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Home My WebLink About4.a. Adoption of Tax Incrementt Plan , C ~ CITY OF ROSEMOIINT EXECUTIVE SUDlMARY FOR ACTION PORT AUTHORITY MEETING DATE: DECEMBER 20, 1994 AGENDA ITEbi: CARLSON TAX INCREMENT PLAN AGENDA SECTION: OLD BUSINESS PREPARED BY: RON WASMUND, AGENDA NO. COMMUNITY DEVELOPMENT DIRECTOR 4 . A. ATTACI�iENTS: DRAFT TIF PLAN, MODIFICATION OF APPROVED BY: REDEVELOPMENT PLAN Ron and Rich Carlson desire to redevelop the southwest corner of Highway 3 and County Road 42 into a series of commercial establishments. Their current business of industrial equipment sales will relocate to facilitate the redevelopment of the site. They are suggesting that there will be an initial project which consists of a motel . Second phase is suggested to be a sit down style restaurant. Subsequent phases will be other types of commercial services. They are asking the Port Authority to create a tax increment district and pledge some of the increment from this district to assist with the financing of the project . They have provided a list of eligible construction items and their associated costs . Those items and costs are identified in the attached TIF plan. It has been determined by staff and consultants that this project will not be able to be done "but for" the assistance provided by tax increment. The decision and findings that the Port Authority has to make on the 20th a�e whether this plan is something they want to do and that the project wouldn' t be done but for their help. The decision needs to be based on whether the Port Authority finds this type of redevelopment is consistent with their philosophies and state laws irrespective of a specific project. As the specific projects are proposed they will each need to be presented to the Port Authority for review and recommendation in separate action. Once you have determined that the redevelopment project is consistent with the laws and philosophies of the Port Authority, you will make a recommendation to the City Council for a public hearing and approval of the plan. The planning commission considered the plan on December 13 , 1994 and found it to be in compliance with the comprehensive guide plan. David Drown from Springsted will be in attendance and make a presentation regarding the plan. The city attorney will be present to review the modification of the redevelopment plan. RECOI�Il�IENDED ACTION: Motion to approve A RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN FOR THE ROSEMOUNT REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING (REDEVELOPMENT DISTRICT NO. l-2) . PORT AUTHORITY ACTION: ROSEMOUNT PORT AUTHORITY . BESOLUTION NO. � RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN FOR THE ROSEMOUNT REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-2 BE IT RESOLVED By the Board of Commissioners ("Board") of the Aosemount Port Authority ("Authority") as follows: Section 1. Recitals. 1.01. The City of Rosemount ("City") has previously established the Rosemount R.edevelopment Project (the "Project") and a Redevelopment Plan therefor, originally administered by the Housing and R.edevelopment Authority in and for the City of Rosemount ("HRA"), and Development District No. 1 (Development District) and a Development Program (Program) therefor, originally administered by the Rosemaunt Economic Development Authority ("EDA"). 1.02. The Authority currently administers the Project and the Development District, which a.reas have the same boundaries and the same general objectives and public purpose. 1.03. In order to administer the Authority's development �nd redevelopment efforts more efficiently, the Authority has proposed to consolidate the Project and the Deve�opment District, and to modify th� Redevelopme�t Plan for the Project accordingly, all pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Law") . 1.04. The Aut�ority has also proposed the establishment within the Project of Tax Increment Financing District No. 1-2 (the "TIF District") and a Tax Increment Financing Plan ( "TIF Plan") therefor, pursuant to the HRA Law and Minnesota Statutes, Sections 469.174 through 469.179 ( the TIF Act ) . 1.05. The Authority has caused to be prepared documents titled "Modification of Redevelopment Plan for Rosemount Redevelopment Project, Rosemount Port Authority, City of R.osemount, Minnesota," and "Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 1-2 (Carlson Project), City of Rosemount, Minnesota." 1.06. Th at the modi fied Bedev elopment Plan and the TIF Plan are cons st nt Board finchng th with the comprehensive City plan. Section 2. Plans Adopted; Further Proceedin�s. 2.01. The modified Redevelopment Plan and the TIF Plan are hereby approved and adopted. 2.02. The Board hereby makes all the. :xfindings set forth in the Redevelopment Plan and the TIF Plan, which documents $re incorporated herein by xeference. 