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HomeMy WebLinkAbout4.b. Downtown Redevelopment Project TIF District Discussion EXECUTIVE SUMMARY Port Authority Meeting Date: November 19, 2019 AGENDA ITEM: Downtown Redevelopment Project TIF District Discussion AGENDA SECTION: Old Business PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 4.b. ATTACHMENTS: PowerPoint, TIF District Plan Draft APPROVED BY: LJM RECOMMENDED ACTION: Information Item BACKGROUND As the Commission is aware, staff has been working with representatives from Ron Clark Construction to redevelop the KenRose and Shenanigans properties. The developer is working on land acquisition, environmental assessment, and site planning issues. The City has been working with Rebecca Kurtz of Ehlers to assist in potential public financial assistance to facilitate the redevelopment project. Similar to other redevelopment projects in the Downtown area, it is recognized that redevelopment is more expensive than greenfield development. With redevelopment, there are additional costs to purchase a structure and perhaps existing business, which prompts higher acquisition costs as compared to a vacant greenfield. In this instance, the City recognizes that the project could not move forward without some public assistance. At the November meeting, Ms. Kurtz will be discussing the draft TIF Plan, reviewing the necessary elements of the Plan including the financing information. Final financial information is currently not available; however, staff continues to meet with the developer to discuss budge and funding strategies. When the item is before the Port Authority in subsequent meetings, the Plan will reflect the anticipated revenues and expenditures for the specific TIF district. The current discussion provides some framework to anticipated revenues and expenditures. CONCLUSION & RECOMMENDATION The last time the City approved a TIF District was in 2004 when the City modified the Redevelopment Plan for the Rosemount Redevelopment Project and established the Downtown-Brockway Tax Increment Financing District. In November 2013, the Redevelopment Plan and TIF District were modified to include some parcels not initially included in the 2004 area. The anticipated actions will again modify the Redevelopment Plan and establish a new TIF District. This item is for information only. At a future meeting the City Council will hold a public hearing on the Plan and ultimately both the Port Authority and City Council will be asked to consider approval of the document. 11/11/2019 1 Overview of the KenRose TIF District Rebecca Kurtz – Ehlers Defined within Minnesota Statutes 469.174 – 469.1794 Working definition of Tax Increment Financing (TIF): The ability to capture and use most of the increased local property tax revenues from new development within a defined geographic area for a defined period of time without approval of the other taxing jurisdictions. What is TIF? 11/11/2019 2 TIF is only generated after a development adds value to a property TIF is not an exemption from paying property taxes; the project must still pay property taxes Requires adopting a Project Area Plan and a TIF Plan After a project is complete and paying property taxes, the TIF can be used to reimburse qualified costs (“TIF Obligation”) Tax Increment Financing Basics Modification to the Redevelopment Plan Rosemount Redevelopment Project No. 1 was established Modification recognizes the establishment of the KenRose TIF District in the Project Area 11/11/2019 3 TIF Plan must include the following: Project policy objectives Property included in the project Maximum duration for the TIF district Original tax capacity and estimated captured tax capacity Maximum budget authority for TIF revenues and expenses Fiscal disparities election Anticipated impacts to taxing jurisdictions TIF Plan for the KenRose TIF District Outlines the Port Authority’s authority to establish a TIF District Provides a statement of objectives for the project Development of 124 units of market rate rental housing and 4,000 square feet of retail space Summarizes the actions the City or Port are authorized to undertake StatutoryAuthority, Objectives & Redevelopment Plan Overview 11/11/2019 4 Lists all parcels included in TIF District and provides the authority for the City or Port to acquire any parcel Property in District Verifies the District is a redevelopment district. Parcels consisting of 70% of area must be improved More than 50% of buildings must be substandard 90% of TIF must be used to correct redevelopment issues Classification of the District 11/11/2019 5 Sets maximum term of 26 years for the redevelopment District First year of increment is 2022 Assumes built in 2020 Partial increase in market value in 2021 Taxes payable / first increment in 2022 Maximum term is 2047 Duration and First Year Original Tax Capacity There is a starting property value in the TIF District when it is created (“base value”) Original Tax Capacity = 18,530 Tax