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HomeMy WebLinkAbout7. Modification to the Development Program for Development District No.1 and the Modification to the Tax Increment Fianancing Plan for Downtown TIF District No. 1A 4' CITY OF ROSEMOUNT EXECUTIVE SUN04ARY FOR ACTION CITY COUNCIL MEETING DATE: August l5, 2000 AGENDA ITEM: Modifications to Development Program for AGENDA SECTION: Development District No. 1 and to the Tax Public Hearings Increment Financing Plan for Downtown TIF District No. 1 PREPARED BY: Jim Parsons AGEND ', '--, Community Development Director 7. 1 ATTACHMENTS: Proposed Modifications; Resolution APPROVED B , u Background Downtown Tax Increment Financing (TIF) District No. 1 is scheduled to expire next year. Prior to that time, it is important for the City to review the district's activities and make any necessary adjustments. The following proposed modifications to the budget more nearly approximate actual and projected amounts than does the current budget: A. Add $3,030,893 in tax increment revenue for a new total tax increment revenue of $4,650,000. B. Add $370,000 in real estate sales. _ C. Subtract $1,380,893 in rent/lease revenue. D. Add $3,476,327 in land/building acquisition costs for a new total land/building acquisition cost of $5,000,000. This amount approximates the cost of all previous acquisitions throughout the life of the district, as well as planned acquisitions such as that of the Quonset hut. E. Add $987,593 to the cost of streets and sidewalks. This is the amount of tax increment funds likely to be spent on the Highway 3 project before the expiration of the doamtown tax increment district. F. Subtract $2,565,000 from bond principal payments. G. Subtract $1,002,238 from bond interest payments. H. Add $857,000 for administrative costs. I. Add $543,700 for legal/bond costs. I of 2 k The other proposed modification is to add a list of property identification numbers to the plan. The properties listed are both those understood by staff to have been acquired with tax increment funds from the district over its 25 -year life, and those believed by staff to be acquisitions planned or possible before the district expires next year. The Community Center, Loch - Blake, and Rosemount Plaza properties were all acquired in whole or in part with tax increment funds. The Quonset but acquisition is planned for October. The other possible acquisitions were identified by staff for inclusion due to the possibility, though still preliminary, of re- development in the downtown district. RECOMMENDED ACTION: Motion to approve resolution adopting the modification to the development program for Development District No. 1; and adopting the modification to the tax increment financing plan for the Downtown Tax Increment Financing District No. 1. CITY COUNCIL ACTION: 2 of 2 ` Draft as of August 3, 2000 For fiscal implication correspondence MODIFICATION TO THE DEVELOPMENT PROGRAM for DEVELOPMENT DISTRICT NO.1 and the MODIFICATION TO THE TAX INCREMENT FINANCING PLAN for the THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO.1 (a pre =1979 district) ROSEMOUNT PORT AUTHORITY CITY OF ROSEMOUNT DAKOTA COUNTY STATE OF MINNESOTA Public Hearing: August '15, 2000 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113 -1105 E H L E R S (651) 697 -8500 fax (651) 697 -8555 www.ehiers- inc.com i ASSOCIATES INC TABLE OF CONTENTS (for reference purposes only) SECTION I MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. I AND THE TAX INCREMENT FINANCING PLANFOR THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO.1 ................. 1 -1 Introduction .......... ... .... ............................... .1 -1 Project Proposals ... ..... ........... .. .. ...... ........ .... 1 -1 Uses of Funds ............ ........... ... ..... 6 .................. 1 -2 APPENDIX A BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. 1 AND THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT .................. A -1 SECTIONI MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. I AND THE TAX INCREMENT FINANCING PLAN FOR THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO.] Introduction The following text represents a Modification to the Development Program for Development District No. I and the Modification to the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. 1, a pre- 1979 district. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. I and the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. 