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HomeMy WebLinkAbout2020-08-10 EDA Special Meeting PacketAGENDA MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 6:00 P.M. Monday, August 10, 2020 Held Remotely Via Conference Call Dial 1-888-788-0099 When Prompted Enter Meeting ID: 937 3704 6746 # No Participant ID, Enter # When Prompted A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES 1. January 13, 2020 Economic Development Authority Meeting Minutes E. PUBLIC HEARING None F. UNFINISHED BUSINESS None G. NEW BUSINESS 1. Resolution Adopting a Tax Increment Financing Plan for Tax Increment Financing District No. 1-14 2. Sale of Property at 1946 English St N a. Intent to Close Meeting (Minn. Stat. §13D.05 Subd. 3(c)) b. Term Sheet with Roers Investments, LLC 3. Call for EDA Meeting on August 24, 2020 H. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at the Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other's time keeping remarks brief, to the point and non -repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK A D3 MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY 6:30 P.M. Monday, January 13, 2020 City Hall, Council Chambers CALL TO ORDER A meeting of the Maplewood Economic Development Authority (EDA), was held in the City Hall Council Chambers and was called to order at 6:41 p.m. by President Knutson. B. ROLL CALL C a William Knutson, President Present Bryan Smith, Vice President Present Marylee Abrams, Secretary Present Kathleen Juenemann, Assistant Treasurer Present Sylvia Neblett, Treasurer Present APPROVAL OF AGENDA Commissioner Neblett moved to approve the agenda as submitted. Seconded by Commissioner Juenemann Ayes — All The motion passed. APPROVAL OF MINUTES 1. December 9, 2019 Economic Development Authority Meeting Minutes Commissioner Abrams moved to approve the December 9, 2019 Economic Development Authority Meeting Minutes as submitted. Seconded by Commissioner Juenemann The motion passed. E. PUBLIC HEARING None F. UNFINISHED BUSINESS None Ayes — Commissioners Abrams, Juenemann, Knutson and Neblett Abstain — Commissioner Smith — Due to not being present at the last meeting. January 13, 2020 Maplewood Economic Development Authority 1 EDA Packet Page Number 1 of 83 D3 G. NEW BUSINESS 1. Election of Officers Commissioner Juenemann moved to nominated Commissioner Knutson as President until the first meeting in 2021. Seconded by Commissioner Neblett Ayes — All The motion passed. Commissioner Juenemann moved to nominated Commissioner Smith as Vice President until the first meeting in 2021. Seconded by Commissioner Abrams Ayes — All The motion passed. Commissioner Abrams moved to nominated Commissioner Neblett as Treasurer until the first meeting in 2021. Seconded by Commissioner Juenemann Ayes — All The motion passed Commissioner Abrams moved to nominated City Clerk Sindt as Secretary until the first meeting in 2021. Seconded by Commissioner Neblett Ayes — All The motion passed Commissioner Juenemann moved to nominate Finance Director Paulseth as Assistant Treasurer until the first meeting in 2021. Seconded by Commissioner Neblett Ayes — All The motion passed City Manager Coleman reminded the commissioners a workshop with the Housing Economic Development Commission will be held on January 27, 2020 at 4:00 p.m. in the Council Chambers. H. ADJOURNMENT President Knutson adjourned the meeting at 6:50 p.m. January 13, 2020 Maplewood Economic Development Authority EDA Packet Page Number 2 of 83 F G1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date August 10, 2020 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Jeff Thomson, Assistant Executive Director PRESENTER: Jeff Thomson, Assistant Executive Director AGENDA ITEM: Resolution Adopting a Tax Increment Financing Plan for Tax Increment Financing District No. 1-14 Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ✓ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: The city has received an application from the property owner of Maple Ridge Center to establish a new Tax Increment Financing (TIF) district for the shopping center site. Recommended Action: Motion to approve the resolution adopting a Tax Increment Financing Plan for Tax Increment Financing District No. 1-14. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: The establishment of the TIF district and adoption of the TIF plan would not approve the use of TIF assistance for the project. The Economic Development Authority (EDA) will review an agreement with the applicant at a future meeting which would determine the amount and terms of any TIF assistance that is warranted for the project. Strategic Plan Relevance: ❑ Financial Sustainability ❑ Integrated Communication ✓ Targeted Redevelopment ❑ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt. The establishment of the TIF district and adoption of the TIF plan would give the city a tool to facilitate reinvestment in Maple Ridge Shopping Center which has a deteriorating condition and a significant amount of vacancy as a result of losing several anchor tenants. Background: Tax Increment Financing On July 22, 2019, the city adopted a modified enabling resolution for the Maplewood Economic Development Authority (EDA), which grants the EDA authority to use tax increment financing. Tax EDA Packet Page Number 3 of 83 G1 increment financing is a funding tool that takes advantage of the increase in property taxes that result from redevelopment. The increase in tax revenue is a result of the investment in the property and the resulting increase in taxes. TIF captures only the increase in taxes and not the current or base amount of taxes that are currently paid. The increment can be used by the EDA to repay debt or certain costs incurred by the city as a result of the development. For this application, the debt would be a note issued to the property owner for public improvement costs associated with the redevelopment project. The goals of TIF districts include spurring economic development and redevelopment, creating jobs, and removing blight. Application The city has received a TIF application from the property owner of Maple Ridge Center, SUSO 4 Mapleridge, which is managed by Slate Asset Management in Toronto, Ontario. SUSO would retain ownership of the property, and will have a lease with HyVee to locate a grocery store, liquor store, and new freestanding gas station and convenience store on the property. Under the terms of the lease between HyVee and the property owner, the owner is responsible for certain costs associated with the project. The application includes a request for TIF assistance for public improvements associated with the project, which include access and intersection improvements on White Bear Avenue and Gervais Avenue. The specific amount and terms of the assistance will be subject to a redevelopment TIF agreement between the EDA and the applicant. The assistance and agreement will be reviewed at a future EDA meeting and is not the subject of the current action by the EDA. TIF District and TIF Plan The resolution before the EDA would create a new redevelopment TIF district by adopting a tax increment financing plan. This plan outlines the district boundaries, objectives and policies, and the maximum budget for the district. As previously stated, it establishes the budget, but does not grant any specific TIF assistance or city financial obligations to support development within the district. The city's financial consultant, Jason Aarsvold with Ehlers, has prepared the attached memo with additional information on the TIF plan. Mr. Aarsvold will also be in attendance at both the EDA and city council meetings. Next Steps After approval of the TIF Plan by the EDA, the city council will need to hold a public hearing, which is scheduled for the regular city council meeting on August 10th. If approved by both entities, the TIF application and agreement which outlines the amount and terms of financial assistance will be reviewed at a future EDA meeting, which is tentatively scheduled for August 24, 2020. Attachments: 1. Resolution 2. Memo from Ehlers 3. Tax Increment Financing Plan EDA Packet Page Number 4 of 83 G1, Attachment 1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. A RESOLUTION ADOPTING A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-14 BE IT RESOLVED by the Maplewood Economic Development Authority as follows: Section 1. Recitals. 1.01. The Maplewood Economic Development Authority ("MEDA") has been established by the city of Maplewood (the "City") to promote development and redevelopment within Maplewood. 1.02. Under the terms of the modified enabling resolution adopted by the City on July 22, 2019, MEDA has all the powers and authority of an economic development authority under Minnesota Statutes, sections 469.090 through 469.1081 (the "EDA Act"), a housing and redevelopment authority under Minnesota Statutes, sections 469.001 through 469.047 (the "HRA Act") and of a city under Minnesota Statutes, sections 469.124 through 469.134 (the "City Development Districts Act"). 1.03. MEDA's goals include recognizing the practical impediments to development and redevelopment in areas of the community which are fully developed and offering public assistance for projects which advance its goals. 1.04. In order to promote development and redevelopment of the community, the City previously established Development District No. 1 (the "Development District") and adopted a Development District Program (the "Development Program") for same. 1.05. In response to a redevelopment proposal, MEDA authorized the preparation of a tax increment financing plan (the "TIF Plan") for Tax Increment Financing District No. 1-14 (the "TIF District"), which is contained in a document entitled "Modification to the Development Program for Development District No. 1 and Tax Increment Financing Plan for Tax Increment Financing District No. 1-14", dated August 10, 2020 and on file with MEDA. Section 2. Authority Approval. 2.01. Copies of the modified Development Program and the TIF Plan were transmitted to the board of Independent School District No. 622 and the board of commissioners of Ramsey County for review and comment and said public bodies were notified of the public hearing to be held on the modified Development Program and TIF Plan by the City on August 10, 2020. 