IP #730KRASS MONROE, P.A.
ATTORNEYS AT LAW
v Mary E. Molzahn
Email marym@krassmonroe.com
Voice Mail (952) 885-4382
Cam
MEMORANDUM
To: City of New Hope
Attention: Kirk McDonald, Community Development Director
From: Mary E. Molzahn, Sr. Development Analyst
Date: November 14, 2002
Re: TIF District No. 02-1
Our File No. 10048-8
Enclosed please find copies of the following:
1. final Restated Redevelopment Plan;
2. final TIF Plan for TIF District No. 02-1;
3. copies of correspondence to the County and the State.
If you are missing any documentation or have any questions, please give a call.
Encl.
G:\WPDATAMEW HOPE0871RIVICIDONALD FINAL TIFL.DOC
SUITE 1100 SOUTHPOINT OFFICE CENTER • 1650 WEST 82ND STREET 0 BLOOMINGTON, MINNESOTA 55431-1447
TELEPHONE 9521885-5999 • FACSIMILE 9521885-5969
www.krassmonroe.com
o
for
REDEVELOPMENT PROJECT NO. 1
including
TAX INCREMENT FINANCING PLANS
for
TAX INCREMENT FINANCING DISTRICTS NOS.
80-2,81-1,82-1,85-1,85-2,86-1,02-1
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
CITY OF NEW HOPE
COUNTY OF HENNEPIN
STATE OF MINNESOTA
APPROVED
• ffleiv•
Prepared By:
Krass Monroe, P.A.
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Bloomington, MN 55431 -1447
(952) 885 -5999
ACTION TAKEN
Based upon the statutory authority described in the Restated Redevelopment Plan
attached hereto, the public purpose findings by the Commissioners of the Housing and
Redevelopment Authority in and for the City of New Hope (the "HRA ") and of the New
Hope Economic Development Authority (the "EDA), and the City Council of the City of
New Hope (the "City "), and for the purpose of fulfilling the development and redevelopment
objectives as set forth in the Restated Redevelopment Plan, Redevelopment Project No. 1 has
been designated and created pursuant to and in accordance with the requirements of
_Minnesota Statutes, Sections 469.001 to 469.047 and 469.090 to 469.1082. The following
official actions were taken in connection therewith:
Master Modification
July 25, 1994 The Tax Increment Financing Plans for Tax Increment Financing
Districts Nos. 80 -2, 81 -1, 82 -1, 85 -1, 85 -2, 86 -1 and the Redevelopment Plans for
Redevelopment Projects Nos. 80 -2, 81 -1, 82 -1, 85 -1, 85 -2, 86 -1 were merged into a Master
Modification and modified to reflect increased geographic area, increased project costs and
increased bonding authority.
October 9, 1995 The Master Modification was modified by the EDA and City to
reflect increased geographic area, increased project costs and increased bonding authority.
February 24, 1997 The Master Modification was modified by the EDA and City to
reflect increased geographic area, increased project costs and increased bonding authority.
April 28, 1997 The Master Modification was modified by the EDA and City to
reflect increased geographic area, increased project costs and increased bonding authority.
July 27, 1998 The Master Modification was modified by the EDA and City to reflect
increased geographic area, increased project costs and increased bonding authority.
June 28, 1999 The Master Modification was modified by the EDA and City to
reflect increased geographic area, increased project costs and increased bonding authority.
September 9, 2002 The Master Modification was modified by the EDA and City to
designate the Redevelopment Plans for Redevelopment Projects Nos. 80 -2, 81 -1, 82 -1, 85 -1,
85 -2 and 86 -1 as the Restated Redevelopment Plan and Redevelopment Project No. 1,
respectively.
Redevelopment Project No. l
September 9, 2002 Redevelopment Project No. 1 was modified by the EDA and City
to reflect increased geographic area, increased project costs and increased bonding authority.
Tax Increment Financing District No. 80 -2 (Hillsboro & 36th Avenue)
August 11, 1980 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project 80 -2 were adopted
by the HRA and City.
April 10, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project 80 -2 were
transferred from the HRA to the EDA.
July 25, 1994 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project No. 80 -2 were
merged by the EDA and City into a Master Modification and modified to reflect increased
geographic area, increased project costs and increased bonding authority.
October 9, 1995 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project No. 80 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
February 24, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project No. 80 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
April 28, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project No. 80 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
July 27, 1998 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project No. 80 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
June 28, 1999 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 and the Redevelopment Plan for Redevelopment Project No. 80 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
September 9, 2002 The Tax Increment Financing Plan for Tax Increment Financing
District No. 80 -2 was modified by the EDA and City to reflect increased geographic area,
increased project costs and increased bonding authority within Redevelopment Project No. 1.
Tax Increment Financing District No. 8 1 -1 (Senior Housing)
April 27, 1981 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
adopted by the HRA and City. _
March 28, 1988 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
modified by the HRA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
April 10, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project 81 -1 were
transferred from the HRA to the EDA.
July 25, 1994 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
merged by the EDA and City into a Master Modification and modified to reflect increased
geographic area, increased project costs and increased bonding authority.
October 9, 1995 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
February 24, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
April 28, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
July 27, 1998 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
June 28, 1999 The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 and the Redevelopment Plan for Redevelopment Project No. 81 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
Tax Increment Financing District No. 8 1 -1 (Senior Housing) Continued
September 9, 2002: The Tax Increment Financing Plan for Tax Increment Financing
District No. 81 -1 was modified by the EDA and City to reflect increased geographic area,
increased project costs and increased bonding authority within Redevelopment Project No. 1.
Tax Increment Financing District No. 82 -1 (Northridge)
August 9, 1982 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
adopted by the HRA and City. _
October 25, 1982 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the HRA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
November 8, 1982 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the HRA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
April 10, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project 82 -1 were
transferred from the HRA to the EDA.
October 23, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
July 27, 1992 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
July 25, 1994 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
merged by the EDA and City into a Master Modification and modified to reflect increased
geographic area, increased project costs and increased bonding authority.
October 9, 1995 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
February 24, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
Tax Increment Financing District No. 82 -1 (Northridge) Continued
April 28, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
July 27, 1998 The Tax increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
June 28, 1999 The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 and the Redevelopment Plan for Redevelopment Project No. 82 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
September 9, 2002: The Tax Increment Financing Plan for Tax Increment Financing
District No. 82 -1 was modified by the EDA and City to reflect increased geographic area,
increased project costs and increased bonding authority within Redevelopment Project No. 1.
Tax Increment Financing District No. 85 -1 (Elderly Apartments)
November 12, 1985 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
adopted by the HRA and City.
April 10, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project 85 -1 were
transferred from the HRA to the EDA.
October 11, 1993 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
July 25, 1994 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
merged by the EDA and City into a Master Modification and modified to reflect increased
geographic area, increased project costs and increased bonding authority.
October 9, 1995 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
February 24, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
April 28, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
July 27, 1998 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
June 28, 1999 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 and the Redevelopment Plan for Redevelopment Project No. 85 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
Tax Increment Financing District No. 85 -1 (Elderly Apartments) Continued
September 9, 2002: The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -1 was modified by the EDA and City to reflect increased geographic area,
increased project costs and increased bonding authority within Redevelopment Project No. 1.