1(the "Downtown District No. I"). Generally, the substantive changes include the authority to spend additional tax increments generated from the Downtown Tax Increment Financing District No. I by modifying the budget to facilitate the purchase of land and the installation of public utilities and improvements within the City of Rosemount. Acknowledging that this is a pre -1979 district, it is intended that the Downtown Tax Increment Financing District No. I will remain a pre -1979 district, pursuant to 469.179, as the City -is not electing to be governed by the Tax Increment Financing Act. For further information, a review of the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. 1, adopted May 1, 1979, is recommended. It is available from the Community Development Director's office of the City of Rosemount. Other relevant information is contained in the Development Program for Development District No. 1. Project Proposals (As Adopted May 1,1979) 1. Land Acquisition a. Properly Acquisition Map ` No additional property has been identified for acquisition or conditional acquisition at this time. b. List of Property to be Acquired No additional property has been identified for acquisition c. Conditions Under Which Properties Not Designated to be Acquired May be Acquired The Housing and Redevelopment Authority may identify property for acquisition and may specify conditions for the acquisition or exclusion from acquisition of identified property in modifications to this Redevelopment Plan. Such modifications will be adopted in accordance with Section G. of this Redevelopment Plan. The Housing and Redevelopment Authority may also acquire property by direct purchase from willing sellers to achieve the objectives of this Redevelopment Plan. Such acquisition will be undertaken only when there exists sufficient funding to finance the acquisition and related costs. (As Modified December 2, 199 7) The City hereby modifies the Plan to identify the following parcel number for acquisition: 34 -64800 - 100-03 (As MoXfredAugust IS, 2000) City of Rosemount Modirication to Development District No. i and the Downtown Tax Increment Financing District No. 1 1 -1 The Port Authority hereby modifies the Plan to identify the following parcel number(s) for acquisition: 34-03800 -010-15 34- 64800 - 140 -03 34- 64800 - 130 -03 34- 64800- 100-03 34- 64800 - 091 -03 34- 64800-090 -03 34-02010- 043 -60 34- 02010- 031-60 34- 02010 - 013-55 34-02010- 012 -55 34-02010- 022 -60 34- 70900-010 -01 34- 70900 - 020 -00 34- 70900-010 -02 34- 70900-010 -00 34- 64650-013 -01 34- 64650 -014-01 34- 64650 - 020-01 34- 64651- 020 -01 34- 64651 -010 -01 34- 64650-012 -01 34- 64651 - 203-02 34- 64800-011 -05 34- 64800-012 -05 34- 64800- 020-05 34- 64800-030 -05 34- 64800- 050 -05 34- 64800 - 082-05 Uses of Funds Estimated costs associated with the Downtown Tax Increment Financing District No. 1 are subject to change. The cost of all activities to be considered for tax increment financing is estimated to be $796,043. (As Modified December 2, 1997) The estimate of costs is modified to add $400,000 for land acquisition, landscaping/lighting, sidewalks/curbs and gutter, and utility line burial for a new total of $13,119,918. " (As Modified September 7, 1999) The estimate of costs is modified to add $400,000 for land acquisition, landscaping/lighting, sidewalks/curbs and gutter, and utility line burial for a new total of $13,519,918. City of Rosemount Modification to Development District No. I ad the Downtown Tax Increment Financing District No. 1 1 -2 (As Modified August IS, 2000) The estimated tax increment revenue generated by the Rosemount TIF District No. I is being increased by $1,380,893 due to additional construction. Item Previous Budget Mod. of Dec. 2. 1997 Mod. of Sept. 7. 1999 Mod. of Aug. 15, 2000 As Modified New Totals Sources of Funds Tax increment revenue $1,619,107 $3,030,893 $4,650,000 Bond Proceeds $4,765,000 $4,765,000 Real estate sales $102,300 $370,000 $472,300 Rent/lease revenue $7,950,000 ($1,380,893) $5,930,000 Total Sources of Funds $14.436.407 SW80,893 $15,817.300 Uses of Funds Land/Building acquisition $1,323,673 $100,000 $100,000 $3,476,327 $5,000,000 Site improvements /preparation costs $27,275 $0 $0 $27,275 Installation of public utilities $5,000 $100,000 $100,000 $205,000 Parking facilities $10,000 $0 $0 _ $10,000 Streets and sidewalks $0 $100,000 $100,000 $987,593 $1,187,593 Social, recreational, conference facilities or similar public improvements (landscaping/lighting) $3,868,200 $100,000 $100,000 $4,068,200 Bond principal payments $4,765,000 $0 $0 ($2,565,000) $2,200,000 Bond interest payments $2,371,470 $0 $0. ($1,002,238) $1,369,232 Administrative costs $143,000 $0 1 $0 $857,000 $1,000,000 Legal/bond costs $206,300 $0 $0 - 5543,700 $750,000 Total Uses of Funds $12.719.918 2a 400 000 52.297382 $15,817,300 City of Rosemount Modification to Development District No. l and the Downtown Tax Increment Financing District No. 1 1 -3 (As ModifredAugust 15, 2000) The impact on other taxing jurisdictions assumes that the redevelopment contemplated by the Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The actual fiscal impact of the District using the current captured tax capacity is as. follows. if the "but for" test was not met: IMPACT ON TAX CAPACITY Current Captured 1999/2000 Proposed Tax Capacity (CTC) Percent of CTC Taxing Jurisdiction Tax Capacity Upon Project Completion to Entity Total Dakota County $267,414,140 233,383 0.087 % ISD No. 196 100,355,510 233,383 0.233 % City of Rosemount 10.588.514 233,383 2.204% E"ACT ON TAX RATES 1999/2000 Percentage Tax Capacity Rates of Total CTC Taxes Dakota County 0.27247 21.5787% 233,383 63,590 ISD No. 196 0.53231 42.1572% 233,383 124,232 City of Rosemount 0.39335 31.1520% 233,383 91,801 Other 0.06455 5.1121% 233,383 15.065 Total 1.26268 100% 294,688 The values listed above display the actual captured tax capacity for payable 2000 The tax rate used for calculations is the 1999/Pay 2000 rate. The total net capacity for the entities listed above are based on Pay 2000 figures. City of Rosemount Modification to Development District No. 1 and die Downtown Tax Increment Financing District No. 1 1-4 APPENDIX A BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. 1 AND THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO. I City of Rosemount Modification to Development District No. I and the Downtown Tax Increment Financing District No. 1 1 -5 A CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2000- A RESOLUTION ADOPTING THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1; AND ADOPTING THE MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO.1. BE IT RESOLVED by the City Council (the "Council") of the City of Rosemount, Minnesota (the "City "), as follows: Section 1. Recitals 1.01. The Housing and Redevelopment Authority of the City has heretofore established Development District No. 1 and adopted the Development Program therefor and has established the Downtown Tax Increment Financing District No. 1 (a pre -1979 district) and adopted the Tax Increment Financing Plan therefor and has transferred the Project to the Port Authority of the City. It has been proposed that the City adopt the Modification to the Development Program for Development District No. 1 and adopt the Modification to the Tax Increment Financing Plan (collectively, the "Modifications ") for the Downtown Tax Increment Financing District No. 1 ( "Downtown TIF District No. 1 "); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047, Section 469.0813, and Sections 469.174 to 469.179, all inclusive, as amended, all as reflected in the Modifications, and presented for the Council's consideration. Generally, the substantive changes include the authority to spend additional tax increments generated from the Downtown Tax Increment Financing District No. 1 by modifying the budget and identifying parcels for acquisition to facilitate the purchase of land and the installation of public utilities and improvements within the City of Rosemount. 1.02. The Council has investigated the facts relating to the Modifications. 1.03. The City and the Port Authority have performed all actions required by law to be performed prior to the adoption and approval of the proposed Modifications, including, but not limited to, notification of Dakota County and School District No. 196 having taxing jurisdiction over the property to be included in the Downtown TIF District No. 1, a review of and written comment on the Modifications by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. Section 2. Findings for the Approval of the Modifications 2.01. The Council is not modifying the boundaries of the Downtown Tax Increment Financing District No. 1, but is only modifying the Tax Increment Financing Plan to clarify the budget and to modify the budget to allow for the spending of additional tax increments to acquire land. RESOLUTION 2000 - 2.02. The Council hereby reaffirms the previous findings made with respect to the Downtown Tax Increment Financing District No. 1 and its previous actions made with respect to the budget for the Downtown Tax Increment Financing District No. 1. 