3JH80913 1 R5230-5 MODIFICATION OF REDEVELOPMENT PLAN FOR ROSEMOUNT BIDEVELOPMENT pROJECT ROSEMOUNT POxT AUTHORITY CITY OF ROSF�dOUNT, MINNESOTA Adopted: December 20, 1994 Drafted By: FIOLMES & GR.AVEN, CHARTERED 470 Pillsbury Center Minneapolis, Minnesota 55402 (612) 337-9300 s�eoeaa P3230-5 "Redevelopment Plan" means the �tedevelopment Plan for the Redevelopmeat Project, dated May 1, 1979, as subsequently modified, and as it may be amended or supplemented from time to time. "State" means the State of Minnesota. "Tax Increment Financing District" or "TIF District" means the Rosemount Redevelopment Project TIF District, as originally established oa May 1, 1979, pursuant to Minnesota Statute,s Section 462.585; TIF District No. 1-1 established March , 1990; TIF District No. 1-2 as established December 20, 1994; aad any other TIF District that may be created within the Project. "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, Sectian 462.585 (1978) and Minnesota Statutes, Sections 469.174 through 469.179, as amended and supplemented from time to time. "Tax Increment Financing Plan" means the Tax Increment Financing Plan for any Tax Increment Financing District within the Project as such plan may, from time to time, be amended or supplemented. "Tax Increments" means the tax increments derived from the Tax Increment Financing District. II. STATEMENT OF NEED AND PUBLIC PURPOSE . A. Back�round. • In May, 1979, the City Council of the City of Rosemount and the Board of Commissioners of the HRA approved the establishment of the Rosemount R.edevelopment Project and a Redevelopment Plan for the Project, pursuant to the HRA Law. The purpose of the R.edevelopment Project was to facilitate commercial and industrial development of unused and underused land in the City and to increase employment and tax base. At that time, the City Council and the HRA Board of Commissioners found that land within the Project area was unused or underused for a variety of reasons, including fragmented ownership of property, inadequate zoning, excessive property development costs associated with clearaace, grading and soil corrsction, and inadequate public improvements. The original Project area was also certified as a tax increment district pursuant to Minnesota Statutes, Section 462.585. That area, described in Exhibit A hereto, constitutes a pre-1979 TIF District and is now designated as the R o s e m o u n t R e d e v e l o p m e n t P r o j e c t TIF District. In March 1990, the Rosemount Economic Development Authority ("EDA") and the City established Development District No. 1 ("Development District") and a Development Program for that district, all pursuant to Minnesota Statutes, Sections 469.124 to 469.134. The area of the Development District included all of the area within the Redevelopment Project and additional land to the north and south. The public purpose and objectives for the Development District were substantially the same as for the Redevelopment Project. s,rBaoeaa , 3 RS230-S III. STATUTORY AUTHORITY The Authority �is authorized under the Authority Law and the HRA Law to modify aad administer the Ftedevelopment Plan and the Bedevelopment Project, and to fin.ance Public Costs through tax increment financing pursuant to the TIF Act. IV. STATEMENT OF OBJECTIVES The Authority incorporates by reference all the objectives previously set forth in the original Redeveloprnent Plan dated May 1, 1979, and in subsequent modifications approved on March , 1990 aad September 15, 1994. The Authority also incorporates by reference all the objectives set forth in the Development Program for the Development District as approved on March , 1990 and in the modificstion thereof approved September 15, 1994. In addition to all previously stated objectives, the Authority intends to accomplish the following generai objectives within the Redevelopment Project: � �,. Promote the prompt development and redevelopment of property within the Project area in a manner consistent with the City comprehensive plan, which property is currently less productive because of lack of use, investment and public services. g. Promote the concentration of appropriate commercial and industrial development within the Project area in order to maintai.n the area in a manner compatible with its prominence in the City. C. Construct, acquire or finance any public facilities, including sanitary sewer, water, storm d o ment of the Project amrea,necessary and desirable for the development or redevel p D. Assist in development or redevelopment through provision of public services, demolition and relocation, soil and terrain corrections or site improvements, or land acquisition, all in cases deemed appropriate by the Authority. E. Specifically target development and redevelopment efforts in the "Town Center," in the Authority's industrial park, and in proposed TIF District No. 1-2. F. Employ any powers of the Authority under the Authority Law and the HRA Law for the benefit of the Project in such cases and upon such terms as the Authority may deem appropriate. v, pROJECT AREA This modification does not alter theroved Se t ember 15,�1992 c The Pro ect specified in the e.