008 11.2%
2009 11.9%
2010 8.8%
2011 9.7%
2012 8.6%
2013 9.0%
2014 7.1%
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 112
Tax Capacity Captured by TIF
•Victoria Ponds District will decertify at the end of this year
Approximately 330,000 of tax capacity will no longer be captured
for TIF for 2014
•Approximately .05% of total tax capacity of City
•Excelsior Boulevard HSTI District will decertify at the end
of this year
Approximately 950,000 of tax capacity will no longer be captured
for TIF for 2014
•Approximately 1.5% of total tax capacity of City
•In 2014, approximately 1,280,000 of tax capacity will no longer be
captured for TIF
•Approximately 2.0% of total tax capacity of City
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 113
Tax Capacity Captured by TIF
Comparable Cities Final Pay 2013 City
2013 Est Captured TIF as a % of Tax Base City Tax Rate Bond Rating
Minnetonka 2.0%37.213%Aaa
Brooklyn Park 3.2%62.741%AA+
Edina 3.9%27.216%Aaa/AAA
Minneapolis 6.6%72.717%Aaa/AAA
St. Louis Park 9.0%48.228%AAA
Bloomington 7.5%47.207%Aaa/AAA
Golden Valley 9.1%58.204%Aaa
Richfield 10.2%65.667%Aa2
Hopkins 9.3%63.819%AA
New Brighton 14.9%44.663%AA
Final Pay 2013
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 114
Increase in Tax Base
•Based upon pay 2013 values
•Only partial values for West End (partial apartments and no office)
•Only partial value for Ellipse (no value attributable to Ellipse 2)
•Hardcoat has Minimum Assessment amount for pay 2014 of $2,400,000
District County District Number Original Market
Value
Pay 2013 Market
Value
Percent Increase in
Value
Victoria Ponds 1303 $500,000 $32,635,788 6527.16%
Park Center 1304 $493,000 $7,553,000 1532.05%
Zarthan 1305 and 1306 $4,053,600 $30,299,474 747.47%
Mill City 1307 $708,700 $20,000,000 2822.07%
Park Commons 1308 $6,688,000 $131,333,714 1963.72%
Edgewood 1309 $1,000,000 $3,795,000 379.50%
Wolfe Lake 1310 $1,717,300 $9,500,000 553.19%
Aquila 1311 $1,900,000 $15,683,325 825.44%
Elmwood 1312 $10,864,500 $84,189,437 774.90%
Highway 7 Business Center 1313 $2,772,700 $9,208,800 332.12%
West End (partial completion)1314 $43,051,000 $104,087,000 241.78%
Ellipse (partial completion)1315 $1,931,800 $17,954,000 929.39%
Hardcoat (MAA for Pay 2013)1316 $1,184,700 $980,000 -17.28%
TOTAL N/A $75,680,600 $467,219,538 617.36%
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 115
Existing Obligations
District Note Outstanding After
2/1/2013
Note A 1,516,701$
Note B 260,006$
Note C 75,318$
Note D 24,060$
Aquila Commons Stonebridge 689,634$
Edgewood Edgewood 312,491$
Wolfe Lake Beltline 630,032$
Excelsior & Grand 4,851,244$
Phase NE 4,739,870$
Phase E 3,684,189$
Phase NW 4,721,811$
Victoria Ponds SVK 68,070$
Mill City SLP Apts 5,753,532$
CSM Note 1 1,572,001$
CSM Note 2 2,092,464$
CSM Note 3 1,197,618$
West End Duke 20,909,528$
Bader Note A 1,170,538$
Bader Note B 212,169$
Ellipse II LLC 700,000$
TOTAL 55,181,276$
Pay As You Go Obligations
Hwy 7 Corporate Center
Park Commons
Zarthan
Ellipse on Excelsior
Issue Amount Paying District Term
2008B GO Tax Increment Bonds 4,870,000$ West End 2/1/2024
2004A Tax Increment Refunding Bonds 1,415,000$ Trunk Hwy 7 2/1/2018
2010A Tax Increment Revenue Bonds - Hoigaards 2,925,000$ Elmwood 2/1/2023
2010B Tax Increment Revenue Bonds - Hoigaards 771,834$ Elmwood 2/1/2023
TOTAL 9,981,834$ N/A N/A
Bonds as of 2/1/2013
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 116
Recommendations
1.Use of Districts With On-Going Cash Balances. A couple of the districts will
have fairly large cash balances within them due to funds not being utilized for
administration or other projects within or outside the district.
•Victoria Ponds (Redevelopment): We recommend developing a plan to utilize
approximately $490,000 in available increment since this district will need to be
decertified at the end of 2013 (since obligation will be paid off in August).
•Park Center (Housing): We recommend transferring $500,000 form Park
Center TIF district to the HRA development fund for the City’s housing
rehabilitation programs for TIF income qualified owners. In addition we
recommend transferring $185,000 annually through the term of the District for
these programs.
