HomeMy WebLinkAbout7. Endres Tax Increment Financing District and Redevelopment Project No. 2; and Tax Increment Financing Contract �� ' � CITY OF ROSEMOUNT � �
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCII.: April 1, 1997
AGENDA ITEM: Endres TIF District&Redevelopment Project AGENDA SECTION:
No. 2 and TIF Contract Public Hearing
PREPARED BY: Dan Rogness, Commutity Development AGENDA NO.
Director
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ATTACHMENTS: 'TIF Plan and Development Contract APPROVED BY:
The City Council will hold a public hearing at 8:00 p.m. this evening to consider the creation of a new
Redevelopment District and corresponding TIF (economic development)District. The Port Authority, as the
city's economic development agency, is being asked to review this proposal to assist Endres Properties with the
acquisition of property and the completion of site improvements. The project can be summarized as follows:
l. Applicant: Endres Properties LLC (as owner of real estate for Endress Processing)
2. Type of Business: Waste processing facility(bakery/grain food by-ducts into livestock feed)
3. Site: 50.7 acres zoned General Industrial east of TH 52 and north of TH 55
4. Building: 56,845 sq.ft. (13,935 sq.ft. officelresearch); concrete tilt-up panel wa11s.
5. TIF A.ssistance: $385,000 pay-as-you-go (this includes the 10% local contribution)
6. TIF Costs: Reimbursement for grading, earth work, paving, well, septic and partial property purchase
Please review the attached information. I will review the basics of the attached TIF Plan and the Contract at
your meeting. Changes can still be made, as recommended by staff and/or the Port Authority. Related to the
Contract, I am recommending that Section 3.2, "Site Improvement Costs;Land Acquisition" be revised to state
the following project costs to be reimbursed by tax increments:
1. Grading and Earth Work = $125,004
2. Pavin�and Curb/Gutter = $150,000
3. Water/Sewer = $ 50,000
4. Land Write Down = $ 60,000
Total = $385,000
RECOMMENDED ACTION: Motion to Approve a Resolution Establishing Redevelopment Project
No. 2 and Adopting the Redevelopment Plan Thereof,• and Establishing within Redevelopment Project No.
2 the Endres ?'ax Increment Financing District and Adoptireg the Related Tax Increment Financing Plan
Thereof.
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Motion to Authorize the Execution of the Contract for Private Redevelopment By and Between the
Rosemount Port Authority and Endres Properties, L.L.C. dated April l, 1997.
CITY COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1997-
RESOLUTION ESTABLISHING REDEVELOPMENT PROJECT NO. 2 AND
ADOPTING THE REDEVELOPMENT PLAN THEREFOR; AND ESTABLISHING
WITHIN REDEVELOPMENT PROJECT NO. 2 THE ENDRES TAX INCREMENT
FINANCING DISTRICT AND ADOPTING THE RELATED TAX INCREMENT
FINANCING PLAN THEREFOR
WHEREAS, it has been proposed that the Port Authority adopt the Redevelopment Plan
for Redevelopment Project No. 2 and adopt a Tax Increment Financing Plan for the Endres Tax
Increment Financing District(collectively, the"Plans"), all pursuant to and in confornuty with
existing law, including Minnesota Statutes, Sections 469.001 through 469.047, and Sections
469.174 to 469.179, inclusive, as amended, a11 as reflected in the Plans and presented for the
Council's consideration, and,
WHEREAS,the Council has investigated the facts relating to the Plans, and,
WHEREAS,the City hasperformed a11 actions required by law to be performed prior to
the adoption and approval of the Plans, 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 Endres District, a review of and written comment on the Plans by the City Planning
Commission, and the holding of a public hearing upon published notice as required by law, and,
WHEREAS, certain written reports(the"Reports")relating to the Plans and to the
activities contemplated therein have heretofore been prepared by staff and submitted to the
Council and/or made a part of the City files and proceedings on the Plans. The Reports include
data, information and/or substantiation constituting or relating to (1)the"studies and analyses" on
why the Endres District meets the so-called"but for"test; and (2)the basis for the other findings
and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the
Reports, which are hereby incorporated into and made as fully a part of this resolution to the same
extent as if set forth in full herein.