�cpansion of the Project app P boundaries are described in attached Exhibit A and illustrated in the map attached as Exhibit B hereto. VI. PROPERTY ACQUISITION The Authority may acquire such property, or interests thersia„ as the Authority may deem necessary or desirable to carry out the objectives of t�e saaeosaa 5 RS230-S . , EXHIBIT A �escription of the Redevetopment Projeci 1. rVarratire Description of ticr Pro�cct Bvcatdary Beginning at a point formcd by the intcrsection of the nartherly rioht-of-�vay line of Dakota County ; - State Aid Hi;hway 42 and the�southwest corner of l.ot 66 of Marian Terrace; Thence northerly along the westerly Loc Line of said Lot 66 of Marian Terrace extcnded to a point • • formed by the south�vest corner of Lot 12 Marian Terrace Replat 2nd Addition; . Thence, Easierly along the southerly lat line of said Lot 12 Marian Terrace Replat 2nd Addi[ion cort= tinuing aton; the southerly lot line of Lot 9 Mariin Terrace Replat 2nd Addition to the sauthe�st corner of Lot 9 of Marian Terrace Repiat 2nd Addition; Thence northerty on the East l.ot Line of Lot 9 �'larian Terrace Replat 2nd Addition to the South�vest eorner of Lot 13 �'larian Tzrrace Replat; Thence sou[heasterly alono the southerly lot line of said Lot 13 extended to its intersection with the westerly lo[ line of Lot 14 �larian Terracc R�plat; Thence southerty to the southwest corner of said Lot 14 ��tarian Terrace Replat; Then�e southeasterly along the southerly 1ot (ine of Lot 1� �larian Terrace Replat to the sout;�east � eorner of said l.at 14 �tarian Terrace Rep!at; Thence northerly alon; the easter(y lot lines of Lots 1� throu;h 27 Marian Terrace Replat to the north- easterly corner of Lot 27 Marian Terrace Replat; Thence westerly along the southzrly ri�ht-of-way line of Lower 147th S[reet West to a point formed by the extension of the westerly line of Lot 61 Auditors Subdivision No. 1 ; Thence northerty a(ong the �vesterly line of Lot 61 Auditors Subdivision No. 1 extendcd to the south- east corner oP Lot 4,Auditors Subdivision No. 27; Thence wes[erly along the southerly Lot Line of said l.ot 4,Audi[ors Subdivision No. 27 extended to , the west rioht-of-way line of Cameo Avenue; Thence nortf�erly along said �vest ri;iit-of-way line to its intersection with the southezst corner of Lot 1, Block 2,T.T.Conley Addicion; Thence easterly across Cameo Avenue to the south�vest corner of Lot 13 School Addition; a-1 � ,�, � ' E��iIBIT B �. . OESCRIPTiON OF PROPEATY � 1992 Expansion of Project 713e bcundarias oi the Oevelopment OisVict are as tatl�oov,rs: Begin at a point tarmed by the inte�seciioR ot the cartter Gne of 16Qth SVeei and �e Westem cight of way Gne of Chippendale Avenue; Thence narth along the westem tight cf way fine ot Cttippendale Avenue to trie no�ti��riy dght ot way of Oakata Ccunry State Aid Ksghway 42 (CSAH 42); � � Thenca east alang the ncrtherrt righi af way 6ne cf Oakota CSAH 42 to the wester;y tat I�ne ot Lat 6b cf Marian Terra:,� extended to a paint tarmed by the scutttwest c�rner ot �ot �z Marian Terraca Reptat 2nC ACdttio�; ' Thenca east a�cng the sauther�y lct �ne af said Lot t2, Marian Te�rac� Reptat 2�d Addit�n continuing along tha scuthe�ty la; fine ot �ot �, Mariz� Te:tace Replat 2�d AddiGcn; � 7her�ca ncM an the e�si lot line ot L�t 9, Marian Tetrarx Repl2: 2rtd A.dCition to fie scuthwest carner et Lot 13, Mu�an ie:race Repta:; � . Thance southeasta�ty along the so�tharfy 1ot li��a af said tci 13 e�ended co its interse�.icn witt► the westerly lot lina of Lot S 4, Mari.an Terraca Repfat; Then�.s south to ;ha scuL�west comer ot szd Lot 14. Marian TerracA �egta� She�cs sa�heasterEy along tba southerty lot Gna o; Loi 14, Marian Tesr�c� Re�lai to ��e seu;.'�east cornat c: said !c: 14, Marian Terra�: Reptat, ';'hsnr,a north a!�ng the easterty !ot Gnes cf Lots 14 thrcugh �, Mariart TeRac� Rapla; to the s:.uthe2si c:rner of si� bt 14, Marian Terr3ce Replat; Thence west along tt�e southerty right of way line of Lower 147th SVeet west to a pdint to�med by tne e�aensia;� ot tha westeriy line c( Lot 61, A�:di2or's SuDdivision Numhet 1; Thencs north along ihe west�rfy fine ot Lot 6t, Auditor's Suhd,vision Number 1 extenCedl to tfza seutheast come� ot �ot 4� Audttot's SuDdlvEsian Numher 27; 'fhenes v�resi along the sautha�ly tot Cuie ot sald Lot 4, Auditors SubdNision Nesmber �27 extanded to trie west �ight ot way Gne ct Camec Averwe; Thenca north afong said west right ot v,ray tJne ot Cameo Avenue to its Iniersec'Jon witt� (he saliheasi camer ot Lot 1. Btocic 2, T.T. Conley Addlvon; Thence east acress Camee Avenus to the southwesi comer ot iot 13, Schoo! AdditioR; Thectica north �ieng easterly right oi way Gne o( Camea Avenue ta the nocthwest comer+ot Lot 12, Sc.�ool Addition; .- ,:,� B-1 / ��aa.• L.� � ( �" ;--- .. ' c.. :s:::;..:.. EXHIBIT C ,is,.. .� .i �.:.�:.•:•:•::�.�.�. �� . :�sw.........:: '��!�C� �---r' ►��.Y ;:yc[r' '.'� � . ...:: �/ f� �[l�.w.n��r ..:::` � ��. . r::::: � �:1 ':.,3sn�.1 C I � � •• �• 4 �N ; +. O 7�• . 