•Elmwood TIF District (Renewal & Renovation): We recommend utilizing
approximately $370,000 per year to pay on the City’s interfund loan for the
district (public road improvements) and for future public improvements related to
Highway 100 and Wooddale and 36th Avenues.
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 117
Recommendations
2.Decertification. The following three TIF districts need to be decertified
as follows:
HSTI. We have determined that the City has a potential liability of
approximately $145,000 in outstanding tax petitions. We
recommend the following:
• Retain $145,000 in the district until such time the tax petitions are either
stipulated or settled
• Return the remaining balance in the TIF account of $1,033,500 to the
County for redistribution
• Return the first half 2013 TIF receipts to the County for redistribution when
received in June
• Return the second half 2013 TIF receipts to the County for redistribution
when received in December
•Approve resolution decertifying TIF district
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 118
Recommendations
2.Decertification continued
•Victoria Ponds. The final payment for the PAYGO note is due to be made on August
1, 2013. We recommend that the City decertify this district after August 1, 2013.
•Return the second half 2013 TIF receipts to the County for redistribution when received in
December
•Oak Hill. This district was created under the JOBS bill which allowed office use in an
economic development district, as long as construction commenced by July 1, 2012.
Since the project has not yet moved forward
•we recommend decertifying this district because it will no longer qualifies as an economic
development TIF district
Note: The City may utilize its portion of the returned TIF receipts (from the HSTI
and Victoria Ponds Districts) of approximately $912,200 for any governmental
purpose
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 119
Recommendations
3.Look Backs. Currently the look back calculation is
required for Aquila Commons, which we recommend
completing as soon as possible.
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 120
Future Actions
1.Approval of pay off of 2004A TIF Bonds
Used to finance the Recreation Center expansion which included
an ice arena and an outdoor swimming pool/aquatic center
Source of funds are existing TIF balance of approximately
$700,000 in Highway 7 TIF district, $375,000 from the
Development Fund and $375,000 from the PIR fund
2.Approval of early decertification resolutions for HSTI, Victoria
Ponds and Oak Hill TIF districts
3.Approve plan for use of City’s portion of returned increment
from decertified districts (approximately $912,000)
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 121
Final Thoughts
1.St. Louis Park’s TIF districts are in overall good financial health
2.The City has opportunities to utilize funds from several districts
to augment its housing and redevelopment efforts
3.Redevelopment efforts have increased property valuations
significantly and justify the short term investment
Study Session Meeting of May 13, 2013 (Item No. 5)
Title: Annual TIF Management Report Page 122
Meeting: Study Session
Meeting Date: May 13, 2013
Discussion Item: 6
EXECUTIVE SUMMARY
TITLE: SWLRT Update
RECOMMENDED ACTION: No action required. The purpose of this discussion is to update
the Council on various items that are currently being discussed related to SW LRT, including a
report on the Beltline Circulation and Access Study conducted with the Beltline Station Area
Advisory Committee.
POLICY CONSIDERATION: What questions or issues does the Council have with the
information presented?
SUMMARY:
This is an update on the current activities related to SW LRT planning and engineering. A
tentative schedule for discussion on engineering design issues related to St. Louis Park is
attached. The discussion will also include a report from the process undertaken with the Beltline
Station Area Advisory Committee on Circulation and Access (report attached). This was a high
level planning report, and includes recommendations for further study of some of the concepts in
the report; Marie Cote from SRF Consulting will be present for the discussion.
Discussion at the meeting will include the following items:
1. Summary of Current Activities/Tentative Schedule
2. Operations and Maintenance Facility (OMF) site location update
3. Beltline Circulation and Access Study – presentation of recommendations for further
study
4. Other issues
Staff will continue to update the City Council at Study Sessions; the next update is tentatively
scheduled for May 28th.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable at this time.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Summary of Current Activities/Tentative Schedule
Beltline Station Area Circulation Study
Prepared by: Meg J. McMonigal, Planning and Zoning Supervisor
Reviewed by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, City Manager
Study Session Meeting of May 13, 2013 (Item No. 6) Page 2
Title: SWLRT Update
SW LRT Current Activities/Tentative Schedule May 13, 2013
Tentative Schedule TPAC BAC/CAC CMC Proposed City Council
Wooddale Station 4-24/4-25 4-22
Freight Rail 5-23 6-6 6-12 5-28 and ongoing
Louisiana Station 5-23 6-6 6-12 6-10
Beltline Station 5-23 6-6 6-12 6-10
Operations/Maintenance
Facility
Open House SLP 5-15
3-20 – 18 sites
4-11– 7 sites
4-20
5-16
6-13 – 2-3 sites
7-11 – 1 site
3-27/3-28
6-26/6-27
7-24/7-25
4-3
7-10?
8-7
4-22
5-13
5-28
7-8
7-22 or 8-12
Municipal Consent 4TH Quarter 2013
Beltline Station Area Circulation Study
BACKGROUND:
The Beltline Station Multimodal Access and Circulation Study was conducted to develop transportation
system alternatives that improve access and circulation for pedestrians, bicyclists, transit riders, as well as
trucks, buses and automobiles in the future station area. SRF Consulting developed concepts and issues
regarding possible roadway improvements in the Beltline LRT station area. A refined alignment study
Area Overview Layout
phase was subsequently initiated to further evaluate new roadway connections and intersection
improvements that were identified in the transportation system concepts. In February, August and
September of 2012, City Staff updated the City Council on Beltline LRT Station Area circulation and access
planning issues.