2.02. MEDA finds that its objectives of encouraging development and redevelopment within the designated area of Maplewood will be advanced by adoption of the modified Development Program and the TIF Plan. 2.03. MEDA also finds that the modified Development Program and the TIF Plan are consistent with the City's comprehensive plan. 2.04. The TIF Plan is hereby adopted Section 3. Further Proceedings. EDA Packet Page Number 5 of 83 G1, Attachment 1 3.01. MEDA requests that the City hold a public hearing on the modified Development Program and the TIF Plan pursuant to Minnesota Statutes, section 469.175 and recommends that the modified Development Program and TIF Plan be approved by the City. 3.02. Upon approval of the modified Development Program and the TIF Plan by the City, MEDA's executive director is authorized and directed to request that the original tax capacity of the parcels within TIF District No. 1-14 be certified to MEDA by Ramsey County. Dated: August 10, 2020 William Knutson, President ATTEST: Melinda Coleman, Executive Director EDA Packet Page Number 6 of 83 G1, Attachment 2 E H L E RS MEMORANDUM TO: Jeff Thomson, Community Development Director FROM: Jason Aarsvold, Ehlers DATE: 8-4-20 SUBJECT: Tax Increment Financing (TIF) District 1-14 Approval Per your request, this memorandum is intended to summarize the actions by the EDA and City Council on August 10, 2020 related to establishment of TIF District 1-14. The specific action for August 10 is to hold a public hearing and consider approval of the TIF Plan and modification of Development District #1. The Development District is simply the geographic area within which TIF districts must be located. That boundary is currently coterminous with the City boundaries. Development District #1 is being modified by virtue of including a new TIF district. The TIF Plan for district 1-14 really is just the City's plan for the district. Its spells out the objectives and policies for the district, identifies the geographic boundaries, and sets the maximum budgetary authority for the district. This planning document simply allows for the creation of a new TIF district. Approval of the TIF Plan does not grant any specific TIF assistance to the property owner in the district. This is done by separate action entering into a specific TIF Agreement. TIF 1-14 is being established as a Redevelopment TIF District. The site qualifies as a Redevelopment TIF district per the inspection report completed by LHB, Inc. and included in the TIF Plan as Appendix D. The TIF Plan sets up the district for the maximum duration of 26 years to provide flexibility, although the anticipated obligations in the district are anticipated to be repaid much sooner than that. The maximum budgetary authority in the district just under $4.8 million. This is a maximum budget intended to provide flexibly. It includes 3% annual inflation and assumes the TIF district runs for the full 26 years, The actual assistance to the property owner is anticipated to be approximately $500,000. Based on current projections, this could be repaid within 8.5 years. The TIF Plan assumes Pay -As -You -Go assistance to the property owner. Pay -As -You -Go TIF requires the Developer to seek its own financing secured by all or a portion of the tax increments generated by the project. In this scenario, the City does not provide the funding up front, but enters into an agreement to provide tax increment payments from the increased taxes from the project up to a specific dollar amount over time, If tax increment is not sufficient to repay the property owner, the City does not make up the difference, The TIF plan also includes a 10% allowance for City administrative costs. This City can use this 10% to pay for any ongoing costs associated with administering the project in the District, It also provides for repayment of an interfund loan. This interfund loan is the mechanism to reimburse the City from tax increments for any expenditures incurred in connection with the TIF plan prior to receipt of any tax increment. BUILDING COMMUNITIES. IT'S WHAT WE DO. infonehlers-inc.com �,�, 1 (800)552-1171 www.ehlers-inccom EDA Packet Page Number 7 of 83 G1, Attachment 2 �EHLERS m PUBLIC FINANCE ADVISORS Next Steps If the TIF district is approved upon holding the public hearing on August 10, 2020, the next step would be to consider approving the TIF agreement granting assistance to the property owner. As currently planned, this TIF agreement would be considered by the EDA on August 24, 2020. TIF agreement approval will complete the EDA and City council actions necessary for this project. Staff and Ehlers will follow up with the administrative steps necessary and finalize remaining details. BUILDING COMMUNITIES, IT'S WHAT WE DO. E infW ehlers-inc.com %,, 1 (800)552-1171 ® www.ehiers-irc.com EDA Packet Page Number 8 of 83 ECONOMIC DEVELOPMENT & REDEVELOPMENT G1, Attachment 3 1,� MODIFICATION TO THE DEVELOPMENT PROGRAM Development District No. 1 IF_1►11112 TAX INCREMENT FINANCING PLAN Establishment of Tax Increment Financing District No. 1-14 (a redevelopment district) Maplewood Economic Development Authority City of Maplewood, Ramsey County, Minnesota Public Hearing: August 10, 2020 9 h, EHLE S ,�UBL IC FIr� NANCE _.. BUILDING COMMUNITIES. IT'S WHAT WE DO. C`'a inFo:aehlers inc.cam �, 1 (800) 552-1171 www.ehlers-inc com EDA Packet Page Number 9 of 83 G1, Attachment 3 Table of Contents Modification to the Development Program for Development District No. 1 ...................................3 Foreword................................................................................................................................... 3 Tax Increment Financing Plan for Tax Increment Financing District No. 1-14 ..............................4 Foreword................................................................................................................................... 4 StatutoryAuthority....................................................................................................................4 Statementof Objectives............................................................................................................ 4 Development Program Overview.............................................................................................. 4 Description of Property in the District and Property to be Acquired..........................................5 Classification of the District.......................................................................................................5 Duration and First Year of Tax Increment of the District...........................................................6 Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements.......................................................................6 Sources of Revenue/Bonds to be Issued..................................................................................7 Usesof Funds...........................................................................................................................8 Estimated Impact on Other Taxing Jurisdictions.......................................................................9 Supporting Documentation.....................................................................................................11 Administration of the District...................................................................................................11 Appendix A: Map of Development District No. 1 and the TIF District.....................................12 Appendix B: Estimated Cash Flow for the District..................................................................13 Appendix C: Findings Including But/For Qualifications..........................................................14 Appendix D: Redevelopment Qualifications for the District....................................................16 Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 10 of 83 E G1, Attachment 3 Modification to the Development Program for Development District No. 1 Foreword The following text represents a Modification to the Development Program for Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 1-14. For further information, a review of the Development Program for Development District No. 1, is recommended. It is available from the Community Development Director at the City of Maplewood. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 1. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 11 of 83 G1, Attachment 3 Tax Increment Financing Plan for Tax Increment Financing District No. 1-14 Foreword The Maplewood Economic Development Authority (the "EDA"), the City of Maplewood (the "City"), staff and consultants have prepared the following information to expedite the Establishment of Tax Increment Financing District No. 1-14 (the "District"), a redevelopment tax increment financing district, located in Development District No. 1. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.090 - 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Development District No. 1. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate redevelopment of the of the Maple Ridge Shopping Center in the City. The EDA intends to enter into an agreement with Suso 4 Mapleridge Limited Partnership as the owner of the mall property. Development is anticipated to begin in 2020. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 1. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. 1 and the District. Development Program Overview Pursuant to the Development Program and authorizing state statutes, the EDA or City is authorized to undertake the following activities in the District: 1. Property to be Acquired — Although not anticipated at this time, selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 12 of 83 G1, Attachment 3 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Description of Property in the District and Property to be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Please also see the map in Appendix A for further information on the location of the District. The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(x)(1). • The District is a redevelopment district consisting of 1 parcel. • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. • An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix D). Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 13 of 83 G1, Attachment 3 Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of 26 years of tax increment). The EDA or City elects to receive the first tax increment in 2022, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2047, or when the TIF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2020 for taxes payable 2021. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2022) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2021, assuming the request for certification is made before June 30, 2021. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2022. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 14 of 83 Project estimated Tax Capacity upon completion 497,409 Original estimated Net Tax Capacity 202,770 Fiscal Disparities 104,742 Estimated Captured Tax Capacity 189,897 Original Local Tax Rate 139.0240% Estimated Annual Tax Increment $264,002 Percent Retainted by the City 100% G1, Attachment 3 Pay 2020 Note: Tax capacity includes a 2% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $226,984. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TI F Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are shown in the table below: Tax Increment Interest TOTAL $ 4,357,496 435,750 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by pay-as-you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 15 of 83 G1, Attachment 3 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $3,020,064. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Uses of Funds Currently under consideration for the District is a proposal to facilitate redevelopment of the of the Maple Ridge Shopping Center. The EDA and City have determined that it will be necessary to provide assistance for the project(s) for certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. Land/Building Acquisition $ - Site Improvements/Preparation 2,000,000 Utilities 200,000 Other Qualifying Improvements 384,314 Administrative Costs (up to 10%) 435,750 PROJECT COSTS TOTAL $ 3,020,064 Interest 1,773,182 PROJECT AND INTEREST COSTS TOTAL $ 4,793,246 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 1, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the EDA or City may elect one of two methods to calculate fiscal disparities. The EDA will choose to calculate fiscal disparities by clause b (inside). Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 16 of 83 G1, Attachment 3 Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: Ramsey County City of Maplewood ISD 622 (North St. Paul -Maplewood -Oakdale) Ramsey County City of Maplewood ISD 622 (North St. Paul -Maplewood -Oakdale) Other 559, 761, 877 189,897 44,235,214 189,897 46,981,335 189,897 0.0339% 0.4293% 0.4042% 52.3020% 37.62% 189,897 $ 99,320 44.6460% 32.11% 189,897 84,781 32.5040% 23.38% 189,897 61,724 9.5720% 6.89% 189,897 _ 139.0240% 100.00% $ The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the Pay 2020 rate. The total net capacity for the entities listed above are based on Pay 2020 figures. The District will be certified under the Pay 2021 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $4,357,496; Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 18,177 264.002 9 EDA Packet Page Number 17 of 83 G1, Attachment 3 (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The probable impact of the District on fire protection is not expected to be significant Typically, rehabilitated and new buildings generate few calls, if any, and are of superior construction. Improved access will help better protect the new and existing buildings. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The impact of the District on public infrastructure is expected to be minimal. The development will require some upgrades to access points and controlled intersections. These improvements are contemplated as part of the overall project and will help mitigate traffic concerns. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. Sanitary sewer (SAC) and water (WAC) connection fees are yet to be determined. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,018,789; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,639,327; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 18 of 83 10 G1, Attachment 3 Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. (i) In making said determination, reliance has been placed upon (1) written representation made by the developer to such effects, (2) review of the developer's proforma; and (3) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the City Council resolution approving the establishment of the TIF District and Appendix C. (ii) A comparative analysis of estimated market value both with and without establishment of the TIF District and the use of tax increments has been performed. Such analysis is included with the cashflow in Appendix B and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. Administration of the District Administration of the District will be handled by the Community Development Director. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 11 EDA Packet Page Number 19 of 83 G1, Attachment 3 Appendix A: Map of Development District No. 1 and the TIF District Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 20 of 83 12 5 AI A , q n Appendix B: Estimated Cash Flow for the District Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 22 of 83 G1, Attachment 3 13 w Q w w� O N N 00 - --- O w 'N R N d � W Y > C > Ua T T T T T T cU _ N °0 °0 N N N N N V m r V O V V O M � U R N 00=N0N 0WCOVNNCOV Q R tl � � � O `c Qoo 0 O ~ U O Q 0 R VI G1, Attachment 3 � R a r- R 00 vi x 0 0 0 0 0 0 0 0 0 0 0 0 O 000 LO LO LO 0 L O LOO O LO 0 N N ON 0N0 w w� O N N 00 - --- O w 'N R N d N N N N N N 0 0 0 0 0 0 FM m > Ua T T T T T T cU _ N °0 °0 N N N N N V m r V O V V O M U o lfl N 00=N0N 0WCOVNNCOV �r 0 o O C NVQW R L0 V�� Wd) d d M V M OO L � `c Qoo 0 O R N N � a w w U O x 3 F W a` L C U N O Y N w m o `o ' Q R R d N _ U F Q o E E d U _ N m m Q^ () L 1 m Z 6 N m O 0 0 w -' 5 O O z 0 0 ww 0 0 R R R N O 00 t/1 00 00 M00 3 Q N O O to O V O O (6 O O ,p O O � Y! 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Finding that Tax Increment Financing District No. 1-14 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of one parcel and existing right-of-way, with plans to redevelop and reposition the Maple Ridge Shopping Center Parcels consisting of 70 percent of the area of the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix D of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 1-14 permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcel currently occupied by a substandard building, and the cost of financing the proposed roadway improvements and accesses in the right -of way, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a pro forma as justification that the developer would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site and public improvements add to the total redevelopment cost. Historically, these costs in this area have made redevelopment infeasible without tax increment assistance. The site has been predominately vacant for the last few years. The City reasonably determines that no other significant renovation/redevelopment/reuse of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 26 of 83 14 G1, Attachment 3 Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $5,324,000. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $2,395,919. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $2,928,081 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for Tax Increment Financing District No. 1-14 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high-quality development to the City. Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 15 EDA Packet Page Number 27 of 83 G1, Attachment 3 Appendix D: Redevelopment Qualifications for the District Maplewood Economic Development Authority Tax Increment Financing District No. 1-14 EDA Packet Page Number 28 of 83 16 G1, Attachment 3 Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District Maplewood Rainbow Foods Redevelopment TIF District Maplewood, Minnesota May 21, 2020 Prepared For the City of Maplewood Prepared by: LHB, Inc. 701 Washington Avenue North, Suite 200 Minneapolis, Minnesota 55401 LHB Project No. 200336 EDA Packet Page Number 29 of 83 G1, Attachment 3 TABLE OF CONTENTS PART 1 — EXECUTIVE SUMMARY............................................................................................................................2 Purposeof Evaluation.......................................................................................................................2 Scopeof Work..................................................................................................................................3 Conclusion........................................................................................................................................3 PART 2 — MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS...................................................3 A. Coverage Test............................................................................................................................3 B. Condition of Buildings Test.........................................................................................................4 C. Distribution of Substandard Buildings.........................................................................................5 PART 3 — PROCEDURES FOLLOWED.....................................................................................................................5 PART 4 — FINDINGS............................................................. A. Coverage Test ....................................... B. Condition of Building Test ...................... 1. Building Inspection ................... 2. Replacement Cost ................... 3. Code Deficiencies .................... 4. System Condition Deficiencies C. Distribution of Substandard Structures.. ................................................................................. 5 ................................................................................. 