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'�\ 1'•.�•�••• $ l ..�. ........ . � . ... I ..... �I�t . �i .; C–, City of Rosemount, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 1-2 (Carison Project) Dated: December 15, 1994 . . � City of Rosemount, Minnesota � Section A Definitions The terms defined in this section have the meanings given he�ein, unless the context in which they are used indicates a diffe�ent meaning: "Authori�,y„ means the Port Authority in and for the City of Rosemount, Minnesota. "Citv„ means the City of Rosemount, Minnesota; also referred to as a "Munici a�tv". "� CounciP' means the City Council of the City; also refer�ed to as the "Goveming Bod�. "County" means Dakota County, Minnesota. "Redevelopment Plan" means the Rosemount Redevelopment Plan for the Rosemount Redevelopment Project Area (as modified December 20, 1994). "Redevelopment PrQject Area" means the geographic area of the Rosemount Redevelopment Project Area (originally established May 1, 1979). "School District" means Independent School District No. 196, Minnesota. "State" means the State of Minnesota. " IT F Act" means Minnesota Statutes, Sections 469.174 through 469.179, both inclusive. "TIF District" means Tax Increment Financing (Redevelopment) District No. 1-2. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statement of Need and Public Purpose See Section II of the Rosemount Redevelopment Plan. Section C Statement of Authorization See Section III of the Rosemount Redevelopment Plan. Section D Statement of Objectives See Section IV of the Rosemount Redevelopment Plan. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, or other improvements, and more than 50% of the buildings (not - including outbuildings) are structurally substandard requiring substantial renovation or G� SPRINGSTED Page 1 City of Rosemount, Minnesota Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt of the first tax inc�ement. This term shall be reduced to 20 years if the Authority elects to delay receipt of the first tax increment until a minimum market vatue for the TIF District is reached or exceeded, or four years have elapsed from the date of certification, whichever is earlier. Modifications of this plan (see Section AA) shall not extend these limitations. The Authority does not elect to delay receipt of the first tax increment. The Authority also does not anticipate at this time that the TIF District will remain in existence the maximum duration allowed by law, but reserves the right to allow the TIF District to exist for such a duration. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. In addition, no tax increments shall be paid to the Authority from the TIF Dist�ict after three years from the date of certification unless within that time period: (1) bonds have been issued in aid of the Redevelopment Project /krea (except revenue bonds issued pursuant to M.S. Sections 469.152 to 469.165); (2) the Authority has acquired property within the TIF District; or (3) the Authority has constructed public improvements within the TIF District. Section G Property to be Included in the TIF District The TIF District is a two parcel area located within the Redevelopment Project Area. A map showing the location of both the TIF District and Redevelopment Project Area is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below; Parcel ID Number Legal Description 34-71150-021-04 Part of Lot 2 Lying N of Line Drawn From Point on E Line Lot 3 360.21 Ft S of NE Corner SE to Point on E Line Lot 2 260 Ft NE of SE Corner Lot 2 and There Term All � in Blk 4 Ex N 150 Ft of W 50 Ft of Blk 4 Lot 2 34-71150-032-04 N 360.21 Ft of Lot 3 Blk 4 as Measured Along E Line of Lot 3 Blk 4 The area encompassed by the TIF District shall also include all street, alley and railroad right- of-way and utility or drainage easements located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District. GJ SPRINGSTED Page 3 , � City of Rosemount, Minnesota Section K Estimated Public Costs The estimated public costs of the proposed development in the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land Acquisition /Writedown $ 653,000 On-Site Street Utilities 225,000 Soil Contamination 150,000 Building Demolition 125,000 Site G�ading 50,000 Relocation Costs 250.000 Subtotal $1,453,000 Public Improvements (outside TIF District) 159,375 Capitalized Interest 300,125 Administration 212.500 Total Public Costs $2,125,000 The Authority reserves the right to adjust the amount of any items listed above or to incorporate additional eligible items, so long as the total estima#ed public cost in not increased. Section L Estimated Sources of Revenue The Authority anticipates providing financial assistance to the p�oposed development through the use of a combination of internal funding and pay-as-you-go reimbursement. As tax increments are collected from the TIF District in future years, a portion of these taxes will either be distributed to the City as reimbursement