HomeMy WebLinkAbout5.b. Osprey Project TIF District
EXECUTIVE SUMMARY
Port Authority Meeting Date: May 18th, 2021
AGENDA ITEM: Approval of a Resolution Adopting a
Modification to the Development Program for Development
District No. 1.
AGENDA SECTION:
New Business
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 5.b.
ATTACHMENTS: Resolution, PowerPoint, TIF District Plan
Draft APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Approve a Resolution Adopting a Modification to
the Development Program for Development District No. 1
BACKGROUND
As the Commission is aware, staff has been working with representatives from Seefried Industrial
Properties LLC to develop an industrial logistics facility in the Business Park. 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 development
project. A unique facet of this project is the need to extend Boulder Trail to State Highway 3. The City
asserts that an additional access point to the Business Park is necessary to accommodate increased truck
traffic, as well as to facilitate future development. It is recognized that the road extension is expensive and
requires Right-of-Way (ROW) dedication of private property from the developer.
In this instance, the City recognizes that the project could not move forward without some public
assistance to construct the road extension and reimburse the developer for a portion of the ROW costs. At
the May meeting, Ms. Kurtz will be discussing the TIF Plan, and reviewing the necessary elements of the
Plan including the financing information. Staff continues to meet with the developer to discuss budget and
funding strategies. The current discussion provides framework to anticipated revenues and expenditures.
CONCLUSION & RECOMMENDATION
The last time the City approved a TIF District was in 2019, when the City modified the Downtown-
Brockway Tax Increment Financing District to the KenRose District associated with the Morrison
Development. The anticipated actions will again modify the Development Program for Development
District No. 1. This modification represents a continuation of the goals and objectives set forth in the
Development Program for Development District No. 1. Generally, the substantive changes
include the establishment of the Osprey TIF District.
Staff recommends the Port Authority approve a resolution adopting a modification to the development
program for Development District No. 1. At the May 18th meeting the City Council will hold a public
hearing on the Plan. Ultimately both the Port Authority and City Council will be asked to consider
approval of the TIF Agreement at a later date.
RS220-419-720963.v1
ROSEMOUNT PORT AUTHORITY
RESOLUTION NO. 20-______
A RESOLUTION ADOPTING A MODIFICATION TO THE
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1
Section 1. Recitals.
1.1. In 1979 the Housing and Redevelopment Authority in and for the City of
Rosemount (the “HRA”) established Development District No. 1 (the “Development District”) and
adopted a Development Program (the “Development Program”) related thereto.
1.2. The Rosemount Port Authority (the “Port Authority”) is the successor in interest to
the HRA and currently operates the Development District.
1.3. It has been proposed that the Development Program be modified (the
“Modification”) to acknowledge the establishment by the City of Rosemount (the “City”) of the
Osprey Tax Increment Financing District (the “TIF District”).
1.4. The Port Authority has reviewed the Modification, the only substantive change in
which is regarding the TIF District.
Section 2. Approval of Modification.
2.1. The Modification is hereby approved.
Section 3. Further Proceedings.
3.1. The Modification is hereby transmitted to the City with a request that the City also
approve the Modification.
The question was on the adoption of the resolution and upon a vote being taken thereon, the
following voted in favor thereof:
And the following voted against the same:
2
RS220-419-720963.v1
WHEREUPON SAID RESOLUTION WAS DECLARED DULY PASSED AND ADOPTED
THIS 18TH DAY OF MAY, 2021.
ATTEST:
MODIFICATION TO THE DEVELOPMENT
PROGRAM
Development District No. 1
- AND -
TAX INCREMENT FINANCING PLAN
Establishment of the Osprey TIF District
(an economic development district)
City of Rosemount, Dakota County, Minnesota
Public Hearing: May 18, 2021
City of Rosemount
Osprey TIF District 2
Table of Contents
Modification to the Development Program for Development District No. 1 ...................................3
Foreword .................................................................................................................................3
Tax Increment Financing Plan for the Osprey TIF 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 ....................................................................................................11
Administration of the District ..................................................................................................11
Appendix A: Map of Development District No. 1 and the TIF District ....................................12
Appendix B: Estimated Cash Flow for the District .................................................................13
Appendix C: Findings Including But/For Qualifications .........................................................14
City of Rosemount
Osprey TIF District 3
Modification to the Development Program for
Development District No. 1
Foreword
The following text represents a Modification to the Development Program for Development District
No. 1. This modification represents a continuation of the goals and objectives set forth in the
Development Program for Development District No. 1. Generally, the substantive changes
include the establishment of the Osprey TIF District.
