HomeMy WebLinkAbout2007 04-23 500 CMWAGENDA
CITY COUNCIL/MANAGER WORKSHOP
Monday, April 23 2007
Council Chambers, City Hall
5:00 P.M.
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. NEW BUSINESS
1. TIF Application for Dabar Co.
E. ADJOURNMENT
CMW
AGENDA REPORT
TO: Greg Copeland, City Manager
FROM: Charles Ahl, Public Works Director /City Engineer
Robert Mittet, Finance and Administration Manager
SUBJECT: Gladstone Area Redevelopment, City Project 04 -21,
5:00 pm - Work Shop Report on Tax Increment Financing
DATE: April 18, 2007
INTRODUCTION /SUMMARY
This report will be made by a representative from Spingsted, Inc. on the request from DaBar, Inc. and
Walker Methodist for the development called Lake Phalen Estates as part of the Gladstone — Phase I
Development. The City Council received the Tax Increment Financing {TIF} Application from DaBar on
February 5, 2007 and directed that Springsted review the TIF information and report on the findings and
process for TIF use on this development and the benefits to the City. Mikaela Huot, an Assistant Vice
President at Springsted, and Terri Heaton, Client Representative, will present the findings of the TIF
investigation. Mary Ippel, attorney from Briggs & Morgan will also be available for questions. No action is
proposed as part of this Work Shop; however, staff is recommending that action on the TIF request be
taken as part of the regular meeting later in the evening. This is required if the Council wishes for this first
phase of the development within Phase I of Gladstone proceed on schedule. Representatives from DaBar,
Inc. and Walker — Methodist will be present and will attest their project needs.
Background
The request for TIF assistance was made by DaBar on January 15, 2007, a copy of that application is
attached. The developer's request was for $2,000,000 in present value dollars as support for the project.
Their request was for an annual payment over 15 years that would be equivalent to receiving $2,000,000 in
2007. Springsted analyzed that request and determined an annual reimbursement to the developer of
$289,712. They estimated that the property would produce annual property taxes of $340,385 of which
$105,118 would be taxes payable to the City.
The attached information and memoranda from Springsted are supporting data for the analysis. This
analysis was based on data provided by DaBar and Walker- Methodist. During the analysis process,
Springsted and staff explored the extent of this partnership in the development to be called Lake Phalen
Estates. This is an important consideration in that the developer, DaBar Companies, would be an equity
investor and not extracting fees, including TIF payments from the project and leaving after a couple of
years. It appears from the analysis that any TIF payments may be split between this partnership. If a
decision is made to proceed, this provision of the partnership and TIF payments needs to be explored and
the nature and term of the partnership /relationship will become an important component of any TIF
agreement with the developer and operator.
Springsted Analysis
The developer and operator have reported that the Lake Phalen Estates project has been pared down from
the January application when the total cost was $38.65 million to the current estimate of $36.11 million.
The developers report that this is due to cost controls necessary to make the project profitable and to limit
the extent of TIF required for the project. As part of the Springsted attachments used for this analysis a
projected internal rate of return was determined. This analysis is the basis for determining if the `but -for'
test can be determined. This is not a `black and white' determination but is based on an understanding of
what a development will proceed with under existing development standards. The attached information
CMW
indicates that the development without TIF will produce an internal rate of return below 15 %. This
developer indicated that they would not proceed without an internal rate of return that exceeds 15 + %.
The developer contends that 9 of 10 developers would not proceed at this level. As noted in the report, the
level of equity is just over 20 %, which requires investors to provide for nearly 80% of the project costs.
This is also reported as a typical level of mortgage involvement. Based on what the Developer has said, it
appears that without TIF assistance, this development will not proceed. Council understanding and
agreement on this issue is necessary to allow the project to proceed with determination of TIF assistance.
Assuming that there is agreement that the `but -for' test has been passed, then a determination of the
appropriate level of development support is necessary. Springsted analyzed the developer's request of
$2,000,000. They indicated that many TIF projects provide for internal rate of returns that approach 20 %,
depending upon a multitude of factors, so this TIF support is minimal. This may give the Council some
assurance that the TIF money is necessary for the project and not providing for a fast payment to the
developer.