revenues currently funding local units of government 11/11/2019 6 Building Blocks of TIF Original Tax Capacity = 18,530 New development increases the total Tax Capacity = 267,890* Original tax revenues continue to go to local units of government *Project details are being refined, so numbers are subject to change prior to the public hearing. Building Blocks of TIF Original Tax Capacity = 18,530 New Tax Capacity = 267,890* Original Tax Capacity = 18,530 *Project details are being refined, so numbers are subject to change prior to the public hearing. “Captured” Tax Capacity (increase) = 246,286 Captured Tax Capacity x Tax Rate = Annual TIF 246,286 x 89.581% = $220,625* 11/11/2019 7 Provides original net tax capacity and the estimated captured net tax capacity at project completion Tax Capacity and Tax Rate Note: Tax capacity includes a 3.0% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $186,000. Identifies the maximum amount of debt to be issued Sources and Uses Maximum principal 11/11/2019 8 Identifies Fiscal Disparities election B Fiscal disparities will be taken from inside the District / the commercial development will pay its share of fiscal parities Fiscal Disparities Estimates impacts on police, fire and infrastructure along with County and School District Estimated Impacts 11/11/2019 9 Provides reference to the Findings the City must make prior to establishment of the District and support for those Findings Identifies who is responsible for administering the District. Supporting Documentation and Administration Map showing Redevelopment Project No. 1 and the KenRose TIF District Estimated cashflow for the development Findings the Council will need to make after the public hearing Report of Inspection Procedures and Results for Determining Qualifications of a Redevelopment TIF District Appendix 11/11/2019 10 Next Steps County and School District receive a draft TIF Plan Public hearing notice is published Planning Commission reviews TIF Plan to determine conformity with the City’s general plan for development Next Steps Port Authority considers removal of a parcel from the Downtown-Brockway TIF District and approval of the KenRose TIF Plan City Council holds public hearing and considers approval of the TIF Plan Port Authority considers approval of an Agreement 11/11/2019 11 Rebecca Kurtz Ehlers (651) 697-8516 rkurtz@ehlers-inc.com DRAFT FOR REVIEW AND DISCUSSION MODIFICATION TO THE REDEVELOPMENT PLAN Rosemount Redevelopment Project No. 1 - AND - TAX INCREMENT FINANCING PLAN Establishment of the KenRose Tax Increment Financing District (a redevelopment district) Rosemount Port Authority City of Rosemount, Dakota County, Minnesota Public Hearing: January 21, 2020 tentatively Rosemount Port Authority KenRose Tax Increment Financing District 2 Table of Contents Modification to the Redevelopment Plan for Redevelopment Project No. 1 ................................ 3 Foreword ................................................................................................................................ 3 Tax Increment Financing Plan for the KenRose Tax Increment Financing District ...................... 4 Foreword ................................................................................................................................ 4 Statutory Authority .................................................................................................................. 4 Statement of Objectives ......................................................................................................... 4 Redevelopment Plan Overview .............................................................................................. 4 Description of Property in the District and Property to be Acquired......................................... 5 Classification of the District .................................................................................................... 5 Duration and First Year of Tax Increment of the District ......................................................... 6 Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ..................................................................... 6 Sources of Revenue/Bonds to be Issued ............................................................................... 7 Uses of Funds ........................................................................................................................ 8 Estimated Impact on Other Taxing Jurisdictions ..................................................................... 