HomeMy WebLinkAbout99-13 - ADMIN Resolution - Economic Development Authority - 1999/09/21IaOilIII. MIJKelQ1K[I-I I i M�
ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
CITY OF ST. LOUIS PARK
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION ADOPTING THE MODIFICATION TO THE REDEVELOPMENT
PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND ADOPTING THE
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE
PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING
DISTRICT THEREFORE
WHEREAS, it has been proposed that the Board of Commissioners (the "Board") of the
Economic Development Authority (the "EDA") for the City of St. Louis Park (the "City") adopt the
Modification to the Redevelopment Plan for Redevelopment Project No. 1 and modify the Park
Center Boulevard Housing Tax Increment Financing District and adopt the Modification to the Tax
Increment Financing Plan therefore, (collectively, the "Modifications"), all pursuant to and in
conformity with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081, and
Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modifications and
presented for the Board's consideration; and
WHEREAS, the EDA has investigated the facts relating to the Modifications and has caused
the Modifications to be prepared; and
WHEREAS, the proposed developments as described in the Modifications, in the opinion of
the EDA, would not reasonably be expected to occur solely through private investment within the
reasonable foreseeable future and, therefore, the use of tax increment financing is deemed necessary;
and
WHEREAS, the EDA has performed all actions required by law to be performed prior to the
adoption of the Modifications, including but not limited to, notification of Hennepin County and
School District No. 283 having taxing jurisdiction over the property to be included in Park Center
Boulevard Housing Tax Increment Financing District, notice of the proposed modification of an
existing redevelopment/housing district to the local county commissioner, a request for review of and
written comment on the Modifications by the City Planning Commission, and a request that the
Council schedule a public hearing on the Modifications upon published notice as required by law.
EDA Resolution No. 99-13
-2-
NOW THEREFORE, BE IT RESOLVED by the Board as follows:
1. The EDA hereby finds that Park Center Boulevard Housing Tax Increment Financing
District as modified herein is in the public interest and is a "housing district" under Minnesota
Statutes, Section 469.174, subd.l l and finds that the adoption of the proposed Modifications will
advance the EDA's and City's objectives of encouraging development within Redevelopment Project
No, 1.
2. Conditioned upon the approval thereof by the City Council following its public
hearing thereon, the Modifications, as presented to the EDA on this date, are hereby approved and
adopted and shall be placed on file in the office of the City Manager.
3. Upon approval of the Modifications by the City Council, the staff, the EDA's advisors
and legal counsel are authorized and directed to proceed with the implementation of the
Modifications and for this purpose to negotiate, draft, prepare and present to this Board for its
consideration all further plans, resolutions, documents and contracts necessary for this purpose.
Approval of the Modifications does not constitute approval of any project or a Development
Agreement with any developer.
4. Upon approval of the Modifications by the City Council, the Economic Development
Director is authorized to forward a copy of the Modifications to the Minnesota Department of
Revenue pursuant to Minnesota Statutes 469.175, subdivision 2.
5. The City Manager is authorized and directed to forward a copy of the Modifications to
the Hennepin County Auditor and request that the Auditor certify the original tax capacity of Park
Center Boulevard Housing Tax Increment Financing District as described in the Modifications, all in
accordance with Minnesota Statutes 469.177.
Reviewed for Administration: Adopted by the Economic Development Authority
September 21, 1999
xecutive Director
Attest:
Se etary
(411
President
Draft as ofAugust 18, 1999
Draft for Fiscal Implication Correspondence
REDEVELOPMENT PLAN
for
REDEVELOPMENT PROJECT NO. i
and the
MODIFIED TAX INCREMENT FINANCING PLAN
for
THE PARK CENTER BOULEVARD HOUSING TAX INCREMENT
FINANCING DISTRICT
(A HOUSING TAX INCREMENT FINANCING DISTRICT)
ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
CITY OF ST. LOUIS PARK
COUNTY OF HENNEPIN
STATE OF MINNESOTA
Vt_
District Established: October 7, 1996
Public Hearing on the Modification: September 21, 1999
Modification Approved:
Prepared by:
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, Minnesota 55113-1105
Phone: (651) 697-8500
Fax: (651)697-8555
E-mail: info@ehlers-inc.com
Web Site: www.chlers-ine.com
I
TABLE OF CONTENTS
SECTION I
MODIFIED REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 ........ 1-1
SECTION II
TAX INCREMENT PLAN FOR THE
PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT .... 2-1
Subsection 2-1.
Forward ................................ .............................
2-1
Subsection 2-2.
Statutory Authority ....................................................2-1
Subsection 2-3.
Statement of Objectives ................................................
2-1
Subsection 2-4.
Redevelopment Plan Overview ...........................................
2-1
Subsection 2-5.
Legal Description of Property of the
Park Center Boulevard Housing Tax Increment Financing District ...............
2-2
Subsection 2-6.
Classification of the Park Center Boulevard Housing
Tax Increment Financing District .........................................
2-2
Subsection 2-7.
Original Tax Capacity and Tax Rate .......................................
2-2
Subsection 2-8.
Estimated Captured Net Tax Capacity Value/Increment .......................
2-3
Subsection 2-9.
Property To Be Acquired...............................................2-3
Subsection 2-10.
Uses of Funds ........................................................
2-3
Subsection 2-11.
Sources of Revenue/Bonded Indebtedness ..................................
2-4
Subsection 2-12.
Duration of the Park Center Boulevard Housing Tax Increment Financing District
2-5
Subsection 2-13.
Estimated Impact on Other Taxing Jurisdictions .............................
..
2-5
Subsection 2-14.
Modifications to the Park Center Boulevard Housing
Tax Increment Financing District .........................................
2-6
Subsection 2-15.
Administrative Expenses ................................................
2-6
Subsection 2-16.
Limitation of Increment................................................2-7
Subsection 2-17.
Use of Tax Increment ..................................................
2-7
Subsection 2-18.
Notification of Prior Planned Improvements ................................
2-8
Subsection 2-19.
Excess Tax Increments.................................................2-8
Subsection 2-20.
Requirements for Agreements with the Developer ............................
2-9
Subsection 2-21.
Assessment Agreements................................................2-9
Subsection 2-22.