Discussion
There are a number of additional assumptions and considerations that will be presented by Mikaela Huot
and Terri Heaton from Springsted about their analysis. The Council may wish to consider the status of the
development and the need for improvements in the area. Springsted earlier indicated that the City may not
wish to consider TIF assistance to this development if this was Year 5 of a successful re- development
process. In that case, we could be very selective and require developers to take much greater risks. The
development would be attractive and would allow for greater investment risks by the development
community. We are not at that point with Gladstone. This is our first project in the area and some city
assistance might be necessary to make this first project a success to help attract future projects.
A second scenario can be considered: `what would the development look like without TIF assistance ?'.
DaBar and Walker- Methodist were asked this question, and after indicating that they likely could not or
would not proceed, they indicated that the project would have difficulty in being marketable because the
following would be revised:
• Elimination of much of the Community Space
• Removal of exterior brick and replaced with vinyl siding
• Removal of most of the site trails
• Little downsizing of rooms could be accomplished as they are already minimally -sized
• Reduce the underground parking
• Reduce the impervious pavement and green building components
• Reduce the extent and level of landscaping and plantings
Many of these items are Council goals for the development and may not be provided without the
development support through TIF assistance. The decision on TIF assistance is based upon the Council's
feeling of support for the project and for this development team. An argument can be made that the
request does pass the `but -for' test, given what the Developer has represented to us. If the Council agrees,
then a level of assistance in the range of the $2,000,000 may be appropriate to achieve the project goals
and to successfully start this project. The developer reports that with timely approvals, they would start
construction in September 2007 and have the structure framed prior to snowfall in late 2007. This could be
a good start for our Gladstone initiative and provide support for future area projects.
City Benefit
If TIF assistance is provided to the developer, the process also allows the City to capture a portion of
increment toward improvements that otherwise would be paid from other sources such as general levy and
city -wide fees. Preliminary information from Springsted indicates that the City improvements could benefit
from this TIF District, the amount of which will be presented in the Springsted memo. It is likely that
CMW
agreements with the developer will allow the City to capture this TIF along with other fees and financing
sources to add about $1.8 million of improvements to the $3.15 million in improvements coordinated with
the LCDA grant. Thus the total improvements within Phase I Gladstone could approach $5.0 million. This
entire project of $5.0 million could be accomplished without a need for city -wide fees or levy charges, other
than capturing the TIF from the Lake Phalen Estates District.
Other options
Staff also investigated the potential use of tax - exempt revenue bonds for financing this project instead of
TIF support. The inclusion of the developer in the ownership of the project, however, rules out use of this
financing mechanism. A provision should be added to any TIF contracts that would preclude a `double -
taking' of funds should this project become an exclusive tax - exempt project allowing for tax - exempt bonds.
Conclusion
It is the staff conclusion that TIF assistance of approximately $2.0 million in a pay -as- you -go approach that
limits the risk to the City, combined with the capture of additional increment to be dedicated to public
improvements within the Phase I Gladstone area could be considered for this development. The
Developer has provided information that has been analyzed by the City's financial consultant, Springsted,
Inc. The Lake Phalen Estates development appears to achieve many of the Council goals for the project
area, including green development, assisted living, senior - assisted living, underground parking, and quality
development standards. The risk to the City can be established at a minimal level due to the pay- as -you-
go approach which will provide the developer with an `up -to- maximum' amount of tax increment assistance,
such that if the developer fails to improve the site to acceptable standards and fails to increase the property
values, that only the amount of increment generated will be paid to the developer /operator each year. And
finally, the developer may have a partnership (that needs to be explored further) established with a
reputable operator in Walker- Methodist, who may have an equity stake in the development providing that
the TIF assistance is supportive of the City goals and not as a developer subsidy. For these reasons, staff
has concluded that the project should proceed to a public hearing based upon TIF assistance to the
development.