Tax Increment Financing District No. 85 -2 (42nd Avenue)
December 23, 1985 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
adopted by the HRA and City.
June 22, 1987 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
modified by the HRA and City to reflect increased geographic area, increased project costs
and increased bonding authority.
April 10, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project 85 -2 were
transferred from the HRA to the EDA.
July 25, 1994 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
merged by the EDA and City into a Master Modification and modified to reflect increased
geographic area, increased project costs and increased bonding authority.
October 9, 1995 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
February 24, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
April 28, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
July 27, 1998 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
June 28, 1999 The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 and the Redevelopment Plan for Redevelopment Project No. 85 -2 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
Tax Increment Financing District No. 85 -2 (42nd Avenue) Continued
September 9, 2002: The Tax Increment Financing Plan for Tax Increment Financing
District No. 85 -2 was modified by the EDA and City to reflect increased geographic area,
increased project costs and increased bonding authority within Redevelopment Project No. 1.
N
Tax Increment Financing District No. 86 -1 (36th Avenue Apartments)
June 23, 1986 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
adopted by the HRA and City.
April 10, 1989 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project 86 -1 were
transferred from the HRA to the EDA.
July 25, 1994 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
merged by the EDA and City into a Master Modification and modified to reflect increased
geographic area, increased project costs and increased bonding authority.
October 9, 1995 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
F_ ebruary 24, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
April 28, 1997 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
July 27, 1998 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
June 28, 1999 The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 and the Redevelopment Plan for Redevelopment Project No. 86 -1 were
modified by the EDA and City to reflect increased geographic area, increased project costs
and increased bonding authority within the Master Modification.
September 9, 2002: The Tax Increment Financing Plan for Tax Increment Financing
District No. 86 -1 was modified by the EDA and City to reflect increased geographic area,
increased project costs and increased bonding authority within Redevelopment Project No. 1.
Tax Increment Financing District No. 02 -1 (Navarre Project)
September 9, 2002: The Tax Increment Financing Plan for Tax Increment Financing
District No. 02 -1 was adopted by the EDA and City.
TABLE OF CONTENTS
(This Table of contents is not part of the Restated Redevelopment Plan;
it is only for convenience of reference.)
ARTICLE I.
RESTATED REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1
Section 1.1.
Definitions
1 -1
Section 1.2.
Statement and Finding of Public Purpose
1 -3
Section 1.3.
Statutory Authority
1 -4
Section 1.4.
Statement of Objectives
1 -4
Section 1.5.
Estimated Project Costs and Revenues
1 -6
Section 1.6.
Environmental Control
1 -6
Section 1.7.
Administration and Maintenance
1 -6
Section 1.8.
Rehabilitation
1 -7
Section 1.9.
Relocation
1 -7
Section 1.10.
Boundaries
1 -7
Section 1.11.
Parcels to be Acquired
1 -7
Exhibit I -A
Estimated Project Costs and Revenues
I -A -1
Exhibit I -B
Parcels to be Included
I -B -1
Exhibit I -C
Boundary Map
I -C -1
ARTICLE II.
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 02-1
(NAVARRE PROJECT)
Section 2.1.
Statement of Objectives
2-1
Section 2.2.
Redevelopment Plan
2-1
Section 2.3.
Parcels to be Included
2-1
Section 2.4.
Parcels in Acquisition
2-1
Section 2.5.
Development Activity for which Contracts have been Signed
2-1
Section 2.6.
Specific Development Expected to Occur
2-1
Section 2.7.
Prior Planned Improvements
2-1
Section 2.8.
Fiscal Disparities
2-2
Section 2.9.
Estimated Project Costs
2-2
Section 2.10.
Estimated Amount of Indebtedness
2-2
Section 2.11.
Sources of Revenue
2-2
Section 2.12.
Estimated Original and Captured Tax Capacities
2-2
Section 2.13.
Tax Rate
2-2
Section 2.14,
Tax Increment
2-2
Section 2.15.
Type of TIF District
2-2
Section 2.16.
Duration of TIF District
2-2
Section 2.17.
Estimated Impact on Other Taxing Jurisdictions
2-3
Section 2.18.
Modification of TIF District and/or TIF Plan
2-3
Exhibit II-A
Exhibit H-B
Exhibit 11-C
Exhibit II-D
Exhibit II-E
Parcels Included in TIF District 111-A-1
Boundary Map of TIF District II-B-1
Cash Flow Analysis
"But For" Analysis
Estimated Impact on Other Taxing Jurisdictions
II -C -1
II -D -1
II -E -1
ARTICLE I
RESTATED REDEVELOPMENT PLAN FOR
. REDEVELOPMENT PROJECT NO. 1
Section 1.1. Definitions The terms defined below shall, for purposes of this
Restated Redevelopment Plan and attached Tax Increment Financing Plans, have the
meanings herein specified, unless the context otherwise specifically requires;
"Citv" means the City of New Hope, a municipal corporation and political
subdivision of the State of Minnesota.
" Comprehensive Plan means the City's comprehensive plan which contains the
objectives, policies, standards and programs to guide public and private land use,
development, redevelopment and preservation for all lands and water within the City.
" Council " means the City Council of the City.
"Coup ' means the County of Hennepin, Minnesota.
"Economic Development Authority and " mean an economic development
authority created or authorized to be created by Minnesota Statutes Sections 469.090 to
469.1082.
" Economic Development Authority Act or " EDA Act means the statutory
provisions of Minnesota Statutes, Sections 469.090 to 469.1082, inclusive, as amended and
supplemented from time to time.
"
"EDA Authori ty " means the New Hope Economic Development Authority, also
referred to as the Economic Development Authority in and for the City of New Hope,
Minnesota..
" EDA Commissioners means the Commissioners of the EDA.
" Housing and Redevelopment Authority and " HRA " mean a housing and
redevelopment authority created or authorized to be created by Minnesota Statutes Sections
469.001 to 469.047.
" Housing and Redevelopment Authority Act or " HRA Act means the statutory
provisions of Minnesota Statutes, Section 469.001 to 469.047, inclusive, as amended and
supplemented from time to time.
1 -1
"HRA Authori ty " means the Housing and Redevelopment Authority in and for the
City of New Hope.
" HRA Commissioners means the Commissioners of the HRA.
" Land Use Regulations means all federal, state and local laws, rules, regulations,
ordinances and plan relating to or governing the use or development of land in the City,
including but not limited to environmental , zoning .and building code laws and regulations.
" Master Modification means the combined areas subject to the Redevelopment Plans
and Redevelopment Projects adopted and created prior to September 9, 2002.
" Plan " means the Restated Redevelopment Plan for the Project Area.
" Project " means Redevelopment Project No. 1 and the public improvements and
facilities to be constructed therein, as more fully described in Article I, Section 1.5. of the
Restated Redevelopment Plan.
" Project Area means the real property located within the geographic boundaries of
Redevelopment Project No. 1.
" Public Costs means the costs eligible to be financed by tax increments under
Minnesota Statutes, Section 469.176, Subdivision 4.
" Redevelopment Plans means the Redevelopment Plans for Redevelopment Projects
Nos. 80 -2, 81 -1, 82 -1, 85 -1, 85 -2, or 86 -1.