Administration of the Park Center Boulevard Housing
Tax Increment Financing District .........................................
2-9
Subsection 2-23.
Financial Reporting Requirements........................................2-9
Subsection 2-24.
Municipal Approval and Public Purpose ..................................
2-11
Subsection 2-25.
Fiscal Disparities Election ..............................................
2-12
Subsection 2-26.
Other Limitations on the Use of Tax Increment .................... . .,.-,,:.,.....
2-13
Subsection 2-27.
State Tax Increment Financing Aid ......................................
2-13
Subsection 2-28.
Use of Tax Increment from Housing Districts ..............................:
2-14
Subsection 2-29.
County Road Costs...................................................2-14
Subsection 2-30.
Wage and Job Goals ..................................................
2-14
Subsection 2-31.
Summary ...........................................................2
-14
APPENDIX A
BOUNDARY MAPS OF REDEVELOPMENT PROJECT NO. I AND
THE PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT ... A-1
APPENDIX B
LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
THE PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT ... B-1
APPENDIX C
TAX INCREMENT CASH FLOW FOR
THE PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT ... C-1
SECTION I
MODIFIED REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1
The following property was included in the Redevelopment Project area as a result of the October 7, 1996 Plan
modifications. The property is also known as the Park Center Boulevard Housing Tax Increment District:
PID Numbers:
06-028-24-33-0013 (a portion of as follows:)
The south 40.00 feet of Lot 1, Block 2, PARK CENTER, according to the recorded plat thereof,
Hennepin County, Minnesota, and the north 145.00 feet of the south 185.00 feet of the east 215.00 feet of
said Lot 1.
See attached map in Appendix A showing the Bd undaries of
Redevelopment Project No. 1 and the Park Center Housing Taz Increment Financing District.
City of St. Louis Park Modification to the Redevelopment Plan for Redevelopment Project No. 1 1-1
SECTION II
MODIFICATION TO THE TAX INCREMENT PLAN FOR
THE PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT
Subsection 2-1. Forward
The City, staff and consultants have prepared the following information to expedite and create the Park Center
Boulevard Housing Tax Increment Financing District ("Park Center TIF District') in Redevelopment Project No. 1.
To facilitate the establishment of the Park Center TIF District, portions of one parcel that is currently located within
the Excelsior Boulevard Tac Increment Financing District will be decertified and recertified in the Park Center TIF
District. The development expected to occur in the Park Center TIF District consists of 45 units of senior assisted
living rental housing.
(AS MODIFIED - SEPTEMBER 21, 1999)
The original 45 units of senior assisted living housing were completed inIV97. A second phase of approximately
45 units will be added to the Park Center TIF District. To facilitate the second phase, portions of two adjacent
parcels located in the Excelsior Boulevard Tax Increment Financing District will be decertified and recertified
in the Park Center TIF District (See maps in Exhibit A). The area within the Park Center TIF District will be
replatted in 1999. The original phase of housing development was financed through a City interfund loan of
approximately $413,000 of principal plus accrued interest. (Approximately $87,000 was dedicated to the project
as a local contribution up -front creating a total assistance to the developer of $500,000). Due to changes in the
property tax class rate structure, tax increments have been lower than expected and the developer has submitted
deficiency payments to the City to assist in the repayment of the interfund loan. No tax increment assistance
will be offered to the second phase of the assisted living project. Instead, it is contemplated that the developer
will make a up -front shortfall payment to the City in 1999. The shortfall payment, plus tax increments received
through 2004 or 2005 will repay the City interfund loan. The City may then dedicate tax increments to other
eligible housing developments within Redevelopment Project No. 1 or decertify the Park Center TIF District.
Subsection 2-2. Statutory Authoritv
Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to
occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes, Sections 479.174 through
479.179, inclusive, as amended the ("Tax Increment Financing Act' or "TIF Act') to assist in financing eligible
activities related to these development needs.
This Section contains the Tax Increment Financing Plan for the Park Center TIF District. Other relevant information
is contained in the Redevelopment Plan for Redevelopment Project No. 1.
Subsection 2-3. Statement of Obiectives
The Park Center TIF District currently consists of portions of one parcel of land. The Park Center TIF District is a
housing district. The Park Center TIF District is expected to achieve many of the objectives set forth the section
"Redevelopment Plan Objectives" in the Redevelopment Plan.
The activities contemplated in the present Redevelopment Plan and Tax Increment Financing Plan do not preclude
the undertaking of other development and redevelopment activities. These activities are anticipated to occur over the
life of the tax increment district.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-1
Subsection 2-4. Redevelopment Plan Overview
1. Property to be Acquired - Selected property located within the Park
Center TIF District by the City and is further described in Section 2.7 of
this Plan.
2. Relocation - Complete relocation services are available pursuant to
Minnesota Statutes, Chapter 117 and other relevant state and federal
laws.
3. Upon approval of the developer's plan relating to the project and
completion of the necessary legal requirements, the City may sell to the
developer selected properties that they may acquire within the Park
Center TIF District or may lease land or facilities to the developer.
4. The City may perform or provide for some or all necessary acquisition,
construction, relocation, demolition, and required utilities and public
streets work within the Park Center TIF District. "2�-
Subsection 2-5. Legal Description of Property of the Park Center Boulevard Housing Tax Increment
Financing District
The Park Center TIF District encompasses all property and adjacent rights-of-way identified by the parcel number
below:
06-028-24-33-0013 (a portion of)
See the map in Appendix A for further information on the location of the Park Center TIF District.
(AS MODIFIED - SEPTEMBER 21, 1999)
The Park Center TIF District will consist of one parcel of property known under a replatted name of Silvercrest
Addition, Block 1, Lot 2. Currently the proposed district expansion consists of one full parcel in the existing
district (06-028-24-33-0017) plus portions of two additional parcels (06-028-24-33-0013 and 06-028-24-33-0004).
See the map in Appendix A for further information.