At the August 13, 2012 Study Session the Council gave Staff and consultants direction to work with the
Beltline LRT Station Area Advisory Committee to solicit input and study the various circulation options. This
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 3
report summarizes the Advisory Committee’s discussions, work and recommendations on which projects
have value to move forward.
OVERALL GOALS:
Overall, the goal is to maximize the success of the SW LRT line and the benefit of transit to the
community. Specifically for the Beltline Station Area, the following goals have been set out:
• Improve transportation system in area for station access for users: pedestrians, bikes, transit,
automobiles and trucks
• Create legible, direct, safe and comfortable routes – pedestrian, bike, bus, auto
• Prioritize pedestrian, bike and bus access to station area
• Work to achieve an integrated street network that retains access to existing businesses and
residential neighbors
• Minimize the impact on the existing businesses and residential neighbors
• Define the short, medium and long term improvements
ISSUES TO BE STUDIED:
The Beltline Advisory Committee focus was on the immediate station area - approximately within ½ mile of
it - keeping in mind the larger context and connections to surrounding areas in the city.
The issues reviewed by the Committee included:
A. CSAH 25
B. Raleigh Avenue connection
C. Park Glen connections
East to 32nd Street
North to Inglewood
South to 36th Street
D. Inglewood connection to north side of rail
E. Belt Line Boulevard
Design
Frontage roads
Grade separation
F. Ottawa Avenue connection and alternates
G. France Avenue
SUMMARY OF RECOMMENDATIONS:
The Beltline Station Area Advisory Group looked at a number of issues, spent time discussing and analyzing
them, and prioritized them as summarized in the table on the following page. Detailed explanation of the
discussion and recommendations are discussed below.
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 4
A. CSAH 25
CSAH 25 (extension of Highway 7) is a very wide roadway, with frontage roads on each side. It joins
with Minnetonka Boulevard to the east and funnels traffic to Lake Street in Minneapolis. The look and
feel of the roadway resembles more of a rural highway section than urban street.
The suggestion of turning this roadway into a multimodal “urban boulevard” while maintaining its
capacity has been generally supported. The look and feel of such a roadway would be similar to
Excelsior Boulevard. If the roadway can be narrowed, and the frontage roads reduced or eliminated,
additional property may be available to private property owners or for additional public facilities such
as for sidewalks, trails or storm water facilities.
The City has discussed this idea with Hennepin County Transportation Department officials (the road is
in County jurisdiction) and they are open to working with us on a new design.
It is recommended that the “urban boulevard” concept be pursued.
B. Raleigh Avenue connection
The idea of a north-south connection of Raleigh Avenue was reviewed. The intent was to provide an
alternate connection (to Belt Line Boulevard) between Minnetonka Boulevard and 36th Street.
South connection - Connecting to the south over the railroad tracks was considered. This would give
Nordic Ware trucks an alternate access to and from the factory if there was a connection. A closer look
at the extension across the railroad tracks showed a number of factors that made this connection
problematic.
Topography – the grade of the area from CSAH 25 to the tracks rises substantially, which would make it
a difficult maneuver for trucks. Nordic Ware indicated that this would be a disadvantage for truck
traffic. An at-grade crossing with the trail, light rail and freight rail would pose many complications and
be difficult to achieve.
Historic tower – the Peavey Grain Elevator is in this area, and very close to the location where a
roadway would have to be extended. The integrity of the structure would have to have to be evaluated
to ensure it would not be disturbed.
Parking – Nordic Ware employee parking is in the area, and a public street connection would eliminate
much of it. Nordic Ware was very concerned about losing employee parking.
City water tower – the city’s water tower sits directly south of the Peavey tower, across the railroad
tracks. Careful consideration of construction impacts would need to be evaluated if a roadway was
built near this location.
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 5
It is recommended that the southerly connection across the railroad tracks not be pursued, as it is
very complicated topographically, would not serve many users, and would not be considered
advantageous for the main user (Nordic Ware).
North connection – A north connection across CSAH 25 was drawn up and reviewed by Hennepin
County, MnDOT, and Nordic Ware representatives in addition to the Advisory Committee, city staff and
consultants.
Signal - A connection to the north across Raleigh would require a signal in order to have the desired
traffic movements. The spacing to the signal at the Highway 100 exit ramp is generally too close for
signalized access points, and is also undesirable for the traffic flow and functioning in the area. MnDOT
and County staff discussed the possibility of a Raleigh Ave intersection at CSAH 25 with city staff and
consultants, and noted it would be difficult to gain approvals for a signal because the low amount of
traffic movements and proven need; a signalized intersection would have to show substantial traffic
benefit s in order to make it both worth pursuing and to prove it meets required traffic warrants for a
signal.
