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Home My WebLink About4.b. Update on CMC Heartland Partnerrs Request for Port Authority Assistance in Developing Property CITY OF ROSEMOUNT EXECUTIVE SUbIlKARY FOR ACTION PORT AUTHORITY CONIMISSION MEETING DATE: OCTOBER 19, 1993 AGENDA ITEM: CMC HEARTLAND REQUEST FOR AGENDA SECTION: ASSISTANCE IN REDEVELOPING PROPERTY OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA �� /„ ECONOMIC DEVELOPMENT COORDINATOR �R{� ATTACI�2ENT5: MEMO FROM ATTORNEY MILES, TIF APPR VED Y: PROJECTIONS FROM SPRINGSTED, CORRESPONDENCE FROM MATT EBNER OF CMC CMC Heartland Partners has requested port authority assistance in redeveloping its 103 acre site near 145th Street. I have begun assembling information necessary for the commissioners to decide on the request. Attached you will find a memorandum from Mike Miles raising two issues: 1. clean-up costs and responsibility for those costs 2 . warranting title Also attached for your review is correspondence from CMC Heartland providing a projection of their development and a worst-case scenario for some costs . I provided this information to Springsted Inc. and asked for a projection of TIF revenue. That work is also attached for your review. I have also visited with CMC people about the contamination issue raised in Mr. Miles memorandum. To determine the extent of the contamination, if any, CMC has authorized environmental analysis of the property at its expense. That work will be done in about four weeks. When the environmental work is completed, I will again place the request on your agenda for consideration. If you have any additional issues that you want researched regarding the CMC request, please raise them at the October 19th meeting. RECObmIENDED ACTION: None. Discussion item only. PORT AUTHORITY ACTION: CMC HEaitTr�a�vD PaR�Rs 547 West Jackson Boulevard.Suite 1510.Chicago,Illinois 60661 312•294-0440 Direct Mail To:P.O.Box 6205.Chicago,Illinois 60680-6205 F.+x 312.6b3-9397 October 8, 1993 Mr. John Miller Economic Development Coordinator City of Rosemount 2875 �45th Street West P. O. Box 510 Rosemount, MN 55068-0510 Dear Mr. Miller: This letter will attempt to answer the questions raised in our telephone conversation on Thursday, October 7. First, we anticipate building approximately 45 single-family homes during 1994, and a total of 90 single-family and cluster homes each year thereafter through 2000. The average retail value of the single-family homes we are planning on building is $137, 000, and the average retail value of the cluster homes is $116, 000. We expect each price to rise at the compounded annuaL.rate of 5%. Second, the 1993 tax-year real estate tax for Parcel, A, approxi- mately 103 acres, was $11,429: Third, regarding the Soo line land issues; it now seems that the mast expensive price that the Soo might possibly ask for their land is $25, 000 per acre. Therefore, the worst case scenario would entail acquiring 9 acres at a total cost of $225, 000. However, there has been some discussion with the Soo about buying the land at appraised value, which would be determined in the future. We believe that the appraisal would come in between $'4,500 and $6,Q00 ' per dc��, far a t�tal l�nd cost of $4{�,�:�� ta �54, t7t�0. zn addition, the estimated cost of relocating the spur. is $173,000, per CP/Soo's letter to you dated September 3, 1992. As discussed in our letter of September 9, 1993, the best case in terms of total cost would be a land swap, which could limit the cost of relocating the spur to the actual costs of relocating the track. Finally, we are planning on building a 900-foot paved walkway at a cost of $7,500. Currently, we are eonsidering the location of the walk to be from our site to the sidewalk at the railroad tracks, on the Gr�ef Brothers