5 ................................................................................. 7 .................................................................................7 .................................................................................7 ................................................................................. 7 .................................................................................8 .................................................................................8 PART 5 - TEAM CREDENTIALS..............................................................................................................................10 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 EDA Packet Page Number 30 of 83 Page 1 of 10 Final Report G1, Attachment 3 PART 1- EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Maplewood to inspect and evaluate the properties within a Tax Increment Financing Redevelopment District ("TIF District") proposed to be established by the City. The proposed TIF District is located at the northwest corner of Gervais Avenue and White Bear Avenue (Diagram 1). The purpose of LHB's work is to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether two (2) buildings on one (1) parcel, located within the proposed TIF District, meet the qualifications required for a Redevelopment District. Diagram 1 — Proposed TIF District Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 2 of 10 Final Report EDA Packet Page Number 31 of 83 G1, Attachment 3 SCOPE OF WORK The proposed TIF District consists of one (1) parcel with two (2) buildings. Two (2) buildings were inspected on April 27, 2020. Building Code and Condition Deficiency reports for the buildings that were inspected are located in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement. • 100 percent of the buildings are structurally substandard which is above the 50 percent requirement. • The substandard buildings are reasonably distributed. The remainder of this report describes our process and findings in detail. PART 2 - MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: INTERIOR INSPECTION "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." EXTERIOR INSPECTION AND OTHER MEANS "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." DOCUMENTATION "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." QUALIFICATION REQUIREMENTS Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels: A. COVERAGE TEST ..."parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots..." The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures." Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 3 of 10 Final Report EDA Packet Page Number 32 of 83 G1, Attachment 3 B. CONDITION OF BUILDINGS TEST Minnesota Statutes, Section 469.174, Subdivision 10(a) states, "...and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;" 1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: "For purposes of this subdivision, `structurally substandard' shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." a. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b) defined as "structurally substandard", due to concerns expressed by the State of Minnesota Court of Appeals in the WalserAuto Sales, Inc. vs. City of Richfield case filed November 13, 2001. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence." "Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: • The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. • Chapter 13 of the 2015 Minnesota Building Code states, "Buildings shall be designed and constructed in accordance with the International Energy Conservation Code." Furthermore, Minnesota Rules, Chapter 1305.0021 Subpart 9 states, "References to the International Energy Conservation Code in this code mean the Minnesota Energy Code..." • The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. • In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. • Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 4 of 10 Final Report EDA Packet Page Number 33 of 83 G1, Attachment 3 C. DISTRIBUTION OF SUBSTANDARD BUILDINGS Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of the following conditions, "reasonably distributed throughout the district." (1) "Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; (3) tank facilities, or property whose immediately previous use was for tank facilities..." Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed throughout the district as compared to the location of all buildings in the district. For example, if all of the buildings in a district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the required 70 percent coverage for the district), we would evaluate the distribution of the substandard buildings compared with only the half of the district where the buildings are located. If all of the buildings in a district are located evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota Court of Appeals in the WalserAuto Sales, Inc. vs. City of Richfield case filed November 13, 2001. PART 3 - PROCEDURES FOLLOWED LHB inspected two (2) of the two (2) buildings during the day of April 27, 2020. PART 4 - FINDINGS A. COVERAGE TEST 1. The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, GIS mapping and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 5 of 10 Final Report EDA Packet Page Number 34 of 83 G1, Attachment 3 FINDING The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision (a) (1). b Diagram 2 — Coverage Diagram Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 6 of 10 Final Report EDA Packet Page Number 35 of 83 G1, Attachment 3 B. CONDITION OF BUILDING TEST 1. BUILDING INSPECTION The first step in the evaluation process is the building inspection. After an initial walk-thru, the inspector makes a judgment whether or not a building "appears" to have enough defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code and non -code deficiencies in the building. 2. REPLACEMENT COST The second step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2020. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Maplewood, Minnesota. Replacement cost includes labor, materials, and the contractor's overhead and profit. Replacement costs do not include architectural fees, legal fees or other "soft" costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix A. CODE DEFICIENCIES The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is actually a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2020; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. FINDING Two (2) out of two (2) buildings (100 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). Building Code, Condition Deficiency and Context Analysis reports for the buildings in the proposed TIF District can be found in Appendix B of this report. Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 7 of 10 Final Report EDA Packet Page Number 36 of 83 G1, Attachment 3 4. SYSTEM CONDITION DEFICIENCIES If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or deficiencies should be of sufficient total significance to justify "substantial renovation or clearance." Based on this definition, LHB re-evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted "substantial renovation or clearance" based on the criteria we outlined above. System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors and doors. The evaluation of system condition deficiencies was made by reviewing all available information contained in City records, and making interior and exterior inspections of the buildings. LHB only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of "service life" used up for a particular component unless it was an obvious part of that component's deficiencies. After identifying the system condition deficiencies in each building, we used our professional judgment to determine if the list of defects or deficiencies is of sufficient total significance to justify "substantial renovation or clearance." FINDING In our professional opinion, two (2) out of two (2) buildings (100 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. This exceeds the 50 percent requirement of Subdivision 10a(1). C. DISTRIBUTION OF SUBSTANDARD STRUCTURES Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District (Diagram 3). Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 8 of 10 Final Report EDA Packet Page Number 37 of 83 G1, Attachment 3 FINDING The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings. Diagram 3 — Substandard Buildings Shaded green area depicts parcels with buildings. Shaded orange area depicts substandard buildings. Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 9 of 10 Final Report EDA Packet Page Number 38 of 83 G1, Attachment 3 PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA, LEED AP - Project Principal/TIF Analyst Michael has 32 years of experience as project principal, project manager, project designer and project architect on planning, urban design, educational, commercial and governmental projects. He has become an expert on Tax Increment Finance District analysis assisting over 100 cities with strategic planning for TIF Districts. He is an Architectural Principal at LHB and currently leads the Minneapolis office. Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning Masters degrees in City Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards and community task forces, including a term as a City Council President and as Chair of a Metropolitan Planning Organization. Most recently, he served as Chair of the Edina, Minnesota planning commission and is currently a member of the Edina city council. Michael has also managed and designed several award-winning architectural projects, and was one of four architects in the Country to receive the AIA Young Architects Citation in 1997. Philip Waugh — Project Manager/TIF Analyst Philip is a project manager with 13 years of experience in historic preservation, building investigations, material research, and construction methods. He previously worked as a historic preservationist and also served as the preservation specialist at the St. Paul Heritage Preservation Commission. Currently, Phil sits on the Board of Directors for the Preservation Alliance of Minnesota. His current responsibilities include project management of historic preservation projects, performing building condition surveys and analysis, TIF analysis, writing preservation specifications, historic design reviews, writing Historic Preservation Tax Credit applications, preservation planning, and grant writing. Phil Fisher— Inspector For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At the University of Minnesota he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities Condition Assessment project involving over 2,000 buildings. W\20Proj\200336\300 Design\Reports\Final Report\200336 Maplewood Rainbow Foods Redevelopment TIF Report.docx APPENDICES APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 Page 10 of 10 Final Report EDA Packet Page Number 39 of 83 APPENDIX Property Condition Assessment Summary Sheet EDA Packet Page Number 40 of 83 G1, Attachment 3 CD J G t Attachment 3 ( { 200 - E \ CL } o k ! Q - ca [ }_ ) - - 7 - $ ) - o \ \ LL- } - 2 / IS < _ - / _ 0 \ \) 2 © - , < - :} E ƒ F- \ I= = 2 EDA Packet Page Numb4\] of 83 G1, Attachment 3 APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports EDA Packet Page Number 42 of 83 Maplewood Rainbow Foods Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report Map No. & Building Name: Address: Parcel ID: Inspection Date(s) & Time(s): Inspection Type: Parcel A Building 1 2501 White Bear Ave N, Maplewood, MN 55109 112922230008 April 27, 2020 1:00 PM Interior and Exterior G1, Attachment 3 Former Rainbow Grocery Store Summary of Deficiencies: It is our professional opinion that this building is Substandard because: Substantial renovation is required to correct Conditions found. Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements 1. None observed. Combination of Deficiencies 1. Essential Utilities and Facilities a. Staff breakroom sink is not ADA code -compliant. b. Access to the mezzanine is not ADA code -compliant. 2. Light and Ventilation a. HVAC system is not code -compliant. b. Electrical wiring is not code -compliant. Fire Protection/Adequate Egress a. Thresholds do not comply with code for maximum height. b. Glass doors do not have code -compliant 10 -inch kick plates. c. Smoke detectors do not comply with code. d. The building sprinkler system does not comply with code. e. Emergency notification system does not comply with code. f. Floor tile is damaged, creating an impediment to emergency egress, which is contrary to code. g. Emergency lighting does not comply with code. $4,697,866 $1,211,660 25.79% Maplewood Rainbow Foods Redevelopment TIF District Page 1 of 2 Building Report LHB Project No. 200336 Building 1 — Former Rainbow Foods Grocery Store EDA Packet Page Number 43 of 83 G1, Attachment 3 4. Layout and Condition of Interior Partitions/Materials a. Ceiling tile is water stained from roofing leaks. b. Ceiling tile is missing/damaged and should be replaced. c. Interior walls should be repaired/repainted. d. Mold is present. 5. Exterior Construction a. Concrete block is failing, allowing for water intrusion, contrary to code. b. Mortar is failing, allowing for water intrusion, contrary to code. c. Caulking is failing, allowing for water intrusion, contrary to code. d. Roofing material has failed, allowing for water intrusion, contrary to code. Description of Code Deficiencies 1. Staff break room is not ADA code -compliant. 2. Access to the mezzanine is not ADA code -compliant. 3. The HVAC system is not code -compliant. 4. Thresholds are not code -compliant. 5. Glass doors are not code -compliant. 6. The building sprinkler is not code -compliant. 7. The emergency notification system is not code -compliant. 8. Smoke detectors are not code -compliant. 9. Floor tile is damaged, creating an impediment to emergency egress, contrary to code. 10. Emergency lighting is not code -compliant. 11. Damaged exterior concrete blocks and mortar should be repaired/replaced to prevent water intrusion per code. 12. Failed caulking should be replaced to prevent water intrusion per code. 13. Failed roofing material should be replaced to prevent water intrusion per code. Overview of Deficiencies This one-story grocery store is currently vacant. Exterior block and mortar are failing, allowing for water intrusion, contrary to code. Exterior block work should be repainted. The roofing system is failing, allowing for water intrusion, contrary to code. Exterior caulking has failed, allowing for water intrusion, contrary to code. The HVAC system is not code -compliant. Thresholds are not code -compliant. Interior walls should be repaired/repainted. Stained and missing ceiling tile should be replaced. Life safety systems do not fully comply with code. Damaged floor tile should be replaced to comply with emergency egress code. M:\20Proj\200336\300 Design\Reports\Building Reports\2501 White Bear Ave N Rainbow Grocery\2501 White Bear Ave N Rainbow Grocery Store Building Report.docx Maplewood Rainbow Foods Redevelopment TIF District Page 2 of 2 Building Report LHB Project No. 200336 Building 1 — Former Rainbow Foods Grocery Store EDA Packet Page Number 44 of 83 Maplewood Rainbow Foods Redevelopment TIF District Building Code, Condition Deficiency and Context Analysis Report Parcel No. & Building Name: Address and Parcel ID: Parcel ID: Inspection Date(s) & Time(s): Inspection Type: Parcel A Building 2 2501 White Bear Ave N, Maplewood, MN 55109 112922230008 April 27, 2020 1:30 PM Interior and Exterior G1, Attachment 3 Strip Mall Summary of Deficiencies: It is our professional opinion that this building is Substandard because: Substantial renovation is required to correct Conditions found. Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements 1. None observed. Combination of Deficiencies 1. Essential Utilities and Facilities a. Staff breakroom does not comply with accessibility code. b. Restroom partitions do not comply with accessibility code. 2. Light and Ventilation a. HVAC system is not code compliant. b. Water heater is damaged. Fire Protection/Adequate Egress a. Glass doors do not have code required kick -plates. b. Thresholds do not comply with code for maximum height. c. Floor tile is damaged/missing, creating an impediment to emergency egress, which is contrary to code. d. Emergency notification system is not code compliant. e. Smoke detectors do not comply with code. f. Emergency lighting does not comply with code. g. Building sprinkler system is not fully code compliant. Maplewood Rainbow Foods Redevelopment TIF District Page 1 of 2 LHB Project No. 200336 $5,223,398 $1,089,005 20.85% Building Report Building 2 — Strip Mall EDA Packet Page Number 45 of 83 G1, Attachment 3 4. Layout and Condition of Interior Partitions/Materials a. Interior walls should be repaired/repainted. b. Ceiling tile is stained from roof leaks. c. Mold is present in the walk-in coolers. Exterior Construction a. Sidewalks are damaged and should be repaired/replaced. b. Windows are failing, allowing for water intrusion, contrary to code. c. Concrete block is cracked/damaged allowing for water intrusion, contrary to code. d. Caulking has failed, allowing for water intrusion, contrary to code. e. Roofing material has failed, allowing for water intrusion, contrary to code. f. Stone veneer is falling off the exterior wall. g. Exterior walls should be repainted. h. Exterior metal doors are failing, allowing for water intrusion, contrary to code. i. Gas meters are not properly protected per code. Description of Code Deficiencies 1. Staff breakroom should be modified to comply with accessibility code. 2. Restroom partitions are not properly spaced for accessibility code. 3. The HVAC system is not code compliant. 4. Glass doors do not have code required 10 -inch kick plates. 5. Thresholds are not code compliant for maximum height. 6. Damaged floor tile should be repaired/replaced to create an unimpeded means for emergency egress per code. 7. Smoke detectors do not comply with code. 8. Emergency notification system does not comply with code. 9. Emergency lighting is not code compliant. 10. Building sprinkler system is not fully code compliant. 11. Windows are failing, allowing for water intrusion, contrary to code. 12. Cracked/damaged concrete block should be repaired/replaced to prevent water intrusion per code. 13. Failed caulking should be replaced to prevent water intrusion per code. 14. Failing exterior metal doors should be repaired/replaced to prevent water intrusion per code. 15. Gas meters should be protected per code. 16. Roofing material has failed, allowing for water intrusion, contrary to code. Overview of Deficiencies This strip mall is currently partially occupied. The exterior concrete block and mortar is failing, allowing for water intrusion, contrary to code. The roofing material has failed, allowing for water intrusion, contrary to code. Windows are failing, allowing for water intrusion, contrary to code. Exterior block work should be repainted. Exterior metal doors are failing, allowing for water intrusion, contrary to code. Glass doors do not have code required 10 -inch kick plates. Thresholds do not comply with code. Life safety systems do not comply with code. Interior walls should be repaired/repainted. Floor tile is damaged and should be repaired/replaced to create a code compliant means for emergency egress. Gas meters should be protected per code. M:\20Proj\200336\300 Design\Reports\Building Reports\2501 White Bear Ave N Strip Mall\2501 White Bear Ave N Strip Mall Building Report.docx Maplewood Rainbow Foods Redevelopment TIF District Page 2 of 2 Building Report LHB Project No. 200336 Building 2 — Strip Mall EDA Packet Page Number 46 of 83 APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs G1, Attachment 3 EDA Packet Page Number 47 of 83 Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report Building Type: Location: Story Count: Story Height (L.F.): Floor Area (S.F.): Labor Type: Basement Included Square Foot Cost Estimate Report Rainbow Foods Building u Grocery Store,1 Story with Decorative Concrete Block / Steel Joists G1, Attachment 3 Date: 4/29/2020 MAPLEWOOD, MN 1 1 "a 21 Foot: $83.89 significantly. Building Cost: 56000 OPN No Data Release: Year 2019 Costs are derived from a building model with basic components. Cost Per Square Scope differences and market conditions can cause costs to vary Foot: $83.89 significantly. Building Cost: $4,697,866.45 % of Total