2.03. The Council reaffirms that this is a pre -1979 district, and that the Council intends that the Downtown Tax Increment Financing District No. 1 will remain a pre -1979 district, pursuant to 469.179, as the City is not electing for the Downtown Tax Increment Financing District No. 1 to be governed by the Tax Increment Financing Act. 2.04. The Council further finds that the proposed development would not occur .solely through private investment within the reasonably foreseeable future and, that the increased market value on 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 Downtown Tax Increment Financing District No. 1 permitted by the Tax Increment Financing Plan; that the Modifications conform to the general plan for the development or redevelopment of the City as a whole; and that the Modifications will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the Downtown Tax Increment Financing District No. 1 by private enterprise. Section 3. Public Purpose 3.01. The Council hereby finds that the Modifications, are intended and, in the judgement of this Council, the effect of such actions will be, to provide an impetus for development in the public purpose and accomplish certain objectives as specified in the Modifications, which are hereby incorporated herein. Section 4. Approval of the Modifications: Filing 4.01. The Modification to the Development Program for Development District No. 1 and the Modification to the Development Program for Downtown Tax Increment Financing District No. l are hereby approved, and shall be placed on file in the office of the Community Development Director. Approval of the Modifications does not constitute approval of any project or a Development Agreement with any developer. 4.02 The staff of the City is authorized to file the Modifications with the State Department of Revenue and the Dakota County Auditor. 4.03 The staff of the City, the City'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 Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 2 RESOLUTION 2000 ADOPTED this 15th day of August, 2000, by the Rosemount City Council. Cathy Busho, Mayor ATTEST: Linda J. Jentink, City Clerk CERTIFICATION I hereby certify that the foregoing is a true and correct copy of a resolution presented to and adopted by the City Council of Rosemount at a duly authorized meeting thereof, held on the 15th day of August, 2000, as disclosed by the records of said City in my possession. (SEAL) Linda J. Jentink, Rosemount City Clerk Motion by: Seconded by: Voted in favor: Voted against: Member absent: 3 r Subscri d arid sworn to before me on this day of , 2000. (�� - ) Notary u is AFFIDAVIT DAWN M SMITH NO OT A COrtlmission Expires Jan.31, 2005 I E I It NOTICE OF PUBLIC HEARING The Rosemount Town Pages CITY OF ROSEMOUNT COUNTY OFD"OTA STATE OF MINNESOTA AFFIDAVIT OF PUBLICATION NOTICE IS HEREBY GIVEN t6af the City Council of the City of, Rosemount, County of Dakota, State of Minnesota, will hold a public hearing on Tuesday, August Chad Richardson, being duly sworn, on oath says that he is an authorized 15. 20W. � pm a t the Rosemount agent and employee of the publisher of the newspaper, known as The ,�,� 14x` Street west, Rosemount. Minnesot rel to the Rosemount Town Pages, and has full knowledge of the facts which are odificadon to the „el Program for ty ne�a,e„M No. I stated below: said the Modification to the Tax Increment Financing Plat "Modifications') (collectively, the for the Downtown Tax (A) The newspaper has complied with all of the requirements constituting Increm District No. I ( a� dwtH b qualification as a legal newspaper, as provided by Minnesota Statutes within l) purs Minnesota statut sections 469.001 through 469.047, 331A.02 331A.07 d a pp lie bl ws as men d. r d sections .74 to 469.119, as Section 469.0813; an 469 inclusive, as amended e Modi a are can (B) The printed _ J n � Q `(� � Cx�t � '° r �Modifications f a file and available for btic � on t he e ffi of the public u City Clerk at City Hall. / The_ boundaries of the Downtown Tax locranem Financing District No. l we not being modified Generally, the substantive changes include the authority to sped which is attached, was cut from the columns of said newspaper, and was additi ea] tax increments generated from the Downtown Tax In Financing District No 1 by modif the printed and published once each week for— successive budget and idenfytrrg parcels for acquisi to facilitrae the purchase of land and the insudlaricn pf public utilities ks; 't first on Friday, the _ ...... — day of ikvelc>etta`Dis�tria the City w was published o and Dowitown 2000 and was thereafter printed and