Right-of-way – A look at the turning radii for trucks to use such an intersection shows that a relatively
large amount of right-of-way would be necessary for the trucks to actually turn on or off of CSAH 25.
Nordic Ware officials indicated that this would not be desirable, as it would not be helpful for truck
movements.
It is recommended that the northerly connection and intersection with CSAH 25 not be pursued, as
there are not many advantages to traffic flow including Nordic Ware trucks, and additional right-of-
way would be needed to accomplish turning movements.
C. Park Glen connections
East to 32nd Street – The intent would be to extend Park Glen to the east through a private parking lot
to connect with 32nd Street. Right-of-way would need to be acquired in St. Louis Park and Minneapolis.
There is a grade change at the City border as well.
City staff discussed the 32nd Street connection with Minneapolis City Staff and they indicated that
Minneapolis may be interested in working together to pursue this option.
North to Inglewood – A new connection from Park Glen to Inglewood was discussed, as a traffic reliever
for local movements. Inglewood would have to be connected across CSAH 25 to the north. An
additional option to connect Inglewood to the north side of the railroad tracks and build a backage
road along the rail tracks was also considered.
South to 36th Street – A connection from Park Glen west of Beltline Boulevard was looked at in several
different locations along property lines. This would also be a reliever for local traffic movements with
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 6
preliminary modeling showing approximately 500 vehicles would shift to this route from Beltline
Boulevard.
It is recommended that all of the Park Glen connections be considered to move forward with
additional study, and implemented as opportunity provides or a strong need is shown.
D. Inglewood Connection to north side of rail
A connection to Inglewood turning east-west as a parallel route – or a “backage” road along the north
side of the rail right-of-way was discussed. This alternative may be viable and desirable, however will
be dependent on the development pattern and needs.
E. Beltline Boulevard
Design – As the main spine roadway to and from the station area, several re-design concepts were
reviewed to improve traffic, reduce conflicts between pedestrian, bikes and vehicle traffic, and to
incorporate the sidewalk and trails plan for the area. Alternatives included 3-lane sections with either a
continuous left turn lane or a landscaped median with turn lanes at intersections (Sections attached).
A trail on the west side of Beltline Boulevard was included, as well as on-street bike lanes as shown in
the city’s sidewalk and trails plan. On-street parking is shown as a potential on the west side only.
Frontage roads – The south frontage roads to CSAH 25 are very close to the main intersection with
Beltline Boulevard, and are currently somewhat difficult to use for left turning movements. West of
Beltline the frontage road serves Nordic Ware and an office building to the west. Trucks use this access
road as it is the only way in and out of the Nordic Ware site. An option is to move the frontage road
connection with Beltline Blvd to the south to provide more distance from CSAH 25.
West of Beltline Boulevard the frontage road is also difficult to use. If CSAH 25 is modified to an urban
boulevard, there could be direct access to the properties south on CSAH 25, possibly eliminating the
need for the frontage road. Alternately, a “backage” road along the rail corridor could serve to access
the properties between the rail corridor and CSAH 25.
It is recommended that the city consider a 3-lane design with a landscaped median and on-street
parking on the west side of the street. It is also recommended that the frontage roads be modified by
moving the west side connection to Beltline to the south and adding direct access to CSAH 25 or
adding a backage road along the rail corridor.
Grade Separation Options
Several options for separating modes of traffic were considered:
Lower Beltline Boulevard –Lowering Beltline Blvd would keep the rail tracks and trail at-grade.
Lowering the roadway would be impacted by the water table, as it is fairly high in this area. It would be
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 7
difficult to provide sidewalk and trail connections from the CSAH 25 overpass to and from the regional
trail, and would create a longer route for connections to and from the station. A large retaining wall
would be needed, creating a barrier between the east and west sides of Beltline. The concept estimate
for this separation is $12 - $15 million.
Raise Freight Rail over Beltline Boulevard – Raising freight rail proves to be unmanageable because it
would have to extend very far on either side of Beltline, have major impact on existing bridges to the
east and west, impact Wooddale Avenue, impact the grades of adjacent properties and have a concept
level estimated cost of $10 - $15 million.
Raise LRT over Beltline Boulevard - Raising LRT has significantly fewer impacts than freight rail due to its
flexibility in profile design. It would also incur significant grading impact to adjacent properties and
would require retaining walls.
Raise or lower trail over/under Beltline Boulevard – Concept level estimates show a cost of $2 - $3
million for a bridge, and $3 -$4 million for a tunnel. Access to the station platform area for bikes might
be complicated and would have to be addressed.
It is recommended that raising freight rail over Beltline Blvd be eliminated from consideration. It is
recommended that the other options continue to be pursued and evaluated through the Preliminary
Engineering process.
F. Ottawa Avenue connection and alternates
Several options for Ottawa Avenue were looked at, including options for one-way pairs in the area, as
well as new designs within the existing roadway and with additional right-of-way. One-way pairs do
not work well because of connections to Minnetonka Blvd and impacts on residential uses. Options for
Ottawa Avenue itself (attached) do not provide an ideal solution however provide a starting point for
improving the direct connection to the station area.