Findings for the Adoption and Ap�roval of the Plans.
The Council hereby finds that the Plans are intended and, in the judgment 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 Plans, which are hereby incorporated herein.
RESOLUTION 1997-
Findings for the Establishment of the Endres Tax Increment Financing Distric�
The Council hereby finds that the Endres Tax Increment Financing District is in the public
interest and is an"economic development district"under 11�innesota Statutes, Section 469.174,
subd. 12.
The Council further finds that the proposed development would not occur solely through
private imestment 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 mazket value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum
duration of the Endres District permitted by the Tax Increment Financing Plan, that the Plans
conform to the general plan for the development or redevelopment of the City as a whole; and
that the Plans will afford maximum opportunity consistent with the sound needs of the City as a
whole, for the development of the Endres District by private enterprise.
The City elects to make a qualifying local contribution in accordance with Minnesota
Statutes, Section 273.1399, subd. 6(d), in order to qualify the Endres District for exemption from
state aid losses set forth in Section 273.1399.
The Council further finds, declares and determines that the City made the above findings
and has set forth the reasons and supporting facts for each determination in writing, attached
hereto as Exhibit A.
The City of Rosemount elects to calculate fiscal disparities for the Endres District in
accordance with Minnesota Statutes, Section 469.177, subdivision 3, clause b, which means the
fiscal disparities contribution would be taken from within the Endres District.
NOW THEREFORE BE IT RESOLVED that the Ci Council of the Ci of
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Rosemount hereby approves, ratifies, establishes and adopts the Plans as presented to the Council
on this date, including without limitation the findings and statements of objectives contained
, therein. The Plans shall be laced on file in the office of the Communit Develo ment Director.
P
Y P
The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this
Council for its consideration all further plans, resolutions, documents and contracts necessary for
this purpose.
The Auditor of Dakota County is requested to certify the original net tax capacity of the
Endres District, as described in the Plans, and to certify in each year thereafter the amount by
which the original net tax capacity has increased or decreased; and the City of Rosemount is
authorized and directed to forthwith transmit this request to the County Auditor in such form and
content as the Auditor may specify, together with a list of all properties within the Endres District
for which building permits have been issued during the 18 months immediately preceding the
adoption of this resolution.
2
RESOLUTION 1997-
ADOPTED this 1 st day of April, 1997, by the City Council of the City of Rosemount.
Cathy Busho,Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted against: ,
Member absent: ',
3
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EXHIBIT A
RESOLUTION 1997-
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing
Plan for the Endres Tax Increment Financing District, ("the Endres District") as required pursuant
to 11�nnesota Statutes, Section 69.175, Subdivision 3 are as follows:
1. Finding that the Endres District is an "economic development district"as defined in
Minnesota Statutes, Section 469.174, Subdivision 12.
The Endres District is in the public interest because it will discourage commerce, industry,
or manufacturing from moving their operations to another state or municipality; it will
result in increased employment in the state, and it will result in preservation and
enhancement of the tax base of the state.
2. Finding that the proposed development, rn the opinion of the Council, would not occur
solely through private irrvestment within the reasonably foreseeable future and that the
increased market value of the site that could reasorrably 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 vadue of
the projected tax increments for the maximum duratron of the district permitted by the
plan.
Due to the high cost of development on the parcels 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 Endres District and the use of tax increments has been performed as
described above. If a11 development which is proposed to be assisted with tax increment
were to occur in the Endres District, the total increased market value would be up to
$2,000,000. It is the Council's finding that no development with a market value of
greater than $1,390,000 would occur without tax increment assistance in this district
within 9 years. This finding is based upon evidence from general past experience with the
high cost of acquisition and site improvements in the general area of the Endres District
due, in part, to the Mississippi River corridor restrictions (see Cashflow in Appendix C in
the Tax Increment Financing Plan for the Endres District).
