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Home My WebLink About7. Modification to Downtown TIF District � CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: December 2, 1997 AGENDA ITEM: Modification to Downtown TIF District AGENDA SECTION: Public Hearing PREPARED BY: Dan Rogness, Community Development Director AGEN ��f��I ',�` � ATTACHMENTS: Resolution;Proposed Modification as drafted by APPROVED BY: I�I Ehlers and Assoc. Ehlers and Associates has prepared the proposed modification to the Development Program for Development District No. 1 and the TIF Plan for TIF District No. l. Three primary objectives are being achieved by the modification: (1)amend the district's complete Use of Funds to correspond with the most recent report sent to the State Auditor; (2) arnend the district's current Use of Funds to allow additional expenditures for future commercial enhancements; and(3) amend the Use of Funds to allow funds to purchase the house at 14635 Burma Avenue. The amendment anticipates additional tax increments in the year 2000 due to the termination of existing/past debt obligations. However, staff's.estimate of available funds is subject to the reduction of tax class rates for commercial-industrial properties. In other words,the proposed$400,000 increase is a"maximum"amount with a likely lower amount. The county and school district have been notified with no comment submitted to date. The Port Authority will be reviewing this proposed modification on December 2 at 6:00 pm. RECOMMENDED ACTION: MOTION to Adopt A Resolution Adopting the Modification to the Development Program for Development District No. 1; and Modifying within Development District No. 1 the Downtown Tax Increment Financing District No. 1 and Adopting the Related Modification to the Tax Increment Financing Plan Therefor. COUNCIL ACTION: ' CITY OF ROSEMOUNT DAKOTA COUNTY,MINNESOTA RESOLUTION 1997- A RESOLUTION ADOPTING THE MODIFICATION TO THE � DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1; AND MODIFYING WITHIN DEVELOPMENT DISTRICT NO. 1 THE DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO. 1 AND ADOPTING THE RELATED MODIFICATION TO THE TAX INCREMENT FINANCING PLAN THEREFOR BE IT RES4LVED by the City Council(the"Council") of the City of Rosemount, Minnesota(the"City"), as follows: Section 1. Recitals. 1.01. The Port Authority has heretofore established Development District No. 1 and adopted the Development Program therefor and has established the Downtown Tax Increment Financing District No. 1 and adopted the Tax Increment Financing Plan therefor. It has been proposed that the City adopt the Modification to the Development Program for Development District No. 1 and modify within Development District No. 1 the Downtown Tax Increment Financing District No. 1 and adopt the related Modification to the Tax Increment Financing Plan therefor(collectively, the"Modifications"); and 1.02. The Council has investigated the facts relating to the Modifications and has caused to be prepared a Modification to the Development Program for Development District Na 1 and a Modification to the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. 1, all pursuant to and in conformity with the existing law,including Minnesota Statutes, Section 469.001 through 469.047; Section 469.0813; and Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modifications and presented for the Board's consideration; and 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 ta�cing jurisdiction over the property included in the Downtown Tax Increment Financing District No. 1, a review of and written comment on the Modifications by the City Pla.nning Commission, and the holding of a public hearing upon published notice as required by law. Section 2. Findings for the A�roval of the Modifications. 2.01. The Council is not modifying the boundaries of the Downtown Tax Increment Financing District No. l,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 taa�increments to acquire land. , , Resolution 1997- 2.02. The Council hereby reaffirms the previous findings made with respect to the Downtown Tax Increment Financing District Na l 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 Na. 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 couldxeasonably 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. l by private enterprise. Section 3. A�vroval of the Modifications,Filin�. 3.01. The Modifications, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified and adopted and shall be placed an file in the office of the Community Development Director. 3.02. 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 to negotiate, draft,prepare and present to this Council for its consideration all further plans,resolutions, documents and contracts necessary for this purpose. 