" Redevelopment Projects means Redevelopment Projects Nos. 80 -2, 81 -1, 82 -1, 85-
1, 85 -2, and 86 -1 initially approved by the City and HRA and subsequently transferred from
the HRA to the EDA.
" Redevelopment Project No. 1 " means the area previously included in the Master
Modification, hereinafter known as the Restated Redevelopment Plan, the additional area
added at the time of the adoption of the Restated Redevelopment Plan and any area as may
be added from time to time.
" Restated Redevelopment Plan means this Plan as described in Article 1.
" School District means Independent School District No. 281.
"State" means the State of Minnesota.
1 -2
" Tax Increment Bonds means the general obligation or revenue tax increment bonds
issued and to be issued by the City - to finance the public costs associated with
Redevelopment Project No, 1 as stated in the Restated Redevelopment Plan and in the Tax
Increment Financing -Plan for each of the Tax Increment Financing Districts within
Redevelopment Project No, 1. The term "Tax Increment Bonds " shall also include any —
obligations issued to refund the Tax Increment Bonds.
" Tax Increment Financing Act or " Tax Increment Act means the statutory
provisions of Minnesota Statutes Sections 469.174 to 469.1791, inclusive, as amended and
supplemented from time to time.
" Tax Increment Financing District means any Tax Increment Financing District
presently established or to be established in the Project Area.
" Tax Increment Financing Plan means the respective Tax Increment Financing Plan
for each Tax Increment Financing District located within the Project Area.
Section 1.2. Statement and Finding of Public Purpose In August of 1980 the HRA
Commissioners of the HRA Authority determined that there was a need to undertake certain
actions designed to encourage, ensure and facilitate the private sector to (1) develop and
redevelop underutilized and unused land located within the corporate limits of the City; (2)
improve the tax base of the City, the County and the School District thereby enabling them to
better utilize existing public facilities and provide needed public services; (3) improve the
general economy of the City , the County, the School District and the State; and, (4) provide
additional employment opportunities for residents of the City and surrounding area. It was
found that there were certain parcels of property within the City which were potentially more
useful, productive and valuable than was being realized under existing conditions and
therefore were not contributing to the tax base of the City, the County, the School District
and the State to their full potential. The HRA Commissioners determined that said parcels of
property were deemed to be vacant, underutilized, or blighted due to poor planning and
subdivision and zoning practices, and to existing structures which because of (i) dilapidation,
(ii) obsolescence, (iii) overcrowding, (iv) faulty arrangement or design, (v) lack of
ventilation, light and sanitary facilities, (vi) excessive land coverage, (vii) inadequate land
coverage, (viii) deleterious land use or (ix)obsolete layout, or (x) any combination of these or
other factors, were detrimental to the safety, health, morals or welfare of the City, pursuant to
the HRA Act.
Therefore, the HRA Commissioners determined it was necessary to exercise its
authority to develop, implement and finance a Plan for improving the Project Area to (1)
provide an impetus for private development and redevelopment; (2) maintain and increase
1 -3
employment; (3) utilize existing potential; and, (4) provide other facilities as outlined in
Section 1.4. of the Plan.
The HRA Commissioners also determined (1) that the proposed development or
redevelopment would not occur solely through private investment in the foreseeable future;
(2) that the Tax Increment Financing Plans proposed herein were consistent with the Plan;
(3) that the Tax Increment Financing Plans would afford maximum opportunity, consistent
with the sound needs of the City as a whole, for the development or redevelopment of the
Project Area by private enterprise; and (4) that the Plan conformed to the comprehensive
plan of the City.
The HRA Commissioners further determined that the welfare of the City as well as
the State required active promotion, attraction, encouragement and development of
economically sound housing, industry and commerce to carry out its stated public purpose
objectives.
Subsequently the City established an EDA Authority and on April 10, 1989 the HRA
Commissioners transferred control, authority and operation of its Redevelopment Projects
and Tax Increment Financing Districts to the EDA Authority At the time of this transfer, the
EDA Commissioners reaffirmed the statement and finding of public purpose originally set
forth by the HRA Commissioners. At the time of the adoption of the Plan, the EDA
Commissioners again affirmed the statement and finding of public purpose.
Section 1.3. Statutory Authori ty . The HRA Commissioners determined that it was
desirable and in the public interest to designate a specific area within the corporate limits of
the City as the Project Area and to establish, develop and implement a Plan pursuant to the
provisions of the HRA. Act, as amended and supplemented from time to time. Upon its
receipt of the Redevelopment Projects and Tax Increment Financing Districts from the HRA
Authority, the EDA Commissioners supported the HRA Commissioners' determinations
pursuant to the provisions of the EDA Act, as amended and supplemented from time to time.
Funding of the necessary activities and improvements in the Project Area was and
shall be accomplished, in part, with any funds the HRA Authority had and the EDA
Authority may have available from any source, including funds made available by the City
and through tax increment financing in accordance with the Tax Increment Act.
The Tax Increment Act authorized the establishment of tax increment financing
districts within the Project Area, pursuant to the requirements as set forth in Section 469.174.
The Tax Increment Act also set forth the procedures and requirements necessary to establish
tax increment financing districts, designated the types of tax increment financing districts to
be created, and established the limitations and requirements that applied to the activities and
1 -4
public improvements which can be financed for each type of tax increment financing district.
Section 1.4. Statement of Objectives The HRA Commissioners originally
determined, and its determinations were reaffirmed by the EDA Commissioners, that the
establishment of the Project Area would provide the City with the ability to- achieve certain
public purpose goals not otherwise obtainable in the foreseeable future without intervention
in the normal development or redevelopment process. These public purpose goals included:
(1) restoration and improvement of the tax base and tax revenue generating capacity of the
Project Area; (2) increased employment opportunities; (3) realization of comprehensive
planning goals; (4) removal of blighted conditions; and, (5) revitalization of the property
within the Project Area to create an attractive, comfortable, convenient and efficient area for
housing, industrial, commercial and related uses.
The Plan objectives originally established by the HRA Commissioners and restated
by the EDA Commissioners and further affirmed by this Plan include the following:
1. Promote and secure the prompt development or redevelopment of certain
property in the Project Area, which property is not now in productive use or in its highest and
best use, in a manner consistent with the City's comprehensive plan and with a minimum
adverse impact on the environment and thereby promote and secure the development of other
land in the City.
2. Promote and secure additional employment opportunities within the Project
Area and the City for residents of the City and surrounding area, thereby improving living
standards, reducing unemployment and the loss of skilled and unskilled labor and other
human resources in the City.
3. Secure the increased valuation of property subject to taxation by the City,
County, School District and other taxing jurisdictions in order to better enable such entities
to pay for governmental services and programs required to be provided by them.
4. Provide for the financing and construction of public improvements in and
adjacent to the Project Area necessary for the orderly and beneficial development or
redevelopment of the Project Area and adjacent areas of the City.
5. Promote the concentration of new desirable residential, commercial, office and
other appropriate development or redevelopment in the Project Area so as to maintain the
area in a manner compatible with its accessibility and prominence in the City.
6. Encourage local business expansion, improvement, development or
redevelopment whenever possible.
1 -5
7. Create a desirable and unique character within the Project Area through
quality land use alternatives and design quality in new and remodeled buildings.