Next steps
The development is planned to be presented to the Planning Commission on May 21S and the Community
Design Review Board on May 22n Final presentation of the development is expected to the City Council
on June 11 This TIF process requires that the Council direct the preparation of a TIF Plan, including
establishing the area of the TIF District and holding a public hearing. It would seem appropriate that the
TIF Public Hearing be held on the same date of the development plan consideration. The TIF process
requires approximately 45 -60 days to complete, so action is required at this meeting, April 23` to allow for
the TIF Public Hearing to be held on June 11 The developer has indicated that they can not proceed with
final plan preparation in readiness for a September 2007 project start until the TIF decision is made. This
is not the Council's final approval of TIF, but is a major step in indicating the intent to provide assistance. A
public hearing should probably not be called if TIF assistance is not being considered.
RECOMMENDATION
There is no action required by the City Council as part of this work shop, although Council action is
proposed to adopt a resolution directing the preparation of a TIF Plan for the establishment of a TIF
District, and to set a Public Hearing for the June 11 City Council regular meeting.
Attachments:
1. Springsted Financial Analysis
2. Project Timeline for Program steps
3. DaBar TIF Application
4. Lake Phalen Estates Preliminary Plans
P
SUBJECT: Lake Phalen Estates Request for Financial Assistance — Discussion Items
o 180 — Unit senior assisted living facility
o Sources and uses provided by developer:
p An annual management fee of 6% of operating income or $72,000, <.. ®e is greater, is included in
project pro-forma, we have requested additional information from Walker Methodist, at::
o this fee is
paid t4 , and for 24 t service provided,
City of Maplewood, Minnesota
Lake Phalen Estates IRR Analysis
April 9, 2007
Page 2
o Annual inflation rates of 3 %,as provided by developer, applied to both revenues and expenditures
o Developer request for $2,000,000 pay -go note over a 15 -year term, present value amount when discounted
at 7.5 %. This would be an annual reimbursement of TIF, and would not be used for up -front project costs.
o Total annual property tax costs of $340,385, annual projected TIF revenue available for developer
reimbursement of $289,712. The City portion of the total property tax costs is $105,118.
o Projected Internal Rate of Return without the use of TIF is 14.03%
o Projected Internal Rate of Return with the use of TIF is 15.62%
Maplewood Tourist Cabin Senior Living TIP Project OPPFI .-a,
INTERNAL RATE OF RETURN ANALYSIS - Without Assistance
CONSTRUCTION SOURCES & USES
Sources of Funds
Total
Useol Funds
a'. 23,800,000
Total
First Yunnan, Amor
79.75 %'0 28,800,000
Land Acquisition
.rs%
3,520,685
Financing Costs
Tote C '
U �
New Cenatrue6on
7asei"
25.0.19267
Equity
2o a-, 7.313,891
Soft Cost
17.1
6,284,265
106,452
228,281
Developer Fee
z.4sv"
869,674
353 3793
214. 071.269
660,551
o.oa
0
2,479,102
5,712,555
7496.233
"
0
8.274,439
? :4 . 00 ..83693.332
8,910.665
a.,
l.ov
0
0
0
0 0
0
TOTAL
36113,891
TOTAL
0
36,773,891
Pro Forma Analy
REVENUES
Potential Gross Apartment Rent
Potential Gross Commercial Rent
= Potential Gross Income
Vacancy
Add TIF Reimbursement
Effective Gross Income
EXPENSES
Ad Inistnative
Real Est to Taxes
F tlS
H sek ep g
R d t S Ices
Actink
T p rt tan
En9 veer ng
Utilities
Market ng
Sum of All Expenses
= Net Ooeratina Income
Less Debt Sery ce Payments
Interest Expense
PrnGpa Payment
Total Annual Debt Sery ce
= Cash Ft..