3.03. The staff of the City are authorized to file the Modifications with the State Department of Revenue and the Dakota County Auditor. , 3.04. The Council hereby concurs in the resolution of the Port Authority approving the ' Modifications. ADOPTED this 2nd day of December, 1997 by the City Council of the City of Rosemount. , ATTEST: Cathy Busho, Mayor Susan M. Walsh, City Clerk Resolution I997- Motion by: Seconded by: Voted in favor: Voted against: Member absent: J • t � Draftas of October 30, 1997 Draft for fiscal implicauons correspondence :7 . � l, . . . ,... �. ` D FICATION 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 redevelopment district) ROSEMOUNT PORT AUTHORITY CITY OF ROSEMOUNT DAKOTA COUNTY STATE OF MINNESOTA Public Hearing: December 2, 1997 Adopted: Prepared by: EHLERS AND ASSOCIATES, INC. � 2950 Norwest Building 90 South Seventh Street Minneapolis, Minnesota 55402-4100 Phone: (612) 339-8291 F�: (612)339-0854 E-mail: info@ehlers-inc.com Web Site: www.ehlers-inc.com ' � . TABLE OF CONTENTS or re erence u oses on! (f f P TP Y) SECTION I-MODI�A� IO �'O THE DEVELOPMENT PROGRAM FOR DEVELOPMENT D/STRICT NO�1�AND THE TAX lNCREMENT FINANClNG PLAN FOR THE DOWNTOWN° -AX/NCREMEIVT FINANC/NG DISTRICT NO.1 . . . . . . . . . . . . . . . . . . . . 1-1 Introduct�'an��. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 1-1 Projec�ro�orsals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1 UsesofFu�s� . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 �,�. . . APPENUIX� -BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO. 1 AND THE`DOWNTOWN TAX INCREMENT FINANCING DISTRICT . . . . . . . . . . . . . . . . . . . . A-1 SECTION I MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 �ND�7'IYE TAX INCREMENT FINANCING PLAN FOR THE�DO� �N TAX INCREMENT FINANCING DISTRICT NO.I �. �r. Introduction �``'`- �� i The following.t�xt repeesents a Modification to the Development Program for Development District No. 1 and � the Modificarion� e Tax Increment Financing Plan for the Downtown Tax Increment Financing District No ��, °��`velo ment district. This modification represents a continuation of the goals and objectives set ��- forth,� De�lopment Program for Development District No. 1 and the Tax Increment Financing Plan for ��-., the�Downt4wn Tax Increment Financing District No. 1 (the "Downtown District No. 1"). Generally, the s , stantive changes include the authority to spend additional tax increments generated from the Downtown °„_in�ement Financing District Na 1 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. 1 will rernain 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 Ta�c 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 DistrictNo. 1. (As Adopted May 1, 1979) Proiect Prouosals 1. Land Acquisition a. Property Acquisition Map No property has been identified for acquisition or conditional acquisition at this time. b. List of Property to be Acquired . No 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. City of Rosemount Modification to Development District No. 1 and the Downtown Tax Increment Fin�ncing District No. t 1-I (As Modified December 2, 1997) The City hereby modifies the Plan to identify the following parcel for acquisition: � ''� Parcel Numbers � rt� `;�.. 34-64800-100-03 :�,>. ,,, �� ' °� (As Adopted May 1, 1979) Uses of Funds :- `$�`�� ;� ..� .� Estimated cosfs assoc�ated with the Downtown Tax Increment Financing District Na l are subject to change. The cost of all actiities to be considered for tax increment financing is estimated to be$796,043. ��' - f -;� (As Modified December 2, 1997) 'Th estimate of costs is modified to add $400,000 for land acquisition, landscaping/lighting, sid��+alks/curbs and gutter,and utility line burial for a new total of$13,119,918. Most Recent Modified Modi�cation of As Modified Item TIF Plan BudQet December 2. 1997 New Totals Sources of Funds Tax increment revenue $1,619,107 $1,619,107 Bond Proceeds . $4,765,000 $4,765,000 Real estate sales $102,300 $102,300 Rentllease revenue $7,950,000 $7,950,000 Total Sources of Funds $14,436,407 �14,436.407 Uses of Funds Land/Building acquisition $1,323,673 $100,000 $1,423,673 Site improvements/preparation costs $27>275 $0 �2��2�5 I Installation of public utilities $5,000 $100,000 $105,000 ' Parking facilities $10,000 $0 $10,000 Streets and sidewalks $0 $100,000 $100,000 Social, recreational,conference facilities $3,868,200 $100,000 $3,968,200 or similar public improvements (landscaping/lighting) Bond principal payments $4,765,000 $0 $4,765,000 � Bond interest payments $2,371,470 $0 $2,371,470 Administrative costs $143,000 $0 $143,000 LegaUbond costs $206,300 $0 $206,300 Total Uses of Funds $12,719,918 400 000 $13,119,918 City of Rosemount Modification ro Development Distriet No. I and the Downtown Tax Increment Financing District No. 1 I-2 * APPENDIX A BOUND 'Y MAPS OF DEVELOPMENT DISTRICT NO. 1 AND THE �'O � � TAX INCREMENT FINANCING DISTRICT NO. 1 APPENDIX A"� v� I l 1 � � i ��,-� ` � �, \ I The Downtown TIF District No. 1 ' \ � Development District No. 1 � I � � � City of Rosemount � Dakota County ��-M �;� � � State of Minnesota —",i3 I �' � ,, ; � /� �i, ,� � � ; , ; �; , , �. � , , , � � � � � ;J� � �, , / , . 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I � �ty,��y',�,,�I{L{ . � I � I � � . . � , W," �+• / I . ____ Ehiers and Associates,inc. �� lEAOERS IN PUBLIC FINANCE � October 29, 1997 Chairperson Joseph Hams and County Board Members Dakota County Board of Commissioners County Government Complex 1590 Highway 55 Hastings,MN 55033 Atm: Brandt Richardson,Dakota County Administrator Re: The City of Rosemount and the Rosemount Port Authority's ("City and Port Authority") proposed Modifications to the Development Program for Development District No. 1 and the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. 