8. Encourage and provide maximum opportunity for private development or
redevelopment of existing areas and structures which are compatible the Plan.
9. Create viable environments which would upgrade and maintain housing stock,
maintain housing health and safety quality standards, and maintain and strengthen individual
neighborhoods.
10. Stimulate private activity and investment to stabilize and balance the City's
housing supply.
11. Eliminate code violations and nuisance conditions that adversely affect
neighborhoods.
12. Revitalize property to create a safe, attractive, comfortable, convenient and
efficient area for residential use.
13. Recreate and reinforce a sense of residential place and security which creates
neighborhood cohesiveness through City investment in neighborhood infrastructure and
public improvements, including landscaping, park improvements, local street modifications
to reduce traffic impacts, street repaving, curb and gutter replacement, and streetlight
updating.
14. Encourage infill development and redevelopment that is compatible in use and
scale with surrounding neighborhoods.
15. Rehabilitate the existing housing stock and preserve existing residential
neighborhoods wherever possible.
16. Demolish and reconstruct, where necessary, aging residential buildings to
preserve neighborhoods.
17. Removal of substandard structures.
Section 1.5. Estimated Project Costs and Revenue The estimated project costs and
revenues associated with the Project Area are described on Exhibit I -A. The City may issue
Tax Increment Bonds to pay the estimated costs of the public improvements in the amounts
described on Exhibit I -A.
1 -6
Section 1.6. Environmental Control The proposed development or redevelopment in
the Area does not present significant environmental concerns. All municipal actions,
public improvements and private development or redevelopment shall be carried out in a
manner consistent with existing environmental standards.
Section 1.7. Administration and Maintenance Maintenance and operation of the
public improvements will be the responsibility of the City Manager who shall also serve as
Administrator of the Project Area. Each year the Administrator will submit to the EDA
Authority the maintenance and operation budget for the following year.
The Administrator will administer the Project Area pursuant to the provisions of the
Act and the Tax Increment Act; provided, however, that such powers may only be exercised
at the direction of the EDA Authority. No action taken by the Administrator pursuant to the
aforementioned powers shall be effective without authorization by the EDA Authority.
Section 1.8. Rehabilitation Owners of properties within the Project Area will be
encouraged to rehabilitate their properties to conform with the applicable state and local
codes and ordinances, as well as any design standards. Owners of properties who purchase
property within the Project Area from the City may be required to rehabilitate their properties
as a condition of sale of land. The EDA Authority will provide such rehabilitation assistance
as may be available from federal, state or local sources.
A developer or redeveloper may be any person, business, corporation or government
unit, including the City. A developer or redeveloper may initiate a plan and participate with
the City in the development or redevelopment thereof.
Section 1.9 Relocation The EDA Authority accepts its responsibility for providing
for relocation, if and when applicable, pursuant to Minnesota Statutes, Section 469.133.
Section 1.10. Boundaries The boundaries of the Project Area are described on
Exhibit I -B and illustrated on Exhibit I -C.
Section 1.11. Parcels to be Acquired The EDA may acquire any of the parcels
described on Exhibit I -B.
G: \WPDATA\N\NEW HOP010\REDE\REDE PLAN.DOC
1 -7
EXHIBIT I -A
ESTIMATED PUBLIC COSTS AND REVENUES FOR REDEVELOPMENT PROJECT NO. 1
TIF DISTRICT #80 -2
AS RESTATED SEPTEMBER 9, 2002
REVENUES
Tax Increment Revenue
$
640,000
Interest on Invested Funds
205,000
Bond Proceeds
300,000
Other
$
1,145,000
COSTS
$
1,996,077
Site Improvements /Preparation Costs
$
100,000
Installation of Public Utilities
$
120,000
Public Park Facilities
302,776
Bond Principal Payments
300,000
Bond Interest Payments
252,224
Administrative Expenses
70,000
Total
$
1,145,000
TIF DISTRICT #81 -1
AS RESTATED SEPTEMBER. 9, 2002
REVENUES
Tax Increment Revenue
$
1,270,000
Interest on Invested Funds
270,000
Bond Proceeds
450,206
Other
5,871
$
1,996,077
COSTS
Land /Building acquisition
$
150,000
Site Improvements /Preparation Costs
115,000
Streets and Sidewalks
880,526
Bond Principal Payments
145,000
Bond Interest Payments
248,251
Administrative Expenses
95,000
TIF Refunding Bonds
362,300
Total
$
1,996,077
I -A -1
BUDGET.As
TIF DISTRICT #82 -1
AS RESTATED SEPTEMBER 9, 2002
!��arica -Wi
Tax Increment Revenue
$
25,827,000
Interest on Invested Funds
1,600,000
Bond Proceeds
3,000,000
Other
$
30,427,000
COSTS
89,000
Site Improvements /Preparation Costs
$
11,724,287
Public Park Facilities
3,000,000
Social, Recreational, or Conference Facilities
$
7,800,000
Interest Reduction Payments
1,619,275
Bond Principal Payments
1,450,000
Bond Interest Payments
1,205,815
Administrative Expenses
1,203,000
TIF Refunding Bond
2,424,623
Total
$
30,427,000
TIF DISTRICT #85 -1
AS RESTATED SEPTEMBER 9, 2002
REVENUES
Tax Increment Revenue
$
2,000,000
Interest on Invested Funds
50,000
Bond Proceeds
407,750
Other
600
Transfers In
89,000
$
2,547,350
COSTS
Site Improvements /Preparation Costs
$
465,000
Social, Recreational, or Conference Facilities
432,494
Interest Reduction Payments
633,104
Bond Principal Payments
135,000
Bond Interest Payments
246,057
Administrative Expenses
220,000
TIF Refunding Bond
415,695
Total
$
2,547,350
BUDGET.As
11 i 1
TIF DISTRICT #85 -2
AS RESTATED SEPTEMBER 9, 2002
Tax Increment Revenue
$
4,545,000
Interest on Invested Funds
520,000
Bond Proceeds
2,356,501
Special Assessments
$
550,000
County Aid
412,103
Transfers In
$
244,359
Social, Recreational, or Conference Facilities
$
8,627,963
COSTS
835,000
Land /Building Acquisition
$
500,000
Site Improvements /Preparation Costs
3,545,000
Social, Recreational, or Conference Facilities
430,572
Bond Principal Payments
$
1,185,000
Bond Interest Payments
721,399
Administrative Expenses
560,000
TIF Refunding Bond
1,685,992
Total
$
8,627,963
TIF DISTRICT #86 -1
AS RESTATED SEPTEMBER 9, 2002
Tax Increment Revenue
$
3,249,465
Interest on Invested Funds
600,000
Bond Proceeds
1,735,000
$
5,584,465
COSTS
Site Improvements /Preparation Costs
$
1,457,350
Social, Recreational, or Conference Facilities
671,905
Bond Principal Payments
835,000
Bond Interest Payments
878,298
Administrative Expenses
400,000
TIF Refunding Bond
1,341,912
Total
$
5,584,465
I -A -3
BUDGET.As
EXHIBIT I-A - CONTINUED
. TIF DISTRICT #02-1
AS ADOPTED SEPTEMBER 9, 2002
The total project costs associated with this portion of Redevelopment Project No. 1 are
estimated at $11,000,000. The public portion of these costs and their associated
revenues are estimated below.