Subsection 2-6. Classification of the Park Center Boulevard Housing Tax Increment Financing District
The City, in determining the need to create a tax increment financing district in accordance with Minnesota Statutes,
Section 469.174 to 469.179, as amended, inclusive, find that Park Center TIF District to be established as a housing
district pursuant to Minnesota Statutes, Section 469.174, Subdivision I 1 as defined below:
"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, as defined
in chapter 462A, Title H of the National Housing Act of 1934, the National Housing Act of 1959, the United
States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar
present or future federal, state, or municipal legislation, or the regulations promulgated under any of those
acts. A project does not quay under this subdivision if the fair market value of the improvements which
are constructed for commercial uses or for uses other than low and moderate income housing consists of
more than 20 percent of the total fair market value of the planned improvements in the development plan or
agreement. The fair market value of the improvements may be determined using the cost of construction,
capitalized income, or other appropriate method of estimating market value.
In meeting the statutory criteria described above, the City relies on the following facts and findings:
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-2
1. The Park Center TIF District consists of a portion of I parcel.
2. The units will meet one of the following requirements:
■ At least 20% of the units will be occupied by persons with incomes at 50% or less of median
gross income ($19,100 for 1 person in 1996);
■ At least 40% of the units will be occupied by persons with incomes at 60% or less of median
gross income, ($22,920 for I person in 1996); or
■ At least 50% of the units will be occupied by persons with incomes at 80% or less of median
gross income ($29,100 for 1 person in 1996).
(AS MODIFIED - SEPTEMBER 21, 1999)
■ At least 20% of the units will be occupied by persons with incomes at 50% or less of
median gross income ($22,250 for i person in 1999);
■ At least 40% of the units will be occupied by persons with incomes at 60% or less of
median gross income, ($26,700 for I person in 1999); or
■ At least 50% of the units will be occupied by persons with incomes at 80% or less of
median gross income ($33,450 for 1 person in 1999).
Subsection 2-7. Original Tax Capacity and Tax Rate
Pursuant to Minnesota Statutes, Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the Original Net
Tax Capacity (ONTC) as certified for the Park Center TIF District is based on the market values placed on the
property by the assessor in 1996 for taxes payable 1997. Pursuant to Section 469.177, Subds. 1 and 2, of the Tax
Increment Financing Act, the County Auditor shall certify in each year (beginning in the payment year 1998) the
amount by which the original value has increased or decreased as a result of a change in tax exempt property within
the Tax Increment Financing District, reduction or enlargement of the Tax Increment Financing District or changes
in connection with previously issued building permits. In any year in which the current Net Tax Capacity value of
the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City.
The County Auditor shall certify in each year after the date the ONTC was certified (beginning in payment year 1998),
the amount the ONTC has increased or decreased as a result of:
1. change in tax exempt status of property;
2. reduction or enlargement of the geographic boundaries of the district;
3. change due to adjustments, negotiated or court-ordered abatements;
4. change in the use of the property and classification; or
5. change in state law governing class rates.
The original local tax rate for the Park Center TIF District will be the local tax rate for taxes payable 1997.
The Original Tax Capacity and the Original Local Tax Rate for the Park Center TIF District appear in the table below.
Original Tax Capacity Value 15,836
Original Tax Rate 1.401150
(AS MODIFIED - SEPTEMBER 21, 1999)
The Tax Capacity Value is modified as shown on Appendix C.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-3
bC LD 77 ✓J0.0 I'I LnLcrto a noav�.lni co
r.a�c
Subsection 2-8. Estimated Captured Net Tax Capacity Value/Increment
Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177. Subdivision
1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the Park Center TIF District, within Redevelopment
Project No. 1, upon completion of the project, will annually approximate tax increment revenues as shown in the table
below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and
current expenditures, beginning in the tax year payable 1998, The project tax capacity listed is an estimate of values
when the project is completed.
Estimated Tax Capacity Upon Completion of Project 107,636
Estimated Captured Tax Capacity 91.800
Percent Retained by Authority, 100%
Estimated Annual Tax Increment 128,626
(AS MODIFIED -SEPTEMBER 21, 1999)
The Captured Tax Capacity Value is modified as shown on Appendix C.
subsection 2.9. Propertv To Be Acauired
The City may acquire any parcel within the Park Center TIF District including interior and adjacent street rights of
way.
1. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more
of the following: storm sewer improvements; provide land for needed public streets. utilities and facilities;
carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and
objectives set forth in this plan.
2. The following are conditions tinder which properties not designated to be acquired may be acquired:
The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in
order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken
only when there is assurance of funding to finance the acquisition and related costs.
Subsection 2-10. Uses of Funds
The estimate of public costs and uses of funds associated with the Park Center TIF District is outlined in the following
table:
City or St. Louts Park Modification to the TIF Plan for the Park Ccnter Boulevard mousing TIF District 2.4
SEP 15 '99 08:31AM EHLERS & RSSOCIRTES P.2i2
Subsection 2-8. )estimated Captured Net Tax Capacity Value/Increment
Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177, Subdivision
I, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the Park Center TIF District, within Redevelopment
Project No. 1, upon completion of the project, will annually approximate tax increment revenues as shown in the table
below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and
current expenditures, beginning in the tax year payable 1998. The project tax capacity listed is an estimate of values
when the project is completed.
Estimated Tax Capacity Upon Completion of Project
107,636
Estimated Captured Tax Capacity
91.800
Percent Retained by Authority
100%
Estimated Annual Tax Increment
128,626
(AS MODIFIED - SEPTEMBER 21, 1999)
The Captured Tax Capacity Value is modified as shown on Appendix C.
Subsection 2-9. Property To Be Acquired
The City may acquire any parcel within the Park Center TIF District including interior and adjacent street rights of
way.
1. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more
of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities;
carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and
objectives set forth in this plan.
2. The following are conditions tinder which properties not designated to be acquired may be acquired:
The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in
order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken
only when there is assurance of funding to finance the acquisition and related costs.
Subsection 2-10. Uses of Funds
The estimate of public costs and uses of funds associated with the Park Center TIF District is outlined in the following
table:
City of.St. Legis Park Modification to the TIF Plan for the Park Ceptor Boulevard Housing TIF District 2.4
Uses of Funds
Land acquisition
$500,000
Site improvements
150,000
Public utilities
150,000
Other public improvements
500,000
Bond principal payments
1,500,000
Interest
4,000,000
Administrative
N� 200,000
TOTAL
$7,000,000
Estimated costs associated with the Park Center Boulevard Housing Tax Increment Financing District are subject to
change. The cost of all activities to be considered for tax increment financing will not exceed without formal
modification of the budget above pursuant to the applicable statutory requirements.