= Net Cash Flow
+ EQUITY CONTRIBUTION
+ EQUITY REPAYMENT- PERMANENT FINAI
+ NET SALE PROCEEDS .�
= NET EQUITY CASH FLOW
CUMULATIVE EQUITY CASH FLOW
ANNUAL RATE OF RETURN
2.50% Infldnnn Revenues and Expenses
PERMANENT SOURCES & USES
Sources of Funds
Total
First Mortgage
a'. 23,800,000
Equity
20% 7,313,891
TOTAL
36.113,891
3,433977
IRR Celculafion A111 --tons
Use of Funds
Tote C '
U �
Repay Constructor, Lean
28¢17C;Q�70
Eaul
20 c', ,� 7 3''1 8 891
TOTAL
',2'�3,tt3,89t
T
T ii r
� Y +
AN
Annual Cash on Cash Return
-35. W 155 1 311 X5;6'0%
17.15%
16,47% 19,82% 21,21%
22.64% 24.10% 25.59% 27.13%
NOI Year 2017 4.258.309
First FUMY 6t 1
3,433977
IRR Celculafion A111 --tons
2.372,650
5,464,274
7,176 089
7,355,491 7,539,379
7,727,863
7,921,0811
119,086 8,G' 2'
8,530,115
8,743.368
106,452
228,281
320,144
328,14B 336
344
353 3793
214. 071.269
660,551
390.064
2,479,102
5,712,555
7496.233
7683,639 7, 875,730
8,072,623
8.274,439
? :4 . 00 ..83693.332
8,910.665
9,133A32
l.ov
0
0
0
0 0
0
0
D 0
0
0
c
0
0
0
0 0
0
0
j1 0 0
0
0
2,479.102
51712,555
7,496,233
7 .683,639 7,875,734 5 0 2
4,439
8,481,300 7 ftZRN,'3 32
8,910,665
9,133,432
812,083
1,053,130
1,173,351
1,202,685 1,232 762
*i 1
1 278; Sri U
9u27 39 1 360 n..
7,394.746
1,42 &64
11571
295,227
340,385
449,336
340,385
535,062
340,385 34038
548,439 562 150
L�171
`� 5
3
340,398 40's85
5$4j6ri9 A20,508
340,385
636.G21
340,385
651,921
98,294
137,751
161,629
165.670 169
7
17$j498
_
1 E! 1 787440
192,126
196.929
669,843
969,896
1,003706
JX T004SZ1
t fS84 S
t 1jk 10`tl6
1.135,503 1`1,'163.994
1,193,093
1,222.921
80,100
82,103
8415 1 88,415
`21 tJ2.891
95,214 97,594
100,03-0
102,535
51,520
52
5321`'
. i „1�.` 1 5,ry 55
6Y 6B
58,742
60,210 61,715
63.258
64,540
72,360
318,406
95, 579
326,366
114,56$
3325,
11743' p" ?120,369
342 888 '-- 51,460
12358
360 2Q7
126,463
369,253
129,624 132,865
378,484 387 946
136,187
397,645
139,591
407,586
316,400
264200
'�
268196 ,74,901
28174 A +�
% 288818
296,039 303,440
311,026
318801
2,825,804
3,771,146
A
4,155303 .%4; 250,676
4,348,433 «at.'.
448,634
4,551,340 4,656,614
4,764,520
4,875,123
T " , +
7J;
1,941,4Q9
aq,433,977
3.528336 �8,625,OSA
3,724190 ;��' 8$25,504
3.929,959 4,036,718
4,146,145
4,258,309
IM t "11
2,27-0,292
2,274,292 J
2.214 274,292 2,274,292
2,274,292
2,274,292
2,274,292 2.274,292
2,274,292
2,274,292
''
1,1506$ '.3 254.044 1,350,7621
1,449,898
1,551,512 1
1,6ln, 1,762,425
1,871,853
1,984,016
Ai-
,667
9685
1.2PN .44 1,350,752
1,449,698
1,551,512
1,655.667 1,762,425
1,871,653
1,984.016
�Ea
``kY.,
i. 1,
21,238379
3 -2
1 $;i
1254044 1,360762
1,449898
1,557512
1,655867 1762425
1,871,853
23.222,395
T;7
N,934,8
ile" 7 Cu
(.1 �,
17,854.1.41. (6.50 :1)
5,0533£17
3aJ'..859)
,'346203) {63,777!