for public costs internally funded, or distributed to the developer as reimbursement for other public costs incurred. Reimbursement may include accrued interest, but in no event will the total reimbursements exceed the total public costs incurred plus such accrued interest. The Authority reserves the right to finance any or all public costs of the TIF District using pay- as-you-go assistance, internal funding, general obligation debt, or any other financing mechanism authorized by law. The Authority reserves the right to use other sources of revenue legally applicable to the Redevelopment Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority does not anticipate that tax increment bonds will be issued to finance any of the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed $2,125,000. Section N Original Net Tax Capacity The County Auditor shall certify the Original Net Tax Capacity of the TIF District, which will be the total net tax capacity of aN property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, � this value is based on the previous assessment year. For districts certified befinreen July 1 and December 31, inclusive, this value is based on the current assessment year. G� SPRINGSTED Page 5 • City of Rosemount, Minnesota (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal disparity increase in the TIF District (since the Original Net Tax Capacity was certified) times the appropriate fiscal disparity ratio. The method the Authority elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (b) above. The Authority elects option (a) in the determination of the cur�ent net tax capacity of the TIF District. The County Auditor shall certify to the Authority the amount of Captured Net Tax Capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the Captured Net Tax Capacity of the TIF District. Such amount shalf be known as the Retained Captured Net Tax Capacity of the TIF District. The projected tax increment generated over the anticipated life of the TIF District is shown in Exhibit IL Section Q Use of Tax Increment The Authority has determined that it will use 100% of the tax increments generated by the TIF District for any of the following purposes: (1) Pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section �; (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District in proportion to their local tax capacity rates. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to cirGumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, 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 prohibition does not apply to the construction or renovation of a parking structure, a common 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 community. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sales of praperty at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would othen�vise be paid for by the developer or beneficiary. G� SPRINGSTED Page 7 � City of Rosemount, Minnesota Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; (3) relocation benefits paid to, or services provided for, persons or businesses located within the TIF Distnct; or (4) amounts used to pay interest on, fund a reserve for, or sell at a discount, tax increment bonds. Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lessor of (a) 10% of the total estimated public costs authorized by the TIF Plan or (b) 10% of the total tax increment expenditures of the project. Section U Limitation on Property Not Subject to Improvements If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the Original Net Tax Capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing strest. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify tne net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the Original Net Tax Capacity of the TIF District. _ Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to the other jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. �J SPRINGSTED Page 9 � City of Rosemount, Minnesota Section AA Modifications of the Tax increment Financing Plan Any reduction or enlargement in the geographic area of the Redevelopment Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the Captured Net Tax Capacity to be retained by the Authority; increase in the total estimated public costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the Redevelopment Project Area or the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's Original Net Tax Capacity, or the Authority agrees that the TIF District's Original Net Tax Capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the Redevelopment Project Area or the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AB Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue. The Authority shall also request that the County Auditor certify the Original Net Tax Capacity and Net Tax Capacity Rate of the T1F District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the total property taxes generated by the Retained Captured Net Tax Capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Audito�receives