(AS MODIFIED - SEPTEMBER 21, 1999)
It is not anticipated that the second phase of the assisted living housing development will increase the estimated
amount of total expenditures in the TIF District. Tax increments for any of the costs listed above maybe spent
for Phases I and II of the housing facility within the district, and for and any "housing project" as defined in
Minnesota Statutes 469.174, Subdivision 11, located anywhere in the Redevelopment Project No. 1.
Subsection 2-11. - Sources of Revenue/Bonded Indebtedness
Public improvements costs, acquisition, relocation, and site preparation costs and other costs outlined in the Uses of
Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to use
other sources of revenue legally applicable to the Redevelopment Plan and the Tax Increment Financing Plan,
including, but not limited to, special assessments, general property taxes, state aid for road maintenance and
construction, proceeds from the sale of land, other contributions from the Developer and investment income, to pay
for the Estimated Public Costs.
The City reserves the right to incur bonded indebtedness as a result of the Tax Increment Financing Plan. As presently
proposed, the implementation of the plan for the development of the Park Center TIF District will require a
combination of a loan, bond issue and revenue notes of approximately $1,500,000. Additional indebtedness may be
required to finance other authorized activities.
This provision does not obligate the City to incur debt. The City will issue bonds only upon the determination that
such action is in the best interest of the City. The City may also finance the activities to be undertaken pursuant to
the Tax Increment Financing Plan through loans from funds of the City or to reimburse the Developer on a "pay-as-
you-go" basis for eligible activities paid for by the Developer.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2.5
Uses of Funds
Land acquisition
$500,000
Site improvements
150,000
Public utilities
150,000
Other public improvements
500,000
Bond principal payments
1,500,000
Interest
4,000,000
Administrative
N+ 200,000
TOTAL
$7,000,000
Estimated costs associated with the Park Center Boulevard Housing Tax Increment Financing District are subject to
change. The cost of all activities to be considered for tax increment financing will not exceed without formal
modification of the budget above pursuant to the applicable statutory requirements.
(AS MODIFIED - SEPTEMBER 21, 1999)
It is not anticipated that the second phase of the assisted living housing development will increase the estimated
amount of total expenditures in the TIF District. Tax increments for any of the costs listed above maybe spent
for Phases I and II of the housing facility within the district, and for and any "housing project" as defined in
Minnesota Statutes 469.174, Subdivsion 11, located anywhere in the Redevelopment Project No. 1.
Subsection 2-11. Sources of Revenue/Bonded Indebtedness
Public improvements costs, acquisition, relocation, and site preparation costs and other costs outlined in the Uses of
Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to use
other sources of revenue legally applicable to the Redevelopment Plan and the Tax Increment Financing Plan,
including, but not limited to, special assessments, general property taxes, state aid for road maintenance and
construction, proceeds from the sale of land, other contributions from the Developer and investment income, to pay
for the Estimated Public Costs.
The City reserves the right to incur bonded indebtedness as a result of the Tax Increment Financing Plan. As presently
proposed, the implementation of the plan for the development of the Park Center TIF District will require a
combination of a loan, bond issue and revenue notes of approximately $1,500,000. Additional indebtedness may be
required to finance other authorized activities.
This provision does not obligate the City to incur debt. The City will issue bonds only upon the determination that
such action is in the best interest of the City. The City may also finance the activities to be undertaken pursuant to
the Tax Increment Financing Plan through loans from funds of the City or to reimburse the Developer on a "pay-as-
you-go" basis for eligible activities paid for by the Developer.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-5
The estimated sources of funds for the Park Center TIF District are contained in the table below.
Sources Total
Bond proceeds
$1,500,000
Tax increment received 1 5,000,000
Interest on invested funds 50,000
Other 450,000
TOTAL $,000,000
(AS MODIFIED - SEPTEMBER 21, 1999)
It is not anticipated that the second phase of the assisted living housing development will increase the estimated
total of sources of funds. However, the principal amount of bonded indebtedness authorized to be paid with tax
increments for the district is increased to 53,000,000, which bonds may be issued for other housing projects
within the Redevelopment Project.
Subsection 2-12. Duration of the Park Center Boulevard Housing Tax Increment Financing District
Pursuant to Minnesota Statutes, Section 479.175, Subdivision 1, and Section 469.176, Subd. 1, the duration of the Park
Center TIF District must be indicated within the Plan. Pursuant to Minnesota Statutes, Section 469.176, subdivision
1(b), the duration of the Park Center TIF District will be 25 years from the date of receipt of the first increment by
the City. The date of receipt by the City of St. Louis Park of the first tax increment will be approximately July, 1998.
Thus, it is estimated that the Park Center TIF District, including any modifications of the Plan for subsequent phases
or other changes, would terminate after 2022, or when the Plan is satisfied. The City does reserve the right to decertify
the Park Center TIF District prior to the legally required date.
(AS MODIFIED - SEPTEMBER 21, 1999)
Due to Office of the State Auditor clarifications on tax increment district durations, the final year of receipt of
tax increment is extended until 2023.
Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes construction which would have occurred without the
creation of the Park Center TIF District. If the construction is a result of tax increment financing, the impact is $0
to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact
that the construction would not have occurred without the assistance of the City, the following estimated impact of
the Park Center TIF District would be as follows if the "but for" test was not met:
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-6
IMPACT ON TAX BASE
TAXING
JURISDICTION
ENTITY'S
PROPOSED 1995/96
TOTAL NET TAX
CAPACITY
CAPTURED TAX
CAPACITY
(CTC)
PERCENT OF
CTC TO ENTITY
TOTAL
Hennepin County
1,006,485,910
91,800
0.01%
ISD No. 283
39,290,053
91,800
0.23%
City of St Louis Park
42,471,236
91,800
0.22%
Other
N/A
91,800
N/A
IMPACT ON TAX RATES
ENTITY
1995/96
TAX RATE
PERCENT k
OF TOTAL '
CTC
POTENTIAL
TAXES
Hennepin County
.37270
26.60%
91,800
34,214
ISD No. 283
.74317
53.04%
91,800
68,223
City of St Louis Park
.20095
14.34%
91,800
18,447
Other
.08433
6.02%
91,800
7,741_
TOTAL
1.40115
100.00%
128,626
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used
for calculations is the 1995/Pay 1996 rate. The total net capacity for the entities listed above are based on Pay 1996
figures. The Park Center TIF District will be certified under the 1996/Pay 1997 rates which are unavailable at this
time.