It is recommended that additional study with the immediate neighbors in the Ottawa area be
undertaken to further look at the options and impacts to find a feasible alternative to improve
movements through the area, while minimizing impacts on properties and businesses.
G. France Avenue
France Avenue was looked at for connections. To the south, the Council previously determined a
connection should not be made. A connection to the north from Park Glen was considered and
determined to be a “medium” priority, dependent on other connections such as Inglewood and 32nd
Street. It was noted that the topographic grades make this a difficult connection.
It is recommended that extending France Avenue to the north continue to be an option in the future.
It is recommended that connecting France Avenue to the south not be further pursued.
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 8
Attachments:
• Summary Matrix
• Comment Matrix
• Area Overview Layout
• Grade separation graphics
• Beltline Boulevard sections
• Ottawa Avenue sections
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 9
Beltline Station Area Advisory Committee
Circulation and Access Study – May 13, 2013
S = Short term to 2018 (green)
M = Medium term 2018-23 (yellow)
L = Long term 2023 and beyond
Pink = do not pursue
Focus Area/Roadway Recommended Course of Action Priority
CSAH 25 Corridor Revise to a four-lane urban boulevard similar to Excelsior Blvd. S-M
Raleigh Ave N-S Connection
Do not pursue the N-S connection of Raleigh Ave due to
significant grade issues, impediments, additional at-grade
crossings of trail, freight and LRT, and minimal advantages or
X
Park Glen Rd Connection to 32nd St Support Park Glen Rd connection to 32nd St if and when
identified as a priority by the City of Minneapolis. S-M
Park Glen Rd Connection to 36th St Implement future connection(s) when opportunities become
available or as need is evidenced S
Inglewood Ave N-S Connection
Consider constructing Inglewood Ave from south of CSAH 25 to
Minnetonka Ave as a local alternate route to and from the
station.
M
Inglewood Ave extension to Park
Glen Rd
Consider an Inglewood Ave connection from Park Glen Rd to
Minnetonka Ave as a local alternate route to and from the
station. Preserve crossing option; consider trail crossing.
M
Beltline Blvd Roadway Section Pursue a 3-lane section design with on-street bike lanes, trail on
west side and landscaped median. S
South Frontage Rd west of Beltline
Blvd
Continue to pursue the feasibility of relocating the south frontage
road to the north to improve truck movements. S
South Frontage Rd east of Beltline
Blvd
Eliminate south frontage road when other accesses and
redevelopment opportunities become available, consistent with
the reconstruction of CSAH 25 to an urban roadway.
S
Grade Separation at Beltline
• Raise Freight Rail over
Beltline Blvd
Do not pursue raising freight rail due to very significant impacts
and costs. X
Grade Separation at Beltline
• LRT and Beltline Blvd
Pursue options for grade separation of Beltline - lowering
Beltline Blvd under freight and LRT may be difficult due to
significant water table impacts and costs. Consider option of
raising LRT and lowering Beltline Blvd to be above water table.
S
Grade Separation at Beltline
• Regional Trail grade
separated from Beltline
Pursue the grade separation of the regional trail – tunnel under
Beltline Blvd not preferable – pursue raising trail over Beltline
Blvd.
S
Ottawa Ave Roadway Section Undertake a neighborhood planning process to further study
options and impacts – one-way options do not appear to work. S
France Avenue to the north Consider connecting France Avenue to the north to connect to
CSAH 25. Topography makes this a difficult connection. M
France Avenue to the south Do not pursue connecting France Avenue to the south. X
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 10
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 11
0
scale in feet
LEGEND
H:\Projects\7775\HI-MU\LAYOUT\Beltline Blvd Grade Seperation and Regional Trail Xing\Beltline Blvd Grade Seperation.dgn12/6/2012
Job #
Beltline Boulevard Grade Separation and Regional Trail Crossing
Beltline Alignment Study
City of St. Louis Park
EX. RIGHT OF WAY
PROPERTY LINE
TRAFFIC SIGNAL
50 100
PROPOSED ROADWAY
PROPOSED RETAINING WALLS
PROPOSED BRIDGE
ACCESS TO LRT STATION
PROPOSED WALK/TRAIL
LRT TRACKS
PROPOSED
CHALLENGING
REALIGNMENT
FRONTAGE ROAD
WILL MAKE SOUTH
RETAINING WALL
PROPOSED SOUTH FRONTAGE ROADCSAH 25NORTH FRONTAGE ROADBELTLINE BLVD.PARK GLEN RD.