For further information, a review of the Development Program for Development District 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 Development District No. 1.
City of Rosemount
Osprey TIF District 4
Tax Increment Financing Plan for the Osprey TIF
District
Foreword
The City of Rosemount (the "City"), staff and consultants have prepared the following information
to expedite the establishment of the Osprey TIF District (the "District"), an economic development
tax increment financing district, located in Development District 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 City has certain statutory powers pursuant to
Minnesota Statutes ("M.S."), Sections 469.124 - 469.133, 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 Distri ct. Other
relevant information is contained in the Modification to the Development Program for
Development District No. 1.
Statement of Objectives
The District currently consists of two parcels of land and adjacent and internal rights-of-way. The
District is being created to facilitate the development of an approximately 417,600 square foot
manufacturing / warehouse facility with an estimated 5 build docks and 10 flatbed docks. The
proposed development will include an estimated 235,500 square feet for outside storage, access
to rail including 10 A-frame rail cars and space for 6 box cars, and approximately 176 space for
trailer parking. The total site area is estimated at 63.65 acres.
Tax increment will be used to reimburse the City and developer for expenses related to the
construction of infrastructure for the site. Infrastructure expenses may include, but are not limited
to, land acquisition and construction of a road to access the development and other developments
in the industrial park off State Highway 3. The City has not entered into an agreement or
designated a developer at the time of preparation of this TIF Plan, but development is likely to
occur in the summer of 2021. This TIF Plan is expected to achieve many of the objectives outlined
in the Development Program for Development District No. 1.
The activities contemplated in the Modification to the Development Program 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 Development District No. 1 and the District.
Redevelopment Plan Overview
Pursuant to the Development Program and authorizing state statutes, the City is authorized to
undertake the following activities in the District:
City of Rosemount
Osprey TIF District 5
1. Property to be Acquired - Selected property located within the District may be
acquired by the 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.
3. Upon approval of a developer's plan relating to the project and completion of the
necessary legal requirements, the City may sell to a developer selected properties
that it may acquire within the District o r may lease land or facilities to a developer.
4. The City may perform or provide for some or all necessary acquisition,
construction, relocation, demolition, and required utilities and public street work
within the District.
5. The City proposes both public and private infrastructure within the District. The
proposed reuse of private property within the District will be for a manufacturing /
warehouse facility, and there will be continued operation of Development District
No. 1 after the capital improvements within Development District No. 1 have been
completed.
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.
The City may acquire any parcel within the District including interior and adjacent street rights of
way. Any properties identified for acquisition will be acquired by the City only in order to
accomplish one or more of the following: storm sewer improvements ; provide land for needed
public streets, utilities and facilities; carry out land acquisition, site improvements, clearance
and/or development to accomplish the uses and objectives set forth in this plan. The City may
acquire property by gift, dedication , condemnation, or direct purchase from willing sellers in order
to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there
is assurance of funding to finance the acquisition and related costs.
Classification of the D istrict
The 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, finds that the District, to be
established, is an economic development district pursuant to M.S., Section 469.174, Subd. 12.
City of Rosemount
Osprey TIF District 6
The District is in the public interest because it will meet the statutory requirement of discouraging
commerce, industry, or manufacturing from moving their operations to another state or
municipality; resulting in increased employment in the State; and resulting in preservation and
enhancement of the tax base of the State.