1 (the "Modifications"). The City of Rosemount will be considering the adoption of a Modification to the Tax Increment Financing Plan for a redevelopment tax increment financing district, located within Development District No. 1, at a public hearing to be held at City Hall,City of Rosemount,on Tuesday,December2, 1997 at approximately 7:30 pm. Enclosed please find one copy of the proposed Modifications to the Development Program for Development District No. 1 and the Modifications to the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. l. 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 to facilitate the purchase of land and the installation of public utilities and improvements within the City of Rosemount. The locarion of the Downtown TIF District No. 1 can be seen on the map as found in the enclosed Y Modifications. The Minnesota Tax Increment Financing Act at Minnesota Statues,Section 469.175, Subdivision 2 and 4, requires that prior to the holding of a public hearing on the adoption or modification of a tax increment financing plan,the Port Authority must provide an opportunity to the members of the affected county board to review the fiscal and economic implications of the proposed modified or new tax increment financing plan 30 days from the transmittal of the enclosed fiscal implications or until the County Board has presented written comment on the proposal,whichever is less. This modification does not create any new Tax Increment Financing Districts and does not increase the geographic size of the Downtown Tax Increment Financing District No. 1, therefore there are no additional�scal imptications that affect taxing jurisdictions. We invite you to attend the public hearing to be held by the City Council on December 2, 1997,beginning at approximately 7:30 pm or to direct any comments or questions that you may have to Dan Rogness,City of Rosemount at(612)423-4411 or to me at(612)339-8291. N:WI[NNSOSAUtOSEMOf�f i�TIP97�FISC_IMP.LTR OFFICES IN MINNEAPOUS,MN AND BROOKFIELD,WI 2950 Norwest Center.90 South Seventh Street.Minneapolis,MN 55402-4100 Telephone 612-339-8291 .FAX 612-339-0854 October 29, 1997 Page 2 Thank you for your consideration in reviewing the enclosed praposaL Sincerely, EHLERS AND ASSOCIATES,INC. —�-�4�c Sid Inman Financial Advisor Acting for and on behalf of the City of Rosemount,Minnesota cc: Ron Batty,Kennedy and Graven Dan Rogness,City of Rosemount Enc. N:VNINNSOTAVtOSEMON'I�TIF97MOD�FiSC_IM P.LTR Ehlers and Associates,inc. � LEADERS IN PUBLIC fINANCE October 29, 1997 Superintendent of Schools ', and School Board Members Independent School District No. 196 14445 Diamond Path West Rosemount,MN 55068 Attn: John T. Haro,Superintendent Re: The City of Rosemount and the Rosemount Port Authority's ("City and Port Authority") proposed Modi�cations to the Development Program for Development District No. 1 and the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. l (the "Modi�cations"). The City of Rosemount will be considering the adoption of a Modification to the Tax Increment Financing Plan for a redevelopment tax increment financing district, located within Development District No. 1, at a public hearing to be held at City Hall,City of Rosemount,on Tuesday,December 2, 1997 at approximately 7:30 pm. Enclosed please find one copy of the proposed Modifications to the Develapment Program for Development District No. 1 and the Modifications to the Tax Increment Financing Plan for the Downtown Tax Increment Financing District No. 1. 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 to facilitate the purchase of land and the installation of public utilities and improvements within the City of Rosemount. The location of the Downtown TIF District No. 1 can be seen on the map as found in the enclosed Modifications. The Minnesota Tax Increment Financing Act at Minnesota Statues, Section 469.175,Subdivision 2 and 4, requires that prior to the holding of a public hearing on the adoption or modification of a tax increment financing plan,the Port Authority must provide an opportunity to the members of the affected school board to review the fiscal and economic implications of the proposed modified or new tax increment financing plan 30 days from the transmittal of the enclosed fiscal implications or until the School Board has presented written comment on the proposal,whichever is less. This modification does not create any new Tax Increment Financing Districts and does not increase the geographic size of the Downtown Tax Increment Financing District No. 1, therefore there are no additional�scal implications that affect taxing jurisdictions. We invite you to attend the public hearing to be held by the City Council on December 2, 1997,beginning at approximately 7:30 pm or to direct any comments or questions that you may have to Dan Rogness,City of Rosemount at(612)423-4411 or to me at(612) 339-8291. N:Vr1 iN NSOTAVtOSEMONt1TIF9'7�7SC_IM P.LTR OFFICES IN MtNNEAPOUS,MN AND BROOKFIELO,WI 2950 Norwest Center.90 South Seventh Street.Minneapolis,MN 55402-4100 Telephone 612-339-8291 . FAX 612-339-0854 October 29, 1997 Page 2 Thank you for your consideradon in reviewing the enclosed proposaL Sincerely, EHLERS AND ASSOCIATES,INC. � a—�.n�--�,� Sid Inman Financial Advisor Acting for and on behalf of the City of Rosemount,Minnesota cc: Ron Batty,Kennedy and Graven Dan Rogness,City of Rosemount Enc. N:VN INNSOTAUtOSEMON'I1TIF97MOD\FISC_lMP.LTR