1,788,075
25,010.470
a
-4.55k
1
17.15/ 18.47/
1982%
21,21%
2264% 24.10%
25.59%
2713%
Annual Cash on Cash Return
-35. W 155 1 311 X5;6'0%
17.15%
16,47% 19,82% 21,21%
22.64% 24.10% 25.59% 27.13%
NOI Year 2017 4.258.309
First FUMY 6t 1
3,433977
IRR Celculafion A111 --tons
A o a 9a
Estimated Cap Rate &5a ° lo
Total De p lPxoS iPny9�
36,113 891
Flna crag Rate
9.001 R 8.74%
Fe, Ma ket Value 550.097,748
Return on lnvestmenE'J` «
95%
Reinvestment Rate
5.00% wbw nw a., v,...o.rb✓ey ,ae.Nr
Cost of sale 0.00/
vjfj
P 1-lal Reparn," r`u * 5.'-a
Added Value none TIF 50
Rep�erent rho prssanr value cakukh'ono(.t ramanexgbyea+s orl)Fr=rr;burrernenr
peyrtranrs (Liscounretl
at fi96 �etej
Net Sale Proceeds 521238379
M.pF —O.d tourist Cabin Senior LM io TIF Ptoject
INTERNAL RATE OF RETURN ANALYSIS.- With AssiStance
Lake Phalen Estates
The following properties were used to determine the revenue structure:
Independent
Commons on Marice
Regent at Burnsville
Chandler Place
The Colony
Edina Park Plaza
The Wellington
Boutwells Landing
Assisted Living
Commons on Marice
Regent at Burnsville
The Rivers Manor
Jones Harrison
Walker Elder Suites
The Wellington
Sunrise of Roseville
Boutwells Landing
Memory Care
Eaglecrest Arbor
Roitenberg Memory Care Pavilion
SummerWood of Plymouth
Care Suites
Walker Elder Suites
Rents and fees were adjusted for inflation from the 2005 -2006 Senior Housing Directory
to 2009 -2010 when the property opens.
The expenses are based on the performance of Walker properties. We do not have a like
project. Therefore, expense history from various properties were used as appropriate.
APPLICA'T'ION AND AGREEMENT FOR
TAX - INCREMENT FINANCING
Return to: Community Development Dept.
City of Maplewood
1830 County Road B East
Maplewood, MN 55109
651- 249 -2300 Fax: 651-249-2319
APPLICANT
OFFICE USE
Date received:
By:
Rec. #: Date
Applicant/business name: DaBar Co. L.L.C.
Contact person: Bart Montanan
Address: 13481 60 St., Oak Park Heights, MN Zip 55082
Telephone: (Work) 651- 439 -2772 (Home) CELL 651- 775 -3278
Fax: 651- 439 -2068
Interest in the property: Owner
2. Applicant's legal counsel: Hammargren & Meyer, P.A.
Address: 7301 Ohins Lane, Suite 360 Minneapolis, MN Zip 55439
Telephone: (Work) 952- 884 -9033 (Home)
Fax: 952- 224 -2923
Applicant's architect: WAI Continuum
Address: 381 East Kellogg Blvd., St. Paul, MN Zip 55101
Telephone: (Work) 651- 227 -0644 (Hoene)
Fax: 651- 223 -5092
4. Applicant's contractor (if selected): WEIS Builders
Address: 7645 Lyndale Ave S. Minneapolis, MN Zip 55423
Telephone: (Work) 612 -243 -5000 (Home)
Fax: 612- 243 -5010
Property owner(s) of record: St. Paul Cabins L.L.P.
Address: 2501 Lowrey Ave. NE St. Anthony, MN. Zip 55418
Telephone: (Work) 612- 708 -8266 (Home)
Fax: 612- 788 -1806
6. Applicant's business form (corporation, partnership, sole proprietorship, etc.) and state of
incorporation or organization: MN L.L.C.
7. If the applicant is a corporation, list the officers, directors and stockholders holding more
than 5% of the stock of the corporation. (State name, address, telephone and relationship
to the applicant. If a corporation is not foi set forth as much data as possible
concerning the potential officers, directors and stockholders): New L.L.C. to be created
for this project. Currently looking into the use of the name Lake Phalen Estates L.L.C.
1
If applicant is a general partnership, list general partners and if a limited partnership, list
general partners and limited partners with more than 5% interest in the limited
partnership: (If the partnership is not folnned, set forth as much data as possible
concerning the potential partners): Bart Montanari C.E.O. of DaBar Companies L.L.C.
9. List any other cities that you have applied to for tax - increment financing within the last
five years: None.
10. Has the applicant ever been in bankruptcy? If yes, describe circumstances: No.
11. Have you ever defaulted on any bond or mortgage commitment? If yes, describe the
circumstances: No.