Pursuant to M.S., Section 469.176, Subd. 4c, revenue derived from tax increment from an
economic development district may not be used to provide improvements, loans, subsidies,
grants, interest rate subsidies, or assistance in any form to developments consisting of buildings
and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the
basis of square footage) are used for a purpose other than:
(1) The manufacturing or production of tangible personal property, including processing
resulting in the change in condition of the property;
(2) Warehousing, storage, and distribution of tangible personal property, excluding retail
sales;
(3) Research and development related to the activities listed in items (1) or (2);
(4) Telemarketing if that activity is the exclusive use of the property; or
(5) Tourism facilities;
(6) Space necessary for and related to the activities listed in items (1) to (5); or
(7) A workforce housing project that satisfies the requirements of M.S., Section 469.176,
Subd. 4c(d).
In meeting the statutory criteria the City relies on the following facts and findings: The facilities in
the District meet the conditions of Purposes 1, 2 and 6.
Duration and First Year of Tax Increment of the District
Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration 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 8 years after receipt of the first increment by the City. The date
of receipt by the City of the first tax increment is expected to be 2024.
Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent
phases or other changes, would terminate after 2032, or when the TIF Plan is satisfied. If
increment is received in 2024, the term of the District will be 2032. The 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 2021 for taxes payable 2022.
Pursuant to M.S., Section 469.177, Subds. 1 and 2 , the County Auditor shall certify in each year
(beginning in the payment year 2024) the amount by which the original value has increased or
decreased as a result of:
City of Rosemount
Osprey TIF District 7
1. Change in tax exempt status of prop erty;
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 City.
The original local tax rate for the District will be the local tax rate for taxes payable 2021, assuming
the request for certification is made before June 30, 2021. 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 City requests 100 percent of the available increase in
tax capacity for repayment of its obligations and current expenditures, beginning in the tax year
payable 2024. The Project Tax Capacity (PTC) listed is an estimate of values when the projects
within the District are completed.
Note: Tax capacity includes a 2.5% 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 9. The tax capacity of the District in year
one is estimated to be $625,650.
Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search,
accompany its request for certification to the County Auditor or its notice of the District
enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the
District or area of enlargement for which building permits have been issued during the eighteen
(18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S.,
Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capa city of the
District by the net tax capacity of improvements for which a building permit was issued.
Sources of Revenue/Bonds to be Issued
The total estimated tax increment revenues for the District are shown in the table below:
City of Rosemount
Osprey TIF District 8
3,086,750$
308,676
3,395,426$
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of
tax increments. The City reserves the right to incur bonds or other indebtedness as a result of
the TIF Plan. As presently proposed, the projects within t he District will be financed by bonds,
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 City to incur
debt. The City will issue bonds or incur other debt only upon the determination that such action
is in the best interest of the City.
The 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 amoun t of $3,395,426. Such bonds may be
in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund
loans. This estimate of total bonded indebtedness is a cumulative statement of authority under
this TIF Plan as of the date of approval.
Uses of Funds
Currently under consideration for the District is a proposal to facilitate the development of a
manufacturing / warehouse facility and infrastructure related to site development . The City has
determined that it will be necessary to provide assistance to the project for certain District costs,
as described.
The City has studied the feasibility of the development or redevelopment of property in and around
the District. To facilitate the esta blishment and development or redevelopment of the District, this
TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible
expenses. The estimate of public costs and uses of funds associated with the District is outlin ed
in the following table.
700,000$
2,000,000
-
134,194
308,675
3,142,869$
252,557
3,395,426$
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.
City of Rosemount
Osprey TIF District 9
Estimated capital and administrative costs listed above are subject to change among categories
by modification of the TIF Plan without hearings and notices as required for approval of the initial
TIF Plan, so long as the total capital and administrative co sts combined do not exceed the total
listed above. Further, the City may spend up to 20 percent of the tax increments from the District
for activities (described in the table above) located outside the boundaries of the District but within
the boundaries of the Project (including administrative costs, which are considered to be spend
outside the District), subject to all other terms and conditions of this TIF Plan.
Fiscal Disparities Election
Pursuant to M.S., Section 469.177, Subd. 3, the City will choose to calculate fiscal disparities
by clause b (inside).
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 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 2021 rate. The total net capacity for the entities listed
above are based on Pay 2021 figures.