REVENUES
Tax Increment Revenue
Bond Proceeds
COSTS
Land/Building Acquisition
Site Improvements /Preparation Costs
Installation of Public Utilities
Parking Facilities
Bond Principal Payments
Bond Interest Payments
Loan/Note Interest Payments
Administrative Expenses
Contingency
Total
mm
1,532,676
400,000
1,932,676
250,000
200,000
350,000
50,000
400,000
200,000
300,000
160,000
22,676
1,932,676
EXHIBIT A3 -
'
PARCELS |N THE PROJECT AREA
A8 RESTATED AND MODIFIED A@DF SEPTEMBER B.20O2
05 - 21 - UU04
1 005
-11 8-21-21-0022
O5-118-21-21-0040
O5'118-21-�1-011C
05-118-21'22-0081
05-118-21-22-0062
1-32-U003
05-118-21-33 22
05-118-21-33-0036
05-118-21-33-0084
&- _
��� ....... ... ����---- l...".-
05-118-21-33-0089
06-118-21-43-0007
06-118-21-43-0009
-
08'118-21-43-0010
|0G-118-21-43-0013
105-118-21 -3Y-
710% 18-21-13-0075
06- 118-21-42-0008
06-118-21 2-0012
06-118-21-42-0035
00-118-21-43-0002
08-118-21-43-0008
-118 1-44-0009
EXHIBIT A3-CONT
' .
PARCELS |N THE PROJECT AREA
AG RESTATED AND MODIFIED ASCJF SEPTEMBER S.2OO2
'06 0023
106-118-21 0024
i-I 18-21-21-0003
-1 18-21-21-0031
Ll 8-21-23-0004
i 117
�17 118-2i 24-'6080
17-118-21-24'0098
17-118-21-24-0099
17'118`21-24'0100
17-118-21-24-U101
17-118-21-24-0102
17-118-21-24-0105
17-118-21-24'0106
17-118-21-24-0108
17-118-21-24-0109
_
17-118-21-31-0004
����---l-, ............
17-118-21-31-0006
17-118-21-31-0008
---------------
17-118'21-31-OOU8
17-118'21-31~OD1O
1
I -B -3
EXHIBIT I -B - CONTINUED
PARCELS IN THE PROJECT AREA
AS RESTATED AND MODIFIED AS OF SEPTEMBER
9, 2002
'19-118-21-22-0143
19- 118 -21 -22 -0108
19- 118 -21-44 -0051
19 -118 -21-44 -0072
_ _ .._.. __.___..
19- 118 -2 -2 -0 14_4
._._., __..__.
1 1 18 - 21 -22 -0109
:19 118 -2 -005_2
19- 11_8 -21-44 -0073_
19- 118 2 1 -2
11 - 21 - -01
19- 118 - 21-4 4 -0053
1 -118- 2_1 -44 -0
_0 1 4 519-
19- 1 -2 1 -22 -0 mF
m `19- 1 18_ - -2 2 -011
_ 1 11 2 1 - 4_4_ -0054
1, 11 - - 0075 V mw
' 19-118-21-22-0073
9118 2 11419-118-21-44-0055
1- -1 -22- 0
- 2
_2
19- 118 -21-44 -0076
_.vr_.. _ w . ._ _ ..... ._
19- 11 -21 -22 -0
___..._ _. _..... _ ____....
1 118 -21 -22 -0115
. _. _ _._..._
19- 118 -21-44 -0066
_... ..._ _. _... _..
i19- 118 -21-44 -0
19- 118 -21 -22 -0103
?19- 118 -21 -33 -0001
'19- 118 -21-44 -0067
'i20- 118 -21 -22 -0009
X19- 118 -21 -22 -0104
19- 118 -21 -33 -0008
419 -118 -21-4 -0068
€20- 1 18 -21 -22 -0011
19-118-21-22-0105
19- 118 -21 -33 -0009
X19- 118- 2 1-44 -00 69
20-118-21-34-0026
19- 118 -21 -22 -0106
19- 118 -21 -44 -0049
19- 118 -21-44 -0070
20- 118 -21 -34 -0033 _
�19- 118 -21 -22 -0107
19- 118 - 21-4 4 - 0050
=19 -118 -21-4 - 0071
I -B -3
EXHIBIT I -C
AS RESTATED AND MODIFIED
SEPTEMBER 9, 2002
MaeuesMe•..•« M•• .wunue.•w «.e.eenw.«.•wes•..Mt••
K
1 — —
T901N =N e.
Jr
I -C -1
• C
0D• AD 10
0
�q Limits
�— lAkes
IS00 0 1580
Fat
sslmsroo
� .u� O ws t
raoam,
•nguY4 2001
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 02-1
(NAVARRE PROJECT) _
Section 2.1 Statement of Objectives See Article I, Section 1.4, Statement of
Objectives.
Section 2.2 Redevelopment Plan See Article I, Sections 1.2 through 1.11.
Section 2.3 Parcels to be Included The boundaries of Tax Increment Financing
District No. 02 -1 (the "TIF District ") are described in Exhibit II -A and illustrated on Exhibit
II -B.
Section 2.4 Parcels in Acquisition The EDA Authority may publicly acquire and
reconvey any or all of the parcels in the TIF District identified in Exhibit I -B.
The following are conditions under which properties not designated to be acquired
may be acquired at a future date:
(1) The EDA Authority may acquire property by gift, dedication, condemnation or
direct purchase from willing sellers in order to achieve the objectives of the Tax Increment
Financing Plan (the "TIF Plan "); and
(2) Such acquisition will be undertaken only when there is assurance of funding to
finance the acquisition and related costs.
Section 2.5 Development Activi for which Contracts have been Signed As of the
date of adoption of the TIF Plan, the EDA Authority contemplates entering into a signed
contract with New Hope, LLC, a Minnesota limited liability company, for the activities
discussed below.
Section 2.6 Specific Development Expected to Occur At this time it is anticipated
that the construction of a warehouse of up to 130,000 square feet and a warehouse /trucking
facility of up to 10,000 square feet will both be completed in 2003. Upon completion of the
construction, it is expected that the City's tax base will increase by approximately $6.5
million.
Section 2.7 Prior Planned Improvements The EDA Authority shall, after due and
diligent search, accompany its request to the County Auditor for the certification of or its
notice of enlargement of the TIF District with a listing of all properties within the TIF
District for which building permits have been issued during the eighteen (18) months
__ 2 -1
immediately preceding approval of the TIF Plan by the EDA Authority.
The County Auditor shall increase the original tax capacity of the TIF District by the
tax capacity of each improvement for which a building permit was issued. If said listing
does not accompany the aforementioned request or notice, the absence of such listing shall
indicate to the County Auditor that no building permits were issued in the eighteen (18)
months prior to the EDA Authority's approval of the TIF- Plan.
Section 2.8 Fiscal Disparities The Council hereby elects the method of tax
increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3,
clause (b) as required by Minnesota Statutes for economic development districts.
Section 2.9 Estimated Project Costs The estimated costs associated with this portion
of Redevelopment Project No. 1 (the "Project Area ") are listed on Exhibit I -A.