PROJECT
Project name: Lake Phalen Estates
2. Legal description of the site:
Property Identification Number (PIN) 16.29.22.31.0024
Property Address 940 Frost Ave E, Maplewood 55109 -4258
Legal Description Part Of Govt Lot 2 Dese As Beg At Int Ofwl Of E 10 Ac Of W 20 Ac
With The Orig_ Sly R/w Line Of Frost Ave Th S 27 Deg 06 Min E 811.06 Ft To El Of W
20 Ac Th E Along N R/w Line Of E Shore Dr To Wly R/w Line Of Frost Ave
Connection As Descin Doc #1999021 Th Nly Along g d Wly R/w Line To The Orig Sly
R/w Line Of Frost Ave Th Swly Along Sd Sly R/w Line To Beg (subj To Ave) In Sec 16
3. Describe the project as proposed, i.e. how many housing units, type (rental or owner
occupied), how much connnercial square footage, etc.: The project will consist of 180
rental apartments exclusively serving the senior population of Maplewood. There would
be 100 units of independent living, 60 units of assisted living and 20 memory care units.
There the building contains a total of 293,500 square feet of space. What makes this
residence special for the city and the senior community at large is the amount of common
space at the "metaphoric" town center of the project. It will serve 3 meals a day for the
residents, contain a 24 hour deli, general store, bank, chapel, theater, library, staff,
recreation and fitness spaces. The amount of common space serving the senior residents
is approximately 40,000 square feet, which makes this a very service oriented residence
for seniors with needs for a higher quality of life. What makes it special for the
community at large is that the fitness and a large atg hering space are open for the public
to use upon reservation.
4. Will the applicant occupy the project after completion? If not, state name of future lessees
and status of commitments or lease agreements: The project will be owned and operated
by DaBar Co. L.L.C., but will be managed by Walker Methodist, one of the premier
names in Senior Care in the Midwest. Walker Methodist owns and operates over a 20
facilities in the United States and is based in
5. Estimated project costs:
a. Land acquisition:
$2,558,000
6.6%
b. Site development:
987,000
2.6%
c. Building cost (293,580SF @ $92 /SF): includes
city fees /demo /furnishing
30,096,680
77.9%
d. Equipment:
30,000
0.1%
e. Architectural /engineering fees / const mgmt
1,168,800
3.0%
f. Legal fees:
55,000
0.1%
g. Bond discount, fees to underwriter
0
0.0%
an d brokerage fees:
0
0.0%
h. Interest during construction:
1,119,000
2.9%
i. Off -site development cost: /engineering
coordination
20,000
0.1%
j. Initial bond reserve fund:
644,392
1.7%
k. Contingencies:
810,000
2.1%
1. Other: marketing
476,372
1.2%
m. Other: Community Outreach Spaces
500,000
1.3%
n. Other: Bus Stop
185,000
0.5%
TOTAL USES OF FUNDS
$38,650,244
100.0%
6. Financing:
a. Industrial revenue bonds:
$0
0.0%
b. Tax - increment:
2,000,000
5.2%
c. Equity:
3,865,000
10.0%
d. Other, i.e. bank financing, tax credit (please
"bank financing"
32,785,244
84.8%
- specify):
TOTAL SOURCES OF FUNDS
$38,650,244 1
100.0%
7. How will you use tax - increment funds? According to information prepared by
Short Elliott Hendrickson, Inc. submitted to the city on October 12, 2006 the St. Paul
Tourist Cabins site qualifies as a tax increment financing "redevelopment district"
pursuant to Minnesota State Statutes 469.174, Subdivision 10 which permits the use of
tax increments for a variety of redevelopment costs including, acquiring properties
containing structurally substandard buildings, demolition and rehabilitation of
structures clearing of the land, and installation of utilities, roads, sidewalks, and
parking facilities for the site. The Developer proposes that the city use tax
3
increment fiends to reimburse project redevelopment costs, including interest thereon on a "pay -
as- you -go" basis.
Current real estate taxes assessed for the project site: Total Property Tax + Special
Assessments $20,898
9. Estimated real estate taxes for the project site upon completion of project: $384,076
10. Date that the applicant expects tax - increment bond proceeds to be available to pay project
expenses: Not applicable. The developer proposes "pay -as- you -go" reimbursement for
eligible redevelopment costs.