565,917,055 457,474 0.0808%
32,375,072 457,474 1.4130%
206,817,692 457,474 0.2212%
22.7160%27.20% 457,474 $ 103,920
36.9540%44.25% 457,474 169,055
20.0460%24.00% 457,474 91,705
3.8020%4.55% 457,474 17,393
83.5180%100.00% $ 382,073
City of Rosemount
Osprey TIF District 10
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 $3,086,750;
(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, but it is not expected to be
significant. With any addition of new residents or businesses, police calls for service
will be increased. New developm ents add an increase in traffic, and additional overall
demands to the call load. The City does not expect that 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.
Typically, new buildings generate few calls, if any, and are of superior construction.
The City does not expect that the proposed development, in and of itself, will
necessitate new capital investment in vehicles or facilities.
The impact of the District on public infrastructure is expected to be minimal. The
development is not expected to significantly impact any traffic movements in the area.
The project requires the extension of Bould er Trail from the current terminus, south.
The developer will contribute funds for a portion of the road extension. The City
anticipates using tax increment to complete the extension of Boulder Trail and create
a connection, and second entrance to the indu strial park, from State Highway 3.The
development of a second access point will reduce the traffic at the current entrance to
the industrial park.
The current infrastructure for sanitary sewer, storm sewer and water will be able to
handle the additional volume generated from the proposed development. As part of
the extension of Boulder Trail, City utilities, including trunk sanitary sewer, water and
storm sewer will be extended with the road extension. The development is expected
to contribute approximately $232,155 in combined City and Met Council sanitary sewer
(SAC) fees and $44,150 in water (WAC) connection fees.
Based on the development plans, the additional costs associated with street
maintenance, sweeping, plowing, lighting and sidewal ks is estimated at $5,000
annually.
The probable impact on the City’s ability to issue future debt is anticipated to be
minimal. The City may issue general obligation debt to finance all or a portion of the
public infrastructure. If general obligation bonds are issued, it is anticipated that at
least 20 percent of the debt service would be paid with tax increment revenue,
therefore the bonds would not count against 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 $740,882;
City of Rosemount
Osprey TIF District 11
(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 t axing jurisdictions
remained the same, is $839,563;
(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.
The County requested additional information related to the potential impacts to County
roads. After discussions, the City has received a letter dated Apri l 15, 2021, stating that
the “County Transportation Staff has determined that the proposed TIF district
development will not generate traffic that will necessitate the need for road
improvements that would be required if the TIF development were not implem ented.”
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
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.
City of Rosemount
Osprey TIF District 12
Appendix A: Map of Development District No. 1 and the TIF District
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Camfield Park
Kidder Park
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Chippendale Park
Shannon Park
ara Park
Jaycee
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Charlie's Park
Carrolls
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Erickson Park
Claret Park
Birch Park
Central Park
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Meadows
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Bloomfield
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Horseshoe
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Development District No. 1
TIF District Redevelopment Project Area
Osprey TIF
District
City of Rosemount
Osprey TIF District 13
Appendix B: Estimated Cash Flow for the District
4/8/2021
Industrial Park Infrastructure - 2.5% Inflation
City of Rosemount, MN
Roads and ROW for Industrial Park located in Development District No. 1
ASSUMPTIONS AND RATES
DistrictType:Economic Development
District Name/Number:
County District #:TBD Exempt Class Rate (Exempt)0.00%
First Year Construction or Inflation on Value 2022 Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District - Specify No. Years Remaining First $150,000 1.50%
Inflation Rate - Every Year:2.50%Over $150,000 2.00%
Interest Rate:1.50%Commercial Industrial Class Rate (C/I)2.00%
Present Value Date:1-Aug-22 Rental Housing Class Rate (Rental)1.25%
First Period Ending 1-Feb-23 Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:Pay 2022 First $174,000 0.75%
Cashflow Assumes First Tax Increment For Development:2024 Over $174,000 0.25%
Years of Tax Increment 9 Non-Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment 2032 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 35.5034%Pay 2021 First $500,000 1.00%
Fiscal Disparities Metro-Wide Tax Rate 139.5040%Pay 2021 Over $500,000 1.25%
Maximum/Frozen Local Tax Rate: 83.518%Pay 2021 UTA 3404 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)83.518%Pay 2021
State-wide Tax Rate (Comm./Ind. only used for total taxes)35.9780%Pay 2021
Market Value Tax Rate (Used for total taxes)0.32712%Pay 2021
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 34.40700.00.010 JJT 15195 Boulder Ct.1,798,700 85%1,528,895 Pay 2021 C/I Pref.29,828 C/I Pref.29,828 1
2 34.03210.65.011 Pahl 1,158,300 100%1,158,300 Pay 2021 Ag Non-Homestead 11,583 C/I 23,166 1
0 0 2,957,000 2,687,195 41,411 52,994
Note:
1. Base values are for pay 2021 based upon review of County website on February 25, 2021. Request for certification date TBD.)