(AS MODIFIED - SEPTEMBER 21, 1999)
As shown in Appendix C, the total taxes generated from Phases I and II of the assisted living housing
development will be less than the taxes anticipated from Phase I alone, at the time the TIF district was created,
due to lower class rates for this type of property. Therefore, the Authority believes that there is no additional
fiscal impacts created by modification of the TIF District.
Subsection 2-14. Modifications to the Park Center Boulevard Housing Tax Increment Financing District
In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the
geographic area of the project or tax increment financing district; increase in amount of bonded indebtedness to be
incurred, including a determination to capitalize interest on debt if that determination was not a part of the original
plan, or to increase or decrease the amount of interest on the debt to be capitalized; increase in the portion of the
captured tax capacity to be retained by the City; increase in total estimated tax increment expenditures; or designation
of additional property to be acquired by the City shall be approved upon the notice and after the discussion, public
hearing and findings required for approval of the original plan. The geographic area of a tax increment financing
district may be reduced, but shall not be enlarged after five years following the date of certification of the original tax
capacity by the county auditor. The City must notify the County Auditor of any modification that reduces or enlarges
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-7
the geographic area of the District or Project Area. Modifications to the Park Center TIF District in the form of a
budget modification or an expansion of the boundaries will be recorded in the Plan.
(AS MODIFIED - SEPTEMBER 21, 1999)
The duration, geographic boundaries, and amount of bonded indebtedness were modified by the City on this
date.
Subsection 2-15. Administrative Expenses
In accordance with Minnesota Statutes, Section 469.174, Subdivision 14, and Minnesota Statutes, Section 469.176,
Subdivision 3 administrative expenses means all expenditures of an authority other than amounts paid for the purchase
of land or amounts paid to contractors or others providing materials and services, including architectural and
engineering services, directly connected with the physical development of the real property in the district, relocation
benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay
interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses
also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic
development consultants. No tax increment shall be used to pay any administrative expenses for the tax increment
financing district which exceed ten percent of the total tax increment expenditures authorized by the tax increment
financing plan or the total tax increment expenditures for the project, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4h, tax increments may be used to pay for the county's
actual administrative expenses incurred in connection with the Park Center TIF District. The county may require
payment of those expenses by February 15 of the year following the year the expenses were incurred.
Pursuant to Minnesota Statutes, Section 469. 177, Subdivision 11, the county treasurer shall deduct an amount equal
to 0.1 percent of any increment distributed to an authority or municipality and the county treasurer shall pay the
amount deducted to the state treasurer for deposit in the state general fund.
Subsection 2-16. Limitation of Increment
Pursuant to Section 469.176, Subd. 1, of the Tax Increment Financing Act, no tax increment shall be paid to the City
for the Tax Increment Financing District after three (3) years from the date of certification of the Original Net Tax
Capacity value of the taxable property in the Tax Increment Financing District by the County Auditor unless within
the three (3) years period:
(a) bonds have been issued pursuant to Section 469.178, or in aid of a
project pursuant to any other law, except revenue bonds issued pursuant
to Section 469.152 to 469.165, or
(b) the City has acquired property within the Tax Increment Financing
District, or
(c) the City has constructed or caused to be constructed public
improvements within the Tax Increment Financing District.
The bonds must be issued, or the City must acquire property or construct or cause public improvements to be
constructed by approximately October 1999.
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the Tax Increment
Financing District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or
other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or
redemption date.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-8
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 6:
if, after four years from the date of certification of the original tax capacity of the tax increment
financing district pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or
renovation of property or other site preparation, including qualified improvement of a street
adjacent to a parcel but not installation ofutility service including sewer or water systems, has been
commenced on a parcel located within a tax increment financing district by the authority or by the
owner of the parcel in accordance with the tax increment financing plan, no additional tax
increment may be taken from that parcel and the original tax capacity of that parcel shall be
excluded from the original tax capacity of the tax increment financing district. If the authority or
the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other
site preparation on that parcel including improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the authority shall certify to the county auditor
in the annual disclosure report that the activity has commenced. The county auditor shall certify
the tax capacity thereof as most recently certified by the commissioner of revenue and add it to the
original tax capacity of the tax increment financing district. The county auditor must enforce the
provisions of this subdivision... For purposes ofthis subdivision, qualified improvements are limited
to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial
reconstruction or rebuilding of an existing street.
The City or a property owner must improve the parcel within the Park Center TIF District by approximately October
2000.
Subsection 2-17. Use of Tax Increment
The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located
in the Park Center TIF District for the following purposes:
1. to pay the principal of and interest on bonds used to finance a project;
2. to finance, or otherwise pay the capital and administration costs of the Development District
pursuant to the Development District Act;
3. to pay for project costs as identified in the budget;
4. to finance, or otherwise pay for other purposes as provided in Section 469.176, Subd. 4, of the
Tax Increment Act;
5. To pay principal and interest on any loans, advances or other payments made to the City or for
the benefit of Redevelopment Project No. 1 by the Developer;
6. To finance or otherwise pay premiums and other costs for insurance, credit enhancement, or
other security guaranteeing the payment when due of principal and interest on the Tax
Increment Bonds or bonds issued pursuant to the Tax Increment Financing Plan or pursuant to
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165, or
both; and
7. To accumulate or maintain a reserve securing the payment when due of the principal and
interest on the Tax Increment Bonds or bonds issued pursuant to Minnesota Statutes, Chapter
462C and Minnesota Statutes, Sections 469.152 to 469.165, or both.
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes
prohibited by Section 469.176, subd. 4, of the TIF Act.
Tax increments generated in the Park Center Boulevard Housing Tax Increment Financing District will be paid by
Hennepin County to the City of St. Louis Park for the Tax Increment Fund of said District. The City will pay to the
developers annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs
of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-9
increment funds will be used for City administration (10%) and the costs of activities outside the Park Center TIF
District.