3. Finding that the Endres District conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The Plan was reviewed by the Planning Commission on March 25, 1997. The Planning
Commission found that the Plan conforms to the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for the Endres District will afford
maximum opportunity, consistent with the sound needs of the City as a whole,for the
development of Redevelopment Project No. 2 by private enterprise.
The project to be assisted by the Endres Tax Increment Financing District will result in
increased employment in the City and the State of Minnesota, increased tax base of the
State, and add a high quality development in the general indsutrial a.rea of eastern
Rosemount (Pine 8end district).
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PLEASE REFER TO THE PORT AUTHORITY PACKET FOR
APRIL 1, 1997
TO REVIEW THE T.I.F. PLAN
AND THE
DEVELOPMENT CONTRACT
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AFFIDAVIT OF MAILED AND POSTED HEARING NOTICE
FOR
WILLIVER SANITARY SEWER IMPROVEMENTS
CITY PROJECT #281
STATE OF MINNESOTA )
COUNTY OF DAKOTA )ss.
CITY OF ROSEMOUN7 )
Susan M. Walsh, being first duly sworn, deposes and says
I am a United States Citizen and the duly qualified Clerk of the City of Rosemount,
Minnesota.
On March 19, 1997, acting on behalf of the said City, I posted at the City Hall, 2875
145th Street West, and on March 19, 1997 deposited in the United States Post
Office of Rosemount, Minnesota. copies of the attached notice of public hearing
regarding the proposed Willner Sanitary Sewer Improvements for sanitary sewer for
City Project #281, enclosed in sealed envelopes, with postage thereon fully prepaid,
addressed to the persons listed on the attached listings at the addresses listed with
their names.
There is delivery service by United States Mail between the place of mailing and the
places so addressed.
,
;
S an M. alsh �,
City Cler�
City of Rosemount
Dakota County, Minnesota
Subscribed and sworn to before me this d 9� day of March, 1997.
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" r�oTARYPuauc-M�r��soTA Notary Public
DAKOTA CO�U 3�
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� CITY OF ROSEMOU NT �815 C145thS�ceetWesc
.� P.O.Box 510
`"� Ever thin s Comin ll ROSemOUnti! Rosemount,MN
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Phone:012-423•�1411
Fax:612-4Z3•SZ03
PUBLIC NOTICE li�
NOTICE OF PUBLIC HEARING ON IMPROVEMENTS !
WI LNER SANITARY SEWER IMPROVEMENTS ',
L
CITY PROJECT #281 '
TO WHOM IT MAY CONCERN: II
NOTICE IS HEREBY G1VEN, that the City Council of the City of Rosemount, Minnesota ',
will meet at 8:00 o'ciock p.m. or as soon thereafter as possibie, Tuesday, Apri! 1,
1997 in the Council Chambe�s of the City HaA, 2875 145th Street West, to consider
the following improvements: '
City Project #281 - Willner Sanitary Sewer Improvements
The nature of improvements shall include the construction of sanitary sewer.
The total estimated cost of said improvements is 526,100.
The area proposed to be assessed for the fo�egoing improvements would be all that
area generally described as: Parcel Identification Numbers 34-02010-010-80 and 34-
02010-060-80 within the south 112 of Section 20, Township 115, Range 19 as
recorded in the City of Rosemount, Dakota County, Minnesota.
Such person(s) as desires to be heard with reference to the proposed improvements
will be heard at this meeting. Written or oral opinion will be considered.
Dated this 18th day of March, 1997.
BY ORDER OF THE CITY COUNCIL.
�
Su an M. Ish
City Clerk
City of Rosemount
Dakota County, Minnesota
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MAILING LIST
WILLNER SANITARY SEWER IMPROVEMENTS
CITY PROJECT #281
PID NUMBER LAST NAME FIRST NAME MAILING ADDRESS CITY,STATE,ZIPCODE
34-02010-010-80 WILLNER STEVEN I 13930 SOUTH ROBERT TRAIL ROSEMOUNT, MN 55068
34-02010-060-80 FRANZ TODD 13940 SOUTH ROBERT TRAIL ROSEMOUNT, MN 55068