Cost Per S.F. Cost A1010 Substructure Standard Foundations $2.93 $163,847.75 A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 $1.65 $92,121.15 PLF, 12" thick A10101102500 Strip footing, concrete, reinforced, load 5.1 KLF, soil bearing capacity $0.81 $45,461.68 3 KSF, 12" deep x 24" wide A10102107250 Spread footings, 3000 PSI concrete, load 75K, soil bearing capacity 3 $0.47 $26,264.92 KSF, 5' - 6" square x 13" deep A1030 Slab on Grade $5.62 $314,796.16 A10301202240 Slab on grade, 4" thick, non industrial, reinforced $5.62 $314,796.16 A2010 Basement Excavation $0.30 $17,070.48 A20101106911 Excavate and fill, 100,000 SF, 4' deep, sand, gravel, or common $0.30 $17,070.48 earth, on site storage B1010 Floor Construction $0.46 $25,658.73 B10107203550 Fireproofing, gypsum board, fire rated, 1 layer, 1/2" thick, 14" steel $0.46 $25,658.73 column, 2 hour rating, 18 PLF B1020 Roof Construction $10.29 $575,965.04 B10201124500 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 30'x30' $8.88 $497,193.20 bay, 28" deep, 40 PSF superimposed load, 62 PSF total load Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 EDA Packet Page Number 48 of 83 Page 1 of 4 Replacement Cost Report Building 1 - Former Rainbow Foods Grocery G1, Attachment 3 810201124600 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 30'x30' $1.41 $78,771.84 bay, 28" deep, 40 PSF superimposed load, 62 PSF total load, add for column B2010 Exterior Walls $7.41 $415,145.12 820101155450 Concrete block (CMU) wall, split rib, 8 ribs, hollow, regular weight, $7.41 $415,145.12 8x8x16, reinforced, vertical #5@16", grouted B2020 Exterior Windows $2.91 $163,125.16 820202101450 Aluminum flush tube frame, for 1/4"glass, 1-3/4" x 4-1/2", 5'x6' $1.52 $85,150.07 opening, 1 intermediate horizontal 820202202300 Glazing panel, plate glass, 3/8" thick, tinted $1.39 $77,975.09 B2030 Exterior Doors $0.45 $25,475.99 820301105850 Doors, stainless steel & glass, balanced, standard, premium, 3'-0" x 7'- $0.36 $19,880.92 0" opening 820302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'-0" $0.10 $5,595.07 x 7'-0" opening B3010 Roof Coverings $5.55 $311,029.26 *B30101203300 Roofing, single ply membrane, EPDM, 60 mils, fully adhered $2.56 $143,360.00 830103203090 Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite $2.19 $122,517.92 830104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face $0.56 $31,629.40 830106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick $0.24 $13,521.94 B3020 Roof Openings $0.15 $8,232.29 830202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'-6" x 3'-0", galvanized $0.04 $2,422.10 steel, 165 lbs 830202102100 Smoke hatch, unlabeled, galvanized, 2'-6" x 3', not incl hand winch $0.10 $5,810.19 operator C1010 Partitions $3.01 $168,620.16 C10101265800 Metal partition, 5/8"fire rated gypsum board face, 1/4" sound $1.10 $61,824.84 deadening gypsum board, 2-1/2" @ 24", same opposite face, no insulation C10107101001 1/2" fire rated gypsum board, taped & finished, painted on metal $1.91 $106,795.32 furring C1020 Interior Doors $1.99 $111,626.57 C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality, $1.99 $111,626.57 flush, 3'-0" x 7'-0" x 1-3/8" C3010 Wall Finishes $0.30 $16,679.23 C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work, $0.30 $16,679.23 primer & 2 coats C3020 Floor Finishes $3.43 $192,200.00 * C30204101640 Vinyl tile, maximum $3.21 $180,000.00 * C30204101740 Tile, porcelain type, minimum $0.22 $12,200.00 C3030 Ceiling Finishes $0.08 $4,290.00 * C30302105800 Acoustic ceilings, 5/8" fiberglass board, 24" x 48" tile, tee grid, $0.08 $4,290.00 suspended support Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report LHB Project No. 200336 Page 2 of 4 Building 1 - Former Rainbow Foods Grocery EDA Packet Page Number 49 of 83 G1, Attachment 3 D1010 Elevators and Lifts $1.26 $70,318.40 D10101101600 Hydraulic, passenger elevator, 2000 Ib, 2 floors, 100 FPM $1.26 $70,318.40 D2010 Plumbing Fixtures $1.86 $104,158.57 D20101102080 Water closet, vitreous china, bowl only with flush valve, wall hung $1.23 $68,624.45 D20102102000 Urinal, vitreous china, wall hung $0.06 $3,604.53 D20103101560 Lavatory w/trim, vanity top, PE on Cl, 20" x 18" $0.18 $10,155.22 D20104404340 Service sink w/trim, PE on Cl,wall hung w/rim guard, 24" x 20" $0.24 $13,163.65 D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH $0.15 $8,610.72 D2020 Domestic Water Distribution $0.44 $24,403.37 D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480 $0.44 $24,403.37 GPH D2040 Rain Water Drainage $0.94 $52,860.44 D20402104360 Roof drain, Cl, soil,single hub, 6" diam, 10' high $0.53 $29,751.33 D20402104400 Roof drain, Cl, soil,single hub, 6" diam, for each additional foot add $0.41 $23,109.11 D3050 Terminal & Package Units $8.71 $487,830.56 D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 SF, $8.71 $487,830.56 29.17 ton D4010 Sprinklers $2.73 $152,706.40 D40104100640 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 50,000 SF $2.73 $152,706.40 D4020 Standpipes $0.29 $16,476.00 D40203101580 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, 1 $0.14 $7,865.54 floor D40203101600 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, $0.15 $8,610.46 additional floors D5010 Electrical Service/Distribution $1.49 $83,367.91 D50101200480 Overhead service installation, includes breakers, metering, 20' conduit $0.42 $23,356.25 & wire, 3 phase, 4 wire, 120/208 V, 1200 A D50102300480 Feeder installation 600 V, including RGS conduit and XHHW wire, $0.55 $30,839.60 1200 A D50102400320 Switchgear installation, incl switchboard, panels & circuit breaker, $0.52 $29,172.06 120/208 V, 3 phase, 1200 A D5020 Lighting and Branch Wiring $9.07 $507,652.58 D50201100240 Receptacles incl plate, box, conduit, wire, 2.5 per 1000 SF, .3 W per $1.37 $76,978.28 SF, with transformer D50201350200 Miscellaneous power, to .5 watts $0.15 $8,676.08 D50201400240 Central air conditioning power, 3 watts $0.71 $39,906.72 D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 $6.82 $382,091.50 FC, 10 fixtures @32watt per 1000 SF D5030 Communications and Security $1.28 $71,565.09 Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 EDA Packet Page Number 50 of 83 Page 3 of 4 Replacement Cost Report Building 1 - Former Rainbow Foods Grocery D50309100456 D50309100462 D50309200102 E1090 Communication and alarm systems, fire detection, addressable, 100 detectors, includes outlets, boxes, conduit and wire Fire alarm command center, addressable with voice, excl. wire & conduit Internet wiring, 2 data/voice outlets per 1000 S.F. Equipment & Furnishings Other Equipment Special Construction SubTotal Contractor Fees (General Conditions,Overhead,Profit) Architectural Fees User Fees 100% 15.0% 0.0% 0.0% G1, Attachment 3 $0.71 $39,815.03 $0.12 $6,496.48 $0.45 $25,253.58 $0.00 $0.00 $72.95 $4,085,101.26 $10.94 $612,765.19 $0.00 $0.00 $0.00 $0.00 Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report LHB Project No. 200336 Page 4 of 4 Building 1 - Former Rainbow Foods Grocery EDA Packet Page Number 51 of 83 Maplewood Rainbow Foods Redevelopment TIF District Code Deficiency Cost Report Parcel A Building 1 - 2501 White Bear Ave N, Maplewood, MN 55109 - PID 112922230008 Former Rainbow Grocery Store Accessibility Items Staff Breakroom Modify staff break room to comply with code Mezzanine Create code compliant access to mezzanine Structural Elements Exiting Thresholds Modify thresholds to comply with code Floor Tile Replace damaged floor tile to create an unimpeded means of egress per code Glass Doors Install code required door kicks Fire Protection Smoke Detectors Install code compliant smoke detectors Emergency Notification System Install code compliant emergency notification system Building Sprinkler System Modify building sprinkler system to comply with code Emergency Lighting System Install code compliant emergency lighting system Exterior Construction Concrete Block Repair/replace damage concrete block to prevent water intrusion per code Caulking G1, Attachment 3 $ 1,500.00 EA 1 $ 1,500.00 $ 1.26 SF 56,000 $ 70,560.00 $ 500.00 EA 4 $ 2,000.00 $ 1.15 SF 56,000 $ 64,400.00 $ 100.00 EA 8 $ 800.00 $ 0.71 SF 56,000 $ 39,760.00 $ 0.12 SF 56,000 $ 6,720.00 $ 1.73 SF 56,000 $ 96,880.00 $ 0.18 SF 56,000 $ 10,080.00 $ 1.85 SF 56,000 $ 103,600.00 Maplewood Rainbow Foods Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 200336 Page 1 of 2 Building 1 - Former Rainbow Foods Grocery Store EDA Packet Page Number 52 of 83 G1, Attachment 3 Remove/replace failed caulking to prevent water intrusion per code $ 0.05 SF 56,000 $ 2,800.00 Roof Construction Roofing Material Remove failed roofing material Install roofing material to prevent water intrusion per code Mechanical- Electrical Mechanical Install code compliant HVAC system $ 0.25 SF 56,000 $ 14,000.00 $ 5.55 SF 56,000 $ 310,800.00 $ 8.71 SF 56,000 $ 487,760.00 Total Code Improvements $ 1,211,660 Maplewood Rainbow Foods Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 200336 Page 2 of 2 Building 1 - Former Rainbow Foods Grocery Store EDA Packet Page Number 53 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store F _ 2020-04-2712-47-02.j pg 20200427_124916.jpg 20200427_124932.jpg 20200427_124937.jpg 20200427_124959.jpg 20200427_125011.jpg EDA Packet Page Number 54 of 83 r 20200427_124919.jpg q 1, 20200427_124943.jpg r 20200427_125017.jpg Page 1 of 11 G1, Attachment 3 20200427_124929.jpg 20200427_124949.jpg 20200427_125028.jpg Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store r ifl mr �. P 20200427_125045.jpg 20200427_125053.jpg 20200427_125055.jpg 20200427_125106.jpg G1, Attachment 3 n jltrr 20200427_125118.jpg 20200427_125124.jpg 20200427_125209.jpg 20200427_125223.jpg 20200427_125143.jpg I 20200427_125150.jpg • 20200427_125227.jpg Page 2 of 11 20200427_125232.jpg EDA Packet Page Number 55 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427125236.jpg 20200427125240.jpg 20200427125252.jpg 20200427125259.jpg 20200427125301.jpg 20200427125310.jpg 20200427125407.jpg A 20200427125411.jpg 20200427125421.jpg 20200427125424.jpg G1, Attachment 3 20200427125257.jpg 20200427125343.jpg Page 3 of 11 EDA Packet Page Number 56 of 83 G1, Attachment 3 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427_125429.jpg 20200427_125453.jpg - 20200427_125434.jpg I 20200427_125500.jpg 20200427_125438.jpg 20200427_125445.jpg 20200427_125509.jpg 20200427_125511.jpg Page 4 of 11 EDA Packet Page Number 57 of 83 .