Revenue derived from Tax Increments from the Park Center TIF District must be used solely to finance the cost of
housing projects as defined in Minnesota Statutes, Section 469.174, Subdivision 11. The cost of public improvements
directly related to the housing projects and the allocated administrative expenses of the City may be included in the
cost of a housing project.
Subsection 2-18. Notification of Prior Planned Improvements
The City shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice
of Tax Increment Financing District enlargement with a listing of all properties within the Tax Increment Financing
District or area of enlargement for which building permits have been issued during the eighteen (18) months
immediately preceding approval of the tax increment financing plan by the municipality pursuant to Section 469.175,
Subd- 3, of the Tax Increment Financing Act. The County Auditor shall increase the original value of the Tax
Increment Financing District by the value of improvements for which a building permit was issued.
Pursuant to Minnesota Statutes, Section 469.177, Subdivision 4, the City has reviewed the area to be included in the
Park Center TIF District and found no parcel for which building permits have been issued during the 18 months
immediately preceding approval of the Plan by the City. If the building permit had been issued within the 18 month
period preceding approval of the plan by the City, the county auditor shall increase the original tax capacity of the
district by the valuation of the improvements for which the building permit was issued.
Subsection 2-19. Excess Tax Increments
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 2, in any year in which the tax increment exceeds the
amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any
tax levy as provided in Minnesota Statutes, Section 475.6 1, Subdivision 3, the City shall use the excess amount to do
any of the following:
1. prepay the outstanding bonds;
2. discharge the pledge of tax increment therefor;
3. pay into an escrow account dedicated to the payment of such bond; or
4. return the excess to the County Auditor for redistribution to the respective taxing jurisdictions
in proportion to their tax capacity rate as provided in Minnesota Statutes, Section 469.176,
Subd. 2.
In addition, the City may, subject to the limitation set forth herein (in particular Subsection 2.15), choose to modify
the tax increment plan as described in Section II, in order to finance additional public costs of Redevelopment Project
No. 1.
Subsection 2-20. Reauirements for Aereements with the Developer
The City will review any proposal for private development to determine its conformance with the Project Plan and
with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested
for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan,
grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the
City to demonstrate the conformance of the development with city plans and ordinances. The City may also use the
Agreements to address other issues related to the development.
Pursuant to Section 469.176, Subd. 5, of the Tax Increment Financing Act, no more than ten percent (10%), by
acreage, of the property to be acquired in the Tax Increment Financing District as set forth in the tax increment
City of Sl. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-10
financing plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued
pursuant to Section 469.178, of the Tax Increment Financing Act, without the City having, prior to acquisition in
excess of ten percent (10%) of the acreage, concluded an agreement for the development or of the property acquired
and which provides recourse for the City should the development not be completed.
Subsection 2-21. Assessment Agreements
Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the City may enter into an agreement in recordable
form with the developer of property within the tax increment financing district which establishes a minimum market
value of the land and completed improvements for the duration of the Park Center TIF District. The assessment
agreement shall be presented to the assessor who shall review the plans and specifications for the improvements
constructed, review the market value previously assigned to the land upon which the improvements are to be
constructed and, so long as the minimum market value contained in the assessment agreement appear, in thejudgment
of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement.
Subsection 2-22. Administration of the Park Center Boulevard Housing Tax Increment Financing District
N,
Administration of the Park Center TIF District will be handled by the City Manager of the City of St. Louis Park.
Subsection 2-23. Financial Reporting Requirements
Pursuant to Minnesota Statutes, Section 469.175, Subdivisions 5, 6, and 6(a); a city must file an annual disclosure
report for all tax increment financing districts with the State Auditor, the County Board, School Board, and County
Auditor.
Pursuant to Section 469.175, Subd. 5, of the Tax Increment Financing Act, the City must file an annual disclosure
report for the Tax Increment Financing District. The report shall be filed with the County Board, County Auditor,
School Board, and the State Auditor on or before July 1 of each year. The report to be filed by the City shall include
the following information:
1. the amount and source of revenue in the tax increment account;
2. the amount and purpose of expenditures from the account;
3. the amount of any pledge of revenues, including principal and interest, on any outstanding bond
indebtedness;
4. the original net tax capacity of the Tax Increment Financing District;
5. the captured net tax capacity retained by the City;
6. the captured net tax capacity shared with other taxing districts;
7. the tax increment received; and
8. any additional information necessary to demonstrate compliance with the tax increment
financing plan.
Section 469.175, Subd. 5, of the Tax Increment Financing Act also provides that an annual statement showing the tax
increment received an expended in that year, the original value, captured net tax capacity, amount of outstanding
bonded indebtedness, the amount of the district's increment paid to other governmental bodies, the amount paid for
administrative costs, the sum of increments paid, directly or indirectly, for activities and improvements located outside
of the district, and any additional information the City deems necessary shall be published in a newspaper of general
circulation in the City.
Pursuant to Minnesota Statutes, Section 469.175, Subd. 6, of the Tax Increment Financing Act, the City must annually
submit to the State Auditor, on or before July 1, a financial report which shall:
provide for full disclosure of the sources and uses of the public funds in the district;
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-11
2, permit comparison and reconciliation with the City's accounts and financial reports;
3. permit auditing of the funds expended on behalf of the tax increment district or that is funded
in part or whole through the use of a development account funded with tax increment from
other tax increment districts or with public money; and
4. be consistent with generally accepted accounting principles.
The financial report must also include the following:
I. the original net tax capacity of the district;
2. the captured net tax capacity of the district, including the amount of any captured net tax
capacity shared with other taxing districts;
3. for the reporting period and for the duration of the district, the amount budgeted under the tax
increment financing plan, and the actual amount expended for, at lest, the following categories:
a. acquisition of land and buildings through condemnation or purchase;
b. site improvements or preparation costs;
C. installation of public utilities, parking facilities, streets, roads, sidewalks, or other
similar public improvements;
d. administrative costs, including the all&ated cost of the city;
e. public park facilities, facilities for social, recreational, or conference purposes, or
other similar public improvements; and
4. for properties sold to developers, the total costs of the property to the authority and the price
paid the developers;
5. the amount of increments rebated or paid to developers or property owners for privately
financed improvements or other qualifying costs, other than those reported under clause (3),
that were issued on behalf of private entities for facilities located in the Park Center TIF
District.