9 Supporting Documentation ....................................................................................................10 Administration of the District ..................................................................................................11 Appendix A: Map of Redevelopment Project No. 1 and the TIF District ................................12 Appendix B: Estimated Cash Flow for the District .................................................................13 Appendix C: Findings Including But/For Qualifications .........................................................14 Appendix D: Redevelopment Qualifications for the District ...................................................16 Rosemount Port Authority KenRose Tax Increment Financing District 3 Modification to the Redevelopment Plan for Rosemount Redevelopment Project No. 1 Foreword The following text represents a Modification to the Redevelopment Plan for Rosemount Redevelopment Project No. 1. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Rosemount Redevelopment Project No. 1, adopted May 1, 1979. Generally, the substantive changes include the establishment of the KenRose Tax Increment Financing District. For further information, a review of the Redevelopment Plan for Rosemount Redevelopment Project No. 1, is recommended. It is available from the Community Development Director at the City of Rosemount. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Rosemount Redevelopment Project No. 1. Rosemount Port Authority KenRose Tax Increment Financing District 4 Tax Increment Financing Plan for the KenRose Tax Increment Financing District Foreword The Rosemount Port Authority (the "Port Authority"), the City of Rosemount (the "City"), staff and consultants have prepared the following information to expedite the establishment of the KenRose Tax Increment Financing District (the "District"), a redevelopment tax increment financing district, located in Rosemount Redevelopment Project No. 1. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the Port Authority and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.048 - 469.068, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Rosemount Redevelopment Project No. 1. Statement of Objectives The District currently consists of 12 parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate the development of approximately 124 units of market rate, rental housing and approximately 4,000 square feet of retail in the City. The Port Authority has not entered into an agreement or designated a developer at the time of preparation of this TIF Plan but anticipates entering into an agreement with RonClark Construction & Design. Development is likely to begin in 2020. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Redevelopment Project No. 1. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Rosemount Redevelopment Project No. 1 and the District. Redevelopment Plan Overview Pursuant to the Redevelopment Plan and authorizing state statutes, the Port Authority or City is authorized to undertake the following activities in the District: 1. Property to be Acquired - Selected property located within the District may be acquired by the Port Authority or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. Rosemount Port Authority KenRose Tax Increment Financing District 5 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the Port Authority or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The Port Authority or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Description of Property in the District and Property to be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Please also see the map in Appendix A for further information on the location of the District. Classification of the District The Port Authority and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1). $ The District is a redevelopment district consisting of 12 parcels. $ An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. $ An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix D). Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request Parcel number Address Owner 34.03700.34.010 NA E&E Enterprises 34.03700.47.010 NA E&E Enterprises 34.03700.48.010 14555 Robert Tr S E&E Enterprises 34.03700.48.020 NA E&E Enterprises 34.03700.49.010 NA E&E Enterprises 34.03700.50.010 14555 Robert Tr S E&E Enterprises 34.03700.51.010 NA E&E Enterprises 34.03700.52.010 NA E&E Enterprises 34.03700.53.010 NA E&E Enterprises 34.03700.61.040 NA E&E Enterprises 34.03700.54.010 14605 Robert Tr S Shenanigans 34.03700.61.052 NA Shenanigans Rosemount Port Authority KenRose Tax Increment Financing District 6 for certification of the District. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first increment by the Port Authority or City (a total of 26 years of tax increment). The Port Authority or City elects to receive the first tax increment in 2022, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2047, or when the TIF Plan is satisfied. The Port Authority or City reserves the right to decertify the District prior to the legally required date. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2019 for taxes payable 2020. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2021) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured, and no tax increment will be payable to the Port Authority or City. The original local tax rate for the District will be the local tax rate for taxes payable 2020, assuming the request for certification is made before June 30, 2020. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The Port Authority and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2022. The Project Tax Capacity (PTC) listed is an estimate of Rosemount Port Authority KenRose Tax Increment Financing District 7 values when the projects within the District are completed. Note: Tax capacity includes a 3.0% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $186,000. Pursuant to M.S., Section 469.177, Subd. 4, the Port Authority shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City reviewed the area to be included in the District and determined no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are shown in the table below: The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The Port Authority or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by pay-as-you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the Port Authority or City to incur debt. The Port Authority or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The Port Authority or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $5,174,212. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or Project estimated Tax Capacity upon completion $528,704 Original estimated Net Tax Capacity $18,530 Fiscal Disparities $7,700 Estimated Captured Tax Capacity $502,474 Original Local Tax Rate 89.5810%Pay 2019 Estimated Annual Tax Increment $450,121 Percent Retainted by the City 100% Project Tax Capacity SOURCES Tax Increment 8,077,865 Interest 807,786 TOTAL 8,885,651 Rosemount Port Authority KenRose Tax Increment Financing District 8 interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Uses of Funds Currently under consideration for the District is a proposal to facilitate the development of 120 units of market rate, rental housing and approximately 4,000 square feet of retail. The Port Authority and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The Port Authority has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Redevelopment Project No. 1, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the Port Authority or City may elect one of two methods to calculate fiscal disparities. The Port Authority will choose to calculate fiscal disparities by clause b (inside). USES Land/Building Acquisition 1,500,000 Site Improvements/Preparation 1,500,000 Utilities 1,000,000 Other Qualifying Improvements 366,426 Administrative Costs (up to 10%)807,786 PROJECT COSTS TOTAL 5,174,212 Interest 3,711,439 PROJECT AND INTEREST COSTS TOTAL 8,885,651 Rosemount Port Authority KenRose Tax Increment Financing District 9 Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the Port Authority or 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 estimated fiscal impact of the District would be as follows if the "but for" test was not met: The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the Pay 2019 rate. The total net capacity for the entities listed above are based on Pay 2019 figures. The District will be certified under the Pay 2020 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $8,077,865; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect the impact to be significant, and it does not anticipate the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The probable impact of the District on fire protection is not expected to be significant. Entity 2018/Pay 2019 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) upon completion Percent of CTC to Entity Total Dakota County 491,799,021 502,474 0.1022% City of Rosemount 27,989,372 502,474 1.7952% ISD # 196 181,878,931 502,474 0.2763% Impact on Tax Base Entity Pay 2019 Extension Rate Percent of Total CTC Potential Taxes Dakota County 39.3550%43.93%502,474 197,749 City of Rosemount 25.3860%28.34%502,474 127,558 ISD # 196 20.6130%23.01%502,474 103,575 Other 4.2270%4.72%502,474 21,240 Total 89.5810%100.00%450,121 Impact on Tax Rates Rosemount Port Authority KenRose Tax Increment Financing District 10 Typically, new buildings generate few calls, if any, and are of superior construction. The existing buildings, which will be eliminated by the new development, have public safety concerns that will be eliminated with the new development. These concerns include the current building not having a sprinkler system or alarm system; and the new buildings will have both. In addition, emergency response time will improve due to remote monitoring; and with the new development, ADA requirements will be met throughout the site. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. Finally, the new development will allow for improved fire department access and egress routes. The impact of the District on public infrastructure is expected to be minimal. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The current infrastructure for storm sewer and water will be able to handle the additional volume generated from the proposed development. Improvements will be needed to address sanitary sewer needs for the site. It is anticipated that the developer and tax increment will pay for the needed improvements. The development in the District is expected to contribute an estimated $437,400 in sanitary sewer (SAC) and $17,290 in water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,858,754; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $3,548,792; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section Rosemount Port Authority KenRose Tax Increment Financing District 11 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. (i) In making said determination, reliance has been placed upon (1) written representation made by the developer to such effects; and (2) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the city council resolution approving the establishment of the TIF District and Appendix C. (ii) A comparative analysis of estimated market value both with and without establishment of the TIF District and the use of tax increments has been performed. Such analysis is included with the cashflow in Appendix B and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. Administration of the District Administration of the District will be handled by the Community Development Director. Rosemount Port Authority KenRose Tax Increment Financing District 12 Appendix A: Map of Redevelopment Project No. 1 and the TIF District CRYSTAL PATH 152ND ST W BO U L D E R T R L BELFAST ST W DAFFO D ILPATH140TH ST W UPPER 143RD ST W CANADAAVEDANBURY CTAUT U M N PATHCHERRY PATHS ROBERT TRL (STH 3)BITTERSWEET CTBLO O MFIELDWAYAUDOBON W A Y A U G U STAWAY CRANFORD CI R CRUSHE E N C T CROSSRIDGE WAY CROSSGL ENPATH150TH ST W (CSAH 42) 147TH ST WCONNEMARA TRBACARDI AVE153RD ST W 151ST ST W BRAZIL AVE156TH ST W UPPER 148TH ST WDAHOMEY AVE W149TH ST W UPPER 149TH ST WCRESTVIEW AVE152ND CT W B ELM ONTCT COLUMBIAWAYLOWER 150TH ST W BAYBERRYC T SROBERT TRL(STH3)133RD CT W C R O S S L O U G H T R L LOWER 138TH ST W CIN N A M ONWAYCRESTONE AVED A NBURYPATHC R O S S C L IF F E PATH AURORA AVEATWAT E R PATHDANDE R C T CROCUSAVECAMBRIAN AVE158TH ST W 148TH ST W 142ND ST W 138TH ST W COVINGTON AVEBUNRATTY AVEBEECH ST WCROMPTON AVEBE N T LEYWAYAT W O O D T R L C ARROUSELWAYUPPER 147TH ST WDANNER PATHBAYBE R R Y TRL CARDINAL ST W LOWER 147TH ST WDAWSON C T DAHLIACT CASCADE PATH D AM A S K C T S ROBERT TRL (STH 3)S ROBERT TRL (STH 3)BISCAYNE AVEBIRDSONGCTDANE AVEBURMA AVEUPPER 138TH ST W B ISCAYNEWAYCO B ALTAVE COLORADO AVECOUCHTOWN PATH BUSINESS PKYDELLWOODWAYBRIANBORU AVEBIR C H S T W CANADACIRCAMERO LNCORNELL TRL W 144TH ST W 155TH ST W CHILI AVE147TH ST W 146TH ST W 143RD ST W BRASSPKW Y BONAIRE PATH W COBBLER AVEBIRCHWOOD AVEBLOOMFIELD P A T H CAMEO AVE148TH ST WDALLARA AVE W132ND ST W BELMONT TR137TH ST W BLANCA AVEAZALEA AVECLARET AVECRANDALL AVEAZALEA PAT H 138TH ST W B O U L D E R AVECIMARRON AVE WAV ALO NPATH BOXWOOD PATHCHIANTI AVEAUTUMNCTBANYAN LNCR O M W E L L TRCRUMPETPATHDAISY CT154TH CT W DALTONLN C H ILIC T C L A R E D O W N S P A THA U T U M N WOODAVE CIMARRONAVEBUSINESSPKWYBAYBERRY CIR BURNLEY AVECROM PTONCT BOYSENBERRY CTCHROMEAVEDANUBECIR CLAREDOWNS W A YCROMWEL L A V E CROSSC LIF F E P L COLUM B I A CTBURGUNDYCTBURMA AVEBURNLEY WAYC R O SS MO OR AV E S CROSSCROFTPLC ARB A C H WAY134TH ST W CARLINGFORDLANECARLINGFORDWAY CHRYSLER AVEBRICK PATH151ST CT WCANTATA AVE WCHORLEYAVEWCAMFIELD CIR137THCTWCHARLSTON AVEBIRDSONG PATH COLESHIRE PATH 151ST ST W BIRCHWOODAVESROBERTTRL(STH3)145TH ST W 145TH ST W 145TH ST W 145TH ST W CRY S T A L PATH154THSTW 153RD ST W C IM ARRONCTCRESTVIEW CIR CIMARRONAVEWCORMORANTWAY 143RD ST W UPPER 14 3 R D S T W 144TH ST W WA Y CROC U S W A Y CLOVER L NCOBBLER A V E CROS SCROFTAVE CICERONECTBUNDORAN AVEA U T U MNWOODCTBURGUNDYAVECIRCLEAVEC O P PERCTB L U E B E R R Y C T 141ST CT W CROCUSCT CARDINALCT COUCHTOWNAVEAZ A L E ACTDERBYCIR146TH ST W LOWER 147TH ST W CHILI AVE143RD ST W BIRC H S T W CLARET AVECICERONEPATHCRESTONE CTCHASEWOODCOURTCHESTNUTWAY BRASSPKWY1 3 6 T H S T W CORMA C K C IR BROUGHSHANEAVEC R E GGS C IR DARWINWAYDAKOTALNBLACKBERRY WAY CICERONEPATHCHOKECHERRY AVEDALLARA AVE WU. 149THCTCHEVELLECT NBRENNER CT BOSTONCIRBOISE CIR143RD ST WC R O F T O N C T CRESCENT CIRBIRMINGHAMCT BELVIDERE CTDELLWOODCT C LARET C IR 137th ST W 136th ST W BRONZE CTCRESTONECIRC R ANBERR Y CROSSMOORAVE153RD ST W 143RD ST W CANADA AVE148TH ST W CHIPPENDALE AVE147TH ST W UPPER 149THSTW 136TH ST W 154TH ST W 149TH ST W 151ST ST W 146TH ST WDODD BLV D 144THSTW CIMARRONAVEWUPPER 149TH ST W PRIVATE RDUPPER 149TH ST W 147TH ST W CIMARRONAVEWTR CIMARRON WAY CORLISS COUCHTOWNCORCORANAVECORCHMANAVECOUCHFORDAVECRUMFIELDPA T H CLA R EDOW NSW A Y CI MM A R O N AV E CHERRY P A T HCOLUMBARY CTCORNELLCT SCRYSTAL CTCARDINAL CIRCHIPPENDALE AVECHIPPENDALE AVECOLUMBARY CIRCHOKECHERRY AVE1 3 3 R D S T W BROCKWAYAVEBRILL IANTGEM AVE 1 3 5 T H S T W BLANCA CTBLARNE YCT BLANCAAVE139TH ST W COUCHT O W N CT CUR R A N T C I R SHANNON PKWYSHANNON PKWYSHANNONPKWYEVERM O O R PKWYE V E R MOORPKWYCONNEMARA TR CONNEMARATR CONNEMA R A T R