2. Located in SD # 196 and WS Vermillion River.
3. Parcel 34.03210.65.011 is in green acres.
Area/
Phase
Tax Rates
BASE VALUE INFORMATION (Original Tax Capacity)
Prepared by Ehlers
4/8/2021
Industrial Park Infrastructure - 2.5% Inflation
City of Rosemount, MN
Roads and ROW for Industrial Park located in Development District No. 1
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 2022 2023 2024 2025 Payable
1 Mfg./Warehouse 75 75 417,600 31,320,000 C/I Pref.625,650 100%100%100%100%2024TOTAL31,320,000 625,650
Subtotal Residential 0 0 0
Subtotal Commercial/Ind.417,600 31,320,000 625,650
Note:
1. Market values are based upon City and developer estimates.
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
Mfg./Warehouse 625,650 222,127 403,523 337,014 309,876 224,557 102,454 973,901TOTAL625,650 222,127 403,523 337,014 309,876 224,557 102,454 973,901Note:
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.
2. If tax increment in received in 2023, then the district will be one year shorter.
Total Property Taxes 973,901 Current Market Value - Est.2,687,195
less State-wide Taxes (224,557)New Market Value - Est.31,320,000less Fiscal Disp. Adj.(309,876) Difference 28,632,805
less Market Value Taxes (102,454)Present Value of Tax Increment 2,816,270less Base Value Taxes (28,546) Difference 25,816,535
Annual Gross TIF 308,468 Value likely to occur without Tax Increment is less than:25,816,535
WHAT IS EXCLUDED FROM TIF?MARKET VALUE BUT / FOR ANALYSIS
TAX CALCULATIONS
PROJECT INFORMATION (Project Tax Capacity)
Prepared by Ehlers
4/8/2021 Tax Increment Cashflow - Page 3
Industrial Park Infrastructure - 2.5% Inflation
City of Rosemount, MN
Roads and ROW for Industrial Park located in Development District No. 1
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
- - - - 02/01/23
- - - - 08/01/23
- - - - 02/01/24
100%625,650 (52,994) (203,312) 369,344 83.518%308,468 154,234 (555) (15,368) 138,311 134,238 0.5 2024 08/01/24
100%625,650 (52,994) (203,312) 369,344 83.518%308,468 154,234 (555) (15,368) 138,311 267,478 1 2024 02/01/25
100%641,291 (52,994) (208,866) 379,432 83.518%316,894 158,447 (570) (15,788) 142,089 403,337 1.5 2025 08/01/25
100%641,291 (52,994) (208,866) 379,432 83.518%316,894 158,447 (570) (15,788) 142,089 538,185 2 2025 02/01/26
100%657,324 (52,994) (214,558) 389,772 83.518%325,530 162,765 (586) (16,218) 145,961 675,677 2.5 2026 08/01/26
100%657,324 (52,994) (214,558) 389,772 83.518%325,530 162,765 (586) (16,218) 145,961 812,145 3 2026 02/01/27
100%673,757 (52,994) (220,392) 400,371 83.518%334,382 167,191 (602) (16,659) 149,930 951,281 3.5 2027 08/01/27
100%673,757 (52,994) (220,392) 400,371 83.518%334,382 167,191 (602) (16,659) 149,930 1,089,380 4 2027 02/01/28
100%690,601 (52,994) (226,372) 411,235 83.518%343,455 171,727 (618) (17,111) 153,998 1,230,171 4.5 2028 08/01/28
100%690,601 (52,994) (226,372) 411,235 83.518%343,455 171,727 (618) (17,111) 153,998 1,369,915 5 2028 02/01/29
100%707,866 (52,994) (232,502) 422,370 83.518%352,755 176,377 (635) (17,574) 158,168 1,512,373 5.5 2029 08/01/29
100%707,866 (52,994) (232,502) 422,370 83.518%352,755 176,377 (635) (17,574) 158,168 1,653,771 6 2029 02/01/30
100%725,562 (52,994) (238,785) 433,784 83.518%362,287 181,144 (652) (18,049) 162,442 1,797,909 6.5 2030 08/01/30
100%725,562 (52,994) (238,785) 433,784 83.518%362,287 181,144 (652) (18,049) 162,442 1,940,974 7 2030 02/01/31
100%743,701 (52,994) (245,225) 445,483 83.518%372,058 186,029 (670) (18,536) 166,823 2,086,804 7.5 2031 08/01/31
100%743,701 (52,994) (245,225) 445,483 83.518%372,058 186,029 (670) (18,536) 166,823 2,231,548 8 2031 02/01/32