Pursuant to Minnesota Statutes, Section 469.175, subdivision 6a, the City must also annually report to the State
Auditor before or on July 1 of each year the following amounts for the entire City:
I. the total principal amount of nondefeased bonds that are outstanding at the end of the previous
calendar year; and
2. the total annual amount of principal and interest payments that are due for the current calendar
year on (I) general obligation tax increment financing bonds and (ii) other tax increment
financing bonds.
and for each tax increment financing district within the City:
I. the type of tax increment financing district;
2. date on which the district is required to be decertified;
3. amount of any payments and the value of in-kind benefits, such as physical improvements and
the used of building space, that are financed with revenues derived from increments and are
provided to another governmental unit (other than the municipality) during the preceding
calendar year;
4. the tax increment revenues for taxes payable in the current calendar year;
5. whether the tax increment financing plan or other governing document permits increment
revenues to be expended outside of the tax increment financing district;
6. any additional information that the State Auditor may require.
Copies of this report must also be provided to the county and school district boards.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-12
Subsection 2-24. Municipal Approval and Public Purpose
The reasons and facts supporting the finds for the adoption of the Tax Increment Financing Plan for the Park Center
TIF District as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows:
1. Finding that the Park Center TIF District is a housing district as defined in Minnesota Statutes, Section
469.174, Subdivision 11.
The Park Center TIF District consists of portions of 1 parcel.
The units will meet one of the following requirements:
■ At least 20% of the units will be occupied by persons with incomes at 50% or less of median
gross income ($19,100 for 1 person in 1996);
■ At least 40% of the units will be occupied by persons with incomes at 60% or less of median
gross income, ($22,920 for I person in 1996); or
■ At least 50% of the units will be occupied by persons with incomes at 80% or less of median
gross income ($29,100 for I person in 1996).
(AS MODIFIED - SEPTEMBER 21, 1999)
At least 20% of the units will be occupied by persons with incomes at 50% or less of
median gross income ($22,250 for 1 person in 1999);
At least 40% of the units will be occupied by persons with incomes at 60% or less of
median gross income, ($26,700 for 1 person in 1999); or
At least 50% of the units will be occupied by persons with incomes at 80% or less of
median gross income ($33,450 for I person in 1999).
2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private
investment within the reasonably foreseeable future and that the increased market value of the site that could
reasonably be expected to occur without the use of tax increment financing would be less than the increase
in the market value estimated to result from the proposed development after subtracting the present value of
the projected tax increments for the maximum duration of the District permitted by the tax increment plan.
Due to the high cost of development on the proposed parcels, the restraints in providing affordable housing
and the cost of financing the proposed improvements, this project is feasible only through assistance, in part,
from tax increment financing.
A comparative analysis of estimated market values both with and without establishment of the Park Center
Boulevard Housing Tax Increment Financing District and the use of tax increments has been performed as
described above. Such analysis is contained in Appendix C of the Tax Increment Financing Plan for the Park
Center Boulevard Housing Tax Increment Financing District and indicates that the increase in estimated
market value of the proposed development (less the indicated subtractions) exceeds the estimated market
value of the site absent the establishment of the Park Center Boulevard Housing Tax Increment Financing
District and the use of tax increments (See Appendix C).
3. Finding that the Tax Increment Financing Plan for the Park Center TIF District conforms to the general plan
for the development or redevelopment of the municipality as a whole.
The proposed Tax Increment Financing Plan was reviewed by the Planning Commission on September 18,
1996. The Planning Commission found that the Tax Increment Financing Plan conforms to the general
development plan of the City.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-13
4. Finding that the Tax Increment Financing Plan for the Park Center TIF District will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment
Project No. I by private enterprise.
The establishment of the Park Center TIF District will increase the tax base of the City and State, and will
result in increased housing opportunities for seniors community.
Additional findings are set forth in the Authorizing Resolution of the City.
Subsection 2-25. Fiscal Disparities Election
It is not expected that commercial/industrial property will be built in the Park Center TIF District. However, pursuant
to Minnesota Statutes, Section 469.177, Subdivision 3, the governing body may elect one of two methods to calculate
fiscal disparities. It the calculations pursuant to Minnesota Statutes, Section 469.177, subdivision 3, clause a, are
followed the following method of computation shall apply:
(I) The'original tax capacity and the current tax capacity shall be detBrmined before the application ofthe fiscal
disparityprovisions of Chapter 473E Where the original tax capacity is equal to or greater than the current
tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax
capacity is less than the current tar capacity, the difference between the original tax capacity and the current
tax capacity is the captured tax capacity. This amount less any portion thereof which the authority has
designated, in its tar increment financing plan, to share with the local taring districts is the retained captured
tax capacity of the authority.
(2) The county auditor shall exclude the retained captured tax capacity of the authority from the taxable value
of the local taxing districts in determining local taxing district tax capacity rates. The tax capacity rates so
determined are to be extended against the retained captured tax capacity of the authority as well as the
taxable value of the local taxing districts. The tax generated by the extension of the lesser of (A) the local
taxing district tax capacity rates or (B) the original tax capacity rate to the retained captured tax capacity
of the authority is the tax increment of the authority.
If the calculations pursuant to Minnesota Statutes, Section 469.177, subdivision 3, clause b, are followed, the
following method of computation shall apply:
(1) The original tax capacity shall be determined before the application of the fiscal disparity
provisions of chapter 473E The current tax capacity shall exclude any fiscal disparity
commercial -industrial tax capacity increase between the original year and the current year
multiplied by the fiscal disparity ratio determined pursuant to section 473E 08, subdivision 6.
Where the original tax capacity is equal to or greater than the current tax capacity, there is no
captured tax capacity and no tax increment determination. Where the original tax capacity is
less than the current tax capacity, the difference between the original tax capacity and the
current tax capacity is the captured tax capacity. This amount less any portion thereof which
the authority has designated, in its tax increment financing plan, to share with the local taxing
districts is the retained captured tax capacity of the authority.
(2) The county auditor shall exclude the retained captured tax capacity of the authorityfrom the
taxable value ofthe local taxing districts in determining local taxing district tax capacity rates.