3
WALKS/TRAILS
AT-GRADE PROPOSED
WALKS/TRAILS
BELOW-GRADE PROPOSED
ROADWAY ELEVATIONS
8 FEET ABOVE PROPOSED
DEPTH APPROXIMATELY
AVERAGE WATER TABLE
CONSTRUCTION IMPACTS
RETAINING WALL
TRACK
FREIGHT RAIL
EXISTING
1
2
1 9
7
2
Figure 1A
ISSUES
PROPERTY ACQUISITION
COUNTY / STATE JURISDICTION
INTERSECTION SPACING / OPERATIONS
FRONTAGE ROAD SPACING / TRUCK ACCESS
ACCESS CONTROL3
1
2
7
9
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 12
2+00 3+00 4+00 5+00 6+00 7+00 8+00 9+00 10+00 11+00 12+00 13+00 14+00
150
160
170
180
CL
CL
CL
EXISTING TRACK
EXISTING TRAIL
PARK GLEN RD
HWY 7 167.009VPI 2+75.000ELEV. 166.696-0.50%
-3.50%
100.96’ V.C.VPI 6+85.000ELEV. 152.346+5.00%
300.00’ V.C.VPI 11+87.000ELEV. 177.446-2
.29
%
400.00’ V.C.172.569VPC 2+24.52 ELEV. 166.95VPT 3+25.48 ELEV. 164.93VPC 5+35.00 ELEV. 157.60VPT 8+35.00 ELEV. 159.85VPC 9+87.00 ELEV. 167.45VPT 13+87.00 ELEV. 172.87SOUTH FRONTAGE RD
100050
scale in feet
H:\Projects\7775\HI-MU\Base\7280_amv_pra.dgnFigure 1B
12/6/2012
7175
Beltline Boulevard Grade Separation
PROFILE REVIEW
City of St. Louis Park
EXISTING GROUND
PROFILE
PROPOSED
ELEVATION = 163.5
AVERAGE WATER TABLE
OF 4.4 FEET
GRADE CHANGE 012 3
4
5 6 7
8 9
10 11
12 13
14
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 13
December 6, 2012
City of St. Louis Park
Beltline Station: Grade Separated LRT, Freight Rail and Trail (Perspective View Looking North)
Beltline Alignment Study
Figure 2A
Issues/Opportunities:
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Regional Trail
Beltline Boulevard
Park Glen Road
CSAH 25
Future SW LRT Station
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 14
December 6, 2012
City of St. Louis Park
Figure 2BBeltline Station: Grade Separated LRT, Freight Rail and Trail (Perspective View Looking North)
Beltline Alignment Study
Issues/Opportunities:
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IUHLJKWUDLORUOLJKWUDLO
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RI%HOWOLQH%RXOHYDUG
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1RUGLF:DUHLVGHVLUHGWREHVKLIWHGWR
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Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 15
December 6, 2012
City of St. Louis Park
Beltline Station: Grade Separated LRT, Freight Rail and Trail (Perspective View Looking North)
Beltline Alignment Study
Figure 2C
Issues/Opportunities:
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Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 16
97 98 99 100 101 102 103 104 105 106 107 108 109 110
111
112
100+00 101+00 102+00 103+00 104+00 105+00 106+00 107+00 108+00 109+00 110+00 111+00 112+0099+0098+0097+00
BELTLINE BLVD.CL891.661VPI 100+75.000ELEV. 890.086-0.90%
+5.00%300.00’ V.C.VPI 104+64.270ELEV. 909.550+5.00%-5.00%120.00’ V.C.VPI 110+25.000ELEV. 881.514-5.00%-0.91%
300.00’ V.C.879.921ELEV. 891.44VPC 99+25.00 ELEV. 897.59VPT 102+25.00 ELEV. 889.01VPC 108+75.00 ELEV. 880.15VPT 111+75.00 ELEV. 906.55VPC 104+04.27 ELEV. 906.55VPT 105+24.27 PROFILE
PROPOSED
EXISTING GROUND
TABLE LOCATION
AVERAGE WATER
0
scale in feet
LEGEND
H:\Projects\7775\HI-MU\LAYOUT\Beltline Blvd Grade Seperation and Regional Trail Xing\Regional Trail Crossing BLB - Bridge Option.dgnBeltline Alignment Study
City of St. Louis Park
EX. RIGHT OF WAY
PROPERTY LINE
50 100 BELTLINE BLVD.870
880
890
900
910
Regional Trail Crossing Beltline Blvd. - Bridge Option
870
880
890
900
910
LENGTH = 100’
PEDESTRIAN BRIDGE
PROPOSED 12’ WIDE
STRUCTURE
TRAIL ON
STRUCTURE
TRAIL ON
ON STRUCTURE
PROPOSED TRAIL
ON PEDESTRIAN BRIDGE
PROPOSED TRAIL
OFF STRUCTURE
PROPOSED TRAIL
12/6/2012
Job #7931
Figure 3A
ESTIMATED COST RANGE = $2 TO 3 MILLION
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 17
December 6, 2012
City of St. Louis Park
R e g i o n a l Tr a i l
Beltline Boulevard
Park Glen Road
CSAH 25
Future SW LRT Station
Figure 3BBeltline Station: At Grade LRT, Freight Rail and Regional Trail Crossing Beltline Blvd. - Bridge Option (Perspective View Looking North)
Beltline Alignment Study
Issues/Opportunities:
• No traffic backups on Beltline
Boulevard related to the regional trail.