100%762,294 (52,994) (251,826) 457,474 83.518%382,073 191,037 (688) (19,035) 171,314 2,379,082 8.5 2032 08/01/32
100%762,294 (52,994) (251,826) 457,474 83.518%382,073 191,037 (688) (19,035) 171,314 2,525,518 9 2032 02/01/33
Total 3,097,903 (11,152) (308,675) 2,778,075 Present Value From 08/01/2022 Present Value Rate 1.50%2,816,270 (10,139) (280,613) 2,525,518
Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Rosemount\Housing - Economic - Redevelopment\TIF\TIF Districts\Osprey TIF (ED est 2021)\Background\TIF 3.4.2021 - TIF Plan
City of Rosemount
Osprey TIF 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 for the Osprey TIF District as required pursuant to M.S., Section 469.175, Subd. 3 are as
follows:
1. Finding that the Osprey TIF District is an economic development district as defined in M.S.,
Section 469.174, Subd. 12.
The Osprey TIF District is a contiguous geographic area within the City's Development District
No. 1, delineated in the TIF Plan, for the purpose of financing economic development in the
City through the use of tax increment. The District is in the public interest because it wil l
facilitate the development of a manufacturing / warehouse facility and infrastructure related
to site development. This project will increase employment in the State and preserve and
enhance the tax base of the State.
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 reaso nably 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 Osprey TIF
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 development proposed in this plan is a manufacturing /
warehouse facility that meets the City's objectives for economic development. The cost of
land acquisition, and related site improvements necessary to maximize development
potential, makes development of the facility infeasible without City assistance. Tax increment
will be used to pay for land acquisition and infrastructure, including the construction of roads
and right-of-way to benefit the proposed development in addition to other properties in the
City’s industrial park. Without the extension of Boulder Trail and connection to State Highway
3, thus creating an additional entrance to the industrial park, the development could not occur
due to increased traffic concerns.
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 val ue of the projected
tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The
City supported this finding on the grounds that the project includes a manufacturing /
warehouse facility that will create jobs and increase the tax base for the community. The City
reasonably determines that no other development 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.
City of Rosemount
Osprey TIF District 15
b. If the proposed development occurs, the total increase in market value will be
$31,320,000 (see Appendix B of the TIF Plan)
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 $2,816,270 (see Appendix B of the
TIF Plan).
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 $25,816,535 (the amount in clause b less the amount in clause c) without
tax increment assistance.
3. Finding that the TIF Plan for the Osprey TIF District conforms to the general plan for the
development or redevelopment of the municipality as a whole.
The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general
development plan of the City.
4. Finding that the Tax Increment Financing Plan for the Osprey TIF District will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development of
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, increased tax base of the Sta te, and add a high-quality development
to the City.