published on every Increment Financing District No. I therein, is am fomh Friday, t d including Friday, the_._. - -- -- - -- day of below. Subject to certain limitations, tax inaenKat from Downtown Tax Increment Finmtcing District No. I may be 2000; and printed below is a copy of the ` A °" eligible "sus within the boundaries of lower case alphabet from to Z, both inclusive, which is hereby D�evel °n1itDi5°"`Na 1.: ; at acknowledged as being the size and kind of'type used in the composition All interested persons ma appear the hearing and pr eunt their views orall or prior tothe mectin in wrift and publication of the notice: Dated this 25 day of July, 2000. ` s[Unda J. Jentink, City Clerk City of Rosemount, Dakota County, Minnesota AudkM aids and {ervices are available - Please contact alx:edfghijkbnnoryrstuvwxyz the City Clerk at 611- 522'-V03 or 651-'3, CMD nronber) no later dan Augurt k '20t* to'niake a regrre t. Examples ofauxiliary aids orservfcer 'may includc sign language interpreter, assistive keening kit, accessible B mating location, etc­ . . 7Q8 Subscri d arid sworn to before me on this day of , 2000. (�� - ) Notary u is AFFIDAVIT DAWN M SMITH NO OT A COrtlmission Expires Jan.31, 2005 I E I It h' t ya, ,., , ".,...... — r — AFFIDAVIT OF POSTED NOTICE of a Public Hearing for Modification to Development Program for Development District No. 1 and to the Tax Increment Financing Plan for Downtown TIF District No. 1. CITY HALL 2875 — 145th Street West Rosemount, MN 55068 -4997 Phone: 651 -423 -4411 Hearing Impaired 651 - 423 -6219 Fax: 651- 423 -5203 STATE OF MINNESOTA) COUNTY OF DAKOTA) § CITY OF ROSEMOUNT ) I, Linda J. Jentink, being first duly sworn, deposes and says: I am a United States citizen and the duly qualified City Clerk of the City of Rosemount, Minnesota. On July 25', 2000, I posted at Rosemount City Hall, 2875 145th Street West, a copy of the attached Notice of Public Hearing for Modification to Development Program for Development District No. 1 and to the Tax Increment Financing Plan for Downtown TIF District No. 1. Dated this 25th day of July, 2000. Linda J. Jentink i erk City of Rosemount Dakota County, Minnesota rrry nG RncF-nnnl INIT w I r .. CITY OF ROSEMOUNT Everything's Coming Up Rosemount!! CITY HALL 2875 — 145th Street West Rosemount, MN 55068 -4997 Phone: 651 - 423 -4411 Hearing Impaired 651 - 423 -6219 Fax: 651- 423 -5203 NOTICE OF PUBLIC HEARING CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Rosemount, County of Dakota, State of Minnesota, will hold a public hearing on Tuesday, August 15, 2000, at approximately 7:30 p.m. at the Rosemount City Council Chambers in the Rosemount City Hall, 2875145"' Street West, Rosemount, Minnesota, relating to the proposal of the Port Authority to adopt the Modification to the Development Program for Development District No. 1 and the Modification to the Tax Increment Financing Plan (collectively, the "Modifications") for the Downtown Tax Increment Financing District No. 1 (a pre -79 district), located within Development District No. 1, pursuant to Minnesota Statutes, Sections 469.001 through 469.047; Section 469.0813; and Sections 469.174 to 469.179, all inclusive, as amended. Copies of the Modifications are on file and available for public inspection at the office of the City Clerk at City Hall. The boundaries of the Downtown Tax Increment Financing District No. 1 are not being modified. Generally, the substantive changes include the authority to spend additional tax increments generated from the Downtown Tax Increment Financing District No. 1 by modifying the budget and identifying parcels for acquisition to facilitate the purchase of land and the installation of public utilities and improvements within the City of Rosemount. A map of Development District No. 1 and Downtown Tax Increment Financing District No. 1 therein, is set forth below. Subject to certain limitations, tax increment from Downtown Tax Increment Financing District No. 1 may be spent on eligible uses within the boundaries of Development District No. 1. All interested persons may appear at the hearing and present their views orally or prior to the meeting in writing. Dated this 25' day of July, 2000. e Linda J. Jentink, CV1t City of Rosemount, Dakota County, Minnesota Auxiliary aids and services are available - Please contact the City Clerk at 651- 322 -2003 or 651- 322 - 6219 (TDD number) no later than August 8, 2000 to make a request. Examples of auxiliary aids or services may include: sign language interpreter, assistive listening kit, accessible meeting location, etc.