Section 2.10 Estimated Amount of Indebtedness It is anticipated that approximately
$850,000 of indebtedness will be incurred with respect to this portion of the Project Area.
Section 2.11 Sources of Revenue The costs outlined on Exhibit I -A may be financed
from City or EDA Authority contributions, internal funding, bond proceeds from general
obligation or revenue debt, tax increments as they are generated and become available, or
other financing mechanisms authorized by law. The EDA Authority reserves the right to use
other revenue sources legally applicable to the Project Area including, but not limited to,
special assessments, utility revenues, federal/state funds, and investment income. Sources of
revenue are listed on Exhibit I -A.
Section 2.12 Estimated Original and Captured Tax Capacity. The tax capacity of all
taxable property in the TIF District, as most recently certified by the Commissioner of
Revenue of the State of Minnesota on January 2, 2001, is estimated to be $4,891.
The estimated captured tax capacity of the TIF District upon completion of the
proposed improvements on January 2, 2004, is estimated to be $90,806. The ED Authority
intends to utilize 100% of the captured tax capacity, for the duration of the TIF District, for
purposes of determining tax increment revenues.
Section 2.13 Tax Rate The pay 2002 tax capacity rate is 1.41880.
Section 2.14 Tax Increment Annual initial tax increment has been calculated at
approximately $128,835 assuming a static tax capacity rate and a valuation increase of zero
percent (0.0 %) compounded annually. A financial analysis is provided on Exhibit II-C.
Section 2.15 Type of TIF District The TIF District is, pursuant to Minnesota
Statutes Section 469.174, Subdivision 12, an economic development district.
2 -2
EXHIBIT II—B
-�Y
F 4
MIA nommmommow
atu
p
0*9 191A
lam
sm an
IML
(act O)j N 3w
3moos
el
14
A�t
P., l op
CL 71 ;z
N
32
r — 3AV 1H 9f » K --.�Y. r � • � ,� ' i\ " Y
311IN11140111 111MME Ilia 1110111=1111
2 SUBJECT AREAS COMPRISE
TAX INCREMENT FINANCING
DISTRICT NO. 02-1
II—B-1
EXHIBIT II -C
ASSUMP
Original Market Values
1/2/2001 Market Value (Pay 2002)
Navarre
(Sq. Feet)
1 Navarre Parking lot 08- 118 -21 -24 -0005
7550 49th Ave.
2 Ahrens Trucking 08- 118 -21 -23 -0006
7600 49th Ave.
3 Outiot 08- 118 -21 -23 -0008
_
130,000 sq. ft. @ $
Ahrens
% of Site
1 9200 49th Ave N. 07- 118 -21 -23 -0022
66.7%
Totals
43,570
Original Tax Capacity
1/2/2001 Market Value (Pay 2002)
<= 150,000 1.50%
(Sq. Feet)
> 150,000 2.00%
Building Total
Estimated Market Value
calculations
Navarre warehouse
130,000 sq. ft. @ $
Ahrens Building
10,000 sq. ft. @ $
Estimated Tax Capacity
- 108,000
Navarre warehouse
43,570
Ahrens Building
42,000 151,000
- 150,000 1.50%
162,280
> 150,000 2.00%
- 186,000
Estimated Taxes
82,
Navarre warehouse
130,000 sq. ft. @ $
Ahrens Building
10,000 sq. ft. @ $
Estimated Tax Increment - Annual
Area of Parcel
1/2/2001 Market Value (Pay 2002)
(Acres)
(Sq. Feet)
Land
Building Total
* used for tax increment
calculations
Admin Fees
10.00%
0.98
42,675
108,000
- 108,000
1.00
43,570
109,000
42,000 151,000
3.73
162,280
186,000
- 186,000
1.90
82,
82,724
- 82,7
7.60
331,249
$ 485,724
$ 42,000 $ 527,724
1.47
per sq. ft. of Land
4,891
7,100,000
50.00 per sq. ft. = 6,500,000
60.00 per sq. ft. = 600,000
129,250
11,250
2.16 per sq. ft. = 258,258
2.25 per sq. ft. = 22,479
128,288
Local Tax Rate - Pay 2002
1.41880 *
State Tax Rate - Pay 2002 estimate
0.57933 (C /I only)
Combined Tax Rate - C/I Property Only
1.99813
* used for tax increment
calculations
Admin Fees
10.00%
State Auditor Fee
0.425%
Inflation (after 2 yrs of full value)
0.00%
PV Rate - Rev. Note 12/1 /2002
7.00%
PV Rate - City 12/1/2002
5.00%
Fiscal Disparities Rate
33.0385%
140,500
280,737
45.7% of total taxes paid
Navarre - Ahrens TI Combined 4.xls II -C -1
EXHIBIT II -C - CONTINUED
CASH FLOW AND PRESENT VALUE ANALYSIS
1,026,303 102,630 923,673 923,673
Navarre - Ahrens TI Combined 4.xls II -C -2
(a)
Date
<-------- ---- -- ANNUAL
(b) (c)
Original Estimated
Tax Tax
Capacity Capacity,
(see assumptions)
0.0% Inflation
- - - --->
(d)
Captured
Tax
Capacity
(c) - (b)
(prev. year)
(e)
Fiscal
Disparities
(d) x
33.0385%
M
Adjusted
Captured
Tax Cap.
(d) - (e)
<________ ____
(g)
Est. T. I.
(f) x
1.4188
- St. Aud. Fee
0.425%
SEMI -ANNUAL
(h) (i)
Less: Available
Admin Tax
Fees Increment
(g) x (g) - (h)
10.00%
->
G)
Cumulative
Avail. Tax
Increment
Total of (i)
06/01/02
4,891
4,891
0
0
0
0
0
0
12/01/02
4,891
4,891
0
0
0
0
0
0
06/01/03
4,891
4,891
0
0
0
0
0
0
0
12/01/03
4,891
4,891
0
0
0
0
0
0
0
1
06/01/04
4,891
140,500
0
0
0
0
0
0
0
12/01/04
4,891
140,500
0
0
0
0
0
0
0
2
06/01/05
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
57,730
12/01/05
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
115,459
3
06/01/06
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
173,189
12/01/06
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
230,918
4
06/01/07
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
288,648
12/01/07
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
346,377
5
06/01/08
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
404,107
12/01/08
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
461,836
6
06/01/09
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
519,566
12/01/09
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
577,295
7
06/01/10
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
635,025
12/01/10
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
692,755
8
06/01/11
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
750,484
12/01/11
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
808,214
9
06/01/12
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
865,943
12/01/12
4,891
140,500
135,609
(44,803)
90,806
64,144
6,414
57,730
923,673
1,026,303 102,630 923,673 923,673
Navarre - Ahrens TI Combined 4.xls II -C -2
"BUT FOR" ANALYSIS OF
TAX INCREMENT FINANCING DISTRICT NO. 02 -1
New Hope, LLC, a Minnesota limited liability company, proposes to construct a warehouse
of up to 130,000 square feet adjacent to its existing facility (the "Adjacent Site "). It also
proposes to construct a warehouse /trucking facility of up to 10,000 square feet on a site
referred to as the relocation site (the "Relocation Site "), a site which the City has targeted for
redevelopment for a number of years. Both the Adjacent Site and the Relocation Site, while
not contiguous, are in the TIF District. The Adjacent Site currently contains a business
which must be relocated and the existing structure demolished. The Adjacent Site also has
sewer and water lines which must be relocated. The Relocation Site has extremely poor soils
which must be corrected before any building can be constructed. In addition, a storm water
pond must be placed on the Relocation Site to accommodate both the site and the adjacent
areas. Without tax increment assistance for both the soil correction on the Relocation Site,
and the utility relocation, business relocation and structure demolition on the Adjacent Site,
this development would not proceed. In addition to creating between 40 and 50 additional
employment opportunities, this development will provide an additional $6.5 million to the
City's tax base. Finally, without tax increment assistance, the developer would have had to
develop its business outside of the City.