The tax capacity rates so determined are to be extended against the retained captured tax
capacity of the authority as well as the taxable value of the local taxing districts. The tax
generated by the extension of the less of (A) the local taxing district tax capacity rates or (B)
the original tax capacity rate to the retained captured tax capacity of the authority is the tax
increment of the authority.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-14
The Authority shall submit to the County Auditor at the time of the request for certification which method of
computation of fiscal disparities the authority elected. The City of St. Louis Park will choose to calculate fiscal
disparities by clause a.
According to Minnesota Statutes, Section 469.177, Subdivision 3:
(c) The method ofcomputation oftax increment applied to a district pursuant to paragraph
(a) or (b) shall remain the same for the duration of the district, except that the governing
body may elect to change its election from the method of computation in paragraph (a)
to the method in paragraph (b).
Subsection 2-26. Other Limitations on the Use of Tax Increment
1. General Limitations. All revenue derived from tax increment shall be used in accordance with the tax
increment financing plan. The revenues shall be used to finance or otherwise pay public capital and
administration costs pursuant to Minnesota Statues, Section 469.124 through 469.134. These revenues shall
not 'be used to circumvent existing levy limit law. No revenues deoved from tax increment shall be used for
the construction, renovation, operation or maintenance of a building to be used primarily and regularly for
conducting the business of a municipality, county, school district, or any other local unit of government or
the state or federal government; this provision shall not prohibit the use of revenues derived from tax
increments for the construction or renovation of a parking structure, a commons area used as a public park
or a facility used for social, recreational or conference purposes and not primarily for conducting the business
of the municipality.
2. Five Year Limitation on Commitment of Tax Increments. Tax Increments derived from the Park Center TIF
District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five
year rule set forth in Minnesota Statutes, Section 469.1763, subdivision 3, has been satisfied; and beginning
with the sixth year following certification of the Park Center TIF District, 75 percent of said tax increments
that remain after expenditures permitted under said five year rule must be used only to pay previously
commitment expenditures or credit enhanced bonds as more fully set forth in Minnesota Statutes, Section
469.1763. subdivision 4.
Subsection 2-27. State Tax Increment Financing Aid
Pursuant to Minnesota Statutes, Section 273.1399, for tax increment financing districts for which certification was
requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA)
applied to the municipality's Local Government Aids (LGA) first and, Homestead and Agricultural Aid (HACA)
second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of the
tax increment financing district.
Pursuant to Minnesota Statutes, Section 273.1399, Subdivision 6, the City may choose an option to the LGA-HACA
penalty. A tax increment financing district is exempt from the LGA-HACA reduction if the City elects to make a
qualifying local contribution at the time of approving the tax increment financing plan. To qualify for the exemption
in each year, the City must make a qualifying local contribution to the project of a certain percentage. The local
contribution for a housing district is 10.0 percent. The maximum local contribution for all districts in the City is
limited to two percent of the City's net tax capacity.
The amount of the local contribution must be made out of unrestricted money of the authority or municipality, such
as the general fund, a property tax levy, or a federal or a state grand -in -aid which may be spent for general government
purposes. The local contribution may not be made, directly or indirectly, with tax increments or developer payments.
The local contribution must be used to pay project costs and cannot be used for general government purposes.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2-15
The City elects to make the 10% annual local contribution to the project to exempt itself from the LGA-HACA
penalty.
Subsection 2-28. Use of Tax Increment from Housing Districts
Revenue derived from Tax Increments from the Park Center TIF District must be used solely to finance the cost of
housing projects as defined in Minnesota Statutes, Section 469.174, Subdivision 11. The cost of public improvements
directly related to the housing projects and the allocated administrative expenses of the City may be included in the
cost of a housing project.
Subsection 2-29. Countv Road Costs
Pursuant to Minnesota Statutes, Section 469.175, Subdivision la, the county board may require the authority to pay
for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment
will in the judgement of the county, substantially increase the use of county roads requiring construction of road
improvements or other road costs and if the road improvements are not scheduled within the next five years under a
capital improvement plan or other county plan.
The improvements outlined in the Plan serve as notice to the county that the development of the residential facilities
will be assisted with tax increment. In the opinion of the Authority and consultants, the proposed development will
have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must
notify the Authority within thirty days of receipt of this plan.
Subsection 2-30. Wage and Job Goals
The City is not providing tax increment financing for the purpose of economic development or job growth and
therefore, the provisions of Minnesota Statutes, Sections 116J.991 are not applicable and the City is not establishing
wage and job goals in connection with the Park Center TIF District. As modified, pursuant to Minnesota Statutes,
Sections 116J.993 to 116J.995, business subsidies are not expected to apply to the Park Center Tax Increment
Financing District because assistance for housing purposes.
Subsection 2-31. Summary
The City of St. Louis Park is establishing the Park Center Boulevard Housing Tax Increment Financing District to
preserve and enhance the tax base, redevelop substandard areas, and increase employment of the City. The Tax
Increment Financing Plan for the Park Center Boulevard Housing Tax Increment Financing District was prepared by
Ehlers and Associates, Inc.,3060 Centre Pointe Drive, Minnesota 55113, telephone (651) 697-8500.
City of St. Louis Park Modification to the TIF Plan for the Park Center Boulevard Housing TIF District 2.16
APPENDIX A
BOUNDARY MAPS OF REDEVELOPMENT PROJECT NO. I AND
THE MODIFIED PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT
N
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APPENDIX B
LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN
THE PARK CENTER BOULEVARD HOUSING TAX INCREMENT FINANCING DISTRICT
The south 40.00 feet of Lot 1, Block 2, PARK CENTER, according to the recorded plat thereof, Hennepin County,
Minnesota, and the north 145.00 feet of the south 185.00 feet of the east 215.00 feet of said Lot 1.
(AS MODIFIED - SEPTEMBER 21, 1999)
The Park Center TIF District will consist of one parcel of property known under a replatted name of Silvercrest
Addition, Block 1, Lot 2. The proposed district expansion consists of one full parcel in the existing district (06-
028-24-33-0017) plus portionsoftwo additionalparcels(06=028-24-33-0013 and 06-028-24-33-0004). See the map
in Appendix A for further information.
APPENDIX B -I
APPENDIX C
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