DAWSON PL 145TH ST W CROSSCROFTAVECR OSSLOUGHTR156T H S T W 140TH ST W BREMEN AVEBROCKWAYAVEBRI CKPATHBRO N ZE PKW Y BIRNAMWOODTR BELMONT TR BELMONT TRBELFAST CT BELLE C T B L O O MFIELDPATHBLOOMFIELDPATHBISCAYNE AVECOBALT LNCOBALT DRIVE 160TH ST W (CSAH 46) BL O O M F I E L D CI R BLOOMFIELDPL BITTERSWEETCIR 150TH ST W (CSAH 42)UPPER 145TH ST W UPPER 145TH ST W C OUCHTOWNCT CA R R A C H A V E COACHFORDAVECOACHFORDWAYCARRACH AVECRESTONEPATHCORNE L L TRAIL 156TH S T W CORNELLCT ND A M ASKAVESDODD BLVDSHANNON PKWYSHANNON PKWYSHANNON PKWYSHANNON PKWYBO U L D E R CT 140TH CIR BURGUNDYWAY 139TH ST W BONAIRE PATH W CARBURY WAYBRON ZE PKWY 135TH S T W 133RD ST W 134TH ST WBUTTERFLY PATHC A R BURYAVECOACH F O RD AVE D ODDBLVDL 147TH CT W CARLIN GFORDLANE149TH ST W AYREFIELDCI RBURGUNDY AVECAFFREY AVE137TH ST W BROOK PATHBROOKVIEWPATHBROOKSTONEPATHBROOKSIDE PATHU±XX ?§A@ SchwarzPond Park Connemara Park Biscayne Park Camfield Park Kidder Park Twin Puddles WindsPark Chippendale Park Shannon Park Dallara Park JayceePark Charlie's Park CarrollsWoods Park Erickson Park Claret Park Birch Park Central Park BrockwayPark MeadowsPark BloomfieldPark HorseshoePark Rosemount Redevelopment Project Area Document Path: T:\Project\CommDev\Downtown\DowntownRedevelopment.mxd KenRose TIF District Rosemount Redevelopment Project Area KenRose TIF District Rosemount Port Authority KenRose Tax Increment Financing District 13 Appendix B: Estimated Cash Flow for the District 11/11/2019 Base Value Assumptions - Page 1 KenRose TIF District - 3% Inflation and Apartment market value at $160,000/unit City of Rosemount, MN 124 units of market rental and 4,000 SF of retail ASSUMPTIONS AND RATES DistrictType:Redevelopment District Name/Number:KenRose TIF County District #:TBD Exempt Class Rate (Exempt)0.00% First Year Construction or Inflation on Value 2020 Commercial Industrial Preferred Class Rate (C/I Pref.) Existing District - Specify No. Years Remaining First $150,000 1.50% Inflation Rate - Every Year:3.00%Over $150,000 2.00% Interest Rate:4.50%Commercial Industrial Class Rate (C/I)2.00% Present Value Date:1-Feb-21 Rental Housing Class Rate (Rental)1.25% First Period Ending 1-Aug-21 Affordable Rental Housing Class Rate (Aff. Rental) Tax Year District was Certified:Pay 2020 First $150,000 0.75% Cashflow Assumes First Tax Increment For Development:2022 Over $150,000 0.25% Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit) Assumes Last Year of Tax Increment 2047 First $500,000 1.00% Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25% Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.) Fiscal Disparities Contribution Ratio 36.0740%Pay 2019 First $500,000 1.00% Fiscal Disparities Metro-Wide Tax Rate 143.9920%Pay 2019 Over $500,000 1.25% Maximum/Frozen Local Tax Rate: 89.581%Pay 2019 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)89.581%Pay 2019 State-wide Tax Rate (Comm./Ind. only used for total taxes)42.4160%Pay 2019 Market Value Tax Rate (Used for total taxes)0.26162%Pay 2019 Building Total Percentage Tax Year Property Current Class After Land Market Market Of Value Used Original Original Tax Original After Conversion Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap. 1 34.03700.34.010 E&E Enterprises NA 45,400 10,600 56,000 100%56,000 Pay 2020 C/I Pref.840 Rental 700 1 2 34.03700.47.010 E&E Enterprises NA 46,100 32,900 79,000 100%79,000 Pay 2020 C/I 1,580 Rental 988 1 3 34.03700.48.010 E&E Enterprises 14555 Robert Tr S 92,300 8,400 100,700 100%100,700 Pay 2020 C/I 2,014 Rental 1,259 1 4 34.03700.48.020 E&E Enterprises NA 53,600 6,800 60,400 100%60,400 Pay 2020 C/I 1,208 Rental 755 1 5 34.03700.49.010 E&E Enterprises NA 26,900 85,300 112,200 100%112,200 Pay 2020 C/I 2,244 C/I Pref.1,683 1 6 34.03700.50.010 E&E Enterprises 14555 Robert Tr S 26,800 85,400 112,200 100%112,200 Pay 2020 C/I 2,244 C/I 2,244 1 7 34.03700.51.010 E&E Enterprises NA 45,400 10,600 56,000 100%56,000 Pay 2020 C/I 1,120 Rental 700 1 8 34.03700.52.010 E&E Enterprises NA 45,400 10,600 56,000 100%56,000 Pay 2020 C/I 1,120 Rental 700 1 9 34.03700.53.010 E&E Enterprises NA 12,400 2,900 15,300 100%15,300 Pay 2020 C/I 306 Rental 191 1 10 34.03700.61.040 E&E Enterprises NA 58,400 18,800 77,200 100%77,200 Pay 2020 C/I 1,544 Rental 965 1 11 34.03700.54.010 Shenanigans 14605 Robert Tr S 118,000 418,600 536,600 100%536,600 Pay 2020 C/I Pref.9,982 Rental 6,708 1 12 34.03700.61.052 Shenanigans NA 112,700 18,300 131,000 100%131,000 Pay 2020 C/I 2,620 Rental 1,638 1 683,400 709,200 1,392,600 1,392,600 26,822 18,530 Note: 1. Base values are for pay 2020 based upon review of County website on April 23, 2019. 