easement,' along the south side` of 145th Street. However, other locations for the walk may be considered. If there are further questions, please do not hesitate to contact me. Sincerel , � Matt Ebner - cc: Wayne Delfino 10/14/93 12:14 FAX 612 22� 3002 SFRINGSTED INC. C�001/OOa SRRIN�sTEa RUeLIC �tNANCE�1GVIS�RS 85 East S�ver►th Plaoe, Suite 100 Saint Paul, MN ��101-2143 (s12} ��-�o�a (s12} 223-3on2 (Fax) October 14, 1993 7EI.ECC�PY I�IFt3RMATIC?N We are sending 3 pages, incfuding this cover page. if you do not receive all of these pages, ple�se call (612) 223-30�0 for assistance. Thank you. Ta: Gitv of Rosemount — Atterrtian: .]ohn Mifier Fayr a4�: (612j 423-5203 Phnne#: _�6121 423-44y 1 To: Atterrtian: ��x#: Phone#: To: Attentian: Fax�. Phone#: _ From: Mark Winkelhake Phon�#': (6121223-3077 Sufqject: CMC Meartland Ana{vsis Notes: Ctl�nt Number: Ro70�+ (J3} Origlnat Material Will. Ba sent via same-day courie� � Be sent via c►vernight deiivery � Be sent by r�gufar maii X Not be s�nt RC WP AUTH 14/14/93 12:11 F�X 612 22� 3002 SPRINGSTED INC. [�002/003 �ity of Fio�emount, Minnesota CMC Heartisnd Anaiysis Assumptions 7ype of Tax Increment�inancing District: Pre-8/79 Dist�iot Maximum Duration af TIF pistrict: a4/01/2UtJ1 Certfication Date of 71F District Pre�-8(79 Decerti�ication Date ofTIF C7is#rict 04J01/200i C7riginat Net 7ax Capacity $�,5�a (�stimat�) 1995/i 996 1996Ji 997 1997J1998 Total Estimated M$rket Value{1j $6,�t65,000 $17,5�t3,000 $28,93�,OOQ 7imes: Residentia! Hom�stead Ciass. Fiates (2) Varir�us Various Various Tota1 tVet T�x C�pacity $100,80� �274,0�0 $447,300 1998/1899 1999/2�00 Total Estimated Market Vafue (i) $40,32�f,OD� $51,705,oU0 Times: Residential Homestead Class. Rates (2) Various Various Tota) Nat Tax Gapacity $62D,55b $793,800 Fiscat Disparities Cont�ik�uticn �,�0�% Parcent vf Captured Tax Capacity Retai�ed 1 t�0.+D0% Tax Capacity Rate 120,259p/o (1982/1993) Administrative �xpense Percentag� (maximum = 104/6) 10.00°.6 (1} Constxuction sehedule: 1994 — 45 single—family homes �i $�{37,OU0�MV/home. 1 S95 — 45 single—family hames �$137,�0 EMV/home and 45 clus#er hom�s� $116,00a EM�/r��me. 1996 — A�5 single�famlly homes Q$137,U00�MV/home and 45 cluster homes @ $116,000 EMV/home. 199T — 45 sin�la—i�mily homes (c�$137,000�MV/home and 45 cluster homes @ $i 16,0(30�MVihome. 1998 — 4�6 singie—familyhomes l� $137,�0 EMV/home and 45 cluster home�@ $118,OOC1�MV/home. Nats: �0.ctual EMV/home wiil prohably incre�se over tlm�, t'esulting ltt an Itl�rease in tr�tal tax caps�city. {2j Cls�ss 1a propetty 1993/94 property classific�ttion rates of 1.Q°/Q on fi�st�'�2,QOQ,2.0%on next$�43,Ob0, and 3.t!%an axcess. Prapared by: SPRINGS7ED, tnc. ( 14—�c#-93 12:04:1 fij F,IUSERS�MAFtK1TIF1A0SEMNT\R�SEIPJC2.WK1 � City of Rasemau�l, Mir�nesata � CMC Heastland Analysis � � � Project�d Ta�c Incremert Report ,� N Less: Less: Retained Times: Less: � Annual Total C}ri�inal Fiscai Ca�pturec� Tax f4nnual ,4dmin. Annual ,� Perivd Net Tax N�t Tax Dispa�ities� Net Tax Capacirty C�oss Tax Expense 1Vet Tax � Ending Capacity �apac'rty 0.{�OflO% Capacily Rate Incr+emeni i�.aU°/ff Increm�nt � N � 1 �2f3�f94 9,500 9,50Q 0 0 �202�9°fa Q U i} w 2 �2/31 J�5 9,50{} 9,500 0 � 120.2�896 � a i} o 3 12�31�(96 100,8UQ 9,�0�0� � 91�3fl0 12't}}.25�96 1�9,796 ��,984 96,816 � 4 12J31 J97 274,O�fl 9,� 0 2G�,�50� 12{}.25996 �18,�45 31,61� 286,33� 5 121311�$ 44?',30{} 9,50a 0 437,8�0 �20�.259�5 5�fi,494 5�,643 473,64� 6 1213i1� f2{},550 �,5a0 0 fi1�,0� 120,2�99�G 734,643 73,484 661,359 ? 12f311�00[} 79�,80� 9,5�0 0 764,340 120.2��96 ��f3,191 94,319� 845,672 8 12�'31�+2�D1 793,8[?D 79�3,840 4 D 1�f?.2�9b 0 U � G � b $2,�32,469 $26�,247 �,389,�22 � z � � H t�1 C7 r-i � ['� � 0 0 . � . . � . : � C.� Prepared by: S�'RiN�STED, (nc. ��4—{}ct-93 12:C�4.'!�} F:�l1SERSIMARKITIFtRC3S�I�N'�ROSEIN�2.WK� o W