• Backups will orccur due to freight rail
and light rail.
• Grade separated regional trail crossing
to be constructed on structural
elements in order to limit grading
impacts to adjacent properties.
• Regional trail crossing to be
constructed with up to 5 percent
grades.
• Regional trail bridge does not include
connection to LRT station.
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 18
97 98 99 100 101 102 103 104 105 106 107 108 109 110
111
112
100+00 101+00 102+00 103+00 104+00 105+00 106+00 107+00 108+00 109+00 110+00 111+00 112+00
CL
99+0098+0097+00 892.578VPI 99+44.000ELEV. 891.268-0.91%
-5.00%200.00’ V.C.VPI 103+00.000ELEV. 873.468-5.00%-0.50%
165.00’ V.C.VPI 106+00.000ELEV. 871.968-0.50%
+3.00%
120.00’ V.C.VPI 109+42.000ELEV. 882.228+3.00%
-0.90%
200.00’ V.C.880.806VPC 98+44.00 ELEV. 892.18VPT 100+44.00 ELEV. 886.27VPC 108+42.00 ELEV. 879.23VPT 110+42.00 ELEV. 881.33ELEV. 877.59VPC 102+17.50 ELEV. 873.06VPT 103+82.50 ELEV. 872.27VPC 105+40.00 ELEV. 873.77VPT 106+60.00 EXISTING GROUND
PROFILE
PROPOSED
BELTLINE BLVD.
TABLE LOCATION
AVERAGE WATER
0
scale in feet
LEGEND
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City of St. Louis Park
EX. RIGHT OF WAY
PROPERTY LINE50100
PROPOSED RETAINING WALLSBELTLINE BLVD.860
870
880
890
900
Regional Trail Crossing Beltline Blvd. - Tunnel Option
860
870
880
890
900
LENGTH = 124’
PEDESTRIAN TUNNEL
PROPOSED 12’ x 10’
RETAINING WALLS
CAST-IN-PLACE
RETAINING WALLS
CAST-IN-PLACE
OUTSIDE OF TUNNEL
PROPOSED TRAIL
WITHIN TUNNEL
PROPOSED TRAIL
12/6/2012
Job #7931
Figure 4A
ESTIMATED COST RANGE = $3 TO 4 MILLION
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 19
CL
CL
CL
CL
Beltline Existing Typical Section
Beltline Alternative 1 - Continious Left-Turn Lane Section
Thru Lane
Thru Lane
Thru Lane
Thru Lane
Blvd
Blvd
Parking
Bay/Blvd
Thru Lane Thru Lane
Center Left
Turn Lane
Median
Median
Thru Lane
Thru Lane
Thru Lane
Thru Lane
Blvd
Blvd
Blvd
Blvd
Bike
Lane
Bike
Lane
Bike
Lane
Bike
Lane
Bike
Lane
Bike
Lane
Trail
Trail
Trail
Trail
Trail
Trail
Trail
12’
11’
13’
13’
8’
8’
8’
12’12’12’
11’
13’
13’
12’
16’
16’
8’
8’
8’
8’
5’
6’
6’
5’
6’
6’
10’
10’
10’
10’
10’
10’
10’
Scale 1”=10’
010
Scale 1”=10’
010
48’ Roadway
44’ Roadway
54’ Roadway
54’ Roadway
80’ ROW
90’ ROW
90’ ROW
80’ ROW
Beltline Alternative 2 - Two-Lane with Left-Turn Lane Section
Beltline Alternative 2 A-Two-Lane with Left-Turn Lane and Parking Bays Section
Scale 1”=10’
010
Scale 1”=10’
010
West
West
West
West
East
East
East
East
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 20
CL
Ottawa Existing Typical Section
Thru Lane Thru Lane ParkingParking WalkWalk
4.5’4.5’
Scale 1”=10’
010
31’ Roadway
40’ ROW
West East
Ottawa Alternative 1 Two-Lane with No Parking Section
40’ ROW
Thru Lane Thru Lane WalkTrail
4.5’13’ 13’9.5’
Scale 1”=10’
010
26’ Roadway
West East
CL
Ottawa Alternative 2 Share The Road with No Parking Section
44’ ROW
CL
Thru Lane Thru Lane WalkWalk
6’16’16’6’
32’ Roadway
Scale 1”=10’
010
West East
Ottawa Alternative 3 Bike Lanes with No Parking Section
46’ ROW
CL
Thru LaneBike
Lane
Bike
Lane
Thru Lane WalkWalk
6’11’6’6’11’6’
34’ Roadway
Scale 1”=10’
010
West East
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 21
Ottawa Alternative 4 Multimodal Corridor with Parking Bays Section
Ottawa Alternative 5 Multimodal Corridor with Bike Lanes and Parking Bays Section
48’ ROW
Thru LaneParking Bay/
Blvd
Thru Lane WalkTrail
6’11’8’13’10’
24’ Roadway
CL
Scale 1”=10’
010
West East
CL
60’ ROW
Thru LaneParking Bay/
Blvd
Thru Lane Walk
6’11’8’11’
32’ Roadway
Parking Bay/
Blvd
8’
Walk
6’
Bike
Lane
Bike
Lane
5’5’
Scale 1”=10’
010
West East
Study Session Meeting of May 13, 2013 (Item No. 6)
Title: SWLRT Update Page 22
Meeting: Study Session
Meeting Date: May 13, 2013
Written Report: 7
EXECUTIVE SUMMARY
TITLE: Refunding of 2007A and 2008A Utility Revenue Bonds
RECOMMENDED ACTION: No action at this time. This report is being provided as an
advisory of an item that is proposed to be included on the consent agenda at the Regular City
Council meeting on May 20, 2013. At that time the City Council will be asked to adopt a
resolution calling for the sale of bonds to allow for the refunding to occur.