the request for certification of a new TIF District, or for modification of an existing TIF District, on or before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the Original Net Tax Capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: GJ SPRINGSTED Page 11 . � City of Rosemou�t, Minnesota (c) installation of public utilities or other public imp�ovements; and (d) administrative cdsts, including the allocated cost of the Authority. (5) for properties sold to develope�s, the total cost of the property to the Authority and the price paid by the developer; and (6) the amount of tax-exempt obligations, other than those reported under clause (3), that were issued on behalf of private parties for facilities located within the TIF District. The City must also annually report to the State Commissioner of Revenue, by March 1 of each yea�, the following: (1) for the entire City: (a) the total principal amount of nondefeased tax increment bonds outstanding at the end of the previous calendar year; and (b) the total amount of principal and interest payments that are due fo� the current calendar year on tax increment bonds. (2) for each tax increment financing district in the City: (a) the type of district; (b) the date the TIF District is required to be decertified; (c) the Captured Net Tax Capacity of the TIF District, by property class, for taxes payable in the current calendar year; (d) the tax increment revenues for taxes payable in the current calendar year; (e) whether the TIF Plan permits tax increment revenues to be expended for activities located outside of the TIF District, and (fl any additional information that the Commissioner of Revenue may require. GJ SPRINGSTED Page 13 �.- _ -,��- Projected Tax Inc�ement Report City of Rosemount, Minnesota Tax Increment Financing (Redevelopment) District No. 1-2 Carlson Project (Over Anticipated Life of TIF District) Less: Less: Retain,ed Times: Less: Annual Total Original Fiscal Captured Tax Annual Adm./Pooling Annual Period Net Tax Net Tax Disparities @ Net Tax Capacity Gross Tax Retainage Net Tax Ending Capacity Capacity 0.0000% Capaciry Rate Increment 17.50% Increment ��) �2) (3) �4) �5) (6) (�) �8) (9) ------------- ------- ------ ------------------ --- 12/31/95 22,389 22,389 0 0 125.668% 0 0 0 12/31/96 22,389 22,389 0 0 125.668% 0 0 0 12/31/97 94,733 22,389 0 72,344 125.668% 90,913 15,910 75,003 12/31/98 117,733 22,389 0 95,344 125.668% 119,817 20,968 98,849 12/31/99 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2000 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2001 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2002 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2003 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2004 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2005 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2006 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2007 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2008 184,433 22,389 0 162,U44 125.668% 203,637 35,636 168,001 12/31/2009 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2010 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2011 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2012 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2013 184,433 22,389 0 162,044 125.668% 203,637 35,636 168,001 12/31/2014 184,433 184,433 0 0 125.668% 0 0 0 m ---------------- ------------ ---- ------------------ X $3,265,285 $571,418 $2,693,867 = � -i Prepared by: Springsted Incorporated ( 12-Dec-94) Estimated Impact on Other Taxing Jurisdictions Report City of Rosemount, Minnesota Tax Increment Financing (Redevelopment) District No. 1-2 Carison Project Without TIF District With TIF District -- ------ -----1-- ---------------------------- Projected Hypothetical 1993/94 1993/94 Retained New Hypothetical Hypothetical Tax Generated Local 1993/94 Local Captured Local Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local Captured Jurisdiction Capacity (1) Tax Rate Capacity (1) Capacity Capacity Tax Rate Tax Rate N.T.C. City of Rosemount 7,281,254 32.297°� 7,281,254 162,044 7,443,298 31.594% 0.703°k 51,196 Dakota County 197,911,016 27.474% 197,911,016 162,044 198,073,060 27.452% 0.022% 44,484 ISD #196 68,891,791 60.933% 68,891,791 162,044 69,053,835 60.790% 0.143% 98,507 Other (2) ——— 4.964% ——— 162,044 ——— 4.964% ——— ——— Totals 125.668°� 124.799% 0.869°k Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of � the taxing jurisdictions above,the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case,the total local tax rate would decrease by 0.869% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not availabte to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. m x _ � (1) Taxable net tax capacity equals net tax capacity less captured TIF,fiscal disparity contribution and powerline values. "� (2) The impact on these taxing jurisdictions is negligible since they represent only 3.95% of the total tax rate. � Prepared by: Sringsted Incorporated (12—Dec-94 )