-, � M a-_---7 7. 20200427_125520.jpg 20200427_125524.jpg 20200427_125554.jpg Page 4 of 11 EDA Packet Page Number 57 of 83 G1, Attachment 3 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427_125652.jpg 20200427_125708.jpg 20200427_125733.jpg 20200427_125803.jpg 20200427_125811.jpg 20200427_125821.jpg 20200427_125835.jpg 20200427_125849.jpg 20200427_125851.jpg 20200427_125852.jpg Page 5 of 11 EDA Packet Page Number 58 of 83 7. 20200427_125626.jpg 20200427_125636.jpg 20200427_125652.jpg 20200427_125708.jpg 20200427_125733.jpg 20200427_125803.jpg 20200427_125811.jpg 20200427_125821.jpg 20200427_125835.jpg 20200427_125849.jpg 20200427_125851.jpg 20200427_125852.jpg Page 5 of 11 EDA Packet Page Number 58 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427_125906.jpg 20200427_125917.jpg 20200427_125940.jpg G1, Attachment 3 20200427_130007.jpg 20200427_130054.jpg 20200427_130109.jpg 20200427_130129.jpg 20200427_130135.jpg 20200427_130148.jpg 20200427_130210.jpg 20200427_130215.jpg Page 6 of 11 20200427_130220.jpg EDA Packet Page Number 59 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427_130234.jpg 20200427_130241.jpg 20200427_130247.jpg --r 20200427_130340.jpg 20200427_130342.jpg 20200427_130353.jpg 20200427_130430.jpg 20200427_130443.jpg EDA Packet Page Number 60 of 83 20200427_130551.jpg Page 7 of 11 G1, Attachment 3 20200427_130318.jpg 20200427_130401.jpg 20200427_130554.jpg Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store G1, Attachment 3 6j 20200427_130609.jpg 20200427_130621.jpg 20200427_130641.jpg 20200427_130710.jpg 20200427_130727.jpg 20200427_130732.jpg 20200427_130736.jpg 20200427_130752.jpg 20200427_130808.jpg 20200427_130810.jpg 20200427_130819.jpg Page 8 of 11 h 20200427_130830.jpg EDA Packet Page Number 61 of 83 G1, Attachment 3 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427_130831.jpg 20200427_130838.jpg 20200427_130915.jpg 20200427_131017.jpg 20200427_131019.jpg 20200427_131031.jpg 20200427_131112.jpg 20200427_131120.jpg EDA Packet Page Number 62 of 83 20200427_131037.jpg t 20200427_131125.jpg 20200427_131137.jpg Page 9 of 11 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 6m 20200427_131156.jpg G1, Attachment 3 20200427_131207.jpg 20200427_131248.jpg 20200427_131251.jpg 20200427_131302.jpg �, f0 20200427_131310.jpg 20200427_131322.jpg 20200427_131326.jpg 20200427_131328.jpg 20200427_131330.jpg 20200427_131332.jpg Page 10 of 11 20200427_131335.jpg EDA Packet Page Number 63 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 1 - Former Rainbow Foods Grocery Store 20200427_131343.jpg 1 20200427_131412.jpg 20200427_131415.jpg 20200427_132646.jpg ay 20200427_132735.jpg 20200427_132651.jpg EDA Packet Page Number 64 of 83 20200427_132653.jpg Page 11 of 11 G1, Attachment 3 20200427_132642.1ipg 0. 4 r 20200427_132725.jpg Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report 145IMeans 3=Square Foot Cost Estimate Report Esti Strip Mall Building Type: Location: Story Count: Story Height (L.F.): Floor Area (S.F.): Labor Type: Basement Included Data Release: Foot: Building Cost: Store, 1 Story with Decorative Concrete Block / Steel Joists G1, Attachment 3 Date: 5/4/2020 MAPLEWOOD, MN 16 .� 585004 OPN P t� •� No —. r— _ Year 2020 Quarter 1 Costs are derived from a building model with basic components. $89.29 Scope differences and market conditions can cause costs to vary significantly. $5,223,398.51 EDA Packet Page Number 65 of 83 % of Total Cost Per S.F. Cost A1010 Standard Foundations $4.13 $241,487.24 A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, $2.41 $141,194.40 7.2 PLF, 12" thick A10101102500 Strip footing, concrete, reinforced, load 5.1 KLF, soil bearing $1.21 $70,794.48 capacity 3 KSF, 12" deep x 24" wide A10102107250 Spread footings, 3000 PSI concrete, load 75K, soil bearing $0.50 $29,498.36 capacity 3 KSF, 5' - 6" square x 13" deep A1030 Slab on Grade $5.98 $349,843.46 A10301202240 Slab on grade, 4" thick, non industrial, reinforced $5.98 $349,843.46 A2010 Basement Excavation $0.33 $19,289.21 A20101106911 Excavate and fill, 100,000 SF, 4' deep, sand, gravel, or common $0.33 $19,289.21 earth, on site storage B1010 Floor Construction $0.48 $27,998.99 B10107203550 Fireproofing, gypsum board, fire rated, 1 layer, 1/2" thick, 14" $0.48 $27,998.99 steel column, 2 hour rating, 18 PLF B1020 Roof Construction $11.88 $695,252.03 B10201124500 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, $10.31 $603,390.06 30'x30' bay, 28" deep, 40 PSF superimposed load, 62 PSF total load B10201124600 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, $1.57 $91,861.97 30'x30' bay, 28" deep, 40 PSF superimposed load, 62 PSF total load, add for column B2010 Exterior Walls $8.37 $489,667.97 Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report LHB Project No. 200336 Page 1 of 4 Building 2 - Strip Mall EDA Packet Page Number 65 of 83 G1, Attachment 3 820101155450 Concrete block (CMU) wall, split rib, 8 ribs, hollow, regular $8.37 $489,667.97 weight, 8x8x16, reinforced, vertical #5@16", grouted B2020 Exterior Windows $3.24 $189,683.97 820202101450 Aluminum flush tube frame, for 1/4"glass, 1-3/4" x 4-1/2", 5'x6' $1.71 $100,127.23 opening, 1 intermediate horizontal 820202202300 Glazing panel, plate glass, 3/8" thick, tinted $1.53 $89,556.74 B2030 Exterior Doors $0.47 $27,603.27 820301105850 Doors, stainless steel & glass, balanced, standard, premium, 3'- $0.37 $21,647.55 0" x 7'-0" opening 820302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, $0.10 $5,955.72 3'-0" x 7'-0" opening B3010 Roof Coverings $5.67 $331,470.09 *B30101206400 Roofing, single ply membrane, reinforced, PVC, 60 mils, $2.26 $132,210.00 partially adhered, mechanical fasteners 830103203090 Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite $2.24 $131,139.45 830104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face $0.81 $47,250.24 830106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick $0.36 $20,870.40 B3020 Roof Openings $0.14 $8,462.78 830202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'-6" x 3'-0", $0.04 $2,482.70 galvanized steel, 165 lbs 830202102100 Smoke hatch, unlabeled, galvanized, 2'-6" x 3', not incl hand $0.10 $5,980.08 winch operator C1010 Partitions $3.22 $188,502.17 C10101265800 Metal partition, 5/8"fire rated gypsum board face, 1/4" sound $1.13 $66,290.64 deadening gypsum board, 2-1/2" @ 24", same opposite face, no insulation C10107101001 1/2" fire rated gypsum board, taped & finished, painted on metal $2.09 $122,211.53 furring C1020 Interior Doors $0.38 $22,274.10 * C10201022500 Door, single leaf, wood frame, 3'-0" x 7'-0" x 1-3/8", birch, solid $0.38 $22,274.10 core C3010 Wall Finishes $0.30 $17,737.01 C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller $0.30 $17,737.01 work, primer & 2 coats C3020 Floor Finishes $1.97 $115,250.00 * C30204100060 Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24", 24 oz $1.55 $90,600.00 * C30204101620 Vinyl tile, 3/32", minimum $0.42 $24,650.00 C3030 Ceiling Finishes $2.53 $148,200.00 * C30302105900 Acoustic ceilings, 5/8" fiberglass board, 24" x 24" tile, tee grid, $2.53 $148,200.00 suspended support D2010 Plumbing Fixtures $1.98 $115,772.64 Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report LHB Project No. 200336 Page 2 of 4 Building 2 - Strip Mall EDA Packet Page Number 66 of 83 G1, Attachment 3 D20101102080 Water closet, vitreous china, bowl only with flush valve, wall $1.30 $75,798.52 hung D20102102000 Urinal, vitreous china, wall hung $0.07 $4,103.49 D20103101560 Lavatory w/trim, vanity top, PE on Cl, 20" x 18" $0.19 $11,350.54 D20104404340 Service sink w/trim, PE on Cl,wall hung w/rim guard, 24" x 20" $0.24 $14,236.45 D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH $0.18 $10,283.64 D2020 Domestic Water Distribution $0.48 $27,981.95 D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, $0.48 $27,981.95 480 GPH D2040 Rain Water Drainage $0.98 $57,382.02 D20402104360 Roof drain, Cl, soil,single hub, 6" diam, 10' high $0.56 $32,518.81 D20402104400 Roof drain, Cl, soil,single hub, 6" diam, for each additional foot $0.43 $24,863.21 add D3050 Terminal & Package Units $9.08 $531,375.98 D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 $9.08 $531,375.98 SF, 29.17 ton D4010 Sprinklers $3.01 $175,943.43 D40104100640 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 50,000 SF $3.01 $175,943.43 D4020 Standpipes $0.31 $18,354.97 D40203101580 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, $0.15 $8,763.58 1 floor D40203101600 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, $0.16 $9,591.39 additional floors D5010 Electrical Service/Distribution $1.55 $90,477.24 D50101200480 Overhead service installation, includes breakers, metering, 20' $0.44 $25,741.03 conduit & wire, 3 phase, 4 wire, 120/208 V, 1200 A D50102300480 Feeder installation 600 V, including RGS conduit and XHHW $0.57 $33,077.00 wire, 1200 A D50102400320 Switchgear installation, incl switchboard, panels & circuit breaker, $0.54 $31,659.21 120/208 V, 3 phase, 1200 A D5020 Lighting and Branch Wiring $9.79 $572,842.30 D50201100240 Receptacles incl plate, box, conduit, wire, 2.5 per 1000 SF, .3 W $1.49 $86,957.64 per SF, with transformer D50201350200 Miscellaneous power, to .5 watts $0.16 $9,568.85 D50201400240 Central air conditioning power, 3 watts $0.82 $47,752.85 D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, $7.33 $428,562.96 40 FC, 10 fixtures @32watt per 1000 SF D5030 Communications and Security $1.35 $79,232.84 D50309100456 Communication and alarm systems, fire detection, addressable, $0.75 $44,052.26 100 detectors, includes outlets, boxes, conduit and wire D50309100462 Fire alarm command center, addressable with voice, excl. wire & $0.12 $7,061.24 conduit Maplewood Rainbow Foods Redevelopment TIF District Replacement Cost Report LHB Project No. 200336 Page 3 of 4 Building 2 - Strip Mall EDA Packet Page Number 67 of 83 G1, Attachment 3 D50309200102 Internet wiring, 2 data/voice outlets per 1000 S.F. $0.48 $28,119.34 Equipment & Furnishings E1090 Other Equipment $0.00 $0.00 Special Construction i iiia iii ii SubTotal 100% $77.64 $4,542,085.66 