POLICY CONSIDERATION:
• Does the City Council desire to refund the 2007A Utility Revenue Bonds?
• Does the City Council desire to refund the 2008A Utility Revenue Bonds?
SUMMARY: Staff is recommending refunding of the 2007A Utility Revenue Bonds to take
advantage of lower interest rates. These Bonds were issued for the MSC construction. There is
$2,240,000 remaining on the Bonds. By refunding these bonds it is estimated that the City
would save approximately $170,546 in interest payments over the remaining life of the Bonds,
which will be paid off in 2023.
Staff is also recommending refunding of the 2008A Utility Revenue Bonds to take advantage of
lower interest rates. These Bonds were issued for the MSC construction. There is $1,925,000
remaining on the Bonds. By refunding these bonds it is estimated that the City would save
approximately $62,229 in interest payments over the remaining life of the Bonds, which will be
paid off in 2020.
Next Steps:
May 20th - City Council Meeting to Call for Sale of the Bonds - Consent item
June 17th - City Council Meeting to Award Sale of the Bonds- Ehlers staff in attendance
July 10th - Proposed closing date of Bonds – No Council action required
FINANCIAL OR BUDGET CONSIDERATION: By taking advantage of lower interest rates,
it is estimated that the City would save approximately $232,775 in interest costs over the
remaining life of the two Bonds.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Excerpts from Ehlers Refunding Report
Prepared by: Steven Heintz, Finance Supervisor
Reviewed by: Brian A. Swanson, Controller and Nancy Deno, Deputy City Manager
Approved by: Tom Harmening, City Manager
Study Session Meeting of May 13, 2013 (Item No. 7)
Title: Refunding of 2007A and 2008A Utility Revenue Bonds Page 2
Study Session Meeting of May 13, 2013 (Item No. 7)
Title: Refunding of 2007A and 2008A Utility Revenue Bonds Page 3
Study Session Meeting of May 13, 2013 (Item No. 7)
Title: Refunding of 2007A and 2008A Utility Revenue Bonds Page 4
Meeting: Study Session
Meeting Date: May 13, 2013
Written Report: 8
EXECUTIVE SUMMARY
TITLE: Knollwood Area Stormwater Plan
RECOMMENDED ACTION: No action at this time. The purpose of this report is to provide
an update on efforts to address the stormwater management needs at the Knollwood Shopping
Center.
POLICY CONSIDERATION: None at this time. Please let staff know of any questions or
concerns that you might have.
SUMMARY: Rouse Companies, the owners of the Knollwood Shopping Center, are proposing
to make significant changes to both the Knollwood building and its parking lot. These changes
will trigger the need to address the stormwater management issues that exist today on the site.
Today, Knollwood Center is not in compliance with current stormwater management rules.
Bringing Knollwood into compliance with the stormwater rules was a condition of approval of
the previous amendment to the Knollwood Planned Unit Development (PUD) permit in 2004.
The Resolution of approval, Resolution 04-54 stated:
“On-site storm water management must be brought into compliance with City standards
when any future projects affect the parking lot or with any future building expansions.”
Typically, building expensive below ground storage tanks would be the solution to the
stormwater management issues on a site like Knollwood. Since virtually the entire site is covered
with buildings or impervious surface (parking lots, sidewalks, etc) there is no room for surface
ponding on site and the only solution is to handle the stormwater below ground.
Discussions with the Minnehaha Creek Watershed District (MCWD) have identified an
alternative means of addressing the stormwater issue. There may be an opportunity to address
both Knollwood’s stormwater issues and issues in the broader area by creating a stormwater plan
that encompasses a larger area. MCWD has offered to fund and initiate a study that would
attempt to create a sub-area stormwater management plan. Rouse Companies is supporting this
planning effort and with support from St. Louis Park, the MCWD will begin the study shortly.
The intent is to prepare a stormwater management concept plan for the Knollwood area, estimate
the cost of the project and evaluate the plans viability. The plan and results of the MCWD’s
analysis will be discussed at a future City Council Study Session.
FINANCIAL OR BUDGET CONSIDERATION: MCWD will fund the study plan.
VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental
stewardship. We will increase environmental consciousness and responsibility in all areas of city
business.
SUPPORTING DOCUMENTS: None
Prepared by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, City Manager