G: \WPDATA \N \NEW HOPE \08 \TIF \TIF PLAN EXHIEIT.DOC
11-D-1
EXHIBIT 11 - E
ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 02 -1
IMPACT ON TAX BASE
ENTITY
TAX
BASE
ORIGINAL
TAX
CAPACITY
ESTIMATED
TAX
CAPACITY
CAPTURED
TAX
CAPACITY `
DISTRICT
AS %
OF TOTAL
City of New Hope
14,316,989
4,891
140,500
90,806
0.634%
County of Hennepin
1,048,786,334
4,891
140,500
90,806
0.009%
ISD # 281
69,248,429
4,891
140,500
90,806
0.131%
* Reflects adjustment
for fiscal disparities
contribution.
IMPACT ON TAX RATE
TAX
% OF
TAX
TAX RATE
ENTITY
RATE
TOTAL
INCREMENT
INCREASE
City of New Hope
0.53872
37.97%
48,919
0.344%
County of Hennepin
0.50409
35.53%
45,774
0.004%
ISD # 281
0.30213
21.29%
27,435
0.040%
Other
0.07386
5.21%
6,707
1.41880
100.00%
128,835
Assumes construction would have occurred without the creation of a Tax Increment Financing
District. If construction is a result of Tax Increment Financing, the impact is $0.
MAN
KRASS MONROE
T T 0 R N E Y S A T
November 20, 2002
P. A.
L A W
Ms. Jean Bierbaum
Taxpayers Services Department
Hennepin County Government Center, A2103
300 South Sixth Street
Minneapolis, MN 55487
Re: City of New Hope- Tax Increment Financing District No. 02-1
Dear Ms. Bierbaum:
Enclosed please find the following:
1. Resolution No. 02-05 of the New Hope Economic Development Authority
dated September 9, 2002 redesignating the Master Modification as
Redevelopment Project No. 1, restating and modifying existing
Redevelopment Plans, modifying existing Tax Increment Financing Districts,
creating Tax Increment Financing District No. 02-1 and adopting a Tax
Increment Financing Plan relating thereto;
2. Resolution No. 02-132 of the New Hope City Council dated September 9,
2002 redesignating the Master Modification as Redevelopment Project No. 1,
restating and modifying existing Redevelopment Plans, modifying existing Tax
Increment Financing Districts, creating Tax Increment Financing District No.
02-1 and adopting a Tax Increment Financing Plan relating thereto;
3. Tax Increment Financing Plan for Tax Increment Financing District No. 02-1;
4. Restated Redevelopment Plan for Redevelopment Project No. 1;
5. Original Certification Request Supplement;
6. two (2) Certificates as to original Tax Capacity (please return one executed
copy);
7. two (2) Certificates as to original Tax Rate (please return one executed copy);
and
Suite 1100 Southpoint Office Center
1650 West 82nd Street, Minneapolis, Minnesota 55431-1447
Telephone 952.885.5999 Facsimile 952.885.5969
Website www.krassmonroe.com
8. two (2) Certificates of Filing (please return one executed copy).
Please call if you have any questions regarding these documents.
Sincerely,
KRASS MONROE, P.A.
E��=/'o .,
Mary E. Molzahn
Senior Development Analyst
cc: L-�irk McDonald, City of New Hope
G: \WPDATA \N \NEW HOPEMUIRSTATE TRANSW7AL.DOC
KRASS MONROE, P.A.
- A T .' -., 0 R N E Y S A T L A W
November 20, 2002
Ms. Jonetta Williams
Minnesota Department of Revenue
Department of Revenue Building
Mail Station 7100
St. Paul, MN 55146 -7100
Re: City of New Hope- Tax Increment Financing District No. 02 -1
Dear Ms. Williams:
Enclosed please find the following:
1. Resolution No. 02 -05 of the New Hope Economic Development Authority
dated September 9, 2002 redesignating the Master Modification as
Redevelopment Project No. 1, restating and modifying existing
Redevelopment Plans, modifying existing Tax Increment Financing Districts,
creating Tax Increment Financing District No. 02 -1 and adopting a Tax
Increment Financing Plan relating thereto;
2. Resolution No. 02 -132 of the New Hope City Council dated September 9,
2002 redesignating the Master Modification as Redevelopment Project No. 1,
restating and modifying existing Redevelopment Plans, modifying existing Tax
Increment Financing Districts, creating Tax Increment Financing District No.
02 -1 and adopting a Tax Increment Financing Plan relating thereto;
3. Tax Increment Financing Plan for Tax Increment Financing District No. 02 -1;
4. Restated Redevelopment Plan for Redevelopment Project No. 1;
5. Certification Request Supplement; and
6. two (2) Certificates of Filing (please return one executed copy).
Please call if you have any questions regarding these documents.
Suite 1100 Southpoint Office Center
1650 West 82nd Street, Minneapolis, Minnesota 55431 -1447
Telephone 952.885.5999 Facsimile 952.885.5969
Website www.krassmonroe.com
Sincerely,
KRASS MONROE, P.A.
Mary E. Molzahn
Senior Development Analyst
cc: VKirk McDonald, City of New Hope
GAWPDATAWNEW HOPE WTIRSTATE TRANSWTALDOC
April 28, 2004
Mary E. Molzahn
Senior Development Analyst
Krass Monroe, P.A.
8000 Norman Center Drive Suite 1000
Minneapolis, MN 55437 -1178
Dear Ms. Molzahn:
Enclosed is the Certification as to Original Tax Capacity and Original Tax Capacity Rate of Real
Property in the Tax Increment Financing District as follows, in the City of New Hope:
Special Legislation Redevelopment Tax Increment District No. 03 -1 (County No. 1610)
Original Tax Capacity: $25,203 Original Tax Capacity Rate: 138.2090%
Attached to the Certification, and identified as Exhibit A, is a list of the parcels of real property
comprising TI District 1610, and the Estimated Market Value and Original Tax Capacity determined
for those parcels as of January 2, 2003, this being the estimated market value most recently certified
by the Commissioner of Revenue as of April 28, 2004, the date when certification request was
received.
Sincerely,
4 �
Jean M. Bierbaum, Senior Administrative Assistant
Administrative Services Division
Cc Kirk McDonald, City of New Hope, 4401 Xylon Avenue North, New Hope, MN 55428
Cer116102004
An Fquol Opportunity Employer
Recycled Paper
STATE OF MINNESOTA}
}ss
COUNTY OF HENNEPIN}
CERTIFICATION AS TO ORIGINAL TAX CAPACITY AND ORIGINAL TAX CAPACITY RATE OF
REAL PROPERTY IN SPECIAL LEGISLATION REDEVELOPMENT TAX INCREMENT
FINANCING DISTRICT 03 -1 (COUNTY NO. 1610) IN THE CITY OF NEW HOPE.