2. ISD# 196; Watershed: Vermillion River. Area/ Phase Tax Rates BASE VALUE INFORMATION (Original Tax Capacity) Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Rosemount\Housing - Economic - Redevelopment\TIF\TIF Districts\KenRose TIF - est 2019\TIF Runs\2019\TIF 11.11.2019 - 3.0 inflation and 160K - TIF PLAN 11/11/2019 Base Value Assumptions - Page 2 KenRose TIF District - 3% Inflation and Apartment market value at $160,000/unit City of Rosemount, MN 124 units of market rental and 4,000 SF of retail Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2020 2021 2022 2023 Payable 1 Apt 160,000 160,000 124 19,840,000 Rental 248,000 2,000 75%100%100%100%2023 Retail 165 165 4,000 660,000 C/I Pref.12,450 3 0%0%100%100%2024TOTAL20,500,000 260,450 Subtotal Residential 124 19,840,000 248,000 Subtotal Commercial/Ind.4,000 660,000 12,450 Note: 1. Market values are based upon estimates from the Developer dated 11.8.2019. Total Fiscal Local Local Fiscal State-wide Market Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit Apt 248,000 0 248,000 222,161 0 0 51,905 274,066 2,210.21 Retail 12,450 4,491 7,959 7,130 6,467 4,645 1,727 19,968 4.99TOTAL260,450 4,491 255,959 229,290 6,467 4,645 53,632 294,034 Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted. Total Property Taxes 294,034 Current Market Value - Est.1,392,600 less State-wide Taxes (4,645)New Market Value - Est.20,500,000less Fiscal Disp. Adj.(6,467) Difference 19,107,400 less Market Value Taxes (53,632)Present Value of Tax Increment 4,181,013less Base Value Taxes (15,330) Difference 14,926,387 Annual Gross TIF 213,961 Value likely to occur without Tax Increment is less than:14,926,387 WHAT IS EXCLUDED FROM TIF?MARKET VALUE BUT / FOR ANALYSIS TAX CALCULATIONS PROJECT INFORMATION (Project Tax Capacity) Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Rosemount\Housing - Economic - Redevelopment\TIF\TIF Districts\KenRose TIF - est 2019\TIF Runs\2019\TIF 11.11.2019 - 3.0 inflation and 160K - TIF PLAN 11/11/2019 Tax Increment Cashflow - Page 3 KenRose TIF District - 3% Inflation and Apartment market value at $160,000/unit City of Rosemount, MN 124 units of market rental and 4,000 SF of retail TAX INCREMENT CASH FLOW Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD % of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date - - - - 08/01/21 - - - - 02/01/22 100%186,000 (18,530) - 167,471 89.581%150,022 75,011 (270) (7,474) 67,267 62,923 0.5 2022 08/01/22 100%186,000 (18,530) - 167,471 89.581%150,022 75,011 (270) (7,474) 67,267 124,462 1 2022 02/01/23 100%248,000 (18,530) - 229,471 89.581%205,562 102,781 (370) (10,241) 92,170 206,927 1.5 2023 08/01/23 100%248,000 (18,530) - 229,471 89.581%205,562 102,781 (370) (10,241) 92,170 287,578 2 2023 02/01/24 100%267,890 (18,530) (3,075) 246,286 89.581%220,625 110,313 (397) (10,992) 98,924 372,234 2.5 2024 08/01/24 100%267,890 (18,530) (3,075) 246,286 89.581%220,625 110,313 (397) (10,992) 98,924 455,028 3 2024 02/01/25 100%275,927 (18,530) (3,209) 254,188 89.581%227,704 113,852 (410) (11,344) 102,098 538,597 3.5 2025 08/01/25 100%275,927 (18,530) (3,209) 254,188 89.581%227,704 113,852 (410) (11,344) 102,098 620,327 4 2025 02/01/26 100%284,205 (18,530) (3,484) 262,191 89.581%234,873 117,437 (423) (11,701) 105,312 702,776 4.5 2026 08/01/26 100%284,205 (18,530) (3,484) 262,191 89.581%234,873 117,437 (423) (11,701) 105,312 783,410 5 2026 02/01/27 100%292,731 (18,530) (3,631) 270,570 89.581%242,379 121,190 (436) (12,075) 108,678 864,790 5.5 2027 08/01/27 100%292,731 (18,530) (3,631) 270,570 89.581%242,379 121,190 (436) (12,075) 108,678 944,380 6 2027 02/01/28 100%301,513 (18,530) (3,783) 279,200 89.581%250,110 125,055 (450) (12,461) 112,145 1,024,701 6.5 2028 08/01/28 100%301,513 (18,530) (3,783) 279,200 89.581%250,110 125,055 (450) (12,461) 112,145 1,103,254 7 2028 02/01/29 100%310,558 (18,530) (3,939) 288,090 89.581%258,074 129,037 (465) (12,857) 115,715 1,182,525 7.5 2029 08/01/29 100%310,558 (18,530) (3,939) 288,090 89.581%258,074 129,037 (465) (12,857) 115,715 1,260,051 8 2029 02/01/30 100%319,875 (18,530) (4,099) 297,246 89.581%266,276 133,138 (479) (13,266) 119,393 1,338,282 8.5 2030 08/01/30 100%319,875 (18,530) (4,099) 297,246 89.581%266,276 133,138 (479) (13,266) 119,393 1,414,791 9 2030 02/01/31 100%329,471 (18,530) (4,265) 306,677 89.581%274,724 137,362 (495) (13,687) 123,181 1,491,990 9.5 2031 08/01/31 100%329,471 (18,530) (4,265) 306,677 89.581%274,724 137,362 (495) (13,687) 123,181 1,567,490 10 2031 02/01/32 100%339,355 (18,530) (4,435) 316,390 89.581%283,426 141,713 (510) (14,120) 127,082 1,643,668 10.5 2032 08/01/32 100%339,355 (18,530) (4,435) 316,390 89.581%283,426 141,713 (510) (14,120) 127,082 1,718,170 11 2032 02/01/33 100%349,536 (18,530) (4,611) 326,395 89.581%292,388 146,194 (526) (14,567) 131,101 1,793,336 11.5 2033 08/01/33 100%349,536 (18,530) (4,611) 326,395 89.581%292,388 146,194 (526) (14,567) 131,101 1,866,848 12 2033 02/01/34 100%360,022 (18,530) (4,792) 336,701 89.581%301,620 150,810 (543) (15,027) 135,240 1,941,013 12.5 2034 08/01/34 100%360,022 (18,530) (4,792) 336,701 89.581%301,620 150,810 (543) (15,027) 135,240 2,013,546 13 2034 02/01/35 100%370,822 (18,530) (4,978) 347,315 89.581%311,128 155,564 (560) (15,500) 139,504 2,086,718 13.5 2035 08/01/35 100%370,822 (18,530) (4,978) 347,315 89.581%311,128 155,564 (560) (15,500) 139,504 2,158,281 14 2035 02/01/36 100%381,947 (18,530) (5,170) 