Contractor Fees (General Conditions,Overhead,Profit) 15.0% $11.65 $681,312.85 Architectural Fees 0.0 % $0.00 $0.00 User Fees 0.0 % $0.00 $0.00 Maplewood Rainbow Foods Redevelopment TIF District LHB Project No. 200336 EDA Packet Page Number 68 of 83 Page 4 of 4 Replacement Cost Report Building 2 - Strip Mall Maplewood Rainbow Foods Redevelopment TIF District Code Deficiency Cost Report Parcel A Building 2 - 2501 White Bear Ave N, Maplewood, MN 55109 - PID 112922230008 Strip Mall Accessibility Items Staff Break Room Modify staff break room to comply with accessibility code $ 500.00 Lump Restroom Partitions Modify location of restroom partitions to comply with accessibility code $ 1,500.00 Lump Structural Elements Exiting Glass Doors Install code required 10 -inch kick plates on glass doors Thresholds Install code compliant thresholds on exterior doors Flooring Replace/repair damaged/missing floor tile to create an unimpeded means for emergency egress Fire Protection Smoke Detectors Install code compliant smoke detectors Emergency Lighting Install code compliant emergency lighting Emergency Notification System Install code compliant emergency notification system Building Sprinkler System Install code compliant building sprinkler system Natural Gas Meters Protect natural gas meters per code Exterior Construction Windows Replace failed windows to prevent water intrusion per code Concrete Block Walls G1, Attachment 3 1 $ 500.00 1 $ 1,500.00 $ 100.00 Each 50 $ 5,000.00 $ 1,000.00 Lump 1 $ 1,000.00 $ 0.42 SF 10,000 $ 4,200.00 $ 0.75 SF $ 0.25 SF $ 0.12 SF $ 0.31 SF $ 1,000.00 Lump $ 2,500.00 Lump 58,500 $ 58,500 $ 58,500 $ 58,500 $ 1 $ 43,875.00 14,625.00 7,020.00 18,135.00 1,000.00 1 $ 2,500.00 Maplewood Rainbow Foods Redevelopment TIF District Code Deficiency Cost Report LHB Project No. 200336 Page 1 of 2 Building 2 - Strip Mall EDA Packet Page Number 69 of 83 Repair/replace damaged concrete blocks to prevent water intrusion per code $ 1.85 SF Caulking Remove/replace failed caulking to prevent water intrusion per code $ 0.05 SF Metal Doors Repair/replace damaged metal doors to prevent water intrusion per code $ 1,000.00 EA Roof Construction Roofing Material Remove failed roofing material $ 0.25 SF Install roofing material to prevent water intrusion per code $ 5.67 SF Mechanical- Electrical Mechanical G1, Attachment 3 58,500 $ 108,225.00 58,500 $ 2,925.00 1 $ 1,000.00 58,500 $ 14,625.00 58,500 $ 331,695.00 Install code compliant HVAC system $ 9.08 SF 58,500 $ 531,180.00 Total Code Improvements $ 1,089,005 Maplewood Rainbow Foods Redevelopment TIF District Code Deficiency Cost Report LH B Project No. 200336 Page 2 of 2 Building 2 - Strip Mall EDA Packet Page Number 70 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall F— r 7 1:.71 Er 2020-04-27_12-47-07.jpg 2020-04-27_12-47-11.jpg G1, Attachment 3 20200427_132833.jpg 20200427_132854.jpg L 20200427_133035.jpg 20200427_132932.jpg 20200427_133004.jpg 20200427_133012.jpg 20200427_133036.jpg 20200427_133043.jpg Page 1 of 10 20200427_133047.jpg EDA Packet Page Number 71 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall i G1, Attachment 3 mss. 20200427_133050.jpg w 20200427_133306.jpg 20200427_133357.jpg 20200427_133106.jpg 20200427_133331.jpg 11 20200427_133407.jpg EDA Packet Page Number 72 of 83 20200427_133141.jpg 20200427_133231.jpg 20200427_133335.jpg 20200427_133336.jpg 20200427_133409.jpg Page 2 of 10 20200427_133411.jpg Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_133414.jpg G1, Attachment 3 20200427_133426.jpg 20200427_133443.jpg 20200427_133455.jpg 20200427_133516.jpg d. 20200427_133556.jpg 20200427_133600.jpg 20200427_133540.jpg 20200427_133446.jpg 20200427_133554.jpg 20200427_133603.jpg 20200427_133611.jpg Page 3 of 10 EDA Packet Page Number 73 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_133637.jpg G1, Attachment 3 20200427_133724.jpg 20200427_133725.jpg 20200427_133729.jpg 20200427_133746.jpg tea. 20200427_133826.jpg 20200427_133801.jpg EDA Packet Page Number 74 of 83 r` 5 20200427_133803.jpg 20200427_133911.jpg Page 4 of 10 20200427_133817.jpg �X H .. t„ 20200427_133912.jpg G1, Attachment 3 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_134006.jpg i 1 , V 20200427_134056.jpg 20200427_134022.jpg 20200427_134033.jpg 20200427_134046.jpg 20200427_134102.jpg 20200427_134114.jpg 20200427_134126.jpg 20200427_134132.jpg 20200427_134153.jpg 20200427_134248.jpg Page 5 of 10 20200427_134307.jpg EDA Packet Page Number 75 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_134310.jpg 3 20200427_134318.jpg 20200427_134423.jpg 20200427_134426.jpg YC 20200427_134503.jpg 20200427_134506.jpg EDA Packet Page Number 76 of 83 20200427_134440.jpg 20200428 Page 6 of 10 G1, Attachment 3 ,r 20200427_134356.jpg 20200427_134457.jpg 20200427_134521.jpg 20200427_134343.jpg 20200427_134423.jpg 20200427_134426.jpg YC 20200427_134503.jpg 20200427_134506.jpg EDA Packet Page Number 76 of 83 20200427_134440.jpg 20200428 Page 6 of 10 G1, Attachment 3 ,r 20200427_134356.jpg 20200427_134457.jpg 20200427_134521.jpg G1, Attachment 3 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_134531.jpg 20200427_134535.jpg 20200427_134538.jpg 20200427_134557.jpg 20200427_134605.jpg 20200427_134718.jpg 20200427_134631.jpg v 1 20200427_134729.jpg 20200427_134653.jpg 20200427_134700.jpg 20200427_134741.jpg Page 7 of 10 EDA Packet Page Number 77 of 83 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_134815.jpg 20200427_134846.jpg .✓" '.wi'"• &� µa.. � #,IIY III •fir T.. .✓� qk 20200427_135031.jpg 20200427_135036.jpg G1, Attachment 3 20200427_134907.jpg 20200427_135022.jpg T l�� 20200427_135042.jpg 20200427_135118.jpg 20200427_135125.jpg 20200427_135140.jpg EDA Packet Page Number 78 of 83 20200427_135154.jpg Page 8 of 10 20200427_135205.jpg Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall is G1, Attachment 3 20200427_135219.jpg 20200427_135230.jpg 20200427_135248.jpg 20200427_135259.jpg a >- 20200427_135305.jpg 20200427_135323.jpg 20200427_135337.jpg 20200427_135338.jpg 20200427_135348.jpg 20200427_135404.jpg Page 9 of 10 EDA Packet Page Number 79 of 83 G1, Attachment 3 Maplewood Rainbow Foods Redevelopment TIF District Photos: Parcel A Building 2 - Strip Mall 20200427_135429.jpg 20200427_135509.jpg 20200427_135432.jpg j ey�.m. 20200427_135447.jpg 20200427_135456.jpg � r r —fin4 yAil 1 .0 1 µ-.�°, _. 71 . . 20200427_135532.jpg 20200427_135548.jpg 20200427_135634.jpg Page 10 of 10 EDA Packet Page Number 80 of 83 G2 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date August 10, 2020 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Jeff Thomson, Assistant Executive Director PRESENTER: Jeff Thomson, Assistant Executive Director AGENDA ITEM: Sale of Property at 1946 English St N a. Intent to Close Meeting (Minn. Stat. §13D.05 subd. 3(c)) b. Term Sheet with Roers Investments, LLC Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ✓ Contract/Agreement ❑ Proclamation Policy Issue: The City of Maplewood has received a purchase offer for property at 1946 English Street North. Recommended Action: Before the meeting is closed, the Economic Development Authority (EDA) must state on the record the specific grounds permitting the meeting to be closed and describe the subject to be discussed. Therefore, it is recommended the EDA introduce the following motion: a. Pursuant to Minnesota Statutes Section 13D.05,subd. 3(c), I hereby motion to close the meeting and go into closed session to consider purchase offers or counter offers for property located at 1946 English Street North. Upon completion of the closed session, the EDA may consider approval of a term sheet in open session if the EDA agrees with the draft terms: b. Motion to approve the term sheet with Roers Investments, LLC for the sale of property at 1946 English Street North. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0. Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: Closing the meeting has no fiscal impact. The sale of property would result in receiving proceeds from the sale. Strategic Plan Relevance: ❑ Financial Sustainability ❑ Integrated Communication ✓ Targeted Redevelopment ✓ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt. EDA Packet Page Number 81 of 83 G2 The property was previously the location of the Maplewood Moose Lodge. The city acquired the property in 2019 as part of its land acquisition and assembly strategy to facilitate redevelopment that is consistent with the Gladstone Neighborhood Redevelopment Plan. Since the city purchased the property, the building and site have remained vacant. If the project moves forward with the EDA, the property would be transferred from the city to the EDA to facilitate the sale of the property. Background The purpose of this agenda item is to consider an offer to purchase city -owned property located at 1946 English Street North. Minnesota State Statute 13D.05 subd. 3(c), allows a public body to close a meeting to consider purchase offers made for property and to develop counter offers. Attachments None EDA Packet Page Number 82 of 83 G3 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date August 10, 2020 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Jeff Thomson, Assistant Executive Director PRESENTER: Jeff Thomson, Assistant Executive Director AGENDA ITEM: Call for EDA Meeting on August 24, 2020 Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: At the beginning of the year, the Economic Development Authority (EDA) established its regular meeting schedule for 2020, which generally meets quarterly. The EDA has the ability to cancel or add meetings as needed as agenda items arise. Recommended Action: Motion to call an EDA meeting on August 24, 2020 at 6:00 p.m. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.00 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: n/a Strategic Plan Relevance: ❑ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment ❑ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt. N/A Background EDA staff recommends that the EDA call a meeting on August 24, 2020. The tentative agenda for the meeting includes the review of a Tax Increment Financing and Redevelopment Agreement for the Maple Ridge Shopping Center and CARES funding allocation for businesses. Affnr hman4c None EDA Packet Page Number 83 of 83