I, the undersigned, being duly deputized by the Director of the Taxpayer Services
Department of Hennepin County, Minnesota, hereby certify to the City of New Hope, in
accordance with the request of said Authority and pursuant to the provisions of Minnesota
Statutes, Section 469.177, Subdivision 1, that the original tax capacity of all real property in the
Special Legislation Redevelopment Tax Increment Financing District No. 03 -1 (1610) is $25,203,
and the Original Tax Capacity Rate is 138.2090 %.
I also certify that the foregoing original tax capacity is composed of the tax capacity of
each parcel of real property within the above designated Tax Increment Financing District as
determined by the assessment as of January 2, 2003, this being the estimated market value most
recently certified by the Commissioner of Revenue as of April 28, 2004, the date when the
certification request was received.
I also certify that attached hereto as Exhibit A and made a part of this certification is a full,
true and complete list of all parcels of real property comprising the Special Legislation
Redevelopment Tax Increment Financing District No.03 -1 (1610) and of the original tax capacity
determined for each parcel and included in the aggregate amount stated above.
WITNESS my hand and official seal this April 28, 2004.
(SEAL) 4a . �� ✓�
Aea . Bierbaum, Senior Administrative Assistant
er Se rvices Department, Hennepin County
(cer16102004)
Base Year 2003 EXHIBIT A Certification Request Received
1st Collection 2005 TIF DISTRICT 1610 Certification Date:
Type Redevelopment NEW HOPE Page 1 of 2
Fiscal Disparities' Clause (a) No. 03 -1 (Special Law)
BASE 2003 FROZEN
Property HS Taxing TAXABLE MARKET VALUE: Home- Non -Home
Type Code District Property ID Number Land Building Total Stead Stead Total
The following parcels, including adjacent streets and rights -of -way:
5524 Winnetka Ave N
R
N
281/0/02
05- 118 -21 -33 -0002
Exempt Code E
$0
0
5500 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0003
$42,100
$85,400
$127,500
1,275
1,275
5506 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0004
$42,600
$117,000
$159,600
1,596
1,596
5400 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0005
$41,400
$73,400
$114,800
1,148
1,148
5512 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0006
$37,500
$52,200
$89,700
897
897
5540 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0007
$36,300
$113,200
$149,500
1,495
1,495
5406 Winnetka Ave N
LR
N
281/0/02
05- 118 -21 -33 -0008
Exempt Code E
$0
0
5412 Winnetka Ave N
LR
N
281/0/02
05- 118 -21 -33 -0009
Exempt Code E
$0
0
5410 Winnetka Ave N
LR
N
281/0/02
05- 118 -21 -33 -0010
Exempt Code E
$0
0
5420 Winnetka Ave N
LR
N
281/0/02
05- 118 -21 -33 -0011
Exempt Code E
$0
0
No Address
LR
N
281/0/02
05- 118 -21 -33 -0012
Exempt Code E
$0
0
5422 Winnetka Ave N
LR
N
281/0/02
05- 118 -21 -33 -0013
Exempt Code E
$0
0
5434 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0014
$39,200
$58,900
$98,100
981
981
5440 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0015
$42,600
$111,100
$153,700
1,537
1,537
5446 Winnetka Ave N
R
H
281/0/02
05- 118 -21 -33 -0016
$40,600
$94,600
$135,200
1,352
1,352
5518 Winnetka Ave N
R
N
281/0/02
05- 118 -21 -33 -0017
Exempt Code E
$0
0
5532 Winnetka Ave N
LR
N
281/0/02
05- 118 -21 -33 -0018
Exempt Code E
$0
_0_
5550 Winnetka Ave N
C
N
281/0/02
05- 118 -21 -33 -0019
Exempt Code E
$0
0
7809 Bass Lake Road
C
N
281/0/02
05- 118 -21 -33 -0020
$75,000
$95,000
$170,000
2,650 2,650
7801 Bass Lake Road
C
N
281/0/02
05- 118 -21 -33 -0021
$57,000
$174,000
$231,000
3,870 3,870
C
N
281/0/02
05- 118 -21 -33 -0021
Exempt Code E
5537 Sumter Ave N
R
H
281/0/02
05- 118 -21 -33 -0022
$39,200
$81,800
$121,000
1,210
1,210
7643 Bass Lake Road
R
H
281/0/02
05- 118 -21 -33 -0023
$41,900
$90,100
$132,000
1,320
1,320
5538 Sumter Ave N
R
H
281/0/02
05- 118 -21 -33 -0024
$40,000
$79,600
$119,600
1,196
1,196
5546 Sumter Ave N
R
N
281/0/02
05- 118 -21 -33 -0025
Exempt Code E
$0
0
5531 Sumter Ave N
R
H
281/0/02
05- 118 -21 -33 -0026
$42,000
$87,300
$129,300
1,293
1,293
7621 Bass Lake Road
LR
N
281/0/02
05- 118 -21 -33 -0027
Exempt Code E
$0
0
Continued...
EXHIBIT A - New Hope Page 2 of 2
TIF DISTRICT 1610
OW
Property HS Taxing TAXABLE MARKET VALUE: Home- Non -Home
Type Code District Property ID Number Land Building Total Stead Stead Total
7615 Bass Lake Road
C N 281/0/02 05- 118 -21 -33 -0028 Exempt Code E $0 0
5530 Sumter Ave N
LR N 281/0/02 05- 118 -21 -33 -0029 Exempt Code E
FROZEN TAX RATE 138.2090%
Prepared 4/28/2004 by Hennepin County Taxpayer Services Department tfcr16102004
No Address
LR
N
281/0/02
05- 118 -21 -33 -0081
Exempt Code E
$0
0
5559 Sumter Ave N
LR
N
281/0/02
05- 118 -21 -33 -0082
Exempt Code E
$0
0
No Address
LR
N
281/0102
05- 118 -21 -33 -0083
Exempt Code E
$0
0
5520 Sumter Ave N
R
N
281/0/02
05- 118 -21 -33 -0085
Exempt Code E
$0
0
7603 Bass Lake Road
LR
N
281/0/02
05- 118 -21 -33 -0087
Exempt Code E
$0
0
7605 Bass Lake Road
R
H
28110/02
05- 118 -21 -33 -0088
$37,000
$51,400
$88,400
884
884
7609 Bass Lake Road
R
H
281/0/02
05- 118 -21 -33 -0089
$39,200
$73,900
$113,100
1,131
1,131
7601 Bass Lake Road
R
H
281/0/02
05- 118 -21 -33 -0091
$43,200
$93,600
$136,800
1,368
1,368
5340 Winnetka Ave N
LR
N
281/0/02
08- 118 -21 -22 -0001
Exempt Code E
$0
0
TOTAL DISTRICT:
$736,800 $1,532,500
$2,269,300
18,683
6,520 25,203
FROZEN TAX RATE 138.2090%
Prepared 4/28/2004 by Hennepin County Taxpayer Services Department tfcr16102004