358,248 89.581%320,922 160,461 (578) (15,988) 143,895 2,230,472 14.5 2036 08/01/36 100%381,947 (18,530) (5,170) 358,248 89.581%320,922 160,461 (578) (15,988) 143,895 2,301,074 15 2036 02/01/37 100%393,405 (18,530) (5,367) 369,509 89.581%331,010 165,505 (596) (16,491) 148,418 2,372,294 15.5 2037 08/01/37 100%393,405 (18,530) (5,367) 369,509 89.581%331,010 165,505 (596) (16,491) 148,418 2,441,946 16 2037 02/01/38 100%405,208 (18,530) (5,571) 381,107 89.581%341,400 170,700 (615) (17,009) 153,077 2,512,203 16.5 2038 08/01/38 100%405,208 (18,530) (5,571) 381,107 89.581%341,400 170,700 (615) (17,009) 153,077 2,580,915 17 2038 02/01/39 100%417,364 (18,530) (5,780) 393,054 89.581%352,102 176,051 (634) (17,542) 157,875 2,650,221 17.5 2039 08/01/39 100%417,364 (18,530) (5,780) 393,054 89.581%352,102 176,051 (634) (17,542) 157,875 2,718,002 18 2039 02/01/40 100%429,885 (18,530) (5,996) 405,359 89.581%363,125 181,562 (654) (18,091) 162,818 2,786,367 18.5 2040 08/01/40 100%429,885 (18,530) (5,996) 405,359 89.581%363,125 181,562 (654) (18,091) 162,818 2,853,227 19 2040 02/01/41 100%442,781 (18,530) (6,219) 418,033 89.581%374,478 187,239 (674) (18,657) 167,909 2,920,661 19.5 2041 08/01/41 100%442,781 (18,530) (6,219) 418,033 89.581%374,478 187,239 (674) (18,657) 167,909 2,986,611 20 2041 02/01/42 100%456,065 (18,530) (6,448) 431,088 89.581%386,173 193,086 (695) (19,239) 173,152 3,053,124 20.5 2042 08/01/42 100%456,065 (18,530) (6,448) 431,088 89.581%386,173 193,086 (695) (19,239) 173,152 3,118,173 21 2042 02/01/43 100%469,747 (18,530) (6,684) 444,534 89.581%398,218 199,109 (717) (19,839) 178,553 3,183,775 21.5 2043 08/01/43 100%469,747 (18,530) (6,684) 444,534 89.581%398,218 199,109 (717) (19,839) 178,553 3,247,933 22 2043 02/01/44 100%483,839 (18,530) (6,927) 458,383 89.581%410,624 205,312 (739) (20,457) 184,116 3,312,635 22.5 2044 08/01/44 100%483,839 (18,530) (6,927) 458,383 89.581%410,624 205,312 (739) (20,457) 184,116 3,375,913 23 2044 02/01/45 100%498,354 (18,530) (7,177) 472,648 89.581%423,403 211,701 (762) (21,094) 189,845 3,439,724 23.5 2045 08/01/45 100%498,354 (18,530) (7,177) 472,648 89.581%423,403 211,701 (762) (21,094) 189,845 3,502,131 24 2045 02/01/46 100%513,305 (18,530) (7,435) 487,341 89.581%436,565 218,282 (786) (21,750) 195,747 3,565,062 24.5 2046 08/01/46 100%513,305 (18,530) (7,435) 487,341 89.581%436,565 218,282 (786) (21,750) 195,747 3,626,609 25 2046 02/01/47 100%528,704 (18,530) (7,700) 502,474 89.581%450,121 225,061 (810) (22,425) 201,825 3,688,670 25.5 2047 08/01/47 100%528,704 (18,530) (7,700) 502,474 89.581%450,121 225,061 (810) (22,425) 201,825 3,749,365 26 2047 02/01/48 Total 8,107,050 (29,185) (807,786) 7,270,078 Present Value From 02/01/2021 Present Value Rate 4.50%4,181,013 (15,052) (416,596) 3,749,365 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Rosemount\Housing - Economic - Redevelopment\TIF\TIF Districts\KenRose TIF - est 2019\TIF Runs\2019\TIF 11.11.2019 - 3.0 inflation and 160K - TIF PLAN Rosemount Port Authority KenRose Tax Increment Financing District 14 Appendix C: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for the KenRose Tax Increment Financing District (the “District”), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the KenRose Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of 12 parcels and vacant right-of-way, with plans to redevelop the area for approximately 124 market rate, rental units and approximately 4,000 square feet of commercial space. Parcels consisting of 70 percent of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix D of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of 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 KenRose Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by a substandard building and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a pro forma as justification that the developer would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in 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 District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and public improvements and utilities add to the total redevelopment cost. Historically, construction costs, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. Rosemount Port Authority KenRose Tax Increment Financing District 15 b. If the proposed development occurs, the total increase in market value will be $19,107,400. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $4,181,013. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $14,926,387 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission will review the TIF Plan on January 14, 2020 and determine if the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for the KenRose Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Rosemount Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high-quality development to the City. Rosemount Port Authority KenRose Tax Increment Financing District 16 Appendix D: Redevelopment Qualifications for the District To be added to prior to the public hearing