11. Estimated date of construction: October 2007 Completion: Apri12009
12. Will any public official of the City, directly or indirectly, benefit from the tax - increment
financing for this project within the meaning of Minnesota Statutes, Section 412.311 or
471.87? If so, specify: No.
13. Is this a tax increment bond issue or pay -as- you -go financing? Pay-as-you-go financing_
FILING REQUIREMENTS
You must provide all of the following items with your application:
An application fee of $6,620. Make your check out to the City of Maplewood. This fee is
not refundable and is separate from the bond counsel's, City attorney's or closing fees.
2. A written opinion, with supporting justification, from an expert acceptable to the Director
of Community Development, to document that the development will not adversely effect
similar, existing developments. The Director of Commmunity Development may waive this
requirement if there are no similar developments in your area.
The city has undertaken extensive analysis of the Gladstone Neighborhood
Redevelopment Area, and determined that the redevelopment within this area including
senior housing, is not only appropriate but desirable; accordingly, the Developer is
requesting that the Director of Community Development waive this requirement.
A written statement supporting the statutory requirement that "but -for" the use of TIF on
this project, it will not proceed as planned.
The Developer has cominissioned a senior housing study identifying a need for senior
Assisted-living housing within the community. Due to costs associated with developing_
(particularly the extraordinary costs occurred in site redevelopment) marketing and
financing senior housing, market rate rents are insufficient to support a financially viable
4
project including a fair return on the Developer's investment. The proposed development
may achieve financial viability by combining private and public financial resources
including tax increment financing. Tax increment financing ensures that critical project
assumptions including rents, financing and financing costs and debt to equity ratios will
result in a financially viable project. The Developer's proposal to develop the property is
only feasible through assistance, in part from tax increment financing.
NOTES
The City charges an administrative fee of 5% of the annual tax - increment revenue.
2. If the project requires zoning or Community Design Review Board approvals, you must
make these applications before or concurrently with this request.
PROCEDURES
Return this application -to the Community Development Department.
2. The Director will schedule a public hearing with the City Council after preparing a report
and recommendation. The Housing and Redevelopment Agency will meet on this
application first if it is a housing project. The HRA will make a recommendation to the
City Council.
Concept approval by the City Council.
4. Preparation of the tax - increment plan by the City's financial advisor and bond counsel.
The City will not start preparing the tax - increment plan until we have completed all
zoning and Community Design Review Board approvals.
City Council decision on the tax - increment plan, following a public hearing.
The applicant enters into development and assessment agreements. The development
agreement will include a requirement that the applicant must guarantee debt service on
any tax - increment bonds if the tax - increments are not enough for such purpose. The
assessment agreement will include a minimum market value for the project after its
completion.
7. Issuance of the bonds, if any.
The City will notify you of all meetings.
AGREEMENT
I, by signing this application, agree to the following:
I have read and will abide by all the requirements of the City for tax - exempt financing. I
will commit all contractors, subcontractors and any other major contributors to the project
to all segments applicable to them. I am aware that failure to comply by myself or any of
the above can result in cancellation of the resolution.
2. The above infoiniation is correct.
M
I agree to pay all costs involved in the legal and fiscal review of this project. These costs
include the bond counsel and City Attorney, and all costs involved in the issuance of the
bonds to finance the project.
I understand that the City reserves the right to deny final approval, regardless of
degree of construction completed before application for final
Date
Forth Revised: 11/06
p /com_dvpt /word /app and agreement for tax - increment frnancing2006
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Tourist Cabin Site: Gateway to the Gladstone
Senior Living Community: managed by Walker Methodist
Tourist Cabin Site: Gateway to the Gladstone
Garage Plan
Tourist Cabin Site': Gateway to the Gladstone
Frost Ave
Independent Livi
First Floor Plan
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Tourist Cabin - Site: Gatewa
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Second Floor Plan
Tourist Cabin
Indepe
Third Floor Plan
Tourist Cabin Site: Gateway to the Gladstone
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Fourth Floor Plan
Tourist Cabin
Frost Avenue and Wetland Elevations
Tourist Cabin Site: Gateway to the Gladstone